BUSINESS WITH PERSONALITY

JOE COLE SENT OFF AS DISCORD AT

THE BANK
ARSENAL SNATCH DRAW MINUTES OF LAST
MEETING TO
LATE DRAMA AT ANFIELD P22 SHOW SPLIT P5
Issue 1,199 Monday 16 August 2010 www.cityam.com FREE

CABLE REQUESTS GREEN

SHOWDOWN MEETING
POLITICS tax arrangements as well as his repu-
▲

BY RACHEL STEVENSON tation for enjoying a lavish lifestyle.

BUSINESS secretary Vince Cable put
himself on a potential collision
course with the coalition government
yesterday as he pointedly refused to
endorse retail tycoon Sir Philip
Green’s appointment as a govern-
ment spending tsar.
Cable, who is currently on holiday,
reiterated his hard-line stance on
tackling tax avoidance and said he
would look at setting up a meeting
with Sir Philip, whose family is resi-
The biggest shareholder in Sir
Philip’s empire is Taveta Investments,
a UK-incorporated company con-
trolled by his wife, a Monaco resident.
In 2005, his family saved a significant
amount of tax relating to the pay-
ment of a £1.14bn dividend through a
series of complex arrangements.
Sir Philip refused to talk to City A.M.
yesterday after our political editor
last week asked him questions about
his family’s tax situation.
NAMED IN THwww.E cityam.com

ED
dent in Monaco, on his return to

BB
B
CABLE SNU LE seo
August 2010
Issue 1,198 Friday 13
Westminster.
The news comes after City A.M.

OVER GREEN RO
revealed on Friday that Cable, who
has been vociferously opposed to
▲

the use of tax havens, had not been BY

U
Sir Philip Green
consulted by his government col- (left) with Kate
Moss who designs
th
th
fa
a fashion range for
leagues before Sir Philip was asked POLITICS
▲

his Top Shop chain.

BY DAVID CROW o
y Vince Cable, a Pictures: s
to lead a Whitehall efficiency BUSINESS secretar
vociferous opponent
was not consulted
of tax avoidance,
over the appoint-
Green to lead a
REUTERS c
t
ment of Sir Philip ent efficiency,
review. review into governm
.
City A.M. has learned has been asso-
Topshop billionaire Sir Philip Green, the government’s new spending tsar, and (left) Friday’s front page Picture: REUTERS
In the past, Sir Philip
“I remain of the general view that icated tax plan-
ciated with sophist in the UK and
ning arrangements
produce tax sav-
offshore locations to
British businesspeople should pay ings on behalf of non-res
bers of his family.
Cable, who is one
ident mem-

of the govern-
“My family has been a will look for ways to do things ‘better, our business on a daily basis.”
s for the business
their taxes in Britain,” Cable told ment’s lead contact
ay reacted with
community, yesterd that the Top
g
surprise on learnin asked to help never get anything
done.”
major investor, employer
Philip dismissed
ments. Yesterday, Sir arrangements,
ns over his tax
faster and cheaper’. Cable’s reservations about the
and to identify they’d other Whitehall sources said questioCity A.M: “What difference does
City A.M. yesterday. “I’d have thought Shop tycoon had beenout waste in the last three years
the coalition root
Whitehall. say on this,
reporting his But
potential savings, before office ahead there were “obviou
findings to the cabinet spendin
s contradictions”
Democrat position
telling
it make if I live on the
g due to the Liberal City A.M. under- question is whethe
and taxpayer in the UK cre-
moon – the real
r I’m qualified to
“Our job is not about who spends appointment came as Liberal
I could hensive
the point was clear that at a time “There’s a lot
but I’d better miss
told City A.M. “I’m
this one out,” he
tempted to com-
better not.”
of the compre
review in the autumn
.
Francis Maude, ministe
on tax avoidan
r for the stands
coalition was
ce.
that some Lib Dem
considering voicing
their opposition
Sir Philip ating jobs, not destroying
MPs are do the job.” was knighted for services
y in 2006, when
to the retail industr was in power,
what money where,” he said. “If the Democrat deputy leader Simon
ment, but I think I’d office, said the appointment today. Labour government
when the government has an enor- Cameron has cabinet
Prime Minister David d an exter- “extremely fortunate” t “his com-
l k
Sir
h i the past and
is them, for many years,” he
to have Sir to the Philip, the tycoon behind Top- the well-known for donating signif-
i government wants to spend x amount Hughes yesterday signalled there
mous deficit to deal with, we can’t wrote in the Mail on Sunday. “I knew on the police force or on health, that’s would be no pact between the party
afford to indulge tax avoidance.” Sir Philip hit back elsewhere my appointment would cause a fuss politics. But by the same token, I don’t and the Tories at the next election.
News that the Topshop owner has against criticism of his appointment, but the only real question is whether see spending £20, £50, or £200m, as “We want to be in government ide-
been appointed to root out waste in shrugging off questions about his tax or not I am qualified to do the job.” politics: it’s business. Whatever the ally on our own because evidently if
the public sector was met with con- arrangements and defending his abil- Sir Philip added that he just wants spends will be for – IT, general pro- we have a majority we can implement
cern by some Lib Dems in the coali- ity to make savings for the public to get on with the task in hand, claim- curement, real estate – they will not more of our policies and not only a
tion because of his family’s offshore purse. ing that he and his executive team be any different from what we do in proportion,” Hughes told the BBC.

FTSE 100 ▲5,275.44 +9.38 DOW ▼10,303.15 -16.80 NASDAQ ▼2,173.48 -16.79 £/$ ▲1.56 +0.02 £/¤ ▼1.22 –0.09 ¤/$ ▲1.28 +0.13 Certified Distribution
05/07/2010 till 01/08/10 is 94,889
 2 News
AgBank smashes Aviva investors tell
world IPO record RSA to up £5bn offer
BANKING
▲
BY HARRY BANKS
A HONG Kong and Shanghai stock
market listing of shares in
Agricultural Bank of China (AgBank)
has become the world’s largest ever
initial public offering.
AgBank said yesterday it had fully
exercised an over-allotment option
for the Shanghai portion of the stock
market listing, boosting total pro-
ceeds from the offer to $22.1bn
(£14.2bn).
The previous record for the world’s
largest IPO was held by the bank’s
domestic rival Industrial and
Commercial Bank of China (ICBC),
which completed a $21.9bn IPO four
years ago.
The exercise of the over-allotment,
known as a “greenshoe”, brings the
7th Floor, Centurion House,
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Beam Reach 5 Business Park,
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WHAT THE OTHER PAPERS SAY THIS MORNING
PATERNOSTER IS PUT UP FOR SALE
Paternoster, the specialist pensions
business set up by former
Prudential executive Mark Wood,
has been put up for sale, with its
original backers facing the potential
loss of more than half their £500m
equity investment. The majority of
its backers are seeking an exit from
a company that was forced to close
to new business in the depths of the
financial crisis. The company hopes
to receive initial expressions of
interest by September.
US BANKS GET BUY-BACK WINDOW
The Dodd-Frank financial reform bill
has opened a 90-day window for
banks to buy back $118bn (£76bn) in
high-cost securities, a move that
would enable them to replace the
instruments with cheaper capital but
is likely to cause tensions with regu-
lators and investors.
number of shares sold in AgBank’s
Hong Kong and Shanghai offerings to
54.79bn, increasing the original
$19.3bn raised by 15 per cent.
AgBank had already exercised a
similar option for its Hong Kong por-
tion last month.
Over-allotments are released when
demand for the shares in the after-
market is heavy. Underwriters release
the shares, set aside at the original
IPO price, to the allocated holders
who then become public stockhold-
ers. However, the bank – which began
trading on the two stock markets in
the middle of last month – had feared
that the over-allotment quota could
be clawed back by underwriters after
a weak debut. Its share price has
struggled to retain its value over the
first weeks of trading in tepid market
conditions.
Shock as Milburn
joins the coalition
POLITICS
▲
BY STEVE DINNEEN
DEPUTY Prime Minister Nick Clegg
risked tipping the coalition into all-
out war yesterday when he appointed
a third former Labour minister as an
adviser to the government.
In a shock move ultra-Blairite Alan
Milburn was named “social mobility
tsar”, in a role that appears to
encroach on cabinet minister Iain
Duncan Smith’s remit. A spokesman
for Number 10 declined to elaborate
on a prepared statement which briefly
confirmed the unpaid appointment.
The role will “look at how the poli-
cies of major institutions, the profes-
sions, business and government are
contributing towards the goal of a
more socially mobile society.”
Clegg will set out further details in
a speech on Wednesday. Milburn’s
appointment follows that of former
Labour ministers John Hutton and
MYNERS: LABOUR SHOULD RETURN TO
GOLDEN RULE
Labour should return to the “golden
rule” that current government expen-
diture should be covered by taxation,
Lord Myners has argued. He said: “I
am essentially arguing for the golden
rule which Gordon so passionately
believed in, but grew to forget.
Through the economic cycle govern-
ment expenditure should be covered
by taxation and borrowing should be
used for investment purposes.”
THOUSANDS OF AIR PASSENGERS
AWAIT ASH CLOUD COMPENSATION
Almost four months after volcanic
ash wreaked havoc for air passengers,
thousands of frustrated flyers are
still trying to claw back refunds from
airlines. BA says it has already paid
out millions of pounds in compensa-
tion to thousands of customers who
were affected.
INSURANCE
▲
BY MARION DAKERS AND OLIVER SHAH
INVESTORS in Aviva have said rival
RSA must increase its £5bn offer if it
wants to walk away with the insurer’s
property and casualty business.
Aviva immediately rejected the sur-
prise offer for its general insurance
arms in the UK, Ireland and Canada,
made in a letter from RSA chairman
John Napier last month.
There are no ongoing discussions
between the companies, but some
Aviva shareholders said they would
be open to a sale at a better valuation.
“It’s trading at a pretty big dis-
count to what you’d imagine the sum
of the parts would be, and somehow
they’ve got to find a way to release
Frank Field, who will advise on pen-
sions and poverty respectively.
Senior Tories were tight lipped last
night but are understood to be pri-
vately furious at the implication the
talent could not be found in-house.
The appointment is a clear sign
from Clegg that he is prepared to
anger the Tories in order to push
through his liberal agenda.
The appointment has also raised
the backs of senior Labour figures.
Former Deputy Prime Minister John
Prescott branded the three “collabo-
rators” and leadership hopeful Andy
Burnham said they were justifying
the coalition.
Former Labour deputy
Prime Minister John
Prescott branded
Milburn a “collaborator”
for accepting the role.
BIG HITTERS STAKE THEIR CLAIMS IN
BATTLE FOR TOP LAW JOBS
Three of Britain’s elite law firms face
leadership contests this year. The
most closely watched battle is likely
to be at Freshfields Bruckhaus
Deringer where the chief executive
Ted Burke has been challenged by
William Lawes. Partners at Clifford
Chance will elect a successor to
Stuart Popham and Linklaters will
seek a replacement for David Cheyne.
BAE MUST WAIT AS JUDGE PUTS
£30M BRIBERY PLEA DEAL AT RISK
A landmark £30 million deal to settle
corruption allegations against BAE
Systems has been delayed amid fears
that it could be thrown out in court.
The plea agreement with the Serious
Fraud Office, which brought an end
to a six-year investigation into sus-
pected bribery, is unlikely to come
before the courts before November.
that,” said Jane Coffey at Royal
London Asset Management, which
owns shares in Aviva. “There is a price
for everything,” Coffey added, but
insisted a serious offer would have to
be at a higher price. Analysts at
Merrill Lynch reckon Aviva’s general
business is worth just under £6bn.
Colin Morton, a fund manager at
Rensburg, which owns RSA shares,
said in principle he supported the
group’s pounce on Aviva. “[But] there
RSA chairman John
Napier outlined the
audacious £5bn offer
to his Aviva counter-
part Lord Sharman.
Alan Milburn oversaw the third Blair election campaign in 2005
NATWEST BANKER CLAIMS HE WAS
“TORTURED” INTO PLEADING GUILTY
OVER THEFT OF $7.3M FROM RBS
Two of the “NatWest Three” bankers
convicted in the US of stealing $7.3m
(£4.7m) from Royal Bank of Scotland
claim to have been pressured into
making guilty pleas. In a video, Mr
Mulgrew said the pressure from the
US trial process was like “torture”.
LONDON’S NEW AIRPORT COULD BE IN
BIRMINGHAM
London’s newest airport could be in
Birmingham, thanks to improved rail
links that will cut the journey time to
London down to 38 minutes. With the
coalition Government blocking
expansion at Gatwick, Heathrow and
Stansted, the West Midlands airport
says it is “the solution” to the lack of
capacity in the South East.
Birmingham Airport boss Paul Kehoe
said regional airports were a solution.
CITYA.M. 16 AUGUST 2010
are concerns... and they would have
to give us a convincing argument as
to how they could run the business
better than Aviva,” he said.
RSA has lined up BNP Paribas,
Deutsche Bank and HSBC to under-
write a £5bn rights issue to fund the
takeover. It estimates a tie-up would
save around £300m in cost synergies.
“The reason Aviva has given the
rejection is that it doesn’t want to
sell. It’s totally up to the Aviva share-
holders now, if they think this deal is
important,” said a person close to the
situation.
Aviva, the only insurer in the UK
still offering both general and life
insurance, maintains its general arm
is important for generating cash and
meeting capital requirements.
Picture: REUTERS
BOA MAY REDUCE BLACKROCK STAKE
Bank of America has concluded that
its 34 per cent share of BlackRock
isn’t a core asset and is weighing a
possible reduction of its holdings in
the influential New York asset man-
ager, said people familiar with the sit-
uation. No talks have been held about
when or how this might happen, and
Bank of America still could decide to
keep the 64.7m common and pre-
ferred shares that it owns.
APPLE MANAGER ARRESTED
An employee of Apple was arrested on
charges tied to his allegedly receiving
at least $1m (£640m) in kickbacks
from six companies in Asia that serve
as suppliers to the firm. Paul Shin
Devine, a global supply manager at
Apple, was charged with offenses
that include wire fraud, money laun-
dering and unlawful monetary trans-
actions.
CITYA.M. 16 AUGUST 2010 News 3

Goldman top brass

Former RBS direc-
tor Johnny
Cameron agreed to
not perform any
“significant influ-

get $24m windfall

ence function” at a
City firm after
accepting some
responsibility for
the bank’s woes.

and selling them at prices of between

▲
BANKING
BY OLIVER SHAH
GOLDMAN SACHS bosses including
chief executive Lloyd Blankfein crys-
tallised millions of dollars of gains
last week by cashing in stock options,
according to regulatory filings.
Blankfein booked a profit of $6.1m
(£642,000) by exercising his right to
buy nearly 90,700 shares in Goldman
at their 2000 level of $82.86 apiece
$149.49 and $152.
President Gary Cohn made $4.9m
by using more than 73,600 options,
chief financial officer David Viniar
made $4.5m on more than 67,300
options and general counsel Esta
Stecher made $1.6m. Also booking
profits were vice chairman John
Weinberg at $3.9m, co-counsel Greg
Palm at $3.2m and chief accountant
Sarah Smith with $243,900.

Banned RBS
director sets
up advice firm
He said he has lined up the firm’s
▲

BANKING
BY MARION DAKERS
A FORMER RBS director and right
hand man of Sir Fred Goodwin has
set up his own business advisory
firm, following his agreement with
the Financial Services Authority (FSA)
never to return to banking.
Johnny Cameron registered Caps
Advisory as a business on 19 July, two
months after he agreed not to per-
form any “significant influence func-
tion” at a City firm or work full-time
in financial services.
The FSA said in May it would per-
mit Cameron to take up part-time
consultancy work, provided it does
not include financial services activi-
ties. Cameron would not say whether
the watchdog included this caveat
with his new business in mind.
He said he intended to use his
experience of the financial world to
advise business heads and board
members, but stressed his work is
not connected to financial services.
“I’m not planning to return to the
City at all, and I don’t want to fan the
flames of interest. It’s just a tiny bit
of consultancy work that I hope to
do,” he told City A.M. yesterday.
first client for September, but
declined to provide further details.
He admitted in May that, as an RBS
director, he takes “a share of respon-
sibility” for the near-collapse in 2008,
and said he would not seek another
managerial role in the industry.
He headed the RBS investment
banking division from 2001 until the
bank’s government bailout seven
years later.
The FSA did not find that Cameron
made any regulatory breaches, and
he did not admit any impropriety.
However, the watchdog said at the
time: “On the basis of the informa-
tion available to it, the FSA believes
that Cameron would not meet its
current standards for approval for a
significant influence function.”
Since leaving RBS in January 2009,
Cameron has attempted several
returns to the City. The watchdog
blocked his efforts to take up a role at
advisory firm Greenhill while its
investigation was ongoing. He left
headhunter Odgers Berndtson after
UK Financial Investments, which
manages the government’s 83 per
cent stake in RBS, withdrew a lucra-
tive contract it held with the firm.

Last chance for BAA and Unite

to prevent bank holiday strikes
▲

AVIATION
BOSSES from airport operator BAA
and the Unite union are meeting
today in a last-ditch attempt to pre-
vent the closure of six airports over
the August bank holiday weekend.
The meeting, at conciliation service
Acas, is likely to be the last chance the
two sides will have to come to an
agreement over pay and prevent the
proposed industrial action, which
could affect more than a million pas-
sengers next weekend.
Unite, which represents more than
6,000 BAA staff, wants an improve-
ment on the one per cent pay increase
offer for 2010, which it describes as an
effective pay cut given the current rate
of inflation. Three quarters of BAA
members have agreed to industrial
action, according to Unite.
Unite chief Tony Woodley said yes-
terday the union’s demands were
not unreasonable and he had no
doubt an improved offer could be
made by the airline.
He added that the union will do
its best to avoid strike action.
Airports owned by BAA, which
include Heathrow, Stansted, Glasgow
and Edinburgh, have not been closed
by strike action before, although a
walkout was narrowly avoided in
2002 by an improved offer to workers.
CITYA.M. 16 AUGUST 2010
Bank heads
towards a rift
on way ahead
▲
ECONOMICS
BY JULIET SAMUEL
THE Bank of England is heading
towards a rift over what to do about
the slowing recovery and rising
inflation, according to economists.
Analysts at Investec Economics
expect the release of this week’s min-
utes of the Monetary Policy
Committee’s (MPC) last meeting to
reveal that some members now want
to increase the stock of quantitative
easing (QE) to further stimulate the
economy.
Following the Bank’s inflation
report, Investec Economics’ David
Page forecasts a split: “We also
expect the committee to record its
first three-way split in two years,
expecting two members to vote for
further QE and Andrew Sentance to
continue to press for a bank rate
rise.”
Committee members that analysts
expect to lead the charge towards
more QE include David Miles, Adam
Posen and Paul Tucker. But even if
some of the committee does not yet
vote for further stimulus, analysts
expect the minutes to reveal a grow-
ing divergence of opinion, with RBS
noting the increasingly “agnostic
tone of recent MPC speeches on poli-
cy risks”.
Fathom Consulting’s Danny Gabay
says: “Transparency is always
thought to be a good thing but some-
times it makes it clear there’s an
awful lot of confusion.”
Regarding the possibility of a
three-way split, he added: “It would
explain some of the issues surround-
ing the inflation report. It would
obviously indicate that the MPC is
caught between a rock and a hard
place and really needs inflation to
come down sooner rather than
later.”
King insisted last week that per-
sistently above-target inflation is due
to “temporary price shocks”, but
some view the Bank’s prediction on
inflation as overly optimistic.
News 5
Mervyn King is presiding over a widening gulf of opinion at the Bank of England Picture: REUTERS
DO YOU EXPECT THE MONETARY POLICY COMMITTEE’S MINUTES TO
SHOW SOME MEMBERS VOTING FOR MORE STIMULUS? Interviews by Juliet Samuel
DAVID BUIK | JAMES HUGHES |
“ “
BGC PARTNERS CMC MARKETS
I wouldn’t be at all surprised if all nine The fact that the US has now had to do
members voted for an increase in quantitative easing more – not necessarily normal quantitative easing, but
(QE) by October. In fact I’m expecting it. People a form of stimulus – means that a lot of people think it’s
accuse me of heresy and say I should be strung up inevitable that the UK and Europe will have to go the
” ”
but I don’t care if inflation gets to 4 per cent because same way. If the vote started to move that way, it
we have got such a brittle economy. would not be too much of a surpise.
MICHAEL SAUNDERS | CITIGROUP
“
Last week’s inflation report did not imply that further quantitative easing (QE) is needed. If the MPC did want to add extra
”
stimulus then QE may not be the most effective way. They’re able to add stimulus simply by forecasting that inflation will be below tar-
get, which allows them to give the signal of low rates for an extended period.
 6 News CITYA.M. 16 AUGUST 2010

KNOC considers hostile bid

for Dana after offer rejected
work in progress”. KNOC, but the firm is tipped to
▲

M&A
BY MARION DAKERS
THE KOREA National Oil Company
(KNOC) is considering launching a
hostile takeover of Aberdeen-based oil
firm Dana Petroleum as early as this
week, it emerged yesterday.
Dana rejected a friendly bid from
the firm last week after months of
talks, saying the £18 per share offer
“failed to recognise the value of the
company’s recent developments and
KNOC had also refused to sign a
non-disclosure agreement that would
have banned it from purchasing extra
Dana shares during the takeover peri-
od. This now leaves the group free to
bulk up its stake aggressively.
“It’s definitely a live option, but at
the same time a decision has not
been made yet,” said a KNOC
spokesperson yesterday.
He would not comment on the
timescale for any action planned by
pounce as early as this morning.
The group has courted Dana’s
main shareholders in an attempt to
smooth the path for a takeover. It has
the support of a number of investors,
notably Schroders, which has urged
Dana to consider a bid at the level of
£18 a share.
Meanwhile, energy firms Talisman,
Nexen and ONGC have emerged as
potential rivals in the battle to take
control of Dana.

Cairn Energy chief executive Sir Bill Gammell is in line for a windfall from the Indian sale

Vedanta seals
£5bn buyout
of Cairn India
Shares in the companies, both FTSE
▲

ENERGY
BY OLIVER SHAH
CAIRN ENERGY is this morning
poised to announce the sale of a
majority stake in its Indian venture to
Vedanta Resources, the precious met-
als miner, for around £5bn.
Lawyers were last night scrambling
to finalise the paperwork for
Vedanta’s purchase of 51 per cent of
Cairn India. Cairn is expected to
retain an 11 per cent stake, with the
rest held by the Indian government
and Malaysia’s Petronas.
Cairn shareholders are in for a
multi-billion pound windfall, most
likely through a special dividend. The
remainder of the transaction cash
will be used to fund Cairn’s drilling
project off the coast of Greenland.
The deal marks the first foray into
energy for Vedanta’s billionaire con-
troller Anil Agarwal. Vedanta spe-
cialises in aluminium, copper and
zinc extraction but will now gain
access to Cairn’s lucrative oil and gas
fields in Rajasthan.
100 constituents, moved in opposite
directions on Friday as Cairn
investors hoped for a payout and
Vedanta holders fretted about its bal-
ance sheet. Cairn stock rose 3.4 per
cent to 468.3p while Vedanta stock
fell 5.9 per cent to £20.53.
However, India’s authorities will
scrutinise the proposal closely. The
government owns a stake through
state-controlled Oil and Natural Gas
Corp and is irked at Vedanta’s lack of
direct experience in the sector,
according to local media reports.
ANALYSIS l Cairn Energy 468.30
500 p 13 Aug
460
420
380
17 May 7 Jun 25 Jun 15 Jul 4 Aug

Bold move raises issues

CAIRN’S Indian assets are certainly
attractive. The sites bought for a
mere $7m (£4.5m) from Shell in
1997 now trade on the Mumbai
exchange at a market value of
$14bn. Cairn’s flagship oilfields in
Rajasthan are predicted to churn
out 90,000 barrels a day in 2011, ris-
ing to 125,000 barrels the year after.
Vedanta is not the first resources
group to set its eye on the diversify-
ing properties of fuel exploration.
BHP Billiton derives a decent chunk
of its turnover from oil, and Brazil’s
Vale is also looking to take stakes in
energy assets. The aim is to flatten
out revenues by hedging against
high fuel costs during bull phases.
But Vedanta shareholders have
every reason to feel nervous. The
company is halfway through a mon-
ster capex programme and, after
the $1.3bn purchase of Anglo Zinc
in May, would probably need to
raise either fresh debt or equity to
fund the deal. Although it has
$7.2bn on its balance sheet,
Vedanta’s existing commitments
mean it is far from cash-rich.
Until the market has clarity on
price and funding, expect more
pressure on Vedanta’s shares.
BOTTOMLINE
Analysis by Oliver Shah
CITYA.M. 16 AUGUST 2010 Focus on Gulf oil spill 7

President Obama

Transocean hopes the photo-

call with his
daughter will help
encourage tourism
to the oil-hit Gulf
coast.

payouton hold Picture: GETTY

after oil spill

and wanton in their attempts to clean
▲

OIL
BY RACHEL STEVENSON up oil that gushed into and onto
Alabama’s waters and shores,” the

Obama hopes publicity stunt will allay

TRANSOCEAN, the company that suit alleges.
leased the rig at the centre of the oil Transocean’s dividend plan has
disaster in the Gulf of Mexico, has drawn sharp criticism in the US.
been blocked from paying sharehold- Eleven people were killed in an explo-

Gulf oil fears as BP suspends seal plans

ers a $1bn (£640.7m) dividend.
A Swiss regulatory body has reject-
ed plans by Transocean, which leased
the Deepwater Horizon rig from BP,
to pay shareholders a dividend of 82
cents per share because of its out-
standing legal exposure to the spill.
Transocean had planned to pay
shareholders in four instalments, but
the Commercial Register of the
Canton of Zug, a region in northern
Switzerland where Transocean is
headquartered, has put a halt to this
while lawsuits against the company
are pending.  responsibility for the cleanup of the
On Friday, the US state of Alabama
joined the list of those pursuing
Transocean and others involved in
the rig for damages.
“The defendants were negligent
sion on the Deepwater rig, which
later sank, setting off an oil spill that
caused economic and environmental
damage along the Gulf coast estimat-
ed in the billions of dollars.
Several senators have asked
Transocean to postpone making a
payout until the company’s liabilities
have been evaluated.
Transocean says the payment to
shareholders will not affect its legal
obligations.
Under pressure from the Obama
administration, BP, which has taken
oil spill, cancelled its dividend pay-
outs and has agreed to set aside
$20bn to help pay for claims.
Transocean says it will appeal the
Commercial Register’s decision.
BP IN CRISIS
BY RACHEL STEVENSON
US PRESIDENT Barack Obama and
his family visited Florida’s Gulf coast
this weekend as part of a drive to
encourage tourism to the region
blighted by the Deepwater Horizon
oil spill.
Speaking before an afternoon dip
with his daughter, Obama said his
administration remains committed
to ensuring a full clean-up is carried
out.  suffered a setback.
“I’ll not be satisfied until the envi-
ronment has been restored, no mat-
ter how long it takes,” Obama said in
Panama City Beach, Florida.
“We’re going to continue to moni-
tor and remove any oil that reaches
the surface.”
Beaches all along the Gulf coast are
clean and open for business and the
seafood is safe, he added.
The trip came as BP’s attempts to
permanently seal off the well that
caused the devastating oil leak have
Up to 1,000 barrels of oil are
thought to remain trapped in the
well and US officials fear new leaks
may form when the company pumps
in more mud and cement for the
final plug.
BP has had to suspend work on the
relief well and bottom-kill procedure
until further tests are completed.
The firm is expected to finish its
analysis tomorrow and says its driller
rig is on standby to carry out the
work.

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 The Capitalist
8 CITYA.M. 16 AUGUST 2010
CITY GIRLS
GET A TASTE
OF FIGHT
CLUB SCENE
REPORTS may still be rife over sexual dis-
crimination in the City, but we ladies cer-
tainly aren’t ones to take such inequalities
lying down. The Capitalist has long been
intrigued by the growing popularity of
white collar boxing among stressed finan-
cial workers in the Square Mile – and now,
it appears the sport is catching on among
the fairer sex as well.
Macmillan Cancer Support is currently
looking for City workers to enter for its
charity boxing tournament on 14 October,
where eight fighters will go up against
one another in the ring in front of a
crowd of up to 300 people, including cur-
rent and former world heavyweight cham-
pions David “Haymaker” Haye and Lloyd
“Ragamuffin” Honeyghan.
“This is the first tournament we’ve
done and we’re so keen to get the City
involved, as white collar boxing is such an
up-and-coming sport here,” an excited
organiser tells me. “We’ve also teamed up
with some gyms and one of them suggest-
ed that girls are getting more and more
into it, so we’re currently considering the
possibility of opening up the event to
ladies too, subject to demand…”
Apparently, the first female white collar
boxing event in the City was held just this
year, but it’s expanding at a rapid rate – a
touch of the old “anything they can do,
we can do better” mentality that has
served successful City girls so well over
the years, no doubt. Interested parties can
call 07828 135589 to register their interest.
OLYMPIC EFFORT
Lucky K&L Gates lawyers are to be allowed
to take paid time off work in order to vol-
unteer at the Olympics, according to an
internal memo at the firm.
If the happy K&L lawyers make it
through the application process, they’ll
get to take part for six consecutive days, as
well as three days’ training. Rival firms’
HR departments, take note...
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
BILL OF THE WEEK
WEST London gastro pub Paradise By
Way of Kensal Green is clearly onto a win-
ner with its new ruse – a private karaoke
room for well-oiled customers to sing their
Hilary Swank shows hearts out.
the girls how it’s done This group ended up hogging the room
in Million Dollar for the whole night, paying a hefty £600
Baby, above for the privilege. They fortified themselves
for the singing with a meaty round of cote
de boeuf, rack of lamb and poussin, as
well as chocolate mousse and sticky tof-
fee pudding, before getting on to the hard
liquor.
They guzzled numerous bottles of
Laurent Perrier rosé champagne during
the singing, along with bellini, negroni
and mohito cocktails, two bottles of Grey
Goose vodka and another of Tanqueray
gin.
After that little lot – which pushed
their bill up to £2,138.75 – even the
most tone-deaf of our revellers were
belting out the classics with aplomb.
CITYA.M. 16 AUGUST 2010
Bankers warn
of brain drain
as rules loom
BANKING
▲
BY OLIVER SHAH
BANKERS have renewed warnings of a
talent exodus from the UK as the
financial watchdog begins consulting
the City on a tough set of bonus and
pay rules drafted in Europe.
The Financial Services Authority
(FSA) is engaging with institutions
and shareholders over plans to cap
the upfront cash portion of large
rewards at 20 per cent and stagger
the remainder over five years.
Although the EU standards will not
come into effect until January, most
UK lenders have already tightened
their remuneration policies in line
with demands set out by the G20.
After the bumper second quarter
earnings season prompted a fresh
flurry of criticism of pay levels,
British Bankers’ Association chief
executive Angela Knight warned that
skilled workers would flee for
America and Asia.
“When you consider the extraordi-
nary commentary we saw a fortnight
British Bankers’
Association boss Angela
Knight accused policy-
makers of “not
recognising reality”
BT has signed up as few as 60,000
to its sports package, say insiders
MEDIA
▲
BY STEVE DINNEEN
BT’S offering of Sky Sports 1 and 2
was hailed as a lynch-pin of the
firm’s transformation into a big
player in the pay-TV market.
But industry insiders estimate
that it has only signed up around
60,000 sports customers, despite
spending tens of millions promot-
ing the service.
BT Vision has struggled to com-
pete with the might of Sky, with
just 481,000 subscribers compared
to Sky’s 9.8m.
BT hopes its sports package,
which allows customers to watch
Dyke snubs top job at Channel Five
MEDIA
▲
BY STEVE DINNEEN
GREG Dyke has snubbed a move to
Channel Five, which is undergoing a
major shake-up under new owner
Richard Desmond, according to
industry sources.
City A.M. understands Desmond
had sounded out Dyke for the top
job after chief executive Dawn Airey
ago in which the return to profitabil-
ity [of banks] seemed to be a bad
thing, you realise policymakers are
not recognising reality,” she said.
“Around the world, the US shows no
inclination to follow what we’re
doing and the Far East is just getting
on with the job. Either we pay the
going rate or we lose the business.”
Barclays and Standard Chartered
have also hinted at plans to move
their domiciles given chancellor
George Osborne’s levy on bank bal-
ance sheets, to be introduced at the
same time as the EU’s pay strictures.
Barclays chairman Marcus Agius
said at the time of the bank’s interim
numbers: “We have planned careful-
ly… I’m sure all banks are considering
what their options are.”
Standard Chartered chief executive
Peter Sands said: “There is no doubt
the arguments for London have weak-
ened relative to other centres… We’ve
been looking at it more because we’re
asked about it more by our investors.”
Sands particularly criticised
Osborne’s levy as “complicated to
implement”. He suggested increased
corporation tax would be a simpler
and more effective tool.
HSBC, run by Michael Geoghegan,
yesterday confirmed it would hold its
three-yearly review of its domicile in
2011 as scheduled. But a source said
there were no plans to leave the UK.
Premier League games for as little
as £6.99 a month, will help it
redress the balance.
Sky was forced to wholesale its
sports channels to rivals at a regulat-
ed price by industry watchdog
Ofcom. The price is fixed to the level
Sky charges its own customers.
But in an audacious move, Sky
wrongfooted BT on the eve of its
sports launch by raising its con-
sumer prices, meaning the former
state telecoms provider will make a
loss on every customer who signs
up to the service.
However, analyst Ian Watt from
Enders Analysis says the figures are
not a disaster for BT. He told City
announced she would quit the
broadcaster.
But Dyke, who helped launch Five
in 1997, told the Express owner he is
not interested in the position,
according to the source.
Desmond is in no rush to fill the
position, with Airey remaining for
“a few months” to oversee the tran-
sition before enabling a clause in
her contract that will see her take a
Standard Chartered boss Peter Sands
(top) and HSBC’s Michael Geoghegan
Pictures: REUTERS, GETTY
A.M.: “We never expected them to
sign up droves of new customers.
“The package has only been avail-
able for a month so this is perfectly
respectable.
“This is first and foremost a
defensive move. It is shoring up its
position, making sure it doesn’t
keep losing customers to Sky. I
don’t think it realistically expected
to take many of Sky’s existing sub-
scribers.
“BT still isn’t in a position to
compete with Sky. HD is the main
reason at the moment, a massive
selling point for Sky. And 3D looks
like it will become much more
mainstream soon.”
senior role at former Five owner
Create sPrint sDeliver
RTL.
Industry analyst Claire Enders
told City A.M. she expects Desmond
to appoint a new chief executive
from within his media empire.
Airey will be joined on the way
out of the firm by six other directors
from the nine-strong board. Up to
80 jobs will also go from the work-
force of 300.
News 9
Carlyle aims
for £350m
from Britax
▲
M&A
BY OLIVER SHAH
PRIVATE equity firm Carlyle Group
has appointed investment bank NM
Rothschild to sell Britax, the maker
of child car seats, for up to £350m.
Carlyle is understood to have put
the business on the block after
receiving interest from rival private
equity firms and trade buyers. A sale
at its target price would net Carlyle’s
dealmakers a profit of £120m.
Britax has grown rapidly since it
was taken over by the US buyout
house for £230m five years ago. Sales
of brands including Romer and Safe
n Sound expanded by 52 per cent to
£183m between 2004 and 2008,
boosted in part by tighter regulations
on in-car safety for minors in devel-
oping countries.
Based in Chertsey, Surrey, Britax
began life making automotive safety
equipment in 1983 before narrowing
its focus on childcare safety goods in
the 1970s. It has manufacturing
bases in North America, Australia
and Germany as well as the UK.
Britax employs 1,000 people globally
and commands a 40 per cent market
share in the UK and Germany.
The company’s management, led
by Karl Kahofer, will be in for a wind-
fall of tens of millions of pounds
should a transaction take place.
Bosses have a 15 per cent stake.
Carlyle has carried out a number
of deals this year, selling Multiplan in
the US, teaming up with TPG to buy
Australia’s Healthscope and taking a
stake in Brazil’s Grupo Qualicorp.
Managed Print Services
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Production
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 10 News
GE looks to move in
7 L UHG R I on UK bank sector
V W D Q G LQ J
▲
BANKING
BY ALAIN TOLHURST
US CONGLOMERATE General
Electric (GE) is planning to launch
LQ
an internet bank in the UK.
The financial arm of the firm, GE
Capital, has already set up an inter-
net bank in Germany, titled GE
Direkt, and is hoping to join the
ranks of the newcomers on the UK
banking scene within 18 months.
US-backed Metro Bank opened its
first branch in the UK last month
and Lloyd’s of London chairman
Lord Levene and City grandee Sir
David Walker are to front another
new High Street venture.
Terms and Conditions apply. Subject to status. The Platinum Charge Card is offered by American Express ® Services Europe Limited. Registered Offi ce: Belgrave House, 76 Buckingham Palace Road, London SW1W 9AX, United Kingdom. Registered in England and Wales with Company Number 1833139.
Russian grain ban fuels fears of food price inflation
the government had banned grain tonnes to cover domestic consump-
▲
COMMODITIES
exports until 31 December. Putin said tion. First deputy Prime Minister
CONCERNS over sharply rising food the restriction could be extended into Viktor Zubkov stressed that the gov-
prices were stoked yesterday as next year if the harvest was bad. ernment had to balance the interests
Russia, the world’s third largest “We must not allow an increase in of grain traders with the need to
wheat seller, brought in an emer- domestic prices and must preserve maintain stability on the domestic
gency ban on grain exports. the headcount of our cattle,” the food market. He said: “We are contin-
Experts said the price of bread Russian PM said. ually monitoring and analysing
could shoot up by ten per cent after Russia harvested 97m tonnes of grain, feed and seed supplies on the
Prime Minister Vladimir Putin said grain in 2009, and it needs 78m domestic market.”
CITY MOVES | WHO’S SWITCHING JOBS
VAM Funds
Sacker & Partners The specialist investment boutique has
The pensions law firm has promoted Emily hired Linda McLaren as business devel-
Forrest and Zoë Lynch to partner and Arshad opment manager for Asia.
Khan to associate director. McLaren joins from Standard Bank,
Forrest has been at the firm since 2002, where she has been business develop-
while Lynch joined in 1998. ment manager for southern Europe and
Khan, pictured, is a member of the dispute Africa since 2007.
resolution unit, including trustee applications for She has over a decade of experience
directions, rectification actions and claims for in the financial services sector and
professional negligence. began her career with Royal Skandia
Life Assurance.
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
But GE’s plans, tentatively
dubbed GE Direct, will be the first
online bank launched in the UK
since the financial crisis.
The Financial Services
Authority (FSA) tightened the
rules regulating internet banks
two years ago, following the col-
lapse of Icelandic internet banks
such as Icesave, which had
300,000 customers in the UK with
deposits of over £4bn.
The incident led to a diplomatic
crisis between Britain, Holland and
Iceland over attempts to reclaim
deposited funds.
GE is thought to be looking at
the possibility of rolling out similar
NEWS | IN BRIEF
C Hoare clocks up record profits
Private bank C Hoare & Co reported a
jump in profits of 62 per cent last year to
£24m. The bank’s deposits rocketed 13
per cent to £1.9bn as it bounced back
strongly from the financial crisis.
Chairman Lord Wilson of Dinton said:
“As a policy matter the bank chooses not
to enter into a bidding war for deposits,
preferring to offer security and superior
service to customers.”
Edited by Victoria Bates
CLS Group
The multi-currency cash settlement
group has appointed Richard Kerschner
as head of strategic initiatives, report-
ing to chief executive Alan Bozian.
Kerschner was most recently general
counsel at NYMEX Holdings and its
exchange subsidiary, the New York
Mercantile Exchange, until its acquisi-
tion by the CME Group. He joined the
group in 2004 and has also been head
of corporate governance.
CITYA.M. 16 AUGUST 2010
operations across Europe as GE
Capital looks to diversify its fund-
ing base.
The firm specialises in factoring,
paying companies up front for con-
tracts that will pay out over time,
such as a recent deal which will see
Jaguar Land Rover receive £170m
through this structure.
GE Capital utilised the AAA cred-
it rating of its parent company to
borrow money at very low interest
rates, but the financial crisis saw
GE’s credit rating slip and factoring
became a more expensive method
of revenue for the division.
GE was unavailable for comment
last night.
The results are the first to be reported
since the appointment of Jeremy
Marshall last year as chief executive.
The former Credit Suisse banker took
the reins from Alexander Hoare, a
descendent of the bank’s original founder
who formed the institution 340 years
ago. The bank is renowned for its safety-
first approach and caused a stir in the
City when it ditched UK gilts in favour of
a deposit with the Bank of England.
in association with
Alpari
Rashad Hussain has joined the forex
trading firm as global head of market-
ing in the UK.
Hussain has over ten years of mar-
keting experience, including several
years in the forex and commodities
market. He has formerly held positions
as head of marketing at both ODL
Markets and One Financial, as well as a
stint spent in the media sector at News
International.
+44 (0)20 7557 7245
morganmckinley.com
 CITYA.M. 16 AUGUST 2010
TIMES OF STRESS: HOW FIRMS ARE FARING
ANALYSIS l Firms with significant or critical problems
2500 2,404
2,209
2000 1,901
1,529
1500
1,104
1000
500
0 lems last month. The number repre-
Jan Feb
ANALYSIS l London-wide firms in distress by sector in July
%
Authorised in the United Kingdom by the Financial Services Authority under the Payment Services Regulations 2010 (reference number 415532) for the provision of payment services.
Rok chief dismisses
Connaught parallel
▲
CONSTRUCTION
BY ALAIN TOLHURST
THE chief executive of beleaguered
construction firm Rok hit back at
the weekend at comparisons
between his company and social
housing group Connaught, which
has seen its share price collapse in
recent weeks after a shock profits
warning.
Rok boss Garvis Snook told a
Sunday newspaper that the two
firms’ respective woes are “two
totally different issues”, adding
that his own company’s problems
are confined to just one part of the
business.
His comments come despite fore-
casts that Rok will now be forced to
post a dip into the red over the half
year after making provisions to
cover irregularities in its account-
News 11
Central London
City
Property price slide starts to
feed through to companies
1,886 1.831
1,750
1,518 1,616 1,485
1,435
1,278
1,060
and developers suffered serious prob- in a year in July, according to the
Royal Institution of Chartered
Mar Apr May Jun Jul sents an increase of 14 per cent on Surveyors.
the previous period. The Nationwide Building Society
for Within the City, 101 property-based recorded an average price fall of 0.5
outfits were operating on the edge, per cent, while Hometrack said prices
Automotive Recruitment
up four per cent from June’s number. dropped 0.1 per cent.
Construction Advertising The figures will spark concerns Across Greater London, the num-
BY OLIVER SHAH
I.T. Professional services that a second slowdown in residen- ber of companies showing signs of
RENEWED weakness in the housing tial and commercial property prices significant stress fell slightly. But the
Engineering Other B2B services market pushed more real estate serv- is beginning to hit corporates. number of financial services compa-
Print & Packaging Retail ices companies to the brink in July, Home values fell for the first time nies struggling to finance themselves
according to the latest monthly City more than doubled to 263.
Manufacturing Wholesale A.M./Begbies Traynor health monitor Nick Hood, a partner Nick Hood, partner at Begbies
Financial Services Transport for the Square Mile. at Begbies Traynor, Traynor, said: “With the impact of
As economists look to September public sector cuts still to be felt and
Property Services Others as the “crunch time” for Britain’s said companies in consumer confidence falling away,
struggling property sector, our survey London are in for the Bank of England’s prediction of a
Hire/rental Services
shows 945 firms across London tough times ahead ‘choppy’ recovery is likely to mean
Source: Begbies Traynor
including estate agents, architects tough times ahead for London.”
We’l l help you get your hand s
ing. The company was previously ago, but the companies it bought
in to wn .
on so me of the ho tte st tic ke ts
expected to make £3m over the first out did not adopt its own account-
six months of the year. ing standards and software until
A week ago shares in Rok almost
halved in value in a single day after
October last year.
Snook hired BDO Stoy Hayward ame r ican exp ress .co.uk /po tent ial
the group admitted that an to conduct a thorough appraisal of
accounting report had found finan-
cial irregularities in its plumbing,
the plumbing division after an
internal investigation shed light on
or se ar c h ‘p ot en t ia l’
heating and electrical arm. Finance the fact that it was making losses
director Ashley Martin was subse- rather than a healthy margin.
quently suspended and is now
thought unlikely to return to work
with the group.
Analysts are confident that if the
ANALYSIS l ROK
35
p
16.75
13 Aug Realise
problems are contained within just
one facet of the company, shares 30
the TM
will bounce back, but they warn
that it will take several sets of solid 25 potential
results to restore confidence in Rok
– particularly after the escalating 20
problems at Connaught.
Rok had expanded into other
construction services four years 17 May 7 Jun 25 Jun 15 Jul 4 Aug
 12 News CITYA.M. 16 AUGUST 2010

Investors fail
to see light as
trading drops Trading volumes have
plunged since 2002 as
the economy splutters
▲

MARKETS
BY JOHN DUNNE
INVESTOR confidence has crumbled
to its lowest ebb for eight years,
according to a bleak market analysis
released today.
The grim data shows the value of
shares traded this year has plummet-
ed as the UK’s recovery from reces-
sion remains on a knife edge.
each year over the last ten years, Picture: Micha
meaning 2010 is still below both Theiner/City A.M.
recent averages.
It is even below 2009 when the UK
was in the grip of recession.
Meanwhile the Treasury has also
been hit as 2010 tax on share trades
ANALYST VIEWS? WHAT DOES THE LACK OF ACTIVITY IN THE
will fall an estimated £1.1bn on 2007.
Equiniti chief executive Wayne
MARKET MEAN FOR THE ECONOMY AS A WHOLE? Interviews by John Dunne
Story said: “Britain’s ultimately
unsustainable economic boom was JEREMY BATSTONE-CARR | RICHARD HUNTER |

The turbulence from the economic
crisis triggered by the collapse of
Lehman Brothers in 2008 has also
produced the most sustained market
volatility in 26 years, according to the
research from equity trading special-
reflected in stock market activity too.
The euphoria of the five-year bull
market up to its peak in June 2007
brought a massive increase in share
trading volumes, far ahead of any-
thing the UK had ever seen before.
“ “
CHARLES STANLEY HARGREAVES LANSDOWN
These figures represent very accurately There are some seasonally adjusted lighter
what has been going on in the market. Recent econom- volumes to be taken into account. But this should be
ic data that has been issued showing an upturn is a coupled with the risk aversion that some investors are
false dawn. Investor confidence is very weak and I do showing as many are investing in things like gold. The

ist Equiniti.
This year £2.5 trillion of UK equities
will be traded on current trends –
almost two fifths below the peak in
2007 when £4 trillion changed hands.
The value of shares traded in 2010
“There has been a dramatic loss of
energy in the stock markets since
then. Today, the markets are still in
post-Lehmans shock.”
The research also revealed that in
cash terms more shares changed
” ”
not accept that things are getting that much better. fact is that there are some very wary investors out
Trading has been poor and the markets are not there and trading is slow as fears over the
being fooled. economy remain.
ALAN CLARKE | BNP PARIBAS

“
relative to the value of UK plc is the hands in the five years to the end of
lowest since 2002. 2007 than in the previous fifteen

”
On average shares worth 1.56 times years since 1988 put together as the I suspect the lower volumes of trades reflect heightened risk aversion coupled with a significant degree of uncertainty with
the value of the market were traded markets enjoyed a boom. the economy at the moment.

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CITYA.M. 16 AUGUST 2010 News 13

Medium-term UK gilts outlook remains rosy

from maturing mortgage-backed
securities in longer term government
bonds. While this had been touted as
a potential option for the Fed, most
thought it would save some fire
power for later in the year and merely
downgrade its economic assessments.
Fourteen hours later, I attended the
CITY COMMENT press conference for the Bank’s
Inflation Report, where policymakers
LOUISA BOJESEN echoed the US on worries over the
strength of the economic recovery.
the door open for further policy eas-
ing if the economy weakens consider-
ably from here.
I asked Mervyn King, the Bank’s
governor, if he was worried that the
stimulus measures weren’t translat-
ing into sustainable growth and jobs.
He answered that that would be to
exaggerate concerns, adding: “Clearly
we have to look carefully at what is
happening in the short term too, and
if it is necessary to respond, then we
ity that has been created. What we
have seen so far in terms of the actual
data has been bang in line with the
average of these financial crises in the
past. So I think it is much too soon to
say that we are struggling to see a
recovery.”
Nevertheless, equity markets were
spooked by the central bank activity.
In the bond markets, the yield on the
US two-year Treasury note hit a
record low, and the yield on the
the outlook for UK gilts? Sam Hill, a
fixed income strategist at RBC Capital
Markets, told me that in the short
term, the gilt market looks vulnera-
ble to a setback, but the medium
term should still present some good
opportunities. Hill pointed out that
after the latest gilt auction, the debt
management office has now raised
half the money it needs so far, which
means it has covered half of the UK
deficit in the first third of this year.

I
N WHAT was one of the most
important Fed meetings of recent
times last week, the US central
bank moved to support lower bor-
rowing costs by reinvesting funds
The Bank cut its growth forecast to
just over three per cent in two years’
time (down from 3.6 per cent) and
said inflation would remain above
target until the end of 2011. It also left
are quite ready to do that. But the
experience of all financial crises sug-
gests that a typical recovery is rela-
tively slow and sluggish. And it takes
a long time to use up the spare capac-
benchmark 10-year note in both the
US and Germany hit multi-month
lows as well.
So with people seeking cover in
lower-risk government debt, what is
From a supply point of view, accord-
ing to Hill, the outlook for the gilt
market is still positive for the rest of
the year.
Louisa Bojesen is an anchor on CNBC

NEWS | IN BRIEF
CBI warns on energy planning delays
Plans to hand powers to ministers to
approve major energy infrastructure projects
is making investors nervous about commit-
ting to large-scale building projects, accord-
ing to the CBI. The decision to replace the
independent Infrastructure Planning
Commission with a Major Infrastructure
Unit has been met with concern by the busi-
ness group, which has identified applications
for 37 power plants, inherited from the pre-
vious government, that are still awaiting
ministerial approval. The CBI wants the gov-
ernment to clear the delayed applications in
six months in order to give investors confi-
dence the new planning system will be able
to deliver timely decisions. Dr Neil Bentley,
the CBI’s director of business environment,
said: “We need a planning system that
encourages, not deters investment.”

London
Betfair, led by non-executive chairman Edward Wray, is to launch a trading platform Picture: Micha Theiner/City A.M.
Night Hike
Friday 17 September 2010
Betfair to launch its
own trading system
FINANCIAL SERVICES exposure to a company without American exchange operator
▲

BY MARION DAKERS owning the shares. NYSE Euronext launched a London

ONLINE gambling group Betfair is
gearing up to launch a trading plat-
form in London later this year,
becoming the latest in a line of
companies to compete with the
London Stock Exchange.
Following approval from the FSA
at the end of July, developers are
working to complete the platform
based on Betfair’s existing gam-
bling programmes, funded by start-
up capital from Betfair. The
multilateral trading facility will
allow investors to exchange con-
tracts for difference, which provide
Goldman Sachs recently bought
a 12.5 per cent stake in the LMAX
venture for an undisclosed sum,
though Betfair remains the majori-
ty owner.
Betfair first moved into financial
trading in 2008, when it launched
a spin-off website called Tradefair,
parts of which have been sub-
sumed under the LMAX name.
The platform will be one of a
growing number of junior
exchanges in the City that have
sprung up since pan-European reg-
ulation opened the market to com-
petition in 2007.
branch in July, aimed at overseas
investors who would benefit from
a “much broader, more diverse and
more liquid investor pool than on See London in
many of our competitors”.
Multilateral trading facilities a different
such as Chi-X and BATS have flour- light...
ished in recent years as profits at How far will you go to
the mainstream exchange strug- change the lives of people
gled. The LSE cut 13 per cent of its
staff in May in a bid to minimise affected by cancer?
costs. Walk 10 or 20 miles
The group took a majority share
in the Turquoise multilateral trad- through late night London.
ing facility in February, alongside
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Barclays, Nomura and JP Morgan.
to iconic buildings.

Consumer confidence dips with age www.maggiescentres.org/nighthike

Register today or call 0300 123 1801
▲

CONSUMER months’ time. Confidence then fundamentals point in the oppo-

RESEARCH has shown a yawning
gap in the effect of the recent aus-
terity Budget on confidence levels
among young and old people.
PricewaterhouseCoopers (PwC)
found 30 per cent of 18-24 year-olds
think they will be better off in 12
dips on a declining scale, turning
negative among 35-44 year-olds and
bottoming out in the 55-64 age
bracket, where 47 per cent of peo-
ple believe they will be worse off in
a year’s time.
Inge Cajot, a director at PwC,
said: “Ironically, the medium term
site direction.
“Younger consumers continue to
be optimistic about their future
disposable income but in reality it
is under increasing pressure due to
rising unemployment, lower pay Maggie Keswick Jencks Cancer Caring Centres Trust
(Maggie’s) is a registered charity, No. SC024414 A partnership between Maggie’s and Open City
rises and potentially higher stu-
dent fees to face.”
 14 News
Britain should support banks, not vilify them
CITY COMMENT
NICK ANSTEE
A
S fears over a double-dip reces-
sion have intensified in the
past week, with economic data
in the UK, US and elsewhere
suggesting the global recovery is slow-
AA and Saga owner
racks up £500m loss
PRIVATE EQUITY
▲
BY RACHEL STEVENSON
THE OWNER of the AA and Saga has
revealed huge annual losses thanks to
the cost of servicing its massive pri-
vate equity debts.
Accounts filed at Companies House
show Acromas posted a pre-tax loss of
£529m for the year to 31 January,
with operating profits of £183.5m
dwarfed by interest payments of
£705m.
The company’s net debt stood at
£6.4bn, an increase of 3.5 per cent on
the previous year. A consortium of
ing, many commentators have again
turned their attention to the banks.
Even as the banks return to profit,
the argument goes, they are con-
straining growth by reducing lending
to businesses and employing exces-
sively tight credit conditions.
But this picture differs significant-
ly from the post-crisis reality. That is
why I was glad to hear Bank of
England governor Mervyn King
recently acknowledge: “Banks are not
being awkward or bloody minded in
their attitude, they are facing higher
costs of funding... it is not a question
of blaming people, this is a direct con-
sequence of the financial crisis.”
private equity groups, including
Charterhouse, Permira and CVC,
acquired the group in June 2007,
funded by £4.8bn of bank borrowings
and £1.5bn of shareholder loans.
Despite Acromas’s losses, chief exec-
utive Andrew Goodsell said the compa-
ny performed strongly in its second
full year of trading since the merger of
AA and Saga into one organisation.
Turnover rose 2.3 per cent to
£1.65bn after a solid performance
from Saga, the specialist insurance
and travel group that serves the over-
50s. Growth in financial services
helped Saga deliver sales of £793m,
Blaming the banks ignores the fact
that business lending is not simply a
supply-side issue which can be
resolved by setting arbitrary targets.
The appetite for risk and leverage
has dropped off significantly since
2007. Indeed, firms are increasingly
looking to reduce debts as they assess
the immediate and long-term conse-
quences of the recession.
Of course, the City must work hard
to ensure viable businesses receive
appropriate funding. So I welcome
the fact that the industry is proactive-
ly coming together to form a new
taskforce, chaired by Stephen Green,
to achieve precisely this outcome.
up nearly six per cent. Sales at AA,
however, were down slightly at
£855.1m. Gross profits excluding one-
off items were flat at £882m.
The company described the per-
formance as “robust” in difficult con-
ditions. The AA’s roadside patrols had
to deal with the worst winter weather
in 30 years and Saga’s motor insur-
ance arm also suffered from a dra-
matic rise in personal injury claims.
The company is in the process of
moving into the care sector, but its
plans suffered a setback last week
when its £102m bid for Nestor
Healthcare was rebuffed.
NEWS | IN BRIEF
Qatar lowers interest rate
Qatar cut its overnight deposit rate by
50 basis points to 1.5 per cent, the
first reduction in over two years, the
central bank said yesterday. “Lowering
the interest rate in Qatar was in line
with the global and regional situation,”
the bank said. Continued deflation in
recent months and July’s rating
upgrade by Standard & Poor’s by one
notch to AA were also reasons for the
cut, it added.
BEST OF THE BROKERS
ANALYSIS l Cineworld 208.00
210 p 13 Aug
200
190
180
170
17 May 7 Jun 25 Jun 15 Jul 4 Aug
CINEWORLD
Evolution Securities has reiterated its
“buy” rating on the stock ahead of this
week’s interim results. The broker, which
has a price target of 235p, is confident
that current trading will be “excellent”
due to the strong box office perform-
ance of hits like Toy Story 3, offsetting a
weaker second quarter.
This initiative also needs to be
backed by greater clarity on the regu-
latory front – particularly Basel III – so
that banks can review their capital
position with confidence while simul-
taneously extending credit to projects
with acceptable risk profiles.
The industry is working hard to
support the recovery by making sure
customers of all sizes know they are
open for business. This applies not
just domestically, but also overseas. At
a time when David Cameron is eager
to “reorientate British foreign policy
and make the foreign office more
commercially minded”, it is impor-
tant to remember financial services
Sales at auto rescue firm the AA were down after bad winter weather
Japan’s growth to slow down
Economic data out today in Japan is
expected to show that the pace of the
country’s growth eased in the second
quarter of the year, as a stronger yen
weighed on exports. Japanese exports
buoyed the economy by 1.2 per cent in
the first quarter, though the latest fig-
ures for June showed that the growth
in the country’s exports slowed. The
yen rose to a 15-year high against the
dollar last week.
ANALYSIS l Prudential 552.50
600 p 13 Aug
580
560
540
520
500
480
17 May 7 Jun 25 Jun 15 Jul 4 Aug
PRUDENTIAL
S&P Equity Research rates the
Prudential a “buy” after last week’s first-
half results. It expects the group’s
favourable business profile will lead the
shares to outperform, outweighing a
likely one-year slowdown in embedded
value operating profit growth in 2011 as
US margins normalise.
To appear in Best of the Brokers email your research to notes@cityam.com
CITYA.M. 16 AUGUST 2010
are Britain’s biggest export industry.
Net foreign earnings totalled
£41.8bn in 2009 – half of the £82bn
trade deficit in goods – according to
figures from TheCityUK. Banks
accounted for £25bn of this, with
insurance (£8.3bn), fund managers
(£2.9bn) and securities traders (£1.4bn)
also making substantial contributions.
With many major economies look-
ing to exports to compensate for
lower domestic demand, we should
support an industry that is one of the
UK’s success stories in this increasing-
ly competitive field.
Nick Anstee is Lord Mayor of the City of
London
Picture: GETTY
Spain hints at future tax hike
Jose Blanco, Spain’s infrastructure
minister, yesterday hinted at future tax
rises in the country if continued invest-
ment in public works is to be secured.
“[Spain] has a very low tax base com-
pared to the average for European
countries,” Blanco said. “The question
citizens must always ask themselves is
if we want first-class public services or
infrastructure, we will also have taxes
in line with European countries.”
ANALYSIS l Intercontinental Hotels
1,250 p
1,073.00
13 Aug
1,200
1,150
1,100
1,050
1,000
17 May 7 Jun 25 Jun 15 Jul 4 Aug
INTERCONTINENTAL HOTELS
Charles Stanley keeps its rating on IHG
as a “hold” for the time being, despite
better-than-expected interims last week.
The broker is cautious over the increas-
ing uncertainty of the shape of the glob-
al economic recovery, giving rise to short
booking windows and limited visibility in
the hotel sector.
CITYA.M. 16 AUGUST 2010
The energy chief who has £22bn
to spend over the next five years
After a surprise
rights issue National
Grid boss Steve
Holliday is preparing
to spend the cash
N
ATIONAL Grid’s surprise £3.2bn
rights issue, which successfully
closed in June, still touches a raw
nerve with chief executive Steve
Holliday.
Large investors said he had spent the
previous 18 months telling them the firm
did not need to come to them for cash.
And then in May, alongside its results, it
announced the largest ever cash call by a
UK utility. Some shareholders felt they
had been “misled” by the company, which
runs the country’s energy transmission
network. The firm’s stock slid seven per
cent on the day of the announcement.
It is the only time the confident
Holliday, who has been at the helm of the
company for three years, looked on the
back foot during our hour-long meeting.
“It is always challenging to communi-
cate a step change,” says Holliday as he
leans his powerful frame back into his seat
(he used to play rugby as a fly-half to a
good standard) in his spacious fourth
floor office in The Strand overlooking
Trafalgar Square. “But at some stage in the
future it was clear that we were going to
have to ramp up our investment pro-
gramme.”
He says a series of projects the firm had
earmarked all came together in a remark-
ably short space of time.
RISE IN CAPITAL SPENDING TO £22BN
Over the last five years National Grid spent
£14bn on capital projects; over the next
five years this will rise to £22bn. Last year
the firm spent £3.3bn on its infrastruc-
ture; this year that will rise to £3.9bn.
The firm has an impressive list of invest-
ments on its hands over the next couple of
years. Around £2.8bn has been earmarked
for nine major projects to link up the next
generation of nuclear power stations as
well as wind farms in Suffolk, Somerset
and Wales.
It will also spend £1bn ripping out the
old electrical wiring in London and
Birmingham, some of which dates back to
the 1950s, and installing the latest systems
housed in three-metre high tunnels.
Holliday says: “This is essential work for
CV | STEVE HOLLIDAY
Age: 54
Work: Chief executive of National Grid
since January 2007. From 2002 to 2007,
he was National Grid’s group director for
UK gas distribution and business services.
Before that he was the executive director
of British Borneo Oil and Gas. Prior that
he spent 19 years with the US energy
giant Exxon, during which time he held a
number of senior positions.
Education: BSc in mining engineering from
Nottingham University
Family: Married with three children, lives
in West London
Hobbies: The England rugby team and the
arts
WORDS BY ROGER BAIRD
these two cities, which play critical roles
in the UK economy.”
The firm will spend £800m upgrading
the UK’s gas network to secure the coun-
try’s liquefied gas supply from abroad.
And Holliday says the business will also
set aside £1bn “to take advantage of non-
regulated opportunities [activities that are
largely not subject to price control]” such
as three projects to run electricity inter-
connectors between the UK and Norway,
Belgium and France.
Holliday says this investment over the
next five years will expand the UK genera-
tion capacity by an “unprecedented”
22,000 megawatts, a third of what the
country currently uses (although much of
this new capacity will be wind power and
so will not be in constant use).
UP TO 5,500 NEW JOBS TO BE CREATED
This investment programme is expected
to create 500 new jobs at National Grid,
which currently employs 27,000, and
another 5,000 jobs among its suppliers.
Holliday said the board looked at a
number of ways to finance this expansion.
He says: “As you would expect us to we
diligently looked at all of our options to
finance this additional spending. We
looked at debt, cutting the dividend, issu-
ing new equity. We thought that equity
was the best way to finance this.”
Holliday adds that the deal was con-
structed to allow the firm to keep its sin-
gle A-grade credit rating. And that its debt
over the next five years is expected to rise
from £22bn currently to £30bn.
This deal will also allow it to fulfil an
earlier promise to continue to boost its
dividend by eight per cent a year for the
next two years.
One National Grid insider said investors
and the senior management had their
wires crossed over how new projects
would be financed.
The source said: “Investors continually
asked us whether we had the ability to
National Grid chief raise debt as a result of the credit crunch.
executive Steve We always told them yes. Shareholders
Holliday in the atrium knew new projects were on the way, and
of the firm’s London assumed they would be wholly financed
offices on The Strand by debt, rather than a mixture of debt and
equity.”
Picture: Holliday is keen to stress that he will
Micha Theiner only invest in projects once he has signed
/City A.M. contracts from generators to use his net-
works for sometimes as long as twenty
years ahead.
The energy boss says: “We will only
invest once we have locked in returns.”
Holliday adds that the speed at which
the investment became due is what might
have caught investors on the hop.
He says: “Investors needed to see this
and understand this. And when they did,
they took up their entitlement of shares
in overwhelming numbers.”
And indeed in June 94.2 per cent of
existing investors took part in the £3.2bn
fundraising, buying two new discounted
shares at 335p each for every five they
held.
NUCLEAR POWER OR WIND POWER
Investors stumped up the cash because the
firm’s very long contracts with power gen-
erators give it strong returns. As one large
“At some shareholder said: “It has got to be among
the most stable companies in Britain.”
stage in the But Holliday adds: “We have to reflect
on the amount of information we put out
future it telling our major shareholders and others
about our investment plans.”
was clear At the same time as its rights issue in
May it also posted a 12 per cent jump in
that we were pre-tax profits to £1.97bn on the back of
strong long-term contracts.
going to The business is also the second largest
power firm in the US, servicing eight mil-
ramp up our lion customers after its acquisition of rival
Keyspan in New York in 2006.
investment But National Grid has said it may exit
some of its smaller US businesses if US reg-
programme.” ulators do not allow it more attractive
returns.
Interview 15
Holliday says he has found the transi-
tion from a Labour government to a coali-
tion one, under energy secretary Chris
Huhne, plain sailing so far. He says this is
because the broad themes of energy policy
– moving towards 20 per cent of power
from renewable sources by 2020, nuclear
new build, and security of supply concerns
– are shared across all the major parties.
The energy boss says: “There has been a
high level of political consensus over these
issues for some time. Differences may lie
in execution, but not over the broad tar-
gets.”
Holliday backs the consideration the
energy department is giving to setting a
floor for carbon credits, which would
make investment in nuclear energy and
other low carbon generation much more
attractive. But he insists this should be
simply the start.
He says: “The government needs to work
out how to provide enough incentives to
attract private capital over the next ten
years and more, so that private investors
will back building new power stations.”
Power transmission will look very differ-
ent in the future. Instead of National Grid
having to link up just a relatively small
number of large nuclear or coal-fired
power stations to the network, it will now
also have to link up a number of smaller
sources like wind farms.
But this thought seems to animate the
power chief. He says: “We need a mixed
bag of big and small power. All these hors-
es need backing.”
He adds: “How will the energy mix look
in 2050? We know how some of it will look
because we are building it now. But it is
important to leave room for technologies
we can’t quite commercialise now, but we
may be able to in the future. It’s such a
bloody exciting challenge.”
Now that Holliday has smoothed over
his difficulties with shareholders, he can
go back to his main job – making sure the
UK has the power it needs when it needs it.
 Investment
16
Tour operators
may see their
bad luck end
There are bargains to be had in the travel
sector, but be careful, says Kathleen Brooks
F
IRST there is a global recession and
rising unemployment to put people
off booking a holiday, then, just
when it looks like the economy has
turned a corner, a giant volcanic ash
cloud drifts from Iceland and disrupts
flights for more than two weeks.
UK tour operators have had a dismal
2010 and the extent of the damage was
made clear last week. Both Thomas Cook
and Tui released results for the second
quarter and neither of them made for
pleasant reading. Both companies said
that full year profits for 2010 would be at
the lower end of analyst estimates, partly
due to uncertainty about public sector
job cuts. This sent shares falling, at one
point Tui’s share price was 10 per cent
down, wiping nearly £230m off of the
company’s value.
Thomas Cook didn’t fare much better
after it said that earnings before interest
and tax would be £405m for the year, sig-
nificantly below City estimates, which
ranged from £450m to £529m.
TRAVEL SECTOR IS GOOD VALUE
But can things get worse for the UK’s tour
operators and has this spell of bad luck
ended? Analysts fall into two camps
about the prospect for UK travel opera-
tors: those that think all of the bad news
is priced in already and things can only
go up from here and those that don’t.
For example, Alphavalue, the inde-
pendent research company, has a buy rec-
ommendation for Thomas Cook. It
argues that the stock is extremely good
value, and expects earnings per share of
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CITYA.M. 16 AUGUST 2010
| Spread Betting
6.4 this year, significantly lower than
average for the FTSE 100 which is around
15 times.
THINGS AREN’T THAT BAD
Analysts at RBS also have a buy recom-
mendation for Thomas Cook. They say
that investors are too sceptical and that
the industry is more robust than many
might think: “We believe market con-
cerns about the death of the package hol-
iday are overdone. The problems thrown
up by the erupting Icelandic volcano
reminded holidaymakers of the dangers
of going it alone.” culture” has further to go. Hart thinks Thomas Cook’s share tour operator sub-sector holds some good
RBS adds that on current multiples, “it there are good opportunities for Costa price has not been opportunities for those who like to trade
appears to us that Thomas Cook Group, Coffee to expand in universities, hospi- flying high since the value stocks. However, there are head-
like Tui, is discounting more disappoint- tals and motorway service stations over recession began winds in the distance, so it’s worth being
ment in both the short and long term, the next year or so. disciplined and using stop-loss orders to
which we believe is misplaced.” So there For spread betters, the highly cyclical limit your downside.
could be some short-term gain for spread
betters. ANALYSIS l FTSE 350 travel and leisure sector share price
Even though Sam Hart, retail analyst 5,250
at Charles Stanley, the stockbroker, says Source: Bloomberg
that valuations look cheap for tour oper- 5,000
ators, he warns that the quality of earn-
ings in the sector could be weak and 4,750
stock prices could fluctuate with news
4,500
about the strength of the consumer. He
prefers other sectors of the travel and 4,250
leisure sector, and is optimistic for the
fortunes of Whitbread, the owner of 4,000
Costa Coffee and Premier Inns. “It is well-
placed to benefit in the current environ- 3,750
ment,” says Hart. “It is orientated to the 3,500
budget sector and if consumers are cau-
tious then Premier Inns become more
attractive.” He also likes Costa Coffee, and Sep 09 Nov Jan 10 Mar May Jul
believes that the UK’s adoption of “coffee
Get started at
gftuk.com.
CITYA.M. 16 AUGUST 2010
Dax fortunes depend on the East
The markets were surprised by
strong German growth, but it
might not last, says Juliet Samuel
W
ITH data for German GDP
growth of 2.2 per cent smashing
expectations of 0.6 per cent on
Friday, traders are wondering
whether any of this second quarter growth
spurt can be retained – and what it means
for equities indices. Despite this good
news, the Dax actually fell from over 6,160
to under 6,080 after trading opened,
reflecting fears that such momentum will
be impossible to maintain in light of
shrinking US demand and a slowdown in
Asia.
The jump in Germany’s GDP was largely
driven by exports and construction – the
latter because of a rush on projects that
had been delayed in the first quarter by
awful weather. Germany’s main trade part-
ners outside the Eurozone were responsi-
ble for the rise in exports, however, with
the US and China stocking up on manufac-
tured goods, it is questionable how much
more heavy machinery and cars they will
want going forward.
Equity markets could be buoyed up in
the near-term by strong figures from some
of the major exporters. Already this has
been borne out by earnings releases –
BMW stocks rose to over €44 after its earn-
ing report showed a huge jump from
€151m in pre-tax profit in 2009 to €1.3bn in
this year’s second quarter. Traders looking
to take advantage of this short-term
strength should keep an eye on auto man-
ufacturers going forwards.
But even BMW’s strong profits didn’t
exclude it from the Dax’s downwards
trend in the last week, as the market
reflected widespread anxiety about global
demand. Germany’s dependence on
exports means that it is highly vulnerable
to an Asian or US slowdown. Societe
Generale’s James Nixon says: “The Dax is
very sensitive to feelings about global
growth and goods exports...It will take its
cue from what happens in the US.”
Nonetheless, Nixon defies the consensus in
being optimistic that better-than-expected
employment figures in Germany could
generate some domestic demand that
TECHNICAL
ANALYSIS
GURU
SANDY
JADEJA
CHIEF TECHNICAL
ANALYST
sandy.jadeja@cityindex.co.uk
Q.
Dear Sandy, what are market
phases and how do I recognise
them?
A.
As you might remember, we have
discussed how traders can be on the
“right side of the market”. If we
could trade by being correct all the time, then
life would be so much easier. However, trying
to get it right is one part of a major hurdle
for many traders. So in order to simplify this
process, let’s consider this. We know that
markets go up, down and sideways, but the
problem is that we know this after the mar-
ket has made its move. So how do we deter-
German exporters are
dependent on factors
far from Berlin
might take over if exports falter.
Most others remain gloomier. Lombard
Street Research’s Michael Taylor says that
much of the Dax’s strength in recent times
has been on the back of the weak euro that
has helped the attractiveness of German
goods: “But if the euro is steady against he
dollar that is a negative for German equi-
ties, as is what we see in Asia. The Dax has
over-extended itself.”
With the government’s insistence on fis-
cal consolidation in 2011 and little wage
growth in recent years, it would take a big
surprise to spark a domestic consumption-
driven comeback in the near-term. This
leaves Germany at the mercy of external
factors, with a lot dependent on the extent
of the Chinese slowdown. If Chinese
growth shrinks below 8 per cent, even the
likes of BMW and Volkswagen will start to
feel the pinch. Which means that traders
looking to bet on major German stocks
and the Dax need to keep their eye on
numbers very far from Berlin.
mine which way the market is likely to move
in order to catch a significant portion of a
trend and hopefully some profits too? Well
markets often, but not always, provide a clue.
And once a market has tested a price level, it
will either accept or reject it, which opens up
the prospect of further moves either higher
or lower. This creates what is known as a
pivot. Once a pivot has been created, the
market may then either trade sideways, or it
could start to stair step higher or lower.
Q.
Dear Sandy, how do I recognise a
pivot?
A.
Let’s use this as an example: assume
that today the market made a low at
100 and a high at 150. Yesterday,
the market made a low at 120 and a high at
170. We can now say that today the market
made a lower low and a lower high. Assume
that tomorrow the market makes a low at
110 and a high at 160. Now we have a higher
low and a higher high. It is the combination
of these three price bars that creates the
pivot. Now as long as the market does not
break below the 100 level, which is the price
rejection level, then the market should con-
tinue higher. If it breaks the 100 level then
we need to start the whole process again
until the market creates another pivot setup.
HONG KONG 17
DELIGHTS
CHECK OUT TRAVEL,
PAGE 19
Germany’s
dependence
on exports
means that it
is vulnerable
to a slowing
US or Asia in
the coming
months
ranging from civil engineering to transport
THE TIPSTER and agriculture – which should protect earn-
ings in the case of a contraction in growth.
NEW SATELLITES LOOK TO Spreadex offers a rolling price of 36.9p-
39.35p.
SEND AVANTI INTO ORBIT Although 2009 was a tough year for
Michael Page, the international recruitment
company seems to be benefiting from the
global pick-up in the jobs market. Although
June’s second quarter results were opti-
S
ATELLITE broadband provider Avanti mistic, it may be difficult for them to sustain
has positioned itself well for growth this performance and we may see some profit
year. It launched a new satellite last taking. Cantor Index offers a quote 377.46p-
quarter that covers Europe and it is plan- 379.24p.
ning to launch a second in 2012, which will be There is a hefty economic calendar this
able to cover middle eastern markets and parts week, which could see some volatility for the
of Africa. Spreadex offers Avanti on a rolling yen. The US, Europe, Japan and the UK all
contract of 498.7p-507.8p. release data, which could move the yen due
Low and Bonar, the supplier of high per- to its sensitivity to global growth and risk.
formance materials such as plastics, tiles and Spread Co quotes dollar-yen at ¥85.87-
building materials, recently announced a set of ¥85.90.
positive results. Its customer base is broad – Kathleen Brooks
Q.
Dear Sandy, where do I place my place to put a stop-loss order. So to con-
stop loss to protect my position? clude we would like to enter a position on a
break above the third bar high, with a stop
at the pivot low for a long position. You
A.
This is simple. Once a market has would reverse the process for a short posi-
created a pivot, we should “antici-
pate” a move away from it. Think
tion if you anticipate a move lower. As you
can see in the Dow Jones Industrial
about it for a moment. If the market should Average chart below, there have been some
move away – or make a break – then ideally significant tradable moves after pivot highs
it should not come back to touch this level. and lows of late.
Unfortunately, like everything in the mar-
kets, there is no guarantee that this will be Please e-mail your questions to
the case. However, the pivot level is a good sandy.jadeja@cityindex.com.
ANALYSIS l Dow Jones daily chart
10,750 Pivot high Pivot high
Pivot high Pivot high
10,500 Pivot high Pivot low
Pivot high
10,250 Pivot low
10,000 Pivot low
9,750 Pivot low
Pivot low
9,500
June July August
 18 Markets & Investments CITYA.M. 16 AUGUST 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .264.90 –2.30 314.80 246.90 Cobham . . . . . . . . . . . . . . . . . . .216.40 –1.40 278.60 192.60 Investec . . . . . . . . . . . . . . . . . . .464.30* +5.00 565.00 378.20 SABMiller . . . . . . . . . . . . . . . . .1897.00* –1.00 2090.00 1307.00
3i Infrastructure . . . . . . . . . . . . . 113.80 +0.60 115.00 89.35 COLT Group . . . . . . . . . . . . . . . .120.00 +0.30 144.20 111.20 ITV . . . . . . . . . . . . . . . . . . . . . . . .50.00 +0.21 71.75 41.04 Sage . . . . . . . . . . . . . . . . . . . . . .239.20 +1.20 260.50 205.20
A.B. Foods . . . . . . . . . . . . . . . .1023.00 –4.00 1096.00 785.50 Compass . . . . . . . . . . . . . . . . . .501.00 –6.00 574.50 308.10 Jardine Lloyd Thompson. . . . . . .585.50 –0.50 604.50 420.70 Sainsbury(J) . . . . . . . . . . . . . . . .347.70 –0.80 373.00 307.60
Aberdeen Asset Man . . . . . . . . . .134.70 +0.50 155.60 111.00 Cookson . . . . . . . . . . . . . . . . . . .448.20 –6.30 616.00 347.60 Johnson Matthey . . . . . . . . . . .1637.00 –14.00 1814.00 1302.00 Schroders . . . . . . . . . . . . . . . . .1367.00* +37.00 1450.00 957.00
Admiral. . . . . . . . . . . . . . . . . . .1459.00 –8.00 1520.00 991.00 Croda Intl . . . . . . . . . . . . . . . . .1259.00 –9.00 1355.00 581.00 JPMorgan Emerg Mkts . . . . . . . .522.00 +4.50 549.00 395.10 Schroders N/V. . . . . . . . . . . . . . 1105.00* +25.00 1185.00 804.50
Aegis . . . . . . . . . . . . . . . . . . . . . 114.30 — 137.30 89.80 Daily Mail ‘A’ . . . . . . . . . . . . . . . .456.50 –2.80 539.00 333.10 Kazakhmys . . . . . . . . . . . . . . . . 1156.00 –14.00 1634.00 845.00
Afren . . . . . . . . . . . . . . . . . . . . . .97.25 +1.15 111.00 52.50 Dana Petroleum . . . . . . . . . . . .1677.00 +47.00 1729.00 968.50 Kesa Electricals . . . . . . . . . . . . .129.20 +0.20 162.00 98.45 Scot. & Sthrn Energy. . . . . . . . . 1125.00* –11.00 1206.00 357.50
African Barr Gold . . . . . . . . . . . .549.00 –8.00 685.00 520.50 Davis Service . . . . . . . . . . . . . . .368.30 –0.20 442.30 354.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .203.70 –3.40 255.00 196.50 Scottish Mortgage. . . . . . . . . . . .579.50 –3.50 623.50 439.70
Aggreko . . . . . . . . . . . . . . . . . .1508.00 –7.00 1639.00 559.00 De La Rue . . . . . . . . . . . . . . . . . .708.00 –3.50 1021.00 666.50 Ladbrokes . . . . . . . . . . . . . . . . .131.30* — 174.29 114.60 SEGRO . . . . . . . . . . . . . . . . . . . .273.30 +1.30 403.10 244.00
Alliance Trust . . . . . . . . . . . . . . .312.80 +0.10 352.70 281.00 Debenhams . . . . . . . . . . . . . . . . .57.85 –0.65 90.00 51.95 Lancashire Hldgs . . . . . . . . . . . .522.00 +2.50 545.00 416.70 Serco . . . . . . . . . . . . . . . . . . . . .540.00 –4.50 656.50 413.70
AMEC . . . . . . . . . . . . . . . . . . . . .873.50 +7.00 937.00 703.00 Derwent London . . . . . . . . . . . .1364.00 –6.00 1490.00 1077.00 Land Securities . . . . . . . . . . . . . .598.50 –2.50 743.50 543.00 Severn Trent . . . . . . . . . . . . . . .1334.00 +2.00 1358.00 929.50
Amlin . . . . . . . . . . . . . . . . . . . . .424.30 +1.90 436.20 336.30 Dexion Absolute . . . . . . . . . . . . .139.00 –0.90 148.00 121.10 Legal & General . . . . . . . . . . . . . .90.75 +2.85 94.70 64.30 Shaftesbury . . . . . . . . . . . . . . . .397.80 +1.80 426.50 341.70
Anglo American . . . . . . . . . . . .2370.50 –6.00 3015.50 1777.50 Diageo . . . . . . . . . . . . . . . . . . . 1108.00 –1.00 1176.00 922.50 Lloyds Banking Gp . . . . . . . . . . . .70.24 –0.45 77.61 45.30 Shire. . . . . . . . . . . . . . . . . . . . .1473.00 –18.00 1526.00 991.50
Antofagasta . . . . . . . . . . . . . . . .990.50 –5.00 1100.00 692.00 Dimension Data . . . . . . . . . . . . .120.40 –0.10 125.50 55.00 Logica . . . . . . . . . . . . . . . . . . . . 111.60 +0.90 149.10 100.80 Smith & Nephew . . . . . . . . . . . . .570.00 –1.50 700.50 465.80
Aquarius Platinum . . . . . . . . . . .256.10 +3.00 490.00 211.50 Domino’s Pizza . . . . . . . . . . . . . .412.60* –0.40 431.30 229.00 London Stk Exchange . . . . . . . . .651.00* +1.00 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . . 1151.00 –11.00 1242.00 764.00
ARM Holdings . . . . . . . . . . . . . . .308.00 –0.80 370.00 120.50 Drax . . . . . . . . . . . . . . . . . . . . . .388.90 +10.00 496.50 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1485.00 –14.00 2198.00 1336.00 SOCO Intl . . . . . . . . . . . . . . . . . .447.90 –4.20 476.60 380.60
Arriva . . . . . . . . . . . . . . . . . . . . .772.50 –0.50 782.50 428.20 DSG Intl . . . . . . . . . . . . . . . . . . . .24.62 –0.43 39.75 23.32 Man . . . . . . . . . . . . . . . . . . . . . . 211.20 +0.90 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .894.00 +3.50 949.00 561.00
Ashmore . . . . . . . . . . . . . . . . . . .284.20 –1.30 311.20 211.60 Dunelm . . . . . . . . . . . . . . . . . . . .384.30 –2.70 438.40 250.70 Marks & Spencer. . . . . . . . . . . . .331.40 +0.30 412.70 321.90
Astrazeneca . . . . . . . . . . . . . . .3295.00* –0.50 3376.00 2668.00 Easyjet . . . . . . . . . . . . . . . . . . . .359.10 –3.60 499.90 308.50 Meggitt . . . . . . . . . . . . . . . . . . . .268.30* +0.50 331.00 193.10 Spirax-Sarco Eng . . . . . . . . . . .1501.00 +2.00 1617.00 929.00
Atkins(Ws) . . . . . . . . . . . . . . . . .756.50 –5.50 801.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .401.70 +2.40 412.40 315.60 Melrose . . . . . . . . . . . . . . . . . . .222.90 +0.90 251.50 126.50 Spirent Comms . . . . . . . . . . . . . .125.00* +0.50 135.90 68.55
Autonomy Corp . . . . . . . . . . . .1565.00 +5.00 2012.00 1229.00 Electrocomponents . . . . . . . . . . .207.50 –0.50 245.00 142.90 Mercantile IT . . . . . . . . . . . . . . . .942.50 –3.50 1002.00 822.50 Sports Direct Intl . . . . . . . . . . . . .102.50 +0.60 134.00 81.80
Aveva . . . . . . . . . . . . . . . . . . . .1338.00 –6.00 1375.00 805.00 EnQuest . . . . . . . . . . . . . . . . . . . 112.00 — 121.40 87.35 Michael Page Intl. . . . . . . . . . . . .373.00 –4.00 461.50 299.60 SSL Intl . . . . . . . . . . . . . . . . . . . 1159.00* +1.00 1190.00 522.50
Aviva . . . . . . . . . . . . . . . . . . . . .387.40 +20.10 474.00 290.20 Essar Energy . . . . . . . . . . . . . . .387.10 –3.90 475.90 358.50 Millen & Copthorne . . . . . . . . . . .482.60* +5.60 514.50 297.90 St James’s Place . . . . . . . . . . . . .270.20* –4.90 296.90 194.40
Babcock International . . . . . . . . .528.50 –7.50 660.50 473.80 Eurasian Nat Res . . . . . . . . . . . .921.50 –9.50 1276.00 731.00 Misys . . . . . . . . . . . . . . . . . . . . .256.40 –1.30 281.70 173.90 Stagecoach. . . . . . . . . . . . . . . . .165.60 +4.90 204.90 126.20
BAE Systems . . . . . . . . . . . . . . .309.10 –3.60 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .620.00 +10.00 630.00 252.00 Mitchells & Butlers . . . . . . . . . . .298.10 –1.50 343.90 228.30 Standard Chartered . . . . . . . . . .1715.50* –29.50 1927.00 1340.00
Balfour Beatty . . . . . . . . . . . . . . .255.80 –5.20 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .617.50 — 664.50 489.00 MITIE . . . . . . . . . . . . . . . . . . . . .194.20* +1.60 281.70 192.20 Standard Life . . . . . . . . . . . . . . .209.80 +6.10 237.00 170.00
Barclays . . . . . . . . . . . . . . . . . . .317.00* +7.45 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .91.40 –0.10 96.80 79.00 Mondi . . . . . . . . . . . . . . . . . . . . .464.30 +6.30 488.00 263.50 SuperGrp . . . . . . . . . . . . . . . . . .971.50 +6.50 1030.00 499.00
Barratt Development . . . . . . . . . . .94.85 –1.40 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .289.20* –0.80 396.20 138.00 Monks Inv Tst . . . . . . . . . . . . . . .292.00 +0.70 321.20 240.00 TalkTalk . . . . . . . . . . . . . . . . . . .125.00 — 147.10 106.60
BBA Aviation . . . . . . . . . . . . . . .187.90 –3.00 220.00 136.60 FirstGroup . . . . . . . . . . . . . . . . .349.10* –0.80 448.80 331.20 Morrison Wm . . . . . . . . . . . . . . .274.00 –1.00 306.30 255.00 Talvivaara Mining . . . . . . . . . . . .400.60 +6.60 501.50 341.40
Beazley. . . . . . . . . . . . . . . . . . . . 115.40* –0.20 125.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .269.50* — 297.20 229.50 Murray Intl Tst . . . . . . . . . . . . . . .854.50* +7.50 893.50 632.00 Tate & Lyle . . . . . . . . . . . . . . . . .421.70 –11.20 509.00 372.20
Bellway. . . . . . . . . . . . . . . . . . . .552.50 –11.00 927.50 547.50 Fresnillo . . . . . . . . . . . . . . . . . .1004.00 –18.00 1139.00 539.50 National Express. . . . . . . . . . . . .222.50 +0.90 258.60 155.86
Berkeley . . . . . . . . . . . . . . . . . . .800.00 +2.50 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .261.80 +0.70 285.70 209.40 National Grid . . . . . . . . . . . . . . .537.50* –1.00 607.65 474.80 Taylor Wimpey . . . . . . . . . . . . . . .27.96 –0.84 54.90 24.29
BG . . . . . . . . . . . . . . . . . . . . . .1025.00* +12.00 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .469.50 –0.30 484.00 370.00 Next . . . . . . . . . . . . . . . . . . . . .1924.00 –42.00 2360.00 1601.00 Telecity . . . . . . . . . . . . . . . . . . . .434.50 +6.00 458.90 311.30
BHP Billiton . . . . . . . . . . . . . . .1943.00 +3.00 2346.00 1481.00 GKN . . . . . . . . . . . . . . . . . . . . . .135.70* +0.10 155.00 100.20 Northumbrian Water . . . . . . . . . .322.60* –1.00 341.30 219.90 Templeton Emrg Mkts . . . . . . . . .544.50 +3.00 598.00 390.00
BlackRock Mining . . . . . . . . . . . .557.50 +3.00 654.50 413.00 GlaxoSmithKline . . . . . . . . . . . .1224.50* +28.50 1347.00 1088.00 Old Mutual . . . . . . . . . . . . . . . . .120.80 — 130.20 85.80 Tesco . . . . . . . . . . . . . . . . . . . . .401.05 –0.35 454.90 361.20
Bluecrest Allblue GBP . . . . . . . . .167.50 +0.20 167.90 136.20 Great Portland Estates . . . . . . . .308.00 — 332.10 236.60 Pace . . . . . . . . . . . . . . . . . . . . . .209.50 +0.40 243.80 145.00 Thomas Cook . . . . . . . . . . . . . . .176.90 +0.40 277.20 172.30
Booker . . . . . . . . . . . . . . . . . . . . .43.97 –0.28 49.50 33.00 Greene King . . . . . . . . . . . . . . . .410.20* –2.40 504.00 372.50 Partygaming . . . . . . . . . . . . . . . .267.00 –3.70 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .321.10 –0.20 325.70 155.00
BP . . . . . . . . . . . . . . . . . . . . . . .416.40 +6.35 658.20 296.00 Halfords . . . . . . . . . . . . . . . . . . .470.00 — 562.50 324.00 Pearson . . . . . . . . . . . . . . . . . . .983.00 –0.50 1069.00 695.00 Travis Perkins . . . . . . . . . . . . . . .804.50 –3.00 915.00 647.50
Brit Insurance . . . . . . . . . . . . . . .988.00 –1.00 1017.00 709.00 Halma . . . . . . . . . . . . . . . . . . . . .273.60* +0.60 298.70 186.60 Pennon . . . . . . . . . . . . . . . . . . . .592.00* +2.00 613.00 434.40 TUI Travel . . . . . . . . . . . . . . . . . .201.20 +8.60 313.90 189.20
British Airways . . . . . . . . . . . . . .215.60 +1.80 255.80 167.60 Hammerson . . . . . . . . . . . . . . . .365.40 –0.50 460.30 332.20 Persimmon . . . . . . . . . . . . . . . . .346.80 –0.80 534.50 340.20 Tullett Prebon . . . . . . . . . . . . . . .368.40 +6.30 436.20 261.20
British Amer. Tob . . . . . . . . . . .2253.00 +20.50 2335.50 1832.00 Hargreaves Lansdown . . . . . . . .382.00 –1.40 387.00 214.00 Petrofac . . . . . . . . . . . . . . . . . .1291.00 +19.00 1372.00 849.00 Tullow Oil . . . . . . . . . . . . . . . . .1259.00 +26.00 1375.00 979.50
British Empire Tst . . . . . . . . . . . .431.00 –1.00 467.90 338.50 Hays . . . . . . . . . . . . . . . . . . . . . . .89.65 +0.10 119.00 88.05 Petropavlovsk . . . . . . . . . . . . . .1005.00 –18.00 1370.00 617.00 UK Commercial Prop. . . . . . . . . . .76.50* –0.25 84.90 65.25
British Land . . . . . . . . . . . . . . . .449.40* –0.40 532.00 416.00 Henderson . . . . . . . . . . . . . . . . .130.10 –0.10 157.80 110.60 Premier Farnell . . . . . . . . . . . . . .230.80 +0.30 252.60 140.60 Ultra Electronics . . . . . . . . . . . .1654.00 –6.00 1694.00 1198.00
Britvic. . . . . . . . . . . . . . . . . . . . .481.70 –1.30 518.00 324.80 Heritage Oil. . . . . . . . . . . . . . . . .339.00* –8.00 587.00 337.20 Premier Oil . . . . . . . . . . . . . . . .1522.00 +28.00 1610.00 984.00
Brown(N.) . . . . . . . . . . . . . . . . . .225.20 +0.20 284.30 204.80 Hikma Pharma . . . . . . . . . . . . . .719.50 +4.50 746.00 440.00 Provident Financial . . . . . . . . . . .814.50 –1.00 986.00 795.00 Unilever . . . . . . . . . . . . . . . . . .1705.00* –26.00 2024.00 1602.00
BSkyB . . . . . . . . . . . . . . . . . . . .709.00 +3.00 732.00 521.00 Hiscox . . . . . . . . . . . . . . . . . . . .353.80 –0.20 369.30 299.60 Prudential . . . . . . . . . . . . . . . . . .552.50 –1.00 665.00 475.70 United Utilities . . . . . . . . . . . . . .593.00 –2.00 606.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .138.40* +0.10 151.00 108.40 Hochschild Mining . . . . . . . . . . .312.10 +1.10 370.60 220.00 PZ Cussons . . . . . . . . . . . . . . . .343.00 –5.00 373.20 210.10 Utd Business Media . . . . . . . . . .549.00 +2.50 579.50 408.30
Bunzl . . . . . . . . . . . . . . . . . . . . .688.50 — 784.50 533.00 Home Retail . . . . . . . . . . . . . . . .215.20 –4.80 336.50 208.50 Qinetiq . . . . . . . . . . . . . . . . . . . .109.20 –6.40 179.10 109.20 Vedanta Resources . . . . . . . . . .2053.00 –128.00 2967.00 1616.00
Burberry . . . . . . . . . . . . . . . . . . .829.00 +3.00 891.50 443.10 Homeserve . . . . . . . . . . . . . . . . .474.50 +8.40 488.20 435.40 Randgold Resources. . . . . . . . .5510.00 –85.00 6600.00 3351.00 Victrex . . . . . . . . . . . . . . . . . . . 1118.00 +16.00 1320.00 613.50
Cable & Wire Comms . . . . . . . . . .61.25* +0.55 150.00 53.00 HSBC Hldgs . . . . . . . . . . . . . . . .652.90 –8.40 766.80 595.20 Reckitt Benckiser . . . . . . . . . . .3121.00* –1.00 3667.00 2694.00 Vodafone . . . . . . . . . . . . . . . . . .153.25 +1.25 155.50 124.85
Cable & Wire Wwide . . . . . . . . . . .62.20* –0.05 94.80 61.35 Hunting . . . . . . . . . . . . . . . . . . .524.50 +5.50 659.50 423.20 Reed Elsevier . . . . . . . . . . . . . . .537.00* +0.50 566.00 414.00 Weir . . . . . . . . . . . . . . . . . . . . . 1174.00 –23.00 1275.00 599.00
Cairn Energy. . . . . . . . . . . . . . . .468.30 +15.50 485.30 306.80 ICAP . . . . . . . . . . . . . . . . . . . . . .390.00* +9.80 478.30 291.70 Regus . . . . . . . . . . . . . . . . . . . . . .72.75 +0.15 125.50 68.65 WH Smith . . . . . . . . . . . . . . . . . .406.50 +0.70 551.00 396.00
Caledonia Invs . . . . . . . . . . . . .1576.00 +11.00 1759.00 1496.00 IG . . . . . . . . . . . . . . . . . . . . . . . .483.00 +1.80 498.90 291.00 Renishaw . . . . . . . . . . . . . . . . . .847.00 –4.50 915.50 420.00 Whitbread . . . . . . . . . . . . . . . . .1381.00 –1.00 1645.00 917.00
Capita . . . . . . . . . . . . . . . . . . . . .697.50 +2.50 829.50 643.50 Imagination Tech Gp . . . . . . . . . .342.00 –1.80 358.30 149.75 Rentokil Initial . . . . . . . . . . . . . . . .99.30 +0.75 140.20 94.10 William Hill . . . . . . . . . . . . . . . . .163.80 +0.60 217.80 160.50
Capital & Counties . . . . . . . . . . . 115.00 +1.30 125.40 99.60 IMI . . . . . . . . . . . . . . . . . . . . . . .695.50 +9.50 786.00 362.10 Resolution . . . . . . . . . . . . . . . . .246.00 –2.00 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .439.40 +0.40 487.00 365.50
Capital Shopping Centres . . . . . .326.20 +1.40 580.00 300.10 Imperial Tobacco. . . . . . . . . . . .1850.00* +25.00 2159.00 1672.00 Rexam . . . . . . . . . . . . . . . . . . . .297.50 –4.00 348.80 249.80
Carillion . . . . . . . . . . . . . . . . . . .292.50 –4.20 361.90 263.90 Inchcape. . . . . . . . . . . . . . . . . . .265.70 –4.90 347.00 235.00 Rightmove . . . . . . . . . . . . . . . . .600.00 +0.50 729.00 404.50 Wolseley . . . . . . . . . . . . . . . . . .1329.00 –42.00 1742.00 1155.00
Carnival . . . . . . . . . . . . . . . . . .2150.00 –30.00 2937.00 1747.00 Informa . . . . . . . . . . . . . . . . . . . .377.80 –0.30 439.40 252.10 Rio Tinto . . . . . . . . . . . . . . . . . .3277.00* +11.50 4104.00 2218.50 Wood Group (John). . . . . . . . . . .349.80 +8.50 411.70 277.00
Catlin . . . . . . . . . . . . . . . . . . . . .351.10 –5.00 394.60 303.20 Inmarsat . . . . . . . . . . . . . . . . . . .688.50 –13.50 831.00 491.00 RIT Capital Partners . . . . . . . . . 1110.00 –6.00 1215.00 913.50 WPP . . . . . . . . . . . . . . . . . . . . . .671.00 +1.00 744.00 461.90
Centamin Egypt . . . . . . . . . . . . .167.00 +3.60 174.75 80.00 Intercontl Hotels . . . . . . . . . . . .1073.00 +19.00 1244.00 697.50 Rolls Royce . . . . . . . . . . . . . . . .559.50 –0.50 631.50 421.10 Xstrata . . . . . . . . . . . . . . . . . . . .995.60 –11.40 1344.50 735.50
Centrica . . . . . . . . . . . . . . . . . . .327.80 –2.30 333.10 216.90 Intermediate Capital . . . . . . . . . .263.20* +0.30 332.00 233.50 Rotork . . . . . . . . . . . . . . . . . . .1492.00 +42.00 1537.00 933.00 LONDON TOP 250 BY MARKET CAPITALISATION
Charter Intl . . . . . . . . . . . . . . . . .636.00* –1.00 855.50 560.50 Intertek . . . . . . . . . . . . . . . . . . .1653.00 +4.00 1745.00 1103.00 Royal Bank Of Scot . . . . . . . . . . . .46.97 +0.56 58.95 28.25
Chemring . . . . . . . . . . . . . . . . .2675.00 –109.00 3711.00 2017.00 Intl Personal Fin . . . . . . . . . . . . .231.00 –1.60 283.00 128.25 Royal Dutch Shell A . . . . . . . . .1777.50* –4.00 2068.50 1559.50 * Ex-Dividend † Suspended
Chloride Group . . . . . . . . . . . . . .373.00 –0.60 390.50 138.60 Intl Power . . . . . . . . . . . . . . . . . .366.00 +2.50 384.10 248.20 Royal Dutch Shell B . . . . . . . . .1715.00* –5.00 1997.50 1528.00
Close Bros . . . . . . . . . . . . . . . . .664.50 –1.00 806.50 658.50 Invensys . . . . . . . . . . . . . . . . . . .243.40 –0.70 350.30 234.50 RSA Insurance . . . . . . . . . . . . . .127.40* –1.10 142.00 114.10 www.interactivedata.com

Watch out for negative reaction to an MPC split

open down 5 points at 5,270. flat to negative tone to the week but ANALYSIS l FTSE
MARTIN ON The German DAX index is quoted
around 6,097, down 13 points from
the risk is to the down side, so watch
out for unexpectedly negative news.
5,500

5,400
5,275.44
13 Aug

THEMARKETS Friday and the French CAC is seen

opening down 10 points at the 3,600
level.
Martin Slaney is director of global dealing
operations at GFT 5,300

5,200

5,100
ALL EYES ON THE MPC MINUTES
Data to focus on from the UK econom- 5,000
ic front include inflation numbers 4,900
tomorrow and  retail sales on
Thursday, but the highlight of the 4,800
week is likely to  come from  the 4,700
release of the minutes of the Bank of 17 May 7 Jun 25 Jun 15 Jul 4 Aug
England’s latest monetary policy
committee (MPC) meeting, due out ANALYSIS l DAX 6,110.41
MARTIN SLANEY on Wednesday.
The first three-way split amongst
6,400 13 Aug
6,300
the MPC for the first time in two years

M
ARKETS are expected to open is possible, with divergences emerg- 6,200
marginally lower this morn- ing among members over the need 6,100
ing on a weak US lead from for more quantitative easing to stimu- 6,000
after the close on Friday, and late what is expected to be a  slow
5,900
amidst trepidation ahead of an active and difficult recovery, keeping inter-
economic calendar for the coming est rates on hold or even raising rates 5,800
week, as talk grows of a double dip to combat sustained high levels 5,700
recession in the UK. of inflation.
GFT is calling the FTSE 100 index to On that basis we foresee a broadly 17 May 4 Jun 24 Jun 14 Jul 3 Aug

WALL STREET WEEK AHEAD

results this week along with top tech pointed to a slowdown in the recov- than it did earlier this year in the tions, a day after department stores

U
S INVESTORS will brace for fur- names such as Hewlett-Packard, ery. But for retailers, which typically retail space,” said Michael Sheldon, Kohl’s and Nordstrom’s gave conser-
ther signs of weakness in the which has been in the spotlight since round out the earnings period, chief market strategist at RDM vative profit outlooks.
economic recovery this week as its chief executive’s resignation on 6 results have been less optimistic. If Financial in Connecticut. The Federal Reserve also gave a
earnings from key retailers are August after the closing bell. forecasts from JC Penney and others “We’re likely to hear more about bleaker outlook on the economy last
expected. Industrial production, So far this earnings period, some are any indication, reports this week somewhat sluggish consumer spend- week.
housing starts and inflation data will 75 per cent of results from Standard could confirm concern about a weak- ing.” Technology shares led losses on
come under scrutiny as well, after & Poor’s 500 companies have beaten er outlook for the sector. JC Penney forecast a profit for the Friday, with the Nasdaq ending the
stocks on Friday wrapped up their earnings estimates, according to “The tone among retailers has year below Wall Street’s expectations week down five per cent, while the
worst week in six. Thomson Reuters estimates, offset- changed somewhat, and the outlook last week and said its customers were Dow fell 3.3 per cent and the S&P 500
Wal-Mart is expected to announce ting a batch of economic reports that now looks somewhat less upbeat vulnerable to weak economic condi- slid 3.8 per cent.
 4
5 6

Lifestyle
8 19
THE LATEST 2
PUZZLES 2 9
| Travel PAGE 20 5 4
1 4
5
5 8 7 2
1 1

Eastern lights: Asia’s sleepless city

Hong Kong is perfect
for sport fans, culture
vultures and partyers,
says Esther Shaw

A
BRILLIANT meeting of East and
West, it offers an unforgettable
introduction to the Orient, and is
the perfect place to explore a dif-
ferent culture while taking in the rugby
at the Hong Kong Sevens (and, for the
sports-mad, the golf at the Hong Kong
Open Championship and the horse-rac-
ing at Happy Valley). Or just partying
hard in the city’s array of top-notch bars
and clubs and dining in its first-rate
restaurants.
This is a city that works hard – and
plays even harder – and the pace of this
former colonial outpost is so frantic that
it’s impossible not to get caught up in its
infectious buzz. Here are some sugges-
tions of how to dip your toe in.

TAKE IN THE CITY

NIGHTLIFE
One of the best things about Hong Kong
is that once the action on the pitch
comes to a close, you can continue the
party in Hong Kong’s wide array of bars
and clubs. If you want to drink and dance
from dusk till dawn, head to Lan Kwai
Fong, Wan Chai or Soho where the streets
are lined with bars and cafes – and seem-
ingly every culinary experience imagina-
ble. Or, for something a little more
sedate, head to the waterfront to watch
the nightly Symphony of Lights in Hong Kong’s
Victoria Harbour. For more devoted party- glittering skyline.
ing, see www.hkclubbing.com.
Picture: GETTY
HEAD UPWARDS
By day there is a lot to see and do too, and
for spectacular views, the key is to head
upwards. A trip on the funicular tram up HARBOUR past Deep Water and Repulse Bays to Stanley Market and pick up a few sou-
to Victoria Peak is not to be missed. The While Hong Kong oozes wealth and Stanley on the south side of Hong Kong venirs to remind you of the time spent in
tram takes you steeply up the mountain glamour, you can hop between Hong Island, where you can browse the riot of this spectacular sub-tropical city which
in the centre of Hong Kong Island and Kong Island and Kowloon on the iconic clothes and cheap jewellery on sale at doesn’t stand still for a moment.
deposits you at the top where you can green and white Star Ferry for a less than
gaze out over the city and its skyscrapers £1, and soak up the great views of the
– one of the greatest urban vistas in the soaring skylines that border both sides of NEED TO KNOW: GETTING THERE AND STAYING THERE
world. Victoria Peak is also the the waterway. Once you’ve disembarked,
start of a nature trail that winds spend some time – and money – in
its way into the lush, green wood- Kowloon’s shopping mecca of stalls, mar- Virgin Atlantic (www.virginatlantic.com) flies Victoria Park, Victoria Harbour and the Royal
land above the city. The tube, kets and labyrinthine arcades, before from London Heathrow to Hong Kong daily. Fares Hong Kong Yacht Club, and it's well worth book-
known as the MTR, is easy to navi- heading to the top of a skyscraper for din- start from £529 in economy, £1,096 in premium ing in for the Saturday or Sunday lunch buffet
gate, and the best way to reach ner. Indulge in a 10-dish feast at the 28th economy, and £3,400 in upper class. offering a wide range of cuisine including all-you-
Lantau Island from where you floor Hutong restaurant on Peking Road, Hotel: I stayed at The Excelsior Hotel (www. can-eat dim sum, and champagne.
can catch the Ngong Ping and sup on scallops, spicy soft-shell crab excelsiorhongkong.com), a large skyscraper hotel There are a whole host of events taking place
cable car up over Tung Chung and de-boned lamb ribs before washing it in the central Causeway Bay which is a great throughout Festive Hong Kong 2010, the Lantern
Bay, past the airport and all down with a cup of Chinese tea. staging post for forays around the city. Talk of Festival in September, and the Wine and Dine
across steep hills to the Po The Town, the Excelsior's 34th floor restaurant Festival in October. For more information go to
Lin Monastery and giant AROUND THE CITY and roof terrace, has incredible views over www.discoverhongkong.com
Tian Tan Budda statue. A 45-minute bus-ride will take you out

Rugby and
crowds of supporters from around the
world decked out in all manner of fancy
dress enjoy a carnival atmosphere – and a
unique camaraderie as they rise together
George in South Africa, Wellington in
New Zealand, Las Vegas in the USA, and
Adelaide in Australia, before returning to
Hong Kong in March 2011. For more infor-

more: Hong
to thumping music after every try.
The Sevens is one of the major sports
events in Hong Kong and the long week-
end of competition and partying has
mation go to www.hksevens.com
Gullivers Travel offers packages of between
four and six nights ranging from £1,400-£2,300.
This includes official Sevens Match Tickets,

Kong Sevens
become something of an institution.
More than 120,000 spectators swarm
through the gates over the three-day peri-
od, including hoards of dedicated fans fol-
lowing the England squad, one of the 24
international teams, vying for the top spot
return flights with Virgin Atlantic (www.vir-
ginatlantic.com) or Cathay Pacific (www.cathay-
pacific.co.uk), transfers and accommodation at
the Excelsior Hotel (www.excelsior
hongkong.com) in Causeway Bay on a bed and
breakfast basis. Gullivers’ staff are on hand at

T
HE end of March marks the time
when the rugby nations come to
town for three days of non-stop
action on the pitch at the Hong Kong
stadium near Happy Valley. Off-pitch it's a
non-stop party in the stands, where
against big names such as New Zealand,
Australia, Samoa and Fiji, as well as
emerging names such as Kenya and
Russia.
The tournament will then start its new
series in December in Dubai, followed by
the Excelsior to deal with any queries and help
organise tours through local agent PC Tours &
Travel. Gullivers’ Travel also offers Ground Only
packages and Flight and Match Ticket packages;
for more information go to
www.gulliverstravel.co.uk. The Sevens is one of the most exhilarating sporting events going.
 20 Lifestyle | TV& Games CITYA.M. 16 AUGUST 2010

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm Saints and Scroungers:
BBC News
8pm EastEnders
8.30pm Panorama
9pm CHOICE Who Do You
Think You Are?
10pm BBC News
10.25pm Regional News
10.35pm Gears and Tears
11.05pm The Armstrong &
Miller Show
11.35pm FILM The 13th
Warrior 1999; Weatherview
1.20am Sign Zone: Tribal Wives
2.20am Sign Zone: History Cold
Case 3.20am-6am BBC News
6pm Eggheads: Quiz show,
hosted by Dermot Murnaghan.
6.30pm Restoration Roadshow
7pm Dan Snow’s Norman
Walks
7.30pm Roger and Val Have
Just Got In
8pm University Challenge
8.30pm Antiques Master
9pm Dragons’ Den: The world’s
smallest car and an emergency
escape invention.
10pm Grandma’s House
10.30pm Newsnight: Weather
11.20pm Home Movie
Roadshow
12.20am Victorian Pharmacy
1.20am BBC News 4.05am-6am
Close
6pm London Tonight 6pm The Simpsons 6pm CHOICE The Boss Is
6.30pm ITV News 6.30pm Hollyoaks Coming to Dinner
7pm Emmerdale 7pm Channel 4 News 6.25pm Don’t Stop Believers
7.30pm Coronation Street 7.55pm 4thought.tv 6.30pm Live from Studio Five
8pm Countrywise 8pm Our Drugs War: How the 7pm Five News at 7
8.30pm CHOICE Coronation narcotics trade is affecting the 7.30pm How Do They Do It?;
Street war in Afghanistan. Last in the Five News Update
9pm Real Crime with Mark series. 8pm The Gadget Show: Five
Austin: PC Sharon Beshenivsky 9pm The Hospital News at 9
– Death on Duty 10pm Big Brother: The latest 9pm FILM Inferno 1999.
10pm ITV News at Ten highlights from the house. 10.55pm Don’t Stop Believers WHO DO YOU THINK YOU ARE
10.30pm London News 11.10pm Alan Carr: Chatty Man BBC1, 9PM
11pm FILM Last Man
10.35pm FILM Matchstick 11.55pm Music on 4: Standing: 1996. Actor Rupert Penry-Jones investigates
Men: Crime comedy, starring RockCorps 2010: Snoop 1am SuperCasino: Live interactive his family’s link to India, learning about
Nicolas Cage. 2003. Dogg Special gaming. 4.05am The Boss Is Coming his ancestors’ work for the
12.45am The Zone; ITV News 12.25am Poker to Dinner 4.30am Wildlife SOS subcontinent’s medical service.
Headlines 1.25am Big Brother: Live 4.50am 4.55am County Secrets 5.10am
2.45am The Jeremy Kyle Show Bear Grylls: Born Survivor 5.40am- The New Tomorrow 5.35am-6am
3.40am-5.30am ITV Nightscreen 6.05am Yo Gabba Gabba Michaela’s Wild Challenge

SKY SPORTS 1 1am WWE: Vintage Collection 1am Charmed 3am Passport 10pm The Sex Education Show: 3.50am Nasa’s Greatest
SATELLITE & CABLE

7pm Live Monday Night
Football 10.30pm Netbusters
11pm SPL Round-Up 11.30pm
Soccer AM: The Best Bits
12.30am Football Special
2.30am Sports Unlimited
3.30am Watersports World
4.30am Max Power 5.30am-
6am FIFA Futbol Mundial
SKY SPORTS 2
7pm Trilby Tour Golf 7.30pm
Live Speedway 9.30pm
Wonderful World of Golf 11pm
PGA Tour Classic 12am Trilby
Tour Golf 12.30am Golfing
World 1.30am Wonderful
World of Golf 3am PGA Tour
Classic 4am-4.30am Trilby
Tour Golf
SKY SPORTS 3
4.30pm Live ECB 40 League
Cricket 10pm WWE: Late
Night – Bottom Line 11pm
WWE: Late Night – Afterburn
12am WWE: NXT
2am-4.15am Live WWE: Late
Night – Raw
BRITISH EUROSPORT
6pm Live WTA Tennis 10pm
MotoGP 12am Eurogoals
12.30am-12.40am WATTS
ESPN
6.30pm Talk of the Terrace
8pm French Top 14 Rugby
Union 10pm Between The
Lines 10.30pm NFL Monday
Night Football Classics 1.30am
Press Pass 2010 2am Talk of
the Terrace 3.30am Between
The Lines 4am French Top 14
Rugby Union 4.30am-5.30am
UFC Unleashed
LIVING
7pm Four Weddings 8pm
Dating in the Dark 9pm
Britain’s Next Top Model 10pm
Four Weddings US 11pm
Criminal Minds 12am CSI:
Crime Scene Investigation
Patrol 3.50am The Jerry
Springer Show 4.40am Maury
5.30am-6am Home Shopping
BBC THREE
7pm 101 Ways to Leave a
Gameshow 8pm Snog, Marry,
Avoid? 8.30pm Baby Beauty
Queens 9pm Gavin & Stacey
9.30pm The Klang Show 10pm
EastEnders 10.30pm Underage
and Pregnant 11pm Family Guy
11.45pm Gavin & Stacey
12.15am The Klang Show
12.45am Baby Beauty Queens
1.15am 101 Ways to Leave a
Gameshow 2.15am The Real
Hustle: Celebrity Scammers
2.45am Snog, Marry, Avoid?
3.15am Tulisa – My Mum and
Me 4.15am Underage and
Pregnant 4.45am-5.15am The
Real Hustle: Celebrity Scammers
E4
7pm Hollyoaks 7.30pm
Friends 9pm One Tree Hill
Am I Normal? 11.05pm Missions 4.40am Days That
Shameless 12.10am Being Erica Shook the World 5.30am-6am
1.10am-6am Big Brother: Live How Does That Work?
HISTORY DISCOVERY HOME &
7pm The Crusades: Crescent HEALTH CORONATION STREET
and the Cross 8pm Decoding 7pm Portland Babies 8pm 10 ITV1, 8.30PM
the Past 9pm Egypt 10pm Years Younger 9pm 999 Nick lures a dejected Leanne to the
Cleopatra, Portrait of a Killer Emergency 10pm Deliver Me factory, insisting she deserves better
11pm The SS 12am Decoding 11pm Diagnosis X 12am 999 than Peter, but the couple are
the Past 1am Deep Sea Emergency 1am Deliver Me interrupted when Natasha bursts in.
Detectives 2am The Crusades: 2am Diagnosis X 3am 10 Years
Crescent and the Cross 3am Younger 4am Extreme
Royal Inquest 4am-5am The Pregnancy 4.30am From Here
Universe to Maternity 5am-6am
Bringing Home Baby
DISCOVERY
8pm How Do They Do It? SKY1
8.30pm How It’s Made 9pm 8pm The Biggest Loser US
How the Universe Works 10pm 9.50pm The Expendables
Time Warp: Filming a team of Special 10pm Law & Order
skipping champions. 11pm 11pm Bones 12am Road Wars THE BOSS IS COMING TO DINNER
Special Forces Heroes 12am 1.50am Oops TV 2.40am Road CH FIVE, 6PM
Deadliest Catch 1am Bear Wars 3.30am The 4400 An animal lover serving up an Iranian
Grylls: Born Survivor 2am 4.20am Project Runway meal and a woman with an ambitious
More Industrial Revelations 5.10am-6am Are You Smarter dinner menu compete to impress dog-
Europe 3am Weaponology Than a 10 Year Old? grooming expert Gill East.

COFFEE BREAKCopyright Puzzle Press Ltd, www.puzzlepress.co.uk


QUICK CROSSWORD
    

SUDOKU KAKURO
38 22 7 34 22 12
13 12 6
8 15   
15 23
Place the numbers from 1 to 9 in each empty cell so that each 13  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 45
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 9 8 4

above or to the left of it. 9
You can only use the digits 1-9 14 24   
  and you must not use the
5 14 22 39
10 11   
same digit twice in a block. 35
  The same digit may occur 11 13    
6 30
    more than once in a row or
column, but it must be in a
10
19
17
10 9
16

45
     separate block.
9 16
 
16 15 7

     ACROSS DOWN
1 Polite (5) 1 Clear the throat (5)
   
  WORDWHEEL I B
4 Bottle with a
narrow neck (5)
7 Person deemed to
2 Appearance conveyed
by a person’s face (6)
3 Person who inspires
Using only the letters in the Wordwheel, you have be despicable or others (6)
  ten minutes to find as many words as possible,
E N contemptible (2-3-2) 4 Crazes, cults (4)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters R 10 Impressive in scale (5)
11 Burn superficially
5 Bath’s river (4)
6 Rest on bended legs (5)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
O G or lightly (5)
12 Unit of gravitational
8 Former (3-4)
9 Emitting a long, deep
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
T H force (3)
13 Pledged to be
audible breath (7)
14 Sorting and allocating aid
QUICK CROSSWORD 3 1 7 2 4 1 2 7
married (9) on the basis of need (6)

6 3 / ( ( 1 & /
7 6 8 9 6 4 8 9 SUDOKU         
17 Outer edge of
a plate (3)
15 Glowing fragments of
wood left from a fire (6)
2 9 1 5 2         
+ 1 $ 6 7 + 0 $
2 3 9 3 8 8 9 19 Disreputable 16 Ceases (5)
2 0 , 7 , $ '         
8 5 / $ 8 5 ( / 8 4 3 7 2 9 5 1 6 wanderer (5) 18 Saying that is widely
        
7 + , ( ) % 7 ( 1 3 2 1 22 File for storing email accepted on its
        
6
0 ( $
3 =
6 8 5
7 (
(
5 0 6
1 3 2
5 9
4 8
1 6
7
3
6 9 5
8 3
WORDWHEEL         
on arrival (2-3)
23 Unwanted discharge
own merits (5)
20 Lowest female
& / 2 6 ( ' $ (         
$ 8 8 6 ( 1 ' 1 6 9 1 6 The nine-letter word of a fluid (7) singing voice (4)
1 4 3 2 8 9 7 4         
5 ( 1 ( * ( 2 $
was NINETIETH         
24 Frown (5) 21 Become boring, insipid,
( ' 7 , 1 & $ 1 7 9 5 8 2 3 5 1
25 Surrey racecourse (5) or tiresome (4)
 Sport
Murray beat Federer 7-5, 7-5 to defend the Toronto Masters and claim his first title of a rollercoaster year.
Great Scot Masters Federer
▲
TENNIS
BY FRANK DALLERES
BRITAIN’S Andy Murray boosted his
hopes of finally breaking his Grand
Slam duck at the US Open by success-
fully defending the Rogers Cup last
night.
Murray beat Roger Federer 7-5, 7-5
in Toronto to become the first man to
win the Canadian Masters series
event in successive years since Andre
Agassi in 1995.
The Scot’s victory constituted a
Cook backed to serve up improvement
as selectors stick with winning team
▲
CRICKET
ENGLAND selector Geoff Miller
admits Alastair Cook’s current strug-
gle with the bat has plunged the
opener into the biggest challenge of
his career.
Cook has only scraped 41 runs
from the first two Tests against
Pakistan, and juts 100 in total from
his last seven matches.
His toiling at the crease has even
led some to question whether the
vice-captain deserves to keep his
place, with an Ashes tour looming in
the coming months.
But Miller has thrown his weight
firmly behind Cook, retaining him
stern test of character after rainfall
twice delayed the conclusion of the
match during the second set.
But Murray eventually prevailed
against the 16-time Grand Slam win-
ner, proving that he has not suffered
from dispensing with coach Miles
Maclagan last month.
Murray started superbly, taking 12
of the first 16 points to open a 3-0 lead
but Federer broke back when he dou-
ble faulted when serving for the set at
5-4. Undeterred, and with a tie-break
looking likely, Murray broke straight
for this week’s third Test at the Oval
and insisting he will shake off his
malaise.
“We back Alastair to come through
this tough patch he is having,” he
said.
“Is it the toughest challenge of his
career? It probably is. It is a challeng-
ing time for him. But we know what
he is like as a character. He is a battler
and will battle his way through it.
“He scored runs in Bangladesh –
that is not so long ago – and we know
full well how hard he will try and
how determined he is to cross this
bridge. He will do it, I am sure.”
England selectors have taken the
unusual step of revealing not just
RED CARD FOR COLE ON REDS
LEAGUE DEBUT
DRAMA AS ARSENAL SNATCH LATE
DRAW AT LIVERPOOL: PAGE 22
back and served out to nail down the
set. The second set was only three
games old when rain came and dis-
rupted play for almost an hour, but
Murray showed mental strength to
hold serve. Another delay soon came,
however, and Federer returned rein-
vigorated. Yet Murray showed resolve
to hold on and broke at 5-5 before fin-
ishing off the Swiss great.
“It was obviously very difficult for
both of us,” said Murray. “Closing a
match out against Roger is difficult,
but with rain delays you have more
their squad but also their team well
in advance of Wednesday’s match,
and have stuck with the team that
won the first two Tests.
“We back our players and we want
then to continue on the road that
they’re on,” he added.
“They’re playing really well having
won six matches on the trot. We’ve
got a series to win, and now is not the
right time to be making drastic
changes.”
England team: Andrew Strauss (capt),
Alastair Cook, Jonathan Trott, Kevin
Pietersen, Paul Collingwood, Eoin Morgan,
Matt Prior (wkt), Graeme Swann, Stuart
Broad, James Anderson, Steven Finn.
Bowling cover: Tim Bresnan
Picture: PA
time to think about it.”
The world No4 beat Rafael Nadal,
who tops the rankings, in the semi-
finals, and is only the fifth man to
beat both the Spaniard and Federer
in the same event. Murray’s assertive
performances in Toronto make him
an even hotter tip for the US Open,
which gets underway at Flushing
Meadows on 30 August. The 23-year-
old, who now has five Masters titles to
his name, has struggled for consisten-
cy this year and was without a tour-
nament win until last night.
SPORT | IN BRIEF
Johnson mulling Stevens recall
RUGBY UNION: Martin Johnson has left
the door open for Matt Stevens to make
a controversial return to the England
squad.
Johnson insists Stevens will be consid-
ered for next year’s World Cup if he
proves his form and fitness after his two-
year drugs ban expires in January.
“He has got to learn how to play rugby
again. He has got to do that and play,”
said Johnson. “If anyone is playing well in
the Premiership with English qualifica-
tions we will consider them. Are we
going to pick him on what's happened or RUGBY LEAGUE: Huddersfield denied
whether he is good enough?”
Adlington claims 400m gold
SWIMMING: Olympic champion Rebecca
Adlington ensured the European
Championships finished on a high for
Great Britain by claiming gold in the
400m freestyle in Budapest.
Adlington trailed a disappointing sev- over Wakefield.
21
WINNERS &
LOSERS
A WEEKEND is a long time in sport,
as this lot will attest. But while for
some it was a few days to remember,
others may wish they had never set
foot out of the house.
IAN HOLLOWAY
Few begrudged Olly a
crack at the top flight
after a career manag-
ing in the lower
leagues, but even his
biggest fans could not
have guessed he’d lead
Blackpool to a 4-0 win
in their opening game.
WINNER
TYSON GAY
First he ended Usain
Bolt’s two-year unbeat-
en streak over 100m,
then on Friday he ran
the fastest time over
the same distance of
anyone this year.
Perhaps Bolt is not
WINNER untouchable after all.
DOMINIC CORK
Veteran Cork led
Hampshire to the nar-
rowest of victories in
the Twenty20 Cup,
beating Somerset by
virtue of losing one
wicket fewer. And all
without the snubbed
WINNER Kevin Pietersen too.
YUVRAJ SINGH
A sportsman’s life is lit-
tlered with injuries and
illnesses, but spare a
thought for Yuvraj,
who misses India’s one-
dayer with Sri Lanka
because he has dengue
fever. Not even Darren
Anderton had that one.
LOSER
IAN POULTER
One of England’s best
bets for success at the
USPGA, Poulter had his
bid scuppered by a
chest infection that
forced him to withdraw
before his final round
and fly back to his sick-
bed in Florida.
LOSER
enth in the 800m last week but bounced
back to help GB end third in the medals
table, with six golds, six silvers and six
bronzes.
Gemma Spofforth, Fran Halsall, Kate
Haywood and Amy Smith took gold in
the 4x100mm medley relay after Russia’s
winning quartet was disqualified.
Haywood also enjoyed silver medal
success in the 50m breaststroke, while
Ellen Gandy claimed bronze in the 200m
butterfly on her 19th birthday.
Wigan denied top spot
Wigan the chance to clinch top spot in
Super League by coming from behind to
beat the leaders 18-16.
Two tries from Leroy Cudjoe proved
decisive for the visitors at the DW
Stadium, while elsewhere, Matt King’s
hat-trick of tries kept Warrington’s hopes
of a top-two finish alive with a 36-18 win
 22 Sport | Football CITYA.M. 16 AUGUST 2010

Results
Ngog 46
BARCLAYS PREMIER LEAGUE
Liverpool.......................(0) 1 Arsenal................................(0) 1
Reina 90 (og)
Att: 44,722
Reina howler
lets Gunners
P W D L F A GD Pts
Chelsea 1 1 0 0 6 0 6 3
Blackpool 1 1 0 0 4 0 4 3
Aston Villa 1 1 0 0 3 0 3 3
Wolves 1 1 0 0 2 1 1 3
Blackburn 1 1 0 0 1 0 1 3
Birminghm 1 0 1 0 2 2 0 1
Sunderland 1 0 1 0 2 2 0 1

off the hook

Arsenal 1 0 1 0 1 1 0 1
Liverpool 1 0 1 0 1 1 0 1
Bolton 1 0 1 0 0 0 0 1
Fulham 1 0 1 0 0 0 0 1
Man City 1 0 1 0 0 0 0 1
Tottenham 1 0 1 0 0 0 0 1
Man Utd 0 0 0 0 0 0 0 0
Newcastle 0 0 0 0 0 0 0 0
Stoke 1 0 0 1 1 2 -1 0
Everton 1 0 0 1 0 1 -1 0
West Ham 1 0 0 1 0 3 -3 0 off in agony but recovered to impress
Wigan
West Brom
1 0 0 1 0
1 0 0 1 0
4 -4 0
6 -6 0
LIVERPOOL 1 in the second half, only to then also
be dismissed for a second yellow card
NPOWER CHAMPIONSHIP in a chaotic finale.
Nottm For......................(1) 1 Leeds......................................(1) 1
Blackstock 9 Sam 36
Att: 24,986
ARSENAL 1 “He will be the first one not to try
and apportion blame to other people,
P W D L F A GD Pts so of course he’s taken it hard,” said
Millwall 2 2 0 0 7 0 7 6
▲

QPR 2 2 0 0 7 0 7 6 PREMIER LEAGUE Hodgson of Spanish stopper Reina.

Coventry 2 1 1 0 4 2 2 4 BY FRANK DALLERES “But I thought he played well today.
Ipswich 2 1 1 0 4 2 2 4 His concentration was good, his kick-
Doncaster 2 1 1 0 3 1 2 4
Watford 2 1 1 0 5 4 1 4
LIVERPOOL boss Roy Hodgson refused ing was excellent. There are an enor-
Cardiff 2 1 1 0 3 2 1 4 to blame Pepe Reina after the goal- mous number of positives. The one
Burnley 2 1 1 0 2 1 1 4 keeper’s late howler ensured Arsenal negative, unfortunately, was he let in
Swansea 2 1 0 1 4 2 2 3 shared the spoils of an absorbing a goal which in normal circum-
Crystal Pal 2 1 0 1 3 3 0 3
Derby 2 1 0 1 3 3 0 3 Premier League opener at Anfield. stances he would have kept out.”
Norwich 2 1 0 1 3 3 0 3 Reina spilled the ball into his own Hodgson hinted he would appeal
Scunthorpe 2 1 0 1 2 2 0 3 net during stoppage time, just as it Cole’s dismissal, adding: “He is devas-
Hull 2 1 0 1 2 4 -2 3
Barnsley 2 1 0 1 1 4 -3 3 seemed David Ngog’s strike would tated. He was desperate to do well,
Leeds 2 0 1 1 2 3 -1 1 hand Hodgson a major scalp on his and then suddenly he gets sent off.
Leicester 2 0 1 1 2 3 -1 1 first top-flight Reds match in charge. Replays suggest to me he was a little
Reading 2 0 1 1 2 3 -1 1 His dream debut was spoiled by bit unlucky.”
Nottm For 2 0 1 1 1 2 -1 1
Middlesbro’ 2 0 1 1 1 3 -2 1 Arsenal’s equaliser, but a far worse Arsenal manager Arsene Wenger, just kept going and throwing more handed a numerical advantage when
Portsmouth 2 0 1 1 1 3 -2 1 league bow befell Joe Cole, the meanwhile, insisted his side’s point and more people forward and in the Cole saw red.
Bristol City 2 0 1 1 1 4 -3 1 Liverpool midfielder earning a was just reward for his decision to end we got a deserved equaliser.” But it was Liverpool who seized the
Sheff Utd 2 0 1 1 1 4 -3 1
Preston 2 0 0 2 0 6 -6 0 straight red card before half time for end the game with four forwards and Arsenal, without captain Cesc initiative seconds after the re-start,
RUGBY LEAGUE
a lunge on Laurent Koscielny. two attacking midfielders. Fabregas, Robin van Persie and Alex Javier Mascherano punishing sloppy
The Gunners defender, also mak- “They intelligently took the fluen- Song, dominated the first half with- defending to feed Ngog, whose rising
ENGAGE SUPER LEAGUE
Salford........................................18 Hull K R............................................44 ing his first league start, was carried cy out of the game,” said Wenger. “We out creating many chances, and were shot beat Manuel Almunia at his near
Wakefield..................................18 Warrington....................................36
Wigan..........................................16 Huddersfield..................................18

TODAY’S DIARY
(Football 7.45pm unless stated)
Barclays Premier League
Man Utd v Newcastle (8pm) ..................................................................................
Liverpool board won’t be rushed into selling club
CRICKET
Triangular Tournament: Sri Lanka v India (Dambulla). LIVERPOOL managing director funds in place to purchase the Anfield “I would not expect it to be a lifetime a spokesperson saying the bank “con-
First One Day Internationals: Scotland v Afghanistan (Ayr), Christian Purslow concedes the club outfit, who have debts of more than – but I would not expect it to be tomor- tinues to have confidence in the sale
Ireland v Holland (Dublin).
needs to be sold urgently but has £280m. row either. We have just received some process”.
LV County Championship - Division One—day 1 of 4: warned they will not be pressured into And Purslow said yesterday: “We written bids at this stage, and it would Hicks and Gillett face a bill for an
Durham v Yorkshire (Emirates Durham ICG),
Nottinghamshire v Warwickshire (Trent Bridge). Division rushing a deal. have had a number of bids for the club. be wrong to characterise anybody as a extra £60m if they do not sell the club
Two—day 1 of 4: Glamorgan v Middlesex (The SWALEC Chinese businessman Kenny Huang We will take time to examine those front-runner.” by 6 October, when their loan to RBS is
Stadium), Worcestershire v Surrey (New Road), and Syrian Yahya Kirdi have both held extremely carefully. Second to that is to Purslow declined to comment on due to be repaid. It had been hoped the
Northamptonshire v Gloucestershire (Northampton).
discussions about buying the Reds from sell the club as soon as possible. suggestions that Royal Bank of club could find a buyer before the new
Clydesdale Bank 40 - Group A: Somerset v Lancashire American pair Tom Hicks and George “We will make sure we take our time. Scotland, to whom Hicks and Gillett season but a solution still looks some
(Taunton).
Gillett. I am not going to put a time limit on it. owe £237m, are preparing to take over way off. Hicks and Gillet are thought to
But doubts have been raised about The challenge now is to sort the wheat the club amid growing fears a buyer be asking for £800m, a price tag that
SPORTS EDITOR JON COUCH their ability to prove they have the from the chaff. will not be found. RBS denied the claim, has so far proved prohibitive.
email sport@cityam.com

Maradona interest World Cup star Ramires Carrick warns

United as Toon
itching to begin career as
in Aston Villa job Chelsea kick off in style
opener looms
PREMIER LEAGUE
▲

“He is very attracted to English foot-

▲

PREMIER LEAGUE
BY FRANK DALLERES ball and the way of life in your coun- MANCHESTER United midfielder
try and I know he would be very ing,” said the World Cup star. Michael Carrick has warned his team-
▲

PREMIER LEAGUE
DIEGO Maradona’s agent insists the willing to move there. “With a little bit of time I will get to mates they cannot afford to make as
BY FRANK DALLERES
former Argentina captain and coach “He loves the English countryside know everything and I am sure I will many mistakes as last season.
would love to succeed Martin O’Neill and your respect for privacy, so he CHELSEA’S latest signing, Brazil mid- be very happy here. Just to think that United host Premier League new-
as Aston Villa manager. would be very happy there, especially fielder Ramires, admits he is raring to I will wear Chelsea’s shirt is a dream comers Newcastle tonight in their
Caretaker boss Kevin MacDonald is at a big club like Aston Villa. get stuck into the Premier League come true for any player. opening match as they begin their
currently in charge at the Midlands “If the owner Randy Lerner wants after completing his protracted move “I know it is a very strong, competi- campaign to retrieve the title from
club after O’Neill walked out last to make him a serious offer, I am sure from Benfica. tive league, but I just hope that I can Chelsea.
week following a breakdown in rela- he would get a very positive response. Ramires did not sign in time to fea- adapt as fast and as well as I can to And Carrick, who was born on
tions with owner Randy Lerner. “Diego is currently talking with a ture on Saturday as the champions give my best.” Tyneside, said: “Last season was a bit
MacDonald enjoyed the perfect number of clubs in Europe, including began their defence in style with a 6-0 Striker Didier Drogba netted a hat- of a freak in terms of how many
start to his reign by beating West another one in England, about a man- thumping of top-flight newcomers trick in the opening match landslide, games both us and Chelsea lost and
Ham 3-0 in Saturday’s Premier League agement role and is looking at his West Brom. And the 23-year-old but expects the Blues to find this sea- how many points were dropped.
opener, but no decision has been options carefully.” admits he worried at one stage son tougher than last year. “The previous few years there was-
taken regarding a permanent MacDonald will be in charge for whether he would ever seal his “It is important for us to keep play- n’t much margin for error and com-
appointment. Thursday’s Europa League clash with switch, which was finalised after a ing the way we did last year, but we petition is pretty fierce again now.
Maradona’s representative Walter Rapid Vienna, and midfielder Stiliyan successful work permit hearing. must also try to improve because it is Teams who have finished around the
Soriano said: “I think Diego would be Petrov hopes he keeps the job. “I hope “I was a little bit worried because going to be harder,” Drogba said. “All Champions League places are looking
very open to the idea of coming to we can help him take that job,” said obviously it dragged on a little bit, but of the other teams are improving in to break through and you really have
England and managing Aston Villa. the Bulgarian. “We are behind him.” I tried to keep calm and do my train- terms of bringing in new players.” to start firing from the off.”
CITYA.M. 16 AUGUST 2010
Reina spilled the ball
into his own net in
stoppage time.
Picture: GETTY
post. Hodgson’s 10 men successfully
kept the Gunners at bay, save for a
Tomas Rosicky shot tipped over, until
injury time, when Marouane
Chamakh challenged Reina for a
cross and the ball hit the post before
cannoning in off the keeper.
FAVOURITES TO REPLACE CAPELLO
HARRY REDKNAPP
Would love England job
9 and is arguably best
qualified, having enjoyed
success at Portsmouth
and now Tottenham. Off-
4 field issues may count
against him, however.
FA: Next England boss will be English
▲
INTERNATIONALS
BY FRANK DALLERES
ENGLAND chiefs have fuelled specula-
tion over who will succeed Fabio
Capello by confirming that the next
manager of the national team will be
an Englishman.
Capello, already under pressure fol-
lowing a dreadful World Cup cam-
paign, attracted fresh criticism last
week for clumsily declaring David
Beckham’s international career over.
STUART PEARCE
Has been groomed as
7 future England boss in
role as Under-21 coach,
but jury still out on his
management credentials.
2 May be in with better
shout further down line.
Team England managing director
Adrian Bevington admits communi-
cation between the manager and play-
ers could be improved, and concedes
the Italian may need help in that
department. That is unlikely to be an
issue, however, if England’s next boss
is a home-grown candidate, which
Bevington says is the objective.
“That is the view in the discussions
I have been involved in,” he said yes-
terday. “We enjoyed working with
Sven-Goran Eriksson, and we have
Sport | Football
ROY HODGSON
Has only just landed
6 plum job at Liverpool so
would be unlikely to con-
tend in next two years. If
Capello sees out his con-
1 tract, however, time may
be right for Hodgson.
Fabio Capello in now. I think the
English team should be managed by
an English manager.”
Tottenham boss Harry Redknapp is
the bookmakers’ favourite to succeed
Capello while Stuart Pearce, the
Under-21 manager, is also strongly
fancied. Blackburn chief Sam
Allardyce was interviewed by the FA
before Steve McClaren got the job in
2006. Ex-Aston Villa boss Martin
O’Neill would be a prime candidate,
were he not Northern Irish, while
23
SAM ALLARDYCE
Still bitter at missing out
11 on job in 2006 and does
not hold out much hope
of a reprieve, but has his
cheerleaders and, owing
1 to lack of other options,
will always be mentioned.
respected Liverpool Roy Hodgson is
also likely to be in the frame.
Capello’s stock has fallen dramati-
cally since the World Cup, although
his contract runs until 2012.
“A lot of people have a very differ-
ent view of Fabio Capello to the one
they had before the World Cup,”
added Bevington. “Our job is to sup-
port him as best we can. Maybe we
can help him, and maybe now is the
time to improve communications
between manager and players.”