Professional Documents
Culture Documents
▲
EXCLUSIVE
BY JULIET SAMUEL
THE UK treasury made more than
BANKING £2.29bn from Goldman Sachs last year,
▲
Police look at
Picture: PA
Brown claims
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
MEDIA The allegations finally toppled
▲
Distribution helpline and 2007, when he was chancellor. ership rules if it is found it bought off incorporating in accordance with UK
If you have any comments about the distribution BY RICHARD PARTINGTON
of City A.M. Please ring 0207 015 1230, or email Energy and climate change secre- potential witnesses in a in a future company law and by officially register-
distribution@cityam.com tary Chris Huhne ramped up pressure criminal prosecution. However, sources THE COMPANY formed following the ing as a business with Companies
on News Corp – owner of the News of close to media watchdog Ofcom told merger of British Airways with Spanish House.
Editorial Statement the World – casting doubt on the City A.M. this scenario is “far fetched”. carrier Iberia will today become the IAG however is incorporated under
This newspaper adheres to the system of newspaper’s defence that a single first wholly foreign incorporated firm Spanish law and pays taxes in Spain,
self-regulation overseen by the Press Complaints “rogue reporter” was responsible for Former Prime Minister ever to trade on the London Stock yet is headquartered in London and
Commission. The PCC takes complaints about the the hacking. He told the BBC: “It Exchange as a FTSE100 firm. will primarily list on the London Stock
editorial content of publications under the Editor’s Gordon Brown has
Code of Practice, a copy of which can be found at seemed to me clear that the number International Consolidated Airlines Exchange.
www.pcc.org.uk of people that were being hacked emerged as a potential Group (IAG) will fly into the FTSE100 as BA and Iberia will retain their
Printed by Newsfax International,
clearly was not consistent with it target of News of the one of the UK’s top companies, despite brands as part of the $8bn (£4.9bn)
Beam Reach 5 Business Park, being one rogue reporter who hap- World phone hacking its official status as a Spanish firm. merger deal, and will have a combined
Marsh Way, Rainham, Essex, RM13 8RS pened to be the royal correspondent.” Overseas companies traditionally 419 aircraft flying to 205 destinations.
Hayward in talks to
Tony Hayward is
in preliminary
talks about joining
the new Glencore
board of directors
Picture: REUTERS
taking a non-executive role, accord-
▲
COMMODITIES
BY MARION DAKERS ing to reports yesterday.
Glencore is meeting with a number
FORMER BP chief executive Tony of candidates to oversee the firm if it
Hayward is in early talks about join- floats either in London or Hong Kong
ing the board of commodities trader during the next year, one source told
Glencore as part of its planned initial City A.M.
public offering, it emerged yesterday. The company declined to comment
Hayward, who is a non-executive on the report.
director for Russian oil venture TNK- Glencore would have to reshuffle
BP, recently met with Glencore chief its board if it floats to comply with
executive Ivan Glassenberg to discuss corporate governance rules.
Finance Bill
safe as Irish
coalition fails
▲
EUROZONE
government after an election. Both
BY ELIZABETH FOURNIER parties have campaigned on possible
IRELAND’S economy was once again amendments to the Finance Bill,
thrown into turmoil yesterday after- which contains unpopular spending
noon, as the country’s minority Green cuts and tax increases to fulfill the
Party pulled out of its coalition with terms of Ireland’s EU/IMF bailout.
Fianna Fáil, destroying the ruling However, the Bill’s key terms are
party’s majority and making an early unlikely to change, with the Labour
election likely. party vowing to withdraw its planned
But the Green Party made it clear motion of no confidence tomorrow if
that passing the Finance Bill remained the government can push the legisla-
its priority, and urged Prime Minister tion through before Friday.
Brian Cowen to accelerate the legisla- Despite the ultimatum, Cowen
tion so that it can be passed this week. admitted that meeting that deadline
Speaking in Dublin, leader of the was unlikely, saying it was “not possi-
Green Party John Gormley said that ble to get it done in a week”.
his party’s “patience had reached an And despite assurances that the
end” with Fianna Fáil’s control of the Finance Bill will be passed before the
Irish Government, citing “continuing election, analysts say Ireland is lucky
doubts, the lack of communication that EU support means it won’t have
and the breakdown in trust,” as the to access Eurozone markets in the
final straws that led to its withdrawal weeks ahead, with sentiment likely to
from the coalition. have plummeted over the weekend.
Without the Green’s support, “The markets may actually be mar-
Fianna Fáil is left without a majority, ginally reassured that there is the
forcing Cowen to dissolve his govern- lending programme in place from the
ment and call a general election. EU and IMF – in the absence of that it
With Fianna Fáil opinion polls at an would be a very tall order for the
all-time low, the opposition Fine Gael NTMA (Ireland’s debt agency) to go to
and Labour parties are widely expect- the bond markets,” said Austin
ed to form the country’s next coalition Hughes, chief economist at KBC Bank.
ECONOMICS
BY JENNY FORSYTH rising inflation automatically cutting
the deficit.
HIGH inflation is not a cure for “There are numerous ways infla-
Britain’s deficit woes, according to tion can affect the public finances,
Robert Chote, the chairman of the some positive and some negative, so
office for Budget Responsibility (OBR). we cannot say for sure whether high-
In an interview with the Financial er inflation lowers or raises the pro-
Times, he also gave his opinion that jected deficit,” he said.
cutting petrol duties to counteract Chote, who recently moved to the
soaring fuel prices would make pub- new role from his former job as direc-
lic finances “less stable rather than tor of the Institute for Fiscal Studies,
more stable”. said the OBR plans to start giving
Many believe higher inflation monthly updates on public finances.
boosts the public finances by increas- The body is now preparing the eco-
ing tax revenues. However Chote nomic forecast for the Budget.
4 News CITYA.M. 24 JANUARY 2011
Members of the
Independent
Commission on
Banking
DAVOS 2011 26-30 JANUARY
Vickers rules
out break-up
ure on the basis that “retail cus-
▲
BANKING
BY JULIET SAMUEL tomers have no effective alternatives
to their banks for vital financial serv-
SIR John Vickers, chair of the ices”.
Independent Commission on The speech signalled that the ICB is
Banking (ICB), ruled out breaking up considering “forms of separation”
the financial industry into “narrow between retail and wholesale bank-
banks” on Saturday in his first official ing operations, including subsidiari-
speech since the commission was sation, in which retail and
convened. investment banks operate separately
But Vickers’ speech, which gave a but remain legally under the same
glimpse of the ICB’s thinking three ownership.
months before its preliminary report Vickers also commented on the
is due out, did discuss how to “ring- problem of implied government guar-
fence the retail banking activities of antees for banks that are “too big to
systemically-important institutions”
from their wholesale activities.
Despite dismissing the idea of “nar-
fail”. “This distortion... should be neu-
tralised or contained,” he said,
adding: “Credible resolution would
DAILY COVERAGE OF THE WORLD ECONOMIC FORUM
row banks”, whereby banks with
retail deposits are largely banned
seem to require at least some form of
separability (between retail and
BROUGHT TO YOU BY CITY A.M. AND AVIVA
from lending, Vickers emphasised wholesale).”
that “the policy challenges for retail But he also sounded a warning on
and investment banking are some-
what different”. He analysed differ-
ent ways of insulating retail
consumers from a possible bank fail-
“the unintended consequence” of
some current regulations, including
tax incentives that make debt a more
attractive funding option than equity.
FIND OUT
WHAT THE WORLD’S BUSINESS
SIR JOHN VICKERS
CHAIR, ICB
After two years at the BoE, he moved
to become director general of the
Office of Fair Trading and from 2007
to last year, he was president of the
LEADERS AND POLITICIANS
Royal Economic Society.
While head of the OFT, he oversaw an
investigation of charges by store card
providers and called for an inquiry
ARE TALKING ABOUT
into LSE’s proposed merger with
SINCE leaving a two-year post at
Shell as a financial analyst, Sir John
Euronext.
He has spent much of his career
See tomorrow’s paper for an exclusive preview
Vickers had spent most of his career studying the economics of competi-
in academia before moving into eco- tion and regulation, writing extensive-
nomic policy-making. ly on patent law, price signalling and In association with
He is a fellow of All Souls College, vertical markets.
Oxford and was an economics profes- He is now charged with designing the
sor at the university for 12 years until basis of a new regulatory framework
he went on leave to become the Bank for the entire UK banking industry.
of England’s chief economist in 1998. Juliet Samuel
CITYA.M. 24 JANUARY 2011 News 7
T
he next couple of weeks, ahead Anglo Irish Bank just two months Markets, says that had there been a regarding the Irish banks is eliminat- One thing is sure: whoever becomes
of the upcoming Irish general before the bailout was announced. vote of no confidence ahead of the ed. We have seen an exodus of the next Irish prime minister has a
election, are going to be crucial With an expected taxpayer bill of bailout, things may have been differ- investors over the last year; Bank of humongous job ahead.
for Fianna Fail, the ruling Irish €34bn, Anglo Irish is the Irish bank ent. But the terms of the bailout are in Ireland may have to sell off parts of the Louisa Bojesen is a co-anchor of CNBC’s
party. Prime Minister Brian Cowen perceived to be the most toxic. While motion now, although the opposition group, and debt restructuring could European Closing Bell.
Cocoa to rise
as Ivory Coast
halts exports
the Federation of Cocoa Commerce
▲
COMMODITIES
BY MARION DAKERS yesterday to help clarify the trading
restrictions.
THE PRICES of cocoa and coffee could The FCC and European Cocoa
rise sharply this morning after the Association said in a joint statement
president-elect of the world’s biggest last night that the situation in the
producer of the beans declared it had Ivory Coast has “created a very testing
suspended exports. environment for the cocoa trade” and
The president-elect of the Ivory that it is working with those in the
Coast, Alassane Outtara, yesterday industry to resolve issues arising from
ordered exporters to suspend opera- the suspension.
tions for a month from today in an “Time, patience and a common
attempt to cut off funding from rival sense approach to the difficulties and
Laurent Gbagbo, who the UN said lost delays that may arise are required,
a presidential election in November. but most importantly, all those
The Ivory Coast produces nearly 40 whose interests are impacted should
per cent of the world’s cocoa accord- remain calm in order that we sustain
ing to UN figures, and Outtara hopes no long term damage to Ivorian farm-
the economic fallout from an export ing communities and the cocoa
ban will pressure Gbabo to step down. industry,” the trade bodies said.
The price of cocoa has risen 13 per The European Union has tightened
cent since the Ivory Coast’s disputed its economic sanctions against the
election, and stood at $3263 (£2,025) Ivory Coast to try and unseat Gbabo,
per tonne last week, according to the while other West African states have
International Cocoa Organisation. warned that they are prepared to use
The price of cocoa hit a 33-year force to oust Gbabo’s government.
high of £2,732 a tonne mid-way African leaders have also asked
through last year. Outtara to name a new head of the
The world’s largest traders were region’s central bank, in a further
reportedly planning an emergency attempt to remove Gbabo from
conference call with industry body power.
M&A
BY JENNY FORSYTH competing head-to-head to acquire
mid-sized European internet travel
PERMIRA and Axa Private Equity are agencies.
planning to make a joint €500m Last year Axa outbid Permira to buy
(£425.5m) bid for Opodo tomorrow, as Go Voyages. Conversely Permira beat
they seek to compete against US inter- Axa in the fight to buy the Barcelona-
net travel giants Expedia and Orbitz. based online travel group eDreams.
However the two private equity But after teaming up, the two
groups are likely to face bidding com- groups reportedly plan to buy Opodo,
petition from their US rival Carlyle, which is being sold by Amadeus IT
according to the Financial Times. Holding, and combine it with
The newspaper added that people eDreams and Go Voyages to create a
familiar with the auction believe European travel behemoth.
Permira an Axa are favourites. Opodo accounts for just four per
Before joining forces to bid for cent of Amadeus’ total revenue.
8 News CITYA.M. 24 JANUARY 2011
TAXATION
BY RICHARD PARTINGTON receive new tax demands. ments paid large bonuses to staff.
As many as 450,000 pensioners A spokesperson for HMRC said: “We
BONUSES received by tax officials will were told to pay more tax at the end have said we will restrict perform-
be curbed in line with the rest of the of last year after HMRC made mis- ance related payments from 2011-12
public sector, following revelations takes on their tax codes. and are conducting a review into pay
that top HMRC staff received a The payments to staff were made structures. A two-year public sector
bumper £13m bonus payment under contracts agreed under the pay freeze starts in 2011.
between them last year. previous government administration “The number of Senior Civil
The Revenue paid out almost and will now be curbed, as Whitehall Servants who will receive a bonus will
£800,000 more on staff bonuses last departments prepare to clip expendi- also be dramatically reduced in
year than it did in 2009, despite a ture. future in line with commitments
blunder in the run up to Christmas Freedom of Information requests made by the Prime Minister.”
Tens of thousands of Belgians took to the streets yesterday to shame political leaders who
have failed to form a government more than seven months after an election and left the
country at the mercy of financial markets. Organisers of the “Shame: no government,
great country” protest said up to 50,000 people had joined the march through Brussels.
Police put the figure at 34,000. Picture: GETTY
Portugal puts
faith in Silva
measures and pull the the country
▲
EUROZONE
BY HARRY BANKS out of a debt crisis.
The President’s post is largely cer-
PORTUGUESE President Anibal emonial but he does have the power
Cavaco Silva won a second term in to dismiss the Prime Minister and
an election yesterday, television exit dissolve parliament.
polls showed, a result that should Should Portugal have to follow
ensure short-term political stability eurozone weaklings Greece and
as the cash-strapped government Ireland and go the EU and
fights to avoid an international International Monetary Fund for a
financial bailout. rescue package, Cavaco could be
The country’s leading television under pressure from his own party,
stations put Cavaco Silva’s share of which is in opposition to the
the vote at around 55 per cent com- Socialists, to do so.
pared with about 19 per cent for But after casting his vote in a
Manuel Alegre of the ruling chilly Lisbon, Cavaco Silva, a former
Socialists, his closest competitor in economics professor who was prime
a field of six. minister from 1985 to 1995, said he
Alegre conceded defeat minutes did not want to speculate about
later. that possibility.
Cavaco Silva, of the centre-right “I am a president in favour of sta-
Social Democrats, is expected to bol- bility. I consider that it is very
ster Socialist Prime Minister Jose important for Portugal to have
Socrates’ drive to cut the budget political stability to solve its prob-
deficit through tough austerity lems,” he said.
EUROZONE
the short-term pain caused by the aus-
GREECE’S central banker said yester- terity measures Greece is implement-
day that talk of debt restructuring is ing.
hurting the country as it struggles to “The political and economic impact
exit the fiscal crisis that has shaken of debt restructuring would far exceed
the eurozone. the short-term pain of fiscal adjust-
“I believe that even mere talk of ment. Debt restructuring would spark
debt restructuring hurts the country,” an uncontrollable chain reaction
Bank of Greece governor George which would start a new, long-term
Provopoulos told local Greek press. cycle of a lack of credibility for the
He said the negative impact of a future of Greece’s economy,” he said.
CITYA.M. 24 JANUARY 2011 News 9
BY MARION DAKERS first to highlight the mystery of the Green and Formula One tycoon
£140m penthouse owner last week Bernie Ecclestone were among 350
THE DEVELOPERS of One Hyde Park and queried whether the developers guests invited to the sumptous
have tried to lead by example by may have purchased other apart- launch party of the Knightsbridge
snapping up two of the luxury flats ments. development last week.
in the complex in Knightsbridge, it Candy & Candy has not disclosed The retail outlets on the ground
emerged yesterday. the identity of the buyer. floor of the complex have been let to
Christian Candy, one half of prop- The company maintained its carmaker McLaren, Rolex and Abu
erty firm Candy & Candy, has refusal to name the buyer yesterday, Dhabi Islamic Bank.
bought a single-storey penthouse for citing a confidentiality agreement. The One Hyde Park scheme was
£31m, according to press reports Candy & Candy said last week that started in 2006 and cost close to
based on Land Registry documents the penthouse was bought by an £1bn to develop.
yesterday. anonymous party who came A spokesper-
This would be over £100m less through the One Hyde Park website. son for Candy &
than the asking price for the most While the developers have Candy said the
expensive apartments in the com- announced that contracts have been identity and
plex. exchanged on 60 per cent of the 86 amount paid for
Sheik Hamad Bin Jassim Bin Jaber flats available, it is thought that just each flat was
al-Thani, the Qatari Prime Minister two finalised sales have made it onto private as part
who helped fund the development the Land Registry to date – both of of a confiden-
through his Guernsey-based Project them bought by the developers. tiality agree-
Grande company, bought a three- A director at Savills, one of the ment and
storey penthouse flat in August. agents tasked with marketing the declined to
But there has also been intense flats, told The Capitalist last week the comment on
speculation as to the identity of the new owner of the most expensive the Land
purchaser of the most expensive penthouse is not one of the develop- Registry public
unit, a £140m penthouse apartment. ers. records. The Candy brothers celebrate the launch Picture: REUTERS
Renault chief:
spy case is not
Etihad mulls a bid Firms struggling to stay
afloat up by 20 per cent
over technology for Virgin Atlantic
▲
ECONOMY
more than £52.7bn.
THE number of UK companies strug- Companies reliant on government
▲
AUTOMOTIVE TRANSPORT
that we talk regularly and frequently gling to stay solvent jumped 20 per contracts were hit hardest, with more
RENAULT chief executive Carlos THE head of Etihad Airways has writ- to many airlines and a range of other cent in the last quarter of 2010, data than 61,000 becoming seriously
Ghosn has revealed that alleged ten to Virgin Atlantic to express “top businesses from all over the world shows today. indebted in the quarter, 24 per cent
industrial espionage in the compa- level interest” in taking over the air- about business issues and opportuni- Nearly 148,000 companies had more than in the third quarter.
ny’s electric cars programme centred line, according to reports at the week- ties,” said a spokesperson for Etihad. insolvent accounts, a court action The number of distressed compa-
on its business model rather than end. Virgin said it continued to work against them or a wind-up petition nies was four per cent higher than in
technology. Sir Richard Branson’s airline hired with Deutsche Bank to assess growth filed by the end of 2010, up from the last three months of 2009, when
Ghosn told a French newspaper the Deutsche Bank last year to look at opportunities. “This study is at a very 123,361 in the third quarter, the Red 141,527 firms faced financial difficul-
legal investigation would take several options for the company, which could early stage so there is no further com- Flag Alert analysis by turnaround spe- ties at the height of the recession.
months to complete and that he was include a merger or takeover. ment to make at this time,” a cialist Begbies Traynor found. Begbies Traynor chairman Ric
“surprised and shocked” by the affair. Etihad, which is based in Abu Dhabi spokesperson said in an e-mail. Companies in the “critical” stage of Traynor said the data showed compa-
Three of the company’s executives and is chaired by Sheikh Hamed bin Branson said recently that he might distress, which had been issued either nies “demonstrating real signs of dis-
have been fired over the allegations, Zayed Al Nahyan, refused to confirm sell his 51 per cent in the carrier. The county court judgments – lodged by tress.” “Trade creditors are losing
which surfaced in August after the reports in the Sunday Times. remaining 49 per cent is owned by creditors against insolvent companies patience with their debtors and in
firm received an anonymous letter. “We have no comment other than Singapore Airlines. – or wind-up petitions, owed creditors need of collecting cash,” he said.
The Capitalist
10 CITYA.M. 24 JANUARY 2011
EDITED BY
STEVE DINNEEN
GOT A STORY? EMAIL
thecapitalist@cityam.com
A LITTLE
TOO SOCIAL
NETWORK?
YOU might think former Facebook presi-
dent Sean Parker, who described Justin
Timberlake’s portrayal of him in the
movie The Social Network as “a complete
fiction,” may have reason to be slightly
annoyed.
Trousersnake plays Parker as a SIX thirsty city workers indulged in a
Machiavellian, cocaine snorting wise guy cocktail swilling session at
who impresses a young Mark Zuckerberg Odette’s Restaurant in Primrose Hill last
by dating a Victoria’s Secret model. Thursday to celebrate bonus day. And
So is he bitter? Certainly not: “I kind of A Victoria’s Secret their big bonus splash-out also involved a
wish my life were that cool,” he said.
The Social Network won three Golden
MONEY FOR OLD PAPER model (left), possibly bottle of Puligny Montrachet at £90 a
pop.
The Capitalist has always wondered why so the one who never
Globe awards last week – for best drama, many paper destruction lorries are seen dated former Ironically, the wine is known as “Scabby
best director David Fincher and best loitering in the Square Mile, and recent Facebook president Hill” (Mont Rachaz) but we’re not sure
screenplay, by Aaron Sorkin – and is figures explain why. Shred-It, the receipt Sean Parker (right). this was reflected in their other indul-
tipped to sweep the board at the Oscars. and paper destroyer, has seen its revenues gences, which included three classy bot-
Parker is no stranger to controversy. He soar 18 per cent to £35m. It seems covering Pictures: REUTERS/ PA tles of Dom Perignon at £540 in total
is the co-founder of peer-to-peer music- up the trail left by City boys is a booming and a bargain-value bottle of plonk,
sharing service Napster, which was even- business. Gevrey Chambertin, at £88.
tually shut down by US authorities after Apparently the surge in paper annihila- For the service charge of £113, venison
being involved in a long-running battle tion is due to new powers set in place last pie and battered fish was served
with the record industry over its apparent year that allow the Information as blotting paper, alongside some plat-
advocacy of piracy. Commissioners Office (ICO) to fine data ters of smoked salmon and chicken
So which aspects of the The Social criminals up to £500,000 fine for a “seri- wings.
Network were fictionalised, wonders The ous breach”. Hiring one of Shred-It’s 120 It must have been hard to haul their
Capitalist. “Well,” he explains, “there are specially designed trucks to scrap your overloaded bodies from the comfy sofas
no Victoria’s Secret models in Silicon paper rather than your balance sheet at 3.09pm, when the bill was paid,
Valley.” seems an investment worth under-taking. amounting in total to £1,020.38.
CITYA.M. 24 JANUARY 2011 News 11
Greencore to
fight rival bid
Meanwhile, Northern will send let-
▲
M&A
ters to its shareholders this week to
BY MARION DAKERS stress the benefits of Boparan’s bid,
GREENCORE is expected to sweeten which at 73p per share represents a
its merger deal with Northern Foods 61.3 per cent premium on Northern’s
this week in an attempt to best closing price before the bid interest
Boparan’s £342m cash takeover offer. was revealed.
Dublin-based Greencore is consid- The bid also has a premium of 52
ering adding a cash sweetener on top per cent to the value of Greencore’s
of its all-share merger with Northern, all-share bid, which offered Northern
according to people familiar with the Foods shareholders 0.4479 of a
companies. Greencore share for each Northern
AN EDUCATION IN RISK.
AN EDUCATION IN RISK.
Northern’s board has dropped its Foods share they owned and was
support for the Greencore deal and
instead recommends that sharehold-
worth 48.2p per share on Friday.
Analysts had said Boparan would
THE DIFFERENCE BETWEEN
ers support Boparan’s £342m cash
takeover offer, made late on Friday
need to offer a significant premium
to improve on the cost synergies
THE DIFFERENCE BETWEEN
after the Takeover Panel extended its promised by Greencore.
5pm deadline. Boparan struck a deal with
GREENCORE David Currie still heavily involved. Understanding risk. It’s the difference between
ADVISERS Leading the Northern offer team is
managing director Chris Baird, who
being prepared, and not. Between making
joined from Dresdner Kleinwort in better decisions, and not. That’s why GARP’s
2009.
IBI Corporate Finance and FRM® and ERP ® professional designations,
Goodbody Stockbrokers, both based in education, and training are the overwhelming
Ireland, are acting as joint sponsor
and joint broker respectively. choice of individuals and institutions. Our
Magic circle firm Slaughter & May 150,000 members can be found in corporations
is advising on the legal side, with part-
The Irish food group hired an army of ners John Panichola and Jonathan and financial services firms, governmental
advisers to work on its merger with Marks leading a six-strong team. bodies, and academic institutions around the
Northern, first announced in Powerscourt has worked with
November, including Barclays Capital, Greencore since 2006, and counts BP, world. Start making better decisions now.
Investec, Slaughter & May and public Aer Lingus and Independent News & Visit GARP.org/bonus to learn more.
relations group Powerscourt. Media among its clients.
Barclays Capital is acting as finan- The firm was set up by former
cial adviser, joint broker and joint Sunday Times business editor Rory
sponsor, with Mark Todd and Jon Godson in 2004.
Bathard-Smith heading the team. Rothschild, Goldman Sachs and PR
Joint broker Investec has worked agency Hudson Sandler are advising
with Greencore for a number of years, Boparan on its surprising rival bid for
with head of investment banking Northern Foods.
12 News CITYA.M. 24 JANUARY 2011
Davos ready
Barclays may for a deluge
overhaul its of bankers
remuneration
▲
BANKING
BY JULIET SAMUEL
FINANCIAL services firms are set to
make a strong reappearance at the
World Economic Forum in Davos this
BANKING nesses and pledge to be more trans- week. Guests at the forum will
▲
BY STEVE DINNEEN parent over pay. In exchange the gov- include Barclays’ Bob Diamond, JP
ernment will offer to end “banker Morgan’s Jamie Dimon, Deutsche
BARCLAYS could completely overhaul bashing” by ministers and guarantee Bank’s Josef Ackermann, HSBC’s
the way it remunerates its top staff there will be no further crackdown Stuart Gulliver and outgoing Lloyds
next month. on bonuses. chief executive Eric Daniels among
Bob Diamond is considering paying However, banks are understood to others.
a portion of bonus payments for his be hesitant, with lending commit- The strong presence of banking
top 1,000 staff in contingent convert- ments likely to be agreed at far below executives comes during a year that
ible bonds – known as Cocos. the number being discussed. the organisers say should move the
Cocos are a more politically accept- Santander has already pulled out world “from risk to opportunity”. But
able form of remuneration as they of the talks, instead opting to deal the theme of this year’s event,
convert from debt to equity if a bank directly with the Treasury, and City “shared norms for a new reality” has
runs into trouble, therefore becoming A.M. understands Barclays is unhap- left some observers scratching their
relatively worthless, unlike debt which py with tough new rules being pro- heads. The programme says: “The
is likely to be repaid. posed about disclosure of staff ‘new reality’ is a world with manifold
The bank told City A.M. no decisions remuneration. power centres, characterized by a
have been made on bonuses yet. The Banks are also understood to have high degree of volatility and the
bank will report its results on 15 clashed with the government about entrance [and exit] of players in the
February and bonuses will be commitments to the so-called “Big global race for competitiveness.”
announced after that. Society Bank,” which would provide It promises that attendees will
Diamond will also announce a lending facilities to charities and vol- gain “real insight” into the issue.
strategic review that will target untary organisations. Despite the optimism, however,
underperforming parts of the busi- Cameron had hoped to secure lend- the forum’s chair Klaus Schwab said
ness and could lead to significant job ing of more than £1bn but is unlikely last week that the world is suffering
losses. to achieve anywhere near this sum. from “global burnout syndrome”
Meanwhile, an accord between the that makes it too weak to tackle the
government and UK banks on lend- Chancellor George myriad threats of economic uncer-
ing and pay stalled again yesterday, tainty and political risk.
with an agreement now not expected
Osborne is unlikely to “We have to be careful that this cri-
until next month. achieve the initial sis does not become a social crisis --
The talks – dubbed project Merlin – target of £200bn in which it has in some countries,” the
aim to secure assurances that banks new lending German business studies professor
will lend almost £200bn to small busi- Bob Diamond is considering radical new payment plans Picture: GETTY told a media conference.
CITYA.M. 24 JANUARY 2011 News 13
You worked hard
for your money
ECONOMISTS’ VIEWS: WHAT DO YOU EXPECT FROM FOURTH-QUARTER GDP? You shouldn’t have to
Interviews by Julian Harris work even harder to get
the best exchange rates
GEORGE BUCKLEY | IAN STEWART | PETER SPENCER |
DEUTSCHE BANK DELOITTE ERNST AND YOUNG ITEM
CLUB
” ” ”
per cent. The recovery is less we think this will be a sustained are still low but are growing
than half way through. recovery. like the clappers.
Growth to slip
after record
winter freeze
December, reinforcing expectations
▲
UK ECONOMY
BY JULIAN HARRIS AND ALISON LOCK that it will drag overall economic per-
formance lower.
THE coldest winter in 100 years may Others expect more: the British
have contributed to a slowdown in Chambers of Commerce has forecast
economic growth in the three 0.6 per cent growth, while think tank
months to December, economists the National Institute of Economic
said ahead of official GDP figures and Social Research said output grew
released tomorrow. 0.5 per cent in the quarter.
Experts have forecast an average 0.4 A resurgence in UK manufacturing,
per cent GDP growth for the quarter, led by a weaker pound and strength-
down from 0.7 per cent in the previ- ening export orders from emerging
ous quarter. markets, is not expected to stave off
Heavy winter snow caused shop- the slowdown.
pers to stay at home, hurting retailers Keith Bowman of Hargreaves
in the run up to the busy Christmas Lansdowne said industry growth
period. would be “counterbalanced by con-
December’s retail sales figures, sumer hesitancy ahead of expected
published on Friday, showed sales vol- government spending cuts, which
umes frozen at December 2009’s level commence in earnest during 2011.”
as people bought less food and fuel. The UK grew 0.7 per cent in the
The weather also affected supply third quarter of last year and 1.1 per
chains, and kept staff away from the cent in the second quarter, but the
workplace. contribution of a boost in construc-
Some forecasters expect growth to tion is not expected to continue into
slump to as low as 0.2 per cent, after the fourth quarter, partly due to a fall
disappointing results for the service in government sector spending.
sector – the largest sector in the UK, “Construction activity had clearly
which contributes more than 70 per slowed appreciably even before being
cent to GDP. hit markedly by December’s severe
A purchasing managers’ survey of weather,” said Howard Archer, chief
the service sector contracted in economist at IHS Global Insight.
UK ECONOMY
mortgage holders reported a negative
INFLATION expectations have soared outlook for their finances.
to a record high this month, as rising Mortgage holders may be wary of
prices add to the squeeze on house- impending interest rate hikes, the
hold spending, a survey said today. report said, as inflation stubbornly
With 89 per cent of respondents climbs upwards.
expecting the cost of their purchases And with interest rates at a histori-
to rise this year, the Markit household cal low, savings continued to fall, as
finance index dropped to its lowest households “sought to offset a fall in
level since April 2009. employment income,” Markit said.
“The recent VAT increase, higher Consumer price index (CPI) infla-
inflation and squeezed incomes tion hit 3.7 per cent in December, offi-
mean that households are once again cial data revealed last week.
running just to stand still,” said Tim There was more worrying news for
Moore, senior economist at Markit. the high street, as over half those sur-
Over one third of households veyed indicated a fall in their willing-
reported a recent deterioration in ness to make major purchases.
14 News CITYA.M. 24 JANUARY 2011
▲
M&A
Oberthur to raise the offer if ries.
BY JULIET SAMUEL backed by De La Rue. A spokeswoman for De La Rue
OBERTHUR Technologies, the A weekend report said Oberthur said the company would not com-
French group eyeing British ban- would make a new bid of around ment on relationships with cus-
knote printer De La Rue, has joined 950 pence. tomers because of confidentiality
forces with private equity firm The two firms have clashed since agreements that are in place.
Bain Capital to lift its bid. Oberthur made its offer, in particu- However, De La Rue stated that
However, Bain will only support lar over the nature of De La Rue’s orders taken since July 2010 were
the deal if it gains approval from relationship with its key customer, comparable with those won in the
De La Rue’s board, sources said. The Reserve Bank of India. same period the previous year.
De La Rue last month rejected a A source familiar with the situa- The UK’s Takeover Panel said
takeover approach from Oberthur tion said earlier this month that Oberthur must announce a firm
worth £895m, or 905 pence per De La Rue would not be awarded intention to bid for De La Rue by 7
share, calling it “highly oppor- new contracts to supply the February or walk away.
tunistic”. Reserve Bank of India in the imme- Last night an Oberthur
Bain is now willing to provide diate future, following production spokesman refused to comment.
@
Picture: REUTERS
@ MORE NEWS
NEWS | IN BRIEF
Worldwide consumer squeeze
Consumers in most countries globally
look set to keep a tight grip on spend-
ing in coming months as they worry
about job security and rising inflation,
weak economic environment this year,
compared with 38 per cent of
Europeans and 19 per cent of con-
sumers in the Asia Pacific, the survey
revealed. Consumer confidence was
Confidence Index's average score,
however, was unchanged from the
third quarter at 90, helped by sharp
jumps in confidence in Norway, Turkey
and Switzerland as well as the
ONLINE AT according to a Nielsen Company sur- positive at the end of last year in only Philippines. A reading below 100 sig-
vey released yesterday. Almost half 14 out of 52 countries surveyed world- nals pessimism about the economic
www.cityam.com (45 per cent) of Americans foresee a wide. The Nielsen Global Consumer outlook.
CITYA.M. 24 JANUARY 2011 News 15
Investors
Serco walks REISS ON THE RISE
beat tax by
from bid for using CFDs
US spy firm
▲
CAPITAL MARKETS
BY RICHARD PARTINGTON
HALF of all equities traded in the UK
last year were traded as contracts for
difference (CFD), as investors looked
M&A International. to evade stamp duty and capital
▲
NEWS | IN BRIEF
British steel production boost export markets,” said UK Steel direc- made by Brazilian beef processor JBS,
Steel production in the UK shot up by tor Ian Roger. “Nevertheless produc- a source said over the weekend.
24.7 per cent last year, manufacturers’ tion remained well below pre-recession Details of the bid submitted by Apollo,
group EEF said today. Like on like pro- levels,” he added. Bain Capital and TPG Capital were not
duction soared to 9.4m tonnes in 2010 immediately available. Preliminary
from 7.5m tonnes the previous year, Apollo bids for Sara Lee bids, or indications of interest, had
they announced. “The strong improve- A private equity group led by Apollo been due on Friday, sources said. Sara
ment reflects the pick up in manufac- Global Management has submitted a Lee and the private equity firms were
turing activity experienced both in the takeover offer for Sara Lee, but an not immediately available to comment
UK and in our principal European expected rival offer has not yet been on the deal.
1,040 260
25 Oct 12 Nov 2 Dec 22 Dec 14 Jan 25 Oct 12 Nov 2 Dec 22 Dec 14 Jan 25 Oct 12 Nov 2 Dec 22 Dec 14 Jan
BY ELIZABETH FOURNIER staff can go to for advice. Riversdale Mining talks stall
This is particularly important as Talks between Riversdale Mining and
UK companies should prepare for the there is no minimum price for a China’s Wuhan Iron & Steel Corp over
Bribery Act now by establishing a “no- bribe – anything with improper intent acquiring a state in the Zambeze coal
list” of hospitality gifts that have been is included regardless of value. project in Mozambique have been sus-
turned down, say City advisers. Though extra guidance on the Act is pended while a takeover bid by Rio Tinto
Much has been made of what can be expected from the Ministry of Justice remains on the table, Riversdale said.
accepted as corporate hospitality before the end of January, companies Companies must start keeping a list of hospitality gifts they turn down Picture: REX Riversdale is recommending its share-
under the Act’s new rules, but compa- should not expect this to be dogmatic. holders accept Rio Tinto's offer, saying it
nies should pay more attention to “Companies waiting for guidance FAST FACTS | UK BRIBERY ACT 2010 was unaware of any higher offers in the
what its employees reject based on rather than acting now are wasting works.
internal standards – those that raise their time,” said Barton. “It’s likely to ● The new UK Bribery Act was initally winning public contracts if the new liability
suspicion regardless of size. be pointers rather than a template.” planned for implementation at the beginning charges go ahead Swiss banker placed in custody
“If you’re flying someone to Sydney This is particularly important in of the year, but was delayed to allow for fur- ● Minority stakeholders in joint ventures Former Swiss banker Rudolf Elmer, who
for the Ashes and not going as well it’s relation to facilitation payments. ther consultation. It will now be introduced could be hit by the new rules – a 49 per cent was found guilty of breaching bank
always going to look strange – the new Already illegal within the UK, the new from 1 April 2011, with further guidance control defence will no longer be acceptable, secrecy laws over his transfer of client
Act doesn’t change that,” said Daniel Act will have an extraterritorial scope expected from the Ministry of Justice before with investigations focusing on the practical data to the online website Wikileaks,
Barton, a senior director at profession- that will apply to subsidiaries based in the end of January. and commercial running of a business rather has been remanded in custody, reports
al services firm Alvarez & Marsal. foreign jurisdictions. ● The Act contains a new liability clause for than the percentage held. said yesterday. The former chief operat-
“Instead companies should focus on Though the Ministry of Justice directors that will mean subsidiaries and serv- ● The Serious Fraud Office is likely to encour-
ing officer at private bank Julius Baer's
establishing a list of gifts that have could prove lenient during the first subsidiary in the Cayman Islands was
ice providers will have to be closely moni- age companies to be proactive in self-report-
been declined, to prove that adequate weeks of the Act, it’s best to start now detained on Saturday because he risks
procedures are in place internally to to ensure continued supply. tored – regardless of how far down the chain ing and remediating – US companies used to destroying evidence, his lawyer Ganden
catch bribery.” “Companies should look at fading bribery occurs, the buck will stop at the top. working under the Foreign Corrupt Practices Tethong Blattner told ATS news agency.
It’s also crucial that there is a clear out facilitation payments now so they But Scotland has indicated it would scrap rules Act are likely to be a step ahead of their UK Elmer plans to appeal against
chain of command in place for inter- have a chance to explain to suppliers that ban companies convicted of bribery from couterparts in coming forward. Wednesday’s court decision that found
nal communications, with a central before the Act comes in,” said Barton. him guilty of handing over secret files.
CITY MOVES | WHO’S SWITCHING JOBS Edited by Steve Dinneen in association with
Visit: www.CityAM.com/newsletter
CITYA.M. 24 JANUARY 2011 News 17
▲
INDUSTRIAL and Commercial Bank
of China, the world’s top lender by
market value, will pay about $140m
(£87.5m) for 80 per cent of Bank of
East Asia’s US unit, the two compa-
FOOD AND DRINK have foods-led, rather than drinks led nies said yesterday.
▲
BY JENNY FORSYTH pubs, and that is now the focus of the The deal, first mentioned in a
company.” report on Friday, will require
JOHN Lovering is set to step down as Lovering joined the M&B board in approval from regulators in China
chairman of the pubs group January last year following a high-pro- and the United States before it is able
Mitchells & Butlers this week, a year file row instigated by the Bahamas- to proceed, ICBC and BEA said in sep-
after taking over following an based Joe Lewis. Lewis had been arate statements posted on the Hong
investor-led board battle. involved in a public spat with M&B, Kong stock exchange.
Lovering, the former chairman of who accused him of trying to take “Acquiring a controlling interest in
retailer Debenhams, has told the control of the board. the target bank is an important com-
board he wants to leave as soon as a The group, which has over 1,600 ponent in the bank’s globalisation
successor is found, because he feels pubs and restaurants and whose strategy, and the transaction would
he has done as much as he can to chains include Harvester, All Bar One complement the bank's overseas insti-
improve the group. and Toby Carvery, sold over 300 pubs tutions,” ICBC said in the statement.
His departure is expected to be in the last year, helping it to reduce Bank of East Asia added that its US
announced at the company’s annual debt. Its financial results have also unit would now focus on its whole-
meeting this week. improved, and the share price is up sale banking business through its
A source familiar with the compa- almost 30 per cent in the year since branches in New York and Los
ny told City A.M.: “It has always been Lovering took the helm. Angeles.
his intention to leave once he’d done In September it reported a 4.4 per Natalie Portman pulled in US moviegoers over the weekend, with new release No Strings ICBC’s buy would make it the first
what he set out to do. cent increase in sales at outlets open Attached joining Black Swan in the top ten films at the North American box office between Chinese lender to buy into a US retail
“He came in last year and set out a for more than a year, driven by a 21-23 January. No Strings Attached, which co-stars Ashton Kutcher, entered at number one, bank and is likely to be scrutinised by
new strategy in March, which was to surge in demand for food. taking $20.3m (£12.7m) in its opening weekend. US regulators.
Israel
Hong Kong
Taiwan
Singapore
1-20
Most
Globalised
Countries
21-40 rankings
41-60 rankings
18 News WORDS BY ROGER BAIRD CITYA.M. 24 JANUARY 2011
I
t is easy to see why the chairman of
the National Association of Pension
Funds (NAPF) looks more relaxed
these days – this coalition govern-
ment is less keen on beating shareholders
over the head.
Lindsay Tomlinson is lounging on a sofa
in a bright modern office in the NAPF’s
headquarters on Cheapside, opposite the
recently-opened shopping centre One New
Change. It is a far cry from just a few
months ago when Labour City minister
Paul Myners and business secretary Lord
Mandelson took turns at giving sharehold-
ers a kicking.
The pair argued investors had been
asleep at the wheel during the financial
crisis. They said shareholders had exerted
little scrutiny over companies they owned
and in some cases let management pursue
reckless growth as long as the returns
were good. But when the crisis hit it was
left to the taxpayer to underwrite large
parts of the UK banking system, and by
extension, the country’s economy.
Tomlinson, whose members own
around £800bn of UK shares and bonds rest is owned by overseas investors. The National pensation and clean up costs. ing and its plans for the new business.
issued by the country’s top firms, leans But Tomlinson, who is also a managing Association of Tomlinson says: “This was a surprise for Tomlinson says: “Companies are under
forward in his seat and says that some of director at BlackRock, is right to point out Pension Funds a lot of shareholders. They asked the siege for long periods of time. Takeover
that was deserved – but only some of it. that the power of the UK pension funds chairman Lindsay board a lot of questions about how risk tactics have evolved over the last 10 to 15
The youthful pensions chairman, who and insurance groups is waning. A decade Tomlinson at its group management worked right the way years and have tilted in favour of the firm
looks a decade younger than his 59 years, ago the ABI’s members owned around 24 offices on Cheapside through the company. We wanted to making the offer.”
says: “A lot of what the last government per cent of UK public companies with the in the City understand what went wrong.” However, these proposals fall far short
talked about didn’t reflect that the influ- NAPF holding 18 per cent. And in the mid- Did shareholders push for the removal of those advanced by City veteran Sir
ence of UK based pension funds had 1980s around 80 per cent of the UK stock- Picture: Micha of former chief executive Tony Hayward? Roger Carr, who was the chairman of
diminished. Pensions have changed so market was held by institutional Theiner/City A.M. “I’m a big fan of BP,” says a tight-lipped British confectionary maker Cadbury,
much in the last 30 to 40 years. And partic- managers based in the UK. Tomlinson. “Good boards take action which was sold to US rival Kraft Foods for
ularly since the end of the 1980s. In 1979 He says UK pension funds “no longer before shareholders ask for it.” £11.9bn in January.
exchange controls went in the UK. And have the critical mass” they once had Yet Tomlinson admits “the real test” of Carr – now at the CBI – complained he
also in the last 15 years a large amount of among the country’s biggest companies. this newfound shareholder activism is could not properly defend the iconic UK
private equity, sovereign wealth and He adds that institutions have also been how long it lasts when the deal market firm because once a bid had been made
hedge fund money has moved into the moving into bonds over the last decade or picks up again. hedge funds bought into the business and
markets.” more in order to diversify their holdings. Rather than sniping at shareholders, were only interested in driving up the
Tomlinson’s members own around 12 Sovereign wealth funds and hedge Tomlinson says, the coalition is more con- price of the company in the short term
per cent of the UK stockmarket, with the funds now have a great say in UK firms. cerned with tackling the budget deficit before selling to the highest bidder. Many
rival Association of British Insurers (ABI) And Tomlinson says the trick is to get and making sure the UK’s corporate tax is in the last government and the unions
owning the same percentage. Retail them to subscribe to the 1992 UK competitive with other parts of the world. agreed with him.
investors own a share, as do other kinds of Combined Code on corporate governance, But this government, like the last, is Carr argued, among other things, that
UK-based institutions. Another 15 to 20 based on the comply or explain principle. also fighting its corner in the European investors who bought shares during a bid
per cent of the UK market is managed by Tomlinson says: “It’s definitely in their Union to ensure that the comply or should have their voting rights removed
UK institutions for overseas investors. The interests for these funds to abide by the explain principle runs through the heart so that “short-term money does not deter-
Combined Code. But they have a lot of of much of the new financial services leg- mine long-term futures”. He also said the
other things to worry about. Other codes islation that is being drafted in Europe. acceptance level for takeovers should be
CV | LINDSAY TOMLINSON in other countries, for one thing. But also Others in the 27-nation bloc argue this raised above 50 per cent plus one of share-
UK companies are regarded as well run. lighter touch regulation has failed and holders to make it harder for short-term
Whereas there are firms in other regions more prescriptive rules are needed. shareholders to ride roughshod over the
Age: 59 that are based around family structures or Tomlinson backs the government. “We wishes of long-term investors.
have unfair voting rights that need more want to make the existing system work Tomlinson disagrees with this. He says:
Work: Joins Commercial Union as an attention. So these funds reason: why better,” he says. “And I believe it can be “We have spent the last 100 years in this
assistant actuary in 1973; joins spend so much time on the UK system? made to work. But this is currently a live country evolving shareholder democracy.
Metropolitan Pensions Association (now Also, foreign funds don’t want to get
caught up in the politics of a situation. If
“Companies argument in Brussels.”
However, Tomlinson, who is also chair-
I am a firm believer in one share, one
vote.” He also adds that observers were
Mercers) as a pensions actuary in 1977;
joins Provident Mutual as an investment an issue looks like being highly political
they want to avoid it.”
are under man of the Takeover Panel’s Code
Committee (which makes amendments to
wrong to look to revisions in the Takeover
Code as a backdoor way of making nation-
manager; from 1987 holds a variety of
senior roles at Barclays Global Investors, However, in recent months sharehold-
ers have showed a firmer hand at the tiller
siege. the Takeover Code), is currently in the
middle of major rule changing himself.
al champions out of firms.
He says: “That is for the government not
(now part of BlackRock, where he is a
managing director). Became chairman of of the companies they own. Investors
rejected Prudential’s proposed $35bn
Takeover The body plans to overhaul the way merg-
ers and acquisitions are governed in the
for us to decide. But UK governments over
a long period of time have favoured open
the National Association of Pension Funds
in 2009 and is also chairman of the
(£23bn) takeover of AIG’s Asian business as
too expensive and told the insurer to
tactics have UK.
Critics argue firms spend months on
markets.”
Tomlinson says he expects the Takeover
Takeover Panel’s Code Committee. think again.
“Before the crisis the collapse of the Pru
evolved to end fighting a takeover bid, and are also
concerned at the number of UK firms that
Panel to publish a detailed draft of its pro-
posals by then end of the first half of this
Education: St John’s College, Cambridge,
read mathematics
deal would not have happened,” says
Tomlinson.
favour the end up under foreign ownership.
Last October the Panel responded to
year. Until then, Tomlinson has plenty on
his plate. His members, who have recently
Family: Married, with “five children and
He adds that shareholders were quick to
meet with BP’s management in the wake
firm making these growing concerns and proposed
that the offer period be cut from three
found their voice, might not have the all-
pervasive influence they once had, but
four Labradors.” Lives in Sussex. of its Gulf of Mexico oil spill – a fiasco that
will cost the firm at least $11bn in com-
the offer. ” months to 28 days, and that the predator
firm provide more details about its financ-
they still have an important say on how
corporate Britain thinks and acts.
CITYA.M. 24 JANUARY 2011 News 19
T
he government has made clear when I visited Leeds last week. to come. our economy, vital for our security and will help to generate greater economic
that its top priority for 2011 is to Of the one million people the finan- Only a sophisticated and globally vital for our politics and diplomacy”. growth for all, whether they are based
drive forward growth in the UK cial and professional services industry connected financial services industry As a vital link between East and in London, in Leeds or in Istanbul.
economy and to ensure this employs throughout the UK, less than is capable of delivering the combina- West, Turkey is clearly an important Michael Bear is Lord Mayor of the City of
growth is spread across the country a third are based in London and the tion of financing British businesses business partner for the UK – hence London
NEWS | IN BRIEF
Telefonica furthers Unicom alliance Telefonica's stake in China Unicom will rise
Spain's Telefonica and Chinese mobile oper- to 9.7 per cent, while China Unicom's owner-
ator China Unicom will deepen their strate- ship of Telefonica will reach a total of 1.37
gic alliance by buying an additional $500m per cent. China Unicom, which will purchase
(£312.5m) stake in each other. The two 21.8m shares of Telefonica in the coming
companies, which together have more than days at an agreed on price of €17.16 per
550m clients in Europe, Asia and Latin share, will get a seat on Telefonica's board.
America, are exploring joint investments in Telefonica will buy $500m worth of China
parts of Asia and Africa where they are not Unicom shares from third parties over a
already present. After the new purchase, nine-month period.
The value of business travellers’ luggage has shot up with the introduction of high-tech portable items such as iPads
BY JOHN DUNNE informed to do their job when Apple iPad worth £699, a
they are on the move as in the BlackBerry Torch 9800 (bought at
BUSINESS travellers take items office. Carphone Warehouse SIM-free)
worth nearly £1,500 in their air- “However, our survey shows the which is worth £464.95, a
plane carry-on bags, according to a price of staying refreshed and in Moleskine ruled notebook worth
survey. touch is a high one for the modern £15 and a travel pillow worth
The research found that business jet-setting employee.” £5.99.
people typically take 12 items, The half-yearly index will chart Other favourite items include a
including essentials like tooth- the contents of bags to see what Mont Blanc Rollerball pen, valued
brushes and a shirt. travellers are deeming as key to a at £230, an adaptor plug, worth
But now smartphones and iPads successful business trip. £3.99, the Economist, worth £2,
– costing around £700 – are mak- Couper added: “It’s as important some Colgate Total toothpaste,
ing their way onto the list as tech- as ever for businesses to control worth £1.45, Sure roll-on deodor-
nology becomes a must-have tool their costs. The Carry-On Bag Index ant, worth £1.69 and a Marks &
for modern business. gives a glimpse of the expense of Spencer pure cotton non-iron shirt
Alison Couper, global communi- flying from country to country worth £25 plus Marks & Spencer
cations director at Hotels.com – even before travel and accommoda- lambswool socks worth £10.
which carried out the research – tion are put into the equation.” Additionally, those with discern-
said: “Today’s business traveller is According to the survey, the list ing taste could also carry a copy of
working harder than ever before of typical items in a business per- this newspaper – totally free.
Wealth Management
20 CITYA.M. 24 JANUARY 2011
O
VER the past six months, the price past six months the shares vides greater diversifi- sector without having to pick individual
of uranium has risen more than 60 of Cameco and Paladin are cation, it is unlikely to stocks. The Global X ETF however, would
per cent to $68 an ounce and up over 50 per cent while provide the exposure be my choice since it’s more heavily
thanks to increasing demand and Uranium One is up nearly to a rising uranium weighted towards the miners and corre-
tight supply, prices could be headed even 90 per cent. price that comes lates more closely to moves in the urani-
higher. Where these funds differ is from holding the um price.
There are 442 operating nuclear reac- their asset allocation: the Global X ETF, which Ben Mountifield is the author of the monthly
tors worldwide but with 60 new ones three miners make up over 40 also includes Denison newsletter ‘The Mountain Investor Report‘ See:
under construction (a further 156 are in per cent of the Global X ETF; howev- Mines, Kalahari Minerals www.mountaininvestor.com
the planning stages) and fuel supplies
from stockpiles dwindling, it’s hardly sur-
prising that uranium prices have been FUND PROVIDED BY FUND NAME DESCRIPTION (FROM THEIR WEBSITE) EXCHANGE / TICKER
pushing higher. The supply of this vital
metal looks set to get tighter still as
Russia closes the doors on its “megatons Global X Funds Global X Uranium ETF “The Solactive Global Uranium Index is designed to reflect the per- NYSE Arca / URA
to megawatts” programme in 2013. Under www.globalxfunds.com formance of the uranium mining industry. It is comprised of selected
the scheme, which has been running companies globally that are primarily engaged in some aspect of the
since 1995, more than 15,000 ex-Soviet uranium mining industry such as mining, refining, exploration, and
warheads have been down-blended to manufacturing of equipment for the uranium industry.”
reactor grade fuel.
By 2014, global demand is projected to
be 95.7m kilograms, up from 76.6m kg
today. This will leave an estimated annual ETF Securities ETFX WNA Global Nuclear “ETFX WNA Global Nuclear Fund is designed to track the perform- London Stock Exchange / NUKE
shortfall of around 36m kg, which is like- www.etfsecurities.com Energy Fund ance of the WNA Nuclear Energy Index. The WNA Nuclear Energy
ly to result in higher prices both for the Index is designed to track the performance of approximately 65
metal and for those companies capable of companies engaged in the nuclear energy industry with representa-
bringing uranium to market. tion across reactors, utilities, construction, technology, equipment,
There is currently no ETF (Exchange service providers and fuels.”
Traded Fund) that tracks the spot price of
THEMARKETS
the bears could resume control once 5,896.25 the newly formed International
again this morning. 21 Jan Airlines Group, created by a merger of
GFT is quoting the FTSE 100 index 5,900
Spain’s Iberia and British Airways.
to open down 10 points from Friday’s The new group forms Europe’s sec-
close, at a level of 5,886. Elsewhere in ond-largest airline, and has already
Europe the German Dax is called to 5,700 targeted further acquisitions, but
open unchanged at 7,062, and the investors may be put off by the threat
French CAC is quoted down 3 points of a fresh wave of strikes.
to open at 4,014. Martin Slaney is director of GFT’s global
25 Oct 12 Nov 2 Dec 22 Dec 14 Jan dealing operations
CHINA ECONOMY CAUSING CONCERN
The latest prime culprit for the
renewed selling pressure on equities ing measures from Beijing are in the ing that British retailers had the
MARTIN SLANEY is the lingering fear that the Chinese
economy is overheating.
offing.
Tomorrow sees the release of UK’s
worst December ever – the cause
being a chilly combination of the
Figures for China’s Gross Domestic own GDP data for the fourth quarter, snow and soaring food prices.
D
espite closing on Friday on a Product showed the country still and traders may well err on the side
mild high, over the course of charging along at an annual increase of caution ahead of the announce- IAG IN FIRST DAY OF TRADING
the week the FTSE still dropped of 9.8 per cent, which also stoked ment which follows a shockingly low Also today watch out for potential
nearly 1.8 per cent, managing fears that further monetary tighten- retail sales figure last Friday, indicat- high volumes and some interesting
T
The much anticipated pullback In an environment like that, and S&P 500, providing plenty of room for on signs of an improving economy. along with financials, took the brunt
is finally under way, some with a heavily extended market, dis- disappointment. S&P 500 earnings estimates for the of selling last week. Materials shares
investors say, after a mid-week appointments are taken hard. The “We have been climbing up a current quarter were revised up 1 per fell the most, losing 3.3 per cent over
wobble. But the market is show- S&P 500 just ended its first down mountain, and we are on a ledge cent over the last 60 days, according the week.
ing it still has some juice left – if earn- week in eight with underwhelming here, so there is definitely a bit of a to data from StarMine. Wall Street will tune in to President
ings can meet towering expectations. results from the likes of Goldman pause as people are going to need Positive revisions were heavily con- Barack Obama’s State of the Union
This earnings season, if you’re Sachs and Freeport McMoRan Copper some evidence of accelerated recov- centrated in the technology, energy address tomorrow night, when he is
good, you’re just OK. If you’re just OK, & Gold weighing on indexes. ery – not just baseline recovery,” said and materials sectors. Estimates in expected to make job creation the No.
you’re bad. And if you’re bad, you’re Some big energy companies such as Rick Meckler, president of investment the materials sector were raised 5.7 1 issue.
quickly taken outside and put out of Chevron and ConocoPhillips are firm LibertyView Capital per cent; in energy, they rose 4.8 per The Federal Reserve’s policy-mak-
your misery. Only the truly great are reporting results this week. Management, in New York. cent, and in technology, 2.3 per cent, ing panel also will meet for the first
lauded – and even then not very Expectations have been running up Analysts have beefed up expecta- StarMine said. time this year, convening tomorrow
much. in the sector, the third- largest in the tions as stocks rocketed late last year Unsurprisingly, those three sectors, and concluding on Wednesday.
CITYA.M. 24 JANUARY 2011 Wealth Management 21
3i Group 319.75 3 340 250 Colt Telecom 148 4 148 109 Jardine Lloyd 639 2 639 459 Rotork 1635 -3 1895 1215
3i Infrastructure 116 0.25 125.25 101 Compass Group 564 6 594 425 John Wood Group 543.50 14.50 581.50 293 Royal Bank of Scot 45 2.75 58 31.25
A.B. Foods 1086 7 1182 873.50 Cookson Group 638 13.50 687.50 367.50 Johnson Matthey 1885 -17 2100 1446 RSA Insurance Grp 132.50 -0.50 136.50 114.75
Aberdeen Asset.Man. 211.75 -2.50 225 112.75 Croda International 1510 1 1625 751 Jupiter Fund Man 307.50 2.50 314 180.25 SABMiller 2102.50 22.50 2306 1650
Admiral Group 1656 34 1693 1114 Daily Mail & Gen 566 0 590 432.50 Kazakhmys 1544 6 1671 965 Sage Group 280.25 4 289 222
Aegis Group 141.25 -0.50 145.50 103.50 DAVIS SERVICE 437 0 450 360.25 Kenmare Res. 33 0.75 35 9.25 Sainsbury (J) 370.50 0.25 395 313
Afren 151.75 -0.50 161.75 79 De La Rue 819.50 5.50 984 549.50 Kingfisher 267.50 3.25 271.25 198.50 Schroders 1811 -5 1922 1116
African Barrick Gold 529 11 670 503 Debenhams 68 1 79 53 Ladbrokes 132 -0.75 162.75 122.75 Schroders NV 1414 7 1508 929.50
Aggreko 1419 -1 1685 882 Derwent London 1545 -10 1605 1208 Lancashire 571.50 2.50 647 442 Scot.& Sth. Energy 1217 6 1258 1010
Alliance Trust 367.75 0.75 378 293.50 Diageo 1204 7 1250 1000 Land Securities 678 -1.50 707 545 Scottish Mortgage 704 -1.50 717.50 475
Amec 1170 9 1226 733.50 Dixons Retail 22 0 36.50 21.25 Legal & General 110 0.25 111 69.75 SEGRO 288 -4.50 341.25 250.25
Amlin 389.75 3.25 433 366.75 Domino’s Pizza 523 11 586 309.25 Lloyds Banking Grp 67.25 0.50 77.50 46.50 Serco Group 558 0.50 651 494.25
Anglo American 3091 24 3410 2254 Drax Group 388.75 -1.50 421.50 326.25 Logica 136.75 0.75 148 101.75 Severn Trent 1401 -10 1499 1086
Antofagasta 1411 -8 1634 761 DS Smith 213.50 0.50 226 104 London Stock Ex. 847 7.50 906 544 Shaftesbury 441 -0.25 460 349.25
Aquarius Platinum 352.50 -3.50 458 227 Dunelm 470.50 1.50 550 325.25 Lonmin 1753 9 2113 1355 Shire 1639 -17 1674 1220
ARM Holdings 518 8.50 536.50 189.25 easyJet 382 0 496.50 348.50 Man Group 282 -12 310.50 202 SIG 143 -0.50 153.25 90.75
Ashmore Group 353 4.75 383.75 218 Edin.Inv.Tst. 434.75 2.75 467.25 364 Marks & Spencer 368 1 427.50 323.50 Smith & Nephew 699.50 4.50 714 537.50
Ashtead Group 163.50 2 177 77 Electrocomponents 251 2.50 279.50 174.75 Meggitt 358 3.50 381 251.50 Smiths Group 1340 -15 1388 995.50
AstraZeneca 2963.50 41 3385 2732 Enquest 145.50 8.25 150.50 89.25 Melrose 303.75 -3.25 329 162 Soco International 370 3.25 484.25 292
Autonomy 1480 56 1975 1271 Essar Energy 534.50 0 589.50 383 Mercantile Inv Tst 1119 3 1133 828 Spectris 1307 -18 1418 735
Aveva Group 1612 0 1673 1007 Eurasian Nat Res 1029 3 1266 818 Michael Page 526 15.50 565.50 346.50 Spirax-Sarco 1850 46 2025 1240
Aviva 436.50 8.50 436.50 294.25 Euromoney Inst. 707 3 732 461 Micro Focus 398.50 -3 546.50 276 Spirent 137.25 -4.75 160.25 102.75
AZ Electronic Materials SA (WI) 298 -2 317.50 249 Experian Group 761.50 4 819 572 Millennium & Cop. 561 -4 594.50 368.50 Sports Direct 168 5 174.75 92.25
Babcock International 560 6 635 492.75 Ferrexpo 419.75 0 448 197 Misys 339.75 8 343 201.50 St James’s Place 293 12 293 204.25
BAE Systems 349.50 6.50 388.75 294.75 FirstGroup 379 -3 412.50 336 Mitchells & Butlers 349 -2 361 265.50 Stagecoach Group 200.50 -1 224 160.75
Balfour Beatty 325.50 5.25 327 229.75 For.&Col.Inv.Tst 310 1.25 316.25 251.50 Mitie Group 231.25 0.75 241 188.75 Standard Chartered 1673 -34 1950 1351.75
Barclays 301 -2.25 383.25 255.25 Fresnillo 1349 3 1682 669.50 Mondi 489.75 -4.25 557.50 338.25 Standard Life 223.75 1.75 236 173
Barratt Development 98 0 137.75 70 G4S 262 1 283.50 237.75 Monks Inv.tst. 355.50 0.50 363 271 Supergroup 1550 -3 1638 535
BBA Aviation 220 0 228 158 Genesis E.m.f. 539 0 568 399 Morgan Crucible 265 0.75 274.25 159.75 SVG Capital 247 -1 250 125.25
Bellway 664.50 -2 809 511 GKN 212 -2 237 102 Morrison (Wm) 264 1.50 306.25 257.50 TalkTalk 151 -2 168.25 108.50
Berkeley Grp Hldgs 919 3 960 742 GlaxoSmithKline 1156 4.50 1318.50 1095 Murray Int.Tst 921.50 -3.50 966 736.50 Talvivaara Mining 586.50 16 620 342.50
Betfair Group 1000 -15 1550 882 Great Portland Est. 355 -0.50 369.25 279 National Express 242 -3.75 259.50 195.50 Tate & Lyle 555 3 564.50 388.75
BG Group 1313 14.50 1366 984 Greene King 447 -4.50 491.50 376.25 National Grid 542 3 596.25 484.25 Taylor Wimpey 36.50 1.25 44 22.25
BHP Billiton 2393 11 2616 1684.50 Halfords Group 406.25 0.50 550 372.75 Next 2144 8 2344 1817 Telecity Group 444.50 -8.25 532.50 360
BlackRock Mining 780 -4 815 492 Halma 320 -7 366.50 223 Northumbrian Water 303.75 -9.25 361.50 252.75 Templeton Emrg. 636 -5 689.50 471.50
BlueCrest AllBlue 170.25 0.25 174.50 156.25 Hammerson 436 -1.25 437.50 336.25 Ocado Group 227 13.50 227 123.50 Tesco 400 1 454.50 377.50
Booker Group 58 -0.50 60.50 38.75 Hargreaves Lansdown 517 1 599 276.50 Old Mutual 125.25 -0.75 145.25 97.25 Thomas Cook Group 199.25 2.50 272 171.75
BP 497.25 3.25 655.50 303 Hays 121.50 0 133.50 88.50 PartyGaming 199.25 -6.75 334.50 199.25 Travis Perkins 1033 -5 1127 664.50
Brit Insurance 1050 -1 1055 728 Henderson Group 152.25 2.50 155.50 112.75 Pearson 1043 4 1051 855 TUI Travel 267 5 308.50 190
British Amer.Tob 2282.50 -14.50 2521 1959 Heritage Oil 439.50 5.25 581 296.75 Pennon Group 614 -10.50 650 483 Tullett Prebon 395.75 4.75 420.50 262
British Empire Tst 500.50 1 512 396.50 Hikma 889.50 -5.50 900 525 Persimmon 422 -3 507.50 336.50 Tullow Oil 1330 23 1388 991.50
British Land 516.50 -7 537 418.25 Hiscox 382 2.50 399 326.25 Petrofac 1582 -6 1685 876.50 UK Commercial Prop 80 -0.25 85 72.75
Britvic 445.25 3.75 518 404.50 Hochschild Mining 489 -11.50 658 234 Petropavlovsk 1042 -13 1365 852 Ultra Electronics 1753 22 1895 1265
Brown (N.) Group 298.75 -4.75 311.25 206.50 Home Retail Group 214 -1 295 188.50 Phoenix Group Hldgs 591 -3 758 557.50 Unilever 1912 22 1997 1688
BSkyB 751 5 751 524.50 Homeserve 441 0 487.50 326.25 Premier Farnell 283 1 304.50 174 United Utilities 550 -7 628.50 507
BT Group 174.50 -2 190.75 110 Howden Joinery 118 4.50 118 56.75 Premier Oil 2011 23 2025 1017 Utd Business Media 702 1 712 409.75
Bunzl 740 0 777 616.50 HSBC Holdings 695.75 -1.50 719.50 596.25 Provident Financial 966 0 999.50 728.50 Vedanta 2371 -1 2934 1839
Burberry Group 1031 -14 1156 590.50 Hunting 752.50 -4.50 806 439.50 Prudential 665 -2 697.50 487.50 Victrex 1402 10 1522 806
C&W Comms 48.25 -0.25 63.75 44.25 ICAP 553.50 8 570.50 294 PZ Cussons 370 -6 409 243 Vodafone Group 175.75 3 178.75 129.50
C&W Worlwide 70 2.75 100 60.50 IG Group 469.50 0.50 553 362.50 QinetiQ Group 136 1.50 142 96.75 Weir Group 1653 36 1861 735.50
Cairn Energy 445 8 493.25 318.25 Imagination Tech 384.25 1.50 441.75 215 Randgold Res 5025 61 6655 4209 Wellstream Holdings 784 0 793.50 436
Caledonia Inv. 1872 12 1928 1512 IMI 890 -1.50 953 530.50 RDS ‘A’ 2142.50 27.50 2162 1624 Whitbread 1720 -14 1887 1266
Capita Group 697.50 -5.50 826 635.50 Imperial Tobacco 1799 -12 2154 1753 RDS ‘B’ 2138 31 2159.50 1554 William Hill 185.75 2.75 216.50 155.50
Capital & Counties 146.25 0.75 157 100 Inchcape 379 -3 394.75 237 Reckitt Benckiser 3390 44 3655 3037 Witan Inv Trust 510 0.50 522 410
Capital Shop Centre 374 -3.50 424.75 301 Informa 435 1 448 304.50 Reed Elsevier 561 5 563 460.50 WOLSELEY 2170 -3 2195 1223
Carillion 380 0.50 387.50 273 Inmarsat 626.50 5.50 821 606.50 Regus 99.25 0.25 120 66 WPP Group 794.50 7 802 572.50
Carnival 2980 13 3153 2037 InterContinental Htl 1295 8 1332 887 Renishaw 1325 -13 1342 565.50 Xstrata 1402 13.50 1535 845.75
Catlin Group 374.25 3.25 393 320 Intermediate Cap.Grp 338.25 -2.50 360.25 240.50 Rentokil Initial 102.50 1 138.50 87.75 YULE CATTO 220 0 221.25 106
Centamin Egypt 147 0.75 197 106.75 International Pers Fin 342 5.50 386.50 183.25 Resolution 246.75 -2.75 328.50 211.25
Centrica 326.50 -3 346 264 International Power 412 -4.75 448.50 284.50 Rexam 339.50 3.25 356 276.50 LONDON TOP 250 BY MARKET CAPITALISATION
Charter 791.50 -8.50 853.50 567 Intertek Group 1715 -5 2000 1150 Rightmove 785 -10.50 812 500.50
Chemring Group 3245 79 3663 2598 Invensys 335 5.50 364.25 230.25 Rio Tinto 4243 6 4584 2812 POWERED BY
Close Brothers 852 0 888.50 664 Investec 500 0 562 417.75 RIT Capital Partners 1322 11 1322 971.50
COBHAM 219.50 1.75 276 192.25 ITV 75.25 -0.75 78.50 48.25 Rolls-Royce Group 627 -3 665 473.50
www.digitallook.com
22 Wealth Management | Spread Betting CITYA.M. 24 JANUARY 2011
S&P 500 is
on the edge
of a painful
correction
But there are good reasons to be
optimistic, says Daniel Knowles
Ready to fly? Or just
T
HE SCOTTISH journalist Bertie about to leap off a
Charles Forbes once said: cliff?
“Optimism is the stuff of which Picture:
American business success is fash- GETTY
ioned”. He would have seen much to be
happy about in the USA now. Though
unemployment remains stubbornly high,
American investors at least are seeing the
bright side.
The S&P 500 index of stocks has rallied
by 8 per cent in the last three months and
2.66 per cent in the last month alone. At
the end of last week, however, the index years, while bearishness is very low. S&P 500, at least in the short term. Ben However, while it might make sense to
seemed to be struggling a little. Christmas Interestingly, the last time the gap Barty-King, an options trader at ETX be short at the moment, if the market
is now long forgotten. Is it time for spread between bulls and bears was so large was Capital, suggests that traders should does drop sharply, it might also present
betters to prepare for a correction? in spring 2009, though then the gap was watch the performance of the index quite an excellent opportunity to buy. As Samra
Kully Samra, a director at Charles the other way around. That point was ret- closely. “The key pivot point is 1,268.5” he points out, this is a pre-election year, and
Schwab, an American brokerage, argues rospectively described as the “mother of says. “If it stays above that level, then it historically, the American stock market
that it’s possible. “Sentiment is a little all market bottoms”. could well keep going”. If not, Barty-King has not dropped in a pre-election year
frothy right now,” he says, “and earnings So is this the mother of all market tops? suggests the index could drop down to since 1945. In fact, on average it has
expectations are quite elevated”. Samra Well, probably not, but spread betters around 1,235 points. gained 17 per cent.
reckons that if a few American companies would still seem wise to go short on the With large numbers of individual
report disappointing results, it could trig- WATCH OUT FOR THOSE RESULTS investors flocking back to the American
ger some profit taking. ANALYSIS l Sentiment Traders confidence index shows the smart money is less confident It would also seem wise to watch individ- stock market from bonds and from
He points to several indicators suggest- ual stocks. The S&P 500 was sharply up on emerging market funds, it is not unrea-
ing that market sentiment might be a lit- 100 Smart Money Confidence (Left) 1,400
Friday after General Electric (GE) reported sonable to expect the US stock market to
tle too optimistic at the moment. The Dumb Money Confidence (Left) its results, but many more are coming. have another good year. Many American
90 S & P 500 (Right) 1,200
SentimenTrader index measuring the gap Halliburton and McDonalds release their firms are sitting on large piles of cash,
80 1,000
between “smart money” and “dumb report on Monday, while on Tuesday, which may make for a boom in mergers
money” optimism shows a large gap 70 Johnson and Johnson does, among others. and acquisitions, while consumer spend-
800
emerging from around December, as 60 Though more market shaking revelations ing, manufacturing and earnings growth
600
“dumb money” got more confident and 50 on the scale of Steve Jobs’s announcement data are all solid. There are lots of very
“smart money” less. 400 last week are unlikely, traders willing to good reasons to be optimistic about the
40
Similarly, individual investors (rather 30 200 follow individual companies closely medium run performance of the market.
than institutional investors) are now more 20
Source: www.sentimentTrader.com as of December 2010
0 might well profit from the swings in par- But traders should perhaps wait a while –
bullish than at any point in the last three 2009 2010 ticular stock prices. lest they be disappointed.
l Electronics company l Monday sees France, l Germany’s consumer l French President Nicolas
BE A CATALYST promising since it announced
plans to cut debt by at least
Philips publishes its 2010 Germany and the European price index (CPI) is pub- Sarkozy briefs the media £700m over the next three
full year results on Monday. Monetary Union (EMU) lished on Thursday. and diplomats on France’s years. But the good news was
A
publish the results of their priorities and agenda for its N INTERIM management overshadowed by investors’ con-
l Sodexo, the food servic- respective purchasing man- l The EMU posts the presidency of the G8 and statement is due from cerns about the reasons for this
es provider, releases its agers index (PMI). results of its January con- G20 on Monday. Sage, the software serv- action. Capital Spreads quotes
first quarter 2011 results sumer confidence index on ice provider, on 437.3p-438.2p.
on Monday. l The Bank of Japan Thursday. l The annual meeting of Wednesday. Renewed confidence The euphoria investors felt for
makes a rates announce- the World Economic Forum in the economy should bode well the FTSE 100 at the start of the
l Tuesday sees Ericsson ment on Tuesday. l On Thursday, the US in Davos-Klosters begins on for the company, which has seen year has given way to worry and
report its fourth quarter December pending home Wednesday this week. shares creep back to the levels it some have begun to beat a path
2010 results and Siemens l The UK releases its sales data is released. achieved before the credit to the exit door. While European
its first quarter 2011 fourth quarter GDP figures l President Barack Obama crunch. Admittedly, the stock sovereign debt concerns have
results. on Tuesday. l The Japanese unemploy- gives his State of the Union remains a long way below the all alleviated in recent days, traders
ment rate and overall address on Tuesday. time highs of the dot-com bub- are becoming increasingly con-
l WH Smiths will hold its l The US January con- household spending figures ble, but with analyst support cerned about rising inflation in
annual general meeting sumer confidence index is are posted on Thursday. l On Tuesday, the Indian edging up too, the numbers later China. With the FTSE 100 so
and issue a trading update published on Tuesday. President gives a national this week could prove to be heavily overweight in commodi-
on Wednesday. l The all important US address for Republic Day. something of a catalyst. The cur- ty related stocks, any negative
l On Wednesday, the Bank fourth quarter GDP figure rent IG Index price is 279.5p- shift in sentiment is likely to
l On Thursday, Nokia will of England releases the min- is announced on Friday. l UN Secretary General 280.4p. send it sharply lower. ETX
issue its fourth quarter utes of its last meeting and meets with the Greek The world’s sixth largest Capital is quoting 5,912-5,913
2010 results and Tullow Oil the US Federal Open l The EMU’s broad meas- Cypriot and Turkish Cypriot insurer Aviva has been trending for the UK 100 rolling daily con-
will publish a trading Market Committee makes a ure of money supply (M3) leader to discuss the reunifi- upwards since 1 December. The tract.
update. rates announcement. is released on Friday. cation of Cyprus on latest news on the company is Donata Huggins
Wednesday.
Lifestyle THE SAVOY GRILL’S 23
TRIUMPHANT RETURN
| Travel REVIEWED IN TOMORROW’S
LIFESTYLE SECTION
“ W
OW,” says my (non-Jewish) Tel Aviv, with its high- nistic, forget-the-politics-and-your-woes
friend. “Whenever you’ve rises and long beach, enclave in Israel. You can dance with drag
banged on about how gor- seen from a rocky queens, gyrate in a club done up as a MORE QUALITY INCLUSIONS THAN ANY
geous Israeli men are, I enclave in Jaffa. church complete with stained glass win- OTHER RESORTS ON THE PLANET
always thought you were just being biased. Below: the Dan Tel dows and an altar, pick up a threesome on
But you weren’t. They are. This is Aviv – with its iconic a rooftop dancefloor or eat the finest food
madness.” rainbow front – enjoys you will ever find in a posh, mosaic-tiled
Olivia and I are one-and-a-half hours off a prime position on restaurant.
our brilliantly Israeli El Al flight – think the beach. Back to HaMaoz. We find some space
SAVE 30%
warm bread rolls, smoked salmon, mid- next to an almost comically attractive *
UP TO
aisle prayer, non-stop gossiping between young man, who is chatty and friendly,
flight attendants and passengers because informing us that he is a domestic pilot *
Israel is small and “everyone knows every-
one”. Having dropped our things in a sea-
and beach lover – his regular spot is on
Gordon Beach (the long Tel Aviv beach is
PLUS UP
TO AN EXTRA £300 PER COUPLE
facing room at one of Israel’s oldest hotels, divided into several parts; Gordon isn’t far
the Dan (pictured below), we’re now in a from our hotel) and we are welcome to join
bar. him there the next day, Wednesday (mid-
The bar is called HaMaoz (King George week beach lounging is the norm in TA).
32) and, like everywhere else cool in deli- When he leaves, we meet someone else,
cious but derelict Tel Aviv, looks like noth- an intense, bald-headed advertising cre-
ing much on the outside. Inside, though, ative, who invites us to his apartment for
and on the covered, somewhat sleepily- some supper, despite the hour being after
guarded terrace (no bombings for a while), 1AM. We contemplate his offer (friendly
it is rammed to the rafters with hipsters. rather than creepy in the context of a
The bar is done up to be like a living room, country in which European social norms
with fridge magnets, homey sofas, cup- are all but meaningless and midnight din-
boards, home-style toilets and other recy- ners, or 3AM street snacks of bourekas and
cled domestic bits and pieces. This is a falafel are de rigueur), but decide to head
typical example of Tel Avivian bar style: des- home, via another bar on the street. It’s
perately creative, as though its customers’ packed despite being 2AM on a Tuesday
Sandals Royal Caribbean Resort & Private Island, Jamaica
lives depend on having somewhere super- night, with more cool and beautiful people
cool to see and be seen and to drink, at lounging in luxurious chairs and talking
night. In some ways, they do – known as intensely at the bar. JANUARY PRICE FREEZE. TRAVEL AT 2010 PRICES!^
the Bubble, Tel Aviv stands apart as a hedo- The next day we hit the beach, the puls-
ing heart of Tel Aviv. Here, hippies (and SAINT LUCIA SAINT LUCIA BAHAMAS
there are many in Israel – as anyone who
has travelled to India will know), models,
pervy old men, ball-players and posers
come together. It stretches from the Hilton
at one end all the way to the minarets and
pale stone of Jaffa at the other. It’s Sandals Halcyon Beach Sandals La Toc Sandals Royal Bahamian
November but the sun is scorching at 30 7 nights Luxury Included® 7 nights Luxury Included® 7 nights Luxury Included®
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Heaven – but we soon get twitchy feet and WAS £1873 NOW fr. £1399 WAS £2016 NOW fr. £1499 WAS £2103 NOW fr. £1659
begin to stroll. SAVE £474 p.p. SAVE £517 p.p. SAVE £444 p.p.
We wander into Neve Tsedek, the oldest
quarter of the city and its most charming – ANTIGUA JAMAICA JAMAICA
in a sad departure from its humble origins,
this also makes it the most expensive.
High-end boutiques selling interesting
clothes – many made by the new wave of
avant-garde Israeli designers – sit cheek by
jowl with patisseries, luxury ice cream par- Sandals Grande Antigua Sandals Grande Riviera Sandals Whitehouse
lours and wine bars. A new development at 7 nights Luxury Included® 7 nights Luxury Included® 7 nights Luxury Included®
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street, Shabazi, is a favourite with the WAS £1963 NOW fr. £1495 WAS £1532 NOW fr. £1199 WAS £1902 NOW fr. £1489
numerous French tourists and contains SAVE £468 p.p. SAVE £333 p.p. SAVE £413 p.p.
beautiful bistros, stalls and boutiques.
We dip into a split-level bookshop, Visit www.sandals.co.uk, call 0800 742 742 or see your local travel agent
which feels like somebody’s house, and *Book by 28th February 2011 for travel up to 26th December 2011. Discount varies depending on room category booked between: 25% plus £100 saving
spend a while among the wonderful range per couple for entry level rooms, 30% plus £200 per couple for guests in Concierge level rooms and 30% plus £300 per couple for guests staying in a Butler
Service suite. Discount is off accommodation portion only. Minimum stay 7 nights. Terms & conditions and blackout dates apply. Subject to availability.
of Jewish and Israeli history and politics 3ULFHVDUHSHUSHUVRQDQGDUHEDVHGRQWZRSHRSOHVKDULQJDGHOX[HURRPIRUQLJKWVDQGLQFOXGHÀLJKWVZLWK%ULWLVK$LUZD\VDOOPHDOVSUHPLXPGULQNV
all land and water sports, transfers, tips and taxes. Prices are subject to change & availability and are correct at time of print. ^Based on lead-in room
FDWHJRU\ ÀLJKWFODVV
CONTINUE ON PAGE 24
24 Lifestyle | Gadgets and Travel CITYA.M. 24 JANUARY 2011
European
Nintendo leaps
CONTINUED FROM PAGE 23 realm. One restaurant, Carmela B’Nachala
(Hatavor 46), sits on Carmel’s fringes to
books. Olivia selects an amusingly incon-
gruous accompaniment to our decadent social norms better absorb its fresh produce, and the
meal I once had there is still in my all-time
beach-lounging and bar-hopping: the con-
are all but top five dinners. The herb salad will forev-
A
FTER being surrounded by the latest in 3D technology for a
week at the Consumer Electronics Show in Las Vegas, the
sight of two-dimensional images – a video of a puppy playing,
W
HO can begin to describe where it belongs.
Jerusalem? The religious centre Thank the lord, then, that Nintendo is almost ready to launch its
of the Western world and much much-hyped 3DS. The portable console will hit the UK on 25 March,
of the East, it is Tel Aviv’s polar after an embarrassing delay that resulted in the firm missing the
opposite. Tel Aviv has a beach, Jerusalem lucrative Christmas market, and while they haven’t let me get my
has mountains. Tel Aviv has a party atmos- hands on one yet, what I have seen so far looks impressive.
phere; Jerusalem has a studious one I got a chance to play with some of the first portable glasses-
(though you can still stay out to 4AM any free 3D gadgets at CES and the depth that even a small screen can
night of the week quite happily). Yeshiva achieve is astonishing. Judging by the demos Nintendo showed off
students and the ultra orthodox dominate last week, this translates nicely to its trademark cartoony games.
the streets; the Via Dolorosa, Western Wall The dual-screen device is also packing motion and gyro sensors
and Church of the Holy Sepulchre is their (although these clash with the 3D technology, which demands the
stomping ground and that of the Arabs device is held still, meaning you have to go into 2D mode to take advan-
who share the city. tage of them), and Nintendo has introduced its own version of the App
But we’re not here to worship or study. Store, allowing it to cash in on the trend for casual and retro games.
We’re here to stay at Israel’s second design The Japanese firm has already unveiled a host of launch
hotel (the first is the beautiful, always- titles, including new versions of Street Fighter and Pro
booked Montefiore in Tel Aviv) and swimming pool in the basement, too, Above: the Mamilla’s Evolution Soccer. So far so good. The catch is the £229
Jerusalem’s first – the Mamilla. which – though dark – is sensually attrac- rooftop bar overlooking price tag. Will gamers be willing to shell out such a hand-
It is a remarkable hotel and well worth tive with leaf designs on the dark blue the Old City. Left: part some sum for a portable device (more than a standard
the flight alone. Built from pale Jerusalem walls and dark wood decks. of the hotel’s high Xbox360 console)? I doubt it. Expect prices to fall after
stone, it encroaches on the Mamilla Mall, Our room was spacious and minimalist, ceilinged foyer. Below: a hardcore fans have finished flashing the cash.
a long stone passageway with shops and with half-moon shaped windows looking bedroom. One thing for sure is the new PlayStation Portable 2
cafes that leads to the walls of out on the Mamilla Café and, beyond (PSP2), which is set to be unveiled sometime this week,
the Old City. From many that, the Old City. Israeli sparkling has a lot to live up to. Sony has already confirmed it will
of the rooms – and the and red wine met us in the not feature a 3D screen, meaning it will either have to be
hotel’s rooftop bar – room – and the earth-toned very powerful or very cheap to compete (the PSP has
you have a perfect bathroom was delicious. already struggled against the DS, selling just 18m units in
view of the Old Not that we spent much the US compared to Nintendo’s 47m).
City. I can report time there – we had the With games on mobile phones advancing at a remarkable
that a martini Old City to see, sheeshas pace, this could well be the last great battle of the stand-
goes extraordi- to smoke, the stunningly alone portable consoles. Apple’s iPhone and iPod Touch are evolving into fully-fledged
nary well with a refurbished Jewish gaming machines in their own right and Sony is set to launch its own PlayStation
night-time view Museum to visit (newcom- phone. But for now, clever money is on Nintendo to come out victorious.
of the Dome of ers to the city should see
the Rock. the definitive Holocaust
Like almost Museum, Yad Vashem) and WHITE BLACKBERRY TORCH/iPHONE
every hotel, restau- bars to hit (there are numer- As Apple boss Steve Jobs – the man who drove a stake through the
rant and café in ous and busy hangouts on the heart of the beige PC – knows too well, colour is important. And in the
Jerusalem, the Mamilla Mamilla’s doorstep). mobile phone world, white is very much in this season. First up is a new
is completely, 100 per cent One of these bars was the hotel’s version of BlackBerry’s flagship Torch handset. The white 9800 will be
kosher and Orthodox Jewish- own Mirror Bar, with a disco feeling, dark much the same as its monochrome sibling, only brighter, presumably for
approved. We arrived on a Friday night, lights, plush seats, lots of glitter, a DJ people wanting to be noticed typing their incredible important emails on
the beginning of the Sabbath, to be con- blasting chart hits and an enter- the underground. Not to be outdone, Apple is set to respond with its very
fronted with a programme of religious taining mix of orthodox Jews own white version of its iPhone 4.
services, songs and special lifts that stop at on the pull; businessmen let-
every floor to prevent having to press any ting their hair down and –
buttons (this counts as anti-Sabbath well, us. HYDRA (RAZER)
exertion). The spa, Akasha, High definition 3D screens are grabbing the headlines. But for gamers,
Meat and dairy cannot be combined in looked beautiful but three dimensions are becoming de rigueur off screen too. We got our
a kosher kitchen, so separate meat and had yet to open on our hands on Razer’s latest motion sensing controller, the Hydra. The unit fea-
dairy restaurants are the norm in super- visit. Now open, all the tures two separate hand-held devices which are tracked by an electro-
religious Jerusalem. The elegant Mamilla Mamilla needs is for the magnetic field, doing away with the need for a motion sensing camera.
Café is dairy and we had some delicious snooty service at the This allows gamers to interact with the screen with incredible precision
salads and cakes there – overlooking the front desk – we were not and pull off seemingly complex moves with relative ease. For now, the
Mall from a flower-strewn terrace and met with the efficiency Hydra will only work with Valve’s upcoming title Portal 2 (which is out
white-tiled tables. There are a few other nor the helpfulness suit- soon on Xbox 360, PlayStation 3, and PC), but something this good will
restaurants in the hotel too – you can ing a hotel of this calibre – surely be rolled out across other titles soon.
snack at the rooftop and Mirror bars, dine to be sorted out.
in the Dining Room, and sneak a coffee at Jerusalem can already lay
the Espresso Bar. In short, you won’t go claim to having one of the world’s iPAD 2
hungry at the Mamilla (or in Israel). most stylish and interesting hotels. I hope More than 80 tablets were unveiled at the Consumer Electronics show
The intriguing thing about the Mamilla the rest of Israel follows suit. earlier this month but none managed to knock the iPad from its perch.
is the way orthodoxy meets world-class From US$390 for a double room, incl breakfast Now the competition may just have got even tougher, with rumours that
boutique elegance. It is a wonderful meet- (www.mamillahotel.com). In Tel Aviv, Zoe stayed the latest version of the all-conquering device could hit stores as soon as
ing of old and new. Designed by superstar at the Dan, which has double rooms starting at next month. The iPad 2 is expected to feature front and rear facing cam-
Israeli architect Moshe Safdie, light and US$180, incl breakfast (www.danhotels.com). She eras and our money is on a more sophisticated multi-tasking system akin
space and stone dominate all the central flew with El Al, which operates twice daily flights to that on the impressive BlackBerry Playbook. At the risk of going out
areas, which are given life and colour with from London-Tel Aviv (apart from Fridays) from on a limb, we think this will be the gadget to own this year.
plush, expensive furniture. There’s a £265 return. www.elal.co.il
CITYA.M. 24 JANUARY 2011 Lifestyle | TV& Games 25
SKY SPORTS 1 1am WWE: NXT 2am Live 12am CSI: Crime Scene 3.25am The Loop 3.50am Life 4.40am Rory McGrath’s Best
SATELLITE & CABLE
7pm Live Monday Night WWE: Late Night – Raw Investigation 2.50am Unexpected 4.30am-6am of British Engineering 5.30am-
Football 10.30pm The Sky 4.15am-5.15am Squash Charmed 4.30am Four Switched 6am How Does That Work?
Sports Years 11.30pm Weddings 5.20am-6am Maury
Netbusters 12am SPL Round- BRITISH EUROSPORT HISTORY DISCOVERY HOME &
Up 12.30am Monday Night 5.30pm Caribbean Twenty20 BBC THREE 7pm Heir Hunters 8pm HEALTH
Football 2.30am Sports Cricket 8.30pm Australian 7pm Michel Roux’s Service America: The Story of the US 7pm A Baby Story 8pm 10 BAKING MADE EASY
Unlimited 3.30am Watersports Open Tennis 11.30pm Game, 8pm Hotter Than My Daughter 9pm Pawn Stars 10pm Years Younger 9pm Real ER: BBC2, 8.30PM
World 4.30am Max Power Set and Mats 12am-6am Live 8.30pm Snog, Marry, Avoid? American Pickers 11pm The The Bronx 10pm Untold Lorraine Pascale turns her attention to
5.30am-6am Netbusters Australian Open Tennis 9pm Laura Hall: My Battle True Story 12am Pawn Stars Stories of the ER 11pm modern classics, preparing macaroni
with Booze 10pm EastEnders 1am American Pickers 2am Chicago Medical 12am Real and cheese, Swiss roll and focaccia, as
SKY SPORTS 2 ESPN 10.30pm Being Human America’s Toughest Jobs 3am ER: The Bronx 1am Untold well as sharing tips on food presentation.
7pm Bass Fishing 8pm NFL 6.30pm Talk of the Terrace 11.30pm Family Guy 12.20am Life After People 5am-6am Stories of the ER 2am Chicago
10pm Extreme Carp 10.30pm 8pm NHL 10pm Between The Laura Hall: My Battle with Deep Sea Detectives Medical 3am 10 Years Younger
Soccer AM: The Best Bits Lines 10.30pm Pardon the Booze 1.20am Hotter Than 4am Bringing Home Baby
11.30pm Bass Fishing Interruption 11pm ESPN Game My Daughter 1.50am Snog, DISCOVERY 5am-6am A Baby Story
12.30am European Tour Golf of the Week 11.30pm FA Cup Marry, Avoid? 2.20am Being 8pm How Do They Do It?
1.30am PGA Tour Golf 2.30am Preview Show 12am Live Human 3.20am Ready Steady 8.30pm How It’s Made 9pm SKY1
Wonderful World of Golf 4am- Basketball 2am Live Basketball Drink 4.20am-5.20am Michel Aircrash Confidential 10pm 8pm Road Wars 9pm Dream
5am PGA Tour Classic 4am ESPN Press Pass 4.30am Roux’s Service Out of the Wreckage: Plane Lives for Sale 10pm Mental
Between The Lines 5am-6am Crash Survivors 11pm 11pm Inside: The Prison Code
SKY SPORTS 3 European Rallycross E4 Surviving the Cut 12am Bear 12am Road Wars 1.50am
7pm Show Jumping 8pm 7pm Hollyoaks 7.30pm Friends Grylls: Born Survivor 1am Miami SWAT 2.40am 99 Most HOME AND AWAY
Extra Time 8.30pm Wild LIVING 9pm Glee 10pm Tool Academy Deadliest Catch 2am Bizarre: Weird and outlandish CHANNEL 5, 6PM
Spirits 9pm Squash 10pm 7pm Ghost Whisperer 8pm 11.05pm Rude Tube 12.05am Mystery Investigator: Olly crimes. 3.30am The 4400 Marilyn tries to say goodbye to the
WWE: NXT 11pm WWE: Late Nikita 9pm America’s Next Top Scrubs 1am RuPaul’s Drag Steeds 3am How the 4.20am Don’t Forget the Lyrics people of Summer Bay, and April’s plan
Night – Bottom Line 12am Model 10pm Four Weddings Race 1.50am Rude Tube Universe Works 3.50am 5.10am-6am Are You Smarter to get Liam and Bianca back together
WWE: Late Night – Afterburn US 11pm Criminal Minds 2.45am Beauty and the Geek More Industrial Revelations Than Your 10 Year Old? is thwarted by her mother’s arrival.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
QUICK CROSSWORD
SUDOKU KAKURO
21 38 15 16 20 13
13 5 6
17 24
35 23
Place the numbers from 1 to 9 in each empty cell so that each 14
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 8 4 8
above or to the left of it. 12
You can only use the digits 1-9 5 21
and you must not use the
11 20 22 39
30 10
same digit twice in a block. 34
The same digit may occur 10 7
11 27
more than once in a row or
column, but it must be in a
14
19
17
6 4
15
45
separate block.
6 15
16 12 13
ACROSS DOWN
2 Entrance used by 1 Section of
WORDWHEEL M S
performers and other
theatre personnel (5,4)
6 Spokes (5)
writing (9)
2 Grasslike marsh
plant (5)
Using only the letters in the Wordwheel, you have 7 Animal similar to 3 Relating to
ten minutes to find as many words as possible,
I A the giraffe (5) birds (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters S 9 Diving bird of
northern seas (3)
4 Call forth (5)
5 Transmitting
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
P E 10 John ___, pioneering live (2-3)
B A N T A M M C
8 5 6 7 3 9 4 1 2 SUDOKU
as true (5)
17 Sun-dried brick (5)
13 Wander aimlessly
in search of
9 8 2 1 4 3 1
I U A R M A D A
L A T R I N E D P
7 1 9 4 19 The type of wind that pleasure (3)
L B I N C O M E 3 8 2 3 6 2
blows no good (3) 15 Further from
S I R O C C O N R 1 4 2 7 6 3 2 1 20 Despised (5) the centre (5)
T
E T A
S P
W
A N
I N
C A K E
8 6 6
7
9
4
9 5
9 3
WORDWHEEL 21 Board used as a 16 Move furtively (5)
W A P I T I E V
2 8 3 9 8 4 2 The nine-letter word was planchette (5) 17 Not silently (5)
I I O R G A N Z A
R E T I R E G N 4 9 3 2 8 5 6 7 1 22 Employee who mixes and 18 Flexible twig of a
3 5 2 1 4 9 8 7
TURNSTILE
L E R H E S U S serves alcoholic drinks (9) willow tree (5)
Sport
26 CITYA.M. 24 JANUARY 2011
FOOTBALL ROUND-UP
Levy: Stadium
Ancelotti still trusts
Chelsea’s old guard
decision must be
CHELSEA manager Carlo Ancelotti
insists the club’s older players are not
past their sell by date.
The champions’ recent poor form
FOOTBALL anyway because it is not for sale.” TIMELINE | QATAR AND MAN UTD
BY FRANK DALLERES A spokesman for Qatar Holding,
which bought Harrods for £1.5bn last Jan 2010 United visit Qatar for a sunshine
MANCHESTER UNITED insist the club year and owns stakes in Barclays and training break, sparking speculation of interest
is not for sale and have denied sugges- the London Stock Exchange, declined Prior has been dismissed for two ducks in two innings Picture: ACTION IMAGES
tions that the Glazer family, which to comment on a bid for United when in the club from the mega-rich emirate
owns the club, has held talks with a
Qatari consortium over a potential
£2bn takeover.
contacted yesterday by City A.M.
Rumours of Qatari interest in
United, one of the most valu-
Nov 2010 Having previously derided Qatar as
“some unknown country”, United boss Sir
Alex Ferguson visits Qatar to speak, for free,
Struggling Prior needs more time
Qatar Holding, the £40bn invest-
ment company owned by the Gulf
kingdom’s royal family, is thought
able brands in sport,
emerged 12 months ago
when the club visited
at a sport conference, where he endorses
their bid to host the 2022 World Cup
to adapt to opening, says Strauss
to have had a £1.5bn offer for the the emirate for a mid- Nov 2010 Glazers pay off costly PIK loans,
Premier League leaders rebuffed season sunshine break. fuelling rumours they’re preparing to sell the scorers in each of his innings since
▲
CRICKET
by the Glazers. Speculation resur- Nov 2010 The following day it emerges the his return to the side as England con-
The American family, led by faced in December as BY JAMES GOLDMAN tinue to struggle to find the right
Malcolm Glazer (right), who Qatar announced its arrival Glazers’ long-standing spokesman, Tehsin ENGLAND captain Andrew Strauss opening combination.
bought United in 2005 for on the global football stage, Nayani, is to leave his post, with no plans to insists Matt Prior will remain at the But after the comprehensive four-
£790m but have grown first by controversially win- recruit a replacement top of the order despite successive wicket defeat in Sydney, Strauss
unpopular with the club’s ning the vote to stage the Jan 2011 United chief exec David Gill, on a trip ducks as Australia moved 3-0 ahead in remained adamant that Prior is the
fans, are said to want 2022 World Cup and then by the best of seven ODI series yesterday. right man for the job.
to the Gulf, says Premier League clubs want a
nearer £2bn. agreeing a £125m shirt Test gloveman Prior was recalled to He said: “I don’t think [it will
A United spokesman sponsorship deal with winter break. Ferguson says he is in favour of the 50 over set-up last week, at the change] I think I will be opening with
said: “There has been no Spanish champions switching the season to the summer. It comes expense of Steven Davies, following a him,” Strauss said. “We’ve got to give
approach of any kind to Barcelona, through its amid talk of European leagues rearranging near three-year absence, just in time him an opportunity to get used to the
buy the club and one non-profitable arm, calendars to aid a winter World Cup in Qatar for World Cup selection. role again. We’re still happy with his
wouldn’t be welcome the Qatar Foundation. Prior has, however, failed to trouble capabilities at the top of the order.”
CITYA.M. 24 JANUARY 2011 27
RUGBY UNION
BY JAMES GOLDMAN
▲
RUGBY UNION
WASPS director of rugby Tony Hanks BY JAMES GOLDMAN
admits his side have been left with a
sense of ‘what could’ve been’ after RFU chief executive John Steele has
they crashed out of the Heineken Cup warned England manager Martin
despite a last-gasp win over reigning Johnson that anything other than a
champions Toulouse at Adams Park. top two finish in the upcoming Six
In front of a record home crowd Nations tournament would rank as a
(10,014) at the Wycombe venue David major disappointment.
Lemi’s last-minute try secured a Johnson’s side have progressed
deserved victory, but hopes of pro- well over the last year, posting
gression to the quarter-finals had impressive back-to-back home and
already been dashed prior to kick-off away wins over Australia, and Steele
when news of pool leaders Leicester’s is keen for the side to lay down fur-
win over Perpignan filtered through. ther markers ahead of September’s
Victory at least ensured Wasps World Cup.
qualified as top seeds for the quarter- “Given we have three home games
finals of the Amlin Challenge Cup, Lemi’s try sunk and some momentum from the
where they will travel to Harlequins, Toulouse in front autumn we believe finishing in the
but it could not mask their sense of of a record home top two is realistic,” said Steele.
regret following last weeks surprise crowd “Third or below would be disappoint-
and damaging defeat against Picture: GETTY ing given our current position.”
Glasgow.
“There will be plenty of times over
the next two months, particularly
when we see Toulouse play in the
quarter-finals, when we will think
Northampton land Ulster draw and it’s Leinster for Leicester
‘what could have been’ but we have to TOP SEEDS Northampton will host capacity in excess of 15,000. Leicester Leinster v Leicester
move on,” Hanks said. Irish province Ulster in the quarter- travel to face 2009 champions Perpignan v Toulon
“At least we fronted up and the finals of the Heineken Cup. Leinster, Perpignan play Toulon and Biarritz v Toulouse
guys can look in the mirror and be The Saints, who won all six of their Biarritz host Toulouse in two all- * Ties to be played 8/9/10 April
proud of the performance. group matches, will have home French ties – the latter a repeat of last
“Everyone really hurt this week. advantage if they reach the semis, year’s final. Heineken Cup semi-finals:
The first few days [after the Glasgow but may have to switch the venue of Leinster/Leicester v Biarritz/Toulouse
defeat] were horrible but rather than their last-eight tie away from Heineken Cup quarter-finals: N’hampton/Ulster v Perpignan/Toulon
turn up today sulking about it, we Franklin’s Gardens to a venue with a N’hampton v Ulster * Ties to be played 30 April/1 May
attempted to repay our supporters.”
historic triumph
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Elsewhere in Melbourne 2008 having made just one bogey all week.
▲
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