BUSINESS WITH PERSONALITY HAVE AN ALE ZUCKERBERG INKS VIDEO OF A TIME CALLS DEAL WITH SKYPE ARTISAN BEER COMES TO THE A FIRST FOR FACEBOOK PAGE 3 CITY PAGE 22 Issue 1,419 Thursday 7 July 2011 www.cityam.com FREE Chancellor NEWS CORP FEARS on hacking target list

▲ MEDIA DELAY TO SKY BID BY STEVE DINNEEN CHANCELLOR George Osborne yester- ▲ MEDIA ANALYSIS l British Sky Broadcasting Group PLC day joined the unenviable roll-call of BY STEVE DINNEEN p 827.00 people targeted by News of the World 850 6 Jul phone hackers. NEWS Corp bosses yesterday feared 845 Police visited Osborne last night to they may be forced to delay the firm’s 840 tell him that his personal details multi billion pound bid for BSkyB, as 835 appeared on notes kept by convicted the toxic political and commercial fall- 830 criminal Glenn Mulcaire and shamed out of the phone hacking scandal con- 825 former News of the World royal editor tinued to gather pace. 820 Clive Goodman. Bankers close to the deal told City It is not clear if Osborne’s name 30 Jun 1 Jul 4 Jul 5 Jul 6 Jul A.M. that negotiations have ground to and number were added to the list a halt while both sides consider the before or after he became chancellor. effects the ongoing scandal could have ANALYSIS l News Corp A spokesman for the Osborne said: on the proposed takeover. Even if the $ 17.94 “George was very grateful to the 6 Jul bid is waved through by the govern- 18.50 police. Frankly he thinks there are far ment as expected, an offer could be 18.25 more serious allegations surrounding pushed back by weeks. 18.00 the whole hacking affair and fully sup- Shares in Sky tumbled more than ports the police in their investiga- two per cent as investors worried that 17.75 tions.” He was first contacted by police the long mooted takeover – and the last week. juicy premium it carries – could now Osborne joins an ever-expanding be in jeopardy. News Corp also plum- 30 Jun 1 July 4 July 5 July 6 July list of celebrities, victims of crime and meted 3.24 per cent on the Nasdaq as public figures who appear to have had more blue-chip companies axed their The phone hacking scandal appeared to weigh on News Corp boss Rupert Murdoch yesterday, as shares took a hit their voicemails intercepted by the adverts in the News of the World. newspaper. Police are understood to be just days Ofcom is also unlikely to step in at of the World paid tens of thousands of step of publicly backing Rebekah Last night it emerged families of sol- from arresting a number of News of this stage with a “fit and proper” own- pounds to police officers for informa- Brooks, chief executive of the newspa- diers killed in Iraq and Afghanistan the World journalists and executives. ership review, despite David Cameron tion, with suggestions then-editor and per’s parent company News could be among those targeted. Despite public outcry over revela- suggesting this was a possibility. former Downing Street spin doctor International, who was editor during News of the World owner News tions the newspaper sanctioned the However, the watchdog could still play Andy Coulson authorised the pay- many of the instances of hacking. He International said it would be hacking of phones belonging to mur- an important role in the takeover saga ments. The spotlight is also on police branded the paper’s behaviour “absolutely appalled and horrified” if der victims and those killed in the 7/7 by triggering a review should News chiefs, who have had access to docu- “deplorable and unacceptable” but the revelation is true. bombings, as well as a string of celebri- Corp press ahead with a formal offer. ments created by Glenn Mulcaire, the said Brooks is still the right person to Murdered schoolgirl Milly Dowler’s ties, Jeremy Hunt is expected to give Cameron yesterday backed an inde- jailed private investigator who worked lead the group. phone was hacked after her murder the bid the green light. The culture sec- pendent inquiry into the revelations for the News of the World, but have Publisher Trinity Mirror yesterday and the parents of Holly Wells and retary says he is bound by law to exam- of widespread hacking at the UK’s only now contacted some victims. saw its shares jump 17 per cent on Jessica Chapman, both killed by Ian ine only whether media plurality biggest Sunday newspaper. His calls News Corp boss Rupert Murdoch hopes it could land adverts axed from Huntley, are also said to be victims. would be adversely affected by the bid. came amid fresh allegations the News yesterday took the unprecedented its rival. FOCUS ON HACKING: P6-7 FOCUS ON HACKING: P6-7

▼ ▲ ▲ ▼ ▼ Certified Distribution FTSE 100 6,002.92 -21.11 DOW 12,626.02 +56.15 NASDAQ 2,834.02 +8.25 £/$ 1.60 -0.01 £/¤ 1.11 unc ¤/$ 1.43 -0.01 02/05/11 till 29/05/11 is 103,467 2 News CITYA.M. 7 JULY 2011 EU guilty of credit rating hypocrisy NEWS | IN BRIEF Linklaters to open in Abu Dhabi Magic circle law firm Linklaters will this morning announce plans to open a wrong, but rating agencies got much time their debt is downgraded; but agencies as tools of American imperi- stand-alone office in Abu Dhabi, of what they deserved. there is an even bigger issue in alism. A new EU-controlled body, of responding to client demand in the Since then, however, they have Europe. The European Central Bank course, would have zero credibility as region. The office will be led by Middle upped their game. The repeated down- can’t accept the worst kind of debt as it would merely end up being a propa- East managing partner and project grades of sovereign debt in the collateral when engaging in liquidity ganda machine. There is, however, a finance specialist Sarosh Mewawalla, Eurozone have been spot on. So it beg- operations – but the economies of sev- case for drastically shaking-up the supported by New York finance partner gars belief to see the governments in eral Eurozone countries depend on it. rules. Rather than relying on a small Paul Kruger and Dubai corporate part- question – all of which were quick to Hence why it too has been dismissing oligopoly of officially approved credit ner Nick Garland. EDITOR’S LETTER condemn the agencies’ past over-exu- the judgment of the rating agencies, rating agencies, governments around berance – reacting with mock outrage bending the rules and diluting its the world should deregulate the mar- Goldman and RBS aided in crisis ALLISTER HEATH whenever anybody is downgraded. If standards to keep the show on the ket and move the onus back on Goldman Sachs, Lehman Brothers, RBS anything, the US agencies are still road. The whole thing is a mess, based investors to make their own decisions and UBS were the biggest beneficiaries SOME people simply can’t win. The being too soft. Dagong, the Chinese on self-deception about the real, disas- as to the riskiness of an asset. This of very short-term Federal Reserve loans largest credit rating agencies – agency, cut the UK’s rating from AA+ trous state of countries such as would reduce the influence of credit extended at the height of the financial Moody’s, Standard & Poor’s and Fitch to A- earlier this year; it previously Greece, Portugal and others. A major, rating agencies, which have become crisis, according to data out yesterday. – were rightly pilloried for providing downgraded the US. Such blunt, fresh terminal solvency crisis – with coun- embedded within the regulatory sys- The Fed’s figures showed Goldman took ridiculously optimistic advice in the thinking is to be welcomed (though tries that will never be able to repay tem since legal changes in the US in $15bn in exchange for securities ranging run-up to the financial crisis, deeming Dagong’s rating of China looks a tad their debts – is being dressed up as a the 1970s, while allowing companies from Treasuries to mortgage bonds. bundles of sub-prime mortgages to be optimistic, so nobody is perfect). The liquidity crisis – a temporary cash flow that are able to provide value-adding UBS, RBS and Lehman took $10bn each. as safe as the debt of very cautious and Big Three US agencies ought to down- problem that can be resolved via analysis to prosper. It would also send successful companies or governments. grade even more of the Eurozone’s handouts or liquidity aid. a strong signal to investors that the Buffett joins bid for Citi unit It was nonsense, based on wrong- sovereign debt, as well as that of sever- In typical delusional fashion, the ultimate responsibility to take the Warren Buffett’s Berkshire Hathaway headed models and assumptions, and al other nations. That this doesn’t suit Europeans are mulling setting up right decision lies with them – and has joined the group bidding for it helped make the bust much worse. the various political agendas at play their own credit rating agency to pro- confirm that ratings are merely one Citigroup's consumer lending unit Many of the claims made about finan- should be of no relevance. vide “another opinion” on the worthi- opinion among many. OneMain. Buffett is thought to have cial players’ role in the crisis have Governments hate the fact that ness of their debt. Bizarrely, many [email protected] teamed up with Centrebridge Capital been exaggerated or are downright they have to pay more in interest each French socialists still see the large Follow me on Twitter: @allisterheath Partners and Leucadia National Corp.

7th Floor, Centurion House, 24 Monument Street, London, EC3R 8AJ US to seize pay Tel: 020 7015 1200 Fax: 020 7283 5334 Email: [email protected] www.cityam.com Editorial Editor Allister Heath Deputy Editor David Hellier at failed banks News Editor David Crow Acting Night Editor Marion Dakers Business Features Editor Marc Sidwell Lifestyle Editor Zoe Strimpel ▲ REGULATION circumstances execs’ pay should be Sports Editor Frank Dalleres BY JULIET SAMUEL confiscated, with the broader “negli- Christine Lagarde stressed the importance of emerging markets Art Director Craig Gaymer gence” favoured over “gross negli- Pictures Alice Hepple BANK executives whose behaviour is gence”. Commercial deemed “negligent” by US authorities The vote also established a debt Sales Director Jeremy Slattery could have up to two years’ worth of hierarchy in winding up a firm, with Lagarde takes swipe at DSK Commercial Director Harry Owen pay confiscated by the state under the FDIC’s costs incurred in resolving Head of Distribution Nick Owen proposals voted into the American the company and debt to the govern- rulebook yesterday. ment topping the list, along with any In the last meeting under its cur- money owed to employees. Other ▲ WORLD ECONOMY ue to change. We have these tectonic Distribution helpline rent chief Sheila Bair, the Federal creditors will be paid off afterwards. plates that are moving at the If you have any comments about the distribution BY STEVE DINNEEN of City A.M. Please ring 0207 015 1230, or email Deposit Insurance Corp (FDIC) voted The status of clawback clauses in moment, and that needs to be reflect- [email protected] five to one in favour of a “clawback” Europe is unclear at present, with EU CHRISTINE Lagarde began her tenure ed in the composition of governance clause in new regulations, which will authorities suggesting that firms as IMF chief with a swipe at her pred- and employment at the Fund.” Editorial Statement allow the government to reclaim write them into contracts. ecessor, saying her leadership will be Among her first appointments is This newspaper adheres to the system of compensation paid to execs whose “more inclusive”. expected to be Min Zhu, a Chinese self-regulation overseen by the Press Complaints banks have to be taken over and Sheila Bair yesterday She used her first speech as new national who was a special adviser to Commission. The PCC takes complaints about the wound up by the state. oversaw the FDIC’s IMF chief to say she will push ahead former IMF boss Dominique Strauss- editorial content of publications under the Editor’s The rule puts flesh on the bones of with reforms to give fast-growing Kahn. Lagarde said that among the Code of Practice, a copy of which can be found at decision to try and www.pcc.org.uk a proposal included in the 2010 Dodd- emerging markets more influence at most pressing issues she faces is deal- claw back pay from Printed by Newsfax International, Frank Act, which overhauls American the global lender. ing with the fallout of the European Beam Reach 5 Business Park, financial regulation. It gives some execs at failed banks The former French finance minis- debt crisis engulfing bailed-out Marsh Way, Rainham, Essex, RM13 8RS clarity to a major question as to when ter said: “The world is going to contin- Ireland, Portugal and Greece. WHAT THE OTHER PAPERS SAY THIS MORNING

BIDVEST CONSIDERS SALE OF FOOD SERVICE UNIT Bidvest, the South African industrial SPOTIFY SIGNS DEAL WITH VIRGIN conglomerate that owns UK food serv- HUFFPO LANDS IN THE UK SPONSORS TAKE UP THE RUNNING FOR GLENCORE BOSS TALKS UP STOCK Spotify and Virgin Media on ice group 3663, is considering selling The Huffington Post, the online news- LONDON 2012 Glencore International boss Ivan Wednesday announced a deal that its Foodservice group, after receiving paper that has shaken up the British Airways has unveiled multi- Glasenberg, who had grown used to could help the music streaming serv- several approaches for the unit that American media establishment, million pound plans to publicly pro- steamrolling obstacles in his nearly ice boost numbers of paying cus- could be worth about $4bn. The arrived in Britain yesterday with its mote its sponsorship of London 2012 two decades at the helm of the com- tomers and reach a wider audience. Johannesburg-based company, the founder vowing to continue its expan- for the first time. The airline's backing modities juggernaut, has more By the end of the year, Virgin Media’s world’s largest food distribution sion worldwide. Arianna Huffington of the Olympics is its biggest ever recently encountered a raft of chal- 4m UK customers will be able to group outside the US, told sharehold- said that the launch of the British ver- sponsorship, and the new campaign lenges underscored by a disappoint- access Spotify’s catalogue of 13m ers on Wednesday that it had received sion of her eponymous news and opin- marks the stepping up of the visibility ing public-markets debut that he songs through their TV set-top box, various unsolicited proposals for its ion website was a prelude to a wider of the companies backing London calls surprising. Glasenberg blamed laptop or mobile phone. Foodservice business. push across the globe. 2012. “external factors” such as the Greek financial crisis for investors’ refusal IRON ORE TO STAY ABOVE $150, SAYS LANDMARK YEAR FOR CROWN ESTATE RUSSIAN AIRLINE EJECTS WESTERNERS STRATEGIC DEFENCE REVIEW HIT to bid up Glencore stock following its VALE The Crown Estate made a record prof- The British chief executive and foreign The National Audit Office has hit out 18 May initial public offering. The price of iron ore will remain it in its last financial year ahead of managers at Russia’s leading budget at the Government’s decision to save above $150 a tonne for at least the proposals that would give the royal airline have been thrown out of the two aircraft carriers while cutting ITALIAN REGULATOR URGES GAS next five years, according to Vale, the family a direct cut from revenues of company in a boardroom coup engi- other key defence capabilities. The REFORM top miner of the commodity. The the £7.3bn property portfolio, which neered by representatives of the oli- report issued yesterday by the Italy should enact financial incen- bullish prediction by Guilherme are paid to the Treasury. George garch Mikhail Fridman. Andrew Pyne, National Audit Office is about the tives to beef up its natural-gas infra- Cavalcanti, finance director of the Osborne last week confirmed propos- the chief executive of Avianova, and decision, taken at the end of last structure, the country’s top energy mining group, is the latest contribu- als to replace the Civil List grant to three senior managers were barred year’s Strategic Defence and Security regulator said Wednesday, in com- tion to a debate on the outlook for the royal household that had been in from entering the company headquar- Review (SDSR), to order two new air- ments that underscored how a recent the iron ore market that has place since 1760 with a 15 per cent ters in Moscow by security guards who craft carriers while cutting other key Italian ban on nuclear energy has polarised analysts and investors. profit share of the Crown Estate. said foreigners no longer worked there. defence capabilities. altered that country’s energy profile. CITYA.M. 7 JULY 2011 News 3 US edges closer PhosAgro share to budget accord Facebook in tie-up with Skype sale fully covered ▲ ▲ US ECONOMY ▲ TECHNOLOGY However, Zuckerberg says the firm implications of the deal are for either CAPITAL MARKETS BY STEVE DINNEEN will shift its focus from adding users side, with no clear method for A TOP Republican floated a tax com- to the number of transactions com- Facebook or Skype to monetise the RUSSIAN fertiliser group PhosAgro promise last night that could revive MARK Zuckerberg yesterday pleted by each person. The amount of service beyond driving more users to has taken enough orders to fully cover hopes for a budget deal, as President announced a tie-up with video calling content uploaded by each Facebook their products. its $500m (£312m) London share sale. Barack Obama warned the US could giant Skype as it bolsters its site subscriber has rocketed in the last The move is a warning shot to The order book for shares being spiral back into recession if a deal is against the threat of Google’s rival year. Google, which last week launched a sold in the company was fully covered not reached soon. social network. The tie-up is the first major beta version of its Google+ social net- by the end of last week, just days into Eric Cantor, the number two official The move, which will allow announcement from Skype since it work, which has received mixed its roadshow of investors. in the House of Representatives, said Facebook users to make video calls, is was bought by Microsoft in a shock reviews. Bankers on the deal went out with a his party could agree to close some tax part of a larger redesign that will also $8.5bn (£5.2bn) deal in May. Facebook has been valued at up to fully covered message yesterday. breaks as part of a budget agreement. add a group chat function and Zuckerberg said it is unlikely the $100bn (£62.5bn) ahead of its mooted The fertiliser producer’s majority Republicans have also tentatively update the appearance of the site. firm will add more of Skype’s premi- 2012 IPO but spooked some potential owner, politician Andrei Guryev, agreed to $150bn-$200bn in increased Facebook also announced it has um functions in the near future. investors last month when it emerged could now opt to sell up to 15 per cent revenues, senator Jon Kyl said. passed 750m users worldwide. It is unclear what the financial it lost users in some mature markets. of his stake in the company. City dealmaker is a prime asset

3i hires top ▲ FUND MANAGEMENT opportunities and that will make ronment: BY ALISON LOCK this appointment a very interest- “They have a ing role for me,” he told City A.M. “I very big SIMON Borrows’ move to fund have got too much energy and opportuni- manager 3i is great news for its interest to be part time at the ty in front rainmaker to shareholders, who gain one of the moment. The appeal of this job of them in City’s best-known rainmakers. was very strong.” the great Borrows, chairman of Greenhill His experience leaves him per- strength of & Co since 2010 and founder of its fectly placed to address the weak- their plat- European business in 2008, advises nesses in 3i’s recovery that are form and the UK’s biggest companies, includ- slowing its performance and frus- internation- boost deals ing G4S, Tesco, Informa, Inchcape trating shareholders. Investors fear al network of and National Express. He has also that chief executive Michael business- advised 3i for almost 20 years, Queen’s investment strategy is not es.” including during its 1994 float. paying off and the market under- ▲ FUND MANAGEMENT improving the performance of every Borrows says he’s keen to get values it by almost 20 per cent. BY ALISON LOCK aspect of our business,” he said. back into the thick of dealmaking. Borrows believes 3i can About six per cent of investors did “3i sees a lot of investment capitalise on a tough envi- SIMON BORROWS PRIVATE equity giant 3i headed off not support Queen’s re-election at investor concerns over its growth the AGM vote. and capital use yesterday as it bol- Borrows joins 3i in the autumn By Alison Lock stered its team with top City rain- from investment bank Greenhill & ANALYST VIEWS: HAS 3i’S PERFORMANCE IMPROVED? maker Simon Borrows, who joins it Co, which he chairs. His move as chief investment officer. should cheer investors hoping for an 3i said it invested £233m in the uptick in 3i’s performance to rein in MICK GILLIGAN | KILLIK & CO CHARLES CADE | NUMIS first quarter of 2011, more than dou- an 18 per cent discount between its ble the amount in the same period share price and net asset value. He in 2010, as it placed £158m into replaces Ian Nolan, who moves to Investments and realisations increased 3i has a plausible long-term strategy to firms such as Go Outdoors. another role. significantly in the period compared to the same become an alternative asset manager focused on 3i chairman Sir Adrian Montague “period last year and Queen reiterated his encour- “private equity, infrastructure and debt. However, also defended 3i’s performance at its ANALYSIS l 3i aging stance. 3i shares have performed well since the vast majority of its portfolio is in European annual general meeting to placate 287.70 292.50 p April and this reaffirms the positive progress buyout/growth investments where we believe its investors concerned that chief exec- 6 Jul being made. We remain positive on the shares at franchise has been weakened. We see 3i as an utive Michael Queen preferred to the current 18 per cent discount to NAV. interesting trading opportunity, though. plough capital into new funds in 287.50 China and India rather than return surplus cash to investors by buying ” ” back shares. 282.50 BILL BARNARD | EVOLUTION SECURITIES “Our priorities have been to ensure that we retain our financial strength, take a measured and high- 277.50 As expected, 3i’s IMS confirms a healthy level of exits and a pick up in investment, but exits of £337m were ly selective approach to investment, below our forecast. 3i has also been moribund price-wise and sentiment is weak despite increasingly progressive funda- and keep an absolute focus on 30 Jun 1 Jul 4 Jul 5 Jul 6 Jul “mentals. It may be early September before the stock re-rates as confidence in forecasts firms. ” *Exclusions apply, see instore for details. see instore for details. *Exclusions apply,

CITYA.M. 7 JULY 2011 News 5 Fraud office to Barroso hits look into ETFs

▲ TRADING SYSTEMS out at bias in THE Serious Fraud Office (SFO) has launched a probe into the burgeon- ing market for Exchange Traded Funds (ETFs) to establish whether it has the tools to prosecute wrongdo- ing in the industry. downgrades The agency, which prosecutes white collar crime, is examining the risks posed by the products and to ▲ EUROZONE what extent they could be open to terday, the yield on Portugal’s two-year criminal conduct in future. Several BY JULIET SAMUEL debt shot up by 220 basis points to 16.7 regulators have raised fears over a EUROPE lashed out at ratings agencies per cent, with equivalent Spanish and European Commission president Manuel Barroso lashed out Picture: REUTERS lack of transparency around synthet- yesterday after a Moody’s downgrade Irish debt also rising 130 and 250 basis ic ETFs. of Portugal sent peripheral debt costs points respectively. soaring across the continent. The EU is currently drawing up leg- In a sign of growing frustration islation to dethrone the agencies by Almost a third of banks among EU officials, European removing their legal status, so as to Germany calls Commission president Jose Manuel stop a round of automatic sales of Barroso attacked ratings agencies for instruments that are downgraded. being anti-European. But officials have also mooted the could fail EU stress tests for bond swap “It seems strange that there is not a idea of establishing a publicly funded single rating agency coming from EU agency to rival the big three private

Europe,” he said. “It shows there may firms. However, such an agency could ▲

▲ EUROZONE be some bias in the markets when it find it hard to gain credibility in rating BANKING Last week, the EBA’s chief Andrea comes to the evaluation of the specific European sovereigns. Enria revealed that the authority had GERMANY has put a Greek bond swap issues of Europe.” Another proposal would see agencies MORE than a quarter of the European forced banks to resubmit some of back on the table as a model for pri- German finance minister Wolfgang forced to warn states of downgrades Union’s major banks are set to fail the their results after determining that vate sector involvement in fresh aid Schaeuble threatened the agencies three days before publishing them, region’s stress tests, which are expect- they had not been sufficiently pes- for Athens, German finance ministers with “limits”: “We must break the oli- which critics say would lead to leaks. ed to be released next week, Moody’s simistic about possible haircuts on sov- said yesterday. gopoly of the ratings agencies,” he In a sign of anxiety among said yesterday. ereign Eurozone debt. The EBA is The country’s renewed positive said, without detailing how. Eurozone leaders, Irish finance minis- The agency said 26 out of 91 banks staking its credibility on the tests. stance on the bond swap plan comes The furious response from EU offi- ter Michael Noonan has moved to being tested are likely to need extra But Moody’s says that its assump- after warnings from ratings agencies cials came after a sharp rise in the head off concerns about Dublin, say- government assistance. Banks are anx- tions are still not dire enough because that France’s plan of a bond rollover yields charged on the debt of peripher- ing that he could make an extra iously awaiting the results of the tests, the tests “do not assume a sovereign would amount to a sovereign default, al Eurozone nations. €400m of savings next year than is which are the first major task carried default at a time when the risk of a prompting the Eurozone nations to Following the Moody’s downgrade, required under the terms of its out by the new pan-European Banking sovereign default within the euro area devise a scheme to keep Greece from which came after markets closed yes- bailout. Authority (EBA). has increased”. defaulting. 6 Focus on phone-hacking CITYA.M. 7 JULY 2011 Cut-throat rivalry partly to blame

something the British seldom appreci- covered colour printing. The power of phone hacking scandal. Surplus ate – their newspapers are by far the the UK press is not just because British capacity means the industry as a whole is most competitive in the world, and in politicians tremble in front of it, but loss making; proprietors put pressure on many ways the most powerful and because the world media often follow editors to increase sales; editors put pres- professional. its lead. sure on journalists to get scoops; journal- The French intelligentsia are often As a journalist for nearly two ists do things they shouldn’t. Some, in snooty about the British press, but decades, it was always a source of the case of phone hacking into Milly THURSDAY VIEW with nine daily national papers we pride seeing my articles syndicated Dowler’s phone, are simply sickening. have roughly 14 times the combined around the planet. It has long worried me that the media ANTHONY BROWNE circulation of those in France. Editors from across the globe look have power without responsibility; they Competition has helped drive stan- to British papers for tips on how to are the guardians of our freedoms but no ARLY one morning in a village in dards up, in terms of quality, availabil- raise their game. Many of our papers, one guards the guardians. southern France I went to buy a ity and value for money. Le Monde like City A.M., are free. The comparative A decade ago I wrote a cover story for paper, and much to my amuse- doesn’t print on Mondays because lack of corruption in the UK is largely the New Statesmen on corruption in Ement they only had yesterday’s French journalists don’t like working down to the competitive vigilance of journalism, pointing out the hypocrisy of Le Monde – but that day’s Times. The on Sundays, but British journalists the press. journalists attacking politicians for prac- daily availability of British newspa- even work on Christmas day. Many But the downside of the extreme tices they themselves indulge in (it won pers across Europe is a product of European papers have still barely dis- competitiveness is clear from the me no friends). The British public’s indulgence of their out of control media could now be stretched beyond breaking point. Advertisers are putting their money where their mouth is, withdrawing sales to the News of the World. If anything good comes out of all this, it should be a system that ensures hacks and their editors stay on the straight and narrow. Just as the expenses scandal led to politics being cleaned up, hopefully the phone hacking scandal will lead to the media being cleaned up. Anthony Browne is a board member of theCityUK [email protected] Advertisers ditch tabloid

▲ MEDIA from that is unlikely to add up to BY HARRIET DENNYS AND DAVID CROW more than tens of thousands of pounds.” BLUE-CHIP companies’ boycott of the His view was supported by a second News of the World following the fresh City analyst, who believes the publish- revelations in the phone hacking er will take “a tough business deci- scandal could cost News International sion” to stem the damage. “Any loss of millions of pounds in lost advertising advertising money will be for this revenue, according to analysts. Sunday only – because by next week, The tabloid generates about £35m NI will have made a tough manage- in annual advertising revenue, and as ment call to show it is serious about much as half of this could be lost to dealing with the issue.” rival Trinity Mirror in the wake of the Yesterday, The Co-Operative Group, public outcry, according to Panmure Butlins, Halifax and Virgin Holidays Gordon analyst Alex de Groote. also said they will boycott the News of If Ford and Vauxhall – which both the World, while Mumsnet refused to pulled advertising from the News of run an ad for BSkyB, losing revenue of the World pending the outcome of an between £20,000 to £30,000. investigation into the allegations – Media buying agencies represent- maintain their blackout for a year, ing the tabloid’s advertisers supported analysts at Enders estimate it could David Cameron’s calls for an industry- cost NI in the region of £14m. wide investigation into the phone However, Enders’ press analyst hacking allegations. Douglas McCabe told City A.M.: Alex Altman, CEO of Initiative, said: “Advertisers who have pulled ads are “Our role is to provide the clients with not saying they will keep them out for the facts as the situation changes and a year; they are saying they probably to help them through the commercial won’t advertise this weekend. The hit implications.”

FIT AND PROPER TEST by David Crow COULD OFCOM STOP NEWS HAS ANYONE Q A Q. CORP’S BID FOR BSKYB? Q. FAILED A FIT & No. But it could intervene once AND PROPER TEST A. News Corp has bought the satel- BEFORE? lite company and withdraw its Yes. Ofcom recently withdrew a broadcasting licence on the grounds A. broadcasting licence because it that it is not a “fit and proper” was being used to transmit porno- owner of television channels. graphic material at an inappropriate time of day. And one of Ofcom’s pred- IS OFCOM LIKELY TO SAY NEWS ecessors, the Radio Authority, with- Q. CORP DOESN’T PASS THE TEST? drew four local radio licences from It doesn’t have any live concerns millionaire Owen Oyston, after he A. about the suitability of News was jailed for rape in 1998. However, Corp, which already owns 39 per cent Ofcom would be treading new of BSkyB. However this is a fast mov- ground if it withdrew a company’s ing situation and Ofcom could yet licence because one of its subsidiaries change its position. had engaged in criminal activity. CITYA.M. 7 JULY 2011 Focus on phone-hacking 7

ADVERTISERS CITY VIEWS: SHOULD THE HACKING SCANDAL AFFECT THE BSKYB MERGER? PULLING ADS FROM Interviews by Richard Partington & Elizabeth Challing NEWS OF THE WORLD NOJAN BASERI | LONDON STONE SECURITIES MIKE ALSTON | CATLIN 1 “No. I don’t think the two issues have “Maybe. It’s more an issue a lot to do with eachother. The hack- of competition than the 2 ing scandal shouldn’t impact on the phone hacking. But they’re deal. It’s more of a competition issue. not helping themselves. I would expect it to go through with- They’re proving that they l UNDER PRESSURE 3 out too many problems.” can’t act responsibly.” l Rupert Murdoch, CEO of News Corp, gave SIMON CLARKE | PARABIS GROUP his public back- 4 ing to Rebekah Brooks yesterday “No. It’s not clear if the allegations are true, so there shouldn’t be an impact on the deal right now. If l James 5 they are correct, then perhaps the merger should be looked at. But we need to wait for the outcome Murdoch, deputy of the investigation.” COO of News Corp, faced calls to resign from 6 MPs l Rebekah Brooks, News 7 International CEO, was editor of the News of the World in 2002 8 l Andy Coulson, former editor of the News of the World, was also 9 David Cameron’s top spin doctor * Mumsnet refused to accept adverts from Sky but doesn’t advertise in the News of the World

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+&)!**,''#!/+  !+/&&%&% 8 EDITED BY CITYA.M. 7 JULY 2011 HARRIET DENNYS Got A Story? Email [email protected] The Capitalist Follow The Capitalist on Twitter: @citycapitalist

It’s a case of HSBC PLAYS musical MUSICAL chairs in the top tiers at CHAIRS IN HSBC, as the M&A ROLES bank moves to improve its All at sea: the annual Stock Exchange Regatta CHANGE at the top at HSBC. The Capitalist has learned that rising star Maged Latif, reputation for treated as a completely separate issue who joined the bank from Goldman Sachs from Rupert Murdoch’s bid to own BSkyB two years ago, has been fast-tracked from M&A work outright. “The Sky bid is about plurality; deputy head of M&A to co-head of global the phone hacking saga is about morali- financial institutions group (FIG) advisory. ty,” said the source, providing The Latif, who made his mark advising the Investing in the bank: HSBC has announced a top-level internal reshuffle to boost its M&A credentials Capitalist’s catchphrase of the day. It has a government on taking Northern Rock nice, er, ring to it. into public ownership while at Goldman, tion of John Studzinski, who moved on mous and very forthright” response to the will now focus on even larger and more from HSBC to Blackstone, and Robin Milly Dowler phone hacking scandal? complex M&A deals, working alongside Osmond, who left to work at JP Morgan. A lot worse than unwashed nappies, TRADE WINDS fellow co-head of global FIG advisory “Having failed to make their high-pro- judging by Mumsnet postings that the THE USUAL suspects were out in front Andrew Zeissink, who retains his role as file investment banking acquisitions stay News of the World is “despicable” and in the Stock Exchange Sailing Regatta leader of HSBC’s FIG practice in Asia. the trip in recent years, perhaps Latif is “rotten to the core”. “Phone hacking on the Isle of Wight – namely Magnus The Capitalist hears the top-level the key to HSBC becoming a global invest- wasn’t a big discussion thread on the Wheatley from Charles Stanley and his reshuffle – which also sees Alistair Hill ment banking force,” speculated the mole. site before,” said chief exec Justine crew, who looked set fair to win the move back to London from Europe to Roberts, who yesterday turned down annual Kemyss Betty Trophy. become managing director, group M&A £30,000 of advertising money from sis- But just 100 yards from the finish, the – is part of the bank’s strategy to boost DOORSTEPPING ter Murdoch firm Sky to placate her wind shut down to leave Wheatley floun- its traditionally weaker reputation for WHEN an advertising firm displeased irate members. “But messing with dering in third place, after Sean M&A work by engendering a new spirit Mumsnet with its “Career Women Make the emotions of bereaved parents is Mylchreest from the Charles Stanley Isle of co-operation between its M&A and Bad Mothers” ad, the parenting site’s retri- beyond the pale.” of Wight office sailed past to finish first, global banking and markets teams. bution was deadly, with Mumsnetters followed by Tom Taylor-Jones of Investec Of course, the promotion also provides threatening to leave dirty nappies outside Wealth. Meanwhile, the trophy for the an incentive for Latif – the banker the boss of the firm’s office. RING TONE biggest misdemeanour of the day went to described as “a high-quality financial So what can News International chief ON THE subject of the News of the Tony Dorkins, a crew member of JM Finn’s engineer” by an admirer – to enjoy a long executive Rebekah Brooks (right) expect to World, one City observer has come up David Higham, who abandoned ship early career at the bank, which has hardly find on her doorstep following the parent- with a neat catchphrase to explain why to mix business and pleasure by visiting attracted star dealmakers since the defec- ing site’s members “completely unani- the phone hacking scandal should be clients elsewhere on the island… CITYA.M. 7 JULY 2011 News 9

Inmarsat’s current chairman and chief executive Andrew Sukawaty Numis relieved by will become execu- tive chairman next year. Rock Well result

▲ LITIGATION had been threatened against it. The claim, brought against Numis BY DAVID HELLIER by Fidelity, St Peter Port Capital and a INDEPENDENT bank and broker number of other institutions includ- Numis Securities yesterday settled a ing the hedge fund CQS, was original- long-running legal case relating to a ly for $95m (£59.4m). private share placing it led in 2007. Numis and Fidelity said they were Numis said it had paid out £5m pleased to put an end to this distract- without admitting liability in rela- ing litigation and looked forward to a tion to a decision made by its client continuing and mutually beneficial Rock Well Petroleum not to refer in commercial relationship. CQS also placing documents to a law suit that agreed to the statement. Inmarsat to split top roles at end of year ▲ TELECOMS Partners. It had supported Sukawaty BY ALISON LOCK holding both roles and in 2009 asked him to commit to staying in the com- SATELLITE owner and operator bined position until at least 2012. Inmarsat announced a long-expected Harbinger’s stance reflects US cor- restructuring of its top team to split porate governance as 60 per cent of the chief executive and chairman US listed companies still combine the roles yesterday. two leadership roles. In contrast, just Rupert Pearce, Inmarsat’s senior three per cent of UK listed firms com- vice president of its Inmarsat bine the roles as it contravenes the Enterprises business, will become its Corporate Governance Code. new group chief executive from Sukawaty led Inmarsat through its January 2012. He replaces Andrew 2005 listing and takeover of distributor Sukawaty, who has led FTSE 350- Stratos in 2009. Pearce has spent six ranked Inmarsat as chairman since years with Inmarsat and also played a 2003 and been joint chair and chief critical role in the Stratos deal. executive since March 2004. ANALYSIS l Inmarsat 562.00 Sukawaty will become executive 565.00 6 Jul chairman and remain in post for at p least two years, the company said. Sukawaty said Pearce was 560.00 “extremely well prepared to head our experienced management team and drive the company forward into its 555.00 next stage of growth”. The news follows the sale of about 550.00 30 per cent of Inmarsat held by US private equity firm Harbinger Capital 30 Jun 1 Jul 4 Jul 5 Jul 6 Jul

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6 Kier Group Colin Busby Split in May 2011 Extra Urban 40.4 – 67.3 (7.0 – 4.2), Combined 31.0 – 64.2 (9.1 – 4.4). CO2 emissions 215 - 101g/km. Models shown Jazz 1.2 i-VTEC S Manual, CR-V 2.0 i-VTEC EX Manual and Civic 1.4 Type S Manual. Offers valid on new retail models ordered from 1 July to 30 September 2011 and registered on or before 31 December 2011. Offers applicable at participating Dealers and are at the Promoter’s absolute discretion. Subject to model, colour and stock availability. Honda Hire Purchase (HP): Indemnities may be required in certain circumstances. Finance is only available to persons aged 18 or over, subject to status. All fi gures are correct at time of publication but may be subject to change. Promoter is Honda (UK), 470 London Road, Slough, Berkshire SL3 8QY. Servicing: Four years complimentary servicing or 50,000 miles, whichever comes fi rst, and includes 7 Marks & Spencer Sir Stuart Rose Split in May 2010 a maximum of four services. Complimentary servicing covers the manufacturer’s scheduled servicing only. Roadside Assistance: Covers the vehicle and authorised drivers for four years emergency breakdown, subject to the vehicle being maintained in accordance with the manufacturer’s servicing schedule. 10 News CITYA.M. 7 JULY 2011 Allen & Overy posts rises Latest WPP buy sees group snap in its profits and revenues up India ad firm

▲ local firm Daniel Ginting. LEGAL SERVICES ▲ “This has been a year of long term MEDIA ALLEN & Overy was the latest magic investment in our business,” said circle law firm to release its finan- managing partner Wim Dejonghe ADVERTISING giant WPP yesterday cial results yesterday, posting a seven (pictured). “Despite tough economic announced the latest in a string of per cent rise in revenues alongside a conditions, we have continued to acquisitions, spending some of its six per cent hike in profits. expand into growth markets.” £200m war chest on a majority stake Turnover at the firm, which has Last week the firm opened a tem- in Indian agency Mindset 487 equity partners across 37 offices, porary office in Belfast, ahead of the Advertising. rose to £1.12bn in the year to 30 full launch of its Mindset’s client roster includes April, climbing from £1.05bn the Northern Pepsi, Airtel and ADP, and the compa- previous financial year. Ireland sup- ny posted revenues of £719,000 for Profits before tax hit £431.2m, port later last year, with assets of £606,319. with profits per equity partner – this year. The acquisition means that WPP often used as measure of a law firm’s The now owns five of India’s top 10 adver- success – remaining flat at £1.1m. centre tising agencies, and employs around However, this was largely due to will house 9,000 people in the company. an increase in partner headcount at a total of Shares in WPP, led by Martin the firm over the year, with the 110 support Sorrell, fell more than three per cent number of full partners up 12 per staff, of during trading yesterday, as investors cent from 355 to 398. which 40 are reacted to its latest splurge on top of Revenues generated by the firm’s already in a note from Morgan Stanley, which offices outside the UK last year stood place. downgraded the group from over- at 60 per cent, up from 58 per cent in weight to equal weight. 2009-10. Overseas revenues have The broker says it sees tough com- been boosted in the last 12 months paratives as we move into the second- by a new office in Jakarta, which half of 2011 and WPP’s ad agency opened last year in a link up with peers have already begun cutting WPP boss Martin Sorrell has been on the acquisition trail again Picture: REUTERS global ad forecasts. Asian growth helps @ Robert Walters gain

▲ RECRUITMENT Robert Walters. “This has been Just a quarter of the group’s rev- BY ELIZABETH FOURNIER largely driven by our international enue now comes from its UK mar- businesses, which now represent ket, with a further 20 per cent BUSINESS recruitment group 75 per cent of the group’s net fee from mainland Europe. Robert Walters said yesterday it income.” had seen solid growth in the sec- Walters, who founded the com- ANALYSIS l Robert Walters ond quarter, and announced plans pany in 1985, also said that he was 320 p for further expansion into fast- planning to open new offices in 313.00 growing markets across Asia. Indonesia, Taiwan and Germany 6 Jul Overall net fee income at the over the next six months, to reflect 310 group rose 23 per cent year on year, solid growth in those regions. with 28 per cent growth in Asia in Asia-Pacific, including the com- the three months to 30 June. pany’s recently opened offices in 300 “The group performed well Nanjing and Ho Chi Minh City, across all regions during the sec- now accounts for more than half of ond quarter,” said chief executive Robert Walters’ total income. 30 Jun 1 Jul 4 Jul 5 Jul 6 Jul UK operations feel the drain

NET fee income growth of 21 per cent may be good for Robert Walters’ bottom line, but what it reveals about the UK is much more worrying. For months commentators have been talking about a flight of talent from London heading eastwards, and income growth of 28 per cent for Robert Walters in Asia compared to just five per cent in the UK will do nothing to allay fears. All eyes will be on an update from rival Hays this morning to see if its numbers back up the trends, but with brokers already call- ing its overseas business undervalued, recruiters are likely to focus their efforts – and their capital – elsewhere.

MORE NEWS ONLINE BOTTOMLINE www.cityam.com Analysis by Elizabeth Fournier CitiFX® Pro Professionals Trade FX with Citi www.citifxpro.com | 0800 279 4772 | [email protected]

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Sir Tom Hunter, USC and Cruise rebuffs bid chair and Sports Direct’s new Premium and from US rival Lifestyle adviser

▲ HEALTHCARE “The latter could provide a serious BY KASMIRA JEFFORD competitive threat to Alere’s Cholestech franchise in the US,” said SHARES in Axis-Shield jumped to a 10- Chris Glasper, an analyst at Brewin Booker, led by Charles Wilson, is performing well compared with others in the sector year high yesterday after the company Dolphin. rebuffed a £230m bid from its bigger Shares in Axis-Shield were up 49 per US rival Alere. cent to close at 500p yesterday, fuelled The Dundee-based firm, which in part by market expectations of a Booker rises above retail makes medical diagnostics kit, said counter bid from other rivals includ- that its board had unanimously reject- ing Siemens or Beckman Coulter. ed the proposal because it “fundamen- A spokesperson for Alere said the tally undervalued the company and its firm, which has made 60 acquisitions gloom with jump in sales future prospects”. since 2004, was “disappointed” but did The response came after Alere made not say whether the firm would recon- its indicative 450p cash offer public sider its offer. Premium and Lifestyle division yesterday in an attempt to open talks ▲ RETAIL Booker is the UK’s largest food sup- with the British firm. ANALYSIS l Axis-Shield plier to the cinema sector and also BY JOHN DUNNE ANALYSIS l Sport Direct Analysts said that while the offer 500 p supplies prisons, Marks & Spencer 255 p represented a 37 per cent premium to 475 500.00 BRITAIN’S biggest cash and carry and over 300,000 smaller customers, 250.90 the Axis-Shield’s Tuesday closing price, 450 6 Jul wholesaler has defied the retail sector including pubs, restaurants and 6 Jul 245 it did not factor in the value new devel- 425 gloom with a sales lift. catering outlets. opments, saying its “strategic value” 400 Booker, which runs more than 170 “After a good start we anticipate was at stake. branches in the UK, saw like-for-like that Booker is on course to meet 235 The company, created through the 375 sales rise by 7.4 per cent in the 12 expectations for the year ending merger of Shield Diagnostics and 350 weeks to 17 June. March 30 2012,” said chief executive Norway’s Axis Group in 1999, is devel- 325 Non-tobacco sales were up 5.7 per Charles Wilson. 225 oping a new lipids panel to test for cent and tobacco sales up 10.1 per In May, the firm posted a 25 per- both cholesterol levels and diabetes. 30 Jun 1 Jul 4 Jul 5 Jul 6 Jul cent, the firm said. cent rise in annual profit. 30 Jun 1 Jul 4 Jul 5 Jul 6 Jul

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Real thinking - Real trading CITYA.M. 7 JULY 2011 News 15 Aston Martin US buy boosts Balfour orders Kraft adviser mulls HK float to quit Lazard

▲ INDUSTRIALS The UK construction market is fac- in the business, including acquisi- ▲ ▲ ing challenging times ahead as the tions, and fluctuations in working BY HARRY BANKS BANKING government reins in spending on capital. BANKING ASTON Martin, the iconic car maker BALFOUR Beatty, Britain’s largest public buildings, schools, hospitals Balfour announced last week the A KEY financial adviser to US food famous for supplying James Bond infrastructure contractor, said it will and infrastructure, against the acquisition of US firm Howard S giant Kraft in its takeover of British with his wheels, is mulling a share make further selective acquisitions wider backdrop of a weak economy Wright for $93m (£58.1m), with the chocolate maker Cadbury is to step issue in Hong Kong, according to after recently snapping up a US peer, dragging on commercial con- contractor primarily operating down from his position at invest- chief executive Ulrich Bez. a move that it said will lift its order struction activity. within the western United ment bank Lazard. He said there were no immediate book. Balfour -- led by Ian Tyler States. This follows on from its Peter Kiernan, a managing direc- plans to float and that advisers have Balfour, which operates in 80 (pictured) -- is taking advan- larger acquisition in the US in tor in the bank’s mergers and acqui- not yet been appointed. countries and offers a range of infra- tage of its strong balance 2009, when it bolstered its pro- sitions team in London, is He also said the firm is ready to structure services, said in a short sheet and global presence to fessional services capacity in understood to be tendering his res- launch a sales arm in China in a bid trading statement yesterday that the offset gloom at home. buying Parsons Brinckerhoff. ignation. to cash in on the roaring demand outlook for infrastructure markets It said that its Shares in Balfour closed flat at He is expected to leave later this for luxury goods. remains positive in the medium to net cash posi- 316.2p, having shed 13 per year, after seven years with the Last month Aston Martin raised long-term. tion will be cent since March when bank. His departure comes one year £304m through a bond issue, in However the short-term outlook reduced as a shares hit a near three-year after he was forced to withdraw his which it was assigned a “junk” rat- for construction is less bright, partic- result of high, and valuing the candidacy for the post of director ing by agencies. ularly in Balfour’s domestic market. investment group at £2.16bn. general of the Takeover Panel. AVIATION NEWS AirAsia plans boost Ticket sales CAA probes to Airbus plane deal enjoy jump

Heathrow’s ▲ AVIATION aggressive plans to grow in new at easyJet BY KASMIRA JEFFORD regions including the Philippines and Vietnam as more people in the

AIRASIA is understood to be close to region demand cheaper flights. ▲ buying an extra 100 A320neo jets The charismatic entrepreneur TRANSPORT from Airbus, in a deal that would has been called Malaysia’s answer charge rise make the budget airline one of the Sir Stelios Haji-Ioannou. In 2007, the NO-FRILLS airline easyJet yesterday world’s largest carriers. trained accountant launched reported a 9.1 per cent rise in passen- Last month the Malaysian air- AirAsia X, a budget long-haul air- ger numbers in June compared with line’s owner, Tony Fernandes, line, followed by last year, in line with its rivals, as its ▲ AVIATION ing charges solely on noise values. stormed into the Paris Air show Tune Hotels, an expansion plan takes flight. The CAA said it will now review ordering a record-breaking 200 Asian no-frills In the 12 months to June, easyJet BY KASMIRA JEFFORD Heathrow’s charging structure and revamped A320 planes for £10.5bn - chain. Fernandes sold 53.36m seats on its flights – a BRITAIN’S airport regulator has has invited representations from the largest number of jets ever also owns the jump of 12 per cent on last year. launched a full investigation into interested parties by September. bought in one deal. Formula One The rise builds on a seven per cent whether Heathrow’s passenger The airline, which welcomed the Fernandes is not short of ambi- team Lotus. rise in passenger numbers during charges have unfairly impacted short- CAA’s response said: “BMI maintains tion for the airline, which he res- 2010, as the firm expands its reach haul carriers, following a complaint that BAA’s increase in domestic cued from bankruptcy in 2001 when across European flight routes. by airline British Midland charges at London Heathrow will he bought it from the Malaysian The firm’s rapid growth plans have International. unfairly and unreasonably discrimi- government for a token of 25p. sparked tension with the airline’s The Civil Aviation Authority said nate against domestic passengers.” Starting with just two Boeing founder and ongoing shareholder yesterday that it would open an jets and $11m in debt, Stelios Haji-Ioannou, who has com- extended inquiry into Heathrow’s ANALYSIS l Lufthansa 15.37 Fernandes has grown plained to the board that the plane decision last year to raise the rate for 15.40 6 Jul AsiaAsia’s fleet to 93 planes purchases and route expansions are each domestic passenger flying out of € which fly to 63 destina- unsustainable. the airport by 50 per cent from April. tions, driving the rapid EasyJet also announced yesterday The move prompted BMI -- which is 15.20 expansion of budget, that its load factor – a measure of the owned by Lufthansa -- to launch a for- short-haul flights in the percentage of seats sold per flight mal complaint in March over what it Asia. – has risen 1.1 percentage point to 88.3 called an “outrageous” rise in 15.00 In May, Fernandes per cent in June compared with last charges, announced that he year. BMI said the fees unfairly discrimi- 15.00 would boost the firm’s Airbus Ryanair and BA parent company nated by equalising domestic and EU fleet five-fold to 500, with IAG have this week also reported a rise passenger charges, and basing land- 30 Jun 1 Jul 4 Jul 5 Jul 6 Jul TONY FERNANDES in traffic compared with last year. Moulton snaps up office supplies from ADVISERS: LAZARD this time in the software sector. RICHARD SHAW He was also on the team which was responsible for a £3bn agreement in DS Smith as part of £200m disposal LAZARD which Angel Trains was bought by a group led by Deutsche Bank and includ- ed AMP Capital. In 2007 he saw through the sale of ▲ CONSUMER a string of investments by Better cant gain on disposal -- in excess of publicly listed Foseco to the Cookson Capital, which has recently ploughed £60m”, said chief executive Miles Group for £592m, while he also BY JOHN DUNNE & MARION DAKERS money into Reader’s Digest, collapsed Roberts. worked on a deal in which Nippon VENTURE capitalist John Moulton is housing repair firm Connaught and Analysts welcomed the disposal Lazard’s Richard Shaw led the team Sheet glass bought well known UK splashing out £40m on parts of DS software firm Calyx. yesterday. “Debt is not a problem for which advised DS Smith on its sale of company Pilkington. Smith’s stationery and office supplies DS Smith said it was offloading the them [DS Smith] in any sense whatso- Spicer to Unipapel. Shaw is respected for his dealmak- business after the firm sold the rest to firm so it could concentrate on its ever, so it just gives them the opportu- He is an experienced mergers and ing and has been locked in major proj- Spanish firm Unipapel. packaging business. nity of redeploying capital,” Oriel acquisitions adviser who has worked on ects with Lazard, who are one of the Moulton’s Better Capital said its The firm reported 2011 sales of Securities’ Forsythe said. “It is defi- a number of prominent deals for world’s most prominent advisers. purchase of the UK and Irish business £2.47bn, of which £715.2m came in nitely a good move. They’re clearly dis- Lazard, with industrials as his specialist Analysts at Evolution Securities sug- will go through once Unipapel buys from the Spicers unit. posing off an asset they have signalled area. gested that Lazard had cut a good deal up the other parts of DS Smith’s “Packaging will go from represent- doesn’t provide anything to the rest of Before the DS Smith deal he worked for DS Smith as a £150m price tag had Spicers arm for around £200m. ing 80 per cent of our profits to 100 the group.” on a £59m sale of Morse to 2e2 group, been estimated. The Spicers purchase is the latest in per cent. There will be quite a signifi- Lazard advised DS Smith. 16 News CITYA.M. 7 JULY 2011 Investment bank fees boom London IPO market is hit

▲ by Greek default worries CAPITAL MARKETS $17.4bn, an increase of 19.1 per cent deals increased by 26.2 per cent. Fees on the first half of 2010. taken from Japanese companies fell BY RICHARD PARTINGTON US private equity firms were 23 per cent, after the devastating INVESTMENT banks have reaped a amongst the biggest fee payers for earthquake and tsunami hit appetite ▲ CAPITAL MARKETS European new company offers. massive $48.9bn (£30.5bn) in fees in M&A work, as they exited investments for transactions. The two floats raised more than the first six months of this year, in the snapped up before the recession. Wall Street banking giant JP FEARS over a Greek debt default and €8bn (£7.1bn) of the €13.4bn raised in largest opening half since before the Investment banking activity across Morgan topped the global league the financial stability of the Eurozone Europe during the second during of financial crisis. the financial, energy and power sec- table for fees taken in the first of 2011, have hit investor appetite for new com- this year, according to PwC. Fuelled by a return to dealmaking tors dominated the global fee pool, reaping $3.4bn in payments, or 6.9 pany share offers in London, a new Of the 134 IPOs in the quarter, the by companies worldwide, fees taken accounting for 43 per cent of all pay- per cent of overall “wallet share”. report out today from five largest deals generated more than by investment banks in the first half ments. Morgan Stanley booked $27bn in PricewaterhouseCoopers (PwC) finds. €9bn of the total. of 2011 jumped 23 per cent on the Fees taken from European and investment banking fees, an increase IPO delays and withdrawals have PwC head of capital markets same period a year earlier. American deals increased by 26.4 per of 48.9 per cent on the same period a plagued the market, with the super- Richard Weaver said: “Turbulent mar- Fees taken for mergers and acquisi- cent and 26.9 per cent respectively, year earlier, the largest gain among all floats of Glencore and Vallares helping ket conditions have badly affected the tions (M&A) advisory work totalled while fees taken from Asia Pacific banks in the top 25. to materially boost the performance of IPO market across Europe.”

ECONOMICS

CITY A.M. | SHADOW MPC REMAINS DIVIDED OVER INTEREST RATES House prices ALLISTER HEATH | CITY A.M. “Quarter per cent rise. With CPI inflation stubbornly sticking to 4.5 per cent and likely to rise further, at least a small move towards normalisation is warranted. The economy is sluggish, but still growing.” SIMON WARD | HENDERSON bounce back, “Raise to one per cent. High inflation threatens to become entrenched. Slow broad money expansion is no excuse for inaction because velocity is trending higher in response to increasingly-negative real interest rates.” GEORGE BUCKLEY | DEUTSCHE BANK “Raise by 0.25 per cent. Despite uncertainties surrounding the recovery, output continues to grow and infla- Halifax says tion remains elevated. This suggests that interest rates are too low at their current stimulatory levels.”

▲ GRAEME LEACH | INSTITUTE OF DIRECTORS HOUSING below their rate at the same time last “Hold the base rate. Money supply growth is near zero, real incomes are falling, the savings ratio is already BY JULIAN HARRIS year, when an average house cost low, the Spending Review is kicking in and the output gap is widening. End of story.” £165,686. BRITAIN’S housing market slump A still-sluggish market continues to may have turned a corner according drive demand towards the rental VICKY REDWOOD | CAPITAL ECONOMICS to a leading house price survey market, with the costs of rent in released yesterday. prime London areas up 10 per cent in “With the economic recovery still struggling, I would leave interest rates on hold. Indeed, if things carry on The average house price rose by 1.2 the past year, according to property like this, more quantitative easing will start to look necessary.” per cent to £163,049 in June -- “broad- adviser Savills. ly unchanged from that in Areas that attract City workers are TREVOR WILLIAMS | LLOYDS TSB December”, according to the Halifax. seeing some of the sharpest spikes in On the less volatile three-month rent, Savills said yesterday. “Weak data suggest that the economy cannot yet withstand a rate hike. Nevertheless, as soon as it looks like measure, prices were down just 0.5 “In the East of City rents rose by it can, a rate rise will be necessary to ensure that inflationary expectations remain anchored.” per cent – the slimmest quarterly 11.6 per cent in the past year, and by decline since the same time last year. two per cent in the past three HOWARD ARCHER | IHS GLOBAL INSIGHT “Low interest rates, an increase in months,” it said. “Islington and the number of people in employment Hampstead have risen 11.3 per cent “No change to rates. Current sluggish economic activity and major concerns over the growth outlook justify and some tightening in market condi- over the past 12 months, though 0.5 per cent rates but I’m not convinced of the case for more QE, particularly given ongoing inflation risks.” tions earlier in the year are likely to their varied client base and more lim- have been the main factors behind ited stock levels mean that rents are the recent improvement in price now 15.2 per cent above peak.” JAMIE DANNHAUSER | LOMBARD STREET RESEARCH trends,” said Halifax economist A slow market in housing sales has “Indicators of global activity have turned down sharply. With the spectre of further contagion in European Martin Ellis. also resulted in more owners working financial markets, the MPC should tread very carefully. No change in Bank Rate is warranted.” Ellis believes that a gradually grow- to improve their existing homes, ing economy and more monetary eas- rather than seeking to upgrade, the ing “should help to support broad Royal Institution of Chartered VICKY PRYCE | FTI CONSULTING stability in the market over the com- Surveyors said yesterday. Adding bed- “Hold. Nothing has changed to increase inflation prospects. Indeed there’s more chance of another dose of ing months.” rooms is the most valuable addition QE than a hike at this point with negative pointers for UK domestic indicators,.” Yet prices remain 3.5 per cent to a home, surveyors said. Olympics and Royal Wedding prompt a NEWS | IN BRIEF China tightens monetary policy said that the net rate of return for pri- China’s central bank increased interest vate non-financial companies rose to 12.7 surprise spike in consumer spending rates for the third time this year yester- per cent from 12.5 per cent in the last day, making clear that taming inflation is three months of 2010. This was driven by a top priority even as the economy slows a rise in the profits of oil and gas compa- gently. Benchmark one-year lending rates nies operating on the UK Continental ▲ RETAIL spending on National rose sharply – up by 4.3 per cent. will be raised 0.25 per cent to 6.56 per Shelf, whose profitability increased to Savings certificates – “June’s figures suggest a more cent, and benchmark one-year deposit 47.6 per cent from 44.4 per cent. BY JULIAN HARRIS spending was up just 1.5 positive story for the high street rates will be raised 0.25 per cent to 3.5 CONSUMER spending rose strongly in per cent on last year. as consumers seem to have per cent. “The interest rate rise is within Services slowdown in the US the second quarter of the year accord- The Royal Wedding, returned to their more ‘usual’ our expectation, which shows the CPI in The pace of growth in America’s service ing to data released by Visa yesterday, other bank holidays and spending habits,” it said. June could be really high,” said Duan sector remained sluggish in June and yet one-off factors such as demand for notably sunny weather However, less bullish Jihua of Sealand Securities in Shanghai. new orders fell, but employment held Olympic Games tickets may have dis- in April also boosted consumer news came steady last month, according to an indus- torted the figures. spending after a slug- from the Society of Profitability boost for UK firms try report released yesterday. The Shoppers splashed 4.4 per cent more gish first quarter, the Motor Manufacturers British non-financial companies’ prof- Institute for Supply Management stated than a year earlier, and 3.1 per cent report from Visa said. yesterday, which report- itability rose to its highest since the that its services index has fallen from more than in the first three months of Yet in June, with ed a 6.2 per cent annu- fourth quarter of 2008 in the first three 54.6 in May to 53.3 last month, where a this year. However, without two volatile volatile factors largely alised drop in new car months of 2011, official data showed yes- reading above 50 indicates an expansion factors – Olympic tickets and May’s absent, spending also registrations for June. terday. The Office for National Statistics in the sector. CITYA.M. 7 JULY 2011 News 17

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

from Morgan Stanley as a director and advisory firm has appointed Simon tions business. Machon joins after Brooks Macdonald Asset Management head of EMEA stock loan trading; and Davies to its structuring and advisory spending seven years at AonHewitt as The independent private client investment Martin Donnelly and Simon Key join business. Simon joins from investment chief commercial officer for EMEA. manager with £2.8bn of funds under manage- from Credit Suisse as a director and and advisory firm Blackstone, where Towers Watson has also combined its ment has appointed Richard Harley as an European head of hedge fund consult- he was a managing director. three investment research teams into intermediary sales manager. Harley previously ing, and a director in the synthetic one, to be led by Craig Baker. worked for Hornbuckle Mitchell, where he spe- equity sales team respectively. KPMG cialised in SIPP, SSAS and retirement options; Neil D Miller has joined as KPMG as Deloitte prior to that, he worked for Friends Provident Bluefin global head of Islamic finance. Miller The business advisory firm has as an adviser and AXA Sun Life as a broker Bluefin Corporate Consulting has joins from the law firm Norton Rose, appointed Simon Owen as managing consultant. Harley will be responsible for appointed Federica Gazzelloni as an where he led the company’s global director of its EMEA enterprise risk developing professional adviser and intermedi- actuarial analyst in the Bluefin Islamic finance practice. services practice, succeeding Chris ary relationships throughout the Midlands. Corporate actuarial team. Gazzelloni Verdonck of Deloitte Belgium. Owen joins from Mandeville Group, where he Towers Watson takes on the new position in addition Bank of America Merrill Lynch business. Daniel Katz joins from held the same position. The professional services firm has to his current roles as lead enterprise Bank of America Merrill Lynch has Nomura as managing director and appointed John Machon in the new risk services partner in the UK and made four senior hires in its EMEA head of EMEA stock loan and struc- Cairn Capital role of head of business development deputy managing director for global markets financing & futures tured marketing; Ross McDougall joins The credit asset management and for the firm’s EMEA retirement solu- Deloitte’s global practice. To appear in CITYMOVES please email your career +44 (0)20 7092 0053 updates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com

BEST OF THE BROKERS To appear in Best of the Brokers email your research to [email protected]

ANALYSIS l Associated British Foods 1,081.00 ANALYSIS l Ocado 196.90 ANALYSIS l Experian 1,100 p 6 Jul 240 p 6 Jul 820 p 823.00 810 6 Jul 1,060 220 800 790 200 780 1,020 770 180 760 980 750 160 740 11 Apr 5 May 25 May 15 Jun 5 Jul 11 Apr 5 May 25 May 15 Jun 5 Jul 11 Apr 5 May 25 May 15 Jun 5 Jul ASSOCIATED BRITISH FOODS OCADO EXPERIAN Deutsche Bank rates the food-to-fashion conglomerate as a “hold” and raises Goldman Sachs retains its “buy” rating on the online shopping service with a Citi upgrades the credit information group from “hold” to “buy” and lifts its tar- its target price from 950p to 1,050p, seeing extremely favourable dynamics target price of 297p, but updates estimates after the recent in-line first half get price from £8.50 to £9.40, taking advantage of market uncertainty around in European sugar as likely to keep prices high and generate a major windfall results. The broker sees full-year sales growth of 23 per cent to £633m in 2011, the company’s Brazil outlook. The broker’s upgrade is based on an improved for the group. The broker upgrades its 2011-12 earnings per share forecast by and updates its capital expenditure to £181m from £153m. Forecasts for earn- understanding of Experian’s long-term Brazilian growth opportunities coupled £70m or around eight per cent as a result, with risk remaining to the upside. ings before tax fall by eight per cent and 22 per cent in 2012 and 2013, reflect- with eight per cent earnings upgrades. Citi says short-term risks have been over- However, high street woes could impact its Primark and grocery businesses. ing higher interest costs and depreciation from higher capex assumptions. played, and highlights Brazil’s underdeveloped mortgage market. FTSE breaks eight day streak Rally in transport on jitters over China and Euro stocks lifts hopes

Miners, however, were strewn ing group by revenue, shed 3.1 per tained its highs, “that would suggest across the list of FTSE fallers after cent as Morgan Stanley cut its rating. we’re working out of this current soft THELONDON China said it would raise benchmark On the upside, Serco rose 3.9 per THENEW YORK patch and into a new leg of economic interest rates by 25 basis points from cent after BofA-Merrill Lynch raised growth.” today. its earnings forecasts and said its The S&P 500 has been fluctuating in REPORT The third rate rise this year left growth potential was being underval- REPORT a range from about 1,250 to 1,350 for investors wondering if the country’s ued by the market. the last several months, with flare-ups HE FTSE 100’s eight-day winning government may be tightening too Experian added 1.5 per cent as in the Eurozone debt crisis often serv- streak came to a halt yesterday quickly amid signs growth is already Citigroup upgraded its rating on the RANSPORTATION stocks were ing as a catalyst for profit-taking in a as worries over debt contagion starting to slow. credit checking agency and raised its among the standouts in another short-term trader’s market. Tin Europe and the demand out- Heavyweight Vodafone shed 0.9 per forecasts, while assuaging investor flat session for US equities yester- The Dow Jones industrial average look in China hit banking and com- cent on European Union plans to concerns over its Brazilian business Tday, and the sector’s rally could was up 56.15 points, or 0.45 per cent, at modity stocks. make it easier for retailers such as Serasa. be cause for optimism ahead. 12,626.02. The Standard & Poor’s 500 The top share index closed 21.11 Tesco to compete with dedicated tele- Smith & Nephew gained 1.7 per However, the Nasdaq rose for its sev- Index was up 1.34 points, or 0.10 per points or 0.4 per cent lower at coms network operators. cent, echoing a rise in US woundcare enth straight day, extending its rally to cent, at 1,339.22. The Nasdaq 6,002.92, having risen more than six The move comes as the EU propos- rival Kinetic Concepts, with traders 6.8 per cent. Composite Index was up 8.25 points, per cent in the previous eight ses- es a cap on regulated wholesale prices citing vague private equity bid talk as The Dow Jones Transportation or 0.29 per cent, at 2,834.02. sions – its longest winning run in for roaming services that will fall a catalyst. Average rose 1.2 per cent and hit a new Moody’s downgrade of Portugal’s almost two years. drastically over a three-year period. Outside the top flight, property closing high at 5,566.07. The gains credit rating on Tuesday to “junk” cast Bill McNamara, technical analyst at BP slid 0.9 per cent, leading inte- firm and takeover target DTZ fell were led by Con-Way Inc, which added new doubt on European efforts to res- Charles Stanley, said the FTSE was grated oil stocks lower. Traders cited almost seven per cent after a disap- 5.7 per cent to $41.87 after the US cue distressed Eurozone states without probably due a minor pullback, concerns the oil major may lower its pointing trading update. trucking company said it was restoring debt restructuring. although that did not necessarily earnings forecasts. Axis-Shield, a healthcare products some employee benefits because the Reflecting concerns about the euro- mean the rally was over, especially BP is scheduled to publish its group, was the top riser in the FTSE economy had improved. zone debt crisis, the iShares MSCI Italy with the FTSE holding above 5,950. results on 26 July. indices after soaring 49 per cent on Transports are considered a barome- index fell 3.3 per cent and the iShares Royal Bank of Scotland and BSkyB was down 2.1 per cent with the back of a takeover offer. ter for economic activity because ship- MSCI Spain index lost 2.2 per cent. Barclays topped the list of blue chip traders pointing to concerns News ping activity signals demand for Banks were among the worst per- fallers and a weak banking sector, Corp’s deal for the satellite broadcast- ANALYSIS l FTSE goods. FedEx Corp advanced 1.3 per formers on concerns about their expo- down 3.4 and 3.8 per cent respective- er could be delayed, as new phone- 6,100 6002.92 cent to $96.78 while Union Pacific sure to Eurozone debt and sluggish US ly, after ratings agency Moody’s cut hacking allegations pile pressure on p 6 Jul Corp hit an all-time high, rising 0.8 per growth. The KBW Bank Index fell 0.7 Portugal’s debt to junk status. Rupert Murdoch’s global media 6,000 cent to $106.59. per cent, with Bank of America Corp, “Today’s meeting of French and empire. “Strength in transportation stocks the Dow’s biggest loser, down 2.4 per German banks in Paris is unlikely to Among the smaller cap companies, 5,900 goes a long way to signaling that man- cent at $10.74. Gains were also limited assuage market concerns of a further media rival Trinity Mirror soared 16.6 ufacturing will continue to be robust by a softer-than-expected survey on US ratings downgrade on other peripher- per cent as analysts speculated that 5,800 and that the cyclical nature of the services sector growth, which slowed al nations amidst concern about how the firm could be the main benefici- recovery is picking up steam,” said slightly in June. The data gave debt rollovers might be treated by the ary of any advertising boycott against 5,700 Roger Volz, director of cash equities at investors little reason to make big bets ratings companies,” a London-based News Corp brands. BGC Financial in New York. after last week’s rally drove the S&P trader said. WPP, the world’s largest advertis- 11 Apr 5 May 25 May 15 Jun 5 Jul Volz added that if the sector main- 500 up 5.6 per cent. 18 Wealth Management CITYA.M. 7 JULY 2011 Three steps to get cover from summer Don’t get gored by not having a policy for hazardous activities Picture: GETTY holiday blues

Travel insurance is a must for every journey, but you should ensure you have enough coverage, says Philip Salter

1GET COVERAGE 3CHECK THE SMALL PRINT “It is essential that holidaymakers Atkinson notes it’s worth remember- have adequate travel insurance in ing that you might not be covered for place before jetting off on their holi- some extreme activities on holiday, days,” says Bob Atkinson of moneysu- such as bungee-jumping, which an permarket.com. He adds: “Travel insurer could class as “hazardous”. insurance offers holidaymakers the Kate Rose of confused.com suggests peace of mind that they are covered that if not already covered, travellers for lost or stolen possessions, holiday should buy insurance at the point of cancellations, personal liability and a booking holidays. She notes: “Many range of other costly possibilities.” travellers purchase insurance at the The first step, according to Andrew last minute with only lost baggage Ferguson of M&S Money, is to check and medical cover in mind, however if your bank account, or credit card, almost all policies offer cancellation comes with free travel insurance and cover of varied values which will be whether baggage cover comes under invaluable in the event your holiday your home insurance. However he is cancelled.” Rose suggests this is cautions travellers to check these “extremely important given the offer the level of cover you want. increased strikes at airports and air- Andrew Hagger of moneynet.co.uk lines at present.” notes that despite the fact that some Ferguson says: “The absolute most people might question whether it is important thing is to ensure you dis- worth paying £10 or £20 for travel close any pre-existing medical condi- insurance, “if you were to become ill tions before you travel.” Not doing so while away and require medical can invalidate your policy. Hagger treatment, or if you were to have to points out that although many peo- cancel or cut short your holiday, that ple tend to concentrate on cover for £10 or £20 could be recouped at least cancellation, loss or theft of baggage 50 times over.” He adds: “If you were or money, “the biggest potential risk to have an emergency that required and expense is if you become ill or you to cancel your holiday altogether, have an accident abroad. This, along you could easily waste thousands of with liability cover – if you injure pounds in non-refundable airfares somebody else – is probably the key and hotel costs.” part of the policy.” He says: “A decent policy will offer at least £2m for med- ical expenses, with third party liabili- ty cover of a similar level.” 2GET AN EHIC Getting travel insurance shouldn’t Even though just 37 per cent of the be a matter of whether or not, but Europe’s population, at the last how much. With plenty of online polling, had heard of the European competition, costs are remarkably Health Insurance Card (Ehic), anyone low, so there really are no excuses. travelling beyond their borders should definitely get one. It grants SUGGESTED MINIMUM LEVEL FOR access to state-provided healthcare in all European Economic Area (EEA) TRAVEL INSURANCE POLICIES countries and Switzerland, at a SOURCE: MONEYSUPERMARKET.COM reduced cost or sometimes free of charge and is free to apply for at £2m for medical expenses www.euhealthcard.org. The Ehic is a must, but the NHS advises it “is not £1m personal liability an alternative to travel insurance. It £3,000 cancellation – or enough to cover will not cover any private medical healthcare or the cost of things such the total cost of your holiday as mountain rescue in ski resorts, £1,500 baggage repatriation to the UK or lost or stolen property.” But even if you £250 for cash aren’t leaving these shores, Vanessa Chance of insurer LV= suggests get- Policy excesses under £100 ting coverage. Their research shows many people travelling within the Cover for scheduled airline failure and end UK are losing on the costs of hotels supplier failure (as desirable) and flights if forced to cancel. Delay cover (e.g. £20/hour for first 12 hours) CITYA.M. 7 JULY 2011 19

Hot money flows burn ANALYSIS l Brazilian real versus dollar 0.64 USD Brazil’s trade 0.61 0.58 Appreciation of the real is hurting 0.55 the economy, writes Craig Drake 2010 Sep Nov 2011 Mar May Jul

ITH US interest rates being kept Sao Paulo is becoming Some investors are now shying away downplays the minister’s words “The com- what the government may do – clearly fun- artificially low, hot money flows more expensive than from investing in Latin America. Henry ments by the finance minister are quite damentals more than anything else have are hitting emerging market London Lancaster, senior investment analyst at moderate by his standards.” According to driven the recent appreciation of the Weconomies hard. With the US Picture: SXC Coutts, says that they favour strong-growth Kinsella: “If they are actually serious about Brazilian real” says Will Landers, Fund overnight rate currently being held around economies in Asia where monetary policy this issue then they would have to imple- Manager, BlackRock Latin American zero, the Bric countries in particular are has stayed ahead of inflation. Soaring infla- ment further capital controls, which is the Investment Trust. “The central bank being hit as investors try to get the highest tion means that Sao Paulo has become a antithesis of most emerging market eco- should raise rates twice more this year to short-term interest rates possible. But now more expensive place to live than London. nomic doctrines.” 12.75 per cent to ensure that inflation Brazil is really starting to hurt, as high Brazilian finance minister Guido According to Benoit Anne, head of expectations converge to the centre of the interest rates have made the Brazilian real a Mantega has previously referred to the emerging market strategy at Societe stated target at 4.50 per cent for year-end prime target for carry trades. issue as a “currency war that is turning Generale, there is limited upside for fur- 2012.” And as Stephen Barber, adviser to Chris Towner, director of FX advisory into a trade war” and at a press conference ther appreciation and the threat of inter- Selftrade on markets and economics, services at HiFX, points out that Brazil is in London on Tuesday he announced that vention is imminent. As a result, he sees points out, it is unlikely that we will see stuck between a monetary rock and a hard the government would step in to restrain R$1.55 as an important level to watch for. any US rate hikes this side of a presidential place. “The Brazilians are facing a dilemma the speculatory influences that have driv- Though the policy makers of emerging election. As such, Brazil, along with other between a very attractive economy enticing en the real to its current highly overvalued markets are looking at ways to control emerging market economies, is going to foreign investment and a very strong cur- levels. However Peter Kinsella , FX strategist appreciation, there is a limit to what they have to deal with strong currencies for the rency hindering exports.” for Commerzbank corporates and markets, can achieve. “It is very hard to comment on foreseeable future.

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Risk Warning: Complex derivative products traded on margin carry a high degree of risk and are not suitable for every investor. You can lose more than your initial deposit and you should ensure you fully understand all the risks involved. Saxo Bank A/S is authorised by Finanstilsynet, the Danish Financial Supervisory Authority. 20 Wealth Management | Markets CITYA.M. 7 JULY 2011

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VEXED IN THE CITY From zero to bestseller SOLVING YOUR LOVE & LIFE PROBLEMS Simon Toyne has written one of the year’s biggest hits. He tells Zoe Strimpel his success story Drinking and work: a toxic ANCTUS was an instant hit when it Simon Toyne, the came out in April. Waterstones author of Sanctus, shopfronts were full of it, it quickly worked in TV before combination? Sclimbed the bestseller list and the hitting the big time author is tipped as the next (but much with the first in his more talented) Dan Brown. Yet before he thriller trilogy. DEAR VEXED: Summer party season has wrote Sanctus – which is the first in a trilo- meant lots of drinking with colleagues. I gy commissioned by Harper Collins – keep getting drunk in front of them and author Simon Toyne was a regular (ok, a regretting it the next day – not that I’ve regular but quite successful) bloke living in done anything terrible (yet). I can’t figure Brighton, working for a TV production out where to draw the line – is it accept- company. Meanwhile, he’d set his heart on able, professionally and socially, to booze writing a damn good page-turner – no pre- in front of colleagues? Or just foolish. tensions of post-modernist abstraction for Mark, commerical barrister, 31 him – and did it, figuring “now or never”. Similar to the Da Vinci code in its combi- T’s a funny thing about the UK. nation of mythology, murder and religion, Drinking is such an integral, deep-rooted Sanctus nevertheless injects something part of the culture that it has its own fresh to the format of the murderous con- Iallowances and rules. For example, spiracy thriller. Based in an imaginary taking drugs in front of colleagues, CEOs and Turkish city called Ruin (a name inspired MPs would be seriously frowned upon. As by Rouen, France, which Toyne was visiting would simply removing your clothes, or when he had the idea for the story), the my 20s – I also wrote and directed short van eight hours to our rented house and I’d engaging in heated sexual exchange. But drink- action revolves around the Citadel, from films. But I’d do that kind of stuff in my figured out the end of the book. ing to the point of amusing drunkenness? Join which a secret threatens to emerge so pow- spare time. It’s such a luxury to be writing the club! erful that the monks living there will kill to all the time now. What’s the best thing about writing a book? But this exception to the rule of control protect it. The fact that you can do it from home. I and tidiness is a slippery slope, . Because Incredibly detailed in plot and historical How did you decide on a Da Vinci-code style wanted to see the kids growing up and while drinking a bit too much in public is embellishment, Toyne had his work cut out thriller? that’s become possible. completely socially acceptable – even for him when he settled on the idea. But, if I wanted to write a big story, and I quite like applauded – in this country (as opposed to in its reception and cultish following are any- the big blockbustery films – I like big And the worst thing? the US, for example), the line is not clear. thing to go by, the challenge paid off. We effects, lots of chasing. I love the slick mech- The fact that it’s really hard. It takes a long And, because it’s not set in stone, it is caught up with him. anism of a good thriller and have read time. The 13th draft was hard – it’s hard incredibly easy to cross it. What begins as a widely in that area for years. Also, I find staying with it, having faith that it still convivial networking night out wiith How did you actually make the book happen? organised religion interesting, because it’s works. The idea of writing a book is great. friends/colleagues/contacts can soon become It was a manifestation of will – you always woven throughout history: it begs the ques- Starting a book is great. But doing it, mak- a mess of inappropriate advances, embarass- have to exert willpower if you want to tion: “who are we, where did we come ing it work and then putting it out into the ing comments and other major faux pas that undertake something big. You have to from?” world is a different story. could do actual damage to your reputation absolutely decide to do it or you will fail and even your company, – this is true not just of books but every- The story of your inspiration for Sanctus is How has your lifestyle changed since you hit So in answer to your question: play it safe. thing. In the end, I got fed up with my quite amazing, isn’t it? the bigtime? I don’t know what kind of drunk you are, but job, which I realised was just an illusion Yes. When my wife and I set out to France, I can work from home and drop the kids if you’re serious about advancing in your of freedom – the last straw was when ahead of the kids, we went on the mid- off at the school in the village and pick career, you better be the type who doesn’t they refused me more time off when my night ferry. As soon as we set sail, we got hit them up again. And I never miss a sports appear drunk, or you’d be best off just having son was born. So I thought: it’s now or by a gale that shook the ship, so bad it actu- day or a carol concert. And if the sun is a few and going home. never and we packed up, my wife and ally destroyed the duty free. We spent the shining I can let myself knock off early – If the prospect of free alcohol gets you kids and I, and went to France for a year. night trying to hang on to our beds, and though I still have to catch up at some really worked up, remind yourself that if you when we landed at Dieppe, we drove point. And it’s true, I did buy a Porsche excel iat work, rather than sabotaging it for a Had you always dreamed of writing a inland to look for a hotel and ended up in when the book started selling internation- bottle’s worth of bubbly, free drink will stop novel? Rouen, an hour away. I saw a spire as we got ally, but it’s an old one and only cost about being a novelty. In my dimmer distant past I wanted to close, and a quote from Ralph Waldo the same as a large family estate. I’m not The rules are vague, so impose your own. write screenplays. I always loved writing Emerson popped into my head: “A man is a that flash. I’d say: if you want to party, do it in your own and I wrote a couple of spec screenplays in god in ruins”. The next day we drove the Sanctus is published by Harper Collins, £12.99. time. [email protected] BOOKS REVIEWS City Boy strikes again, this time in danger

rounding him. Geraint Anderson, the City does Anderson no The ex-columnist has lost his sparkle with This book sees the injection of a thriller- formerly the favours: he’s merely trading on style plot, involving Steve in a murder anonymous City a now completely cliched this heavy-handed tome, says Susan Sherwin charge and a race for his life as he’s pur- Boy. demonisation of the very world sued by Colombian drug lords hell bent on that a) he chose to enter and b) Margaux fuelled frenzy and two, by capital- not just his skin, but that of his girlfriend that made him rich. The “fath- JUST BUSINESS ising on people’s fascination with the dark Gemma, too. omless avarice” and “hideous BY GERAINT ANDERSON side of client entertainment in the Square Anderson’s writing is at its best when chaos” of his colleagues’ “tireless Headline, £12.99 Mile. His anonymous column, City Boy, he’s chronicling Steve’s action-packed greed” just jangles. which ran in the now-defunct thelondon- escapes and scrapes. The rest of the time, That said, there is a certain neurotic hhiii paper, attracted national attention and well – let’s just say it’s not Shakespeare. energy to the book that makes it scored him a book deal. City Boy: the book, Anderson is no dummy: he went to Oxford. weirdly gripping. It’s old news, was a minor blockbuster, detailing the But his writing suffers from being very red certainly, but as graceless as ITY Boy, aka Geraint Anderson, rode mainly fictional romps of one Steve Jones, a in the face, particularly when he’s going on it is, there is a kind of the success of the City in its pre- good-looking, relatively charming man (and on) about greed, ill-gotten gains and panache lurking that crunch prime in two ways. One: by who had no problem bedding women and financial skullduggery. Borrrrrrring. Anderson should har- Craking in the cash in a Chateau few moral qualms with the corruption sur- Indeed, this ranting about the evils of ness. 22 Lifestyle | Food & Drink CITYA.M. 7 JULY 2011 Crafted for a better taste TIM BADHAM A new City pub is GOING OUT bringing artisan beer to the masses, says Timothy Barber Keeping it

HE British pub industry may be in cri- sis, with scores of venues reportedly cool behind closing around the country each Tweek, but there’s one side of it that’s bubbling along rather nicely. Bars that are dedicating their trade to the kind of special- closed doors ist, low-volume beers you can’t find in mainstream pubs are on the rise, as are the tiny breweries that make the beer. The latest place to open its doors to well- N recent weeks secret doorways have been informed drinkers is the Craft Beer Co, surfacing across London. Following in the Leather Lane in Clerkenwell, in what used footsteps of clandestine operations Eight to be the rather shabby Clock House pub. IBank, ECC, Crazy Bear Members Club and Owner Martin Hays explains that the more recently The Mayor of Scaredy Cat Town growing interest in beer from micro-brew- (which can only be entered through a Smeg eries and the even smaller “gypsy” brew- refrigerator) a little black door has just appeared eries – businesses that don’t have their on Orchard Street by Selfridges. The Black Cat is own brewing premises but borrow space a secretive and fleeting escapade from long- from others – can be linked to the surge in standing clubland lotharios Alex Lambrechts interest in local food sourcing and artisan and Wade Crescent. processes. Before the venue is redeveloped by Mahiki “People are interested in the prove- masterminds Nick House and Piers Adams, it nance and quality of what they’re eating, has been adopted for just three months and is and it’s only natural that they’d start to hosting one-off nights billed as the antithesis of look into beer in the same way,” he says. the West End nightclub scene. With an ‘anti- “Beer is the quintessential British drink, bottle service’ policy they hope to marry East but there isn’t the same connection EndcCool with the Soho dandyism to give birth between us and beer as there is between to Mayfair’s coolest new cocktail destination. the French and wine, for instance. But it is The dance-inducing Rock ‘n Roll tunes are obvi- really on the rise.” ously working as an A-list crowd has already Of course, high-quality, hand-crafted been swinging and bopping the night away. beer has always had its proponents – but Another discreet doorway opens tonight on it’s no longer ghettoised to the much- the beautiful Beauchamp Place in maligned, sandal-wearing real ale brigade. Knightsbridge with the launch of Privée. This is Hip young restaurants like Hawksmoore, a very different proposition, a private luxury Spuntino and Byron Burger are making a start with a blank slate,” he says. “Their The Kernel India lounge bar opening below renowned Lebanese point of offering craft beers, while even experimental attitude has been very Pale Ale, left, and restaurant Layalina. The remodelled space for Waitrose is getting on board: the super- inspiring.” Wild Swan White 120 sophisticated late night revellers features market chain has recently started selling That spirit has been enthusiastically gold Pale Ale by marble, velvet and suede covered walls, an beer from the small Yorkshire brewery taken up by O’Riordan and his peers. the Thornbridge under-lit bar and impressive aquarium-adorned Thornbridge. Boundary-pushing beers like coffee stouts, brewery. Picture: VIP area. As the only club of its ilk in black IPAs and sensationally strong beers – GETTY Knightsbridge it should attract a well-heeled INSPIRED BY THE STATES Scots “punk” brewery BrewDog made crowd from both Mayfair and Chelsea. The phrase “craft beer” actually comes headlines with its 55 per cent ABV brew Beauchamp Place is obviously the place to from the States, where a micro-brewery named the End of History – are common. be at the moment with Galoupet opening a few industry has been thriving for the past few The sandal-wearers are no doubt left snort- doors away with a sl eek, minimalist bar below years. Evin O’Riordan, a former cheese- ing into their tankards, but O’Riordan the restaurant, offering a prolific selection of maker who founded the Kernel brewery in points out this is about quality far more top wines by the glass. Hip Japanese joint Southwark, says it was a trip across the than gimmickry. Kumo next door has recently relaunched and Atlantic that spurred him to move into “The new experimental beers can sit the more traditional Chisou has built up quite a beer making. side by side with the traditional cask ales, following on the old Townhouse site. Look “Because prohibition killed all the small while exploring new possibilities,” he says. closely across the road and you might even spot breweries in the States, the new genera- “We produce 5,000 bottles a week and we the ultimate unmarked door of the Beauchamp tion of producers had no history or tradi- can barely keep up with demand. It’s very Club, although probably not. tions holding them back, and they could satisfying.” Back to Mayfair and the South Pacific port of pleasure Mahiki, which now has another con- THREE CRAFT BEERS FOR SUMMER WHERE TO DRINK IT | LONDON BARS SERVING CRAFT BEER cealed door inside the club, leading to its No-Tell Hotel Room. The private room has a kitsch ‘70s shag pile look complete with double bed, kitchen, lounge, karaoke machine and fancy- Camden Town Helles: that very rare thing, a high quali- The Rake: Tucked away in a side street behind able reputation since opening in Pimlico two years dress outfits. Few people know but even ty British lager. Malty, aromatic and cleansing, it’s the Borough Market, this tiny bar – sister business of ago, and was named this year’s Publican Magazine Maddox has a concealed hush-hush dinner very opposite of common pub lager. Borough Market’s wonderful Utobeer stall –has one Pub of the Year. 6 Charlwood Street, SW1V 6EE. room, perfect for those discreet VIP bashes of the widest selections of bottled and draft beers www.caskpubandkitchen.com behind closed doors. Clerkenwell Pale: the house beer at the Craft Beer Co, from all over the world you’ll find. 14 Winchester Tim Badham is the founder and Managing made specially in a Kent brewery. Fruity and refreshing. Walk, SE1 9AG. www.utobeer.co.uk The Draft House: A trio of friendly pubs – two in Director of Innerplace (ww.innerplace.co.uk), a Battersea, one in Tower Bridge – championing arti- private concierge service that specialises in Dark Star: American pale ale made in Sussex – a classic. Cask Pub and Kitchen: The Cask has built up an envi- san breweries. www.thedrafthouse.co.uk access to the most desirable entertainment and hospitality in London and internationally. OUT OF OFFICE TIMOTHY BARBER

Left, In Retrospect, WILTON’S SUMMER FESTIVAL FRENCH JAZZ AND STYLE IN SPITALFIELDS SOUL ON THE ROOF TERRACE one of the shows this One of London’s most magnificent and historic The Market Coffee House, the atmospheric If you prefer your music al fresco, summer at Wilton’s music venues, Wilton’s Music Hall is playing restaurant and cafe in Spitalfields, has head to the roof terrace of One Music Hall. host to all sorts of musical and theatrical diver- of late become home to some of New Change next week, sions this summer. As well as an eclectic come- London’s most enjoyable music where soul singer Natalie dy programme for the London Comedy Festival, nights, thanks to house band Les Williams (left) will be head- there will be live music, illusionists, contortion- Effrontes. Led by brilliant multi-instru- lining a three-day mini-festi- ists, films and cabaret artists, all falling under mentalist Robin Harris, the group val for charity. Thursday and the collective title of the Anthropomorphic breathes fresh life into the works of Brel, Piaf Saturday nights are free, while Summer Festival. Oh, and there are ping pong and Gainsbourg – expect to find yourself Friday’s £10 fee includes a cocktail tournaments too. Until 9 Sept. For details and singing along, red wine in hand. Friday night, and nibbles. To book tickets, go to tickets www.wiltons.org.uk. 7.30-11pm. www.marketcoffeehouse.com www.onenewchange.com CITY A.M. from 1 to 9 to solve Sudoku thispuzzle. tricky numbers the all contains block 3x3 each and column row, each Place thefrom 1 numbers to 9 in each empty cell so that each SATELLITE & CABLE TERRESTRIAL      QUICK CROSSWORD EPITE I RESP LAST ISSUE’S C E NA I RET BIT LC IONEERELECT SCALES PAPERS I 7 JULY 2011 SOLUTIONS G L L BBC1 AFAhei Weekly Athletix IAAF Uncovered Tour Access NXT WWE: Raw – Night Late WWE: 2.55pm 3 SPORTS SKY 8pm 6.30pm 2 SPORTS SKY Cricket Cup Twenty20 World League Premier Prize Richest Football’s Cricket Cup Twenty20 11pm 9.30pm 6pm 1 SPORTS SKY yln:Tu eFrance de Tour Cycling: 6.55pm EUROSPORT BRITISH 2am-3.30am Golf Open Women’s US Live Britain Thing Big 1.55am 12.55am Panorama – Mail? 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Airline ar otradthe and Potter Harry K TV OK!           1am 5am-6am Demise (5) Absorb food (6) (7) Swimmers sharpshooter (6) famous US Annie ___, (6) vomiting that induces Medicine Steam baths (6) baths Steam Local accent (7) Tenant (6) Tenant business (6) Order of Earmark (7) (5) Acute rtCp:Zero Cops: Brit 1am 10pm h hcg Code Chicago The QUICK CROSSWORD 5.10am 2am 1.50am an Dyer’s Danny h o e Show Ten Top The 5.10am-6am 11pm 11pm ad a Girls Bar Candy osKm on Kemp Ross os Doctor House intKo I Know Didn’t I IDidn’tKnow A&E   A&E Wildlife a & Law Bringing 4.10am Stargate 4am 9pm 5am 4.35am 3am 8pm 12am A Sell  VPICK TV h er fLno’ Soho. London’s of heart in the nightclub lesbian a Bar, at Candy regulars the and staff of loves lives, the revealing Documentary series. New 10PM CHANNEL5, GIRLS BAR CANDY Enos. Mireille Starring son. and her fiance with California to move and her job leave to preparing is Linden Sarah detective homicide Seattle series. New 9PM CHANNEL4, KILLING THE tour. royal official first their and is 30 June on began which Canada, to visit Cambridge’s of Duchess and Duke the on reports Nightingale Mary 9PM ITV1, CANADA IN KATE    7 5 4 3 2 1 DOWN 19 19 17 15 14 12 11 on the body (5) body the on Abnormal swellings Canadian province (7) (4)Rope (6) Papeete capital Polynesia, inFrench Island (5) Implant Marine mammal (4) (5) Fragment Commonly encountered (5) ofShouts approval (6) Source of danger (6) earnestly (7) Urged solemnly or (6) audience an Lines directed to     23 24 Lifestyle | Selfridges & BlackBerry CITYA.M. 7 JULY 2011

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PlayBook up to two times faster than standard chargers and is the perfect accessory for any desktop. £35 £50 26 Sport Be selfish and quit, Lewis Formula One great Rubens Barrichello urges Hamilton to jump ship to Red Bull But Hamilton tells ▲ EXCLUSIVE Bull would see Hamilton compete motorsport great BY JAMES GOLDMAN with defending world champion and this season’s runaway leader WILLIAMS driver Rubens Barrichello Sebastian Vettel, but Barrichello and good to keep has urged Britain’s Lewis Hamilton to believes that scenario shouldn’t deter make the “selfish” career decision to the 26-year-old from joining the turn his back on McLaren and join Buckinghamshire based team. their noses out Red Bull if he wants a guaranteed “If you fear any of your team-mates shot at the world title next season. you might as well not be in the sport,” MCLAREN’S Lewis Hamilton has hit Hamilton’s frustrating season he said, speaking at an event organ- out at feverish speculation over his reached a nadir at the European ised by recruitment company future, telling a host of motorsport’s Grand in Valencia a fortnight ago Randstad, a sponsor of the AT&T biggest names to keep their opinions when both he and Jenson Button crit- Williams team, at Canary Wharf. “He to themselves. icised the performance of their cars. is used to racing with top class drivers Williams veteran Rubens Barrichello That outburst fuelled speculation so being in a team with Vettel would- believes Hamilton should seek a more linking the 2008 world champion n’t put him off joining [Red Bull].” competitive team, while former cham- with a move to the sport’s most dom- Vettel currently leads the drivers’ pions Nigel Mansell and Jacques inant outfit Red Bull. Both parties championship by 77 points from his Villeneuve have urged him to stick have attempted to downplay the link team-mate Mark Webber and Button. with the outfit that groomed him. ahead of this weekend’s British Grand Hamilton is a further 12 points But he said: “I find it kind of funny. Prix, but Barrichello believes behind and Barrichello believes the I’m not sure if anybody really cares Hamilton may find it difficult to McLaren duo will be cut further what certain people are talking about resist Red Bull should they make him adrift unless it rains at Silverstone. – or their opinions. I think if you have a genuine offer. He said: “It’s not McLaren’s type of an opinion, keep it to yourself.” “Formula One is the sort of sport circuit. Red Bull are very powerful on Hamilton denied reports he held where you have to be selfish and the high-speed tracks. In the rain talks about a move to rivals Red Bull make those kind of decisions if you though, McLaren have their strategy and insisted he would not allow the want to get in the best places,” he told worked out better than anyone. If the gossip to distract him from this week- City A.M. “He is a champion and he weather is bad then their chances end’s British Grand Prix at Silverstone. wants to win. He knows what Red will be much greater.” “I don’t have any plans and I’m not Bull is capable of so the attrac- Meanwhile, with only four in a thinking process about the future, tion is there for him. points on the board, I’m pretty comfortable in my con- “It’s easy for us to say he Barrichello (left) has endured a tract,” added the 26-year-old, whose should never leave McLaren miserable season, his 19th in deal expires in 18 months but has a because they gave him a start the sport, and at 39 years of clause allowing him to leave this year. but he is the only one who age could be forgiven for con- “The most important thing is to knows deep down if this is sidering his future. But the focus on the season. It’s far, far too going to be a team that is capa- Brazilian claims his passion early to be thinking of anything else.” ble of getting back to the top still burns as bright as Red Bull remain his most likely suit- and winning.” ever. ors but team boss Christian Horner Hamilton’s frac- He said: “Racing played down a move, questioning the tious relationship is an addiction for feasibility of him driving alongside with former me. I’m here another big beast in Sebastian Vettel. McLaren team- because I love “It’s difficult to envisage a driver of mate Fernando what I do. If it Sebastian’s calibre and that of Lewis Alonso raised was for the under the same roof,” said Horner. questions about money I would “Lewis is a wonderful driver, and his ability to race have stopped a Hamilton is 89 you can understand why he might in a team con- long time ago. points behind want to drive a Red Bull – it’s obvious. taining two It’s been a diffi- Vettel. But would it be the best thing for us? genuine title cult year but it Picture: ACTION We have severe reservations.” contenders. hasn’t changed IMAGES A move to Red my motivation.” SPORT | IN BRIEF Dalglish snares Adam and Cavendish dodges chaos Third time lucky for Pyeongchang WINTER SPORTS: Pyeongchang has been chosen to host the 2018 Winter Olympics. mulls upping Downing bid to snatch 16th Tour win It was third time lucky for the South Korean candidate which lost to Vancouver ▲ ▲ and Sochi respectively for the right to FOOTBALL WHEELER DEALER | CYCLING Briton Bradley Wiggins. host the 2010 and 2014 Winter Games. It was a 16th stage win of LIVERPOOL have reignited their sum- LATEST TRANSFER GOSSIP BRITISH sprint specialist Mark Cavendish’s career, and a welcome Donald hopes for links effect mer transfer activity by agreeing a Cavendish produced a superb finish change of fortune following the dis- GOLF: World No1 Luke Donald believes deal with Blackpool for long-term tar- l ARSENAL are poised to complete to snatch victory in a tumultuous appointment of Monday, when he playing at the Scottish Open this week get Charlie Adam. the £11m signing of Gervinho after fifth stage of the Tour de France. was stripped of points following will improve his hopes of winning the The Scotland midfielder, 25, will the Lille forward’s medical yesterday. The HTC-Highroad rider one of two skirmishes. Open in Sandwich. Donald will play at the sign subject to a medical for a fee (inset) pipped Belgian “It was proper hard, my Castle Stuart links near Inverness for the thought to be around £8m and fol- l CONTROVERSIAL Chelsea coach Philippe Gilbert, of Omega legs were going at the course’s first Scottish Open. “I’ve always lows last month’s £16m deal for Michael Emenalo is expected to be Pharma-Lotto, and end,” he said. “I am really felt like playing links golf leading into the Sunderland’s Jordan Henderson. promoted to sporting director in a Spaniard Jose Joaquin happy with that.” British Open is very important,” Donald Manager Kenny Dalglish is mulling reshuffle caused by the arrival of Rojas, of Movistar, in a Wiggins, of Team Sky, said. whether to up their failed £15m bid manager Andre Villas-Boas. frantic climax in Brittany. was forced to change his for Aston Villa winger Stewart Norwegian Thor bike after becoming one Piggy wins Greenwich event Downing, while Roma goalkeeper l MANCHESTER CITY have sealed Hushovd, of Garmin, of the first to fall. EQUESTRIAN: Piggy French won the Alexander Doni is also close to sign- the signing of Montenegro defender retained the yellow jersey He was followed by London 2012 equestrian venue’s test event ing on a free transfer. Stefan Savic and are keen on Napoli after finishing 10th, while a Contador, whose team-mate in Greenwich Park with two clear show Defender Glen Johnson, mean- striker Ezequiel Lavezzi. series of crashes hampered the likes Nicki Sorensen fell after his tangling jumping rounds aboard DHI Topper W. while, has signed a new contract. of champion Alberto Contador and with a photographer’s motorbike. 27

Results :I@:BcflZ\jk\ij_`i\mB\ek 9i`jkfc 1>cflZ\jk\ij_`i\ ((,$+ (-%'fm\ij %B\ek.0$* 0%(fm\ij %B\ek )gkj Y\Xk >cflZ\jk\ij_`i\Yp.n`Zb\kj%?Xdgj_`i\m9PC<8>L< tain in particular, were delighted ENGLAND skipper Alastair Cook led with the response. 8><JLGL< N`^Xe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)- :Xjkc\]fi[%%%%%%%%%%%%%%%%%%%%%%%% (- from the front with what he Cook said: “I don’t always time the   G N ; C = 8 Gkj described as a career best one-day ball as well as that, a couple of N`^Xe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' (+ * * ,.' *), *( knock as his side crushed Sri Lanka innings don’t stop criticism and I NXii`e^kfe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' (, ' , .-) *'. *' ?l[[\ij]`\c[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' (+ ' - ,+. *+/ )/ by 10 wickets at Trent Bridge to level have to do that over a period of time. Jk?\c\ej%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' (( * - ,++ +(* ), the series with one match to play. “It was outstanding, we were lucky :XkXcXe;iX^fej%%%%%%%%%%%%%%%%%%%%%%%%%%%)' () ( . +0* +** ), James Anderson did the damage to win the toss; the way we bowled C\\[j%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' (' ( 0 ,(- +-. )( with the new ball taking early three was fantastic and put them under :Xjkc\]fi[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' 0 ) 0 ,') ,,' )' ?lcc%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' 0 ( (' +0' +), (0 wickets and with Jade Dernbach, Tim pressure and then knocking them off JXc]fi[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' 0 ' (( +*' ,-( (/ Bresnan and Stuart Broad consistent- without losing a wicket was great.” ?lccBI%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' / ' () ,(+ ,+- (- ly hitting the right areas on a green Cook’s batting decorated the victo- 9iX[]fi[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' . ) (( +(- ,/+ (- ?Xic\hl`ejIC%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' , ( (+ +'' -.+ (( looking pitch the tourists were ry but it was Anderson’s skill up front NXb\]`\c[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' - ' (+ *+. -+, / bowled out for 175. that put England in a position from :iljX[\ij%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' + ' (- *.+ -). + A brief shower meant England’s which they were unlikely to do any- target was reduced to 171 and they thing but record a convincing win. KF;8PËJ;@8IP got there in double quick time. Cook Cook added: “Jimmy was outstand- smashed 95 from 75 balls and open- ing. They all bowled well, I was really :I@:BcXdfi^Xe ?fm\#.%(' % After suffering equally comprehen- bowled well in the power play.” Cook finished unbeaten on 95 to follow his century at Lord’s Picture: ACTION IMAGES email [email protected]

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