BUSINESS WITH PERSONALITY BRITS HEAD JULIA ROBERTS STARS FOR GAMES IN EAT, PRAY, LOVE COMMONWEALTH GETS OK BUT SITE WEEKEND FILM REVIEWS P33 STILL A MESS P38 Issue 1,227 Friday 24 September 2010 www.cityam.com FREE GEOGHEGAN QUITS AFTER MISSING OUT ON CHAIRMAN ROLE Profits hit GULLIVER TO BE CEO • FLINT IS NEW CHAIR • MACKAY TO BE CFO record high at Arsenal

▲ EXCLUSIVE BY FRANK DALLERES

COUP▲ AT HSBC ARSENAL will today announce record BANKING BY VICTORIA BATES pre-tax profits of around £55m, an increase of £10m, as the football club HSBC CHIEF executive Michael continues to reap the rewards of mov- Geoghegan is set to step down from ing to the Emirates Stadium. his role before the end of the year to City A.M. understands that the make way for investment banker strong performance of Arsenal Stuart Gulliver, after a boardroom Holdings’ property development arm coup that will rock the banking sector. has driven an increase in revenue. Geoghegan’s ego will be dealt a fur- The north Londoners’ continued ther blow with the appointment of success off the field will see them HSBC’s finance director Douglas Flint record an increase in turnover for the as chairman, a role Geoghegan is fourth successive year since leaving understood to have coveted since Highbury for their new home. Stephen Green’s resignation earlier Pre-tax profit is significantly up on this month. last year’s figure of £45.5m for the HSBC’s nominations committee has year ending 31 May. That improve- submitted recommendations for ment has been aided by strong sales of Gulliver and Flint to the board, paving apartments in the group’s Highbury the way for official approval of the Square Development. It is understood shake-up when the directors meet in that only a very small number of the Shanghai next Wednesday. 655 residences in the club’s former City A.M. understands that Gulliver, stadium remain unsold. the widely-respected head of HSBC’s The success of that project is investment bank, is to move out to thought to have enabled the club to Hong Kong to take up the chief execu- Michael Geoghegan (l) will be replaced by Stuart Gulliver (m), while Douglas Flint (r) becomes chairman Pictures: REUTERS/GETTY pay off the remaining debt on the tive’s role, after Geoghegan relocated development, which at one stage last year to be closer to the beating Thornton, one of HSBC’s non-execu- spent almost three decades at HSBC, Britain’s largest banks, with the resig- totalled £133m, six months early. heart of the group’s operations in the tives, take up the chair in his place. while Flint joined fifteen years ago. nations of both Barclays chief execu- Revenue has also been boosted by emerging markets of the East. Geoghegan had been grooming Iain Mackay, the finance director of tive John Varley, who will be replaced on-field results, with a Champions Flint, as chairman, will remain Gulliver to be his own successor as HSBC’s Asian operations, is set to be by investment banker Bob Diamond, League run earning the club £27m in based in London at the group’s corpo- chief executive and is thought to have named to replace Flint as group and Lloyds chief executive Eric prize money and revenue. Premier rate headquarters. favoured a scenario with himself in finance director, the third cog in the Daniels in the past few weeks. League income rose past £51m, while News of the boardroom shake-up the chair in Hong Kong and Gulliver new management wheel for the bank. Barclays’ and HSBC’s decision to player trading is expected to show a comes after planning for Green’s suc- as a London-based chief executive. HSBC last night reiterated that “no install well-known investment profit of around £30m. cession took a heated turn. Earlier this Despite the upheaval, investors are decision has formally been made”. bankers as their chief executives is Manchester United reported pre-tax week, Geoghegan is said to have likely to be reassured at the prospect The FSA still needs to sign off on the likely to see them come under politi- profits of £48.2m in January while boiled over at the suggestion that for- of two of HSBC’s most capable old moves. They mark the continuation of cal pressure. league champions Chelsea announced mer Goldman Sachs banker John hands taking control. Gulliver has a period of extraordinary upheaval at ALLISTER HEATH: P2 a £44.4m loss in December. t t t t t ▲ Certified Distribution FTSE 100 5,547.08 -4.83 DOW 10,662.42 -76.89 NASDAQ 2,327.08 -7.47 £/$ 1.57 -0.01 £/¤ 1.18 -0.01 ¤/$ 1.33 +0.01 02/08/10 – 29/08/10 is 93,782 2 News CITYA.M. 24 SEPTEMBER 2010 HSBC’s spectacular boardroom row NEWS | IN BRIEF Dubai to launch $1bn bond sale The Kingdom of Dubai will seek to raise about $1bn (£638m) from a bond sale apart from the fact that it now turns being appointed as the firm’s next holders first (after years of neglecting next week, tapping the market for the out that Michael Geoghegan did chairman; promoting from within is a them), rather than pandering to the first time since Dubai World’s $24.9bn indeed fail to land the top job and is tradition that has served the firm UK government’s absurd anti-invest- debt restructuring. HSBC Holdings, therefore standing down. I have no well, helped maintain its strong corpo- ment banking mood. Deutsche Bank and Standard Chartered doubt that the firm was acting in rate culture and contributed to the It will be a shame to see Geoghegan have been hired to manage the sale of good faith and that the original denial cautious conservatism which saw it go. He was a hands-on, operations the five to seven-year bonds, which is was technically true – but the fact that through the crisis. Flint is used to deal- man, a down to earth banker who likely to be completed by 27 September. the end result is identical has angered ing with regulators; he ought to per- steered the firm through the credit Dubai’s government last sold bonds ear- EDITOR’S LETTER many journalists and left HSBC with form well as the firm’s new public crisis – it never needed a bailout – and lier this year in October, when the egg on its face. face in London. sorted out the Household mess in the Department of Finance raised $1.93bn ALLISTER HEATH Not that any of this should detract Stuart Gulliver, the firm’s head of US. He did make mistakes, of course: from five year, fixed and floating-rate us from the astonishing and brutal investment banking, is an equally one of his errors was that he mishan- Islamic notes. BIG companies need to get their PR in coup that has just taken place at the good choice as the new chief execu- dled his compensation; nearly a quar- order. BP’s reaction to its oil spill was top of such a large and usually staid tive; a talented and charismatic opera- ter of shareholders failed to back the Verizon to pay dividends in 2012 all over the place at first, with its CEO institution. A bitter and seemingly tor, he built up the bank’s bank's pay proposals for its directors US communications firm Verizon hinted Tony Hayward repeatedly putting his uncontrollable power struggle, trig- sophisticated wholesale and markets earlier this year. But let us hope he it may resume dividend payments at its foot in it; the Prudential failed to com- gered by Stephen Green’s resignation operation, succeeding where his pred- reemerges soon in another role. joint venture with Vodafone in 2012. municate adequately to the media as chairman and appointment as ecessors had failed. Like Bob Following the shake-up at Barclays The company, which holds a 55 per cent and shareholders during its hopeless- trade minister, has torn HSBC’s board- Diamond’s appointment as CEO of and Eric Daniels’ looming departure controlling stake in Verizon Wireless, ly mismanaged bid for AIA. Now, dis- room apart; it goes to show that per- Barclays, it is also a brave choice polit- from Lloyds, it is all change at the top stopped paying dividends in a move appointingly, it is HSBC’s turn to mess sonalities matter immensely, even in ically: Gulliver has earned millions in of British banking. If the government widely seen as an attempt to squeeze up on the communications front. an organization that could run on recent years. To the likes of Vince had any sense, it would use the oppor- Vodafone out. Verizon chief executive It branded as “offensive” a story in auto-pilot most of the time. Cable, the business secretary, this is a tunity to draw a line under its City- Ivan Seidenberg said it would probably another newspaper earlier this week It is good that an HSBC insider – bad thing; it will certainly fuel the bashing rhetoric and acknowledge resume dividends once it had paid off its stating that its chief executive had Douglas Flint, the current chief finan- rage of the populist and left-wing that the UK needs a strong and remaining debt. It has $15bn (£9.6bn) threatened to resign unless he were cial officer and a KPMG graduate who media. Yet the big financial institu- healthy financial industry. One can net debt but generates $1bn in cash a appointed chairman. Fair enough – has worked at HSBC since 1995 – is tions are rightly putting their share- but hope. [email protected] month.

7th Floor, Centurion House, 24 Monument Street, London, EC3R 8AJ GSK hit by EU Tel: 020 7015 1200 Fax: 020 7283 5334 Email: [email protected] www.cityam.com Editorial Editor Allister Heath Deputy Editor David Hellier Avandia ban News Editor Ben Griffiths Night Editor Katie Hope Associate Editor David Crow ▲ Business Features Editor Marc Sidwell PHARMACEUTICAL every effort to ensure that physicians Lifestyle Editor Zoe Strimpel BY EMMA SADOWSKI in Europe and the US have all the Londoners are facing another Tube strike on 3 October Art Director Darren Soulsby information they need to help under- Pictures Alex Ridley DRUGS giant GlaxoSmithKline (GSK) stand these regulatory decisions.” has been dealt a heavy blow by Analysts have said that yesterday’s Commercial European regulators, who are forcing ruling is likely to have a negative Unions reject Tube talks Sales Director Jeremy Slattery it to remove diabetes drug Avandia impact on GSK’s future sales streams. Commercial Director Harry Owen from the market on concerns it is Global sales for Avandia reached Head of Distribution Nick Owen linked to increased heart attacks and £771m last year, while the drug gen- strokes. erated £321m in sales during the first ▲ TRANSPORT The unions confirmed that three Distribution helpline Yesterday’s decision by the half of 2010. planned 24-hour strike periods for 3 If you have any comments about the distribution BY EMMA SADOWSKI of City A.M. Please ring 0207 015 1230, or email European Medicines Agency (EMA) to Meanwhile, European sales of the October, 2 November and 28 [email protected] suspend all marketing of Avandia drug during the first half of the year TUBE unions embroiled in a bitter November would go ahead. came after a lengthy review and con- reached £72m, and in the US Avandia dispute with London Underground LU management called on RMT Editorial Statement sultation period. made £164m. (LU) have refused a call by the public and TSSA yesterday to restart talks at This newspaper adheres to the system of The EMA’s decision coincided with transport body to resume talks aimed conciliation service Acas in a bid to self-regulation overseen by the Press Complaints a ruling by the US Food and Drug GSK’s chief medical at averting another strike. reach an agreement over plans to axe Commission. The PCC takes complaints about the Administration (FDA) that GSK could officer Ellen Strahlman Transport unions the RMT and up to 800 station staff. editorial content of publications under the Editor’s continue to market the diabetes Transport Salaried Staffs’ Association Leaders from RMT and TSSA met Code of Practice, a copy of which can be found at said the group’s top www.pcc.org.uk drug – also known as rosiglitazone – (TSSA), which together represent over with senior management from LU priority is patients Printed by Newsfax International, but with severe restrictions. 10,000 Tube workers, said proposals earlier this week, but after six hours Beam Reach 5 Business Park, GSK’s chief medical officer Ellen with type 2 diabetes made by LU “do not go far enough to neither side could reach an agree- Marsh Way, Rainham, Essex, RM13 8RS Strahlman said: “We are making resume talks”. ment. WHAT THE OTHER PAPERS SAY THIS MORNING

being built in the games zone at Stratford, east London. HARMAN COOL ON PLAN TO INDUSTRY LOOKS TO INDIA HMRC ON DEFENSIVE OVER 4.4M BARRELS LEAKED INTO GULF STANDARD CHARTERED CEO HALVE DEFICIT AS FAVOURITE SUPPLIER £1.5BN WRITE OFF OF MEXICO BY BP OIL SPILL SEES UNCERTAINTY IN US Harriet Harman has suggested that British manufacturers seeking lower HM Revenue & Customs (HMRC) has The first independent study of the BP Standard Chartered’s chief executive Labour should scrap its pre-election cost suppliers are targeting India over rushed to quash reports that it is Gulf of Mexico spill has calculated said Thursday that global bankers plan to halve the deficit by the end of China, according to new research. preparing to write off £1.5bn of tax that 4.4m barrels of oil were spilled view the US as an arena of "uncertain- this parliament, becoming the latest Despite recent worries about manu- owed by millions of people who before the well was capped. Research ty"—not knowing what the impact of senior figure to intervene in the facturing capacity going offshore, 55 received incorrect tax demands. The in US journal Science concluded that the November midterm debate over economic direction. per cent of British manufacturers claim emerged after an unnamed the quantity of oil which spilled was Congressional elections will be, nor Labour’s interim leader said the UK have their sourcing relationship with HMRC staff member reportedly told enough to fill 700,000 cubic metres. "how long the US expansionary fiscal was now in a “new situation” and the a domestic supplier, says KPMG. the BBC that the Revenue is likely to They said that about 58,000 barrels of stance is going to be sustainable" plan – set out by Alistair Daling, for- However, its global manufacturing write off the tax underpayments dat- oil escaped per day until a temporary amid still-unresolved issues from the mer chancellor – was a manifesto outlook warned that 36 per cent of ing back to 2005/06. cap was effectively put in place. US mortgage crisis. pledge rather than a template that businesses intend to reduce their should be kept in opposition. sourcing from local suppliers in two BIG FOUR GRIP COULD PUSH UP LIB DEM DONOR URGES CABLE TO STOP 'SECOND LOOK': FIRST AID years primarily on grounds of cost. AUDIT FEES BANK BASHING AND DEFEND CITY FOR BORROWERS GOOGLE-STYLE COMPLEX The stranglehold of the Big Four Paul Marshall, the hedge fund manag- Many of the biggest US banks, criti- PLANNED AFTER LONDON OLYMPICS EUROPEAN NATIONS PRESSED accountants over the audit market er and high profile Liberal Democrat, cised since the financial crisis erupt- International companies are being TO SURRENDER IMF BOARD SEATS has led to big companies paying high- has urged Vince Cable to stop bank ed for making fewer loans and invited to form a Google-style digital European countries must give up er fees to have their accounts scruti- bashing and focus instead on defend- toughening borrowing standards, and creative business complex in the seats on the board of the nised, a leading mid-tier accountant ing the City against onerous and dam- have launched what industry offi- Olympic Park after the London 2012 International Monetary Fund (IMF) if has told a House of Lords inquiry. So aging regulations. He said Cable was cials call "second look" programs to games. Olympic chiefs are seeking the institution is to remain credible, entrenched is their dominance it has behaving like a "minister who wants review rejected loan applications. expressions of interest for the use of the Brazilian representative at the become almost impossible for small- to make his mark” rather than doing Banks are also reviewing those they the huge broadcast and press centre IMF has warned. er firms to challenge them, said BDO. what was "important for the country". rejected for small-business loans. CITYA.M. 24 SEPTEMBER 2010 News 3 Five ministers Fears grow cut early deal with Treasury

over second ▲ POLITICS FIVE departments have agreed budget cuts with the Treasury ahead of the comprehensive spending review EU debt crisis (CSR), as the government gears up for the toughest fiscal tightening in Britain’s peacetime history. The foreign office, cabinet office and the Treasury itself have all ▲ EU ECONOMY 204 bps from 195 bps. The Spain five- reached early agreements on cuts. BY MATTHEW WEST year CDS spread was at 242 bps versus The department for communities and 234 bps on Wednesday, while Greece local government and the environ- FEARS of a second European widened to 828 bps from 813 bps. ment department have also cut an Sovereign debt crisis grew yesterday Spanish telecommunications giant early settlement with the Treasury. as economic data showed Ireland’s Telefonica also cancelled a bond sale The CSR will take place on 20 October. second quarter GDP fell while uncer- on concerns about the creditworthi- Foreign secretary William Hague tainty over how the country will sup- ness of the Eurozone’s most indebted and cabinet office minster Francis port its banking sector triggered a nations. Maude will now join George Osborne sell-off in its bond markets that sent Official figures showed Ireland’s and chief Treasury to the secretary gilt yields to a record high. GDP fell 1.2 per cent in the second Danny Alexander in a “star chamber” The sell-off came after the Irish gov- quarter as imports grew unexpected- Traders were shocked by a fall in second quarter GDP Picture: REUTERS to assess other department’s spend- ernment signalled that holders of ly. ing plans. Communities secretary Anglo-Irish bank’s €2.4bn worth of More broadly, economic data ANALYSIS l Cost of insuring Anglo Irish debt surges Eric Pickles and environment secre- subordinate debt may have to accept showed the manufacturing and serv- tary Caroline Spelman are also a “haircut”, as it confirmed it would ices sectors in the Eurozone slowed expected to sit in the chamber. extend its bank guarantee scheme for more than expected in September. 700 Most government departments will three months. The Eurozone Purchasing have to slash their budgets by around The spread on five-year Irish sover- Managers Index (PMI), compiled from 600 25 per cent in real terms over the next eign credit default swaps (CDS) surveys of around 2,000 businesses five years as part of spending cuts widened to as much as 490 basis ranging from banks to restaurants, 500 announced in the chancellor’s emer- points (bps) yesterday, meaning the showed sentiment fell to 53.8 in gency budget in June. cost of insuring $10m of debt over September from 55.9 in August, its 400 The five departments have relative- five years jumped to $490,000. lowest reading since February. ly low annual spending compared to Meanwhile, the spread on five year The index also indicated Ireland, €10m (€000) insure Cost to 300 ministries like defence, transport and Portuguese CDS widened to 419 bps Spain and Italy were in danger of welfare, where a much fiercer battle from 391 bps and Italy widened to falling back into recession. Oct Dec Feb Apr Jun Aug is likely. LABOUR LEADERSHIP: P9

CITYA.M. 24 SEPTEMBER 2010 News 5 FSA hauls in

Above: Richard Broadbent, Barclays Above: Ruth Markland, Standard bank execs Above: John Thornton, HSBC Below: Penny Hughes, Royal Bank of Chartered Below: Tony Watson, Lloyds over bonuses Scotland Below: Thomas Huertas, FSA

▲ REGULATION “[The talks] are part of a regular engagement when we issue an open BY EMMA SADOWSKI consultation,” said a spokeswoman at TOP officials from Britain’s largest the regulator. banks have met at the Financial It is understood that the FSA has Services Authority (FSA) to discuss the asked the senior banking figures to regulator’s proposed crackdown on respond to the paper by 8 October. banker’s bonuses and pay. July’s publication of the remunera- Last month heads of remuneration tion code outlined a number of sug- from each of the top banks met at the gestions banks might have to financial watchdog to discuss ways in consider when it came to bankers Get on your bike on your which the banks would adhere to the pay, including deferred bonus pay- revised remuneration code, which ments and the proportion of bankers’ has already caused a flurry of politi- pay that should be in shares or cash. cal debate. The FSA is proposing that at least City Break to Holland The talks, which were hosted by the 40 per cent of a bonus must be FSA’s banking sector leader Thomas deferred over a period of at least three Huertas, were the result of a consulta- years, and that 60 per cent must be tion paper issued by the regulator in deferred when the bonus surpasses July. £500,000. Attendees included HSBC’s John Similarly, the FSA has said that at Thornton; Sir Richard Broadbent least 50 per cent of any variable remu- from Barclays; Ruth Markland from neration components should be Standard Chartered; Lloyds Banking made in shares. Group’s Tony Watson; and Penny The news comes after FSA chair- Hughes from Royal Bank of Scotland. man Lord Adair Turner on The FSA told City A.M. that a meet- Wednesday said there a need to move ing had taken place but sought to dis- away from the “demonisation of over- tance itself from suggestions that it paid traders” and that bad policies – was held in secret or the result of a not just bankers – were to blame for special summons. the financial crisis. Three phone calls key to EMI dispute

▲ BANKING rate phone calls and was advised by BY MATTHEW WEST him to bid 265p per share to secure a deal. THE legal battle between Guy Hand’s Terra Firma will also argue Citi had Visit Amsterdam, private equity firm Terra Firma and a strong motive to ensure the EMI Citigroup looks set to hinge on three deal happened, as it earned £6m in Rotterdam & The Hague phone calls Hands claims he received fees for advice to the label and £80m from David Wormsley, head of Citi’s for financing the private equity bid. All within 35 mins of Amsterdam Airport investment banking division, it Wormsley is expected to say one of emerged yesterday. the three calls never happened and The case, which begins in New York the two other calls were about differ- on 18 October, centres on Hand’s ent topics. acquisition of music label EMI which Citi will cite the flight log for London to he now claims he was duped into pay- Hands’s private jet and Wormsley’s ing £4bn for. The record label’s value mobile phone records to say the has halved since the deal in 2007. banker called him twice for about 30 Hands alleges he was told of a rival seconds each time – allegedly suggest- Amsterdam bid for EMI of 262p per share from ing he left voicemails – after the Cerberus by Wormsley in three sepa- plane had taken off. from Alexon reports improved trading £ .99 single despite flat first-half profits 29 inc. taxes

▲ RETAIL per cent for the first seven weeks of the second half, with some margin BRITISH fashion retailer Alexon improvement. posted a flat adjusted pretax profit For the 26 weeks ended 31 July, for the first half as it was hurt by pre-tax profit before exceptional lower inventory levels, but said trad- items on continuing operations was ing since the half year was encour- nearly flat at about £1m We fly from Gatwick, Luton and Stansted. Price correct as at 8 September 2010. Available to book now for travel aging. Revenue fell 10 per cent to £69.7m The company, whose brands as disruptions such as air transporta- between 31 October 2010 and 26 March 2011. Variable charges for hold baggage apply and some payment include Ann Harvey, Eastex and tion issues led to lower inventory lev- methods attract a handling fee. See website for details. Dash, said like-for-like sales rose 3.1 els. 6 News CITYA.M. 24 SEPTEMBER 2010 Germany’s Evolution set largest steel to chew over firm quits Iran ▲ INDUSTRIAL GERMANY’S biggest steelmaker ThyssenKrupp has joined a growing Panmure bid list of businesses which have with- drawn from Iran in response to ever- harsher sanctions against the Islamic Republic. ThyssenKrupp said it would freeze ▲ FINANCIAL SERVICES brand name and… 64 corporate all new business immediately and ter- BY VICTORIA BATES clients in the UK”. minate existing contracts as soon as “Panmure has a strong footprint in possible. It is the latest in a series of STOCKBROKER Panmure Gordon yes- the UK and US with significant German companies to cut ties with terday thumbed its nose at larger growth potential and has a clear Iran. Others include Daimler, Munich rival and potential bidder Evolution, international development strategy Re, Siemens and Allianz. insisting that it is firmly on track in both the Middle East and the A spokesman for ThyssenKrupp said with its strategy as an independent emerging markets as an independent Iran accounted for less than 0.5 per firm. entity,” the group added. cent of group revenues of €40.6bn Evolution said that a “possible Panmure, which is due to report (£34.5bn) in its last financial year to 30 offer” for Panmure was one potential first half results next Wednesday, said September 2009. option being weighed up by the that QInvest – Qatar’s largest invest- Most of its existing business in Iran group’s board, led by chief executive ment bank, which last year snapped comprised engineering projects for Alex Snow, though it stressed that up a 44 per cent stake in the firm – is cement factories, he added. plans are at a very early stage and supportive of that strategy. The announcement came as Iranian that no formal discussions have yet Evolution’s interest is the latest President Mahmoud Ahmadinejad been initiated. development in a lengthy saga of con- told the United Nations that most peo- “The company is keen to assess solidation in the City’s small to mid ple believe the US government was Panmure Gordon’s upcoming trading cap broking sector, which has taken a responsible for the attacks of 11 results before determining whether heavy hit from lower activity levels September 2001, prompting US dele- there is any merit in taking its delib- during and in the wake of the finan- gates to storm out in protest. erations further,” Evolution said in a cial crisis. Another theory, he said, was “that statement to the stock exchange. The news sent Panmure’s stock some segments within the US govern- Panmure countered its rival’s dec- rocketing on the Alternative ment orchestrated the attack to laration with an indignant reply of its Investment Market (Aim) yesterday, reverse the declining American econo- own, arguing that it “is a well capi- adding 8.6 per cent over the day to my, and its grips on the Middle East, in talised business, with a well respected close at 31.5p. Panmure chief Tim Linacre (top) and Evolution boss Alex Snow order to save the Zionist regime.”

8 Technology News Google wins If key piracy case in Spain life

gives

Google hailed the ruling as a victory for internet freedom Picture: PA

▲ TECHNOLOGY out this process: YouTube complies with the law.” BY STEVE DINNEEN This is the second major victory for GOOGLE yesterday won a landmark Google this year. In June a US judge ruling when a Spanish judge threw threw out a $1bn (£670m) lawsuit out a claim it should be responsible accusing the company of turning a for pirated content on its YouTube blind eye to illegal videos on YouTube. service. Viacom claimed “tens of thousands Broadcaster Telecinco said it had of videos, resulting in hundreds of suffered as a result of hit shows millions of views,” had been posted appearing on the video-sharing web- based on its copyrighted works. site before they are broadcast in Spain. It said Google ignored the infringe- But a judge said the anti-piracy ments but US district judge Louis you measures in place are sufficient and Stanton decided it would be unfair to responsibility lies with the copyright hold the internet giant liable for sim- holder to alert Google to breaches. ply having a “general awareness” that The win will come as a massive videos might be posted illegally. relief to Google, which would see Instead he said sites like YouTube YouTube grind to a halt if it was should not be held accountable for forced to monitor every piece of con- monitoring content uploaded by tent uploaded. third-party users, so long as it com- Google claimed the ruling was a plied after a complaint was lodged. win for internet freedom. A Google Viacom says it plans to take the spokesman said: “We are very pleased case to the US second circuit court of with today’s ruling. The win today appeals, claiming Stanton’s ruling confirms what we have said through- was “fundamentally flawed”. Zuckerberg: No Dell shows off Facebook phone new tablet PC ▲ FINANCIAL SERVICES ▲ ECONOMY FACEBOOK founder Mark Zuckerberg BLACKBERRY maker RIM is under- quashed rumours his firm is ready to stood to be ready to unveil an “iPad lemons release a phone to compete with killer” tablet computer at its annual Google and Apple. DevCon conference next week. The 26-year-old said he is only inter- The firm has been rumoured to ested in “deeply integrating” have been working on a tablet device Facebook services into existing since the roaring success of Apple’s phones and said he would have fired iPad. But few expected it could have the source of the leak. the “BlackPad” ready in time for the But he refused to completely rule Christmas market. The firm said it out a Facebook phone, saying he does not comment on rumours or couldn’t predict what the social net- speculation. work will do down the line. Meanwhile Dell showed off a new Zuckerberg was named ahead of seven-inch tablet and said the compa- both Steve Jobs and Rupert Murdoch ny is on track to bring in more than in the Forbes Rich List this week. $60bn (£38bn) in revenue this year. CITYA.M. 24 SEPTEMBER 2010 Labour Leadership 9

Brothers David and Ed Miliband have gone head-to- head in the Labour Candidates jockey leadership election for shadow cabinet

▲ POLITICS if he misses out on the crown. But Ed Miliband hopes he can keep BY DAVID CROW David in politics by making him shad- ED Miliband will offer his brother the ow chancellor. Labour MPs are wor- job of shadow chancellor if he ried that a shock resignation could emerges victorious in tomorrow’s overshadow the party conference at a leadership election, according to cam- time when they should be fighting paign insiders. back against the coalition. David Miliband was seen as a shoo- If David Miliband were to become in for the leader’s job before younger shadow chancellor it would be a sibling Ed threw his hat into the ring, major blow for Ed Balls, who also has and friends say he could quit politics designs on the job. Black hole in Miliband plan, say the Tories

▲ POLITICS must find £55bn of cuts or taxes, the BY DAVID CROW Tories say. Meanwhile, the Tories say Ed THE Tories have stepped up their Miliband has made over £28bn of attacks on the Labour leadership can- spending commitments, while offer- didates, claiming bookies’ favourite ing just £5bn of tax rises. That would David Miliband must find £55bn of mean he has a £67bn black hole in his cuts to pay for his campaign promises. campaign promises, assuming he Ed Miliband, who is also within backs Darling’s deficit reduction plan. touching distance of winning the lead- The claims are contained in a ership contest, will have to find £67bn dossier authored by Matt Hancock, a of spending cuts to fulfil his pledges, new Tory backbench MP and a former the Tories say. adviser to chancellor George Osborne. David Miliband backs former chan- He said “Both Milibands have feebly cellor Alistair Darling’s deficit reduc- opposed all action the coalition has tion plan, which implied £44bn of cuts taken to deal with the deficit, and by 2014-15. have made billions of further promis- But the Tories say he has opposed es.” £33bn of cuts outlined by the coali- But an aide to David Miliband dis- tion, including a rise in VAT, cuts to missed the findings. “David’s always housing benefit and linking public said he’d wait for the comprehensive sector pensions and benefit to the CPI spending review before offering measure of inflation. detailed plans. We don’t even know He has also made a raft of spending what they’re cutting yet – it’s a bit rich promises in the campaign, including for them to start asking us.” more free school meals, a living wage The dossier comes a day before the and a national care service for the eld- result of the Labour leadership ballot, erly. The Tories say these will cost more which will be announced on the eve of than £22bn. the party’s conference in Manchester Having outlined just £11bn of new tomorrow. Bookmakers and party taxes, such as a mansion tax and a levy insiders expect a photo finish between on bankers’ bonuses, that means he the Miliband brothers. FAST FACTS | HOW LABOUR WILL CHOOSE ITS NEW LEADER THE VOTE SHADOW CABINET ● The voting is split equally three ways ● The new leader will not have the between Labour members of the national power to choose members of the “shad- and European parliaments, party mem- ow” cabinet, the Labour front-bench bers and members of affiliated trade team that monitors, criticises or opposes unions who have not opted out of paying the decisions of ministers from the a political levy. Conservative-Liberal Democrat coalition. ● The votes for each nominee in each ● Labour members of parliament will section are then calculated as a percent- elect 19 members of the shadow cabinet, age of the total votes cast in that section. of whom at least six must be women. If any candidate receives a majority of Nominations open on September 26 and votes, they are declared the leader. If not, the results will be announced late on the last-placed contender drops out and October 7. their second preferences are reallocated, ● The new leader decides which cabinet until someone passes the 50 per cent fig- job each of those elected will get, but ure. the procedure means he or she could end ● The winner will be announced on up working with shadow cabinet mem- Saturday before the party's annual con- bers who have a different political view- ference in Manchester. point. 10 EDITED BY CITYA.M. 24 SEPTEMBER 2010 VICTORIA BATES GOT A STORY? EMAIL The Capitalist [email protected]

“Old Faithful WORLD’S Bill Gates RICHEST remains on his gilded RACK UP THE throne as the BILLIONS world’s rich- est man for

GOOD times are rolling back, steadily and the 17th year surely, if the latest Forbes rich list is any- thing to go by. Amid all the doom and in a row” Lambert Smith Hampton’s winning team gloom last year, well over three quarters of the 400 billionaires on the list saw their find, a four-year matured Parmesan; the wealth tank, with almost $40bn (£25bn) hottest, “Naga Chilli Cheese Bombs”, draining out of the coffers of the top ten. infused with one of the world’s hottest This year, the hard times are but a dis- chillis; and also, bizarrely, the sweetest – a tant memory for the world’s wealthiest – sticky toffee cheddar. over half of whom are now worth more Go on, we dare you. than they were last year, while only 84 out of the 400 are now weeping over emptier Microsoft’s Bill Gates: These aren’t your bog-standard gym wallets. the world’s richest bags, rucksacks or embossed briefcases, TEAM WORK Old Faithful Bill Gates, the founder of man for the past 17 mind – we’re talking evening clutch bags, Kudos for commercial property group Microsoft, remains on his gilded throne as years. fashioned out of a haul of racing green Lambert Smith Hampton (above) yesterday, the richest man in the world for the 17th Lehman vinyl bank envelopes the designer taking the title for recruitment firm year at a stretch, with a fortune of $54bn – Picture: REUTERS picked up for next to nothing at an estate Ambition’s annual five-a-side footy tourna- up $4bn on 2009. Octogenarian invest- sale. ment for property and professional servic- ment guru Warren Buffett was a distant The clutch bags – featuring the bank’s es clients at the Powerleague centre near second with $45bn, also up $5bn, while logo imprinted on the lower right hand Bishopsgate. Oracle founder Larry Ellison’s bank bal- corner – are currently retailing at $38, Soldiering on despite monsoon-like ance stayed level at $27bn, keeping him in showing that there really is no accounting downpours, the teams – also including third place. for taste. Henderson, British Land, Cushman & The biggest mover was Facebook whip- Wakefield, law firm Berwin Leighton persnapper Mark Zuckerberg, whose for- Paisner and the runner up, Arram Berlyn tune more than tripled to $6.9bn from CHEESE WEEK Gardner – clearly had their competitive $2bn, while the wealth of the entire 400 Fans of the pongy stuff will be aware that hats on. hit $1.37 trillion, up from $1.27 trillion in this weekend marks the start of national No less than four “sin-binnings” were 2009. Buffett talked shop with Jay-Z Picture: REUTERS cheese week – a perfect excuse (if any were doled out by the referees in the first cou- needed) to indulge. ple of games, before the teams wised up to the things in what he's saying, right?” the On hand to help out City workers in the strict rules of the field. CHART TOPPERS rapper said. need of a fix is Gerrie Knoetze, the owner While we’re on the subject of the Forbes “Because if you don’t look at the tickers, of Farringdon favourite Vivat Bacchus, rich list, there was an end to waiting yes- you’re really just searching for the truth who tells me he’s put together the most JAZZ HANDS terday for those desperate to find out what within all the numbers and all the chaos. daring cheese board in the world to mark Merchant Securities’ resident jazz star was talked about when the Sage of Omaha And that’s the key to being a recording the occasion. John East, the deputy chief executive and Warren Buffett met rapper Jay-Z earlier artist too. You’re telling your story or find- The board includes a particularly smelly chairman of corporate finance, is up to his this week. ing your truth…” contender, of course – the Vieux Lille, musical tricks again, I hear. Turns out, the unlikely pair have more which takes its nickname “Puant de East – a keen player of the in common with their “business strate- Lille” from the French for Hammond organ – is back with his gies” than anticipated – and had a ball FASHION FIX “stinky”. regular band on 27 October at the comparing stock picking to making My, oh my, but purveyors of Lehman Then there’s the 606 Club in Chelsea, with the music. Brothers memorabilia haven’t half been priciest cheese addition of new guitarist “When you come to a conclusion you busy of late, to coincide with the anniver- around – the “Brillat Carl Orr and a horn sec- have to really not care what other people sary of the firm’s bankruptcy earlier this Truffe”, which is tion. say. Just follow the facts and your reason- month. flavoured with rare For chums and interest- ing,” Buffett said, adding that investors Not only have we two well-trailed auc- truffles – and the ed parties who can’t get should think of stocks “not as something tions of Lehman’s art collection in New runniest, the along to the gig, never with a ticker symbol that wiggles around York and London tomorrow and next “Epoisse”. fear – it’s being recorded but [as] part of a business”. week: Fashion blog Refinery29 has also In addition, to add to previous live Cue fervent nodding from Jay-Z. “I dredged up a lady selling bags embossed there’s the oldest numbers on a CD due for could just hear all the similarities and all with the bank’s logo. cheese Knoetze could release later in the year.

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12 Consumer News CITYA.M. 24 SEPTEMBER 2010 M&B profit fed by food sales Luminar hit by another

per cent. packages of sites, as well as mainte-

▲ fall in revellers at clubs LEISURE “This is a very encouraging per- nance and conversions of existing formance, particularly given the pres- pubs. BY JOHN DUNNE ent consumer economy, and Fowle said the group planned to ▲ PUBS and restaurants group Mitchells underlines the strength of the spend £90m on expansion with LEISURE had a net operating cash inflow dur- & Butlers yesterday reported a surge Mitchells & Butlers business,” said £110m being invested in mainte- ing the period and had made £3.7m in food sales in recent weeks and said chief executive Adam Fowle. nance and conversions. Fowle said NIGHTCLUB owner Luminar yester- from the sale of four properties, it was looking to make acquisitions as The switch towards higher-margin the company will spend about £50m day reported a further slump in sales enabling it to continue to trade with- it re-shapes itself into a food-led busi- food sales has enabled the company purchasing single sites, small groups as fewer revellers went clubbing at its in the terms of its banking facilities. ness. to improve its operating margin of pubs and new build sites in retail venues. Luminar has suffered from rising M&B, which has over 2,000 pubs which it expects will have risen by 1.2 parks and town centres. Luminar, which issued three profit unemployment within its key 18-24 and restaurants and whose brands percentage points to 16.5 per cent in He added: “We’re keeping our warnings in its last financial year, customer age group. include Harvester, All Bar One and the year to 25 September. options open although we feel no said sales at its 76 clubs were down Meanwhile, the World Cup also Toby Carvery, reported a 4.4 per cent M&B, whose chains also include pressure to do larger transactions.” 20.2 per cent in the 26 weeks to 26 took its toll as the nation tuned in to increase in sales at outlets open for the Sizzling Pub company, O’Neills Clapham House and Carluccio’s August with admission revenue down watch football rather than hitting more than a year in the nine weeks to and Ember Inns, said it was planning have recently received bids. In by 26.5 per cent and customer num- nightspots. Chief executive and 18 September, with food sales rising to invest about £200m next year on Carluccio’s case the offer came form bers down 19.1 per cent. founder Stephen Thomas stepped by 7.1 per cent and drink sales up 2.2 acquisitions of single sites and small the Middle East. The company said, however, that it down last year.

NEWS | IN BRIEF

Starbucks in plan to raise prices Asda is given Starbucks said yesterday it could no longer resist “extreme” surging coffee prices and would be forced to raise some prices. Chief executive of the US- owned chain Howard Schultz said he Total number of had tried to freeze prices as long as pos- go-ahead for sible. But he admitted: “The extreme Asda supermarkets nature of the cost increases has made it untenable for us to continue to do so 374 and we have been forced to take the steps we announced.” He pledged to maintain or even lower the price of Netto deal some espresso drinks and Starbucks' “tall” 12oz brewed coffee. Coffee prices Total number of on world commodity markets are close ▲ RETAIL mid-sized stores in the next five years. Netto stores: to 13-year highs. Arabica beans current- Speaking before the OFT decision, ly trade at around $1.80 per lb, com- BY MARION DAKERS Asda’s property spokesman Jonathan pared with less than $1.40 last spring. ASDA will sell around a quarter of its Refoy told City A.M. the firm is keen to The beans from Colombia and Central newly-acquired Netto supermarkets, move into city centres including 194 America have been hit by two seasons the Office of Fair Trading said yester- London and Birmingham. of poor harvests. The prices of lattes and day, in a blow to the grocer’s expan- “London for us is a core market, cappuccinos are among those set to rise sion into smaller city-centre outlets. there’s no doubt about it. We have got under the shake-up at the largest coffee Asda paid £778m for Netto in May, quite strict growth targets. Moving chain in the world. Schultz added that but said yesterday it will find buyers into central London, it’s a long way Asda must sell on speculators had also forced the price up. for 47 shops after the OFT raised com- from happening right now. But we petition concerns. The supermarket will learn a lot from operating the Netto branches Alexon upbeat on trading is likely to be spared a grilling by the smaller Netto stores.” Analysts said Fashion retailer Alexon has posted a Competition Commission if it co- the ruling could reduce the benefits marginally higher pre-tax profit for the operates with the OFT, which will of the deal, depending on which first half in spite of lower stock levels police potential buyers to ensure they stores are sold and whether Asda can and said that trading since the half year fit in with each store’s local area. find buyers. “There’s no shortage of 47 looked promising. There was a 10 per The Walmart-owned chain said the appetite for stores,” said RBS analyst cent fall in revenue at the company, sale will push back the re-opening of Justin Scarborough. “But it does cre- whose brands include Ann Harvey, the other 147 branches, which was ate uncertainty.” Eastex and Dash but it reported an planned for the Christmas period, to Total cost of adjusted pre-tax profit figure on contin- the first quarter of 2011. ANALYSIS l Wal-Mart Stores uing operations of £950,000, up from 54 p OFT senior director of mergers 53.64 acquisition in May £900,000 last year for the 26 weeks Amelia Fletcher said: “The OFT is con- 23 Sep ended 31 July. After £9m in exceptional fident that, if agreed, this package of 2010 costs in 2009 following the collapse of remedies will safeguard competition 52 its Bay Trading subsidiary, Alexon has ... to the benefit of local shoppers, embarked on a major recovery plan. A while allowing the remaining store 50 large part of this includes a £10m purchases to go ahead.” £778m reshaping of its property profile, funded The Netto purchase will boost by the sale of stores earlier in the year. Asda’s portfolio of smaller supermar- 48 The retailer is left with 1,092 concession kets to just below 200, in line with outlets and 63 stand-alone stores across Asda’s plan to open 100 new small to 28 Jun 19 Jul 6 Aug 26 Aug 16 Sep 80 Europe. CITY VIEWS: WHAT IS THE OUTLOOK FOR BOOKSELLERS IN THE DIGITAL AGE ? Interviews by Alasdair Peoples and Victoria Scholar Foyles profits surge after ANTHONY COLLINS | MIKE STOKES | TD SECURITIES IT-FREEDOM boom at London flagship I think the process of buying a book People will certainly continue to buy from a shop will become a rarity. You books in the traditional way. I think

can have thousands of books at your that the electronic book market will ▲ RETAIL decided not to pay a dividend in fingertips these days on a kindle or an develop alongside. There will always order to strengthen the balance iPad. Actually I'm thinking about get- be a demand for copies of books to Foyles bookshop yesterday sheet Sales growth has mainly announced profits ahead of expecta- come from the two established ting one just now. have them signed. tions for the financial year with bookshops at the Royal Festival Hall operating profits up five-fold year- on London’s Southbank and St ANNA OLDINGER | on-year. Pancras International station as well Like-for-like sales grew by 9.7 per as the flagship store at Charing NOMURA cent, following a bumper Christmas. Cross Road. The store has a planned The net pre-tax profit figure for the ground floor extension reiterating Book retailers may be affected by things like Kindle in the short term but they will never be completely year ended 30 June was £335,935 the company’s growth trend. redundant. People will still like to snuggle up on the couch with a good book. I can’t imagine parents reading to whilst turnover grew by 1.9 per cent Chairman of Foyles, Christopher to £23.1m. Foyle said: “I am very pleased with their children from a computer screen. The directors have once again the trading results for the year.” CITYA.M. 24 SEPTEMBER 2010 News 13 China denies cheap yuan

▲ CURRENCIES ing, flatly rejecting any link between of Representatives committee sched- the level of the Chinese yuan, or ren- uled a vote for today on a China cur- BY HARRY BANKS minbi, and US trade deficits. rency bill that would treat China’s PRESIDENT Barack Obama met “The main reason for the US trade “undervalued” currency as an export Chinese Premier Wen Jiabao yester- deficit with China is not the renmin- subsidy and allow the US Commerce day as US lawmakers appeared closer bi exchange rate, but the structure of Department to impose countervailing than ever to acting on long-standing trade and investment between the duties on Chinese products to offset threats to penalise China for keeping two countries,” he said in a speech to the undervaluation. its currency artificially low. US executives and China experts in Critics say China deliberately Wen staged a pre-emptive defence New York. undervalues its currency by as much Wen Jiabao denies deliberately keeping China’s currency weak Picture: REUTERS of China’s policies ahead of the meet- Wen’s talk came after a US House as 25 per cent to 40 per cent. EU calls for Diageo boss roaming fees talks up UK to be slashed tax exodus ▲ TELECOMS ▲ LEISURE BY HARRY BANKS BY MARION DAKERS LARGE roaming fees charged by tele- DRINKS firm Diageo’s chief executive coms operators are “an outdated con- warned the government yesterday cept” and the European Union is that companies will move out of the prepared to take steps to reduce the UK if the tax regime deteriorates. costs, the bloc’s telecoms chief said Paul Walsh said governments often yesterday. misunderstand how multi-national Digital Agenda Commissioner companies operate. Neelie Kroes, who oversees telecoms “It doesn’t matter where we’re and the internet across the 27-coun- based, and governments can forget try EU, signalled she was prepared to that,” said Walsh. “So if they start to continue to cap lucrative roaming think they can be cute on tax, they’ll charges that have been a strong force us to consider other options.” source of income for mobile phone Diageo, which makes much of its companies. profit abroad through sales of Scotch Her predecessor, Viviane Reding, whisky, has drawn criticism recently shocked the telecoms industry in for closing many of its Scottish bot- 2008 by capping the amount mobile tling factories. Walsh had threatened phone companies could charge for to take the whole company abroad, calls, sending text messages and but said yesterday he has reconsid- downloading data while abroad. ered since the election. The European Parliament backed “The last thing I want to do is re- the proposals last year. domicile this company, but in the “The [European] Commission’s face of substantial increases in tax I review of the Roaming Regulation would have to look at it,” he said at must look at the source of the prob- the opening of a new whisky distill- lem and potential solutions in their ery in the Scottish Highlands. full context,” Kroes said in the text of The London-based maker of a speech prepared for delivery at a Smirnoff vodka, Johnnie Walker European Telecommunications whisky and Guinness beer said last Network Operators Association month it remained cautious over (ETNO) conference. growth in Europe and North America. “The relevant context is the lack of Walsh came under fire after the com- a really competitive single market for pany revealed he netted £6m in salary all aspects of telecoms services in and perks last year, despite the Europe.” gloomy outlook for the firm. In her previous job as EU competi- tion commissioner, Kroes imposed ANALYSIS l Diageo fines worth billions of euros on com- 1,140 p panies that broke EU antitrust rules. 1,092.00 Kroes said a genuine EU single mar- 1,120 23 Sep ket should be one where price differ- 1,100 ences between voice, text messages and data were based only on the actu- 1,080 al cost of providing these services. 1,080 Kroes added: “The exorbitant cost of ‘roaming’ abroad within the EU is 1,040 an outdated concept.” 28 Jun 16 Jul 5 Aug 25 Aug 15 Sep BMI to start flights to Libya in December United fans share tickets ▲ TRANSPORT the release by the Scottish govern- ▲ SPORT FINANCE Supporters’ Trust are furious the BMI will operate flights from ment of the only man ever convicted American family has saddled the pre- BY MATTHEW WEST Heathrow with the first seats avail- of the bombing, Abdelbaset al ONE in eight Manchester United fans viously-debt free club with in excess UK airline BMI is to launch a daily able to book from today. Megrahi, on compassionate grounds. plan on sharing season tickets this of £700m of debts. service from London to Tripoli from 1 Libya is keen to expand its tourism Wolfgang Prock-Schauer, chief exec- season, a new survey by Virgin Money However, Manchester United are December 2010, it said yesterday, in a market as the country attempts to utive of BMI, said business customers has revealed. not the only club facing a problem possible sign of thawing UK/Libyan rehabilitate its international reputa- would benefit from “even more The club has so far failed to sell its with fans sharing season tickets, with relations tion following the bombing of Pan choice between the UK and Libya” quota of season tickets for the year. A supporters of Arsenal, Liverpool and Until now British Airways was the Am flight 103 over Lockerbie in 1988, with domestic and long haul connec- sustained campaign by fans unhappy Tottenham completing the top four. only UK airline to operate a route to which killed all 243 passengers. tions via Heathrow. with the club’s ownership by the Blackpool fans are the least likely to Libya, with flights to Tripoli begin- However, relations have been Prices from London Heathrow to Glazer family has also hit sales. double up on tickets, with just two ning in1999. strained over the last year following Tripoli start from £265 return. Fans led by the Manchester United per cent saying they would do it. 14 News CITYA.M. 24 SEPTEMBER 2010 Mortgage approvals slump Major inflation risks should ease, says MPC’s chief economist Dale

▲ tral bank earlier this week showing ued to fall and was down by £1bn in

PROPERTY ▲ BY HARRY BANKS approvals levels at a 16-month low. August. Net consumer credit lending ECONOMY moment as MPC members strove to The British Bankers’ Association remained flat. work out whether risks of above or THE number of loans approved for (BBA), whose members account for The figures are likely to reinforce DEBATE over the Bank of England’s below target inflation were predomi- buying houses fell in August to its about two-thirds of mortgage lend- concern among Bank of England poli- Monetary Policy Committee (MPC) nating. lowest since the housing market ing, said mortgage approvals fell 22.3 cymakers that tight lending condi- has entered a particularly aggressive The Bank currently forecasts that trough in 2009, industry data showed per cent on the year in August to tions may hold back Britain’s and vigorous phase as policy-makers consumer price inflation of 3.1 per yesterday, suggesting housing market 31,767. This was down from 34,219 in economic recovery. struggle to assess the relative cent should fall back to its target weakness is set to continue. July and the lowest since April 2009, Recent surveys show house prices strength of upside and downside level of two per cent by the end of Mortgage approvals are a good indi- when house prices were at their low- have started falling again and ana- risks to inflation, Bank chief econo- next year, but this hinges on contin- cator of house price trends around six est ebb. lysts said a rise in the number of mist Spencer Dale said yesterday. ued economic growth and ongoing months down the line, and the fig- The BBA also said that net lending properties being put up for sale Dale said the policy debate was public confidence that the central ures chime with data from the cen- to non-financial businesses contin- would also weigh on the market. particularly aggressive at the bank has not lost control of prices. NIKE DOES IT Danaher drops BlueCrest in $1bn sale of defence unit

second spot ▲ DEFENCE DIVERSIFIED US manufacturer Danaher has dropped plans to sell its aerospace and defence business for with AllBlue more than $1bn (£640m) after no buyer emerged for the entire busi- ness. Danaher, which hired Goldman ▲ HEDGE FUNDS said the placings prove “there is still Sachs earlier this year to solicit buy- considerable demand for listed ers for the business that makes avia- BY VICTORIA BATES hedge funds, despite the growth of tion safety equipment and weapons BLUECREST AllBlue yesterday became competing structures such as UCITS platforms, had received interest only the second largest listed hedge fund III”. for different parts of the unit, but it after it tapped investors for £83.3m in “It shows there is strong support did not want to break up the busi- its third share placing in nine for funds managed by a single hedge ness. months. fund group, such as BlueCrest, which Danaher has not entirely ruled out The only larger listed hedge fund is offer exposure to a range of hedge the possibility of splitting up the divi- BH Macro, which was floated by fund strategies,” he added. sion to several different buyers, but it Brevan Howard in 2008. BlueCrest ANALYSIS l BlueCrest AllBlue is less likely because any piecemeal AllBlue now has assets of £904m 168.5 p 167.60 sale would take longer. across its three share classes, while 23 Sep Danaher, whose wide range of BH Macro has a combined £1.17bn, products includes dental and med- according to data from RBS. 167.5 ical technology, speciality tools and BlueCrest AllBlue placed a total of equipment for testing water quality, 52.6m new shares with its investors, 166.0 generated $11.2bn of revenue in equivalent to just under a tenth of its 2009. share capital. It had previously raised 165.5 Its aerospace and defence business, £101m in December last year and NIKE, owner of the iconic Niketown store on Oxford Street (pictured), posted a higher which accounts for $700m to $800m 164.5 £349m in June. quarterly profit yesterday on strong demand in North America, China and the emerging in annual sales, makes a broad array Mark James, a managing director markets. Net income in the sportswear giant’s first quarter rose nine per cent to $559m of products including smoke detec- 25 Jun 23 Jul 20 Aug 17 Sep in the investment funds team at RBS, (£356m) on revenues up eight per cent at $5.18bn. Picture: Micha Theiner/City A.M. tion and fire systems. UniCredit starts hunting for permanent August car output surges chief after Alessandro Profumo quits due to export orders rise ▲ ▲ BANKING to prepare the criteria for a successor executive, has left UniCredit rudder- AUTOMOTIVE 77,882 vehicles in August, some 57,005 to Alessandro Profumo, but there is less as it struggles to recover from the of which were destined for export, a ITALY’S biggest bank UniCredit took a still no list of candidates, said a financial crisis and a series of acquisi- CAR production in August was 37.3 rise of 51.8 per cent on the year. first step in picking a replacement for source close to the issue. tions. Chairman Dieter Rampl is act- per cent higher than a year earlier, and “UK vehicle and engine production its chief executive yesterday, who Profumo quit on Tuesday amid ing chief executive and has vowed to year-to-date output was up by an annu- continues to lead a strong manufac- resigned this week after a power clash board rancour over Libyan stake- replace Profumo in a matter of weeks. al 41.3 per cent, the Society of Motor turing recovery,” said SMMT chief exec- with shareholders. building and flagging results. The Bank of Italy yesterday added Manufacturers and Traders (SMMT) utive Paul Everitt. The board’s strategic, governance The departure of Profumo, its voice to those calling for a speedy said yesterday. Commercial vehicle output rose and remuneration committees began Europe’s longest-serving bank chief succession. SMMT said carmakers turned out 22.1 per cent on the year. CITYA.M. 24 SEPTEMBER 2010 News 15 US property sales stabilising...... but unemployment

▲ edges up in 27 states PROPERTY remain 19 per cent below the 5.1m year fixed-rate mortgage fell to a sales in August 2009. record low of 4.43 per cent in August Y MATTHEW WEST B Lawrence Yun, NAR chief econo- from 4.56 per cent in July. The average SALES of existing homes in the US mist, said home sales would remain rate was 5.19 per cent in August 2009. ▲ US ECONOMY 67,000 jobs. rose last month following a big cor- subdued. “The housing market is try- The average house price in the US The the US Labour Department rection in July, a new report said yes- ing to recover on its own power with- now stands at $178,600, up 0.8 per MORE than half of US states saw their said the unemployment level fell in terday. out the home buyer tax credit. cent from a year ago. Distressed unemployment rates rise in August, only 13 states while it was unchanged The National Association of Despite very attractive affordability homes sales rose two per cent from a the largest number in six months, as in 10 states and Washington, DC, Realtors (NAR), the US trade body rep- conditions, a housing market recov- month earlier to 34 per cent of all hiring weakened across the country. The figures were worse than the resenting estate agents, said existing- ery will likely be slow and gradual sales in August. They accounted for 31 Overall, the economy lost 54,000 previous month, when the unemploy- home sales increased 7.6 per cent to a because of lingering economic uncer- per cent of all sales the year before. positions in August and the unem- ment rate increased in only 14 states seasonally adjusted annual rate of tainty,” he added. Yun said the figures were proof ployment rate rose to 9.6 per cent and fell in 18. It was the largest num- 4.13m in August from an upwardly US mortgage lender Freddie Mac that the US housing market had been from 9.5 per cent in July. Private ber of states to record an increase in revised 3.84m in July. But they said the average interest rate for a 30- “stabilising” over the past year. employers added a net total of only the jobless total since February. Phoenix rises Songbird is in from ashes

IN THE depths of the economic crisis – which hit the property sec- talks to build tor more than most – many thought the Walkie Talkie would never be built. News that Land Securities and Songbird are press- ing ahead with plans to resurrect it, like a phoenix from the ashes, Walkie Talkie show just how much things have improved. Songbird’s results suggest its The Walkie Talkie could transform London’s skyline optimism is not without basis. Its ▲ PROPERTY project, which generated an initial adjusted net asset value (NAV) of yield of 5.2 per cent when it was sold 178p missed analyst expectations Y MARION DAKERS B to Evans Randall in August. “It estab- ADVISERS bank. White is responsible for more of around 185p, but elsewhere SONGBIRD, the property company lished a calling card for us, as it’s the than $16bn (£10.2bn) of alternative things look good. The value of its that owns most of Canary Wharf, has first time we’ve built outside Canary JP MORGAN investments across the EMEA region. portfolio rose 4.3 per cent in the confirmed it is in talks with Land Wharf, and it showed we had the ROTHSCHILD The Rothschild team is headed up by first half, while occupancy stands Securities to resurrect the abandoned capacity.” MORGAN STANLEY Duncan Wilmer, who has been with the at an impressive 96.4 per cent. Its Walkie Talkie project on Fenchurch The firm said it expects JP Morgan bank for 15 years. As well as working open offer to raise £140m, getting Street . to decide whether to stay in Canary with Songbird, he has advised property its creditors off its back, was well “We are in advanced discussions Wharf in the next few months. investment firms Minerva and Liberty received. about a 50-50 joint venture, and we Songbird also announced a £140m International. He is also a keen runner, Its shares might trade at an 11 are expecting a decision in the near share issue yesterday, in order to refi- When Songbird arranged a £1bn emer- and completed this year’s London per cent discount to NAV – a term,” Songbird secretary John nance a £135m loan facility from gency finance package in 2009, it asked Marathon in under four hours. smaller discount than many Garwood told City A.M. yesterday. Commerzbank. JP Morgan Cazenove, Rothschild and Bronson Albery heads the team at rivals – but its focus on London The 36-storey skyscraper will cost Its half-year results showed that the Morgan Stanley to advise. Given the JP Morgan Cazenove. His recent deals and list of institutional tenants an estimated £300m to build and, if value of Songbird’s net assets rose 2.1 firm’s subsequent success, it is unsur- include Metric Property’s IPO and mean this stock will continue to Songbird and its subsidiary Canary per cent to £1.22bn, while underlying prising that it has stuck with the same Great Portland’s £175m rights issue. outperform. Wharf Group sign up, will be the pre-tax profit in the six months to advisers for its latest share offering. Advising Songbird on legal matters group’s second project in the City. June to £13.1m, from fell from Heading the team at Morgan Stanley is Slaughter and May, while Nicholas “Drapers Gardens was a good tem- £89.7m last year. is Nick White, head of international Holmes at Ashurst is advising the bank- BOTTOMLINE plate for us,” Garwood said of Songbird’s Aim-listed shares closed alternative investments at the private ing cohort. Analysis by David Crow Songbird’s 20 per cent stake in the down 3.5 per cent at 152p. Credit Suisse commodity star quits to Rio Tinto clears the way set up hedge fund after Obama reforms for $347m Iceland update ▲ BANKING big bets on energy markets at a series Credit Suisse and Blackstone ▲ MINING capacity by 20 per cent to around of Wall Street firms, is the latest declined to comment on the moves. 230,000 tonnes. A TOP Credit Suisse commodity trad- response to the Obama administra- Investment banks like Credit Suisse RIO Tinto Alcan has finalised a deal “The $347m investment was facili- er is leaving the bank, along with a tion’s decision to crack down on so- with proprietary trading desks are with an Icelandic power firm to begin tated by working together with local team of proprietary traders, to set up called “speculative” trading. taking a hard look at their trading a $347m (£221m) update of its alu- stakeholders to ensure the long-term a hedge fund backed by $150m Eight people will be leaving the businesses and whether they comply minium smelter in the country. sustainability of the smelter. This (£95m) from private investment firm bank, including Taylor, the global with the so-called Volcker rule, part The London-listed miner has signed investment is great news for Rio Tinto Blackstone Group, head of commodities arbitrage trad- of financial reforms designed to rein a contract with Landsvirkjun to allow Alcan and for Iceland,” said Jean- The move by George “Beau” Taylor, ing, and Trevor Woods, head of ener- in banks from making risky bets with it to use more power at the smelting Philippe Puig, Rio’s president of met- a rainmaker renowned for making gy arbitrage trading. their own capital. site for the next 26 years, boosting als in EMEA. 16 News CITYA.M. 24 SEPTEMBER 2010

ANALYSIS l Global M&A Volumes Annually 4,500 Value US$ bln Blockbuster files 4,164 4,000 Global ($bln) US Target ($bln) Energy deals buoy 3,603 for bankruptcy 3,500 3,397 Europe Target ($bln) Asian Pac. ex Japan Target ($bln) 3,000 2,882 over $1bn debts 2,679 best quarter for 2,500 2,058

▲ 2,000 1,877 MEDIA 1,688 1,678 1,500 1,346 1,204 M&A in two years THE US arm of video and games rental store Blockbuster filed for 1,000 bankruptcy yesterday in an attempt ▲ to cut its debts and restructure its 500 FINANCIAL SERVICES Third quarter activity this year business. BY ALASDAIR PEOPLES remained stable, down one per cent The company has been struggling 0 from the previous three months at to meet payments on debts of $1bn 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 THE VALUE of global mergers and $201bn – yet this represents a 41 per (£637m). Agreements with its credi- acquisitions (M&A) has hit $1,678bn cent rise from the third quarter of tors will now allow the company to ANALYSIS | WORLDWIDE M&A RANKINGS (£1.068bn) so far this year, up 21 per 2009. Despite positive global figures, reduce the debt to $100m. 2010 YTD 1 Jan - 30Sep Financial Adviser Deals Value No. cent from the same time last year, European M&A announced in the Blockbuster said the bankruptcy Rank 09 Rank US$ Deals Thomson Reuters said in its review third quarter of 2010 was worth a dis- did not include its non-US operations. for the third quarter of 2010. appointing $144bn, down 15 per cent It has some 4,000 stores in the UK, 1 2 Goldman Sachs & Co 391,791.6 255 Third quarter activity is up 6.8 per from the previous quarter. Canada, Denmark, Italy and Mexico. 2 4 JP Morgan 344,116.6 216 cent from the previous quarter at Wall Street investment banking Jim Keyes, Blockbuster’s chief exec- $599bn, marking the strongest quar- giant Goldman Sachs took the top 3 1 Morgan Stanley 340,113.4 276 utive, said the company would now terly growth for worldwide M&A position in the global M&A advisers’ be able to recapitalise its balance 4 5 Credit Suisse 270,684.0 216 since the third quarter of 2008. rankings with 255 deals, up from sec- sheet and transform its business 5 8 Bank of America Merrill Lynch 257,160.9 170 Driving the deal flow was the ener- ond last year, ahead of Morgan model to “meet the evolving prefer- gy and power sector, with $349bn of Stanley and JP Morgan. ences of our customers,” 6 7 Deutsche Bank AG 234,159.0 180 deals announced in the first nine In Europe, JP Morgan leads the Blockbusters was slow to react to 7 11 Barclays Capital 230,191.9 103 months of 2010, up 65 per cent on the rankings for the first nine months of competition from the online rental same period a year earlier. the year, up from ninth place last market. It launched its own online 8 9 UBS 192,227.8 185 M&A deals by US firms have also year. subscription service in 2004 but was 96Lazard175,895.6193seen an encouraging rise in deals over The most high profile deal of the already several years behind the US 10 3 Citi 171,431.2 121 the past nine months, reaching a year, worth an estimated $43bn, is market leader, Netflix, which total of $576bn, up 13.7 per cent from the ongoing takeover attempt of launched in 1999. - - Industry total 1,677,668.9 28,125 the first nine months of 2009. Potash Corp by BHP Billliton.

WORLD’S BIGGEST WINDFARM OPENS IN KENT

THE world’s largest United Utilities sale offshore wind farm opened seven miles off the coast of Thanet in Kent yes- terday. The project can generate 300 raises up to £600m megawatts of wind-powered ener- gy – enough to power 200,000 ▲ ENERGY sales are completed in the second its debt portfolio, we are well posi- homes, according BY MARION DAKERS half of the financial year, and tioned to deliver outperformance to energy secretary added it will now shift focus to its over the 2010-15 regulatory peri- Chris Huhne. UNITED Utilities said yesterday it core business of supplying water od.” Swedish energy will net around £600m from sell- and sewage services to around 7m The group said it has financial company ing most of its non-regulated busi- people in the north west of headroom to cover its liabilities Vattenfall, which nesses, as it announced trading in England. until the summer of 2012, but that spent more than line with expectations. The company said yesterday ongoing infrastructure work two years building The UK’s largest listed water trading was in line with expecta- means capital expenditure will the 100-turbine company has agreed to sell twelve tions for the six months to remain high this year. wind farm, is one operations since April, including September. However, it expects The coalition’s changes to corpo- of the biggest wind its water and electricity meter underlying profit to be lower than ration tax will mean a deferred tax power operators in business MeterFit, a stake in con- last year, mostly due to a 4.3 per credit of £50m in the next finan- Europe. tracts with Southern Water and cent effective drop in energy bills cial year, the firm said, with a sav- three Scottish private finance ini- following a price review by Ofwat. ing of more than £200m during tiatives, with a total enterprise Chief executive Philip Green the five-year life of the Parliament. value of £600m. said: “We believe that, with the Shares in the blue-chip firm United Utilities said it will rein- group’s consistent focus on its closed 0.5 per cent down at 573p vest the money once most of the core activities and the low cost of yesterday. PARK LANE CITY APARTMENTS

WE HAVE AN URGENT REQUIREMENT FROM A BANK THAT NEEDS 1 & 2 BED APARTMENTS FOR A LARGE African Minerals suffers INTAKE OF ANALYSTS IN THE BISHOPSGATE AREA.

•NO MORE THAN 10 MINUTES WALK FROM LIVERPOOL STREET STATION set-back in Sierra Leone •COMMUNAL AREAS/HALLWAYS MUST BE WELL PRESENTED AND CLEAN •WE WILL PAINT & FURNISH THE APARTMENTS IF REQUIRED ▲ MINING by China’s Shandong Iron & Steel pointment, but that deals with •WE WILL MAINTAIN THE APARTMENTS TO A HIGH STANDARD BY DAVID HELLIER Group had been amended. Chinese firms are often delayed. •WE WILL OFFER A 1 OR 2 YEAR CONTRACT TO SUIT YOU As a consequence of the renewed AFRICAN Minerals. the Aim-listed terms, African Minerals will get the ANALYSIS l African Minerals •INTRODUCE A PROPERTY WE LET TO RECEIVE £100 iron ore and base metals miner first part of its payment – $800m– 440 p 387.50 chaired by entrepreneur Frank three months later than originally 23 Sep 420 Timis, yesterday signalled a delay in planned. Other stages in the joint the formation of a joint venture venture process are also being put 400 PHONE: 020 7377 1763 company that is working on a mas- back. sive development project in Sierra Timis said: “Both parties have 380 WWW.parklane-cityapartments.com Leone. been working hard to complete the 360 The group issued a statement say- due diligence and finalise workable ing that its memorandum of under- terms.” 340 standing for a $1.5bn (£957m) Numis Securities analyst Cailey investment in the Tonkolili project Baxter said the news was a disap- 28 Jun 16 Jul 5 Aug 25 Aug 15 Sep

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Together we make the diff erence To play go to www.postcodelottery.com/cityam.htm To discuss commercial partnership call Simon Crunden on 0131 555 8981 CITYA.M. 24 SEPTEMBER 2010 News 19 Pension funds back FRC code Kennedys makes unique

▲ move to open Miami arm REGULATION nies”. Pension Fund Forum, Merseyside The BT Pension Scheme Pension Fund, Northern Ireland Local BY EMMA SADOWSKI Management, BBC Pension Fund, Government Officers’ A RAFT of UK pension funds have RAILPEN Investment, Environment Superannuation Committee, ▲ LEGAL York and Washington in the first come out in support of the Financial Agency Pension Fund and the Strathclyde Pension Fund and the instance. Reporting Council’s (FRC’s) new University Superannuation Scheme West Midland Pension Fund were also CITY law firm Kennedys opened up Kennedys said it made the move Stewardship Code. were among some of the largest of involved. its first office in America with the because Miami acts as an underwrit- Eleven pension funds, collectively the signatories. The Stewardship Code is aimed at launch of a unit in Miami. ing and claims hub for the region. It valued at £180bn, have banded Daniel Summerfield at the creating more transparency over how The insurance specialist is set to won’t practice US law. together to back the new code, set out Universities Superannuation Scheme, investors oversee the companies they open in the Floridian city at the start Madrid-based partner Alex by the FRC in July. said: “The onus is now on institution- own, with hopes that it will act as a of next month in a bid to get closer to Guillamot will re-locate to Miami to In a letter sent to the financial al investors to respond positively and catalyst for better engagement the firm’s Latin American and set up the office and will be joined by watchdog, the pension funds said constructively to the Code if we want between shareholders and compa- Caribbean clients. associate Paula Jimenez and paralegal they “welcomed the FRC’s initiative” to avoid any further regulation in this nies. It will be the first foray into the Karla Salguero. and the code’s “potential to enhance area.” The FRC has said that it will contin- American market for Kennedys, with Senior partner Nick Thomas said: the quality of engagement between Regional pension funds, Lothian uously review the code, a move her- the firm choosing an unusual desti- “It’s now time to start supporting institutional investors and compa- Pension Fund, Local Authority alded by the pension funds. nation as most law firms target New clients from inside this region.”

BEST OF THE BROKERS

ANALYSIS l Wellstream 782.50 ANALYSIS l Debenhams ANALYSIS l Imperial Tobacco p p 64.45 p Petrobras on 800 23 Sep 68 2,000 23 Sep 1,927.00 23 Sep 1,950 700 64

1,900 600 60 track for its 1,850 500 56 1,800

400 52 1,750 £50.4bn sale 28 Jun 16 Jul 5 Aug 25 Aug 15 Sep 28 Jun 16 Jul 5 Aug 25 Aug 15 Sep 28 Jun 16 Jul 5 Aug 25 Aug 15 Sep WELLSTREAM DEBENHAMS IMPERIAL TOBACCO Citigroup has downgraded its rating of Goldman Sachs has updated estimates for After Imperial Tobacco’s pre-close state-

▲ Wellstream from “buy/high risk” to Debenhams. The broker hasn’t changed its ment, UBS remains happy to be at the low ENERGY £143bn over the next five years. The programme will focus on “hold/high risk” as the premium seems “neutral” rating for the retailer but has end of the consensus range since cigarette BY HARRY BANKS Brazil’s vast deep water crude largely priced in and there is the potential moved its price target from 92.5p to 89.2p. volumes appear weaker than expected and BRAZILIAN state oil company deposits that the South American for a takeover deal to not go through. The The broker estimates that risks to the price revenue appears to be below the broker’s Petrobras has received more than nation hopes will turn it into a enough investor interest to sell all major energy exporter. broker prefers to wait and see on what target include weaker sales, higher import- growth expectations. The broker maintain the stock in the biggest share sale in The company plans to double cur- might happen with the British-based oil ed costs and stronger competitive pres- a “neutral” rating and said management history in an offer worth up to rent output to almost 5m barrels per services company. sures in UK retail. need to outline an organic growth strategy. £50.4bn, two sources familiar with day of oil equivalent by 2020. the situation said yesterday. The issue will also go to reinforc- The offer is “comfortably oversub- ing Petrobras’s balance sheet to keep To appear in Best of the Brokers email your research to [email protected] scribed” with strong investor its indebtedness within its self- demand, said one of the sources, imposed limit of 35 per cent of equi- though is probably not two times ty, thereby safeguarding its valuable oversubscribed given the size of the investment grade rating with the AstraZeneca files thyroid cancer pill in deal. world’s leading credit rating agen- A second source said heavy cies. demand for shares was fuelled by This month the firm filed to sell the strong participation of state pen- 1.59bn new preferred shares and both United States and European Union sion funds and institutional 2.17bn new common shares - figures investors. that do not include a “greenshoe” A large slice of the offer – £27bn – option that would expand the offer will go to the Brazilian government, on extraordinary demand. ▲ PHARMACEUTICAL accepted submissions for vandetanib. reduction in the rate at which their the company’s controlling share- The “greenshoe” option could take The FDA also granted priority review disease progressed compared to those holder, in exchange for 5bn barrels the offering to as much as £50.4bn. AN AstraZeneca pill that disappoint- status, meaning the agency will make taking a placebo, results of a late- of oil in the newly discovered pre-salt ed last year in treating lung cancer a decision in early 2011. stage study showed. oilfields, so called because they are Petrobras chief has now been submitted for regulato- The company had previously said it The medicine had once been seen trapped under several kilometres of executive Sergio ry approval as a treatment for thyroid planned to file in the third quarter of as a potential blockbuster but it suf- seawater, rock and a hard-to-pene- cancer, offering the drugmaker a 2010, after presenting promising clin- fered a big setback after failing to trate layer of salt. Gabrielli is close to smaller sales opportunity. ical results. show an overall survival benefit in The company will use the pro- pulling off the world’s AstraZeneca said the US Food and Patients with advanced medullary lung cancer, leading AstraZeneca to ceeds to finance the world’s largest biggest share sale Drug Administration (FDA) and the thyroid cancer (MTC) given vande- pull regulatory filings in that disease oil investment programme worth European Medicines Agency had tanib experienced a 54 per cent last October.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Victoria Bates in association with

tions group. O’Leary said: “I would like to sincerely investment management firm specialis- LCCI He joins from Threadneedle Asset thank Emmanuel for his significant con- ing in convertible bond-themed funds. The London Chamber of Commerce and Management, where he spent a decade tribution to successful growth of Prior to joining Ferox, he spent 15 years Industry has appointed British Airways boss in several senior client-facing roles, with Ryanair. He leaves the board with our at Morgan Stanley. Willie Walsh as its new president following an a particular focus on European distribu- sincere gratitude and best wishes for election at its annual meeting on Wednesday tion in Belgium, Holland and the future.” JP Morgan night. Scandinavia. While there, he also Paul Knox has been appointed to lead Walsh, 48, will serve for two years, until launched and headed the firm’s global London Capital Group the bank’s private banking wealth advi- after the 2012 Olympics in London. He has financial institutions group. The spreadbetting, forex, CFD and sory practice for the EMEA region. been chief executive of BA since October 2005, broking specialist said yesterday that Knox, formerly head of the bank’s UK having also previously spent a period at the Ryanair non-executive Jack Inglis has stepped wealth advisory practice, joined JP helm of Irish carrier Aer Lingus. The airline said yesterday that non- down with immediate effect to pursue Morgan four years ago. He had 25 executive Emmanuel Faber has retired other interests. years of prior experience at the London from its board of directors after eight Inglis, 47, has been on the board bar and with Ernst & Young, where he Schroders Tjeerd Voskamp as a senior relationship years in the role. since April 2007. He is chief executive was responsible for the private client The asset management group has hired director in its global financial institu- Ryanair chief executive Michael of Ferox Capital Management, a London services group in London.

To appear in CITYMOVES please email your career +44 (0)20 7557 7245 updates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com 20 Markets&Investment CITYA.M. 24 SEPTEMBER 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) 3i ...... 281.90 +0.80 310.00 246.90 Compass ...... 540.50 +5.50 574.50 350.10 JPMorgan Emerg Mkts ...... 579.00 –0.50 587.50 437.10 Sage ...... 256.70 +4.20 262.20 208.20 3i Infrastructure ...... 113.80 — 115.00 97.00 Cookson ...... 499.30 –10.70 616.00 347.60 Jupiter Fnd Mgmt ...... 240.40 +0.90 256.50 180.00 Sainsbury(J) ...... 389.70 –0.80 394.40 307.60 A.B. Foods ...... 1067.00 –1.00 1096.00 790.00 Croda Intl ...... 1417.00* +9.00 1460.00 637.00 Kazakhmys ...... 1428.00* –13.00 1634.00 955.00 ...... 1396.00 +23.00 1450.00 1053.00 ...... 152.40 +3.50 155.60 111.00 ...... 499.00 –1.50 539.00 381.00 ...... 141.10* –1.00 162.00 98.45 Schroders Aberdeen Asset Man Daily Mail ‘A’ Kesa Electricals Schroders N/V...... 1139.00 +13.00 1187.00 864.00 Admiral ...... 1643.00 –7.00 1686.00 1003.00 Dana Petroleum ...... 1793.00 +2.00 1817.00 968.50 .LQJÀVKHU ...... 224.90 –4.40 255.00 196.50 ...... 121.20* –2.00 137.30 103.10 ...... 394.40* +0.30 442.30 356.00 ...... 139.50* –2.30 174.29 114.60 Scot. & Sthrn Energy ...... 1133.00* +1.00 1206.00 357.50 Aegis Davis Service Ladbrokes ...... 626.50 –1.00 630.00 475.00 Afren ...... 106.90 +0.90 111.00 73.00 Debenhams ...... 65.05 +0.40 90.00 51.95 Lancashire Hldgs ...... 555.00* –2.00 560.00 416.70 Scottish Mortgage African Barr Gold ...... 600.00* –1.00 685.00 520.50 Derwent London ...... 1504.00 +12.00 1540.00 1174.00 Land Securities ...... 625.00* –1.50 743.50 543.00 SEGRO ...... 263.40* +0.90 390.00 244.00 Aggreko ...... 1545.00* –24.00 1639.00 664.50 Dexion Absolute ...... 140.00 +0.50 148.00 127.60 Legal & General ...... 101.30* +0.90 105.00 69.05 Serco ...... 622.50* +1.50 656.50 485.60 Alliance Trust ...... 332.10 +1.10 352.70 292.80 Diageo ...... 1092.00* — 1176.00 930.50 Lloyds Banking Gp ...... 75.09 –0.76 79.15 45.30 Severn Trent ...... 1344.00 –2.00 1404.00 939.50 AMEC ...... 973.50 +17.50 974.50 724.50 Dimension Data ...... 119.60 +0.10 125.50 59.30 Logica ...... 125.10* +0.10 149.10 100.80 Shaftesbury ...... 441.40 +4.80 446.60 341.70 Amlin ...... 399.60* –0.50 437.60 350.80 Dixons Retail ...... 23.65 –0.34 39.75 23.11 London Stk Exchange ...... 689.00 +2.50 949.50 540.50 Shire ...... 1462.00* –11.00 1532.00 999.00 Anglo American ...... 2550.50 –9.50 3015.50 1846.50 Domino’s Pizza ...... 472.70 +15.20 481.10 273.10 Lonmin ...... 1693.00 +5.00 2198.00 1344.00 Smith & Nephew ...... 566.50 +1.00 700.50 525.50 Antofagasta ...... 1211.00* –3.00 1222.00 699.50 Drax ...... 392.30 +3.80 482.70 321.50 Man ...... 220.00 –1.70 373.60 199.60 Smiths ...... 1206.00 –6.00 1253.00 814.00 Aquarius Platinum ...... 330.90* +3.50 490.00 211.50 Dunelm ...... 383.50 +1.30 438.40 303.00 Marks & Spencer ...... 374.50 –2.30 412.70 321.90 ...... 447.00 +4.60 510.00 380.60 ...... 390.80* +4.10 416.40 134.40 ...... 377.90 –8.60 499.90 339.80 ...... 293.50* — 331.00 220.10 SOCO Intl ARM Holdings Easyjet Meggitt Spectris ...... 1005.00 –13.00 1043.00 653.00 Ashmore ...... 323.60 +0.40 336.80 215.00 Edinburgh Inv Tst ...... 423.20 +0.20 436.00 338.00 Melrose ...... 264.50* +1.80 275.10 160.00 ...... 1694.00 +5.00 1736.00 1001.00 Astrazeneca ...... 3311.50 –37.50 3389.50 2668.00 Electrocomponents ...... 232.90 –1.00 246.30 142.90 Mercantile IT ...... 952.50 –4.50 1002.00 822.50 Spirax-Sarco Eng ...... 734.00* +2.00 801.00 532.50 ...... 114.10 –1.40 125.90 87.35 ...... 452.70* –7.20 470.70 314.40 Spirent Comms ...... 138.10 +0.60 145.10 84.15 Atkins(Ws) EnQuest Michael Page Intl ...... 130.90 — 132.00 89.85 Autonomy Corp ...... 1767.00 –1.00 2012.00 1278.00 Essar Energy ...... 437.60 –6.50 475.90 358.50 Micro Focus ...... 365.20* +0.20 550.00 272.20 Sports Direct Intl Aveva ...... 1452.00 +23.00 1487.00 856.50 Eurasian Nat Res ...... 897.50* –1.50 1276.00 781.00 Millen & Copthorne ...... 527.50* –1.00 547.00 321.40 SSL Intl ...... 1158.00 +1.00 1190.00 596.50 Aviva ...... 398.90* +1.90 474.00 290.20 Euromoney Inst Inv ...... 590.00 +7.50 630.00 303.00 Misys ...... 286.70 +1.70 295.80 192.60 St James’s Place ...... 282.10 +1.60 296.90 203.40 Babcock International ...... 530.50 –17.00 660.50 489.00 Experian ...... 674.00 +5.00 683.00 516.50 Mitchells & Butlers ...... 300.00 +5.30 343.90 228.30 Stagecoach ...... 183.40 –0.10 204.90 137.00 BAE Systems ...... 337.10 +4.30 389.90 288.10 Ferrexpo ...... 292.40 –1.10 396.20 138.00 MITIE ...... 196.90 –2.10 258.00 187.80 Standard Chartered ...... 1862.00* –12.00 1946.00 1366.50 Balfour Beatty ...... 265.30 –3.50 304.80 228.60 FirstGroup ...... 347.90 –1.60 443.90 331.20 Mondi ...... 504.00 +3.50 519.00 300.70 Standard Life ...... 227.70* +0.40 237.00 170.00 Barclays ...... 306.25 –0.45 394.25 253.40 Foreign & Col Inv Tst ...... 283.60 –0.60 297.20 248.70 Monks Inv Tst ...... 320.60 –0.30 324.00 265.00 SuperGrp ...... 1206.00 –15.00 1312.00 499.00 Barratt Development ...... 101.90 +0.30 184.92 89.10 Fresnillo ...... 1217.00 –1.00 1240.00 647.00 Morrison Wm ...... 299.70 –1.30 307.10 255.00 TalkTalk ...... 141.40 +0.40 147.10 106.60 BBA Aviation ...... 193.30* –0.50 220.00 145.90 G4S ...... 256.10* –0.30 285.70 217.70 Murray Intl Tst ...... 874.50 –7.00 907.50 720.00 ...... 446.30 +1.30 501.50 341.40 ...... 588.50 +5.00 897.50 510.00 .....502.00 –2.50 510.50 370.00 ...... 237.50 +1.50 258.60 155.86 Talvivaara Mining Bellway Genesis Emerging Mkts Fd National Express Tate & Lyle ...... 462.00 +0.40 509.00 388.00 Berkeley ...... 817.00 –2.00 949.50 735.00 GKN ...... 164.00* +1.00 172.60 100.40 National Grid ...... 548.50 +1.50 607.65 474.80 ...... 28.87 –0.12 46.34 24.29 BG ...... 1137.00 +20.50 1248.00 966.90 GlaxoSmithKline ...... 1259.00* –13.00 1347.00 1088.00 Next ...... 2169.00 –9.00 2360.00 1726.00 Taylor Wimpey ...... 2000.00* — 2346.00 1583.50 ...... 334.20 –2.50 339.80 236.60 ...... 338.50 –0.60 353.00 225.20 Telecity ...... 510.00 +3.50 542.50 311.30 BHP Billiton Great Portland Estates Northumbrian Water ...... 600.50 –1.50 605.00 448.50 BlackRock Mining ...... 623.00 –1.00 654.50 474.00 Greene King ...... 419.60 +2.20 484.00 372.50 Ocado Grp ...... 140.00 — 169.00 132.00 Templeton Emrg Mkts BlueBay ...... 339.40 –3.40 393.00 251.00 Halfords ...... 440.80 +3.20 562.50 339.00 Old Mutual ...... 137.90 +0.10 140.50 94.75 Tesco ...... 433.70 –2.20 454.90 368.40 Bluecrest Allblue GBP ...... 167.60 +1.00 169.00 144.10 Halma ...... 306.80 –2.50 320.50 207.00 Partygaming ...... 280.70 –5.60 339.70 205.80 Thomas Cook ...... 186.00* –2.20 277.20 172.30 Booker ...... 47.96 –0.32 49.99 37.50 Hammerson ...... 389.10* +1.90 460.30 332.20 Pearson ...... 994.50 –0.50 1069.00 751.50 Tomkins ...... 324.40 +0.20 325.70 155.00 BP ...... 405.10 –1.15 658.20 296.00 Hargreaves Lansdown ...... 440.00* — 478.00 259.40 Pennon ...... 585.00* –1.00 616.50 440.40 Travis Perkins ...... 823.50 –9.50 915.00 647.50 Brit Insurance ...... 1025.00 +7.00 1045.00 709.00 Hays ...... 108.70 –1.50 119.00 82.50 Persimmon ...... 398.90 +0.50 520.00 335.90 TUI Travel ...... 223.60* –1.20 313.90 189.20 British Airways ...... 239.70 –0.30 255.80 172.40 Henderson ...... 123.70* –6.50 157.80 112.10 Petrofac ...... 1397.00* +28.00 1446.00 900.00 Tullett Prebon ...... 395.00 –2.90 436.20 261.20 British Amer. Tob ...... 2393.00* +2.00 2418.50 1832.00 Heritage Oil ...... 312.10 +1.90 585.00 298.20 Petropavlovsk ...... 1209.00 +7.00 1370.00 834.00 Tullow Oil ...... 1265.00 –12.00 1375.00 979.50 British Empire Tst ...... 456.10 +0.70 467.90 338.50 Hikma Pharma ...... 702.00* –18.50 813.00 443.00 Phoenix Group ...... 680.00* –23.50 775.00 550.50 ...... 79.80 –0.85 84.90 69.10 ...... 464.50 +0.50 515.00 416.00 ...... 362.80* +1.80 371.10 299.60 ...... 257.00* –1.00 272.60 140.60 UK Commercial Prop British Land Hiscox Premier Farnell Ultra Electronics ...... 1660.00* +5.00 1774.00 1198.00 Britvic ...... 467.30 –2.40 518.00 340.00 Hochschild Mining ...... 423.50* +0.30 438.30 220.00 Premier Oil ...... 1654.00 +5.00 1703.00 984.00 ...... 241.10 +1.50 284.30 204.80 ...... 210.10 –0.80 326.30 208.30 ...... 820.00 +0.50 986.00 795.00 Unilever ...... 1790.00 –11.00 2024.00 1662.00 Brown(N.) Home Retail Provident Financial ...... 573.00 –0.50 620.00 429.00 BSkyB ...... 708.00 +4.50 732.00 521.00 Homeserve ...... 468.20 +2.90 502.00 435.40 Prudential ...... 609.00* –4.00 665.00 475.70 United Utilities BT ...... 139.10 +0.20 151.00 108.40 HSBC Hldgs ...... 664.00* — 766.80 595.20 PZ Cussons ...... 360.30* –6.50 382.70 226.50 Utd Business Media ...... 615.00* –9.50 656.50 408.30 Bunzl ...... 758.00 –7.50 784.50 613.50 Hunting ...... 626.50 –3.00 659.50 429.10 Qinetiq ...... 110.40 +1.50 179.10 103.50 Vedanta Resources ...... 2260.00 +21.00 2967.00 1795.00 Burberry ...... 945.50 –7.00 958.50 476.90 ICAP ...... 430.20 +1.10 478.30 291.70 Randgold Resources ...... 6560.00 +70.00 6620.00 3930.00 Victrex ...... 1227.00 –3.00 1320.00 726.50 Cable & Wire Comms ...... 60.00 –0.45 150.00 53.00 IG ...... 496.70* –0.60 532.00 291.00 Reckitt Benckiser ...... 3495.00* +37.00 3667.00 2938.00 Vodafone ...... 161.80 –0.50 164.95 126.50 Cable & Wire Wwide ...... 74.00 –2.30 94.80 60.05 Imagination Tech Gp ...... 356.40 –5.70 385.00 154.00 Reed Elsevier ...... 537.00 –0.50 566.00 454.60 Weir ...... 1371.00 –24.00 1459.00 635.00 Cairn Energy ...... 447.40 +2.40 497.60 306.80 IMI ...... 746.00* –11.00 786.00 410.00 Regus ...... 76.05* +0.30 125.50 64.05 Wellstream Hldgs ...... 776.00* –12.00 810.00 429.70 Caledonia Invs ...... 1625.00 +7.00 1759.00 1496.00 Imperial Tobacco...... 1943.00 +18.00 2159.00 1728.00 Renishaw ...... 1000.00* –11.00 1038.00 479.00 WH Smith ...... 447.80 –1.60 551.00 392.20 Capita ...... 757.50* –7.50 829.50 693.00 Inchcape ...... 297.60 +1.40 347.00 235.00 Rentokil Initial ...... 102.80 –0.10 140.20 91.15 ...... 1594.00 +1.00 1645.00 1141.00 ...... 131.50 +0.40 137.50 99.60 ...... 409.10 –0.10 439.40 263.30 ...... 229.70* –4.30 264.80 220.10 Whitbread Capital & Counties Informa Resolution William Hill ...... 174.50 –3.40 217.80 160.50 Capital Shopping Centres ...... 364.70 –2.10 559.00 300.10 Inmarsat ...... 695.50 –4.00 831.00 526.00 Rexam ...... 307.20* –3.10 348.80 253.40 ...... 460.50 –2.00 487.00 396.30 Carillion ...... 315.00* +0.10 361.90 263.90 Intercontl Hotels ...... 1114.00* –5.00 1244.00 762.50 Rightmove ...... 736.50 +11.50 796.50 456.90 Witan Inv Tst ...... 2487.00 –5.00 2937.00 1876.00 ...... 293.90 –0.10 308.30 233.50 ...... 3653.00 +0.50 4104.00 2435.00 Wolseley ...... 1489.00 +6.00 1742.00 1155.00 Carnival Intermediate Capital Rio Tinto ...... 420.90* +9.20 420.90 279.60 Catlin ...... 339.80* –0.10 394.60 303.20 Intertek ...... 1828.00 –15.00 1863.00 1136.00 RIT Capital Partners ...... 1119.00 –2.00 1215.00 940.00 Wood Group (John) Centamin Egypt ...... 185.30 –2.80 194.40 92.00 Intl Personal Fin ...... 260.60* –0.70 283.00 137.00 Rolls Royce ...... 575.00 –1.50 631.50 434.50 WPP ...... 707.50 –2.00 744.00 520.50 Centrica ...... 332.90 –2.20 347.00 236.30 Intl Power ...... 387.40 +2.70 396.80 248.20 Rotork ...... 1657.00* –10.00 1712.00 1088.00 Xstrata ...... 1209.00* +10.50 1344.50 815.00 Charter Intl ...... 657.50 +1.50 855.50 563.50 Invensys ...... 283.50 +1.80 350.30 224.90 Royal Bank Of Scot ...... 47.96 +0.46 58.95 28.25 Chemring ...... 2961.00 –6.00 3711.00 2363.00 Investec ...... 494.60 +1.10 565.00 411.50 Royal Dutch Shell A ...... 1893.50 +4.50 2068.50 1621.00 LONDON TOP 250 BY MARKET CAPITALISATION Close Bros ...... 716.00 +0.50 806.50 657.00 ITV ...... 56.70 –0.20 71.75 41.04 Royal Dutch Shell B ...... 1836.00 +5.00 1997.50 1550.00 * Ex-Dividend † Suspended Cobham ...... 231.90 –3.30 278.60 205.50 Jardine Lloyd Thompson...... 583.00* –8.00 604.50 420.70 RSA Insurance ...... 129.90* –0.60 142.00 114.10 COLT Group ...... 117.60 –3.20 144.20 107.70 Johnson Matthey ...... 1744.00 –6.00 1814.00 1302.00 SABMiller ...... 1991.00 –10.00 2090.00 1450.00 www.interactivedata.com

FTSE slides as weak drugmakers and Wall Street falls on poor banks offset rally by mining and oil firms unemployment figures

Weak drugmakers were the main Integrated oils were the best blue despite low trading volume, which drag for the blue chips, with chip performers, with BG Group raised questions about the rally’s THELONDON AstraZeneca and Shire down 1.1 and adding 1.8 per cent and Royal Dutch THENEW YORK stamina. 0.8 per cent, respectively, after Exane Shell ahead 0.2 per cent. Thursday’s volume was very light, BNP Paribas cut ratings for both in a Miners saw some support led by with 7.21 billion shares traded on the REPORT sector review. gold miner Randgold Resources up REPORT New York Stock Exchange, the The broker upgraded its stance on 1.1 per cent, while Xstrata and American Stock Exchange and the ritain’s leading share index GlaxoSmithKline but the stock still Vedanta Resources both took on 0.9 Nasdaq, far below last year’s estimat- ended slightly lower yesterday, fell one per cent on concerns that US per cent. S stocks fell yesterday after a ed daily average of 9.65 billion shares. rallying late on in tandem with and European regulators were set to Petrofac was the top blue chip riser, weak reading on the labour The Dow Jones industrial average Ba turnaround on Wall Street pull its controversial diabetes drug up 2.1 percent, while Amec gained 1.8 market dropped stocks through ended down 76.89 points, or 0.72 per after US existing home sales data, Avandia off the market. per cent. Ua key technical level, validating cent, at 10,662.42. The Standard & with firmer oils offset by weak drug- Banks were also big blue chip fall- Fund manager Schroders was also the worries of those who thought the Poor’s 500 Index finished down 9.45 makers and banks. ers, with Lloyds Banking Group and a blue chip riser, up 1.7 per cent recent rally was flimsy. points, or 0.83 per cent, at 1,124.83. By the close, the FTSE 100 was Barclays off one per cent and 0.3 per- helped by rumours of sector consoli- Major indexes were little changed The Nasdaq Composite Index fell 7.47 down 4.83 points or 0.1 per cent at cent, respectively, as uncertainty over dation moves. for most of the day before the S&P 500 points, or 0.32 per cent, at 2,327.08. 5,547.08, its third consecutive session what steps governments will need to Despite the recent retreat, the FTSE broke below 1,130, the high end of the Jobless claims unexpectedly rose in of losses since hitting its highest close take to sustain the economic recovery 100 remains 700 points higher than summer’s trading range. Investors the latest week, a sign the labour mar- since late April on Monday. weighed. its 2010 low in early July. had hoped that the level would hold ket still faces headwinds. certain medical andlifestylecertain conditions and pay higherrates becausepeoplewith have beenavailable UKsince1995 inthe of allannuitiespurchasedareenhanced. Towers Watson only 12 that report percent conditions, pensionconsultants health enhanced incomeasaresultoflifestyle and ing onretirementmay beeligiblefor an verg-showed half ofthose morethan that annual incomeof£6,350. a potof£100,000 would only give you an retirement, hadtumbledto a20-year low – key determinant ofannualincomepost- annuityrates,reported that whicharea itwas month, pension pots.Earlierthis pension annuityrates valueof eroding the A understand, writes sell youaproduct youdon’t Don’t letyourfinancialadviser CITYA gets youabetterincome,says With annuities,disclosing anillnessoften Get paidmorefor being unhealthy Simplicity isoften avirtue W pounded interest capitalfor each ontheir investors received 5.25percentnon-com- plan.This“kickout”meansthat the levelstarting itwasatwhenyou bought 100provided FTSE the isabove initial the date out”(i.e.matures)onacertain “kicks plan tions. Under options,the oneofthe lead to fairly complex calcula- cost-benefit optionsavailableunderstanding the can IFAs, participating through even just Deposit Plan15”, by offered Investec intimidatingly 100 labelled“FTSE Kick-Out man’s terms, a“kickoutplan”.Under the known asan“autocallable” – or, inlay- is ticularly popular inrecentmonths savings alotofuncertainty.” andthere’s ucts: investors littleoncash areearning conducivement isvery to prod- structured says: environ- Sophie Barnett “Thecurrent investment classes.Morgan Stanley’s onliquiditythan andexotic orinaccessible to safe focus ofcapitalrather return onthe fessional market, retailproductstend these forms. pro- madefor Butunlike the those ucts for private savers comeinavarietyof for professional investors, prod- structured getting you to product. buythe sheisreceivingacommissionfor whether your IFA rightquestions the –notleast, market youresearching the sothat canask advisors(IFA),financial itisworth volumes independent these soldthrough 45percentof £5.6bn in2005.Andwith into assetclasslast year, this upfrom Products.com savers sunknearly £14bn According toreturns. CompareStructured- tools disguisequitethese canoften average complexityucts markingisgrowing, the of loss ofcapital. tracking anindexandprotecting against by return promiseadefined cles that vate investors is,investment –that vehi- for productsfor aseriesofstructured pri- government bondyieldshasfed demand desire for safety sinking combinedwith exotic ways to preserve nest-egg. The their Enhanced orimpaired life annuities researchfromJust RetirementAlthough One kind of product that hasprovedOne kindofproductthat par- investmentAs with productsdesigned prod- retailstructured the But although .M. nation offallinginterest rates and past coupleofyears, acombi- with ment hasbecomeahottopic inthe DEQUATELY fundingyour retire- increasingly lookinginto more savings with are looming, those and aslowdown second-half ITH markets still directionless 24 SEPTEMBER 2010 Juliet Samuel dividend payments? why notbuysharesdirectly andreceive the investors willgoup, FTSE the really think investment goto provider. the Soif dividendsfromthe Andallthe inflation. nointerest,back, with unadjusted for maturity, you simply receive your capital relevantdate yearon the duringthe of hasabadweek onecatch. FTSE than Ifthe like agoodinvestment. ismore Butthere over years, mightseem nextfive this the years.time offive maturity –upto itsmaximumrunning beforeyear planhasbeenrunning its the and beaware suchproductsalways that onto you instead ofaddingto your costs), mission (many fee make willpassthe they to askyour IFA arereceivingacom- ifthey print, besure key isto fine understand the chance uponanoccasionalgooddeal.The corporate bond,asavvy investor might dividend yieldingstocks oragood high- littlebetter than ucts offer returns Still, awiderange although ofsuchprod- OCCASIONAL GOODDEALS need to ifyou tell provider the everything when itcomesto annuities,you really do atadisadvantage. Infact, tions putsthem condi- years disclosing poor health that peoplehave beentoldFurthermore, for likely to request enhancedannuities. seen asunhealthy less andaretherefore Advantage, says peopledon’tlike to that be retirement incomespecialists MGM Goodey, salesandmarketing director at annual incomeinretirement?Aston up whatisessentially ofgreater anoffer blood pressureanddiabetes. annuity. Thesecanincludesmoking,high for anenhancedorimpairedthem life ing mighthave qualify conditionsthat between retir- 55and65percentofthose 2008, Just Retirement estimates that whodonot. those er life expectancy than (such assmoking)statistically have ashort- If you think the FTSE islikely FTSE If you the to think goup So why dosofew peoplecurrently take General LifestyleBased onthe Survey Jessica Mead comfortable retirement. conditions. Itcould well leadto amore check-up anddisclosingallyour medical lifestyle. best ratesthe given your and health ities. Theyshouldbeableto helpyou get who specialisesinretirementand annu- adviser anindependentfinancial finding enhanced annuityrate itis worth then moneygoesto provider. the the Otherwise, your annuityguarantee out. periodhasrun ifyou diebefore can nameabeneficiary Depending onwhichannuityyou buy, you request anincomeenhancement. and highcholesterol, you willnotbeableto youthat have diabetes, highbloodpressure outfromyour doctor laterfind amonth your annuityatastandard rate andthen terms andratesthe Soifyou arefixed. buy exchanged your pensionpotfor anannuity, up before retiring.Onceyou have healthy, getting itisworth amedicalcheck- Retirement, says even that ifyou feel want to inincome. receive anuplift the FTSE. the unnecessarily complicated way ofbuying out ifyou arebeingsoldagooddeal,oran product.” isitpossibleto Only then work expected over growth lifetime the ofthe and factor initsannualdividendplus asabenchmark product, take FTSE the upsidepotential. aFTSE the Then,with protection you’re getting ondownside and fee,ing for inthat compare itagainst the Lowcock advises:“Lookatwhatyou’re pay- BestInvest’s therefore, efits, Adrian taken provider. by the Inweighing ben- the arebuyingincludesafee dealthey the risks.”defined datement payable with atadefined underlying measure- based onadefined return “We it’sadefined factthat like the CompareStructured-Products.com says: portfolio. IanLowes IFA ofthe site outvolatility valueofone’s smooth inthe overall investment strategy to, for example, ofan usingaproductaspart be worth arefully understood, risks these itmight productproviderof the goingbust. Once expose you to risk counterparty risk–the As a rule of thumb, it is worth getting itisworth a ofthumb, As arule If you you think mightbeentitledto an Nigel Barlow, headofresearchatJust Even so,investors shouldbeaware that Investment |PersonalFinance cost-benefit analysis. without athorough packaged product Don’t justbuyapre- (June 2010) nil guarentee &level paid monthlyinadvance, £100k fund,singlelife, BASED ON Source: MGM Advantage ANALYSIS l Lung cancer withradio &chemo Picture: GETTY pressure andhighcholesterol Lung cancerspread to bones Diabetes withretinopathy & nephropathy &neuropathy Diabetes withhighblood : Male, 65years, A grimlist:your annualincomegoesupthemore illyou are Smoker withhigh blood pressure radio &chemo account. an annuallimitof £5,100for additionsto the on theaccount.As withallcash ISAs, there is ment, butthere are nowithdrawal penalties customers have to move to another arrange- ing interest to 3per cent.After thefirstyear, their mainbank accountwithHalifax, bring- AER isavailable for thosewhoalready hold for thefirstyear. Anadditional0.2 percent with avariable interest rate of 2.8percent Halifax thisweek launchedanew cashISA CASH ISA OFFERS 2.8 PERCENTINTEREST not be.” our product portfolio whenother lendersmay are committed to enhancingandexpanding 18.9 percent.WillCurley of MBNAsaid:“We APR for additionalpurchases onthiscard is this balance for 12months.The standard per cent)andthento avoid paying interest on fee duringthefirst60days (inthiscase2.98 enables customers to transfer abalance for a card, dubbedtheMBNADualcard, similarly incurs anAPRof 16.8percent.The other after whichany additionaluseof thecard new purchases for thefirstthree months, for thefirst16months,whichalsoappliesto cent APRcharge onthetransferred balance fee duringthefirst60days. There isa0per transfer abalance for a2.9 percenthandling Balance Transfer card, allows customers to other cards. The first, calledtheMBNA who have racked upexpensive balances on launched two new cards targeting customers about credit card debt, theMBNAhas Even asR3reports highlevels of concern ...AS NEWCREDIT CARDS ARELAUNCHED financial stability. loans. This canleadto years of worries about graduating to amortgage, credit cards and of adultlife, startingwithastudentloanand says: “This shows how debt hasbecomeafact source of unease.R3's President, Steven Law cent citingthisparticularform of debt asa about other kindsof debt, withonly39per ious abouttheircredit card balances than ried group, Londoners were generally lessanx- credit card debt. Despite beingthemostwor- with thetop concernamongthisthird being carefree: onlyathird are anxiousaboutdebt, Residents of eastern Englandwere themost were uneasy aboutloansandmortgages. at 32percent,and19 percentof thoseasked worry at 51percent,followed by overdrafts credit card debt isthesource of thegreatest cent admitted beingconcerned.Nationwide, levels. Londoners are mostaffected: 49 per the UKare anxiousabouttheirpersonaldebt research showing that 40percentof adultsin R3, aninsolvency trade body, has conducted LONDONERS WORRY ABOUTDEBT... BY JULIETSAMUEL FINANCE NEWS PERSONAL Smoker Healthy Annual income £7,127.88 £7,626.12 £7,693.12 £8,379.36 £9,466.68 £10,782.60 £15,454.20 21 22 In association with CITYA.M. 24 SEPTEMBER 2010 City Focus | Entrepreneur FIRING Q& A A fresh take on fund managing How do I fire someone Q.and stay within the law? Letting someone go can be a bit of a Alan Miller started a firm to try legal minefield, made more complicat- A.ed by the distinctions between differ- out his own unusual investment ent types of dismissal and the various processes that apply. To put it simply, there are strategy, writes Kathleen Brooks five reasons deemed fair cause for dismissal: capability, conduct, retirement, redundancy or E MIGHT not look like your typical a situation where it would be illegal for the rebel, but Alan Miller is one through Miller invented his employee to continue to work, such as a driver and through. First he railed against own “actively passive” losing her license. HBritish divorce law and, since last way to manage Each of these causes demands different year, he’s turned his sights to the wealth money. actions on the part of the employer, with management industry. redundancy deemed distinct from firing and He launched SCM Private in mid-2009 Picture: therefore requiring its own special procedures. after he became frustrated with the way his Micha Theiner But for all of them, Charlotte Pickering, an personal money had been managed during /City A.M. employment specialist at Ely Place Chambers, the credit crunch. He decided to ditch fund says: “The clear focus is on the need for managers and set up his own business, with employers to give employees sufficient notice his wife Gina Miller, to manage his money and evidence of the alleged poor performance.” and that of other wealthy individuals. Fulfilling this requirement means that the Unlike other money managers he uses employer must be sure to conduct a series of what he calls an “actively passive” invest- meetings and give the employee opportunities ment strategy. Although he decides what to to appeal. But each circumstance puts slightly invest in, he only uses exchange-traded bespoke fund management system just to the House of Lords. He eventually lost different obligations on the employer, so it is funds (ETFs) to execute his investment deci- doesn’t work,” says Miller. “The manager the case. worth looking up detailed descriptions of the sions. What shocked me about meeting will always drop some balls.” But having a high profile never upset necessary procedures before beginning. Good Miller is just how animated he is. His pas- Although Miller had family connections him: “I do what I believe in whether it’s in sources for this information include the sion is investing and sitting in his office in the City (his great uncle was the chair- my personal life or in investment.” And he Advisory, Conciliation and Arbitration Service near Sloane Square he is like a child talking man of Smith Bank, the forerunner of is determined to keep doing what he loves: (ACAS) and the Department for Business, about a new toy: “We have low costs so we Merrill Lynch in London) he didn’t choose “I love the intellectual challenge,” he says. Innovation and Skills (BIS) websites. don’t have any pressure from outside the easy route: “I always wanted to join the And this is a business he wants to build up In very serious cases of misconduct employ- shareholders and we share the same portfo- City but I didn’t want to use my family con- for generations: “We’re not going to sell it – ers are entitled to dismiss the employee with- lio as our clients and pay exactly the same nections. I wanted to do it my way.” we’re lucky we don’t need the cash.” out notice. But Pickering warns that: “If you fees as they do. We don’t get a special dis- In 1986 he answered an advert in the dismiss an employee without notice – that is, count just because we manage the money.” Evening Standard: Hermes was looking for CV | ALAN MILLER not paying them for their notice period – it can Miller’s association with fund manage- an investment analyst. He got the job and amount to a claim of wrongful dismissal if the ment goes back 19 years. He helped set up so began Miller’s long career in the fund Age: 46 but I have a Ferrari.” conduct did not in fact amount to gross mis- New Star Asset Management, now part of management industry, including stints at conduct. Gross misconduct can be very difficult Henderson Group, with John Duffield in Gartmore, Jupiter and then New Star. Studied: Accountancy at Reading: “I never got into to define but the first place to look is the 2001, where he was in charge of the New It has not been plain sailing for Miller. He Birmingham books. I prefer films.” employment contract, which often sets out Star Hedge Fund. His record was impecca- garnered media attention in 2005 when he Lives: London with his wife and Favourite film: “North by examples, such as drinking at work.” Trevor ble, returning 17.5 per cent per annum dur- challenged the High Court’s decision that Bettany, a partner at Speechly Bircham, says it ing 10 years of management. However, ordered him to pay his ex-wife £5m three children Northwest, by Alfred is particularly important to adhere to the cor- Miller only puts 10 per cent of his success although they had been married for less Car you drive: “I mostly walk, Hitchcock.” rect procedures when dealing with anyone down to his role as fund manager. “A than three years. The case went all the way with a “protected characteristic” such as a pregnant woman. They have stronger grounds to accuse you of wrongful dismissal. He also stresses that you should go back to the con- tract you have with the employee to ensure that you have complied with everything you Outsourcing is not set out originally. Bettany says: “If you’ve said you will issue a formal written notice, make sure you print off the letter – don’t just send an email. You leave yourself open to criticism.” just for large firms Q.What is best practice? Mike Emmott, employee relations offi- For many small businesses, it can make sense cer at the Chartered Institute of A.Personnel says there are plenty of to move costs abroad, says Donata Huggins areas of best practice to consider: “Telling them face-to-face would be a start – not by ONSUMERS are used to reading of being stolen given China’s spotty record email or text.” Offering the employee plenty of “made in China” on everything on intellectual property. But with due dili- opportunity to discuss the situation with you under the sun. After all, with every gence and by using trusted providers, he and other employees will help ensure they Cbusiness in need of cutting costs, thinks it is worth the gamble. He takes pre- understand why they are being let go. outsourcing looks ever more appealing. cautions by ensuring that all the design Emmott also stresses the importance of “sur- But, contrary to what you might think, this work is completed in the UK. Another vivor care” – that is considering those employ- does not just apply to large corporates. The worthwhile precaution that entrepreneur- ees who are not being let go in the case of cost savings for small businesses can also ial inventors can take is to divide the man- redundancy. He says: “It is important that peo- be huge, allowing entrepreneurs to under- ufacture of the parts between factories. ple who are staying on are offered a believable cut their rivals’ prices and revolutionising “Just don’t tell each factory where the story so they don’t panic and fear for their jobs. the marketplace. But can those entrepre- other one is!” says Shehan. It is also important to handle the process of neurs who have invented a niche product But this might not work for everyone. the redundancy well since gossiping amongst benefit from the advantages of outsourcing Tanya Ewing, owner and inventor of the survivors can breed bad blood. Particularly without putting their idea at risk of theft? Ewgeco, a manufacturer of devices that if they believe that the selection process has Mark Shehan, the owner and inventor of measure energy consumption, says out- been unfair.” Squeezeopen packaging, a new London- sourcing does not make sense for small- Donata based packaging firm, says it can be done. scale firms. She says: “Once you have Huggins He took his recent invention to China for factored in the opportunity cost, it is just manufacture, reducing initial production not worth it for small businesses. Instead of costs from £200,000 to £80,000. He says the spending their time managing foreign out- cost of tools and labour in the UK led him sourcing, they should focus on their cus- to consider outsourcing. “The comparative tomer base. When there’s a problem I can Moving production cheap without requiring supervision, send- cost of flying out to China, hiring a car and sort it out straight away by driving to the abroad can cut ing production thousands of miles overseas a translator is nothing compared to the sav- factory – it’s an hour down the road!” costs but could could bring huge savings. This will not ings you can make.” And these low costs So as with every business decision, out- take up your time make sense for everyone but small business are essential in his industry: “Packaging sourcing is a matter of costs versus owners should not assume that outsourc- has to be cheap to be successful,” he says. benefits. If the service you need is not Picture: REUTERS ing is only for large conglomerates. It does Shehan is aware that his design is at risk overly specialised and can be bought on the no harm to consider all the options.

24 CITYA.M. 24 SEPTEMBER 2010 Living | London More than Voho, darling: Vauxhall is in for an overhaul The St. George Wharf Tower is the first sign of regeneration, says Donata Huggins OLD SOUTH LAMBETH ROAD Price: £895,000 ANDWICHED between the South managing director of the project, makes no Laid out over four floors, this house has three bed- Bank and the Battersea waterfront, it secret that he is aiming for the world mar- was never going to be long before ket. Tonnes of Chinese granite have been rooms, a reception room, large kitchen-dining room, Vauxhall took off. Until now imported for the interiors and the apart- utility room, bathroom and front and back gardens. S Contact: 020 7735 9510 Vauxhall has traded on two cards: “Voho” – ments’ lightening, heating and blinds can Gayer Soho – and housing London’s politi- be operated remotely from anywhere in the www.danielcobb.co.uk cos. However, this week’s launch of St world via a smartphone. So will the new George Wharf, more commonly known residents have been hoodwinked? Is the simply as The Tower, is a sign that a more Tower a diamond in the rough? well-heeled class is moving in. Despite the The political class certainly do not think lack of an official price list the current ask- so. Vauxhall is already home to Alistair ing price for a three bedroom flat in the Darling, Ed Balls, John Major, and Charles ST. GEORGE WHARF Tower is £1,375,000 (see right) – a far cry Kennedy to name but a few. The proximity Price: on application from the going rate for the rest of the area, to Westminster and *cough* MI6 no doubt Go for the three bedroom, three balcony averaging around £500,000 for a three bed- enticed them. Indeed, it is a little known room house. Savvy investors should get in fact that Kennington has locations wired variety, quoted at £1,375,000. on the trend and buy in Vauxhall before for the parliamentary division bell. The Contact: 020 7223 7574 the prices join the rest of central London. new US Embassy is being built nearby www.cluttons.com As Mark Hutton, manager of Douglas & which will breed more diplomatic action. Gordon’s Vauxhall office, says: “It’s an area The gay community would baulk at any VAUXHALL | of London undergoing gentrification, so suggestion that Vauxhall does not have any- NEED TO KNOW buying a property in Vauxhall would be a thing to offer. The area’s gay credentials very good investment. Not least for its cen- date back to the 1800s. The Royal Vauxhall TUBES: Kennington, Oval (Northern line), Pimlico and tral location and proximity to The Thames.” Tavern is London’s oldest known gay bar. Vauxhall (Victoria line) are all in between zones 1 and 2. The Tower is going to be a big deal. It is The pioneering district also housed OVERLAND TRAINS: Battersea Park and Wandsworth 181-meters high and will soon be carved London’s underground movement in the Road are on a line running from Peckham Rye to Victoria. into our minds as a feature of the London 1990s. Now established venues such as SCHOOLS: Most of central London’s top independent schools skyline like the Gherkin and the OXO Area, Barcode, Crash and Fire draw in the are within walking distance, including Westminster, City of Tower. Sitting on the Thames-side, the pink pound. London, St. Paul’s Girls and Boys schools. developers had to battle with the previous There are traditional attractions too: government to offer the panoramic view Fentiman Road and Hayford Avenue are COUNCIL TAX: Slightly below the national average. The top over Westminster Palace. It is so good that already hotspots. St. Peter’s Church at the rate is currently £2470.22. apartment prices rise by £10,000 for every Vauxhall end of Kennington Lane was CRIME: Below the national average. floor you go up. designed by John Loughborough Pearson, RESTAURANTS: The traditional French La Toulouse Lautrec Some have speculated that the only way the architect who designed Rochester THE VAT HOUSE brasserie is critically acclaimed. American-South Asian fusion the developers are going to lure in the Cathedral. A strong Portuguese communi- Price: £595,000 On the second floor of a converted vinegar factory, restaurant, Chino Latino, is local and has won a number of wealthy punters is to pray on foreigners, ty means there are plenty of good tapas awards. people they might be able to fool into bars. And with plenty of foreign diplomats this two bedroom apartment has high ceilings. Contact: 020 7704 5000 ENTERTAINMENT: The Oval cricket club and the comedy thinking that Kennington and Kensington entering the area, prices should rise, mak- at the Fentimans Arms. are the same thing. Mark Griffiths, the ing it a good investment if you act fast. www.foxtons.co.uk A VIEW GREENWICH CREEKSIDE TO THRILL!

Actual view from Adagio Apartments

Greenwich Means Time…

...Time to buy now! • Transport links aplenty • Terrific specification • Time to live your life Prices from £240,000*

Greenwich Creekside Sales Centre: 133 Creek Road, Greenwich SE8 3BU Opening times Monday - Saturday 10am - 6pm A development by:

Selling Agents: 0800 883 8627 or (out of hours) 0800 032 0077 www.telfordhomes.plc.uk

*Prices correct at the time of going to press. Computer generated image of Adagio Apartments and smaller images depict typical Telford Homes showhome interiors. THE PENTHOUSE COLLECTION HIGHBURY SQUARE LONDON N5

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2 & 3 bedroom penthouses from £775,000** Call 0845 262 6000 for an appointment to view www.highburysquare.com Marketing Suite & Show Apartments open Mon to Fri 10am - 6pm, Sat & Sun 10am - 2pm

*Yet to be completed. **Price correct at time of going to print. †Source TFL. CITYA.M. 24 SEPTEMBER 2010 Living | Rentals/Overseas 27 It’s a landlord’s market for hungry Londoners

agent, has seen doubling in rental clients Renters need to be savvy to over the past year. And lettings agent Tony Lam of LDG, a West End estate agent, says: survive, says Zoe Strimpel “I have been working in the West End area for eight years and this is the busiest it has ever been. Factors that have made this year HE period of fear, uncertainty and unique include the pent-up demand follow- gone are the days when tenants will stump properties, you’ll need to look your best. Be stagnation in the aftermath of ing the downturn; weak sterling attracting up lots of money for little in return. Make punctual, dress smartly, don’t smoke. The Lehman Brothers’ collapse is well wealthy overseas students, and a desire for sure the flat will be properly furnished estate agent works for the landlord and will Tand truly behind us – if you’re look- flexibility. Bankers in particular can be when you move in. Don’t be afraid to ask ultimately sway their choice if there are ing at the rentals market, that is. Prices in posted around the globe at a moment’s for things: for example, a fresh lick of paint several offers. central London are at levels not seen since notice, so renting makes sense.” can often be added as part of the package. If you’re an owner thinking of letting, before the meltdown, according to proper- Other factors include the decrease in the Choose a good estate agent. Make sure remember that people have high stan- ty services firm LSL. Rents in London rose number of “accidental landlords” – those- they have a nice office, articulate staff dards. To get the best out of your property’s by 2 per cent during August and the aver- who ended up renting their properties and – preferably – recommendations. price potential, Ikea won’t cut it. “You’ve age charge per month is now a steep £961, instead of selling when the market crashed. Know your rights, too: the legalities of tak- got to be prepared to spend some money, according to LSL. A recent survey by the Now that they’re selling again, rental stock ing up a rental property can be found even if you think you’ve got the loveliest Royal Institution of Chartered Surveyors is down. Demand from first-time buyers online: the ARLA (Association of Rental flat in the world,” says Lam. Finally, employ found that 26 per cent of surveyors were priced off the property ladder is a factor Lettings Agents) website, www.arla.co.uk, is a well-regarded local landlord rather than a reporting an increase in demand for rental too. a good place to start. generalist, because they will be able to brief property. What’s a tenant to do? Join the ranks of And remember, with more than one you best on what the local standards are for Jo Eccles, of Sourcing Property, a buying the savvy, of course. Prices are high, but offer likely to be on the table for desirable your target market. EYE ON | BRAZIL Where the cleverest of sun-seekers are heading

N 2012, Brazil will host the World Cup entered a new phase of growth, investment and in 2016, the Olympics. The north- there has never looked so good. As Charl eastern city of Natal, where some of the Ackerman, of estate agents Aylesford Igames will be hosted, is to complete the International, puts it: “Why wouldn’t you first phase of the world’s sixth biggest air- invest in Brazil?” port in 2012, making direct flights to Predicted huge returns are driving com- London possible. Known as the city of sun, panies like Aylesford into the market, Natal has 360 days of sun a year, with an where money is being ploughed into beau- average temperature of 28 degrees. tiful seaside developments mainly in the Then there’s Brazil’s GDP, which grew an north-east that are often better and – for impressive 2.7 per cent in the first quarter now – cheaper than those of the Caribbean. of this year and 1.2 in the second, exceed- Currently less than 15 per cent of the ing the forecast 0.6 per cent. It has a low property market is mortgaged and as budget deficit too, making it one of the things stand, home loans for foreign buyers most stable countries in Latin America, and are not to be had. On the plus side, this has is the world’s largest exporter of orange made the market stable. On the downside, juice, beef, sugar and coffee and a leading it limits your choice to developments exporter of aircraft, iron ore and footwear. where you enter a rental pool, and buying In short, the Brazilian economy is boom- homes outright. This is set to change, ing – GDP is forecast to grow by 7.1 percent though, with local developers lobbying Brazil is set to this year according to the IMF – and the hard for ready loans. Brazil’s property mar- become a property market is set to join its trajectory. ket needs foreign investment to grow and property hotspot. Brazil’s charms as a holiday destination given that the country is realising this, it Picture: SXC are well-known, but since the country has won’t be long until it takes off. ZS

All photography shown is of Kitchener House, THE ACADEMY at The Academy, Woolwich. YOUR PIECE OF HISTORY KITCHENER HOUSE & FARADAY HOUSE A UNIQUE RANGE OF 2 BED APARTMENTS IN HISTORIC SETTINGS SPACIOUS 2 BEDS FROM £260,000 WWW.THEACADEMY-WOOLWICH.COM BORN 1741. REBORN 2008. WOOLWICH COMMON, LONDON SE18 4JJ ENQUIRIES 020 8856 0034 28 Living | The Knowledge CITYA.M. 24 SEPTEMBER 2009

FOCUS ON: EPSOM, SURREY BY JESSICA MEAD 13 COURT FARM AVENUE Price: £379,950 ELEMENTS This three-bed semi- Price: From £294,995 detached family home for a two bed terrace has plenty of space and Constructed on a for- backs onto the local mer hospital site, this playing fields. There are development consists also two reception of 322 two, three and rooms, conservatory, four-bed homes. There and an attached garage are private rear gar- but there is ample off- dens while some prop- street parking. The erties also have property has a south- balconies and floor-to- facing back garden. The ceiling windows. house is close to West Contact: Crest Nicholson Ewell mainline station. on 0870 751 3958, Contact: Your Move on www.crestnicholson. 020 8974 1355, com/elements www.your-move.co.uk

NEED TO KNOW | EPSOM

Commuting: 35 minutes by train into either Victoria Restaurants & Pubs: The Derby Arms on Epsom EBBISHAM LODGE or Waterloo, with approximately six trains an hour at Downs is a gastropub with a view of the racecourse. Price: £1,199,000 peak times. It is close to Junction 9 of the M25 and is Restaurant at Chalk Lane Hotel is located at the foot Set in the heart of also well located for both Heathrow and Gatwick air- of the Epsom Downs and has had a 2 AA Rosette for Epsom, this spacious Grade II-listed house ports. the past eight years. It serves modern European has plenty of period fea- food. The Ladas is a welcoming, traditional pub with tures. It has five bed- Schools: Wallace Fields Junior School is a strong pri- a wide selection of real ale. In the centre of Epsom, rooms, a heated mary school, as is independent prep school the Railway Guard is small and friendly and occasion- swimming pool, a large Kingswood House. Public school Epsom College pro- ally hosts live music. attic and two garages. vides co-educational education for those aged 13 to There are two areas of 18. Rosebery School for Girls is an all girls secondary, Parks and Leisure: The Epsom Derby is held nearby garden, one with a large which has high academic achievement. in June. Outside the town are Horton Country Park, terrace. Contact: Epsom Common and the RAC Country Club. Theme Hamptons International Crime: Statistics indicate that Epsom is much safer park Chessington World of Adventures is a few kilo- on 01372 734950, than the national average. metres away. www.hamptons.co.uk

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Eg^XZhXdggZXiVii^bZd[\d^c\idegZhh#E]did\gVe]niV`ZcVi:aZbZcih# IgVkZai^bZhVeegdm^bViZ#”K^aaZgdnVcY7dX]WVi]gddbhj^iZhid)WZYgddb]dbZhdcan# 30 Living | The Knowledge CITYA.M. 24 SEPTEMBER 2010 SELLING PROPERTY NEWS BY JESSICA MEAD property. For very prime properties, people theme is that there is a real Q A are prepared to pay over the odds but there shortage of good rental & are plenty of houses where people need to properties. At the same time, BRUSSELS PENTHOUSES free up the capital and are prepared to sell there is an increase in demand so people are International developer for a good price. They are more open to fighting over the best on offer. Consequently, Thornsett Group yesterday offers, particularly if they need to sell quick- people are prepared to pay more for high launched six duplex and Russell Hunt ly. Prospective buyers should see the asking quality rental properties. MANAGING DIRECTOR, price as merely an asking price. You can I think it is a good time to invest but you triplex penthouses at Leopold PROPERTY HUNT start haggling from there and in this climate, do have to buy somewhere where the fig- Village in the heart of Brussels’ there is certainly room to negotiate. For ures make sense so don’t rush into anything. European district and with Dear Russell, I have heard that stock levels to improve, you would need to You should be looking for a minimum rental stunning views over the city. London property stock levels are see interest rates going up. yield of 4.5 per cent and preferably above 5 The penthouses cost from Q.still low. Will this change? per cent. This requires doing your research €750,000 excluding taxes. Dear Russell, with such high rental about what similar properties in the area Contact: +32 2 280 3034, You would normally expect stock lev- demand, is now a good time to have rented out for. www.leopoldvillage.com. els to be higher in late September Q.buy-to-let? A.than they currently are but people Russell Hunt is managing director of have been put off selling by low rates. For Everybody I talk to, whether it is in Property Hunt, a search agent for London SAVILLS’ AUCTION SUCCESS example, in Kensington & Chelsea you get a Hammersmith, Kensington & and the Home Counties. Savills’ latest residential auc- much better return by holding on to your A.Chelsea or in Fulham, the common www.property-hunt.co.uk tion raised £19.5m with a suc- cess rate of 81 per cent, as optimism returns to the prop- erty market. A number of lots CURRENT MORTGAGE DEALS BY JESSICA MEAD sold for in excess of their guide prices, including a flat in LENDER FIXED/FLEXIBLE RATE UNTIL STANDARD RATE APR MAXIMUM LOAN a mansion block in Queen’s (PER CENT) (PER CENT) (PER CENT) TO VALUE (PER CENT) Club Gardens. The next event will be held on 25 October. First Direct Flexible 2.19 2 years 3.69 3.5 65 www.savills.co.uk. HSBC Flexible 2.19 Term 2.19 2.2 60 NatWest Flexible 2.19 To Nov 2012 4 4 60 REMOTE COTTAGE FOR SALE A peaceful slice of the ING Direct Flexible 2.29 2 years 3.5 3.5 60 Somerset countryside is up for Yorkshire BS Flexible 2.39 To Nov 2012 4.99 4.7 60 sale at Carter Jonas’ auction Principality BS Fixed 2.74 To Nov 2012 4.99 4.9 75 on 6 October in Bath. The three-bed cottage is only Santander Fixed 2.75 To Nov 2012 4.2 4.2 60 reachable by foot and has a ING Direct Fixed 2.79 To Nov 2012 3.5 3.5 60 good-sized garden It is in need of some modernisation and Mansfield BS Fixed 3.49 3 years 5.59 5.2 75 the guide price is £150,000 to Post Office Fixed 3.65 To Sep 2013 3.49 3.7 75 £200,000. Contact Carter Source: MoneySupermarket.com Jonas on 01749 677667. "/7 ,/.$/.% Luxury Canal Side Living WWWAQUAVISTACOUK

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LAUNCHES Saturday 9th October 10am to 5pm

For more information or to book an appointment to view

The computer generated image is drawn from plan and is  indicative only of how the fi nished development will appear www.aquavista.co.uk Sales and Marketing suite open thereafter, Thursday to Monday (closed Tuesday & Wednesday), 10am – 5pm

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Show supporsupportedted by SKYLINE LIVING EAST TOWER LAUNCHING 25TH SEPTEMBER 2010

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Images for illustrative purposes only CHAMONIX WHEN 33 YOU’RE NOT SKIING | Arts IN MONDAY’S Lifestyle TRAVEL SECTION Globetrotting the Hollywood way Julia Roberts’ latest star vehicle has beautiful scenery, but it hasn’t much to do with real life Film EAT, PRAY, LOVE Cert: 12A hhiii

WELL IT’S certainly handsome, but then it’d be difficult for a film primarily set in Italy, India and Bali, and with such lumi- nously attractive stars as Julia Roberts and Javier Bardem, not to be. Based on mem- oirs of bestselling author Elizabeth Gilbert, it stars Roberts as Liz, a New York-based writer whose marriage is on the rocks. So she divorces hubby, strikes up a relation- ship with a younger actor but doesn’t find fulfilment there either. Clearly, it’s time to go on a search for some spiritual equilibri- um in picturesque surroundings, so off Liz trots to Italy, then India and finally Bali – she eats a lot in Rome, prays and meditates a bit in an Indian ashram and gets down to some loving with Javier Bardem’s brawny divorcee in beautiful Bali. So, as I said, it’s handsome, and never Above, Javier Bardem armoured car robbers than any other more so than when focusing on the gor- and Julia Roberts in place in the world. As well as directing, NOW SHOWING | SIX OF THE BEST geous dishes of Italian food. Roberts is Eat, Pray, Love. Affleck stars as Doug MacRay, a career good in a part she fits like a glove, adding criminal who begins a relationship with a MUSICAL Les Miserables The Barbican is THEATRE Krapp’s Last Tape Sir Michael a layer of depth that is absent from the former hostage of his, bank manager hosting the 25th anniversary production of Gambon takes to the stage alone in Samuel script. But hell’s bells, this is horribly Claire Keesey (English actress Rebecca one of the most successful stage musicals in Beckett’s devastating monologue about old indulgent stuff. From its simplistic, post- Hall). She’s oblivious that he’s the guy history, still running in the West End. An age, failure and the dying of the light, as an card views of foreign countries to its duff, who robbed her bank and kidnapped her. opportunity to take to the barricades once old man listening back to taped recordings of patronising philosophising, this is boring, Increasingly looking for a way out of the more in the auditorium which hosted his younger self. badly written and hugely annoying. About criminal life, MacRay finds that leaving the original show back in 1986. as authentic as a Disney cartoon, it’s like Charlestown and the life he’s led there FILM I’m Still Here So Joaquin Phoenix’s staring at a huge cloud of smug for two isn’t as easy as he might have hoped. He THEATRE Yes Prime Minister Henry journey into the realms of the unhinged, by hours and being expected to feel better as finds himself in a stranglehold of surveil- Goodman (as Sir Humphrey) and way of an attempt at a hip hop career, a result. You won’t. lance and intimidation, with his every David Haig (right, as Jim Hacker) turned out to be a hoax. No mat- move watched by the FBI (in the form of star in the stage version of the ter. His mate Casey Affleck’s Mad Men’s Jon Hamm), while also under fondly-remembered political film is as remarkably weird a THE TOWN the grip of Pete Postlethwaite’s sinister sitcom, which has opened at thing to have emerged Cert: 15 crimelord. the Duchess Theatre. from Hollywood in years, Of course, despite its gritty subject mat- and should be cher- hhhii ter The Town is a polished Hollywood pic- EXHIBITION Treasures of ished. ture. Hunky Affleck doesn’t really Budapest The Royal BEN AFFLECK’S promising foray into convince as a local thug with a late-bloom- Academy has brought over ART Baghdad Former directing continues with this crime ing heart-of-gold, while Hall’s doe-eyed masterpieces from the col- Turner Prize-winner thriller, which, though essentially a nuts Keesey also seems somewhat one-dimen- lection of the Museum of Jeremy Deller has mount- and bolts crime drama, is put together so sional. Whilst The Town doesn’t have the Fine Art in the Hugarian ed one of the most forceful well that any hang-ups about its over- grit or the complexity of The Wire, to capital, and it’s a real artistic responses to the familiarity can comfortably be put on which it seems in part indebted, Affleck treasure trove. Picasso, Middle Eastern conflict with hold. still delivers a compelling film that Schiele, Goya, Leonardo, the twisted metal carcass of a The ‘Town’ in question is Charlestown, achieves a precise balance between sympa- Monet, El Greco and even car destroyed by a bomb, on dis- Boston, which apparently holds the acco- thetic character development and white- our own Constable are all play amid the war machines of lade of producing more bank and knuckle action. A clear success. represented. the Imperial War Museum. OUT THIS WEEKEND PREVIEWS

FILM DVD MUSIC GAMES

THE HOLE Teenage horror hokum as a couple of kids ROBIN HOOD Russell Crowe stars in this leaden ver- MANIC STREET PREACHERS The indie veterans’ F1 2010 (PC, PS3, X360) Take on Hamilton, discover a spooky hatch in the basement. sion of the folk tale. new album is called Postcards from a Young Man. Webber, Button et al.

WORLD’S GREATEST DAD This caustic black comedy THE GHOST Roman Polanski’s adaptation of Thomas SEAL Just what we needed. A new record from SID MEIER’S CIVILIZATION V (PC) Latest in the gives Robin Williams his best role in years Harris’s political thriller, with Ewam MacGregor. Heidi Klum’s soul man, called Seal 6: Commitment. strategy game series.

FROZEN So so thriller with a great premise: with WALL STREET COLLECTOR’S EDITION Rerelease in ORCHESTRAL MANOUVRES IN THE DARK This we DEAD RISING 2 (PS3, X360, PC) Action/survival hor- three skiers stuck on a chair lift, who will jump first? advance of the forthcoming, long-awaited sequel. do need. OMD return with History of Modern. ror game. Covers a few bases, then. 34 Lifestyle | Fashion CITYA.M. 24 SEPTEMBER 2010 The City boys offering a cut above

James Sleater, left, Timothy Barber meets and Ian Meiers, founders of Cad the ex-bankers who & the Dandy Picture: have turned tailoring Micha Theiner into a million-pound /City A.M. business opportunity

F YOU can find it in the medieval maze between Lombard Street and Cornhill, tailoring shop Cad & the Dandy is a Idelightful place to get yourself togged up. It mixes old-fashioned charm – an antique mahogany cutting table, an old leather sofa for those waiting to be meas- ured up, a Union Jack across one wall – with a modern attitude to contrast with the deferential service style of Savile Row. “We act with our customers as we would be if we were having a pint with them – we want to take out that intimida- OTHER AFFORDABLE OPTIONS tion factor,” says co-founder Iain Meiers. Expect cheery banter and maybe even a beer from Meiers and his business partner James Sleater as they tap your measure- A SUIT THAT FITS ments into a laptop. Relaxed it may seem, Founded by school friends from a market stall in but this is a young company that’s turned 2006, A Suit That Fits offers customised, tai- over £1.3m in the past year, and is lining lored suits at off the peg prices, from £150. up international expansion. Meiers and Sleater can certainly claim a www.aSuitThatFits.co.uk close kinship with their City customers, DRESS2KILL for they’re cut from the same professional One of the longer-running affordable suiting cloth (as it were). Meiers qualified as an accountant and spent three years work- companies, Dress2Kill has a membership ing in private equity at Barclays, while scheme enabling some discounts on its made- Sleater worked on the sales side at BNP to-measure suits, which start from £250. Paribas. Following redundancy in the www.dresstokill.com early days of the credit crisis, each decid- ed to set up a tailoring business – both move into affordable tailoring. HENRY HERBERT have family backgrounds relating to the “A tailored suit was always the ultimate The pair turned the major brand down A team of Henry Herbert tailors zip around trade – and after being introduced, decid- to carry on building their own – which is town on Vespas, going to clients to measure ed to go it together. The aim is to offer luxury but wasn’t attainable for many – where the stores in Shanghai come in, cap- Savile Row-quality suits at a fraction of italising both on the company’s manufac- them up. Bespoke suits take 8-10 weeks, and the price – their fully bespoke suits start we’re able to offer access to it” turing presence there and on the growing start from £595. www.henryherbert.com at £750. High volume, low margins and a Chinese interest in good tailoring. KING & ALLEN super-efficient business model are key, the government about training grants to Fittings are held in various London locations and so far, it’s working rather well. eventually open a bigger UK workshop. OPPORTUNITY From ad hoc fittings in rented office “We’re growing our workshop in China, “There’s a huge affinity with English (including The Counting House pub on Cornhill), spaces two years ago, they now have their and taking experienced Savile Row tailors brands out there as wealth and business with customised suits from £249 and hand-tai- flagship Square Mile shop, plus shared out to train people. It’s certainly not a culture grows,” Sleater says. “You see bill- lored ones from £499. www.kingandallen.co.uk space on Savile Row (with long-established case of throwing someone into a produc- boards there for supposed English brands tailors Chittleborough & Morgan) and a tion line – it’s highly-skilled work.” no one has heard of here, so there’s a mas- MOSS BROS Canary Wharf presence two days a week. In fact, the Chinese workshop they’ve sive opportunity to exploit.” The suit hire specialist launched a service called Most strikingly, they’ll be opening two taken over was formerly owned and run Not that that’s enough. The pair are Moss Bros Bespoke this summer, though it’s shops in Shanghai by the end of the year. by a Savile Row company. “The suits that looking at setting up an online, made-to- we produce now, 16 months ago were sell- measure shirt business, while a side oper- really more of a customisation service. QUALITY ing on Savile Row for £4,000 and we’re ation supplying the skills of their Measurements and personal choices of cloth Cad & the Dandy are hardly the only peo- selling them from £750,” says Sleater. workshops to put together suits for other and finishing details are recorded electronically ple offering more affordable tailoring – The pair have used their City-honed London tailoring houses is thriving too. at the Blomfield St store in the City, with suits other successful start-ups in a growing skills to bring efficiencies and up-to-date Which means someone may spend £2,000 market include A Suit That Fits and methods to an industry in which some of on a suit at a West End or City tailors ranging from £250 to £500. Henry Herbert [see box] – but they make a their more venerable competitors still which would have cost £800 from the peo- www.mossbros.co.uk strong case for the quality of their suits. conduct business by typewriter, and ple who actually made it. REISS The pair make no bones about the fact thereby cut costs. Their online set-up, “A tailored suit was always the ultimate that most are made in China (from British including a slick interactive website and thing, but wasn’t really attainable unless Also more of a customisation service, Reiss’s and Italian cloth) but say that this is for sophisticated system automating their you were seriously wealthy,” says Meier. new personal tailoring line includes 50 fabric the sake of quality as well as cost. orders, has won them an award for tech- “Good tailoring is actually in fashion now, options, various jacket and trouser styling “There simply isn’t the trade knowl- nological entrepreneurship and stirred and we’re able to offer access to it.” options, and costs between £550-£695. edge in this country now,” says Sleater, the interest of Moss Bros, which offered to Cad & the Dandy, 4 Castle Court, EC3V 9DL, pointing out that they have approached buy them as it planned its own recent www.cadandthedandy.co.uk. www.reissonline.com

as Londoners, the creative decisions dresses. Christopher Kane’s collection was that our designers unveiled this week described as “Princess Margaret on acid” – Spring/Summer 2011 are arguably the most important flurorescents met perforate leather, lace with regards to our wardrobe next and vinyl. season. Yet with the usual fashion l A tough-girl look. Todd Lynn had feeding frenzy in all forms of media, women in army-style, multi-dimensional promises a riot of fun it can be pretty difficult to pick out jackets of shimmering pale green, grey the key looks if you’re not an indus- and blue. They wore brutal-looking sky- try pro. So here are three big scraper heels. At Nicole Farhi, there were London looks to watch out for next see-through tops worn with butch Latex T’S as if the fashion industry has, this spring. skirts with a slouchy, side-pocket. See- September, burst out of the cocoon of l Shocks of colour. Burberry through midriffs were accompanied by recession, replacing dark drapery and added serious pizzaz to its sta- tough-talking patent-leather bustiers. FASHION Iminimalist monochrome with outra- ple neutrals with bright neon l Cowboys and Indians. With ironic geous shocks of colour and extraordinary in clutches, dresses and belts. panache, Ashish combined colour-shock WEEK materials. If this week’s shows were any- Expect turquoise, pink and with a Western look. His models wore flat DIGEST thing to go by, the high street next spring lime green on the shelves leather boots with McDonalds designs on ZOE will be a cocophany of pinks, turquoise, come spring. Giles pre- them, leather chaps with hot pink leop- sequins, feathers and cowgirl leather. sented clubbing-style ard-print and cow-hide dresses, baseball STRIMPEL Fashion week has moved on from mosaics of screaming hats draped in feathers and sweatshirts. It London to Milan, and thence to Paris. But neons in his jumpers and was tough, American, and very funny. CITY A.M. from 1 to 9 to solve this tricky Sudoku puzzle. Sudoku tricky this solve 9to 1to from numbers the all contains block 3x3 each and column row, each Place the from 1 numbers to 9 in each empty cell so that each SATELLITE & CABLE TERRESTRIAL   QUICK CROSSWORD 2867 52'(2 LAST ISSUE’S 3 . 3 ( 6,66< 1 &6 , $17 -2(< , 24 SEPTEMBER 2010 SOLUTIONS 5(%(/ BBC1 6.30pm 3 SPORTS SKY Ride Ocean Access Total 4am 2.30am show. fishing weekly The Lines. 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FOOTBALL TRADER BEN CLEMINSON HAS TEAMED UP WITH BETTORLOGIC TO BRING YOU THE CITY AM FOOTBALL TRADER ...the home of form Get ready for goal-fest at Eastlands tomorrow

MANCHESTER CITY

CHELSEA

TOMORROW – 12.45PM SKY SPORTS 1 CHELSEA are now a best-priced 4/5 with Paddy Power to claim back-to-back titles after comfortably winning their opening five fixtures. They look the most likely winners to me at this stage, but the season has barely started and they have faced very weak opposition so far. Manchester City, despite being fourth in the table, have made a slightly disappoint- ing start to what is a massive season for the club. They got back on track by beat- ing Wigan last weekend, but they would have expected much more than the one point they took from the games against Sunderland and Blackburn. Roberto Mancini’s side generally raise their game against the top opposition, John Terry clashes with Carlos Tevez during last season’s heated clash. Picture: ACTION IMAGES though, as their comfortable 3-0 win against Liverpool last month demonstrat- at Eastlands against the Big Four. There Malouda and Didier Drogba are also play- ed. They were the only side to do the dou- have also been a minimum of three goals ing with great confidence for the West ble against Chelsea last season and a win in all of Chelsea’s last four trips to top-six Londoners. tomorrow would give them something of opponents, while there were nine goals in I’m torn between recommending a first an Indian Sign over the champions. the two meetings between the sides last goalscorer bet on Tevez at 13/2 with City have only lost three of their past 24 season. Skybet and a 2-2 correct scoreline punt at home games and with Chelsea yet to face Chelsea were the joint-top away 16/1 with William Hill, but I’m going to a stiff test this season I won’t be rushing to goalscorers last term (35) and City conced- plump for the latter. It’s very difficult to snap up the 11/10 about an away win. At ed the most goals at home of anyone in split these two and we could be set for an 11/4, the home win actually makes some the top seven (20), so the stats suggest we absolute thriller. appeal, but I think a draw is more likely will see plenty of goals. Sporting Index and would advise backing that at 23/10 quote goals at 2.6-2.8 and I would suggest POINTERS... with Paddy Power. buying at 2.8. The total goals market is an interesting Carlos Tevez is on fire for City – 24 goals Match to be drawn at 23/10 with Paddy Power one in this game as there have been at in his last 28 games and three against 2-2 correct scoreline at 16/1 with William Hill least three goals in three of City’s last five Chelsea last season – while Florent Buy total match goals at 2.8 with Sporting Index

five visits there, including a 4-0 trashing double result. A repeat of that can be BOLTON last season. Bolton have improved under backed at 7/2 on Betdaq and I would Owen Coyle, although they did suffer a rather have a go at that and hope that disappointing Carling Cup defeat at his Coyle’s side can keep United at bay until MANCHESTER UNITED old club Burnley on Tuesday night. half-time. The problem for Wanderers is that they Sporting Index are quoting United as have lost their last eight at home against 1.3-1.5 supremacy favourites prior to the SUNDAY – 12.00PM ESPN the Big Four with six defeats to nil and six game, but I would suggest waiting to buy by at least two goals. United have also won until half-time, if the sides are level, at a LAST weekend’s match against Liverpool by two or more goals in four of their last lower price. We’ve seen time and time was a must-win for Manchester United eight away visits to bottom-half sides. again over the years how strong they are and they had Dimitar Berbatov to thank It’s difficult to see anything other than in the final third of matches and it would- for an inspired performance. In truth, a United win in this game, but I wouldn’t n’t surprise me if they went on to win by they really shouldn’t have let Liverpool want to be steaming in at 8/15. They’ve two goals having been level at the interval. back into the game but Berbatov had drawn both their away fixtures so far this enough left in the locker to claim the vital season and have generally been slow POINTERS... winner. starters on their travels. They were level at Sunday’s trip to the Reebok Stadium the break in 10 of their 19 away games Draw HT / Man United FT at 7/2 on Betdaq shouldn’t give Sir Alex Ferguson too many last campaign and went on to win five of Buy Man United supremacy at HT with Sporting index worries – his side have won four of the last those by the half-time draw / full-time win if score is tied

back down to earth tomorrow afternoon. centre, though, and they could easily have TOTTENHAM Spurs have won seven of the last eight let in more against Stoke last weekend. league meetings between the sides, draw- A feature of both these two teams has ing the other one. Harry Redknapp rested been high scoring games of late. There WEST HAM the majority of his first team for the mid- have been at least three goals in six of the week game against Arsenal, so they will be Hammers’ last eight home matches and fresh for this one. There is an argument the same is true in six of Spurs’ last eight TOMORROW – 3.00PM that they will have one eye on next week’s away trips to bottom-six sides. In fact, Champions League match against FC since the start of last season 61% (14/21) of WEST HAM seem to have arrested the slide Twente, but they should still be too strong West Ham’s games at Upton Park have pro- slightly over the past week by taking a for the Hammers. duced three or more goals. point at Stoke last weekend and then beat- Avram Grant will obviously have been ing Sunderland in the Carling Cup on concerned with the start his team have POINTERS... Tuesday. made to the season, but he will be happier However, their record against Tottenham now they have a point on the board. Their Tottenham to win at 11/10 on Betdaq is terrible and they could come crashing defence has leaked goals left, right and Buy total match goals at 2.9 with Sporting Index CITYA.M. 24 SEPTEMBER 2010 Punter 37

RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THE BEST BETS OVER THE WEEKEND…

Poet’s Voice a solid GETTYPicture: each-way bet in QEII POINTERS... DARAJAAT 2.00pm Ascot (today) DEACON BLUES 3.10pm Ascot (today) MASS RALLY (Back-to-lay) 4.20pm Ascot (today) ADLY the eagerly awaited clash ground turns soft, he will be a serious to a flyer in the opening Nursery. She SAJJHAA 1.55pm Ascot (tomorrow) between Canford Cliffs and threat to both Makfi and Rip Van comfortably broke her maiden tag at THEYSKEN’S THEORY 3.05pm Ascot (tomorrow) Makfi won't take place at Ascot Winkle. The latter looks far better Kempton earlier this month and the POET’S VOICE e/w 4.15pm Ascot (tomorrow) Stomorrow as Richard Hannon's suited by a mile and a quarter these stable had a winner at Goodwood on DALGHAR 4.45pm Ascot (Sunday) triple Group One winning miler days and may get tapped for toe. Wednesday. scoped badly yesterday and misses Elsewhere on tomorrow's Ascot James Fanshawe’s DEACON BLUES the race. Makfi was well beaten when card and Frankel looks impossible to has been slightly unlucky so far this the pair last met at the Royal meet- oppose in the Royal Lodge Stakes. season, but he deserves to win a ing, but subsequent tests revealed a Henry Cecil's colt has scared off the decent prize and Kieren Fallon should INSIDER throat infection and he has since con- majority of his rivals and looks to be able to bring him home in front in the firmed his place at the top of the mile have a relatively routine task now the DJP Handicap (3.10pm). tree by claiming the scalps of that Titus Mills has defected. I must also give a word to MASS he danger of betting on horserac- 9stone to victory in the past decade, so Goldikova and Paco Boy in France last There is a far more interesting RALLY in the 4.20pm. Regular readers ing at this time of year is that we it’s best to concentrate on those time. match in the Fillies Mile where White of this column will know that I’ve have no idea what the weather is towards the foot of the handicap. Frustratingly, I was keen to side Moonstone is scheduled to take on backed him on his last three starts. Tgoing to do. Ascot has been dry- This year’s race looks as competitive with the French raider at around 2/1 Brian Meehan's THEYSKEN'S THEORY. He seems to travel very strongly in his ing out all week, but there is plenty of as ever and I would rather back a few to gain his revenge, particularly with The former has looked a really excit- races before emptying, but I’m inter- rain forecast for the next couple of days big-priced horses each-way. Mark so much rain around. However, I ing prospect in her last two starts ested to see his shrewd handler reach which could have a big impact on Johnston’s LOWDOWN (0.5pts e/w) won't be backing him at odds-on as, winning the Sweet Solero and the for a first-time visor. He’s not one to tomorrow’s markets. has disappointed in his past few out- infection or not, he didn't seem com- May Hill, but I'll take a chance on the rely on, though, so I’ll be adopting a It’s a great shame that Canford Cliffs ings, but judged on his comprehensive fortable on the round course when Meehan filly who looked a bit special back-to-lay strategy on Betdaq. won’t meet Makfi for round three and I win in the Scottish Steward’s Cup in last here in June and is without doubt at Goodwood last time. We don’t yet know who will be run- can’t really see past the French colt July he is definitely no 40/1 shot. I’ll a better horse over a straight mile. Michael Jarvis has always had a ning in Sunday’s John Guest Diadem now. He’s too short at 8/11, though, so also have a small bet on stablemate That said, he has the best form in the great deal of faith in SAJJHAA and Stakes at Ascot but if DALGHAR is in I’ll be leaving the QEII alone from a COLEPEPER (0.5pts e/w) and last book and is unquestionably the one although the Oaks was a step to far, the field he would rate my nap of the punting perspective. year’s winner ADVANCED (0.5pts e/w). they all have to beat, but there may she bounced back to form at Bath last weekend. He has run in top races all The Totesport.com Challenge Cup Finally, it might be worth having a be value in backing POET'S VOICE time and can land tomorrow’s open- summer and the drop back to six fur- (3.40pm) has been a very difficult race few quid each-way on William Haggas’ each-way against him. er. longs will be right up his street. Lady for punters recently with a 33/1 and DEVER DREAM (1pt e/w) in Sunday’s Godolphin's Celebration Mile win- There is some decent action at Of The Desert is the chief danger and 50/1 winner in the past three years. Diadem Stakes, as she was very impres- ner looked back to his best last time Ascot this afternoon and Marcus she would be my selection if Dalghar Only one horse has carried more than sive at Doncaster last time. when seeing off Main Aim and if the Tregoning’s DARAJAAT can get us off doesn’t show up.

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SPORT | IN BRIEF

Hamilton wary of Alonso Canford is canned FORMULA ONE: Lewis RACING: Triple Group One Hamilton believes his former winner Canford Cliffs will miss McLaren team-mate Fernando Saturday’s Queen Elizabeth II Alonso is his closest rival for Stakes at Ascot after failing to the world championship. recover from injury. Alonso moved up to third in The Sussex Stakes winner the championship standings was pulled out at yesterday’s with victory in Italy last time declaration on the advice of round and lies just 16 points vets. behind Hamilton and 21 drift of leader Mark Webber ahead Rocket blasts Whirlwind of this weekend’s Singapore SNOOKER: Ronnie O’Sullivan Grand Prix. came through the battle of “Fernando seems to be [the the entertainers to beat his main threat] because Ferrari childhood hero Jimmy White have really stepped up their 3-1 and reach the last 16 of game,” Hamilton said. the World Open yesterday. Pictures said to have been taken this week show the work still be done at the athletes’ village as teams prepare to fly to Delhi. Pictures: BBC

▲ COMMONWEALTH GAMES have been dogged by allegations of pose. The board continues to press corruption and monsoon rainfall- the organising committee of the BY FRANK DALLERES but were plunged into crisis this Commonwealth Games Federation TEAM ENGLAND last night gave the week by grave concerns over the for assurances on both the stadia Commonwealth Games a timely cleanliness and suitability of the and the accommodation as well as shot in the arm by announcing teams’ accommodation. liaising with the British govern- they will stick to their plan of com- The state of the athletes’ village ment. At all times the safety and peting in the troubled event came in for even closer scrutiny yes- security of our team is paramount.” despite lingering concerns over terday after photographs said to England’s team will be without facilities. have been taken this week and pub- three of its best-known names, Chiefs from the 17 member lished by the BBC yesterday showed after triple jumper Phillips Idowu, sports of Commonwealth Games badly stained bathrooms, unfin- 400m star Christine Ohurogu and England (CGE) unanimously agreed ished building work and a bed tar- 1500m runner Lisa Dobriskey with- to compete in Delhi, albeit without nished by muddy paw-prints. drew this week. a handful of high-profile names But a CGE statement said chef de Wales will be missing one of its who had already withdrawn. mission Craig Hunter had been best medal chances in cyclist The decision followed similar encouraged by witnessing “the Geraint Thomas, who pulled out moves from the Wales and improved levels of resourcing yesterday blaming hygiene fears, Scotland teams, who both said they which are required to resolve the along with English trio Peter had been reassured by promises significant operational issues, but Kennaugh, Ian Stannard and Ben from top-level Indian officials. we will continue to monitor the sit- Swift. New Zealand and Canada Preparations for the competi- uation daily to ensure the village delayed their travel while they tion, which starts on 3 October, and stadia are safe and fit for pur- waited for reassurances. Apologise or we’ll sue, ECB tell Butt

▲ CRICKET Despite calls for them to with- ogy. Mr Butt has been advised that draw from the series, England if a satisfactory response is not BY JON COUCH reluctantly played out the remain- received, legal proceedings will be ACCUSED England players have for- ing two games, eventually clinch- commenced against him without mally demanded a “full and unre- ing a 3-2 win at the Rose Bowl on further notice.” served” apology from Pakistan Wednesday. Meanwhile, police investigations Cricket Board chairman Ijaz Butt But now, the England and Wales are continuing into allegations that after he alleged they were involved Cricket Board has joined forces Test captain Salman Butt and fast in match fixing. with the Professional Cricketers bowlers Mohammad Amir and Butt sparked outrage in the Association to draft a letter to Butt Mohammad Asif were part of a England dressing room after sug- threatening legal action if no apolo- spot-fixing plot during the fourth gesting the players took money to gy is made. Test at Headingley. All three have lose the third one-day international A statement confirmed: “The let- been suspended by the at the Oval last Friday. ter seeks a full and unreserved apol- International Cricket Council. Results BLUE SQUARE BET PREMIER Wiegele (Aut), Jeppe Huldahl (Den), Martin Erlandsson AFC Wimbledon...... (0) 2 Crawley Town...... (1) 1 (Swe), Paul McGinley, Padraig Harrington, Gregory Havret TODAY’S DIARY Hatton 77 Tubbs 43 (Fra). 69 Sam Hutsby, Gary Clark, Michael Lorenzo-Vera Kedwell 80 Att: 4,018 (Fra), Benn Barham, Phillip Price, Peter Baker, Pablo npower Football League Championship Larrazabal (Spa). Retz Course: 65 Chris Gane, Julien Portsmouth v Leicester (7.45) ...... GOLF Guerrier (Fra). 66 Robert Jan Derksen (Ned), Mark F npower Football League One EUROPEAN TOUR THE VIVENDI (Golf de Joyenval, Marly Haastrup (Den), Andrew McArthur, James Morrison. 67 Leyton Orient v Brentford (7.45)...... Course & Retz Course, Chambourcy, Paris)—1st Rd (Gbr & Michiel Bothma (Rsa), Jean-Baptiste Gonnet (Fra), Peter RUGBY LEAGUE Irl unless stated, par 72): Marly Course: 61 Johan Edfors Whiteford, Fabien Marty (Fra). 68 George Coetzee (Rsa), (Swe). 63 David Dixon. 64 John Parry, Jean-Francois Jose Manuel Lara (Spa), Daniel Vancsik (Arg), Richard engage Super League Qualifying Semi-Final (8pm): St Remesy (Fra). 65 Soren Kjeldsen (Den), Jarmo Sandelin Green (Aus), Phillip Archer, Jean-Francois Lucquin (Fra), Helens v Huddersfield. (Swe), Pelle Edberg (Swe), Todd Hamilton (USA), Kenneth Ignacio Garrido (Spa), Thomas Levet (Fra). 69 Gary Ferrie. 66 Paul Waring, Francois Delamontagne (Fra). 67 Murphy, Joost Luiten (Ned), Alastair Forsyth, Clodomiro RUGBY UNION Scott Strange (Aus), Raphael Jacquelin (Fra). 68 Martin Carranza (Arg). Championship (7.45): Nottingham v Esher. SPORTS EDITOR JON COUCH email [email protected] CITYA.M. 24 SEPTEMBER 2010 Sport 39 The hard work starts here

Sunday’s hard-fought victory in the Last week we made a number of driving rain at Headingley was a good rotational changes, but this week we win for us – now it’s leaders have been forced into a couple of Northampton at Vicarage Road and it alterations through injury. Justin doesn’t get any tougher than that. Melck has a rib problem, while Alex From then, it’s Leicester away then Goode may be out for a couple of a Heineken Cup double header weeks after injuring his shoulder. against Clermont and Leinster. The The injury has come at an awkward KICKING INTO TOUCH WITH hard work starts here. time for Alex, who was just finding Northampton don’t have a 100 per his feet at fly-half, but if he quickly BRENDAN VENTER cent record for nothing. They are a rediscovers his form on his return, very neat and tidy side, who do their there’s no reason why he couldn’t be VERY game is tough at this top jobs well and are good at what they considered for a possible England call- level of rugby, of course, but it’s do. They play the basics well with a up. He could certainly do a job. fair to say that these next four philosophy of putting execution For ticket details on the game against Eweeks will give us a good indica- before innovation. We will have to be Northampton Saints Saturday (ko 3pm), tion as to where we are right now. on our mettle to beat them. call the ticket office on 01727 792800.

Ferguson’s Manchester United finished second last season. Picture: ACTION IMAGES Fergie: Title between us and Chelsea

▲ FOOTBALL probably be the ones against each other. Last year we lost both of those Y FRANK DALLERES B games and therefore that decided the MANCHESTER United manager Sir title.” Alex Ferguson believes the Premier Chelsea can already boast a four- League’s destiny will be decided by point lead at the top of the table, hav- the two clashes between his side and ing won all five of their league champions Chelsea. fixtures, although their momentum United were denied a record fourth was checked on Wednesday night by successive top-flight title last season a Carling Cup defeat at home to by Carlo Ancelotti’s double winners, Newcastle. They face a tricky trip to who have begun the new season in Eastlands to face City tomorrow and blistering form. will do without the injured Salomon And despite Arsenal’s encouraging Kalou and Yossi Benayoun, while start and the vast sums lavished by Frank Lampard is a major doubt. neighbours Manchester City on new United, meanwhile, have dropped players, Ferguson anticipates another points at Fulham and Everton but reg- two-horse race with the Blues. istered a morale-boosting victory over “I always look at the team that Liverpool last weekend and on wins the league the year before, you Sunday visit a Bolton side with just have to have a target to try to work one win so far this season. on,” said Ferguson. Striker Dimitar Berbatov, a hat- “It’s up to the rest, including us, to trick hero in the 3-2 win over do that and Chelsea are the champi- Liverpool, is to be invited back to the ons. They’ve had a good start to the Bulgaria national team by new coach season and I look upon them as the Lothar Matthaus. Berbatov, 29, main danger to us. announced his international retire- “The games that will matter will ment in May, citing personal reasons. Knockout blow for Hatton as he is stripped of boxing licence ▲ BOXING detrimental to the interests of box- ing” and that the 31-year-old had RICKY HATTON’S career lay in ruins “brought the sport into disrepute”. last night after he had his boxing It added: “Ricky Hatton is not an licence revoked following allegations active boxer and his current physical of cocaine use. condition is such that the board decid- A British Boxing Board of Control ed to withdraw his boxer’s licence.” (BBBC) hearing yesterday found the Hatton, 31, was fined £20,000 but two-weight world champion guilty of has been told he can continue to misconduct. work as a promoter. In a statement, the BBBC said He is now at a rehabilitation clinic Hatton’s “actions and behaviour were and faces a police investigation. 40 CITYA.M. 24 SEPTEMBER 2010

SARACENS READY FOR DEFINING RUN OF GAMES READ BOSS BRENDAN Sport VENTER’S COLUMN: PAGE 39 Gerrard: We Monty’s back will recover as England from cup set sights on humiliation ▲ FOOTBALL BY FRANK DALLERES LIVERPOOL captain Steven Gerrard has pleaded with dejected supporters Ashes glory to keep the faith despite the Reds’ humiliating Carling Cup exit to Northampton Town. ▲ CRICKET crossroads. he 28-year-old, who has Wednesday’s penalty shoot-out BY JON COUCH 126 wickets in 39 Tests for England, defeat to the League Two outfit at has revived his fortunes at Sussex and Anfield marked a new low in Roy MONTY PANESAR will look to become forced his way back into the fold with Hodgson’s brief but troubled tenure England’s lucky charm again this win- 52 wickets in the County as manager. But Gerrard insists they ter after earning a recall to the squad- Championship this season to help the will improve on their tally of just five for the Ashes series in Australia. south coast team win promotion points from five Premier League The left-arm spinner hasn’t played back to Division One. games if given time. for England since his batting heroics He got the nod over Kent’s James “What I would ask all the support- with James Anderson to help save the Tredwell and Yorkshire’s Adil Rashid, ers is to trust the players and what first Test of the 2009 Ashes series in who misses out altogether despite his the players are saying,” said the Cardiff. excellent domestic form. England midfielder. “I’ve been read- Panesar is joined in the 16-man “Monty deserves his opportunity to ing and listening to what they’ve party by paceman Chris Tremlett, assume the role as England’s second Panesar has revived his career at Sussex. Picture: ACTION IMAGES been saying and they’ve all said we’ll who won the last of his three caps in spinner behind Graeme Swann,” said get it right in the end – and we will. 2007. He gets the nod over Yorkshire’s chairman of selectors Geoff Miller. ENGLAND | ASHES LINE-UPS “Football isn’t just about highs. Ajmal Shahzad, who drops down to “Monty has gone away and worked Throughout my career I have experi- the Performance squad. on his bowling since his last England ASHES TEST SQUAD: A Strauss (capt, (Essex), J Dernbach (Surrey), A Gale enced both highs and lows and proba- At 6ft 7in, Tremlett adds even more appearance and he continues to be an bly learnt more from the lows height to the pace attack – indeed attacking threat with the ball in his Middx), A Cook (Essex), J Anderson (Yorks), J Hildreth (Somerset), C because you look at what went wrong with Stuart Broad (6ft 5in) and Steven hand.” (Lancs), I Bell (Warwicks), T Bresnan Kieswetter (Somerset), A Lyth (Yorks), L and try to learn from your mistakes.” Finn (6ft 7in), they make up the tallest Elsewhere, Jonathan Trott and (Yorks), S Broad (Notts), P Collingwood Plunkett (Durham), A Shahzad (Yorks), B Gerrard and the rest of Hodgson’s trio of bowlers in England history. Steven Finn were handed central con- (Durham), S Davies (Surrey), S Finn Stokes (Durham), J Taylor (Leics), J first team were rested against Tremlett’s Surrey team-mate Steven tracts for the first time, but the (Middx), E Morgan (Middx), M Panesar Tredwell (Kent), C Woakes (Warwicks). Northampton but are set to return on Davies takes the reserve wicketkeep- biggest surprise was the omission of Saturday to face Sunderland. ing slot over Craig Kieswetter, while Eoin Morgan, who loses out to Bell. (Sussex), K Pietersen (unattached), M CENTRAL CONTRACTS: A Strauss, J “The players are allowed to be fit-again Ian Bell and Yorkshire seam- Instead, Morgan is one of six play- Prior (Sussex), G Swann (Notts), C Anderson, I Bell, S Broad, P Collingwood, down today but it’s up to players like er Tim Bresnan make up the party. ers with incremental contracts, Tremlett (Surrey), J Trott (Warwicks). A Cook, S Finn, K Pietersen, M Prior, G myself to pick them back up,” he But it was the inclusion of Panesar including Ravi Bopara, Luke Wright PERFORMANCE SQUAD:J Adams Swann, J Trott added. “Playing for this club there are which proved the most romantic – and Michael Yardy, who will automat- (Hants), J Bairstow (Yorks), D Briggs INCREMENTAL CONTRACTS: R Bopara, big games every two or three days and just one year after his departure from ically earn a full contract if they make (Hants), M Carberry (Hants), M Chambers T Bresnan, E Morgan, L Wright, M Yardy. we need to get everyone’s head Northamptonshire left his career at a enough international appearances. focused on Sunderland now.”