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Extreme Richard Lord Mayor sports Page 19 Northedge Page 9 welcome Page 7 Issue 1 September 5 2005 BUSINESS WITH PERSONALITY FREE

REVEALED: THE CITY’S BEST ANALYST Page 12

Liberty in Elder/CITYAM Neville Picture: race for Flextech US entrepreneur John Malone is said to have entered the £1bn fight to buy the digital television company behind Living TV and Bravo

Economics Thursday for first round bids. It is exploring its options ahead of an expected merger with larger BY ZOE WOOD rival NTL and could expect to raise between £800 AMERICAN entrepreneur John Malone’s Liberty million and £1 billion from any sale. Global is understood to have entered the £1bn It is thought that last week’s bidders were asked chase to acquire Flextech, the digital TV company to lodge offers for each of Flextech’s three main behind Living TV and Bravo. business units: shopping channel Sit-Up TV, UKTV Malone joins a crowded field of British and glob- and Flextech Television, the umbrella for the Living al media players intent on acquiring the Telewest- TV and Bravo channels. On the merits of the bids owned broadcaster. RTL, which owns British received, Telewest will decide whether or not to pro- terrestrial channel Five, is thought to be leading a ceed to a formal auction. pack that includes ITV and BSkyB as well as If Malone succeeds it would bring Flextech back American rivals Viacom and Time Warner. under his wing. He was a shareholder for 10 years Telewest has yet to make its mind up over the dis- and shepherded its link up with Telewest. Malone Simply the best: ABN Amro’s Finlay Thomson heads CityA.M.’s exclusive analyst poll. He achieved top spot with stock posal of Flextech and imposed a deadline of last sold his stake in September 2004. picks such as Cairn Energy and Dana Petroleum, the oil stars of the past 12 months. MARKETS Friends Airlines Jobs Spirits Morrison Exel Oil BA & Virgin to Two-year job Karen Jones Supermarket New bidders line Katrina sends Level Wk chg Level Wk chg News Corp plans FTSE 100 5,326.85 +98.79 BRENT $65.75 -0.58 swoop in raise fuel boom for Square fends of faces staff up for UK logis- shockwaves DOW 10,44737 +50.08 $ v £ 1.84 + 0.04 website. surcharge. Mile. investors. walkout. tics group. through US . S&P 500 1,218.02 +12.92 ¤ v £ 1.47 unch Page 3 Page 3 Page 5 Page 5 Page 5 Page 7 Page 8 NASDAQ 2,141.07 +20.30 $ v ¤ 1.25 +0.02 COMING TUESDAY WEDNESDAY THURSDAY FRIDAY Alan Vicki Laurie Ray THIS Ruddock Butler- Laird Snoddy WEEK ... Henderson 2 NEWS CITYA.M. MONDAY 5 SEPTEMBER 3 2005

INSIDE THE LORD MAYOR Welcome to a new Emma Jones: baby era in business boomers come of age. The whole world in one Square Mile coverage Page 16 IN London, a whole world can be WELCOME to the world’s first free daily found in one city and I am sure this business newspaper. CityA.M. makes its working world will join me in extend- debut on the streets of London today ing a warm welcome to CityA.M. and we trust you will enjoy your first Today, as the first copies of the look at the capital’s only newspaper newspaper hit the streets, my busi- dedicated to business readers. ness team and I will be half way across CityA.M. is a one-stop-shop for all the the world in South America, working latest business news, markets informa- there on behalf of all UK-based finan- tion and analysis of the financial world. cial service firms. As well as the most up-to-date news and After my morning meetings at the stock market information, it also pro- Buenos Aires stock exchange and the vides the latest in sport, motoring, Central Bank of Argentina, I’ll be style, leisure and what to do in your preparing for afternoon talks with precious spare time. the economics minister and tomor- This newspaper is interested in all row’s international seminar on the people behind the deals — the The City’s new, favourite Carbon Trading — where London’s names often overlooked by other news- lead in this important area will be a papers. So if you’ve advised on a deal of cartoon. Page 9 key theme. almost any size in recent times then let Today, I also want to re-read my us know. It is your financial village and notes for talks in both Santiago and CityA.M. is your parish newspaper. Rio de Janeiro later in the week on re- This is issue one. To come this week — insurance issues — and ring a London Ambassador: Michael Savory travels the world promoting London’s business interests and in the following weeks, months contact in Lloyd’s to clarify a technical and years ahead — will be competitions point about market access in Brazil. ership of the London Stock Exchange, al links that encompass the globe. to get your competitive juices really I guess I have 21 major briefs to and security in London. Among readers of CityA.M. will be flowing, top-name columnists such as master over the next 11 days — for 53 While I am sorry to miss out on financial services workers speaking in Sam Torrance on golf, Vicki Butler- separate meetings in five cities in CityA.M.’s launch, I am not sorry to be some 290 languages; indeed, 87 per Henderson on motoring and Ray three South American countries. And busy abroad working on behalf of the cent of all Square Mile business Snoddy on the media, and a wealth of every single one of those issues is Square Mile; indeed this Monday will includes a major international element. surveys, and analysis not seen in any vitally connected to the future of be one of 82 days I expect to be over- The Square Mile workforce served other newspaper. London as an international financial seas in my capacity as Lord Mayor. My by CityA.M. stretches beyond Canary Thank you for picking CityA.M. up centre —and its 300,000 City jobs. job and that of the Corporation of Wharf and Westminster — and the from your hand-distributor this morn- REGULARS On top of those I expect to field London is to look after the Square daily working links of Team Financial ing. From now on you know where to Economics - page 7 press inquires about the tragic killing Mile and promote it — and although UK reach right around the globe. find us — outside every underground News analysis - page 8 in London of Jean Charles de Menezes our history is ancient, our role is mod- We may be called the Square Mile — station, mainline rail terminal and — and the dispute over the Falklands ern and in the 21st century. but we include the whole world. Docklands Light Railway exit in the Diary & comment - page 9 — as well as the more usual questions And the fact that my 12-strong busi- City of London and Canary Wharf. Reviews - page 20 on PPP initiatives, CAP reform, the rel- ness team and I will be half a world By The Lord Mayor of the City of London, CityA.M. is honoured to serve Sports results - page 23 ative merits of raising funds in away underlines the City’s position at the Right Honourable Alderman Michael London’s financial community. It’s the London as against New York, the own- the heart of a network of internation- Savory best parish readership in the world. [email protected] COMING UP... WHAT THE PAPERS SAY THIS MORNING Tuesday: Get fit, A spokesman said it was “absolutely stay healthy irresponsible and futile” to make any THE SUNDAYS judgment on future losses at this stage. Deutsche Post moves on Exel Treasury dismisses RAC plan CITYAM TOP executives at Exel were last night A LEADING motoring organisation is meeting to discuss a preliminary Americans target City for £20m calling on the government to help driv- Pumps primed for £1 a litre takeover proposal by Deutsche Post A GROUP of American businessmen is ers beat the rising cost of fuel by bring- Royal Dutch Shell and BP are to that values the UK logistics company at trying to raise £20m in the City and the ing in a variable tax regime. The RAC spend millions upgrading their £3.6bn (Ř5.9bn) and could create the continent from investors wanting to Foundation says poor families in rural pumps and forecourts to allow them world's biggest logistics group. invest in so-called restricted securities areas who are dependent on their cars to charge higher prices. Last year of small quoted American corporations. are now spending more than a quarter they reported combined pre-tax Diversity drive fails of their weekly income at the pumps. profits of £30bn. MOST non-executive directors of UK Lloyds TSB in Citigroup cash pact companies are still white, middle-aged LLOYDS TSB and Citigroup, of America, Firms look at going abroad Writers to block HMV takeover men, according to research commis- agreed a deal at the weekend to provide MAJOR British manufacturing compa- Leading authors and publishers sioned by the Financial Times, in spite payment and cash management servic- nies are considering switching produc- want to stop HMV, the retail group of pressure to increase boardroom es in Britain and plan to look at more tion to overseas sites because of the that owns Waterstone’s, from bid- diversity. joint opportunities in transaction rising cost of energy and concerns ding for rival bookseller Ottakar’s. services. about security of supply, according to a leading business group. CCB looks for risk officer New London Bridge House CHINA Construction Bank, the coun- Baugur takes £500m fund stake 25 London Bridge Street try’s second-biggest lender, is looking THE Icelandic investment company £40bn Katrina insurance claims London SE1 9SG for a new chief risk officer ahead of its Baugur has taken a stake in a £500m British and American insurance Tel: 020 7015 1200 Fax: 020 7015 1299 overseas $5bn initial public offering, property fund targeting British food companies face claims topping Email: [email protected] expected this year. Petrol giants prepare for £1 litre stores and retail parks. £21.7bn following the devastation in www.cityam.com BRITAIN”S biggest retailers have begun the wake of Hurricane Katrina. FRS standards 'misleading' preparing for the price of fuel to break Editorial DISCONTENT is growing among UK through the 100p a litre barrier. BP said Editor David Parsley companies over international account- it had already started to convert price Deputy Editor Claire Oldfield ing standards on derivatives, the source displays and signs in its petrol stations Morrison faces series of strikes Associate Editor Dominic Midgley of a long-running spat between stan- to cope with higher prices. Blair’s £2bn mission Wm Morrison faces crippling strike Production Editor Kathi Hall dard setters and the European TONY Blair last night defied critics as action after the retailer confirmed Chief Photographer Neville Elder Commission. Manufacturers expect recovery he jetted to China and India to clinch that it was likely to close one or Art Director David Gray OPTIMISM among manufacturers has trade deals worht £2bn to Britain. more of its distribution centres. risen sharply while service firms Commercial enjoyed a boost in output, according to EU’s £10bn gas bill Director of Sales Jeremy Phillips surveys today that will cement predic- BRITISH families pay an extra £186.60 a & Marketing tions for no change in interest rates. year on their gas bills thanks to Head of Advertising Jeremy Slattery Mortgages to landlords to rise out-dated monopolies in other EU Carlton-Cannes in hotel sell-offs Head of Distribution Nick Owen BANKS in the buy-to-let market are countries. InterContinental Hotels to trigger a looking forward to a sharp rise in bumper payout for shareholders by demand for loans resulting from an selling hotels across Europe includ- EDITORIAL expected 40 per cent surge in the pra- SECTORS ing the Carlton-Cannes in France. STATEMENT vate rented sector. Economics 1,2,6 Gambling 8 Olympics 4 This newspaper adheres to the Banking 2, 6, Hedge Funds 4 Retailing 3, 4, 7, 14 Lloyds ‘can cope’ with Katrina Aerospace 6 International News 6 Recruitment 16 system of self-regulation overseen LLOYDS of London, stung by weekend B&Q ready to axe staff by the Press Complaints Commission. The reports that it had estimated the losses Consumer Goods 3 Media 7 Sport 6, 23, 24 THE DIY chain B&Q will cut a third PCC takes complaints about the editorial to the insurance industry from Construction 6 Oil & Gas 4, 7 Support Services 2, 3, 4 of its head office workforce, almost content of publications under the Editor’s Hurricane Katrina at $40bn (£22bn), has Food & Drinks 2, 4 Pharmaceuticals 4 Textiles 3 400 jobs, days before an expected Code of Practice, a copy of which can be insisted that its syndicates are “well warning by its parent company. found at www.pcc.org.uk Fund Management 14 Postal Services 3 Transport 1 equipped” to deal with the catasrophe. CITYA.M. MONDAY 5 SEPTEMBER 2005 NEWS 3 News Corp may move in for Friends

INTERNET Friends Reunited, which saw profits jump 27 per cent to £4.6m last year on BY HELEN POWER revenue of £8.8m, has received several RUPERT Murdoch’s media giant News takeover approaches before but these Corporation is understood to have have been rejected. This year profits are made an approach to buy internet dar- exepcted to leap to £6.5m. ling Friends Reunited in a deal that The group, founded in 2000, is now could net the websites co-founders mil- one of Britain’s biggest internet suc- lions of pounds. cess stories. But the Pankhursts have Steve and Julie Pankhurst, the hus- spurned the luxury lifestyle, choosing band and wife team behind the site to remain in their semi-detached that brings old friends back in contact, house in north London and driving a have been talking to News convertible Mini. Recently the compa- International chiefs since the begin- ning of August. FAST FACTS: COMPANY NAME The Pankhursts, advised by corporate ● Steve and Julie Pankhurst dreamed up finance media specialist Long Acre, are Friends Reunited in July 1999 and launched it considering a sale of all or part of the from their home in north London. business to trade buyers. If they decide ● to sell-out entirely they could net up to By the beginning of 2002 membership had £120m for themselves and business rocketed to four million. partner Jason Porter. ● In 2003 the Pankhursts took a backseat Analysts believe, however, the compa- and brought in new management. ny is more likely to opt for selling a large minority stake in the business to ny has made a trail of acquisitions, News Corporation rather than releas- including online jobs site Top Dog and ing a controlling stake. School Friends, a reunion site in News Corporation has recently start- Australia, New Zealand and South ed to gather a string of internet proper- Africa. The company has also expanded ties under the unbrella of Fox into areas such as online genealogy Interactive Media. The web arm of and recruitment. Murdoch’s global empire bought News Corporation, owner of the MySPaces.com, another community Times and News International, refused website, for $580m (£318m) in July. to comment on any talks. In the money: Julie and Steve Pankhurst of Friends Reunited Rex Pictures

THE WEEK AHEAD Monday 5 September Fresh threat of dearer air travel Taylor Nelson Sofres half-year results British Airways August traffic fig- ures Transport haul and £8 for short-haul flights, may BA and Virgin Atlantic could put as last week before falling back slightly to Wembley half-year results confirm the price-hike as early as this much as £10 on the price of a long-haul hover around $68 at Friday’s close, has European Motor Holdings half-year BY ROGER BAIRD morning when it reveals strike-hit traf- ticket. They are likely to be joined in also led travel operators to consider a rise trading update BRITAIN’S leading airlines are set to fic figures for August. the price hike for passengers by other in prices for next year’s holiday season. William Hill half-year results increase their surcharge on air tickets BA said: “We keep fuel under con- airlines such as Bmi, Air France and Karen Vyse managing director of Travis Perkins half-year results to compensate for spiralling oil prices. stant review and are monitoring the Lufthansa, the German flag carrier. Holidays4U said: “Some companies are US Markets shut for end of summer Virgin Atlantic, which slaps a £24 situation. We will adjust the surcharge Qantas, the Australian airline, and already passing on a surcharge of up to Labour Day bank holiday. surcharge on every one-way, long-haul level where and when we feel it is Hong Kong-based Cathay Pacific, have £25 a person on their packages. We cur- Chartered Institute of Purchasing flight, said: “We are watching the situa- appropriate.” already announced a rise in passenger rently make a surcharge of £16 a head and Supply's PMI Services data tion with mounting concern. We Virgin added that its £24 levy was surcharges to cover the sharp increase for our holidays to Turkey, and that will review our position on a day-to-day only a third of the cost of the fuel in oil prices last week following the dev- have to rise if the airlines raise their Tuesday 6 September basis. The fuel price is currently an increases it had borne over the last 16 astating consequences of Hurricance charges, although no extras will be Brixton half-year results extremely heavy burden for us to bear.” months. Fuel alone is now 25 per cent Katrina in America’s Gulf states. The ris- added to those who have booked Thorntons preliminary full-year BA, which also charges £24 for long of the airline’s overall costs. ing cost of oil, which went above $70 already.” results George Wimpey half-year results Partygaming half-year results British Retail Consortium published B&Q set to chop 400 HQ jobs IFM woos City Mandy’s bra In the US, the ISM non-manufactur- ing survey and the Fed's Beige Book, Retail Ian Cheshire this summer after first an anecdotal survey of US regional quarter like-for-like sales slumped 7.7 for AIM support war peace activity. AILING DIY chain B&Q is axing up to per cent. Since his June appointment 400 head office jobs in a bid to get its Cheshire has been conducting a root Mining Economics Wednesday 7 September performance back on track. and branch review of the 338-store BAE Systems half-year results Trading at the Kingfisher-owned chain, the results of which will be CHINA-BACKED mining company EU trade Commissioner Peter ITV half-year results chain has been disappointing and the announced at Kingfisher’s interim International Ferro Metals (IFM) starts a Mandelson averted political embarrass- Savills half-year results retailer is expected to confirm the update on 15 September. round of City meetings today, raising ment for his friend Tony Blair late last Wyevale Garden Centres half-year headcount reduction at its 1,40- strong Kingfisher has blamed its trading up to £85m prior to an AIM launch at night with a last-gasp deal to end the results Southampton base this week. woes on weak consumer demand and the end of September. ‘bra wars’ spat. EasyJet August traffic figures The group, led by chief executive reduced footfall in stores and the The company, currently valued at A spokesperson for Mandelson told Arena Leisure half-year results Gerry Murphy, parachuted in former British Retail Consortium-KPMG sales $120m (£65m), expects a market capi- City A.M. late last night: “There have international and development boss figures for August, due out tomorrow. talisation of about £170m upon flota- been constructive talks between the UK Thursday 8 September tion on September 29. and China. They are broadly in agree- SMG half-year results IFM signed a deal last year with Jisco, ment. This will lead to the unblocking InterContinental Hotels half-year GOOD DAY/BAD DAY the largest steelmaker in Northwest of the goods held.” results China, giving Jisco a 26 per cent stake However, the detail of the agreement Monetary Policy Committee meets to Good day Bad day in the company. In return, Jisco pro- has yet to be hammered out. decide on interest rates RENAULT’S Fernando Alonso is set to be TORY leadership candidate Kenneth vides its technical expertise and has The spokesperson added that further crowned as Formula One’s youngest-ever Clarke has been blasted by former party agreed take up to 50 per cent of the issues would be discussed at expert Friday 9 September champion next weekend. Alonso has chairman Lord Tebbit as the race to suc- company's output. CoMetals, a NYSE- level, but declined to comment any fur- BAA August traffic figures extended his lead after McLaren’s Juan ceed Michael Howard heats up. listed metals trader, has agreed to take ther on the structure of the deal. Pablo Montoya won the Italian Grand Speaking in a newspaper interview, at least 50,000 tonnes a year. Mandelson was locked in talks in In the US, the ISM non-manufactur- Prix in Monza. Spaniard Alonso finished Tebbit accused Clarke of being The company, founded by Stephen China until the early hours, but man- ing survey and the Fed's Beige Book, second but is well ahead of Montoya’s “lazy” and warned voters would find his Turner four years ago, owns the aged to agree basic terms with com- an anecdotal survey of US regional team mate Kimi Raikkonen who is the connections with the tobacco industry Buffelsfontein chromite deposit near merce minister Bo Xilai for the start of activity. only driver capable of catching up. distasteful. Johannesburg in South Africa. the summit tomorrow.

CITYA.M. MONDAY 5 SEPTEMBER 2005 NEWS 5

NEWS BRIEFS Fazio under pressure M&A activity leads to jobs boom THE Italian government has stepped up pressure on the Bank of Italy governor Antoni Fazio Recruitment M&A activity is 50 per cent across all FAST FACTS: CITY JOBS bankers, lawyers and accountants. to resign. Fazio is accused of favouring major European markets, according to “The new jobs have been created at Banca Popolare Italiana’s bid for rival BY ROGER BAIRD the research firm. ● Over the last year the FTSE 100 Index has all levels in the City,” said Thesiger. “At Antonveneta when it was up against OVER 50 per cent of City workers “This rise in M&A has meant two risen 17.3% and this has resulted in increasing senior, middle management and Dutch rival ABN Amro, despite con- intend to change jobs over the next things have happened to raise job mergers and acquisitions involving UK companies. administration levels. Top people have cerns about the Italian bank’s funding year because of rising market activity, prospects,” said Thesiger: “It has obvi- ● There have been 272 deals valued at £10.7bn spearheaded recruitment drives, but from regulators. according to a new recruitment survey. ously created more City jobs, but it also this year, according to Dealogic. they need support.” The report from consultants Morgan means people are now more bullish ● The report found that average senior salaries in The Morgan McKinley report found New Orleans airlift McKinley shows that 61 per cent of about moving companies. And these the City are up 3.7% to £74,689 from last year. that new City jobs created at, 5922, RESCUERS are scouring New Orleans workers believed they will move to moves leave spaces to be filled at the were 32 per cent higher in July than in for the last survivors of Hurricane higher paid jobs over the next 12 businesses they left.” During this period new guidelines the same month a year ago. Katrina after what is now being months because of rising capital mar- Over two years, three areas have boost- and legislation – such as International August suffered a “typical seasonal referred to as kets. The boom could continue for two ed City jobs: work on complex derivate Financial Reporting Standards, Basel II dip” but early signs are that the the largest years says Robert Thesiger, chief execu- products, corporate compliance and and US Sarbanes-Oxley compliance law September numbers look like showing emergency air- tive at the recruitment group. accounting regulatory procedures. – has created a raft of work for a “significant” increase on a year ago. lift in US history. Up to 40 air- craft operating around the clock finally cleared Spirit chief thousands from squalid condi- REUTERS Picture: tions at the Disaster: New Orleans Louisiana city’s vies to keep Superdome and convention centre. Carlyle leads Cadbury race PRIVATE equity firm Carlyle Group is from selling leading the race to buy Cadbury Schweppes’ European beverages Brewing arm worth around £1.2bn, according to weekend reports. The group has SPIRIT chief executive, Karen Jones, is at hired former PepsiCo executive Nish odds with her backers who want to Kankiwala from rival investment break up the company after repeated house KKR to lead the bid. Other attempts to sell the 2,000-strong pub bidders may include private equity chain, including Chef & Brewer and the firms PAI, Lion Capital, Cinven and Two for One chains, have failed. BC Partners. Having built the business over the past three years Jones wants to keep it Tchenguiz in Somerfield deal together until she can arrange a flota- PROPERTY tycoon Robert Tchenguiz tion or find a single buyer. is set to announce a formal bid for However, Spirit’s investors – private Somerfield this week, and is the equity groups Blackstone, CVC, Texas favourite to win the battle for the Pacific and the private equity unit of supermarket group, say sources close Merrill Lynch – argue it is time the to the talks. The deal is expected to company was sold off piecemeal. be announced at Somerfield’s annual “There are vigorous and robust meeting on discussions taking place,” said a source. Thursday. “It is fair to say the parties are not all Tchenguiz ‘s seeing eye-to-eye about the most attrac- consortium, tive resolution to the situation.” which also In July talks with rival Punch Taverns includes Apax to sell the company for £3bn collapsed, Partners and as did earlier talks to sell the business Off their trolley: Morrison’s shelves in danger of staying unreplenished due to distribution network plans Picture: Neville Elder/CITYAM Barclays

to Enterprise Inns and private equity Capital, is vying REX Picture: firm Cinven. Jones is estimated to hold with a second Set to bid: Tchenguiz a 3 per cent stake in the business. group headed by It is understood that rival private Wm Morrison faces strike threat over streamlining Japanese investment bank Nomura equity firm Alchemy remains interest- and property company London ed in buying the whole business. Retail to close “one or more” of its 15 Morrison’s is opposed to. “The GMB and Regional. warehouses. T&G have consistently refused our offers TROUBLED supermarket Wm Morrison A GMB spokesman said any stoppages to talk about how the integration UK seeks Olympic winners is staring down industrial action that would have serious implications process of Safeway and Morrison’s THE British government has begun Deutsche Bank could seriously affect its ability to for stores and could lead to “shelves might affect their members,” said a the search for key figures in its replenish shelves. being empty inside a week. We want to Morrison’s spokesman. strategy to ensure a successful The northern supermarket is at sit down and negotiate a proper “They have an open invitation at a 2012 Olympics in London. Ads in faces probe loggerheads with the GMB and T&G package for our workforce,” he said. national level to come and discuss with Sunday newspapers invited applica- unions who claim that the retailer refus- Workers have already been balloted and us any concerns that they may have on tions for the posts of chair and chief Banking es to negotiate over plans to streamline the unions expect next week’s an individual basis.” executive of the Olympic Delivery its distribution network. [September 15] result to unanimously Morrisons expect to finish the store Authority (ODA). DEUTSCHE Bank could be probed by Morrison’s has sold off 180 stores support action. conversions by November’s end. The German financial watchdog BaFin over since it bought Safeway last year and The dispute hinges on the unions spokesman added that the review of the US Chief Justice dies its recent sale of shares in carmaker recently told workers that it would like wish to negotiate in unison, which distribution network review was ongoing. CHIEF Justice of the United States, DaimlerChrysler. William Rehnquist, died at his home in The bank cut its holding from 10.4 Virginia at the age of 80. per cent to 6.9 per cent in late July after Rehnquist had been suffering from Juergen Schrempp stood down as chief thyroid cancer. A Supreme Court executive, which prompted a 10 per Betex introduce spokeswoman said there had been a cent rise in its share price. Platinum hits gold “precipitous An investigation was launched into decline” in his possibleinsidertradinginDaimlerstock Mahjon mania health over the before Schrempp’s resignation. BaFin past few days. says it has clear indications of improper His death cre- dealsbeforetheannouncement. in South Africa to the masses ates a second opening in four Mining Hennie Blignault, former geologist Internet months follow- REUTERS Picture: Jurys Doyle set for Gold Fields of South Africa and ing the retire- Rehnquist: Dies at 80 BY MARIANNE BARRIAUX now a consultant at Jubilee, says: “This CITY traders who are fed up with losing ment of Justice JUBILEE Platinum will today announce discovery is extremely significant in their rags on the plethora of internet Sandra Day O’Connor. for further gains a discovery that chief executive Colin world terms.” poker tables available, now have an Leisure Bird believes could rival the biggest pro- Stretching over 35 kms, the great alternative, thanks to Betex, the OFEX- Microsoft threat duction area in the world. news for Jubilee is that the ore is only listed gaming company. MICROSOFT’S chief exec vowed SHARES in hotel operator Jurys Doyle Drilling in Madagascar has revealed a 37 metres below the surface and is eas- Betex, has set up a joint venture with to “kill Google” according to US are set for further gains today as two complex that Bird believes could be even ily recoverable by open pit mining, the Canadian-based Mahjong Mania, court documents filed by Google. The separate investors mull over an offer for bigger than the South African Bush-veld reducing the costs significantly. who are the only aggregate play-for- claim was made in a sworn statement the Irish company. Complex which produces 80 per cent of Jubilee has been in Madagascar since money Mahjong game on the internet. by Mark Lucovsky, a former Microsoft Brits David and Simon Reuben con- the world’s platinum demand. 2001 and the island has since become a Mahjong is a game for four players employee who quit Google in 2004 . firmed an interest through Aldersgate He says: “The size and scope of this target for mining. It also currently that is similar to rummy and played However, Microsoft chief Steve and Irish developer Sean Dunne has discovery bears all the fundamentals plays host to Rio Tinto which has just with a set of 144 tiles; it is one of the Ballmer has denied the claims, saying met advisers to discuss fresh strategy. required for a world-class resource .” received approval to develop a $585m most widely played games in the world they are a “gross exaggeration of Jurys has hotels throughout the UK, “The thickness of the intersection (£314m) titanium dioxide project. and particularly popular in Asia. There what actually took place.” The state- Ireland and the east coast of the US. suggests the project could develop Jubilee closed at $905 (£492) an are more than 45 per cent of Hong ment comes as the latest twist in a The share price has leapt by more than into a regional, as opposed to a local ounce in London on Friday and rose a Kong residents claiming to have played fraught legal battle between firms. 40 per cent and is continuing to rise. situation.” further $10. at home for money. CANARY WHARF

So many wondrous fashion accessories, as far as the eye can see. Something for men, something for women. Oooh how splendid it is. Oh yes it is. www.mycanarywharf.com shops & restaurants cafés & bars arts & entertainment events & offers 8 NEWS CITYA.M. MONDAY 5 SEPTEMBER 2005 NEWS ANALYSIS

Illustration: RICHARD BURGESS

OIL BLOWS A GALE IL prices hit $70 a barrel last week as Hurricane turing-dependent China. Katrina hit America. In the US petrol prices are By LAURIE LAIRD And supplies remain tight. OPEC is producing at now tipped to rise by another 35 per cent within close to capacity, while non-OPEC production is Odays, while in the UK fears are mounting that American refining capacit. The extent of the damage declining, according to cartel members. OPINION the price of unleaded petrol will rise to £1 per litre. remains impossible to assess. But it's likely the bulk of That means oil prices will remain vulnerable to The oil price has been marching steadily higher those refineries will be out of commission for months. shocks: a terrorist attack on the Saudi distribution AMERICA’S economic godfather over the past 18 months, but the practitioners of the system, or cooling relations between Saudi Arabia – Alan Greenspan could not have dismal science remained uncharacteristically upbeat. Prices fall home to one-third of the world's proven oil reserves – picked a worse time to retire. What There was no panic as crude sailed past $40 a barrel — News that the International Energy Agency has co- and the west. Add to that the possibility of sanctions will the Fed do without him as it that is, more than four times its level of late 1998. ordinated a drawdown of strategic reserves pulled oil against OPEC's second-biggest producer, Iran, in retal- faces up to what could turn out to be And the experts were still talking about robust eco- prices back to the mid $67 for New York-traded blends iation for its nuclear mischief making. the beginning of a significant slow- nomic growth after crude breached $50, and they (and $65.70 for London Brent). The IEA will release an down following the havoc of Katrina? believed $60 oil was likely to shave just tenths of a per- extra 2m barrels a day for 30 days. Half of that – all Petrol at record Despite being in office during two centage point from global economic growth. crude oil – will come from America's reserves, with Rising oil prices act as a tax on consumers who face worrying economic bubbles - the But, with oil now hovering at $70 a barrel, prices the balance made up largely of petroleum, heating higher immediate costs. Petrol prices have hit record internet and housing booms - have hit the tipping point. Suddenly those experts are oil and jet fuel, mostly from European reserves. highs, above 92p per litre, in the UK, up from less Greenspan has been, on the whole, a lining up to voice their fears of slowing economic Remarkably, America, the world's biggest gas guzzler, than 70p in 2001. Retailers see prices breaching £1 a safe pair of hands. He has contolled growth, and quite possibly, recession in oil-thirsty holds no petroleum in reserve. litre over the next few weeks. However, most of the America’s economic rudder through western countries. Oil prices could rise much further The extra oil is likely to keep prices below that $70 nation's petrol pumps are able to display prices only the last four Presidents, and his before this shock is over. Goldman Sachs, one of the ceiling over the short term. But it doesn't change the up to four digits, or 99.99p a litre. Recalibrating the retirement at the beginning of next biggest players in the commodities markets, refuses fact that oil demand remains high. Even if higher machines could cost up to £300 a pump, according to year, had already caused some to to rule out a “super spike” to $105 a barrel. crude prices ultimately slow domestic demand in some estimates. question whether the economy Oil starts the week below that record high of $70.85 American and Europe, China is still demanding ever And it is those indirect costs that could eventually would survive intact without him. touched in the wake of Hurricane Katrina's devasta- more power. One third of the incremental demand sink consumer spending. Up to now, economists have Now those same observers must be tion. Katrina disabled more than one-tenth of for oil between 2000 and 2004 came from manufac- calmly pointed out that the UK uses 60 per cent less in a state of panic. oil per unit of gross domestic product than it did The scale of investment needed for when manufacturing powered the broader economy. the American Gulf coast to recover is The wrath of Katrina focuses the minds of leading insurers But the expanding service sector still gobbles energy, estimated at more than $100bn. from heating and lighting to transporting goods to That’s a hell of a lot for even the Early estimates of Katrina's wrath poorest regions – were covered by range is about $25bn – it would be place on store shelves. Up to now, manufacturers have world’s richest country to absorb. put financial damages in the neigh- insurance. US experts are estimat- absolutely irresponsible and futile been reluctant to pass on price increases, but that will While the Dow firmed by the close on bourhood of £54bn, making it the ing insured damage of approxi- to do that.” not continue indefinitely. Friday – and it won’t be affected costliest natural disaster in history. mately £20bn, the Lloyd’s of Farmers Group, a subsidiary of Rising prices could prompt British consumers to today on the Labor Day holiday – Experts warn the final bill could London Insurance market believes Zurich Financial Services, is the pull in their horns, dragging the wider economy into market watchers will be nervous rise much higher, as much of claims will exceed that total, biggest property insurer in a period of slow growth. The effect could be even when trading begins tomorrow. southern Louisiana remains under according to weekend reports. America’s southeast, while the US- worse: all US recessions – bar one –since World War II What is required is strong leadership water, limiting travel to affected Katrina's destruction matched based St Paul Travelers, State were followed in about a nine months by a sharp rise The last thing Bush needs to think areas. Power failures and road clo- Lloyd’s models of a worst-case | Farm, Allstate and CNA are all big in oil prices. And America has greater latitude to cut about is Greenspan’s replacement. sures have also prevented loss scenario. players. Analysts believe Allstate, interest rates in response to an oil-led downturn, as The longer Bush can delay the instal- adjusters from surveying the full A Lloyd’s spokesman said: “There America’s second largest home and the Federal Reserve considers economic growth and lation of his successor the longer the extent of the damage. isn’t a figure circulating at Lloyd's auto insurer, could loss more than inflation when setting interest rates. With the Bank old man will have to remain in place – Of course, not all those losses – about the total loss. The estimates £1.3bln this quarter, once claims of England and the European Central Banks follow- even until his 80th birthday next concentrated in one of America’s for total losses are so wide – the begin rolling in. ing narrow inflation targets, Europe may not be able March – and help America through. to cut rates as aggressively should growth falter. CITYA.M. MONDAY 5 SEPTEMBER 2005 DIARY 9 PAGE NINE email [email protected] COMMENT Out and about in the naked City RICHARD Fun-loving NORTHEDGE Lithgow’s King ready Clarke bait KENNETH Clarke’s return to the front to stamp on pages following his announcement that he is to stand for the Tory leadership brings back one particularly excruciating memory for the amiable Adrian Lithgow, senior account director at financial PR firm Lehmann Communications. this rebellion Lithgow was political editor of the Mail on Sunday when Clarke was Health Sec- retary. Lithgow was steaming like a race- THE governor of the Bank of England meets the rest of the monetary horse in the bar of the Grand Hotel in policy committee this week for the first time since most of his col- Brighton at 2am one night during party leagues had the temerity to tell him they knew more about running conference when an old mate made the the economy than he did. It was an act of courage or folly — but mistake of introducing him to the hon either way, do not expect the rebels to do it again minister. Five members of the nine-strong committee voted to cut interest Tony Smith, the late political editor of rates last month, governor Mervyn King was with the three who the Sunday Express, was blissfully CLARKE: Grace under pressure Picture: REUTERS thought a cut unwise. And, while debate is to be encouraged, over- unaware of exactly how far advanced Lith- ruling the boss undermines his rule. gow’s condition was but found out imme- away and persuaded to call it a night. introduced himself as if he was a com- King will surely have words to say at this week’s two-day meeting diately after introducing the two men. The next morning Lithgow awoke with plete stranger. therefore – and lay down the law, albeit the law of economics. Lithgow’s opening foray was: “What no memory of the encounter and all “I know who you are,” said a baffled The dilemma for the whole committee is that retail spending has the f**k are you going to do about the might have been well if the news desk Clarke and, as Lithgow bathed in pride at supported the economy in recent years, buttressed by a strong hous- health service?” “What do you suggest I hadn’t chosen that day to ask him to get a being recognised by a Cabinet minister ing market. Now spending, like house prices, is slowing or even do?” was Clarke’s deft response. Lithgow quote from Clarke for a story the medical he thought he had never met, proceeded falling. Lower interest rates would stimulate consumption, even if it replied: “Looking at it in the round, correspondent was working on. to sportingly provide the necessary quote. did so by encouraging us to borrow more, and it might also revive the you could f**king well resign!” Bearding Clarke on the “It was only a week later that Tony flagging housing market, recreating the feel-good factor. Reduced Clarke’s bag carriers reeled in seafront as he rushed to the reminded me of what I had said that rates would also certainly be welcomed by British industry, which shock and Lithgow was quietly led conference hall, Lithgow night,” confides a sheepish Lithgow. regularly repeats demands for cuts like an excited parrot. A cut would not be welcomed by Britain’s savers, of course, but it is not their welfare that concerns King. When the Bank was put in The highest one we’ve had the company’s head office in San Ramon, charge of interest rates it was given one task and one task only – to Battle over bulge is from a punter who’s California: “I would say, Mr O’Reilly,” she control inflation. And inflation is at an eight-year high and will betting £50 a pound.” admits, before adding gamely, “but that’s exceed the government-set target. NO City worker should spend all his just me. I think the general consensus is Inflation can be an unfortunate side effect of a booming economy, time mulling over the consequences Dave. I’m just old-fashioned.” Spoken like but it should not be happening now. Rising prices and slowing of the soaring price of Brent Do-gooder Dave a true spin doctor. growth is the worst of both worlds and if allowed to continue could crude and Old Mutual’s produce stagflation. While lowering borrowing costs should stimu- bid for Skandia, so it’s CHEVRON chairman late growth, it could push inflation higher still. King will this week reassuring that there and chief executive remind the dissidents on the rate-setting committee where their has been a healthy David O’Reilly has RIVER RAT duty lies. It is for Gordon Brown to boost the economy, the Bank’s job take-up for Sporting put his name to one is to hold down prices. Index’s book on the of those do-gooding THE LAST WORD weight of Britney mission statements Spears’ baby, due that bosses of land- SLOW PROGRESS ON SOMERFIELD this month. grabbing oil compa- SHAREHOLDERS in News Corp discov- IT IS seven months since Somerfield revealed it had received a bid Sporting Index nies feel the need to ered last month that they had paid approach, but shareholders in the supermarket group are still wait- (SI) has set the bar advertise in the press their chairman and chief executive ing to see an offer, never mind the money. 1 at 7 /2 lbs and the every so often. Rupert Murdoch a whopping $18.9m If ever there is a sector that requires rattling, it is supermarketing. punters are pil- Interestingly, he (£10.26m) bonus in addition to his Tesco’s skills in management and marketing mean it dominates food ing in. “People signs off the ad $4.5m (£2.4m) salary in 2004-5. And retailing, leaving the so-called competitors to squabble among them- are going higher in the current why not? The man’s a genius after all. selves. Even Asda’s parent, the mighty Wal-Mart, with a 16 per cent rather than issue of the Or is he? In the very same week that UK market share, complains it cannot compete with a market leader lower because Economist, news broke of Murdoch’s bonus wind- that has almost double the sales. In this race, Somerfield is an also- her stomach as “Dave”. fall, the oil price touched a high of $70 ran that can only gain from an injection of new capital, talent and looks so big,” says So is he a barrel. enthusiasm. SI’s Bill Esdaile. really that And who said this before the start of So what has held up the bid since February? Usually the Compe- “When the informal the Iraq war: “The greatest thing to tition Commission is the guilty party. Wm Morrison expressed tabloids printed in the come out of this for the world economy, interest in Safeway in January 2003 but could not buy it until pictures of her office? if you could put it that way, would be March 2004, thanks to the regulator, and having demanded the looking enormous Over to $20 a barrel for oil.” Er, you’ve guessed resale of some Safeway stores, the Commission is still considering on a yacht, a lot Britney: big baby bets Picture: REX Natalie in it, media’s foremost business genius. whether Somerfield can buy them. It could be 2006 before that more started betting. media relations at deal is complete. This time the culprit blocking a supermarket shake-up is David Norgrove, the new pensions regulator — an office that did not exist when Somerfield first announced its approach, but which is now the most powerful force in UK takeovers. For any company with a pension scheme in deficit (and that means almost every company) Norgrove has the power to block any material corporate change – including a bid. So, while Somerfield could solve its pension problem at its own pace if it remains independent, Norgrove expects a buyer to fill the deficit as soon as possible and he has spent the summer negotiating an elimination timetable with the bidders. Only now can those bidders – two rival consortia – prepare their offers, but any hopes of owning Somerfield before Christmas are dashed. Meanwhile, Tesco gallops even further into the lead.

ON A WINNER AT THE ST LEGER THE patron saint of share buying got it wrong this year. The stock market maxim is to sell in May and go away until St Leger Day. The St Leger will be run at Doncaster this week – even though the saint’s day is not until 2 October – but it’s already too late for this year’s stockmarket rally. The FTSE 100 has risen by 10 per cent since May. If you didn’t sell, you’ll have winnings to stake at Doncaster. 10 MARKETS CITYA.M. MONDAY 5 SEPTEMBER 2005 WORLDWORLD MARKETS MARKETS

The London Report World Stock Markets

CLOSE 4.30PM GMT continued to warm to the confec- tionery group's plans to sell its strong run for the FTSE 5400 10480 12600 100 Index came to an end European drinks business. on Friday, despite the lat- Among the energy stocks, Shell 5350 10460 12525 Aest round of takeover spec- slipped back 15p to 1882p and BP ulation involving top-flight compa- weakened 3p to 634.5p as oil prices 5300 10440 12450 nies. fell to 68 US dollars a barrel fol- After logistics group Exel con- lowing the release of more reserves 1.84 5250 10420 12375 firmed a bid approach from to deal with the post hurricane cri- Deutsche Post on Thursday, indus- sis in the United States. 5200 10400 12300 trial gases firm BOC found itself in Outside the top flight, pubs chain the spotlight following rumours JD Wetherspoon fell 4%, or 12p, to Mo Tu We Th Fr Mo Tu We Th Fr Mo Tu We Th Fr that German chemicals group BASF 279.5p after announcing a further was on the prowl. fall in profits and revealing that 2004/05 BOC shares rose 4% or 44p to like-for-like sales dived by 1.7% in Index Country Close Change High Low 1128p, but it was not enough to lift August, greater than the 0.6% FTSE 100 United Kingdom 5326.80 -1.70 5377.50 4538.00 the Footsie as a whole, which drop seen over the past year. FTSE AIM all share United Kingdom 1110.10 +6.60 1166.80 882.70 closed 1.7 points lower at 5326.8. Two other high-profile second- FTSE Eurotop 100 United Kingdom 2559.02 -6.60 2604.32 2133.32 The FTSE 250 Index, which had tier stocks fared better with glass Nikkei Japan 12600.00 +93.03 12506.97 10659.15 reached a record high the previous maker Pilkington ahead 7p at Hang Seng Hong Kong 15221.89 +78.14 15466.06 12818.10 night, slipped 6.2 points to 7792.3. 139.5p and car rental firm Avis DAX Germany 4837.81 -5.13 4990.57 3851.22 The weaker session, which was Europe up 10% or 5.5p to 58.5p. ISEQ Ireland 6743.37 +49.10 6810.94 5562.83 blamed on a rare fall for oil prices The latter benefited from better- CAC-40 France 4404.95 -19.20 4527.11 3609.06 and a lacklustre session for stocks than-expected results on Thursday, in New York, came after a buying while Pilkington continued its spree had helped the Footsie to rise Currencies by more than 100 points since week-long rally as the perception Tuesday. of the firm as a takeover candidate BOC was followed on the risers grew stronger. board by Scottish Power - up 13p to Supermarket chain Somerfield 1.81 1.48 202 525p - as some traders aired the did not suffer an adverse reaction view that it could also be a to a competition ruling that said it 1.82 1.47 201 takeover target now that it was in must sell a dozen stores recently the process of selling its US arm acquired from rival Morrisons. 1.80 1.46 200 PacifiCorp. Shares rose a penny to 199.5p Cadbury Schweppes was 8.5p because they are supported by 1.78 1.45 199 higher at 569.5p after investors ongoing takeover talks. 1.76 1.44 198 Mo Tu We Th Fr Company Spotlight Mo Tu We Th Fr Mo Tu We Th Fr POUND DOLLAR JD Wetherspoon announced a fur- 340 at Close Change *1Mth Ago at Close Change *1Mth Ago ther fall in profits on Friday and WETHERSPOON revealed that trade had been tough at 310 Dollar 1.8401 +0.0104 1.8296 Pound 0.5435 -0.0031 0.5466 those pubs where it had banned smok- Euro 1.4669 -0.0004 1.4673 Euro 1.2546 +0.0077 1.2470 ing. 280 Yen 201.9200 +0.7600 201.1600 Yen 109.7750 -0.1700 109.9450 The group, which operates 36 of its

655 pubs as non-smoking outlets, 250 achieved annual underlying profits of Tourist rates Share price (pence) #46.1 million, a drop of 15% on a year 220 earlier. Mar 02, 2005 Sep 02, 2005 Australia...... 2.3200 ...... dollars Norway...... 11.1700...... krone Canada...... 2.1164 ...... dollars Singapore ...... 2.9321 ...... dollars Major Movers Cyprus ...... 0.8135 ...... pounds South Africa...... 11.0900...... rand Denmark...... 10.6600...... krone +/- +/- Sweden ...... 13.3400...... krona Stock Price Day 5 Day Stock Price Day 5 Day Egypt...... 9.5049 ...... pounds Old Mutual 14114 -314 +514 Switzerland...... 2.2058...... francs BOC Group 1128 +44 +90 Euro...... 1.4214 ...... euro 14 12 34 Scottish Power 525 +13 +2912 ITV 114 -2 -4 Israel...... 7.5637 ...... shekels Thailand...... 69.2100...... baht Land Securities 1457 +36 +57 Intercontl Htls 735 -15 -312 Hammerson 930 +21 +51 Carnival PLC 2786 -53 -126 Japan...... 197.5900...... yen Turkey...... 2.3697...... new lira 1 National Grid 53712 +1012 +1212 Whitbread 959 2 -18 -29 New Zealand...... 2.4878 ...... dollars USA...... 1.7930 ...... dollars AstraZeneca 2608 +48 +129 Cable & Wireless 14834 -2 Johnson Matt 1162 +21 +39 Vodafone Group 150 -2 +34 3 1 Diageo 81812 +1312 +2412 Reuters Group 360 -4 4 -5 4 Morrison (Wm) 18412 +3 +34 Kingfisher 24712 -234 -8 ICI 29614 +412 +1014 Aviva 60812 -512 +4 The New York Report

AMERICAN investors will get a look at Street that the Federal Reserve could October petrol settled down 22.53 figures in this holiday-shortened week temporarily halt its rate hikes in an cents at $2.1837 per gallon on the New Data that could begin to reveal the true eco- attempt to ease concerns post-Katrina. York Mercantile Exchange. Crude for nomic impact of Hurricane Katrina. Despite moderate losses on Friday, October delivery settled down $1.90 at UK Eurozone Forecasts are that the economy could stocks ended the week higher. The Dow $67.57 a barrel. Base rate 4.5% Refi rate 2.0% be hit by more than $100bn (£54bn). Jones industrial average ended up 0.5 But in Katrina’s wake oil climbed near Inflation (CPI) 2.3% Inflation 1.4% The weekly data on store sales, unem- per cent at 10,447, the Nasdaq $71-a-barrel, and high oil prices not only ployment claims and oil inventories will Composite index rose 1 per cent to 2,141 increase energy costs for corporations, Unemployment 2.8% Unemployment 8.6% take on an added significance as the first and Standard & Poor’s 500 Index gained they also hurt consumer spending on GDP growth 0.5% GDP growth 1.1% signs of how the economy is standing up 1.1per cent to 1,218. non-essential items. to the aftermath of Katrina become Investors will scour weekly American US apparent. OIL PRICES EASE, WORRIES PERSIST chain store sales data tomorrow. Weekly Fed funds rate 3.5% Katrina triggered an energy crunch AMERICAN crude oil and gasoline oil inventory data is scheduled for release Inflation 0.5% information supplied by last week that sent petrol prices well futures plummeted on Friday after on Wednesday and jobless claims data Unemployment 5.0% above $3 -a-gallon and set off flooding the International Energy Agency for the week ending 3 September are due GDP growth 3.4% that devastated New Orleans. The prepared to tap upto 2m barrels per on Thursday. storm’s effect on the economy and signs day of emergency reserves in order to Financial markets are closed today for of slowing growth raised hopes on Wall ease the energy crunch. the Labor Day holiday. CITYA.M. MONDAY 5 SEPTEMBER 2005 MARKETS 11

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Aerospace & Defence Food Prods & Procs Huntsworth 10912 Banking the balance sheet and provide cash for Independent 212 + BAE Systems 32512 -212 AB Food 848 -212 ITV 11414 -212 & finance further acquisitions — or even be hand- Meggitt 313 +2 Anglo-East 20912 Oakhill Group 912 Rolls Royce Gp 343 +212 Cadbury Schw 56912 +812 ed back to shareholders. The market is Pearson 66612 Smiths Grp 91112 -5 Canterbury Fds 11 LLOYD’S underwriting looking for interim, pre-tax profit before Photo-Me 12434 -214 VT Group 34034 -434 Carr's Mill 55812 +1 group Amlin gave the exceptionals of £80m against £74m last Cranswick 607 +7 Quarto 203 -3 Reed Elsevier 52312 +12 market guidance last month that its time, with the dividend raised to 6.6p AIM Devro Intl 12612 +34 Reuters Grp 360 -434 Bíham City 23 Fyffes 17434 +114 first-half, pre-tax profit will be at least from 6.3p. 12 12 3 1 Scot.Radio 1099 +6 Charlton Ath 28 -112 Nthn Foods 150 4 -1 4 14 14 £120m. But the market will be looking 1 SMG 95 - 12 Richmond Fds 620 - 2 Churchill China 176 +1 14 3 1 Sportswd Med 5 today for guidance on how Hurricane INTERTEK Group, the testing and 14 Sygen Intl. 50 4 +1 4 Clipper Vent 20 +3 14 1 3 St Ives 388 -3 12 Tate & Lyle 458 2 -3 4 Katrina will affect the second-half result. inspection specialist, said in June it is Coburg 6 Tarsus 14012 1 Uniq 14712 -12 Colefax 123 2 UlsterTV 456 -1 Amlin had already said that its full-year performing well but warned that the 1 Dawson Intl 9 2 1 1 Forestry & Paper Utd Business 567 2 +4 2 result will depend on the affects of the cost of expanding in China will outweigh 1 Ensor 36 2 VTR 3012 +1 1 hurricane season. the benefits in the first half and that the James Halstd 62712 -5 Cropper J 178 2 -1 WPP 567 -1 Millwall dollar’s weakness against sterling will General Retailers Montpellier 3234 Mining SWISS Life will today report flat-to- reduce its reported profits in the period. Nichols 20912 +6 Austin Reed 120 Anglesey Min 12 -18 slightly-higher first-half net profit, with Analysts are forecasting first-half, pre- Planit 24 Blacks Leisure 41714 -314 Lonmin 1218 +20 1 strong French growth offset by a tax profit at £40m, up from £38m, with Preston NE 110 Boots 616 2 Rio Tinto 1990 -12 RAM Inv 5212 Carpetright 966 +6 tougher comparison in Germany. the dividend hiked 10 per cent to 3.7p. RDF Group 41 Clinton Cards 77 Oil & Gas Also, strict rules on Swiss pensions Dixons Grp 14934 -34 Tolent 224 +3 BG 50734 +1 3 1 returns are hampering profits in the Tottenham H 4612 -1 FIndel 523 4 -8 4 Dragon Oil 17434 -1 Leisure 1 12 12 home market. Net profit is seen at Transport Sys 8 4 GUS 907 +2 ENI Lasmo Plc 45 -2 1 1 Young A 1850 +1212 Hse Of Fraser 110 4 + 4 Premier 830 -5 SFR319m-SFR365m (£140.8-£161.11m), JJB Sports 17834 -114 Royal Dutch B 1882 -15 compared to SFR343m last time, while BETTING chain Automobiles 1 3 Kingfisher 247 2 -2 4 Tullow Oil 223 +2 14 12 premiums seen totalling SFR9.2-SFR9.6 William Hill will today Avon Rbber 214 +12 MFI 116 + Caffyns 815 Moss Bros 103 Personal & House Prods bn, up from SFR8.9bn. reveal first-half, pre-tax 1 1 3 Mothercare 329 +2 2 Lookers 377 2 +8 4 Crieghton 314 profit fell to £107m from £118m: though Next 1499 -1 Reckitt Benck 1727 +19 ITALY’S Banca Intesa’s second-quarter the year-ago figures were inflated by the Banks Signet 10512 -134 Swallowfield 79 Smith WH 365 -112 figures are expected today to show bookie’s windfalls after rank outsider Alliance & L 869 +612 Pharmaceuticals Barclays 55712 +112 Health gross revenues rising enough to offset Greece won the Euro 2004 football Brad&Bingley 32312 -14 Alizyme 10914 +14 an estimated ¤100m (£68m) in addi- championship and favoured horses Egg 106 -1 Bespak 53412 -2 Alli Unichem 821 +5 1 1 tional provisions for a new batch of legal tanked at the Cheltenham Festival. HBoS 869 -1 Care UK 401 2 -3 4 AstraZeneca 2608 +48 HSBC 885 -1 Celsis 17812 GlaxoSmKline 1343 -1 claims over the Parmalat collapse. Barring surprises, the market will scan Ferrais Grp 105 +3 Lloyds TSB 46512 +7 M.L. Labs 2512 Net profit will rise to ¤533-¤600m from the results statement for clues about Isotron 621 -12 Northern Rock 81312 +512 Vernalis 6312 -14 ¤458m previously, with gross revenues future strategy, particularly whether the Ryl Bnk Scot 1617 -13 Medisys 4 - Smith & Nep 537 +7 Real Estate up as high as ¤2.6bn from ¤2.4bn. The company will return cash to sharehold- Beverages Whatman R 267 +712 Br Land 900 +712 bank is expected to reiterate its full-year ers. The market is looking for at least a Barr AG 1003 +1 Household & Textiles Brixton 383 +1012 guidance of ¤2.2bn excluding capital £150m payout, despite the fact the Diageo 81812 +1312 CLS 480 +2 1 gains, up from ¤1.8bn last year. group shelled out £504m in May for the Airsprung 23 +1 2 1 Scot New 46614 +334 DTZ Hldgs 301 +5 2 Alba 398 +12 Gt Portland 37112 +612 Stanley Leisure chain. Prior to that, Hill Chemicals Alexandra 125 Mucklow AJ 407 +4 had planned to return £453m to share- Amstrad 14514 -14 OEM 19 BOC 1128 +44 Pittards 15 -1 Construction holders after scrapping plans to expand Slough Ests 55412 +512 Delta 12534 Victoria 215 its British casino business. Elementis 98 55 -34 Town Centre 371 +22 & property ICI 29614 +412 Insurance Software & Comp Servs Yule Catto 239 +5 INVESTORS in Travis JardLloThomp 400 -134 Maisha 1 1 1 Perkins PLC will be Con & Building Matl Royal & Sun 92 2 - 4 Telme Group 38 Media hoping for an update on the newly- Baggeridge 167 Investment Companies Spec & Other Investment Barratt Dev 700 -812 acquired Wickes DIY chain when the SOLID, half-year num- 3i 72112 +712 BPB 731 -1 IFX 123 builders’ merchant announces its interim bers are in the bag at Alliance 3012 -6 Schroders 87212 +12 BSS 30812 -112 Bankers 30812 results today. Ideal Shopping Direct. Carillion 273 +312 City Merc 19012 Support Services Travis Perkins, which bought Wickes for The independent home shopping TV Costain Grp 4914 +34 F & C Euro 521 -1 12 Crest Nichol 41312 -34 AMEC 349 +6 £950m in February, recently complained channel said in June that interim profits JPMFlem Clav 42314 -34 API Grp 136 +112 Ennstone 3912 -34 it had been hit by a sharp slowdown in were likely to be not less than £3.5m, up Ashtead 13414 +334 Galliford Try 7034 +34 IT Hardware 1 DIY consumer spending, and warned from 700,000 a year ago. Hanson 593 +7 Brammer 163 2 Marconi (New) 280 -112 Bunzl 563 +8 that full-year profit expectations may But analysts warn that the growth rate McCarthy & St 565 -3 3 Vislink 38 4 Compass Grp 24714 -112 McInerney 56212 have to be scaled back. is bound to slow in the second half. DCC 1838 +18 Morgan Sindall 84412 -112 Leisure & Hotels Diploma 640 -5 The company is expected to reveal first- Analysts are looking for £3.7m, with the Pilkington 13912 +7 Aston Villa 373 -512 Hays 13212 +14 half, pre-tax profit of £110-£113m under dividend raised to 1.45p from 1.25p. SIG 67112 +112 1 Taylor Wdrw 319 -4 Celtic 50 2 Interserve 351 +234 the new IFRS standard. Last year’s CHE Grp 50 Westbury 445 -4 Macfarlane 35 GAAP figure was £95.3m. THE impact on Vitec Group’s Broadcast De Vere Grp 60912 -3 12 Wilson Bwdn 1131 -7 Menzies J 611 -2 Euro Disney 6 Rentokil 164 +14 Systems business of the accelerating Wimpey 41714 +3 First Choice 20512 +34 REXAM 51034 +612 Wolseley 1170 +11 roll-out of high-definition TV will be the Fuller 91812 Speedy Hire 69012 +312 Economics Greene King 1336 -12 key to first-half profits growing to £7.2m Electricity Telecoms Services Hilton 31214 -234 from £6.8m last time. 3 British Energy 485 +8 4 1 1 Holidaybreak 615 2 + 2 Cable & Wre 14834 -2 EUROZONE indicators Intl Power 232 Intercontl Htls 735 -15 Vodafone Grp 150 -2 Scot Power 525 +13 will show a slight Mitch&Butlers 376 +414 Scot&SthEner 99612 +1012 Support Newcastle Utd 5712 +12 Tobacco downturn in the out- Viridian 75612 -312 Regent Inns 91 Br Am Tob 1138 +4 look for the services sector as a result of services Electrnc Equipment Restaurant Gp 124 +12 Imperial Tob 1550 +1 rising oil prices. But services will still Stanley 590 3 1 outperform manufacturing. MARKET research Chloride 82 4 - 4 Wembley 557 Transport Laird Grp 339 -1 12 The eurozone Purchasing Managers group Taylor Nelson Whitbread A 959 -18 Air Partner 620 -212 NXT 62 -112 Wolve & Dud 1135 -21 Arriva 571 -8 Index (PMI) for the services sector due Sofres will today announce first-half, Engineering & Mach Life Assurance Avis Europe 5812 +512 today will ease to 53.3 in August from pre-tax profit rising to £32.9m from BAA 615 +2 53.5 in July, as the recent surge in oil £32.4m, with revenue rising to £455m Bodycote 213 Aviva 60812 -512 Brit Airways 280 +2 14 1 1 Charter 332 + Britannic 627 4 - 4 Eurotunnel 1634 -34 prices weighs on confidence. from £446m. Cookson 323 -2 1 1 Prudential 508 2 -1 Exel 1175 -3 2 But this is still ahead of the recent fall in But the slight improvement will mask a Enodis 134 FirstGroup 313 -3 1 Media & Entertainment the manufacturing PMI to 50.4 from patchy performance in its key markets. FKI 106 4 Nat Express 83612 +6 1 1 Molins 162 2 +3 2 Aegis 11612 +12 P&O 319 -34 50.8. Anything above 50 denotes Worldwide, spending on marketing and Senior 57 +1 BloomsburyPb 36314 +314 Simon Eng 5412 expected expansion, but the indices are advertising has been robust, but in July, 1 Tomkins 284 -2 2 Boosey & H 215 Stagecoach 106 -34 3 getting close to the threshold. Taylor Nelson said it expects to grow Weir Grp 369 +4 4 12 Trafficmaster 3834 -14 BSkyB 566 -2 only in line with the average market rate Chrysalis 15614 -34 Food & Drug Retailers Utilities Daily M A 65712 -212 of 4 per cent. That came only two Morrisons 18412 +3 EMAP 816 +5 AWG 925 -2 Engineering months after the company boasted it Sainsbury J 28414 +1 EMI 25834 -5 Centrica 25014 +134 would grow faster than the market. Shoprite 13 Entertain Rts 2812 Kelda 69012 +7 Somerfields 19912 +1 Eurom Inst Inv 40612 +512 National Grid 53712 +1012 IMI’S sale of its Tesco 328 +1 GCAP Media 306 -134 Pennon Grp 1045 +11 Polypipe building mate- RECRUITMENT specialist Robert Thorntons 17012 HaynesPub 380 Utd Util 64912 +8 rials division will be Walters will report first-half, pre-tax centre stage when the engineering profit of £4.0m, up from £3.4m, with group announces its first-half results the dividend pegged at 1.05p. Commodities this morning. Polypipe has attracted Walters’ growth is expected to mirror Aluminium AI 1610.00 (1630.00) Oil 66.00 (0.00) wide interest from prospective buyers, that of its competitor Michael Page Copper 3834.50 (3597.50) Platinum 897.00 (0.00) including US buyout specialist Castle recently, though Walters is less exposed Gold 443.60 (446.30) Silver 381.92 (0.00) Harlan, and could fetch up to £300m. to the strongly growing European Lead 905.25 (867.25) Tin 7137.50 (7025.00) Proceeds from a sale would strengthen market. Nickel 15122.50 (14912.50) Zinc 1384.00 (1399.75) 12 EQUITIES CITYA.M. MONDAY 5 SEPTEMBER 2005

TOP FIFTY CITY

HEY are the men and women who can make or break compa- Tnies. Investors avidly ANALYSTS read their recommendations. And chief executives quake in their boots when they issue a ‘sell’ note on their stock. But the thousand or so analysts who work in the City of London are, in the rather main, anonymous workers who produce than on their buy-and-sell share recommenda- sector mainstream tions with little credit. would be stocks. Until last That is, until now. CityA.M. today one of the two year hardly anyone was unveils the top 50 analysts who scruti- Frenchmen among our interested in small- and mid-cap nise UK-based shares. top analysts? independent explorers — most analysts Here is CityA.M.’s roll-call of the City’s Of the equities analysts who cover Paris-based Armel Coville works at considered them too peripheral to fol- UK stocks, the vast majority are based in tiny boutique Oddo Securities and yet low. But Thomson turned this to his the City. managed to outperform every analyst in advantage. best equities analysts. They consis- And after extensive research, we have the City of London who was casting Though he was helped in achieving dug out the top 50. In addition, we have their eye over the retail sector on their his poll position at the top of the league highlighted key sectors, which include own doorstep. table by runaway oil & gas prices, tently outperform their peers with banking and oil & gas, pulling out the Of course50 some things come as no sur- Thomson comprehensively out-per- top analyst who has followed that sector prise. The list is overwhelmingly male. formed other analysts by picking out over the past 12 months. There is just one woman among our sec- Cairn Energy, an upstream oil explo- their share recommendations, often Using analysis from RATE, which pro- tor-toppers — Sue Cox of ABN Amro — ration company, while his peers were vides a quantitative measure of equity although another woman, Elizabeth more cynical. because they have focused on niche research, we have uncovered a few sur- Klein of Baird is in the top 50. Cairn made major discoveries in the prising results. On a positive note the list of analysts Indian state of Rajasthan last year. Its With a couple of exceptions the ana- proves that women are finally making it Mangala field alone is said to have areas, or because they are not afraid lysts we have pinpointed are not the peo- into the decision-making level in the 1.06bn barrels of oil. Even better, the ple you will have seen quoted in the Square Mile. finds are on land Cairn picked up from press — these men and women repre- What all of the equities analysts have oil big-boy Shell for an absolute song. to pick out stocks others consider to sent the undiscovered talent of the City. in common is that they have beaten Until today, Thomson was unaware he You have probably heard of James Eden, their peers on buy/sell recommenda- topped our poll. And he is modest about Dresdner Kleinwort Wasserstein’s top tions — an objective test that we consid- his personal success in stock-picking, be too small or unfashionable . banking analyst, who risked the wrath of er is the best measure of their ability. saying only that “we got quite positive Fred ‘The Shred’ Goodwin when he called Top of our table is ABN AMROs Finlay on oil prices. In March last year we were the chief executive of Royal Bank of Thomson, an oil and gas man. one of the first to upgrade.” Helen Power reports. Scotland a megalomaniac last month. Like many of our best performing ana- Thomson and the other analysts that But who would have thought that the lysts, Thomson has made money for his we showcase below provide a snapshot best analyst for the high profile retail clients by focusing on a niche area of some of the best of the City’s talent. Battle of the banks

The strongest performing banks in equity strategy and smaller companies our survey were ABN AMRO and research. The small companies expert- Dresdner Kleinwort Wasserstein. ise could have proved crucial, because ABN has more analysts at the top analysts who tipped more obscure of their sector than any other stocks tended to come out well. house. There has been some ABN’s closest rival, DrKW has upheaval in the bank’s equities just four analysts who top our cho- research department over the last sen sectors, but DrKW has more year. One of the analysts it lost was analysts in the top 50 (see below). Jonathan Paul, the best-performing While ABN has 10, DrKW has financial services analyst according racked up a whopping 13. The two to our survey. But the bank still has were miles ahead of their closest six analysts who top their sector. rivals, Deutsche Bank and The bank is highly rated for economic, Citigroup Smith Barney.

The pie chart OTHER (right) shows which banks have the largest DRESDNER KW proportion of top 50 analysts in our survey DEUTSCHE BANK

(Left) ABN AMRO Photo: ABN AMRO Alex Segre/REX CITYA.M. MONDAY 5 SEPTEMBER 2005 EQUITIES 13 Picture: NEVILLE ELDER/CITY A.M. NEVILLE ELDER/CITY Picture:

The best of the best: Finlay Thomson, ABN Amro

Oil and gas cap upstream oil and gas companies Thomson’s top tip was Dana “There has been a structural shift 0.70 rather than giants such as BP. Petroleum, one of the strongest-per- in oil prices and oil asset prices,” says Analyst’s performance Name: FINLAY THOMSON With oil prices hitting $70-a-bar- forming independent oil production Thomson. “It’s simply cheaper for 0.60 Company: ABN Amro rel last week, calling the direction of companies, but he also had an early the big players to buy up these com- 0.50 Top Tip: Dana Petroleum the energy sector may sound as hard buy recommendation on Cairn panies than actually look for the oil Score: 35.27 as shooting fish in a barrel. Energy, the high-flying oil explo- themselves. Selectively there’s still a 0.40 He admits as much, saying: “Small ration company that rejoined the long way to run.” 0.30 Average analyst performance Finlay Thomson ranks top out of cap oils have gone bananas in the FTSE 100 last month. Thomson believes that oil prices 1,000 City analysts, and he is also the last few months off the back of oil And the future looks pretty rosy will fall from the unprecedented lev- 0.20 highest scoring analyst in the prices.” But he has comprehensively for Thomson because the big boys els we’re seeing at the moment, but 0.10 volatile oil and gas sector. outperformed others in the sector now want to take over many of the he thinks the correction will be to 0.00 Like many in our top 50, Thomson since January 2004, falling behind companies he covers, which is push- $45- to $50-a-barrel rather than the Jan 04 Apr 04 Jul 04 Sep 04 Dec 04 Apr 05 Jul 05 Sep 05 Dec 05 covers a niche area, following small- only last July and this February. ing up prices even higher. pre-2000 levels of $25-a-barrel.

HOW THE ANALYSTS WERE MEASURED Technology ny’s integral brand strength. Telecoms On the leisure side, Ainley's choices were the We have picked out key sectors, so not every sector is Name: Richard Winslade complete opposite. Name: Gareth Jenkins covered. Not every analyst at the top of the sectors we Company: Dresdner KW Steady-as-she-goespub groups Greene King and Company: Deutsche Bank have picked out is in the top 50. This is because the Top Tip: Spirent Wolverhampton & Dudley provided a good con- Top Tip: O2 more obscure the stock, the better analysts tend to score. Score: 24.01 trast to his more risky travel tips. Score: 20.1 Analysts’ scores are based entirely on their buy/sell 1.40 Ainley joined DrKW at the beginning of 2001 Analyst’s performance having previously been a fund manager at Isis Deutsche bank’s Gareth Jenkins is top of the recommendations as compared to all other analysts 1.20 who covered the same stocks during the period 1 (now part of F&C). He heads up the bank’s UK table for telecoms on the back of a buy O2 tip; he 1.00 January 2005 to 29 August 2005. smallcap team and also makes our overall top 10. also tipped sell BT Group. The data was prepared by RATE, which provides 0.80 Jenkins specialises in UK telecoms stocks and a quantative measure of equity research. 0.60 Insurance has been in the field for 10 years, first at a hedge Average analyst performance 0.40 fund and then as a senior analyst at the bank. The scores are based on the average of top analysts’ Name: Andrew Crean scores, measured against the performance of other ana- 0.20 Company: Citigroup Smith Barney Chemicals lysts in their sector. 0.00 Jan 04 Apr 04 Jul 04 Sep 04 Dec 04 Apr 05 Jul 05 Sep 05 Dec 05 Top Tip: Britannic Group The graphs are based on average share recommenda- Score: 15.5 Name: Themis Themistocleous tions for the sector from other analysts between January Winslade came top of class for tech stocks and Company: UBS 2004 and 5 August 2005. Our analysts’ recommenda- also features at number 5 in our analyst top 50. Crean’s top tip was Britannic Group, a smaller Top Tip: HBOS tions are plotted against those of their peers. He comprehensively outperformed the market stock that Smith Barney managed to pick out Score: 7. 3 7 between January 2004 and the end of August this where others failed. Banks year (see graph). Only in April this year did he fall However, he readily admits that he isn’t all-see- Themistocleous covers the chemicals sector and below the analyst average. ing — he missed out on one of the biggest movers his tip of the year was ICI. Name: James Eden His top stock tip was Spirent, a mid-cap IT of the year, Friend’s Provident. One of the many South Africans in the City he Company: Dresdner KW development company. “Most people started the year thinking that has been at UBS for almost ten years. He joined Top Tip: HBOS He joined the bank at the tail end of 2000, just the sector would rise gently, but in actual fact it the bank in 1995 when Warburgs took over Score: 6.54 in time for the dotcom bust. has fallen gently,” says Crean. South African outfit JD Andersen & Co. Crean has spent a lifetime in the insurance Some would say James Eden is a man with Travel and leisure sector, racking up 16 years of service. He was at Construction and materials a death wish. He hit the headlines last month Greig Middleton before joining Smith Barney. when he called the Royal Bank of Scotland Name: James Ainley Name: Christopher Grant chief executive, Sir Fred Goodwin, a ‘megaloma- Company: Dresdner KW Utilities Company: ABN AMRO niac’. Top Tip: First Choice Top Tip: BPB industries The altercation happened at an analysts’ meet- Score: 22.98 Name: Peter Atherton Score: 27.15 ing when Eden questioned Goodwin’s decision to Company: Citigroup Smith Barney buy a sizeable stake in the Bank of China — some- James Ainley made it onto the list by tipping Top Tip: International Power 0.80 0.70 thing the DrKW man believed his investors unfashionable travel companies, specifically First Score: 9.91 Analyst’s performance viewed as nothing more than stake-building. Choice and Lastminute.com. 0.60 Fred ‘The Shred’ Goodwin is not a man to be On First Choice, which was his top tip, he says: Atherton is co-head of the bank’s pan-european 0.50 trifled with. It was rumoured that when he “It has seen a substantial share price re-rating on utilities team and his top tip was International 0.40 heard Eden’s comments he muttered “shoot the back of what has been a good holiday mar- Power. 0.30 Average analyst performance him” under his breath. ket. I felt it was undervalued a year ago because Unusually for an analyst he spent a short spell 0.20 When he is not courting danger, Eden is gener- the market was factoring in too much risk.’’ in government, doing a stint at the Cabinet 0.10 ally bullish on the RBS. But his top tip last year He tipped Lastminute in advance of its recent Office in 1987. He also worked at the National 0.00 was another Scottish bank, HBOS. takeover, which he feels was based on the compa- Grid Group following its privatisation. Jan 04 Apr 04 Jul 04 Sep 04 Dec 04 Apr 05 Jul 05 Sep 05 Dec 05 14 EQUITIES CITYA.M. MONDAY 5 SEPTEMBER 2005 ‘All these analysts have beaten their peers on buy/sell recommendations’

Number two in our overall survey, Grant beat Health He covers just three UK stocks — Kingfisher, Personal and household other analysts in the construction sector which was his top tip — plus Dixons and Kesa. throughout 2005 (see graph). His top tip was Name: Nigel Birks Unsurprisingly in a sector that has struggled Name: Sue Cox BPB industries. Company: Dresdner KW recently, all his recommendations were sell. Company: ABN AMRO Top Tip: Cambridge Antibody Technology “We had anticipated what would happen in Top Tip: Pace Micro Basic resources Score: 17.32 terms of the slowdown in the property market Score: 24.23 and have been cautious on UK retailers for some Name: Alain William time. We moved to a negative last October,” says The solitary woman among our analysts, Cox 0.70 Company: ING Financial Markets Analyst’s performance Coville. runs ABN AMRO’s electronics and IT smaller Top Tip: Corus Group 0.60 Coville also covers German stocks, but he is companies team. Her top tip was Pace Micro, a Score: 15.7 0.50 gracious enough to admit that conquering digital TV company that makes set top boxes. 0.40 Germany has been much harder than conquer- 0.40 0.30 ing London. Average analyst performance “Germany has been more difficult,” he says. Food and beverages 1.00 Analyst’s performance 0.20 “There’s been strong rally there recently and 0.10 0.60 I’ve missed it.” Name: Julian Hardwick 0.00 Company: ABN AMRO Jan 04 Apr 04 Jul 04 Sep 04 Dec 04 Apr 05 Jul 05 Sep 05 Dec 05 0.20 Media Top Tip: Associated British Foods Average analyst performance Nigel Birks tops the healthcare table and com- Score: 11.09 -0.20 prehensively outperformed his rivals over 2004, Name: Patrick Houston -0.60 only slumping in December. His top tip was Company: ABN AMRO 2.00 Jan 04 Apr 04 Jul 04 Sep 04 Dec 04 Apr 05 Jul 05 Sep 05 Dec 05 Cambridge Antibody Technology. Top Tip: Aegis Group He leads a large and mid cap pharmaceutical Score: 11.66 0.80 team which has been very bearish 0.60 since early 2001, only becoming more positive Marketing analyst Houston says he picks up a Analyst’s performance The first of two Frenchman on our list, Paris- in February this year, when Birk’s rating lot of information close to home by “going to 0.40 based William has outperformed the market for slipped. bars in Soho” or “just talking to friends who live much of the last 20 months, only dipping bel- Birks joined in 2000, but started his working in Chiswick.” 0.20 Average analyst performance low the analyst average between December life as an army officer. But he had to look much further afield for his 0.00 2004 and March 2005 (see graph). favourite stocks of the year — Spanish TV com- Jan 04 Apr 04 Jul 04 Sep 04 Dec 04 Apr 05 Jul 05 Sep 05 Dec 05 Retail panies Antenna 3 and Telecinqo. Industrial goods and services “We spotted the macro trends early and iden- Name: Armel Coville tified companies with potential. Then we could Name: Richard Rae Company: Oddo Securities say to clients you’ve got to bloody listen to this,” One of five ABN AMRO analysts in our survey to Company: ABN AMRO Top Tip: Kingfisher he says. top their sectors, Julian Hardwick was one of Top Tip: WSP Group Score: 8.68 On British companies his top tip was the very few to beat his peers for the whole peri- Score: 18.89 Retail has some of the most high profile ana- Aegis Group. Houston has been analyst for 16 od (see graph). lysts in the City. The likes of Evolution years flitting between various sectors. But he’s His performance dipped in January, but he Rae heads up the bank’s European Smaller Securities’ Nick Bubb give press comment so now well and truly stuck on media. “The good never fell below the average. Companies team and is an analyst for European often they are almost household names. thing about it is that there’s a large non-public Hardwick’s top stock tip was Associated small cap support service stocks. His top tip was But the top analyst in the sector is a virtually element,” he says. “And you can find out a hellu- British Foods. global consultancy WSP Group. unknown Frenchman from Paris boutique va lot just by chatting to people.” Oddo Securities. “This is revenge for the Olympic Games I sup- pose,” says Coville.

THE RANKINGS City analyst hall of fame

1 Finlay Thomson 11 Andrew Darley 13.03 Domnick Hunter Morgan Sindall 42 Nick Johnson ABN AMRO ING Financial Markets Group NUMIS Dana Petroleum Colt Telecom Group 22 Frederic Van Daele 32 Brian White SVB Holdings ABN AMRO Deutsche Bank 2 Christopher Grant 12 Richard Rae Somerfield Shire Pharmaceuticals 43 Joel Copp-Barton ABN AMRO ABN AMRO Dresdner KW BPB Industries WSP Group 23 Dr Richard Parkes 33 Graeme Summers Stagecoach Holdings ING Financial Markets Brewin Dolphin 3 Mike Bridges, CFA 13 Andrew Crean Antisoma Go-Ahead Group 44 Gerry Gallagher ABN AMRO Smith Barney Deutsche Bank Hanson Britannic Group 24 Ian Spence/Dan 34 Mark Mcvicar Imperial Tobacco Group Ridsdale Dresdner KW 4 Andrew P. Lee 14 Alain William Baird P&O 45 Stuart Gordon ABN AMRO ING Financial Markets Detica Group ABN AMRO Sportingbet Corus Group 35 Greg Feehely Cable & Wireless 25 Patrick Houston Altium 5 Richard Winslade, CFA 15 Craig Sainsbury ABN AMRO London Clubs Int’l 46 Ben Cohen Dresdner KW Smith Barney Aegis Group UBS Spirent BHP Billiton 36 Sam Morton Jardine Lloyd Thompson 26 Julian Hardwick Dresdner KW 6 James Ainley 16 Wayne Gerry ABN AMRO Cable & Wireless 47 Armel Coville ABN AMRO Dresdner KW Associated Brit Foods Oddo Securities First Choice Holidays Lavendon Group 37 Steve East Kingfisher 27 Charles Manso De CSFB 7 Charles Brennan 17 Phil Lindsay Zuniga BAE Systems 48 Elizabeth Klein ABN AMRO ABN AMRO Dresdner KW Baird Axon Group BSS Group Gallaher Group 38 Geof Collyer BTG Deutsche Bank 8 Gareth Jenkins 18 Mark Fielding 28 David Greenall Punch Taverns 49 Jonathan Paul ABN AMRO Smith Barney Dresdner KW ABN AMRO 02 Morgan Crucible Michael Page Int’l 39 John Mackinnon Helical Bar Deutsche Bank 9 Nick Spoliar 19 Clyde Lewis 29 David Pope Xstrata 50 Guillermo Barrio Baird Smith Barney Brewin Dolphin SG Securities Universal Salvage BPB Industries Urbium 40 Ed Wright British American Tobacco Dresdner KW 10 Nigel Birks 20 Julian Easthope 30 Mike Hilton South Staffordshire Group Dresdner KW UBS UBS www.bestequityresearch.com Cambridge Antibody Tech Enterprise Inns Aegis Group 41 Peter Atherton 21 Peter Cooper 31 Alastair Stewart Smith Barney Brewin Dolphin Dresdner KW 9.91 International Power HIGH RETURN. NO INVESTMENT.

Welcome to City A.M. Every weekday we’ll bring you the best mix of business news and compelling lifestyle features. Pick up your FREE copy from our team of distributors throughout the Square Mile and Canary Wharf. 16 SMALL BUSINESS CITYA.M. MONDAY 5 SEPTEMBER 2005 Enterprise TIPPING POINT The moment when the unexpected Nation TRAGEDY THAT GAVE EMMA JONES A BOOST TO

THEY are healthy, wealthy and in business. Baby boomers across the UK are making the most of their physical fitness and property values to launch portfolio careers and start- up businesses in their droves. ADVENTURE Born between the years of 1946 and 1964, the boomers are independ- ent risk-takers who are coming good on the predictions of a thinktank report authored in 2003, announc- ing that 50.5 per cent of boomers would rather be a self-employed entrepreneur than an employee. A glance through the pages of TRAVEL SAGA magazine points to how seri- ous our boomers are about living life on their own terms and working in a Peter Long took an also-ran package-holiday business and way that offers flexibility with financial reward. This month’s turned it into First Choice, Britain’s leading provider of thrills lifestyle feature shows a beaming couple who resigned from their jobs and spills… with a little help from 9/11. Judi Bevan investigates to buy a vineyard and a B&B busi- ness and have had neither the time nor the inclination to look back. HEN planes flew into New vastly outperforming the FTSE All- FIRST CHOICE ON THE UP AND UP As I sit here, writing this piece York’s Twin Towers on Share index as sales and profits raced from a home office in a country September 11, 2001, the ahead. Even this year in the teeth of a 220 town, my two boomer neighbours W immediate effect on the consumer slowdown, sales have risen 200 are respectively running their prop- travel industry was to create mayhem. by 17 per cent to £915m in the first erty and financial advisory business- But something about watching the dis- half, valuing First Choice at more than 180 es, from the very same premises. As aster unfold changed the psyche of peo- £1bn. 160 we pass each other on the stairs, I ple and their attitude to holidays. Long joined First Choice in 1996 ask after them and hear the reply, According to Peter Long, the athletic when it was worth only £300m and 140 “Business is thriving, off to Spain 53-year-old who has re-invented First slogging it out with Thomson, Thomas 120 tomorrow for a week with the Choice since he took the helm in 1996, Cook and My Travel in mass-market Price (pence) 100 grandkids.” They are the happiest it has made his customers more adven- package tours to Spain and Portugal and healthiest-looking people in the turous. “Since 9/11 people have re- and working on thin margins. 80 building. assessed what is important to them. “For 45 years the travel business was 60 As a nation, we would do well to Instead of thinking ‘One day I want to all about scale; it was a commoditised encourage more boomers to consid- climb Kilimanjaro, or learn to sail’, business,” he says in his gruff baritone. 40 JAN 01 JUL JAN 02 JUL JAN 03 JUL JAN 04 JUL JAN 05 JUL er going it alone and starting a busi- they thought, ‘I want to do it NOW’. Having worked for Harry Goodman at ness. In truth, we can’t afford the Feeding this new appetite for thrills Intasun and survived its collapse, he To achieve that difference he Sunsail in 1999, which in turn bought alternative. and spills has helped push First realised that, to beat the competition, snapped up a string of specialised trav- the French company Stardust, First Earlier this year the Government Choice’s share price up by more than First Choice had to be different. “We el companies to create a range of Choice became the world’s largest pur- revealed figures showing that unem- 50 per cent to somewhere around the did not want to follow — we wanted to holidays previously found only in small veyor of sailing holidays. It now owns ployment of the over 50s costs the 200p mark since the day before 9/11, lead,” he says. ads in the travel pages. By acquiring long-haul specialist Hayes & Jarvis, UK economy up to £31bn a year. Add to this population trends showing the number of people aged 50 to 64 NEWS BRIEFS rising by 25 per cent over the next 20 years, while the number of 20-to- and 35 in the south-east. VCs bowled over ket. WestBridge Ventures II is India’s 29-year-olds will fall by 20 per cent The research, sponsored by Barclays WOODWORM, which makes the cricket largest fund aimed solely at start-up over the same period, and there is Private Equity and Deloitte, showed the bats used by Andrew ‘Freddie’ Flintoff’ companies. just cause for worried talk as to who value of public to private deals has hit and Kevin Pietersen in will support this ageing community. £4.9bn — already the highest level since the Ashes series, is Leschly in City flop Yet, as one wise 50-year-old FT 2000. Public-to-private deals account for fielding offers from THE stock-market comeback of Jan columnist rightly stated, “the 45 per cent of the value of all deals in venture capitalists Leschly, the former chief executive of answer is obvious: we will support the first half of 2005 compared with 17 after sales of its bats SmithKline Beecham, ourselves — by working.” per cent for the whole of last year. The soared. Although the flopped after his com- Through their work the boomers average deal size is almost £500m com- company is only three pany failed to raise the

have a role to play in coaching the CITYAM Picture: pared to £100m to £200m previously. years old and has just a £15m it planned. D- next generation. Think of the oppor- “Total deal value in the first six handful of workers it makes one in 10 Pharm is chaired by tunity to bring together the com- months of 2005 has already reached of every bat sold in Britain. Leschly and 24 per cent mercial experience, confidence and Capital hotspot £11.3bn compared to £8.2bn over the owned by his venture contacts of the over 50s with the LONDON has topped the league table same period last year,” said Tom Lamb, capital fund. It is now ideas and energy of 14- to 25-year- by having the highest number of buy- co-head of Barclays Private Equity. “Of $200m for Westbridge in talks with alternative investors after olds who are just starting out on outs this year. Research by the Centre this, six of the 10 top deals were public WESTBRIDGE Capital Partners, an City fund managers showed a distinct their enterprising journey. for Management Buy-Out Research to private. This means we are on track Indian venture capital group, has raised lack of interest. Now that would be blooming found there were 42 buy-outs for a record year for public to privates $200m (£108m) for its second fund, to The company needs more cash to marvellous. in London in the first half of the year which look likely to exceed the previous be invested largely in companies tap- fund development work on a portfolio [email protected] compared with 39 in the north-west record of £9.4bn in 2000.” ping into the domestic consumer mar- of early-stage drugs. CITYA.M. MONDAY 5 SEPTEMBER 2005 SMALL BUSINESS 17 becomes expected, where radical change is more than a possibility – it is a certainty. MYTOP5 Picture: REX Picture: Favourite Car: Silver Mercedes

Favourite holiday: Majorca or

Courchevel REX Picture: Picture: REUTERS Picture: Favourite Restaurant: Puerto Pollensa, Majorca

Going places: Peter Long has seen his company’s share price double Picture: Neville Elder/CityAM

Citalia, Flexiski and Crown Blue Line, or hotels, it is the people and their able to touch us in the real world, which has the largest fleet of boats on ‘When we buy a travel expertise,” he says. “If we don’t like the through our shops and call centres.” inland waterways in Europe. way they run the business then we Long’s response to low-cost airlines Adventure enthusiasts need look no business, the most don’t buy it.” was to make First Choice’s planes for further than Exodus, a 30-year old com- A rangy 6ft 3in sailing and skiing longer journeys swisher, with the latest pany offering everything from trekking important asset is not the enthusiast, Long made the unlikely leap in in-flight entertainment, and to give Favourite author: John Grisham in the Himalayas and biking in Turkey from being financial controller of BTR’s them more leg-room in economy than to hiking along the Amalfi coast. For boats or hotels, it is the construction services side to working either British Airways or Virgin. Long, who acquired it almost three with Harry Goodman at Intasun where He has also ordered six of the new years ago, this is the most exciting part people and their expertise. he fell instantly in love with the travel Boeing Dreamliner planes with a range of the business. He says: “There is a industry. “It was the early 1980s and of 8,000 miles for the increasingly pop- huge global market for adventure trav- If we don’t like the way incredibly exciting. I never looked back ular destinations of Mexico and Brazil. el and Exodus has identified a whole they run it, we don’t buy it’ from the first day. Travel is like fashion The only fly in his suncream is the high bunch of businesses in Europe and — it is always changing and you are con- oil price. He says: “Our customers know Australia which we have bought. We stantly looking at new destinations.” the oil price has rocketed so we itemise are now experts in adventure.” He understands the entrepreneurial The internet has also played a key it as a separate surcharge.” Once a company becomes part of mindset from his own experience of role at First Choice. The online business So far, First Choice has weathered First Choice, Long’s strategy is not to building up a business called Sun has grown from nothing three years the consumer downturn. Long says: Favourite integrate but to nurture a separate cul- World and selling it to Thomas Cook ago to 25 per cent of sales. But Long “People will put off replacing a car or sport: ture. “This is not a command and con- for £40m before joining First Choice. doesn’t underestimate the value of the buying a plasma TV screen, but they trol business,” he says. “We have to let “When we buy a travel business, the personal touch. He says: “Holidays are will not put off a new experience.” sailing entrepreneurialism flourish.” most important asset is not the boats emotional and customers like to be That, in his view, is the legacy of 9/11. Entrepreneur leads Asian fortune 100

IT took less than 20 years for Rita and set up her own company called and her mother was a housewife. Sharma to make an eye-watering £95m Worldwide Travel. Sharma, aged 44, said she was inspired fortune out of the five-star holiday busi- Nearly 20 years later Sharma is at the by her parents, who worked long hours ness she founded. helm of a travel empire, which she runs for little reward. Last week her achievements were cel- with her husband. In 2001 the pair “Right from the start I knew I was ebrated at Asian Power 100, which launched an online travel shop, Best At different and had to escape from that marked the “massive contribution” Travel, which had annual sales of world and go out and succeed. I wanted Asians are making to the British econo- £34.9m in 2003 and made a £1.2m prof- to make money,” she said. my. Sharma, who lives with her hus- it. Her combined business interests Other Asians who were honoured at band Rahul in a £15m mansion in now have annual sales of £50m. the Asian Power 100 event included Regent’s Park, is the richest Asian Sharma’s material and business Meena Pathak who is at the helm of woman in London. achievements are all the more remark- Patak’s, the curry empire, and Perwwn Aged 25, Sharma was in a low-paid able considering her roots. Warsi, who set up the Indian food firm job selling flights to the wealthy. She was born in the Punjab before S&A Foods. Instead of settling for a lowly wage, she moving to Britain, where she was A spokesman for the event said that decided to take control of her career. brought up in London’s East End. Asian Britons now provide billions to She left her job, rented a tiny office Her father was a clothes manufacturer the British economy. Girl power: Rita Sharma came tops in the race for richest asian in the capital Picture: REX CITYA.M. MONDAY 5 SEPTEMBER 2005 LEISURE 19 WETSETACTION From white- water canyoning to quad-biking, Full Throttle weekends are all go — and rarely dry, writes Duncan Farmer

HAT does a Monday morning hold for you? A round of meetings and W conference calls? Or will you be careering helter-skelter down a waterfall in the Pyrenees to round off a weekend of paragliding, quad-biking, downhill cycling and gallons of local red wine? Long weekends have changed. Twenty years ago, it was a hotel in the country and a brisk, wet walk in the Cotswolds. Then Ryanair and Into the deep easyJet came along, luring us to dis- cover foreign cities. Now, the over- Make a splash through a natural seas adventure weekend takes us to obstacle course in the aquamarine distant locations and frightens the waters of southern France near life out of us. the Pyrenees. Activities Abroad has been run- ning adventure weekends and course down a mountain river longer breaks since the turn of the using every available means: jump- millennium and its Full Throttle ing, sliding, walking and swim- three-day French trip is among its ming, although on the steepest most popular. The company was descents you will use ropes — and started by Alistair MacLean, a for- you will always get drenched. mer stockbroker. The activities are exhilarating “I worked for a provincial firm and can be dangerous. “Safety is dealing in UK equities and gilts, but our number one priority,” says after six years I got completely fed Alistair. “All our activity providers up, saved frantically and left to are checked. We take copies of all cycle and work my way across That was five years ago and he their qualification certificates and Europe. The trip lasted 11 months hasn’t looked back. Making a splash ensure they are fully indemnified. and when I came home I did a The Full Throttle trip has a capac- France has some of the most strin- degree in business studies with ity of just eight guests, which pro- Sundays are spent in exhilerating gent regulations in the world per- travel and tourism. vides an intimate atmosphere. “It yet dangerous conditions as you go taining to adventure sports (tighter “After graduating with first class tends to be a mix of men and canyoning through water while getting than in Britain) and we ensure they honours, I had a few jobs with inde- women, singles, couples and small soaked to the bone. Pic: REX meet these exacting criteria.” pendent tour operators before real- groups of friends,” says Alistair. The afternoon starts at the ising that there was no “About 60 per cent of people who Accommodation is in a tradition- back, you simply walk off the edge Gorges de la Caranca, which was a way I could work for travel with us are single and it’s a al 18th-century Catalan farmhouse Down of the mountain. The reward is the vital escape route into Spain during anybody but myself great way to meet like-minded peo- in the hamlet of Esposouille high in most awe-inspiring view of the World War Two. Today the region is and told my boss in ple, as the shared activities are the Pyrenees Orientales, the coun- French and Catalan Pyrenees and popular with hikers and two of no uncertain terms great ice-breakers and create try’s sunniest region. Here, Simon hill all Andorra and total silence. France’s most important trails, the to stuff his job.” an immediate common Evans looks after you for three The activities are provided by GR10 and GR11, bring walkers here bond. A newspaper nights in comfortable twin rooms the way French companies, but all instruc- to enjoy the spectacular scenery. gave us a nine out of while his wife Jo cooks the meals, tors speak excellent English. “It is Sunday ends with a relaxing 10 ‘romance rating’ a including the local cassoulet, Saturday part of our philosophy to use local reward, a blissful trip to thermal couple of years ago.” washed down with free local wine. morning’s activity providers for two reasons,” baths at Les Bains de Saint-Thomas. The trip starts gen- But keep a clear head for bike ride is not says Alistair. “They know the rivers, Monday starts as all Mondays tly enough with a Ryanair Saturday morning’s bicycle ride. your average mountains and activities better should: at full throttle along the flight out of Stansted to This is no gentle tour through jaunt but a steep than anyone because this is the mountain trail, astride a quad bike, Perpignan in France. country lanes but a hell-for-leather descent down environment in which they work. tearing through the countryside at descent down the side of a a mountainside And we strongly believe that local breakneck speed. Alistair gets few Pyrenean mountain, stopping only that winds up at suppliers should benefit from complaints. “Our satisfaction rating at the Spanish border. Thankfully, the Spanish tourist visits; that way, we con- is 93 per cent — which isn’t bad in you are excused the climb back and border. Pic: REX tribute financially towards sustain- this day and age.” are returned home for lunch. ing employment in rural areas. The price is £400 per person and Don’t overdo it as the afternoon’s It sounds very ‘right on’ but is includes all activities, meals and paraglide may put a little strain on essential as part of our sustainable airport transfers, but excludes your stomach. With a parachute tourism policy.” flights, which cost £99.70 including and an instructor strapped to your On Sunday you will get very wet taxes from Stansted to Perpignan, — and love every second of it. Start leaving on Friday afternoon and with canyoning through the white returning on Monday evening. waters at Porte Puymorens or, The company also organises On your bike depending on local conditions, in more extreme adventures, ranging Sunbathing could soon be a thing of the warm thermal waters at Thues. from skydiving in Spain to icy the past as more people take to actvi- Alistair describes it as “a wet and adventures in Canada and Finland. ties trips that involve quad-biking over wild waterpark but in a natural rough terrain – most probably to get over environment”. For more details call 01670 789 991 or the stresses of busy urban life. Pic: REX Essentially it is a natural obstacle visit www.activitiesabroad.com 20 REVIEWS CITYA.M. MONDAY 5 SEPTEMBER 2005 Page edited by STEVE JELBERT [email protected] WHAT NOT TO MISS The movies, plays, TV programmes, music and more that you’re going to hear about this autumn

ORGET the summer’s titanic struggle for dub and reggae, while Paul Weller’s As Is Now the Ashes, the year’s real head-to-head will delight people who like adding the letter ‘O’ comes later this month. The arts shouldn’t to posters (think about it). Other returnees Fbe a substitute for war (except with hip- include Franz Ferdinand, Miss Dynamite and hop), but how else to view this month’s battle of Neil Young. In the ‘might possibly release some- the giants? Yes, Katie Melua and Jamie Cullum thing’ category fall The Darkness and release their new albums on the same day. Babyshambles. But all are overshadowed by the As usual the autumn schedule proves that, news of Kate Bush’s first album in 12 years, as ever, something either daft, remarkable or Aerial, due in November. just downright unpredictable will revive your Comedy refugees from the Edinburgh Festival interest in the arts. will get their big (and sometimes only) chance to Take Mike Leigh’s new play, announced sim- play a big theatre at the now regular season for ply as A New Play by Mike Leigh. It’s already sold Perrier award nominees in October. Lovers out a season at the National, simply on that bare of giant books will revel in the doorstopping description. Perhaps it’s already been written qualities of history slabs such as Tony Judt’s too. It starts in a fortnight, after all. history of modern Europe, Postwar (a thousand Equally unexpected is a rash of programming pages) and Robert Fisk’s certain-to-be-con- about royalty. ITV offers a biopic of Charles and tentious The Great War for Civilisation (300 more). Camilla’s romance (following their early, pre- Lovers of camp books will enjoy Of Diana years). The BBC may finally show The The Wall, a collection of 1970s East German fash- American Woman, its long-delayed story of ion (?!) photos. Edward VIII and Wallis Simpson, and for once Yet questions remain. Is Fernando Meirelles’ Anne-Marie Duff plays beyond her real age as film of Le Carre’s The Constant Gardener this year’s Elizabeth I in The Virgin Queen. Channel 4 is, The Outsider? (Apparently, yes.) Why has someone unsurprisingly, interested in hard-living, dead made another version of Pride and Prejudice? (No Princess Margaret. More importantly though, idea.) Will the recipe book Off Duty — Great Chefs Spooks is back. Cook At Home reveal what we all suspect: that it’s The news that Robbie Williams’ next album beans on toast all the way when no one’s look- has a pronounced ‘dub and reggae’ influence ing? (We’ll see.) These and other mysteries Clockwise from top left: Ralph Fiennes stars in new Le Carré adaptation; Kate Bush comes out of retirement; Katie Mellua should strike fear into the hearts of all lovers of should soon be explained. releases new material later this month; Pete Docherty’s Babyshambles might release something new Pictures: REX; CITYAM

RESTAURANT REVIEW by PETER and RICHARD HARDEN IF YOU MUST ... Find something to do with your hands at a gig… AXIS It’s Craft Night 2 at this dingy basement, where every punter receives a (wait for it) sock puppet in kit form. Ex-smokers should be relieved though looking at 1 Aldwych, WC2 tel: 020 7300 0300 the bill (Max Tundra, Luke Vibert) earmuffs might be an idea. A unique rap on the subject of sock puppets is promised. Notting Hill Arts Club, Notting Hill Gate, W11, 7.30pm, £5

Watch a child being ruthlessly exploited by her parents… The Trachtenburg Family Slideshow Players (pictured below) are a unique family act. Mum Tina operates a projector showing slides retrieved from house clear- ances, dad Jason writes and sings songs about them, daughter Rachel, who must be pushing 12 by now, drums and sometimes looks bored. It’s very entertaining, honestly. Soho Theatre, 21 Dean St, W1. 9.30pm, 1-10, 12-17 September. £15.

Buy a book of intellectually justifiable smut When Jonny Trunk (not his real name) ran the fan club of his ‘glamour’ model sis- ter, he found himself reading many, er, imaginative essays from admirers. So far he’s turned this mind-warping experience into a record, a stage show and now a THE book to delight the hopeful lecher inside every man. HEALTHY Dirty Fan Male by Johnny Trunk (Harper Collins, £12.99) Picture: REX MENU See a feel good movie… HAT is the number one sive selection a la carte. The food Who but a 41-year-old virgin isn’t going to feel good about The 40 Year-Old requirement of a decent arrives just at the right moment. It OPTION Virgin? Steve Carell, the brain-damaged Brick in business restaurant? Service turns out that it verges on being dan- Anchorman and David Brent in the US version Whas to be top of the list. gerously interesting – this is about Starter: tomato and pineapple of The Office, finally gets top billing in Service which puts people at their business, remember, so we don’t want gazpacho ease. Service without embarrassingly too many distractions. My guest and I Tomatoes are rich in lycopene, a a comedy more charming than its long pauses. Service which doesn’t get even think it worth the extra calories nutrient known to support prostate title suggests. in the way just as you’re launching for a pudding. We even get to conclude health, while pineapple contains On general release into your Big Point. On this front, Axis our lunch – having discussed all those bromelain, known as a digestive aid. – very neatly positioned between the important questions we met to talk Main Course: steamed sea bass West End and the City in a spacious about – with that great reviewing with egg noodles, Chinese spinach, Buy a record by some modernist basement- looks set to be a cliché, ‘a good espresso’. ginger and roasted sesame seeds old men… personal reference-point for the fore- For a personal-account lunch or Low in fat but high in nutrients. It hardly matters if it’s any seeable future. dinner, one might find the setting – Spinach provides lutein for healthy good or not, and naysayers We arrive, forgetting we’ve booked with its love-’em-hate-’em bold eyes, while sesame seeds are very for three, and when shown such a Vorticist murals slightly chilly. As a rich in calcium. An ideal side order certainly won’t have their table point out (wrongly) that we want mid-priced business restaurant, would be a leaf salad for some extra views suddenly changed. But a table for two. Not even a hint of irri- though, it’s hard to beat! fibre and energy giving magnesium. the release of their first studio tation emanated from our charming Dessert: fresh fruit salad with pas- album of new material since 1997 South African waitress. No guest as yet. sion fruit sorbet means that the Rolling Stones have Newspaper, Sir? Choice of three. Expect to pay around £50 a head Axis has some of the freshest most now ‘been active’ in five decades. The menu quickly arrives. A set- for dinner. The set lunch is a real bargain delectable fruit around, bursting lunch menu with choice sufficient for at £16.75 for two courses. Set menus also with anti-oxidants to leave you I don’t belieeeeve it! all but the pickiest- plus a comprehen- available pre-theatre (5.45pm-7pm). glowing with health. A Bigger Bang is out today on Virgin CITYA.M. MONDAY 5 SEPTEMBER 2005 NEWS 23

SPORT IN BRIEF CHAMPAGNE MOMENT: GARCIA WINS EUROPEAN MASTERS GOLF OMEGA EUROPEAN MASTERS (Crans-sur-Sierre, Switzerland) Final BASEBALL rd (Gbr and Irl unless stated, par 71): 270 S Garcia (Spa) 66 65 71 68 (£193,277), 271 P Gustafsson (Swe) 69 70 68 64 (£128,847), 272 P Casey 67 72 67 66 (£72,596), 273 L Donald 66 72 66 69, G Houston MAJOR LEAGUE: American League: Tampa Bay 3 Toronto 2, NY 65 69 69 70 (£53,577 each), 274 P Fulke (Swe) 69 67 70 68 Yankees 7 Oakland 0, Chicago White Sox 6 Detroit 2, Texas 5 Kansas (£40,588), 275 S Little 69 70 69 67, P Golding 68 73 66 68, 276 J City 3, Minnesota 3 Cleveland 2, Boston 7 Baltimore 6, Seattle 6 LA Spence 71 70 70 65, S O’Hara 70 69 70 67, E Canonica (Ita) 71 68 69 Angels 3. National League: Chicago Cubs 9 Pittsburgh 5, Florida 5 NY 68, P Broadhurst 67 69 71 69, 277 H Stenson (Swe) 70 68 69 70, MA Mets 4, St Louis 4 Houston 2, Atlanta 9 Cincinnati 3, San Diego 6 Jimenez (Spa) 71 69 67 70, 278 D McGrane 68 71 74 65, B Dredge 72 Milwaukee 1, Washington 5 Philadelphia 4 (12 Innings), Colorado 11 68 67 71, 279 A McLardy (Rsa) 69 73 68 69, R Karlsson (Swe) 70 68 LA Dodgers 1, San Francisco 9 Arizona 4. 71 70, J Sandelin (Swe) 65 73 71 70, C Cevaer (Fra) 67 71 70 71, F CRICKET Molinari (Ita) 73 66 69 71, M Lafeber (Ned) 69 74 65 71. MOTOR RACING THIRD ONE DAY INTERNATIONAL Bangladesh 108 v Sri Lanka 106-4 (D A Gunawardene 52). Sri FORMULA 1 ITALIAN GRAND PRIX Lanka beat Bangladesh by 6 wickets. (53 Laps): 1 J Montoya (Col) McLaren 01hr 14mins 28.659secs, 2 F Alonso (Spa) Renault TRIANGULAR TOURNAMENT 01:14:31.138, 3 G Fisichella (Ita) Renault 01:14:49.113, 4 KRaikkonen Zimbabwe 250-10 (C K Coventry 74, Taibu 71) v India 255-6 (Fin) McLaren 01:15:11.888, 5 J Trulli (Ita) Toyota 01:15:45.674, 6 R (Yuvraj Singh 120, M S Dhoni 67no). India (5pts) beat Zimbabwe Schumacher (Ger) Toyota 01:16:28.969, 7 A Pizzonia (Bra) Williams (1pts) by 4 wickets. 01:17:13.612, 8 J Button (Gbr) BAR 01:17:14.615, 9 F Massa (Bra) TOTESPORT LEAGUE - DIVISION ONE Sauber 01:17:15.630, 10 M Schumacher (Ger) Ferrari 01:17:16.666, 11 Northamptonshire 282-7 (D J G Sales 77, U Afzaal 64, A P Davies Ja Villeneuve (Can) Sauber at 1 lap, 12 R Barrichello (Bra) Ferrari at 1 4-53) v Glamorgan 22-1 . No result 2pts each. lap, 13 C Klien (Aut) Red Bull at 1 lap, 14 M Webber (Aus) Williams at Drivers Championship TOTESPORT LEAGUE - DIVISION ONE 1 lap, 15 D Coulthard (Gbr) Red Bull at 1 lap. Gloucestershire 105 (Shoaib Akhtar 6-16) v Worcestershire 106- Standings: 1 F Alonso (Spa) Renault 103pts, 2 K Raikkonen (Fin) 2 (C H Gayle 53no). Worcestershire (4pts) beat Gloucestershire McLaren 76, 3 M Schumacher (Ger) Ferrari 55, 4 J Montoya (Col) by 8 wickets. McLaren 50, 5 J Trulli (Ita) Toyota 43, 6 G Fisichella (Ita) Renault 41, 7 R Schumacher (Ger) Toyota 35, 8 R Barrichello (Bra) Ferrari 31, 9 N TOTESPORT LEAGUE - DIVISION TWO Heidfeld (Ger) Williams 28, 10 M Webber (Aus) Williams 24, 11 J Derbyshire 88( T J Murtagh 4-14) v Surrey 89-2 (J G E Benning Button (Gbr) BAR 24, 12 D Coulthard (Gbr) Red Bull 21, 13 F Massa 53). Surrey (4pts) beat Derbyshire by 8 wickets. (Bra) Sauber 8, 14 J Villeneuve (Can) Sauber 6, 15 A Wurz (Aut) TOTESPORT LEAGUE - DIVISION TWO McLaren 6, 16 T Monteiro (Por) Jordan 6. Constructors: 1 Renault Kent 140 (M A Carberry 63) v Durham 144-2 (J P Maher 70). 144pts, 2 McLaren 136, 3 Ferrari 86, 4 Toyota 78, 5 Williams 54, 6 Durham (4pts) beat Kent by 8 wickets. Red Bull 27, 7 BAR 25, 8 Sauber 14, 9 Jordan 11, 10 Minardi 7. TOTESPORT LEAGUE - DIVISION TWO RUGBY LEAGUE Leicestershire 253-8 (A Habib 65no, D L Maddy 54) v Yorkshire 120. Leicestershire (4pts) beat Yorkshire by 133 runs. ENGAGE SUPER LEAGUE TOUR MATCH London...... 16 Huddersfield...... 12 Essex 502-4 dec. (A N Cook 214, R S Bopara 135, W I Jefferson YESTERDAY 64) v Australia 561-6 (B J Hodge 166, M L Hayden 150, J L Leigh...... 4 St Helens...... 78 Langer 87, S M Katich 72). Essex drew with Australia. Wakefield...... 46 Widnes ...... 6 Warrington...... 32 Salford...... 22 FOOTBALL PW D L F APts St Helens...... 26 22 1 3 972 493 45 FIFA WORLD CUP EUROPEAN QUALIFYING Leeds...... 26 21 0 5 1102 446 42 GROUP ONE Bradford...... 26 16 1 9 954 632 33 Andorra ...... (0) 0 Finland...... (0) 0 Warrington...... 26 16 0 10 729 670 32 Armenia...... (0) 0 Holland ...... (0) 1 Hull...... 26 14 2 10 708 610 30 Att: 4,000 van Nistelrooy 63 London...... 26 12 2 12 714 682 26 Romania...... (1) 2 Czech Republic...... (0) 0 Wigan...... 26 13 0 13 650 658 26 Mutu 28, 56 Att: 15,000 Huddersfield ...... 26 12 0 14 686 703 24 PWD L F A GDPts Wakefield...... 26 10 0 16 660 933 20 Holland 9 8 1 0 21 3 18 25 Salford ...... 26 9 0 17 503 700 18 Romania 11 7 1 3 19 10 9 22 Widnes...... 26 5 1 20 552 960 11 Czech Republic 9 7 0 2 28 9 19 21 Spanish master: Garcia celebrates his victory in the European Masters. Picture: Reuters Leigh...... 26 2 1 23 411 1154 5 Finland 9 4 1 4 16 14 2 13 FYR Macedonia 10 2 2 6 10 19 -9 8 RUGBY UNION PWD L F A GDPts Slovenia...... (1) 2 Norway...... (2) 3 GROUP SEVEN Andorra 10 1 2 7 4 27 -23 5 Portugal 9 7 2 0 30 4 26 23 Rodic 3 Carew 1, Lundekvam 24 Armenia 10 1 1 8 5 21 -16 4 Bosnia-Herzegovina...(0) 1 Belgium...... (0) 0 Russia 9 5 3 1 18 11 7 18 Koren 81 Pedersen 90 ZURICH PREMIERSHIP Barbarez 62 Att: 17,000 Leeds...... 11 London Irish...... 27 GROUP TWO Slovakia 8 4 3 1 19 6 13 15 PWD L F A GDPts Serbia & Montenegro(1) 2 Lithuania...... (0) 0 Leicester...... 32 Northampton...... 0 Albania...... (0) 2 Kazakhstan...... (0) 1 Latvia 10 4 2 4 17 17 0 14 Italy 7 4 2 1 10 6 4 14 Kezman 18, Ilic 75 Att: 35,000 Estonia 9 3 2 4 12 15 -3 11 Norway 7 3 3 1 9 5 4 12 PWD L F A GDPts Wasps...... 23 Saracens...... 11 Myrtaj 54, Bogdani 56 Nizovtsev 64 YESTERDAY Georgia...... (0) 1 Ukraine...... (1) 1 Liechtenstein 9 1 2 6 8 19 -11 5 Slovenia 7 2 3 2 8 8 0 9 Serbia & Montenegro 7 4 3 0 12 0 12 15 Bristol ...... 19 Bath...... 16 Gakhokidze 89 Rotan 44 Luxembourg 8 0 0 8 3 35 -32 0 Belarus 7 1 4 2 10 9 1 7 Spain 7 3 4 0 10 2 8 13 Bosnia-Herzegovina 7 2 4 1 8 8 0 10 Worcester...... 15 Gloucester...... 15 Turkey...... (0) 2 Denmark...... (1) 2 GROUP FOUR Scotland 7 1 4 2 4 5 -1 7 Buruk 48 C Jensen 41 Moldova 7 1 2 4 3 11 -8 5 Lithuania 7 2 3 2 7 5 2 9 France...... (2) 3 Faroe Islands ...... (0) 0 Belgium 7 2 2 3 7 8 -1 8 TENNIS Metin 81 Larsen 90 GROUP SIX PWD L F A GDPts Cisse 13, 76, Olsen 19 (og) San Marino 7 0 0 7 2 23 -21 0 US OPEN (Flushing Meadows, New York)—Men’s Singles 3rd rd: (8) Ukraine 10 7 3 0 16 4 12 24 Switzerland...... (1) 1Israel...... (1) 1 Northern Ireland...... (0) 2 Azerbaijan...... (0) 0 GROUP EIGHT Turkey 10 4 5 1 21 9 12 17 Frei 5 Keisi 20 Elliott 60 G Coria (Arg) bt R Soderling (Swe) 6-2 6-7 (4-7) 6-1 6-4, N Massu PWD L F A GDPts Feeney 85 (pen) Att: 11,909 Hungary...... (1) 4 Malta ...... (0) 0 (Chi) bt S Wawrinka (Swi) 6-4 6-3 6-0, (13) R Gasquet (Fra) bt (18) I Greece 9 4 3 2 12 7 5 15 Torghelle 35, Said 57 (og) Denmark 9 3 4 2 15 10 5 13 Switzerland 7 3 4 0 14 5 9 13 Poland...... (2) 3 Austria...... (0) 2 Ljubicic (Cro) 3-6 7-6 (8-6) 6-7 (7-9) 6-3 6-2, R Ginepri (USA) bt (29) Smolarek 13 Linz 61, 80 Takacs 65, Rajczi 85 T Haas (Ger) 7-5 6-7 (3-7) 6-4 2-6 6-3, (7) A Agassi (USA) bt (32) T Albania 10 4 0 6 9 17 -8 12 Rep of Ireland 7 3 4 0 11 4 7 13 Iceland ...... (1) 1 Croatia...... (0) 3 Georgia 9 2 3 4 13 18 -5 9 France 7 3 4 0 8 1 7 13 Kosowski 23 Berdych (Cze) 3-6 6-1 6-4 7-6 (7-2), X Malisse (Bel) bt (24) Mi Gudjohnsen 24 Balaban 56, 61 Youzhny (Rus) 5-7 1-6 6-1 7-5 7-6 (7-1), (19) T Robredo (Spa) bt S Kazakhstan 9 0 0 9 4 25 -21 0 Israel 8 2 6 0 11 9 2 12 Zurawski 68 Att: 6,931 Srna 82 (pen) Cyprus 7 1 1 5 7 12 -5 4 Wales...... (0) 0 England...... (0) 1 Grosjean (Fra) 6-4 7-5 6-7 (3-7) 7-6 (7-3), J Blake (USA) bt (2) R GROUP THREE Sweden ...... (0) 3 Bulgaria...... (0) 0 Faroe Islands 8 0 1 7 3 23 -20 1 Att: 70,715 J Cole 54 Ljungberg 60, Mellberg 75, Ibrahimovic 90 Att: 33,833 Nadal (Spa) 6-4 4-6 6-3 6-1. Women’s Singles 3rd rd: (7) J Henin- Estonia...... (1) 2 Latvia...... (0) 1 PWD L F A GDPts Hardenne (Bel) bt Y-J Cho (Kor) 6-0 7-6 (7-4), (12) M Pierce (Fra) bt GROUP FIVE PWD L F A GDPts Oper 11, Laizans 90 Poland 8 7 0 1 25 7 18 21 Croatia 7 6 1 0 19 4 15 19 (17) J Jankovic (Ser) 6-3 3-0 ret, (19) E Likhovtseva (Rus) bt (13) A Portugal...... (3) 6 Luxembourg ...... (0) 0 Moldova...... (1) 2 Belarus...... (0) 0 England 7 6 1 0 14 3 11 19 Sweden 7 6 0 1 26 2 24 18 Myskina (Rus) 0-6 6-3 7-6 (8-6), (3) A Mauresmo (Fra) bt (31) A-L Andrade 22, Ricardo 30 Rogachev 15, 49 Austria 7 3 2 2 13 11 2 11 Hungary 7 4 1 2 13 11 2 13 Groenefeld (Ger) 7-5 6-3, (6) E Dementieva (Rus) bt (29) A Pauleta 36, 56, Simao 78, 84 Scotland...... (1) 1 Italy...... (0) 1 Northern Ireland 7 1 3 3 7 13 -6 6 Bulgaria 7 2 2 3 11 14 -3 8 Chakvetadze (Rus) 6-1 4-6 7-6 (7-5), (11) P Schnyder (Swi) bt (24) S Russia...... (1) 2 Liechtenstein...... (0) 0 Miller 13 Grosso 76 Wales 7 0 2 5 5 12 -7 2 Iceland 8 1 1 6 11 21 -10 4 Asagoe (Jpn) 6-1 6-3, (15) N Dechy (Fra) bt (23) T Golovin (Fra) 7-5 2- Kerzhakov 27, 65 Att: 50,185 Azerbaijan 8 0 2 6 1 19 -18 2 Malta 8 0 1 7 2 30 -28 1 6 6-2, (2) L Davenport (USA) bt (32) A M Garrigues (Spa) 6-3 6-2. Owen waiting in Garcia chips in Ferrari to extend F1 tie-up the wings at 16th to win Motor reacing night. No financial details were given. sport's existing commercial agreement, Football Golf The existing deal, which provides a binding all teams together, runs out at BY MIKE BOVILL significant chunk of the Fiat-owned the end of 2007. A LACK of form may cost Michael Owen A RELIEVED Sergio Garcia delighted FERRARI has extended its Formula One team's budget, had been due to expire Despite the Marlboro sponsorship, a place in the starting line-up for Ryder Cup captain Ian Woosnam by sponsorship deal with Philip Morris to at the end of the year. Ferrari’s red and white cars are running England's World Cup qualifier against winning the European Masters in 2011 despite European Union legisla- Ferrari, struggling on the track this unbranded at Monza this weekend due Northern Ireland on Wednesday. The Crans-Sur-Sierre, the first event to tion against tobacco advertising. season, already have oil company Shell to a local court judgement and linger- Newcastle striker was suspended for count towards qualification for the The agreement means the Marlboro signed up as a partner to 2010 and have ing uncertainty about the EU legisla- Saturday's 1-0 win against Wales and competition in Ireland next year. cigarette brand will remain the Italian agreed a commercial deal with Formula tion. coach Sven-Goran Eriksson is con- The Spaniard, who enjoyed a four- team’s title sponsor and will anger One supremo Bernie Ecclestone and the The directive banned all print and cerned he is not ready to start. stroke lead at one stage, held on to win those campaigners who had hoped the governing FIA to 2012. broadcast advertising and event spon- Owen has yet to play a competitive by a single shot from Peter Gustafsson sport would kick the tobacco habit. Montezemolo said Ferrari’s grand sorship within the EU by tobacco com- match this season, after being excluded of Sweden – 14 under par the winning Ferrari chairman Luca di prix activities were funded by such panies from the end of July. from the Real Madrid squad for their score. Paul Casey was third on 12 under, Montezemolo announced the five-year deals, as well as the sale of road cars Four of the 10 teams in Formula One opening game and subsequent move to a stroke ahead of another Ryder Cup extension at an Italian Grand Prix din- and merchandising and the team did have tobacco sponsorship, with Ferrari Tyneside. England played with Wayne star, Luke Donald, who finished tied for ner at the Monza circuit on Saturday not get a single euro from Fiat. The joined by Renault, BAR and Jordan. Rooney as a lone striker in Cardiff. fifth place. Garcia, Casey and Donald were all part of the victorious European team who beat America by a record score in Oakland Hills last September. Hewitt progresses after scare Bristol outgun local rivals Bath Both Casey and Gustafsson managed to draw level heading down the back Tennis tie-break but recovered to win 6-3 3-6 6- Rugby thanks to a penalty, drop goal and nine. But Garcia chipped in at the 16th 7 (2-7) 6-2 7-5. Frikkie Welsh’s try. and then parred the last two holes to BY MIKE BOVILL BY MIKE BOVILL There was little sign of the drama to New signing Lee Robinson proved to cling on to victory. After collecting the THIRD seed Lleyton Hewitt flirted with follow when Hewitt raced into a 5-0 BRISTOL announced their return to be the hero for Bath. The winger's late trophy, Garcia dedicated the prize to a elimination before eventually dispos- lead in the first set. Even in the final top-flight rugby with a 19-16 win over try sealed the win, although three close friend who recently died of lung ing of Taylor Dent to reach the last 16 at set, the former champion and last local rivals Bath. penalties from Jason Strange had kept cancer: “It was a tough day, it was a big the US Open. year's runner-up gave away a break The newly promoted side needed a them in the game. Bath missed a total hit to my head when I found out. I The Australian found himself two advantage, only to break back again to second half fight back to secure the of four kicks at goal, gifting victory to wanted to play well for her and I think I sets to one down after losing a third set seal the match. points after Bath raced into 13-3 lead their rivals. almost tried too hard.” 24 SPORT CITYA.M. MONDAY SEPTEMBER 5 2005 ANDY GARCIA Spaniard cruises to European victory PAGE 23

PAGE EDITED BY MIKE BOVILL email [email protected] All Blacks’ great form is their greatest worry

AS ONE season starts so another ends. because they are playing like gods now come for England and the rest of the New Zealand collected the Tri-Nations SPORT COMMENT: doesn't mean they will in two years’ home nations to start shaping their trophy after yet another victory in time. Ask England – currently a shadow squads to make sure they can compete. what's been an outstanding southern of the side Martin Johnson led to glory The new Guinness Premiership sea- hemisphere winter for the All Blacks. GAVIN HASTINGS in Sydney only 21 months ago. son started this weekend - by the time And over here, the new domestic cam- The question the New Zealanders it ends in May, we will have a much bet- paign is under way. have to ask themselves is how do they ter idea of how successful they have Graham Henry's New Zealand side sustain their current level of perform- been. have been outstanding. Their win over awesome. It's been a great winter from dynamic rugby that characterises the ance? I was pleased to see such big crowds Australia at Eden Park was expected their perspective. The sheer athleticism game in that part of the world. Henry has surrounded himself with on the opening weekend, and congrat- but it is the level of rugby that the All of the side is a joy to watch. Look at Is there a danger they have peaked a great coaching team and I'm sure ulations to my fellow Scot Ian Blacks – and South Africa – have pro- Dougie Howlett, scorer of a hat-trick of too soon? We have been here before, that is something he has been asking McGeechan, whose London Wasps side duced that has caught the eye. I was tries against the Wallabies on Saturday. after all – watching the All Blacks beat himself and them. Maybe this time, won his first match in charge - against there to witness the destruction of the He has forced his way back into the all-comers in between World Cups, only they can avoid the same old mistakes. Saracens – in front of 35,000 at Lions and there is only one word for the team by playing the sort of rugged, to make a mess of things when it So, the World Cup kicks off in France Twickenham. They are already produc- way they are playing at the moment – aggressive and exciting brand of comes to the tournament itself. Just in the autumn of 2007. The time has ing rugby to set the pace this season. England POLE POSITION: Montoya celebrates a rare Formula One victory call up Anderson for Ashes Pace bowler’s selection is a surprise as Jones keeps England waiting on his fitness as the crunch test for the Ashes

Cricket Jones led to him being axed. However, Anderson has taken 51 wickets in the BY MIKE BOVILL County Championship this season, at an average of 31.8 — good enough to change THE inclusion of Lancashire bowler James the selectors’ minds. Anderson was the biggest surprise when Paul Collingwood is also in the 13 for the the England selectors named their squad Oval. He could yet play if Jones fails to recov- for the final npower test against Australia. er and England choose to go with just three He replaces Chris Tremlett, who was 12th seamers and an extra batsman. The man for the last four Ashes matches and Durham player’s form with the bat has was widely expected to replace Simon been outstanding – adding another century Jones, should the paceman fail to recover against Derbyshire recently. from an ankle injury. Chairman of selectors, David Graveney, Anderson’s experience at test level blamed a lack of form for Tremlett’s exclu- helped persuade the selectors to choose sion. Graveney said: “His involvement with him over Tremlett. He toured Australia dur- the Test squad has meant limited opportuni- ing the last Ashes series and has won 12 ties for him with Hampshire and we feel that WINNING STREAK: McClaren’s Juan Pablo Montoya cruised to victory in the Italian Grand Prix at Monsa, but Fernando caps. A lack of form and the emergence of he is not at the top of his game at present.” Alonso extended his champion drivers’ lead by finishing second. Picture: REUTERS COMING TUESDAY WEDNESDAY THURSDAY FRIDAY Sam Ashes Trevor Henk THIS Torrance Preview Steven Potts WEEK ...