BUSINESS WITH PERSONALITY MERLIN PIPPA MIDDLETON’S MISSES VINCE CABLE WOKING CONNECTION LASHES OUT AT CAPITALIST EXCLUSIVE: P10 LENDERS PAGE 4

Issue 1,388 Tuesday 24 May 2011 www.cityam.com FREE GREEK CRISIS ROCKS HEART

OF EUROZONE Ryan Giggs is the footballer at the centre of a super-injunction row Picture: ACTION IMAGES

▲ EUROZONE CRISIS tion that it would not views in the EU, with the European Privacy laws in chaos as BY JULIET SAMUEL create a credit event”. Central Bank ruling out a restructur- But ratings agen- ing even as European Commission offi- STOCKS tumbled and the cost of cies have warned cials talk openly about the possibility. Greek borrowing soared to new highs that a voluntary The FTSE 100 dropped to a two- MP names Ryan Giggs yesterday as investors fretted that the restructuring would month low, losing 1.9 per sovereign crisis is spreading to core count as a default, cent over the day, while Eurozone countries. which is likely to the Eurostoxx 50 Following ratings agency S&P’s deci- be seen as a closed down 2.1 per ▲ MEDIA seeking to flout for whatever purpose.” sion to put Italy on a negative credit “credit event”. cent. Banks with BY STEVE DINNEEN The events will be seen as a slap in watch on Friday, Belgium was hit by a Rehn also exposure to the face for the judiciary, who only revision to a negative outlook by Fitch raised the pos- Eurozone peripher- UK PRIVACY laws lay in tatters yester- hours earlier rejected an appeal to yesterday. Economists are also anxious sibility that als were worst hit: day after an MP used his parliamen- overturn the injunction. After a sec- over political divisions in Spain after a Athens could be RBS closed down 1.5 tary privilege to name Ryan Giggs as ond appeal last night, also rejected, weekend of demonstrations against bailed out per cent, Banco the player at the centre of a super- Justice Tugendhat said he was aware austerity cuts followed electoral losses through loans Santander lost 1.7 injunction row. that the injunction had been broken for the ruling Socialist Party. to its creditors, per cent and BNP John Hemming – the same Lib Dem on sites including Twitter but said Negotiations between the EU, the which he Paribas dropped MP who named Fred Goodwin as the that was no reason to scrap it entirely. IMF and Greek Prime Minister George called a 1.8 per cent. banker with a super-injunction – said Several MPs have criticised Papandreou (pictured) appear mired “Vienna-type Yields on “with about 75,000 people having Hemming for abusing his parliamen- in confusion, with an announced initiative” Greece’s two-year named Ryan Giggs on Twitter it is tary privilege to break the injunction. scheme to raise the value of national after an debt rose over 26 obviously impracticable to imprison But David Cameron appeared to privatisations to €5.5bn (£4.7bn) hav- accord struck per cent and its ten- them all.” The MP for Birmingham side with the media on the issue, say- ing little effect on market confidence. during the year yields jumped Yardley also named Giles Coren as the ing before the injunction was broken EU economics commissioner Olli financial cri- over 17 per cent for the journalist facing prosecution for that it was “unfair” that the British Rehn added to the chaos yesterday by sis. first time. Spain saw breaking an injunction on Twitter. press should be banned from report- saying that “a voluntary extension of Investors its five-year debt costs House speaker John Bercow repri- ing on issues that are being openly dis- loan maturities, so-called reprofiling have been spike to a new high manded Hemming, saying: “Occasions cussed elsewhere. He said: “The danger or rescheduling on a voluntary basis spooked by a of 4.95 per cent. such as this are occasions for raising is that judgments are effectively writ- could also be examined on the condi- divergence of MARKETS: P21 the issues of principle involved, not ing a new law.” ALLISTER HEATH: P2

▼ ▼ ▼ ▼ ▼ Certified Distribution FTSE 100 5,835.89 -112.60 DOW 12,381.26 -130.78 NASDAQ 2,758.90 -44.42 £/$ 1.61 -0.01 £/¤ 1.15 unc ¤/$ 1.40 -0.02 04/04/11 - 01/05/11 is 103,899

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www.cassmba.comwwww..cassmba.com 2 News CITYA.M. 24 MAY 2011 It’s time for a free speech revolution NEWS | IN BRIEF US insurers face $10bn losses Devastating tornadoes, floods, earth- quakes overseas and a busier-than-usual imperfect, has done much more for TACKLING EUROPE’S DEBT WOES maturities differ – but Evans decided hurricane season have US insurance free speech in recent years and IMAGINE you owed you neighbour to see how far he could get. Using data companies bracing for record losses in decades than the UK legal system. The £100,000 and she owed you £99,000. from the Bank of International 2011. Insurers could suffer as much as super-injunctions fiasco – under Instead of both sides struggling for Settlements, and looking at total bank $10bn (£6.2bn) from weather-related which courts stop anyone from pub- years to meet the interest and capital debt in Portugal, Ireland, Italy, Greece, losses in the US in 2011, which is up lishing information deemed private payments on the money you owed Spain, Britain, France and Germany, from the average of $2bn to $4bn, about an individual, and even bans each other, you would simply cancel Evans found that these countries according to EQECAT, which provides disclosing that the injunction itself the debt out, which would leave you could reduce their total debt by 64 per disaster and risk models to insurance EDITOR’S LETTER actually exists – could not have hap- having to repay her just £1,000 in cent through the cross cancellation of companies. On top of the potential US pened in America. cash, a much more manageable sum. interlinked debt, taking total debt losses, insurers are also reeling from dis- ALLISTER HEATH But there is another, even worse That would be the only actual cash from 40.47 per cent of GDP to 14.58 asters overseas, including large earth- problem: our libel law is not fit for that would have to change hands – per cent. UK banks were able to write quakes across the Pacific Rim. THERE is something beautiful about purpose and allows rich companies when it comes to sorting out the rest, off more than 50 per cent of their out- the First Amendment to the US and powerful individuals to muzzle a simple, friendly accounting exercise standing debt. Ireland can reduce its Shale gas drilling gets go-ahead Constitution. For those of you who journalists in ways that ought to be would be enough to eliminate a mas- debt from almost 130 per cent of GDP Britain does not need to impose a mora- need reminding, here it is: “Congress unthinkable in a free society. The gov- sive headache. to under 20 per cent. torium on drilling for unconventional gas shall make no law respecting an estab- ernment has promised reforms; let us In a fun but important paper by one Needless to say, it is not really that sources, a parliamentary committee said lishment of religion, or prohibiting hope its draft Defamation Bill is soon of Britain’s most interesting young easy, as Evans readily explains. The yesterday, two weeks after France rec- the free exercise thereof; or abridging passed into law without being diluted economists, Anthony J Evans of ESCP debt reductions would necessitate gov- ommended making a freeze on shale gas the freedom of speech, or of the press; or destroyed by vested interests. business school, this same idea is ernments stepping in and negotiating drilling permanent. There is no evidence or the right of the people peaceably to Of course, the media has in the past applied to Europe’s debt crisis. When on behalf of banks based in their that fracking, a process that involves assemble, and to petition the govern- acted irresponsibly, something for one country (or banking system) is countries. But it is time to start think- injecting water, sand and chemicals into ment for a redress of grievances.” which there can never be any justifica- both a creditor and debtor to another, ing out of the box – and to find radical shale rock formations to extract trapped Inevitably, like all constitutional provi- tion. That must end. But if the events the obvious idea is to cross cancel solutions to protect taxpayers and sal- gas, is directly harmful to the environ- sions, it is subject to interpretation by of the past few weeks have taught us their debt. Of course, the real world is vage the European economies. ment, the Energy and Climate Change judges and lawyers (what is “speech”?) anything, it is that Britain is now a bit more complicated than that, [email protected] Committee said in a report published but the American system, while ready for a free speech revolution. especially given that interest rates and Follow me on Twitter: @allisterheath late yesterday.

7th Floor, Centurion House, 24 Monument Street, London, EC3R 8AJ US mortgage Tel: 020 7015 1200 Fax: 020 7283 5334 Email: [email protected] www.cityam.com Editorial Editor Allister Heath Deputy Editor David Hellier probe widens News Editor David Crow Night Editor Katie Hope Business Features Editor Marc Sidwell Lifestyle Editor Zoe Strimpel ▲ BANKING ment. Banks’ foreclosure practices are Sports Editor Frank Dalleres BY KATIE HOPE also under investigation by all 50 US President Obama flew to the UK from Ireland last night Art Director Craig Gaymer state attorney generals, as well as the Pictures Alice Hepple JP MORGAN Chase, UBS, Royal Bank of Justice Department and the Securities Commercial Scotland and Deutsche Bank are and Exchange Commission (SEC). The Sales Director Jeremy Slattery being scrutinised by the New York SEC is also investigating how banks Obama arrives early in UK Commercial Director Harry Owen State Attorney in an expanded probe bundled and sold toxic mortgages in Head of Distribution Nick Owen into mortgage practices at large collateralised debt obligation deals. banks. Earlier this month, the Department Units of bond insurers Ambac of Justice sued Deutsche Bank for ▲ US POLITICS Crowds lined the streets in Dublin Distribution helpline Financial, MBIA, Syncora Holdings $1bn for allegedly misleading the to hear Obama’s speech, in which he If you have any comments about the distribution BY ELIZABETH FOURNIER of City A.M. Please ring 0207 015 1230, or email and Assured Guaranty have also been Federal Housing Administration touched on Ireland’s economic woes [email protected] subpoenaed by the state’s attorney about the quality of its mortgages in US PRESIDENT Barack Obama flew to but lifted the audience’s spirits, say- general for information related to an effort to obtain insurance for them the UK from Ireland ahead of sched- ing: “This little country that inspires Editorial Statement claims they paid out on mortgage- and later sell them. ule last night, as worries over ash the biggest things -- your best days This newspaper adheres to the system of related products. from Iceland’s Grimsvotn volcano are still ahead.” self-regulation overseen by the Press Complaints The probe comes amid a flurry of Eric Schneiderman spreading to UK airspace forced an He also pleased the crowds by Commission. The PCC takes complaints about the regulatory activity into how financial succeeded Andrew early departure. translating his iconic election slogan editorial content of publications under the Editor’s institutions handled home loans and Obama had planned to stay in into Gaelic, ending his speech by say- Code of Practice, a copy of which can be found at Cuomo as the NY www.pcc.org.uk assembled them into pools sold to Ireland overnight after visiting both ing: “Is feidir linn” – or yes we can. state’s attorney general Printed by Newsfax International, investors. Dublin and the small village of Obama’s visit to Europe is expect- Beam Reach 5 Business Park, Ambac, Deutsche Bank, JP Morgan this year Moneygall, where one of his ances- ed to last a week, with stops sched- Marsh Way, Rainham, Essex, RM13 8RS and UBS and RBS declined to com- tors lived before moving to the US. uled in the UK, France and Poland. WHAT THE OTHER PAPERS SAY THIS MORNING

parability of salaries for people who can move easily between the enforcers and the regulators, and UK BUILDERS SEE VALUE OF ORDERS there are different salary arrange- TALKTALK SLAMMED FOR CISCO SUED BY RELIGIOUS DISSIDENTS NORWAY RAPS SHELL FOR RISKING OIL COLLAPSE ments that cause me concern,” DISHONESTY AND DECEIT FOR HELPING CHINA MONITOR LEAK The value of work awarded to UK con- Richard Alderman, director of the TalkTalk has been “dishonest, mis- INTERNET Royal Dutch Shell has been rapped by struction companies crashed during Serious Fraud Office, told the leading or deceptive” in hoodwinking Chinese religious dissidents have Norway’s Petroleum Safety Authority the past year, raising concerns that Financial Times. customers into signing up to new launched a lawsuit against Cisco, for a maintenance error on an oil the impact of government spending telephone packages, Ofcom ruled yes- alleging that the US technology giant well that had “major accident poten- cuts will be far worse than previously WALMART CHINA’S RANKS SUFFER terday. The regulator said that the knowingly built equipment that the tial” and risked an oil leak. The inci- feared. The total value of new work DOUBLE BLOW company, which has been under fire Chinese government intended to use dent occurred in December 2010 on awarded to the UK’s 50 leading con- Walmart’s business in China has hit in the past for poor customer servic- to target its opponents. Practitioners Norway’s Draugen field, which pro- struction companies fell by 39 per an unexpected bump with the sud- es, had contravened strict mis-selling of Falun Gong allege Cisco had a key duces around 50,000 barrels of oil a cent during the 12 months to May, den resignation of two senior execu- rules designed to protect consumers role in building a “Golden Shield”, an day, the PSA watchdog said on its compared with the same period a tives at a time when it is facing by “providing misleading informa- internet firewall that the China uses website yesterday. year earlier, as school, hospital and increasing competition in the coun- tion that is likely to affect a cus- to censor the web and track down dis- road building projects were shelved. try. The world’s largest retailer by tomer’s purchasing decision”. sidents. AIR FRANCE BLACK BOXES POINT TO sales said that Roland Lawrence, its PILOT ERROR SFO CHIEF SEEKS 50 PER CENT SALARY chief financial officer in China, and OUTDOOR FIRM ON THE PATH TO HOME BUYERS TO SPEND HALF OF The pilots of an Air France jet that RISES FOR STAFF Rob Cissell, its China chief operating EXPANSION TAKE-HOME PAY ON MORTGAGE crashed into the Atlantic Ocean two The head of Britain’s white-collar officer, had both resigned “due to per- GO Outdoors has cashed in on the Home buyers will spend more than years ago apparently became distract- crime agency wants to raise salaries sonal reasons to explore other oppor- seemingly infinite interest for climb- half of their take-home pay on their ed with faulty airspeed indicators by 50 per cent in a bid to stem a flow tunities”. Walmart is looking to ing, camping and other outdoor mortgage once interest rates begin to and failed to properly deal with other of departures, attract high-calibre China and other emerging markets to equipment by securing a £30 million rise again, analysts warned yesterday. vital systems, including adjusting recruits from private practice and offset the flat performance of its US credit facility from Lloyds Banking Economists said there is ‘no doubt’ engine thrust, according to people compete with better-funded regula- business, where it has limited growth Group. It plans to add ten stores this that Bank of England interest rates familiar with preliminary findings tors. “I am concerned about the com- potential. year to take its total to forty outlets. will return to around 5 per cent. from the plane’s recorders. CITYA.M. 24 MAY 2011 News 3 CHELSEA CHARMS THE CITY Glencore to join Fears of chaos FTSE 100 in full as ash cloud trading launch ▲ COMMODITIES COMMODITIES giant Glencore will claim its place in the blue-chip FTSE hits Scotland 100 index as it begins full market trading on the London Stock Exchange today. Glencore is expected to join the ▲ AVIATION celled 16 flights flying to and depart- FTSE 100 immediately due to its more BY KATIE HOPE ing from Aberdeen, Glasgow, than £30bn market value, pushing- Edinburgh and Newcastle. EasyJet can- software maker Invensys into the FEARS OF a repeat of last summer’s celled flights to and from Edinburgh, FTSE 250. But in signs that investors mass flight disruption were fuelled yes- Glasgow, Inverness and Aberdeen may be worried it is overvalued, it has terday as airlines began cancelling between 5 a.m. and 9 a.m. today, while seen its share price fall by 16p since flights in and out of Scotland in the Flybe cancelled flights to and from its launch last Thursday and has trad- wake of the volcanic ash cloud blowing Aberdeen and Inverness. Glasgow- ed at below its offer price since Friday. in from Iceland. based Loganair cancelled 36 flights. Glencore began conditional trad- BA, KLM, Easyjet, Flybe, Aer Lingus, Iceland’s aviation authority ing, where shares are traded unoffi- Loganair and Eastern Airways have all reopened Keflavik airport late last cially on screens without actually cancelled services for today as the Met night, but said it was impossible to being delivered, on 19 May at 530p Office forecasted the plume from the know whether the island’s internation- per share. But it closed down 1.9 per Grimsvotn volcano will reach northern al hub would remain open today. cent yesterday after most stocks were and western Scotland last night. It is Authorities played down a repeat of hammered by fears over Eurozone expected to clip northern parts of last year, when ash from an Icelandic debt levels and a strong US dollar. Northern Ireland early today, and, if volcano caused some 100,000 flights to Broad concerns over the health of the volcanic emissions continue at the be cancelled, stranding 10m passen- the commodities market remain and same rate, could reach western France gers and costing the industry an esti- declining investor risk appetite and northern Spain on Thursday. mated $1.7bn (£1.1bn) in lost revenue. caused metal and energy prices to suf- British Airways grounded all flights Transport secretary Philip Hammond fer steep falls yesterday. from London to Scotland until 2 p.m. said authorities could work with air- Brent crude oil futures fell 2.2 per today as a precautionary measure, a lines to “enable them to fly around con- cent or $2.50 to $109.89 per barrel spokeswoman said. centrations of ash rather than having to THE Queen was presented with a rare orchid named in her honour yesterday as this year’s while copper, nickel and tin fell Others cancelled some of their impose a blanket closure”. Chelsea Flower Show 2011 opened with several well-known City players braving the strong between 2.6 and 4.7 per cent. The flights to and from Scotland today. Nonetheless, airline shares fell, los- winds for the annual gala preview. Centrica boss Sam Laidlaw, Marks & Spencer chair declines hurt the FTSE’s large mining Dutch airline operator KLM, part of Air ing three to five per cent yesterday. Robert Swannell, Lloyds chairman Sir Win Bischoff, newly appointed Tesco chair Sir stocks, with Anglo American down France-KLM, said last night it had can- RYANAIR: P14, MARKETS:P21 Richard Broadbent and Prudential chief Tidjane Thiam were all spotted among the roses. 4.1 per cent at the market’s close.

It’s more than just a plan. It’s a Big Plan. What you might call a total overhaul of the Tube, and it’s already well under way. In fact we’ve already laid over 200km of new track, improved safety, and refurbished more than half of the 270 existing stations. We’ve done a lot, but there’s a lot more to do. Please bear with us. We’re doing everything we can to keep disruptions to a minimum. Keep up with the upgrade plan and how LWPLJKWDIIHFW\RXDWWÁJRYXN 4 News CITYA.M. 24 MAY 2011 Don’t blame banks for low demand Merlin rhetoric won’t help the economy, says Juliet Samuel

VINCE Cable was grand-standing on last quarter, British businesses signed In order to pander to Cable and his his favourite topic yesterday: the ills up for £47.3bn of credit, £200m short pals, banks would either have to cut of British banks. But there was more of the Merlin figure. But it was not the price of credit at a time when cap- sound than sense in his warning that banks that “missed” the Merlin tar- ital is more expensive than ever, or lenders had better “meet the com- get; it was the businesses. lend to dodgy borrowers. mitments they agreed” – or else. The £47.3bn figure is not a meas- Even small business groups high- That’s because the five Merlin ure of the capital banks had on hand lighted yesterday that any lending banks have so far done exactly as for lending; it is a measure of the problem is due to limited industry promised. They have collectively set amount businesses signed up to use competition, not unwilling banks. As aside £190bn in capital to lend to busi- at the prices available. And only some Barclays chief Bob Diamond says: ness, an average of £47.5bn a quarter. of that money, which includes servic- “We like to lend. It’s what we do.” But now this commitment to sup- es like extended overdraft facilities So politicians need to make up ply credit is being judged against a and credit lines agreed but not yet their minds: do they want more lend- measure of demand for credit: in the drawn down, has so far been used. ing or sound lending?

Cable threatened banks with “further action” Picture: Micha Theiner/City A.M. Cable attacks lenders over Merlin target

▲ BANKING agreement to rectify the problem and though these are early days we want to BY JULIET SAMUEL see significant improvement.” BANKS endured a hail of criticism yes- He threatened “further action” if terday as official figures confirmed banks “fail to meet the commitments that businesses did not request as they have agreed”. much credit as the Treasury was hop- John Walker of the Federation of ing for under the Merlin deal struck Small Businesses said it was “not sur- with banks in February. prising that the banks have not met Data published yesterday show that lending targets to small firms”. there was demand for £47.3bn in cred- Shadow chancellor Ed Balls added it facilities in the first-quarter covered to the chorus of criticism, saying: “The by the Merlin agreement. That is nar- signs are that the project Merlin plan rowly below the average £47.5bn per is not working… Businesses I talk to are quarter that banks agreed to make fearful that the government is letting available in lending capacity (making the banks off the hook.” He added that £190bn for the year). project Merlin is “weak and toothless”. The figure for small businesses was However, banks blamed the £200m £16.8bn, below the average £19bn per shortfall in gross lending on “muted quarter that banks were supposed to demand”. They said that the full have made available under Merlin. £190bn lending capacity agreed is In response, business secretary available for the year, but that busi- Vince Cable said: “There is a serious nesses had only requested that the problem with lending to good, small banks make available £47.3bn in credit companies. We looked to the Merlin facilities. BANKS’ LENDING AGREEMENTS

WHAT DID THE BANKS COMMIT use up the whole Q. TO? £190bn banks have com- Q& A Under the terms of “project mitted for the year, they A. Merlin”, a deal with the would have to lend an average of Treasury aimed at reviving lenders’ £47.5bn a quarter. image, five banks – RBS, Lloyds, HSBC, Barclays and Santander UK – SO THEY MISSED THE MERLIN agreed to make £190bn in credit Q. TARGET? available to businesses this year, ver- The Merlin figure is not techni- sus £179bn in 2010. They earmarked A. cally a target, although it is £76bn of this for small businesses. being treated as one. Banks have agreed to set aside the capital to lend HOW MUCH HAVE THEY LENT SO £190bn for the year if asked for it, Q. FAR? but their ability to lend that amount Official figures released yester- depends on demand: if businesses A. day showed that banks’ gross aren’t prepared to take loans or cred- lending facilities for the first-quarter it facilities at prices banks deem fea- of the year were £47.3bn. In order to sible, there is little they can do. CITYA.M. 24 MAY 2011 News 5

Sir Martin Broughton is in pole position to buy the Tote Picture: REX Broughton bid of £230m puts him in the lead

▲ LEISURE industry, a leaked memo circulated among investors in March shows. BY RICHARD PARTINGTON Betfred had earlier scrambled to SIR Martin Broughton, the deputy show its bid would be worth £45m chairman of airline IAG, yesterday more to the racing industry than Sir pulled further ahead in the race to buy Martin’s offer. the Tote, after it emerged his bid values The bookmaker, led by Fred the state-owned betting pool at £230m. Done, said its £11m commitment to The development puts further dis- the racing industry in the first year tance between his offer and the £200m- and £9m each year for the remainder valued bid being wagered by high of the seven-year contract to run the street bookmaker Betfred. betting pool would trump Sir Martin’s Sir Martin’s Sports Investment offer. Partners would include a cash compo- An announcement from the govern- nent of £90m for the government and a ment on the sale of the Tote is expected £90m contribution to the horseracing as early as today. ADVISERS: GLOBAL LEISURE PARTNERS

clients in the retail, media, travel and MERVYN METCALF online sectors. Prior to joining GLP, Metcalf spent GLOBAL LEISURE almost 11 years at Merrill Lynch, where PARTNERS latterly he was a managing director in the group's UK investment banking team. Before that, Metcalf worked at Barclays de Zoete Wedd. MERVYN METCALF is advising Betfred David Clasen, founder of boutique on its bid for the Tote, the state-backed advisory firm Clasen & Co is also advis- betting pool. ing Betfred. As managing director for Global Nick Wells, head of corporate finance Leisure Partners (GLP), he has signifi- at City broker Cenkos is advising Sir cant experience in advising corporate Martin Broughton on his approach. 6 News CITYA.M. 24 MAY 2011

CITY VIEWS: SHOULD GORDON BROWN BE THE NEXT HEAD OF THE IMF? Interviews by Shiba Babamiri and Scarlett Archer Mexico to challenge IN ASSOCIATION WITH Save or Borrow peer to peer at RateSetter.com Lagarde for IMF job www.RateSetter.com Customer Phoneline: 08442490115

▲ ADAM POSNER | MARK FOSTER | TAMER EL–SHOURA | IMF SUCCESSION into the race to lead the global lender. CATLIN GROUP WATTS DEUTSCHE BANK FRENCH finance minister Christine The International Monetary Fund Lagarde’s candidacy for IMF chief is has promised a merit-based process “I don’t think so. People “No. He has made a shamble “Yes, why not. He’s got good gaining momentum in Europe, to replace former leader Dominique have lost faith in him after of our economy in the past experience in the financial while Mexico has put forward its Strauss-Kahn of France, who is under his role as the chancellor so I wouldn’t want him sector and I think people own candidate, ensuring competi- house arrest in New York on charges so I don’t think he is the heading the IMF. shouldn’t blame him tion for the top job. he attempted to rape a hotel maid. right person. I can see why I don’t think the leader for the economic The Mexican finance ministry said Europeans have held the top IMF David Cameron needs to be from Europe downfall as it was- it would nominate central bank job since its creation in 1945 and doesn’t want him either. As long as they’re n’t solely his fault.” chief Agustin Carstens, placing a Lagarde is widely considered the prominent emerging market name front-runner. in the running.” well qualified.” MPs condemn Rosenfeld’s Cadbury snub ▲ POLITICS failed to provide them with enough BY ALISON LOCK detail of its hiring and firing since acquiring Cadbury. MPs condemned Kraft’s chief execu- While in 2010 Kraft said it would tive Irene Rosenfeld (pictured) in the make some staff from both firms strongest language yet yesterday for redundant and merge or move office refusing to give evidence about the functions, the report said its progress firm’s £11.5bn acquisition of Cadbury. report “avoided reference to most of Kraft’s third refusal for Rosenfeld to these announcements”. But it said meet MPs either in person or via a Kraft’s creation of 50 new posts at videoconference “fell short of an Bournville and plans to recruit 50 explicit contempt of the House, new R&D staff were “all good but not by much”, the Business, news”. Innovation and Skills select Explaining Rosenfeld’s committee’s report into refusal to meet MPs, Kraft progress since the deal said. general counsel Marc MPs also attacked Kraft for Firestone said via email that making “misleading” commu- “there seems to be a desire to nications about last year’s have a ‘star witness’ towards Takeover Panel ruling, and whom ill-founded allegations proposed changes to and insults can be made, the Takeover Code with little or no to prevent firms attempt to discuss the backtracking on facts.” claims that help MPs said Firestone to secure deals. “showed a distinct The report said lack of judgement” MPs still had “sig- as “the authority to nificant con- close factories…res- cerns” about the ted not with him but takeover, and primarily with Ms that Kraft had Rosenfeld.” LinkedIn shares fall 5pc raising fears firm’s value is over-inflated

▲ TECHNOLOGY made. Shares in Chinese search engine Renren also rocketed after its IPO but LINKEDIN slumped almost 10 per cent then fell back over the next week. during trading yesterday before closing LinkedIn’s meteoric rise fuelled spec- five per cent lower at $88.30, sparking ulation the tech sector is heading for a fears the initial rush on its shares may second dot.com bubble. At its high have over-inflated the firm’s value. point the business social network was The low-point of $84 a share was still trading at more than 700 times its 2010 far higher than its IPO price of $45 a earnings of $15.4m and 45 times its share but a big slip from the dizzying revenues of $243m. The Silicon Valley- heights of $123. based firm had already upgraded its The pressure comes ahead of the listing price by 30 per cent in the days deadline this afternoon when LinkedIn running up to its IPO. shares “settle”, opening up the Rob Enderle, analyst at Enderle prospect of short sellers betting against Group, said: “At least it’s not collapsing. the firm. But if it comes down a lot it’ll make it Many investors seem to have decided much tougher for Facebook and to lock in the gains they have already Twitter to come out high.” CITYA.M. 24 MAY 2011 News 7

Energy expertise key for growth, says chief exec sstt

▲ MustMusMu OUTSOURCING tracts. Meanwhile, acquisitions d BY JOHN DUNNE are on the agenda if the opportu- enendndn nity is right. RUBY McGregor-Smith yesterday “We are mainly looking at 3311 JJuly unveiled a strong set of results at organic growth but we would con- her FTSE-250 listed outsourcing sider acquisitions or bolt-ons if company Mitie while predicting they are right for us,” she said. that energy advice would help to McGregor-Smith is the only fuel future revenue growth. Asian woman chief executive of a The trained accountant, with a FTSE 250 company but emphasis- reputation as a personable, effec- es she is a champion of diversity tive operator, told City A.M. that in the workplace among all government cuts had not dented groups rather than just women. its order book. “We have been named as one of On the contrary, she said its the top employers for women and services in advising organisations I am very proud of that. But I like the Royal Free Hospital in take diversity to be about all London on how to cut its energy groups, it’s not just a woman bills without hitting services were thing.” proving a new avenue of growth. Raised in London, she studied “We see these energy services as at Kingston Polytechnic before very important. It’s all part of joining accountants BDO. She how money can be spent better.” was recruited by outsourcer Serco She takes pains to point out in 1991, climbing up the corpo- that more than 60 per cent of the rate ladder with a variety of sen- company’s work is in the private ior roles. She became chief sector, with services ranging from executive at Mitie seven years ago, RUBY MCGREGOR-SMITH security guards to cleaning con- aged just 44. Areas include; Westminsterr,, Camden, Southwark, City of London, TToower Hamlets and Islinggtton. Book yours today call 020 7510 1617 Mitie profit climbs Or text “London” to 60300 for a call back as order book fills VVisitisit oourur sspacepace aatt nncp.co.ukcp.co.uk Terms & Conditions: This introductory offer is only available to the first 1,000 new customers. New customers are deemed to be those who have not been an NCP season ticket holder within the last 12 months. You must live within the qualifying residential areas. Qualifying residential areas are; Westminster, Camden, Southwark, City of London, Tower Hamlets and Islington. You will need to collect your ticket from our operations office in Brewer Street, London. You will need to bring with you two recent utility bills and photo ID. ▲ OUTSOURCING Smith said: “What we are seeing is of £11.4bn based on private sector If you are using our text service we will not charge you for your text but your network provider might. Please check your phone contract for details. BY JOHN DUNNE as our contracts grow, they are clients, which make up 63 per cent growing in scale and complexity, of revenue, while its energy con- CONSTRUCTION and outsourcing “Whereas five years ago the group sulting business was strong. firm Mitie said increased demand did lots more single services work, for bundled services had helped what we are now doing is lots of big- ANALYSIS l Mitie Group boost its full-year profit and that sig- ger bundled contracts and I think 220 p 220.40 nificant outsourcing and energy that is what’s driving the growth.” 23 May 215 opportunities would help sustain She said the firm’s government con- growth. tracts were still in healthy shape. 210 Mitie, which provides services “We continue to believe Mitie is 205 from cleaning to engineering, said very well placed to benefit from revenue for the year to 31 March clients’ needs to save costs and that 200 @ was up 10 per cent to £1.89bn, with comes from the group’s breadth of 195 profit before tax and other items up service”, added Investec analyst Guy FOR MORE NEWS 15.3 per cent to £105.7m. Hewett. 190 www.cityam.com Chief executive Ruby McGregor- Mitie said it had a sales pipeline 28 Feb 18 Mar 7 Apr 3 May 23 May 8 News CITYA.M. 24 MAY 2011 US in a push to British Land limit speculation upbeat as its in oil markets ▲ COMMODITIES THE US Congress should take steps to British Land chief executive Chris Grigg says it is benefiting from higher rents limit speculation in oil markets, which rents climb has boosted prices as much as 30 per cent, a new report from the ANALYST VIEWS: IS BRITISH LAND LAYING Democratic staff of a House of Representatives oversight committee ▲ PROPERTY both of our sectors. That’s both SOLID FINANCIAL FOUNDATIONS? Interviews by John Dunne said yesterday. BY JOHN DUNNE important, a change, and somewhat The report, based on data and opin- different from what many others in ions from industry experts, cites com- BRITISH Land yesterday reported a the industry are seeing.” GRAHAM JONES | ARBUTHNOT ments from Exxon Mobil chief profit rise but its shares were dented British Land retained its full-year executive officer Rex Tillerson and oth- after some analysts went lukewarm dividend of 6.5p, meaning its total div- ers that oil should be around $60-$70 on the stock. idend for the year was stable at 26p. Ordinarily these would be regarded as good results from British Land, (£37.21 to £43.42) a barrel based on the The company reported a 12.5 per Its shares closed 2.8 per cent lower but following the blockbuster results posted by Land Securities these look pedes- fundamentals of supply and demand. cent rise in net asset value (NAV) to at 576p yesterday. trian. Performance was similarly driven by developments which increased in value “Addressing excessive speculation “21.8 per cent, reflecting the positive sentiment in the lettings market. 567p and a 2.8 per cent increase in Last week Land Securities said it offers the single most significant underlying profit to £256m. would develop more prime central opportunity to reduce the price of But its shares were hit as some bro- London offices to capitalise on a [gasoline] for American consumers,” kers downgraded its stock, with Peel wider than expected supply shortfall, JOHN CAHILL | EVOLUTION ” according to the report, prepared for Hunt relegating it from “buy” to after reporting a 19.5 per cent rise in The paper was compiled by “hold”. its full-year NAV to 826p a share. Democrats on the House Committee British Land said the company was The result squarely meets expectations... with a strong growth in rents. on Oversight and Government Reform, benefiting from higher rents, par- ANALYSIS l British Land Co However, Land Securities has a stronger development pipeline on its London prop- which has broad oversight of govern- erties. As such we remain comfortably “neutral” on British Land, and “buy” Land ticlarly from premium central 610 ment policies. p 576.00 “Securities. London office space. It is spending 600 23 May The staff report, which also backs £1.1bn to build 2.2m sq ft of office other positions championed by minor- properties in central London by 2014. 590 ity Democrats including eliminating The projects include the Leadenhall 580 MARK HUGHES | PANMURE ” oil company subsidies, is unlikely to Building, known as the Cheesegrater. 570 gain much traction in the Republican- Chief executive Chris Grigg said: 560 controlled House. It argues that “We are optimistic ... we are invested The stock is trading on a premium to reported net asset value. We Republican proposals, such as boost- in the right sectors – that is high-qual- 540 have been buyers of the stock following a good run in the share price, it is looking ing domestic offshore drilling, would ity retail and central London offices. 530 up with events. Income funds will no doubt still be attracted by its 4.3 per cent not achieve the goal of reining in $4 a 28 Feb 18 Mar 7 Apr 3 May 23 May “dividend yield. However, our recommendation moves from “buy” to “hold”. “We see signs now of rising rents in ” gallon gasoline prices. CITYA.M. 24 MAY 2011 News 9 The changing of the guard at Goldman Sachs

there is much discussion about the the firm for only four years, having as a way of keeping him at the firm at tion in global mergers & acquisitions. two thirtysomethings that have been been at Citigroup where he was jun- a time when the likes of BoA Merrill In the UK, its presence is tremendous- put in charge of UK investment bank- ior to the likes of David Wormsley. Lynch would love to hire him, possi- ly strong too and it ranks top in ing. “It’s very unusual for a lateral hire to bly as a future leader. Others say that Bloomberg’s latest M&A table. The recent departure of Julian be promoted at the firm so early on,” his UK-oriented contacts base make a It acted for Cadbury in the bid of Metherell, the former head, who is said one banker yesterday. good balance to Sorrell’s more inter- the year in 2010 and has in the past going to start an investment firm Gutman is a well known leisure national experience. few days secured the sale of Jimmy with former BP chief executive Tony specialist who has acted on, among Sorrell, son of WPP’s Sir Martin Choo shoes on behalf of Towerbrook. Hayward, caused something of a stir, other things, the flotation of Betfair. Sorrell, was made a partner last year But it faces stiff competition from a INSIDE TRACK since it was not expected outside of More recently he was appointed as and few have doubted that he would renascent BoA Merrill Lynch, a high- the firm. joint adviser, along with BoA Merrill be going places. spending Barclays Capital, Credit DAVID HELLIER Now Goldman has decided to Lynch’s Simon Mackenzie-Smith, to In their new role Gutman and Suisse, Morgan Stanley and an ever- replace Metherell, an oil and gas National Express, which was skir- Sorrell will be supported by experi- strong JP Morgan. changing of the guard at banker, with Mark Sorrell and mishing with one of its dissident enced bankers such as Karen Cook Goldman will be hoping that two Goldman’s UK investment Anthony Gutman, in a joint role. shareholders Elliott Partners. and Matthew Westerman. As the heads are better than one as it tackles banking division is always Gutman’s appointment is especial- Some say that Gutman, who is not recent league tables showed last the competition head on. Aclosely watched and so it is that ly noteworthy since he has been at yet a partner, was given the joint role week, Goldman has the leading posi- [email protected] NEWS | IN BRIEF

Russia thinks BP deal is dead Panel calls for metal trade probe Russia’s energy minister does not expect The government should probe whether BP and Rosneft to revive their historic metals markets with high levels of specu- exploration deal. Sergei Shmatko told lation and volatility are an acceptable reporters yesterday: “I don't believe way to bring strategic commodities to there’s any chance of reincarnation of the end users, a parliamentary committee deal in its current form,” adding that the advised yesterday. The science and tech- two oil companies were continuing talks nology committee has expressed con- over a new agreement to search for oil in cerns over reports of hedge funds buying the Arctic. Talks between the firms broke up significant quantities of metals, which down earlier this month after a deadline may exacerbate price and supply volatili- passed without any deal to include BP’s ty for some metals that are “strategically Russian venture TNK-BP in the project. important” for the economy. Metals that AAR, a group of Soviet-born billionaires have a vital role in the British economy, who part-own TNK-BP, won a legal battle according to the committee, include rare to stall the Rosneft alliance in January. earth, gold, nickel and platinum.

9 914997 322995 10 EDITED BY CITYA.M. 24 MAY 2011 HARRIET DENNYS Got A Story? Email [email protected] The Capitalist Follow The Capitalist on Twitter: @citycapitalist THE TALE OF PIPPA MIDDLETON, ALEX LOUDON AND THE BEERMAKER

COULD Pippa Middleton be persuad- ker, but if the Alex Loudon who his professional cricket career near ed to relocate to leafy Woking? answered the phone from the his family home in Kent before mov- The Capitalist only asks because a Surrey HQ of the South African ing to Warwickshire in 2005. finance professional with the same brewing giant is one and the same But when his sporting career name as her boyfriend and rumoured person, the job title of corporate came to an end, he decided to fol- fiancé, Alex Loudon, is currently finance and development analyst at low in the footsteps of his father employed by the Woking UK head SABMiller is nearer the mark. James Loudon – a “big fish in the office of brewing giant SABMiller. Alexander Guy Rushworth City”, says a source. Loudon senior Recent press reports have Loudon, to give him his full name, is chairman of Caledonia described the younger Middleton was educated at Eton before becom- Investments and former group sister’s love interest as a stockbro- ing a promising cricketer, starting finance director of cement manu-

Woking around the clock: Pippa Middleton and Alex Loudon Picture: EXPOSURE

facturer Blue Circle Industries. Alex first did an MBA at the London GONE TO ICELAND TRADE ANY MARKET Business School. WITH hindsight it all becomes clear. From there – if The Capitalist is cor- Richard Pennycook, finance director rect in connecting the well-spoken of Morrisons, was unable to collect WIN AMAZING PRIZES Alex Loudon who declined to com- his award for FTSE 100 FD of the Year ment yesterday with the Alex Loudon in person at the FDs’ Excellence who is dating the sister of the future Awards on 10 May because he had Every trade you place is another chance to win Queen – it was a short hop to gone to Iceland. SABMiller, the London and Iceland the supermarket, that is – Johannesburg-listed brewer of brands while his deputy Robin Brown collect- including Pilsner, Grolsch and Peroni. ed his trophy on his behalf, “Our people are our enduring Pennycook was no doubt busy prepar- advantage,” declared the beer busi- ing Morrisons’ ambitious £1.5bn bid ness, as it announced its solid March for the Baugur-owned chain, which 2011 year-end results last week. hit the headlines at the weekend. Just presumably not in the way Morrisons declined to comment on chief executive Graham Mackay imag- the acquisition, which would triple ined when he first penned that note the grocer’s tally of UK stores, and to investors… suggested linking Pennycook’s myste- rious absence at the awards to the Iceland deal less than two weeks later would be “presumptuous”. “Pennycook had something else on that evening so he was unable to AROUND THE WORLD attend – but I don’t know where he was,” said a senior Morrisons source. WITH EVERY TRADE Perhaps the investment banks who recently pitched to Pennycook and his strategy director Gordon Mowat to advise on the potential takeover might be able to shed some more light on his whereabouts… All bets are off: the victorious IG Warriors SOCIAL CLIMBERS THE traditional Maori Haka resound- ed through the City on Sunday, when RUGBY TACKLE more than 1,000 people took part in a MEANWHILE, the City’s sportiest 1,037-step charity stair-climb up the ditched their pinstripes in favour of Gherkin tower, which raised more rugby kit on Sunday in a charity than £275,000 for the Christchurch match that helped raise more than earthquake appeal. £20,000 for The Child Bereavement Some fundraisers dressed up as bot- Charity. tles of New Zealand wine and beer in The financial players were drawn the sponsored climb, which was from more than 30 City firms, but completed by City runners WIN an amazing experience every week, after a hard-fought final, the IG including David Riley of SJ Warriors from financial spread Berwin, Michael Evans of * betting company IG Group took Evans Randall (pictured including a fabulous trip around the world for two home this year’s Neptune City left) and Andrew Marshall Sevens crown. of KPMG. Sponsored by fund The New manager Neptune Zealand- Investment flavoured event Management, the was the brain- For more information visit event drew a child of two crowd of over London- www.cityindex.co.uk/world 1,000 to based Kiwi Richmond’s business- Athletic men, Kent Association Gardner and Spread betting and CFD trading can result in losses that exceed your initial deposit. Ground, Paul including Kendrick of some Evans Randall, familiar the invest- *Entry is restricted to UK residents aged 18 or over. Exclusions apply. Closing date is Friday 3rd June 2011 faces: for- ment banking at 10:00pm. Terms and conditions apply, please see www.cityindex.co.uk/world mer Ireland and Wasps and private player Rob Henderson equity group and Serge Betsen, a for- that half-owns mer player for France. the Gherkin.

12 News CITYA.M. 24 MAY 2011 Highest rate of

Euro bonds Richmond upon savings found in Thames TW10 6 Richmond area slide as firms £29,765 average savings ▲ FINANCE SEVERAL neighbourhoods in London Aberdeen AB15 4 and the south east have among the pick sterling highest average level of savings, the Halifax revealed yesterday. £26,130 Residents in one part of Richmond have the highest rate of savings in the ▲ BOND MARKETS average savings UK, with a section of Putney coming a BY RICHARD PARTINGTON seen a spike in popularity. The total close third. value of ruble bonds so far this year Outside south-eastern England, EUROPEAN bond issuers are turning is $10bn, up from $3.8bn a year earli- Putney SW15 6 some postcodes in Scotland were also away from euro denominated securi- er. among the highest for saver rates, ties in favour of sterling, dollar and “It’s difficult to pin a reason apart with two areas in Aberdeen occupying ruble products. from a lack of issuance in sterling last £22,557 top ten places. Overall bond issuance by European year,” said Ariel Bezlel, manager of average savings Nine of the top 10 neighbourhoods corporates has increased so far this Jupiter Asset Management’s strategic for savings rates are in London or year by 17 per cent to $182.5bn bond fund. Scotland, according to the data based (£113bn), according to data provider on Halifax’s own accounts. Dealogic. But issuance of euro- “The research also points to postal denominated bonds so far this year BOND ISSUANCE TRENDS areas in Harrogate building their sav- has slumped by 13 per cent to $83bn. ings pots to rival those in the south,” European firms have instead piled Year to 19 May 2011 said Halifax’s Flavia Palacios Umana. into the sterling-denominated bond Euro: $83bn A postcode in Harrogate registered market, where the total value of US dollar: $56bn the 10th highest savings rate. bonds issued has shot to $18.8bn so Overall, the south east has the high- far this year. GB pound: $19bn est average rate of savings out of all Meanwhile, issuance in dollar- Russian ruble: $10bn the British regions, according to the denominated bonds has continued to data. rise, despite the weakness and volatil- Year to 19 May 2010 Average savings totalled £6,653 in ity of the currency. the south east excluding London, with The total value of dollar bonds Euro: $96bn East Anglia coming a very close second issued so far this year is now at US dollar: $37bn with an average of £6,634. Source: Halifax $56bn, up from $37bn at the same GB pound: $8bn In London the average savings point a year earlier. savings accounts account held £6,211, above the UK Bonds issued in rubles have also Russian ruble: $4bn wide average of £6,074.

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*For business users only. Advance payment and fee applies. Official government fuel consumption figures in mpg (litres per 100km) for the E-Class range: urban 15.0(18.8)-45.6(6.2), extra urban 30.4(9.3) - 67.3(4.2), combined 22.1(12.8)- 57.6 (4.9). CO2 emissions: 299-129 g/km. Model featured is a Mercedes-Benz E 200 CDI BlueEFFICIENCY SE Saloon at £29,645.00 on-the-road including complimentary metallic paint and exterior styling package at £710.00 (on-the-road price includes VAT, delivery, 12 months’ Road Fund Licence, number plates, first registration fee and fuel). *Finance example based on a Mercedes-Benz E 200 CDI BlueEFFICIENCY SE Saloon with manual transmission and complimentary metallic paint on a 36 month (3+35 profile) Operating Lease agreement with an advance payment of £1,107.00. All payments subject to VAT. Excludes maintenance. £180.00 acceptance fee is payable in addition to and at the same time as the first rental. Based on 10,000 miles per annum. Excess mileage charges may apply. Rental includes first year’s Road Fund Licence only. Written quotations available on request, including alternative contract lengths and mileages. Credit provided subject to status by Mercedes-Benz Financial Services UK Limited, MK7 8ND. Guarantees and indemnities may be required. Finance offers are available on E-Class Saloon models ordered/credit approved between 1 April and 30 June and registered by 30 September 2011, excluding AMG and special request engines. **3 years complimentary Service Care offer covers first 3 scheduled services. 3 years based on service intervals of 12 months or 15,600 miles (whichever comes sooner). Service Care covers the manufacturer’s recommended service content only. Service Care offer is available for E-Class Saloon and Estate models up to and including May production and registered between 10 April and 30 June 2011, excluding AMG and special request engines. Service Care contracts must be activated by 31 July 2011. Offers cannot be used in conjunction with any other published offer from the Retailer. Offer subject to availability. Terms and conditions apply. Prices correct at time of going to press (04/11). Visit mercedes-benz.co.uk/offers CITYA.M. 24 MAY 2011 News 13 IFG reveals fresh takeover talks

ANALYSIS l IFG Group

▲ 1.90 FINANCIAL SERVICES (£190m). bid approach. 1.9 23 May IFG did not identify who had Renowned City investor Edmund ¤ BY RICHARD PARTINGTON 1.8 made the latest approach for it, but Truell is the financier behind IRISH financial services group IFG private equity firm Fiordland – Fiordland. The group was incorpo- 1.7 yesterday revealed a second takeover which is IFG’s top shareholder with rated in 2009 with the sole aim of 1.6 approach, as bid interest mounts for a 19 per cent stake – is believed to subscribing to an IFG share placing. 1.5 the London-listed firm. have expressed an interest in buying Shares of IFG, which rocketed The company said it had received the company. after it revealed it had been 1.4 an approach to acquire its entire Fiordland would be vying with approached by a potential suitor ear- 1.3 Renowned City investor Edmund Truell is issued share capital, which is cur- private equity rival Bregal Capital, lier this month, closed 8.6 per cent 1.2 the financier behind Fiordland rently valued at about €220m thought to be behind the original higher yesterday at €1.90. 28 Feb 18 Mar 7 Apr 3 May 23 May Pimco opens Yandex float fund to cash priced at top in on CoCos end of range ▲ CAPITAL MARKETS ▲ CAPITAL MARKETS BY RICHARD PARTINGTON BY RICHARD PARTINGTON PIMCO, the world’s largest bond fund RUSSIAN internet search firm Yandex manager, is launching a product yesterday appeared to be cashing in on designed to cash in on a new breed of a surge in demand for technology com- hybrid securities dubbed “CoCos” panies in the United States, despite being issued by banks. fears of a new dot.com bubble. Contingent convertibles, known as The firm, dubbed as the “Russian CoCos, are securities that convert to Google”, now plans to sell shares above equity if a measure of financial its initial price range, at between $24 strength is broken. They are deemed to and $25 per unit. It had initially tight- be a tougher form of funding for ened its share sale to a price between banks during periods of financial We’d rather talk about $20 and $22. stress. At the higher price, Yandex would Pimco is hoping to tap the emerging be the biggest float by an internet firm market for CoCos, and believes it could since Google raised $1.67bn (£1bn) in become a $500bn (£310bn) asset class. 2004. Fleming Family & Partners, which The sale would put shares in the is owned by one of the oldest banking company at least 23 times above next family dynasties, has provided seed year’s earnings. Google currently capital for the launch of the new trades at 13 times its anticipated 2012 fund, which will invest in high yield earnings. debt issued by banks, including The Moscow-based firm, which has CoCos, as well as existing Tier 1 debt. almost triple Google’s market share in The investment house, which holds Russia, is listing on New York’s Nasdaq assets under management of £4bn, cost savings than cloud computing stock exchange. provided the initial capital to estab- Yandex will look to raise an estimat- lish the fund and developed the ed $1bn in the float, selling a stake of investment strategy for the fund in Trends in technology come and go. We’ve delivered IT up to 18 per cent. The group will be val- conjunction with Pimco. ued at more than $6bn. The fund is designed to offer a high soluons for years and we prefer to talk to customers about Bankers from Morgan Stanley, yield to investors and relative capital saving money, improving efficiency, reducing business risk Deutsche Bank and Goldman Sachs security. It could also attempt to tap and enabling innovaon. We don’t just talk the talk either: stopped taking investor orders for pricing imperfections in the fledgling with 13 UK regional data centres and 700 expert staff we've Yandex shares late last week, a week CoCo market. already invested heavily, so you don’t have to. earlier than planned. The securities debuted following the Analysts played down concerns that financial crisis, after they were viewed At ICM we believe business should benefit from IT not just Yandex is fuelling a tech bubble, mak- as a more stable form of funding for buy IT. We think that's a refreshing approach for an IT ing positive comments about the firm. banks. British lender Lloyds was the company. If you agree, then leave the bits and bytes to us and “The connection to revenue is much first bank to issue CoCo bonds in 2009. we’ll deliver the right soluon for your business. stronger to a search vendor than it is to Since then, Swiss bank Credit Suisse a social networking vendor that has to and Dutch lender Rabobank have also Find out how at icm.co.uk or call 0844 863 3000 work up to that ecosystem,” said Rob issued the securities. Enderle, principal analyst at Enderle CoCo issuance is expected to pick up Group. as banks look to meet tough new capi- “Regional players in their own geog- tal ratio requirements being drawn up ICM is part of the Phoenix IT Group plc raphies could begin to nibble Google by European regulators. to death, or at least lock Google into The securities are expected to the US hemisphere as localised com- become a form of Tier 1 funding under petitors take more and more market the new Basel III rules. share,” he added. Procter & Gamble plans Indonesian deals Clyde & Co breaks £200m ▲ CONSUMER GOODS office. tax policy on crude palm oil, after it ▲ LEGAL SERVICES a particularly strong performance, “To meet the need they are steadily hiked the tax to 25 per cent with revenue growth of 39 per cent. BY HARRY BANKS preparing at least $100m to set up a in February from just three per cent TOP 20 UK law firm Clyde & Co yester- Clyde & Co chief executive Peter PROCTER & Gamble will invest $100m joint venture with the local partner a year ago, to do more to spur down- day reported a revenue rise of just over Hasson said: “Our Middle East, Asia (£62m) in the oleochemical sector in in the sector,” Hidayat added. stream processing in the country. 10 per cent for 2010-2011, taking it and Latin American offices enjoyed a Indonesia, the country’s industry High commodity prices and gov- The country is still reliant on through the £200m turnover barrier solid year, despite varying economic minister MS Hidayat said yesterday. ernment efforts to boost down- exports of raw materials, and is aim- for the first time. conditions.” “P&G is anticipating the need for stream industries have started to ing to move up the value chain. Revenues at the firm hit £212m for The firm will release its profits per 200,000 tonnes of fatty alcohol in attract investment in Indonesia over Agriculture companies are look- the past year, up from £192 last year. equity partner once figures have been the coming ten years from the past year. ing to take advantage of growing Around 59 per cent of the revenues confirmed, after increasing partner Indonesia,” Hidayat said following a Indonesia plans to offer fiscal wealth within south east Asia’s were generated from the firm’s UK headcount by seven per cent in the meeting with P&G officials at his incentives and restructure its export biggest economy. operations, but its US offices turned in past year. 14 News CITYA.M. 24 MAY 2011 Ryanair gives 26% increase in net flat forecast profits in 2010 despite profit

Ryanair boss Michael O’Leary predicted flat profits despite a 26 per cent rise in takings in 2010 ▲ TRANSPORT could affect airlines across Europe, BY HARRY BANKS but Ryanair said it did not expect a repeat of last year’s disruption which EUROPE’S largest low-cost airline cost the airline €30m (£26.2m) and Ryanair said yesterday high fuel costs investors instead homed in on its sub- Capacity cuts could be end of good times and a lack of growth in capacity dued outlook. would mean flat earnings this year Chief executive Michael O’Leary after a 26 per cent surge in 2010, send- said Ryanair planned to pay out divi- FOR the first time in its 25 year histo- growth will be limited to four per smaller impact this time round. ing its shares down 6.2 per cent. dends towards the end of 2013. ry, Ryanair is cutting capacity. When cent. He also said profits would be flat A share drop of six per cent yesterday The Irish airline, which operates winter 2011 rolls round the discount as oil prices push operating costs up was in line with the rest of the indus- more than 1,500 flights a day, said it ANALYSIS l Ryanair Holdings airline plans to ground 80 of its fleet by 13 per cent, versus an average rise try, but shares have fallen by more than expected traffic growth to slow to including 50 new deliveries – even if in fares of 12 per cent. ten per cent since the start of the year, 3.7 ¤ 3.36 four per cent in 2012 from eight per 23 May the UK experiences an Indian sum- The caution over forecasts is coun- and a wary outlook won’t help. cent last year and that increases in 3.6 mer that lasts until next February. tered by a bullish line from Ryanair O’Leary will be hoping that the average fares would be eaten up by 3.5 A winter pullback on capacity is on the eruption of Iceland’s smoke clears sooner rather than later, higher fuel costs. not unusual, but pulling more than a Grimsvotn volcano. The airline and that expansion plans aren’t on Ryanair’s 26 per cent surge in net 3.4 quarter of its fleet out of service will booked an exceptional charge of the back burner for too long. € £ profit for 2011 to 401m (£349.8m) 3.3 inevitably hit passenger numbers. 26m from the cost of similar disrup- was at the top end of guidance and Chief executive Michael O’Leary tion last year after it had to ground above the €382m forecast by analysts. 3.2 seems happy to guide down at the around 10,000 flights, but O’Leary BOTTOMLINE A new volcanic eruption in Iceland 3.1 moment, predicting that passenger said yesterday he expected a much Analysis by Elizabeth Fournier prompted worries the ash cloud 28 Feb 18 Mar 7 Apr 3 May 23 May Commerzbank Stelios rants as Michels exits easyJet shares hit after

▲ TRANSPORT able contribution to the develop- blamed Michels, who as interim hotel discounted issue BY ALISON LOCK ment of easyJet”, while on 5 May chairman reportedly offered arm to M&S chair Robert Swannell credited Harrison the large salary to try and its US SIR DAVID Michels, the former his efforts recruiting new chief exec- keep him at the firm, for “huge namesake Hilton chief executive who once utive Marc Bolland when Michels operational failures” last summer. Hilton Hotels ▲ BANKING hoped to chair Marks & Spencer, chaired its nomination committee. Michels has also been linked to Corporation. said he would step down from the But Michels’ exit from easyJet governance controversy at M&S. As SHARES of German lender board of easyJet yesterday in his sec- prompted a tirade from founder Sir senior independent director there Commerzbank dropped as much as ond such announcement in a Stelios Haji-Ioannou, who accused he allowed Rose to become executive 5.6 per cent in early trading yesterday month. him of destroying shareholder value chairman, which enraged share- after the firm priced the sale of Michels, easyJet’s deputy chair- and paying former chief executive holders. Michels remains chairman around 2.4bn shares at a steep dis- man, will leave the airline at the end Andrew Harrison £1m for just three at wealth manager London & count to their market value. of this year, when he completes his months’ work to June 2010. Capital and previously chaired The sale will raise around €5.3bn second three-year term. Just three “I believe that David Michels has Paramount Restaurants. (£4.6bn) and is a step in weeks ago he said he would step done the right thing by resigning He retired from executive life Commerzbank’s previously-announced down as deputy chairman of retailer from the board of easyJet today,” in 2007 after 40 years running plan to repay €14.3bn of state aid. Marks & Spencer at the end of 2012, Stelios said in a statement. leisure and entertainment Shares in Commerzbank eventually again after two terms. Harrison left easyJet after clash- businesses, most promi- closed 2.8 per cent down at €3.84 in EasyJet chairman Sir Michael ing with Stelios for months over the nently leading the Frankfurt, having fallen as much as 5.6 Rake said Michels “made a very valu- airline’s accounts. However, Stelios £3.3bn sale of Hilton’s SIR DAVID MICHELS per cent at the start of trading.

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H2O Markets Limited is authorised and regulated by the Financial Services Authority. Registration number 511520. 18 Economics CITYA.M. 24 MAY 2011 China and Euro in slowdown Interest rates on personal

▲ loans reach a 10-year high WORLD ECONOMY All figures above 50 indicate some dragged down by temporary factors, BY JULIAN HARRIS economic growth. according to BNP Paribas. While expansion in Germany hit “The main factor behind the fall of ECONOMIC activity has slowed in the the brakes (down to 56.4 from 59.2 in manufacturing is the collapse of actu- ▲ UK ECONOMY tomers through higher loan rates,” Eurozone and China, two “flash” sur- April), the Eurozone core continues to al output, which is partly due to Moneyfacts’ Michelle Slade said. veys revealed yesterday. massively outperform struggling Japanese supply issues after the THE AVERAGE rate of interest on a “A few years ago lenders offset low China’s factories expanded at their peripheral economies. quake,” said senior economist personal loan has rocketed to a ten- loan rates by recouping revenue slowest pace in 10 months in May, “The rest of the region saw a near- Dominique Barbet. “This part of the year high, the Moneyfacts website through payment protection insur- with a purchasing managers’ index stagnation of output in May and a fur- slowdown is likely to be corrected in revealed yesterday. ance, but recent judgements mean (PMI) easing to 51.1 from 51.8 in April. ther drop in employment,” said Markit the coming months.” A loan of £5,000 costs an average of this is no longer possible.” Eurozone area business output, economist Chris Williamson, painting Across the Eurozone as a whole 12.7 per cent, its research has found. Interest rates have not been higher meanwhile, slowed considerably this a grim picture for Eurozone countries manufacturing growth dipped to 54.8 “In a market where household than the current rate since May 2000, month, down from 57.8 to 55.4 in a other than France and Germany. from 58 in April. Activity in the service finances are being stretched the risk when they averaged 13.1 per cent. The separate PMI survey – a seven-month In France output slipped to 60.5, sector held up stronger, down only 1.3 of customers not repaying the loan figures are not adjusted for inflation, low. from 62.4 in April, yet this was mainly points, to 55.4. increases and this is passed onto cus- which erodes the value of money.

NOWOTNY: EUROZONE RECOVERY IS ON TRACK NEWS | IN BRIEF

Mixed inflation data in Singapore Nationalised Inflation in Singapore slipped to 4.5 per cent last month, official data showed yesterday. Compared to March, prices were flat, the department of statistics said. Yet the core inflation measure tracked by the monetary authority of banks lending Singapore rose 0.6 per cent month-on- month and 2.2 per cent from a year ago, faster than in March. Hong Kong price pressures build Price pressures in Hong Kong jumped less to the UK last month, to an annualised consumer price index reading of 4.6 per cent.

▲ BANKING members of the Bank’s monetary Swiss money supply edges up BY JULIAN HARRIS policy committee, was conducted to Growth in Switzerland’s M1 monetary find whether government impinge- supply slowed to 8.1 per cent annualised NATIONALISATION of banks outside ment on banks had resulted in “a in April, down from 8.4 per cent the pre- the UK has resulted in greater “finan- new type of protectionism”. vious month, figures showed yesterday. cial protectionism”, the Bank of Following the great recession of The M3 money supply, meanwhile, accel- England said yesterday. the 1930s, trade protectionism was erated slightly, from 6.8 per cent growth Banks taken over by the state heavily used, deepening the trough in March to 6.9 per cent in April. The charge higher rates to foreigners and according to many economists. annual growth in the M2 indicator lend less across international bor- “This time around, there is only slowed to 7.5 per cent from 7.8 per cent. ders, the Bank’s report found. muted evidence of traditional trade Yet UK banks supported by the gov- protectionism,” the report said. Chicago figures hit US outlook ernment following the credit crunch “But the public sector has made American stock futures were hit yester- have not succumbed to such nation- substantial interventions in financial day after an official gauge of economic alistic practices, the authors claimed. markets around the world, particu- activity surprisingly dipped. The Chicago “Our key finding is that after larly in the banking sector, while Fed national activity index for April fell nationalisation, foreign banks cross-border bank lending has fallen.” to a negative reading of 0.45, from a reduced British [loans] as a share of Eamonn Butler of the Adam Smith positive reading of 0.32 in March. This total lending by about eleven per- Institute commented: “I am not sur- was the lowest reading since last centage points, and increased inter- prised that foreign lenders might August and reversed three straight est rates on new loans to UK regard Britain as a bad debt, given months of gains. Negative figures are a residents by 0.7 per cent,” the report the huge government debt. signal of below-trend growth. explained. “But the current government “By way of comparison, nationali- seems resolutely set on bringing the Israel tightens monetary stance sation does not seem to affect either national books back into balance and RECOVERY in the Eurozone is on a “sustainable path,” European Central Bank (ECB) offi- The Bank of Israel raised its benchmark the lending or interest rate decisions denationalising the banks as soon as cial Ewald Nowotny said yesterday. "One cannot exclude the possibility of a slowdown in lending rate by a quarter-point to 3.25 of British banks.” possible, so there is no real need for recovery, but I think that the risks of an L-shaped or W-shaped development have clearly per cent yesterday, in a bid to tackle the The study, supervised by external alarm,” Butler added. decreased,” the ECB governing council member said. Picture: REUTERS inflationary environment.  #$ ##" "#!   " #2"%11 "&)!'* % %02#'!3120#'#0(($1 "#$2"''#40106

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555(#1%(3$ * ( ' '# ) ! ! '+ CITYA.M. 24 MAY 2011 News 19 Alterian announces reshuffle as it slides to a pre-tax loss

▲ TECHNOLOGY Chief executive David Eldridge quit ANALYSIS l Alterian the firm last month after it 200 p MARKETING software provider announced a profit warning follow- 180 Alterian has swung to a full-year pre- ing delays to a licensing contract. tax loss, hit by an increase in costs as Alterian reported a pre-tax loss for 160 it seeks to expand the business. the financial year of £4.4m, com- 108.25 140 The embattled firm also said it pared with last year’s profit of £6.7m. 23 May plans to restructure its board. Revenue fell almost three per cent to 120 Chairman Keith Hamill said he will £37m. A company spokesman said: “The 100 defer his retirement until the process results reflect increased costs aimed at to recruit a chief executive was over expanding the business. These were not 80 and a new chairman was lined up. matched by growth in revenues.” 28 Feb 18 Mar 7 Apr 3 May 23 May

Peppa Pig is one of Entertainment One’s biggest hits Picture: REX Peppa pushes profit upward for her owner

▲ MEDIA and revenue improvements over the BY STEVE DINNEEN next 12 months. He said: “We have lots of very prom- PEPPA Pig continues her trot to world ising releases coming up, especially in domination, helping push creator the back half of the year.” Entertainment One’s pre-tax profits He reiterated plans to create a pro- up 39.2 per cent to £32.3m yesterday. duction base for its family division in The firm says it is poised to the UK and said he is considering announce a merchandising partner acquisitions. However, Throop ruled for the cartoon pig in the US, where out a bid for Pinewood Studios, saying the series has already smashed into the inflexibility of a fixed studio of the top ten children’s shows since it that size is too big a risk. began screening in February. Peppa has already sold £200m ANALYSIS l Entertainment One worth of toys in the UK and some ana- 165 p lysts think sales in the US could hit 154.50 $1bn (£620m). Entertainment One, 160 23 May which also owns the distribution rights to movies including the 155 Twilight Saga, saw its revenues rise 12.1 per cent to £469.7m, while its debt 150 fell from £63.2m to £38.6m. 145 Chief executive Darren Throop told City A.M. the firm has had a “good, 140 solid year” and expects further profit 28 Feb 18 Mar 7 Apr 3 May 23 May European Commission telecoms laws come into force across EU

▲ TELECOMS sonal data online. They will also outlaw contracts last- NEW laws will come into play across ing more than 24 months and force Europe tomorrow aiming at increas- operators to offer 12-month contracts. ing competition in the telecoms sector. The main UK operators say they The European Commission rules already adhere to the rules. include the right for customers to The Commission says the rules will switch telecoms operators in just one help to create an even playing field day without changing their phone across Europe and has threatened to number, the right to more clarity launch infringement proceedings about the services customers are against any countries that have not offered and better protection of per- implemented the changes. 20 News CITYA.M. 24 MAY 2011 Exxaro buys Territory Resources Gulf Keystone ready to export in bid to enter iron ore market

▲ more oil, said the Kurdistan Regional Oil exports from Kurdistan restart-

ENERGY ▲ Government (KRG) had asked it to ed in February after years of wran- the last closing price. The deal values BY HARRY BANKS MINING begin exporting oil at an initial vol- gling with Baghdad, and the KRG said Territory at A$123m, Exxaro said. GULF Keystone Petroleum has said it ume of 5,000 barrels of oil per day. in May that it received a payment for SOUTH African diversified miner Analysts said the price was expen- is preparing to export oil from “The company views the recent exports from the government of Iraq Exxaro bid $130m (£80.7m) in cash for sive given the short three to five-year Kurdistan after a long argument over announcement by the KRG confirm- from which it planned to pay oil Australia’s Territory Resources, mak- life span of Territory’s mine. payments between the semi- ing release of the first oil export pay- firms. ing a pricey wager to expand into iron Territory produces approximately autonomous region of Iraq and ment to the KRG as an extremely The company, which in April said it ore mining. 1.6m tonnes of lump and fine direct Baghdad looked to be easing. positive development for all the oil could swing to a profit next year if Exxaro, one of South Africa’s largest shipping ore. It also owns rights to The British company, which also producers in the Kurdistan Region of exports begin, said it still needed a coal miners, said yesterday it had iron ore tenements and has access to said yesterday that two of its wells in Iraq,” said operations chief John final sign-off from the KRG before offered A$0.46 per Territory share, rep- China via the port of Darwin, Exxaro Kurdistan had found evidence of Gerstenlauer. commencing exports. resenting a 64 per cent premium to said.

STOBART UPBEAT DESPITE INCOME DIP NEWS | IN BRIEF

Wichford plots Redefine merger TransAsia to Property investment company Wichford swung to an annual loss yesterday, as it unveiled a proposal to merge with Redefine International. The firm said it had been a challenging year, with prop- erty values hitting its net asset value use Rolls for and causing a pre-tax loss of £12.3m, and said a tie-in with Redefine would shore up its debt position and pave the way for a pre-emptive capital raising in engine work the future. Losses worsen at Readymix Irish building materials firm Readymix posted a wider pre-tax loss of €4.2m ▲ INDUSTRY airlines. The company is currently (£3.7m) for the first three months of the pursuing German engine-maker year compared to last. The company said BY MARION DAKERS Tognum, in a joint bid with Daimler, it expects turnover to fall further during ENGINEERING firm Rolls-Royce yes- in an attempt to beef up its marine the year, as it admitted that revenues fell terday announced a $150m (£93.2m) engines division. 27 per cent in the quarter compared with deal to service the planes of The offer period for its €3.4bn last year. Readymix blamed the slump on Taiwanese airline TransAsia. (£2.96bn) bid ends on 1 June. poor volumes and pricing pressures. The contract to maintain engines on two Airbus A330 aircraft is the ANALYSIS l Rolls-Royce Group Lloyds poaches Aviva life boss first time Rolls has worked for the car- 660 p 620.00 Lloyds Banking Group has poached rier. 23 May Aviva’s head of UK life insurance to run Phil Harris of Rolls Royce said: 640 its own insurance business. Toby Strauss “TransAsia Airways is well placed to 620 had worked for Aviva since 2008, and benefit from growth in the will join the firm as group director of Taiwanese aviation market. We are 600 insurance and a member of the group delighted the airline will be joining executive committee, subject to FSA our family of Trent operators, select- 580 HAULAGE group Stobart yesterday said its pre-tax profits last year slipped 11 per cent to approval. Lloyds chief executive António ing market-leading Trent 700 technol- £29.5m, though revenues rose £53m to £500.4m from continuing operations. The Horta-Osório has made a number of sen- ogy and support.” 560 Cumbria-based transport firm said fuel costs and disruptive winter weather had dam- ior hires since taking over the top job in Rolls now services more than 500 28 Feb 18 Mar 7 Apr 3 May 23 May aged its bottom line, but was upbeat about future trading. Picture: PA March. Vectura narrows its losses and reveals Profit surge of 150 per cent for the organic ingredient supplier Treatt

positive progress from lung drug trials ▲ FOOD & BEVERAGE Treatt’s profit before tax for the six months to 31 March was £3.7m, com- TREATT, which supplies organic pared with £1.49m a year ago. ▲ PHARMA ingredients to the flavour and fra- Group revenue increased 29 per Revenues rose seven per cent to solidated operations in Chippenham, grance industries, has reported an cent to £35.78m from £27.72m in the DRUG company Vectura yesterday £42.9m, and the firm ended the year but the restructuring had pushed up increase in pre-tax profit for the first previous year. narrowed its annual pre-tax losses to with a cash pile of £74.4m. Royalties research and development costs for half of 2011, as revenues climbed 29 Treatt said that the business had £13.3m as it reported encouraging were in line with last year at £13.6m. the year by four per cent to £37.7m. per cent on strong demand and high- maintained the strong momentum trial results for its new medicine for The company said it had made Vectura’s shares closed down 1.8 er raw material prices. that it showed towards the end of chronic obstructive pulmonary dis- nearly £6m of cost savings after it per cent at 67.5p, giving the firm a The company also lifted its interim 2010, with demand growth across its ease (COPD), due to go on sale in 2012. closed its Nottingham plant and con- market cap of £224.6m. dividend. product portfolio.

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Photography: Simon Procter Attire: Vivienne Westwood Millinery: Stephen Jones CITYA.M. 24 MAY 2011 News 21

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

also head of education at Barclays he was head of client consulting. Claydon, Natalie Diep, James Gubbins Agent Provocateur Corporate, has been appointed as and James Halstead. Retail veteran Chris Woodhouse has been head of local authorities. Grant Thornton appointed as non-executive chairman of luxury The accountancy firm has appointed Xenon Capital Partners retailer Agent Provocateur. Woodhouse, director Artemis Nigel Masters as a senior adviser to Philip Jackson has been appointed as a of Debenhams and chairman of restaurant group Mark Page and Laurent Millet will join its life actuarial team. Masters previ- senior adviser at the investment firm, Gondola, which owns Pizza Express and ASK, the fund manager in September from ously worked with Zurich Financial based in Hong Kong. Jackson was for- will take a small stake in the lingerie business, Liverpool Victoria Asset Management. Services, where he was group chief merly chief executive of JP Morgan’s which he will oversee alongside his existing role. They will manage the firm’s UCITs life actuary and president of the $860m Asian Infrastructure and Agent Provocateur, owned by private equity Artemis European Opportunities Fund, Institute of Actuaries. Related Resources Opportunity fund. firm 3i, is expanding overseas, with new stores which will launch later this year, sub- planned this year for New York and Los Angeles. ject to FSA approval. Covington & Burling Deloitte The law firm has extended its life sci- Aviation security expert Helen Gripton Muse Advisory ences practice by poaching a team of has been appointed to the business Barclays Corporate team, has been appointed as The pensions consultancy has appoint- four life sciences corporate partners advisory firm’s corporate security team, David McHattie, currently head of Barclays Corporate’s head of chari- ed Nick Wyld as associate director. He from the London office of Morrison & where she will advise airports and air- Barclays Corporate’s social housing ties. In addition, Chris Hean, who is joins from Stamford Associates, where Foerster. The partners are Paul port operators on aviation security.

To appear in CITYMOVES please email your career +44 (0)20 7092 0053 updates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com

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ANALYSIS l Mitchells & Butlers 315.50 ANALYSIS l TalkTalk 149.10 ANALYSIS l ITE Group 242.10 340 p 23 May 150 p 23 May 260 p 23 May

250 320 140 240 300 130 230 280 28 Feb 18 Mar 7 Apr 3 May 23 May 28 Feb 18 Mar 7 Apr 3 May 23 May 28 Feb 18 Mar 7 Apr 3 May 23 May MITCHELLS & BUTLERS TALKTALK ITE GROUP JP Morgan has downgraded the bar and restaurant operator from “over- UBS rates the telecommunications company a “buy” and has a target price Goldman Sachs rates the events company a “buy” and has added the firm weight” to “neutral” on the back of recent share price strength, and has of 146p. The broker thinks the firm is well placed to increase its subscrip- to its conviction buy list with a raised target price of 350p. ITE is viewed as lowered its target price by 48p to 360p. The broker thinks the current tions base in 2012 after integration issues this year, thanks in part to a six an attractive emerging market play, well positioned to benefit from ongoing share price reflects the dilutive impact of major disposals including 333 per cent increase in average broadband customer spend. It predicts solid recovery in Russia. ITE’s strong balance sheet means Goldman expects to pubs. However, it expects M&B will offset this by reinvesting £185m in the growth with relatively fixed capital expenditure and expects cash flow to see further bolt-on acquisitions to augment its organic growth from inter- firm’s key brands. nearly treble by 2014. national customers. Fresh Eurozone debt fears see Doubts over factory FTSE plunge to two-month low growth hit Wall St

brings into doubt the solvency of the British Airways owner International tries being downgraded ... it’s just a ECB because they are a big big holder Airlines Group (IAG) off 5.1 per cent, negative cocktail right now.” THELONDON of Greek bonds.” and tour operator TUI Travel 3.2 per THENEW YORK Negative ratings actions on Greece Miners were out of favour as cop- cent weaker. IAG shares were also and Italy and regional election results per prices fell, dented by the worries undermined by a negative read-across in Spain raised concerns about the REPORT over Eurozone debt and weaker from Ryanair, which blamed high REPORT deepening of the Eurozone’s debt demand from top consumer China. fuel costs and a lack of growth in problems. Investors worry that voter ENEWED concerns about the Anglo American was the worst off, capacity on flat earnings. Its shares rebellions against austerity plans Eurozone debt crisis triggered down 4.1 per cent, while Antofagasta fell 5.3 per cent. S stocks closed at their lowest could put some government debt at a steep sell-off of Britain’s top shed 3.9 per cent after China’s Elsewhere, British Land slipped 2.8 levels in a month yesterday in a risk of default. Rshares yesterday, led by com- imports of refined copper declined per cent as both Panmure Gordon sign of increasing doubt that The euro hit a two-month low modity stocks, with some analysts more than 48 per cent year-on-year in and Peel Hunt downgraded their rat- Uequity markets can weather against the US currency. and investors seeing little on the hori- April. ings for the blue chip real estate recent weakness in global manufactur- The Dow Jones industrial average zon to tempt investors back into the Integrated oil company stocks and group following its full-year results. ing and demand. dropped 130.78 points, or 1.05 per market. banks also exerted heavy downward Next was one of only two gainers Industrial, energy and technology cent, to 12,381.26. The Standard & The FTSE 100 index ended at its pressure on the blue-chip index, as on the FTSE 100 yesterday, up one per stocks, closely related to growth, were Poor’s 500 lost 15.90 points, or 1.19 per lowest closing level since 23 March, investors rotated out of assets per- cent, recovering from declines made among the day’s top decliners. Poor cent, to 1,317.37. The Nasdaq off 112.60 points, or 1.9 per cent, at ceived as risky. in the previous session, with traders manufacturing figures from Germany Composite fell 44.42 points, or 1.58 per 5,835.89. citing optimism ahead of peer Marks and China were a surprise and gave cent, to 2,758.90. Fears of further sovereign debt RISK OFF & Spencer’s full-year results today. investors reason to shed positions in In a sign of technical weakness, the crises were heightened after ratings The FTSE 100 volatility index, a M&S slipped 0.5 per cent, outper- those industries. S&P 500 closed below its 50-day mov- agency Fitch downgraded Greece’s barometer of investor anxiety, hit a forming the broader market. Mining machinery maker ing average for the first time since 19 debt by three notches on Friday to two-month peak yesterday, up nearly Capita, was the other bright spot Caterpillar, a Dow component, lost 2.3 April. It is also at its lowest level since ‘B+’, and rival Standard & Poor’s cut 16 per cent. The higher the index, the on the blue-chip index, up 1.6 per per cent to $101.89, while the S&P that day. its outlook for Italy to “negative” lower investors’ appetite for risky cent, as traders pointed to results industrial sector index fell 1.4 per cent Global stocks as measured by MSCI from “stable” the following day. assets such as stocks. from fellow outsourcer Mitie. Its and the S&P info-technology sector dropped 1.8 per cent, the biggest daily Doubts about austerity measures “I think there could be continued shares rose five per cent. index declined 1.5 per cent. decline in more than two months. in Spain added to the worries after selling pressure as technically the The drama surrounding the The stronger dollar hurt commodity ANALYSIS l FTSE 5,835.89 the country’s ruling Socialist party FTSE and other European markets are 23 May Eurozone’s debt crisis added to prices and stocks in the energy and was defeated in regional elections. starting to break down from their 6,100 investor anxiety. It furthered a recent basic materials sectors. Large “It’s becoming less about Greece uptrends,” said Lex van Dam, hedge 6,000 trend of selling commodities, the exporters, which have benefited from now and more about the contagion fund manager at Hampstead Capital, euro, and stocks in tandem. a weaker US currency, were also hit effect,” Michael Hewson, market ana- which has $500m of assets under 5,900 The main driver of the market's hard. Shares of Coca-Cola fell 1.2 per lyst at CMC Markets, said. management. 5,800 decline is “a combination of global cent to $67.49 and equipment manu- “There’s also the fact that you’ve “To see the markets down another economic cooling and an increase in facturer Joy Global dropped 3.1 per- got these differences of opinion five per cent from here over the com- 5,700 risk from Europe,” according to Paul cent to $87.54. between ECB policymakers and ing weeks would not surprise me.” 5,600 Zemsky, head of asset allocation at ING “A dollar rising is near-term negative European policymakers with respect Travel stocks fell as a volcanic ash in New York. for stocks while commodities [falling] to debt restructuring. The fact that cloud from Iceland threatened to 5,500 “Throw in the Greek downgrade on can have both positive and negative it’s being openly discussed obviously cause disruption to flights, with 24 Feb 11 Mar 21 Mar 20 Apr 16 Mar Friday, warnings about other coun- aspects,” ING’s Zemsky said. 22 Wealth Management CITYA.M. 24 MAY 2011

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Elliotticians practise LITTLE over a year ago, Greece was in the headlines as the parlous state of its public finances became a wavering theory apparent. At the same time, the US Federal Reserve Awas planning an exit strategy from its first round of that doesn’t warrant quantitative easing (QE), and there was a major volcanic eruption in Iceland. their bold claims, As the speculation grew as to how quickly the Fed would unwind its balance sheet, which stood at $2.1 tril- writes Philip Salter lion back in June last year, investors began to reduce their exposure to risk assets. Equities fell broadly. The dollar ral- lied and commodity prices, led by oil, declined. Precious N 1938, the former accountant Ralph metals held up well, in stark contrast to their poor per- Nelson Elliott wrote The Wave formance during the financial crisis, while US Treasuries Principle. A year later, the magazine also pushed higher. The fact that Treasury yields fell in the IFinancial World commissioned a face of reduced Fed support was counterintuitive. But it series of articles, which spread his reflected a flight to relative safety given the European message to a wider audience. It was an debt crisis, and the risk of capital losses in equities. idea with huge implications for predicting As baseball legend Yogi Berra said: “It’s like deja vu all market movements, based on the premise over again.” One year on and equity investors are begin- that “because man is subject to ning to reduce their overall market exposure as the rhythmical procedure, calculations European debt crisis clicks up several gears. Not only is the having to do with his activities can be pro- situation in Greece reaching a critical state, but now Italy jected far into the future with a justifica- has been thrust into the spotlight following S&P's decision tion and certainty heretofore to place the country on a negative outlook. On top of that, unattainable.” The theory went out of ANALYSIS l Elliott Wave Cycle Spanish protests and the defeat for the incumbent social- fashion until his protege and champion, ists at the weekend’s local elections have heightened the Merrill Lynch’s Robert Prechter, made it 5 tensions in the Eurozone. There is an ongoing flight into popular again in the 1970s, with A J Frost, b the Swiss franc which has taken the currency to a fresh in their classic work: The Elliott Wave record high against the euro. Principle – The Key to Stock Market Profits. 3 As the Fed’s current asset purchase programme draws Traders and investors use Elliott Waves a to a close, its balance sheet is now approaching $2.6 tril- 4 to judge the movements of markets 1 c lion. Yet despite the unprecedented and coordinated global within different timeframes – from the monetary and fiscal stimuli, concerns are growing again multi-century grand supercycle, down to about the fragility of the world economy. GDP growth subminuettes, measured in minutes, and 2 forecasts are being massaged lower while inflation expec- everything in between. No matter the tations are increasing. The unemployment situation level of analysis, the fundamental 5-3 pat- remains bleak across the major economies, with jobless tern of the Elliott Wave remains constant Surfing Elliott Waves is an acquired taste Picture: REX claims trending higher. Last week’s US housing data was (see graph). Traders and investors use past dismal, and PMI data is deteriorating. As happened a year data to spot these patterns, trying to time of subjectivity in interpreting wave struc- level.” ago, investors are increasingly moving out of cyclical the jump on board impulsive waves and tures, with for instance alternative counts Elliott’s own confidence in his intellec- stocks and towards defensives, or heading to the sidelines predicting corrective waves. However, often producing significantly different tual prowess can be charted in his own completely. Without the tailwind provided by QE, this though the 5-3 pattern is an interesting interpretations of likely future price progress from writing a book on Tea Room trend looks likely to continue. observation, many traders and investors movements.” This means traders “often and Cafeteria Management to authoring remain unconvinced by its predictive pow- call major turning points in the market a the boldly titled Nature’s Law – The Secret ers. number of times before they occur, even- of the Universe. Of course, as Jones says, as Michael Hewson of CMC Markets says tually proving correct” says Manoj Ladwa trading is all about making money, if it the problem is that there is no starting of ETX Capital. He adds: “Even a broken works for you “more power to your point, making it impossible to know clock is correct twice a day.” And David elbow.” However, Elliotticians aside, most where we are in the cycle. While Malcolm Jones of IG finds it overcomplicated: traders and analysts agree that there are Pryor of www.spreadbettingcentral.co.uk “Plenty of technical analysis is subjective simpler, more flexible and better predic- says: “In practice, there is a large element but this does take subjectivity to another tive technical tools on the market. TRADE EQUITY CFDs FOR THE PRICE WITH GFT.* 1/2 SPREAD BETS | CFDs | FOREX Choose from GFT’s extensive range of equity CFDs and for a limited time, get 50% off the commissions.* free phone 0800 358 0864 Visit gftuk.com to open an account today. gftuk.com

GFT Global Markets UK Ltd. is authorised and regulated by the Financial Services Authority. *Minimum depost required and valid for 60 days from account opening date. CD03UK.158.051311 When trading CFDs, forex and spread bets it is possible to lose substantially more than your initial deposit. 24 Wealth Management | Contracts for Difference CITYA.M. 24 MAY 2011 QE2: one is not amused by the potential for US equity downturn Traders should be looking towards the end of the Federal Reserve’s quantitative easing program and beyond, writes Craig Drake

HE sheer size of the numbers tive easing program, the US central bank involved in the Federal Reserve’s has tripled the amount of liquidity that it quantitative easing program (QE2) had made available. However this Tcan be difficult to comprehend. By marathon monetary print-run has not comparison, Queen Elizabeth II receives a resulted in a corresponding tripling of the paltry £7.9m per annum from the Civil money supply. List. This is nothing compared to the The graph right comes from a report by $600bn of US Treasuries bought by the Richard Koo, chief economist at Nomura Federal Reserve during this cycle of quan- Research Institute. It shows the US mone- titative easing – which is enough to build tary base along with the money supply 888.4 RMS QE2 ocean liners (adjusted for and outstanding bank loans and leases. It inflation). shows the sharp diversion of these three The massive printing of money by the indicators following the 2008 financial cri- Fed in order to fund this unprecedented sis and the ensuing money printing. Since scale of purchases of Treasuries has had a then, liquidity has hit nearly 300, but the huge effect on the US currency. But it has money supply remains at 115. also had an inevitable effect on equity In the fallout from the Lehman markets. Brothers implosion, businesses moved to Her Majesty was unavailable for tips on deleverage, meaning that investors were how CFD traders should position them- unable to increase their holdings of pri- QEII next to RMS ANALYSIS l Liquidity and the money supply selves leading up to the expected end of vate sector debt. With the increase in T- QE2 QE2 (but according to palace insiders, she bills being bought up by the Fed, funds 300 is unsurprisingly tipping Carlton House were instead directed towards equities Picture: GETTY Monetary base Rebased: August 2008 = 100 for the Derby). and commodities. 260 Money supply (M2) In the absence of royal authority, So how should traders position them- Michael Hewson, the king of CMC selves as the second round of QE comes to Loan and leases in bank credit Markets’s market analysis said “the a close? According to Manoj Ladwa, senior 220 money has to go somewhere, and it has trader at ETX Capital: “I think the defla- pushed equity markets higher. The next tion in equity prices is already underway. week will be key for the future of the Fed’s By pumping more money into the US 180 quantitative easing plans. First quarter economy, the Fed effectively brought rates GDP is set to be released, and further dete- down to sub-zero levels. QE had the effect rioration of economic data will increase of pushing money into equities and com- 140 Down the pressure on the Fed to embark on modities as money in a bank account was 22% QE3.” earning nothing. But closing down QE and with corporate earnings having 100 LIQUIDITY VERSUS MONEY SUPPLY potentially peaked, there is little upside Since the beginning of the Fed’s quantita- left for stocks.” Jan 08 Apr 08 Jul 08 Oct 08Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10Jul 10 Oct 10 Jan 11 Apr 11

THE TIPSTER uted to market volatility created by the Middle East political situation. The big news PROFITS COULD was that electronic trading in CDS had hit the $300bn mark, which is quite significant BE GROUNDED and shows where the trend may be heading. At these levels, some investors may see this BY ASH CLOUD as an attractive buy. Capital Spreads quotes 473.5p-474.3p Aveva Group has more or less traded sideways for the last 6 months, but has cre- ITH another ash cloud looming, ated a nice little range that CFD traders can attention will inevitably turn to the play – buying between 1,500-1,550p and airline sector that saw such high selling between 1,630-1,650p. Aveva releas- Wlevels of disruption back in April es earnings on Wednesday, so look to play 2010, when major airlines saw their profits the edges of this range again unless a major take a battering on the back of long periods event is revealed in the details. Spread Co of aircraft down-time and general flight dis- offers a spread on Aveva Group of 1,588.8p- ruption. Admittedly, authorities know what 1,593.2p they’re dealing with this time, and the blan- Burberry is set to report this Thursday ket shut-down of airspace that we saw last and expectations for the group are good. It year seems somewhat less likely. But the has seen a sharp increase in share price prospect of some disruption cannot be over- since mid-April – from around 1,130p to looked altogether. IG Markets is currently touching over 1,340p. The global luxury offering a price on Deutsche Lufthansa of goods market is recovering much faster €14.97-€14.99 than we expected and it is largely down to Shares in ICAP, the world’s largest inter- big demand and growth from China and dealer money broker, have been falling quite Russia. With this set to continue, it could steeply since the beginning of the month, prove very beneficial for household names from nearly 530p to as low as 466p. Good such as Burberry. Capital Spreads quotes figures were reported last week that saw 1,329.3p-1,334.7p Another ash cloud is heading to skies near you full year earnings jump 61 per cent – attrib- Craig Drake Picture: REUTERS Where is the price of oil heading? If you know what affects the price of oil and have an opinion on which direction it’s going, you should consider CFD trading with IG Markets. Take a position on a wide variety of commodities and other markets with the UK’s number one CFD provider .* CFD trading can result in losses that exceed your initial deposit. Discover more at igmarkets.co.uk or call 0800 195 6300.

* Investment Trends 2010 UK Spread Betting/CFD Report. 26 Lifestyle CITYA.M. 24 MAY 2011 Episode 13: Fake tans: the golden rules Jermyn Street Self-tanning is bigger than ever. Lucie Greene discovers the do’s and don’ts of perfect application

T’S that time of year again. With the Pictured right, the prospect of unveiling bare legs and female cast of The arms for the summer weather, many Only Way is Essex. Iof us are heading straight to the self- Below, St. Tropez tanning counter. (Not least the cast of Everyday Spray, ITV2’s “The Only Way is Essex”, whose col- £20.45. Asos.com lective mahogany glow hit new levels at Picture: REX CITY DAD Sunday’s TV BAFTA awards.) But self-tan doesn’t all have to be about tangerine extravaganzas, as Pippa “Hello David.” I turn to face Caroline Davison. Middleton demonstrated at the royal wed- increase after the nuptials.) skin, hair removal, and a good all-over “Hello…” I begin. ding this spring, sporting a gorgeously sub- “Fake tan, done well, can be a fabulous moisturise before beginning application. “I’m surprised you’re buying your shirts here. tle glow which many pundits speculated confidence boost,” says Nichola Joss, self- “Wait for a couple of hours after you have Thought you’d be getting them handmade now. was down to a swift expertly-applied spray tanning expert at St. Tropez, and personal removed hair as skin is still sensitive.” I heard you’d been elevated to the peerage.” tan, rather than sunbathing sessions. (She spray tan artist to Kate Moss, Charlize “Not quite the peerage Caroline.” prompted a nationwide rush on self-tan- Theron, Gwyneth Paltrow and Scarlett APPLICATION “No but I’m sorry I didn’t drop a line to con- ning products in the process. Debenhams Johanson, among others. “It makes you “Tanner is likely to collect in areas where gratulate you.” reported a whopping 219 per cent sales look and feel healthier but without any of you have dry skin and hair. Apply extra “No. Not at all.” the sun damage. You look more toned. It’s moisturiser to elbows, knees, ears, and eye- “So, just an eye for a bargain then? The shirts also great for special occasions like wed- brows before you put on the product so it David.” Caroline indicates the three shirts for dings or the red carpet. Celebrities like it doesn’t absorb too much,” says Joss. After under £100 I’m holding. because it gives them an even skin tone that, says Joss, if you’re applying by hand, “Oh.” I look down at the shirts, their sartorial and subtle glow under lights and close-up use a self-tanning mitt (such as St. Tropez’s viability draining away. “No. Just browsing,” I photography.” polishing glove). “It makes the tan go on reply, casually replacing the shirts on the shelf. It helps that there’s now an incredible more evenly and deeper in to the skin.” She “I seem to have fewer lunch buddies these selection of products out there. Gone are adds: “Leave your hands, feet and face until days. Since the elevation. More time for, well, the days of gloopy smelly lotions. St. Tropez last using only the remaining tanner left browsing. If there’s not much happening.” (www.St-tropez.com) has emerged as the mar- on your mitt to apply. That way it’s more “Oh, you poor boy. Well, let’s have lunch togeth- ket leader for its bevy of seamless tanning subtle.” Finally, use a makeup-removing er.” products, removers and suncare. Then wipe to get excess tan from palms and “Lunch? Oh no. I didn’t mean…” there’s newbie Sun-believ- ankle skin. “Just to tidy it up,” says Joss. “Don’t worry. Not today David. Look I’ll get my able (www.sun-believable.com) PA to call yours. The next week or two.” which has been racking up PROLONGING THE BRONZED EFFECT Ten years ago, before I knew Emma – well, celebrity fans. Fake Bake “To extend the life of your tan, moisturise strictly speaking, not actually before I knew (www.fakebake.co.uk) is a firm every day. You can top it up with gradual Emma but certainly before we were a couple – Hollywood favourite. self-tanner too,” says Joss. I’d gone out with Caroline. For a few months. Meanwhile, Johnson’s She’d treated me a little shabbily at the end. Holiday Skin (www.johnsons- PICK THE RIGHT SHADE But I think I’d probably treated her a little beauty.co.uk) is still a high- “If you have fair skin, don’t go for some- shabbily throughout. Well, that was the thing street bargain staple. thing strong. Always pick something a really. It was never quite clear that it was a So, how to get that look only couple of shades darker than your nat- relationship. Until she ended it. without streaking or over- ural skin colour,” says Joss. “Yes. That’d be nice Caroline. Thank you.” doing the “Essex” effect? “And Emma?” AND, SHOULD THERE BE A DISASTER . . . “And Emma? Oh, she’ll be at school.” PREPARATION “There are two options. You can use Tan “I wasn’t inviting her for lunch David. How is “Skin is like a canvas. If Remover up to four hours after applying. she? And the lad?” you prepare it properly it Or, take a bath in St. Tropez Tan Detox Oil, “Ah. Good. Good Caroline. And you?” will take the tanner much which gently removes tanner from skin,” “All cylinders. All cylinders David. Well, see you better and stay on says Joss. “Always do fake tan two days soon.” Caroline turns. And is gone. I look down at the three shirts. Really not my colours. What Find out more: www.velformhairgrow.com longer,” says Joss, who before a special occasion so you can fix any advises full exfoliation of problems.” Voila! Instant summer skin. was I thinking? Call 02081238360

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Investec Ladies’ Day – Friday 3rd June 2011

Ladies take centre stage both on and off the track. Enter our Style on The Downs competition on the day for a chance to win over £15,000 worth of prizes. Why not also consider a hospitality package and enjoy a truly glamourous day out. Book now: 0844 579 3004 | epsomdowns.co.uk CITYA.M. 24 MAY 2011 THE NEW VW 27 SHARAN SEE TOMORROW’S NEWSPAPER French fare with added va va voom

sensuous and lusty, and swilling wine into Don’t be fooled by rustic Gallic the last velvety mouthfuls only enhanced the sensation. God it was good. interiors, this food is something The starter menu is divided into froid and chaud dishes, all simple things on the very special, says Timothy Barber face of it – snails in parsley butter, Basque charcuterie, and bone marrow. But chef Thierry Laborde, who had a Michelin star at L’Oranger a while back, has a few tricks up CHABROT BISTROT his sleeve. My chum’s duck liver paté with Right, the interior of Comté cheese wasn’t what you’d expect – D’AMIS Chabrot Bistrot rather than a smooth mousse paté, the d’Amis duck livers were sealed and finely chopped 9 Knightsbridge Green, SW1X7Q1, 020 with oodles of herbs, creating texture and 7225 2238, www.chabrot.co.uk depth. But it was the cheese that was the real surprise: a Yorkshire pudding made FOOD hhhhh with Comté-infused batter. Laborde’s nod SERVICE hhhII to his adopted country, taking our culinary ATMOSPHERE hhhhI first-born and sprinkling it with French Cost per person without wine: £45 magic. “Taste’s lovely with the paté,” said my friend, “but it’d be sensational with roast beef.” N a wall inside the entrance to Laborde’s speciality is a sharing dish of Chabrot Bistrot d’Amis hangs a large roast chicken stuffed with foie gras, and black and white photograph of a there’s a lamb shank dish for two – all very www.modernmilk.co.ukEnter Ogrizzled paysan emitting a gummy chummy, as is the relaxed bistrot atmos- Today grin as he pours red wine from a magnum phere. We decided to go separate ways bottle into a bowl. It’s an image as Gallic as though – my friend had a pale, tender slice the word “cliché”, but in this place it hap- of grilled veal, dressed in a musky coating pens to be more than just that. The old of sage and rosemary, which was fine if not codger is demonstrating the tradition of quite memorable. I had lamb cutlets that “chabrot”, in which, to make the most of were the best thing I’ve eaten in 2011. Win a your soup, you add red wine to the bowl Easily. A trio of small, trimmed chops came when you’re near to finishing it, using it to rolling in silky juices, their loose, rose-pink wash down every last, soupy residue. meat as sweet and giving as any I’ve tast- Malheureusement, they don’t bring you ed, with charcoal, garlic and herbs wash- a magnum to enact the ritual at Chabrot ing through in the aftertaste. The first cool mini Bistrot d’Amis, but a tiny complimentary mellow mouthful shut me up and I bare- jug of plonk is enough to indulge a bit of ly spoke until I’d cleared the plate. Froggy whimsy. The thing is, while the Accompanying, a tasty ratatouille of photos of peasants, the globe lights, the aubergine chunks and cherry tomatoes. huge mirrors, the bentwood chairs and the Onto desserts, which were no less fridge! Basque-pattern tablecloths at this restau- vibrant. I had a tart that was topped with rant might scream teary-eyed affectation of young strawberries, including a handful of a Café Rouge variety, it doesn’t feel over- wild ones. My friend had a ball of Trou du done. It’s actually a rather modest place – a Cru cheese with a vinaigrette dressed but- slim little restaurant off a tiny terhead lettuce served in a bowl next to it, a Knightsbridge side street (like Diagon Alley savoury combination that sparkled. overlooked by the One Hyde Park residen- The wine list is excellent, as you’d expect, tial behemoth), and the food, I have to tell and if our waiter was a little too enthusias- you, is really rather marvellous. tic at times – please, I’m fine to pour my There’s that soup, for instance. On my own water as and when I want – I’ll forgive visit, soup du jour was a white bean concoc- him. The food was just too good for that to tion with thin, semi-crisp pieces of bacon matter. floating in it, and streaks of olive oil dashed I’ll share this with you. A few days earlier across its surface. It was as gentle as a I had met with Pierre Koffmann, the chef spring morning, but shot through with who is le papa of French cooking in flavours that made one dream of cassoulet London. I asked him where he’d eaten in Carcassonne and Emmanuelle Beart recently that had impressed him. “Ah, prancing around in Manon des Sources – Chabrot – eet’s merveilleuse,” he responded every ex-schoolboy knows the bit. It was instantly. No arguments there. Chill out this Summer… …with the new,n sophisticated dairy drink for adults. FOOD & BOOZE NEWS Find out more, including where to buy and how to enter TIMOTHY BARBER our competition1 by visiting www.modernmilk.co.uk HAWKSMOOR TO OPEN IN EC2 a closed square off Bishopsgate, has had Spitalfields, offering its full menu, Big news for the City, this. Late last year a £400,000 facelift. Now operated by bespoke “cakes by consultation”, and Hawksmoor, the celebrated East End City stalwart Corney & Barrow, it’s open deliveries to Canary Warf. Enjoy. restaurant and bar that serves up some for breakfast, lunch and dinner – think www.hummingbirdbakery.com of the finest steak in London, opened a steaks ‘n’ burgers – and has a spirits and second branch to great acclaim in cocktails list as long as a commodities BRINDISA’S HAM SCHOOL Covent Garden. Well, Hawksmoor num- trader’s arm. No, not a place for practicing your ber three, Hawksmoor Guildhall, will be www.devonshireterrace.co.uk Shakespearean delivery. Brindisa, the opening in the City, on Basinghall Street, much-loved tapas restaurant and deli- in the autumn. Expect vast, perfectly E1 HUMMINGBIRD OPENS catessen in Borough Market, is offering cooked rib eyes, chips cooked in beef City cupcake lovers rejoice! to tutor people in the ways of jamon. dripping and the best Bloody Marys – All those days of being left You can learn your Extremdura from plus a walk-in wine room – to welcome in the cold, as Primrose your Jabugo, and find out in the first hungry City folk in October. Hill and West London about slow curing and www.facebook.com/hawksmoor become cupcake cen- Iberico pigs, at ses- tral, are over. Last week sions that take place DEVONSHIRE TERRACE REVAMP The Hummingbird Bakery twice a month over Devonshire Terrace, the restaurant and opened a brand new store the summer. Visit: 1. Terms and conditions apply bar that opened a couple of years ago in on Frying Pan Alley in www.brindisa.com 28 from 1 to 9 to solve Sudoku thispuzzle. tricky numbers the all contains block 3x3 each and column row, each each that so cell empty each 9in 1to from numbers the Place  QUICK CROSSWORD SATELLITE & CABLE TERRESTRIAL ISTS MI DRAWN COCOA LAST ISSUE’S ASKS SERVE A E E FINEST I SOLUTIONS K Lifestyle |TV&Games BBC1 12am event. 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GOLF’S STAR NAMES TURN OUT FOR SEVE SPORT | IN BRIEF

Wentzel latest to sign for Wasps Morgan: IPL RUGBY UNION: Wasps have taken their signings for next season into double fig- ures by snapping up former Leeds Carnegie captain Marco Wentzel. Ex- South Africa international Wentzel, whose switch follows Leeds’s relegation, set me up for has vowed to return Wasps to “where they belong at the top of English and European rugby”. Tondo dies after freak accident CYCLING: Spanish rider Xavier Tondo Test summer has died, aged 32, after a freak accident at a ski resort near Granada. Tondo won the Vuelta a Castilla y Leon in April. “He ▲ CRICKET was an incredible person who loved this than plugging away in Division Two sport more than anyone,” said Tour de BY JAMES GOLDMAN of the County Championship for France champion Alberto Contador. ENGLAND batsman Eoin Morgan Middlesex. insists he made the correct decision to “The learning curve I went through Hamilton relishing Monaco test gamble with his Test future by fulfill- in IPL last year, the pressure I was put Formula One: Lewis Hamilton believes ing his Indian Premier League com- under, the fact of having to produce McLaren can increase the pressure on mitments. your skills time after time in massive Red Bull at next weekend’s Monaco The talented Irishman secured his situations, it helps my game a lot Grand Prix. “We have something good inclusion for the first Test against and I get a lot of confidence coming for Monaco,” said Hamilton, who Sri Lanka, which starts on from it,” said Morgan (left). is currently 41 points behind champi- Thursday, after scoring 193 National selector Geoff onship leader Sebastian Vettel. against the tourists for the Lions Miller confirmed on Sunday in last week’s warm-up match. he would be seeking words Ravi Bopara, who shunned the with Morgan in order to clarify IPL riches in order to catch the where his priorities lie, but the Results selectors’ attention by piling up 24-year-old was unequivocal in the runs for Essex, was his desire to represent KXiifj#GXi`j#=iXeZ\ ÇD\eËjJ`e^c\j favourite to inherit the above anything else. Ie[(18M\`Z :if YkG:l\mXj Lil +$--$*-$)*$(i\k# )/  retired Paul “My priorities are E;Xmp[\ebf Ilj Yk;>i\d\cdXpi >\i .$- .$) -$(-$*# (' D=`j_ LJ8 YkID\ccf 9iX -$)-$. (($(* -$)-$+# ).  Collingwood’s No6 quite clear – Test D9X^_[Xk`j :pg Yk=>`c Gfi .$- .$+ -$)-$)#CDXp\i spot. match cricket comes 8i^ Yk;9ifne >\i *$-.$- .$, -$)-$)#8IXdfj$M`efcXj But Morgan’s first, always has JgX YkADXik` JgX -$*-$. ,$. +$--$(-$*#J9fc\cc` @kX  superbly timed done,” said Morgan. Yk=;XeZ\m`Z :Xe -$(-$*-$. ,$. -$)#D9\ii\i >\i Yk )- DIXfe`Z :Xe -$++$--$*-$+#KBXdb\ >\i YkF innings turned the “Part of my progres- IfZ_lj 9\c -$. ,$. -$*-$*-$)# (, MKif`Zb` J\i YkA tide in his favour and sion and sort of learn- RYDER CUP captain Jose Maria Olazabal (above), eight-times European No1 Colin I\`jk\i >\i -$+-$*-$*#:9\icfZh 8i^ Yk9Kfd`Z 8lj .$, he believes his needs ing curve is the IPL, but Montgomerie and US Open champion Graeme McDowell were among the competitors in -$+-$)#8=XccX :fc YkGJkXiXZ\ @kX .$- .$) -$(-$(#J were better served by Test match cricket has yesterday’s ‘Ole Seve’ pro-am at Wentworth. All funds raised from the event are in aid of ;XiZ`j 9\c Yk )) DCcf[iX =iX -$. ,$. -$*-$*-$*#G G\kqjZ_e\i >\i YkDQm\i\m >\i .$- .$* -$'-$+# 0 > appearing in the IPL rather always come first.” the Seve Ballesteros Foundation and Cancer Research UK. Picture: GETTY Dfe]`cj =iX Yk9G_Xl >\i +$--$*.$,-$'#KJZ_ffi\c E\[  YkD>feqXc\q 8i^ .$- .$, -$*-$*#@8e[i\\m Ilj Yk= J\iiX =iX -$+-$(-$*# )0 AK`gjXi\m`Z J\i Yk9;XYlc 8i^  .$- .$( -$(-$'# * I=\[\i\i Jn` Yk=Cfg\q JgX -$*-$+ .$- .$* #JIfY\ik =iX Yk - K9\i[pZ_ :q\ *$-*$--$)-$) 0$.#D@c_Xe Kli YkK?XXj >\i -$++$-.$- .$( -$+#D Quins duo Monye and Marler named in England squad Blblj_b`e BXq Yk;9iXe[j >\i -$)-$+-$+# () DPflq_ep Ilj Yk>Jf\[X Age .$,-$)-$+# (* I>Xjhl\k =iX YkI Jk\gXe\b :q\ .$,-$*-$'#D>iXefcc\ij$Glafc JgX Yk8 9f^fdfcfmAi% LJ8 -$**$-.$- /$- -$)# )* K9\cclZZ`

▲ 9iX Yk8>fclY\m BXq -$+-$+-$. +$. .$- .$, # ), A RUGBY UNION Exeter flanker Tom Johnson and bring some experience to the squad, England Saxons next month.” DXik`e;\cGfkif 8i^ Yk@BXicfm`Z :if -$. .$0 -$*.$,-$+# Gloucester centre Henry Trinder are which is being coached by England England team manager Martin M?Xe\jZl Ifd Yk9GX`i\ =iX .$,+$--$(.$- .$+ # ) E ENGLAND have handed a swathe of among 13 uncapped players in the Saxons boss Stuart Lancaster. Johnson will shortly name a 50-man ;afbfm`Z J\i YkK;\9Xbb\i E\[ -$)-$(-$*% youngsters the chance to make last- 24-man squad for the clash at Lancaster said: “It is a great oppor- squad for World Cup training ahead ditch claims for a World Cup place in Twickenham. tunity for all the players who are of three warm-up Tests in August, KF;8PËJ;@8IP Sunday’s match against the Saracens-bound fly-half Charlie looking to force their way into while the Saxons have matches :Xic`e^EXk`fej:lg Barbarians. Hodgson, Quins wing Ugo Monye, Martin Johnson’s plans for the World against the USA on 4 June and Tonga I\gf]@i\cXe[mEfik_\ie@i\cXe[ .%+, %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% Harlequins prop Joe Marler, 20, Bath back Matt Banahan and Cup, and those who will go on to on 11 June in the Churchill Cup Newcastle front-row Kieran Brookes, Gloucester’s James Simpson-Daniel defend the Churchill Cup with the before the final on 18 June. email [email protected] 30 Sport CITYA.M. 24 MAY 2011 £47.2m: Cost of Roman’s itchy trigger finger LIPPI FITS BLUES Roman Abramovich fired his fifth manager in eight years on Sunday. It’s a ruthless way of treating well Ex-Chelsea boss believes Italian World Cup-winner has credentials to rival qualified managers, not to an men- favourites Guus Hiddink and Marco van Basten for west London role tion extremely expensive one. CLAUDIO RANIERI ▲ League before, he has got to the final really need to do something special to Reign: June 2003 – May 2004 EXCLUSIVE three times, managed the national keep your place, otherwise there are a League best: Second (2004) BY FRANK DALLERES team and won the World Cup. If you number of managers who are avail- Euro best: Semi-final (2004) look at his CV it’s difficult to argue able. So having a normal season FORMER Chelsea manager Gianluca that he might not be one of the best sometimes is not enough to keep Biggest purchase £17m Damien Duff Vialli believes World Cup-winning ex- candidates.” your job – but managers know that.” Pay-off: £6m Italy coach Marcello Lippi is a credible Ancelotti’s sacking has earned the One intriguing possibility raised in rival to bookmakers’ favourites Guus Italian a measure of sympathy, com- recent weeks is that Hiddink, 64, JOSE MOURINHO Hiddink and Marco van Basten for ing as it did just 12 months after he could occupy a director of football the Stamford Bridge hot-seat. led the club to the Premier League role at Chelsea with Van Basten, 46, as Reign: June 2004 – September 2007 Dutch pair Hiddink and Van Basten and FA Cup Double. head coach. League best: First (2005, 2006) are being tipped as the most likely Vialli has nothing but praise for It would be considered a risk to Euro best: Semi-final (2005, 2007) men – perhaps even working in tan- the former AC Milan coach, whom he adopt a Continental management dem – to replace Carlo Ancelotti, who played alongside for Italy, and expects model that has had mixed results in Biggest purchase: £32m Andrei Shevchenko was sacked on Sunday shortly after him to bounce back quickly. England, but Vialli believes that, Pay-off: £18m the final match of a disappointing But he also believes the apparent when implemented correctly, it is the campaign. ruthlessness of Blues owner Roman best one. AVRAM GRANT: Vialli, who won four trophies in Abramovich would not have come as “On the one hand it’s nice to have a two years as Blues boss before his dis- a surprise to Ancelotti, who would manager who is in control of every- Reign: September 2008 – May 2008 missal in September 2000, rates both have known that anything other than thing – he can choose the players, the League best: Second (2008) Van Basten, a personal friend of his, success would not be tolerated. tactics – but I think it becomes a bit Euro best: Runner-up (2008) and Hiddink, who is currently coach- “First of all Ancelotti is a very spe- too much,” he said. Biggest purchase: £15m Nicolas Anelka ing Turkey, extremely highly. cial manager and a very special “I like to think if you had a combi- However he is also a huge admirer human being, and I am sure he will nation of someone selling and sign- Pay-off: £5.2m of Lippi, who boasts one of the most find great ing the players so the manager can impressive pedigrees in world foot- places concentrate on coaching the team, I LUIZ FELIPE SCOLARI: ball but has been out of work since where he think that is probably the best possi- Reign: July 2008 – February 2009 leaving the Italy job last year and has will man- ble combination.” scarcely been mentioned in relation age suc- Vialli, 46, now works as a pundit on League best: N/A to Chelsea. cessfully Italian television and has devoted a Euro best: N/A “I think there are a number of in the significant amount of the last three Biggest transfer fee: £16m Jose Bosingwa managers out there capable of taking future,” years helping to devise Lords of them to the next level or winning the Vialli Football, a forthcoming video game Pay-off: £12m things the club wants to win,” Vialli added. that promises to immerse players (right) told City A.M. “At cer- even deeper into the world of man- GUUS HIDDINK: “Normally there are two options. tain clubs agement. Reign: February 2009 – May 2009 You either go for someone with a you He himself has taken a proven track record, and Guus break from the real League best: Second (2009) Hiddink, Marcello Lippi and thing since leaving Euro best: Semi-final (2009) other managers, like Ancelotti Watford in 2002, but Biggest transfer fee: N/A before, have that. has not ruled out a Pay-off: N/A “Or you do what Barcelona comeback. “I would- did with Pep Guardiola n’t say I’m on stand- three years ago: they took a by, but I’m a football CARLO ANCELOTTI gamble and took some- guy so if in the Reign: June 2009 – May 2011 one who was basically future something League best: First (2010) unknown as a manager came up I would – and the rest is histo- consider it,” he Euro best: Quarter-final (2011) ry. adds. “But I’m Biggest transfer fee: £50m Fernando Torres “Lippi has the perfectly happy Pay-off: £6m experience. He has at where I am won the right now in Champions my life.”

Well I Heather: Brit girl wins in Paris Murray aware of

▲ Prodon’s threat TENNIS good players coming through,” said Roland Garros 12 months ago when BY JAMES GOLDMAN Watson. “There’s Laura [Robson] com- she became the first Italian woman to ing up – and on the boys’ side there’s win a grand slam title, began her title BRITISH No1 Andy Murray will take TEENAGER Heather Watson scored a George Morgan and Olly Golding. I defence with a 6-2, 6-0 hammering of nothing for granted when he meets landmark victory for British tennis think we’re doing really well and the American Melanie Oudin. Frenchman Eric Prodon in the first yesterday by becoming the first we’re starting to see that hard work.” Elsehwere, world No2 Novak round of the French Open today. woman from these shores to win a Watson won’t, however, be joined Djokovic extended his winning streak Prodon, born in Paris and ranked match at Roland Garros for 17 years. by British No2 Anne Keothavong who to 40 matches after a 6-2, 6-1, 6-3 win 124th in the world, has spent almost Watson, who turned 19 last week, suffered a 3-6 7-6 (7-5) 6-4 defeat over Dutchman Thiemo de Bakker. his entire career at Futures and is now projected to break the top 100 against Vesna Dolonts. “It’s been an amazing streak Challenger level, with his only win on after the tournament following her 7- Keothavong, 27, recovered to 3-3 in which, if you asked me in the begin- the main ATP Tour coming against 6, 6-1 victory over Stephanie Foretz the decider but, hampered by cramp, ning of the year ‘would I expect that?’ Ruben Ramirez Hidalgo eight years Gacon. finally lost out after the 201-minute No, I didn’t expect that, to go this far,” ago. Having saved four set points before battle. said Djokovic. But Murray said: “He has a lot of taking the opening set on the “A loss is a loss and it’s a grand Third seed Roger Federer swept experience and plays most of his ten- tiebreak, 8-6, she then romped slam,” said Keothavong. “It’s definite- past Spain’s Feliciano Lopez 6-3, 6-4, 7- nis on clay so he will be dangerous. through the second and will now ly a match I felt I could have won but 6 but eighth seed Tomas Berdych, I’m sure the crowd will shout for him take on the 16th seed Kaia Kanepi of when you get a little older, have a bit who beat Andy Murray en route to but I feel fresh right now and I’m Estonia. more experience, you just learn to the semi-final last year, fell victim to looking forward to this tournament Watson is the first British woman to win at “I don’t really know much about handle it a bit better.” French qualifier Stephane Robert more than ever.” Roland Garros since 1994 Pic: GETTY the records, but we’ve got a lot of Francesca Schiavone, who lit up who won 3-6, 3-6, 6-2, 6-2, 9-7. CITYA.M. 24 MAY 2011 Sport 31 BILL, SAYS VIALLI

Hiddink open to a return to club management Roma captain Totti wants Ancelotti at but there will be no homecoming for Mourinho the Stadio Olimpico Picture: Getty

▲ FOOTBALL refuse any approach for Hiddink from Chelsea, Tozar added: “Last month, Kalou: We BY JAMES GOLDMAN our vice-president was asked and he said we had long-term plans with Mr CHELSEA have been given hope of lur- Hiddink. If there are new issues, ing Guus Hiddink back to Stamford Hiddink will talk about this.” loved Carlo Bridge on a full-time basis after the Van Nieuwenhuizen, meanwhile, Dutchman’s agent suggested the 64- insisted he knew nothing of reports year-old wouldn’t be averse to return- Hiddink had recommended Marco ▲ FOOTBALL ing to club management. van Basten to Roman Abramovich as BY FRANK DALLERES Hiddink, who has one year remain- an alternative to himself, but con- ing on his contract with the Turkish firmed the two Dutchmen were in FORWARD Salomon Kalou has Football Association, enjoyed a suc- touch. leapt to the defence of sacked cessful three-month spell in west “They meet each other every now Chelsea manager Carlo Ancelotti, London two years ago, securing an FA and then,” he said, while Van Basten’s insisting the players all loved the Cup win, second place in the Premier representative, Perry van Overeem, Italian. League and would have reached the claimed there had been no contact Ancelotti was sacked on Sunday Champions League final at between the former AC Milan striker shortly after losing 1-0 at Everton Barcelona’s expense were it not for and Chelsea. – a result that capped a disap- several highly contentious refereeing Jose Mourinho, the most successful pointing season in which the club decisions. manager in the club’s history, last failed to win a trophy. He hasn’t managed a club on a per- night ruled himself out of a return to But Kalou, the first Blues star to manent basis since 2006 leading to Stamford Bridge by pledging his speak since the dismissal, praised suggestions he could only be tempted immediate future to Real Madrid. the former AC Milan coach and by a return to Chelsea in a Director of The Portuguese won back-to-back backed him to flourish elsewhere. Football capacity, but there appears to Premier League titles in his first two “The players respect him and have been a softening of that stance. seasons at Stamford Bridge before his love him for what he did for the “I don’t know that you can say that relationship with Abramovich deteri- club,” he said. “We wish for Carlo [he would not consider a club job],” orated beyond repair, culminating in to have a good time wherever he’s said his agent, Cees van his sudden and surprise sacking. going. We all know that he’s a Nieuwenhuizen. “He is focusing on Mourinho has repeatedly aired his good manager and he’s going to his job and he likes what he is doing. desire to return to the Premier bounce back.” As long as he is in the race for the League at some stage in his career, Ancelotti has spoken of his love European Championship with but for now, at least, he appears con- for English football, and has Turkey, he would continue to focus tent in the Spanish capital despite a encouraged the prospect of man- on that. Once that is finished he will tumultuous first season at the aging West Ham, despite their rel- start thinking about his future.” Bernabeu. egation to the Championship, Defeat to Belgium next week would “We will return on 11 July with the while he still has no shortage of leave Turkey with only a remote shot same passion and with the same admirers in Italy. at qualification for Euro 2012 at motivation as always to continue try- Adriano Galliani, vice-president which point Hiddink might find it ing to dignify the prestige and the of Ancelotti’s former club Milan, easier to renege on his contractual incomparable history of Real Madrid,” said: “I have spoken to Carlo. He obligations. he said. will come to see me in a couple of “At this stage, we will leave every- Spurs manager, Harry Redknapp, weeks. He is a great coach and I’m thing to Mr Hiddink and if he sees the an outside candidate to replace Carlo confident he will soon find a need to speak about this issue, he will Ancelotti also claimed last night he great coaching post he deserves.” do this personally,” said Turkey’s sen- would be unwilling to cross the He continues to be linked with ior national team communications London divide. Roma, who are seeking a new Lippi (left has been tipped as a replacement for manager Turker Tozar. “We have a He said: “Well I have got a great job manager, while their captain Ancelotti by ex-Chelsea boss Vialli, while press conference on 27 May. If he at Tottenham, things are going well Francesco Totti said: “We hope Hiddink (top) could be open to a return, but wishes comment on these rumours for me. I have had a couple of great that Ancelotti is one of our candi- Mourinho’s staying in Madrid. Pictures: GETTY or leaks, he will do it.” years it couldn’t have gone better for dates for Roma’s bench.” Pressed on whether they would me there. There’s been no contact.” Wilshere and Carroll handed Birmingham keep faith in England Under-21 reprieve McLeish, for now at least

▲ have continued to back us magnifi- FOOTBALL cently, have been let down.

▲ BY FRANK DALLERES “The club can confirm that manag- FOOTBALL tion as a “massive risk” given the enjoyment at being involved with the er Alex McLeish’s job is safe but that BY JAMES GOLDMAN amount of football – 3,819 minutes to under-21 squad, and while I am disap- BIRMINGHAM manager Alex McLeish the board will expect him to lead the be precise – he has played this season. pointed not to have him with us for has been told that he can keep his job side back to the Premier League in ARSENAL’S Jack Wilshere and Wilshere himself always main- the finals I’ve accepted the situation.” despite taking the club down for a the 2011/12 season.” Liverpool’s Andy Carroll have been tained he was keen to play, but the Meanwhile, Fulham’s Bobby second time – but only if he brings McLeish took charge at St Andrews omitted from Stuart Pearce’s England player has apparently been convinced Zamora was named in an England them straight back up again. in November and failed to prevent Under-21 squad for next month’s by Wenger’s arguments: “I spoke to squad for the first time since August The Blues were relegated on their slide into the Championship but European Championship finals in Jack last week and he explained that after Fabio Capello announced his Sunday after losing their final the former Rangers boss immediately Denmark. while he told me in March that he party for next month’s Euro 2012 Premier League fixture at Tottenham, remedied the situation by achieving Pearce had previously outlined his wanted to be part of the squad, he qualifier against Switzerland. plunging McLeish’s future into doubt. promotion the following season. intention to select the strongest possi- now feels he is not in the best condi- With Andy Carroll injured and But the Scot, who led them to Pannu pointedly added that relega- ble squad at his disposal and include tion to take part in the finals,” said Wayne Rooney suspended, Zamora Wembley glory in the Carling Cup tion had occurred “despite [Hong players, such as Wilshere and Carroll, Pearce. “That is based on the number has been selected in a four-man strike final less than three months ago, has Kong-based owner] Carson Yeung’s who have already graduated to the of games he has played for Arsenal force that also includes Darren Bent, been granted a reprieve by chairman promised injection of £40m in funds” senior squad. this season, sports science data which Jermain Defoe and Peter Crouch. Peter Pannu. and said the board were discussing The Arsenal midfielder’s inclusion Jack was presented with last week There was no place for West Ham In a statement released yesterday steps to ensure “a speedy return to in particular has become con- and concerns he has for his fitness goalkeeper Robert Green, who had Pannu said: “The board regrets yester- the top flight”. tentious, with Arsenal manager looking ahead to next season. hinted he did not wish to be involved day’s result and subsequent relega- Birmingham’s 2-1 defeat at White Arsene Wenger describing his selec- “Jack has always expressed his on this occasion. tion and feels that supporters, who Hart Lane meant they finished 18th. Institutional | Private | Professional Traders Futures Online research Comprehensive 450+ Commodities on Agricultural Pr Sovereign, Government AwardForex winning Base Metals, Pr ETFs and Corporate Bonds 160+ currency pairs, Spot and Forwards Currencies, Short-T 450+ Purchase or deposit to your Saxo account &ETCs Real-time monitoring of positions Trade across 23 global Exchanges Live pricing 160+ currency Meats, Softs and Stock Indices to trade margined products* Up to 95% value as collateral on 40 pairs, Spot and Trade over FX Forwards 1,000+ ETFs ecious Metals, Bonds, Options Excellent liquidity Trade across Tight spreads 15 major & leverage up erm Inter Exchanges Access to 11,000 Stocks to 200 times CFDs 7,000+ CFDs, Trade from Trade 450+ Futures oducts, , Trade across 16 Indices, 15 major flat fee £8 Stocks est Rates, Extensive range available 23 global 700+ ETFs, 20 Exchanges Traded and Live charts and issuer information Exchanges Commodities Direct settled like

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