Issue 1,157 Thursday 17 June 2010

BUSINESS WITH PERSONALITY FREE

www.cityam.com

OSBORNE: BANK PAYS $20BN BP AXES ITS

DIVIDEND
IS KING OF CITY INTO FUND
Bank of England FSA will be Osborne warns Commission to P6
to get sweeping abolished by 2012, banks to expect a investigate break-
powers under but Hector Sants levy in Budget up of investment
new regime moves to Bank next Tuesday and retail banking

MERVYN King (l) was handed sweeping new powers by chancellor George Osborne last night

BY DAVID CROW
POLITICAL EDITOR
GEORGE Osborne unveiled sweeping changes
to the way the City is regulated last night,
scrapping the Financial Services Authority
and giving a beefed-up Bank of England huge
powers.
Bank governor Mervyn King is set to
become one of most influential central
bankers in the world under the shake-up,
with responsibility for maintaining the over-
all stability of the financial system as well as
setting interest rates.
Despite considerable opposition from his
Liberal Democrat coalition partners, the
chancellor used his first Mansion House
speech to confirm the government will
abolish the tripartite system.
The Financial Services Authority will
cease to exist in its current form, Osborne
said, explaining the watchdog will be
wound down over the next two years .
Last night, King fired a warning shot to
the City, saying his role in ensuring financial
stability would be to turn down the music
when the dancing gets a little too wild.
A new prudential regulator which will
operate as a subsidiary of the Bank of
England will replace the FSA when it is
fully abolished in 2012.
In an astonishing U-turn, Hector Sants has
been persuaded to stay on as chief executive
of the FSA, and will then assume the top job
at its replacement. He will also become a
deputy governor of the Bank of England.
As late as last week, Sants was telling
friends he would begin six months of gar-
dening leave in July and said he was looking
forward to spending more time with his
family. Last night, an aide to the chancellor
confirmed Sants had only been convinced to
stick with the job within the last few days.
When Osborne announced Sants was stay-
ing on, his Mansion House audience
responded with the biggest cheer of the
night.
Treasury officials said FSA chairman Lord
Turner would continue in the interim,
although he is not expected to move to the
prudential regulator with Sants. Last night,
he insisted he was happy with the changes.
A new Consumer and Markets Authority
will also be created, tasked with the protec-
tion of consumers and the day-to-day polic-
ing of financial firms, alongside an
economic crime agency.
Meanwhile, the chancellor confirmed he
will hit the banks with a new levy in his
emergency Budget on 22 June. There are
real issues of fairness. That is why we will
introduce a bank levy and demand further
restraint on pay and bonuses, he said.
And Osborne announced the launch of an
independent commission into the future of
banking, tasked with deciding whether the
government should pursue a full-scale sepa-
ration of investment and retail banking.
Former OFT chairman Sir John Vickers
will lead the commission, along with former
Barclays chief Martin Taylor, ex-Ofgas boss
Claire Spottiswoode, former co-head of
investment banking at JP Morgan Bill
Winters and columnist Martin Wolf.
In a fillip for the chancellor, King threw
his weight behind Osbornes plans for early
and quick spending cuts, arguing the reduc-
tion of a very large structural deficit could
not be postponed indefinitely.
And in a sign of how the Bank will go
about tightening monetary policy, the gover-
nor indicated he would hike interest rates
before selling off the gilts bought through
the programme of quantitative easing.
The monetary policy committee will not
hesitate to begin to withdraw the current
degree of stimulus when we judge that is
necessary. That is most likely to be through a
rise in the Bank rate, with asset sales being
conducted later, he said. MORE: P3, P4, P5
Certified Distribution
3/05/10 - 30/05/10 is 106,097

FTSE 100 s 5,237.92 +20.1 DOW s 10,409.46 +4.69 NASDAQ s 2,305.93 +0.05 /$ 1.47 -0.01 / 1.20 unc /$ 1.23 unc
 2 News
Why Mervyn King is the real winner
EDITORS LETTER
ALLISTER HEATH
SO there you are. The Bank of England
is now in charge; the FSA is being dis-
banded and its name junked; and its
staff are being reallocated to the Bank
and other new agencies (and many
will physically be moving back to the
Square Mile from Canary Wharf).
Hector Sants, the FSAs chief executive,
will stay on after all to help the transi-
tion; he will become a deputy gover-
nor of the Bank, in charge of a new
subsidiary called the Prudential
Regulatory Authority, reporting to the
Governor. Gordon Browns tripartite
system of bank regulation is being
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Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
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WHAT THE OTHER PAPERS SAY THIS MORNING
CHVEZ ATTACKS ECONOMIC CRITICS
Hugo Chvez has strongly defended
his economic record as president of
Venezuela after a turbulent year in
which the country has been rocked
by recession and 30 per cent infla-
tion. Chvez used an interview to
assail his critics in the US and Europe,
saying the performance of the
Venezuelan economy contrasted
favourably with its performance
under previous regimes.
INDIA HOPES MONSOON WILL TAME
INFLATION
Indias Congress-led government is
counting on bountiful monsoon
rains to boost agricultural production
and tame inflation that hit 10.2 per
cent in May, driven partly by a 16.5
per cent rise in food prices. Rains hit
Indias southern coast on 31 May and
progressed into the cane, oilseed and
rice growing areas of the south-west.
swept away, not a moment too soon.
Mervyn King has officially emerged
as the credit crunchs great and per-
haps only winner, even though his
policy of keeping interest rates exces-
sively low was the single most impor-
tant domestic driver of the bubble
(something which for some reason,
unlike in the US, nobody wants to talk
about in this country). Of course, the
real culprit was Gordon Brown and Ed
Balls, who forced King to follow a nar-
row and deeply destructive mandate,
focusing exclusively on targeting the
consumer price index and largely
ignoring asset prices, the soaring
money supply and the rest. Many
monetarist, Austrian and other non-
mainstream economists warned for
years that a bubble was under way,
only to be dismissed.
All that is now water under the
bridge: King has been given sweeping
new powers which he will gradually
begin to exercise over the next two
years. It is an astonishing victory for
the Governor, who has reinvented
OECD states
losing power
WORLD ECONOMY
BY JESSICA MEAD
THIS is likely to be the last year in
which developed countries account
for more than half of global output,
according to the Organisation for
Economic Cooperation and
Developments (OECD) annual
Perspectives on Global Development
report, published yesterday.
The Paris-based organisation, which
represents 31 developed countries,
said that its members would account
for 51 per cent of world economic out-
put this year. It predicts that this
share will fall to 43 per cent by 2030.
The global economy has under-
gone a structural transformation in
the 20 years since 1990 that has shift-
ed the worlds economic centre of
gravity away from the OECD and
towards the emerging economies,
GOOGLE CASTS SHADOW OVER NEW
MEDIA GROUPS
Google is developing technology that
could position it to compete with a
new breed of digital media compa-
nies that are generating story ideas
for the internet by mining online
search data for under-covered topics.
Google obtained a patent this year for
a system that would help it identify
inadequate content on the internet,
based on comparisons of what people
search for and what they find.
UK TAX TO COST US BANKS $2BN
US banks will foot a total bill of about
$2bn (1.4bn) in their second quarter
results to pay for the UK tax on
bankers bonuses -- a charge that
could significantly reduce earnings at
financial groups such as Citigroup,
JPMorgan Chase and Bank of
America. The amounts to be paid by
US banks, with Goldman Sachs alone
in line for a $600m-plus charge, will
contribute to a windfall of 2.5bn
from the levy, larger than expected.
himself as a critic of the City and
many banking practices. He may yet
also get his way on imposing a variant
of Glass-Steagall on the UK: the new
banking reform committee set up by
Osborne contains at least one support-
er of splitting up universal banks. Let
us hope the five-strong group pro-
duces a genuinely unbiased and fair
report that truly seeks to build a
stronger, more resilient City, rather
than merely pandering to the mob.
In his own speech last night, King
suggests that his new system of
macro-prudential regulation within
this regulatory infrastructure would
have seen a progressive tightening in
capital standards that would have
reined in the near-tripling of UK bank
balance sheets between 2002-2007.
Perhaps; but of course many econo-
mists warned that there was a bubble
last time yet the authorities either did-
nt agree or never really tried to punc-
ture it. More relevant to the markets
in the very short-term, King implied
that monetary tightening in the UK,
the report said. It added: Economic
growth has been most visible in Asia,
driven by the strong performance of
China and India, but it has not been
confined to that continent.
Developing countries already
accounted for the lions share of glob-
al growth prior to the crisis but as it
unfolded, global growth has relied
primarily on the emerging and devel-
oping economies, with nearly half
coming from China alone.
IMF chief economist Olivier
Blanchard yesterday argued it was in
Chinas interest to revalue the yuan.
IMF chief economist
Olivier Blanchard said
it was in Chinas own
interests to revalue
its currency
JAPANS TOP BOSSES PREPARE TO GO
PUBLIC ABOUT PAY
Japans most senior business execu-
tives are bracing themselves for
unprecedented public scrutiny -- and
possibly public anger -- over the size
of their pay packets. Over the next
fortnight companies will declare, for
the first time, who among their man-
agement earns more than 100m yen
(736,000) per year.
HISTORIC THREADMAKER COATS TO
RETURN TO STOCKMARKET
One of the most historic names in the
British clothing industry is planning
a return to the stockmarket after
nearly a decade as an unquoted com-
pany. Coats, the worlds biggest
maker of thread and sewing supplies,
owes its creation to three 17th centu-
ry entrepreneurs -- and its early suc-
cess to Napoleon. It is being spun out
of Guinness Peat Group.
when it eventually starts, will take
place via higher interest rates, not
quantitative tightening (the selling-off
of previously purchased gilts).
Browns regulatory system and
monetary policy were unmitigated
disasters. It is vital the coalition gets
these reforms right. Osborne is right
to scrap the FSA; but I remain uncon-
vinced about the rest. We shall see.
CRISIS MOUNTS AT BP
Thats that, then. BP now unofficial-
ly a subsidiary of Barack Obama, Inc
has bowed to the new reality and sus-
pended its dividend for the remainder
of the year. Yet that wasnt the biggest
news of the night: it paled in compari-
son with the deal on the $20bn escrow
fund; the announcement by BP that it
would be selling $10bn in assets to
raise cash; and perhaps most impor-
tant that the fund didnt imply a lia-
bility cap. Fines and penalties are not
included. This is not even the end of
the beginning for BP.
allister.heath@cityam.com
Gibraltars impending corporation tax rate of 10 per cent is attractive
Burren fund raises $500m
HEDGE FUNDS
BY OLIVER SHAH
GIBRALTAR, the low-tax British terri-
tory, has staged a coup by attracting
the launch of a $500m (340m) hedge
fund run by ex-BNP Paribas event-
driven specialist Andrew McGrath.
In a sign of the growing preference
for low-tax jurisdictions among alter-
native investment managers,
McGrath will domicile the Burren
Global Arbitrage Fund in the former
colony rather than the UK.
NORTHUMBRIAN RECEIVES 1.7BN
TAKEOVER APPROACH
Northumbrian Water traded at a 52-
week high yesterday amid talk
Ontario Teachers Pension Plan had
finally made a 1.7bn takeover
approach for the water company.
Traders said Ontario Teachers is work-
ing with another infrastructure fund
on the transaction. Boutique advisory
firm Lexicon is thought to be advising
the consortium on the takeover while
Deutsche Bank is said to be working
with Northumbrian Water.
PRUDENTIAL BOSSES SHUN REBEL
SHAREHOLDER ROBIN GEFFEN
Robin Geffen, the fund manager who
led a shareholder revolt against
Prudentials $35.5bn (25bn) bid for
AIGs Asian business, has claimed he
is being frozen out of talks with the
companys management following
the collapse of the deal.
CITYA.M. 17 JUNE 2010
NEWS | IN BRIEF
Spanish borrowing costs soar
Madrids cost of borrowing has hit a
new high amid renewed fears over the
state of its public finances. Investors are
demanding a yield of 4.9 per cent on 10-
year bonds, the steepest level since July
2008 and the widest spread over
German bunds since the start of the
euro in 1999. Analysts said the fragility
of the countrys banking system, which
is struggling to finance itself, could lead
to Spain receiving a European bailout.
P16: EUROZONE CRISIS
S&P circuit breakers triggered
The Washington Post activated the S&P
500 circuit breakers for the first time
yesterday after its shares doubled in
price within the space of one second.
The safety catches, brought in after last
months flash crash, freeze a stock if its
price rises or falls by 10 per cent inside a
period of five minutes. Washington Post
paper was trading at $460 yesterday
afternoon when two orders were exe-
cuted at $919.2, followed by another at
$929.2. A spokesperson for the New
York Stock Exchange Euronext platform
confirmed the three trades were erro-
neous and said it was investigating.
Picture: GETTY
Last month, Gibraltar finance cen-
tre director James Tipping told City
A.M. the territory wanted to replicate
the growth of its insurance sector,
which has multiplied fivefold to 100
companies over the past decade, with
hedge funds. There is an opportuni-
ty for asset management firms to con-
sider Gibraltar because of the overall
package, he said, citing lifestyle as
well as low tax as attractions.
The Burren fund is expected to
trade securities based on opportuni-
ties thrown up by global events.
RUSSIA REVIVES ITS PROPOSAL FOR
FINANCIAL HUB
The Kremlin is reviving the idea,
shelved during the countrys deep
recession, of turning Moscow into an
international financial centre, not
only to handle the deals of former
Soviet countries but also to take on
better-known hubs such as Dubai and
Frankfurt. Probably we can do better
than Dubai, said Arkady Dvorkovich,
president Dmitry Medvedevs aide.
US BLACKLISTS IRANIAN COMPANIES
The Obama administration placed on
a US financial blacklist more than a
dozen Iranian companies and senior
Iranian officials in a bid to augment
United Nations economic sanctions,
approved last week, aimed at curbing
Tehrans nuclear and missile pro-
grammes. The US specifically target-
ed the companies and officers of
Irans military elite.
CITYA.M. 17 JUNE 2010
Ex-OFT expert
brought in to
probe banks
REGULATION
BY DAVID CROW AND OLIVER SHAH
SIR John Vickers, the former boss of
the Office of Fair Trading, has been
appointed to lead a wide-ranging
review into the future shape of the
banking industry.
Announcing the appointment in
the Commons, chancellor George
Osborne said Vickers would be asked
to investigate the best size, scale and
function of banks in the future.
He will be supported by four other
commissioners. Martin Taylor, the for-
mer chief executive of Barclays, Claire
Spottiswoode, the ex-head of gas regu-
lator Ofgas, Will Winters, the former
co-head of investment banking at
JPMorgan and Martin Wolf, the FT
columnist, will all contribute.
The review will examine the merits
of separating the retail and invest-
ment arms of universal banks, poten-
tially ushering in a British version of
the now-defunct Glass Steagall Act.
Liberal Democrat business secretary
Vince Cable has repeatedly said the
government should pursue a full-scale
separation of investment and retail
banking, to ensure no institution is
too big to fail.
He said yesterday: We hope and
expect this commission will produce
recommendations to ensure [the cri-
sis] will never happen again.
Sir John, who built a reputation as a
consumer champion during his time
at the OFT, will also be asked to assess
whether reforms will inject more
competition into the banking sector.
Osborne said the previous Labour
government had wilfully consolidat-
ed the banking sector, leading to less
choice for consumers. And the chan-
cellor told MPs he would wait for the
findings of the review, which will con-
clude in a years time, before deciding
how to dispose of the taxpayers stake
in Lloyds Banking Group, Royal Bank
of Scotland and Northern Rock.
Sir John is one of the most experi-
enced members of Britains economic
elite. A Treasury source described his
credentials as copper bottomed.
DIARY: P10
THE PEOPLE BEHIND THE REVIEW
CLAIRE SPOTTISWOODE
A mathematician and econo-
mist by training,
Spottiswoode began her
career at the Treasury before
starting her own software
company. She was director-
general of Ofgas, the utilities
regulator, between 1993 and
1998, and sits on the boards
of Tullow Oil, Gas Strategies
and Bergesen ASA.
Spottiswoode holds a CBE for
services to the gas industry.
MARTIN TAYLOR
Taylor worked as a journalist
with Reuters and the
Financial Times before
becoming chief executive of
Courtaulds Textiles in 1990.
He ran Barclays from 1994,
quitting amid bitter recrimi-
nations in 1998, and has since
served as an adviser to
Goldman Sachs. Earlier this
year, Taylor said investment
banking was parasitic on
retail banking.
MARTIN WOLF
The Financial Times chief
economics commentator,
Wolf has a string of prizes on
his mantlepiece including the
Wincott Foundation senior
award for excellence in jour-
nalism between 1989 and
1997. Wolf has been a forum
fellow at the annual Davos
conference since 1999, and a
member of its media council
since 2006. He holds a CBE
for services to journalism.
News 3
SIR JOHN VICKERS
Sir John boasts a rare pedi-
gree. Educated at Oriel
College, Oxford, he cut his
teeth in the oil industry before
making his name with an
unconventional analysis of the
merits of privatisation in
1985. He went on to teach at
Oxford, becoming chief econ-
omist at the Bank of England
in 1998. Sir John led the
Office of Fair Trading between
2000 and 2005, during
which time he became known
as a consumer champion.
WILL WINTERS
Winters joined JPMorgan in
1983 with a degree in inter-
national relations from
Colgate University in New
York. He studied part-time for
an MBA at the University of
Pennsylvania before working
his way up through corporate
finance, energy swaps, deriva-
tives and fixed income, mov-
ing to London in 1993.
Winters is JPMorgans co-
head of investment banking.
 4 Focus on Mansion House Speech
Osborne wins
Square Miles
quiet approval
REGULATION
BY OLIVER SHAH
CITY figures cautiously welcomed
chancellor George Osbornes decision
to restore financial regulation to the
Bank of England last night, but urged
him to think carefully about the shift.
Osborne said oversight of UK-based
high street lenders, investment
banks, building societies and insurers
would be the responsibility of a new
body under the control of the BoE by
2012. What we are proposing is a
new system of regulation that learns
the lessons of the greatest banking
crisis in our lifetime, Osborne said.
Tom Dolan, a partner at law firm
Pinsent Masons, said the two-year hia-
tus period before regulatory power
passes from the Financial Services
Authority to Threadneedle Street
could cause problems.
He said: One really hopes the FSAs
staff do not become too preoccupied
with what their position will be in
the new regime and they do not lose
their focus It will also be very inter-
esting to see whether the FSA can
continue to attract all the new talent
Old Lady of Threadneedle Street enjoys comeback
POLITICS
BY OLIVER SHAH
BANK of England governor Mervyn
King welcomed his dramatically
extended powers over financial regu-
lation last night, pledging to take
the punch bowl away and turn down
the music at the banking party.
In an address sprinkled with jibes
at Gordon Browns former govern-
ment, King said the transfer of macro-
prudential oversight from the
it requires given the uncertainty staff
may face.
Nathan Willmott, a partner at
Berwin Leighton Paisner, questioned
the governments decision to launch
such a radical overhaul of the system
at this particularly difficult time in
the economic cycle. 2012 looks like a
very optimistic deadline for imple-
menting such significant changes.
Angela Knight, chief executive of
the British Bankers Association,
which represents institutions such
as Credit Suisse and NM Rothschild,
said the industry supported
Osbornes move to simplify regula-
tion. The industry will work with
the government to ensure transition
between regulatory authorities does
not cause disruption to the financial
system and is implemented swiftly
and well.
Richard Lambert of the CBI said the
coalition government was posing the
right questions in the wake of the
banking crisis. The sooner these
issues can be resolved the better, he
said. But Unite the Union accused the
chancellor of wasting time with
rhetoric.
Financial Services Authority to the
central bank would complement its
role as the lender of last resort.
Monetary stability and financial
stability are two sides of the same
coin, King told a City audience at
Mansion House. During the crisis
the former was threatened by the fail-
ure to secure the latter.
The governor suggested the BoEs
authority was undermined in the
run-up to the financial meltdown by
its inability to order banks to make
BoE governor Mervyn king delivers his speech
changes such as raising their capital
ratios. The Banks sermons on the
storms ahead would have had more
influence if at the same time a collec-
tion plate was passed around the con-
The Bank of England
now has an expanded
role as arbiter of both
monetary and
regulatory policy
British Airways
boss Willie
Walsh listens
(top) while
chancellor
George Osborne
(right) makes a
point
gregation so that money was avail-
able in the event the church roof had
to be replaced, he said.
King vowed to use the Banks
expanded role as arbiter of both mon-
etary and regulatory policy to under-
pin a calm economy: Just as the role
of a central bank in monetary policy
is to take the punch bowl away just as
the party gets going, its role in finan-
cial stability should be to turn down
the music when the dancing gets a
little too wild.
CITYA.M. 17 JUNE 2010
Danny
Alexander chief
secretary to the
Treasury (far
left) and
London Stock
Exchange head
Xavier Rolet
(left) were also
at the dinner
King hinted interest rates would
remain low for some time but reiter-
ated the banks determination to
keep inflation below its two per cent
target in the medium term.
The 62-year-old closed his speech in
a show of camaraderie with the chan-
cellor. Referring to George Osbornes
youth, King said: What better incen-
tive [for restraint] than to have as
chancellor someone who has a longer
life expectancy than any previous
chancellor on record?
CITYA.M. 17 JUNE 2010 News 5

Jobless claims fell

Antonio Horta-
Osorio chief
executive of
Santander UK
keeps an eye on
the speakers

Pictures:
Micha Theiner
/City A.M.
even further in May
past four months. Analysts welcomed the improve-

UK ECONOMY
BY JESSICA MEAD The International Labour ment in the jobless figures and said
Organisation measure, showed the they were consistent with the other
THE number of Britons claiming job- jobless rate rising to 7.9 per cent in signs that the economy has been
less benefits shrank again in May but April, equal to 2.47m unemployed. improving for some time, given that

Lord Mayor Nick Anstee:

the headline rate of unemployment However, this was less than the eight the labour market usually lags actual
climbed to almost 2.5m in April, data per cent consensus expectations. GDP by a quarter or two.
from the Office for National Statistics The number of long-term unem- However, they pointed to generous
(ONS) showed yesterday. ployed also rose in the three months rises in public sector earnings aver-

Stop bashing the banks

The claimant count, which records
those receiving Jobseekers
Allowance, fell by 30,900 in May to
1.48m and the April figure was
revised to show a sharper fall than
previously published. The claimant
Anstee vigorously opposed a count has fallen by 136,000 over the
to April with 772,000 people report-
ing that they have been out of work
for more than 12 months, the highest
figure in 13 years. Shockingly, the eco-
nomic inactivity rate climbed to 21.5
per cent of the working age popula-
tion in the quarter to April.
age weekly earnings for the public
sector rose by 3.7 per cent in the three
months to April on the same period a
year earlier. This was not indicative of
a public sector in the midst of severe
austerity, said the Centre for
Economic and Business Research.

REGULATION
BREAKING the financial industry
would wound the wider economy,
Lord Mayor of the City of London Nick
Anstee warned last night, in a
defence of the banking sector.
Anstee welcomed the coalition gov-
European Union-wide tax on banks,
arguing nations should make individ-
ual choices in the way they raise rev-
enues and deal with their businesses.
He also called on Prime Minister
Government pledges help for forgotten millions
David Cameron and deputy leader Nick
Clegg to engage with the EU more thor- POLITICS at least one out-of-work benefit. that as the economy grows and jobs

ernments approach to cutting
Britains budget deficit, but urged
against a populist crackdown on large
lenders. I hope calls for the City to be
cut down to size can now cease,
Anstee said in his address to the
Square Mile at the Mansion House
dinner. The financial services indus-
try and the rest of the economy are
inextricably linked break one and
you wound the other.
oughly to avoid a repeat of tthe passing
of the punitive directive on hedge
funds and private equity firms.
Lord Mayor Nick
Anstee called on
Cameron and Clegg to
engage more closely
with the EU on policy
THE coalition government yesterday
said it would help the forgotten mil-
lions find a job, after new statistics
revealed record numbers of people
are now economically inactive.
Although the number of people
claiming job seekers allowance fell in
May, figures from the Office of
National Statistics yesterday showed
there are almost 5m people claiming
Employment minister Chris
Grayling said the figures proved the
Tories were right to scrap a planned
rise in employer National Insurance
contributions, which could have
thwarted job creation in the private
sector.
He added: With nearly 5m people
on out of work benefits and record
numbers of people who are economi-
cally inactive, we have to make sure
are created in the next few years that
we learn from the mistakes of the
past, and ensure that we provide real
help and support for people on bene-
fits so they can take advantage of
employment opportunities and make
the move into work.
In a heated session of Prime
Ministers questions, David Cameron
blamed the previous government for
the rise in the unemployment rate.

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investments can fall as well as rise. Your capital is at risk.

Whatever the formation, at this price you will be hoping for extra time!

Get in on the action and open an account at

www.stockbrokers.barclays.co.uk/offer
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*This promotion is valid for all online trades in stocks and shares and other appropriate investment instruments listed and trading on the London Stock Exchange or other recognised exchanges where we may execute your instruction, made available to trade by Barclays Stockbrokers
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security purposes.
 6 Focus on BP
Gulf oil spill climbs to 60,000 barrels a
day after scientists evaluate new data
BP IN CRISIS
BY EMMA SADOWSKI
THE VOLUME of oil spilling into the
Gulf of Mexico from the Macondo
well is higher than originally thought
after US scientists estimated that up
to 60,000 barrels a day could be flow-
ing into the water.
Yesterday, US energy secretary
Steven Chu and Interior secretary Ken
Salazar said that a new estimated
range of between 35,000 and 60,000
barrels was more accurate because
the scientists had better data.
The new estimates mark a stagger-
ing increase from the original predic-
tion of 1,000 barrels a day, which was
made almost two months ago when
the Deepwater Horizon rig exploded
on 20 April.
US President Barack Obama called
the spill the worst ever recorded in
our history as local wildlife and com-
munities have been devastated by the
catastrophe.
BP said yesterday that it had
achieved further success in its
attempts to plug the leak after lower-
ing a second containment cap to sit
on top of the current one.
ANALYSIS l Estimates of oil spilling into the Gulf of Mexico (bpd = barrels per day)
60,000bpd
40,000bpd
The new cap, which is called
Q4000, is expected to expand the
amount of oil being captured from
the ruptured blow-out preventer to
between 20,000 to 28,000 barrels per 19,000bpd
day.
Yesterday, BP said it had captured
10,400 barrels of oil and 160,400 bar- 29 April
rels since it initially placed the lower 5,000bpd
marine riser package on the blow-out
preventer. Despite a small fire yester-
day, which delayed BPs efforts, hopes
remain high at the UK oil major that
the new move could optimise the 1,000bpd
collection of oil re-directed to the
Gulfs surface.
BP caves into
US demand as
halts dividend
BP IN CRISIS
BY EMMA SADOWSKI
BP finally caved into White House
pressure yesterday and agreed to set
aside $20bn (13.5bn) to pay for com-
pensation claims arising from the
Gulf of Mexico catastrophe as well as
suspend its dividend payments this
year.
After more than five hours of dis-
cussions, the embattled UK oil major
reached an agreement with US
President Barack Obama and his
administration to ring fence the cash
into an independently run account.
BP said that it will pay $3bn into
the account during the third quarter,
$2bn in the fourth quarter and
$1.25bn every quarter until the full
amount is reached.
Obama has appointed pay czar
Kenneth Feinberg to independently
run the fund, which will have a three-
member review panel to decide com-
pensation payments to victims of the
oil spill.
The president said yesterday: This
$20bn fund will provide substantial
assurance but this is not capped.
BP has also agreed to provide
KENNETH
FEINBERG
BP COMPENSATION
FUND MANAGER
NICKNAMED the pay czar it is no
wonder that President Obama has
turned to Kenneth Feinberg to man-
age the BP Deepwater Horizon
Victim Compensation Fund.
Feinberg, a US qualified attor-
ney, is best known for his role as
special master of the September
11th Victim Compensation Fund,
which he established the regula-
tions for and governed himself.
During the 33-month period that
he dedicated to managing the
compensation to 9/11 victims, he
CITYA.M. 17 JUNE 2010
16 June
11 June
27 May
26 April
another $100m to compensate the
unemployed Deepwater Horizon rig
workers who lost their jobs from the
20 April explosion.
BP will also cut its capital spending
and sell assets worth $10bn to fund
its liabilities.
We regret the cancellation and
suspension of the dividends, but we
concluded it was in the best interests
of the company and its shareholders,
said chairman Carl-Henric Svanberg.
Investors appeared to initially
throw their weight behind the BP
boards decision, with PIMCO, the
worlds largest bond investor, buying
$100m of BP debt. In the US, BPs
American Depositary Receipts rallied
to close up 45 cents at $31.85.
In his strongest show of support so
far Prime Minister David Cameron
said the company should not be
exposed to a string of future damages
claims.
BP boss Tony Hayward
said he was personally
devasted by the spill
ahead of todays
Congressional hearing
sifted through each and every
claim form himself and decided
which families would be awarded
funds.
Feinberg worked for free during
that period and awarded $7bn
(4.7bn) to 97 per cent of
claimants.
Last year, Feinberg was appoint-
ed by the US Treasury Department
to oversee the compensation of
top executives at companies that
have received bailout funds from
the American government.
He also established the Hokie
Spirit Memorial Fund, set up for
the victims of the shootings at
Virginia Tech High School in 2007.
During his time as a lawyer,
Feinberg, who was born in
Massachusetts, established the
Washington office for law firm
Kaye Scholer. Emma Sadowski
 8 News
Fed to keep power post reform Nokia warns on profits as
REGULATION
BY HARRY BANKS
AFTER heavy criticism of its handling
of the financial crisis, the US Federal
Reserve yesterday appeared likely to
escape the most aggressive congres-
sional scrutiny of its interest rate
deliberations.
Lawmakers finalising a sweeping
overhaul of financial regulations
have indicated they may back away
from a measure that would subject
the US central banks monetary poli-
cy to scrutiny. They could also aban-
Sainsburys
sales grow at
sluggish pace
RETAIL
BY VICTORIA BATES
SAINSBURYS followed its arch-rival
Tesco in unveiling lethargic first quar-
ter sales growth yesterday, weighed
down by low food inflation and a
challenging consumer environment.
Like-for-like sales for the first quar-
ter grew at their slowest rate in five
years, just 1.1 per cent, excluding fuel
sales, which jumped due to inflam-
matory oil price pressures. Including
petrol, like-for-like sales rose 4.6 per
cent, while overall group sales rose 7.6
per cent.
Including the effect of VAT return-
ing to its normal 17.5 per cent rate
after the previous governments tem-
porary cut, the supermarkets growth
came in at just 0.3 per cent margin-
ally ahead of Tesco, which on Tuesday
said VAT-adjusted like-for-like sales
inched up 0.1 per cent in the first
three months of the year.
Chief executive Justin King
remained bearish on the outlook for
the consumer environment, which
don a plan to make one of its top offi-
cials a political appointee.
Fed officials had opposed both
measures as intrusions on the central
banks political independence a
hallmark of the Feds operations in
recent times. The Fed, on the defen-
sive early in the reform process, looks
set to emerge as the most powerful
financial regulator when reforms are
complete.
President Barack Obama has made
a rewrite of US financial rules a top
priority in the hopes of avoiding a
repeat of the 2007-2009 financial cri-
he expects to remain challenging,
compounded by the austerity meas-
ures due to be introduced in the
emergency Budget next week.
However, Sainsburys figures were
boosted by strong online grocery
sales, which grew by just under 20
per cent, and a jump in the number
of customers using the firms Nectar
loyalty card scheme.
Sainsburys also enjoyed a positive
impact from a couple of weeks of
sales of its World Cup range, includ-
ing the controversial South African
vuvuzela horns.
ANALYSIS l Sainsbury
360 p 327.20
16 Jun
350
340
330
320
310
22 Mar 13 Apr 4 May 24 May 14 Jun
CITYA.M. 17 JUNE 2010
sis that shook the country.
competition gets tougher
Democrats negotiating the final
Wall Street reform bill say there are
relatively few differences they need to the high-end of the market as well as
TELECOMS
resolve between the competing bills and shifts in product mix toward
passed by the House of Nokia warned yesterday second-quar- somewhat lower gross margin prod-
Representatives and the Senate. ter sales and profits at its key phones ucts.
They aim to finish by 24 June so unit would be weaker than expected The firm had previously predicted
Obama can sign a final package into as it struggles to compete against the units operating margin would be
law by early July. Negotiators are Apples iPhone. 9-12 per cent in the second quarter
seeking a way to reduce the conflicts Nokia said profit margins at its key and 11-13 per cent for the full-year.
of interest that critics say led credit- cellphone unit would be at the lower- The second profit warning in less
rating agencies like Moodys Corp and end of its forecasts, or below, in the than two months has further increas-
Standard & Poors to issue the highest second quarter and in 2010, citing ing pressure on Nokias chief execu-
ratings on toxic securities. tougher competition, particularly at tive Olli-Pekka Kallasvuo. APPLE:P15
ANALYSIS l Breaking down Sainsburys first-quarter performance
Total sales
Like for like
17m Online
grocery sales
7.7% 4.6%
sales
20%
Nectar card holders
(Sainsburys users up
by 800,000 on 2009)
HOW DOES SAINSBURYS PERFORMANCE COMPARE TO ITSInterviews
PEERS?
by Victoria Bates
JAMES MONRO | S&P EQUITY RESEARCH
These results put Sainsburys in line with Tesco in terms of growth, adjusting for Clubcard
sales, but we would have liked to see more given the benefit of two weeks of World Cup sales. But
Sainsburys may need more margin investment to keep up with its rival over the full year.
JONATHAN JACKSON | KILLIK & CO
The food retail sector has been a weak relative performer of late but we think this is a tempo-
rary trend. We prefer Tesco due to excellent overseas growth prospects, but Sainsburys does offer an
attractive prospective dividend yield and the prospect of renewed bid speculation at some point.
DAVE MCCARTHY | EVOLUTION SECURITIES
Sainsburys Justin King was far more cautious than Sir Terry Leahy at Tesco, seeing a con-
sumer under pressure and an absence of inflationary pressure. Fundamentally we remain cautious on
the sector, though Sainsburys share price is driven by occasional bouts of bid speculation.
CITYA.M. 17 JUNE 2010
City warns on
dangers of a
fiscal squeeze
BUDGET2010
BY VICTORIA BATES
BUSINESS leaders have sent a stark
warning to chancellor George
Osborne ahead of the Budget next
week, arguing that substantial tax
increases would threaten to derail the
fragile economic recovery.
The Institute of Directors yesterday
called on the government to set out
credible, hard-hitting plans to cut the
deficit quicker and further than the
financial markets expect.
But it warned that the reduction
plans need to be based overwhelm-
ingly on a cash squeeze in public
spending, reiterating recommenda-
tions for a 4:1 ratio of spending reduc-
tion to tax increases.
Ideally all of the adjustment
should fall on spending but if taxes
are to rise the focus should be on indi-
rect taxation, the IoD said. Higher
direct taxation in particular would
risk a double dip recession and also
undermine the long-term incentive
to work, save and invest.
David Frost, the director general of
the British Chambers of Commerce,
said Osborne faces a difficult balanc-
ing act.
The government must avoid pun-
ishing new taxes that negatively
affect private sector growth, he said.
Short-term revenue gains would
be outweighed by longer-term eco-
nomic consequences, from reduced
business investment to lower rates of
job creation. If tax rises are unavoid-
able, they should be targeted at con-
sumption taxes rather than payroll,
income or profits.
John Cridland, the deputy director-
general of the CBI, added: A radical
re-engineering of public services is a
must if damaging tax rises are to be
avoided. Only an effective cost reduc-
tion strategy can safeguard future
growth.
Osborne will present the emer-
gency Budget on 22 June.
The total value of Lehmans related unsecured claims is $22bn Picture: REUTERS
TONY LOMAS years ago when news of Lehmans col-
lapse sent shockwaves across the
PWC Atlantic.
On top of sifting through Lehmans
accounts, Lomas is also leading the
administration of Enrons European
operations and the fall of MG Rover
Groups production facilities.
Lomas, who is described as
THE 2008 fall of Lehman Brothers has straightforward, up-front and
raised Tony Lomas already distin- focused has spent the majority of his
guished career up a few notches. career advising on the restructuring
The PricewaterhouseCoopers (PwC) and administration of large companies
chairman of business recovery services in the US, Europe and South East Asia.
was already a well known name Previous work for Lomas includes
before he was tasked with one of the giving restructuring advice to banks
most complex administrations of this and bond debt groups across a num-
decade. ber of industry sectors.
Lomas, who made partner at PwC It is likely that the Lehman adminis-
in 1990, was handed the mammoth tration will keep Lomas busy for the
task of sorting through the stricken next decade.
banks European dealings almost two Emma Sadowski
News 9
PwC unveils
7.3bn Lehman
pay out plan
BANKING
THE ADMINISTRATORS of Lehman
Brothers European business could
start to divvy up roughly 7.3bn in
cash from the fallen bank if creditors
give a new claims plan the green
light.
PricewaterhouseCoopers (PwC),
which was appointed as joint admin-
istrator of Lehmans in 2008, unveiled
the plan referred to as the
Consensual Approach that could
see the first cash distribution made
by 2011.
The proposed payback represents
roughly half of the total unsecured
claims, currently valued up to $22bn
(14.8bn), and will see a universal
approach taken to all claims.
Steven Pearson, joint administrator
and partner at PwC said: The consen-
sual approach is an innovative mech-
anism which will enable the claims to
be determined in an expeditious
manner, resulting in significant time
and cost savings to both unsecured
creditors and Lehman Brothers
Europe.
Pearson, alongside partners Tony
Lomas and Mike Jervis were appoint-
ed as joint administrator two years
ago.
The consensual approach is still
subject to creditor approval and could
be launched in the autumn.
 The Capitalist
10
MUSIC STARS BID FAREWELL TO
UNIVERSAL BOSS LUCIAN GRAINGE
A rapturous reception on Tuesday
evening for Lucian Grainge, the cur-
rent head of Universal Musics inter-
national division, who is moving to
New York next month to become
chief executive of the group as a
whole.
Grainge, on crutches owing to a
recent leg injury, stood near the stage
area in a room at the Knightsbridge
Mandarin Oriental hotel as his world-
famous artists lined up patiently to
pay homage to him. Amy Winehouse,
whom Grainge has nursed through
some sticky times, held him in
earnest conversation, as did Welsh
blonde bombshell Duffy. Superstars
The Killers were there too, as was
Texas lead singer Sharleen Spiteri and
Ronan Keating. Entertainment was
provided by Enrique and Jamie
Cullum, who sang a version of Stings
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
An Englishman in New York.
Sir Bob Geldof managed to offend
the more prim and proper members
of the audience with a keynote
speech peppered with expletives, in
which he pointed out that Grainge
was relocating to New York at a time
when British business leaders, thanks
to BPs Tony Hayward, are not exactly
at their most popular.
Geldof also returned time and time
Universals Lucian Grainge (r) is moving to the US to head the group
(and time) again to his favourite gag
of the evening Grainges expansive
waistline and quipped that he must
have injured himself running for a
bus, a seemingly unlikely pastime for
the moneyed music boss.
Also present to pay their respects
were Lord Mandelson, Topshop bil-
lionaire Sir Philip Green, WPP boss Sir
Martin Sorrell and Lloyds chairman
Lord Levene.
LOVE THY NEIGHBOUR
A delightful coincidence chez
Brunswick, apparently, when two of
the financial spinners clients got
down to some back-scratching with no
Sir John Napier: (almost) a PR dream
help whatsoever from their PR advis-
ers.
RSA chairman John Napier got
stuck in to the debate about BP last
week by sending an impromptu letter
to President Obama, castigating the
worlds most powerful politician for
anti-British, prejudicial and person-
al attacks on the oil giant.
RSA is a new client of Brunswicks,
recently won from arch-rival
Finsbury, while the firm is a long-
standing adviser to BP, with boss Alan
Parker spending the vast majority of
his time working on diffusing the sit-
uation. And yet Brunswicks partners
say they knew diddly squat about the
letter until it appeared in the media.
Happy days. Mind you, those same
partners couldnt have been quite as
pleased to read Napiers damning
indictment of BPs public relations
strategy. In your words,
[Hayward] has taken the heat
and not hidden in his office,
Napier wrote. The real
response has been total. You
could argue a poor PR per-
formance, but BP are not
alone in that
SING ALONG
One of the more
talked-about amateur
World Cup ditties has
a distinctly City
flavour to it.
CITYA.M. 17 JUNE 2010
Picture: GETTY
Bring it Back to Blighty was writ-
ten by Mo Park and Stuart Fearn, after
the former bid a few quid for a
wartime film tin on eBay and found
within it a missing Charlie Chaplin
propaganda film, since valued at in
excess of 1m. The film featured a
song by Chaplin, See you back home
in Blighty, which has inspired Parks
World Cup offering.
Hes roped in a bunch of friends
from his village to sing on the chorus,
who all work in the City. James
Goodchild of European American
Capital, KPMGs Paul Chater, JP
Morgans Mark Gibbons, Tony
Whitelock of Jardine Lloyd
Thompson, Nick Watson of Berwin
Leighton Paisner, Land Securities
Paul Dacey and Richard Goodworth of
Control Risks all play footy together
in Henham, Essex. Theyve since
scored over 45,000 hits on YouTube
not half bad for a bunch of finance
lads, even if they can carry a tune.
TIME SENSITIVE
To a DLA Piper/Spectator Business
breakfast at the Merchant Taylors
Hall yesterday, where Olympic
Delivery Authority chairman John
Armitt was arguing that the Olympics
will be worth every penny.
We are on time, Armitt insisted to
his audience, who didnt appear
entirely convinced. Who can blame
them? After all, as the ex-chief execu-
tive of Railtrack and Network Rail,
Armitt used to be responsible for the
trains being on time.
HARD AS NAILS
A tale reaches The Capitalists ears
about Sir John Vickers, the new head
of the commission tasked with inves-
tigating whether to split retail and
investment banking activities.
Shortly after he stepped down as
OFT chairman, Vickers was lecturing
on competition economics at Oxford
and picked the watchdogs notorious
case on replica football shirts to illus-
trate his point. After the lecture, a stu-
dent approached him and quietly
requested that he refrain from using
the same example again, as her father
Allsports boss David
Hughes was one
of those caught by
the case.
Vickers promptly
told the poor girl in
no uncertain terms
where to go, claim-
ing hed talk about
anything he want-
ed.
Clearly not a
man to be trifled
with.
CITYA.M. 17 JUNE 2010 News 11

TheCityUK picks its man to

rejuvenate financial services
post in August. He joins a raft of the across the country and abroad, while

FINANCIAL SERVICES
BY VICTORIA BATES
PROMOTIONAL body TheCityUK has
moved into gear in its quest to trans-
form the perception of the UK finan-
cial services industry at home and
abroad, appointing Association of
Independent Financial Advisers (AIFA)
director general Chris Cummings as
its first permanent chief executive.
Cummings, 42, will take up the
Citys most prominent business lead-
ers in the upper echelons of the new
body, including chairman Stuart
Popham, the senior partner at law
firm Clifford Chance.
We have now taken off and
reached cruising altitude, Popham
said. This signals that TheCityUK is
open for business.
Popham said Cummings would act
as an ambassador for the industry
also taking a hands-on approach to
advising on upcoming changes to
financial services regulation.
However, he refused to be drawn on
the pitfalls of handing powers from
the FSA to the Bank of England.
Cummings is expected to schedule
meetings with chancellor George
Osborne within weeks of joining, to
put forward his regulatory sugges-
tions and concerns. Chris Cummings will join TheCityUK as its first permanent chief executive

Private equity
industry will
fight CGT hike
CITY A.M.
CAMPAIGN
BY VICTORIA BATES
CONCERNS are mounting in the busi-
ness world over the scope of the gov-
ernments proposed hikes to capital
gains tax (CGT), as lobbying intensi-
fied ahead of the emergency Budget
next week.
The latest form of income to come
under the spotlight is the so-called
carried interest, or share of profits,
that private equity bosses receive as
compensation for their investments.
The Tories have signalled that
increased CGT rates will hit non-
business assets, with at least a
degree of relief provided for entrepre-
neurs in order to protect investment
in the UK economy. But carried inter-
est is likely to fall outside the scope of
BVCA chief executive
Simon Walker has
backed the campaign,
arguing the CGT hike
could be very damaging
a business asset, a move senior pri-
vate equity industry figures have
vehemently denounced.
The British Venture Capital and
Private Equity Association (BVCA) has
officially given its backing to City
A.M.s campaign against the govern-
ment bringing CGT into line with
income tax.
London has established itself as a
global centre for private equity and
venture capital, but we will be made
less competitive and less attractive by
any increase in what is already a rela-
tively high CGT rate, BVCA chief
executive Simon Walker said.
What investors need above all is
certainty and stability this could
potentially be extremely damaging.
This newspaper argues that a bet-
ter system would be to tax short term
gains in line with income at 40 per
cent and then taper CGT down to
zero per cent after five years to
encourage long-term investment in
the economy.
The campaign has already received
the backing of a number of high-pro-
file City individuals, including pri-
vate equity guru Jon Moulton, the
founder of Better Capital.

Feds charge former US mortgage

boss with multi-billion fraud case
Prosecutors accused Farkas and

FRAUD
THE former head of the now bank-
rupt mortgage lender Taylor, Bean &
Whitaker Mortgage Corp (TBW) has
been charged in a fraud scheme that
led to multi-billion-dollar losses and
targeted the 2008 federal bank
bailout programme, US prosecutors
said yesterday.
Lee Farkas, 57, served as chairman
of TBW, one of the largest privately
held US mortgage lenders, and was
charged with 16 counts including
conspiracy, securities fraud and bank
fraud, according to an indictment
unsealed in the US District Court for
the Eastern District of Virginia.
unnamed co-conspirators of orches-
trating an eight-year scheme that also
contributed to the downfall of
Colonial Bank, a unit of now-bank-
rupt Colonial BancGroup, one of the
50 largest banks at the time.
Farkas was arrested by the FBI as
he left a gym he owned in Florida,
which is where the firm was based.
The Securities and Exchange
Commission also filed its own
charges against Farkas for his alleged
role in the scheme.
The fraud alleged here is truly
stunning in its scale and complexity,
said Lanny Breuer, assistant attorney
general for the Justice Department.
 12 News
Hong Kong flat sale fails
PROPERTY
BY MARION DAKERS
THE worlds most expensive apart-
ment is to remain empty for now, as
developer Henderson Land revealed
its 38.3m sale had fallen through.
The duplex in the 39 Conduit Road
luxury development in Hong Kongs
Mid-Levels district was snapped up
Henderson Lands 38.3m duplex sale in Hong Kong has collapsed Picture: REUTERS last October for the record sum.
Bonuses are
Its sale, and 19 other deals for
plush apartments in the building,
have now been cancelled causing
Henderson to book a loss of
HK$133.4m (11.5m).
Authorities in Hong Kong will now
investigate the reasons behind the
failed sale, after concerns were raised
about potentially misleading market-
ing tactics.
Henderson told bidders the most
CITYA.M. 17 JUNE 2010
expensive flat was located on the
68th floor, considered a lucky num-
ber in Chinese, without making clear
that several floors had been skipped
to avoid unlucky numbers.
Henderson said in a statement:
The group remains confident in the
prestigious location and the superior
quality of the development, and
intends to continue to be sparing in
considering any sale of units in it.
Top lawyers
back for top
boardrooms
EXECUTIVE PAY
BY MARION DAKERS
THE average FTSE 100 boardroom
bonus topped half a million pounds
in the first half of this year, with an
average pay rise for top directors of 23
per cent, research out today reveals.
Bonus payments rose to an average
of 558,918, a dramatic bounce from
last year when payouts fell 30 per
cent, according to Income Data
Services (IDS).
Basic salaries also rose by seven per
cent on last year.
Steve Tatton, editor of the report by
IDS, said: While not all UK listed
companies have yet published their
reports and the final picture is yet to
emerge, the trend seems clear.
All the signs are that boardroom
bonuses are recovering at a much
faster pace than anticipated.
Across all listed companies, the typ-
ical pay rise was over five per cent.
This is a slight slowdown on previous
years, but above the national average
rise.
The story at smaller firms is more
   "+ *' 
sobering. Directors at Aim-listed com-
panies saw their bonuses shrink by 43
per cent, to an average payment of
35,876, while boardroom bonuses at
FTSE 250 and small-cap companies
remained broadly flat.
Overall payment including salary
and bonus for directors at Aim-listed
companies fell by 0.8 per cent.
Smaller companies are traditional-
ly hit harder by a recession, so that
may explain why the bonuses of
directors of these companies are tak-
ing longer to recover than those of
  
FTSE 100 companies, said Tatton.
Multi-million pound bonuses for
the bosses at Marks & Spencer, Tesco
and BT in the last month suggest the
upward trend at the top is set to con-
tinue.
IDS questioned 237 directors from
180 listed companies for the report.
Creditors rights limited in US Ponzi case US factory output jumps
FRAUD
BY HARRY BANKS
IN a case involving a $255m (173m)
Ponzi scheme targeting Orthodox
Jews, a federal appeals court said dis-
trict judges have the power to block
creditors from beginning involuntary
bankruptcies against entities put
under US Securities and Exchange
Commission (SEC) receivership.
Tuesdays ruling by the US Second
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Circuit Court of Appeals is a setback
for creditors of WexTrust Capital, and
could make it harder for other credi-
tors to challenge SEC receiverships.
Investigators had accused former
WexTrust executives Steven Byers and
Joseph Shereshevsky of conducting at
least 60 private placements purport-
edly to fund commercial real estate
ventures, when in fact they were
diverting money to themselves or to
pay off prior investors. The alleged
Overall productivity rose by 3.2 per
flat revenues for smaller firms who
scheme involved some 240 affiliates
in the United States, the Middle East
and Africa. In 2008 the SEC won a
court order to freeze WexTrust assets,
block creditors from filing their own
bankruptcy petitions, and appoint a
receiver authorised to handle any
WexTrust bankruptcy case as a
Chapter 11 trustee. That court later
gave creditors a limited right to file
an involuntary bankruptcy, but the
creditors appealed.
US ECONOMY
MANUFACTURING production in the
US rose 0.9 per cent in May, fuelled by
a 5.5 per cent rebound in motor vehi-
cle output. The wider industrial out-
put measure rose 1.2 per cent last
month thanks to a 4.8 per cent
weather-related jump in utilities out-
put.
The continued recovery in the US
manufacturing sector shows little
show signs
of recovery
LEGAL
BY MARION DAKERS
THE UKs top 100 law firms enjoyed a
minor resurgence at the start of 2010,
as fee income and chargeable hours
increased in the three months to
April, according to figures out today.
While the revival has not generated
the fees seen before the banking cri-
sis, fee income grew by an average of
4.6 per cent, and chargeable hours by
8.3 per cent, said Deloittes quarterly
legal sector survey.
Annual fee income was down 1.3
per cent on last year, reflecting the
work drought earlier in the year.
The top ten firms, which were hit
most by a slowdown in City and
financial work during the recession,
have bounced back with a 4.3 per cent
rise in fees earned and 12.2 per cent
more chargeable hours.
Those firms also saw fees per fee
earner jump by 11.1 per cent com-
pared to the same quarter last year.
cent, in a sign that redundancies ear-
lier in the year have led to remaining
staff picking up the slack.
Jeremy Black, partner in Deloittes
professional practices group, said:
The results suggest that the finan-
cial year has ended more positively
than it started for many law firms,
though it is against a backdrop of a
much quieter year previously.
Figures for the full year show that
it is the largest ten firms that have
been affected most by the challenging
market conditions, as compared with
tend to have more balanced portfo-
lios, he said.
The survey also highlighted the
pricing pressures faced by firms with
lower recovered rates across firms in
all of the size categories, he added.
Deloittes quarterly survey is dis-
tributed to clients in the legal sector
and acts as a snapshot of the industry.
sign of fading just yet but analysts are
sceptical that this pace of growth can
be maintained for much longer.
Less encouragingly, the number of
new houses under construction
slumped 10 per cent in May to
593,000. This was well below the con-
sensus estimate of 648,000.
Analysts blamed the end of the tax
credit earlier this year, which had
pulled transactions and activity into
the spring from the summer.
CITYA.M. 17 JUNE 2010 News 13

Jupiter shares rise

BSkyB senior inde-
pendent director
Nicholas Ferguson
is determined to
show his independ-

in the grey market

ence

Picture: REX

fund management group BlackRock

FUND MANAGEMENT
BY DAVID HELLIER
UNOFFICIAL dealings in the fund
manager Jupiter saw the shares peak
at 190p, well above the 165p price at
which new shares were issued in the
groups flotation.
Sources said 25m shares were trad-
ed and the closing price came in at
188.5p.
It also emerged yesterday that the
has emerged as a 5.1 per cent share-
holder in the group.
Chief executive office Edward
Bonham Carter said he was pleased
with the result of the share offer,
which saw the shares priced near the
bottom of their range. 'The success of
the offer is a tremendous achieve-
ment for Jupiter, particularly consid-
ering the ongoing volatility in global
stock markets, he said.

Sky set to see

shareholders
approach at 700p a share, which has

MEDIA
BY DAVID HELLIER
NICHOLAS Ferguson, the senior inde-
pendent director of BSkyB, which is
facing an outright bid from its largest
shareholder News Corporation, has
intimated he wants to see some of the
larger shareholders in the group to lis-
ten to their views about the bid price.
Ferguson was travelling yesterday
on unrelated business but he will no
doubt have read comments from lead-
ing shareholders such as hedge fund
manager Crispin Odey demanding at
least 800p per share from News Corp
for the 61 per cent of the group it
doesnt already own.
Ferguson is desperate to show that
the non-executive directors at Sky are
independent and are protectors of the
minority shareholders interests. His
public relations case is being run for
him by Finsbury, while News Corp is
currently conducting its own cam-
paign.
News Corp has made an indicative
been rejected by Ferguson and the
other independent directors who have
described it as undervaluing Sky sig-
nificantly.
Discussions on price have run
their course for now, said one source.
Yesterday Panmure Gordon put out
a research note saying that an offer of
800p a share was achievable.
Any bid, which would value the
satellite broadcasters equity at
around 12bn, could be subject to
lengthy regulatory delays but so far
UK politicians have made conciliatory
noises.
Culture secretary Jeremy Hunt has
said: It does seem to me that News
Corp do control Sky already so it isnt
clear to me that in terms of media plu-
rality there is any substantive change.
Analysts at Barclays Capital wel-
comed news that a bid from News
Corp would not require a further
issue of stock. News is funding the
deal with a $4bn (2.7bn) loan and a
further $8bn from its own resources.

This may be news to some, but

Murdochs move is a good one
Not all of News Corps shareholders
jumped with joy at news of control-
ling shareholder Rupert Murdoch's
plan to buy the 61 per cent of BSkyBs
shares it doesnt already own.
Some may feel it is a convoluted
attempt to serve Murdoch interests
rather than those of the minority
holders in News Corp. Others may
think it is an unexciting move to buy
more of something the group
already controls. Others may have
wanted a return of capital.
But there are surely merits in
doing a deal, if it can be done at a
sensible price of up to around 800p a
share and preferably at no more than
740p. Skys profits are predicted to
rise from 638m to 1.1bn over the
next two years and by buying the
company outright News Corp gains
access to free cash flow. BarCap says
the deal would give News Corp a
more reliable subscription earnings
stream which could be priced at a
higher multiple than the groups
entirely ad supported businesses.
It is the strategic nature of the deal
that should do it for News Corp
shareholders, though.
It is true that few media groups
fully utilise the synergies between
their different platforms. But News
Corp has always excelled. Look how
its UK newspapers, including the
Sun, Times and Sunday Times, have
reported on Premier League football
as if it were a soap opera only for
millions of subscribers to buy into
the live coverage on Skys sports
channels. Also, as News Corp begins
to impose a paywall to its Times and
Sunday Times web-sites, full integra-
tion between News Corp and Sky will
surely lead to ever more enticing
bundling packages for pay tv, broad-
band, the web offering and phone.
Furthermore, where once there
might have been political concern at
the prospect of News Corp and Sky
merging, there now seems a quiet
acceptance the deal will go through
even if there may be some hurdles
along the way.
BOTTOMLINE
Analysis by David Hellier
CITYA.M. 17 JUNE 2010
GM scraps Opel aid request
AUTOMOTIVE
BY HARRY BANKS
OPEL yesterday turned its back on
state assistance for its restructuring
drive, abandoning months of talks
with European governments and
leaving parent General Motors to
fund the programme.
GMs European arm said while its
cash requirements were unchanged,
the process of obtaining state aid was
BUFFETT AND GATES CAMPAIGN FOR CHARITY
INVESTOR Warren Buffett (top left) and Microsoft founder Bill Gates yesterday set-up a
Giving Pledge campaign asking hundreds of billionaire Americans to give away at least
50 per cent of their wealth to charity.
BA and Unite deadlocked
as cabin crew talks collapse
AVIATION
BY OLIVER SHAH
BRITISH Airways cabin staff are
likely to be balloted for more walk-
outs in July after talks between
the carrier and Unite the Union
broke down yesterday.
Acas, the reconciliation service,
said the parties were regret-
tably unable to move closer to an
agreement following discussions
over whether striking staff would
have their travel perks reinstated.
Industrial action by unionised
BA employees, originally organ-
ised in protest at cuts in crew
NEWS | IN BRIEF
AOL close to sale of Bebo
AOL is close to selling social network site
Bebo to private investment firm Criterion
Capital Partners, according to a report in
The Wall Street Journal. AOL bought the
site more than two years ago for $850m
(569.7m), but is now aiming to stream-
line its business since Time Warner spun
it off last year. In April, AOL said it
planned to either sell or close down
Bebo. A spokesperson for AOL declined
to comment. Criterion was not immedi-
ately available for comment.
Icahn has 31pc Lions Gate stake
Billionaire Carl Icahn said yesterday that
12.5 per cent of Lions Gate
Entertainments shares were tendered
after his $7 a share offer, effectively giv-
too slow and complex.
We cannot afford to have uncer-
tain funding plans and new time-con-
suming complex negotiations at this
time when we need to keep investing
in new products and technologies,
Opel chief executive Nick Reilly said
in a statement.
The move comes as a surprise after
GM for months insisted it needed
European governments help to
restructure the loss-making European
Pictures: REUTERS
numbers on long-haul flights, has
already disrupted 22 days of travel
and cost the airline 150m. BAs remains committed
market value fell six per cent in
May as passenger numbers
dropped 14.2 per cent year-on-year.
Unite has vowed to hold a fresh
strike ballot if no deal is reached
soon, raising the prospect of strife
over the peak summer months.
Acas, which has held separate
meetings with management and
union leaders, said: At present
there are no further meetings
planned, but Acas will monitor
developments and our services
remain available.
ing him a 31 per cent stake in the studio.
Under the terms of Lions Gate's $340m
(230.6m) credit facility, any investor
gaining more than 20 per cent of the
studio, home to the Saw films, could
trigger a technical default.
France Tel in 67m bid
France Telecom SA is plan-
ning to bid alongside a French
magazine owner for a con-
trolling stake in Le Monde.
The French telecommunica-
tions operator and Groupe
SFA PAR will bid around
80m (66.9m) for a 65 per
cent stake in Le Monde SA,
said SFA owner Claude
Perdriel yesterday.
brand by slashing 20 per cent of
capacity and rejuvenating the bulk of
the model range through end-2014.
It also comes a week after
Germanys federal government
turned down Opels request for Berlin
to underwrite 1.1bn of its borrowing.
The decision of the German gov-
ernment...was disappointing and
means that the conclusion of these
guarantees is again likely to be
months away, added Reilly.
Fannie, Freddie delist
FINANCIAL SERVICES
BY HARRY BANKS
FANNIE MAE and Freddie Mac, the
largest US home funding companies,
will delist their shares on the New York
Stock Exchange after Fannie Mae fell
below and Freddie Mac held near min-
imum price requirements, the compa-
nies regulator said yesterday.
The companies, each taken under
government control in September
2008, said they no longer met NYSE list-
ing standards and that shares would
now trade in the over-the-counter mar-
ket. The regulator, the Federal Housing
Finance Agency
(FHFA),
A Unite spokesper-
son said: Unite
to finding a settle-
ment which address-
es its members
concerns.
A BA spokesperson
said: We remain
committed to talks.
Shares in BA
closed 2p lower at
210.9p yesterday,
giving the com-
pany a market
capitalisation
of 2.5bn.
News 15
Apple sells over 600,000 units
of iPhone 4 as pre-orders surge
potential customers after the surpris-
TECHNOLOGY
ing volume of online orders triggered
APPLE yesterday sold more than order and approval system malfunc-
600,000 units of its newest iPhone tions.
after just a day of pre-orders, surpass- AT&T, the exclusive US provider for
ing analysts expectations and send- iPhone, said orders of the iPhone 4 on
ing its shares up nearly three per cent Tuesday, the first day of online pre-
yesterday. orders, were 10 times higher than for
The maker of the iPad and iPod the iPhone 3GS last year.
said it and carrier partner AT&T Inc Apple unveiled the slimmer, $199
had been forced to turn away many iPhone 4 last week.
directed the companies to delist com- Fannie Maes closing stock price has
mon and preferred stock from the recently been below the required aver-
NYSE and any other national securities age price, which would mean either
exchange. It said the delisting order delisting or a cure to restore the
was not taken due to the companies price. Curing would not assure main-
performance. taining the minimum or avoiding loss
Stock exchange requirements for of shareholder value, according to the
maintaining price levels and curing regulator. Freddie Macs shares had
deficiencies were the driving force for been holding just above the minimum.
moving to delist, he said. A voluntary delisting at this time
Common shares of each company simply makes sense and fits with the
have hovered near the NYSE required goal of a conservatorship to preserve
minimum average closing price of $1 and conserve assets, said FHFA acting
for most months since the conservator- director Edward DeMarco.
ships began in
September
2008.
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 16 Sovereign Debt Crisis CITYA.M. 17 JUNE 2010

NEWS | IN BRIEF
Euro air traffic down 15.6pc
Spain to reveal bank
stress test results in
European passenger traffic fell by 15.6
per cent in April after taking a hit from
the volcano disruptions. The numbers
mark a drop from the 3.6 per cent rise
reported by the industry in the first

a move to reassure
quarter. Figures from aviation body
International Air Transport Association
(IATA) showed that international pas-
senger traffic was also adversely
impacted by the volcano and fell by 5.9
per cent as compared to the previous
year. IATA warned that although the
travel upturn seems to be on track, there EUROZONE ECONOMY push, the debate in the EU gets a spe-

were some risks ahead, particularly to
do with Europe, where consumer confi-
dence has fallen after the Greek crisis
and fiscal tightening measures.
L&C hires M&S director Michels
Boutique wealth management firm
London & Capital has scored a coup
with the appointment of Sir David
Michels as chairman. Michels is also cur-
rently deputy chairman of retail giant
Marks & Spencer and budget airline
easyJet. He said: London & Capital has
shown throughout the credit crunch
that well run, independent wealth man-
agement companies have retained and
looked after their client banks more suc-
cessfully than many of the larger institu-
tions. Michels spent much of his career
working at the Ladbrokes and Hilton
hotel groups and was also a non-execu-
tive at British Land and RAB Capital.
Spains central banker Miguel Angel wants banking disclosure
BY HARRY BANKS
SPAINS central bank will publish
stress tests on its lenders and
Germany is coordinating disclosure at
EU level, moving Europes banking sec-
tor closer to putting its financial
health on public display.
After media leaks that Madrid was
keen on disclosure of stress tests on
banks to dispel rumours it is about to
seek Greek-style aid, the Bank of
Spain said yesterday it would publish
them in the near future.
A day ahead of todays European
Union summit likely to focus on regula-
tory matters, Germanys finance min-
istry said it was coordinating the issue
with EU partners. Bankers said the two
countries might jointly provide the
impetus for action Europe-wide.
Picture: REUTERS If Germany supports Spain in its
cial dynamic which makes publica-
tion more likely, said one European
banking source.
Spains banks have largely weath-
ered the financial crisis but the capi-
tal of the countrys 45 savings banks
has been eroded by exposure to prop-
erty and construction.
Listed and savings banks have
about 400bn (333bn) in property-
related debts on their books.
The stress tests are to prove that
all banks have sufficient capital to
cope with economic growth scenar-
ios, which at present seem most rea-
sonable, but also future complicated
growth scenarios, Spanish central
bank governor Miguel Angel
Fernandez Ordonez said.
Banks in Spain and the rest of the
European Union have undergone liq-
uidity tests.

Retirement age in
3 0 T H J U N E / 1 S T J U LY 2 0 1 0
R O YA L H O R T I C U LT U R A L H A L L S , L O N D O N France to rise to 62
PENSIONS package designed to rebalance the French President Nicolas

BY HARRY BANKS countrys heavily-indebted pen- Sarkozy hopes the reform will con-
BAHRAIN K U WA I T OMAN Q ATA R SAUDI ARABIA UA E
sions system. vince investors he is serious about
FRENCH citizens face two more There is no magic trick when it cleaning up state finances, which

Everything you need to years of slogging away at work

until they can retire, under new
pensions system reforms unveiled
comes to pensions, labour minis-
ter Eric Woerth told reporters, dis-
closing proposals drawn up after
are set to register record deficit and
debt levels in 2010, and enable
France to cling to its prized AAA

know about investing & doing by the countrys government yes-

terday.
France plans to raise its mini-
mum retirement age to 62 by 2018,
business in the Gulf States from its current threshold of 60.
The government will also increase
taxes for top earners, targeting cap-
ital gains, stock options and other
investment income, as part of a
three months of consultations
with sceptical unions.
He added: We cannot ignore the
fact that the French population is
ageing. We have to confront this
fact. Our European partners have
done this by working longer. We
cannot avoid joining this move-
ment.
sovereign debt rating.
Even after the proposed changes,
France which is renowned for its
lenient working laws will still
have one of the earliest legal retire-
ment ages in the developed world.
Germany plans to raise its retire-
ment age to 67, while Britain and
Italy are standardising at 65.

CITY VIEWS: SHOULD THE UK RAISE ITS RETIREMENT AGE?

Interviews by Marion Dakers

KIM BRADY | WEST LB

Ive got a work pension, but other than that Ive not really considered retirement. I
dont really like the thought of working past 65, but it might be necessary. I wouldnt
have thought people could change jobs easily past that age I cant see many compa-
nies willing to hire a 70 year old.
DAVID JONES | ECLIPSE PRESENTATIONS
Free Exhibition Free Seminars I dont particularly want to work until I drop. I enjoy my work but life can be short. I
Free Networking think a lot more people will start to work part-time if the retirement age is increased
by much more. I have a place in Spain and my wife has a decent pension so
Supported by: Sponsored by:
we should be okay.
ROB COZENS | DEALING ROOM CONSTRUCTION
Pre-Register for FREE entry at Retirement seems too far off at the moment, I dont mind the thought of working
past 65. Why not make everyone work until 70? If it keeps the economy going and
www.gccbritainexpo.com stops people from taking their pensions and living off the state, it should only be
encouraged. If people still want to work they shouldnt be forced to stop.
CITYA.M. 17 JUNE 2010
SocGen: Well double profits
not seek a capital increase and would
BANKING
finance deals by selling off chunks of
BY HARRY BANKS its asset portfolio as part of a broader
SOCIETE Generale set a net profit five-year plan.
goal of 6bn (5bn) for 2012 yester- We need to remain selective, and
day, double its target for this year, as all banks are going to have to be
it seeks to restore investor confi- selective, lets be realistic, in the envi-
dence in a tough business environ- ronment we are entering, Oudea
ment. told investors and analysts.
SocGen executives pitched the tar- Oudea earlier told reporters that
get as part of its five-year strategic Allied Irish Banks stake in Polish
plan at an event for investors, which bank Zachodni, which SocGen has
came as the trial of the banks for- been linked to, was too expensive
mer trader Jerome Kerviel ran into its relative to growth potential.
second week. Deputy chief executive Severin
Speaking at the investor event, Cabannes also said SocGens
SocGen chief executive Frederic Securities Services unit would partic-
Oudea said the bank would make ipate in consolidation, but not in the
selective acquisitions but would short term.
RBS sells off
Pakistani arm
in 34m deal
ment-controlled RBS to sell assets
BANKING
globally as it tries to exit from up to
BY HARRY BANKS 16 countries and focus on core
ROYAL Bank of Scotland yesterday domestic businesses.
said that Faysal Bank is to acquire MCB Bank said in January its bid
99.37 per cent of RBS Pakistan for for RBSs Pakistan operations had
4.298bn rupees (34m). lapsed because it failed to get regula-
Pakistan lender Faysal Bank, which tory approval.
is 68 per cent owned by Bahrain- MCB Bank had agreed in August to
based Ithmaar, beat Egyptian Bank buy 99.37 per cent of RBS Pakistan for
EFG-Hermes in the race to snap up about 59m.
the lender. Earlier this week RBS announced it
Pakistans central bank said in had agreed the sale of its
March it had allowed Faysal Bank Argentinean business to Banco
and EFG-Hermes to conduct due dili- Comafi. That move followed the
gence on RBSs Pakistani operations, agreed sale of the RBS Colombia busi-
which include conventional and ness to Scotiabank.
Islamic banking.
RBS said the transaction was sub- ANALYSIS l RBS
ject to the approval of Pakistans cen- 60 p
45.18
tral bank and is expected to be 16 Jun
completed in the third quarter of 55
2010.
The Pakistani lender has 75
branches in 24 cities and was 50
acquired by the Scottish bank as part
of its disastrous purchase of Dutch 45
lender ABN Amro in 2007.
The planned sale of RBS Pakistan is 40
part of a move by British govern- 22 Mar 13 Apr 4 May 24 May
CITY MOVES | WHOS SWITCHING JOBS
Capital & Regional
The property asset management firm has
appointed John Clare, the former chief execu-
tive of Dixons Group, as its new chairman,
effective from the end of June.
Clare is currently the chairman of JJB Sports
and bed retailer Dreams.
He held the top job at Dixons 14 years
between 1993 and 2007, and was also previ-
ously a non-executive director at real estate
group Hammerson between 1988 and 2009.
Hoffmann joins from Merrill Lynch
Societe Generale Global Private Equity in London, where
The bank has appointed Jan Caspar he was responsible for the German
Hoffmann as head of mergers and business.
acquisitions in Germany and Alessandro Franzosi was previously at Morgan
Franzosi as co-head of M&A in Italy. Stanley in Milan, where he was a man-
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
The 2012 target is above current
consensus analyst estimates for earn-
ings of 5.4bn.
Societe Generales 2012 targets
are solid even if unspectacular,
Citigroup analyst Kimon
Kalamboussis said. He said French
bank stocks including SocGen may
have been relatively oversold
despite a tough market environment.
French banks like SocGen rival
Credit Agricole have been penalised
for exposure to euro sovereign debt
as well as toxic asset writedowns and
market volatility.
SocGen warned that a volatile mar-
ket had led to a mixed second quar-
ter so far for its investment banks
equities division.
BEST OF THE BROKERS
ANALYSIS l Tesco
460 p
397.00
450 16 Jun
440
430
420
410
400
390
380
22 Mar 13 Apr 4 May 24 May 14 Jun
TESCO
ING reiterates a buy recommendation on
Tesco and said this was a fairly lacklustre
first trading update, although the market
shouldnt be hugely surprised. ING noted
Tescos chief executive Terry Leahy expects
the first quarter to be a low point for the
year and he continues to talk about recov-
ering global consumer markets.
Swiss Parliament delays UBS tax deal
SWITZERLAND
A SWISS-US tax deal crucial to the
future of UBS hung in the balance as
the lower house of parliament voted
again yesterday for a referendum,
delaying a final decision until today.
A special panel is set to iron out dif-
ferences between the upper and
lower houses this morning before
they take final votes later in the day.
14 Jun Both houses have to reach agreement
aging director predominantly covering
M&A transactions.
Ambrian Partners
The specialist investment bank has
hired Simon Hawkins as head of oil and
gas research, focusing on mid and large
cap exploration and production stocks.
Hawkins joins from the specialist
independent oil and gas research firm
Omni Investment Research, which he
founded. He has also worked as an ana-
lyst at UBS and Dresdner Kleinwort and
in economics and finance for Royal
Dutch Shell.
He is joined by former Omni col-
league Sam Woodward, who will be
responsible for company modelling and
commodity price forecasts.
Higher costs set to crimp
FedEx profits next year
POSTAL SERVICES
FEDEX reported a quarterly profit yes-
terday that beat analyst expectations,
but said costs would constrain its
2011 earnings.
The company projected 2011 earn-
ings per share in the range of $4.40
(2.97) to $5.00.
We expect the growth in earnings
in fiscal 2011 to be constrained, chief
financial officer Alan Graf Jr said, cit-
ing increases in fixed pension and air-
craft maintenance expenses, in
addition to higher anticipated health-
care costs.
ANALYSIS l Carphone Warehouse
200 p 191.75
16 Jun
190
180
170
160
150
140
130
22 Mar 13 Apr 4 May 24 May 14 Jun
CARPHONE WAREHOUSE
UBS keeps a buy rating on Carphone
Warehouse after Best Buy, which has a
European joint venture with the group,
reported first quarter results and a small
earnings miss. Much of the shortfall was a
result of the phasing of costs. But UBS said
areas relating to Carphone Warehouse
were better than expected.
To appear in Best of the Brokers email your research to notes@cityam.com
or leave the deal in tatters.
Parliaments main body finally
backed the tax treaty on Tuesday but
demands for a referendum on the
issue sent it back to the upper house,
which yesterday, remained unmoved
in its opposition to a popular vote.
If parliamentarians find enough
common ground to approve the deal,
it will draw a line under months of
uncertainty over a legal dispute that
has threatened to bring the countrys
King & Spalding
The law firm has poached a team of
five energy transaction lawyers from
Hogan Lovells to join its London office.
The team includes partners Garry
Pegg and Hywel Jones; Nina Howell,
who joins as counsel; and associates
Leon Sosnowski and Susanna Marshall.
Pegg will also serve as co-managing
partner of King & Spalding in London.
Russell Investments
The financial services group has hired
Tom Richardson as a research analyst in
its London office, as part of a global hir-
ing drive.
Richardson will join the private real
estate research team and will be prima-
rily tasked with researching and rank-
News 17
The consensus is above the top
end of that range, BB&T analyst
Kevin Sterling said of the outlook. So
that tells you that estimates need to
come down. Whats constraining
their earnings is their costs.
For the fourth quarter that ended
31 May, Memphis-based FedEx posted
earnings of $696m, or $1.33 per
share, compared with a year-earlier
loss of $849m, or $2.82 per share.
Analysts had expected earnings of
$1.32 per share.
Revenue rose 20 per cent to
$9.43bn as the global economy con-
tinued to recover.
ANALYSIS l Weir Group
1,100 p
1,102.00
1,050 16 Jun
1,000
950
900
850
800
22 Mar 13 Apr 4 May 24 May 14 Jun
WEIR GROUP
Royal Bank of Scotland (RBS) said Weir
released a strong trading update and pro-
posed a 135m acquisition of a comple-
mentary business based in Malaysia. The
minerals division continues to trade very
well in the second quarter, and RBS raises
its full year earnings per share target by 20
per cent and maintains a buy rating.
biggest bank, UBS, to its knees.
The Swiss lower house originally
rejected the tax treaty last week,
delaying a final decision on whether
to allow the government to hand over
the accounts of 4,450 clients UBS
helped to dodge taxes to US authori-
ties. But Switzerlands biggest party,
the right-wing Swiss Peoples Party
(SVP), shifted position at the second
vote on Tuesday, allowing the lower
house to back the deal.
Edited by Victoria Bates
ing European real estate funds.
He joins from Cushman & Wakefield
Investors.
SEB Denmark
The Denmark branch of European bank-
ing group SEB has appointed Mark
Luscombe as head of client relationship
management and deputy head of mer-
chant banking.
Luscombe was previously country
officer and head of banking at Citigroup
in Denmark. He is due to take up his
new position in the autumn.
SEB opened its Denmark operations
in 1997 as a corporate finance and cap-
ital markets specialist, servicing institu-
tions such as pension and insurance
companies and asset managers.
 18 News CITYA.M. 17 JUNE 2010

NEWS | IN BRIEF
Greeces OTE gets loan approval
OTE, Greeces biggest telecoms company,
got shareholder approval to seek loans
from its parent company Deutsche
Telekom as part of efforts to reduce bor-
rowing costs. Shareholders yesterday
granted management the right to con-
clude debt agreements with Deutsche
Telekom under financial terms and condi-
tions equal to or better than those
offered by a third party, OTE's chief exec-
utive officer Panagis Vourloumis said.
This move would allow OTE to obtain
cheaper funding as Greek companies'
borrowing costs rise amid the country's
financial crisis. No decision has been
taken yet to actually conclude such a
loan with Deutsche Telekom, Vourloumis
said. OTE has total debt at about twice
its EBITDA, Vourloumis added.
Australian Prime
Minister Kevin
Rudd says he still
plans to introduce
United, Continental merger probed the mining super-
US lawmakers yesterday sought assur- tax by 2012
ances on safety, pensions and job securi-
ty from executives of United Airlines and Picture:
Continental Airlines ahead of their merg- REUTERS
er to create the worlds biggest carrier.
United Airlines Glenn Tilton and his coun-
terpart at Continental Airlines, Jeff
Smisek, received a frosty reception from
the House of Representatives aviation
subcommittee, and faced the sharpest
public questioning yet on specifics of the
deal. I will continue to vigorously
oppose it, said Representative James
Oberstar, the chairman of the full
Transportation Committee who says the
deal will harm competition, raise fares
and reduce choice for consumers. The US
Justice Department is currently review-
ing the merger.

Australian PM
stands firm
on mining tax
MINING
BY MARION DAKERS
MINING giants Rio Tinto, Xstrata and
BHP Billiton met with the Australian
government yesterday to discuss a
proposed mining super-tax, but com-
plained that their concerns had not
been addressed.
The battle over the 40 per cent
resource super profits tax showed
little sign of resolution following the
meeting, as the government held
firm on introducing the levy by 2012.
Prime Minister Kevin Rudd said the
government is willing to compromise
with miners, and is serious about
generous transition arrangements.
However, the government has not
ruled out a retrospective tax, which
Rio Tinto described as destabilising
in a letter to shareholders yesterday.
The letter was signed by chairman
Jan du Plessis and urged shareholders
to join the Keep Mining Strong cam-
paign against the measures.
Another sticking point for miners
is the lucrative coal seam gas indus-
try. Companies operating in this
fledgling hybrid sector have argued
for an exemption to any mining tax.
Prime Minister Kevin Rudd said
some sectors may yet be granted loop-
holes. Were not talking about differ-
ent tax rates, he told ABC Radio after
the meeting.
He added: I am conscious that in
transitional arrangements there are
different arguments in petroleum as
against, for example, minerals prod-
ucts.
Many mining firms have cam-
paigned vigorously since the tax was
announced on 2 May, splashing out
on a multi-million dollar advertising
campaign to oppose the move.
Xstrata has suspended operations
in the country as details of the tax are
negotiated. The government is meet-
ing with other mining firms over the
coming weeks to thrash out a deal.
ANALYSIS l Rio Tinto
4200 p
3,347.50
16 Jun
3800
3400
3000
2600
22 Mar 13 Apr 4 May 24 May 14 Jun

Letter to plc shareholders in

RNS Number : 6934N
Rio Tinto PLC
16 June 2010
Dear Shareholder, of this proposed new tax, not
Your board has serious concerns about the impact d for the whole of Australia's
only for Rio Tinto and the minin g indus try, but indee
future economic prosperity. [...] discourage competitiveness,
The Government's proposal will penalise efficiency,
curtail investment and limit jobs growth. grave concerns about the fun-
Rio Tinto, like the rest of the mining industry, has a vacuum and is divorced from
oped in
damentals of the new tax. It has been devel
the day-to-day realities of business. [...] alia under the worst-case tax
We are currently reviewing all our projects in Austr will have on our future
impa ct the propo sed super tax
scenario to assess the to us, is that had this tax been in
growth plans. However, what is abundantly clear much as we have in the Pilbara,
place ten years ago, we would not have inves ted as
cer of iron ore today. [...]
and Rio Tinto would have been a much smaller produ
Yours sincerely
Jan du Plessis
Chairman
ALISON CARNWATH IS READY.ARE YOU?
Alison Carnwath, Chair, Land Securities

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the new financial business awards from the UKs leading, free, business daily.
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For full details and helpful contact points please visit
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 Investment
20 CITYA.M. 17 JUNE 2010

| Listed Products

Trading in food,
glorious food
Agriculture is set to be a mega investment
theme in the future, writes Kathleen Brooks

I
F THERE is one investment theme that
is likely to gather pace in the coming
years it is food. A growing population
will require more of it than ever. This
is good news for agricultural products,
which also proved resilient during the
recent bout of market volatility; for exam-
ple, the Dow Jones Industrial index
dropped 7 per cent in May, whereas wheat
and corn prices remained flat and soy-
beans only lost 2 per cent.
Global supply and demand fundamen-
tals are also expected to be fairly tight this
year. Grain stocks are unlikely to increase
much beyond this years levels, while con-
sumption of grains is set to continue
expanding. Analysts at Societe Generale
expect grain consumption to increase sig-
nificantly by 40m tonnes partly due to
increased demand from China.
Corn prices, in particular, were also
given a boost by the US Department of
Agricultures corn report for June. It fore-
cast a lower crop 11.7bn, down 390m
bushels from its May forecast due to
heavy rainfall across the US corn belt.
Ethanol, which is produced using corn, is
also a major factor for corn prices. Ole
Food production is a Hansen, futures specialist at Saxo Bank,
global mega-trend points out that the US government is plan-
ning on increasing the proportion of
Picture: GETTY ethanol that is blended with gasoline to 12
per cent currently it is 10 per cent push-
ing corn prices higher.
Soybeans is another grain to watch out
for. John Person, president of National
Futures.com, a trading advisory service,
notes that typically soybeans tend to come
under downward pressure in the summer
and autumn months as farmers sell
futures to hedge their profits. But this year
could be different. Soybean meal, made
from soybeans, along with fishmeal, are
important components of animal feed.
However, the oil spill in the Gulf of Mexico
has jeopardised fishing, which could
reduce fishmeal stocks and lead to more
demand for soybean meal.
Analysts at SEB bank say that there is
limited downside risk to agriculture prices

Futures Symposium 2010 Gain exposure

25-26 JUNE 2010
Cavendish Conference Centre West End
22 Duchess Mews, London, England W1G 9DT to the yuan
and the rupee
Join TradeStation for a special two-day futures trading
symposium. This is a unique opportunity to learn about futures
trading and analysis from
m industry and TradeStation
r e
experts in a
live real-time environment.

Featured
F Speakers
ea tur ed Sp eakers
Exchange-traded currencies now offer access
ST
TANLEY
A
V.P
DASH
.P. of Applied Technical
e
NICK McDONALD
Afternoon Trading
r Strategies
Strat for to emerging market FX, says Jessica Mead
Analysis, TradeStation
r Secu
Securities Index Fu
utures
Introduction to Futures Trading
radin
r

T
JOHN PERSON HE high-profile battle between Get exposure to the are based on Morgan Stanleys MSFX
JOHN CARTER and HUBERT Gaining an Edge in the Futures Washington and Beijing over Chinese yuan Indices, which are designed to be a trad-
SENTERS Market Using Seasonal Studies Chinas stubborn policy of pegging able benchmark for foreign exchange rate
its currency to the US dollar has Picture: performance of the relevant currency
Live Trading
r That
and Analysis Tha piqued retail traders interest in Asian cur- REUTERS pairs.
Works MICHAEL BURKE rencies, and the Chinese yuan in particu- Each index has a long and a short ver-
V..P
P. of Institutional Training, lar. While investors have been able to trade sion and will replicate the return of a con-
MIKE BAGHDADY TradeStation Securities currencies such as the yuan and the stant position in the relevant NDF, which
Practical Applications of Price Building Effective Trading
radin
r Indian rupee through offshore non-deliv- is rebalanced quarterly. The non-deliver-
erable forward (NDF) contracts, this has able forward markets and therefore the
Behavior in Rule-Based Trading
radi
r Strategies with Improveded Technical
e
typically been the preserve of professional MSFX Indices and the exchange-traded
Indicator Visualization investors. It has been nigh on impossible currencies reflect investors expectations
for an individual to take a punt on the of movements in the currency. Therefore,
Register today online at TradeStation.com/CityAM
TradeStation.com/City
r AM value of the yuan in the currency markets if you expect that Beijing will start to
due to restrictions and capital controls. revalue the yuan this year analysts still
However, four new products from ETF expect a gradual shift in its currency poli-
Call toll-free 00800 777 76543 to get all the details Securities, which are scheduled to be list- cy to occur some time this quarter ahead
about this valuable two-day TrradeStation event.
eve ed on the London Stock Exchange next of the US mid-term elections.
week, will enable sophisticated retail or Standard Chartered analysts note the
even institutional investors to go either strong positive correlation between the

TradeStation Securities
Member NYSE, FINRA, NFA and SIPC
long or short the Chinese yuan and the
Indian rupee against the US dollar. These
ETCs will have a total expense ratio (TER)
dollar-rupee and dollar-yuan 12-month
non-deliverable forwards. Therefore, any
appreciation in the yuan also ought to
of 0.59 per cent and will be rolled out to bode well for the Indian rupee and the
These are educational workshops designed to demonstrate what we believe are the valuable benefits of other European stock exchanges in the analysts maintain their core overweight
using TradeStation. No offer or solicitation to buy or sell securities, securities derivatives, or futures products coming months. position on the currency. The rupee has
of any kind, or investment or trading advice, recommendation or strategy regarding any security, group of
securities, market segment or market, is intended, shall be given, or in any manner endorsed by TradeStation These emerging market exchange-trad- recently lost ground against the US dollar
Securities, Inc. or any of its affiliates. Past per formance, whether actual or indicated by simulated historical ed currencies (ETCs) are the latest addition as a result of deteriorating global risk
tests, is no guarantee of future per formance or success. Trading on margin increases risk by magnifying the to ETF Securities exchange-traded curren- appetite, but Standard Chartered says that
extent of potential losses. If you are unsure as to whether or not a par ticular investment is appropriate for
you, you should seek independent advice. Visit www.tradestation.co.uk for additional risk disclosures. cy platform, which was launched in these spikes should be temporary and
November 2009. Chief operating officer of pave the way for a more consolidated
This material has been issued by TradeStation Securities, Inc. and approved by TradeStation Europe Limited ETF Securities Nik Bienkowski says that move lower in dollar-Indian rupee.
(an introducing broker to TradeStation Securities, TradeStation Group Inc.s main operating subsidiar y)
as defined in Section 21 of the Financial Ser vices and Markets Act 2000. TradeStation Europe Limited is they were created in response to strong While these are currently the only
authorized and regulated by the Financial Ser vices Authority (FSA A)
and has passpor ts under the MiFID client demand. emerging market exchange-traded curren-
Directive 2004/39/EC in all countries in the EEA (except for Romania). Due to the inaccessibility of the curren- cies available, ETF Securities Bienkowski
cy markets in China and India, the ETCs does not rule out further emerging mar-
CITYA.M. 17 JUNE 2010
because the asset class has lagged behind
other commodity indices (see chart on
right). Soc Gen notes that current prices
are close to breakeven and there is now
little room for any further falls in price,
other than for temporary decreases, since
farmers will respond to low prices by
planting less, thereby pushing up prices
in the future.
So how should investors trade agricul-
tural products? They should consider
futures, says Person. Not only can they be
traded 24 hours a day, but trading is also
on a regulated exchange, and pricing is
transparent. Person recommends a long
position in the November contract for
soybeans, to benefit from any upward
pressure on price caused by the disrup-
tion to fishing in the Gulf. He also sug-
gests that investors consider using
mini-futures contracts, which are one-
fifth the size of the whole contract, and
are the equivalent of 1,000 bushels. This
will reduce investors leverage, and there-
fore their risk, which might be preferable
to retail investors or people without expe-
rience of the futures markets. They also
require a lower margin requirement that
you need to deposit with the exchange.
Saxo Banks Hansen is also attracted to
the December 2010 corn contract, due to
upward pressure on corn demand in the
near to medium term.
The world will always need more food,
and trading agricultural futures is one
way to get exposure to this mega macro-
economic trend.
John Person will be appearing at the Futures
Symposium 2010, 25-26 June, register online at
tradeStation.com/CityAM
ket currency pairs being created in the
future. He notes that Morgan Stanley
has other FX indices available, including
the Brazilian real, the Mexican peso, the
South African rand and the Israeli
shekel. At the moment, we dont have
any specific listing dates. But if investors
start asking for them, then we can bring
them out within a matter of weeks if
need be, or we may just choose to do it
anyway, he says.
But for now, investors should capi-
talise on exposure to the yuan and the
rupee, two currencies which should con-
tinue to hit the headlines over the com-
ing months and years.
LISTED PRODUCT NEWS
JESSICA MEAD
May was a record month for ETF trading
Investment | Listed Products 21
ANALYSIS l Agriculture has lagged other commodity indices
(price indices, weekly closing, January 2009=100)
Industrial Metals
Source: UBS Bloomberg CMCI Sector Indices
190 Precious Metals
Energy
170 Agriculture
150
130
110
90
70
Jan 2009 Mar May Jul Sep Nov Jan 2010 Mar May
A new start for Game? Picture: REX
THE
TIPSTER
GAME GROUP UPDATES
THE MARKET TODAY
C
OMPUTER games and consoles firm
Game Group will update the market
today and investors will be looking for
news on a successor to Lisa Morgan,
who left her position as chief executive in
April. The firms share price has suffered
since December following repeated profit
warnings. Todays statement could mark an
end to the poor performance, but a direc-
tionless update could see the shares head
back towards the March lows of 78p. Capital
Spreads quotes 87.4p-87.9p for Game
Group's share price.
UK design and engineering giant WS
Atkins, which is working on the London
Olympic Park, is expected to post a 10 per
cent fall in underlying profits today.
However, it recently said that it continues
to trade confidently despite turbulent mar-
kets and has a particularly strong cash
position. The shares are up 10 per cent
since the start of June but have met resist-
ance at the 738p level. Traders should look
for a strong close above 740p for a move to
800p. Spread Co offer a spread on WS
Atkins of 730.45p-734.05p.
Luxury handbag maker Mulberry, which
is due to submit a trading update today, has
enjoyed an incredible year. Its share price
has risen from 57p last June to above
200p. However, following this weeks
announcement of a partnership with Target
and with talk of a possible flotation, ana-
lysts believe there may be further climbs to
come. Spreadex has a December-based
Mulberry contract with a spread of 199.1p
214.6p.
The BP saga has weighed heavily on
global equity indices during recent weeks
but there was some positive news yester-
day for the US S&P 500. The index turned
positive for the year and rose above its
200-day moving average for the first time
in a month. Could it finally be that the
worst of the repercussions from the oil spill
in the Gulf of Mexico is over and the down-
trend in equity indices has come to an end?
ShortsandLongs.com has a daily June
spread of 1,108.7 1,109.0 on the index.
Jessica Mead
MAY RECORD ETF MONTH FOR BARCLAYS DB X-TRACKERS ISSUES SHORT BOND ETFS NEW LLOYDS RETAIL BOND AVAILABLE
As the stock markets plummeted in May, ETF Deutsche Banks ETF arm db x-trackers has Lloyds Banking Group yesterday issued its
trading volumes picked up sharply, according this week launched two new daily short bond new retail bond and it will be available today
to figures from Barclays Stockbrokers. ETFs, which are London-listed. One tracks a for trading in the secondary market via plat-
Monthly trading volumes were at their high- daily short UK sovereign index while the other forms such as Bondscape. It pays interest at a
est on record up 44 per cent on the previous tracks a daily short US sovereign index. fixed rate of 5.375 per cent a year for five
month and up 52 per cent on May 2009. Institutional investors can use these products years, with payments made every six months.
Barclays Stockbrokers said that the number to hedge their portfolios against falling bond The bond has been specifically designed with
of clients actively trading also continued to prices. The UK gilts ETF is denominated in the retail investor in mind and is eligible for
rise, increasing 9 per cent compared with the sterling while the US Treasuries ETF is priced inclusion in both ISAs and Sipps. The mini-
previous month and 33 per cent on the year. in dollars. Both products have an all-in fee of mum initial purchase is 1,000 with 100
Heightened volatility meant that FTSE 100 0.25 per cent. Close to 1bn is already invest- thereafter. If you want your money back
ETFs accounted for 39 per cent of all ETF ed in Europe-based ETFs, which replicate an before the bond matures on 7 September
Picture: GETTY purchases in May. inverse performance of Euro sovereign bonds. 2015, then you can sell it on the open market.
 22 Markets & Investments CITYA.M. 17 JUNE 2010

LONDONS TOP 250 Trade these shares from 1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .296.20 2.10 314.80 216.75 COLT Group . . . . . . . . . . . . . . . .135.50 1.10 144.20 98.25 ITV . . . . . . . . . . . . . . . . . . . . . . . .57.00 1.70 71.75 31.75 Schroders . . . . . . . . . . . . . . . . .1320.00 45.00 1450.00 764.00
3i Infrastructure . . . . . . . . . . . . . 112.70* +1.50 114.40 87.50 Compass . . . . . . . . . . . . . . . . . .567.50 +2.00 572.00 307.75 Jardine Lloyd Thompson. . . . . . .571.50 +4.00 604.50 393.00 Schroders N/V. . . . . . . . . . . . . .1068.00 25.00 1185.00 643.50
A.B. Foods . . . . . . . . . . . . . . . .1014.00* 1045.00 718.50 Cookson . . . . . . . . . . . . . . . . . . .463.00 4.60 616.00 220.00 Johnson Matthey . . . . . . . . . . .1572.00* +26.00 1814.00 1077.00 Scot. & Sthrn Energy. . . . . . . . . 1147.00 +14.00 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .136.70* 1.30 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1029.00 +2.00 1047.00 498.50 Kazakhmys . . . . . . . . . . . . . . . . 1193.00 1634.00 567.50 Scottish Mortgage. . . . . . . . . . . .585.00* +6.00 623.50 376.00
Admiral. . . . . . . . . . . . . . . . . . .1415.00 +20.00 1419.00 844.00 CSR . . . . . . . . . . . . . . . . . . . . . .422.40 12.00 524.00 320.75 Kesa Electricals . . . . . . . . . . . . .108.90 2.70 162.00 98.45 SEGRO . . . . . . . . . . . . . . . . . . . .277.70 0.20 403.10 250.00
Aegis . . . . . . . . . . . . . . . . . . . . . 114.80* +2.70 137.30 79.75 Daily Mail A . . . . . . . . . . . . . . . .476.60* 11.90 539.00 264.25 .LQJVKHU . . . . . . . . . . . . . . . . . .225.20* 6.30 255.00 171.40
Afren . . . . . . . . . . . . . . . . . . . . . .89.15 1.45 111.00 38.50 Dana Petroleum . . . . . . . . . . . .1088.00 +16.00 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .137.00 3.30 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .638.50 1.50 656.50 394.30
Aggreko . . . . . . . . . . . . . . . . . .1470.00 +25.00 1489.00 476.25 Davis Service . . . . . . . . . . . . . . .384.60 +4.60 442.30 307.00 Lancashire Hldgs . . . . . . . . . . . .497.40 +1.50 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1249.00 54.00 1310.00 921.00
Alliance Trust . . . . . . . . . . . . . . .325.70 +4.70 352.70 260.25 De La Rue . . . . . . . . . . . . . . . . . .979.00 1021.00 808.50 Land Securities . . . . . . . . . . . . . .628.50 1.50 743.50 415.25 Shaftesbury . . . . . . . . . . . . . . . .364.50* 3.40 426.50 285.00
AMEC . . . . . . . . . . . . . . . . . . . . .846.50* +4.50 891.00 603.50 Debenhams . . . . . . . . . . . . . . . . .58.80 0.70 91.95 53.75 Legal & General . . . . . . . . . . . . . .83.65 +0.35 94.40 49.37 Shire. . . . . . . . . . . . . . . . . . . . .1462.00 +35.00 1526.00 798.50
Amlin . . . . . . . . . . . . . . . . . . . . .382.10 1.00 428.50 291.00 Derwent London . . . . . . . . . . . .1305.00* 33.00 1490.00 844.00 Lloyds Banking Gp . . . . . . . . . . . .55.63 +0.18 75.58 40.42 SIG . . . . . . . . . . . . . . . . . . . . . . .109.10 3.30 146.60 82.25
Anglo American . . . . . . . . . . . .2679.00 3.00 3015.50 1540.00 Dexion Absolute . . . . . . . . . . . . .139.40 0.20 148.00 107.75 Logica . . . . . . . . . . . . . . . . . . . . 118.50 2.10 149.10 71.50 Smith & Nephew . . . . . . . . . . . . .667.00 +13.00 700.50 435.25
Antofagasta . . . . . . . . . . . . . . . .877.00 +1.00 1100.00 546.50 Diageo . . . . . . . . . . . . . . . . . . . 1117.00 +10.00 1176.00 839.50 London Stock Exchange . . . . . . .639.50 +0.50 949.50 588.00 Smiths . . . . . . . . . . . . . . . . . . . 1130.00 +6.00 1177.00 649.00
Aquarius Platinum . . . . . . . . . . .369.40 +0.40 490.00 172.75 Dimension Data . . . . . . . . . . . . . .98.65 1.55 105.00 53.75 Lonmin . . . . . . . . . . . . . . . . . . .1622.00 15.00 2198.00 950.00 SOCO Intl . . . . . . . . . . . . . . . . . .420.20 3.20 444.60 380.60
ARM Holdings . . . . . . . . . . . . . . .290.80 1.20 362.40 106.00 Dominos Pizza . . . . . . . . . . . . . .366.10 +5.00 379.90 192.75 Man . . . . . . . . . . . . . . . . . . . . . .239.20 6.30 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .816.00* 9.00 928.00 493.50
Arriva . . . . . . . . . . . . . . . . . . . . .765.00 2.50 782.50 378.50 Drax . . . . . . . . . . . . . . . . . . . . . .393.90 +9.40 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .341.70* 1.80 412.70 281.50 Spirax-Sarco Eng . . . . . . . . . . .1407.00 +8.00 1591.00 749.50
Ashmore . . . . . . . . . . . . . . . . . . .245.00 1.50 311.20 183.25 DSG Intl . . . . . . . . . . . . . . . . . . . .26.41 0.59 39.75 19.25 Meggitt . . . . . . . . . . . . . . . . . . . .316.20 2.20 328.70 151.75 Spirent Comms . . . . . . . . . . . . . . 113.90 127.80 54.50
Ashtead . . . . . . . . . . . . . . . . . . . 113.70 1.00 128.50 52.00 Dunelm . . . . . . . . . . . . . . . . . . . .335.90 7.10 438.40 202.00 Melrose . . . . . . . . . . . . . . . . . . .224.10 +2.90 251.50 87.75
Astrazeneca . . . . . . . . . . . . . . .3083.00 +4.00 3136.00 2623.00 Easyjet . . . . . . . . . . . . . . . . . . . .437.00 +5.50 499.90 260.00 Mercantile IT . . . . . . . . . . . . . . . .924.00 13.00 1002.00 716.50 Sports Direct Intl . . . . . . . . . . . . .104.30 0.20 134.00 72.50
Atkins(Ws) . . . . . . . . . . . . . . . . .726.00 18.00 747.00 513.50 Edinburgh Inv Tst . . . . . . . . . . . .401.40 3.90 412.40 297.50 Michael Page Intl. . . . . . . . . . . . .394.60 4.80 461.50 218.50 SSL Intl . . . . . . . . . . . . . . . . . . . .849.50 5.50 893.50 484.25
Autonomy Corp . . . . . . . . . . . .1960.00 15.00 2012.00 1121.00 Electrocomponents . . . . . . . . . . .219.40 3.00 245.00 134.25 Micro Focus . . . . . . . . . . . . . . . .540.00 +6.50 550.00 300.90 St Jamess Place . . . . . . . . . . . . .239.30 +0.80 296.90 172.25
Aveva . . . . . . . . . . . . . . . . . . . . 1175.00 +6.00 1237.00 661.00 EnQuest . . . . . . . . . . . . . . . . . . .103.40 1.10 112.70 87.35 Millen & Copthorne . . . . . . . . . . .437.00 6.00 496.30 217.25 Stagecoach. . . . . . . . . . . . . . . . .186.20 +0.10 204.90 114.75
Aviva . . . . . . . . . . . . . . . . . . . . .345.30 +3.90 474.00 274.75 Eurasian Nat Res . . . . . . . . . . .1066.00* +3.00 1276.00 582.00 Misys . . . . . . . . . . . . . . . . . . . . .256.20 5.40 281.70 157.25 Standard Chartered . . . . . . . . . .1705.50 +30.00 1847.00 1115.00
Babcock International . . . . . . . . .580.50 11.00 660.50 448.50 Euromoney Inst Inv . . . . . . . . . . .630.00* +5.00 630.00 191.25 Mitchells & Butlers . . . . . . . . . . .310.20 4.70 343.90 221.75 Standard Life . . . . . . . . . . . . . . .187.70 +1.20 237.00 172.60
BAE Systems . . . . . . . . . . . . . . .325.70 +0.60 389.90 294.20 Experian . . . . . . . . . . . . . . . . . . .639.00 +11.50 664.50 434.00 MITIE . . . . . . . . . . . . . . . . . . . . .229.00 0.20 281.70 204.25 TalkTalk . . . . . . . . . . . . . . . . . . .128.00 +2.00 147.10 106.60
Balfour Beatty . . . . . . . . . . . . . . .253.10* 3.40 328.85 238.50 F&C Comm Prop . . . . . . . . . . . . . .94.50* 0.25 96.80 73.50 Mondi . . . . . . . . . . . . . . . . . . . . .409.80 488.00 182.00 Talvivaara Mining . . . . . . . . . . . .375.00 8.00 501.50 315.00
Barclays . . . . . . . . . . . . . . . . . . .304.85 1.95 394.25 255.00 Ferrexpo . . . . . . . . . . . . . . . . . . .277.10 +2.10 396.20 112.00 Monks Inv Tst . . . . . . . . . . . . . . .295.10 +0.90 321.20 222.00 Tate & Lyle . . . . . . . . . . . . . . . . .487.40 +0.40 492.90 284.75
Barratt Development . . . . . . . . . .101.90 1.70 193.31 91.80 FirstGroup . . . . . . . . . . . . . . . . .395.40 +2.40 448.80 322.75 Morrison Wm . . . . . . . . . . . . . . .263.40 +2.50 306.30 234.25 Taylor Wimpey . . . . . . . . . . . . . . .29.30 0.34 54.90 27.40
BBA Aviation . . . . . . . . . . . . . . .193.70 4.30 220.00 105.00 Foreign & Col Inv Tst. . . . . . . . . .274.80 0.20 297.20 210.25 Murray Intl Tst . . . . . . . . . . . . . . .836.00 2.00 893.50 575.00 Telecity . . . . . . . . . . . . . . . . . . . .408.00 0.60 455.00 272.00
Beazley. . . . . . . . . . . . . . . . . . . .122.50 0.20 124.80 86.00 Fresnillo . . . . . . . . . . . . . . . . . .1055.00 15.00 1084.00 438.00 National Express. . . . . . . . . . . . .232.90 2.50 256.80 135.08 Templeton Emrg Mkts . . . . . . . . .546.00 +3.00 598.00 346.50
Bellway. . . . . . . . . . . . . . . . . . . .614.00* 7.00 927.50 591.50 G4S . . . . . . . . . . . . . . . . . . . . . .282.20 +1.50 285.70 197.90 National Grid . . . . . . . . . . . . . . . 511.50* +5.00 607.65 468.48
Berkeley . . . . . . . . . . . . . . . . . . .767.50 +6.50 989.50 735.00 Genesis Emerging Mkts Fd . . . . .462.20 1.80 484.00 370.00 Next . . . . . . . . . . . . . . . . . . . . .2130.00* 22.00 2360.00 1402.00 Tesco . . . . . . . . . . . . . . . . . . . . .396.00* +1.50 454.90 347.40
BG . . . . . . . . . . . . . . . . . . . . . . 1136.00 +23.00 1248.00 966.90 GKN . . . . . . . . . . . . . . . . . . . . . .127.60 1.90 155.00 67.49 Northumbrian Water . . . . . . . . . .308.00 +10.30 309.90 219.90 Thomas Cook . . . . . . . . . . . . . . .205.50 +0.90 277.20 189.70
BHP Billiton . . . . . . . . . . . . . . .1930.00 +11.00 2346.00 1274.50 GlaxoSmithKline . . . . . . . . . . . .1224.00* +19.00 1347.00 1058.00 Old Mutual . . . . . . . . . . . . . . . . . 115.30* +2.40 127.20 71.00 Tomkins . . . . . . . . . . . . . . . . . . .255.50 1.70 260.20 135.00
BlackRock Mining . . . . . . . . . . . .578.50 1.50 654.50 346.00 Great Portland Estates . . . . . . . .296.40 0.40 332.10 203.75 Partygaming . . . . . . . . . . . . . . . .273.30 +4.20 339.70 213.30 Travis Perkins . . . . . . . . . . . . . . .764.50 5.50 915.00 461.00
BlueBay . . . . . . . . . . . . . . . . . . .292.80 +5.50 393.00 182.25 Greene King . . . . . . . . . . . . . . . .404.00 1.70 504.00 359.50 Pearson . . . . . . . . . . . . . . . . . . .952.00 +9.00 1069.00 574.00 TUI Travel . . . . . . . . . . . . . . . . . .232.00 1.50 313.90 213.80
Booker . . . . . . . . . . . . . . . . . . . . .41.90* +0.15 49.50 32.75 Halfords . . . . . . . . . . . . . . . . . . .545.00 1.50 555.50 299.00 Pennon . . . . . . . . . . . . . . . . . . . .560.00 +1.50 567.00 434.40 Tullett Prebon . . . . . . . . . . . . . . .348.00 2.00 436.20 261.20
BP . . . . . . . . . . . . . . . . . . . . . . .337.00* 5.00 658.20 333.50 Halma . . . . . . . . . . . . . . . . . . . . .264.00 +3.10 278.50 169.25 Persimmon . . . . . . . . . . . . . . . . .364.30 4.00 534.50 340.25 Tullow Oil . . . . . . . . . . . . . . . . . 1166.00 +5.00 1375.00 834.50
Brit Insurance . . . . . . . . . . . . . . .913.00* 5.00 941.00 709.00 Hammerson . . . . . . . . . . . . . . . .367.30 +0.40 460.30 277.00 Petrofac . . . . . . . . . . . . . . . . . .1287.00 +12.00 1294.00 580.00 UK Commercial Prop. . . . . . . . . . .80.30 +0.40 84.90 59.50
British Airways . . . . . . . . . . . . . .210.90 2.00 255.80 117.30 Hansen Trans . . . . . . . . . . . . . . . .89.00 0.50 163.50 78.00 Petropavlovsk . . . . . . . . . . . . . .1268.00 32.00 1370.00 515.00 Ultra Electronics . . . . . . . . . . . . 1611.00 +1.00 1678.00 1064.00
British Amer. Tob . . . . . . . . . . .2196.50 +17.50 2335.50 1644.00 Hargreaves Lansdown . . . . . . . .347.20 +0.60 387.00 197.25 Premier Farnell . . . . . . . . . . . . . .239.00* 7.60 252.60 121.25 Unilever . . . . . . . . . . . . . . . . . .1914.00* 10.00 2024.00 1419.00
British Empire Tst . . . . . . . . . . . .429.80 2.00 467.90 338.50 Hays . . . . . . . . . . . . . . . . . . . . . . .99.10 +0.60 119.00 80.00 Premier Oil . . . . . . . . . . . . . . . .1230.00 +11.00 1431.00 984.00 United Utilities . . . . . . . . . . . . . .538.50 21.00 575.00 429.00
British Land . . . . . . . . . . . . . . . .462.00 3.30 532.00 353.00 Henderson . . . . . . . . . . . . . . . . .132.20 0.40 157.80 83.75 Provident Financial . . . . . . . . . . .905.00* +36.00 986.00 763.00 Utd Business Media . . . . . . . . . .523.50 7.00 579.50 364.75
Britvic. . . . . . . . . . . . . . . . . . . . .474.50* 0.10 497.70 253.25 Heritage Oil. . . . . . . . . . . . . . . . .470.80 +11.40 587.00 409.80 Prudential . . . . . . . . . . . . . . . . . .570.00 +10.00 665.00 350.25
Brown(N.) . . . . . . . . . . . . . . . . . .266.00 +1.80 284.30 204.25 Hikma Pharma . . . . . . . . . . . . . .689.50 5.50 730.00 420.00 PZ Cussons . . . . . . . . . . . . . . . .330.90 +0.30 332.30 172.00 Vedanta Resources . . . . . . . . . .2310.00 +21.00 2967.00 1262.00
BSkyB . . . . . . . . . . . . . . . . . . . .701.00 +1.00 732.00 423.75 Hiscox . . . . . . . . . . . . . . . . . . . .352.30 +7.20 369.30 279.50 Qinetiq . . . . . . . . . . . . . . . . . . . .121.20 0.80 179.10 113.90 Victrex . . . . . . . . . . . . . . . . . . . 1175.00* +11.00 1182.00 498.50
BT . . . . . . . . . . . . . . . . . . . . . . .140.60 +0.80 151.00 98.00 Hochschild Mining . . . . . . . . . . .327.60 +4.30 370.60 220.00 Randgold Resources. . . . . . . . .6175.00 +60.00 6285.00 3351.00 Vodafone . . . . . . . . . . . . . . . . . .140.55* 1.25 153.80 111.90
Bunzl . . . . . . . . . . . . . . . . . . . . .745.00* +3.00 784.50 478.50 Home Retail . . . . . . . . . . . . . . . .231.70* +1.20 336.50 224.80 Reckitt Benckiser . . . . . . . . . . .3279.00 +19.00 3667.00 2686.00 VT . . . . . . . . . . . . . . . . . . . . . . .764.00 1.00 777.50 416.00
Burberry . . . . . . . . . . . . . . . . . . .796.50 4.00 811.00 359.00 Homeserve . . . . . . . . . . . . . . . .2037.00 +7.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .499.00 2.50 548.00 403.75 Weir . . . . . . . . . . . . . . . . . . . . . 1102.00 +15.00 1102.00 437.50
Cable & Wire Comms . . . . . . . . . .58.10* +0.15 150.00 53.00 HSBC Hldgs . . . . . . . . . . . . . . . .648.50* 1.90 766.80 487.00 Regus . . . . . . . . . . . . . . . . . . . . . .83.00 +0.20 125.50 58.75 Wetherspoon(J.D.) . . . . . . . . . . .425.50 5.60 556.00 348.00
Cable & Wire Wwide . . . . . . . . . . .90.35* +1.10 94.80 68.60 Hunting . . . . . . . . . . . . . . . . . . .463.60 3.90 659.50 377.00 Rentokil Initial . . . . . . . . . . . . . . . 118.20 0.80 140.20 82.25 WH Smith . . . . . . . . . . . . . . . . . .432.00 6.50 551.00 405.25
Cairn Energy. . . . . . . . . . . . . . . .427.00 +1.10 441.50 306.80 ICAP . . . . . . . . . . . . . . . . . . . . . .422.20 3.30 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .60.30 99.15 58.45 Whitbread . . . . . . . . . . . . . . . . .1486.00* 1.00 1645.00 778.50
Caledonia Invs . . . . . . . . . . . . .1650.00 +12.00 1759.00 1459.00 IG . . . . . . . . . . . . . . . . . . . . . . . .450.00 +12.00 458.20 260.00 Rexam . . . . . . . . . . . . . . . . . . . .324.70 +3.30 330.50 222.50 William Hill . . . . . . . . . . . . . . . . .178.70 5.30 217.80 160.50
Capita . . . . . . . . . . . . . . . . . . . . .798.00 12.00 829.50 643.50 Imagination Tech Gp . . . . . . . . . .293.10 +3.90 295.00 90.00 Rightmove . . . . . . . . . . . . . . . . .700.00 6.00 729.00 334.00 Witan Inv Tst . . . . . . . . . . . . . . . .445.00 +2.00 487.00 329.50
Capital & Counties . . . . . . . . . . . 110.00 +3.90 125.40 99.60 IMI . . . . . . . . . . . . . . . . . . . . . . .710.00 +3.00 742.00 275.25 Rio Tinto . . . . . . . . . . . . . . . . . .3339.00 +7.50 4104.00 1822.00 Wolseley . . . . . . . . . . . . . . . . . .1560.00 47.00 1742.00 986.00
Capital Shopping Centres . . . . . .338.80 +1.30 580.00 300.20 Imperial Tobacco. . . . . . . . . . . .1949.00 +22.00 2159.00 1547.00 RIT Capital Partners . . . . . . . . . 1139.00 +25.00 1159.00 861.50
Carillion . . . . . . . . . . . . . . . . . . .340.90* +4.70 361.90 236.75 Inchcape. . . . . . . . . . . . . . . . . . .267.90 5.40 347.00 253.20 Rolls Royce . . . . . . . . . . . . . . . .601.00* 2.00 631.50 325.00 Wood Group (John). . . . . . . . . . .323.40 1.40 411.70 231.25
Carnival . . . . . . . . . . . . . . . . . .2669.00 2937.00 1431.00 Informa . . . . . . . . . . . . . . . . . . . .401.00 3.10 439.40 216.00 Rotork . . . . . . . . . . . . . . . . . . .1392.00 +6.00 1482.00 779.50 WPP . . . . . . . . . . . . . . . . . . . . . .700.50 3.00 744.00 380.50
Catlin . . . . . . . . . . . . . . . . . . . . .357.80 +4.70 380.50 284.75 Inmarsat . . . . . . . . . . . . . . . . . . .750.00 29.50 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .45.17 +0.95 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . .1035.00 +1.00 1344.50 555.10
Centrica . . . . . . . . . . . . . . . . . . .304.00* +2.90 320.00 212.50 Intercontl Hotels . . . . . . . . . . . .1216.00 8.00 1244.00 584.50 Royal Dutch Shell A . . . . . . . . .1829.00 +31.00 2068.50 1431.00 Yell Group. . . . . . . . . . . . . . . . . . .29.81 +0.08 86.00 20.25
Charter Intl . . . . . . . . . . . . . . . . .709.50 1.00 855.50 395.25 Intermediate Capital . . . . . . . . . .262.50 4.70 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1757.50 +36.50 1997.50 1437.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .3433.00 +24.00 3711.00 1910.00 Intertek . . . . . . . . . . . . . . . . . . .1450.00* +1.00 1576.00 987.50 RSA Insurance . . . . . . . . . . . . . .124.40 +1.60 142.00 113.10
Chloride Group . . . . . . . . . . . . . .348.00 +2.60 348.00 129.00 Intl Power . . . . . . . . . . . . . . . . . .319.70* +3.90 354.00 228.00 SABMiller . . . . . . . . . . . . . . . . .2001.00 +21.00 2090.00 1210.00 * Ex-Dividend Suspended
Close Bros . . . . . . . . . . . . . . . . .725.00 +1.00 806.50 623.00 Invensys . . . . . . . . . . . . . . . . . . .282.60 +2.70 350.30 212.25 Sage . . . . . . . . . . . . . . . . . . . . . .245.00* +0.20 260.50 167.20
Cobham . . . . . . . . . . . . . . . . . . .234.40* +1.70 278.60 165.90 Investec . . . . . . . . . . . . . . . . . . .495.80 +3.60 565.00 309.75 Sainsbury(J) . . . . . . . . . . . . . . . .327.20* +2.80 373.00 306.50 www.interactivedata.com

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FTSE 100 hits a one-month high boosted Wall Street ends flat as
by strong performance of energy shares mixed data causes caution
THELONDON
2.1 per cent and 1.7 per cent respec-
tively.
But BP shed 1.5 per cent as it faces
powers to curb credit binges and pre-
vent another crisis as it takes over
control of financial regulation in
THENEW YORK shadow over better-than-expected
industrial production data for the
same month. The markets slow

REPORT a bill running into billions of dollars

to pay damages for the Gulf of
Mexico oil spill, the worst in US histo-
Britain, new finance minister George
Osborne announced.
Jim Wood-Smith, head of research
REPORT churn kept the S&P 500 above its 200-
day moving average a day after the
index exceeded that level for the first
ry. at Williams de Broe, described his time in a month. Investors took that

B U
RITAINS top shares extended In the wider market, the mood short-to-medium term outlook for S stocks finished flat yesterday as a positive signal because they view
their winning streak to a sixth brightened after strongly-subscribed the FTSE 100 as uniquely uncer- as cautious comments from the 200-day average as an important
straight day yesterday to a one- government bond auctions on tain. FedEx and weak housing mar- momentum indicator.
month closing high, driven Tuesday in Ireland, Belgium and ket data overshadowed a surge Essentially, the market has held
higher by energy stocks. Spain allayed some anxiety on the ANALYSIS l FTSE in industrial production. on to yesterdays gains and you have
The FTSE 100 ended the day up Eurozone debt situation. 5,237.92 Investors were caught off guard to call that encouraging, said
6,000 16 Jun
20.10 points, or 0.4 per cent, at Banks found support, with Royal after package company FedEx, Michael Sheldon, chief market strate-
5,237.92, its highest closing level Bank of Scotland leading the way, up 5,800 deemed an economic bellwether gist at RDM Financial.
since May 18, notching up its longest 2.2 per cent after Abu Dhabi 5,600
because it serves a wide range of The Dow Jones industrial average
winning run since September, hav- Commercial Bank finalised a deal to industries, said higher costs would added 4.69 points, or 0.05 per cent, to
ing risen 15.69 points, or 0.3 per cent, buy its UAE retail arm for around 5,400 constrain 2011 earnings. FedEx shares 10,409.46. The Standard & Poors 500
on Tuesday. $100m. 5,200
slid six per cent to $78.07. Index edged down just 0.62 of a point,
Energy stocks added the most Standard Chartered rose 1.8 per The US government said housing or 0.06 per cent, to 1,114.61. And the
points to the index as crude touched cent, while Lloyds Banking Group 5,000 starts fell more than expected in May, Nasdaq Composite Index inched up
its highest level since mid-May. BG put on 0.3 per cent. 4,800 underscoring the uneven nature of just 0.05 of a point, or 0.00 per cent, to
Group and Royal Dutch Shell added The Bank of England will gain new 31 Mar 4 May 3 Jun the economic recovery and casting a 2,305.93.
 City Focus
Accountants are
vital for boosting
economies right
across the world
From SMEs to developing nations, everybody
needs good governance, writes Andrew Leck
I
TS clear we are living in unprece-
dented economic times. Indicators
from various sources including
the latest quarterly survey of ACCA
members, the largest of its kind in the
world suggest cautious optimism,
and no more, is appropriate. In 2010, the
financial services sector continues to
dominate all levels of debate, from its
willingness to lend, through remunera-
tion levels, to the very business model
itself.
My colleagues and I have been think-
ing about what makes a truly sustain-
able business world, especially in the
face of economic uncertainty and turbu-
lence. Our answer is a report called In
Pursuit of Sustainable Business, which
were publishing later this week. In this
we discuss the impact of the last two
years, and also look at how the finance
professions can make a difference.
Accounting was not the root cause of
the financial crisis, but it has an impor-
tant role in supporting and advising
businesses on how to find a way out of it.
The financial crisis and its aftermath
is not fundamentally a story about one
country, or one sector. Instead, it has
highlighted the interconnected nature
of the world in which we live and do
business. Moving forward is about creat-
ing the right environment for long-term
business success, with appropriate strate-
gies and plans based on sound analysis
of opportunities for success, with the
clear evaluation and mitigation of risk.
And it is also about the contribution
made by accountants and finance profes-
sionals to business.
In terms of the day-to-day agenda for
senior finance professionals in recent
years, the story has been about cost, cash
and debt. The priorities of chief finance
officers (CFOs) have had to change. The
Deloitte CFO surveys of 2008 onwards
show just how much these priorities
have altered. In 2008, respondents said
cuts and disposals were top of the list; in
2009, they revealed a more measured
view, with opportunities to build a long-
term presence and greater capacity in
markets,
Then in 2010, the respondents looked
to bring new skills into the organisation
as well as cost controls, new products
and deleveraging.Now to the nitty-gritty
of the accountancy world regulation
and standards. The International
Accounting Standards Boards very own
Financial Crisis Advisory Group has
called for the need to accelerate the
adoption of global accounting standards
in financial reporting.
Convergence was underway well
before the financial crisis struck; when
asked in 2008, CFOs overwhelmingly
indicated that they expected uniformity
JODIE PICOULTS 23
NEW NOVEL
| Accountancy READ OUR REVIEW
ON PAGE 26
to bring benefits to their business. Yet
the blame placed on certain aspects of
existing International Financial
Reporting Standards (IFRS) for causing
the credit crunch fair value accounting
in particular has served to decrease the
momentum. From a business perspec-
tive, uniformity will not only cut red
tape, but also improve investor confi-
dence by making financial reporting
more transparent. Far from abandoning
its efforts towards IFRS, the accountancy
profession must now redouble them.
Small and medium-sized Enterprises
(SMEs) are the engine of the global econ-
omy. Yet while studies suggest SMEs have
continued to grow in the downturn, they
point also to postponed investment,
squeezed access to finance and cost-cut-
ting measures. Accountants support to
small businesses has rarely been limited
to regulation and tax, instead spanning
finance, marketing, health and safety,
pensions, sustainability, IT, HR and
beyond.
Now, faced with the prospect that
credit conditions may never recover to
2007 levels, SMEs depend on this support
as never before in order to plan for the
long term. Key to creating jobs and inno-
vation, supporting stability and driving
macroeconomic growth, their contribu-
tion to recovery of developed and devel-
oping economies alike is unparalleled.
And with around 65,000 members work-
ing in or advising small businesses,
ACCAs role, too, is substantial.
DEVELOPING ECONOMIES
It is vital to support accountants work-
ing in developing economies, where the
World Bank and the UN report a lack of
accounting professionals and recognised Accountancy is vital assume that businesses appetite for the and remuneration apparently decou-
accounting standards. The case for to improving their lot. principle of sustainable development pled.
capacity-building is compelling; account- have slowed along with global economic Post-crisis, it is for accountants to
ing and audit are not just important for Picture: conditions, reducing the effects of busi- ensure risk is properly managed and
avoiding crises, they are also central to GETTY ness on climate change must remain a for accountants, with their ethical train-
reducing the corruption which inhibits priority for accountants. Reducing ener- ing and professional responsibilities, to
growth. Moreover, a growing body of gy consumption is not only good for the drive the adoption of ethical and sus-
research reveals that governance environment, but also the bottom line. tainable business practices from the
arrangements of which accounting In the future, accountants must increas- boardroom downwards.
forms part strongly influence social ingly seek cost savings and competitive The reality is that accounting is the
indicators such as infant mortality and advantage through green technology, language of business. Beyond 2010, pro-
adult literacy rates, as well as making helping businesses to decode taxes, sub- fessionals will need to be well-versed in
countries more attractive to investors sidies and penalties and apply a market an increasing number of business oper-
and enabling them to develop more rap- value to potential social and environ- ations, across all sectors and all global
idly. mental impacts. markets.
The accounting infrastructure is part Finally, it has become increasing As the global body for professional
of the entire legal and regulatory system apparent over previous years that busi- accountants, ACCA will seek to address
designed to secure property rights, ness growth is facilitated by the effective the challenges posed for the global econ-
enforce contracts, and provide financial management of resources, the clear omy, not only by providing our members
information all vital to the develop- understanding of risk by the board and with the relevant skills and training to
ment of emerging stock markets. With by getting the fundamentals right. Yet enable business to prosper, but also by
our own surveys suggesting that emerg- the financial crisis has underlined that acting in the public interest through
ing economies are increasingly integral these fundamentals have simply not encouraging governments worldwide to
to the global economy, it is vital that been observed; the finance function has create the conditions for long-term, sus-
these values are enhanced. lacked resources and status within tainable growth.
Next, and while it is tempting to organisations, with risk management Andrew Leck is head of ACCA UK
 24 City Focus | Careers
Terry Leahy became a public personality.
When process
becomes more
important than
Picture: REX
any one person
Terry Leahy shows that egos and
celebrity bosses are best left out of
business, says Jeremy Hazlehurst
F
OR better of worse, some busi-
nesses become identified with
their bosses. Look at Steve Jobs
at Apple, whose share-price
dropped when rumours about his
health circulated last year. Or BP
when it was run by Lord Browne, a
man whose attitude towards the busi-
ness he ran is often compared to that
of Louis XIVs towards the French
nation (letat, cest moi). His succes-
sor Tony Hayward is currently discov-
ering just how profoundly one person
can become identified with a compa-
nys woes. Tidjane Thiam has learned
something similar at the Pru, follow-
ing its troubled attempt to move into
Asia. Sir Martin Sorrell at WPP and Sir
Philip Green of Arcadia are synony-
mous with their firms. And while
they may not have quite the same
star-power, the fates of the CEOs of
the best-known British retailers, such
as Sir Stuart Rose at M&S, are closely
tied to the fortunes of the companies
they run.
So it is inevitable that when Terry
Leahy, who has spent 14 years as CEO
of Tesco and who guided the firm so
well that its sales now top 1bn a
week, announced he was leaving that
some would worry that his successor
cant possibly replicate his triumphs.
But looking more closely at the way
his abdication has been managed
reveals a profound truth about mod-
ern business: that people matter a
whole lot less than process.
SHAKING THINGS UP
The days of the celebrity CEO are
over, says David Taylor, a
boardroom level coach and the
author of The Naked Leader. He
points out that there was a very small
blip in Tescos share price when
Leahy announced his departure, but
that it quickly recovered the lost
ground. Investors know that the busi-
ness will not be damaged by the
change of personnel. Tesco is bigger
than the CEO, Taylor shrugs. People
move on, people die. Nobody should
get het up about whats happening.
Far more important than the per-
sonnel is the way that Tesco has han-
dled the whole thing. Process, and
not people, is what is driving it. The
announcement that the new man,
Philip Clarke, will not take over for
several months demonstrates that
they understand successor-planning,
Taylor says. And there are unlikely to
be any surprising bumps when Clarke
does take the reins. These days, many
big organisations make people prove
that they can do a job before they are
given it. The new man is unlikely to
spring too many surprises when he
takes charge, which will reassure
shareholders and employees alike.
CITYA.M. 17 JUNE 2010
By appointing someone from with-
in, Tesco has shown that it sees the
value of having people in high places
who understand the businesss cul-
ture, something which is applauded
by John Timpson, a CEO of 33 years
standing and the author of Upside
Down Management. It gives confi-
dence to people because they can
expect continuity, he says.
Somebody who is steeped in the
Tesco way is less likely to start shak-
ing things up for the sake of it, to
eagerly try to stamp his own personal-
ity on the business. Outsiders always
have the temptation to bring their
own people in, and make the business
more like the ones they are used to.
In other words, as CEO Clarke will do
things as they have been done in the
past. That is far more important than
bringing in somebody with star
power. The process has not been sacri-
ficed to ego.
TRIED AND TESTED
Also, the fact that Clarke will not take
over for several months also means
that any changes are likely to be con-
sidered ones. Before you take over,
the best thing is to spend a lot of
time listening to people in the busi-
ness about what they want to see hap-
pen, says John Timpson. Again, Tesco
is reassuring its shareholders, and
employees, that the company that
there will be no knee-jerk changes,
and that it will continue to follow the
recipe that has brought it success in
the past.
The cult of the CEO grew up
because it is human nature to concen-
trate on people a management
structure is far harder to talk about,
and doesnt appear in the gossip
pages of newspapers with a model on
its arm. But successful firms are
increasingly faceless. How many
Goldman Sachs bankers can you
name? If you ask people in the City
what makes a successful business
they tell you two things. One, hire tal-
ented people, and two, make sure
that you let them do their jobs. On
the basic level, that means making
sure that the printers dont run out of
paper, and there are no IT glitches
that prevent people working. But it
also means that you also have to give
them the right training, make sure
that they are managed properly, and
that things like successor manage-
ment are addressed.
Whatever level you work at, stabili-
ty, continuity and organisation are
what will bring you success, not big
personalities. That is the lesson that
Tescos exemplary handling of Terry
Leahys departure teaches us. The
king is dead. And thats a good thing
too.
 Lifestyle HOW TO WEAR 25
SHORTS
| Food & Drink SEE TOMORROWS
FASHION PAGE

High class:
m
um nge r where to go

S quaffi
for the best
views in town
Tim Badham
Make the most of the season Going
with wines to see you through Out
dazzling afternoons and long,

W
ITH roof-top bars and outside space
light evenings, says Zoe Strimpel in London hard to come by (or just
plain wet), top floor views and
cityscapes have become the next best

A
H, summer. Despite a frosty few
days, the sun is shining and its the
season for lovely uplifting wines.
Weve got two of our favourite City
wine experts to tell us their top summer
wine picks. Neleen Strauss is the co-owner
and sommelier at Thames-side restaurant
High Timber (the cellar has 40,000 bottles in
it) and Jason Bedford is the owner of the bril-
liant Mercer on Threadneedle Street which
has won awards for its wine list.
CO-OWNER, HIGH TIMBER
NELEEN STRAUSS
BILLECART-SALMON ROS NV
This is a mind altering bubbly drinking
it simply improves your mood, the weath-
er, the world. It is what men should pro-
pose on and women should shop on.
29.99 at Selfridges, Harvey Nichols,
Harrods and Oddbins.
JORDAN CHAMELEON ROS
Made from Syrah and Merlot, this is a
lovely light ros and ideal with light
snacks. Its basically liquid sunshine from
Stellenbosch in a bottle. Great balance and
lingers for a long time. 10 at Jeroboams.
BOLLINGER ROS NV
Like all great wines, this one expresses the
terroir of Champagne. Perfect for celebrat-
ing wins and losses (Wimbledon, anyone?).
50 at Selfridges, Harvey Nichols, Harrods
and Oddbins.
SLOWINE ROS
Made from cool-climate grapes bursting
with summer fruit flavours. Should be
Whats a summer afternoon without a chilled and fruity wine?
enjoyed with slow food. 7.49 at www.saw-
inesonline.co.uk.
BOUCHARD-FINLAYSON PINOT NOIR
Asian spice fruit and ripe cherries, with a
luxurious body and great mouth feel. A
multi-dimensional wine to ponder.
19.99 at www.sawinesonline.co.uk.
OWNER, THE MERCER
JASON BEDFORD
TERROIR DE CHABLIS
PATRICK PIUZE
This is an unoaked, flinty style of
Chablis with lots of summery apple
and citrus acidity. Definitely to be
served with a meal a fish BBQ or sea
trout (just in season now) would be
ideal. 79.50 for six bottles at
Bibendum Wines.
MORGENHOF ESTATE CHENIN BLANC,
STELLENBOSCH
Tropical fruit and peachy flavours are
balanced here with French oak. This has
a long finish and can easily be enjoyed
on its own or with some smoky food.
10.99 at Waitrose.
DOMAINE DES NUGUES FLEURIE
Any Beaujolais style Gamay will
suit summer, but I really like a
Fleurie. These wines have hardly
any tannins because they are
pressed with CO2, and so are
ideal for a little chilling. Theyre
full of summer fruits, especially
raspberry and strawberry
flavours and are great for drink-
ing without food or with lighter
meats like chicken. 8.99 at
Majestic Wine.
GASPARD DE LA THAUMASSIERE
SANCERRE ROS
Sancerre ross are normally pinot noir
where the skins have been left in the wine
briefly to add a little colour and some sum-
mer fruit flavours. Crisp acidity balance
with an ever-so-slight floral note. The
Gaspard is my favourite. 12 at Oddbins.
PRIMROSE HILL BRUT PRESTIGE NV
For summer fizz I like to go patriotic:
English sparkling wines are excellent. This
one is recently released by Chapel Down in
Kent and has some Pinot Noir in it. Its light
and fresh and one of the best sparkling
wines around. 42 at The Mercer.
thing and a desirable year-round alternative.
This week, as one high and mighty new mem-
bers club opens its shiny elevator doors for the
first time, another is scrapping its members only
designation for a more inclusive, still well-
heeled, entrance policy.
While the restaurant and lounge bar at the
top of 30 St Marys Axe (The Gherkin) has
been open for some time to building residents
and a privileged few, the all new Searcys Club
| The Gherkin has just launched on the floor
below (the 38th) and offers a truly luxurious
experience. The soft furnishings and abstract
decorative woodland wall coverings give the
club lounge a contemporary and eclectic
lodge-style feel. However unlike any other
members club, the outer wall is replaced by
sensational panoramic views of the City, seen
through floor-to-ceiling windows set against
the ultra modern exoskeleton of the Gherkin.
The cach of having breakfast meetings,
relaxing lunches or after-work drinks in that
setting at the top of one of the capitals most
iconic buildings will no doubt be appealing
enough, but the carefully considered collec-
tion of fine whiskey may also be a draw. The
extremely amiable GM Mark Harris (formally
of Greens) is such an enthusiast that he even
has his own limited edition whiskey. They are
only aiming for very high flyers at Londons
highest members club, with only 1,000 mem-
berships to be released.
Further good news for those of you wanting
a room with a view is that Paramount at
Centre Point has recently ditched its mem-
bers only policy. Those in the know can now
sample its lounge bar, restaurant and amazing
360-degree viewing gallery by simply calling
ahead. If you are a sucker for spectacular
views and ear-popping elevator rides you
should also consider a trip to the stunning
Attic Bar in Canary Wharf for a New York
sky scraper impression, or the lofty Altitude

Where to eat out this Fathers Day

Show how much offering an astonishingly good
value three-course set lunch for
you love Dad with 16.95. The menu is entirely deter-
mined by seasonality so changes
a good meal, says constantly but expect the likes of
Andalusian gazpacho, Elwy Valley
lamb and vanilla pannacotta. Or for
Zoe Strimpel something more robustly French,
head to Mayfair for Arbutuss equal-
ly excellent sister restaurant Wild
Richard Corrigans brilliant flagship
Corrigans Mayfair (who else could
make fried pigs trotter salad a best-
seller?), theres a welcome offer of
27 for a three course Sunday lunch.
Think shellfish bisque with cognac
cream followed by roast rib eye and
prune and almond bake.
For something different, and a lit-
tle spicier, Chutney Mary (535 Kings
masterclass with mixologys most
creative brain Tony Conigliaro, at
his increasingly famous Islington
bar 69 Colebrooke Row (of the same
address). For 125 per head, youll
learn the history about each of the
Beefeater cocktails on the menu and
make up five drinks with the maes-
tro himself. Book at www.69cole-
brookerow.com.
360 on Embankment for simply the best views
of Parliament in town.
Established spots on the radar for the best
views in London include the Portrait
Restaurant at the National Portrait
Gallery, Vertigo 42,
Kensington Roof
Gardens,
CoqDargent,
Galvin at
Windows and Tate
Modern Restaurant.
Another exclusive mem-
bers club on the way also
looks set to offer views from
its roof terrace. 5 Hertford
Street should be quite special as

P
ROMISED youd see Dad on
Sunday but not sure what to
do with the old man? Fear not:
many of Londons best dining
establishments have Fathers Day
deals on offer so the two of you can
have a good catch up over a great
meal. Michelin-starred favourite
Arbutus (63 Frith Street) will be
Honey (12 St George Street), where
theres three delicious courses for
25.50.
Go south-west for a 26 three-
course lunch at Rowley Leighs bril-
liant Caf Anglais (8 Porchester
Gardens) an added bonus, if you
like this kind of thing, will be the
magician in situ on the day. At
Road), one of Londons most iconic
Indian restaurants, is breaking from
the norm by offering three courses
from the a la carte menu for 22.
Youll probably never have a kebab
this good ever again.
If youre not after simply eating,
but fancy doing as well, take Dad
along for a Beefeater 24 cocktail
If Dad likes sweets and tooling
around in the kitchen Belgravia
chocolatier William Curley (198
Ebury Street) is doing a Fathers Day
chocolate-making masterclass
geared towards small children
accompanied by guardians. If hes
got grandkids, its ideal. 40 per
child. To book, call 020 730 5522.
its a venture from Robin Birley,
former owner of Annabels and
the Birley Group. Tim Badham is
the MD and founder of
Innerplace, Londons leading
entertainment and lifestyle spe-
cialists. Membership from
40 per month.
www.innerplace.co.uk
 26 Lifestyle | Books
Picoult strikes gold again
A mentally ill teen is
charged with murder
in this heartbreaker,
says Zoe Strimpel
HOUSE RULES
BY JODI PICOULT
Hodder, 16.99
hhhhi
FOR an easy-reading, best-selling author,
Picoult tackles some pretty serious issues.
Fans will recognise her favoured theme of
troubled or ill children, written through
the perspectives of those nearest to them,
in House Rules.
But with this, her 16th novel, Picoult
seems to be stepping her writing up a
notch, and the book demonstrates a new
calibre of craft. Expert prose meets a high
level of real-life detail, a smooth plot and
the magnetism of a book that is impossi-
ble to put down.
Picoults inspiration for this book was
her cousin David, diagnosed as autistic
when a toddler. She has talked of his frus-
tration as a child who couldnt express
what he needed, and of a moment when
her aunt had to literally sit on him to stop
him having a meltdown in a store.
The central character here is Jacob
Hunt, a super-smart 17 year-old with
Aspergers. He takes all language literally
and has a fascination with forensics,
which leads him in the middle of the
night to turn up at real-life crime scenes.
His mother Emma hires a social worker to
help him lean more normal social behav-
iours. Jacob takes to her, even developing
an awkward crush.
But when Jess is found dead, he
becomes the main suspect for her murder
and is hauled to court for a trial. The book
becomes chiefly concerned with the ques-
tion of whether someone with a mental
handicap like Jacobs can be treated fairly
in a court proceeding like this one. After
all, his twitches and oddities look awfully
like guilt to judges and juries.
Told from the harrowing perspectives of
Emma, Jacob, his lawyer, the police officer
who arrested him and last but not least,
his angry brother Theo, who feels neglect-
ed in light of his brothers illness, this is a
multi-dimensional, deeply human look at
a familys saga.
Heavy stuff, as I said. But from the
moment you pick this up to the moment
you finish (probably a short time), youll
forget distinctions between heavy and
light. You will simply be absorbed.
WORLD CUP WISHES
BY ESHKOL NEVO
Chatto & Windus, 12.99
hhhii
YOU may not have heard of him, but in his
native Israel, Eshkol Nevo is a household
OUT OF OFFICE
TIMOTHY BARBER
CITYA.M. 17 JUNE 2010
LIFE
COACH
Buy her an
engagement
ring shell love
I
TS not just the cost that can make buying
an engagement ring a daunting process.
Once youve passed the man-mountain of a
security guard and entered the museum-
like atmosphere of a shop overflowing with rare,
sparkling objects, its hardly the easiest environ-
ment in which to speak up and admit that, actu-
ally, you havent a clue what youre looking for.
It can be a very pressurised atmosphere,
and you can feel quite hindered about asking
questions, says Adrian Demondez, studio man-
ager at Star Jewellers in Hatton Garden
(www.starjewellers.com), which holds relaxed
evenings to introduce chaps to the ring-buying
process, under the name Project Rock.
From three-stone trilogy rings to classic soli-
taires (single diamonds), youve got a lot of
options to consider. Demondez advises doing a
bit of research to work out what sort of ring
your beloved would prefer. Does she tend to go
for vintage styles, or is she into new, modern
design? Has she commented on friends rings?
Which ones does she hover over in magazines?
You need to take note of all these little things
to give you pointers.
name for his 2008 best-seller Homesick, Jodi Picoult. Decide on the budget youre prepared to run
which stayed on the Israeli best-seller list DEAD LIKE YOU to, and stick to it resolutely. If the price youve
for 60 weeks, winning two major prizes. BY PETER JAMES Picture: PA set and the type of ring youre after dont
While World Cup Wishes seems too Macmillan, 18.99 match up, the jeweller will be able to suggest
timely a book to refuse just now, its actu- alternatives to fit into your price-range, and
ally about far more than football. Indeed, hhhii Demondez says diamonds that are nominally
the Cup itself is merely a conceit that inferior when inspected under magnification
allows Nevo to delve into the dramas and will often still look beautiful when viewed by
passions of four male friends. ALREADY a bestseller, Dead Like You shows the naked eye. Dont be afraid to ask the jew-
It starts at the World Cup of 1998. Yuval, why Peter James is a perennial favourite, eller for guidance.
a philosophy graduate who works as a whose novels are snapped up by fans and You can get huge differences between
freelance translator; Churchill, a lawyer; devoured. In part, its down to his sturdy stones that, aesthetically, seem very similar, so
Amichai, already a father with twins, and grasp of police procedure. Otherwise its do you really need to get the pricier one? says
Ofir, who works in advertising, always the sordid precision with which his villains Demondez. A good jeweller should give you
meet together to watch the tournament. operate, and the clever responses of his enough information to make a proper, informed
This year, they decide to make a list of well-meaning heroes. decision, but not so much that youll be over-
their dreams and ambitions for the follow- Brighton. After a glitzy New Year ball at whelmed and glaze over.
ing four years and to say where theyd the Metropole Hotel, a woman is brutally The famous four Cs that categorize a dia-
like to be by the time the next World Cup raped on the way back to her hotel room. mond cut, carat (meaning size), colour and
rolls around. Shortly afterwards, other women are clarity are the variables that define the look
World Cup Wishes tells the story of attacked. In both cases their shoes were of a diamond. Colour is classed on an alphabet-
what happens to the friends over that four taken, which puts Detective ic scale that starts with D for the most flawless
year period their loves, fall-outs, mar- Superintendent Roy Grace in mind of the white. At H a tint of yellow will come in as the
riages, kids and above all their experience Shoe Man, an attacker who had committed price drops, before rising again as colour
of maturing and living in Israel with all its similar crimes in 1997 bearing the same becomes intense coloured diamonds are
messy realities. trademark of shoe-theft. His own wife was extremely rare. A one carat (about 6.5mm
The narrator is Yuval, but it is clear from tragically caught up in the spree in 1997 so across) G diamond on a white gold band could
the beginning that something awful has as the parallels start trickling in, Grace cost around 5,500 whereas a flawless D
happened to him, instantly adding a becomes increasingly preoccupied with the stone the same size could be worth 15,000.
thrum of unease to the story. And, we cold case. To the naked eye, however, Demondez says the
realise by and by, he may not be the most The dual narratives make for a well- difference will be negligible.
trustworthy narrator. made police thriller, grittily English and Generally, Id only advise to go below H if
The name is but a way in this book is with crafty personal development. The you want a large diamond but a lower budget.
about far more than footie and will delve premise isnt the most original and per- You can still get a beautiful stone, but it will be
to the core of male and female readers haps it sounds a bit like numerous other less clear and contain a few marks when
alike. If Nevo isnt well known in the UK crime novels. But its a sure bet if youre a inspected closely.
yet, after this book, he deserves to be. fan of the genre. Since theyre the most popular, round-cut
diamonds are the most expensive. You can save
a bit of money by going for a more obscure
shape but bear in mind that if you
choose something quirky like a
heart shape youll need to get a
wedding band shaped to fit
Left, the Udderbellys BRAZIL! BRAZIL! AT UDDERBELLY MENDESS THE BRIDGE PROJECT RETURNS around it. You also need
headline show, Brazil! The comedy and performance festival at Last year director Sam Mendes and Old Vic to get the wedding
Brazil!. Right, Juliet the Southbanks inflatable, inverted main man Kevin Spacey launched their band in a matching
Rylance and Edward cow-shaped tent is into its second cross-Atlantic, Shakespearean rep sea- metal to that of
Bennet in As You Like vibrant year, and the show set- son with UK and US actors. It the engagement
It at the Old Vic. ting the place alight is a returns this month with produc- ring, so keep that
Brazilian mix of samba, tions of As You Like It rotating in mind if you
capoeira, carnival music, acro- with The Tempest, with actors intend to splash
batics and football a perfect including Stephen Dillane, out on platinum.
backdrop to World Cup fever. Juliet Rylance and Ron Cephas
Until 18 July, Udderbelly, Jones. Until 21 August, The Old Vic,
Southbank. www.udderbelly.co.uk. The Cut. www.oldvictheatre.com. BY TIMOTHY BARBER
CITYA.M. 17 JUNE 2010 Lifestyle | TV& Games 27

BBC1 BBC2 ITV1 CHANNEL4 FIVE

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm Match of the Day Live:
2010 FIFA World Cup: France v
Mexico (Kick-off 7.30pm).
10pm BBC News
10.25pm Regional News
10.35pm Question Time:
Topical debate from Witney,
chaired by David Dimbleby.
11.35pm This Week: The past
seven days in politics; Holiday
Weatherview
12.25am Sign Zone: Countryfile
1.25am Sign Zone: Halcyon River
Diaries 2.25am Sign Zone: When
Romeo Met Juliet 3.25am Sign
Zone: Cracking Antiques 3.55am-
6am BBC News
6pm Eggheads: Quiz show,
hosted by Dermot Murnaghan.
6.30pm Great British Railway
Journeys
7pm The Royal Academy
Summer Exhibition 2010:
A Culture Show Special
8pm Springwatch 2010
9pm Gareth Malone Goes to
Glyndebourne
10pm CHOICE Mock the Week
10.30pm Newsnight: Weather
11.20pm Match of the Day:
2010 FIFA World Cup
11.50pm The Royal Academy
Summer Exhibition 2010:
A Culture Show Special
12.50am BBC News
3.55am-6am Close
6pm London Tonight
6.30pm ITV News
6pm The Simpsons: Marge
recalls how she met Homer.
6pm Home and Away
6.25pm Live from Studio Five:
TV PICK
7pm Emmerdale 6.30pm Hollyoaks Topical reports.
7.30pm Women on the 7pm Channel 4 News 7.30pm Fifth Gear: Five News
Frontline: Tonight 8pm Location, Location, Update
8pm Emmerdale Location: Helping prospective 8pm Britains Greatest
8.30pm CHOICE Coronation buyers in the Home Counties. Machines with Chris Barrie:
Street 9pm Big Brother: Coverage of The actor seeks out the
9pm Taggart events from the final series of greatest technology of the
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COFFEE BREAKCopyright Puzzle Press Ltd, www.puzzlepress.co.uk


QUICK CROSSWORD
   

SUDOKU KAKURO
16 13 23 39 12 15 
10 7
27 28  
30 29
Place the numbers from 1 to 9 in each empty cell so that each 15  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 45
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 6 8 6

above or to the left of it. 30 4
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     WORDWHEEL A R
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authority than an
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2 Actor ___ Baldwin, who
Using only the letters in the Wordwheel, you have 6 Molten rock (4)
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T M played Jake in the 2009
7 Moral weakness (4) lm Its Complicated (4)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E 9 Habitation (9) 3 Precious blue

LAST ISSUES or more, all must contain the central letter and
letters can only be used once in every word. There
E H 11 Distant but within
gemstone (8)
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SOLUTIONS
sight (poetical) (3)
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language to another (9)

QUICK CROSSWORD 6 2 3 2 5 9 6
seen in a garden (7) 5 Forest god (5)

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 Punter
28 CITYA.M. 17 JUNE 2010

| Racing

RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THIS AFTERNOONS ROYAL ASCOT ACTION

Spanish raider Bannaby can cause

Gold Cup upset at a massive 25/1
S
ADLY there is no Yeats in this
afternoons Ascot Gold Cup which
means that there will be a new
name engraved on the base of the
trophy for the first time in five years.
Aidan OBrien will be hoping that Age
Of Aquarius can fill the hoof prints left
by his former stablemate, but he has
plenty to prove and is just 9/2 with
William Hill.
Henry Cecil will be hoping for his
sixth winner of this prestigious race
when he saddles the well-fancied mar-
ket leader Manifest. The four-year-old
son of Rainbow Quest was mightily
impressive when waltzing away with a
weak looking Yorkshire Cup last time
and heads the betting at 3/1 with Paddy
Power. However, he is by no means a
Ask ridden by Ryan guaranteed stayer and will be running
Moore (R) wins the over this marathon trip for the first
Investec Coronation time this afternoon.
The Ribblesdale looks very difficult,
but I give PIPETTE a decent chance of
notching her third career win. Andrew
Baldings daughter of Pivotal disappoint-
ed when drawn on the wrong side of the
track in the 1,000 Guineas, but she
bounced back to form at Goodwood last
time, finishing second to Oaks heroine
Snow Fairy. The step up in trip is certain
to suit and at a double-figure price she is
a decent each-way proposition.
The Britannia Handicap is always one
of the most difficult puzzles to unravel
at Royal Ascot and this year looks no dif-
ferent. Andrew Balding has a good
chance with Balducci who has done
nothing but improve this season, but
Im going to take a chance with Barry
Hills RANSOM NOTE. He was backed as
if defeat was out of the question at
Newmarket last time, but found one too
good in Business As Usual. His trainer

I GET
Cup run at Epsom The two that interest me are Sir
In 2009. Michael Stoutes ASK and Spanish raider
BANNABY. The former won the Group 1
Picture: GETTY Coronation Cup at Epsom last season
and looks sure to run a huge race, if stay-
ing the trip, at 6/1. He runs best when
has always thought the world of him
and Id fancy him to reverse the placings
with Michael Jarvis runner. He could be
very well-handicapped.
Finally, Sir Michael Stoute and Ryan
Moore can combine to take the conclud-

THREE 10
fresh (won on seasonal reappearance for
the last three years) and will be having
his first run of the campaign tomorrow.
Bannaby is one of the only true stayers
in the race and is a massive price at 25/1
with William Hill and Paddy Power.
ing King George V Stakes with LONDON
STRIPE. He looked good on his seasonal
reappearance at Newmarket and is the
type his master trainer does very well
with.

BETS FREE.
Henry Candys DINKUM DIAMOND
looked something special when winning
POINTERS...
the National Stakes at Sandown last DINKUM DIAMOND 2.30pm Royal Ascot
time. He beat Chilworth Lad that day, PIPETTE e/w 3.05pm Royal Ascot
who ran well to finish a staying on fifth ASK 3.50pm Royal Ascot
in the Windsor Castle on Tuesday, and BANNABY e/w 3.50pm Royal Ascot
RANSOM NOTE e/w 4.25pm Royal Ascot
EXCLUSIVE TO NEW TELEPHONE/ONLINE CUSTOMERS*
Ive been impressed with his mentality
on both his career starts. LONDON STRIPE 5.35pm Royal Ascot
Simply stake 10 today on the World Cup and we will
give you 3x10 World Cup Free Bets. Quote WORLD30
For a top Royal Ascot tip, just Ask
TODAYS MATCH
taking and he can provide Sir Michael
Stoute with another winner in a contest

WINNER
that he last won with Shangamuzo in 1978.
All eyes will be on Her Majesty today
though with the hugely popular Queens
Hat betting coming to a head. I like the
look of Peach, favourite at 4/1, although

NELK A
perhaps Her Maj will show support for

50/O1RE FIA
TIPS FROM THE TOP WITH Purple Moon in the big race with an
appropriately coloured titfer at 7/1?
PADDY POWER SELECTIONS...
RST AND FRANCE
TO SC
ASK is a horse that won at the highest
level over a mile and a half and when con-
Royal Ascot 2.30pm Al Aasifh

TO BEAT MEXICO 2-1

nections stepped him up to two miles last
Royal Ascot 3.50pm Ask
time in France, he was simply devastating.
With Yeats no longer in the picture,
today's Ascot Gold Cup looks there for the

INSIDER
the

oddschecker.com
All the latest odds and 100s of bookie freebets

M
ANIFEST (10%) is something
we have all heard plenty
about over the last five
months but in a political
sense rather than the horse. Really it
0800 44 40 40 williamhill.com wasnt until the demolition of a quality
field in the Yorkshire Cup that this
horse really stole the show. Henry
*3x Free 10 bets are win singles and will be added to your account on settlement of rst bet. Free Bet must be on a different event to the initial stake. Free Bet
Cecils charge powered clear of Purple
stake not included in any winnings/returns, valid for 7 days. Correct promo code must be used. All prices subject to uctuation. William Hill rules apply.
Moon at York and should have enough
Over 18s only. Prices correct as at 4.00pm yesterday. FOR ADVICE & INFORMATION VISIT WWW.GAMBLEAWARE.CO.UK
firepower to keep everything at bay
today in the Gold Cup. Tom Queally has
proved within the last 12 months that
he is a true star of the turf and a good
judgement of pace should see him add
another Group 1 to his impressive tally.
Horses that have performed well
on Polytrack seem to thrive on
Ascots straight course. BUSINESS
AS USUAL (4%) comes from the
Michael Jarvis yard that often pro-
duces a well handicapped beast for
top draw handicaps and Neil Callan
can steer this son of Invincible Spirit
to victory in this afternoons Britannia
Handicap. ROBENS ROCK (2% e/w)
could be one from the other side of
the draw.
Today could also see the Queen in
the winners enclosure. Her Majestys
QUADRILLE (5%) hails from the all
conquering Hannon yard and would
be a very appropriate winner.
 Sport
Dream debut for Guyon as
Byword is toast of Ascot
ROYAL ASCOT
2010
BY JON COUCH
ROOKIE jockey Maxime Guyon
capped a dream British debut by lead-
ing Byword to victory in the Prince of
Waless Stakes at Royal Ascot.
The 5-2 favourite, trained in France
by Andre Fabre, proved just too good
for Henry Cecils Twice Over as owner
Khalid Abdullah celebrated a one-two
in the Group One contest.
Byword came through the field to
win by half a length, with long-term
leader Tazeez holding on for third, a
further three-quarters of a length
behind.
Im absolutely delighted to have
been given the opportunity to ride
here today by Mr Fabre, I never
thought it would happen, 21-year-old
Guyon said. Everything went perfect
in the race and Im delighted.
Fabre, meanwhile, praised his
young jockey, admitting it was gam-
ble which paid off.
The horse had the ability to win
the race, but I was a bit worried about
the inexperience of the jockey, a
delighted Fabre said. He had a per-
CAPELLO CONFIRMS BARRY
WILL FACE ALGERIA
BUT ENGLAND BOSS HINTS AT CHOP
FOR GREEN AND HESKEY: P31
fect ride without any bumps but I
knew the horse had the ability.
Of Guyon, he added: He has nerves
and he is young, which I always like.
He rides all the horses at home and
knows what they want and he doesnt
use his whip a lot, which I like.
Earlier, 8-1 shot Rainfall set a
course record to become the first filly
since 1991 to win the Jersey Stakes.
Ridden by champion jockey Ryan
Moore, the Mark Johnston-trained
three-year-old edged out Red Jazz on
the line with Rock Jock coming home
third.
Moore then completed back-to-back
THE WORLD CUP
AT BOISDALE OF
BISHOPSGATE
Enjoy the World Cup in style with
a 72 screen & air-conditioning in
the Champagne & Oyster Bar
BOISDALE OF BISHOPSGATE SWEDELAND COURT,
202 BISHOPSGATE,
EC2M 4NR 020 7283 1763
INFO@BOISDALE-CITY.CO.UK
WWW.BOISDALE.CO.UK
Guyon wowed the
Royal Ascot crowds
on Byword in his
first ever ride in
Britain.
Picture: PA
wins when leading home
Strawberrydaiquiri (9-2) to victory fol-
lowing a tough battle with last years
winner Spacious in the Windsor
Forest Stakes.
The grey, trained by Sir Michael
Stoute, fought back over the last fur-
long to win by a head with favourite
Antara a further three lengths back.
Frankie Dettori bagged the biggest
winner of the day, riding 28-1 shot
Invisible Man to a surprise win in the
Royal Hunt Cup, while Maqaasid won
the Queen Mary Stakes to give jockey
Richard Hills a winner for trainer
John Gosden.
29
FOOTBALL TRADER
BEN CLEMINSON
TAKES A LOOK AT
TONIGHTS MATCH
BETWEEN FRANCE
AND MEXICO
A
FTER a rather bumpy build-
up, Raymond Domenechs
France must feel like the
world and his dog is against
them. They did themselves no
favours in their first night bore-fest
against Uruguay however and,
with things level in Group A after
the first round of games, few
would be shocked to see Les Bleus
return home after their group
stage, as they did in 2002.
The French are narrow favourites
for tonights match with Mexico in
Polokwane at 11/8, which is perhaps
justified when you consider that
Javier Aguirres side were held to a
1-1 draw against South Africa.
Despite the superior talent sup-
posedly boasted by the French, con-
fidence is clearly low, and I expect
Mexico to come out with a narrow
win. I suggest backing the Central
American side at a decent 5/2 with
William Hill. Weve seen a fair few
1-0 results so far, so theres also
plenty of value in backing Mexico
to win by this scoreline at the 15/2
available on Betdaq.
Sporting Index have set their
total goals market at a paltry 2.05-
2.25 and as only two of the 14
matches before yesterday featured
more than two goals, we shouldnt
even consider buying.
However, selling at such a short
spread doesnt really appeal either.
Given their inadequacy in the final
third last time, it may be worth
thinking about selling Sporting
Indexs France Team Hotshots
spread at 14, where Ribery, Anelka
and Govou are awarded 25 points
for each goal. None have a better
ratio than one goal in 4.5 games,
but even so, its a bit too risky for
me and Id prefer to stick my
spread betting stake on a simple
sell of Frances supremacy at 0.2.
POINTERS...
Mexico to win at 5/2 with William Hill
Mexico to win 1-0 at 15/2 on Betdaq
Sell France/Mexico supremacy at 0.2 with
Sporting Index
 30 Sport CITYA.M. 17 JUNE 2010

Westwood:
Write off Tiger at your peril, I will learn
he remains the man to beat from my old
US OPEN 2000
mistakes
-12 Tiger Woods (USA)
+3 Ernie Els (RSA)

GOLF
M-Angel Jimenez (Spa)
+4 John Huston (USA) LEE WESTWOOD has vowed to learn
+5 Lee Westwood (Eng) from previous experiences in a bid to
OUR MAN AT PEBBLE BEACH land a first Major at Pebble Beach this
Padraig Harrington (Ire) weekend.
SAM TORRANCE The world No3 has finished in the
top three in each of the last three

W
ITH every day that passes Major tournaments, but missed good
and with every shot he opportunities to break his duck,
plays, Tiger Woods appears notably at The Open last year and the
to be looking more like his US Masters at Augusta in April.
old brilliant self. Westwood goes into the second
The world No1 might still be a little Major of the year with a spring in his
game shy ahead of the US Open, step having clinched the St Jude
which starts today, but he remains Classic in Memphis last week.
very much the man to beat. Now, the 36-year-old has Pebble
Who can forget 10 years ago when Beach in his sights, determined not to
Tiger made the golfing world sit up repeat the costly errors over the last
and take notice when winning the US 12 months.
Open on this very course at Pebble Theres a couple of things I would
Beach by a record 15 shots. change, explained Westwood, reflect-
While that day will have little bear- ing on his near misses. I would
ing on this events of this weekend, change the outcome of all of them for
you can rest assured it will be firmly starters, but theres only really The
lodged in the back of Tigers mind as Open Championship that I feel like
he goes in search of a fourth US Open Ive let it slip, let slip a chance. With
title and a 15th Major. my own doing or let one go.
Since his much-publicised return, All in all I think Ive played pretty
Tiger, bit by bit, is beginning to find good the last rounds of the Majors, I
his feet and actually hit the ball pret- just havent quite done enough, really.
ty well at Muirfield Village last week. Westwood tees off at Pebble Beach
Pebble Beach is one of the worlds Woods is slowly returning to his best form ahead of this weeks US Open at Pebble Beach. Picture: ACTION IMAGES alongside world No1 Tiger Woods and
finest courses. It can be ultra forgiving Ernie Els for the opening two rounds,
on a clear day, but can swallow you up four Englishmen and an Irishman in ably have stood a better chance here if ever, is that he has been drawn along- starting today and cant wait to get
if the elements are unkind. Tiger the worlds top 10, this is our best he finished second in Memphis last side Tiger for the opening two going.
knows that as well as anyone, but will chance yet. Lee Westwood, in particu- week as winning back-to-back tourna- rounds, which is never the ideal draw Its probably my favourite golf
need to be on top of his game. lar, has a great chance to finally end ments is never easy. But the world for what he brings to the party. course in the world so Im obviously
his run of near misses and capture a No3s confidence will be sky high But Westwood will be able to han- delighted to be back and very excited
SKY HIGH first Major, especially after his win in after that and he will be delighted dle that, for sure, and along with the about the week coming up, he added.
No Briton has won the US Open since the St Jude Classic last weekend. with the way he is playing. in-form Luke Donald, represents our I played here in the US Open in
Tony Jacklin 40 years ago but with Strangely enough, Lee would prob- The bad news for Westwood, how- best chance to end that 40-year wait. 2000 and I played okay.

Results
WORLD CUP GROUP A
Tour over for Banahan Hosts hammered
after Barbarians citing
South Africa ..............(0) 0 Uruguay...............................(1) 3
Forlan 24, 80 (pen)

by fired-up Forlan
Att: 42,658 Pereira 90
P W D L F A GD Pts
Uruguay 2 1 1 0 3 0 3 4
France 1 0 1 0 0 0 0 1
Mexico 1 0 1 0 1 1 0 1
South Africa 2 0 1 1 1 4 -3 1
ed to be involved in Saturdays second

GROUP H RUGBY UNION

Honduras......................(0) 0 Chile........................................(1) 1 Test with the Wallabies in Sydney, he
Att: 32,664 Beausejour 34 MATT BANAHANS England summer would have been in contention for with the largely cautious formations
Spain................................(0) 0 Switzerland .....................(0) 1
Att: 62,453
P W D L F A GD Pts
Fernandes 52
is over after he was found guilty of a
dangerous tackle in Tuesdays win
the final tour match, against New
Zealand Maori on Wednesday.
SOUTH AFRICA 0 prevalent at this World Cup.
Forlan, now of Villarreal in Spain,
Chile 1 1 0 0 1 0 1 3 over the Australian Barbarians. Coach Martin Johnson must now was the principal threat and was first
Switzerland
Honduras
Spain
1 1 0 0 1
1 0 0 1 0
1 0 0 1 0
0
1
1
1
-1
-1
3
0
0
The Bath wing was cited for a lift-
ing tackle on Australian centre
decide whether or not to appeal
Banahans suspension as he prepares
URUGUAY 3 to beat Itumeleng Khune when his 30-
yard shot deflected off Aaron
Berrick Barnes during the 15-9 victory to name his side for Saturdays Test Mokoenas shoulder and dipped over
CRICKET
FRIENDS PROVIDENT T20 - SOUTH DIVISION: Essex v
and was handed a two-week suspen- today. WORLD CUP 2010 the bewildered goalkeeper.
sion, ruling him out for the rest of Centre Mike Tindall missed train- BY FRANK DALLERES He and the lively Luis Suarez con-
Somerset (Taunton); Essex 177-7 v Somerset 167-9 (N R D
Compton 74). Essex (2pts) beat Somerset by 10 runs. the tour. ing yesterday but Johnson is confi- tinued to torment the hosts but it was
SOUTH DIVISION: Gloucestershire v Sussex (Hove); Although Banahan was not expect- dent the Gloucester centre will be fit. FORMER Manchester United forward not until the 80th minute that Forlan
Gloucestershire 178-4 (J E C Franklin 90) v Sussex 170-9. Diego Forlan struck twice as Uruguay doubled the lead and silenced Loftus
Gloucestershire (2pts) beat Sussex by 8 runs. pushed hosts South Africa to the Versfeld. Khune brought down
ASIA CUP (Dambulla); Bangladesh 167(V Sehwag 4-6) v
India 168-4 (G Gambhir 82). India won by 6 wickets.
TODAYS DIARY
Murray seeded fourth for SW19 brink of elimination at the first hur-
dle.
Man-of-the-match Forlan netted in
Suarez, earning a red card, and
Forlan emphatically deposited the
spot kick high past substitute goal-
World Cup Group A each half and Alvaro Pereira headed a keeper Moneeb Josephs.
France v Mexico (7.30)..............................................................................................
TOP 10 SEEDS late third as the slick South The vuvezelas were muffled again

Group B TENNIS
Argentina v South Korea (12.30) ........................................................................ Americans overpowered a toothless, in the fifth minute of stoppage time
Greece v Nigeria (3pm) ............................................................................................ HOME favourite Andy Murray has- MEN WOMEN 10-man Bafana Bafana to go top of when Forlan found Suarez and his
CRICKET been seeded fourth for this years 1. Roger Federer 1. Serena Williams Group A. cross was met at the far post by
Wimbledon championship. 2. Rafael Nadal 2. Venus Williams It was South Africas first defeat in Pereira for a simple third.
Friends Provident T20 - North Division: Derbyshire v Notts
(Derby), Yorkshire v Lancashire (Headingley Carnegie). Six-time champion Roger Federer 3. Novak Djokovic 3. Caroline Wozniacki 14 matches but leaves them in grave
South Division: Middlesex v Surrey (Lords).
Tour Match: Ireland v Australia (Dublin).
retains top seed despite being overtak-
en by Rafael Nadal as world No1.
4. Andy Murray
5. Andy Roddick
4. Jelena Jankovic
5. Francesca Schiavone
danger of crashing out at the group
stage. A win for either Mexico or GROUP A
The womens seedings stuck to the France today would leave the home TEAM PLD W D L F A PTS
GOLF 6. Robin Soderling 6. Samantha Stosur
world rankings, with the possibility team on the thinnest of ice. Uruguay 2 1 1 0 3 0 4
US Open (Pebble Beach, California).
of a fifth all-Williams Wimbledon 7. Nikolay Davydenko 7. A. Radwanska Uruguay, meanwhile, look likely to
8. Fernando Verdasco 8. Kim Clijsters Mexico 1 0 1 0 1 1 1
final alive with the Americans seeded progress to the last 16, and were
SPORTS EDITOR JON COUCH one and two. 9. David Ferrer 9. Na Li rewarded last night for adopting a France 1 0 1 0 0 0 1
email sport@cityam.com The draw is made tomorrow. 10. Jo-Wilfried Tsonga 10. Flavia Pennetta bold three-man strike-force at odds South Africa 2 0 1 1 1 4 1
CITYA.M. 17 JUNE 2010
Id still rather be a Spain supporter
OUR MAN IN SOUTH AFRICA
TREVOR STEVEN
S
PAIN may have had a shocker
yesterday, but Id still be feeling
far happier if I was a fan of the
European champions than I am
as an England follower.
Barry is back
but Capello
may axe pair
WORLD CUP
2010
BY FRANK DALLERES
FABIO CAPELLO has confirmed
Gareth Barry will return to the
England side for tomorrows clash
with Algeria but admits he may
drop Emile Heskey and Robert
Green.
Midfielder Barry is fit to make
his first start of the tournament
after shaking off the ankle injury
that kept him on the bench for
Saturdays draw with the USA. The
Manchester City player will take the
holding role in front of the back
four, meaning captain Steven
Gerrard is likely to revert to the left.
That move would probably see
James Milner lose his place in the
starting line-up, and Capello
Spanish lose favourites tag as Swiss
stun Del Bosques men in opener
SPAIN 0 bookmakers to Brazil, but Del
SWITZERLAND 1 they had not deserved.
WORLD CUP 2010
BY FRANK DALLERES
SPAIN coach Vicente del Bosque
blamed bad luck after the much-
fancied European champions
crashed to defeat in their opening
game, causing the biggest shock of
the tournament so far.
Former Manchester City mid-
fielder Gelson Fernandes bundled
home the only goal early in the sec-
ond half and Switzerland stood
firm in the face of intense pressure
to pull off a famous win.
Defeat was only Spains second in
their last 45 games and saw them
We have had a chance to see every
team in action now, and I think it is
fair to say Vicente del Bosques men
suffered the most disappointing
result of all.
But it was Fabio Capellos sorry lot
who put in the worst performance, at
least compared to their and our
expectations.
England had problems all over the
pitch in their opener against the USA
and Ive been disappointed by the
noises coming out of the camp since
the game. They dont seem to have
acknowledged how bad they were.
Capellos team selection was poor.
For instance he picked Ledley King on
revealed yesterday that he is also
considering two more changes.
Goalkeeper Greens place is
under serious threat after his fail-
ure to hold Clint Dempseys routine
shot gifted the Americans an
equaliser. Heskey, despite impress-
ing against the USA, could be axed
in favour of a more prolific striker,
with Capello favouring Jermain
Defoe over Peter Crouch.
Gareth [Barry] will play this
Friday, said the Italian. He is okay,
there is no problem. He has trained
very well and he is fit.
Commenting on Green, Capello
hinted heavily that he is leaning
towards dropping the West Ham
stopper, saying he feared for the
players mental state.
He made a mistake, a big mis-
take, he added. In the second half
he played well because he made a
lose their favourites status with
Bosque said his team would bounce
back from a setback he insisted
Someone had luck against
Spain today, he said. It was not
our day. We tried to win in an
orthodox way, and at points our
second half performance was hero-
ic, but we could not find the goal.
The defeat forces us to win both our
remaining games, there is no other
option. But, the World Cup is not
over yet.
Spain, who won all 10 of their
qualifying matches, completely
dominated possession in Durban
but struggled to pierce a well-
organised and determined Swiss
rearguard. Barcelona striker David
Villa, ploughing a lone furrow up
front, buzzed but lacked his usual
ruthlessness when he did occasion-
the right side of central defence when
he usually plays on the left for
Tottenham. King is used to the move-
ments of his normal side and, when
you are carrying an injury, that just
makes it harder to adapt.
He should let Wayne Rooney play
on his own up front, with Frank
Lampard and Steven Gerrard bomb-
ing forward in support, and Id have
Joe Hart in goal. He is in form, ready
to go, and Algeria, who are likely to
have very few shots, are perfect oppo-
nents to pick up experience.
By contrast, Germany have been
the outstanding team in the opening
exchanges and it will be interesting to
Barry will slot back into central midfield against Algeria.
good save, but I have to decide. Its a
problem of the mind, you remem-
ber always the mistake. You have to
chose the best keeper mentally at
this moment.
Axing Green would leave Capello
with a straight choice between vet-
eran David James and in-form rook-
ie Joe Hart. Of who would partner
Wayne Rooney in attack, Capello
said it was a toss-up between
Heskey or Defoe.
ally find a chink in his opponents
armour.
Switzerland took the lead in the
52nd minute when Eren Derdiyok
hared onto a flicked-on long ball
and smuggled it past goalkeeper
Iker Casillas, allowing Fernandes to
profit from the chaos and tap past
prone defender Gerard Pique into
the empty net.
Spain lie bottom of Group H after
Chile beat Honduras 1-0 earlier yes-
terday in Nelspruit, Jean
Beausejours goal earning them a
first World Cup win for 48 years.
GROUP H
TEAM PLD W D L F A PTS
Chile 1 1 0 0 1 0 3
Switzerland 1 1 0 0 1 0 3
Honduras 1 0 0 1 0 1 0
Spain 1 0 0 1 0 1 0
Sport | Football 31
see if they can
keep it up.
A l t h o u g h
Australia are not
the strongest of
opposition, no-one
expected Germany
to produce such a
pacy performance
featuring four
goals of real quali-
ty. TODAYS MATCHES
Perhaps the injury to captain
Michael Ballack has been a blessing Argentina v South Korea
in disguise, in that it has allowed Johannesburg, ko 12.30pm, ITV1
other players, such as the impressive
Mesut Ozil, to come to the fore. Greece v Nigeria
Bloemfontein, ko 3pm, BBC1
France v Mexico
Polokwane, ko 7.30pm, BBC1
Rooney warming
to Jabulani ball
ENGLAND striker Wayne Rooney
insists he and his team-mates are
getting better at striking the much-
maligned new ball with every day
that goes by.
And the Manchester United star
believes a hitherto low-key tourna-
ment will explode into life as players
gradually acclimatise to the design of
the Adidas Jabulani.
Were starting to get used to it
after about three weeks, said
Rooney. I imagine it must be a night-
mare for goalkeepers but for forward
players its an advantage I feel.
Were getting used to it every day
that goes by. Hopefully thatll help the
forwards and midfielders to score
Picture: PA more goals in the tournament.
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