BUSINESS WITH PERSONALITY
TOP FIRMS UNVEIL RAFT
Issue 1,188 Friday 30 July 2010
FSA PAY RULES TO
HURT THOUSANDS
REGULATION
▲
BY OLIVER SHAH
LONDON and Europe will lose out to
other financial centres if tough rules
on pay are rushed in, City figures
warned as the UK watchdog revealed
plans to curb bonuses yesterday.
Fears were stoked after the
Financial Services Authority (FSA) said
it would update its remuneration
code to match harsh measures put
forward by the European Union in
time for January. Hedge funds, asset
managers, building societies, stock-
brokers and many others will be
caught in the crackdown as the regu-
lator widens the scope of its powers
on pay from 26 key banks to more
than 2,500 financial companies.
In a set of proposals designed to
stop “rewards for failure”, the FSA,
led by Hector Sants, said:
• at least 40 per cent of bonuses
paid to certain “code” staff will have
to be deferred over three years;
• a minimum of 60 per cent will
have to be deferred when a bonus
exceeds £500,000;
• half of any deferred portion will
need to be paid in shares or non-cash
instruments;
• guaranteed bonuses of more
than one year will be banned apart
from in “exceptional circumstances”;
• large financial groups will have
to set up remuneration committees
to look at risk and incentivisation;
FTSE 100 ▼ 5,313.95 -5.73 DOW ▼ 10,467.16 -30.72
OF BUMPER RESULTS
UK PLC BOUNCES BACK
P 7, 9, 11, 13, 14, 17, 18, 19
www.cityam.com
FSA boss Hector Sants wants to implement the crackdown by 1 January, while BBA chief Angela Knight (inset) urges caution
• and employees will be forbidden by promising to be fair and propor-
from using personal hedging strate- tionate in finalising the pay code. It
gies or alternative vehicles to get also recognised that “firms currently
around the rules. within the scope of the code have
Calling for an overhaul of risk and expressed concerns about losing their
reward culture at “the very top levels staff to competitors outside the scope
of management”, the FSA launched a of the code”.
consultation ending 8 October. It But industry insiders said the FSA
aims to firm up the policy by and EU’s timetables were too short.
November and bring in the changes Angela Knight of the British Bankers’
by 1 January. Association said: “The issue that con-
The regulator tried to soothe jitters cerns us is the industry is much
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broader than EU-wide. The worry is
always that if regions are going to dif-
ferent timetables, the one that does it
last becomes a magnet for business.”
Tom Gosling
PricewaterhouseCoopers said smaller
firms could be put at a disadvantage:
“There is a danger of a two-tier system
emerging, between large and small
banks, the individuals within them
and also between EU and non-EU
players.” ALLISTER HEATH: P2
£/¤ ▼ 1.19 -0.01 ¤/$ ▼1.30 -0.01
▲
MARKETS
BY OLIVER SHAH
INVESTORS cheered a string of strong
quarterly results from UK companies
yesterday. Shell nearly doubled profits
to £2.9bn, AstraZeneca pledged
increased share buy-backs, BT reported
a six per cent rise in earnings, BAE
Systems expected revenue growth and
Trinity Mirror said first-half sales leapt.
Despite the good news the FTSE 100
closed down 5.73 points at 5,313.95.
FREE
Coalition in
big welfare
shake-up
▲
POLITICS
BY DAVID CROW
IAIN Duncan Smith, the work and
pensions secretary, will today unveil
plans to scrap all out-of-work benefits
and replace them with a single pay-
ment, in what will be billed as the
biggest welfare shake-up in decades.
A so-called “universal credit” will
replace the myriad of different bene-
fits that are currently available,
including housing benefit, jobseek-
ers’ allowance and income support.
Crucially, the credit will also be
available to those working in low
income jobs, to ensure they don’t lose
out when they move off of benefits
and into employment.
Duncan Smith is expected to say:
“For many people, taking a job leaves
them no better off than a life on ben-
efits, and this has trapped significant
parts of our society in inter genera-
tional worklessness and entrenched
poverty.
“The complexity of the system also
creates risk and uncertainty for the
people in society who most need sta-
bility. We want to simplify the system
to make it clear that work will always
pay.”
The proposals will be unveiled in a
command paper entitled 21st
at Century Welfare. It will outline plans
to combine the benefits and tax cred-
its systems; combine out-of-work and
in-work benefits into a single system;
and introduce a series of supplemen-
tary payments for the most needy,
such as the disabled.
RETIREMENT AGE SCRAPPED: P4
Certified Distribution
31/05/10 till 04/07/10 is 103,725
 2 News
Flawed logic at heart of bonus rules
EDITOR’S LETTER
ALLISTER HEATH
JUST a few years ago, it would have
been unthinkable that governments
would seek to regulate the way
employees were paid by private firms.
The recession changed all of this: it
soon became the received wisdom
that large banks deemed “too large to
fail” should have their pay policies reg-
ulated by the state to make sure they
don’t encourage staff to take large
risks which could jeopardize the eco-
nomic system. Yesterday, the authori-
ties signalled a further extension of
their powers with the FSA’s announce-
ment that the number of firms affect-
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
LI KA-SHING PAYS £5.8BN FOR UK
UTILITY
EDF of France is set to sell its UK elec-
tricity networks business to Cheung
Kong Infrastructure of Hong Kong for
£5.8bn, 45 per cent more than the
price originally suggested for the
deal, according to a person close to
the negotiations.
The state-controlled French electricity
group is expected to announce the
sale with its half-year results on
Friday morning. The deal at a stroke
reaches the €5bn target the French
utility set for disposals by the end of
2011.
US BANKS IN RUSH FOR CHEAP
FINANCE
US banks are taking advantage of
improving earnings and growing
investor demand to raise billions of
dollars in debt at historically low
interest rates, a move that could boost
ed by the pay rules will jump from 27
to 2,500, including stockbrokers, asset
managers, hedge funds and others.
The FSA is playing catch-up: it is imple-
menting directives laid down in
Brussels. Bonuses are not being
capped – but many employees will see
40-60 per cent of their compensation
deferred over three year periods and
paid out in equity or equity-like instru-
ments.
It makes sense for pay policy to be
reformed, of course, and for compa-
nies to align their interests with those
of their staff. Some firms did incen-
tivise some of their staff – especially
those with a sales role – to behave in
excessively exuberant ways; it is good
that the largest institutions have
cracked down on this. Yet to acknowl-
edge the need for reform does not
mean accepting that the best way for-
ward is for the government to step in.
Three points were never answered
adequately by supporters of regula-
tion: first, why – given that everybody
has learnt at least some lessons from
EU in push for market clarity
REGULATION
▲
BY HARRY BANKS
EUROPEAN Union regulators pro-
posed radical changes in the way the
region’s securities markets operate
yesterday so that investors have a
complete snapshot of prices currently
fragmented by fierce competition.
Heavy lobbying by bourses for their
new rivals to face the same tough
rules as themselves appears to have
paid off. In-house trading by big
banks also face tougher rules.
The EU’s executive European
Commission is reviewing the Markets
in Financial Instruments directive
(MiFID), a set of EU rules introduced
in 2007.
The Committee of European
Securities Regulators (CESR) is advis-
ing the Commission on drafting
amendments to MiFID and has rec-
ommended major changes that will
change business models of stock
exchanges, brokers, banks and new
trading venues.
One key recommendation is the
mandatory creation of a consolidated
the sector’s profits in coming years.
The burst of fundraising in the US is
in stark contrast to Europe where
banks have struggled to issue debt as
the Eurozone crisis and worries about
the financial industry have under-
mined market confidence.
EUROPEAN BUSINESS RECOVERY
A number of Europe’s leading compa-
nies reported stronger-than-expected
earnings on Thursday, underlining
the strength of the corporate recovery
across the continent.
Heavyweight names such as Siemens,
Royal Dutch Shell, Volkswagen and
BASF all saw their second-quarter
profits beat analysts’ forecasts consid-
erably. “It’s another good set of
results,” said Adrian Cattley, equity
strategist at Citigroup speaking yes-
terday. “It is important not to confuse
[gross domestic product] with stock
markets. Just because European GDP
is poor doesn’t mean that European
corporate profitability should be
poor.”
the crisis – would chastened share-
holders not force firms to make sure
that pay policies were sufficiently
long-termist? After all, the bonus rules
are meant to protect shareholders
against their own staff, in a bizarre
form of reverse Marxist logic. Second,
if short-termist bonus policies were so
important in fuelling the bubble, why
is there no robust academic evidence
that demonstrates this? Why are seri-
ous academics more concerned with
other factors, such as low interest
rates, faulty capital adequacy or incor-
rect mathematical models? Third,
how come Lehman, AIG and other
flawed firms actually paid a large pro-
portion of their bonuses in shares? For
some reason, what now passes as best
practice didn’t save them.
I’m not the only sceptic: at last
September’s Mansion House speech,
Lord Turner, the FSA’s chairman,
pointed out that “it is possible to over-
state the importance of bonus struc-
tures in the origins of the crisis: they
were, I believe, much less important
“tape” or “pipe” that contains all the
prices from share trades across the
whole market to give investors a com-
prehensive view.
The recommendations include les-
sons from the financial crisis on the
need for more transparency and the
demands on regulators to keep up
with big advances in trading technol-
ogy.
However, regulators have made no
proposals on high-frequency trading
or ultra-fast computer-aided trading
that has come to represent a major
chunk of volumes on exchanges.
CESR is due to become a more pow-
erful pan-EU markets authority from
next year and wants specific powers
to issue binding guidelines to regu-
late any change in trading technolo-
gy.
FSA director and CESR
rules co-author Sally
Dewar says the new
rules will deliver “major
transparency benefits.”
GOLDMAN SACHS CLAMPS DOWN ON
OFFENSIVE E-MAILS
Goldman Sachs has tightened its
supervision of employees’ e-mails in
an effort to ensure that embarrassing
messages never again escape the
walls of the investment bank. At a
recent meeting in London, staff were
told that Goldman had changed the
search parameters on the system
used to monitor incoming and outgo-
ing e-mails.
UK TAKES DELIVERY OF LIGHTER,
LEANER KINDLE
Amazon has launched a new version
of its Kindle e-reader at a knock-down
price of £109 and will sell the device
directly to UK customers for the first
time. The Kindle had previously been
available on Amazon’s US website
which meant that, including import
taxes, early adopters had to stump up
more than £200 to buy the e-reader.
than huge failures in capital adequacy
and liquidity regulation.” Needless to
say, nobody listened, not even
Turner’s own FSA.
There is a big difference between
arguing that a few systemically impor-
tant banks should have their pay regu-
lated and saying that all financial
institutions should face the same
rules, even if they are too small to pose
a risk to the economy. This massive
extension of the state’s power to regu-
late private contracts is therefore
unnecessary, wrong and counter-pro-
ductive. The new rules will merely
guarantee less wealth and prosperity
for London. Over time, activity will
migrate to Asia, to the Middle East, to
Switzerland and even to the US. The
rest of the EU doesn’t care; as far as
Paris and Berlin are concerned,
London deserves to suffer. But the
coalition government should have
stood up for the City; it beggars belief
that it has not done more to protect
London’s competitiveness and jobs.
allister.heath@cityam.com
MIFID REVISED | THE NEW PROPOSALS AT A GLANCE
● New trading facilities spawned by
MiFID to be treated like exchanges, a
step bourses have lobbied hard for.
● Best execution rules improved though
Portugal wanted more radical change to
link all trading venues.
● Extending MiFID’s transparency rules
from shares to similar instruments like
deposit receipts, exchange-traded funds
and certificates.
● Investors should not be forced to buy
huge wads of bundled data but have the
choice to buy subsets, a step exchanges
may resist as data is a key moneyspinner
for the.
● Volumes at in-house share trading net-
works at big banks will be limited,
beyond which they must become a for-
mally regulated market with all the
transparency rules that entails. CESR is
eyeing whether a five per cent threshold
used in the US is suitable for the EU too.
● MiFID’s post-trade transparency rules
HSBC GETS BULLISH ON RUSSIA
HSBC is plunging headlong into
Russian equities as it makes the
world's biggest bet on the rising mid-
dle classes of Asia, Latin America, and
the commodity bloc.
“Russia is our favourite,” said Nick
Timberlake, HSBC’s emerging mar-
kets chief. “We’re being offered a huge
opportunity. It is not quite as good as
it was after Russia’s debt default in
1998, but it's excellent value.”
CHINA BLOCKS GOOGLE AGAIN
Google’s internet search services were
last night blocked in mainland China
just three weeks after a denouement
between the technology giant and the
secretive superpower appeared to
have been reached. Google’s regular
monitoring of its operations in the
country revealed last night that its
search services had been fully blocked
in the region.
CITYA.M. 30 JULY 2010
Moody’s profits
beat Wall St
expectations
▲
FINANCIAL SERVICES
MOODY’S posted better-than-expected
second quarter profit as demand for
debt ratings picked up.
Earnings rose to $121m (£77m)
from $109.3m yesterday, while rev-
enue of $477.8m, down from the first
quarter but up six per cent from a
year earlier.
The rating agency was cautious
about the outlook for its business,
which faces a tough second half as
debt issuance slows and costs associ-
ated with new financial regulation
increase. But Moody’s reported a big-
ger jump in revenue than Standard &
Poor’s. Regulatory changes now
threaten to cut into their businesses.
Under new financial reform, ratings
agencies can be sued if they “reckless-
ly” fail to review information in a rat-
ing.
should in future be applied to cover most
of the bonds trading sector, sovereign as
well as corporate.
● Industry-wide mandatory taping of
voice communications handling share
orders, a step Germany opposed.
● MiFID’s post-trade transparency
regime should also apply to structured
finance products and cover all asset-
backed securities and collateralised debt
obligations for which a prospectus has
been issued.
● All credit default swap contracts, cor-
porate or sovereign, should come under
MiFID’s transparency regime if they are
eligible for clearing.
● A harmonised post-trade transparency
regime for over-the-counter (off-
exchange) derivatives should be devel-
oped quickly.
● A compulsory pre-trade transparency
regime should be required for all non-
equity instruments traded on exchanges.
YEN PULLS NINTENDO TO A LOSS
Nintendo yesterday reported its first
quarterly loss in more than two years,
as Japan’s strong currency and a lack
of major new products further
pinched the videogame maker.
Its weak fiscal-first-quarter results are
the latest sign that the high yen is
weighing on Japanese exporters by
canceling out the benefits of their
cost-cutting and recovering demand.
Overseas markets accounted for 87
per cent of the Japanese game con-
sole maker’s group revenue for the
three-month period ended in June.
TOYOTA RECALLS 480,000 VEHICLES
FOR STEERING FIX
Japanese carmaker Toyota Motor is
recalling about 480,000 vehicles
around the world, mostly Avalon
large sedans in the U.S., for steering-
system flaws that could develop over
time and lead to a loss of control.
CITYA.M. 30 JULY 2010
Citi pays SEC
$75m to clear
subprime case
BANKING
▲
BY EMMA SADOWSKI
CITIGROUP will pay $75m (£48m) to
settle charges that it failed to disclose
subprime exposure to investors in
2007, the US Securities and Exchange
Commission (SEC) said last night.
The SEC also charged former chief
financial officer Gary Crittenden and
Arthur Tildesley Jr, Citigroup’s for-
mer head of investor relations and
current head of cross-marketing,
making the officials among the few
to face charges in the financial crisis.
The pair agreed to pay a total of
$180,000 to settle charges of con-
tributing to misleading statements
about the bank’s subprime exposure.
The bank understated its exposure by
about $40bn, the SEC said.
The SEC charged Citigroup with
Clapham House
shares rocket
on bid approach
▲
LEISURE
BRITISH restaurant operator Clapham
House said yesterday it received an
offer approach, sending its shares up
as much as 27 per cent.
The owner of Gourmet Burger
Kitchen and the Real Greek said there
was no certainty that an offer would
be made.
The company, which operates 73
restaurants across the UK and 15
internationally, declined to comment
further about the approach.
Clapham reported a 50 per cent
rise in full-year pretax profit.
material omission of disclosure
requirements.
Under the settlement, the bank did
not admit or deny the allegations.
The SEC has asked a federal judge to
approve the settlement.
Citigroup said the bank was
pleased that it had reached an agree-
ment with the SEC.
ANALYSIS l Citigroup
4.6 $
4.4
4.2
4.0
3.8
3.6
3.4
3 May 21 May 11 Jun 1 Jul
TalkTalk gets tie-up
deal with Vodafone
TELECOMMUNICATIONS
MOBILE provider TalkTalk has
penned a deal with Vodafone unveil-
ing a new mobile phone service tar-
geting existing broadband
customers under its own name.
Vodafone and TalkTalk are expect-
ed to report the deal this morning,
which is likely to add further compe-
tition to the mobile phone market.
Under the agreement, TalkTalk will
use Vodafone’s network to launch the
service by targeting customers that
already subscribe to its broadband
and phone services at home.
FED PRESIDENTS CLASH OVER POLICY
4.11
29 Jul
US FEDERAL Reserve officials have clashed over whether the bank should be more aggres-
sive in supporting the economy. St. Louis Federal Reserve Bank president James Bullard (l),
a voter on the Fed’s policy-setting panel, said the central bank should be ready to smore
aggressively pump credit into the financial system to get the economy going. But Dallas
22 Jul Fed president Richard Fisher (r) argued further accommodation would have little effect.
The telecoms group is likely to
offer cheaper monthly contracts to
customers, adding both to the servic-
es it provides and to pricing competi-
tion in the sector generally.
Vodafone won the contract over a
number of bidders, making this a
noteworthy deal for the UK compa-
ny.
The deal will put Vodafone and
TalkTalk in line with rival Virgin
Media, which is the only provider
that offers home phone, mobile, TV
and broadband packaged services.
Neither Vodafone or TalkTalk
would comment last night.
BP in Venezuelan asset
sale talks with Russian JV
BP IN CRISIS
BY EMMA SADOWSKI
BP IS currently negotiating a deal
that could see it sell off some of its
Venezuelan assets to joint venture
partner TNK-BP.
The Russian group, which is split
between BP and a consortium of oli-
garchs known as AAR, is considering
the South American purchase in a bid
to pursue plans to expand interna-
tionally.
Analysts estimate the sale to be
worth $850m and TNK-BP said that it
was actively evaluating the opportu-
nity to invest in the assets.
News 3
NEWS | IN BRIEF
US plans offshore drilling vote
The US Senate is planning to hold a pro-
cedural vote next Wednesday to test
whether there is enough support to pass
legislation clamping down on offshore
oil drilling procedures and expanding
alternative energy. If Democrats cannot
get the necessary 60 out of 100 votes in
favor of debating the legislation, they
are likely to put off further action until
at least mid-September.
KNOC to finalise Dana bid loans
Korea National Oil Corporation (KNOC)
is one step closer to setting up the loans
it needs to put in a £1.7bn bid for Dana
Petroleum. The South Korean state
owned oil company already has letters
of commitment a consortium of banks,
which it plans to deliver to Dana’s advis-
ers as early as tomorrow, it is under-
stood. Under UK law, the loan is required
before KNOC can make a firm offer,
while Dana said last week that talks
could not go through until it had
received assurances that KNOC could
finance the offer.
Sony bounces back in to the black
Sony said yesterday it had returned to
the black in the fiscal first quarter due
to sales of televisions, PlayStation 3 con-
soles and computers, as other Japanese
makers followed suit. Sony also revised
its annual profit forecast by 20 per cent
to 60bn yen in the year ending March
2011, despite worries about the yen's
strength.
The sale is part of a plan by BP to
dispose of up to $30bn in assets over
the next 18 months as it attempts to
offset some of the costs related to the
Gulf of Mexico oil spill, now as high
as $32.2bn.
BP is also lining up a number of
potential sales in Columbia, Vietnam
and Pakistan to not only help pay for
the disaster, but to also meet its inten-
tions to become a smaller and leaner
company.
It has already agreed a $7bn deal
with US rival Apache and could sell
off a further $500m in African retail
assets. It is understood that India’s
Reliance and the Essar Group are
interested in making an offer.
 4 Focus on retirement age
BUSINESS VIEWS: WHAT DO YOU THINK ABOUT THE GOVERNMENT’S
DECISION TO SCRAP THE DEFAULT RETIREMENT AGE?
JOHN CRIDLAND |
“ “
CBI
A default retirement age (DRA)
helps staff think about when it is right to
retire, and also enables employers to plan
more confidently for the future. In certain
jobs, especially physically demanding ones,
” ”
working beyond 65 is not going to be possi-
ble for everyone.”
CHRIS GORMAN | FORUM OF PRIVATE BUSINESS
“ If the default retirement age is scrapped, business owners will be forced to keep on workers past the
age of 65, whether they want to or not. This will prove a huge problem for thousands of small firms, hampering
their abilities to plan for the future.
GRAEME LEACH |
INSTITUTE OF DIRECTORS
We greatly regret the government’s
decision to abolish the DRA. We do not see
how the removal of a mechanism that gives
employers flexibility in managing their work-
force is compatible with the government’s
stated desire to boost enterprise and de-reg-
ulate the employment arena.
”
Work and pensions secretary Iain Duncan Smith authored the plans
Firms hit out
at retirement
age proposals
▲
POLITICS
BY DAVID CROW
BUSINESS groups yesterday rounded
on plans to scrap the default retire-
ment age (DRA), accusing the govern-
ment of rushing the proposals
through without proper consultation.
From next October, firms will be
unable to automatically lay off staff
when they reach 65, allowing millions
to work into their 70s and 80s.
The DRA will be scrapped in
October but the effects will be felt
from April onwards, as employers
must give six months’ notice to staff
they want to retire.
Unions and charities representing
the elderly welcomed the move, but
businesses reacted angrily.
Employers’ group the CBI said the
timetable had given firms little
chance to prepare for the changes.
“Scrapping the DRA will leave a vac-
uum, and raise a large number of
DEFAULT RETIREMENT AGE
Q. WILL FIRMS STILL BE ABLE TO GET
RID OF STAFF THAT ARE “TOO
OLD”?
A. It will be much, much harder.
Companies will have to begin a
performance management process to
prove that a member of staff is no
longer able to carry out their duties
effectively. Even if they can prove that
an employee is underperforming,
they will have to give them ample
opportunity to try and improve,
potentially delaying the point at
which they can terminate employ-
ment by months or even years.
Q. CAN AN EMPLOYEE APPEAL
AGAINST DISMISSAL?
A. Disgruntled employees will be
able to take their employer to tri-
bunal if they think they are still per-
forming adequately in their job. The
CITYA.M. 30 JULY 2010
Picture: REX
complex legal and employment ques-
tions, which the government has not
yet addressed,” said CBI deputy direc-
tor-general John Cridland.
And the Institute of Directors (IoD)
hit out at the government, pointing
out it came to power on a promise of
cutting red tape for businesses.
Graeme Leach, director of policy at
the IoD, said: “The coalition agree-
ment states... no new regulation is
brought in without other regulation
being cut by a greater amount. So
where are the announcements outlin-
ing the regulations to be cut?”
And Adam Marshall, director of
Policy at the British Chambers of
Commerce said the plans would
restrict businesses’ ability to manage
their workforce.
Audrey Williams, a partner at
Eversheds, warned younger employ-
ees would become disgruntled, as the
policy could cause a dearth of promo-
tion opportunities.
employer will not
only have to prove
they were right to dis-
Q&A
miss the staff member on perform-
ance grounds, but also that they are
being even-handed across the work-
force. Otherwise they could stand
open to accusations of age discrimi-
nation.
Q. CAN A FIRM INTRODUCE ITS OWN
COMPULSORY RETIREMENT AGE?
A. In theory, yes, but it will be very,
very difficult. Firms would have
to prove that there was a good reason
for a compulsory retirement age that
applied across all types of roles in the
business. Although likely to be very
costly, most firms will probably want
to go down the route of dismissing
employees for performance-related
reasons.
CITYA.M. 30 JULY 2010 News 5

McAfee results
Eurozone pain trump Wall
Street’s target
eases profits TECHNOLOGY

▲
at Santander MCAFEE, the security software
maker, reported better-than-expected
profit yesterday, lifted by growth in
its consumer business.
The company reported net earn-
ings for the second quarter of $39.4m
(£25.2m) up from $28.7m last year.
Revenue rose four per cent to
per cent to €1.01bn.
▲

BANKING $489.2m, while non-GAAP revenue

BY VICTORIA BATES Santander, which is in exclusive Moore Capital boss Louis Bacon (right) with wife Gabrielle Sacconaghi Picture: GETTY came in at $495.3m. Wall Street was
talks to buy over 300 branches from targeting sales of $507.4m.

Moore Capital follows

SPANISH banking giant Santander the Royal Bank of Scotland, con- The company’s consumer business
yesterday unveiled a year-on-year fall firmed yesterday it would add 600 grew eight per cent, while the corpo-
in first-half profits, stung by a weak new jobs in the UK on the back of the rate business rose five per cent.
performance in the crisis-hit strong performance. Growth in North America and Asia-

rivals to open Swiss unit

Eurozone and another hike in the
amount it put aside to cover bad
loans.
Net attributable profit over the
first six months of the year slumped
1.6 per cent to €4.45bn (£3.73bn),
dragged down by a six per cent fall in
António Horta-Osario, the chief Pacific was strong, while sales in
executive of Santander’s UK opera- Europe fell slightly.
tions, said: “We have had growth McAfee forecast earnings for the
across all areas of the business, current quarter, excluding items, of
demonstrating that our transforma- $505m to $520m.
tion into a full-service commercial Shares rose less than one per cent
bank is progressing successfully.” HEDGE FUNDS Switzerland offers an attractive pack- to $30.50 in extended trading.
▲

income from continental Europe. The group said that the UK has BY OLIVER SHAH age in terms of work-life balance as
Provisions for bad loans, which now caught up with its home market, well as earnings. ANALYSIS l McAfee
have started to ease at many of the Spain, in terms of balance sheet MOORE CAPITAL, the New York-based Moore Capital, which is run by the 40 $
bank’s global peers, rose again by six share, with both contributing 33 per hedge fund, has become the latest flamboyant Louis Bacon and man-
per cent to €4.92bn, though cent of loans and 31 per cent of cus- alternative investment manager to ages an estimated $15bn (£9.6bn), fol-
38 30.25
29 Jul
Santander insisted that the rate of tomer funds. set up an office in Switzerland. lows in the footsteps of other funds. 36
increase had slowed sharply. Santander now has over 1,300 Moore Capital has opened a branch Last month, Brevan Howard Asset
However, in the UK – where branches in the UK, a tally which in Zürich to give its partners the Management co-founder Alan 34
Santander has been on a buying spree would be boosted significantly if a option of working in a low-tax envi- Howard moved to the firm’s newly 32
over the past few years, snapping up deal with RBS is announced, as ronment. Portfolio manager opened office in Geneva, joining two
Abbey, Alliance & Leicester and expected, within days. It employs over Kornelius Klobucar has moved from other traders. 30
branches of Bradford & Bingley – the 22,800 people in the UK, out of a London to lead the team. A Moore Capital spokesman con-
28
bank saw attributable profit soar 14 group workforce of 170,264. The investment firm believes firmed the move to City A.M. 3 May 21 May 11 Jun 1 Jul 22 Jul
A Daimler Brand

One day. Could be tomorrow.

The C-Class.
Visit www.mercedes-benz.co.uk/today

The C180 K BlueEFFICIENCY Executive SE Saloon with Metallic Paint

Monthly payment* £299 Retailer deposit contribution** £1,335.52 On-the-road price £25,300 Total amount payable by the customer‡ £26,763
Customer deposit £3,699 Optional purchase payment† £12,025 Total charge for credit £2,798.52 Total amount payable‡ £28,098.52
Number of payments 36 Acceptance fee £180 Amount of credit £20,265.48 Purchase activation fee† £95

Typical 5.9 % APR

Official government fuel consumption figures in MPG (Litres per 100km) for the C180 K BlueEFFICIENCY Executive SE Saloon with manual transmission: Urban: 32.8 (8.6), Extra Urban: 54.3
(5.2), Combined: 43.5 (6.5). CO2 emissions: 154 g/km. Model shown is a Mercedes-Benz C180 K BlueEFFICIENCY Executive SE Saloon manual with optional metallic paint at £630.00. Total price: £25,300.00 on-the-road (price includes VAT, delivery, maximum Road
Fund Licence, number plates, new vehicle registration fee and fuel). *Based on a Mercedes-Benz Agility agreement. **The Retailer contribution is only available with this finance offer. †Payable if you exercise the option to purchase the car. ‡Includes optional purchase payment and purchase activation
fee. Example based on 10,000 miles per annum. Excess mileage charges may apply. Guarantees and indemnities may be required. This finance campaign is available for C-Class Saloon models, excluding special request engines, registered between 1st July and 30th September 2010. Offer cannot be
used in conjunction with any other published offer from the Retailer and is subject to availability. Terms and conditions apply. Prices correct at time of going to print. Credit provided subject to status by Mercedes-Benz Financial Services UK Ltd, MK7 8ND.
 6 Telecoms News
Sky smashes expectations
as HD fuels surge in demand
▲
MEDIA
BY STEVE DINNEEN
BSKYB is in touching distance of
achieving 10m subscribers after
announcing it made a net gain of
90,000 customers in the fourth quarter.
In a strong set of results the sub-
scription TV giant announced that
demand for its HD content has surged,
with 429,000 users signing up in the
last three months.
Adjusted revenue for the year was
up 11 per cent to £5.9bn, with pre-tax
profit almost trebling to £1.17bn com-
pared to last year, when the company
booked a loss on its ITV stake. Adjusted
operating profit – excluding a settle-
ment with Electronic Data Systems –
rose 10 per cent to £855m.
In a blow to BT, 20 per cent of Sky’s
customers now subscribe to its “triple
play” package of broadband, TV and
phoneline – a 36 per cent hike year-on-
year.
The broadcaster also announced a
major tie-up with HBO, the US chan-
nel behind hit shows like The Wire, to
screen its output in the UK.
Chief executive Jeremy Darroch
said: “We’ve had another good quarter
to bring our financial year to a strong
close.”
The results do no favours for the
broadcaster’s biggest shareholder
News Corp, which is mulling a multi-
billion-pound bid to take control of the
firm. News Corp, which has a 39 per
cent stake in the firm, last month saw
a bid of 700p-a-share rejected.
This would have valued the firm at
£7.8bn but analysts suggest it may take
closer to 800p a share to tempt Sky’s
board into recommending the offer.
ANALYSIS l BSkyB 711.00
750 29 July
700
650
600
550
19 May 9 Jun 29 Jun 19 Jul
ANALYSIS l BT Group 144.30
145 29 July
140
130
120
110
19 May 9 Jun 29 Jun 19 Jul
BT profit climbs by 17pc
despite tough trading
▲
TELECOMS
BY STEVE DINNEEN
BT shrugged off difficult trading con-
ditions in the wake of government
cuts to match expectations in its first
quarter.
The telecoms giant, which last
month declared war on Sky with its
entry into the lucrative Premier
League subscription market, reported
first quarter revenue of £5bn, down
four per cent on the year before.
However, rigorous cost cutting
pushed core earnings up six per cent
to £1.4bn and profit before tax
jumped 17 per cent to £446m.
It also paid off a portion of its
mammoth debt pile, reducing it by
£1.6bn to £8.9bn.
A tale of two tech titans
BACK in 1989, if you had predicted
that Sky TV would become more
successful than BT, you’d have been
laughed out of the room. Rupert
Murdoch’s Australian chutzpah
was considered no match for the
state monopoly that BT was handed
on a plate, and which it squandered
away over the following years.
You’d have been right though:
BSkyB, the plucky insurgent, is now
worth over £1bn more than BT in
terms of market cap.
Nor are things likely to change
any time soon, if at all. Revenue at
Global Services (GS), the one-time
engine room of the business that
has become an albatross round its
neck, continues to move south-
CITYA.M. 30 JULY 2010
BT (FIRST QUARTER)
Revenue: £5bn (down 4%)
Adjusted profits: £446m (up 17%)
Broadband customers added this
quarter: 96,000
Pension deficit reduction:
£2.4bn (from £9bn to £6.6bn)
SKY (FULL YEAR)
Revenue: £5.9bn (up 11%)
Adjusted profits: £855m (up 10%)
Broadband customers added this
quarter: 119,000
Number of additional HD
subscribers this quarter: 429,000
The £9bn blackhole in BT’s pension
scheme has started to shrink, with
the Pension Trust now estimating the
deficit to be around £6.6bn.
The biggest surprise in the results
came from the firm’s free cash-flow,
which is usually down by around
£100m during the first quarter but
shot up to £437m.
Chief executive Ian Livingston
called the results “acceptable”.
Early reports suggest the uptake of
BT’s Premier League football package
has been sluggish, despite the firm
undercutting Sky.
BT continued to invest in its fibre
cable network, which it said hit the
1.5m home milestone this quarter. It
added 96,000 new broadband cus-
tomers through BT Retail.
ward. Public spending cuts won’t
help; Ovum analyst David Maloney
estimates that 23 per cent of GS rev-
enues come from the public sector,
with eight per cent of that at risk
from the impending fiscal squeeze.
Although there are bright spots
on the horizon – including a next
generation super-fast network that
will stand out from the crowd –
there is one unalterable fact: BT’s
profits are only rising because man-
agement is cutting costs faster than
revenues are falling. Such a busi-
ness model is unsustainable.
BOTTOMLINE
Analysis by David Crow
CITYA.M. 30 JULY 2010
European chief executive Matthew Key (l) welcomed the results in the wake of chairman Cesar Alierta’s (r) successful Vivo bid.
Telefonica looks to new buy
Vivo after positive results
TELECOMS
▲
BY STEVE DINNEEN
O2 OWNER Telefonica posted a robust
9.4 per cent rise in first-half profit as
strength abroad offset a weak, but
improving, performance in its native
Spain.
The results were released just
hours after the firm announced it
had completed the long-mooted buy-
out of its joint venture partner in
Telecoms News
Brazilian telecoms firm Vivo for
€7.5bn (£6.3bn). The firm hopes the
deal will bolster revenue streams,
which are slowing in its mature
European markets.
Telefonica posted first-half net prof-
it of €3.78bn, with revenue of
€29.05bn, both slightly ahead of fore-
cast.
The results showed modest signs of
improvement at Telefonica’s reces-
sion-hit Spanish unit, which makes
7
one-third of group revenue.
Revenue at the unit was down 3.2
per cent in the second quarter, hav-
ing fallen 5.7 per cent in the first. The
company managed to keep a lid on
costs and retain more customers as it
fought off cheaper competition.
In Latin America, Telefonica’s rev-
enue was up 10.2 per cent and core
earnings were up 6.1 per cent. The
unit accounts for the bulk of group
revenue.
CITYA.M. 30 JULY 2010
ANALYSIS | Shell and BP second quarter results
$4.5bn
Profit
Asset Sales
$7-8bn
Dividend
Payment
$2.4bn
Costs relating
to the Gulf
of Mexico spill
$56m
Shell trumps
BP by posting
strong profits
▲
ENERGY
BY EMMA SADOWSKI
ROYAL DUTCH SHELL eclipsed rival
BP yesterday after posting second
quarter profits of $4.5bn (£2.9bn)
almost doubling last year’s numbers.
The rise from $2.3bn a year ago
came after the Anglo-Dutch oil giant
underwent a radical year-long
restructuring, which delivered $3.5bn
in savings, and axed around 7,000
jobs. Profits were helped by higher
refining margins than a year earlier,
as well as higher oil and gas prices
than in 2009, when much of the glob-
al economy was still in recession.
Shell’s profits place the company
well ahead of embattled BP, which
reported quarterly losses of $17bn ear-
lier in the week as a result of the dev-
astating Gulf of Mexico oil spill.
Peter Voser, Shell’s chief executive
officer said the company’s perform-
ance was good despite continual chal-
lenging macro economic conditions.
Breathing space for Connaught
after it secures £15m overdraft
▲
PROPERTY
SOCIAL HOUSING maintenance firm
Connaught soothed investors yester-
day with the news it has secured an
additional £15m overdraft facility
and delayed repayments on other
loans.
The company said earlier this week
it was in urgent need of funds to
avoid breaching banking covenants.
Connaught said it will continue
negotiations with banks to secure
long-term financing. Its lenders, led
by RBS, did not respond to requests
for comment yesterday.
Sir Roy Gardner, the firm’s chair-
man, said: “We are delighted by this
News 9
Exxon Mobil tops Wall St as
$17bn
loss output rises eight per cent
Asset Sales
$30bn Oil and gas output in the quarter have improved in recent months,
▲
ENERGY
BY HARRY BANKS rose eight per cent, boosted by the with business and consumer demand
company’s liquefied natural gas proj- for diesel and gasoline rebounding.
EXXON MOBIL reported a better-than- ects in Qatar, Exxon said. Crude oil prices have also climbed
Dividend expected second-quarter profit, with While, Exxon’s refining business roughly 30 per cent from a year ago,
Payment oil prices and margins to process reported a better-than-expected profit another factor that has contributed
crude into fuel rebounding and pro- of $1.22bn in the second quarter, up to higher profits in the second quar-
0 duction rising.
Profits for the US-based group
sharply from $512m from a year earli-
er. Barclays Capital had expected
ter for oil companies.
Shares in Exxon rose to $61.35 in
came to $7.56bn (£4.83bn) in the quar- Exxon’s refining business to report a premarket trading from the previous
Costs relating ter excluding items, compared with profit of $860m. day’s close of $60.91, but fell slightly
to the Gulf $4.09bn a year ago. Conditions in the refining sector to close at $60.52.
of Mexico spill
$32.2bn
Shell, which will pay out a $2.4bn
dividend, revealed plans to sell off up
to $8bn in assets through the course
of next year.
“We will exit from non-core posi-
tions, both in upstream and down-
stream as we refocus our portfolio on
material positions with growth
potential,” said Voser.
However, Shell’s offshore drilling
business in the US was hit by a six-
month moratorium on deep sea
drilling, which the Obama adminis-
tration imposed after the explosion of
the Deepwater Horizon rig on 20
April.
Shell has already taken a $56m hit
as a result of the ban.
“[Shell] will be one of the most
affected by the Gulf BP accident and
subsequent US government drilling
moratorium there...due to its large
operation,” said Christine Tiscareno,
at Standard & Poor’s Equity Research.
Voser said he would consider
reclaiming the money from BP.
tangible evidence of support from
our lenders. We will now seek to put
in place arrangements which will
leave Connaught on a more secure
footing for the longer term.”
The firm is today expected to
receive the results of an independent
enquiry into its accounting policy,
conducted by Deloitte. It requested
the investigation after a profit warn-
ing wiped more than 90 per cent off
the firm’s share value in a month.
The FSA has also made an informal
request for information on the firm’s
disclosure of its financial problems to
the stock market.
Shares closed up 13 per cent at
35.1p yesterday.
 The Capitalist
10
NEW METRO
BANK LURES
IN CANDY
BROTHERS
OFF to the preview party for Metro Bank’s
new Holborn store on Wednesday evening,
where anyone who was anyone gathered
to drink champagne under the gaudy red-
and-blue rafters and gush about the won-
ders of sugar-coated customer service.
Attendees included Meredith Whitney,
the glamorous US banking analyst; Jamie
Reuben, son of property magnate David;
US investor Wilbur Ross – bizarrely
enough, since he has already invested in
Metro’s start-up rival Virgin Money; and
Nick Candy, one half of the smooth-talk-
ing sibling property duo.
Actually, The Capitalist was rather
intrigued to see Candy show up at the
event, and quickly got to talking to one of
the most senior members of Metro’s man-
agement team about the property
mogul’s connection to the bank’s founder
Vernon Hill.
“Why, the Candys have already taken a
stake in Metro,” came the innocent reply.
“I think it was around the same time as
the Reuben brothers invested, actually…”
Now that, if our Metro man has his
facts straight, is what’s known as letting
the cat out of the bag. Candy himself
refused to comment on whether or not a
Christian (l) and Nick Candy are sweet on the Metro Bank idea Pictures: REX, Victoria Bates/City A.M.
final deal has been struck, though he
admitted the brothers have been mulling
taking a stake in the bank for a while.
Watch this space.
AIRBORNE DEVIL
The Capitalist didn’t have Icap boss Michael the head of dealing over at WH
Spencer down as an adrenaline junkie,
but it looks like he can be a true daredevil
in his spare time.
Spencer was at the Farnborough Air
Show last week, where the Blades – an air
acrobatics troupe like the Red Arrows –
were opening the show. As something of
an aeroplane fanatic, the former Tory
party treasurer jumped at the chance to
go up with a Blades pilot after their offi-
CITYA.M. 30 JULY 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
“If our Metro
man has his
facts straight
about the
Candys’
involvement,
he’s gone and
let the cat out
ing at the likes of the Royal Albert Hall.
of the bag” Guests at the bash yesterday could be
heard guffawing loudly at a printed
poster on the wall (see above), showing
Ames in all the leather-jacketed, big-
haired glory of his singing days.
cial display, where he was subjected to
BLUE ISThe
THE COLOUR
lessons from the recent
loop-the-loops and other aerobatic trick- financial crisis are clearly
ery from a proper front-row seat. filtering down to bank
bosses. The latest in a long
line of firms to crack
BIRTHDAY BOY down on inappropriate or
Many happy returns to Les Ames, incriminating email communica-
tions is the mighty Goldman Sachs
Ireland, who celebrated his big itself, according to the Wall Street
6–0 yesterday at the Hatchet Journal.
pub on Garlick Hill. City chums Apparently, the recent order banning
packed the boozer to pay their the use of expletives on email was passed
respects to Ames, who started out in the down from on high verbally – to
Square Mile at the tender age of 18. avoid any embarrassing leaks,
Mind you, he did have a spell of respite natch – and will be enforced via a
in the middle of those four decades, special screening system.
spending a few years as a professional There’ll be no more exchanges about
singer, starring in musicals and perform- “shitty deals”, then…
CITYA.M. 30 JULY 2010
ANALYSIS l AstraZeneca
3,300 p
3,289.00
3,200 29 Jul
3,100
3,000
2,900
2,800
2,700
10 May 28 May 18 Jun 8 Jul
AstraZeneca boss David Brennan saw sales and profits rise at the drug company
AstraZeneca
profits rise
▲
PHARMACEUTICALS
BY MARION DAKERS
ASTRAZENECA, the UK’s second-
largest drugs company, doubled its
2010 share buyback plan to $2bn
(£1.3bn) yesterday after posting strong
results and clearing several regulato-
ry hurdles in the US.
Pre-tax profit in the second quarter
rose to $6.4bn (£4.1bn) from $5.6bn in
the same period a year ago, on sales
up three per cent at $8.18bn, the firm
said in its quarterly update.
The company upped its earnings
per share forecast for the full-year by
30 cents to $6.65.
Sales of cholesterol drug Crestor
were particularly strong, rising by a
quarter compared with a year earlier.
Last month the firm won a three-year
legal battle in the US to protect the
drug’s patent until 2016.
The company also said it won
approval in the US for its patent on a
potential money-spinner heart drug
Brilinta on Wednesday, giving the
firm a chance to recoup losses pre-
dicted as several other patents expire.
US revenues have already declined
four per cent in the second quarter as
BARCLAYS BANK
ASTRAZENECA employs a slew of
banks to advise on its global finances,
but Barclays has taken the lion’s share
on the firm’s share buyback pro-
gramme.
The bank has plenty of experience
with such deals, having bought back
almost a billion of its own shares
between 1995 and 1997. It continues
to periodically pick off shares from the
News 11
Sanofi-Aventis promises more
takeovers after upbeat results
exceeded forecasts, thanks to tight- as vaccine sales declined.
▲
PHARMACEUTICALS
BY MARION DAKERS ened spending and demand for its Sanofi last week cut its 2010 earn-
diabetes drugs, growth in emerging ings per share forecast to between sta-
FRENCH pharmaceutical firm Sanofi markets and a weaker euro. ble and four per cent lower.
-Aventis pledged discipline in pursu- Business net income rose 7.6 per Meanwhile, Sanofi’s board autho-
ing growth through acquisitions yes- cent to €2.48bn (£2.08bn). Earnings rised a takeover bid of up to $18.7bn
terday, as the drugmaker posted per share climbed eight per cent to (£12bn) for rival Genzyme.
better-than-expected results and €1.90, ahead of predictions of €1.78. The firm refused to comment, but
remained tight-lipped on its expected Sales increased 4.6 per cent to said it hopes to match last year’s
bid for US biotech company €7.78bn even as competition grew record 33 acquisitions. An initial
Genzyme. from generic copies of blood thinner approach is expected by the end of
Sanofi’s second-quarter earnings Plavix and cancer drug Eloxatin, and the week.
28 Jul
cheaper, generic competitors to its
blood pressure, asthma and prostate
cancer drugs flooded the market.
Turnover in emerging markets rose
16 per cent, as the firm shifts its focus
to non-US customers.
David Brennan, chief executive,
told analysts yesterday: “Our emerg-
ing market business is a significant
proportion of our growth, due to the
success of products that are a bit
more mature in the developed mar-
kets.”
Brennan added: “In many emerg-
ing markets, some products have
already lost exclusivity, but of some
markets are planning to give more
exclusivity to new products.”
AstraZeneca said it will double its
planned share buyback programme,
after scrapping an earlier attempt in
2008. The buyback will mean higher
earnings per share and should cush-
ion the firm from future stock mar-
ket volatility.
The firm also announced that Dr
Bruce Burlington will join the board
as a non-executive director from 1
August.
Shares closed three per cent up at
£32.97 yesterday.
stock market as it attempts to con-
centrate the value of existing stock.
Barclays was heavily involved in
AstraZeneca’s bid to buy back shares
in 2008, which was halted due to
market volatility during the credit
crunch but is now going full pelt again.
The banking group has also advised
British American Tobacco on its repur-
chase of two per cent of its total
shares in 2007, and helped Marston
Hotels bring 45 per cent of publicly
traded shares back into the family-run
business for £30m. The latest
AstraZeneca buyback move, on 29
June, left around 1.4bn shares in the
marketplace. At yesterday’s prices,
this values the publicly traded portion
of the pharmaceuticals giant at £46bn.
 12 Economic News
US jobless claims in
a surprise tumble
▲
WORLD ECONOMY
NEW claims for US unemployment
benefits fell unexpectedly last week
to 457,000, down 2.4 per cent from
the previous week, the Labor
Department said.
Jobless claims fell by 11,000 in the
week ending 24 July, down substan-
tially from the 464,000 level expected
by analysts.
The jobless figures were lower, in
Properties are now
selling for less.
Picture:
Micha Theiner
/City A.M.
part, thanks to fewer layoffs at car
plants in Michigan and New York.
While unemployment levels remain
stubbornly high, claims are substan-
tially down from this time last year,
when they hit 578,000.
But according to the figures, some
4,565,000 Americans still asked for
government aid to get by in the week
ending 17 July, up 81,000 versus the
previous week, according to seasonal-
ly adjusted statistics.
House price
fall fuels fear
of double-dip
▲
PROPERTY
BY JESSICA MEAD
FEARS of a sustained double-dip in
Britain’s property market intensified
yesterday after mortgage lender
Nationwide reported that house
prices fell this month for the first
time since February and the Bank of
England revealed that mortgage
approvals dropped to a four-month
low in June.
The latest figures from Nationwide
showed that house prices fell by 0.5
per cent in July, echoing the falls in
the Halifax index over the past three
months. The decline cut the annual
rate of house price inflation to 6.6 per
cent from 8.7 per cent and the aver-
age price of a house to £169,347.
Martin Gahbauer, chief economist
at Nationwide, said: “A combination
of restrictive credit conditions and
uncertainty about the future eco-
nomic outlook continues to limit the
pool of buyers to those with relatively
large financial resources.”
But he warned: “It will take several
more months to establish whether
house prices are now simply oscillat-
ing around a flat price trend or
whether a period of downward trend-
NEWS | IN BRIEF
Retailers recruit more staff
High street retailers employed 22,000
more staff between April and June com-
pared to the same period a year earlier, a
new employment monitor from the
British Retail Consortium will show
today. The increase in employment was
driven by a three per cent net annual
increase in the number of stores in the
second quarter. Retailers’ employment
intentions are generally positive with 58
per cent intending to maintain staffing
levels over the next quarter and a third
planning to increase their staff count.
M4 lending slows in June
THE flow of money to non-financial com-
panies – a gauge of the effectiveness of
the Bank of England’s £200bn asset pur-
chase programme – slowed markedly in
June. M4, excluding intermediate other
financial corporations, rose by just 0.2
per cent on the month, the lowest since
CITYA.M. 30 JULY 2010
ing prices may be in store.”
Tight credit conditions have ham-
pered the property market since the
start of the financial crisis and the
latest figures from the Bank of
England show little sign of a substan-
tial easing in lending.
The Bank of England reported that
mortgage approvals dropped from
49,500 to 47,600 in June, only slightly
above the average during the reces-
sion. Net mortgage lending totalled
just £0.7bn on the month, one of the
lowest outturns in the series’ history.
“Weak mortgage lending, as indi-
cated by today’s data, could go some
way to explaining the weakness we
have seen in the housing market in
recent months,” said Varun Bhabha at
Barclays Capital.
Lucian Cook, director of Savills resi-
dential research, said: “This evidence
all raises the question of price falls in
the second half of the year and seems
to have drawn some of the house
price doomsters back out of the wood-
work. Our view is that house prices
will fall over the next six to nine
months but the extent of those falls is
likely to be capped by the fact that,
for those able to access the market,
mortgage affordability is high.”
January, taking the three-month annu-
alised rate down to six per cent in June
from 8.9 per cent in May. “It’s evident
that the ongoing fall in bank lending to
firms is being influenced significantly by
low corporate demand for credit in addi-
tion to restricted supply,” said Howard
Archer at IHS Global Insight.
Consumer confidence falls again
Consumer confidence fell for the fifth
successive month in July, according to
the latest barometer from GfK NOP pub-
lished today. The overall consumer confi-
dence index dropped three points to -22
with falls in consumers’ expectations for
their personal finances over the next
year, the current general economic situa-
tion and the economy over the next 12
months. But the major purchase index
rose by eight points, perhaps because of
the looming VAT hike, said Nick Moon,
director of GfK NOP Social Research.
CITYA.M. 30 JULY 2010
BAE Systems
stays bullish
despite cuts
s
ENGINEERING
BY MARION DAKERS
BAE SYSTEMS remains bullish in the
face of looming government spend-
ing cuts, after posting a 14 per cent
rise in first-half earnings yesterday to
swing back into profit.
The firm’s chief executive Ian King
said: “The group anticipates a chal-
lenging trading environment as gov-
ernments look for cost savings to
address budgetary pressures and
enhance value for money,” but added
he expects growth during 2010.
The company was looking to
expand in emerging markets to com-
pensate for defence spending cuts in
the UK and US, which make up 70 per
cent of total sales. King said: “If you
look at Brazil, it’s a big economic
powerhouse and it’s looking to spend
money on defence. In terms of
defence spending I would say that it’s
got to be top of the list.”
He said BAE saw unprecedented lev-
els of interest from Middle Eastern
News 13
Rolls Royce to
Net profit Sales Order book raise dividend
£618m s9% £43.6bn after profit rise
six months to June
£10.64
to
bn
down from
£44.3bn
ENGINEERING
s
from
ENGINE and turbine maker Rolls-
£9.76bn Royce reported a stronger than
expected 4.5 per cent rise in first half
profit yesterday, and said a tight lid
on costs had allowed it to raise full-
year forecasts and dividend pay-
ments.
and Asian governments at last week’s The British behemoth posted an
Farnborough airshow. underlying first-half pre-tax profit of
BAE signed a £500m deal with £465m, up from £445m a year ago.
India last Wednesday to supply 57 Revenues climbed 14.7 per cent to
Hawk jets, which came as part of £10.4bn and its order book hit a
Prime Minister David Cameron’s dele- record £58.3bn.
gation to the country. However, its The world’s second-largest maker
order book now stood at £43.6bn, of aircraft engines increased the final
down £700m on last year. dividend payment by five per cent to
Europe’s largest arms firm posted 9p a share but said it expected the
underlying earnings of £1.11bn, on short-term trading environment to
sales nine per cent higher at remain difficult in civil aerospace.
£10.64bn, for the six months to the Chief executive Sir John Rose said:
end of June. “Rolls-Royce has delivered a solid set
The firm cut of results despite difficult trading
ANALYSIS l BAE Systems conditions. This demonstrates the
360
350
320.30
70% 3,300 resilience of our business.”
He added: “Our record order book,
the breadth of the portfolio across all
340
29 July of sales come from jobs in the last six four sectors, our strong balance sheet
and the early action we have taken to
330
UK and US markets months as part of a reduce costs will enable us to manage
320
cost-cutting drive short-term difficulties and deliver
long-term growth.” Rolls-Royce said it
310
expected to double its sales over the
next decade, driven by new projects
19 May 9 Jun 29 Jun 19 Jul
such as Boeing’s Dreamliner.
 14 Consumer News CITYA.M. 30 JULY 2010

Rank profit up
PartyGaming TGI FRIDAY’S IN BUYOUT DEAL

as bingo makes
and Bwin set a comeback

to join forces
CONSUMER

▲
BRITISH bingo hall and casino opera-
tor Rank Group reported an increase
in first-half pre-tax profit yesterday as
its Grosvenor Casinos and Mecca
Bingo halls attracted more cus-
tomers.
The company, which operates 35
▲

LEISURE
BY JOHN DUNNE
BRITAIN’S PartyGaming and Austria’s
bwin unveiled a deal yesterday to cre-
ate a £2.1bn online gaming business,
positioning them to profit from any
forthcoming deregulation in the
lucrative US market.
The deal to create the world’s
biggest listed online gaming company
could kickstart a flurry of M&A activ-
ity in a fragmented sector that is seen
as ripe for consolidation because of
opportunities created by the relax-
ation of gambling laws around the
world, according to analysts.
Moves in the United States to over-
turn 2007 legislation that effectively
outlawed the industry gained
momentum when the House
Financial Services Committee voted
to approve a bill which would legalise
and regulate Internet gambling in
the country.
“We’re very excited about the US
opportunity,” PartyGaming chief
executive Jim Ryan said.“It’s tough to
quantify it until we actually see the
form of legislation, but there was a
very positive step made,” he added.
Under the terms of the deal, classi-
fied as a reverse takeover of bwin by
PartyGaming under UK rules, bwin
shareholders will get 12.23 new
PartyGaming shares for each bwin
share, giving them 51.6 per cent of
the new company. The new group
will be listed on the London Stock
Exchange and jointly run by the chief
executives of the companies.
ANALYSIS l PartyGaming
320 p
309.50
280 29 Jul
240
200
10 May 28 May 18 Jun 8 Jul
casinos and 103 bingo halls in Britain,
made a pre-tax profit of £25.1m com-
pared with £24.7m the year before.
Overall customer numbers
increased by 11.9 per cent to more
than 2.5m during the period, with
average spend per visit rising by 1.5
per cent to £22.48p.
Shares rose up to nine per cent,
before closing yesterday 7.1 per cent
higher at 117p, as the group revealed
that its Grosvenor Casinos division
had drawn in more than one million
customers for the first time.
The group has stepped up spend-
ing to support growth plans with
£50m in capital investment ear-
marked for this year. Chief executive
Ian Burke said: “All of our businesses
have achieved growth in revenue as a
result of increased numbers of cus-
tomers and customer visits.”
RESTAURANT chain TGI Friday’s is poised for UK expansion after hospitality group Rank said it would pay an interim
Carlson bought out its British partner for £60m. Carlson, which already operates TGI in dividend of 0.74p per share, having
the US and across the globe, bought the 60 per stake it did not already own from private not paid one at this stage last year
equity group AAC Capital Partners. Carlson said it is investing $100m (£63.9m) in the because of tough trading conditions,
28 Jul
UK business. Picture: REX in the economic downturn.

Menton [Côte d’Azur]

James Bond movies filmed here ........................... 1

Mégane ................................................ 21

CAN A CAR CHANGE A TOWN? TheMeganeExperiment.com

Data source: James Bond film – Internet Movie Database www.imdb.com. The official
250 are: Urban 24.6 (11.5), Extra Urban 42.2 (6.7), Combined 33.6 (8.4). The offi
 CITYA.M. 30 JULY 2010
Metro Bank
arrives on the
UK high street
▲
BANKING
BY VICTORIA BATES
THE WORLD and his dog queued up
outside Metro Bank’s first branch in
Holborn yesterday morning for the
opening of the UK’s first high street
bank for over a century.
Metro, which freely admits it will
not offer the best rates for savers, is
counting on a dedicated customer
service and convenience-based
approach to lure consumers into its
stores.
If the strategy goes to plan – as it
did over the past three decades with
billionaire founder Vernon Hill’s
Commerce Bank venture, now one of
the biggest retail banks in the US –
the bank is aiming for an ambitious
target of between five and 10 per cent
of the UK retail banking market with-
in the next decade.
First, it will attempt to break the
London market by offering branch
banking services seven days a week
from early in the morning until late,
as well as personalised touches like
Gisburn [Lancashire]
James Bond movies filmed here ........................... 0
Mégane ................................................. 0
fuel consumption figures in mpg (l/100km) for the Mégane Coupé Renaultsport
cial CO2 emission figure is 195g/km.
News 15
Metro Bank was set
up by chairman
Anthony Thomson,
pictured, and US
banking grandee
Vernon Hill
Picture:
Micha Theiner
/City A.M.
CITY VIEWS: DO YOU THINK NEW START-UP BANKS HAVE A CHANCE OF
customer toilets, no-commission SHAKING UP THE HIGH STREET? Interviews by Emma Sadowski
change machines and a much-vaunt-
ed plan to allow dogs to come with
their owners into the stores.
The bank also claims to allow peo-
ANDREW FRANCIS | MUNICH RE
ple to open accounts in as little as 15
minutes, printing debit and credit “The new start-ups are not likely to take major market share, but they probably will see an
cards in-store which are ready to use
as soon as the customer walks out of increase in customers who will move for customer service reasons because the big banks are
the door. lacking in that area. I doubt people will move because the start-ups have better rates.”
However, analysts yesterday
remained sceptical on whether the
bank’s touchy-feely approach to cus- CAROLYN BEGG | HISCOX
tomer service would be enough to
convince level-headed customers to
make the move over from their cur- “Generally people will stay with the big banks because they are much more secure than the
rent bank, particularly given Metro’s
uncompetitive savings rates.
smaller start-ups. At the end of the day, people will remain loyal to a bank if they’ve used it for
Metro plans to open four stores in a number of years because they’ve built up interest.”
London before the end of the year,
with a further eight to come in 2011.
“People’s lives have changed, great RICHARD HAYWARD | MITSUI SUMITOMO INSURANCE GROUP
retailers have moved with them and
banking should reflect that,” said
chief executive Craig Donaldson. “A lot of people are disillusioned with the high street banks after the credit crunch, especially
He added: “Metro Bank is going to because overdraft fees are so ridiculous. But I also think that people can’t be bothered to
change the face of UK banking for
good.” switch to a start-up bank.”
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CITYA.M. 30 JULY 2010
Collins Stewart’s profits climb
▲
FINANCIAL SERVICES
BY VICTORIA BATES
FINANCIAL services group Collins
Stewart continues to tread with cau-
tion in tricky market conditions,
despite receiving a boost over the first
half of the year from its wealth man-
agement and corporate finance divi-
sions.
Collins Stewart said yesterday that
pre-tax profit for the six months to
June rose 6.6 per cent to £6.5m, on
revenues which inched up to £96.1m
from £95.3m in the first half of 2009.
Chief executive Mark Brown said
he was pleased with progress at the
Carmakers in
slow lane as
US sales drag
▲
AUTOMOTIVE
BY HARRY BANKS
A STRONG crop of results from car-
makers Nissan, Hyundai and
Volkswagen yesterday failed to dispel
fears of slowing demand from major
markets such as China and the US.
A patchy recovery in the US is a big
industry concern, in particular for
Japanese carmakers, which rely heavi-
ly on that market for profits.
And in Europe carmakers cheered
by signs that underlying demand was
coming back as scrapping schemes
ground to a halt are now fearful that
austerity measures including tax hikes
in many markets will slow down the
recovery.
Volkswagen, Europe’s largest car-
maker, said it was confident it would
improve sales and margins in the full
year, but warned the strong growth it
saw in the first half “would not contin-
ue undiminished”.
Also in Germany, automotive parts
supplier Continental reiterated its con-
fident outlook after a strong first half.
Andre Lacroix, chief executive of
multinational car dealer Inchcape,
echoed the uncertainty. “We are see-
ing an uneven global recovery: very
strong recovery in Asia-Pacific and
Profits surge at CME as chief executive Repsol closer to listing its
rules out another wave of consolidation Brazilian upstream assets
▲
FINANCIAL MARKETS
BY HARRY BANKS
DERIVATIVES giant CME yesterday
posted higher-than-expected quarterly
profit as heightened volatility in debt
and stock markets boosted trading in
the exchange operator’s futures con-
tracts.
Chief executive Craig Donohue also
said that a recent trading slump will
not spur it into a buying spree. CME
stands to benefit from sweeping US
rule changes that will drive far more
group’s wealth management arm,
which acquired two smaller rivals,
Corazon and Andersen Charnley, over
the period. Assets under manage-
ment grew to £6.8bn at the end of the
six months, more than a third higher
than at the end of the same period in
2009 and a significant step towards
the group’s target of £10bn of assets
under management by 2012.
Revenue at the asset management
division rose 2.7 per cent to £22.6m
over the period. Hawkpoint – Collins
Stewart’s corporate advisory business
– grew its revenue by a third to
£16.7m, boosted by a number of high-
profile mandates, including advising
emerging markets overall, and a bit
more moderate growth in mature
markets,” he said. “This is still a very
volatile market out there and we are
cautious.”
German industrial group Man
returned to profitability in its core
European truck operations in the sec-
ond quarter as promised and forecast
a significant increase in group order
intake for the full year.
Man was the latest in a string of
truckmakers to sound an optimistic
note, showing that the sector is getting
back on its feet after demand for new
trucks halved virtually overnight
when the global economic slowdown
struck. Industry leader Daimler Trucks
has raised its operating profit forecast
twice this year, while Sweden’s Scania
posted a record operating margin of 17
per cent.
Nissan reported its strongest quar-
terly operating profit in more than
two years as sales surged, but it left its
cautious guidance unchanged amid
an increasingly murky outlook for
demand. South Korea’ s top automak-
er, Hyundai, beat forecasts but warned
global car demand will likely ease in
the second half due to a slowdown in
key markets like China, Europe and
the US.
derivatives through exchanges and
clearinghouses.
Although Donohue was quiet on
when exactly it will begin clearing
over-the-counter swaps – seen as key to
the company’s growth – he said there
was no need to catapult expansion
with a big takeover. “We have a very
bullish view of our growth opportuni-
ty organically in our core business,” he
said. “We do not foresee the need for
additional large-scale M&A transac-
tions to drive growth.”
Donohue’s comments mark a
Iceland on its banking restructure.
But the group’s market-related
activities suffered as investors fled on
concerns over a double dip recession.
ANALYSIS l Collins Stewart
95 p
90 74.00
29 Jul
85
80
75
70
65
19 May 28 May 18 Jun 8 Jul
Vivian Imerman with former wife Lisa
Tchenguiz (above) and property tycoons
Robert (left) and Vincent Tchenguiz below.
change in thinking for CME, which
has bought two large exchanges – the
Chicago Board of Trade and the New
York Mercantile Exchange – since 2007.
With those companies now fully inte-
grated, CME will no longer be the driv-
er of consolidation it once was.
The strong second-quarter results
came as trading in CME contracts hit a
record in May, helped by the stock
market “flash crash” and by swings in
interest rate expectations as Europe’s
escalating debt crisis prompted fears
of a global economic slowdown.
Henderson loses appeal
against Patrick Evershed
▲
FUND MANAGEMENT
PATRICK Evershed, the ex-New Star
fund manager who is suing the firm’s
founder John Duffield for unfair dis-
missal, yesterday triumphed in the
Court of Appeal over his former
employer, who had argued that the
case should not fall under whistle-
blowing laws.
Lord Justice Rimer upheld a previ-
ous court decision to grant Evershed
the right to sue under the whistle-
28 Jul blowing act, meaning he could be
Pictures: Alan Davidson,
Micha Theiner/City A.M.
▲
ENERGY
SPAIN’S Repsol is close to choosing to
float part of its reserve-rich Brazilian
upstream assets rather than sell a
stake to finance development of the
oilfields, a company executive said yes-
terday.
The company, one of the largest out-
side investors in Latin America, could
join forces with Brazil state-run oil
group Petrobras – the operator of
many fields where it is present – but is
also prepared to arrange an initial pub-
News 17
entitled to potentially unlimited
damages from New Star’s new owner
Henderson when the case eventually
goes before an employment tribunal.
Evershed claims to have been
unfairly ousted from New Star after
reporting Duffield for staff bullying
to the firm’s head of HR. The case was
first brought in October 2008.
Henderson said yesterday it would
vigorously defend itself at a tribunal.
Duffield, who also formerly found-
ed Jupiter, has since set up a new ven-
ture, Brompton Asset Management.
Tchenguiz
brothers
lose appeal
▲
LEGAL
PROTECTION previously afforded to
thousands of people in divorce pro-
ceedings has been removed following
a landmark Court of Appeal judge-
ment.
Until now a husband or wife who
came across information showing
their partner was hiding money
could copy it, use it and put it before
the courts.
But the court reversed the princi-
ple, intended to help the financially
weak, as part of a bitter multimillion-
pound divorce battle involving Lisa
Tchenguiz, sister of property tycoons
Robert and Vincent Tchenguiz, and
her former husband Vivian Imerman,
who once owned Del Monte Foods.
The judgement ruled that the
financial information downloaded
from Imerman’s computer in secret
by the Tchenguiz brothers to help
their sister’s divorce proceedings was
taken unlawfully and should be hand-
ed back to him.
“This is a victorious day for Mr
Imerman. His documents should not
have been taken,” said his lawyer,
Renato Labi of Hughes Fowler
Carruthers.
Carruthers added: “This is a land-
mark ruling because it overturns
decades of practice in the family
courts which have encouraged spous-
es to secretly obtain, copy and use the
other’s documents in divorce pro-
ceedings.”
lic offering its assets on their own.
“Our initial idea is to go to the mar-
ket with Petrobras but in any case we
plan to IPO by the last quarter of this
year,” said chief operating officer
Miguel Martinez.
Repsol estimates its Brazilian
acreage will provide it with over 170m
barrels of oil equivalent in proven
reserves in five years. The group thinks
a 40 per cent capital increase at its
business in Brazil followed by an IPO
would be enough to fund its five-year,
$5-6bn development plan for the area.
 18 Technology and Media News
Siemens swings back to black Smartphone sales push
TECHNOLOGY
▲
BY STEVE DINNEEN
THE German economy breathed a
sigh of relief after bellweather busi-
ness Siemens stormed back in to the
black with a 40 per cent hike in oper-
ating profit.
The jump to €2.3bn (£1.92bn) beat
even the most optimistic forecasts. In
another positive sign, new orders also
shot up, prompting the firm to
increase its profit guidance for the
second time in 12 months.
The results, which broke a streak of
nearly two years of declining sales,
were flattered by a two year pro-
Reuters profit
drops 8pc as
contracts cut
MEDIA
▲
BY STEVE DINNEEN
THOMSON Reuters saw its quarterly
profit slide eight per cent despite
arresting its free-falling revenue.
Underlying operating profit fell 17
per cent to $655m (£419m) as the
firm struggled to bounce back from
the hammering it suffered in the
wake of the financial meltdown.
The firm was hit by a glut of can-
celled contracts as businesses
stripped back their spending.
Adjusted earnings per share fell to
47 cents from 58 cents a year earlier.
Revenue from ongoing businesses
fell two per cent to $3.22bn but the
firm expects to see a return to rev-
enue growth in the third quarter.
Chief executive Thomas Glocer
said: “Net sales have been positive for
the firm as a whole for three quar-
ters, and increasingly positive
toward the end of the second quar-
ter.”
He added: “Sales have been
encouraging enough that we think
we actually will turn positive before
the fourth quarter.”
The firm’s markets division,
which serves the financial industry,
saw revenue fell four per cent from
Reed Elsevier returns to growth in a Interpublic sees rebound
sign firms are loosening purse strings as the economy improves
MEDIA
▲
BY STEVE DINNEEN
PUBLISHING and events group Reed
Elsevier beat first half forecasts as
underlying revenues returned to
growth after a torrid few years.
The positive results were lifted by
a stabilisation in advertising and
promotions.
The firm’s exhibitions business –
the world’s largest – grew nine per
cent after benefitting from a series
of biennial shows that took place
gramme of swingeing cost cuts which
have stripped €1.2bn from its expen-
diture. The euro’s recent weakness
against key currencies, which makes
Siemens’ exports cheaper to pay for
in foreign currencies, also helped
boost results.
The last time Europe’s number one
engineering conglomerate posted an
increase in both new orders and sales
was in the quarter to the end of
September 2008.
Chief executive Peter Loescher said:
“We see solid growth across all parts
of our businesses, and particularly
strong growth in emerging markets.”
Siemens, which makes everything
the same quarter a year earlier.
Revenue from the division was up
from the first quarter.
Revenue rose two per cent in the
professional division, which sells
databases and other information
reservoirs to lawyers, accountants,
scientists and healthcare workers.
The Reuters news agency business
reported a three per cent fall in rev-
enue, but net sales turned positive
after it won a contract with Time
Warner’s CNN cable news network.
Thomson Reuters said sales of
WestlawNext, a new version of the
company’s Westlaw deep informa-
tion database for lawyers, were well
ahead of expectations, with about
5,700 customers buying the product
since launch in February.
ANALYSIS l Thomson Reuters
$
38.68
40 29 July
39.50
39
38.5
38
37.50
37
36.50
19 May 9 Jun 29 Jun 19 Jul
this year but not last.
Underlying revenue for the six
months rose one per cent to £2.99bn.
Adjusted operating profit fell three
per cent at constant currencies to
£758m.
Scientific and academic publish-
ing division Elsevier, which account-
ed for 42 per cent of the company’s
adjusted operating profit, reported
two per cent revenue growth and a
four per cent increase in profit.
Reed said revenues were flat in its
LexisNexis legal publishing business
from lightbulbs to fast trains, said it
saw a recovery across its businesses,
particularly those more sensitive to
cyclical or economic swings.
ANALYSIS l Siemens
€ expected quarterly results yesterday,
74.42
78 29 July
76
74
72
70
68
17 May 7 Jun 28 Jun 19 Jul
BEST OF THE BROKERS
ANALYSIS l Easyjet
480 p
395.10
29 Jul
460
440
420
400
380
360
10 May 28 May 18 Jun 8 Jul
EASYJET
easyJet revealed strong revenue trends for
the third quarter, according to Royal Bank
of Scotland (RBS), which said it was, how-
ever, lower than expected. Profit guidance
was unchanged as the volcano impact was
confirmed at the top of the range. RBS reit-
erates its “hold” rating, noting operational
instability is leading to incremental costs.
Cost cuts at Trinity Mirror start to pay
off as advertising begins to pick up
MEDIA
▲
NEWSPAPER publisher Trinity Mirror
reported a leap in first-half profits
driven by cost cuts and helped by
improving advertising trends.
The publisher of the Daily Mirror
said national advertising revenue
picked up by 2.2 per cent in the first
half but advertising at its regional
newspapers fell eight per cent as
as legal activity slowed and operat-
ing profit fell 14 per cent as it contin-
ued to invest to regain market share
lost to Thomson Reuters’ Westlaw.
The company said science and
medical journal subscription
renewals were as expected, while the
academic budget environment was
difficult.
Informa and Euromoney have also
reported improving trends for trade
fairs in the last week as companies
begin to loosen travel and sponsor-
ship budgets.
Motorola above forecasts
TELECOMS
▲
MOTOROLA posted stronger-than-
boosting its shares despite frustration
it did not raise its phone sales target.
Investors had hoped the popularity
of Motorola’s Droid X, its latest phone
being championed by Verizon
Wireless, would result in a new, high-
er forecast for 2010 smartphone sales.
Instead, Motorola, which is count-
ing on sales of smartphones based on
Google’s Android software for
ANALYSIS l Centrica
320 p
306.70
29 Jul
310
300
290
280
270
260
28 Jul 10 May 28 May 18 Jun 8 Jul 28 Jul
CENTRICA
JP Morgan Cazenove gives the utility group
an “overweight” rating and raises its target
price to 390p from 385p, noting that its
interim results were 10 per cent ahead of
consensus forecasts. Calculates potential
28 per cent upside from the current share
price. Believes Centrica’s valuation is “unde-
manding” at 12.1 times price to earnings.
To appear in Best of the Brokers email your research to notes@cityam.com
recruitment and property sales
remained weak.
Trinity Mirror said national adver-
tising would be flat in July, with
regionals’ revenue dropping nine per
cent, but said the general trend was
positive.
Total revenue for the six months
was flat at £382.2m. Operating profit
rose 25.7 per cent to £61.7m.
It raised its 2010 cost-savings target
MEDIA
INTERPUBLIC, the world’s fourth
largest advertising company, yester-
day posted a larger-than-expected rise
in quarterly revenue, amid signs that
the ad industry is poised for a
rebound.
The company said net income rose
to $105.3m (£67.4m), or 15 cents a
share, from $20.9m, or four cents a
share, a year earlier.
Revenue for Interpublic, parent to
well-known agencies like McCann-
CITYA.M. 30 JULY 2010
growth, affirmed its previous annual
target.
The stronger-than-expected results,
including a six-fold increase in profit,
helped lift shares of Motorola. The
company is selling its network equip-
ment business this year and plans to
split the rest of the company in two
next year.
In the second quarter, it posted a
profit of $162m (£104m), up from
$26m the year before. Motorola
shipped 8.3m phones in the quarter
including 2.7m smartphones.
ANALYSIS l Ferrovial
6.50
€
6.65
29 Jul
6.00
5.50
5
17 May 31 May 14 Jun 28 Jul
FERROVIAL
Citigroup said that Ferrovial-owned BAA
reported encouraging first half numbers,
despite the closure of Heathrow and
Stansted for five days in April due to the
volcanic ash cloud and the 34 days of
British Airways cabin crew strikes. Citi
gives Ferrovial a “buy” recommendation on
the back of BAA’s numbers.
to £25m from £20m and said it had
achieved £15m of this in the first half.
The company is cutting about 200
jobs at its newspapers.
Earlier this year, Trinity Mirror
took the first step in consolidating
Britain’s regional newspapers, which
have all been devastated by a loss of
classified advertising revenue, by buy-
ing Guardian Media Group’s local
newspapers.
Erickson, rose 9.7 per cent to $1.62bn,
beating estimates of $1.51bn.
Chief executive Michael Roth
attributed the revenue growth to
improved business from both existing
and new clients across many of its
agencies.
“With revenue stability and growth
back in the picture, we feel we are
very much on track to deliver on our
operating margin objective of better
than eight per cent for 2010,” he said.
Shares of Interpublic jumped 7.3
per cent to $8.85 yesterday.
CITYA.M. 30 JULY 2010 News 19

Saint-Gobain sees profits rise Colgate disappoints as its

at the end of June. get for the year to €1.4bn, from the
revenue misses forecasts
▲

INDUSTRIALS
The company, whose glass panels €1bn previously expected.
BY HARRY BANKS were used to build the Louvre Shares in Saint-Gobain, of which
FRANCE’S Saint-Gobain, the world’s Pyramid and London’s Gherkin tower, financial holding company Wendel is exchange, acquisitions and divesti-

largest building materials group,
posted a rise in first-half sales and
operating profit, helped by the
strength of the construction sector in
emerging markets, especially Asia.
Operating profit rose 55.4 per cent
and the group raised its 2010 cash-
flow target.
St Gobain confirmed its target for a
strong rise in operating profit this
year and said operating profit would
be slightly higher in the second half
than the €1.45bn (£1.21bn) reported
reported a 4.3 per cent rise in sales to
€19.53bn in the first six months of
the year, as the construction sector in
Asia continued to be strong.
“The economic environment is
globally improving,” chairman and
chief executive officer Pierre-Andre
de Chalendar said. He said the group
would seek small acquisitions in
emerging countries in the energy
efficiency sector in the second half.
The results prompted the group to
raise its free cashflow generation tar-
the largest holder with a 17.5 per cent
stake at the end of 2009, closed up 0.5
per cent before the statement was
released.
FAST FACTS | SAINT-GOBAIN
● France’s Saint-Gobain is the world’s largest
building materials group.
● Glass panels, made by Saint-Gobain, were
used to build the Louvre Pyramid in Paris and
the Gherkin tower in London.
▲
CONSUMER GOODS
COLGATE-PALMOLIVE posted weaker-
than expected second-quarter sales
and said it would take a bigger hit
than expected from Venezuela’s cur-
rency devaluation.
Colgate’s net income in the sec-
ond quarter rose to $603m (£386.6m),
from $562m a year earlier.
Sales rose two per cent to $3.81bn,
below the $3.94bn analysts had
expected.
Organic sales, excluding foreign
tures, increased 3.5 per cent.
That was far below the consensus
seven per cent gain expected and the
company’s implied six to eight per
cent guidance.
Volume of goods sold was up three
per cent and global pricing rose 0.5
per cent.
The company also said the full-year
hit of a currency devaluation in
Venezuela would be 10 to 15 cents a
share, up from its previous estimate
of six to 10 cents.

Raytheon is
Kazakhmys is DR PEPPER LOSES SUMMER FIZZ

hit by a key
on track with contract loss
firm demand

▲
DEFENCE
DEFENCE contractor Raytheon
reported lower net income yesterday
and cut its full-year sales and profit
forecasts, citing a termination notice
now “probably some upside” to on a UK border security programme.
▲

MINING
BY OLIVER SHAH
CENTRAL Asian miner Kazakhmys
said copper production was ahead of
target yesterday and reassured
investors customer demand
remained firm, batting away fears of
a cooling in the Chinese economy.
Shares in Kazakhmys rose 1.9 per
cent to £12.20 after the FTSE 100 com-
pany said output of copper ore –
which accounts for the bulk of its rev-
enues – stood at 164,300 tonnes in the
first half. The number was down
from 170,100 tonnes year-on-year but
ahead of expectations.
Chief executive Oleg Novachuk
said: “Mining, processing and smelt-
ing have all met or exceeded targets
and we remain on track for our antic-
ipated annual production of at least
300,000 of copper cathode.”
Novachuk implicitly addressed con-
cerns that a slowing demand for raw
materials from China would affect
orders and ore prices, adding:
“Customer demand remains firm for
our metals and our objective will be
to maintain our operational consis-
tency in the second half.”
Paul Cliff at Nomura said there was
Kazakhmys’ full-year copper produc-
tion estimate. “We are very bullish on
the outlook for copper prices so it
should stand to be an obvious benefit
of that,” Cliff added.
Overall ore production was up
slightly in the six months to June
from 16m tonnes last year to 16.2m
tonnes. The average grade of copper
slipped from 1.19 per cent to 1.14 per
cent due to a decline in grade at two
mines in eastern Kazakhstan and a
decline in the Zhezkazgan region.
Zinc production fell 5.9 per cent to
80,900 tonnes. Silver output was
down 26.8 per cent to 6.7m ounces
while gold output dropped 8.3 per
cent to 67,100 ounces.
ANALYSIS l Kazakhmys
1,500 p
1,400
1,220.00
29 Jul
1,300
1,200
1,100
1,000
900
10 May 28 May 18 Jun 8 Jul
Net income at the New York-listed
firm came to $208m (£133m), or 55
cents a diluted share, in the second
quarter, compared with $489m, or
$1.23 a share, a year earlier.
The missile maker said the termi-
nation notice by the UK Border
Agency cut profit by 71 cents a share.
It said it was required to recognise the
potential financial effect of the termi-
nation notice in the second period,
and added it intends to pursue collec-
tion of unbilled receivables and dam-
ages. The latest results also included
pension expense of nine cents a
share. Adjusted for items, profit came
to $1.27 a share, compared with $1.19
a share expected by analysts.
The UK government ended the con-
tract under which Raytheon provided
technology to carry out security
checks on travellers earlier this
month. Sales fell two per cent to
about $6bn, compared with $6.43bn
expected by analysts. The UK pro-
gramme termination cut quarterly
DR PEPPER SNAPPLE Group posted lower-than-expected quarterly revenue yesterday as sales by $316m. Raytheon said it now
sales of higher-priced drinks ebbed when retailers like Wal-Mart cut prices on soda in the expects full-year earnings from con-
key summer selling season. The US firm, led by chief executive Larry Young (inset), said tinuing operations in the range of
second quarter net income was $183m (£117m) up from $157m a year ago. Sales, at the $4.00 a share to $4.15 a share, down
28 Jul firm which also makes Sunkist and 7UP, rose 2.6 per cent to $1.52bn. from its prior view of $4.75 to $4.90.

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

in the regulator’s Solvency II depart- PricewaterhouseCoopers, Investec, years as an investment analyst at

RBC Wealth Management
The wealth manager has promoted Philip
Harris to the position of head of private client
wealth management for the British Isles.
Harris has been at the firm since early last
year, when he joined to create a domestic
wealth management business. He previously
founded financial advisory business Scott
Goodman Harris, which was sold in 2004 to
UBS, where he moved up the ranks to lead the
UK domestic high net worth business.
KPMG accountancy firm KPMG, as a director
Paul Brenchley has moved over from in its insurance risk team.
the Financial Services Authority to Brenchley was previously a manager
ment. While there, he also worked on a
number of domestic prudential policy
initiatives, including the development of
the Individual Capital Adequacy
Standards regime.
Prior to joining the FSA, he worked
at Royal & Sun Alliance and Aviva.
Cazenove Capital
The investment manager has appointed
John Warren, a small and mid-cap sell-
side specialist, as a fund manager on its
UK equity team.
Warren was formerly director of UK
mid and small-cap sales at UBS, and
has also held positions at
Williams de Broe and HSBC.
He takes up his new position in
September and will work alongside
fund manager Paul Marriage on
Cazenove’s Absolute UK Dynamic fund,
UK Dynamic Absolute Return fund and
the UK Smaller Companies fund.
SEI
The fiduciary management provider has
expanded its institutional advice team
with the appointment of Cyprian
Njamma as an asset and liability ana-
lyst.
Njamma is a fellow of the Institute of
Actuaries and previously spent three
Mercer, where he advised trustees of
UK pension schemes. He spent the first
part of his career as an associate actu-
arial consultant at Aon Consulting.
Eversheds
The law firm has appointed partner
Richard Moulton to lead its private
equity practice.
Moulton has over 15 years of experi-
ence in the private equity sector and
has been at Eversheds since 2003,
working with clients such as ECI
Partners, Inflexion, CBPE Capital,
Gresham and Baird Capital Partners
Europe.

To appear in CITYMOVES please email your career

updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
morganmckinley.com
 Markets&Investment
20 CITYA.M. 30 JULY 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .290.30 +0.30 314.80 246.90 COLT Group . . . . . . . . . . . . . . . .131.90 –0.30 144.20 106.75 Investec . . . . . . . . . . . . . . . . . . .507.00* +5.00 565.00 378.20 Sainsbury(J) . . . . . . . . . . . . . . . .345.20 –0.50 373.00 307.60
3i Infrastructure . . . . . . . . . . . . . 112.00 +0.80 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .535.00* –7.00 574.50 308.10 ITV . . . . . . . . . . . . . . . . . . . . . . . .53.60 +0.25 71.75 37.00 Schroders . . . . . . . . . . . . . . . . .1286.00 +9.00 1450.00 923.00
A.B. Foods . . . . . . . . . . . . . . . .1028.00 –16.00 1096.00 777.00 Cookson . . . . . . . . . . . . . . . . . . .458.00 +2.00 616.00 292.50 Jardine Lloyd Thompson. . . . . . .585.50 –4.00 604.50 420.70 Schroders N/V. . . . . . . . . . . . . .1068.00 +7.00 1185.00 783.00
Aberdeen Asset Man . . . . . . . . . .142.00 +2.50 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1307.00 +40.00 1323.00 541.00 Johnson Matthey . . . . . . . . . . .1704.00* –3.00 1814.00 1302.00 Scot. & Sthrn Energy. . . . . . . . . 1117.00* +2.00 1206.00 357.50
Admiral. . . . . . . . . . . . . . . . . . .1463.00 –10.00 1519.00 938.00 CSR . . . . . . . . . . . . . . . . . . . . . .357.00 +1.50 524.00 338.75 Kazakhmys . . . . . . . . . . . . . . . .1220.00 +23.00 1634.00 768.00 Scottish Mortgage. . . . . . . . . . . .603.50 +1.50 623.50 424.25
Aegis . . . . . . . . . . . . . . . . . . . . . 119.50 +2.50 137.30 81.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .494.70 +8.90 539.00 290.00 Kesa Electricals . . . . . . . . . . . . .128.50 –0.80 162.00 98.45
Afren . . . . . . . . . . . . . . . . . . . . . .91.25 –1.35 111.00 51.75 Dana Petroleum . . . . . . . . . . . .1710.00 –6.00 1728.00 968.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .218.70 –2.30 255.00 196.50 SEGRO . . . . . . . . . . . . . . . . . . . .287.20 +3.60 403.10 244.00
African Barr Gold . . . . . . . . . . . .533.50 –9.50 685.00 520.50 Davis Service . . . . . . . . . . . . . . .379.90 +3.40 442.30 323.25 Ladbrokes . . . . . . . . . . . . . . . . .138.70 +1.70 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .556.00 +2.50 656.50 394.30
Aggreko . . . . . . . . . . . . . . . . . .1543.00 +16.00 1639.00 524.50 De La Rue . . . . . . . . . . . . . . . . . .729.00* –1.50 1021.00 727.00 Lancashire Hldgs . . . . . . . . . . . .537.00 –0.50 545.00 416.70 Severn Trent . . . . . . . . . . . . . . .1280.00* –5.00 1310.00 921.00
Alliance Trust . . . . . . . . . . . . . . .319.60* –1.70 352.70 281.00 Debenhams . . . . . . . . . . . . . . . . .64.10 –0.80 91.95 51.95 Land Securities . . . . . . . . . . . . . .622.00* +1.50 743.50 501.00 Shaftesbury . . . . . . . . . . . . . . . .406.00 +4.10 426.50 310.00
AMEC . . . . . . . . . . . . . . . . . . . . .876.50 –3.00 909.50 684.50 Derwent London . . . . . . . . . . . .1369.00 +11.00 1490.00 911.00 Legal & General . . . . . . . . . . . . . .92.10 +0.15 94.70 57.00 Shire. . . . . . . . . . . . . . . . . . . . .1490.00 +21.00 1526.00 850.00
Amlin . . . . . . . . . . . . . . . . . . . . .430.20 +9.20 433.40 326.75 Dexion Absolute . . . . . . . . . . . . .140.00 +1.20 148.00 118.00 Lloyds Banking Gp . . . . . . . . . . . .68.91 –0.44 75.58 45.30 Smith & Nephew . . . . . . . . . . . . .551.00 +3.50 700.50 458.60
Anglo American . . . . . . . . . . . .2541.00 +1.50 3015.50 1777.50 Diageo . . . . . . . . . . . . . . . . . . . 1104.00 –8.00 1176.00 900.50 Logica . . . . . . . . . . . . . . . . . . . .107.10 +5.10 149.10 85.50 Smith(Ds) . . . . . . . . . . . . . . . . . .146.70 +4.70 150.20 70.00
Antofagasta . . . . . . . . . . . . . . . .997.50 +3.50 1100.00 676.00 Dimension Data . . . . . . . . . . . . .123.90 +0.30 125.50 55.00 London Stk Exchange . . . . . . . . .658.00* –3.00 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . . 1118.00 –3.00 1186.00 715.00
Aquarius Platinum . . . . . . . . . . .276.40 –8.10 490.00 211.50 Domino’s Pizza . . . . . . . . . . . . . .414.80* –3.00 431.30 228.40 Lonmin . . . . . . . . . . . . . . . . . . .1580.00 +21.00 2198.00 1214.00 SOCO Intl . . . . . . . . . . . . . . . . . .425.80 –2.20 444.60 380.60
ARM Holdings . . . . . . . . . . . . . . .331.80 –3.70 370.00 120.50 Drax . . . . . . . . . . . . . . . . . . . . . .388.50 +4.90 496.50 321.50 Man . . . . . . . . . . . . . . . . . . . . . .223.40 –1.10 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .893.00 +2.50 949.00 545.00
Arriva . . . . . . . . . . . . . . . . . . . . .770.50 — 782.50 415.50 DSG Intl . . . . . . . . . . . . . . . . . . . .27.87 +0.26 39.75 23.25 Marks & Spencer. . . . . . . . . . . . .351.20 –1.20 412.70 321.90 Spirax-Sarco Eng . . . . . . . . . . .1561.00 –19.00 1617.00 893.50
Ashmore . . . . . . . . . . . . . . . . . . .285.40 –5.10 311.20 195.00 Dunelm . . . . . . . . . . . . . . . . . . . .380.40 –4.90 438.40 250.70 Meggitt . . . . . . . . . . . . . . . . . . . .305.10 –2.80 331.00 168.50
Astrazeneca . . . . . . . . . . . . . . .3289.00 +86.50 3376.00 2668.00 Easyjet . . . . . . . . . . . . . . . . . . . .396.00 –7.60 499.90 281.25 Melrose . . . . . . . . . . . . . . . . . . .230.30 –1.00 251.50 111.50 Spirent Comms . . . . . . . . . . . . . .128.50 –1.50 135.90 65.25
Atkins(Ws) . . . . . . . . . . . . . . . . .729.50 — 760.50 532.50 Edinburgh Inv Tst . . . . . . . . . . . .398.50* +1.30 412.40 313.50 Mercantile IT . . . . . . . . . . . . . . . .972.00* +13.50 1002.00 781.00 Sports Direct Intl . . . . . . . . . . . . . 112.50 –1.50 134.00 81.80
Autonomy Corp . . . . . . . . . . . .1658.00 +8.00 2012.00 1161.00 Electrocomponents . . . . . . . . . . .225.40 +0.50 245.00 142.90 Michael Page Intl. . . . . . . . . . . . .393.20 –0.70 461.50 274.00 SSL Intl . . . . . . . . . . . . . . . . . . . 1180.00 — 1190.00 522.50
Aveva . . . . . . . . . . . . . . . . . . . .1353.00* –3.00 1371.00 755.00 EnQuest . . . . . . . . . . . . . . . . . . .120.90 +1.90 121.40 87.35 Micro Focus . . . . . . . . . . . . . . . .414.20 –10.80 550.00 300.90 St James’s Place . . . . . . . . . . . . .279.90 +6.60 296.90 172.25
Aviva . . . . . . . . . . . . . . . . . . . . .365.90 +7.10 474.00 290.20 Essar Energy . . . . . . . . . . . . . . .428.90 –4.90 475.90 358.50 Millen & Copthorne . . . . . . . . . . .481.80 +11.60 504.00 250.00 Stagecoach. . . . . . . . . . . . . . . . .174.50 –2.80 204.90 126.20
Babcock International . . . . . . . . .557.50 +6.00 660.50 459.80 Eurasian Nat Res . . . . . . . . . . . .900.50 –10.50 1276.00 731.00 Misys . . . . . . . . . . . . . . . . . . . . .255.70 +0.70 281.70 171.75 Standard Chartered . . . . . . . . . .1861.00 –8.00 1927.00 1310.00
BAE Systems . . . . . . . . . . . . . . .320.10 +3.10 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .598.00 +1.00 630.00 223.50 Mitchells & Butlers . . . . . . . . . . .313.10 –0.70 343.90 228.30 Standard Life . . . . . . . . . . . . . . .204.40 +2.10 237.00 170.00
Balfour Beatty . . . . . . . . . . . . . . .252.30 +0.20 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .635.00 +1.00 664.50 475.75 MITIE . . . . . . . . . . . . . . . . . . . . .210.50* +1.30 281.70 195.20 SuperGrp . . . . . . . . . . . . . . . . . .979.00 –9.00 1030.00 499.00
Barclays . . . . . . . . . . . . . . . . . . .334.10 –5.00 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .90.85* –0.15 96.80 75.50 Mondi . . . . . . . . . . . . . . . . . . . . .447.40 +1.20 488.00 238.75 TalkTalk . . . . . . . . . . . . . . . . . . .123.30 +1.30 147.10 106.60
Barratt Development . . . . . . . . . . .98.10 +0.55 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .289.50 +4.10 396.20 138.00 Monks Inv Tst . . . . . . . . . . . . . . .295.00* +2.20 321.20 238.75 Talvivaara Mining . . . . . . . . . . . . 411.50 +5.50 501.50 341.40
BBA Aviation . . . . . . . . . . . . . . .197.10 +2.10 220.00 123.50 FirstGroup . . . . . . . . . . . . . . . . .375.90* +1.80 448.80 322.75 Morrison Wm . . . . . . . . . . . . . . .269.20 –1.30 306.30 255.00 Tate & Lyle . . . . . . . . . . . . . . . . .452.70* –3.20 509.00 336.50
Beazley. . . . . . . . . . . . . . . . . . . .120.00 +1.00 125.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .274.60 –0.30 297.20 229.50 Murray Intl Tst . . . . . . . . . . . . . . .863.50* +17.50 893.50 632.00 Taylor Wimpey . . . . . . . . . . . . . . .27.21 +0.20 54.90 24.29
Bellway. . . . . . . . . . . . . . . . . . . .588.00 +8.50 927.50 554.00 Fresnillo . . . . . . . . . . . . . . . . . .1029.00 –5.00 1139.00 539.50 National Express. . . . . . . . . . . . .236.80 –6.10 258.60 155.86
Berkeley . . . . . . . . . . . . . . . . . . .820.00 +4.00 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .259.40 –0.10 285.70 208.50 National Grid . . . . . . . . . . . . . . .510.50* –2.50 607.65 474.80 Telecity . . . . . . . . . . . . . . . . . . . .439.80 +6.30 458.90 300.00
BG . . . . . . . . . . . . . . . . . . . . . .1013.00 –26.50 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .472.10 +4.10 484.00 370.00 Next . . . . . . . . . . . . . . . . . . . . .2161.00 –5.00 2360.00 1601.00 Templeton Emrg Mkts . . . . . . . . .553.00* +4.50 598.00 390.00
BHP Billiton . . . . . . . . . . . . . . .1977.50 –14.00 2346.00 1481.00 GKN . . . . . . . . . . . . . . . . . . . . . .138.80 –1.10 155.00 90.00 Northumbrian Water . . . . . . . . . .329.90 +0.30 333.20 219.90 Tesco . . . . . . . . . . . . . . . . . . . . .398.25 +2.25 454.90 361.20
BlackRock Mining . . . . . . . . . . . .570.00 –8.00 654.50 412.00 GlaxoSmithKline . . . . . . . . . . . . 1121.50* –13.00 1347.00 1088.00 Old Mutual . . . . . . . . . . . . . . . . .122.90 +1.00 127.20 85.80 Thomas Cook . . . . . . . . . . . . . . .186.80 +0.80 277.20 172.30
Booker . . . . . . . . . . . . . . . . . . . . .43.58 –0.28 49.50 33.00 Great Portland Estates . . . . . . . .308.00 +4.70 332.10 221.50 Pace . . . . . . . . . . . . . . . . . . . . . .210.80 +1.80 243.80 145.00 Tomkins . . . . . . . . . . . . . . . . . . .324.70 +1.10 325.50 155.00
BP . . . . . . . . . . . . . . . . . . . . . . .413.45 +10.95 658.20 296.00 Greene King . . . . . . . . . . . . . . . .444.90 +2.10 504.00 372.50 Partygaming . . . . . . . . . . . . . . . .309.50 +52.50 339.70 205.80 Travis Perkins . . . . . . . . . . . . . . .859.00 +29.00 915.00 647.50
Brit Insurance . . . . . . . . . . . . . . .997.00 –8.00 1017.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .486.20* –0.80 562.50 324.00 Pearson . . . . . . . . . . . . . . . . . .1012.00 +12.00 1069.00 667.50 TUI Travel . . . . . . . . . . . . . . . . . .214.80 +3.20 313.90 202.30
British Airways . . . . . . . . . . . . . .216.00 –4.00 255.80 127.50 Halma . . . . . . . . . . . . . . . . . . . . .278.00* +3.00 298.70 184.25 Pennon . . . . . . . . . . . . . . . . . . . .577.50 — 587.50 434.40 Tullett Prebon . . . . . . . . . . . . . . .344.20 –0.80 436.20 261.20
British Amer. Tob . . . . . . . . . . .2197.00 –45.50 2335.50 1807.00 Hammerson . . . . . . . . . . . . . . . .389.90 +2.10 460.30 325.50 Persimmon . . . . . . . . . . . . . . . . .361.30 +5.10 534.50 340.20 Tullow Oil . . . . . . . . . . . . . . . . .1252.00 –33.00 1375.00 970.00
British Empire Tst . . . . . . . . . . . .439.90 +2.60 467.90 338.50 Hargreaves Lansdown . . . . . . . .364.90 +4.30 387.00 211.00 Petrofac . . . . . . . . . . . . . . . . . .1273.00 –14.00 1372.00 730.00 UK Commercial Prop. . . . . . . . . . .77.00* +0.90 84.90 62.25
British Land . . . . . . . . . . . . . . . .466.90* –2.80 532.00 409.00 Hays . . . . . . . . . . . . . . . . . . . . . . .91.25 –0.05 119.00 87.25 Petropavlovsk . . . . . . . . . . . . . .1010.00 –29.00 1370.00 601.00 Ultra Electronics . . . . . . . . . . . .1618.00 +30.00 1681.00 1094.00
Britvic. . . . . . . . . . . . . . . . . . . . .480.20 –2.50 518.00 323.25 Henderson . . . . . . . . . . . . . . . . .132.00 +1.30 157.80 101.25 Premier Farnell . . . . . . . . . . . . . .238.50 +0.80 252.60 138.75 Unilever . . . . . . . . . . . . . . . . . .1821.00 –44.00 2024.00 1524.00
Brown(N.) . . . . . . . . . . . . . . . . . .227.20* –7.30 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .414.40 +0.40 587.00 368.70 Premier Oil . . . . . . . . . . . . . . . .1496.00 –9.00 1610.00 984.00
BSkyB . . . . . . . . . . . . . . . . . . . . 711.00 –9.00 732.00 516.50 Hikma Pharma . . . . . . . . . . . . . .720.00 –4.00 746.00 430.00 Provident Financial . . . . . . . . . . .815.00 –4.50 986.00 792.50 United Utilities . . . . . . . . . . . . . .560.50* –1.50 575.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .144.80 +4.90 151.00 108.40 Hiscox . . . . . . . . . . . . . . . . . . . .357.00 +8.10 369.30 299.20 Prudential . . . . . . . . . . . . . . . . . .561.00 +9.50 665.00 426.00 Utd Business Media . . . . . . . . . .573.00 +24.00 579.50 366.00
Bunzl . . . . . . . . . . . . . . . . . . . . .703.50 –1.50 784.50 514.00 Hochschild Mining . . . . . . . . . . .293.80 –6.20 370.60 220.00 PZ Cussons . . . . . . . . . . . . . . . .350.10 –1.10 373.20 210.10 Vedanta Resources . . . . . . . . . .2479.00* –45.00 2967.00 1616.00
Burberry . . . . . . . . . . . . . . . . . . .848.00* +1.50 886.50 436.00 Home Retail . . . . . . . . . . . . . . . .239.60 –0.20 336.50 208.50 Qinetiq . . . . . . . . . . . . . . . . . . . .124.90 –1.80 179.10 113.90 Victrex . . . . . . . . . . . . . . . . . . .1212.00 –2.00 1245.00 613.50
Cable & Wire Comms . . . . . . . . . .61.00* +0.75 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2301.00* –4.00 2376.00 1336.00 Randgold Resources. . . . . . . . .5665.00 –25.00 6600.00 3351.00 Vodafone . . . . . . . . . . . . . . . . . .150.50* +2.25 153.80 118.55
Cable & Wire Wwide . . . . . . . . . . .67.80* –0.65 94.80 64.85 HSBC Hldgs . . . . . . . . . . . . . . . .656.30 –7.00 766.80 564.70 Reckitt Benckiser . . . . . . . . . . .3181.00 –49.00 3667.00 2686.00 Weir . . . . . . . . . . . . . . . . . . . . . 1188.00 –3.00 1266.00 524.50
Cairn Energy. . . . . . . . . . . . . . . .468.80 –0.10 485.30 306.80 Hunting . . . . . . . . . . . . . . . . . . .534.50 –4.00 659.50 395.75 Reed Elsevier . . . . . . . . . . . . . . .552.00 +20.00 566.00 403.75 Wetherspoon(J.D.) . . . . . . . . . . .435.00 –0.20 556.00 378.70
Caledonia Invs . . . . . . . . . . . . .1621.00 +25.00 1759.00 1496.00 ICAP . . . . . . . . . . . . . . . . . . . . . .408.00* –3.60 478.30 291.70 Regus . . . . . . . . . . . . . . . . . . . . . .76.50 +0.25 125.50 67.50 WH Smith . . . . . . . . . . . . . . . . . .421.10 –4.20 551.00 396.00
Capita . . . . . . . . . . . . . . . . . . . . .727.50 –3.00 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .479.80 +3.70 492.20 291.00 Rentokil Initial . . . . . . . . . . . . . . .107.30 +3.90 140.20 87.25 Whitbread . . . . . . . . . . . . . . . . .1439.00 +1.00 1645.00 827.50
Capital & Counties . . . . . . . . . . . 111.50 –0.30 125.40 99.60 Imagination Tech Gp . . . . . . . . . .330.00 –10.00 345.60 149.75 Rexam . . . . . . . . . . . . . . . . . . . .316.50 –11.10 348.80 222.50 William Hill . . . . . . . . . . . . . . . . .173.30 +4.00 217.80 160.50
Capital Shopping Centres . . . . . .349.00 +0.20 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .718.00 –11.00 786.00 315.50 Rightmove . . . . . . . . . . . . . . . . .665.00 –1.50 729.00 398.75 Witan Inv Tst . . . . . . . . . . . . . . . .450.30 +4.30 487.00 357.50
Carillion . . . . . . . . . . . . . . . . . . .305.50 –2.90 361.90 246.25 Imperial Tobacco. . . . . . . . . . . .1813.00* –14.00 2159.00 1625.00 Rio Tinto . . . . . . . . . . . . . . . . . .3355.00 –32.50 4104.00 2205.00
Carnival . . . . . . . . . . . . . . . . . .2306.00 –15.00 2937.00 1649.00 Inchcape. . . . . . . . . . . . . . . . . . .321.70 +8.20 347.00 235.00 RIT Capital Partners . . . . . . . . . 1169.00 +11.00 1215.00 910.50 Wolseley . . . . . . . . . . . . . . . . . .1453.00 +1.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .382.40 +0.10 394.60 303.20 Informa . . . . . . . . . . . . . . . . . . . .406.60 +13.50 439.40 225.00 Rolls Royce . . . . . . . . . . . . . . . .585.50 –2.00 631.50 368.00 Wood Group (John). . . . . . . . . . .363.70 –1.20 411.70 261.50
Centamin Egypt . . . . . . . . . . . . .151.30 –2.00 174.75 80.00 Inmarsat . . . . . . . . . . . . . . . . . . .747.00 –9.50 831.00 491.00 Rotork . . . . . . . . . . . . . . . . . . .1494.00 +98.00 1504.00 869.00 WPP . . . . . . . . . . . . . . . . . . . . . .686.00 +10.50 744.00 440.00
Centrica . . . . . . . . . . . . . . . . . . .306.70 +2.70 320.00 215.50 Intercontl Hotels . . . . . . . . . . . . 1107.00 –1.00 1244.00 632.50 Royal Bank Of Scot . . . . . . . . . . . .49.96 +0.23 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . .1032.00 –12.50 1344.50 713.00
Charter Intl . . . . . . . . . . . . . . . . .758.50 +8.00 855.50 488.25 Intermediate Capital . . . . . . . . . .272.00* +1.80 332.00 172.00 Royal Dutch Shell A . . . . . . . . .1783.50 –3.50 2068.50 1521.50 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2934.00* –8.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1602.00 –2.00 1745.00 1024.00 Royal Dutch Shell B . . . . . . . . .1713.00 +6.00 1997.50 1505.00
Chloride Group . . . . . . . . . . . . . .373.80* +0.70 390.50 132.50 Intl Personal Fin . . . . . . . . . . . . .235.90 +2.70 283.00 127.00 RSA Insurance . . . . . . . . . . . . . .128.30 +0.50 142.00 114.10 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .683.50 +1.00 806.50 660.00 Intl Power . . . . . . . . . . . . . . . . . .360.10 +1.70 375.90 243.00 SABMiller . . . . . . . . . . . . . . . . .1926.50 +15.50 2090.00 1307.00
Cobham . . . . . . . . . . . . . . . . . . .237.80 +0.60 278.60 173.60 Invensys . . . . . . . . . . . . . . . . . . .271.60* –7.50 350.30 234.50 Sage . . . . . . . . . . . . . . . . . . . . . .239.90 –3.60 260.50 191.00 www.interactivedata.com

Bumper UK earnings fail to lift Downbeat outlook

FTSE as bank sell-off weighs for tech hits Wall St
“It’s now a question of getting the ding 1.5 per cent, while HSBC fell 1.1 12.87 points, or 0.57 per cent, to
THELONDON corporate results season out of the
way and making sure there aren't any
per cent.
Rexam was the standout blue-chip THENEW YORK 2,251.69.
Friday’s GDP number is widely

REPORT more nasties on the economic front

because obviously still in the back-
ground are concerns about the
decliner, shedding 3.4 per cent after
Credit Suisse cut its rating following
the firm’s first-half results.
REPORT expected to show US economic
growth slowed in the second quarter
as some investors fret about the possi-
strength of the global economic Negative broker sentiment also bility of a double-dip recession.

B U
RITAIN’S top shares closed recovery.” weighed on British American S stocks sagged in volatile Nvidia fell 9.9 percent to $9.13, and
easier yesterday as a retreat BAE Systems, Europe’s largest Tobacco, off two per cent after trading yesterday after weak Symantec dropped 11.2 percent to
from banks and investor cau- defence contractor, climbed one per Morgan Stanley cut its rating on the outlooks from technology $13.03.
tion ahead of US growth data cent after it reported a 14 per cent cigarette maker after it’s results. companies and downbeat Exxon Mobil, the S&P’s largest com-
offset a batch of robust UK corporate rise in first-half earnings and said it “After an initial early lift from comments from a Federal Reserve pany by market capitalization, fell 0.9
earnings from companies including expected to deliver growth in the full some positive blue-chip earnings official gave investors little reason to percent to $60.34 after reporting a
AstraZeneca. year. updates, it has turned out to be some- buy. better-than-expected quarterly profit.
The FTSE 100 closed down 5.73 BT added 3.5 per cent as the tele- thing of a lacklustre day in the end,” The market has struggled to make Consumer staples also fell, with the
points, or 0.1 per cent, at 5,313.95, coms provider said it did not expect said David Jones, chief market strate- headway this week. The S&P 500 fell S&P consumer staple index down 1.1
after it ended 0.9 per cent lower on to be overly damaged by looming gist at IG Index. for a third straight day. per cent after Kellogg lowered its out-
Wednesday. British spending cuts and repeated its Earlier in the session, investors wel- Friday’s Commerce Department look and Colgate-Palmolive posted
AstraZeneca advanced 2.7 per cent full-year outlook. comed a drop in US weekly jobless report on second-quarter gross weaker-than-expected sales.
after the drugmaker doubled its 2010 And Vodafone rose 1.5 per cent as claims. Initial claims for state unem- domestic product will be another Through yesterday morning, 60 per
share buyback programme, posted talk turned to plans for an initial pub- ployment insurance dropped by marker for the strength of the recov- cent of companies in the S&P 500
strong results and won an endorse- lic offering by the Indian telecoms 11,000. ery. have reported quarterly earnings,
ment from a US advisory panel for its venture between the British mobile The PHLX Semiconductor Index with 75 per cent of companies beat-
potential blockbuster heart drug telecoms provider and Essar Group. ANALYSIS l FTSE bounced off a session low near its 200- ing expectations and 35.1 per cent
Brilinta. Essar said plans are at an initial stage. 5,800 day moving average, watched by year-over-year earnings growth.
5,313.95
Reed Elsevier also notched up good Energy stocks were mixed, with 29 July investors to determine market move- About 8.45 billion shares traded on
5,600
gains, adding 3.8 per cent, after the Royal Dutch Shell reversing gains to ment. The index was still down 1.9 the New York Stock Exchange, the
publishing and events group said end 0.2 per cent lower in the wake of 5,400 per cent but was up six per cent for American Stock Exchange and
underlying revenues returned to its second-quarter results. July. Nasdaq, short of last year's estimated
5,200
growth in the first half, beating Banks were out of favour, retreat- The Dow Jones industrial average daily average of 9.65 billion.
expectations. ing after an advance earlier in the ses- 5,000 dropped 30.72 points, or 0.29 per Advancing stocks outnumbered
“(UK) corporate earnings generally sion and following recent strong cent, to 10,467.16. The Standard & declining ones on the NYSE by a ratio
speaking have been fairly pleasing,” gains on relief after Europe’s recent 4,800 Poor’s 500 Index dropped 4.59 points, of about 9 to 8, while on the Nasdaq,
said Richard Hunter, head of UK equi- stress tests. 4,600 or 0.41 per cent, to 1,101.54. The about nine stocks fell for every eight
ties at Hargreaves Lansdown. Barclays was the worst off, shed- 19 May 9 Jun 29 Jun 19 Jul Nasdaq Composite Index dropped that rose.
CITYA.M. 30 JULY 2010
Ensure your
money is safe
from inflation
Savers should look to equity income funds
to beat price pressures, writes Jessica Mead
W
HEN the world turns topsy-
turvy, savers want to stuff
their cash under the
metaphorical mattress. And
up until very recently, National Savings
& Investment (NS&I) index-linked sav-
ings certificates, which were linked to
the RPI, were the product of choice.
More than £11bn was poured into
these Treasury-backed certificates over
the last five years as the tax-free income
and inflation-beating guarantee attract-
ed savers. And they didn’t just protect
your from inflation – your initial outlay
would be protected in full and the inter-
est rate would never slip below 1 per
cent.
But last week the NS&I announced
that it had withdrawn these inflation-
proof products from sale in the wake of
excess demand. This year has seen con-
sumer price index (CPI) inflation consis-
tently exceed 3 per cent while the retail
prices index (RPI) touched 5.3 per cent
in April, its highest level in 19 years.
So at a time when inflation protec-
tion is needed more than ever, where
can savers put their hard-earned
money? Nothing even comes close to
the NS&I’s index-linked savings certifi-
cates.
Cash ISAs might appear attractive –
interest is received tax-free, you can put
up to £5,100 into them every year and
you don’t have to lock up your money.
Thanks to the Financial Services
Compensation Scheme, capital is also
protected up to £50,000.
Investment | Personal Finance 21
Don’t get caught
out in a storm
Picture: GETTY
gilts. But neither offer particularly good
returns on short-term fixed rate prod-
ucts. For example, the Santander 18-
month fixed rate bond – one of the most
generous on offer – requires you to lock
up a minimum of £25,000 until
February 2012 for an interest rate of 3.25
per cent.
Even five-year lock-ups won’t offer you
more than 5 per cent – the ICICI five-
year fixed rate bond is one of the best
around right now but you’ll only get
4.75 per cent and can’t make any addi-
tional deposits during the term.
Adrian Lowcock, senior investment
adviser at BestInvest, says: “Savings-wise,
in the short-term you are going to find
it difficult to protect against inflation
in the current environment.”
But he doesn’t recommend locking
up your money for anything longer
than two years: “The problem is that
you don’t know where rates and infla-
&KUEQXGTVJGDGPGƂVUQHQHHUJQTG
tion will be in two years time.”
Instead, he points to dividend growth DCPMKPIYKVJ*5$%2TGOKGT
as a potential inflation-beating source
of income. “Equities will benefit from 33°N – Beirut, Lebanon
rising prices in general and it is proba-
bly the most suitable given the uncer-
tainty on the economy.”
Lowcock suggests both the Standard We enable expats to manage, grow and protect their wealth and, depending on
Life Higher Equity Income fund, man-
aged by Karen Robertson and the circumstances, achieve potential tax savings that offshore banking can bring.
Artemis Income fund, managed by
Adrian Frost and Adrian Gosden. The To save you time, money and hassle we provide:
Artemis fund’s historic yield is 4.8 per
cent. r 5RGEKCNKUVJGNRCPFCFXKEGHTQOCPQHHUJQTG4GNCVKQPUJKR/CPCIGOGPVVGCO
In terms of dividend growth, he rec-
But they don’t protect you from infla-
tion, especially when interest rates are
so low. Even if you agree to lock up your
money for five years, no cash ISA will
currently offer you an interest rate that
exceeds the RPI.
In terms of investments, you could
look at fixed bonds and index-linked
PERSONAL FINANCE NEWS
BY JESSICA MEAD
STAYCATION IS STILL IN FAVOUR
Britons are feeling the pinch when it
comes to holidays with almost 40 per cent
of us actively trying to spend less money
on our holidays this year. And of those
looking to cut back, more than half have
decided not to go abroad to cut costs. A
survey by trade body R3 showed that 42
per cent of Londoners are trying to cut the
cost of their holiday and, of those, 43 per-
cent will be holidaying in the UK.
RATE CUT ON CO-OP’S ETHICAL CARD
The Co-operative Bank will be cutting rates
on its “think” credit card on Monday to
reward ethically-minded consumers. The
ethical bank has teamed up with a number
of companies such as IKEA, Trainline,
Lush, Ecotricity and Raleigh. Interest
rates will be cut to 0 per cent for
three months on purchases made
with selected partners. Balance
transfer rates will be
reduced to 3.9 per cent
per annum from 7 per
cent for six months
with no fee.
ommends the Henderson Asian
Dividend Income fund, which yields
about 4.1 per cent a year and gives you
exposure to a region which sees divi-
dend growth of about 7 per cent a year.
No product will beat the NS&I certifi-
cates, but diversifying your income
stream will give you some protection.
TIED PRODUCTS SURGE IN 2010
The proportion of mortgages and regular
savings accounts that are only available for
people who have another product with the
same provider has increased dramatically
since the beginning of 2010, discouraging
consumers from shopping around to get
the best deals, research by Which? Money
showed earlier this week. While the prod-
uct itself might be a good deal, the product
it is tied to might actually be very poor
value.
LEEDS LAUNCHES CASHBACK MORTGAGE
Leeds Building Society has this week
launched a 3 per cent cashback mortgage
which is available throughout the UK. The
maximum loan-to-value available is 80
per cent. There is no higher lending
charge and an early repayment fee
only applies for the first three
years. The mortgage is also
portable, which means you
can take the product
with you without
penalty should you
decide to move.
r #PCYCTFYKPPKPI+PVGTPGV$CPMKPIUGTXKEGVJCVCNNQYU[QWVQ
– Use a single login to access all your eligible worldwide HSBC accounts
– Transfer money between those accounts instantly, free of charge
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US dollar and euro
r #P+PVGTPCVKQPCN9GCNVJ/CPCIGOGPVUGTXKEGVQJGNR[QWCEJKGXG[QWT
NQPIVGTOƂPCPEKCNIQCNU
6QƂPFQWVJQYYGECPJGNRGZRCVUNKMG[QW
Call +44 1534 616079
Visit www.offshore.hsbc.com/am
*Best Consumer Internet Bank, Channel Islands – in the Global Finance Best Internet Banking Awards 2009. HSBC Bank International
is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation, Investment and Fund Services
Businesses and licensed by the Guernsey Financial Services Commission for Banking, Collective Investment Schemes and Investment
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Channel Islands and the Isle of Man are not protected by the rules made under the UK’s Financial Services and Markets Act 2000 for
the protection of retail clients, including the UK Financial Services Compensation Scheme and the UK’s Financial Ombudsman
Service. However, HSBC Bank International Limited is a member of the Depositors Compensation Scheme as set out in the Banking
(Depositors Compensation) (Jersey) Regulations 2009. HSBC Bank International Limited is a participant in the Guernsey Banking
Deposit Compensation Scheme. The Scheme offers protection for ‘qualifying deposits’ up to £50,000, subject to certain limitations.
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Isle of Man are protected by the Isle of Man Compensation of Depositors Regulations 2008. For further information on these
Schemes, please visit the Important Information section on our website www.offshore.hsbc.com/1/2/important-information. Copies
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 Living
22 CITYA.M. 30 JULY 2010

| London Property

QUEEN MARY’S WEST HAM

GATE VICTORIAN
With the Olympics TOWNHOUSE
causing a ripple Price: £374,995
effect in house This authentic
prices, this develop- Victorian house fea-
ment in south tures hard-wood
Woodford could be floors in its spacious
the ultimate bargain sitting room as well
for buyers. Prices as three bedrooms
start at £197,500 and a fully-fitted
for a one-bedroom modern kitchen with
flat, with access to dark granite coun-
nine acres of land- tertops. It also
scaped gardens and offers a secluded
water features for rear garden, a
residents to roam jacuzzi in one of the
around, all 19 min- bathrooms and
utes from Liverpool beautiful views onto
Street station on the the open spaces of
train. Contact: 020 West Ham Park.
8506 1955, Contact: 020 8534
www.telford- 7788,
homes.plc.uk. www.keatons.com.

Buy now to take LETT ROAD

Price: £235,000
This brand new
Stratford apartment
block offers residents

advantage of the stunning views over

the Olympic park from
its roof terrace.
With five units already
sold, the block could
sell out fast. Contact:

Olympic dream 020 7718 5220,

www.thornsett-
group.com.

Price rises in east London 2005-2010

Buyers are moving east for value in advance Haringey
Waltham Redbridge
of the 2012 games, writes Juliet Samuel Forest 1 E1
Shoreditch
2 E2
Bethnal Green
3 E3
Bow
£225,441 ● £234,960 ● £222,269 ●
14 £345,827 ■ £317,888 ■ £292,805 ■

N
EW data released by Lloyds TSB and Stratford, which contains the Olympic vil- 53% 35% 32%
the Land Registry this week revealed lage, has yet to see significant price rises in 10
that since London won its bid to contrast to the surrounding districts. This 4 9 4 E5
Clapton
5 E6
East Ham
6 E7
Forest Gate
host the 2012 Olympic games, prop- could be because some of the planned £207,805 ● £189,368 ● £203,717 ●
erty prices in east London have climbed an infrastructure improvements have only Hackney 11 £288,720 ■ £203,500 ■ £219,241 ■
average of 26 per cent. This compares to a
22 per cent rise across London with houses
just reached Stratford station, with a lot of
the surrounding area still little more than
ngton 6 39% 7% 8%

in the top-performing district, Homerton, a building site. Now, however, 7 8 7 E8 8 E9 9 E10

jumping by nearly 70 per cent in value. Cunningham says a buzz is building about 13 Newham
Dalston
£218,190 ●
Homerton
£210,119 ●
Leyton
£186,369 ●
With the two-year countdown to the the area: “If you go to Stratford station now, 3 £303,243 ■ £355,522 ■ £209,769 ■
games kicking off this week, buyers look- it’s a beautiful big, glass construction. The 2 12 5 39% 69% 13%
ing to get on the housing ladder, upgrade aim is to integrate the canals and the Tower
their home or just make some extra money industrial history with the modern. You’re Hamlets London City 10 E11 11 E12 12 E13
on the side would be wise to look east for asking people to buy into that vision.” City 1
Airport Leytonstone
£237,187 ●
Manor Park
£206,207 ●
Plaistow
£187,222 ●
deals. Aside from price rises, those whose £297,002 ■ £214,850 ■ £196,426 ■
Of course, not all of the East End’s properties have good connections to 25% 4% 5%
above-average price rises are due to the Olympic facilities stand to rake in rental
13 E15 14 E17 15 SE10
games. But the infrastructure develop- revenues at up to a triple their normal Southwark Stratford Walthamstow Greenwich
ment taking place in the area has jump- rates. Tim Boughton of online rentals serv- 15 £206,211 ● £193,314 ● £234,939 ●
started the market. The Westfield
shopping centre is due to open in
ice HomeAway Holiday-Rentals says:
“We’re already seeing an unusual number
Greenwich £212,217 ■
3%
£224,327 ■
16%
£262,492 ■
12%
Stratford next summer and in the span of of enquiries into 2012, with Greenwich
a few years, East London has seen an top of the list.” And some savvy owners are East London Average
extension of the East London line, an already planning to take advantage of this Bexley
£209,170 ●
expansion of the over-ground network demand. Deola Laniyan works at an adver- eth £262,953 ■
and, for the north-eastern boroughs, the tising agency and intends to stay at a 26%
● Average price July 2005
connection of a high-speed rail link to friend’s while she rents out her property
King’s Cross. There is more to come with for the games: “It’s the perfect chance to Lewisham ■ Average price April 2010
the opening of new cycle superhighways, take advantage of the location, to pay off Olympic site
improvements to London City airport, a some debt and use the money towards my
Jubilee and Victoria line upgrade and even mortgage,” she says. River Habitat’s Julian
the opening of the east London cable car,
which will shuttle people across the river
Jarvis also says that holiday rental
demand is already rising for the summer
NEED TO KNOW | RENTING OUT YOUR OLYMPIC HOME
from the Royal Docks to Greenwich. of 2012.
Developers have been trying to jump on Some owners are even contemplating l The best properties to rent out for the Olympic peri- rental starts.
this bandwagon for years, but not all of renting out their place for the whole year od will be two to three-bedroom properties with excel- l Rental agencies can take a 25 per cent cut of your
them will make it, says Bernadette in the hopes of catching demand from lent transport links to sporting facilities. rental revenues for a short-term let. Try marketing the
Cunningham of Thornsett Homes: “With a those who have to spend the year preparing l With a huge anticipated shortfall in hotel rooms, property yourself by listing on cheaper paid-for adver-
two-year window it’s gotten very tight for for the games (tending the grass or oversee- rental prices are expected to rise nearly threefold dur- tising sites such as www.holiday-rentals.co.uk, where
construction delivery before the Olympics. ing building works, for example). ing the games. fees are £209 for the year.
If developers aren’t ready to start digging All of which means that for London buy- l Aim to provide a professonial service and be sure to l Look beyond the immediate area close to the Olympic
they’re not going to make that deadline.” ers trying to capture returns beyond the take all the same precautions you would take for a long- village: it will also be accessible from Victoria Park and
That means that buyers could benefit from vagaries of the housing market, east term rental: a proper contract (which can be found Greenwich should benefit from hosting the equestrian
constricted supply before the games. London should deliver good value and solid online), a deposit, IDs and take an inventory before the events.
Moreover, as the map on the right shows, returns.
 I M E A PA R T M E N T S I N
PR
PR I M E L O C A T I O N S
v i n g o r L o n d o n l e t t i n g
... f o r L o n d o n l i
. . .
e
LONDON SE8
Greenwich Creeksid
West Greenwich, many
1, 2 & 3 bedroom apartments in
utes walk to DLR and rail
with River Thames views. Six min
Canary Wharf and under
stations - under 10 minutes to
. Reserve now!
20 minutes to Bank for The City
r 2010.
Ready for move -in from Octobe
urday 10am - 6pm
Sales centre open Monday - Sat
00*
Prices from £240,0
Call: 020 8694 8186

LONDON E18
LONDON E8

Queen Mary’s Gate

minutes
Kinetica 3 bed roo m apa rtm ent s in the heart of South Woodford only 17
the new East London Luxury 1, 2 & landscaped
Hackney five minutes walk from 20 min ute s to Ban k for The City. 24 hour concierge,
1, 2 & 3 bedroom apartments in . from Liverpool Str eet and tion.
lston Junction. Six minutes journey time to Shoreditch for The City d par king and just ten min utes walk from a Central line tube sta
line tube station at Da gardens, secure - 5pm
only ay 10am - 6pm & Sunday 11am
Viewing strictly by appointment centre ope n Mo nda y - Sat urd
Sales
* 00*
Prices from £245,000 Prices from £197,5
Call: 0800 032 0077 Call: 020 8506 1955

(out of hours) 0800 032 0077 telfordhomes.plc.uk

*Prices correct at time of going to press. Photographs depict Queen Mary’s Gate and Kinetica. CGI of Greenwich Creekside.
 24 Living | The Knowledge CITYA.M. 30 JULY 2010

FOCUS ON: THORNTON HEATH, SURREY SELLING

Q&A
BY JESSICA MEAD

793 LONDON RD FLORIDA ROAD

Price: From £149,995
Taylor Wimpey has
launched the second
phase of its one and two-
bed flats within reach of
the train station. There
are just six two-bed flats
and two one-beds left.
Contact: Taylor Wimpey
on 01372 385800, www.
Price: £415,000
Located in the popular Russell Hunt
Americas estate, this MANAGING DIRECTOR,
smart four-bedroom PROPERTY HUNT
family home has a large
back garden. It is close Dear Russell, I am looking to
to Norbury Park and
several primary schools.
Contact: Haart on
Q. invest in a London property. Is
central London still the best
place to buy?
020 8689 0191,

A.
taylorwimpey.co.uk www.haart.co.uk It certainly makes sense to invest in
prime central London property
because at the end of the day it is
all about supply and demand. Yes, you will
pay a high price per square foot but it is all
about the rental yield.
You need to remember that location is
extremely important and that young profes-
sionals are prepared to pay more to be clos-
NEED TO KNOW | AREA INSIGHT er to where they work. This will give you a
much better return in the long term.
TREE TOPS Commuting: Thornton Heath mainline national average, especially for robbery. From a purely long-term point of view,
Price: £2.59m you’ll also get more capital growth – the lat-
This aspirational five- railway station is 25 minutes away est surveys suggest that a lot of central
bed property is in neigh- from Victoria. It is also close to Restaurants and Pubs: French London is still bucking the trend. Places like
bouring Shirley. Set into Norwood Junction, which is on the restaurant Le Cassoulet in nearby Bayswater are good – W2 is a good post-
the hillside, it has exten- newly-opened East London Line and Croydon opened its doors in 2008. code where you can get a bit more for your
sive grounds, a pool and about 23 minutes from Canada Water. The Victoria Cross is a traditional pub money.
far-reaching southerly with plenty of real ale on offer. Kensington & Chelsea and central areas
views. All the rooms are Schools: St James The Great RC just south of the river also offer good invet-
to a high specification. Primary and the David Livingston Parks and Leisure: Within spitting ment opportunities.
Contact: Hamptons on Primary are both strong at Key Stage distance of Crystal Palace FC and

01883 345255,
2. Old Palace School of John Whitgift
www.hamptons.co.uk is a good independent girls school and
Whitgift School is good for boys.
Q.
Crystal Palace National Sports Centre,
which will host some Olympics events
in 2012. Close to Norbury Park and
Dear Russell, we both work in the
City and are looking to buy a fami-
ly house. What would you advise?

A.
Mitcham Common, home to Mitcham When you buy a family home, the
Crime: Generally worse than the Golf Club. property of your dreams is simply
not enough. You also need to
research the schools in the local area and
see which catchment area your prospective
properties lie in.
CURRENT MORTGAGE DEALS BY JESSICA MEAD Source: MoneySupermarket.com For example, a lot of people who work in
the City and have children tend to live in
south London suburbs such as Clapham,
Lender Fixed/Flexible Rate Until Standard Rate APR Maximum Loan Tooting and even Balham. These are well-
(per cent) (per cent) (per cent) to Value (per cent) connected to the City – via the Northern
line – and Canary Wharf. Another area
which is well connected is Blackheath.
NatWest Flexible 2.19 To Aug 2012 4 4 60 The schools tend to be good but bear in
mind that you will pay more for streets
First Direct Flexible 2.29 Term 2.3 2.3 65 which just fall inside the catchment areas of
sought-after schools. Also check the waiting
ING Direct Flexible 2.29 2 years 3.5 3.5 60 lists and find out whether your child has a
Yorkshire BS Flexible 2.39 To Sep 2012 4.99 4.7 75 realistic chance of getting a place at this
school. Make sure that the catchment areas
The Co-operative Bank Flexible 2.49 To Nov 2013 4.24 3.9 75 haven’t recently changed – this can happen
frequently and you may get caught out.
HSBC Fixed 2.69 To Oct 2012 3.94 3.9 60 If you are after space and a garden, then
Balham and Tooting are probably your best
Santander Fixed 2.85 To Sep 2012 4.24 4.2 60 bets in terms of price per square foot.
Market Harborough BS Fixed 2.89 To Jul 2012 5.49 5.1 70 Russell Hunt is managing director of
Property Hunt, a search agent for London
Leeds BS Fixed 3.65 To Jul 2013 5.69 5.5 75 and the Home Counties. www.property-
hunt.co.uk
Yorkshire BS Fixed 3.99 To Sep 2015 4.99 4.8 75

PROPERTY NEWS
BY JESSICA MEAD

HIGH DEMAND TO KEEP FARMLAND PRICES UP
Increased demand for commercial farmland and a con-
tinued lack of supply are keeping rural land price high,
the latest Rural Land Market Survey from the Royal
Institution of Chartered Surveyors (RICS) will show
today. Over the past six months a net 47 per cent of
estate agents reported a rise rather than a fall in
demand for commercial farmland. Surveyors expect
farmland prices to continue rising over the next year
with commercial farmland to see the sharpest rises.
WINKWORTH OPENS COUNTRY HOUSE OFFICE
There’s no shortage of Londoners looking to escape to
the peace and quiet of the countryside. And to meet
their demands, estate agency Winkworth has just
opened a new country house department specifically to
offer a bespoke service for those moving out of London
or those selling their country property. The new depart-
ment will be based in West London and will serve as a
central office for Winkworth’s network of country
offices in places such as Bath and Northampton.
BARCELONA MARINA TO BE SUPER YACHT BASE
Plans are afoot to transform Barcelona’s marina into a
super-yacht base following the marina’s acquisition by
Salamanca Capital Investments, a Mayfair-based
investment advisory business. Salamanca said that
Marina Port Vell will become home to some of the
world’s largest privately owned yachts, with some
berths catering for vessels of up to 185 metres. It
added that redevelopment of the marina will com-
mence in the autumn and will be complete by mid-2011.
DIVORCE BEHIND 10PC OF PROPERTY SALES
Divorce is responsible for plenty of things but increased
property sales? New research from Savills shows that
couples untying the knot were responsible for one in 10
sales of properties worth between £500,000 and £1m
in the first six months of the year. Greater transaction
activity and higher prices in the first half of 2010
allowed divorces to proceed, said Lucian Cook, director
of residential research at Savills. When house prices
rise people typically feel they can afford to divorce.
CITYA.M. 30 JULY 2009 Living | Specialty Properties 25

Grape escapes: OLD LUXTERS

VINEYARD,
HENLEY
Price: £3.5m
A successful, award-

make the vineyard

winning winery and
brewery business
with a lovely farm-
house and cottage,
overlooking the
Hambleden Valley.

dream come true

Contact: Knight
Frank,
01491 844 900.

CHATEAU, GREVE IN
GERS CHINATI,
They’re beautiful and rewarding, but don’t Price: €2.7 TUSCANY
A rare 18th cen- Price: €5.75m
expect to make a fortune, says Zoe Strimpel tury “char- A vineyard of
treuse” with 42 2.7 ha., nearly
ha. of land half of which is

I
’D guess that at some point in your
career in the City you’ve sat back and
daydreamed about a life outdoors,
working the land, relaxing at sunset
on a terrace overlooking your vines and
sipping the product of your labour.
Vineyard properties are among the
most magical, particularly those in the
well-known grape regions of France and
Italy. But if you’re thinking of buying a
vineyard, first be absolutely sure about
what you’re after: a wine business, or a
lovely property with a few vines on the
side?
According to Rupert Fawcett, head of
Knight Frank’s Italian department, most
properties offer one or the other. Then
there’s the fact that you’ll probably have
to settle for making table wine even if you
do have loads of vines. “The types of vine-
yards producing really top quality wines
barely come to market,” says Fawcett.
“Therefore you need to be passionate
about wine-making for its own sake or
even for a bit of fun on the side.” Picture
the type of plonk you get in most
European village cafes – and imagine one
with your label on it.
So, given that the Krug estate is not
about to become available, the prospect of
making a fortune, either in terms of prop-
erty appreciation or the business, is far-
fetched. Having vines does add to a
property’s sale value, but the cost of car-
ing for them, either by you or by a hired
farmer if it’s not your primary residence,
is high. If you want to start afresh, replant-
ing vines and building a winery is enor-
mously expensive – new equipment can
cost a small vineyard £1m, and after 15
years of wear and tear, will not add value
to the property.
Therefore many wine-makers send their
harvest off to the local co-op for produc-
tion and bottling, then take their share of
the result. Not a bad compromise.
including appel-
lation contrôlée
grapes. Contact:
Gascony
Properties: 0033
562625406.
BRITISH VINEYARDS | WINE-GROWING AT HOME
An interesting, very zeitgeisty alternative to buying a
vineyard in Chianti is to buy one in...Henley. The UK has
been slowly rising through the ranks of all things oeno-
logical and is now producing top of the range bubbly
(some, like Nyetimber, costing more than a bottle of
Krug), whites and roses. Chapel Down’s Bacchus in Kent
and West Sussex’s Bolney Estate are both fine exam-
ples. Even Richard Balfour Lynn, CEO of of the
Alternative Hotel Group, which owns De Vere, produces
the award-winning Balfour Brut rose from his vineyard
Chianti Classico.
The villa is
deeply elegant
and luxurious.
Contact: Knight
Frank on 020
7629 8171.
Hush Heath, in Kent.
The English vineyard market is still small, says Toby
Milbank, of Knight Frank’s country department. But
because of the improvement in the wine, and the fact
that the UK now has some of the best wine-making
technology in the world, there’s more interest in buying
them. Unlike in Europe, Milbank says that most of the
British vineyards he sells are family-run businesses, fully
kitted up as wineries and sometimes breweries too –
therefore most buyers devote themselves to it full-time.

793 London Road

Croydon CR7 6AW

Just launched: ‘Phase 2’ – 2 bed, 2 bath apartments

with parking from £179,995
1 bedroom apartments available from £118,995

If 5.6% return NEW F

EO
RELEASOOM
2 BEDR ENTS
(First Time Buyer price*).
That’s just £466.33 per month!*

sounds good APARTM

to you, read on!

Our 2 bedroom, 2 bathroom apartments with parking are
great for investors and tenants alike – and with a 5.6% return,
they just got better.
Sales information centre and Showhome open
But hurry – there are only six 2 bedroom apartments available! Friday – Monday 11am – 6pm, Thursday 12 noon – 7pm

0845 026 5211

*Assumes borrower is aged over 18. Loan of £111,396 over 35 years on a repayment mortgage basis and payment of £466.33 which is a discount variable pay
rate for 2 years of 3.49% followed by lenders standard variable rate of 4.24% with monthly payment of £513.37. Typical APR is 4.3%. A mortgage application
fee of £250 is payable on application and refunded on completion and a lenders arrangement fee of £995 will be added to the loan. All loans subject to
status and valuation. Total amount payable is £214,044.56. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR
taylorwimpey.co.uk/swt
MORTGAGE. Selected plots only. Price correct at time of going to press. Computer Generated Image of 793 London Road.
 City Focus
26
The million euro silver lining
A financial spread betting firm
was born out of a sporting loss.
Kathleen Brooks tells the story.
T
HE final moments of a sports match
can be excruciating. Even more so if
you placed a heavy bet on one of the
teams to win. That was what hap-
pened to Conor Foley, an avid rugby fan,
when he watched New Zealand lose in a
shock defeat to France in the quarterfinals
of the Rugby World Cup in 1999.
“I never had exposure to losses like that
before,” says Foley. But that sickening expe-
rience, coupled with the dot-com boom,
had an even more dramatic effect on his
life. He quit his job as a head trader at
Banque Paribas in Dublin, Foley’s home-
town, and set up an online spread betting
firm.
“I decided that you couldn’t beat the
odds, so I jumped to the other side,” says
Foley. With his brother Michael and anoth-
er partner he set up SportsSpread in Dublin
in March 2000, a mere six months after
New Zealand crashed out of the World Cup.
The launch cost £250,000 – the trio’s own
money – most of which went on the
website and marketing. But it didn’t
exactly get off to a flying start. “I remember
the first day, I don’t think that we got a sin-
gle customer until about 4.30pm.”
A decade ago, the internet was fairly trial
and error. After an aborted online casino,
Foley hit the jackpot when he launched a
financial spread betting platform called
WorldSpreads back in 2003. “I had an eco-
nomics degree and my background was
currency trading, so it was what I knew.”
Until 2009, the company had two
brands: sports and financial, but last year
Social networking,
is it really worth it?
For the best results, Twitter or Facebook must
be used strategically, writes Kathleen Brooks
L
AST week Facebook, the social net-
working site, announced it had sur-
passed the 500m-user mark. So if you
want to reach half a billion people
then you should sign up, right?
It’s easy to get swept up in the buzz that
surrounds social media, but does all of that
posting and tweeting really have an effect
on a company’s bottom line?
Perhaps, says Jag Singh from
MessageSpace, the online political advertis-
ing website. He says that consumers are
more demanding these days and social net-
working is a good way to cater to these
demands. “There is lots of interest in how
companies are run behind the scenes –
how a product gets made – and social
media is a great way for consumers to
access this information.”
Ben & Jerry’s is a good example: “It
devised a marketing campaign directly for
Twitter and Facebook and invited
customers to devise new ice-cream flavours.
It was a great way for an established compa-
ny to build an affinity with its brand, which
they hope will convert to an increase in
sales of its ice cream,” says Singh.
| Entrepreneurs
Conor Foley, founder
of WorldSpreads
Picture:
Micha Theiner
/City A.M.
he sold the sports and Irish side of the busi-
ness for €12m to concentrate purely on
WorldSpreads. Foley held the role of group
CEO until earlier this month when he also
took over the day-to-day running of
WorldSpreads in London.
To say that he relishes the role is some-
thing of an understatement: “This is the
age of financial spread betting. It’s as per-
fect a product as it gets. There is leverage,
no capital gains tax, low transaction costs
and you can trade 24 hours a day.” The
company has grown from six employees in
2000, to more than 80 now across 14 loca-
tions. It listed on Aim, the London Stock
Exchange’s small cap exchange, back in
2007. And what about the future? He wants
to continue building “white label”, rev-
enue-sharing partnerships – it currently
has partnerships with Ladbrokes, Victor
Chandler and 188Bet – and developing the
business overseas.
But does it work for a small company?
Lexi Proud, the founder of online dating
website ArrangeMeADate.com, has
recently launched a Twitter meme called
#getbritaincourting. For the last two
weeks, Proud has tweeted dating advice
throughout the day and, so far, it has been
a success. “People have been following us
on Twitter and then going to our website,”
she says. And it has already had an effect on
her bottom line: “Hits on our website have
risen substantially and since the Twitter
campaign was launched we’ve seen a 12
per cent increase in membership.”
But to get these results you have to
make sure it is worth your followers’ mak-
ing the effort and visiting your website. For
example, Proud is running her Twitter
campaign alongside a promotion for a
month’s free membership to
ArrangeMeADate.com. Singh says that if
you want social networks to work for your
business then you have to treat them as
you would a more formal media
campaign: “It’s a science. You have to
squeeze as much as you can out of your
customers. So if you are using social media
CITYA.M. 30 JULY 2010
ACCOUNTS
Q.
I have just started a
new business and want
Q&A
to adopt the best practices for filing
my accounts. Do you have any advice?
A.
Each private company has to file its
accounts at Companies House, the
official government register of UK pri-
vate companies. The deadline is nine months
after the company’s financial year-end, so if
that is 31 December, you have to get your
accounts to Companies House no later than 31
September the following year. The key thing is
to get the basics right, says Sarah Shillingford,
a partner in Deloitte’s entrepreneurial business
group. “The first thing to do is to make sure
that you file them on time. When you are busy
running a business, nine months can pass by
very quickly. Penalties for late submission are
modest, but overall, if you have a history of fil-
ing accounts late, it won’t look good.” A bad
track record could come back to haunt you if
you decide you want to list on a stock
exchange or if you want to attract investors.
It’s also worth noting that there can be an ele-
ment of choice to the GAAP accounting rules,
for example the rule for when you book rev-
Although it’s obvious that Foley’s ambi- enues and the timing of booking revenues.
tions stretch beyond this (it’s given away in Shillington’s advice is clear: stick to the crowd.
his razor sharp focus and the plush office “Make sure you benchmark your accounts
in the City) he isn’t going to adopt the traits with your peers or other companies in your
of a super-charged boss: “I don’t get up sector. You need to make sure that you are
everyday and go for a run before 6am. I get aligned with the best practice in order to give
up at 8am, am in my office at 9am and put the best impression.”
in a full eight hours, although inevitably,
there is something happening to keep you
Q.
back in the evevning. Something like this I would eventually like to list, how
has to be a labour of love.” does the accounting process differ
for listed companies?
CV | CONOR FOLEY
A.
All private companies have to use UK
Age: 43 Life and Times of Denis O’Brien, by Generally Accepted Accounting
Home: London Siobhan Creaton. Principles (GAAP) accounting rules,
says Shillingford. However, all companies list-
Hobbies: Currently training for He is also the founder of the Irish ed on a publicly traded exchange have to use
his pilot’s licence in Florida: “the International Business Network the International Financial Reporting
weather is good there.” (IIBN): “Every successful business Standards (IRFS) when compiling their
accounts. So any company that is listing
Reading: A Mobile Fortune: The man can network well.” should be familiar with IFRS rules. If you are
planning to list then you will need at least two
years of past accounts that comply with IFRS
accounting rules. It is important to prepare
for this, says Shillingford: “You need to know
what your accounts will look like under IFRS
rules and if there will be any differences
between them and your GAAP accounts.”
Getting your financial house in order is imper-
ative before a listing. It’s not just accounts
that you need to consider when you are plan-
ning a listing; you also need to provide extra
financial and non-financial information for
your company prospectus. “You need robust
systems to make sure you can get that infor-
mation, so you’ll need to start planning at least
a year in advance. It will be a painful process
if you do it three months before.”
Q.
If I want to attract investors, what
information should I reveal to
Companies House?
A.
The only information required by
Companies House is fairly basic finan-
cial information. You can include more
detail, however Shillingford says you must be
aware that once the information is made pub-
lic you can’t take it private again. “If you want
to attract investors, it can be wiser to produce
a separate document – coupled with a confi-
dentiality clause – that includes information
about your future strategy or
revenue projec-
tions.” Make
sure you comply
with Companies
House rules,
but, equally,
don’t leave
yourself
Using a social to get people to visit your website then you exposed.
network can boost must make sure that it is perfect and func-
your bottom line tioning correctly.” Kathleen
To harness the power of social networks Brooks
Picture: make sure you apply the same level of com-
Micha Theiner mitment, skill and professionalism as you
/City A.M. would to any other marketing campaign.
 Lifestyle
Pity these fools – The A-team flops
Big action sequences
can’t save a pointless
remake of the 1980s
television favourite
Film
THE A-TEAM
Cert: 12A
Rhys Griffiths hiiii
A QUARTER of a century years after the
finale of the TV show, the A-Team blunders
its way into the twenty-first century – and
what should be a film providing two hours
of nostalgic, action-packed fun falls short of
even the simplest of tasks. Instead it’s
lengthy and boring.
There’s very little in the way of plot. We
meet the various members of the team,
headed by Liam Neeson (with a rubbish
grey hair-dye job) as Hannibal Smith with
Bradley Cooper (The Hangover) as
Templeton “Face” Peck, martial arts fighter
Quinton “Rampage” Jackson as B. A.
Baracus and Sharlto Copley (District 9) as
H.M. “Howlin’ Mad” Murdock making up
the numbers. Originally an army unit sta-
tioned in Iraq, they stick their oar in when
they aren’t wanted by retrieving some high-
ly coveted metal plates, get set up and face
prison terms. After breaking out of prison,
OUT THIS WEEKEND
PREVIEWS
FILM
KARATE KID Shame on you Jackie Chan. Remake
with Jaden “son of Will and Jada” Smith as the kid.
SOUTH OF THE BORDER Oliver Stone’s documentary
about South America’s left wing resurgence.
BEAUTIFUL KATE Harrowing, incest-themed
Australian drama, with Bryan Brown.
| Reviews
the A-Team set about clearing their names
in renegade style, which at one point sees
them fly a tank.
If that sounds like fun, it isn’t – there’s
just nothing to redeem this. Sharlto
Copley’s borderline insane Murdock is
probably the pick of the bunch, but with a
dreadfully underdeveloped plot there’s
absolutely no weight behind all the would-
be impressive action sequences. Fingers
crossed the inevitable sequel somehow
never happens.
GAINSBOURG
Cert: 15
Rhys Griffiths hhhhi
GRAPHIC novelist turned movie director
Joann Sfar makes his debut with this surre-
alist biopic of cult (at least on this side of
the channel) French singer and all round
king-of-cool Serge Gainsbourg. Delivered
with all the style and chic its subject matter
demands, the film treads close to style-over-
substance but is a largely successful story of
a remarkable life.
The film traces the journey of the young
Lucien Ginsburg from his Jewish childhood
in pre-Second World War France to his
transformation into the Brigitte-Bardot-dat-
ing, pop icon Serge Gainsbourg, portrayed
here brilliantly by Eric Elmosnino. Serge
smokes and seduces his way though
numerous women, the volume of which is
topped only by the amount of cigarettes he
gets through. Among his various lovers is
Jane Birkin, played by the young actress
DVD
CLASH OF THE TITANS Lame-brained Greek gods
and goddesses adventure, with Sam Worthington.
REMEMBER ME Romantic drama starring Robert
“Twilight” Pattinson, with Pierce Brosnan.
THE BOUNTY HUNTER Another rotten nail in the
coffin of the rom com, with Jennifer Anniston.
WHITE SANDS 27
PARADISE
THE MALDIVES IN
MONDAY’S TRAVEL
Lucy Gordon (who tragically killed herself
last year after filming). It’s a story of success
Above, the A-Team fail
to impress, unlike Eric
King James Bible decades later – arguably
the most influential work ever published
and excess, journeying through Serge’s
impressive back catalogue and culminat-
Elmosnino as Serge
Gainsbourg, above
in the English language, which Brenton
sees as finally drawing to an end the
ing in alcohol-induced derailment.
What saves Gainsbourg from amounting
right. Below, James
Garnon and Miranda
bloody hostilities between Protestants and
Catholics.
to a pretty formulaic, if educational, biopic,
is the stylistic presentation by director Sfar,
Raison in Anne
Boleyn.
Dramatic events for sure, and yet the
one thing this play is curiously short of ¬–
who marks himself as a talent to watch out for the most part – is drama. Anne herself,
for. There’s great imagination – Serge is fol- winningly played by Miranda Raison
lowed by an anti-Semitic caricature who (who is taking the same role in the
repeatedly pops up as the devil on his
shoulder, for instance – and Gainsbourg is
Globe’s concurrent production of
Shakespeare’s Henry VIII), mixes
visually entrancing. Whilst it might test hard-nosed ambition and religious
patience at just over two hours long, it’s passion beneath her slinky,
both an impressive debut and an elegant charming, notably fair (Anne
tribute to the man who for many epito- was famously dark in complex-
mizes Gallic cool. ion) exterior, but it’s not clear
which is really motivating her.
We learn even less of Henry’s
Theatre interior life (Anthony Howell),
as the play keeps skipping for-
ANNE BOLEYN wards years on an almost arbi-
Shakespeare’s globe trary basis.
By far the most interesting
Timothy Barber hhhii character and performance is
James Garnon’s King James I,
THERE’S political skulduggery, heresy, looking back at the reign of Anne
backstabbing, spying, adultery and no Boleyn as he attempts to marshal
shortage of theological and constitutional the religious forces of his own
squabbling in Howard Brenton’s new time. Gay, Scottish, Tourettes-
play, which uses the life of Henry VIII’s afflicted, and an outrageous
second wife to examine one of the most wit, he’s also a cerebral, stead-
cataclysmic periods in British history. fast politician. Garnon gives a
Brenton maps a line from the break virtuoso performance that’s
with Rome and the Reformation equal and opposite to the
under Henry (to enable his divorce sparse entertainment on offer
from Catherine of Aragon and mar- when he’s offstage. One looks for-
riage to Anne) to the drawing up of the ward to seeing more from this actor.
MUSIC GAMES
TOM JONES Album 39 for everyone’s favourite sep- STARCRAFT II: WINGS OF LIBERTY (PC) Long-in-
tuagenarian Welsh crooner, titled Praise and Blame. the-making sequel to the 90s gaming classic.
JEDWARD Right, they’ve done it, they’ve made an COMMANDER: CONQUEST OF THE AMERICAS (PC)
album, it’s called Planet Jedward. Now make it stop. Settle a colony in this strategy game. Poor natives.
THE MAGIC NUMBERS The indie pop band have BBC BATTLEFIELD ACADEMY (DS, PSP) Beeb-
made it to album three, The Runaway. sanctioned historical battle game.
 28 Lifestyle | Style CITYA.M. 30 JULY 2010

Tourbillon:
More than the ultimate
a simple complication
stopwatch I
F chronographs are at one end of the
complications scale, at the other you
find the tourbillon. Originally devel-
oped by the Abraham-Louis Breguet in
the 18th century, it’s designed to lessen the
effect of gravity and motion on the watch’s
Luxury chronographs are worth accuracy by mounting the escapement and
balance wheel – which transform the inner
their price, says Timothy Barber workings into regular, timekeeping motion
– in a rotating cage. Put more simply, it’s
exceptionally complicated and delicate.
BREGUET CLASSIQUE ZENITH STRIKING Normally housed in an opening in the
WATCH that tells the time is one thing. A watch that tells 10TH EL PRIMERO watch face, the tourbillon is the calling

A the time, the date, the temperature and has an alarm and
stopwatch is – well, child’s play in the world of digital tech-
nology, but really rather impressive in a hand-made, hand-
wound mechanical piece.
It’s not for nothing that such features on mechanical watches
are called complications. The most common complication is the
chronograph – basically a stopwatch function. Smaller dials will
measure seconds, minutes and sometimes hours, while allowing
for endless variations on the theme.
Of course if you need an accurate stopwatch you can use your
phone, but to dismiss chronographs on that basis is to miss the
point. Chronographs, thanks to those smaller dials, are aesthetical-
ly beautiful, stylistically sophisticated and the basic benchmark of
the engineering complexity which defines haute horlogerie.
Mayfair shop William & Son on Mount Street
is now selling watches from the prestigious
Breguet brand. This tidy number, with indent-
ed enamel face and spiralling red tachometer
dial, may just be the pick of the bunch.
£27,500 www.williamandson.com
Having been a pioneer in chronograph move-
ments, Zenith has raised the bar further with
this watch, the second hand of which actually
card of prestige watchmaking and a plat-
form for even more extreme innovation.
And that adds a lot of zeros onto the price.
Here are a couple of ultra-rare tourbillon
watches that happen to be for sale in
moves in tenths of a second. London right now – though you’ll only find
£6,995 www.zenith-watches.com one of each. At William & Son in Mayfair
(www.williamandson.com) is the Brequet
Tradition Fussé [top], made using anti-mag-
netic silicium and one of only three such
A LANGE & watches so far made. It costs £113,800.
At the New Bond Street shop of Jaeger Le
SOHNE Coultre (www.jaeger-lecoultre.com), mean-
1815 while, there’s one version left of the
Reverso Gyrotourbillon 2, with its extraor-
We love the crisp, flow- dinary cylindrical tourbillon. It’s £232,000.
ing design, smart colours
and the cool “flyback” BREGUET TRADITION FUSSÉ 7047
functionality of the
German company’s brand
new chronograph.
£28,500
www.alange-soehne.com

JAEGER-LE COULTRE DUOMETRE

CHRONOGRAPH
A supremely smart watch employing Jaeger-Le Coultre’s “dual-wing”
mechanism, containing two independent power reserves.
£25,550 www.jaeger-lecoultre.com

JAEGER-LE COULTRE REVERSO

GYROTOURBILLON 2

PATEK PHILIPPE MONTBLANC

REF 5170J
Newly released this year, Patek’s new chrono-
HERMES ARCEAU EBONY graph is a true connoisseur’s piece, with its
A watch mixing chronograph functionality with classic Hermes ele- clean stylings in yellow gold and the classical
gance, including the trademark sloping numerals of the Arceau range. beauty of the watch face.
£3,180 www.hermes.com £46,560 www.patek.com
STAR 4810
Once known only for its fountain pens,
Montblanc has successfully navigated its way
into the world of luxury watches, as this
rather suave chronograph shows.
£11,200 www.montblanc.com

W
HY would you want to draw
SOCKS IN THE CITY attention to a skinny, some-
times hairy piece of leg
between your trousers and
your shoes? Is it because you’re particu-
and one pair of royal blue ones.
I’m all for pulling focus to your good
points and making the most of your
most attractive assets, whatever they
are. Certainly in the office you should
avert my gaze away from those socks.
Guiding other people’s eyes firmly to
your ankle means they’ll scrutinize your
shoes and trouser length, so you’d bet-
ter be confident that they’re perfect.

Sara larly fond of the knobble on your ankle

and it warrants extra attention? Or that
you feel that the five inches in question
Hollamby needs cheering up?
After David Beckham’s appearance on
last Friday’s Jonathan Ross when he
Style flashed his red socks from underneath
his very dapper (and I’m sure very costly)
Counsel suit, I have been flashed at, at least four
times in the City, with red socks. Oh,
draw the eye towards your most valu-
able tools of communication, your eyes
and smile, by wearing coloured acces-
Personally I’d be more inclined to splash
the colour with a striking tie which
points to your face – a much more pleas-
sories or ties that will enhance your fea-
tures, and shapes that flatter your
ant lasting memory. Sorry Becks: this is
one fashion statement I advise you all
neckline. not to follow. (I liked the hair-do
Of course Becks has one of those faces
that your eyes get glued to, red socks or
though…!)
Sara Hollamby is a business image consultant
not, but we’re not all as good looking as
him, and even then, I found it hard to
with WorkingVoices.com.
Email sara@workingvoices.com
CITYA.M. 30 JULY 2010 Lifestyle | TV& Games 29

BBC1 BBC2 ITV1 CHANNEL4 FIVE TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm DIY SOS; BBC News
8pm EastEnders
8.30pm Celebrity MasterChef
9pm My Family
9.30pm CHOICE The Old Guys
10pm BBC News
10.25pm Regional News
10.35pm Would I Lie to You?
11.05pm National Lottery Draws
11.15pm FILM Derailed;
Weatherview
1am Sign Zone: Celebrity MasterChef
2am Celebrity MasterChef 2.30am
Monty Halls’ Great Hebridean Escape
3.30am Put Your Money Where Your
Mouth Is 4.30am-6am BBC News
5.15pm Live Athletics:
European Championships: The
evening session on day four in
Barcelona.
9pm Gardeners’ World: Tips on
how to make a footpath and a
bench.
10pm CHOICE How Not to Live
Your Life: Don questions his
sexuality.
10.30pm Newsnight; Weather
11.05pm That Mitchell and
Webb Look
11.35pm Shooting Stars
12.05am Rev
12.35am FILM Lovely and
Amazing: Comedy drama,
starring Brenda Blethyn. 2001.
2am-6am Close
6pm London Tonight
6.30pm ITV News
7pm Emmerdale:
7.30pm Coronation Street
8pm Dickinson’s Real Deal
8.30pm Coronation Street
9pm Doc Martin: Al tries to
raise some quick cash.
10pm ITV News at Ten
10.30pm London News
10.35pm FILM Open Water:
Thriller, starring Blanchard
Ryan and Daniel Travis. 2004.
12.10am The Zone; ITV News
Headlines
2.10am FILM The Land That Time
Forgot: Prehistoric adventure,
starring Doug McClure. 1974.
3.45am-5.30am ITV Nightscreen
6pm The Simpsons 6pm Home and Away
6.30pm Hollyoaks 6.25pm Don’t Stop Believers
7pm Channel 4 News 6.30pm Live from Studio Five
7.25pm 4thought.tv 7.15pm Cricket on Five
7.30pm CHOICE One Under 8pm Nature Shock: The
8pm A Place in the Sun: Home mysterious deaths of five
or Away elephants near a Bengali village
9pm Big Brother in 2007; Five News at 9
10pm The IT Crowd 9pm The Mentalist: A suspected
10.35pm Big Brother serial killer is on the loose.
11.25pm Stand Up for the Week 10pm CSI: NY THE OLD GUYS
12.10am Music on 4: Florence 10.55pm Don’t Stop Believers BBC1, 9.30PM
and the Machine Live at the 11pm Grey’s Anatomy Tom and Roy try to impress Sally when
Hammersmith Apollo 12am SuperCasino she is forced to move in with them on a
12.45am Music on 4: 4Play: 4.05am Motorsport Mundial temporary basis due to a burst pipe in
Hurts 4.30am House Doctor 4.55am her bathroom.
1am Big Brother: Live 4.25am This Animal Rescue Squad 5.10am The
Week’s 4Music Top 20 5.25am- New Tomorrow 5.35am-6am
6.15am Countdown Michaela’s Wild Challenge

SKY SPORTS 1 BRITISH EUROSPORT 4.40am 60 Minute Makeover HISTORY DISCOVERY HOME &
SATELLITE & CABLE

5.05am Nothing to Declare

7pm Football’s Greatest
7.30pm Live Super League
Leeds: Rhinos v Wigan
Warriors (Kick-off 8.00pm).
10pm Football’s Greatest
10.30pm Test Cricket 12.30am
Super League 2am Test Cricket
4am Super League 5.30am-
6am Football’s Greatest
SKY SPORTS 2
7pm Tight Lines 8pm Test
Cricket 10pm WWE: Late
Night – Smackdown 12am
WWE: Late Night – Bottom
Line 1am NFL: Total Access
2am Ocean Ride 2.30am World
Sport 3am Show Jumping
5am-6am NFL: Total Access
SKY SPORTS 3
7pm NFL: Total Access 8pm
Live PGA Tour Golf 11pm Live
US Seniors Tour Golf 2am
European Tour Golf 3.30am
Golfing World 4.30am Ocean
Ride 5am-6am Tight Lines
5.15pm Live Athletics 9.15pm
Athletics: Photo Finish 9.45pm
UEFA Under-19s Championship
Football 11pm Athletics 12am-
12.30am World Touring Car
Championship
ESPN
7.15pm Live Premiership Rugby
Sevens Series 10.30pm The
Ultimate Fighter 12.50am Live
Caribbean Twenty20 Cricket
4am This Week in Baseball
4.30am-5am ICC Cricket
World
LIVING
7pm Bulging Brides: A
Portuguese woman struggles
to fit into her dress. 8pm
Passport Patrol 9pm Medium
10pm CSI: Miami 11pm
Criminal Minds 12am CSI:
Crime Scene Investigation
2am So You Think You Can
Dance 3am The Fresh Prince of
Bel-Air 3.50am Maury
5.30am-6am Home Shopping
BBC THREE
7pm Doctor Who 8.05pm
Doctor Who Confidential
8.30pm EastEnders: The
Murders of Lucas Johnson
9.30pm Mongrels 10pm
EastEnders 10.30pm
EastEnders: The Murders of
Lucas Johnson 11.30pm Family
Guy 12.20am Young, Dumb
and Living Off Mum 1.20am
Mongrels 1.50am The Real
Hustle: Celebrity Scammers
2.50am Alice and Her Six Dads
3.45am-4.45am Young, Dumb
and Living Off Mum
E4
7pm Hollyoaks 7.30pm Friends
9pm Supernanny 10pm
Supersize vs Superskinny
11.05pm Rude Tube 11.20pm
Big Brother’s Big Mouth
12.25am-6am Big Brother: Live
7pm The Six Wives of Henry HEALTH
VIII 8pm Holy Grail in 7pm From Here to Maternity
America: Investigating
whether the Knights Templar
8pm 10 Years Younger 9pm 18
Kids and Counting 10pm Little
discovered America. 10pm
People, Big World 11pm HOW NOT TO LIVE YOUR LIFE
Combat School 11pm The Mystery Diagnosis 12am 18 BBC2, 10PM
Sinking of the Royal Oak 12am Kids and Counting 1am Little
Holy Grail in America 2am The
Don is forced to question his sexual
People, Big World 2am Mystery preferences when he wakes up in bed
Six Wives of Henry VIII 3am
Diagnosis 3am 10 Years with Samantha’s brother after a night
Arctic Disaster 4am-5am The Younger 4am Baby Days 5am-
of heavy drinking.
Sinking of the Royal Oak 6am Multiple Mums
DISCOVERY SKY1
8pm How Do They Do It? 8pm Top 50 Showbiz
8.30pm How It’s Made 9pm
Comebacks: Second chances at
Clash of the Dinosaurs: The fame. 10pm Lie to Me: Cal
animals of the Cretaceous investigates the attempted
period. 10pm How the Universe assassination of a Governor.
Works 11pm Egypt’s Mystery 11pm Bones: Crime drama,
Chamber 12am Deadliest Catch starring Emily Deschanel. 12am
1am Bear Grylls: Born Survivor Bones 1am Night Cops 1.50am ONE UNDER
2am Industrial Revelations Border Invasion USA 2.40am CHANNEL4, 7.30PM
3am Stephen Hawking’s Road Wars 3.30am Shear Lucy Bennett’s documentary exploring
Universe 4.40am Days That Genius 4.20am Project Runway suicide on the London underground,
Shook the World 5.30am-6am 5.10am-6am Are You Smarter examining what impact it has on staff
How Does That Work? Than a 10 Year Old? and the relatives left behind.

COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
    

SUDOKU KAKURO
5 32 10 33 9 16 15 
12 6 10
16 21   
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none of which may be plurals, foreign words or
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 Sport
30
Idowu hunting 2012
glory after Euro gold
ATHLETICS
▲
BY FRANK DALLERES
BRITISH triple-jump king Phillips
Idowu immediately targeted victory
at the London 2012 Olympics after
adding European Championship gold to
his burgeoning collection.
Idowu cemented his reputation as
the man for the big occasion last night
in Barcelona by blowing away his rivals
with a personal best leap of 17.81m.
Frenchman Teddy Tamgho, who had
been tipped to challenge Idowu (right),
could only manage 17.45m and had to
make do with bronze, behind
Romania’s Marian Oprea (17.51m).
Londoner Idowu’s success
added to his Commonwealth and
World golds, meaning only
Olympic glory has evaded him –
something he intends to put right
on home soil.
ETF SECURITIES
CITY TOUCH TOURNAMENT
FRIDAY 6TH AUGUST 2010
VENUE:
V E
HAC | ARTILLERY GROUND
H
CITY ROAD | LONDON | EC1Y 2BQ
C
- 3.30PM REGISTRATION,
4.00PM KICK OFF
- PROFESSIONAL PLAYER
COACHING EACH TEAM
- ENTRY FEE – £600 PER TEAM
(+vat; up to 10 members)
- £5 PER SPECTATOR
(all spectator proceeds to charity)
OPPORTUNITY TO MEET THE STARS FROM LONDON’S
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O CLUBS - HARLEQUINS RL AND
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NDON SKOLARS
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www.e
IN ASSOCIATION WITH:
HUGHES MOVES INTO THE COTTAGE
“There is one more medal in my
career I need to win and that will
come in a couple of years,” he
said. “I’ve worked hard for this,
people think I’m a lucky ath-
lete, but I’m not lucky, I’ve
been doing this for 10 years
now. I win gold medals.
That’s what I do.
Hopefully now people
will stop doubting me.”
Idowu had been short of form
this year while Tamgho, 21,
jumped a world-leading 17.98m
last month, and he added: “I knew I
Torn Fabregas set
would have to do a big jump to win
here but me and my coach got it
right and we planned for this day.”
Earlier, Britain’s Martyn Bernard
claimed a superb bronze medal in the
high jump, while Mo Farah and Chris
for Gunners return
Thompson both booked their places in
Sunday’s 5,000m final.
▲
FOOTBALL
BY FRANK DALLERES
ARSENAL captain Cesc Fabregas
admits he is torn by his love for
Barcelona and a sense of duty to
the Gunners as he prepares to
return to north London.
Fabregas has seldom spoken
about his desire to move back to his
native Catalonia during a summer
of uncertainty over the 23-year-old’s
future.
But he is set to come face-to-face
with Arsene Wenger again in the
next few days, possibly even at this
weekend’s Emirates Cup, which he
is likely to attend as a spectator.
Ngog double gives Roy perfect start
RABOTNICKI
LIVERPOOL
▲
EUROPA LEAGUE FOOTBALL
BY FRANK DALLERES
LIVERPOOL striker David Ngog
struck twice to get Roy Hodgson’s
reign as manager off to a winning
start in Macedonia.
Results
ATHLETICS
IAAF EUROPEAN CHAMPIONSHIPS (Barcelona, Spain):
High Jump Final: 1 Aleksander Shustov (Rus) 2.33m, 2
Ivan Ukhov (Rus) 2.31, 3 Martyn Bernard (Gbr) 2.29.
Triple Jump Final: 1 Phillips Idowu (Gbr) 17.81m, 2 Marian
Oprea (Rom) 17.51, 3 Teddy Tamgho (Fra) 17.45.
FOOTBALL
co.uk
UEFA EUROPA LEAGUE THIRD QUALIFYING
ROUND - FIRST LEG
Aalesund 1 Motherwell 1, Maribor 3 Hibernian 0, Maritimo 8
Bangor City 2, Rabotnicki Kometal 0 Liverpool 2, Shamrock
Rovers 0 Juventus 2.
CITYA.M. 30 JULY 2010
MARK HUGHES
has pledged to
“move Fulham for-
ward in the right
direction” after
being confirmed as
the Premier League
club’s new manag-
er last night. The
former Manchester
City boss has
signed a two-year
contract at Craven
Cottage and has
already been
linked with Aston
Villa defender Luke
Young.
Picture: ACTION
IMAGES
And amid suggestions he will ask Emirates Cup, but made his frustra-
Wenger for a second time to let tion at Barca’s relentless public
him leave, having seen Arsenal
reject Barca’s opening £30m offer,
pursuit of Fabregas plain this week
when he dismissed the Spaniards’
Fabregas has revealed why he latest overtures as “noise”.
yearns to rejoin the blaugrana.
“I’m a Barca fan, I’m a socio [club
And his skipper admits he owes a
debt of gratitude to the
member], as is my grandfather, my Frenchman, adding: “He is a sec-
uncle, my cousin,” the midfielder ond father for me, the most impor-
told a Spanish magazine. tant person in my life after my
“I have felt the colours from a father. He has behaved really well
young age, I’m Catalan. However, with me and taken me in like a son.
I’m the captain of Arsenal, I’m a I am part of his family. He doesn’t
Gunner, and I have become a player want me to leave. And in my last
there and matured as a person.” conversation with him in London,
Wenger is expected to address it was one of the most difficult
the situation today when he holds moments I have experienced. I
a media conference ahead of the ended up very upset.”
Ngog pounced on a defensive There was no doubting Ngog’s
0 error after 18 minutes to put a cal-
low Reds side ahead and volleyed a
sharpness, however, with the
Frenchman who scored eight times
second before the hour. last season going some way to
2 “Ngog has done well in all the
games he has played for me,” said
equalling that in just 90 minutes.
The 21-year-old began the first
Hodgson. “Tonight he crowned his double of his Liverpool career by
performance with two goals and capitalising on a defensive slip to
that’s what strikers need to do.” poke past goalkeeper Martin
Hodgson was forced to name a Bogatinov. Ngog then sealed victory
team missing 10 of his tired World when full-back Martin Kelly made
Cup stars, including Steven Gerrard space to cross from the right and
and Fernando Torres, for the third the forward stroked home a classy
qualifying round, first leg fixture. near-post volley.
FRIENDLY MATCHES: Club America 1 Man City 1 (Man RICOH WOMEN'S BRITISH OPEN (RoyalBirkdale Golf Club,
City win 4-1 on penalties), Gillingham 1 Hearts 2, Kendal Tn
1 Darlington 2, MLS All-Stars 2 Man Utd 5.
GOLF
EUROPEAN TOUR IRISH OPEN (Killarney, Co Kerry)—1st rnd:
Southport)—1st rnd: 68 Yani Tseng (Tai), Katherine Hull (Aus). 69
Sun Young Yoo (Kor), Anna-Lise Caudal (Fra), Brittany Lincicome
(USA), Amy Yang (Kor). 70 Michelle Wie (USA), In-Kyung Kim
(Kor). 71 Stacy Prammanasudh (USA), Jiyai Shin (Kor), Stacy Lee
Bregman (Rsa), Juli Inkster (USA), Stacy Lewis (USA), Brittany
(Gbr & Irl unless stated, par 71): 64 David Howell. 65 Damien Lang (USA), Gwladys Nocera (Fra)
McGrane, Richard Green (Aus). 66 Jean-Baptiste Gonnet (Fra),
Seung-yul Noh (Kor), Anton Haig (Rsa), Marcel Siem (Ger), Darren
Clarke, Brett Rumford (Aus), Paul Lawrie, Gonzalo Fdez-Castano TODAY’S DIARY
(Spa), Michael Hoey. 67 Martin Wiegele (Aut), Francesco Molinari (Football 7.45pm unless stated)
(Ita), Anders Hansen (Den), Francois Delamontagne (Fra), Friendly Matches: Altrincham v Tranmere, Brentford v Crystal
Andrew Dodt (Aus), Johan Edfors (Swe), Danny Lee (Nzl), David Palace (8pm), Cheltenham v Wolverhampton, Fleetwood Tn v
Drysdale, Rory McIlroy, Eirik Tage Johansen (Nor), Mark F Bolton XI, Grimsby v Lincoln City (7.30), Oxford City v Oxford Utd,
Haastrup (Den), David Dixon Gateshead v Newcastle XI (7.30), Benfica v Feyenoord (9.15).
SPORTS EDITOR JON COUCH
email sport@cityam.com
CITYA.M. 30 JULY 2010
Hero Morgan
hits maiden
Test century
▲
CRICKET
BY JON COUCH
EOIN MORGAN told of his pride after
a magnificent maiden Test century
put England in control of the first of a
four-match series against Pakistan at
Trent Bridge.
The Irish-born batsman, playing in
only his third Test, smashed 125 not
out in a record fifth-wicket partner-
ship with Paul Collingwood (81no) as
England recovered from a wobble to
end the day on an imposing 331-4.
“It’s extremely satisfying, to score a
Test match hundred in only my third
game,” Morgan raved. “It’s a great
achievement, and I’m very proud of
myself. The feeling of getting to three
figures was fantastic. It was a huge
moment in my career.”
But while England toast Morgan’s
arrival in the five-day arena, concerns
remain over out-of-form duo Kevin
Pietersen and Alastair Cook, who
made nine and eight respectively as
they crashed to 118-4 at one stage.
Just like against Australia last week,
18-year-old bowling sensation
Mohammad Aamer was Pakistan’s
instigator, enhancing his glowing rep-
utation with the wickets of Cook,
Jonathan Trott (38) and captain
Andrew Strauss (45) in a devastating
morning session, before Pietersen was
clean bowled by his strike partner
Mohammad Asif. That left Morgan
and Collingwood at the crease and
they transformed the game with a
remarkable unbroken stand of 213.
“The major fact of my innings was I
allowed myself to get in, in difficult
circumstances,” Morgan added. “Paul
and I set up a great platform for our-
selves, getting past that swing ¬- and
then took advantage when the wicket
went flat and the ball a bit soft.”
Morgan was justifiably proud of his
innings, given he was desperate to
make an impression ahead of the win-
ter Ashes series Down Under, and
never doubted he could step up from
limited-overs starlet to Test hero.
The Middlesex left-hander said:
“I’m quite a confident player, and a
guy who likes expressing himself.”
Sport 31
SPORT | IN BRIEF
Illustrious victory for Knight
RACING: William Knight-trained
Illustrious Blue was the big winner on
day three of Glorious Goodwood after
winning the Artemis Goodwood Cup.
The 8-1 shot, ridden by Jim Crowley,
beat off Electrolyser (33-1), Purple Moon
(13-2) and odds-on favourite Age of
Aquarius into the places.
Meanwhile, Kieren Fallon led veteran
Borderlescott (9-2fav) to a half-a-length
victory in the Audi King George Stakes
after seeing off fast-finishing pair Group
Therapy (8-1) and Astrophysical Jet (7-1).
Massa: I’m no No2 to Alonso
FORMULA ONE: Felipe Massa insists he
is not playing second fiddle to Ferrari
team-mate Fernando Alonso despite
being made to allow the Spaniard to
pass in last Sunday’s German Grand Prix.
“The time I say I’m a No2 driver, I will
not race anymore,” said Massa ahead of
this weekend’s Hungarian Grand Prix.
SCORECARD | ENGLAND (1ST INNINGS) “I’ve spoken to everyone inside the
team and I’m not just here to race, I’m
A Strauss c K Akmal b Aamer 45 here to win.”
A Cook c Farhat b Aamer 8
J Trott lbw b Aamer 38 Howell leads Irish Open
K Pietersen b Asif 9 GOLF: England’s David Howell rolled
back the years with a seven-under-par
P Collingwood not out 81 64 to take the overnight lead on the
E Morgan not out 125 opening day of the Irish Open.
Extras (7nb 5w 5b 8lb) 25 Howell, without a Tour win in four
years, leads Australian Richard Green
TOTAL (4 wkts, 90 overs) 331 and South Korea’s Seung-yul Noh by a
Fall: 42, 93, 116, 118 shot, while Darren Clarke is among a
Bowling: Aamer 19-4-39-3, Asif cluster of players a further stroke adrift.
20-6-65-1, Gul 16-4-58-0, Kaneria 21-0-100-0 Briggs next up for Klitschko
Shoaib Malik 11-2-39-0, Ali 1-0-9-0, Amin 1-0- BOXING: Vitali Klitschko will defend his
3-0, Farhat 1-0-5-0 WBC heavyweight crown against for-
mer WBO champion Shannon Briggs,
Morgan shared a record unbroken stand of 213 with Collingwood. Picture: GETTY possibly in Hamburg, on 16 October.
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