BUSINESS WITH PERSONALITY
WHY BOVIS HOMES IS
Issue 1,228 Monday 27 September 2010
CITY SAYS RED ED
IS ANTI-BUSINESS
POLITICS
▲
BY DAVID CROW AND VICTORIA BATES
ED MILIBAND’S policies could have
“very serious consequences” for the
economy, a City pressure group
warned yesterday, after the new
Labour leader used his first major
interview to launch a scathing attack
on bankers.
Ed Miliband, who beat his brother
David in the race to become Labour
leader by mopping up trade union
votes, yesterday said he would increase
taxes on banks and bankers to help cut
the deficit.
“I think we can do more on taxation
from banks. Why is it is important to
take more from the banks? They
caused the crisis,” Miliband said in an
interview with the BBC’s Andrew Marr.
He added: “Of course for people cre-
ating wealth there need to be incen-
tives, but for people destroying wealth,
people were rightly appalled by that.”
The new Labour leader said, if elect-
ed, he would make the 50p tax rate
permanent and try to narrow the gap
between the wealthiest and poorest by
introducing a High Pay commission
and a new higher living wage.
In his leadership campaign,
Miliband also argued for a financial
transactions levy or “Tobin tax”.
But yesterday Stuart Popham, chair-
man of lobby group TheCityUK and
senior partner at law firm Clifford
Chance, said such policies could dam-
FTSE 100 ▲5,598.48 +51.40 DOW ▲10,860.26 +197.84 NASDAQ ▲2,381.22 +54.14 £/$ ▲1.58 +0.01 £/¤ t1.17 -0.01 ¤/$ ▲1.35 +0.02
STOCKPILING LAND
WE TALK TO ITS CEO
Ed Miliband beat his brother in the Labour leadership race thanks to trade union support
age the British economy.
He said: “Each of these policies
would have an impact individually,
but their aggregated impact could
lead to very serious consequences for
our economy.”
Tim Linacre, chief executive of stock-
broker Panmure Gordon, said the
Labour party needed to “recognise the
importance of business in generating
wealth to tackle the deficit”.
He added: “Many of the policies he
ROO’S WOES
www.cityam.com
has proposed have the potential to
drag Britain back very far indeed, and
such an anti-business position is mad-
ness. I think and hope that there will
be quite a significant change in Ed
Miliband’s position as Labour leader
rather than as a leadership hopeful.”
Meanwhile, Miliband sounded the
death knell for New Labour, insisting:
“The era of New Labour has passed, a
new generation has taken over.”
He distanced himself from former
P17
Picture: REUTERS
chancellor Alistair Darling’s plan to
cut the deficit in half within four
years. “I think as far as Alistair’s plan is
concerned we should keep looking at
that plan and see how to improve it.”
And he said Tony Blair was wrong to
say bank regulation had gone too far
since the crisis. “New Labour got stuck
in an orthodoxy that deregulation was
the answer. We need to be reformers.”
LABOUR LEADERSHIP: ALLISTER
HEATH P2: MORE ON PAGES 4-5
CONTINUE
UNITED MISS THE
CHANCE TO CLOSE
THE GAP P31
FREE
HSBC faces
shareholder
criticism
▲
BANKING
BY VICTORIA BATES
INVESTORS in HSBC, still reeling from
one of the most poorly-handled suc-
cession processes in the bank’s histo-
ry, have highlighted pressing concerns
over the appointment of finance
director Douglas Flint as chairman.
Flint’s appointment to steward the
bank has sparked fears over the extent
to which the former executive can be
truly objective in the future, given that
he has not come in to chair the bank
from outside it.
One shareholder said: “There’s an
elephant in the room and that’s Flint.
The chairman must be able to chal-
lenge decisions and hold the board to
account, especially at difficult times,
and it’s hard to see how Flint can do
that having worked so closely in the
past with Stuart Gulliver.”
Gulliver, HSBC’s head of investment
banking, replaces Michael Geoghegan
as chief executive at the end of the
year. Though he and Flint are widely
respected in the City, with a combined
45 years of HSBC experience behind
them, investors have also voiced dis-
content over the way HSBC’s board,
led by senior independent non-execu-
tive Sir Simon Robertson, handled the
appointments.
It now looks as if the former
Goldman Sachs veteran John
Thornton will also be leaving the
bank after missing out on the chair-
man’s role. Thornton would be
missed for his experience in south-
east Asia in particular.
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 2 News
Britain is moving back to the old Left
EDITOR’S LETTER
ALLISTER HEATH
SLOWLY but surely, Britain’s political
landscape and broader culture are
reverting to type. Tony Blair and
Margaret Thatcher’s legacies are being
consigned to history. In key respects,
Britain is turning back the clock. This
is a hugely important development,
unique to the UK; no other country
appears as eager to re-embrace the nos-
trums of the 1970s.
Under Blair, the Labour Party turned
its back on hardcore socialism, class
war and traditional tribal politics,
becoming instead a more centrist,
social-democratic party committed to
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Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Business Features Editor Marc Sidwell
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WHAT THE OTHER PAPERS SAY THIS MORNING
GOLD SALES AT EUROPEAN CENTRAL
BANKS DRAW TO HALT
Europe’s central banks have all but
halted sales of their gold reserves,
ending a run of large disposals each
year for more than a decade. The cen-
tral banks of the eurozone plus
Sweden and Switzerland are bound
by the Central Bank Gold Agreement,
which caps their collective sales.
LOCAL TV NEEDS FINANCIAL LIFELINE
A government-backed plan to set up a
network of local television stations
will probably fail unless it secures
funding beyond advertising revenue,
an expert panel studying the idea has
warned ministers. The panel, headed
by the investment banker Nicholas
Shott, said the network is likely to
have to be rolled out in two phases –
the first in about a dozen urban areas
and the second in the rest of the
country
social mobility, wealth-creation and
enterprise as much as redistribution
and increased spending. That shift was
almost as important as Thatcher’s
takeover of the Conservatives and her
transformation of Britain’s economy
and society. A new, post-1979 settle-
ment emerged for Britain: for the first
time since the 19th century, both gov-
ernment and opposition supported
variants of capitalism; both parties
accepted that private enterprise, free
trade and personal ambition were the
driving force of progress; both increas-
ingly blurred the line between the
state and the private sector when it
came to delivering taxpayer-financed
health, education and welfare.
This consensus, which crumbled as
Blair lost control of the domestic agen-
da years ago, and ran into trouble
when Gordon Brown became prime
minister in 2007, is now officially over.
Ed Miliband, Labour’s new leader, pro-
claimed the death of New Labour yes-
terday; his policies are as incompatible
with Blairism as they are with
Swiss banks go
beyond Basel
REGULATION
▲
BY MARION DAKERS
SWISS regulators will ask UBS and
Credit Suisse to go above and beyond
the Basel III banking rules this week,
according to reports yesterday.
A commission of experts looking
at whether the banks are still too big
to fail will publish a report on
Thursday proposing Switzerland’s
two largest banks should hold core
capital of around 12 per cent, up to
five per cent more than their
European peers.
The commission could make its
recommendations public as early as
today, according to a local newspa-
per, while the Swiss government is
expected to discuss the proposals on
Friday.
The Basel III rules require banks to
hold core Tier 1 capital worth at least
LLOYD’S INSURERS TURNED DOWN
GAMES
Insurers in the Lloyd’s of London mar-
ket said they would not provide cover
to ticket sellers, broadcasters or mer-
chandise producers for cancellation
or disruption of the Commonwealth
Games in New Delhi due to a lack of
information about infrastructure and
security threats, according to under-
writers.
MILIBAND HINTS AT TAX FOR GRADUATES
Graduates could face having to pay
up to 2 per cent of their income to
fund degrees under a future govern-
ment led by Ed Miliband, it has
emerged, in spite of Alan Johnson,
the former home secretary, condemn-
ing the idea. The new Labour leader
said on Sunday he could envisage a
system in which graduates paid 0.3-2
per cent of their income for 15-20
years in return for a university educa-
tion, insisting that this was a “fairer”
system of funding than simply
increasing fees.
Thatcherism. He supports high tax not
primarily because he thinks it will
raise revenue but to punish the better-
off. Ken Livingstone wants to go even
further. Even though bonuses are
already mostly taxed at a marginal rate
of 51.5 per cent, Miliband wants to
increase the bank tax, reintroduce a
bonus tax and slap a Tobin tax on
financial transactions. He believes in
the need for the government to regu-
late pay levels in the private sector. He
supports a new graduate tax.
While some of this is inspired by the
bank crisis, most of it isn’t. Financiers
are being singled out – but all private
firms are being hit, all entrepreneurs
targeted, and nobody who is trying to
work hard to better themselves, buy a
larger house or educate their families
will be safe from the onslaught. This is
as much an anti-capitalist, anti-busi-
ness and anti-wealth agenda as it is
narrowly anti-City. All the old divisions
will reappear, all the old voting pat-
terns, all the old class-based hatreds.
There is no place in Miliband’s intel-
4.5 per cent of total assets, plus
another 2.5 per cent as a buffer
against financial shocks. However,
the central Swiss National Bank said
earlier this month that the new glob-
al regulations did not go far enough.
Credit Suisse and UBS have histori-
cally been bound by domestic rules
requiring an extra layer of capital,
and held 11.4 and 13 per cent in core
Tier 1 capital respectively at the end
of June.
UK spokespeople for UBS and
Credit Suisse declined to comment
yesterday.
UBS chief executive
Oswald Gruebel could
field requests for the
bank to hold core capi-
tal of 12 per cent
HANDS AND CITIGROUP PREPARE FOR
BATTLE
Citigroup will seek to portray Guy
Hands as a corporate raider when the
two sides meet in what promises to
be a bitter fight in a New York court-
room. The chairman of Terra Firma
filed a claim alleging that the
American bank had committed fraud
when it bankrolled a £4.2bn buyout
of EMI by Terra Firma in 2007
CROSSRAIL WILL SAVE ON EVERY-
THING, FROM STATIONS TO LIGHTS
Crossrail has identified potential sav-
ings worth hundreds of millions of
pounds, The Times has learnt. The
company building a new line across
London will reveal today that it can
point to significant possible savings
over the construction of stations in
the West End and the City as well as
the main tunnels, due to be built
from late next year.
lectual framework for the idea, shared
by Thatcher, John Major and Blair alike
that too much tax and too much red
tape is counter-productive, reduces
effort and investment, chases away
capital and talent, impoverishes the
nation and destroys the public
finances. Instead, to Miliband, the pri-
vate sector can be taxed and beaten
and throttled – and it will always come
back for more. This view of the world is
shared almost entirely by the coali-
tion’s Vince Cable wing. The two men
appear to agree on everything apart
from the budget deficit, about which
Miliband is in denial.
The opposition hates the City and
wants to tax everything that moves;
Cable agrees; the Tories are too scared
to resist. The public, which has not
been exposed to a proper defence of
capitalism for years, wants to lash out.
It is therefore becoming increasingly
difficult to remain optimistic about
Britain’s long-term future. I hope I’m
wrong, but I fear for the UK’s jobs and
prosperity. allister.heath@cityam.com
Irish prime minister Brian Cowen is in talks over Anglo Irish’s fate
Irish banks in crunch week
BANKING
▲
BY STEVE DINNEEN
CRUNCH talks were underway last
night to thrash out the details of an
announcement on Anglo Irish bank,
which could have far-reaching reper-
cussions for the Irish economy.
Ministers are expected to release
details of the cost of winding up the
stricken lender and plans to restruc-
ture the bank’s bond debt.
The reaction of the markets to the
announcement will be key to secur-
DAYLESFORD ORGANIC SIGNS HAR-
RODS DEAL
Daylesford Organic, the upmarket
food retailer owned by the family of
Sir Anthony Bamford, the JCB entre-
preneur, will open a shop-in-shop in
Harrods and a franchise store in Tokyo
in the coming weeks as it embarks on
an expansion drive. The retailer is also
in talks with major supermarkets
about supplying them with organic
ready meals.
JOHN LEWIS AD AIMS TO COVER THE
CHRISTMAS NO. 1 SLOT
The reformed Take That face some
stiff competition for the Christmas
number one slot in the shape of John
Lewis, the department store retailer.
The chain is hoping the song used on
its Christmas television advertise-
ment, which has just been filmed,
will make it to the festive number one
slot.
CITYA.M. 27 SEPTEMBER 2010
NEWS | IN BRIEF
House prices drop nationwide
House prices have fallen across all
regions for the first time since April
2009, according to September’s
Hometrack survey. The monthly report,
published today, reveals average prices
dropped by 0.4 per cent to £157,600.
London and the South East recorded
price drops of 0.4 per cent and 0.5 per
cent respectively with London’s average
price now £283,000. Housing demand
also dropped by 2.9 per cent - the third
month it has fallen. The widening gap
between supply and demand has also
resulted in houses taking longer to sell.
Spain faces general strike
Spain was last night braced for a gener-
al strike but analysts hope turnout will
be low as the country continues to
wrestle with its mammoth budget
deficit. The mass walk-out is planned for
Wednesday but many Spaniards support
the austerity measures and are likely to
ignore the unions. A poll showed only 18
per cent of the workforce are in favour
of the strike. Moreover, 71 per cent of
those polled did not believe the strike
would alter government policy over radi-
cal belt tightening measures.
Picture: PA
ing the financial stability of the Irish
economy, which is struggling to con-
tain the largest budget deficit in
Europe.
Dublin’s borrowing costs soared to
fresh highs over fears the burden of
saving its banks from the disastrous
property bubble, in which Anglo is
heavily implicated, will tip Ireland
into financial meltdown.
Ministers hope the markets will
react positively and prevent the coun-
try from having to resort to a bailout
from the IMF or the EU.
UNICREDIT CONSIDERS SPLITTING
CEO ROLE
The board of UniCredit SpA is expect-
ed to discuss the fundamental out-
lines of the bank's future this week,
including the structure of its corpo-
rate leadership and a new chief exec-
utive—or a duo of top executives. The
discussions follow the resignation
last week of CEO Alessandro Profumo
amid concerns by shareholders that
he wielded too much power.
AIG LAYS OUT PROFIT FORECAST FOR
AIA UNIT
American International Group Inc.
said it expects its AIA Group Ltd. life-
insurance business will likely have an
operating profit of at least $2bn in
the fiscal year ending 30 November.
Premium income at AIA, which AIG
plans to list on the Hong Kong stock
exchange in October, increased by 11
per cent in the first nine months.
CITYA.M. 27 SEPTEMBER 2010
Chinese set to
eat up United
Biscuits deal
▲
FOOD
BY EMMA SADOWSKI
MCVITIES manufacturer, United
Biscuits (UB) is in talks with one of
China’s largest food groups about a
possible takeover that could value the
British company at almost £2.5bn.
The Shanghai-based foods group
Bright Food yesterday confirmed that
it was in talks with UB to pen a deal
that would potentially hand the
Chinese group a large chunk of the
British food industry.
If the two agree a deal, Bright Food
will acquire UB, which is also behind
brands such as Hula Hoops, McCoys
and Twiglets, from private equity own-
ers Blackstone and PAI.
It is understood that Bright Food has
turned to Rothschild for financial
advice.
UB was put up for sale in July after
Blackstone and PAI hired Goldman
Sachs and JP Morgan to prepare for an
auction of the business. The two
bought the food company in 2006 for
£1.6bn.
Already a number of bidders have
expressed interest in UB, including
New Jersey-based Campbell’s.
In August, Campbell’s, which manu-
Blow to Betfair as odds on £1.4bn
float valuation are slashed by rival
▲
GAMING
BY STEVE DINNEEN
BETFAIR’S hopes of achieving a valua-
tion above £1.4bn in its upcoming
float have received a blow from a rival
online bookie.
Bodog was forced to slash its odds
on Betfair failing to hit the sum after
a rush by shrewd punters. Bodog ini-
tially offered 8/11 on the IPO failing to
hit £1.4bn but was forced to cut the
price twice, first to 1/2 then to 1/3.
The bookie also reported a number
of customers setting up accounts
especially to place bets against Betfair
reaching the figure, seen as a warn-
ing sign in the industry.
A Bodog spokesman said: “We have
News 3
Tesco boss slams
short-term investors
Jeff Van der Eems
is chief operating This would also free up managers
▲
UK ECONOMY
officer for United BY HARRY BANKS from dealing with the goals of short
Biscuits (UB), which term investors and allow them to cre-
may be sold to TESCO boss Sir Terry Leahy has ate more wealth in the long-run.
Chinese group launched a stinging attack on City He said: “Many investors don’t
Bright Food. UB’s investors for failing to act in the best want to get under the skin of the
brands include interests of Britain’s public compa- business or don’t have the patience
HobNobs and Hula nies. for long-term value creation.
Hoops Writing in today’s Times, Leahy “While executives may invest many
said shareholders would benefit from years... in one company, investors may
becoming more engaged with the consider that a long-term interest in a
firms they invest in. company lasts only a year or two.”
factures canned soup and pasta sauces,
emerged as a lead bidder for UB. The
US company, however, was just inter-
ested in UB’s biscuits business and not
its snacks operation.
Food giants Kraft, Kellogg’s and
PepsiCo were also thought to be inter-
ested in UB, as well as India’s Britannia.
UB, which was founded in 1948, last
year saw profits rise by 13.4 per cent to
£223.4m. It has annual revenues of
£1.3bn and net debt of £1.2bn.
Bright Food, meanwhile, last year
generated roughly £200m in profits on
sales that reached £4.3bn. Its brands
include Big White Rabbit candy and
Shikumen yellow wine
Despite the fact it is already foreign
owned, a possible deal with Bright
Food is likely to spark concern over the
future of UB’s British employees and
could trigger interest from the inter-
ventionist Vince Cable.
FAST FACTS | UNITED BISCUITS
● Profits reached £223.4m last year.
● Sales reached £1.26bn last year.
● Net debt reached £1.2bn last year.
● Manufactures: McVities, Jaffa Cakes,
McCoys, Twiglets, Hula Hoops and Phileas Fogg.
had 182 bets on the downside com-
pared to just 22 on the upside. For a
bet this niche this is quite a lot.
Having a lot of experience in this
industry I’m pretty certain these peo-
ple will turn out to be right.
“We even had people setting up
multiple accounts so they could get
three bets at the maximum of £500 a
bet.”
The world’s biggest online betting
exchange is not planning on raising
new capital in the flotation but will
put a minimum of 10 per cent of
the company on the market
through the sale of shares of exist-
ing stakeholders.
It expects to announce its pricing
after its annual meeting next month.
 4 Labour Leadership CITYA.M. 27 SEPTEMBER 2010

The Tories shouldn’t write-off Red Ed

DAVID CROW
POLITICAL EDITOR
THERE is undisguised mirth in Tory
circles at the election of Ed Miliband
as Labour leader. On Saturday night,
shortly after the result was
announced, staff at Conservative HQ
were popping open the champagne.
Advisers to David Cameron think the
next election is more winnable than
ever.
Much of this relief is understand-
able. Ed Miliband’s victory has sound-
ed the death knell for New Labour,
that election-winning machine which
the party has come to hate. The Tories
have always said Tony Blair was
unbeatable and feared that David
Miliband, his last disciple, would also
prove a tough opponent. They will be
glad his only shot at leading the oppo-
sition has passed.
Ed Miliband sees no shame in clos-
ing the door on the Blairite past, and
everything it stood for. “The era of New
Labour has passed, a new generation
has taken over,” he said yesterday, in
his first major interview since winning
the crown.
There is nothing “new” about the
team that now leads Labour, however.
Ken Livingstone is not only the party’s
mayoral candidate, but also topped
the poll in the race to sit on its
National Executive Committee (NEC).
Lord Kinnock, flag bearer for the left
wing, was one of Ed Miliband’s most
vocal supporters. Despite Blair’s
attempts to consign them to history,
the union barons are once again an
important voice in the political debate.
It’s not just the same old faces. Gone
is the emphasis on social mobility, on
reward for hard work and entrepre-
neurial spirit. It will be replaced by
“equality”, essentially old-fashioned
redistribution of wealth. Labour no
longer wants to grow the pie – it just
wants to cut it up more evenly.
The banks will be bashed; the rich
will be soaked; the private sector will
be banished from public services. This
is the manifesto on which Labour will
fight the next election. And they could
well win – despite what the Tories
think.
For Ed Miliband is not the joke that
his opponents are trying to portray
him as. No, he is not as good as Blair,
few politicians are. But he is still one of
the most credible Labour leaders in
recent times.
He is much better than Neil
Kinnock, the “Welsh windbag” that
voters simply wouldn’t vote for in 1992
– no matter how much they hated
John Major and his completely divided
government. As Gordon Brown’s
favourite number cruncher, he is clear-
ly economically literate, unlike Harriet
Harman, and will be able to twist facts
and figures to attack the government
as only a Brownite can. He is no pro at
TV, but his smile is nowhere near as
scary as Brown’s.
If he can convince the big trade
unions to keep industrial unrest in
check, his populist brand of socialism
could tap into the banker-bashing zeit-
geist. As could his claim that the
deficit can be reduced without much
pain. Voters might say they back tough
cuts right now, but it’s easy to say that
before their impact starts to bite.
Worst of all for Cameron, Ed
Miliband is an unknown – both in pol-
itics and public. A fresh face gives him
an enormous advantage.

Rivals jostle
to be shadow
chancellor
tions for shadow cabinet close,” said
▲

POLITICS
BY DAVID CROW
ED Miliband was last night desperate-
ly trying to get his older brother to
become shadow chancellor, although
he has not yet sealed the deal.
An aide to David Miliband, who
was narrowly beaten in the battle to
become Labour leader by his younger
sibling, said he hadn’t decided
whether to put his name forward for
elections to the shadow cabinet.
It had been assumed that the elder
Miliband would agree to serve under
his brother if he failed to win the
crown, but yesterday his campaign
team rowed back from that position.
“He doesn’t have to decide until
Wednesday at 5pm, when nomina-
Wife swap: Ed Balls is hoping to become
shadow chancellor but his wife, Yvette
Cooper, is also a strong contender
one. “He won’t make a decision until
shortly before then.”
Sources close to the new Labour
leader said he thinks shadow chancel-
lor is the only job David Miliband can
accept without losing face.
However, the brothers’ differing
opinions on deficit reduction could
cause difficulty. David Miliband
agrees with Alistair Darling’s propos-
al to cut the deficit in half within
four years, whereas his younger
brother says that this is a plan that
needs to be improved.
If David Miliband decides to reject
the job offer, most think that Ed
Balls, the former schools secretary
and Brown ally, will get the major
economic brief.
But sources within the Ed Miliband
camp were yesterday talking up the
chances of Yvette Cooper, the former
pensions secretary and Balls’ wife.
Former cabinet ministers like Tessa
Jowell and Alan Johnson – two of the
remaining Blairites – will also be
strong contenders for big jobs, in a
bid to unify the right and left of the
party. Newer faces like David Lammy,
Sadiq Khan and John Healey are also
under consideration.
CITYA.M. 27 SEPTEMBER 2010 Labour Leadership 5

ANALYSIS | DOWN TO THE WIRE

CANDIDATE
ED MILIBAND DAVID MILIBAND

@
MPs AND MEPs
15.52% 17.81%

PARTY MEMBERS
15.20% 18.13%

19.93% 13.40%
AND AFFILIATES
TRADE UNIONS
TOTAL
@
Ed Miliband beat his
brother in the Labour lead- 50.65% 49.35%
ership race
Picture: GETTY

ANALYSIS |
SHADOW CABINET ODDS Unions accused of foul WWW.GANT.CO.UK

@
26 CANADA SQUARE
CANARY WHARF
SHADOW CHANCELLOR

play in Labour campaign

LONDON E14 5AX
Ed Balls 49%

@
TEL 020 7715 7470

Yvette Cooper 37%

David Miliband 35%
SHADOW FOREIGN SECRETARY
David Miliband 52.35% put Ed Miliband as their second pref-
▲

POLITICS
Yvette Cooper 24% erence. Under Labour’s electoral col-
Alan Johnson 10% CHARLIE Whelan, the outgoing polit- lege, an MP’s vote is worth about 600
ical director of the Unite union, yes- ordinary party member votes.
SHADOW HOME SECRETARY terday claimed he delivered a victory The claim will come as an
Andy Burnham 35% for Ed Miliband by pressuring six embarassment to Ed Miliband, who
Ed Balls 35% Labour MPs to change their vote. won the election by sweeping up the
Alan Johnson 15% The former Gordon Brown spin votes of trade union members. His FOR MORE NEWS
*odds from Smarkets
doctor said he convinced the MPs,
who rely on trade union funding, to
brother David was more popular with
both MPs and members.
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CITYA.M. 27 SEPTEMBER 2010 News 7

10%
the number of businesses
37%
said their volumes had
who thought markets risen in the past
would fall significantly three months

9%
said their
June 2007
the last time activity in
the financial services
industry grew at the
volumes would fall
current rate
CBI chief economic adviser Ian McCafferty
(l) launched the report with PwC executives
Pars Purewal (above) and Andrew Gray (r)

City sees lift

in financial Exchange Traded Funds

services poll
The proportion of firms who
▲

FINANCIAL SERVICES
BY JOHN DUNNE
THE financial services sector grew at
faster rate in the past three months
than any time since June 2007 – but
the increasing burden of regulation is
hitting businesses hard, a CBI-led
report warned today.
A poll carried out by the CBI in tan-
dem with professional services firm
PwC revealed an increasingly upbeat
City with the profitability and vol-
ume of businesses improving for the
fifth consecutive quarter.
The overall number of people
employed in the sector increased for
the first time since December 2007
although the banking sector bucked
the trend as jobs were slashed.
A total of 37 per cent polled said
their volumes had risen in the three
months to September while only nine
per cent said they fell. The remaining
54 per cent said there had been no
change. Banks’ volumes jumped after
two quarters of declines and building
societies saw the fast rise since March
2008. Meanwhile investment man-
agement also saw an upturn with
profitability, while finance houses
saw a “rapid” rise in profitability.
thought markets would deteriorate
fell to 10 per cent, highlighting the
general mood of cautious optimism,
according to the CBI/PwC Financial
Services Survey.
CBI chief economic adviser Ian
McCafferty said: “Activity picked up
in the financial services sector for in
the last three months at a pace not
seen since the credit crunch.” He said
that forecasts had suggested a bigger WWW.ETF.HSBC.COM
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which will have consequences for
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in Venezuela NBC Universal

▲

OIL
VENEZUELA has granted BP permis-
sion to negotiate the sale of its assets
in the South American OPEC mem-
ber, Venezuelan Oil Minister Rafael
Ramirez said yesterday.
Last month, he said BP would need
authorisation from the administra-
tion of President Hugo Chavez to sell
its minority stakes in two exploration
and production joint ventures with
Venezuela’s state oil company PDVSA,
as well as its interest in the
Petromonagas crude upgrader.
The assets are valued at between
$850m (£537m) and $1bn. BP has
been seeking to raise up to $30bn.
MEDIA
COMCAST chief operating officer
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Universal when his firm completes its
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company.
He will succeed Jeff Zucker as chief
executive of the firm when Comcast
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stake in NBC Universal from General
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Brian Roberts said: “Steve Burke is an
experienced, talented and visionary
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and entertainment industry.”
Burke will have his work cut out to
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 8 News
£23m payout
softens blow
to Geoghegan
▲
BANKING
BY VICTORIA BATES
MICHAEL GEOGHEGAN, the outgo-
ing chief executive of HSBC, will have
earned a potential payout of up to
£23m by the time he leaves the bank
next year, in the wake of an effective
coup at the helm of the group.
Geoghegan is in line for a severance
payout of £1.24m, while he is also eli-
gible for a bonus of up to £4.2m for
the current financial year. He owns
£6.2m of shares built up throughout
his 37-year career at HSBC, around
£4m worth of restricted shares from
previous bonuses yet to vest, and
£7.2m in a long term incentive plan.
But the actual amount Geoghegan
will take home will almost certainly be
considerably less than £23m, due to
the stringency of the targets to which
HSBC’s long term incentive plan is
aligned. The scheme typically only
pays out a quarter of its value over
time. He has also previously donated
bonuses to charity, including £4m in
the prior financial year, meaning the
2010 award and restricted shares may
end up in third sector coffers.
HSBC’s treatment of Geoghegan
during the succession process, when
lurid details of a rift on the board
were leaked to the press, has come
under fire from investors despite the
bank’s denial of any bad blood.
George Godber, a fund manager at
Matterley, said: “There have been
many raised eyebrows about the
process, which was very out of charac-
ter for HSBC, a deeply conservative
organisation. It all just seemed
extremely unprofessional.”
ANALYSIS l HSBC
p 666.30
700
24 Sep
680
660
640
620
600
28 Jun 16 Jul 5 Aug 25 Aug 15 Sep
CITYA.M. 27 SEPTEMBER 2010
Management
team has its
work cut out
THE coup that cost Michael
Geoghegan his job was caused by a
dramatic boardroom rift in a bank
famed for its conservatism. While
this kind of putsch might be
expected at one of its rivals, HSBC
is a gentlemanly outfit where
decorum is all. No-one can deny
that the bank has promoted two of
its best to the chair and chief exec-
utive role. Few in the industry
have a bad word to say about
Douglas Flint or Stuart Gulliver.
But the sorry episode has exposed
some of HSBC’s failings. The top
jobs should not be automatically
handed to heir apparent candi-
dates: no-one should feel they are
entitled to any particular position.
Because while HSBC avoided
some of the riskier activities that
proved so toxic for its rivals, it still
has much to do. Despite talking
the Asian talk, it walks with a dis-
tinctly western swagger, garner-
ing 44.1 per cent of pre-tax profits
from Europe, the UK and the
Americas (compared to just seven
per cent for rival Standard
Chartered). The new management
team has its work cut out.
BOTTOMLINE
HSBC’s Michael Geoghegan could be laughing all the way from the bank Picture: GETTY
Analysis by David Crow
CITYA.M. 27 SEPTEMBER 2010 News 9

Santander talks
BAA chairman Sir
Nigel Rudd has
warned that the
lack of a third run-
way at Heathrow

with US bank fail

will drag the air-
port down into the
“second tier”

tions for Anglo Irish Bank (AIB),

▲
BANKING
BY MATTHEW WEST
TALKS between US bank M&T and
Santander over a $7.14bn (£4.5bn)
merger of their US operations “are no
longer on” a source close to the deal
has told City A.M.
The negotiations over a merger
between M&T and Santander-owne
Sovereign Bank collapsed on
Thursday. The deal also has implica-
M&T’s largest shareholder.
A deal would have seen the merged
bank come under the control of M&T
chief executive Robert Wilmers with
Santander taking a majority stake in
the combined entity. That would
have seen Santander buy AIB’s 22.5
per cent stake in M&T helping AIB
raise $1.61bn towards the $9.9bn it
desperately needs to raise by the end
of December to meet new bank rules.

Rudd: lack of
third runway
will harm UK
name building up conglomerate
▲

AVIATION
BY VICTORIA BATES
SIR Nigel Rudd, the chairman of air-
port operator BAA, at the weekend
warned that preventing Heathrow
from building a third runway poses a
significant threat to the UK’s compet-
itiveness.
Rudd said that the decision to pull
plans for the third runway, a central
promise made by the coalition gov-
ernment after the general election in
May, would make Heathrow a “sec-
ond tier” airport, lagging behind its
European peers.
“The question I want answering is,
if there is going to be no third run-
way, and no more in the South East of
England, how does the nation cope
with the fact that we’re going to
receive an ever decreasing share of
international passengers as all the
other major international airports
are expanding?” Rudd asked in an
interview with the Sunday Telegraph.
“We’re becoming less competitive,”
he added. “Even if we continue to
make operational improvements,
[Heathrow] will still be a world class
but second tier airport.”
Rudd, who made his business
Williams Holdings with Centrica
chairman Roger Carr in the 1980s,
said BAA’s major investors were
befuddled by the decision not to go
ahead with the third runway.
Majority owner Ferrovial, the
Spanish construction group, and
smaller stakeholder GIC, the
Singapore-backed investment compa-
ny, “don’t understand why we’re not
championing the UK”, Rudd said.
His comments come after the
Tories and Liberal Democrats official-
ly pledged in their coalition agree-
ment in May to drop the third
runway at Heathrow. The govern-
ment also agreed to block future new
runway developments at Stansted
and Gatwick.
The issue has previously drawn an
emotive response from the business
world as well as green campaigners.
Last year, a group of influential
City figures – including Kingfisher
chief executive Ian Cheshire, Credit
Suisse banker Russell Chambers,
Sainsbury’s boss Justin King, private
equity guru Jon Moulton and Charles
Dunstone of Carphone Warehouse –
united to lobby against the new run-
way.

Gatwick airport owners

to sell a minority stake
for just under £100m.
▲

TRANSPORT
THE owner of Gatwick airport is in
negotiations to sell a minority stake
in the transport hub to an unidenti-
fied investor.
Global Infrastructure Partners (GIP)
is believed to be holding talks with a
global institutional investor with the
aim of selling one final minority
stake in the airport it acquired from
the British Airports Authority for
£1.5bn in October 2009.
The stake is likely to be the same
size as the 12 per cent GIP sold to
South Korea’s national pension fund
The identity of the buyer is
unknown although a Sunday newspa-
per said bankers thought it most like-
ly to be a sovereign wealth fund from
either Asia or the Middle East.
It has already syndicated nearly 40
per cent of its shareholding, selling 12
per cent to the South Korean national
pension fund, 15 per cent to the Abu
Dhabi Investment Authority for
around £125m and most recently 12
per cent to US public pension fund
Calpers in June.
GIP intends to retain a 51 per cent
shareholding in the airport.
 The Capitalist
10
MANAGING A HEDGE FUND? SIMPLE,
IT’S LIKE DRIVING THE SCHOOL BUS
YOU’VE got to hand it to Glenview
Capital hedge fund manager Larry
Robbins – The Capitalist has rarely
heard such a creative defence of a
period of negative returns.
Robbins, in his latest newsletter to
clients following a four per cent
decline in his portfolio over the sec-
ond quarter, touched on the equity
markets and the wider economic
environment, but boiled the perform-
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ance down to a simple analogy: com-
paring his job to that of a bus driver.
Taking his Monday morning rou-
tine as an example, Robbins
explained how driving his children to
school in New York was actually a
combination of alpha and beta – the
latter being the flow of traffic each
day, and the former his own “combi-
nation of knowledge, skill and luck,
attempting to choose the correct
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CITYA.M. 27 SEPTEMBER 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
lane, the alternate route, the best
shortcut to weave along the 15 mile
journey”.
“Our job at Glenview is very similar
to my job as Monday bus driver,” he
continued – with his investors’ capi-
tal akin to his precious human cargo,
and his own mandate to reach their
investment goals on time.
“While at any point and time it
may appear as though one car is
Glenview’s Larry Robbins is certainly creative Pictures: GETTY, Micha Theiner/City A.M.
ahead while another is behind, it is
the consistent drivers that utilise all
of their tools of alpha that consistent-
ly end up leading the race at the end,”
Robbins concludes, brightly. “Thus,
while we are disappointed that the
second quarter brought heavy traffic,
we are satisfied with our navigational
skills as a team, and we believe we are
on pace to arrive at our common
objectives safely and securely.”
That’s alright, then.
BOOK WORM
Vince Cable’s not having a good time
of it of late, what with the thunder-
Cable’s book is high on the abandoned list
even higher in the abandonment
league table.
ous reception to his “anti-business
secretary” speech at the Lib Dem con-
ference last week and all. Now budget
hotel chain Travelodge has another
piece of dire news – apparently,
COLOUR FLASH
Word reaches The Capitalist
Deloitte is busy persuading all staff
that
Cable’s book “The Storm: The World from diverse cultural backgrounds to
Economic Crisis and What it Means”
is the third most readily-discarded
wear traditional ethnic dress into the
office on Fridays, as part of its diversi-
tome in the group’s hotel rooms so ty programme. Brings a new and
far this year.
This for the man who, when inter-
colourful meaning to “dress-down
Fridays”, doesn’t it?
viewed by City A.M. earlier this year,
couldn’t give away his work quickly
enough, foisting the books on his hap-
less guest in any number of weird and
wonderful foreign languages.
Still, at least he can take solace in
the fact that Simon Cowell’s
“Unauthorised Biography” and Ant &
Dec’s biography were both placed
BILL OF THE WEEK
TO THE Nipa Thai restaurant at the Royal
Lancaster Hotel last week for a spicy mid-
week lunch feast, where our diners whet-
ted their appetites with two bottles of
Louis Roederer Cristal Brut before gorg-
ing themselves on traditional Thai delica-
cies.
They started with soups, soft shell crab
and fishcakes, moving on to sample
sweet and sour seabass, scallops with
asparagus and king prawns in red curry
sauce for main course and traditional ice
creams for dessert.
Their banquet was washed down with
two bottles apiece of Château Smith
Haut Lafitte and Château Malartic-
Lagravière, while a round of Hennessy
cognacs and Taylors port brought the
bill to £1,222.30 before service.
 12 News

If

lif e
British shoppers are feeling the economic pinch Picture: Micha Theiner/City A.M.

Britons hit by
uncertainty
g i ve s ▲
UK ECONOMY
BY JESSICA MEAD
BRITISH households felt their wallets
stretched even further in September
as a combination of rampant infla-
tion, job market uncertainty and
static incomes caused a marked dete-
rioration in households’ finances,
the Markit Household Finance Index
will show today.
Markit’s survey revealed that 27
per cent of households reported a
households are braced for a renewed
squeeze on their finances in the
months ahead. Concerns over pay
and job security remain at the fore-
front of people’s minds, while stub-
bornly high inflation and an
impending VAT rise are becoming
increasingly difficult to ignore.”
Consumers’ confidence is not
being helped by the gloomier out-
look for the UK housing market.
Hometrack’s monthly housing sur-
vey, published today, showed prices

yo u
deterioration in September com-
pared to just 7 per cent recording an
improvement. The index rose to 40.2
from 37.9 in August but remained
well below the 50 no-change level.
Households’ gloom is not expected
to shift soon – 41 per cent of house-
holds anticipate a worsening in their
financial situation over the next 12
months compared to 23 per cent that
forecast an improvement.
Tim Moore, economist at Markit,
said: “September’s survey adds to a
growing weight of evidence that UK
falling across all regions for the first
time since April 2009.
Nationally, house prices fell by 0.4
per cent and for the third consecutive
month. Hometrack expects this peri-
od of falls to continue well into 2011.
“Agents report that there are fewer
purchasers and that those pur-
chasers looking to buy are both cau-
tious and choosy – the return to a
buyers’ market seems inevitable in
the coming months,” said Richard
Donnell, director of research at
Hometrack.

ECONOMIST VIEWS: HOW CONFIDENT DO YOU

THINK UK HOUSEHOLDS ARE? Interviews by Jessica Mead

HOWARD ARCHER | IHS GLOBAL INSIGHT

s “ With the latest evidence pointing to a significant moderation in growth

in the third quarter, we suspect that consumers may have become gloomier again

o n ”
about the economic outlook and how they might be affected. In particular, con-

lem
sumers remain worried over the fiscal squeeze that will increasingly bite.

ALAN CLARKE | BNP PARIBAS

“ Confidence should be really hurting as a result of the upcoming austeri-

ty measures. Just the anticipation of cutbacks and public sector job losses is

”
upsetting people’s confidence. House prices are looking worse and worse and our
real take-home pay is dropping.

JEREMY BATSTONE-CARR | CHARLES STANLEY

“ Stock markets have been driven higher but in a real economy plagued
by unemployment, the threat of further job losses, austerity (in the UK and

”
Europe) and falling house prices it hardly feels like a cause for celebration for the
man or woman on the street.
CITYA.M. 27 SEPTEMBER 2010 News 13

Sainsbury ponders
expansion in China
CONSUMER charged with looking at possible over-

▲
J SAINSBURY has sent a team to China
to decide whether the supermarket
group can begin a war on a new front
with its arch-rival Tesco.
Senior executives met with officials
from China’s Ministry of Commerce
when they visited London this week.
Darren Shapland was moved from
finance director to a business devel-
opment role at Sainsbury in June,
Top (l-r): Baroness Hogg, Ann Cairns, Kim McFarland. Bottom (l-r): Magdalene Bayim-
Adomako, Tiina Lee and Theodora Zemek.
seas expansion, among other moves.
A Sainsbury spokesman told City
A.M. the company’s position had not
changed since June, when it said it
would conduct fact-finding missions
overseas, but that it had no short or
medium term aspirations to open
stores there.
Tesco has plans to invest £2bn in
Chinese mall stores over the next five
years.

Top 100 list

shows women
at senior level
▲

FINANCIAL SERVICES But, according to the UK Equalities

BY EMMA SADOWSKI
MORE than a fifth of Europe’s 100
most influential women sit at the top
of some of the largest companies
within the financial services sector,
according to new findings.
According to the fourth annual list
of the 100 most influential women
compiled by Financial News, more
than 20 per cent of the listed women
in the European finance sector retain
the chief executive role.
Up to one-third of the list hold
managing director titles, while 10
are regional heads and 15 are heads
of department.
The listed women work across the
investment banking, asset manage-
ment, hedge fund, private equity,
wealth management, pensions,
financial regulation, exchanges and
trading sectors.
Financial News said this year’s
selection showed the industry’s con-
tinued focus on regulation, the
increased role of corporate gover-
nance and the scrutiny by pension
funds as asset owners. The list also
reflects the endless work that has
gone into restructuring companies
in the wake of the global financial
crisis.
and Human Rights Commission,
only 44 per cent of the banking,
finance and insurance sector is made
up of women and that number is sig-
nificantly under-represented at the
senior level.
Financial News argued that the list
is proof there is potential to turn that
around.
The City features highly in this
year’s list, which includes women
who work across Europe, the Middle
East and Africa.
Some of the listed names include,
Ann Cairns, who heads the European
financial services department at
Alvarez & Marsal, Baroness Hogg,
chairwoman of the Financial
Reporting Council (FRC) and
Magdalene Bayim-Adomako, who
leads the bank finance team in
London for law firm White & Case.
Margaret Cole, director of enforce-
ment at the Financial Services
Authority is on the list for a second
year running.
Financial News, which is owned by
News Corp and is a sister title to The
Sunday Times, compiled the list after
canvassing the industry for more
than 250 nominees.
The results are published today.

THE CITY'S MOST INFLUENTIAL WOMEN

Name Title and Company

1) Margaret Cole
2) Baroness Hogg
3) Magdalene Bayim-Adomako
4) Angela Knight
5) Theodora Zemek
6) Tiina Lee
7) Kim McFarland
8) Danielle Ballardie
9) Ann Cairns
10) Saba Nazar
Director of enforcement, Financial Services Authority
Chairwoman, Financial Reporting Council
Head of London bank finance, White & Case
Chief executive, British Bankers' Association
Head of fixed income, AXA Investment Managers
Head of UK strategy, Deustche Bank
Chief operating officer, Investec
Vice president equities electronic trading, BarCap
Head of financial advisory group, Europe, Alvarez & Marsal
Co-head global financial sponsors group, Nomura
 14 News
Winterflood
backs LSE on
rules change
▲
REGULATION
BY MATTHEW WEST
CITY veteran Brian Winterflood has
joined London Stock Exchange (LSE)
chief executive Xavier Rolet’s call for
the Square Mile to oppose the govern-
ment’s proposed splitting up of the
UK’s share listing regulations.
According to an audience member
at a Quoted Companies Alliance
(QCA) dinner last Thursday,
Winterflood gave an impassioned
speech, calling on all those present to
make submissions opposing the gov-
ernment’s proposals. These also
include the setting up of a compa-
nies’ regulator, before the consulta-
tion deadline in October.
Insiders said Winterflood, the
QCA’s new president, said the City
must stay competitive. One told City
AM his speech “came across as very
impassioned and very supportive of
the views held by Xavier Rolet.”
The backing of Winterflood will
come as a huge boost to Rolet, who
called on City firms to back his oppo-
sition to the government’s proposals.
Winterflood is a popular member of
the City establishment, having
worked in London over 50 years and
helping to found the QCA in 1992.
Two weeks ago the LSE made clear
its opposition to government plans to
merge the UKLA and Financial
Reporting Council (FRC) arguing the
proposals would mean the City would
be under-represented at the European
Securities and Markets Authority and
could mean the current tri-partite
authority would simply be replaced
with a new equally complex regulato-
ry structure.
“I don’t speak for others but I
would say that I would not be sur-
prised if a number of other partici-
pants issued similar views to ours,”
Rolet told City AM two weeks ago. “I
want to encourage them to make
their views known. We need a robust
response to the consultation.”
The proposals are viewed with sus-
picion in City circles as business secre-
tary Vince Cable would have ultimate
control of an expanded FRC.
Waitrose managing director Mark Price said he isn’t starting a war
Waitrose to take Tesco
head on in price contest
RETAIL
▲
BY EMMA SADOWSKI
WAITROSE is to take Tesco head on
after the supermarket giant revealed
that it will price match its rival on
over 1,000 branded products.
Starting today, Waitrose will use
Tesco as a benchmark when pricing
its top-selling everyday branded prod-
ucts, such as Persil, Ribena and Heinz
Baked Beans.
Managing director Mark Price said
Picture: REX
this is likely to mean the supermarket
will take a £26m hit on its margins to
keep its prices as low as Tesco’s.
Price said the move was not to start
a war with Tesco but that it was using
the supermarket as a comparator
because it is the largest.
Waitrose said the move builds on
the success of its own in-house
brands, which already make up 17 per
cent of its sales.
Waitrose will monitor the price-
matched items twice a week.
CITYA.M. 27 SEPTEMBER 2010
US Senate is
divided in row
over tax breaks
US ECONOMY
▲
US Democrats do not have the votes
in the Senate to pass their proposal to
extend tax breaks for all but the rich-
est Americans, Senate majority whip
Dick Durbin said yesterday after the
US lower house left the door open for
a vote on the proposals to be delayed
until after the mid-term elections.
Under the Democrat’s proposals, a
tax break introduced by the previous
Bush administration would be
extended to individuals earning up to
$200,000 (£126,000) and couples who
earn $250,000 jointly. Republicans
want the tax break extended to all cit-
izens. Those affected by the
Democratic proposals represent the
top two per cent of earners in the US.
The tax breaks are due to end on 31
December.
Republicans, and a few Democrats,
say the tax reductions should apply to
all as raising taxes in an atmosphere
of high unemployment and slow
growth risks slowing recovery.
There are also disagreements over
the timing of the vote after the House
of Representatives left it open to delay
beyond 2 November, the date of
midterm elections in which the
Democrats expect to fare badly in.
“We know we don’t have the 60 votes
for our position,” Durbin said yester-
day.
CITYA.M. 27 SEPTEMBER 2010
The housebuilding chief executive
who can see clear blue skies ahead
Bovis Homes boss
David Ritchie took
over in 2008 and is
battling his way out
of the housing crisis
F
OR A MAN who took over a house-
builder in the middle of a devastat-
ing financial and property crisis,
David Ritchie, the chief executive of
Bovis Homes, looks remarkably relaxed.
But it is certainly fair to say the pain has
eased in recent months for the firm, even
though Ritchie remains in the middle of
turning it around. Bovis stopped building
altogether at one stage and its new CEO
has slashed its costs by half since he took
over in July 2008, in the depths of the hous-
ing market collapse and recession. Ritchie,
who has worked at the firm for 12 years,
took over the baton from Malcolm Harris,
who moved up to become chairman when
he hit 60.
“We have now resized the business,” says
Ritchie, who has a soft-spoken Falkirk
accent. “We are on the third phase of recov-
ery for the business, which is to aggressive-
ly buy up land. If we are right this is the
bottom of the market.”
He says that over the next two years “we
want to buy twice as much land as we use.
This is a great opportunity to buy a key raw
material at the bottom of the cycle.”
Ritchie is speaking in his large modern
office at the firm’s headquarters in New
Ash Green, Kent. He is short and so lean he
could pass for a long distance runner, but
the married father-of-two says the most
strenuous things he does is cut the grass
on his motorised lawn mower and chase
after his young sons at the weekends.
The Bovis Homes boss says that land
tracks house prices in a ratio of around
three to one. If house prices move up one
per cent, land will move up three per cent,
and vice versa. So since national house
prices are on average 20 per cent below
their summer 2007 peak, this makes land
cheap to buy. Ritchie’s thinking is the
more land it snaps up now the greater the
chance it will have to build profitably
when the market picks up. So far this year
Bovis, one of the UK’s smallest listed house-
builders, has added 1,874 new plots, boost-
ing its landbank to 13,113 units. The firm is
in negotiations to buy another 3,000 plots.
Bovis is a mid-market builder that typi-
CV | DAVID RITCHIE
Age: 41
Work: Appointed chief executive in 2008,
Ritchie was group managing director from
2007 to 2008 and group finance director
from 2002 to 2006. He joined Bovis
Homes in 1998 as the group's financial
controller. He was previously employed by
KPMG and was involved in advising clients
on acquisitions, disposals and flotations as
well as audits.
Education: Reading University, read
economics and accounting
Family: Married, with two children
Lives: Just outside Tunbridge, Kent
Hobbies: Works in his garden at weekends
WORDS BY ROGER BAIRD
cally sells three and four bedroom brick
houses on greenfield sites on the edge of
towns or villages in the south of England.
In the last year, 80 per cent of the land it
bought was in the south – in places like
Bristol, Reading and Cheltenham.
Ritchie sold a lot of houses in 2009, cut
costs, and carried out a £60m share plac-
ing last September. This saw him move
Bovis into a position of having £112m in
the bank with £150m of undrawn bank
debt to call on.
Last month, the housebuilder reported a
first half profit of £3.5m, an improvement
from a loss of £8.6m a year ago. It sold 803
houses, up from 754 in the same period 12
months ago. However, the average price at
which the properties were sold fell one per
cent to £158,500 from £159,700, mostly
due to Bovis selling a higher percentage of
its homes as cheaper social housing. The
firm also plans to reinstate its dividend at
the end of this year after suspending it in
the housing crisis almost two years ago.
Ritchie adds that if house prices fell a
further five per cent he would still be
“comfortable” with the profit the business
made. However, he thinks prices will actu-
ally remain stable “for quite some time.”
He adds: “I see a U-shaped recovery. But the
question is how long the bottom of the U
will be. I feel now it will be longer than I
had thought a year or so ago.”
A recent Savills report thought there
would be no sustained recovery in the
housing market until 2012, although
Ritchie won’t be drawn on when he thinks
the market will pick up.
Still, Bovis has a long way to go to get
back to the levels it was at before the mar-
ket collapse in early 2007 when it sold 50
houses a week. Currently it sells 27.
The recession has had a profound effect
on mortgage approvals, which ran to
110,000 in August 2007, but plummeted to
23,000 in December 2008. Currently, they
are running at between 45,000 and 50,000
a month.
In was during this freefall that Ritchie
Bovis Homes chief was handed the top job two years ago.
executive David “By the middle of 2008 it was clear that
Ritchie in the grounds we were looking at something very serious
of his headquarters at indeed,” he says.
New Ash Green, Kent Ritchie explains: “We began a three-step
programme. The first step we had to take
Picture: was to set about stopping spending money.
Micha Theiner We simply stopped building. In an ordered
/City A.M. way, we completed what we were contract-
ed to finish. Other houses we made weath-
er-proof and then halted.”
The chief executive also took an axe to
costs, cutting staff numbers from 1,000 to
around 400, and cutting overheads in half
to £25m.
In 2008 the firm doubled the percentage
of cheaper social housing homes it usually
sold to 30 per cent “because something
like 90 per cent of our private customers
disappeared.” This is because Bovis targets
first and second time buyers, who usually
need large mortgages. The business made
a pre-tax loss of £78m in 2008.
By the start of 2009 Ritchie had cut
costs, but he was still left with 1,000
unsold homes and 2,000 partly built hous-
es on his books.
Ritchie says: “The second step was to
release the cash we had in the business.
“We will buy We had to sell houses, which we did, not
for as much as we would have liked to but
twice as those were the market conditions that pre-
vailed.” In that year the business only built
much land as 800 houses, but sold 1,800. This year the
firm plans to sell 1,900 homes.
we use. This This brings us to the third step in
Ritchie’s plan, began at the start of 2010,
is a great which is to buy up cheap land to take
advantage of the recovery when it comes.
opportunity But for Ritchie a rise in housing activity
is more important than simply a rise in
to buy a key prices. He says: “It is all about getting peo-
ple to get access to mortgages. That’s what
raw material we need to build a bigger business.”
As an example of how tough things are
at the bottom for first time buyers, Ritchie says that in
the last quarter of 2006 around 8,000 first-
of the cycle.” time buyers were able to get mortgages of
90 per cent or more. In the same period in
News 17
2009 that figure fell to “less than 100.”
Bovis attempted to kick start the first
time buyer market by entering into a deal
with the Woolwich in June. The pair
launched a 90 per cent mortgage, which
will see Bovis pay for the mortgage insur-
ance cover if buyers lose their jobs for up to
12 months. “The idea is that we will share
some of the pain. But the result is that only
we are promoting 90 per cent mortgages.”
Ritchie had no figures for the take up so
far, saying it takes a while for schemes like
this to bed in. He adds he expects to see “a
number of real prospects coming in over
the next few months.” On the current state
of the housing market Ritchie says he feels
“okay about life. Any business that has
cash in the bank today is well placed.”
But investors are sceptical, and Bovis,
along with most other housebuilders has
seen its market values fall beneath its net
asset values for large parts of the year. In
Bovis’ case the value of its net assets is cur-
rently £692.8m, while its market capitali-
sation is around £515m.
Ritchie says: “Shareholders buy our
Bovis story, but they are not so sure about
the housing market, so we are saying to
them: ‘When you come back to this sector
make us your housebuilder of choice.’ I can
understand their nervousness.”
Ritchie says the coalition government
“is committed to building more houses”.
The October spending review is likely to
see central government compel local coun-
cils to streamline their applications for
planning permission and relax the
amount of social housing a housebuilder
is forced to allocate to a project.
However, all the indications are that
housing activity will trail behind the 2007
peaks for years to come. House prices are
falling again, according to Rightmove,
which will eventually make homes more
affordable but could hit housebuilders.
One thing is clear: Ritchie, and the
investors in his sector, are playing a long
game. It will be several years before we
know whether their bet has paid off.
 18 Banking Commission Focus
Risky lending should not have state insurance
EXPERT VIEW
ANDREW LILICO
T
he Vickers Commission issues
paper floats a number of
options for structural reform of
the banking sector. As expected,
one such option is a strict division
between retail and investment banks,
and another is an even more radical
switch to “narrow” or “limited pur-
pose” banking, in which fractional
reserve banking is simply ended.
What problem are these proposals
attempting to address? No politician
wants to be Argentine President
Fernando De la Rua, forced to flee by
helicopter from the roof of the presi-
Hester to join
commission’s
public debate
▲
BANKING
BY VICTORIA BATES
STEPHEN Hester, the chief executive
of the Royal Bank of Scotland, at the
weekend became the first of the UK’s
biggest bank bosses to commit to
playing a role in the independent
banking commission’s upcoming
public debates.
The debates, five of which will be
held before the New Year, are
designed to engage the general pub-
lic in the commission’s inquiry into
the future shape of the bank sector.
The first is expected to be held
around the end of next month, when
the commission is set to invite a
diverse mix of bank bosses, regulato-
ry figures, consumer body represen-
tatives and academics to discuss the
primary issues facing the sector.
Banks threatening to quit UK over new plans
MAYOR’S COMMENT
NICK ANSTEE
F
OR SOME time now, the City of
London has warned of a “tipping
point” – a point in time where
the benefits of being based in
the UK no longer outweigh the tax
and regulatory burden.
dential palace to escape a baying mob
after the collapse of the banking sys-
tem left depositors unable to access
their funds. When banks come under
pressure, the natural political tenden-
cy will be for politicians to bail them
out, sparing bondholders. Even if
banks are allowed to go under, depos-
itors are typically provided with state
insurance.
Since bank deposits are thus
implicitly or explicitly insured by the
state, what the bank does with those
deposits is of virtually no concern to
the depositors themselves, and (inso-
far as regulation allows it) the banks
can therefore use deposits to take
large risks. If all turns out well, the
bankers and shareholders receive
high returns. If matters turn out
badly, then the state bails out the
bondholders and depositors.
The retail/investment split is
intended to limit this gaming of gov-
ernment insurance. But it doesn’t
really address the problem, because
banks can still make commercial
An RBS spokesman confirmed the
bank is “very willing to engage in
whatever way we need to”.
RBS’s commitment to the process
comes after the commission, chaired
by former Office of Fair Trading boss
Sir John Vickers, on Friday launched
its initial “issues paper”. The paper
confirmed that the commission will
analyse in depth ways to reform bank
structure – including the separation
of retail and investment banking, the
introduction of wind-down require-
ments such as living wills and limits
on proprietary trading and invest-
ment – as well as investigating the
level of concentration in the UK’s
retail banking market.
The commission will this week
issue the main UK banks – including
RBS, Lloyds, Barclays, HSBC, Standard
Chartered and Spanish bank
Many commentators have dis-
missed this warning as an empty
threat from an industry looking for a
return to the pre-crisis status quo.
However, it is now becoming clear
that there is a tipping point. Three of
the five biggest lending banks in the
UK – HSBC Holdings, Barclays and
Standard Chartered – have stated
they will seek to relocate if the gov-
ernment forces banks to split retail
and investment divisions.
Last Friday, the Government’s
Independent Banking Commission
published an “Issues Paper” outlining
the agenda for its year-long investiga-
tion into the structure of the British
banking system.
loans to businesses or personal loans
to households, both of which are
risky. A retail/investment split would
thus encourage banks to make really
risky business or personal loans at
high interest rates. The basic prob-
lem isn’t solved, but in the meantime
we destroy an industry in which
Britain is strong internationally —
universal banking.
“Narrow banking” and “limited
purpose banking” do address the
problem, but go too far. With “nar-
row banks”, for example, deposit-tak-
ing banks would have to back any
deposits 100 per cent with govern-
ment bonds, ending “fractional
reserve” banking. But fractional
reserve banking has been the main
form of banking in the UK for about
two hundred years, and has become
enormously sophisticated and suc-
cessful. Furthermore, it is economi-
cally efficient to use fractional
reserves.
Many commentators suggest that
we should do neither of these things,
RBS’s Stephen Hester
has become the first UK
bank boss to commit to
upcoming public
debates. He will appear
at at least one.
Picture: Micha Theiner
/City A.M.
Santander, which bought Bradford &
Bingley, Alliance & Leicester and
Abbey during the crisis – with a ques-
tionnaire about their operations,
likely to range in scope from their
financial health to future strategy.
Personally, I do not think the
Commission will recommend UK-
based banks be split up but the idea
was included in the “Issues Paper”
and thus remains a realistic option.
We must remember that it was not
the integrated banks that failed and
economic historians have suggested
that commercial banks with affiliates
are less likely to fail than stand alone
commercial banks.
Striking out on our own like this
would represent a huge risk – no
other major economy has shown any-
inclination to follow this path.
Artificially restricting the ability of
banks based in the UK to service all of
the business needs of their clients
but instead just rely upon high capi-
tal and liquidity ratios to stop banks
ever going bust and hence the issue of
bailouts ever arising. But company
failure is an essential part of a
healthy capitalist economy. If there is
no risk of failure, there is not enough
risk.
There is a combination of solutions
that addresses the real problem with-
out destroying our banking system.
The most important component of
these is a change to the structure of
deposit-taking, whereby every bank
licensed to accept retail deposits
must offer a “storage deposit”
account that is 100 per cent backed by
government bonds.
These accounts would be legally
insulated from the rest of the bank,
akin to the nesting of an old-fash-
ioned savings bank (like the “trustee
savings banks”) inside every fraction-
al reserve bank. Storage deposits
would be insured by the government
without limit.
In addition, banks could offer
After the public phase of the con-
sultation concludes at the end of the
year, the bosses of those banks will be
hauled before the commission to
give evidence in private. They will
face Vickers and the other four mem-
then would result in many of these
banks moving overseas. This would
leave us with fewer jobs and lower tax
revenues and would be hugely detri-
mental to the UK’s future prosperity.
There are better ways to add securi-
ty and certainty to the financial mar-
ketplace and there is a great deal of
regulation due to come into force
before the Commission announces its
results next summer, not least Basel
III’s recommendations setting out
higher capital and liquidity require-
ments. But the final recommenda-
tions may well surprise us all and it
would be very hard for the govern-
ment to ignore any major proposals
put forward by its own Commission.
CITYA.M. 27 SEPTEMBER 2010
“investment deposit” accounts — stan-
dard fractional reserve deposits that
the bank could use to invest in com-
mercial loans, equities, derivatives, or
whatever else its business model
employed. Investment deposits
would be completely uninsured by
the state — and depositors would be
warned before moving monies out of
storage and into investment deposits
that they could lose their money —
but would be subject to standard pru-
dential regulations on capital and liq-
uidity. Some banks would attract
investment deposits by being boring
and safe; others by being risky and
offering higher interest rates. This
structural reform addresses the core
of the issue, removing state insurance
from risky lending, and yet leaves uni-
versal banking (and fractional reserve
banking in general) intact. I think
that’s the way to go.
Andrew Lilico is the Chief Economist of
Policy Exchange, and the author of “What
Killed Capitalism” and “Incentivising
Boring Banking”.
ANALYSIS l Barclays
360 p
340
300
311.75
24 Sep
260
28 Jun 16 Jul 5 Aug 25 Aug 15 Sep
ANALYSIS l Lloyds 76.65
80 p 24 Sep
75
65
55
28 Jun 16 Jul 5 Aug 25 Aug 15 Sep
ANALYSIS l RBS
51 p 49.29
50 24 Sep
48
46
44
26 Aug 3 Sep 10 Sep 13 Sep
bers of his team – ex-Barclays boss
Martin Taylor; Claire Spottiswoode,
the former head of energy regulator
Ofgas; JP Morgan’s ex-co-head of
investment banking Bill Winters;
and FT columnist Martin Wolf.
Speculation is already mounting as
to the attitudes of the five individuals
on the panel. The Commission must
be strong enough to withstand exter-
nal pressures and must also be pre-
pared to accept that this is not a
popularity contest.
It is the responsibility of the bank-
ing sector to uphold and, where nec-
essary, to repair its tarnished imagej.
Much progress has already been
made; it is the job of the Independent
Banking Commission to ensure our
banking system is structured so it
minimises the risks and maximises
the benefits to the UK taxpayer.
Nick Anstee is the Lord Mayor of the City of
London
CITYA.M. 27 SEPTEMBER 2010 News 19

US alone in
Government JAPAN KEEPS CLOSE EYE ON YEN’S IMPACT

yuan focus
retirement for the G20
ideas slated

▲
BANKING
BY HARRY BANKS
US Treasury Secretary Timothy
Geithner faces a lonely campaign to
make China’s currency a major issue
UK ECONOMY DRA to retire staff at 65 would at the next Group of 20 summit as
▲

BY MATTHEW WEST
THE Institute of Directors (IoD) has crit-
icised government proposals to abolish
the default retirement age (DRA) of 65
saying the proposals will make it hard-
er to create jobs.
The government is currently con-
sulting on plans to scrap the DRA in
October 2011 arguing many older peo-
ple are forced into retirement.
But the IoD said yesterday a better
option would be to raise the DRA pro-
gressively in line with both the rise in
life expectancy and the national state
pension age.
It said if the DRA were abolished,
employers would be forced to sack
underperforming staff rather than let
them retire leading to a lengthy and
expensive dismissal process. It would
also mean management time was
diverted away from growing business-
es and jobs into fighting claims of
unfair dismissal.
Small firms without a human
resources (HR) department would feel
under pressure to live with underper-
forming staff over the age of 65, it
added, which would have a damaging
effect on business performance and
deny promotion opportunities to
higher performing staff.
Moreover, bigger companies know-
ing they could no longer rely on the
instead concentrate on removing
them by means of performance cri-
tieria earlier, meaning most people
would effectively be retired at the age
of 60.
Miles Templeman, director-general
of the IoD said the government’s pro-
posal to abolish the DRA showed min-
isters were not interested in
supporting the business community.
“Removing the DRA, which gives
employers flexibility in managing
employees, is incompatible with the
government’s stated desire to boost
enterprise and create new jobs. In this
era of high unemployment the gov-
ernment should be making it easier
for businesses to employ people, not
harder,” Templeton added.
But pensions expert Dr Ros Altman
accused the IoD of “living in the dark
ages.”
She said: “We all know age discrim-
ination is a real problem in the work-
place. In this day and age people are
not old at 50 or 60 anymore. All the
proposals mean is that if employers
want to get rid of their older employ-
ees they will have to justify doing so
on the basis of their performance in
the same way as they would have to a
40-year old. It’s not a good enough
reason to simply get rid of someone
because they have reached the age of
65.”
would-be allies shrink from con-
fronting Beijing.
Pressured by US lawmakers,
Geithner vowed last week to mobilise
countries at the 11-12 November sum-
mit in South Korea to press China for
faster appreciation of the yuan.
Interviews with officials from G20
countries suggest that Geithner –
who has acknowledged that few
countries are willing to confront
China – could be leading a posse of
one in Seoul.
“The US is more determined than
the rest of the G20 to get something
out of China on the yuan,” a
Eurozone monetary official said,
speaking on condition of anonymity.
“It’s largely a bilateral matter with
the rest looking on as spectators,
either because they don’t count
enough or because they aren’t very
interested,” the official said.
South Korean Finance Minister
Yoon Jeung-hyun ruled out the yuan
as a G20 topic, saying the forum
might take up exchange rates in gen-
eral or their impact on the global
economy.
Geithner’s drive to make China’s
currency policy a G20 summit issue
JAPAN will ease monetary policy appropriately if necessary, while keeping an eye on the appears to be a way to buy time for
impact of the yen’s rise on the economy, Bank of Japan (BOJ) governor Masaaki President Barack Obama’s adminis-
Shirakawa (pictured) said. He also said the BOJ was watching the “downside risk” to the tration in the run-up to the 2
economy more closely. Picture: GETTY November elections.

David Ross considers dismantling

debt-laden property firm Kandahar Managed Print Services

PROPERTY ny, according to the reports, but through Kandahar in 2008. He used
‡ Document
▲

BY MARION DAKERS
THE CO-FOUNDER of Carphone
Warehouse is set to break up his
property empire and dispose of
debt-laden assets, according to
reports yesterday.
David Ross has hired property
consultants Jones Lang LaSalle and
Cushman &Wakefield to advise on
the options for his Kandahar Group
retail property company, reported
the Sunday Telegraph. Neither com-
pany could confirm the claims yes-
terday.
There are several parties interest-
ed in puchasing the entire compa-
Ross has begun to plan for a £230m
sale of the Drake Circus shopping
centre in Plymouth in case a bidder
cannot be found.
Ross has been using his own
money to meet interest payments
and keep Kandahar afloat since the
firm breached banking covenants
in December 2009.
Kandahar was set up as a £500m
joint venture with Morgan Stanley,
but was badly hit by tumbling prop-
erty values during the financial cri-
sis.
Ross was caught up in an FSA
investigation after he inadvertently
broke shareholder disclosure rules
his 20 per cent stake in Carphone
Production
Warehouse as security for
Kandahar’s refinancing, but did not ‡ Marketing
tell the boards of the companies. Collateral
He stepped down from a series of
high-profile roles at Carphone ‡ Exhibition
Warehouse, National Express and Graphics
the London Olympic Games in the
wake of the news, and prompted
the FSA to declare an amnesty for
the scores of other directors who
had also pledged shares to back per-
sonal loans.
Kandahar was unavailable for
comment yesterday, while the on-
duty manager at Drake Circus
declined to comment.

NEWS | IN BRIEF
Coke to stay on Wall Street
Coca Cola Enterprises (CCE) will
remain listed on Wall Street although
it could one day take a secondary list-
ing on the London Stock Exchange
(LSE), an insider has told City AM. The
news comes as the board of CCE,
which bottles and distributes the soft
drink, votes on whether to sell its
North American distribution business
to Coca-Cola on 1 October in a deal
valued at £9.5bn. The deal had
prompted speculation that CCE, which
employs around 4,500 people in the
UK, might move to the LSE. The source deadline, a top Abu Dhabi official said.
said a listing in London “would only be The UAE has threatened to suspend
something that would happen in the Research In Motion’s BlackBerry
long term and it would only ever be a
secondary listing. CCE would maintain
Messenger, email and Web browser
services from 11 October until the gov- Create sPrint sDeliver
its primary listing on the New York ernment could get access to encrypted Print centres throughout Central London
Stock Exchange and would remain list- messages. "We are very optimistic
ed in dollars.” about the outcome. We both are work-
ing very hard trying to resolve the Call us now on
UAE set to agree on BlackBerry issues.. .it’s going to be solved before
The United Arab Emirates is “very opti- the deadline," Mohammed al-Bawardi, 0800 93 94 93
mistic” about reaching an agreement secretary general at Abu Dhabi’s exec-
in a dispute with BlackBerry maker utive council, said yesterday. The UAE www.color.co.uk
Research In Motion before an official has some 500,000 BlackBerry users.
 20 News
Knight Frank
cautious after
bumper year
▲
PROPERTY
BY MARION DAKERS
ESTATE agent Knight Frank said it
expects to suffer after the govern-
ment’s spending review next month,
as the firm announced a 168 per cent
rise in profit to £58.4m for last year.
The group said yesterday that all of
its branches were in profit, with par-
ticular strength in the UK and Asia
pushing revenue up 13 per cent to
£288m for the year to 31 March.
However, senior partner Nick
Thomlinson said: “Going forward,
with public sector debt the equivalent
of more than half of the UK GDP, the
issue remains to what extent the
recovering private sector will be able
to compensate for the anticipated cuts
to the public sector.
“Consequently 2011 is expected to
be a more difficult year, both in eco-
nomic and property performance
terms.”
Thomlinson added that property
prices continued to rise over the sum-
mer, though the pace of growth had
CITYA.M. 27 SEPTEMBER 2010
McGrigors looks
at UK expansion
with new post
LEGAL
▲
MCGRIGORS, one of Scotland’s largest
law firms, has overhauled its manage-
ment structure after appointing Kirk
Murdoch as the new UK-wide senior
partner.
Murdoch, who has been a partner
slowed. with the law firm for 28 years, will
Meanwhile, the firm benefited assume the newly created role at the
from sales in Hong Kong, where start of next month.
rental rates increased at the fastest His new post, which will effectively
pace in the world last year. It said see him act as the firm’s chairman,
modest rises seen in Shanghai, Sydney will hand him responsibility for the
and Singapore last year should spread firm’s entire network of offices in
to the rest of Asia by 2011. Scotland, England and Northern
Last year’s profit translated into an Ireland.
average bonus of £600,000 for each of The move is a step away from
Knight Frank’s 59 partners, though McGrigor’s original structure, which
the firm declined to say how much saw the senior partner post shared
individual partners received. Knight between two individuals but only
Frank more than doubled its budget oversaw the firm’s English and
for bonuses and commission, spend- Scottish business.
ing £35.5m last year. Murdoch had shared the senior
The company said it remains free of position with London-based partner
debt, with around £74m available Phillip Burroughs, who is set to stand
cash and a £30m unused debt facility. down from the board at the end of
the month.
FAST FACTS | KNIGHT FRANK McGrigors is hoping that
Murdoch’s appointment will help to
● The estate agent operates from 209 offices bolster its profile beyond its Scottish
in 43 countries practice and compete with the likes
● Notable deals include advising on the £671m of Eversheds.
White Tower asset sale and acting as leasing As part of the management over-
agent on the Walkie Talkie skyscraper haul, Richard Masters will remain as
Knight Frank chief Nick Thomlinson sees trouble ahead Picture: Micha Theiner/City A.M. managing partner.
CITYA.M. 27 SEPTEMBER 2010
ECI snaps up a stake in XLN
Niche telecoms provider XLN has
▲
TELECOMS
seen its revenue grow from £27m in
BY STEVE DINNEEN 2007 to £54m this year.
PRIVATE equity group ECI Partners Tom Wrenn, who led the deal for
has snapped up a majority stake in ECI, said: “XLN is a superb growth
XLN Telecom, the UK’s largest business in a sector that has per-
provider of fixed-line, mobile and formed strongly during the recent
internet services to small businesses. downturn. It is led by a high-quality
ECI has backed the current man- management team that has a clear
agement and has pledged to inject vision for the future. XLN has consid-
funds to double the size of the busi- erable scope to add more products
ness. and services and is in an excellent
The firm bought the controlling position to act as a platform for con-
stake from Zeus Private Equity for an solidation in the fragmented tele-
undisclosed fee. However, City A.M. coms market. We will provide
understands Zeus received a multiple additional capital to continue to
of 4.5 times its initial investment of grow the business.”
£6.63m, valuing the stake at approxi- Christian Nellemann, chief execu-
mately £29.8m. tive of XLN Telecom said: “We have
Lenders take
over Goldman
Sachs offices
▲
PROPERTY
explain what, if any, relationship it
BY MARION DAKERS has with Antedon. Jesta refused to
GOLDMAN Sachs’ headquarters in answer questions when contacted
London has been taken over by yesterday.
lenders after the owner fell into Carter Lemon Camerons, the law
receivership, it emerged yesterday. firm said to be acting for Antedon,
The buildings in Fleet Street was unavailable for comment.
belonged to Antedon, an offshore Goldman has a lease on the two
real estate firm, which has default- buildings until 2026, which should
ed on a loan, according to a week- not be affected by the receivership
end report. proceedings.
Antedon’s lenders, led by The banking group also occupies
Landesbank subsidiary Berlin Hyp, the River Court building in Fleet
have appointed Jones Lang LaSalle Street, which has been owned by a
as receiver for the properties. consortium of Irish investors since
A spokesperson for Jones Lang it was built in 2000. Reports over
LaSalle confirmed this yesterday, the summer claimed the building,
adding: “We are currently reporting previously home to the Daily
to stakeholders on strategic options Express, would be put on the mar-
for these assets. No decision on any ket shortly.
disposal has been made at this Goldman has based its European
stage.” headquarters on Fleet Street since
Antedon is thought to have 1991, and now has more than 5,000
bought Peterborough Court and employees in its London offices. The
Daniel House for £355m in 2007, Peterborough Court building is the
the height of the property boom. A former headquarters of the Daily
company trading as Jesta Capital Telegraph, and its art deco entrance
now claims to own Peterborough is often used as a setting for film
Court on its website, but does not and television productions.
CITY MOVES | WHO’S SWITCHING JOBS
Barclays
Leigh Clifford, the chairman of Qantas Airways,
is to step down from his role as a non-executive
on the Barclays board at the end of the month.
Clifford joined the bank’s board in October
2004. In addition to his position at Qantas, he
is also a director of engineering giant Bechtel
Group and a senior adviser to private equity
firm Kohlberg Kravis Roberts.
He was formerly chief executive of Rio Tinto
from 2000 until 2007.
Caxton FX Craig, 45, joins from Northern Trust
The foreign currency exchange broker Wealth Management, where he was a
has appointed John Craig as its new senior vice president responsible for
chief operating officer. strategic development across the
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
been able to transform a niche and
historically overlooked sector of the
market.
“We now have a highly profitable
and scalable business that will allow
us to rapidly expand the range of serv-
ices we deliver to the small business
market. We are delighted that ECI
will be a key part of the firm’s next
chapter.”
FAST FACTS | ECI
● ECI manages private equity funds with a
capital base of over £880m and has provided
funds for over 250 companies.
● It specialises in buyouts, buy-ins and develop-
ment capital deals of £10m to £150m.
BEST OF THE BROKERS
ANALYSIS l BHP Billiton
2,050
p
2,009.50
24 Sep
1,950
1,850
1,750
1,650
28 Jun 16 Jul 5 Aug 25 Aug 15 Sep
BHP BILLITON
Evolution Securities says the balance of
probabilities moving forward on BHP
Billiton’s bid for Canadian owned Potash
Corporation is in the mining company’s
favour. The broker reiterates a “buy” for
BHP because the company is not stinting
on other growth investments by virtue of
its strong balance sheet.
White Stuff shows it has the right stuff
▲
RETAIL
FASHION retailer White Stuff has
defied the recession to increase prof-
its by 59 per cent compared to last
year.
The company, which was set up by
Sean Thomas and George Treves, also
saw a 43 per cent lift in turnover in
the year to the end of May.
The firm’s turnover jumped from
£58.4m to £83.7m and it also saw a
Edited by Victoria Bates
Europe, Middle East and Africa (EMEA)
region, focusing on the ultra high net
worth sector.
Jefferies
Gerard Reid has joined the investment
bank as a managing director and senior
equity research analyst in London,
focusing on clean technology.
Reid was most recently European
head of Ardour Capital Investments.
He has also previously held positions
as a managing director at Berlin-based
Oikovest, advising clients in the alterna-
tive energy sector, and head of research
and a senior partner at independent
equity research house First Berlin.
PwC first to add senior
City figures to the board
▲
PROFESSIONAL SERVICES
ACCOUNTING firm PwC is set to
become the first accountancy prac-
tice to add independent directors to
its board after the appointment of
three senior businessmen as non-
executive directors.
Former Rio Tinto chairman, Paul
Skinner will be joined by WM
Morrison chairman Sir Ian Gibson
and Cable & Wireless chairman Sir
Richard Lapthorne as independent
directors to sit on PwC’s board.
The accountancy firm has also
appointed Dame Karen Dunnell, for-
ANALYSIS l Groupe Eurotunnel
€
6.39
24 Sep
6.4
6
5.6
5.2
28 Jun 16 Jul 5 Aug 25 Aug 15 Sep
GROUPE EUROTUNNEL
Nomura’s confidence in its forecasts for
Eurotunnel is increasing. The broker is
becoming more confident that the focus on
higher-yielding smaller customers, com-
bined with the market growing again dur-
ing the first half, should see Eurotunnel’s
market share return to previous levels. The
broker reiterates a “buy”.
To appear in Best of the Brokers email your research to notes@cityam.com
healthy hike in profits, from £9.2m to
£14.6m before tax.
It reported growth across all areas
of the business, especially in hom
shopping, where revenue doubled to
£8.9m.
White Stuff, which currently
employs around 1,300 people, is now
looking to expand, with an extra 270
employees likely to be taken on this
year.
It is also looking to open another
in association with
SVM Asset Management
The boutique investment group has
appointed Neil Veitch, manager of its
SVM UK Opportunities Fund and co-
manager of the SVM All Europe SRI
fund, as a board director.
Veitch joined the group in 2005 from
Kempen Capital Management, where
he managed both retail and institution-
al pan-European small and mid-cap
portfolios.
KPMG
The accountancy giant has hired three
new staff to its financial services reme-
diation practice.
Jarrod Nicholson, John Seaton and
News 21
mer head of the Office of National
Statistics and vice-chancellor of the
University of Oxford, as non-execu-
tives to its newly created public inter-
est body.
The move by the “big four” firm
comes as a response to new regula-
tions outlined by oversight body, the
Financial Reporting Council, requir-
ing the top eight accounting firms in
the UK to add independent directors
to ensure effective governance.
It is understood that Deloitte, Ernst
& Young and KPMG are set to make
the same move in the coming
months.
ANALYSIS l EADS
€
19.25
24 Sep
19.5
18.5
17.5
16.5
15.5
7 Jul 27 Jul 16 Aug 3 Sep 23 Sep
EADS
JP Morgan Cazenove upgrades EADS to an
“overweight” rating based on healthy trad-
ing posted by Airbus. After a decade of
trading Airbus profits at a rate 20 per cent
better than the prevailing spot rate, the
broker says hedge and spot rates have now
converged. The broker expects Airbus to
remain in profit despite production issues.
10 stores by the end of the year and
double the size of its distribution cen-
tre.
Despite the recession-beating suc-
cess, chief executive Sally Bailey said
the company was unlikely to main-
tain such a high level of growth.
She said as well as facing the obsta-
cles of the expected government cuts
and tax increases, the bottom line
was likely to be affected by the
increasing cost of cotton.
Caroline Walters all join from
Huntswood, as a director and senior
managers respectively.
CISI
The Chartered Institute for Securities
and Investment has appointed Dr
Robert Barnes, Fionnuala Carvill and
Nick Parkes to its board of directors.
Barnes is currently a managing direc-
tor in the equities business at UBS,
while Carvill, an ex-director of
Rothschild, is commission secretary at
the Guernsey Financial Services
Commission. Parkes is a partner at cor-
porate finance advisory firm Novitas
Partners.
+44 (0)20 7557 7245
morganmckinley.com
 Markets&Investment
22 CITYA.M. 27 SEPTEMBER 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .288.00 +6.10 310.00 246.90 Compass . . . . . . . . . . . . . . . . . .543.50 +3.00 574.50 350.10 JPMorgan Emerg Mkts . . . . . . . .580.00 +1.00 587.50 437.10 SABMiller . . . . . . . . . . . . . . . . .2027.00 +36.00 2090.00 1450.00
3i Infrastructure . . . . . . . . . . . . . 114.10 +0.30 115.00 97.00 Cookson . . . . . . . . . . . . . . . . . . .515.00 +15.70 616.00 347.60 Jupiter Fnd Mgmt . . . . . . . . . . . .239.00 –1.40 256.50 180.00 Sage . . . . . . . . . . . . . . . . . . . . . .258.20 +1.50 262.20 208.20
A.B. Foods . . . . . . . . . . . . . . . .1071.00 +4.00 1096.00 790.00 Croda Intl . . . . . . . . . . . . . . . . .1450.00* +33.00 1460.00 637.00 Kazakhmys . . . . . . . . . . . . . . . .1421.00* –7.00 1634.00 955.00 Sainsbury(J) . . . . . . . . . . . . . . . .395.00 +5.30 395.60 307.60
Aberdeen Asset Man . . . . . . . . . .159.80 +7.40 159.80 111.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . . 511.50 +12.50 539.00 381.00 Kesa Electricals . . . . . . . . . . . . .141.70* +0.60 162.00 98.45 Schroders . . . . . . . . . . . . . . . . .1440.00 +44.00 1450.00 1053.00
Admiral. . . . . . . . . . . . . . . . . . .1632.00 –11.00 1686.00 1003.00 Dana Petroleum . . . . . . . . . . . .1797.00 +4.00 1817.00 968.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .231.30 +6.40 255.00 196.50 Schroders N/V. . . . . . . . . . . . . . 1170.00 +31.00 1187.00 864.00
Aegis . . . . . . . . . . . . . . . . . . . . .122.80* +1.60 137.30 103.10 Davis Service . . . . . . . . . . . . . . .401.80* +7.40 442.30 356.00 Ladbrokes . . . . . . . . . . . . . . . . .137.80* –1.70 172.41 114.60
Afren . . . . . . . . . . . . . . . . . . . . .108.50 +1.60 111.00 73.00 Debenhams . . . . . . . . . . . . . . . . .65.60 +0.55 90.00 51.95 Lamprell . . . . . . . . . . . . . . . . . . .342.00* +12.10 344.30 156.70 Scot. & Sthrn Energy. . . . . . . . . 1125.00* –8.00 1206.00 357.50
African Barr Gold . . . . . . . . . . . .596.50* –3.50 685.00 520.50 Derwent London . . . . . . . . . . . .1540.00 +36.00 1543.00 1174.00 Lancashire Hldgs . . . . . . . . . . . .559.50* +4.50 564.00 416.70 Scottish Mortgage. . . . . . . . . . . .632.00 +5.50 633.50 475.00
Aggreko . . . . . . . . . . . . . . . . . .1534.00* –11.00 1639.00 664.50 Dexion Absolute . . . . . . . . . . . . .140.20 +0.20 148.00 127.60 Land Securities . . . . . . . . . . . . . .638.50* +13.50 743.50 543.00 SEGRO . . . . . . . . . . . . . . . . . . . .267.00* +3.60 390.00 244.00
Alliance Trust . . . . . . . . . . . . . . .336.80 +4.70 352.70 292.80 Diageo . . . . . . . . . . . . . . . . . . .1098.00* +6.00 1176.00 930.50 Legal & General . . . . . . . . . . . . .103.00* +1.70 105.00 69.05 Serco . . . . . . . . . . . . . . . . . . . . .625.50* +3.00 656.50 485.60
AMEC . . . . . . . . . . . . . . . . . . . . .993.50 +20.00 1000.00 724.50 Dimension Data . . . . . . . . . . . . . 119.80 +0.20 125.50 59.30 Lloyds Banking Gp . . . . . . . . . . . .76.65 +1.56 79.15 45.30 Severn Trent . . . . . . . . . . . . . . .1340.00 –4.00 1404.00 939.50
Amlin . . . . . . . . . . . . . . . . . . . . .398.40* –1.20 437.60 350.80 Dixons Retail . . . . . . . . . . . . . . . .24.24 +0.59 39.75 23.07 Logica . . . . . . . . . . . . . . . . . . . .125.20* +0.10 149.10 100.80 Shaftesbury . . . . . . . . . . . . . . . .452.00 +10.60 453.10 341.70
Anglo American . . . . . . . . . . . .2535.00 –15.50 3015.50 1846.50 Domino’s Pizza . . . . . . . . . . . . . .472.80 +0.10 481.10 273.10 London Stk Exchange . . . . . . . . .702.50 +13.50 949.50 540.50 Shire. . . . . . . . . . . . . . . . . . . . .1472.00* +10.00 1532.00 999.00
Antofagasta . . . . . . . . . . . . . . . 1181.00* –30.00 1222.00 699.50 Drax . . . . . . . . . . . . . . . . . . . . . .394.70 +2.40 479.30 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1718.00 +25.00 2198.00 1344.00 Smith & Nephew . . . . . . . . . . . . .576.50 +10.00 700.50 525.50
Aquarius Platinum . . . . . . . . . . .337.10* +6.20 490.00 211.50 Dunelm . . . . . . . . . . . . . . . . . . . .390.90 +7.40 438.40 303.00 Man . . . . . . . . . . . . . . . . . . . . . .221.80 +1.80 373.60 199.60 Smiths . . . . . . . . . . . . . . . . . . .1227.00 +21.00 1253.00 814.00
ARM Holdings . . . . . . . . . . . . . . .414.60* +23.80 417.50 134.40 Easyjet . . . . . . . . . . . . . . . . . . . .378.00 +0.10 499.90 339.80 Marks & Spencer. . . . . . . . . . . . .380.50 +6.00 412.70 321.90 SOCO Intl . . . . . . . . . . . . . . . . . .441.70 –5.30 510.00 380.60
Ashmore . . . . . . . . . . . . . . . . . . .330.10 +6.50 336.80 215.00 Edinburgh Inv Tst . . . . . . . . . . . .427.10 +3.90 436.00 338.00 Meggitt . . . . . . . . . . . . . . . . . . . .299.90* +6.40 331.00 220.10 Spectris . . . . . . . . . . . . . . . . . .1016.00 +11.00 1043.00 653.00
Astrazeneca . . . . . . . . . . . . . . .3334.00 +22.50 3389.50 2668.00 Electrocomponents . . . . . . . . . . .233.80 +0.90 246.30 142.90 Melrose . . . . . . . . . . . . . . . . . . .265.50* +1.00 275.10 160.00
Atkins(Ws) . . . . . . . . . . . . . . . . .739.00* +5.00 801.00 532.50 EnQuest . . . . . . . . . . . . . . . . . . . 115.70 +1.60 125.90 87.35 Mercantile IT . . . . . . . . . . . . . . . .961.00 +8.50 1002.00 822.50 Spirax-Sarco Eng . . . . . . . . . . .1764.00 +70.00 1768.00 1001.00
Autonomy Corp . . . . . . . . . . . .1771.00 +4.00 2012.00 1278.00 Essar Energy . . . . . . . . . . . . . . .441.00 +3.40 475.90 358.50 Michael Page Intl. . . . . . . . . . . . .457.90* +5.20 470.70 314.40 Spirent Comms . . . . . . . . . . . . . .139.90 +1.80 145.10 84.15
Aveva . . . . . . . . . . . . . . . . . . . .1435.00 –17.00 1487.00 856.50 Eurasian Nat Res . . . . . . . . . . . .903.00* +5.50 1276.00 781.00 Micro Focus . . . . . . . . . . . . . . . .366.00* +0.80 550.00 272.20 Sports Direct Intl . . . . . . . . . . . . .134.80 +3.90 136.50 89.85
Aviva . . . . . . . . . . . . . . . . . . . . .400.90* +2.00 474.00 290.20 Euromoney Inst Inv . . . . . . . . . . .601.00 +11.00 630.00 303.00 Millen & Copthorne . . . . . . . . . . .523.50* –4.00 547.00 321.40 SSL Intl . . . . . . . . . . . . . . . . . . . 1158.00 — 1190.00 596.50
Babcock International . . . . . . . . .550.50 +20.00 660.50 489.00 Experian . . . . . . . . . . . . . . . . . . .678.50 +4.50 683.00 516.50 Misys . . . . . . . . . . . . . . . . . . . . .288.30 +1.60 295.80 192.60 St James’s Place . . . . . . . . . . . . .288.90 +6.80 296.90 203.40
BAE Systems . . . . . . . . . . . . . . .347.50 +10.40 389.90 288.10 Ferrexpo . . . . . . . . . . . . . . . . . . .293.70 +1.30 396.20 138.00 Mitchells & Butlers . . . . . . . . . . .301.60 +1.60 343.90 228.30 Stagecoach. . . . . . . . . . . . . . . . .184.20 +0.80 204.90 137.00
Balfour Beatty . . . . . . . . . . . . . . .268.20 +2.90 304.80 228.60 FirstGroup . . . . . . . . . . . . . . . . .350.90 +3.00 443.90 331.20 MITIE . . . . . . . . . . . . . . . . . . . . .198.40 +1.50 258.00 187.80 Standard Chartered . . . . . . . . . .1929.50* +67.50 1946.00 1366.50
Barclays . . . . . . . . . . . . . . . . . . . 311.75 +5.50 394.25 253.40 Foreign & Col Inv Tst. . . . . . . . . .285.30 +1.70 297.20 248.70 Mondi . . . . . . . . . . . . . . . . . . . . .509.50 +5.50 519.00 300.70 Standard Life . . . . . . . . . . . . . . .231.80* +4.10 237.00 170.00
Barratt Development . . . . . . . . . .104.10 +2.20 180.46 89.10 Fresnillo . . . . . . . . . . . . . . . . . .1232.00 +15.00 1240.00 647.00 Monks Inv Tst . . . . . . . . . . . . . . .322.00 +1.40 324.00 265.00 SuperGrp . . . . . . . . . . . . . . . . .1230.00 +24.00 1312.00 499.00
BBA Aviation . . . . . . . . . . . . . . .193.00* –0.30 220.00 145.90 G4S . . . . . . . . . . . . . . . . . . . . . .260.20* +4.10 285.70 217.70 Morrison Wm . . . . . . . . . . . . . . .301.90 +2.20 307.10 255.00 TalkTalk . . . . . . . . . . . . . . . . . . .145.60 +4.20 147.10 106.60
Bellway. . . . . . . . . . . . . . . . . . . .600.00 +11.50 886.50 510.00 Genesis Emerging Mkts Fd . . . . .506.50 +4.50 510.50 370.00 Murray Intl Tst . . . . . . . . . . . . . . .882.00 +7.50 907.50 720.00 Talvivaara Mining . . . . . . . . . . . .462.60 +16.30 501.50 341.40
Berkeley . . . . . . . . . . . . . . . . . . .830.00 +13.00 949.50 735.00 GKN . . . . . . . . . . . . . . . . . . . . . .166.90* +2.90 172.60 100.40 National Express. . . . . . . . . . . . .236.40 –1.10 258.60 155.86 Tate & Lyle . . . . . . . . . . . . . . . . .472.60 +10.60 509.00 388.00
BG . . . . . . . . . . . . . . . . . . . . . . 1169.00 +32.00 1248.00 966.90 GlaxoSmithKline . . . . . . . . . . . .1264.50* +5.50 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .543.00 –5.50 607.65 474.80
BHP Billiton . . . . . . . . . . . . . . .2009.50* +9.50 2346.00 1583.50 Great Portland Estates . . . . . . . .341.80 +7.60 342.50 236.60 Next . . . . . . . . . . . . . . . . . . . . .2219.00 +50.00 2360.00 1726.00 Taylor Wimpey . . . . . . . . . . . . . . .28.96 +0.09 46.34 24.29
BlackRock Mining . . . . . . . . . . . .629.50 +6.50 654.50 474.00 Greene King . . . . . . . . . . . . . . . .425.70 +6.10 484.00 372.50 Northumbrian Water . . . . . . . . . .336.40 –2.10 353.00 225.20 Telecity . . . . . . . . . . . . . . . . . . . .515.00 +5.00 542.50 311.30
BlueBay . . . . . . . . . . . . . . . . . . .342.00 +2.60 393.00 251.00 Halfords . . . . . . . . . . . . . . . . . . .443.20 +2.40 562.50 339.00 Ocado Grp . . . . . . . . . . . . . . . . .138.00 –2.00 169.00 132.00 Templeton Emrg Mkts . . . . . . . . .607.00 +6.50 608.50 449.00
Bluecrest Allblue GBP . . . . . . . . .168.60 +1.00 169.00 144.10 Halma . . . . . . . . . . . . . . . . . . . . .305.70 –1.10 320.50 208.00 Old Mutual . . . . . . . . . . . . . . . . .139.70 +1.80 140.50 94.75 Tesco . . . . . . . . . . . . . . . . . . . . .439.00 +5.30 454.90 368.40
Booker . . . . . . . . . . . . . . . . . . . . .48.19 +0.23 49.99 37.50 Hammerson . . . . . . . . . . . . . . . .406.20* +17.10 460.30 332.20 Partygaming . . . . . . . . . . . . . . . .284.00 +3.30 339.70 205.80 Thomas Cook . . . . . . . . . . . . . . .184.10* –1.90 277.20 172.30
BP . . . . . . . . . . . . . . . . . . . . . . .404.90 –0.20 658.20 296.00 Hargreaves Lansdown . . . . . . . .437.00* –3.00 478.00 259.40 Pearson . . . . . . . . . . . . . . . . . . .992.50 –2.00 1069.00 751.50 Travis Perkins . . . . . . . . . . . . . . .854.00 +30.50 915.00 647.50
Brit Insurance . . . . . . . . . . . . . .1029.00 +4.00 1045.00 709.00 Hays . . . . . . . . . . . . . . . . . . . . . . 110.90 +2.20 119.00 82.50 Pennon . . . . . . . . . . . . . . . . . . . .584.50* –0.50 616.50 440.40 TUI Travel . . . . . . . . . . . . . . . . . .224.00* +0.40 313.90 189.20
British Airways . . . . . . . . . . . . . .243.90 +4.20 255.80 172.40 Henderson . . . . . . . . . . . . . . . . .124.80* +1.10 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .406.50 +7.60 520.00 335.90 Tullett Prebon . . . . . . . . . . . . . . .396.40 +1.40 436.20 261.20
British Amer. Tob . . . . . . . . . . .2430.50* +37.50 2438.00 1832.00 Heritage Oil. . . . . . . . . . . . . . . . .310.80 –1.30 585.00 298.20 Petrofac . . . . . . . . . . . . . . . . . . 1411.00* +14.00 1446.00 900.00 Tullow Oil . . . . . . . . . . . . . . . . .1299.00 +34.00 1375.00 979.50
British Empire Tst . . . . . . . . . . . .462.70 +6.60 467.90 338.50 Hikma Pharma . . . . . . . . . . . . . .701.50* –0.50 813.00 443.00 Petropavlovsk . . . . . . . . . . . . . .1225.00 +16.00 1370.00 834.00 UK Commercial Prop. . . . . . . . . . .80.30 +0.50 84.90 69.10
British Land . . . . . . . . . . . . . . . .472.30 +7.80 515.00 416.00 Hiscox . . . . . . . . . . . . . . . . . . . .370.00* +7.20 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .680.00* — 775.00 550.50 Ultra Electronics . . . . . . . . . . . .1682.00* +22.00 1774.00 1198.00
Britvic. . . . . . . . . . . . . . . . . . . . .474.40 +7.10 518.00 340.00 Hochschild Mining . . . . . . . . . . .438.00 +14.50 440.10 220.00 Premier Farnell . . . . . . . . . . . . . .258.90* +1.90 272.60 140.60 Unilever . . . . . . . . . . . . . . . . . .1793.00 +3.00 2024.00 1662.00
Brown(N.) . . . . . . . . . . . . . . . . . .241.80 +0.70 284.30 204.80 Home Retail . . . . . . . . . . . . . . . . 211.20 +1.10 326.30 207.40 Premier Oil . . . . . . . . . . . . . . . .1659.00 +5.00 1703.00 984.00
BSkyB . . . . . . . . . . . . . . . . . . . .709.00 +1.00 732.00 521.00 Homeserve . . . . . . . . . . . . . . . . .473.00 +4.80 502.00 435.40 Provident Financial . . . . . . . . . . .827.00 +7.00 986.00 795.00 United Utilities . . . . . . . . . . . . . .571.00 –2.00 620.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .143.10 +4.00 151.00 108.40 HSBC Hldgs . . . . . . . . . . . . . . . .666.30* +2.30 766.80 595.20 Prudential . . . . . . . . . . . . . . . . . .615.50* +6.50 665.00 475.70 Utd Business Media . . . . . . . . . .620.50* +5.50 656.50 408.30
Bunzl . . . . . . . . . . . . . . . . . . . . .771.50 +13.50 784.50 613.50 Hunting . . . . . . . . . . . . . . . . . . .624.00 –2.50 659.50 429.10 PZ Cussons . . . . . . . . . . . . . . . .364.80* +4.50 382.70 227.10 Vedanta Resources . . . . . . . . . .2281.00 +21.00 2967.00 1795.00
Burberry . . . . . . . . . . . . . . . . . .1002.00 +56.50 1006.00 483.90 ICAP . . . . . . . . . . . . . . . . . . . . . .431.50 +1.30 478.30 291.70 Qinetiq . . . . . . . . . . . . . . . . . . . . 111.00 +0.60 179.10 103.50 Victrex . . . . . . . . . . . . . . . . . . .1245.00 +18.00 1320.00 726.50
Cable & Wire Comms . . . . . . . . . .60.75 +0.75 150.00 53.00 IG . . . . . . . . . . . . . . . . . . . . . . . .501.50* +4.80 532.00 291.00 Randgold Resources. . . . . . . . .6485.00 –75.00 6620.00 3930.00 Vodafone . . . . . . . . . . . . . . . . . .160.95 –0.85 164.95 126.50
Cable & Wire Wwide . . . . . . . . . . .74.95 +0.95 94.80 60.05 Imagination Tech Gp . . . . . . . . . .384.80 +28.40 399.00 154.00 Reckitt Benckiser . . . . . . . . . . .3538.00* +43.00 3667.00 2938.00 Weir . . . . . . . . . . . . . . . . . . . . .1380.00 +9.00 1459.00 635.00
Cairn Energy. . . . . . . . . . . . . . . .459.90 +12.50 497.60 306.80 IMI . . . . . . . . . . . . . . . . . . . . . . .758.00* +12.00 786.00 410.00 Reed Elsevier . . . . . . . . . . . . . . .540.50 +3.50 566.00 454.60 Wellstream Hldgs . . . . . . . . . . . .776.00* — 810.00 429.70
Caledonia Invs . . . . . . . . . . . . .1640.00 +15.00 1759.00 1496.00 Imperial Tobacco. . . . . . . . . . . .1940.00 –3.00 2159.00 1728.00 Regus . . . . . . . . . . . . . . . . . . . . . .76.00* –0.05 125.50 64.05 WH Smith . . . . . . . . . . . . . . . . . .448.40 +0.60 551.00 392.20
Capita . . . . . . . . . . . . . . . . . . . . .771.00* +13.50 829.50 693.00 Inchcape. . . . . . . . . . . . . . . . . . .304.60 +7.00 347.00 235.00 Renishaw . . . . . . . . . . . . . . . . .1022.00* +22.00 1038.00 479.00 Whitbread . . . . . . . . . . . . . . . . .1622.00 +28.00 1645.00 1141.00
Capital & Counties . . . . . . . . . . .132.50 +1.00 137.50 99.60 Informa . . . . . . . . . . . . . . . . . . . .418.30 +9.20 439.40 263.30 Rentokil Initial . . . . . . . . . . . . . . .103.60 +0.80 140.20 91.15 William Hill . . . . . . . . . . . . . . . . .172.90 –1.60 217.80 160.50
Capital Shopping Centres . . . . . .368.60 +3.90 533.50 300.10 Inmarsat . . . . . . . . . . . . . . . . . . .703.00 +7.50 831.00 526.00 Resolution . . . . . . . . . . . . . . . . .233.30* +3.60 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .465.00 +4.50 487.00 396.30
Carillion . . . . . . . . . . . . . . . . . . .317.80* +2.80 361.90 263.90 Intercontl Hotels . . . . . . . . . . . . 1134.00* +20.00 1244.00 762.50 Rexam . . . . . . . . . . . . . . . . . . . .310.50* +3.30 348.80 253.40
Carnival . . . . . . . . . . . . . . . . . . 2511.00 +24.00 2937.00 1876.00 Intermediate Capital . . . . . . . . . .293.00 –0.90 308.30 233.50 Rightmove . . . . . . . . . . . . . . . . .742.00 +5.50 796.50 456.90 Wolseley . . . . . . . . . . . . . . . . . .1530.00 +41.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .340.30* +0.50 394.60 303.20 Intertek . . . . . . . . . . . . . . . . . . .1827.00 –1.00 1863.00 1136.00 Rio Tinto . . . . . . . . . . . . . . . . . .3695.50 +42.50 4104.00 2435.00 Wood Group (John). . . . . . . . . . .425.80* +4.90 427.20 279.60
Centamin Egypt . . . . . . . . . . . . .183.80 –1.50 194.40 92.00 Intl Personal Fin . . . . . . . . . . . . .265.50* +4.90 283.00 137.00 RIT Capital Partners . . . . . . . . . 1133.00 +14.00 1215.00 940.00 WPP . . . . . . . . . . . . . . . . . . . . . .722.50 +15.00 744.00 520.50
Centrica . . . . . . . . . . . . . . . . . . .333.30 +0.40 347.00 236.30 Intl Power . . . . . . . . . . . . . . . . . .387.80 +0.40 396.80 248.20 Rolls Royce . . . . . . . . . . . . . . . .590.50 +15.50 631.50 434.50 Xstrata . . . . . . . . . . . . . . . . . . .1234.50* +25.50 1344.50 815.00
Charter Intl . . . . . . . . . . . . . . . . .661.00 +3.50 855.50 563.50 Invensys . . . . . . . . . . . . . . . . . . .293.70 +10.20 350.30 224.90 Rotork . . . . . . . . . . . . . . . . . . .1654.00* –3.00 1712.00 1088.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2994.00 +33.00 3711.00 2363.00 Investec . . . . . . . . . . . . . . . . . . .502.50 +7.90 565.00 411.50 Royal Bank Of Scot . . . . . . . . . . . .49.29 +1.33 58.95 28.25
Close Bros . . . . . . . . . . . . . . . . .722.00 +6.00 806.50 657.00 ITV . . . . . . . . . . . . . . . . . . . . . . . .58.95 +2.25 71.75 41.04 Royal Dutch Shell A . . . . . . . . .1907.00 +13.50 2068.50 1621.00 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .234.00 +2.10 278.60 205.50 Jardine Lloyd Thompson. . . . . . .577.00* –6.00 604.50 420.70 Royal Dutch Shell B . . . . . . . . .1845.00 +9.00 1997.50 1550.00
COLT Group . . . . . . . . . . . . . . . .123.80 +6.20 144.20 107.70 Johnson Matthey . . . . . . . . . . .1763.00 +19.00 1814.00 1302.00 RSA Insurance . . . . . . . . . . . . . .130.50* +0.60 142.00 114.10 www.interactivedata.com

Opening gains likely as winning streak continues

GFT is quoting the FTSE 100 index markets’ nerves, particularly from measure of inflation, the core person-
MARTIN ON to open up 10 points from Friday’s
close, at a level of 5,608. The German
the US from where we will see the lat-
est updates on housing, confidence
al consumption expenditure price
index, due out Friday.

THEMARKETS DAX 40 is expected to open up 12

points at 6,310, and the French CAC
40 index is forecast to open up 8
and manufacturing activity, and the
spotlight event is the Fed’s preferred
Martin Slaney, Director, Global Dealing
Operations, GFT

points at 3,790. ANALYSIS l FTSE ANALYSIS l DAX

With markets in the US on a simi- 6,298.30
lar track of gains – the S&P 500 index 5,800 5,598.48 6,400 24 Sep
on track for its best month in a 24 Sep
decade, and the Dow Jones posting a 5,600
near 200-point gain to end the week,
the bullish momentum shows little 6,200
sign of ending. As markets continu-
ously shrug off more and more bad
5,200
news – everything from the prospect
MARTIN SLANEY of the US Federal Reserve moving clos-
er to a second round of monetary eas-
6,000

ing to alarmist talk on the Irish

A
NOTHER positive open is economy – the more genuine the 4,800 5,800
expected for UK shares this rally becomes. A plethora of high-pro-
morning, following on from a file fundamental economic data are
fifth straight week of gains. released this week to really test the 28 Jun 16 Jul 5 Aug 25 Aug 14 Sep 28 Jun 16 Jul 5 Aug 25 Aug 14 Sep

WALL STREET WEEK AHEAD

U
S stock investors will head into the fourth week in a row, boosting and the best September for stocks known as the Chicago Purchasing expected to have caused a slowdown
this week wondering if investors’ confidence that the since 1939. Managers Index. A Commerce in manufacturing activity in
September will end as strongly upward move will continue. “Sentiment has turned sharply Department report on personal September. The Institute for Supply
as it began for the market, with The Standard & Poor’s 500 index is higher over the past few weeks after income and spending is also due out. Management’s manufacturing index
manufacturing and personal income up 9.5 per cent since the end of very bearish readings last month,” The last ISM manufacturing report probably dropped to 54.5 in
data among the top indicators on tap. August. Last week, its move above the said Michael Sheldon, chief market “helped propel the markets higher,” September from 56.3 in August. A
The data will be watched for fur- 1,130 level on Monday represented a strategist at RDM Financial, in Sheldon said, recalling the S&P 500’s reading above 50 indicates expansion.
ther clues on whether the economic technical breakout that analysts said Westport, Connecticut. gain of 3 per cent on 1 September, so The week’s data is also expected to
recovery is still on track and to see if suggested further gains were likely. This week’s data includes two man- “any disappointment could be a set- show moderate gains in personal
the market’s recent rally has support. If the rally holds, it will make ufacturing reports -- one from the back” for stocks. income and consumer spending in
Friday’s advance left the three September the best month for the Institute for Supply Management and Tepid demand amid a US unem- August, consistent with views the
major US stock indexes with gains for S&P 500 since at least March 2000, another from the ISM-Chicago, better ployment rate of 9.6 per cent is economy is slowing growing.
CITYA.M. 27 SEPTEMBER 2010
As Eurozone
banks tighten
purse strings,
Euribor rises
A re-emergence of the sovereign crisis could
slow interbank lending, writes Juliet Samuel
W
ITH the spread between Irish
and German bond yields even
wider than it was during May,
speculation is rife that the
Eurozone crisis is about to re-emerge with a
vengeance. A run of terrible data has not
helped matters: on Friday, Irish GDP was
revealed to have shrunk 1.2 per cent in the
second quarter of 2010 and European
industrial orders figures disappointed.
If the crisis does flare up again, how
should traders get exposure? Spread-betters
could short the Eurostoxx 50 – or the euro.
But because forex markets are all relative, a
weak euro depends on Europe’s major trad-
ing partners faring better than Europe,
which is by no means guaranteed. Another
less commonly considered method is to bet
on Euribor, the European interbank offered
rate, which is the average rate at which the
major Eurozone banks lend to one another.
Brokers offer spreads on Euribor priced
out of 100. This is because short-term bank
loans are priced by subtracting the interest
rate from 100: instead of lending £100 and
receiving capital plus interest back, one
lends £100 minus the interest rate and
receives £100 back.
Euribor has been on the rise in recent
months, reaching 0.88 per cent for three-
month loans and 1.42 per cent for 12-
month loans last week. This compares to
0.71 per cent and 1.27 per cent in June.
Looking at the chart (right), traders will
notice that the rate only went up gradually
as the Eurozone crisis flared up in May.
This reflects that although the markets
were concerned about the possibility of sov-
ereign defaults, this took time to feed
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Investment | Spread Betting 23
through into an increase in the rate at
which banks lent to one another, in part
thanks to ongoing liquidity programmes
by the European Central Bank (ECB).
But it also speaks to the way Euribor is
calculated. The rate quoted is based on the
average rate at which a panel of 57 major
European banks lend to one another – but
it is only calculated after the top and bot-
tom 15 per cent have been discounted. So
even if smaller or less capitalised banks
were struggling, the mainstream banks
were able to redirect lending to one anoth-
er and, with interest rates low, keep Euribor
from rising steeply. betting on the interbank rate should keep a Borrowing is which banks are saving despite low interest
But now, analysts at RBS are anticipating sharp eye on the changing framework of getting dearer rates. And if banks are beginning to put the
slowing growth to trigger what they call a financial rules in Europe. brakes on lending to one another, it means
“death debt spiral”: that is, states having to The steady rise of Euribor signals that the Picture: GETTY that beyond sovereign debt concerns, con-
pay higher spreads on gilts as their growth coming Eurozone crisis is a new progres- sumers and financial institutions are going
slows. The rise in Euribor reflects that sion from the turmoil seen in May, in to feel the pinch.
banks have been building up their balance
sheets in order to weather such a storm –
and in order to prepare for the end of the
ANALYSIS l 2010 European interbank offered rate on one-week, three-month and six-month loans
ECB’s special liquidity programmes in Rate %
January. Moreover, RBS analysts write: “We
continue to keep a close eye on the usage of 1.2
6m
the (ECB’s) lending facility, which can sig-
1
nal the potential for banks with funding
trouble.” A steadily rising Euribor could
0.8 3m
prompt more banks to turn to the ECB for
help, in turn deflating the interbank rate
as excess liquidity enters the system. 0.6
Another factor to watch is the change in 1w
capital ratio requirements under Basel III. 0.4
Although this was not as stringent as
expected, the real change in the require- 0.2
Source: European Banking Federation
ments will not actually be known until
November, when it becomes clear which
assets the new rules will affect. So traders 4 Jan 15 Feb 29 Mar 10 May 21 Jun 2 Aug 13 Sep
Get started at
gftuk.com.
 24 Investment | Spread Betting
Is your broker trading against you?
BRENDAN CALLAN
MANAGING DIRECTOR, FXCM
F
OREX TRADING in the UK has
become extremely popular with
increasing demand for improved
trading platforms and trading servic-
es. Many people trade FX via their spread
betting or CFD provider. However as retail
traders become increasingly sophisticated
will the classic spread betting offering be
enough for the man on the street?
No Dealing Desk is a new type of execu-
tion technology which is now threatening
to change the role of the typical spread
betting and CFD houses from glorified
bookies into high-tech trading firms offer-
ing access to the inter-bank forex markets.
SO, HOW DO TRADITIONAL SPREAD
BETTING FIRMS MAKE MONEY?
Spread betting firms may act as a market
maker and run a trading book against
their clients, regardless of whether you
are trading a spread bet, CFD or an FX con-
tract. This means that when you open an
FX position with them they can take the
opposite side of your trade and your posi-
tion will not be traded in the market. If
your position makes money, the broker
will be out of pocket, if you lose money
your broker will make a profit of the same
amount as your loss.
Alternatively, if you are a successful
trader and make money on a regular basis
the broker may manually hedge all of
your orders in the market which means
you must wait for a dealer to process and
accept your order before your trade is con-
firmed. If the market moves in between
the time it has taken the dealer to receive
and process your order you may also
receive a re-quote.
Example 1. Your broker is running a
trading book against you: You go long of
EUR/USD and the firm takes the opposite
side of your position rather than hedging
it. If on closing the trade you are up
£1,000, your broker will have lost the same
amount of money. Do this too many times
and your broker will start to manually
hedge every single order you do which
could mean re-quotes, execution delays
and wider spreads.
Example 2. Your broker’s dealing desk is
manually hedging your positions: Your
broker decides to manually hedge your
orders in the market which means that
every time you place a trade a dealer must
accept the order or will provide you with a
re-quote. You go long of EUR/USD with the
view to making 100pts on the trade. On
accepting your order, the dealer can wait a
period of time before hedging your order
in the hope of being able to hedge at a
lower price. Generally, customers who
have prices move in their favour quickly
ADVERTISEMENT FEATURE
after getting filled are unprofitable for the
average spread betting firm and dealers
may use re-quotes, execution delays or
widened spreads to discourage such cus-
tomers.
HOW DO BROKERS WHO USE NO DEALING
DESK MAKE MONEY?
No Dealing Desk technology (or NDD for
short) gives you access to trade with many
of the worlds largest liquidity providers
which all compete for your business.
Instead of trading against their clients,
brokers who use NDD are actually provid-
ing their clients with rates taken from a
multitude of different banks and instead
make money in the form of the dealing
spread. The NDD technology automatical-
ly finds the best bid and best offer rates
and streams them through to your plat-
form so that when you are placing a trade,
you are dealing on some of the most com-
petitive FX rates.
Spread betting and CFD firms who
invest in NDD technology no longer need
to hope to bring on clients who are unsuc-
cessful traders. In fact, NDD enabled bro-
kerages rely on trading volumes, so they
want and need their clients to be success-
ful overall.
MY BROKER CLAIMS TO OFFER NO DEALING
DESK, HOW CAN I TELL IF THIS IS TRUE?
A broker who offers No Dealing Desk will
not give re-quotes or restrict certain trad-
ing strategies. The role of an NDD broker
is purely as a middle man to your deals. In
return, NDD brokers make a transactional
based commission. There is no incentive
for them to restrict your trading in any
way.
WHY DOES MY CURRENT BROKER GIVE ME
RE-QUOTES?
Most spread betting firms have staff work-
ing on dealing desks that monitor all
orders that are made via their trading
platform. Their job is to process your order
internally and regardless of whether they
are running a position against you or
manually hedging your trade, delays can
often be experienced especially during
periods of market volatility or during
important market news events. No
Dealing Desk allows brokers to process all
orders automatically from the point the
customer places the trade on their plat-
form all the way through to the trade
WHAT ARE THE BENEFITS OF
NO DEALING DESK?
In general, NDD gives traders the following
benefits over the traditional execution meth-
ods the spread betting and CFD firms use:
•trader
No conflicts of interest between broker and
• Usually there are no trade re-quotes
•thePlace limit and stop orders within 1 pip of
market price
• No dealer intervention
• No restrictions on your trading style
• No maximum deal size
• Anonymous trade execution
Picture: GETTY being executed with the bank. NDD has
removed the need for any manual interac-
tion which means quicker execution and
importantly no conflict of interest
between the broker and client.
WHY DOES IT SEEM TO TAKE LONGER FOR
LIMIT/STOP-LOSS ORDERS TO BE FILLED
WHEN I AM TRYING TO EXIT A WINNING
POSITION?
When brokerage companies run a book
against their clients, their dealers are
watching all of the pending orders that
clients have waiting to be executed at a
specific price. If a customer’s position is
moving close to their stop-loss, the dealing
desk will be ready to fill the order as soon
as it touches the stop-loss price. On the
same token, if a customer is making a
healthy profit and is near to a limit order,
the dealing desk lacks the incentive to fill
the order as quickly because it represents
a corresponding loss to the dealing desk’s
daily profits. No Dealing Desk removes
this conflict of interest; instead stop loss
and limit orders are executed at the best
bid/offer price made available by the bro-
ker’s liquidity providers.
WHY DOES MY CURRENT BROKER RESTRICT
ME FROM CERTAIN TRADING STRATEGIES?
Experience suggests that firms who do
not have NDD technology tend to prefer
customers who use range trading strate-
gies where the client is buying into falling
markets and selling into rising markets.
The reason that they like this type of
client is because typically the time
between their orders will be hours or even
days giving the dealing desk enough time
to process each order. Dealing desks can
struggle with more aggressive trading
strategies where clients are trading very
tight ranges in order to make just a couple
of pips on each trade. Such strategies are
often referred to as Scalping. Dealing desk
spread betting firms could ask you to stop
trading in this way, particularly if you are
making a profit as a result.
No Dealing Desk enables the broker to
CITYA.M. 27 SEPTEMBER 2010
accept all types of trading, including
scalping. This means that as their clients’
trading strategies change, they can still
accommodate their needs.
WHY DOES MY SPREAD BETTING PROVIDER
INSIST ON STOP-LOSS/LIMIT ORDERS
BEING A MINIMUM DISTANCE FROM THE
MARKET PRICE?
Most firms do not permit you to place
pending orders too close to the market
price; usually they restrict you from doing
so by up to 10 points. This is done because
dealing desk spread betting firms need
enough time to process your order. If you
place an order with a stop-loss or limit
order only a couple of points away from
the market rate it will not give their deal-
ers sufficient time to hedge your opening
order and then trade out of it once the
pending order is inevitably hit.
NDD does not restrict where you place
your pending orders, in fact you can even
place them within the spread.
WHEN I LOOK AT THE CHART IT HAS TRAD-
ED THROUGH MY STOP-LOSS/LIMIT ORDER,
WHY DOES THIS HAPPEN?
Trading during volatile and quick moving
markets can make trading conditions dif-
ficult, particularly when trading during
news events. When a currency takes a sud-
den move, often it will be accompanied by
reduced liquidity in the market making it
harder to fill your order. A traditional
dealing desk broker could use this as an
excuse to manipulate the price that your
order is filled at, where an NDD broker
will fill your order at the best available
price at all times. Either way, reduced liq-
uidity can cause disadvantages to both
forms of execution, the only difference is
that you will be treated impartially by an
NDD broker.
Forex, CFDs and Spread Bets are leveraged prod-
ucts that carry a high degree of risk to your cap-
ital and may not be suitable for all investors.
Therefore, you should only speculate with money
that you can afford to lose.
CITYA.M. 27 SEPTEMBER 2010
A tarnished outlook for base metals
Forget the likes of copper, find
safety and profit in its precious
cousins, writes Donata Huggins
U
BS SHOCKED short-term traders on
Friday when it issued a report call-
ing time on copper’s upside. Spread
betters should take note of the con-
ditions facing industrial metals and consid-
er switching to precious ones. UBS’s
research says that the global environment
in the fourth quarter will not sustain the
big mining companies’ Antofagasta and
Kazakhmys’ current share price. The spread
better should pay attention because the
fate of these mining companies is correlat-
ed with the copper price (see chart below).
This could be a sign of things to come for
other industrial metals since the economic
conditions the research warns against are
equally applicable – slowing factory orders
in the West and lower demand in the East.
But RBS says the opposite, believing that
there will actually be a supply deficit due to
Chinese demand this winter. Spreadex’s
Phil Gillett says that traders should walk
away from the market if there are opposing
signals and look elsewhere.
Precious metals seem to be the obvious
choice. Gold is at a record high having hit
the $1,300 mark for the first time on Friday
while silver has hit a 30-year-high. The
prospect of further quantitative easing is
still on the cards and precious metals are
likely to continue to act as a safe haven for
as long as this continues. CMC Markets’
Michael Hewson says: “Watching out for
indicators of improvement in precious met-
als prices is really a matter of watching out
for the weakening of the dollar. For as long
as that happens, they will strengthen.”
But there is speculation on whether gold
or silver will be the better performer.
Hewson believes silver will emerge from
gold’s shadow. He thinks that the gold bub-
ble could burst and could cause punters to
flock to silver. There is a problem for long-
term silver bulls though. There are silver
mines lying dormant in Latin America.
They were closed years ago when the price
of silver collapsed. If silver continues sky-
ward the owners could be tempted into re-
opening them to meet demand. This would
boost supply and prices are likely to fall.
Interested traders should get in and get out
quickly in case this occurs.
Platinum and palladium, however, are
worth some consideration. Platinum is up
7.8 per cent this month while palladium
TECHNICAL
ANALYSIS
GURU
SANDY
JADEJA
CHIEF TECHNICAL
ANALYST
sandy.jadeja@cityindex.co.uk
Q.
Dear Sandy, the FTSE 100 seems
to be struggling. Will the index fall
this week?
A.
Over the past two weeks the FTSE
100 has struggled to break above
the resistance level of 5,610. This is
suggesting that the index may be weak.
When we see a market reach a certain price
level and then hesitate – this is often
referred to as consolidation – then one of
three events can occur. First, the market
may continue to consolidate at or around
that price level. Second, it may carry on in
the direction it was moving prior to the con-
Copper’s rally could
run out of steam
Picture: ALAMY
has climbed 10.4 per cent. With plenty of
potential for them to return to their April
highs these could offer safe, easy climbs.
Savvy traders should steer clear of the
murky picture presented by industrial met-
als and instead follow the momentum of
precious metals.
ANALYSIS l Copper's price correlation
to Antofagasta
12
Source: Thomas DataStream, UBS estimates
10 y = 0.0311x - 0.5552
Antofagasta share price (£ps)
2
R = 0.9515
8 still yields the biggest dividends of any
6 tomorrow might help to drive the shares
4 Last Monday, this column recommended
2 since then its shares have plunged 8 per
50 100 150
solidation. Or third, the price movement can
reverse.
The FTSE 100 had been rallying prior to
the consolidation so, technically speaking, the
index may be pausing for breath before it
continues higher to the next price target at
5,700.
So this week we have to watch out for
the recent high of 5,635, which, if cleared,
would suggest higher prices. If we instead
see prices trade lower then a top may be in
and the bears are likely to take the market
lower.
Q.
Dear Sandy, what key points
should I look for if the market is to
fall?
A.
By looking at the FTSE 100 daily
chart (see right) we can see clearly
that we have a sideways trend at the
moment. Previously, when the index made a
high at 5,418 we had a similar pattern of
consolidation for 11 days and then a short-
term decline took the index lower.
Patterns often repeat themselves in the
market and we may see a repetition of a sim-
ilar event again. This is not a guarantee but
rather an observation.
Recently the FTSE found support at 5,530
and 5,508. If the index trades below this
price level this week then we can be more
Investment | Spread Betting 25
shorts until 162p where it might be worth
THE TIPSTER flipping your position and going long.
Spread Co offers 172.4p-173.7p.
BIG DIVIDENDS TO GIVE Like its rival, Ladbrokes’ share price also
retreated last week to the 50 and 100-day
MAN GROUP A BOOST moving averages at around 138p. The tech-
nical outlook is bearish since the 100-day
moving average has just crossed the 50-
day to the downside. Anybody looking to
buy should wait until the 125p-130p level.
H
EDGE fund manager Man Group’s Spread Co offers 137.6p-138.3p.
share price has been hovering just Mining stocks lacked support in early
above the £2 mark for some time but it trade on Friday after a broker downgrade
but investors seem committed to safer-
stock in the FTSE 100. Its trading update haven plays such as precious metals. While
this prevails, the sector has the potential to
higher. Capital Spreads offers 220.7p-221.3p. find support. But with data focused on US
and UK GDP readings this week, the risk of
selling bookmaker William Hill at 187p – another flight to quality cannot be stressed
enough. The current IG Index price on New
Copper price (USc/lb) cent, crashing through the 50 and 100-day York-listed Barrick Gold is $46.35-$46.44.
moving averages to 172p. Hold on to your Jessica Mead
200 250 300 350
ANALYSIS l Daily chart of the FTSE 100 and the relative strength index below
FTSE 100 (daily) Resistance: 5,610 - 5,706
5,600
5,418
5,400
5,200
5,080
5,000
4,800 Support: 5,530 - 5,340
60
50
40
Source: Equis Metastock
The FTSE 100 is in a bearish for the immediate term. On this basis safe haven during bearish market moves.
sideways trend we would expect lower prices and would This would certainly help lift the price of
therefore short the market. gold higher.
But there are also speculators who like to
Q.
Dear Sandy, does a falling FTSE ride current trends. At the moment, the
100 mean that the price of gold trend for gold is bullish and therefore this
will rally? may also help to lift gold higher.
Until we see prices decline sharply fol-
A.
Sometimes we can find inverse rela- lowed by lower highs and lower lows, the
tionships existing between certain view is that gold could well stretch beyond
markets. For example, if the FTSE the all important $1,300 level.
100 declines then some investors may look Learn more about technical analysis with
towards gold, which provides them with a Sandy at his free City Index seminars.
 Lifestyle
26 CITYA.M. 27 SEPTEMBER 2010

| Travel

Off-piste: the
pre-snow joys
of Chamonix
There is a lot more than skiing to do in the
beautiful French region, says David Crow

A
SK MOST people what comes into
their head when you mention
Chamonix, and they’ll say skiing.
But the mountain capital of the
world has much more to offer, especially
when the snow disappears from every-
where but the highest peaks. Home to
over eighty nationalities – making it one
of the most multicultural places in
France – this cosmopolitan town has a
quirky, inimitable offering: a thriving
music and arts scene, breathtaking
scenery, mountaineering – and some
truly unique experiences. Here CityA.M.
picks ten of the best things to do when
there’s no piste.
1. MOUNTAINEERING
Nestled in an Alpine valley, Chamonix is all about the mountains. Whether it’s mountain biking, hiking or rock-climb-
ing, there’s something for everyone from the most seasoned mountaineer to the curious beginner. A good place to
start is a hike to Blaitière: in the summer, the snow melts away to reveal a stunning terrain of thick forests, quiet
streams and vast open spaces, filled with the smell of wild flowers and herbs. Regardless of your ability, be sure to
book an expert mountain guide if you’re venturing into unknown territory.
• Guides available from €22 a day from Evolution 2, a team of 80 English-speaking mountain professionals.
www.evolution2-chamonix.com/evo_en_5.html

2. EAT LUNCH IN A
MOUNTAINSIDE PASTURE 3. PARAGLIDING
Few farmers are willing to work in the inhos- For a high-octane experience, take the cable car
pitable mountains these days, but Pascal Payot to the Brévent peak and book yourself a tan-
is different. In the summer months, he moves dem paragliding trip. After a few short steps,
his herd of 50 Saanen goats to a small Alpine you’ll begin your flight at an altitude of over
pasture, which boasts breathtaking views. 2,000 feet, giving you unrivalled views of the
Abandoned for decades, Payot returned to snowy peak of Mont Blanc. The qualified
revive the pasture and its original alpine hut; it instructor will then find thermal winds that
was a labour of love that took years, and it take the glider even higher, offering panoramic
shows. Stop off for a truly unique goats- vistas across the alps. After a 20 minute flight,
cheese tasting, before meeting the animals you’ll begin your descent, taking in birds-eye
that fed you. views on Chamonix. For the more adventurous,
• Payot offers tastings at the Alpine pasture some instructors will perform a series of elabo-
between June and September. Bookings can rate somersaults as part of a thrilling, if some-
be made by emailing him at what stomach-churning, landing.
lafermeapayot@hotmail.fr • Around €99 for a 20 minute flight. Available
or phoning +33 (0)6 87 41 71 57. from Les Ailes du Mont-Blanc www.lesailesdu-
Pictures: ROBERT HARDING, GETTY montblanc.com/english.

5. GLACIER WALKING
To reach the Mer De Glace or “Sea of Ice” – France’s longest glacier – you
have to climb down a series of entirely vertical steel ladders. The 100m
descent is a terrifying experience, but the nail-biting effort is worth it. Once
you’re there, armed with ice axes and crampons, you can set off along the
7km glacier, following in the footsteps of fearless nineteenth century explor-
ers. Mary Shelley, who traversed the ice with husband Percy and their friend
Lord Byron, famously used the setting for a scene in Frankenstein, when
maker first meets monster. It’s not hard to see why; eerie yet beautiful, it is
impossible to trudge along the 200m-deep glacier without contemplating
man’s relationship with nature. There’s also much fun to be had in climbing
ice walls, an activity that requires brains and brawn, as you hack strategic
holes in the ice before using the axes to pull yourself up.
• Equipment available from Coquoz, telephone +33 (0)4 50 53 15 12.

4. VISIT THE AIGUILLE DU MIDI

At an altitude of 3,800m, the Aiguille du Midi offers 360 degree panoramas of the
French and Swiss alps. When you’ve caught your breath (the high altitude can leave
you distinctly short of it), drink in the views: an expedition of hikers setting off on a
voyage across the brilliant white snow; the peaks and troughs of the valley; and the
white cone at the peak of Mont Blanc. Transport is by a similarly beautiful cable car
ride from the centre of Chamonix.
In the summer, The Mont-Blanc Multipass (available at
www.chamonix.com/lifts,20,en.html) is the best option for using the cable cars, as well
as all the other lifts. A three-day Mont-Blanc Multipass costs 70€.
CITYA.M. 27 SEPTEMBER 2010 MINI’S NEW SCOOTER 27
WE MEET THE DESIGNER,
IN TOMORROW’S
LIFESTYLE SECTION

6. STAY IN A HISTORICAL HOTEL

Built in 1880 to accommodate the growing number of mountaineers and travellers who
7.AN EVENING IN AN ART
GALLERY
wanted to see the Mer de Glace, the Hotel du Montenvers has barely changed. Its rooms Chamonix has a thriving creative communi-
and dormitories are panelled in dark wood and fitted with replica 19th Century sinks, while ty, teeming with writers, photographers,
its 1913m vantage point offers the same stunning view of the glacier. Guests can stay in musicians and painters. The movers-and-
the hotel by attending one of its weekly retro parties in the summer months, when staff shakers can be found at the Globe Art
try to recreate the experience that a traveller would have had in the late 1800s, with tradi- Gallery in Argentière, which hosts a weekly
tional food, drink and entertainment. Much of the hotel’s historical charm comes from the rendezvous under the banner “Art for Art’s
fact that no roads or cable cars lead to it, meaning access is only via a delightful little cog sake”. Grab a flute of champagne and view
train. the constantly-changing exhibitions (much
• The cost of the retro party is €70, including train journey, aperitifs, a three-course meal of the work is inspired by the surrounding
and wine. Guests can stay on a bed-and-breakfast basis for €42 in a twin room or €26 in a scenery), while chatting to other guests and
dormitory. Visit www.compagniedumontblanc.fr/pages/grand_hotel_montenvers_gb.html tuning into the jazz music.
for more information. • For more information visit
www.galerieduglobe.com//Index.php?lang=
en&mp=.

8. A JAZZ FESTIVAL, MOUNTAIN STYLE

Organised by Chamonix resident André Manoukian (France’s
answer to Simon Cowell and front man for X-Factor-style show
Nouvelle Star), the Cosmo Jazz festival is a music event with a
twist. World-class musicians come and do their thing, but also
have to engage with the setting: this year a jazz saxophonist
played a gig in an ice cave while, a cellist performed a candle-lit
concert deep in the forest and a Nepalese percussion outfit
climbed for two hours with their audience before performing. Next
year promises to be just as exciting.
• Dates for next year’s festival have not yet been set, but will prob-
ably be in the final week of July. Visit www.cosmojazzfestival.com
for updates.

9. EAT LOCALLY-SOURCED FOOD

Café de l’Arvre is a new venture from Michelin Star chefs Julien
Binet and Mickey Bourdillat. The constantly-changing menu focus-
es on unfussy, simple cooking, using only locally-sourced ingredi-
ents. When we visited the offering included fish from a Genevan
lake and pumpkin ravioli cooked in spring water, washed down by
alpine wine. Restaurant owners Joel Didillon and Jacques
Gendrault have an infectious enthusiasm, and are only too keen to
sit and chat through the provenance of the food before you order.
• For more information visit www.cafedelarve.com/en.

10. VISIT THE MARKET

French markets are legendary, and while the traders in Chamonix
town square might not be as numerous as the ones at the famous
Rue Cler market in Paris, they certainly hold their own. Local farm-
ers sell everything from goats cheese and saucisson to delicious
buerre blanc biscuits. The 1930s vintage skiing posters, designed
by Henry Reb, are also incredibly stylish.

GETTING THERE
Chamonix is located 88km from Geneva Airport. David flew with
Swiss International Airlines, which flies six times a day from
London Heathrow to Geneva and offers free ski and snowboard
transport (in addition to standard free baggage allowance). Visit
www.swiss.com to book. Airport transfers are available from
Mountain Drop Offs (www.mountaindropoffs.com) and cost
around €50 per person.

TRAVEL NOTES
ZOE STRIMPEL

Ambeo Jets’ new Park Lane check-in
Europe’s number one private jet company just became even sleeker with
the opening of a check-in lounge at supercar dealership Excalibur on Park
Lane. Passengers will be able to check in and drop off luggage – oh, and
have a glass of Pommery – before being whisked to the airport and plane
of their choice in a chauffeur-driven car. www.flyambeo.co.uk
Four Seasons to open in Vail, Colorado
In addition to the opulence and teched-up comfort of the rooms, guests
will have the benefit of a Ski Concierge and a top-level ski and boot fitter
based in the lobby. The bar and lounge are set to become an après-ski
hotspot with a menu of luscious drinks and sushi. Bookings open for
rooms after 11 Dec: +001 (416) 445-5031, www.fourseasons.com/vail/.
Party like a Maharaja in Rajasthan
Fancy something totally different before winter kicks in? Try a trip to the
Rajasthani International Folk Festival in Jodhpur, with VIP access. The
festival’s 150 artists are set in the majestic Mehrangarh Fort high above
the Blue City. Mick Jagger is a fan. Four nights from £880 including
flights. To book, call 020 7978 0550, www.originalmusictravel.com.
 28 Lifestyle | TV& Games CITYA.M. 27 SEPTEMBER 2010

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK

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

QUICK CROSSWORD
    

SUDOKU KAKURO
14 17 7 5 30 29 10 
11 10 3
14 16  
45
Place the numbers from 1 to 9 in each empty cell so that each 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 7 18
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1 One stroke over 2 Egg cells (3)
  
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par in golf (5)
4 Accumulate (5)
8 Mr Bolan, lead singer with
3 Someone who
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5 With legs
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R E
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9 Uncle’s wife (6) apart (7)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters M 10 Snake (3)
11 Less than average tide (4)
6 Climbing plants
that produce
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
C T 13 Essence (4)
fragrant
flowers (9)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
D I 14 Cultivated (7)
15 Naked (4)
7 Pleasure (9)
8 Highest mountain
QUICK CROSSWORD 9 4 9 2 3 7 1 16 Withered (4)
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 S
Sport
29
OWEN TO THE RESCUE FOR
MANCHESTER UNITED
BUT TITLE HOPEFULS MISS CHANCE
TO CLOSE GAP AT BOLTON: PAGE 31

WINNERS &
LOSERS
A WEEKEND is a long time in sport –
as this lot will attest. But while for
some it was one to remember, others
may wish they had never set foot out
of the house. Here are this weekend’s
heroes and villains.

AVRAM GRANT
Grant’s job is looking
safer by the match
after he put a disas-
trous start to his
tenure behind him. A
midweek cup win at
Sunderland; now victo-
ry over Spurs. Fulham,
up next, beware.
WINNER
TOPSY OJO
Ojo scored a hat-trick
as London Irish ran
amok at Newcastle to
top the table. Good
timing with the
autumn internationals
looming, and made all
the sweeter by a loss
WINNER for Northampton.
Hamilton’s race ended when he collided with Webber while trying to pass the Australian (above left), leaving the Englishman (above right) frustrated. Pictures: ACTION IMAGES FRANKIE DETTORI
Fourteen years on from

Alonso profits as Hamilton

his epic seven-timer,
Dettori was the darling
of Ascot once again on
Saturday when he
claimed four winners,
including the Queen

loses ground in Singapore

Elizabeth II Stakes
WINNER aboard Poet’s Voice.

SIR CHRIS HOY

Olympic hero Hoy, with
one eye on November’s
Euro Championships,
Jenson Button took fourth. It all damage to his car was enough to end unlucky to come away like he did. was forced to pull out
FORMULA 1 means Hamilton is now 20 points his race. “I saw Mark made a mistake Mark was lucky to get away with it.” of the keirin at the
2010 behind championship leader Webber
with just four races remaining, while
and got caught by a back marker so I
knew I could slipstream him into RESULT | SINGAPORE GP
semi-final stage of the
British National Track
BY FRANK DALLERES Alonso’s victory has lifted him above turn seven and I thought I was Championships after
BRITAIN’S Lewis Hamilton admits his the Englishman. enough past him,” Hamilton said.
1. F Alonso (Ferrari) 1:57:53:579 contracting a virus.
hopes of claiming a second drivers’ “Twenty points is massive, and “After that I’m not really sure what 2. S Vettel (Red Bull) 1:57:53:872 LOSER
title are slipping away after he lost with four races to go that is a big happened. He was in my blind spot, I 3. M Webber (Red Bull) 1:58:22:720 ROY HODGSON
further ground at the Singapore gap,” he said. “I have to get my head didn’t see him alongside me, next 4. J Button (McLaren) 1:58:23:965 Hodgson had to bat
Grand Prix. down and hope for something. But thing I know is my tyre’s blown and 5. N Rosberg (Mercedes) 1:58:42.973 away questions about
Ferrari’s Fernando Alonso took the the points gap is just a race victory that’s it.” fan unrest at Liverpool’s
chequered flag at the night race after away. It’s not insurmountable.” Hamilton refused to blame Webber STANDINGS | CHAMPIONSHIP financial woes after
Hamilton had to retire following a Hamilton’s exit came when his and for the clash, which stewards investi- being held at home by
collision with Red Bull’s Mark Webber’s cars came together at a cor- gated but declined to act on, but 1. M Webber (Red Bull) 202 Sunderland. Not the
Webber on lap 36. ner after the 2008 champion had got McLaren principal Martin 2. F Alonso (Red Bull) 191 ideal pick-me-up after a
Alonso pipped Sebastian Vettel by his nose in front on the previous Whitmarsh made it clear he held the 3. L Hamilton (McLaren) 182 week in which he was
just 0.3 seconds while his colleague straight. Australian responsible. “We are not 4. S Vettel (Red Bull) 181 beaten in the Carling
Webber finished third
Hamilton’s McLaren team-mate
and The contact sent the McLaren driv-
er momentarily off-course but the
here to attack Mark Webber,”
Whitmarsh said. “But Lewis was
5. J Button (McLaren) 177 LOSER Cup by Northampton.

SPORT | IN BRIEF
Games chiefs ‘warned of Harrington rediscovering
concerns’ six months ago form ahead of Ryder Cup
Gazza returns to management
FOOTBALL: Troubled former England
star Paul Gascoigne has been appointed
manager of non-league Garforth Town.
Gascoigne, who has battled drink and
drug problems, lasted just 39 days in his
last managerial role at Kettering five rooms appearing in the Indian media Harrington, who finished joint
▲

COMMONWEALTH GAMES GOLF

years ago.
But the 43-year-old said: “I feel
strong right now. For me personally it’s a
big challenge. It’s whether the players
want to join me in that challenge.”
Robertson beats Ronnie in final
SNOOKER: World champion Neil
Robertson ruthlessly swept Ronnie
O’Sullivan aside 5-1 to claim the World
Open in Glasgow.
The Australian punished O’Sullivan’s
errors to win a sixth ranking title and
underline his status as world No1.
O’Sullivan said: “He’s world champion
and world No1, and he dispatched me
like world champions and No1s do.”
MIKE HOOPER, the Commonwealth
Games Federation chief executive,
has revealed he raised concerns over
the athletes’ village six months ago.
Organisers are still working on the
much-criticised Games accommoda-
tion as competitors from around the
world arrive in Delhi for the event,
which starts on Sunday. Members of
Team England’s support staff spent
last night in the village to prepare the
ground for the first batch of 48 ath-
letes to join them today.
But the row over the cleanliness
and quality of the facilities rumbles
on, with new photographs of dirty
yesterday. Hooper insists he has been
pressurising organisers to speed up
the work since early in the year.
“When we viewed [the village] in
March it was clear it was a massive
work in progress and a lot of work
had to be done,” he said. “All the
warning signs were there. We were
pushing very hard, we kept pushing.
You can lead a horse to water; you
can’t make it drink. These people just
did not understand, or seem to accept
the magnitude of the problem.
“There were consistently missed
deadlines. The government agencies
have let everybody down over here as
regards meeting those deadlines.”
EUROPE’S Padraig Harrington
declared himself ready for the Ryder
Cup after banishing some of his put-
ting demons at the Vivendi Trophy.
Three-time major winner
Harrington, who needed a captain’s
pick to make the team, only just
made the cut after taking his recent
patchy form into the tournament.
But the Irishman bounced back yes-
terday by carding the best closing
round, a 64 that featured seven
birdies and an eagle.
“The week before a big event is all
about seeing where your game is at
and what needs working on,” said
eighth on 13-under-par.
“I struggled putting earlier in the
week and it was sharp today, so I
don’t have as much to work on. I am
excited to get there and ready to go.”
English rookie John Parry won in
Paris with a closing 70 that left him
17 under par and two strokes ahead
of Sweden’s Johan Edfors.
Colin Montgomerie, meanwhile,
has not given up hope of playing in
the Ryder Cup again one day as he
prepares to captain Europe against
the United States this week.
“I’ve played for 20 years in the
Ryder Cup and it’s been a big part of
my life,” said Montgomerie.
 30 Sport CITYA.M. 27 SEPTEMBER 2010

Results
Nasri 75, 90
Att: 60,025
BARCLAYS PREMIER LEAGUE
Arsenal ..........................(0) 2 West Brom........................(0) 3
Odemwingie 50, Jara 52
Thomas 73
Great Britain
star Newton
Birmingham................(0) 0 Wigan...................................(0) 0
Att: 22,186
Blackpool .....................(0) 1 Blackburn...........................(1) 2
Phillips 85 Adam 20 (og)
Att: 15,901 Emerton 90
Fulham............................(0) 0 Everton................................(0) 0
Att: 25,598
Liverpool .......................(1) 2 Sunderland........................(1) 2

found dead
Kuyt 5 Bent 25 (pen), 48
Gerrard 64 Att: 43,626
Man City .......................(0) 1 Chelsea................................(0) 0
Tevez 59 Att: 47,203
West Ham .....................(1) 1 Tottenham.........................(0) 0
Piquionne 29 Att: 34,190
Bolton ..............................(1) 2 Man Utd...............................(1) 2
Knight 6, Petrov 67 Nani 23, Owen 74
Att: 23,926
Newcastle.....................(1) 1 Stoke.....................................(0) 2
winners’ medal with Leeds in 1999.
▲

Nolan 43 (pen) Jones 67 RUGBY LEAGUE

Att: 41,915 Perch 85 (og) He was also named in the 2003 Super
Wolverhampton ......(0) 1 Aston Villa .........................(1) 2 BY FRANK DALLERES
Jarvis 61 Downing 25
League dream team while at Wigan,
Att: 27,511 Heskey 88 FORMER Great Britain hooker Terry where he went on to score 74 tries in
P W D L F A GD Pts Newton was yesterday found dead at 185 games. After three seasons with
Chelsea 6 5 0 1 21 2 19 15 his home near Wigan after apparent- Bradford, Newton signed for
Man Utd 6 3 3 0 16 9 7 12
Arsenal 6 3 2 1 16 7 9 11 ly committing suicide. The 31-year-old Wakefield last year but played just
Man City 6 3 2 1 7 2 5 11 is thought to have been found twice before his deal was cancelled
Aston Villa 6 3 1 2 8 10 -2 10 hanged. following the positive doping test.
West Brom 6 3 1 2 8 11 -3 10
Fulham 6 1 5 0 7 6 1 8 Newton had been out of the sport In a statement Wakefield said they
Tottenham 6 2 2 2 6 5 1 8 since February when Wakefield ter- wanted to “pass on their heartfelt
Blackburn 6 2 2 2 7 7 0 8 minated his contract after he was condolences to Terry’s family”.
Newcastle 6 2 1 3 9 8 1 7 handed a two-year ban for using Wigan chairman Ian Lenegan
Sunderland 6 1 4 1 7 7 0 7
Bolton 6 1 4 1 9 10 -1 7 human growth hormone. He also added: “Everyone at the club is devas-
Birminghm 6 1 4 1 7 8 -1 7 played for Leeds, hometown club tated by the news. We would like to
Stoke 6 2 1 3 7 9 -2 7 Wigan and Bradford in a professional pass on our deepest condolences to
Blackpool 6 2 1 3 9 14 -5 7
Liverpool 6 1 3 2 6 9 -3 6 career that spanned almost 15 years. Terry’s family and friends at this TERRY NEWTON | CAREER
Wolves 6 1 2 3 7 10 -3 5 Rugby Football League chairman time. Terry will be remembered as a
Wigan 6 1 2 3 2 13 -11 5 Richard Lewis said: “We are deeply great player of this club and rugby Born Wigan, 7 November 1978
West Ham 6 1 1 4 4 13 -9 4
Everton 6 0 3 3 4 7 -3 3 shocked and saddened by the news of league in general and he was a larger Clubs Leeds (1996-9), Wigan (1999-2006),
NPOWER CHAMPIONSHIP
Terry’s untimely death. This is a per- than life character.” Bradford (2006-9), Wakefield (2010)
Burnley ..........................(0) 0 Bristol City........................(0) 0 sonal tragedy and our thoughts are A spokesperson for Greater Great Britain 15 caps after making his debut
Cardiff.............................(1) 2 Millwall................................(1) 1 with Terry’s partner, his children and Manchester Police said: “Inquiries
Coventry.......................(0) 1 Preston................................(2) 2 his family at this terrible time.” have been launched, but there are against New Zealand in 1998
Derby...............................(2) 5 Crystal Palace ................(0) 0
Leeds ...............................(0) 1 Sheff Utd............................(0) 0 Newton’s honours included 15 caps not believed to be any suspicious cir-
Norwich.........................(0) 0 Hull .........................................(0) 2 for Great Britain and a Challenge Cup cumstances surrounding his death.” Newton left Wakefield after failing a doping test. Picture: ACTION IMAGES
Nottm For......................(1) 3 Swansea.............................(0) 1
QPR ...................................(0) 3 Doncaster..........................(0) 0
Reading..........................(0) 3 Barnsley..............................(0) 0

Hougaard ends Saints’ unbeaten run

Scunthorpe..................(1) 1 Ipswich...............................(0) 1
Watford .........................(3) 3 Middlesbrough..............(0) 1
CLYDESDALE BANK PREMIER LEAGUE
Celtic................................(1) 2 Hibernian...........................(0) 1
Dundee Utd .................(0) 1 St Johnstne......................(0) 0
Hamilton........................(2) 2 Kilmarnock.......................(0) 2
Hearts.............................(0) 0 Motherwell ......................(0) 2
St Mirren......................(0) 1 Inverness CT....................(1) 2
Aberdeen......................(2) 2 Rangers................................(1) 3
Sarries overcame a sluggish opening and tried to roll away quickly. A pack who have destroyed everyone
GOLF
THE VIVENDI (Chambourcy, Paris)—FFinal rnd (Gbr & Irl
unless stated, par 72): 271 J Parry 70. 273 J Edfors (Swe)
SARACENS 24 spell by switching to a kicking game
at a sodden Vicarage Road.
penalty, yes, but hardly a yellow
card. These sin-binnings are very
ahead of them so far,” said Venter.
“We studied Dave Pearson’s games
71. 274 R Jan Derksen (Ned) 71, S Kjeldsen (Den) 70, M F Shane Geraghty responded with important. But you need to control so far and he does the same in every
Haastrup (Den) 72, F Delamontagne (Fra) 71, J Sandelin
(Swe) 71.
NORTHAMPTON 17 four penalties for the visitors while
Paul Diggin went over late on to
the ball to control the game and we
didn’t during the middle of the
game, fair penalty awards and
spread across the game. He is consis-
MOTOR RACING secure them a losing bonus point. game.” tent and very, very impressive.”
FIA FORMULA 1 SINGAPORE GRAND PRIX (61 Laps): 1 F But it was not enough to deny Saracens director of rugby
▲

RUGBY UNION
Alonso (Spa) Ferrari 1hr 57mins 53.579secs, 2 S Vettel (Ger)
Red Bull 1:57:53.872, 3 M Webber (Aus) Red Bull
1:58:22.720, 4 J Button (Gbr) McLaren 1:58:23.965.
BY JON COUCH
Saracens, and Saints director of
rugby Jim Mallinder blamed referee
Brendan Venter had nothing but
praise for Pearson, who got the
PREMIERSHIP
Ch’ship Standings: 1 Webber 202pts, 2 Alonso 191, 3 SARACENS fly-half Derick Hougaard Dave Pearson’s decision to sin-bin match underway almost five min- TEAM PLD W D L F A PTS
Hamilton 182, 4 Vettel 181, 5 Button 177. kicked 24 points to earn a hard- Geraghty and Calum Clark. “I do utes late because he was delayed by London Irish 4 3 0 1 115 64 15
fought victory over Northampton believe the two sin-binnings were traffic. Northampton 4 3 0 1 95 69 14
and end the Saints’ unbeaten start to harsh,” said Mallinder. “Calum Clark “We had trouble in the scrum at Bath 4 3 0 1 93 76 14
SPORTS EDITOR JON COUCH the season. Hougaard registered just went in to make a tackle and first, but the pack turned it for us
email sport@cityam.com seven penalties and a drop-goal as Shane Geraghty also made a tackle against a very strong Northampton Saracens 4 3 0 1 94 77 12

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CITYA.M. 27 SEPTEMBER 2010
Last-gasp saviour Heskey repays Houllier’s faith
WOLVES 1 while boss at Anfield, handed the
ASTON VILLA 2 against Wolves. And the 32-year-old
PREMIER LEAGUE
▲
ASTON VILLA manager Gerard
Houllier insists Emile Heskey is far
from finished after the veteran for-
ward earned victory in his first
league match in charge. Houllier,
United fight
back but let
chance slip
BOLTON WANDERERS 2 the far corner from Nani’s free-kick.
MANCHESTER UTD 2 Arsenal both succumb to unexpected
▲
PREMIER LEAGUE
BY FRANK DALLERES
IT WAS meant to be the win that
thrust them back on the heels of lead-
ers Chelsea, but in the end
Manchester United left Bolton with
only a draw, salvaged in the closing
stages by substitute Michael Owen.
To make matters worse for manag-
er Sir Alex Ferguson, United lost Ryan
Giggs to a hamstring injury while off-
form Wayne Rooney tweaked an
ankle problem, leaving him a doubt
for Wednesday’s Champions League
trip to Valencia.
Twice United came from behind to
level, first when Nani’s superb solo
run and low shot cancelled out the
prodded effort by Zat Knight that
gave Bolton a surprise lead. Then,
after Martin Petrov’s powerful strike
deflected in off Darren Fletcher,
Pulis labels Newcastle cheats
after Stoke snatch late glory
EU
NEWCASTLE UNITED 1 sparked the fightback and James
STOKE CITY 2 Yet, after a week in which his side
PREMIER LEAGUE
▲
STOKE manager Tony Pulis accused
an unnamed Newcastle player of
feigning injury after seeing his side
come from behind to subject the
Magpies to a second successive home
defeat.
Kevin Nolan’s penalty put
Newcastle in front after Robert Huth
fouled Andy Carroll just before half-
who signed Heskey for Liverpool
much-maligned former England
frontman his first start of the season
repaid his faith by mustering a prodi-
gious leap and powerful downward
header to snatch three points in the
88th minute.
Stewart Downing had touched
Villa in front in the Midlands derby
midway through the first half, but
Wolves equalised on the hour when
everyone missed a Matt Jarvis cross.
Owen glanced a looping header into
It was less than Ferguson had
hoped for, having seen Chelsea and
defeats on Saturday, but the Scot
chose to emphasise the positives of a
third successive away draw.
“In the first half we should have
done better but we did well to come
from behind,” said Ferguson. “The
second half was very even. Bolton
were a real handful and our chances
were reduced but we must take credit
for coming back again. It shows a bit
of character.”
Ferguson said Giggs would be side-
lined for “a couple of weeks” while
United assistant manager Mike
Phelan revealed Rooney’s injury
when asked why the forward had
been taken off. “He has a little issue
with his ankle. We don’t know how
serious,” said Phelan. “He has been
playing with it for a couple of weeks
now and during the game we decided
he wasn’t getting into the areas we
wanted and he wasn’t getting
chances, so we had to change it.”
Rooney, yet to score in open play
time, but a Kenwyne Jones header
Perch’s own goal ensured Stoke took
maximum points.
were accused of foul play following a
controversial Andy Wilkinson tackle
on Fulham’s Moussa Dembele, Pulis
was far from happy at the behaviour
of one Magpies player, who he
refused to pinpoint.
“With the bad publicity we have
had this week, I was really disappoint-
ed when one of the Newcastle players
went down and I think simulated an
injury from a challenge,” said Pulis.
“We have been highlighted with
one or two other clubs for supposedly
Heskey’s starting role was reward for
an influential substitute’s appear-
ance in the midweek comeback victo-
ry over Blackburn.
“All players need confidence.
Strikers need more confidence.
Everyone loves Emile at the club,
he is a good team-mate. What he
needs is to keep believing
in himself,” said Houllier,
right. “Because he plays
up front and sometimes
misses sitters, people
get on his back and
this season for United, again looked
far from his best, although he did
send a powerful shot narrowly over
Jussi Jaaskelainen’s crossbar in the
first half.
Bolton manager Owen Coyle
refused to blame forward Johan
Elmander, who missed a golden
being over-physical, and there are
other aspects to our game that need
to be addressed, and that is certainly,
for me, one of them.”
Newcastle manager Chris Hughton
said he would be “very, very sur-
prised” if one of his players had
feigned injury. He added: “We were
up against a hard-running, very phys-
ical side in Stoke who certainly put
themselves about. But I certainly did-
n’t see any play-acting from any of
our players.”
Hughton’s men, who knocked
Chelsea out of the Carling Cup in
midweek, have now lost back-to-back
fixtures at St James’ Park, following
the 2-0 defeat to Blackpool.
Sport | Football
maybe that has hurt him in the past.
But Emile fights for the ball in the air,
tries to keep it and links up with the
midfield. His work-rate was phe-
nomenal and his understanding
and movement with Ashley
Young is good.”
Heskey’s winner came
from a cross by Stephen
Warnock, another at
Anfield during
Houllier’s reign, and
the Frenchman
quipped: “It was
chance to put the home side 3-1
ahead moments before Owen’s 74th-
minute equaliser. “On another day
that ball would have rolled into the
top corner,” said Coyle. “I am certain-
ly not going to criticise a player who’s
given me everything and shown
unbelievable quality as well.”
Use profits on top keeper,
Graham urges Arsenal
▲
PREMIER LEAGUE
BY FRANK DALLERES
FORMER Arsenal manager George
Graham believes the club will never
win the Premier League until they
replace Manuel Almunia with an
exceptional goalkeeper.
The Gunners reported a record pre-
tax profit of £56m on Friday – as
exclusively revealed by City A.M. – but
boss Arsene Wenger has resisted the
temptation to spend big on a stopper.
That decision came back to haunt
him on Saturday when Almunia
errors contributed to a shock 3-2
home defeat to top-flight newcomers
West Brom.
Graham paid a then-British record
£1.3m for David Seaman in 1990 and
31
practically a Liverpool goal.”
Wolves manager Mick McCarthy
felt aggrieved at the late goal, argu-
ing that Warnock should have been
shown a second yellow card for an
earlier foul on Kevin Doyle.
“It is a great header by Heskey and
we shouldn’t take that away from
him,” said McCarthy. “We could have
done better when the ball comes in
but I don’t think Warnock should
have been on the pitch.
“If it is a foul, it is a booking. It just
rankles a bit. He shouldn’t be there.”
Owen headed the
equaliser in the
74th minute.
Picture:
ACTION IMAGES
PREMIER LEAGUE
TEAM PLD W D L F A PTS
Chelsea 6 5 0 1 21 2 15
Man Utd 6 3 3 0 16 9 12
Arsenal 6 3 2 1 16 7 11
Man City 6 3 2 1 7 2 11
the keeper let in just 18 goals as
Arsenal won the title, before becom-
ing an integral part of an infamously
mean Highbury defence.
“I think if you’re going to really be
realistic challengers for the Premier
League you need a top, top class goal-
keeper,” Graham said yesterday.
“I think Almunia is a good goal-
keeper, but there’s about half a dozen
good goalkeepers in the Premier
League.
“I think Arsenal need an outstand-
ing goalkeeper. I think they should be
looking all round the world, not just
in England or Europe.”
Wenger had a bid for Fulham’s
Mark Schwarzer rejected over the
summer but ultimately chose not to
up the offer or pursue other targets.
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