&
pm,
Issue 1,035 Friday 11 December 2009
BUDGET BLACK
HOLE SPOOKS
THE MARKETS
ECONOMICS
▲
BY JESSICA MEAD
CHANCELLOR Alistair Darling
included a series of hidden spending
cuts in his pre-Budget Report (PBR)
on Wednesday, which will see the
budgets of many government depart-
ments slashed by a total of £25.5bn
between 2011 and 2013, the Institute
for Fiscal Studies revealed yesterday.
The influential think-tank said
that departments such as transport,
defence and housing would see their
spending drastically reduced to pro-
tect expenditure on health and edu-
cation. The research also reveals an
extra £30bn unaccounted for in the
PBR, which will have to be met by
extra tax hikes and spending cuts.
By 2013-14, this squeeze on public
spending will reverse all of Labour’s
public spending increases since 2001
as a share of GDP. If the cuts continue
at the predicted rate, then all of
Labour’s spending rise since 1997
will have been unwound by 2017-18.
The full impact of the Treasury’s
proposals was unveiled as bond mar-
kets were spooked by the prospect of
decades of larger and larger govern-
ment deficits. The yield on the 10-
year government bond jumped to
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3.81 per cent yesterday as concerned
investors perceived an increased risk
to holding UK gilts. The cost of insur-
ing £10m of debt against a possible
default by the UK government in the
next five years rose to £84,000 yester-
day from £77,000 on Tuesday.
Opposition politicians criticised
the Treasury’s lack of transparency
in the PBR. Shadow chancellor
George Osborne said: “The PBR has
unravelled within 24 hours, as we see
just how deceitful the chancellor has
been. How depressingly cynical that
Labour were not straight with the
public about spending cuts and tax
rises. Why do we have to wait for the
small print to see the truth?”
Citigroup’s Michael Saunders said:
ANALYSIS l Departmental Spending breakdown by year
0 shares if the employees take inappro-
2011-12 to
Average annual real increase
2013-14
-1
-2
-3
-4
Total cut: -£35.7bn
dot com.
BANKING
FSA CALLS FOR
BANKS TO KEEP
AN EXTRA £33BN
IN COFFERS P13
www.cityam.com FREE
“In our view the PBR seeks to create a
fiscal fiction that the deficit can be
resolved solely by tax hikes on a rela-
tively small share of the population
(‘the few, not the many’) and without
painful public spending cuts.”
Labour’s Fiscal Responsibility Bill
was also roundly criticised by the IFS
yesterday, which said none of the
bill’s three rules was sensible. Lloyd Blankfein will get his 2009 bonus in shares Picture: REUTERS
Assuming accurate forecasting and
NO CASH BONUSES
no further policy changes, Darling
would face a 25 per cent chance of
breaking the rule. The Conservatives’
fiscal rule received a similar response
FOR GOLDMAN EXECS
but the IFS forecasts a 60 per cent
chance that the rule will be broken.
ALLISTER HEATH: P2
MORE: P5
the bank will be able to claw back the
▲
Source: IFS BANKING
2011-12 2012-13 2013-14
BY LORA COVENTRY
priate risks.
GOLDMAN Sachs yesterday said its top And shareholders will be able to
30 executives would not get a cash vote on the bank’s remuneration poli-
bonus in 2009 and that investors cies and the individual packages of the
would be able to vote on remuneration most senior staff – including chief
policies in a bid to quell populist anger executive Lloyd Blankfein – at the 2010
in the wake of the banking crisis. annual meeting, although the result
All 30 members of the investment will be non-binding and advisory.
bank’s management committee will “Our compensation policies... incen-
-£15.3bn -£7.6bn -£12.9bn be awarded their 2009 bonus in stock
that cannot vest for five years, while
tivise behaviour that is in... sharehold-
ers’ best interests,” Blankfein said.
NASDAQ ▲2,190.86 +7.13 £/$ 1.63 unc £/¤ 1.11 ▲+0.01 ¤/$ ▲1.47 unc Certified Distribution
05/10/09 – 01/11/09 is 102,499
It’s your world. Trade it.
 2 News
There are no short cuts to prosperity
EDITOR’S LETTER
ALLISTER HEATH
SO much to say; so little space. As
promised, here is another of my occa-
sional collections of random
thoughts.
1) The Office for National Statistics’
wealth survey makes fascinating read-
ing. Education really matters: those
households headed by someone with
a degree or above had the highest
median total wealth of £400,200. The
“no qualifications” group is the least
wealthy with a median of £105,100.
Private pensions are as important as
property: out of the £9 trillion in total
net wealth, net property wealth and
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WHAT THE OTHER PAPERS SAY THIS MORNING
TURKEY FORECASTS RETURN TO
GROWTH
Turkey’s economy should return to
growth by the end of the year,
Durmus Yilmaz, the country’s central
bank governor, said yesterday after
data showed the severity of the reces-
sion easing in the third quarter of the
year. Gross domestic product fell 3.3
per cent year on year in the three
months to September, slightly better
than expected, but with downward
revisions for earlier quarters taking
the contraction over the first 9
months of the year to 8.4 per cent.
TRAVELODGE EYES EXPANSION WITH
NEW FUND
Travelodge is to back the launch of a
£100m ($163m) fund to develop hotels
for the chain being created by
Twenty10 Fund Management, a new
investment group run by City veteran
Christopher Stainforth.
private pension wealth each account-
ed for 39 per cent. Other financial
wealth and physical wealth were just
11 per cent each. The older you get,
the richer you tend to be – until you
pass the age of 65, when your wealth
starts to drop. So there you have it: if
you want to be rich, you must study,
work hard, save a lot and be patient.
It’s not rocket science after all.
2) So the public supports the one-off
tax on bankers’ bonuses, according to
a poll by PoliticsHome.com. The UK-
wide survey of 1,000 people reveals
that 64 per cent believe the tax is a
good idea (but just 44 per cent of Tory
voters agree) against 27 per cent who
oppose the move. The Tobin tax is
backed 46-37 per cent (but Tory voters
are strongly opposed). But for those
who – like myself – oppose both taxes
on the grounds that they would dam-
age the UK’s prosperity, these polls are
actually good news: I feared the pro-
tax tide would have been even
stronger by now.
3) Moral hazard was one of the root
Galleon case
nets lawyer
HEDGE FUNDS
▲
BY CHRIS KAY
A LAWYER admitted yesterday to
being involved in the insider trading
scandal at US hedge fund Galleon,
becoming the sixth person incriminat-
ed in the case.
Brien Santarlas told the US federal
court in Manhattan, that he “knew
what [he] was doing was wrong” when
he gathered confidential information
used to buy 75,000 shares in 3Com.
Santarlas, who left law firm Ropes &
Gray in 2008, is the sixth to plead
guilty in what US prosecutors say is
the largest-ever hedge fund insider
trading case. One of the group is Raj
Rajaratnam, the billionaire founder of
Galleon.
Released on $200,000 bail,
Santarlas’s sentencing has been sched-
uled for 1 June next year. He faces a
LLOYDS USES ‘PRE-PACK’ AT ASHWELL
Lloyds Banking Group has used the
“pre-pack” administration process to
restructure one of the largest private
property developers in south-east
England as it continues to work
through the legacy of the former
HBOS problem loan book. The bank
will become a major shareholder
through swapping its debt for equity
in a new company created to cherry-
pick and develop some of the best
schemes owned by Ashwell Property.
LACHLAN MURDOCH PULLS OUT OF
NIELSEN BID
Lachlan Murdoch, the eldest son of
media mogul Rupert Murdoch and a
director of his News Corp empire, has
withdrawn at the last minute from a
consortium of investors bidding for
the bulk of Nielsen Business Media.
Pluribus Capital Management, a
newly formed private equity vehicle,
confirmed it had agreed terms to buy
Billboard, The Hollywood Reporter
and six other Nielsen properties.
causes of the crisis. Encouraged by
government safety nets, the rescue of
the LTCM hedge fund in 1998 after the
Russian financial crisis and explicit
messages from central banks that big
banks were too important to be
allowed to fail, many institutions took
excessive risks. But who says banks
cannot go bust? Around 130 US retail
banks have gone to the wall and been
wound up (and sold on) this year
alone. Rather than lamenting that
fact as some sort of failure, we should
be celebrating this (limited) return to
economic rationality and learn les-
sons from it. Banks – even giant ones –
need to fear the possibility of going
bust again. The answer is living wills,
transparency about counterparty
exposure and a new bankruptcy code.
4) No wonder gilt yields shot up yes-
terday. The Treasury’s own rule of
thumb says that each one percent
decline in GDP increases the budget
deficit by 0.7 percentage points of
GDP, or roughly £10bn. So if you think
the economy will grow by one per
maximum 20-year jail term for his
part in the fraud.
Ropes & Gray rushed to defend the
company’s reputation because anoth-
er lawyer from the firm, Arthur
Cutillo, has also been charged in rela-
tion to the case.
Galleon group founder
and hedge fund dealer
Raj Rajaratnam is one
of the defendants that
has pleaded guilty
“The actions of these two former
associates represent an extreme
breach of their duty of trust to our
clients and the firm, as well as gross
violations of our policies and civil and
criminal law,” Andy Brimmer, a
spokesman for the law firm said yes-
terday.
INDUSTRIAL DEMAND FOR
ELECTRICITY IS STILL FALLING
Industrial demand for electricity is
continuing to plunge in Britain,
despite signs of an upturn in the
nation’s economic fortunes, accord-
ing to new government figures.
Sales of electricity to factories, mines
and other manufacturing sites fell by
11.3 per cent to 22.3 terawatt hours in
the three months to 30 September,
down from 25.05 terawatt hours in
the same period last year.
APPLE ACQUIRES DIGITAL STREAMING
SERVICE AHEAD OF AN EXPECTED
REVAMP OF ITS MUSIC RETAILER
Apple is expected to launch a new
way of selling music on its iTunes
online music store after acquiring
Lala, a digital streaming service. The
company is thought likely to inte-
grate the technology behind Lala into
iTunes over the next year.
cent a year less than the government
thinks for the three years starting in
2011 – a reasonable estimate which
would see GDP rising by 2.5 per cent
or so a year – the cumulative extra bor-
rowing would reach £30bn. Hence
why the markets are so nervous.
5) Manufacturing was worth over 20
per cent of GDP in 1997; it is now bare-
ly above 11 per cent. By contrast, dur-
ing Margaret Thatcher’s tenure,
manufacturing barely shrank, drop-
ping from 25.8 per cent to 22.5 per
cent of GDP. The recovery in world
trade will give UK factories a fillip
next year; but no developed economy
has ever been able to swim against the
tide and rebuild its market share in
industrial goods. Services will contin-
ue to propel UK growth in the years
ahead. We could encourage high-tech
manufacturing by creating low-tax,
low regulation enterprise zones – but
we cannot expect manufacturing to
be anything other than an increasing-
ly small part of our economy.
allister.heath@cityam.com
Jim Lawrence lost out on the top job at Unilever last year
Lawrence leaves Unilever
CONSUMER GOODS
▲
BY LORA COVENTRY
JIM LAWRENCE, chief financial offi-
cer of Unilever, became the latest
executive to leave the consumer
goods giant yesterday, after losing out
to Paul Polman in the race for the top
job a year ago.
Over 40 of the top 100 executives at
the group – which makes Marmite,
Magnum ice creams and Domestos –
have left since Polman took over as
chief executive.
AOL SHARES FALL ON DEBUT TRADING
DAY
Investors initially shunned AOL’s
shares on its first day of independent
trading after almost a ten-year
absence, a lukewarm reception to the
digital company’s new solo future.
Shares in the newly separated AOL –
which demerged from Time Warner
on Wednesday night – traded down by
as much as 3.5 per cent yesterday,
with the former internet giant being
valued at close to $2.5bn (£1.5bn).
COPENHAGEN CLIMATE SUMMIT:
BUSINESSES 'SQUEEZED OUT' OF
TREATY DISCUSSIONS
World leaders have harmed the credi-
bility of the Copenhagen climate
treaty amongst the financial commu-
nity by squeezing business groups out
of the summit, according to the
Business Council for Sustainable
Energy.
CITYA.M. 11 DECEMBER 2009
NEWS | IN BRIEF
Lord Heseltine hands over reins
Lord Heseltine is handing over the day-
to-day management of Haymarket
Media Group to his son Rupert after half
a century at the helm. The trade maga-
zine publishes titles such as Campaign
and Management today and was co-
founded by the 76-year-old former
deputy prime minister in 1957. Lord
Heseltine will continue as chairman of
the group while his son, who joined the
firm in 1994, is now deputy chairman.
Heseltine refocused on his media career
after the Tories’ defeat in 1997 and took
up the role of chairman two years later.
US mortgage defaults top 300,000
The number of foreclosures on US home
loans topped 300,000 for the ninth
month in a row in November.
Foreclosure filings, including default
notices, scheduled foreclosure auctions
and bank repossessions, were reported
on 306,627 US properties. But the total
number fell for the fourth month run-
ning. Still, July's positive reading came
from loan modification programmes
that may not permanently remedy many
failing mortgages, real estate data com-
pany RealtyTrac said.
But the group played down talk of
a boardroom bust-up, saying
Lawrence was getting no payoff, and
that he was not selling any of his $8-
$9m (£4.9-£5.5m) worth of shares.
Unilever said a replacement for
Lawrence from outside the company
is set to be announced by the end of
year, and would be named once con-
tractual issues had been resolved, and
added that the move was part of a
well-planned succession process.
Lawrence said he would be avail-
able to handover to his successor.
CALIFORNIA COMPANY TO ACQUIRE
TWO LEHMAN REAL-ESTATE FUNDS
Lehman Brothers Holdings is expect-
ed to announce the sale of two real
estate private-equity funds, according
to people familiar with the situation,
in the latest move by the collapsed
New York investment bank to shed
assets and wind down the firm.
PCCP, a Los Angeles-based real estate
investment firm, will acquire the two
funds, which have roughly $2bn in
assets under management.
CHEVRON SHIFTS FOCUS TO
EXPLORATION AND DEVELOPMENT
Chevron said its capital budget will
be $21.6bn (£12.9bn) next year, 5 per
cent lower than its 2009 budget, as
the company focuses on exploration
and development of oil and natural
gas at the expense of refining. The
shift comes as the refining business
has become less profitable.
CITYA.M. 11 DECEMBER 2009 News 3

Moody’s cuts credit ratings

on three Dubai-based banks
Dubai government’s announcement the repercussions on the banks’ asset

▲
WORLD ECONOMY
BY ALYSSA WOLICE
MOODY’S Investors Service downgrad-
ed its ratings of three Dubai-based
banks yesterday due to uncertainty
regarding debt restructuring and a
lack of government support over the
emirate’s debt obligations.
The downgraded issuer ratings for
Dubai Islamic Bank, Mashreqbank
Sarkozy backed Brown’s tax on banking bonuses Picture: REUTERS and Emirates NBD come after the
on 25 November that it wanted to
delay repayment of billions of dollars
worth of debt at Dubai World, one of
its biggest conglomerates and owner
of real-estate developer Nakheel.
The government and Dubai World
remain in talks with banks and credi-
tors about restructuring the compa-
ny’s $26bn (£16bn) of debt.
“The rating downgrades reflect the
weakening in Dubai’s economy and
quality and earning power,” Moody’s
said in a statement yesterday.
It added that the banks’ direct expo-
sures to Dubai World are manageable
given the company’s high capitalisa-
tion levels, but the negative invest-
ment sentiment sparked by the
restructuring could have long-term
effects on Dubai’s economy and the
banks’ abilities to access debt markets
at cost-effective rates.

France backs
Britain in tax
on bonuses
must be taken must be at a global
▲

FINANCIAL SERVICES
BY JULIA KOLLEWE
GORDON Brown and French presi-
dent Nicolas Sarkozy put on a united
front yesterday when they jointly
called for a global tax on financial
sector bonuses as well as financial
transaction levies.
German chancellor Angela Merkel
also made some supportive com-
ments on the bonus raid, though she
is thought to prefer a Tobin tax.
She called the tax “a charming
idea” and said it showed how “others
can learn from the City of London”.
The news came as France pro-
posed following the UK in imposing a
super-tax on bank bonuses. A French
official said the government would
match the UK’s one-off 50 per cent
tax on bank bonuses, reportedly on
payouts over €27,000 (£24,000).
Writing in the Wall Street Journal
ahead of a meeting in Brussels,
Brown and Sarkozy said: “We agree
that a one-off tax in relation to
bonuses should be considered a pri-
ority, due to the fact that bonuses for
2009 have arisen partly because of
government support for banks.
However, it is clear the action that
level.”
Brown also wrote a letter to his 26
fellow EU leaders at the opening of a
summit last night. He said: “The EU
should work actively with our inter-
national partners to develop propos-
als to ensure a better balance of risks,
rewards and responsibility between
society and the financial sector.” He
added: “Again now, banks have made
very large profits, and some of their
employees have received bonuses
equal to many multiples of average
earnings.”
Compensation has emerged as a
key issue in the debate about finan-
cial-sector reform. The Financial
Stability Board, created by the G20
nations to coordinate regulatory
reform, has issued pay guidelines and
says it will work to see that they are
followed from next year. The rules
focus mainly on responsible rewards
for risk and how compensation
affects capital levels, rather than the
size or timing of bonus payments.
The US has so far shown little sign
it will follow the UK’s lead. Congress
briefly considered imposing a special
tax on bonuses earlier this year but
then dropped the idea.

NEWS | IN BRIEF
Greece vows swift action on debt
Greek prime minister George Papandreou
yesterday acknowledged swift action
was necessary to bring the country’s
budget deficit under control, and to
restore confidence in its bond and stock
markets. As the country’s debt hit
€300bn (£272bn), Papandreou pledged
to give details early next week on how
his government would slash the budget
deficit from 12.7 per cent to 3 per cent of
gross domestic product, which the euro-
zone states as its limit.
Merlin recruits John Sunderland
Merlin Entertainments, which runs
Madame Tussauds, Legoland
and the London Eye, has appointed Sir
John Sunderland as chairman.
Sunderland, the former chief executive
and chairman of Cadbury Schweppes
and president of the Confederation of
British Industry until 2006, takes over
from Peter Phillipson, who will pursue
other interests within private equity
backed businesses and with The Children
With Special Needs Foundation. Kinetic Direct Drive
Daimler jobs are safe until 2020
Daimler, the German luxury car maker ,
yesterday told 37,000 staff that their
jobs were safe for the next 10 years, as it
announced plans to create around 2,000
new positions. A deal made with work-
ers’ representatives means job losses for
economic reasons are now banned at the
Mercedes-Benz site in Singelfingen,
southwestern Germany, for the next 10
years.
At the start of December, the car group
had said it would move production of its
C-Class car from north Bremen to
Alabama in the US, to China, and to
South Africa after 2014 as it sought to
lessen the impact of negative foreign
exchange on its profits.
CITYA.M. 11 DECEMBER 2009 News 5

ANALYSIS l Average annual real growth: 2011-2013 ANALYSIS l Eventual annual cost of fiscal tightening
12 11.3 Total tightening = 5.4% of national income
which is £76bn or £2,400 per family
10
Unknown tax or Tax increases,
current spending, £16bn or £490
8 £30bn or £925
Cumulative cut: 12.3% or £25.5bn per family
per family
6

Average real annual increase

4

-2
Other
DEL*
Overseas
development
0.0
Health
0.7
“Front-line”
schools
0.0
Sure
start
Almost 40% of
£
assistance
repairs left
-4 (down from 50%
at Budget time)
Current spending
-6 cuts, £18bn or £570
Investment spending cuts, per family
*Departmental expenditure limits
-8 -6.4 £13bn or £420 per family Source: IFS
Source: IFS

Director of the IFS Robert Chote said public services would be squeezed severely

IFS reveals
hidden cost of
Darling’s plan
schools, Sure Start and Overseas
▲

UK ECONOMY
BY JESSICA MEAD
GOVERNMENT departments that
have not been afforded protected sta-
tus by the Treasury will face swinge-
ing cuts on their expenditure limits
of £25.5bn by 2012-13 as part of
Labour’s fiscal tightening plans.
The Institute for Fiscal Studies (IFS)
estimates that departmental expendi-
ture limits (DEL) need to be cut by 3.2
per cent a year in real terms between
2011-12 and 2013-14 to pay for the ris-
ing cost of social security, debt inter-
est and other annually managed
expenditure such as tax credits while
keeping total managed expenditure
virtually unchanged.
Chancellor Alistair Darling has
already announced that £35.7bn of
spending cuts will be needed by 2013-
14. He claims to have identified
£20.4bn in cuts, of which £11bn is in
efficiency savings.
But with spending on health,
Development Assistance (ODA) pro-
tected in 2011-12 and 2012-13, this will
mean other departments face cuts of
£25.5bn, equal to a cumulative 12.3
per cent.
But the IFS’s Gemma Tetlow point-
ed out that any of the savings already
identified that fall within protected
budgets could not contribute to the
spending cuts.
For 2013-14, only ODA has so far
been earmarked as protected, but
Tetlow said that measure alone
would equate to an extra £14bn cut in
other DELs or a four per cent real cut.
Significant unprotected depart-
ments that may see budgets slashed
include defence, higher education,
transport and housing.
The IFS forecasts that the cuts will
reverse all of Labour’s increases in
public services spending since 2001
by 2013-14 as a percentage of GDP.
Should the cuts continue, all increas-
es since 1997 could be reversed.

IFS: Two Parliaments of pain

ahead for the British economy
remaining two-thirds. In order to
▲

UK ECONOMY
CHANCELLOR Alistair Darling or his
successor will need to find £76bn over
the next two “Parliaments of pain” if
he is to bring the country’s fiscal
deficit under control, the Institute for
Fiscal Studies (IFS) warned yesterday.
The leading think-tank said that by
2014-15 one-third of the tightening
would come from tax hikes while
spending cuts would fund the
fund the full 5.4 per cent repair of the
economy by 2017-18, the chancellor
will need to detail a further £30bn of
tightening measures.
But this is a smaller fiscal hole
than Darling estimated in the Budget.
The IFS’s Carl Emmerson also
warned that without measures to
tackle the growing burden of an age-
ing population, net debt could stay as
high as 60 per cent of GDP.
 “If there’s a phone
to jump ship for, it’s this.”
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CITYA.M. 11 DECEMBER 2009
British household wealth hit £9 trillion in 2008
▲
ECONOMICS
BY JENNY FORSYTH
THE nation’s household wealth
totalled some £9 trillion between 2006
and 2008, and was dominated by pen-
sions and property assets, new official
figures revealed yesterday.
The Office for National Statistics
survey shows that the average wealth
per household was £204,500, with the
South East claiming the highest aver-
age wealth of £287,900 per household.
The wealthiest 10 per cent owned
44 per cent of Britain’s personal
assets, almost five times more than
the least-wealthy half.
HM Treasury
makes case
for Tobin tax
▲
FINANCIAL SERVICES
BY JULIA KOLLEWE
THE Treasury has set out the case for
a Tobin tax on financial transactions,
stressing that it needs to be imple-
mented internationally and be levied
on trading in a wide range of instru-
ments, both on and off-exchange.
Both derivative and spot markets
would need to be covered by a trans-
action tax, including over-the-counter
transactions, futures, options and
credit default swaps, the Treasury
said in a report on the financial sec-
tor and society.
One suggestion is to aim the tax at
those transactions that create the
greatest distortions, such as off-bal-
ance sheet transactions, which have
been cited by some as one of the rea-
sons behind the current financial
crisis.
However, they may also be the most
difficult to tax, the Treasury admit-
ted in the document.
Financial Services Authority (FSA)
chief Lord Adair Turner has argued
that “the fact the market liquidity
has an economic value does not
mean that more market liquidity,
CITY SLAMS THE
GOVERNMENT’S
TOBIN TAX PLAN
MANY in the City were yesterday
expressing their alarm at the idea of a
“Tobin tax”.
Philip Shaw, chief economist at
Investec (above), said: “This is a dan-
gerous form of tax to be considering
and a retrograde step. One pitfall is
that unless there is a global buy-in on
a Tobin Tax, its introduction here
would drive business away from the
UK without raising much in terms of
extra revenue.
“It also discourages participation in
financial market activity, potentially
reducing liquidity in key areas, the con-
sequences of which we have all wit-
News 7
Property and private pensions ANALYSIS l The richest 10% own 44% of the wealth ANALYSIS l Most of wealth is property and pensions
accounted for 39 per cent of wealth
each while financial wealth and phys-
£bn
3,500
ical wealth – including cars and
antiques – each made up one ninth of Pension
3,000
the total. Physical
%
Of the 30,000 households surveyed, 2,500
just over 50 per cent had saved in the Financial (net)
Pension Property
previous year and 35 per cent had
never saved.
Although 83 per cent of respon-
2,000
1,500
Property (net) wealth
39 39 wealth
dents expected to receive a state pen-
1,000
sion, just 59 per cent expected to get
an occupational or private pension.
But only 40 per cent of men and 32
per cent of women were contributing
500
0
Deciles Physical
11 11 Financial
to a private pension. 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th wealth wealth
supported by more speculation, is
limitlessly beneficial in all markets”.
The Treasury concluded that a
“financial transaction tax may not
have the extent of negative economic
impact that some have feared”.
It stressed that the tax must have
the commitment of all the major
international financial centres in
order to work.
It also argued for a “very low rate”
which would have much less distor-
tionary impact than a higher rate
while still potentially raising a “signif-
icant” amount of money.
The International Monetary Fund
is due to publish a preliminary report
on the Tobin tax in April and its final
report in June.
The idea has met with widespread
opposition in the City. However,
Alastair Constance of brokerage
Ethical Currency supports a levy on
currency transactions alone to raise
funds for social objectives.
He said: “We believe a half a basis
point (0.005 per cent) charge on cur-
rency transactions is both feasible
and practical. Ethical Currency incor-
porates the levy as part of its business
plan already.”
nessed after the credit crunch began
to bite in late 2007.
“If the government is serious about
implementing such a scheme, one
wonders whether it would consider
scrapping stamp duty on share trans-
actions.”
Andrew Clare, professor of asset
management at Cass Business School,
said: “Tobin was a very clever econo-
mist. But even very clever men have
very silly ideas sometimes. However, it
is sillier still for supposedly intelligent
men to continue to talk about this tax
when it is blatantly obvious that it
was an unworkable proposal for the
twentieth century, let alone for the
complexities of the twenty first centu-
ry.”
Peter Vipond, the ABI’s director of
financial regulation and tax, said: “The
Treasury is right to stress that a Tobin
tax can only work if adopted interna-
tionally. Without global agreement,
this could harm the UK economy.”
 8 News
Ex-Lehman
pair snap up
Marex stake
▲
PRIVATE EQUITY
BY VICTORIA BATES
FORMER Lehman Brothers bankers
Jeremy Isaacs and Roger Nagioff have
christened their new investment ven-
ture with its first acquisition, buying
up a majority stake in London-based
independent futures broker Marex
Group.
The pair, who set up investment
firm JRJ Group in January this year,
plan to take a private equity-style
active operational role in Marex.
Isaacs will take up the position of
chairman at the firm, while Nagioff
will work with management on a
daily basis to help grow the busi-
ness.
The firm did not disclose the price
of the deal but the figure is thought
to run into the hundreds of millions.
After the deal is completed, JRJ will
own 75 per cent of Marex, while cur-
rent majority shareholder Marathon
Asset Management will retain a 20
per cent stake and the firm’s manage-
ment will hold five per cent.
Isaacs said yesterday that JRJ
planned to take advantage of Marex’s
strength in the commodities sector.
“The world is a highly volatile place
at the moment but we are confident
we have bought at a very good point
in the cycle,” said Isaacs.
“We are committed to building
Marex both through acquisitions and
organic growth, with the aim of turn-
ing it into a world-leading company
in the commodities space.”
Isaacs added that JRJ has no precise
exit timetable at present but is taking
a “relatively long-term view”.
Marex reported revenues of £84m
and a pre-tax profit of £26.3m for the
year to March 2009, and holds £110m
in cash on its balance sheet.
It has offices in Geneva and New
York but is primarily based in London,
where it employs 200 people and has a
big presence on the London Metal
Exchange.
As well as metals, it is also active in
coffee and cocoa and has an energy
business, a foreign exchange plat-
form and a financial futures business.
Firm friends and former Lehman colleagues Jeremy Isaacs, left, and Roger Nagioff
JEREMY ISAACS AND ROGER trading in Europe for Goldman Sachs,
NAGIOFF having started his career at the tender
age of 17 as a runner for Smith
CO-FOUNDERS OF JRJ GROUP Brothers on the floor of the London
Stock Exchange.
For his new venture, Isaacs teamed
JRJ GROUP was founded in January up with Roger Nagioff, the former
this year by Jeremy Isaacs and Roger head of fixed income at Lehman who
Nagioff, who both formerly held resigned at the end of 2007.
prominent positions at collapsed US The relationship between the pair
banking giant Lehman Brothers. goes back further than their time
Isaacs, now in his mid-forties, was together at the bank, as they have
chief executive for the bank in Europe, been close friends for 35 years, since
the Middle East and Asia Pacific, but their early teens.
showed an impeccable sense of timing The acquisition of a majority stake
when he announced his intention to in Marex Group is the first investment
leave in June last year. He departed the pair have made with JRJ Group,
just three months before the firm’s which Isaacs says has raised substan-
demise. tial funding from high net worth indi-
Prior to his time at Lehman viduals, family offices and institutional
Brothers, Isaacs ran equity derivatives investors.
CITYA.M. 11 DECEMBER 2009
Irish premier
defends tough
budget choices
WORLD ECONOMY
▲
IRELAND’S Prime Minister fought off
domestic criticism of his govern-
ment’s €4bn (£3.6bn) in budget cuts
yesterday, even as the move appeared
to somewhat calm debt markets
rocked by worries in other struggling
eurozone economies.
Analysts said the budget, which
slashed between five and 15 per cent
from public sector wages, in reality
was still just the start of a process
that must see substantial further cuts
in public spending and deflation to
make Ireland more competitive.
“The assertion made by (finance
minister Brian Lenihan) that we have
turned the corner and that the worst
is over does not sit that comfortably,”
Friends First chief economist Jim
Power said.
“While we saw no meaningful
changes in direct taxation, there is a
promise of considerably more pain.”
Economists say Ireland’s task, after
it paid billions to deal with the col-
lapse of its property boom, may now
look more like the “internal devalua-
tion” facing Latvia, Estonia and
Lithuania than a straightforward
righting of public finances.
Ireland’s economy is set to shrink
around eight per cent this year, one of
the deepest recessions in the devel-
oped world.
CITYA.M. 11 DECEMBER 2009 News 9

LSE could take on Liffe in

battle for futures trading
tle for Liffe in 2001. Index, said: “It seems like an absolute-
▲

FINANCIAL SERVICES
BY OLIVER SHAH
THE London Stock Exchange (LSE) is
understood to be preparing to take on
NYSE Euronext’s Liffe market by
offering futures and options on FTSE
100 companies.
A move to sell futures based on the
UK’s best known firms would mark
an aggressive push by the LSE, which
lost out in a hard-fought bidding bat-
It is thought chief executive Xavier
Rolet, who took over from Dame
Clara Furse in May, is trying to
expand the bourse’s business model.
In November the LSE reported a 40
per cent drop in net first half profit as
equity trading flowed to competitors
– a harsh reminder of the need to
diversify.
Analysts greeted the news positive-
ly. Joshua Raymond, strategist at City
ly natural move. It’s been a long time
coming. If they can take any market
share from Euronext Liffe, they
would consider that a good result.”
The LSE already offers derivatives
through its EDX London and IDEM
platforms. In November, the average
number of daily contracts traded on
the two markets was around 508,000,
compared with 4.3m on Euronext
Liffe and 9.4m on Eurex. Derivatives trading was traditionally the realm of the Liffe open-outcry floor Picture: PA

OFT blows
£950k on
banks case 
$&('#$#' #$+ ' &('
▲

BANKING
BY CHRIS KAY
THE Office of Fair Trading spent just
over £950,000 on legal fees in its
failed pursuit to investigate bank
overdraft fees, City A.M. has learned.
The external legal costs, released
after a freedom of information
request, crossed over the three related

$ !$# +(

court actions from the first hearing
in April 2008, ending in a successful
appeal in favour of high street banks
in the Supreme Court last month.
Experts claim the cases were over
factual aspects of law, not involving
costly or lengthy appearances that
could command such fees.
   
“It does sound like an awful lot of
money for a relatively confined issue
of law,” said Mathew Rea, from
Dawsons Solicitors.
  

The OFT has to answer why so
much money was spent on a case the
courts saw as “fatally flawed”, said
Mark Wallace, from the Tax Payer’s     
Alliance.
“Irrespective of the rights or


 

wrongs of the case, the size of this bill
is a cause for concern. Quangos like
the OFT are often viewed as soft
touches by all sorts of private contrac-
tors, and lawyers are no different,” he
said.
&.' #$ &'$# #$( ($ (& +( $&('#$#'$"
NEWS | IN BRIEF
)'( % ( ($ -$)&'! !&(
Wafic Said buys Stearns office
Wafic Said, one of Britain’s richest men,
led a consortium to buy the former
headquarters of Bear Stearns in Canary
Wharf, it emerged yesterday. It is
understood Said, a kebab shop owner
turned billionaire Saudi fixer, splashed
%& ((# +( $&('#$#' # &')!( # !$''' &(& (#
out £208m for 5 Churchill Place. Most
of the address is occupied by US bank
JP Morgan, which bought out Bear
-$)& #(! %$'( )( #*& "$& (# ( )#' ! # -$)& $)#(
Stearns as it teetered on the brink of
collapse last year.



 

 

Good progress at Begbies Traynor
Begbies Traynor said yesterday its
results for the first half would be in line
with expectations, and “significantly”
ahead of the same period last year, as
good progress was made in the group’s
insolvency division. But, the company’s
non-insolvency divisions continued to
experience challenging market condi- $&('#$#'$" '  (&# #" $ %&, ( + ' )($&' # &)!( - ( ##! &*'
)($&(-
tions. Overall results will be lower than
those of the same period last year, with
the full effects of the current economic
environment impacting the tax division.
 The Capitalist
10
GOSSIP-LOVING DELOITTE ANALYST
PUTS THE SEX BACK INTO THE CITY
TO all those who have not yet been
warned off inappropriate use of the
company email, let this be a lesson to
you. Just three days ago, young Holly
Leam-Taylor, one of the first year ana-
lysts at accountancy giant Deloitte
recently decided to get creative in the
run-up to Christmas and launch her
very own awards via a round-robin
email to her female colleagues.
“It’s been nearly four months at
Deloitte so I think we should have
some sort of Xmas awards ceremony
for us ladies about the stuff that real-
ly matters at work i.e. gossip/ the
boys!” she wrote, full of the joys of the
festive season.
Categories for said prizes included
“The official Deloitte First-year
Analyst Girls Man of the year”;
“Fittest boy – looks”; “Fittest boy –
body”; “Boy with the best personali-
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
ty”; “Most attractive ‘older’ member
of staff”; “Best piece of gossip you’ve
heard so far this year”; and – most
amusingly – “Boy most likely to sleep
his way to the top”.
At the time of writing, it had
entered The Capitalist’s inbox no less
than four separate times, and the
poor girl is already a celebrity on
Twitter. Something tells me this
won’t go away in a hurry…
Any nominations for festive City sexpots are gratefully received at Deloitte Pictures: REX
ROCK ROYALTY
Hedgie Mark Lowe, owner of Nomos
Capital, has evidently been taking a
little time out of late from the court
case brought against him by former
employee Jordan Wimmer, who is
suing for sex discrimination, unlawful
deduction of wages, unfair construc-
tive dismissal and disability discrimi-
nation, which Lowe contests.
In comes a missive from Nomos
promoting a new multi-manager
fund of funds named after soft rock
group Earth, Wind and Fire (it’s all
about socially responsible energy
investment funds, you see, hence the
catchy name).
Earth, Wind and Fire in all their glory
Still, as a fund management chum
points out, if Lowe loses the case, he
could always take some advice from
the name of the band’s 2002 album
and go to “Live in Rio”...
PITCH PERFECT RETAIL THERAPY
Off to the Nomura Varsity Match yes- After a hectic day of parrotting about
terday at Twickenham, where the
Japanese bank was proudly flying the
rugby flag for the second time since
taking over the sponsorship deal from
Lehman Brothers last year.
Of course, last year, it
had only a matter of
weeks to whip its plans for
the event into shape,
but this time
around, things
were slicked
right up to
standard.
The rugby
kicked off
with a match
between a bunch of
children from the
academy run by ex-
England star Josh
Lewsey, supported by
Nomura, before the pièce
de résistance, which the
Cambridge light blues even-
tually won 31-27, leaving their
Oxford counterparts deflated.
Cheering on the beefcakes
and enjoying the bank’s gen-
CITYA.M. 11 DECEMBER 2009
erous hospitality were a whole raft of
clients, along with the likes of former
chief whip Geoff Hoon and ex-London
Stock Exchange chief executive Dame
Clara Furse – gamely doing her duty
as a newly-appointed board director
at the bank.
POWERING DOWN
Interesting to note that the website for
Bramdean Asset Management, Nicola
Horlick’s investment vehicle, has gone
down for “maintenance” now that her
lucrative contract to manage the
Bramdean Alternatives fund has been
sold to rival Aberdeen.
Too many changes to implement in
a snap hour-long IT upgrade, perhaps?
TRAMP-VESTITE
Regular readers may remember hear-
ing a few weeks ago of the Square
Mile’s friendliest neighbourhood
tramp, who has paced the streets
around St Paul’s and Gresham Street
for as long as people can remember
wearing one of his two regular cos-
tumes – either a Bob the Builder outfit
or a Santa Claus suit, regardless of the
time of year.
But what’s this? I hear that yester-
day, for the first time in living memo-
ry, our favourite vagrant donned new
attire, in the form of a flowery dress
and policeman’s hat. Where on earth,
I’d like to know, does he get his inspi-
ration?
the pre-Budget Report on Wednesday,
senior staff members from
PricewaterhouseCoopers decided to
take a bit of a break from accounting
and try their
hand at some-
thing different
for a change.
Over 20 teams
from the firm
gathered at var-
ious Barnardo’s
shops around
the UK to help
out on the sales
floor and man
the tills in order
to raise money
for the charity –
handling not just
the usual cast-offs
but beautiful
goods from the
likes of luxury
shoemakers Jimmy
Choo and Kurt Geiger,
treats from Piccadilly store
Fortnum & Mason and designer
clothes from Harvey Nichols.
CITYA.M. 11 DECEMBER 2009 Focus on Private Equity 11

Private equity
Simon Walker,
chief executive of
the BVCA, said the
figures were a tes-
tament to the
industry’s decision

productivity
to keep investing
during the reces-
sion

Picture: REUTERS

beats rivals
economic outlook remains uncer-
▲

PRIVATE EQUITY
tain,” said Simon Walker, chief execu-
BY JULIA KOLLEWE
tive of the BVCA. “Private
BUSINESSES run by private equity equity-owned companies are not
groups have been much more produc- immune from the continuing reces-
tive than other companies during the sionary pressures.
economic downturn, an industry Managing companies through the
body said yesterday. downturn and investing in them in ANALYSIS l Annual Organic Growth Rates
Firms’ average productivity preparation for the upturn when it 12%
reached 7.7 per cent, far ahead of the arrives will continue to be the priori-

8.8%
UK’s one per cent average rate, the ty for private equity firms.”
British Private Equity and Venture The report is a rare piece of good 10%
Capital Association (BVCA) said in its news for the private equity sector,
annual report, published in associa-
tion with Ernst & Young.
The figures were based on results
which suffered a severe setback when
the credit crisis struck in 2007, put-
ting an abrupt halt to the cheap debt-
8%
6.5% 7.5% 2009 result
2008 result
for 2008 and the year to March 2009 fuelled buyout boom of previous
from a portfolio of companies includ- years. 6%
ing Alliance Boots, New Look, The value of many businesses has

3.0%
Travelodge, Fitness First and Center collapsed since then, which has
Parcs. Average annual profit growth wiped out several private equity 4%
was 11 per cent, with average organic investments and forced some buyout
growth – excluding acquisitions – of firms to give stakes to banks to reduce
8.8 per cent. their debt burden. 2%
“While the profit and productivity The report surveyed 47 businesses
growth figures are testament to pri- which were acquired for an aggregate
vate equity’s focus on portfolio man- £82bn in enterprise value and employ 0%
agement through the recession, the around 353,000 people. Reported EBITDA Reported revenue Source: BVCA

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 12 News
Credit Suisse appoints safe
pair of hands as next chair
▲
BANKING
BY OLIVER SHAH
BANKING giant Credit Suisse has
named insider Urs Rohner as its next
chairman, signalling a focus on sta-
bility and the continuation of its con-
servative strategy.
Rohner, a 50-year-old lawyer who
has sat on the Credit Suisse board
since 2004, will take over from Hans-
Urs Rohner has been named Credit Suisse’s next chairman Ulrich Doerig in April 2011 after a
handing over period.
It is thought the Swiss group will
keep its management team in place
under chief executive Brady Dougan.
Speculation over the role of chair-
man has circulated for some time
because Doerig is 69, and Rohner’s
appointment came as no surprise to
analysts. Jonathan Tyce at FBR Capital
Markets said: “It’s a difficult environ-
ment out there and Credit Suisse
wants a steady hand to keep the ship
Citigroup in
talks to repay
bailout funds
▲
BANKING
BY CHRIS KAY
CITIGROUP was in talks with the US
Treasury yesterday over launching an
equity offering to pay back bailout
funds to the government.
The bank is planning to go cap in
hand to markets to raise some $15bn
(£9.21bn) as it tries to return some of
the $20bn paid out to it under the
Troubled Asset Relief Programme
(Tarp).
The fragile talks have been better
received by the Treasury than regula-
tors the Federal Deposit Insurance
Corp (FDIC), which has been critical
over Citi’s position, one of the last
banks to pay back the government.
Talks have focused on how the gov-
ernment, which owns around a 34
per cent stake in Citi, will sell off its
shares in the bank.
The bank is keen to escape the gov-
ernment’s pay restrictions by the end
of the year, believing it could see
some of its most talented employers
flee to other firms.
Harris Williams spots a
gap in UK middle market
▲
BANKING
HARRIS Williams & Co, the US-based
technology specialist, has opened a
London office in a move that will pit
it against the likes of Arma Partners.
The niche investment bank, which
focuses on companies with market
caps below $1bn (£620m), is looking
to assemble a team of 12 professionals
for its Mayfair office by the end of
2010. Positions still unfilled range
from managing directors to analysts.
Harris Williams has made a name
for itself in the US advising compa-
nies such as GE, Cardinal Health and
Procter & Gamble. In the UK it will
have few direct competitors,
although big players such as Lazard
CITYA.M. 11 DECEMBER 2009
going in the right direction. I expect
his main tasks will be building out
the fixed income side and managing
risk and return tightly.”
Announcing the handover, Doerig
said consistency was “at the heart of
Credit Suisse’s success”.
In October the bank reported
strong third quarter results, with net
income of SwFr2.4bn (£1.4bn) under-
pinned by investment banking per-
formance.
Both the government and the FDIC
are keen to make sure that Citi can
stand on its own. FDIC chair Shelia
Bair said last week that regulators
must be “very careful” about how
repayments are made so that big
banks will not be bailed out again.
US treasury secretary Timothy
Geithner said it was good that the
institutions want to return bailout
cash, but agreed with Bair.
“The basic objective is to make sure
as we exit ... we’re leaving the capital
position of the institutions stronger,
not weaker,” he said.
ANALYSIS l Citigroup
p
3.87
5
10 Dec
4.8
4.4
4
3.6
22 Sep 13 Oct 2 Nov 20 Nov
and Rothschild occasionally dabble in
middle market technology mergers.
The firm believes it has spotted an
opening for a narrower focus.
Thierry Monjauze, head of Harris
Williams in London, said the long-
term aim would be to develop teams
to specifically look at sectors includ-
ing healthcare, transport and media.
He said that while M&A activity
was resurgent, ongoing difficulties in
debt markets meant deal sizes next
year would be far smaller than those
seen in the boom year of 2007.
Monjauze added: “[The landscape]
is nowhere near where it was two or
three years ago, but broadly based on
our experience in America it’s getting
better.”
CITYA.M. 11 DECEMBER 2009 News 13

AnaCap buys
Banks told to Czech retail
find an extra bank for €47m

£33bn capital
PRIVATE EQUITY

▲
PRIVATE equity group AnaCap
Financial Partners, which earlier this
year bought lender Cattles’ invoice
finance business and UK bank
Aldermore, yesterday said it would
acquire the Czech subsidiary of Italy’s
make sure it is of sufficient quality to Banco Popolare for €47m (£42.5m).
▲

BANKING
BY RACHEL STEVENSON withstand a major shock to their AnaCap said the purchase of Banco
finances. Popolare Česká Republika, which
BANKS may have to set aside an addi- The proposals include measures to operates seven branches in the coun-
tional £33bn in capital under propos- stop firms lending large amounts to try, would allow it penetration into
als announced by the City regulator any one borrower, and tougher rules one of the most profitable retail bank-
yesterday to ensure firms are better on securitisation. ing markets in Europe.
able to withstand financial shocks. To increase market confidence in “Households in the Czech Republic
The Financial Services Authority the financial system, banks will also have amongst the most conservative-
(FSA) yesterday issued a consultation have to comply with new disclosure ly managed finances in Europe so
paper on proposals to strengthen standards. there is significant scope in the Czech
banks’ capital reserves in response to FSA director of prudential policy City banks must dig even deeper to boost capital Picture: Micha Theiner/CITY A.M. Republic for a growth in sensible and
the credit crisis. Paul Sharma said the proposals were simple consumer credit and deposit
It includes measures to cover part of an ongoing process to develop products,” said Chris Patrick, partner
potential losses on proprietary trad- new international capital rules. The case for forcing banks to hold been mooted as a way to ensure the at AnaCap.
ing activities and securitisation “This is an important middle step back more capital in the good times banking system is able to absorb fur- According to data firm Raiffeisen
deals, and the FSA estimates this may in work that is being done at an and less capital in the bad times has ther shocks, by smoothing out the ups Research, household debt in the
mean an additional £33bn in international and European level to not yet been made, according to a and downs. These types of controls Czech Republic currently totals just
reserves. Annual ongoing costs of the strengthen the financial system,” he report by an influential think-tank. would make banks retain more capital 23 per cent of GDP, compared to a
proposal would be about £6bn. said. The report from Policy Exchange when returns are high, and then allow Eurozone average of 53 per cent.
Banks, building societies and “The changes reflect the lessons argues that despite the growing clam- them to hold less capital when returns AnaCap bought Cattles Invoice
investment firms have to implement being learned from the credit crisis,” our to introduce “counter-cyclical capi- are low. Finance in a £70m transaction in
changes to their reserves as part of Sharma added. tal controls” to avoid another But economists at Policy Exchange August, having already become the
the European Union’s capital require- The proposals have been put for- boom-and-bust in banking, such meas- believe not enough research has been first private equity firm to acquire a
ments directive. ward for consultation with the indus- ures should be approached with cau- done on what impact these kind of UK incorporated deposit-taking bank
The FSA is also looking at changing try, and all interested parties and tion. measures might have or how they in May with the purchase of
the rules on the type of capital firms stakeholders have until 10 March Counter-cyclical controls have might be implemented. Aldermore, headed by chief executive
can use as part of their reserves, to 2010 to submit their responses. Phillip Monks.

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 14 News CITYA.M. 11 DECEMBER 2009

CITY VIEWS: WILL THE MEASURES IN THE PRE-BUDGET REPORT SAVE LABOUR AT THE NEXT ELECTION? Interviews by Alyssa Wolice and Chris Kay

PAUL DOUGLAS | DUNCAN MONK | PATRIC FOLEY-BRICKLEY | DAVID HAZELL |

LLOYDS BANKING GROUP FIDELITY GRESHAM RBC DEXIA
“I think that the measures outlined in the “City workers won’t say the pre-Budget “Gordon Brown’s tactics aren’t going to “The pre-Budget Report won’t save
government’s pre-Budget Report are a Report has given Labour an edge, win around here. It was the middle class- Labour’s election hopes as people are dis-
case of too little, too late, although grassroots organisations and es who elected Labour in illusioned and there isn’t much to benefit
because Labour has lost unions might be pleased. It and now they have “Joe Public”. Everyone in
too much public support. won’t change the election been stung hardest in the country has recog-
It has its headliner – the outcome as unemploy- the pre-Budget Report. nised they have to make
tax on bank bonuses – ment is still rising and Yesterday’s announce- sacrifices in spending yet
but it’s not going young people’s job ments will have an the government has not
to make a major prospects are adverse effect on done the
impact.” grim.” their chances.” same.”

All change at
AXA ahead of
buying spree
officer Claude Brunet will leave the
▲

INSURANCE
BY OLIVER SHAH
FRENCH insurer AXA has announced
a wide-ranging management shake
up which will see chief financial offi-
cer Denis Duverne move to oversee
group strategy and operations.
The reshuffle is an attempt to
sharpen the firm’s focus after a €2bn
(£1.8bn) rights issue in November left
it with cash on its balance sheet to be
deployed on acquisitions.
From January next year, Gérald
Harlin – who is currently deputy
finance chief – will step up to the role
of chief financial officer. François
Pierson, chief executive of AXA
France, will also take on international
property and casualty insurance,
while AXA Financial chief executive
Christopher Condron will take addi-
tional responsibility for life-and-sav-
ings and health insurance in the US.
Dependant on shareholder
approval at the company’s annual
general meeting in April, AXA will
scrap its structure of separate man-
agement and supervisory boards and
have a single board of directors.
In other changes, chief operating
company and Eugene Teysen, chief
executive of AXA Belgium, will depart
at the end of the year to be replaced
by Emmanuel de Talhouët.
The moves follow the decision by
group chief executive Henri de
Castries to combine his executive role
with the position of supervisory
board chairman to make the compa-
ny more competitive in the aftermath
of the financial crisis.
In October, the firm reported a 2.6
per cent drop in nine-month revenue
to €68.1bn, with life-and-savings rev-
enue down 2.6 per cent and asset
management revenue down 26 per
cent.
ANALYSIS l Axa
€
19 15.88
10 Dec
18
17
16
15
14 Sep 2 Oct 22 Oct 11 Nov 1 Dec

Glaxo to up its C&W appoints

UK investment finance boss
▲

PHARMACEUTICALS
GLAXOSMITHKLINE plans to increase
its investment in Britain following a
government decision to slash corpora-
tion tax for patent-derived income.
Europe’s biggest drugmaker said it
expected to spend some £500m build-
ing a new factory to make biotech
drugs and on expanding an existing
plant to make next-generation respi-
ratory medicines, leading to new
jobs.
The decision is a welcome endorse-
ment for chancellor Alistair Darling,
whose pre-budget report on
Wednesday otherwise offered little
cheer.
TELECOMS
TELECOMS giant Cable & Wireless has
signed up Tim Weller to be the chief
financial officer of its Worldwide
arm, as it puts the finishing touches
to its management team and pre-
pares to demerge from its parent
company next year.
Weller, who is United Utilities’
chief financial officer, will join
Worldwide in May, by which time the
arm is expected to be listed in London
separately from C&W. The business
will have £500m of cash and new
banking facilities by then.
United Utilities said a search for
Weller’s successor was underway.
CITYA.M. 11 DECEMBER 2009
Royal Mail
delivers fall
in revenues
▲
POSTAL SERVICES
BY CHRIS KAY
ROYAL Mail yesterday delivered a
£73m fall in first half revenues to
£4.58bn as the number of items it
delivered plummeted.
Its letters business saw volumes fall
to 72m a day, down 3m on last year, as
the recession caused businesses to
send less mail and the popularity of
email continued to increase.
But the firm still posted a seven per
cent increase in operating profit to
£184m thanks to modernisation and
cost-cutting.
Meanwhile its pension deficit con-
tinued to balloon out of control.
Adam Crozier, Royal Mail’s chief
executive said the firm had come a
long way from seven yeas ago when it
lost £1m a day, but admitted the
future was shaky.
“The outlook remains uncertain as
mail volumes continue to fall in the UK
and around the world and as low inter-
est rates affect sales of financial servic-
es through the Post Office,” he said.
Forex and other leveraged products involve significant risk of loss and may not be suitable for everyone. FOREX.com UK is authorised and regulated by the Financial Services Authority.
News 15
ANALYSIS l Royal Mail – First Half Results Ended 30 September
Broker intern and
father jailed amid
FSA clampdown
on insider trading
▲
COURTS
BY ALYSSA WOLICE
FORMER corporate broker intern
Matthew Uberoi and his father Neel
Uberoi were yesterday sentenced to 12
The four per cent profit increase and 24 months in prison respectively
was attributed to modernisation, with for 12 counts of insider dealing that
automatic machines now sorting 80 netted the pair £110,000.
per cent of post. Cost cutting has also The court adjourned the case until
lead to 5,000 workers leaving Royal 14 December to consider the appropri-
Mail this year. ate level of confiscation and costs in
The group is also struggling to serv- the second insider dealing case
ice its massive pension deficit, now brought by the Financial Services
standing at a staggering £10bn at Authority (FSA). Judge Testar at
least, up from £3.4bn just three years Southwark Crown Court found Neel,
ago. 62, had benefited from the full worth
Royal Mail said that the pension
deficit – which cost it £800m to serv-
OPERATING PROFIT of £288,000 in shares purchased after
Matthew, 24, provided information
ice in its last financial year – was
daunting. “We are exploring with the
+4% obtained during his work experience
with a corporate broking firm in the
trustees ways of addressing this legacy MAIL VOLUMES summer of 2006.
deficit,” it said.
Unions were also shocked by the -8% Matthew, who worked on takeovers
and other price-sensitive deals, used
pension shortfall. “We are equally coded emails on several occasions to
daunted by the scale of the deficit. The
EXTERNAL REVENUE pass inside information to his father in
government must take responsibility
and honour its commitment for the
-1.6% relation to three separate deals.
Passing sentence, Judge Testar said:
deficit,” said Dave Ward, deputy gener- PENSION FUND DEFICIT “This offence is cheating and it is
al secretary of the Communication important for economic and social
Workers Union.
Ignoring devastating strikes in the
+ 294.1% wellbeing to have clean markets. The
public rightly recoils from the idea of
autumn, Ward said workers were people with inside information having
responsible for increasing profits. a licence to print money.”
Your new asset
class awaits, dot com.
It’s your world. Trade it.
 16 News CITYA.M. 11 DECEMBER 2009

BoE keeps asset purchases BEST OF THE BROKERS

ANALYSIS l Signet
p 1,512.00
SIGNET

at £200bn and holds rates 1,700

10 Dec Investec said yesterday that jewellers
Zale’s poor November sales have had an
unwarranted and adverse affect on the
1,600 share price of its competitor, Signet. With
Signet’s shares trading below its 1,725p
1,500 high, and Christmas around the corner,
Most analysts concluded there will expand again.” now is the time to buy, as Signet’s sales tra-
▲

UK ECONOMY
BY JENNY FORSYTH
THE Bank of England left its asset pur-
chase programme intact at £200bn
and held interest rates at 0.5 per cent
yesterday, as widely expected.
Policymakers have indicated they
would not shift policy until at least
February when they will get their
new growth and inflation forecasts
and the scheduled asset purchases
run out.
be no further increase to the scheme The BoE launched its quantitative ditionally better its competitor.
as the economy finally appears to be easing – mainly asset-buying of gov- 1,400
14 Sep 2 Oct 22 Oct 11 Nov 1 Dec
pulling out of the longest recession ernment bonds – in March in an
since World War Two. attempt to boost an economy ravaged ANALYSIS l Fortis 16.63 FORTIS
“It was the only realistic thing they by a global credit crunch. € 10 Dec Evolution Securities moved Fortis to a
could have done. The next big deci- The economy is now showing signs “sell” yesterday, claiming that the current
sion will be taken in February with of picking up again, house prices are 16.5
the new inflation report,” said Brian rising and forward-looking surveys share price of €2.67 does not take into
Hilliard, economic at Societe point to an ongoing recovery in activi- account the legal action being taken
16
Generale. “But cracks are already ty. But policymakers believe it will against the Belgium bank by Deminor, who
appearing in the [Monetary Policy] some time before levels of output get want to recompensate Fortis shareholders
committee and I don’t think they will back to pre-crisis levels. 15.5
over the bank’s alleged misleading infor-
mation from May 2007 to the end of
15
14 Sep 2 Oct 22 Oct 11 Nov 1 Dec September 2008.
ANALYSIS l Home Retail 304.30 HOME RETAIL
p
10 Dec Singer Capital Markets started their cover-
320
age yesterday of Home Retail, but said
there was a lack of visible growth charac-
300 teristics compared to its peers, despite a
strong balance sheet and respected man-
280 agement, to ultimately warrant an initial
“buy” stance. Instead they have set a fair
value stance and are targeting a share
260
14 Sep 2 Oct 22 Oct 11 Nov 1 Dec price of 324p. 
To appear in Best of the Brokers email your research to notes@cityam.com

Housing loan
numbers rise
cent to 66 per cent. But tracker mort-
▲

PROPERTY
BY JENNY FORSYTH
The number of loans approved for
house purchase rose to 55,300 in
October, up nine per cent from
September and 43 per cent higher on
a year ago, the Council of Mortgage
Lenders (CML) said yesterday.
“The amount of buyers has risen
from a trough in January 2009 when
only 23,000 loans were advanced. It is
now up 140 per cent from that low
point,” the industry body said.
The number of loans for remort-
gaging remained weak, however,
unchanged from September’s level of
33,000, one of the weakest readings
since the series began in 2002.
CML said fixed mortgages are con-
tinuing their downward trend from a
high in July, when 80 per cent of all
new loans taken out were fixed. In
October, this had decreased by 14 per
gages are on the rise with 21 per cent
of all new loans being trackers, com-
pared to July’s low of 12 per cent.
The number of first-time buyer
loans was unchanged from
September, but their value dropped
four per cent.
Commenting on the data, CML
director general Michael Coogan said:
“We are still in a two-speed mortgage
market. It appears that low interest
rates for those with substantial
deposits, coupled with this year’s sus-
tained increases in house prices, are
encouraging more people to buy or
move home.
“But the same low interest rates
that are driving house purchase activ-
ity provide little incentive for borrow-
ers to refinance their loans. This,
coupled with ongoing tightness in
lending criteria, continues to hold
back the remortgage market.”

British construction orders fall in third

quarter but private house builds rising
five per cent in the three month peri-
▲

CONSTRUCTION
BY JENNY FORSYTH
BRITISH construction orders fell five
per cent to £8.7bn in the three
months to October compared with
£8.8bn in the previous three months,
official data showed yesterday.
The orders also fell by 19 per cent
compared with the third quarter in
2008, when orders totalled £9bn.
The Office for National Statistics
said private housing orders rose by
od, but were still down one per cent
on the same period in 2008.
Year-on-year for the 12 months to
October, private housing orders were
down 39 per cent.
Meanwhile infrastructure orders
were 16 per cent down for the latest
quarter, but were still 73 per cent up
on the same period last year.
Private commercial orders rose 15
per cent in the three months to
October, the data said.
CITYA.M. 11 DECEMBER 2009 Retail News 17

Money bags for Mulberry as Moss Bros sales lift as

demand for suits jumps
it smashes market forecasts it has used its cash resources to max-

▲
RETAIL
imise margin potential whilst main-
designer accessories has remained surprised by the uplift: “Last year we MENSWEAR retailer Moss Bros yester- taining a strong average cash balance.
▲

RETAIL
BY ASHLEY ARMSTRONG
LUXURY bag and purse maker
Mulberry yesterday registered its
highest share price in two years after
forecasting results “substantially
ahead” of market expectations.
The firm, whose handbags sell for
around £3,000, said total UK sales had
climbed 46 per cent in the 10 weeks
to 5 December. The group’s shares
jumped by 14.52 per cent to 143p.
Despite the downturn, demand for
high and the group said sales of its
Bayswater, Mitzy and new Daria bags
have rocketed .
Pre-tax profits rose 16 per cent to
£1.5m in the six months to 30
September, while revenues jumped
16 per cent to £32.3m.
Wholesale shipments to third par-
ties during the six months to 30
September were down 24 per cent
compared to the prior year.
Chairman and chief executive
Godfrey Davis said even he had been
expected the worst and people were
sitting with heads in hands thinking
it was going to be awful and cut
orders – and they have been left with
empty shelves.”
Davis said there was now a “long
waiting list” for its latest Alexa bag.
Mulberry has benefited from a
shift in consumer trends which has
prompted shoppers to invest in qual-
ity and long-lasting products during
the downturn rather than disposable
fashion.
day reported a sharp turnaround in
sales over the 18-week period to 5
December as like-for-like sales were
up 5.5 per cent with the key
Christmas period still to come.
The retailer, which has 150 stores,
saw like-for-like sales for the 44
weeks to 5 December rise 0.5 per
cent, with total sales up 2.2 per cent
in the period.
Moss Bros, which suffered a 2.6 per
cent decline in like-for-like sales in
the six months to 1 August, said that
Chief executive Brian Brick said:
“We are ever mindful of the uncertain-
ty in trading conditions that lie ahead
but the business is well placed to
thrive in any economic climate.”Brick
also credited much of the retailer’s
successes to an “impressive” perform-
ance in its core area of suits.
Moss Bros said that its current sales
trend showed the retailer was on
course to see a “materially positive
impact on market expectations for
the full year”.

ARE YOU ENCOURAGED BY SPORTS DIRECT’S

Sports Direct SPORTING EFFORTS?
SAM HART | CHARLES STANLEY
INTERVIEWS BY ASHLEY ARMSTRONG
NEWS | IN BRIEF
Tesco to sell iPhone from Monday
Tesco yesterday announced that shop-
pers will be able to take up a contract for

bets on World “ The results are ahead of expectations. It has raised its
full year earnings guidance and current trading remains robust.
the iPhone 3G or the latest iPhone 3GS
from £20 a month. The supermarket
giant said this the lowest monthly con-
tract price in the UK market. Customers
on the 12-month contract – the first
available for the iPhone in the UK – must

Cup success
The outlook for 2010 is favourable: England have got a good draw buy the older iPhone for £222.
for the World Cup which should mean a good run for shirt sales.
On the downside, the negative gross margins are a disappoint- HMV mulls bidding for MAMA

”
Music, books and games retailer HMV is
ment and until OFT and SFO matters are determined, considering its options regarding
they will cast a shadow over the company. MAMA Group, it said yesterday,
fuelling talk it will launch a trump bid
for its live music joint venture partner.
▲

RETAIL KEITH BOWMAN | HARGREAVES LANSDOWN

ment is likely to remain difficult, we MAMA rejected on Wednesday an
BY ASHLEY ARMSTRONG

MIKE Ashley’s Sports Direct retail
empire yesterday nudged up its full-
year earnings forecast after casting a
hopeful glance at next year’s World
Cup.
The retail chain controlled by the
Newcastle United owner said underly-
have motivated colleagues, a fantastic
unrivalled range of products for our
customers, and the World Cup to look
forward to.”
Sports Direct has maintained
robust trading throughout the down-
turn due to its “pile them high, sell
them low” price positioning. But the
“
improved £38.4m bid from its biggest
shareholder, investment group SMS
The results lack a little inspiration – the earnings are Finance.
moving a bit forward, but margins are under pressure and curren- John Lewis sales beat records
cy exchange movements have given some uncertainty, especially John Lewis has revealed that sales in
as they are likely to become more volatile. England has a good the week so far have continued to rise
as shoppers flock to the department
group in the World Cup, which should benefit sales. Sports Direct

ing pre-tax profits had surged by 38.8
per cent to £71.9m in the 26 weeks to
25 October.
But the group’s soaring income
was devastated by currency exchange
movements which dragged reported
pre-tax profits down by 40.8 per cent
share price was knocked from an all
time high recently when it emerged
that the Office of Fair Trading and
Serious Fraud Office were investigat-
ing price-fixing allegations.
ANALYSIS l Sports direct
99.10
”
store in the run-up to Christmas. Sales
has also reduced debt levels, but there remains a slight from Sunday to Wednesday rose 15.2
cloud of uncertainty. per cent year-on-year and 10 per cent
on the same four days last week. The
group said that it had enjoyed its
MATTHEW MCEACHRAN | SINGER CAPITAL biggest ever day online on Monday with
sales an impressive 35 per cent up on

to £57.8m, compared to £97.7m the
year before.
Sports Direct, which owns
London’s Lillywhites store and the
Slazenger, Lonsdale and Dunlop
brands, hiked its earnings forecast for
next year to £155m. The group said it
expects the World Cup to boost sales
“
p
10 Dec last year.
108
106 The back-to-basics approach and flexibility of the busi- Luxury sales boost for shops
104
ness model are continuing to provide Sports Direct with positive High street sales continued to boom this
102 week making it an unprecedented ninth
100
offsets to the economic conditions and recent trading has been week in a row, according to BDO with
98 ahead of expectations as a result. The business appears to be total sales lifting 6.7 per cent. The high-
well-positioned ahead of the World Cup, and the early signs street sales boost was driven by strong

”
96
of replica football shirts. demand for luxury and gifting, with
Chief executive Dave Forsey said:
94 regarding JJB suggest the recovery is not having an sales were up 5.3 per cent. Modest gains
“Although the operating environ-
92
14 Sep 2 Oct 22 Oct 11 Nov 1 Dec adverse knock-on effect at Sports Direct. were made in other divisions.

JJB Sports poaches DSG retail boss to KEITH JONES

INCOMING CHIEF
position of managing director at com-
puter chain PC World. He has also
held the positions of managing direc-

put the group on the road to recovery

tor PC City Europe and managing
EXECUTIVE director of PC City Spain when the Ei
JJB SPORTS System chain of stores was purchased
by the Group. His previous role was as
managing director of the group’s air-
port trading business.
tive was fired by Sir David earlier this leadership in the sports retail sector.” KEITH Jones’s appointment as JJB He has an International MBA from
▲

RETAIL
BY ASHLEY ARMSTRONG
JJB Sports yesterday said it had
poached DSG International’s group
retail director Keith Jones to replace
fired chief executive Chris Ronnie.
The sportswear retailer, which
teetered on the brink of collapse earli-
er this year, has been fighting for sur-
vival amid an intensive restructuring.
Sir David Jones, the man credited
with turning around high street fash-
ion retailer Next, was parachuted into
the struggling chain as executive
chairman in January.
Ronnie, the previous chief execu-
year for gross misconduct after it
emerged that Ronnie had lost control
of his majority stake in the retailer.
Sir David has charged the former
management with dragging the
retailer to its knees. Ronnie is now
the subject of five probes including a
fraud investigation.
Keith Jones’s appointment was seen
as a coup for JJB Sports because of its
ability to attract retail heavy-hitter.
Keith Jones said: “I am pleased to
be joining JJB at such an exciting time
in its development. Now that the
group has resolved its financial issues
it has a real opportunity to assume
On Wednesday, it emerged that
rival JD Sports had dumped its entire
11 per cent stake in the group or
£16.3m – sending the shares 11 per
cent lower.
But the group yesterday said it was
a good sign that its rivals no longer
saw it as an ailing stock and believed
it was stable and would survive.
Sir David will remain as chairman,
but the appointment will allow him
to take a step back.
Sir David has been embroiled in a
public row with rival Sports Direct
owner Mike Ashley regarding a £1.5m
personal loan.
Sports chief executive is another step
forward for the struggling retailer.
Jones, 45, will be charged with
overseeing the group's recovery and
its planned return to profitability by
rolling out the group’s “Serious about
Sport” strategy.
His appointment follows an inten-
sive search by the JJB board in recent
months and follows the completion of
the group’s successful £100m cash
call.
Jones was appointed as group retail
director of DSG International in
January 2009. Before this he held the
Manchester Business School and has
held various senior retail positions
including roles at B&Q and Virgin. He
spent the early part of his career with
Currys and Dixons Stores Group in the
1980s. He is also a member of DSG’s
group executive committee.
Sir David Jones, Chairman of JJB
Sports, said: “I am delighted to wel-
come someone of Keith’s calibre as
chief executive. JJB has been through
a lot in the past year but we have now
reached a stage where we have the
funding, the strategy and the team to
plan for the future.”
 18 News CITYA.M. 11 DECEMBER 2009

Google deals with Twitter threat in the nick of time

they return, feeding its algorithms
with extra searches and refining the
quality of results even further.
Meanwhile, advertisers are happy
because Google targets the right con-
sumers with the right ads, making
them more likely to buy. It’s incredibly
hard for anyone else to compete, espe-
TECHNOLOGY FILE cially when Google has a market share
of around 72 per cent in the US, climb-
DAVID CROW ing to nearer 80 per cent in Europe.
That doesn’t mean Google is perfect,
be evil” motto. That’s why it’s been
caught sleeping at the wheel in recent
years. It failed to spot the massive
explosion in social networking, for
example, leaving the likes of Facebook
and MySpace to carve up the market.
Google hasn’t capitalised on the
growing popularity of so-called real-
time search either. It might have the
best search results, but they’re often
out of date because its spiders take
anything between two and four weeks
Twitter messages to Facebook status
updates and blog posts.
For an instant view, most users now
head to these sites. Want to know
what others think of Jedward being
voted off of X Factor? Twitter can offer
thousands of opinions within seconds.
Commentators such as Sky’s political
editor Adam Boulton use the micro-
messaging site to give a running com-
mentary on events, long before they
can write a blog post, scramble a live
Facebook et al set to capitalise on a
fast-growing area of search. But earlier
this week, Google launched a “latest
results” feature that shows results
drawn from real-time sources like
news and gossip sites, as well as
Twitter, Facebook and MySpace.
Before this development, a search
for “Tiger Woods” would have con-
jured up his official website and
Wikipedia page, but now the “latest
developments” section will tell you the

N
O ONE doubts that Google is the
best search engine, or that it
keeps getting better. As it
processes more and more
search queries, its results improve.
That keeps the customers happy, so
however. Once at the forefront of
developments in the tech industry, it
has turned into the kind of corporate
giant that it so desperately wanted not
to be, what with its massage rooms,
colourful office furniture and “don’t
to crawl the web. Nor is there any way
of ordering results so that the most
recent – instead of the most relevant –
appear at the top. But there is a huge
amount of real-time content being cre-
ated and consumed on the web, from
camera crew or prepare a TV package.
And lazy journalists often use the site
to get instant quotes when they can’t
be bothered to do proper research.
Until recently, this was increasingly
becoming Google’s Achilles heel, with
latest about his infidelities, as well as
offering opinion from across the web.
He numbered 10 alleged mistresses at
the time of writing this column, but if
you do a search on Google, I’m sure
the number will have gone up.

Shareholders
back Quintain
and refinance its debt throughout

▲
PROPERTY
BY ASHLEY ARMSTRONG
QUINTAIN Estates, the property
group yesterday announced that
shareholders had lapped up its
£191m cash call.
The deeply-discounted rights issue
had an acceptance rate just topping
98.4 per cent. The shares had been
offered to shareholders at 49p. The
6.2m shares left unallocated were
placed by the underwriters at a price
of 60p per share.
JP Morgan, HSBC and Barclays
Capital acted as underwriters, with JP
Morgan Cazenove and Lazard as joint
financial advisers.
For the six months to 30
September Quintain posted a pre-tax
profit of £9.5m, compared with a loss
of £51.6m in the same period a year
earlier.
The property developer has been
working to meet its debt covenants
2009 with £49m from refinancing
and initial equity in early October,
the extension of its banking facility in
May and the sale of its 999-year lease
on the O2 centre.
The equity raising is a triumph for
Quintain’s new chairman, William
Rucker, the head of investment bank
Lazard’s London office.
Rucker has long been Quintain’s
financial adviser and is one of, if not
the most highly regarded real estate
investment banker in the UK.
Quintain also enlisted JP Morgan
Cazenove’s managing director Robert
Fowlds to run the cash call.
Fowlds joined the real estate team
as managing director in corporate
finance in 2006.
Previously he had a career as a
high-ranking real estate analyst at
Merrill Lynch and Dresdner
Kleinwort Benson which spanned 20
years.

CITY MOVES | WHO’S SWITCHING JOBS

Edited by Victoria Bates

Hermes Fund Managers

Rebecca Chesworth has been appointed to the
investment management group as a director
and investment specialist in its smaller compa-
nies team. Chesworth joins from Threadneedle,
where she was responsible for investment in
UK equities. She has also previously worked as
a fund manager at Insight Investment, where
she managed pension fund and retail assets.

Goldcorp, as its new chairman.

Eden Financial
The broking and asset management
group has hired David Herbert from
Barclays Wealth as an investment
director in the wealth management
division.
Herbert spent seven years at
Barclays Wealth, formerly Gerrard
Investment Management, where he
led a large London team focused on
managing discretionary multi-asset
mandates. In his new role, he will
report to managing director of wealth
management Curtis Childs.
World Gold Council
The council has appointed Ian Telfer,
chairman of Canadian gold producer
Telfer, who was also previously
president and chief executive of
Goldcorp and its predecessor compa-
ny Wheaton River Minerals, is also a
member of the Canadian Institute of
Chartered Accountants.
He succeeds Greg Wilkins, vice
chairman of Barrick Gold Corporation,
who has held the WGC chairmanship
since March 2008.
United Utilities
The utility company said yesterday
that Tim Weller, its chief financial offi-
cer, has decided to leave the group in
May after almost four years in the
role. Weller is due to join Cable and
Wireless as its new CFO.

To appear in CITYMOVES please email your career updates and

pictures to citymoves@cityam.com
 Markets&Investment 19

LONDON’S TOP 250

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 ................................................275.70* +5.80 314.80 108.66 Croda Intl....................................751.50 +2.00 811.00 428.50 Kesa Electricals ..........................158.50 +3.70 162.00 79.75 Schroders N/V.............................997.00 +18.00 1033.00 533.50
3i Infrastructure ............................99.40* +1.60 105.80 76.50 CSR ............................................383.20 –2.10 524.00 152.00 .LQJÀVKHU ...................................234.00 +3.60 249.10 115.00 Scot. & Sthrn Energy.................1097.00 +3.00 1279.00 357.50
A.B. Foods..................................810.50* +4.50 870.50 603.00 Daily Mail ‘A’ ...............................405.00* –1.50 467.30 205.75 Ladbrokes ..................................135.20 +4.60 213.49 114.60 Scottish Inv Tst ...........................432.50 +2.50 444.90 324.75
Aberdeen Asset Man ...................134.50* +0.10 155.60 92.00 Dana Petroleum ........................ 1160.00 +15.00 1549.00 807.00 Lancashire Hldgs ........................427.20* +1.70 540.00 390.00 Scottish Mortgage.......................514.00 +8.00 527.00 284.00
Admiral..................................... 1118.00 +30.00 1188.00 793.50 Davis Service ..............................386.20 +3.20 438.00 213.75 Land Securities ...........................635.00* –12.00 1051.00 323.25 SEGRO .......................................331.10 –2.20 403.10 250.00
Aegis .......................................... 113.60 –0.50 122.90 61.00 De La Rue ...................................973.50* +25.00 1080.00 808.50 Legal & General ............................77.25 +2.70 94.40 20.90 Serco..........................................516.00 +2.50 546.50 341.50
Aggreko......................................797.50 +3.50 816.50 342.00 Debenhams ..................................84.35 +2.75 99.50 22.00 Liberty International ....................460.40 +4.90 580.00 278.00
Alliance Trust..............................310.80 +2.00 325.20 233.00 Derwent London .......................1258.00 –8.00 1418.00 445.50 Lloyds Banking Gp .......................58.22 +3.53 113.20 21.97 Severn Trent .............................1025.00* +15.00 1236.00 921.00
AMEC .........................................770.00* –3.50 879.50 458.00 Dexion Absolute .........................132.00 +0.40 136.70 69.00 Logica ........................................109.20 –1.30 136.80 57.50 Shaftesbury ................................375.70 –10.90 426.50 184.32
Amlin..........................................365.00 –3.20 415.75 291.00 Diageo ......................................1046.00 +17.00 1079.00 727.00 London Stock Exchange .............713.50* +0.50 949.50 355.75 Shanks Group .............................130.00* +2.50 135.00 36.15
Anglo American ........................2523.00 –7.00 2766.00 906.00 Dimension Data ............................73.25 +1.05 82.80 32.75 Lonmin .....................................1729.00 –4.00 1943.00 574.43 Shire......................................... 1164.00 –4.00 1213.00 764.00
Antofagasta ................................899.00 –2.50 949.50 367.75 Drax ...........................................407.60 –2.20 644.50 393.75 Man ............................................315.90* +11.60 373.60 150.40 SIG .............................................105.90 –0.80 230.00 82.25
Aquarius Platinum ......................341.50 +5.10 392.20 128.62 DSG Intl ........................................34.91 +0.26 39.75 9.59 Marks & Spencer.........................400.00* –0.10 408.30 207.50 Smith & Nephew .........................608.00 +12.50 608.00 401.00
ARM Holdings .............................167.20 –4.50 179.00 77.50 Dunelm .......................................420.00* +10.20 438.40 121.50 Meggitt .......................................239.20 –1.80 267.10 110.50 Smiths ........................................988.50 +11.50 1002.00 646.50
Arriva .........................................460.10 +2.10 641.00 361.00 Easyjet .......................................349.80 –10.10 416.80 246.50 Melrose ......................................172.00 –1.00 198.20 58.25 SOCO Intl .................................1321.00 +13.00 1500.00 885.50
Ashmore .....................................256.50 –4.00 311.20 92.75 Edinburgh Inv Tst........................362.50 +2.00 368.50 283.75 Mercantile IT ...............................841.00 –1.00 964.00 515.50 Spectris ......................................704.50 +8.50 763.50 376.75
Astrazeneca ..............................2796.00 — 2966.00 2126.00 Electrocomponents .....................163.80* +2.10 176.00 113.00 Michael Page Intl.........................360.10 +10.00 375.00 171.25 Spirax-Sarco Eng ...................... 1114.00 +20.00 1195.00 741.00
Atkins(Ws) ..................................607.50 +10.00 747.50 415.00 Eurasian Nat Res ........................875.00 –5.00 965.00 291.00 Micro Focus ................................437.50 +2.50 454.25 256.25 Spirent Comms .............................93.00 +1.00 100.60 32.00
Autonomy Corp ........................1487.00 +27.00 1687.00 867.00 Experian .....................................601.00 +3.00 610.00 370.75 Millen & Copthorne .....................345.50 +3.50 411.90 165.50 Sports Direct Intl ...........................99.10 –6.90 134.00 32.00
Aveva .........................................942.50 –10.50 1083.00 460.00 F&C Comm Prop ...........................82.60* +1.10 90.00 73.50 Misys..........................................205.30 +0.60 238.80 90.75 SSL Intl .......................................716.00 +10.00 756.50 422.75
Aviva ..........................................368.50 –0.30 474.00 160.10 Ferrexpo .....................................185.80* –3.00 228.40 27.00 Mitchells & Butlers ......................260.00 +0.30 310.60 136.50 St James’s Place .........................237.80 –1.80 296.90 142.75
Babcock International .................607.00 –1.00 660.50 381.25 Fidelity European ......................1097.00 +17.00 1182.00 753.00 MITIE ..........................................223.70 +2.20 281.70 170.25
BAE Systems ..............................339.80 +2.30 416.00 294.20 FirstGroup ..................................396.50 +4.60 448.80 192.90 Mondi .........................................328.40 +7.00 361.80 118.25 Stagecoach.................................160.60 +2.80 173.80 102.75
Balfour Beatty .............................248.70 +3.50 346.18 243.40 Foreign & Col Inv Tst...................264.90 +1.70 269.20 179.25 Monks Inv Tst .............................273.50 –1.00 298.60 190.00 Standard Chartered ...................1510.00 +48.00 1696.00 554.00
Barclays .....................................290.75* +12.65 390.00 47.30 Fresnillo .....................................790.00 –3.00 935.00 135.10 Morrison Wm ..............................280.60 +4.30 298.40 233.50 Standard Life ..............................207.50 +8.10 288.00 123.50
Barratt Development ...................110.00 –1.00 193.31 35.08 G4S ............................................250.10 +2.70 258.50 171.90 Mothercare .................................664.50 +4.50 668.00 325.00 Talvivaara Mining ........................373.00 +1.50 428.00 102.75
BBA Aviation ..............................153.10 +1.00 184.20 41.00 GKN ...........................................107.60 –0.30 131.30 36.45 Murray Intl Tst .............................767.50 +11.00 800.00 512.00 Tate & Lyle ..................................417.60* +4.10 481.40 225.75
Beazley.......................................100.50 +0.50 122.00 86.00 GlaxoSmithKline .......................1298.00* +18.00 1323.00 982.00 National Grid ..............................644.50* +2.50 717.00 511.00 Taylor Wimpey ..............................33.01 –1.14 54.90 8.75
Bellway.......................................701.00* –5.00 927.50 515.00 Go-Ahead .................................1245.00 +28.00 1577.00 845.00 Next.......................................... 2011.00* +16.00 2075.00 1009.00 Telecity .......................................350.00 +15.00 360.00 135.00
Berkeley .....................................810.50 –20.00 1071.00 716.50 Great Portland Estates ................269.20* –5.80 298.80 127.11 Northumbrian Water ....................267.00 +1.30 281.90 203.00 Templeton Emrg Mkts .................508.50 +8.70 508.50 235.00
BG ............................................1068.00 –4.00 1180.00 836.50 Greene King................................418.00 +6.40 547.45 279.35 Old Mutual ..................................106.10 +2.10 122.30 30.50 Tesco..........................................419.00* +4.35 437.05 301.40
BHP Billiton ..............................1850.00 –0.50 1969.00 1025.00 Halfords...................................... 411.10 +2.90 442.10 216.75 Pace ...........................................197.60* +2.60 243.80 39.50 Thomas Cook .............................218.50 –0.60 303.50 164.60
BlackRock Mining .......................531.50 –1.00 565.00 211.00 Halma .........................................249.10 +3.60 256.00 140.75 Partygaming ...............................251.30 +2.60 298.50 119.25 Tomkins......................................182.50 +2.50 199.30 99.50
BlueBay ......................................310.00 –2.60 393.00 63.00 Hammerson ................................387.20 +1.90 624.50 212.25 Pearson ......................................862.00 +13.50 876.00 566.50 Travis Perkins .............................771.50 +11.00 888.00 198.63
BP ..............................................573.70 –2.70 599.30 400.00 Hargreaves Lansdown ................273.00 +7.70 299.90 157.00 Pennon .......................................501.00 +2.40 566.50 372.00 TUI Travel ...................................250.50 +0.60 294.75 208.25
Brit Insurance .............................182.10 +2.10 245.00 157.75 Hays .............................................97.30 +1.35 114.00 67.00 Persimmon .................................423.50 +0.60 534.50 223.50 Tullett Prebon .............................301.60 +9.70 436.20 105.25
British Airways ...........................202.30 +2.20 243.30 111.30 Henderson ..................................123.00 +0.20 142.10 49.75 Petrofac ......................................954.50 +4.50 1078.00 298.25
British Amer. Tob ......................1940.00 +18.00 2012.00 1481.00 Heritage Oil.................................430.70 +5.00 630.00 161.00 Petropavlovsk ........................... 1147.00 –48.00 1343.00 275.00 Tullow Oil..................................1252.00 –20.00 1311.00 475.25
British Empire Tst .......................409.10* +3.80 451.80 304.00 Hikma Pharma ............................514.00 +8.00 523.50 288.50 Premier Farnell ...........................173.80 +15.20 174.90 112.50 UK Commercial Prop.....................72.75 –0.55 77.50 50.50
British Land ................................443.60 –2.60 535.26 295.00 Hiscox ........................................303.00 –2.40 364.30 272.50 Premier Foods ..............................33.51 +0.31 47.00 17.50 Ultra Electronics .......................1318.00 +18.00 1379.00 1010.00
Britvic.........................................378.40* +5.50 402.00 204.25 Hochschild Mining ......................301.40 –2.60 366.40 66.75 Premier Oil................................1065.00 +17.00 1431.00 512.78 Unilever ....................................1863.00* +31.00 1899.00 1226.00
Brown(N.) ...................................244.00* –1.20 275.80 183.75 Home Retail ................................304.30* +4.10 336.50 180.40 Provident Financial .....................915.00 –0.50 986.00 736.00 United Utilities ............................493.50 +0.40 642.00 429.00
BSkyB ........................................564.50 +20.50 593.00 398.25 Homeserve ...............................1638.00* +13.00 1752.00 849.50 Prudential ...................................608.50 +1.00 665.00 195.40 Utd Business Media ....................434.50 +4.90 540.00 364.75
BT ..............................................142.70 +2.50 151.00 70.20 HSBC Hldgs ................................713.00* +14.00 766.80 270.37 PZ Cussons ................................255.50 –10.70 274.60 136.50 Vedanta Resources ...................2315.00* –15.00 2510.00 492.75
Bunzl ..........................................647.00* +11.00 679.50 473.00 Hunting ......................................476.40 +3.40 578.50 351.25 Qinetiq........................................165.00 +1.40 179.50 123.00 Victrex ........................................789.50 –3.50 840.50 400.75
Burberry .....................................569.00 +0.50 617.00 194.25 ICAP ...........................................422.70 +5.60 478.30 199.20 Randgold Resources.................4989.00 –3.00 5450.00 2425.00 Vodafone ....................................140.95* +1.15 148.00 111.20
Cable & Wireless.........................142.50* +1.10 170.00 125.10 IG ...............................................363.30 +3.30 373.00 159.25 Reckitt Benckiser ......................3191.00 +63.00 3230.00 2390.00 VT ..............................................539.50* +3.50 606.00 412.75
Cadbury......................................791.50 +6.00 819.50 484.25 Imagination Tech Gp ...................219.10 –4.90 250.00 33.50 Reed Elsevier..............................474.20 +7.40 570.00 403.75 Weir............................................677.00 +8.00 771.00 297.00
Cairn Energy.............................3074.00 –11.00 3197.00 1550.00 IMI ..............................................513.50 –1.00 552.00 214.00 Regus ...........................................86.55 +0.85 120.50 43.00 Wetherspoon(J.D.) ......................444.00 +6.70 551.00 270.00
Caledonia Invs ..........................1575.00* +18.00 1759.00 1081.00 Imperial Tobacco.......................1882.00 –5.00 1983.00 1412.00 Rentokil Initial ...............................98.00 +1.40 119.70 33.00 WH Smith ...................................521.50 +6.50 551.00 306.75
Capita .........................................722.00 +9.00 791.00 608.00 Inchcape.......................................27.00 –1.55 36.74 5.82 Resolution ....................................79.25 +0.95 112.00 77.45 Whitbread .................................1290.00* +1.00 1358.00 686.50
Carillion ......................................295.30 +6.40 319.60 192.00 Informa .......................................288.30 +3.40 339.10 216.00 Rexam ........................................280.50 +6.30 328.55 188.89 William Hill..................................186.30 –0.40 243.25 136.45
Carnival ....................................2085.00 +6.00 2218.00 1224.00 Inmarsat .....................................654.50 +5.50 682.00 378.25 Rightmove ..................................474.00 — 610.50 156.25
Carpetright .................................907.00 +16.00 970.00 311.00 Intercontl Hotels .........................890.50 +7.00 899.00 433.75 Rio Tinto ...................................3095.00 –45.00 3354.50 1102.02 Witan Inv Tst ...............................422.50 +1.70 433.70 276.50
Carphone Warehouse..................185.90* –0.10 216.10 84.75 Intermediate Capital ....................274.20* +0.20 332.00 79.71 RIT Capital Partners ....................977.50 +17.50 1030.00 715.00 Wolseley ...................................1205.00 +16.00 1570.00 907.03
Catlin..........................................320.80 +0.80 401.79 270.00 Intertek ..................................... 1197.00 +13.00 1368.00 666.00 Rolls Royce ................................481.80* +2.20 504.50 252.50 Wood Group (John).....................284.90 –2.00 354.90 168.00
Centrica ......................................261.40 +3.60 288.75 212.50 Intl Personal Fin..........................201.80 +1.50 239.80 58.25 Rotork ...................................... 1173.00 +18.00 1267.00 667.50 WPP ...........................................590.00 +3.50 604.50 349.75
Charter Intl..................................707.00 +2.00 778.50 301.00 Intl Power ...................................287.20 +2.90 308.80 190.60 Royal Bank Of Scot .......................31.34 +1.02 71.20 10.00 Xstrata ......................................1032.00 –22.00 1175.00 288.75
Chemring..................................2771.00 +49.00 2917.00 1794.00 Invensys .....................................281.60* –2.60 314.60 136.00 Royal Dutch Shell A ..................1823.00* –9.00 1944.00 1362.00 Yell Group.....................................41.00 +0.04 86.00 11.75
Close Bros..................................702.00 +7.00 806.50 384.25 Investec ......................................417.70* +4.50 487.20 164.75 Royal Dutch Shell B ..................1755.00* –8.00 1897.00 1315.00
Cobham ......................................245.10* +0.80 246.50 163.90 ITV................................................51.65 –0.20 58.65 16.50 RSA Insurance ............................ 117.20 +2.40 152.90 113.10 LONDON TOP 250 BY MARKET CAPITALISATION
COLT Telecom ............................125.60 +1.00 138.00 49.00 Jardine Lloyd Thompson.............452.50 –3.00 527.00 387.75 SABMiller .................................1787.00* +12.00 1853.00 906.00
Compass ....................................449.40 +1.40 452.50 275.00 Johnson Matthey ......................1483.00* +9.00 1641.00 856.50 Sage ...........................................232.10 +4.60 239.20 157.70 * Ex-Dividend † Suspended
Connaught..................................374.90 –3.80 448.30 292.50 JPMorgan Emerg Mkts ................471.00 +4.00 486.00 265.00 Sainsbury(J) ...............................318.60* +1.30 373.00 280.25
Cookson .....................................392.80 +0.10 481.40 202.75 Kazakhmys ...............................1226.00 +2.00 1345.00 187.30 Schroders .................................1210.00 +36.00 1274.00 628.00 www.interactivedata.com

Banks push the FTSE up after US upbeat on jobs

recent falls on Dubai concerns and trade markets
Banks added the most points to the McGraw-Hill, up 1.6 per cent, and cent, at 10,405.83. The Standard &
THELONDON index after the lack of a mooted
windfall tax in finance minister
Reed Elsevier , upgraded by Deutsche
Bank on Wednesday, also adding 1.6 THENEW YORK Poor’s 500 Index ended up 6.40
points, or 0.58 per cent, at 1,102.35.

REPORT Alistair Darling’s pre-budget report,

and with Standard Chartered’s
upbeat trading update on Wednesday
per cent.
BT Group rose 1.8 per cent as
Morgan Stanley upped its target price
REPORT The Nasdaq Composite Index closed
up 7.13 points, or 0.33 per cent, at
2,190.86.
continuing to lift sentiment. for the firm to 190 pence from 175 The consumer-discretionary sector

S U
trong banks pushed Britain’s Lloyds Banking Group grabbed the pence and kept its “overweight” rat- S stocks gained yesterday as index was the top performer on the
top share index 0.8 per cent top spot on the blue-chip leader ing. signs of improving trends in S&P, led by gains in Walt Disney, up
higher by the close last night, board, rising 6.5 per cent, with Miners were weak against a back- the job market and a decline in 3.1 per cent at $31.30. The index rose
rebounding from recent falls Barclays, Royal Bank of Scotland, drop of mixed metals prices, with Rio the US October trade deficit 1.4 per cent.
sparked by Dubai debt concerns, on HSBC, and Standard Chartered Tinto, Xstrata, Lonmin and reassured investors the economy was Trading was thin as investors
continuing relief after Wednesday’s adding 2 to 4.6 per cent. Antofagasta shedding 0.2 to 2.1 per on a steady growth path. looked to preserve gains as the end of
pre-Budget Report. The Bank of England left its asset cent. The Labor Department said weekly the year approaches and refrained
The FTSE 100 closed up 40.48 purchase programme intact at Kazakhmys bucked the trend, put- jobless claims rose more than expect- from making big bets ahead of the US
points at 5,244.37, having ended at its £200bn and held interest rates at 0.5 ting on 0.2 per cent. The Kazakh cop- ed last week, but investors took com- Federal Reserve interest rate meeting
lowest closing level in more than a per cent yesterday. per producer said it will double the fort in the four-week average, a better next week.
week on Wednesday. British banks have not struck a deal stake it is selling in the country’s view of underlying trends, which fell Coca-Cola shares gained 1.3 per
The index is up about 52 per cent to reschedule Dubai World’s debts, biggest power plant to 50 per cent for to the lowest since September last cent to $58.58 as one of the top boosts
from a six-year low hit in March, industry sources said yesterday, deny- an increased price of $681m. year. to the Dow after the soft-drink maker
though is still 3.2 per cent below its ing a newspaper report that the A slightly weaker crude price A separate report showed the trade resolved a dispute with Costco that
level of mid-September 2008, before lenders had reached an agreement impacted energy stocks. deficit shrank 7.6 per cent as a weak led the large retailer to halt orders of
the collapse of Lehman Brothers. with the troubled state conglomer- dollar helped boost US exports of Coke products
“There hasn’t been any particular ate. ANALYSIS l FTSE100 5,244.37 goods and services to their highest in Time Warner shares also rose 4.2
good newsflow that would really Broker upgrades helped selected 5,400 10 Dec nearly a year. per cent to $30.45 after completing its
explain a fundamental reason for the firms push higher. BSkyB climbed 3.8 “The jobless claims data certainly spinoff of AOL, which shed 0.6 per
market being up,” said Angus per cent after Cazenove raised its rat- 5,300 got the market moving up in the cent to $23.52.
Campbell, head of sales at Capital ing for the satellite broadcaster to start, giving a lift to retail and con- On the Nasdaq, BlackBerry maker
Spreads. “outperform” from “in-line” to reflect 5,200 sumer (stocks), which really set the Research in Motion rose 2.6 per cent
“There were no surprises from the its strong growth prospects together direction of the market today,” said to $65.80 and Amazon.com closed up
Bank of England and we’ve been trad- with the potential for margin 5,100 Michael James, senior trader at 3 per cent to $135.38, rebounding
ing sideways for quite a while anyway. improvement. Wedbush Morgan, a regional invest- from the previous session.
5,000
I think the bounce is more technical Other media issues were also in ment bank. Ciena shares fell 11.4 per cent to
than anything else,” he said. demand, with Pearson, boosted again 4,900 The Dow Jones industrial average $11.72 after it posted a wider-than-
by recent good news from US peer 14 Sep 2 Oct 22 Nov 11 Nov 1 Dec .DJI was up 68.78 points, or 0.67 per expected quarterly loss.
 Living
20
City buyers rushing to beat their
colleagues to property bargains
London’s property market looks healthy for 2010, and
the early bird will catch the worm, writes Jessie Hewitson
I
F you are one of those lucky people
who still has money in their pocket
after Alistair Darling’s best efforts,
then you’re probably itching to invest
it this very minute. Property has tradition-
ally been a favourite place for people to
put bonus money. But is this wise this
year? With many forecasters suggesting
next year will bring mild to moderate
price falls, might it be best to wait?
Miles Shipside, commercial director for
property website Rightmove, advises buy-
ers not to rush into anything early next
year – he thinks the smartest move might
be to sit back and wait until the summer.
“Historically, there is always a lack of activ-
ity around elections, and next year the
general election is followed by the World
Cup – which also heralds a quieter proper-
ty market – and on top of that come the
summer months, always a slow time for
house transactions. All of this means a
real window of opportunity for those look-
ing to purchase, as it’s always good to be
actively buying when others aren’t.”
When deciding on the best time to buy,
buying agent Jo Eccles believes it’s wise
not to place too much faith in the indices,
which always disagree wildly and were
hopelessly wrong in predicting the mar-
ket this year. If you’re buying for yourself
then you need to forget about trying to
play the market, and simply buy the home
that’s right for you when it comes avail-
able, she says – making sure you pay a
good price for it, of course. If the property
is a buy-to-let investment, though, then
Eccles’ advise is to forget about what the
sales market is doing, and concentrate on
the rental one instead.
“If I were purchasing for buy-to-let, I
would focus on completing when the
rental market is busy, and the two busiest
times for that are mid- to late-January, and
| Market View
September,” she says. “As a rule of thumb,
it will take around two months from hav-
ing an offer accepted and completion, so
anyone looking to rent out their property
in September should be looking around
March or June next year.”
However, fellow buying agent and prop-
erty commentator Henry Pryor suggests
that buying sooner rather than later next
year is the best thing to do.
“In terms of buying next year, I think
the early bird will get the worm,” he says.
“There will be fewer buyers at the begin-
ning of the year compared with the end of
the year – traditionally the market doesn’t
get going until about spring – so if you are
around before then there is much more
opportunity to drive a bargain.”
And if you’re planning on buying
“prime” – that is, in central London and
other ultra-desirable areas of the capital
such as Notting Hill – remember that
house-price-growth in these areas is a com-
pletely different animal compared with
the rest of the country. As Robert Bailey,
who finds homes for the rich and famous,
points out, when average UK house prices
are forecasted they may bear absolutely no
relevance to the parts of London he covers
– which, thanks to bonus money and for-
eign investment, are likely to avoid the
pain that is being predicted for most of the
country in 2010.
Like many others, he believes that prop-
erty in prime London will sail through
next year, experiencing only gains, so if
you are planning on buying in London’s
central postcodes, waiting really doesn’t
make so much sense. “I don’t think there
will be a price dip in the prime central
market at all – I just see prices continuing
to rise,” says Bailey. “So on that basis, I’d
spend my bonus as soon as possible. The
problem is there is a dreadful shortage of
To buy or not to buy?
Picture: Jason
Alden/CITY A.M.
decent properties, so if you do find the
right property for you – grab it.”
“While supply remains low, I can’t see
prices falling next year either,” adds Jo
Eccles. “There are lots of different types of
buyers looking for property in London –
the overseas buyer, first-time buyers
returning to the market and people trad-
ing up – and there really aren’t that many
properties available, which is pushing
prices up.”
GOODBYE HIPS
One event on the horizon that could affect
supply is if the Tories are elected, and fol-
low through on their promise to scrap
Home Information Packs (Hips). This may
well see more homes coming on to the
market, as homeowners take the opportu-
nity to dip their toes in the market with-
out financially committing themselves.
Not only has the expense of a Hip put off
some of the more speculative buyers from
putting their homes up for sale, but also
there is a definite hassle factor, involving
some sellers having to find their lease and
answer detailed questions on their proper-
ty’s history. “Whether the increase in
properties on the market if this happens
will be enough to see prices fall is another
matter,” says Eccles.
Many are less nervous about 2010 price
falls than about colleagues snatching up
the best properties. A number of Eccles’
clients buying central London property
aim to swoop before their colleagues col-
lect their bonuses early next year. “Some
are putting down 25 per cent deposits now
and getting flexible mortgages, which
allow them to pay off some or all of it
when they actually get their bonus,” she
says. “It’s dog eat dog out there.”
If the Tories get in and abolish Hips, this could
tempt people to put property on the market
speculatively, without committing any money
CITYA.M. 11 DECEMBER 2009
?
Q&A: BUYING
Camilla Dell
MANAGING PARTNER
AT BLACK BRICK
Dear Camilla, I want to pur-
Q. chase a property next year for
investment but I am reading
conflicting forecasts about the
London property market. How can I
feel confident with what the market
is going to do next year?
A.
There is certainly a great deal of
disparity among forecasters and
there is no doubt that the predic-
tions are very confusing at the moment.
Some are expecting a 10 per cent rise in
the housing market while others are
expecting a 10 per cent fall in prices.
We at BlackBrick – although we don’t
make forecasts ourselves – would certain-
ly side with the more cautious of the fore-
casts, given the uncertainties surrounding
next year such as unemployment and of
course the general election.
But while you might be confused about
what is going to happen to the property
market next year, if you are going to
invest in the London property market, you
should have a long-term view rather than
focusing on the near-term. If you think
that the capital will continue to attract
the global wealthy and remain a place
where people will want to buy property,
then a long-term investment can still be
justified.
And not only are prices still around 18
per cent below their peak on average,
rents have now stabilised, which is good
news for the buy-to-let market.
Parts of north-west London such as
Hampstead, Regent’s Park at St John’s
Wood have seen rents increase by 3.6 per
cent this year.
2010 is certainly not going to be a
good year generally and I think it is
going to be very painful. But it may be
possible for you to pick up some deals or
seize on buying opportunities in the
course of the year.
Q.
Dear Camilla, I’m in the process
of looking for a property and
have been considering a new-
build either to live in myself or rent out.
Is this a good idea or should I look for a
more traditional property?
A.
You do have to be really careful
with new-build properties but
that doesn’t mean they don’t have
their advantages. Whether you are living
in it or renting the property out, there are
likely to be fewer problems and less
chance of things going wrong. You can
also have a staged payments arrange-
ment, which is attractive.
Nonetheless, there are a number of
things you should consider when buying
new-builds. Firstly, check the developer –
does it have a good track record and expe-
rience?
It’s not just who you buy from, though,
it’s also what you buy. It is usually better
to choose a smaller, more boutique devel-
opment of about 10-20 units, regardless
of whether you are buying for personal or
investment purposes.
Try to avoid new-builds in large com-
plexes where the flats are all the same.
With nothing unique, rents get driven
down and you will be competing with lots
of other landlords.
And double check what the plans are
for the site – you don’t want to find that
another block springs up right in front of
your window.
Camilla Dell is the managing partner at
search and acquisition consultancy Black
Brick. www.black-brick.com.
CITYA.M. 11 DECEMBER 2009 Living | The Knowledge 21

FOCUS ON: BLACKHEATH BY ALYSSA WOLICE

PARK VISTA, SE10 HUNTS CLOSE, SE3

Price: £1.495m Price: £750,000
This stunning four-bedroom Georgian property This is a large semi-detached house
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 Lifestyle WHERE THE WILD 23
THINGS ARE
| Gifts for him NEW FILM REVIEWED
ON PAGE26

What to get the man in your life

Timothy Barber picks out the grooming products, gadgets and
bottles that gents will want to find under the Christmas tree

GROOMING 2

9
8

1 Cuba travel cologne collection – £65, www.czechandspeake.com. 2 Acqua di Parma Colonia

with vapouriser (notes: citrus, lavender, rose) – £215, www.harrods.com. 3 Leather wash-
bag – £99, www.aspinaloflondon.com. 4 Shaving set and stand – £295, www.czechand-
speake.com. 5 Babssu and Bergamot shaving set – £50, www.gentlemenstonic.co.uk. 6 Hugo
Man Limited Edition (notes: basil, cloves, jasmin) – £95 (150ml), www.selfridges.com. 7 Braun
electric shaver – £178, www.braun.com. 8 Prada Infusion d’Homme soap – £22.50,
www.prada.com. 9 Dunhill 51.3n (notes: rhubarb, cedar leaf, vanilla) – £32, www.harrods.com
24 Lifestyle | Gifts for Him CITYA.M. 11 DECEMBER 2009

GADGETS & GAMES

1

@
@ www.cityam.com
1 Acer Aspire Predator gaming PC – £2,499, www.harrods.com.
2 Powermat charger – £70, www.powermat.com. 3 Harmon Kardon
speakers – £749.99, www.harmonkardon.com . 4 Sony Pocket Edition
Reader – £149, www.sony.com. 5 Vertu V-Collection bluetooth headset,
£539 – www.vertu.com. 6 Denon AHD7000 headphones, £900,
www.denon.com. 7 Leather Rubik’s Cube – £175, www.william-
andson.com. 8 Dominos set – £153, www.thomaslyte.com
CITYA.M. 11 DECEMBER 2009 Lifestyle | Gifts for Him 25

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 26 Lifestyle | Reviews CITYA.M. 11 DECEMBER 2009

Choose your
pantos wisely:
London’s best
family shows
There’s something for everyone this year,
from wizards to Dickens, says Zoe Strimpel
Spike Jonze’s Where the Wild Things Are is a brilliantly touching adaptation.

THE GRUFFALO theatre in Kingston is motoring once

A lovely adaptation by Tall Stories of the
book by Julia Donaldson. Kids will enjoy
following the quick-thinking mouse into
the deep, dark wood and discovering
what happens when he comes face to
face with wheeler-dealer Fox, an eccen-
again with its terrific adaptation of
Robert Louis Stevenson’s Treasure Island.
An array of well-known and colourful
characters including Long John Silver,
Captain Billy Bones and Jim Hawkins
swashbuckle their way through a
A beautiful foray
tric old Owl, a maraca-shaking Snake,
and, of course, the Gruffalo. Until 10 Jan,
tickets £11.50-£14.50. Apollo Theatre,
Shaftesbury Avenue, W1D 7EZ, to book call
0844 412 4658.

INTO THE HOODS

This hip hop take
on Stephen
Sondheim’s
musical Into the
Woods takes us
to Ruff Endz
Estate in London, home of DJ
Spinderella, who is dating the two-
timing “playa” Prince, and their mot-
ley gaggle of mates. When the landlord
offers an enticing offer in return for their
finding gifts for his daughter’s birthday,
an intoxicating melange of fairy tales,
groovy tunes and dance moves ensues.
The ultimate modern stage show for
teens. Until 10 Jan, tickets £15-£27.50. Queen
Elizabeth Hall, Belvedere
Road, SE1 8XX, book at
www.southbankcentre.co.uk.
POTTED POTTER:
AN UNAUTHORISED HARRY EXPERIENCE
Potter fans shouldn’t miss this hilarious
show from comics Daniel Clarkson and
Jefferson Turner, which features all the
favourite characters, a special appearance
from a very frightening fire-breathing
dragon, and a game of Quidditch involv-
ing the audience. Thanks to endless cos-
tumes, brilliant songs, ridiculous props,
and a generous helping of Hogwarts
magic, Clarkson and Turner go out of
their way to show you what all that Potter
fuss is really about. A sell-out in
Edinburgh, you’d best hurry to book. Until
2 Jan, tickets £15-£20. Trafalgar Studios, 14
Whitehall, SW1A 2DY, to book call 0870 060
6632.
JACK AND THE BEANSTALK
And what would Christmas be without a
classic panto? Another winner at the
Lyric, Steve Marmion’s fun-filled rendi-
tion of this old favourite can’t fail to
delight. Get ready to boo the baddies,
cheer the hero, and sing along and dou-
ble-up with laughter at Hammersmith’s
new panto dame. A community and
entertainment extravagan-
za featuring local talent,
this is unmissable for
Hammersmith locals.
Until 9 Jan, tickets £10-£25
mins. To book, call 0871 22
117 20.
TREASURE ISLAND
After last year’s acclaimed A
Christmas Carol, The Rose
world of ship-wrecks, pirates
and magical islands in this
colourful, spectacular show. Until
9 Jan, tickets £9-£29.5. The Rose, 24-26
High St, Kingston, KT1 1HL, book on
0871 230 1552.
A CHRISTMAS CAROL
Presented by a company of
extraordinary performers,
including Gareth Hale as
Scrooge, this feel-good musi-
cal version of Charles
Dickens’ ever-enchanting
morality tale is already delight-
ing young and old. Susie
McKenna and Steve Edis have
done the adaptation with producers
Tiny Tim Productions, and the Art
Theatre’s new Victorian foyer cre-
ates extra atmosphere. Baaa
Humbug. Until 10 Jan, tickets £15-
£37.50. Arts Theatre, 6-7 Great
Newport Street, WC2H 7JB.
To book, call 0207 836 8531.
Films
NATIVITY!
In the School of Rock style of film, this
festive comedy has Martin Freeman as
lovelorn teacher Mr Maddens, a former
am-dram star whose girlfriend (Ashley
Jensen) dumped him over Christmas five
years ago. So Yuletide cheer doesn’t come
naturally to him, but he’s forced to drum
some up when the headmistress (Pam
Ferris) chooses him to direct the Nativity
play. Surefire fun for all the family.
Playing at all major cinemas.
A CHRISTMAS CAROL
Robert Zemeckis’s high-octane animated
version of Dickens’ seasonal morality stars
Jim Carrey in the lead role, along with Bob
Hoskins, Colin Firth and Robin Wright
Penn. Carrey’s voice is mesmeric as he
brings his slickly expressive pathos to the
part of Scrooge, and there’s plenty of spe-
cial effects to add
interest. Playing
at all major cine-
mas.
into a child’s mind
Spike Jonze has made a moving
and profound film that is perfect
for all ages, says Timothy Barber
WHERE THE WILD
THINGS ARE
Cert: 12A
hhhhi
FIRST published in 1963, Maurice
Sendak’s picture book, about a little boy
who escapes from his home frustrations
into an imaginative world populated by
fantastical monsters, became a beloved
classic. It’s taken 46 years for it to make
the leap to the big screen, but the wait
has been worth it. Resisting the obvious
impulse to animate the story, Spike
Jonze’s adaptation is one of the most
beautiful, profound and affecting chil-
dren’s films to have appeared in years.
OUT THIS WEEKEND
PREVIEWS
FILM
CARRIERS Yet another end-of-the-world thriller, this
time about a viral pandemic sweeping the world. Chris
Pine and Piper Perabo are among the beautiful young
people making you root for the virus.
THE STEPFATHER Remake of the less-than-classic 80s
horror film, with Dylan Walsh (of Nip/Tuck fame) as the
stepdad with skeletons in the closet, and the basement,
and the car boot...
THE RED SHOES Re-release of one of the greatest ever
British movies, by film-makers Powell and Pressburger.
There’s nothing quite like it, but the
Wizard of Oz is perhaps its spiritual fore-
runner.
Max Records plays Max, the little boy
who throws a tantrum after an argument
with his mother, and is sent to his room
without his supper. Cloaking himself in
his treasured wolf’s costume, Max lets his
imagination take him on a journey across
the sea to the land of the Wild Things.
These woolly monsters, beautifully made
by the Jim Henson Workshop and voiced
by actors including James Gandolfini and
Forest Whitaker, turn out to be just as dys-
functional as his real family, as Max
becomes their king and joins their
adventures.
A decade after his wildly ambitious
debut, Being John Malkovich, Jonze has
created something no less audacious and
transporting. Co-scripted by the novelist
Dave Eggers, the film may stray from the
book by expanding its narrative, but
absolutely shares its spirit. Stunningly
filmed (mostly with hand-held cameras)
and utterly beguiling, it is a fantasy that
beautifully sums up the truth of what
goes on in a child’s mind. An enthralling
tour de force.
MUSIC
ALICIA KEYS The pianist, singer, composer, actress and
generally rather talented soul diva releases her fourth
studio album, The Element of Freedom.
PAUL MCCARTNEY Mr Fab Macca himself raises his
thumbs aloft to the Big Apple in this live recording and
DVD of his recent concert tour, entitled Good Evening
New York City.
BADLY DRAWN BOY Former Mercury Music Prize-winner
Damon Gough releases his first album since 2006, titled
Is There Nothing We Can Do?
CITYA.M. 11 DECEMBER 2009 Lifestyle | TV& Games 27

BBC1 BBC2 ITV1 CHANNEL4 FIVE

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show; BBC News
8pm EastEnders
8.30pm A Question of Sport
9pm Have I Got News for You
9.30pm CHOICE Live at the Apollo
10pm BBC News
10.25pm Regional News
10.35pm Friday Night with
Jonathan Ross
11.35pm The National Lottery
EuroMillions Draw
11.45pm FILM Perfect
Creature; Weatherview
1.20am Sign Zone: My Supermodel
Baby 2.05am Sign Zone: Black
Widow Granny? 3am Sign Zone:
School of Saatchi 4am-6am News
6pm Celebrity Eggheads
6.30pm Strictly Come Dancing
– It Takes Two
7pm Live Snooker: UK
Championship: The concluding
session of the first semi-final.
8pm We Are Family
9pm Victorian Farm Christmas:
New series. The farmers
celebrate the festive season in
Victorian style.
10pm Beautiful People
10.30pm Newsnight
11pm Newsnight; Weather
11.35pm Snooker: UK
Championship
12.25am Medium
1.10am Medium 1.50am FILM The
Whisperers 1967. 3.35am-6am Close
6pm London Tonight
6.30pm ITV News
7pm Emmerdale
7.30pm Coronation Street
8pm Christmas for a Pound:
Tonight
8.30pm Coronation Street
9pm CHOICE Mister Eleven:
New series. Two-part romantic
comedy, starring Michelle Ryan
and Sean Maguire.
10pm ITV News at Ten
10.30pm London News
10.35pm FILM The Island
1.05am Nightwatch with Steve
Scott: Crime; ITV News
Headlines
2am FILM Door to Door 1985.
3.30am-5.30am ITV Nightscreen
6pm The Simpsons
6.30pm Hollyoaks
6pm Home and Away
6.25pm Live from Studio Five:
TV PICK
7pm Channel 4 News Topical reports.
7.30pm The Boy Who Was 7.30pm The What in the
Born a Girl World? Quiz; Five News Update
7.55pm 3 Minute Wonder: 8pm CHOICE Axe Men: Men’s
Monkey Business lives are put at risk by falling
8pm Jamie at Home logs; Five News at 9
8.30pm Jamie at Home 9pm NCIS: A murder is shown
9pm David Blaine: Magic Man live online.
10pm Comedy Showcase 10.30pm 10pm Law & Order: Special LIVE AT THE APOLLO
The IT Crowd 11.05pm True Blood BBC1, 9.30PM
12.15am 4Music: Mercury Prize
Victims Unit
11pm Law & Order: Special Bafta-nominated actor Rob Brydon
Sessions: Mr Hudson 12.30am Little
Victims Unit hosts the comedy show from the
Noise Sessions 2009 12.55am FILM
Bad News Bears 2005. 2.55am 3 12am SuperCasino Hammersmith Apollo, and welcomes
Minute Wonder 3am Studio 60 on 4am Big Ideas That Changed the Sarah Millican and Jason Byrne.
the Sunset Strip 3.45am Freesports World 4.40am HouseBusters
on 4 4.15am Beach Volleyball 5.10am Neighbours 5.35am-6am
5.05am-5.55am St Elsewhere Home and Away

SKY SPORTS 1 12.30am WWE: Late Night – Investigation 12am Criminal 12.25am Scrubs 1.20am 3am Hitler’s Henchmen 3.50am
SATELLITE & CABLE

7pm Premier League Preview
7.30pm FIFA Futbol Mundial
8pm Live Friday Fight Night
11pm Premier League Preview
11.30pm World Sport 12am
Football League Weekend 1am
Premier League Preview
1.30am Friday Fight Night
4.30am Football League
Weekend 5.30am-6am
Premier League Preview
SKY SPORTS 2
6pm NFL 7.30pm Live
European Cup Rugby Union
10pm Football League Weekend
11pm NFL: Total Access 12am
Tight Lines 1am European Cup
Rugby Union 3.30am NFL:
Total Access 4.30am
Transworld Sport 5.30am-
6am Powder Adventures
SKY SPORTS 3
7pm Tight Lines 8pm Golf
Night 10.30pm WWE: Late
Night – Smackdown
Bottom Line 1.30am WWE
Special 2.30am Golf Night
5am-6am Tight Lines
BRITISH EUROSPORT
7pm Live Snooker: UK
Championship 10pm Eurogoals
Weekend 10.15pm Freeride
Spirit Show 10.30pm-
12.30am Curling
ESPN
7pm Goal! 7.30pm Live
Bundesliga 9.30pm Total
Italian Football 10pm UFC
Unleashed 11pm Ultimate
Fighting Championship 12am
UFC All Access 12.30am NBA
Action 1am Live NBA
Basketball 3.30am UFC
Unleashed 4.30am-5am Total
Italian Football
LIVING
7pm Ghost Whisperer 8pm
Criminal Minds 9pm Medium
10pm CSI: Crime Scene
Minds 1am CSI: Crime Scene
Investigation 2am Charmed
3am Wonder Woman 3.50am
60 Minute Makeover 4.40am
10 Years Younger US 5.30am-
6am Home Shopping
BBC THREE
7pm Top Gear 8pm Merlin
8.45pm Merlin Secrets and
Magic 9pm Spooks 10pm
EastEnders 10.30pm Don’t Tell
the Bride 11.35pm Family Guy
12.20am Russell Howard’s
Good News 1.15am Little
Britain USA 2.10am Mouth to
Mouth 3.10am Don’t Tell the
Bride 4.10am Russell Howard’s
Good News 5.10am-5.25am
Greek Uncovered
E4
7pm Hollyoaks 7.30pm My
Name Is Earl 8pm Friends 9pm
Supernanny 10pm Wife Swap
11.05pm Alan Carr: Chatty Man
11.55pm My Name Is Earl
Supernanny 2.15am Wife Mark Williams on the Rails
Swap 3.10am Alan Carr: 4.40am Mega Builders 5.30am-
Chatty Man 3.50am Reaper 6am How Does That Work?
4.35am Joan of Arcadia
5.15am-6am Switched DISCOVERY HOME &
HEALTH MISTER ELEVEN
HISTORY 7pm A Baby Story 8pm Jon and ITV1, 9.00PM
7pm Tutankhamun: Secrets of Kate Plus 8 9pm Little People, New series. A number-obsessed maths
the Boy King 8pm Cities of the Big World 10pm 18 Kids and teacher is convinced she is doing the
Underworld 9pm The World at Counting 11pm Yorkhill 12am right thing by marrying lover number
War 11pm The Last Days of Little People, Big World 1am 11. Comedy, starring Michelle Ryan.
World War Two 1am Yorkhill 3am Jon and Kate Plus
Tutankhamun: Secrets of the 8 4am Bringing Home Baby
Boy King 2am Extreme Trains 5am-6am Home Birth Diaries
3am Weird Weapons: The
Allies 4am-5am America’s SKY1
Toughest Jobs 7pm The Simpsons 8pm
Angela and Friends 9pm Justin
DISCOVERY Lee Collins: The Wrestler 10pm
7pm Mythbusters 8pm How FILM Bad Boys 1995. 12.15am
Do They Do It? 8.30pm How Road Wars 1.15am Ross Kemp
It’s Made 9pm World in on Gangs 2.10am Road Wars AXE MEN
Flames 10pm Artillery: The 2.35am UK Border Force FIVE, 8.00PM
Gods of War 11pm American 3.30am X-Weighted 4.20am James and his father manage to pull
Chopper 12am World in So You Think You’re Royal? the ‘Moby Dick’ log onto dry land, and
Flames 1am Artillery: The Gods 5.10am-6am Are You Smarter the Rygaard crew struggles to fell trees
of War 2am Time Team Than a 10 Year Old? surrounded by dense undergrowth.

COFFEE BREAK
Copyright Puzzler Media Ltd, www.puzzler.com
10 16 19 8 4 30 29
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2 3 4 5 6

SUDOKU KAKURO 23

7 22
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15
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7 9 4 5 WORDWHEEL I D
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4 Gentle whirlpool (4)
7 Lord ___, modern British
the Vandellas (6)
2 Fibbed (4)
Using only the letters in the Wordwheel, you have 3 ___ Anderson, Fantastic Mr
architect (6)
3 ten minutes to find as many words as possible, W E 8 Marinalike car model (4)
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none of which may be plurals, foreign words or
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farce (3)
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actress (6)
Islands (4)
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SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
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Private Ryan director (6)
QUICK CROSSWORD 1 4 2 8 9 6
15 19th letter of the Greek
11 Sammy Davis Jr’s gang of

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RA F A E L KN O T
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C E I I E
8 9 7 6 8 4 7 9 4 3 9 7 6 1 8 2 5 21 Site of the 1972 summer golf course (4)
K E Y S DU D L E Y 6 9 8 6 9 8 was HOSTILITY 8 7 6 9 2 5 4 3 1 Olympic Games (6) 19 Female parent (3)
 Punter
28 CITYA.M. 11 DECEMBER 2009

| Racing

RACING TRADER | BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THIS WEEKEND’S RACING ACTION.

Celestial Halo set to shine bright

in Boylesports.com International
P CHELTENHAM TOMORROW
AUL NICHOLLS can continue
his extraordinary run of
Saturday big race wins by
landing
Boylesports.com
tomorrow’s
International
Hurdle at Cheltenham with last
year’s Champion Hurdle runner-up
CELESTIAL HALO.
Pre-season word from Ditcheat
suggested that the Andy Stewart
owned five-year-old had improved
beyond recognition over the sum-
mer and he backed up those
rumours when spread-eagling a
decent looking field at Wincanton
on his reappearance. He is set to face
a far stronger field in tomorrow’s
Grade Two contest including the
reigning Champion Hurdler
Punjabi. However, Nicky Henderson
has warned us that his charge will
improve for the run and he’d need
to be 100 per cent to have any
chance of repelling Celestial Halo in
my opinion.
Our selection loves the course
(won a Triumph Hurdle and second
in a Champion Hurdle) and more
importantly loves soft ground. I
expect him to take plenty of catch-
ing under a bold ride from the front
and wouldn’t put anyone off taking
the 8/1 on offer with Boylesports
about him winning the
International and the Champion
Hurdle in March.
Regular readers of this column
would have already backed
Atouchbetweenacara for tomor-
row’s Boylesports.com Gold Cup and
I’m certainly not deserting Tim
Vaughan’s runner at this late stage.
He is definitely a chaser with a huge
amount of potential and looks sure
to go very close if putting in a clear
round. However, it may pay to have a
few quid each-way on Irish raider
SKY’S THE LIMIT at 12/1. Eddie
O’Grady landed last month’s Paddy
Power Gold Cup and this grey for-
mer Coral Cup winner is dangerous-
ly well handicapped for a horse of
his ability.
Brian Ellison’s ULTIMATE made
a huge impression on his debut
over hurdles at Huntingdon last
month. He trounced Nicky
Henderson’s Zarinski by 22 lengths
and could be a bit special. I’ll be
backing him in tomorrow’s opener
at 12.10pm, as well as taking the
40/1 Hills offer about him landing
the Triumph Hurdle in March.
Although he won’t be much of a
price, ZAYNAR looks impossible to
oppose in the Relkeel Hurdle at
3.40pm. He looked in great heart at
Ascot on his reappearance and two
and a half miles around
Cheltenham with some cut in the
ground is just about his ideal assign-
ment.
Looking at today’s action and
Garde Champetre seems to have
been given a virtually impossible
task at the weights by the handicap-
per in the Glenfarclas Cross Country
Chase. HEADS ONTHE GROUND was
beaten under two lengths when the
pair met last month, yet is 10lbs bet-
ter off at the weights. I expect them
to finish first and second again, this
time with the placings reversed.
Over at Doncaster, Philip Hobbs’
MENORAH looks a pretty useful type
and can follow up last month’s
Warwick win by landing their open-
ing contest at a ridiculously early
11.50am.
POINTERS...
MENORAH 11.50am Doncaster (Fri)
HEADS ONTHE GROUND 1.15pm Cheltenham (Fri)
ULTIMATE 12.10pm Cheltenham (Sat)
SKY’S THE LIMIT e/w2.25pm Cheltenham (Sat)
CELESTIAL HALO 3.05pm Cheltenham (Sat)
ZAYNAR 3.40pm Cheltenham (Sat)
CELESTIAL HALO Champion Hurdle (Cheltenham)
ULTIMATE Triumph Hurdle (Cheltenham)
live on Channel 4
GOING: New course - SOFT (Good to soft in places; GoingStick 6.2) supplied by RACING POST
2.25 BOYLESPORTS.COM GOLD CUP (A HANDICAP CHASE) GRADE 3 (1) 2m 5f £85,515
1 U125F-U GWANAKO (21)(D) 6 11-12 H Skelton (3)
P Nicholls The Stewart Family
2 /PP4-61 OUR VIC [B] (6)(CD)(C)(D) 11 11-12(5exD Cook (3)
D Pipe D A Johnson
3 /2837-2 TAMARINBLEU [B] (42)(CD)(C)(D)(BF) 9 11-10 T Scudamore
D Pipe The Arthur White Partnership
4 211F2-F CHAPOTURGEON (28)(CD)(C)(D) 5 11-10 T J Murphy
P Nicholls D A Johnson
5 1387-12 POQUELIN (28)(C) 6 11-8 R Walsh
P Nicholls The Stewart Family
6 1P04PF- STAN (252)(CD)(C)(D) 10 11-5 S Durack
T Vaughan Paul Beck
7 F/2F21- ATOUCHBETWEENACARA (241)(CD)(C)(D) 8 11-5 B J Geraghty
T Vaughan Paul Beck
8 180P-3P KNOWHERE (28)(C)(D) 11 11-3 N Fehily
N Twiston-Davies H R Mould
9 86FF-1F BIBLE LORD (20)(D) 8 11-0 E Cookson (7)
A Turnell M Tedham
10 4/30-P4 SKY’S THE LIMIT [V] (10)(C)(D) 8 10-13 Andrew J McNamara
E O’Grady Ire Exors Of The Late Raymond J Rooney
11 1145-15 JAYO (199)(BF) 6 10-12 P Townend
W Mullins Ire Peter Garvey
12 F313-91 RAZOR ROYALE (29)(C)(D) 7 10-11 P J Brennan
N Twiston-Davies C Cornes

INSIDER
13 5020-11 MOUNT OSCAR [T] (14)(D) 10 10-11 J Tizzard
the

C Tizzard Mrs Jean R Bishop

14 1141-31 SKIPPERS BRIG (10)(D) 8 10-11(5ex)B Harding
N Richards Ashleybank Investments Limited
15 31/21-3 FROM DAWN TO DUSK [T] (77)(C)(D)(BF) 10 10-7 R Flint (3)

J
UST as Sea The Stars was a different
class to his rivals, JOE MCELDER-
RY is in a different league to the oppo-
nents he faces on the X Factor final.
Don’t get me wrong, I don’t think he is a ‘pop
star’ at all but I will give him his dues and say
that he has the X Factor and a very good
voice for the stage or film. So there you go,
back him with Stan James at a remarkable
1/2. Christmas has come early!
Denman was magnificent in the Hennessy
but an even tougher looking handicap is due
to start at Cheltenham tomorrow at 2.25pm.
The Boylesports.com Gold Cup looks as
impossible to pick as the Britannia Handicap
at Royal Ascot this year. Tim Vaughan is prov-
ing to be a serious trainer over the sticks. His
Atouchbetweenacra is a worthy favourite and
no doubt will have a huge number of follow-
ers but I can’t back a horse that may well be
subject to so many negative thoughts.
If the ground happens to dry out between
now and the race then I will be backing
FROM DAWN TO DUSK. This Philip
Hobbs inmate has a fabulous record at
Cheltenham and I think he may still be a few
pounds ahead of the handicapper especially
on good ground. If it actually gets wetter
then I’m probably going to have a few pounds
e/w on RAZOR ROYALE. We are get-
ting close to the time I stop backing any of
Nigel Twiston-Davies’ runners but I think we
should be okay until the New Year.
P Hobbs C G M Lloyd-Baker
16 1341P7/ IDOLE FIRST (728)(CD)(C)(D) 10 10-7 A Coleman
Miss V Williams D and J Racing Ltd
1796P9353 HOLD EM [T,P] (28)(D) 7 10-5 R Thornton
W K Goldsworthy David Hughes Mike Evans and Partners
S.P. F’CAST: 5 Poquelin, 13 -2 Atouchbetweenacara, Chapoturgeon, 8 Sky’s The Limit, 9 Tamarinbleu,
10 Razor Royale, 12 Hold Em, 14 From Dawn To Dusk, Gwanako, Skippers Brig, 16 Mount Oscar,
20 Jayo, Our Vic, 25 Bible Lord, Stan, 33 Idole First, Knowhere.

WHEN YOU OPEN AN ACCOUNT*

FREEPHONE BETTING

IF YOUR SELECTION FINISHES 2nd IN THE

BOYLESPORTS.COM
INTERNATIONAL SPECIALS

Paul Nicholls Trained Winner of the

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CITYA.M. 11 DECEMBER 2009
FOOTBALL TRADER | BEN CLEMINSON HAS TEAMED UP WITH BETTORLOGIC
TO BRING YOU THE CITY AM FOOTBALL TRADER
Andrey Arshavin, (left), celebrates scoring for Arsenal.
Goal glut set to continue
in crucial Big Four battle
LIVERPOOL
ARSENAL
SUNDAY, 4.00PM SKY SPORTS
MANCHESTER CITY’S defeat of Chelsea
has breathed new life into the title race
and although Liverpool are disregarded at
66/1, Arsene Wenger may feel his team are
still in with a chance. They did well to
bounce back from the disappointment of
the Chelsea defeat against Stoke last week-
end, while Liverpool were fairly abject and
lacking of ideas at Blackburn without
Fernando Torres.
Games between Liverpool and Arsenal
have been very exciting in recent seasons –
you have to go back to 1999 for the last
goalless draw between the sides. In the
past 10 games across all competitions,
MANCHESTER UNITED
ASTON VILLA
TOMORROW, 5.30PM ESPN
ASTON VILLA travel to Manchester tomor-
row looking for their first ever Premier
League win at Old Trafford. The fact that
the majority of United’s defenders are on
the sickbed may give Martin O’Neill hope
that the hoodoo can be broken, or it could
help the trend of goals between these two
continue.
The Theatre of Dreams has been any-
thing but for Aston Villa fans in recent sea-
STOKE
WIGAN
TOMORROW, 12.45PM SKY SPORTS
THE FOUNDATION of Stoke’s recent suc-
cess has been winning their home games
against the so-called lesser lights. The
Britannia has become something of a
fortress and they have won four and
drawn the other of five games against
non-Big Four teams so far this season.
Roberto Martinez’s Wigan, on the other
The Punter | Football
four have produced at least five goals, cul-
minating in last season’s incredible 4-4
draw. That game was even more bizarre
seeing as it was only 1-0 to Arsenal at the
break. Both teams have scored in all of the
last 10 contests between the two across all
competitions and, in the Premier League,
the same is true in 14 of the last 16.
The outright market is not an easy one
in this game as, although the Gunners are
third in the table, they’ve only got four
more points than Liverpool – albeit having
played one game less. Arsenal have lost
three on the road this season and two of
their last three home and away, whilst
Rafa Benitez’s team have only lost at
Anfield once in the league. The stalemate
therefore looks the safest option and with
the last four Premier League meetings all
ending in a score draw, I’m happy to back
that at 23/10 on Betdaq.
Bettorlogic.com shows that a half-time
draw is also on the cards with Liverpool
drawing the first half in 15 of their last 28
sons and their side have lost 13 of their
last 17 visits, including all of the last six.
Since United lost to Man City in February
2008, they have won an astonishing 23 of
25 home games against non-Big Four
sides. Their record is also impressively con-
sistent against top-half, non-Big Four
teams – winning 20 of 22 such matches
since 2006/07.
Sir Alex Ferguson’s defensive injury cri-
sis has been well documented, but it did
nothing to stop them giving Wolfsburg a
3-1 beating in midweek. Boylesports are a
standout 1/2 for United to pick up their
seventh home win of the season and that
should be snapped up.
Goals have been the name of the game
in recent contests between these two and
it’s interesting that in the last six league
hand, have been a measure of inconsisten-
cy, having beaten Aston Villa and Chelsea,
but picking up just four points from their
last five games.
Wigan have certainly felt the depar-
tures of Wilson Palacios and Emile Heskey
in January, as they have lost nine of 14
away games at non-Big Four opposition,
including four of their last five. In fact,
they have actually lost nine of their last 11
away games since April.
Tony Pulis has been a master of identify-
ing the games where his team really have
to take all three points and they have won
13 and lost just two of 20 home games
against all bar the Big Four since being
promoted. The Potters lost at home to a
29
...the home of form
Picture: ACTION IMAGES
home games and Arsenal being level at
the interval in 10 of their 16 away games
against Big Four teams since 2004/05. The
HT draw / FT draw double result is good
value at 9/2 with Hills.
Sporting Index have been counting the
cost of high scoring games all season and
these are two of the main culprits.
Anfield fans have witnessed four or more
goals in 10 of the last 12 Premier League
games here and that is also the case in
eight of Arsenal’s last 13 away contests.
Punters may think that Big Four games
are often cagey affairs, but that is not nor-
mally true when Arsenal leave North
London. Since 2008, five of their six at Big
Four opponents have featured at least
three goals.
POINTERS...
Match to be drawn at 23/10 on Betdaq
Draw HT / draw FT at 9/2 with Hills
Buy total match goals at 2.8 with Sporting Index
defeats United have dished out to Villa at
Old Trafford, five have produced at least
four goals. This trend also applies to recent
games between United at home against
similar teams to Villa. Since 2006/07, 16 of
their 22 games hosting top-half, non-Big
Four outfits have produced at least three
goals – including five of the last six – with
eight seeing a minimum of four.
Villa also tend to apply a positive philos-
ophy when travelling to the Big Four and
eight of their last 11 visits have featured
three or more goals, with all of their last
13 producing at least two.
POINTERS...
Man United to win at 1/2 with Boylesports
Buy total match goals at 3.1 with Sporting Index
then bottom half Everton in their second
ever Premier League game, but have since
remained unbeaten in 10 games hosting
bottom-half sides. They have won seven of
those, incredibly all of which have come
by the HT draw / FT win double result.
Wigan have suffered nine defeats at
non-Big Four opponents since January –
five coming by the HT draw / FT loss result
– so that outcome, at a decent looking 4/1
with Boylesports, is worth a bet.
POINTERS...
Stoke to win at 11/10 on Betdaq
Draw HT / Stoke FT at 4/1 with Boylesports
Sell total match goals at 2.3 with Sporting Index
 Sport
30 CITYA.M. 11 DECEMBER 2009

Results
Swann inches
WIGGINS AIMS FOR THE SKY
CRICKET
SOUTH AFRICAN AIRWAYS XI V ENGLAND
EAST LONDON: South African Airways XI drew with England
ENGLAND

from hat-trick
A Cook c Bossenger b Pietersen......................................................................81
P Collingwood c van Wyk b Ntshona ............................................................33
I Bell ret out..............................................................................................................48
M Prior ret out ........................................................................................................44
S Broad b Weise ......................................................................................................15
G Swann not out......................................................................................................39
G Onions not out ......................................................................................................13
Lb1 w1 nb17..........................................................................................19
Total (8 wkts., dec 78 overs) ....................................................329
Fall: 4, 22, 91, 148, 176, 259, 259, 288.
Bowling: Pietersen 18-2-71-3, Ntshona 11-0-46-1, Weise 18-2-89-2, Adams the off-spinner. “I’ve never had a hat-
▲

15-3-51-0, van Neikerk 12-0-53-0, Bossenger 4-0-18-0. CRICKET

SOUTH AFRICAN AIRWAYS XI trick at any level – and I told everyone
D van Wyk lbw Swann..........................................................................................27
BY FRANK DALLERES that as well.
A Agathagelou lbw Onions ..................................................................................5 SPINNER Graeme Swann claimed “I said, ‘[skipper Andrew] Strauss –
S Avontuur st Prior b Swann............................................................................68
T Bavuma c Cook b Swann ..................................................................................6 superb figures of 6-55 as England get everyone round the bat. I’m des-
R van Neikerk c & b Swann ..................................................................................8 warmed up for next week’s first Test perate for this’.”
W Bossenger not out ............................................................................................35 with a draw in their tour match His performance in the two-day
D Weise c Collingwood b Swann........................................................................0
M Mosehle b Swann ................................................................................................0 against a South African Invitational match augurs well for Wednesday’s
C Pietersen not out ................................................................................................16 XI. first Test in Pretoria. England’s prepa-
Lb2 ..............................................................................................................2 Swann also performed well with rations continue with another two-
Total (7 wkts., 47 overs) ..............................................................167
Fall: 15, 57, 81, 100, 145, 145, 145. the bat, hitting a quickfire 39, as the day warm-up against the same
Bowling: Onions 10-2-31-1, Broad 11-2-55-0, Davies 10-4-24-0, Swann tourists declared on 329-8. But there opponents, starting today.
16-2-55-6. was little time left for England to skit- Resuming on 142-3 after a rain-hit
tle out the home side, despite first day, opener Alastair Cook took
TODAY’S DIARY Swann’s best efforts, and they fin- his tally to 81, while Ian Bell (48) and
COCA-COLA LEAGUE ONE: Brighton v Colchester (7.45) ished on 167-7 in reply. Matt Prior (44) enjoyed a stand of 83
RUGBY UNION Swann’s success was tainted with before the pair retired at lunch.
regret, however, after he came agonis- Graham Onions took the first wick-
HEINEKEN CUP—Pool 1 (8pm):: Munster v Perpignan.
Pool 2 (7.30):: Glasgow v Gloucester.
ingly close to a first career hat-trick et for England before Swann started BRITISH cycling star Bradley Wiggins says joining Team Sky “feels like coming home”,
by taking three wickets from four tearing through the line-up, with after signing a four-year contract with the first ever UK ProTour outfit. Triple Olympic
deliveries. only Sammy-Joe Avontuur (68), who champion Wiggins, who came fourth in this year’s Tour de France, will spearhead their
SPORTS EDITOR JON COUCH “It actually hurt. I went down and reached his half-century off 65 balls, quest to win the famous title by 2014. He added: “This team wants to be the biggest, the
email sport@cityam.com clutched my head. I was gutted,” said offering stern resistance. best and the most admired team in the world.” Picture: PA

SPORT | IN BRIEF
Renault court investors Falcons winging
Romero blasts Olympic changes
CYCLING: British Olympic champion
Rebecca Romero has slammed an over-
home soil in the Alfred Dunhill
Championship after carding a blemish-
free eight-under-par round of 64. but poised to stay in F1 their way into
haul of the schedule that means she will
not get the chance to defend her title in
London in 2012.
Sweden’s Pelle Edberg is one shot
adrift, while Scotland’s Alan McLean and
Irish dup Shane Lowry and Damien
quarter-finals
The individual pursuit, won by Romero McGrane are on five under. boss Dave Richards, formerly of
▲

FORMULA ONE
and compatriot Bradley Wiggins in Benetton and BAR, are among the

▲
BY FRANK DALLERES RUGBY UNION
Beijing last year, has been dropped in Hatton itching for a comeback frontrunners to take a large stake.
favour of sprint events, although gender BOXING: Britain’s Ricky Hatton has RENAULT are set to stay on the grid The development comes as leading FULL-BACK Alex Tait’s second-half try
parity has been introduced with five dropped the strongest hint yet that he is next season – but the team is likely to F1 teams plot a revamp of the points nudged Newcastle Falcons closer to
events each for men and women. planning a return to the ring. be majority owned by new investors. system ahead of the 2010 season. the European Challenge Cup last
“There didn’t need to be such a mas- The former two-weight champion has The French manufacturer has been The F1 Commission, made up of eight in a 17-6 win over Montauban.
sive overhaul,” said Romero. “It’s creating
been mulling his future since being com- mulling whether to follow BMW and key figures from the sport, wants a The home side trailed 6-3 at half-
inequality between sprint and endurance prehensively beaten by Manny Pacquiao Toyota out of motorsport’s most pres- change from the 10, eight, six, five, time at a freezing Kingston Park but
riders.” in May. tigious competition. four, three, two, one scheme allocat- Tait’s try and three Jimmy Gopperth
“I’m going to have a good think about But the team is expected to ed to the top eight in each race. penalties turned the tide in
European Tour gets underway it over Christmas and the new year,” said announce next week that it is staying Instead drivers stand to earn 25, 20, Newcastle’s favour.
GOLF: South Africa’s Ulrich van den Berg Hatton, who mentioned Juan Manuel in Formula One under the Renault 15, 10, eight, six, five, three, two and It meant they retained their
took the first-round lead in the opening Marquez and Oscar de la Hoya as poten- name, with the company itself only one for the top 10 places from next unbeaten record in Pool Five ahead of
tournament of the 2010 European Tour tial opponents. retaining a 25 per cent stake. season. The proposal will go before next week’s return clash in France
season. “But I’m starting to get the itch. I’d Luxembourg venture capitalist governing body the World Motor and denied Montauban a losing
Van den Berg is one shot clear on like to bow out in an absolute war.” Gerard Lopez and British Prodrive Sport Council today. bonus point.
CITYA.M. 11 DECEMBER 2009
SUNDAY SHOWDOWN: LIVERPOOL V ARSENAL
Reds eyeing
recovery as
stars return
▲
FOOTBALL
BY FRANK DALLERES
LIVERPOOL manager Rafael Benitez
has warned Arsenal that his side will
shake off their malaise in time for
Sunday’s Premier League showdown.
The Reds have won just twice in
their last nine attempts and ended a
disastrous Champions League cam-
paign with a 2-1 home defeat to
Fiorentina on Wednesday.
But Benitez has been encouraged
by the return from injury of top scor-
er Fernando Torres, captain Steven
Gerrard and £20m summer signing
Alberto Aquilani.
And he insists they are now focused
on ensuring they claw their way back
up the table, starting at the weekend
against top-four spot rivals Arsenal.
Tottenham boss Redknapp faces
cash-strapped transfer window
FOOTBALL
▲
TOTTENHAM boss Harry Redknapp
has been told he will have to sell if he
wants to buy in the January transfer
window – as revealed by City A.M. last
month.
Spurs chairman Daniel Levy con-
firmed there would be no repeat of
last winter’s £45m spree at the club’s
annual meeting yesterday.
“We do not envisage being very
Grant calm as Pompey play
down administration reports
▲
FOOTBALL
BY FRANK DALLERES
PORTSMOUTH manager Avram Grant
says his quest to drag them off the
bottom of the Premier League is dis-
tracting him from their off-field prob-
lems.
Pompey yesterday strenuously
denied reports that they are set to go
into administration and chief execu-
tive Peter Storrie is poised to leave. It
Q. How many minutes did Man-of-the-Match David Beckham
play in England’s win over Belarus?
For more remarkable figures, talk to F&C Investments. www.fandc.com
Issued and approved by F&C Fund Management Limited. Authorised and regulated by the Financial Services Authority (FSA). Head Office: Exchange House, Primrose Street, London EC2A 2NY.
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“I hope that a new beginning, a
new season, starts for us from this
point. Now we must concentrate on
Arsenal and try to do well on Sunday,”
said the Spaniard.
“We knew we could not progress
before the [Fiorentina] game. I would
expect a different approach on
Sunday against Arsenal. For us the
main thing is to progress in the
Premier League.”
Torres, who has 10 goals already
this season, made his first appear-
ance for more than a month on
Wednesday, while Benitez feels
Gerrard is close to peak fitness again.
Former Roma midfielder Aquilani
impressed on his first start, which
was delayed by knee trouble, and the
trio provide a huge boost to
Liverpool’s attacking options.
active in the January transfer win-
dow, although we’ll take note of any
opportunities that arise,” said Levy.
“That’s with the proviso, however,
that we don’t envisage net spending.”
Tottenham director Sir Keith Mills
told City A.M. last month that “any
activity will be quite small”, despite
the club’s record profits.
Striker Roman Pavlyuchenko is
expected to leave, which could free
up funds for Redknapp.
comes after it emerged the club had
paid its players late for the second
time this season, and while a transfer
embargo still threatens to scupper
their January transfer plans.
But Grant, who took charge last
month after Paul Hart was sacked,
said he trusted owner Ali Al-Faraj to
resolve the crisis.
“My job is to work on what hap-
pens on the pitch,” said the Israeli,
whose side travel to Sunderland
Benitez has declared the Premier League to be his priority.
“Gerrard is getting more games
under his belt, Torres looked very pos-
itive and Aquilani played well and
showed quality with his passes,”
Pulis: Beattie bust-up is over
▲
FOOTBALL
BY FRANK DALLERES
STOKE manager Tony Pulis insists he
has “drawn a line under” his dressing-
room bust-up with striker James
Beattie.
Pulis and Beattie clashed after
Saturday’s defeat at Arsenal, prompt-
ing speculation about the player’s
future at the Britannia Stadium. The
club’s silence throughout the week
did little to quell rumours that the
tomorrow. “I know there is a situa-
tion off the pitch, but the people who
need to deal with it are dealing with
it. They told me everything will be
okay. If the board makes an official
statement about this, I have no rea-
son not to believe it.
“I know they are trying their best
to solve our problems off the pitch. I
have enough problems on the pitch.
We are bottom of the league and I
need to deal with this.”
Picture: PA
added Benitez. “Both Torres and
Aquilani are fit and will train hard for
the rest of the week and they will be
ready for the Arsenal match.”
storm, sparked by a quarrel over the
team’s Christmas party, had not
passed. Pulis has vowed not to reveal
exactly what happened in the
Emirates Stadium dressing room, but
is adamant the matter has been
resolved.
“I’ve always had certain golden
rules and one is what happens in the
dressing room stays in the dressing
room for lots of reasons,” he said.
“One is respect: respect for that
group and the players. It should be
Eriksson in buyout link as
County on market again
FOOTBALL
▲
NOTTS COUNTY director of football
Sven-Goran Eriksson is thought to be
interested in joining a management
buyout of the tumultuous League
Two club.
Owners Munto Finance, who only
bought the Magpies five months ago,
are understood to be ready to sell and
already in talks with interested par-
ties. That has plunged the future of
former England boss Eriksson into
doubt, the Swede having been lured
Sport 31
Ramsey wants
extended run in
Gunners team
FOOTBALL
▲
ARSENAL youngster Aaron Ramsey
hopes his impressive European mid-
week display will earn him a starting
role at Anfield on Sunday.
The Welsh midfielder, 18, put him-
self in the frame to face Liverpool
with a stylish display as a youthful
Gunners side lost at Olympiacos.
“I’m trying my hardest in games to
show what I can do,” said Ramsey.
“I also work hard in training as
well, so I am just concentrating on
what I have to do and then it is up to
the manager.”
Arsenal boss Arsene Wenger’s
injury worries worsened yesterday
when it emerged forward Nicklas
Bendtner will not be back until the
new year. The Dane had been expect-
ed to return any day now, after hurt-
ing his groin last month.
Utility man Emmanuel Eboue and
midfielder Tomas Rosicky, injured
against Stoke last week, will miss the
trip to Merseyside, but striker
Eduardo da Silva and midfielder
Abou Diaby could return. Defender
William Gallas is a slight doubt.
kept within the group. I’ve never felt
the need to come out and discuss
things that have happened.
“We’ve had a meeting with the
group on Monday and I’ve had a
meeting with James himself. As far as
I’m concerned a line has been drawn
under it and we move on.”
Whether Beattie is still at Stoke
after January’s transfer window
remains to be seen, but Pulis says he
will be in the squad to face Wigan
tomorrow, injury permitting.
to County by Munto. But Eriksson and
executive chairman Peter Trembling
could lead a buyout, if they can
attract other investors to join the bid.
County have rarely been out of the
headlines since Munto took over and
appointed Eriksson and Trembling.
Questions about who is behind
Munto, a Middle Eastern investment
fund based in Switzerland, have
dogged the club. The team currently
sit third in the table, but has had to
cope with the departure of manager
Ian McParland and Sol Campbell.
A. 30.