BUSINESS WITH PERSONALITY
JAZZ UP YOUR KIDS’
Issue 1,208 Friday 27 August 2010
S&P CASTS DOUBT
ON BANK REVIVAL
BANKING
▲
BY OLIVER SHAH
RATING agency Standard & Poor’s
(S&P) cast doubt on the strength of
the UK banking sector’s recovery yes-
terday, saying lenders had been
buoyed by a rising economic tide.
The claim, made after this month’s
bumper first-half earnings season,
was immediately rebuffed by banking
industry figures. While institutions
realise they have been helped by an
improving trading environment, they
argue they have made strenuous
efforts to shrink their balance sheets
and sell off non-essential assets.
S&P said a sustained upturn in UK
banking performance remained “far
from certain” despite a series of fore-
cast-smashing results earlier in
August. Stronger players Barclays and
HSBC generated pre-tax gains of £4bn
and £7bn respectively, while state-
owned Lloyds Banking Group earned
£1.6bn and Royal Bank of Scotland
made a profit of £1.1bn.
But the fortunes of banks are close-
ly tied to an uncertain economy, S&P
said, with several lenders still deeply
reliant on government-guaranteed
wholesale funding and in need of fur-
ther refinancing in the coming years.
The report concludes that the
future credit ratings of British banks
are likely to largely remain out of the
hands of their management teams.
S&P’s key concern is government eco-
FTSE 100 ▲ 5,155.84 +46.44 DOW ▼ 9,985.81 -74.25
AUTUMN WEAR
TRENDY TOGS FOR CHILDREN P26
From left: Barclays’ John Varley, RBS’ Stephen Hester, HSBC’s Michael Geoghegan and Lloyds’ Eric Daniels
nomic policy, which it expects to
squeeze incomes.
Analysts wrote: “While a range of
management actions have con-
tributed to the improved perform-
ance, in our view, the more
important contributory factors were
the developments beyond the control
of banks’ management… We expect
economic and market developments
that are largely beyond the control of
banks’ management teams will con-
NASDAQ ▼ 2,118.69 -22.85 £/$ 1.55 unc £/¤ 1.22 unc ¤/$ 1.27 unc
BANKERS
www.cityam.com
tinue to disproportionately influence
UK bank ratings throughout the
remainder of 2010.”
Angela Knight, chief executive of
the British Bankers’ Association, said:
“The UK banks have done substantial
capital raisings and have been repair-
ing their balance sheets, writing off
bad loans and so on. That has been
widely recognised – a lot of work has
taken place.”
A source close to one of the part-
Pictures: REUTERS/ GETTY
nationalised banks emphasised the
efforts being made by Lloyds and RBS’
management teams to shed non-core
units to comply with European Union
rules on accepting state aid. RBS has
sold its share of a commodities trad-
ing joint venture, Sempra, to
JPMorgan and offloaded 318 high
street branches to Santander.
“Banks are working on their core
businesses too, trying to attract more
deposits,” the source said.
STAY IN UK
RECRUITMENT
CHIEF IN U-TURN
ON EXODUS P17
FREE
Nadir offers
more cash
to the Tories
▲
POLITICS
BY STEVE DINNEEN
ASIL Nadir, the controversial tycoon
who yesterday returned to the UK
after 17 years living in exile, embar-
rassed the Conservatives by saying he
would like to give them money.
The notorious fugitive, who donat-
ed £500,000 to the Tories in the 1990s,
said he would like to hand over even
more cash to David Cameron’s party.
He said: “It’s only fair if you approve of
the policies of a government, if you
want to extend their power, why not
do it?”
The Tories are privately furious about
the suggestion, with one source close to
the party telling City A.M.: “He hasn’t got
a cat in hell’s chance. There is no way
we could ever take money from some-
one with a track record like Nadir’s.
There is no question. It will never, ever
happen.”
A party spokesman was more diplo-
matic, saying: “All donors meet strict
requirements.”
Nadir was a playboy of the business
world, with his firm reaping huge
rewards before it crashed amid allega-
tions of large scale fraud. He will face
£34m fraud charges relating to his
stewardship of failed conglomerate
Polly Peck. ANALYSIS: P13
Asil Nadir mixed with
top politicians and
royalty before leaving
the country following
allegations of fraud
Certified Distribution
05/07/2010 till 01/08/10 is 94,889
 2 News
Chote is still best man for the OBR
DEPUTY EDITOR’S LETTER
DAVID HELLIER
THE highly respected Institue of Fiscal
Studies (IFS) has been a thorn in the
side of government – both
Conservative and Labour – for as long
as I can remember.
During the Gordon Brown era it
constantly pulled up the then chan-
cellor for overpromising on the public
finances and earlier this week it sav-
aged the current regime, declaring
that its recent Budget will hit the
poorest hardest.
If it was seen to have been constant-
ly nit-picking, but without any merit,
then the IFS would not have the repu-
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Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
Commercial
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Commercial Director Harry Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
BANKS BACK SWITCH TO RENMINBI
FOR TRADE
A number of the world’s biggest
banks have launched international
roadshows promoting the use of the
renminbi to corporate customers
instead of the dollar for trade deals
with China. HSBC and Standard
Chartered are offering discounted
transaction fees and other financial
incentives to companies that choose
to trade in the Chinese currency.
$3M PAPER LOSS ON SVANBERG'S BP
SHARES
BP’s chairman is nursing a paper loss
of almost £2m after the spill in the
Gulf of Mexico in April. Carl-Henric
Svanberg, who joined the UK oil
group in January, owns 925,000
shares which he bought in two sepa-
rate lots. BP’s London shares closed
yesterday at 385.60p, valuing Mr
Svanberg’s holding at £3.56m com-
tation it has today.
Unfortunately some think that this
week’s row over whether the IFS was
right to describe chancellor George
Osborne’s first Budget as unfair
might jeopardise the chances of its
head, Robert Chote, becoming the sec-
ond head of the Office for Budget
Responsibility. But it shouldn’t do.
It is typical of Chote, a former jour-
nalist with the Independent – where I
worked with him – and the Financial
Times – that the little matter of the
possibility of a plum job in govern-
ment would not make an iota of dif-
ference to his organisation’s take on
the Budget.
Osborne and deputy prime minis-
ter Nick Clegg made much of the
Budget’s fairness and for the IFS to
have questioned this claim was
bound to cause a stir. It would also
have caused more than a little irrita-
tion.
But it would not have crossed
Chote’s mind to pull some punches
when it came to the crunch.
Greece starts
bank sell-off
ECONOMY
▲
BY OLIVER SHAH
GREECE’S government took a step
toward offloading its stakes in
ATEbank and Hellenic Postbank yes-
terday when it named Deutsche
Bank, HSBC and Lazard as advisers.
A statement said the three invest-
ment banks would “explore and
assess the Greek state’s strategic
options, evaluate its holdings in the
banking sector and assess the conse-
quences of such options”.
Athens needs to raise at least €1bn
(£817m) each year between 2011 and
2013 as a condition of its European
Union bailout in May. Its 77.3 per cent
holding in troubled farm lender
ATEbank and 33 per cent stake in
healthier Hellenic Postbank are
expected to be the first assets on the
block after Piraeus Bank, Greece’s
pared with the £5.4m he paid for
them.
CPP BENEFITS FROM DEMAND FOR
FRAUD PROTECTION
Continued strong growth in the UK
helped CPP, the credit card and iden-
tity theft insurer, report a 20 per cent
rise in underlying interim profits to
£24m. The company raised a total of
£150m at 235p a share when it joined
the full list in March. However, £120m
went to Hamish Ogston, the
Yorkshire entrepreneur who started
the company 30 years ago.
CHINA UNICOM PAYS PRICE OF 3G
COMPETITION
China Unicom on Thursday unveiled
the damage caused by its attempts to
grab market share amid the fierce
competition sparked by the start of
third-generation services in China
last year. The firm said its net profit
fell 62 per cent in the first half year-
on-year after it spent more than half
its mobile revenue on marketing.
But if Osborne and Clegg can stom-
ach it, they should embrace Chote,
not keep him out of the fold.
The Office of Budget Responsibility
will only work as an institution if it is
seen to be totally free of government
and the Treasury. The first incum-
bent, Sir Alan Budd, was never viewed
as a man who might stand up to
strong political pressure and his short
reign has ended in tears.
Chote has spent his career, both as
a journalist and as head of the IFS, as
a man unafraid to take on any party,
and to do so in an extremely thor-
ough way, with judgments backed by
the hard numbers. It’s still not clear
whether he has applied for the post or
has been approached. But the govern-
ment shouldn’t let this week’s row
get in the way. In my view, an early
announcement heralding his
appointment would be good for all
concerned.
AUTUMN LEAVES
As the leaves fall onto the ground to
fourth-largest lender, offered €701m
in cash for the shares.
State-owned energy, infrastructure
and utilities companies are also
expected to be handed over to the pri-
vate sector over the next three years.
Juergen Michels, chief Eurozone
economist at Citigroup, told City A.M.:
“Everyone knows they’re under pres-
sure to sell, so the worry is they may
not get the right prices.”
Finance minister George
Papaconstantinou said there was
“light at the end of the tunnel after
months of complete darkness”.
Greek finance minister
George
Papaconstantinou said
the country’s prospects
were slowly improving
ROLLS TAKES RIVAL TO COURT OVER
JET ENGINE FANS
Two of the world’s biggest aircraft
engine makers are set to face off after
Rolls-Royce took its rival Pratt &
Whitney to court over alleged patent
infringements. Rolls told sharehold-
ers yesterday that it had issued legal
action against United Technologies,
which owns Pratt, Sikorsky helicop-
ters and Otis elevators.
GOOGLE TAKES ON SKYPE WITH
GMAIL CALLS
Google is to go head-to-head with
Skype by allowing users of its Gmail
service to make telephone calls from
their e-mail inbox. The internet giant
already offered free voice and video
calls via Gmail but will now allow
email users to call landlines and
mobile phones directly. The move
puts it into direct competition with
the internet telephony company.
usher in the autumn, there is always
an air of excitement and expectation
about the place. The holidays were
fun but now we’re ready to swap the
silly season for the busy season.
At City A.M. there’s plenty to look
forward to. As from next Tuesday
(we’re not publishing on Bank
Holiday Monday) we’ll be available at
a host of new stations including
Marylebone, High Barnet and Angel.
Circulation will be increasing
throughout the autumn with a grow-
ing number of readers able to get the
newspaper at the beginning of their
journey. Also on Tuesday we’ll begin
the unveiling of the short list for our
inaugural awards competition that
will take place at the Grange Hotel on
28 October. This will be a time to
acknowledge the heroes of the busi-
ness world. So don’t miss next week’s
papers to see if you or your company
is in the mix. Have a great Bank
Holiday weekend.
david.hellier@cityam.com
Allister Heath is away
Vince Cable (left) and immigration minister Damian Green are at loggerheads
Migration stats cause rift
POLITICS
▲
BY MARION DAKERS
THE LATEST migration figures have
become a battleground for the coali-
tion government, after Conservative
minister Damian Green used the 20
per cent jump in net entrants to illus-
trate the need for a cap on migration.
Immigration minister Green said
yesterday the figures “show why we
must tighten our immigration sys-
tem in order to reduce net migration
to manageable levels”.
ASTRAZENECA TACKLES EAST-WEST
HEALTH DIVIDE
Britain's second-largest pharmaceuti-
cal company has invested $100m
(£64m) in its Innovation Centre China
(ICC), specifically designed to research
diseases that are prevalent in China's
1.3bn population and Asia as a whole.
Among the ICC's targets for future
drug development is chronic obstruc-
tive pulmonary disorder (COPD).
WORKERS FACE PAY CUTS AMID DOU-
BLE DIP RECESSION FEARS
Staff are effectively facing dramatic
pay cuts as companies battle to keep
down costs amid fears of a double dip
recession. Almost 15 per cent of
employers are pushing through pay
freezes, the equivalent of a pay cut
once inflation is taken into account,
the latest salary statistics reveal. The
cuts would hit around one in 20
employees.
CITYA.M. 27 AUGUST 2010
NEWS | IN BRIEF
Credit Suisse hired for AIA IPO
Months after advising Prudential on its
failed $35.5bn (£23bn) bid for AIA,
Credit Suisse has been hired to help the
Asian business float on the Hong Kong
stock exchange. Credit Suisse joins Bank
of America Merrill Lynch, Goldman
Sachs, Morgan Stanley, Citigroup and
Deutsche Bank on AIA’s initial public
offering (IPO), whose basic features will
be worked out over the next fortnight.
Dana attempts to delay takeover
Dana Petroleum will try and stall KNOC’s
plans for a hostile takeover today by
holding back details of its planned
£240m purchase of North Sea assets.
Dana hopes that by leaving the informa-
tion out of its interim results, KNOC will
remain bound by insider trading rules.
Balls sees economic hurricane
Labour leadership candidate Ed Balls
will today pit his financial wits against
the coalition government, by claiming an
“economic hurricane” is about to hit the
UK in a speech at Bloomberg HQ. Balls is
set to tell the chancellor George Osborne
he is a “growth denier” who is ignoring
signs of a global slowdown.
Pictures: REUTERS/GETTY
However, business secretary Vince
Cable disputed the Conservative spin
on the statistics, telling the Financial
Times: “It’s very clear from the fig-
ures that the increase in recorded
immigration has nothing to do with
the number of non-EU work permits
issued: they actually declined.”
Business bodies including the CBI
and the Chartered Institute for
Personnel and Development have
come out against a cap on the num-
ber of immigrants, claiming it will
make the UK less competitive.
GEELY PLANS FOR VOLVO REVEALED
Zhejiang Geely Holding Group Co. is
considering partly repurposing a
nearly completed Geely plant in
southwestern China to make Volvo
cars—part of a turnaround strategy
for the Swedish brand that its new
owner hopes will kick-start sales in
the world's biggest auto market. The
plan also includes building another
car-assembly plant, possibly in
Shanghai.
SWEDISH GOVERNMENT PROPOSES
ECONOMIC REFORMS
Sweden's centre-right government
yesterday proposed reforms worth
32.7bn Swedish kronor for the com-
ing four-year mandate period, includ-
ing labour-market investments and
tax cuts. In its manifesto ahead of the
general election on 19 September, the
government said it plans to spend
SEK12.8bn in 2011 alone.
CITYA.M. 27 AUGUST 2010
Selling prices
accelerate at
a record pace
▲
RETAIL
BY JESSICA MEAD
SHOP price inflation accelerated in
August at its fastest rate since
February 1992, the CBI revealed yes-
terday, raising the ugly spectre of per-
sistently rising prices and creating
even more of a headache for the Bank
of England.
In its August distributive trades sur-
vey, the business lobby reported that
a net 58 per cent of firms said average
selling prices had risen compared to a
year ago. The looming VAT hike to 20
per cent in January, combined with
rising food prices, will only create
more inflationary pressures.
While the outlook for consumer
spending remains uncertain, retailers
are at their most positive about the
future since May 2004, with a net 22
per cent of firms forecasting that the
overall business situation will
improve over the next three months.
More than half of the retailers sur-
veyed said that the volume of sales
rose during the first two weeks of
August, compared to just 18 per cent
experiencing a decline.
Sub-sectors that saw the strongest
growth included clothing, grocers,
and durable household goods, which
the CBI said has been helped by better
weather at the beginning of the
month and the summer holidays.
Lai Wah Co, CBI head of economic
analysis, said: “Better sales growth
continued on the high street in early
August, and retailers are upbeat
about prospects in the coming three
months.”
“However, the broader outlook for
consumer spending is still uncertain,
given the VAT rise next year, subdued
pay awards and the feed-through of
public spending cuts to job losses, ”
she added.
Analysts said that this boded well
for third quarter GDP growth, which
had been expected to slump after a
stunning second quarter. Societe
Generale’s Brian Hilliard said that
yesterday’s CBI data pointed to fur-
ther strong consumption growth in
the three months to October.
Dell chief Michael Dell (l) and HP interim chief executive Cathie Lesjak Picture: REUTERS
HP trumps Dell in latest
$1.8bn bid for rival 3PAR
M&A
▲
BY MARION DAKERS
THE FIGHT for data storage firm 3PAR
accelerated last night as Hewlett
Packard upped its bid to $27 a share,
valuing the business as $1.8bn
(£1.2bn), just hours after 3PAR accept-
ed a $24.30 offer from Dell.
US shares in 3PAR shares rose to
$27.90 in extended-hours trading
after HP’s announcement, suggesting
investors are hoping for a lucrative
News 3
Dow crashes
below crucial
10,000 level
▲
FINANCIAL MARKETS
BY KATIE HOPE
THE Dow Jones closed below the psy-
chologically-crucial 10,000 level yes-
terday as investors shrugged off better
than expected US jobs figures to focus
on an expected downgrade for US
GDP today.
The US blue chip index fell 0.7 per
cent to 9986.81 – its lowest level since
6 July ahead of today’s GDP growth
for the second quarter which analysts
are predicting could be almost halved
from the preliminary forecast of 2.4
per cent to just 1.4 per cent.
There are also fears of what Fed chair-
man Ben Bernanke’s speech on the
economy today, will reveal. Investors
want to “see if the pulse of the Fed is
beating at a fast rate with anxiety over
the economy,” said Avalon Partners’
Peter Cardillo. MARKET REPORT: P19
counter-offer from Dell. Dell signed
an agreement with 3PAR last week, ANALYSIS l Dow Jones
but the deal contained a clause oblig-
ing the firm to match any rival bids. 10,100 9,985.81
HP’s cash offer outbids Dell by 11 26 Aug
per cent, and represents a 180 per 10,060
cent premium on the data storage
firm’s share price on 13 August,
before Dell’s initial approach. 10,020
3PAR’s board said yesterday when
accepting Dell’s bid that it continued 9,980
to unanimously recommend the com-
pany as the best-placed suitor. 09:30 12:00 14:00 16:00
LONDON
CITY TO
COPENHAGEN
FROM £65
ONE WAY
With a flight time of less than
2 hours and a check in time of
only 15 minutes, you’ll hope the
rest of your stay doesn’t go as
quickly. Book at ba.com
CITYA.M. 27 AUGUST 2010 News 5

F&C left reeling by

Co-op chief execu-
tive Peter Marks
said talking down
the economy was
“absolutely” affect-

fresh cash outflows

ing confidence

2014. F&C suffered £2.5bn net out-

▲
FUND MANAGEMENT
BY OLIVER SHAH
SHAREHOLDERS in F&C Asset
Management are watching for a
move by activist investor Edward
Bramson after the company released
a nightmarish set of interim results.
Shares in F&C tumbled six per cent
to 58p yesterday after the fund man-
ager cut its dividend in half to 1p in
an effort to eliminate its net debt by
flows of client cash in the six months
to 30 June. Although underlying pre-
tax profit doubled to £12.4m, as cus-
tomers bought more high-margin
products, the firm’s loss after tax
widened from £8.7m to £19.5m.
F&C is expected to meet in the
next few weeks with Bramson, who
has built up an 11 per cent stake
through Sherborne, his turnaround
vehicle.

Co-op hits out

at Cameron’s
austerity talk
school and hospital workers to repli-
▲

RETAIL
BY OLIVER SHAH
THE Co-operative Group blasted the
government for damaging consumer
confidence with talk of an “age of
austerity” yesterday, despite revealing
an 18 per cent rise in profits.
Britain’s largest mutual retailer
said it had beaten tough conditions to
grow in the first half of the year but
predicted a gloomy trading environ-
ment until at least the end of 2011.
Chief executive Peter Marks told
City A.M.: “Are we going to be helped
by the general economy any time
soon? No – how can you be because
the government is telling us about an
age of austerity.”
Marks said negative language from
politicians was “absolutely” affecting
sentiment on the high street. He
added: “If you talk loudly enough and
long enough about something, peo-
ple start believing it. However, it is
clear the government needed to tack-
le the deficit. Everybody knows we
were living beyond our means.”
Marks’ comments are likely to hit
home with Prime Minister David
Cameron. Earlier this year, Cameron
re-launched an initiative urging
cate co-operative structures in a bid to
improve public services. Chancellor
George Osborne has praised mutuals
as a way of letting people “take own-
ership of their own enterprise”.
Marks’ broadside came as the Co-op
said its purchase of Somerfield
helped push group turnover up eight
per cent to £6.9bn in the six months
to 3 July. The business, whose activi-
ties span food retailing, financial
services, travel and funeral parlour
operations, said profit before pay-
ments to members fell 31 per cent to
£169m. But after one-off items it rose
17.6 per cent to £260m.
Co-operative Financial Services,
which merged with the Britannia last
year, picked up a stream of customers
disillusioned with bigger-name
banks. Its operating results rose by
more than a third to £109.3m and
savers’ deposits grew to £1.4bn.
Prime Minister David
Cameron has tried to
encourage public
sector workers to
form co-operatives

Earthquake, rig explosion and

windstorm curb Chaucer profits
underwriting period… although our
▲

INSURANCE
THE Chilean earthquake, Deepwater
Horizon oil rig disaster and European
windstorm Xynthia conspired to cut
interim profits at Chaucer Holdings
by 59 per cent to £7m.
Shares in the Lloyd’s of London
insurer fell 2.2 per cent to 45p yester-
day as it said “an unprecedented level
of catastrophes” and a slump in
investment performance meant its
return on equity fell from 8.6 per cent
to 3.1 per cent. The company kept its
dividend at 1.3p, but earnings per
share dropped from 2.7p to 0.9p.
Chief executive Bob Stuchbery said:
“The first half proved to be a difficult
property and energy divisions still
produced credible results.”
Analysts said the numbers were
below expectations but highlighted
rate increases in half of Chaucer’s
underwriting portfolio as a positive.
The firm said it was particularly hop-
ing for higher motor insurance rates.
Mark Williamson at KBC Peel Hunt
said: “While the results themselves
are disappointing, the market is like-
ly to look through this and focus on
the rate hardening.”
Eamonn Flanagan at Shore Capital
said the next three weeks of hurri-
cane season would be crucial for
Chaucer’s fortunes in the second half.
CITYA.M. 27 AUGUST 2010 Focus on Diageo 7

US and Europe shun premium brands

RECEIVED wisdom tells us that hard-
pressed customers hit the bottle in
times of economic woe. If they’re
doing that this time round, they
aren’t reaching for Smirnoff Vodka
or Johnnie Walker whisky. Save for a
13 per cent rise in net sales at the
international division, which
accounts for Africa, South America
and the Middle East, Diageo’s full-
year numbers are pretty lacklustre.
In theory, Diageo should boast
high operational gearing, but it isn’t
evidenced by these results: overall
organic sales growth was just two
per cent, while organic profits grew
by exactly the same amount.
This was partly due to higher mar-
keting spend, which was increased
by 50 basis points (pretty expensive
marketing when you consider the
anaemic sales growth).
However, the main drag on prof-
itability was stubbornly sluggish trad-
ing conditions in North America,
which still accounts for a worrying
40 per cent of profits, and Europe. In
these regions, customers are shun-
ning premium brands, or buying
them in supermarkets and off-
licences, where Diageo’s margins are
much lower. In North America, net
sales were off three per cent while
Europe dipped by two per cent.
These results don’t inspire confi-
dence, and management is far from
bullish on the firm’s prospects,
promising “improved” organic profit
growth in the year ahead (an effec-
tive downgrade to the four to five per
cent pencilled in by analysts).
In the long-term, Diageo will come
good. Emerging markets are falling
in love with prestige alcohol brands,
and iconic products like Guinness
will thrive. But rising unemploy-
ment and spluttering economies in
Diageo’s biggest markets make it
impossible to recommend these
shares. david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow

Chief executive Paul Walsh said emerging markets were growing Picture: REUTERS

Diageo offers
bleak outlook
Rose admitted he was being cau-
▲

LEISURE
BY HARRY BANKS
DIAGEO, the world’s biggest spirits
group, expects slightly higher profits
growth this year driven by develop-
ing markets but a cautious outlook
hit its shares after meeting forecasts
for annual earnings.
The London-based maker of
Smirnoff vodka, Johnnie Walker
whisky and Guinness beer saw strong
growth in Latin America, Africa and
Asia, which account for a third of
group earnings, while demand in
Europe and North America was still
weak.
Chief executive Paul Walsh said
the group had seen a strong perform-
ance in the first six months of 2010
and now expects higher growth this
year than the two per cent rise in
underlying operating profit seen in
the reported year to June 2010.
He added that the performance,
“gives us confidence that in fiscal
2011 we well be able to improve on
the organic operating profit growth
we have delivered this year”.
But analysts said the outlook was
cautious with no share buyback pro-
gramme announced and the rise in
the dividend was very modest.
Diageo’s finance director Nick
tious but insisted that he was ready
for any uptick in developed markets
in 2011 with marketing spend set to
rise above sales growth. He said
Diageo sees input costs flat this year
and is well hedged on grain.
“We are a little cautious over our
core developed markets in Europe
and North America but we feel good
about our International and Asia
Pacific regions,” he said.
The group posted pre-exceptional
earnings up 13 per cent at 72p a
share for the year to the end of June,
compared with a consensus of 72.5p.
The final dividend rose six per cent
to 23.5p a share, and the group said it
would now look to increase dividend
payments by six per cent rather than
the five per cent it said previously.
ANALYSIS l Diageo
1160 p
1050.00
1140 26 Aug
1120
1100
1080
1060
1040
1020
7 Jun 25 Jun 15 Jul 4 Aug

SALES BY REGION
ANALYSIS l Net sales by region

International

28%
of net sales

International

34%
of net sales

International

International 11%
of net sales
27%
of net sales
 The Capitalist
8 CITYA.M. 27 AUGUST 2010
A CAAN-DO
ATTITUDE
IN FLOODED
PAKISTAN
AT a time of year when many City folk are
sunning themselves on beaches abroad,
it’s good to see that James Caan, the entre-
preneur most famous for his appearances
on Dragons’ Den, is putting his cash to
good use. Last week he flew out to
Pakistan to help with the flood relief
efforts there. His missive about his experi-
ences doing his bit makes for some
extraordinary reading.
Landing in Lahore, he set about trying
to buy supplies for 1,000 families in a vil-
lage outside Islamabad, but encountered
problems even finding enough food in
the shops to load his lorry.
Finally he got enough food together,
but after travelling through the country-
side, he concludes that “it really is sur-
vival of the fittest out there, and if you
don’t fight for it, you don’t get the aid.
This isn’t how it should be.”
His description of driving through the
flooded area makes vivid reading: “As we
weaved in and out of the tops of trees
that barely broke the surface of the
water, I saw people’s belongings floating
to the top; kitchen utensils, and then the
odd roof top here and there. It was mind-
boggling.” Depressing.
James Caan gets hands-on in Pakistan.
SADDLE UP AMISH ANALYST
BIKES are a far commoner sight in the ANOTHER sensitive City type is James
City these days, what with Boris’s scheme
of rent-a-bike, and now the City of
London is trying to encourage bicycling
too.
They’re calling on senior managers to
take part in sponsored cycle-rides as part
of European Mobility Week, 16-22
September, with each manager tasked
with raising £5,000.
The money goes to Re-Cycle, which
sends second-hand bikes in Africa.
To find out more, and to take the
first step to seeing your boss tottering
about on two wheels, see www.cityoflon-
don.gov.uk/cyclechallenge.
EDITED BY
JEREMY HAZLEHURST
GOT A STORY? EMAIL
jeremy.hazlehurst@cityam.com
It’s survival of
the fittest out
there, if you
don’t fight for
aid then you
don’t get it.
That’s really
not how it
should be DICK FULD: MAN
OF EMOTION
THIS is not something you hear very often,
but here goes: “Poor Dick Fuld.” The for-
mer Lehman Brothers boss, who was
known as The Gorilla for his gruff, not to
say, er, hands-on, management style, is
hard to love, but it seems that he has a
softer side.
Former Lehman employee named Kevin
Montier, an analyst at investment White has recently revealed a strange
management firm GMO. In a research encounter he had with his boss in the
note this week he writes: “As those who wake of the investment bank’s collapse in
know me can attest, I’ve never worried late 2008. the 47-year-old told how, just
about being fashionable. Not for me, the after it became clear that Lehman had col-
fads and fashions of this contemporary lapsed, he went to see Fuld in his office.
age. Indeed, I’m known affectionately to “Are you going to shoot me?” Fuld
some of my colleagues as “the Amish,” asked. No, replied White, and explained
for my shunning of the modern world. that he was there to thank him for the
Touch-screen technology and person- good times. “Give me a hug. I need a hug,”
less check-ins at airports haunt my responded an emotional Fuld, and
nightmares.” He finishes: “Perhaps I am embraced his astonished colleague. Then
just a man from a different time.” he started crying. “Kevin, you’re the first
Then wandered off and started person to say thank-you to me,” wept poor
embroidering a quilt, presumably. old Dick. And the last, one assumes.
 10 News CITYA.M. 27 AUGUST 2010

Playtech sees
William Hill is profits soar as
on track due it grows further

to World Cup
William Hill benefited from the football World Cup Picture: REUTERS GAMING

▲
ANALYST VIEWS: IS WILLIAM HILL IN LINE PLAYTECH, the online gaming soft-
ware firm, yesterday reported a jump
FOR A BIG WIN? Interviews by Steve Dinneen
in profit of 14 per cent to €37m
(£30m), as launches of Italian bingo
and French poker networks increased
its presence in new markets.
IVOR JONES | NUMIS
▲

GAMING Royal Ascot festival. Total revenue was up 29 per cent to

BY STEVE DINNEEN The average forecast for full-year
core profit stands at £258m.
BRITAIN’S biggest bookmaker Earlier in August, rival Ladbrokes
William Hill said it was on track to reported a five per cent increase in
meet full-year expectations after first half operating profit as a boost to
“
€72.9 and core profit rose 20 per cent
to €54.2.
The share price has continued to be weak and The firm now expects further for-
William Hill has fallen to a level where we believe it is right ward momentum after the acquisi-
tion of Virtue Fusion in February

reporting a one per cent rise in first
half earnings.
Reflecting industry trends, the
firm benefited from a major boost
from the World Cup. The company,
trading from the World Cup also off-
set unfavourable horseracing results,
especially at June’s Royal Ascot meet-
ing, where punters cleaned up.
Last month William Hill appoint-
”
to pick up shares for the medium-term. We are changing our 2010, which positions Playtech as the
recommendation to ‘add’ from ‘hold’. leading B2B bingo network provider,
with a pipeline of new licensee
prospects in UK and internationally.
GEETANJALI SHARMA | EXECUTION NOBLE It also announced an interim divi-

which operates over 2,300 betting
shops in the UK and Ireland, said
underlying profit rose to £135.6m
compared with £134.6m the year
before.
ed Gareth Davis as its new chair-
man. Davis, who recently retired as
chief executive of Imperial Tobacco,
will take the helm next week.
“
dend of 9.4 cents per share, an
increase of six per cent on the previ-
William Hill’s performance is impressive as its 26 per ous year.
cent group net revenue increase compares with eight per Chairman Roger Withers said: “We
have enjoyed a strong trading per-

The average forecast for first half
core profit had stood at £135.2m.
William Hill, which takes over 1m
bets a day, said results in the football
World Cup beat expectations, gener-
”
ANALYSIS l William Hill cent at Ladbrokes. Management is being cautious on the formance in the first half. Regulatory
185 p expectations given the larger consumer concerns. change across Europe is transforming
166.20 the market dynamics and opens up
180
26 Aug
many new opportunities.”
NIGEL PARSON | EVOLUTION SECURITIES He added: “Although the restric-

ating a gross win of £32.2m for the
tournament, which it said was a good
margin.
However, it also saw relatively poor
horseracing results in the period with
“
175 tions of the newly regulated French
market will, as anticipated, impact
170 William Hill’s results show no major surprises, with revenues in the second half, we have
165 flat Ebitda driven by online growth and a strong World Cup, a strong pipeline of new licensees
which we expect to more than offset

”
a comparatively weak Grand National offset by horseracing results and higher marketing costs. The this in 2011 and help maintain our
160
in April followed by a loss making 7 Jun 25 Jun 15 Jul 4 Aug retail cash generation supports a solid dividend yield. growth trajectory.”

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CITYA.M. 27 AUGUST 2010 News 11

NEWS | IN BRIEF
Avis Europe motors to a profit
Car rental firm Avis Europe posted its DON’T MISS THE AWARDS SHORTLIST
best first-half results in five years,
swinging to a profit on new contract
wins and cost controls, and signalled
BEGINNING TUESDAY
growth in markets in Asia and the
Middle East. January to June underly-
ing pre-tax profit was €0.3m (£0.2m)
compared with a loss of €13.9m a year
ago. Rental income rose 1.1 per cent to
€539m, and net debt dropped to €786m
at the end of June.

Hikma boosted by rise in sales

Hikma Pharmaceuticals said a strong
performance in US generics and product
launches helped its first-half revenue
rise 11 per cent and put it on track for
similar growth for the year. The Jordon-
based company, which sells off-patent
generic drugs under its own brands and
in-licensed products across the Middle
East and North Africa, and generics in
the US, reported sales of $357.7m
(£230.1m) and adjusted operating profit
of $73.2m, up 20 per cent.

IMI is bullish on margins

IMI posted a sharp rise in first-half
profit that beat market forecasts on
higher margins, which the British engi-
neer expects to go up further in the sec-
ond half, and said it sees new clean
energy laws driving growth in several
markets. For the January to June period,
IMI reported an adjusted pre-tax profit
of £136.4m, compared with £86.4m a
year ago. Operating margins were 15.7
per cent versus 10.9 per cent a year ago.
Adjusted earnings per share grew by 61
per cent to 29.8p. Revenue rose nearly
three per cent to £925m.

Strong growth for Filtrona

British plastic and fibre products suppli-
er Filtrona reported a 37 per cent rise in
its first-half adjusted pre-tax profit,
helped by a revenue rise in its higher
margin divisions, and forecast strong
growth in the second half. The company,
which develops and manufactures prod-
ucts for use in consumer, medical and
industrial markets, raised its interim div-
idend by 11.1 per cent to 3p. January to
June adjusted pre-tax profit was
£34.6m, compared with £25.3m a year from
ago. Revenue for the year was up 8.7
per cent at £247.6m.

New business wins aid Huntsworth

UK public relations firm Huntsworth
posted a nine per cent rise in its first-
half pre-tax profit, helped by new busi-
ness wins, and said it could weather
cuts to government spending.
Huntsworth, whose public relations
brands include Citigate, Grayling and
Red, raised its interim dividend by 20
per cent to 0.90p. For the January to
June period, Huntsworth reported a pre-
tax profit of £12m, compared with £11m
a year ago. Revenue increased 14 per
cent to £87m.

Salamander eyes Asia expansion Fantastic deals on this destination

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CITYA.M. 27 AUGUST 2010 Focus on Asil Nadir 13

Blast from the past as Nadir returns

TIME LINE | THE RISE AND FALL OF ASIL NADIR
● May 1941
Born in Lefka, northern Cyprus.
● 1960s
After studying in Istanbul, moves to the
UK to work in his father’s business.
● 1986
Wearwell, Nadir’s fashion business, floats
on the London stock exchange for £12m.
● 1990
Stockbrokers demand Nadir pay up for
trading in £3.6m worth of Polly Peck
shares and file a bankruptcy petition.
● 1991
Polly Peck collapses with debts of £1.3bn,
following a Serious Fraud Office probe.
● 1992
Nadir in a disputed hearing is set a £3.5m
bail after being charged with 66 counts
of false accounting and theft.
● 1993
Nadir flees to Cyprus two days before a
hearing for a £34m fraud trial.
● Late 1990s
Nadir runs a successful media company in
Cyprus, defying calls to return to Britain.
● 1 July 2010
Nadir promises to return to the UK if the
government guarantees he will not be
kept in custody.
● 26 August 2010
Nadir returns to British soil after 17 years.
● 3 September 2010
Trial is scheduled to begin.

Asil Nadir with his wife Nur landed in the UK yesterday Picture: REUTERS

Asil Nadir became a captain of industry

before his reputation was destroyed by
allegations of fraud, writes Steve Dinneen
A TORY Prime Minister is slashing the
budget, Iron Maiden are top of the
album chart and now exiled tycoon
Asil Nadir is back in the UK. It’s like
the 1980s never ended.
Nadir, 69, touched down to a media
scrum yesterday, accompanied by his
glamorous 26-year-old wife, Nur.
Tanned, wearing a double breasted
suit, only his thinning hair and
hunched gait belied his 17-year hia-
tus. As he awaits court proceedings in
September he will be living in a
£20,000-a-month Mayfair flat. It
seems he has lost none of his love for
the finer things in life.
In many ways, Nadir’s tale is a per-
fect reflection of the enterprise, glam-
our and excess of the 1980s. During
his heyday he was blessed with a
Midas touch. He took the reins at an
all but unheard of textiles firm called
Polly Peck, a small fashion house that
had shuffled along since 1940 with-
out ever causing a stir. Within five
years it was a FTSE 100 company, a
vast conglomerate, selling everything
from mineral water to electronics,
fashion to fruit.
By 1983, its stock had rocketed to a
staggering £35 a share. Some investors
received returns of more than a thou-
sand times their initial outlay.
Nadir became a public figure,
donating £500,000 to the Tory party,
befriending top politicians and brush-
ing shoulders with royals.
But even then, the company’s for-
tunes were sometimes rocky. Its share
price crashed when vital tax breaks
were withdrawn by the Turkish gov-
ernment, taking it years to recover.
By 1990 it had built back up to 450p
a share, valuing the firm at almost
£2bn. But Nadir was still convinced
his empire was undervalued and he
made an ill-fated attempt to take it
private, before unceremoniously
ditching the plans just a month later.
Then the tycoon reached his own,
very personal, nadir.
Later that year the Serious Fraud
Office (SFO) stepped in after being
tipped off about alleged money trans-
fers to Northern Cyprus. The compa-
ny lost practically its entire value
overnight.
Officers discovered millions pounds
worth of the firm’s assets had been
transferred into Nadir’s name, and
found dozens of unexplained transac-
tions, which Nadir claimed were per-
sonal banking services for Turkish
and Northern Cypriot businessmen.
Nadir was bankrupt and the firm
was placed in administration, while
the SFO began the three-year process
of trawling through the labyrinthine
company reports.
Rumours spread like wildfire about
the firm and it’s controversial chief
executive. Tales abounded that Nadir
kept 14 “girlfriends” on the company
books as special consultants.
The Midas touch became the kiss of
death as others were drawn into the
fray. Close friend Michael Mates, the
Northern Ireland secretary, who
believed Nadir was being set-up by
MI6, gave him a watch engraved:
“Don’t let the buggers get you down”.
Nadir was placed on bail worth
£3.5m, with the SFO convinced they
could stand up a £34m fraud case
against him, claiming he had stolen
from shareholders. But when the bail
elapsed in 1993, he made his infa-
mous bunk to his homeland, where
he remained a fugitive for 17 years.
It emerged during a court hearing
in July this year that Nadir was never,
legally speaking, on the run because
technically bail had never been grant-
ed in the first place.
Now, back in the UK his arrival will
force the Serious Fraud Office (SFO) to
pick up where it left off almost a
decade and a half ago. Fears are
already growing in legal circles that it
may prove near-but impossible to try
Nadir on multiple fraud allegations
given the time that has elapsed.
Crucial documents are believed to
have been lost and his lawyers are
expected to stress the practical obstal-
ces of undertaking a trial after so long.
 14 News
Price hike joy
at Kazakhmys
▲
MINING
BY MARION DAKERS
KAZAKH copper miner Kazakhmys
benefited from the rise in commodity
prices in the last six months, but
warned yesterday cost hikes could
catch up and dent future earnings.
Underlying profit rose 159 per cent
to $696m (£448m) in the six months
to July, though pre-tax profit dropped
5.2 per cent to $631m due to excep-
tional items.
The profit gains were lifted by
strong copper prices in particular.
The company said it sold its metal at
an average of $6,981 per tonne, up 73
per cent from last year.
The London-listed group said it
expects to feel an impact from costs
in diesel and steel as well as curren-
cies, and forecast that full-year gross
cash costs would rise to 180 to 200
cents per pound from 159 cents last
year.
“It’s likely to be towards the north
of that guidance because we are see-
ing some cost pressures,” said chief
financial officer Matthew Hird yester-
day, adding that cost increases for the
UK oil firms post mixed results Petropavlovsk cuts its gold
targets by less than feared
as they aim to widen exploration
▲
ENERGY
BY HARRY BANKS
BRITISH oil explorers Premier Oil and
Soco International flagged potential-
ly transformational drilling plans for
the second half of 2010 yesterday as
they unveiled mixed results despite
higher oil prices.
Soco said its exploration pro-
gramme, already under way in
Vietnam and the Democratic
Republic of Congo, could quadruple
rest of the year could hit five per cent.
The company said its smaller
power, gold and petroleum divisions
were also performing well.
Spending on new and existing proj-
ects rose by 48 per cent to $290m,
after a year of cash conservation.
Kazakhmys also confirmed it is
considering a secondary listing in
Hong Kong. “We want to raise our
profile in China. It is our core market.
This would be one way to do it,” said
chief executive Oleg Novachuk.
Shares closed up 5.2 per cent at
£11.29 yesterday making the mining
company the biggest gainer in the
FTSE 100.
ANALYSIS l Kazakhmys
1300 p
1250
1129.00
24 Aug
1200
1150
1100
1050
1000
950
900
7 Jun 25 Jun 15 Jul 4 Aug
its reserves base, while Premier said
drilling plans in the North Sea and
Indonesia could double its reserves.
“We’re very excited about them,”
Premier chief executive Simon
Lockett said.
The company said it was now more
confident of reaching its target of
producing 75,000 barrels of oil equiv-
alent per day (boepd) in 2012 and
chief financial officer Tony Durrant
said he expected production of over
100,000 boepd in 2015.
RIO TINTO BOSS SHRUGS OFF M&A TALK
RIO TINTO chief executive Tom Albanese told a conference in Brisbane yesterday the future
of the mining industry remains volatile, and that Rio will focus on production growth
rather than acquisitions. He has already dismissed the idea of bidding against rival BHP
Billiton for fertiliser firm Potash, saying: “I’m a miner, not a farmer”. Picture: REUTERS
Premier added that a 17 per cent
rise in first-half oil and gas produc-
tion and higher prices allowed it to
swing to a profit after tax of $62m
(£39.9m) from a loss of $27.3m.
Soco’s first-half net profit fell 62
per cent to $12.0m due to a 23 per
cent drop in production, higher taxes
and a rise in costs.
Analysts at Evolution Securities
said Premier remained a potential
takeover target but Lockett said he
had received no recent approaches.
▲
MINING
RUSSIAN miner Petropavlovsk cut its
gold production target for the year
by less than expected, helping to out-
weigh disappointing interim results.
It cut its gold output guidance by
around 40,000 ounces for the year, to
636,500 to 670,000 ounces.
Many analysts had already factored
in lower production, pushing the
shares down 11 per cent since the
group announced first-half output of
166,300 ounces in July.
“While disappointing, we believe
CITYA.M. 27 AUGUST 2010
Glencore moves
to divest $5bn
of gold assets
▲
COMMODITIES
THE WORLD’S biggest commodities
trader Glencore unveiled plans yester-
day to spin off or list its gold assets,
worth up to $5bn (£3.22bn), as it
reported a surge in first-half profits
due to strong metals prices.
Swiss-based Glencore has also
dropped the idea of finding a partner
for its Prodeco coal assets, a source
close to the situation said.
Privately-held Glencore, which is
preparing to become a listed compa-
ny after issuing a $2.2bn convertible
bond last year, said the planned sale
or flotation of its Kazzinc precious
metals producer and other assets
would help meet $1bn of planned dis-
posals, of which $400m had already
been agreed.
The divestment news came as
Glencore posted a 42 per cent jump in
first-half net profit to $1.56bn.
Revenues leapt more than half to
$70bn thanks to a threefold increase
in industrial activities, while trading
revenues rose slightly.
Net debt rose to $13.6bn from
$10.2bn, while debt coverage ratios
were largely unchanged due to
increased earnings and operating
cash flow, the company said.
fears over a miss and an even worse
production downgrade have been
priced in during the run-up to
results,” said Liberum Capital, adding
that it expected a material improve-
ment in the second half.
Shares closed 4.4 per cent up at
£10.19 in London trading yesterday.
The company posted a net loss of
$56.2m (£36.2m) for the six months
through June, compared to a profit of
$74.m in the same period last year.
Sales slid 8.6 per cent to $195.7m,
thanks to lower grades of precious
metal emerging from existing mines.
CITYA.M. 27 AUGUST 2010
Wall Street
hails better
jobless claims
▲
US ECONOMY
BY JESSICA MEAD
REPORTS of shorter jobless queues in
the United States gave Wall Street
some much-needed cheer yesterday
after poor housing market and
durable goods figures earlier this
week heightened fears of a double-dip
recession.
Initial jobless claims for state
unemployment benefits fell 31,000 to
a seasonally-adjusted 473,000 last
week, far fewer than the 490,000 that
the market had been expecting.
The better-than-expected data
boosted shares and helped the US dol-
lar to gain ground against the yen as
traders moved out of safe-haven assets
and bought back into the dollar.
“No one was bullish on the labour
market, but it was not as bearish as
some people had thought. Our call is
still that we are not heading toward a
double-dip,” said Thomas Simons, a
New York-based economist at
Jefferies.
Although traders welcomed the
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less bearish jobs data, analysts said
the claims are still much too high to
indicate a substantial shift in what
remains a weak labour market.
Analysts also pointed to the four-
week average of new claims, which is
considered to be a more reflective
measure of the underlying trends in
the US jobs market. This rose 3,250 to
486,750, which is the highest number
since late November.
The outlook for August’s headline
unemployment rate, which will be
published next Friday, is still extreme-
ly weak.
On average, US economists forecast
▲
110,000 layoffs, mostly Census-relat-
ed. This would put the jobless rate at
9.7 per cent.
FAST FACTS | A BAD WEEK FOR US DATA
● Both new and existing home sales fell at the
sharpest monthly pace in July since records
began in 1963.
● Durable goods orders were weak, supported
only by a rise in commercial aircraft orders.
Economic News
A majority of surveyors in London have seen demand rise Picture: Micha Theiner/ CITY A.M
London lettings boom as
demand pushes up rents
PROPERTY May to July.
BY KATIE HOPE The difficulty of securing mortgage
financing is continuing to persuade
LONDON’S lettings market remains higher numbers of people to rent,
buoyant with a surge in tenant rather than buy, found the survey,
demand pushing rents in the capital which says 76 per cent more survey-
higher. ors reported a rise in rents than a fall.
Forty three per cent more char- Just a year ago the picture was very
tered surveyors in London reported a different, as oversupply pushed rents
rise in demand for property rather down and more surveyors reported
than a fall, up from 37 per cent in the falling not rising rents. A majority, 68
first quarter, according to the latest per cent more surveyors expect rents
RICS residential lettings survey for to increase over the next quarter.
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Eurozone loans
to households
surge in July
EUROPEAN ECONOMY
▲
LOANS to European households and
businesses grew at the fastest pace in
more than a year in July as optimism
about the currency bloc’s economic
recovery grew, the European Central
Bank (ECB) reported yesterday.
The central bank said that lending
to the private sector increased 0.9 per
cent on July 2009, building on a 0.5
per cent rise in June.
Analysts said that the real bright
spot was that growth in lending for
house purchase – a leading indicator
of the Eurozone business cycle –
gained further momentum in July,
rising to 3.5 per cent from 3.3 per
cent. However, bank lending to firms
continued to contract with bank lend-
ing to non-financial firms down 1.3
per cent.
Eurozone broad money growth was
weak in July, expanding at just 0.2 per
cent on an annual basis, compared to
a consensus of 0.3 per cent. This indi-
cates that inflation pressures are like-
ly to remain muted over the
medium-term.
However, Klaus Baader at Societe
Generale noted that shorter-term
measures of M3 growth are above the
annual rate, indicating strengthening
momentum – over the past six
months, M3 is up 1.9 per cent on an
annualised basis.
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CITYA.M. 27 AUGUST 2010
Domestic banking aids Credit Amec is upbeat on future
as customers spend more
Agricole to swing to a profit
to a profit of €330m in the second
▲
BANKING
quarter from a loss of €87m a year
CREDIT Agricole, France’s third- earlier after it booked fewer losses on
largest banking group, said yesterday collateralised debt obligations, asset-
that growth in its domestic retail backed securities and other risky
business and a strong investment holdings.
banking performance more than off- Excluding the impact of those risky
set further losses in its Greek unit. assets, profit from ongoing opera-
Second-quarter net profit surged 89 tions in the division fell 23 per cent to
per cent to €379m (£310.4m), as net €401m as strong growth in financing
banking income grew 20 per cent to a activities helped partially offset the
record high of €5.47bn. sharp drop in trading revenues that
The group said its corporate and were reported across the industry in
investment banking division swung the second quarter.
City recruiter
says bankers
aren’t leaving
▲
RECRUITMENT
The group saw revenue for the peri-
BY EMMA SADOWSKI od come to £188.8m, marking a 33
ROBERT WALTERS, the chief execu- per cent hike on last year when the
tive at one of the City’s largest recruit- group reported £141.7m in income.
ment agencies, yesterday backtracked Walters said the group’s positive
on comments he made earlier this financial results were directly linked
year suggesting there would be an to the success of the company’s Asia
exodus of bankers from London. Pacific business.
Walters told City A.M. that his Fee income in the region rose by 81
recruitment business, Robert Walters, per cent to £34.4m from £19m.
had yet to see the mass exit of Trading conditions continued to be
bankers from the City that he predict- difficult in the UK and Europe, said
ed in March and suggested that a the recruiter, and the outlook
change in government meant that remained uncertain.
“people were sitting tight”. Up to 70 per cent of Robert Walter’s
“The coalition government is doing fees come from outside the UK.
all of the right things at the moment.
I don’t think we’ve seen a massive ANALYSIS l Robert Walters
exit of bankers yet as people are wait- 260 p 235.00
ing to see what the government is 250 26 Aug
going to do,” said Walters. 240
His comments come as the 230
recruiter saw a return to profitability
220
during the first six month of its
financial year after posting £5.2m in 210
profits. During the same period last 200
year Robert Walters reported losses of 190
£2.3m as the recruitment market 180
dried up. 7 Jun 25 Jun 15 Jul 4 Aug
CITY MOVES | WHO’S SWITCHING JOBS
McGrigors
The law firm’s London office has appointed
Karl Woolley as a partner in its finance prac-
tice. He is tasked with strengthening the
firm’s relationship with the City’s banks and
his experience in acquisition and funds
finance is expected to aid this expansion.
Woolley joins from SJ Berwin, where he is
currently a partner. Prior to joining SJ Berwin
in 2006, he was also a partner at Addleshaw
Goddard.
Premier Oil accountant with extensive experience
Jane Hinkley will join Premier’s board in international shipping, has previously
as a non-executive director on 1 held managing directorships at Navion
September. Hinkley, a qualified Shipping and Gotaas-Larsen Shipping
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
Shares of Credit Agricole closed up
2.7 per cent on Euronext’s Paris mar-
ket, having initially surged as much
as six per cent. The stock is still down
18 per cent since the start of the year.
The investment banking perform-
ance helped offset a €643m loss in the
group’s international retail banking
arm, which was driven by losses in its
Emporiki Bank business in Greece.
Credit Agricole took a €418m good-
will impairment charge on the busi-
ness after Emporiki set out its
restructuring plans in late June.
BEST OF THE BROKERS
ANALYSIS l BHP Billiton
p
1,802.00
2,000 26 Aug
1,900
1,800
1,700
16 Jun
BHP BILLITON
6 Jul 26 Jul 13 Aug
The mining group’s results were largely in
line, said Citigroup, with iron ore revenue
delivering a surprising jump to $6bn. The
broker maintained its “buy” rating with a
target price of £27.00. BHP’s recent eco-
nomic commentary has been cautious,
though Citi conceded that investors were
likely to focus on its bid for Potash Corp.
Savills cautious on 12 month outlook
▲
PROPERTY
GLOBAL property adviser Savills
maintained a cautious second-half
outlook and raised the spectre of a
flat performance in the first six
months of 2011 after posting much-
improved interim results yesterday.
Savills booked group revenue of
£304.4m for the first half, up 23 per
cent from the same period a year ago.
Group underlying profit advanced to
Corporation. She has also acted as an
independent director at Teekay GP, an
international marine services provider,
since 2005.
F&C Investments
The asset manager has announced the
appointment of Fiona Prendergast as a
client director in its institutional team,
with effect from 1 September. She
joins from Banquo Credit Management
where she has worked since 2004, her
most recent role being client relation-
ship manager, a position she has held
since 2007. Prendergast has also
worked at Merrill Lynch as a senior
specialist in product data services.
ENERGY
▲
OIL services and engineering group
Amec posted a 20 per cent rise in
first-half profits yesterday and said it
saw customer spending returning in
most of its key markets.
Amec’s first-half earnings before
interest, tax and amortisation rose to
£113.5m from £94.5m in the same
period last year.
Its order book grew eight per cent
to £3.5bn, it said, adding that the
Gulf of Mexico oil spill would have no
impact as it has a small exposure to
the region.
ANALYSIS l Heineken
€ 34.99
26 Aug
36.50
35.50
34.50
33.50
HEINEKEN
14 Jun 5 Jul 26 Jul
Deutsche Bank recently downgraded its
16 Aug
status to “hold” on the brewer, saying its
sales growth is among the weakest of its
peers with no prospect of a big improve-
ment. DB has raised its earnings per share
estimates for the year to €2.45, but
reduced its target share price to €40 pend-
ing signs of solid growth.
To appear in Best of the Brokers email your research to notes@cityam.com
£17.2m from £2.5m.
Likewise, Savills transaction advice
business saw revenues rise 57 per
cent to £116.6m, helping it swing to
an underlying profit before tax of
£9.4m from a loss of £7.6m a year ear-
lier.
Its property and facilities manage-
ment saw revenue rise eight per cent
to £113.7m, although underlying
profit before tax fell one per cent to
£7.1m.
Edited by Tom Day
Commerzbank
The German bank’s corporates and
markets division has added six new
members to its global FX business. In
London, Rahan Qureshi will join the for-
eign exchange desk as a senior trader.
Winston Quek has been appointed
head of FX sales for Asia, whilst Roger
Sieber joins FX sales for emerging mar-
kets in Zurich. The bank’s New York
branch has also added several new
hires: Joseph Volpicella and Kevin
Wilson join the FX sales and FX local
markets teams respectively, while Chia
Kang Cheam will take up the role of FX
local markets trader based in
Singapore.
News 17
“We see a story of gradual improve-
ment to our pipeline,” said chief
financial officer Ian McHoul.
Amec – whose customers operate
in the mining, oil and oil sands,
nuclear power and renewable energy
sectors – said in March that 2010
would be challenging, but saw a
return in the first half after winning
contracts with BP in Azerbaijan and
the US Navy.
Amec’s full-year earnings before
interest and tax are forecasted at
£228m. Amec’s shares yesterday
closed 5.1 per cent up at 891.5p.
ANALYSIS l Promethean
54
p
42.50
26 Aug
50
46
42
PROMETHEAN
16 Jun 6 Jul 26 Jul
Goldman Sachs repeated its “buy” recom-
13 Aug
mendation on the educational technology
firm, with a six-month price target of 235p.
However, the broker lowered its forecasts
for 2011 and 2012 in light of its more cau-
tious macro outlook. Key risks for the firm
include a slowdown in educational spend-
ing and rival products hitting sales.
Asked if Savills expected the first
half of 2011 to be broadly flat against
the same period in 2010, chief finan-
cial officer Simon Shaw said: “I think
that’s probably as fair a position as
you can take.”
“The concerns we are looking at
ahead are really coming in this
fourth quarter,” he said.
Savills said it would pay an
unchanged interim dividend of 3p
per share.
in association with
London Capital Group
The financial services firm has appoint-
ed Malcolm McCaig as a non-executive
director. McCaig has worked extensive-
ly in the sector, with experience in risk
management, regulatory compliance
and IT. He has been a partner at both
Ernst & Young and Deloitte, and held
senior management positions at
Prudential, National Australia Bank
and CIGNA. He is currently the chair-
man of Kent Reliance Building Society
and a House of Lords audit committee
member. His non-executive director
portfolio also includes Unum,
Renaissance Capital and Crest
Nicholson.
+44 (0)20 7557 7245
morganmckinley.com
 18 News CITYA.M. 27 AUGUST 2010

G4S sees opportunities in cuts Bloomsbury pins hopes

sector -- we can help the British gov- higher at £3.63bn pounds for the six
on Harry Potter reissue
▲

SUPPORT SERVICES
ernment through a difficult time.” months to the end of June. It
BY DAVID CROW Services companies with exposure increased its interim dividend by five

SECURITY services group G4S report-
ed a three per cent rise in first-half
profit, helped by strong performanc-
es at its emerging markets business-
es, and predicted UK government
spending cuts would fuel further
growth.
“The Middle East, India and large
parts of Asia all show good signs of
delivering double digit growth in the
second half,” chief executive Nick
Buckles said yesterday.
“There are also growth opportuni-
ties in the UK outsourced government
to contracts with the British govern- per cent to 3.17p.
ment are bracing themselves for
Downing Street’s October Spending
Review, which will outline the extent
of the coalition’s drive to cut public
spending.
However, G4S , which provides serv-
ices ranging from cash transportation
to security and protection, believes
spending cuts may boost sales in areas
where outsourcers would be hired to
achieve savings.
G4S posted an operating profit of
£238.1m on revenues four per cent
▲
PUBLISHING pipeline of new releases in the second
half of the year, which is traditionally
ANALYSIS l G4S BLOOMSBURY has seen profits during stronger for the publisher, will push
285 p
254.10 the first six months of the year plum- its figures back up.
280 26 Aug met by almost 50 per cent, as the pub- In November the group will re-
275 lishing house puts its hopes on a launch the Harry Potter series, which
270 November re-launch of the Harry will have new jackets, to coincide
265
Potter series to pull it back up to 2009 with the release of the latest film in
levels. the cinemas.
260
For the period ended 30 June, Meanwhile, revenue at the publish-
255 Bloomsbury saw profits of £949,000, er rose to £36.8m during the first six
250 which were 48 per cent down on last months of the year, a marginal
245 year when profits came to £1.8bn. increase from the £35.3m it posted in
7 Jun 25 Jun 15 Jul 4 Aug Bloomsbury is hoping that a 2009.

STV sees its

Battle for the advertising
next stage of revenue soar
TV heats up

▲
MEDIA
BY STEVE DINNEEN
ABC will now provide its content through BT Vision SCOTTISH media group STV expects
its advertising revenue to be up 10

Steve Dinneen looks at the increasingly competitive
internet TV battlefield, where viewers log on to tune in
DESPITE the ubiquity of the internet,
television viewing habits on both
sides of the Atlantic remain doggedly
traditional.
However, the battle for control of
the next generation of TV viewers is
hotting up. Manufacturers, such as
Samsung are already rolling out inter-
net-ready TVs as they prepare for a
monumental shift in viewing habits.
BBC’s hugely popular iPlayer on-
demand service has proved UK viewers
are prepared to log on to tune in.
Now a host of firms hope to take
the concept to the next level and,
more importantly, monetise it.
Apple, which has already revolu-
tionised the music market, hopes to
ride the crest of this wave. It is expect-
ed to next week announce a new serv-
ice allowing users to rent TV shows
and movies for as little as $1 (64p).
And yesterday Walt Disney-owned
ABC said yesterday it will launch its
first video-on-demand site outside the
US by streaming its content on BT
Vision.
CITY VIEWS: DO YOU THINK YOU WILL WATCH
MORE TV ONLINE?
The internet TV market-place in
the US is already highly competitive,
with Hulu, a joint venture between
Disney, News Corp and NBC
Universal, making in-roads on the
dominance of user-generated video
site YouTube. The potential value of
internet streaming has led to specula-
tion Hulu could be in line for an IPO
valuing the firm at a staggering $2bn.
So is this the beginning of the end
for traditional broadcasters? Ian
Maude, analyst with Enders Analysis,
is not so sure.
He told City A.M.: “At the moment
most content providers use internet
TV to support existing revenue rather
than generate it, by giving subscribers
free online access to shows.
“The margins can be very high
with online TV but the question is
whether there is enough appetite for
premium shows over the internet to
sustain it. I can see why providers are
getting involved – it could be a huge
revenue stream in the future. But it is
the first step in a very long road.”
per cent in the third quarter, below
the overall TV market, due to weak-
Interviews by Tom Day ness in its regional business.
The group says it expects the over-
all TV market to be up 17 per cent in
the third quarter but that it was
BEN ARAM | KENNEDYS hampered by its regional business
which will be down.
“I am from Germany and so I use such websites to catch up on Turnover in the period was up 20
per cent year-on-year at £50m, while
shows I have missed. I am also a frequent YouTube user. pre-tax profits rose to reach £6m.
Websites such as BBC iPlayer strike me as very useful and I It is now branching into new mar-
see myself using them more in the future.” kets, including a recent deal with
YouTube that will see its content syn-
dicated in exchange for a share of the
ad revenue.
TOM SPILLER | WILKINS BEAUMONT AND SUCKLING It will also launch a network of
hyper-local news websites in
“I will not be watching TV online in the future. Television fills a Scotland.
Chief executive Rob Woodward
particular void but I do not like it enough to go looking for it told City A.M.: “We’ve been through a
online.” turnaround. We are a new company
with a clear focus and a new sense of
purpose. It has been a very positive
beginning to the year. We have a very
clear organic strategy mapped out.”
TONY STARNS | NATWEST ITV said earlier this month that
first-half ad revenue was up 18 per
“I have Sky Plus and that suits all my TV needs. I would much cent due to a boost from the World
Cup and it is expected to be up
rather use my large television screen than a small computer around 15 per cent in the third quar-
screen.” ter before comparatives with 2009
toughen, making the firm more cau-
tious for the future.

Segro posts a rise in its property value Building outfit Carillion

as it eyes future industrial development welcomes era of austerity
drop on the continent. data centres, manufacturers, and been hit by the timing of projects in
▲

PROPERTY
▲

BY HARRY BANKS
INDUSTRIAL landlord Segro posted a
slight rise in the value of its proper-
ties yesterday and aims to restart new
developments amid returning inter-
est from potential tenants.
Segro, which has about two-thirds
of its properties in the UK and the
rest across continental Europe, said
its portfolio value grew 1.4 per cent in
the first half, with a 2.5 per cent rise
in the UK offsetting a 1.4 per cent
The group said its adjusted net
asset value per share edged up to
366p at the end of June 2010, from
362p at the end of December 2009,
while net rental income rose 11.3 per
cent to £144.3m from a year ago.
“We’ve seen capital values stabilis-
ing on average across continental
Europe, but within that Spain and
Hungary still struggle,” Segro chief
executive Ian Coull said.
Segro said it is receiving interest
from prospective tenants, such as
companies seeking alternative office
space, prompting it to restart its
development schemes.
The new developments, to be built
on Segro’s existing landbank, is
expected to add 155,000 square
metres of space and involve £145m of
capital expenditure, to be paid for
with existing credit facilities, the
company said.
It agreed to £271m of new and
extended bank facilities in the first
half.
PROPERTY
BRITISH building and support services
firm Carillion said first-half underlying
pre-tax profit rose 17 per cent to
£58.8m and it expected to benefit from
outsourcing as governments try to cut
costs.
Sales were down 11 per cent on last
year, however, to £2.5bn for the first
half as a result of the company dispos-
ing of its public private partnership
investments, Carillion said yesterday.
The company said sales had also
the Middle East and an increased focus
on margins over revenues.
Many construction and outsourcing
firms are awaiting the British govern-
ment’s spending review in October
which is expected to reveal the extent
of cuts to public spending.
“Our support services business is
well positioned to benefit from the
expected increase in government out-
sourcing of non-core services, particu-
larly as we move through 2011 into
2012 and 2013,” the company said.
 Markets&Investment 19

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .257.80 +3.70 314.80 246.90 COLT Group . . . . . . . . . . . . . . . . 112.00 +1.00 144.20 107.70 Investec . . . . . . . . . . . . . . . . . . .466.80 +5.60 565.00 411.50 SABMiller . . . . . . . . . . . . . . . . .1850.00 +3.00 2090.00 1394.00
3i Infrastructure . . . . . . . . . . . . . 113.20 +0.10 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .525.00 +8.50 574.50 322.40 ITV . . . . . . . . . . . . . . . . . . . . . . . .55.70 +0.35 71.75 41.04 Sage . . . . . . . . . . . . . . . . . . . . . .244.00 +4.70 260.50 208.20
A.B. Foods . . . . . . . . . . . . . . . .1052.00 +5.00 1096.00 785.50 Cookson . . . . . . . . . . . . . . . . . . .424.90 +12.60 616.00 347.60 Jardine Lloyd Thompson. . . . . . .582.50 +5.50 604.50 420.70 Sainsbury(J) . . . . . . . . . . . . . . . .358.60 –1.90 373.00 307.60
Aberdeen Asset Man . . . . . . . . . .133.60 +0.60 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1253.00 +23.00 1361.00 607.00 Johnson Matthey . . . . . . . . . . .1591.00 +41.00 1814.00 1302.00 Schroders . . . . . . . . . . . . . . . . .1355.00* +25.00 1450.00 1029.00
Admiral. . . . . . . . . . . . . . . . . . .1524.00 +12.00 1556.00 1003.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .446.50 +5.20 539.00 371.80 JPMorgan Emerg Mkts . . . . . . . .523.50 +1.50 549.00 397.00 Schroders N/V. . . . . . . . . . . . . .1093.00* +22.00 1185.00 864.00
Aegis . . . . . . . . . . . . . . . . . . . . . 111.40 +0.70 137.30 96.60 Dana Petroleum . . . . . . . . . . . .1806.00 — 1817.00 968.50 Kazakhmys . . . . . . . . . . . . . . . . 1129.00 +56.00 1634.00 901.50
Afren . . . . . . . . . . . . . . . . . . . . . .99.95 +3.35 111.00 60.50 Davis Service . . . . . . . . . . . . . . .365.80 +1.80 442.30 356.00 Kesa Electricals . . . . . . . . . . . . .130.50 +0.90 162.00 98.45 Scot. & Sthrn Energy. . . . . . . . . 1119.00* –7.00 1206.00 357.50
African Barr Gold . . . . . . . . . . . .571.50 +4.50 685.00 520.50 De La Rue . . . . . . . . . . . . . . . . . .699.00 +9.50 1021.00 666.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .202.80 +4.30 255.00 196.50 Scottish Mortgage. . . . . . . . . . . .566.00 –5.00 623.50 441.00
Aggreko . . . . . . . . . . . . . . . . . .1395.00 +49.00 1639.00 634.50 Debenhams . . . . . . . . . . . . . . . . .57.10 +1.05 90.00 51.95 Ladbrokes . . . . . . . . . . . . . . . . .130.40* –1.00 174.29 114.60 SEGRO . . . . . . . . . . . . . . . . . . . .264.60 –10.40 403.10 244.00
Alliance Trust . . . . . . . . . . . . . . .308.60 +1.00 352.70 286.40 Derwent London . . . . . . . . . . . .1377.00 –6.00 1490.00 1077.00 Lancashire Hldgs . . . . . . . . . . . .523.00 –2.50 545.00 416.70 Serco . . . . . . . . . . . . . . . . . . . . .588.50 +2.00 656.50 451.20
AMEC . . . . . . . . . . . . . . . . . . . . .891.50 +43.00 937.00 720.50 Dexion Absolute . . . . . . . . . . . . .137.30 +1.70 148.00 121.10 Land Securities . . . . . . . . . . . . . .598.50 –4.50 743.50 543.00 Severn Trent . . . . . . . . . . . . . . .1291.00 –10.00 1358.00 939.50
Amlin . . . . . . . . . . . . . . . . . . . . .407.10 –1.40 437.60 350.80 Diageo . . . . . . . . . . . . . . . . . . .1050.00 –16.00 1176.00 930.50 Legal & General . . . . . . . . . . . . . .91.05 +1.65 97.00 66.90 Shaftesbury . . . . . . . . . . . . . . . .405.90 –3.10 426.50 341.70
Anglo American . . . . . . . . . . . .2302.00* +48.00 3015.50 1846.50 Dimension Data . . . . . . . . . . . . .120.80 +0.80 125.50 56.50 Lloyds Banking Gp . . . . . . . . . . . .67.88 +1.88 77.61 45.30 Shire. . . . . . . . . . . . . . . . . . . . .1376.00 –11.00 1526.00 999.00
Antofagasta . . . . . . . . . . . . . . .1012.00 +34.50 1100.00 699.50 Domino’s Pizza . . . . . . . . . . . . . .413.50 +3.70 431.30 231.10 Logica . . . . . . . . . . . . . . . . . . . .109.60 +1.40 149.10 100.80 Smith & Nephew . . . . . . . . . . . . .540.50 –4.50 700.50 505.50
Aquarius Platinum . . . . . . . . . . .264.60 +2.70 490.00 211.50 Drax . . . . . . . . . . . . . . . . . . . . . .382.80 –2.70 496.50 321.50 London Stk Exchange . . . . . . . . .640.00 –1.50 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . . 1133.00 –2.00 1242.00 771.50
ARM Holdings . . . . . . . . . . . . . . .333.00 +1.20 370.00 123.30 DSG Intl . . . . . . . . . . . . . . . . . . . .23.97 –0.03 39.75 23.32 Lonmin . . . . . . . . . . . . . . . . . . .1509.00 +32.00 2198.00 1336.00 SOCO Intl . . . . . . . . . . . . . . . . . .450.40 +13.00 476.60 380.60
Arriva . . . . . . . . . . . . . . . . . . . . .773.00 — 782.50 428.20 Dunelm . . . . . . . . . . . . . . . . . . . .398.30 +17.00 438.40 250.70 Man . . . . . . . . . . . . . . . . . . . . . .206.70 +0.10 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .873.50 –6.50 949.00 653.00
Ashmore . . . . . . . . . . . . . . . . . . .287.00 +3.90 311.20 211.60 Easyjet . . . . . . . . . . . . . . . . . . . .351.20 –1.10 499.90 308.50 Marks & Spencer. . . . . . . . . . . . .340.60 +6.40 412.70 321.90
Astrazeneca . . . . . . . . . . . . . . .3216.50* –13.50 3376.00 2668.00 Edinburgh Inv Tst . . . . . . . . . . . .393.30 +0.90 412.40 327.40 Meggitt . . . . . . . . . . . . . . . . . . . .267.40* +2.30 331.00 202.20 Spirax-Sarco Eng . . . . . . . . . . .1565.00 +3.00 1617.00 947.00
Atkins(Ws) . . . . . . . . . . . . . . . . .684.50* +8.00 801.00 532.50 Electrocomponents . . . . . . . . . . .206.30 +0.60 245.00 142.90 Melrose . . . . . . . . . . . . . . . . . . .221.60 +9.10 251.50 139.30 Spirent Comms . . . . . . . . . . . . . .125.10* — 135.90 74.05
Autonomy Corp . . . . . . . . . . . .1571.00 +11.00 2012.00 1272.00 EnQuest . . . . . . . . . . . . . . . . . . . 116.20 –0.10 125.90 87.35 Mercantile IT . . . . . . . . . . . . . . . .912.00 +4.50 1002.00 822.50 Sports Direct Intl . . . . . . . . . . . . .104.00 +0.50 134.00 81.80
Aveva . . . . . . . . . . . . . . . . . . . .1394.00 –6.00 1419.00 805.00 Essar Energy . . . . . . . . . . . . . . .402.70 +7.00 475.90 358.50 Michael Page Intl. . . . . . . . . . . . .389.70 +3.90 461.50 309.90 SSL Intl . . . . . . . . . . . . . . . . . . . 1163.00* +3.00 1190.00 536.00
Aviva . . . . . . . . . . . . . . . . . . . . .378.30 +3.00 474.00 290.20 Eurasian Nat Res . . . . . . . . . . . .852.00* +25.00 1276.00 776.00 Millen & Copthorne . . . . . . . . . . .490.00* +7.30 514.50 321.40 St James’s Place . . . . . . . . . . . . .251.60* –1.40 296.90 203.40
Babcock International . . . . . . . . .500.00 +7.20 660.50 482.10 Euromoney Inst Inv . . . . . . . . . . .586.00 –4.00 630.00 258.00 Misys . . . . . . . . . . . . . . . . . . . . .271.70 +1.80 281.70 173.90 Stagecoach. . . . . . . . . . . . . . . . .170.20 +0.20 204.90 126.20
BAE Systems . . . . . . . . . . . . . . .300.10 +1.00 389.90 294.20 Experian . . . . . . . . . . . . . . . . . . .616.50 +10.50 664.50 489.00 Mitchells & Butlers . . . . . . . . . . .286.50 +2.10 343.90 228.30 Standard Chartered . . . . . . . . . .1707.00* +46.00 1927.00 1351.00
Balfour Beatty . . . . . . . . . . . . . . .235.10 — 328.85 228.60 F&C Comm Prop . . . . . . . . . . . . . .88.00* –1.50 96.80 79.00 MITIE . . . . . . . . . . . . . . . . . . . . .190.60 +1.90 281.70 187.80 Standard Life . . . . . . . . . . . . . . .200.60* +1.60 237.00 170.00
Barclays . . . . . . . . . . . . . . . . . . .302.00* +4.00 394.25 253.40 Ferrexpo . . . . . . . . . . . . . . . . . . .278.00* –0.20 396.20 138.00 Mondi . . . . . . . . . . . . . . . . . . . . .450.90* +3.90 491.30 278.00 SuperGrp . . . . . . . . . . . . . . . . . .995.00 +43.00 1100.00 499.00
Barratt Development . . . . . . . . . . .93.90 +2.45 193.31 89.10 FirstGroup . . . . . . . . . . . . . . . . .342.80 –0.70 448.80 331.20 Monks Inv Tst . . . . . . . . . . . . . . .293.90 +1.80 321.20 242.10 TalkTalk . . . . . . . . . . . . . . . . . . .125.00 +1.40 147.10 106.60
BBA Aviation . . . . . . . . . . . . . . .179.60* –0.90 220.00 136.60 Foreign & Col Inv Tst. . . . . . . . . .264.90* +1.10 297.20 232.70 Morrison Wm . . . . . . . . . . . . . . .287.80 –1.90 306.30 255.00 Talvivaara Mining . . . . . . . . . . . .390.90 –0.90 501.50 341.40
Bellway. . . . . . . . . . . . . . . . . . . .527.50 +14.50 927.50 510.00 Forth Ports . . . . . . . . . . . . . . . .1289.00 +1.00 1425.00 1020.00 Murray Intl Tst . . . . . . . . . . . . . . .824.50 –12.50 893.50 667.50 Tate & Lyle . . . . . . . . . . . . . . . . .414.10 +1.70 509.00 388.00
Berkeley . . . . . . . . . . . . . . . . . . .805.50 +0.50 984.00 735.00 Fresnillo . . . . . . . . . . . . . . . . . .1045.00* +47.50 1139.00 583.00 National Express. . . . . . . . . . . . .222.30 +1.10 258.60 155.86
BG . . . . . . . . . . . . . . . . . . . . . .1052.00* –7.00 1248.00 966.90 G4S . . . . . . . . . . . . . . . . . . . . . .254.10 +7.00 285.70 210.00 National Grid . . . . . . . . . . . . . . .537.00 +3.50 607.65 474.80 Taylor Wimpey . . . . . . . . . . . . . . .25.86 +0.91 54.90 24.29
BHP Billiton . . . . . . . . . . . . . . .1802.50 +35.50 2346.00 1527.50 Genesis Emerging Mkts Fd . . . . .462.50 +0.50 484.00 370.00 Next . . . . . . . . . . . . . . . . . . . . .1978.00 +46.00 2360.00 1601.00 Telecity . . . . . . . . . . . . . . . . . . . .464.40 –0.60 485.00 311.30
BlackRock Mining . . . . . . . . . . . .564.00 +7.00 654.50 420.00 GKN . . . . . . . . . . . . . . . . . . . . . .141.00* +2.50 155.00 100.20 Northumbrian Water . . . . . . . . . .326.40* –1.50 341.30 225.20 Templeton Emrg Mkts . . . . . . . . .539.50 +0.50 598.00 398.00
Bluecrest Allblue GBP . . . . . . . . .167.10 –0.30 169.00 137.60 GlaxoSmithKline . . . . . . . . . . . .1210.00* +4.50 1347.00 1088.00 Old Mutual . . . . . . . . . . . . . . . . .124.80 +1.90 130.20 86.85 Tesco . . . . . . . . . . . . . . . . . . . . .401.90 –0.80 454.90 366.30
Booker . . . . . . . . . . . . . . . . . . . . .43.25 –0.25 49.50 34.75 Great Portland Estates . . . . . . . .310.70 — 332.10 236.60 Pace . . . . . . . . . . . . . . . . . . . . . .209.00 +1.10 243.80 145.00 Thomas Cook . . . . . . . . . . . . . . .181.30 +0.10 277.20 172.30
BP . . . . . . . . . . . . . . . . . . . . . . .385.60 +10.45 658.20 296.00 Greene King . . . . . . . . . . . . . . . .404.70* +0.90 504.00 372.50 Partygaming . . . . . . . . . . . . . . . .261.70 +6.00 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .322.00 –0.70 325.70 155.00
Brit Insurance . . . . . . . . . . . . . . .956.50 +4.50 1017.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .479.00 –6.70 562.50 324.00 Pearson . . . . . . . . . . . . . . . . . . .948.50* +11.50 1069.00 715.50 Travis Perkins . . . . . . . . . . . . . . .751.00 +4.00 915.00 647.50
British Airways . . . . . . . . . . . . . .210.60 +1.90 255.80 172.40 Halma . . . . . . . . . . . . . . . . . . . . .270.10* +0.10 298.70 192.10 Pennon . . . . . . . . . . . . . . . . . . . .570.00* +5.00 613.00 440.40 TUI Travel . . . . . . . . . . . . . . . . . .199.10 +0.50 313.90 189.20
British Amer. Tob . . . . . . . . . . .2214.00* +33.00 2335.50 1832.00 Hammerson . . . . . . . . . . . . . . . .354.20* +2.00 460.30 332.20 Persimmon . . . . . . . . . . . . . . . . .364.90 +17.60 534.50 335.90 Tullett Prebon . . . . . . . . . . . . . . .371.00 — 436.20 261.20
British Empire Tst . . . . . . . . . . . .423.00 +0.50 467.90 338.50 Hargreaves Lansdown . . . . . . . .392.00 — 408.40 235.60 Petrofac . . . . . . . . . . . . . . . . . .1370.00 +15.00 1428.00 849.00 Tullow Oil . . . . . . . . . . . . . . . . .1259.00 +21.00 1375.00 979.50
British Land . . . . . . . . . . . . . . . .447.50 –1.90 531.00 416.00 Hays . . . . . . . . . . . . . . . . . . . . . . .89.90 +0.75 119.00 82.50 Petropavlovsk . . . . . . . . . . . . . .1019.00 +43.00 1370.00 685.00 UK Commercial Prop. . . . . . . . . . .77.10* –0.40 84.90 68.75
Britvic. . . . . . . . . . . . . . . . . . . . .474.70 –0.80 518.00 324.80 Henderson . . . . . . . . . . . . . . . . .121.70 +0.70 157.80 112.10 Premier Farnell . . . . . . . . . . . . . .217.50 +2.50 252.60 140.60 Ultra Electronics . . . . . . . . . . . .1624.00* +8.00 1718.00 1198.00
Brown(N.) . . . . . . . . . . . . . . . . . .224.50 +3.50 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .304.60* –0.40 585.00 298.20 Premier Oil . . . . . . . . . . . . . . . .1482.00 +2.00 1610.00 984.00
BSkyB . . . . . . . . . . . . . . . . . . . .706.00 +1.50 732.00 521.00 Hikma Pharma . . . . . . . . . . . . . .777.00 +42.50 785.00 440.00 Provident Financial . . . . . . . . . . .828.50 +4.00 986.00 795.00 Unilever . . . . . . . . . . . . . . . . . .1720.00* +32.00 2024.00 1610.00
BT . . . . . . . . . . . . . . . . . . . . . . .130.60* –2.00 151.00 108.40 Hiscox . . . . . . . . . . . . . . . . . . . .368.90 +8.10 371.10 299.60 Prudential . . . . . . . . . . . . . . . . . .553.00* +6.00 665.00 475.70 United Utilities . . . . . . . . . . . . . .563.00 –2.50 620.00 429.00
Bunzl . . . . . . . . . . . . . . . . . . . . .685.00 +3.00 784.50 570.00 Hochschild Mining . . . . . . . . . . .327.90 +1.90 370.60 220.00 PZ Cussons . . . . . . . . . . . . . . . .339.10* –0.70 373.20 210.50 Utd Business Media . . . . . . . . . .547.00* — 579.50 408.30
Burberry . . . . . . . . . . . . . . . . . . .839.00 +18.50 891.50 457.70 Home Retail . . . . . . . . . . . . . . . .215.50 +3.40 336.50 208.50 Qinetiq . . . . . . . . . . . . . . . . . . . .106.90 +2.00 179.10 103.50 Vedanta Resources . . . . . . . . . .1860.00 +21.00 2967.00 1616.00
Cable & Wire Comms . . . . . . . . . .56.80 –1.10 150.00 53.00 Homeserve . . . . . . . . . . . . . . . . .445.00 +8.90 488.20 435.40 Randgold Resources. . . . . . . . .5815.00 +75.00 6600.00 3456.00 Victrex . . . . . . . . . . . . . . . . . . .1090.00 +10.00 1320.00 687.00
Cable & Wire Wwide . . . . . . . . . . .62.60 –0.15 94.80 60.05 HSBC Hldgs . . . . . . . . . . . . . . . .632.90* +1.40 766.80 595.20 Reckitt Benckiser . . . . . . . . . . .3172.00* +42.00 3667.00 2765.00 Vodafone . . . . . . . . . . . . . . . . . .149.45 +0.05 155.50 126.50
Cairn Energy. . . . . . . . . . . . . . . .462.50 +13.10 497.60 306.80 Hunting . . . . . . . . . . . . . . . . . . .566.00 +12.00 659.50 429.10 Reed Elsevier . . . . . . . . . . . . . . .515.00* +0.50 566.00 435.40 Weir . . . . . . . . . . . . . . . . . . . . . 1149.00 +19.00 1275.00 599.00
Caledonia Invs . . . . . . . . . . . . .1543.00 –2.00 1759.00 1496.00 ICAP . . . . . . . . . . . . . . . . . . . . . .401.50 +5.30 478.30 291.70 Regus . . . . . . . . . . . . . . . . . . . . . .66.25 +0.20 125.50 64.05 WH Smith . . . . . . . . . . . . . . . . . .405.90 –0.60 551.00 392.20
Capita . . . . . . . . . . . . . . . . . . . . .701.50 +1.00 829.50 661.00 IG . . . . . . . . . . . . . . . . . . . . . . . .513.00 +4.50 517.00 291.00 Renishaw . . . . . . . . . . . . . . . . . .860.00 +10.00 915.50 475.00 Whitbread . . . . . . . . . . . . . . . . .1382.00 +14.00 1645.00 992.50
Capital & Counties . . . . . . . . . . . 115.50 –1.30 125.40 99.60 Imagination Tech Gp . . . . . . . . . .340.00 +2.00 362.00 149.75 Rentokil Initial . . . . . . . . . . . . . . . .93.05 +1.20 140.20 91.35 William Hill . . . . . . . . . . . . . . . . .166.70 –0.20 217.80 160.50
Capital Shopping Centres . . . . . .326.10 +0.70 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .657.50 –7.00 786.00 395.10 Resolution . . . . . . . . . . . . . . . . .248.00 +1.40 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .426.10* –3.10 487.00 380.00
Carillion . . . . . . . . . . . . . . . . . . .296.00 –2.20 361.90 263.90 Imperial Tobacco. . . . . . . . . . . .1814.00 –5.00 2159.00 1706.00 Rexam . . . . . . . . . . . . . . . . . . . .302.00 +9.00 348.80 252.80
Carnival . . . . . . . . . . . . . . . . . .2069.00* +32.00 2937.00 1804.00 Inchcape. . . . . . . . . . . . . . . . . . .254.30 +1.10 347.00 235.00 Rightmove . . . . . . . . . . . . . . . . .622.00 +25.50 729.00 456.90 Wolseley . . . . . . . . . . . . . . . . . .1240.00 +17.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .333.30* –0.70 394.60 303.20 Informa . . . . . . . . . . . . . . . . . . . .372.20* +0.20 439.40 263.30 Rio Tinto . . . . . . . . . . . . . . . . . .3177.00* +72.00 4104.00 2262.50 Wood Group (John). . . . . . . . . . .349.80 +4.20 411.70 277.00
Centamin Egypt . . . . . . . . . . . . .171.70 +1.90 174.75 80.00 Inmarsat . . . . . . . . . . . . . . . . . . .671.00 +10.00 831.00 503.00 RIT Capital Partners . . . . . . . . . 1111.00 –13.00 1215.00 927.00 WPP . . . . . . . . . . . . . . . . . . . . . .638.50 +5.50 744.00 489.00
Centrica . . . . . . . . . . . . . . . . . . .323.30 –1.60 333.10 233.80 Intercontl Hotels . . . . . . . . . . . .1012.00* +12.50 1244.00 721.00 Rolls Royce . . . . . . . . . . . . . . . .559.00 +6.00 631.50 434.50 Xstrata . . . . . . . . . . . . . . . . . . . .999.70 +23.60 1344.50 765.50
Charter Intl . . . . . . . . . . . . . . . . .583.50* +16.50 855.50 560.50 Intermediate Capital . . . . . . . . . .275.80 +0.40 332.00 233.50 Rotork . . . . . . . . . . . . . . . . . . .1527.00 +20.00 1569.00 939.50 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2627.00 +10.00 3711.00 2033.00 Intertek . . . . . . . . . . . . . . . . . . .1690.00 +15.00 1770.00 1136.00 Royal Bank Of Scot . . . . . . . . . . . .43.85 +0.86 58.95 28.25
Chloride Group . . . . . . . . . . . . . .373.60 –0.40 390.50 138.60 Intl Personal Fin . . . . . . . . . . . . .231.00 +2.40 283.00 134.75 Royal Dutch Shell A . . . . . . . . . 1711.50* +8.50 2068.50 1621.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .670.00 — 806.50 657.00 Intl Power . . . . . . . . . . . . . . . . . .364.60 –1.90 384.10 248.20 Royal Dutch Shell B . . . . . . . . .1652.00* +10.00 1997.50 1550.00
Cobham . . . . . . . . . . . . . . . . . . .208.00 +0.20 278.60 199.90 Invensys . . . . . . . . . . . . . . . . . . .230.60 –4.10 350.30 229.00 RSA Insurance . . . . . . . . . . . . . .122.80* +0.50 142.00 114.10 www.interactivedata.com

FTSE begins to recoup losses Economic worries

as miners and banks advance stall Wall St gains
Gold and silver prices steadied, but G4S rose 2.8 per cent after the secu- 9,985.81. The Standard & Poor’s 500
THELONDON remained near recent highs after the
US data, with precious metal miner
rity services group reported a rise in
first-half profit thanks to strong per- THENEW YORK Index shed 8.11 points, or 0.77 per
cent, to 1,047.22. The Nasdaq

REPORT Fresnillo a big riser, up 4.8 per cent.

Sector peers rallied after taking a
mauling on Wednesday, along with
formance at its Asia and Middle East
businesses, and said it expected more
growth in the second half.
REPORT Composite Index lost 22.85 points, or
1.07 per cent, to 2,118.69.
It was the first time the Dow has
metals prices, from gloomy reports Segro topped the FTSE 100 fallers’ closed below the psychologically

B U
RITAIN’S top share index rose on US housing and durable goods list, down 3.8 per cent, after the S stocks sagged yesterday and important 10,000 level since 6 July.
yesterday, boosted by a rebound orders. industrial property landlord reported the Dow closed below 10,000 a In his speech today Bernanke is
in commodity stocks and Xstrata was up 2.4 per cent after first-half results and only a small rise day ahead of an expected down- likely to discuss the uncertain
helped by better-than-expected major shareholder Glencore in asset value per share. Evolution ward revision in US second- prospects for the economy but isn’t
economic data from the US. International, the Swiss mining and Securities cut its rating to “neutral” quarter economic growth and a expected to give many clues about
The FTSE 100 closed up 46.44 commodities trading giant, posted from “add”, saying there was “no cat- major speech by Federal Reserve whether the US central bank will
points, or 0.9 per cent, at 5,155.84, as robust first-half results on strong alyst for equity outperformance”. chairman Ben Bernanke. pump more cash into the economy to
London’s blue chips rallied from a metals prices. Investors were awaiting economic Major technology shares were keep the recovery going.
seven-week closing low on BHP Billiton climbed 2.0 per cent as data out today, including second- among the biggest losers, with the After a recent spate of poor eco-
Wednesday. its chief executive flies to North quarter GDP estimates in the UK and Nasdaq falling more than the Dow nomic numbers, there were jitters
Weekly jobless claims in the United America this week to crank up the a speech from US Federal Reserve and S&P 500. Tech shares have been the GDP data could show the econo-
States declined more than expected charm offensive with Potash Corp Chairman Ben Bernanke for clues on seen as a proxy for economic growth. my is weaker than originally thought.
to a seasonally adjusted 473,000 in shareholders after dousing expecta- whether the Fed will support the Cisco Systems fell 2.4 per cent to The government’s preliminary read-
the latest week, well below market tions he would sweeten a $39bn bid economy with fresh injections of cash $20.70, while Intel gave up 1.6 per ing is expected to come in at 1.4 per
expectations for a drop to 490,000. for the fertiliser giant. in the coming months. cent at $18.18. cent, down from 2.4 per cent estimat-
“The weekly unemployment claims Energy stocks also recovered after A drop in shares of coal companies ed a month ago.
are just giving an excuse for this mar- falls in the previous session, rising ANALYSIS l FTSE 5,155.84 also weighed on the energy sector. In deal news, Dell raised its bid for
ket to have a bit of a technical with crude prices. 26 Aug Stocks initially rose on data show- data storage company 3PAR to $1.6bn,
5,500
bounce. I don’t really think there is Oil services and engineering group ing first-time claims for jobless bene- offering slightly more than bigger
5,400
much more in it than that,” said Amec added 5.1 per cent after it post- fits fell more than expected last week, rival Hewlett-Packard.
5,300
David Morrison, market strategist at ed a 20 per cent jump in profits. but the number was still too high to HP came back with a revised pro-
GFT Global. Banks also bounced, with 5,200 signal a shift in the weak labour mar- posal after the closing bell, sending
Kazakh copper miner Kazakhmys Germany’s economy continuing to 5,100 ket. The four-week average of new 3PAR’s shares up 7.2 percent to $27.90
was the top FTSE 100 riser, up 5.2 per set the pace in the euro zone. Bank 5,000 claims, regarded as a better gauge of in extended-hours trading. Shares of
cent after it reported a 130 per cent lending in the bloc is also showing 4,900 trends, rose to the highest since late 3PAR closed at $26.76. HP closed
rise in underlying first-half earnings signs of revival, data showed, but 4,800 November. down 0.1 per cent at $38.22, while
per share and said it was on track to Spain and Italy face a harder road to 4,700 The Dow Jones industrial average Dell ended down 0.3 per cent to
meet its full-year output goals. recovery. 7 Jun 25 Jun 15 Jul 4 Aug 24 Aug fell 74.25 points, or 0.74 per cent, to $11.75.
20 Investment | Personal Finance
A more subtle
way to show
Investing in art is
a more subtle way
of showing off
your wealth
your wealth
Picture: GETTY
Post-crisis, investors are ditching the boys’
toys for high-brow art, writes Jessica Mead
T
HERE was a time, not so very long
ago, that bling was in. Fast cars,
sleek super yachts, and private
planes were fundamental to living
the jet-set lifestyle which was the City
dream for much of the Noughties.
But then the markets collapsed and
sunning yourself on your yacht in the
Caribbean became little more than a
pipe dream. Many wealthy individuals
suffered badly from the collapse in equi-
ties in the autumn of 2008 while those
lucky few who had kept their wealth no
longer flaunted what they had.
However, the 2010 Merrill
Lynch/CapGemini World Wealth Report
showed that the population of high net
worth individuals (HNWIs) grew 17.1 per
cent in 2009, nearly recovering the
declines of 2008. And demand for so-
called passion investments started to
return in 2009, although outright global
Put your offshore banking in demand remained weaker than before
the crisis. But while the wealth might be
the hands of the expat experts back, the bling has gone. More and more
high net worth individuals are choosing
to invest in art and jewellery – a more
13°N – Rizal, Philippines subtle form of showing your wealth than
the traditional boys’ toys.
Ileana van der Linde, principal in
CapGemini’s wealth management prac-
9JGP[QWoTGNKXKPICPFYQTMKPICDTQCF[QWPGGFCDCPMVJCVWPFGTUVCPFU[QWTWPKSWG tice, says: “After the crisis, what is inter-
circumstances and has the expertise to help you manage, grow and protect your savings esting is how more high net worth
and wealth. You can trust HSBC Bank International in Jersey to offer you just that. individuals are still cautious about the
financial markets and we are starting to
r /WNVKEWTTGPE[QHHUJQTGUCXKPIUCPFKPXGUVOGPVUVQJGNR[QWCEJKGXG[QWT see a trend of investor-collectors emerge.
They were typically not interested in
ƂPCPEKCNCURKTCVKQPU such passion investments but are now
r 2QVGPVKCNVCZUCXKPIUFGRGPFKPIQP[QWTEKTEWOUVCPEGU looking for a safe haven for their money.”
She says that these investor-collectors
r 4GNCVKQPUJKRCPFYGCNVJOCPCIGTUYJQCTGURGEKCNKUVUKPVJGKTƂGNFOCP[ are still cautious and consequently they
of whom are expats are gravitating towards art, fine wine,
antiques and other memorabilia.
r #TCPIGQHUGTXKEGUVJCVOCMGOQXKPICPFNKXKPICDTQCFCUGCU[CURQUUKDNG “Many investors are looking for a pleas-
e.g. account set up even before you arrive in your new country* and personal ure that is not going to lose its value,
unlike automobiles and yachts,” says
travel security assistance
#PFYKVJ'ZRCV'ZRNQTGTVJGYQTNFoUNCTIGUVGZRCVUWTXG[PQYKPKVUTFEQPUGEWVKXG PERSONAL FINANCE NEWS
year, we have a unique insight into expat life across the globe. BY KATHLEEN BROOKS
6QDGPGƂVHTQOQWTGZRCVGZRGTVKUGQRGPCPQHHUJQTGCEEQWPVVQFC[
RECESSION FLAT SHARE ANYONE?
Call +44 (0) 1534 616079 According to a new survey by easyroom-
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Visit www.offshore.hsbc.com/am number of people looking for flat shares in
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*Available to HSBC Premier customers. HSBC Premier is available in 45 countries worldwide. Financial eligibility criteria applies. bring. The more people you
HSBC Bank International is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation,
Investment and Fund Services Businesses and licensed by the Guernsey Financial Services Commission for Banking, Collective share with the larger the sav-
Investment Schemes and Investment Business. Licensed by the Isle of Man Financial Supervision Commission. Deposits and ing. If you share with four peo-
KPXGUVOGPVUOCFGYKVJQWTQHƂEGUKPVJG%JCPPGN+UNCPFUCPFVJG+UNGQH/CPCTGPQVRTQVGEVGFD[VJGTWNGUOCFGWPFGTVJG7-oU
(KPCPEKCN5GTXKEGUCPF/CTMGVU#EVHQTVJGRTQVGEVKQPQHTGVCKNENKGPVUKPENWFKPIVJG7-(KPCPEKCN5GTXKEGU%QORGPUCVKQP5EJGOG ple you can save £5,225 on
CPFVJG7-oU(KPCPEKCN1ODWFUOCP5GTXKEG*QYGXGT*5$%$CPM+PVGTPCVKQPCN.KOKVGFKUCOGODGTQHVJG&GRQUKVQTU%QORGPUCVKQP rent, council tax and utility
Scheme as set out in the Banking (Depositors Compensation) (Jersey) Regulations 2009. HSBC Bank International Limited is a bills. This drops to £3,725 when
RCTVKEKRCPV KP VJG )WGTPUG[ $CPMKPI &GRQUKV %QORGPUCVKQP 5EJGOG6JG 5EJGOG QHHGTU RTQVGEVKQP HQT nSWCNKH[KPI FGRQUKVUo WR VQ
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&GRQUKVUOCFGYKVJQWTQHƂEGUKPVJG+UNGQH/CPCTGRTQVGEVGFD[VJG+UNGQH/CP%QORGPUCVKQPQH&GRQUKVQTU4GIWNCVKQPU(QT person.
further information on these Schemes, please visit the Important Information section on our website www.offshore.hsbc.com/1/2/
KORQTVCPVKPHQTOCVKQP%QRKGUQHNCVGUVCWFKVGFCEEQWPVUCTGCXCKNCDNGQPTGSWGUV#RRTQXGFHQTKUUWGKPVJG7-D[*5$%$CPMRNE6Q
help us to continually improve our service, and in the interest of security, we may monitor and/or record your communications with us. SIPP HOLDERS ARE DOING IT FOR
© HSBC Bank International Limited 2010. All Rights Reserved. MC8316/SJ/2206397/AC19238
THEMSELVES
Research from Barclays Stockbrokers
has found that people who choose to
CITYA.M. 27 AUGUST 2010
Michael Plummer, co-founder of Artvest
Partners, an independent art-finance
consulting firm that advises a range of
clients across the world on how to invest
in art and helps them to negotiate the
art market. He adds: “People are more
prudent about their passion investments
post-crash. We help clients determine if
they are spending their money in the
right place and advise about whether
that sector of the art market is a good
place to invest their money.”
There is also growing interest among
the Asian wealthy in fine French wines
and Scottish whiskies says CapGemini’s
van der Linde. These have been proving
popular thanks to their tangibility and
their lower entry prices. For example,
fine wine merchant Bordeaux Index says
that while demand is driven principally
by consumption, there is also a parallel
increase in collecting and investing. This
is expanding the market and making
fine wine a more tradable and robust
asset class, it says.
With wealthy individuals increasingly
choosing to invest in non-bankable
assets, it is important to have a global
overview of their total wealth. Many
wealth managers will take a holistic view
to your assets and can point you to spe-
cialists and insurance providers.
However, Swiss private bank Lombard
Odier has developed a global custody
product that fully integrates all your
assets from equities to collectibles in one
online platform. Gery Odermatt, head of
the bank’s global custody business devel-
opment, says: “Customers would like to
have all the elements included in one
report that gives them an overview on
everything.”
Passion items are not bought purely as
an investment, but the value and tangi-
bility of art and other memorabilia is cer-
tainly increasingly appealing.
invest in a Sipp do so because they want to
make their own investment decisions
about how their pension savings are man-
aged. Almost a quarter cited this as the
main reason for choosing a Sipp. One in
five used it as a way to supplement other
pension savings. However, further research
found that out of the 783 people it sur-
veyed, 12 per cent didn’t have a pension
and 13 per cent saw other long-term
investments such as a property as a saving
for the future.
CONSUMERS PAYING OFF MORE DEBT
Saving levels have plunged as consumers
rush to pay off their debt, research
from unbiased.co.uk, the independent
financial adviser, has found.
Savings levels fell by £7bn in the
second quarter of the year rela-
tive to the first three months.
It notes that this is the sec-
ond time since the onset of
the credit crunch that peo-
ple have rushed to pay off
debt and could be related to
fears of a double-dip recession.
 City Focus
Baking up a name for herself
Kathleen Brooks meets the
woman who has turned the
wedding cake into a piece of art
S
HE’S been called the “Bentley” of
cakes by Gordon Ramsay and was in
the kitchen of her flat when she
received the orders to make wedding
cakes for Madonna and Pierce Brosnan.
Mich Turner has spent the last decade
building the Little Venice Cake Company
(LVCC) that is now a by-word for luxury.
She partly credits her success with her
time as a pastry buyer for Knightsbridge
department store Harvey Nichols where
she worked from 1996: “This is where I
learned how far a brand can take you. Once
you describe yourself as premium, the bar
is raised.” It was the day of the 1999 total
eclipse that Turner decided to go out on
her own: “As the lights went off, the light
went on for me,” she says from her
Buckinghamshire home where she lives
with her husband and two young sons.
It takes a long time to become an
overnight success and after 10 years LVCC
is on the cusp of becoming a household
name. Turner recently signed licence deals
with both Tesco and Sainsbury’s and has
designed a range of baking equipment that
will be on sale from February next year.
“It’s not enough to make cakes every day.
You have to have the passion to drive the
business forward,” she says.
Her proudest moment was when she was
informed she was awarded an MBE, which
she will collect from the Queen (for whom
she has also made cakes) on 25 November.
Turner’s artistic flair has changed the
wedding cake from a rather-sad looking
thing pushed into a corner at a reception,
Start-ups affected
by internet debate
Net neutrality is essential for small business
to flourish in the UK, writes Kathleen Brooks
I
F YOU haven’t heard of the net neu-
trality debate then you soon will. The
debate centres on whether internet
service providers (ISPs) have the right
to charge different prices for various serv-
ices on the internet. For example, down-
loading a video might cost more than just
opening a web page.
The debate stepped up a gear in the US
last week when Google and Verizon told
the US Federal Communications
Commission (FCC) that they support pro-
posals to charge for certain internet serv-
ices. This has outraged supporters of net
neutrality, who believe that all content
delivery on the web should be charged at
the same rate. They argue it will create a
two-tier internet service with a fast-lane
for those who can afford it.
The FCC now has to make a decision.
Although it will only affect internet servic-
es in the US, the UK authorities will be
watching with interest. The government
has pledged to support net neutrality, but
it will be interesting to see if this position
can be maintained if US rules change.
Both the Federation of Small Businesses
| Entrepreneurs
Mich Turner, founder
of the Little Venice
Cake Company
to a lavish creation that takes centre stage.
But her business acumen has also helped
LVCC to flourish. She has always been cau-
tious about funding the business; it has no
debt and is owned 100 per cent by Turner.
“When I came out of university I had an
overdraft of £1,500, after I cleared that I
said I would never get into debt ever
again.” LVCC averages about 15 bespoke
orders a week. But it’s not a cheap business
to run: “We need to make £40,000 a month
just to stand still,” Turner says.
LVCC won the coveted Walpole Brand of
Tomorrow in 2009. This offers luxury com-
panies with turnover of less than £2m per
year advice on how to grow the business.
One change LVCC’s Walpole mentors sug-
gested was to scrap its online service.
“People just don’t like to buy luxury food
online,” says Turner.
Turner could talk about her business all
day and its success is all down to her hard
(FSB) and the Forum of Private Business
support net neutrality. “If we moved to a
system whereby connection speeds are
auctioned off to the highest bidders, small
firms would undoubtedly lose out as they
simply don’t have the cash reserves to
compete with big businesses,” says Chris
Gorman from the Forum of Private
Business.
The plans to charge for internet access
does have some benefits, says Jag Singh,
co-founder of MessageSpace, an online
advertising business. And Singh is not
alone. Some people argue that millions of
people downloading video all day slows
the whole system down, so people who do
this should pay for the extra bandwidth
they use.
However, Singh is concerned that it will
increase costs for businesses and entrepre-
neurs: “One of the trends in the start-up
movement is the reliance on cloud-com-
puting. If “toll roads” are placed all over
the internet, all these services powering
my product will cost more, and there will
come a point where it’s just going to be
too expensive for me to have to pay-to-
GOODMAN HITS 21
THE CITY
REVIEW PAGE,
TUESDAY’S PAPER
CONTROLLING COSTS
Q.
I am thinking about
selling my business in
the near future. How do I
go about finding a buyer?
Q&A
A.
The most common route is to get in
touch with corporate finance advisers,
says Jenny Robertson, senior associate
at Stevens & Bolton, a law firm. “The first thing
you need to do is to get a corporate finance
expert. They are usually from a boutique
finance company or an accountancy firm. Their
job is to line up potential suitors for your busi-
ness.” Robertson says that they usually have in-
depth knowledge of a sector and will know
who might be interested in buying your busi-
ness. It is almost impossible to go through this
process on your own, so your best bet is to find
a corporate finance firm that you trust will
work in your business’ best interests.
Q.
Can I do this and keep costs down?
A.
Advisers’ and lawyers’ fees tend to be
the biggest costs. While the adviser is
usually dealing with the commercial
work. She gets up at 4.50am, has breakfast side and ensuring you get the best price possi-
with her children, and drives them to ble for your business, the lawyers deal with
school before heading into her Marylebone the legal side of the transaction. Usually you
office for 9am. Building a successful brand will be charged a percentage of the sale price,
has had its sacrifices. But she understands which is negotiated at the start with the cor-
what it takes: “We don’t spend our week- porate expert. Lawyers will usually charge by
ends socialising with friends and we’ve the hour for their time. Robertson says that
probably missed out on some of the holi- there are ways to keep the costs down. The
days that other people would take, but I easiest way to do this is to ensure that the
have no regrets. We have this business that process will run smoothly and as quickly as
we have built, it wasn’t a family business, possible, since time really does cost a lot of
we did it by ourselves.” money. This means getting your house in order
before you even think about selling your busi-
CV | MICH TURNER ness. The key thing that tend to hold up a
process is due diligence. “The most important
Age: 40 Reading: The Girl With The thing to the buyer is to make sure that the
Lives: Buckinghamshire Dragoon Tattoo, by Stieg Larsson business has customers, so it is vital that com-
mercial contracts are in place and up-to-date.
Studied: University of Surrey, Favourite cake: “The Queen If you have let commercial contracts expire
BSc in food science and nutrition Elizabeth date cake. I made it for then you need to replace them as soon as pos-
Car you drive: Land Rover the Queen’s birthday.” sible. Also, employee contracts need to be up-
to-date and employee terms and conditions
should be in place.” Robertson says that if there
is a problem with contracts then it can delay
the whole process: “If a due diligence issue
crops up a week before completion then that
can set the whole process back by at least a
few weeks and that is when the costs start to
add up.” So being as prepared as you possibly
can be before the process starts is the first
way to limit costs. The second is to pick your
law firm carefully. Robertson says that a small
business with turnover of between £5m-£10m
doesn’t need to hire a Magic Circle law firm. A
smaller firm or one that is based outside of the
City can be just as good and they are a fraction
of the cost. Some of the City’s top firms can
charge upwards of £600 an hour for a partner
and £300 an hour for a newly qualified lawyer
so there are savings there. However, Robertson
recommends that you check out what size law
firm your prospective buyer is using before you
make your own choice: “The corporate finance
adviser should be able to give you a steer on
whether the firm will run a deal on a hardline
basis or if they tend to be more relaxed. If the
buyer is using one of the Magic Circle then you
don’t want to use a small high street law firm
as it could put you at a disadvantage.”
Q.
How should I manage the whole
process?
A.
Keeping on top of the process and
knowing what
should be
happening and
when is key, says
Google and Verizon play. This means that in the long run I Robertson. Selling
have said they won’t be able to create jobs. No one wins your business is a
support charging under that scenario, in my opinion.” great achievement, just
more for certain But Singh does not think the UK will fol- don’t let the fees eat up all
internet services in low the example of the US if the FCC of your profits.
the US decides to abandon net neutrality: “Ofcom
Picture: REUTERS is a lot stronger from a regulatory perspec- Kathleen Brooks
tive than the FCC. I just don’t think it
would let this sort of thing become
enforceable,” adds Singh.
 Living
22 CITYA.M. 27 AUGUST 2010

| Second Homes

STRATHKYLE
RIVERSIDE LODGE, ARDGAY
COTTAGE, Price: £1.1m
BEAULY This three-bed hunting
Price: £450,000 lodge from 1871 comes
This secluded three- with a 183-acre plot of
bedroom property is woodland, pasture and
set amid three acress a private trout-fishing
of grassy meadow loch. It has a gatehouse
and comes with two with wood-panelled
other cottages that dining room and is set
can be rented out to between a tranquil
holidaymakers. The pond and thick alpine
main cottage fea- forest. It’s nine miles
tures an open fire in from the village of
its living room and Ardgay, and 54 miles to
offers stunning views Inverness airport.
over the River Beauly, Contact: 01463 719
home to excellent 171. www.struttand-
salmon fishing. It is parker.com
within eight miles of
the bustling village of
Beauly and 17 miles
to Inverness (one
hour flight to LOWER DERRAID,
London). SPEYSIDE
Contact: Price: £300,000
01463 723 500. Set amid wildflower
www.macan- meadows, this three-
drewandjenkins.co.uk bedroom cottage fea-
tures exposed stonework
above its cosy fireplace,
as well as a sunny mas-

Why your dream

ter bedroom with bal-
cony. Large windows
overlooking the beautiful
River Spey – one of the
best salmon-fishing
rivers in Scotland. It is

home may just be three miles from

Grantown-on-Spey and
30 miles from Inverness.
Contact: 01463 719 171.
www.struttandparker.com

up in Scotland’s WATERNISH
ESTATE, ISLE OF
SKYE

northern reaches Price: £1,550,000

The Waternish Estate
extends to 255 acres of pas-
ture, mature woodland
(including a bluebell wood),
a burn with old waterwheel
and a mile of Skye coastline.
Rural Scottish properties often come with a The main house, with five
bedrooms, has its original
terrific spread of acreage, writes Juliet Samuel courtyard and belltower
steeple still in tact and fea-
tures solid oak doors as well
as fully modern fittings

T
HE number of holiday homes in the
UK is on the rise, according to
research by Knight Frank. After
declining in 2008, the number of
British second homes swelled 2.6 per cent
last year and is set to rise another 2 per cent
this year.
So with demand once again on the up,
buyers should be on the lookout for homes
that will retain both their peaceful appeal
and their value. North-western Scotland is
one of the few areas where it is not only
possible to buy a rustic home set amid pris-
tine scenery, but to buy a sizeable chunk of
the scenery as well.
Strutt & Parker’s Suzanne Moss says that
it is not hard to find acreage attached to a
rural Scottish home: “A lot of properties
have land with them. To get something
similar down south, you’re paying double
the money.” Often it is not just a matter of
buying a big garden. Even many of the
lowliest cottages come with three to 30
acres of the surrounding land and some
hunting lodges come with hundreds or
even thousands. In places like Sutherland,
the Cairngorns, along the Spey River and
the Isle of Skye, that can mean acres of
heather-clad moorland, wildflower mead-
ows and woodland overlooking a misty val-
ley or loch.
Despite these attractions, the Scottish
property market is still sluggish in many
places: a lot of houses have come onto the throughout. Rooms have
market and stayed there, which gives buy- sweeping sea views. It is
ers both choice and a discount. However, in 132 miles to Inverness.
a slow market it’s not just a matter of snap- Contact: 0131 247 3720.
ping up a bargain; it’s important to make www.savills.com
sure the home you buy will retain its
appeal – and therefore its value.
The key here, says Chris Hall of
Edinburgh estate agent Rettie, is to only go
for the exceptional: “When something that ALLT-A-BHRUAIS,
is manifestly good pops up, people are still SPEAN BRIDGE
recognising quality.” By that, he means Price: £520,000
homes with that rare combination of char- Designed by the eminent
acter, tranquility and a reasonably conven- Edinburgh architect Ian
ient transport connection. This can be a Gordon Linsday in 1937,
difficult balancing act for buyers: even a this four-bedroom house
beautiful old stone-built cottage will lose its sits in 3.2 acres of land
value if it is too close to a road or if a wind with spectacular views of
farm is installed nearby. But if you do find a the highest Highland peaks.
home that fits that bill, it is likely to be a Many of the rooms retain
bargain given its investment value. Estate original features such as a
agent GKD Galbraith’s Sue Bourne says: bell-pull system on the wall.
“The demand for traditional cottages in The grounds include a
beautiful villages far outstrips the supply.” small burn, a wildflower
For buyers who have had enough of eke- meadow and vegetable
ing out narrow spaces in cities or tourist garden. It is one mile to the
hotspots, Scotland is the perfect antidote. village of Spean Bridge and
And once you’ve bought the place, Rettie’s 56 miles to Inverness.
Chris Hall says it’s simple: “The right quali-
ty of property will look after you if you look
Contact: 0131 220 4150.
after it.” www.rettie.co.uk
 PRIME AVENUE
B A LT I M O R E W H A R F , LO N D O N E 1 4
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PRIME ARCHITECTURE: Designed by Skidmore Owings and Merrill, master planners of Canary Wharf
PRIME SPECIFICATION: Custom designed kitchens, luxury marble bathrooms, full height windows, luxury flooring
PRIME FACILITIES: Concierge services, valet parking, 24 hour security, retail and restaurant
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76 Marsh Wall
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Tel: 0800 404 8855 A Ballymore Development
 24 Living | The Knowledge CITYA.M. 27 AUGUST 2010

FOCUS ON: WEMBLEY, HA9 SELLING

Q&A
BY JESSICA MEAD

MIDHOLM
£470,000
It’s in need of some mod-
ernisation, but this three-
Russell Hunt
CENTRAL APARTMENTS MANAGING DIRECTOR,
From £230,000 bed detached property is PROPERTY HUNT
Ideal for first-time buyers, this an ideal family home.
new development comprises Located in a popular resi- Dear Russell, with property prices
113 apartments. All flats are
open-plan and have their own
balconies with views as far as
dential area, it has a back
garden, off-street parking
and a garage.
Q. projected to fall and interest rates
forecast to rise, should I buy?

the London Eye. Contact: St Contact: Winkworth on

A.
As with anything to do with property, it
Modwen’s on 0844 371 1301, 020 8904 8822 , is all about timing. The latest surveys –
www.wembley-central.co.uk www.winkworth.co.uk whether they are from the major
lenders, the high-street banks or the online prop-
erty portals –are all pointing to further falls; they
just differ in the magnitude of the forecast drop.
You have to look at your circumstances and
what you want to buy. Rates are still low, so
you need to agree a mortgage at a sensible
rate for as long as you can. Once you have
NEED TO KNOW | WEMBLEY agreed your finances, start looking and do
your research. There are so many microcosms
Commuting: Underground services are Greek restaurant that has been popular of the property market so decide on your area
and research the properties available.
HARROWDENE RD provided on the Metropolitan line and for more than two decades. The Swan Sometimes there have been properties sitting
£3.2m Jubilee line at Wembley Park, taking is a popular pub that offers live music on the market for a while – find out if they
An impressive property under half an hour to get to Waterloo. with good food and beer. have been reduced. Just because it hasn’t been
with eight bedrooms, a selling, it doesn’t mean it is a dud property –
spacious living area, a roof Schools: Lyon Park School is a good Leisure: Wembley Stadium regularly perhaps the agents have lost interest in it,
terrace, an extensive gar- primary. Alperton Community School sees major sporting events, with maybe it is overpriced or needs a lick of paint.
den and a pool. What has had consistently strong examina- Wembley Arena playing host to a vari-
more could you want? Dear Russell, what features should I
Contact: Foxtons on 020
8429 6600, www.fox-
tons.co.uk
tion results. Buxlow Preparatory
School is an independent school for
four to 11-year-olds.
ety of concerts and other entertain-
ments. Wembley Central Square is
being redeveloped with new leisure and
Q. look out for when purchasing a buy-
to-let?
retail facilities.
A.
The first piece of advice is that you
Crime: Figures are significantly higher should not look at it from a perspective
than the national average. Famous people: Rock out with Charlie of would I want to live there. You need
Watts of The Rolling Stones and Lady to take that out of the equation and think ration-
Restaurants and Pubs: Arena is a Sovereign. ally about who would want to live there. You
should try to buy a property where the bed-
rooms are as equal as possible. If there are
only two bedrooms, then tenants prefer not to
CURRENT MORTGAGE DEALS Source: MoneySupermarket.com share a bathroom – look for places with either
two bathrooms or an en suite. You should
always offer either furnished or unfurnished.
Lender Fixed/Flexible Rate Until Standard Rate APR Maximum Loan It might seem obvious, but you want to buy
(per cent) (per cent) (per cent) to Value (per cent) somewhere where the building is in good repair
and has a long lease. You should also find out if
the property has a good rental track record. If it
HSBC Flexible 2.19 Term 2.19 2.2 60 has never been let out before, try to find out
what similar properties in the area have rented
NatWest Flexible 2.19 To Nov 2012 4 4 60 for. Aim for quieter residential roads and if you
do look at a lower ground floor flat, make sure it
First Direct Flexible 2.29 Term 2.3 2.3 65 is light. If the flat is on a higher floor, there needs
ING Direct Flexible 2.29 2 years 3.5 3.5 60 to be a lift, but remember that a lift and a porter
entail higher management charges.
The Co-operative Bank Flexible 2.49 To Nov 2013 4.24 3.9 75 You should always be a bit conservative on
your rental projections. The service charge,
ING Direct Fixed 2.79 To Nov 2012 3.5 3.5 60 which you are liable for, is an important cost
and you need to look at the potential manage-
Post Office Fixed 2.85 To Sep 2012 3.49 3.6 65 ment charges and the letting fee, which can
Santander Fixed 2.85 To Oct 2012 4.24 4.2 60 both eat into your return.
Russell Hunt is managing director of
Leeds BS Fixed 3.65 To Jul 2013 5.69 5.5 75 Property Hunt, a search agent for London and
the Home Counties. www.property-hunt.co.uk
Market Harborough BS Fixed 3.69 To Aug 2013 5.49 5.1 80

PROPERTY NEWS
BY JESSICA MEAD

BACK TO THE BOOM YEARS FOR PUTNEY
The property boom years are back, at least in Putney. An
eight-bedroom house in Heathview Gardens has just sold
for £5.3m, one of the highest prices ever paid for a prop-
erty in SW15. Russell White, franchisee of Winkworth
Putney who handled the sale, said: “The Putney sales
market has enjoyed a strong pick-up in the first half of
2010. The sale of Heathview Gardens demonstrates that
confidence has come back to the market since the tur-
moil of the financial markets in 2007.”
INCREASE IN SUPPLY TO DRIVE UP ACTIVITY
The number of properties coming onto the market in cen-
tral London has risen 28 per cent in the past six months
while demand has stayed strong. Peter Rollings, manag-
ing director of Marsh & Parsons, said: “The rise in supply
of homes for sale is a healthy development for the
London property market. There is now a greater balance
between supply and demand for properties and this will
encourage more activity in the housing market and see
house prices rise at a more sustainable pace.”
RICS: POSITIVE OUTLOOK FOR UK RENTS
Buy-to-let investors will be cheering the RICS’s positive
outlook for rents: 33 per cent more surveyors expect
rents to increase in the next quarter than fall. This is sup-
ported by rising tenant demand in the three months to
July, according to the RICS Residential Lettings Survey
out today. The survey shows 26 per cent more agents
reporting a rise in demand for property rather than a fall.
Encouragingly, the pace of decline in new landlord
instructions is moderating.
LEEDS’ NEW FIVE-YEAR FIXED RATE MORTGAGE
Uncertainty about the future for interest rates is prompt-
ing more prospective buyers to take out fixed-rate mort-
gages. Leeds Building Society has just launched a new
five-year fixed mortgage range available from 3.94 per
cent for those with a 40 per cent deposit. Those with
smaller deposits can pay a slightly higher monthly rate.
The mortgage is fully portable should customers wish to
move and 10 per cent capital repayments are allowed
each year without penalty.
 Now view it for yourself
New 8th floor show apartments open
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>LOH]LQ\Z[SH\UJOLK[OL[OÅVVYZOV^
HWHY[TLU[Z^OPJOT\Z[ILZLLUMVY[OL
ZWLJ[HJ\SHY]PL^ZIV[OPUZPKLHUKV\[
*HSSUV^MVYM\Y[OLYPUMVYTH[PVU
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 HUKJHMLZ
 >LTISL`*LU[YHSZ[H[PVUVU[OLKVVYZ[LW
 >LZ[,UKTPUZ

7YPJLZMYVTQ\Z[£199,995*
:OV^(WHY[TLU[HUK4HYRL[PUN:\P[L
SVJH[LKVU>LTISL`/PNO9VHK/( (.
6WLUMYVTHT[VWTKHPS`
Images depict show apartment, external and view from Wembley Central. *Prices are correct at the time of going to press.

Call 0844 3711301

or visit wembley-central.co.uk
Wembley
Central
A joint venture regenerating Wembley Town Centre

www.apdinteriors.com

No need to move, improve.

Is your home looking tired?
In need of a makeover?
Need to entertain in a beautiful
new kitchen or lounge?

Then make the most of our range Increase the value of your
of services and have the home home by up to 22%* by
you want this summer without investing in any one of our
breaking the bank. services. For a free consultation
quote APDCAM.
We can deliver a complete home
renovation, extensions or loft/
basement conversions, interior
design or the redesign of a single
room, without disrupting your
busy life.

Tel. 020 7687 6288 Twitter. @andrewdunning

Email. info@apdinteriors.com Web. www.apdinteriors.com

*Nationwide Building Society.

 Lifestyle | Fashion
26
Looking good, kid: autumn style
Cute patterns and grown-up
looks are both par for the
course, says Zoe Strimpel
W
HEN I was a child in the US, back-to-school
fashion (we didn’t have uniforms) was a mat-
ter of two new scrunchie hairbands and a new
pair of spandex rose-patterned cycle shorts.
M/02B
TheMeganeExperiment.com
Can a car change a town?
Menton [Côte d’Azur]
a. Kisses per hour .......... 30
b. No. of Mégane ............ 21
30 30
Data source: Knowledge & Trends Menton Survey, July 2010. Knowledge & Trends Gisburn Survey, July 2010.
0 0
a. b.
CITYA.M. 27 AUGUST 2010
Oh, and a side pony tail. These days, kids from middle
class families are expected to be almost as fashionable as
their parents. More so even, if the September launch of
a babies and kids version of super-luxury online retailer
Net a Porter, means anything. Your kids, from babies to
teens, can wear Burberry, Dior, Prada and Armani.
But whether you’re in the market for trendy togs or
just plain fun for your kids, there are lots of brilliant
ideas out there for jazzing up their autumnwear. From
funky rucksacks, journals and watches for school, to
eye-catching clothes for the weekend, there’s something
for every budget out there.
Kit your kids out in autumn’s finest. Picture: GETTY
Gisburn [Lancashire] 1 2
c. Kisses per hour ........... 1
d. No. of Mégane ............. 0
4
30 30
5
0 0
6
7
8
c. d.
10
1 Eiffel Tower striped jumper with sequin, Tu at
Sainsburys, from £10, www2.sainsburys.co.uk 2 Black Essentials polo
9
shirt for boys, Christian Dior, £85, www.diorcouture.com/uk 3 Pink Resin Hello Kitty
watch, Victoria Couture, £139, www.harrods.com 4 Long-sleeved double layer dress,
Diesel, £56, www.houseoffraser.co.uk 5 Girls’ straw boater, John Lewis, £21,
www.johnlewis.com 6 Gabardine trench coat, Burberry, £350, uk.burberry.com
7 Floral backpack, Cath Kidston, £25, www.cathkidston.com 8 Harrods Luxe calf-
leather journals, from £29.95, www.harrods.com Grey polka dot cord trousers, John
Lewis, £12-£13, www.johnlewis.com 10 Harrods French sole pumps, from £115,
www.harrods.com
CITYA.M. 27 AUGUST 2010 Lifestyle | TV& Games 27

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK

TERRESTRIAL
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7pm The One Show 7pm Who Do You 7pm Emmerdale: Jimmy 7pm Channel 4 News 6.25pm Live from Studio Five
7.30pm A Question of Sport; Think You Are? tells Carl he wants to work 7.25pm 4thought.tv 7pm Five News at 7
BBC News: Regional News 8pm Mastermind in the pub full-time. 7.30pm The Incubator 7.15pm Cricket on Five
8pm EastEnders 8.30pm Gardeners’ World 7.30pm Coronation Street 8pm A Place in the Sun: 8pm Police Interceptors:
8.30pm QI 9pm Home Movie Roadshow: 8pm Dickinson’s Real Deal Home or Away World Cup fever hits
9pm My Family A colour film of the 8.30pm Coronation Street 9pm Ultimate Big Brother Essex; Five News at 9
9.30pm Outnumbered Festival of Britain. 9pm Doc Martin 10pm CHOICE Pete Versus Life 9pm The Mentalist
10pm BBC News 10pm Roger and Val 10pm ITV News at Ten 10.35pm Ultimate Big Brother 10pm Law & Order:
10.25pm Regional News Have Just Got In 10.30pm London News 11.25pm Stand Up for the Special Victims Unit WOULD I LIE TO YOU?
10.35pm CHOICE 10.30pm Newsnight 10.35pm UEFA Super BBC1, 10.35PM
Week Best Bits 11pm CSI: NY
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SKY SPORTS 1 12.30am Ladies European Tour 10pm CSI: Miami. A reality 11.20pm Big Brother’s Big 3.50am Treasure Quest
SATELLITE & CABLE

7pm Sky Sports News 7.30pm
Live UEFA Super Cup Football
10pm Take It Like a Fan
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LIVING
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show contestant is killed. 11pm
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7pm Hollyoaks 7.30pm Friends
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with a clingy toddler. 10pm
Wife Swap 11.05pm Rude Tube
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Ultimate Big Brother: Live War 5.30am-6am How Does
That Work?
HISTORY
7pm Mountbatten: Death of a DISCOVERY HOME &
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COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
   

SUDOKU KAKURO
36 14 3 20 9 7
19 6
22 13 11  
45
Place the numbers from 1 to 9 in each empty cell so that each  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 11 24
29 42 17
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above or to the left of it. 12 28
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column, but it must be in a
9
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4 Jetty (4)
6 Putting into
service (9)
2 Promotional statement
(as found on the dust
jackets of books) (5)
Using only the letters in the Wordwheel, you have 3 Very hot and finely
   ten minutes to find as many words as possible,
D O 8 Rowing pole (3)
tapering pepper (6)
10 Insurgents (6)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters D 13 Brass instrument (4) 4 Former Spanish coins (7)
5 Piece of scrap material (3)
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letters can only be used once in every word. There
I E 14 Dry red table wine
from Spain (5) 7 Immense cloud of gas
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
M A 16 Yield (4)
17 Snuggle (6)
and dust in space (6)
9 Arm of the Mediterranean
QUICK CROSSWORD 8 1 2 4 9 5 20 Column of light (3)
between Greece

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11 Christian recluse (7)
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 Punter
28
FOOTBALL TRADER BEN CLEMINSON TAKES A LOOK AT THE CHAMPIONS LEAGUE DRAW AND PICKS OUT THE TEAMS TO WATCH
Wembley braced for
a Spanish invasion
CHAMPIONS
LEAGUE 2010-11
BY BEN CLEMINSON
THE road to Wembley has been mapped
out for England’s representatives in the
Champions League with the biggest obsta-
cles, La Liga giants Barcelona and Real
Madrid who head the betting at 3/1 and
5/1 respectively, kept out of harm’s way for
now.
Fourth favourites Manchester United
will be pleased with their group draw, but
the big doubt about the 8/1 shots is how
they stand up on the biggest stage if
Wayne Rooney is out of form or injured.
Carlo Ancelotti completed his first mis-
sion at Stamford Bridge last term by
dethroning United at the Premier League
summit, and now the Chelsea suits will
have their eyes firmly fixed on Euro glory
– having been a goal-post’s width and a
slip away from lifting the 2008 trophy.
With the final taking place in the capi-
tal and with the Blues among an unprece-
| Football
dented three sides from the city in the
hat, hopes might be high for a first-ever
London European Cup winner.
Of the trio, Chelsea’s 13/2 odds on
Paddy Power suggest they have the best
chance and they might be worth an each-
way poke considering their magnificent
domestic start. They have also reached at
least the semis in three of the past four
campaigns and the Blues should advance
even if they could have done without a
trip to Roman Abramovich’s homeland to
face Spartak Moscow.
Arsenal must also negotiate a tricky trip
east thanks to their pairing with Shakhtar
Donetsk but the 16/1 contenders will be
confident of prolonging their involve-
ment beyond the first phase. There’s no
doubt that if the Gunners could finally
make it their season, it would be all the
sweeter for their fans with the winners’
coronation taking place at a ground they
once called home for Champions League
games.
Tottenham looked like kids given free
reign in the sweetshop after securing
CITYA.M. 27 AUGUST 2010
their place at the European top table, but
Spurs have been thrown in at the deep
end with current holders Inter Milan for
group company along with Werder
Bremen and FC Twente. Don’t take the
40/1 for them to win the tournament, but
a few home wins are within their grasp.
Barcelona should at least reach the
semis and score bundles en route, but at
5/1 on Betdaq, Jose Mourinho’s Real
Madrid look better value than the 2009
winners and are the outright tip.
Elsewhere, there will be plenty of inter-
est in the top scorer markets. Barca’s
David Villa is clear favourite at 6/1 and I
simply can’t oppose that. We saw his
exceptional scoring ability in South Africa
and linking up with Xavi and Andres
Iniesta for his club does his prospects no
harm whatsoever.
POINTERS...
Real Madrid to win the Champions League at 5/1 on Betdaq
Chelsea to win outright at 13/2 each-way with Paddy Power
David Villa to be top goalscorer at 6/1 with William Hill Last year’s winners Inter Milan Picture: ACTION
CITYA.M. 27 AUGUST 2010
FOOTBALL TRADER BEN CLEMINSON HAS TEAMED UP WITH
BETTORLOGIC TO BRING YOU THE CITY AM FOOTBALL TRADER
Hard to separate sides
in key Villa Park clash
ASTON VILLA
EVERTON
SUNDAY – 4.00PM SKY SPORTS 1
ASTON VILLA and Everton were involved in
arguably the most exciting tussle in the
Premier League last year, the race for the
fourth Champions League place. Both ulti-
mately fell short – Everton finishing eighth
behind Villa’s sixth. Two weeks into the
new season then and a challenge for
Europe this year must seem a long way off
for both sides.
The Villans have had to come to terms
with the massive blow of Martin O’Neill’s
walkout just days before the season and,
judging by the 6-0 walloping they were
dealt by a newly promoted Newcastle last
weekend, they are struggling. Everton,
meanwhile, have taken just a single point
from their two opening matches. Even at
this early stage of the campaign, neither
of these closely matched sides will want to
lose ground on the other, so perhaps we
should expect both David Moyes and
Kevin MacDonald to set up to avoid defeat
rather than go all out for victory.
Aston Villa and Everton have tied five of
their last seven meetings and both display
a tendency to draw against similarly
matched teams too. In Villa’s 12 home
matches against top-half, non-Big Four
sides since 2008/09 they have finished
level on eight occasions, while the Toffees
have drawn five of their eight such away
games in the same period. Furthermore,
with eight draws at Villa Park last year and
nine during the 2008/09 campaign, no
group of home fans have watched more
matches finish level in the last two sea-
sons. Back this match to be drawn at 23/10
on Betdaq.
MANCHESTER UNITED
WEST HAM
TOMORROW – 5.30PM ESPN
AVRAM GRANT has made a pretty
appalling start as manager of West Ham.
Comprehensively beaten 3-0 by the other
claret and blues on day one, the Upton
Park faithful subsequently had to witness
a 3-1 defeat to Bolton last weekend. There
was some encouraging play, particularly
in the first half, but the fact that the
Hammers couldn’t convert – and a
Matthew Upson headed own-goal – surely
only added to the feeling that things
BLACKBURN
ARSENAL
TOMORROW – 12.45PM SKY SPORTS 2
OF THE numerous apparent mismatches
in the Premier League this weekend,
Blackburn Rovers arguably stand the best
chance of causing an upset. Big Sam has
made Ewood Park a very tricky place to
visit and a manager as astute as Arsene
Wenger will know that getting a win here
The Punter | Football
Villa drew eight times at
home last season.
Picture: ACTION IMAGES
The analysis regarding the number of
goals is a little less clear-cut. The outcome
of previous meetings would suggest a
high-scoring match as there have been
four or more goals in four of the last five
head-to-heads in the Premier League, and
in five out of six if you include the fifth-
round FA Cup tie at Goodison Park in
2009. However, aside from Villa’s opening
day victory over a poor West Ham and
Everton’s win against League One’s
Huddersfield in the week, neither team
has really impressed in front of goal. The
aren’t going the way of West Ham.
At the Boleyn Ground again in mid-
week, the Hammers looked certain to
have to deal with the embarrassing out-
come of being held to a draw by League
Two’s Oxford until captain Scott Parker
got his side out of jail with a goal in stop-
page time.
After Grant’s own admission that his
charges are a bit down in the dumps, it’s far
from an ideal time – if there ever is one – to
be visiting Old Trafford. Manchester United
are a best-priced 1/6 and it seems the
Londoners will have to wait to pick up their
first points of the season. United have won
all of their last 15 matches at home to bot-
tom-half teams, but there are better bets to
be had than simply backing United to win
at such short odds.
An impressive 13 of the these 15 wins
will not be as easy as the odds of 8/13 sug-
gest.
On their way to a top-half finish last sea-
son, Blackburn were unbeaten at home to
the Big Four, including a 2-1 victory over
Arsenal. Perhaps even more impressively,
Rovers have won seven of their last 10
matches at home. Arsenal looked full of
confidence against Blackpool at the
Emirates last weekend and go into this
match knowing they have won on three of
their last six trips to this particular part of
Lancashire but, of late, the Gunners have
been misfiring outside of North London.
They are winless in five on the road and
have won just half of their 18 trips to mid-
29
...the home of form
hosts will miss the threat of the departed
James Milner, scorer against the Hammers
and Everton clearly lacked a cutting edge
in attack on their trip to Blackburn.
Selling goals at 2.4 with Sporting Index
looks the right option, while a 1-1 result is
good value at 6/1 with Hills.
POINTERS...
Match to be drawn at 23/10 on Betdaq
Sell goals at 2.4 with Sporting Index
Match to finish 1-1 at 6/1 with William Hill
were to nil while the Red Devils, besides
doing the double over West Ham for the
past two seasons, won all four of these
matches without conceding. The 8/11 with
Paddy Power for the hosts to win to nil
therefore looks very appealing.
Like Chelsea against Wigan and Arsenal
against Blackpool last week, if United get
ahead they are liable to twist the knife
and push on to win by four or five. The
Hammers have only managed to score
from the spot in the league so far, so
rather than buy goals, I also suggest buy-
ing United’s supremacy at 2.5 with
Sporting Index.
POINTERS...
Man Utd to win to nil at 8/11 with Paddy Power
Buy Man Utd supremacy at 2.5 with Sporting Index
dle-third sides over the past two seasons.
With this in mind it is difficult to side
with the visitors at the price available and
laying Arsenal at 8/11 on Betdaq has far
more appeal.
Blackburn seem to start well in front of
their own fans and of their seven most
recent home wins, they went in at the
break leading 1-0 on all but one occasion.
Also back Blackburn to lead at half-time at
5/1 with Totesport.
POINTERS...
Lay Arsenal at 8/11 on Betdaq
Blackburn to lead at half-time at 5/1 with Totesport
 Sport
30 CITYA.M. 27 AUGUST 2010

Results
Diop 23
UEFA EUROPA LEAGUE
PLAY-OFF ROUND - SECOND LEG
AEK Athens .................(1) 1 Dundee Utd.......................(0) 1
Daly 78
Strauss falls as England denied by rain
Att: 600
Agg: 2-1.
CRICKET light and showers forced an early end tially to fend off the catch, while a review spared the
▲
Aston Villa....................(1) 2 Rapid Vienna...................(0) 3
Agbonlahor 22 Nuhiu 52 to play, and it might have been threat of Pakistan’s England man on nine when Amir
Heskey 77 Sonnleitner 78 ENGLAND only faced 12.3 overs on a worse for the home side had attack. thought he had him caught behind.
Att: 29,980 Gartler 81 rain-hit first day of the fourth Test, Alastair Cook not been dropped Strauss could do little to Jonathan Trott managed eight
Agg: 3-4.
FC Utrecht....................(2) 4 Celtic.....................................(0) 0 but that was still enough time for on one. combat Asif’s superb in- before the umpires deemed the light
van Wolfswinkel 12 (pen), 20 (pen), 47 Pakistan to dismiss captain Andrew Pakistan captain Salman Butt, swinger, which flew unplayable at around 5:45pm.
Maguire 63 Att: 18,000 Strauss. seeking a victory in this deciding between bat and pad, and Batsman Kevin Pietersen, mean-
Agg: 4-2.
Man City ........................(1) 2 FC Timisoara ...................(0) 0
The skipper (right) has endured a Test to ensure the series ends 2-2, left him cursing another while, has admitted to concerns
Wright-Phillips 43 modest series with the bat and that won the toss and it was no surprise meagre return. about his drop in form during an
Boyata 59 Att: 23,542 lacklustre sequence continued yester- when he put England in to bat. Cook almost went in the injury-hit past 18 months.
Agg: 3-0. day when he was bowled by Seam-friendly conditions kept third over when he edged “I’ve got to look at the positives and
Motherwell.................(0) 0 Odense BK..........................(1) 1
Att: 9,105 Utaka 28 Mohammad Asif for 13 at Lord’s. the home side’s openers on Mohammad Amir only for Umar drag my confidence up, which has
Agg: 1-3. England reached 39-1 before bad their toes and they did well ini- Gul to drop a straightforward been hammered,” said Pietersen.
The New Saints FC..(1) 2 CSKA Sofia........................(1) 2
M Williams 14 Aquaro 11
Evans 62 Tiboni 80

Kuyt rejects
Att: 843
Agg: 2-5.
Trabzonspor................(1) 1 Liverpool............................(0) 2
VILLA MAKE RAPID EXIT
Gutierrez 4 Kacar 84 (og)
Att: 21,065 Kuyt 88
Agg: 1-3.
CARLING CUP SECOND ROUND

Inter talk as
Birmingham.................(1) 3 Rochdale .............................(1) 2
McFadden 28 (pen) Jones 26, 76
Murphy 48
Derbyshire 53 Att: 6,431
CRICKET
FOURTH TEST MATCH
England v Pakistan

Reds qualify
LORD’S: England have scored 39 for one wicket against
Pakistan
ENGLAND: First Inns
A Strauss b Asif ............................................................................................13
A Cook not out ..............................................................................................10
I Trott not out ..................................................................................................8
W5 nb3 ....................................................................................................8
Total (1 wkt., 12.3 overs) ..............................................................39
Fall: 31.
Bowling: Amir 5.3-2-18-0, Asif 6-1-17-1, Riaz 1-0-4-0.
Umpires: B Bowden & A Hill. Liverpool. I’m 30 years old and I want-
LV COUNTY CH’SHIP - Division One: Yorkshire v Hampshire
(Scarborough); Yorkshire 322-9 dec. (A U Rashid 76, A Lyth
TRABZONSPOR
1-3 on aggregate
1 ed to know if any club in the world
showed any interest in me. The club
63, D G Cork 5-64) and 225-4 dec. (J A Rudolph 54, J M spoke to me and explained every-
Bairstow 50no) v Hampshire 498-6 dec. (J H K Adams 196,
J M Vince 180). Yorkshire (7pts) drew with Hampshire
(11pts).
LIVERPOOL 2 thing. They said I was really impor-
tant for Liverpool and that made me a
CLYDESDALE BANK 40 - Group B: Gloucestershire v really proud person. At that point I
focused my thoughts on Liverpool.”
▲

Holland (Rotterdam); Gloucestershire 122-3 v Holland 68-6. FOOTBALL

Gloucestershire (2pts) beat Holland by 54 runs.
BY FRANK DALLERES Reds manager Roy Hodgson added:
GOLF “I have said all along, there has been
JOHNNIE WALKER CH’SHIPS (Gleneagles)— —1st rnd (Gbr & LIVERPOOL forward Dirk Kuyt no offer for Dirk Kuyt, Dirk Kuyt is
Irl unless stated, par 72): 66 Richard Finch. 67 Richard pledged his future to the club after not for sale, so excuse me for not real-
Bland, Gary Boyd, Robert Rock, Stephen Gallacher, David his goal helped them to a comeback ly understanding the speculation or
Lynn. 68 Francesco Molinari (Ita), Nick Dougherty, Julien
Guerrier (Fra), Simon Dyson, Gary Lockerbie, Ricardo win and a place in the Europa League being particularly happy now that
Gonzalez (Arg), Sam Walker, Marc Warren, Mark F Haastrup group stage. he’s said he is staying, because I have
(Den), Gregory Bourdy (Fra), Paul McGinley. The Reds, missing star trio Steven never doubted he was staying.”
Gerrard, Fernando Torres and Javier English teams will discover their
TODAY’S DIARY Mascherano, looked in for a difficult group stage opponents today when
(Football 7.45pm unless stated) night when Teofilo Gutierrez scored the draw is made.
UEFA Super Cup for Trabzonspor and levelled the tie.
Inter Milan v Atletico Madrid................................................................................
But fears eased when Giray Kacar’s
npower League One
own goal put Liverpool back in front
CITY BONUS | BLUES CRUISE
Colchester v Carlisle ..................................................................................................
npower League Two on aggregate and Kuyt made sure of
Bradford v Southend ................................................................................................ the win two minutes from time. ENGLAND winger Shaun Wright-Phillips
GOLF The Holland star has this week scored as Manchester City cruised past
USPGA Tour: The Barclays (Ridgewood Country Club, been linked with a move to Inter Timisoara 2-0 and into the Europa ASTON VILLA crashed out of Europe last night with a 3-2 defeat at home to Rapid
Paramus, New Jersey, United States). Milan, where he would be reunited League group stage. Belgian youngster Vienna. Stephen Ireland (above) set up Gabriel Agbonlahor to put Villa ahead in the
with former Anfield boss Rafael Dedryck Boyata headed his first for the play-off second leg and, following an equaliser and Stiliyan Petrov’s missed penalty,
SPORTS EDITOR JON COUCH Benitez. club as City won 3-0 on aggregate. Emile Heskey restored their lead. But late goals from Mario Sonnleitner and Rene
email sport@cityam.com But Kuyt said: “My future is at Gartler sent Rapid through, while Celtic went out 4-0 at Utrecht. Picture: PA

SPORT | IN BRIEF
Chiefs tighten up
blood injury rules
Molinari books Ryder Cup spot Mayne-Nicholls, who led the Fifa delega-
GOLF: Italy’s Francesco Molinari has tion, said: “Fifa is a family too and we
secured his place in Europe’s Ryder Cup fully understand why he could not be
team after Ross McGowan pulled out of with us. The Prime Minister took the
the Johnnie Walker Championship right decision.”
through injury. England’s bid was warmly received,
McGowan’s pinched nerve means he with Mayne-Nicholls adding that a num- Premier Rugby have
▲

RUGBY UNION
no longer has any chance of overtaking ber of aspects were “perfect”. BY FRANK DALLERES decided to make it
Molinari in the top nine ranking places mandatory.
this weekend at Gleneagles. Schumacher sends ‘sorry’ text TOP-FLIGHT chiefs are convinced “We have put the
England’s Simon Dyson, who needs to FORMULA ONE: Michael Schumacher there will be no a repeat of the right steps in place
win the tournament to gatecrash the has cleared the air with Rubens Bloodgate scandal that shamed the [to ensure it doesn’t
automatic spots, boosted his chances Barrichello ahead of this weekend’s sport after tightening up regulations happen],” said direc-
with a four-under-par round of 68. Belgian Grand Prix with a text message. for the new season. tor of rugby Phil Winstanley. “We shop to fool the officials. The scam
Mercedes driver Schumacher caused a Aviva Premiership rules set to come introduced the blood inspection pro- was later rumbled, with the club
PM praised by Fifa inspectors storm in Hungary earlier this month into effect mean doctors from the tocol. It is a reassurance. There were fined and individuals banned.
FOOTBALL: Fifa inspectors praised Prime when he almost ran Ferrari’s Barrichello opposing team will have the right to no incidences at all of anyone ques- Ex-Quins doctor Wendy Chapman
Minister David Cameron for choosing to into the pit wall. demand a look at any blood injury tioning whether there was a cut.” was yesterday found guilty of deliber-
skip their four-day visit to evaluate “I received a message from him today, they suspect to be fake. Last season Harlequins notoriously brought ately cutting Williams’ lip after the
England’s 2018 World Cup bid. an SMS,” said Barrichello. “He apolo- clubs were encouraged to allow fake blood injuries to prominence match, an act which helped cover up
Cameron’s wife Samantha gave birth gised. I accepted it, wished him a good access to opposing medical staff and last year when winger Tom Williams the plot, but not of deception at a
to a daughter on Wednesday and Harold weekend, life goes on.” the measure was such a success that used a capsule bought from a joke General Medical Council hearing.
CITYA.M. 27 AUGUST 2010
Wembley ‘big
incentive for
London clubs’
CHAMPIONS
LEAGUE 2010-11
BY FRANK DALLERES
ARSENAL chief executive Ivan Gazidis
believes a Wembley final will provide
extra motivation for London clubs to
go all the way in the Champions
League after British sides learned
their fates yesterday.
Newcomers Tottenham got the
plum draw they hoped for with a
group that includes last season’s win-
ners Inter Milan, while Chelsea and
the Gunners were handed more
straightforward opposition.
Manchester United will face
Rangers in two mouth-watering all-
British clashes after they were drawn
together in Group C, while Jose
Mourinho’s Real Madrid join AC
Milan, Ajax and Auxerre in arguably
the pick of the draw.
London has three teams in the
group stage this season for the first
time, and Gazidis identified the
appeal of a potential showdown at the
90,000-capacity national stadium as a
major factor. “There is a real incentive
for all English clubs, especially the
London clubs,” said Gazidis. “It would
be fantastic to play in the final in
London and I know Spurs and Chelsea
will feel the same way. There will
probably be a mini competition with-
in a competition there.”
United manager Sir Alex Ferguson
is relishing facing a club he supported
as a boy and went on to play for, now
managed by his former assistant
Walter Smith. “You can’t complain
about that, it’s a good draw for us,”
said Ferguson. “Walter Smith’s
already been on the phone, talking
about tickets for Old Trafford. I’m real-
ly looking forward to our games
against each other.”
United’s draw raises concerns, how-
ever, about the return to Manchester
of Rangers fans, some of whom rioted
after the 2008 Uefa Cup final defeat to
Zenit St Petersburg. Around 150,000
descended on the city for that match
but Rangers chief executive Martin
Bain said there would be no repeat.
HOW BRITISH SIDES FARED IN THE DRAW
GROUP A
TOTTENHAM
Best: Semi-finals (1962)
Last year: Did not qualify
Fixtures:
14 Sep: Werder Bremen (A)
29 Sep: FC Twente (H)
20 Oct: Inter Milan (A)
2 Nov: Inter Milan (H)
24 Nov: Werder Bremen (H)
7 Dec: FC Twente (A)
Inter Milan
Stadium: Giuseppe Meazza
Capacity: 80,000
Rafael Benitez faces a steep
challenge to replace Jose
Mourinho, but the Spaniard
has retained most of the play-
ers who won this trophy in
May, and loves nothing more
than European competition
Werder Bremen
Stadium: Weserstadion
Capacity: 42,000
World Cup star Mesut Ozil
has flown the nest but the
Germans showed they will be
tough nuts to crack in the
play-off round when they
mounted an unlikely come-
back to beat Sampdoria
FC Twente
Stadium: De Grolsch Veste
Capacity: 24,000
Steve McClaren rebuilt his
reputation by leading them to
the Dutch title last season,
but the Englishman has since
departed. Like Liverpool, they
sing You’ll Never Walk Alone
before kick-off
THE REST OF THE GROUPS
Group B
Lyon Benfica Barcelona
Schalke Hapoel Tel Aviv FC Copenhagen Rubin Kazan FC Basle
GROUP C
MAN UTD
Best: Winners (‘08, ‘99, ‘68)
Last year: Quarter-finals
Fixtures:
14 Sep: Rangers (H)
29 Sep: Valencia (A)
20 Oct: Bursaspor (H)
2 Nov: Bursaspor (A)
24 Nov: Rangers (A)
7 Dec: Valencia (H)
Valencia
Stadium: Estadio Mestalla
Capacity: 55,000
The Spaniards are back in the
Champions League after a
two-year absence, having fin-
ished third last season, but it
remains to be seen how they
will cope without stars David
Villa and David Silva
RANGERS
Stadium: Ibrox
Capacity: 51,000
Their clashes with United
promise to be blockbuster
affairs, and they surely can’t
do worse than last year,
when they only managed two
points and lost 4-1 at home to
Unirea Urziceni. Can they?
Bursaspor
Stadium: Bursa Ataturk
Capacity: 18,000
Won the Turkish Super Lig
for the first time last season
and are making their debut in
Europe’s top competition. Not
great bets to reach last 16,
but are splendidly nicknamed
the Green Crocodiles
Group D
Panathinaikos Bayern Munich
Sport | Football
GROUP F
CHELSEA
Best: Runners-up (2008)
Last year: Last 16
Fixtures:
15 Sep: MSK Zilina (A)
28 Sep: Marseille (H)
19 Oct: Spartak Moscow (A)
3 Nov: Spartak Moscow (H)
23 Nov: MSK Zilina (H)
8 Dec: Marseille (A)
Marseille
Stadium: Stade Velodrome
Capacity: 60,000
Chelsea connections abound
at Didier Drogba’s former club
who, under new boss Didier
Deschamps, won their first
league title for 18 years. Have
started the new season with
consecutive defeats, however
Spartak Moscow
Stadium: Luzhniki Stadium
Capacity: 78,000
Scene of the 2008 final, in
which Chelsea lost to Man
Utd on penalties, it is unlikely
to be the Blues’ favourite
venue, not least because
games at the Luzhniki are
played on an artificial pitch
MSK Zilina
Stadium: Pod Dubnom
Capacity: 11,000
Slovakia’s dominant team of
the last decade, they won
their fifth title in nine years
last season. Were the first
team Chelsea played after
Roman Abramovich bought
the club in 2003
Group E
Roma AC Milan
CFR Cluj Ajax
31
GROUP H
ARSENAL
Best: Runners-up (2006)
Last year: Quarter-finals
Fixtures:
15 Sep: Braga (H)
28 Sep: Partizan (A)
19 Oct: Shakhtar (H)
3 Nov: Shakhtar (A)
23 Nov: Braga (A)
8 Dec: Partizan (H)
Shakhtar Donetsk
Stadium: Donbass Arena
Capacity: 51,000
Ukrainian champions bought
Eduardo from the Gunners in
summer, and the Croatian is
assured a warm reception on
his return to the Emirates.
Not a part of the world
Arsenal relish going to
Braga
Stadium: Estadio AXA
Capacity: 30,000
Finished a best-ever second in
the Portuguese top flight and
then beat Celtic and Sevilla to
reach the group stage for
first time. Fans known as
Arsenalistas, owing to kit’s
resemblance to Gunners strip
Partizan Belgrade
Stadium: Stadion FK Partizan
Capacity: 32,000
Have ruled the Serbian top
flight for the past three years
and are back in the group
stage for the first time since
2003/4, having squeezed
past Anderlecht in the play-
off on penalties
Group G
Real Madrid
Auxerre
 Cell,
cell,
cell.

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