BUSINESS WITH PERSONALITY

THE BATTLE TO STATIC KILL HELPS

RUN LIVERPOOL BP FINALLY PLUG
GATHERS PACE GULF OIL LEAK
REDS TAKEOVER P24 RELIEF FOR OBAMA P3
Issue 1,192 Thursday 5 August 2010 www.cityam.com FREE

DANIELS: FORCING US
TO LEND WON’T WORK
■ Lloyds boss fires warning shot amid ■ David Cameron and Mervyn King ■ Standard Chartered: Shareholders
fears of compulsory lending targets pledge to ensure banks extend credit want us to reconsider British domicile

Lloyds’ Eric Daniels (left) and the Bank’s Mervyn King (centre) may clash over bank lending, while investors are pressuring Standard Charter’s Peter Sands (right) to keep its base in the UK Picture: REUTERS

BANKING Lloyds yesterday, said: “I don’t think good to lend to those who cannot agreements had not been ruled out, the UK.
▲

BY VICTORIA BATES, DAVID CROW
AND STEVE DINNEEN
LLOYDS boss Eric Daniels fired a warn-
ing shot across the government’s bows
yesterday, insisting attempts to force
banks to lend were doomed to failure.
Politicians have stepped up the
rhetoric over bank lending in recent
days, arguing that reports of tight
credit conditions for small businesses
are unacceptable in light of a robust
round of first-half profits.
But Daniels, who unveiled a fore-
cast-beating £1.6bn profit haul for
that [forcing banks to lend] has ever
been a good idea and it has never
worked in the past with other coun-
tries that have tried it. I don’t believe
that will come down the pipe.”
The Lloyds boss, who came under
fire after the disastrous acquisition of
HBOS in 2008 pushed the group to the
brink of bankruptcy, insisted that the
bank is not “being mean and turning
customers away”.
“We will make credit available to
those who are credit worthy – but that
is a big caveat,” he told City A.M.. “It
doesn’t do a bank or its clients any
afford to repay their debts.”
Daniels’ comments came as Prime
Minister David Cameron yesterday
met with Bank of England governor
Mervyn King to discuss ways of mak-
ing banks lend to small businesses.
However, the government is divided
over how to boost lending. Business
secretary Vince Cable has been talking
up the introduction of compulsory
lending targets for banks that fail to
supply credit to small businesses, but
chancellor George Osborne remains
unconvinced of their effectiveness.
An aide to Osborne said lending
but conceded there was a “general per-
ception they don’t work very well”.
Instead, he said the government
would likely try to boost lending by
extending the existing loan guarantee
scheme, which provides banks a guar-
antee for 75 per cent of their exposure
to loans, and by kick-starting competi-
tion in the banking sector.
Policymakers received a further
blow yesterday over their heavy han-
dling of bank regulation, when
Standard Chartered – which con-
tributes over $1bn (£630m) in annual
tax revenues – warned it could quit
Chief executive Peter Sands said
investors were putting pressure on the
bank over its decision to stay domi-
ciled in Britain, adding: “At the
moment we have no plans to move but
we don’t want to be in a situation
where having our headquarters in the
UK gives us a competitive disadvan-
tage. We are in danger of that.”
The imminent introduction of a
levy on bank balance sheets has partic-
ularly annoyed Sands, who has said a
rise in corporation tax would be fairer
and less complicated to implement.
BANK RESULTS: P4, P5, P6

TAXPAYERS TO MAKE £19BN FROM BAILOUT

BANKING diction as the state’s exposure to reports on Friday. will rise with nominal GDP, the gov- healthy profit on the shares after fees
▲

BY OLIVER SHAH
TAXPAYERS stand to make a profit of
£19bn if the government’s stakes in
Lloyds Banking Group and Royal Bank
of Scotland are wound down over the
next five years, according to an inde-
pendent consultancy.
The Centre for Economic and
Business Research (CEBR) made its pre-
Lloyds moved into the black for the
first time in nine months. Lloyds
shares crossed 73.6p – the average pur-
chase price of the government’s 41 per
cent holding – after the bank revealed
bumper first half results.
Shares in RBS, 81 per cent state-
backed, are also trading above the 50p
break-even level at 52.1p. RBS is tipped
to make a slender profit when it
The CEBR said better-than-expected
profits from the clearing banks –
including Northern Rock, in which
the taxpayer has an equity interest of
around £1.4bn – pointed to a hand-
some return for the general public
over the medium term.
Chief executive Douglas
McWilliams said: “Even on the conser-
vative assumption that share prices
ernment is likely to make a profit if it
disposes of the banks in a phased sale
over five years of £19bn.”
McWilliams said then-chancellor
Alistair Darling succeeded in buying
£65.8bn worth of Lloyds and RBS
shares “on the cheap” by refusing to
provide the banks with loans.
“Having ripped off the banks’ share-
holders… the government is now in
are taken into account,” McWilliams
added. He said some of the original
shareholders who were displaced by
the Treasury at the bottom of the mar-
ket “may yet take this issue to court”.
Although the nationalised banks
are returning to health, City minister
Mark Hoban has said a sale is unlikely
to begin before the end of 2011.
ALLISTER HEATH: P2

FTSE 100 ▼ 5,386.16 -10.32 DOW ▲ 10,680.43 +44.05 NASDAQ ▲ 2,303.57 +20.05 £/$ 1.59 unc £/¤ 1.21 unc ¤/$ 1.32 unc Certified Distribution
31/05/10 till 04/07/10 is 103,725
 2 News
China’s power is truly extraordinary
EDITOR’S LETTER
ALLISTER HEATH
REMEMBER the days when manufac-
turing was concentrated in the G7,
while emerging economies supplied
raw materials and components to feed
rich nations’ demand? If you do, you
are clearly showing your age. Even in
2008, as Stephen Lewis from
Monument Securities points out,
China produced more steel than the
USA, the EU and Japan put together.
Perhaps that is not surprising any
more. But what will still shock many
is that China is now also by far the
world’s leading car producer, turning
out 13.8m units in 2009, twice as
7th Floor, Centurion House,
24 Monument Street,
London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
WHAT THE OTHER PAPERS SAY THIS MORNING
DIPLOMATS TO BECOME SALESMEN
The job description for Britain’s
ambassadors is to be rewritten to
include tough targets for trade pro-
motion and a requirement for the
country’s top diplomats to tour the
UK’s regions to showcase commercial
opportunities abroad. As well as glid-
ing through the corridors of foreign
ministries and cultivating contacts
with potential investors and sover-
eign wealth funds, ambassadors will
now be expected to lead “road shows”
in Britain, meeting entrepreneurs
first hand to help them export.
REGULATOR BANS BT BROADBAND
ADVERTS
The advertisements that launched
BT’s new super-fast broadband serv-
ice, Infinity, have been banned after
the regulator ruled their claims of
“instant internet” were misleading.
Consumers lodged four complaints.
many as second-placed Japan’s 7.0m
units. The fifth and sixth positions
were held by South Korea and Brazil
respectively. China’s share of world car
production rose from 3.6 per cent in
2000 to 8.6 per cent in 2005 and 22.6
per cent in 2009. Output in the West
may recover slightly this year but that
won’t make any real difference; the
strength and intensity of the Chinese
tidal wave makes it wholly unstop-
pable, while Western markets remain
ludicrously over-supplied with low-
productivity plants that are not oper-
ating at full capacity but that cannot
be shut down for political reasons.
It is not only China that is taking
over the global car market. From 2000
to 2009, India’s production of motor
vehicles rose more than threefold
while Brazil’s doubled. Meanwhile,
car output in all the “advanced”
economies, including even Germany,
declined, the Monument Securities
figures reveal. Given that hardly any
cars sold in the UK at present come
from China, India or Brazil, the scale
Goldman eyes
key unit rejig
BANKING
▲
BY OLIVER SHAH
GOLDMAN SACHS could hive off its
proprietary trading activities within
months to prevent talented traders
defecting to hedge funds, as US finan-
cial reform legislation takes effect.
Under the so-called “Volcker rule”
banks have four years to cut their pro-
prietary trading exposure to three
per cent of tier one capital. But
Goldman, which at 27 per cent has
Wall Street’s highest exposure, wants
to make a decision “the sooner the
better” to reassure staff, a source said.
One option would be to move its 50
or so traders to an independent
hedge fund. Another would be to roll
them into its standalone investment
division, Goldman Sachs Asset
Management.
Under chief executive Lloyd
BUSINESS EXPERTS TO JUDGE RED
TAPE PROPOSALS
Ministers will have to answer to a
panel of business experts before pro-
posing new red tape measures, under
plans to be announced by Vince Cable
today. The business secretary has
decided to give the regulatory policy
committee more power, allowing it to
challenge rules before they are put in
place. The independent quango is
headed by Michael Gibbons, the for-
mer Powergen executive, who advised
the previous government.
SUCCESSOR SOUGHT FOR RATAN TATA
Tata Group, the Indian industrial con-
glomerate, has called time on the
career of its veteran chairman Ratan
Tata by setting up a panel to find his
successor. In a statement yesterday
evening, Tata Sons, the group’s hold-
ing company, said it had begun a
global search for a successor, consid-
ering external as well as internal can-
didates, to replace Mr Tata when he
retires in December 2012.
of the challenge facing Western man-
ufacturers is clearly even more monu-
mental than previously realised. The
truth is that there is very little hope,
apart from in a few niche areas or
when items need to be produced very
close to their markets for ease of sup-
ply. David Cameron’s strange claim –
last week, during one of his trips
abroad – that “we are actually starting
to reindustrialise some parts of
Britain” was bizarre. Of course, manu-
facturing output is growing again for
cyclical reasons, which is good news.
But that has nothing to do with the
coalition government’s policies (in
fact, their sound budgetary measures,
by pushing up sterling, will inadver-
tently hit exports) and no renaissance
in manufacturing lies on the horizon.
Industries in which we could still be
competitive include finance, business
services, research and development,
high tech manufacturing, design, arts
and entertainment and education. So
it is bizarre that the coalition seems to
be spending so much time bashing
Blankfein, Goldman has increased its
reliance on proprietary trading, with
10 per cent of its revenues coming
from the area last year.
But Rochdale Securities analyst
Dick Bove told City A.M. the Volcker
rule would not necessarily reduce the
flow of cash to Goldman’s coffers.
A carefully arranged third party
contract would ensure the same level
of cost-adjusted prop revenues, Bove
said, while boosting Goldman’s capi-
tal. “If you put a bunch of politicians
up against Goldman, there’s no way
the politcians will win,” he added.
Goldman Sachs chief
executive Lloyd
Blankfein has pushed
the bank toward pro-
prietary trading
GSK TAKES ON THE BACTERIA THEY
CAN’T KILL
A breakthrough at GlaxoSmithKline
could help to revolutionise the mar-
ket for antibiotics, which has come
under pressure as more bacteria
become resistant to existing treat-
ments after decades of over-prescrip-
tion for minor ailments in the West.
Yesterday it emerged that scientists at
GSK, backed by a £4 million research
grant from the Wellcome Trust, have
discovered a compound that could
lead to a new class of antibiotics.
NEW DEFAULT PENSIONS RIGHT UP
OUR STREET, SAYS L&G
Legal & General intends to pitch to
manage money for the Government’s
new flagship pension fund. Speaking
as the insurer raised profits, Tim
Breedon, its chief executive, said: “I’d
be very interested in running money
for Nest — it’s right up our street.”
the banks: if we are to earn a living as
a nation over the next few decades, it
won’t be by making cars.
BAILOUT MAKES A PROFIT
My story of the day: The forecast from
the Centre for Economics and
Business Research that the banking
bailout will yield a profit of £19bn for
the UK taxpayer. This newspaper has
been predicting this for ages – yet
hardly anybody is aware of the facts.
This is not to claim that bailing out
banks was a good thing – in fact, it
was an economic outrage caused by a
defective macroeconomic policy and
regulatory system – merely that tax-
payers’ weren’t ripped off (they actual-
ly ended up exploiting those banks’
original shareholders).
If the bailout cost nothing and even
made a profit, why is the deficit so
high? The answer is general govern-
ment overspending, not handouts to
the City. The sooner people under-
stand this, the better for everybody.
allister.heath@cityam.com
The SEC has reached as settlement regarding the late Hazem Al-Braikan Picture: REUTERS
SEC settles Kuwaiti case
REGULATION
▲
BY HARRY BANKS
A US regulator has reached a $6.5m
(£4.1m) settlement of civil insider
trading charges relating to hoax
takeover news allegedly issued last
year by a Kuwaiti financier who later
committed suicide.
The US Securities and Exchange
Commission alleged that Hazem Al-
Braikan, who was chief executive of a
company in which Citigroup held a
10 per cent stake, reaped illegal prof-
SHUTL TO POWER 90-MINUTE
DELIVERY SERVICE FOR ARGOS
A web start-up that’s less than a year
old has secured a potentially lucrative
trial with Argos that will allow the
retail giant’s customers to have prod-
ucts delivered in as little as 90 min-
utes. Shutl’s technology, which
connects retailers with local same-day
couriers, will power a six-month,
London-based trial which will be avail-
able for Argos customers using its
‘Check & Reserve’ online service.
ECUADOR’S “AMAZON BONDS”
Ecuador is seeking $3.6bn (£2.2bn)
from rich countries -- in return for
doing nothing for a decade. The
unusual deal is part of a new United
Nations initiative to persuade energy-
rich countries not to drill for oil and
gas in environmentally sensitive
areas. Ecuador has agreed not to
touch three Amazon oilfields.
CITYA.M. 5 AUGUST 2010
NEWS | IN BRIEF
UBS told to pay $81m damages
UBS Financial Services has been ordered
to pay $81m (£50.1m) damages to an
investor, Kajeet, for losses related to
auction rate securities. The Financial
Industry Regulatory Authority said UBS
was responsible for damages incurred
by Kajeet, a children’s mobile phone
maker, which was unable to access
funds frozen in the auction rate securi-
ties market in February 2008. UBS
strongly denies culpability.
Infineon loses finance director
German semiconductor manufacturer
Infineon Technologies has lost its chief
financial officer. Marco Schröter has left
with immediate effect, although the
company said plans to sell its wireless
unit would be unaffected.
Barclays to defend big banking
Barclays chief executive John Varley is
expected to use today’s first-half results
to reiterate his defence of large, univer-
sal banks in the face of political pressure
to split investment banks from deposit-
holders. In February, Varley told a meet-
ing of MPs that separating banks “will
not lead to a safer system”.
its after misleading the public and
media about possible takeover bids
for stereo maker Harman
International Industries and corpo-
rate jet builder Textron.
The commission said Al-Braikan
traded in accounts held in his own
name, in his company Al Raya
Investment, and for himself and oth-
ers at the Kuwaiti brokerage Kipco
Asset Management. Citigroup held a
10 per cent stake in Al-Raya.
Al-Braikan was found dead of a
gunshot wound to the head in July.
YAHOO EXECUTIVE SRINIVASAN TO
LEAVE
Srinija Srinivasan, an original
employee who helped launch Yahoo
more than 15 years ago and develop
its early internet search capabilities,
announced yesterday that she is leav-
ing the company. Vice President and
editor-in-chief Ms Srinivasan’s depar-
ture comes as chief executive Carol
Bartz oversees an ongoing turn-
around effort at Yahoo.
MORGAN CLOSE TO HEDGE DEAL
Morgan Stanley is nearing a deal to
relinquish control of in-house hedge-
fund firm FrontPoint Partners,
according to people familiar with the
situation, in what would be one of its
first high-profile overhauls amid new
management and financial regula-
tion. Morgan Stanley’s full ownership
of FrontPoint could go down to
between 20 and 25 per cent.
CITYA.M. 5 AUGUST 2010 News 3

Private sector
Battle to halt payrolls better
BP oil spill has than expected

almost ended
US ECONOMY

rig, was worse than expected after
BP IN CRISIS they estimated that only one-quarter
BY EMMA SADOWSKI of the crude remained in the water.
A report issued by the scientists
US President Barack Obama said yes- said that out of the 4.9m barrels of
▲
PRIVATE sector firms in the United
States upped their staff counts last
month and added 42,000 jobs in the
July, according to a survey from pay-
rolls processor ADP Employer
Services.
This was slightly more than econo-
mists had forecast and was encourag-
ing news only two days ahead of US
News Corp’s Rupert Murdoch (l) and Time Warner’s Jeffrey Bewkes Pictures: REUTERS non-farm payrolls. The better-than-
expected jobs data buoyed global

Advertising rebound helps

terday that BP’s Gulf of Mexico spill is oil that have spewed into the Gulf, stock markets as economists
“close to coming to an end” after sci- one-quarter has been burnt, expressed relief that the figure wasn’t
entists agreed that three-quarters of skimmed and recovered, while a fur- any worse.
the oil is gone and engineers success- ther 25 per cent has either dissolved Paul Ashworth, senior US econo-

News Corp and T Warner

fully killed the leaking well.
“The long battle to stop the leak
and contain the oil is finally close to
coming to an end,” said Obama,
whose ratings in the US have been
hurt by the government’s response to
the Gulf disaster.
or evaporated. The remaining 24 per
cent, said the report, had been dis-
persed either naturally or chemically.
Meanwhile, BP’s new chief execu-
tive Bob Dudley met with Russia’s
deputy prime minister Igor Sechin to
discuss possible asset sales and
▲
mist at Capital Economics, said: “The
ADP survey suggests that labour mar-
ket conditions remain weak but,
again, at least they aren’t getting any
worse.”
Ashworth added that the official
MEDIA year due to an impairment charge. figures are likely to show that private

BP said it had reached a “mile-
stone” in handling the incident, after
mud pumped through the top of the
well appeared to hold down pressure.
BP hopes that the next phase of the
static kill procedure, which will see
cement pumped into the well, could
seal the leak permanently.
A team of US scientists yesterday
dampened fears that the spill, which
was caused by the lethal 20 April
explosion of the Deepwater Horizon
future projects in the region.
BP’s shares rose 1.5 per cent to
421.65p yesterday.
FAST FACTS | WHERE IS THE OIL?
● 25 per cent of the crude remains in the Gulf.
● 25 per cent has been burnt or skimmed.
● 25 per cent has dissolved or evaporated.
● 25 per cent has dispersed naturally or chemi-
cally.
BY OLIVER SHAH
TWO of the world’s largest media
companies reported buoyant quarter-
ly earnings yesterday amid signs of
resurgent income from advertising.
News Corporation, whose portfolio
includes satellite broadcaster BSkyB
and The Times newspaper, swung to a
profit of $875m (£550.7m) or 33 cents
per share in the fiscal fourth quarter.
It lost $203m at the same point last
News Corp, run by Australian
tycoon Rupert Murdoch, said an
advertising rebound and cost cuts
boosted operating income at its news-
papers by 20 per cent.
Time Warner, the owner of US
news channel CNN and the Warner
Brothers film studio, said its second
quarter net income was up seven per
cent to $562m or 49 cents per share.
Revenue climbed eight per cent to
$6.4bn, the highest level in two years.
payrolls increased by 75,000 in July.
However, another 150,000 census-
related lay-offs last month mean that
non-farm payrolls probably fell by
75,000 in total, he added.
Ian Shepherdson at HFE Economics
said: “A gain is better than nothing
but it is not enough to generate a sus-
tained decline in the unemployment
rate, and we don’t see this picture
changing much until next year.”
P12: ECONOMICS

 : + 2 ' 6 
(
6( 266
7+(% PLQ Q  W K H  *DU
7DNHR OXQFKWLPH

PLOH QJH!
H
FKDOO

+(6
 1 1 ( 5  
57  :$7
632 0$66,9(
$
&

25(58 (6$1'*(7


 )
 , 1
6LJQXSQRZIRUIUHH
)
5 0 *8
;*$ 285&2//($
$ 6 (

2 )
%
385& + <
2 5  < 2 8$1' Don’t waste your lunch hour cooking up excuses, forget the coffee run and sign up for the
) any Garmin #4MILER. This four-mile fitness challenge is ideal whatever your motivation –
her to
is vouc
5,&(
o to from shaping up to beating the boss. Just round up your workmates, grab your Garmin
Take th o r g
s h o p store k and
7$/3 sportswatch and chase your goal at your own pace.
7+(72
Swe a t .u
hop.co ER to
weats
www.s e code #4MIL nt! 7+(/
($'(5

enter t
h iscou )2//2:
your d 18.
receive
:::*$50,10,/(&+$//(1*(&28. *$50,
5
#0,/(
 4 News
Lloyds outshines forecasts
as it powers back to profit
BANKING
▲
BY VICTORIA BATES
LLOYDS Banking Group said yester-
day it had powered back to profit over
the first half of the year, in what ana-
lysts dubbed “the most attractive
turnaround story in the European
banking sector”.
Lloyds raked in a pre-tax profit of
£1.6bn over the six months to June,
turning around a £3.96bn loss in the
same period last year and far outstrip-
ping City expectations.
Key to the bank’s runaway success
was a sharp fall in the amount it put
aside to cover toxic loans. Impairment
charges have fallen 38 per cent to
£6.55bn since the end of 2009, and
have more than halved since the first
half last year, when they stood at a
mammoth £13.4bn.
Lloyds, which previously said bad
loan provisions would tumble just 21
per cent in the first half of this year,
said it expected a “moderate” easing
in impairments over the rest of 2010.
Chief executive Eric Daniels
emphasised that the bank, which is
41 per cent owned by the taxpayer
after it was bailed out at the apex of
the crisis, is “playing its part” in sup-
porting its customers and the UK
economy by freeing up capital for
lending. Lloyds said it had extended
almost £15bn of gross new mortgage
lending and £23.7bn of gross lending
to businesses over the period, though
net lending remained broadly flat – a
result it pointed out was due to flag-
ging demand from customers keen to
reduce their indebtedness amid con-
tinuing economic uncertainty.
Daniels added that Lloyds’ EU-
ordered divestment of 600 branches
had been put on hold until the inte-
gration of HBOS is completed at the
end of 2011.
Lloyds chief executive
Eric Daniels has
silenced doubters by
turning around the
bank’s fortunes
Improved margins push
bank back into the black
S
AME script, different cast. Eric
Daniels is still in the role of
greedy banker, but the moral-
ly outraged chorus is now
played by Messrs Cameron, Osborne
and Cable. “Lend to every two-bit
small business that asks for cash,”
they chant, with just as much zeal
as their predecessors, Brown,
Darling and Mandelson. Of course,
they want Lloyds – and every other
bank – to lend injudiciously while
also boosting capital ratios and prof-
its, allowing the government to sell
its stake at an impressive profit. The
coalition obviously thinks it is star-
ring in an impossible fantasy.
Look behind the bank-bashing
bravado, and you can see that
Lloyds has turned the corner. A
much-improved net interest margin
was the biggest surprise; more
aggressive pricing has helped the
bank push it up by over 30 basis
points, from 1.72 per cent a year ago
HSBC USA under investigation
for its money laundering policies
▲
REGULATION
AMERICAN authorities are investigat-
ing the US division of banking group
HSBC over its compliance with anti-
money laundering procedures,
according to regulatory papers.
HSBC USA stated it has received
subpoenas and other requests for
information as part of the probe in a
filing to the US Securities & Exchange
Commission (SEC).
The bank is the subject of ongoing
examinations by various authorities
including the US Attorney’s Office
and the Department of Justice.
“These examinations and inquiries
pertain to, among other matters, our
CITYA.M. 5 AUGUST 2010
Banks in the City
are beginning to
find their feet
again
Picture: Micha
Theiner/
CITY A.M
to 2.08 per cent. As expected, loan
impairments are also falling, from
£13.5bn a year ago to £6.5bn, and
will continue to tumble as the
recovery gathers pace. Although it
will still go down as one of the
worst decisions in British corporate
history, the integration of HBOS is
well under way: the bank is on track
to make £1.3bn of annualised cost
savings, putting the £2bn target
within reach.
Lloyds’ stock is trading broadly in
line with its tangible net worth, but
it’s likely worth more. Regulatory
and economic uncertainty will
understandably weigh on the
shares, but this is a turnaround
story in full swing. The naysayers
said the day would never come, but
it’s time to buy Lloyds.
BOTTOMLINE
Analysis by David Crow
global banknotes business and our
foreign correspondent banking busi-
ness, and our compliance with the
Bank Secrecy Act, Anti-Money
Laundering and Office of Foreign
Assets Control requirements,” the fil-
ing said.
A HSBC spokesman said the bank
was fully co-operating with the US
authorities on the matter.
Governments around the world
have put banks under intense scruti-
ny in the wake of the credit crisis,
with UBS targeted in a US tax evasion
probe last year, while Royal Bank of
Scotland was fined £5.6m by the
Financial Services Authority this
week for lax controls.
CITYA.M. 5 AUGUST 2010
StanChart slumps
despite record half
BANKING
▲
BY STEVE DINNEEN
STANDARD Chartered saw its share
price tumble yesterday despite
posting its tenth successive half of
record profits.
The hike in income failed to
match some analyst forecasts and
sent the shares down closing 3.1
per cent lower at 1,804p, with ana-
lysts pointing to hedge funds shift-
ing to other banks.
Standard Chartered reported
first half profit of $3.12bn
(£1.96bn), 10 per cent up year on
year and 35 per cent up on the sec-
ond half of 2009. The bank, which
is based in London but makes
about four-fifths of its profit in
Santander scoops 318 RBS
branches after £4.5bn boost
BANKING
▲
BY OLIVER SHAH
SPANISH giant Santander fired a
warning shot across the bows of UK
lenders yesterday, agreeing to buy
318 branches from Royal Bank of
Scotland and preparing to reshuf-
fle its global operations.
Santander will become the
fourth-largest bank on the high
street after it takes over the outlets
from RBS for £1.7bn. The deal, due
to complete by the end of next year,
will give Santander 1,643 UK
branches – more than HSBC but
Asia, said impairment losses on
loans dropped to $437m from
$1.09bn a year earlier.
However, the bank’s $7.9bn rev-
enue was a shade below the fore-
casts of analysts including
Nomura’s Raul Sinha, who was
expecting $8bn. This has led
investors to question the forward
momentum of the bank.
Matrix Corporate Capital analyst
Andrew Lim said: “The growth tra-
jectory is now being called into
question. Growth in operating
income has slowed, and growth in
costs increased. A near-term
advance in the share price will be
difficult from here.”
Standard Chartered chief execu-
tive said the rising costs are the
fewer than Lloyds Banking Group,
RBS and Barclays. Its retail market
share will grow to 12 per cent.
The news came as Santander’s
European parent pumped £4.5bn
capital into its UK subsidiary in the
form of a loan. Part of the cash will
be used to pay for the RBS assets,
while the rest will be used to trans-
fer the bank’s global insurance,
credit card and asset management
businesses to its UK balance sheet.
The funds are likely to be repaid
to Santander’s parent with capital
raised through a partial flotation
of its UK arm, a source said. The
News 5
HSBC PRESENTS
Half-year profit: £7bn
2009 first-half profit: £3.5bn
Lloyds Banking Group
Half-year profit: £1.6bn
2009 first-half loss: £3.96bn
Barclays (today)
Expected half-year profit: £3.5bn
2009 first-half profit: £2.7bn
Standard Chartered
Half-year profit: £1.96bn
2009 first-half profit: £1.9bn
Every Friday Night
Royal Bank of Scotland (tomorrow)
in August
Expected half-year profit: £120m
2009 first-half loss: £1bn
6th, 13th,
20th and 27th
OPEN TILL 10 PM
PIMMS • MOJITOS
BEER & CIDER BAR
CHAMPAGNE AND SEAFOOD BAR
result of the bank taking advan- BBQ • PRE-ORDERED PICNICS
tage of investment opportunities
in the wake of the financial col- SILENT DISCO
lapse. He also said operating
income was affected by restructur-
ing costs associated with a US
ANIMAL DEMONSTRATIONS
acquisition.
ANALYSIS l Standard Chartered
p
1,804.00
1,900 4 Aug
1,800
1,700
1,600
10 May 28 May 18 Jun 8 Jul 28 Jul
BOOK ONLINE AT
ZSL.ORG/ZOOLATES
division includes the former Abbey
AND SAVE 20%
National and Alliance & Leicester
OR A HUGE 40%
building societies, as well as parts
of Bradford & Bingley.
RBS, which was forced to dispose
of the branches under European
Union rules on state aid, booked a
IF YOU’RE A GROUP
£350m profit on their net asset
value at the end of 2009. The 83 per
OF 10 OR MORE
cent taxpayer-owned institution
will also this week announce the
sale of its payment processing busi-
The Zoological Society of London (ZSL) is a charity devoted
ness to private equity firms Advent to the worldwide conservation of animals and their habitats.
International and Bain Capital for Registered Charity in England & Wales: no 208728
up to £2.5bn. RBS is expected to
keep a 20 per cent stake.
 6 News
SocGen beats
forecasts as
profits treble
▲
BANKING
BY HARRY BANKS
FRENCH bank Societe Generale yester-
day warned the economic recovery
was still fragile, with moderate growth
prospects in Europe, after it beat fore-
casts with over a three-fold leap in sec-
ond-quarter net profit.
The bank, which last month easily
passed a Europe-wide stress test with a
Tier 1 capital ratio of 10 per cent, said
it was confident of hitting long-term
targets under its “Ambition 2015”
strategic plan that include a 2012 net
profit of €6bn (£4.97bn).
SocGen is battling to restore
investor confidence after the financial
crisis with a new management team
under chief executive Frederic Oudea.
Its shares have underperformed the
sector this year in part due to invest-
ment banking concerns, worries over
wholesale funding and its exposure to
toxic assets.
“(The outlook) is SocGen saying
‘don’t get your expectations up’... Last
year they didn’t highlight issues prop-
erly, now what they’ve shown in this
quarter is that they’ve learned from
that and are under-promising to over-
deliver,” a London-based analyst said.
Analysts said SocGen showed more
positive signs than BNP Paribas, with
retail banking revenue up more than
forecast in France and abroad and a
smaller-than-expected hit from
volatile markets on investment bank-
ing. Its second-quarter net profit was
€1.08bn, up from €309m a year ago
when heavier provisions and asset
writedowns weighed. This beat the
average forecast of €732m.
ANALYSIS l Societe Generale
50 €
45.71
4 Aug
45
40
35
30
10 May 28 May 17 Jun 7 Jul
Stefan Jütte, chief executive of PostBank, said earnings would be positive for all 2010
Deutsche Post uncertain
as ups bad debt provision
BANKING
▲
BY HARRY BANKS
DEUTSCHE Postbank revealed a
return to profit in the second quarter
yesterday but warned business may be
more subdued for the rest of the year.
Germany’s largest retail bank by
clients increased its loan loss provi-
sions to €175m (£144.9m) in the sec-
ond quarter, citing adjustments
made to its exposure to commercial
27 Jul real estate.
Deutsche Postbank made €94m
pre-tax profit in the second quarter
compared with a €29m loss in the
year-earlier period, helped by higher
interest income and a smaller hit on
subprime-related assets. That com-
pared with analysts’ average forecast
of €78m.
Chief executive Stefan Juette said
in a statement he expects earnings in
the second half of the year to fall
short of the first, although they will
be positive for the whole of 2010.
CITYA.M. 5 AUGUST 2010
Allied Irish eyes
fourth quarter
cash call on loss
BANKING
▲
MINORITY state-owned Allied Irish
Banks aims to sell its overseas assets by
September and raise more capital in
the fourth quarter, it said yesterday
after reporting a more than doubling
of first-half losses.
Allied Irish last month scraped
through European stress tests with a
Tier 1 ratio of 6.5 per cent, after includ-
ing the €7.4bn of capital it is yet to raise
to plug the hole left by transfers of
property loans to the National Asset
Management Agency (NAMA),
Ireland’s “bad bank”.
Its loss in the first half of 2010
widened to €1.73bn from a loss of
€786m a year ago, after losing €963m
on the first tranche of NAMA transfers,
it said in a statement. It said it
remained on track to carry out “a plac-
ing and/or a rights issue” in the fourth
quarter to raise the rest of the €7.4bn
required after the asset sales.
“We have to sell the assets against a
countdown clock,” group managing
director Colm Doherty told analysts,
referring to the Irish financial regula-
tor’s end of year deadline to raise the
new capital. “We are having to do so in
immensely volatile markets,” he said.
Allied Irish warned it would need
more government support, in part
through a state guarantee scheme for
its liabilities due to end in December.
CITYA.M. 5 AUGUST 2010
AXA UK boss Nicolas Moreau (l)
will be replaced by Paul Evans (r)
in October.
L&G shares
drop despite
dividend hike
▲
INSURANCE
BY OLIVER SHAH
LEGAL & GENERAL shares fell yester-
day even though the life insurer
announced a 20 per cent hike to its
dividend on the back of rising annu-
ity returns and strong inflows.
Uninspired by chief executive Tim
Breedon’s “mixed” outlook for the
coming year, investors sold L&G stock.
The firm’s share price fell 1.3 per cent
to 89.65p.
The drop came despite plaudits
from analysts as L&G beat consensus
with a 34 per cent rise in pre-tax oper-
ating profits to £542m on an IFRS
basis. A pre-tax deficit of £143m in the
first half of last year was transformed
into a profit of £537m.
Net cash generation was ahead of
target at £358m, driven by favourable
pricing conditions for annuities and
positive flows of savers’ cash.
Observers said the FTSE 100 group
would easily meet its target of gener-
ating £600m by the end of the year. As
a result, L&G increased the interim
payout to 1.33p per share.
The company has £3.3bn excess
capital above regulatory needs which
could be put to work on further inter-
national expansion. Breedon said:
“We continue to see opportunities to
export our investment management
and bancassurance franchises into
international markets.”
Marcus Barnard, an analyst at Oriel
Securities, said doubts over L&G’s
ability to maintain its rate of cash
flow and sales growth were unfound-
ed. “If there’s an issue about sustain-
ability it’s ten years out rather than
one year out,” he said.
Barrie Cornes at Panmure Gordon
said: “Cash generation was ahead of
our forecast and the capital position
has been transformed over the past
year. The shares have rallied in the
past month but we believe they have
further to run.”
BGC Partners looks to emerging markets Hammerson buys offices
▲
FINANCIAL SERVICES
BY OLIVER SHAH
INTERDEALER broker BGC Partners
plans to expand in China and the
Americas after reporting a 45 per cent
rise in second quarter pre-tax profits.
BGC, which brokers financial
instruments for banks and traders,
said it planned to target emerging
market economies for growth. The
company has established a presence
US Non Farm Payrolls
Tomorrow 1.30pm (London Time)
TRADE Wall St Index
1 Point Spread
cityindex.co.uk
0870 160 1154
1 point spreads available during our market hours only.
Spreads lowered on our rolling and daily future spread bet markets.
Spread betting can result in losses that exceed your initial deposit.
in Sao Paulo, Moscow and Beijing over
the past two years and wants to
deploy more resources in the regions.
US spokesperson Bob Hubbell said:
“Over the long term [China] is going
to be an important emerging market.
In the long run we want to be there as
well as in other markets like Russia
and Brazil. In addition we are really
expanding in the Americas.”
BGC’s stance on China contrasts
with that of British rival Tullett
AXA posts first-half loss
▲
INSURANCE
BY EMMA SADOWSKI
AXA, Europe’s second-biggest insurer
by market value, posted a net income
fall of 29 per cent to €944m (£782m)
yesterday driven by the loss of
€1.48bn from the sale of some UK Life
operations to insurer Resolution.
The French firm also announced a
management reshuffle. It said
Prebon, which this week said the
country was of limited appeal to
interdealer brokers due to its strict
rules on joint ventures.
BGC’s headcount rose 11.5 per cent
to 1,600 brokers compared with the
second quarter of 2009. Hubbell said
the rate of growth would continue.
BGC reported a 44.7 per cent jump in
earnings to $46.5m (£29.3m) or 20 cents
per share yesterday. Net income fell 7.4
per cent to $19.6m or 9 cents per share.
Nicolas Moreau, chief executive of the
UK arm and chairman of Axa
Investment Managers, would return
to France to become chief executive of
the core domestic business, while
François Pierson would give up that
role but retain responsibility for the
global general insurance business.
And Paul Evans, currently deputy
chief executive of Axa in the UK, will
become chief executive of the UK
PROPERTY
REAL estate investor Hammerson has
teamed up with a Canadian pension
investor to buy the long leasehold of
10 Gresham Street for £183m.
The joint venture has bought the
Foster & Partners-designed building
from Union Investment, a German
fund. Union purchased the property
from Standard Life in May last year.
Hammerson has paid £55m for a 30
News 7
business.
The firm said these appointments
would become effective from 1
October.
Axa added that stripping out its
one time sale of some of its Life assets
to Resolution, its first-half underly-
ing profit only declined two per cent
to €2.08bn.
Overall, revenues at the group were
flat at €49.9bn.
Munich Re
results beat
consensus
▲
INSURANCE
BY HARRY BANKS
MUNICH RE reported much stronger-
than-expected earnings in the second
quarter, bolstered by surging invest-
ment income that offset hits from
damage claims such as the sunken
Deepwater Horizon oil rig in the Gulf
of Mexico.
The world’s biggest reinsurer
reported quarterly net profit of
€709m (£588m), which was above the
highest forecast of €570m and well
above the average forecast for net
profit to decline to €481m.
Munich Re said it was sticking to its
full-year goal of achieving net profit
of more than €2bn.
“Following the major losses in the
first half-year, this target remains
ambitious, but given normal loss
experience and continued strong
investment results it is certainly
achievable,” the company said in a
statement yesterday.
Analysts had expected Munich Re
to fall short of its 2010 profit goal,
with a major worry being the out-
come of this year’s hurricane season,
which enters its most active period in
the second half of the year.
Munich Re’s shares, which were
seen as a defensive investment during
the financial crisis, are now flat com-
pared with the start of the year, lag-
ging a three per cent rise in the Stoxx
600 European insurance index.
ANALYSIS l Munich Re
€ 107.15
110 4 Aug
108
106
104
102
100
May 2010 Jun 2010 Jul 2010
per cent interest in the venture, and
will manage the asset on behalf of the
pairing with the Canada Pension Plan
Investment Board. The total price
included £8m in costs.
The eight-floor building is home to
Lloyds TSB bank, law firm Milbank
Tweed Hadley and investment firm JC
Flowers. Passing annual rents total
£10.7m, with an average headline
rent of £44 per square foot and aver-
age lease length of 11 years.
 8 News CITYA.M. 5 AUGUST 2010

Toyota posts £1.4bn profit

as car sales start to recover
when it fell into the red by 77.82bn expectations that it will sell more
▲

AUTOMOTIVE
BY EMMA SADOWSKI
EMBATTLED Japanese carmaker
Toyota celebrated a return to prof-
itability yesterday and lifted its full
year guidance despite facing a crip-
pling recall of its vehicles earlier in
the year.
The Tokyo based manufacturer
posted a first-quarter net profit of
190.47bn yen (£1.38bn) marking a u-
turn from the same period last year
yen. Group revenues increased 27 per
cent on last year to 4,872bn yen.
Despite suffering severe reputa-
tional damage after recalling more
than 10m cars because of safety prob-
lems earlier this year, Toyota raised its
guidance for the year to the end of
March, 2011 and said it expects net
profit to hit 330bn yen.
The revision is now 50bn yen high-
er than the group previously antici-
pated and reflects Toyota’s
vehicles this year.
However, Toyota remains cautious
about the second half of the year,
despite posting profit growth in the
first quarter, with expectations that
costs are likely to rise.
President Akio Toyoda vowed to put
the recall debacle that has monopo-
lised his first year as chief executive
behind him, calling 2010 a fresh
“starting line” for the 73-year-old firm
founded by his grandfather. Toyota boss Akio Toyoda wants to put the recall behind him Picture: REUTERS

British Land
aims for long
term growth
permission is granted, but the rest of
▲

PROPERTY
BY MARION DAKERS
BRITISH Land’s growth stuttered in
the last quarter, dampened by con-
cerns over the UK economy despite
growing demand for office space.
The country’s second-largest prop-
erty firm said yesterday its net asset
value grew by just 2.2 per cent in the
three months to 30 June, compared to
15.1 per cent growth in the previous
quarter. Pre-tax profit for the first-
quarter was £64m, up 3.2 per cent on
last year.
The firm remains optimistic about
its long-term prospects, after renting
nearly a million square feet of office
space in the quarter on an average
lease length of 12.5 years.
The firm’s next results will also
include its recent 700,000 square foot
deal to rehouse the London headquar-
ters of UBS. Chief executive Chris
Grigg said yesterday the firm plans to
demolish 64 Broadgate if planning
the new headquarters will be based in
existing buildings.
Grigg said access to finance
remained tight for most property
companies, amid global spending
constraints, but that a slowdown in
yield growth had been expected.
“If you have modern, high-quality
buildings in the right locations, you
will be the first to benefit from any
increase in demand. This has always
been at the heart of our strategy,” he
told analysts yesterday.
The company saw rental growth of
2.4 per cent in the City, with occupan-
cy up to 97 per cent and average head-
line rents on the rise. Around half a
million square foot of leases are due
for review in the coming year.
Grigg also confirmed yesterday the
firm was in discussions with
Prudential Partners over the
Cheesegrater development on
Leadenhall. The stock closed three per
cent down at 457p .

ANALYST VIEWS: WHAT DO YOU MAKE OF

BRITISH LAND’S RESULTS? Interviews by Marion Dakers

PAUL PULZE | EVO SECURITIES

“ The importance lies in what British Land didn’t say, rather than the
contents of the results. The firm said it’s doing exciting things in the long term, but

”
competitors like Hammerson have got big plans in the works now. It has £300m
of debt facilities and doesn’t need to rely on big deals in the future.

TINA COOK | CHARLES STANLEY

“ The net asset value growth was driven by an increase in property val-
ues, which seems to have disappointed the market. Occupancy remains high and

”
the firm seems focused on development, though opportunities have been scarce.
It continues to progress in what it hopes is a rising office rental market

HARM MEIJER | JP MORGAN

“ I think the results are just fine – from an operational point of view they
were a bit stronger. The disappointment in the market is coming from the fact

”
that British Land is the first company to show that property operations are start-
ing to slow, but it’s more of a sector-wide warning. For us it was expected.
 The Capitalist
ANCIENT INDIAN SEXUAL WISDOM,
PIPED LIKE MUSIC TO YOUR EARS
HURRAH for technology: the days of
keeping up appearances among fel-
low passengers by trawling through
suitably intellectual reading material
on the daily commute are officially
over.
The Kama Sutra, that literary foun-
tain of Indian sexual wisdom, has
been released in audio book format
for the first time in its 1,600 year his-
tory. Publisher Beautiful Books is
preening itself over its new product,
which it describes as a “perfect meet-
ing of ancient history and moderni-
ty”, and suggests using it to “liven up
the commute to work” (ooh-er).
“Some may also consider using the
audio book as a step-by-step manual
for improving bedroom techniques,”
it adds, “without the need to stop and
start with constant reference to a
book…”
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
And who, you may ask, is the lucky
girl whose dulcet tones were selected
to croon about weird and wonderful
positions and amazing feats of sexual
endurance? None other than British
actress Tanya Franks, who the less
high-brow among us might recognise
as Rainie Cross in EastEnders. At least
her dulcet tones have got to be prefer-
able to an ancient CD of Marvin
Gaye’s “Let’s Get It On”.
The Kama Sutra can now be downloaded straight to your iPod
FUTURISTIC CHIC
At last, the answer to a mystery The
Capitalist has been pondering for a
while. In October last year, this col-
umn brought you news of a shake-up
down at the London Stock Exchange,
which had taken the decision to axe
“The Source”, the sculpture of mov-
ing spheres installed in the atrium
when the firm moved to its flagship
Paternoster Square HQ some years
ago.
The eight-storey-high sculpture was
subsequently removed, leaving the
hallway naked in preparation for a
new, interactive “market opening
experience”, the implementation of
The LSE takes inspiration from the movies
which was being overseen by corpo-
rate communications director John
Wallace. Fast forward over nine
months, and nothing has yet materi-
alised – which may well have some-
thing to do with the fact that Wallace
was let go in May amid chief execu-
tive Xavier Rolet’s restructuring drive.
Now, I’m told that oversight of the
project has been passed to technology
whizzkid Antoine Shagoury, who
recently joined the exchange as
chief information officer to over-
see the migration of its IT sys-
tems onto the MillenniumIT
platform. Plans are afoot to
launch the new “experience” by
early next year – while ideas
already mooted include shoot-
ing a current through the
glass panes of the atrium to
make them opaque and
allow images to be projected
onto them. Very Minority
Report.
ALIEN
ENCOUNTER
Oh, goody. The National
Archives, always keen to
stir up a bit of interest in histori-
cal data, is preparing today to
release the latest instalment of
its extensive files on UFO sight-
ings in the United Kingdom.
Close followers of extra-ter-
9
Picture:GETTY
restrial goings-on will remember the
previous instalments, which included
a “Toblerone shaped” UFO spotted by
a West Lothian electrician and a large,
illuminated, flying blue triangle
which deposited a silky substance on
the tree tops of a Birmingham gar-
den. Whatever will they reveal next?
ECONOMICS OF SEX
The name Kristin Davis is probably
familiar to those who followed the
Eliot Spitzer escort girl fiasco with
intrigue a few years ago.
Davis, the “madam” who supplied
Spitzer and other high-profile politi-
cians and businessmen with beauti-
ful girls, is now running for governor
of New York (yes, really) and has just
released her official campaign video.
As you’d expect, it’s full of gaudy
bright colours, exposed cleavage and
bleached blonde hair, and is set to the
tune of “Funk Soul Brother” – and
there are some gems in there about
Davis’ background before she entered
the sex industry.
Apparently, Davis – who is cam-
paigning for the legalisation, taxation
and regulation of prostitution and
marijuana – used to be the vice presi-
dent of a “billion dollar hedge fund”,
before she made the business deci-
sion to found an escort agency.
“The economics of sex sounded
very appealing,” she coos. I’ll bet.
KEEPING COOL
A reader emails with news that “ice
cream Wednesdays” are being phased
in at Royal Bank of Scotland during
the summer, which he suggests is a
small token to thank staff for staying
loyally with the bank despite
lower-than-average bonus pots.
The official line over at the
bank is that the initiative is
on a small scale among vari-
ous teams, rather than a
group-wide ice cream giveaway.
But perhaps those affected
could make the whole affair
into a true gastronomic chal-
lenge by dreaming up bank-
appropriate flavours other
than Raspberry, Banana
and Strawberry?
FINAL CALL
And finally, count this as
the last call for nomina-
tions for The Capitalist’s
upcoming competition to
find the ten hunkiest
gents and loveliest ladies of the
City! Send your nominations to
thecapitalist@cityam.com along
with a photo – the results
will be in very soon…
 10 Consumer News
Next is downbeat about consumer demand
Next to hike prices
as its costs increase
RETAIL
▲
BY JOHN DUNNE
NEXT yesterday reported a slow-
down in consumer spending and
said the rising costs of materials
and VAT would force a hike in the
price of its goods.
The retailer said factors such as
rising cotton prices and the VAT
jump to 20 per cent from January
would mean the customer being
hit in the pocket.
Next said: “We have yet to pur-
chase the majority of our spring-
summer ranges but we estimate
that selling prices may rise
between five per cent and eight per
cent.”
Adidas sees a rebound after World
Cup boosts its first-half sales figures
RETAIL
▲
BY JOHN DUNNE
ADIDAS yesterday raised its profit
forecasts after the World Cup
fuelled a retail sales lift of 20 per
cent in the first half of the year.
The world’s second biggest sport-
ing goods maker after Nike, said it
expects full-year net profit of
€520m (£430m) to €550m.
Adidas supplied the Jabulani
World Cup match balls and teams
including host nation South Africa
and champions Spain, used Adidas
NEWS | IN BRIEF
Campari sees sales grow 16pc
Drinks group Campari saw sales grow
by more than 16 per cent in the first
half of the year. That fuelled a net
profit of €69.3m (£57.4m) – up 15.2
per cent on the previous year. Bob
Kunze-Concewitz, chief executive, said:
"Our performance in the first half of
2010 was very positive with signifi-
cant growth across all key indicators.
Looking forward to the remainder of
the year, we have a balanced view of
Meanwhile the company, which
runs over 500 stores in Britain and
Ireland, said first-half sales at shops
open at least a year fell 1.5 per cent.
However, sales at its Directory
home shopping business climbed
7.8 per cent in a lift for the compa-
ny which was hit in the recession.
Gross profit margins increased
in the first half and full-year profit
will be between six to 11 per cent
higher than the previous year at
£535m to £560m, according to
Next’s forecasts.
But it said there had been a
marked tailing off in consumer
demand. “We believe that con-
sumer spending will be more
restrained in the second half than
gear. The company said the compe-
tition would boost 2010 revenues
from football-related products to at
least €1.5bn.
Chief executive Herbert Hainer
said: “We had an outstanding first
half year driven by the FIFA World
Cup 2010, and the resurgence of
the Reebok brand in North
America.”
The company expects its gross
profit margin for 2010 to be 47.5
per cent, up from 45.4 per cent. It
also said operating margin would
be about 7.5 per cent, compared
risks and opportunities.”
The company, which is based in Milan,
has a portfolio of more than 40
brands, including Wild Turkey. The
products are sold in 190 countries.
MoneySupermarket boost
Price comparison website
Moneysupermarket.com yesterday
said its full-year outlook was in line
with expectations after posting posi-
tive first-half results thanks to its
CITYA.M. 5 AUGUST 2010
First-half sales at shops
open at least a year fell
1.5
per cent.
First-half sales at its Directory
home shopping business climbed
7.8
per cent.
Next runs over
500
stores in Britain and Ireland
£535m to
£560m
full-year profit forecast
Picture: Micha Theiner/City A.M.
in the first, as spending cuts and
tax rises begin to take effect,” it said.
Next is budgeting for like-for-like
retail sales to be between 1.5 per
cent and 4.5 per cent lower in the
second half of the year.
ANALYSIS l Next
2,300
p 2,027.00
4 Aug
2,200
2,100
2,000
10 May 28 May 18 Jun 8 Jul 28 Jul
with 4.9 per cent last year.
It had raised its outlook in May,
saying 2010 profit would rise to
between €430m and €480m after
weak results last year.
It reported on 22 July that sec-
ond-quarter net profit had jumped
fourteen-fold, exceeding analyst
estimates. Puma, which comes in
behind Adidas and Nike, last week
scrapped its full-year pre-tax profit
forecast. Nike, which competes
directly with Adidas in the football
market, is due to report its first-
quarter earnings on 23 September.
money and insurance divisions.
The group said adjusted earnings
before interest, tax, depreciation and
amortisation fell three per cent to
£18.1m, off revenues up four per cent
at £71.6m. The firm, which said in July
that its tough travel markets had off-
set revenue growth in money and
insurance products, said it had also
increased its investment into both
building new products and advertising
the brand on TV.
CITYA.M. 5 AUGUST 2010
Carpetright facing
a tough year ahead
RETAIL
▲
BY JOHN DUNNE
CARPETRIGHT, Britain’s biggest
floor coverings retailer, posted a
drop in first-quarter underlying
sales yesterday and said it was cau-
tious about the outlook for con-
sumer spending for the rest of its
financial year.
The firm, which runs over 700
stores, said sales at British and Irish
stores open at least a year fell 3.4
per cent in the 13 weeks to 31 July,
compared with a 1.5 per cent rise
in the final quarter of its last finan-
cial year.
Chairman and chief executive
Lord Philip Harris said: “We
SWATCH CLOCKS UP RECORD RESULT
SWATCH, the world’s largest watchmaker, yesterday reported a 54 per cent
increase in profits for the first six months of the year. Net profit rose to SwFr465m
(£280m) on record gross sales of SwFr3.03bn. The group, best known for its colour-
ful plastic Swatch watches but also owns higher-end brands such as Breguet,
Blancpain and Omega, expects record profits for the full-year.
Premier Foods sees profit
dip with extra pension cost
CONSUMER
▲
BY HARRY BANKS
BRITAIN’S largest food producer
Premier Foods yesterday posted a
lower profit on additional pension
and restructuring costs, but said it
was on track to generate its target-
ed cash flow for 2010, sending its
shares up nine per cent.
The FTSE-250 group, which had
been laden by heavy debts mostly
due to some of its acquisitions,
reduced its debt pile by £110m to
£1.37bn.
Consumer News
remain cautious about the outlook
for consumer spending for the bal-
ance of the year and as a conse-
quence continue to manage the
business by exerting tight control
over all costs, capital expenditure,
stock and cashflow.”
Carpetright has 536 stores and
52 concessions across the UK and
Ireland. It operates under the
Carpetright, Storeys and Sleepright
Chairman and chief
executive Lord Philip
Harris said tight cost
controls are key in
the tough climate
Picture: REUTERS
But for the six months ended 26
June, the company’s pre-tax profit
fell to £33m from £39m last year.
Revenue fell 5.2 per cent to £1.18bn.
Premier continued to invest in
its brands and added £6m to its
consumer and in-store marketing
spend in the reporting period.
“We had acquired a lot of brands
and they’ve been under-funded. So
we are trying to make up for that
under-funding now as we restore
the brands,” chief executive Robert
Schofield said.
He said he remained “open
11
brands. It also has 116 outlets in the
Netherlands and Belgium.
Arden analyst Nick Bubb said:
“Carpetright always is optimistic.
History should have taught
investors by now that things never
turn out as well as Phil Harris
thinks, but his status as a bell-
wether of the sector (first into reces-
sion, first out etc) is remarkably
undiminished. We had expected
quarter one sales to remain disap-
pointingly sluggish and in fact they
are poor. On that basis the full-year
is unlikely to produce more than a
limited recovery.”
Harris had previously warned
the UK could be heading for a dou-
ble-dip recession.
World cup and
sunshine give
Marston’s a lift
▲
LEISURE
SUNSHINE and the World Cup
weather boosted beer sales for
brewer Marston’s.
The company said yesterday it
remained on track to meet its
expectations for the year.
Sales at its managed pubs open
for more than a year were up 1.7
per cent on the prior year in the 43
weeks to 31 July, including a 2.7 per
cent increase in the 11 weeks to 31
July. Underlying profit at its tenant-
ed pubs fell by four per cent in the
same period.
Tenanted pubs, which are
owned by pub companies but run
by publicans, have fared less well
than managed pubs through the
recession as they have tended to
have less flexibility on pricing and
promotions.
Britain’s pubs have battled with
a torrid trading environment over
the past two years as a combination
of a smoking ban, recession, above-
inflation increases in beer duties
and cheap booze offers in super-
markets have all taken their toll.
minded” about the disposal of
some of the company’s assets, but
he ruled out the possibility of buy-
ing new brands.
“It takes us a few years to get to
our target (of cutting debt) organi-
cally. Therefore we are open mind-
ed about disposals if they
accelerate that journey,” he said
yesterday.
Premier, whose brands include
Hovis bread, Branston pickle and
Bisto gravy, said it was still cautious
about market conditions in the
uncertain consumer climate.
 12 Economic News
US services see
small bounce...
▲
US ECONOMY
A SMALL bounce in the US ISM non-
manufacturing index to 54.3 in July
from 53.8 in June indicated that the
world’s largest economy is not spi-
ralling into the abyss after all.
Encouragingly, the gain was driven by
a rebound in new orders to 56.7 from
54.4. Employment also grew last
month after a slight cut to head-
counts in June.
In the Eurozone, the services PMI rose
to 55.8 in July, up from 55.5 in June.
Shadow MPC
keeps policy
on hold again
UK ECONOMY
▲
BY JESSICA MEAD
MONETARY policy should remain
firmly on hold this month despite
stubbornly-high inflation and strong
second quarter growth to offset the
effects of fiscal tightening and slower
growth in the Eurozone, according to
a majority of City A.M.’s Shadow
Monetary Policy Committee (MPC).
Ahead of the Bank of England’s
decision, scheduled for midday today,
the shadow committee remains divid-
ed, with seven members voting for no
change while two retained their
hawkish stance and called for a tight-
ening in interest rates of 0.25 per
cent. Both Henderson’s Simon Ward
and City A.M.’s Allister Heath continue
to call for rate rises. They point to a
need to normalise monetary policy
now economic growth and high infla-
tion suggest that emergency settings
are no longer warranted.
Of those that voted for no change,
most argued that it was still too early
to start tightening monetary policy
...but UK services growth Halifax reports a rise in
continues to slow down UK house prices in July
▲ WORLD ECONOMY
BY JESSICA MEAD
GROWTH in Britain’s services sector
slowed sharply last month, confirm-
ing analysts’ forecasts that economic
activity will have cooled during the
third quarter of the year.
The leading Markit/CIPS purchas-
ing managers’ index (PMI) fell to 53.1
from 54.4 in June, a slightly greater
drop than economists had expected
given the risks to recovery and also
pointed out that the current stimulus
should be sufficient.
The Bank of England MPC is not
expected to make any changes to
monetary policy this month given
the early stages of the recovery. What
will be more interesting, say econo-
mists, will be the Inflation Report
next week and the minutes of the
August meeting, which will show
whether Andrew Sentance has man-
aged to convince any other members
to raise rates, including newcomer
Martin Weale.
Nick Beecroft, senior FX consultant
at Saxo Bank, said: “It seems clear
that the overwhelming majority of
the committee will not be swayed by
Andrew Sentance’s hawkish argu-
ments and will, like the European
Central Bank, have due regard for the
ferocious fiscal tightening to come
and the potential negative effects of a
US slowdown, which seems to be
becoming reality as lacklustre eco-
nomic releases follow each other, day
by day.”
CITYA.M. 5 AUGUST 2010
and the fourth fall in five months. But analysts warned against being
▲
PROPERTY
The business expectations balance too optimistic too quickly. IHS Global
managed to rise to 64.9 from 64.0, but FEARS of a double-dip in the UK hous- Insight’s Howard Archer said: “House
this only reversed a fraction of June’s ing market dissipated somewhat yes- prices are notoriously volatile on a
drop from 72.1. terday after mortgage lender Halifax month-to-month basis, and can also
Although the UK services PMI reported that house prices rose by 0.6 be from survey to survey. So it is best
caused the composite index of activi- per cent in July. not to attach too much importance to
ty to fall to 54.6, the sharpest drop Last month’s rise entirely offset the one piece of data.” He added that the
since November 2008, this is consis- June drop in prices and the average July survey did not fundamentally
tent with overall quarterly growth of price of a UK house now stands at alter his view that house prices will
0.4 per cent in July, said Barclays £167,425. This is slightly below where ease back towards the end of 2010 and
Capital’s Varun Bhabha. they were at the end of 2009. are likely to soften slightly in 2011.
CITY A.M. | SHADOW MPC
ALLISTER HEATH | CITY A.M.
Raise rates by 25 basis points. Growth will ease from the second-quarter high but there will not be a dou-
ble-dip. Inflation is still too high and the money supply is continuing to grow strongly.
SIMON WARD | HENDERSON
Raise 25 basis points. Emergency policy settings are no longer needed against a backdrop of above-trend GDP
growth, resilient core inflation, stronger money supply expansion and firming household inflation expectations.
GEORGE BUCKLEY | DEUTSCHE BANK
No change in rates or QE. While growth has returned, the UK is operating at low levels of output which
should prevent early rate rises. When rates are eventually raised, the tightening may prove very gradual.
MELISSA KIDD | LOMBARD STREET RESEARCH
No change. The existing monetary stimulus is enough to support the recovery, despite fiscal tightening in the UK
and Europe. Rising inflation expectations and above-target inflation hint at a 0.25 per cent hike later this year.
GRAEME LEACH | IOD
Hold both rates and QE. Second quarter growth will be as good as it gets and broad money supply certainly
isn’t signalling a sharp recovery. It is far too early to call for a change in the rate cycle or reversal in QE.
HOWARD ARCHER | IHS GLOBAL INSIGHT
No change. With threats to recovery coming from tighter fiscal policy and slowing global growth, we favour sit-
ting tight to see how growth holds up after the second-quarter spike. The July PMIs are a cause for concern.
TREVOR WILLIAMS | LLOYDS TSB
I remain concerned at the slowing rate of bank lending and money supply growth and am not worried by
the inflationary threat in the near term. My vote is to hold rates and to be ready to extend QE as required.
VICKY REDWOOD | CAPITAL ECONOMICS
With spare capacity set to bring inflation down, there’s no need to raise rates. In fact, policy might yet need to
be loosened further to offset the fiscal squeeze. But for now, pausing again seems the right thing to do.
PETER DIXON | COMMERZBANK
No need for change right now. Strong second quarter growth was an outlier and a slowdown is likely. Inflation
is above target – and likely to remain so until end-2011 – but it is not sufficient a threat to justify a rate hike.
CITYA.M. 5 AUGUST 2010
Shire boosts
outlook after
revenue soars
▲
PHARMACEUTICAL
BY EMMA SADOWSKI
SHIRE, the acquisitive drugmaker
buying Belgium’s Movetis, beat sec-
ond-quarter expectations as its rare
disease franchise capitalised on pro-
duction woes at US rival Genzyme.
The strong performance prompted
the UK company to increase its full-
year forecast and chief executive
Angus Russell said he now expected
underlying 2010 earnings to grow 15
percent from 2009.
Shire’s drugs for hyperactivity also
performed better than expected, as
sales of Vyvanse gathered pace, offset-
ting pressure on former blockbuster
Adderall XR from generic competi-
tion.
Its second-quarter profit jumped to
$160.5m (£101m) from $44.1m in the
year-ago period. Total revenue
climbed to $849.4m, from $629.7m
last year, a result of increased product
sales and higher royalties.
The firm posted non-GAAP earn-
To register for this event, visit:
www.rbs.co.uk/markets
The Royal Bank of Scotland plc (RBS) does not endorse any of the repor ts and other written materials provided by David Stevenson (the “Materials”) or any statements made by David Stevenson or Investors Intelligence (the “Statements”). RBS makes no war ranty or representation
whatsoeverr, express or implied, as to the contents of the Materials or Statements. RBS shall not be liable (whether in negligence or otherwise) to any person for any er ror in the Materials or Statements and RBS shall not be under any obligation to advise any person of any er ror
therein. The views expressed in the Materials or Statements represent the opinions of David Stevenson and not RBS. By attending an event, you acknowledge and agree that RBS does not review or endorse and shall not be liable directly or indirectly, for the content of such
Materials or Statements or the use that others make of these Materials or Statements, nor for any damage, loss or o ence caused or alleged to be caused by, or in connection with, the use of or reliance on any such Materials or Statements at such event. The Royal Bank of
Scotland plc, Registered in Scotland No 90312. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. RBS is authorised and regulated in the UK by the Financial Ser vices Authority. RBS is an authorised agent of The Royal Bank of Scotland N.V
ings per American depository share
of $1.03 on 35 per cent higher rev-
enue of $849m and said earnings
would trend towards $4.00 for the full
year.
Shire agreed to buy Movetis for
€428m (£354m), including its €100m
cash pile, on Tuesday, bolstering its
gastrointestinal business, the small-
est of its three major franchises.
Shire has been quick to take advan-
tage of Genzyme’s problems, with its
Fabry disease drug Replagal taking
share from Genzyme’s Fabrazyme,
and its Gaucher medicine Vpriv
▲
replacing Cerezyme. Fabry disease is
one where the sufferer has trouble
breaking down fat in the body.
FAST FACTS | SHIRE
● Shire’s second-quarter profit jumped to
$160.5m (£101m) from $44.1m in the year-ago
period.
● Replagal sales were up 84 per cent to $82m
(£51.6m) during the second-quarter.
Last month BA flew 3.19m passengers down 2.6 per cent on a year ago
British Airways sees its
July passenger traffic fall
AVIATION
BY EMMA SADOWSKI
BRITISH AIRWAYS (BA) carried 2.6 per
cent fewer passengers in July com-
pared with the year before and said it
expected summer traffic volumes to
be lower than last year.
BA carried 3.19m passengers last
month, down from the 3.21m in July
2009, while its load factor -- a measure
of how well it fills its planes -- fell 0.6
percentage points to 84 per cent, it
Picture: PA
said yesterday.
It said that first and business-class
travel -- the most profitable part of its
passenger business -- rose 0.8 per cent
but that non-premium traffic
dropped 3.2 per cent.
“Year-on-year we’d expect to see
business [class] slightly weaker in
August ... due to promotions that
were running last year and because
higher prices are leading to a slow-
down in volumes,” said BA’s group
treasurer George Stinnes.
News 13
Arbuthnot is
optimistic as
profits rise
BANKING
▲
ARBUTHNOT Banking Group saw its
profits more than triple over the first
half of the year as all of its divisions
moved back into the black amid
improving economic conditions.
Pre-tax profit at the group rose to
£2.3m, up from £0.7m in the first six
months of 2009. The result came
despite a weakening at the private
banking arm Arbuthnot Latham,
where pre-tax profit for the period fell
from £0.7m last year to just £0.1m.
Chairman and chief executive
Henry Angest said the division’s “pru-
dent balance sheet management cur-
rently represents a significant
sacrifice of profit in favour of liquidi-
ty and long term stability”, adding
that Arbuthnot Latham grew cus-
tomer deposits by almost 15 per cent
since this time last year, to £335.5m.
The group’s retail banking arm,
Secure Trust Bank, saw pre-tax profit
increase 13 per cent to £4.6m over the
period, while the investment bank
Arbuthnot Securities moved back into
profit after a jump in secondary rev-
enue and corporate finance income.
“The current environment is pre-
senting good opportunities for
Arbuthnot and in the absence of
adverse economic developments, we
remain optimistic about the remain-
der of 2010 and beyond,” said Angest.
V. in cer tain jurisdictions.
 14 News CITYA.M. 5 AUGUST 2010

Bankruptcies fall 21pc but overstretched

Competition borrowers find other ways to go bust
probe hits ing the three months, according to released tomorrow.

▲
ECONOMY
accountancy firm RSM Tenon. Mark Sands of RSM Tenon said:
BY OLIVER SHAH

Sky Movies
PERSONAL bankruptcies fell to pre-
recession levels in the second quarter,
but the headline drop masked a rush
by troubled consumers for alternative
ways to resolve their woes.
Despite a 21 per cent year-on-year
decline in bankruptcies, 380 people
MEDIA which Sky has the incentive and abil- entered into insolvency every day dur-
▲
Debt relief orders (DROs) and indi-
vidual voluntary agreements (IVAs)
were among the procedures used by
individuals to avoid going bankrupt,
with the number of people opting for
them up 11 per cent and 16 per cent
respectively quarter-on-quarter.
The figures come ahead of official
statistics on bankruptcies due to be
“The huge drop in bankruptcies has
been countered by increases in other
insolvency options, making this
reduction a red herring. While we
welcome the fall in the numbers of
people turning to bankruptcy… there
is little change to the overall number
of people struggling with their
finances.”

BY STEVE DINNEEN ity to distort competition.

SKY will face an investigation by the
Competition Commission into the
dominance of its pay-TV movie serv-
ice.
Ofcom has requested the probe
after raising concerns over the prices
Sky is able to charge for new releases
and the lack of consumer choice.
The Competition Commission will
have a maximum of two years to
investigate the market. Ofcom began
its investigation into the pay-TV sec-
tor in 2007 after receiving complaints
from rivals.
This also led to sweeping changes
to the Premier League football mar-
ket, with prices being slashed, allow-
ing rivals including Virgin Media and
BT to launch competing services.
Ofcom said the referral related to
two movie markets, the first con-
cerning the rights to movies sold by
the major Hollywood studios to
broadcast films for the first time on
pay-TV.
The second concerns the wholesale
supply of pay-TV packages containing
movie channels, which are based on
those rights.
An Ofcom spokesman said: “We are
concerned in particular that the way
in which these movies are sold and
distributed creates a situation in
“The end result for consumers is
less choice, less innovation and high- CITY VIEWS: GIVEN BANKRUPTCIES ARE DOWN, DO YOU THINK PEOPLE’S
er prices.”
A Sky spokesman said: “There have FINANCES ARE STARTING TO RECOVER? Interviews by Sam Shepherd and Marion Dakers
never been so many ways to access
movies with innovation stretching
across a wide variety of channels and KEITH VALENTINE | AXCO INSURANCE INFORMATION SERVICES
platforms, including multiple ways to
access Sky Movies.
“Further prolonging this unneces- “People are beginning to find things a little easier, and are feeling a bit more confident. I have
sary investigation will only create noticed some small price increases, which might make it hard for some, but I think people are
uncertainty and serve to undermine
incentives to invest and innovate, generally feeling better in themselves. But if people are struggling, I don’t think we’ve got
which is bad news for consumers.” away from the idea of easy credit just yet – they need to show personal responsibility.”
The news was welcomed by Sky’s
rivals BT and Virgin Media. BT said it
was “pleased” by the decision. KIERON MCGAHAN | LONDON METROPOLITAN UNIVERSITY
The Competition Commission
could now change the way premium
movie rights are bought and sold by “The situation seems fairly similar to how things were last year, with people struggling to pay bills.
restricting aggregation or making the The government needs to put more pressure on lenders to be more flexible on repayments so that
sales process more contestable.
It could also force Sky to provide it’s easier for people to cope.”
wholesale access to its premium
movie content.
Tony Ballard, partner at media and
entertainment law firm Harbottle & SANTOSH NEPAL | CMA SHIPS
Lewis said: “Ofcom has said that
under the current regulations one
player will be enabled and incen- “I think we are still in the middle of the recovery, and people are still finding it hard. Banks are not
tivised to charge higher prices lending enough, which is stopping people and smaller businesses from growing. Though I think
because of its market power. So if the
Competition Commission does its there needs to be more regulation in the personal loans sector.”
stuff it will mean lower prices.”

Intel avoids fine as settles case over stifling rivals

TECHNOLOGY which managed to settle the US suppliers. “It’s a landmark settle-
▲

INTEL has agreed to stop using
threats and unfair discounts to
block its rivals, resolving a costly,
high-profile legal battle over accusa-
tions it illegally smothered competi-
tion for over a decade.
The world’s largest chip maker –
Federal Trade Commission (FTC)
complaint without paying a cent –
also pledged to grant rivals access
to its leading processor technology
for six years.
The deal bars Intel from retaliat-
ing against computer makers if
they do business with non-Intel
ment that really will have a strik-
ing effect on improving
competition in the market,” said
David Balto, a former FTC policy
director.
Intel has been under attack from
rivals for years over its aggressive
pricing and sales tactics.

The Finest Invitations BEST OF THE BROKERS

&
Stationery
ANALYSIS l Xstrata ANALYSIS l Savills ANALYSIS l BMW 43.14
1,100 p 1,079.00 p € 4 Aug
4 Aug 340 330.00
1,050 4 Aug 42

1,000 320
40
The Wren Press provides a comprehensive 950
300
38
range of fine luxury stationery from 900
280 36
850
bespoke corporate invitations
800 260 34
19 May 9 Jun 29 Jun 19 Jul 19 May 9 Jun 29 Jun 19 Jul 19 May 8 Jun 28 Jun 16 Jul
to personal stationery.
XSTRATA SAVILLS BMW
Xstrata’s interim results came in a little UBS gives Savills a “neutral” rating not- BMW’s surprisingly strong second quar-
For further information or to place an order, ahead of Evolution Securities’ expecta- ing that the property group’s share price ter underlines Morgan Stanley’s confi-
please call us on 020 7351 5887. tions, and it maintains its “add” rating on is up 22 per cent from its lows in late dence in peak earnings per share
the mining group. It notes that the com- June. UBS believes there is upside risk in potential of €7 by 2013. While some fac-
pany’s focus was on its change of strate- Savills from a potential recovery in the tors supporting second quarter margins
The Wren Press, 1 Chelsea Wharf gy and $14bn growth pipeline. Evo global real estate market but believes will fade, a raft of supporting factors
15 Lots Road, London SW10 0QJ expects the key areas of growth to be in that the downside stems from the risk should more than compensate, it says.
copper and nickel, although the compa- of a second half slowdown in Asia Morgan Stanley gives the luxury car
www.wrenpress.com ny is also spending money in coal. Pacific and the UK. group an “overweight” rating.
To appear in Best of the Brokers email your research to notes@cityam.com
CITYA.M. 5 AUGUST 2010 News 15

AOL losses to US BILLIONAIRES PLEDGE WEALTH TO CHARITY NEWS | IN BRIEF

Lenders sell off Connaught loans
Lenders to troubled housing mainte-
nance firm Connaught have begun to sell

top $1bn due off their loans to private equity firms.

Barclays has already disposed of its
exposure, while other non-primary
lenders Bank of Ireland and Lloyds are
understood to have made moves to sell
out. “It’s just a sensible move to get rid

to writedown of such risky assets,” a person close to

the situation said. Meanwhile,
Connaught is readying a stock market
announcement following auditor
Deloitte’s recent review of its accounting
practices. The banks and Connaught
declined to comment.
TECHNOLOGY track record of growth,” he said.
▲

BY HARRY BANKS
AOL yesterday posted a major loss in
the second quarter due to a goodwill
impairment charge related to its sale
of social networking site Bebo and a
precipitous drop in advertising rev-
enue.
The company warned in a regulato-
ry filing that it expects total revenue
and operating income to decline for
the foreseeable future as it continues
to restructure its advertising business.
AOL’s revenue fell 26 per cent to
$584.1m (£367.6m) as advertising
declined on all fronts as did its dial-
up subscription fees. Analysts had on
average been expecting revenue to
come in around $602.1m. Advertising
revenue declined 27 per cent to
$260.2m.
AOL chief executive Tim Armstrong
remained bullish about the prospects
of the company despite the weak dis-
play advertising numbers, a key plank
of his management team’s strategy.
“I would expect us in 2011 to start
getting on a very stable ground and
Net loss during the quarter was Bond St tube gets £300m facelift
$1.06bn, or $9.89 a share, compared Transport for London (TfL) has awarded
with a profit of $90.7m, or 86 cents a a £300m contract to Costain and Laing
share a year ago. O’Rourke to redevelop Bond Street Tube
AOL recorded a goodwill impair- station, with the upgrades expected to
ment charge of $1.4bn during the take up to seven years. Once finished,
quarter following a goodwill impair- Bond Street station is expected to have
ment charge test. The company’s net a new entrance and ticket hall north of
assets had increased due to a signifi- Oxford Street, new escalators, improved
cant deferred tax asset following its interchanges between the Jubilee and
sale of Bebo, which had coincided Central lines and an increased capacity
with a decline in its share price. ahead of the Crossrail completion. TfL
AOL sold Bebo to Criterion Capital said the redevelopment of the station is
Partners for around $10m June, just part of its overall plan to meet increas-
two years after it had paid $850m for it. ing passenger numbers.
ANALYSIS l AOL Cookson returns to pre-tax profit
25 $ Materials science firm Cookson moved
24
into pre-tax profit for the first half of
22.75 the year, and expects performance to
23 4 Aug improve during the rest of the year.
Revenues rose to £1.23bn for the half,
22
translating to £92.5m pre-tax profit. The
21 OVER 30 US billionaires pledged yesterday to give away at least 50 per cent of their wealth world’s biggest producer of ceramic
to charity as part of a campaign by investor Warren Buffett and Microsoft founder Bill smelting liners said it won’t resume its
20 Gates. Among those joining the campaign are from top left clockwise: New York Mayor interim dividend despite the strong per-
19
Michael Bloomberg, entertainment executive Barry Diller, energy tycoon T. Boone Pickens, formance that saw earnings per share
10 May 28 May 18 Jun 9 Jul 29 Jul David Rockefeller, media mogul Ted Turner and Oracle co-founder Larry Ellison. jump to 23.4p from a loss of 42.6p.

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

BNY Mellon
Curtis Arledge, formerly chief investment offi-
cer for BlackRock’s fundamental fixed income
portfolio, is to join BNY Mellon as vice chair-
man of the corporation and chief executive of
BNY Mellon Asset Management.
Arledge also previously worked as co-head
of US fixed income at BlackRock, and has over
two decades of asset management and invest-
ment banking experience. He is due to take up
his new role in the fourth quarter of this year.
Barclays Wealth
The wealth management firm has
expanded its alternative investment
origination and distribution teams with
four new appointments.
Boudewijn Jansen joins as head of
private equity origination from HSBC
Alternative Investments. Sarah
Newman moves over from Credit
Suisse to become head of hedge fund
origination. Jamie Murray joins as a
director to lead the EMEA alternative
investment distribution, having previ-
ously worked at PR firm Broadgate
Mainland as associate director respon-
sible for hedge fund public relations.
Emily Smart also joins the distribution
team from UBS Wealth Management
as a hedge fund specialist.
Deutsche Bank
The German bank has poached Andrew
Thompson, one of Citi’s top corporate
brokers, as a managing director in its
own UK corporate broking team.
Thompson has over twenty years of
experience in corporate broking, having
previously worked at ABN Amro Hoare
Govett. In his new role, he will cover UK
and Irish clients with a particular focus
on the financial institutions sector.
Union Bancaire Privée
Rob Jones is joining the Swiss private
bank as head of the new European equi-
ties team, based in London.
Jones formerly managed pan-
European equity funds at Threadneedle
and starts his new role in November.

To appear in CITYMOVES please email your career

updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
morganmckinley.com

Whole Native Lobster & Chips

£24.50
With A Glass Of J&B NV Champagne

Subject to availability until 16th August

Celebrating Justerini & Brooks 250th Anniversary

Boisdale of Belgravia - Boisdale of Bishopsgate - The Lamb at Hindon
15 Eccleston Street, Swedeland Court, Hindon near Salisbury,
London, SW1W 9LX 202 Bishopsgate Wiltshire, SP3 6DP
020 7730 6922 London, EC2M 4NR 01747 820 573
020 7283 1763

www.boisdale.co.uk
 Investment
16 CITYA.M. 5 AUGUST 2010

| Listed Products

Seek exposure
to a broad set
of EU stocks
Cheap valuations and UBS’s global strategy team last week
upgraded Europe (including the UK) to
overseas sales make neutral from underweight and remain
bullish about the region’s prospects
thanks to robust earnings, stress tests
certain sectors in that offered at least some transparency
and positive economic surprises.
Europe attractive, Karen Olney and Nick Nelson,
European equity strategists at UBS,
writes Jessica Mead explain: “We continue to promote the
merits of a region that started the year on
the wrong end of the popularity

A
FTER a tumultuous and testing
first six months of 2010 for
Europe, a calmer and less chaotic
second half appears to lie ahead.
This is, perhaps, unsurprising – after all
we have just endured a sovereign debt cri-
sis and a stagnation of growth, which
sent stock markets sharply southwards.
The more optimistic outlook – it would
arguably be difficult to be substantially
more pessimistic – has caused a number
of strategists, such as UBS, to revise their
position on Europe.
contest…it has compelling valuations, eco-
nomic data and relief for the banks to
boot.”
Yet despite analysts’ more upbeat out-
look, investors still need plenty of con-
vincing that European equities are the
place to invest and remain sceptical. But European drinks firms are a number of types of stocks that ties has rarely looked this compelling ver-
with attractive valuations, there are plen- are ramping up their investors should consider. First, dividend- sus other asset classes and we would sug-
ty of possibilities for exchange-traded overseas exposure paying stocks. ETF investors do receive gest buying dividends for returns in what
funds (ETFs) investors to get cheap expo- dividend payments providing that the could be a range bound market.”
sure to a region that has been oversold underlying securities pay dividends. Through BlackRock’s iShares, you can
since the start of 2010. These are either reinvested (accumulated) buy the iShares Euro Stoxx Select
According to Olney and Nelson, there or distributed. Olney says: “Yield on equi- Dividend 30, which offers exposure to the

THE EUROPEAN BANK

SECTOR MARCHES Bearish sentiment
TOWARD THE RUBICON
GEOFF WILKINSON
HEAD OF INVESTMENT RESEARCH,
boosts short ETFs
MINT EQUITIES
Investors remain fearful for the So what exactly are investors selling?

I
T HAS been a good couple of weeks for the
European banking sector. Firstly, the stress
test results for banks across Europe were
good; secondly, profits for the second quar-
ter have been impressive. As you can see in the
chart below, the European banking sector has
pushed on strongly this week. However, we
across the proverbial Rubicon.
Still, like most things technical, for
European stocks to make a meaningful jour-
ney higher, it is imperative that investors
make the essential breakthrough higher.
If investors get cold feet and aren’t as
enthusiastic as we might have been led to
ETF Securities can only offer short equity
future and want exposure to the products on European indices and has
most recently noticed that investors were-
downside, writes Kathleen Brooks keen to short the Dax, the German stock
index, the FTSE 100 and the Euro Stoxx 50
index.
VOLATILE EQUITY MARKETS

T
have yet to close above two key levels, which expect, this could limit any upside. But if there HE global economy is at a crossroads. A short ETF position
now remain pivotal to further medium-term is no meaningful break of the resisitence Fears about a slowdown in China, can reap benefits in Wills says that this bearish activity is a
gains. level – shown on the chart below – then this persistently high unemployment in these uncertain times reflection of the ebbs and flows in the
The index has yet to rise above the 231-236 would be a bearish signal that woud suggest the US and ongoing concerns about equity market between risk on and risk off:
level, which is significant downward resist- a leg lower for banking stocks. sovereign debt problems in Europe all “Investors are keen to take advantage of
ance. Until it can break this, then the banking Because financials are such a large part of threaten to weigh on financial markets in the volatility and that is fuelling interest in
index is in a classic downtrend. the index, if they don’t gather some speed the coming weeks. short, leveraged products.”
In theory, with all of this good news it then European equities could stagnate. But the Vix index, the traditional fear But how reliable is this data at signalling
shouldn’t take too much from here to negate gauge for financial markets, has steadily investor sentiment? ETF Securities is one of
the prevailing downtrend and to move higher ticked down in recent weeks; it is currently the major ETF providers in the capital, so it
again. If this transpires, this would constitute at 23 after spiking above 40 in May – the is a fairly good gauge of sentiment. When
a significant positive for the broader peak of Europe’s sovereign debt crisis. But the short leveraged ETF launched in June
European equity market as well. Clearly, while the Vix may have moved to more 2009 it was the start of the equity market
though, we have been here before and (twice) comfortable territory, according to data bull run that lasted until April this year.
been disappointed as the requisite “new” buy- from ETF Securities, investors in its Back then, the number of short equity
ing interest has not materialised to carry us exchange-traded funds (ETF) have turned ETF’s sold totalled about 50 per cent of
decidedly bearish since April. total equity sales, according to Wills.
ANALYSIS l Euro Stoxx 600 banking index Short equity ETFs have dominated trad- However, that has increased in the past
290 ing, accounting for almost two-thirds of three months, rising to just under two-
270 trade last week alone. By comparison, thirds at the end of last week.
250 short ETFs have averaged just under half of Because they are leveraged they are fair-
230 231-236 weekly turnover since the start of 2010. ly sophisticated and Wills says that the
210 Daniel Wills, senior analyst at ETF bulk of interest in short leveraged ETFs
190 Securities, says that Europe’s sovereign with his firm has come from institutional
debt crisis kick-started the craze for short investors. However there has been increas-
170
ETFs. However, even though a sovereign ing interest from the retail space in recent
150
default is unlikely in the short-term due to months.
130 the European Union’s and International If you agree that financial markets are at
110 Monetary Fund’s bailout plan, ETF an important juncture and there could be
90 investors are still shorting the equity mar- more volatility ahead, a short ETF will give
Oct 08 Dec 08 Mar 09 June 09 Sep 09 Dec 09 Apr 10 Jul 10 Oct 10 Jan 11 kets. you exposure to the downside.
CITYA.M. 5 AUGUST 2010
30 highest dividend-paying Eurozone
stocks from each country included in
the Euro Stoxx. Lyxor also offers a Euro
Stoxx 50 Dividends ETF denominated in
both sterling and euros. This ETF com-
prises five Euro Stoxx 50 Index Dividend
futures and aims to give long-term expo-
sure to dividends as an asset class.
INTERNATIONAL EXPOSURE
Second, you could consider German
equities thanks to both the country’s
relative strength and its companies’
international exposure. A weak euro
will also have helped its exporters’ com-
petitiveness. Deutsche Bank’s db x-
trackers offers an ETF on the Dax 30,
the German blue-chip stock index, with
a total expense ratio (TER) of just 0.15
per cent. You can also buy call covered
warrants on the Dax with both Societe
Generale and RBS with a variety of
strike prices and expiry dates.
Investors should also look at sectors
that have constituents with strong
emerging market exposure because
these stocks should continue to benefit
from faster growth in Asia even if the
European economy does suffer from a
renewed loss of confidence.
As the graphic shows, those
European sectors with the greatest
exposure in terms of sales are technolo-
gy, basic resources, food and beverage
and oil and gas. Db x-trackers offers sec-
toral ETFs, which track the relevant DJ
Stoxx 600 indices. These will give you
diversified exposure to the European
sector and all have TERs of 0.5 per cent.
Europe might be down, but it is cer-
tainly not out. While the outlook is pos-
itive but still tenuous, investors should
seek diversified exposure to income-
paying stocks and those with plenty of
business in emerging markets.
MARKET NEWS
JULIET SAMUEL
New cocoa products launched
IS METRO BANK 17
REALLY WORTH IT?
FIND OUT IN FRIDAY’S
PERSONAL FINANCE PAGE
ANALYSIS l Sales exposure of European sectors to Emerging markets Aquarius Platinum
Technology might have to close
Basic Resources
Food & Beverages one of its South
Source: Bank of America-Merrill Lynch
Oil & Gas African mines for
Chemicals
Health Care seven weeks.
Telecommunications
Personal & Household
Industrial Goods & Services Picture: GETTY
Construction & Materials
Automobiles & Parts
Banks
Insurance
Financial Services
Media
Retail
% Sales to emerging and others
Travel & Leisure
Utilities
0 10 20 30 40 50
THE
TIPSTER
MINING STOCKS NEWS
COULD SHIFT PRICES
It’s a busy day for central bankers.
B The Bank of England (BoE) and
European Central Bank (ECB) both
announce the outcome of their lat-
est rate-setting meetings. Market partici-
pants expect a “no change” decision. But the
market will get excited by the ECB’s state-
ment this afternoon. This should tell us how
happy the Bank is with the ongoing eco-
nomic recovery. This will give plenty of
opportunities for profitable trades.
As for where to focus, UK banking
stocks have so far released bumper results
and the broader market has had a good
week so far, despite falling from its earlier
highs. RBS will not want to miss out on the
party, especially after Lloyds announced
such good figures on Wednesday. We
might see a test of its 2010 highs around
58p before too long. Capital CFDs quotes a
price of 51.8p-52.2p.
The FTSE has struggled to break
through and above its 200-day moving
average, which would be a key indicator of
a reversal in trend. Until it does, pressure
will remain on the index to the downside as
the economic outlook remains uncertain.
Capital Spreads quotes a price of 5332.0-
5333.0.
Aquarius Platinum has been trading
close to its 52-week low since the news
last week that it may have to close one of
its South African mines for seven months.
Watch for moves in the stock price as
today’s trading statement gives investors a
clearer idea of the outlook and how the
company will be dealing with this setback.
Cantor Index offers a spread of
272.20p–273.10p
In other mining stocks statements due,
today, we also expect Rio Tinto Plc (RIO),
which is the world’s third largest mining
company, to release its earnings. The firm has
been in the news recently for planning to
expand operations substantially in Australia.
Resistance is expected at 3,500p which coin-
cides with 26 June high whereas support is
noted at 3,185p and 2,980p. Spread Co
quotes Rio Tinto at 3,388p-3,395p.
Juliet Samuel
SOCGEN OFFERS NINE NEW WARRANTS BANKS AND TELECOMS FAVOURED HEDGE FUND ETF GETS THE GO-AHEAD
This week saw the launch of nine new covered The largest sector inflows among STOXX The Financial Services Authority has
warrants from Societe Generale. Four are Europe 600 exchange-traded funds (ETF) approved the release of a managed futures
cocoa call warrants; the rest are divided last week were in banks, at $150.9m, and ETF offered by Liechtenstein-based hedge
between two dollar-Swiss franc put warrants telecoms at $98.2m. The largest outflows fund Qbasis. The fund will give investors
that expire in December and three copper put came from industrial goods and services, access to the same investment strategy as
warrants. Meanwhile, RBS Markets has which saw $44.2m leave ETFs in this sector, practiced by Qbasis’ offshore managed
launched two new products: one is the UK and utilities, which lost $26.3m. So far this futures hedge fund, but will charge an extra
Accelerated Tracker 4, which offers investors a month, banks, basic resources and food & fee and have a minimum investment of
4.5 times return on rises of the FTSE 100 up to beverages have seen the largest inflows at €2,000 versus $100,000 for the hedge fund.
a cap. The other, the UK Synthetic Zero, gives a $124.9m, $119.5m and $108.2m respectively. Qbasis is now free to begin procedures for
9.25 per cent return provided the FTSE 100 The largest outflows in July were from media listing the fund on the London Stock
stays 50 per cent above its start date level on and oil & gas ETFs, at $41.7m and $54m Exchange, having already listed it on the
Picture: GETTY every valuation and observation date. respectively. Hamburg stock exchange in April.
 18 Markets & Investment CITYA.M. 5 AUGUST 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .284.10 –2.80 314.80 246.90 COLT Group . . . . . . . . . . . . . . . .127.00 –0.90 144.20 109.60 ITV . . . . . . . . . . . . . . . . . . . . . . . .51.10 –0.50 71.75 40.34 Sage . . . . . . . . . . . . . . . . . . . . . .239.30 –1.10 260.50 199.50
3i Infrastructure . . . . . . . . . . . . . 111.90 +0.10 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .549.00 +2.00 574.50 308.10 Jardine Lloyd Thompson. . . . . . .593.50 +0.50 604.50 420.70 Sainsbury(J) . . . . . . . . . . . . . . . .351.20 –1.10 373.00 307.60
A.B. Foods . . . . . . . . . . . . . . . .1037.00 –4.00 1096.00 777.00 Cookson . . . . . . . . . . . . . . . . . . .453.00 –25.60 616.00 341.30 Johnson Matthey . . . . . . . . . . .1724.00* –29.00 1814.00 1302.00 Schroders . . . . . . . . . . . . . . . . .1338.00 +7.00 1450.00 924.50
Aberdeen Asset Man . . . . . . . . . .139.80 –1.00 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1283.00 –20.00 1355.00 579.00 Kazakhmys . . . . . . . . . . . . . . . .1266.00 +4.00 1634.00 803.50 Schroders N/V. . . . . . . . . . . . . . 1104.00 +4.00 1185.00 804.50
Admiral. . . . . . . . . . . . . . . . . . .1509.00 –9.00 1520.00 947.50 CSR . . . . . . . . . . . . . . . . . . . . . .337.70 –11.30 524.00 337.70 Kesa Electricals . . . . . . . . . . . . .133.30 –0.50 162.00 98.45 Scot. & Sthrn Energy. . . . . . . . . 1133.00* +8.00 1206.00 357.50
Aegis . . . . . . . . . . . . . . . . . . . . . 117.20 — 137.30 84.25 Daily Mail ‘A’ . . . . . . . . . . . . . . . .495.10 +1.30 539.00 299.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .216.30 –7.50 255.00 196.50
Afren . . . . . . . . . . . . . . . . . . . . . .95.00 –0.20 111.00 52.50 Dana Petroleum . . . . . . . . . . . .1700.00 –8.00 1729.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .138.70 –1.40 174.29 114.60 Scottish Mortgage. . . . . . . . . . . .596.50 –3.00 623.50 439.70
African Barr Gold . . . . . . . . . . . .558.50 +15.50 685.00 520.50 Davis Service . . . . . . . . . . . . . . .392.60 +0.60 442.30 336.60 Lancashire Hldgs . . . . . . . . . . . .538.50 +3.50 545.00 416.70 SEGRO . . . . . . . . . . . . . . . . . . . .277.20 +0.50 403.10 244.00
Aggreko . . . . . . . . . . . . . . . . . .1579.00 +17.00 1639.00 546.00 De La Rue . . . . . . . . . . . . . . . . . .776.00* +14.50 1021.00 725.50 Land Securities . . . . . . . . . . . . . .621.50 –7.00 743.50 524.50 Serco . . . . . . . . . . . . . . . . . . . . .560.50 +2.00 656.50 394.30
Alliance Trust . . . . . . . . . . . . . . .321.00 +0.10 352.70 281.00 Debenhams . . . . . . . . . . . . . . . . .63.30 –2.35 91.95 51.95 Legal & General . . . . . . . . . . . . . .89.65 –1.15 94.70 57.00 Severn Trent . . . . . . . . . . . . . . .1343.00 –8.00 1355.00 921.00
AMEC . . . . . . . . . . . . . . . . . . . . .915.00 +18.50 917.00 693.50 Derwent London . . . . . . . . . . . .1382.00 –17.00 1490.00 956.50 Lloyds Banking Gp . . . . . . . . . . . .74.49 +2.57 75.58 45.30 Shaftesbury . . . . . . . . . . . . . . . .408.00 –0.80 426.50 330.00
Amlin . . . . . . . . . . . . . . . . . . . . .427.50 +1.10 433.40 330.00 Dexion Absolute . . . . . . . . . . . . .138.50 –0.20 148.00 121.10 Logica . . . . . . . . . . . . . . . . . . . .109.90 –1.70 149.10 100.80 Shire. . . . . . . . . . . . . . . . . . . . .1429.00 –44.00 1526.00 850.00
Anglo American . . . . . . . . . . . .2587.00 –17.00 3015.50 1777.50 Diageo . . . . . . . . . . . . . . . . . . . 1123.00 +5.00 1176.00 912.50 London Stk Exchange . . . . . . . . .666.00* –7.00 949.50 540.50 Smith & Nephew . . . . . . . . . . . . .560.00 –1.50 700.50 458.60
Antofagasta . . . . . . . . . . . . . . .1018.00 –19.00 1100.00 680.00 Dimension Data . . . . . . . . . . . . .121.60 +0.10 125.50 55.00 Lonmin . . . . . . . . . . . . . . . . . . .1657.00 +12.00 2198.00 1330.00 Smith(Ds) . . . . . . . . . . . . . . . . . .144.10 –0.90 150.20 75.90
Aquarius Platinum . . . . . . . . . . .279.10 +6.50 490.00 211.50 Domino’s Pizza . . . . . . . . . . . . . .415.00* +1.70 431.30 228.40 Man . . . . . . . . . . . . . . . . . . . . . .225.90 –1.70 373.60 199.60 Smiths . . . . . . . . . . . . . . . . . . . 1136.00 –2.00 1186.00 730.50
ARM Holdings . . . . . . . . . . . . . . .315.50 +3.40 370.00 120.50 Drax . . . . . . . . . . . . . . . . . . . . . .386.00 –0.80 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .350.20 –10.40 412.70 321.90 SOCO Intl . . . . . . . . . . . . . . . . . .444.50 +5.50 446.20 380.60
Arriva . . . . . . . . . . . . . . . . . . . . .770.50 — 782.50 428.20 DSG Intl . . . . . . . . . . . . . . . . . . . .26.93 –0.63 39.75 23.32 Meggitt . . . . . . . . . . . . . . . . . . . .296.00 +1.40 331.00 182.00 Spectris . . . . . . . . . . . . . . . . . . .896.50 –16.00 949.00 556.50
Ashmore . . . . . . . . . . . . . . . . . . .281.90 –2.00 311.20 211.60 Dunelm . . . . . . . . . . . . . . . . . . . .396.60 –7.20 438.40 250.70 Melrose . . . . . . . . . . . . . . . . . . .233.00 –2.30 251.50 118.10
Astrazeneca . . . . . . . . . . . . . . .3237.50 –44.50 3376.00 2668.00 Easyjet . . . . . . . . . . . . . . . . . . . .395.70 –5.30 499.90 293.50 Mercantile IT . . . . . . . . . . . . . . . .971.00 +3.00 1002.00 820.00 Spirax-Sarco Eng . . . . . . . . . . .1540.00 –7.00 1617.00 909.50
Atkins(Ws) . . . . . . . . . . . . . . . . .772.00 +12.00 772.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .399.20 –0.70 412.40 315.60 Michael Page Intl. . . . . . . . . . . . .404.20 +2.60 461.50 289.10 Spirent Comms . . . . . . . . . . . . . .128.30 –1.10 135.90 68.00
Autonomy Corp . . . . . . . . . . . .1666.00 –1.00 2012.00 1190.00 Electrocomponents . . . . . . . . . . .222.20 –0.10 245.00 142.90 Micro Focus . . . . . . . . . . . . . . . .414.60 –2.70 550.00 300.90 Sports Direct Intl . . . . . . . . . . . . .108.00 –3.80 134.00 81.80
Aveva . . . . . . . . . . . . . . . . . . . .1330.00 –13.00 1375.00 805.00 EnQuest . . . . . . . . . . . . . . . . . . . 112.60 –3.40 121.40 87.35 Millen & Copthorne . . . . . . . . . . .476.00 –11.60 504.00 286.00 SSL Intl . . . . . . . . . . . . . . . . . . . 1168.00 –9.00 1190.00 522.50
Aviva . . . . . . . . . . . . . . . . . . . . .367.90 –8.60 474.00 290.20 Essar Energy . . . . . . . . . . . . . . .425.90 –1.60 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .253.40 –1.10 281.70 173.90 St James’s Place . . . . . . . . . . . . .271.30 –6.20 296.90 185.80
Babcock International . . . . . . . . .566.50 +7.50 660.50 459.80 Eurasian Nat Res . . . . . . . . . . . .962.50 +23.00 1276.00 731.00 Mitchells & Butlers . . . . . . . . . . .318.00 +3.60 343.90 228.30 Stagecoach. . . . . . . . . . . . . . . . .173.60 –3.40 204.90 126.20
BAE Systems . . . . . . . . . . . . . . .324.60 +3.80 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .615.00 –5.00 630.00 237.00 MITIE . . . . . . . . . . . . . . . . . . . . .212.70* +2.90 281.70 195.20 Standard Chartered . . . . . . . . . .1804.00 –98.50 1927.00 1310.00
Balfour Beatty . . . . . . . . . . . . . . .262.50 +3.20 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .634.00 — 664.50 488.60 Mondi . . . . . . . . . . . . . . . . . . . . .463.90 +3.10 488.00 258.30 Standard Life . . . . . . . . . . . . . . . 211.60 –0.70 237.00 170.00
Barclays . . . . . . . . . . . . . . . . . . .339.85 –2.90 394.25 253.40 Ferrexpo . . . . . . . . . . . . . . . . . . .299.90 +4.00 396.20 138.00 Monks Inv Tst . . . . . . . . . . . . . . .295.50* +0.50 321.20 240.00 SuperGrp . . . . . . . . . . . . . . . . . .918.00 –26.50 1030.00 499.00
Barratt Development . . . . . . . . . .105.00 +1.50 193.31 89.10 FirstGroup . . . . . . . . . . . . . . . . .379.70* +0.20 448.80 331.20 Morgan Crucible . . . . . . . . . . . . .228.60 +2.60 229.50 121.00 TalkTalk . . . . . . . . . . . . . . . . . . .120.00 –2.00 147.10 106.60
BBA Aviation . . . . . . . . . . . . . . .203.00 –2.90 220.00 136.60 Foreign & Col Inv Tst. . . . . . . . . .274.30 +0.10 297.20 229.50 Morrison Wm . . . . . . . . . . . . . . .270.90 –1.90 306.30 255.00 Talvivaara Mining . . . . . . . . . . . .417.00 –2.30 501.50 341.40
Beazley. . . . . . . . . . . . . . . . . . . . 117.70 –2.30 125.80 95.25 Fresnillo . . . . . . . . . . . . . . . . . .1098.00 +28.00 1139.00 539.50 Murray Intl Tst . . . . . . . . . . . . . . .862.00* –4.00 893.50 632.00 Tate & Lyle . . . . . . . . . . . . . . . . .456.70 +5.40 509.00 356.20
Bellway. . . . . . . . . . . . . . . . . . . .614.50 +13.50 927.50 554.00 G4S . . . . . . . . . . . . . . . . . . . . . .264.10 — 285.70 208.50 National Express. . . . . . . . . . . . .240.40 +0.30 258.60 155.86
Berkeley . . . . . . . . . . . . . . . . . . .818.50 –3.50 989.50 735.00 Genesis Emerging Mkts Fd . . . . .473.00 –0.40 484.00 370.00 National Grid . . . . . . . . . . . . . . .532.00* +7.00 607.65 474.80 Taylor Wimpey . . . . . . . . . . . . . . .30.76 –0.34 54.90 24.29
BG . . . . . . . . . . . . . . . . . . . . . .1040.00 –16.00 1248.00 966.90 GKN . . . . . . . . . . . . . . . . . . . . . .145.00 +0.90 155.00 100.20 Next . . . . . . . . . . . . . . . . . . . . .2029.00 –170.00 2360.00 1601.00 Telecity . . . . . . . . . . . . . . . . . . . .424.70 +4.20 458.90 300.00
BHP Billiton . . . . . . . . . . . . . . .2009.00 –10.50 2346.00 1481.00 GlaxoSmithKline . . . . . . . . . . . . 1130.00* –8.50 1347.00 1088.00 Northumbrian Water . . . . . . . . . .335.80 –5.00 341.30 219.90 Templeton Emrg Mkts . . . . . . . . .551.00 –2.00 598.00 390.00
BlackRock Mining . . . . . . . . . . . .567.00 –9.00 654.50 413.00 Great Portland Estates . . . . . . . .312.60 –3.70 332.10 231.40 Old Mutual . . . . . . . . . . . . . . . . .121.60 –1.00 127.20 85.80 Tesco . . . . . . . . . . . . . . . . . . . . .401.20 –0.30 454.90 361.20
Booker . . . . . . . . . . . . . . . . . . . . .43.44 +0.31 49.50 33.00 Greene King . . . . . . . . . . . . . . . .445.50 –3.50 504.00 372.50 Pace . . . . . . . . . . . . . . . . . . . . . .209.50 –3.00 243.80 145.00 Thomas Cook . . . . . . . . . . . . . . .190.40 –0.60 277.20 172.30
BP . . . . . . . . . . . . . . . . . . . . . . .421.65 +6.00 658.20 296.00 Halfords . . . . . . . . . . . . . . . . . . .486.70* –3.60 562.50 324.00 Partygaming . . . . . . . . . . . . . . . .301.10 –7.80 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .322.70 –1.30 325.70 155.00
Brit Insurance . . . . . . . . . . . . . .1001.00 +2.00 1017.00 709.00 Halma . . . . . . . . . . . . . . . . . . . . .283.10* –0.70 298.70 186.60 Pearson . . . . . . . . . . . . . . . . . .1018.00 +15.00 1069.00 682.00 Travis Perkins . . . . . . . . . . . . . . .869.00 –4.50 915.00 647.50
British Airways . . . . . . . . . . . . . .233.10 –2.90 255.80 143.60 Hammerson . . . . . . . . . . . . . . . .385.80 –3.60 460.30 332.20 Pennon . . . . . . . . . . . . . . . . . . . .599.00 –1.00 603.00 434.40 TUI Travel . . . . . . . . . . . . . . . . . .217.90 –0.60 313.90 202.30
British Amer. Tob . . . . . . . . . . .2252.00 +18.00 2335.50 1807.00 Hargreaves Lansdown . . . . . . . .369.30 –1.30 387.00 214.00 Persimmon . . . . . . . . . . . . . . . . .383.50 +3.80 534.50 340.20 Tullett Prebon . . . . . . . . . . . . . . .375.00 –3.40 436.20 261.20
British Empire Tst . . . . . . . . . . . .439.20 +1.20 467.90 338.50 Hays . . . . . . . . . . . . . . . . . . . . . . .93.95 +0.65 119.00 88.05 Petrofac . . . . . . . . . . . . . . . . . .1325.00 +26.00 1372.00 803.00 Tullow Oil . . . . . . . . . . . . . . . . .1298.00 +14.00 1375.00 979.50
British Land . . . . . . . . . . . . . . . .457.10* –12.40 532.00 416.00 Henderson . . . . . . . . . . . . . . . . .134.20 +0.30 157.80 108.50 Petropavlovsk . . . . . . . . . . . . . .1060.00 +11.00 1370.00 601.00 UK Commercial Prop. . . . . . . . . . .76.70* +0.90 84.90 65.25
Britvic. . . . . . . . . . . . . . . . . . . . .486.00 +11.70 518.00 324.80 Heritage Oil. . . . . . . . . . . . . . . . .456.30 +6.40 587.00 368.70 Premier Farnell . . . . . . . . . . . . . .244.50 +1.90 252.60 140.60 Ultra Electronics . . . . . . . . . . . .1652.00 +2.00 1681.00 1164.00
Brown(N.) . . . . . . . . . . . . . . . . . .237.10 –0.60 284.30 204.80 Hikma Pharma . . . . . . . . . . . . . .718.50 –3.00 746.00 434.70 Premier Oil . . . . . . . . . . . . . . . .1540.00 –8.00 1610.00 984.00
BSkyB . . . . . . . . . . . . . . . . . . . .716.00 +5.00 732.00 521.00 Hiscox . . . . . . . . . . . . . . . . . . . .362.60 +4.40 369.30 299.20 Provident Financial . . . . . . . . . . .837.50 +4.00 986.00 795.00 Unilever . . . . . . . . . . . . . . . . . .1831.00 +29.00 2024.00 1524.00
BT . . . . . . . . . . . . . . . . . . . . . . .143.50 –0.10 151.00 108.40 Hochschild Mining . . . . . . . . . . .313.50 +7.00 370.60 220.00 Prudential . . . . . . . . . . . . . . . . . .568.50 –3.50 665.00 432.80 United Utilities . . . . . . . . . . . . . .599.00 +6.00 600.50 429.00
Bunzl . . . . . . . . . . . . . . . . . . . . .700.50 +3.50 784.50 514.00 Home Retail . . . . . . . . . . . . . . . .235.20 –9.30 336.50 208.50 PZ Cussons . . . . . . . . . . . . . . . .332.30 –8.20 373.20 210.10 Utd Business Media . . . . . . . . . .561.00 — 579.50 408.30
Burberry . . . . . . . . . . . . . . . . . . .859.50* –4.50 886.50 440.20 Homeserve . . . . . . . . . . . . . . . . .463.80* +14.80 472.00 435.40 Qinetiq . . . . . . . . . . . . . . . . . . . .123.50 –2.00 179.10 113.90 Vedanta Resources . . . . . . . . . .2569.00* +20.00 2967.00 1616.00
Cable & Wire Comms . . . . . . . . . .61.10* +0.55 150.00 53.00 HSBC Hldgs . . . . . . . . . . . . . . . .672.00 +0.60 766.80 595.20 Randgold Resources. . . . . . . . .5715.00 +160.00 6600.00 3351.00 Victrex . . . . . . . . . . . . . . . . . . .1248.00 +20.00 1320.00 613.50
Cable & Wire Wwide . . . . . . . . . . .67.35* –0.65 94.80 64.85 Hunting . . . . . . . . . . . . . . . . . . .550.00 +6.00 659.50 423.20 Reckitt Benckiser . . . . . . . . . . .3164.00 –56.00 3667.00 2686.00 Vodafone . . . . . . . . . . . . . . . . . .150.05* +1.95 153.80 123.50
Cairn Energy. . . . . . . . . . . . . . . .474.30 –2.80 485.30 306.80 ICAP . . . . . . . . . . . . . . . . . . . . . .403.40* –8.60 478.30 291.70 Reed Elsevier . . . . . . . . . . . . . . .556.00 –5.00 566.00 414.00 Weir . . . . . . . . . . . . . . . . . . . . .1210.00 –16.00 1266.00 585.00
Caledonia Invs . . . . . . . . . . . . .1609.00 –3.00 1759.00 1496.00 IG . . . . . . . . . . . . . . . . . . . . . . . .487.00 +0.80 492.20 291.00 Regus . . . . . . . . . . . . . . . . . . . . . .74.55 –0.25 125.50 68.65 WH Smith . . . . . . . . . . . . . . . . . .425.10 –2.60 551.00 396.00
Capita . . . . . . . . . . . . . . . . . . . . .713.50 –5.50 829.50 643.50 Imagination Tech Gp . . . . . . . . . .343.80 +11.80 345.60 149.75 Renishaw . . . . . . . . . . . . . . . . . .879.00 +8.50 879.50 411.70 Whitbread . . . . . . . . . . . . . . . . .1437.00 –2.00 1645.00 881.50
Capital & Counties . . . . . . . . . . . 113.00 –0.40 125.40 99.60 IMI . . . . . . . . . . . . . . . . . . . . . . .726.00 –2.50 786.00 351.40 Rentokil Initial . . . . . . . . . . . . . . .105.10 –1.10 140.20 94.10 William Hill . . . . . . . . . . . . . . . . .170.20 +0.10 217.80 160.50
Capital Shopping Centres . . . . . .338.70 –0.80 580.00 300.10 Imperial Tobacco. . . . . . . . . . . .1830.00* +9.00 2159.00 1642.00 Rexam . . . . . . . . . . . . . . . . . . . .307.40 –2.90 348.80 222.50 Witan Inv Tst . . . . . . . . . . . . . . . .447.50 +4.10 487.00 365.50
Carillion . . . . . . . . . . . . . . . . . . .313.70 –0.80 361.90 263.90 Inchcape. . . . . . . . . . . . . . . . . . .299.40 –9.00 347.00 235.00 Rightmove . . . . . . . . . . . . . . . . .661.00 –6.00 729.00 399.50
Carnival . . . . . . . . . . . . . . . . . .2351.00 +22.00 2937.00 1734.00 Informa . . . . . . . . . . . . . . . . . . . .396.30 +2.40 439.40 250.20 Rio Tinto . . . . . . . . . . . . . . . . . .3412.00 –21.50 4104.00 2205.00 Wolseley . . . . . . . . . . . . . . . . . .1483.00 +21.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .387.00 –1.00 394.60 303.20 Inmarsat . . . . . . . . . . . . . . . . . . .722.50 –22.50 831.00 491.00 RIT Capital Partners . . . . . . . . . 1169.00 +3.00 1215.00 913.50 Wood Group (John). . . . . . . . . . .373.00 –9.00 411.70 267.70
Centamin Egypt . . . . . . . . . . . . .159.30 +6.70 174.75 80.00 Intercontl Hotels . . . . . . . . . . . . 1131.00 +10.00 1244.00 671.50 Rolls Royce . . . . . . . . . . . . . . . .574.50 +4.50 631.50 406.60 WPP . . . . . . . . . . . . . . . . . . . . . .682.50 –1.50 744.00 458.60
Centrica . . . . . . . . . . . . . . . . . . .319.10 –1.90 324.20 216.00 Intermediate Capital . . . . . . . . . .264.60* –5.20 332.00 211.50 Rotork . . . . . . . . . . . . . . . . . . .1504.00 –8.00 1537.00 875.00 Xstrata . . . . . . . . . . . . . . . . . . .1079.00 +7.00 1344.50 713.00
Charter Intl . . . . . . . . . . . . . . . . .689.00 –16.00 855.50 560.50 Intertek . . . . . . . . . . . . . . . . . . .1659.00 –3.00 1745.00 1042.00 Royal Bank Of Scot . . . . . . . . . . . .52.10 +0.05 58.95 28.25 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2899.00* –34.00 3711.00 1993.00 Intl Personal Fin . . . . . . . . . . . . .251.00 +1.60 283.00 128.25 Royal Dutch Shell A . . . . . . . . .1820.00 –15.00 2068.50 1521.50
Chloride Group . . . . . . . . . . . . . .373.20 +0.20 390.50 138.60 Intl Power . . . . . . . . . . . . . . . . . .371.30 +1.30 375.90 243.00 Royal Dutch Shell B . . . . . . . . .1751.00 –13.50 1997.50 1505.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .689.50 +3.50 806.50 660.50 Invensys . . . . . . . . . . . . . . . . . . .270.40* –3.30 350.30 234.50 RSA Insurance . . . . . . . . . . . . . .128.50 –0.90 142.00 114.10
Cobham . . . . . . . . . . . . . . . . . . .240.00 +3.00 278.60 173.60 Investec . . . . . . . . . . . . . . . . . . .475.30* +0.10 565.00 378.20 SABMiller . . . . . . . . . . . . . . . . .1961.50 –8.50 2090.00 1307.00 www.interactivedata.com

Individual banks buck dreary Retail earnings give

session as volumes stay thin hope to Wall Street
cerns about labour market weakness But retailers lost ground after Next, expectations. The S&P Retail index

THELONDON ahead of a key government jobs

report later this week.
Britain's second-largest fashion chain,
said it expected a fall in first-half THENEW YORK gained 2.2 per cent.
Data from the Institute for Supply

REPORT
A report by ADP Employer Services
showed US private employers added
42,000 jobs in July, while the Euro
zone’s dominant service sector picked
underlying sales to deepen in the sec-
ond half.
Next slumped 7.7 per cent, while
Carpetright, Britain’s biggest floor
REPORT Management showed the services sec-
tor grew at a faster pace than expect-
ed in July. In a separate report,
payroll-processing company ADP said

L U
ONDON equities ended flat yes- up speed last month, allaying fears of coverings chain, was down 3.4 per S stocks rose in thin trade yes- private employers added more jobs in
terday as better-than-expected a double dip recession. cent as it reported a drop in underly- terday as retailers’ earnings July than forecast.
US services and private sector “We are trying again to move on ing sales and said it was planning for and a report showing a slight Friday’s government report on jobs
employment figures offset the upside. But don’t expect a too spending to stay subdued for the rest improvement in private is expected to show a drop of 65,000
weaker retail shares that fell on con- aggressive rally as you have only very of 2010. employment boosted optimism in July as Census jobs dried up.
cerns of a decline in consumer selective buying in different shares,” “The market is quite vulnerable ahead of Friday’s payrolls report. The Dow Jones industrial average
demand. said Achim Matzke, strategist at and volatile, with low volumes, as Priceline.com soared 22 per cent to gained 44.05 points, or 0.41 per cent,
The choppy session witnessed Commerzbank in Frankfurt. there is a lack of ‘by and hold’ $281.30 on its stronger-than-expected to 10,680.43. The Standard & Poor’s
weaker banks, with the STOXX “The technical picture looks posi- investors. Insurers remain on the quarterly results and outlook, sug- 500 Index added 6.78 points, or 0.61
Europe 600 banking index down 0.4 tive.” sidelines, while institutional and gesting consumers are opening their per cent, to 1,127.24. The Nasdaq
per cent. Standard Chartered fell 5.2 The Euro STOXX 50, the Euro retail investors are still jittery,” said wallets to spend on travel. Composite Index advanced 20.05
per cent despite forecast-beating earn- zone’s blue-chip index, rose 0.2 per Frederic Buzare, global head of equity Traders also noted many stocks points, or 0.88 per cent, to 2,303.57.
ings, as analysts said the beat was cent to 2,825.08 points to stay above management at Dexia Asset have low valuations, with the S&P Priceline was the top performer in
mainly due to lower bad debts and its 200-day moving average and the Management. 500 trading at a forward price-to- both the S&P 500 and the Nasdaq 100.
further upside was limited due to its 61.8 perc ent Fibonacci retracement “So it’s a market of index trackers earnings ratio of 12.6 versus 14.6 at With 80 per cent of the S&P 500
premium rating. of the index’s fall from an April high and hedge funds who play short-term the start of the year. companies having reported quarterly
The wider market rallied from lows to a May low, generally a bullish sig- moves, hence the wild swings.” “People still have a lot of concerns results, estimated and reported earn-
on the back of US services data to nal. The index pierced the two key French utility EDF featured among about economic growth right now ings growth stands at 37.3 per cent
close little changed. The FTSE 100 resistance levels on Monday. the top gainers, up 5.5 per cent, news and people are thinking the econo- for the previous quarter, up from an
closed down 0.2 per cent, or 10.32 The banking sector as a whole was on higher proposed tariffs. my is slowing, and these numbers estimate of 27.4 per cent a month
points, at 5,386.16. down but some individual banks haven’t been strong enough to disa- ago, according to Thomson Reuters
“Markets are struggling to under- advanced. Part-nationalised Lloyds, ANALYSIS l FTSE 5,386.16 buse anyone of that opinion,” said Proprietary Research.
stand what’s happening and whether Britain’s biggest retail bank, was up 5,500 4 Aug Stephen Massocca, managing direc- Barnes & Noble surged 19.2 per
to put emphasis on the good part of 3.6 percent as it beat forecasts to 5,400 tor at Wedbush Morgan in San cent to $15.31 after the number one
the news or on the bad part, and this swing to its first profit in two years 5,300 Francisco. US bookstore chain put itself up for
explains the nervousness,” said and said it expected to deliver a 5,200
“On the other hand, stocks contin- sale as business suffers in the high-
Philippe Gijsels, head of research at strong medium-term performance. ue to be very inexpensive and if you stakes battle for a leading role in the
5,100
BNP Paribas Fortis Global Markets. Société Générale was up 0.7 per believe 2011 earnings estimates, they digital books market.
The market got some support from cent as it beat forecasts with an 5,000 are very inexpensive.” Shares of industry giant
macro-economic numbers, with fig- almost fourfold leap in second-quar- 4,900 Coach climbed 5.9 per cent to Amazon.com, which sells the Kindle
ures showing US private sector ter net profit, but the French bank 4,800 $39.30 (£24.73) after the leather electronic reader and e-books, rose 4.2
employment rose slightly more than warned that the economic recovery 4,700 goods maker posted fourth-quarter per cent to $127.58. Goldman Sachs
expected in July, easing some con- was still fragile. 10 May 28 May 18 Jun 8 Jun 18 Jul results that topped Wall Street’s added 2.1 per cent to $156.41.
 City Focus KNIGHT AND 19
DAY REVIEWED
| Careers SEE TOMORROW’S
NEWSPAPER

When relocation becomes a nightmare

ASK THE EXPERTS
ON the first day of my new job my new
employer has told me that they want me
to move to Birmingham. This was never
mentioned in the interviews and I
assumed I would be staying in London. I
don’t want to move. I am single, and I feel
that if I had a family they would not
expect me to. They are taking advantage
of me, but I have just got the job, and I
am worried what will happen if I cause a
fuss. Can they sack me? I just don’t know.
What should I do?

Ceri Roderick psychologist, Pearn Kandola

AS well as an official contract covering
employment there is also a psychological
contract which contains mutual expecta-
tions, defines what “fair” looks like and
sets the ground rules for how the two par-
ties will behave towards each other. This
contract is in danger of being breached have a claim for misrepresentation. These It’s easy to feel like a know whether a particular job is right for
here. So, how reasonable are they being? claims are usually difficult and costly to fish out of water in a you. Is it a suitable vehicle for you to pur-
“Not very” is the obvious answer –most bring and your contract may say that you new city. sue your purpose?
people would need time to consider a sig- cannot rely on representations which are Intuition means “immediate insight
nificant life change, so step one is to ask not recorded in the contract – that would without reasoning”. It works much better
for that time. stop a successful claim. if you calm the chaotic thoughts known
Step two is to check out what the move If you feel you have no choice you could as the monkey mind. You can do this by
means, practically and in terms of your try negotiating the terms of the move, eg a John Purkiss headhunter, Purkiss & Co learning to meditate.
psychology. Draw up your own balance contribution to travel and accommoda- Activities such as running, dancing
sheet of pros and cons. Depending on our tion costs, splitting the working week (with a partner) or wind surfing also help,
personalities we can be prone to be between Birmingham and London, a fixed ONLY you can know what is right for because they make you concentrate on
overly optimistic or overly gloomy about period after which you can return to you. This knowledge comes from two one thing. Once the random thoughts die
unexpected change, so try to be objective London. things: a strong sense of purpose and down, you have a feeling about what you
– use language like assets and risks, or You mentioned that you are single – your intuition – which some people pre- should do.
short vs long term payoff but make sure the law protects workers from discrimina- fer to describe as their heart or their gut. If you decide to leave the company, do
you populate both sides of your balance tion on grounds of marriage but not sin- A key question is this: “If you had so quickly and professionally. Most sensi-
sheet to help you to reach a decision. gle status. In short you have little unlimited time and money, what would ble employers and recruiters will under-
Finally, negotiate: there is usually a protection. You need to negotiate a deal you do?” This points you in the direction stand your reasons for doing so. If you
deal to be cut so approach the conversa- to move and/or start looking around for of your purpose – the reason you are on know where you are going in life, some-
tion with the employer in problem solv- another job. the planet. Then you will instinctively thing more suitable will come up.
ing terms and suggest options and
solutions rather than just barriers.
Psychological contracts are continuously
modified and re-written so this could be
the time to make sure that you and your
employer are looking at the small print
and setting the ground rules for the
future.

Joanna Chatterton lawyer, Fox Williams

CHECK your employment contract for the
Too busy to find a new role?
Leave it to us.
description of your “place of work” and
for any clause which allows your
employer to change this. If there is a term
in your contract that gives your employer
the right to require you to change loca-
tion, then your refusal would be a breach
and your employer might not need to pay
you notice monies as it could claim you
are guilty of gross misconduct.
If there is no such term, your employer
should get your agreement to a move. If it
tried to force you to go your employer will
be in breach. You could leave and claim
you’ve been constructively dismissed, but
that just entitles you to notice pay which
)RU([HFXWLYHV(DUQLQJ…N…P
could be as little as one weeks’ net pay if 7RDUUDQJHDQH[SORUDWRU\PHHWLQJFDOO
you are in a probationary period. Without
a year’s service you cannot claim unfair (ORQGRQ#LQWHUH[HFFRXN:ZZZLQWHUH[HFFRXN
dismissal.
If your employer knew you would need
to move but didn’t explain this, you may
 Lifestyle
20
Head gear for the holidays
Juliet Samuel finds the best new headphones
that’ll make your iPod sound spectacular
DENON AH-C560R
£99.99
www.denon.co.uk
IT would take some particularly good in-ear
buds to make me pick them instead of over-
head headphones – normally I find them
uncomfortable, I fret about what damage
they’re doing to my hearing, and they fall
out. But Denon’s new AH-C560R phones
(catchy name, guys) have come as close as
any to convincing me. As you’d expect from
a company so experienced in producing
top-end audio gear, the sound quality is
immaculate – broad, rounded and crisp,
the opposite of the tinniness you get with
so many cheap in-ear headphones. They’re
ergonomically designed to fit snugly into
the ear hole (the bud points off at an angle
from the main housing) and, as well as dif-
ferent sizes of rubber tips, there’s a soft
foam option that I found the most comfort-
able solution. Crucially, the cable includes
BEST OF THE REST:
AUDIO TECHNICA ATH ANC1
£80
These travel headphones from
Audio Technica are about as
compact as you’ll get for an
over-the-head headphone
as they fold into a small
ball. They don’t enclose
the ear but fit neatly onto
it and come with an
active noise-cancelling
feature. It’s powered by a
battery housed in a control
module that clips to your
clothes. www.hifihead-
phones.co.uk
CASIO EX-H15
£223
From its shiny pink cover to its sparkle graphic
on “make-up mode”, the Casio EX-H15 screams
tacky tween and, in that respect, it doesn’t dis-
appoint. Its flagship feature is “make-up mode”,
which promises to airbrush subjects for “beauti-
ful portraits”. Amazingly, it does seem to do
something, though it isn’t quite clear what.
Subjects photographed in this mode did seem
to have their skin made vaguely smoother with
less distinct blemishes, but the whole effect
was mostly just a little odd, like something that
came out of the Cosmo Photoshop lab halfway
through. Its other interesting feature is a
OUT OF OFFICE
TIMOTHY BARBER
CITYA.M. 5 AUGUST 2010
| Gadgets
NICK
SENNHEISER PXC 450
BOOTH
TECH TALK
£188
www.kikatek.com
SENNHEISER’S PXC 450 is
the latest in their PXC
travel range and features
Phones, apps
and gadgets
Sennheiser’s longstand-
ing “Noisegard” technology,
which was originally devel-
oped for use by pilots in
for the hi-tech
loud cockpits. As such, the
headphones offer listeners
excellent noise cancelling to
the point where you feel a lit-
youth of today
tle like you are underwater.
But Sennheiser has also includ-
ed a nifty trick: a “TalkThrough”
button that pauses your iPod and
brings voices into hearing with crystal
clarity and without the background noise
I
(perfect for eavesdropping at a distance). Most ’VE seen the future of British youth – it’s
importantly, however, the headphones also deliver fantastic sound half man, half desk. Why? They can’t
quality, bringing out the gritty textures of voices and a rounded relate to anything unless it’s writ large
a tiny remote control panel for iPad and bass that nonetheless avoids obscuring the intricacies of the mid on a glowing screen at chair level.
iPhone users to shuffle through tracks and and upper tones. The only downside to this model is that the ear- But now the school PCs and whiteboards
change the volume, plus a microphone for pieces seem to be angled outwards a little, which means they don’t have been powered off, could we entice our
recording voice memos. fit firmly around one’s ears. Luckily, the earpads’ soft padding and next generation humans into the garden of
Timothy Barber spacious size nonetheless make them easy to fall asleep in. real-life high definition?
Sorry, no. Not without gadgets.
Here’s something that might work: for
£44.95 Garmin (www.garminphone.co.uk) sup-
BOSE ON EAR BREO DE JANEIRO plies a mobile phone with SatNav. Presumably
they named the M10 phone (pictured below)
£90 £65 after a motorway, so kids will feel grown up.
While these headphones This stylish pair of head- Wait until they’ve taken it on holiday and
lack active noise-cancelling, phones from Breo fea- racked up massive mobile roaming charges.
the strong grip of the tures closed cups Welcome to our world, children.
Better still, give the kids their own
leatherette ear cups does padded with exception- SatNav device that can talk to them as they
help to block out a significant ally soft foam under cycle along the pavement. “Turn left onto
proportion of background that swanky orange the neighbour’s flowerbed.” Just like
noise. The main benefit of exterior. They deliver a mummy or daddy’s, but for two wheelers.
Bose’s On Ear model is its thundering base as well Binatone does a special SatNav that clips
onto your bike. Give your kid £60 to take to
portability: at only 150 as clear mid and upper Argos, and they’ll get a Binatone F350 (and
grammes the headphones tones. If you don’t fancy enjoy an exciting one-penny cashback deal).
are light and compact, offer- the orange/black style, Garmin does an amazing bike device for
ing listeners good sound quali- they’re also available in £200, but it won’t last long unless your
kids stay within a gated community. Sadly,
ty as well as a comfortable fit. tropical yellow/black or a the Edge doesn’t speak like Ali G, but your
www.bose.com more staid black/grey. yoof will learn a valuable life lesson when
they are inevitably mugged.
“dynamic photo” mode, which attempts to cut OK, I give up. Let’s give the kids toys that
keep them indoors. In this throwaway age,
out moving objects from their background and when toys die so quickly, it’s better to keep
produce a cartoon strip of action shots. The things cheap. For as little as sixty pence
problem is, it doesn’t quite work. It zeroes in on you can give the kid in your life an app for
the object roughly, but can’t seem to avoid cut- their mobile. You don’t have to leave your
desk to buy presents at Getjar.com, iTunes
ting off fingers and mug handles. Still, the func- or Ovi Store.
tion is a vaguely interesting echo of a Balloonimals is a case in point. The game
technology that might one day be very impres- is to blow into the microphone of your
sive. Otherwise, it nonetheless serves extremely iPhone and bring Balloonimals to life. Shake
well as a compact digital camera with a 10x the phone and the fish/duck/unicorn will
take three dimensional shape. Now involve
optical zoom and resolution up to 14.1 megapix- your kids in an educational naming game
els. In all, it would either make a pricey present where you name all the animals. In the final
for a rather silly teenager or a practical gift for stage, drain all the saliva out of your micro-
someone in need of a high-quality camera. phone before it destroys the circuitry, as
this sort of damage isn’t
www.lambda-tek.com covered by a warranty.
That’ll teach you to buy
an iPhone!
Education is about
working with your kid’s
abilities, rather than
telling them stuff. So
why not put their gadg-
After the Dance, left, LAST CHANCE: AFTER THE DANCE BOOK NOW: BLACK WATCH RETURNS et obsession to good
is at the National Anyone who’s been riveted by Benedict If you didn’t catch Black Watch’s initial run at use?
Theatre until next Cumberbatch’s performance in the BBC’s the Barbican in 2008, do anything you can to Ifindifone.com offers
Wednesday. updated version of Sherlock Holmes should get tickets for its return this winter. Gregory to help budding entre-
check out his tremendous starring role in Burke’s devastating depiction of the effects preneurs to create their
After the Dance at the National Theatre, of the Iraq and Afghan conflicts on the own apps, which they
which ends next week. In the revival of squaddies sent out there employs straight can sell on the open
Terence Rattigan’s 1939 play, Cumberbatch theatre, physical peformance and song to market. That’s better:
plays a rich, dissolute, part-time historian searing effect. One of the great theatrical get the kids working.
caught up in the pre-war social whirl. Until 11 achievments of the past decade. 27 Nov-22 Nick Booth is the
Aug, National Theatre, Lyttleton. Tickets from Jan, Barbican Theatre, Silk Street. Tickets editor of
£10 from www.nationaltheatre.org.uk £35-40 from www.barbican.org.uk www.mobile2b.co.uk
CITYA.M. 5 AUGUST 2010 Lifestyle | TV& Games 21

BBC1 BBC2 ITV1 CHANNEL4 FIVE TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders; BBC News
8pm Celebrity MasterChef
9pm CHOICE Mistresses
10pm BBC News
10.25pm Regional News
10.35pm FILM Deep Impact:
Sci-fi drama, starring Robert
Duvall and Morgan Freeman
1998; Holiday Weatherview
12.35am Sign Zone: Panorama
1.05am Sign Zone: Countryfile
2am Sign Zone: Celebrity
MasterChef 3am Sign Zone: DIY
SOS 3.30am Sign Zone: Put Your
Money Where Your Mouth Is
4.30am-6am BBC News
6pm Eggheads: Quiz show,
hosted by Dermot Murnaghan.
6.30pm Antiques Road Trip
7pm Wainwright Walks:
Coast to Coast
7.30pm Mastermind:
Champion of Champions
8pm Natural World:
The life and legacy of
Echo the elephant.
9pm Victorian Pharmacy:
The tough examinations
faced by chemists in 1868.
10pm CHOICE Getting On
10.30pm Newsnight; Weather
11.20pm Nurse Jackie
11.50pm Nurse Jackie
12.20am BBC News
4.30am-6am Close
6pm London Tonight 6pm The Simpsons: Marge 6pm The Boss Is
6.30pm ITV News invites Nelson to stay. Coming to Dinner
7pm Emmerdale 6.30pm Hollyoaks 6.25pm Don’t Stop Believers
7.30pm In the Line 7pm Channel 4 News 6.30pm Live from Studio Five
of Fire; Tonight 7.55pm 4thought.tv 7pm Five News at 7
8pm Emmerdale 8pm Location, Location, 7.30pm Fifth Gear;
8.30pm Coronation Street Location: Revisiting two Five News Update
9pm CHOICE Police, couples in Edinburgh. 8pm The Man Who Moves
Camera, Action! 9pm Undercover Boss Buildings; Five News at 9
10pm ITV News at Ten 10pm Big Brother 9pm The Hotel Inspector
10.30pm London News 11.15pm FILM Zoolander: 10pm Crimes That MISTRESSES
10.35pm FILM Lethal Weapon Catwalk comedy, starring Shook the World BBC1, 9PM
11pm Don’t Stop Believers 11.05pm New series. Joanna Lumley joins the
3: Action thriller sequel, Ben Stiller. 2001. Who Killed Marilyn Monroe?
starring Mel Gibson. 1992. 12.55am Dirty Sexy Money cast of the drama about four women
12.10am SuperCasino 4.05am The
12.45am The Zone; 1.45am The Ascent of Money Boss Is Coming to Dinner 4.30am
whose lives have all been touched by
ITV News Headlines 2.40am Big Brother: Live 4am- Wildlife SOS 4.55am Rough Guide infidelity. Sarah Parish stars.
2.50am FILM One Million Years BC: 6am FILM Penny Serenade: to Weekend Breaks 5.10am The
1966. 4.30am-5.30am ITV Romantic drama, starring Cary New Tomorrow 5.35am-6am
Nightscreen Grant and Irene Dunne. 1941. Michaela’s Wild Challenge

SKY SPORTS 1 BRITISH EUROSPORT 4.40am CSI: Crime Scene 11.25pm Important Things with 3.50am Investigation X
SATELLITE & CABLE

7pm Live World Golf
Championship: The Bridgestone
Invitational. 11pm Golfing
World 12am Premier League
World 12.30am Football’s
Greatest 1.30am World Golf
Championship 5.30am-6am
Football’s Greatest
SKY SPORTS 2
7pm Football’s Greatest: The
career of Diego Maradona.
7.30pm Race World 8.30pm
ATP Tour Uncovered 9pm Live
ATP Tennis 1am Race World
2am FEI Equestrian World
2.30am-3am IAAF Athletix
Weekly
SKY SPORTS 3
3.30pm Live ECB 40 League
Cricket 9.30pm Football’s
Greatest 10.30pm Time of Our
Lives 11.30pm NRL Fulltime
12am-2am Championship
Rugby League
7pm Strongest Man 8pm
World Superbikes 10pm
MotoGP 11pm-12.30am
Cycling
ESPN
6.45pm Pre-Season Football
8.30pm Eredivisie 10pm MMA
Live 10.45pm Ultimate
Fighting Championship
11.45pm UFC All Access
12.15am Talk of the Terrace
12.30am Press Pass 2010 1am
Live Major League Soccer
3am-6am Major League
Baseball
LIVING
7pm Bulging Brides 8pm My
Fake Baby 9pm Criminal Minds
10pm Private Practice:
Addison’s father visits. 11pm
Criminal Minds 12am CSI:
Crime Scene Investigation 1am
Passport Patrol 2am So You
Think You Can Dance 3am
Trolley Dollies 3.50am Maury
Investigation 5.30am-6am
Home Shopping
BBC THREE
7pm Total Wipeout 8pm
Young, Dumb and Living Off
Mum 9pm Small Teen, Big
World 10pm EastEnders
10.30pm The Real Hustle:
Celebrity Scammers 11pm
Family Guy 11.50pm Baby
Beauty Queens 12.20am
Danielle Lineker – My New
Stepfamily 1.15am Small Teen,
Big World 2.15am The Real
Hustle: Celebrity Scammers
2.45am Total Wipeout
3.45am Young, Dumb and
Living Off Mum 4.45am-
5.15am Baby Beauty Queens
E4
7pm Hollyoaks 9pm The Big
Bang Theory 9.30pm How I
Met Your Mother 10pm
Accidentally on Purpose
10.35pm Alan Carr: Chatty Man
Demetri Martin 11.55pm The 4.40am Days That Shook the
Big Bang Theory 12.25am-6am World 5.30am-6am How Does
Big Brother: Live That Work?
HISTORY DISCOVERY HOME &
GETTING ON
7pm Warriors: Attila the Hun HEALTH
8pm Pawn Stars 9pm Inside 7pm Labour and Delivery 8pm BBC2, 10PM
the Body of Henry VIII 10pm
10 Years Younger 9pm I Didn’t New series. Comedy-drama about life
True Horror: Werewolf 11pm Know I Was Pregnant 10pm on a geriatric ward. Starring Jo Brand,
Hell’s Battlefield 11pm Empire Help! I’m a Hoarder 11pm Dr G:
of the Mongols 12am Pawn Medical Examiner 12am I Didn’t
Joanna Scanlan and Vicki Pepperdine.
Shown previously on BBC4.
Stars 1am Inside the Body of Know I Was Pregnant 1am
Henry VIII 2am Warriors:
Help! I’m a Hoarder 2am Dr G:
Attila the Hun 3am Guns,
Medical Examiner 3am 10 Years
Germs and Steel 4am-5am Younger 4am Test Tube Babies
The True Story 5am-6am Multiple Mums
DISCOVERY SKY1
8pm How Do They Do It? 8pm The Real A&E 8.30pm
8.30pm How It’s Made 9pm Real Filth Fighters 9pm Lie to
Venom Hunter with Donald Me 10pm NCIS: Los Angeles
Schultz 10pm River Monsters 12am Road Wars 1am UK POLICE, CAMERA ACTION!
11pm Oil, Sweat and Rigs Border Force 1.50am Road ITV1, 9PM
12am Deadliest Catch 1am Wars 2.40am The 4400 Gethin Jones investigates speeding on
Bear Grylls: Born Survivor 4.20am Project Runway Britain’s roads, meeting a mother and
2am More Industrial 5.10am-6am Are You Smarter daughter whose lives were devastated
Revelations 3am Weaponology Than a 10 Year Old? by an accident.

COFFEE BREAKCopyright Puzzle Press Ltd, www.puzzlepress.co.uk


QUICK CROSSWORD
   

SUDOKU KAKURO
16 17 9 15 6 32 12 
10 8 17
23 5  
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 13 3
9 21 15
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 4 14 14
 
above or to the left of it. 15 9
You can only use the digits 1-9 24 34 
   and you must not use the
22
10 10  
same digit twice in a block. 11 16 27 33 5
  The same digit may occur 35 7 
19
   more than once in a row or
column, but it must be in a
7
15
8
9
11

7 30
    separate block.
12 16 10 
45
    13 13 17
 

    ACROSS DOWN
1 Desert watering-hole (5) 1 Take up space (6)
  
  WORDWHEEL E R
4 Existed, lived (3)
6 Bring together (5)
2 Japanese rice dish (5)
3 State of being
Using only the letters in the Wordwheel, you have disregarded or
   7 Small fasteners used
ten minutes to find as many words as possible,
T A to hold loose articles
forgotten (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters A together (5)
9 Mild and pleasant
4 More affluent (9)
5 Remain, sit tight (4)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
I N (weather) (5)
8 Bad-tempered (9)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
C N 10 Covered and often
columned entrance
11 Container used
for drinking (3)
QUICK CROSSWORD 1 2 5 4 1 2 4 3
to a building (7)

3 ( $ . 6 6 + ( / /
7 4 9 8 7 1 6 9 SUDOKU          13 Assign a duty to (7)
12 Not subject to
change (6)
6 7 9 4 8 9         
/ 0 2 ( ; ( 15 Organ enclosed
$ 3 2 / 2 * , 6 , 1 * 9 1 8 8 5 8 1
         13 Extension to a
5 3 8 9 6 5 7 4 within the skull (5)
7 1 1 = 6 $
         main building (5)
( ' * ( ' ( 1 7 $ / 2 5 3 4 1
         16 Immature insect (5)
8 $ ,
. ( 7 7 / (
$ /
3 $ / (
7 4 1
9 1
3 6
9 7
2 6
8 9
1
2
WORDWHEEL         
17 Suspicious, untrusting (5)
14 Growth on the
surface of a mucous
, , ( ' 5 9         
& 2 0 3 $ 5 $ 7 , 9 ( 8 1 1 2 3 5 The nine-letter word 18 Catch sight of (3)
membrane (5)
4 6 2 1 1 2 7 4         
. , ' 7 6 1
was GODFATHER          15 Makes a wager (4)
6 , ' ( 6 $ / ( 5 7 7 9 6 8 4 6 8 9 19 Young dog (5)
 22 Sport CITYA.M. 5 AUGUST 2010

Results
CRICKET
THIRD TEST MATCH (Colombo); Sri Lanka 425 (T T
Samaraweera 137no, K C Sangakkara 75, D P M D
Jayawardene 56, P P Ojha 4-115) v India 180-2 (35.0 overs).
100 marathons in 100 days is
not boring, it’s soul-destroying
LV COUNTY CHAMPIONSHIP - Division One: (Southend);
Essex 149-9 (43.5 overs) v Warwickshire. (Basingstoke);
Hampshire 421-5 (109.0 overs) (M A Carberry 162, M J
Lumb 158). v Durham. (Canterbury); Somerset 380 (J C
Hildreth 151, A V Suppiah 125) v Kent 175-3 (51.5 overs).
(Headingley Carnegie); Yorkshire 178 v Nottinghamshire
497-6 (112.0 overs) (S R Patel 96, M J Wood 59). Division
Two (Cheltenham); Gloucestershire 324-4 (87.0 overs) (W T
S Porterfield 175). v Worcestershire. (Grace Road);
Derbyshire 182 (D J Redfern 85, M N Malik 4-32, M J
Hoggard 4-77) v Leicestershire 260-6 (87.0 overs) (M A G
Endurance athlete Mike
Boyce 60)..
CLYDESDALE BANK 40 - GROUP A (Brit Insurance Oval); Buss explains to Jon
Surrey 386-3 (R J Hamilton-Brown 115, S M Davies 88, M R
Ramprakash 85no, M N W Spriegel 56no) v Glamorgan 187-
5 (M J Cosgrove 88, J W M Dalrymple 54no). Surrey (2pts)
Couch the perils of
beat Glamorgan by 39 runs (DL Method.
FOOTBALL
completing his toughest
UEFA CHAMPIONS LEAGUE—Third Qualifying Round
Second Leg: AA Gent 1 Dyn Kiev 3, Agg: 1-6. Basle 3
challenge to date
Debrecen 1, Agg: 5-1. Celtic 2 Braga 1, Agg: 2-4. Dinamo
Zagreb 1 FC Sheriff 1, AET: Score after 90 mins 1-1. Agg: 2-

F
2; FC Sheriff Win 6-5 on Penalties. FC Copnhagn 3 BATE 2, OR most of us, running a
Agg: 3-2. Fenerbahce 0 Young Boys 1, Agg: 2-3. HJK Helsinki marathon is fulfilling a lifelong
1 Partizan Belgrade 2, Agg: 1-5. Lech Poznan 0 S Prague 1, ambition, but for Mike Buss it’s
Agg: 0-2. MSK Zilina 3 Litex Lovech 1, Agg: 4-2. P Salonika 3
Ajax 3 Agg: 4-4; Ajax win on away goals rule. Rosenborg 3
an everyday chore.
AIK 0, Agg: 4-0. SV Red Bull Salzburg 4 Omonia Nicosia 1, Buss, a former Army PTI and
Agg: 5-2. Zenit St Petersburg 1 Unirea Urziceni 0, Agg: 1-0. record-breaking endurance athlete, is
FRIENDLY MATCHES: B Dortmund 3 Man City 1, Everton 2 making a mockery of the gruelling
Everton 0, Fleetwood Tn 1 Huddrsfld 0, Hamburg 2 Chelsea 26.3-mile challenge by completing it
1, K-League All-Stars 2 Barcelona 5, League of Ireland XI 1 every day for 100 days – all in the
Man Utd 7, Newton Aycliffe 1 Darlington 2, Solihull Moors 3 name of charity.
Birmingham XI 2, Wigan 1 R Zaragoza 3, Salford City 0
Barrow 2.
Since 16 June, Swindon-based Buss
has ran the four-hour trek on a tread-
SNOOKER mill at various locations up and down
SHANGHAI MASTERS (Sheffield)— —3RD Q’FYING RND (Eng to country to raise around £50,000 for
unless stated): T Ford bt M Couch 5-0, F O’Brien (Irl) bt I Help for Heroes and double the exist-
Figueiredo (Bra) 5-1, T Thirapongpaiboon (Tha) bt N Bond 5-
1, J Burnett (Sco) bt J McBain (Sco) 5-1, A Burden bt M ing world record of 50 marathons in
Campbell (Sco) 5-3, A Hamilton bt T Drago (Mlt) 5-3, J Swail 50 days.
(NIrl) bt J Wattana (Tha) 5-1, R Lawler bt B Pinches 5-1, A Buss nailed his colours to the mast
Zhang (Chn) bt S Pettman 5-3, R Milkins bt P Lines 5-4, J after he was given a medical dis-
Jones (Wal) bt A Gunnell 5-1, M White (Wal) bt D Dale (Wal) charge from the Army in 2000 after
5-1, I McCulloch bt D Morris (Irl) 5-2, M Gould bt L
Highfield 5-3. he was almost killed by an IRA car
blast in Northern Ireland.
TODAY’S DIARY Since then, he has reinvented him-
(Football 7.45pm unless stated)
self as one of Britain’s top endurance
UEFA EUROPA LEAGUE athletes, but admits it was the inspi-
Third Qualifying Round Second Leg ration of an overweight comedian
Bangor City (2) v Maritimo (8) (7.30)................................................................ which prompted him to take on the
Cliftonville (0) v CSKA Sofia (3) .......................................................................... biggest challenge of his life.
Hibernian (0) v Maribor (3).................................................................................... “I was going to go for the 51
Juventus (2) v Shamrock Rovers (0)..................................................................
Liverpool (2) v Rabotnicki Kometal (0).............................................................. marathons, just to break the record,
Motherwell (1) v Aalesund (1) .............................................................................. but after Eddie Izzard did 47 in 53
CRICKET days, I felt I had to raise the bar fur-
ther,” Buss told City.A.M. on his fly-by
Third Test Match—day 3 of 5: Sri Lanka v India (Colombo).
LV County Championship - Division One—day 3 of 4: Kent v
visit through the City last week.
Somerset (Canterbury). Yorkshire v Nottinghamshire “I’m on day 49 and my calves are Ex-soldier Buss was almost killed by an IRA car bomb in Northern Ireland back in 2000. Picture: Micha Theiner/City.A.M
(Headingley Carnegie). Hampshire v Durham (Basingstoke). absolutely killing me, but there’s only
day 2 of 4: Essex v Warwickshire (Southend). Division 51 to go. I’ve got no sports therapists, n’t bother doing it.” minus 43 degrees, before then flying marathons in Death Valley, Nevada –
Two—day 3 of 4: Leicestershire v Derbyshire (Grace Road). managers or physiotherapists so it’s Living up to his motto “Beyond down to Morocco for the Marathon the hottest place on the planet –
day 2 of 4: Gloucestershire v Worcestershire (Cheltenham).
Clydesdale Bank 40 - Group B: Middlesex v
all down to me to condition myself Impossible’, Buss has now set his Des Sables – a six-day, 256km trek before then attempting to swim five
Northamptonshire (Lord’s). properly. sights on completing several other across the Sahara Dessert in heat of miles across the Arctic Ocean.
“To be honest, it’s not so much the barn-storming endurance challenges 40-degree Celsius. If he succeeds, he “I want to show there’s nothing I
GOLF
physical side, it’s actually more men- in an attempt to claim the unofficial would be the first person to do so can’t do,” he said adamantly.
WGC Bridgestone Invitational (Firestone CC, Akron, Ohio). tally demanding. Being on a treadmill title of the world’s fittest man. before warming down with the Mike Buss is being supported by Chrysler
for four-and-a-half hours a day every In March next year, he plans to ran London Marathon. UK, who are donating a Jeep Patriot as the
SPORTS EDITOR JON COUCH day for 47 is not just boring, it’s soul- the 120-mile 6633 Ultra A challenge in Buss is also looking to take Hero top prize in his charity raffle, which is run-
email sport@cityam.com destroying, but if it was easy, I would- the Arctic, amid temperatures of 100 to the extreme, in completing 100 ning throughout his Hero 100 challenge.

SPORT | IN BRIEF
Woods in battle to stay as No1 Sehwag leads India charge
Johnson anguish as Toulon
refuse to release Wilkinson
GOLF: Tiger Woods’ five-year tenure as CRICKET: Virender Sehwag struck 17
world No1 could come to an end this fours in a dazzling unbeaten 97 as India
weekend when he defends his WGC- closed day two of the third and final Test
Bridgestone Invitational in Ohio. with Sri Lanka in Colombo on 180-2 –
Phil Mickelson will depose him with a still 245 runs behind their hosts.
win or a top-four finish if Woods were to Thilan Samaraweera making an
finish outside the top 37, while England’s unbeaten 137 – his 12th Test century – as
Lee Westwood, the world No3, will also Sri Lanka were bowled out for 425. availability of flanker James Haskell and ready for the opening game.
▲

RUGBY UNION
reach No1 if he finishes in the top two Sehwag then shared an unbroken 88 when the Rugby Football Union A club statement said that
BY JON COUCH
and Woods is outside the top nine. with record appearance maker Sachin refused to release him to play for his Wilkinson “will respect his con-
Woods, however, has formidable Tendulkar (40) before bad light ended ENGLAND were dragged into another club during a week’s break in the Six tract and will be available for the
record at Firestone, winning on his last play. club versus country row last night Nations. Both Haskell and his Stade first game of the Top 14 against
four appearances there and seven times after Toulon refused to release Jonny team-mate Tom Palmer have been Bayonne on 13 August”.
in total – a PGA Tour record. Hampshire land Hughes Wilkinson for international duty. selected in this squad and will Wilkinson signed for Toulon in
CRICKET: Australia opener Phil Hughes Wilkinson, 31, has been in impres- team up as planned. May 2009 after 12 years with
Pair retire to take coaching roles has agreed a deal to join Hampshire for sive form for the Top 14 club so far The RFU has an agreement Newcastle Falcons, and signed a
RUGBY UNION: Wales wing Mark Jones the remainder of the season. this pre-season and is required to play in place with all Premiership contract extension back in
and Ireland flanker Simon Easterby have The 21-year-old left-hander has been in their opening league game against clubs over player release, but January which will keep him
both announced their retirements from drafted in to replace departing South Bayonne next Friday. have to negotiate separately with the Top 14 club until the end of
the game to take out coaching positions African Neil McKenzie, and is expected to But that clashes with Martin with French clubs. the coming season.
with Magners Leaguers Scarlets. make his debut against Lancashire on 31 Johnson’s week-long training camp Fly-half Wilkinson will miss Johnson, meanwhile, is gathering
Jones, 30, won 47 caps for Wales in August. for the Elite Player Squad, which Toulon’s friendly, ironically his troops for a pre-season camp
an injury-ravaged career and takes up Hughes said: “I’ve heard so much meets up on Sunday. against Stade at the Stade ahead of a busy Autumn which sees
the role of skills coach, while 35-year-old about the culture, team spirit and organi- Rugby chiefs became embroiled in Mayol later today with a England play four Tests at
Easterby has accepted a two-year con- sation at Hampshire that it feels like the a row with Toulon’s Top 14 rivals shoulder injury, but is Twickenham against New Zealand,
tract as defence coach. perfect fit for me.” Stade Francais back in March over the expected to be fit Australia, Samoa and South Africa.
CITYA.M. 5 AUGUST 2010
It’s the most
open race for
many a year
City.A.M columnist Trevor Steven takes a look
at the hopefuls in this season’s Championship
M
ANAGERS will have one just
word embedded in their
minds when they open
their Championship cam-
paigns this weekend: Blackpool.
Ian Holloway’s achievement in tak-
ing the Seasiders to the promised
land on a shoestring budget and a
team of grafters will certainly not
have gone unnoticed among bosses of
the so-called smaller sides in the sec-
ond tier this season.
Indeed, but for Middlesbrough’s
Gordon Strachan, it’s been noticeable
just how many have shied away from
recruiting that ‘star man’ this sum-
mer and opted for that good, honest
pro who will put in a shift and help
grind you out of the division.
With no outstanding team such as
Newcastle in the league this year, the
three teams that came down from the
Premier League are the next most
scrutinised – and none of them look
particularly menacing.
Portsmouth are a club with too
LEAGUE ONE
BRENTFORD
MANAGER: Andy Scott
PLAYERS IN: Nicky Forster
(Brighton), Toumani Diagouraga (Peterborough),
Craig Woodman (Wycombe), Richard Lee
(Watford), David McCracken (MK Dons), Simon
Royce (Gillingham), Kirk Hudson (Aldershot), Mark
Spillane (Norwich)
PLAYERS OUT: Nikki Bull, Danny Foster, Ben
Strevens, Alan Bennett (all Wycombe), Ryan
Dickson (Southampton), Cleveland Taylor (St
Johnstone)
PLAYER TO WATCH: Myles Weston
LAST SEASON: 9th
PREDICTION: Play-offs not out of the question
ODDS: 40-1
Brum boss McLeish lines Bruce eyes up loan bid for
up swoop for Italian duo frustrated keeper Hart
PREMIER LEAGUE
▲
BIRMINGHAM City boss Alex McLeish
is lining up an audacious swoop to
land experienced Italian duo Mauro
Camoranesi and Fabio Grosso.
Camoranesi, 33, has been linked
with a move away from Italy after
eight years at Juventus and the mid-
fielder’s agent has confirmed the
Blues have made an approach.
“There was an official contact with
Birmingham,” said agent Sergio
Fortunato. “They made a proposal and
I have discussed it with Juventus.
Birmingham are a respectable team
and the Premier League is a good
league.”
The Argentina-born midfielder has
also been linked with newly promot-
much damage to repair, while my old
club Burnley and Hull City look in
danger of settling back into
Championship mediocrity.
Similarly, Cardiff, denied by
Blackpool in last year’s play-off final,
have financial problems of their own
also and are in danger of having to
offload some of their top players.
Strachan’s Middlesbrough are
many people’s favourites and it’s easy
to see why. Gordon has spent big on
players he knows from his days in
Scotland – the “men” as he calls them
enlisted with the job of getting the
club out of what is a very demanding
league. I’ve also got a sneaky suspi-
cion for Leeds.
Of the London clubs, QPR have the
best chance, although question marks
remain as to just how ambitious they
are down there at Loftus Road.
Not being able to prise Darren
Ambrose from rivals Crystal Palace
raised a few eyebrows. He’d worked
with Neil Warnock at Palace, scores a
CHARLTON
MANAGER: Phil Parkinson
PLAYERS IN: Johnnie Jackson
(Notts C), Gary Doherty (Norwich), Alan
McCormack, Simon Francis (Southend), Kyel Reid
(Sheff U), Akpo Sodje (Sheff W), Pawel Abbott
(Oldham)
PLAYERS OUT: Jonjo Shelvey (Liverpool), Nick
Bailey (M’boro), Deon Burton (Gabala), Matthew
Spring (Leyton O), Darren Randolph (Motherwell),
Stuart Fleetwood (Hereford), Frazer Richardson
(S’oton), Lloyd Sam (Leeds), Izale McLeod (released)
PLAYER TO WATCH: Kyel Reid
LAST SEASON: 4th
PREDICTION: Play-offs despite key departures
ODDS: 14-1
ed La Liga side, Hercules, but
Fortunato says his client would prefer
to hold out for a higher profile move.
“With all due respect to the Spanish
club, Mauro wants something more
than a newly-promoted team.”
In a double swoop on Juve, McLeish
is also targeting out-of-favour left-
back Grosso on a season-long loan,
but faces stiff competition from
Bologna.
Grosso, 32, only joined Juventus last
year after short spells at Inter Milan
and Lyon but has fallen down the
pecking order at the Stadio Olimpico.
The experienced pair have won
over 100 Italy caps between them and
Grosso converted the deciding penal-
ty as Italy beat France in the 2006
World Cup final.
hatful of goals from midfield and was
just the type of player to lead their
charge in what has to be their best
chance of promotion under the
Lakshmi Mittal era.
For Palace, it has to be a season of
stability under George Burley follow-
DAGENHAM
& REDBRIDGE
MANAGER: John Still
PLAYERS IN: Damian Scannell (Southend), Luke
Wilkinson (Portsmouth), Stuart Lewis (Gillingham),
Gavin Tomlin (Yeovil), Gareth Gwillim (Histon), Alex
Osborn (Grays), Danny Green (Billericay), Duran
Reynolds (Southend)
PLAYERS OUT: Danny Spiller (Gillingham), Anwar
Uddin (Barnet), Wes Thomas (Cheltenham), Alex
Bentley (released), Hakeem Araba (Billericay),
Mark Mwokeji (AFC Wimbledon)
PLAYER TO WATCH: Paul Benson
LAST SEASON: 7th in League Two, play-off winners
PREDICTION: A long, hard season awaits
ODDS: 150-1
PREMIER LEAGUE
SUNDERLAND are leading the race to
sign goalkeeper Joe Hart on loan from
Manchester City.
Black Cats boss Steve Bruce is on
the lookout for a temporary replace-
ment for the injured Craig Gordon
and has confirmed he has made an
approach for the highly-rated
England keeper.
“We’ve asked the question of City
and we now just have to wait and see
what they say,” said Bruce. “But the
timetable is not up to us on when we
get an answer, it’s up to them.
“With these new 25-man squad
rules, clubs don’t have to name their
confirmed squads until the end of
August, so if they wanted to, City
Sport | Football
Ambrose opted to
stay at Crystal
Palace rather
than join QPR.
Picture:
ACTION IMAGES
ing their recent financial troubles,
and with the small squad he has at
his disposal, while Millwall, similarly,
will just be happy to be in this posi-
tion again next season and consoli-
date themselves as a Championship
side.
LEYTON ORIENT
MANAGER: Russell Slade
PLAYERS IN: Matthew Spring
(Charlton), Dean Cox (Brighton), Stephen Dawson
(Bury), Lee Butcher (Tottenham), Elliot Omozusi
(Fulham), Aaron Brown (Aldershot), Terrell Forbes
(Yeovil), George Porter (Cray Wanderers), Alex
Revell (Southend)
PLAYERS OUT: Tamika Mkandawire (Millwall),
Jason Demetriou (AEK Larnaca), Stephen Purches
(Bournemouth), Luke Ashworth (Rotherham),
Glenn Morris (Southend)
PLAYER TO WATCH: Matthew Spring
LAST SEASON: 17th
PREDICTION: Top ten at best
ODDS: 80-1
could delay any decisions on their
squad until then.”
Hart, who kept 12 clean sheets in
41 appearances during an impressive
loan spell at Birmingham City last
season, opened the door for another
temporary move away from Eastlands
after emphasising his desire for first
team football.
“All I want is to play in the Man
City first team – but if I wasn’t I’d
have to reconsider,” said Hart earlier
this week.
“Shay [Given] has recovered from
his shoulder injury and we are both
fit and raring to go and we both want
that place.”
He added: “[Sitting on the bench]
doesn’t interest me. All I want to do is
play in the first team.”
23
CHAMPIONSHIP
CRYSTAL PALACE
MANAGER: George Burley
PLAYERS IN: David Wright
(Ipswich), Adam Barrett (unat-
tached), Andy Dorman (unattached), Lewis Price
(unattached), Owen Garvan (Ipswich)
PLAYERS OUT: Nick Carle (Sydney FC), Johannes
Ertl (Sheff Utd), Jack Randall (Aldershot), Shaun
Derry (QPR), Clint Hill (QPR), Danny Butterfield
(Southampton)
PLAYER TO WATCH: Darren Ambrose
LAST SEASON: 21st
PREDICTION: Another season of stability follow-
ing financial woes
ODDS: 50-1
MILLWALL
MANAGER: Kenny Jackett
PLAYERS IN: Shaun Batt
(Peterborough), Tamika
Mkandawire (Leyton Orient),
Steve Mildenhall (Southend), Liam
Trotter (Ipswich), James Henry (Reading), Kevin
Lisbie (Ipswich, loan).
PLAYERS OUT: Dave Martin (Derby), Jason Price
(Carlisle), Ali Fuseini (released), Adam Bolder
(Burton Albion), John Sullivan (Yeovil, loan)
PLAYER TO WATCH: Steve Morison
LAST SEASON: 3rd (League One play-off winners)
PREDICTION: Survival is the key and should do it,
but only just
ODDS: 50-1
QPR
MANAGER: Neil Warnock
PLAYERS IN: Jamie Mackie
(Plymouth), Leon Clarke (Sheff
Wed), Paddy Kenny (Sheff Utd),
Shaun Derry (Crystal Palace),
Clint Hill (Crystal Palace)
PLAYERS OUT: Angelo Balanta (Milton Keynes
Dons, loan), Matteo Alberti (AC Lumezzane, loan)
PLAYER TO WATCH: Akos Buzsaky
LAST SEASON: 13th
PREDICTION: Play-offs in their sights
ODDS: 10-1
LEAGUE TWO
BARNET
MANAGER: Mark Stimson
PLAYERS IN: Steve Kabba
(Brentford), Mark Byrne (Nottm
Forest), Sam Cox (Tottenham), Jordan Parkes
(Watford), Danny Kelly (Norwich), Anwar Uddin
(Dagenham & R), Rossi Jarvis (Luton), Charlie
Stimson (Gillingham), Ricky Holmes (Chelmsford),
Glen Southam (Histon), Glenn Poole (AFC Wimbledon)
PLAYERS OUT: John O’Flynn (Exeter), Albert
Adomah (Bristol City), Albert Jarrett (Lincoln),
Micah Hyde (Billericay), Kenny Gillet (Inverness CT)
PLAYER TO WATCH: Anwar Uddin
LAST SEASON: 21st
PREDICTION: Another season of struggle
ODDS: 100-1
Euro heartache
for Celtic despite
second-leg win
CHAMPIONS LEAGUE
CELTIC crashed out of the Champions
League at the first hurdle for a second
year running despite rallying to a 2-1
second-leg victory over Braga at
Parkhead.
With the comfort of an imposing 3-
0 lead from the first leg, the
Portuguese side clicked into cruise
control when Paulo Cesar glanced in
a neat first-half header.
Lifted by a vociferous crowd, Celtic
hit back with Gary Hooper pulling
one back before Efrain Juarez put the
Bhoys ahead on the night.
But a rousing comeback never
looked likely and Celtic’s European
hopes now lie in the play-off round of
the Europa League.
 Sport
24
Buyers pull
their weight
in Liverpool
tug-of-war
▲
FOOTBALL
BY JON COUCH
THE battle to take over the keys of
Liverpool FC was thrown into confu-
sion last night after a contrasting day
of counter claims and denials from
potential buyers.
Chinese businessman Kenny
Huang began the day in pole position
after admitting on Monday he had
been locked in talks with the club’s
major creditors, Royal Bank of
Scotland, about taking over their
£237m debt to them.
But Huang threw a spanner into
the works yesterday insisting he has
not made a formal bid for the club,
but has simply “registered interest” in
taking over from unpopular American
duo George Gillett and Tom Hicks.
At the same time, Syrian business-
man Yahya Kirdi, who represents a
group of investors from the Middle
East and Canada, was claiming he
had agreed a price to take over at
Anfield, saying he “is in the final
stage of negotiation” with the club.
And the picture wasn’t made any
clear by football financier Keith Harris,
of investment bank Seymour Pierce,
who admitted he too is representing a
“very serious” bid to buy the club.
“All I am prepared to say is that we
have looked at it very carefully on
behalf of would-be buyers, who we
England need to be wary of We’ll go bust if we lose
in court, say Portsmouth
Yousuf threat, warns Swann
▲
CRICKET
BY JON COUCH
GRAEME SWANN admits England are
wary of the threat of returning
Pakistan batsman Mohammad
Yousuf for the second Test.
Yousuf, 35, has come out of interna-
tional retirement to help bolster the
batting line-up of a Pakistan side
thrashed by 354 runs in the first Test
at Trent Bridge last week.
And spinner Swann admits Yousuf,
who averages more than 53 in his 88
Test matches to date, says England
would be foolish not to take notice.
know are very serious, we know are
cash rich, we know have the right
incentive and are prepared to take a
long-term view,” Harris said.
Liverpool vowed to make a decision
in the next ten days after they, and an
estimated six interested parties, gave
notice to the Premier League that a
change in ownership may be immi-
nent.
Huang was believed to be one of
those potential investors, but seemed
to take a step back yesterday when he
denied making a formal offer.
“Mr Huang would like to empha-
sise that he has registered interest in
investing in Liverpool FC but has
made no formal bid,” he said a state-
ment. “There has been much specula-
tion and commentary from a wide
array of people, many of whom have
little knowledge of the facts.”
Kirdi, however, appeared to steal a
march on his rivals by announcing
the agreement yesterday, although he
did make similar noises back in April
when he claimed a deal had been
done, but to no avail.
“The group is in advanced negotia-
tions with Thomas Hicks and George
Gillett, co-owners of Liverpool
Football Club, to purchase 100 per
cent of the club,” Kirdi insisted.
“A formal purchase agreement
between the parties is in the final
stage of negotiation.”
“We don’t focus too much on what
the opposition are doing but obvious-
ly when a player of Yousuf’s ability
comes into their team you have to sit
back and say ‘how are we going to
attack this player?’ ‘how are we going
to nullify that threat?’, said the
Nottinghamshire bowler.
“Obviously he is a threat, he’s a
world class player, but I think the way
we are bowling at the minute, espe-
cially Jimmy [James Anderson] and
Frank Finny [Steven Finn] up at Trent
Bridge, we won’t really mind who we
are bowling at.”
Anderson, in particular, was in full
“IT’S THE MOST OPEN
RACE IN YEARS”
TREVOR STEVEN’S
CHAMPIONSHIP
PREVIEW: P23
Anfield is at the centre of an investors’ tug-of-war.
Boss Hodgson confirms Poulsen interest
REDS boss Roy Hodgson has con-
firmed his interest in signing Juventus
midfielder Christian Poulsen.
Hodgson is a long-term admirer of
the 30-year-old Dane since he brought
him to FC Copenhagen in 2000.
“Christian is a player whose career I
swing at Trent Bridge, using the over-
cast conditions to full effect, taking
career-best match figures of 11-71.
And Swann was quick to heap
praise on his great mate, but insisted
England are keeping their feet firmly
on the ground. “I think whoever we
played at Trent Bridge would have
had to play very well to counteract
the swing bowling from James
Anderson. I thought he was excep-
tional,” he added.
“They were quite unfortunate to
find us in such good form with the
ball at the start of a series, but we’re
taking nothing for granted.”
Picture: ACTION IMAGES
actually kick- started many years ago
and I have followed him closely ever
since,” he said.
“If we can sign him from Juventus
at a price I consider reasonable, he will
be a very good player to bring into our
team.”
▲
FOOTBALL
PORTSMOUTH say they could go out
of business if they lose their court
case against the tax authorities today.
HM Revenue & Customs are chal-
lenging a Company Voluntary
Agreement (CVA) to allow the club to
come out of administration, claiming
it is owed £13m more than the £24m
stated by the club’s administrators.
And Portsmouth’s lawyer, Richard
Sheldon QC, says that if HMRC wins
its appeal, the club will “not be able
to give the Football League the assur-
ances it needs to fulfil its fixtures” in
this season’s Championship, which
gets underway on Saturday.
CITYA.M. 5 AUGUST 2010
Blackburn
hold talks
of takeover
▲
FOOTBALL
BY MARTIN CAPARROTTA
BLACKBURN ROVERS are the latest
Premier League to hold talks over a
possible takeover.
Chairman John Williams revealed
yesterday the club are in discussions
with a number of interested parties
about taking charge at Ewood Park.
Rovers currently owned by the
trustees of the late Jack Walker and
has debts of around £20m, but Indian
tycoon Ahasan Ali Syed has become
the latest candidate to launch a for-
mal approach to buy the club.
Syed, the head of Bahrain-Swiss
based investment firm Western Gulf
Advisory, is reported to have prom-
ised to clear Blackburn’s debt and
invest £300m in a long-term plan to
lift the club.
However the 36-year-old business-
man is just one of many parties inter-
ested in buying Blackburn, according
to Williams. “There have been inter-
ested parties for some time – discus-
sions are ongoing,” he said.
Rovers have been approached by a
number of consortiums over the last
three years, including one fronted by
ex- JJB Sports chief Chris Ronnie.
PREMIER LEAGUE OWNERSHIP
ENGLISH (9): Blackburn, Bolton,
Everton, Newcastle, Stoke, Tottenham,
Wigan, Wolves, West Brom
AMERICAN (4): Aston Villa, Liverpool,
Manchester United, Sunderland
HONG KONG (1): Birmingham
RUSSIAN (1): Chelsea
EGYPTIAN (1): Fulham
KUWAITI (1): Manchester City
MIXED (3): Arsenal, Blackpool, West Ham
“It will go out of the league,”
Sheldon said. “The club will probably
be liquidated.”
Sheldon earlier told the court that
Premier League clubs wanted “to boot
Pompey out there and then” last sea-
son on hearing the full extent of their
financial problems, adding it was
only the intervention of Premier
League chief Richard Scudamore that
saved the club.
“The clubs wanted Portsmouth to
go to the wall and divide all the TV
money among themselves,” he added.
High Court judge Mr Justice Mann,
overseeing the tax liability case, is
expected to deliver his final verdict
this afternoon.