Cityam 2011-05-27

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CHAMPIONS LEAGUE FINAL SPECIAL EXPERT VIEWS P36-39 Issue 1,391 Friday 27 May 2011

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POLITICS BY JULIAN HARRIS

26 May 2011

SENSITIVE data leaked by the Treasury could have fallen into “the wrong hands” and been used to profit off the markets, the head of the UK’s statistics office said yesterday in a scathing letter to the chancellor George Osborne. The Treasury has sent confidential inflation data to around 400 recipients prior to its official release twice this year already, provoking the criticism of Osborne from statistics chief Sir Michael Scholar. An investigation had to be held on a third occasion, after suspicious market movements were noticed before March’s surprisingly modest inflation figure. “There is a risk of market manipulation if key economic data falls into the wrong hands before publication,” Scholar wrote yesterday. “And there is an inevitable perception among some people outside government that, with such widespread privileged access, there is opportunity for political manipulation of the statistical outputs.” Osborne has performed a spectacular U-turn since coming to office last year, according to the letter. In opposition the Conservatives were against the dissemination of sensitive data within Whitehall prior to release, yet since coming into power have stuck with the system for the last year. “Why do 50 or more people need to

FTSE 100 ▲ 5,880.99 +10.85

a serious lapse in the I am writing to you about cial statistics… offi of g dlin han ry’s asu Tre e e in two months that ther tim nd seco the was …This of the CPI…. ase rele prethe with has been a problem eption among some … there is an inevitable perc , that with such widespread people outside government ortunity for political opp is e ther ess, acc privileged outputs. So trust in official al istic stat the manipulation of statistics diminishes…”

Chancellor Osborne was accused of breaking his promise to tighten controls over sensitive economic data have the CPI a day ahead of the Opposition, Parliament, the public, and media?” Scholar asked Osborne. There is “no good reason” Scholar said, yet accused successive governments of wanting “political advantage” so that they have “time to spin.” “The risks of the present pre-release arrangements are considerable,” Scholar said.

DOW ▲ 12,402.76 +8.10

The Treasury looked to play down the incident last night. “This was an accidental breach by the official side of the Treasury, no ministers were involved and no-one made personal or political profit from this mistake,” a spokesperson said. “The Treasury has put in place stringent measures to make it less likely this mistake will happen in the future.”

Picture: REUTERS

While the investigation into alleged market manipulation last month failed to find evidence of a leak, “there can never be positive proof that the suspicions were unfounded”, Scholar wrote. “So the damage to public confidence in these most important economic statistics remained,” he said, urging the chancellor to amend the rules over the dissemination of data.

NASDAQ ▲ 2,782.92 +21.54 £/$ 1.64 ▲+0.01 £/¤ 1.16 unc ¤/$ 1.41 unc



OSBORNE HIT BY DATA LEAK ROW

Facebook boss: don’t regulate us REGULATION BY ALISON LOCK

FACEBOOK founder Mark Zuckerberg defended the internet’s freedom of speech to world leaders at the Group of Eight summit in France yesterday. Smart-suited Zuckerberg (below) and Google chief executive Eric Schmidt both hit back at plans by French President Nicolas Sarkozy to regulate the world wide web, arguing that it aided democracy and free expression. The G8 has proposed that the internet is policed more stringently, arguing that intellectual property and privacy need to be protected. But the two internet moguls said regulation would hinder innovation. At a meeting at the Deauville summit on the issue, Zuckerberg described the web as “really a powerful force for giving people a voice.” “You can’t isolate some things you like about the internet, and control other things you don’t,” he said. Schmidt said: “The industry as a whole is concerned that premature regulation...can shut off whole new industries, whole new opportunities.” G8: PAGE 4

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CITYA.M. 27 MAY 2011

Halting our debt binge will be painful EDITOR’S LETTER

ALLISTER HEATH WELCOME to the new normal. For years, the UK economy has been fuelled by the unsustainable accumulation of debt, public as well as private. Now that the cheap money bubble has burst, and consumers, firms and the government can no longer go on borrowing as if there were no tomorrow, Britain will have to learn to live within its means. That will mean a much lower longterm rate of growth that reflects the UK’s reduced competitiveness, systemic skills and attitude problems, and our high-tax, high cost and highly

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retail is added to this, the ex-growth proportion of the economy hits 70 per cent. To Morgan, meaningful growth is thus mathematically implausible, as is the chancellor’s hope of slashing the budget deficit. I’m slightly more optimistic. Not all the borrowing of the past decade was bad or unsustainable; some of it was caused by the expansion of financial balance sheets, not all of which was pernicious. A booming global economy ought to allow more growth than Morgan seems to allow for. But it is clear that the growth rates being predicted in two years’ time are too optimistic. Giving up and attempting to turn the debt tap back on would be suicide. Instead, we must grow by liberating Britain’s supply-side: cut regulation, eliminate punitive tax rates, shake-up planning rules, stop bashing the City and make employing people more profitable. Armageddon can still be avoided – but time is running out. [email protected] Follow me on Twitter: @allisterheath

REGULATION BY ALISON LOCK BANKS with large insurance arms could sidestep the toughest elements of the new Basel III capital requirements, according to not-yet-released draft European Union legislation. The draft plans to roll Basel III out across the EU could let banks count more capital held within their insurance arms towards the quota they must hold, than institutions outside the bloc are allowed to. That would benefits banks such as Lloyds Banking Group, which has a large insurance arm, or French banks such as BNP Paribas and Société Générale, the Financial Times reported yesterday. The EU draft of the rules would also allow banks to continue issuing hybrid capital such as preference

shares or co-co bonds for longer than currently anticipated. Basel III bans banks from counting any hybrid debt instruments issued after its new standards were published in 2010 – whereas the EU draft would allow them to include any hybrid debt issued up until its draft becomes formal, which is thought to be in July. That would aid banks such as Credit Suisse that have continued to issue co-co bonds despite the rule. Basel III rules, though set by its committee, can be tailored by individual regulators.

The US Federal Reserve’s balance sheet soared to a new record of almost $2.8 trillion (£1.7 trillion) in the past week as it pushed ahead with its QE2 bond-buying programme, its data showed yesterday. The balance sheet data, a sign of the level of its lending to the financial system, was up from $2.74 trillion the week previously. Overnight loans to banks jumped to $11m per day in the week to Wednesday, up from just $3m per day the prior week. The Fed expects to continue the quantitative easing until June to shore up the US economy.

Deutsche silent on succession Deutsche Bank’s board batted away shareholder questions about who it was lining up to succeed chief executive Josef Ackermann at its annual meeting yesterday. Angry investors told the bank to end speculation over the lack of a successor, which is increasingly seen as a risk to the bank. Ackermann renewed his contract two years ago when the bank failed to find a replacement, but is expected to step down before it ends in 2013. He also pledged to deal with a spate of lawsuits to hit the bank.

Shoppers surprised the economists with a return to the high street in May

High street morale surges MORALE on the British high street took a huge leap in May, recording the second sharpest rise of all time, the GfK NOP consumer confidence index revealed today. People reported a boost to their confidence over personal finances and the general economic outlook. The last time the headline index accelerated this fast was in May 1993. “But before the businesses cele-

brate, it should be pointed out that we are improving from a rock bottom position and consumer confidence is still deeply in the negative,” warned Nick Moon of GfK NOP Social Research. The headline index jumped 10 points to a score of -21, yet remains lower than at the same time last year, when it measured -18 points. The sub-index for sentiment in the general economic outlook spiked upwards, to -15 from -30 in March. ECONOMICS: P16-17

NOW ROTHSCHILD TURNS HIS ATTENTION TO OIL

GERMANS ATTACK BP, SHELL FOR OVER-CHARGING FOR PETROL

EX-NASDAQ MANAGING DIRECTOR PLEADS GUILTY TO INSIDER TRADING

The financier Nathaniel Rothschild and former BP boss Tony Hayward will launch a new investment vehicle in the next couple of weeks as they look to raise £1 billion for acquisitions in the oil sector. The fund, called Vallares, is expected to publish its prospectus early next month and has recruited several respected businessmen to sit on its board.

Five big oil companies, including BP and Shell, are in trouble with the German regulator for over-charging drivers at petrol stations. The German cartel regulator accused BP, ExxonMobil, Shell, ConocoPhillips and Total of running an "oligopoly" with a stranglehold on 65pc of the market.

A former executive at the Nasdaq Stock Market admitted to using his position at the stock exchange to obtain nonpublic information, which he used to commit insider trading, prosecutors said. At a hearing in federal court in Virgina, Donald Johnson, 56 years old, said he purchased and sold the stocks of Nasdaq-listed companies based on inside information.

Lloyds Banking Group chief exec António Horta-Osório may be able to exploit a loophole in Basel III

UK ECONOMY BY JULIAN HARRIS



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deficit reduction plan will be undermined by low growth. Borrowing has become a way of life in the UK. During 1996-2002, total public and private borrowing averaged 4.9 per cent of GDP. Between 2003-2010, however, this had jumped to 11.2 per cent and, with the exception of 2008-09 when this fell to 7.8 per cent, triggering a collapse in output, annual borrowing never fell below 10.4 per cent. The result was fake prosperity. Over the past decade, borrowing drove output in financial services (+123 per cent), construction (+27 per cent) and real estate (+26 per cent), while lavish state spending (predicated on a tax base that never really existed) propelled health (+35 per cent), education (+27 per cent) and public administration (+22 per cent). Output in all other sectors is now five per cent lower than it was 10 years ago. Six of the eight largest sectors of the UK economy are dependent on private or public borrowing: 58 per cent of the economy is thus unlikely to grow. If

Fed balance sheet hits new high

Loophole for banks in Basel ▲

Editor Deputy Editor News Editor Night Editor Business Features Editor Lifestyle Editor Sports Editor Art Director Pictures

regulated economy, factors that were camouflaged during the bubble years. That doesn’t mean zero growth or a Japanese-style stagnation; and it certainly doesn’t mean a double-dip recession. But it means that even a good year won’t feel that great. Tim Morgan of Tullett Prebon goes one step further than I do in a fascinating paper that destroys the Labour party’s record yet also predicts that the coalition will fail to eliminate the deficit. He estimates that compound growth of 2.8 per cent between 2000 and 2008 would have been less than 1.4 per cent in the absence of what he calls “Brown bubble borrowing” – more than half of the “growth” we saw was artificial and unsustainable, he calculates. Morgan, who unlike most City economists doesn’t mince his words, has even launched his very own Armageddon Project – it seeks to predict what will happen if the coalition is right about the terrible dangers of a spiralling national debt while its opponents are also right that the

NEWS | IN BRIEF

WHAT THE OTHER PAPERS SAY THIS MORNING HSBC EMBROILED IN INTERNSHIP ROW HSBC has been accused of nepotism after its legal department implied it offered work experience only to the sons and daughters of its own executives. Richard Bennett, group general counsel, sent a letter rejecting a young woman who had sought unpaid work in his department. “HSBC does not have a structured work experience programme although, occasionally, arrangements are made for sons and daughters of HSBC executives, particularly if they work in the legal or compliance departments, to gain such experience,” he wrote.

GOOGLE REVEALS MOBILE PAYMENT PLAN Google and a group of partners including Sprint Nextel, Citibank and MasterCard plan to jump-start the mobile payments market in the US

with a system based on a free ‘Google Wallet’ app and a technology called NFC (Near Field Communications.) “Today, we’ve joined with leaders in the industry to build the next generation of mobile commerce,” said Stephanie Tilenius, Google’s vice-president for commerce and payments.

TIFFANY UPBEAT ON RECOVERY OF JAPAN BUSINESS Tiffany, the US-based luxury jewellery retailer, raised its full-year earnings outlook after first-quarter sales and profits beat expectations. The company also said that its Japanese business had begun to recover earlier than expected. The results lifted Tiffany shares by 8.6 per cent to $76.05 on Thursday in New York, their biggest intraday rise in a year, and the company called them “nothing short of outstanding”. Net income rose 26 per cent to $81.1m, or 63 cents a share, in the first quarter from $64.4m, or 50 cents a share, in the same period a year ago.

CHINA ADMITS TRAINING CYBERWARFARE ELITE UNIT China today admitted for the first time the existence of a super-elite unit of cyberwarriors – a team supposedly trained to protect the People’s Liberation Army from outside assault on its networks. The revelation of the 30-strong crack unit, known as the “Blue Army”, will confirm the worst fears of governments across the globe.

EUROTUNNEL TO CARRY ELECTRICITY FROM FRANCE TO UK Electricity will flow between Britain and France alongside Eurostar trains, after the operator of the Channel Tunnel unveiled a €250m (£217m) plan to run a cable under the sea. Eurotunnel has proposed an interconnector cable with France to help smooth volatility in energy supplies. The 500 megawatt cable will connect to Britain’s power system in Kent.

HOUSE VOTES TO BAN GROUND TROOPS FOR LIBYA The House on Thursday overwhelmingly voted to prohibit ground troops from being sent to Libya and only narrowly defeated a measure to force President Barack Obama to lay out plans to end the Afghanistan war, in moves that show the limits of congressional support for military involvement in overseas conflicts.

News

CITYA.M. 27 MAY 2011



EUROZONE BY JULIET SAMUEL PANICKING investors dropped the euro yesterday after comments by Eurogroup chairman Jean-Claude Juncker sparked a bout of anxiety over the fate of the single currency. Juncker raised the alarm by warning that the IMF might not be able to pay out its next instalment of aid to Greece if the sovereign does not have funding in place for the next year. “The IMF can only be active when there is a refinancing guarantee for 12 months,” he said, adding that such a guarantee is unlikely: “I don’t think that the troika (the EU, IMF and ECB) will come to this result.” He further stoked fears by saying that should the IMF refuse to contribute its third to Greece’s rescue funds, it would be politically difficult for the EU to plug the gap. “The expectation of the IMF is that the Europeans would step in for the IMF

NEWS | IN BRIEF

and take upon themselves the IMF’s portion of the financing… That won’t work, because in certain parliaments – Germany, Finland and the Netherlands and others too – there is no preparedness to do so.” In response, the euro dropped 12 cents against the dollar, 8p against sterling and five cents against the Swiss franc. Analysts speculated that Juncker could be attempting to scare Greece into taking its deficit seriously by indirectly raising the prospect of a default. The IMF is due to dispense its share of another €12bn (£10.4bn) in aid to Greece on 29 June as part of its €110bn bailout package. But the funds are subject to strict conditions, with the IMF, ECB and EU currently in Athens to examine its fiscal situation. The EU admitted recently that a “soft restructuring” of Athens’ debt is likely, which ratings agencies have said would effectively constitute a default.

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Tote bidders must wait for decision ▲

Juncker: IMF could turn off aid to Athens

SERBIAN FORCES ARREST RATKO MLADIC

BANKING BY ALISON LOCK

RATKO Mladic, the Bosnian Serb general allegedly responsible for the Srebrenica massacre of 8,000 Muslims during the Balkan war of 1992-1995, was yesterday arrested by Serbian troops after 15 years on the run. Self-dubbed “the Serbian God”, he is accused of leading forces in the 43-month siege of Sarajevo while carrying out a programme of ethnic cleansing against all non-Serbs in Bosnia. He was found in a village near the Romanian border.

MINISTERS failed to reach an agreement on the winner of the auction of state-owned betting group the Tote following final talks yesterday. The department of culture, media and sport was due to announce the winner of the auction yesterday but talks were apparently derailed after chancellor George Osborne was pulled out to take calls with International Monetary Fund leadership candidates. However, the lack of a decision also indicates that the two final bidders – BA chairman Sir Martin Broughton and the bookmakers Betfred – may be neck and neck. Sir Martin’s investment vehicle, Sports Investment Partners, improved its offer slightly, raising its cash payment to the Treasury to £77m from £75m and its annual payment to the racing industry to £11.5m from £11m. City A.M. understands that Betfred believes it offers a £40m higher payment to the government and has higher estimates of the Tote’s commercial revenues. A decision is expected today or early next week.

BAA chair robbed at knifepoint

Sir Nigel Rudd and his wife Lesley were said to be shaken but recovering yesterday after being held up in their Belgravia home by men armed with knives who stole valuables. The men, wearing stockings over their heads, held up the Rudds when they returned to their £7m home at about midnight on Monday after a night out. They forced their way in as the couple were closing the door, threatened them with knives and forced Sir Nigel to open his safe before taking £50,000 of jewellery and a designer watch.

LSE’s Rolet criticises hostile bid London Stock Exchange chief executive Xavier Rolet poured scorn on Canada’s Maple Group yesterday after it said it would pursue a hostile bid for the Toronto Montreal Exchange (TMX). Rolet dismissed the revised offer as almost identical to what the TMX board rejected last week and warned that any deal would leave the Canadian exchange among the most leveraged in the world. If the banks pursue the further takeover of TMX rival exchange Alpha and clearing group CDS, funded by share capital, the banks could gain more than 50 per cent ownership of the final exchange he said. Rolet also warned that hostile bids had proved difficult to execute.

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Terra Firma debt talks go slow

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Guy Hands’ private equity firm Terra Firma is making slow progress on refinancing a complex €5.1bn (£4.4bn) securitised loan in its German property group Deutsche Annington, as details of the bondholders’ voting rights emerge, City A.M. learned yesterday. Terra Firma has started the process of refinancing the debt despite it maturing only in 18 months. The loan documentation requires an unusual level of approval, up to 100 per cent, rather than the 75 per cent more often accepted, which is slowing down the process. Terra Firma is talking to bondholders and has hired Blackstone to advise it. It has owned Deutsche Annington for 11 years.

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News

CITYA.M. 27 MAY 2011

G8 countries to warn Greece over its massive debt burden ▲

WORLD ECONOMY BY HARRY BANKS

THE G8 leaders raised the alarm yesterday about government debts weighing down the world economy but pledged at a meeting in France to find funds to help new Arab democracies. Japan’s deputy chief cabinet secretary, Tetsuro Fukuyama, told reporters the G8 agreed Greece must do more to sort out its finances and

work with the IMF to solve its debt crisis. The Greek government has called emergency talks with the opposition for today as repayment deadlines loom and European officials have warned that aid could be withheld for a country where millions face many years of austerity at best. EU sources said European members of the G8 – Germany, France, Britain and Italy -- as well as European Union officials would com-

mit in a summit statement from the resort of Deauville to continue efforts to rein in the Eurozone debt crisis. As another Arab state, Yemen, appeared headed for civil war last night, leaders of the G8 -- the seven Western powers, plus Russia -- called on its president to join those of Egypt and Tunisia in stepping down. A draft of today’s final summit communique also contained strong censure of the Syrian and Libyan leaders.

CITY VIEWS: ARE YOU OPTIMISTIC ABOUT THE G8 SOLVING THE GREEK CRISIS? By Shiba Babamiri and Scarlett Archer LUKE WILDS | PICKTHORN

“Well, Greece needs a stronger economic policy and the solution needs to come from within the country. As they are in the EU we’re obliged to help them but we can’t keep bailing them out.” MARCUS RICCOBONI | RSA

“No, I think we should leave them alone as we can’t continue to bail them out. We tried once and it didn’t work. Their economy is too weak to be in Europe.” RICHARD PIPE | SOVAG INSURANCE

“I’m not optimistic at all because Greece is in too much deficit, but as EU members I think everyone should pull together and help.”

UBS rebuffs a Swiss exit ▲

BANKING BY JULIET SAMUEL

UBS has no plans to move its headquarters out of Switzerland, chief executive Oswald Gruebel said yesterday in response to a flurry of reports that the bank could re-domicile under pressure from Swiss regulators. But he did not deny reports that UBS is looking into a way of hiving off its investment bank or other parts of the bank to allay Swiss concerns about being the lead regulator to a bank with international operations too large for the country to bail out again. The bank said in its first-quarter results statement that it is “evaluating potential changes to our booking model and corporate structure in view of developing regulatory concerns and requirements, not only in Switzerland but also in the UK, US and elsewhere”. Any structural

changes will in part be aimed at mitigating the impact of Switzerland’s 19 per cent core tier one capital requirements, which are the highest any regulator has so far adopted. Analysts at broker Credit Agricole Cheuvreux suggested that this could mean ring-fencing the investment bank and moving its headquarters to the domicile that hosts most of its business, most likely London or New York. “Foreign regulators will increasingly demand capital to be located where the business is as they realise that only systemically important functions will be saved in the event of a crisis,” Cheuvreux analysts said in a note. But any ring-fencing would still probably not allow a subsidiary to duck Switzerland’s capital requirements altogether, due to Swiss bankruptcy law that demands “enforced solidarity” within a group.

Support for Conservatives dips as optimism for economy fades ▲

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POLITICS

UK SUPPORT for the Conservative Party has fallen slightly but most people do not believe the Labour opposition is ready to govern, blaming it for the country’s economic woes, an opinion poll showed yesterday. The May Reuters/Ipsos Mori Political Monitor showed Labour up two points since last month on 42 per cent, while support for the

Conservatives, the coalition government’s senior partners, fell five points to 35 per cent of those who plan to vote. Backing for the Liberal Democrats rose one point to 10 per cent, far below the roughly 24 per cent who voted for them a year ago. Economic optimism was down slightly, with just 29 per cent of Britons expecting the economy will improve in the next year.

Focus on Minerva bid

CITYA.M. 27 MAY 2011

Minerva gets £194m cash takeover bid ▲

PROPERTY BY STEVE DINNEEN

ADVISER: WHO’S ON THE MINERVA TEAM? BRIAN CASSIN GREENHILL

Property tycoons John (left) and Jamie Ritblat. Jamie is fronting a bid for Minerva.

The property dynasty PROPERTY BY STEVE DINNEEN



TROUBLED property developer Minerva yesterday confirmed it has received a preliminary cash offer valuing it at £194m. The bid for the Walbrook developer is from a consortium of firms led by Jamie Ritblat’s Delancey Real Estate Asset Management. One Minerva investor told City A.M. the bid is “an interesting offer”, saying: “Something has to happen soon, it has to either sell or launch a rights issue. There have been all sorts of rumours about a counter bid but this is the only thing on the table.” Minerva, which is saddled with debts of almost £860m, says the offer is a 21.4 per cent premium to its preannouncement closing price of 99.25p and a 53.5 per cent premium to its price before it informed the market it was involved in takeover talks. Minerva has agreed to pay almost £2m to the group if it backs out of the deal or its board votes it down.

The market was yesterday waiting for a possible counter bid. Rebel shareholder KiFin, the firm led by the South African property investor Nathan Kirsh who launched a failed bid and later a boardroom coup at Minerva last year, is seen as a possible rival. Others include Dubai-based investor Limitless and Iranian property entrepreneur David Shamoon. However, shares in Minerva closed up 14.6 per cent to 113.75p yesterday, below the proposed cash bid of 120.5p – suggesting the market did not expect a counter bid. A London-based analyst, who declined to be named, said the share price reflected uncertainty over how long the offer process would take and whether the bidder would get concessions from Minerva’s banks on its debt facilities. Minerva’s debt pile relates to two large office developments, the Walbrook and St Botolphs – both of which have struggled to find tenants large enough to satisfy the conditions laid down by Minerva’s banks.

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JAMIE Ritblat has long emerged from the strong shadow of his property tycoon father John. He became a well-known name in the City in his own right after his successful management buyout of the publicly owned Delancey Real Estate Asset Management firm in 2001. He has since been behind a string of high profile property deals

including snapping up Bovey Castle hotel and golf resort for £26.4m. He received a leg-up from his father, who was formerly chairman and chief executive of British Land. Jamie began working for the firm and moved onto the board in 1993. He left two years later to set up his own venture, with the backing of his father. John is renowned as a master businessman who made British Land one of the most successful property firms in the UK.

GREENHILL is financial adviser to Minerva. Heading up the team is co-head of European corporate advisory Brian Cassin. Cassin joined Greenhill in 1998 after working for six years with Baring Brothers International in London and New York and four years with the London Stock Exchange. Cassin has long been involved with Minerva, advising it on its long-running negotiations with KiFin. This included advising on KiFin’s offer for the company, which the board rejected. He also advised Emerson on its bid for UK power protection group Chloride and was involved in media group DMGT’s agreement to sell Study Group International to funds advised by CHAMP private equity. Joint corporate brokers are Citi and Peel Hunt, where Capel Irwin is heading up the team. Irwin last year led the charge in the corporate broking team for Hansteen Holdings acquisition of a German industrial property portfolio for £330m. Rothschild is financial adviser on the other side of the bid, with Alex Midgen and Richard Blackwell working on the deal.

News

CITYA.M. 27 MAY 2011

Promotions up a third at UK law firms ▲

the most London promotions, with nine of its 20 new partners based in the City. DLA Piper – the largest law firm in the world by number of lawyers – advanced 53 to its partnership worldwide, though just five are Londonbased. But the promotion of female lawyers to partner stayed at a similar level to last year, with just two firms in the top 10 – Clifford Chance and Eversheds – making up more than 30 per cent of their partner round with female candidates. Promotions in the Asian offices of UK firms were particularly numerous, as firms continue to grow their presence in financial centres such as Hong Kong and Singapore. Clifford Chance for example, the UK’s biggest law firm by revenue, made more than 50 per cent of its promotions in its Asia offices. Just six firms in the top 50 – and none in the top 10 – made fewer promotions than last year.

LEGAL SERVICES BY ELIZABETH FOURNIER

PARTNER promotions at the UK’s top 50 law firms have risen by almost a third compared to last year, according to research by Legal Week magazine. The figures show an upturn in confidence throughout the Magic Circle firms and beyond, with recent financial results supporting the return to form. Across the top 10 UK firms by revenue (see below), there have been a total of 226 partner promotions this year, compared to 184 in 2010. The latest numbers are a stark contrast to those released during the recession, with promotions to law firm partnerships falling by a third between 2008 and 2009. Among the 50 firms listed, 39 per cent of promotions were in London, with 191 partners promoted in the City offices of UK firms. Of the top ten, Fleet Street-based Freshfields Bruckhaus Deringer made

Female promotions %

TOP 50 PARTNER PROMOTION 2011 Female promotions 2011 (2010)

Deputy Prime Minister Nick Clegg yesterday chose the NHS as a coalition battleground as he insisted that the service would not “change for change’s sake”. In his first major speech on the health service since first signalling his concerns over the NHS reforms, Clegg stressed that there were no arbitrary deadlines for reform. And in a bid to remind the electorate

of the differences between his party – the Liberal Democrats – and the Conservatives, Clegg said change would not happen “overnight”, and made it clear that GPs would not have to take over from Primary Care Trusts if they were not ready to do so. He suggested the NHS reform bill may need to go back to a committee of MPs for further scrutiny, and reiterated his opposition, first voiced last month, to promoting competition in the sector at the sacrifice of collaboration.

Global partner promotions 2011 (2010) London promotions 2011



POLITICS

Firm

Clegg in U-turn on NHS reform plans

Deputy Prime Minister Nick Clegg yesterday insisted that change to the NHS would not happen “overnight”, making it clear that controversial reforms would be significantly slowed down and more private sector competition introduced only with great care

Rank

6

1 Clifford Chance

23 (22)

4

7 (1)

30.4%

2 Linklaters

18 (14)

6

5 (4)

27.8%

3 Freshfields Bruckhaus Deringer

20 (18)

9

2 (3)

10%

4 Allen & Overy

21 (18)

6

2 (3)

9.5%

5 DLA Piper*

53 (41)

5

11 (15)

20.8%

6 Hogan Lovells

36 (21)

7

10 (4)

27.8%

7 Herbert Smith

13 (18)

6

3 (6)

23.1%

5 (2)

5

0 (1)

0%

9 Eversheds

22 (19)

4

7 (6)

31.8%

10 Norton Rose

15 (11)

4

7 (1)

46.7%

8 Slaughter and May

* Includes at least one non-lawyer partner

data from Legal Week

Focus on Man Group

CITYA.M. 27 MAY 2011

Carnwath gives up senior role after decade

Japan fund is boost to Man as assets soar



CORPORATE GOVERNANCE

Man’s Peter Clarke said the Japan fund had “phenomenal success” ▲

FUND MANAGEMENT BY HARRY BANKS MAN Group reported a jump in assets and better-than-expected profits yesterday, as a big fundraising in Japan helped the world’s largest listed hedge fund firm accelerate its belated recovery from the credit crisis. The firm – which now runs $71bn (£43.3bn) in client assets, up three per cent since March – attracted $2bn alone for a new open-ended version of its flagship AHL fund in Japan, signalling a sharp rebound in confidence in Man’s computer-led strategies. The fundraising is above the $1.5bn it said it had raised, which had smashed analysts’ forecasts, and comes despite poor returns from AHL this month after a commodity sell-off. “The strong fund flow momentum since year-end is a clear positive,” Citi analysts said in a note, while pointing out that “unsustainable” factors had driven the forecast-beating profits. Shares in Man Group closed up 2.4

per cent yesterday at 245p, valuing it at almost £4.5bn. “The phenomenal success of the Japan AHL launch demonstrates the concerns people had around the ... earthquake and ... tsunami around our asset-raising were completely unfounded,” said Man’s chief executive Peter Clarke. Man Group said in March that clients had finally begun to return to its funds, helped by last year’s $1.6bn acquisition of GLG, ending a two-year streak of net outflows. ANALYSIS l Man Group 290

p

245.00

280

26 May

270 260 250 240 230

28 Feb

18 Mar

7 Apr

3 May

7

Picture: REUTERS

Change in fortunes looks here to stay THINGS finally seem to be looking up for Man Group. After recovering from being hit by big outflows throughout 2009 and 2010, it has now also managed to sidestep the spectre of the Japanese earthquake, with the launch of a Japan version of its AHL fund attracting $2bn of investment. The Nomura Global Trend is performing well ahead of expectations even without accounting for the volatile market, and will be a useful precedent for management’s stated intention that the greatest growth opportunities are with similar open-ended alternatives and institutional funds. If management can maximise

23 May

Everyone waves for the camera.

the prospects in alternatives, then it should be able to build on the rebound of AHL and a pick up in inflows to gain traction on some much-needed momentum. That means the gap between Man Group and its peers – against whom it’s currently trading at a more than 200 per cent discount – could start to close. While AHL may dominate any share movement in the short term (as evidenced by the two per cent lift on yesterday’s figures), the planned increase in diversity is likely to prop up longer term growth as well.

BOTTOMLINE

Analysis by Elizabeth Fournier

ALISON Carnwath yesterday announced she was standing down as Man Group’s senior independent director after 10 years in the role. She will be replaced by Patrick O’Sullivan. Carnwath, who is also a director of Barclays and chairman of Land Securities, is staying on the board at Man. Under best practice in corporate governance, directors that have been in the senior independent role for 10 years are considered to be no longer sufficiently independent and are often expected to give up that position. Carnwath spent some of her early days in the City in the corporate finance department at Schroders where she worked alongside the likes of Citi’s David Wormsley, Tesco’s Sir Richard Broadbent and M&S chairman Robert Swannell. She is one of the judges of City A.M.’s annual awards that take place this year in September.

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CITYA.M. 27 MAY 2011

Apple warns Mac users as virus appears ▲

TECHNOLOGY BY KATIE HOPE

APPLE is fighting what security experts warned yesterday may be the most pernicious types of computer virus to ever target its line of Mac computers. The company was forced to issue a security advisory warning to customers about a recent scam that infects Macs with malicious software that wrongly tells them their computer is infected with a virus. The ultimate goal is to get credit card numbers and other valuable personal information. It is one of the first major campaigns that cyber crooks have launched against Mac users. To date, criminals have focused on writing malicious software for machines running Microsoft’s Windows operating system, which inhabits more than nine of every 10 personal computers. But as Macs have grown in number, they have become more attractive targets. The fake anti-virus malware is downloaded when people click on links from tainted search engine

results for popular queries, according to anti-virus software maker McAfee. It also spreads when users click on links to malicious sites that might be included in emails, Tweets or Facebook messages. Apple said it will issue an update for its Mac operating system “in the coming days” that will automatically find and remove malicious fake antivirus software. It will also warn Mac users when they download such programmes. In the meantime, Apple has issued advice on how users can clean up machines that have been infected by the malicious software, which goes by names including MacDefender, MacProtector and MacSecurity. It said any web page that looks like a Finder window that claims to be scanning your Mac is fake and users who see these pages should quit their browser right away and clear any downloads. The company advised that users should turn off the “Open ‘safe’ files” option in their Safari browsers general preferences to keep the file from opening automatically if it is accidentally downloaded, it said yesterday.

Virgin Atlantic expects to unveil new partnership within months ▲

TRANSPORT

VIRGIN boss Sir Richard Branson said yesterday up to three suitors of his Virgin Atlantic airline are set to bid for a stake in the company, with an announcement on the tie-in due within the next three months. Branson, speaking at an event in the States, said he will remain involved with the carrier as a shareholder, even if he decides to sell down some of his stake to a new partner. He added that Singapore Airlines, which holds a 49 per cent stake in Virgin Atlantic, has not yet decided whether to offload some of its hold-

ing as part of the reshuffle. Virgin hired Deutsche Bank earlier this year to look at options for shoring up the carrier’s position in the industry as its rivals team up on routes to save resources. British Airways and American Airlines recently joined forces on some routes over the Atlantic, with BA in turn benefitting from synergies with new partner Iberia. Branson’s remarks come less than a day after he said in an interview that his banking operation, Virgin Money, is gunning for around 600 branches owned by Lloyds Banking Group to make the firm a big contender on the high street.

UK resolution plans diverge from peers ▲

BAKED beans maker Heinz reported a lower than expected fourth-quarter profit yesterday and said it plans to close five factories and cut thousands of jobs to raise its long-term earnings growth target for 2012. The company’s net income rose to 69 cents (42p) per share at the end of April up from 60 cents a year earlier, down from Wall Street’s estimate of 72 cents.

9

BANKING BY JULIET SAMUEL

THE UK is the only major Western country so far to approve temporary public ownership of collapsing banks, a report by law firm Clifford Chance shows. In a comparison of resolution regimes, which allow a regulator to take over and wind up failing financial institutions instead of bailing them out, Clifford Chance determined the

UK is the only jurisdiction, out of the US, Germany and the European Commission, that will allow “temporary public ownership” of a failing bank. The UK is also unusual in not opting for a “pre-funded” regime, whereby a levy on banks would fund the costs of administering a resolution procedure. Instead, George Osborne is using the UK bank levy for general spending. However, the regimes devised so far are not final and details could change.

10

The Capitalist

ALL CHANGE AT LLOYD’S AS IT RINGS 25 YEARS IT MAY seem like only yesterday for many City veterans, but today marks 25 years since the first managing agents moved into the landmark Lloyd’s building on Lime Street. So happy anniversary to the insurance giant, which still shows traces of more than 300 years of Lloyd’s history, such as the famous Lutine Bell, which was salvaged from the wreck of HMS Lutine, the frigate that landed Lloyd’s with one of its first major insurance claims when it sank carrying bullion in 1799. The bell is rung today by Dave Hughes, one of the insurance firm’s “waiters”, whose role dates back to 1688 at Lloyd’s first incarnation as Edward Lloyd’s coffee shop, where marine insurers met to write cover for the ships of the day. Mobile phones and the internet have ended the days when waiters were the criers of market-changing news, and the Lutine Bell – once used to alert the market whether ships had returned safely or had been found wrecked on the rocks – is now only used for ceremonies. The bell rings twice for good news and once for bad, such as after Princess Diana’s death in 1997. “We had a condolence book and the queue went right around the building,” Hughes recalled. Hughes also witnessed the only time the bell has been rung three times: the day Lloyd’s celebrated surviving the company’s near-collapse in 1995 after its £3.2bn restoration plan. Sixteen years later, and still – thankfully – a one-off.

BARGAIN BASEMENT THE FALL-OUT from the freezing of the Libyan Investment Authority’s (LIA) assets continues, as The Capitalist hears the advisers for the LIA’s London property portfolio are having a hard time securing tenants. Ordinarily, office space at 14 Cornhill opposite the Bank of England would be one of the most desirable business addresses in the City. But not when all rents paid sit indefinitely in a bank account frozen by the Treasury, and the Libyan landlord issue prevents any busi-

EDITED BY HARRIET DENNYS

CITYA.M. 27 MAY 2011

Got A Story? Email [email protected] Follow The Capitalist on Twitter: @citycapitalist

The Lutine Bell has rung three times only once in the history of Lloyd’s: when it was saved from near collapse

Sign here: London students with the Charter ness dealing with the US. As a result, the building’s property manager James Andrews has given its latest leaseholder, environmental consultancy RPS, two years rent free. The company joined Aviva Investors, Vestra Wealth and Russian bank VTB as a Cornhill tenant when it signed a ten-year lease on 20 March, but it will only contribute service charges and business rates until 2014, when it will start paying rent of £35 per square foot. The deal was struck after discussions with the directors of Ashton Global Investments, the British Virgin Islands vehicle owned by the LIA’s sovereign fund Lafico. Jeremy Grey, managing director of James Andrew, said: “We took the view that it was better to have someone covering the costs rather than leaving the space sitting empty.” If any other City firms need some cut-price commercial space, The Capitalist hears there is still one retail unit available on the Lombard Street side of 14 Cornhill, marketed by Cushman & Wakefield. Form an orderly queue…

BLAIR TALKS SHOP What does the M&S food hall have to do with conflict resolution in Palestine? A lot, according to Tony

Lloyd’s waiters move the Lutine Bell to its current resting place

Blair, who made a rare public appearance in London yesterday to discuss the issue with Apax founder Sir Ronald Cohen at an event hosted by trade body UK Israel Business and the Portland Trust. In between some signature “I’m Tony” hand gestures, Blair paid tribute to audience member Lord Andrew Stone, who has been working on efforts to get UK retailers to buy Palestinian farm produce. Blair was keen to assure his audience of City grandees, including Sainsbury’s chairman David Tyler, Deloitte rainmaker Neville Kahn and former Lloyds boss Sir Victor Blank that cultivating business links with Palestine will undermine the desire for extremist politics. But Ronnie Cohen couldn’t resist a jab: “Politicians tend to follow public opinion rather than lead it,” he noted. “We have that tendency in my profession,” Blair agreed cheerily.

versus his BBC nemesis Robert Peston, CNBC clashing with Bloomberg and the Financial Times taking on the Wall Street Journal – not to mention the City A.M. squad, who are already “match fit”. Paddy Power’s online betting will open on Monday, when Sky News, the tournament’s most elderly team, may or may not have the longest odds.

BRIDGING THE GAP THE CITI headquarters in Canary Wharf was the scene of the launch of the Young Enterprise Build a Bridge Charter, which aims to help young people “cross the bridge between education and work”. Mark Cahill, MD of Manpower and Nigel Davis, regional director of HSBC, turned out to support the scheme, which is collecting as many signatures as possible from the worlds of business and politics to promote enterprise education. Expect to see Enterprise Studies on the curriculum before the year is out.

MATCH OF THE DAY MASTERCHEF MENU A BANK Holiday excursion with a difference.

THE TEAMS have been drawn up for the City’s fiercest football tournament: the five-a-side Diageo City Challenge in aid of the Stroke Association on Sunday 5 June. Old scores will be settled on the astroturf at the Bank of England Sports Centre in Roehampton: Sky News City editor Mark Kleinman

City restaurant High Timber is offering a sixcourse menu this weekend cooked by Masterchef finalist Tom Whitaker (pictured left), who was snapped up after the show to train under head chef Justin Saunders. For reservations for the £75-a-head offer, call High Timber on 0207 248 1777.

12

Consumer News

CITYA.M. 27 MAY 2011



RETAIL BY JOHN DUNNE

ANALYSIS l Burberry 1400

p

1260.00

26 May

1350 1300

1200 1150 1100 18 Mar

7 Apr

3 May

23 May

Picture: GETTY

ANALYST VIEWS: IS THERE MORE GROWTH TO COME FROM BURBERRY ? Interviews by John Dunne FRASER RAMZAN | NOMURA

“ “ “

Consistent delivery by Burberry management has seen earnings per share upgraded and the stock re-rate as such accelerated investment should be seen as a potential net positive for the medium term growth rate of the business. The decision to invest further makes strategic sense in our view.

RICHARD HUNTER | HARGREAVES LANSDOWN

” ” ”

Burberry remains a rare and notable example of a retailer enjoying a stellar growth trajectory. Indeed, this success story is held back only by valuation concerns – the shares have risen 116 per cent over the last year. As such, the market consensus is that Burberry remains a ‘hold,’ albeit a strong one.

NICK BUBB | ARDEN

1250

1050 28 Feb

Burberry chief Angela Ahrendts insisted its spending spree would pay off

Burberry’s figures are predictably excellent, but have been met with profit taking, after the strong run in the shares. Burberry is on a very high rating when compared with the likes of Supergroup and although it is a very good, wellrun company continuous growth becomes difficult.

SPORTINGBET yesterday agreed terms for its acquisition of Australian online bookmaker Centrebet, which it will look to fund by raising £130m through the issue of new shares and a convertible bond. Sportingbet will issue 154,761,904 new shares at a price of 42p each and £65m in nominal value of convertible bonds. Chief executive Andrew McIver said the deal would make it the leading corporate bookmaker in the “fast-growing” Australian market.

Rank hits back at £586m Guoco bid LEISURE



BURBERRY is stepping up spending on new stores to cash in on a boom in demand for luxury goods in Asia as it met forecasts with a 39 per cent jump in full-year profit. Profit for the 12 months to the end of March were £296m with revenues up 27 per cent to £1.5bn. The luxury British retailer said the investment would limit growth in profit margins in the coming year, sparking a retreat in its shares, which closed 4.6 per cent down yesterday at 1,260p, after recent strong gains. Chief executive Angela Ahrendts said she was sure the spending would pay back in what she described as very strong recovery in demand for luxury goods, led by Chinese shoppers and tourists. “It is time to get our retail footprint up to par with consumers’ perception of the brand,” she said. The group said it would invest £180200m in 2011/12, up from £108m in

the year to the end of March. About half will go on new shops, including 20 in fast-growing emerging markets like Brazil, India and Mexico, with the rest spent on upgrading and expanding shops in flagship cities like Chicago, Milan, Hong Kong and Paris, as well as doubling selling space in the group’s home city of London. Burberry will spend £320m extending its store in the Knightsbridge district, as well as relocating and extending its store on major shopping thoroughfare Regent Street.

LEISURE



Burberry sees profits surge as Asia booms

Sportingbet says Centrebet deal terms agreed

RANK Group yesterday stepped up its defences against a takeover bid from its biggest shareholder, telling investors that Guoco Group’s offer “substantially undervalues” the casino and bingo hall operator, and that shareholders should reject the offer. Asia-based Guoco Group’s 150p approach, which valued Rank at £585.8m, was triggered after the property and investment manager raised its holding to 41 per cent.

14

Consumer News



LEISURE

YOUNG’S Brewery yesterday announced a profit rise – fuelled by food sales and a strong performance at its managed pub division. Adjusted operating profit at Young’s Brewery increased by 7.1 per cent to £21.7m in the year to 4 April. The revenues increased nearly 12 per cent to £142.6m and the dividend per share was up two per cent at 13.26p. Managed house revenue

increased 13.2 per cent to £127.8m, with same outlet like for like revenue up 1.9 per cent, and operating profit up 11.1 per cent. Young’s bought upmarket pub chain Geronimo Inns for £60m at the back end of last year, adding 26 strong pubs to its estate. Chief executive Stephen Goodyear said: “This has been a productive and exciting year. Overall, Young’s is in very good shape. Our food sales were also very strong. We are very pleased with these results.”

New chairman at helm of brewer LEISURE BY JOHN DUNNE



Young’s profit is up after food sales lift

CITYA.M. 27 MAY 2011

NICK Bryan was yesterday announced as non-executive chairman at Young’s, taking over from Chris Sandland who has been with the company for 38 years. Bryan, 53, a co-founder of drinks dispenser service company Innserve, has also gained experience through various positions within Courage, including as managing director of Courage UK. He was a partner at BDT Capital

in the finance sector, and is a chartered accountant. Bryan has been a nonexecutive member of the Young’s board since 2006. He has also worked at Lonrho and Hanson. Young’s said yesterday he already knows the business and was a natural choice.

Partners and was a member of the management committee at the private equity group Investcorp. During this time he held chairman and non-executive director roles at various Investcorp companies including Welcome Break and Gucci. He began his career

NICK BRYAN

BAT in $452m swoop to buy Protabaco ▲

CONSUMER BY HARRY BANKS

BRITISH American Tobacco (BAT) said yesterday it had agreed to buy the privately owned Productora Tabacalera de Colombia, the second largest cigarette company in Colombia, for $452m (£277m). The London-based second biggest cigarette maker in the world said the deal will elevate it to second from third place in Colombia, Latin America’s fourth largest cigarette market with total industry sales of around 17bn cigarettes in 2010. “This investment will strengthen and complement our position in an important market and fill a strategic gap in our Americas region,” said Mark Cobben, BAT’s director for its Americas region in a statement. Privately owned Protabaco sold 5.5bn cigarettes in 2010, accounting for almost one third of the domestic market. Its biggest brand, Mustang, is the country’s second best selling cigarette with a market share of around 18 per cent. BAT itself sold 708bn cigarettes in 2010. BAT said funding for the cash acquisition will be from the group’s existing resources. The deal represents a multiple of 11.3 times Protabaco’s $40m domestic 2010 earnings before interest, tax,

depreciation and amortisation (Ebitda) on net domestic revenues of $110m. The company said the transaction is subject to competition authority approval and final confirmatory due diligence. Last month, BAT posted a five per cent rise in first-quarter sales, boosted by pricing gains, but said volumes continued to soften and warned of challenging trading amid tough global economic conditions. The company’s shares climbed 1.3 per cent to 2,717p after the deal was announced yesterday. BAT, which has 200 brands worldwide, including Dunhill, Lucky Strike and Kent, was advised by investment bank Rothschild on the Protabaco deal. One of the company’s key aims is to make acquisitions to grow across the globe. ANALYSIS l British American Tobacco 2800

2,717.00

p

26 May

2700 2600 2500 2400 2300 2200 28 Feb

18 Mar

7 Apr

3 May

23 May

ADVISER: ROTHSCHILD ROBERTO PAIVA ROTHSCHILD

ROBERTO Paiva, vice chairman of Rothschild Latin America and a board member of Rothschild Mexico, led the deal team on BAT’s acquisition of Protabaco. Cambridge educated Paiva has 20 years experience, ten of those with Rothschild and previously Lazards. He recently handled the €1.2bn acquisi-

tion by MAN of Volkswagen’s truck business in Brazil. The deal for Protabaco saw negotiations starting in January, with a team of bankers in London backing up Chile-based Paiva. He dealt directly with the family owners of the Colombian firm, which had been an acquisition target for rival Philip Morris. The negotiations were described as “smooth” and the price tag was the same as that offered by Philip Morris two years ago. That bid was blocked by competition watchdogs. Paiva’s success in sealing the deal now gives BAT a strong footprint in the Colombian market.

News

CITYA.M. 27 MAY 2011

Ofcom finds O2 is best for mobile broadband speeds

MOBILE BROADBAND | IN NUMBERS

17%

1.5Mbit/s is the average mobile download speed



of UK households use mobile broadband

TELECOMS BY STEVE DINNEEN

O2 is the UK’s best network provider for mobile broadband, according to new Ofcom data. Vodafone comes second, followed by 3, with Everything Everywhere trailing in last place. The survey found that 17 per cent of households regularly use mobile broadband, with seven per cent relying on it for all of their online

0.5 seconds to download a page with fixed broadband

8.5

7%

seconds to download basic webpages on a mobile

use it as their only means of internet access

Ad slump hits DMGT shares ▲

MEDIA BY STEVE DINNEEN

DAILY Mail & General Trust (DMGT) did nothing to dispel the gloomy mood in the UK advertising market yesterday when it announced its ad sales for the last two months have dropped below levels seen last year. The news sent the firm’s shares tumbling as much as nine per cent before settling 7.5 per cent lower at 448.6p. The media group’s Northcliffe regional newspaper division was hardest hit, with revenues falling nine per cent and operating profit plummeting 35 per cent, despite an 11 per cent headcount reduction. Ad revenues were also down nine per cent to £85m. Revenues from national newspapers, which include the best-selling mid-market tabloid the Daily Mail, fell three per cent but operating profit rose five per cent. Despite the slowdown in the adver-

tising market, the group saw its revenues increase three per cent to £991m in the first six months, with profits rising eight per cent to £144m. It was buoyed by a strong performance by its business-to-business operations, which include financial information, risk-management services and events. Chief financial officer Stephen Daintith said he expects fullyear revenue and profit growth to broadly reflect the first half. ANALYSIS l Daily Mail and General Trust 580

p

560

448.60

540

26May

520 500 480 460 440 28 Feb

18 Mar

7 Apr

3 May

23 May

Hedge fund calls for Microsoft leader Steve Ballmer to leave ▲

TECHNOLOGY

INFLUENTIAL hedge fund manager David Einhorn has called for Microsoft chief executive Steve Ballmer to step down, saying the world’s largest software company’s leader is stuck in the past. The comments by outspoken Einhorn, who made his name warning about Lehman Brothers’ financial health before the investment bank’s

15

collapse, are the most pointed yet from a high-profile investor against Microsoft’s leadership. Einhorn said: “His continued presence is the biggest overhang on Microsoft’s stock.” Shares in the firm have dropped six per cent in the last two weeks after it agreed to pay $8.5bn (£5.2bn) for internet phone service Skype. A Microsoft spokesman declined to comment on Einhorn’s remarks.

activity. The survey – which used dongles rather than smartphones – also showed the gulf between fixed broadband speeds and mobile connections. While it takes less than a second to open a page on an average broadband connection, it takes more than eight seconds when using a mobile device. The average download speed on a mobile connection was 1.5 megabits per second, compared with 6.2

megabits per second on a fixed connection. Users in London, while generally achieving faster speeds, are more likely to find their connections lagging during peak times. Ofcom also formally banned threeyear broadband and phone contracts, with providers now only able to offer contracts of up to two years, bringing the UK in line with new European Commission rules. Providers must also offer 12 month contracts.

16

Economics

NEWS | IN BRIEF

CITYA.M. 27 MAY 2011

FAST INTERNET CONNECTION HELPS CHILDREN

BBC staff get private healthcare The BBC has spent over £2.1m on private health insurance for its staff in the last three years, the Taxpayers’ Alliance (TPA) will reveal today. A further £150,000 has been spent by the Welsh language channel S4C, to fund private healthcare cover for some of its employees. “Viewers already pay for the NHS through their taxes and if it’s good enough for us then it’s good enough for them,” said the TPA’s Matthew Sinclair.

Concerns rise over price pressures



ECONOMICS BY ALISON LOCK

Inflation expectations sprang back up in May, according to a survey by YouGov. The median for inflation expectations in the year ahead rebounded to 3.4 per cent in May, having fallen from 3.5 per cent in March to 2.9 per cent in April. The consumer price index hit 4.5 per cent last month.

French high street morale lifts Consumer confidence edged up in France this month, it was revealed yesterday. A leading index of sentiment rose by one point to 84. Meanwhile the number of people claiming unemployment benefit fell by 6,300, in another positive data release for the country.

German imported inflation slows German import price inflation slowed to 9.4 per cent annualised in April, down from 11.3 per cent in March.

Osborne’s growth forecasts slammed by Tullett Prebon

THE internet encourages social interaction for children and adolescents, a German thinktank claimed last night. “The researchers refute the myth that the internet isolates people socially,” the Munich-based Ifo institute said. A fast internet connection can result in children doing more sport and extra-curricula activities, Ifo found.

®

1 • 2 • 3 JULY 2011

A CITY broker attacked government growth forecasts as overly optimistic yesterday and warned of an “exceptionally bleak” outlook in a damning assessment of the economy’s progress over the past decade. Tullett Prebon, the brokerage led by investment maverick Terry Smith, issued a doom-filled prediction that government growth forecasts would prove unachievable as the UK weaned itself off debt-fuelled spending. The bearish forecast claimed that the past decade of expansion was propped up by personal and government overspending. That has left the economy skewed towards sectors that depend on either private or public borrowing, global head of research Tim Morgan argued in a strategy note.

These sectors, including financial services, construction and real estate, as well as health and education, now account for 58 per cent of UK GDP and so leave the economy vulnerable as government funding stops. “Six of the eight largest sectors of the UK economy are dependant either on private borrowing or on public spending,” Morgan said. “These sectors are now set to contract rather than expand, which renders aggregate economic growth implausible.” Ignoring international and independent forecasts for 1.7 per cent UK growth in 2011, Morgan rubbished chancellor George Osborne’s view that growth will drive the UK’s recovery. “We see no reason whatever to assume this,” he said. “If this doesn’t happen – and we are convinced that it can’t – the deficit reduction plan will come apart at the seams.”

US outlook knocked by slow GDP growth ▲

US ECONOMY BY JULIAN HARRIS HOPES for a strong American recovery were dashed yesterday by disappointing GDP figures and a surprising upturn in the number of new people claiming unemployment benefits. First-quarter growth came in at an unchanged 1.8 per cent for the US, below the expectations of economists who had anticipated growth to be revised above the two per cent mark. Growth is down from 3.1 per cent in the final three months of last year, with worse news lying in the breakdown of yesterday’s data. Annual consumption growth was revised down to 2.2 per cent

(from 2.7 per cent). While offset partly by stronger inventories, “this means we could now see a sharper run down in inventories in the second quarter,” said Paul Ashworth of Capital Economics. The US Federal Reserve has forecast that the economy will expand by over three per cent this year. Initial jobless claims jumped to 424,000 last week, from an upwardly revised 414,000 (from 409,000) in the prior week, pointing to a painfully slow improvement in the nation’s job markets. Many economists had expected a decline in the number of fresh jobless claims. The four week moving average for claims eased slightly to 438,500 from a revised 440,250. Employment growth of less than

200,000 for this month is being anticipated by many economists. “Our model suggests that payroll employment increased by around 150,000 in May,” Capital Economics said yesterday. “That would be the smallest increase since January and would be especially disappointing after April's healthy 244,000 gain.” “There is no doubt the economy has slowed,” said Robert Dye of PNC Financial Services in Pittsburgh, which is expecting a rise in payrolls of around 180,000 to 200,000 for the month. “We will call the first half of 2011 as a soft patch. We should see growth accelerate in the second half in the three per cent to 3.5 per cent area.”

City bonuses fail to reach pre-slump peak as regular pay boosted instead ▲

EMPLOYMENT

Admission strictly by advance ticket only For tickets or hospitality please call: +44 (0)1243 755055

www.goodwood.com ®

E STATE P ARTNER OF G OODWOOD

BONUSES in the financial sector have held up this year but remain below their pre-recession peak, with evidence of regular pay being boosted instead. Bonuses averaged £901 a week in February and £760 a week in March this year, it was revealed today, roughly on a par with the same figures from last year (£975 and £714 respectively). Strong pay growth “at around five per cent and above” (roughly double the UK average) in financial

services “may also suggest that earnings growth in the sub-sector has transferred from bonuses to regular pay,” Incomes Data Services said. Along with strong bonuses in the factory industry, the finance sector’s payouts have propped up average bonus season rates to roughly the same level as 2010. However, bonuses in the construction and retail sectors have fallen year-on-year. “Payments are significantly higher than in the recession-hit bonus season of 2009, but have still not quite reached the levels seen before

the crash,” the report concluded. Across the UK, the average weekly bonus came in at £72 in March, three per cent higher than the same time last year. ANALYSIS l Bonuses remain below their pre-recession peak

2,000 £pw

Bonuses Regular pay

1,600 1,200 800 400 0

Source: Incomes Data Services 2000

2003

2005

2007

2009

2011

Economics

CITYA.M. 27 MAY 2011

Number of people leaving the UK plummets by 20pc

ANALYSIS l The number of people migrating away from the UK has fallen since 2009 700



THE number of people migrating away from the UK has plummeted by 20 per cent, data from the Office for National Statistics showed yesterday. In the 12 months to September last year, 344,000 people departed British shores for a life elsewhere. This compares to the year to December 2008,

when 427,000 people left. Government plans to cut net immigration to “tens of thousands” were dealt another blow by the data. The rate of immigration actually dropped from December 2008 to September 2010, yet the lower number of people leaving the UK resulted in a net increase in the figures. “A net migration target makes no sense as we cannot control emigra-

NEWS | IN BRIEF Italian business morale takes a dip Italian business confidence sank by more than expected this month, according to data from the ISTAT office released yesterday. The index measured 101.3 in May, from a downwardly revised 102.6 in April. “It is important for Italy that foreign orders stay on an upward trajectory,” said Fabio Fois of Barclays Capital. “The economic recovery has been led by

exports contributions. Going forward, the outlook for the euro will be key. In fact, Italy has one of the largest export elasticities to its exchange rate,” Fois added.

Small businesses avoiding failure Fewer small companies became insolvent in April than the same time last year, data from Experian revealed yesterday. The number of failing UK companies dropped by 0.55 per cent year on year.

tion,” commented Chris Nicholson, head of the Centre Forum thinktank. Net immigration increased to an annual rate of 242,000, up from 163,000 over the same period. Immigration for studying rose to 241,000 in the year to September 2010, a 30 per cent rise on the previous year. “Overseas students should be excluded from the government’s target,” Nicholson added.

Migration (thousands)

Immigration

600 500 400

MIGRATION BY JULIAN HARRIS

17

Emigration

300 200

Net migration

100 0

Dec 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 Jun 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010

Source: Office for National Statistics

18

News

CITYA.M. 27 MAY 2011

London & Stamford to invest £1bn ▲

PROPERTY BY HARRY BANKS

London & Stamford boss Raymond Mould is looking for investments Picture: GETTY

BRITISH property investor London & Stamford yesterday said it saw investment opportunities in retail, logistics and London residential for its £1bn war chest, after reporting a rise in 2010 net asset value (NAV). The company, which moved from the London Stock Exchange’s junior

AIM market to the main board last October, said its NAV per share for the year to 31 March was 122.4p, up 1.4 per cent from 120.7p last year. “We see the potential for outperformance in the central London residential market, the distribution sector and in prime retail investments as exciting opportunities for the further investment of our £1bn of firepower,” executive chairman Raymond Mould

said. London & Stamford said its revaluation surplus, including share of associates, was £51m, down 50 per cent from £101.9m the previous year. It reported £1.5bn assets under management. Net income was £41.8m, up 160 per cent from £16.1m the previous year, due to three portfolio acquisition during the year, the group said.

ANALYSIS l London & Stamford Property 134

p

131.00

26 May

132 130 128 126 124

28 Feb

18 Mar

7 Apr

ANALYSIS l Shanks

Balfour set to reshuffle its advisers

125

p

3 May

23 May

121.34

26 May

115

105 28 Feb

18 Mar

7 Apr

3 May

23 May



Trading and profits rise at Shanks

INFRASTRUCTURE BY DAVID HELLIER



GLOBAL infrastructure group Balfour Beatty has decided to hold a beauty parade of advisers ahead of a likely change in its corporate brokers. The group’s current broking advisers are JP Morgan Cazenove and RBS, who have served the company for many years. Group chief executive Ian Tyler (pictured) is believed to feel that it is time to ring the changes, especially since the group has changed significantly in recent years, with almost one third of its revenues now coming from the US. The existing brokers will be pitching but they will be joined by a list of other major investment banks, including Bank of America Merrill Lynch and Citi. Brokerships often tend to be loss makers for the investment banks but they can often lead to key roles on major corporate finance transactions that bring in commissions. Balfour Beatty has been a FTSE 100 company but it is currently in the FTSE 250. “There have been lots of changes at the company in the recent past and I think management feel it is right to reconsider external advisers,” said one source. RBS has a host of big corporate brokerships, mainly through its ownership of Hoare Govett.

SUPPORT SERVICES BY HARRY BANKS

BRITISH waste management company Shanks yesterday posted a betterthan-expected six per cent rise in underlying pre-tax profit, and said it had seen an improvement in the market for its services in recent months. The company, which makes around half its sales in the Netherlands and recently won a contract with Unilever to recycle its waste there, said it was confident that good growth could be achieved in the current financial year. Overall trading was expected to be in line with its expectations, it said yesterday. “While market conditions remain challenging, our trading in the final quarter and early into the new financial year gives us encouragement that the market for our services is improving,” the company said in a statement. Shanks said it had faced the most challenging conditions in many years during the last 12 months. In the year to the end of March, group revenue rose five per cent to £717m and underlying profit before tax grew six per cent, or 10 per cent at constant currency rates, to £35.2m, boosted by cost cuts. The company raised its dividend by eight per cent to 3.25p a share.

Antofagasta’s earnings jump 30 per cent United Utilities tops views CHILEAN copper miner Antofagasta posted a 30 per cent rise in core earnings in the three months to March, as higher prices for the red metal and marginally higher volumes offset increased costs. Earnings before interest, tax, depreciation and amortisation (EBITDA) in the first quarter climbed to $811.9m

(£495.8m) from $623.4m a year ago. Revenue rose just over 29 per cent to $1.27bn. Copper prices have fallen back in recent weeks after hitting a record high of $10,190 in the first-quarter, but concerns over tight supply remain. The world’s largest mine, Chile’s Escondida, said on Wednesday that output slipped in the quarter on the back of maintenance and lower ore grades, adding to mounting evidence of a potential shortfall this year.

Antofagasta, the world’s 11th largest copper producer, said earlier this month that copper production for the first-quarter came in about 29,000 tonnes below initial targets. Antofagasta said it had concluded negotiations with the plant union at Los Pelambres for a new 44 month labour agreement. It struck a deal with the main union last November, agreeing a new 46 month labour agreement.





MINING BY HARRY BANKS

UTILITIES

UNITED Utilities, Britain’s largest listed water utility, yesterday reported a lower-than-expected drop in annual profits, after it was ordered by regulators to cut prices as part of a sector review. The company said revenue from regulated activities dropped four per cent, reflecting a similar four per cent decrease in prices. United

Utilities said underlying pre-tax profit fell 32 per cent to £329.2m, due primarily to lower revenue following the price review, as well as higher infrastructure renewals expenditure and property rates. However, this was still better than estimates of £311.8m, according to a poll. Shares in United Utilities closed at 617p yesterday, valuing the business at nearly £4.2bn.

News

CITYA.M. 27 MAY 2011

19

Upbeat profit outlook at Sony ANALYSIS l Sony ▲

TECHNOLOGY BY HARRY BANKS

Sony chief executive Sir Howard Stringer expects an 80bn yen net profit for the year

SONY’S forecast of its first annual net profit in four years is being viewed as optimistic, as the consumer electronics giant struggles with the aftermath of the March earthquake and a series of network security breaches. Havoc to supply chains and the physical damage caused by Japan’s

earthquake and tsunami forced Sony earlier this week to take a charge on tax credits that resulted in a $3.2bn (£2bn) net loss for the business year just ended, its biggest deficit since 1995 and the second worst on record. Sony yesterday predicted an 80bn yen net profit for the year that started 1 April, compared with analysts’ consensus of 105bn yen. It expects to make an operating

profit of 200bn yen this business year, reiterating guidance given earlier in the week, which helped its shares rise. “Looking at its forecast, it appears Sony is expecting a recovery in the latter half of the year, which is a bullish forecast, but there’s a lot of uncertainty and there is a risk it comes in below that expectation,” said Koji Takeuchi, senior economist at Mizuho Research Institute.

3000

¥

2800

2,239.00

26 May

2600 2400 2200 2000 1800 28 Feb

18 Mar

7 Apr

3 May

23 May

Tata Steel warns on rise in costs

Raiffeisen cheers as bad loans fall

INDUSTRIALS BY HARRY BANKS





INDIA’S Tata Steel yesterday warned rising raw material costs could hurt margins for a couple of quarters after posting its highest-ever annual net profit, bolstered by a surge in prices and demand in Asia’s third-largest economy. The world’s seventh largest steelmaker, whose European operations account for two-thirds of its global capacity of about 28m tonnes, said tepid demand in Europe was a cause for concern although it was seeing some positive turnaround signs. “The outlook for 2011 is positive on the back of faster recovery in Europe and strong growth in emerging markets,” said Tata Steel’s finance chief Koushik Chatterjee. “But the environment remains challenging because of higher raw material prices,” he said. Tata Steel said its consolidated net profit after taxes, minority interest and share of profit of associates jumped about 72 per cent to 41.78bn rupees (£573m) in its fiscal fourthquarter, up from 24.34bn a year earlier. Net sales for the year rose nearly 15 per cent to 1.17 trillion rupees. Last week, the company said it will cut about 1,500 jobs in Britain as part of a restructuring of its loss-making long products unit, and cut capacity at a plant in northern England.

AUSTRIAN lender Raiffeisen Bank International’s first-quarter net profit fell nearly a fifth amid a hit from taxes but still beat market expectations as provisions for bad loans fell by more than a third. Emerging Europe’s third-biggest lender by assets reiterated yesterday it expected its non-performing loan (NPL) ratio to peak later this year amid robust economic growth in the region. The ratio fell 37 basis points in the quarter to 8.6 per cent amid net releases in all segments except southeastern Europe. High margins have allowed Raiffeisen to remain profitable in emerging Europe, but investors are looking for a clear reversal of the baddebt cycle. RBI group profit fell 19.1 per cent to €270m (£232.8m), ahead of the average estimate of €256m in a poll of analysts. The company said provisions for bad loans fell 35.9 per cent to €208m, compared with a poll average of €278m. “Our profit before tax for the period increased by three per cent compared with the same period last year, above all because of satisfying developments in both net interest income and net fee and commission income,” chief executive Herbert Stepic said.

ANALYSIS l Tata Steel 640

R

FINANCIAL SERVICES BY HARRY BANKS

ANALYSIS l Raiffeisen 44

572.60

26 May

620

42

600

560

38

540

36 28 Feb

36.64

26 May

40

580

520



18 Mar

7 Apr

3 May

7 Mar 21 Mar 4 Apr 18 Apr 2 May 16 May

23 May

Car armour helps QinetiQ trump forecasts Ricoh to cut 10,000 jobs BRITISH defence technology company QinetiQ reported a better-than-expected full-year operating profit, driven by a strong performance from its global products unit, and said it would resume paying dividends. QinetiQ, which makes high-tech military equipment such as bomb disposal robots and sniper detectors, said

yesterday underlying operating profit rose 21 per cent to £145.4m in the year to the end of March. That was ahead of the average forecast of £140m. The group said revenue from the global products division grew by 66 per cent, boosted by demand for its QNET vehicle survivability product to support operations in Afghanistan. That helped it offset the impact of spending cuts in Britain and US.

QinetiQ, formerly Britain’s stateowned defence research agency, said it would resume paying dividends having slashed its debt during the year following a restructuring and cost-cutting measures which reduced operating costs by 10 per cent. “Our reshaping of the businesses, together with the reduction and refinancing of the debt, all contribute to a leaner and more agile group,” chief executive Leo Quinn said.





MINING BY HARRY BANKS

MANUFACTURING

COPIER and printer maker Ricoh will cut nearly 10 per cent of its staff to try to boost profits, a move that shows underperforming Japanese companies are stepping up efforts to compete with global rivals. Ricoh said yesterday the restructuring included slashing 10,000 jobs from its global workforce of 109,000, cutting unprofitable products and consolidat-

ing factories. “The earthquake has ended any lingering complacency at Japanese companies that have been behind the curve in restructuring and in M&A,” said Macquarie’s Peter Eadon-Clarke. Ricoh is targeting operating profit of 210bn yen (£1.5bn) in the financial year to March 2014, more than triple the 60bn yen it posted in the past year, ending in March, when sales fell four per cent.

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News

CITYA.M. 27 MAY 2011

CITY MOVES | WHO’S SWITCHING JOBS

Edited by Harriet Dennys

BEST OF THE BROKERS

in association with

ANALYSIS l C&C 3.7

JP Morgan Asset Management

RICS Europe

Professor Paul Sweeting has been appointed as European head of the Strategic Investment Advisory Group for JP Morgan Asset Management. Based in London, Sweeting will advise the firm’s European institutional clients on asset allocation, risk management and investment strategies. Sweeting previously held positions at Munich Reinsurance Company and Fidelity Investments International.

Robert Mayhew, a director in Jones Lang LaSalle’s valuation advisory team, has been appointed as a non-executive member of the RICS Europe World Regional Board for a second term.

Cordea Savills The property fund manager has appointed Arnold de Haan as the firm’s second non-executive director. De Haan currently runs his own advisory business Boishaen bv and is a director at the MeyerBergman property group.

Redington The independent consultancy has appointed Karen Heaven as vice president in the investment con-

sulting team. Prior to joining Redington, Karen spent eight years at Morgan Stanley.

Investec Stephen White has been appointed to the Investec growth & acquisition finance team to originate and execute deals with entrepreneurs, management teams and private equity firms. White joins from Barclays, where he helped establish a financial sponsors portfolio team.

Shanker Ramamurthy has been appointed as president, sales and trading for Thomson Reuters Markets, effective from 20 June. Ramamurthy joins from IBM, where he was general manager for the firm’s Global Banking and Financial Markets business. Joe Molnar has been appointed as senior vice president of engineering for the world’s largest app store. Molnar was previously partner architect for Microsoft’s interactive entertainment business division.

S

Greece in June was not possible, the Europeans were expected by the IMF to step in. Lloyds Banking Group, however, bucked the weaker sector trend, up 1.1 per cent as Virgin Money stepped up its bid interest in 600 retail branches which the British bank has been ordered to sell by regulators. By London’s close, US blue chips were down 0.4 per cent on the renewed Eurozone worries and as the US economy grew at a slowerthan-expected pace in the first-quarter, with GDP unrevised at up 1.8 per cent.

ANALYSIS l FTSE 5,880.99 26 May

6,100

6,000 5,900

THENEW YORK REPORT

U

S stocks rose for a second day yesterday in a choppy session, with technology and consumer discretionary stocks leading the way after upbeat earnings. Sellers crowded around the S&P 500’s 50-day moving average for a third day. The level, now just above 1,328, is gaining strength as technical resistance and could prevent any rebound in the benchmark.

7 Apr

3 May

23 May

55.04

26 May



56

28 Feb

18 Mar

7 Apr

ANALYSIS l Aveva 1,700

3 May

23 May

1,619.00

26 May

p

1,650 1,600

18 Mar

7 Apr

3 May

23 May

C&C Citi rates the drinks company a “hold” and has raised its target price to €3.85 (236p), from €3.50. The broker thinks C&C will struggle to grow its profit in 2012, with concerns about consumer sentiment in Ireland and Scotland in particular. Citi also thinks that cider’s young demographic means brand loyalty is less, and expects to see a slowdown in sales growth.

BAYER UBS has downgraded the healthcare business to “neutral” from “buy” and has lowered its target price by €2 to €60 (£52) after its recent share price gains. The broker thinks the current share price reflects the firm’s lower peer valuation, though 2012 could see sales momentum from trial data and regulatory decisions.

AVEVA Goldman Sachs rates the software group a conviction “buy” with a 12-month target price of £25. The broker expects that the announcement of a services partnership with Logica will leave the firm well placed to soar, with further potential for bolt-on acquisitions and contract tenders. Goldman thinks Aveva’s sales growth will outperform the sector next year.

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5,800 5,700 5,600 5,500 28 Feb

18 Mar

7 Apr

3 May

23 May

Choppy US trading gives gains The market’s ability to sustain an advance ebbed and flowed with developments in the foreignexchange market and fears over Europe’s sovereign debt crisis. “Currency strength right now is the major mover of equity and commodity markets,” said Michael Yoshikami, president and chief investment strategist at YCMNet Advisors. The broad S&P 500 was treading water throughout the morning after economic data failed to meet expectations, but once again found support once the euro stabilised against the US dollar. The Nasdaq outperformed other major indices after NetApp’s stock was buoyed by strong results. The

18 Mar

ANALYSIS l Bayer 60

28 Feb

Strong miners give FTSE a boost TRENGTH in heavyweight mining stocks helped Britain’s top share index edge higher yesterday, countering slippage by banks on Eurozone debt concerns. At the close, the FTSE 100 was up 10.9 points, or 0.2 per cent at 5,880.99, well below a morning spike above the psychologically important 5,900 level to 5,910.77. “The overall impression ... is that traders are highly anxious about the sovereign debt situation and, given that there is no quick fix for this situation, this anxiety could persist throughout the summer, thereby keeping equities in check for an extended period,” said Charles Stanley technical analyst Bill Macnamara. Miners provided the main prop

3.3

1,550

morganmckinley.com

for the FTSE 100 as investors returned to the sector on hopes of a reverse of the flow of funds “largely out of mining and other stocks” in the recent IPO of commodities trader Glencore. Antofagasta was a top blue chip gainer, up 3.5 per cent, as the Chilean copper miner posted a 30 per cent rise in quarterly core earnings, helped by higher prices. Tobacco stocks were also in demand, led by a 1.3 per cent rise in British American Tobacco which agreed to buy privately owned Productora Tabacalera de Colombia, the second largest cigarette company in Colombia, for $452m. Banks were the worst blue chip performers, with part-nationalised Royal Bank of Scotland shedding 1.1 per cent and global heavyweight HSBC down 0.4 per cent as worries over Eurozone sovereign debt failed to dissipate. Concerns about Greek fiscal woes were reignited after Eurogroup President Jean-Claude Juncker said if payment of the IMF tranche to

3.5

52

GetJar

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT

THELONDON REPORT

3.55

26 May



28 Feb

Thomson Reuters

To appear in CITYMOVES please email your career updates and pictures to [email protected]

+44 (0)20 7557 7245

21

tech-heavy index also got a boost from shares of Microsoft, up two per cent at $24.67 after a prominent investor said its chief executive should resign. The company’s board stood by its CEO. The Dow Jones industrial average edged up 8.10 points, or 0.07 per cent, to 12,402.76. The Standard & Poor’s 500 Index gained 5.22 points, or 0.40 per cent, to 1,325.69. The Nasdaq Composite Index rose 21.54 points, or 0.78 per cent, to 2,782.92. The best-performing S&P sector was consumer discretionary, helped by Tiffany, up 8.6 per cent at $76.04 after the luxury retailer reported its first-quarter results and raised its outlook.

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Lifestyle

24

CITYA.M. 27 MAY 2011

DIVE IN: swim chic Swimwear fashion perfect for hitting the beach in style, says Lucie Greene

Clare Rous & Kara Iland FOUNDERS OF ROUS ILAND MEMBERS’ BOUTIQUE, WWW.ROUSILAND.COM

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1 Ultra-flattering one piece, perfect for afternoon lounging. £38, www.monsoon.co.uk 2 A brave one – yes – but perfect for channelling the inner Bond Girl. £35, www.johnlewis.com 3 Calling all fashionistas. “We

5 Ooh la la! La Perla. £435, www.net-a-porter.com 6 This polka dot number has summer frolics written all over it. Oasis, £32, www.houseoffraser.co.uk 7 Check out the rainbow wonder. It’s like a little burst of sunshine. Rosa Cha, £198,

Men embracing beach fashion, with retro flair

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Are Handsome” is one of the hippest new labels to Net-aPorter. Check out this quirky horse print number. £195, www.net-a-porter.com 4 Hello fifties bombshell! This Norma Kamali number will set the cat among the pigeons. £340, www.net-a-porter.com

E may have moved beyond string vests, knotted handkerchief hats and union jack shorts, but when it comes to looking sharp on the beach, the average British male still compares poorly to his European neighbour, not to mention those from still warmer climes. That’s particularly the case with swimming trunks, a sartorial area in which good taste seems to be an entirely void notion. The sands may be shifting though, with a small – but growing – number of British companies attempting to address the national shortfall in beach style with classic, retro-cool design and the odd cool pattern. The latest is Chucs Mountain & Dive Shop, a project launched earlier this year by film producer, publicist and man-about-

ROYAL WEDDING GLAMOUR: ON A MODEST BUDGET

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ACK your bags ladies! Summer is nearly here yet again promises to be a heady mix of sun, sand sea and cocktails. Swimwear chic has been made even easier this time round. Labels have cooked up a host of swimwear ensembles, designed to suit every budget, shape and size and make you sizzle by the pool. Even better – most are available at the click of a button, so it’s even easier to keep strip-lit changing room horrors at bay. City A.M. rounded up the best of the bunch.

WHERE TO BUY:

Q&A

town Charles Finch, who decided if you can’t find the kind of togs to suit the sunning-it-in-St Tropez-and-Mustique lifestyle, you may as well make them yourself. And he had the good sense to harness some Savile Row talent in this endeavour, roping in former Kilgour designer Sophie Gordon to bring English sartorial elegance to beachwear and clothes for outdoorsy types. The range of men’s swimming trunks is very natty indeed, with simple prints and

www.net-a-porter.com 8 A floral beauty sure to excite all Cath Kidston fans. £32, www.cathkidston.co.uk 9 Capri had better watch out. Nothing will wow them more than this chic Missoni twopiece. Missoni, £265, www.matchesfashion.com

10 Budget busting, yes. Fabulous? Absolutely. Lanvin, £1,040 www.matchesfashion.com 11 Make like a celebrity, and rock this ultra-glam cut out one-piece. £292, Melissa Odabash, www.net-a-porter.com

Q.

I'm getting married in September. I absolutely love what Kate Middleton wore but I don't have a royal budget! What should I go for? A.CREATING the perfect wedding dress is all about the fabric – you want to look elegant and slightly regal but remain natural and comfortable so a fluid material with an element of structure should be your starting point to getting the look affordably. A slightly boned bodice with a stretchy fabric will give you Kate's tiny waist but you'll still be able to breathe (and perhaps eat a slice of wedding cake!). Getting the proportions right to make the most of your figure is critical. Kate's narrow middle was accentuated by the fitted bodice. The skirt had some body but kicked out from below her natural waist, almost on her hips so there was no bulk at her smallest point. If you are evenly proportioned a more fitted style with a fishtail kick is also sexy but stylish. Lace worked beautifully on Kate’s shoulders but can be dangerously expensive to emulate as unless you have the most exquisitely ornate handmade version it can go horribly doily-esque. A great cover-up like the bolero style jacket Kate had for her reception could be an alternative. (Under no circumstances should you attempt to use a pashmina or wrap – it will only look messy and detract from the dress.) The smartest thing Kate did was to remain true to her personal style and play on her best features – she emphasized her neat waist and kept her hair close to the way she feels best with, rather than overstylised. Follow her lead and make the most of your own. Find the right style without spending the earth by having it made by your local tailor based on images and fit directly to your body.

colours in classic, old-fashioned styles – buttoned waistes, zip flys, and side adjusters. “It’s the sort of thing you can wear on the beach, round the pool, for lunch, to play tennis in, and always look smart,” says Gordon.

Left, Capri swimshort by Chucs Mountain & Dive Shop, £145, www.chucsdiveshop.com Far left, Bulldog shorts by Orlebar Brown, £129 www.orlebarbrown.co.uk

PREPPY-CHIC Chucs joins Orlebar Brown, another British company, in creating classic, preppy-chic swimwear that feels both jetsetty and quintessentially English. Taking a different tack is FB Collection, a range inspired by the style and confidence of modern Brazil but set up by a couple of former City men, Harry Brantly and Max Leese. “This is all about the new Brazil, which is young, powerful and sophisticated,” says Brantly, a former wealth manager for UBS who was born in the South American country. FB Collection’s shorts are lightweight, cool and beautifully made – they’re designed for movement, whether that’s surfing or playing Brazilian beach

Below, Copacabana shorts by FB Collection, £135. www.fbcollection.com

tennis (FB Collection started out importing cool “frescobol” bats and balls). Whatever the activity, English style – with a bit of international glam mixed in – is the way to go on the beach this year. Timothy Barber

CITYA.M. 27 MAY2011

SORT OUT YOUR WINE CELLAR

25

SEE LIVING, PAGE 28

The Wolfpack goes mad in Bangkok Chaos reigns once again in the follow up to the smash hit bachelor party comedy of 2009 Film THE HANGOVER II Cert: 15

hhhII BRUISED, bloodied, blacked-out and stood high above a sweltering Bangkok, it’s the morning after the night before. Again. Following their 2009 antics in Vegas, the dysfunctional “Wolfpack” – Bradley Cooper, Ed Helms and Zach Galifianakis – is back. Three manboys, their sensible mate, and one wedding in Thailand. What could possibly go wrong? The storyline seems to have been channelled from the mind of a sweaty teenage boy who’s just nailed a crate of Panda Pops and six bags of Tangfastics. Car chases, speedboats, Russian thugs, guns, a CIA sting, strippers, mountains of cocaine, a handful of ladyboys and a crazy monk: it’s all there. And it doesn’t make a lick of sense, of course, which is unfortunate, but shards of brilliance do pierce their way through the muddy, scattergun plot. For instance, Mr Chow: the strutting, N-bomb dropping, uber-camp international criminal who’s just procured a monkey sporting denim Rolling Stones waistcoat and combat trousers. This silver-screen simian chainsmokes, peddles blow and takes a bullet to the sternum. Inevitably he’s adopted by the Wolfpack and, with Chow, steals the entire show. In short: wonky plot with some great lines. Do they get to the altar on time? Of course. Is it worth it? You make up your own mind. I’m not your mother! Tom Latter

Theatre ONE MAN, TWO GUVNORS National Theatre

hhhhh So monumentally funny is the National’s new show, with a performance of the most delicious and colossal buffoonery by James Corden at its centre, that one worries whether any fragile audience members might expire from laughing during its run. It’s a farce in the best British traditions of end-of-the-pier reviews, Carry On, Fawlty Towers and Morcambe & Wise,

Right: the Wolfpack takes on Bangkok in the Hangover II. Far right: James Corden in One Man, Two Guvnors. Below, Kara Tointon in Pygmalion

though it’s actually a reworking of a classic comedy by the Italian playwright Carlo Goldoni. Instead of Goldoni’s 18th century Venice we have Brighton in the Sixties, where Corden’s tubby likely lad Francis Henshall finds himself working as assistant for two different guvnors – one a London gangster, one a posh cad on the run from the police. Neither knows of the other’s existence, and Francis needs to keep it that way. In the balance, with a cast of characters including a pretentious actor, a nonsense-talking lawyer, a girl disguised as her dead twin brother, an on-stage skiffle band and a Caribbean crim with fond memories of Parkhurst, are two weddings, If it sounds rather lightweight for the National, it isn’t. The kaleidoscopic inventiveness of writer Richard Bean’s gaggery, the ingenious blending of the genre tropes of Goldoni’s commedia dell’arte with the best traditions of British slapstick, and the energy and artistry of the cast, make this show an absolute triumph. Timothy Barber

peculiar treatment in Philip Prowse’s production. Kara Tointon – of Eastenders and Strictly Come Dancing fame – is Eliza, mangling her cockney accent like Dick van Dyke in the first half, more affecting once tutored to well-mannered gracefulness in the second. Rupert Everett is glowering, charismatic and fluently witty as Higgins, but never vulnerable enough – a brutish egotist, but nothing more interesting.

It’s a stuttering show that never gets up a head of steam, especially in its leaden opening acts. Diana Rigg as Higgins’ mother and Peter Eyre as his mucker Colonel Pickering bring some lightness, much needed amid the show’s strangely gloomy lighting and dull set. To an extent, Bernard Shaw’s sparkling dialogue would be worth hearing even if Stephen Hawking were delivering it, but this is not a production for the ages. TB

HALF TERM IN LONDON | WHAT TO DO AND SEE DOCTOR WHO EXPERIENCE: Fans of the hit BBC series can now relive it in all its glory with this exhibition and “experience”. Visitors can time travel on an interactive video adventure with Doctor Who and are even given the opportunity to step in to the Tardis. There is also a show exhibition with memorabilia, original costumes and props dating back to the show’s first series in 1963. http://doctorwhoexperience.com

PYGMALION

Garrick Theatre

PENGUIN PANDEMONIUM To celebrate the arrival of a family of Gentoo penguins the Aquarium on London’s Southbank is launching an Ice Adventure display with quizzes, games, and interactive freezing touch pools (In addition to the show’s stars,

hhhII George Bernard Shaw’s most famous play, in which Henry Higgins educates flower girl Eliza Doolittle in the ways of lady-like speech (on which the musical My Fair Lady is based), receives a

BY LUCIE GREENE

the Gentoos themselves.) www.visitseaslife.com

NATURAL HISTORY MUSEUM: DINOSAUR Jurassic Park lands in London. Visitors to the Natural History Museum’s summer 2011 exhibition will be transported back 65 million years with of giant life-size animatronic dinosaurs and displays of extinct animals and plants. www.nhm.ac.uk

ROYAL BEASTS Discover the origins of London Zoo at the Tower of London’s new exhibition opening tomorrow – which housed animals for over 600 years in its Royal Menagerie for the entertainment of the court. With life-size sculptures and interactive displays – you can experience how everything from elephants and ostriches were kept, and even what they smelt like. www.hrp.org.uk/TowerofLondon

ALSO OUT THIS WEEK | FILM, MUSIC, GAMES

FILM

DVD

MUSIC

GAMES

APOCALYPSE NOW Re-release for Francis Ford Coppola’s spellbinding depiction of the Vietnam war.

LOVE AND OTHER DRUGS Saucy romantic comedy with Jake Gyllenhaal and Anne Hathaway.

LADY GAGA The third album, Born this Way, for the

DIRT 3 (X360, PS3, PC) The latest in the rally car

biggest pop star of the past decade.

simulation series.

ANGELS OF EVIL Elegant Italian crime saga about the rise and fall of a Milanese mobster.

TANGLED Cute animated Disney re-telling of the Rapunzel fairy tale.

THE PRODIGY The original firestarters release their

GLADIATOR BEGINS (PSP) Action role-playing game,

first ever live album, World’s on Fire.

a sequel to the PS2 game, Colosseum: Road to Rome.

LIFE, ABOVE ALL South African film exploring the

MORNING GLORY Middling workplace comedy with

harshness of life in modern Johannesburg.

Harrison Ford, Diane Keaton and Rachel McAdams.

THE FELICE BROTHERS Fourth album from the ramshackle country rockers, titled Celebration, Florida.

DUNGEONS AND DRAGONS: DAGGERDALE (XBOX LIVE, PS NETWORK, PC) Multiplayer fantasy hokum.

Lifestyle | TV& Games

SATELLITE & CABLE

TERRESTRIAL

26

BBC1

6pm BBC News 6.30pm BBC London News 7pm The One Show: BBC News 8pm EastEnders 8.30pm A Question of Sport 9pm CHOICE Have I Got News for You

9.30pm Outnumbered 10pm BBC News 10.25pm Regional News 10.35pm The Graham Norton Show 11.20pm The National Lottery Friday Night Draws 11.30pm FILM The Rainmaker 1997. 1.35am The One Show; Weatherview 2.40am Sign Zone: Monty Don’s Italian Gardens 3.40am Sign Zone: The Hairy Bikers: Mums Know Best 4.40am-6am BBC News

SKY SPORTS 1

BBC2

1.25am French Open Tennis 2.25am FILM The Haunted House of Horror 1969. 3.55am-6am Close 4.30pm Live French Open Tennis 7.45pm Game, Set and Mats 8.15pm French Open Tennis 10.15pm Horse Racing Time 10.45pm Cycling: Giro d’Italia 11.45pm-12.15am GP2 Series

ESPN

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7pm ESPN Press Pass 7.30pm ICC Cricket World Magazine 8pm Live French Top 14 Rugby Union 10pm ESPN MMA Live 10.45pm ESPN Press Pass Special 11.15pm Drambuie Pursuit 11.45pm UFC 12.45am ESPN Kicks: Extra 1am Live NBA Countdown 2am Live NBA Basketball 4.45am ESPN Kicks: Extra 5am-6am World Rally Championship

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CHANNEL4

ITV1

6pm Eggheads 6.30pm Great British Menu 7pm Windfarm Wars 8pm RHS Chelsea Flower Show 2011 9.30pm Paul Merton’s Birth of Hollywood 10.30pm Newsnight 11pm The Book Review Show; Weather 11.50pm Golf: The PGA Championship 12.20am Later with Jools Holland

BRITISH EUROSPORT

7pm Sky Sports News at Seven 7.30pm Live Nations Cup Football 10pm Champions League Final Preview 11pm Test Cricket 1am Nations Cup Football 2.30am Champions League Final Preview 3.30am Test Cricket 5.30am-6am Road to London

CITYA.M. 27 MAY 2011

7pm CSI: Crime Scene Investigation 8pm Bones 9pm Criminal Minds 10pm CSI: Miami 11pm Criminal Minds 12am CSI: Crime Scene Investigation 1.50am Ghost Whisperer 3.30am Charmed

6pm London Tonight 6.30pm ITV News 7pm Emmerdale 7.30pm Coronation Street 8pm Baboons with Bill Bailey 8.30pm Coronation Street 9pm CHOICE Paul O’Grady Live 10pm ITV News at Ten 10.30pm London News 10.35pm An Audience with Neil Diamond 11.35pm The Cube 12.30am The Zone; ITV News Headlines 2.30am FILM The Hitcher 1986. 4.10am-5.30am ITV Nightscreen 4.20am Nothing to Declare 5.10am-6am Maury

6pm Home and Away 6.25pm OK! TV 6.55pm 5 News at 7 7pm Cricket 8pm Eddie Stobart: Trucks and Trailers; 5 News at 9 9pm The Mentalist 10pm Law & Order 10.55pm CSI: Miami 11.50pm Rough Guide to Adventures 12.10am SuperCasino 4.05am Motorsport Mundial 4.30am Nick’s Quest 4.55am Rough Guide to Short Breaks 5.10am Wildlife SOS 5.35am6am House Doctor

12.10am My Name Is Earl 1.05am Supersize vs Superskinny 2am Embarrassing Teenage Bodies 2.55am Ugly Betty 3.35am Heartland 4.20am-6am Switched

BBC THREE

7pm Doctor Who 7.45pm Doctor Who Confidential 8pm Hotter Than My Daughter 8.30pm Snog, Marry, Avoid? 9pm Two Pints of Lager and a Packet of Crisps 9.30pm Lee Nelson’s Well Good Show 10pm EastEnders 10.30pm Young, Rich and Househunting 11pm Family Guy 11.50pm Ideal 12.20am Two Pints of Lager and a Packet of Crisps 12.50am Lee Nelson’s Well Good Show 1.20am Bizarre ER 1.50am Snog, Marry, Avoid? 2.20am Hotter Than My Daughter 2.50am Ideal 3.25am Doctor Who 4.10am Doctor Who Confidential 4.25am Young, Rich and Househunting 4.55am-5.25am Bizarre ER

HISTORY

7pm Heir Hunters 8pm Storage Wars 9pm American Pickers 10pm Ancient Aliens 11pm The True Story 1am How London Was Built 2am How Britain Was Built 3am Heir Hunters 4am The Universe 5am-6am Ax Men

DISCOVERY

8pm Britain’s Toughest Cops 9pm Whale Wars 10pm Gold Rush 11pm Through the Wormhole with Morgan Freeman 12am Bear Grylls 1am Deadliest Catch 2am Future Weapons 3am Hitler’s Gold 3.50am Stephen Hawking’s Universe 5.30am-6am Destroyed in Seconds

E4

7pm Hollyoaks 7.30pm Friends 9pm Supersize vs Superskinny 10pm Embarrassing Teenage Bodies 11.05pm Made in Chelsea

COFFEE BREAK

CHANNEL5

6pm The Simpsons 6.30pm Hollyoaks 7pm Channel 4 News 7.30pm Unreported World 7.55pm 4thought.tv 8pm A Place in the Sun: Home or Away 9pm The Million Pound Drop Live 10.25pm That Peter Kay Thing 10.55pm CHOICE PhoneShop 11.30pm Ricky Gervais 12am Music on 4: Jessie J Live in London 12.35am Mercury Prize Sessions 12.50am Album Chart Show 1.05am 4Play: The Pierces 1.20am Much Ado About a Minor Ting 1.50am Dish 2am Daddy 2.05am My Name Is Earl 2.55am The Dead Zone 3.35am Hill Street Blues 4.25am Wild Thing I Love You 5.25am-6.10am Countdown

DISCOVERY HOME & HEALTH

7pm Bringing Home Baby 8pm 10

SUDOKU

KAKURO

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 from 1 to 9 to solve this tricky Sudoku puzzle.



 

Fill the grid so that each block adds up to the total in the box above or to the left of it. You can only use the digits 1-9 and you must not use the same digit twice in a block. The same digit may occur more than once in a row or column, but it must be in a separate block.



 



  



  

   

LAST ISSUE’S SOLUTIONS QUICK CROSSWORD S A L E Y H R U L E O E D E N S G A F O R G A A C A N C G E T H E R

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L O V P E R E W S H P E L A M G O G

S S E R E D L Y N T O E N G U S

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1 8 3 1 2 4

WORDWHEEL The nine-letter word was MICROWAVE

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PAUL O’GRADY LIVE

ITV1, 9PM Veteran actress Joan Collins and X Factor 2009 runner-up Olly Murs join Paul in the studio. Johnny Vegas and Suranne Jones also drop in.

PHONESHOP

CHANNEL4, 10.55PM The arrival of area manager Razz Prince causes tension, and Lance tries to prove he is not boring. Guest starring Kayvan Novak (Facejacker).



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Using only the letters in the Wordwheel, you have ten minutes to find as many words as possible, none of which may be plurals, foreign words or proper nouns. Each word must be of three letters or more, all must contain the central letter and letters can only be used once in every word. There is at least one nine-letter word in the wheel.

SUDOKU

7.30pm The Middle 8pm The Simpsons 8.30pm Modern Family 9pm Raising Hope 9.30pm A League of Their Own 10.30pm Spartacus: Blood and Sand 11.35pm Brit Cops: Zero Tolerance 12.35am The Hangover 2 Special 12.45am Martina Cole: Girls in Gangs LA 1.45am Drug Wars: DEA 2.30am Cold Case 3.15am The 4400 4am Bite Size Brainiac 4.20am Secret Life of Suburbia 5.10am-6am Don’t Forget the Lyrics

11 14

WORDWHEEL

6 1

10

11 39

18

KAKURO 1 2 9 6 3 7 8 7 1 2 6 8 5 3 4 5 1 6 7 9 9 8 5 7 9 8 2 8 5 6 4 1 2 8 7 3 5 4 1 7 9 9 5

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9 6 7 8 4 9 2 1 9 1 4 4 3 2 5 9 6 8 7 1 3 2 6 2 3 8 5

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BBC1, 9PM Guest host Bill Bailey presides as Armando Iannucci and Jack Whitehall join regular team captains Ian Hislop and Paul Merton on the satirical quiz.

SKY1



27

6

HAVE I GOT NEWS FOR YOU

QUICK CROSSWORD

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

25

Years Younger: The Challenge 9pm 19 Kids and Counting 10pm Little People, Big World 11pm I’m Pregnant and a Hoarder 11.30pm I’m Pregnant and HIV Positive 12am 19 Kids and Counting 1am Little People, Big World 2am I’m Pregnant and a Hoarder 2.30am I’m Pregnant and HIV Positive 3am 10 Years Younger: The Challenge 4am 3 x A Baby 5am-6am Bringing Home Baby

TV PICK

        

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ACROSS

DOWN

1 Child’s magazine (5) 4 Type of bread used as a pocket for filling (5) 7 Belonging to you and me (3) 8 Seaman (3) 10 Magic word used in a spell or in conjuring (11) 11 Of a thing (3) 12 Sends from one place to another (9) 14 Unit of gravitational force (3) 16 Feeling or manifesting veneration (11) 18 Yoko ___, widow of John Lennon (3) 19 Add up (3) 20 Military blockade (5) 21 Construct (a building) (5)

1 Clique (often secret) that seeks power usually through intrigue (5) 2 Heath (4) 3 Focus one’s attention (11) 4 Have superior power and influence (11) 5 Choice morsel (6) 6 Tapestry used as a wall hanging (5) 9 Painting, sculpture, music, etc (4) 12 Adolescent (4) 13 Countermand (6) 14 One dozen dozen (5) 15 Treat with contemptuous disregard (5) 17 Eric ___, member of the Monty Python team (4)

Living

RICHARD BRANSON’S GAME RESERVE SEE TUESDAY’S TRAVEL SECTION FOR MORE

| London

Get the best deal on rent in London

OXFORD GARDENS

Move here if you like, but can’t afford... Notting Hill Agent: Virginia Skilbeck of Douglas and Gordon says: “Oxford Gardens is on Notting Hill’s doorstep with the same chilled out and trendy feel, access to shops bars and restaurants – just at a slightly lower price.” Average rent: £387 pw (one bed), £512 pw (two bed) Average council tax: £1,317.00 per household. Commute: The area is close to Ladbroke Grove tube station on the Hammersmith and City line, getting you to Liverpool Street in 30 minutes. Attractions: The comforts and attractions of Notting Hill are never far away, including the famous Portobello Road and its market. There are pockets of green space everywhere. Not to mention a fair few public and private tennis courts. Trivia: Trinny Woodall and Fern Cotton are rumoured to live in the area. David Cameron did too, you know, before he moved to Downing Street. Resident: Amy Dixon of Oxford Gardens says: “It’s quite like Notting Hill, just with a younger crowd because it’s more affordable. It’s sort of the sneaky way of getting into the borough of Kensington and Chelsea at lower cost. It’s really lovely. There’s plenty of green space and quirky little shops.”

Donata Huggins goes looking for the best places for young professionals to reside

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OUNG professionals struggling to get on the housing ladder is not news. Renting, particularly in London, is just a fact of life for many of us – at least while we are working on those deposits. The problem with renting, however, is that it is getting more and more expensive. Indeed, research out this week shows that average rents in London are up by 7.9 per cent since last year. And with inflation soaring, finding a good deal is becoming

HAMMERSMITH

more important. While renting within the walls of greater London will always be a trade-off between cost, commuting time and space, ever so often areas spring up offering the perfect combo. Shoreditch is the perfect example. It wasn’t that long ago that the area felt undiscovered and offered residents great value for money. With this aim in mind, we asked London’s letting experts for their verdict. Where were are their top “value for money” rental spots?

Move here if you like, but can’t afford... Fulham Agent: Alexandra Best-Shaw of Douglas and Gordon says: “Property in W6 is cheaper than that in the neighbouring postcodes, meaning young professionals can easily trade up and get more space for their money.” Average rent: £320 pw (one bed), £385 pw (two bed). Average council tax: £1,165.00 per household. Commute: With five tube lines and an overline service it’s really easy to get into the city. The area offers the Hammersmith and City, the District and Piccadilly lines. Attractions: The River Cafe on Thames Wharf and The Dove on the Upper Mall are the local’s favourite watering holes. Ravenscourt Park isn’t far away, nor is Brook Green for a bit of green space. Not to forget the Hammersmith Apollo for live comedy. Trivia: Lily Allen was born here. Resident: Paul Hinds of Loris Road says: “My commute is the envy of all my colleagues and with so many great pubs and restaurants, you have to remind yourself that there are other parts of London to go to.”

BETHNAL GREEN

Move here if you like, but can’t afford... Shoreditch Agent: Kye Wheatley of Keatens says: “The demographic of residents in Bethnal Green has completely changed in the last decade. In the 90s most buyers were East End locals. Now it attracts loads of City folk.” Average rent: £300 pw (one bed) £400 pw (two bed). Average council tax: £1,004.00 per household. Commute: The Central line gets you to Bank in 5 mins. Attractions: With an increasing number of good restaurants, Victoria Park and art galleries springing up in its old factory building, the area is more desirable than you would imagine. Trivia: Pete Doherty and Carl Barat of the Libertines used to live here and play in the Albion Rooms. Resident: Bryce Keane of Kenilworth Road says: “You always get the odd “East naysayer” but, to me, it’s got everything. With Brick Lane, Shoreditch and Dalston make for great nightlife. While funky cafes and boutiques and back streets full of fab boozers makes the area still feel fairly undiscovered.”

27

PIMLICO

Move here if you like, but can’t afford... Chelsea Agent: Adam Bishop of Hamptons International says: “Pimlico remains home to loads of MPs due to its proximity to Westminster. It offers relatively affordable prices compared to neighbouring Chelsea and Belgravia.” Average rent: £380 pw (one bed) £500 pw (two bed). Average council tax: £783.00 per household. Commute: Victoria tube station is on the District and Circle line that takes you straight into the City. Attractions: Ten minutes from Sloane square with Green Park and St. James Park, the area has an elegant and refined feel. For shopping there is House of Fraser on Victoria Street. Trivia: Thomas Cubbitt designed most of the area around 1840. Resident: Samantha Cook of Warwick Square says: "I love Pimlico. It's leafy, central – you can get anywhere from here quickly – but also feels totally safe. There are tons of great restaurants and bars. You've got everything and it's much cheaper than Belgravia."

THE CITY

Move here if you would like to... sleep more Agent: Eleanor Bleek of Hamptons says: “Renting in the City offers a fantastic lifestyle since there are so many excellent parts, restaurants and shops nearby.” Average rent: £375 pw (one bed), £520 pw (two bed) Average council tax: £960.00 per household. Commute: No more than a little stroll if you’re based in the City. While those housed in Canary Wharf can jump on the DLR and get there in 15 minutes. Attractions: Spitalfields market, the shopping centre One New Change and Shoreditch High Street makes for peaceful weekend ambling. The old City favourites of Hoxton grill, Redhook, Modern Pantry and A&O offer great evening dining. Trivia: The City has its very own police force. Resident: Ben Williams of Bishopsgate says: "There’s something very satisfying about knowing that you never have to get the tube to work again, especially in the summer when the tube is unbearable.”

28

Living | Focus On

UXBRIDGE, UB8

CITYA.M. 27 MAY 2011

INTERIORS

BY DONATA HUGGINS

KING’S ISLAND, WILLIAM AVENUE, DENHAM

Price: £657,995. Located on the former William King Flour Mill site, a town house in the soon-tobe completed King’s Island offers residents a private, gated community. The brand new neighbourhood will comprise 24 three and fourbedroom Mill conversions and new-build family houses and 127 one and two-bedroom conversions. Contact: Weston Homes on 0845 638 5010 or go to www.weston-homes.com

ROBINWOOD GROVE

Price: £1.3m This former coach house is set on two acres of land in a sought after area of Uxbridge. The property comprises of 5,000 sq ft. It has five bedrooms, a swimming pool, jacuzzi and sauna. Contact: Hamptons International on 01923 776291 or www.hamptons.co.uk

Andrew Dunning CREATIVE DIRECTOR AT DESIGN CONSULTANCY APD INTERIORS

I am moving to a smaller home and want to design the new rooms around my existing big furniture, can you give any advice?

Q. A.

NEED TO KNOW | AREA INSIGHT

OLD MILL ISLAND

Price: £675,000 This four-bedroom house is set within a Grade II listed former mill, set between the Frays River and the Grand Union Canal. It has been fully restored with a new integrated kitchen with granite worktops, luxury bathrooms and oak wood flooring throughout. Contact: Savills on 01923 824 225 or go to www.savills.co.uk

Q&A

Commuting to the City: Getting from Uxbridge station to Liverpool Street takes an hour on the Metropolitan line. Commuting to Canary Wharf also takes an hour on the Metropolitan line, changing at Finchley Road for the Jubilee line.

Education: While there isn’t a wide selection of good secondary schools in the Uxbridge area, the St. Helen’s independent school scores highly and the Bishop Ramsey Church of England state school doesn’t do badly either.

UXBRIDGE | PRICE ACTION Detached

Semi-Detached

Terraced

Flats

Uxbridge

£366,411

£276,525

£246,044

£177,324

London

£791,353

£430,258

£448,423

£340,317

Source: Savills

With many people downsizing to smaller homes – and as it often impractical to replace all your furniture – the challenge is to make your large furniture work in a smaller space. Although instinctively many people think “small house equals small furniture” a great look can easily be achieved by using a few large pieces of furniture if you carefully think about several key steps. The first question has to be, would the furniture actually fit into my new home? Then, if it does, ask if your furniture can serve two purposes in your new home. It will help to eliminate redundant pieces. One example of this could be your cherished dining table that you actually don’t use often but don’t want to part with. Consider using it to display a collection of books stacked in piles. They are therefore easily accessible and you don’t need a separate bookcase. The table also becomes a great focal point. With larger furniture, the space may be dominated by the colours of the furniture so it is often advisable to choose a neutral, pale tone decorating scheme. By carefully placing pieces. You should easily be able to use your existing furniture. Just remember that you might not be able to bring everything.

Specialising in property to rent in Chelsea, Belgravia, Kensington and Pimlico

Draker Lettings)PMCFJO1MBDF,FOTJOHUPO-POEPO488/4 UGNFUJNIBTTFMM!ESBLFSDPVLwww.draker.co.uk

the key to a luxury lifestyle for less With busy working days and a trend for late nights and early mornings, it pays to return home to a place where you can relax – a haven that is stylish and calming. To save time, money and effort furnishing your home and garden, those in the know are clicking on to ACHICA, the free-to-join online private members’ store that is fast becoming the name on any discerning lifestyle shopper’s lips. It is easy to get your hands on luxury brands for your home and garden at ACHICA and you will often find products to pamper yourself too, all up to 70% off and delivered conveniently to your door. There are fresh new promotions daily, featuring brands to suit both traditional and contemporary tastes, each lasting up to 72 hours. You will also find style tips, latest news and ideas and inspiration for your home and lifestyle. Visit ACHICA to find stunning furniture and lighting design classics from iconic names such as Anglepoise. Or, enjoy sumptuous 400

thread-count bed linen from respected brands such as Conran Fine Bedlinen. Keen chefs can choose from desirable cookware for the kitchen, from trusted brands such as Le Creuset. Log on today to find sophisticated Just Slate diningware, as well as modern, eye-catching Markslojd outdoor lighting. You can find luxury extras for yourself too – treat yourself to a pair of sunglasses from Karl Lagerfield or Gianfrance Ferreè, perfect for a weekend getaway. Smart shoppers who love their homes are turning to ACHICA for a new way to shop online, gaining the most value for their money. ACHICA’s buyers take time and care handpicking each individual item to ensure that only the most stylish designer products appear in its promotions – they do the hard work, so you don’t have to. Try out ACHICA today for free and find great additions for your home for less. Visit www.ACHICA.com.

.com

the members-only luxury lifestyle store

Living | The Knowledge

30

CITYA.M. 27 MAY 2011

Luxe cellars up property appeal Upmarket wine vaults and storage can be big selling points, says Lucie Greene

D

RAMATIC avant garde designs, subterranean moodlit spaces, luxurious tasting areas: Wine cellars have long way from the creaking descent to a basement wine rack. And, as the market for wine collecting continues to expand, properties that boast stunning examples are in pole position, say London agents. “I think with top tier properties it’s becoming more expected,” says Martin Bikhit, managing director at Key & Co, a West End property specialist. “For the right market it can also be a real selling point.” “For properties aimed at international clientele, particularly from continental Europe – who are very keen on wine – it can make quite a difference to a sale,” adds Robert Sturges, director at Chesterton Humberts in Fulham. Demand is certainly being felt at West Sussex based luxury cellar company Spiral Cellars Ltd. The company, which makes state of the art cellars for London and countryside properties, has seen profits leap four

times in the past six years to £4 m annual turnover. “Cellars have become one of the vital aspects on the tick list for luxury properties,” says Lucy Hargreaves, director at the company. “Lots of our clients come back to us after moving saying: ‘It’s the cellar that sold it.’” Hargreaves said average investment clients are making in premium cellars has also increased. “Three years ago clients would spend £15,000 on a great cellar. Now, the average they’re willing to spend has gone up to £20,000. We’ve also sold 11 of our premium cellars at £45,000 since autumn, which have specialist glass roofs.” Hargreaves said that wine cellars were now being incorporated at the planning stages of new premium buildings. “We’re being bought in at development stage. Lots of new build luxury properties are being designed with wine cellars incorporated.”

A luxury wine cellar by Spiral Cellars Ltd.

Candy & Candy’s swankiest new Knightsbridge addition One Hyde Park has definitely taken the wine collector into consideration. Each of the lav-

Picture: Courtesy

ish development’s apartments has its own assigned personal wine cellar, housed in a temperature-controlled room in the lower ground floor of the building. “It’s one of the aspirational services provided in the development,” says Martin Kemp,

creative director at the company. “Many owners of luxury homes are actually wine collectors and connoisseurs who have high value collections of vintage wines and champagnes which they like to display and look after. One bottle of vintage wine could be worth over £100,000 so it’s an investment that they want to protect.” The cellar trend seems to reflect the growing market for wine collecting. “Cellars used to be just for the fine wine connoisseurs, but now people are drinking more at home. More people with money are starting to collect wine. Wine cellars have become a lifestyle feature for homes,” says Hargreaves. With that many are using dramatic cellars as interior design statements. “Rather than being dark cave-like spaces in the basement, wine cellars are now being treated as an opportunity to create a spectacular space within the home and become a real feature of the property,” says Kemp. “Wine cellars have also become social hubs within properties – they can be walk in rooms with tables where the owners spend time sampling wines and playing canasta with friends – effectively they become a private den in which to socialise.” Do they add value to a property? “It depends on the size of property,” says Bikhit. “If you have limited square footage it can be detrimental. Living space is the priority. They’re great if you have lots of room though.” Bikhit said the value cellars add is more to the overall package appeal than a tangible increase. “They’re an additional selling point which can make the overall prospect of a house more attractive,” he said.

AT PAPERMILL PLACE WALTHAMSTOW, E17

Buy new at Vellum now!

Second hand is second best

Buy a stylish studio, 1 or 2 bedroom apartment at Vellum and avoid all the hassles and costs associated with buying an older property and enjoy: • Rapid connections to the West End, The City & Stratford: Black Horse Road tube station on the Victoria line less than 10 minutes walk • Kitchen appliances & all floor coverings included • Exemplary Customer Service with 24/7 support for the first 2 years

Prices from £147,500 Sales Centre & Show Homes open now - Call or see website for daily times

0800 883 8983 or (out-of-hours) 0800 032 0077 *Price correct at time of going to press. Photographs depict Vellum exterior.

www.vellumapartments.co.uk

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Stunning one bedroom duplex apartments available for immediate occupation. Prices from £495,000 a development by

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BEAUTIFUL HOMES, GLAMOROUS BOUTIQUES, COOL BARS AND GREAT TRANSPORT LINKS

CALL 01992 551777 OR VISIT WWW.BALLS-PARK.CO.UK FIRST TIME BUYERS WEEKEND – WE’LL PAY YOUR SEASON TICKET City & Country Group is hosting a special weekend aimed at firsttime buyers who will be able to view the spectacular show homes priced from £232,500 and talk to an independent financial advisor who will be on hand to give free impar tial advice. If you reserve an apar tment between 26th & 30th May, City & Country Group will pay for an annual season ticket between Her tford and London.* Opening hours that weekend: 26th May 10am–8pm, 28th–30th May 10am–5pm. Independent financial advisor available 26th May and 28th May.

WIN A WEEKEND IN HERTFORD Visit the sales suite at Balls Park between 26th May and 30th June for the chance to win a weekend break at the boutique Her tford House Hotel.* Unique 1 and 2 bedroom apartments at The Stables from £232,500 SHOW HOMES OPEN DAILY 10am to 5pm Balls Park, Hertford SG13 8FP *See www.cityandcountry.co.uk for terms and conditions

THE STABLES ~ THE COACH HOUSE ~ THE MANSION HOUSE

Punter

32

| Sport

FOOTBAL TRADER THE BEST CHAMPIONS LEAGUE FINAL BETS, WITH BEN CLEMINSON

Messi and Barca can give United more nightmares BARCELONA MANCHESTER UNITED TOMORROW – 7.45PM ITV 1

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HERE is no doubt that this current Barcelona side has the potential to be one of the best, if not the best, club teams of all time. They have just won their third straight La Liga title and their fifth in the last seven campaigns. Pep Guardiola has proven to be a formidable coach, both at a domestic and European level, with his charges looking for a third European Cup in six years here, and the style with which his side play has the purists purring. Lionel Messi has had another remarkable season and is undisputedly the best player in world football at the moment. He has scored an astonishing 52 goals across all competitions, including 11 in this year’s Champions League. His speed, skill and trickery are sublime, but his work rate is also second to none and Manchester United will have their work cut out to stop him. Barcelona are far from a one-man band though. Xavi and Andres Iniesta pull the strings in the middle of the park while Carles Puyol, Gerard Pique and Dani Alves are outstanding at the back. David Villa isn’t a bad partner for Messi, either, and the quality of this side as a whole is enough to give Sir Alex Ferguson sleepless nights. United ended their season on a high beating Blackpool 4-2 at Old Trafford, but their performances haven’t been impressive in the past couple of weeks. They struggled against Blackburn a fortnight ago and they looked in trouble against Blackpool when 2-1 down in the second half. They will obviously have to step up massively if they are to compete against Barca, but United should never be written off. The last time these two met was in the Champions League final in Rome in 2009 when Guardiola’s side comfortably beat United 2-0. The way his team capitulated

Messi has scored 52 goals for Barca this season Picture: GETTY that day will have been praying on Ferguson’s mind ever since and they will surely put up a better fight tomorrow. They also beat Barca the season before in the semi-final, so they know that they can do it. These are two worthy finalists, but Barcelona look a class above their rivals. The pace and accuracy of their passing is a joy to watch and the way they fight back when losing possession is magnificent. I find it remarkable that they are not odds-on to win in 90 minutes and the 21/20 available with William Hill must be taken. Bettorlogic.com analysis shows that there have been only two half-time draws in the last 12 Champions League finals, including none of the last 10 between teams of different countries. The outcome has been settled by the win HT / FT double result in nine of the last 17 finals and I expect that to continue. Back the Barca HT / FT victory at 5/2 on Betdaq. Paddy Power have come up with some fantastic money-back concessions in the past, but tomorrow’s has to be their best yet. They are refunding all losing first/last goalscorer, correct score and scorecast bets if Barca win in 90 minutes. That is an amazing offer and obviously any goalscorer and correct score

bets should be placed with the Irish firm. Messi hasn’t found the net since his brace at the Bernabeu in the semi-final first leg, but he comes alive on the big stage and is worth backing at 4/1 with Paddy Power. Although I expect Barcelona to win the match, I don’t think it will be easy and I can see United getting a goal. The most common result in recent final history is 2-1 and I will be taking the 15/2 on offer with Paddy Power for that scoreline. Sporting Index quote goals at 2.25-2.45 and although a buy is tempting, I’d rather opt for a speculative interest in Nemanja Vidic’s goal minutes at 6. It’s unlikely that United will break down Barca on the floor and their best chance of a goal could come from a set piece. There is no better header of the ball in United’s team than the Serbian and it would not be the biggest surprise to see him pop up with a goal.

POINTERS... Barcelona at 21/10 with William Hill Lionel Messi first goalscorer at 4/1 with Paddy Power Barcelona HT / FT at 5/2 on Betdaq Barcelona to win 2-1 at 15/2 with Paddy Power Buy Nemanja Vidic goal minutes at 6 with Sporting Index

IN-RUNNING TRADING HINTS

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eutrals would have struggled to handpick two better contestants for this season’s Champions League final. As kings of their respective castles in Spain and England, the meeting between Barcelona and Man United could have the makings of a classic and it will give in-play traders plenty to ponder. At Wembley, pretty much United’s second home, Sir Alex Ferguson’s men won’t give Barca the easy ride they allowed the Catalans in Rome two years ago. Mindful of going behind in just the ninth minute in the Stadio Olimpico, Fergie’s instructions will no doubt urge vigilance,

especially during the early stages. Betdaq punters should, therefore, consider backing 0-0 at around 17/2 in the correct score market before kick-off and look to lay off at shorter odds after around half an hour. In this season’s competition, Barca have scored just five of their 27 goals (18.5%) and United four of their total 18 (22.2%) in the first third of the game. The tendency to score more frequently in the later stages is such that, of the two clubs’ aggregate 45 goals this campaign, 23 have been netted after the 61st minute, meaning there’s every reason to back over 1.5 then

WHAT ARE YOU WAITING FOR? LOG-ON TO BETDAQ AND JOIN NOW TO PAY JUST 2.5% COMMISSION UNTIL 30 JUNE. WWW.BETDAQ.CO.UK 0870 178 1221

over 2.5 goals at steadily increasing prices. Any big hitters looking to wager on Barca if they take the lead should be wary of lumping on Pep Guardiola’s outfit at very short prices. If Barca do have any frailties then they are exposed outside the Nou Camp and their last London visit should serve as a cautionary tale. They were trading at 2/13 on Betdaq in-running before surrendering their 1-0 advantage late on against Arsenal. Including that match at The Emirates, they have taken the lead and failed to win in 16% of their Champions League and La Liga away outings this term.

Punter

33

INVESTEC DERBY

| Sport

1 mile 4 furlongs, Epsom, Saturday 4th June, Live on BBC TV.

11/8 5 7 7 12 16 20 25

RACING TRADER BILL ESDAILE, OUR RACING EXPERT, REPORTS FROM YESTERDAY’S ‘BREAKFAST WITH THE STARS’ EVENT AT EPSOM DOWNS

Epsom’s French fancy

25 33 33 33 40 40 50 50

Masked Marvel Master Of Hounds Treasure Beach Vadamar Memphis Tennessee Nathaniel Apache Genius Beast

Each way one-quarter the odds a place 1, 2, 3. Others on request.

W

ITH just over a week to go until the Investec Derby, racing’s good, bad and ugly gathered on Epsom Downs yesterday morning for the racecourse’s annual ‘Breakfast with the Stars’. The event offers up the opportunity for any horse entered in the world’s most famous race to exercise on the track and sample its undulations, twists and turns before the big day. Only two of next week’s runners opted to strut their stuff in front of the eyes and cameras of the racing press and Ed Dunlop’s Native Khan was the first to appear in the hands of Kieren Fallon, right in the middle of breakfast! He was led by a moderate handicapper, Satwa Laird, and the pair seemed to crawl round Tattenham Corner. As they entered the straight, it became clear they were going slower than a crawl and Native Khan eased past his stablemate in slow motion with the minimum of fuss. Connections seemed delighted with him, although he’ll need to go a hell of a lot quicker tomorrow week if he is to trouble the leading contenders. William Hill seemed content to leave his price unchanged at 12/1. Ed Dunlop still seems convinced that Fallon will be on board come the day and told Clare Balding that he had received “as firm a commitment to ride as Mr Fallon ever gives.” Aidan O’Brien may well have been granted a similar commitment as he seemed to indicate 40 minutes later, via telephone link-up from Ballydoyle, that Fallon will partner his Recital. The former champion certainly has a tricky decision to make over the next few days. Almost as soon as Native Khan had completed his workout, if you can call it that, a helicopter appeared from out of an overcast sky and landed in the centre of the course. The five-foot something man that stepped out from the gloom was Andre Fabre, 22-times French Champion trainer and arguably one of the greatest trainers ever to step foot on Epsom’s hallowed turf. However, the one race missing from his CV is the Investec Derby – he has only a fifth place finish to show from nine attempts over the last 30 years. That said, in Pour Moi he has a very

Carlton House Pour Moi Recital Seville Native Khan Roderic O’Connor Ocean War Casamento

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Ferdoos to give in-form Varian another big win

I

Pour Moi working at Epsom yesterday

lightly-raced, but hugely talented colt, who could well change all that. He worked alongside a stablemate, in the hands of jockey Mickael Barzalona, and visibly travelled with greater gusto than Native Khan. He hadn’t impressed in the preliminaries, having appeared in front of the stands layered in sweat, but quickened up at the end of the gallop in eye-catching fashion. William Hill responded straight away by cutting his odds from 7/1 into 6/1 clear second favourite. Andre Fabre declared to everyone afterwards that he was “in love” with the horse

and he definitely represented his best ever chance of winning the race. Suddenly, a serious challenger to Carlton House has emerged from across the Channel. Fabre joked that he does not mind being unpopular if winning the Derby means beating the Queen’s horse. On the evidence of what we witnessed over our croissants, that’s no joke and a very real possibility. Visit www.theroadtothederby.co.uk this week to see some fantastic videos of the key contenders in action, as well as all the information you will need for next week’s festival.

T’S very much the calm before the storm this weekend with the Investec Derby Festival only seven days away. However, Haydock hosts a decent card tomorrow and let’s hope we can follow up after last week’s headline tip Sole Power (12/1) won the Temple Stakes well. Roger Varian has made an excellent start to his training career since taking over from Michael Jarvis. He has already registered big race wins with Eton Forever and Pekan Star and I expect him to be in the winner’s enclosure again tomorrow with FERDOOS in the 3.05pm. She won her first two career starts easily last season before going down by a nose to tomorrow’s rival Polly’s Mark at Ascot in September. She has the potential to be a top class four-year-old and clearly goes well fresh. The Group 3 Timeform Jury Stakes (3.35pm) is surely at the mercy of REGAL PARADE, especially if the rain comes. He’s a genuine Group 1 performer and ran really well against Delegator at York last time. He doesn’t have to concede any weight to his rivals and the only worry would be quick ground. The main danger appears to be Godolphin’s Shakespearean who has won first time up for the last two seasons, while High Standing shouldn’t be discounted in first-time blinkers. John Gosden continues in flying form and his ZUIDER ZEE can land the opener at Haydock (2.05pm). He will have come on for his decent seasonal reappearance at Ascot and has always looked as though he’d relish the step up to two miles. Stable jockey William Buick is riding at Newmarket tomorrow and you can be pretty sure that’s because of BUTHELEZI. I was a big fan of Gosden’s inmate last season and he was hugely impressive over course and distance last time. He should see off this lot.

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Sport

34

SPORT | IN BRIEF Bolt pips Powell on his return ATHLETICS: World 100m record holder Usain Bolt capped his return to the track after a 10-month absence with the narrowest of victories over Asafa Powel at the Diamond League meeting in Rome. Bolt trailed until the last five metres and finished in a time of 9.91 seconds.

PREMIERSHIP FINAL PREVIEW: LEICESTER V SARACENS, TOMORROW 3PM, ESPN

Final promises duel of No10s

Hamilton angered by Toro Rosso FORMULA ONE: McLaren’s Lewis Hamilton has told stewards in Monaco to keep an eye on Toro Rosso’s drivers, accusing them of holding him up in Spain last week. Hamilton said: “They [Toro Rosso] let Vettel past and then they held me up.”

ECB to launch county review CRICKET: The England and Wales Cricket Board has appointed the former ICC and ECB Chairman David Morgan to conduct an extensive review into the business of domestic cricket.

Results :I@:B<K =@IJKEGFN<IK<JKD8K:? <e^cXe[mJi`CXebX ;Xp(f],

email [email protected]

KYRAN BRACKEN

T

OMORROW’S match is a worthy final that brings together England’s two best sides, but also promises to be an intriguing battle of styles and a fascinating contest between the fly-halves. Saracens might feel it’s an opportunity to avenge their loss in last year’s final. Psychologically Leicester will be helped by the knowledge they can win the big games. They have won so many finals, won in the last moments last year, and finished top this year. But then Saracens have won the last two meetings and also know how to win tight games. Personally I think there’s nothing between them. It will be very interesting to see whose style prevails. Saracens have done very well concentrating on a strong defence. Leicester have traditionally been very good in that department but maybe their focus has shifted a bit more to attack as the game’s laws have changed. I’m looking forward to seeing how well the packs go against each other. Leicester have always been successful because they concentrate on a very powerful pack and have

Owen Farrell has emerged as a key man for Saracens

Toby Flood is England’s first choice fly-half

Picture: ACTION IMAGES

Picture: ACTION IMAGES strength in depth. Saracens are extremely well rehearsed, well coached, and know what each other are doing, while Matt Stevens has come on leaps and bounds. I think the biggest contest will be at No10: England’s fly-half, Toby Flood, against a youngster coming through in Owen Farrell. In my view, whoever controls the game best will win. Farrell has shown tremendous vision to pin teams back and allow Saracens to defend very well. Toby Flood on the other hand has a bit more attacking ability but his kicking is good as well. Owen’s going to have to kick his

goals this time. He struggled against Gloucester in the semi-final but will need to be on song for Saracens to have a chance. Toby Flood has proven he’s reliable under pressure. I don’t expect anything like the drama of the Heineken Cup final, but I wouldn’t be surprised if last year’s tight final was a forerunner for this one. I can see it being drawn at the end of extra-time and going down to a place-kicking bonanza. Kyran Bracken was speaking courtesy of GamePlan Solutions: Managing high profile and popular sport stars; Speakers, Leaders, Motivators, Ambassadors www.gameplansolutions.co.uk

Borthwick revels in Sarries success FORMER England captan Steve Borthwick claims his success with Saracens this season has helped ease the pain of his international exile. The 31-year-old is no longer part of Martin Johnson’s England set-up but has played a key role in hauling the London club into tomorrow’s Premiership final. He said: “Every player wants international recognition but I don’t think about England when I play for my club.”

Westwood stunned by Donald’s Wentworth wizardry ▲

:8I;@==1Ji`CXebX_Xm\jZfi\[(**]fiknfn`Zb\kjX^X`ejk <e^cXe[ JI@C8EB81=`ijk@eej EGXiXeXm`kXeXefkflk%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%,/ K;`cj_XeYJnXee%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%,' BJXe^XbbXiXZGi`fiY8e[\ijfe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(( ;AXpXnXi[\e\efkflk%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%+ 9,cY,%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(' KfkXc)nbkj%#+/fm\ij %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(** =Xcc10*#((+% 9fnc`e^18e[\ijfe(,$)$+)$(#9ifX[(*$($+,$'#Ki\dc\kk ()$,$)+$'#JnXee/$)$()$(% Ldg`i\j18;Xi9;fZkifm\% CM:FLEKP:?J?@GÇ;`m`j`feFe\K_\Ifj\9fnc 2 CXeZXj_`i\*)/BI9ifne0-#;>:fib+$./ Xe[/$'m ?Xdgj_`i\(**BN?f^^.$)/ Xe[)'(98:?fn\cc.(# BN?f^^+$*( %CXeZXj_`i\))gkj Y\Xk?Xdgj_`i\*gkj  Yp('n`Zb\kj%KXlekfe 2Pfibj_`i\*,/AD9X`ijkfn(*-# >J9XccXeZ\-( Xe[)+0$--*%)fm\ij A<Iffk-.#8N >Xc\,' %mJfd\ij\k+,)D<Ki\jZfk_`Zb(/0#8M Jlgg`X_0,#A:?`c[i\k_/.#8LIXj_`[+$('' %<[^YXjkfe 2 ;li_Xd-')$-[\Z%NIJd`k_(.0#;D9\eb\ejk\`e()/#@ ;9cXZbn\cc00#GDljkXi[.(ef mNXin`Zbj_`i\(/-M :_fgiX.0#98Jkfb\j+$+/ Xe[*,$*(+%'fm\ij %;`m`j`fe Knf:_\cdj]fi[ 2D`[[c\j\o*/,J;IfYjfe(+-#A8 J`dgjfe-,#AND;Xcipdgc\,)#>IEXg`\i,$,- Xe[ *0$(('%'fm\ij m<jj\o)0(F8J_X_0-#AJ=fjk\i,/#K ADlikX^_,$/) %:Xek\iYlip 2;\iYpj_`i\+-'NC DX[j\e(+'#LKB_XnXaX(*,#:=?l^_\j,.#J8J_Xn ,$((/ Xe[/,$()(%'fm\ij mB\ek*,)DmXeAXXijm\c[ 0,#>FAfe\j,0#J8Efik_\Xjk,'#K;>if\e\nXc[+$-+ % Efik_Xdgkfe 2C\`Z\jk\ij_`i\*(*89DZ;feXc[(-+#A8 9iffbj,$/' Xe[,)$'(/%'fm\ij mEfik_Xdgkfej_`i\ *()8>NXb\cp0/ %EfgcXpK_lij[Xp[l\kfiX`e%K_\B`X FmXc 2>cXdfi^Xe+(08EG\k\ij\e)('#DAGfn\cc00  Xe[+-$'()%+fm\ij mJlii\p)/+JD;Xm`\j..#DI IXdgiXbXj_-.#:G8j_c`e^+$+. %

RUGBY UNION COMMENT

GOLF BY JAMES GOLDMAN

WORLD No1 Lee Westwood joked his compatriot Luke Donald should be drug tested after posting a remarkable 64 in tough conditions on the first day of the BMW PGA

Championship at Wentworth. Donald finished on seven under, two shots clear of Italian teenager Matteo Manassero and Sweden’s Johan Edfors. Westwood finished on level par after struggling with his putter and

on discovering Donald’s progress, he quipped: “They should drug test Luke after a 64 – I can’t quite figure that one out.” Colin Montgomerie has revealed he was sacked by his caddie at the start of this week because his bagman

wanted to work with “somebody better”. The former European Ryder Cup captain finished on two under and said: “I had a phone call from my caddie saying he had decided to go with somebody better. The search is on. All applicants are welcome.”

35

Mixed fortunes for Brit stars ▲

TENNIS BY FRANK DALLERES

BRITISH No1 Andy Murray overcame gusty conditions to book his place in the third round of the French Open, but compatriots Heather Watson and Elena Baltacha were blown away at Roland Garros. Murray laboured at times in a 7-6 (7-3), 6-4, 7-5 victory over Simone Bolelli, and while the Italian created no shortage of hazards, the Scot also

had to do battle with the elements. “The wind was swirling the whole time so sometimes you’d throw the ball up to serve and you’d feel like the wind was blowing in towards you, then it would change and the ball blows forward,” he said. Watson, 19, who came through the qualifiers, proved unable to continue her fairytale run in Paris, losing 6-1, 6-3 to 16th seed Kaia Kanepi. Baltacha, the top ranked British woman, fared marginally better

against American Vania King but also waved goodbye to Paris with a 4-6, 6-1, 6-4 defeat. In a huge shock second seed Kim Clijsters crashed out to unseeded 20year-old Arantxa Rus, ending her hopes of winning a third successive grand slam. Rus, of Holland, won 11 of the last 12 games to seal the biggest win of her career. In the men’s draw, defending champion Rafael Nadal again looked shaky as he overcame fellow Spaniard Pablo Andujar.

Watson’s run ended against Kaia Kanepri

Sri Lanka and the weather stall England ENGLAND bowler James Anderson denied he and the rest of captain Andrews Strauss’ attack are undercooked after suffering a largely frustrating first day of the international summer. Rain delayed the start of play in Cardiff until 3.30pm after which England were thwarted in their attempts to make an early breakthrough by Sri Lanka’s opening pair of Tillakaratne Dilshan and Tharanga Paranavitan. Dilshan, the new Sri Lanka captain, made 50 in a first-wicket stand of 93 before playing on to Graeme Swann, while Anderson grabbed the prized scalp of Kumar Sangakkara in controversial circumstances shortly before the close as the tourists reached 133 for two, with Paranavitan unbeaten on 58. Afterwards, Anderson refuted any

suggestion that the England’s bowlers were undercooked through a lack of cricket in the early part of the summer. “I was pretty overcooked in the winter. We had a needed break,” he said. “All the guys feel strong and ready to go. I thought we bowled well today. “Hopefully it’ll swing again tomorrow and we can get a few more nicks. They’ve got a strong top six and we’ve got to work hard to make inroads into that and hopefully if we can get a couple of wickets early tomorrow we can get them out cheaply.” The day was touched by controversy when Sangakkara was given out caught behind when England used the decision review system, despite replays not seeming entirely conclusive. Anderson said: “It was a bit of a strange one because the wind was going across the ground so I didn’t hear anything but the slips were convinced he’d nicked it.”

Hammam implicates rival Blatter ▲



CRICKET BY JAMES GOLDMAN

Picture: ACTION IMAGES

FOOTBALL BY JAMES GOLDMAN

Anderson took the wicket of Kumar Sangakkara on a largely frustrating day Picture: GETTY

FIFA presidential candidate Mohamed Bin Hammam has demanded that current chief Sepp Blatter be included in the investigation by the world governing body’s ethics committee. Bin Hammam, who along with Fifa vice-president Jack Warner has been charged with bribery, claims Blatter has also been named in evidence submitted to the ethics committee ahead of a hearing on Sunday. The 62-year-old, who is standing against Blatter in next week’s presidential election, said in a statement: “Mohamed Bin Hammam, member of the executive committee of Fifa, was surprised by accusations of bribery. He rejects these accusations and confirms that they are without substance. “The accusations also contain statements according to which Mr Blatter, the incumbent Fifa president, was informed of, but did not oppose, payments allegedly made to members of the Caribbean Football Union.”

36

Sport | Football | Champions League Final

CITYA.M. 27 MAY 2011

Messi darts about like boxer trying to find a soft spot Former Barcelona and England manager gives his Champions League final verdict

FOOTBALL COMMENT

TERRY VENABLES

B

ARCELONA are slight favourites and I think that’s fair. Saying that, however, I think everything’s getting stronger and stronger for Manchester United. People have said that they’re not as good as they were or haven’t been at their best. My first reaction was: Crikey, if they’re not then the opposition are in for trouble because they’re still winning. This is a team that has got stronger, and people have come through so well. Nani once looked a player who was OK and an imitation of Ronaldo, but now he’s a truly class player in his own right. Antonio Valencia has been exceptional. He’s been a great find. And then they’ve got Javier Hernandez. He has come in and taken his chance with both hands. It’s going to be fascinating because it’s so close. If there is a team that can beat Barcelona, you’d think it would be United. I think as the game’s getting closer, people are increasingly leaning towards them on this. You know what Barcelona are going to do, but you don’t know what United are going to do, so they’ve got a lot of options. That will be what Sir Alex Ferguson is looking at now. Obviously what comes to mind is: how do you stop Messi? Because Messi will go on the right wing, he’ll try the left,

then he’ll go across in the middle. He’s like a boxer trying to find a soft spot. There’s several options Ferguson can come up with, but he mustn’t lose what his own team’s got, because it’s too easy to say ‘I’ve got to do that, that and that’. The surprise might be that he just does what he normally does. I think most battles are won by surprising the opposition – something I’ve always enjoyed doing. Terry Venables is a 188BET ambassador. The In-Play betting specialists are offering great value odds on a host of markets for the Champions League Final. To check them out and for a free £25 bet go to www.188promo.com/terry

Guilty City star Toure out until September for failing drug test ▲

FOOTBALL

MANCHESTER CITY defender Kolo Toure has revealed the heartache he suffered at missing out on the climax of the club’s historic campaign after being handed a six-month ban for using a banned substance earlier this season. The suspension is back-dated to 2 March, when Toure’s provisional ban began, and ends on 2 September meaning the Ivory Coast international is likely to miss at least the first four games of the new season which starts on 13 August. “This has been a difficult period, and I am sad to have missed the team’s triumph of securing Champions League football and the FA Cup,” Toure said. “But I am relieved that I will be able to return

to football in September and thank the FA’s commission for their understanding.” The decision caps a troubled year for the 30-year-old who lost the club captaincy to Carlos Tevez in August before being tested at the Manchester derby in February, when he was an unused substitute. The former Arsenal star was suspended on 3 March after his A-sample tested positive for “a specified substance”. An independent regulatory commission headed up by Christopher Quinlan QC, which had the power to issue a ban of up to two years, was satisfied and took the sympathetic view that Toure did not intend to enhance sporting performance or to mask the use of a performanceenhancing substance.

Manchester United captain Nemanja Vidic Pic: ACTION IMAGES

Sport | Football | Champions League Final

CITYA.M. 27 MAY 2011

37

Barca aren’t only ones with stars Champions League winner with Man Utd says Catalans aren’t in league of their own

I

FOOTBALL COMMENT

ANDREW COLE

HAVE to laugh when I hear people dismissing this Manchester United team as the weakest title-winning group Sir Alex Ferguson has built. There is no such thing as weak Premier League champions and to my mind this is the most underrated side of the Ferguson era. Barcelona are being billed as unbeatable in certain places but the reality is these two teams are evenly matched. There might be no 50-goal-aseason striker in the Old Trafford

the Treble winners of 1999 – and it all stems from the manager. It’s one of Fergie’s great skills to be able to keep a squad of quality players happy. Look at the situation with Dimitar Berbatov – If I was him I’d be absolutely devastated. He’s just ended the season as the Premier League’s top scorer and yet it looks like he’ll be watching the final from the sidelines. Andrew Cole was speaking on behalf of Barclays the title sponsor of the Barclays Premier League. Every 90 minutes throughout the season Barclays is offering fans the chance to win free tickets to Barclays Premier League matches by going to a Barclays ATM and requesting a receipt or by visiting www.barclaysticketoffice.com.

ranks right now, but that defensive unit, collectively and individually, can’t be bettered anywhere in Europe. I wouldn’t take anyone else over Nemanja Vidic and Rio Ferdinand, Patrice Evra is the best left-back around and, like Peter Schmeichel in the side I played for, Edwin van der Sar is the sort of match-winning goalkeeper you need to be able to compete for the biggest prizes. When you look at those names – and add in Wayne Rooney – United have as many world stars as Barcelona. Regardless of individual qualities, however, the great strength I see in this United side is their belief and unity – it’s extremely reminiscent of

United strike duo are the best Sir Alex has ever had Ex-England defender thinks Ferguson’s men have been written off too quickly

FOOTBALL COMMENT

MARTIN KEOWN

M

ANCHESTER United’s chances of winning the final are mixed, because Barcelona are the best team in Europe, and may be about to prove that. However, it’s at Wembley and there are a few things pulling it back towards them like a magnet. Some people have been too critical of this team, but United have grown and improved throughout the season. Wayne Rooney and Javier Hernandez are a sparkling forward partnership and as good as anything they have ever had. I like Hernandez’s movement – he’s very

clever and a very good foil for Rooney. In central defence Vidic and Ferdinand are strong. Maybe Ferdinand is not quite as sprightly as he once was but he’s very assured and very polished in his play. Evra’s as good as any left-back they’ve ever had, and so is Edwin van der Sar in goal. United will have to find a solution in midfield because Barca boss the ball. So you can well imagine the likes of Park having to put a real shift in. I think it will be the more unfamiliar players we see do well on this occasion. Getting Barcelona in a one-off game is probably the only way to beat them. You don’t want to play them over two legs. If there’s no real rhythm to the game, as often happens in a final, United may just have enough to win it. Martin Keown is an ambassador for grassroots youth football competition the Tesco Cup, for more information go to www.tesco.com/football

Fulham’s fair play is rewarded with Europa League place and June start ▲

FOOTBALL

FULHAM will be back in action at the end of next month after it was confirmed they will compete in the Europa League next season after securing a place via the Fair Play League. The first qualifying round takes place on 30 June just six weeks before the commencement of the 2011/12 Premier League season. Fulham manager Mark Hughes said: “We’ve got a very early start and we will have to come back on some-

thing like 23 June for a match on 30 June. “We’ll have three to four weeks break maximum so it’s difficult to plan for. A huge amount of thought needs to go into the guys that need the rest and making sure we have the right quality to move through the competition in the early rounds.” The 2010 losing Europa League finalists, who ended the Premier League season in eighth position, qualified at the expense of relegated Blackpool by 0.01 points.

38

Sport | Football | Champions League Final

CITYA.M. 27 MAY 2011

Alex who? Messi not interested in United Barcelona’s 52-goal talisman confesses his ignorance of tomorrow’s opponents in eagerly anticipated Champions League final at Wembley BARCELONA MANCHESTER UTD ▲

FOOTBALL BY FRANK DALLERES

BARCELONA superstar Lionel Messi admits he knows virtually nothing about Champions League final opponents Manchester United. The Argentinian genius says he pays little attention to other teams and does not plan to study United for chinks in their armour before tomorrow’s final at Wembley. “To be honest I don’t watch much football at all,” said Messi. “But I know that they are a very strong side and well deserved champi-

ons of a very difficult league. That says it all. “I’m not sure where their weaknesses are because they are a very strong side, very physical and extremely efficient in all their lines. I’m one of those players who doesn’t look too much at the opposition and concentrates about what we need to do. This is a one-off game – but we have to think about us.” Messi was part of the side who swept United aside 2-0 in the 2009 final and, chillingly for Sir Alex Ferguson, believes Barca’s largely unchanged team are, if anything, even better than before. “I would like to think that some of us are just a bit more experienced this time round,” he added.

A triumph on home soil for United would bring a third Champions League winners’ medal for Ferguson (left), equalling the record held by former Liverpool manager Bob Paisley. Both United and Barca are looking to complete domestic league and European Cup Doubles.

Final could move back to midweek EUROPEAN chiefs are thought to be considering switching the Champions League final back to Wednesday. Viewing figures for last year’s match, the first to be held on a Saturday, were not as high as hoped and a significant drop from the previous final. It is understood the matter has been discussed within the FA. A Uefa spokesperson told City A.M. there were currently no plans to revert. Rooney will be expected to carry the fight for United as they seek to complete a Double.

Sport | Football | Champions League Final

CITYA.M. 27 MAY 2011

39

Rooney’s mojo is MORE SPORT EXPERT match for Messi FINAL FOOTBALL COMMENT

TREVOR STEVEN

I

Messi will look to exploit space wherever he finds it.

Pictures: GETTY, ACTION IMAGES

T’S the final almost every fan would have wanted: two champions of their respective leagues who have without doubt played the best football in Europe this season. More than that, it throws together two of the most brilliantly unpredictable players on the planet and places them in direct opposition. I can’t wait. Similarities abound between Wayne Rooney and Lionel Messi. Both are unarguably the key men for their teams: Barcelona lose 25 per cent without Messi, while Manchester United are not as potent when Rooney is absent. Both are forwards who enjoy dropping deep, picking up the ball and probing defences. Rooney has found a position he is comfortable in, drifting into the spaces between the opposition back four and midfield; Messi is a

master of the same art. Fortunately for us viewers, both are currently at the top of their game. Messi has been phenomenal yet again this year, scoring 52 goals in all competitions, and creating countless more. Rooney, meanwhile, certainly has his mojo back after his troubled start to the campaign. Of course they have their own individual traits too. Messi has an impish quality and is a supremely talented dribbler, always seeming to get his toe to the ball as it’s about to be cleared. He also picks defences apart by playing little one-twos with Xavi, Andres Iniesta and particularly Dani Alves, the overlapping right-back. Short passes of great quality are a speciality; you never see him switching play with a raking 40-yard cross-field ball. That’s partly a reflection of the teams’ philosophies. Barca like to keep it very tight, and are the best in the world at doing so, while Sir Alex Ferguson’s have a touch more variety to their game. Messi is the world’s greatest in my eyes, with better decision-making and more of a team ethos than Cristiano Ronaldo. I would put Rooney second in any list, however. As for who will come out on top tomorrow, it’s virtually impossible to call, but I’m hopeful an in-form United can pip Barca.

INSIGHT

TERRY VENABLES ANDREW COLE MARTIN KEOWN Pages 36-37 PREMIERSHIP FINAL PREVIEW Rugby Union: P34 ENGLAND STALLED Cricket: Page 35 BRITS STUMBLE Tennis: Page 35

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