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BUSINESS WITH PERSONALITY

Issue 1,341 Monday 14 March 2011 www.cityam.com FREE

n NIKKEI 225 FALLS 5.8 PER CENT IN EARLY TRADING n BOJ PUMPS £53BN INTO MONEY MARKETS

A girl wrapped in a
blanket surveys the
devastation in
Ishinomaki, north-
east Japan.
Picture: REUTERS

JAPAN COUNTS COST OF


DEVASTATING TRAGEDY
JAPAN CRISIS traders said. ing off foreign assets to increase their plants. Sony has also suspended pro- nuclear reactors to prevent them

BY STEVE DINNEEN The Bank of Japan (BoJ) this morn- stock of yen on the expectation of duction at eight factories. overheating.
ing injected seven trillion yen (£53bn) high demand from insurers and The death toll yesterday was The UN said the situation is no
JAPANESE markets were hammered into the economy via its market oper- companies working on rebuilding thought to be at least 10,000, with longer a serious threat but Kan
this morning as traders scrabbled to ations in an attempt to shield its frag- the country’s infrastructure. Prime aid workers working into the night stressed the administration is still
offload exposure to the devastating ile recovery and ensure there is no Minister Naoto Kan said he would recovering more bodies. In the port closely monitoring it.
Japanese earthquake. disruption to the banking system. It is take firm action against speculative of Minami Sanriku in Miyagi prefec- At least 1.4m people are without
The Nikkei was down a staggering thought the central bank has invest- currency trading. ture around 9,500 people were miss- running water. Aid agencies are now
5.8 per cent in early trading to ed in assets ranging from govern- The cost to the insurance industry ing out of a population of 17,000. worried waterborne diseases could
9,656.71, with stocks in firms includ- ment bonds to private debt. is likely to run into tens of billions, At least 590,000 were living in tem- quickly spread as the sea of sludge
ing Nissan, Honda, Sony and energy It will today announce an emer- with the Japanese government tak- porary shelters last night, with contaminates reservoirs.
giant Tepco – the owner of one of gency “quake budget”, although its ing the lion’s share of the hit due to a 210,000 evacuated from the area sur- A further 2.6m people are without
Japan’s damaged nuclear plants – all monetary options are limited by the scheme providing state insurance to rounding the Fukushima nuclear electricity and the government has
untraded due to heavy sell orders. fact interest rates are already at virtu- re-insurers for earthquakes. power station. introduced rolling blackouts in
The market could fall further when ally zero. Toyota, the world’s biggest carmak- Fears of a full-scale meltdown per- Tokyo and the surrounding areas in a
the backlog of sell orders are The yen touched a four-month high er, and Nissan have both halted pro- sist, despite an ongoing operation to bid to ration energy.
processed throughout the day, against the dollar, with traders sell- duction in all of their Japanese pump seawater into troubled MORE: P2-5

FTSE 100 t5,828.67 -16.62 DOW ▲12,044.40 +59.79 NASDAQ ▲2,715.61 +14.59 £/$ 1.61 unc £/¤ 1.16 unc ¤/$ ▲1.39 +0.01 Certified Distribution
31/01/11 - 27/02/11 is 107,265
2 News CITYA.M. 14 MARCH 2011

Yet again, we are JAPANESE EARTHQUAKE AND TSUNAMI

reminded of our
extreme frailty
question marks over the reliability and
price of oil and gas. The world needs
more nuclear power plants, not fewer;
but such an expansion can only be
acceptable if plants remain safe even
in the most extreme circumstances.
For the global economy, such a
catastrophe comes at a bad time.
EDITOR’S LETTER China was already slowing and plenty
of observers will worry that Japan’s
ALLISTER HEATH woes will trigger a serious global slow-
down. But the impact on Japanese
HUMILITY is the only appropriate activity – while nasty at first – is likely
response in the face of the horrendous to dissipate relatively quickly. The real Main picture: The 30-foot tsunami crashes
human tragedy, grief and destruction problem will be that Japan’s govern- over a flood barrier in the fishing port in
unleashed on Japan. We are fortunate ment will borrow even more, adding Iwate prefecture on Friday
to be living in Britain, a temperate to its already huge national debt. This Opposite: The damaged roof of a reactor
country largely immune from the could rattle credit rating agencies, for (left) is seen next to an undamaged reactor
destruction regularly unleashed by good reason. at the Fukushima Daiichi nuclear plant
natural forces on the rest of the world. Mark Skidmore, an economist at after an explosion
With the death toll mounting towards Michigan State, and Hideki Toya, from Pictures: REUTERS
ever-more horrific levels, it will take Nagoya City University, examined data
weeks to ascertain the human cost of for 151 countries over 1960-2003. Those

Fresh fiscal crisis to


the catastrophe; but the effect on the with higher income, education and
world economy is a little clearer. financial development suffered fewer
Most spectacularly of all, the losses from natural disasters, partly
nuclear industry energy has once because resources were devoted to safe-
again been thrust under the spotlight: ty and partly because economies rich
for the first time ever, several reactors in human capital bounce back excep-

hit Japan’s economy


in several different plants have been tionally fast. Take the Kobe earthquake
damaged at the same time, in some in January 1995: it killed 6,400 people,
cases very badly. Many of the reactors caused damage of 10 trillion yen, or 2
are old, dating back to the 1970s. But per cent of Japan’s GDP and debilitated
even though the messages from the the world’s sixth-largest container
Japanese authorities have been con- port. Yet Japan’s industrial production,
fused and the situation could yet after falling 2.6 per cent in January
become very serious, cautious opti- 1995, rose 2.2 per cent that February
mism appeared to be in order last and another 1.0 per cent in March. quake that killed around 6,000 people JAPAN | ECONOMIC FALLOUT

night. This is no Chernobyl. Yet many GDP for the first quarter of 1995 rose WORLD ECONOMY and led to approximately £62bn worth
questions will rightly be asked about at an annualised rate of 3.4 per cent. BY JULIAN HARRIS of damage. ● Stock markets
the positioning and security of the Even though one of Japan’s great cities Japan’s economy shrank by 0.3 per The Nikkei fell by as much as 5.8 per
affected reactors. All countries that lay devastated, this didn’t even register JAPAN’S ability to cope with the eco- cent in the final three months of 2010, cent in early trading this morning to
operate nuclear power plants need to in GDP data. Similarly massive catas- nomic costs of last week’s earthquake while unemployment is touching five 9,657. After the Kobe earthquake in
use this as an opportunity to review trophes, such as 9/11, also didn’t have and tsunami was called into doubt by per cent – notably high by Japanese
safety standards and tighten up on anything like as large a direct econom- analysts yesterday. standards. Hopes of a rebound in
1995, the Nikkei fell 5,000 points over
procedures. This is vital: the last thing ic impact as was originally feared. The “The timing of the disaster could growth have been disrupted by the six months.
we need is this catastrophe to discredit real story is one of appalling human not have been much worse,” said John natural disaster, according to econo-
nuclear energy at a time of growing suffering, not economics. Higgins of Capital Economics. “Japan’s mist Chris Scicluna of Daiwa Capital. ● Economic recovery
It is worth recalling what happened economic recovery has lost momen- “But that same disruption – as well Japan’s economy shrank 0.3 per cent in
after Kobe. The Nikkei fell 6.6 per cent tum and a large part of the reconstruc- as cost pressures on the construction the last quarter of 2010. After Kobe
in the first week, 5.26 per cent during tion costs will add to the government’s sector during the rebuilding phase – GDP still grew by 0.8 to 0.9 per cent
the next month, and 15 per cent over significant debt burden.” could help to accelerate the end to per quarter in the following three quar-
the next three months. Six months Japan’s public debt dwarfs most Japan’s deflation that we had expected ters of 1995, before dipping again.
later, it had lost 25 per cent – but by peer countries and has already been to see in coming months,” he added.
7th Floor, Centurion House, the end of 1995, it had regained all of With an aging population posing an
forecast to reach 250 per cent of GDP ● Fiscal problems
24 Monument Street, London, EC3R 8AJ its losses. What about today? Tokyo in the next four years, leaving it threat- ever-growing burden on Japan’s public
Tel: 020 7015 1200 Fax: 020 7283 5334 Government debt is around 200 per
opened heavily down, suggesting ened by credit downgrades. finances, rating agencies have sound- cent of GDP, posing a problem for
Email: news@cityam.com www.cityam.com shares may fall faster this time around. “The scope for fiscal stimulus is ed the alarm and warned of possible
reconstruction costs and blunting the
Editorial Japan is a huge importer of raw much less than it was in 1995,” said downgrades unless politicians bury
opportunity for fiscal stimulus.
Editor Allister Heath materials so a temporary drop in Higgins, referring to the Kobe earth- the hatchet and come up with a plan.
Deputy Editor David Hellier demand could push down the price of
News Editor David Crow oil and other commodities. Insurers
Night Editor
Business Features Editor
Katie Hope
Marc Sidwell
could be hit for $35bn, though a
Japanese government guarantee WHAT THE OTHER PAPERS SAY THIS MORNING
means the losses to the City may not
Lifestyle Editor Zoe Strimpel be as large as for a similar event in
Sports Editor Frank Dalleres another country. Japan is the second-
Art Director Craig Gaymer biggest holder of US government
Pictures Micha Theiner bonds, with $900bn in reserves. Some GREEK BANK SCUPPERS HOPES SERIOUS FRAUD OFFICE PLANS FERRARI ROARS INTO INDIA IN
Commercial of these will be sold to pay for repairs, OVER DEAL NEW KAUPTHING RAIDS PURSUIT OF THE SUPER-RICH
Sales Director Jeremy Slattery especially by Japanese insurers; there Alpha Bank, Greece’s third-largest The Serious Fraud Office is set to Ferrari is to start selling sports cars in
Commercial Director Harry Owen will be less demand for US Treasuries lender, has killed hopes of a merger launch a series of new raids connect- India this spring as it seeks to tap into
Head of Distribution Nick Owen in the months ahead, pushing up dol- deal with larger rival National Bank ed to the collapse of the Icelandic booming demand for luxury vehicles
lar yields. If overseas assets are sold of Greece, scotching the push by reg- banking system as part of the grow- in the third largest economy in Asia.
Distribution helpline and repatriated to Japan, this could ulators and the government for the ing investigation which saw Robert The Italian carmaker has signed an
If you have any comments about the distribution put upwards pressure on the yen. All country’s troubled banking sector to and Vincent Tchenguiz arrested in agreement with Shreyans Group of
of City A.M. Please ring 0207 015 1230, or email of this could be negated by the Bank of strengthen itself through consolida- their London homes last week. The India.
distribution@cityam.com
Japan: it will flood the markets with tion. SFO is believed to be planning a series
Editorial Statement yen, starting today.
So much for the economics. As Alice RETAILERS RUN OUT OF IPAD 2
of additional raids in the hope of
uncovering vital evidence on the
WHICHEVER WAY YOU LOOK AT IT
“ENGLAND FACES HUGE SHORTAGE
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints Morse Earle once wrote, “Yesterday is WITHIN HOURS 2008 failure of Kaupthing. OF HOUSES BY 2025”
Commission. The PCC takes complaints about the history. Tomorrow is a mystery. Today Many retailers and Apple stores ran England could face a housing short-
editorial content of publications under the Editor’s is a gift. That’s why it is called the pres- out of the computer company’s sec- JON MOULTON BUILDS £200M age equivalent to the entire housing
Code of Practice, a copy of which can be found at ent.” As Japan mourns its dead, the ond-generation iPad tablet within GREEN ENERGY FUND stock of Birmingham, Liverpool and
www.pcc.org.uk
rest of us could do worse than to hours of its first availability, suggest- Jon Moulton, the venture capital vet- Newcastle unless there is a “funda-
Printed by Newsfax International, reflect on such wise words. ing that initial sales could surpass eran, is to launch a £200m invest- mental review of housing policy”,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS allister.heath@cityam.com those of the first version. Queues in ment fund to focus on sustainable according to the Institute of Public
Follow me on Twitter: @allisterheath America wrapped around city blocks. energy and infrastructure. Policy Research.
CITYA.M. 14 MARCH 2011 News 3

Bank of Japan
Nuclear fears injects ¥7trn to
at Fukushima soothe markets


WORLD ECONOMY

around Fukushima Daiichi and a THE Bank of Japan this morning


ENERGY
BY MARION DAKERS 10km zone around nearby injected a record 7 trillion yen (£53bn)
Fukushima Daini around 180 miles into the money markets to soothe
JAPANESE Prime Minister Naoto Kan north-east of Tokyo, the IAEA said. nerves following the devastating
this morning said the situation at Radiation was also 400 times the effects of the earthquake and tsuna-
8E8CPJ@JcA8G8EËJEL:C<8IGC8EKJ the country’s damaged nuclear normal level at the Onagawa plant, mi.
FeX^XnX power plants remained “worrisome”, where a state of emergency was The meeting’s conclusion was
IX[`fXZk`m`kp although officials said pressure declared, but authorities said the brought forward 24 hours in response
\oZ\\[jefidXc inside a third damaged reactor was reactors were under control. to the crisis, in a bid to ensure stabili-
c\m\cjYlk falling. The World Health Organisation ty in the markets.
i\XZkfijle[\i The International Atomic Energy said the public health risk from The amount, at 7 trillion yen, is
EL:C<8I
GFN<I Zfekifc% Authority (IAEA) yesterday warned of Japan’s atomic plants remained unprecedented and much higher
JK8K@FE further hydrogen explosions at “quite low” yesterday. than the usual 1 trillion to 2 trillion
Fukushima Daiichi, the site of a blast Japan has generated nuclear power yen injected in the wake of big mar-
on Friday that blew the roof off the since the late 1970s, and now gets ket-moving events.
=lblj_`dX
reactor building, as engineers vent around a third of its power from "The move is aimed at stabilising
K_i\\f]j`o the plants to relieve pressure caused nuclear sources. financial markets and ensuring
Zffc`e^jpjk\dj by overheating cores. The shutdown of some of the coun- smooth fund settlement," a BOJ offi-
[XdX^\[% Venting would release small levels try’s 55 plants has forced the govern- cial said.
)'bd of radiation, plant operator Tokyo ment into imposing rolling blackouts The Bank of Japan had already
\mXZlXk`feqfe\% Electric Power Company said. for 3m homes, starting this morning, promised “to do its utmost, including
Some of Fukushima’s plants are to prevent an all-out power outage on the provision of liquidity, to ensure
KfbX` being cooled using seawater after the damaged grid. the stability in financial markets and
water supplies were knocked out by Energy and climate secretary Chris to secure the smooth settlement of
Knff]k_i\\
the earthquake and tsunami. Huhne yesterday ordered a “thor- funds, in the coming week”.
Zffc`e^
A partial meltdown in reactor 1, ough report on the implications of In response to the last tragic earth-
^\e\iXkfijflk the site of Friday’s blast, remains a the situation in Japan and the lessons quake, which hit Kobe in 1995, the
f]fi[\i% possibility according to cabinet secre- to be learned” for UK nuclear power. Bank cut rates by 0.75 per cent. Yet
tary Yukio Edano. A US senator went further, calling such easing is not available to the
More than 200,000 people have for the country to “put the brakes on” Bank this time, with rates already as
been evacuated from a 20km radius the States’ nuclear power scheme. low as possible.
4 News CITYA.M. 14 MARCH 2011

JAPANESE EARTHQUAKE AND TSUNAMI

Factory and infrastructure damage


could hit global supplies for weeks

JAPAN QUAKE Japan’s three largest car manufactur- source products from elsewhere.
BY RICHARD PARTINGTON ers Toyota, Honda and Nissan. British chip designer ARM Holdings
Companies with links to Japan could take a knock on hit, along with
MANUFACTURERS worldwide could could take a hit, as components need- other technology firms with links to
be hit for weeks to come following ed for assembly in Europe and the US operations in Japan.
Japan’s catastrophic earthquake and struggle to get through. The country last year accounted for
tsunami. David Leiker, analyst at wealth man- 13.9 per cent of global electronic
Leading technology firms and car ager Baird, said infrastructure dam- equipment factory revenue, according
manufacturers in the country have age could affect shipments. to data provider IHS iSuppli.
been forced to suspend production Several firms, including the world’s It produced $216.6bn (£134.8bn)
and close factories, including second largest chipmaker Texas worth of electronic equipment in
microchip producer Toshiba and Instruments, said they would look to 2010.

The town of Minami Sanriku,


where 10,000 are feared dead,
was virtually obliterated by the
tsunami. Pictures: REUTERS,
GETTY

Insurers face
$35bn payout

JAPAN QUAKE the earthquake is likely to be one of


BY JULIET SAMUEL the most expensive in history, it will
be the government that bears much
THE insurance industry is braced for of the hit, rather than private rein-
a hit worth tens of billions from surers.
Japan’s earthquake, as the country The cost of the tragedy will put
digests a tragedy that has likely cost extra strain on Japan’s already-dire
tens of thousands of lives and left public finances: its debt-to-GDP ratio
millions homeless. stands at 200 per cent.
But the bulk of the costs could be And AIR’s initial estimate only
borne by the Japanese government, includes estimated damage from the
which provides insurance to re-insur- quake itself and not from the tsuna-
ers for earthquakes up to a pay-out mi, with the firm warning that the
limit of 5.5 trillion yen (£41.8bn). number is likely to be revised
Risk-modelling firm AIR upwards as the true extent of the
Worldwide has offered an initial esti- catastrophe becomes clear.
mate of a $15-$35bn (£9.3bn-£21.8bn) Despite the government backstop
loss on insured properties, which for reinsurers, their shares tumbled
would be many times the $956m pay- on Friday. Munich Re closed down
out triggered by Japan’s second-worst 4.28 per cent at €111 (£96.30) and
earthquake in Kobe in 1995. Swiss Re fell 3.54 per cent to SFr51.4
But under Japan’s unique reinsur- (£34.43) as investors panicked over
ance regime, most losses caused by the impact of the disaster.
earthquakes are ceded to a national Analysis by Goldman Sachs put
reinsurer, which in turn cedes much exposure among non-life insurers at
of its risk to the government. only 3.28 per cent, or ¥144bn
The policy means that although (£1.1bn), of their total premiums.

ANALYSIS | THE FIVE MOST COSTLY WORLD INSURANCE LOSSES, 1970-2009


Rank Date Country Event Insured loss in 2009 US dollars

1 25/8/05 US, Gulf of Mexico, Hurricane Katrina; floods, $71,163m


Bahamas, North Atlantic dams burst, damage to oil rigs
2 23/8/92 US, Bahamas Hurricane Andrew; floods $24,479m
3 11/9/01 US Terrorist attacks on World Trade Centre, $22,767m
Pentagon and other buildings
4 17/01/94 US Northridge earthquake (magnitude 6.6) $20,276m
5 9/9/08 US, Caribbean, Hurricane Ike; floods, offshore damage $19,940m
Gulf of Mexico
CITYA.M. 14 MARCH 2011 News 5

Markets look to oil Japanese MPs


give Kan time
as well as quake to avert crisis
more of an overall sapping of investor
MARTIN ON


confidence, rather than direct major PROFILE
financial consequences. US stock mar- BY STEVE DINNEEN

THE MARKETS kets actually closed up on Friday


despite the devastation in Japan, find-
ing solace from a dip in the price of oil.
Japanese Prime Minister Naoto Kan
said the disaster facing his country is
GFT is quoting the FTSE 100 index to the worst since the second World
open up 22 points from Friday’s close, War. For the time being he has the
Vehicles block a canal at a level of 5,850. Elsewhere the support of opposition parties.
in Tagajo German DAX is called up 31 points at But the deeply unpopular politician is
7,012, and the French CAC is quoted up still living on borrowed time. Just
15 points to open at 3,943. hours before the disaster struck he
Oil will continue to be a major factor was fending off calls for his resigna-
this week. The drop in crude prices on tion. He has been accused of illegally
MARTIN SLANEY Friday came amid hopes that OPEC
members will begin to increase produc-
accepting campaign money and
political infighting has prevented him
tion to make up for the shortfall from from passing meaningful legislation

I
NEVITABLY, traders will be keeping Libya. The earthquake also played a to tackle Japan’s ageing population.
an eye on how the Tokyo market part, with Japan being the third largest His chance of survival seems to hang
closes. The earthquake hit just oil importer in the world. WTI sweet on the success of the res-
before the cash equity market on light crude dipped back below $100 per cue and clean-up
the Tokyo Stock Exchange closed on barrel, as low as $99.01 Political missions. Top priori-
Friday, but index futures traded in protests in Saudi Arabia – the world’s ty is to avert a
Singapore and then Chicago on Friday largest exporter of oil – will also be very nuclear disaster but
rightly indicated the benchmark closely watched. the wider recovery
Nikkei 225 index would open well Martin Slaney is director of GFT’s global deal- will take many years
below 10,000. The Bank of Japan met ing operations and, either way,
today and released 7 trillion yen to will come to
markets. define his
As sobering as the news from Japan term as
A woman searches for was, Western markets had a full day of Japan’s
supplies amid piles of trading to digest the potential econom- leader.
debris in Ofunato City ic impact of the quake and tsunami, NAOTO KAN
and the negatives for here may well be
6 News CITYA.M. 14 MARCH 2011

TNK-BP hits out at BP after


Rosneft compromise flops
of constructive and reasonable behav- a statement on both the TNK-BP and

ENERGY
BY MARION DAKERS iour” after they voted down a plan for AAR websites.
TNK-BP to join a £10bn share swap and BP had said it “remains committed”
BP’S RUSSIAN partners ramped up exploration deal with Rosneft, the to finding a “business like resolution”.
their dispute over the firm’s Arctic Russian state-owned oil producer. Rosneft warned it “will undertake
exploration plans yesterday after a TNK-BP management criticised BP all measures to defend the rights of its
TNK-BP board meeting at the weekend for “misleading and inaccurate state- shareholders, with all the resulting
failed to reach a compromise. ments”. consequences”.
TNK-BP, a 50:50 joint venture “To date, BP has made no effort to An arbitration tribunal is expected
between BP and the Russian AAR con- rectify the situation created by its to report its decision within a few
sortium, criticised BP-nominated attempt to enter into a strategic weeks. AAR has a temporary injunc-
directors’ conduct during Saturday’s alliance with one of TNK-BP’s main tion halting progress on BP and
meeting in Paris as “not representative competitors, Rosneft,” the firm said in Rosneft’s deal.

Diageo chief executive Paul Walsh hopes to snap up Stock Spirits Picture: GETTY

Diageo eyes
bid for Polish
vodka maker

CONSUMER Oaktree Capital Management has


BY MARION DAKERS owned Stock since 2007, but hired
Credit Suisse in November to help sell
DRINKS giant Diageo hopes to extend off the company, which owns
its buying spree by snapping up cen- Advocaat liquer, Hammer Head
tral European-focused spirits compa- whisky and Zoladkowa Gorzka,
ny Stock Spirits for more than $1bn Poland’s leading vodka brand.
(£622m). Stock is headquartered in the
Diageo, the world’s biggest spirits Luxembourg and has operations in
maker, is one of several companies in the UK, Poland, the Czech Republic
the running to buy Stock Spirits, a and Italy.
source familiar with the company Diageo said when it announced its
said yesterday. The news comes just purchase of Mey Icki that it would
weeks after Diageo announced its continue to look for opportunities in
purchase of a Turkish spirits group central and eastern Europe.
Mey Içki for £1.3bn. The firm hopes to find growth in
Lion Capital, Apax Partners and emerging markets to replace sales
Advent International are also lost in western Europe during the
believed to be eyeing the company, recession.
though all were unavailable or A Diageo spokesperson declined to
declined to comment yesterday. comment yesterday.

In pursuit of the luxury drinker


London to WHEN Diageo snapped up Turkish Vladimir have been struggling

Copenhagen drinks maker Mey Içki for £1.3bn


last month, this column welcomed
the deal but called for more acqui-
sitions outside the firm’s mature
recently despite a higher market-
ing spend.
That is partly because of a
squeeze on middle market offer-
western European and North ings: recession-hit drinkers go for
from
£
29 .99 American markets. “An aperitif is budget brands while upper class
all well and good,” we said. “But boozers opt for newer luxury alter-
Paul Walsh needs to tuck in.” Alas, natives. Stock Spirit’s flagship
single we can’t claim to have known he brand Czysta de Luxe – aimed at
inc. taxes would strike again so quickly, this the top end of the market – is the
time plumping for Stock Spirits, best selling clear vodka in Poland
the premium Polish spirits maker, and one of the fastest growing in
although he is right to do so. the rest of the world, especially
The reasons for this offer are less America. It should help Diageo win
clear-cut than the Turkish buyout, back customers that are looking
which offered a popular local for something a little more
brand as well as a large distribu- refined.
tion network in a relatively imma-
We fly from London Gatwick, London Stansted and Manchester. Price correct on 14 February for travel between ture market. Poland, of course, is
28 February and 17 April 2011. Variable charges for hold baggage apply and some payment methods attract a no stranger to Vodka, but sales of
Diageo’s Polish brand Smirnoff
BOTTOMLINE
handling fee. See website for details. Photo credit: Nicolai Perjesi. Analysis by David Crow
CITYA.M. 14 MARCH 2011 News 7

Bahrain hit by unrest as calls


mount for Libyan no-fly zone
February. One demonstrator showed ings that toppled the leaders in Egypt


MIDDLE EAST CRISIS
BY STEVE DINNEEN a round red mark on his chest, which and Tunisia.
he said was sustained when a tear gas Meanwhile international calls for a
PROTESTERS in Bahrain barricaded canister was fired directly into him. no fly zone over Libya intensified. The
themselves around the financial dis- Protesters say they will not sleep as Arab League voted in favour of the no-
trict of the capital Manama yesterday, they maintain pressure on the belea- fly zone, with the UK and US praising
bringing the banking hub to a grind- guered regime. the decision while falling short of
ing halt. Bahrain, which is connected to guaranteeing action.
Police fought back, firing tear gas Saudi Arabia via a causeway, has been There are fears that imposing the
at the crowds in the most violent gripped by its worst unrest since the no-fly zone, which would be policed
clashes in the country since the mili- 1990s after protesters took to the by US and allied warplanes, could
tary killed seven protesters on 17 streets last month, inspired by upris- spark a third war in the region.

Police and protesters fought in violent skirmishes in Bahrain yesterday Picture: REUTERS

EU attack on
Irish tax rate
the interest rate Greece must pay on

EUROZONE CRISIS
BY JULIET SAMUEL its bailout by one per cent, but to
refuse Ireland similar relief.
IRELAND’S newly elected Prime The pact agreed on Friday also
Minister Enda Kenny is facing an extended maturity on Greece’s
assault on Ireland’s sacrosanct 12.5 bailout debt to 7.5 years and, follow-
per cent corporate tax rate by ing the vote in favour of a Tobin tax by
Eurozone leaders, who declared on the EU Parliament last week, prom-
Friday that they would move to ised to develop a regional financial
enforce a uniform corporate tax transaction tax despite warnings that
regime across the region. such it could devastate European
In negotiations intended to resolve trade.
the sovereign debt crisis, Eurozone In a major German concession, the
ministers refused to lower the puni- pact also boosted the main Eurozone
tive interest rates on Ireland’s €85bn bailout fund’s ability to lend out up to
bailout if it does not bring its tax its full €440bn (£382bn) capacity by
regime into line with the Eurozone guaranteeing more of its debt. The
norm of around 24 per cent. bailout fund was also given power to
The European Council declared intervene in primary sovereign debt
that the European Commission markets in exceptional circum-
“intends to present a legislative pro- stances.
posal on a common consolidated cor- The latter move will be welcomed
porate tax”, which could effectively by the European Central Bank, which
rule Ireland’s lower tax rate illegal. has been single-handedly propping up
The Council’s anti-Irish stance was Eurozone sovereign debt markets over
underscored by its decision to lower recent months. CNBC COMMENT: P9

AT A GLANCE | EUROZONE PACT


● Context: Eurozone leaders met on eign debt “with strict conditionality”. The
Friday to thrash out a solution to the ECB had been pushing for its bond-pur-
region’s sovereign debt crisis. The resulting chasing duties to be taken over by the
pact exceeded expectations, but markets region’s bailout fund.
are still awaiting further details due after ● Relief for Greece: The interest rate on
another summit on 24 March. Greece’s €110bn bailout was cut by one per
● Bailout fund: The pact signed on Friday cent and its maturity extended to 7.5 years
extended the ability of the European in a bid to avoid a default.
Financial Stability Facility (EFSF) to lend ● Fiscal rules: Ministers also agreed that
out all of its €440bn funds in order to bail Eurozone states should implement a legally
out sovereigns. This effectively boosts the binding cap on their debt, though did not
fund’s size, since it was before limited by specify what form this should take.
Germany’s refusal to guarantee its debt. ● Common tax rates: In an attack on
● Bond market purchases: Euro leaders Ireland’s low corporate tax, the pact prom-
also gave the EFSF permission to buy sover- ised to legislate for a common regional rate.
8 News CITYA.M. 14 MARCH 2011

ANALYSIS l Pre-tax profit/loss of UK's five major banks

Top 300 RBS


ANALYSIS l Net interest margins for UK’s five major banks
15,000 £m 300 Net interest margin (bps)

12,000
A: 2008
250 B: 2009
9,000
C: 2010

executives to
6,000
200
3,000

0 150
A B C C A B C A B C A B C
-3,000
A B

share £350m
100
-6,000

-9,000
A: 2008 50
B: 2009
-12,000 C: 2010
Source:KPMG LLP (UK) 2011 0
-40,00 A B C A B C A B C A B C A B C
Barclays RBS Lloyds HSBC Std. Chtd Barclays RBS Lloyds HSBC Std.Chtd
Source:KPMG

BANKING expected to receive more than chief


BY JULIET SAMUEL executive Stephen Hester’s £7.7m pay-
out.
RBS will unveil pay-outs totalling near- The top five officers in question will

KPMG: UK banks must double


ly £350m to its top 300 executives this include all but two of the non-board
week, even as deputy Prime Minister officers executives named last week as
Nick Clegg has warned that he wants receiving millions in long-term incen-
to “wring the necks” of bankers who tive plan pay-outs.
take home “unearned wealth”. The highest paid will be John

capital for new Basel rules


It is understood that RBS’s remuner- Hourican, chief of RBS’s investment
ation report, which is due for release banking division, who will take home
on Friday, will for the first time pro- a number of corporate bonds from the
vide data on the payment of the bank’s bank in addition to the £2.5m all-share
“code staff” – all executives who take bonus that vested last week.
potentially risky decisions. RBS declined to comment.
Those payments will average £1.2m-
£1.5m each, although some staff will ANALYSIS l Royal Bank of Scotland riers to better returns. ly, “tensions and competing priorities

BANKING
receive much more and some much 50
p 42.85 BY JULIET SAMUEL
It says that the UK’s biggest five between nations” will result in an
less than the average. 11 Mar banks would have to have raised “unlevel playing field” for banks on a
The revelations are sure to stir con- BANKS need to double their core capi- £577bn in 2009 in order to comply range of vital issues, including capital
46
troversy, with Clegg telling Liberal tal in order to comply with Basel III, with Basel III, making capital-raising a requirements, remuneration and
Democrats yesterday that he wants to according to KPMG’s annual bench- top priority for 2011. structural changes.
make banks “the servants of the econ- 42 mark report on UK banks. In addition, KPMG estimates that Banks are also having to shift their
omy, not the masters”. The report warns that despite a under the FSA’s stringent new liquidi- funding sources towards retail
Under the terms of the Merlin deal recovery in profits (see chart above) ty regime, £600-£700bn is now “tied deposits, which are regarded as more
negotiated with the Treasury, RBS will 38 and a marked drop in impairments up in liquidity buffers” in the UK. “sticky” and stable. But the competi-
also reveal the pay of its top five non- across the board, new capital and liq- The report also warns that despite tion for deposits has narrowed interest
board executives. None of them are 13 Dec 5 Jan 25 Jan 14 Feb 4 Mar uidity requirements will throw up bar- attempts to coordinate international- margins (see chart above).
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CITYA.M. 14 MARCH 2011 News 9

Troubled EU nations trading austerity for aid


Friday night’s deal in Brussels was gramme only helps Greece is sympto- survival ahead of the country’s best course and forces senior bank bond
only made possible by sovereign matic of the deep divides that still interests. It knows that the govern- holders to take a haircut then the
downgrades and skyrocketing bond exist. Ireland and Portugal both need ment is finished if the EU and the IMF ramifications will be huge for the
yields that still have the potential to much more assistance if they are to are called in. But if Socrates is hoping whole of the European banking sec-
push the periphery over the edge. keep their heads above water. Yet the fund will buy his country’s bonds tor. So expect the line from Ireland to
So what kind of a deal did we get? more and more austerity seems to in the primary market then he also get tougher as we progress towards
Well, to be honest, it does represent remain the quid pro quo for this help knows that he will have accepted a the end of the month.
progress of a sort. Greece will see its being available. Both countries are programme of sovereignty sapping In short, what we got in Brussels
CNBC COMMENT cost of borrowing reduced and the insolvent at present and need a com- oversight. was progress but not the end game.
bailout fund will have some extra bination of lower rates and debt Ireland also finds itself in a diffi- The deal struck on Friday is far from
GUY JOHNSON money and opportunities to use it.
The issue is that this programme will
restructuring to chart a course back
to growth. More cuts won’t help.
cult position. Enda Kenny is right to
resist calls to raise Ireland’s corporate
the finished article and while the
markets now may give the region a
not be enough to solve the region’s The fact that Lisbon may have tax rate in return for a reduced rate bit more breathing room there is still

W
HY is it that the Eurozone’s problems and prevent the inevitable announced it will implement anoth- on the EU/IMF bailout package. He much to be done before the formal
leaders will only make a defaults that are coming for Greece, er round of austerity is more politics holds many more cards than the likes summit on 24-25 March.
decision when they have Ireland, Portugal and others. than economics. Jose Socrates’ gov- of Sarkozy gives him credit for. That’s Guy Johnson presents European Closing Bell
their back to the wall? Indeed, the fact that the new pro- ernment seems to be putting political because if Dublin takes the sensible on CNBC

NEWS | IN BRIEF
First could axe Western route Vodafone steps up Verizon deal
Transport operator FirstGroup could Vodafone and its US partner Verizon plan
hand back its First Great Western rail to step up their partnership by combining
contract three years early in a bid to save more parts of their businesses and shar-
£800m. The company, whose rail unit ing some equipment costs. They are
operates the £1.1bn franchise which runs examining plans to pool parts of their
into central London from Wales and the enterprise divisions and buy network
west of England, is looking at activating equipment together. However, sources
a break clause in the contract allowing it close to the firm said no immediate
to terminate the franchise in 2013. changes will be made.

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The Capitalist
10 EDITED BY CITYA.M. 14 MARCH 2011
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist

TOP LAWYERS CALL FOR QUOTAS TO


BOOST WOMEN IN THE BOARDROOM
SOME of the UK’s most high-powered president of the Law Society; Dame only one female judge sits on the
female lawyers convened at the Janet Gaymer, senior partner of Supreme Court.
Southbank Centre on Saturday after- Simmons & Simmons; and Kim Hollis “It’s a disgrace,” thundered Ingrid
noon to debate the “chronic inequali- QC, incoming chair of the Bar Simler QC, current chair of the Bar
ty” at City law firms. Council’s Equality and Diversity Council’s Diversity and Equality
The panel, chaired by Denise Jagger Committee. Committee. “The only way to address
from legal practice Eversheds, which The fearsome legal eagles didn’t [the inequality] is by using quotas. If
organised the event, contained some mince their words, reminding a rapt that means women getting jobs
of the most high-powered women in audience of high-flying female con- because they are women then so be it.
the industry (pictured right), includ- temporaries that just 15 per cent of Men have been getting appointed
ing Lucy Scott-Moncrieff, deputy vice High Court judges are women, and because they are men for years!”

The panel line up at Evershed’s Women of the World debate at the Southbank Centre

That’s one step ahead of the coali- West End and two round the corner
tion government’s Equality Act, which from the Bank of England – although
will allow City bosses to discriminate he has ruled out 14 Cornhill, home of
positively towards minorities from Green’s oyster bar and Aviva Investors.
next month. “There are a few reasons why that
However, the majority of the panel wouldn’t work for me,” he said. One
were in favour – if only to prevent top of them being the fact the building is
lawyers jumping ship due to City owned by Libya’s sovereign wealth
firms’ “long hours culture”. Sandie fund, the Libyan Investment
Okoro, general counsel at Barings Authority, and Less’s new club would
Asset Management, noted: “Many become a tenant of Gadaffi? “I could-
good female lawyers are leaving law n’t possibly comment.”
firms before achieving partnership
and heading for industry, where diver-
sity has progressed further.” WHO DARES WINS
THE City and horse racing have long
enjoyed a close relationship, but today
DIFFERENT CLASS the two worlds moved even closer
HAVE you ever wondered how Secrets, with the launch of the first-ever tie-up
London’s largest table-dancing chain, between an old-school bookmaker and
got its name? Well, as owner Stephen a financial spread-better.
Less told The Capitalist, it is because he Bringing the Square Mile to Mayfair
was watching the Mike Leigh film is Fitzdares Financial Spreads, a part-
Secrets & Lies in the kitchen of his nership between private bookmaker
Hammersmith home when his busi- Fitzdares and Financial World Spreads
ness partner rang asking him to con- that will allow Fitzdares’ members to
firm the name of the enterprise. bet on 3,000 City markets alongside
So all eyes should start scanning the the existing spread-betting and sports
TV schedules for clues as to what Less services.
will call his next entertainment “This is all about enabling those
launch: a cocktail bar for City boys with a taste for risk to exercise it wher-
that will attract a “classier” crowd ever they want,” said Conor Foley,
than his table-dancing haunts. chief executive of World Spreads, on
Less has yet to negotiate a deal for the “one-stop betting environment”.
the venue, set to open next year, but Cheltenham will never be the same
he is looking at four locations in the again.

mahiki
BILL OF THE WEEK 1 Dover Street May
London W1S 4LD
fair

Patron tequila:
Armada Treasure £220.00
Chest Cristal:
Armada Treasure £700.00
Chest Cristal:
Armada Treasure £700.00
Chest Cristal:
Grey Goose – £700.00
Rehoboam:
£1,450.00
Louis Roederer
Cristal – Jeroboam:
£5,600.00
Louis Roederer
Cristal – Jeroboam:
£5,600.00
Louis Roederer
Here’s a clever thing. With the Yell Mobile app, you can find a local Cristal – Jeroboam:
Louis Roederer
£5,600.00

business, view maps and get directions to wherever you want to Cristal – Jeroboam:
Louis Roederer
£5,600.00

go, from wherever you happen to be. You can download it for free, FIFTEEN members of a certain high-flying
Cristal – Jeroboam:
Louis Roederer
£5,600.00
and it puts all the local knowledge you need right there in the palm company are regulars at Mayfair haunt Cristal – Jeroboam:
£5,600.00
Dom Perignon
Mahiki – although their most recent celebra-
of your hand. tion was large even by their standards, rack-
Rosé – Magnum:
£1,200.00
Louis Roederer
ing up more than £50,000 in tequila, Cristal – Magnum:
£1,100.00
Download the Yell Mobile app from your app provider today. cocktails and champagne. Shots of Patron Louis Roederer
Cristal – Magnum:
tequila and top-end versions of the club’s Louis Roederer
£1,100.00
famous Treasure Chest cocktail did the Cristal – Magnum:
£1,100.00
rounds, although the centrepieces of the rev- Louis Roederer
elry were magnums and jeroboams of cham- Cristal – Magnum:
£1,100.00
Louis Roederer
pagne – 13, to be precise, although The Cristal – Magnum:
Capitalist hears the party gave some to Louis Roederer
£1,100.00
other tables. Throw in a Rehoboam of Grey Cristal – Magnum:
£1,100.00
Goose, containing 4.5 litres of French-dis-
tilled vodka, and you have the makings of a Sub total:
£45,170.00
record-breaking night. Service @ 15%:
£6,775.50

Total: £51,945.50
12 News CITYA.M. 14 MARCH 2011

JJB eyes £65m


Jimmy Choo share issue to
hires advisers stave off debts

for £500m bid


RETAIL


DEBT ridden retailer JJB Sports is plot-
ting a further £65m fundraising in an
effort to reverse its recent financial
woes.
The Wigan-based firm will tomor-
row announce details of a share offer-

LUXURY BRANDS Morgan Stanley to complete the strate- ing to raise the cash, which is expected
BY RICHARD PARTINGTON gic review. to come from existing investors.
The review, which is due this spring, It will use the funds to give it work-
THE FOUNDER of the Jimmy Choo has considered holding on to the com- ing capital as it goes through a tough
fashion brand has hired bankers to pany, a sale, or spinning it off in a restructuring process.
advise him on buying back the compa- stock market listing. JJB chairman Mike McTighe wants to turn the retailer around. Picture: REX JJB’s five leading shareholders have
ny he set up. However, it is understood that agreed to the plan following talks,
Jimmy Choo, the Malaysian- the review is likely to recom- which comes within three months of a
born shoemaker who founded mend a sale. OLIVER HEMSLEY stockbroking firms. separate £31.5m share offering.
the eponymous brand with Choo, who started produc- Under his leadership, the broker has Chairman Mike McTighe is spear-
Tamara Mellon in 1996, could ing designer shoes from his NUMIS landed deals with increasingly presti- heading the refinancing alongside his
lodge a £500m bid for the Hackney workshop in 1986, gious clients, including marketing firm chief executive Keith Jones.
company. could seek to work alongside Aegis Group last year. He is thought to be considering
He has appointed Daniel private equity backers in Prior to founding Numis, he worked plans to give directors shares in the
Stewart to advise on his order to repurchase the as a marine underwriter at Lloyd’s for company as he looks to turn the busi-
options in the firm. firm. the Brockbank Group. ness around.
The firm’s private He sold his 50 per cent The Lazard advisory team is being led JJB, which holds a £25m facility with
equity owner stake in the firm in 2001, NUMIS chief executive Oliver Hemsley is by managing director in investment the Bank of Scotland, has struggled
Towerbrook Capital is whilst Mellon retained leading the advisory for JJB’s share banking Melanie Gee. Managing direc- under the pressure of its debts and fal-
in the process of her 15 per cent stake offering. His team, which also includes tor in UK capital markets Charlie tering sales.
reviewing its options and leadership of the former HSBC banker Heraclis Foreman is also working to advise JJB The retailer needs cash to pay credi-
for the business, firm. Economides, will oversee the process on its restructuring process. tors, including landlords and share-
which could include Choo remains asso- alongside US investment banking giant The bank has handled several signifi- holders, to support its second
a sale. ciated with the compa- Lazard. cant share offerings this year already, company voluntary arrangement in as
Last September, ny as a consultant Hemsley founded Numis in the early including the initial public offering of US many years.
the firm appointed designer, offering 1990s, growing his business into one of hospital operator HCA Holdings for JJB suffered a blow last week after
investment bankers Jimmy Choo could launch a £500m bespoke footwear to the most successful independent British $3.79bn (£2.4bn). rival JD Sports walked away from a
Goldman Sachs and bid for the eponymous shoe label celebrity clients. possible takeover.
CITYA.M. 14 MARCH 2011 News 13

City property vital to London’s world standing


Contrary to what you may have read, ber of world-famous landmarks. confident there was a market to fill specific problems such as rights to
I can assure you it is not all sun, cham- These are issues that many newer, their latest projects. light and the ongoing City street-
pagne and parties on yachts. purpose-built business environments – At the height of the financial crisis, works – into account in order to pro-
Throughout the week, I spoke pub- especially those in emerging markets – many of the City’s most important tect our status as a world-leading finan-
licly about the challenges facing the do not have to consider. developments, including many of the cial centre.
City and hosted countless meetings If the City is to retain its pre-eminent landmark tall buildings, were at one Fortunately, my time at MIPIM con-
and events with some of the world’s position as one of the leading global stage or another thought to be under firmed that the international business
leading architects and developers to financial centres, we need to be able to threat. In 2011, all of these schemes community – and perhaps even more
discuss what the future may hold. meet the demands of the international secured the requisite financing. importantly, its employees – still want
CITY COMMENT Of course, being based in the Square business community – and property, In its dual role as the representative to be based in London.
STUART FRASER Mile has numerous advantages. That is
why the world’s top firms and top tal-
planning and transportation have a
vital role to play.
body for the UK financial and profes-
sional services industry and as the local
However, this is a job that requires
our constant attention and, judging
ent continue to want to be based here. The state of the commercial proper- planning authority for the Square Mile, from the sheer number of internation-

L
AST week I joined 15,000 leading However we also face many difficul- ty market – particularly in important the City of London has to take a wide- al exhibitors present in Cannes, we can-
practitioners from across the ties, not least creating a modern and business centres – often reflects the range of seemingly disparate issues – not afford to take our eye off the ball
property industry at MIPIM, the sustainable property offer and infra- state of the economy overall; interna- from the ongoing unrest in the Middle for a single second.
international property conference structure network amidst a medieval tional developers and financiers would East and the future reform of the bank- Stuart Fraser is the Policy Chairman at the
hosted in Cannes every year. road network that is home to a num- not invest in property if they were not ing system to narrower, more sector- City of London Corporation.

Morale at UK
factories hits
record high
surprising,” said Chris Williamson of

UK ECONOMY
Markit, which compiled the data.
BY JULIAN HARRIS “The survey therefore suggests that
CONFIDENCE among British manufac- a reasonable pace of economic growth
turers has hit a record high, business should be sustained in 2011, with
consultancy KPMG said today. increased private sector hiring offset-
Over two thirds (68 per cent) of sur- ting some of the looming public sector
veyed manufacturers expect business job cuts,” he added.
activity to increase, leading to the However, inflationary pressures will
highest positive balance (60.4 per cent) increasingly be passed onto con-
since the survey began in 2002. sumers, the report suggested.
And morale in the service sector is Manufacturers forecast the sharpest
also improving, the report showed. rate of factory gate price inflation
Companies in the UK’s largest sector since the start of the survey. Input
anticipate the strongest expansion of price expectations also hit a record
business activity since April 2007. high, with a positive balance of 67.8
“UK business now appears to be per cent of respondents anticipating
preparing itself for growth,” said more price hikes.
KPMG’s Malcolm Edge. “Although
recovery is by no means yet assured, ANALYSIS l Manufacturing Business Activity
there are enough positive signs to 70 Net Balance %
mean that businesses need to be plan- 65
ning for better times.” 60
Employment expectations in the 55
service sector are also on the up, rising
50
to the highest survey balance (+23.2
per cent) since April 2007. 45
While positive data from British 40
manufacturers has become a common 35
narrative of the economic recovery, 30
service sector optimism was “more Oct 09 Feb 10 Jun 10 Oct 10 Feb 10

NEWS | IN BRIEF
Tory MP calls for growth policies Cost of credit hits manufacturers
Conservative MP Charlie Elphicke will The cost of credit has shot back up this
today call for the main rate of corporation year, manufacturing body EEF revealed
tax to be cut to 19 per cent, along with today. In the first credit survey since the
nine other recommendations to chancel- Project Merlin announcement last month,
lor George Osborne. The MP for Dover the balance of respondents reporting a
and Deal is expected to also call for rise in credit costs jumped to 32 per cent,
stamp duty to be scrapped on share from 19 per cent in the final three months
transactions, and the smaller business of 2010. “While there appears to have
growth fund to be floated on the London been some easing in availability, for many
Stock Exchange. Elphicke’s suggestions smaller companies the question is still ‘at
will be published by the Centre for Policy what cost?’” said EEF’s Lee Hopley.
Studies think tank.
Think tank attacks tax changes
West End retail sales take a knock An online tax calculator has been
High street sales in London’s west end launched ahead of chancellor George
took a hammering in February, falling by Osborne’s budget by the think tank
0.5 per cent compared to the same time Reform. Announcing the new device,
last year. The figures, released today by Reform attacked the “fairness policies”,
the New West End Company, mirror arguing that punitive taxes on high earn-
recently reported negative sales data ers increase the tax burden on middle and
from across the country. low earners.
14 News
BEST OF THE BROKERS
ANALYSIS l F&C Asset Management F&C ASSET MANAGEMENT
90 p
Deutsche Bank has downgraded the asset
77.80 manager from “hold” to “sell” with a target
11 Mar
86 price of 76p. The broker sees two new risks
from the firm’s results last week that are not
82 reflected in the current share price: a decline
in equity investment performance and a dis-
78
pute with key client Millennium BCP. DB sees
potential upside in F&C getting involved in
14 Feb 21 Feb 28 Feb 7 Mar the sector’s ongoing consolidation.
ANALYSIS l IG Group IG GROUP
480 p 465.00 Canaccord Genuity rates the spread betting
11 Mar
firm “hold” and has lowered its target price
to 482p. The broker notes that volatility was
460
stronger in February, helping to boost rev-
enue, but that it is unlikely that client activity
440 will remain this strong through the next
quarter. The broker has trimmed its earnings
forecasts for the year by two per cent to
14 Feb 21 Feb 28 Feb 7 Mar £163.9m on slower revenue growth.
ANALYSIS l Home Retail Group HOME RETAIL GROUP
240 p UBS rates the owner of Argos and
195.60 Homebase “neutral” with a 12-month target
230 11 Mar
price of 190p, down from 210p. The broker
220 was surprised by cost growth at the group in
210
its results last week, which has led to a
£50m cut in UBS’s pre-tax profit forecasts to
200 £195m. UBS assumes that the firm will
190
retain its dividend, but sees a greater medi-
14 Feb 21 Feb 28 Feb 7 Mar um-term risk.
To appear in Best of the Brokers email your research to notes@cityam.com

Former Fannie Mae chief


Mudd facing SEC action
UK ECONOMY A Wells Notice is a letter from the

SEC that warns people or firms the


DANIEL Mudd, the former chief exec- agency is considering a civil action
utive of government-sponsored against them.
mortgage firm Fannie Mae, has Mudd said in a statement that he
received notice from US regulators will file a written response “that will
that he may face claims for allegedly make clear why the SEC staff should
misleading investors about the mort- not pursue any action in this matter”.
gage company’s exposure to sub- He said the financial disclosures
prime loans. under scrutiny had been “previewed
Mudd, who was ousted from by federal regulators, and have been
Fannie Mae in 2008 and is now chief issued in the same form since the
executive of hedge fund Fortress company went into government con-
Investment Group, confirmed he servatorship”
received a so-called Wells notice on Last month, the SEC filed a similar
Friday from the US Securities and notification to an existing Freddie
Exchange Commission (SEC), and said Mac executive and at least one former
he plans to rebut the allegations. Freddie Mac executive.

,". ,**+ # 1'-* ,*"& ,' ,! &0, $.$ "& 
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CITYA.M. 14 MARCH 2011 News 15

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with

firm’s operations in Europe, the Middle expansion of Russell’s European index firm’s private equity practice as a part-
Irwin Mitchell East and Africa. Fass joins Macquarie business, following the appointment of ner in London. Baldwin joins Ropes &
The national law firm has appointed Sue after ten years with Deutsche Bank in Scott Stark to the role of director of Gray from Jones Day in London, where
Weatherson as its new director of risk and London, serving in roles including Russell Indexes Europe. he was a partner in the corporate
compliance. Weatherson joins from Withers European head of Deutsche Bank’s group. Prior to that, he was a partner
LLP and will report to Irwin Mitchell’s national global banking division. Unicorn AM at Cadwalader, Wickersham & Taft.
managing partner, John Pickering. Weatherson Investment management company
will have overall responsibility for ensuring the Russell Investments Unicorn Asset Management has Saxo Bank
firm complies with its regulatory requirements The equity index provider has hired two appointed Fraser Mackersie as co-man- Saxo Bank Group has reappointed
and managing risk. She replaces partner Louise new associates to its EMEA index team. ager of its Free Spirit Fund. Mackersie Steen Jakobsen to the position of chief
Sykes, who will now lead Irwin Mitchell’s Wills, Gareth Parker has been appointed as has been promoted from the firm’s economist, after a period of two years’
Trust and Estate Disputes team. director of index research and design, Investment Team. absence where he worked at Limus
and Stephane Degroote has joined as Capital Partners. Prior to his departure
Macquarie Group agement services provider has appoint- regional director of sales. The new roles Ropes & Gray from Saxo in early 2009, Jakobsen was
The banking, investment and fund man- ed David Fass as chief executive of the have been created to support the Peter Baldwin is joining the global law with the firm for almost nine years.

To appear in CITYMOVES please email your career +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com

Labour party NEWS | IN BRIEF


Small business spared red tape
The government is expected to
announce plans to exempt small and

forces vote on medium sized businesses from a raft of


expensive regulations at the Budget on
23 March. The “small enterprise exemp-
tion initiative” would see firms with just
a handful of employees – most likely five
or less – exempted from a range of regu-

VAT fuel hike Jeremy Hunt said he had asked for independent advice from two regulators
latory burdens. Employees at these firms
would be unable to request flexible
working, for example, and could see
their maternity or paternity leave enti-
tlement cut. The government is hoping
that businesses will use the money they
save from not having to comply with the
“cost of living crisis” for middle onerous rules to take on new staff. But

POLITICS

Jeremy Hunt defends role


England, as it seeks to capitalise on the Labour’s shadow chancellor Ed Balls
BY DAVID CROW
biggest squeeze on real terms wages said the plans were “ideological clap-
LABOUR will this week force a House since 1920. trap” that threatened employees’ “work-
of Commons vote on reversing the Chancellor George Osborne has dis- life balance”.

in clearing News Corp bid


recent rise in VAT on fuel, in a bid to missed Labour’s calls for a reversal in
earn political capital from soaring fuel the rate of VAT on fuel, which rose Clegg: Lib Dems have kept soul
prices. from 17.5 per cent to 20 per cent in Deputy Prime Minister Nick Clegg yes-
Shadow chancellor Ed Balls yester- January, but Treasury insiders yester- terday told Liberal Democrats to hold
day said the party will use an opposi- day said there would be “help for hard- their nerve ahead of difficult local elec-
tion day debate on Wednesday to call pressed motorists” in the Budget on 23 tions and a key voting referendum

for an immediate reversal of the coali- March. POLITICS Hunt decided not to refer the bid whose outcome could strain the 10-
tion’s rise in VAT on fuel. Balls claims the government could BY DAVID CROW after News Corp offered to spin Sky month-old coalition. “These are testing
He admitted the surge in fuel prices fund the cost of reducing fuel VAT News off into an independent, pub- times for us as a party,” Clegg said as he
was happening because of unrest in with some of the proceeds from the JEREMY Hunt, the culture secretary, licly-listed company. closed a party conference in Sheffield.
the Middle East, which has pushed up bank levy, which will raise an extra was yesterday forced to defend his Yesterday Hunt dismissed sugges- He was speaking a day after 3,000
the price of oil, but insisted the chan- £800m after it was hiked last month. role in News Corp’s bid for BSkyB, tions he had waved the bid through demonstrators angry at government
cellor had scored an “own goal” by But Tory MP Matt Hancock, former- after an alliance of media companies to ensure Murdoch’s newspapers sup- spending cuts had protested outside the
raising VAT in January. ly an adviser to Osborne, said Labour accused him of acting in an “unprece- port the Tories at the next election as central city hall where party members
Balls is only calling for a reversal of had already spent the bank levy pro- dented manner”. “conspiracy theories”. were protected by a steel fence and a
the rise in fuel VAT, which would cost ceeds “ten times” over through various The alliance, which is made up of He added: “When James Murdoch phalanx of police officers. The party’s
the exchequer some £700m, but unfunded spending commitments BSkyB and News Corp rivals like BT came forward with his proposal to poll rating has more than halved to
refused to say whether Labour would and tax cuts. and the Telegraph Media Group, said hive off Sky News, I did something about 10 per cent since joining the
reverse the entire VAT hike were it in He said: “Ed Balls has missed yet the culture secretary was wrong not that I didn’t have to do. I asked for Conservatives in coalition. “Yes, we’ve
power. another opportunity to bring any cred- to refer the issue to the competition independent advice not from one reg- had to toughen up. But we will never
The Labour party has warned of a ibility to Labour’s economic policy. commission. ulator but from two.” lose our soul,” Clegg said.

 
    
80

    
  


 
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Business Features
16 CITYA.M. 14 MARCH 2011

| Entrepreneurs

How to cash in on other people’s junk


Donata Huggins speaks to the
entrepreneurs who sold £1.2m
worth of stuff on eBay last year
BET you have a cupboard’s worth of

I stuff that you could sell that you


haven’t got round to doing anything
about yet,” David Brackin says. “Most
people do.”
He’s probably right. This is how the
David Brackin (right)
and Fraser Pearce
(left) in their ware-
house in north-west
London
Cambridge maths graduates became eBay
entrepreneurs in 2004.
“We set up the business because both Picture:
Fraser and I weren’t working and we were Micha Theiner
looking for something to do, so we /City A.M.
thought we’d give this a try.” It turned out
that offering to auction off stuff on other
people’s behalf is very popular. “The con-
cept is so simple,” says Brackin. Indeed it
is. Their business, Stuff U Sell, sends a van
round to the customer’s house to collect
the thing they want to sell, packages it up,
take some good quality photos and puts it
up for auction on eBay. They take around a
20-30 per cent cut of profits to cover the Before turning their hands to online CV | DAVID BRACKIN CV | FRASER PEARCE
costs they incur, but they promise that auctioneering, the pair worked in
their service also improves the price the research and consultancy. Brackin says he
seller gets. “We are basically paid to take much prefers warehouse life to the corpo- Born: Bristol Born: Chesterfield, Derbyshire
the hassle of selling something off some- rate machine: “Sure, there’s no luxury cof- Lives: Earls Court Lives: Marlow, Buckinghamshire
one’s hands. It clearly works because the fee maker in the office and I used to drive Age: 36 Age: 36
majority of our new business comes around London in a van collecting things
through word of mouth – we don’t do myself, but it’s great to feel like you make Studied: Mathematics, Cambridge Family: Married with three children
much marketing.” a big difference to a business every day.” Drinking: The Vesper Studied: Mathematics, Cambridge
Pearce says that the business started Brackin and Pearce now have 16 staff and Reading: The Omnivore's Dilemma Drinking: Mojito
with a blank piece of paper from their their company churns £1.2m worth of
homes. “The idea required very little capi- stuff a year. Favourite business book: The Big Reading: The latest Harlan Coben
tal investment, so we thought we might as Pearce laughs: “It’s a great business. A Short: Inside the Doomsday Machine Talents: “Pianist and amateur chef
well give it a go and see how it worked out. lot of weird stuff comes our way. We by Michael Lewis (although not simultaneously).”
We were actually surprised by how quickly recently sold an 150-year-old printing First ambition : Air traffic con-
it took off.” The business shifted from press as a prop to the people making the
Motto: “Whilst we have time, let us
their homes to a warehouse within weeks. new Sherlock Homes film.” do good.” troller

Living up to your
company’s promise
Marketing guru Gary Moss knows how to
perfect your branding, says Donata Huggins

D
ELIVERING on your brand’s promise

2
might sound more fluffy than it is
useful. But you would be mistaken.
Customers’ perceptions of whether HAVE A (SIMPLE) VISION
or not your business is offering them what
they expected are bound to have an effect We’ve all heard people quote the “keep it
on profits. But how does one go about simple, stupid” catchphrase, but this is
measuring this sort of thing, not to men- vital for creating branding that customers
tion preventing it from harming your recognise, with a promise that they I solemnly swear always built from the inside out and

5
business? Marketing guru Gary Moss of believe your company delivers on. Moss to offer value for require cultural change.” Every branding
Brand Vista explains. says: “If you can’t say it in one line, it’s not money re-vamp should include staff training. Moss
worth having. And businesses should says: “Simply changing a logo and sending PLAY FAIR
never have more than four or five brand Picture: GETTY out new marketing materials never works.”

1
values.” Brand values should be straight- Sounds obvious, but always offer value for
forward, basic things such as low prices or money. No marketing or advertising will
BE BRUTALLY HONEST
4
high quality service. It all needs to be sim- ever trick customers into thinking your
ple and mean something to stick in the service is great. Your branding needs to
They say you have to be cruel to be kind. consumer’s mind. WATCH CLOSELY reflect the fact that you offer genuine value
This is especially true when it comes to for money.
marketing a product or service. Moss says Prevention is always better than cure.

3
you have to get brutally honest advice: “If Using surveys and regularly talking to cus-
something is rubbish, someone needs to tomers and staff are the simplest and most
say it is.” The business in question, he CHANGE FROM THE BOTTOM UP effective ways of catching your customers’
explains, needs to hear it more than any-
one else. This can only happen by asking Make sure all branding and marketing fac-
changing perceptions early. Media moni-
toring services take a more sophisticated Entrepreneurs:
your customers and staff for their opin-
ions as often as possible.
tors in the frontline staff – after all, they
deliver it. Moss says: “Brand values are
look at this, but cost around £20-25,000
for a year. now on Mondays
CITYA.M. 14 MARCH 2011 17

Wealth Management | Markets


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18 Wealth Management | Spread Betting CITYA.M. 14 MARCH 2011

THE TIPSTER
IBEX GETS
SKEWERED
Going for gold at the
T
BY MOODY’S
HURSDAY’S credit rating down-
grade by Moody’s for Spain did the
local equity market few favours and
while we may still be some way
Cheltenham Festival
above the 12 months lows of May 2010
when the Spanish stock index, Ibex, hit
8,562, the near term challenge will likely
be holding onto the psychologically signif-
icant 10,000 level. The current IG Index
price on the Spain 35 Daily cash is
10,395-10,400
Although insurers have had a great
few months, up 30 per cent since last
December, the latest news on the tsuna-
mi and earthquake that have just hit
Japan will not be welcomed by the sec-
tor. Japan is likely to be a big market for
many of the big insurers and they have
all taken a hit since the news has come
out.
Prudential has raised its dividends by
20 per cent on the back of operating
profits up 24 per cent to £1.9bn for
2010. However, this news from Japan
may have thrown a short term spanner
in its works. Capital Spreads quotes
722.1p-723.4p.
Financial services group Close
Brothers announced Friday that it was Study the going underfoot
selling its Close Brothers Offshore Group if you hope for a winning
for £29.1m to Kleinwort Benson. Close streak
Brothers will also update the market Picture: EMPICS
with its latest set of numbers on Tuesday
on the back of what has been a very
healthy six months for its shares, having
gained by some 30 per cent.
Any dips to the 825p-835p region
Four days of top racing gives a spread-betting opportunity, writes Ben Cleminson
could be used to buy some shares for
another run at 900p. Spread Co offers a

T
spread on Close Brothers of 863.9p- HE Cheltenham Festival is ner – is always a popular market as some races will need to be treated race win index, match bets and
866.7p. the biggest betting event of it provides an interest in every race with extreme caution. There are both jockey and trainer perform-
Craig Drake the year, and sports spread during the four days. Sporting always a number of hot favourites, ance. Match bets are excellent if
betting firms like Sporting Index’s spread is 330-340 which but they often get turned over and you have a strong opinion that one
Index, Extrabet and Spreadex means they are expecting total win- it would be no surprise to see some horse will do better than another.
always go to town at this meeting. ning odds of around 84/1 every day. upsets during the four days. A buy The firms will predict that one
With four days of top quality rac- Now, the racecourse has already at 340 therefore looks attractive. horse will finish x number of
ing, there are plenty of spread mar- started watering the track as they Winning distances (the distance lengths in front of another and you
kets to get your teeth into, some expect it to remain pretty dry next between the first and second horse) have the option to buy or sell that
lasting the entire festival and oth- week and that means the majority is another key market. Here, figure.
ers focusing on individual races or of the races are likely to be run on Extrabet quotes total winning dis- The key thing to remember is
performances. good or good-to-soft ground. tances at 102-110. It has probably that Cheltenham is a marathon not
Hopefully, some of you will be We all know how bad the weath- got that about right, although I a sprint and your positions can
lucky enough to sample the unique er has been this winter and the wouldn’t be surprised to see a num- change rapidly. There are plenty of
atmosphere of Prestbury Park this majority of key races have been run ber of close finishes this year and I opportunities for spread betters,
week but, if you’re stuck at your on soft or heavy ground. A number would be a seller rather than a but make sure you do your research
desk, fear not, there are plenty of of big meetings have also been buyer. and stick to your guns. Just because
opportunities to make money. abandoned, so the change in condi- The spread firms will go down one result goes against you doesn’t
Firstly, meeting SPs – the com- tions, and lack of match practice with their individual markets on mean you should change your
bined starting price of every win- for some, means that the form in each day and they will include the whole strategy.

THE WEEK AHEAD in association with

COMPANY NEWS COMPANY NEWS ECONOMICS NEWS POLITICAL NEWS


l Bovis Homes will announce its l The chocolatier Lindt & l On Tuesday, the Bank of Japan l Philip Hammond will be up in
final year results on Monday. They Spruengli will be eager for the will announce its decision on front of the Transport Select
are expected to be decent, with sweet smell of success when it interest rates. Currently Committee on Monday,
the company planning the resump- announces on Tuesday. Japan has the lowest answering a flurry of
tion of dividend payments. at 0.05 per cent. questions on the
l On Wednesday, Wacker Chemie recent adverse
l Also expect good news on divi- will announce. We will see if the l The UK’s ILO weather conditions.
dends on Tuesday. The German chemical company is in its ele- unemployment
automobile, motorcycle and engine ment. rate for January l On Monday and
manufacturing company will be released Tuesday, Ireland’s
BMW will announce l The global aviation on Wednesday. A new finance minis-
its results and is group Deutsche key indicator for ter Michael Noonan
expected to Lufthansa will hope to the health of the will meet his European
bump up divi- see soaring profits economy. counterparts at the
dend pay- when it releases its Ecofin conference.
ments to profits this Thursday. l On Wednesday, the Norges
€1.30 per Bank will announce on rates, while l The Federal Open Market
share. l On Friday, Jupiter the Swiss National Bank will do the Committee will meet on Tuesday. An
will announce its final same on Thursday. Both announcement will be made on
l G4S will also year results. Scandinavian countries have hinted whether QE2 will be wound up at
announce on The fund management that rates will rise soon. the end of June as planned.
Tuesday. The inter- group manages invest-
national security solu- ments for both private and l On Thursday, The Bank of l The University and College Union
tions group protects rock institutional investors. It will be England will publish its Inflation is planning for strike action across
stars and sports stars, people and banking on reporting a successful Attitudes Survey. Sober reading for Scottish universities over pension
property. year. sure. reform. A sign of things to come?
CITYA.M. 14 MARCH 2011 Wealth Management | Spread Betting 19

WHY ENGLAND
How to ride the price VS GERMANY
IS A WINNER
rollercoaster for profit TOM HOUGAARD
CONSULTING ANALYST, INTERTRADER

In one of an occasional series on spread strategies,


Craig Drake looks at the Relative Strength Index

T
HIS strategy hinges on using the TO TAKE A SHORT POSITION
Relative Strength Index (RSI) to l RSI rating should be a value greater ADMIT it. It’s an attention seeking title, playing on
alert you to over bought or over
sold market conditions, where
over bought and over sold situations sig-
nify a change in the trend. Typically,
when the RSI (see guide on the right)
than 70.
l A down candle should form and
close pushing the RSI rating to less
than 70.
l At that point, consider going short
I the emotions of every football fan in England since
1966. “England vs. Germany” is also a trading strat-
egy which seeks to play two stock indices against
each other. It is perfect for financial spread betting,
because you don’t have to factor in currency risk.
rises above 70, the market is over on the market price on the open of The FTSE 100 consists of 100 companies, of which
bought, while a reading below 30 repre- the next candle. 10 make up about 45 per cent of the index value. The
sents an over sold market. As a low-prob- German Dax consists of 30 stocks, representing the
ability/high-reward setup, with luck it creme-de-la-creme of German commerce and indus-
should eventually result in a big catch. try. Together, they are considered the two leading
At point A on the graph below, the stock indices in Europe.
market has fallen to a point where it Clem Chambers, the brilliant head of ADVFN and
may be considered to be undervalued even more brilliant technical analyst, taught me the
and may present an opportunity to buy. interplay between the two stock indices and how
At point B, the market has risen to the stocks are executed in block trades using volume-
point where it may be overvalued and weighted average price (VWAP). I realised that there
may present an opportunity to sell. is a statistical correlation between the two stock
indices significant enough to bet on.
TO TAKE A LONG POSITION I began to explore how to trade the two against
l RSI reading should be less than 30. each other in a straight arbitrage strategy, and came
l An up-candle should form and close up with the idea that if the two diverged by more
sending the RSI reading above 30. than 40 points from the previous night’s close, I
l At that point, consider going long on should short the one that was strong, and buy the one
the market price on the open of the that was weak.
The form in some next candle. Last Wednesday was a good example. The Dax
closed the night before at 7,164. The FTSE closed at
races will need to ANALYSIS l Over sold and over bought 5,974. Both indices were down about three to four
points on the day. On 9 March the Dax and the FTSE
be treated with 1.0300 $CAN
1.0200
B diverged by more than 49 index points. The Dax was
at one point up 53 points. At the same time, the FTSE
extreme caution. 1.0100
1.0000
was up only four points on the day. So I shorted the
Dax and bought the FTSE in equal amounts. The Dax
There are hot 1.9900
1.9800
closed at 7,131. The FTSE closed at 5,937. The spread
had gone from 1,243 points to 1,194 points. Although
1.9700
favourites, but 1.9600
1.9500
I did not capture all the 49 points on the table, it
serves to illustrate the strategy well.
they often get 1.9400
Now, let’s deal with “what can go wrong?” In one
sentence: where is your stop-loss? The answer is, you
1.9300 A
turned over and 1.9200
1.9100
can’t have a normal stop-loss. You have to use a mon-
etary stop-loss, and you have to be there to watch the
it would be no Nov 13th 25th Dec 17th 30th 2008 21st Jan 24th Mar 17th 27th
70
screen. In that sense, it is more suited to the short-
term traders of the City and beyond. Happy Trading.
surprise to see 60.0000 RSI
50.0000
The views and comments in this article are not the
views of InterTrader.com. The provision of this infor-
some upsets 40.0000
30.0000
30
mation should not be construed in any circumstances
as a recommendation or solicitation to buy or sell any
Source: GFT security or financial instrument.
Lifestyle
20 In association with CITYA.M. 14 MARCH 2011

| Travel

Ice chambers, wooden baths


and good health in Austria
Beatrice Aidin heads to the mountainousTyrol region to try out some of the
quirkier wellbeing experiences to be found in spa hotels there all the year round

I
T is the depths of winter in
Austria and what am I doing?
Gracefully skiing down the Alps
or snuggling up in front of a fire
sipping Gluhwien? No, I’m dressed in
my bikini and boots, awaiting instruc-
tions to go into a sealed chamber with
a temperature of minus 130 degrees
for three minutes. I smile nervously at
my companion Victoria, who has
accompanied me on this trip; I may
not have fully explained this element
of the invitation to sample the delights
of the Tyrol’s health resorts. A lady in a
white coat – how very appropriate –
tells us to go into the first chamber,
where our bodies can get used to the
temperature drop.
It’s fine, and we are giggling; we try
the second chamber and after 30 sec- to the Wiesenhof Hotel & Medical Spa
onds we are leaping around trying to on the shores of Lake Achensee, a pop-
increase circulation while not touch- ular destination for summer hiking
ing the walls – who wants their muf- during and winter skiing. Our first
fin top frozen to an ice-chamber? A activity is cross country skiing. Now it
booming voice tells us to conserve looks so easy, but after falling over a
energy for chamber three, into which dozen times I am becoming a little
we soon relocate for the longest three grumpy; who knew those skis were so
minutes of my life. The boom boom of darned narrow? Victoria is faring bet-
Eurotrash music seems to make the ter and our skiing instructor has the
experience last longer. I have never patience of a saint.
been so cold, and no surprise there – After two hours we give in and
this is actually colder than the North make our way back to the hotel, all
Pole. We last for the full three minutes rosy cheeked for a restorative hot
(I would have given up after two had it chocolate and a warm bath. Lunch is
not been for Victoria). We are let out, from the healthy buffet – lots of sal-
exhilarated and buzzed. ads, soups and the more hearty foods
We’ve come to the Tyrol to sample – but we know we have work to do.
traditional winter activities and some The Wiesenhof spa has the usual
of the more off-the-wall health and facials and massage treatments to be
beauty experiences that are increas- expected, but a large emphasis is put
ingly popular around here. These are on a healthy heart. There is a Cardiac
good diversions for the reluctant skier, Wellness Centre that sets up packages
and a draw in the warmer months too. to cater for those with heart disease or
After arriving in Innsbruck we head in recovery from cardiac operations.

A quiet haven of
pure luxury in
the Lake District
Nothing beats a beautiful house on the
edge of its own lake, writes Katie Hope

T
HE old idea of Lake District hos- Gilpin Lodge has been established as
pitality is of floral-decorated one of England’s finest country
B&Bs offering weak tea and a house hotels for over two decades.
couple of cellophane-wrapped The Lake House is its newest slice of
Jammie Dodgers after your long hike. lavish accommodation, a six-suite
Go to stay at the Lake House at lodge set on a four-acre private lake. It
Gilpin Lodge, however, and the simply exudes luxury.
biggest problem is working up the To get there, it’s a two hour train
resolve to leave its elegant surround- ride from London to Oxenholme,
ings to explore the fells. from where the Lake House is a 20
Managed by two generations of the minute drive.
Cunliffe family, whose ownership of As soon as you walk in, the hustle
the building dates back to 1919, and bustle of London life seems a mil-
CITYA.M. 14 MARCH 2011 In association with 21

The Wiesnhof hotel,


far left, and a wooden Travel Notes by Timothy Barber
bath in the spa, left.

YORKSHIRE FITNESS RETREATS CORNWALL’S FOOD FESTIVAL


IF you’re looking for some- Foodie fans will have the
thing to kick-start a spring chance to eat in some
fitness regime but don’t of Cornwall’s finest
fancy crowded exer- restaurants –
cise classes and including Nathan
stuffy lunch-hour Outlaw’s newly-
gym visits, you can anointed two
We’re leaping around trying to increase circulation find something a bit
more relaxing and
Michelin Star
restaurant at the
while not touching the walls – who wants their soulful with a break
in the Yorkshire
St Enodoc Hotel
in Rock – for the
muffin top frozen to an ice chamber? Dales. Natural
Retreats, which runs a
same price of £18
for three courses
I start in a special wooden bath that Apart from being extremely funny, We dine on salads, fish and, er, choco- handful of swish, remote across all the restau-
contains traditional Tyrolean Shale the benefits are serious; it’s said to be late covered crepes, washed down eco-cottages secreted into rants during Cornwall
oil, an oil that is derived from local able to help depression, rheumatism, with red wine. the countryside overlooking Spring Feast Fortnight.
rocks after thousands of years – it muscle spasm in multiple sclerosis, The following morning we put on the Swale Valley, has teamed up Starting this Friday, the food
smells mineral rich and lush. From and psoriasis, and it’s also used by our bikinis for one more session in the with outdoor exercise specialist Natural festival will see plenty of hotels involved,
the bath I can look out at the part- professional athletes to help increase Cryotherapy chamber before our Perspective to create some inspiring fit- including Olga Polizzi’s gorgeous Hotel
frozen Lake Achensee. performance. It works by shrinking flight. This time I wimp out and only ness weekends. Activities range from Tresanton in St Mawes, which hosts a
Next is the Sound Bed: I lie on a the molecules in the body – when make it to two minutes. Let me assure outdoor circuits to guided walks, chal- Wild Food Weekend from 25-27 March,
wooden bed, underneath which are one emerges from the chamber they you; whether it works on all the above lenge trails and flexibility workshops. with foraging and picnicking aplenty.
fifteen piano strings which the thera- expand, which increases blood flow, ailments or not, it does wonders for a And you get a healthy hamper. From Wild Food Weekend £400pp for double
pist strums on for half an hour. I am eases pain and swelling and fights red wine hangover. We are driven back £369pp, staring 25 March. See occupancy. www.tresanton.com.
out snoring after ten minutes. inflammation. down to Innsbruck looking and feel- www.naturalretreats.com for info. www.cornwallfoodanddrink.co.uk
Dinner is served by women in tradi- This is not for the weak-hearted, ing a good five years younger than
tional Austrian dirndls. In line with however, and a medical examination when we arrived, and feeling on top of
the wellness theme, it’s a lighter, is carried out first. the Alps. THINK ROOMS... with
healthier menu than you traditionally Feeling heady but giddy we go to
find in Austria. the luxurious Alpenmed swimming Three nights at Alpenmed Hotel Lamm Tirol,
The next morning, a half-hour car and spa area where we watch snow incl luxury half board, medical consultation,
journey up the mountains takes us to fall onto the glass roof. The luxurious Cryotherapy, massage and more from €477.
a more modern hotel spa, the swimming pool has Swarovski crystals www.alpenmedhotel.com.
AlpenMedHotel Lamm in Seefeld. It’s built into the base that light up when Three night Shale Oil Superior package at GRAND HOTEL EUROPA 5*
here that Victoria and I end up stand- the water jets start up. the Wiesenhof hotel from €412,
ing in our bikinis and quaking with We wrap up and take ourselves for a www.wiesenhof.at.
Südtiroler Platz 2 | Innsbruck | 6020
laughter having made it through the good walk around the village, and Easy Jet flies every Weds and Sat from Being Innsbruck’s only five star hotel, Grand Hotel
three minutes of Cryotherapy. head to the hotel’s sister restaurant. Gatwick to Innsbruck Europa has a prestigious status to live up to – and
it certainly doesn’t disappoint. Most impressive is
the way the super-stylish Italian designs blend
with cosy Tyrolean influences, particularly in the
hotel’s Europa Suites which are decked out with
It’s these kind of quirky touches 300-year-old wood from Tyrolean farmhouses,
that make the Lake House unique – creating a real Alpine atmosphere. Just gorgeous!
like the interior décor – each beauti-
ful suite has its own particular style –
it’s individual and personal. HOTEL WEISSES KREUZ
The Lake House also has its own Herzog-Friedrich-Strasse 31 | Innsbruck
spa, with large patio doors overlook-
ing the lake front and jetty, a 30ft | 6020
indoor pool and sauna, and there’s a Right in the heart of the Old Town, Weisses Kreuz
range of treatments you can enjoy in ensures a traditional flavour is added to your
the privacy of your room. Innsbruck stay. This historic building first operated
The food adds the magic additional as an inn in 1465 and its character and charm is
touch – but be warned it’s best to now perfectly combined with bright, modern and
leave a decent gap between the gener- comfy interiors. And being just a short stroll from
ous afternoon tea and the gorgeous all the city’s major attractions, we reckon you’ll be
five-course dinner – served in the hard-pushed to find a better Innsbruck base.
Lodge a mile down the road.
The menu picks the very best from
whatever is currently in season with a HOTEL WEISSES RÖSSL 3*
modern English twist providing dis- Kiebachgasse | Innsbruck | 6020
tinct and delicious food.
But the real secret to the pleasure Weisses Rössl is a traditional inn located in
of escaping here is the staff – warm the centre of Innsbruck’s Old Town. Family-run
and friendly, without any of the and lovingly renovated, there’s a wonderfully
lion miles away – it’s like walking have afternoon tea immediately, or stuffiness of many similar calibre relaxed ambience here. We love the hotel’s
through the wardrobe in one of C.S. after an amble around the grounds. hotels, they are the Lake House’s restaurant terrace in the summer too, a truly
Lewis’ Narnia books. A transition We opted for a preliminary stroll, and secret weapon. Nothing is too much peaceful spot surrounded by the historical
made even easier by the champagne a quick dip in the outdoor hot tub trouble, allowing you to completely buildings of the Old Town.
and melt-in-the-mouth homemade encountering no one but a solitary relax into the comfiest of surround-
biscuits which are offered as soon as duck and the unusual statues dotted ings.
you arrive. around, including a somewhat incon- Summer rates from £190 per month. To book your stay at any of these fabulous hotels, or to discover a whole world of other
The only quandary is whether to gruous but magnificent gorilla. www.glipinlodge.co.uk accommodation possibilities, visit LateRooms.com or call 0161 831 3894.
22 Lifestyle | TV& Games CITYA.M. 14 MARCH 2011

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK


TERRESTRIAL
6pm BBC News 6pm Eggheads 6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm BBC London News 6.30pm Royal Upstairs 6.30pm ITV News 6.30pm Hollyoaks 6.25pm OK! TV
7pm The One Show Downstairs 7pm Emmerdale: A furious Zak 7pm Channel 4 News 7pm 5 News at 7
7.30pm Bang Goes the Theory; 7pm Coast: The team explores confronts Derek at his home. 7.55pm 4thought.tv 7.30pm How Do They Do It? 5
BBC News the shoreline of Norway. 7.30pm Coronation Street 8pm Dispatches News Update
8pm EastEnders 8pm University Challenge 8pm The Lakes 9pm One Born Every Minute 8pm CHOICE The Gadget
8.30pm Panorama 8.30pm Raymond Blanc’s 8.30pm Coronation Street 10pm CHOICE The Event Show; 5 News at 9
9pm Waking the Dead Kitchen Secrets 9pm Law & Order: UK 11.05pm The Event 9pm FILM Chaos: Crime
10pm BBC News 9pm CHOICE 10pm ITV News at Ten 12.05am Music on 4: The Album thriller, starring Jason
10.25pm Regional News 10.35pm 10.30pm London News Chart Show: The View 12.40am THE SECRET WAR ON TERROR
The Secret War on Terror Statham. 2005.
Mrs Brown’s Boys 11.05pm Late Album Chart Show Introduces: The BBC2, 9PM
10pm Never Mind the 10.35pm Homes from Hell 11.15pm FILM Best of the
Kick Off 11.35pm The Graham Naked and Famous 12.55am Kings Part one of two. Peter Taylor explores
Norton Show 12.20am The Buzzcocks 11.35pm River Monsters of Leon: T4 Special 1.20am Rome Best: Martial arts drama, the intelligence war that has been
Apprentice USA 1.50am Sign Zone: 10.30pm Newsnight; Weather 12.30am The Zone; Wasn’t Built in a Day 2.15am Royal starring Eric Roberts. 1989. fought against al-Qaeda since
Silk 2.50am Imagine: Ray Davies – 11.20pm ICC Cricket World Cup ITV News Headlines Deaths and Diseases 3.10am Codex 1.05am SuperCasino 4am September 11, 2001.
Imaginary Man 4.05am Life in a Highlights 12.20am An Island 2.35am UEFA Champions League 4.05am The Bible: A History 5am How Not to Decorate 4.45am
Cottage Garden with Carol Klein Parish 12.50am BBC News Weekly 3am The Jeremy Kyle Show Without a Trace 5.45am-6.10am Nick’s Quest 5.10am Wildlife SOS
4.35am-6am BBC News 4am-6am BBC Learning Zone 3.55am-5.30am ITV Nightscreen Wogan’s Perfect Recall 5.35am-6am House Doctor

SKY SPORTS 1 BRITISH EUROSPORT 4.20am Four Weddings Steve: The Happiest Gay 5.30am-6am How Does That
SATELLITE & CABLE

6.30pm Sky Sports Years 6pm Champions Club 7.15pm 5.10am-6am Maury Couple in All the World Work?
7.30pm Live Football League Cycling 8.30pm Alpine Skiing 3.05am Reaper 3.45am The
10pm Sky Sports Years 11pm 9.30pm Live WTA Tennis BBC THREE OC 4.30am-6am Switched DISCOVERY HOME &
7pm Working Girls 8pm
Netbusters 11.30pm Soccer 11.15pm-12.30am Cycling
HISTORY HEALTH
AM 12.30am Football League Hotter Than My Daughter
7pm A Baby Story 8pm How THE EVENT
2am FIFA 2.30am Sports ESPN 8.30pm The Lock Up 9pm 7pm How the Earth Was Made
Clean Is Your House? 9pm CHANNEL4, 10PM
Unlimited 3.30am 6.30pm Talk of the Terrace How to Live with Women 8pm Pawn Stars 9.30pm Mud President Martinez and his chief of
Trauma Unit 10pm Untold
Watersports 4.30am Max 8pm Serie A 9pm ESPN Kicks: 10pm EastEnders 10.30pm 24 Men 10.30pm Pawn Stars staff charge the intelligence
Stories of the ER 11pm Critical
Power 5.30am-6am FIFA FA Cup 9.30pm ESPN Game Hour Panel People 11.05pm 11pm Warriors 12am Mud community with decrypting Thomas’s
Being Human 12.05am Family Men 1am Pawn Stars 3am Condition 12am Trauma Unit
of the Week 10pm Between satellite message.
1am Untold Stories of the ER
SKY SPORTS 2 The Lines 10.30pm Pardon the Guy 12.45am How to Live with MysteryQuest 4am Warriors
2am Critical Condition 3am
6pm Live Masters Tennis Interruption UK 11pm Live Women 1.45am 24 Hour Panel 5am-6am Ancient Discoveries
People 2.20am Hotter Than Real ER 4am Bringing Home
12am Boots ‘n’ All 1am Kings Major League Baseball 2am
of the Snow 1.30am World Baseball Tonight 3am ESPN My Daughter 2.50am Working DISCOVERY Baby 5am-6am A Baby Story
Golf Championship 2.30am Press Pass 3.30am Talk of the Girls 3.50am Being Human 8pm How Do They Do It?
Wonderful World of Golf Terrace 5am-6am WRC 4.45am-5.15am The Lock Up 8.30pm How It’s Made 9pm SKY1
Airplane Repo 10pm Dual 8pm Road Wars 9pm Ross
4am-4.30am PGA Tour
Classic SKY LIVING E4 Survival 11pm Monsters Inside Kemp 10pm A League of Their
7pm Ghost Whisperer 7pm Hollyoaks 7.30pm Friends Me 12am Bear Grylls 1am Own 11pm Mental 1am Miami
THE GADGET SHOW
SKY SPORTS 3 8pm Nikita 9pm America’s 9pm Glee 10pm Great British Deadliest Catch 2am SWAT 2.40am Glenn Martin,
CHANNEL5, 8PM
4pm Live Golf 9pm PGA Tour Next Top Model 10pm Bedlam Hairdresser 11pm Skins Weaponology 3am World War DDS 3.30am Lost 4.20am Four smartphones are put to the test,
Golf 10pm WWE 12am WWE 11pm Criminal Minds 12am 12.10am Scrubs 1.05am Two: The Complete History Guinness World Records Ortis Deley rides a road bike, and Suzi
1am-3.15am Live WWE: Late CSI: Crime Scene Investigation Accidentally on Purpose 3.50am Extreme Engineering Smashed! 5.10am-6am Sell Perry examines alarm clocks. Includes
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COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
   

SUDOKU KAKURO
26 16 8 6 41 3 22 23 
27 14

12 13
Place the numbers from 1 to 9 in each empty cell so that each 7  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 12 13 14
35 16
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 12 13
  
above or to the left of it. 37 12
You can only use the digits 1-9 28 
  and you must not use the
3 38
11 30    
same digit twice in a block. 18
    The same digit may occur 39  
24 10
    more than once in a row or
column, but it must be in a 8
21 14
11

6 17 4
   separate block.
16 17 
25 15
  29 28


    ACROSS DOWN
1 Apply stiffening 1 Forest god (5)
  
 WORDWHEEL C R
agent to cloth (6)
6 On the move (6)
2 Use water to
remove soap (5)
Using only the letters in the Wordwheel, you have 7 Passage through or 3 Fifty per cent (4)
  ten minutes to find as many words as possible,
T R under something (6)
4 Cocktail made of
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E 8 Chum (6) orange liqueur, lemon
juice and brandy (7)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E H 10 Cruz Beckham’s
older brother (5) 5 Prepared (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
T S 13 Animal doctor (3) 9 Customary
observance (4)
QUICK CROSSWORD 1 2 7 39 8 4 6
15 Wrongdoing (5)

O U T O F T U N E C
8 6 9 73 5 2 1 SUDOKU          18 Go on board (6)
11 Talked indistinctly (7)
1 3 9 7
         12 Bowling period in the
R E N G U
1 4 8 9 8 6 3 9 20 British naval hero (6)
A G A I N D R Y E R          game of cricket (4)
2 3 5 4 8 9 7 1 6
S I C U E P I
         21 Residential district,
S I N G E R A T I O 1 2 3 14 Integrate (5)
often run-down (6)
WORDWHEEL
I E D S         
5 4 8 3 9 6 1 7 2
S K I M P C O R G I          16 Monarch (5)
T N A I R E T
1 3 4 2 7 5 8 9 22 Heat (6)
        
A S C O T E S S A Y
8 9 2 1 The nine-letter word was 17 Cattle farm (5)
N U H E I 3 1 7 9 8 4 9 7         
T R E S I D E N T S 1 2 6 7 2 3 6 1
FRANCHISE          19 Recognise (4)
Punter
23

| Cheltenham Festival A to Z

There’s no
place like
Cheltenham
the massive representation from

A is for Atmosphere – The roar of


the tapes going up for the start
of the Supreme Novices’ Hurdle is
across the water, and in the last six
years their winning haul has been
9-10-5-7-9-7, so punters take heed,
enough to send shivers down the you ignore the boys in green at your
spine of the calmest of human peril.
beings. When the commentator
mentions the hot favourite “is
absolutely cruising” rounding the
home turn, the noise carries you
along.
J is for Jockeys – So fearless, so
brave and for 100 quid a ride.
Would you do it?

B is for Betting – More than 250


bookmakers will be setting up
their pitches on course in the vari-
K is for Kauto Star – A crowd
favourite, Kauto will be going
for his third Gold Cup and is aiming
ous enclosures, taking an aggregate to become the first horse older than
of around £1m per race. Add the
action in Britain’s 8,862 betting
shops, plus the telephone and
10 to win the race since 1969.
S is for Shopping – 80 stands can be
found in the Tented Village,
selling everything from wellies to
online business, and it is estimated
that in excess of £600m will be
wagered on the 27 races over the
L is for Ladies Day – Wednesday is wine, silverware to Spanish proper-
for the fairer sex, and 5,000 ties, books to binoculars. You could
goody bags will be given away to the even treat yourself to a hand-made
four days. Who says we are in a ladies, who will also be able to par- rocking horse.
recession! ticipate in a Fashion Awards cere-
mony, when prizes include annual

C is for the Craic – No better way to


celebrate what the Irish call the
membership at a local spa.
T is for Tweed – Royal Ascot has its
Morning Dress and posh frocks,
but the NH Festival is all about
bonhomie than with a bottle of
bubbly, and 20,000 empties will be
heading for the bottle bank come
M is for The Manager – Both Sir tweed suits for the men, and includ-
Alex Ferguson (Man United) ed in the Fashion Awards’ prizes is a
and Harry Redknapp (Spurs) have ladies coat from the Cousins Tweed
Friday night. runners during the week, and, Collection.
together with the BBC’s John
Motson, they rarely miss the chance

D is for Don’t Drink and Drive – The


police will be waiting for you
on all the surrounding roads, so,
to switch off at the Festival.
U is for Umbrellas – Hope we won’t
need them, but the long-term
forecast suggests that if we leave
unless there is a teetotaller in your
party, hire a chauffeur. N is for Nightmare – The loos, espe- them behind on the Friday we
cially the ladies, where the might look like “the wally without
bladders are tested to their limits as the brolly.”
the queues stretch half-way to

E is for ‘Ell – As one jockey once


described the famous
Cheltenham hill. It might seem like
Cleeve Hill.

V is for View – Prestbury Park is one


of the most beautiful racecours-
heaven at the start of the ascent,
but it’s a brutal climb from the last
obstacle to the top, and so many
O is for Outsiders – Be prepared for es in the world. Whether you’re on
the odd surprise package - the balcony of a fifth floor box, or
favourites don’t always win, slumming it in the ring, the view is
dreams have been shattered in remember Norton’s Coin silencing simply breathtaking.
those tortuous final 100 yards. the packed stands when landing
the Gold Cup at odds of 100-1 in

F is for Freebies – Plenty of hand-


outs at the gate through the
1990.
W is for Winner’s Enclosure – The
most hallowed place in jump
racing, and a crescendo of noise
week, with 1,000 special Centenary
Bowler Hats given out to the first
racegoers through the gates on
P is for Paddy’s Day – Thursday is greets every successful jockey, who
the day when the Irish cele- will celebrate with a victory salute
brate St Patrick, and the shamrocks or a punch of the air as he enters
tomorrow. will be out in force with Irish the number one spot.
WEDNESDAY
WEDNESDAY 16TH MARCH 15:20PM
M
dancers entertaining in the enclo-
sures, and, doubtless, the odd ren-

G is for Guinness – There is no race-


course in the world where you
will see more of the “black stuff”
dering of Danny Boy!
X is for X-rays – Jockeys accept that
falling is part and parcel of the
job, but let’s just hope that there
EVENS
AN ENGLISH TRAINED WINNER
consumed, and 220,000 pints of
every Irishman’s favourite tipple
will have been downed come close
Q is for Queen’s Hotel – The most won’t be any need for the x-ray
famous hostelry in the town machine to be used during the week.
and down the posh end, where EVENS
of play on Friday. champagne costs an arm and a leg
but the craic is so good that if
you’ve backed a winner or two, who Y is for You know it makes sense –
Where else would any fan of
AN IRISH TRAINED WINNER

H is for Helicopters – 650 “chop-


pers” are expected to land dur-
ing the week, making it the busiest
gives a Donald! jump racing rather be for these four
days in March. Keep up to date with all the latest news views and special offers for the

temporary airfield anywhere in the


country, and that includes Ris for Ruby Walsh – Top jockey at
the meeting for the last three
Silverstone on British Grand Prix years, and he is favourite to retain Z is for Zara Phillips – Rarely miss-
es a Festival, and the Queen’s
Cheltenham Festival with our dedicated microsite.
Visit www.victorchandler.com/cheltenham for details.

day! his crown. You can rest assured that eldest grand-daughter might need
the Kaiser Chiefs to back a winner with her wedding victorchandler.com/cheltenham
victorchandler
r..com/cheltenham
hit “Ruby, Ruby, Ruby” will be bel- to England rugby captain Mike

I is for the Irish – Cheltenham lowing over the tannoy if he suc-


would not be the same without ceeds.
Tindall taking place at the end of
July.
24 Punter | Cheltenham CITYA.M. 14 MARCH 2011

Murphy hoping to make


it Big at the Festival again
Bill Esdaile catches up with Irish trainer Colm Murphy unknown quantity Raise The Beat is cer-
tainly not without a chance in the
Champion Bumper. However, Quito De La
on the eve of the Cheltenham Festival Roque will only run in the RSA Chase if
the rain arrives. Murphy tells me that his
potential star of tomorrow will travel over,

C
olm Murphy trains 50 horses in ago and you are only one mistake from but definitely won’t take part unless the
Ballinadrummin, Killena, Gorey – an hitting the deck again. However, we’ve word ‘soft’ appears in the going descrip-
address more Harry Potter than Dick mirrored last year’s routine and its tion. One feels that the word ‘soft’ would
Francis, but apparently it’s in the gone well – if it ain’t broken it doesn’t never appear in any description of his
heart of County Wexford. We didn’t meet need fixing.” trainer.
face-to-face and only spoke on the phone – The eerily calm Murphy Murphy is set to stay in the
he was too busy finalising his Festival plans acknowledges that this will same B&B he stayed at last
and I couldn’t find platform nine and three almost certainly be Big year with his partner
quarters. Zeb’s last year at the Louise and doesn’t yet
The former amateur rider, who has a top level and the pair, know whether he’ll be
degree in accountancy, is no stranger to with two other stable- travelling home on
Cheltenham success, with three wins mates, will have Wednesday night.
already under his belt, and his Big Zeb is begun their journey “Cheltenham is the last
looking to defend his crown in across the Irish Sea place on earth I want to
Wednesday’s sportingbet.com Champion by the time you read be if things go pear-
Chase. this. “We’ll leave the shaped on Wednesday.
As the name may imply, Big Zeb is big. yard at about 6pm on I’ll be the first to leave
He is 16.3h (that’s 16 hands and 3 inches Sunday night, drive for the course if they do.”
measured from the highest point of the about an hour to the However, if any of his three
withers, where the neck meets the back). port, then make the cross- runners are successful, he
Named after his owner Patrick Redmond ing in around three-and-a-half won’t be in quite such a hurry. I
(nicknamed ‘Big Zeb’), he (the equine ver- hours. That means we should asked him if there was any particu-
sion) is apparently “very shy” and “doesn’t arrive just before 1am and reach lar bar, restaurant or club he’d be visiting
really enjoy the big occasion. He just gets Cheltenham by 5.30am.” I will never com- if they were to toast success. He told me
on with the job.” Well, he has got on with plain about my 90-minute drive to the it’d be easier to list those they won’t visit.
the job pretty well so far in a career that Cotswolds again. “We’ve had plenty of success, but
has seen him win 24 races and over Murphy and his team will spend every wouldn’t have had that success if we had-
£500,000 in prize money. minute of the pilgrimage with the horses, n’t been lucky enough to be sent good
“He’s in grand order,” Murphy assures that is except for the actual ferry crossing Grade One horses in the first place,” says
me. “Things have gone a lot smoother itself when nobody is allowed down below. an unbelievably grounded Murphy in
than last year when we had all kinds of Yet, that’s not a worry as the horses are “as answering how important Cheltenham is
problems after Sandown. I’m really calm as anything and have done it all to a man who has only been training for a
happy with him.” There is almost a tone of before”. It all means that the meticulous decade.
confidence in his voice, but he is certainly trainer can exercise his string when they Success on National Hunt racing’s
not complacent. “He is a year older, a reach Prestbury Park and they won’t miss biggest stage certainly fills the boxes,
year wiser and I’m not going to tempt fate out on their routine. which in turn pay the bills. It’s as simple
by saying that he is a better jumper,” he All three runners are scheduled to strut as that. Is it really life or death? Of course
continues. “He fell in this race two years their stuff on Wednesday and the stable’s not, it’s much more important than that!
Sport
25
GRAND SLAM IS STILL ALIVE
BUT JOHNSON FAR FROM HAPPY
ENGLAND EDGE PAST SCOTS BUT BOSS
NOTES ROOM FOR IMPROVEMENT: P26

More cup woe for Grant SPORT | IN BRIEF


Basketball gets 2012 vote
OLYMPICS: Great Britain’s
men’s and women’s basketball
teams have been given the go-
We’re really happy to get it.”

Aussies into last eight


CRICKET: Holders Australia
ahead to compete at the advanced to the World Cup
STOKE CITY 2 London 2012 Olympics. GB
and Chicago Bulls star Luol
quarter-finals after an unin-
spiring 60-run Group A victo-
Deng said: “I'm really excited. ry over Kenya.
WEST HAM UNITED 1
Results

FOOTBALL
BY FRANK DALLERES :I@:B<K J:FKK@J?:LGJ@OK?IFLE;
@::NFIC;:LG$>iflg89Xe^Xcfi\ Ç ;le[\\Lk[%%(  ) Dfk_\in\cc%%%(  )
WEST HAM manager Avram Grant 8ljkiXc`X*)+$-mB\epX)-+$-%8ljkiXc`X >ff[n`cc`\+' Jlkkfe(#.)
saw another promising cup cam- )gkj Y\XkB\epXYp-'ilej%>iflg8 ;Xcp.* 8kk1.#*,/
DldYX` ÇE\nQ\XcXe[*,/$-9 @em\ie\jj:K%%%%%% G :\ck`Z%%%%%%%%%%%%%%%%%%  G
paign reduced to shreds – and then
DZ:lccld('( m:XeX[X)-($0%E\n :CP;<J;8C<98EBGI<D@<IC><
borrowed from samurai culture to Q\XcXe[)gkj Y\Xk:XeX[XYp0.ilej% IXe^\ij%%%%%%%%(  ) B`cdXiefZb%% '  (
explain his disappointment at deci- ;`fl]*/# ?Xd`cc-(g\e 
sions he felt cost his side a trip to =FFK98CC :cXeZp/.f^ 8kk1+)#+(.
Wembley. K?<=8:LGJ@OK?IFLE; IL>9PC<8>L<
Danny Higginbotham’s second-half DXe:`kp%%%%%%'  ( I\X[`e^%%%%%%%%% '  '
I`Z_Xi[j.+ 8kk1+(#(,' <E>8><JLG<IC<8>L<
free-kick clinched victory in the FA Jkfb\%%%%%%%%%%% (  ) N\jk?Xd%%%% (  ( ?l[[\ij]`\c[%%%%%% ,' 9iX[]fi[%%%%%%%%%%%%%%% (-
Cup quarter-final after Hammers ?lk_() G`hl`fee\*' ?lccBI%%%%%%%%%%%%%%%+' :iljX[\ij%%%%%%%%%%%%%))
striker Frederic Piquionne had con- ?`^^`eYfk_Xd-* 8kk1)+#,,' N`^Xe%%%%%%%%%%%%%%%%%%(+ ?lcc%%%%%%%%%%%%%%%%%%%%%%%% ()
troversially cancelled out Robert EGFN<I:?8DG@FEJ?@G IL>9PLE@FE
Huth’s early header for Stoke. It :Xi[`]]%%%%%%%%%%%(  ) 9Xiejc\p%%%%%%% (  )
might have been worse had Robert N_`kk`e^_Xd)( >iXp)0#/0 I9JJ@OE8K@FEJ
B\`eXe/* 8kk1)*#'-, <e^cXe[%%%%%%%%%%%%%% )) JZfkcXe[%%%%%%%%%%%%%%%% (-
Green not kept the visitors in the
game by saving Matthew Green tried in gave fouls, a penalty, everything for Huth was more accurate, meeting
Etherington’s penalty. vain to prevent them. It was a penalty for us at the a Rory Delap long throw in the 12th email sport@cityam.com
But Grant was angry at James Higginbotham’s end which he didn’t give. What hap- minute to open the scoring.
Tomkins being denied a late penalty free-kick creeping pened with Tomkins was more bushi- Piquionne levelled when he brought
and suggested referee Mike Jones had over the line do. Maybe he felt guilty. I think it was down Thomas Hitzelsperger’s long
been trying to compensate for miss- the effect of the first goal for us.” ball, seemingly with his arm, and
ing Piquionne’s handball in the Picture: Defeat spelled the end of West lobbed goalkeeper Thomas Sorensen.
build-up to his equaliser. GETTY Ham’s hopes of salvaging silverware Etherington earned the chance to
Referring, somewhat obscurely, to from an otherwise difficult season, restore the home side’s lead when he
the Japanese word bushido, denoting having also enjoyed a lengthy run in won a penalty, but was denied by a
the code of honour observed by the Carling Cup, only to lose out in smart save by Green. The goalkeeper
samurai warriors, Grant said: “I think the last four. They might have forced could not stop Higginbotham’s pow-
maybe this is the reason the referee a replay had Matthew Upson’s late erful low free-kick, however, which
started the second half very strange. header been a fraction lower and not snuck through the wall and crept
Until they scored [the second] goal he rebounded off the Stoke crossbar. over the line despite Green’s touch.

Richards proves he’s City’s head boy as old


rivals United loom in Wembley showdown
clash against Manchester United after
SEMI-FINAL DRAW
MANCHESTER CITY 1 the draw had earlier paired the derby
rivals together. Manchester City v Manchester United
Reading, who had beaten Premier
Bolton Wanderers v Stoke City
READING 0 League Everton in the last round, had
their goalkeeper Alex McCarthy for
keeping City at bay until quarter of Both matches will be played at Wembley on
an hour from time, but manager

FOOTBALL the weekend of 16 and 17 April.


BY JAMES GOLDMAN Brian McDermott was proud of his
side’s efforts.
ENGLAND defender Micah Richards He said: “They [the Reading players] Betting (odds from Paddy Power):
was the hero as his header booked can compete against the best teams in 11/10 Manchester United
Manchester City’s first Wembley the country, you can see that. 9/4 Manchester City
appearance for 12 years. “Everybody who’s seen that game 5/1 Bolton
Richards powered home the win- today would say maybe we were a lit-
ner from David Silva’s corner 16 min- tle unfortunate not to get the result. 6/1 Stoke
utes from time to secure an If we can do that on a stage like this,
eagerly-awaited FA Cup semi final we can do that anywhere.”

Wenger: Season’s not over, it’s still so exciting


losing key players with every passing

FOOTBALL TIMELINE | ARSENAL UNRAVEL


BY FRANK DALLERES match, defender Johan Djourou
becoming the latest victim with a dis- 27 Feb Lose Carling Cup final 2-1 to
ARSENAL manager Arsene Wenger located shoulder, yet the Frenchman Birmingham and lose Van Persie to injury
insists his demoralised team’s season remains hopeful of winning the
is not slipping away, despite seeing Premier League. 5 Mar Held 0-0 by Sunderland, missing
them tumble out of a third competi- “My biggest task is to lift the chance to move to within a point of lead-
tion in a fortnight at Old Trafford on players for what lies ahead. We ers Man Utd, with a game in hand
Saturday. have a massive task now but the 8 Mar Knocked out of Europe by
A 2-0 defeat to Manchester United challenge we are aiming for now
ended their hopes of lifting the FA is so exciting,” said Wenger. Barcelona; Szczesny seriously
Cup, hot on the heels of their elimi- “I believe we can do it and I injured, Fabregas hurts hamstring
nation from the Champions League don’t feel like the season is slip- 12 Mar Exit FA Cup in 2-0 defeat at
at Barcelona and a farcical Carling ping away. We are used to being Man Utd; Djourou injured and ruled
Cup final loss to Birmingham. questioned. We have to show we out for season
To make matters worse, Wenger is are strong enough to deal with it.”
26 Sport CITYA.M. 14 MARCH 2011

RBS 6 NATIONS

Touching distance
ROUND-UP

Parisse: Twickenham
loss fired Italy heroics
OVERJOYED Italy captain Sergio
Parisse has revealed the pain of a
crushing defeat to England was the
inspiration behind their landmark
RBS 6 Nations triumph over France on
Saturday. Grand Slam just one win away after England
Italy bravely fought back from 12
points behind to win 22-21 in Rome survive a scare to defeat tenacious Scotland
and achieve arguably their greatest
ever result in the competition. And
Parisse admitted the sheer desire they
displayed was forged in the thrashing RBS and territory England went in at
the break on level terms at 9-9 and
they received at Twickenham last 6 NATIONS only managed to cross the try line
month. once John Barclay had been harsh-
“Our home defeats against Ireland BY JAMES GOLDMAN ly sent to the sin-bin.
and Wales were disappointing,” said England failed to build on substi-
Parisse, who plays his club rugby in
Paris with Stade Francais.
ENGLAND 22 tute Tom Croft’s score and a tense
finale was set up by a superb piece
“But it was our heavy loss to of individualism from Scotland
England that gave us an extra motiva-
tion to show that we are a better team
SCOTLAND 16 wing Max Evans,
Wilkinson’s trusty boot secured
before

than our performance at the Calcutta Cup. But Johnson was


Twickenham suggested.” ENGLAND manager Martin unimpressed by the way his side let
Johnson admits major improve- Scotland back into the contest.
ment is needed if his side are to “They were fatigued and down
Controversial Wales complete the Grand Slam in
Dublin next weekend.
Scotland put up brave resistance
to 14 men at one point and we did
everything but score a try in that
period,” he said. “When we finally
try sickens Ireland at Twickenham yesterday but even-
tually succumbed to Tom Croft’s
did get over we let them straight
back in. We didn’t get it right often
try, the boot of Toby Flood and his enough.
IRELAND winger Keith Earls has second-half replacement Jonny “Everyone was talking about it
joined his team-mates in condemn- Wilkinson. all week. They were hurting and
ing the wrongly awarded try that cost The Red Rose will complete an desperate and they came out fight-
them victory and handed Wales a 19- RBS 6 Nations clean sweep for ing and to battle. At times they
13 win in Saturday’s RBS 6 Nations the first time since 2003 won that battle because we
clash. with a win over weren’t good enough at
Mike Phillips’ 50th-minute touch- Ireland at the Aviva the breakdown.”
down was allowed to stand despite Stadium on Johnson could be
three offences in the preceding line- Saturday, but without captain Mike
out, and it proved decisive as the Johnson is aware Tindall in Dublin after
hosts ended on top at the Millennium a repeat of yester- the centre left the fray
Stadium. day’s perform- at half-time with an
Ireland captain Brian O’Driscoll ance against injury to his left foot.
was quick to deride the contentious Scotland will yield The Gloucester star
decision after the game, calling it nothing but disap- left Twickenham in a
“unforgivable” and “a massive pointment. protective boot and was
momentum swinger”, and Lions star He said: “We’ve got to due to undergo precautionary
Earls echoed his skipper. be better than that. The second X-rays.
“The try was controversial. It’s bad half was a strange one. It was a bit Johnson said: “There are a few
to lose, but when you lose like that, disjointed and we just couldn’t battered bodies about. It was a pret-
it’s sickening. It’s heart-breaking. knock them out. It felt like the ty tough game. Croft powered over for
“The rules state you can’t take a longest game of all time and it was “But it was not a bad game for us England’s only try
quick line-out with another ball. always tough. to go into next week. When every-
There were six points in the game “We were clearly a little bit off it one is telling you how good you are Pic: ACTION IMAGES
and with the conversion, the try but they probably knocked us out it can leak in a little bit. We’ve got
meant seven points, so it was a big of our stride a bit. We talked about lots to be better at. We’ll be in a
factor in the result. the breakdown all week and we fight next week. We know we can
“We talked about it at the time, had too many turnovers in the play a lot better than that.
asking what happened. When we first-half.” “We’ve got to make sure we are a
found out, it was sickening.” Despite dominating possession bit smarter the next time we play.”
CITYA.M. 14 MARCH 2011 Sport 27

Mancini: We’re underdogs

SPORT
FOOTBALL
KEY MOMENTS


FOOTBALL Championship side Reading.
BY JAMES GOLDMAN But the Italian insists it will be
next season before big-spending City
MANCHESTER CITY manager can really regard themselves as
Roberto Mancini is relishing his United’s equals.
side’s FA Cup semi-final against “It is a great semi-final,” he said.
Manchester United, but insists his “We are very close with all the top

56 mins: Scotland flanker John Barclay was


side will be considerable underdogs.
Under Mancini City have suffered
squads but we need to improve more
and maybe next year we will be at
GRANT SLAMS REF
dispatched to the sin-bin for attempting to
wrestle the ball free from an attacking
four agonising defeats to the men
from Old Trafford, the latest coming
the same level.
“But it is important that we AS HAMMERS
England player on the Scotland five metre line.
It looked a little harsh and it proved to be a
last month when Wayne Rooney’s
overhead kick settled matters.
played a good game at Old Trafford
last time and we have a chance to CRASH OUT: P25
turning point in the game. Mancini’s side have an opportuni- win, like them.
ty to redress the balance at Wembley “Revenge is the wrong word. Every
next month after Micah Richards’ year in football you can meet your
73rd-minute winner knocked out opponent, two times minimum.”

65 mins: With under a minute of Barclay’s sin-


bin remaining, Ben Foden skipped past Chris
Paterson and England piled back across the
pitch. Mark Cueto sucked in a couple of
defenders and offloaded to Tom Croft who
smashed straight over the top of Dan Parks.

Full-time: Max Evans’ try, the result of a


superb piece of improvisation, set up a tense
finale, but Jonny Wilkinson’s penalty settled
matters. England captain Mike Tindall then
received the Calcutta Cup from him future
mother-in-law The Princess Royal.

RBS 6 NATIONS
TEAM PLD W D L F A PTS
England 4 4 0 0 124 57 8
Wales 4 3 0 1 86 61 6
France 4 2 0 2 89 82 4
Ireland 4 2 0 2 69 73 4
Italy 4 1 0 3 62 117 2
Scotland 4 0 0 4 61 101 0

Binocular won’t defend


Champion Hurdle crown

HORSE RACING normal parameters he required a fur-


BY JAMES GOLDMAN ther treatment the following day.
“As we were getting close to the
BINOCULAR will not defend his most important race of the year and
Champion Hurdle crown at the also because since that administration
Cheltenham Festival tomorrow after to Binocular another horse had tested
trainer Nicky Henderson was forced positive for the same substance, I
to withdraw his charge yesterday. thought it prudent to take a precau-
On British Horseracing Authority tionary test which surprisingly, let
advice, Henderson was forced to with- alone devastatingly, has also
draw the JP McManus-owned shown to be positive.”
seven-year-old after he tested pos- The current champion
itive for a legal substance having had been heading the
been treated for an aller- ante-post market at
gy. around the 7-2 mark
Henderson just hours before yester-
said: “He had day’s declaration time.
an allergy Last year’s Supreme
two weeks ago that did Novices’ Hurdle victor
not respond to initial Menorah now heads a field
medication and on veteri- of 11 for the highlight of
nary advice and well within the first day.