Markets live chat transcript for the chat ending at 11:44 on 19 Aug 2009. Participants in this chat were: Paul Murphy (PM) Bryce Elder (BE)
PM:
Hello there
PM:
It’s 11.02
PM:
The unadvertised time for Markets Live
PM:
Sunny day in London.
PM:
Not the weather to be stuck in front of a terminal.
PM:
PM:
Bryce is with me today.
BE:
Hello
PM:
Short session warning.
PM:
It’s mid august – so we are just doing half an hour.
BE:
Also, Tracy’s ill
PM:
and Izy’s at home, looking after her boyfriend – who fell off his mountain bike.
BE:
Is he 15 or something?
PM:
Er, no
PM:
At least i dont think so
PM:
He was on some corporate freebie in Yorkshire.
PM:
Badly dented I hear
BE:
The bike?
PM:
No, head – but he’s on the mend.
PM:
Anyway, our “pre-grad” Masa is here.
PM:
And there’s Stuart, the intern for the week.
PM:
And Bryce and myself.
PM:
And nothing to write about.
BE:
That’s not true.
BE:
We’ve got the great de-coupling story.
BE:
On Monday Wall St tanked, so London rallied yesterday.
BE:
Overnight Wall St snapped back – up almost 1 per cent.
BE:
So London has tanked this morning
BE:
Inverse correlation.
PM:
We’ve become correlated with China instead
PM:
Actually, Shanghai fell 5 per cent at one point overnight.
BE:
China’s officially in a bear market, apparently
BE:
Down 20% from August 4th
PM:
(SilverFox — Tracy is our artist in residence)
PM:
Izy did a good post earlier on Stephen Green explaining the Chinese worries.
PM:
Bascially, the problem is that in order to meet command economy targets for revenue growth, Chinese firms are paying back state funds in the form of inflated taxes
PM:
so it looks like they hit their targets
BE:
that’s a rumour, not a fact
PM:
china take
The Truth! Unvarnished. The price of rice always falls. Shanghai investors do not sell stocks. Torch protestors are vile.
BE:
We need some proper research on China
BE:
Not just your prejudices, Murphy
PM:
So what have you got?
BE:
Goldman Sachs
BE:
Fiona Lake put a snap note out
BE:
The Chinese authorities have successfully managed to jump start growth through the continuation
of the aggressive monetary and fiscal stimulus delivered in the final quarter of last year. Strong
sequential growth momentum and perceived rising inflation risks point to the need for Chinese
policymakers to consider removing the current degree of policy accommodation. We expect a
50bp hike in the reserve requirement ratio (RRR) in Q4 of this year and three 27bp hikes in the 1-
year lending rate through 2010
of the aggressive monetary and fiscal stimulus delivered in the final quarter of last year. Strong
sequential growth momentum and perceived rising inflation risks point to the need for Chinese
policymakers to consider removing the current degree of policy accommodation. We expect a
50bp hike in the reserve requirement ratio (RRR) in Q4 of this year and three 27bp hikes in the 1-
year lending rate through 2010
PM:
Ah give us more of that
BE:
Tightening to start in earnest in Q4
Signs are emerging that the Chinese authorities are starting the process of moving away from the
incredibly easy monetary policy stance in place at present. In July, the People’s Bank of China
(PBOC) initiated a moderate liquidity withdrawal and mild window guidance. In our view, the Q3
GDP data is likely to provide enough evidence for the Chinese authorities to start that process, and
shift into meaningful tightening in 2010 on the back of stronger growth and higher inflation.
Specifically, we expect a 50bp hike in the RRR in Q4 and a further 150bp increase in the RRR
through 2010 bringing the RRR back to its highs in mid 2008 (note that the RRR was not reduced
aggressively through the easing cycle). Turning to interest rates, we expect the 1-year lending rate
to rise from 5.31% at present to 6.12% by the end of next year, in three 27bp clips.
Signs are emerging that the Chinese authorities are starting the process of moving away from the
incredibly easy monetary policy stance in place at present. In July, the People’s Bank of China
(PBOC) initiated a moderate liquidity withdrawal and mild window guidance. In our view, the Q3
GDP data is likely to provide enough evidence for the Chinese authorities to start that process, and
shift into meaningful tightening in 2010 on the back of stronger growth and higher inflation.
Specifically, we expect a 50bp hike in the RRR in Q4 and a further 150bp increase in the RRR
through 2010 bringing the RRR back to its highs in mid 2008 (note that the RRR was not reduced
aggressively through the easing cycle). Turning to interest rates, we expect the 1-year lending rate
to rise from 5.31% at present to 6.12% by the end of next year, in three 27bp clips.
BE:
This implies a faster tightening trajectory this time around compared to the early stages of the
2003-2004 episode largely due to our view that growth will be stronger through 2010 than it was
in 2004 and inflation will pick up quickly.
2003-2004 episode largely due to our view that growth will be stronger through 2010 than it was
in 2004 and inflation will pick up quickly.
BE:
Rates market already discounting some tightening
The heightened focus on the prospect of tightening in China materialised from the surprise reissuance
of 1-year Central Bank Notes which occurred on July 7. This coupled with the rise in the
7-day repo rate on the back of recent IPOs caused bond yields to rise sharply. Swap rates, which
have been drifting higher all year also shifted upwards on the back of the same data.
The heightened focus on the prospect of tightening in China materialised from the surprise reissuance
of 1-year Central Bank Notes which occurred on July 7. This coupled with the rise in the
7-day repo rate on the back of recent IPOs caused bond yields to rise sharply. Swap rates, which
have been drifting higher all year also shifted upwards on the back of the same data.
BE:
We expect a 50bp hike in the RRR in Q4 and a further 150bp tightening in the RRR through 2010.
Turning to interest rates, we expect the Chinese authorities to hike the 1-year lending rate by three
lots of 27bp through 2010, one hike in the first half and two hikes in H2. The survey of forecasters
published by Consensus Economics reports that 27bp-worth of tightening is likely by next August,
leaving our rate view in line with consensus. Outside of higher RRR and interest rates, China is
also likely to tighten policy through quantitative measures in 2010 mirroring the policy strategy in
the past.
Turning to interest rates, we expect the Chinese authorities to hike the 1-year lending rate by three
lots of 27bp through 2010, one hike in the first half and two hikes in H2. The survey of forecasters
published by Consensus Economics reports that 27bp-worth of tightening is likely by next August,
leaving our rate view in line with consensus. Outside of higher RRR and interest rates, China is
also likely to tighten policy through quantitative measures in 2010 mirroring the policy strategy in
the past.
BE:
The sell-off in rates has taken a breather in recent weeks in line with the decline in the repo rate
after its IPO-induced spurt and dovish comments from the Chinese authorities. However, given
developments in the Chinese A-share market, it is interesting that bond yields have not rallied yet.
This suggests that the bond market has, so far, looked through the fears of slower growth on the
back of credit withdrawal which seems to be weighing on the stock market.
after its IPO-induced spurt and dovish comments from the Chinese authorities. However, given
developments in the Chinese A-share market, it is interesting that bond yields have not rallied yet.
This suggests that the bond market has, so far, looked through the fears of slower growth on the
back of credit withdrawal which seems to be weighing on the stock market.
BE:
We expect rates to move higher on the back of stronger growth and higher inflation, a rally in
rates would start to make a paying position look appealing. The swap curve is steep compared to
its short history, thus when tightening kicks in more significantly, the curve is likely to flatten.
This does not necessarily require interest rate hikes, the use of broader tightening measures are
also likely to cause the curve to flatten. We look for opportunities to consider positioning for a
flatter curve.
rates would start to make a paying position look appealing. The swap curve is steep compared to
its short history, thus when tightening kicks in more significantly, the curve is likely to flatten.
This does not necessarily require interest rate hikes, the use of broader tightening measures are
also likely to cause the curve to flatten. We look for opportunities to consider positioning for a
flatter curve.
PM:
cheers for that
11:10AM
PM:
So what’s the Footsie doing???
BE:
FTSE down 41 at 4644
BE:
Much of that’s ex-divis though, somewhat boringly
BE:
Bah – did have a list, but have lost it now
BE:
Anyway, Pearson’s ex div
Pearson plc is the parent company of the Financial Times, publisher of FT Alphaville.
Pearson (PSON:LSE): Last: 700.50, up 0.7 (+0.10%), High: 702.50, Low: 695.00, Volume: 528.56k
BE:
And up!
PM:
Course it is
PM:
up
PM:
and publisher of AV
PM:
We also had the QE news earlier
PM:
King and two other MPC members wanted to increase total QE programme to 200 billion, rather than the 175 billion agreed.
BE:
View from the BoE that it is better to over-egg the pudding.
PM:
Equities didn’t really move on that, but gilts spiked.
PM:
And the Kroner tanked
BE:
Natch’
PM:
People are really quite shocked by this
PM:
Someone made the comment earlier that they market was so out of step here
PM:
The expectation not too long ago was for QE tap to be turned off, not turned more open and for longer.
PM:
Also, someone else made the point that the only thing we’ve really learnt here is that QE is not working
PM:
Not working in the sense that we have not seen any meaningful increase in M4.
PM:
Just funds being recycled into equities and commodities by the institutions.
BE:
Is it that simple – this mad rally we’ve seen.
PM:
Yep, Monkey was Merved
BE:
Actually, if China cracks further, Monkey could clean up.
BE:
4640 was his sell level
11:15AM
BE:
We should mention Lloyds
Lloyds Banking Group (LLOY:LSE): Last: 96.64, down 0.12 (-0.12%), High: 97.58, Low: 94.25, Volume: 17.12m
BE:
Despite the fact it’s doing nothing
BE:
RBS turned positive this morning
BE:
For a bit of a Nationalised Banking Sector love-in
BE:
Here’s the note
BE:
Roadmap to recovery
Lloyds offers a compelling restructuring opportunity, in our view. Margin
expansion, cost control and normalising bad debts are key to a rise in return on
funded assets to 1.1%. Post GAPS, this implies 18% RoTCE and valuation rerating.
Upgrade to Buy with new TP of 150p, even with GAPS in its current form.
Lloyds offers a compelling restructuring opportunity, in our view. Margin
expansion, cost control and normalising bad debts are key to a rise in return on
funded assets to 1.1%. Post GAPS, this implies 18% RoTCE and valuation rerating.
Upgrade to Buy with new TP of 150p, even with GAPS in its current form.
BE:
Underlying pre-impairment profit should rise £6bn in FY09-13F
Investors willing to look out as far as 2013F should anticipate a steadily rising net interest margin
from next year, in our view. Combined with broadly flat absolute costs, this should drive an
increase in the pre-impairment profit / funded asset margin from 1.3% in FY09F to 2.2% in FY13F
– even as funded assets decline 13% over the period and wholesale funding costs rise £2bn.
Investors willing to look out as far as 2013F should anticipate a steadily rising net interest margin
from next year, in our view. Combined with broadly flat absolute costs, this should drive an
increase in the pre-impairment profit / funded asset margin from 1.3% in FY09F to 2.2% in FY13F
– even as funded assets decline 13% over the period and wholesale funding costs rise £2bn.
BE:
Base-case cumulative losses suggest GAPS is value destructive…
Our base-case cumulative losses for FY08-11F assume a 9% write-off of the pre-crisis proforma
loan book and 19% of the most problematic credit market assets. On this basis, we
estimate that by 2013F Lloyds will receive an £11bn payback from the Government Asset
Protection Scheme (GAPS): this implies a net present value cost to existing shareholders of
19-27p. By these forecasts, shareholders should logically either renegotiate terms or vote
against GAPS at the 2H09 EGM where the 43% controlled by UKFI will abstain.
Our base-case cumulative losses for FY08-11F assume a 9% write-off of the pre-crisis proforma
loan book and 19% of the most problematic credit market assets. On this basis, we
estimate that by 2013F Lloyds will receive an £11bn payback from the Government Asset
Protection Scheme (GAPS): this implies a net present value cost to existing shareholders of
19-27p. By these forecasts, shareholders should logically either renegotiate terms or vote
against GAPS at the 2H09 EGM where the 43% controlled by UKFI will abstain.
BE:
… but little cushion for error
However, we see three problems that suggest it would be pragmatic to vote in favour of
GAPS. 1) There is no economic rationale for politicians to renegotiate terms. 2) Our base
case forecasts imply downside cushion of only 2-2.7% over the life of the £260bn insured
assets – not a lot for a bank with 70% of its loan book directly secured on property. 3) Voting
against GAPS would require a £20bn new equity issuance in order to sustain the core tier 1
ratio above our post-crisis 9% target at the weakest point (end FY10F, by our forecasts).
However, we see three problems that suggest it would be pragmatic to vote in favour of
GAPS. 1) There is no economic rationale for politicians to renegotiate terms. 2) Our base
case forecasts imply downside cushion of only 2-2.7% over the life of the £260bn insured
assets – not a lot for a bank with 70% of its loan book directly secured on property. 3) Voting
against GAPS would require a £20bn new equity issuance in order to sustain the core tier 1
ratio above our post-crisis 9% target at the weakest point (end FY10F, by our forecasts).
BE:
New world RoTCE should command further valuation re-rating
Looking beyond GAPS, we calculate normalised EPS of 20p from 2013F, which is equivalent to
an 18% RoTCE. A higher return on funded assets, lower leverage and less internal capital
retention to support growth than in recent years should combine over time to command further
valuation re-rating. We raise our target price to 150p and recommendation from Hold to Buy.
This also signals our view that investors should participate in the new equity issuance which
would be required if management succeeds in partially reducing the amount of assets covered
by GAPS.
Looking beyond GAPS, we calculate normalised EPS of 20p from 2013F, which is equivalent to
an 18% RoTCE. A higher return on funded assets, lower leverage and less internal capital
retention to support growth than in recent years should combine over time to command further
valuation re-rating. We raise our target price to 150p and recommendation from Hold to Buy.
This also signals our view that investors should participate in the new equity issuance which
would be required if management succeeds in partially reducing the amount of assets covered
by GAPS.
BE:
Make of that what you will
BE:
…. and, to the person asking about ex-divs: Scottish & Southern, Thomson Reuters, Scottish & Southern.
PM:
Cheers for the lloyds stuff
11:19AM
PM:
And congrats to Monkey, CFA and Taxloss, CFA
PM:
re: Masa — she’s not ready for exposure to Taxloss yet
PM:
Joining the grad trainees scheme at the FT
11:21AM
BE:
Request to the right for some ENRC comment
BE:
Shares motoring on the back of results
BE:
EPS 43 cents versus a consensus of 30ish
PM:
Shars up 53 at 830
PM:
Shares even
PM:
some move
BE:
Very upbeat outlook statement too
BE:
Company is expecting further progress in the second half
BE:
Seeing early stages of restocking
BE:
increased belief in the sustainability of the Chinese domestic growth and improving outlook for developed world.
BE:
I nicked that line from Citigroup, who also say this
BE:
We believe the recovery in volumes is ahead of market
expectations. The recovery has been strongly aided by increased volumes into
China but, with developed world recovery gaining pace volumes, should
continue to improve. Valuation now looks more reasonable following a pull back
in the last month and we expect a positive market reaction to the results
expectations. The recovery has been strongly aided by increased volumes into
China but, with developed world recovery gaining pace volumes, should
continue to improve. Valuation now looks more reasonable following a pull back
in the last month and we expect a positive market reaction to the results
BE:
Here’s Morgan Stanley’s reaction
BE:
Strong results: The EBITDA of $628mn was 6% better
than we expected and significant forex gains (due to
devaluation of the Kazakh tenge) resulted in a much
bigger beat at the EPS level.
Very strong volume run-rates: Company says that in
June, the Kazakhstani ferroalloys operations were
running at 84% utilization rate and the iron ore
concentrate production at 91% rate. These are
significant uplifts from the 50-60% capacity utilization
rates in these two businesses in Q1’09 and above our
and, we believe, street expectations for H2’09.
than we expected and significant forex gains (due to
devaluation of the Kazakh tenge) resulted in a much
bigger beat at the EPS level.
Very strong volume run-rates: Company says that in
June, the Kazakhstani ferroalloys operations were
running at 84% utilization rate and the iron ore
concentrate production at 91% rate. These are
significant uplifts from the 50-60% capacity utilization
rates in these two businesses in Q1’09 and above our
and, we believe, street expectations for H2’09.
BE:
Some potential tax rate upside: The new tax code in
Kazakhstan, which took effect from January 1st, provides
for a phased reduction of corporate income tax from
30% in 2008 to 15% by 2011. This will partly be offset by
the mineral extraction tax, and the guidance for the
current year is for a neutral effect (i.e. the corporate tax
rate reduction of 10% being offset by MET). However,
the impact is likely to be positive in the coming years.
Short term positives likely to offset the concerns:
With stainless steel restocking underway and steel
production in Russia ramping up, the near term volume
and pricing outlook in ferrochrome and iron ore
continues to be strong. The short-term point of concern
is the accident at the Sayano-Shushenskaya dam,
which may lead to some curtailment in aluminium
production in Siberia (and consequently impacting the
alumina volume of ENRC). The bulk of the volume goes
to the Bratsk and Krasnoyarsk smelters of Rusal, so the
impact is likely to be limited.
Kazakhstan, which took effect from January 1st, provides
for a phased reduction of corporate income tax from
30% in 2008 to 15% by 2011. This will partly be offset by
the mineral extraction tax, and the guidance for the
current year is for a neutral effect (i.e. the corporate tax
rate reduction of 10% being offset by MET). However,
the impact is likely to be positive in the coming years.
Short term positives likely to offset the concerns:
With stainless steel restocking underway and steel
production in Russia ramping up, the near term volume
and pricing outlook in ferrochrome and iron ore
continues to be strong. The short-term point of concern
is the accident at the Sayano-Shushenskaya dam,
which may lead to some curtailment in aluminium
production in Siberia (and consequently impacting the
alumina volume of ENRC). The bulk of the volume goes
to the Bratsk and Krasnoyarsk smelters of Rusal, so the
impact is likely to be limited.
BE:
Use of cash balance the next big catalyst: With cash
and equivalents of $1.6bn and with a capex plan of only
$0.5bn for the year and strong free cash flow in the
meantime, we believe the acquisition strategy of the firm
will be closely monitored by the markets.
and equivalents of $1.6bn and with a capex plan of only
$0.5bn for the year and strong free cash flow in the
meantime, we believe the acquisition strategy of the firm
will be closely monitored by the markets.
BE:
Interesting final line that one.
BE:
Which comes, of course, after ENRC’s been touted repeatedly as a possible buyer for African Minerals
BE:
Vasile Timiş’s Siera Leone iron ore thing
BE:
Worth something like £700m now.
BE:
(Sorry – should have said “valued at £700m now”.)
BE:
(Not that I’m suggesting it’s not worth that, you understand …)
BE:
Anyway, I was quite surprised not to see a statement from African this morning either confirming or denying the rumours.
BE:
But I guess we’ll see what happens.
PM:
Cheers for all taht
PM:
Situation to watch
PM:
(Mervyn — nope, Oxford)
11:27AM
PM:
its very quiet
BE:
It is
BE:
But I guess we should catch up on some developments in World of Bourses.
PM:
sure
BE:
First, the news that Turquoise is for sale
BE:
£25m-£50m.
BE:
UBS hired to find a buyer
BE:
Following an approach from Nasdaq-OMX
PM:
(sorry Taxloss…)
BE:
Other potential buyers, you’d guess, would include Icap, NYSE, Deutsche
BE:
Possibly even Chi-X, which already has about a fifth of the London volume
BE:
LSE up on the back of this
London Stock Exchange Group (LSE:LSE): Last: 748.50, up 2.5 (+0.34%), High: 754.00, Low: 736.50, Volume: 208.81k
BE:
By a fraction …
BE:
Although Citigroup doubts it’s good news
BE:
Does this mean competition is easing in trading of cash equities? – We believe the answer is “No”. Competition is still very strong from the three other players Chi-X, BATS and Nasdaq OMX. Chi-X really leads the charge with ~20% market share in UK equities and ~15% in German and ENXT based volumes. BATS and Nasdaq are the price leaders offering promotions to increase market share. We therefore believe the removal of Turquoise, either by another MTF or by an acquisition from an exchange, is not likely to significantly lessen competition. We are sellers of LSE.
BE:
Also, there’s the news today that BATS will be cutting prices for September
BE:
When, hopefully, there might be a few more punters around
BE:
Here’s Citigroup again
BE:
(Sorry Citi flaks – you’re the only people putting out interesting research this morning)
PM:
(Tactlless — cheers)
BE:
Inverted pricing of -0.2bps – In September BATS is to offer a rebate of 0.4bps of value traded for adding liquidity to its platform (i.e. selling stocks to it) and charge only 0.2bps for removal. i.e. inverted pricing of -0.2bps. This is clearly loss
making but BATS has form of doing this to build market share. It subsequently takes off the promotion – back to around net 0.1bps – and the volumes tend to stick with its platform. LSE in comparison is to charge ~0.8bps in Sep.
making but BATS has form of doing this to build market share. It subsequently takes off the promotion – back to around net 0.1bps – and the volumes tend to stick with its platform. LSE in comparison is to charge ~0.8bps in Sep.
BE:
LSE market share likely to fall further – We believe this action is likely to trigger a further erosion of LSE market share of volumes in UK equities. This has been slipping each month (August is now down to 66% for LSE) even without this promotion, but this is now likely to accelerate.
PM:
Interesting situation
PM:
Good opportunity to plug this
PM:
That’s run by jeremy Grant at the FT
PM:
Specialised page on FT.com for all things bourse, clearing, settlement
PM:
etc
PM:
Worth bookmarking
PM:
Think there are some more whizzy graphics planned for it
PM:
Also gives market shares etc — updated daily
BE:
Very good idea that site
BE:
Well worth watching
11:34AM
BE:
We’re four minutes over deadline
BE:
Do we have time for a quick visit to small cap corner?
PM:
yes
PM:
Bu what the hell is this ?
PM:
Hot Rocks Investments
PM:
When did we start getting PLUS announcements littering up the screen
BE:
No idea
BE:
Thought RNS at least tried to keep some kind of quality control
PM:
Well here’s Hot Rocks statement with its finals
PM:
I am pleased to announce the final audited results for the Company for the year
ended 31 March 2009.
ended 31 March 2009.
The Company made a pre-tax loss of GBP 5,600 for the year. Interest receivable
on deposits for the year was GBP 19,291.
Cash in the bank at the end of March 2009 was GBP 452,210.
The Directors have reviewed a number of potential acquisitions and investment
opportunities since the successful flotation of Hot Rocks Investments Plc on
PLUS which raised GBP 500,000 gross. The Company has not yet commenced formal
due diligence on any particular opportunity but your Board continues to review
opportunities and seeks to complete a transaction as soon as possible.
The Directors remain focused on business or companies that they consider have
the potential to produce a favourable return for shareholders in both the short
and medium terms.
Brian Rowbotham
BE:
So this is a shell.
PM:
You know that statement is almost identical to the one issued in December – for the half year figs.
PM:
It’s stupid
PM:
Just cluttering up the screens.
BE:
It’s a shell with shares that never change – quoted 0.75 – 1.25
BE:
Not sure whether that is in pence, kroner or groats
BE:
No trade – and a comic spread.
PM:
Hot Rocks indeed
PM:
Hot Rocks Investments Plc
39 Cheval Place,
London, SW7 1EW
United Kingdom
39 Cheval Place,
London, SW7 1EW
United Kingdom
PM:
Of course it would need to be based in South ken
BE:
Handy for Bijou
11:38AM
PM:
Got any proper small caps?
BE:
Well, depends on your definitions
BE:
But I guess we have to look at Earthport again, I’m afraid.
BE:
Shares down.
PM:
(Mervyn — thank you)
BE:
Off 4.5p at 63p in the middle.
BE:
That’s after they stuck out this statement yesterday.
BE:
Statement Re: press speculation
The Company notes the recent press speculation surrounding its Strategic Review. The Company wishes to clarify that the Strategic Review remains ongoing with a number of parties and reconfirms its commitment to make further announcements as appropriate.
PM:
What was the speculation?
BE:
That all potential bidders had walked.
BE:
And part of the difficulty here …
BE:
… is that no-one’s quite sure exactly what “the Strategic Review remains ongoing with a number of parties” means.
PM:
BE:
On top of that, we’ve been hearing from a few people who are getting a bit twitchy about recent trading.
BE:
This is a cash transfer business, basically
BE:
And strictly anecdoally, the talk among customers is that things are a bit soft right now
BE:
So there’s a bit of uncertainty whether they can hit figures
BE:
But there’s a huge RAW disclaimer attached to this one, of course.
RAW is market chatter – information that has not been formally tested through traditional journalistic channels (PRs etc). The story might be complete rubbish, but if we believe there is some substance to it we will say so. Either way, Reader Beware.
BE:
I guess, until they can deliver their strategic review, I think this falls into the category of “one to watch”
PM:
Okay — cheers for that
PM:
We’ve got go
PM:
Ive got an early lunch
BE:
Well there’s a surprise
BE:
Where?
PM:
Cipriani
BE:
Hm.
BE:
Footballer central.
PM:
I like Cpiriani — havent been for a while
PM:
Im having to do near-full time lunches ahead of going to NY
BE:
What a hardship
PM:
Well it can be
BE:
I’m off to the canteen for another plastic sandwich
PM:
right
PM:
Thanks for most of the comments today
PM:
Sorry for the zapping, for which there was a good (private) reason
PM:
We will be back tomorrow at 11am
PM:
seeya
BE:
Bye