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THE COALITION announced a raft of
new policies yesterday in a desperate
attempt to get the economy and
their poll ratings back on track.
But critics said ministers infighting
and U-turns were making matters
worse, creating extra uncertainty for
businesses while failing to come up
with any meaningful solutions to the
double-dip recession.
Prime Minister David Cameron
acknowledged he has failed to slash
the red tape holding back the econo-
my, and pledged to try again to
remove planning restrictions that
have stopped private sector construc-
tion from really growing despite
opposition from within the govern-
ing parties when this was tried a year
ago.
That is also expected to be accompa-
nied by the announcement of
schemes to help first-time buyers
onto the property ladder, replacing
the stamp duty exemption that
expired in March.
Meanwhile chancellor George
Osborne announced plans for a state-
backed business bank, and said that
legislation will be introduced this
week to put in place infrastructure
guarantees to boost building.
That could see the government give
firms a total of up to 40bn in guar-
antees on projects like private road
building and power generation. The
Treasury has been approached by
over 30 firms already, looking for sup-
port of up to 5bn for their projects.
And the chancellor said a Heathrow
extension could be a possible solution
to Britains air-travel capacity prob-
lem putting him at odds with trans-
port secretary Justine Greening who
opposes any such plans.
Business secretary Vince Cable con-
tinued to push for the wealth tax pro-
posed last week by deputy prime
minister Nick Clegg, in the hope that
he can keep momentum behind the
idea building in the run up to the
Autumn Statement and the budget
despite opposition from
Conservatives and the City.
The Liberal Democrats believe they
were close to seeing the mansion tax
implemented in the last budget, and
hope an extra push while the
Conservatives are under pressure
could see the policy implemented.
And the government is coming
under attack from prominent back-
benchers, with David Davis telling
the government it is time for a radical
supply-side agenda to downsize the
size of the state and introduce flatter
taxes.
The chaos in the coalition comes
ahead of a government reshuffle,
expected as soon as tomorrow, which
is widely expected to see deficit hawk
David Laws return to the front bench
he resigned just days into the coali-
tions rule after being caught up in
the expenses scandal.
Conservative party chairman
Sayeeda Warsi could face the chop in
the front bench shakeup.
Brian Binley MP called for Osborne
to take her role so he can focus on
party strategy and winning the next
election, arguing Osbornes duel role
currently means he is failing in his
mission to properly control the pub-
lic finances.
Instead, Binley told the Mail on
Sunday that Philip Hammond should
become the next chancellor, moving
from his current role as defence secre-
tary.
Labours shadow business secretary
Chuka Umunna told City A.M. the
new policies and inter-party rows are
damaging the economy.
Businesses are calling for more cer-
tainty an stability, but the situation is
more uncertain in the wake of minis-
ters comments yesterday, he said.
A new planning framework was
introduced in March which local
authorities have been busy preparing
for now they are shaking it up,
amending the process further.
Justine Greening said a third run-
way was firmly off the table, and now
George Osborne says all options
should be considered all we see is
more uncertainty here.
FTSE 100 M5,711.48 -7.97 DOW n13,090.84 +90.13 NASDAQn3,066.96 +18.25 /$ n1.59 +0.01 / 1.26 unc /$ n 1.26 +0.01
BY TIM WALLACE
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AGOLDEN WEEKEND
TEAM GB STORMS THE PARALYMPICS
BACK TO WORK
Struggling coalition government battles to regain initiative on the economy ahead of imminent reshuffle
n A new business bank will be set up,
backed by the state to tryandhelp
fund small firms and entrepreneurs
n Infrastructure finance guarantees will
be put in place to transfer some of
the risk of big projects from
companies to the government
n First-time buyers will get more
support to buy a house, after the last
scheme exemption from stamp
duty expired in March
n An extra runway at Heathrow could
be built to give the UK more air
capacity, but no decision has been
taken on what to do
n Firms may face fewer regulations to
employ people for just a few hours a
week, helping to cut unemployment
inspired by German mini-jobs
n Planning laws will be loosened to
allow private firms to increase
building, filling the gap left by falling
government construction projects
All the action from day four of the Games: See Page 23
AT least a dozen US private equity
firms have been subpoenaed by the
New York state attorney general as
part of a probe into whether a widely
used tax strategy that saved them
hundreds of millions of dollars is
proper, a source said at the weekend.
Among the firms that were
subpoenaed are Bain Capital, KKR,
TPG Capital, Apollo Global and Silver
Lake Partners, the source said.
The subpoenas, which were sent
out in July, seek documents related
to the conversion of fees firms
charge for managing investors assets
into fund investments. Other firms
that received subpoenas include Sun
Capital Partners; Clayton, Dubilier &
Rice; Crestview Partners; HIG.
Capital; Vestar Capital Partners; and
Providence Equity Partners.
A spokeswoman for the New York
attorney general office declined to
comment. The firms were not
immediately available for comment.
Subpoenas for
private equity
firms over fees
BY CITY A.M. REPORTER
2
NEWS
To contact the newsdesk email news@cityam.com
MONDAY 3 SEPTEMBER 2012
FRENCH president Francois Hollande
was forced to nationalise Frances sec-
ond biggest specialist mortgage lender
on Saturday night after a cash drought
left it unable to pay its debts, meaning
the government could be on the hook
for up to 20bn in guarantees.
Credit Immobilier de France (CIF),
which has around four per cent of the
French mortgage market, was handed
a state guarantee by French finance
minister Pierre Moscovici, in part to
help it pay a 1.75bn (1.39bn) covered
bond debt, which is due to mature
next month.
As part of the bailout, which is sub-
ject to European Commission
approval, CIFs chief executive Claude
Sadoun has been forced to step down
and will be replaced by government
appointee Bernard Sevez.
Moscovici said: To allow the CIF
F
OR those of us returning to work
after a summer break, it feels as
if not very much has changed.
The City is still subdued, reeling
from tough conditions and the
regulatory onslaught; the Eurozone
remains in crisis, endlessly debating
the latest variant of its latest plan to
delay its demise; and the British
government is unveiling, yet again, a
lacklustre and depressing growth
plan which is likely to achieve the
square root of nothing. The only ray
of light comes from the Paralympics,
a beacon of optimism, but the Games
will be over in a weeks time, leaving
behind them the increasingly chilly
winds of Autumnal reality.
It is not as if the coalitions growth
plans perhaps better described as
aspirations are all bad. A couple are
even pretty good. But most are singu-
larly unambitious, a rehash of previ-
ous announcements, and confirm
that the government regardless of
the outcome of this weeks ministerial
reshuffle is not serious about push-
EDITORS
LETTER
ALLISTER HEATH
Coalitions new growth plan another damp squib
ing through a genuine supply-side
revolution to liberate the economy.
It would be great to see the housing
market properly liberalised, making
it easier to build more of the right
kinds of homes in places where they
are most needed. The only problem is
that this was meant to have hap-
pened already earlier this year but the
legislation that ended up being
adopted was a hopeless, useless com-
promise that achieved little. If any-
thing, matters are now worse than
they used to be, with even private
individuals seeking to build their own
homes being hit with a vicious
Community Investment Levy. The pre-
vious reform was captured and
destroyed by vested interests; it is
hard to imagine why the next one
wont be. A partial liberalisation of
the labour market would be a great
thing, though the details a tax and
red tape free class of jobs for some
low-income workers, and a capping of
unfair dismissal payouts are far less
radical than those discussed last year
during the review led by Adrian
Beecroft. Once again, this smacks of
cowardice and coalition infighting.
Even these good ideas are spoiled by
the bad ones: the creation of a state
bank to lend to small businesses is a
terrible policy, as is the proposal for
the government to guarantee yet
more mortgages and infrastructure
projects. The coalition has learnt
nothing from Americas errors over
the past decade, and cannot grasp
that subsiding credit always ends in
tears. Governments are even worse
judges of risk than private banks are,
and the last thing taxpayers need is to
be saddled with the liabilities for a
new generation of sub-prime projects.
And what about airports? No decision
has been taken on any of the alterna-
tives; a solution is at least 15 years
away, a disgraceful state of affairs.
It is a shame that Osborne wont lis-
ten to those in his party with fresh
ideas. David Davis, Camerons former
rival, will today become the latest to
outline an alternative. Davis draws on
the experience of other countries,
including Switzerland, which has a
bigger financial sector than Britain,
and depends on exports to the
Eurozone, but is doing better than us.
Among his policies are much flatter
taxes and, over time, substantially
lower public spending, as well as a
more rational energy policy that ceas-
es to genuflect at the green altar. Its
the kind of roadmap that could save
Britain yet tragically, it is nowhere
near being on offer from a govern-
ment that has forgotten how to think.
group to respect its overall commit-
ments, the state decided to respond
favourably to its request to grant it a
guarantee.
The rescue deal also guarantees the
lenders assets up to a ceiling of more
than 20bn, a source said, adding that
the terms agreed prevent the CIF from
making new loans.
Without a buyer, the bank lacks the
solid base which would allow it to
access liquidity, the source said.
That suggests that the lender is likely
to be wound down and that months-
long efforts to find a buyer for it would
be abandoned.
The firm had originally put itself up
for sale in June, but failed to find a
buyer, prompting the government to
move in. The move is the latest rescue
of a financial institution by French
authorities, following a bailout of
Dexia between 2008 and 2011.
CIF, which provides loans to people
with low incomes, is the second
biggest specialist mortgage player in
France behind Credit Foncier de
France and has a large exposure to the
French real estate market which was
hit by a 10 per cent contraction in
transaction volumes last year.
Its once healthier balance sheet has
also been crippled by the evaporation
of cheap credit and increasingly oner-
ous banking regulations in the form of
Basel III requirements.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Hollande is forced to nationalise
mortgage lender on default fear
BY MICHAEL BOW
CIC sells bulk of its BlackRock stake
China Investment Corp has sold most of
its stake in BlackRock, the worlds largest
asset manager, as part of a wider strategy
by the sovereign wealth to cut its holdings
in global financial institutions. CIC bought
just under 3 per cent of BlackRocks
shares, worth about $1bn, when the asset
manager agreed to buy Barclays Global
Investors in 2009.
Germans write off Greece, says poll
Only a quarter of Germans think Greece
should stay in the Eurozone or get more
help from other countries in the currency
union, a Financial Times/Harris poll has
found. The overwhelming verdict
highlights Angela Merkels domestic
dilemma as she comes under pressure in
Europe to agree more time or money for
Greece to get its 174bn second bailout
back on track.
Credit Suisse moving some
Singapore jobs
Credit Suisse is relocating dozens of back-
office jobs from Singapore to India and
Poland as part of efforts to cut costs and
support the growth of front office jobs.
Misled investors line up to sue
RBS for 3bn over rights issue
Burnt shareholders in Royal Bank of
Scotland are in talks with litigation funds
with a view to launching a formal 3.3bn
lawsuit within weeks.
Axa puts 320m into Kings Cross
offices development
Axa, one of Europes biggest insurers, is
ploughing nearly 320m into the Kings
Cross office market as Londons emerging
business district continues to grow.
Airlines under pressure to allow
internet access on aeroplanes
Airlines are under pressure to allow
passengers to use the internet several
thousand feet in the air. Half of UK adults
said they would like internet access on
aeroplanes, compared to 13pc opposed to
the idea, a YouGov poll found.
Boris Island airport almost as quick
A new airport in the Thames estuary could be
built within 14 years, only two years longer
than would be needed to build a third
runway at Heathrow, says new research.
Amazon heats up gadget wars
Amazon.com is ratcheting up pricing
pressure in the gadget wars with an
advertising-supported tablet that will be
priced lower than similar models,
according to people involved in the
discussions.
Pirate Bay co-founder arrested
Cambodian police yesterday said they
have arrested Gottfrid Svartholm Warg,
one of the masterminds behind notorious
file-sharing website The Pirate Bay.
WHAT THE OTHER PAPERS SAY THIS MORNING
The new jobs website for London professionals
CITYAMCAREERS.com
French president Francois Hollande has promised to stand behind the failing lender
A STATE-BACKED bank to lend specifi-
cally to small firms and entrepre-
neurs will be set up, chancellor
George Osborne said yesterday
though critics worried the move
would just expose the government to
more financial risks.
The chancellor said he is looking at
setting up a business bank to bring
together the alphabet soup of existing
schemes and potentially have addi-
tional powers because small firms are
the innocent victims of
the credit crunch.
However the
Treasury does not
expect that any extra
money will be used to
create this bank
schemes like the enter-
prise finance guaran-
tee will be
r o l l e d
into it.
T h e
BY TIM WALLACE
British Chamber of Commerce (BCC)
praised the plan.
This institution would be a game-
changer for long term growth, said
director-general John Longworth.
The Prime Minister should use his
upcoming reshuffle to appoint a min-
ister to spearhead the banks creation
by the end of this parliament, and
involve the opposition in the process.
But Labours Chuka Umunna told
City A.M. this plan simply shows the
governments previous lending
schemes have failed.
This suggests the chancellor is not
confident credit easing or funding for
lending will solve firms financial
problems in the way he promised.
And analysts at the Institute for
Economic Affairs fear the state would
lend to risky firms.
The proposed bank would expose
taxpayers to huge financial risks
and further jeopardise already
precarious public finances,
said the think-tanks
Richard Wellings.
Government may cut back job
rules to help low-paid workers
LOW-PAID workers could be exempt
from taxes and regulations in an
attempt to encourage cautious
firms to hire more staff, under
proposals being considered by the
government.
Any workers covered by the
scheme would have fewer
employment rights, in exchange
for paying fewer taxes helping
employers and making them more
likely to be hired in the first place.
The government is considering
the scheme in light of the success
BY TIM WALLACE
of so-called mini-jobs in Germany,
where it is possible to earn up to
400 (317) per month and pay no
tax, while employers pay a flat rate
levy. Workers can then hold several
of these mini-jobs at once.
However the reforms are not
certain to happen, with a Treasury
source explaining this is very
much up in the air, being discussed
by ministers this week.
It is one of many proposals, and
there are lots of factors to consider.
In part that is due to the
difference between the German and
British tax and labour regulation
systems which would need to be
worked through.
Other proposals to deregulate the
labour market have made little
progress recently.
For example the government
commissioned venture capitalist
Adrian Beecroft to report on ways
to boost employment.
But when he called for no-fault
dismissal rules to make it easier to
fire workers, an outcry from groups
including prominent Liberal
Democrats stopped the radical
deregulation from being
introduced.
L
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U
R
A

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E
A
N
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Y
A
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M
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George Osborne is announcing a raft of new policies in an effort to stimulate the economy
GEORGE Osborne left the door
open for a third runway at
Heathrow yesterday, saying that the
government should examine all
the options for boosting capacity.
But he added in an interview
with the BBC: If building a new
runway was simple, it would have
been done over the last 20 years. It
hasnt.
Foreign secretary William Hague
cast doubt on the prospect of an
aviation U-turn, however, telling
Sky News we said very specifically
we would not be [building a third
runway] as part of the 2010
coalition agreement.
Chancellor hints that Heathrow
could still get another runway
BY MARION DAKERS
The government will this week
open a call for evidence on the
various options for expanding air
traffic in the UK.
One such option, a new airport
in the Thames Estuary, would take
just two years longer than a new
Heathrow runway to build, its
proponents have claimed.
A report by law firm Bircham
Dyson Bell for Foster + Partners,
which has put forward designs for
the new airport, has pencilled in a
completion date of 2026.
And the Independent reported
that an unnamed infrastructure
company plans to pitch a new four-
runway airport in west London.
MONDAY 3 SEPTEMBER 2012
3
NEWS
cityam.com
Chuka Umunna
wants more lending
Osborne wants
to lend directly
to small firms
ECONOMICS: Page 12
n n
THE FORUM: Page 16
n n
MARKET watchers expecting plans
for bold monetary intervention from
the European Central Bank (ECB) on
Thursday are likely to be disappoint-
ed, analysts warn.
We expect the Bank to disappoint
markets by providing only details
about how it might buy bonds in
future, instead of a grand plan for
immediate and massive purchases,
said Jennifer McKeown and Ben May
at Capital Economics.
Eurozone stagnation and economic
weakness, combined with the sover-
eign debt crisis, have driven many to
expect bold and immediate mone-
tary action from Eurozone policy-
makers at the ECB, which is led by
Mario Draghi.
But analysts are sceptical their high
hopes can be fulfilled. They warn
Analysts warn
Eurozone bank
will disappoint
BY BEN SOUTHWOOD
that Bundesbank president Jens
Weidmanns claim he has considered
following his predecessor by resigning
may sway ECB members against inter-
vening in sovereign debt markets.
Commentators also say plans are
likely to stop short of setting explicit
rate targets.
Officials will surely consider levels
beyond which they will intervene,
said Philip Shaw at Investec, However
publicising these would potentially
expose the ECB to intervening in
unlimited quantities.
Though economic rot has spread
from the periphery to formerly
healthy economies, analysts also
expect the ECB to hold fire on rates, as
inflation is slightly above target.
Shaw said he did not think a rate cut
was impossible but that it was
unlikely at this point in the year.
Jenkins set to cut bad products
BARCLAYS could look to cut
unprofitable business lines in its
investment banking and other arms
under a structural review planned
by new boss Antony Jenkins.
The incoming chief executive has
pledged to keep the investment
bank intact and said he values the
universal banking model.
But his background in
commercial and retail banking
means some analysts are concerned
he could reduce the focus on the
profitable investment banking unit.
Jenkins is launching a thorough
internal review into each unit and
product line in an effort to make
the bank more efficient at a time
BY TIM WALLACE
when the increasing burden of
regulation risks squeezing profits.
This could be a particular
challenge as Jenkins told City A.M. he
wants to implement potentially
costly changes like the ring-fencing
of the retail and investment
operations, and rising capital ratios
ahead of regulators targets.
The review will run in parallel
with the Salz review into the
behaviour and culture of staff at the
bank, and will report in the first
quarter of next year. Antony Salzs
review will report by the time of the
annual general meeting in April.
It is not yet known who will
replace Jenkins as head of retail and
business banking, or whether Jerry
del Missier will be replaced as chief
operating officer, having resigned
over the Libor scandal.
The COO post was resurrected by
Bob Diamond earlier this year after
standing vacant for several years,
only for del Missier to resign within
weeks.
One more month of reckoning
for a still crisis-riven Europe
W
ESTMINSTER is in the
spotlight, as MPs return and
reshuffle scuttlebutt fills
the air. But the Eurozone
crisis too, after a summer lull, is
ready to leap up and bite. After
Mario Draghi pulled out of last
weeks Jackson Hole conference,
speculation mounted that he was
busy preparing for a big
announcement this week. That now
seems less likely.
If this Thursdays ECB meeting
disappoints, the market optimism
that followed Draghis promise at
the end of July to do whatever it
takes to save the euro will be on
shakier ground, especially with the
German constitutional courts
critical ruling on the
constitutionality of the European
Stability Mechanism (ESM), the
giant Eurozone rescue fund
designed to replace the EFSF, due
on 12 September.
While the chance of the court
ruling against the ESM is small, its
possibility creates uncertainty and
provides one more sign of just how
easily the worst of the crisis could
reassert itself. Reconciliation
between leaders fearful of the
consequences of allowing any part
of the Eurozone project to fail and
restive electorates increasingly
unwilling to write blank cheques to
pay other countries bills remains
elusive. That means can-kicking,
half-measures and sudden panics
are all set to continue.
Marc Sidwell is City A.M.s managing
editor.
BOTTOM
LINE
MARC SIDWELL
European Central Bank boss Mario Draghi will make a policy announcement on Thursday
Barclays PLC
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MONDAY 3 SEPTEMBER 2012
5
NEWS
cityam.com
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THE SALE of JJB Sports has already
attracted a string of potential
bidders, giving the firm a chance
to stave off administration.
Better Capital, led by Jon
Moulton, and retail investment
specialist OpCapita are thought to
be among the firms circling JJB as
the sale process gets underway.
The sportswear retailer put itself
on the block last Thursday, having
failed to secure much-needed
funds from its backers including
US-based Dicks Sporting Goods.
JJB warned that its debt levels
mean it could change hands for a
pittance, wiping out shareholders.
Analysts expect the firm to be
put into administration before
parts of the business are bought at
a rock-bottom price.
The firm has debts of around
36m, giving it a debt to equity
ratio of 0.51.
It had a market cap of 3m on
Friday down from 500m two
years ago.
JJB, which issued a profit
warning in July, said sales in the
six weeks to 26 August slipped 3.3
per cent, dashing hopes of an
organic turnaround aided by a
summer of sporting events.
KPMG, which is managing the
sale process, declined to comment,
while JJB and Better could not be
reached for comment yesterday.
Bidders circle
JJB Sports as
sale kicks off
BY MARION DAKERS
FIRSTGROUP has been told to carry
on with its preparations to take
over the West Coast Main Line,
despite a looming court battle
launched by losing bidder Virgin
Trains.
The Department for Transport
has assured FirstGroup that the
handover contract will be signed
off soon, and that it should press
on with plans to take control of
operations on the intercity rail
route from December, as expected.
Meanwhile, Virgin Trains will
find out this week whether its
application for a judicial review
into the franchise decision can pro-
ceed.
The company has argued that the
governments decision making did
not properly consider the risks of
each bidder.
It also maintains that
FirstGroups bid to run the route,
which came in at 1bn more than
Virgins, is structured in a way that
could make it lucrative for First to
abandon the contract before the
First pushes on
as Virgin chases
judicial review
BY MARION DAKERS
13-year franchise is complete.
Virgin Trains yesterday hit out at
claims by First and the department
for transport that it was only com-
plaining because it lost the auction.
Chief executive Tony Collins said
in a statement: We have had sever-
al meetings over the last two or
three years where we have
expressed our concerns over the bid
process, how it evaluates the bids
and how it leads to the sorts of fail-
ures we have seen on East Coast
with National Express and GNER.
We certainly have dates of meet-
ings, follow-up letters and obviously
our notes of what was discussed.
Former Merrill Lynch banker Bob Wigley is chairman of Hibu
Firstgroup PLC
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MONDAY 3 SEPTEMBER 2012
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cityam.com
DEBT-laden Yellow Pages publisher
Hibu is set to step up ownership
talks with a six-strong consortium
of creditors after winning a
reprieve on its loan conditions.
Hibu, which has 2.2bn of debts,
won a reprieve from its lenders on
Friday to waive some debt
conditions helping smooth plans
put forward in July for a capital
restructure.
A credit committee, including
Royal Bank of Scotland, Alcentra,
Blackstones credit business GSO
Yellow Pages owner Hibu set for
more crunch ownership talks
BY MICHAEL BOW
and Gruss Asset Management, are
hatching a plan with management
for a possible debt-for-equity swap,
altering the ownership of the firm.
Hibu PLC
31 Aug 24Aug 28Aug 29Aug 30Aug
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MERGERS & acquisitions activity in
the Eurozone has fallen to its lowest
level in two years despite companies
getting cheaper to buy, research fig-
ures published yesterday show.
Data compiled by US valuation
company American Appraisal shows
there were just 2,037 deals across the
Eurozone in the first six months of
this year, a 27 per cent drop on vol-
umes compared to 2011.
However, the average price to snap
up a firm in Europe calculated as a
multiple of a firms income
dropped from 8.1x company earn-
ings to 7.6x, according to an average
taken on deals the researcher
advised on.
The collective value of all Eurozone
deals, some $333.3bn (210bn), also
dropped 21 per cent compared to the
first half of 2011.
This is in sharp contrast to both
America and Asia, which saw an
upswing in multiples for the same
period.
Euro M&A deals
slump despite
bargain prices
BY MICHAEL BOW American Appraisals UK managing
director Mike Weaver said: In the
absence of a lasting solution to the
Eurozones debt troubles, legislative
uncertainty and financial market
volatility are bringing additional
stresses to the process of acquiring or
selling a business.
Despite the slowdown in volume
and valuation levels in Europe, there
were brighter spots in sector terms,
with the technology sector remaining
resilient to the downbeat environ-
ment.
Average technology earning multi-
ples nearly doubled between 2010
and 2011, surging from 7.7x to 14.1x.
Consumer M&A deal multiples also
increased, from 4.7x to 8.9x.
We have seen the highest acquisi-
tion multiple growth in the technolo-
gy space, where there is fierce
competitive tension between buyers
as higher levels of risk are offset by
potentially large payoffs.
Cloud technology has seen the
strongest growth projection. Weaver
added.
Morrisons faces fresh woe as
half-year sales set for decline
MORRISONS is this week expected to
show it has come under further
pressure in the first half of the year
as a result of gloomy weather
conditions and fiercer competition
from rival Asda after the rivals
merger with discounter Netto.
Analysts are forecasting that like-
for-like sales at the supermarket
could be down by 0.7 per cent or as
much as 1.5 per cent. Pre-tax profits
are expected to have fallen by two to
three per cent to 434m-427m.
BY KASMIRA JEFFORD Recent Kantar data saw the
retailers sales trailing behind rivals,
which analysts attributed to tougher
trading conditions and Asdas recent
acquisition of Nettos stores located
close to Morrisons home territory in
the north of England.
Worries that Morrisons has been
slow in rolling out convenience
stores and its online platform have
also overshadowed the group.
Chief executive Dalton Philips is
expected to counter criticism by
mapping out further plans for the
groups online arm, its M Local
stores and plans to convert more
shops to its new fresh-food format.
South Africa withdraws murder
charges over 34 Lonmin deaths
Morrisons chief Dalton Philips is expected to map out plans for further M Local stores
WM Morrison Supermarkets PLC
31 Aug 24Aug 28Aug 29Aug 30Aug
276
278
280
282
284 p 280.00
31Aug
SOUTH African prosecutors
yesterday decided to provisionally
withdraw murder charges against
270 miners who had been accused
of killing 34 striking colleagues
gunned down by police last month.
Public anger had been mounting
at the charges, made under an
apartheid-era law under which the
miners were deemed to have
collaborated with common
purpose in the murder of their co-
workers.
The killing of the strikers at the
Marikana mine, run by the London-
listed platinum producer Lonmin,
was the worst case of police
brutality in South Africas 18 years
of democracy.
BY KASMIRA JEFFORD
Nomgcobo Jiba, the acting
national director of prosecutions,
said in a televised news conference
yesterday that the charges had
been withdrawn but they could
receive final charges once all
investigations have been
completed.
The miners will be released from
prison starting this week. In all, 44
people were killed in the wave of
violence stemming from an illegal
strike and a dispute between two
rival unions, the National Union of
Mineworkers and the more
militant Association of
Mineworkers and Construction
Union.
Talks to end the strike are set to
resume today after a weekend of
funerals for the slain workers.
MONDAY 3 SEPTEMBER 2012
9
NEWS
cityam.com
RETAILERS hopes of an Olympic-
boost were dashed last month, a lead-
ing survey shows today, after
Olympic-inspired purchases failed to
make up for depressed sales in fash-
ion and homeware.
Figures released today by
accountancy firm BDO reveal that
like-for-like sales at mid-tier retailers
dipped by 0.5 per cent in August.
Fashion sales were down 1.3 per
cent year-on-year, stunted by volatile
weather conditions that were either
too wet or too hot to encourage
shoppers to spend.
BDO said hastily planned sales by
retailers looking to get ahead of
rivals further confused shoppers.
Weak consumer confidence and a
static housing market took their toll
on homewares sales, which
struggled for a second month
running, falling 8.7 per cent.
But non-fashion bucked the
trend, with like-for-like sales up 3.1
per cent last month, mainly because
of demand for Olympic memorabilia.
BDO says no
Olympic boost
for high street
BY KASMIRA JEFFORD
GLENCORES merger with Xstrata
looks set to collapse this week after
seven months of wrangling unless
the firms can reach a compromise
with Qatar and other large share-
holders over the terms of the deal.
Xstrata investors are expected to
vote against the 45bn tie-in at a
meeting in the Swiss town of Zug on
Friday morning. The revolt has been
spearheaded by state-controlled
Qatar Holdings, which is holding out
for an improvement on the offer of
2.8 new shares for every Xstrata share
held.
But Glencore has stuck to its guns
on the terms since Qatar demanded
at least 3.25 shares back in June,
though the firms have watered down
plans for handsome retention pack-
ages for board members in the face of
investor agitation.
Other prominent shareholders
including Knight Vinke and Norways
A week to save
Glenstrata deal
BY MARION DAKERS
sovereign wealth fund are also
thought to be unhappy with the offer.
The deal at 2.8 is dead in the water,
one source familiar with the transac-
tion said last week. But the Qatari
wording has been carefully chosen
they like the merger idea.
Some investors have raised the
prospect of departures from the
Xstrata board if the merger falls
through, with chairman Sir John
Bond and senior independent director
David Rough reportedly in the firing
line.
T
HURSDAYS European Central
Bank (ECB) meeting is widely
expected to provide details on a
new intervention programme.
While the ECBs head Mario Draghi
announced a bond-buying
programme in August, the market
may be setting itself up for another
disappointment. Theres a very big
chance well have to wait longer to
hear the real details of how it works.
Some press reports have suggested
the ECB is looking at buying bonds if
yields move beyond a certain level.
However, most economists I speak to
dont think the ECB would set a cap
where it would step into the market.
As markets arent falling off a cliff,
perhaps the ECB need not provide
full-blown support at this stage.
SPANISH BONDS BACK ON THE TABLE
Spain will resume its bond auctions
after a quiet August. Since late July
we have seen a significant rally in
Spanish bonds, especially in the
shorter dated paper, on the notion
that the ECB could step in and
support the debt markets. According
to Reuters, analysts think Madrid
still needs to issue around 25bn
(19.8bn) worth of bonds in 2012.
This is despite Spain announcing last
week that it had covered around 73
per cent of the medium and long-
term debt it wants to sell this year.
A SEMI-SUPPORTIVE ECB
A more likely scenario for Thursday
might be a relaxation of collateral
requirements. It is supportive, but
not too supportive, and could serve
to buy policy makers more time.
But if the Bundesbank continues
objecting to ECB efforts, then how
much the ECB steps in will depend
on Draghis stomach for going up
against Europes paymasters.
Louisa Bojesen is anchor of CNBCs
European Closing Bell.
Twitter: @louisabojesen
IN BRIEF
Pay growing for oil & gas execs
n Demand for interim oil & gas
executives from the UK from post-Arab
Spring governments is driving up pay
levels, according to new research from
search firm Interim Partners. Demand
for experienced executives to help
boost energy production has pushed up
the average daily rate for interim
project engineering directors to 1,500,
up from 1,000 a year ago, the survey
reveals.
Bertelsmann scraps float plans
n The Mohn family, which controls
Bertelsmann, Europes largest media
group, has decided not to take the
company public, German newspaper
Handelsblatt reported. The company
lacks a growth strategy to make it
attractive to investors, according to
the paper, which cited an unidentified
person close to the family. A
spokesman for the company declined
to comment.
Debt deal for Kuwaits Global
n Shareholders in Kuwaits Global
Investment House yesterday approved a
plan for the companys $1.7bn debt
restructuring that will create special
purpose vehicles to take on debts. The
investment company and asset manager
will create at least two SPVs one will
hold company assets along with a debt of
$1.3bn, while another will take part in a
capital increase for the parent company
and carry a debt equivalent to $430m,
managing director Maha al-Ghunaim said.
Etihad raises Virgin Australia stake
n Abu Dhabis flagship carrier Etihad
Airways has raised its stake in Virgin
Australia to 10 per cent through open
market purchases, the state airline said in
a statement yesterday. Etihad, founded
eight-years ago, received approval from
Australias Foreign Investment Review
Board (FIRB) to increase its stake from
five per cent to 10 per cent, it said in the
statement.
HOTELIER Accor is set to open four new properties across London in October, as well as
extending two hotels and refurbishing 12. The group, led by chairman Denis Hennequin
(right) and chief financial officer Sophie Stabile (left) will open two hotels in Blackfriars,
as well as one in Shepherds Bush and another in Greenwich, creating 170 jobs.
ACCOR OPENS FOUR NEW HOTELS IN LONDON
Xstrata PLC
31 Aug 24Aug 28Aug 29Aug 30Aug
920
910
900
930
940
950
960
p 952.20
31Aug
MONDAY 3 SEPTEMBER 2012
11
NEWS
cityam.com
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COMMENT
LOUISA BOJESEN
Market watchers hoping Draghi
intervenes may be disappointed
M
O
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N
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U
P
D
A
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u
p

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1
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3
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a
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o
m
THE LONDON housing market is in a
booming recovery, defying global
downturn and an unconvincing over-
all climate for UK housing, according
to a report released by Knight Frank
today.
Prime central London prices are 49
per cent up since March 2009, when
the market bottomed out following
the financial crisis, and already 14 per
cent above their March 2008 peak.
The rental market has been less
buoyant rents are down two per
cent since October last year, when
they hit a ceiling driven by interna-
tional buyers, with 59 per cent of all
prime lets taken by foreign tenants.
Across the worlds global cities, only
Miami, currently riding a wave of
South American cash, has seen a big-
ger property boom in the year to June
2012, the report claims.
Foreign buyers
drive boom for
London houses
BY BEN SOUTHWOOD As with the rental boom, the price
boom has an important international
component: 41 per cent of buyers
hailed from outside the UK, with the
big contributions from Russia, India,
Italy and the US.
Prices are not the only market met-
ric to have surged, said Liam Bailey at
Knight Frank, The nature of the mar-
ket has shifted; in 2008 Knight Frank
sold prime London properties to 36
nationalities while in 2011 the total
hit 62.
But this isnt to say there are no chal-
lenges facing prime property in
London. Chancellor George Osborne
added 40 per cent to stamp duty in his
2012 budget, while the UK economy
has seen only sluggish and half-heart-
ed recovery from the slump.
As a result, Knight Frank think prices
may have hit a peak, and the firm does
not expect last years growth in sales
prices to be repeated.
IN BRIEF
Business sentiment still going up
n Business confidence in the UKs
economics prospects improved for a
third month in a row, according to
Lloyds business barometer for August
released today. The overall index went
up by 18 points, to +10, having been at
-8 last month. But Lloyds warns that
these rises come in the context of a May
collapse, and are still low by historical
standards
City continues to create new jobs
n The number of jobs created in the
City slipped very slightly in August,
recruiter Astbury Marsden said today.
Firms created 2,920 new jobs in August,
two per cent down on the 2,985 created
in July.
Graduates winning race for houses
n Graduates are coming out ahead in
the race to get a foot on the property
ladder, Rightmove said today. Of those
intending to buy their first property in
the next 12 months, 30 per cent have a
degree, and 39 per cent had a
postgraduate qualification.
Chancellor George Osborne
faced flak over the economy
BUSINESS confidence in the
governments economic policy
has plummeted over the last
year, a report from ECI, the
private equity firm,
showed today.
While businesses
understand the need
for fiscal consolidation,
they have made an
about-turn in their
assessments of
chancellor George
Osbornes economic
policies.
While 42 per cent said
ECI says firms are losing faith in
governments economic plans
BY BEN SOUTHWOOD
coalition policy was having a
positive impact in 2011, just 14 per
cent say so now and just one in
50 say policy has been very
positive, versus one in 20 last year.
Firms complained about
mountains of red tape, with 19
per cent saying regulatory
issues were the main barrier to
growth. Companies also slated
the education system and
tightening immigration
restrictions 27 per cent said
a lack of human capital was
their biggest constraint.
MANUFACTURERS in the UK are
being clobbered in the double-dip
recession, a survey from
manufacturing organisation EEF
and business advisers BDO
claimed today.
Trading conditions were rated
the worst for almost three years,
driven by a sub-index for orders
that dipped below zero for the
first time in 10 quarters, the
survey said.
Crisis-hit Eurozone economies
have been behind much of the
shortfall, but lacklustre domestic
demand is failing to make up for
the downturn.
Factory trade
is worsening
BY BEN SOUTHWOOD
MONDAY 3 SEPTEMBER 2012
12
NEWS
cityam.com
International buyers drive London property boom
Global City Performance
Who Is Buying?
A Sharp Divide
LONDON
New York
Miami
UK
Russia
India
Italy
US
France
UAE
Australia
China (inc Hong Kong)
Greece
South Africa
Germany
Singapore
Ireland
Saudi Arabia
Lebanon
Spain
Egypt
Switzerland
Canada
Geneva
Dubai
S
o
u
r
c
e
: K
n
ig
h
t
F
r
a
n
k
r
e
s
id
e
n
t
ia
l r
e
s
e
a
r
c
h
Moscow
Hong Kong
Beijing
Mumbai
Paris
Monaco
Singapore
Sydney
Shanghai
Annual percentage change
-10 -5 0 5 10 15
150
145
140
135
130
125
120
115
110
105
100
Mar
2009
Mar
2010
Mar
2011
Mar
2012
Prime Central London
%
UK
THEYVE been training, raising spon-
sorship funds, and getting increas-
ingly more nervous for months, and
today the day the intrepid Shard
abseilers have been waiting for (or
dreading) has finally arrived.
From first light this morning
weather permitting a diverse
selection of adventurers, City dare-
devils, politicians wives and even a
member of the Royal family will
begin the slow and steady descent
down the 310m building, raising
hundreds of thousands of pounds for
The Outward Bound Trust and the
Royal Marines Charitable Trust Fund.
The abseilers, whove been dubbed
The Descendants, will set off from
the 87th floor of Europes tallest
building and make their way all the
way to the 20th floor.
The distance is so great that a pit
stop to change ropes is even required
along the way, as the full length
required would be too much for par-
ticipants to carry.
Among the crazy few whove volun-
teered for the once-in-a-lifetime
opportunity are the Duke of York,
Prince Andrew, deputy chairman of
The Outward Bound Trust (and wife
of William) Ffion Hague,
Shearman & Sterling London
managing partner Nick
Buckworth, PwC board mem-
ber Richard Oldfield, and Ted
Hood (pictured), chief execu-
tive of Exchange Traded
Funds provider Source.
It is not just because the
Shard is now there, explained
Hood. I would not normal-
ly consider wanting
to jump off a
1000ft building
attached to a
rope, but I com-
mute into
London Bridge
from Kent
every day and
have seen it
rise majestically out
of the ground, plus
you cant miss see-
ing it from our
offices near the
Bank of England.
Todays challenge
is planned as a
one-off, as once
tenants move into
the building it
will no longer be
able to be used
for abseiling
even today the
participants will
be wearing spe-
cial soled shoes
to avoid mark-
ing the win-
dows.
So make sure
to look up and
cheer them on
during your
morning and
evening com-
mutes, as the
descents will
be taking
p l a c e
through-
o u t
t h e
day.
The Mayor of London, watching but not participating in the zipwire performances
Sources Ted
Hood will be
abseiling
down the
Shard today
CENTRAL London played host to a
pop-up Big Top yesterday, as for one
day only the Piccadilly Circus Circus
rolled into town.
Baffled shoppers were treated to
hula-hoopers, acrobats and jugglers
all afternoon, culminating in an
aerial performance across Piccadilly
at sunset.
The transformation from tourist
Piccadilly Circus Circus takes
the big top to the West End
trap to surrealist carnival was part
of the London 2012 Festival.
Culture secretary Jeremy Hunt
was spotted trying to forget the
coalitions troubles among the
revellers, and Boris Johnson also
popped along sadly stopping short
of playing the clown on the
tightropes and zipwires streaming
across the West End streets.
Got A Story? Email
thecapitalist@cityam.com
13
cityam.com
cityam.com/the-capitalist
THECAPITALIST
A HUGE thank you to everyone
who bid for the City Wenlock
mascot thats been auctioned over the
past two weeks on behalf of the
Mayors Fund for London.
Bidding officially closed on Friday at an
incredibly impressive 16,814, net
proceeds of which will go to supporting
programmes across the capital that
help disadvantaged young people and
their families discover routes into work.
But if you missed out on the pinstriped
gent, dont worry, as there are plenty
more pieces of Olympic history waiting
to be snapped up as part of the
ongoing auction. So make sure you visit
http://l2012.cm/O3r5hn
MONDAY 3 SEPTEMBER 2012
R
e
g
i
s
t
e
r
e
d

c
h
a
r
i
t
y

S
C
0
2
4
4
1
4
Join us for the London Night
Hike Friday 21 September 2012
Enjoy exclusive access to the citys top
architectural spaces, as well as food,
drink, live music and more.
maggiescentres.org/nighthike
in partnership with
Open
City
OpenHouse
London
2012
No going back
now for brave
Shard abseilers
MONDAY 3 SEPTEMBER 2012
14
DASHBOARD CITY
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
Post Office
The mail operator has
announced that Sue Barton is to
join the executive committee as
strategy director. Bartons
experience includes extensive
time within postal consultancy
at Accenture, where she has
worked with many of the
leading international postal
organisations providing support
and advice.
Laxfield Capital
The debt origination and loan manager has announced
that Daniel Smith has been appointed as head of
origination. Smith joins from Eurohypo where he was
managing director. Smith originated and executed a
number of high-profile transactions at the German real
estate bank. Smith has been appointed to help drive the
expansion of the firm in the property debt market.
Riverview Law
The fixed-fee legal services business has appointed
Matthew Banks as its director of legal advisory
outsourcing. Having spent 11 years as a commercial
property lawyer with Linklaters and Eversheds, Smith
moved to Mumbai in 2005 to set up a legal outsourcing
business. Having worked in the UK, Mumbai and New
York, Smith will now be based in London.
Torotrak
The gearless traction drive developer has appointed
Jeremy Deering as chief executive. Deering was an
internal candidate and has previously held the position
of commercial director, as well as having responsibility
for the strategy of the firm. The move follows the
departure of Dick Elsy, who left the company to take up
the role of chief executive of Catapult, the government-
supported programme to help transform UK engineering
innovation into economic value.
Sberbank
Alexander Pletnev has joined the department of
corporate clients (part of CIB) of the Russian savings
bank as deputy head of the structured finance division.
Pletnev has over 15 years of experience working in the
financial industry and before joining the CIB team he
worked at LUKOIL for nine years including four as head
of corporate debt, financial institutions and capital
markets.
UBS
Kai Sotorp will be returning to global asset manager as
head of Asia Pacific. Sotorp was previously head of Asia
Pacific between 2002 and 2004 and head of Americas
between 2004 and 2010. Scott Keller, who has been
acting head of Asia Pacific since April this year, will
continue in his role of head of Pan Asia and will report to
Sotorp.
WHOS SWITCHING JOBS Edited by Yogesh Chandarana
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
CITY MOVES
in association with
LONDONREPORT
More volume is
likely as a new
month begins
M
ARKING the end of the
summer doldrums, Wall
Street is likely to kick off
September with heavy
trading volume while it hopes that
the European Central Bank will hint
at further stimulus measures to
boost the global economy.
On Friday, US Federal Reserve
Chairman Ben Bernanke said that the
central bank stands ready to bolster
the economy if necessary, although
he stopped short of giving an explicit
signal of more monetary easing.
US stocks rallied after Bernankes
speech to an annual conference of
central bankers in Jackson Hole,
Wyoming, with major indexes gain-
ing more than 1 per cent in the late
morning session. At the end of the
day the Dow Jones industrial average
was up 0.7 per cent, while the
Standard & Poors 500 Index was up
0.5 per cent and the Nasdaq
Composite Index up 0.6 per cent.
This (Bernanke speech) was in line
with what we were expecting. He left
the door open but didnt announce
anything explicit. He doesnt intend
to front-run his own FOMC
(policy)meeting, said Liz Ann
Sonders, New York-based chief invest-
ment strategist at Charles Schwab.
Investors are now awaiting com-
ments from European Central Bank
President Mario Draghi after the
banks meeting on Thursday. Many
investors will look to the ECB meeting
to glean strong clues on what to
expect from the Federal Open Market
Committees own policy meeting next
week on Sept 12-13.
Between now and mid-September,
we'll be focusing on the ECB, though
the next FOMC meeting is also
around the time that the German
court meets, so well be getting news
on both those fronts. Any news from
Europe will drive markets more than
domestic news, with the exception of
the payroll report, Sonders said.
The all-important US non-farm pay-
rolls report is due on Friday. With
Bernanke citing poor improvement in
the labor market as part of the reason
the US economy faces daunting
challenges, Fridays data could be a
game changer, according to market
participants.
In the Eurozone, following the
European Central Bank policy
meeting on 6 September, a German
Constitutional Court will rule on the
Eurozones permanent bailout fund
on 12 September, which may affect
the ECBs bond-buying plans.
But there was further uncertainty
within the ECB over President Mario
Draghis bond-buying plan on Friday
after German central bank chief Jens
Weidmann reportedly threatened to
resign, piling pressure on Draghi to
mollify opposition.
For the week the Dow was down 0.5
per cent, while the S&P 500 was
down 0.3 per cent and the Nasdaq
was down 0.1 per cent. For the
month, the Dow rose 0.6 per cent,
the S&P 500 gained 2 per cent and
the Nasdaq climbed 4.3 per cent.
T
HURSDAY will be the highlight of
the week for economists, with all
eyes on results of the European
Central Bank policy meeting.
While the market waits to hear the latest
plans to fix the Eurozones debt problem,
the Bank of England will also be announc-
ing its latest interest rate decision and asset
purchase plan.
However, no change is expected as the
Bank is currently in the middle of its latest
round of asset purchases.
Todays economic news includes PMI
manufacturing data and British Retail
Consortium like-for-like sales information.
Meanwhile, City of London Investment
Group and Cupid are expected to update
the market.
Tomorrows UK economic news includes
Halifaxs house prices report, plus PMI con-
struction data, plus a raft of reports from
the US, including construction spending
figures and vehicle sales.
Reports are expected from Spirit Pub Co,
Hydro, Dechra Pharmaceuticals, Genus,
Johnson Service Group, Monitise, DS
Smith, McBride and Craneware.
Wednesdays news includes PMI Services
while corporate reports are expected from
Advanced Medical Solutions Group,
Hargreaves Lansdown, Berkeley Group,
and Sports Direct.
On Thursday the focus will be on any
announcement from ECB president Mario
Draghi.
Reports are due from Go-Ahead Group,
Hydro International, Interior Services,
Whitbread and WM Morrison. Seymour
Pierce gives Morrisons a hold rating as
first half results will show negligible
growth at best, reflecting the difficult and
highly promotional market place.
At the end of the week, Fridays economic
news is set to include data on new car regis-
trations, plus details on inflation, industri-
al production, manufacturing and
information from the Producer Price Index.
Corporate reports are also expected from
Circle Oil, JD Sports, Laura Ashley and
Prezzo.
UK focus on ECB meeting outcome
BESTof theBROKERS
BAE Systems PLC
p 321
319
320
318
317
316
315
24Aug 28Aug 29Aug 30Aug 31Aug
318.50
31 Aug
BAE SYSTEMS
Morgan Stanley rates the defence firm equalweight but has cut its
target price from 330p to 320p. The uncertainty about governments
defence spending continues to weigh on BAEs earnings growth, and the
broker sees cash returns to shareholders as the key investment case at the
moment. Morgan Stanley expects the firm to maintain a dividend ratio of
around 50 per cent of free cash flow, but to stop short of share buybacks.
FTSE
24Aug 28Aug 29Aug 30Aug 31Aug
5,800
5,780
5,760
5,740
5,720
5,711.48
31 Aug
THE
WEEK AHEAD
Hargreaves Lansdown PLC
p 630
620
625
615
610
605
24Aug 28Aug 29Aug 30Aug 31Aug
621.00
31 Aug
HARGREAVES LANSDOWN
Singer Capital Markers has downgraded the investment manager from
buy to fair value and maintains a target price of 570p ahead of
annual results on Wednesday. The broker expects Hargreaves to have
outperformed the FTSE All Share with a five per cent rise in assets under
administration, driving revenue growth to 14 per cent. Singer forecasts
pre-tax profits of 147.9m, a rise of 15 per cent on the previous year.
SSE PLC
p 1,400
1,380
1,390
1,370
1,360
1,350
24Aug 28Aug 29Aug 30Aug 31Aug
1,368.00
31 Aug
SSE
UBS has upgraded the utility firm from neutral to buy with a raised
target price of 15.15 to reflect growing opportunities in the renewables
industry. The broker expects to soon see the first earnings flow from
SSEs 1bn spending spree on renewables, and there is the prospect of
growth as the gas market recovers. UBS is also impressed by the firms
strong 6.4 per cent dividend yield.
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
I
N THE ongoing debate on
aviation capacity, we have
become gridlocked in a game of
political poker. Nobody is
prepared to grasp the nettle,
despite the obvious benefits
increased capacity would generate
for our economy. We need
international trade to grow.
The default position at the
moment is against the construction
of a third runway at Heathrow, but
if an alternative is to be proposed, it
must be worked up and costed
quickly. Any move to expand an
existing aviation hub, or develop a
new one, would take a number of
years to develop, fund and
implement and we cannot afford
to delay.
N
O ONE should doubt the
seriousness of the public
sector deficit and the need
to reduce it but it cannot
be treated in isolation. In
meeting its promise to explain the
principles by which it would steer
the economy if it gets into power,
the Labour party needs a new
golden rule; not only for the public
sector, but also the private sector
too. George Osborne also needs to
take note, if he is not to continue to
preside over no growth Britain.
On conventional measures, few
economists or commentators dis-
sented from the view that the econ-
omy was performing well before the
crash of 2007. The economy grew at
three per cent a year between 2003
and 2007. Inflation averaged a shade
under two per cent. Measured in
relation to GDP, public sector debt
averaged 35 per cent, while the
annual public sector deficit was
under three per cent. And yet, with
the benefit of hindsight, it is clear
that below the surface, something
strange and disturbing was happen-
ing: from 2002, the business sector
cityam.com/forum
An economy with a
large and chronic
corporate surplus isn't
dynamic or productive
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

16
MONDAY 3 SEPTEMBER 2012
Why we need a new golden rule for
businesses a Labour perspective
started to run surpluses.
In 2002, in the wake of a slow-
down of the world economy, such a
surplus was to be expected. What
was not expected was for this sur-
plus to persist and grow into 2004
and beyond. The private sector con-
tinued to run an annual surplus
through to 2007 after which it
jumped sharply to above five per
cent of GDP, where it has remained
ever since.
Such a large and long-lasting cor-
porate sector surplus is bad for two
reasons. So long as businesses and
households are running surpluses
(as they are), the public sector has to
run a deficit. The public sector
deficit wont come down without
one or more of the surpluses com-
ing down too. The coalition, bank-
ing on a return of normal times,
looked to rebalance exports and
imports but a world economy in
the doldrums has dashed this hope.
No one should want households to
stop saving, so if the public deficit is
to come down, the corporate sur-
plus must come down.
As the most innovative part of the
economy, business is the one that
should be running a deficit, borrow-
ing to invest, exploiting the prof-
itable opportunities it sees and
raising productivity. An economy
with a large and chronic corporate
surplus, which is what we have
today, is the opposite of one that is
dynamic and productive.
By calling for a new golden rule
that takes both the public deficit
and corporate surplus into account,
we are saying that reducing both
should be the governments busi-
ness. Put another way, economic
policy has to be about more than
austerity. Public sector deficit
reduction is needed, but this has to
be linked to the pace at which the
corporate surplus comes down.
How might that happen? A Labour
government might get the priva-
tised utilities to up their investment
spending on things like broadband,
water supply and distribution and
green energy; or insist that firms
pay the living wage; or use invest-
ment allowances instead of corpora-
tion tax cuts (which just increase
profits which are still not spent).
In an important sense, however,
such specifics are up for debate. The
problem we identify is a problem
now, not just in 2015. The policies
may be different, but the need for
government to develop policies
towards the business sector is not.
This requires abandoning a doc-
trine that has held sway for 25
years: that disturbances to the econ-
omy arise in the private sector are
self-correcting, provided only that
the public sector does not desta-
bilise things.
Mainstream opinion is reluctant
to embrace the implication of the
facts. Governments need once more
to develop active industrial policies.
After 2007, in Peter Mandelsons sec-
ond spell as secretary of state,
Labour started to do this. We think
Vince Cable would like to too if
only the chancellor would let him.
This is not a party political issue,
its about the balance of power
within government over economic
policy between the Treasury and
other departments. And change
here might be the hardest change of
all.
Dan Corry is a former Downing Street
and Treasury adviser to the Labour gov-
ernment. Dr Peter Kenway director of the
independent think tank the New Policy
Institute.
A New Golden Rule is published by the
Fabian Society.
While we continue to consult,
our competitors construct. Paris
and Frankfurt both already have
capacity for 700,000 flights a year,
compared to 480,000 at Heathrow.
To claim that Heathrow runs
more flights to business
destinations than any other airport
in Europe is to miss the point.
There is a reason for this: London is
Europes business gateway. Our
aviation infrastructure must reflect
that.
The fact that Heathrow is already
hitting capacity poses a whole host
of problems for London, ranging
from overcrowding to inhibiting
trade with, and investment from,
fast-growing markets. One of the
few certainties in an uncertain
global economy is that patterns of
trade need to change. The winners
will be the most agile.
This isnt just a case of attracting
business from these growing
markets: we must also retain the
talent pool and business spectrum
that we have. Talented individuals
and institutions based on expertise
are increasingly mobile. World-class
air links and aviation
infrastructure are key elements of
the offering to attract them here
and to retain them.
Opponents of expanding existing
capacity suggest that it is a short-
term fix. Yes, perhaps but with no
other plans currently being taken
forward, it would be better than no
fix at all. Increased air capacity,
even if the will existed to go ahead,
could take more than a decade to
plan and implement. We should
not reject new thinking, but we
need to be mindful of time
constraints.
Although technology has made it
easier for business to be conducted
remotely, air services are still a key
factor when companies take
decisions about where to locate.
The teleconference will never
entirely replace the meeting. The
human factor remains essential.
There are always going to be
concerns when new airport
capacity is planned, and the
environmental impact of new
proposals can never be ignored.
However, this must be balanced
against the economic benefits for
the UK.
We must plan now to ensure that
the UK maintains and increases its
hub capacity. This will serve as
another foundation for growth, as a
signal to global investors that
Britain really is open for business.
Mark Boleat is policy chairman at the
City of London Corporation.
CITY
MATTERS
MARK BOLEAT
The hub of the matter: Growing aviation capacity will stop firms taking flight
In association with
DAN CORRY
& PETER KENWAY
17
MONDAY 3 SEPTEMBER 2012
The Forum is open for you to take part. Got a sharp comment on
one of todays columns? Do you have another subject you want
to share your opinion on? We want to hear your views.
Email theforum@cityam.com or comment at cityam.com/forum
The inside man
[RE: Barclays appoints Antony Jenkins as
chief executive, Thursday]
Antony Jenkins is a surprising choice, but it
may have been better if outside executives
were appointed. Take nothing away from
the validity of Jenkinss candidacy; it was
first class. He ticked all the boxes. He was a
Barclays Man through to the core. He is a
retail banking titan, not remotely scarred by
the vagaries of investment banking.
Notwithstanding the fact that Jenkins
ticked all the boxes and maintained conti-
nuity, his appointment came as something
of a surprise to market observers. There will
have been concern over the credibility and
trust gap, which will not have been nar-
rowed by an internal appointment, since
chairman elect, Sir David Walker, cannot be
considered as a long-term proposition. It is
imperative that Jenkins makes further influ-
ential executive appointments from outside
the bank, which would endorse Barclays
commitment to change its culture and
rekindle trust, which has recently dissipated
with regulators and its high street cus-
tomers.
David Buik, Cantor Index
Can you hear the death knell sounding on
investment banking in the UK? This
appointment, like everything else in bank-
ing, was done to appease Joe Public. It is an
absolute outrage.
Christopher Jenson
L
IVING and working in China
where I teach urban design to
eager architecture students
is a constant adventure. Unlike
the UK, where we seem to
spend our time discussing what,
how or even whether to build, it is
exciting to be in a country that is
actually doing it. China is building
20 cities a year. Britain hasnt built a
city in the last 50 years, instead
imbuing existing towns with the
magical label: city status.
I recently returned to the UK to
chair a Bookshop Barnie at Foyles in
Charing Cross Road. These events are
alternative book launches, whereby
an author presents his or her work to
an audience who are yet to be con-
vinced. This time, it was the turn of
professor Robert Skidelsky (coinci-
dentally born in China), who has
written How Much is Enough?
Another in a long line of similar
books that question the merits of
growth and cast doubt on the pro-
gressive nature of economic develop-
ment. This was a shock in China,
enough is never enough.
Over the last ten years, China has
emerged as the second largest econo-
my in the world; its the worlds
largest importer and largest exporter,
and its the largest holder of foreign
reserves. News of its imminent
demise is overstated. This year its
GDP growth slumped to a healthy
7 per cent.
When I visited Londons Olympic
stadium three years ago, the engi-
neers told me that the central aim
was to use one-tenth the steel that
Beijing used. The fact that it looked
one-hundredth as impressive was not
an issue. Chinas economic growth
coincides with its growth in confi-
dence. It is a country in a hurry. It is
not content with enough, it wants
more.
In 20 years, China has elevated
TOP TWEETS
Ambramovich has won a 3bn court case.
Messi to Chelsea? Ronaldo to Chelsea?
Everyone to Chelsea?
@AltFootballRoman
Bernanke stays on the right course by refusing
to print more money which the speculators
were calling for. Next to Mr Draghi.
@SandipSabharwal
When this whole GCSE thing started, I said
that it was deliberate and political. I would
have loved to be have been proved wrong.
@OnlyGeek
I cant wait until Lord Ashdown bumps into
Lord Oakshott.
@LordNortonLouth
Was it a risky move by Barclays to appoint
Antony Jenkins as its new chief executive?
YES
All in all, were pleased with the appointment of Antony Jenkins
but note that it is not without risk. Together, Walker and Jenkins
project a credible and much-needed change in Barclays corpo-
rate culture. In our opinion, former chief executive Bob
Diamonds often brash demeanour exacerbated negative public
and political sentiment towards the bank. Jenkins, with his roots
in retail banking, is likely to scale back on investment banking
and refocus the group on its retail and corporate banking busi-
nesses. It is likely that Jenkins will lean heavily on lieutenants and
on Walkers experience in investment banking as he gets to know
the business. Well watch for signs that he is having trouble man-
aging the complex investment banking business, or for depar-
tures of key people, which could indicate a lack of confidence in
Jenkinss leadership.
Erin Davis is a banking analyst at Morningstar.
Erin Davis
NO
Ralph Silva
Barclays is going through the most challenging period in its his-
tory due to challenges in the investment banking operations.
Having a leader that has a retail background provides a strategic
realignment that will help Barclays. The bank needs its brand
repaired and, in a universal banking model, brand perceptions are
established on a retail level. Having a retail expert in charge pro-
vides Barclays with the quickest path to recovery. I dont believe
an external chief executive would have been a good idea.
Barclays is a very old bank and has a unique, complex culture. An
external candidate would take too long to acclimatise and time is
paramount as the bank remains under intense pressure. Jenkinss
priority must be to bring the litigation issues to an end and find a
balance between retail and investment banking, which will be the
starting point in rebuilding the bank.
Ralph Silva is a banking analyst at Silva Research Network.
RAPIDresponses
300m of its people out of poverty and
urbanised half of its population.
Admittedly, all Chinese statistics are
open to interpretation but it is
unequivocal that Chinese growth
and development has created the
conditions for the greatest, swiftest
improvement in humanitys living
conditions in history.
Admittedly, China is riddled with
contradictions. It is a country of
dynamism and restraint, of exciting
urbanism but terrible urban design;
of space stations and rickshaws; of
leadership elections, where the
Communist Party of China will
appoint a new head of state. But at
least these contradictions are visible
and contested. In the West, we are
growing increasingly glib. It is obvi-
ously legitimate to point the finger
at the lack of democracy in China,
but its not as though we have
enough of it over here (see, for exam-
ple the rise of the Euro-technocrat).
The question is not how much is
enough? It is how to improve the
lives and lot of the millions who
need and want more. Asking peo-
ple to live with less in the middle of a
recession clearly represents a crisis in
confidence about the capitalist proj-
ect. It is richly ironic that it takes a
notionally communist China to
show the West how to realise materi-
al ambition and economic
dynamism.
Austin Williams chairs the Bookshop
Barnie at Foyles Bookshop. The next Barnie
is with Martin Jacques on 26 Oct
www.futurecities.org.uk
AUSTIN WILLIAMS
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As China is getting
bolder the West is
losing confidence
I
F YOURE lucky enough to find that
youve got money left at the end of
each month, the investment
decisions you make now could
make a big difference to the quality of
the rest of your life. However, deciding
how you invest isnt easy. At a time of
stock market volatility, negative real
returns from savings accounts and the
prospect of having to save up to
50,000 for a deposit to get on the
housing ladder as a first time buyer,
where should you start?
If you are considering investing your
capital, it is important to pay off your
debts first. There is no point earning 10
per cent on your investments (in a very
good year), only to pay 20 per cent on
your credit card debts, says Ben Smaje,
managing director at Kennedy Black
Wealth Management. Only once youve
cleared your debts and built up an
emergency fund of six months net
income should you think about invest-
ing.
Once the debts are paid off, Scott
Grant, director of lse.co.uk, advises that
there are four key considerations to
keep in mind: (i) a cash buffer, (ii) an
investment timeframe, (iii) your atti-
tude to risk and tolerance of invest-
ment loss, and (iv) the available
(investment) tax wrappers. Appetite for
risk will vary from one person to the
next, so while some experts argue that
the current economic climate favours a
risk-embracing approach, how aggres-
sive you chose to be hinges on your risk
tolerance, your capacity to absorb loss
and your investment timeframe, says
Teresa Fritz, of MoneyVista. Younger
people have a longer time horizon,
meaning they can take higher risks as
they have longer to ride out any nega-
tive market fluctuations. And investing
is a long-term game.
For as long as mortgage deposits stay
at minimum 10 per cent, some
younger people will see saving for a
property deposit as unachievable, and
may invest their income in other mar-
kets until this situation changes,
according to Oliver Barber, co-founder
of Kingsbridge & Carter. Interest rates
are at record lows and show no sign of
rising. This outlook, combined with
high inflation, means you may want to
put your money into equities to try to
engineer returns. However, if saving
enough for a deposit is a possibility
within two to three years, investing
may not be the best approach. Jason
Hollands of Bestinvest says if your plan
is to buy within the next three years
then shop around for a higher rate sav-
ings account. Your first port-of-call
should be a cash Individual Savings
Account (Isa). But, if its retirement
youre planning for, the earlier you
start investing, the greater chance you
have of achieving your retirement
income goals.
WATCH OUT FOR CHARGES
Some investors are shocked when they
discover how much they are required
to pay for product fees, fund managers,
administrators, custodians, and the
impact this has on their investment
returns. Barber says this problem can
be partially alleviated by buying direct
assets such as land, property and com-
modities, as well as tracker funds and
exchange traded funds (ETF).
Investment funds usually have an
annual management charge (AMC), but
more important is the total expense
ratio (TER) the annual rolling cost
which takes account of all extraneous
charges the fund bears. It could add in
the region of 0.25 per cent to the AMC,
according to Grant. As such, paying to
receive expert advice to help guide you
through the myriad of investment
options can be money well spent. Far
preferable, says Sarah Lord, managing
director of Killik Chartered Financial
Planners, than making expensive mis-
takes through lack of knowledge.
Be selective, shop around, read the
small print, and the value of a well-cho-
sen investment fund will hopefully off-
set their annual costs of 1.5-5 per cent
and the impact of inflation.
MONDAY 3 SEPTEMBER 2012
18
cityam.com
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Dont make a
pigs ear of
investing
There are pitfalls to avoid when losing your
investment virginity, writes Annabel Palmer
n Keep things simple and adopt a long-
term buy-and-hold approach. Avoid
speculating, as this can be a costly mistress.
Tempting and fun, but very expensive.
Ben Smaje, Kennedy Black Wealth
Management.
n An investment trust that invests in
different asset classes (equities, bonds, and
commodities in different geographic
regions) is a good choice. The holy grail of
a portfolio is to give equity like returns with
bond like volatility.
Simon Fentham-Fletcher, Renaissance
Asset Managers.
n Invest in well-diversified funds initially:
this will give you balanced exposure and
dampen the risks associated with
investing.
Sarah Lord, Killik Chartered Financial
Planners.
n Cash Isas work well for those who want
the certainty of capital. But, interest rates
are at historical lows and over time the real
value of cash is eroded by inflation: the
silent assassin of your wealth.
Jason Hollands, of Bestinvest.
n Asia and the emerging markets are
growing at 4-7 per cent per annum, so it
would make sense to have exposure to
these areas of the world.
Simon Fentham-Fletcher, Renaissance
Asset Managers.
EXPERTS ADVICE ON BUILDING AN IDEAL PORTFOLIO
Top tips for
investment
first-timers
19
MONDAY 3 SEPTEMBER 2012
cityam.com
T
HE villa, or riad, that I
rented with friends and
family in Morocco was
luxurious and expensive.
Beautifully decorated with a
lovely garden. It came with staff,
including a young guy, Yassim,
whose job was to take care of our
needs. It was a perfect holiday
except for him.
Eventually I decided we needed
to chat. Yassim, youre a nice guy.
Youre always smiling and happy,
but I have to say you dont seem to
care. You never seem to be around
when we need you, youve given us
bad advice and youve messed up
arrangements. I dont
understand. He answered
honestly: I know youre right. Its
just that the boss doesnt pay me
very much, so I think, why should
I try too hard?
Yassim was missing a trick.
What youre forgetting is the
fantastic opportunity you have.
Youre meeting lots of well-off
foreigners. Sooner or later one of
them will do something here like
build their own riad, buy a hotel
or start a business. If you have
impressed them it wouldnt be
surprising if they hired you for
their new venture and you landed
a dream job. Your friends would
think you were lucky, but I
wouldnt. I would think youve
made your own luck; youve
realised that foreign contacts here
are an asset and youve impressed,
even when you dont know where
the reward will come from. At
least I made him think, and for
the rest of our stay he was spot on.
Motivating staff can be tricky,
but its obviously very important
for all businesses. It is commonly
said that two things drive the
financial markets: fear and
greed. I learnt that kids
basically respond to the same
two influences: threats and
bribes. And employees are
much the same. On the
downside, they are usually
aware of the risk that if
they dont do their job
reasonably well, theyll
lose it. On the upside,
they get paid, which is
simple enough. But
there are many other
ways to reward them.
Providing good
working conditions
such as flexible hours, the ability
to work from home, help with
childcare, transport and even
providing lunch makes for
happier and harder working staff.
It can also help to make people
feel important. I noticed once that
a bank teller in the US had the
rather inflated title of
vice president, which I
thought was silly until I
noticed how happy my own
staff were when given the
title of manager. Simple,
just give their boss the
title of senior
manager.
On the
financial
side,
giving staff equity in the business
can be very effective. The problem,
however, especially with small
companies, is that there is often
no market for the shares and they
cant be cashed in. Or that the
shares fall in value, as happened
in the tech-wreck.
For that reason, bonuses linked
to performance can work
wonderfully, provided of course,
performance is measured properly
(City of London, please take note).
The simplest is to calculate
bonuses as a per cent of profits or
sales, and pay them in cash yearly.
You dont want to under-reward
your staff just ask Yassim.
Since the mid-1990s Richard Farleigh has
operated as a business angel, backing
more early-stage companies than anyone
else in the United Kingdom.
www.farleigh.com
Philip Salter meets the man behind Europes first private satellite communications company
O
N THE wall in the meeting
room of Avantis London
offices just off Shoreditch
high street hangs a piece
of A4 paper in a simple
frame. There, in plain text, Avantis
mission is set out: To be the world
leader in Ka band sitcoms, make
lots of money and have some fun.
Avanti Communications is a
wholesale telecoms service provider.
Perhaps this doesnt sound as excit-
ing as the Tech City start-ups that
neighbour this Aim-listed company,
but this presumption would be a
mistake. While the timid kids of
Silicon roundabout have their feet
firmly on the ground, Avanti is bold-
ly sending satellites up to space.
David Williams, alongside David
Bestwick, founded Avanti
Communications in 2002. Williams
wanted to be a rock-and-roll star at
university, but when these dreams
died he found himself needing a
job. From the back office of an
investment bank he rose through
the ranks until he was helping
secure capital for telecoms and
media companies. In the 1990s,
there were plenty of other compa-
nies who were looking to do what
Avanti are now doing, but Williams
got frustrated trying to develop
strategies to fund these businesses.
The big corporations chickened
out as they lacked the risk appetite.
Williams thought: I believe in this
market, Ill do it myself.
Bestwick is the real brains of this
operation he is the astrophysicist
who came up with the technology.
He had the foresight to know why
we need to remain flexible and why
we need to design the satellite the
way we do, says Williams. He and I
are diametrically opposed in our
skill sets and our characteristics and
our personalities. And we work per-
fectly together.
Avantis international telecoms
network currently consists of two
satellites and four ground stations,
providing very high-speed two-way
data services in about 56 countries
across Europe, the Middle East and
Africa. Differentiating your compa-
ny from the competition is key for
any business. For Avanti, this comes
through the frequency at which it
deals with data. Williams explains
that your iPhone runs on three giga-
hertz, while BSkyB is using around
17 gigahertz. Avantis satellites run
Avanti: Profitting from
a giant leap in data use
Company name: Avanti
Communications
Founded: 2002
Company turnover: 17m
Number of staff: 175
Job title: Chief executive
Age: 43
Born: Cardiff
Lives: Sussex
Studied: Economics & Politics
Drinking: Anything with diet in the
title (sadly)
Currently Reading: Slow Finance,
Gervais Williams
Favourite business book: The Art of
War
Motto: Always have a Plan B
Talents: Playing guitar
Heroes: Margaret Thatcher and
Rupert Murdoch
First ambition: To go to the moon
ENTREPRENEURS
Incentives matter: Motivating staff is a necessity not a luxury
DAVID WILLIAMS
on 30 gigahertz. When he set about
trying to get funding for a Ka band
satellite back in 2002 people thought
we were completely insane for oper-
ating at this higher frequency band.
There was only one guy in the US
doing it and they thought he was
mad too. He is one of one of
Williamss best friends and sold
Hughes Communications last year for
over $1bn.
Williams thinks the worlds
demand for data will keep rising by
25 per cent a year for the next 20
years. But he doesnt affect any pre-
tence of knowledge beyond this. He
says we cannot accurately forecast
what the data market will be doing in
five years time, let alone 20 years
time. And it takes four years to build a
satellite and it then lasts 15 or 16
years. He admits: I did not predict
the iPhone, the iPad, Twitter,
YouTube I didnt predict any of
those things and I was a technology
investment banker for 10 years before
I did this. So we cannot predict the
direction and momentum of travel of
data usage all we know is at the
moment about half of the worlds
population has absolutely no access to
high-speed data; and we also know
that with every year that passes, those
people that do have access to high-
speed data experience an almost dou-
bling of their throughput demand.
Because Williams doesnt know
which regions will experience high
growth and which type of devices will
cause this high growth to come from,
he needs to be as flexible as possible
so that wherever the business is to be
found, he can respond to it. This is
why he builds satellites where he has
the power to turn off all of our
European beams and put all the
capacity into Africa. But when you
put on components that offer
bespoke services you have to take
mass off. It typically means you get
less capacity: We choose to have
more flexibility and the cost of less
capacity and thats because we think
driving down the cost to the very low-
est is not what makes your sharehold-
ers a better return. Time will tell.
Williams credits his staff with
Avants success. He is proud of the
work environment he has built, and
his key piece advice for those looking
to start their own business is: You
shouldnt think of being an entrepre-
neur as going it alone. If you do, you
are making a mistake. An entrepre-
neur needs good advice, needs friends
and needs partnerships.
CV
More Brits want to
be entrepreneurs
of a SERIAL
ENTREPRENEUR
RICHARD FARLEIGH
CONFESSIONS
INNOVATION
DIARY
PHILIP SALTER
nIt has just been revealed that for the
first time since records began, over 20
per cent of the working age population
in the UK expect to start a business in the
next three years, are actively trying to
start a business, or are running their own
business. The research is based on a
Global Entrepreneurship Monitor
programme, which is the largest and
most comprehensive international study
on entrepreneurial attitudes, activities
and aspirations.
nMore than 120 high-potential start-
ups from around the world convened in
London last week to participate in the
Start-Up Games. Gloucestershire-based
Versarien swept to gold; Porto-based
Tuizzi.com got silver; and London-based
MediaDevil took home bronze.
nInnotribe, SWIFTs initiative to enable
collaborative innovation within financial
services, is inviting financial industry and
start-up professionals to participate in
the final phase of the 2012 Innotribe
Startup Challenge. These professionals
will select the most impressive fintech
and financial services innovations to
benefit from a unique networking
opportunity and compete for a $50,000
prize at Sibos in Osaka. Voting is now
open at www.innotribeStartup.com
nMADE, the UKs entrepreneur festival,
is celebrating the vital role of young
people in British enterprise with the
launch of its Change Makers competition,
in association with Coutts. The Change
Makers are an exclusive group of the
countrys 26 most exciting entrepreneurs
under the age of 30. Each has been
nominated for the accolade by a British
business giant, including Dragon Peter
Jones CBE, Betfair co-founder Ed Wray,
and Mobo founder Kanya King. Visit
www.madefestival.com/
the-change-makers to see the full list.
Twitter: Philip_Salter
David Williams at the countdown to launching his satellite
Above: the fabled
black rhino; left: the
Namibian plains; right:
a slice of luxury in the
wild at Kulala Desert
Lodge
A Safari in Namibia
is a unique chance to
see these creatures,
says Dominic Wells
LIFE&STYLE
MONDAY 3 SEPTEMBER 2012
20
cityam.com
TRAVEL
T
HE LAST TIME I came eye to eye
with the endangered black
rhino was in Nepal. We had
woken at dawn to paddle low-
slung boats that barely crested the
surface of the croc-infested river. And
as we trekked through the dewy
grass, the guide gave us the low-down
on rhino-watching etiquette.
If the rhino hears us, or smells us,
you must not run -- unless I tell you. If
I do give the signal, run in a zigzag:
rhinos cannot easily turn. Head for
the trees: if the rhino follows, go
round the tree and whack him on the
nose with a stick. After three times he
will give up.
Excuse me -- hit it with a stick? Thats
seriously the plan? These things weigh
3,000lbs. And whats the strategy, I
asked him, if we come across a tiger
along the way?
The guide smiled, shrugged philo-
sophically, and said simply, Ah! Then
you lay down your life.
We did find black rhino that morn-
ing. Very close, ears swivelling nerv-
ously like little satellite dishes.
Suddenly they started towards us.
Their tiny eyes bored into mine. I
turned to the guide for further
instruction as agreed, but he was
already 30 yards away, running for the
trees...
That was 20 years ago. So when I
heard of a huge expanse of wilderness
in Namibia with the worlds largest
concentration of free-roaming black
rhino, I jumped at the chance of a
rematch as long as I could get a
more trustworthy guide.
In the event, there is no one to
whom I would rather entrust my life
than Christiaan Bakkes, the area man-
ager of the remote Desert Rhino Camp
and its even remoter sister, Serra
Cafema. A giant Afrikaaner with a
lions mane of blond hair, Chris
looked like he could stop a rhino
charge with his head. True, he has
only one arm, having donated the
other to a crocodile in 1994, but it did-
nt slow him down.
Once more we venture forth into
the grrrreat uncharted wilderness,
he would roar, shifting gear with the
stump of his arm and gunning the
converted Land Rover over the rocky
hills. But rhino tracking here, it soon
turns out, is a more serious business.
The population in this million-acre
expanse of scrubland (thats about
1,500 square miles) has doubled since
the 80s, thanks to the joint efforts of
Wilderness Safaris and the Save the
Rhino Trust, but there are still only
150. Tourists are allowed along for the
ride, but the primary purpose of an
expedition is for the Save the Rhino
Trust trackers to catalogue these skit-
tish creatures health, habits and
movements.
The first feeding ground we look in
is a failure but a spectacular one.
Instead of rhino, Chris tracks some
gigantic dung droppings to a whole
herd of elephants, more than a dozen
in all, promenading along the dry
river bed. Its an awesome sight: they
pass slowly, serenely, magnificently
unconcerned about the insignificant
creatures on the hill pointing their
shiny lenses at them.
The problem is, says Chris, elephants
will have driven the rhino away. Now
we might not find any. We drive to a
different valley, while Chris explains
survival tips. His advice is no more
reassuring than the Nepalis was. If
youre charged by a rhino, the best
place you can be is lying on the
ground. Youll get trampled, and that
will hurt, he says, in what couldnt be
a better contender for Understatement
of the Year if you taught it limbo danc-
ing, but he wont be able to get his
horn into you at that angle.
Suddenly, Chris is interrupted by a
low whistle from a tracker. Rhino! We
proceed on foot any engine noise
will spook them. Sometimes you have
to trek like this for hours, Chris
warned us, but we are lucky again:
after just 15 minutes we are crouching
near a mature 20-year-old rhino and
his five-year-old son. We watch them
placidly chow down on some bushes.
We see the father emit a jet of liquid
marking his territory, whispers
Chris. And after a long while, they
trudge off into the hills, and were left
with our Jurassic Park memories, and
a dozen photos.
We take a picnic lunch in the bush.
The plants here are weird, as befits a
place that gets just two inches of rain a
year. The welwitschia looks like a wilt-
ed Triffid and can live for more than a
thousand years. Its huge taproot
makes a good stool. The Euphorbia
Tirucalli, known locally as a Milk Bush,
is a green plant taller than a man
whose milky sap is delicious to a rhino,
but highly toxic to people.
Over the course of the day, we see a
host of animals, all specially adapted
to the harsh desert conditions: the
Hartmanns mountain zebra, whose
hearts are twice the size of a normal
zebras to facilitate rapid escape up
the hills; the long-horned Oryx,
which passes blood through its nasal
passages to cool it down before it
reaches and potentially cooks the
brain; the Springbok, which leaps
high in the air to warn any predator
of the futility of chasing it. Thats
called pronking, says Chris. Or
showing off. A useful insult to file
away and use back in London.
We close with a Sundowner a
G&T to toast the sun setting over the
infinite plains and share a commu-
nal, convivial dinner back at Desert
Rhino Camp with the other guests. To
preserve the delicate balance between
man and nature, eight guest huts are
all the camp allows. Round the camp-
fire, Chris recites poetry (he also
writes books) and we sing a song or
two. Its been an unforgettable day.
We were lucky, says Chris. The eld-
est rhino we saw is named Dont
Worry because hes so calm, and he
made his son be calm too. They sensed
we were near, but they werent scared,
so we could watch them in peace.
Safari can seem like nothing more
than a giant game of Whats the
Time, Mr Wolf or Mr Zebra, or Mr
Lion. You sneak up on an animal, then
run away giggling. But Wilderness
Safaris are different. For nearly three
decades they have worked with chari-
table organisations (including its own,
the Wilderness Trust) and local com-
munities in seven countries across
South Africa, working out how to pro-
tect wild animals through tourist dol-
lars, while not threatening those
animals through over-exposure.
As a result, they have been granted
unique concessions in a staggering
11,000 square miles of land otherwise
inaccessible to travellers, creating
oases of relative luxury under the vast
African skies and their alien constella-
tions. Wilderness Safaris leave a cus-
tomer survey in every room, but
unlike in a hotel the options range
beyond good to extraordinary and
right up to life-changing. In com-
mon with two thirds of guests, I ticked
the latter box.
On the trail of the black rhino...
If youre charged by a rhino, the best place you
can be is lying on the ground. Youll get trampled,
and that will hurt, but youll avoid the horn

A stay at Wilderness Safaris Desert

Rhino Camp costs from 340 per person
per night inclusive with The Zambezi
Safari and Travel Company (www.zam-
bezi.co.uk; 01548 830059). Wilderness
Safaris have also just reopened their
refurbished Kulala Desert Lodge, and
launched their Great Namibian Journey
package: 11 nights accommodation,
food, drink and guided travel in
Sossusvlei, Etosha and Damaraland.
21
TV & GAMES
cityam.com
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BBC1
SKY SPORTS 1
7pmNetbusters 7.30pmLive
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10.30pmSPL Round-Up 11pm
Soccer AM: The Best Bits 12am
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2amSoccer AM: The Best Bits
3amFIFA Futbol Mundial
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SKY SPORTS 2
4pmLive US Open Tennis 10pm
Ringside 11pmThrillseekers
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BBC THREE
7pmDont Tell the Bride 8pm
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Our War 10pmThe Revolution
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7pmHollyoaks 7.30pmHow I
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7pmStorage Wars 7.30pmPawn
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7pmHow the Universe Works
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7pmDr Oz 8pmI Didnt Know I
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12amBaby ER 1amHospital
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5am-6amA Baby Story
SKY1
7pmThe Simpsons 8pmA
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BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News 6.30pmBBC
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7.30pmFake Britain; BBC News
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Panorama
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10pmBBC News
10.25pmRegional News 10.35pm
CHOICE Citizen Khan 11.05pm
Gavin & Stacey 11.35pmThe Lock
Up 12.15amFILMArachnophobia.
1990. 2amWeatherview2.05am
Sign Zone: Engineering Giants:
Ferry Strip-Down 3.05amThe
Riots: In Their Own Words 4.05am
Britains Heritage Heroes
4.35am-6amBBC News
6pmEggheads
6.30pmCelebrity MasterChef
7pmCelebrity Antiques Road
Trip
8pmUniversity Challenge
8.30pmLorraines Fast, Fresh
and Easy Food
9pmHorizon: How Small Is the
Universe?
10pmJames Mays Things You
Need to Know
10.30pmNewsnight; Weather
11.20pmToughest Place to Be a
Nurse 12.20amRichard
Hammonds Crash Course 1.05am
BBC News 3.20amThe Super
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Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
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10.35pmFILMLand of the
Dead. 2005.
12.15amJackpot247; ITV News
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10.30pmThe Last Leg with
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8pmFrontline Police: Rav
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12amThe Hotel Inspector
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5.35am-6amWildlife SOS
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5 6
7
8 9
10 11
12 13 14 15
16
17 18
19
20 21
10 8
23 12
9 22 14
42
11 29
17 5
10 3
44
13 8 12
20 28
6 5
16
26
14
38
16
34
4
13
14
15
4
27
11
7
15
13
22
15
30
17
ACROSS
1 Birthplace of
Mohammed (5)
4 Quantity of twelve
items (5)
7 Goggling, as in
surprise (3-4)
8 Particular items (5)
10 Domesticated (5)
12 Former Nigerian
capital (5)
14 Words used to refer
to people, places
or objects (5)
16 Divisions of a dollar (5)
17 Reddish-brown
hair dye (5)
19 Traveller (7)
20 Central pillar of a
circular staircase (5)
21 Ocean-going vessel (5)
DOWN
1 Hilary ___, winner
of the 2009 Man
Booker Prize (6)
2 Cofee shop (4)
3 Mollify (7)
5 Take too much
medication (8)
6 Number indicated
by the Roman XI (6)
9 Fortication
fenced with a line
of stout posts (8)
11 Hold spellbound (7)
13 Nobody
specically (6)
15 Bracing atmosphere
by the coast (3,3)
18 Indian bread, baked
in a clay oven (4)
A
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4

4

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4
D E P O S I T E D
C N C M G F
L A D L E P A G E R
O U A Y E O E
S K E I N L A N C E
E N G V
C R E S S H E N C E
A V T E A A R
L E A K Y B O O K S
L N L I M E
A S C E R T A I N
7 9 5 9 6 4 7 8
3 7 1 8 4 1 2 3
3 9 9 2
5 7 4 2 1 3 1 8
9 8 7 5 6 1 3 4 2
5 2 1 8 9 5
3 9 6 7 8 5 4 2 1
2 6 8 9 7 6 3 5
9 4 2 1
7 9 8 6 3 8 6 9
2 4 7 3 1 2 1 3
4
4
4
4
4
4
4
4
4
The nine-letter word was
DEPLORING
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
MONDAY 3 SEPTEMBER 2012
CITIZEN KHAN
BBC1, 10.35PM
Mrs Khans mother comes to stay,
jeopardising Mr Khans big opportunity
to hob-nob with the bigwigs of
Sparkhill Business Association.
A MOTHERS SON
ITV1, 9PM
A woman stumbles upon evidence that
suggests someone in her family may
have been involved in a murder.
Drama, starring Hermione Norris.
CELEBRITY WEDDING PLANNER
CHANNEL5, 10PM
Neighbours star Ryan Moloney
(Toadfish Rebecchi) and former
castmate Mark Little (Joe Mangel) plan
a wedding in a zoo for a London couple.
TVPICK
IN BRIEF
Hodgson happy with frontline
nFOOTBALL: England manager Roy
Hodgson has decided against calling
up a replacement for injured West
Ham striker Andy Carroll, leaving him
with Danny Welbeck, Jermain Defoe,
Theo Walcott and Daniel Sturridge as
his four forward options for the
fixtures against Moldova and Ukraine.
Ramsay wins European Masters
nGOLF: Scotlands Richie Ramsay
yesterday secured his second Tour win
with victory at the European Masters.
Khan looks for trainer change
nBOXING: Amir Khan admits he is
likely to change trainers before his
next fight. I want to make a few
changes and am in talks to change
trainers at the moment, he said.
ENGLAND captain Alastair Cook
insists his team will not rest on their
laurels despite cementing their
status as the top one-day side in the
world with a comfortable win
against South Africa yesterday.
The home side strolled to a six
wicket victory with more than three
overs to spare at Lords, reaching 224-
4 after South Africa could only
manage 220-8.
This side has got its future ahead
of it, rather than behind it, Cook
said after the match.
Were still striving to improve in
all areas. Weve only been together
really now for a year or so. Weve had
some really good results but we
certainly dont feel like were the
No1 side.
The second straight one-day win
gives England a 2-1 lead in the series.
They will hold onto their world No1
spot irrespective of the result of the
final match, played at Trent Bridge
on Wednesday.
South Africa started the day well.
Despite being put in to bat under
gloomy conditions that boded well
for Englands seam attack, the
tourists reached 68-0 by the end
of the 19th over helped by James
Tredwell dropping two chances
at slip.
Yet Graeme Smith was caught
behind with the first ball for the
20th over, and fellow opener Hashim
Amla went five overs later to a
brilliant seam ball from Ravi Bopara.
With their tails up, Tredwell tried
some spin for the next over and took
the wicket of Jean-Paul Duminy
and just three overs later Faf du
Plessis was dismissed by Bopara to
leave South Africa stuck on 114-3.
They reached 160-4 going into
the last 10 overs yet lost four more
wickets as they tried to up the
run rate.
England then took an early hit as
Cook was trapped LBW by Dale
Steyn. Yet Ian Bell and Jonathan
Trott gained control with a 141 run
partnership, Trott reaching 48
despite playing on with an injured
hand after another thunderbolt
from Steyn.
Bell finally succumbed to Steyn
on 88 runs while Bopara
disappointed with just six runs. But
Eoin Morgan and Craig Kieswetter
finished the job with a 38 run stand
that ended with the latter driving a
ball over the Pavilion End boundary
for a six, to seal Englands win.
England stay
top but Cook
calls for more
ARSENAL manager Arsene Wenger
hailed a colossal midfield perform-
ance from Abou Diaby after the
Gunners plundered their first
Premier League win of the season
and turned up the heat on new
Liverpool boss Brendan Rodgers.
Summer signings Lukas Podolski
and Santi Cazorla neatly teed each
other up for a goal apiece as the
north Londoners condemned the
Reds to their worst start to a season
for 50 years.
But Wenger singled out Diaby,
who offered a glimpse of a talent too
often hampered by serious injury
with a dynamic, resolute
and nuanced display and who
inspired Arsenals best counter-
attacking moves.
Its massive for us because hes a
tremendous football player with
absolutely everything you want in a
midfielder, Wenger said of the
France internationals flirtation with
prolonged fitness.
He hadnt played a game for a
year but he had a good pre-season
where we just gave him 45 minutes
every three days. Now he looks physi-
cally in good shape. There is more to
come from him but what he has
shown today is already very good.
Rodgers admitted he would not
have let 35m misfit Andy Carroll
leave on loan to West Ham last week
had he known the club would fail
to secure a striking replacement
before the transfer window closed
on Friday.
The former Swansea manager is
hopeful, however, of signing a free
agent in tie to be registered by tomor-
rows squad deadline and talked up
interest in unattached former Reds
striker Michael Owen.
I cant say no. Any player I believe
can improve the squad, I will look at,
said Rodgers. We have a very
small group. We had
19 training [on Friday].
It is something
that would have to
be discussed.
Both sides front-
lines went into the
match with points
to prove, with close-
season arrival Fabio
Borini and Luis Suarez
yet to click for Liverpool
and Arsenal without any goals at all
since May.
The visitors discovered the fluency
lacking in previous outings, however,
with Diaby, Mikel Arteta and Cazorla
dictating play and the latter instru-
mental in Podolskis opening goal.
In the 31st minute, the German
international pounced on a wayward
pass by England captain Steven
Gerrard, fed Cazorla and darted 60
yards up the left flank to collect
the return pass and drive a low
shot underneath goalkeeper
Pepe Reina.
When Arsenal struck
again, with 22 minutes left, it
was the same pair who prised
Liverpool open again, this
time Cazorla trading passes
with Podolski before driving in
from the left and embarrassing
Reina at his near post.
Wengers other summer buy,
Olivier Giroud, missed a chance to
open his own account but that disap-
pointment was outweighed by start-
ing a campaign with three clean
sheets for the first time in 88 years.
Gunners recruits find feet as
Rodgers rues Carroll absence
88
Years since Arsenal
started season
with three clean
sheets
Santi Cazorla scored one and set up forward Lukas Podolski for Arsenals opening goal
MANCHESTER United manager Sir
Alex Ferguson praised Paul
Scholes for turning his 1000th
league match in charge of the
club from a disaster into a
victory after his side had trailed
2-1 at Southampton.
We didnt start playing until
Paul Scholes came onto the pitch,
Ferguson said. When they scored
we were well out of the game, and
Scholes came on and brought a
consistency of passing.
First Ricky Lambert
and then
Morgan
Schneiderlin had
given
Southampton
the lead before
Robin van
Persies hat-
trick secured
Uniteds
fortunate win.
NEWCASTLE manager Alan
Pardew accepted his side were
perhaps fortunate to have gained
a point against Aston Villa and
accepted that they were well
below their best.
Our set plays were awful, he
said. There was a lot of things
wrong with our game and we
caught Villa at a bad time, with
two defeats they were armed to
come and have a go, and they
worked their socks off for
[manager] Paul [Lambert].
Hatem Ben Arfa equalised for
Newcastle after Ciaran Clarks
22nd-minute opener.
Scholes made
the difference,
says Ferguson
DEFENDING US Open champion Sam
Stosur last night lauded Laura
Robson as one of the sports rising
talents after eliminating the Briton
with a 6-4, 6-4 win in the
tournaments fourth round.
The resilient Robson saved eight
match points before Stosur secured
victory after 98 minutes of a match
in which the world No89 fought to
become the first British female to
reach the quarter-finals at Flushing
Meadows in 28 years, and the
Australian afterwards admitted that
her rapidly improving opponent had
provided a significant challenge.
It was getting a little close there,
she said. It was one of those things
Stosur: Resilient Robson has
got a great future in tennis
were you had to try not to get too
frustrated or too down with yourself.
I think shes a very good player. Shes
very young and has lots and lots of
years ahead of her. She hits the ball
great and really thinks things
through when shes out there. Shes
one of those players well certainly
have to look out for in the future.
The crucial stage of the match
came at 4-4 in the first set but
Robson was unable to capitalise on
two break points and thereafter
Stosur gradually edged ahead.
British No1 Andy Murray today
faces the big serving Milos Raonic of
Canada and can expect lower
temperatures after appearing to tire
in the heat of Saturdays 7-6, 7-6, 4-6,
7-6 victory over Feliciano Lopez.
Point enough
for Pardew
MONDAY 3 SEPTEMBER 2012
22
SPORT
cityam.com/sport
BY JULIAN HARRIS
BY DECLAN WARRINGTON
Robin van
Persie scored
LIVERPOOL ................................0
ARSENAL....................................2
BY FRANK DALLERES
PREMIER LEAGUE
SOUTHAMPTON ......................2
MANCHESTER UNITED.............3
BY DECLAN WARRINGTON
PREMIER LEAGUE
NEWCASTLE.............................1
ASTON VILLA............................1
BY SPORTS DESK STAFF
PREMIER LEAGUE
@cityam_sport
Ian Bell secured 88 runs for England
23
Britain beat
Beijing gold
medal haul
We are not running in a fair race here. I cant
compete with Alans stride length
Oscar Pistorius after Brazils Alan Oliviera beat him in the 200m Paralympics final

cityam.com
MONDAY 3 SEPTEMBER 2012
HARLEQUINS director of rugby
Conor OShea admits he has no idea
how his side staged such a dramatic
comeback to beat London Wasps
on Saturday after falling behind by
27 points.
I dont know how we won that,
said OShea after watching his side
secure four tries in 10 minutes when
five from Wasps had given the 2008
champions a 40-13 lead. I do not
want to go through that again.
It was in the Premiership double
header at Twickenham that that
match was played and in the second
Quins excitement scares OShea
with Welsh toppled by Leicester
of the two, Saracens convincingly
beat London Irish 40-3 to inspire
Chris Ashton to declare that their
previously conservative approach to
rugby would no longer persist.
To put 40 points on London Irish
is a good start, Ashton said after
scoring two of the games tries in an
impressive debut. We want to play
and we want to move the ball.
In their Premiership debut,
London Welsh yesterday lost 13-38 in
a convincing win for Leicester.
Aviva are proud to be title sponsor of
Aviva Premiership Rugby one of the
world's leading rugby union competitions.
Visit www.premiershiprugby.com
BY DECLAN WARRINGTON
GREAT Britains track and field
Paralympic athletes yesterday
surpassed their Beijing 2008 gold
medal haul by adding two to
the total of 17 medals won
throughout the day.
Golds for Aled Davies and David
Weir, respectively in the F42 discus
and T54 5000m, supplemented
the silvers of F24/44 long jumper
Stef Reid and T36 100m sprinter
Graeme Ballard.
Britain also topped the cycling
medal table with gold for Anthony
Kappes and Craig Maclean and silver
for Neil Fachie and Barney Storey in
the individual B pursuit and in the
womens event Aileen McGlynn and
her pilot Helen Scott took bronze.
Rik Waddon, Darren Kenny and Jon-
Allan Butterworth took silver in the
C1-5 sprint final.
In equestrain, gold was won in the
mixed team dressage and Sophie
Christiansen, Deborah Criddle and
Sophie Wells respectively took gold,
silver and silver in the grade 1a,
grade III and grade IV individual
dressage events. Swimmers James
Clegg and Hannah Russell both took
bronze in the 100m butterfly S12,
while Jessica-Jane Applegate won
gold in the 200m freestyle S14 with a
Paralympic record of 2:12.63.
Will Bayley won table tennis silver
in the class 7, and rowers Pam Relph,
Naomi Riches, David Smith, James
Roe and Lily van den Broecke took
gold in the coxed four LTAMix4+.
BY DECLAN WARRINGTON
BRITAINS Jenson Button dismissed
his hopes of staging a late charge
for the title after claiming his first
win since the opening race of the
season with a pole-to-flag triumph
at a chaotic Belgian Grand Prix.
Button avoided a spectacular
four-car crash on the first corner,
which ended the afternoons of
McLaren team-mate Lewis
Hamilton and drivers
championship leader Fernando
Alonso, before cruising to victory.
It is a good 25 points, and if we
can keep fighting for victories like
this there is still a small chance I
can fight for that championship,
but going to [the next race in]
Monza, I dont think about the
championship, said Button, who
now lies 63 points behind Ferraris
Alonso with eight races left.
Red Bulls Sebastian Vettel fought
from 10th on the grid to finish
second, and move to within 24
points of Alonso, while Kimi
Raikkonen took third for Lotus.
Hamiltons race lasted just
seconds as Romain Grosjean veered
too close and touched his front-left
wheel, sending the Frenchmans
Lotus flying over Alonso, missing
the Spaniards head by two feet.
The Englishman was earlier
involved in more controversy when
he was ordered by McLaren chiefs to
remove an image he had posted on
Twitter of technical data relating to
his and Buttons qualifying laps, for
fear it would give rivals an edge.
BY FRANK DALLERES
Button rejects title talk after Belgian victory
In aid of
HAC Benevolent Fund
Tickets available at www.hacpolo.co.uk
Tickets from 10, Children 5, Under 5s go FREE
Matches include:
The IG Index 105
IG Index HAC Arras
Vs Hackett Army

Bahamar Cup
IG Index HAC Bullecourt
Vs Army Reserves

HAC SC Vs RAF
Military Displays
including:
HAC Pikemen & Musketeers
HAC Light Cavalry
HAC Band
HAC 105 Polo Invitational
Saturday 8th September 2012
Ham Polo Club, London Gates Open at 11am
Enjoy the BIG PARTY afterwards
105
H O N O U R A B L E
A R T I L L E R Y
C O MP A N Y
Honourable Artillery Company
Benevolent Fund.
(Registered charity no. 208443-1).
HAC Pikemen & Musketeers HAC Light Cavalry Foxhound HAC Band
Results
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TODAY AT THE
GAMES
Jessica-Jane Applegate won a gold medal
Watch out for
n Irelands Michael McKillop
participates in the T37 1000m final;
British swimmer Sacha Kindred is
involved in the 200m SM6 mens
individual medley; equestrian Lee
Pearson aims for success in the mens
individual freestyle test; Will Bayley
challenges for gold in the Mens table
tennis at the ExCeL; Great Britains
mens 7-a-side football team will be
looking to bounce back from their
preliminary defeat to Brazil when
they take on Ukraine
China
GREAT
BRITAIN
Australia
35
16
14 11 18
TOP 3 MEDAL TABLE
24
24
28
14