Cityam 2012-11-14

BUSINESS WITH PERSONALITY
Energy secretary Ed Davey wants watchdogs to get to the bottom of wholesale gas trades
www.cityam.com FREE
FTSE 100 5,786.25 +18.98 DOW 12,756.18 -58.90 NASDAQ2,883.89 -20.37 /$ 1.59 unc / 1.25 unc /$ 1.27 unc
ISSUE 1,760 WEDNESDAY 14 NOVEMBER 2012
See Pages 2-5
CITYA.M.
CHRISTMAS
APPEAL2012
PROUDLY
SPONSORED BY
WITH
OPPORTUNITY
INTERNATIONAL
MATCHING YOUR
DONATIONS WITH
GIVING PEOPLE THE OPPORTUNITY TO BUILD A FUTURE
Certified Distribution
01/10/12 til 28/10/12 is 129,297
FRESH claims that traders fiddled the
wholesale gas price surfaced yesterday
as the government pledged to ensure
the full force of the law is used on
those found abusing the market.
Energy secretary Ed Davey yesterday
stressed the coalitions absolute deter-
mination to clamp down on any abuse
that is uncovered, wherever it might
be and by whomsoever it might have
been committed.
The Financial Services Authority and
energy watchdog Ofgem are probing
allegations from a whistleblower that
traders who submitted prices for the
National Balancing Point (NBP) trading
hub called in artificial values.
Price reporter Seth Freedman went
public with claims that traders manip-
ulated the market on 28 September,
the year-end for the gas market and a
key benchmark for future prices.
He said traders used the settling
time of 4.30pm to their advantage,
making unusually small bids at that
time to influence the next days price.
Its a complete Wild West in the
market for that period, especially the
few seconds before [the assessment
period expires at 4.30pm], claimed
one UK gas trader yesterday.
Another former trader at ICIS Heren,
the reporting service that collates the
price, told the Guardian yesterday that
he thought the market was also being
manipulated in 2011.
Because over-the-counter deals are
between private parties rather than
through an exchange, services such as
ICIS set a benchmark value based on
declarations from traders.
Concerns were raised last year about
the regulation of the process, and the
International Organisation of
Securities Commissions and the EU
are trying to tighten up the rules.
Consumer Focus said the wholesale
gas price makes up around 50 per cent
of the average household bill, though
no evidence has emerged to suggest
that the trades might have altered
retail gas prices.
The big six UK energy firms, which
are among the 50 or so participants in
the NBP, have denied any involvement
in suspicious trading.
The Office of Fair Trading stands
ready to join the investigation if cus-
tomers are found to have been affect-
ed, Davey told the House of Commons.
The minister drew parallels with the
Libor scandal, pointing to the coali-
tions plans to crack down on bench-
mark-rigging since Martin Wheatleys
review into Libor.
Last night the spotlight also fell on
the electricity market, with one for-
mer trader telling ITV News that price
fixing occurred among a small num-
ber of traders.
BY MARION DAKERS
ENERGYROWHEATSUP
ALLISTER HEATH: Page 6

2
CITYA.M.
CHRISTMAS
APPEAL2012
CITYA.M. CHRISTMAS APPEAL2012
3 CITYA.M. CHRISTMAS APPEAL2012
GIVING OTHERS
A WORKING CHANCE
An everyday scene in Kumasi, Ghana, where Opportunity International is doing sterling work
4
T
ODAY City A.M. is launching
its annual Christmas appeal
after an extremely successful
debut appeal a year ago. As a
newspaper that has become a
standard bearer for private
enterprise and individual
responsibility, Im delighted that
we are continuing our partnership
with Opportunity International, a
brilliant charity that helps poor
entrepreneurs worldwide build
independent and prosperous lives
for themselves by lending them
money to grow their own
businesses.
It is the perfect charity for City
A.M.s readers and for all of those
who believe in the transformative
power of capitalism and market
institutions. If you believe in a
handup, not a handout, this will be
the perfect cause for you this
Christmas.
Opportunity International
provides financial services
(microloans and savings) and
business training to more than
2.3m people (84 per cent of whom
are women) in 21 developing
countries. It also provides
innovative micro-insurance that
today protects 3.5m lives.
The charitys patron is HRH The
Princess Royal, who has travelled
to Ghana and other countries in
support of its projects.
Our appeal will be asking
readers for donations to help
Opportunity International expand
their work across Africa. As it did
last year, the UK government will
match every personal donation
from our readers pound for
pound (up to a limit of 5m)
almost doubling its value.
Our series on the appeal will
run until the last week before
Christmas, during which time we
will carry interviews and profiles
of City supporters of Opportunity
International and also, crucially,
of any major new donors who
decide to back our appeal and
who want their support to be
made public.
The phone lines are open. Many
lives have been touched by
Opportunity International in
Africa and many City folk are
already contributing.
We are grateful to Prudential
for its sponsorship of the appeal
as well as to Citigroup. These two
organisations we already know are
active in assisting Opportunity
International.
Please give generously if you
can and thanks in advance for
your support.
allister.heath@cityam.com
EDITORS
WELCOME
ALLISTER HEATH
See how your
money can give
opportunities to
women like Beatrice
We hope to beat that this year and be the number one appeal
City A.M.s Christmas appeal
outstripped most rivals in 2011
THE
CAPITALIST
CALLY SQUIRES
LAST years City A.M. Christmas
appeal raised almost 1.6m a
hugely generous showing by our
readers and the second highest
grossing Christmas newspaper
appeal of 2011, according to industry
estimates.
The total from last year was, in
part, made possible by the
governments UK Aid Match scheme
that matched public appeal
donations pound for pound.
Andrew Mitchell, secretary of state
for international development at the
time, said of last years appeal: This
is a hugely generous response from
the readers of City A.M.
Weve matched readers
donations pound for pound in
recognition of this overwhelming
public support for Opportunity
Internationals work.
Our total last year included many
generous donations from a number
of large corporations including
Lloyds Banking Group and Bank of
America Merrill Lynch.
This year we hope that not only
will such firms extend their
generosity again, but that individual
readers will do the same, as they did
so kindly last year. Having beaten
our initial financial target of
250,000 in 2011, we are hoping to
smash it again in 2012.
City A.M. is grateful for any
donations our readers make, and The
Capitalist will update you on the
progress of the appeal over the
coming weeks, starting with the
launch dinner in Fridays edition.
Thanks in advance for your help
Opportunity International is a great
charity.
BEATRICE and her family are
among the many that were
helped by the money raised from
the appeal last year.
Full Name: Beatrice Boaten
Gender: Female
Age: 60
City, Country: Kumasi, Ghana
Children: five aged 18 to 34
Husband: David, age 72
What type of business do you
operate?
I own a three acre cocoa farm
and my husband also has his own
three acres of cocoa. I inherited
mine from my father. We both
farm cocoa and also oil palm and
plantain; but cocoa is our most
profitable crop.
What is your loan history?
My first loan ever was from
Opportunity last year for 134.
The money allowed me to buy
enough fertiliser, gloves, insecti-
cide and spray tools to look after
my piece of land.
What kind of training have you
received?
Opportunity have given me train-
ing in financial management and
have shown me how to save, as
well as the importance of saving. I
had no training in finance before
this. Before becoming a farmer I
was a teacher and also the head-
mistress of a school. However I
stopped this job several years ago
and took retirement. I am meant
to get a pension of 40 per month,
but most months I receive noth-
ing.
How did the loan from
Opportunity help in both your
business and personal life?
The loan is good because it
means that my farm is more pro-
ductive. I can now make more
money and look after my family
which makes me very happy.
How has your business grown
since you came to Opportunity?
Before the loan I had a very small
yield. My yield has definitely
increased with the use of the
inputs like the fertiliser and insec-
ticide. I would say about a 20 per
cent increase this year. Next year I
want to double this.
How has your Opportunity
experience changed your life?
Because of the loan I am now a
lot more financially secure. I have
been able to build an extension
CHRISTMAS APPEAL
Here we have
the perfect
charity for all
our readers
CITYA.M
4.2m jobs have
been created or
sustained since 2011.
Each job, on
average, benefits a
household of five
140 average
agricultural loan
98 per cent of all
loans are repaid
84 per cent of the
clients are women.
Women reinvest
business profits into
their childrens
education, nutrition
and healthcare
900,000 people in
Africa have an
Opportunity
International
savings account
Meet Opportunity
Give someone Oppor
Beatrice, pictured second from
right, at work in Kumasi, Ghana
5 CITYA.M. CHRISTMAS APPEAL2012
Text donations may not work from company
mobile phones as these often block premium
messages.
If donations exceed our programme needs in
Africa, they will be deployed elsewhere.
Our 1.58m total
from last year was
made possible by
the governments UK
Aid Match Scheme.
The UK Government
will match all UK
public donations up
to a total of
5m.
next to my house to accommodate

more family, which has helped to
improve the relationships within
the family. We now eat much bet-
ter and we are able to buy things
that we couldnt afford before like
soap and shoes. We are living bet-
ter than we have ever done and I
am lucky to be able to pay for
things for other people in the com-
munity when they need them.
What is the best thing about
having found Opportunity?
Before Opportunity came along I
had always wanted to extend my
house. Now I have done this I know
now that as long as Opportunity is
around I can achieve my financial
goals. For me, being able to achieve
these goal is very important. It
means myfamily and I can be com-
fortable and have hope for thefuture.
I am delighted that City A.M. and Opportunity
International have again partnered for this very special
appeal. Having visited Opportunity Internationals work I
have seen first hand the difference that its microfinance
programmes make to poor people. A small loan of 140
can transform a poor persons business and give them a
hand-up out of poverty. I am sure that the readers of City
A.M. understand the value of this approach and will
support this appeal.
Im delighted that for the second year running well be
matching pound for pound all public donations to this
appeal. That means Opportunity can create jobs and
provide loans, insurance and savings schemes for
hundreds of thousands more of the poorest peo-
ple in sub-Saharan Africa, letting them take con-
trol of their own lives.
Bring opportunity to 330,000 people. With your support they
will work their way out of poverty and an Opportunity savings
account gives them a safety net. Edward Fox, Chief Executive, Opportunity International
2012
Princess Anne,
HRH The Princess Royal, Opportunitys Patron
Justine Greening,
Secretary of State for
International Development
Opportunity International provides micro-finance
and business training and works to improve finan-
cial literacy around the world. These priorities are
well aligned with Prudential's corporate responsibili-
ty activities through which we deliver projects with
an emphasis on education, particularly financial
capability.It is a privilege for Prudential to have a
chance to support Opportunity International's mission to
provide opportunities for people in poverty to
improve their lives, their self-belief
and their self-esteem.
online at:
www.cityam.com/appeal
70070
TWEET
by text
Opportunity International
(01865 725 304)
credit or debit
card by phone to
#cityamappeal
CITY13 and amount
(5 or 10 only) to
with details of why youve
donated. These comments
may be printed in future
editions of City A.M.
HOW TO
GIVE
tunity this Christmas
Proudly
sponsored by
Matching your
donations with
GIVING GENEROUSLY
City A.M . 1.58m
The Times 700,000
Telegraph 660,000
Guardian & Observer 400,000
Tidjane Thiam
Group chief
executive, Prudential
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Markets wobble as eyes
stay fixed on euro talks
MARKETS took a hit yesterday from
strife between key bailout
providers to crisis-struck Greece,
yet later recovered as hopes rose
that Spain might finally request a
full sovereign bailout.
The euro sank to a two month
low, touching $1.266, as the
International Monetary Fund (IMF)
admitted differences of opinion
between it and the Eurogroup
of finance ministers from euro
area states.
We clearly have different views,
said Christine Lagarde, head of the
IMF. What matters at the end of
the day is the sustainability of
Greek debt so that country can be
back on its feet.
Splits have also emerged this
week over the means of ensuring
that Greeces debts become sus-
tainable, casting doubt over talks
to deliver the country new tranch-
es of bailout cash.
Also contributing to bearish feel-
ing was a Zew indicator of econom-
ic sentiment in Germany, which
dipped by 4.2 points this month to
an index score of -15.7 points.
Investors were relieved yesterday,
however, as Greek authorities
raised most of the funds needed to
refinance 5bn of treasury bills
this week and avoid a default.
Government to delay welfare reform
The government is prepared to delay its
flagship welfare reform amid fears the
complex changes may need to be more
thoroughly tested before being extended
to all benefit claimants. Universal credit,
under which six benefits will be
incorporated into a single payment, lies at
the heart of a drive by Iain Duncan Smith,
work and pensions secretary, to ensure
people are better off in work than on
benefits. But it has been dogged by fears
that the IT required to implement it may
not work and concerns over the cost.
BBC ponders new director-general
Trustees of the BBCs governing body are
planning to meet on Thursday to finalise
plans for the appointment of a new
director-general amid growing calls from
senior political figures for the role to be
redefined.
Video games lift Vivendi target
Vivendi, the French entertainment and
telecoms conglomerate, has increased its
adjusted net income target to 2.7bn
(2.1bn) for 2012 as it benefits from
strong sales of video games at Activision
Blizzard, the maker of Call of Duty.
Michael Gove plans big job cuts
Running costs are to be cut by half at the
Department for Education in a radical
experiment that may be copied across
Whitehall About a quarter of the
departments workforce face redundancy
Moscow in London retail challenge
London is the most attractive location for
international retailers expanding in
Europe, but Moscow is catching up fast,
according to property consultant Jones
Lang LaSalle.
SFO director admits to failings
The Serious Fraud Office has been
suffering from a failure in quality and
needs to up its game, its new director
David Green told MPs on the Justice Select
Committee yesterday.
Bercow accused of rigging watchdog
John Bercow, the Commons Speaker, has
been accused of rigging appointments to
the independent MPs expenses watchdog
in revenge for its crackdown on what
members can claim.
Zynga makes more changes
Social games maker Zynga said yesterday
chief mobile officer David Ko would
become chief operating officer, while
chief financial officer David Wehner is
leaving for a senior position at Facebook.
Nokia launches maps service
Nokia is adding 3D technology to its
mapping software and launching a new
location service as it looks to boost its
influence among users of Googles
Android software and Apples devices.
THE GLOBAL derivatives market
shrank for the second consecutive
six-month period in the first half
of 2012, and continued the
downward trend experienced since
the start of the financial crisis,
according to figures out yesterday
from the Bank of International
Settlements.
The total notional amounts of
over the counter (OTC) derivatives
outstanding fell to $639 trillion
(402 trillion) at the end of June,
down one per cent on the year.
In part that came from the
appreciation of the US dollar over
the six months to June, as well as a
continued trend for trade
compression the practice of
netting out contracts between
counterparties so each has the
same amount of coverage and
exposure but in fewer overall
contracts.
But the period also saw a two per
cent drop in interest rate contracts
and a six per cent fall in credit
derivatives. The Swiss National
Banks cap on the value of the
Swiss franc increased market
certainty for that currency and
pushed down volumes of related
derivatives by 24 per cent.
But overall foreign exchange
contracts outstanding rose five per
cent to $67 trillion as not all
markets hold such certainty.
Derivatives
trading shrinks
on weak dollar
Christine Lagarde wants Greece to stick to its targets for reducing its debt to GDP ratio
6
NEWS
BY TIM WALLACE
BY JULIAN HARRIS
To contact the newsdesk email news@cityam.com
I
N his bestselling book Trust,
Francis Fukuyama argued that
social capital is an essential
prerequisite to prosperity. High-
trust societies enjoy complex
networks of voluntary associations,
and this creates a climate conducive
to commercial cooperation,
entrepreneurship, the building of
large companies and international
trade. He warned in the 1990s that
trust was in decline in the US;
research by YouGov suggest that this
process of social disintegration is
certainly accelerating in the UK.
The decline in trust in many profes-
sions is astonishing. BBC news jour-
nalists were trusted a great deal or a
fair amount by 81 per cent of the pub-
lic in 2003; this is down to 44 per cent
today. Senior police officers are down
from 72 per cent to 49 per cent; senior
civil servants from 26 per cent to 21
EDITORS
LETTER
ALLISTER HEATH
Scandals have made the UK a dangerously low-trust society
WEDNESDAY 14 NOVEMBER 2012
per cent. Trust in family doctors,
school teachers, trade union leaders,
local police officers and judges has
also been significantly eroded. Just 38
per cent trust upmarket papers, down
from 65 per cent. Even estate agents
are down, from 16 per cent to 10 per
cent. The City and financial firms
have clearly suffered a massive loss of
trust. The only slightly surprising
finding is that local MPs are only a lit-
tle less trusted: down from 44 per
cent to 37 per cent. More intuitively,
all the parties are hugely mistrusted,
even by many of their own voters: just
16 per cent trust top Lib Dems, 19 per
cent top Tories and 23 per cent top
Labour politicians.
Of course, excessive trust is a bad
thing. It breeds complacency and an
ultra-deferential society which does-
nt question elites or the received wis-
dom sufficiently. Figures of authority
arent always right; sometimes, they
commit horrendous crimes. They
often make mistakes. Scientists, econ-
omists, doctors, policemen, judges or
bankers can all be horribly wrong.
But extreme lack of trust isnt
healthy either: when nobody believes
anything anybody says, we end up
with ignorance, fear and misery, with
conspiracy theories and mob rule
(including of the digital kind) replac-
ing sensible, rational debate.
It is also in this context that the
Libor and other interbank lending
rates, but also energy, commodity
markets and all other indices. There
are always bad apples in every walk of
life. They need to be rooted out and
punished.
White collar crime, if that is indeed
what has happened, needs to be pun-
ished severely. It is only when wrong-
doers are routinely jailed regardless
of profession, income or status that
the criminal law will properly act as a
deterrent and that the public will
realise that the authorities are seri-
ous. in most cases, the decline in trust
that affects so many UK institutions
was deserved. Those who messed up
must show that they have changed
and start the fightback to regain the
publics confidence.
recent energy manipulation allega-
tions must be seen. Markets needs to
be transparent and reliable. Investors
need to assume that prices are a true
reflection of supply and demand.
They need to be able to trust organ-
ised markets; in the wake of Libor,
which virtually everybody trusted too
much, they cannot. So the claims that
there may have been some dodgy
dealings in the wholesale energy mar-
ket with several individuals going
on the record with such allegations
is a matter of extreme seriousness.
The good news is that even if such
manipulation did take place it does-
nt seem to have had any impact on
prices charged to consumers or com-
panies. In some cases, prices may have
briefly been pushed down. That, how-
ever, is scant consolation. The author-
ities must ensure that all wholesale
markets are clean and that includes
It expects to bring in the rest by
tomorrow.
Greeces debt agency, PDMA, sold
4.062bn of one- and three-month
treasury bills.
Following its early dip, the euro
recovered to around $1.2707.
Stocks also pared earlier losses. The
MSCI world equity index rose 0.01
per cent to 322.81, after hitting its
lowest point since early September.
And in Spain the IBEX index rallied
1.7 per cent, while its bond yields
eased slightly amid speculation that
the government might be close to
asking for a sovereign bailout.
Yet in the US the Dow Jones ended
the day down 0.46 per cent at
12,756.18 as fresh data acting as a
reminder of the governments mam-
moth deficit and debt levels, and
signs emerged that Republicans and
Democrats remain obdurate over
moves to avoid a so called fiscal cliff
hitting the economy in January.
The US public deficit climbed to an
eye-watering $120bn last month, up
22 per cent from a year earlier.
Each year the US state is spending
over $1 trillion more than it collects.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
IN BRIEF
Lagardere to sell EADS stake
nFrench media group Lagardere said
yesterday it will probably sell its 7.5
per cent stake in Airbus owner EADS
by the end of next year. Chief
executive Arnaud Lagardere said it
was more than probable that the
group would sell its stake, after the
firm called off merger talks with BAE
Systems last month. His comments are
the latest sign of instability in the pact
that unites EADS core shareholders,
with key member Daimler also having
made clear its plan to exit.The future
composition of the pact - designed to
maintain the balance between the
company's French and German
shareholders - remains cloudy. EADS
and BAE blamed Germany for
wrecking the $45bn (28bn) plans to
merge.
Ivy agrees Madoff scheme payout
nNew York investment adviser Ivy
Asset Management has agreed to pay
$210m (132m) to settle lawsuits for
advising clients to invest in Ponzi
schemer Bernard Madoff, the citys
attorney general Eric Schneiderman
said yesterday. Ivy, a subsidiary of
Bank of New York Mellon, withheld
damaging information about Madoff
to make millions of dollars in fees,
Schneiderman said in a statement.
Clients lost more than $236m when
Madoff's Ponzi scheme collapsed, the
statement said. Ivy is pleased to have
reached an agreement that allows it to
put these matters behind it, Douglas
W Squasoni, the companys chief
restructuring officer and chief
investment officer, said yesterday in a
statement.
PROMINENT UK-based multination-
al firms are on the cusp of receiving
enormous payouts from the
Treasury after a European court yes-
terday ruled in their favour on a
landmark tax case.
Lawyers now say the total bill owed
by the government could reach bil-
lions of pounds, depending on how
many applications follow the deci-
sion.
In a test case the European Court
of Justice yesterday decid-
ed that British American
Tobacco (BAT) had been
unlawfully charged UK
corporation tax on div-
idends received from
overseas subsidiaries
between 1973 and 1999.
The court ordered Her
Majestys Revenue &
Customs (HMRC) to
return this
money, say-
ing it
Taxman to pay
out billions to
multinationals
BY JAMES WATERSON amounted to discrimination because
during the same period British firms
did not have to pay corporation tax
on earnings from UK subsidiaries.
Jake Landman of law firm Pinsent
Mason yesterday told City A.M. that
HMRC would now have to fight fur-
ther court cases to avoid the final bill
spiralling out of control.
Some claimants made claims as
early as 2003 while some were made
more recently. There is a possibility
that later claims are time-barred, he
explained. At this stage were look-
ing at the government owing hun-
dreds of millions.
BAT said the ruling vindicated its
decision to fight against historic
cases of double taxation while
HMRC said it was disappointed but
vowed to fight on.
As a result the taxman said there is
currently no tax to be repaid follow-
ing this judgment.
Blankfein bearish on outlook as
Goldman names new partners
THE INVESTMENT banking
downturn does not look like
coming to an end any time soon,
Goldman Sachs boss Lloyd
Blankfein warned last night, ahead
of the bank today trimming
partner numbers to save costs.
Sometimes cycles can last a very
long time, he told a banking
conference, according to
Bloomberg. But Blankfein also
warned the industry against
cutting too many jobs, arguing that
BY TIM WALLACE in the past banks have succumbed
to the temptation to hire excessively
at the top of booms and cut back
too deeply in the trough.
Roughly 70 partners are expected
to be appointed today, down from
110 in the last round of promotions
two years ago. It follows a week-long
process of cross-ruffing, an
intense vetting system where staffs
performance is analysed and their
colleagues interviewed.
The biennial round of
appointments determines who gets
an extra stake in the profits the
bank makes, and harks back to an
age when banks partners owned
the firm entirely, rather than
external shareholders.
Between 15 and 20 per cent of
partners leave the firm between
each round of appointments, often
leaving to retire or take senior roles
in institutions like hedge funds.
But although those departing are
usually replaced, not all of those
positions will be filled this year,
thanks to the sustained tough
market conditions putting pressure
on banks to cut costs.
George Osborne could face
a new fiscal headache
LAWSUITS against banks over
Libor manipulation could be so
expensive that their credit ratings
get cut, leading ratings agency
Moodys warned yesterday.
It came as it emerged 10 senior
traders at RBS are being
investigated by US authorities for
fixing the banks submission to
the key inter-bank lending rate.
Moodys said the combination
of regulatory fines, litigation
settlements and other damage
for example to banks reputations
could have a severe effect on
their financial positions, making
Libor could hit banks ratings
BY TIM WALLACE
them worse credit risks for
investors.
With litigation efforts in their
very early stages, the magnitude
of any monetary damages or
settlements is difficult to
quantify, but they could
ultimately have credit-negative
implications, the agency warned.
Even the largest banks could be
at risk, Moodys said. They may
have higher capital levels than
smaller banks, allowing them to
better absorb costs but their
higher levels of transactions may
also leave them open to far
greater fines and levels of
litigation.
7
NEWS
cityam.com
Goldman Sachs boss Lloyd Blankfein is choosing new partners carefully
CONSUMER price inflation rocketed
higher in October, due to tuition fee
hikes and booming food prices, data
revealed yesterday.
The jump defied Bank of England
expectations that inflation would fall
towards its two per cent target.
This jump might have been a factor
in the Banks decision to hold fire on
more quantitative easing (QE) policy
last week, analysts suggested, as Bank
rate-setters were shown early figures
before their meeting.
Inflation soared to 2.7 per cent on
the consumer price index (CPI) the
Office for National Statistics (ONS)
said yesterday, up from
2.2 per cent in
September, pinning
the 0.47 percentage
point leap on
tuition fee hikes.
University fees were
19.7 per cent higher
than a year ago,
according to
Inflation flies
further away
from 2pc target
BY BEN SOUTHWOOD
ONS figures, which take into account
not only new first years facing a high-
er cap, but also second and third years
paying fees at the old rate, and unaf-
fected postgraduate students. This big
rise made up 0.32 percentage points of
the total jump in the rate.
The next biggest effect came from
climbing food and drink prices, which
made up 0.16 percentage points of the
overall change.
Analysts speculated that these big
jumps in inflation measures helped
convince Bank rate-setters to hold off
on extra QE in last weeks meeting.
Yesterdays figures are likely to have
been a key driver in the vote not to
sanction further QE this month, said
Philip Shaw at Investec.
Analysts said the rise adds to indica-
tions that inflation would remain
stubbornly above the Banks two per
cent target well into the future. Chris
Crowe at Barclays said inflation would
hit 3.4 per cent in the summer of 2013.
THE EUROPEAN Union yesterday
significantly softened its plans to
force more equal representation on
non-executive boards.
This came after the plans to force
strict 40 per cent quotas were met
with fierce opposition from firms,
womens groups and member
states including the UK.
The new plans will only require
member states to impose sanctions
on firms who fail to favour equally
EU waters down gender quota
plans after business opposition
BY BEN SOUTHWOOD qualified female candidates for
board positions, according to
sources in the European
Commission (EC).
Culture secretary Maria Miller, a
long-time opponent of rigid quotas
last night explained British
opposition to the original plans.
The way to [achieve equality] is
not through special treatment or
regulation like the ECs quotas
idea, which patronises women it
is about removing the barriers to
achieving their goals, she said.
8
NEWS
cityam.com
Bank boss Sir Mervyn King
is under pressure on rates
S
O
U
R
C
E
:

O
F
F
I
C
E

F
O
R

N
A
T
I
O
N
A
L

S
T
A
T
I
S
T
I
C
S
VODAFONE swung to a shock loss in the
first six months of the financial year,
the mobile telecoms giant revealed yes-
terday, as recessions in southern
Europe hit its bottom line.
The firms shares fell four per
cent to yearly lows, with the
groups performance missing
forecasts.
The fall came despite the firm
announcing a share buyback
programme using money from
its US joint venture
Verizon Wireless, which
said on Monday night it
would pay Vodafone
$3.8bn (2.4bn) in div-
idends this year.
Vodafone wrote
off 5.9bn from its
Vodafone falls to
loss as European
troubles mount
BY JAMES TITCOMB
Spanish and Italian businesses yesterday
as it said service revenues from its
southern European businesses had
declined by 10 per cent.
The company posted a 1.9bn loss in
the half-year period, after a 6.6bn prof-
it in the same period last year. Total rev-
enue declined by 7.4 per cent to 21.8bn.
In the short-term, our results reflect
tougher market conditions, the compa-
nys chief executive Vittorio Colao said,
although he also said he was positive
about the longer-term opportunities.
The UK business turnover fell
3.2 per cent, although it
migrated more people onto
lucrative pay-monthly smart-
phone contracts.
UKTI thanked former ambassadors such
as Sir Victor Blank for their hard work
Vittorio Colao said he was
confident of a turnaround
DAVID Cameron has decided to
drop several leading City figures
from the list of UK business
ambassadors, it was revealed
yesterday.
Those told their services will no
longer be required include Sir
Victor Blank, the former Lloyds
chairman who oversaw the banks
disastrous merger with HBOS.
Ex-Merrill Lynch banker Bob
Wigley and Baroness Hogg,
chairman of the Financial
Reporting Council, have also been
removed from the list.
The Prime Ministers decision
Top City figures are dropped as
Camerons trade ambassadors
BY JAMES WATERSON
was taken with Lord Marland,
who chairs the ambassador
programme. They also resolved
that in the future all those
involved must have a senior
executive role.
The ambassador roles are
unpaid but holders are expected
to promote British business
abroad during the course of their
day jobs and attend UK Trade &
Investment events when possible.
Cameron also appointed seven
new business ambassadors,
including Arle Capital chairman
Sir George Buckley and Lucian
Grainge, the chairman and chief
executive of Universal Music.
BOTTOM LINE: Page 10

9
NEWS
cityam.com
SERVCORP, THE WORLDS
FINEST SERVICED OFFICES
Level 17, Dashwood House
69 Old Broad Street, London
T l 0207 786 6700
Level 18 Canary Wharf
40 Bank Street, London
T l 0203 059 7945
VIRTUAL OFFICE -
EVERYTHING BUT THE OFFICE
140 locations worldwide
W l servcorp.co.uk
Your dedicated receptionist
Your prestigious address
Worldwide access to boardrooms,
meeting rooms and business lounges
1ST MONTH FREE
NO FURTHER OBLIGATION
Hi, Im the
new boy in
town
Come
Visit!
A RECENT recovery in the TV adver-
tising market cheered ITV investors
yesterday, sending shares in the
broadcaster up nine per cent.
The company said a recent decline
in ad revenue had been halted in
September. Although ad sales had
fallen six per cent year-on-year in the
third quarter, there was only a one
per cent fall in September, suggest-
ing a recent recovery.
The vast majority of the sales drop
was felt in July and August, when the
Olympics and Paralympics on the
BBC and Channel 4 dominated view-
ing figures.
Overall, the companys revenues
rose four per cent in the first nine
months of the year to 1.57bn,
thanks to a strong showing from the
firms production arm, ITV Studios.
Revenue rose 20 per cent at the
division, which has had a particular-
ly good year due to the success of hit
show Downton Abbey. ITV Studios
now accounts for more than a quar-
ter of revenue, with the bulk still
coming from the broadcasting and
online division, where revenues were
relatively flat.
ITV shares soar
as advertising
bounces back
BY JAMES TITCOMB This has been an extraordinary
year for UK television with many
unique events including the Queens
Jubilee, the London Olympics and the
Paralympics, chief executive Adam
Crozier said yesterday. In fact nine
out of the top ten programmes aired
will not return next year and as we
expected this has affected our view-
ing performance.
The company also said a cost-saving
drive was ahead of schedule. ITV said
it expects to save around 30m this
year 10m more than expected.
With [advertising] agencies having
seen a slowdown in September, we
were prepared for the worst. In the
event both the operational trends and
the outlook are better than expecta-
tions, Citis Thomas Singlehurst said.
Downtons high-profile fan proves studio is booming
BOTTOM
LINE
ELIZABETH FOURNIER
Itv PLC
13Nov 7Nov 8Nov 9Nov 12Nov
88
90
86
92
94
96
98 p
94.80
13Nov
BWINS co-chief executive was
yesterday questioned by Belgian
gambling authorities over the
firms activities in the country.
Norbert Teufelberger was
speaking at a gaming conference
in Brussels when officers from the
Belgian gambling commission
approached him.
Bwin is disputing an internet
block on its Belgian operations,
which is costing the company
560,000 a month in revenues.
Belgium only allows firms with
offline licences to operate, a policy
bwin says conflicts with EU law.
Belgium grills
bwin co-chief
BY JAMES TITCOMB
CHIPMAKER AMD has hired JP
Morgan Chase to explore options
which could include a potential
sale, according to people familiar
with the situation.
One of Silicon Valleys oldest
chip firms, AMD is laying off
engineers and some analysts are
concerned it may not find new
markets for its chips in time to
reverse a declining cash reserve.
The company said it was not
actively pursuing a sale.
Shares in the company surged as
much as 18 per cent on reports
before finishing up five per cent.
Chip firm AMD
considers sale
BY CITY A.M. REPORTER
10
NEWS
cityam.com
A
FTER months and months
spent out on the campaign trail
supporting husband Barack
Obama, no one could begrudge
the newly elected First Lady of the
United States a little downtime.
Particularly not ITV, which yesterday
said it had been only too happy to send
Michelle Obama preview copies of
Downton Abbey, so eager was she to
kick back and catch up on the third
season of the channels flagship peri-
od drama ahead of its US release next
January.
Of course it was also fantastic PR for
the firm, which yesterday impressed
investors with a four per cent rise in
group revenues driven largely by its
in-house studio business, which has
gained a legion of followers in the US.
Shows such as Gordon Ramseys
Hells Kitchen and Downton helped
the production unit grow revenues by
20 per cent and chief executive Adam
Crozier now expects ITV Studios to
report over 100m in profit in 2012
more than enough to offset a dip in
national advertising revenue (NAR)
inevitable after the BBC and Channel
Four scored coverage of the summers
Olympic and Paralympic Games.
A breakdown of the figures certainly
doesnt imply itll be an ongoing prob-
lem while NAR was down 10 per cent
and nine per cent respectively in the
core-Olympic months of July and
August, it recovered to just -1 per cent
in September, and management
expects the figure to be broadly flat for
the full year.
Meanwhile chief executive Adam
Crozier continues to impress with his
cost-cutting prowess, no doubt learn-
ing from his experiences at the helm
of Royal Mail to come in 10m ahead
of his original savings targets for this
year.
Shares in ITV jumped almost 10 per
cent yesterday, bringing total gains
over the past year to an impressive 44
per cent.
Endless Saturday nights filled with
the X Factor may be getting repetitive,
but ITVs performance seems to have
investors hooked for now.
EURO-GLOOM SPREADS TO VODAFONE
Also reporting yesterday, Vodafone did-
nt have quite such glamorous news
for investors. A drop in service revenue
of 9.8 per cent across southern
Europe not to mention a massive
6bn writedown, blamed on strug-
gling economies in Italy and Spain
led to an overall revenue fall of seven
per cent, and a loss for the first half of
1.88bn. Its share price over the past
year tells a similarly gloomy story
down seven per cent compared to the
FTSEs gain of four per cent, with a
12.5 per cent drop just in the past
three months.
But its not all bad news. Underlying
profits actually rose 6.5 per cent over
the six months, and boss Vittorio
Colaos decision to hold onto a stake
in US service provider Verizon
Wireless was finally vindicated late on
Monday when it announced a divi-
dend that would pay Vodafone 2.4bn,
allowing it to instigate a 1.5bn share
buyback that should help support the
share price for the time being.
Elizabeth Fournier is news editor of
City A.M. @ej_fournier
THE WATERLOO & CITY line is set to
run a regular Sunday service for the
first time in 65 years, City A.M. has
learned.
The news will be a welcome boost to
shops and restaurants in the City of
London as well as good news for
commuters who are forced to work on
the sabbath.
The London Underground route,
which runs from Waterloo to Bank,
last had a full weekend service in the
1940s and trains now only run for lim-
ited hours on Saturdays.
But following a successful trial dur-
ing this summers Olympics, work is
underway to run a full seven-day serv-
ice. A new timetable, which is current-
ly being drafted, is expected to be
introduced in summer 2013 and will
see services run during the same
TfL to open the
Waterloo & City
line on Sundays
hours as the rest of the network.
At the moment the last Saturday
train runs at 6.30pm and there are no
trains at all on Sundays.
Charlotte Fletcher, general manager
at shopping centre One New Change,
told City A.M. that the news will help
boost business at weekends: Were
delighted that the Waterloo & City
line is reopening on Sundays. The City
of London has fast transformed into a
vibrant place to shop and socialise
seven days a week.
A TfL spokesman said: We are cur-
rently looking at whether it would be
viable to operate the line on a perma-
nent basis on Sundays, however this is
still under consideration.
The line is the shortest on the
Underground and its regular closures
have made it a popular location for
filmmakers, with the opening scene
from the film Sliding Doors filmed on
the W&C platform at Waterloo station.
One New Change, next to St Pauls, would benefit from the improved transport links
EXCLUSIVE
BY JAMES WATERSON
11
NEWS
cityam.com
CITYAMCAREERS.com
IN BRIEF
Afren tops $1bn revenue mark
nRevenue at energy firm Afren
smashed through the $1bn (630m)
barrier for the nine months to
September, up 245 per cent on last year.
Pre-tax profit soared 264.7 per cent,
coming in at $411.8m over the period.
The record results were driven by year-
on-year increase in production from two
fields offshore Nigeria. Production
started at the Okoro field after a
discovery in January, and it has been
producing at a rate of 5,000 barrels of
oil a day, the firm said yesterday.
Petra Diamonds agrees new debt
nMiner Petra Diamonds has agreed
new debt facilities of $244m (154m) to
finance the expansion of two South
African mines. The new facility will be
used to expand the Finsch and Cullinan
mines in South Africa, as well as helping
the groups working capital needs. In the
three months to September, revenue
rose 188 per cent to $51.1m, and output
soared 70 per cent. Chief executive
Johan Dippenaar told City A.M. diamond
prices would tick up next year, and that
the market would steady in 2013.
Anglo says Brazil project costs soar
n Mining giant Anglo American warned
yesterday that its Brazilian Minas-Rio
iron ore project was unlikely to cost less
than $8bn (5bn), more than three
times the original estimate. The 26.5m
tonnes a year project, which has faced
licensing challenges, is under review to
assess the impact of the delays. Minas-
Rio has suffered a string of delays and
cost overruns, but Anglo American still
anticipates the mine to start production
in 2014.
PRIVATE equity owned wealth man-
ager Quilter yesterday confirmed it
had bought investment firm Cheviot
Asset Management to create one of
the biggest independently owned
wealth managers in the UK.
Quilter, owned by mid market
European private equity firm
Bridgepoint, will acquire Cheviot
using cash provided by Bridgepoint.
The amount paid for the firm was
not disclosed.
The tie-up will lead to the
creation of a new company,
Quilter Cheviot, with
12.3bn of assets under
management putting it
in the top three independ-
ently owned wealth man-
agers in the country.
The sale is a success
story for Cheviot founder
and chief executive
Michael Kerr-Dineen, who
Quilter bolts on
Cheviot Asset
Management
BY MICHAEL BOW
set up the firm in 2006 after poach-
ing 92 staff from investment bank
UBS.
Kerr-Dineen will act as an adviser to
the new firm. Quilters current chief
executive Martin Baines will take the
reins at the enlarged group.
Its not being done for defensive
purposes, Kerr-Dineen told City A.M.
Theres a huge gap in the market
between the big banks, which are rid-
dled with conflicts, and the old fash-
ioned client broking model, which is
dead.
The modern client is
savvy. Its all very well
going on personal rela-
tionships, which we are
good at but youre basi-
cally here to make
clients money and pre-
serve their capital.
Quilter Cheviot will
have 13 offices across
the UK, Ireland and
Jersey with
524 staff
in total.
Leading a consortium of advisers was Ian
Bagshaw from law rm Linklaters. Bagshaw
is co-head of the private equity sector and
has some worked with private equity
nanciers on some of the biggest deals.
Bagshaw, who advises on every kind of
leveraged merger and acquisition as well as
offering restructuring advice to private equi-
ty houses, worked with Quilter on this deal.
He was made partner at Linklaters in 2007
having been a partner at Clifford Chance for
three years previously. Bagshaw has a long
standing relationship with Quilter, having
originally advised on the original acquisi-
tion of Quilter by Bridgepoint from Morgan
Stanley.
He also advised on Tritons sale of Bravida
to recent US presidential candidate Mitt
Romneys old rm Bain Capital as well as
Tritons $1.1bn acquisition of Ambea from
private equity rm 3i.
Bagshaw also worked with private equity
colossus The Carlyle Group on its acquisition
of a majority stake in ADP from Palamon as
well as well as China Investment
Corporations minority investment in Apax
Partners. Elsewhere on the deal, PwC pro-
vided additional nancial and tax due
diligence advice to Quilter and Bridgepoint,
while Deloitte offered advice to Cheviot.
ADVISERS LINKLATERS
IAN BAGSHAW
LINKLATERS
12
NEWS
cityam.com
Cheviot founder Michael Kerr-Dineen will act as an adviser to the new firm
Martin Baines is now head
of Quilter Cheviot
COMPANIES in the US could unleash
a wave of special dividends before
the end of this year in order to avoid
forthcoming tax rises, according to
research released yesterday.
President George W Bush cut taxes
on dividend payments in 2003 but
this is due to expire at the end of
December. As a result the top rate of
dividend tax for individuals will rise
from 15 per cent to 39.6 per cent.
Data provider Markit suggests at
least 80 companies will look to hand
extra cash back to investors before
the changes take place compared
to a fourth quarter average of 31
special dividends in normal years.
Barring a last minute
Congressional extension, it would
benefit shareholders if companies
declare and pay special dividends
prior to the year-end expiration
date, Markit says.
The report draws comparison with
the end of 2010, when the
exemptions were originally expected
to expire: Special dividend
announcements spiked [and]
companies with dividend payment
dates in early January moved their
schedule to accommodate a payment
in December.
A substantial number of the
payments came from firms with no
regular dividend programme and
many had executives with large
shareholdings in their own company.
US firms set to
hike dividends
before tax rise
BY JAMES WATERSON
VEYSEL Aral, the chief executive of
Kazakhstan's largest mobile tele-
phone operator, Kcell, said yesterday
his group was planning a public list-
ed offering in London because the
UK capital had a sophisticated
investor base and was a key hub for
emerging markets companies.
Kcells decision to list its shares
here and in Kazakhstan is a boost for
the City, which has hosted just four
main market listings in 2012, well
down on previous years.
Aral said that to the best of his
knowledge neither majority share-
holder TeliaSonera nor the groups
banking team ever seriously consid-
ered listing anywhere else,
such as New York. There
are more than 10 Kazakh
companies listed here in
London, he said, includ-
ing Kazakhmys and ENRC.
In its upcoming flotation,
Kcell, which is being
advised by Credit
Suisse, UBS and
R e n a i s s a n c e
Capital, will see
Kazakhstans
Kcell says City
is a key IPO hub
BY DAVID HELLIER
the stake held by Nordic telecoms
group TeliaSonera come down from
around 80 per cent to around 60 per
cent in a transaction that could see
the seller raise around 500m.
The deal is likely to compete for
investor attention with MegaFon,
Russias second-biggest mobile opera-
tor, which aims to raise $2bn in a
London IPO by the end of the year.
Kcell, whose distinctive purple logo
appears on billboards and store fronts
around Almaty, Kazakhstans com-
mercial capital, has 12.7m sub-
scribers in the ex-Soviet republic,
giving it a market share of nearly 48
per cent.
The company generated revenues of
$1.19bn last year and net profit of
$446m. The Ebitda margin was 59.2
per cent.
In the first nine months of this
year, revenue was $888m, net profit
$307m and Ebitda margin 56 per-
cent. Our board... adopted a deci-
sion to pay out a minimum 70 per
cent of our net income as divi-
dends, Aral said.
Veysel Aral likes the
Citys investor base
SECURITY firm G4S said yesterday
that a third director has left the
company following its Olympic
Games contract blunder.
It is understood Mark Hamilton,
a former bodyguard to Beatles star
Sir Paul McCartney and the man
who led G4Ss Olympics team, left
the worlds biggest security firm
by mutual consent.
Chief operating officer David
Taylor-Smith and global events
director Ian Horseman Sewell
resigned in September after an
internal review into the contract,
while chief executive Nick Buckles
Third G4S director stands down
after Olympics contract fiasco
BY CATHY ADAMS held onto his job.
G4S was due to provide 10,400
staff for the 2012 Olympics, but
said two weeks before the event it
could not provide enough staff,
requiring 4,700 military staff to
step in and make up the shortfall.
Last week it was announced that
G4S had lost its contract to run
Wolds prison, and had failed to
make the shortlist for several
other jails.
G4S last week posted 6.3 per
cent revenue growth over the nine
months to September, yet it said
the US government market and
European pipeline would remain
challenging.
14
NEWS
cityam.com
Model shown is a Carrera 4S Coupe at 88,774.00 including first year road fund licence and first registration fee. Fuel consumption figures for the new 911 Carrera 4S Coupe in mpg (l/100km): Urban 19.9 (14.2);
Extra Urban 37.7 (7.5); Combined 28.5 (9.9). CO2 emissions (g/km) 234.
Two impressive red lines.
The new 911 Carrera models.
The redline of a Porsche 911 has always been impressive. For almost 50 years now, each new generation has pushed the boundaries
of performance further and further. The new 911 Carrera 4 models are no exception. As well as their legendary all-wheel drive handling,
they feature broad shoulders, making for a striking presence.
And the iconic red LED light strip across the rear, means other road users can now appreciate the red line of a 911 too.
To find out more visit www.porsche.co.uk/redlines
Mark Hamilton (left) was a former bodyguard for Sir Paul McCartney (right)
THE BANK of Englands deputy gover-
nor Paul Tucker is now widely expect-
ed to take the top job next year, after
Sir Mervyn King steps down.
Chancellor George Osborne will
announce the next head of the Bank
of England in his Autumn Statement
on 5 December.
The winning candidate will take on
a role far more powerful than the one
Sir Mervyn is leaving, as the Bank is
gaining increasing powers over the
financial sector, in addition to its
interest-rate setting authority.
Tucker is well placed, with years of
experience at the Bank, and Paddy
Power yesterday slashed the odds on
his appointment to 1/3.
But the race is not yet over, as
Tuckers lack of private sector experi-
ence will count against him, as does
his apparent closeness to Barclays
leadership in the Libor-fixing scandal.
Financial Services Authority (FSA)
chairman Lord Adair Turner is the
next most likely candidate, with the
Punters back
Tucker in race
to be governor
BY TIM WALLACE regulatory experience required to run
the newly powerful Bank, but also
private sector knowledge.
Previously at Merrill Lynch and
Standard Chartered, he knows the
industry, but has been out of it for
long enough to avoid damage from
the sectors current poor reputation.
However his lack of popularity in the
City has pushed his odds down to 7/1.
Santander chairman Lord Terence
Burns spent his career as an economist
in the civil service. He was not an early
frontrunner, but has attracted late
attention to bring him ahead of Lord
Turner on 13/2.
Banking reformer Sir John Vickers is
also in with a shot after his proposals
to shake up the industry attracted
widespread support.
The runners and riders are rounded
off with Liberal Democrat MEP Sharon
Bowles. The chair of the European
Parliaments monetary affairs com-
mittee hopes she can provide an out-
siders point of view, while making use
of strong relationships with regulators
and central bankers across Europe.
Chancellor George Osborne will name the next governor in the Autumn Statement next month. Paul Tucker is the odds-on favourite to take the top job
THE BANK of Englands finance
sector models are hopelessly out of
date, leading the central bank to
wrongly push for banks to hold
more capital even though the
sector has made enormous
progress since the financial crisis, a
top analyst warned yesterday.
Policymakers at the Bank have
repeatedly said banks will see the
cost of equity fall potentially to as
low at five or six per cent if they
raise capital levels further.
But UBSs Alastair Ryan warns
this is based on market data that is
years out of date.
The Bank of Englands
argument is based on a model that
is at its most powerful when
markets see banks as grossly over-
leveraged, he said.
Bank of England is hit for using
old data to push for capital hike
BY TIM WALLACE
The policymakers conclusions
are drawn from 2008-9 when
markets discovered banks were in
this position. But as capital levels
have risen, diminishing returns set
in, and we can see how markets
treat banks now.
Instead, he doubts the cost of
equity will fall below 11 per cent.
Ryan also warned the European
Central Banks latest policy of
promising to buy Spanish bonds
will only work in the short term,
leading to another year of
recurring crises in the Eurozone.
The outright monetary
transactions (OMT) programme
could buy perhaps 200bn (160bn)
of Spanish debt what can the ECB
do next? Ryan asked. This is only
a stop gap, and, like previous
programmes, will be at its most
powerful before it is triggered.
FIELD NARROWS IN THE RACE TO BE BANK OF ENGLAND GOVERNOR
15
NEWS
cityam.com
Taking Spread Trading
to new heights
ActivTrades has been providing innovative online FX trading for over 11 years, giving
us plenty of time to perfect services that meet our clients needs.
Our spreads start at 0.8 pips, and through the MT4 and MT5 platforms you can
trade a wide range of financial instruments, including FX, indices and commodities.
The minimum stake is always 10p per point, and we offer leverage up to 400:1. Our
market execution ensures there will be no re-quotes, and you can even benefit from
positive slippage should the market move in your favour.
All client money is held in segregated accounts, enjoying enhanced protection
beyond the minimum requirements established by our regulators, the FSA.
We invite you to visit us online and discover more at www.activtrades.co.uk
Est. 2001
Forex | Spread Betting | CFDs
RISK WARNING: All financial products traded on margin carry a highdegree of risk to your capital. They
are not suited to all investors and you can lose substantially more than your initial investment. Please
ensure that you fully understand the risks involved, and seek independent advice if necessary. ActivTrades
PLC is authorised and regulated by the Financial Services Authority, FSA registration number 434413.

to ne
p aking S TTa

ew heights
rading ead TTr prre

b
A
p
m
T
tr
O
u
A

ments est eyond the minimum require
gate gre money is held in se All client
page should the market mo ositive slip
be will there ensures market execution
p per 10p always is stake minimum he
instrume rade a wide range of financial
and thr s, start at 0.8 pip ads Our spre
erfect services tha nty of time to p le s p
innova s has been providing rade ActivT

activtrades c
. FSA gulators, the d by our re tablishe
d pro enjoying enhance ed accounts,
avour. ove in your f
can even benef and you uotes, -q no re
to 400 up e leverag offer point, and we
and commo FX, indices ents, including
yo platforms and MT5 MT4 rough the
eds. et our clients ne at me
ars, over 11 ye online FX trading for tive

couk
tection
fit from
Our . 0:1
ities. od
can ou
, giving

W
regulat and authorised is C PL
understan fully you that ensure
are not suited to all investors
ING: All financial p RISK WARN

We invite you to visit us online and disco
ity Author Services Financial the by ted
independ seek and involved, risks the nd
and you can lose substantially more t
products traded on margin carry a highd
Est. 2001

activtrades.c more at www. over
434413. number registration FSA y,
rades ActivT necessary. if advice dent
than your initial investment. Please
ital. They degree of risk to your cap
Forex | Spread Betting |

co.uk
CFDs
PAUL TUCKER
ODDS: 1/3
LORD BURNS
ODDS: 7/13
LORD TURNER
ODDS: 7/1
SIR JOHN VICKERS
ODDS: 7/1
SHARON BOWLES
UNRATED
ROYAL Mail yesterday fuelled
government hopes of delivering
the firm into private sector hands
next year after posting a jump in
profits on the back of the boom
in online shopping.
The group, which is 100 per cent
owned by the taxpayer, posted
operating profits of 144m for the
six months ending 23 September
this year versus 12m for the
previous year.
The turnaround was led by a
surge in profits at its UK Parcels,
International and Letters busi-
ness, which has seen a huge pick-
up in demand from online
retailers like Amazon and Asos to
deliver their goods to customers.
Profits in the business leapt to
99m compared to a 41m loss a
year earlier, driven by a two per
cent rise in revenues from letters
and 13 per cent revenue rise from
parcels.
This was despite a nine per cent
decline in letter volumes. The
group said stamp price rises in April
had helped offset the decline in tra-
ditional letter volumes.
The company is being fuelled by
the boom in e-
c o mme r c e
but we are
a l s o
f u e l l i n g
the boom
in e-com-
merce, its
chief exec
Moya
PLANS to extend parental leave
and grant flexible working rights
to all employees was yesterday
received cautiously by business
groups, who warned that many
companies would struggle with
the extra administrative burden.
Deputy Prime Minister Nick
Clegg said new legislation, which
could be introduced as early as
2015, will allow both parents to
share up to 12 months off work in
total after the birth of a child. In
addition, every worker will have
the right to demand flexible shift
patterns.
The Liberal Democrat leader
hopes this will help bring more
mothers back into the economy
and destigmatise unconventional
working patterns.
Simon Walker, director general of
the Institute of Directors, warned
that flexible working is not suit-
able for all employees or every busi-
ness. Extending the right to
request does not change this, it
only creates more unnecessary
form-filing and wasted time. This
move runs counter to the govern-
ments drive to reduce the burden
of regulation on business.
The CBIs chief policy director
Katja Hall agreed flexible working
helps to retain talent but said
firms must be able to make deci-
sions on a case-by-case basis.
Dr Adam Marshall, director of
policy at the British Chambers of
Commerce, raised concerns that
small firms may struggle to cope:
The governments current propos-
als risk causing unnec-
essary friction
between parents
and employers,
and raise unreal-
istic expecta-
tions about the
level of flexibility
most businesses
will be able to
accommodate.
The gov-
e r n -
me nt s
p l a n s
will also
Business groups say flexible
work not right for all firms
BY MICHAEL BOW
LONDON listed bank note
printer De La Rue yesterday
issued a profit warning for the
current financial year due to a
delay in orders which has
stalled production.
The 199 year old company,
listed on FTSE 250, said results
for the current year would be
similar to last years results.
It said: A number of
significant orders which had
been expected and planned for
De La Rue expects earnings
to be flat after orders stall
BY MICHAEL BOW
production in the second half of
the current financial year have
continued to be delayed. It will
now be too late for these orders
to benefit the current financial
year.
The bank said performance in
the first half of the financial year
had been in line with
expectations.
Banknote print volumes were
up four per cent to nearly 3bn
notes. Its order book for the year
was 248m the same value as at
the start of the financial year.
THE COMPANY that maintains
Londons fleet of fire engines called
in KPMG as administrators yesterday.
Premier FireServe, formerly a
subsidiary of AssetCo, has faced
mounting losses, and sold the fleet
earlier this year.
The London Fire Brigade
appointed services company
Babcock International to look after
its fleet after what it called a
deterioration of the services
provided by Premier FireServe.
KPMG called to
fire engine firm
BY JAMES TITCOMB
THE FORUM: Page29

16
NEWS
cityam.com
MORNING UPDATE
Sign up to
our 10:30am
newsletter at
cityam.com
generate major uncertainty for
employers, as they will represent
the seventh change to parental
leave in a decade, he added.
Caroline Carter, head of employ-
ment at law firm Ashurst, warned
that the obligation for firms to
reasonably consider requests for
flexible working from all employ-
ees not just mothers and carers
could create legal risks problems
for firms.
One of the key difficulties for
employers will be how to prioritise
multiple requests from different
employees without damaging
employee relations and giving rise
to discrimination claims, she
explained. Under the new propos-
als employers who prioritise the
requests of one group (e.g. women)
over another (e.g. single men)
could be on the receiving end of a
more diverse range of dis-
crimination claims.
Minister Michael Fallon
welcomed the results
Nick Clegg wants to
help get a million
women back to work
Royal Mail deliver the
goods with profit leap
Greene said.
The group is due to be privatised
after politicians voted last year to
raise private capital in the busi-
ness to help modernise its technol-
ogy.
The decision to privatise the
firm lies with the Shareholder
Executive, which sits inside the
Department for Business,
Innovation and Skills.
All options are said be on the
table, which could include a float
or acquisition from a listed compa-
ny later next year.
BIS minister Michael Fallon said
yesterday: The structure and tim-
ing remain open, but government
is committed to doing that to
ensure the ongoing viability of the
company.
BY JAMES WATERSON
WEALTH manager Savoy
Investment Management was
slapped with a 412,000 fine by
regulators yesterday slashing
earnings at its FTSE-listed parent
company Ashcourt Rowan.
The firm was handed the fine by
the Financial Services Authority
for offering the wrong invest-
ments to nearly a quarter of its
clients, despite former manage-
ment knowing about the breach-
es for 22 months and doing
nothing.
Its parent company, Aim-listed
Ashcourt Rowan, yesterday said
the failings were a legacy issue
and would pay a 590,000 fine
early, cutting the fine imposed by
30 per cent.
The firm is also paying 1.5m in
costs to fund a programme aimed
at tackling compliance issues,
contributing to 2m of total
exceptional costs.
Chief executive Jonathan Polin,
who took charge in September
2011 and identified the problem,
warned that more wealth man-
agers would face similar fines.
Savoy is the first firm to be
penalised for this but it is, in my
view, highly likely that others will
follow, Polin said. It is under-
stood around six key figures at
Savoy no longer work at the firm.
Ashcourt said the fine had con-
tributed to its Ebitda loss of
400,000 for the six months end-
ing 30 September and predicted it
Savoy breach back to
haunt Ashcourt Rowan
BY MICHAEL BOW
HARRY WINSTON SNAPS UP BHP DIAMOND MINE
BHP Billiton has agreed to
sell its Canadian EKATI
diamond operation to
Harry Winston for $500m
(315m), as the luxury
jeweller bets on rising
prices that could extend
the life of Canadas oldest
diamond mine. Miner
BHP which has been
narrowing its portfolio to
focus on larger, long-life
assets announced the
sale almost a year after it
first said it planned to pull
out of diamonds and
would sell assets including
its 80 per cent stake in
EKATI, the cornerstone of
its diamond business.
Harry Winston said in a
statement that it would
fund the cash deal with
existing resources and
debt, including a $400m
term loan and a $100m
revolving credit facility.
Ashcourt Rowan PLC
156.0
156.5
157.0
157.5
158.0
p
155.50
13Nov
THE FORUM: Page 28

17
NEWS
cityam.com
CITYAMCAREERS.com
Challenger banks want tough
capital rules for bigger rivals
CAPITAL requirements are too
tough on challenger banks but
not strong enough for established
institutions, two such challenger
banks told MPs and peers
yesterday despite fears that
raising capital ratios further will
hit lending to the real economy.
Virgin Money and Metro Bank
claimed the current setup gives
an unfair advantage to existing
banking giants while stopping
new firms taking market share.
Over time, the capital ratio
should reduce as risk reduces
with longevity, it needs to be
proportionate, Metro Banks
chief executive Craig Donaldson
told the Parliamentary
Commission into Banking
Standards.
But instead our capital ratio is
significantly higher than 20 per
cent, at least three times higher
BY TIM WALLACE
than most major high street
banks, which carries significant
costs and could be seen as anti-
competitive.
And Virgin Moneys Jayne-Anne
Gadhia added their larger rivals
should be compelled to hold more
capital to level the playing field.
However, that call may not be
taken up economists have
warned that the capital hikes
already imposed on larger banks
are damaging the economic
recovery by holding back lending
to households and businesses.
The pair also argued that while
the process to set up a new bank is
arduous, they do not want it made
any easier for potential future
competitors to enter the market
despite regulators and consumer
groups hopes that more can be
done to boost competition.
And they objected to the
current payments systems setup,
as they have to go through larger
banks to access the basic
infrastructure they need to
operate as a financial services
firm.
Donaldson claimed he often
encountered problems with the
faster payments system despite
there being no problem with the
system at the core, or his
operations, suggesting the large
bank he uses as an intermediary is
at fault.
He claimed the system needs a
shake up to stop small banks from
losing out to these problems.
Across the world payments
systems operate as a utility which
banks link into, he said.
That creates a level playing
field so banks can more easily
differentiate their service to
compete. Here, we have to rely on
the biggest banks offerings and
are forced to go to the lowest
common denominator.
would have posted a profit without
the FSA fine.
Despite the problems, analysts and
markets were upbeat about the firms
prospects. Canaccord Genuity analyst
Michael OBrien said the firm was
going through a rehabilitation and
was now a less speculative buy.
THE HEAD of Microsofts Windows
division has left the company, just
weeks after releasing the latest ver-
sion of the computing software, the
firm said yesterday.
Steven Sinofsky, who had been at
Microsoft since 1989 and was previ-
ously tipped as a possible replace-
ment for chief executive Steve
Ballmer, decided to step
down, staff were told via
email on Monday.
The shock departure, com-
ing just two weeks after
Sinofsky unveiled Microsofts
Windows 8 software,
appears to have come
due to conflicts with
Ballmer.
Microsoft said the
move was mutual as
it shakes up its
management struc-
ture. It is looking to
improve relations
between separate
Windows chief
Sinofsky exits
in shock move
BY JAMES TITCOMB
parts of its business, such as Office and
the hardware division, as the company
puts its weight behind its new
Windows 8 software and Surface
tablet. Sinofsky will be replaced by
Microsoft veteran Julie Larson-Green.
The move was met with dismay by
Wall Street yesterday, sending shares
in the company down 2.8 per cent as
the market opened.
This is shocking news, said
Brendan Barnicle, an analyst at invest-
ment bank Pacific Crest. Like a lot of
people, I thought Sinofsky was in line
to potentially be Ballmers successor.
Sinofskys departure came as the
company squared up to Google in a
New York court yesterday over
the use of patents owned by
Googles Motorola. The land-
mark case, determining how
much Microsoft owes Google,
will be a key indicator of the
value of Motorolas patents.
Ashley MacKenzie set up Base79 four years ago. The firm will now expand across Europe
18
NEWS
cityam.com
Spread betting and CFD trading can result in losses greater than your initial deposit.
*1 point spread available during market hours on daily funded trades & daily
future spread bets and CFDs (excluding futures).
Trade today at
www.cityindex.co.uk/theglobe
ACROSS THE GLOBE
POINT
SPREAD
*
WALL ST | FTSE 100 | FRANCE 40
GERMANY 30 | AUSTRALIA 200
Media tycoon invests in online
firm run by ex-Sun bosss son
HOLLYWOOD mogul Peter Chernin
has ploughed 7.5m into a British
digital media business run by the
son of the former editor of The Sun,
Kelvin MacKenzie.
Ashley MacKenzies Base79 runs
more than 500 YouTube channels,
generating advertising revenue for
content providers including the
BBC and Ministry of Sound.
Chernin spent 13 years as
president and chief operating
officer of Rupert Murdochs News
Corporation which owns the
BY JAMES TITCOMB
Sun before setting up his own
media investment group in 2009.
His Chernin Group gained a
$100m (63m) investment from
Qatar Holdings last week.
A source close to the deal told
City A.M. that the investment, set
to be announced today, will give
Chernin a 20 per cent stake
in Base79. This would
value the company at
37.5m. The firm,
which has offices in
London, New York
and Sydney, says it
will use the money
to expand across Europe.
Kelvin MacKenzie is a large
stockholder in the company
and acts as chairman.
Base79 has established
itself as one of the clear
leaders in online video, an
exciting space that we
believe is positioned to
grow faster than any
other area of media,
Chernin said.
Steven Sinofsky had been
at Microsoft since 1989
Peter Chernin spent 13
years as News Corp COO
REGIONAL newspaper publisher
Johnston Press saw shares fall
eight per cent yesterday as it said
that market conditions in the
third quarter of the year had been
worse than expected.
However, the company said it
was seeing some positive signs of
a slowing in the rate of revenue
decline in November. It said it
predicted circulation to grow year-
on-year in the final quarter of
2012, and that a cost-saving plan
had gone better than expected.
The company, which publishes
around 250 newspapers, said
revenues had fallen 11.4 per cent
in the third quarter, while
advertising sales fell 14 per cent.
Johnston Press
hit by ad sales
BY JAMES TITCOMB
TELECOMS operator TalkTalk said
yesterday it expected to reverse a
decline in revenue growth in this
financial year as it expands its
product range and adds more
customers onto its own network.
Although the company said first-
half revenue slipped two per cent to
828m and its broadband customer
base fell slightly in the second
quarter to 4m, it gained customers
on its more profitable fully
unbundled network which the
company runs itself rather than
using BT equipment.
The company has recently
launched a pay-TV offering using
the new YouView box.
Shares rose almost 10 per cent.
TalkTalk gains
despite falls
TO the grand, if a little belated,
opening party for real estate tycoon
Gerald Ronsons Heron Tower
restaurant Sushi Samba last night.
An eclectic mix of City and fash-
ion guests mingled on the 38th and
39th floors of the Heron building,
sampling the restaurants Japanese,
Brazilian and Peruvian
dishes, as well as food
drafted in from sister
v e nue
Duck
&
Models mingle
with moguls at
Ronson party
Waffle on the 40th floor.
Heron International chief execu-
tive Gerald Ronson was there along
with Sushi Samba founder Shimon
Bokovza.
But it was really a family affair,
with the whole Ronson clan (daugh-
ters and grandchildren) in atten-
dance. Geralds nephew Mark even
took over entertainment duties
from Pixie Geldofs band Violet,
with a late-night DJ set.
Perhaps it was DJ Ronson who
lured the fashion crowd designer
Matthew Williamson and actress
Jaime Winstone, both of whom The
Capitalist spotted looking far too cool
for school.
City A.M. competition winner Christopher Wilson from the University of Westminster
(left) and ING Commercial Banking chief executive Gerald Wilson (right)
Left to right: Gerald Ronson,
Heron International chief
executive, and Shimon Bokovza,
founder of Sushi Samba
MANY congratulations to City
A.M. reader Christopher Wilson
from the University of
Westminster, who won our
competition to mark the start of
ING Commercial Bankings
Discerning Eye exhibition.
To celebrate INGs link with
arts charity The Discerning Eye,
ING teamed up with City A.M. to
offer readers the chance to win
up to 1,000-worth of art.
At the exhibition preview last
night Wilson chose a piece called
Neil Innes Goes To Rio, by Harry
Pye to take home as his prize.
Ive never bought art before but
I felt like now was the time to
start, and thanks to this
competition I can get the ball
rolling, he said.
The exhibition will open to the
public tomorrow and runs until
Sunday 25 November at the Mall
Galleries in London SW1.
Admission is free.
20
cityam.com
cityam.com/the-capitalist
THECAPITALIST
Eurogeddon (noun, informal)
yesterday made it into the
shortlist of the Oxford Dictionaries UK
Word of the Year 2012. It is described
as the potential financial collapse of
the European Union countries that have
adopted the euro, envisaged as having
catastrophic implications for the
regions economic stability. As much
as The Capitalist enjoys seeing City
lingo making in into everyday lexicon
alongside Jubilympics and mummy
porn the entry of omnishambles
(noun, informal) clearly wins on
versatility. Defined as a situation that
has been comprehensively
mismanaged, characterised by a string
of blunders and miscalculations,
surely the two ought to be entered
jointly as synonyms.
There was a time when Labour
was in power that one could
hardly move at a Roland Rudd
November party without bumping into
a government minister. Now that
Labour is in opposition, and one would
have thought pretty keen to convince
the business community that it is to be
trusted, theres barely a soul in sight at
the annual bash of the Citys best-
connected PR firm. No Ed Balls, no
David or Ed Miliband, nor even Chuka
Umanna, the man they say might be
the one to charm the business world.
Maybe Rudds not the man they want to
align themselves with, or, more likely,
Labour still isnt really trying very hard
to attract the business vote.
EDITED BY CALLY SQUIRES
Got A Story? Email
thecapitalist@cityam.com
City A.M. winner Chris casts a
discerning eye over exhibition
Obama vote share
18-29 65+ Male Female White Latino African
American
Bigger role
for govt
Smaller role
for govt
Abortionshould
belegal
Abortionshould
beillegal
2010healthcare
lawshouldnot
berepealed
2010healthcare
lawshould
berepealed
30
40
50
0
10
20
60
70
80
90
100 %
IN BRIEF
Vacancies bounce back in October
nThe UK labour market could
continue to recover from recession in
October, due to rebounding vacancies,
according to data from ICAP out
yesterday. Vacancies grew 7.6 per cent
between September and October, the
broker said, compared to a 5.2 per
cent drop into September but
vacancies are still 1.1 per cent lower
than at the same point last year. The
biggest growth in vacancies was in the
public sector.
Brazilians keep up retail growth
nRetail sales in Brazil rose for the
fourth consecutive month in
September, official data revealed
yesterday, giving hopeful signs of
modest recovery in South Americas
biggest economy. Volumes of sales
were up 0.3 per cent between August
and September, the data from state
statistics agency IBGE showed,
following a 0.2 per cent rise into
August and putting sales 8.4 per
cent above a year before.
Producer price rises slow down
nThe output prices faced by UK
manufacturers rose more slowly in
October, data revealed yesterday,
while input prices rose marginally
after last months fall. Output prices
increased just 0.1 per cent between
September and October, down from
the 0.5 per cent growth between
August and September. Input prices
increased by the same percentage, but
this was a turnaround after last
months one per cent fall.
A PROMINENT business group this
morning called for a radical Autumn
Statement from chancellor George
Osborne, asking for more money and
support from the government.
The government should re-allocate
3.8bn spending from welfare meas-
ures towards supporting house-
builders, growing firms, and business
investment the British Chambers of
Commerce (BCC) said yesterday.
The chancellors Autumn
Statement must include tough deci-
sions to prioritise growth, without
adverse effects on the governments
deficit reduction programme,
demanded BCC boss John Longworth.
Our message to the chancellor is
clear: business will lead Britains eco-
nomic recovery, but needs targeted
support and a confidence boost from
government.
Ministers must be bold and take
some unpopular decisions, including
a shift of resources from welfare
spending towards crucial growth
Lobby calls for
more state aid
to businesses
BY BEN SOUTHWOOD
measures, he claimed.
The proposals suggested include an
100m growth voucher scheme,
which would hand out 5,000 to busi-
nesses with clear growth plans, in
order to help them get access finance,
increase employment and negotiate
the planning system.
The BCC also wants the government
to spend 100m on unblocking
developments stalled due to the load
being placed on rickety infrastructure.
It asked the government to intro-
duce a new 1bn use-it-or-lose-it capi-
tal allowance for business investment,
while encouraging capital to flow into
infrastructural investment by guaran-
teeing investor returns.
And the government should add
100,000 to house-building targets, in
order to provide necessary supply and
stimulate employment in the con-
struction sector, the BCC reckons.
To fund all of this the lobby group
suggests policies including means-test-
ing winter fuel allowances, letting
inflation eat into benefits, or reform-
ing child benefit.
Official data shows house prices
slid into decline in September
HOUSE PRICES started to slide
going into September, ending a six-
month run of unbroken expansion,
official data revealed yesterday.
The UKs average house price
slipped 0.2 per cent between
August and September, the data
from the Office for National
Statistics showed, as even Londons
housing market came under
pressure.
London house prices dived some
1.2 per cent in just a month, but
this fall was not enough to
outweigh rapid yearly expansion
which stood at 5.2 per cent, down
from the 6.3 per cent seen in
BY BEN SOUTHWOOD
August.
The UK market overall also
showed expansion in the year to
September, at a rate of 1.7 per cent
down from Augusts 1.9 per cent,
but still in the black.
This official data confirmed the
picture given in earlier unofficial
releases, indicating returned
weakness in the UK housing
market from September.
And Howard Archer at IHS
Global Insight said that economic
pressures could lead to sustained
weakness in the market. The
modest drop in house prices in
Septemberties in with our view
that there are still significant
downside risks to the house price
outlook and they could well drift a
little lower over the winter
months, Archer said.
Although surveyors have hinted
at a pick-up in housing market
activity, it is still very low
compared to long-term norms and
a significant, sustainable
turnaround in house prices still
looks some way off, he added.
Many statistical releases for
October and beyond from
mortgage lenders, surveyors and
estate agents support Archers view
that the market seems stuck in a
slowdown. But many analysts hope
the governments Funding for
Lending scheme will perk the
market up.
BANKS should have to pay taxes or
fees until they are no longer too big
to fail, a top policymaker said
yesterday, despite complaints that
new regulations on banks are
already hitting lending and growth.
Michael Cohrs, an external
member of the Bank of Englands
Financial Policy Committee (FPC)
wants to use this money both to
reduce the implicit subsidy given to
banks, as they gain from investors
confidence that the state will
Policymaker calls for tax on
banks for being too big to fail
BY TIM WALLACE
protect them should anything go
wrong, and to build an insurance
fund to pay for bailouts.
The regulatory bodies should
consider penalties or taxes on the
largest banks to create insurance
funds which will be used when
resolving one of the exceptionally
large financial companies and to
create an economic incentive for
the firms to down-size, he said.
Cohrs also warned regulators
may not be able to stop banks
collapsing, but must just have to
learn to try and deal with the fall-
out when it does happen.
21
NEWS
cityam.com
Michael Cohrs warned there may be nothing regulators can do to stop banks collapsing
WHAT can the corporate world learn
from Obamas victory? I see two big les-
sons: first is the data-driven campaign
that Obama ran, which can be replicat-
ed by brand owners. The second is that
attitudes and behaviours are much
more important than demographics
when targeting potential voters/con-
sumers.
These two lessons are intertwined. It
is the use of the increasing amounts of
data available, not least from online
panel research that allows us to under-
stand how and when voters change
their opinion, that allows the sort of
micro-targeting the Obama campaign
used. It also demonstrates how we can
move beyond the broad brush demo-
graphic profiling of the past to accu-
rate attitudinal targeting.
The Obama campaign employed
mathematical PhDs to analyse masses
of database and polling data, testing
assumptions and making detailed
campaign plans based on what they
learned. The campaigns fundraising
hit $1bn, turnout models meant
Obamas team understood how to get
out the vote, and their ad buying was
targeted and precise all due to data.
Yes, the election was relatively close,
but that is actually the point; for polit-
ical campaigners and brand managers
the return on investment from using
data to increase your market share by
three per cent is huge.
Looking at the chart, attitudes are
better determinants than the demo-
graphics. Take a white male over 65
who believes in a bigger role for gov-
ernment; in predicting likely vote the
one attitude trumps the three demo-
graphics. Similarly when brands target
consumers it is not the fact that they
are 18-30 that matters most, it is that
they hold the attitudes and behaviours
that the brand associates with 18-30yr
olds. In the past the demographic
approach worked because with the
limited data available it is the best
proxy for attitudes. Now we have
access to greater and more networked
data we can be more precise with our
understanding and targeting. It is the
brands that grasp that who will be the
big winners of the future. Stephan
Shakespeare is the chief executive of Yougov
BRAND
INDEX
STEPHAN SHAKESPEARE
What brands can learn from Obamas data-based win
NEW lenders rushing to provide
funding to the commercial
property market has helped fill
the void left by the collapse of
traditional bank finance, new
research claimed today.
Property specialists DTZ said the
global net debt funding gap has
shrunk by 17 per cent to $117bn
(74bn) over the past six months as
new debt providers such as
insurers and pension funds step in
to replace reluctant banks.
The UK in particular has seen a
55 per cent reduction in its net
debt funding gap over the period.
This is well ahead of Europe as a
whole, which saw a 20 per cent
decline to $86bn compared with
$107bn in May.
New property lenders move to
fill void left by reluctant banks
BY KASMIRA JEFFORD
A weaker economic outlook and
growing pressure from regulators
on banks to step up their
deleveraging has led to a more
than doubling in Europes gross
debt funding gap to a gross
$190bn as banks struggle to
refinance the legacy debt burden.
DTZ said while insurers are
providing the most funding, it
expects increased activity from
debt funds and the launch of more
corporate bonds
Hammerson, in September,
raised 500m via the issue of a
seven-year note with a coupon of
only 2.75 per cent.
Other recent deals include
insurer Legal & Generals maiden
121m loan in May to British
student accommodation developer
Unite.
PLATINUM miner Lonmin has
warned that it will be in a highly
vulnerable position if its sharehold-
ers do not agree to the $817m
(514m) rights issue to shore up its
balance sheet in the wake of industri-
al action at Marikana.
Last week, Lonmin rejected several
proposals from its largest sharehold-
er Xstrata, which holds 25 per cent of
the miner. Xstrata, which is in the
final throes of a merger with com-
modities giant Glencore, wrote to
the Lonmin board to say it would
underwrite a $1bn rights issue, but
on the condition that it would
replace Lonmin management with
that of Xstrata, which Lonmin
rebuffed.
Lonmin stressed yesterday that
without the rights issue, it could
breach its banking covenants next
March, which would make itself vul-
nerable to another Xstrata proposal.
As a result, it said it is imperative
Lonmin urges
support for its
rights issue
BY CATHY ADAMS
that Xstrata shareholders vote in
favour of the rights issue at the com-
panys AGM on 19 November, so the
rights issue can be completed before
31 December, it said.
As of 31 October, the groups net
debt stood at around $550m and this
is forecast to rise further in the next
few months as it ramps up produc-
tion back to normal levels.
The strikes, which took place at
South African mine Marikana, helped
drag Lonmin to a full-year pre-tax loss
of $698m.
IN BRIEF
Nanotech boosts Ox Instruments
n Industry technology firm Oxford
Instruments yesterday reported
adjusted pre-tax profit of 23.1m over
the six months to September, up 23.5
per cent from the previous year.
Revenue was up 7.4 per cent to
170.8m over the period, driven by a
continued increase in global demand
for nanotechnology tools. In this
division which represents 47 per cent
of Oxford Instruments revenue
profits grew by 42 per cent. Meanwhile,
in its industrial products sector, which
represents 36 per cent of group
revenue, profits grew by 15 per cent,
while the service sector division
reported a 16 per cent jump in profits.
Shares closed up 1.67 per cent
yesterday at 1,279p.
Salamander plugs Thai well
n Asia-focused Salamander Energy
yesterday confirmed it had plugged
and abandoned a well offshore the Gulf
of Thailand, as it was deemed a sub-
commercial discovery. The oil and gas
exploration firm said a sand-rich
section of the NW-1 well had led to a
leakage, and Salamander said the well
was not commercially viable. James
Menzies, chief executive of
Salamander, said yesterday that the
result was disappointing. In an
update last month, Salamander said
that this years daily production target
remained in line with previous
guidance at between 10,500-11,500
barrels of oil equivalent each day. Its
shares sank yesterday to close down
2.34 per cent at 187.5p.
Revenue jumps at Lonrho
n Revenue at African conglomerate
Lonrho jumped 14.4 per cent to 43.6m
in the third quarter, up from 38m over
the same period last year. Export
demand from Europe was weaker over
the period, but was offset by stronger
volumes to the US, ASEAN and Chinese
markets. The agribusiness division
contributed 65 per cent of the groups
revenue over the third quarter, with
sales coming in at 28.5m over the
period. Meanwhile, Lonrho said that
African carrier FastJet, in which it holds
a 65.8 per cent stake, is working
towards the launch of the first branded
FastJet fleet at the end of November,
with Tanzania as the initial hub.
Passenger numbers have jumped 31 per
cent to almost 171,000 over the quarter.
In total 45 people died during violent strikes at Lonmins Marikana mine in South Africa
HOUSEBUILDER Persimmon
yesterday warned that the housing
market continues to be
challenging with mortgage
availability the key constraint, but
it was optimistic of future growth.
In a third quarter update, the
group said weekly sales rates were
around four per cent higher on
the previous year, down slightly
from the five per cent reported in
its half year results at the end of
August.
Visitor levels to its sites have
been roughly six per cent ahead of
last year from the start of the
autumn season and cancellation
rates continue to run at
historically low levels of around 20
per cent, the company said.
Persimmon positive on future
growth despite tough market
BY KASMIRA JEFFORD
It added that the cost of
mortgages had eased slightly as
lenders access the governments
Funding for Lending Scheme and
take-up of the governments
NewBuy scheme was gradually
improving as a result.
To date we have supported over
450 customers to purchase a home
with a NewBuy mortgage,
Persimmon said.
Prices have been stable during
the period and the company
expects sales prices to increase by
around five per cent to 172,000
for the full year compared with
163,999 last year.
The FTSE 250 company
reiterated that it expects to return
to underlying operating margins
in the range of 15 per cent to 17
per cent in the medium term.
22
NEWS
cityam.com
Lonmin PLC
440
450
430
460
470
480
490
500
p
484.20
13Nov
BUSINESS processing outsourcing
firm Capita said yesterday it had ben-
efited from an uptick in outsourcing
activity from local governments, as it
said it saw a buoyant public sector
this year.
The group, which runs contracts
ranging from civil service training
schemes to disability assessments,
said there was a good flow of oppor-
tunities from both public and pri-
vate markets, although it was the
public sector, with significant activi-
ty across local and central govern-
ments, that will provide it with
momentum into 2013.
It has benefited from increased
activity from the Ministry of Justice
and Ministry of Defence, but also
across the emergency services and
health markets in particular.
In the private sector, Capita said it
had seen a high level of demand for
customer management services and
for back office support, notably from
the retail, utilities, telecoms and
Uptick in public
sector activity
boosts Capita
BY CATHY ADAMS
financial services sectors.
So far this year, the outsourcing
company has netted 33 major sales
contracts worth 1.7bn, with the bid
pipeline standing at 4bn. Major proj-
ects so far this year worth more than
50m include those with West Sussex
County Council Support Services and
North Tyneside Council, Capita said
yesterday.
Capita chief executive Paul Pindar
said that thanks to the major contract
wins, the firm is on track to deliver
organic growth of three per cent for
2012, and six per cent in 2013.
Capita PLC
710
720
730
740
750
p
722.00
13Nov
MIKE ALLEN
PANMURE GORDON
The third quarter
trading state-
ment from Capita con-
rms it is trading in line
with expectations. The
pipeline of opportunities
going into 2013 looks
busy, albeit this will be
primarily driven by the
public sector in our view.
We maintain our forecasts and target price of
620p on the back of these results, but we re-
iterate our sell recommendation on
the shares.
HENRY CARVER
PEEL HUNT
Trading is in line
with expecta-
tions, with three per cent
organic growth anticipat-
ed for the full year and
further progression likely
in 2013. The sales
environment remains
buoyant in both the
public and private
sectors. Capitas competitive position remains as
strong as ever and the shares are trading on
multiples that do not adequately reect
its defensive characteristics.
CAROLINE DE LA SOUJEOLE
SEYMOUR PIERCE
One of our wor-
ries about Capita
is over the sustainability
of its margins. There
were no comments with
regards to margins aside
from the statement that
the company expects to
achieve continued
strong performance.
Growth is coming from both the public and pri-
vate sector, with a buoyant public sector, with
signicant activity across local and cen-
tral government.
ANALYST VIEWS
IS CAPITAS TRADING STATEMENT AS POSITIVE AS FIRST
THOUGHT?
Interviews by Cathy Adams
BUILDING materials group CRH
yesterday warned that weak
European markets and the impact
of Hurricane Sandy on its
operations led it to trim its full-year
earnings forecast for 2012.
The superstorm, which hit the
East Coast of the US several weeks
ago, has caused significant
disruption to the materials
operations in the area, while
ongoing weakness in major
European markets which saw
sales in the first half of the year fall
CRH trims earnings forecast
and plans 450m in cost cuts
BY CATHY ADAMS five per cent would also
contribute to lower earnings.
Earnings before interest, tax,
depreciation and amortisation are
expected to come in at 1.6bn
(1.28bn), down from 1.65bn in
2011.
The Dublin-based firm added that
it would further squeeze costs out
of the business, identifying 450m
worth of savings over the next three
years.
Meanwhile, like-for-like group
sales declined by three per cent over
the quarter and by one per cent for
the nine months to September.
PRE-TAX profits at struggling
Hibu fell by 90 per cent in the six
months to 30 September, the
group said yesterday, just a day
after it pushed back the deadline
for a debt deal with its creditors.
Pre-tax profit plummeted by
80m to 150m, on group
revenues down 15 per cent to
660m.
Digital revenue a key focus of
the company since it rebranded
from Yell in May grew from 30
per cent to 33 per cent of total
group revenue, and digital
services grew by 38 per cent to
bring in 82m.
The firms statement also said
there had been no material
change to the trading outlook for
the current financial year since
September, when it lowered profit
expectations. Shares have fallen
93 per cent over the last year.
Pre-tax profits
slump at Hibu
BP and AAR
declare peace
BP and former partner AAR said
yesterday they have agreed to settle
their differences over Russian joint
venture TNK-BP.
It is understood that AAR, run by
four Russian billionaires, and BP
have settled all disputes, including
arbitration, in exchange for what is
thought to be a $325m (205m)
payoff by the British oil major. Both
sides agreed last month to exit joint
venture TNK-BP, agreeing separately
to sell their 50 per cent stakes to
Rosneft in a $55bn takeover.
BP last month sold its stake in
TNK-BP in a deal worth $27bn that
will see the firm take an almost 20
per cent stake in Rosneft.
Yesterdays deal means that BP is
now free to explore further
opportunities in Russia and the
Ukraine. Both companies said they
will work constructively with one
another and Rosneft.
BY CATHY ADAMS
23
NEWS
cityam.com
THE RELEASE last month of the
James Bond film Skyfall has helped
cinema chain Cineworld bounce
back from a tough summer season
when the Olympics drew moviegoers
away from the big screen.
The group yesterday posted a 1.4
per cent fall in revenues in the 19
weeks to 4 November while cinema
admissions dropped by 4.1 per cent,
offsetting a four per cent rise in
ticket prices in the period.
It was a bit of a double-edged
sword because the distributors
dont put films out against big
events, chief executive Stephen
Wiener said.
Whilst we had a couple of good
films like Batman and Ted and both
of those did well, there werent the
supplementary titles to support the
larger ones, he added.
The group anticipates a strong
close to the year, with the launch of
the final Twilight film and The
Hobbit expected to lift box office
and retail sales. Skyfall has already
reaped 70m at cinemas in the UK
in the first two opening weeks.
Advertising revenues were flat
year on year, a marked rebound from
the 12 per cent fall posted in the first
half. Wiener said its recent move to
digital projectors would pave the
way for higher advertising income.
James Bond to
the rescue at
Cineworld
BY KASMIRA JEFFORD
WILLIAM Hill, Britains largest book-
maker, has been given until next
month to submit a formal bid for
online gaming company Sportingbet
following a 530m takeover approach.
The Takeover Panel, which oversees
mergers and acquisitions, has extend-
ed the deadline for an offer until 5pm
on 4 December to allow discussions to
continue between Sportingbet,
William Hill and joint bidder GVC
Holdings, Sportingbet said.
The original deadline was due to
expire yesterday, but an extension was
anticipated given the complexity of
three-party talks.
William Hill and smaller partner
GVC Holdings won provisional back-
ing from the Sportingbet board last
month for a cash and share approach
valuing Sportingbet at 61.1p per
share.
The main prize for William Hill is
Sportingbets operations in Australia.
William Hill makes most of its rev-
enues in Britain but is expanding
William Hill
gets extra time
for Sportingbet
BY HARRY BANKS
overseas and bought three businesses
in the US state of Nevada earlier this
year. William Hill is also interested in
taking on Sportingbets business in
Spain, a country with a keen interest
in sport and where regulations were
clarified earlier this year.
The complication for William Hill is
to try to separate out the Spanish busi-
ness from operations in other parts of
Europe where the regulations are less
clear-cut.
Partner GVC is planning to acquire
those operations in grey markets
where regulatory risks are higher.
HOW OFTEN DO YOU GO TO THE
CINEMA? Interviews by Kasmira Jefford
I probably go every other week to the cinema
and I am going to see Argo on Friday. We try to
go to smaller cinemas like the Ritzy in Brixton or the Curzon
in Mayfair rather than the Odeon or Cineworld cinemas.
These views are those of the individuals above andnot necessarily those of their company
LIZ RATCLIFFE
ACCENTURE
I have been to the cinema twice in the last four

months, most recently to see Skyfall. I dont
go more often because I do not have time but when I do
the price doesnt put me off.
DANNY JONES
MOTT MACDONALD
I have been to the cinema around 25 times
over the past year but at the moment there is
very little other than Skyfall that I want to see. I also have
an issue with the extortionate drink and popcorn prices.
NICK COSTER
FRANKHAM CONSULTANCY
Workspace plans Tower Bridge

building as pre-tax profits soar
WORKSPACE yesterday posted better-
than-expected half year results,
driven by strong tenant demand for
its trendy London office space and
its focus on asset management.
The company, which provides
offices to some 4,000 businesses
such as Moonpig, as well as the
Metropolitan Police, became a stock
market darling after posting stellar
annual results in May and has since
seen shares rally by 40 per cent.
Net asset value increased by 3.6
per cent to 319p a share in the six
months to 30 September, driven by
2.2 per cent rise in the value of its
BY KASMIRA JEFFORD
portfolio to 718m. Pre-tax profits
rose 46 per cent to 24.6m.
Like-for-like occupancy rose from
87.7 per cent to 88.8 per cent while
its rent roll jumped by 3.1 per cent.
The London-focused company has
been carrying out a major
refurbishment programme to boost
the value of its properties and
currently has 14 projects underway
or being designed, with two
completed in the period. It launched
a retail bond six weeks ago and
raised 57m, which has helped fund
these plans. Workspace also has 12
redevelopment projects where it is
applying for planning permission
and selling on land to residential
housebuilders in return for new
office space.
In October, it entered into an
agreement with Taylor Wimpey to
build a mixed-use development at its
two-acre Grand Union Centre site in
Ladbroke Grove, which will have 135
apartments and a 60,000 square feet
business centre.
Chief executive Jamie Hopkins
said he expects to be granted
planning permission to build 800
flats near Tower Bridge in January
next year. Overall, it is seeking
planning consent for 2,325
residential units, which analysts at
Peel Hunt estimate could give the
group a 15m valuation uplift.
CITYVIEWS
The launch of the new James Bond film Skyfall boosted Cineworlds box office takings
Sportingbet PLC
51.25
51.50
51.75
52.00
52.25
50.50
50.75
51.00
p
50.75
13Nov
25
NEWS
cityam.com
US network specialist Cisco
Systems last night reported higher
quarterly revenue and earnings
that beat average analyst
estimates due to cost cuts and the
company's broad product range.
First-quarter net income,
excluding items, rose 10.6 per cent
to $2.6bn, or 48 cents per share,
compared with analysts average
estimate of 46 cents a share as
compiled by Thomson Reuters.
Revenue rose six per cent from
the year-ago quarter to $11.9bn,
compared with a Street view of
$11.77bn.
Ciscos shares rose 6.7 per cent
to $17.98 in after-hours trading.
Analysts said the results were
Cisco earnings exceed analysts
expectations after cutting costs
solid and better than anticipated.
Its largely due to a product
mix a larger shift to routing
and cost cutting. At first blush
these are good numbers in a bad
macro (environment), said
Mizuho Securities analyst Joanna
Makris.
This is better than expected.
We have been thinking they
would squeak by on the top line,
she added.
Brian Marshall, an analyst at ISI
group, said the results looked
solid.
We delivered record results
this quarter demonstrating our
vision and strategy are working,
said John Chambers, head of
Cisco.
US CORPORATE RESULTS
ROUND UP
Home Depot raises
forecasts for sales
HOME Depot yesterday raised
its full-year outlook as the
retailer benefited from a recent
uptick in the US housing market
and analysts expect a sales
boost from Hurricane Sandy in
the current quarter.
The worlds biggest home
improvement chain posted
quarterly net earnings up 1.4
per cent to $947m (596m), on
sales that rose a bigger-than-
forecast five per cent to
$18.13bn.
Our third-quarter results were
better than we expected and
reflected, in part, what we
believe is the start of the path
toward the healing of the
housing market, said Home
Depot chief executive Frank
Blake in a statement yesterday.
Xerox lifts buyback
but lowers outlook
XEROX yesterday cut its fourth-
quarter profit target as it
restructures in the face of
economic weakness, but said it
will raise its dividend 35 per
cent, sending its shares higher.
The company, historically known
for printers and copiers, said it
was taking a restructuring
charge of around $100m
(62.9m), at the high end of its
previously announced target
range, in its services business,
which handles anything from toll
systems to the US government
Medicare programme.
But the firm has boosted its
share buyback scheme by $1bn.
The company expects 2013
revenue to be flat to up two per
cent, roughly in line with
analysts' expectations.
Saks says Sandy has
hit US retail trading
DEPARTMENT store operator
Saks expects sales at stores open
at least a year to be flat during
the holiday quarter because of a
slow start to November due to
Hurricane Sandy.
Saks said yesterday that the
storm affected stores that make
up more than half of its sales.
Quarterly sales rose three per
cent to $713.2m (449m), below
the $726.1m analysts were
expecting. Sales at stores open
at least year rose 3.3 per cent,
below the company's own
forecasts.
During the third quarter, Saks
sales and profits were hurt by
what it called a modest spike
in promotions, which lowered its
gross profit margin by 0.3 points
to 43.9 per cent of sales.
Fashion firm Michael
Kors trebles its profit
NET income more than tripled at
fashion company Michael Kors
during the second quarter, the
firm said yesterday as it raised
its full-year profit view.
Strong demand in the US and
Europe pushed revenues up 74.4
per cent to $532.9m (335.9m),
while sales at stores open more
than a year rose 45.2 per cent.
Despite a weakening economy
in Europe, Kors managed to
double its sales there to $57m.
Net income soared from $31.6m
a year earlier to $97.8m.
Michael Kors, whose founder is a
judge on the long-running
television fashion show Project
Runway, said holiday-quarter
sales at its own stores, open a
year, could rise by a mid-20 per
cent.
TK Maxx owner posts
a surge in earnings
TJX, the US owner of retailer TK
Maxx, reported a higher
quarterly profit yesterday and
said it expects same-store sales
during the holiday quarter to
be flat to up two per cent.
The firm also raised its full-year
earnings by a penny per share
to between $2.45 and $2.48.
TJX posted net income of
$461.5m (290.6m) for the
quarter, up from $406.5m a
year earlier, a whisker above
analyst forecasts.
Net sales rose 10.7 per cent to
$6.41bn, while same-store sales
rose seven per cent
accelerating from three per
cent growth a year ago.
The gain was most pronounced
in Europe, where same-store
sales were up 11 per cent.
26
LONDONREPORT
U
S stocks sold off late in the
session yesterday, led by a slide
in Microsoft shares, though
retailers were a notable bright
spot after Home Depot raised its
outlook.
Microsoft was the most actively
traded on Nasdaq, weighing on the
tech-heavy Nasdaq Composite after the
surprising departure of a key execu-
tive. The stock fell 3.2 per cent to
$27.09.
After the closing bell, Cisco Systems
shares rose 6.8 per cent to $18 after it
reported quarterly revenue and earn-
ings that beat analysts estimates.
Home Depot shares hit during the
regular session levels not seen since
April 2000 and the companys raised
outlook suggested a revival in the long-
dormant US housing market. The S&P
retail sector index advanced one per
cent.
Home Depot did say something
about housing, which was perceived as
positive and was behind the earlier
rally, said Richard Sichel, chief invest-
ment officer at Philadelphia Trust Co.
That was tempered by Microsoft, to
some extent, and probably more so by
the fiscal cliff, he said.
The Dow Jones industrial average fell
58.90 points, or 0.46 per cent, to
12,756.18 at the close. The S&P 500
dropped 5.50 points, or 0.40 per cent,
to 1,374.53. The Nasdaq Composite lost
20.37 points, or 0.70 per cent, to
2,883.89.
TJX, which owns the Marshalls and
TK Maxx retail chains, reported results
that beat analysts forecasts and its
shares added 2.7 per cent to $42.06.
Just over 6.2bn shares changed hands
on the New York Stock Exchange, the
Nasdaq and NYSE MKT, below the daily
average for November.
B
RITAINS FTSE 100 share index
closed up yesterday, recovering
from an earlier two-month low in
late trade on renewed hopes that
Spain will ask for a bailout, a move
which is seen as an essential step
towards solving the Eurozone crisis.
Spanish bond yields fell and its main
bourse index rallied on the expecta-
tions that Spain will make the formal
request for help which is needed to start
the European Central Banks sovereign
bond-buying rescue plan. However,
there seemed to be no fresh news
behind the shift in market sentiment,
with traders saying that thin volumes
exaggerated the moves.
There is rumour that Spain is getting
its bailout, said Steve Larkins at
Seymour Pierce. Theyve got to do
something, Europe has got to sort
itself out.
The FTSE 100 finished up 18.98 points,
or 0.3 per cent, at 5,786.25, rebounding
off a two-month intra-day of 5,710.99
points and climbing back above the key
technical support level of the 200-day
moving average around 5,729.19.
Earlier Vodafone had unveiled a
5.9bn writedown on the value of its
business in Spain and Italy and lowered
its full-year outlook. Shares in the
mobile phone operator, the third
biggest company in the FTSE 100, closed
down 2.5 per cent in more than three-
times the 90-day average daily volume.
On the flip side, ITV was the biggest
gainer on the FTSE 100, adding nine per
cent after the broadcaster said its
net advertising revenue for the year
will outperform the wider television
market.
Investor hopes over possible Spain
bailout prop up shares on the FTSE
BESTof theBROKERS
Trifast PLC
p 44
43
42
41
40
39
44.00
13 Nov
TRIFAST
After strong interim results
Shore Capital has
upgraded its forecasts for
the mechanical fasteners
maker, upping earnings
estimates by four per cent
for 2013. It has a buy
rating and 43p target price.
DASHBOARD CITY
NEW YORK
REPORT
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
FTSE
5,950
5,900
5,850
5,800
5,750
5,786.25
13 Nov
Majestic Wine PLC
p 480
478
476
474
472
474.97
13 Nov
MAJESTIC WINE
Ahead of interims on 19
November, Canaccord
Genuity has a buy rating
and 505p target price on
the retailer, but expects a
volatile trading period and
expects a flat performance
for the first half.
Aveva Group PLC
p 2,080
2,060
2,040
2,020
2,000
1,980
1,960
2,001.00
13 Nov
AVEVA GROUP
UBS has downgraded the
software group to sell
from neutral with a
target price of 1810p. The
broker says the current
valuation is demanding,
making any M&A
prospects unlikely.
Alvarez & Marsal
The professional services firm has
announced three appointments.
Dan Murphy joins as a managing
director from Alix Partners. He
has also held roles at Ernst &
Young. Ian Woosey and Lynn
Evison join as senior directors.
Woosey was previously director
of retail consulting at Summit,
and Evison was a partner at Kurt
Salmon.
Stephenson Harwood
Elizabeth Elliott has been appointed partner in the law
firms banking division. She joins from SNR Dentons
restructuring and insolvency group. Elliott is a specialist in
domestic and cross border restructuring and insolvencies.
Reech AiM
The asset management firm has appointed Gary Sher as
finance director and Adam Mincer as head of operations and
technology. Sher joins from East West Resources, and has
also held senior roles at Deutsche Bank. Mincer joins from
GLG Partners, and has also worked at Citigroup, JP Morgan
and HSBC Investment Bank.
Towers Watson
Andrew Curcio has been appointed senior consultant in the
professional services firms executive compensation team.
He was most recently a partner at Kepler Associates, and he
has also worked as head of reward at Aviva Australia.
Hymans Robertson
The pensions and benefits advisory has appointed Jerry
Edmondson as head of communications. He joins from
Jardine Lloyd Thompson, where he was head of benefit
communications.
RBC Capital Markets
Clare Spottiswoode has been appointed non-executive
director of Royal Bank of Canadas European subsidiary. She
was previously director general of Ofgas, the UK gas
regulator. Spottiswoode also served on the Vickers
Commission.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
in association with
in association with
in association with
Retail bump
fails to curb a
fall on Wall St
I
NTERNATIONAL Airlines Group
(IAG), formed in January 2011
through a merger between
British Airways and Iberia, is in
difficulty. Operating losses at
IAG in the first nine months of
2012 were 169M (135m).
Shareholders have a right to feel
disgruntled. They might question
IAGs revenue forecasting methods,
and how realistic their projections
have been. Or they may ask how
much revenue synergy has
actually been achieved. I could go
on.
These problems are specific to
IAG. But similar issues can be
found in many publicly-listed
companies that have merged or
acquired other businesses.
W
HEN we first opened
Metro Banks doors in
2010, the prevailing
response was that we
were a little crazy. How
can you expect to drop into London
and do something nobodys done in
more than 100 years: create a
differentiated new bank model? It
cant be done!
But we knew that the UK banking
market was crying out for something
new, and the overwhelming customer
acceptance by both business and
consumers validated our presupposi-
tions.
Metro Bank is the first UK high
street bank to open in 100 years. Its
inspiration came from my experience
of building Commerce Bank in the US,
which started in 1973 with one office
and expanded into a 500 store, $50bn
(31.5bn) bank. Commerce grew 25
per cent per year compounded for 30
years, and produced a 30-year, 23 per
cent annually compounded share-
holder return. Thats dramatic growth
in a slow growth industry.
Part of our success was treating
cityam.com/forum
Im often asked how
it could be possible to
train the English to
deliver decent service
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.
28
VERNON HILL
Why Metro Bank is flourishing in
the low growth banking business
banking like any other customer serv-
ice industry. Like McDonalds, Apple
and Starbucks, were an American
company that has built its fortunes on
a unique model that was then success-
fully transplanted into the UK. What
Metro Bank also shares in common
with UK-based John Lewis, is the idea
that the customer relationship is
everything. This is dramatically differ-
ent from the traditional British bank
model, which views the customer
solely as a target for more product
sales.
Apple was a 5 per cent market share
player that reinvented the mobile
phone and personal computer indus-
try. With a leader dedicated to bend-
ing the future, Steve Jobs created a
differentiated model, a fanatical cul-
ture and his execution was charac-
terised by precision and focus. In a
similar vein, three expressions make
up the mathematical equation for
Metro Banks success.
First, our unique model. Unlike the
existing London financial industry,
our banks are integrated into the
local community. Metro bankers
know and deal directly with their cus-
tomers local bankers making loans
to people.
The second is culture. I am frequent-
ly asked how it could be possible to
train the English to deliver service.
But I believe that if we hire men and
women with the right attitude, we
can teach the skills necessary in any
industry. We now have more than 500
people working for Metro Bank in the
UK, and its been easy to find people
with both a good attitude and a belief
in our model. Because a good model
makes good people better. Thats what
we did at Commerce Bank for 34 years
and thats whats happening at Metro
Bank now.
Big banks in Britain have developed
into large, impersonal, product sales-
focused institutions where the rela-
tionship between the customer and
the banker has long been lost. Our
model has exploded in popularity, as
banking customers realised how ener-
gising a good banking relationship
could be their bottom line.
Finally, to complete the Metro Bank
mathematics, you must have proper
implementation. To create fans, you
have to build an emotional brand that
you are enthusiastic about. Service,
delivery, design, look, appeal and the
execution of the brand are our central
focal points.
We have learned a few lessons in
developing the Metro Bank model
that could be applied to any business.
No one needs a me too company.
Successful entrepreneurs create dif-
ferentiated, value-added models.
Great companies create business mod-
els that create emotional brands and
turn customers into followers. Great
brands deliver great customer experi-
ences through financial execution,
delivering a culture that is both per-
suasive and reinforcing. Design is a
competitive weapon. And if you elimi-
nate endless rules, you will make the
customer experience enjoyable.
Britain is a great place to build a
growth business. If we can create a
new differentiated growth model in
the non-growth business of banking,
anyone can redefine their industry
and create similar value.
But creating a great business is diffi-
cult. It requires inspiration, motiva-
tion and persistence. Everything that
can go wrong will go wrong, but great
entrepreneurs turn adversity into
opportunity.
Vernon W. Hill II is founder and president
of Metro Bank and the author of Fans Not
Customers: How to Create Growth
Companies in a No Growth World (Profile).
A study by three business school
academics, 20 years ago,
transformed the economic
approach to analysing mergers. A
lot of work had already been done
into the impact of a merger
announcement on share prices,
and on the value to the
shareholders of the target
company. But Julian Franks, Robert
Harris and Sheridan Titman looked
at the long-term impact on the
share price of the company in the
driving seat.
What they found was not good
news. Their results gave rise to a
whole new area of academic
thinking the so-called post-
merger performance puzzle. Most
of the time, the shareholders of
the acquiring company lose out.
Each individual case has its own
specific explanation, but initiating
a merger or acquisition is usually
bad news for your shareholders.
For believers in economic
rationality and efficient markets,
this is an intriguing puzzle. People
are allowed to make mistakes, but
not consistently. For every merger
that underperforms, there should
be one that delivers unexpectedly
large benefits to the shareholders.
And theres been such a large
number of mergers and
acquisitions that executives ought
to be able to learn from the
mistakes. Yet there is persistent
downside for shareholders of the
acquiring company. Occasionally
they gain, but usually they lose.
IAG is just one example of this
phenomenon. To understand why
experienced managers still pursue
mergers and acquisitions, despite
the track record of such activity,
we need to turn less to economics
and more to psychology.
In a speech in June, investor
George Soros borrowed a phrase
from University College London
psychoanalyst David Tuckett. Soros
described Europes boom before
the most recent crisis as a
fantastic object, unreal but
immensely attractive. Executives
may create similarly fantastic
objects when they think of
mergers and acquisitions.
BA remains vital to the British
economy. So we should all hope
that chief executive Willie Walsh
brings his merged airline giant
back to Earth and sorts out the
mess.
Paul Ormerod is an economist at
Volterra Partners, a director of the
think-tank Synthesis and author of
Positive Linking: How Networks Can
Revolutionise the World.
AGAINST
THE GRAIN
PAUL ORMEROD
Psychology is lurking beneath every disappointing corporate merger
MORNING UPDATE
A.M.
29
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
Corporation tax
[Re: How corporation tax myths poison the
wider debate, yesterday]
There is an assumption among many people
that large multinationals exist solely to pay
corporation tax. These companies arent
seen as broadly useful businesses, which
provide services and sources of employment
to millions, but as a means of sourcing
money for the government. Its time that
this faulty assumption is disabused.
Campaigners need to be reminded that
businesses are primarily there to provide
returns to their owners and shareholders.
The payment of tax is a consequence of
businesses being successful at this core
purpose.
DavidPeddy, managingdirector of Surgical
Instrument GroupHoldings
Future of the BBC
[Re: Its time for the BBC to allow its viewers
freedom to choose, Monday]
I fully agree that the license fee should be
replaced by a subscription service. But I
think we should also go further. We should
restructure the BBC as a consumer
cooperative, and make its subscribers its
owners.
GeorgeMulberry
The breadth of the BBCs director generals
responsibilities are absurd. Its right that the
job be split. But this would then open up a
larger issue. How many excellent journalists
would be willing or able to give up their
careers to become full-time bureaucrats,
overseeing a huge organisation?
JohnPage
T
HE Bank of England sets
interest rates to keep
inflation low to preserve the
value of your money, reads
the puff on the front page of
the Banks website.
But its done a poor job recently.
The 2.7 per cent annual rise in the
consumer prices index (CPI),
announced yesterday, is better than
last Septembers 5.2 per cent. But
inflation soon whittles down peo-
ples savings. You would need 2
today to buy what 1 would buy in
1992.
The Bank has overshot its 2 per
cent annual inflation target for 35
months in a row. Had it met its tar-
get, the cumulative rise in prices
since the credit crunch would have
been 10.4 per cent. Thats high
enough. But the real figure is nearly
twice that at 18.6 per cent.
As usual, special factors were
trotted out for explanation. The first
was a 19.1 per cent rise in education
costs, now that the university fees
cap has risen from 3,000 to 9,000.
Second came higher food prices
after bad harvests in the US. Third
was dearer energy bills (though the
worst is yet to come.)
But these are only part of the
answer. The annual rise in the retail
prices index (RPI) which includes
housing costs was even worse than
CPI, at 3.2 per cent. And the core rate
of inflation, which strips out food
and energy bills, rose from 2.1 per
cent to 2.6 per cent. Some projec-
tions suggest CPI could rise to 3.5 per
cent by mid-2013. Inflation seems a
lot more stubborn than the Bank
predicted.
With wages lagging behind prices,
household budgets are shrinking in
real terms every year. Consumers
will be squeezed even more in 2013.
So where is the debt-busting, book-
balancing, recovery-fuelling new
TOP TWEETS
The credibility of the Bank of Englands 2 per
cent inflation forecasts is lacking. Inflation is
always forecast at 2 per cent, but never is.
@asentance
Inflation has been falling the whole of this
year. Most of this particular rise is due to
tuition fees. Its a spike.
@Frances_Coppola
Surprised by the inflation rise? You wouldnt
be if you realised how much the pound has
fallen over the last five years.
@DouglasCarswell
More work flexibility would be good for
employees, but very difficult for small
businesses to administer.
@CMorleyJones
Would Nick Cleggs new proposals on flexible
working be practical for a career in the City?
YES
Its not a divine right for parents to work flexibly. But flexible
working should be an option afforded to everyone. And lets be clear
reduced hours need not mean reduced commitment. All flexible
working arrangements must start with a business conversation that
balances the needs of the business, clients and teams with personal
desires. This is the key to getting it right for employer and employee.
The business case for change is also compelling. Flexible working
attracts and retains the best and brightest. Emppployees, clients and
customers all demand it, and it can lead to competitive advantages.
The City is no stranger to the benefits of flexible working and
championed its success during the Olympics. I know that there are
many more of you out there who, like me, already work flexibly. Its
the future for British business.
Lynn Rattigan is deputy chief operating officer at Ernst & Young.
She works flexibly.
Lynn Rattigan
NO
Thomas de Freitas
As a concept, flexible working is no more than a quick fix to create
better work life balance, both inside and outside the City. Yet the
idea is misconceived. Im not talking about maternity or paternity
leave, or part-time work on a case-by-case basis. Rather, if it
becomes normal for half a workforce to be absent, the remaining half
will be forced to pick up the slack, doubling their workload simply to
keep the machine running. Flexibility for some breeds inflexibility for
others. Further, absent employees are often kept out the loop.
Research by Kings College London shows that 50 per cent of flexi-
time female solicitors believe that they are not seen to be serious
about their careers. My worry is that a fully flexible workforce will
leave the majority feeling less satisfied in their careers and more
insecure in their jobs.
Thomas de Freitas is managing director of Communicate
Recruitment Solutions.
RAPIDresponses
Failure to control
inflation damages
Britains recovery
growth going to come from?
Certainly not from many business-
es theyre also being hurt by infla-
tion. The Office for National
Statistics reported that the prices of
goods leaving factory gates has
remained stuck, while input costs
rose by 0.1 per cent. With consumers
not spending and costs rising, it is
unsurprising that firms are sitting
on cash rather than investing.
These inflation figures might
explain why the Monetary Policy
Committee decided against another
round of quantitative easing last
week. Sterling jumped on the news,
of course, as every dose of the Banks
easing dilutes the value of the
pound. But it was the opposite for
shares, as monetary expansion
boosts asset prices though little of
it actually gets through to the real
economy.
As for the government, inflation
allows it to repay its debts more easi-
ly, using devalued currency. But
then it is largely the Bank of
Englands willingness to bend mone-
tary rules that has kept down bor-
rowing costs. Less Bank expansion
means less room for George
Osborne to manoeuvre.
At some point, we have to take the
pain. We had a huge cheap-money,
public-borrowing binge and now we
are trying to put off the hangover
with a hair of the dog. Inflation is a
killer. We need to lock it away, and
fast.
Eamonn Butler is director of the Adam
Smith Institute.
EAMONN BUTLER
Printed by Iliffe Print Cambridge, Winship Road, Milton, Cambridge CB24 6PP
Distribution helpline
If you have any comments about the
distribution of City A.M.
please ring 0203 201 8955, or email
distribution@cityam.com
Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor Marc Sidwell
News Editor Elizabeth Fournier | Business Features Editor Tom Welsh | Lifestyle Editor Steve Dinneen | Sports Editor Frank Dalleres
Creative Director Gavin Billenness
Commercial Sales Director Jeremy Slattery | Commercial Director Harry Owen | Head of Distribution Nick Owen
4th Floor, 33 Queen Street,
London, EC4R 1BR
Tel: 020 3201 8900
Fax: 020 7248 2711
Email: news@cityam.com
Editorial Statement: This newspaper adheres to the systemof self-regulation overseen by the Press Complaints Commission. The PCCtakes complaints about the editorial content of publications under the Editors Code of Practice, a copy of which can be foundat www.pcc.org.uk
I
M STANDING in a hotel car park
outside Lisbon and my head
hurts. Forty different versions of
Vauxhalls new lifestyle city car,
called Adam, are laid out in front of
me and Im not sure I particularly
like the look of any of them. This, I
suspect, is entirely the point
Vauxhalls diminutive new city car
has been designed for trendy City
types to personalise to their hearts
desire. Its no surprise that I
wouldnt have specced one quite
like any of these. But with more
than one million different
combinations possible, Im sure I
could find something I like.
Vauxhall wants to tempt buyers
away from more established char-
acter cars including the Audi A1,
Citroen DS3, Fiat 500 and Mini. To
start with youll need to choose
which of the three different trim
levels you want: Jam is targeted at
fashionistas, Glam for a more
sophisticated look and Slam for
owners who fancy something a bit
racier. The options alone are enough
to throw your head into a spin. Once
youve chosen which trim model
you want, you then choose between
twelve body colours with corny
names including Papa dont
Peach, Purple Fiction, James
Blonde, and Buzz Lightgreen
(yes, seriously, I kid you not).
Then there is a roof colour to
chose, four interior base colours, 15
different seat designs, three printed
headliners a chequered flag pat-
tern, autumn leaves and cloudy
blue sky and 18 interior de cor pan-
els. Then choose from three option
packs, three decal packages and
even opt for interchangeable
coloured clips which snap on to
your wheels, of which there are 20
styles to choose from. You can even
specify a starlight headliner above
you which is inset with 64 separate
little LEDs. And this is just the
beginning. The personalisation
options continue but I am scared of
losing you, dear reader, before one
or both of us loses the will to live.
Whichever way you look at it,
therell be plenty of head-scratching
in Vauxhall dealerships across
London. Can you imagine how long
it will take to actually sell one?
The resulting car is certainly auda-
cious. Not least because launching
such a car is risky. It is divisive even
without mentioning what really is a
quite awful name. From the outside,
the Adam has a look all of its own.
The floating roof is undoubtedly its
best exterior feature but the car also
has wing-shaped daytime running
lights and a scallop-shaped shock
wave around the door handles. The
result is a cheeky little car that looks
stylish on the road. But the real glam-
our is in the interior. The cabin is a
master stroke, with a style that is truly
innovative and the material quality, fit
and finish is extraordinary for a car at
this price. When specced well, the inte-
rior looks great and is roomier than it
has any business being. The boot,
though, is small. Youll not get more
than a weekends worth of luggage for
two in there.
Connectivity is also a key feature
for this car. Instead of installing a
navigation system into the dash,
owners can opt for a satnav app that
they can download to their iPhone
before docking with the car. Its a
clever solution, but in our test cars it
sent us all over the place and was
obviously unfinished, speaking in
indecipherable digibabble.
If only driving it was a little more
fun. Available with a choice of three
petrol engines 1.2-litre 70PS, 1.4-
litre 87PS and 1.4-litre 100PS I had
the chance to drive the 1.4-litre 87PS
with a sportier, firmer chassis
option. You have to work the under-
powered 87PS engine hard and its
not helped by a gearbox that could
really benefit from an extra gear.
Handling though is better, even if
the ride was a bit clunky at times on
Portuguese roads.
Not that it should matter to poten-
tial owners Vauxhall hopes to
attract the kind of trendy people that
spend thousands personalising bicy-
cles that lack performance but look
great. The question is: will those peo-
ple find that the Adam offers sub-
stance as well as style?
Vauxhalls new city car is more of a lifestyle product than a car. But is it a case of style over substance?
30
LIFE&STYLE
cityam.com
MOTORING
CAR TALK
BY RYAN BORROFF
The Caterham Seven Supersport
The Caterham Seven Supersport is getting an even-more race-
focused brother. The two-litre Supersport R boasts a bigger Ford
Duratec engine, a five-speed gearbox and packs 180bhp.
Developed over three years of Caterhams R300 race
championship, the car has hardcore track-bred dynamics, a
bespoke steering wheel, composite race seats and four-point race
harnesses. Price 27,995, fully-built.
BY RYAN BORROFF
THE VERDICT:
DESIGN hhhhi
PERFORMANCE hhiii
PRACTICALITY hhhii
VALUE FOR MONEY hhhii
THE FACTS:
VAUXHALL ADAM
GLAM 1.4 ECOFLEX
PRICE: 13,270
0-62MPH: 12.5 secs
TOP SPEED: 110mph
CO2 G/KM: 119g/km
MPG COMBINED: 55.4mpg
Mercedes-Benz gullwing coupe
Theres a new Mercedes-Benz gullwing coupe on the way. The 6.3-litre
V8 SLS AMG Coup Black Series has been inspired by the SLS AMG GT3
racing version and launches at the Los Angeles motor show later this
month. Performance improvements to the engine power is increased
by 60hp to 631hp transmission, suspension, brakes and aerodynamics
see the car capable of reaching 62mph from standstill in 3.6 seconds
and a top speed of 196mph.
Ferrari F12 Berlinetta
Ferrari's F12 Berlinetta added to its list of accolades last week. Evo
magazine awarded it the Engine of the Year award for its 6.3 litre
V12 engine and German magazine Auto Bild with newspaper Bild Am
Sonntag gave it the Golden Steering Wheel award, the first time a
Ferrari has won the prize. Previously it has won the Auto Bild Design
Award, and The Sunday Times Drivings Best Supercar and Luxury
Car award.
A car youll be able to tell from Adam
The Vauxhall Adam has 1m possible option combinations
31
cityam.com
FASHION BY NAOMI MDUDU
The tux gets the
Acne treatment
A
CNES NOT the only brand
unveiling a big
collaboration this month.
London Fashion week
favourite Michael Van Der Ham
has joined forces with British
cashmere label Brora, on a
twelve-piece collection to make
sure that you can keep warm
but stylish this winter.
I was approached by Brora [to
do a collection] and wanted to
do it instantly, as I knew about
how high quality their product
it is, van der Ham said, and the
partnership is certainly one that
makes sense. The Dutch designer
has slowly introduced more and
more knitwear into his main
line and his penchant for colour
lends itself to the bold palette
that Brora is known for. The
colour palette was really impor-
tant and thats why I used a lot
of vivid shades to off-set the pas-
tels we used, he explained, and
that is particularly apparent on
a multi-coloured long-sleeved
zigzag print top that is already
proving to be a hit.
Van der Ham fans wont be dis-
appointed. The collection infus-
es all of the signatures that hes
known for, so expect collaging
and an interesting mix of differ-
ent delicate fabrics woven
together on each piece.
Working with Michael has been
extremely refreshing, Broras
founder and creative director
Victoria Stapleton said. He has
such a great eye for detail and
his very elegant, feminine touch
resonates through all the pieces
he has designed for our collabo-
ration. He loves a quirky twist
and this unique collection with
Brora certainly brings out his
creative genius.
Prices start from 200 for
knitwear and 60 for accessories.
Michael van der Ham
and Brora join forces
W
HAT SPRINGS to mind
when you think about
Acne? Not formal wear,
right, and why should it?
After all, when the Swedish label
exploded onto the fashion scene just
over a decade ago, it was its achingly
cool and quirky denim wear that
had everybody talking. Fast-forward
to today and the denim wear is still
there but the collections have
become more diverse, offering both
mens and womenswear collections
along with a very successful
furniture line. Now, Jonny
Johansson, the labels founder, has
decided to take that one step further
by launching a capsule eveningwear
collection with leading online
menswear retailer Mr Porter to
ensure that you are prepared for the
party season.
We have worked with ACNE from
the launch of Mr Porter and are
delighted that they have been willing
to further develop our relationship,
the retailers buying director Toby
Bateman explained. This collection
provides everything a man could
need where evening attire is required
and is designed with the most beau-
tiful fabrications and attention to
detail.
The 14-piece capsule collection,
which officially launched yesterday,
features a tight selection of wardrobe
staples that will definitely hold you
in good stead long after the black tie
season is over. When I designed this
collection I wanted for it to all work
separately. I love the fact that each
piece can be taken in isolation and
worn with jeans and a t-shirt,
Johansson explained. The philoso-
phy behind the brand is that, while
every collection forms a concept,
each piece can still be mixed with
other brands to create an individual
style.
As you would expect from the label,
the pieces all come with a modern
twist. Classic styles have been updat-
ed with luxe fabrics like rich-toned
velvets and bespoke jacquards and
the line includes everything from
formal shirting and suiting to acces-
sories like bow ties and shoes.
The Acne tuxedo collection is available
now exclusively at mrporter.com
Right: Robert Konjic modelling pieces
from the collection for Mr Porters Journal
Left: one of the brightly coloured
sweaters from the collection. Right: A
model sporting one of the jumpers with
a skirt from the designers main line.
The cult Scandinavian label has teamed up with Mr Porter
to get you looking very sharp indeed this black tie season
32
TV & GAMES
cityam.com
T
E
R
R
E
S
T
R
I
A
L
BBC1
SKY SPORTS 1
7pmLive Darts 11pmIndia v
England Tour Preview12am
International Football 2amA
League Football 2.30amIndia v
England Tour Preview
3.30am-6amLive Test Cricket
SKY SPORTS 2
6.30pmRingside 7.30pmLive
International Football 10pmTrans
World Sport 11pmA League of
Their Own 12amRingside 1am
Darts 5am-6amLive European
Tour Golf
SKY SPORTS 3
7pmInside the PGA Tour 7.30pm
Live International Football 10pm
Poker 12amCage Fighter
12.30amMax Power 1.30am
Poker 3.30am-4.30amAngling
BRITISH EUROSPORT
6.35pmEquestrian 8.35pm
Riders Club 8.40pmEuropean
Tour Golf 9.05pmGolf Club
9.10pmAlexias Selection 9.15pm
Sailing 9.45pmYacht Club
9.50pmWednesday Selection
10pmMotoGP 11.30pm-12.20am
World Cup World Tour
ESPN
7pmLive International Football
9.30pmInternational Football
11.15pmESPN FC Press Pass
11.45pmUFC 154 Countdown
Show12.15amESPN Kicks:
Brasileirao 12.30amLive
International Football 2.30am
Premier League World 3amUFC:
The Ultimate Fighter 5amFIS
Alpine Ski World Cup Report
5.30am-6amESPN Game of the
Week
SKY LIVING
7pmCriminal Minds 8pm
Elementary 9pmChicago Fire
10pmGreys Anatomy 11pm
Bones 12amSun, Sea and A&E
1amCriminal Minds 1.50am
Supernatural 2.40amMedium
3.30amBones 4.20amNothing
to Declare 5.10am-6amPassport
Patrol
BBC THREE
7pmYoung Apprentice 8pm
Gavin & Stacey 9pmUnsafe Sex
in the City 10pmUnzipped
10.45pmFamily Guy 11.30pm
American Dad! 12.15amUnsafe
Sex in the City 1.15amUnzipped
2amGavin & Stacey 3amRussell
Howards Good News
3.30am-4amSome Girls
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmThe Big Bang
Theory 8.30pm2 Broke Girls
9pmThe Big Bang Theory
9.30pmThe Work Experience
10pmThe Inbetweeners
11.05pmRude Tube 12.10am
The Big Bang Theory 1.05amHow
I Met Your Mother 1.35am
Scrubs 2amMisfits 2.55amBalls
of Steel Australia 3.50am90210
4.30amOne Tree Hill
5.15am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmStorage Wars 8.30pm
Storage Wars: Texas 9pm
American Restoration 10pm
Mankind: Story of All of Us 11pm
Storage Wars 11.30pmPawn
Stars 12amAmerican Restoration
1amMankind: Story of All of Us
2amAmerican Pickers 3amAx
Men 4amSwamp People 5am
Pawn Stars 5.30am-6am
American Restoration
DISCOVERY
7pmGold Rush 8pmGold Rush
Aftershow9pmFast n Loud
10pmDevils Ride 11pmWheeler
Dealers 12amFast n Loud 1am
Devils Ride 2amAmerican Guns
3amFast n Loud 3.50amDevils
Ride 4.40amDiscovery Atlas:
South Africa Revealed
5.30am-6amMeerkat Manor
DISCOVERY HOME &
HEALTH
7pmDr Oz 8pmParalysed and
Pregnant 9pmIm Pregnant and
My Husband Wants to Become a
Woman 9.30pmIm Pregnant and
a Little Person 10pmTrauma: Life
in the ER 11pmHelp! Im Turning
into a Giant 12amIm Pregnant
and My Husband Wants to
Become a Woman 12.30amIm
Pregnant and a Little Person 1am
Wanted Down Under 2am
Trauma: Life in the ER 3amHelp!
Im Turning into a Giant 4amA
Baby Story 5am-6amBirth Days
SKY1
8pmThe Glee Project 9pmLast
Resort 10pmFringe 11pmRoss
Kemp: The Invisible Wounded
12amTrollied 12.30amA League
of Their Own 1amNCIS: Los
Angeles 2amGlee. The day of the
regionals arrives. 2.55amRoad
Wars 4.10am-6amStargate SG-1
BBC2 ITV1 CHANNEL4 CHANNEL5
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
6pmBBC News
6.30pmBBC London News
7pmThe One Show: BBC News
8pmDIY SOS: The Big Build
Children in Need Special
9pmBrazil with Michael Palin
10pmBBC News
10.25pmRegional News 10.35pm
The National Lottery Wednesday
Night Draws 10.45pmHave I Got a
Bit More News for You 11.25pm
CHOICE Film 2012: National
Lottery 11.55pmFILMSalvage
2009. 1.15amWeatherview
1.20amSign Zone: See Hear
1.50amSign Zone: Andrew Marrs
History of the World 2.50amRip
Off Food 4.20am-6amBBC News
6pmEggheads
6.30pmStrictly Come Dancing
It Takes Two
7pmCelebrity Antiques Road
Trip: Stefanie Powers and Don
Warrington compete.
8pmMasterChef: The
Professionals
9pmCHOICE The Hour
10pmThe Culture Show
10.30pmNewsnight: Weather
11.20pmGreat Continental
Railway Journeys
12.20amStoryville Knocking
on Heavens Door
1.20amBBC News 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.15pmITV News
6.45pmEmmerdale
7.15pmLive International
Football: Sweden v England
(Kick-off 7.30pm).
9.45pmITV News
10.15pmLondon News
10.20pmInternational
Football Highlights
11.20pmFILMRumor Has It:
Romantic comedy, starring
Jennifer Aniston. 2005.
1.05amJackpot247; ITV News
Headlines 3amFILMColumbo:
The Most Crucial Game 1972.
4.20am-5.30amITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmSuperScrimpers: Winter
Survival Tips
9pmGrand Designs
10pmSecret State
11.05pmRandom Acts
11.10pmGeordies Overboard
12.10amMusic on 4: Abbey
Road Studios: In Session 12.55am
Music on 4: Spotlight: Indie and
Rock 1.10amMusic on 4: The Crush
2.05am90210 2.45amFILMDo
Not Disturb 1965. 4.30amDeal or
No Deal 5.25am-6.10am
Countdown
6pmHome and Away
6.30pm5 News at 6.30
7pmEmergency Bikers: 5
News Update
8pmCHOICE The Removal
Men: 5 News at 9
9pmFILMErin Brockovich:
Fact-based drama, starring
Julia Roberts. 2000.
11.45pmLaw & Order: Special
Victims Unit:
12.40amForensic Files
1.05amSuperCasino 4am
HouseBusters 4.25amHouse
Doctor 4.45amMichaelas Wild
Challenge 5.10amWildlife SOS
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
6 19 3
45
22 12
6 7
8 39
19 30
21 12
24 18
10 9
45
9 21 17
8
29
16
19
29
19
17
4
11
12
33
34
13
19
5
16
17
28
23
11
28
11
ACROSS
1 Sorcery (5)
4 Steal from a
person (3)
6 Abundant (5)
7 Appears (5)
9 Musical efect
produced by
rapid alternation
of tones (7)
11 Ask earnestly (7)
13 Woman skilled in
aiding the delivery
of babies (7)
15 Bluster (7)
16 Caller (5)
17 Stand-in doctor (5)
18 Catch sight of (3)
19 Take part in a row (5)
DOWN
1 Gather or bring
together (6)
2 Hindu social class (5)
3 Distress (5)
4 Make peace, come
to terms (9)
5 Brand name of a
ballpoint pen (4)
8 Deserving of respect
or high regard (9)
10 Fanatical (5)
12 Soft and mild (6)
13 Month of the year (5)
14 Code of beliefs
accepted as
authoritative (5)
15 Formal ofers at
an auction (4)
E
A
E
H
R V
D
S
T

4

4

4
S T A F F C O C O A
H L L E A O L
A S I D E T R A W L
R U G X E T A
P A N N I E R S A Y
V B P L
L E G I D I O T I C
A U L L O V A
K H A K I L I K E N
E V T E A E D
S C A R Y R U N N Y
1 2 7 3 1 2 3 8
3 5 9 8 7 3 8 9
1 8 2 3 1 4 6
9 6 7 4 9 1 7
8 4 9 5 1 6 7
2 3 5 1 2 1 6 5
7 4 2 5 8 9 6
9 3 9 5 8 5 1
5 2 4 3 1 9 8
8 1 2 6 9 8 7 2
7 4 9 8 2 6 3 1
4
4
4
4
4
4
4
4
4
The nine-letter word was
VERMINOUS
T
E
R
R
E
S
T
R
I
A
L
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
FILM2012
BBC1, 11.25PM
Claudia Winkleman and Danny Leigh
review Twilight: Breaking Dawn Part
2, crime-caper remake Gambit, and
the Palme dOr-winning Amour.
THE HOUR
BBC2, 9PM
Return of the newsroom drama. It is
1957 and the shows producer Randall
Brown decides to shake up the team
by bringing back Freddie.
THE REMOVAL MEN
CHANNEL5, 8PM
A Pickfords crew transports the
belongings of a family from Norwich
to the south of France and two pianos
complicates a couples relocation.
TVPICK
ENGLAND wicketkeeper Matt Prior
has backed the tourists to cope if, as
expected, fast-bowler Steven Finn
fails to recover from injury in time
for tomorrows first Test in India.
Finn had been tipped to step up
his recuperation from a thigh strain
by practising in the nets yesterday
but did not bowl, leaving Prior
resigned to his likely unavailability
in Ahmedabad.
Fellow paceman Stuart Broad did
manage six overs off his full run,
however, and Prior believes England
have enough talent in reserve for
Alastair Cooks challenging baptism
as permanent Test captain.
The one thing you would say is, if
there was a realistic chance of Finny
playing, then he probably would
have had a long bowl today, said
Prior. Its a setback. Im sure coach
and captain would want to be able to
choose from every player thats out
here. But we have a lot of strength
and depth. Its one thing thats made
our squad so strong over the last cou-
ple of years. If Finnys not available,
We can take on
India without
Finn, says Prior
theres another guy that can step in
and do as good a job thats the way
we look at it.
Yorkshires Tim Bresnan is
favourite to join James Anderson and
Broad in Englands pace attack if Finn
fails to make a dramatic recovery,
while Durhams Graham Onions is
the other candidate.
All-rounder Samit Patel is thought
likely to help Graeme Swann with
spin bowling duties, although former
India captain Rahul Dravid believes
England selectors should pick Monty
Panesar instead.
Bits and pieces cricketers havent
had much of an impact in India,
Dravid said, referring to Patel. Monty
has bowled well in India in the past
and can keep one end tight so I would
like him to play. Personally I would
definitely play the two frontline spin-
ners. Indians are extremely good play-
ers of spin and they are not going to
get out to part-time bowlers.
Patel has impressed with bat and
ball during Englands three warm-up
fixtures, pushing him ahead of left-
armer Panesar in the pecking order
for the four-match series.
CRICKET
COMMENT
ANDY LLOYD
Finn is suffering from a thigh problem and is expected to be replaced by Tim Bresnan
AROUND 264,000 London 2012
Olympics tickets remained unsold
this summer, despite the huge
public demand to attend events.
Customers had difficulty accessing
tickets due to the official website
crashing, while sections of empty
corporate seats at key events angered
the public.
Football had the most seats unsold
with 213,000, while 2,407 seats for
athletics and thousands of day
passes for the Olympic Park also
went spare. In addition, 55,000
Paralympics tickets went unsold.
However 2.5m Olympic and 2.1m
Paralympic tickets were sold for 20
or less. The figures, published in a
letter to the London Assembly will be
used to question London 2012 chief
Lord Deighton and chairman Lord
Coe today.
[London 2012] set out its
commitments and aims for the
Olympic and Paralympic ticketing
programme which were to raise over
500m towards the cost of staging
the Games, fill our venues, and offer
affordable and accessible tickets,
wrote Deighton. I am delighted to
confirm that we have met all these
commitments and aims.
WEST Indies batsman Chris Gayle
made history yesterday by
becoming the first player to smash
a six off the first ball of a Test
match.
The big-hitting left-hander
blasted Bangladeshs Sohad Gazi
over long-on in the first Test,
although the debutant had the last
laugh when he had Gayle caught
for 24. West Indies closed on 361-4
after centuries from Shivnarine
Chanderpaul and Kieran Powell.
Gayles landmark stroke came in
the 2,051st Test match in history.
Ruthless Gayle
hits historic six
BY FRANK DALLERES
BY FRANK DALLERES
BY ALEX SHARP
SPORT
33
cityam.com
IN BRIEF
RFU play down 6m loss
n RUGBY UNION: Governing body the
RFU has reported losses of 6.3m for
2011-12 after the World Cup meant
fewer lucrative games at Twickenham.
The RFU said the loss was anticipated
and balanced by profits accrued over a
four-year cycle.
Romanov snubs Hearts fans bid
n FOOTBALL: A fans group hoping to
buy Scottish Premier League club
Hearts has had an initial offer rejected
by owner Vladimir Romanov. The
Hearts Foundation, comprised of
supporters and local businessmen,
acted following the clubs admission
last week it needed donations to pay a
tax bill of around 500,000.
Results
LE;<I$)(=I@<E;CPD8K:?
aq|aa4 02I ...........(I) 2 N Ire|aa4 02I ............ (0) 0
w|c||+m 45
Afa|e (per) Att. 8,040
K?<=8:LGN@K?9L;N<@J<I=@IJK
IFLE;I<GC8P
Barrew .................. (0) I 0a|se|ey ..................... (0) 0
Harter 9O Att. I,JI2
Bra4Ier4 .................(I) J Nerthamptea .............(I) J
At||rsar J5 Demart+r+c 4J (per)
we||s 9O (per) P|+tt 9O, l+rme+ O9
VcHa| ZO Att. 2,95I
AET. Scare +fter 9O m|rs ZZ. Br+far W|r 4Z ar per+|t|es.
N||tea Keyaes 0eas (J) 0ambr|4qe 0|ty......... (0) I
w||||+ms Z, 4 (per) T|ea|+| oO
OS|e+ 4J
BaW|tc| 45
A|| 5, O||c|ser Att. 4,I2
Naaeatea ............... (0) 0 |atea ...........................(I) 2
Att. I,59 Rere|| ZZ, Z (per)
Rech4a|e ............... (0) 0 Nerecambe ................(I) I
Att. I,I5 VcDar+| 44
S|eaqh ................... (0) I NaasI|e|4 ...................(I) I
BaWerH++se oo waa/|e] 45 (a)
Att. I,59J
AET. Scare +fter 9O m|rs . V+rsf|e| W|r 4 ar per+|t|es.
wa|sa|| ................... (0) 2 ||ace|a 0|ty ............... (0) J
T+arr] 8 PaWer 5O
P+tersar ZO O||1er OZ, 8
Att. I,I2
AET. Scare +fter 9O m|rs . .
K?<N@CC@8D?@CCJ:FKK@J?:LGK?@I;
IFLE;I<GC8P
Berw|ck ..................(I) 2 Steaheasema|r ..........(I) 5
Oarr|e (per) Sm|t| J9, 8o
l+1er] oo Oemme|| 48
Att. 402 Ke+r 5Z, 5o
Nertea .................. (0) J A|b|ea ........................ (0) 0
H+r|e 5
T|ser 5J, J Att. I4
Ra|th ...................... (2) 4 A|r4r|e 0t4 ................ (2) J
Sperce 5 w+tt J
w+||er Z (per) D| O|+cama 45 (per)
O Arersar 55, H||| 99 Bac|+r+r 8o
AET. Scare +fter 9O m|rs JJ. Att. 9J5
K?<@IE$9ILJ:FKK@J?=FFK98CCC<8>L<
:?8DG@FEJ?@GK?@I;;@M@J@FE
0aeea's Park ..........(I) I ast St|r||aq ...............(I) 2
Ra|ertsar J5 Oreer|||| 45
Att. JI4 Oa|rr J (per)
K?<=8:LGN@K?9L;N<@J<I=@IJK
IFLE;
Bra|atree Tewa .... (0) 0 Traamere ....................(I) J
T|ampsar Z4
Att. I,50J Stac|tar 5J, PaWer 9O
9CL<JHL8I<9<KJFLK?
davaat aa4 w ....... (2) 4 0erchester ................ (0) 0
R+mse] (per)
P+|mer Zo, T+ert o4, H+rr|s o Att. 52
:I@:B<K
=@IJKK<JKD8K:?
8ljkiXc`XmJflk_ 8]i`ZX
;Xp,f],
9I@J98E<1 8ljkiXc`X [i\nn`k_ Jflk_ 8]i`ZX
JFLK?8=I@:81=ìjk@eeè^j +,' (K+|||s 4, Am|+ O4,
Peterser o4)
8LJKI8C@81=ìjk@eeè^j
(O1err||t 484)
VO|+r|e rat aat..................................................................................... Z59
VHasse] c Sa| | Var|e| ................................................................... OO
Vw+e rat aat..........................................................................................9
l|4 W r|ZJ................................................................................... J8
Tat+| (5 W|ts., ec J8 a1ers) ............................................... 5o5
=Xcc1 J, JO, 4O, Z99, 5Z.
9fncè^1 Ste]r JOJZ9, P|||+rer JOJOJO, Var|e|
JoZJ, K|e|r1e|t Z9O, K+|||s ZJJOO, Sm|t|
9OJoO, Am|+ ZO9O, Peterser JOZOO.
JFLK? 8=I@:81 J\Zfe[ @eej
A Peterser c w+e | P+tt|rsar..............................................................5
O Sm|t| c Oa|re] | P+tt|rsar............................................................... ZJ
H Am|+ c Hasse] | S||e...................................................................... J8
J K+|||s c O|+r|e | l]ar........................................................................... 49
A e V||||ers rat aat..................................................................................Z9
J Raa|p| ||Wl]ar...................................................................................
V P|||+rer rat aat......................................................................................
BZ W4 r|4......................................................................................... O
Tat+| (5 W|ts., o8 a1ers)...........................................................oo
=Xcc1 o, 55, OZ, Z9, o5.
9fncè^1 H||fer|+as 5JZoO, P+tt|rsar 9J58Z,
S||e 4Jo, l]ar J54Z, Oa|re] 4JJO.
Ldgì\j1 A R+af & B BaWer.
9Xe^cX[\j_ mN\jk @e[`\j
;Xp(f],
;?8B81 N\jk @e[`\j _Xm\ jZfi\[ *-( ]fi ]fli n`Zb\kj X^Xèjk 9Xe^cX[\j_
N<JK @E;@<J1 =ìjk @eej
O O+]|e c V+|maa||+| | O+/| ............................................................ Z4
K PaWe|| | O+/|..........................................................................................
D Br+1a c Hass+|r | O+/|.........................................................................4
VS+mae|s c O+/| | S|+|++t Hass+|r.............................................o
S O|+rerp+a| rat aat ..........................................................................ZJ
D R+m|r rat aat....................................................................................... 5Z
l| W r|.........................................................................................5
Tat+| (4 W|ts., 9O a1ers) .......................................................... Jo
=Xcc1 JZ, 4, Oo, ZJ.
9fncè^1 O+/| JZ598J, Hass+|r 4OZ, Hass+|r 9O
54O, V+|maa||+| OZ9O, A| H+s+r 9Zo9O, ls|+m
8Z4O, Hass+|r O8O.
Ldgì\j1 R l|||rWart| & B Oterfar.
KF;8PJ;@8IP
(.45pm ar|ess st+te)
|I|A wer|4 0ap arepeaa 0aa||Iy|aq 0reap |
Nart|err lre|+r 1 A/er|+|j+r .....................................................................
0reap d
Varterera 1 S+r V+r|ra (5pm)...............................................................
Iateraat|eaa| Natches
latem|aar 1 Scat|+r (.5)......................................................................
Rep af lre|+r 1 Oreece ..................................................................................
SWeer 1 Er|+r (.JO)................................................................................
|A 0ap ||rst Reaa4
O|aacester 1 le]tar Or|ert............................................................................
0a4er-2I |r|ea4|y Natch
Parta+| 1 Scat|+r (opm)............................................................................
|A Trephy Jr4 ra4 0aa||Iy|aq rep|ay
war|sap 1 O|ester |O.....................................................................................
Oar|] 1 we+|stare .........................................................................................
I
EXPECT the England camp has
mixed feelings going into this
long-awaited series in India,
because while the tour has gone
reasonably well so far, their recent
Test record does not offer much cause
for optimism.
On the positive side, Englands
players will have enjoyed the rest
that preceded this trip, while the
tour itself is a nice one its not too
long, they get a break from the cold
weather and they are back in time
for Christmas.
They can be fairly satisfied with
the touch they have shown since
arriving in India, where the batsmen
have all got in the runs and most of
the bowlers have had sufficient
practice.
But it cannot be ignored that this
year Andy Flowers side have lost to
Pakistan and South Africa, drawn
with Sri Lanka and beaten a West
Indies of only moderate quality. In
terms of Test match form, they cant
be feeling on top of the world.
Its vital, then, that England get
off to a good start and that the
bowlers make early inroads into a
talented Indian batting line-up. And
that means James Anderson and
Graeme Swann coming to the party.
Historically Indias batsmen are
amazingly strong on their own
pitches. They have some excellent
one-day hitters coming into the Test
fold, while the likes of MS Dhoni
lower down the order speaks
volumes for their strength.
England will hope that perhaps
the hosts come into the series with a
fraction too much confidence, play
some careless shots and allow Swann
and Co to get on top.
SCEPTICISM
Alastair Cook will know they must
dominate matches, whether batting
or bowling first. Whoever wins the
toss will surely bat, so if England get
in they need to be getting first-
innings totals of 350 and 400.
They neednt lose any sleep,
however, over Indian claims that
Ravinchandran Ashwin is planning
to unleash a mystery spin ball with
which to baffle Englands batsmen.
This type of talk rears its head
every so often, but until Ashwin
takes a five-fer in the first Test theyll
treat it with suitable scepticism.
Finally, I think the great Rahul
Dravid may be talking with Indias
best intentions at heart when he
claims England should pick Monty
Panesar as second spinner ahead of
Samit Patel.
In any sport you need people in
form, and Patel will never approach
another Test match with more
momentum than this one. Its an
absolute no-brainer for selectors; if
Patel doesnt play this match then he
never will.
Andy Lloyd is a former England Test
batsman. He has also acted as captain and
chairman of Warwickshire.
Test form no comfort as England face series
Quarter of a million London
2012 tickets were not sold
SWEDEN captain Zlatan Ibrahimovic
has given England added incentive
to win tonights Stockholm friendly,
after depicting Roy Hodgsons men
as having big hearts and always
fighting but lacking the skill
required for international level.
The Paris Saint-Germain forward,
who has already netted nine goals
this season, delivered the slight
while praising England skipper
Steven Gerrard, who is poised to win
his 100th cap.
[Gerrard] is a very good person to
have as a team-mate in your team,
said Ibrahimovic.
He always gives 200 per cent, is a
good fighter and has good skills and
a good touch with the ball also. He
feels more like an international
player rather than a normal English
player. English players have big
hearts, always fighting, very
aggressive, but for me Gerrard feels
more international. He has more
skills than the normal player.
Ibrahimovic will be confident of
an upset against England, having
scored in Swedens sensational
comeback from 4-0 down to draw 4-4
against Germany in their World Cup
qualifier last month.
The 31-year-old has a prolific
international record, scoring 35 in
84 appearances, and played when
England beat Sweden 3-2 at Euro
2012 earlier this year.
Zlatan in barb
at Three Lions
dearth of skill
CAPTAIN Steven Gerrard insists he
still has a few chapters left in his
international career as he prepares
to join a select band to win a century
of England caps tonight against
Sweden.
The Liverpool midfielder has not
given up on lifting silverware with
Roy Hodgsons side, although he
admits he considered quitting the
national team earlier this year fol-
lowing Euro 2012.
Gerrard will be 34 when the 2014
World Cup kicks off in Brazil, but he
believes emerging talents such as
Jack Wilshere, Raheem Sterling and
Wilfried Zaha can help him fulfil his
dream of England glory.
My England journey has been full
of ups and downs, probably the same
as a few other England players as
well. I still feel there are a few chap-
ters to write. I dont feel as if Im com-
ing to the end, he said.
After the [Euro 2012] tournament,
at 32, it crosses your mind: do you
stop playing and give up? But Im not
a quitter, Im a fighter, and if you stay
in there and keep fighting, success
can happen. The young players are
one of the main reasons I want to
stick around. You talk about Wilshere,
Zaha, Sterling, and I can go on and
name many more. These young play-
ers, and how good they are, they can
help me achieve that success.
Liverpool forward Sterling, Everton
midfielder Leon Osman and
Tottenham centre-back Steven
Caulker are set to make their England
debuts after Hodgson named the
starting XI last night.
Gerrard has shaken off a knee prob-
lem to lead the side in the Stockholm
friendly, where he is set to become
only the sixth Englishman to win 100
caps, but he is adamant he is not
chasing David Beckhams outfield
record of 115. It is not really impor-
tant to me if I beat Davids record or
not, Gerrard added. My main focus
is to get this team to qualify for the
next big tournament.
ENGLAND manager Roy Hogdson
has warned dual nationality young-
sters Wilfried Zaha and Raheem
Sterling not to take their call-ups for
granted, insisting they should be
thankful for the opportunity.
Zaha and Sterling, born in the
Ivory Coast and Jamaica respectively,
are in the squad to play Sweden
tonight as Hodgson looks to bring
youth into his future plans.
However the players could still opt
to change allegiance to their country
of birth even if they feature in the
game tonight because it is not a com-
petitive fixture.
If any players prefer to play for a
national team other than England
they are welcome to do so, said
Hodgson. If our national team is not
strong enough motivation for them
then they are not the type of player
we want anyway.
Perhaps I naively assume that
when you give a player who has
played for the Under-19s and Under-
21s that, they would want to play for
the national team.
Id expect them to cycle there. Id
expect theyd be thankful for the
opportunity.
Hodgson dismissed claims that
Zaha had been fast-tracked into the
squad largely to make sure he plays
for England in the future.
He has been selected on the basis
of the past couple of years, he said.
When the opportunity arose with a
gap in the squad it was an obvious
chance to bring him in.
34
SPORT
cityam.com/sport
BY TOM SHEPHERD
FORMER Liverpool midfielder
Dietmar Hamann has warned
against the overhyping of young
players, following the attention
surrounding 20-year-old Wilfried
Zahas first England call-up.
Hamann, who won 59 Germany
caps, aired concerns that being
shoved into the spotlight too early
could hinder the young Crystal
Palace forward.
He wrote on Twitter: I dont like
all the hype thats already circling
round the kid Zaha yes he is
exceptionally talented but thats all
it is so far. Lessons seem not to have
been learnt from Walcott a few
years ago
Arsenal winger Theo Walcott has
struggled to live up to expectations
since his shock inclusion in the
2006 World Cup squad, aged 16.
Hamann also questioned the
motives behind including Zaha and
Liverpools Raheem Sterling, who
also qualify to play for Ivory Coast
and Jamaica respectively.
The ex-Manchester City player
added: If Sterling and Zaha
wanted to play for other nations
then let them I dont think England
should lower themselves [to] calling
players up to stop them playing
international football elsewhere.
Youngsters
overhyped,
says Hamann
BY TOM SHEPHERD
BY FRANK DALLERES
@cityam_sport
Hodgsons warning
to Zaha and Sterling
BY ALEX SHARP
POLICE have shelved their
investigation into Chelsea claims
referee Mark Clattenburg racially
abused Nigerian midfielder John
Obi Mikel after no victim came
forward.
The alleged incident, in last
months Premier League match
with Manchester United, is still
being probed by the Football
Association, which is expected to
deliver its findings this week.
Inquiries were made and no
victims have come forward, the
Metropolitan Police said in a
statement.
The matter will remain as a
recorded incident. Without a
victim and/or any evidence that
any offence has been committed,
the matter cannot currently be
investigated.
If the situation changes and a
victim and/or evidence to support
an allegation of a crime comes to
police attention, then further
inquiries will, if appropriate, be
made.
Clattenburg has missed two
weekends of fixtures and is set to
miss a third since the controversy
erupted hours after the heated
fixture, in which he sent off two
Chelsea players, on 28 October.
Chelsea complained to the
Premier Leagues match delegate
and, following consultation with
lawyers, the FA, although police
became involved only after contact
from the Society of Black Lawyers.
Refs race row case
dropped by police
BY FRANK DALLERES
Englandglory
dream spurs
Gerrard to go
beyond 100
STARTING XI
Joe Hart (Manchester City)
Glen Johnson (Liverpool)
Steven Caulker (Tottenham)
Gary Cahill (Chelsea)
Leighton Baines (Everton)
Leon Osman (Everton)
Steven Gerrard (Liverpool)
Ashley Young (Manchester United)
Tom Cleverley (Manchester United)
Raheem Sterling (Liverpool)
Danny Welbeck (Manchester United)
35
FLOOD PRETTY DRY ON IOANE TAUNTS
FLY-HALF Toby Flood has laughed off taunts by Australias Digby Ioane that Englands
wingers are nothing but pretty boys. The England wingers are pretty, really good
looking. I just cant wait to go against them," said Ioane, who will line up against Chris
Ashton on Saturday. Flood saw the funny side, saying: "I can see where Digby is coming
from. He [Ashton] is from Wigan. It's the homeland of all supermodels."
THREE-TIME Champion Jockey
Frankie Dettori faces a French
horse racing inquiry after
returning a positive test for a
banned substance at a meeting at
Longchamp in September.
A solicitor for Dettori, arguably
the highest profile rider in flat
racing over the last two decades,
said the British-based Italians case
would be heard next week.
On behalf of Frankie Dettori I
can confirm that, as a
consequence of a positive test at
Longchamp on September 16 2012,
he will be the subject of an inquiry
by the Medical Committee of
France Galop next week, said
solicitor Christopher Stewart-
Moore. In compliance with, and
out of respect for, the regulations
of France Galop, he will not be
commenting further until the
France Galop procedures have
been completed.
French racing chiefs have not
revealed any further details of the
41-year-olds positive test, which
came on a day in which he had
four rides.
Dettori, whose 18-year
association with stable Godolphin
ended last month, rode the Marco
Botti-trained Joshua Tree to third
in the Qatar Prix Foy and could
not prevent John Hammonds
Sarah Lynx coming last in the Prix
Vermeille.
He then finished a close second
on Godolphins Farhh in the Prix
de Moulin and third in the Prix
Gladiateur aboard Willing Foe,
from the same owners.
Englands tour to India has gone fairly well,
but their Test record is no cause for optimism
cityam.com
ENGLAND rugby head coach Stuart
Lancaster has offered sympathy to
wing Ugo Monye after leaving him
out of his 23-man squad to play
Australia on Saturday, as Chris
Ashton returns from a suspension.
Monyes omission is the only
change from the squad that defeated
Fiji 54-12 at Twickenham at the week-
end, with Gloucesters Charlie
Sharples retaining his place having
scored two tries in the first autumn
international of the series.
Harlequins star Monye misses out
despite registering a try on his first
England appearance in more than
two years against Fiji.
It is tough on Ugo, who misses
out this time, but Chris has been
excellent in training and Charlie is
rewarded for his performance at the
Monye axed as
Ashton returns
for Aussie date
weekend, said Lancaster, who names
his team tomorrow. We had to make
some tough decisions within the 23
and we are in a good position to be
able to select from a largely fit squad.
Prop Alex Corbisiero and centre
Jonathan Joseph have failed to prove
match fitness and have been sent
back to their clubs, along with Monye
and 10 other players.
England have defeated Australia in
their last two matches and Lancaster
will be hoping Ashton repays his faith
in the winger, who has scored three
tries against them in three Tests.
Meanwhile Australia must respond
to their humiliating 33-6 loss in Paris
on Saturday without flanker David
Pocock, who has been ruled out with
a calf strain. The Wallabies will also
miss lock Kane Douglas, who fea-
tured in the heavy loss to France but
has since picked up a knee injury.
BY ALEX SHARP
BY FRANK DALLERES
Buy online at
fulhamfc.com
or call 0843 208 1234
(option 1)
Newcastle, Southampton and Swansea tickets are on General Sale. Tottenhamtickets are currently on sale to supporters with a Booking History.
All tickets are subject to availability, terms and conditions apply.
FULHAM FOOTBALL CLUB, CRAVEN COTTAGE
Wed 26th Dec Sat 29th Dec Sat 1st Dec Mon 10th Dec
Dettori facing inquiry after failed drug test
Dettori failed the test at Longchamp
Gerrard admits he
considered quitting
England duty after
Euro 2012 earlier
this year
Andy Lloyd on Cricket: Page 33
57

Cityam 2012-11-14

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Cityam 2012-11-14

Загружено:

Авторское право:

Доступные форматы

BUSINESS WITH PERSONALITY

next to my house to accommodate

I have been to the cinema twice in the last four

Workspace plans Tower Bridge

Вам также может понравиться