Microsoft in

shock loss as
Google soars
MICROSOFT last night announced a
quarterly loss of $492m (313m)
its first since becoming a listed com-
pany on the same day that the
firms tech rival Google boosted net
income to $2.79bn.
While Googles revenues soared on
the back of growth in its web-based
advertising business, Microsoft
slipped into the red following a
writedown on its own ill-fated online
ad operations.
The firm had given the markets
advance warning that it would take
a $6.19bn hit on the value of
aQuantive, a digital marketing
group it acquired in 2007.
Despite this, revenues at Bill Gates
former company rose four per cent
to $18bn, with its Office unit helping
to offset sluggish sales of PCs that
feature its flagship Windows operat-
ing system.
Microsoft is pinning its hopes on
its new Windows 8 system, which is
due out in October and designed
with touchscreens in mind. It is also
set to break with its traditional soft-
ware-only model and produce its
own range of tablet computers.
Meanwhile Google shares rose in
after-hours trading after the firm
said total revenue was up 35 per cent
year-on-year to $12.2bn, helped by
the purchase of Motorola Mobility.
Google announced sales at its core
internet business hit $10.96bn in the
last quarter, up from $9bn a year ear-
lier, even though advertising rates
have fallen 16 per cent year-on-year.
This is because overall number of
clicks on ads increased by more than
40 per cent as the number of people
using the worlds biggest search
engine continues to grow.
THE KNOCK-DOWN sale of 632 Lloyds
branches to the Co-op yesterday was
met with disbelief by industry insid-
ers, who accused the government of
getting a bad deal on the sale.
The state-backed bank has agreed to
sell the branches for 350m up front,
followed by up to another 400m over
the next 15 years compared with the
1.5bn valuation initially suggested
But City A.M. has learned that rival
bidder NBNK offered 800m up front,
as well as higher future payments over
a smaller time-scale, raising questions
as to whether the taxpayer has lost out
on the deal.
This is a dog-shit deal for Lloyds and
the taxpayer, said a senior banking
source with knowledge of the often-
protracted negotiations. Lloyds share-
holders, including UKFI, should be
incandescent.
Another banker told City A.M. the
decision to seal a deal with the Co-op
may have been influenced by its non-
listed status.
Given that the Co-ops shares arent
traded, nobody is going to be able to
say in a couple of years time: Look
those shares have risen massively.
Thats because we undersold the
Lloyds branches, he explained.
But the Treasury insisted the deci-
sion was purely a commercial one,
with a Lloyds source arguing that the
Co-op was the only viable bidder, due
to its sizeable existing base and experi-
ence of running a bank.
Furthermore, it is thought that
Lloyds was worried NBNK would not
be able to raise the required funds,
and so was more likely to fail to com-
plete the deal than the Co-op.
In any case, chancellor George
Osborne stressed that value for money
on the deal is not the only factor to be
taken into account as the deal boosts
competition in the sector by creating a
sixth major player.
This is another step towards creat-
ing a new banking system for Britain
that gives real choice to customers and
supports the economy, he said.
The sale of hundreds of Lloyds
branches to the Co-operative creates a
new challenger bank and promotes
mutuals. This follows the sale of
Northern Rock to Virgin Money in
January and represents another
important step towards a more com-
petitive banking sector.
Around 4.8m customers will be
forcibly transferred alongside their
branches by November 2013, boosting
the Co-ops current account market
share to roughly seven per cent.
Lloyds was forced to sell the branches
under a European Commission com-
petition ruling. The branches will be
rebranded to TSB next summer.
Lloyds shares rose 1.54 per cent to
30.24p yesterday.
BY JAMES WATERSON
FTSE 100 5,714.19 +28.42 DOW 12,943.36 +34.66 NASDAQ 2,965.90 +23.30 /$ 1.57 unc / 1.28 +0.01 /$ 1.23 unc
MORE: Page 5, BOTTOM LINE: Page 9

ALLISTER HEATH: Page 2

BUSINESS WITH PERSONALITY
LONDON2012
days to go
DELVE INTO OUR 11-PAGE SPORTS WATCH SPECIAL
See Pages 21-31
See Pages 21-31
7
www.cityam.com FREE
BY TIM WALLACE
AND DAVID HELLIER
Certified Distribution
28/05/2012 till 01/07/2012 is 132,857
ISSUE 1,678 FRIDAY 20 JULY 2012
TIME FOR COMPETING
CITY A.M.S TAKE ON THE DARK KNIGHT RISES See Pages 32, 35
The Co-operative, led by Peter Marks (left), will assume millions of customers from Antonio Horta-Osorios Lloyds
CO-OP WALKS OFF
WITH A BARGAIN
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
HOME Office workers have said
they will strike next Thursday, on
the eve of the Olympics, unless the
government agrees to talk over pay
and job cuts.
Staff at the Border Agency,
passport services and the Criminal
Records Bureau are due to walk
out on 26 July, the Public and
Commercial Services union
confirmed yesterday, in a move the
CBI said beggars belief.
Other action such as a ban on
overtime is being mooted for the
duration of the Games.
The vote to strike was passed
with 57.2 per cent approval on just
20 per cent turnout.
Londons airports are braced for
record passenger numbers in the
days leading up to the Olympics.
Heathrow has forecast a 45 per
cent traffic spike compared to a
normal day on 26 July.
Border workers in the PCS and
the Immigration Services Union
staged a walkout in May over
pension rights, forcing managers
to man the immigration desks at
airports.
Home secretary Theresa May
said the industrial action so close
to the Games was shameful but
said the government will put in
place contingency plans at the
borders.
Border strike
scheduled for
Olympics eve
BY MARION DAKERS
G
E
T
T
Y
IMF: Slow UK growth puts
plans to cut deficit at risk
THE COALITION government will
have to abandon its plan to slow the
growth of the national debt if the
economic recovery fails to pick up,
the International Monetary Fund
(IMF) said yesterday.
If unemployment stays high the
most recent data puts it at 8.1 per
cent after plummeting in the three
months to May it could have seri-
ous repercussions on the economy in
the long run, through deskilling and
the loss of work ethic, the IMF said.
Given these long-term effects,
known as hysteresis, the IMF
warned that the UK cannot afford
several more years of depressed out-
put and employment. It suggested
that if meaningful growth fails to
appear, the UK must slow the pace of
its fiscal consolidation.
But the main focus of the report
was to extol the measures taken so
far by the Treasury, particularly the
reduction in the cyclically adjusted
primary deficit from seven per cent
of GDP in 2009/10 to 3.4 per cent of
GDP in 2011/12.
The UK government has made a
strong commitment to fiscal consol-
idation, said Alex Gibbs, IMF execu-
tive director for the UK, It set out a
clear and credible plan to put public
finances on a sustainable path and
created the independent Office for
EU targets Google mobile services
Europes antitrust enforcer is demanding
that Google makes sweeping changes to its
mobile services as it paves the way to serve
formal charges against the company for
anti-competitive behaviour should talks
over a settlement collapse. The regulator is
worried about how Google favours its own
products in search results; copies content
from rivals without permission; shuts out
competition with its advertising agreements
with other websites, and restricts advertisers
from moving online ad campaigns to rival
search engines.
Regulator prepares wider Libor inquiry
The UKs Financial Services Authority is
gearing up to enlarge its investigation into
the manipulation of benchmark interest
rates, which has until now focused on seven
financial institutions. The FSA has decided to
include more companies as part of its
inquiries and more individuals will also be
studied as a result.
Anadarko shelves Brazilian sale
The US oil company Anadarko has shelved
plans to sell its Brazilian assets highlighting
how western majors are cooling towards a
country once considered the most exciting
frontier in global oil.
Lombard bars trader for rate rigging
Lombard Odier Investment Managers has
barred one of its portfolio managers from
trading while it investigates his possible
links with the rate-rigging scandal. The firm
said yesterday that Michael Zrihen was no
longer trading while it actively
investigated the situation.
Deal will bring valleys up to speed
Superfast broadband is set to light up the
Welsh valleys after BT won one of the first
government-subsidised contracts to lay
fibre optic cables across the principality.
LSE in merger talks with Singapore
The London Stock Exchange Group is in
talks with the owner of the Singapore
exchange about a potential 7.2bn merger.
The British bourse is understood to have
held a series of informal conversations
with Singapore Exchange, its Asian rival,
about a formal tie-up.
Drought threatens food crisis
America's worst drought since 1956 is
threatening the world with a fresh food
crisis, pushing wheat prices to levels not
seen since the last crisis in 2008.
Samsung fail to lift Galaxy Tab ban
A US federal appeals court yesterday
refused to lift an injunction banning sales of
Samsungs Galaxy Tab 10.1 touchscreen
tablet at the request of Apple. Last month a
judge ruled that Samsung violated Apples
design patent by making a device that looks
similar to the iPad.
Ex-CEO says Duke wanted to end deal
Bill Johnson, ousted as chief executive of
Duke Energy hours after its $26bn merger
with Progress Energy, told regulators that
Duke had long been trying to scuttle the deal.
THE COST of the Olympic contract
given to security company G4S was
brought under further political
scrutiny yesterday as MPs
including Ed Miliband criticised
the firm.
A report from the public
accounts committee on
preparations for the Games
expressed concern that G4S would
receive substantial sums of public
money without providing the
contracted number of guards,
while the committees chair, MP
Margaret Hodge, said: No credible
explanation has been given for
hikes in the firms fees.
G4Ss remit was increased from
2,000 guards to 10,000 last
December, but management fees
rose 12-fold while uniform costs
shot up from 3m to 65m.
Labour leader Ed Miliband
added his voice to the growing
criticism of the embattled firm,
saying its situation beggared
belief and calling for the
government not to sign G4S to
further policing contracts until a
review into the firms ability to
deliver had been carried out.
G4S said yesterday it still
expected to lose 35m to 50m on
the contract. It said its 57m
management fee, which critics say
should be clawed back, relates to
operating costs of the contract.
Pressure on G4S
mounts as costs
come under fire
The IMF, under managing director Christine Lagarde, supports fiscal consolidation
2
NEWS
BY JAMES TITCOMB
BY BEN SOUTHWOOD
To contact the newsdesk email news@cityam.com
R
EMEMBER the view,
widespread on some parts of
the political spectrum, that
recessions and poverty are
what cause crime? Well, its
nonsense. Were in the middle of a
nasty double-dip recession, high
levels of unemployment, a national
pay cut, falling wealth, still high
inflation, an agenda dominated by
corporate scandals and yet crime is
actually falling or at the very least
stagnating. That is, without doubt,
the best news of the week.
I always take government statistics
on crime with a bucket of salt. But the
murder rate is the most accurate
crime statistic and yesterdays report
from the Office for National Statistics
revealed it fell by 14 per cent to 550
homicides in 2011-12, its lowest level
since 1983. Overall recorded crime
dropped by five per cent to under 4m
EDITORS
LETTER
ALLISTER HEATH
Its not all bad: Britain is becoming safer despite recession
FRIDAY 20 JULY 2012
offences, a 23-year low. Reported vio-
lent crime is down seven per cent. The
Crime Survey for England and Wales
is better for picking up general law
breaking but it found that overall
crime against adults remained stable.
The one area where the situation
worsened, albeit only slightly, was
other theft offences, which rose by
two per cent according to the polices
recorded crime numbers. This was
driven principally by rises in theft of
unattended property, theft from the
person, bicycle theft and shoplifting.
But there was a fall of five per cent in
domestic burglaries and the crime
survey suggests that burglary has
remained flat since 2004-05.
Households were three times less like-
ly to be burgled compared with 1995.
There is still far too much crime, but
it is excellent news that the recession
and our economic woes havent trig-
gered another spree.
STRIKE OUTRAGE
IT is an outrage that thousands of
immigration officials will go on strike
next Thursday, potentially plunging
Olympic arrivals into chaos and fur-
ther tarnishing Britains reputation.
What makes this selfish action by the
Public and Commercial Services
union so galling is that just a fifth of
the unions 16,000 members voted,
and just 57 per cent of those voted in
bid seemed stronger; many believe
that the Co-op was chosen to further
Nick Cleggs mutualist agenda.
Yet it isnt true that the cooperative
model works better than the for prof-
it model: many of the banks that
failed around the world in the past
few years have been mutuals.
The Dunfermline Building Society
was bailed out. The disastrously man-
aged cajas in Spain were not-for-profit
social institutions.
The US savings and loans crisis in
the 1990s was caused by mutuals. The
list goes on and on. The only truly suc-
cessful mutual in the UK today is John
Lewis. Virtually every other successful
firm is for-profit. There is nothing
wrong with mutuals but they are
certainly no panacea.
favour. In other words, only 11 per
cent or so of the unions members
have voted to strike. It is wrong that
such a small number of people can
hold so many hostage.
The government has acted in a cow-
ardly manner by refusing to tighten
the law on strikes. Strikes should only
be allowed if at least half of those eli-
gible to vote do so and back the indus-
trial action (a rule which could be
considered in other areas too). In the
mean time, let us hope that the
authorities are able to find a way of
minimising the damage the strikers
will inflict on the Olympics.
CO-OPS NOT ALWAYS BEST
Congratulations to the Co-op for get-
ting hold of so many Lloyds branches
at such a knock-down price. But many
taxpayers (who own a large chunk of
Lloyds) will feel ripped off. The rival
Budget Responsibility to monitor it.
The IMF report agreed with the coali-
tions focus on cutting expenditure
rather than raising taxes, and heaped
praise on various Treasury schemes to
make austerity less painful, such as the
so-called Plan for Growth and the
National Infrastructure Plan.
In this vein it supported the govern-
ments recently announced UK
Guarantees scheme, but warned: It is
important that the choice of projects
is based on using public funds as effi-
ciently as possible.
Yet Brendan Barber of the Trades
Union Congress pounced on the
report. This alarming health check on
the UK economy from the chancellors
favourite economic experts makes it
clear that plan A is not working, he
said. Continuing along this path
could cause permanent damage to the
economy. Even the Prime Minister has
hinted Britain could face perpetual
cuts, Barber went on to say.
The Treasury claimed the report vin-
dicated its approach of fiscal consoli-
dation combined with monetary and
credit easing as well as government
guarantees for infrastructure.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
THE official responsible for
controlling the Libor rate has left
the British Bankers Association
(BBA), it emerged yesterday.
John Ewan has been at the trade
body for seven years but ceased his
involvement with the organisation
this week. He has left to join data
firm Thomson Reuters, which has a
role in collating the data that sets
the Libor rate.
According to his LinkedIn profile
Ewan was hired in 2005 to put BBA
Libor on a secure commercial
footing and improve the calculation
and distribution methodology.
John Ewan is no longer at the
BBA. He left to pursue a new
opportunity to further his career, a
spokesman said yesterday.
City A.M. understands that he took
the decision to quit the organisation
in the spring, before Barclays was
issued with a record-breaking 290m
in fines for abuse of the benchmark
interest rate.
Meanwhile French bank Societe
Generale yesterday confirmed that it
has been contacted as part of a broad
probe into abuse of the Euribor rate
the European equivalent of Libor.
Traders at HSBC, Deutsche Bank
and Credit Agricole are also thought
to be under scrutiny following evi-
dence that links them to former
Barclays euroswaps trader Philippe
Moryoussef.
Libor chief quits
British Bankers
Association
BY JAMES WATERSON
G
E
T
T
Y
REVENUES slumped in the second
quarter, Morgan Stanley revealed
yesterday, with falling market confi-
dence hitting business levels hard.
But the bank reported a profit of
$564m (358.7m), compared with a
loss of $558m in the same quarter of
2011 when underlying figures
were distorted by the conversion of a
preferred stock investment made in
support of the bank at the height of
the financial crisis.
Revenues from ongoing operations
plummeted 52 per cent on the year
from $1.97bn to $940m.
Investment banking revenues fell
35 per cent on the year from $1.7bn
to $1.1bn, while revenue from merg-
er advisory fell 51 per cent to $263m.
Underwriting revenues dropped 34
per cent to $621m and equity trad-
ing revenue fell 34 per cent to
$1.22bn, both on lower market vol-
umes.
Global economic uncertainty
remains a headwind, explained
chief executive James Goreman.
However, the bank did succeed in
Morgan Stanley
revenues fall in
industry rout
BY TIM WALLACE
cutting overall costs, joining the
industry-wide trend of cutting back
to bolster profits.
Total non-interest expenses fell 17
per cent from $7.24bn to $6.01bn, led
by falling employment and pay.
Global headcount fell six per cent
on the year from 62,577 to 58,627,
while compensation and benefits
dropped 21 per cent from $4.62bn to
$3.63bn.
That takes expected compensation
per employee down 16 per cent from
$73,861 to $62,034.
Stocks slumped on the report,
falling 5.65 per cent over the day to
$13.25.
Morgan Stanley
13Jul 16Jul 18Jul 17Jul 19Jul
13.25
13.50
13.75
14.00
14.25
$
13.25
19Jul
ROBERT Wolf, chairman of UBS in
the Americas, is leaving the Swiss
bank to start his own consultancy
firm.
He has been a prominent
associate of President Barack
Obama and is a major fundraiser
for his re-election campaign.
Wolfs new firm is called 32
Advisors, after the squad number
he wore while playing American
Football for the University of
Pennsylvania.
Bob McCann, chief executive of
UBS Americas, yesterday sent a
memo to employees explaining the
Head of UBSs American arm
leaves to set up own business
BY JAMES WATERSON situation, adding that the bank will
become 32 Advisors first client
when Wolf officially leaves at the
end of the month.
He will continue to work on
current mandates, pitches and
generating new business for UBS,
the memo said.
Wolf has worked at UBS since
1994 and leaves as president of
UBSs global investment banking
business.
Last month reports suggested the
UBS board was exasperated by
Wolfs high profile association
with Obama and decided to enforce
tights restrictions on his
communications with the media.
FRIDAY 20 JULY 2012
3
NEWS
cityam.com
Robert Wolf has been known to play golf and go on holiday with Barack Obama
MILLIONS of Lloyds customers are set
to become Co-op clients under the
deal announced yesterday, making
the smaller bank a new challenger
to the UKs dominant big five.
Under the deal, set to be finalised by
Christmas, the Co-op will issue 350m
of subordinated debt in the coming
months as an initial payment for the
632 branches and 4.8m customers.
That will give the Co-op almost 10
per cent of all UK branches and seven
per cent of current accounts, as well
as additional savings accounts and an
increased mortgage book.
Depending on the banks perform-
ance over the next 15 years it will also
make additional payments of up to
400m, giving Lloyds a total of 750m.
The transfer must be complete by
November 2013 under European
Commission rules, by which point the
Verde business is expected to have a
balance sheet totalling 24bn.
Customers will be switched depend-
ing on which branch they are associat-
ed with, and will be informed of the
change when the deal is finalised
probably by the end of this year.
Lloyds boss Antonio Horta-Osorio
welcomed the deal.
BY TIM WALLACE
We believe the Co-operative will be a
good owner for our business, cus-
tomers and colleagues, and the com-
bined banking business will be a
significant competitor on the high
street with nearly 10 per cent of
todays UK branch network, he said.
But not all analysts were so keen
ratings agency Fitch downgraded the
Co-op bank from A minus to triple-B
plus on a negative ratings watch.
Fitch continues to believe that there
are execution and integration risks
associated with the transaction, partic-
ularly relating to asset quality develop-
ment and the burden on
management, Fitch warned.
Other risks include migration of
existing customers, it said.
CO-OP has clinched the purchase of the
Project Verde assets with the help of
advisers Credit Suisse and Barclays
Capital.
Leading the team for BarCap is Ben Davey,
head of the EMEA financial institutions
group in the investment banking division.
Davey, who moved to the bank from
Rothschild in 2010, heads a team with a
pedigree in buying and selling part-
nationalised assets.
It acted as adviser to Sumitomo Mitsui
Financial Group during its 4.7bn pur-
chase of RBS Aviation Capital in January,
and worked with the Central Bank of
Ireland and the Irish Ministry of Finance
while they were restructuring the coun-
trys banking system.
Davey was also involved with Lehman
Brothers Asias sale to Nomura, and
worked with Alliance & Leicester on its
2008 acquisition by Santander. He is also
a trained barrister.
Meanwhile Citigroup and JP Morgan
Cazenove helped Lloyds negotiate the
path to a sale of its 632 branches.
Lloyds hired the banks in March 2011 to
oversee the sale, following the European
ruling in 2009 that forced the part-nation-
alised lender to part with the branches.
ADVISERS PROJECT VERDE
BARCLAYS CAPITAL
CREDIT SUISSE
JP MORGAN CAZ
CITIGROUP
Lloyds Banking Group PLC
13Jul 16Jul 18Jul 17Jul 19Jul
29.50
29.75
30.00
30.25
30.50
30.75 p
30.24
19Jul
AS PART of efforts to boost new
entrants into the banking sector,
the Financial Services Authority
said yesterday that it will review
applications for banking licences
that were unsuccessful.
Financial services minister Mark
Hoban said the review would aim
to ensure the current
requirements are proportionate
and do not create excessive
barriers to entry.
The government wants more
choice in banking which is
dominated by the big four
lenders, HSBC, Lloyds, Barclays
and Royal Bank of Scotland.
As part of this, Hoban yesterday
also took steps to reduce the
power of the countrys big banks
to set policy for the payments
BY CITY A.M. REPORTER
system, which handles trillions of
pounds.
Hoban wants a new body that
would be directly supervised by
market regulators, ending a
system whereby banks, who own
the payments networks, also
decide policy.
We need a payments system
that responds to the needs of
customers and is not just run for
the banks, Hoban said.
The government is also cracking
down on the mis-selling of
financial products. The Office of
Fair Trading will get powers, with
immediate effect, to suspend
licences for firms such as payday
lenders who supply credit.
Stripping a firm of its licence
can currently take years because
of the lengthy appeals process.
BOTTOMLINE: Page 9

FRIDAY 20 JULY 2012
5
NEWS
cityam.com
Q
How do I know if my account is being
moved?
A
All of the branches in question are
on the Lloyds website, and once
the deal is finalised the bank will
write to you.
Q
Will my services be affected?
A
The aim is to transfer IT systems
over to the Co-op, which includes
online access so the hope is only
the branding will change. If you have
a specific fixed deal, for example on
a mortgage, then it will remain
unchanged; the arrangements are
not finalised for current and savings
accounts.
Q
Can I stay with Lloyds if I dont want to
move to the Co-op?
A
Lloyds hasnt decided
how to deal with customers who
do not want to leave, but there is
nothing to stop you opening an
account at another branch.
Q
What happens to my deposit guarantee?
A
Deposits are guaranteed up to
80,000 per
banking licence.
Lloyds is
transferring a
licence to the Co-
op, so if you have
80,000 in Co-op
accounts, and
80,000 in Lloyds
accounts, both
will be protected.
What happens to Lloyds customers?
30%
16%
14%
13%
12%
7%
3%
5%
%
Lloyds
RBS
HSBC
Barclays
Santander
Nationwide
Co-operative
Others
Q
A
and
Co-ops current account market
share will hit seven per cent
S
O
U
R
C
E
:

O
F
T

2
0
1
0
Co-op to break
dominance of
top tier banks
FSA in bid to create rivals to
offer more banking choice
LABOUR yesterday stepped up the
pressure on trade minister Lord
Green to answer questions about
his time at the helm of HSBC,
following revelations about the
banks involvement in money
laundering.
Green must come to the House
of Lords to answer questions about
his role and his involvement in the
HSBC issue and must answer the
question of what he knew and
when he knew it, said opposition
leader Ed Miliband.
Labours Baroness Royall yester-
day sent a letter to the leader of the
House, Lord Strathclyde, demanding
he calls Lord Green to address the
upper chamber before the summer
recess begins next week.
Green was chief executive of
HSBC between 2003 and 2006, then
chairman until he was appointed a
Conservative peer in 2010. Currently
a minister for trade and investment,
he also acts as a banking adviser to
chancellor George Osborne.
But his reputation took a hit this
week after a damning US Senate
report highlighted the banks deal-
ings with rogue states and drug car-
tels during his tenure. One senator
said the banks compliance culture
had been pervasively polluted for a
long time.
Green has yet to comment on the
allegations.
Miliband aims
for Green over
HSBC scandal
BY JAMES WATERSON
G
E
T
T
Y
RULES forcing banks to build up their
liquidity buffers should be relaxed to
allow lenders to boost lending, the
Confederation of British Industry
(CBI) said yesterday.
The business group called on the
Financial Services Authority (FSA) to
urgently loosen the regulations as
part of a growth strategy to help the
UK escape its economic slump.
The Treasury and Bank of England
have signalled a willing-
ness to relax liquidity
rules, but the FSA
needs to drive for-
ward with these
changes immedi-
ately so that banks
can release funding
into the economy,
CBI director general
John Cridland said.
The government has
this week announced
good initiatives to boost
exports, and the
Funding for
L e n d i n g
Relax liquidity
rules to boost
lending CBI
BY JULIAN HARRIS
scheme should help lower costs, but
action on liquidity buffers would have
most impact now, Cridland added.
The CBI was responding to the
Banks latest trends in lending report,
which showed subdued levels of sup-
port for businesses. The group released
its own report yesterday, calling for
financial regulation that is fit for
recovery.
As well of modifying the UKs so-
called super-equivalents on interna-
tional liquidity requirements, the CBI
more broadly called for a specific
growth objective for the new financial
regulators in the UK. The report also
said that regulations must not block
diverse sources of finance, for exam-
ple by allowing insurers to play
their part as long-term investors
through getting the Solvency II
reforms right.
The Bank should also consider buy-
ing private sector debt, the CBI sug-
gested.
John Cridland wants banks
to lend more to companies
THE SERIOUS Fraud Office (SFO)
has been forced to drop its
investigation into two more people
connected with the collapse of
Icelandic bank Kaupthing, in an
embarrassing climbdown on its
most high-profile case.
Former chief executive Armann
Thorvaldsson and ex-treasurer
Gudni Adalsteinsson have been
released from police bail, just
weeks after the SFO dropped a
separate investigation into tycoon
Vincent Tchenguizs dealings with
the bank.
The SFO confirmed it had ceased
SFO backs down on Kaupthing
investigation as two released
BY JAMES TITCOMB the investigation but did not
identify the two men.
Thorvaldssons lawyer Arnondo
Chakrabarti told City A.M.: Our
client is happy to put behind him
an investigation that should never
have been started.
The SFO could now face legal
action from the pair.
Tchenguiz has already said he
will sue the SFO for 100m.
A judicial review into the arrest
of Tchenguiz and his brother
Robert is currently being decided.
The SFO started probing
Kaupthing in 2009 after huge
loans were taken out of the bank
shortly before its collapse.
BANK LENDING: Page 19

FRIDAY 20 JULY 2012
6
NEWS
cityam.com
You must be aged 16 or above and have a UK mobile number and a UK current account to send or receive money using Barclays Pingit. Terms, conditions
and other restrictions apply. Barclays Pingit app only works with Android 2.2 and above, iOS 4.2 and above and BlackBerry OS 5.0 and above. Features
within the Features Store are available on all Barclays current accounts except for Cash Card and accounts for children.
Barclays Bank PLC is authorised and regulated by the Financial Services Authority (FSA). Registered No 1026167. Registered Ofce: 1 Churchill Place, London E14 5HP.
Send money using just a mobile
number with Barclays Pingit,
available on Barclays Features Store.
Barclays Features Store is an interactive hub that lets you shape
your current account around your life. All you have to do is
add the Features you want and leave out the ones you dont. So,
if you live life on the move, download the Barclays Pingit app.
Find out more in branch, on 0800 1583215 or at
barclays.co.uk/featuresstore
The SFO also dropped its probe into Vincent Tchenguiz last month
DEUTSCHE Bank is set to cut jobs in its
investment banking arm, it emerged yesterday,
thanks to tougher conditions in capital markets.
In April the bank announced there would be
no job losses in the lucrative business.
But since then conditions in the Eurozone
have worsened dramatically, reducing client
activity and driving banks across the world to
cut back on expenses, including staff, to shore
up profits.
A slowdown in trading activity in the three
months to June has forced investment banks
including Credit Suisse, Goldman Sachs and UBS
to slash staff.
The 1,000 losses come on top of the 500
announced last October in the corporate banking
and securities areas, when the institution
complained of a significant and unabated
slowdown in client activity.
The bank would not confirm when or where
the job losses will fall, although more
information is expected to be forthcoming when
it reveals its second quarter earnings at the end
of the month.
But the gloomy outlook for staff did not weigh
on markets Deutsche Banks shares rose 0.55
per cent yesterday to hit 25.75 (20.12),
although it has suffered through the second
quarter, falling from a high of 39.50 in March.
Deutsche Bank set to
slash 1,000 jobs as
Eurozone crisis bites
BY TIM WALLACE
Deutsche Bank AG
18Jul 19Jul 13Jul 16Jul 17Jul
26.25
25.75
26.00
25.25
25.50
24.75
25.00

25.75
19Jul
Blackstone profits
fall back as volatile
markets hit assets
7
NEWS
BLACKSTONE Group, the largest publicly listed
alternative asset manager, said yesterday its second-
quarter earnings had dropped as challenging public
markets eroded the value of its assets and crimped
its lucrative performance fees.
The firms earnings, however, still beat market
expectations as its assets proved resilient in a
market slump caused by the Eurozone debt crisis
and fears over global economic growth, and as the
firm generated more cash by exiting investments.
Blackstone, whose investments include the
Weather Channel, Pinnacle Foods and SeaWorld
Parks & Entertainment, reported that economic net
income (ENI), a metric of its profitability that takes
into account the market valuation of its portfolio, fell
74 per cent from a year earlier to $212m (134.8m).
In an environment characterised by slowing
global growth and heightened investor caution, our
limited partner investors are entrusting us with a
greater share of their capital, Blackstone chief
executive Stephen Schwarzman said in a statement.
Distributable earnings, which show cash available
to pay dividends, slipped one per cent to $188m. Fee-
related earnings, usually the most reliable source of
profits, dropped seven per cent to $146m, dragged
down because transaction fees were down 15 per
cent on lower deal activity.
Dry powder, the firms ammunition for new deals
around the world, was $36bn at the end of the
second quarter, with $16.4bn available to buy
companies and $12.3bn on hand to invest in real
estate, Blackstone said.
Blackstones assets under management were
$190bn as of the end of June, little changed from the
previous quarter. Fee-earning assets under
management were also steady at $158bn, albeit at a
record.
BY HARRY BANKS
Important: due to the fast moving nature of this market, all offers, prices and availability are subject to change. All information is accurate at the time of going to print. 1Pay monthly prices are subject to credit check and minimum term of 24 months on selected networks and tariffs.
Geek Squad service plans available from 13.99 per month.
HALF PRICE
SALE
NOW
49
300 minutes, unlimited texts, 750 MB
SAMSUNG GALAXY S III
UPFRONT COST
BETTER THAN HALF PRICE
26
PER MONTH
1
UPFRONT COST WAS 150
in store mobile carphonewarehouse.com
Call our upgrade hotline now on 0800 049 4443
WE COMPARE ALL THE MAJOR NETWORKS
TO MAKE SURE YOUVE GOT OUR BEST VALUE UPGRADE DEAL.
FACTORY SALE
-VOTIVL[VM[\[PWM\QMUISMZ[
IZMPWTLQVOIXWX]X[ITMNWZWVM
_MMSWVTaQV6W\\QVO0QTT
REDUCTIONS OF UP TO 80%
and
12 Needham Road | Notting Hill | W11 2RP
Until Sunday 22
nd
July
week 12-8pm | sat. 10-7pm | sun. 12-6pm
NOKIA reported losses of 826m
(646.7m) for the three months to
July yesterday and warned of more
dismal figures in the current quar-
ter, but shares in the troubled com-
pany jumped with results not as
bad as feared.
The Finnish mobile phone manu-
facturer sold just 10.2m devices
over the period, compared with
16.7m for the same stretch last
year, and wrote off 220m worth of
phones, although sales of its flag-
ship Lumia models were double
the previous quarters.
It now controls just 10 per cent of
the smartphone market, down
from 40 per cent three years ago,
due to the popularity of offerings
from rivals Apple and Samsung.
Nokias operating margin
dropped to -11.8 per cent, from -5.2
per cent in the previous quarter
and -4 per cent in last years com-
parative period. Sales also dropped
26 per cent since last year, to
4.02bn.
Chief executive Stephen Elop said
the firm was going through a
Nokia writes
off 220m as
losses deepen
BY JAMES TITCOMB
transition period as Nokia adopts
the Windows Phone operating system
on its devices.
Despite the firms losses, shares rose
by 10 per cent yesterday as analysts
said the results were ahead of expec-
tations, and that sales of low-end fea-
ture phones had remained stable.
Tech analyst Janardon Menon at
Liberum Capital said all depends on
Windows Phone 8, the next iteration
of Microsofts software.
Carphone Warehouses chief com-
mercial officer Graham Stapleton
said: There are still many reasons to
be optimistic about Nokia. Their turn-
around wont happen overnight but
Im confident they will succeed.
Nokia
13Jul 16Jul 18Jul 17Jul 19Jul
1.40
1.35
1.45
1.50
1.55
1.60
1.65
1.53
19Jul
PEARSON, the owner of Penguin
Books, yesterday announced the
purchase of self-publishing firm
Author Solutions Inc (ASI) for
$116m (73.8m) in cash.
ASI has around 1,600 employees
based mainly in the US and
Philippines. Pearson said the unit
has revenues of around $100m and
has helped release 190,000 books.
This acquisition will allow
Penguin to participate fully in
perhaps the fastest-growing area of
the publishing economy, said
Penguin chief executive John
Makinson.
Pearson buys
self-publisher
BY JAMES WATERSON
PUB and restaurant firm Mitchells &
Butlers, which operates chains
including All Bar One, ONeills and
Toby Carvery, said yesterday that the
wet weather has severely damaged
attempts to grow the business.
Like-for-like sales growth was just
0.4 per cent in the 14 weeks to 14
July, with the Euro 2012 football
tournament also impacting on
sales. While drinks sales dropped
1.4 per cent in the quarter, revenue
from food was up by two per cent.
The search continues for the
firms first permanent chief
executive since March 2011.
Pub firm hit by
wet summer
BY JAMES WATERSON
FRIDAY 20 JULY 2012
9
NEWS
cityam.com
P
ETER Marks, group chief executive of
the Co-operative Group, said in
March that there were very material
regulatory issues holding back its
purchase of branches from Lloyds Banking
Group. Yesterdays non-binding
announcement of terms for the deal
suggests both sides are confident the FSA
wont now stand in their way.
But have the issues really been resolved?
Bringing in Paul Pester, currently head of
the Verde branches for Lloyds, to run the
combined banking business solves the lack
of a chief executive at the Co-operative
Banking Group. However, given Neville
Richardson stood down last summer just
two weeks after the group made its bid for
Verde, prompting speculation he thought it
was a bad idea, thats not too reassuring.
There are also wider questions about the
BOTTOM
LINE
MARC SIDWELL
Lingering worries for a deal in a hurry
mutuals level of experience given the huge
growth spurt the acquisition represents
from 300-odd branches to nearer 1,000 and
more than doubling its market share to
around seven per cent of UK personal
current accounts. The flipside of creating
more competition is expecting a smaller
player to punch above its weight almost
overnight.
After the recent RBS fiasco, its good to see
that fears about the Co-ops ability to merge
IT systems successfully, following a sluggish
process with Britannia, have been addressed
by a commitment to use the Lloyds Banking
Group platform under licence.
But last nights downgrade of the bank
by Fitch, and its warning that a further
downgrade is likely if the Verde deal does
go through, was far from a vote of
confidence in the financials. Some see the
Co-ops core tier I capital as relatively low at
9.6 per cent, while its 2011 profits were flat
in banking and fell sharply across the
whole group. The Co-operative Bank has
high customer ratings for some current
accounts and its online bank Smile. But
that doesnt make this huge deal good for
consumers. There are plenty of question
marks, and every sign of a rush-job to meet
the November 2013 divestment deadline.
Marc Sidwell is City A.M.s managing editor
SPORTS Direct won a game of two
halves on the high street yesterday,
with a flair for discounting and
online retail helping it trounce sales
at ailing rival JJB Sports, which made
a plea for fresh funding.
Sports Direct, controlled by billion-
aire Newcastle United owner Mike
Ashley, yesterday said its underlying
pre-tax profit rose 17.3 per cent to
162.1m in the year to 29 April.
The retailer said group revenue
jumped 13 per cent to 1.83bn,
thanks in part to an 82 per cent surge
in online sales to 174m.
Around 3,000 staff at the firm are in
line for share awards after it sur-
passed super stretch earnings tar-
gets.
Ashley himself is in line for 8m
shares, worth 23m at current prices
but not due to vest until 2018, if the
company keeps up its strong perform-
ance through to 2015.
Shares fell 1.4 per cent, however, as
some investors were disappointed at
Sports Direct
hits bonus goal
as JJB struggles
BY MARION DAKERS
the lack of dividend news and a slight
margin squeeze.
JJB Sports, meanwhile, said it had
seen poor sales of football kits, partly
due to wet weather keeping shoppers
off the high street, leading like-for-like
sales down 8.7 per cent in the 24
weeks to 15 July.
The firms directors said the head-
winds facing the business are putting
its turnaround strategy in peril. JJB
remains in talks with partners to
bring forward a cash injection.
Kingfisher cuts prices
to shore up its sales
KINGFISHER, Europes biggest
home improvement retailer, said
yesterday its underlying sales
recovered in its second quarter,
showing its resilience in the
economic downturn even though
heavy rain put British and
French shoppers off buying
seasonal ranges.
The firm, which runs the
market-leading B&Q chain, said
sales at stores open over a year
fell 0.4 per cent in the 10 weeks
to 7 July.
BY HARRY BANKS
That compares with a first
quarter fall of 4.8 per cent.
Like-for-like sales at B&Q UK
and Ireland rose 1.6 per cent.
However, the firm said B&Q's
gross margin is expected to be
down, reflecting price cuts to
clear horticultural stocks and
other promotions to tempt
shoppers into indulging despite
the wet weather.
Shares in the retailer fell 1.3
per cent to close at 271.6p
yesterday. Kingfisher stock has
slipped 12 per cent in the last
three months.
JJB Sports PLC
18Jul 19Jul 13Jul 16Jul 17Jul
5.50
6.00
6.50
7.00
7.50
8.00 p
5.70
19Jul
UK RETAIL SALES: Page 19

FRIDAY 20 JULY 2012
10
NEWS
cityam.com
C
I
T
Y
A
M
C
A
R
E
E
R
S
.
c
o
m
*all Q2 like for like sales unless otherwise specied
8.7%
half-year to 15 July
13.4%
4.4%
5.6%
0.4%
10weeks to 7 July
24.4%
13%
revenues for year
to 20April
5.1%
3.1%
HOME RETAIL
GROUP
0.2%
2.8%
THE Chinese are still snapping up
Birkin bags and rare Cognacs,
boosting sales for European luxury
goods companies Hermes and Remy
Cointreau and calming fears that
demand may be cooling.
French spirits group Remy
Cointreau beat forecasts with a 24.4
per cent rise in first-quarter sales, it
said yesterday, driven by robust
demand for its cognac in Asia and
the United States.
Similarly, Hermes reported a 13.4
per cent rise in second-quarter sales
supported by strong growth in the
Asia-Pacific region outside of Japan,
which rose 26.9 per cent.
Cointreau and
Hermes grow
BY CITY A.M. REPORTER
Damp squib: Many UK retailers have been hit by the rain
IN BRIEF
Profits jump at Paragon
nBuy-to-let mortgage firm Paragon
Group said yesterday its operating
profit had reached 68.9m for the
nine months to 30 June 2012, a strong
performance in line with management
expectations. The group put the 17 per
cent increase, up from 58.9m last
year, down to its acquired portfolio of
consumer loans. Pre-tax profits,
including a 600,000 credit for fair
value hedging, were 69.5m.
Coller raises $5.5bn for sixth fund
nColler Capital has raised $5.5bn
(3.5bn) 10 per cent more than
initially targeted to buy private
equity investments from banks and
other investors. The money will fund
its sixth so-called secondaries fund.
Coller was one of the first firms to
specialise in buying positions in
private equity funds, as well as
acquiring portfolios of stakes in
private companies.
Vivendi mulls sale of Brazil unit
nVivendi is considering selling its
Brazilian telecom unit GVT, sources
said last night. A sale of GVT could be
worth up to 8.5bn and comes after
the French groups exploratory talks
to offload video games unit Activision
Blizzard found few takers at the price
it sought. A sale of GVT is no longer
taboo and is now being considered
internally, the source said.
THE CHIEF executive of struggling
European newspaper publisher
Mecom stepped down yesterday
following investor anger at the
companys strategy.
Tom Toumazis, who became CEO
last year, will step down in
September. Chairman Stephen
Davidson will become executive
chairman and oversee a strategic
review at the firm, which is likely
to be broken up with many of its
international operations sold.
The group, which owns hundreds
of newspapers in the Netherlands,
Denmark and Poland, has struggled
in the current environment.
The companys value had
plummeted last month when it
issued a profit warning due to weak
advertising revenues.
Mecoms shares rose 17 per cent
on news of Toumaziss departure.
Mecom chief
steps down as
break-up eyed
BY JAMES TITCOMB
THE BOSS of Halfords has quit with
immediate effect following a fresh
drop in quarterly sales that was
branded disastrous by analysts.
David Wild abruptly quit his post
yesterday after four years at the helm,
and the bicycle and car parts retailer
has mandated headhunter Egon
Zehnder to help with the search for
Halfords new chief executive.
The FTSE 250-listed firm admitted
that it had suffered a weak start to
the quarter, and overall saw a 5.6 per
cent slump in like-for-like group rev-
enues.
And the outlook remains grim,
with Halfords expecting like-for-like
sales in the second half to be flat to
mid-single-digit negative.
In line with other retailers experi-
encing a sales drought this year,
Halfords blamed the rain for some of
its woes.
BY MARION DAKERS
The consumer environment
remains difficult and the unseasonal
weather conditions this quarter had a
direct impact on sales of cycles and
outdoor leisure products, said
Dennis Millard, who is acting as exec-
utive chairman until a permanent
leader is found.
The company set out plans for a
strategic overhaul in May, narrowing
its focus in a bid to slow its sales
slump.
DO YOU THINK THE OLYMPICS WILL
BE A BOOST TO THE ECONOMY?
Interviews by Francesa Davie and Jamie Sutherland
I think it mainly will affect the retail sector,
because of the amount of people coming into
the area. I agree that London will attract more attention
than usual. Its a big player in the world.
These views are those of the individuals above andnot necessarily those of their company
ALEX TROTT
ABERDEEN ASSET
MANAGEMENT

I doubt there will be a prot overall, in fact, it

probably cost more to develop the transport
and policing and everything else. Possibly there will be
more foreign investments from construction and so on.
JOE CHICK
SEB KEY ASSET
MANAGEMENT
I agree the Olympics will have an impact. It
will be benecial and bring quite a lot to the
British economy. For London, it will bring a signicant
prot and a lot of activity will be generated.
SIMON VIVIAN
BREEDON AGGREGATES

Man Utd could list as

early as next week
MANCHESTER UNITED is expected
to file for an initial public offering
(IPO) in New York as early as next
week for pricing in early August,
after earlier attempts in Britain,
Hong Kong and Singapore failed to
reach expectations.
The club had originally aimed to
proceed with the listing in early
September, but has moved its
plans forward, according to
multiple sources close to the
situation.
It is looking to raise $300m
(191.6m) on the IPO, less than the
$500m previously contemplated.
The decision on timing and
sizing is believed to still be open to
change, depending on the
regulatory review process.
Investment bank Jefferies is
advising the club, which has a
debt of 425m, from New York
along with other banks Credit
BY HARRY BANKS
Suisse, JPMorgan Chase, Deutsche
Bank and Bank of America.
The banks plan to benchmark
the IPO not only against traditional
media entities but iconic
consumer-goods companies, in an
effort to justify a potentially
difficult valuation.
Manchester United, the best-
supported club in the world, took
the decision to cancel its plans for
its $1bn IPO in Singapore last year
following market turmoil. It is
currently owned by the US-based
Glazer family, which is keen to
continue to own a controlling
stake in the club.
A flotation on the New York
Stock Exchange would enable the
club to list with a dual-class share
structure that would give the
Glazers majority voting rights.
Manchester United and its
advisers did not comment
yesterday on the plans or the date
of a listing.
CITYVIEWS
David Wilds departure was greeted by a lift in Halfords shares
Halfords Group PLC
18Jul 19Jul 13Jul 16Jul 17Jul
195
200
190
205
210
215
220 p
205.80
19Jul
ANALYST VIEWS

HOW SHOULD INVESTORS

TAKE HALFORDS RESULTS?
By Marion Dakers
DAVID JEARY INVESTEC
BABY products retailer
Mothercare, facing intensifying
competition in Britain, said its
overseas sales rose 11 per cent in
the first quarter, contrasting with
a more than 10 per cent fall in
total sales in its home market.
The company, which also sells
maternity wear, said comparable
Mothercare chases international
customers as UK takings decline
BY HARRY BANKS
sales in the UK fell 6.7 per cent in
the 15 weeks ended 14 July. Total
UK sales fell 10.2 per cent.
Chief executive Simon Calver
said the fall in domestic sales was
partly down to the firm closing 16
of its UK shops during the quarter.
Shares rose 4.6 per cent on relief
that the drop was not any worse.
Shareholders passed all
resolutions at yesterdays AGM.
FRIDAY 20 JULY 2012
12
NEWS
cityam.com
Chief executive Simon Calver is overseeing a three-year overhaul strategy
We think the shares should react positively to newsow today as Q1 trad-
ing is no worse than depressed market expectations, Halfords has stated it
will maintain its interim dividend, and due to management changes.

AURELIE CASPAR BANK OF AMERICA MERRILL LYNCH

A disastrous Q1, which will result in further consensus downgrades. The
big news is the departure of David Wild, CEO since 2008. We see the
departure of Wild as a potential positive trigger for the shares.

KATE CALVERT SEYMOUR PIERCE

[This year] looks set to be tough, and clearly a change of CEO adds an
element of uncertainty to the business. However, strategy is unchanged, cash
generation remains strong, supporting our unchanged dividend forecast.
AMERICAN telecoms operator
Verizon yesterday reported that its
profits rose by 19 per cent in the
second quarter of the year, thanks to
a huge rise in mobile data revenues.
Income rose to $4.28bn (2.72bn)
on a 3.7 per cent rise in sales to
$28.6bn, largely driven by the firms
mobile network Verizon Wireless.
Data sales now make up almost half
of the mobile arms turnover.
Verizons chief financial officer
Fran Shammo said: Wireless is
firing on all cylinders.
Verizon sees
earnings leap
BY JAMES TITCOMB
Halfords boss
quits as sales
shrink again
THE SUMMER washout has
dampened sales of soft drinks,
Britvic complained yesterday as it
reported a deluge of disappointing
figures.
Britvics revenues dropped 7.6 per
cent in the quarter, hurt by a
currency impact as well as falling
sales.
The firm was last month forced to
recall its Fruit Shoot drinks after a
choking scare over a new drinks cap,
and as a result the company has
trimmed capital expenditure for the
BY MARION DAKER year from around 70m to 50m. But
the firm kept its full-year guidance
unchanged yesterday, having already
said last week that the recall is
expected to knock between 15m
and 25m off profit before tax over
the next two years.
Britain was not the only country
to spurn soft drinks during the
summer rain. Britvics revenues in
Ireland fell 11 per cent compared to
a year ago, while volumes dropped
and revenues rose in France.
Analysts at Shore Capital said that
despite the falling sales, Britvic was
gaining market share.
Wet weather leads to drought
for revenue growth for Britvic
Active 3 seater recliner sofa in leather and leather look material. Credit subject to acceptance. Credit is provided by external nance companies as determined by DFS. 4 years interest free credit from date of order. Delivery charges apply. Sale price applies from 30.07.12 to 09.09.12.
After sale price applies from 10.09.12 - see instore or online for details. Mobile charges may apply when calling 0800 110 5000. DFS is a division of DFS Trading Ltd. Registered in England and Wales No 01735950. Redhouse Interchange, Doncaster, DN6 7NA.
Visit your nearest store, order direct at www.dfs.co.uk or call free on 0800 110 5000 24 hours a day, 7 days a week
4 years interest free credit on everything
Or pay nothing until Easter 2013 then take 3 years
interest free credit
0
%
REPRESENTATIVE
APR
No deposit with 4 years interest free credit. 48 equal monthly payments of 14.56. Or pay nothing until Easter 2013 then 36 equal monthly payments of 19.41. 0% APR. Total 699.
sale
price
1049
after sale
price
1399
Active
now only
699
the DFS
summer sale
L
A
S
T

D
A
Y
S

T
O
S
A
V
E

D
O
U
B
L
E
Summer Sale Opening Hours: Now open 10am to 6pm Sundays
The Ultimate Coffee Experience in the Heart of London
www.nespresso.com
Come and Experience Nespresso
at 54 Regent Street
T
here were many at the Co-ops
headquarters near Manchester
who never thought it
would happen. Not the
successful bid for the Lloyds
branches that Lloyds had been
forced to sell
for
competition
reasons by the
EU. Despite a few jitters, Co-op
insiders were always confident of
clinching a deal.
But one thing did surprise many
Co-op insiders yesterday. For the first
time that anybody could remember
Co-op trended on Twitter, the social
media tool.
This hitherto unheard of phenome-
non happened most of yesterday
morning after news of the deal with
Lloyds was released to the London
Co-op trends
on Twitter after
Lloyds decision
Stock Exchange. All morning weve
been trending alongside Ledley
King, the Tottenham Hotspur
footballer who announced his
retirement and somebody called
Shea Weber, said my man up in
the north.
Weber, for the
uninitiated, is a
Canadian ice
hockey player clearly better known
across the pond than in Lancashire.
Some companies try to organise
events solely to trend on Twitter but
this just happened and its amazing.
You can reach a lot of people this
way, said another excited soul who
works at the venerable institution.
Not all were happy with the deal,
however. Customer choice? Then let
US choose if we want to move, tweet-
ed one Lloyds customer.
Got A Story? Email
thecapitalist@cityam.com
15
cityam.com
cityam.com/the-capitalist
THECAPITALIST
There has been a sudden flurry of
excitement as the organisers of
the Olympic Games have investigated
claims that a website owned by the
Middleton family (Kates parents)
breached Olympic branding laws.
Several items on the familys Party
Pieces website appear to go against
restrictions put in place by the
International Olympic Committee and
Locog to protect official sponsors.
But last night there was a plea for calm
from the hyper-busy Olympics team.
There have been no infringements and
the products are fine, said a
spokesman, adding: We might ask for
a small copy change.
FRIDAY 20 JULY 2012
E
-
pad
APARTMENTS
LONDON E14
EAST LONDON
STYLE BY
TELFORD HOMES
E-pad 18 stylish new apartments
East London living, designed to suit the
lifestyle of a new generation of buyers with
a great location that means less travel time
which makes for a great work/life balance
Over 50% already sold!
18 stylish new apartments just 7 minutes

from Canary Wharf.

One, two and three bedroom apartments with outstanding specification,
supported by exceptional 24/7 Customer Service.
5-10 minutes walk to Langdon Park DLR station with connections for rapid transit
to Canary Wharf or Stratford City and access to Tube connections for The City.
Completions due Q1 2013 (est. ).
Prices from 215,000*
*
Prices correct at time of going to print.Transit time station to station
from Langdon Park to Canary Wharf courtesy of www.tfl.gov.uk
Call: 0203 538 3272
www.telfordhomes.plc.uk
Selling Agent:
Actual view south west from E-pad
5
th
floor towards Canary Wharf.
A development by:
The Capitalist has played a little FIFA
2012 and has heard of Angry Birds
but until yesterday had not been
aware of another computer game
called Runescape.
Yesterday the creators of
Runescape, a company based in
Cambridge called Jagex, claimed the
adventure fantasy game now has
200m registered users, making it,
they claim, the most played online
game in history. Players can sign up
for free although there is also a
charging subscription model
offering added functions.
200m sign up
for Runescape
BURBERRY chief executive Angela Ahrendts (left) and LSE boss Xavier Rolet (right)
commemorate the tenth anniversary of Burberrys flotation on the London markets.
Burberrys share price has increased 436 per cent since its flotation, a reminder that
there was once a way to make good money from London IPOs.
TEN YEARS ON FROM BURBERRY IPO
IN BRIEF
Avocet names new chief executive
nWest Africa-focused Avocet Mining
has named engineering veteran David
Cather as its new chief executive, as it
seeks to reassure the market on its oper-
ations and boost shares battered by
reduced output outlook and worries
over expansion plans. The miner said
yesterday it had accepted Brett Richards
resignation, appointing mining engineer
Cather, who joined the company in May
2012 as chief operating officer, in his
place. Last month, Avocet cut its produc-
tion outlook for the full year citing
equipment availability issues.
Gulf Keystone lifts oil estimate
nGulf Keystone yesterday upgraded
its oil estimates for the for the Shaikan
field in the Kurdistan Region of Iraq to
a mean value of 13.7bn barrels. The
field has between a probable value of
12.4bn barrels to a proven value of
15bn barrels of oil-in-place, giving an
average of 13.7bn, compared to the
previously announced range of 8.0 to
13.4bn barrels with a mean value of
10.5bn barrels. The upgrade is based
on data acquired since the last
resource evaluation in November 2011
and is the fourth successive upward
revision since the Shaikan discovery
was announced in August 2009.
Heritage Oil gets forecast boost
nThe Nigerian oil mining lease in the
process of being bought by UK inde-
pendent Heritage Oil has 58 per cent
more proved and probable reserves
than previously estimated, Heritage
said yesterday citing a report by indus-
try specialists RPS Energy Consultants.
The independent report, commissioned
to assess OML 30, has increased the
blocks proved and probable reserves
to 1.114bn barrels of oil, compared with
Heritages 29 June estimate of 707m
barrels. There is considerable upside,
said Heritage chief Tony Buckingham.
OIL INDUSTRY services firm Wood
Group said yesterday its chief execu-
tive Allister Langlands will step up to
the chairmans role and Bob Keiller,
currently in charge of the part of the
business that maintains oil pipelines,
will replace him.
The sweeping shake-up at the top of
the company also sees Ian Wood, who
has been chairman for 30 years, retir-
ing. The UK corporate governance
code frowns upon the practice of
chief executives stepping into chair-
man jobs, as the move can make it
hard for new chief executives to chal-
lenge their predecessors decisions.
FTSE 250 company Wood Group
yesterday acknowledged Langlands
move to the chairmans position was
not usual practice, but said it had
consulted with shareholders owning
more than 40 per cent of the compa-
ny, and they supported the board
changes.
New chief executive Keiller is cur-
rently head of the Wood Group PSN
division, a business that maintains
and services the production facilities
of oil companies such as Shell and
Talisman, and is Wood Groups
biggest division on a revenue-basis.
The management changes will take
effect from 1 November, Wood Group
said.
Ian Wood, who owns a 5.7 per cent
stake in the company which was
Wood Groups
board reshuffle
sparks bid talk
BY HARRY BANKS founded by his grandfather to repair
ships in the early twentieth century,
was chief executive of the group
between 1967 and 2006.
Analyst James Evans at Canaccord
Genuity said: Wood Group has in the
past been seen as a takeover target, in
part due to its mid-cap status but par-
ticularly due to the attractiveness of
some of its businesses. With Sir Ian
Wood stepping away from the compa-
ny and limited family involvement
remaining, we think that there could
be renewed speculation about Wood
Group being targeted.
Oriel Securities said takeover activi-
ty was one possibility, but warned the
moves may also lead to further share
sales by the family. Whilst it may
open up potential for M&A activity or
bids for the company, it also potential-
ly raises the possibility that the Wood
family may try to place shares in the
near future, it said in a note.
Actelion raises its earnings
forecast thanks to cost cuts
ACTELION raised its earnings
outlook for 2012 yesterday as
cost cuts helped Europes biggest
biotech company to post a first-
half profit despite its most
important drug facing tough
competition in the US.
Actelion said it now expects
core earnings to grow in a mid
single-digit percentage range for
BY CITY A.M. REPORTER
2012, compared with previous
guidance for no core earnings
growth. That rosier view is the
second upward revision to its
outlook this year.
Actelion continues to expect
product sales to decrease in the
low single-digit range for the
full year 2012, chief financial
officer Andrew Oakley said.
Actelion said cost cuts it
launched in recent months were
already helping profitability
with net income for the first
half of 174m Swiss francs
(113m), compared with a net
loss of 262m Swiss francs in the
same period last year.
A strong half year result for
the pharmaceutical company,
which initially seems to have
passed its health check,
analysts at Swiss private bank
Notenstein said.
John Wood Group PLC
18Jul 19Jul 13Jul 16Jul 17Jul
730
740
750
760
770 p
760.50
19Jul
FRIDAY 20 JULY 2012
16
NEWS
cityam.com
LONDON 2012 IMAGE OF THE WEEK
A GOLDEN BMW convoy will journey across
London between the 20 and 25 July. If you
want the chance to experience the Games,
spot a golden BMW, snap a picture and
share it via Twitter @GoldenBMW to win a
pair of tickets to the Games every day.
Between now and the start of the
Olympics, City A.M. is publishing its
Olympic Image of the Week. If you have
a shot you think our readers will like,
please email pictures@cityam.com with
IOW2012 in the subject line.
Shanks units hit by slowing
trade amid gloomy economy
SHANKS yesterday warned that
the tough economic climate had
hit some sections of its business.
In particular, the company said
that its solid waste section was
suffering.
Chief executive Peter Dilnot
said: While market conditions
continue to be challenging, partic-
ularly in our Solid Waste business-
es, our organics, UK municipal and
BY CITY A.M. REPORTER
hazardous waste businesses are
performing well.
We remain focused on taking
the necessary actions to offset
these headwinds through deliver-
ing returns from our strategic
investment programme and driv-
ing operational improvements
across the group.
Dilnot said that the business had
been reorganised to align it with its
core activities, as well as deliver
synergies.
In parallel, we are accelerating
actions on improving productivity
and minimising back office costs.
Assuming market conditions do
not deteriorate further, we expect
to deliver a robust performance
this year and strong growth once
market conditions improve, he
added.
Shanks said it remained on track
for the 2012/13 financial year, with
underlying trading set to be in line
with current expectations.
AMERICAS recovery is struggling to
gain momentum according to several
pieces of economic data that disap-
pointed analysts yesterday, including
a sharp upturn in the number of new
claims for unemployment benefit.
Initial claims for state unemploy-
ment benefits increased 34,000 last
week, reaching a seasonally adjusted
386,000, the US Labor Department
revealed.
The news came after Federal Reserve
chairman Ben Bernanke told US
politicians on Tuesday that high levels
of unemployment will only fall at a
frustratingly slow rate.
And a gauge of future economic
activity, released yesterday, forecasts
that the US recovery is set to hit the
brakes. The Conference Board said its
leading economic index dropped 0.3
per cent to 95.6 after rising 0.4 per
cent in May a more severe dip than
economists had expected.
The index is pointing to no
strengthening over the next few
Poor economic
data knocks US
recovery hopes
BY JULIAN HARRIS months as the economy continues to
sail through strong headwinds domes-
tically and internationally, said the
Conference Boards Ken Goldstein.
Meanwhile factory activity in the US
mid-Atlantic region shrank for a third
straight month in July, a separate
report showed.
The Philadelphia Federal Reserve
Bank said its business activity index
rose to minus 12.9 from minus 16.6 in
June, reflecting a slower pace of
decline, but still falling short of econo-
mists forecasts.
Yet the forward-looking new orders
sub-index gained to minus 6.9 from
minus 18.8, revealing some hope that
the downturn could bottom out.
There was also mixed news for the
US housing market, as the National
Association of Realtors said that exist-
ing home sales slipped 5.4 per cent to
an annual rate of 4.37m units last
month the slowest pace in eight
months and well below analysts'
expectations. However, the median
price for a home resale rose to
$189,400, up 7.9 per cent annualised.
Spains borrowing costs climb
after disappointing bond sale
TEN-YEAR Spanish bond yields
rose above the psychologically
worrying seven per cent line
yesterday, after the country paid
euro-era record yields for five-year
funding as investors remain
concerned about its finances and
growth prospects.
Spain sold at the top of its 2bn
to 3bn target range, but
borrowing costs for two-, five- and
seven- year bonds rose across the
board.
The difference between the
BY CITY A.M. REPORTER
lowest and the average bid, or the
tail, was also seen as relatively
wide, reflecting badly on the
quality of the bidding.
Meanwhile French 10-year
government bond yields fell to a
new euro-era low after it sold
8.96bn of bonds maturing in
2015, 2016 and 2017, including
4.5bn of five-year debt at a yield
of 0.86 per cent.
The figures show that investors
are increasingly marginalising
southern economies from what
they see as the Eurozones safer
core economies.
Spain has continued to access
markets without many hiccups but
only thanks to domestic investors
and partly because it has steered
issuance towards the short end of
the curve.
After needing a bailout for its
banks, the concern is its yields
could soon become prohibitive and
force it to seek a full-blown rescue.
The risk is that yields could start
rising also in shorter maturities
where Spain is doing most of the
funding, and that will basically be
game over for Spain, said
Gianluca Ziglio, a strategist at UBS.
Fed chief Ben Bernanke has this week warned that the economy still faces hard times
ANGELA Merkel won yesterdays
key vote on an aid package for
Spanish banks with a huge
majority, suggesting that
opposition in Germany to Eurozone
bailouts is not as virulent as has
been suggested.
The vote in the Bundestag was
carried with 473 voting in favour,
compared to 97 voting against
though the dissenters included 22
from Merkels own coalition.
The rebellion meant she fell
short of the psychologically
important Chancellors Majority,
which would require 311 of her
coalitions 330 representatives to
vote with her, but broad support
from opposition parties meant she
Resounding victory for Merkel
in vote over Spanish bailout
BY BEN SOUTHWOOD
carried the day anyway.
The majority were motivated by
worries that Spanish instability
could wreak havoc on the German
economy and cause systemic
problems for the Eurozone.
Any problems in the Spanish
banking sector are a problem for
the financial stability of the
Eurozone, said German finance
minister Wolfgang Schuble.
But dissenters believed that the
generosity of the Spanish bailout
was unfair, compared to the
conditions for Greece and Portugal.
The big countries in Europe get
suitcases of money and the small
countries in Europe get an
austerity commissar, said Frank
Schffler, a backbencher in the
Free Democratic Party (FDP).
FRIDAY 20 JULY 2012
18
NEWS
cityam.com
MORTGAGE lending dived in June,
while private rents climbed for the
third month in a row, according to
data released yesterday by the
Council of Mortgage Lenders (CML)
and today by LSL property
services.
Gross mortgage lending was
down five per cent at 11.9bn,
compared to 12.5bn in May and
12.6bn in June last year, the CML
said. But the fall wasnt enough to
outweigh the previous two
months, and the second quarter
proved to be two per cent up on
the first.
Weaker mortgage lending in
June points to a more subdued
tone for the housing market in
line with that for the wider
economy, said CMLs Bob Pannell.
This came as tenants were
hammered by a third successive
monthly increase in rents, this
time of 0.9 per cent, driving rents
to 718 per month. London
tenants were hit hardest,
according to LSL property services,
with rents hitting a new high of
1,047 per month.
As if it couldnt get any more
difficult for first time buyers,
rents are still rising, undermining
how much they can put aside each
month to meet the steep deposits
lenders require, commented
Jonathan Moore, director of
easyroommate.co.uk.
Consumers hit
by housing
market woes
BY BEN SOUTHWOOD
RETAILERS were hit by bad weather
in June, as consumers bought less
food to barbecue and spent less
than expected on the Queens
Diamond Jubilee, according to data
released by the Office for National
Statistics (ONS) yesterday.
The ONSs retail sales index inched
up 0.1 per cent by volume in June,
compared to May, but slipped 0.5
per cent in value.
Sales were down 1.4 per cent by
value in the second quarter in com-
parison to the first, according to the
index, but up 1.8 per cent on the
same three months in 2011.
The wettest June on record posed
a major challenge for retailers.
These figures confirm our own
showing that there was only a mild-
boost from the Jubilee but it did
stop June being significantly worse,
said Stephen Robertson, director
general of the British Retail
Consortium.
But much of this dip was down to
falling oil prices, which gave cash-
strapped consumers a boost
Deep discounts
mitigate sharp
retail sales fall
BY BEN SOUTHWOOD
through lower fuel prices. Excluding
automotive fuel, the index for sales
by value climbed 2.9 per cent in June
compared to June last year, and
edged down just 0.1 per cent com-
pared to May.
To combat the weather, retailers
discounted heavily over the month.
They raised prices by a mere 0.3 per
cent between June 2011 and June
2012, said Daniel Solomon at the
Centre for Economics and Business
Research, Their efforts were so sub-
stantial that they contributed
noticeably to the large 0.4 percent-
age point fall in year-on-year infla-
tion in June.
Retail Sales
Jun10 Jun11 Jun12
90
95
100
105
110
115
In
d
e
x
2009=100
All retailing
Retailingexcl. automotive fuel
LENDING to businesses slumped
in May, despite decent credit
conditions, according to Bank of
England data released yesterday.
Net lending was down 1.7bn in
May, a fall that put net credit 3.1
per cent lower than the same
month last year, and 10.6bn
lower than at the end of 2008.
Borrowing by small and
medium enterprises has been
decreasing for every month since
August last year, and even then
the increase was minuscule.
The Bank puts this mainly
down to demand, arguing that
Slump in business borrowing is
due to lack of demand says Bank
BY BEN SOUTHWOOD credit conditions have hardly
changed, but some business lobby
groups disagree.
The big banks arehoarding
money rather than lending it out
to the small businesses that need
it to invest and help the UK grow
its way out of recession, claimed
John Walker, national chairman
of the Federation of Small
Businesses (FSB).
He points to FSB surveys that
found some three fifths of small
businesses wanting to expand,
and a significant minority
succeeding in appeals having
previously been told their
applications were too risky.
FRIDAY 20 JULY 2012
19
NEWS
cityam.com
Chancellor George Osborne remains keen to boost business borrowing
FRIDAY 20 JULY 2012
20
cityam.com
LONDONREPORT
Inflexion Private Equity
The private equity house has
announced the promotion of
Richard Swann from the position
of investment director to its
partnership. He joined Inflexion
in 2008, and has since led several
of its investments. Swanns
promotion follows the firms
recent appointments in Brazil,
India and China.
Coutts
Johnny Heng has been appointed managing director and
head of active advisory for Asia at the wealth division of
RBS. He has over 17 years experience in the industry and
joins from Credit Suisse, where he was most recently
managing director for ultra high net-worth individuals.
Heng has also held roles at Cornucopia Capital Partners.
DAC Beachcroft
Reg Dhanjal has been appointed as a partner in the law
firms London commercial team. He is a technology, media
and telecommunications outsourcing specialist, and joins
from Dundas & Wilson. Dhanjal also previously served as
head of commercial legal and compliance at T-Mobile UK.
ITRS
The specialist provider of monitoring technology to
financial services has appointed Mark Loader as head of
sales for the Asia-Pacific region. He joins from Thomson
Reuters, where he was global head of quantitative analytics
and datafeeds. Loader has also held senior sales roles in
Thomson Reuterss Asia team.
VAM Funds
The specialist fund manager has appointed Paul Bamber to
the position of sales manager for Asia. He most recently
worked for Scottish Mutual International as a sales
manager, and has also held senior positions at Clerical
Medical and Old Mutual. Bamber will be working alongside
Linda McLaren.
Keystone Law
Cordelia Rushby has been hired by the law firm. An
insurance specialist, she joins from Kennedys, where she
was a partner focused on personal injury litigation. Rushby
has over 20 years experience in the sector and provides
consultancy advice on risk management issues.
Halebury
The law firm has announced four new recruits to its team.
Ilana Swimer joins from Herbert Smith, where she
specialised in advising on contentious issues. Caroline Ford
joins from Damovo. She focuses on the telecoms and media
industries and has also held positions at Shell and Virgin
Media. Marissa Jones joins from Discovery Communications,
and Helen Burness joins from Hardwicke Chambers.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
Tech shares
push S&P to
10-week high
U
S stocks rose yesterday for a
third straight day, with the S&P
500 at a 2-1/2 month high, as
earnings from technology
companies and expectations for
more monetary stimulus
outweighed weak economic data.
So far in this earnings season a
majority of companies have beaten
analysts lowered expectations. In the
latest boost, IBMraised its full-year
outlook, eBay's profit beat forecasts
and Qualcomm said its expects a
strong December quarter.
Europe has been quiet and
earnings news, while not earth-
shattering, is slightly better than
expected, said Fred Dickson, chief
market strategist at D.A. Davidson &
Co. A trading range environment is
how we see it.
Weak manufacturing and
employment data as well as falling
revenue at investment bank Morgan
Stanley, which sent its shares down
more than 5 per cent, capped gains
in the wider market. The S&P
financial index fell 1 per cent.
Even so, expectations that the
Federal Reserve will soon step up
stimulus efforts have helped the
market shake off bad news. Fed
Chairman Ben Bernanke said this
week that the U.S. central bank
would act if the outlook worsened.
The Dow Jones industrial average
gained 34.66 points, or 0.27 per cent,
to 12,943.36. The Standard & Poor's
500 Index rose 3.73 points, or 0.27
per cent, to 1,376.51. The Nasdaq
Composite Index added 23.30 points,
or 0.79 per cent, to 2,965.90.
But despite the Nasdaqs out-
performance compared with the
other indexes, decliners in the index
beat advancers by a ratio of more
than 5 to 4. Investors like to see
advancers beating decliners by a
wide margin to confirm market
strength.
The S&P is at its highest level since
early May. Some investors are
pointing to a trading range between
recent highs above 1,400 and a low in
June around 1,280.
People are focusing on individual
stocks after earnings and trying to
figure out (through) outlooks how
weak the economy really is, said Giri
Cherukuri, head trader at OakBrook
Investments.
It is baked into stock prices that
growth is going to be slow for a little
while, he said.
Manufacturing in the US mid-
Atlantic region shrank for a third
month and home resales were lower
than forecast. That came shortly after
a report showed more Americans
applied for unemployment insurance
in the latest week.
IBM shares jumped 3.8 per cent to
$195.34, making it the largest boost to
the Dow industrials a day after it
raised its full-year profit forecast.
Semiconductor company Qualcomm
cut its revenue and earnings forecast
for the current quarter, but investors
took heart as it said sales would
improve for a strong last quarter.
B
RITAINS top share index edged
higher yesterday helped by a
bounce in several heavyweight
banking stocks.
But the London Stock Echange gath-
ered the most attention, with a late
surge before the close sparked by specu-
lation of a potential tie-up with its
Singaporean counterpart.
The talk follows the LSEs recently
announced joint venture with the
Singapore Exchange enabling cross
trading of its largest securities.
Market rumours suggested a takeover
price of around 13.50 per share. The
British bourses shares surged to 1,028p
before finally closing up 21p at 1,023p.
The LSE refused to comment.
Meanwhile, after falling 2.5 per cent
in the previous three sessions to near a
technically oversold level, HSBC, in
focus during a US Senate hearing on
money laundering that some analysts
said could result in a $1bn fine, rose 0.6
per cent.
Fellow Asian-focused peer Standard
Chartered led sector gainers, however,
with a gain of 2.3 per cent.
Banks are recovering from a few dif-
ficult trading sessions regarding the
issues with Libor and HSBC more
recently, said Michael Symonds, a
strategist at Daiwa Capital Markets.
The cyclical sector led the market
higher, adding a total of 8.7 points to
the broader FTSE 100, which ended up
0.5 per cent, or 28.42 points, at 5,714.19
points.
The index had struggled to breach
and hold above 5,700 points during the
last two weeks and in spite of doing so
yesterday, Dmytro Bondar, a technical
analyst at RBS, cautioned of the poten-
tial for a marked slide in the coming
days.
It has been in this upper-sloping
bearish channel since the beginning of
June ... What is important is that it
stays within the channel as once the
price falls below the lower limit and we
get a few negative days, it could be a
trigger for a major sell-off, he said.
In spite of the market gains, volumes
were low at just 79 per cent of the
already weak 90-day daily average.
Miners added their weight to the
index gains and continued a recent
recovery, led by Rio Tinto, up 1.7 per
cent and BHP Billiton, up 1.4 per cent,
helped by gains across the base metals
complex on hopes for fresh China stim-
ulus.
Miners are doing well because cop-
per has had a very good run today,
thats mainly based on hopes of more
easing in China over the weekend,
said Ioan Smith, a strategist at Knight
Capital.
Emerging markets were a key factor
dragging the worst-hit sector, integrat-
ed oils, lower after gas firm BG Group,
down 2.1 per cent, was hit by a Credit
Suisse downgrade to neutral from
outperform on the back of produc-
tion headwinds in Brazil.
The biggest drag on the index, howev-
er, was telecommunications company
Vodafone, which saw a sharp drop in
its share price towards the end of the
session after hopes for a special divi-
dend from its US joint venture
dimmed. The fall came after a Verizon
executive said that the distribution of a
dividend payment to Vodafone from
their joint Verizon Wireless venture
would not be discussed the firm's next
quarterly board meeting.
Vodafone stock, which had been bid
up in anticipation of the dividend, fell
1.2 per cent in heavy volume of more
than one and a half times its 90-day
daily average.
London Stock Exchange surges as
speculation over merger circulates
BESTof theBROKERS
Next PLC
13Jul 17Jul 18Jul 19Jul 16Jul
p 3,300
3,280
3,260
3,240
3,200
3,220
3,180
3,237.00
19 Jul
NEXT
UBS has maintained its buy rating on the stock but upped its target
price from 3,250p to 3,500p, saying it expects Next to have escaped the
worst impact of the weather in its second quarter. The broker also says
the popular Directory business may have benefited from the bad
weather, and has nudged its sales projections for the first half up from 11
per cent to 11.5 per cent.
FTSE
13Jul 16Jul 17Jul 18Jul 19Jul
5,720
5,700
5,680
5,660
5,640
5,620
5,714.19
19Jul
DASHBOARD CITY
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
NEW YORK
REPORT
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
in association with
Aberdeen Private Equity Fund Ltd
13Jul 17Jul 18Jul 19Jul 16Jul
p 66.75
66.50
66.25
66.00
65.75
65.50
66.75
19 Jul
ABERDEEN PRIVATE EQUITY FUND
Liberum Capital has upgraded the fund from hold to buy, saying it
continues to demonstrate impressive growth in net asset value (NAV),
which the broker says is reflective of a maturing portfolio and NAV
accretive share buybacks. Liberum says the managers approach
adopting a proprietary and very systematic approach to fund selection
and actively considering risk differentiates the fund from its peers.
Bellway PLC
13Jul 17Jul 18Jul 19Jul 16Jul
p 865
860
855
850
840
845
835
844.00
19 Jul
BELLWAY
Shore Capital has downgraded the housebuilder from buy to hold
following a strong recent share price performance that has seen the
company narrow its discount to last reported net asset value at which its
shares trade. The broker also says that Bellways relatively short land
bank should enhance its return on capital, as well as providing relative
protection in the event of a downturn.
FRIDAY 20 JULY 2012
LONDONTIME
21
Edited by Timothy Barber
cityam.com
11 pages of the best
sports watches on Earth
FAST
TIMES
Bubba Watson: golf genius,
watch nerd. Interview: P.29
Timing the Olympics:
Omegas big 2 weeks P.23
Usain Bolts
winning watch P.24
www.baume-et-mercier.co.uk
THE VILLAGE, WESTFIELD LONDON
SELFRIDGES WONDER ROOM, OXFORD STREET, LONDON
WWW.THEWATCHGALLERY.CO.UK/BAUME
annual competitions to prove their
chronometric excellence. In the
days when Omega first timed the
Games at Los Angeles in 1932, it was
simply required to supply 30 high
precision chronograph stopwatches,
with results certified at fifths and
tenths of a second. It must have
been a success at the next games
in Berlin in 1936, 185 chrono-
graphs were brought from Omegas
HQ in Bienne in a single suitcase.
TIGHT FINISHES
By contrast, London 2012 will see
Omega bring a team of 326 people
operating the most advanced tim-
ing systems ever invented. Where
Jesse Owens was still digging start-
ing holes in the sandy track in 1936,
today starting blocks and swim-
mers launch pads are wired to
respond to any false starts, while
photo finishes can be determined to
1/10,000th of a second. For swim-
mers, touch pads at the end of the
pool must withstand the pressure of
waves created in the water, but
respond to the very first microsec-
ond of touch from a finishing com-
petitor.
Woe betide the swimmer
in a tight finish who looks
up to see his time as he fin-
ishes, or miss-times his
final push and glides to the
pad rather than stroking,
head-down, straight to it.
Such was the case when
Michael Phelps beat Serbias
Milorad Cavic in the 100m but-
terfly in 2008 Cavic lost out
by a fraction of a second.
If visiting the Olympic park, a
sense of technological progres-
sion in sports timing can be
gleaned from an exhibition of old
timing equipment hosted in
Omegas large boutique at
Westfield Stratford. The strange,
retro-sci fi machines with names
like Swim--matic and ScanOVision
chart a passage not just of scientific
advancement but rather satisfying
design evolution as well.
O
NE thing we know about
the modern Olympic
athlete is how far
training regimes have
come since the days of jogging
along the beach to a Vangelis
soundtrack. The science and tech
involved is at the cutting edge,
from the analysis of physical
performance to training in wind
tunnels and sleeping in oxygen
tents.
If the science of sporting perform-
ance has come a long way, the sci-
ence of sports timing has done ten
Omega Seamaster Aqua Terra
Co-Axial Chronograph
London 2012
Long name, corking watch. In
honour of London 2012 Omega has
brought out a special model in its
celebrated Seamaster line. First
introduced in 1947, the Seamaster
ostensibly its diving watch range, but
one that has taken a multitude of forms
over the years, from ultra-rugged action
pieces to refined dress watches
represents one cornerstone of Omegas
sporting DNA (the other being the
Speedmaster).
The Olympic watch falls under the Aqua
Terra range of Seamasters, notable for the
elegant striped lines that pattern the PVD-
coated dial. A chronograph with a 30-minute
and 12-hour timing subdials, its movement
contains the Co-Axial escapement system
Omega has developed in-house which
enables less wear-and-tear and greater
accuracy, and is one of the finest horological
mechanisms around. The back of the watch is
engraved with the London 2012 logo.
4,860 www.omegawatches.com
Olympic timing has come a long way from the days of people holding stopwatches.
23
LONDONTIME
cityam.com
FRIDAY 20 JULY 2012
laps of the track and a marathon to
boot. The imminent Olympic Games
here in London marks the 25th time
the Swiss watch brand Omega has
been responsible for timing the
competitions. The importance of the
job cant be underestimated races
will be won and world records set by
the smallest increments, and from
that reputations and fortunes made
or ruined.
No wonder, then, that the job
should have historically fallen to
watch companies, who in the pre-
quartz era would participate in
TIMING
Omega has its eye on the photo finishes, writes Timothy Barber
The London 2012 watch
Photo finish machines
developed by Omega
and used at Olympic
games in (from top)
1952, 1968, 1972 and
1992 .
t
h
e
GAMES
T
HE great fashion and luxury house
Louis Vuitton is becoming an ever
growing force if a relatively niche
one in watchmaking. Its models,
all based around a highly recogniseable
tambour meaning drum shape,
frequently exhibit something of a
nautical theme thanks to the brands
longterm involvement in the Americas
Cup.
As it happens, watches for sailing regattas
occupy their own little space in the sports
watch firmament. What marks them out is a
display for counting down the final minutes
before the start of the race, normally marking
off ten minutes before start time by coloured
sections. Louis Vuittons latest piece, the
Tambour Regatta Americas Cup Automatic
(pictured left), however, has a five-minute
countdown to account for new rules in the
grand competition. A flyback chronograph
with black rubber moulded over its steel case
and 42 hour power reserve, it is limited to 720
pieces. 6,600 www.louisvuitton.com
Louis Vuitton has sponsored the Americas Cup for the past 35 years.
If youre one of the worlds greatest athletes, youre going to need
FRIDAY 20 JULY 2012
24
LONDONTIME
cityam.com
TAG Heuer Formula 1 steel &
ceramic with diamonds
She may have faltered at Wimbledon,
but in the world of modern ladies
tennis Sharapova has shown rare
staying power, and will be looking to
set things straight at the Olympics
tournament. Her watch mixes elegance
with strength (its ceramic bezel) and fine-
tuned precision much like its wearer. 1,725
www.tagheuer.com
Hublot King Power Usain Bolt
The fastest man on Earth is one
of the sporting worlds great
showmen, so no wonder he
should plump for Hublot, one of
the showiest brands out there.
Just in time for the Games,
Hublot has brought out this
limited edition chrono in Bolts
honour. A chunky 48mm beast of
a watch in Hublots extrovert King
Power style, it bears the gold and
green tones of the Jamaican flag, and
Bolt in his customary pointing pose on
the seconds dial. 14,430
www.hublot.com
Royal Oak Offshore 44mm
The Little Master has found a
good match for his mixture of
swell style and virtuosic
brilliance with Audemars
Piguet. Youll find him
wearing this boldly
luxurious Royal Oak
Offshore. 44,170
www.audemar-
piguet.com
As sported by superstars
MARIA
SHARAPOVA
USAIN
BOLT
RAFAEL
NADAL
BEN
AINSLEY
a timepiece to match
Richard Mille RM027
Despite a highly complex tourbillon movement,
the watch created for Spains tennis ace by
Richard Mille, the Swiss master of futuristic
horology, is quite astonishingly light a mere
20 grams. What feels like a bit of cheap
plastic is in fact constructed from super-
tough alloys and carbon nanofibre, meaning
it can withstand the force of being whipped
around on Nadals wrist during matches. At
424,000 its a toy for billionaires, but the
merely super-rich can pick up the
slightly-less-featherweight RM035
version for a mere 68,000.
www.richardmille.com
Louis Vuitton sets sail for glory
G
E
T
T
Y
SACHIN
TENDULKAR
Corum Admirals Cup
Seafender 48 Chrono
Centro
Corums emblematic 12-sided
watches are named after the
Admirals Cup regatta, so no
surprises that our greatest
sailor and three-time gold
medallist wears one. The
Centro is a typically tough
chronograph thats made for
action. 6,800
www.corum.com
AVIATION BR 03-92 Automatic
VINTAGE BR 126 Chronograph
Bell & Ross UK +44 207 096 0878
.
information@bellross.com .
e-Boutique: www.bellross.com
D
EFAULT watch purchases
used to fall into
categories: dress watch,
sport watch and work
watch. There were numerous choices
within those groupings, but few
mattered. If you were looking at the
quality sector only three or four
brands counted. What they had in
common were quality, reputation and
important for some exclusivity.
All that changed with the watch
revolution, the late-1980s backlash
against quartz watches that made
mechanical watches desirable again.
Surviving brands from the pre-
quartz era were suddenly hot again.
Every thrusting overachiever wanted
a Rolex, a Patek Philippe, an
Audemars Piguet, a Cartier or a
Vacheron Constantin, while all-but-
forgotten brands became inspired.
Girard-Perregaux, Blancpain,
Breguet, Ulysse Nardin and a few
hundred others awoke from their
slumbers.
Something that all of them
learned was how the new breed
of watch connoisseur want-
ed big and bold, if not
necessarily bling. Such
virtues were previously
the sole province of
sporting watches. But
now sports watch pro-
portions were influenc-
ing non-sporting watches,
with sizes increasing from
the median 34mm for a
normal mans watch to
38mm-40mm or more.
RUGGED, WATER-RESISTANT
The poster child for this
was Panerai, followed
closely by specific models
including the Audemars
Piguet Royal Oak, Patek
Philippes Nautilus [pictured above] and
more butch Rolexes.
Panerai expanded the watch lan-
guage in the mid-1990s by being every-
thing contrary to tradition, despite its
birth taking place in 1936; the 1990s
watches were reissues of old designs.
They were created for the Italian
Navys saboteurs, but by necessity
were among the earliest of the truly
rugged, genuinely water-resistant
timepieces.
Panerais, military origins or not,
were the essence of sport watches, in
the way that the Jeep, also designed
wholly for the military, became the
template for all SUVs that followed,
notably its most blatant copycat, the
Land Rover.
While one could also posit that
Jaeger-LeCoultres Reverso [see box, right]
was designed purely for sport to pro-
tect a watchs crystal while its wearer
played polo most shock-resistant
watches could arguably survive the
rigours of sport. The true arbiter, given
that shock resistance was becoming
the norm after World War II, was
immunity to the ingress of moisture,
an essential in any a diving watch.
As much as diving, sailing, swim-
ming and other water-based activities
are not the only sports in which man
indulges, and are no more in need of
accurate timing than dry sports, they
do represent a worst-case scenario. A
diving watch failing while the tanks
slowly run out of oxygen can lead to a
fatality. Reading the time under water
requires superior legibility. Greater
depths require stronger cases.
None of these apply to
land or air sports, so
diving watches (civil-
ian or military) make
the best sport watch-
es.
WATERSHED
Prior to the 1940s,
few watches, includ-
ing the robust
Panerais, could
boast near-total
shock resistance,
and the materi-
als and lubricants
we now take for
granted did not even
exist 70 years ago. The
watershed year, if youll for-
give the pun, was 1953,
when both Rolex and
Blancpain simultaneously cre-
ated what would be the defini-
tive layout for diving, and
therefore sport watches.
Rolexs Submariner and
Blancpains Fifty Fathoms both high-
lighted water resistance, superlative
legibility and rotating bezels for indi-
cating the time remaining in a dive.
Both would serve military purposes.
Both are still in production today, near-
ly 60 years after their debuts. And both
have inspired the majority of watches
able to withstand submersion.
Two decades after the Submariner
and the Fifty Fathoms appeared,
Audemars Piguet, followed by Patek
Philippe, changed the rules for sport
watches. APs Royal Oak and Pateks
Nautilus, both designed by the same
man, Gerald Genta, abandoned the
pure functionality of watches like the
Submariner and the Fifty Fathoms,
where suitability for purpose defined
every detail, in favour of watches that
Its not just a beautiful shop,
its a tipping point. That was
the verdict of one connoisseur I
spoke to at the opening this week of
the first ever boutique by the British
watch company, Bremont. A decade
on from the moment brothers Nick
and Giles English had the barmy
idea of founding a luxury watch
brand in a country whose industry
for such things had ceased to exist
decades before, Bremont has not
only proved an unlikely and
forthright success, but is in the
process of shifting up gears.
A week ago saw the launch of the
Bremont Victory, a superior piece of
complicated, classical horology that
contains tiny amounts of wood from
Lord Nelsons ship, HMS Victory. It
was unveiled aboard the ship itself,
in conjunction with the Royal Naval
Museum in Portsmouth, and marks
a step up for the brand in terms of
pure, untrammeled luxury and
craftsmanship. Meanwhile, the new
boutique on South Audley street is a
stylish world of gentlemanly
pursuits: it includes a suave bar and
library area, burnished pieces of
military and sporting paraphernalia
and even a Triumph motorcycle, as
well as vitrines containing
Bremonts formidable watches.
Wedged neatly between Harrys
Bar and the George Club on South
Audley Street (just off the end of
Mount Street), it could itself become
something of a stopping-off point for
sophisticated folk in the area. Expect
a generous welcome from the
brothers English if youre passing.
29 South Audley St, W1K 2PE
www.bremont.com
TIMOTHY BARBER
The new Bremont boutique on South Audley Street in Mayfair
FRIDAY 20 JULY 2012
26
LONDONTIME
cityam.com
English brands oh-so-English new HQ
An equestrian classic
Its now an ubiquitous smart
watch, but Jaeger-LeCoultres
famous Reverso is one of the
earliest examples of watches
made with sports in mind.
First launched in 1931, its stroke
of genius was the way it could be
slid to the side and flipped over
ostensibly to protect the dial from
flailing mallets during polo
matches. You could argue that
you may as well just leave it off,
but its horsey associations and
the fact that the flippable reverse
side was ideal for engraving coats
of arms and other motifs made
it a hit with high society, and so it
has remained.
Its link to equestrian sports is
today maintained by Australian
show jumper Edwina Tops-
Alexander, the top-ranked female
in her sport, who will be going for
gold in London next month.
Pictured top: Lady Reverso,
5,350 www.jaegerlecoultre.com
would survive a round of golf or a
chukka while looking good with a din-
ner jacket.
True, the Nautilus and the Royal Oak
may seem like Wayne Rooney in a suit,
but thats OK: underneath, they do all
that a sports watch should.
GLOSS PLUS FUNCTIONALITY
Today, the market bristles with the
benefactors of their adding of gloss to
functionality. Hublots Big Bang, most
Richard Mille models, Breitling
Bentleys, various Corums and other
slick sport/dress watches vie
for your attention with the
unabashedly sporting IWC
Aquatimer, Omega Seamaster,
various TAG-Heuers, diving
models from Longines and
Hamilton, a host of Jaeger-
LeCoultre sport models and so
many others that youre
spoiled for choice. But its
always worth remembering, if
the choice is all-too-overwhelm-
ing: when the going gets tough,
the tough don Rolexes.
Modern sports watches take their cues from a handful of game-changing older pieces, writes Ken Kessler
Tough, functional, stylish
A Panerai from the 1940s: the first truly rugged, water-resistant timepieces.
TB
To arrange a private viewing please call 020 7290 6500 www.marcuswatches.co.uk
170 New Bond Street, London W1S 4RB
UNIQUE MASTERPIECES
10TH ANNIVERSARY EXHIBITION
4th July 2nd October 2012
*

E
x
a
c
t

a
n
d

E
x
u
l
t
a
n
t
.
MESURE ET DMESURE
*
TONDA 1950
Rose gold
Ultra-thin automatic movement
Herms alligator strap
Made in Switzerland
www.parmigiani.ch
LONDON HARRODS - ARIJE - ASPREY | YORK HARPERS | CHELTENHAM BEARDS
I
TS one of the great golf shots
in recent memory. Bubba
Watson, on hole two of a
sudden death play-off for the
US Masters in April this year, finds
himself lost in pine trees off the tee.
He hits an almighty hook shot that
loops out of the trees, turns right and
lands 10 feet from the hole. From
there, its an easy two-
putt to victory.
I grew up shap-
ing the ball in a
lot of different
ways, and play-
ing with bud-
dies that shot
was no big
deal, Watson
says when we
sit down at the
house hes rent-
ing near Royal Lytham and St Annes
for this weeks Open. But in that situ-
ation, with that much pressure and
all those people around, I guess you
could call it amazing.
I guess you could. Many people have
called it a lot more a wonder shot,
the shot of a lifetime. For 33-year-old
Watson it brought not only the green
jacket but validation in the golf world
that he was more than the goofy guy
from Bagdad, Florida called Bubba
(as he happily describes himself) with
an Exocet tee shot. He was a world-
class talent who had come of age.
It will have been a sweet moment
also for Richard Mille, the Frenchman
whose ultra-high-end watch brand
created a remarkable timepiece for
Watson: a futuristic white tourbillon,
the RM038, thats as light as a feather
and as strong as an armoured car.
SELF-TAUGHT
If Watson, a self-taught, shaggy-haired
lefty, is something of an anomaly in
the golf world, hes even more unusu-
al in the refined domain of luxury
watches. He cheerfully played up to
his hick image in Golf Boys, the spoof
boy band he formed for charity with a
trio of other young players in their
video Watson raps and dances shirt-
less in dungarees. He recently made
headlines too for buying the original
General Lee car from the Dukes of
Hazzard in an auction.
But Mille has a penchant for being a
FRIDAY 20 JULY 2012
29
LONDONTIME
cityam.com
few steps ahead of the pack he invit-
ed Rafael Nadal to wear his watches
[see page 18] when the Spaniard was
still coming up through the ranks. In
Watsons booming swing hes the
PGA tours longest hitter Mille spied
a challenge. After all, most golfers
dont wear watches: for one, theyre an
encumbrance, and if theyre mechani-
cal the G-forces involved with a golf
swing will gradually wreck the inter-
nal workings.
He said it was the challenge to
make a watch stand up to the speed
and impact of my swing, Watson
explains. I can swing it at 125mph
and it still works, and its so light and
comfortable you dont even know
youre wearing it.
Thats all down to complex magne-
sium alloy materials and front-line
engineering that add up to a cost of
389,000 if you want to own one.
Though the newly-released, non-tour-
billon RM055 Baby Bubba comes in
at a mere 69,000.
Its one more element that marks
Watson out as different to the other
players. In the clean-cut, monotone
ranks of PGA pros, the guy with a
white magnesium-alloy watch and
bright pink driver (which he wields to
raise money for charity) is a breath of
fresh air. But hes also a player you
can root for a mercurial character
with admitted weaknesses.
Ive got issues in my head! he
jokes. My mind wanders theres so
many shots Im thinking of and
calming down is always my struggle. I
have to grow up in that part of the
game.
Whether Watson can tailor his big-
hitting style to links golf this week
well find out over the weekend,
though he was in good shape for a -3
score yesterday. Dont bet against
another major win coming soon.
Rolex
In the bag: Luke Donald, Tiger Woods,
Phil Mickleson, Paul Casey, Ricky Fowler,
Martin Kaymer, the Big Three
Tour highlights: Still the undisputed king
of golf, Rolex recently announced a
10-year extension to its long-running
association with The Open
Championship and the R&A
Spike bar: Rolex signed former TAG
Heuer ambassador Tiger Woods last
autumn, much to the surprise of many
observers, but the brands faith has
been rewarded Tiger has climbed
back up to fourth in the world
rankings from a low of 58 last
November.
The watch: Day Date II in gold,
23,300 www.rolex.com
Omega
In the bag: Greg Norman, Sergio Garcia,
Davis Love III, PGA of America
Tour highlights: Omega is title sponsor of
the European Masters at Crans-
Montana in Switzerland and the Dubai
Desert Classic. In 2011, it became
the official timekeeper and
partner of the PGA of America.
Spike bar: In September Omega
will sponsor the Ryder Cup for the
first time, at Chicagos Medinah
Country Club where you can expect
to see USA team captain Davis Love
III sporting Omegas new Captains
Watch.
The watch: Seamaster Aqua Terra
Chronometer PGA
3,490 www.omegawatches.com
Audemars Piguet
In the bag: Rory McIlroy, Lee Westwood,
Darren Clarke, Graeme McDowell, Ian
Poulter
Tour highlights: It seems AP has it
sights set on Rolexs golf crown,
with McIlroy leading the charge.
Spike bar: If you had a dry eye
with which to watch Darren
Clarkes Open win last year, you
may have noticed the Royal Oak
titanium prototype watch he
sported as he sobbed through
interviews. AP will be looking for
more success from McIlroy et al.
The watch: Royal Oak Offshore Arnold
Schwarzenegger The Legacy (favoured
by Lee Westwood). 34,070
www.audemarspiguet.com
Other watches the worlds best wear on the greens
US Masters champ Bubba Watson tells Timothy Barber why hes different to other golfers
IVE GOT
by Robin Swithinbank
Murat is one of the
more unusual in his
sport. His technique is
based around mammalian dive
reflex, which is seen in animals like
seals, otters and penguins.
Whales, reptiles, birds, they all
exhale when they dive, so I started
looking at the science of this, he says
of his system, which reduces his heart
rate to 35 beats per minute. Ive never
had a blackout or experienced narcos-
sis, and since Im carrying so little gas,
theres much less risk of decompres-
sion, which is otherwise a problem.
Of the orthodox methods he adds: to
hell with the rules Im big on reality,
not artificial rules!
www.mauricelacroix.com
I
TS dark side of the moon stuff, its
like exploration. So says Sebastien
Murat, the free-diver, of life at the
bottom of an ultra-deep plunge
into the void. Theres no one down
there with me, and the idea of
actually having air is really completely
foreign.
Murat, a 43-year-old Australian, now
lives in a tiny Swedish fishing village
on the Baltic where hell spend as
much as six hours a day under water.
We meet in Antibes, where he is pur-
suing the world record free-dive
depth, which is set at the 240m mark.
To put that in context, the new Heron
Tower on Bishopsgate is 230m high
and Murat goes down and up that far
on a single breath. Or so free-div-
ing orthodoxy would go but in
fact, Murat does it on almost no
breath at all. His techniques are
overturning long-held assump-
tions in the sport.
Most free divers talk about
their extraordinary lung capacity
that they look to expand with
strong respiratory muscles. I
decided to breathe out instead I
was sacrificing my oxygen stores
by exhaling, but I found I could
hold my breath more or less the
same, and as soon as I did it I sank
like a stone.
FRESH DIRECTION
Murats pursuit of the world record is
being supported by Swiss watch brand
Maurice Lacroix, which this year
released its most interesting, genuine-
ly sporty dive watch, the Pontos S
(2,950, right). It represents something
of a fresh direction for the mid-price
brand, with its rugged design and
breezy flashes of colour. Its a clever
design too where normal diving
watches have a rotating bezel to mark
off time left in an oxygen tank, the
Pontos S has a rotating ring sealed
inside the case, operated by a crown
integrated with the top chronograph
pusher.
Diving deepinto the void
Maurice Lacroix is
supporting a novel
attempt on the
free-diving world
record, writes
Timothy Barber
TAKE a walk down New Bond
Street and youll tend to see people
gawping at the window displays at num-
ber 170. Is that a watch? theyll be
asking. What the hell are these?
What they are are some of the
rarest, most remarkable and most
perfectly made watches on Earth, mostly
from independent brands specialising in
spectacularly complicated watches for
collectors willing to lay down tens, if not
hundreds, of thousands of pounds.
Its a decade since Marcus Margulies,
whose company also owns the maker of
low-end watches Sekonda, opened his
boutique and labour of love, simply
called Marcus. To celebrate, the shop is
hosting an open-to-all exhibition of rare
wonders thats running throughout the
summer. Special pieces have been creat-
ed for the exhibition by connoisseur
brands like Greubel Forsey (watch pic-
tured left), Urwerk and Franck Muller.
Also on display is Marcuss personal
collection of vintage, pre-1972 Audemars
Piguet watches, one of the finest such
collections in the world.
Marcus himself is lionised by the Swiss
industry for his encouragement and
influence as it emerged from the dol-
drums of the 1970s and 1980s.
We want to show people whats possi-
ble with watches, stretching the bound-
aries of horology, he says.
Marcus, 170 New Bond St, W1S 4NG.
www.marcuswatches.co.uk
FRIDAY 20 JULY 2012
30
LONDONTIME
cityam.com
Sebastien Murat is
aiming to break the
free-diving world
record.
Rolex Sea-Dweller Deepsea
When it comes to water resistance and endurance,
Rolex really has no peers. In 1960 an
experimental watch, the Deep Sea Special, was
strapped to the outside of the US Navys
bathyscape Trieste as it descended
10,916m to the bottom of the
Mariana Trench, then the
deepest known point in the
ocean. Filmmaker James
Cameron recently went even
further, descending seven miles
with a new prototype version of
the DeepSea beating away on his
subs manipulator arm. The normal
Deepsea model, loaded with top-
notch Rolex tech, is designed to be
water resistant to 12,000m even
if no diver will ever be. 8,050
www.rolex.com
Bell & Ross BR02-92 Blue
The stylish French brand Bell & Ross
is better known for square-form
aviation watches, but its BR02
diving watches are some of
the more formidable pieces
around. In a streamlined
tonneau case of pvd-coated
steel, the watch is water
resistant to 1,000m. It
includes a decompression
valve and rotating inner
bezel, operated by a
separate winding crown.
There are different dials to
choose from, but this
luminescent blue version will
be visible in the deepest
gloom. 2,600
www.bellross.com
Watches to take to the ocean floor
Marcuss timely exhibition
B
ATMAN and Barack Obama
are conspiring to put private
equity under a Bat Signal-
shaped spotlight this week.
The unlikely duo have come
together thanks to the similarity
between Bane the name of the
villain in The Dark Knight Rises (see
our review on page 35) and the
Obama re-election campaigns attack
against Republican Mitt Romneys
career at Bain Capital.
Already there is a Twitter account
for @BaneCapital, which claims to be
Gothams reckoning, and also a
leading private equity firm,
delivering industry-leading returns
for our investors. One paranoid talk
show host decided that the whole
thing is a deliberate plan to bring
N
EW research into the success
of Formula One teams shows
that a leaders genuine
expertise in a companys core
business really matters.
Being a capable general manager
alone is not sufficient.
This is a hot topic there is recent
evidence that major firms have
moved away from hiring chief execu-
tives with technical expertise,
towards hiring leaders who are gener-
alists. 50 years ago, as society
switched from family-owned busi-
nesses and employment through enti-
tlement to a more meritocratic and
efficient approach to enterprise, good
management was crucial as it still is
today. But the pendulum may have
swung too far towards general man-
agement functions and away from
core business functions.
Although we admire entrepreneurs,
scientists, engineers, artists, and oth-
ers with ideas, we typically assume
that theyre no good at actually run-
ning a business of any real size. I have
found these assumptions to be
wrong. For example, in professional
in association with category sponsors venue sponsor champagne reception sponsor
Are you one of the citys top businesses of the year?
Visit: www.cityamawards.com to enter the City A.M. Awards 2012.
Extended deadline: 20 July
Last day to register.
cityam.com/forum
Hands-on experts
have a deep intuition
and wisdom that helps
inform decision-making
In association with
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.

32
FRIDAY 20 JULY 2012
AMANDA H. GOODALL
Formula One shows real experts
should be driving our companies
basketball, we found that teams that
win the most are led by former star
players. Managers with no medical
training run hospitals in the US and
the UK, yet the most outstanding hos-
pitals in the US are led by chief execu-
tives who are doctors. Similarly, the
most successful universities in the
world are led by presidents who are
also highly respected academics.
My most recent study, with co-
author Ganna Pogrebna from
Sheffield University, looks at one of
the worlds most competitive high-
technology sectors Formula One.
Our study collects and analyses 60
years of Formula One data, from
which each organisations perform-
ance can be measured objectively. We
find that the most successful team
leaders are more likely to have start-
ed their careers as drivers or mechan-
ics, compared with professional
managers or engineers with degrees.
We find a notable association
between driving and later success as
a leader. Within the sub-sample of
former drivers, those with the
longest driving careers go on to be
the most successful leaders.
Prominent examples include former
top drivers like Jean Todt of Ferrari,
and comparative newcomers like Red
Bulls leader, ex-driver Christian
Horner.
So why might experts, like former
drivers, make better leaders?
We believe that hands-on experts
have a deep intuition and wisdom
that helps inform their decision-mak-
ing. The understanding that expert
leaders have of a core business gives
them better strategic vision, helping
them to identify more business
opportunities and challenges. Having
been on the floor, they know how to
create the right work environment
and command greater respect. The
long period of training and on-the-job
experience required of experts may
endow them with a longer view, both
towards success and towards income
and profit generation. And as leaders
in a specific field, experts are a model
of excellence, inspiring the people
who work for them to go above and
beyond in their own quest for quality.
The top team at Google all have
degrees in computer science, which
explains why Yahoo has just chosen
one of them, Marissa Mayer, to be its
new chief executive. We all admire
German cars. These firms perform
well because their engineers are on
the shop floor and in the boardroom.
Debates are common between sports
enthusiasts about whether the coach
of their beloved football team should
have been a good player. Vicente del
Bosque, Spains current manager,
used to be a brilliant midfielder for
Real Madrid.
Lets be clear: to be an expert leader
you also have to be an expert manag-
er. But were accustomed to seeing
Fortune 500 firms choosing charis-
matic general managers for senior
leadership positions over core busi-
ness experts. Were also used to see-
ing chief executives flit back and
forth across industries, becoming
jacks-of-all-trades, masters of none.
Might our organisations be paying
the price?
If we want to boost our economies
and our companies through innova-
tion and entrepreneurship we need
more specialists and fewer generalists
running the show real experts not
managers.
Amanda H. Goodall is a visiting fellow at
Cass Business School and senior research
fellow at IZA Institute for the Study of
Labor in Bonn.
www.amandagoodall.com
amanda@amandagoodall.com
down the Republican challenger.
Its not, of course. But its
unfortunate for the reputation of a
valuable sector. As TheCityUK
announced yesterday, in its annual
report on PE, London remains the
worlds second-biggest private equity
centre after the US, having invested
200bn in 28,000 firms over the last
20 years. This is money that has
helped to provide early funding to
startups, distressed firms and others,
while earning returns for
institutional investors, including
many pension funds.
Its a neat gag to pretend that
private equity and Batmans latest
nemesis are one and the same, but
its also a cheap one. Wit has to have
truth in it, and the truth is that
private equity has more in common
with the Dark Knights hero. Not just
because Bruce Wayne is a billionaire,
who invests his money in companies
that produce amazing new
technologies, nor even because his
achievements are so misunderstood
that he begins the latest film in exile
and disgrace. The essence they share
is a willingness to make tough
decisions when it matters.
It is easy to stand back and say jobs
should be saved, wages should be
higher and long-standing companies
should be kept going. Just as in
Gotham City it is always easy to say
that the cancer of villainy should be
cut out, but that no surgeon should
wield a knife to do so.
But the people who matter are not
the ones who stand on the sidelines
and complain that both sides cant
win at once. It is those with the
courage to get stuck in when the
chips are down, whether to turn
around a struggling firm or face
down the forces of chaos.
There is another movie villain who
actually works in PE, Larry the
Liquidator in Other Peoples Money.
Hes supposed to be a bad guy, an
asset-stripper and a corporate raider,
yet his speech in his own defence is
an honest rebuke to those without
the moral courage to listen to his
hard-headed advice: You invested in
a business, and this business is dead.
Lets have the intelligence lets have
the decency to sign the death
certificate, collect the insurance, and
invest in something with a future.
Private equity isnt a bane on
Gotham or any other city. Nor is
Batman. There may be certain walks
of life that will never be looked on in
a kindly light by the public, but that
doesnt make their work
dishonourable. As the Dark Knight
demonstrates, quite the reverse.
Marc Sidwell is managing editor at
City A.M.
THE LONG
VIEW
MARC SIDWELL
The Batman of business: Private equity has the guts to do the dirty work
General enquires: 020 8267 4043 | jo.pead@cityamawards.com | Awards night: Wednesday 17 October.
33
Let Heathrow fly
[Re: We need supply-side reforms not more
off-balance sheet spending, yesterday]
This is an excellent article. If only the
government would take notice and read it.
Infrastructure is vital to economic growth
but, as is made clear here, experience has
proven that the private sector is more
capable at providing it than the public
sector. Why wont the government let the
private sector build a third runway at
Heathrow? There would be no downside
risk to the taxpayer, either on the
governments balance sheet or off of it. All
the government must do is remove
unnecessary regulations and planning laws.
If such a project were to fail, it would fail
and private firms would take the hit.
SteveOkare
Growth strategies
[Re: Britains economy: a case of lies, damn
lies and statistics, yesterday]
An ever-increasing amount of Britains work
is unproductive. Businesses must cope with
constant new regulations and tax changes.
And things have become worse under the
coalition, despite promises to the contrary.
The government could help by doing less.
JohnMoss
Its tempting to read an article like this and
moan about how UK workers are trapped in
an economic context that prevents their suc-
cess. But we have a fairly flexible labour mar-
ket and promising, ambitious ideas can still
get funding. This recession is an opportunity
for everyone to work harder.
TonyPurvis
I
N 2008, an elderly lady asked
a killer question about the
credit crunch which left the
so-called economic experts
red-faced. During a briefing by
academics at the London School of
Economics on chaos in the
international markets, the Queen
asked: Why did nobody notice it?
Another Old Lady she of
Threadneedle Street had certain-
ly failed to spot that Britains debt-
fuelled boom would end in
financial crisis. Throughout the
good years, the Bank of England
had been running a lax monetary
policy, printing notes and coins
bearing the Queens head with
abandon. The irony cannot have
been lost on the Queen: the subse-
quent credit crunch personally
cost her an estimated 25m.
Ten years earlier, the Bank of
England had been given its inde-
pendence by Gordon Brown and Ed
Balls, when Labour came to office
in 1997. The Banks job was to keep
retail price index inflation (RPI) at
2.5 per cent. After a year in which
the Bank missed its target in every
month but one, Gordon Brown
reacted by changing the inflation
target to the consumer price index
(CPI) at 2 per cent. This target has
been comfortably missed in all but
12 months over the past seven
years. Prices are still rising too fast,
at 2.4 per cent on CPI and 2.8 per
cent on RPI per annum. This is a
truly poor performance, given that
the economy is so flat. As real
incomes continue to fall, savers are
getting poorer.
The Bank of England has reacted
to this headache like an alcoholic
with a hangover. Printing even
more money in the form of a third
round of quantitative easing,
announced just a few weeks ago,
will probably lead to more infla-
TOP TWEETS
So Border Agency and immigration staff are
striking on the eve of the Olympics? Sack
them and employ people who want to work.
@rorycostain1
The Olympics to the rescue of the UK
economy? Not really. Once theyre over, our
problems will still be here.
@montalvo_d
Stimulus economics isnt working, so were
urged to try more stimulus. How bad will it
get before we try something new?
@DouglasCarswell
If David Cameron will never leave the EU, he
goes to the crease of EU renegotiations
having thrown his bat away.
@TimMontgomerie
As figures reveal the UK increasingly exports
outside the EU, should we abandon Europe?
YES
The news that the UK exported more goods to non-EU countries
than to EU countries in the three months to May, according to a
report by the Centre for Economics and Business Research, should
come as no surprise to anyone. Of course, our current trade to the
EU is being dampened by recession in much of the Eurozone, where
there is no sign of resolution. If or when these economies pick up,
then our trade to them should pick up also. But, putting aside these
short-term considerations, it is now crystal clear that our future
growth prospects crucially depend on a major realignment of our
trading patterns away from sclerotic, ageing Europe to the dynamic
and fast-growing parts of the world economy outside the EU.
Europe may have been the future once but it is no longer. Focusing
on the EU, politically or economically, is quite simply no longer in
this countrys interests.
Ruth Lea is economic adviser to the Arbuthnot Banking Group.
Ruth Lea
NO
Christopher Howarth
Although the brightest future opportunities for UK export growth
lie in the emerging economies, Britain should not give up on the
EU, which will remain its single largest market for the foreseeable
future. But the two are not mutually exclusive. We should seek out
new opportunities while trying to preserve and improve what we
already have. The EU delivers important trade advantages for us.
The customs union helps our goods exporters avoid costs. In
London we see the benefits of a single financial services market,
as firms use London as a gateway to the EU. However, without a
constant effort to fight protectionism and overregulation, the
benefits could decrease. We therefore need to expend energy to
ensure that the EU remains economically liberal and open to our
trade, while simultaneously reducing the costs of unnecessary
regulation.
Christopher Howarth is senior political analyst at Open Europe.
RAPIDresponses
tion. But the question we should be
asking is why Sir Mervyn King, as
governor of the Bank of England,
was given the remit of using mone-
tary policy as a tool to generate
growth.
His job is to keep inflation down
to provide monetary stability and
to allow wealth-creating firms to
generate growth. He should not be
printing money in the vain hope
that new liquidity might do the
trick. The chancellor knows, for he
has repeated it often enough, that
the only way we will get our econo-
my back on track is to control the
deficit and reform the supply side
of the economy to get firms invest-
ing again. That is why recent cuts
to corporation tax are so welcome.
In many ways, King is culpable
for our economic woes. His Bank
has almost complete operational
independence, yet he has failed to
control inflation. He acts as if he is
King of the City, arbitrarily calling
for the heads of top bankers as if
they were his courtiers.
So here is a suggestion. When
King retires next year, the new gov-
ernor should be handed a new
employment contract by the chan-
cellor, requiring him or her to hit
the inflation target within 12
months of taking office or resign.
And the new governor, like all
bankers, should be paid in line
with performance. It is time to
take the Old Lady in hand.
Syed Kamall is a Conservative member
of the European Parliament for London.
FRIDAY 20 JULY 2012
SYED KAMALL
Printed by Newsfax International, BeamReach 5 Business Park, Marsh Way, Rainham, Essex, RM13 8RS
Distribution helpline
If you have any comments about the
distribution of City A.M.
please ring 0207 015 1230, or email
distribution@cityam.com
Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor Marc Sidwell
News Editor Elizabeth Fournier | Business Features Editor Philip Salter | Lifestyle Editor Zoe Strimpel | Sports Editor Frank Dalleres
Art 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
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
Next governor of
the Bank must not
be paid for failure
Holy smoke! The Dark Knight Rises rocks
Three Titians at the National Gallery.
Pianist Kirill Gerstein.
LIFE&STYLE
cityam.com
FRIDAY 20 JULY 2012
35
REVIEWS
MUSIC
PROM 6
Royal Albert Hall | By Zoe Strimpel
$
PROMS often obey a formula: one
specially-commissioned piece,
one greatest hits-style show-
stealer and one slightly less great,
but still interesting, hit.
Prom Six, on Wednesday, was
no exception. An orchestral work
by Hong Kong born Fung Lam (a
youngster, born in 1979) kicked
off proceedings. Called Endless
Forms (a yawn of a title if ever
there was one), Lams premise is
an interesting one: Darwins
Origin of the Species and the idea
of evolution, but also, as the terri-
fyingly scholarly programme
notes told us, reflecting the
Buddhist concept of a journey
towards spiritual enlightenment.
It sounded wafty and sensual,
forming a sweeping soundscape,
so in that sense, Lam did a per-
fectly good job of it. But the rea-
son I and the rest of the
packed-out crowd were there
was the performance of
Rachmaninoffs Second Piano
Concerto by the almost supernat-
urally gifted Russian-born Kirill
Gerstein. The concerto is a cas-
cade of stormy emotion and soft
recalibrations, making it fero-
ciously difficult (anyone who has
seen the film Shine will know
how technically demanding its
sister concerto, the Rach Three, is
to play). But Gerstein made it all
look like picking some grass, or
drumming idly on a table, while
infusing the music with immense
emotion, delicacy and tumult.
The second half was Prokofiev:
Symphony No. 6 in E Flat Minor. It
was punchy and expert, though
not a good listen for a first-timer.
Look out for Proms with meaty
concertos: they tend to pack the
most satisfying punch. But
beware, if you havent booked yet,
you may find yourself in some-
thing of a squeeze.
ART
METAMORPHOSIS TITIAN
National Gallery | By Zoe Strimpel
$$
THIS show has the ring of some-
thing too complex for its own good.
Titian meets ballet meets modern
artwhat? This collaboration with
the Royal Ballet that celebrates
British creativity across the arts,
is, in fact, an absorbing, even enter-
taining, exhibit. There are only
three Titian paintings: Diana and
Actaeon, when Actaeon surprises
Diana and her chaste entourage of
nymphs bathing, to his peril; Diana
and Callisto, where Diana turns on
one of her nymphs when it turns
out shes pregnant, and the fabu-
lous Death of Actaeon, in which
Diana turns Actaeon into a stag
and shoots him dead with her
arrow for having glimpsed her
bare-chested. Titian was inspired by
Ovids Metamorphosis in which
my intention is to tell of bodies
changed/To different forms.
The other rooms take up Ovids
theme: Chris Ofili proffers five
large paintings imagining Ovid on
desire, lust and so on, in his trade-
mark sexual shapes and vivid, pur-
ply hues. In another room, Conrad
Shawcross has turned Diana into
an industrial robot, who moves
with strange grace and aggression,
with a flashlight on the end of her
wand with which she probes the
fallen Actaeons antler. Its oddly
moving and hypnotic.
Then theres the ballet: costumes
for Diana and Actaeon and an
unexpectedly captivating film reel
showing different directors work-
ing with ballet dancers to get
Diana and Actaeons tussle right.
Its not a big exhibit, so its
worth popping in if youre in the
area. Its a neat riff on a theme
once deemed great by Titian
himself.
UNLESS youve lived in a
cupboard for the last six
months, it wont have escaped
you that there is a new Batman
movie. Even if you have, youll
probably have heard about it
anyway. Youll have seen a
trailer through the little crack
in the door, or just absorbed the
essence of it through your
pores, like a plant leaching
nutrients from the soil.
The Dark Knight Rises
represents the tricky third part
of Christopher Nolans Batman
saga. Final installments demand
bigger, louder, longer, darker.
More villains, more locations,
more explosions. Nolan delivers
on all fronts and still succeeds
in making The Dark Knight
Rises feel stripped down. Even
the most extravagant set pieces
(and there are some very, very
extravagant set pieces) feel
eerily clinical, giving the
proceedings a sinister whiff of
plausibility. Nolan isnt the type
to give his characters two words
when an anguished grunt, will
suffice, nor to use CGI when he
can just throw a few cars or
aeroplanes about.
The script borrows themes
from Frank Millers seminal
graphic novel The Dark Knight
Returns, with an older, more
jaded Batman forced out of self-
imposed exile. This time Bane, a
barrel-chested force of nature
with a metal gas mask carved
into his face, is the villain.
While he was never going to
match the terrifying madness of
Heath Ledgers Joker, Tom
Hardy succeeds in creating a
genuinely frightening
opponent Batmans physical,
rather than mental, superior,
who speaks like an Etonian
Darth Vader (everyone will have
a different take on exactly what
it sounds like. My personal
favourite is Stephen Fry
talking into a yoghurt pot).
The first two thirds of the
film lag marginally behind the
second installment, solely on
the basis that Ledger provided
the greatest ever comic-book
villain performance. The
bravado finale, though, lifts it
above anything weve seen
before.
Nolans trilogy has reinvented
the superhero genre. In fact, it
might just be the best action
movie ever made. And if that
isnt reason enough to see it,
you should probably get back to
your cupboard.
FILM
THE DARK KNIGHT RISES
Cert 12A | By Steve Dinneen

Christian Bale reprises his role as the Dark Knight of Gotham
36
TV & GAMES
cityam.com
T
E
R
R
E
S
T
R
I
A
L
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive Super League 10pm
Premier League Years 12amTest
Cricket 2amSoccer AM: The
Best Bits 3amTime of Our Lives
4am-6amSuper League
SKY SPORTS 2
7pmTight Lines 8pmTest
Cricket 10pmWWE: Late Night
Smackdown 12amWWE: Late
Night Bottom Line 1amRoyal
International Horse Show3am
Premier League Years 5am
Sailing 5.30am-6amRoad to
London
SKY SPORTS 3
7pmRoad to London 7.30pm
Powerboating 8pmLive PGA
Tour Golf: The True South Classic.
11pmBritish Miler 12amSuper
League 2amPGA Tour Golf 5am
Thrillseekers 5.30am-6am
Powerboating
BRITISH EUROSPORT
7.30pmWorld Superbikes 9pm
Cycling: Tour de France 10pm
Intercontinental Rally Challenge
10.30pmTennis: Mats Point
11pm-12.35amLive WTA Tennis
ESPN
5.30pmLive: Manchester City v
Besiktas 7.30pmLive
Premiership Rugby Sevens Series
10.15pmGolf 11.15pmESPN
Kicks: Extra 11.30pmPress Pass
2012 12amLive ATP Tennis 2am
SportsNation 3amMMA Live
3.30amUFC Countdown Show
4.30am-7.30amLive Australian
Rules Football
SKY LIVING
7pmCriminal Minds 8pmBritain
& Irelands Next Top Model 9pm
Nikita 10pmCriminal Minds
11pmBones 12amCriminal
Minds 1.50am Supernatural
2.40amMedium3.30amBones
4.20amAmericas Next Top
Model 5.10am-6amPassport
Patrol
BBC THREE
7pmAthletics: Diamond League
Monaco 9pmOlympics Most
Amazing Moments 11pmFamily
Guy 11.45pmAmerican Dad!
12.30amLive at the Electric 1am
Snog, Marry, Avoid? 1.30am
Olympics Most Amazing
Moments 3.30amCan Anyone
Beat Bolt? 4.25amSnog, Marry,
Avoid? 4.55am-5.15amLive at
the Electric
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmThe Big
Bang Theory 8.30pm2 Broke
Girls 9pmFILMJohn Tucker
Must Die 2006. 10.50pm
Revenge 11.50pm The Big
Bang Theory 12.45amScrubs
1.15amHow I Met Your Mother
1.50am Rules of Engagement
2.10amDesperate Housewives
2.55am90210 3.35amGreek
4.20am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmStorage Wars 9pm
American Pickers 11pmStorage
Wars 11.30pmPawn Stars 12am
American Pickers 2amSwamp
People 4amThe Last Days of
World War Two 5amPawn Stars
5.30am-6amAmerican
Restoration
DISCOVERY
7pmBorn Survivor 8pmAuction
Hunters 9pmMan, Woman, Wild
10pmAmerican Chopper: Senior
Versus Junior 11pmAircrash
Confidential 12amMan, Woman,
Wild 1amGold Rush 2am
Auction Kings 3amAmerican
Chopper 3.50amFlying Wild
Alaska 4.40amBorn Survivor
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
8pmI Didnt Know I Was
Pregnant 9pmTwins by Surprise
10pmSupernanny US 11pm
Embarrassing Bodies 12am
Twins by Surprise 1am
Supernanny US 2am
Embarrassing Bodies 3amWife
Swap 4amBirth Stories
5am-6amBaby ER
SKY1
7pmRaising Hope: Jimmy
discovers he was once a talented
pianist. 7.30pmThe Dark Knight
Rises Premiere Special 8pmThe
Simpsons 8.30pmParents 9pm
Stella 10pmAn Idiot Abroad
11pmStargate SG-1 1amThe
Good Guys 1.55amRoad Wars
2.25amRaising Hope 2.55am
The Chicago Code 3.45amNCIS:
Los Angeles 4.35amAirline
5.05am-6amSell Me the
Answer
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
7.30pmCHOICE Match of the
Day Live
10pmBBC News
10.25pmRegional News
10.40pmMichael McIntyres
Comedy Roadshow11.25pmThe
National Lottery Friday Night
Draws 11.35pmWhite Van Man
12.05amEastEnders; Weatherview
1.35amSign Zone: Britains Lost
Routes with Griff Rhys Jones
2.35amSign Zone: Hairy Bikers
Best of British 3.20amSign Zone:
Great British Menu 4.20am-6am
BBC News
9amLive Golf: The Open
Championship
8pmRHS Flower Show Tatton
Park 2012
8.30pmGardeners World
9pmThe Great British Story: A
Peoples History
10pmThe Sarah Millican
Television Programme
10.30pmNewsnight
11pmThe Review Show
11.45pmWeather
11.50pmFILMJindabyne:
Drama, starring Gabriel Byrne
and Laura Linney. 2006.
1.45amBBC News 4.15am-6am
Close
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmBritains Secret Treasures
8.30pmCoronation Street
9pmSuperstar
10.30pmITV News
11.05pmLondon News
11.10pmFILMCity Slickers:
Comedy adventure, starring
Billy Crystal. 1991.
1.10amThe Store; ITV News
Headlines 2.45amFILM Eyes
Wide Shut: Stanley Kubricks
drama, starring Tom Cruise. 1999.
5.15am-5.30amITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmPhil Spencer: Secret
Agent
9pmThe Million Pound Drop
10.35pmCHOICE The Angelos
Epithemiou Show11.10pmA Short
History of Everything Else 11.40pm
New Girl 12.10amRandom Acts
12.15amFILMThe Family Stone
2005. 2amGlasgowland 2.05am
My Name Is Earl 2.30amMy Name
Is Earl 2.50am The Million Pound
Drop 4.15amLove Tube 4.20am
Deal or No Deal 5.15am-6am
Countdown
6pmHome and Away
6.30pm5 News at 6.30
7pmCricket on 5: England v
South Africa; 5 News Update
8pmCHOICE Ice Road
Truckers: Deadliest Roads; 5
News at 9
9pmBig Brother: Live Eviction
10pmThe Bachelor
11pmBig Brother: The Eviction
Interview
11.30pmBig Brothers Bit on the
Side 12.15amSuperCasino 3.55am
Motorsport Mundial 4.20am
Wildlife SOS 4.45amWildlife SOS
5.10amHouse Doctor
5.35am-6amHouse Doctor
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6 7 8
9
10 11 12 13
14 15 16 17 18
19
20 21
22
6 11
27 29
14 12 20
31 7
38
4 16
41
13 24
10 8 17
10 19
30 8
15
28
33
16
11
26
12
39
9
7
24
10
31
17
14
7
31
18
12
35
ACROSS
2 Startled (9)
6 Grows from,
originates (5)
7 Looks for (5)
9 Denite article (3)
10 Dough-like mixture
used to secure
panes of glass (5)
12 Weapon that
delivers a
temporarily
paralysing electric
shock (5)
14 Release suddenly
and often
violently (5)
17 Do without (5)
19 Grow old (3)
20 Harnesses (5)
21 Mythical Greek giant
with 100 eyes (5)
22 In the near future (9)
DOWN
1 Vanish (9)
2 Aroma (5)
3 Impaired in skill
by neglect (5)
4 Adjust again after
an initial failure (5)
5 Vehicles used
to travel over
snow (5)
8 In earnest (9)
11 Bathroom
xture (3)
13 Much ___
about Nothing,
Shakespeare
play (3)
15 Bring together (5)
16 Sense of good
style (5)
17 Banquet (5)
18 Ball game (5)
E
S
H
Y
A P
B
M
L

4

S P O I L S C D
L N A L P A C A
A K I N R V M
M D E S I C C A T E
S P O R T O O
Y A I R W
R B G L A N D
S E C E S S I O N E
T A O C Y A N
E G R E S S A S
T D O B L I G E
7 2 1 3 2 3 1
9 1 8 3 6 4 7 2 5
3 9 2 7 6 8 4
2 6 5 9 4 1 2
9 4 6 8 6 9 5 7
2 8 1 6
6 5 1 4 2 3 4 1
9 6 7 4 9 6 4
9 4 6 3 5 8 7
5 8 3 2 1 7 6 9 4
1 2 9 7 8 8 1
4
4
4
4
4
4
4
4
4
The nine-letter word was
OCTAGONAL
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
FRIDAY 20 JULY 2012
MATCH OF THE DAY LIVE
BBC1, 7.30PM
Great Britain v Brazil (Kick-off
7.45pm). Gabby Logan returns to
present todays second friendly at the
Riverside Stadium in Middlesbrough.
THE ANGELOS EPITHEMIOU SHOW
CHANNEL4, 10.35PM
The unkempt host quizzes Amy Childs
about her TV career, and challenges
rapper Professor Green to lift a giant
tortoise.
ICE ROAD TRUCKERS: DEADLIEST
ROADS CHANNEL5, 8PM
Lisa Kelly gets off to a bad start with
new partner GW Boles, who seems
determined to teach her how to do
her job.
TVPICK
Princess Highway just favoured in Oaks battle with Great Heavens
37
THEPUNTER
RACING TRADER
BILL ESDAILE, OUR RACING EXPERT, PREVIEWS THE ACTION FROM ASCOT, NEWMARKET AND THE CURRAGH
cityam.com
FRIDAY 20 JULY 2012

20 FREE BET!
FOR NEW CUSTOMERS
coral.co.uk
0800 242 232
Mon-Sat from8.30am
Text MOBILE
to 65559
1700+ Shops
nationwide
We reserve the right to change prices before or during the guarantee period should there be any non-runners from
the published list or a going change from the time of publication of the prices. NEW ACCOUNT OFFER: Available on
mobile, coral.co.uk and by phone. Newcustomers, 18s+ &UK residents only. Deposit and stake up to 20 on any sporting
event(s) to receive a matched deposit free bet on selected markets. Free bet stake not returned with any winnings. Full
terms at coral.co.uk/20tc You will be charged the cost of a standard SMS by your mobile network provider. Mobile
service compatible with all internet enabled handsets. Bet Responsibly. Gambleaware.co.uk - Call 0808 802 0133
KING GEORGE DAY AT
ASCOT
Each-way 1/5 the odds a place 1-2-3
5/2 Sea Moon
11/4 Nathaniel
7/2 St Nicholas Abbey
7/1 Dunaden
10/1 Danedream
14/1 Deep Brillante
16/1 Reliable Man
33/1 Brown Panther
40/1 Masked Marvel
250/1 Robin Hood
KING GEORGE VI QUEEN
ELIZABETH STAKES
1 Mile 4 Furlongs, Group 1, Tomorrow, Ascot 4.35pm, Live on BBC2
Each-way 1/4 the odds a place 1-2-3-4. Others on request.
Above races: Non-runner money back. Rule 4 may apply.
Prices subject to uctuation.
8/1 Bonnie Brae
10/1 Eton Forever
10/1 Edinburgh Knight
11/1 Lightning Cloud
12/1 Global Village
16/1 Hawkeyethenoo
16/1 Excellent Guest
16/1 Highland Colori
18/1 Ducal
20/1 Van Ellis
20/1 Al Muheer
22/1 Field Of Dream
22/1 Brae Hill
22/1 Noble Citizen
25/1 Bronze Prince
25/1 Esprit De Midas
28/1 Bannock
28/1 Joe Packet
28/1 Bertiewhittle
28/1 Instance
BETFAIR SUMMER DOUBLE
INTERNATIONAL STAKES
7 Furlongs, Handicap, Tomorrow, Ascot 3.55pm, Live on BBC2
BET IN PLAY
FROM THE FIRST DRIVE
TO THE LAST PUTT
OPEN
OUTRIGHT AND OTHER SPECIAL
MARKETS AVAILABLE
T
OMORROWS Group One
highlight, and next round
of the QIPCO British
Champions Series, the King
George V and Queen Elizabeth
Stakes (4.35pm), is one of the
most prestigious middle-distance
races in the calendar and the
Ascot showpiece is often the first
time the Classic generation step
up and meet their older
counterparts. Although there is
only one three-year-old in
tomorrows race, the Japanese
Derby winner Deep Brillante, this
should not detract from a
mouth-watering line-up.
Nathaniel, St Nicholas Abbey
and Sea Moon are all currently
jostling for favouritism, while Arc
winner Danedream and
Melbourne Cup hero Dunaden
add further depth. Nathaniel is
looking to become the first horse
since Swain in 1998 to land
successive renewals and is three
from four at the Berkshire track.
He will relish the cut in the
ground, and the step up to a mile
and a half, but the John Gosden-
trained star is coming here just
two weeks after a dogged victory
in the Coral-Eclipse at Sandown
and his handler has made no
secret of his concerns at such a
short break.
The son of Galileo beat St
Nicholas Abbey by four lengths
12 months ago but the word
from Ballydoyle is that their
dual-Coronation Cup winner has
improved since. I would be happy
to dispute that as his only success
this year was in a pretty weak
race and the five-year-old hasnt
won going right-handed for
nearly three years. His best form
has also come on better ground.
My main fancy is SEA MOON
at 5/2 with Coral. He has always
been highly rated by the in-form
Sir Michael Stoute, who has won
this five times with the likes of
Shergar, Conduit and Harbinger.
Sea Moon has improved rapidly
over the last year, bolting up in
the Great Voltigeur before
suffering a poor ride when
favourite for the St Leger. At the
Royal meeting last month he
won the Hardwicke in grand
style, a race that Harbinger won
on his way to a runaway victory
in this two years ago.
Dunaden was a very unlucky
in-running second that day and
is a serious threat, but at 7/1 with
Coral I think the value has gone
and the Mikel Delzangles horse
will need a strong pace to bring
his stamina into play.
In the 2.45pm handicap, CHIL
THE KITE won really well at
Doncaster under Ryan Moore
and the Hughie Morrison colt
still looks ahead of his mark. Not
many in the race know how to
win while Chil The Kite promises
further improvement.
Ryan Moore is set to enjoy a
great day with Stoute as
CARLTON HOUSE is difficult to
oppose in the Summer Mile
Stakes at 3.20pm. There is a case
for saying this former Derby
favourite has been over-hyped
throughout his career, but the
Queens charge is well clear on
official ratings and the drop back
to eight furlongs and Group Two
company should see him win.
Tullius has been rampant for his
new yard but his form is not in
the same league as the selection.
Ascot hosts no shortage of
competitive cavalry charges and
the International Stakes
(3.55pm) is another testing
puzzle. With 29 runners it can
be a lottery but Im quite keen
on the chances of LIGHTNING
CLOUD at around 12/1.
Kevin Ryans inmate wasnt
suited by the drop back to six
furlongs in a furiously run
Wokingham Stakes and has a
better record over this specialist
trip. Four-year-olds have won
seven of the last 10 renewals and
from his draw in 10 jockey Amy
Ryan will have a choice on which
route to take.
Eton Forever finally justified
connections faith in his ability
when winning the Buckingham
Palace at Royal Ascot, but he has
a huge task off top weight.
Bonnie Brae is an admirable
mare but Im not sure it will
be quite soft enough for her,
so Highland Colori, at
the bottom of the weights,
could be the danger for
Andrew Balding.
You can follow me on Twitter
@BillEsdaile for all my racing
views.
For ticket information, fixtures,
stats and news, visit:
www.britishchampionsseries.com
WHEN John Gosden
supplemented impressive
Lancashire Oaks winner, Great
Heavens, for Sundays Irish
version (3.20pm) earlier this
week, I was certain Id be
backing her with the testing
conditions sure to play to her
strengths. However, its all about
the price in this game; I was
expecting her to be around the
3/1 second favourite and the
market has forced me to change
my mind.
Dermot Weld has a powerful
string of fillies this year and
PRINCESS HIGHWAY
demolished a strong field in the
Ribblesdale Stakes at Royal
Ascot. I honestly thought shed
be around 5/4, but shes a 9/4
shot with William Hill and that
simply has to be taken. The main
worry is the ground, as she isnt
proven in very soft conditions,
but it was good-to-soft at Ascot
and class often comes to the fore
in these races.
I have the utmost respect for
Great Heavens and the going
holds absolutely no fears for this
daughter of Galileo. That said,
soft ground Haydock form
doesnt always stand up and,
similarly to her brother
Nathaniel, she had a very hard
race just a fortnight ago. I dont
think there will be much
between the market principals,
but Im happy to oppose Aidan
OBriens Investec Oaks winner,
Was, at 10/3 with Coral.
Although she did well to win at
Epsom, she was quite lucky that
day and is surely better on
decent ground.
Looking at todays action and
there are a couple of horses from
the all-conquering Gosden stable
that are worth following. Firstly,
FLUCTUATE, tipped up in this
column last week, takes his place
in Ascots Delancey Handicap at
5.05pm, having been wisely
pulled out at Newmarket on
Saturday due to the swamp-like
conditions. The Exchange Rate-
colt is entered in the Group Two
Celebration Mile next month
and hell have to be winning a
race like this well if hes to take
his chance at Goodwood.
William Buick will be on
board Fluctuate at Ascot, but
hell be disappointed to miss out
on the debut of VANITY RULES
in the fillies maiden at
Newmarket (6.10pm). Gosden
has already unleashed a
potential 1,000 Guineas filly in
Newfangled this season and
Vanity Rules is reportedly one of
the best juveniles in the yard.
Stablemate Ghurair did this
column a favour at Newmarket
last Friday on his debut and this
daughter of New Approach is
expected to break her maiden
tag at the first attempt.
nPointers
FLUCTUATE 5.05pm Ascot (today)
VANITY RULES 6.10pm Newmarket (today)
PRINCESS HIGHWAY 3.20pm Curragh (Sunday)
nPointers
SEA MOON 4.35 Ascot (tomorrow)
CHIL THE KITE 2.45 Ascot (tomorrow)
CARLTON HOUSE 3.20 Ascot (tomorrow)
LIGHTNING CLOUD e/w 3.55 Ascot (tomorrow)
8J:FKJ8KLI;8PC@M<FE99:)
+%*,
B@E>><FI><M@8E;HL<<E<C@Q89<K?JK8B<JJGFEJFI<;
9P9<K=8@I>IFLG((I) Im 4l ?yo plu Winne| 5o7,I00
( 522-4I 9IFNEG8EK?<I (27)(C0) 4--7 .......................................................................B=Xccfe
(I0) Runs. I0 Wins. 5(S,F,A,0S,0) Places. 2 202,484
Trainer. T 0ascombe 0wner. Mr A Black & 0wen Promolions Limiled
) II-??2 ;LE8;<E (28)(04) o--7 .......................................................................... :iX`^N`cc`Xdj
(2) Runs. ?0 Wins. (S,F,0S,0) Places. I? ?,I0,?22
Trainer. M 0elzangles (FR) 0wner. Pearl Bloodslock Lld
* II0-7? D8JB<;D8IM<C (4) 4--7 .............................................................................C;\kkfi`
(5) Runs. I0 Wins. 4(F,0) ?0,I04
Trainer. J 0osden 0wner. Mr B E Nielsen
+ 2II5-I E8K?8E@<C (I4)(C02) 4--7 .................................................................................N9l`Zb
(?) Runs. 8 Wins. 4(F,0S) Places. ? I,558
Trainer. J 0osden 0wner. Lady Rolhschild & Newsells Park Slud
, I0-?74 I<C@89C<D8E (?I)(T,0) 4--7........................................................................... FG\jc`\i
() Runs. Wins. 4(S,0) o,oIo
Trainer. A de Royer-0upre (FR) 0wner. Pride Racing Club
- 4?4?o0 IF9@E?FF; (?I)(V) 4--7 .........................................................................A8?\]]\ieXe
(I) Runs. I? Wins. 2(0) Places. 2 o0,I07
Trainer. A P 0'Brien (!RE) 0wner. Mrs J Magnier, Mr M Tabor & Mr 0 Smilh
. I?2-II J<8DFFE (28)(C0) 4--7 ..................................................................................ICDffi\
(o) Runs. 8 Wins. 5(S,0S,0) Places. ? o45,477
Trainer. Sir M Sloule 0wner. Mr K Abdulla
/ 5I-22I JKE@:?FC8J899<P (4)(0?) 5--7 ........................................................AGF9i`\e
(8) Runs. I4 Wins. 7(F,0S,0) Places. 2 2,425,Io8
Trainer. A P 0'Brien (!RE) 0wner. Mr 0 Smilh, Mrs J Magnier & Mr M Tabor
0 IIo-I4 ;8E<;I<8D (27)(BF,0?) 4--4..........................................................................8JkXib\
(4) Runs. I5 Wins. o(S,0) Places. 2 o05,40?
Trainer. P Schiergen (0ER) 0wner. 0eslul Burg Eberslein & Teruya Yoshida
(' I-22?I ;<<G9I@CC8EK< (55)(0) ?-8- ......................................................................... P@nXkX
(7) Runs. 5 Wins. 2(S,F) Places. ? 2,0?8,oI4
Trainer. Y Yahagi (JPN) 0wner. Sunday Racing Co Lld
20II. Nalhaniel ? 8 , W Buick II-2 (J 0osden), drawn (?), 5 ran.
BETT!N0 F0RECAST. 5-2 Nalhaniel, ? Sl Nicholas Abbey, Sea Moon, o 0unaden, I0 0anedream, Io 0eep
Brillanle, Reliable Man, 25 Brown Panlher, ?? 0lhers.
K_\(0k_c\^f]k_\H`gZf9i`k`j_:_Xdg`fejJ\i`\j`jk_\B`e^>\fi^\M@8e[
Hl\\e<c`qXY\k_JkXb\jXe[k_\_fefliifcci\X[jc`b\Xn_fjn_ff]iXZ`e^#
n`k_I`Yfk#E`a`ejbp#D`ccI\\]#9i`^X[`\i>\iXi[#J_\i^XiXe[;XeZ`e^9iXm\
fek_\c`jk%:XeEXk_Xe`\c]fccfn`ek_\_ff]gi`ekjf]gi\m`flj[lXcn`ee\ij
;X_c`XXe[JnX`eYpcXe[`e^YXZb$kf$YXZbm`Zkfi`\jXk8jZfkfeJXkli[Xp6
Stoute will be over the Moon
to win his sixth King George
REMAINING STAGES
nToday: A bunch sprint finish is
expected in this 223km stage from
Blagnac to Brive
nTomorrow: Wiggins will hope to
extend his lead further in this 53km
time trial, his speciality
nSunday: No upsets expected on this
traditional procession to the Champs-
Elysees Tour finale
BRITAINS Bradley Wiggins refused to
criticise Team Sky colleague Chris
Froome for undermining him after
taking a giant step towards becoming
the first man from these shores to
win the Tour de France.
Wiggins tightened his grip on the
yellow jersey with just three stages
remaining, of which one is his
favoured time trial, by extending his
lead over Italian Vincenzo Nibali by 18
seconds to two minutes, 41 seconds.
Spaniard Alejandro Valverde won
yesterdays 17th stage, the last in the
mountains, by 19 seconds from
Froome and Wiggins, who finished
on the same time, although the for-
mer looked conspicuously stronger.
On the final climb Froome, who
lies second in the general classifica-
tion but is under instructions to aid
Wiggins challenge, repeatedly pulled
away from the Londoner, only to drop
back and egg on his senior colleague.
Former road cycling star Laurent
Jalabert accused Froome of devalu-
ing Wiggins march towards an his-
toric victory, but the latter played
down tensions as he admitted sensing
imminent glory for the first time.
Chris said he wanted to go for the
stage and I said yes. We werent too
sure of the time gaps, said Wiggins.
The moment we crossed the
Peyresourde, I allowed myself to drift
and that was the first time I thought,
Maybe Ive won the Tour today.
Once we saw Nibali had cracked
on the top of the Peyresourde, we
knew we werent going to have the
danger of him attacking in the final.
At that point I knew it was pretty
much over.
All the way up that last climb my
concentration had gone, everything
about my performance had gone.
Chris was egging me on I was in
another world, really.
Chris Froome (front) repeatedly pulled away from his team-mate Bradley Wiggins (back) on the final climb, only to drop back
Londoner extends
Tour lead with just
three stages to go
OLYMPIC gold medallist Sir Chris
Hoy believes rival Jason Kenny
can succeed at London 2012 after the
24-year-old replaced him as Team
GBs individual sprint track cyclist.
Having been chosen to ride in
both the keirin and team sprint, Hoy
remains in a position to retain two
of the three gold medals won during
the 2008 Beijing Olympics and,
having also won the time trial at the
Athens Games in 2004 could yet
surpass Sir Steve Redgraves record of
five Olympic golds.
Whilst Im obviously
disappointed not to be defending all
three of my 2008 Olympic titles in
London, Jason thoroughly deserves
this opportunity and has a great
chance of success in the sprint,
said Hoy.
I am now focused entirely on
the keirin and team sprint and
my goals for those two events
havent changed.
Kennys selection follows victory
over Hoy during the semi-finals
of this years World Championships
in Melbourne before defeat in the
final to London 2012 favourite
Gregory Bauge. Alongside Hoy
and Kenny, Philip Hindes
completes the mens team sprint
team.
FRIDAY 20 JULY 2012
38
SPORT
cityam.com/sport
ENGLAND batsman Alastair Cook
admitted the scoring of his 20th Test
century provided a considerable
catharsis after inspiring England to
an impressive lead during day one of
the first Test against South Africa.
England reached 267-3 by close
with Cooks calm 114 not out
supplementing Jonathan Trotts 71
and Kevin Pietersens 42, and given
the vice captain had three days
earlier attended the funeral of
former schoolboy opening partner
David Randall, who died aged 27 of
cancer, it was only natural he would
be emotional in response.
It was very satisfying, said Cook,
who now equals England batting
coach Graham Gooch in the list of
Englands most prolific centurions.
When you come so close a few
times I think its been a year since
my last Test hundred it makes it a
very special moment. Its nice to join
Goochie. Clearly he was a great
player, and to have the same amount
of hundreds as him is special.
It was an emotional time, and
when you score hundreds the
emotions are right up there. We are
lucky enough to play cricket
unfortunately he [Randall] cant.
Morne Morkel dismissed England
captain Andrew Strauss with the
fourth ball of the day to provide
conditions in which it was difficult
for both Cook and Trott to impress,
and the former conceded that play
was not as fluid as he would have
perhaps preferred.
In that first session, it nibbled
around, he said. We had to grind
our way through it and because
the pitch is quite dry on top with
not much underneath, it was
quite slow.
The patience of Cook and Trott
frustrated South Africa for lengthy
periods with both Imran Tahir and
JP Duminy failing to stem their
steady flow of runs, and it was only
when Trott flashed at a wide bowl
from Morkel that he was caught by
wicketkeeper AB de Villiers.
Despite the difficulty experienced
at the start of a series which could
determine the worlds top Test
team, South Africas bowling coach
Allan Donald was satisfied with his
sides efforts.
[England] batted really well, he
said. Its a hard days Test cricket.
But we stuck to our task really well.
BY DECLAN WARRINGTON
BY DECLAN WARRINGTON
WORLD No3 Rafael Nadal has
admitted that his withdrawal from
London 2012 represents one of the
most disappointing developments
in his career.
As the reigning champion, Nadal
would have again been among the
favourites to win a medal but
recurring tendinitis of the knee has
forced him to accept with regret
that his Olympics dream is over.
I do not find myself in a
condition to compete, said Nadal.
It is one of the saddest moments
of my career. I am not able to
compete at the Olympics in London
and therefore will not be travelling
as planned with the Spanish
delegation. I have to think about
my colleagues. I cannot be selfish
and I have to think of the good of
Spanish sport, especially Spanish
tennis, and let a team-mate who is
better prepared compete.
Ive waited until the final
moment of my preparation and my
training, but I cannot do it.
Nadal will now focus upon
regaining fitness for the US Open
which begins on 27 August but his
absence could significantly
strengthen the chances of Britains
Andy Murray, who without Nadal
reached the final of Wimbledon.
BY DECLAN WARRINGTON
@cityam_sport
Cook: Century
provided much
needed relief
Only a huge surprise would now
prevent Wiggins, 32, adding the latest
chapter to Britains cycling success
story on Sunday in Paris, following
Mark Cavendishs green jersey tri-
umph last year on Le Tour.
He has led since stage seven and
rarely looked under severe threat,
although tensions among the team
and concerning Froome in particular
have simmered steadily as the sports
biggest event has unfolded.
Froome, 27, has not hidden his frus-
tration at having to play a supporting
role and stated that he hopes Team
Sky and Wiggins will return the
favour next year and aid his own
quest for the yellow jersey.
Hes really strong he can win
the Tour one day, Wiggins added
yesterday. Jalabert, a former
world champion and Vuelta de
Espana winner, was less complimen-
tary, saying: I do not like what
Froome did. It could devalue
Wigginss victory.
Englands Alastair Cook secured a century
Hoy expects Kenny to impress
after getting Olympics nod
Nadal saddened as troublesome
knee ends London 2012 dream
Wiggins senses historic victory
and defends Froome conduct
BY FRANK DALLERES
39
Donald satisfied with
delivering Opening
70 at Royal Lytham
Its good for them in their first game for their new club. It was good to
have a good understanding with their new team-mates and I am pleased

cityam.com
FRIDAY 20 JULY 2012
WORLD No1 Luke Donald was con-
tent with his opening round of the
Open Championship at Royal
Lytham and St Annes and believes
his start has positioned him well for
todays resumption of play.
Donald continued his streak of
failing to break 70 in the first round
of a major championship since 2006
and after 16 pars, one birdie and a
bogey is six behind leader Adam
Scott, but given the anxiety he
almost routinely experiences in a
tournaments early stages, he felt he
had cause for optimism.
I think mentally I was in a good
place, said Englishman Donald. I
felt like I wasnt getting too much
ahead of myself.
I hit a lot of solid shots today but I
didnt get as much out of it as I
would have liked. But it was kind of
an easy 70. It wasnt one where I was
getting up and down and struggling.
It was very workmanlike. If I con-
tinue to do that I know the putts will
start to drop and I can make a
few birdies.
In securing 64 and taking the lead,
Australias Scott equalled the course
record for an Open Championship at
Royal Lytham. Paul Lawrie, Zach
Johnson and Nicolas Colsaerts are
one shot behind, while Tiger Woods
and Bubba Watson are also in con-
tention at three under.
BY DECLAN WARRINGTON
A
RSENAL are facing yet another
summer battle to retain their
star players but one thing is
clear: if Robin van Persie wants
to leave then they have little choice
but to let him go, and let him go
where he wants.
If the club cannot meet the
Dutchmans financial demands or
satisfy his ambition then they have
to decide to sell. There is little point
in keeping a player who is so pivotal
to the team if they do not want to
stay there.
Arsenal, Im sure, would rather
he moved abroad, but he holds the
cards. If they try to usher him to AC
Milan or Juventus then he can just
sit tight, wait for them to relent and
eventually join Manchester City or
Manchester United.
Theo Walcott is also agitating
with just one year left on his
contract. Im surprised its got to
this but I think he should stay. He
still needs to fulfil his promise
and is more likely to progress
under Arsene Wenger than any
other manager.
Beyond splashing the cash its
hard to see how Arsenal avoid this
recurring scenario. Their salaries
are limited and, when its hard to
imagine them spending 20m-plus
on a signing, players might
justifiably feel their ambition is too.
Trevor Steven is a former England
footballer who played in the 1986 and
1990 World Cups and the 1988 and
1992 European Championships. He now
works as a talent scout and media
commentator.
Y
esterday was a great first day
to The Open. I must admit
that I wasnt surprised by any
of those that did well, but
there were some that surprised me
among those that didnt impress.
I was disappointed with Lee
Westwoods start. Its such a shame
for him, because I know how much
he wants to win this. It was a great
day for Tiger Woods, however he
played beautifully all day and
Adam Scott also played well.
Westwood was not alone in
having a bad day, though. Phil
Mickelson joined him, as did Justin
Rose. Id expected them both to play
well. They had the perfect day with
which to play some good golf, but it
just didnt happen for them.
Please savour responsibly drinkaware.co.uk
GOLF
COMMENT
SAM TORRANCE
In association with Glenmorangie,
official whisky of the Open Championships
The weather was good for all
concerned, so it was a very easy
opening day you can only really be
affected by the weather if its bad.
For Westwood, its a case of
needing to get his head down and to
just keep going. We all know how
great he can be you only have to
look at the amount of
Championships hes won but its
just eluding him at the moment.
Paul Lawrie was magnificent;
what a great story his could be.
Coming here, he was very
disappointed to have missed the cut
last week during the Scottish Open
at Castle Stuart he would have
loved to have played well there but
the two days he had off at the
weekend have done him the power
of good. This week might just be the
right week for him to perform.
The same goes for Nicolas
Colsaert. Both he and Lawrie are
vying for Ryder Cup places. Its been
an excellent start for them both but
theyve been superb all year.
Woodss start didnt surprise me.
I was very pleased to see the way he
played tactically that was key to
his great play.
But again, the weather remains
so pertinent. Its a great start for the
boys that are up there, but for those
that arent its going to be a
struggle to catch up. The weather
could yet help though, and can still
make this unpredictable. There are
many involved who could win still
this great event.
Sam Torrance OBE is a multiple Ryder
Cup-winning golfer and media
commentator. He has won 21 European
Tour titles in a career spanning 40 years
and famously sank the putt that clinched
victory for Europe in the 1985 Ryder
Cup. Follow him on Twitter
@torrancesam
TOTTENHAM and England central
defender Ledley King has confirmed
his retirement from football
following a lengthy battle with a
chronic knee injury.
The former Spurs captain, 31, who
spent his entire career at White Hart
Lane, will stay on at the club in an
ambassadorial role.
King said: I have always
considered it my club and have
always found it hard to imagine
wearing the shirt of another team.
Spurs ace King
forced to quit
BY FRANK DALLERES
FOOTBALL
COMMENT
TREVOR STEVEN
New calendar date for Wimbledon
nTENNIS: Wimbledon is to take place
a week later in the calendar from 2015.
There will now be a three-week,
instead of two-week, gap between
Wimbledon and the French Open.
Quartet set for Hall of Fame
nRUGBY UNION: Former England
captain Martin Johnson, current
captain Chris Robshaw, British Lions
coach Warren Gatland and former
Newcastle forward Pat Lam are among
28 individuals to be inducted into
English Rugbys first Hall of Fame.
Groves plans to punish Anderson
nBOXING: British super middleweight
champion George Groves will look to
punch Kenny Anderson in the throat
if, as planned, he fights the Scot at
Wembley Arena on 14 September.
Groves fights in the US next Saturday.
Results
=@IJKK<JKD8K:?
<e^cXe[ mJflk_ 8]i`ZX
;Xp(f],
K?<B@8FM8C1<e^cXe[_Xm\jZfi\[)-.]fik_i\\n`Zb\kj
X^X`ejk Jflk_ 8]i`ZX
<E>C8E;1 =`ijk @eej
A Str+ass ||WVar|e|................................................................................ O
A Oaa| rat aat...........................................................................................4
l Tratt c e V||||ers | Var|e|..................................................................
K P|eterser c e V||||ers | K+|||s.......................................................... 4Z
l Be|| rat aat................................................................................................ O
BZ ||o WZ r|O.............................................................................JO
Tat+| (J W|ts., 9O a1ers)...........................................................Zo
=Xcc1 O, O, Z5.
9fnc`e^1 Var|e| 8Z44Z, P|||+rer oZ48O, Ste]r
Z5oZO, K+|||s 4JJ4, T+||r 5O5O, Dam|r] oOO.
Ldg`i\j1 A R+af & S D+1|s.
>FC=
K?<(+(jkFG<E>FC=:?8DG@FEJ?@G#(Ra]+| l]t|+m &
St Arres OO, l]t|+m St Arres, l+rc+s||re, Er|+r)-(O|r
& lr| ar|ess st+te, p+r O). -+ A Scatt (Aas), -, Z
Ja|rsar (USA), P+a| l+Wr|e, N Oa|s+erts (Be|), -- B
Sree|er (USA), -. S Str|c|er (USA), T waas (USA), O
VcDaWe||, T Vata (Jpr), B w+tsar (USA), P H+rsar
(SWe), R Vcl|ra], E E|s (Rs+), -/ T A||er (Rs+), J H|c|s
(USA), A H+rser (Der), S P|rc|re] (USA), J Varr|sar, J
Kraer (Rs+), J Dar+|sar, A l+||r| (lr), -0 | Va||r+r|
(lt+), S A||er (Aas), O Sc|W+rt/e| (Rs+), A D+ S||1+ (Br+), B
Jares (Aas), V Kac|+r (USA), V B+|W|r, l S|+tter], T
J+|ee (T|+), B Estes (USA), T Patter, Jr. (USA), |
J+ca|sar (SWe), V le|s|m+r (Aas), T O|eser (Der), R
Sterre (Rs+), .' V S|r| (||j), T Bjarr (Der), V l+|r, R
O+|rer+ Be||a (Sp+), J V||||+ S|r| (lr), A TaWrser
(Aas), K St+r|e] (USA), J Dafrer (USA), R Oaaser (Rs+), J
Serer (Aas), S K|+r, H V+|+r (USA), A Ramera (Ar), K
J O|a| (Kar), l Dar+|, T V+ttesar (USA), P H+rr|rtar.
Chelsea manager Roberto Di Matteo on the debut goals of Eden Hazard (right) and Marko Marin in the 4-2 friendly win over Seattle
Lawrie stole the show, but bad weather could eclipse him
Luke Donald has failed to break 70 in a major championships first round since 2006
IN BRIEF
LEADERBOARD
n-6, 64, A Scott
n-5, 65, P Lawrie
n-5, 65, Z Johnson
n-5, 65, N Colsaerts
n-4, 66, B Snedeker
Arsenal must let Van Persie choose his club
TWO HEARTS. REAL PRECISION.
DUOMTRE QUANTIME LUNAIRE. Jaeger-LeCoultre Calibre 381.
The Dual-Wing concept is a genuine horological revolution featuring two distinct
mechanisms synchronised by a single regulating organ. The patented jumping
stop-seconds function enables time-setting to the nearest 1/6th of a second.
YOU DESERVE A REAL WATCH.
Jaeger-LeCoultre Boutique
1A Old Bond Street - W1S 4PA London
Tel. (0) 207 491 6970
www.jaeger-lecoultre.com