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KPMG warns
UK staff will
face job cuts
KPMG has told staff it is planning
hundreds of redundancies, with
up to three per cent of its UK
headcount at risk.
The firm is the only one of the
Big Four professional services
firms to embark upon a
redundancy programme in
recent years.
KPMG blamed a subdued
economy and fast-changing
marketplace in an email to staff
notifying them of the looming
cuts.
A review into the scale of the
job losses is ongoing and precise
numbers have not been decided,
but KPMG says it expects the
roles at risk to total less than
three per cent of its UK staff, or
just over 300 jobs.
However, partners at the firm
are not thought to be in the
firing line under this review.
Other Big Four firms told City
A.M. they do not have formal
redundancy programmes in place
at present, and the last time the
accounting giants made large-
scale cuts was in the wake of the
2008 financial crisis.
But a slowdown in activity
across the financial world,
including a slump in mergers
and acquisitions, has left some
areas of the businesses struggling
for work.
KPMGs review comes just
weeks after Simon Collins took
over as UK senior partner,
succeeding John Griffith-Jones.
Clearly, any redundancy
situation is regrettable and
KPMG will make every effort to
redeploy individuals within the
firm whose roles are at risk,
the firm added.
www.cityam.com FREE
speech from the 44-year-old. James
had used the same platform in 2009 to
attack the BBC, saying the only reli-
able, durable and perpetual guarantor
of independence is profit.
Elisabeth who had left her fathers
media empire in 2001 rejoined the
company last year after the phone
hacking scandal unfolded and her tel-
evision production company Shine
was bought by News Corporation for
415m.
She remains as chairman of Shine
and now sits on News Corps board of
directors with Rupert and James as
well as her other brother Lachlan.
A string of damaging revelations fol-
lowing the scandal has hit News
SHADOW DANCER IS A PROVOCATIVE, HARROWING SUCCESS
BY MARION DAKERS
FTSE 100 5,776.60 +2.40 DOWt13,057.46 -115.30 NASDAQt3,053.40 -20.27 /$ 1.59 +0.01 / t1.26 -0.01 /$ 1.26 +0.01
CHELSEA NEAR
MOSES MOVE
See Page 22 See Page 18
DAVID HELLIER: Page 2

Certified Distribution
02/07/12 til 29/07/12 is 131,194
ISSUE 1,703 FRIDAY 24 AUGUST 2012
THE DANCE MACABRE
MURDOCHS
AT WAR
BY JAMES TITCOMB
nElisabeth hits out at James in family feud
ELISABETH Murdoch last night dis-
tanced herself from her brother
James, criticising his leadership of
News International in the wake of the
phone hacking scandal and attacking
his rigorous focus on profit.
In her first public comments on the
affair since joining the board of her
father Ruperts News Corp last year,
she took the stage at the prestigious
MacTaggart lecture in Edinburgh to
deliver a speech that was received
with cheers and applause by a crowd
that had greeted her brother with
hostility three years earlier.
Putting herself in the spotlight after
Jamess resignation from News
International, she rejected her
younger brothers claims that chasing
profits was the only way to guarantee
an independent media.
I think that he left something out:
the reason his statement sat so
uncomfortably is that profit without
purpose is a recipe for disaster, she
said, in a highly personal 14-page
Corps reputation and led to James
standing down as executive chairman
of News International the sub-
sidiary that runs the Sun, the Times
and the Sunday Times, and which ran
the News of the World before last
years closure. In distancing herself
from the biggest casualty of the affair,
Murdoch is likely to spark speculation
that she is positioning herself for a
higher role at News Corp.
Last night, in contrast to James, she
defended the BBC and said the phone
hacking scandal showed the need for
a more responsible British media.
Personally I believe one of the
biggest lessons of the past year has
been the need for any organisation to
discuss, affirm and institutionalise a
rigorous set of values based on an
explicit statement of purpose,
Elisabeth said last night. It is increas-
ingly apparent that the absence of
purpose or of a moral language
within government, media or busi-
ness, could become one of the most
dangerous own goals for capitalism
and for freedom, she added.
Elisabeth Murdoch,
speaking at last
nights MacTaggart
lecture, said the
hacking scandal
showed the need for
a more responsible
British media
The Parliamentary Transport
Committee has asked transport
secretary Justine Greening to delay
handing the keys for the West Coast
Main Line over to FirstGroup
following concerns over the deal.
Chair Louise Ellman MP has
written to Greening urging her to
delay awarding the franchise, due
to be closed on 28 August, and wait
until the committee has had time
to scrutinise the deal. She wrote:
This would help to provide greater
transparency and address the
concerns that have been raised.
FirstGroup deal
hits the buffers
BY MICHAEL BOW
FORMER high flying Turkish-
Cypriot magnate Asil Nadir, once
dubbed the Sultan of Berkeley
Square for his luxurious Mayfair
lifestyle, was jailed for ten years yes-
terday after being convicted of steal-
ing from his former FTSE-listed
business empire.
Nadir, 71, was found guilty earlier
this week on ten counts of theft
totalling 28.9m from the firm
between 1987 and 1990 the equiv-
alent of 60m in todays money.
His devoted wife Nur Nadir, 28,
spoke outside court after the sen-
tence was delivered. She said her
husband was a business genius.
My husband is a warm and won-
derful man, she said. My husband
is innocent and, having faith in the
British justice system, we will con-
tinue with our efforts to rectify the
wrongs.
Sentencing Nadir yesterday to ten
years, Mr Justice Holroyde said the
former tycoon was a man of out-
standing business skill but his
crimes had been motivated by
pure greed.
You committed theft on a grand
scale, he added.
Nadir will serve five years of his
sentence before being released on
parole.
He said in a statement he was
Cameron pressed on Greening
David Cameron is coming under
increasing pressure to appoint a new
transport secretary in next month's
cabinet reshuffle after the prime minister
admitted his support towards the
expansion of Heathrow a policy
implacably opposed by Justine Greening.
Republicans eye gold standard
The gold standard has returned to
mainstream US politics for the first time in
30 years, with a gold commission set to
become part of official Republican party
policy. Drafts of the party platform, which
it will adopt at a convention in Tampa Bay,
Florida, next week, call for an audit of
Federal Reserve monetary policy and a
commission to look at restoring the link
between the dollar and gold.
News Corp chief to depart
Jonathan Miller, News Corps chief digital
officer, is leaving Rupert Murdochs media
empire at the end of September as the
company prepares to split in two. Miller
started at News Corp in 2009 and shifted
the companys digital strategy to focus on
content distribution deals and online
subscription models.
Krispy Kreme eyes Asia to lift profit
The Wests predilection for high fat, high-
calorie food is spreading farther across
the globe as Americas Krispy Kreme
revealed plans to open its first stores in
India.
Aggreko talks to power Indian lights
Delhi is considering plans to build huge
temporary power stations to prevent a
recurrence of the blackouts that left half
the countrys population without
electricity last month.
London safe haven aids Derwent
London is enjoying safe haven status
among investors according to FTSE 250
property company Derwent London. The
company, which specialises in offices in
Londons West End and the borders of the
City, said the Eurozone crisis had driven
more investment to the capital.
Fitch targeted by Italian magistrate
Italian prosecutors have compiled a
controversial case against Fitch Ratings for
allegedly issuing false and unfounded
judgements against Italy.
GM to cut hours at German Plants
General Motors reached an agreement
with labour representatives in Germany to
cut production at its Opel unit by sending
workers home early as many as 20 times
between 1 September and the year end.
Money-Fund Vote Cancelled
Securities and Exchange Commission
Chairman Mary Schapiro called off a
highly anticipated vote on rules for the
money-market mutual-fund industry after
losing a swing vote she needed to push
through the rule change.
THE TREASURY yesterday refused
to back down on plans to reform
corporation tax for multinational
companies, despite accusations
from backbench MPs and charities
that it will severely harm
developing countries.
In March George Osborne said
that UK firms would no longer pay
top-up tax on income earned in
countries with low-tax regimes. The
aim was to convince multinational
firms to remain domiciled in or
return to Britain.
As a result advertising giant WPP
immediately decided to relocate its
HQ from Dublin to London.
But this week a report by the
House of Commons international
development committee called for
the plans to be dropped, citing
figures from the charity ActionAid
that developing countries may lose
up to 4bn of revenue as the new
policy allegedly incentivises the use
of tax havens.
The UKs controlled foreign
company rules protect UK tax
revenues and were never designed
to protect other countries tax
revenues. Their reform will
encourage investment and drive
growth in the UK, said a Treasury
spokesman.
It is not sustainable for
developing countries to protect
their revenue using our tax rules.
Government
stands firm on
tax reforms
Asil Nadirs wife Nur praised her husband outside the Old Bailey after the sentence
2
NEWS
BY JAMES WATERSON
BY MICHAEL BOW
To contact the newsdesk email news@cityam.com
P
rofessional services group
KPMG warned just yesterday
that bankers faced more job
losses and pay cuts unless the
economy improved.
A day later and the firm was back
in touch, announcing that there are
going to be cuts in its own UK head-
count of around 11,300 people.
Yesterday the firm said it was carry-
ing out reviews of its structures and
headcount numbers. It is likely that
we will need to make a number of
roles redundant over the coming
weeks, a statement said.
Precise numbers are not known but
estimates yesterday suggest the num-
ber will be around 300.
The redundancies come just weeks
into Simon Collins reign as chair-
man of KPMG UK and have the hall-
mark of the type of move made by
many a chief executive coming in to
KPMG cuts own staff after warning bankers of job losses
FRIDAY 24 AUGUST 2012
a job.
There is certainly a change of feel
from the leadership days of John
Griffith-Jones where the firm react-
ed to the downturn following the
Lehman crisis by introducing a novel
programme of allowing staff to work
on four day weeks or take long sab-
baticals in order to bring its costs
down.
The firm reckoned it saved 4m or
the equivalent of 100 jobs because
one quarter of its UK staff enrolled
for the scheme.
This time there will definitely be
redundancies, something that is
almost certainly going on across the
industry but a touch more quietly.
Sources said the firm considered a
flexible working scheme but felt this
time around it would not do the job.
The latest cuts appear to be in
response to what the firm is seeing
in terms of its future work commit-
ments, which does not augur well
for the rest of the City.
The kind of work professional serv-
ice firms depend on these days is so
M&A and IPO focused, that when
these markets turn downwards,
many of the firms work streams
dry up.
How sad that London is not cur-
rently able to capitalise on the prob-
lems faced by Nasdaq in New York,
which botched up the Facebook IPO.
their spending back.
Hence the Co-op is sticking to its
2bn investment programme over
three years. This will help it expand in
areas, for example, such as legal serv-
ices, where it is hiring 3,000 people
over the period to handle consumer
law work such as conveyancing which
it can offer from its bank branches.
The purchase of the Lloyds branch-
es will bring the groups share of the
current account market up from
seven per cent and that is before it
wins over any customers disillusioned
by the scandals that have beset many
of its rivals.
The Co-op has an opportunity to
grow but it needs to probe its prob-
lem areas and sort them soon.
CO-OP: RISK OR OPPORTUNITY
Some, especially those behind rival
Lord Levenes unsuccessful NBNK
bid for the Lloyds branches, will no
doubt use yesterdays half-year
profits slide at the Co-op to argue it
isnt ready for such a big deal.
Nobody is more mindful than the
institution itself of the need to
improve performance, both at its
banks and in its other activites such
as supermarkets.
Theres no point being the most
ethical business in the corporate
graveyard, is a phrase commonly
heard around Manchester, the move-
ments headquarters.
But the Co-op argues its mutual sta-
tus enables it to carry on investing in
its business areas at a time when insti-
tutions being run on a more short-
term basis might be tempted to rein
most disappointed by the outcome.
His solicitors Bark & Co added: He
maintains that he is totally innocent
of all charges and will be lodging an
appeal.
Nadir, who moved to Britain in the
1960s, was a poster boy for the stock
market boom of the 1980s.
By the end of the decade he had
turned a small womens clothing
firm in the East End bought in 1980
into a global powerhouse comprising
200 subsidiary firms, including fruit
company Del Monte.
Nadir and PPI moved rapidly into
rarefied circles of British high society,
basing itself out of 42 Berkeley
Square a Georgian townhouse in
Mayfair dating from the 1740s.
However, he fled to northern
Cyprus in 1993 after being charged
with theft following an investigation
by the Serious Fraud Office into his
dealings at Polly Peck in 1990.
He dramatically returned to the UK
in August 2010 to face trial, due to a
burning sense of injustice, he said.
A case hearing is now scheduled for
27 September to discuss compensa-
tion claims.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
EDITORS
LETTER
DAVID HELLIER
david.hellier@cityam.com
Follow me on Twitter: @hellierd
Allister Heath is on holiday
Standard & Poors lowered its
outlook on HSBC to negative from
stable yesterday, leaving the bank
more vulnerable to a ratings
downgrade some time in the
intermediate future.
The ratings agency said that
money-laundering allegations
against HSBC may cause the British
bank to lose business and face
additional costs related to
regulatory fines and litigation.
A negative outlook shows the S&P
may lower a companys ratings over
the next six months to two years.
S&P puts HSBC
on lower rating
BY CITY A.M. REPORTER
Wife of fallen magnate
Nadir vows to fight on
INSURANCE giant Aviva last night
confirmed plans to cut 800 jobs in
the UK this year as part of a shake-up
aimed at reducing the number of
middle-managers in the company.
Aviva currently employs 18,500
staff in Britain and a spokesman
confirmed to City A.M. that up to
800 roles are at risk. In practice it
will be significantly fewer because of
voluntary redundancies, natural
turnover and opportunities for
redeployment, they added.
The job losses are part of a
restructuring announced in July by
executive chairman John McFarlane,
who is attempting to turn around
the firm following the departure of
former chief executive Andrew Moss
during the shareholder spring.
McFarlane is aiming to reduce
costs by 400m between now and the
end of 2014 but faces strong
opposition from trade unions.
David Fleming, Unite national
officer said: Our members face
being asked to pay the price of
boardroom failure and Unite is
dismayed that what started out as a
shareholders revolt on executive pay
will result in a jobs cull.
Yesterday around 70 per cent of
staff in the insurers UK Life division
were told their jobs were safe. A
further 25 per cent will be retained
in some role, with around five per
cent facing the sack.
Aviva to cut
800 jobs at its
UK businesses
BY JAMES WATERSON
FRENCH President Francois Hollande
stuck by German chancellor Angela
Merkel last night, as the pair preceded
crunch Eurozone talks by insisting
that Greece must maintain its pro-
gramme of fiscal consolidation.
The meeting came at the end of a
day in which new economic data
pointed to recession and tumbling
consumer confidence in the single
currency area.
We want I want Greece
to be in the Eurozone
its up to the Greeks to
make the effort that is
essential for that goal to
be met, Hollande said.
His statement echoed
comments made the
previous day by
Merkel and
Eurogroup
chief Jean-
C l a u d e
Juncker, as
E u r o z o n e
leaders turn
the screw on
Greece.
Germany and
France keep the
onus on Greece
BY JULIAN HARRIS
We and I will encourage Greece to
pursue the path of reform that
demands a lot from the people, added
Merkel last night, in a conference held
prior to dinner-time talks with
Hollande. Greece has been asking for
more time to implement austerity
measures that are conditional on it
receiving further tranches of bailout
funds from its international lenders.
But many lender governments are
opposed to loosening the conditions,
with Dutch finance minister Jan Kees
de Jager leading the disapproval.
I say to the German government
that it is best for it to stick with its
strict position, he added yesterday.
Delaying correct measures helps
nobody, not even the Greeks.
Hollande also repeated his call for a
euro-wide banking union.
Meanwhile a purchasing managers
index (PMI) suggested that the
Eurozone economy will shrink by
0.5-0.6 per cent this quarter,
while an EU consumer confi-
dence survey also worsened
more than expected in August.
Francois Hollande also wants
a banking union for Europe
CITIGROUP launched a blistering
attack on the Nasdaq stock market
yesterday over its botched
handling of Facebooks flotation.
The bank demanded the US
Securities and Exchange
Commission reject Nasdaqs
compensation offer after Citi and
several other firms lost millions of
dollars on the listing. It said
Nasdaqs $62m (39m) offer would
only cover a very small fraction of
Citigroup slams Nasdaq payout
offer for Facebook IPO disaster
BY JAMES TITCOMB
its total losses on Mays float,
which saw a host of technical
glitches and trades delayed by
hours.
Nasdaqs reckless, profit-
oriented decision to open trading
despite system malfunctions,
insufficient failover procedures
and a known design flaw resulted
in rampant confusion and further
system failures, Citigroup said,
demanding Nasdaq pay the entire
cost of its and others losses.
FRIDAY 24 AUGUST 2012
3
NEWS
cityam.com
MICROSOFT REVEALS NEW LOGO
Microsoft yesterday unveiled its first logo
change in 25 years as chief executive
Steve Ballmer (left) looks to unify the
firms branding ahead of new product
launches, such as the Microsoft Surface
tablet and Windows 8 operating system
FRIDAY 24 AUGUST 2012
4
NEWS
cityam.com
SOARING levels of bad debt combined
with the uncertainty caused by the
Eurozone crisis pummelled The Co-
operative Group, dragging down the
overall groups performance, its half-
year results showed yesterday.
Group profits came to 174m in the
first six months of the
year, down 34 per cent
on the 264m recorded
in the same period of
2011.
The group also
blamed intense compe-
tition in the supermar-
ket businesses,
which hit its
retail sales.
Continuing PPI
provisions meant
revenues fell 1.1
per cent, while
underlying profits
in the bank fell 67.9
per cent to 36.9m.
The bank is in the
process of purchas-
ing 632 Lloyds
Co-op suffers
as bank woes
knock profits
BY TIM WALLACE branches for up to 750m, expanding
its network to almost 1,000 branches
and 11m customers a move that may
take time to yield returns as the busi-
nesses are integrated.
Group chief executive Peter Marks
blamed the recession for much of the
fall in profits.
The impact has been felt most keen-
ly in our bank which has been hit by
increased impairments on lending to
corporate customers and the on-going
low-interest-rate environment, he
explained.
The groups funeral business saw
profits rise 6.6 per cent to 36m and
the pharmaceuticals divi-
sions profits jump 27.2 per
cent to 16.1m.
But food sales fell 1.2 per
cent on a like-for-like
basis and operating prof-
its fell 16.4 per cent to
119m, with the firm
blaming strong competi-
tion in the sector.
Bank report claims pensioners
benefited from QE programme
THE BANK of England yesterday hit
back at critics who claimed its
quantitative easing (QE) policy has
harmed pensioners, saying they were
actually the main winners from the
asset purchase programme.
A report from the Bank,
commissioned by the Treasury,
argues that QE boosted bond and
equity prices. It said this
consequently inflated the wealth of
asset holders, who tend to be older,
leading the Bank to claim that older
BY BEN SOUTHWOOD people had benefited the most.
The Bank also argued that without
the QE programme, the economy
would have faced a deeper slump.
Economic growth would have been
lower. Unemployment would have
been higher. More companies would
have gone out of business, the report
stated.
It stressed how this would have
harmed everyone, including savers
and pensioners.
But critics were not convinced.
There can be no doubt that QE has
made millions of pensioners
permanently poorer, said Nigel
Green of financial adviser DeVere. He
said that QE drove down the yield on
gilts, increasing pensions liabilites.
But the Bank said these opponents
were ignoring one side of the balance
sheet. Funds liabilities had increased,
but so had their assets, and at a rate
that compensated them fully, it said.
Pension expert Ros Altmann said
QE had pushed up inflation meaning
the impact on real incomes and
spending power of Britains retirees
had been damaged. The Bank seems
oblivious to this effect, she said.
Peter Marks blamed the
poor state of the economy
DESPITE the benefits the Bank accords to QE so far, policymaker Martin Weale did not
recommend more easing. At this stage, my personal opinion is that it is not necessary to
increase the size of the asset purchase programme, he told French newspaper Les Echos.
BANKS WEALE: FURTHER ACTION UNNECESSARY
A FORMER trader at RBS has
claimed the banks internal controls
were so lax that staff that had
nothing to do with LIBOR-setting
could easily alter the banks interest
rates submission.
Tan Chi Min, who is suing the
bank for wrongful dismissal, made
the claim in court documents filed
in Singapore, which emerged
yesterday. He says RBS minutes of
his disciplinary meeting miss out
details of conversations about how
traders at the bank tried to alter
the submissions.
In the documents he claims he
Ex-trader claims anyone at RBS
could have fixed LIBOR entry
BY TIM WALLACE told the disciplinary meeting that
it seemed anyone can change
LIBOR.
The bank declined to comment
yesterday. It revealed in its first half
results that its LIBOR activities are
under investigation by authorities
including the US Commodity
Futures Trading Commission, the
US Department of Justices (Fraud
Division), the Financial Services
Authority and the Japanese
Financial Services Agency, as well as
competition authorities in Europe,
the US and Canada.
RBS confirmed several employees
have been dismissed as a result of
its own investigations.
INCREASING numbers of banks
clawed back pay from executives
who breached codes of conduct,
failed to perform or made losses on
transactions last year, according to
new research from Mercer.
And this years scandals could see
pay reduced further.
A total of 14 per cent of banks
across North America, Europe, the
Middle East and Africa clawed back
some compensation payments last
year, while another three per cent
claimed back the payments but
have yet to see the money returned.
More pay is expected to be
reclaimed this year 62 per cent
now have claw-back provisions in
place, up from 44 per cent in 2011.
And as banks take an increasingly
long-term view on bonuses, more
deferred payments are set to be
reduced or cut entirely as
apparently strong performance in
one year may turn out to be
unsustainable three or four years
down the line.
HR specialists Mercer praised
banks for their effort in ensuring
bonuses are tied to performance.
It is critical for a firm to
maintain a forward-looking long-
term incentive programme,
particularly for top executives, in
order to keep them consistently tied
to the future success of the
company, said partner Vicki Elliott.
Bonuses lost
as more banks
claw back pay
BY TIM WALLACE
CLEAR details on fees and charges on
pensions, as well as regular, stan-
dard updates on costs are vital if
public trust is to be rebuilt in the
industry, the Association of British
Insurers (ABI) said yesterday, calling
for a sector-wide agreement on trans-
parency.
Millions of new savers are set to
build up pension pots for the first
time as auto-enrolment starts, lead-
ing the ABI to demand more scruti-
ny of costs as well as benefits.
Writing to the Financial Services
Authority (FSA) and the Pensions
Regulator, the ABI said clarity would
help employees to make good deci-
sions, and said the costs incurred
by pensions schemes in the
course of their investment
trading should be dis-
closed to employees in
contract- and trust-based
schemes.
The National
Association of
Pension Funds wel-
comed the letter,
arguing employees
Pension groups
want to open
up on charges
BY TIM WALLACE
must be able to gauge whether
theyre getting a good deal out of
auto-enrolment.
And the Investment Management
Association said trust and confi-
dence are both pre-requisites for a
successful retirement savings cul-
ture, which would be boosted by
increased transparency.
However, although the ABI is seek-
ing help from the authorities, the
FSA insisted such a change of set up
is down to the industry alone.
Meanwhile the Pensions
Regulator welcomed the
letter, saying action by
the industry now, ahead of
the main wave of auto-
enrolment, is timely and
appropriate.
Automatic enrol-
ment is being
phased in from
October 2012, and
is expected to see
an additional 8m
workers save for a
pension.
The ABI wrote to the
FSAs Martin Wheatley
INSURANCE firm Phoenix
yesterday named Howard Davies,
the former head of the Financial
Services Authority, as its new
chairman. The company also
increased its cash generation target
for the year by 100m.
Chief executive Clive Bannister
told City A.M. that his new
chairman would bring a breadth
of expertise to the firm, which
also announced first-half profits of
207m, up from 136m for the
same period last year.
These are strong results in a
period of uncertainty. Weve
Phoenix appoints ex-FSA chief
Howard Davies as chairman
BY JAMES WATERSON generated 119m cash, giving us
the confidence to raise [full-year]
cash targets from 500-600m to
600-700m, Bannister added.
Phoenix operates life insurance
firms that are closed to new
business and combines them into a
more profitable whole. But it is
under pressure to renegotiate
banking facilities relating to more
than 2.1bn of debt that it used to
fund previous expansions.
While there is no update on the
debt refinancing, management
remains comfortable that
discussions will reach a successful
outcome, said analyst Matthew
Preston at Berenberg bank.
FRIDAY 24 AUGUST 2012
6
NEWS
cityam.com
Former FSA head Howard Davies has been named chairman of Phoenix
freight operations were
profitable in the year to 30
June, but a A$450m loss on
its international routes
and A$398m in
restructuring costs
hammered its bottom line.
Chief executive Alan
Joyce declined to give any
guidance for earnings in
the current year, but said
the airline remained
committed to reaching
break-even in its
international business in
2015.
Theres
no silver bullet,
theres no easy fix, theres
no exit here thats going to
solve it, Joyce told
reporters yesterday.
But we are committed
to it, he added.
The firm said that its
outlook remains
challenging, volatile and
dependent on a number of
uncontrollable external
factors.
AUSTRALIAN airline Qantas
has scrapped an order for 35
new Dreamliner planes as it
fights to control costs
following a A$244m (160.9m)
annual loss.
Qantas yesterday posted its
first loss since it was
privatised 17 years ago,
blaming an 18 per cent jump
in fuel costs and strike action
linked to its ongoing
spending cuts.
As a result, the firm has
cancelled its $8.5bn order for
Boeings new Dreamliners.
Qantas short-haul and
ANGLO American has defused its
months-long fight with Chiles
state copper miner by agreeing to
sell more than a quarter of its
prized AA Sur assets.
Chilean miner Codelco has
dropped the threat of legal action
after agreeing to take a 29.5 per
cent holding in the site, which
includes the lucrative Los Bronces
mine.
The stake is smaller than the 49
per cent Codelco tried to buy
using a longstanding option in
October, but at a discounted price
to its market value.
The deal brings to an end a
dispute over the AA Sur assets,
sparked when Anglo sold a stake
in the mines to Mitsubishi at a
hefty premium late last year,
scuppering Codelcos attempts to
use the option it had held since
1978.
Under yesterdays agreement,
Anglo will cut its 75.5 per cent
stake to 50.1 per cent, while
Mitsubishi will reduce its holding
from 24.5 to 20.4 per cent.
This allows Codelco and its joint
venture partner Mitsui to buy a
29.5 per cent stake in a sale worth
$2.8bn (1.76bn).
Executives trumpeted the deal,
reached just a day before the
firms self-imposed deadline, as
beneficial to all sides.
Anglo American chief executive
Cynthia Carroll said the firms
have gained significant value for
our shareholders and other
stakeholders.
Chile will reap some $1.3bn in
tax from the deal, according to
Codelco.
Chile thaws as
Anglo agrees
to sell Sur stake
BY MARION DAKERS
DIAGEO, the drinks giant, yesterday
reported an 11 per cent hike in full-
year profits after its exposure to fast-
growing markets in Africa, Asia and
Latin America helped offset weaker
sales in Europe.
The maker of Johnnie Walker and
Smirnoff Vodka said it made an oper-
ating profit of 3.2bn in the year to
30 June, while overall net sales grew
six per cent to 10.8bn, driven by
growth in emerging markets which
now account for almost 40 per cent of
Diageos business.
In Europe challenging economic
conditions, particularly in Spain,
Greece and Italy, dragged sales down
by one per cent, with UK net sales
down two per cent.
Nevertheless Russia, Eastern Europe
and Turkey posted stronger sales driv-
en by scotch and the group said its
recent acquisition of Turkeys Mey
Icki raki brand would help serve as a
further platform for growth.
Diageo has been in talks to buy
Mexican tequila maker Jose Cuervo,
from its owners, the Beckmann fami-
ly. But yesterday chief executive Paul
Walsh hinted that the two sides
remained at a stalemate.
We would love to deepen our rela-
tionship with the brand and with the
family but it takes both parties to
want to do that and the right set of
economics that works for sharehold-
ers and the family, Walsh said.
Diageo success
spurred by new
market growth
BY KASMIRA JEFFORD
Diageo distributes the Mexican dis-
tillers Jose Cuervo brand but wants to
move toward full control of the fami-
ly-owned company ahead of the distri-
bution agreements expiration next
year.
Diageo has a war chest of 1.6bn in
cash but Walsh said the group would
not be pressured into frittering it
away. He also shrugged off reports
that it is in talks to buy Indias United
Spirits, saying there is dialogue with
everyone in the industry.
The largest producer of Scotch
whisky, Diageo announced earlier this
year plans to invest over 1bn in the
drink over the next five years to meet
growing demand from emerging mar-
kets. Johnny Walker delivered excep-
tional sales of 15 per cent during the
period.
The company recommended an
eight per cent increase in the final
dividend to 26.9p, giving a total divi-
dend of 43.5p.
Aegis profits shoot up ahead of Dentsu
sale but ad spending forecasts are cut
ADVERTISING firm Aegis said new
contracts including a lucrative
deal with General Motors led to a
20 per cent rise in first-half profit,
in what is likely to be the
companys last earnings report
before it is sold to Japanese giant
Dentsu.
Chief executive Jerry
Buhlmann said the results
continued Aegiss considerable
BY JAMES TITCOMB positive momentum
although he did warn that
advertising spend would not
grow as fast as previously
thought.
Aegis subsidiary Carat cut
its ad spend growth forecast
for this year from six per cent
to five per cent, and said
online spending would
overtake newspaper ad sales
next year to become the
second-biggest advertising
market after TV.
Aegis, whose 3.2bn sale to
Dentsu was overwhelmingly
approved by shareholders last
week, said revenue rose 15
per cent to 596.8m and
profit before tax was 87m.
The agency said the
acquisition is expected to be
completed in the fourth
quarter of the year subject to
clearing a number of
competition hurdles.
Diageo chief executive Paul Walsh saw an 11 per cent increase in profits
Emerging markets prove thirsty
for spirits with a taste of luxury
W
ITH results as strong as its
premium scotch, Diageo
more than met
expectations yesterday,
topping up its share price and
buying a round of applause for its
exposure to emerging markets
growth. Profit before tax rose 32 per
cent year on year.
One of the interesting aspects is
exactly what the emerging markets
are buying. Even as their economies
grow at rates unimaginable
anytime soon in Europe, you would
be forgiven for thinking the new
middle-class topers of Latin
America, Africa and Asia Pacific
might be supping more basic brews.
But take vodka. Diageo saw super
premium brand volume up 30 per
cent overall, and both Latin
America and Asia Pacific posted net
sales growth of over 50 per cent in
handcrafted Ketel One. Or whisky
(and whiskey), where again
premium and super premium
brands grew in all regions. Johnnie
Walker grew net sales 15 per cent
overall, and Gold Label net sales
more than doubled in Asia Pacific.
As for gin super premium gin
grew over 20 per cent in Asia Pacific
and Latin America as the category
saw a resurgence as the white spirit
of choice with bartenders.
Although it was also true that
Africa saw double digit net sales
growth of value gin brands.
All of this is good news for
Diageo, of course, which is
primarily a purveyor of premium
spirit brands. But its also a
reminder that the economic story
of emerging market growth is
about shaking up business
opportunities at every level and
making the ingredients of a really
great martini available worldwide.
Diageo PLC
20Aug 17Aug 21 Aug 22Aug 23Aug
1,700
1,710
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1,680
1,690
p
1,698.00
23Aug
Qantas has posted its first
annual loss since privatisation
FRIDAY 24 AUGUST 2012
7
NEWS
cityam.com
Aegis Group PLC
20Aug 17Aug 21 Aug 22Aug 23Aug
237.90
238.00
237.60
237.50
237.40
237.30
237.70
237.80
p
237.30
23Aug
BY MARION DAKERS
Qantas Airways Ltd
17Aug 20Aug 21 Aug 22Aug 23Aug
1.26
1.22
1.24
1.16
1.18
1.20
AUD
1.20
23Aug
BOTTOM
LINE
MARC SIDWELL
Qantas scraps plane order as it posts an annual loss
PREMIER FOODS yesterday said it had
sold some of the UKs best-known
breakfast table staples including
Hartleys jam and Gales Honey to an
American food group, in its latest
efforts to pay down debts.
Hain Celestial, the US organic prod-
ucts company, known for its Earths
Best and Celestial Seasonings Brands,
has agreed to pay around 200m for
Premiers jams and spreads business.
The portfolio, which also includes
Sun-Pat peanut butter, the mar-
malade brands Robertsons, Frank
Cooper, Keiller and the licence for
Roses marmalade, generated $250m
in sales in its last financial year.
Premier ran up large debts after buy-
ing RHM and Campbell Soups UK and
Irish business in 2006 and has been
selling off assets to meet the refinanc-
ing terms agreed with its banks in
March.
It has to raise 330m from asset
sales by mid-2014 after its banks, led
by Royal Bank of Scotland, agreed to
Premier skips
breakfast after
200m sell-off
BY KASMIRA JEFFORD
give Premier more time to repay 1bn
of loans. It has raised 275m so far.
Hain Celestial is an example of yet
another foreign buyer raiding UK
larders in recent years. It has been rap-
idly cementing its foothold in the UK
after buying Daniels, the owner of
Covent Garden soups, last year.
In a statement yesterday the compa-
ny said buying Premiers jam busi-
ness gave it access into the
non-refrigerated food market and
would pave the way for Hain becom-
ing one of the largest healthy food
companies in the UK.
Spayne Lindsay & Co, an independent advi-
sory rm focused on the consumer indus-
tries, has acted for Premier Foods on several
disposals and acquisitions over the years
and was hired last year to advise on the sale
of its sweet spreads and jellies business.
The team was led by Tom Lindsay, a char-
tered accountant and Manchester university
graduate who co-founded Spayne Lindsay
in 2000 after working more than twenty
years in investment banking for Flemings
and Lehman Brothers. A consumer industry
veteran, Lindsay is also on the board of
Eminate, a subsidiary of Nottingham
University which commercialises research-
led projects and recently signed a deal with
Tate & Lyle to supply it with a new product
that reduces the salt content in food.
Spayne Lindsay has worked with Premier on
a number of deals including the 460m
takeover of Campbells UK and Irish busi-
ness in 2006, which brought the iconic
soup, Batchelors and Oxo into its fold.
It also acted for Haine Celestial in October
last year on the $230m acquisition of
Daniels group, the chilled food manufactur-
er whose brands include New Covent
Garden soup and Johnsons natural fresh
squeezed juices. The rm also advised Uniq
on its sale to Greencore last year.
ADVISERS
TOM LINDSAY
SPAYNE LINDSEY
Fifty Shades of Grey novels give
newsagent WH Smith a boost
WH SMITH yesterday said the huge
success of the Fifty Shares of Grey
trilogy and other so-called passion
fiction novels helped boost trading
across its 600 high street stores.
In a brief trading update, the
books and stationary firm said its
high street arm had performed
well thanks to the recent positive
publishing schedule that included
EL James erotic bestseller.
Shares soared in early morning
trading before closing up 2.7 per
cent after the company said full-year
profits would be at the top end of
analyst expectations.
BY KASMIRA JEFFORD
Profit forecasts previously stood at
97-101m and are now expected to
come in at the top end of that range.
Its share price was also buoyed by
the announcement of a further
50m share buyback programme in
2012 to 2013 after recently spending
the same amount.
WH Smiths Travel arm, which
includes stores at airports, train
stations, and motorway service
stations, also continued to trade
well despite the current economic
climate and plans to open 35 UK
stores this year remain on track, the
group said.
Peel Hunt analyst John Stevenson
said: Strong cash generation and
an attractive yield underpin the
shares, although our enthusiasm is
tempered by the potential impact of
technology.
Shares closed up at 597.50p.
Premier chief Michael Clarke has sold off some of the UKs best known breakfast staples
WH Smith PLC
20Aug 17Aug 21 Aug 22Aug 23Aug
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620
580
570
590
600
p
597.50
23Aug
FRIDAY 24 AUGUST
8
NEWS
cityam.com
JD SPORTS, the sportswear retailer,
has agreed to sell its Rugby brand
Canterbury to its majority
shareholder Pentland for 1, three
years after the group bought it out
of administration.
Pentland, which owns brands
including Beghaus and Speedos and
holds a 58 per cent stake in JD
Sports, will pay a token 1 for
shares in Canterbury and 22.7m
for its debt.
The brand, which is the official
kit partner to the Rugby Football
Union, generates most of its sales
in Australia and New Zealand
where it recently performed well
on the back of the Rugby World
Cup.
JD Sports sells rugby kit brand
Canterbury to Pentland for 1
BY KASMIRA JEFFORD
But poor sales in Europe and the
US dragged it to a pre-tax loss of
1.1m last year.
JD said the disposal will free up
management resources to further
develop its core retail business in
Europe, including the recently-
acquired Blacks business.
The sports retailer has also
agreed to buy casual clothing
brand ONETrueSaxon from
Pentland for 50,000.
Both deals require shareholder
approval at a meeting to be held on
13 September.
Chairman Peter Cowgill said:
Acquiring the ONETrueSaxon
brand will allow us to leverage our
in-house expertise and offer new
products through our core retail
fascias.
Premier Foods PLC
17Aug 20Aug 21 Aug 22Aug 23Aug
70
68
69
65
64
66
67
p
67.25
23Aug
HgCapital Trust beefs up value
after Mercury Pharma sell-off
PRIVATE equity trust HgCapital
Trust yesterday reported double
digit total return figures after
exiting two of its top three
holdings this year.
The 32-company portfolio saw its
disposal of pharmaceutical distribu-
tor Mercury Pharma last week and
psychometric testing outfit SHL in
July add 28.6p to its net asset value
(NAV) equal to a total return of
10.1 per cent over the half year.
The three exits from Pharma,
SHL and windfarm vehicle RPPI
boosted the firms investment fire-
power by 90m.
BY MICHAEL BOW Adding in a 40m undrawn loan
facility it gives the trust 130m to
invest equivalent to 34 per cent of
net assets.
Chief executive Nic Humphries
also said more portfolio company
disposals would be forthcoming in
the next six to 12 months at a sig-
nificant premia.
He added: If we look at the cur-
rent portfolio we continue to see
double digit revenue and EBITDA
growth.
We continue to believe thats
what well see going forward, almost
whatever the economy does over the
next six to 12 months.
Growth in underlying investments
slowed over the full year, with the
top 20 companies in the buyout port-
folio posting average sales growth of
11 per cent, down slightly from 13
per cent the year before.
HgCapital Trust PLC
23Aug 17Aug 20Aug 21 Aug 22Aug
960
965
955
970
975
980
985 p
984.00
23Aug
DEALMAKERS in emerging markets
are now feeling the impact of the
worldwide slump in mergers and
acquisitions, according to research
out yesterday.
The overall number of cross-
border deals fell 15.8 per cent to
979 in the first half of 2012
compared to last year, figures from
KPMG claim.
It found that even fast-growing
economies such as China are seeing
deal activity dampened this year,
suggesting the economic worries
that have cast a pall over M&A in
Western markets are being felt
worldwide.
Deal volume between high
growth emerging markets is down
Emerging markets feel sting of
the Eurozone as M&A deals fall
BY MARION DAKERS 30.72 per cent year-on-year.
Buyers in emerging markets have
also pared back purchases in
mature economies to the lowest
level since 2006, the research said.
Meanwhile, the number of firms
in developed markets looking to
high-growth regions fell to its
lowest in seven years, with 661
transactions in total.
UK companies remain subdued,
with just 51 deals in high-growth
economies compared to 66 a year
ago.
KPMG global head of M&A David
Simpson said this is not a sign that
the country has gone cold on
emerging markets. Rather, the low
number of deals involving UK firms
is simply symptomatic of the
depressed market generally.
TALKS between Best Buy and its
founder, who has expressed interest
in buying back the company, were
last night reported to be back on.
Earlier this month, Best Buy
founder Richard Schulze announced
an offer to buy back the company for
an estimated $8bn with an offer of
$24.00 to $26.00 per share in cash.
Best Buy initiated the fresh discus-
sions shortly after announcing quar-
terly earnings on Tuesday revealing a
91 per cent drop in profit that missed
analysts expectations, according to
Bloomberg.
Best Buy back
in buyout talks
BY CITY A.M. REPORTER
SIGNET Jewelers posted a larger-
than-expected quarterly profit
yesterday.
Its UK Ernest Jones chains same-
store sales rose 4.4 per cent. Still, the
companys gross margin there took a
hit from shoppers preference for sale
items, Signet said.
Company-wide, same-store sales
rose 7.1 per cent, compared with a
slower 1.2 per cent in the last quarter.
Net income rose to $70.7m, or 85
cents per share, from $66.3m, or 76
cents per share, a year earlier.
Signet trumps
expectations
BY CITY A.M. REPORTER
Concerto 4 seater sofa, cushions included. No deposit with 4 years interest free credit. 48 equal monthly payments of 16.64. Or pay nothing until Easter 2013 then 36 equal monthly payments of 22.19. 0% APR. Total 799. 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. After sale price applies from 28.08.12 - 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
16.64
a month
no deposit,
no interest, ever n
Concerto
now only
799
after sale price
899
Summer Sale Opening Hours: Now open 10am to 6pm Sundays
the DFS
summer sale
E
N
D
S
B
A
N
K

H
O
L
ID
A
Y
M
O
N
D
A
Y
O
N
M
A
N
Y
G
R
E
AT D
ES
IG
N
S
SARACENS caused a stir in the City
again last night when the high-flying
rugby team returned to the
Honourable Artillery Club for a glitzy
pre-season friendly against French
stars Stade Francais.
The 2011 Premiership champions
won 61-17, with England winger Chris
Ashton scoring a hat-trick.
But it wasnt just the rugby getting
tongues wagging. The St Albans-
based outfit also piqued interest
with the launch of their
Tulip Club high-end
hospitality venture.
The Tulip Club,
whose logo
appeared on the
players shirts in yes-
terdays match, will
be housed in
Saracens new 20m
Allianz Stadium in
north London,
Saracens star
brings rugby to
the Citys heart
which is due to open in February.
Saracens and former England for-
ward Hugh Vyvyan, who is running
the Tulip Club, told the Capitalist:
After eight years playing at the high-
est level of English rugby Im excited
about my move into developing
Saracens off the pitch.
The Tulip Club is an exclusive net-
working club combining the cama-
raderie of rugby and business with
the most luxurious matchday expe-
rience in sport. We aim to
be at the heart of the
City.
Saracens has also
agreed a tie-up with
sports supplements
makers Optimum
Nutrition.
Labour MP John Mann had a brush with deah after his wheels were tampered with
Got A Story? Email
thecapitalist@cityam.com
10
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THECAPITALIST
The Docklands Light Railway
celebrated its 25th birthday in the
time-honoured tradition yesterday
morning: with balloons and a cake with
candles. DLR director Jonathan Fox was
on hand at Stratford Regional Station to
cut the cake and dispense slices to lucky
commuters. The Capitalist understands
that it was a three foot-long sponge
cake, in the shape of DLR carriages. But
dont feel left out if you missed
yesterdays festivities instead try and
catch a glimpse of the Paralympic torch
as it travels on the DLR today.
On the subject of the Games, Mo
Farahs talents appear to know no
bounds. The double gold medallist has
signed up to promote the cause of
Virgin, helping push up the pace of Sir
Richard Bransons online crusade to
keep his hands on the West Coast rail
route. An online petition calling for the
beardy one to have another crack at
running the trains passed 85,000
signatures last night within sprinting
distance of the 100,000 mark needed to
trigger a debate in parliament.
Theres still a week left to bid for
City Wenlock, the pinstriped
statue being auctioned off after the
Olympics to raise money for Mayor's
Fund for London. The Olympic mascot
has a price to match his Square Mile
credentials bids had reached 16,694
last night but cheaper lots include
swimming trunks signed by diving star
Tom Daley, at just over 100. To bid,
visit memorabilia.london2012.com
FRIDAY 24 AUGUST 2012
Hugh Vyvyan with two
members of the Tulip club
BANK-BOTHERING Labour MP John
Mann won few friends in the City
establishment with his robust
denunciations of Bob Diamond
during Julys hearings into
Barclays abuse of the Libor rate.
But the star of the Treasury
select committee (who describes
himself in press releases as
Outspoken Labour MP John
Mann) yesterday revealed that he
had a brush with death after his
car was sabotaged in London.
Mann drove 200 miles back to his
Worksop constituency without any
nuts holding the wheels onto his
car and struggled to control the
vehicle after he turned onto
winding country lanes. The
consequences of this madness do
not bear thinking about, he said.
I and others could easily have been
killed.
Mann says he believes it was a
bodged theft, rather than a threat.
But its not the first time he has
been targeted in May his wife
received a dead bird in the post.
Bob Diamonds fiercest critic
threatened by act of sabotage
Saracens won 61-17
England wing Chris Ashton scored a
hat-trick of tries
SHARES in London-listed Russian
gold miner Petropavlovsk slumped
15.97 per cent in trading yesterday,
as it posted a 91 per cent drop in
profit for the first half of the year.
Interest payments, depreciation and
foreign exchange costs were behind
the sharp profit slump to $11m
(6.93m), from $108.2m last year.
Net debt ballooned to $1.12bn from
$787m in the six months to 30 June,
on the back of increased investment
in new mines.
The $106.9m depreciation charge,
up 132 per cent, was put down to the
work on the mines commissioned
last summer.
Three operations went online dur-
ing this quarter, at the Russian
Pioneer, Albyn and Malomir lines. It
was this new investment that over-
stretched the balance sheet,
Petropavlovsk said.
Capital expenditure came in at
$262m for the first half, and
Petropavlovsk said there will be fur-
ther capital investment in the
second half.
The miner said yesterday that inter-
est rate costs will accelerate in the
second half of the year, consistent
with an increase in net debt, which is
Petropavlovsk
rocked by 91pc
drop in profits
BY CATHY ADAMS
expected to peak in mid-2013.
Chairman Peter Hambro said yester-
day: We have a big charge for depre-
ciation the moment we start
operating new facilities. Were in an
investment-heavy period.
Hambro added that second half
profitability would be better than the
first half.
Gold production during the second
half is expected to be around 420,000
ounces, a 50 per cent year-on-year
uplift thanks to the full expansion of
two of Petropavlovsks gold sites. It
reiterated its full-year production tar-
get of 700,000 ounces.
Cailey Barker of Numis Securities
said: While the operations continue
to perform well, the miss on the
financial extras is likely to disap-
point.
IN BRIEF
Costain boosted by infrastructure
n Infrastructure profits have buoyed
engineering and construction group
Costain, as it posted a 16 per cent
increase in profits for the first half of the
year. Profits in its infrastructure
division, which includes big-ticket
contracts with Crossrail and the London
Bridge redevelopment, were up 91 per
cent year-on-year.
Qatar increases holding in Xstrata
n Qatar Holdings, the second-largest
shareholder in Xstrata after Glencore, has
bought nearly 24m of shares in the
takeover target. It takes its holding in
Xstrata to more than 12 per cent. Qatar
has been raising its stake in the miner
since July, and formerly owned just less
than 11 per cent of the company. The
chief executive of Glencore said earlier
this week that the $30bn bid for Xstrata
was not a must-do deal.
Premier Oil posts record results
n FTSE 250 exploration and production
firm Premier Oil posted pre-tax profits of
$194.6m (122.5m) for the first half yes-
terday, up from $32.5m the year before.
The results were flattered by acquisitions
and new ventures in Vietnam, Iraq,
Norway and the UK. Average production
rose 58 per cent year-on-year, hitting
58,400 barrels of oil a day on average.
FRIDAY 24 AUGUST 2012
11
NEWS
cityam.com
Kazakhmys slashes dividend
payout as metal prices tumble
FIRST-HALF profit at Kazakhmys
slumped by nearly 65 per cent, as
the copper miner slashed its
dividend by almost the same
amount.
Profit for the six months to 30
June came in at $307m (193m),
down from $866m the year
previously.
It is the latest miner to be hit by
the drop in commodity prices,
with weaker pricing for copper,
silver and zinc concentrate
hitting profits at the Kazakhstan-
BY CATHY ADAMS
focused miner. High labour costs in
the Middle Eastern country and a
delayed shipment to China also
weighed on profits.
The dividend has been cut by 63
per cent to three cents a share,
reflecting the lower profits within
the group, said Kazakhmys. It also
blamed increased capital
investment requirements for the
dividend cut.
Kazakhmys said it was on track to
meet its full-year target of between
285 and 295 kilotons of copper.
Chief executive Oleg Novachuk
said yesterday: Uncertainty prevails
in the global markets, but we are
encouraged by the continuing
demand from our customers.
Kazakhmys PLC
17Aug 20Aug 21 Aug 22Aug 23Aug
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23Aug
Petropavlovsk PLC
17Aug 20Aug 21 Aug 22Aug 23Aug
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460
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440
p
394.00
23Aug
SOUTH Africans held a memorial service yesterday at a mine where police shot dead 34
strikers. Some 500 people crammed into a marquee pitched at the platinum mine, near
what has been dubbed the Hill of Horror where police opened fire on striking miners.
SOUTH AFRICA MOURNS MINING DEAD
G
E
T
T
Y
LENDING to businesses was squeezed
once more in July, according to a
report released yesterday by the
British Bankers Association (BBA).
Lending to non-financial compa-
nies decreased by over 500m in July,
the BBA said, driven by big declines
in loans to the retail, catering and
hospitality and real estate sectors.
This decline caps off a total contrac-
tion of 9.6bn in borrowing by non-
financial firms over the past six
months, something that the BBA
puts down to a lack of demand.
Companies are reluctant to bor-
row or invest new funds while
domestic and international trading
activities remain subdued or uncer-
tain, said David Dooks at the BBA.
Analysts agreed that firms were
holding out for a better economic cli-
mate, but suggested this approach
might cost them in the long term.
Businesses have proved resilient in
this tough economic climate, but
Business loans
plunge as firms
delay investing
BY BEN SOUTHWOOD
they cannot afford to stand still if
their future growth is to be secured,
firms need to grasp investment
opportunities now, said Stephen
Pegge at Lloyds.
But small businesses blamed banks
for restricting borrowing, said a
YouGov report, exclusively published
by City A.M.
Some 35 per cent of small and medi-
um enterprises said negotiating loans
had got harder over the past three
years, while just four per cent said it
was easier.
Olympic feelgood factor fails to
lift gloom on British high street
GLOOM on the high street has
continued in August, a leading
survey revealed yesterday, with
retailers becoming even more
downbeat over business prospects
for the next three months.
Despite an uplift in morale from
sunny weather and the London
2012 Olympic Games, retail sales
were virtually flat compared to the
same time last year.
The survey, published by the
Confederation of British Industry
(CBI), showed that nearly one third
BY JULIAN HARRIS (31 per cent) of retailers reported
lower sales volumes this month
than in August 2011.
Only 27 per cent reported a
greater volume of sales, leaving a
disappointing rounded balance of
minus three per cent.
Although this summers events
created a mood of celebration across
the nation, these figures would
suggest this positivity did not
extend to the high street, said
Judith McKenna, chief operating
officer of Asda.
However, although retailers
expect the overall business situation
to worsen in the coming three
months, they still expect sales to
rise year-on-year in September.
A net balance of 17 per cent of
retailers said they expect their
overall business situation to
deteriorate in the next three
months, while the number of
people being employed in the sector
also fell.
A net balance of 25 per cent of
retailers said their headcount was
down compared to the same time
last year, while a net balance of 12
per cent expect it to fall further
next month.
MANUFACTURING growth in the US edged up this month, providing a modest boost to
President Barack Obama, although labour market data released yesterday was mixed.
Markits purchasing managers index (PMI) moved to 51.9 from 51.4 last month, yet
seasonally adjusted initial unemployment claims rose 4,000 to 372,000. And house
prices edged up 0.7 per cent in June, a separate survey revealed.
US FACTORY GROWTH INCHES UPWARDS
Lending to businesses contracts yet again
Jul 2009 Jul 2010 Jul 2011 2012
-8
-4
0
4
8
12 %
Personal deposits
Mortgages
Unsecuredlending
Non-financial companies
CHINAS factories have been hit
again this month, with new export
business declining sharply,
according to a purchasing
managers index business survey
released by HSBC and Markit
yesterday.
The early flash figure dived to
a nine-month low of 47.8 for the
August survey, as Chinas
apparently inexorable boom comes
up against problems.
Chinas manufacturing hits the
rocks as slump knocks exports
BY BEN SOUTHWOOD
The number is down from Julys
figure of 49.3, which was close to
the 50 level that indicates no
change in activity.
Output, new export orders and
employment are all contracting,
prompting some analysts to suggest
intervention.
To achieve the stated policy goal
of stabilising growth and the jobs
market, Beijing must step up policy
easing to lift infrastructure
investment in the coming months,
said Hongbin Qu at HSBC.
FRIDAY 24 AUGUST 2012
12
NEWS
cityam.com
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c
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a
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Join us for the London Night
Hike Friday 21 September 2012
Enjoy exclusive access to the citys top
architectural spaces, as well as food,
drink, live music and more.
maggiescentres.org/nighthike
in partnership with
Open
City
Open House
London
2012
IN BRIEF
Public funding of trains falls
n The taxpayer propped up Britains
rail network to the tune of 3.9bn last
year, though this has dropped slightly
from 3.96bn a year ago and is down
from a peak of 6.3bn in 2006, the
Office of Rail Regulation revealed
yesterday. However, some train
operating companies handed back part
of their grants, meaning the state
clawed back 133m in the year.
JPMorgan accused hires lawyer
n The trader at the centre of the
criminal investigation surrounding
JPMorgan's $5.8bn trading loss has
hired a lawyer in Paris, sources said
yesterday. Bruno Iksil, a French citizen
and a former London-based trader in
JPMorgan Chase & Cos chief
investment office, is under scrutiny for
trades he made in an illiquid market for
credit products that resulted in the
bank's losses. Iksil became known in
the derivatives market as the London
Whale for the size of the positions he
took.
Fed Bank sells last AIG assets
The Federal Reserve Bank of New York
has sold its remaining assets of insurer
American International Group (AIG),
the bank said yesterday. It sold
securities for a gain of $6.6bn (4.2bn).
FRIDAY 24 AUGUST 2012
13
US stocks drop
on weak data
U
S stocks fell yesterday as
expectations for quick
stimulus action from the
Federal Reserve faded and
Chinese and Eurozone data pointed
to a stalling global economy.
Each of the 10 major S&P sectors
finished in negative territory, with
the economically sensitive
materials sector the worst
performer, down 1.7 per cent.
Minutes published from the
latest Federal Reserve meeting
indicated the central bank might
be ready for another round of
stimulus for the economy,
supporting equities on Wednesday.
The Dow Jones industrial average
dropped 115.30 points, or 0.88 per
cent, to 13,057.46. The Standard &
Poors 500 Index lost 11.41 points,
or 0.81 per cent, to 1,402.08.
Meanwhile the Nasdaq Composite
Index fell 20.27 points, or 0.66 per
cent, to 3,053.40.
BESTof theBROKERS
CITY
NEW YORK
REPORT
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
Montagu Evans
The property consultancy firm
has appointed Jonathan Manley
as a partner in its professional
services team. He has over 20
years experience in the industry,
and was previously a partner at
King Sturge, and a director at
Jones Lang La Salle. In his new
role, Manley will focus on
expanding Montagu Evanss
market presence in lender valuation markets.
Barings Asset Management
Christopher Mahon has been appointed to the role of
director of asset allocation research at the investment
management firm. He joins from Momentum Global
Investment Management, where he was head of investment
strategy and lead portfolio manager for its multi asset
funds. Mahon has over 13 years experience in financial
markets, and will report to the head of Baringss multi asset
group Percival Stanion.
RBC Wealth Management
The Royal Bank of Canadas wealth management division
has announced several changes to its senior leadership
team. Paul Patterson, currently head, global trust becomes
deputy chair of ultra high net work international. Based in
London, he succeeds Michael Lagopoulos, who is retiring.
Stuart Rutledge, currently head of global wealth services,
strategy and transformation, replaces Patterson in his
previous role.
Meyer Bergman
The real estate investment management firm has
announced two new analyst appointments. Hannah Warton
joins from QIC Global Real Estate Group, where she was a
property management analyst. Kevin Kong joins from
Citigroup, where he worked as an analyst in its real estate
division.
Cape
Leslie Van de Walle has been appointed non-executive
director of the resource-focused support services firm. He is
a former director at Shell International Petroleum, and
additionally served as chief executive of United Biscuits
between 1999 and 2000. Van de Walle was also non-
executive director of Aegis between 2003 and 2009, and of
Aviva between 2009 and 2012.
Shanta Gold
The African-focused gold mining company has appointed a
new chief executive. Mike Houston was formerly chief
executive of Zimplats Holding, the platinum mining
company. He also previously held senior management roles
at Anglo American, where he was responsible for running
several of its Zimbabwe mines.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
in association with
LONDONREPORT
B
RITAINS top share index inched
higher yesterday, steadying after
sharp falls in the previous session,
underpinned by a recovery among
heavyweight miners on expectations of
fresh global stimulus measures from
central banks.
Mining stocks tracked firmer copper
prices, which were up over 1 per cent at a
one-month high as the demand picture for
metals improved on the stimulus hopes.
Speculation of further monetary action
from top metals consumer China was
heightened after the countrys manufactur-
ing sector PMI data came in at the lowest
level since last November.
Investors also saw the minutes from the 31
July 31- 1August US Federal Reserve policy
meeting, published after the London close
on Wednesday, as suggesting the Fed is like-
ly to launch a third quantitative easing pro
At the close, the FTSE 100 was up 2.40
points, or 0.04 per cent, at 5,776.60 after a
topsy-turvy session with thin volumes.
West Africa-focused gold producer
Randgold Resources was the top FTSE 100
riser, up 4.2 per cent, while Kazakhmys was
the top FTSE 100 faller, down 3.4 per cent,
after it reported a steep fall in profits.
FTSE buoyed by hopes of
Scction 17 liccnsing Act 2003
AppIication for a ncw Prcmiscs liccncc
Notce s gven thut N Cuterng und Restuurunt Lmted hus
upped to the Cty o London on 2l August 20l2 or u nev
premses cence to use: 72-74 Lomburd Street, London, lC3V
9AY, to be knovn us Hspunu Restuurunt or the provson o:
Recorded Musc (l) und Suppy o Acoho (M) Monduy to
Sunduy ncusve 07.30 - 02.00. lerormunce o Dunce (C)
Monduy to Sunduy ncusve l0.00 - 02.00. Lve Musc (l)
Monduy to Sunduy ncusve l2.00 - 02.00. luctes or
Duncng (}) Monduy to Sunduy ncusve l8.00 - 02.00. Lute
Nght Rereshment (L) Monduy to Sunduy ncusve 23.00 -
02.00. Hours lremses ure open to the lubc (C) Monduy to
Sunduy ncusve 07.30 - 03.00. lus seusonu vurutons. A
record o ths uppcuton s hed by the Cty o London und cun
be veved by members o the pubc onne by vstng
vvv.ctyoondon.gov.uk or by uppontment ut the oces o
Cty o London Lcensng Authorty, \ubrook \hur, 78-83
Lpper 1humes Street, London, lC3R 31D.
Any person vshng to muke u representuton n reuton to ths
uppcuton must gve notce n vrtng to the Lcensng
Authorty ut the uddress shovn ubove, gvng n detu the
grounds o obecton by l8th September 20l2.
1he censng uuthorty must receve representutons by the dute
gven ubove. 1he censng uuthorty v huve regurd to uny
such representuton vhen consderng the uppcuton. lt s un
oence, under secton l58 o the Lcensng Act 2003, to
knovngy or reckessy muke u use stutement n or n
connecton vth un uppcuton or premses cence und the
muxmum ne on beng convcted o such un oence s 5000.
global stimulus
British Land Company PLC
17Aug 20Aug 21Aug 22Aug 23Aug
537.50
542.50
547.50
540.00
545.00
550.00
552.50
538.00
23 Aug
p
BRITISH LAND
Jefferies has downgraded a whole pack
of retail estate investment trusts,
stating that they are no longer
excessively cheap. British Land is
moved from Buy to Hold despite
the target price being held at 552p.
Low vacancy rate and broadly rack-
rented portfolio combine to constrain
organic earnings growth, it said.
Elekta AB
17Aug 20Aug 21Aug 22Aug 23Aug
332
330
336
340
334
338
342
344
329.90
23 Aug
SEK
ELEKTA
UBS has downgraded the Swedish
health company from Buy to
Neutral while moving its target price
to SKr345.00 from SKr375.00. UBS
now sees the stock as fairly valued,
citing recent outperformance and
currency shifts for the downgrade. The
shares are up 8.7 per cent this month
with Elekta reporting on 4 September.
Greencore Group PLC
17Aug 20Aug 21Aug 22Aug 23Aug
79.00
78.50
80.00
81.00
79.50
80.50
81.50
82.00
81.00
23 Aug
p
GREENCORE
Numis has upgraded the foods supplier
from Hold to Add, describing it as
a shrewd UK ready meals purchase.
The firm has its target price edged up
to 90p by Numis, from 85p previously.
There is considerable logic behind
Greencores acquisition of International
Cuisine, Numis says, enthusing that it
could prove highly value accretive.
J SAINSBURY has become the latest
player to enter the on-demand film
streaming market, teaming up with
US technology firm Rovi to launch
an online rental service to rival Skys
Now TV, Netflix and Lovefilm.
The supermarket, which also
started a music download service
earlier in the year, says it will offer
films on a pay-per-view basis on the
same day they are released on DVD.
Tesco entered the market last
year when it bought blinkbox, a
similar offering. The supermarkets
Sainsburys teams up with Rovi
to join internet movie market
BY JAMES TITCOMB
have seen their strength in DVD
sales threatened by the rise in
digital consumption. Lovefilm and
Netflix boast 2.5m subscribers
between them, although
Sainsburys is targeting a separate
market by offering film streaming
on a pay-per-view basis. The service
will launch later in the year on
computers before coming to other
platforms.
Releasing films on the same day
as their DVD launch is likely to
hand Sainsburys an advantage over
Netflix and Lovefilm, whose
releases are delayed by months.
SCOTTISH broadcaster STV was
boosted by its production and digital
arms in the first half of the year, the
company said yesterday, as it posted
an eight per cent rise in pre-tax
profits to 7m on 47.6m turnover.
STV also announced a tie-up with
ITV which will see it pay a flat fee
for use of ITV programmes and a
deal to produce a new celebrity
cooking show for BBC.
Chief executive Rob Woodward
called STVs production division a
key strategic growth area.
STV profits up
on new deals
BY JAMES TITCOMB
DASHBOARD
S
UMMERS lease is drawing to
a close again. With less than
a month until the autumnal
equinox on 22 September,
were running out of time to
complain about the disappointing
weather or attempt to cook burgers
in one anothers backyards. Or,
from another point of view, theres
four weeks left before the summer
of 2012 is over: what shall we do
with all that time?
Two thousand years ago, Lucius
Anneus Seneca, the Roman
philosopher who tutored the
Emperor Nero, wrote to his friend
Paulinus about this dilemma. His
essay, known today as On The
Shortness of Life, is a short, brilliant
argument for the latter school of
T
HE coalition has identified the
NHS as the UKs next big
export. We have some form
here: internationally renowned
brands like the Royal Marsden
Hospital in Chelsea, Moorfields Eye
Hospital and Great Ormond Street
have foreign campuses in the Middle
East with similar tie-ins to some of
our leading universities.
And this outward-looking approach
is to be encouraged. The global market
for healthcare is already worth tril-
lions of dollars, and it will only
increase in size. The successful nations
will be those that can export their
healthcare services and not be forced
to buy them from other countries.
Hospitals in America, Europe, India
and Australia are selling their expert-
ise across the world and the NHS is
quite right to try to get a slice of the
action.
But we also need to be realistic. The
NHS is not the envy of the world any-
more, and there wouldnt be buyers
for many of our unreformed services.
Many of the most exciting healthcare
pioneers are abroad. These innovators
Spread betting, CFDs and
Trade today at www.cityindex.co.uk
FACT OF
THE DAY
Of the last 10 quarterly UK GDP readings, only once has
the preliminary figure stayed unchanged by the time the
final reading has been confirmed.
cityam.com/forum
Hospitals in the US,
Europe, India and
Australia are already
selling their expertise
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.

14
FRIDAY 24 AUGUST 2012
THOMAS CAWSTON
The NHS must look outwards if its
to become the envy of the world
have performed tricks right out of the
Harvard Business School playbook,
reminding us that high quality afford-
able healthcare isnt trademarked by
any one country. As well as exporting,
the NHS needs to import.
Browsing the global marketplace of
healthcare innovations will quickly
reveal the secrets of better for less.
While NHS hospitals seek to provide
every service to patients under one
roof, the best hospitals in the world
specialise in solving just one medical
problem. A trip to India will uncover
the Narayana heart hospital. This
1,000 bed heart specialist performs 35
surgeries a day on average, and a max-
imum of 60 a day in its 24 operating
theatres. Practice makes perfect: such
high volumes lower costs and improve
outcomes. Narayanas cardiac surgery
operates at one tenth of the cost of
NHS hospitals, with clinical outcomes
at the same standard, if not better.
Another lesson the NHS should
quickly take on board is that modern
and rigorous management is essential
to drive up performance. A proven
method for innovative hospitals has
been to rank staff to harness the com-
petitive nature of doctors. The
Cleveland Clinic in Ohio publishes out-
comes data for every major disease
area, which allows the hospital to set
benchmarks for staff and creates the
peer pressure to make better doctors.
Unlike the NHS, where doctors still
rule the roost, these hospitals also
hold employees to account. Doctors at
the Cleveland are on a one year con-
tract: if theyre not up to the job, they
walk.
Providing better care for patients
with chronic diseases, like diabetes or
Alzheimers, will be the central mis-
sion of the NHS in the years to come.
New ways of organising services are
sorely needed. Again, there is much to
learn from the rest of the world. In the
US, Kaiser Permanente is a household
name for high quality, joined-up care.
By measuring and monitoring
patients closely, with doctors on stand-
by around the clock, they are much
better than we are at preventing peo-
ple from becoming ill and at giving
people the best personalised treat-
ments if they do get ill.
Another American success story can
be found in Rhode Island, where a pre-
viously fragmented and confused
assortment of mental health services
meant patients often fell through the
cracks and ended up in the emergency
room the worst place for them. A pri-
vate company, Beacon Health
Strategies, was brought in to get things
organised. Working with the estab-
lished providers, they coordinated
services outside the hospital and in
one year the cost of hospitalisations
for children was cut by 20 per cent.
With healthcare costs set to rise inex-
orably in the years ahead, the NHS can-
not afford to ignore the lessons from
abroad. As the Olympics got under way
the chancellor announced that
Britain has always been a country
that is open to the world. In hosting
the Olympic Games, we are showcas-
ing that openness. However, the NHS
has remained obstinately closed to
fresh thinking and innovative models
from the outside. Opening up the NHS
to competition would give patients
new choices and the chance to
demand excellent services that are
shaped around their needs.
Better, cheaper healthcare is the next
big global industry. If the NHS wants
to be the envy of the world, it will have
to start learning from the best in the
world.
Thomas Cawston is research director at the
independent think tank Reform.
thought. Its message can be
summed up as: life isnt short.
So it is the life we receive is not
short, but we make it so, nor do we
lack time, but we waste it. A fortune
can be lost in a night if it comes
into the hands of a bad owner,
while wealth, however limited,
grows if the capital is carefully
invested. Our life is long enough for
anyone who uses it well.
Senecas bold assertions turn the
table on our comfortable
assumptions that scarcity of time is
a problem we inherit. Instead, he
sees it as a moral failing that we
bring upon ourselves: Why blame
Nature? Shes everyones angel
investor. Life, if you spend your days
right, is enough to make you rich.
But one woman is consumed by
greed she cant satisfy, another
slaves away completing jobs that
are pointless; one man drowns his
passion in claret, another cant get
out of bed.
Those two quotes, admittedly
somewhat freely translated, reveal
another surprising side to Senecas
argument his return to the
metaphor of finance throughout
the essay. Seneca was a wealthy
man himself, who knew the value
of money. He argues that we have a
mental blind spot when it comes to
our time, that we waste it as we
never would our fortunes. We
understand that money is scarce
and has to be put to its best uses.
We understand that there are
property rights in money, and we
have the right to spend our own
money as we see fit. But, says
Seneca, most of us fritter away our
limited supply of days like the
worst kind of spendthrift
government. Worse still, were
practically communist in the way
we leave the disposal of our own
time to the whims of others: No
one asserts his claim to himself,
everyone is wasted for the sake of
another.
Its no surprise that Senecas
words continue to have resonance
in our world of time-poor, always-on
lives. Tim Ferriss, the author of the
bestselling advice book The Four-
Hour Workweek, admits that On
The Shortness of Life is one of his
favourite books. Nassim Taleb of
Black Swan fame is another Seneca
fan. For City-dwellers readjusting to
the rigours of work after the long
holiday, the ancient philosopher is
a useful touchstone to remind us to
treat our precious time with the
same respect we give to money.
Marc Sidwell is managing editor of
City A.M.
THE LONG
VIEW
MARC SIDWELL
Life isnt short: But weve learnt to squander our time like spendthrifts
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15
Work experience
[Re: Rigour in GCSEs is essential but we
need students fit for business, yesterday]
While its important to provide children with
work experience, there must be guidelines
to ensure it is meaningful. In my last year of
secondary school, I was allocated a two
week stint in a local supermarket, while I
watched my friends enjoy paid work at law
firms. What did I learn from this experience?
Nothing. I skipped the last day and nobody
questioned it. Its not enough to simply tick
the work experience box, nor is it right to
give children a false idea of their future.
Partnerships with business need improving,
and the standard of experience offered must
be more uniform to give school-leavers real
insight to what their future holds.
HaydenLloyd
Peter Searle makes a good case for using
education to prepare young people for
work. But he misses a broader point. Yes,
fundamental skills like numeracy and
literacy are important to employers. But
teaching students how to become good
scientists, or innovative engineers, or
cultural pioneers wont be accomplished
through some uniform, national scheme.
Education is often tediously described as
lighting a fire rather than filling a bucket.
Searles scheme proposes too much bucket-
filling, and too little ignition. We need to
provide young people with the basic tools
and curiosity to succeed in any area of our
diverse economy not simply to become
identikit employable clones.
SophiePurdy
B
AD borrowing figures have
increased the pressure on
the government to change
its course, abandon austerity
and crank up new public
infrastructure projects. Indeed, with
a cabinet reshuffle expected in the
next few weeks, a number of people
have been saying that David
Cameron should shuffle his
chancellor, George Osborne, off to
the backbenches.
Neither is a sensible recovery plan.
Osborne has at least committed the
UK government which of course
includes a large number of Liberal
Democrats who are understandably
squishy about the idea of public
spending cuts to getting the public
deficit under control. Even if this is
turning out to be a hard job, it is the
right message and it is why the UK
can borrow more cheaply than the
mighty United States. Dropping
Osborne now would create uncer-
tainty that would scare off investors.
As for more infrastructure spend-
ing, paying for the over-indulgent
investment of the Brown years
the vast school and hospital building
programmes was one of the things
that got us into our present mess.
We were investing money that we
did not have. We need to learn from
that mistake, not repeat it.
Where would the extra money for
infrastructure spending come from?
The government could raise taxes,
but the tax burden is already crip-
pling both businesses and their cus-
tomers. It could print money, but
that policy simply undermines con-
fidence in sterling and distorts mar-
kets so that people make a greater
number of mistaken investments.
Or the popular solution it could
just borrow the money. This is the
most bizarre idea of all. Most ordi-
nary householders would see the
folly of that solution in respect of
TOP TWEETS
Having lost a six figure sum with Polly Peck
and its sister companies in the 1990s, Im
happy with Asil Nadirs 10 year jail sentence.
@Meliden
The fall in GCSE results for the first time in
their history marks the happy end of grade
inflation.
@thejamesmax
The government should stop fobbing off
tough economic decisions on the Bank of
England its now defending QE.
@tonyrossmcmahon
SSE puts its energy prices up. We cant have
another winter of tweaks to the energy mar-
ket when radical reform is needed.
@WhichConvo
As SSE raises its energy prices by 9 per cent,
is the firm right to blame UK green policies?
YES
So long as the government sticks to radical EU targets for the
energy sector particularly for a drastic increase in the use of
renewable energy domestic and industrial consumers will
continue to face punishing increases in prices. Attempts to
reassure investors with expensive commitments like the carbon
price floor will ultimately backfire, as they know there are risks to
the policies on which they are relying. The fiscal adjustment and
poor economic growth are already putting pressure on living
standards. There are limits to what families, and the politicians
who need their votes, will stomach. With other countries not
imposing anything like the same burdens on their industries, and
the UK responsible for well under two per cent of global
emissions, there is little to show for the sacrifice. This country
urgently needs a more affordable climate policy.
Matthew Sinclair is chief executive of the TaxPayers Alliance.
Matthew Sinclair
NO
Jim Woods
SSEs announcement has raised questions of whether the
transition to clean energy is too expensive. It feels like a question
of how good can we afford to be?. But are the underlying
assumptions valid? A recent Green Monday business survey
showed major energy users expect the price they pay for energy to
increase by 6 per cent over the next two years, which they expect
to be higher than competitor economies. But when asked about
the influence of underlying factors, 77 per cent attributed it to
fossil fuel prices, versus 23 per cent and 24 per cent for carbon
policies and transmission costs. In an era of rising commodity
prices, businesss prime concern is the UKs exposure to imported
fossil fuel prices, exacerbated by an energy crunch arising from the
uncertainty over the governments desired generating capacity. In
short, that points to too little policy rather than too much.
Jim Woods is a director at Green Monday.
RAPIDresponses
New infrastructure
cannot dig us from
our economic hole
their own finances. How can econo-
mists seriously suggest these things?
And when would we benefit from
all this infrastructure spending?
Business people say they want
things like new roads and rail links
so that business costs are reduced,
which might help them to grow. But
infrastructure spending is a long-
term business. Planning permission
for Terminal 5 at Heathrow took
longer than the first and second
world wars put together. Even mod-
est by-pass plans can take almost as
long. By the time businesses could
expect to get any benefit from that
sort of thing, most would have gone
bust anyway.
Yes, government spending on con-
struction would boost employment
in the construction sector, for a time.
But it would destroy even more jobs
elsewhere, and more permanently.
The money has to come from some-
where, either from todays taxpayers
or tomorrows through borrowing,
or by cheating savers through infla-
tion.
People are trying to pay down debt,
and we have to let that process work
out. But we also need to boost
growth by making it easier for peo-
ple to do business. That means a rad-
ical simplification of the tax system,
cutting back higher tax rates on indi-
viduals and businesses, and getting
really serious about cutting bureau-
cracy and regulation. And to do it
right now.
Eamonn Butler is director of the Adam
Smith Institute.
FRIDAY 24 AUGUST 2012
EAMONN BUTLER
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FRIDAY 24 AUGUST 2012
cityam.com
16
TV LISTINGS
T
E
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S
T
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IN WITH THE FLYNNS
BBC1, 9PM
The couple throw an anniversary party
for Carolines parents. Meanwhile,
Kevin has an awkward reunion with a
girl he last met at a funeral.
PARADES END
BBC2, 9PM
Drama, based on Ford Madox
Fords novels set in the second
decade of the 20th century, starring
Benedict Cumberbatch.
THE BACHELOR
CHANNEL5, 11.15PM
The three remaining contestants head
to the Bahamas, where they each get
to spend time alone with Spencer
Matthews on an individual date.
BBC1
SKY SPORTS 1
7pmPremier League Preview
7.30pmLive Football League
10pmFantasy Football Club 11pm
Premier League Preview11.30pm
Football League 1amFantasy
Football Club 2amPremier League
Preview2.30amFootball League
4amFantasy Football Club 5am
Premier League Preview
5.30am-8amLive ITM Cup
Rugby Union
SKY SPORTS 2
7pmTest Cricket 8pm
International One-Day Cricket
10pmWWE: Smackdown 12am
WWE: Bottom Line 1am
International One-Day Cricket
3amIAAF Athletix 3.30amATP
Tour Uncovered 4amTight Lines
5amIAAF Athletix 5.30am-6am
FIFA Futbol Mundial
SKY SPORTS 3
7pmLive PGA Tour Golf 11pm
European Tour Golf 1amPGA Tour
Golf 4amSuper Leagues
Supermen 4.55am-6amLive Test
Cricket
BRITISH EUROSPORT
4.45pmLive Snooker 8pmLive
Boxing 9.55pmMotoGP
10.55pm-12.30amWTA Tennis
ESPN
7pmESPN at the Festival 7.15pm
Live Bundesliga 9.30pmFrench
Football 11.15pmESPN Kicks:
Brasileirao 11.30pmESPN FC
Press Pass 12amPremier League
Preview12.30amLive Major
League Soccer 3amMMA Live
3.30amESPN at the Festival
SKY LIVING
7pmSing Date 8pmBritain &
Irelands Next Top Model 9pm
Nikita 10pmCriminal Minds 11pm
Mount Pleasant 12amBones 1am
Supernatural 1.50am Criminal
Minds 2.40amMedium3.30am
Bones 4.20amAmericas Next
Top Model 5.10am-6amCriminal
Minds
BBC THREE
7pmDont Tell the Bride 8pmThe
Hives and Bombay Bicycle Club @
Reading 9pmThe Cure Live @
Reading 10pmCelebrity B****slap
News 10.30pmEastEnders 11pm
Bad Education 11.30pmThe Cure
and the Maccabees @ Reading
1amThe Revolution Will Be
Televised 1.30amBad Education
2amCelebrity B****slap News
2.30amThe Premier Leagues
Most Amazing Moments
4.30am-5amThe Revolution Will
Be Televised
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmThe Big Bang
Theory 8.30pm2 Broke Girls
9pmFILMDie Hard 2 1990.
11.20pmRevenge 12.20amThe
Big Bang Theory 1.20amScrubs
1.55amHow I Met Your Mother
2.20amRules of Engagement
2.40amDesperate Housewives
3.25am90210 4.05amGreek
4.50am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmStorage Wars 9pm
American Pickers 10pmTop Shot
11pmStorage Wars 11.30pm
Pawn Stars 12amAmerican
Pickers 2amTop Shot 3am
Swamp People 4amThe Last
Days of World War Two 5am
Pawn Stars 5.30am-6am
American Restoration
DISCOVERY
7pmBorn Survivor 8pmAuction
Hunters 9pmMan, Woman, Wild
10pmAmerican Chopper: Senior
Versus Junior 11pmExtreme Drug
Smuggling 12amMan, Woman,
Wild 1amAmerican Chopper:
Senior Versus Junior 2amAuction
Kings 3amAmerican Chopper:
Senior Versus Junior
3.50amWheeler Dealers 4.40am
Born Survivor 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmBirth Days 8pmI Didnt
Know I Was Pregnant 10pm
Supernanny US 11pm
Embarrassing Bodies 12amI
Didnt Know I Was Pregnant 1am
Supernanny US 2am
Embarrassing Bodies 3amDr G:
Medical Examiner 4amLabour
and Delivery 5am-6amA Baby
Story
SKY1
7.30pmRaising Hope 8pmThe
Simpsons 9pmStella 10pmAn
Idiot Abroad 11pmDog the
Bounty Hunter 12amRoss Kemp:
Extreme World 1amThe Good
Guys 2amSun, Sea and A&E
2.55amCaprica 3.45amSecret
World of Magic 4.35amAirline
5.05am-6amSell Me the Answer
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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&
C
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmA Question of Sport:
Extra Time: BBC News
8pmEastEnders
8.30pmMiranda
9pmCHOICE In with the Flynns
9.30pmMrs Browns Boys 10pm
BBC News 10.25pmRegional News
10.35pmWould I Lie to You?
11.05pmCome Fly with Me
11.35pmThe National Lottery
Friday Night Draws 11.45pm
EastEnders: Weatherview1.40am
Sign Zone: The Hairy Bikers
Bakeation 2.40amSign Zone: Real
Rescues 3.25am-6amBBC News
6pmEggheads
6.30pmCelebrity MasterChef
7pmEscape to the Country
8pmMastermind
8.30pmGardeners World
9pmCHOICE Parades End
10pmThe World of Parades
End
10.30pmNewsnight
11pmThe Book Review Show
Special with Ian McEwan:
Weather
11.50pmFILM2 Days in Paris:
Romantic drama, starring Julie
Delpy. 2007.
1.25amBBC News 3.30am-6am
Close
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmThe Food We Eat: Tonight:
8.30pmCoronation Street
9pmCorrie Goes to Kenya
10pmITV News at Ten
10.30pmLondon News
10.35pmFILMWe Own the
Night: Crime drama, starring
Joaquin Phoenix. 2007.
12.40amThe Store;
ITV News Headlines
2.45amFILM Columbo: Murder by
the Book 1971. 4.05am-5.30am
ITV Nightscreen
6pmThe Simpsons: Grampa
becomes a matador.
6.30pmHollyoaks
7pmChannel 4 News
7.25pm4thought.tv
7.30pmJon Snows Paralympic
Show
8pmCome Dine with Me: Four
Paralympians take turns as
dinner-party hosts.
9pm8 Out of 10 Cats Does
Countdown
10pmIdris Elbas How
Clubbing Changed the World
12am-6amHouse Party: Live
six-hour dance music event,
hosted by Charlie Sloth.
6pmMonkey Life
6.30pm5 News at 6.30
7pmCricket on 5:
5 News Update
8pmIce Road Truckers:
Deadliest Roads: 5 News at 9
9pmCelebrity Big Brother:
Live Eviction
10.30pmCelebrity Big
Brothers Bit on the Side
11.15pmCHOICE The Bachelor
12.15amSuperCasino
3.55amMotorsport Mundial
4.20amHouse Doctor 4.45am
Michaelas Wild Challenge
5.10amNicks Quest 5.35am-6am
Nicks Quest
FRIDAY 24 AUGUST 2012
17
GAMES
cityam.com
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
24 16 6
21 15
39
8 6
10 32
11 29
38 11
20 23
44
13 26
3 12 9
15
10
5
22
40
13
28
24
22
34
17
11
36
27
30
39
7
7
12
17
ACROSS
2 Industry concerned
with aviation,
satellites, etc (9)
6 Jewish spiritual
leader (5)
7 Bottomless gulf (5)
9 Roman god of
the sun (3)
10 Twilled fabric (5)
12 Language of
ancient Rome (5)
14 Have actual being (5)
17 Peak of a cap (5)
19 Nickname of
US president
Eisenhower (3)
20 Style of glazed
earthenware or
pottery (5)
21 Circular (5)
22 Exchanging goods
without involving
money (9)
DOWN
1 Agricultural
dwelling, buildings
and land (9)
2 Fossilised resin (5)
3 Bring up (5)
4 Cause an engine
to stop (5)
5 Until now (2,3)
8 Robinson
Crusoes helpful
assistant (3,6)
11 Carbon dioxide,
for example (3)
13 ___ Baba (3)
15 Deadbeat (5)
16 Ofering of a tenth
part of some
personal income (5)
17 Italian operatic
composer
(1813-1901) (5)
18 Injured by a bee
or wasp (5)
E
T
O
L
N D
A
H
C
4

4
4

4

P O M P O M F B
R A A Y E A Y E
O U T R A G E T A
D S M A N I A C
S I D E C A R G H
E C O L E U
U V H O Y D E N S
P R I V E T I I
P A R H U B A R B
E N T R E E L Y
R E R U E F U L
9 8 7 2 4 9 8 6
4 5 9 1 8 2 7 6 3
7 2 6 1 2
5 7 1 9 3 6
8 6 9 5 7 4 6 8
1 4 7 2 5 8 9 7
2 9 3 1 2 7 5 4
3 1 3 1 1 3
8 9 7 2 1
6 9 3 8 2 4 1 7 5
2 3 1 4 7 4 8 9
4
4
4
4
4
4
4
4
4
The nine-letter word was
BARONETCY
SHADOW DANCER sounds like it
might be a feel-good movie from the
80s, in which the central character
is redeemed through the power of
dance. Patrick Swayze could have
starred in it, overcoming great
adversity and getting the girl (you
know, the one with the welding
mask). Its not, though. Its the
opposite film to that. If youre
hoping for pirouettes and power
ballads, youre going to be very, very
disappointed.
Its a grim, realist portrayal of the
dog days of the Troubles in
Northern Ireland, where life is
tough and hope is all but extinct.
Clive Owen plays Mac, a cop who
snares Colette McVeigh, the sister of
two high-ranking IRA members,
during a failed terror attack on the
London Underground. Mac uses
Colettes young son as leverage to
persuade her to inform on her
family, which works out about as
well as these things tend to.
Kevin Mulville, an IRA enforcer
played with an understated menace
by David Wilmot, is drafted in to
smoke out the suspected rat, which
he does with a terrifying lack of
18
FRIDAY 24 AUGUST 2012
cityam.com
GOING OUT
WHERE
TO DRINK
TIM BADHAM
IN RECENTtimes, London has witnessed a
renaissance of the private members club,
updated dramatically from traditional
gentlemans clubs, yet retaining much of
their DNA.
This Spring, Robin Birley (of Annabels
stock) opened 5 Hertford Street in
Shepherds Market, a beautiful bordeaux-
coloured 23,000 square foot building
featuring elegant dining rooms, oyster bar,
terrace courtyard, cigar shop and dimly-lit
dancing in the basement nightclub
Loulous. Next door on Queen Street, the
arts and media oriented Soho House Group
have taken their first foray into Londons
priciest neighbourhood withLittle House
Mayfair. This bijou offering evokes the
relaxed intimacy, industrial chic and refined
cuisine of its elder and larger siblings.
Berkeley Square mainstay Mortons is
completely refurbishing its Night Lounge
with erstwhile Boujis-ites Carlo Carello and
Jake Parkinson-Smith working their South
Ken magic in Mayfair. The rebranded club,
named 2&8, will open on the 27 September,
with a grand launch party to be held across
the road in Berkeley Square. On Old Park
Lane, the Cottontail Lounge is closing to
become Baroque at The Playboy Casino,
which will be overseen by Gerry Calabrese
from the Hoxton Pony, son of famed
mixologist Salvatore, whose cocktail lounge
is right next door. Old-world touches
including Champagne towers and Louis XIV
chairs will set the scene for a live in-house
band and resident DJ Adam Ficek of
Babyshambles. In Soho, The Century Club
was recently refurbed by the new owners
The Rushmore Group (of Milk & Honey and
The Player fame) and remains one of
Shaftesbury Avenues best kept secrets,
catering to the media set with four floors
and featuring a tap room, cocktail bar,
events spaces and dining room.
MAURITIAN OPEN AIR FEST
26 August; Down Lane Park; 6;
Park View Road;
mauritianopenair.com
Mauritius is brought to
London this weekend.
Traditional music will
provide a sense of the exotic
in Down Lane Park as some
of the nations biggest
names perform a medley of
sounds. Last year 10,000
people attended and this
year it looks even bigger.
PYJAMA PARTY
25 August 8pm-3am; 3 (over 18s
only); Bloomsbury Lanes;
wegottickets.com
Tired of the same old
clubbing scene? Then this
will be the event for you.
Don your pjs and get down
to the Bloomsbury Lanes for
a night of fun and
festivities. Expect a variety
of music, from funky soul to
hip hop, with DJS including
Culture Cuts and the Ridds.
FESTIVAL OF FLOWERS
23-26 August; Southwark
Cathedral; 14;
cathedral.southwark.anglican.org
This historic venue will be
filled with the most beautiful
flowers from around the
world this weekend. Led by
artistic director Mig Kimpton,
who has been awarded two
gold medals at the RHS
Chelsea Flower Show, it is
sure to be a sensory
extravaganza.
LEONARD STREET PARTY
26 August; 12-8pm; free;
The Book Club; 100 Leonard
Street; wearetbc.com
Missing the Jubilee street
parties? Then head down to
Shoreditch for a day of
indulgent celebrations.
Fancy dress boxes, film
screenings and a multitude
of games will keep you
entertained throughout the
day, as well as live music, DJ
sets and plenty of dancing.
LIFE&STYLE
NOTTING HILL CARNIVAL
26-27 August; all day; free;
Ladbroke Grove;
thenottinghillcarnival.com
Since Notting Hill Carnivals
debut in 1966, people have
flocked to take part in this
Caribbean spectacle.
Buzzing crowds, live music
and a mass of colourful
dancers and processions
will all get you in the party
spirit. The main parade
takes part on the Monday.
Bank on a great holiday weekend
FILM
SHADOW DANCER
Cert 15 | By Steve Dinneen
hhhhi
Make the most of the extra day off with our guide to the best parties in town, by Albany Bell
THE CANON of movies starring
Ben Stiller and Vince Vaughn is
turning into something of a
machine-gun (I count at least five).
In The Watch, the lovable goofballs
form a neighbourhood watch
scheme. But wait, get this... They
find an alien! And it eats peoples
skin (yeah, like in Men in Black)!
To say it is lowest common
denominator stuff is unfair on the
FILM
THE WATCH
Cert 15 | By Steve Dinneen
hiiii
Shadow Dancer is provocative, dramatic and brilliant while The Watch is unwatchable
emotion. Andrea Riseborough is
excellent as Colette, a hard but
broken woman, trying to save her
child from the life that has
consumed her family. Owen,
meanwhile, never a man to use two
words when an anguished
expression will suffice, is pitch
perfect as Mac, who attempts to hold
the entire rickey structure together
despite his colleagues best attempts
to mess everything up. There are no
car chases and few bullets fired,
with director James Marsh gradually
increasing the heat until every
movement, every sideways glance,
becomes almost painfully
uncomfortable.
The cinematography is,
somewhat ironically, very British;
all its grim up north shots of
impoverished council estates and
lonely, grassy fields blowing in the
wind similar to Marshs take on
Red Riding. The attention to detail
is remarkable, from the crudely
daubed IRA graffiti covering the
estates to the smoke-laden, wood-
paneled working mens clubs.
Shadow Dancer treads the political
tightrope deftly, with Colette and her
brothers both cold, cool killers
bringing an uncomfortably human,
even likable, face to the IRA. Its
provocative, dramatic, harrowing
and rather brilliant.
lowest common denominator. The
jokes skate comfortably between
misogyny and farts in a formula
that was perfected more than a
decade ago in American Pie.
A scene in which an alien corpse
is abused by the protagonists is
presented as gross-out humour but
had the (presumably undesired)
effect of bringing to mind the
pictures of Iraqi prisoners being
humiliated by US troops.
Stiller is a bit like Steve Carell on
a bad day; hes got the down-
trodden but essentially likable
guy thing, only with less of the
likable.
It also stars Richard Ayoade from
The IT Crowd, although it is
probably more accurate to say it
stars Richard Ayoades character
from the IT Crowd; like a casting
agent saw an episode and said I
want EXACTLY that guy, clothes
and all.
Maybe kids will appreciate it, I
thought, until I realised there are
far too many f***s and c***s and
s***s and p****s and other words I
have to put stars in for it to have
been made for children. This is for
adults. Very, very stupid adults.
Maybe Im being unfair. Maybe
youll cackle like a demented
hyena at every mention of alien
jizz or torn hymens. And thats
fine. Really, try not to worry about
it. Its not your fault. Its not your
fault.
Clive Owen and Andrea
Riseborough shine in
this powerful drama
and-white-striped opponents
and, although the horrific
injury was never intended, it
serves as a reminder of Stokes
approach. But Tony Pulis
certainly wont be changing
his tactics any time soon as
they enter their fifth season
in the Premier League.
In the four previous league
meetings here the Gunners
have managed just four
points and they also lost 3-1
in the 2010 FA Cup at
the Britannia.
While Stoke
battered and
bruised opponents
last season, they
huffed and puffed
in front of goal.
The Potters were
the lowest scorers
in the division, but
still finished nine
points ahead of 18th-placed
Bolton, which shows just how
often they managed to grind
out results, one of which was
the 1-1 home draw with
Wengers boys.
With a gaping Robin van
Persie-shaped hole in the
Arsenal attack that neither
Lukas Podolski nor Olivier
Giroud could on Saturday fill in
the goalless draw against
Sunderland, Pulis will fancy his
charges to keep the visitors at
bay on Sunday.
With Arsenal evens, Id far
rather have the draw at 9/4 with
Coral. No goalscorer is a
tempting 8/1 with the same
firm and Ill be selling goals at
2.5 with Sporting Index.
FEW bosses came into the
season under greater
pressure than Roberto Di
Matteo and the Chelsea manager
has responded by steering his team
to two wins from two to lead the
way in the Premier League.
The Italian has been helped by a
forgiving start to the campaign,
with Wigan away and Reading at
home, but its the first time that
the Blues have topped the table
since November 2010. How long
they can continue to set the pace,
and whether they will be at the
summit in May, will be determined
by their performances in far
tougher assignments, like tomor-
rows match against Newcastle.
The Toon finished one rung
above sixth-placed Chelsea last
term and they have continued from
where they left off, with an opening
day 2-1 victory over Tottenham. Now
they will be full of confidence head-
ing to Stamford Bridge a ground
on which they are unbeaten in four
visits thanks to taking five points
from their last three league contests
and earning a 4-3 victory in
the third round of the 2010/11
League Cup.
The most recent of those meetings
was one that will live long in the
memory for Papiss Cisses brace of
wonder strikes that silenced the
Bridge. The Senegal striker will again
be a threat and the trouble for the
hosts is that he is far from alone in
that respect. Cisses partner up top
and fellow countryman Demba Ba
netted a brilliant curling effort
against Spurs and Hatem Ben Arfa
showed what he is all about when he
won and converted a penalty to seal
the victory. Throw in the likes of
Cheick Tiote and Yohan Cabaye in
midfield, a rejuvenated Steven
Taylor and Fabricio Coloccini at the
back, then the outstanding Tim Krul
behind them, and the strength of
Newcastles spine is clear to see.
Not that theres much wrong
with the options at Di Matteos dis-
posal hes spoilt for choice in every
department and I can understand
why they are 8/15 favourites with
Coral, but thats too short for me.
Newcastle, who went 11 games
unbeaten at the start of last season,
look a big price at a general 6/1. I
wouldnt be put off having a small
bet at those odds, but my main rec-
ommendation is to lay Chelsea, at
4/7 on Betfair, so that we profit in
the event of a draw or an away win.
Sporting Index have set their total
goals spread at 3-3.2 and I think that
presents us with a nice opportunity
to sell. Admittedly, Chelsea looked
lively against Reading and there
could have been more goals than
the half dozen witnessed in the
game, but that had much to do with
the Royals attacking attitude and I
expect Alan Pardew to be a little
more conservative.
Papiss Cisses goals earned Newcastle
victory away at Chelsea last season
FRIDAY 24 AUGUST 2012
20
FOOTBALL TRADER
BEN CLEMINSON WITH HIS BEST FOOTBALL BETS OF THE WEEKEND
CHELSEA........................................
NEWCASTLE...................................
Tomorrow, 5.30pm
STOKE.........................................
ARSENAL ....................................
Sunday, 1.30pm
n Pointers
Lay Chelsea at 4/7 on Betfair
Sell total goals at 3 with Sporting Index
n Pointers
Draw at 9/4 with Coral
Sell total goals at 2.5 with Sporting Index
IF Arsene Wenger drew
up a list of the grounds
he hated visiting
most, then I am sure
that the Britannia
Stadium would be
pretty close to
the top.
There is the
recurring
nightmare of
Ryan
Shawcross
challenge on
Aaron
Ramsey every
time Arsenal
see their red-
LIVERPOOL ........................................
MANCHESTER CITY.............................
Sunday, 4.00pm
EVEN with the mediocrity that has
engulfed the club in recent seasons, the
most pessimistic of Liverpool supporters
would have found the 3-0 defeat at West
Brom hard to see coming.
It showed just how much work
Brendan Rodgers has on his hands and
he will be desperate for something from
the visit of Manchester City on Sunday
to give himself a little room to
manoeuvre in what will be a testing
start to his tenure.
After City, the Reds host Arsenal
before they visit Sunderland and then
welcome Manchester United. The
results from those games should tell
us plenty about Liverpools long-
term prospects.
City showed that they are not yet
watertight at the back when they
allowed Southampton to score twice on
Sunday, but Luis Suarez will need to
locate his finishing boots after failing
to find them before his outing at
the Hawtorns if his team are to worry
their guests.
Roberto Mancinis men dont have a
great record at Anfield they havent
won there under him in league or cup
and their last victory came in May 2003
when a Nicolas Anelka brace cancelled
out Milan Baross strike.
Both meetings in 2011/12 at Anfield
ended in stalemate 1-1 in the Premier
League and 2-2 in the Carling Cup and
another draw could be on the cards
here, at 23/10 with Coral.
I think Liverpool will show a reaction
and even in their darkest days their
home form tends to stand up.
n Pointers
Draw at 23/10 with Coral
THEPUNTER
Newcastle can hold their own
at Stamford Bridge once again
I WAS at York on Wednesday to
see the great Frankel strut his
stuff over 10 furlongs for the
first time and it was an experi-
ence I will never forget. He
could win just about any race
and if he was to line-up in this
afternoons Nunthorpe Stakes
(3.40pm), the next round of the
QIPCO British Champions
Series, I honestly think he
would win.
Luckily for this afternoons
runners, Frankel isnt in the
field, but it still looks to be a
very hot renewal. Bated Breath
is Corals 4/1 market leader and
Roger Charltons runner is still
seeking an elusive first Group
One prize. The four-year-old was
beaten a nose in last
Septembers Haydock Sprint
Cup and was also runner-up in
the Kings Stand Stakes at Royal
Ascot. He needs quick ground to
be seen at his best, so condi-
tions are set to be perfect, and
must have a favourites chance.
The Australian mare
Ortensia is a proven Group One
performer and bounced back to
form at Goodwood last time.
William Buick gave her a great
ride that day and seems to have
found the key to her in that she
likes to be ridden away from
the other runners and pro-
duced late. However, those tac-
tics are difficult to implement
on the Knavesmire and,
although Im sure she will fin-
ish with a rattle, the bird may
well have flown.
Im hoping that bird is SOLE
POWER who has to go down as
one of the unluckiest horses
around. Eddie Lynams stable
star won this race two years ago
when an unfancied 100/1 shot,
but he has since proven that
performance was no flash in
the pan. He won the 2011
Temple Stakes and although
that was his last victory, he has
since been placed in the
Prix de lAbbaye, Al Quoz
Sprint, Temple Stakes and
Kings Stand.
He is another that needs
quick ground to show his best
form and, while there is little
between him, Bated Breath and
Ortensia on form, he has the
best course record and is worth
backing at a general 11/2.
The Convivial (4.15pm) is
always one of the hottest maid-
ens of the season and Richard
Hannons Wentworth is sure to
start favourite following a
promising run at Goodwood.
He suffered a terrible passage
that day but Richard
Hughes looked after him
and he will be strongly
fancied to make amends
this afternoon.
However, the word from
Lambourn is that Charlie Hills
MARKET TOWN could be very
special indeed and he looks a
decent each-way alternative to
the Hannon hotpot.
Frankel is likely to make his
final ever appearance at Ascot
on QIPCO British Champions
Day, so make sure you get your
tickets now by calling 0844 346
3000 or visiting www.britishcham-
pionsseries.com.
ONLY one favourite has won
the last 13 renewals of the
Betfred Ebor (3.40pm) and Sir
Mark Prescott's Motivado, who
sneaked into the UK's richest
handicap by the skin of his
teeth, is a warm order to buck
that losing trend.
The four-year-old was an
emphatic winner of a handi-
cap over this trip at Glorious
Goodwood on his latest start
earlier this month and there is
every chance that he is as
equally 'thrown in' as his sta-
ble's Hasten To Add was when
winning this very contest back
in 1994. However, he has his
quirks and is as equally likely
to throw in a stinker as he is to
bolt up and for that reason I'm
leaving Coral's 4/1 well alone.
John Gosden and William
Buick have had an extraordi-
nary season to date and I cer-
tainly wouldn't be surprised to
see Camborne play a part in
the finish. Yet, there is just a
danger that the handicapper
may have got to grips with
him as he's 22lb higher than
when winning at Doncaster
two starts back.
French-raider Hammerfest
makes my short-list as the step
up to 14 furlongs will suit. If
the heavens do open on the
day, hell be a lot shorter than
the 10/1 currently on offer, but
his wide draw is a turn-off.
Instead, Ill be backing
Jessica Harringtons classy
hurdler STEPS TO FREEDOM
to defy top-weight at a tasty
looking 18/1. The six-year-old
has loads of flat speed, as he
showed when only beaten just
over three lengths by Fame
And Glory in a Listed contest
earlier in the campaign.
Darren Egan takes off a handy
five pounds and my selection
relishes a decent surface.
Saddlers Rock looks hard to
oppose earlier in the card in
the Lonsdale Cup, but a better
bet may be Richard Hannons
SKY LANTERN in the Prestige
Stakes (2.15pm) over at
Goodwood. She found only the
well-regarded Certify too good
for her last time and meets
nothing of that ones class
tomorrow.
Finally, Roger Varians ALJA-
MAAHEER can gain compen-
sation for an unlucky defeat at
Glorious Goodwood by win-
ning the Group Two
Celebration Mile (3.20pm).
You can follow me on
Twitter @BillEsdaile for all my
racing views.
2010 Nunthorpe winner Sole Power can strike again on the Knavesmire this afternoon
21
RACING TRADER
BILL ESDAILE PREVIEWS THE BEST OF THE ACTION FROM YORK AND GOODWOOD
cityam.com
FRIDAY 24 AUGUST 2012
MONEY BACK OFFER: Win stakes and win part of each-way bets refunded if your selection nishes second to SILVER LIME.
Max refund of 200 per customer. Singles only. GUARANTEED PRICES: 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. Stake restrictions may apply. LAY ANY HORSE TO WIN 10K: Coral guarantee to lay the win part of any bet to win
10,000. There is no guarantee to lay any corresponding place bet. Offer applies to singles only. Offer only applies to the win part
of any bet selection at YORKfromWednesday 22ndAugust - Saturday 25th August laidafter 09:00on the day of the race. Available
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Deposit and stake up to 30 on any sporting event(s) to receive a matched deposit free bet on selected markets. Free bet stake not
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Applies to York win bets placed in shop after 9am
PLUS
n Pointers
SOLE POWER e/w 3.40pm York (today)
MARKET TOWN e/w 4.15pm York (today)
n Pointers
SKY LANTERN 2.15pm Goodwood
(tomorrow)
ALJAMAAHEER 3.20pm Goodwood
(tomorrow)
STEPS TO FREEDOM e/w 3.40pm York
(tomorrow)
Steps To Freedom looks a big price
to defy welter burden in the Ebor
FRANKIES
THOUGHTS
FRANKIE DETTORI
What is there left to say about
Frankel? He is an unbelievable
horse and we are very lucky to have
him. It was nice to finish second to
him on Farhh, but we never had a
chance of beating him.
I ride Spirit Quartz in the
Nunthorpe this afternoon and he
must have a reasonable each-way
chance. He ran well to finish second
to Ortensia at Goodwood last time,
but it will be hard to turn around
the form. Shed be my idea of
the winner.
Dubai Prince takes his chance in
the Strensall Stakes and he is a
course and distance winner. He
does prefer softer ground, so
although Id give him a chance, Id
like to see some rain.
Expert Fighter doesnt have the
greatest of draws in the opener, but
that isnt as much of a disadvantage
as it used to be at York and he is
another with an each-way squeak.
However, my best chance of a
winner today is Brave Command in
the Convivial. This is always a very
difficult race to win, but I quite like
this colt and he should be there or
thereabouts.
The big race tomorrow is the Ebor
and Im hoping for a big run from
Willing Foe. He has some decent
form in the book and as long as his
draw in stall 18 isnt too much of a
disadvantage he is well capable of
finishing in the first four.
Saddlers Rock is going to be very
hard to beat in the QIPCO British
Champions Series Lonsdale Cup. He
won the Goodwood Cup last time,
but Ill be going all out to get him
on Cavalryman who has won his
last two including at this track in
May.
Expect another
Power surge
in todays
Nunthorpe
WIGAN last night accepted a 9m
offer from Chelsea for Nigeria for-
ward Victor Moses as the European
Champions continue to strengthen
their squad for a potential Premier
League title tilt.
The bid, comprised of 7m up
front and an additional 2m in add-
ons, is the fifth that Chelsea have
this summer made for Moses but in
finally assembling one that for
Wigan is acceptable,
the west London club
have brought closer
one of the
summers seem-
ingly inevitable
transfers.
The club can
confirm that
after four
unsuccessful
bids from
Chelsea for
Victor Moses,
a fifth bid has
finally met the valuation
and terms set by Wigan
Athletic and been accept-
ed, read a club statement
from Wigan, who had
already recruited Arsenals
Ryo Miyaichi on loan to be an
apparent replacement for the
man they stand to make a pos-
sible 6.5m profit on. The
player has been given permis-
sion to speak with Chelsea.
Wigan manager Roberto
Martinez had earlier yester-
day admitted that Moses
could be sold should their
asking price be met while
speaking of his pride in a
player signed for 2.5m
from Crystal Palace in
January 2010, but the loss of a
key player for significant money is
not a sentiment with which he is
unfamiliar. Since succeeding Steve
Bruce as manager in 2009, Lee
Cattermole, Luis Antonio Valencia
and Charles NZogbia are just three of
those who have been sold for a com-
bined fee of around 31.5m.
You will get all sorts of specula-
tion, but the reality is every
player has a valuation, said
Martinez. If a club match-
es that valuation, then
maybe you have to sit
down with the player
and there is a decision
to be made.
Victor is an
incredible young
man and I think
the maturity he
showed on
Sunday [in the
2-0 defeat to
Chelsea] is not
normal in a 21-
year-old. It has
been a real joy to
see him grow over the
last few seasons.
The arrival of Moses
in addition to those of fel-
low attacking widemen
Edez Hazard, Marko Marin,
Kevin de Bruyne and
Chelsea manager Roberto Di
Matteos acknowledgement
of his hopes to sign another
striker would effectively place
greater doubt on the already
somewhat uncertain future of
Daniel Sturridge.
The England international has
been largely out of favour since Di
Matteos appointment and may need
to move to play first-team football.
BRITISH No1 Andy Murray is to play
Russias Alex Bogomolov Jr in the
first round of the US Open ahead of
a potential semi-final showdown
with recent rival Roger Federer.
World No73 Bogomolov Jr beat
Olympic gold medallist Murray 6-1,
7-5 in the Sony Ericsson Open in 2011
but should the Scot wish to cap an
outstanding run with a career first
grand slam title, a third meeting in
three major tournaments against all-
time great Federer is an almost
inevitable obstacle.
Murray last month lost over four
sets to Federer in the Wimbledon
final before producing some of the
finest form of an occasionally
frustrating career to dismiss the
Swiss in three and ultimately deny
Murray could face Federer in US
Open but Bogomolov Jr is first
him the only remaining major
honour to elude his collection.
That same day, the Scot,
partnering Laura Robson, secured
silver in the doubles final, and she
faces a qualifier before a potential
second-round meeting with three-
time champion Kim Clijsters.
FRIDAY 24 AUGUST 2012
22
SPORT
cityam.com/sport
BY DECLAN WARRINGTON
BY DECLAN WARRINGTON
ENGLAND one-day captain Alastair
Cook insists the Kevin Pietersen text
message saga will not dent his
teams efforts to continue their
winning run when they face South
Africa today in Cardiff.
The Proteas could knock Cooks
50-over side off the top of the world
rankings with victory in the five-
match series, just as they did to
Andrew Strausss Test outfit earlier
this week at Lords.
But England are riding the crest of
a 10-match winning streak,
including a 4-0 thrashing of
Australia achieved without
Pietersen, who has been axed
indefinitely after falling out with
Strauss and coach Andy Flower.
It has happened. Certainly there
Pietersen text row wont affect
one-day mission, insists Cook
are a number of issues that will get
resolved and have to get resolved. For
me personally its a sad situation but
as a team we need to put it to one
side, said Cook.
We played some really good
cricket at Lords even though we
didnt get the result; and to be fair
he hasnt been around the one-day
squad for a while. Theres not really
that much change here. He
[Pietersen] hasnt been around for a
year or so now.
Pietersen, who is said to have
derided Strauss in texts to friends
among the South Africa squad, was
ably replaced by Ian Bell against
Australia, the Warwickshire
batsman winning the man of the
series title. Cook added: It is always
encouraging when people step up to
the plate like that.
BY FRANK DALLERES
Victor Moses has been a long-term
transfer target for Chelsea
@cityam_sport
LIVERPOOL last night won 1-0 away to Scottish club Hearts in the Europa League
qualifying play-off round first leg after an own goal by defender Andy Webster. The
match was a largely even affair in which Liverpools new Italian striker Fabio Borini
missed several chances. Newcastle, meanwhile, drew 1-1 away to Greek side Atromitos.
LUCKY LIVERPOOL EDGE TO HEARTS VICTORY
ROUND-BY-ROUND
Murrays likely opponents
nFirst round: Alex Bogomolov Jr
nSecond round: Ivan Dodig
nThird round: Feliciano Lopez
nFourth round: Milos Raonic
nQuarter-final: Jo-Wilfried Tsonga
nSemi-final: Roger Federer
nFinal: Novak Djokovic
IN BRIEF
Fulham lodge Reds complaint
nFOOTBALL: Fulham have
complained to the Premier League
over Liverpools pursuit of midfielder
Clint Dempsey. The Cottagers last
month registered their unhappiness at
comments made by boss Brendan
Rodgers. The League is investigating.
Farah tweets probed by Saints
n RUGBY UNION: Northampton Saints
hooker Brett Sharman is being
investigated by the club over
comments he made on Twitter about
London 2012 hero Mo Farah. The
South African, 25, later apologised for
the remarks and deleted his account.
Froome finishes second in Spain
n CYCLING: Britains Chris Froome, of
Team Sky, finished second in the sixth
stage of the Vuelta a Espana, won by
Spains Joaquim Rodriguez.
One loss wont
keep United
from top two
T
HE first week of the Premier
League season has already
produced excitement, shown
some high quality and some
bizarre results.
Opening fixtures can be like that; a
team will think theyre ready and
then just not turn up on the day.
Everton, for example, were
determined to have a good start and
deserved their win, but Manchester
United will still finish in the top two.
There are some concerns
surrounding Chelsea, despite their
two victories, but these for me are
limited. Theyve got themselves a real
diamond in Eden Hazard. Theyre not
a free-flowing team yet, and Im not
yet sure about Oscar, but theyve a lot
more self belief to them this season.
Liverpools loss to West Brom was a
poor result, particularly with their
fans hoping for a wave of optimism.
Daniel Aggers red card made it
difficult, but with their new players
itll be a while before theyre all
comfortable with a different system.
Tottenham lost at Newcastle but its
never easy to win there and I actually
thought they played well. Andre Villas-
Boas has said he doesnt want to buy
another striker but he must be
bluffing; he still needs to strengthen.
Arsenal have been rocked by Robin
van Persies exit but I still think they
should be winning their home games.
Though I believe Olivier Giroud will
score, I have doubts for them over
Lukas Podolski as Im not sure about
his pace I just dont see where his
goals are going to come from.
Trevor Steven is a former England
footballer who played at two World Cups
and two European Championships. He
now works as a talent scout and
media commentator.
FOOTBALL
COMMENT
TREVOR STEVEN
Chelsea make
move for 9m
forward Moses
23
Saracens winger Chris Ashton scored a hat-trick
in the friendly victory over French side Stade
Francais See THECAPITALISTPage 10
cityam.com
FRIDAY 24 AUGUST 2012
BELGIAN Ryder Cup hopeful Nicolas
Colsaerts signalled his
determination to snatch the last
automatic qualifying place on the
European team by making a strong
start to the Johnnie Walker
Championship yesterday.
Colsaerts, who needs to finish in
the top two at Gleneagles to swipe
the spot from Martin Kaymer, shot a
69 to finish the first round three
under par two shots behind the
joint leaders Brett Rumford and
Knut Borsheim.
The 29-year-old is aiming to make
history by becoming the first Belgian
to play in the Ryder Cup, which takes
place at Medinah Country Club,
Chicago, next month.
He said: I am very happy as I was
in control of my game and this is the
start that I wanted without too
much stress. The only thing I can do
is to make sure of what I do and not
worry about the others.
BY FRANK DALLERES
FOUR OF LONDONS AVIVA
PREMIERSHIP RUGBY TEAMS,
ONE SPECTACULAR DAY
TWICKENHAM STADIUM 1 SEPTEMBER 2012
IN ASSOCIATION WITH
2 GAMES, 1 TICKET
CALL 0844 847 2492 OR VISIT TICKETMASTER.CO.UK
TICKETS AVAILABLE FROM 20
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JAMAICAN sprinter
Yohan Blake last
night ran the joint-
third fastest time
in 100m history in
the Diamond
League meeting in
Lausanne. The
London 2012 100m
and 200m silver
medallist ran 9.69
seconds to beat
American Tyson
Gay into second
place and is behind
only compatriot
Usain Bolt in the
100m records.
He said: I have
been sick all week,
thank God I
recovered. I have
more races and Im
going to get better
and better. I would
run with Usain any
day, hes my
training partner. I
would love to run
with him, but they
have to put up big
money."
Bolt competed
only in the 200m,
and finished first
with a time of
19.58 seconds.
BLAKE BLASTS CLOSE TO BOLTS 100M RECORD
Colsaerts reaches for
Ryder Cup place in
bid to make history
PERMUTATIONS
European Ryder Cup Team
nNine men have already booked
their places in the European team:
Rory McIlroy, Justin Rose, Graeme
McDowell, Paul Lawrie, Francesco
Molinari, Luke Donald, Lee Westwood,
Peter Hanson and Sergio Garcia
n Germanys Martin Kaymer currently
occupies the 10th automatic
qualifying spot, but will be overtaken
by Nicolas Closaerts if the Belgian
finishes first or second at the Johnnie
Walker Championship
n Europe captain Jose Maria Olazabal
will complete his 12-man team by
naming two wildcard picks on
Monday. Ian Poulter, Padraig
Harrington and Closaerts are among
the leading contenders
The One Plan.
All you
can eat
data
2000
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