Cityam 2012-10-29

Hurricane Sandy was last night headed for the east coast of the United States
BUSINESS WITH PERSONALITY

Wall Street battens down the
hatches for Frankenstorm
US STOCK exchanges shut down their
trading floors today and Wall Street
firms prepared staff to work from
home or regional offices as New York
braced itself for the arrival of hurri-
cane Sandy.
The New York Stock Exchange said
yesterday it would close its trading
floor for weather-related reasons for
the first time since hurricane Gloria
swept through the city 27 years ago.
All operations are instead being con-
ducted through NYSE Arca, its elec-
tronic exchange, parent company
NYSE Euronext said.
CME Group, the futures exchange
operator, also said its New York com-
modity trading floor would be closed
after a mandatory evacuation issued
by the New York City government.
The hurricane, nicknamed
Frankenstorm, is expected to strike the
East Coast today, bringing torrential
rains, gale-force winds, severe flooding
and power cuts.
Several states have declared an emer-
gency, including New York, where
375,000 people have been ordered to
evacuate low-lying areas, while schools
are closed and transport systems sus-
pended. Website FlightAware.com said
2,499 flights to and from the US today
have been cancelled as a result of the
looming storm.
Wall Street firms including Goldman
Sachs and Citigroup have made emer-
gency plans.
Goldman said only staff deemed
critical to operations would work
from its Manhattan headquarters
while some employees will work from
offices in Connecticut and Greenwich.
Certain activities have also been
shifted to Goldmans London office
and other locations around the world.
THE PHONE hacking scandal yester-
day widened to include City targets, as
leading public relations firm Citigate
Dewe Rogerson admitted that the
voicemails of three of its executives
may have been targeted by hackers.
City A.M. understands that the firm
was made aware of the potential
breach as part of Operation Weeting,
the Metropolitan Police investigation
into the illegal access of voicemails
by journalists.
Until now the inquiry has mainly
focused on the hacking of celebrities
voicemails. This is the first time that
it has raised the prospect that
attempts were made to illegally access
information on corporate deals.
A Citigate spokesman said: We
were told by our mobile provider
around 18 months ago that police
were investigating allegations that
between 2005-2006 attempts by
unauthorised parties may have been
made to hack into three of our com-
pany mobile phones.
We sought further details from
the police but there has been no
recent follow-up by them. And we do
www.cityam.com FREE
not believe this inquiry is ongoing.
When we received the original let-
ter we of course reviewed all our pro-
cedures but all our staff are in any
event very disciplined about the use
of mobile phones.
The spokesman could not confirm
whether any specific business
accounts were at risk. The potential
breaches occurred at a time when
Citigate played a leading role in some
of the corporate worlds biggest deals,
including Telefonicas purchase of
the mobile phone network O2.
Last night rival leading corporate
public relations firms were at pains
to tell City A.M. that they were not
aware of any similar concerns regard-
ing illegal access of voicemails.
One firm said it had not been
affected but had taken security meas-
ures to avoid such an eventuality,
while several other companies insist-
ed they had not been targeted by
hackers.
Operation Weeting was prompted
by allegations of widespread voice-
mail hacking at the News of the
World and has so far resulted in 24
arrests.
In July it was announced that eight
people would be charged as a result of
the ongoing probe, including ex-News
International chief executive Rebekah
Brooks and Andy Coulson, the Prime
Ministers former communications
director.
The Metropolitan Police declined to
comment on the
Citigate alle-
gations.
BY KASMIRA JEFFORD
FTSE 100 5,806.71 +1.66 DOW 13,107.21 +3.53 NASDAQ 2,987.95 +1.83 /$ 1.61 unc / 1.24 unc /$ 1.29 unc
BY JAMES WATERSON
CITY FIRM:WE
MIGHT HAVE
BEENHACKED
MOVE RUGBY TO SUMMER
ISSUE 1,748 MONDAY 29 OCTOBER 2012
OBAMA VS
ROMNEY
Who do markets prefer? Debate, Page 23
See Sport, Page 31
Certified Distribution
27/08/12 til 30/09/12 is 128,785
Scotland Yards Sue Akers is heading
up the 40m Operation Weeting probe
OUR BRILLIANT SPORTS COLUMNIST JOHN INVERDALES RADICAL PLAN
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RUPERT Murdochs News Corp has
indicated it will make a substantial
cash offer for media conglomerate
Pearsons Penguin Group, joining
the race for the book publisher.
The bid, said to total around
1bn, could scupper plans to tie
Penguin with Random House,
owned by Germanys Bertelsmann.
News Corp owns book publisher
HarperCollins. Pearson confirmed
on Thursday that it was in talks
with Bertelsmann, but said the two
had yet to agree a deal.
Outgoing Pearson chief executive
Marjorie Scardino is thought to
favour a deal with Random House.
A sale would provide a clean break
with book publishing for Pearson,
also owner of the Financial Times,
as it concentrates on
the education division
that became a
dominant force under
Scardino.
A News Corp
spokeswoman
declined to
comment on the
report. Pearson
spokespeople
could not be
reached for
comment.
Murdoch seeks
to tie Penguin
to News Corp
BY CITY A.M. REPORTER
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Tory MPs call for 50,000
threshold for higher tax
PEOPLE earning less than 50,000 a
year should not pay the 40p higher
rate income tax, according to a
report out today by prominent
backbench Conservative MPs.
The proposal comes from Kwasi
Kwarteng and Priti Patel, who both
belong to the Free Enterprise Group
of 36 MPs who seek to promote eco-
nomically liberal causes.
At the moment any earnings
above 42,476 are taxed at the high-
er rate. According to the independ-
ent Institute For Fiscal Studies, the
number of higher rate taxpayers
will increase from 3.7m in 2011 to
5m by 2014.
Kwarteng told City A.M. that this
was holding back growth and trap-
ping ambitious workers, particular-
ly in London and the South East.
You want to be motivating your
middle income earners because
thats the engine of growth, particu-
larly in the corporate sector. You get
more and more people paying the
40 per cent rate and it was never
meant for the aspirational classes,
he said.
A former Treasury minister told
me that it wasnt designed for the
number of people that pay it but if
you keep the threshold low it makes
money for the exchequer so theres
no real incentive to change.
Lloyds to axe sales incentives
Lloyds Banking Group has launched a
scheme that scraps all incentives linked to
product sales in the latest attempt to
clean up bad practices that have been
blamed for causing misselling scandals.
Chinese banks flee Londons rules
Chinas largest state-owned banks are
moving big chunks of their European
business to Luxembourg as they seek to
escape tougher regulation in the City of
London. In a recent letter to the UK
Treasury, the Chinese banks bitterly
complained that uneven regulation and
rigorously demanding liquidity rules
had prompted them to transfer business
out of London.
US funds return to Eurozone
US money market funds have increased
their exposure to Eurozone banks since
the summer, in the latest sign of returning
confidence in the stability of Europes
monetary union. Exposure to Eurozone
banks of US prime money market funds at
the end of September was 16 per cent
higher on a dollar basis than a month
earlier, according to Fitch ratings.
No millions for top law partners
The average partner at Britains ten
biggest legal practices made 951,000
last year up almost five per cent, but
still well short of the 1.25m, adjusted for
inflation, they made in 2008, according to
PwC, the professional services firm.
Bank warns of wait for faster growth
Britain is heading into a sharp slowdown
in growth as the bounce from the
Olympics disappears, the Bank of
Englands Spencer Dale has warned.
Shell attacks European energy policy
Royal Dutch Shell has attacked the
ridiculous impact of European energy
policy, warning that governments are
erasing the environmental benefits from
expensive renewables by allowing coal use
to increase.
Motorists to be taxed for motorways
Motorists would have to pay a higher rate
of road tax for the right to drive on
motorways, under plans examined by the
government.
Fiat CEO prods governments on glut
Governments should take a greater role in
eliminating a glut in global auto-making
capacity, Fiat chief executive Sergio
Marchionne said yesterday, citing both
Europes declining demand and Chinas
promising, but fragmented, auto industry.
Las Vegas Sands discusses settlement
Las Vegas Sands and US federal prosecutors
discussed settling a probe into whether the
casino company violated money-laundering
laws regarding a pair of high-rolling
gamblers.
THE HEAD of ESPNs European TV
operations has quit the
broadcaster, in a move that may
pave the way for the company to
shut down its UK sports channels
from next summer.
Jeroen Oerlemans, ESPNs vice
president in charge of TV in
Europe, the Middle East and Africa,
has recently stepped down without
a successor being appointed, City
A.M. has learned.
ESPN, which is owned by Disney,
has also sold distribution rights to
the Italian Serie A football league,
the American MLS, and Frances
Ligue 1 to BT as the telecoms giant
gears up to launch its own sports
channel next year.
BT recently outbid ESPN for the
rights to Premier League football
games and Rugbys Aviva
Premiership from next season, and
poached top producer Stephen
Cook.
They dont have much to offer
now, an industry source said.
When asked if ESPN UK would
still be broadcasting next year, a
spokesman said: We are actively
exploring a range of potential
options for our business, but we do
not discuss private business
strategy publicly. Oerlemans, who
helped launch ESPN UK in 2009,
said he was stepping down for
personal reasons.
ESPN may shut
off TV channel
after chief exits
Kwarteng warned current tax policies could create a disincentivised workforce
4
NEWS
BY JAMES TITCOMB
BY JAMES WATERSON
To contact the newsdesk email news@cityam.com
W
HENEVER you hear a
politician promising that a
painful measure will be
purely temporary, run for
the woods, tin hat in hand. The most
painful of all policies, the income tax,
was first introduced in Britain as an
emergency measure to pay for the
Napoleonic wars.
From the beginning, as Kwasi
Kwarteng and Priti Patel, two Tory
MPs who deserve to go far, point out
in an excellent pamphlet from the
Free Enterprise Group, it was a pro-
gressive tax, beginning at 2d in the
pound for incomes over 60, and
increasing to 2 shillings in the pound
for earnings over 200, a 10 per cent
rate. In 1909, Lloyd George introduced
a supertax, originally at double the
basic rate at 7.5 per cent, and intended
to hit those on incomes above 5,000
a year, then a hundred times average
EDITORS
LETTER
ALLISTER HEATH
How income tax has become such a nightmare for so many
MONDAY 29 OCTOBER 2012
earnings and equivalent to around
500,000 today.
Such restraint didnt last. In 1914,
the standard rate of income tax was 6
per cent. By 1918, it reached 30 per
cent, with the rich facing ridicu-
lously high rates, again because of a
war. In 1938, only 4m taxpayers paid
income tax. By the end of the Second
World War yes, there is a trend
here 12m families paid it. Today
around 29.9m people pay the tax.
The introduction of income taxes
around the world have tended to fol-
low a very similar pattern over the
past couple of centuries. First, we get
generally low income tax rates, with
most people exempt and with the
highest rate only affecting a few peo-
ple relatively lightly. Eventually, tax
rates shoot up for everybody includ-
ing to crippling levels for top earners
and millions more are caught by
income tax. The next stage is that the
ultra-high tax rates for top earners are
reduced to manageable levels but
ever more people are brought into the
tax system, with the higher brackets
also catching vastly more folk.
The biggest change in the UK has
been the number of people paying
what is now the 40p tax rate: up six-
fold in thirty years, from 674,000 in
1979-80, 2.5m in 1999-2000 to 4.048m
in 2011-12. This number will jump
again to around 5m in 2014, accord-
twice the average income.
Anybody earning just 41,450 in
2013-14 will pay an incentive-destroy-
ing top tax rate originally intended
for those on very high incomes. Yet in
April 2011, median annual earnings
in London were 33,847 on one meas-
ure, according to figures cited by the
report. As Kwarteng and Patel point
out, taxpayers in London and the
Home Counties, who tend to earn
more but face high living costs, are
being hit especially badly: there is no
equivalent to the London weighting
for taxation. It is hard to know what is
most depressing: the fact that Britain
has become such a horrendously over-
taxed nation, or the fact that neither
the Tories nor Labour are going to do
anything about it.
ing to the Institute for Fiscal Studies.
When Margaret Thatcher came to
power, just 2.6 per cent of taxpayers
paid the top rate; by the time of the
next election, 16.7 per cent will. The
salary required to pay the top rate has
remained roughly constant in real
terms. But wages have gone up faster
than inflation over the past few
decades, dragging more and more
people into the 40p bracket.
This process has been accelerated by
the Chancellors decision to increase
the personal allowance while ensur-
ing those on higher incomes dont
benefit. Every time the tax-free
amount has gone up, the threshold at
which the 40p rate kicks in has come
down. This has turned a good policy
cutting taxes for the poor into a stu-
pid one massively increasing the
marginal tax rate on hundreds of
thousands of people who earn under
In the long run if you have a disin-
centivised middle layer its going to
impede growth.
Kwarteng insisted that it was realis-
tic to move to a 50,000 threshold
over a five year period, before linking
future increases to growth in average
earnings.
The report also proposes increasing
the threshold for the small compa-
nies rate of corporation tax from
300,000 to 500,000. This has not
been increased since 1994.
The report estimates the reduction
in revenues to the Treasury of such
measures would be 4bn, which
could be saved by freezing working-
age benefits for two years, cutting
middle class benefits by 10 per cent,
or reducing VAT exemptions.
In the longer term it proposes align-
ing the basic rate of income tax, the
small profits rate and main rate of
corporation tax at 20 per cent,
although the authors admit this will
have to wait until the recovery.
The report concludes: If we wish to
create a more dynamic economy, we
need to motivate the middle and
increase the returns to work.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
Rupert Murdoch
has offered 1bn
NORTHCLIFFE Media, the regional
newspaper publisher owned by Daily
Mail & General Trust (DMGT), is close
to being bought by a joint venture
between ex-Trinity Mirror head
David Montgomery and private
media group Yattendon.
DMGT yesterday confirmed that
talks had begun on the deal, which is
being supported by prominent asset
manager Crispin Odey and looks set
to be worth around 100m.
A deal would merge Yattendons
local newspaper business Iliffe News
& Media with Northcliffe to create a
new company boasting 114 titles.
Northcliffe has seen continually
declining revenues in recent years
while DMGTs national papers hold
up and its business-to-business pub-
lishing operations continue to grow.
Montgomery, who set up European
newspaper publisher Mecom in 2000
after he quit as chief executive of
Trinity Mirror, and also served as
News of the World editor in the
1980s, is set to take a small stake in
BY JAMES TITCOMB the new company, which would be
known as Local World.
Veteran fund manager Odey, along
with HSBC, Bank of Ireland and
Lloyds, is backing the deal.
Northcliffe was valued at more than
1bn around five years ago, but has
seen advertising sales plummet in
recent years and has closed a number
of titles. However, it still has revenues
of around 200m, and owns 84
papers including the Leicester
Mercury and Hull Daily Mail.
DMGT, which is expected to retain a
slice of Northcliffe, said: No deal or
transaction has been agreed.
Veteran fund manager Crispin Odey (left) and ex-Trinity Mirror chief David Montgomery
Daily Mail and General Trust PLC
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NEWS
cityam.com
Liquidity in AIM steady even as
main markets slide during crisis
LIQUIDITY in the Alternative
Investment Market (AIM) has held
up much better than the main
markets during the financial crisis
and recession, according to data out
today.
Investors traded 1.86bn worth of
AIM shares on average per day
during 2012, the data from
accountancy group UHY Hacker
Young showed, a decline of just one
per cent on 2011.
This compares favourably with
the 20 per cent collapse in trading
on the main market, bringing the
daily average value from 5bn in
2011 to 4bn this year.
Despite the slight dip in volumes,
trading activity on AIM remains
relatively buoyant, said Laurence
Sacker at UHY Hacker Young.
This came as data consultancy
Morningstar revealed that Finncap
has taken top spot in its league of
AIM stockbrokers, boosting its client
numbers to 84 in the third quarter,
from 79 the quarter before. New
clients included iron ore miner
Ferrex, software provider Ideagen,
and China-orientated electronics
producer Kada Technology.
Cenkos, last quarters leader,
placed second with 79 clients, down
from 80, with Canaccord Genuity in
third, WH Ireland in fourth, and
Seymour Pierce rounding off the top
five. However Finncaps success in
client headcount was not equally
replicated in client market
capitalisation, where it placed 12th.
Numis Securities, working for firms
worth a total 6.7bn, topped that
table, followed by Canaccord and
Mirabaud Securities.
BY BEN SOUTHWOOD
FINNCAP JUMPS TO LEAD AIM STOCKBROKER RANKINGS
Rank 2012 Stockbroker Number of clients Last year
1 Finncap 84 (79)
2 Cenkos Securities 79 (80)
3 Canaccord Genuity 72 (77)
4 WH Ireland 66 (61)
5 Seymour Pierce 61 (63)
6 Numis Securities 56 (55)
7 Westhouse Securities 53 (57)
8 Panmure Gordon (UK) 49 (50)
9 Shore Capital 43 (42)
10 Northland Capital Partners 40 (39)
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Montgomery in
talks with DMGT
over Northcliffe
INVESTMENT bankers are set to take
another blow as Barclays considers
cutting their basic salaries, joining
the industry-wide flood of firms
reducing pay and headcount levels.
And recruitment specialists say
any Barclays staff affected will have
no choice but to grit their teeth and
bear it, as they have few options else-
where in the sector.
The banks new chief executive
Antony Jenkins has in the past spo-
ken of his plans to rebalance the
banks spending away from staff
and towards shareholders. And ana-
lysts believe that his strong back-
ground in retail banking may lead
Jenkins to cut back the investment
banking arm, which was built up by
his predecessor Bob Diamond.
Basic salaries make up a minority
of top staffs total pay, limiting the
total savings from such a move.
Barclays top eight senior staff by
pay received basic salaries of rough-
ly 700,000 in 2011, as well as bonus-
Barclays mulls
an investment
bank salary cut
BY TIM WALLACE
es of between 1.23m and 4.5m and
long-term incentive awards of up to
2.25m.
I think bankers will have to bear it
in all major banks headcount is
coming down and salary costs are
being reduced, said KPMGs Klaus
Woefte.
If you are in the top two per cent
in your bank a hedge fund might be
interested. But for others, there are
not many choices. Barclays wouldnt
be considering doing this if they
were taking a big risk with their
workforce.
6
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UBS prepares to axe 10,000
jobs and refocus its operations
SWISS banking giant UBS is
expected to announce up to
10,000 job cuts in a deep new
round of cost cutting as it battles
to keep expenses under control to
shore up profits in weak market
conditions.
The bank is one of many which
is shrinking its balance sheets in
response to new capital
regulations, while weak market
conditions have also hurt
revenues in its securities arm.
It is expected to focus instead
BY TIM WALLACE
on the wealth management and
private banking businesses, where
it has had more success than
many of its closest rivals in recent
years.
After weeks of speculation
about the banks plans to keep
costs under control, reports
suggest the bank could be looking
to cut up to 10,000 jobs, or 16 per
cent of its workforce.
That is likely to replace the
previous 3,500 target announced
last year.
Many of these are likely to fall in
London rather than UBS Swiss
headquarters.
The bank declined to comment
on the plans.
UBS AG
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12.23
26Oct
Barclays chief Antony Jenkins wants to rebalance spending from staff towards shareholders
Barclays PLC
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26Oct
FRENCH bank BNP Paribas will
today reverse the trend of
European banks cutting back as
US banks expand, by launching a
local custody service in the US.
The bank has taken on 60 staff
this year to launch the unit,
which can now provide post-
trade services to multi-national
banks, brokers and institutional
investors.
Instead of sub-contracting
investors funds out to local
providers in the US, as it has
been forced to do in the past, the
new service means BNP Paribas
can now provide the service
itself.
As a result, UK institutions
using BNP Paribas for global
BNP Paribas opens new unit in
US to expand custody offering
BY TIM WALLACE
custody now have an average of
more than 90 per cent of their
assets within the bank.
North America is a crucial
market to investors whether on
the buy or sell side, in Europe or
Asia, said regional head
Claudine Gallagher.
Processing our first
transactions as a local custodian
in the US will be an important
milestone in our commitment
towards supporting US investors
and an increasingly global client
base.
The new set up also means the
bank can more easily win
business from US mutual funds
on Friday BNP Paribas
announced it had gained the
mandate of Edgewood L Select,
the Luxembourg-domiciled unit
of a US fund.
SIR Christopher Gent, the chairman
of GlaxoSmithKline and one of the
UKs most respected businessmen, is
to step down from the board of the
pharmaceuticals giant.
A person familiar with the situa-
tion said the company had already
begun the search for a successor to
Sir Christopher, who has chaired the
firm since January 2005. Glaxo
declined to comment, but it is under-
stood he is unlikely to leave for
another two to three years.
The 64-year olds impressive career
includes five years as chief executive
of Vodafone, where he was credited
with building the firm into the
worlds largest mobile phone busi-
ness. In 2000, he oversaw the largest
overseas acquisition by a UK compa-
ny when Vodafone successfully com-
pleted a 112bn hostile
takeover of rival
Mannesmann of
Germany.
At Glaxo he led the
search for a replacement
to Jean-Pierre Garnier, the
former chief executive,
appointing Sir Andrew
Witty as his successor
in 2008.
Sir Christopher
Gent to retire
as Glaxo chief
BY KASMIRA JEFFORD
BRITAIN is slipping down the rank-
ings of the most desirable investment
locations, according to a global study
of businesses out today from profes-
sional services firm BDO.
And mid-sized British firms are
increasingly being forced to look
abroad for investment opportunities
thanks to the weak economic outlook
domestically.
The UK is now the seventh biggest
investment destination, the study
found, down two places from fifth in
2011, as Brazil and Russia race up the
leaderboard ahead of Britain.
That leaves 45 per cent of chief
finance officers outside Britain look-
ing to invest in the country, largely
favouring it as a safe haven relative to
the turmoil elsewhere in Europe.
And one third of UK firms said they
had no choice but to look to invest
abroad, rather than at home, as the
domestic economy is so weak.
The study found 82 per cent of
Weak economy
makes UK firms
invest overseas
BY TIM WALLACE
British firms surveyed are optimistic
about investing abroad even though
many fear the new challenges interna-
tional expansion brings.
Currency fluctuations are a worry
for 33 per cent, while 38 per cent of
those who are concerned worry about
foreign regulations, and 31 per cent
fear weak economies abroad.
As a result, they are keen to avoid
weak areas like Greece and Spain, with
45 per cent looking to invest in the
BRIC economies, 27 per cent in the US,
21 per cent in Germany and 15 per
cent in France.
UK mid-caps find themselves in a
challenging situation. Pushed abroad
by conditions at home, they are pursu-
ing growth overseas but in some
instances are lacking in awareness as
to how to address the real challenges
involved, said BDOs Kim Hayward.
To give their firm a competitive
edge overseas, it is crucial to do thor-
ough research into target markets,
choose the right local adviser or part-
ner and take things one step at a time.
7
NEWS
cityam.com
U
BS I nvest ment Bank A
winning partnership it says on
the Swiss financial services
firms website. It might want to
rethink that slogan after it announces
a much-anticipated programme of
cuts this week. They are apparently set
to stretch over three years and remove
some 10,000 jobs or almost a sixth of
its global workforce. In particular they
look set to take a hatchet to UBS fixed
income division, with the axe likely to
fall hardest in London, all in a
desperate effort to shrink back the
investment bank and concentrate on
areas where UBS thinks it has a
chance of, well, winning especially
with the Kweku Adoboli case still
rumbling embarrassingly along.
Those left at UBS might just find
themselves enjoying in the medium-
term the benefits of its restructuring
into a stable business with more
focus on high-end investment advice,
assuming the firm can generate
sufficient return on equity as a
result of turning its back on the high
stakes world. Meanwhile its seismic
decision will leave bigger players
positioning themselves to take
advantage of the business and
talent UBS is offloading.
PAY CUTS AT BARCLAYS
For investment bankers, its clear
this crisis is not over yet. Just as UBS
is poised to start cutting jobs,
Barclays is said to be looking at
slashing top salaries in half.
The fact such an option is being
considered is proof of how tough
market conditions are right now,
and of how widespread the pain is.
Revenues per banker have fallen
because of the downturn and
because banks are having to hold
more capital, the profitability of
operations has fallen even more
sharply. Individual bankers have less
leverage in terms of their ability to
move elsewhere, especially now with
thousands more about to be added
to the pool of available talent.
That said, in Barclays case, the
cuts may be less painful than they
sound. Using 2011 figures, if a top
salary of 700,000 (only awarded to
the top eight executives) was cut by
50 per cent, when combined with
maximum bonus and long-term
incentive payments that would
amount to a cut in annual rewards
of only 10 per cent still significant,
but hardly as headline-grabbing.
The irony of course is that
investment banking salaries have
been pushed up the more bonuses
have come under pressure. As, for
instance, when RBS revealed in
February that bonus cuts last year
had been largely offset by increases
in basic pay. Its not so clear that the
pendulum will now swing back the
other way with salaries down but
bankers less mobile, bonuses wont
necessarily see a compensating rise.
Barclays is taking in some ways a
bleaker gamble than UBS, which is
simply admitting it was playing in
the wrong league. By betting on the
idea that its staff wont be able to
vote with their feet, it is staking out
its belief in the sector staying
depressed for the immediate future.
Thats not a bright message whether
you still have a job or not.
BOTTOM
LINE
MARC SIDWELL
Bleak times for investment bankers with few options
BRAZIL AND RUSSIA ARE NOW
MORE POPULAR INVESTMENT
DESTINATIONS THAN THE UK
2012 2011
CHINA
USA
BRAZIL
INDIA
GERMANY
2
3
4
5
1
2
6
4
3
1
RUSSIA
UK
AUSTRALIA
UAE
MEXICO
of UK rms are
looking to invest in
BRIC nations
of Russian investors
are considered likely
to take risks
45%
60%
7
8
9
10
8
5
11
9
13
6
Sir Christopher Gent
A HUGE spike in divestment activity
by businesses has boosted
shareholder returns through the
recession, according to a report out
today from Deloitte.
Firms globally have divested more
than $335bn (208.1bn) of assets
since 2008, with European firms
accounting for 65 per cent of big sell-
offs since the crisis began. The study
looked at the share performance of
$500m of assets in the recession.
It found the buyers and sellers
outperformed their relative indices
89 per cent of the time.
Divestments are increasingly
important to the business strategies
of firms we expect to see more
active disposal of assets to refocus on
core businesses and create strong
platforms for growth, said Deloittes
Angus Knowles-Cutler.
If well communicated to the
markets, such divestments can
create greater shareholder returns.
The report found financial
pressures and regulatory
requirements drove most
divestments through the recession,
while now they are increasingly
based on a strategic realignment
towards growth.
The study also found emerging
market firms are taking advantage
of the rise in divestments they
snapped up 23 per cent of assets on
sale last year.
Shareholders
boosted by
asset sell-offs
BY TIM WALLACE
THE NUMBER of private equity deals
in the UK fell for the fourth consecu-
tive quarter in the three months to
September, according to new
research out today.
Just 77 private equity deals were
struck in the last quarter, profession-
al services firm BDO revealed today,
as poor funding conditions made it
difficult for firms to borrow.
That is the lowest level since the
middle of 2011, when 68 were
recorded, and the second lowest
number in two years.
As well as struggling to borrow, pri-
vate equity firms are also having dif-
ficulty raising new funds.
But on top of that, a lack of assets
coming to market has pushed up
their prices, with deal values up 11
per cent, again making it harder to
make a good return.
However, the number of trade
deals acquisitions by firms
increased, hitting 466 in the three-
month period, its highest level since
the third quarter of last year.
These figures show that cash-rich
corporates are gaining ground by
Private equity
deal volumes
plunge again
BY TIM WALLACE making strategic deals for growth
and synergies whilst private equity
deal flow is being hampered by the
current funding environment, said
BDOs Peter Hemington.
Theres been a huge shift in pri-
vate equity deal structures in the
past few years where deals, which
once typically comprised of 60 per
cent debt to 40 per cent equity, are
now funded by around 70 per cent
equity. Given this structure relies
more heavily on strong earnings
potential to provide sufficient
returns, private equity companies
are struggling to compete with cor-
porates on anything but the highest
quality businesses.
Private equity deal numbers fell again last quarter
Q312 Q212 Q112 Q411 Q311 Q211 Q111
100
0
200
400
300
500
600
Q310
Trade acquisitions Private equity acquisitions
83
98
68
89
94
96
86
77
Q410
78
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NEWS
cityam.com
BANK of England deputy governor
Charlie Bean said yesterday that
there was reason for some
optimism going forward, but
warned against getting overexcited
about the latest GDP figures
showing Britain pulled out of
recession in the third quarter.
We should avoid getting
overexcited, Bean told Sky News,
adding that growth could be weak
in the fourth quarter.
We do think theres reason for
some optimism going forward.
Some of the headwinds that weve
been struggling against in the past
Banks deputy governor sees
glimpse of economic progress
BY HARRY BANKS couple of years will be abating
somewhat, he said.
Theres been some progress in
dealing with the Eurozone
problems still a long way to go
there but again slightly better
picture and also some signs that
maybe conditions are improving in
the banking system.
Beans remarks came alongside a
defence by chief secretary to the
Treasury Danny Alexander of the
governments spending cuts on the
BBCs Sunday Politics show.
Alexander said the judgement we
made when we started out was the
right one, and its a judgement
weve got to stick with.
Charlie Bean of the Bank of England warned against overexcitement at the GDP figures
BRITAINS four mobile operators
could reach a deal in the next few
months that would see them share
each others networks in the event of
blackouts, the boss of the UKs most
popular network has said.
Olaf Swantee, the chief executive of
EE, told City A.M.: I've suggested to
my competitors that we talk about
what are some of the emergency
measures that we could put in place
[in the case of outages].
In the next couple of
weeks hopefully we can
have some of these dis-
cussions in this area, he
said, adding that he
hoped a solution would
be finalised next year.
EE, which owns
Orange and T-
Mobile and
is set to
launch its
h i g h
speed 4G
mo b i l e
internet
network,
Mobile boss to
hold talks over
shared network
BY JAMES TITCOMB
has 27m customers, meaning it
would face the biggest fallout from
the sort of outage that has plagued
O2 over the summer. O2 has seen two
blackouts in three months, affecting
millions of customers.
Swantee suggested that there is
more scope for the operators to work
together after years of fighting
between the companies. The UKs
four major operators EE, O2,
Vodafone and Three recently agreed
to a timetable for the rollout of 4G
over the next year, putting an end
to years of legal threats.
We dont need peace to have
an industry that works well, we
can have a very competitive
environment but what you do
need is an industry that doesn't
use lawyers all the time to slow
things down, Swantee said.
I hope we are beyond that
and I think so. I think the
industry has certainly
learned.
EEs 4G network will
launch tomorrow.
Swantee wants to see a
deal reached next year
THE shadow chancellor has this
morning upped pressure on Prime
Minister David Cameron to push for
cuts to the European Unions budget,
saying that Labour will lobby against
any increase in EU spending plans.
Labour will argue against the
proposed increase in EU spending
and instead support a real-terms cut
in the budget, Ed Balls and shadow
foreign secretary Douglas Alexander
write in The Times newspaper today,
saying they fear that the Prime
Minister is throwing away a genuine
opportunity to deliver a budget that
is best for Britain and right for the
EU.
The Prime Minister will face a
commons debate on the UKs
contribution to the EU budget on
Wednesday, with suggestions that
prominent Tory MPs could join
Labour in calling for a block to any
rise in spending.
The EC wants a five per cent
increase in the overall budget for
2014-2020, a proposal that has been
backed by the European Parliament.
Last week the Prime Minister
indicated he would block any above-
inflation rise in spending.
The UK must determine its
negotiating position ahead of a
summit late next month, where
European leaders will meet to
finalise the EUs long-term budget
plans.
Labour lobbies
Cameron over
EU budget cuts
BY ELIZABETH FOURNIER
10
NEWS
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A

D
a
i
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l
e
r

B
r
a
n
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Ocial government fuel consumption in MPG (litres per 100km) for the new M-Class Special Edition: Urban: 34.4 - 38.7 (8.2 - 7.3), Extra Urban: 42.2 - 50.4 (6.7 - 5.6), Combined: 39.2 - 44.8
(7.2 - 6.3). CO2 Emissions 194-158 g/km. Model featured is a ML 250 BlueTEC Special Edition at 44,870 on-the-road including optional Intelligent Light System at 1,630.00. (OTR price Inc. VAT, delivery, 12 months Road Fund Licence, number plates, rst registration fee and fuel).
*Finance oer based on an ML 250 BlueTEC Special Edition on a Mercedes-Benz Agility Agreement, on 10,000 miles per annum. Excess mileage charges may apply. Payable if you exercise the option to purchase the car. Includes optional purchase payment, purchase activation fee and Retailer deposit contribution.
Orders/credit approvals on selected M-Class models between 1 October and 31 December 2012, registered by 31 March 2013. Guarantees and indemnities may be required. Oers cannot be used in conjunction with any other oer. Some combinations of features/options may not be available. Please contact Retailer
for availability. Terms and conditions apply. Credit provided subject to status by Mercedes-Benz Financial Services UK Limited, MK15 8BA. Prices correct at time of going to print 10/12.
Representative Example: ML 250 BlueTEC Special Edition
The new M-Class.
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On-the-road
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contribution
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Duration of
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Amount of
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Representative
APR
4.6%
JAMES Murdoch is set to survive
campaigns calling for him to be
thrown out of BSkyB at Thursdays
annual meeting, with investors
ready to approve his re-election as
a non-executive director.
Advocacy groups FairPensions
and Pirc have hit out at Murdoch,
claiming his father Ruperts 40 per
cent stake in BSkyB means he does
not have the independence a
person in his position should.
He has also recently been
criticised by broadcasting
regulator Ofcom, which said in a
recent report that Murdoch
BY JAMES TITCOMB repeatedly fell short of the
conduct to be expected of him.
However, anger looks set to be
more subdued than at last years
meeting, when Murdoch then
chairman saw around half of
votes not controlled by his father
tabled against him.
Murdoch quit as chairman in
April but remains on the board.
There has not been a
particularly positive response
from shareholders, a spokesman
for FairPensions said, adding that
allegations embroiling Trinity
Mirror in the phone hacking
scandal have reduced pressure on
the Murdochs.
James Murdoch stepped down as chairman earlier this year but remains on the board
Shareholder pressure on BSkyBs
Murdoch eases ahead of meeting
EU BUDGET: Page 17

CABINET minister Eric Pickles yester-
day said the government should be
very, very, very reluctant to intro-
duce legislation to regulate the media
industry,
My view is that we should always
balance in favour of a free press, he
added.
His comments are one of the clear-
est signs yet that senior Conservatives
are uneasy with any move to intro-
duce state control of the media. They
come as Lord Justice Leveson puts the
finishing touches to his report on the
future of press regulation, which is
expected to be published next month.
The judges inquiry, prompted by
the phone hacking scandal at the
News of the World, is expected to rec-
ommend some form of statutory leg-
islation to replace the voluntary Press
Complaints Commission.
Something that characterises the
British press is that it is good at expos-
ing corruption and it is good at going
to places where other press wouldnt,
Pickles warns
against state
control of press
BY JAMES WATERSON Pickles told Sky News Murnaghan pro-
gramme.
I think it was Thomas Jefferson who
said that for a free society to operate
then the river of a free press had to
flow without restriction.
Instead the minister hinted that he
preferred some form of self-regula-
tion: The press are looking towards
finding a good way in which people
who have got a legitimate complaint
can find a resource, then thats right.
Labour has continually pushed for a
legislative solution to press regulation
and yesterday the partys deputy
leader Harriet Harman insisted that
the status quo has failed.
I dont think self-regulation of the
media should be given another
chance. Its absolutely clear Leveson
has given a great many revelations,
she told the BBCs Andrew Marr show.
Its clear that business as usual has
nothing to obtain. Theres not a prop-
er press complaints system that
ensures, where the press gets it wrong,
the individual can complain and that
will be looked at.
VIRGIN Atlantic boss Steve
Ridgway hopes to contest a
decision to award easyJet a licence
to fly to Moscow, calling the
situation bizarre.
The airline is combing through
last weeks decision by the Civil
Aviation Authority to allow easyJet
to operate services to the city,
under an arrangement with Russia
that allows just two carriers from
each country to use the route.
We live in this bizarre world
where were bilaterally
constrained, he told City A.M.
Actually, easyJet and Virgin should
be both able to travel to Russia.
Thats what we need to open
markets up for consumers. Its very
unfortunate that we had to fight
each other for this, we still dont
Virgin Atlantic pushes back over
easyJets exclusive Moscow deal
BY MARION DAKERS IN MUMBAI
understand and were looking at
the judgement. Virgin founder Sir
Richard Branson is this week
meeting with Russian officials to
push for a rule change.
Ridgway also defended Virgin
Atlantics decision to open up talks
with an unnamed aviation alliance,
something the firm has criticised
in the past. Historically weve been
sceptical, and thought they were
unstable, but for many years now
weve said that if the opportunity
came along and it was the right one
for everyone, we wouldnt say no.
He could not say if a deal will be
done before he steps down next
year, saying the firm is instead
focused on returning to profit. His
successor will be announced before
Christmas, with chief commercial
officer Julie Southern believed to
be the frontrunner.
13
NEWS
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WEDNESDAY
Eric Pickles yesterday said it is massively important to secure freedom of the press
Bishop accuses finance of being
a cuckoo in the nest for Britain
THE frontrunner to replace Rowan
Williams as Archbishop of
Canterbury told an audience of
financiers in Zurich on Friday that
finance in Britain was in fact the
cuckoo in the nest that pushed all
the other fledgling industries out
to die. The Right Reverend Justin
Welby, who was appointed Bishop
of Durham in September 2011, is a
member of the Parliamentary
Commission on Banking Standards
and was an oil executive before he
joined the church.
Urging replacement, rather than
repair of business as
usual for financial
services, Welby said:
Government
support should be
limited only to those
banks and financial
institutions that have
a clear and explicit
social value. He added
that all banks must
be allowed to fail,
the process of
defining
resolution is if
anything more important than
defining regulation.
There is no longer confidence
in banks as safe, in banks as
virtuous, or in bankers as being
part of the same world as the
rest of us and with the same
values and desires as the rest of
us. That loss of confidence
may be unfair in many
cases I would argue
that it is but it is a
reality
Justin Welby said banks
must be allowed to fail
THE Square Mile is positively
basking in sporting glory these
days.
For a start, five giant rugby
balls, one to represent each com-
peting nation, were planted in
Lime Street to mark the launch
of the QBE Internationals taking
place in November.
In further sporting City news,
Devonshire Square was turfed
over on Friday, ahead of yester-
days NFL American football
game between the St Louis
Rams and New England
Patriots at Wembley Stadium.
Mayor Boris Johnson greeted
the UKs American football fans
to the stadium last night in
classic style, showing his patri-
otic allegiance by welcoming
them to this glorious descen-
dent of rugby union football.
Aon, the insurance and rein-
surance brokerage, has just
become the sponsor for the NFL
in the UK, and what better way
to celebrate than by painting
the City green with a tempo-
rary football pitch?
Though former NFL giant
Cecil Martin was on hand to
play ball, The Capitalist hears
that the Rams cheerleaders
received the warmest recep-
tion.
NFL player Cecil Martin (left) and
Aons Sophie Apostolou (right)
Five giant rugby balls are installed in Lime Street, between the Lloyds
and Willis buildings, to mark the launch of the QBE International Series
14
cityam.com
cityam.com/the-capitalist
THECAPITALIST
ROYAL weddings bells are soon to
be ringing as the future nuptials
between Princess Madeleine of Sweden,
30, and financier Christopher ONeill,
38, have now been officially announced
and accompanying engagement
photographs (right) posed for. London-
born ONeill has worked at NM
Rothschild & Sons and is currently a
partner at investment firm Noster
Capital. Reflecting on his marriage into
Scandinavian royalty, ONeill said: l
hope I will have the opportunity to visit
Sweden a little more often now.
EDITED BY CALLY SQUIRES
Got A Story? Email
thecapitalist@cityam.com
Sports and the City
IN BRIEF
Opel restructuring talks drag on
nGeneral Motors loss-making unit
Opel may need between two and three
more months to reach a deal with
German unions on a restructuring plan
that could see thousands of job cuts and
the closure of its Bochum factory in 2017,
a union spokeswoman said yesterday.
Management of Opel and workers had
agreed on Friday to extend a previous 26
October deadline for the negotiations
which are being conducted on the basis
that all four German plants will be
protected from closure through 2016.
STRIKING workers have reached a deal
with platinum giant Anglo American
Platinum (Amplats) over the weekend
to reinstate 12,000 miners sacked for
an illegal strike, which could end the
last major industrial action rocking
South Africas mining sector.
Months of often violent wildcat
strikes have cut production in the
platinum and gold sectors, raising
concerns about slowing economic
growth as well as awkward
questions about President Jacob
Zumas management of the most
damaging labour strife since the
end of apartheid in 1994.
They agreed to reinstate all the
dismissed workers on the provision
that they return to work by
Tuesday, Lesiba Seshoka,
spokesman for the powerful
National Union of Mineworkers,
said at the weekend.
Amplats said in a separate
statement it had reached the deal
with the unions and offered
sweeteners such as a one-off
hardship payment of 2,000 rand
(144) to facilitate the return. The
End in sight for
platinum strike
in Amplats deal
BY HARRY BANKS strike has lasted about six weeks and
crippled production.
The deal at Amplats comes as
Cynthia Carroll, the chief executive
of parent Anglo American,
announced her resignation on
Friday, after coming under pressure
from investors over the firms
lagging share price and continued
dependence on strike-hit South
Africa.
Anglo owns 77 per cent of Anglo
American Platinum. Although
responsible for 24 per cent of its
parents 2011 revenue, Amplats
brought in just eight per cent of
total operating profit because of
soaring costs.
15
NEWS
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HITACHI, Japans largest
industrial electronics maker, is
close to buying British nuclear
new-build project Horizon, two
people familiar with the matter
told Reuters this weekend.
Hitachi has made the best offer
and has a good chance to get
Horizon, said a source familiar
with the matter.
Japanese media said on Saturday
the deal was expected to be worth
over 50bn yen (390.1m) while
analysts have put the value of
Horizon at about 500m (401.3m).
Horizon was put up for sale by
Nuclear deal on the Horizon for
Hitachi as board nears approval
BY CITY A.M. REPORTER its owners, German utilities E.ON
and RWE, in March, as Germanys
decision to pull out of nuclear
power hurt their finances.
Hitachi is expected to hold a
board meeting tomorrow to
approve the deal and announce it
later that day, both the Asahi daily
newspaper and Kyodo newswire
reported, citing sources familiar
with the matter. Hitachi officials
were not immediately available to
comment. Officials at E.ON and
Horizon declined to comment,
while a RWE spokesman said: We
are in the final stages. We will
probably say more in the coming
days.
The Japanese electronics maker looks close winning the UKs new-build nuclear project
Chinas Sinopec sees profits fall
nChinas Sinopec, Asias largest refiner,
posted a 9.4 per cent fall in third-quarter
profit yesterday after its petrochemical
business swung to a loss due to the
slowing Chinese economy, offsetting
hikes in gasoline and diesel prices. Net
profit sank to 18.3bn yuan (1.81bn) in
July-September from 20.22bn yuan a
year earlier, Sinopec said in a filing with
the Hong Kong stock exchange. For the
first nine months, Sinopec posted a net
profit slump of 30 per cent.
BMW strikes anti-crisis staff deal
n Germanys BMW could endure a 30
per cent slump in sales without posting
losses or having to lay off staff thanks to
an anti-crisis package agreed with staff,
Der Spiegel reported yesterday. The deal
allows the car maker to scrap shifts,
enforce holidays during downturns and
remove limits to overtime, the magazine
said. Our agreement with workers (of
late September) provides for a whole
bunch of flexibilisation measures, a
BMW spokesman said. The goal of the
plan is to preserve jobs.
OVERSEAS governments are
increasingly likely to target tax
evasion by UK-based foreign
nationals, according to figures
released today.
HMRC received 1,852 requests for
information about individuals from
overseas tax authorities in the 2011-
12 financial year, according to law
firm Pinsent Masons.
This is an 18 per cent increase on
the previous year and is driven by
Londons growing status as a hub for
the worlds ultra-rich and the
desire among their mother countries
to increase their tax take.
In 2011, the most requests for
information came from Norway
(577), followed by France (225), Spain
(92), and India (37).
The expertise of London in
wealth management makes it a
stable haven for individuals looking
to protect their assets from political
or economic instability overseas,
said Phil Berwick at Pinsent Masons.
As individuals move their assets
to the UK, their home tax authority
will take a keen interest in how
those assets have been taxed.
The requests were made under
Double Taxation Agreements, which
prevent an individual being taxed in
two different countries. But they also
allow governments to find out the
value of assets that an individual has
declared overseas.
Overseas tax
collectors aim
for UK workers
BY JAMES WATERSON
THE GOVERNMENT may be forced to
scrap VAT on ebooks if a European
legal challenge from a London law
firm is successful.
Berwin Leighton Paisner (BLP), act-
ing on behalf of an unnamed client,
is challenging HM Revenue and
Customs (HMRC) in the European
Court of Justice over its decision to
charge the standard 20 per cent rate
of VAT on ebooks while printed
books do not have the tax applied.
Alan Sinyor, head of VAT at
BLP, said that ebooks and print
books should qualify for fiscal
neutrality on the grounds that
they are the same from the
perspective of meeting the cus-
tomers needs.
If BLP is successful,
HMRC may have to
remove VAT on
ebooks, which
could have a
knock-on effect
of reducing
their price.
Ho we v e r ,
according to
HMRC taken to
European court
over ebook VAT
BY JAMES TITCOMB
VAT expert Richard Asquith at
accounting firm TMF, one unintend-
ed consequence of a BLP victory could
be that the EU orders the UK to levy
VAT on printed books.
The UK was only allowed to keep
the reduced rate on printed books
because they already had it when
they joined, so if [BLP] wins, the ques-
tion is, which rate should it be?
Asquith said.
Most member states say ebooks
should be at the top rate, so [raising
print prices] is a possibility.
The EU last week ordered France
and Luxembourg to scrap their
reduced rates of VAT on ebooks
and charge the standard rate, a
move that will hit companies
such as Amazon, which bases its
ebook operation in Luxembourg.
It is also set to launch a con-
sultation on the issue, and
is keen to reach a Europe-
wide agreement.
The consultation is a
more likely solution,
Asquith said.
The Treasury currently
takes full VAT on ebooks
16
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Demonstrators protested in Madrid on Saturday against the Spanish governments
spending cuts. The debt-stricken Eurozone nation is facing ever-stronger calls to seek a
bailout. However, European Central Bank (ECB) policymaker Ewald Nowotny said
yesterday that Spain has no immediate need of bond-buying help from the ECB.
FRESH PROTESTS IN SPAIN AS THE ECB HOLDS FIRE
GREECES foreign lenders have
refused to make any further
concessions on changes to labour
laws contested by a junior coalition
partner, the countrys finance
minister said yesterday, prolonging
an impasse on a crucial austerity
package.
Athens has been locked in talks
with its EU and IMF lenders on the
austerity package for months, but a
final agreement has been held up by
the small Democratic Left partys
refusal to back the new wage laws.
The party, which says the changes
undermine labour rights, has said it
will vote against the measures when
they are put to a parliamentary vote
next week.The party has demanded
the troika of EC, ECB and IMF
lenders allow a national wage
agreement to apply to all employees
rather than just unionised workers.
It also wants lenders to withdraw
plans to axe a 10 per cent salary hike
employees get when they marry.
The troika has not accepted the
(partys) demands, finance minister
Yannis Stournaras told reporters.
A government official said Athens
would present the bill in parliament
on 5 November.
Greek lenders
refuse to make
concessions
FACEBOOK is braced for a major test
of confidence today when millions of
new shares in the company flood the
market, opening the possibility of its
shares dropping after recent gains.
Today is the first time that many
Facebook employees will see shares
freed up after the company went
public in May. It is the second wave
of new shares to hit the market after
the first tranche was released on 16
August, when the companys stock
fell as much as seven per cent.
However, the effect of todays
unlocked shares could be more
severe, since many of them are
owned by Facebook employees look-
ing to cash in, rather than by early
investors. Some 249m shares will
enter the market, increasing the
pool by around a third.
The end of this lock-up period was
originally set for two weeks ago, but
Facebook faces
further falls as
shares released
BY JAMES TITCOMB
was postponed until today so that
shareholders could make sense of
Facebooks latest earnings report,
which was released last Tuesday.
It showed that the company may
have turned a corner with regards to
making money on mobile phones,
which users are increasingly access-
ing Facebook from. It now makes 15
per cent of its advertising income
from mobile adverts. Last weeks
results sent shares up 24 per cent.
EU officials to consider 50bn of
budget cuts ahead of summit
EUROPEAN Union governments will
debate a cut of at least 50bn
($40.2bn) this week as the starting
point for negotiations on the blocs
proposed 1 trillion long-term
budget, a source familiar with the
issue said.
The cut will be proposed in the
latest EU negotiating text on the
blocs spending plan for 2014-2020,
but is unlikely to be deep enough
to satisfy Britain, Germany, France
and other net budget contributors.
They want strict limits on EU
spending to reflect the austerity
imposed by national governments
to reduce debt, and called for cuts
of 100-200bn to the total proposed
by the EUs executive, the European
Commission.
The proposal is also likely to
anger Poland and other former
communist EU countries who are
the major beneficiaries of EU funds,
and oppose any cuts to the
Commissions blueprint which they
argue is vital for their future
economic growth.
As I see it now, the reduction
from the Commission proposal will
be 50bn plus. That will be the basis
for negotiations, said the source,
who spoke on condition of
anonymity.
The new EU negotiating text will
be the first to include firm figures,
and marks the start of the decisive
phase of talks between
governments hoping to reach a deal
at a 22-23 November summit of EU
leaders. The text will be used as the
basis for bilateral talks ahead of the
summit between governments and
European Council president
Herman Van Rompuy, who will
chair the November talks.
In order to generate the proposed
savings, the revised document will
specify cuts to all areas of EU
spending including agriculture,
infrastructure investment and
research.
Facebook Inc
20
21
23
22
24
25 $
21.94
26Oct
17
NEWS
cityam.com
Exclusive VIP Packages Available
PRESENTED BY
STAFFLINE, the blue-collar
recruitment agency, revealed today
it has acquired staffing services
firm Select Appointments for an
undisclosed sum.
The AIM-listed company, which
specialises in food, manufacturing
and retail industry placements, has
been on the lookout for further
acquisitions to expand into the
white-collar market.
Select, which runs 31 franchises
in the UK, is made up of two arms
one which places office workers in
the hospitality sector and the other
which specialises in warehousing,
engineering professional
recruitment services.
The acquisition of Select
Staffline acquires recruitment
agency Select Appointments
BY KASMIRA JEFFORD
Appointments is an exciting
strategic step for Staffline as we
seek to further broaden our
operational reach, Andy Hogarth,
Staffline chief executive said.
Its established franchise
network will provide a stable
footing for the group as we seek to
expand our services into the white
collar staffing market, he added.
The acquisition is being funded
out of an existing bank facility and
will be earnings neutral for the
first year, Staffline said.
It plans to triple the number of
Select franchises in the UK over the
next three years.
Staffline, which runs the
governments welfare-to-work
programme in three regions,
posted flat profits of 2.8m in 2012.
BOISDALE, the Scottish seafood and steak restaurant chain, swung back into profit in the
year to April 2012 and almost doubled its turnover to 10.5m. Companies House filings
showed the group made pre-tax profits of 235,000, up from a 585,000 loss in the year
to April 2011. Boisdale described the results as a Curates egg good in parts and said it
expects to improve profits this year.
BOISDALE RESTAURANT CHAIN RETURNS TO PROFIT
THE ECONOMYS weak recovery has
solid foundations, businesses said in
a survey out today, but the same
firms are much less optimistic about
their own operation.
Businesses confidence in the
wider economy hit the highest level
since April, with 43 per cent of firms
reporting confidence in the recovery,
and just 26 per cent giving more
pessimistic views, in the Lloyds Bank
business barometer for October.
But this six-month high comes in
contrast to a steep drop in firms
sentiment surrounding their own
prospects. Forty per cent of firms
said their prospects were going up
over the year down from 51 per
cent in September while 14 per
cent forecasted a worsening
situation, leaving a net balance of 26
per cent.
It is good to see that recent policy
measures are having a positive
impact on how businesses think the
economy is faring, compared with
three months ago, said Lloyds
economist Trevor Williams. Williams
suggested Eurozone woes might be
part of the explanation for the slide
in confidence in their own
prospects.
Companies say
the recovery is
back on track
BY BEN SOUTHWOOD
HOUSE PRICES continued to slide in
October, data from Hometrack
revealed today, as an increase in sup-
ply outstripped a smaller boost to
demand.
The average house price slid 0.1 per
cent in October, the data showed,
after equal falls in August and
September. This fall was driven by a
1.4 per cent increase in property list-
ings outweighing the 0.3 per cent
growth in new buyers.
Of all postcode districts, just 5.7 per
cent saw price increases, compared to
some 31 per cent reporting that prices
declined.
But Hometrack research boss
Richard Donnell preferred to look on
the bright side, saying: Taking a
broader view of the market, year-on-
year house price inflation is currently
registering the lowest level of price
falls for two years currently minus
Rise in supply
pushes house
prices down
BY BEN SOUTHWOOD 0.4 per cent.
This is down to a strong spring mar-
ket in 2012, and a steady firming in
underlying price levels in the north of
the country, Donnell said.
He also noted the 9.2 per cent rise in
sales agreed, which he says has been
driven by the reduced prices.
This more optimistic picture is also
reflected in Rightmoves consumer
confidence survey, also out today.
The proportion of respondents pre-
dicting prices will be up in 12 months
time increased from 22 per cent in
October 2011 to 29 per cent this
month, Rightmove says, driven by
improvements in the mortgage mar-
ket.
But the survey also revealed that
many are being hit with the negative
equity curse. Seventeen per cent of
those whose houses decreased in value
between 2007 and today found them-
selves with a mortgage worth more
than their house, the survey said.
Item says Cables business bank
will crowd out private lending
VINCE CABLES small business
bank will have little impact on the
economy, Ernst & Youngs Item
Club warned yesterday, due to a
lack of funds and competition
with private lending sources.
Small and medium enterprises
(SMEs) face a funding gap of
around 19bn over the coming
year, according to Item estimates,
but the governments British
Business Bank (BBB) will have a
capacity of only around 10bn.
The figures suggest that the
BBBs lending capacity could be
exhausted in less than a year, said
BY BEN SOUTHWOOD Carl Astorri at Item, who said
new funding could crowd
out existing funding
sources, diluting its
impact further.
We expect the BBB
will have to compete
for projects that are
commercially viable,
so we do not think the
scheme will have a
tangible impact on the
economy, he
added.
This came in a
climate of reduced
business lending across
the board, the report
showed. Corporate lending will
shrink 4.6 per cent over 2012
as a whole, hitting 429bn, the
lowest level since 2006,
Item forecasts.
Though Astorri said
2012 would be the last
year of severely depressed
lending, he did not put
this down to government
intervention, saying that
much government policy,
particularly capital
requirements, pushed in
the other direction.
Vince Cable spearheaded
plans for a state lender
19
NEWS
cityam.com
LONDON
2-3 NOVEMBER 2012
Queen Elizabeth II
Conference Centre
GEMMA GODFREY LOUISA BOJESEN DEBORAH FUHR MERRYN SOMERSET-WEBB MALCOLM PRYOR RUSS MOULD EOIN TREACY
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JO JO

Y IN THE COUNTRY TR N U O IN THE C

X YS FOREMOST EX E T S O OREM YS F

ES XPERTS ON INVES V IN N S O T R XPE

IN TING AND TRADIN D A R T D N A G TIN

G NG N
THE UKS employment statistics
will continue to surprise over the
next 12 months, a survey released
today suggests.
Businesses intend to keep
boosting rolls over the coming year,
according to a survey of 300 firms
together employing some 1.4m
staff, released today by the
Confederation of British Industry
(CBI) and recruiter Harvey Nash.
Some 35 per cent of respondents
said they expected their workforce
to be larger in 12 months time, as
opposed to just 15 per cent that
predicted a smaller staff a net
balance of 20 per cent.
The performance of our flexible
labour market in generating jobs in
Jobs miracle set to continue in
spite of broadly flat economy
BY BEN SOUTHWOOD
a sluggish economy is a mini-
miracle, said Katja Hall at the CBI,
Businesses look set to continue
with the positive but cautious
approach to hiring that we've seen
over the past couple of years.
Though the net balance for
graduate employment is a healthy
16 per cent for the next six months,
and the same figure for apprentice
numbers is 18 per cent, the data
also suggests that lack of
aspiration, role models and poor
working attitudes were excluding
disadvantaged youngsters from the
labour market. Too many...from
disadvantaged backgrounds are not
getting jobs because job
creation...requires skills and
attitudes which we do not help
them...develop, Hall warned.
UK AVERAGE HOUSE PRICE CONTINUES TO EDGE DOWN DESPITE LONDON STRENGTH
AVERAGE HOUSE PRICES
EDGED DOWN 0.1%
across the UK in October
VOLUME OF PROPERTY
LISTINGS EDGED UP
across
the UK
in October
1.4%
0.3%
5.7%
NEW BUYER
REGISTRATIONS
OF POSTCODES
SAW PRICE
INCREASES
31%
OF POSTCODES
SAW PRICES
FALL across the UK in October
VS
GAP BETWEEN ASKING AND ACHIEVED PRICES STAYS WIDE DRIVING WEAKNESS
PRICES
FALLING
PRICES
NEUTRAL
PRICES
RISING
Oct 2012 Oct 2010 Oct 2008 Oct 2006 Oct 2004 Oct 2002
14
12
10
8
6
4
2
0
S
iz
e
o
f
g
a
p
b
e
t
w
e
e
n
a
s
k
in
g
p
r
ic
e
a
n
d
s
a
le
p
r
ic
e
(
%
)
London
Midlands
Northern England
Southern England
SOURCE: Hometrack House Price Survey
20
EARNINGS season may be only half
over, but the focus on profits should
subside this week as investors turn
their attention to the coming presi-
dential election and Fridays jobs
data the last major economic indica-
tor before the 6 November contest.
More bellwether companies are set
to report results in what will be
another peak week of the earnings
season. Such a flurry of numbers nor-
mally holds Wall Streets attention,
and it can lead to market swings. But
volume and volatility may be slight
this week, with market participants
opting to remain on the sidelines
ahead of jobs data and the election.
The US governments October jobs
report will give a snapshot of the cur-
rent labour market. It could also give
a bit of a lift to President Barack
Obama, should it come out better
than anticipated, or help Republican
candidate Mitt Romney if it is worse
than forecast.
The Standard & Poors 500 Index fell
1.5 per cent last week, largely because
of a spate of earnings disappoint-
ments. The Dow Jones industrial aver-
age slid 1.8 per cent last week, and the
Nasdaq composite index dropped 0.6
per cent.
While the market at large may be
waiting on news events, individual
stocks could still be volatile as earn-
ings season grinds along. More than
half of the S&P 500 components have
reported results so far. This week,
though, will bring reports from some
marquee names such as Dow compo-
nents Chevron and Pfizer, as well as
S&P 500 stalwarts Visa, Ford Motor
and Starbucks.
C
ONFIDENCE in the UK economy may
take a knock this week, with
manufacturing data unlikely to
match the strong GDP news released
last week.
After last weeks upbeat news that the
UK has officially exited recession, the man-
ufacturing purchasing managers survey
(PMI) due on Thursday is expected to show
the sector contracted again in October.
Howard Archer at IHS Global Insight said:
It is evident that manufacturers still face
a tough environment. Domestic demand
for manufactured goods is handicapped by
current muted investment intentions,
careful consumers and tightening public
spending.
Meanwhile, The Bank of England is
expected to report today that mortgage
approvals for house purchases rose mod-
estly to 48,000 in September from 47,556 in
August and an 18-month low of 44,252 in
June. However that is still down 6.1 per
cent from 51,093 in September last year.
In corporate news, Barclays is set to kick
off the third-quarter banking results sea-
son when it updates the market on
Wednesday. It is expected to report a profit,
while Lloyds, which reports on Thursday,
is expected to be in the red because of fur-
ther provisions needed for PPI claims. RBS,
which has just left the asset protection
scheme, will give its results on Friday and
is expected to have just about broken even
in the third quarter.
Other companies expected to report
results this week include BAA Airports,
Imperial Tobacco, GlaxoSmithKline,
Standard Life, BSkyB, Royal Dutch Shell,
Legal & General Group, Smith & Nephew,
Admiral Group and Henderson Group.
BESTof theBROKERS
Barratt Developments PLC
p 194
192
190
188
186
184
185.82
26 Oct
BARRATT
DEVELOPMENTS
Rachael Applegate at
Panmure Gordon has
downgraded the builder
to hold, citing the
stocks 100 per cent rise
this year. She says the
rating is about right.
DASHBOARD CITY
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
FTSE
5,925
5,900
5,875
5,850
5,825
5,775
5,800
5,806.71
26 Oct
Debenhams
p 120
118
116
114
112
110
117.33
26 Oct
DEBENHAMS
Matthew McEachran at N+1
Singer has increased his
price target by 10 per cent
to 135p, and says buy
after a comprehensive,
confident presentation
from chief executive
Michael Sharp.
CPP Group PLC
p 13
12
11
10
9
11.75
26 Oct
CPP
Victoria Prior at JP
Morgan has lowered her
2013 operating profit
estimate for the card
insurer by a third to 19m.
However progress with a
FSA investigation into
mis-selling is positive.
TheCityUK
Gerry Grimstone has succeeded
Stuart Popham as chairman of
the City representative body. He
is chairman of Standard Life and
a member of Deloittes board.
Outgoing chairman Popham is
vice chairman of Europe, Middle
East and Africa (EMEA) banking
at Citigroup.
State Street
William Slattery has been appointed head of the financial
services firms global services business in the UK, Middle
East and Africa. He is currently head of State Streets
global services business in Ireland, Luxembourg and the
Channel Islands. Slattery previously worked for the Central
Bank of Ireland for 23 years, before moving to Deutsche
Bank.
Movehut
Harry Hill has been appointed chairman of the commercial
property firm. He was previously chief executive of
Countrywide, where he also founded Rightmove. Justin
Bates has been appointed chief executive of Movehut. He
was previously senior vice president of Keefe, Bruyette
and Woods, the investment bank.
CBRE
The commercial real estate services firm has announced
changes to its EMEA management structure. Martin
Samworth has been appointed to the role of managing
director, EMEA. He is currently managing director of
CBREs UK and Nordic businesses. Matthew Pullen has
been appointed managing director of UK business at
CBRE. Finally, Stephen Hubbard becomes the firms UK
chairman.
Bridge Trustees
The trustee services subsidiary of Eversheds has
appointed Julia Delaney as chief trust executive. She
previously worked as joint leader of PwCs northern
pensions assurance practice. Delaney is a chartered
accountant, and serves on the University of Sheffield
Management Schools advisory board.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
CITY MOVES
in association with
LONDONREPORT in association with
THE WEEK
AHEAD
in association with
Presidential
vote is focus
for investors
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
Confidence in UK economy may be
short-lived after production data
Y
OUNG people are the
lifeblood of London, like
any great city. They bring
the ideas, innovation, and
enthusiasm needed to drive
our economy forward.
Consequently, one of the most
damaging legacies of the recent
recession has been the growing
number of young people not in
employment, education or training
(Neets). In the capital alone, there
were 125,000 individuals aged 16-
24 that fell within this category
during the first quarter of 2012.
This is a damning statistic that
has a very real impact on
communities across London. A
generation is at risk of being
trapped in a cycle of
I
N 1956, the Queen flicked a
switch and Britains first nuclear
generated electricity surged into
homes from the Magnox reactor
at Calder Hall. This was the
worlds first large-scale nuclear power
station. A decade later, several Magnox
stations were producing power, but
investment in new electricity
generating capacity was still
insufficient. In the winter of 1964-65,
power outages deprived homes and
businesses of electricity.
The new Labour Government of 1964
was committed to establishing a
national planning regime to help
smooth the construction of new power
stations. Sound familiar? New
advanced gas-cooled reactors (AGRs)
emerged (alongside new coal plants)
possibly the worst energy policy deci-
sion taken in the UK between 1945 and
1990. The average length of time to
build reactors was ten years and it was
almost 20 years before output matched
planned capacity.
By 1980, the Thatcher Government
was left planning only one new
nuclear reactor, at Sizewell in Suffolk.
cityam.com/forum
In 2010, the UK
became over 50 per
cent dependent on
gas for its electricity
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.
22
TONY LODGE
Cost is key in the coalitions brave
decision to fire up nuclear energy
It finally came online in 1995, 15 years
after inception and following a pro-
longed public inquiry.
Since the commissioning of Sizewell
B in 1995, the British energy landscape
has changed radically. In particular,
the dash for gas created a major new
source of generation. A milestone was
passed in 2010 when the UK became
over 50 per cent dependent on gas for
the generation of electricity. Today,
over a third of all the gas used in the
UK is used for electricity.
Any major source of low carbon ener-
gy will initially be more costly than
traditional power generation from fos-
sil fuels. But, based on levelised costs
(with market or technology incentives
removed), nuclear power is cheaper
than the other large-scale low carbon
alternatives, including coal and gas
with carbon capture and storage. But
nuclear power stations are expensive
because of large upfront costs and the
long construction period. Confidence
is essential, but at what cost?
Britains most recent nuclear pro-
gramme is now more than two years
behind schedule. EDF Energy has
already indicated that it cannot build
its first new UK reactor by 2017, as ear-
lier hoped. The Department for
Energy now expects the first new
nuclear plant in 2019. Even this looks
optimistic.
But what price should Britain be pre-
pared to pay for new nuclear plants? If
a strike price the guaranteed price
paid for electricity from the plant
when completed is anywhere near
the 140 per megawatt hour (MWh)
required by offshore wind, we should
be surprised if EDF didnt line our
coast with nuclear plants, like France
in the 1960s, 70s and 80s. But this is an
absurdly high price. Anything close
would rightly destroy nuclears low
cost reputation and, with it, the case
for new nuclear. After all, 140 per
MWh is more than double the current
market price, and the Department for
Energy forecasts that electricity prices
will fall over the long term.
A challenge for the government is to
make the strike price negotiations as
transparent as possible. EDF has now
increased the cost of each proposed
reactor at Hinkley in Somerset by 40
per cent to 14bn in total. Why? The
outcome of the strike price negotia-
tion risks saddling householders and
businesses for a long time to come
with further costs the subsidy for
low carbon power is to be financed by
the consumer. This is why transparen-
cy and parliamentary scrutiny will be
vital. Strike price plans mean that,
when the market price for electricity is
below the level agreed with EDF, all UK
energy consumers will be liable for
subsidies to top up the difference.
But does nuclear need a subsidy?
Two 1,600MW reactors, operating at
90 per cent efficiency over a 50 year
lifespan, could generate 88bn in cash
at an average market price of 70 per
MWh (which was the governments
median projection for nuclear power
last year, making it the cheapest on
offer); 126bn at an average price of
100 per MWh; and 163bn at 130 per
MWh. These are very large returns on
a 14bn capital outlay, recognising the
need to count in running costs, contin-
gencies and profit.
The government rightly wants to see
new nuclear power plants by 2020. It
must now make the case and show
that it has negotiated in the national
interest and not gone nuclear at any
price.
Tony Lodge is a research fellow at the
Centre for Policy Studies (CPS). His latest
pamphlet, The Atomic Clock How the gov-
ernment is gambling with Britains energy
policy, was published this year by the CPS.
unemployment, despite last weeks
promising announcement that the
economy has returned strongly to
growth.
In response to this pernicious
problem, the City of London
Corporation has launched a new
3.28m scheme entitled Get Young
People Working The Youth Offer.
This initiative will make grants of
up to 100,000 available to all 32
London boroughs in an effort to
help 1,000 young people across the
capital into employment or
apprenticeships. Crucially, the
offer will be for work that is in
addition to publicly-funded
programmes, and will not act as a
replacement for spending cuts.
In our experience of supporting
Londons third sector through the
City of London Corporations
charity, City Bridge Trust, we have
found that the best outcomes are
achieved when boroughs and
charities work together in
partnership to develop local,
flexible strategies. That is why Get
Young People Working aims to
support grassroots initiatives
across the 32 boroughs each of
which has its own specific
challenges in this area.
Youth unemployment is one of
the biggest drivers of social
exclusion and disadvantage today.
The government and the mayor of
London are working hard to tackle
this issue but, as always, more
needs to be done to prevent
individuals falling through the
net.
That is where the City comes in.
We need to do more to support
young people across London and
demonstrate to others that we are
not an oasis of privilege, simply
concerned with looking after our
own interests. After all, the City
can only be defended as an asset
for London and the UK when it
serves as a means to an end
whether that is serving clients,
generating tax or, as in this case,
providing employment.
I know that many City firms, like
the City of London Corporation,
already do a lot of work in this
area, whether it is apprenticeships,
internships or other schemes. But
all of us have to take a serious look
at what more we can do to make a
tangible difference to local
communities. After all, this
summers Olympics may have
helped us to inspire a generation
of young people, but now is the
time to help employ one.
Mark Boleat is policy chairman at the
City of London Corporation.
CITY
MATTERS
MARK BOLEAT
The City must do more to support Londons young people into employment
MORNING UPDATE
A.M.
23
The Forum is open for you to take part. Got a sharp comment on
one of todays columns? Do you have another subject you want
to share your opinion on? We want to hear your views.
Email theforum@cityam.com or comment at cityam.com/forum
Freedom to offend
[Re: The public order act needs reform: It is
an insult to free speech, Thursday]
David Davis is right. If were going to fully
adhere to this joke of a law, therell be more
prisons in Britain than there are houses.
People need to accept that they will
sometimes be insulted. I, for one, feel its
impossible to be insulted by someone
calling me a sinner, or an idiot, or worse. Its
just his or her opinion, and doesnt reflect
anything more than that.
Har Davids
Davis is too balanced. Its more precious to
defend free speech than to protect people
from feeling insulted. Without free speech,
theres no such thing as a free society.
AnnieReynolds
Free the Beeb
[Re: As more criticism emerges, has the
BBC done enough to deal with the Jimmy
Savile crisis?, Thursday]
The BBC is in an unique and privileged
position. It lives in its own bubble, and is
not subject to the same rules that govern
all other media organisations are. The
Savile crisis, in many ways reflects this. Its
utterly wrong that we are compelled to pay
a licensed fee for a service that we have no
choice over and if we fail to do so, we can
be criminally convicted. The organisation
also inhibits the competitiveness of the
media sector in this way. The licence fee
needs to be scrapped. The quicker we
make the Beeb a commercial entity, the
better.
JoshuaFarmer
D
AVID Cameron recently said
that, in the global battle to
win jobs and contracts, he
believes in leading from the
front. Its fighting talk but,
when it comes to winning work for
our major export businesses,
Cameron and his ministerial troops
are regularly absent without leave.
Tourism, and that includes busi-
ness tourism, is a vital export busi-
ness and brought 125bn into the UK
last year. The business of bringing
people to Britain to meet, trade and
relax creates more jobs and con-
tributes more to the economy than
agriculture. So it is time tourism
gained the attention and recognition
that agriculture has had for decades.
Getting ministerial support for an
event or a proposal is like pulling
teeth. ExCeL London recently
secured a major medical conference,
worth 130m to the UK economy,
but well struggle to persuade a min-
ister to poke his head round the door
when our guests arrive.
We have a great city in London
which we sell to the world as a
vibrant cosmopolitan venue for
meeting, working and investing. But
colleagues putting together a bid for
an international conference will
have to beg for a junior ministerial
aide to type out a supportive quote or
get their boss to turn up for a five
minute appearance at a launch. In
Paris, ministers host gala receptions
at the Louvre, fast track visitors
through immigration control at the
airport and lay on dedicated trans-
port to whisk people to their venues.
Im not calling for subsidies. All we
need is recognition for our sector,
and the investment of a little more
ministerial time and attention to
unlocking the bureaucratic barriers
that stand in our way.
Over-zealous visa regulations are
blocking some of the biggest spend-
TOP TWEETS
Under a law that Silvio Berlusconi advanced,
convicts over 70 cant serve a prison
sentence in Italy. Very convenient.
@oliverirish
In Italy, cases must pass two levels of appeal
before verdicts are final. As Berlusconi is
expected to appeal, its not over yet.
@Outsstanding
Just as UK estimates tend to be revised up, if
we reported GDP like the US, last weeks UK
figure would have been 4 per cent!
@asentance
What, during the financial crisis, do MEPs
regard as the top issue in European
banking? Gender balance.
@DanHannanMEP
As the US presidential election nears, would
a Mitt Romney victory be good for markets?
YES
A Mitt Romney victory would be a positive step for markets, given
his opposition to capital gains tax increases, his support for
immediate corporation tax cuts, and his business friendly, supply-
side approach. We need to move away from a scenario where the
government picks winners and losers in the corporate world, to one
where the government acts primarily as a facilitator to businesses
and individuals. Romney is well placed to achieve this. The world
needs confidence and Romney will deliver an immediate sugar-
high to investors through a business-led approach, more clarity on
regulation and the chance to embrace the greatest opportunity that
the US has to reach economic growth levels of the past. In addition,
Romneys vision of achieving energy independence for the US by
2020 could represent a monumental shift for America.
Nancy Curtin is chief investment officer at Close Brothers Asset
Management.
Nancy Curtin
NO
Stephanie Kretz
The US presidential election results are not a game-changer for the
markets. Both candidates have different approaches to boosting
growth and both are flawed. Barack Obama believes that
government spending will encourage wealth creation, but it has
been proved that, in open economies, with excessive debt levels and
flexible exchange rates like the US today government spending
has close to no impact on GDP growth. Romney, on the other hand,
would prefer to stimulate business through lowering corporate
taxes. However, not only do corporate tax rates and real growth over
a five year cycle have no correlation, but lower corporate tax rates
have historically been associated with weaker growth. More
fundamentally, neither candidate seems to be planning to address
the US debt. As long as total debt is not reduced, all we can expect is
continued weak growth, whoever is elected.
Stephanie Kretz is an investment strategist at Lombard Odier.
RAPIDresponses
ing potential tourists, currently the
Chinese, from reaching our shores.
The French and German authorities
have spotted this and acted quickly
to change their rules. The British gov-
ernment needs to get a move on or it
risks missing a massive share of an
emerging market.
Business tourism is the gift that
keeps on giving. When business peo-
ple visit the UK to work, they are far
more likely to return with their fam-
ilies to spend more money. We dont
only need to fly our products around
the world to restore our nations bal-
ance of payments. We also need to be
a little more welcoming and hos-
pitable when the world flies in to
visit us.
Britain is good at hosting events.
The Olympics and Paralympics
showed that we can lead the world,
and my own business was proud to
be part of that success. We con-
tributed 1.8bn to the London econo-
my last year and employment for
thousands. But the government
needs to wake up and smell the com-
plementary coffee we serve while cre-
ating wealth and jobs for Britain.
David Cameron talks about flying
to Africa, Indonesia, the Gulf and
China in the battle for British jobs.
But he mustnt forget the vital work
of promoting London as a great place
to do business. It would be nice if the
government would bundle ministers
out of Whitehall, and onto the front-
line in the global battle to win jobs.
Kevin Murphy is chief executive of ExCeL
London.
KEVIN MURPHY
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UK ministers are
failing to support
business tourism
death. When the second spouse
dies, they have a tax-free amount
of 650,000 if none was used when
their partner died (or their own
325,000 plus whatever proportion
of their partners is left).
REDUCING YOUR TAX BILL
So how does someone plan to
reduce their IHT? The most
obvious answer is to give your
I
N THE event of your death, your
loved ones will not need the added
stress of dealing with your estate.
And making a will in advance is
the most effective way of making a
difficult situation easier.
Not only does a will help to efficient-
ly distribute your assets to people of
your choice, its also a tool for assign-
ing legal responsibility over your chil-
dren. Sarah Hollowell of Killik says
there is never a wrong time to write a
will and it should be considered at
any significant life change.
Almost 60 per cent of UK adults dont
have a will, and one in three die with-
out having written one. This is not a
good position to be left in. Your estate
will be subject to rules of intestacy,
which follow set rules to dispose of
your assets, rather than following your
own preferences or priorities.
HAVING THE WILL
The first step is deciding what you are
going to pass on, and to whom. Wills
are made up of a combination of cash,
bequests, and remaining possessions.
Your will should also outline what will
happen with any residual items that
arent specifically cited.
Some things are not covered: death
in service payments are one exclusion,
as are foreign property holdings,
which are subject to local rules. The
case of the late businessman Bernard
Matthews, whose mistress is in dispute
with his children over the ownership
of a French chateau, highlights the
importance of professional advice
with regards to foreign holdings.
Currently, will writing is unregulat-
ed, but that may change in a few years.
A key consideration is whether you
have a professional write your will, or
do it yourself. Using online will writ-
ing tools, for example, can be cheaper.
John Bunker of Thomas Eggar advis-
es the use of professionals: There can
be hidden traps in a will, including
detailed points about wording, and
things that need to be included. So
many wills made with the best of
intentions leave cause for dispute or
misunderstanding.
Bespoke wills also allow better inher-
itance tax planning, and can cover
nuanced factors like giving consent for
family to continue living in your prop-
erty. They ensure that subtle issues are
properly planned for, which is instru-
A will is an important way
to protect your loved ones
W
EALTH taxes have
remained high on the
political agenda in
recent months. After the
latest party conferences,
it seems increasingly unlikely that
we will see any new measures
introduced in the immediate
future. So, we are left with the UKs
only existing form of wealth tax:
inheritance tax (IHT). Rather than
being an annual tax on all wealth,
IHT is a once in a lifetime levy on
what you leave behind after death.
THE BASIC RULES
Upon death, all of your assets less
liabilities (including any mortgage
that you may have), plus anything
that you have given away in the last
seven years tapered slightly for
gifts made more than five years ago
are added up. Anything you leave
to your spouse or civil partner is
exempt, and there are also various
other exemptions such as legacies
to charities. No tax is payable on
the first 325,000 of what is left,
but there is a 40 per cent tax on
any assets above that amount.
For many couples with assets of
no more than 1m, for example,
the first priority will be to make
sure that the surviving spouse is
adequately provided for. The
natural instinct is to pass
everything on to the surviving
spouse (exempt from tax) without
worrying about the IHT payable on
their death. You might think that
this course of action would lose
out on the 325,000 free of tax on
the first death, but there is a
special rule that allows you to pass
on the tax-free amount to your
partner if it is not used on the first
wealth away to your heirs and then
hope that you survive for seven
years so that there is no liability.
The drawback, of course, is that it
may not leave you with enough
money to survive on for the rest of
your life. If you run out of money,
you could end up relying on your
heirs (normally your children) to
look after you out of what you gave
to them earlier. But many older
24
cityam.com
PERSONAL FINANCE MANAGEMENT WEALTH
mental in avoiding disputes between
beneficiaries after you have passed on.
ITS NOT ALL ABOUT THE MONEY
A will isnt just about wealth; it is also
about assigning legal responsibility. If
you have children under the age of 18,
your will should state who would be
their legal guardian (if both parents
were to die). If a guardian has not been
nominated in a will, a court will make
that decision.
This is an important point also for
couples with step-children. It is also
fair to make provisions for the
guardian looking after a child can be
costly, and you dont want to cause
financial inconvenience.
Choosing an executor, who will be
responsible for carrying out the
instructions of your will, is another
key consideration. While it may be
tempting to list your spouse, in the
worst case scenario you may both die
together, so it is a good idea to list
more than one person. Being an execu-
tor is a position of huge responsibility;
friends or family are options but, for
more complex estates, it is advisable to
have an impartial executor. It may be a
good idea to appoint a professional to
work alongside appointed individuals
like a trust company.
Naturally, a will must be signed, and
independently witnessed. Upon death,
an original signed copy must be pre-
sented. If it isnt, the will may not be
legally enforceable. Therefore, it is
important to also ensure that the will
is stored in a safe place and executors
should be told where that is.
Keeping your will up to date is impor-
tant, too. Hollowell says that an out of
date will is just as bad as no will at all.
Marriage is the only event that revokes
a will. Divorce doesnt, so make sure
you review it every few years, and
always with significant life changes,
like a birth, death or marriage.
THERE IS A WAY
Solicitors supporting Will Aid, a chari-
ty promoting will writing, are waiving
their fees in November. Last year, they
encouraged 27,000 to make a will.
Spokesperson Shirley Marsland says
that people are not making wills
because they dont believe they need
to, and their lack of knowledge can
cost families a small fortune.
Hopefully, November is the month
that the unprepared 60 per cent of
Brits have the will to find their way to
properly planning for the worst.
What you need to know about inheritance tax planning
people do not find that very
attractive, and there is no point in
giving away your main residence as
a gift assuming you still live there
as it will not be helpful for IHT if
you continue to make use of it.
THE REALITY
In practice, people with more
wealth tend to pass on what they
feel that they will not need in their
old age. The cost of IHT falls
proportionately greater on
individuals and couples with
wealth up to 1m or so, and that is
the source of the main tax take for
the government.
Many people, other than the
very rich, end up doing little tax
planning for IHT. After all, by the
time it comes to be paid, they will
not be there to worry about it.
Their heirs will still be receiving a
gift from the previous generation
even if they themselves have to pay
taxes on it.
Patrick Stevens is a tax partner at
Ernst & Young
The majority of adults in the UK have not planned how their assets will be dispersed, writes Yogesh Chandarana
PATRICK STEVENS
G
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The generation game
G
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T
HE chairman of the board
looked at me
condescendingly and said,
Dont let yourself get too
excited about that, Richard.
We will just have two wait and see.
These things are never certain. I
was slightly shocked at his response
to my question about a potential
large order, particularly since it was
included in our sales forecast.
The rest of the board lowered
their eyes, seemingly slightly
embarrassed. I had been a
supporter and shareholder of the
business for a long time, and
recently it had become apparent
that it were not performing well. So
I had joined the board and this was
my first meeting. It was
immediately apparent that one
problem was that the chairman
considered himself the intelligent
dictator and stifled any discussion
or debate about important issues.
He would have separate meetings
with the chief executive and
basically impose his own beliefs and
strategy. Consequently the rest of
the board, even though quite
talented, had very little input and
were a wasted resource. At that
first meeting, I felt so
uncomfortable that I decided not
to struggle with the chairman, but
to resign and work behind the
scenes. Later, with the support of
other shareholders, he was
removed, or should I say, he
resigned, allowing the board to be
much more effective. Funnily
enough, I bumped into him
recently at a corporate event
and, while he was polite to
me, he had an unusual way of
expressing his feelings: he
assaulted me with a
handshake! Luring me in
with fairly soft initial
contact he suddenly
switched to some vice-
like mode and by the
time my hand
escaped my fingers
were throbbing like
they do on the
Flintstones. And all
the while he had a smile on
his face. I was too
surprised to say anything, so no one
else was aware of our little episode.
Later, on parting, I had to shake
hands with him again. This time, I
was ready for him and pulled free
just in time, which is a curious
art I never thought I would
need to learn. At least, not
with my hands.
Unfortunately, the role of
chairman is often
underestimated for small
companies. Quite often,
particularly with those
listed on the junior
stock market, Aim,
the City is quite content
to have the token grey-
haired ex-army officer
with a little bit of
accounting experience.
They feel that such a
person is very good at
maintaining good corporate
behaviour. Myself, I find such
people can be way out of their
depth and obsessed with minutia. I
feel far more comfortable having
someone with genuine industry or
business experience. And Im also a
big fan of the chair having some
skin in the game. I get nervous
when any key executive is reluctant
to take at least some of their pay or
bonus in company shares or
options. There are far too many
professional part-time directors,
earning a tidy living by just turning
up at meetings. To me, ineffective
boards are more of a worry than
the odd crushing handshake.
Richard Farleigh has operated as a
business angel for many years, backing
more early-stage companies than anyone
else in the UK.
www.farleigh.com
Tom Welsh examines what the open-source environment has to offer for entrepreneurs
G
OOGLE Campus is a seven
floor work and event space
in the Citys eastern fringe
on Bonhill Street, EC2,
designed to encourage the
next generation of entrepreneurs.
Its an open-source building, with
floors run by individual partners
each with a different take on what a
start-up needs to thrive.
Anyone can join the Campus com-
munity by signing up on its website
(www.campuslondon.com). This
offers basic access to workspace in
the basement cafe. Technology-
focused start-ups can also access the
Campus by signing up through
TechHub (www.techhub.com).
Another alternative is Seedcamp (on
the fourth floor). Its a 13 week inten-
sive accelerator programme, with
office space, seed capital, and offer of
assistance from experienced entre-
preneurs and investors. For more
information visit seedcamp.com
ENTREPRENEURS
25
Negotiating your
way to success
INNOVATION
DIARY
TOM WELSH
cityam.com
A look inside Googles Tech
City Campus for start-ups
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ERE a nation of innovators
and inventors, were told. The
march of the makers, the
white heat of technological
innovation, the slogans roll off
the tongues off our politicians in a constant
barrage of optimism close to or devoid of
reality, depending on your view.
But were not a nation of negotiators. Or
so says recent research by YouGov and the
Centre for Economics and Business
Research (CEBR), commissioned by
legendary corporate problem-solver Clive
Rich. The CEBR analysed responses to a
survey by 1,000 senior UK managers, and
concluded that UK firms are losing up to
17bn a year through antiquated
negotiation skills.
But what does this mean? Negotiation is
clearly critical to anyone in business from
the freshest young start-up entrepreneur to
the crustiest corporate grandee. Effective
negotiation with suppliers or clients can
broaden profit margins, break open new
markets, or secure new investment in your
firm. Poor negotiation could mean that,
however good your product or service,
your best efforts are left languishing on the
shelf.
Theres no need to be too concerned,
however. I recently had dinner with a
hugely successful young entrepreneur,
unlikely to win any prizes at charm school.
But he had ideas, financial nous, and
ambition. Crucially, he had assembled the
perfect combination of personalities to
successfully build his business from bottom
up.
As Rich concludes in the preface to his
research, collaboration and partnerships
are vital to business success. Success in a
capitalist market economy of course
requires a degree of macho
competitiveness a take what you need
attitude. But as Richs research shows,
equally important is nimbleness, subtlety,
and a willingness to adapt whether at the
negotiating table, or in choosing the right
spectrum of personalities for your team.
Dont worry if you cant negotiate. Just
make sure you know someone who can.
Tom Welsh is business features editor at
City A.M.
The importance of learning to shake the hand that bites you
of a SERIAL
ENTREPRENEUR
RICHARD FARLEIGH
CONFESSIONS
Reception
The reception area
is decorated with
multicoloured
Duplo bricks. The
level also offers
storage space in a
series of
reclaimed fruit
crates.
Cafe
Run by Central
Working, the cafe
is a members-
based co-working
club. It offers
entrepreneurs and
mentors free
workspace and
fast WiFi.
Events
The Campus
partners offer
regular events for
entrepreneurs and
mentors
including
networking and
the occasional
hackathon.
LIFE&STYLE
26
cityam.com
TRAVEL
R
EMEMBER that week back in
August, the one just after the
Olympics when it wasnt dark
by 5pm? The Eurozone crisis
had gone on its summer holidays
and the whole of London starry
eyed with Team GBs success was
convinced that being an Olympian
was the best job ever.
I do. Partly because I suddenly had
to start watching rubbish TV again,
but mainly because it was the same
week I signed up to my very own
Olympic legacy six days learning to
kitesurf in Egypt.
Kitesurfing is one of just two new
sports that will make its Olympic
debut at Rio 2016 (the other being
Rugby Sevens, which doesnt quite
have the same appeal) controversial-
ly replacing windsurfing, which has
been part of the Games roster since
1984.
An official description on the
International Olympic Committees
website describes kitesurfing as a
combination of kite flying, windsurf-
ing, wakeboarding and surfing.
Having tried just one of the above
flying power kites on solid, mostly
dry ground I felt less than pre-
pared for my foray into watersports,
particularly when during a discus-
sion with colleagues just days before
leaving, I realised that I couldnt do a
single push-up not ideal for a sport
that looked a lot like it relied on
upper- body strength.
Still, board shorts packed and fac-
tor 50 at the ready, I set off for El
Gouna, a purpose-built resort in the
desert just north of popular flight
hub Hurghada, on the west coast of
the Red Sea.
Built from scratch by property bil-
lionaire Samih Sawiris firm
Orascom, El Gouna is a somewhat
bizarre concept a gated communi-
ty of hotels and villas so completely
cut off from the real world that it
could be just about anywhere.
Luckily, it also happens to sit on a
stretch of coastline so perfect for
kitesurfing that along just 10km of
beachfront youll find five separate
schools, catering to everyone from
absolute beginners to the fanatics
that come back two or three times a
year to hone their skills.
The wind here is guaranteed to be
decent for most of the year, and the
temperature rarely drops below 25
degrees, but the major selling point
is the huge, knee-deep lagoon that
runs from the beach to several hun-
dred metres offshore before reach-
ing the heart of the Red Sea. The
warm water makes hours whiled
away paddling in the shallows easy,
and instead of the wet suit that
would be required anywhere in
Europe, the kitesurfers here wear
nothing more than a t-shirt and
shorts despite spending all day on
the water.
Im booked into the RedSeaZone
school, a simple set-up on the bril-
liantly named Mangroovy beach dot-
El Gouna from Cairo as a beach boy
setting up the kites and looking
after the centre before taking to
the water himself and revealing an
unnatural talent not just for staying
upright while rocketing across the
water strapped to an 11-metre inflat-
able kite, but also for teaching other
people how to do the same.
Seven years later he is one of the
best kitesurfers in the country, an
accolade that will almost certainly
earn him a place in the team that
Egypt takes to Rio in just under four
years.
Impressed by the level of expertise
Im being treated to, our three-
strong group of absolute beginners
start slow flying smaller kites on
dry land to get a feel for the wind
strength and direction, as well as
learning how to control them with
one hand so that once were actually
in the water, well be able to concen-
trate on the 101 other things its nec-
essary to coordinate to stand a
chance of success.
As a historically impatient student,
naturally inclined to give up on
things Im not immediately good at,
Im surprised by how much I enjoy
ted with sun loungers, parasols and
a beach bar. Despite the low-key
appearance, its obvious this is a seri-
ous operation, with an equipment
room consisting of hundreds of har-
nesses, helmets, boards and the stars
of the show logo-emblazoned kites
ranging from a manageable-looking
nine metres, to a frankly terrifying
13 metres-plus.
This sort of kit doesnt come cheap
a decent kite can cost more than
1,000 before you even start on all
the extras but the focus on safety
and insistence on getting me trussed
up like the clumsy kid on a school
trip is reassuring when I look out to
sea and see the speeds (not to men-
tion heights) that some of the pros
are reaching.
Expecting an over-enthusiastic
Antipodean instructor whod wound
up in El Gouna on an extended gap
year, I was pleasantly surprised to
meet my 100 per cent Egyptian
coach Nemo, a softly spoken dream
of a man who earned his nickname,
he told me shyly, through being
small and good in the water.
Like many of the instructors at
RedSeaZone, Nemo came to work in
Work up a sweat
and preprare for a
challenge in this
Egyptian paradise
Kitesurfing is one of two new sports joining the
Olympics line-up. Elizabeth Fournier tries it out.
Theres something
to be said for being
dragged out of your
comfort zone to
completely clear out
the cobwebs
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the relaxed pace of the tuition. Each
part of the lesson is explained in full,
and Im given plenty of time to prac-
tice and watch others, so that once I
move onto the next stage, it all make
sense.
Thats not to say its easy. Far from
it this is probably the single hard-
est thing Ive ever tried to do, requir-
ing total concentration and the
coordination of body parts far more
used to sitting in front of a computer
for hours on end.
On the second day I take to the
water armed with a new, part-inflat-
able kite (crucial for those inevitable
beginner crashes) to master the art
of body-dragging catching the
wind in either direction and using it
to swim across the lagoon and back.
After a morning in the water trying
desperately to replicate Nemos
effortless command of the so-called
wind window, I realise Ive barely
had a single thought about anything
else for the past three hours.
My arms may ache but mentally
this feels like total relaxation; even
lying next to a pool with nothing to
do, my mind will often wander back
to work, but theres something to be
said for being dragged out of your
comfort zone to completely clear out
the cobwebs.
Each day after my lesson we
descend, ravenous, on one of the
resorts many restaurants a decent
enough selection of eateries that, as I
later find out, may all be individual-
ly branded but are ultimately owned
and staffed by the Orascom Group.
The developers dominance of the
resort gives it a slightly Truman
Show-esque feel (that Jim Carrey film
where he discovers his whole life is a
TV programme, filmed in an artifi-
cial dome world) albeit one popu-
lated with white sands, palm trees
and a unfailingly welcoming bunch
of people.
Sitting in one of the open-air
restaurants on the marina, its easy
to forget youre in a country that,
barely 20 months ago, was in the
grip of the Arab Spring, the wave of
popular uprising that brought to an
end the 30-year rule of Egypts dicta-
torial president Hosni Mubarak.
During the unrest in early 2011 El
Gounas tourist industry its only
industry, really was shut down for
several weeks when the govern-
ments of its core clientele of French,
German, Russian and British tourists
advised against travel to the region.
Our own foreign office was actually
the first to lift restrictions, sending
British sunseekers back to the resorts
and providing some much needed
business for the locals, who claim
there was nowhere safer to be during
the protests. Even Sawiris, who had
his pick of a property portfolio span-
ning London and Switzerland, spent
that turbulent February in his El
Gouna villa.
Fast-forward to September 2012
and the same mix of nationalities
seem to have returned to the Red Sea
undeterred, and no doubt encour-
aged by the countrys new govern-
ment and its post-Mubarak charm
offensive to convince the tourism
industry that Egypt is open for busi-
ness. My hotel, part of the Swiss
Movenpick chain, is buzzing with a
mix of families and couples even
though school holiday season is offi-
cially over. But despite there appar-
ently being more than 700 guests
here, the hotels huge expanse of
land, numerous restaurants and four
swimming pools means it never feels
grabbing their boards they look ulti-
mately cool, and clearly know it
they time jumps perfectly to please
our cameras and whiz past just close
enough to send an arch of spray over
our heads.
Later that evening the instructors
invite me to spend my last night in
El Gouna at the weekly kitesurfers
beach party at a neighbouring centre
along the beach. With no noise pol-
lution to worry about and the heat
of the day lasting well into the early
hours, our group of London-weary
journalists spends the night dancing
non-stop among the strobe lights,
surrounded by fresh-faced students
and bleached-haired adventure
sports addicts.
I have to admit, I came to Egypt
slightly dreading the surfer-dude-
gap-year vibe that I imagined
kitesurfing was all about.
But here, under a ceiling made of
stars and with nothing to worry about
other than whether Ill wake up in
time for my flight the next morning, it
all makes a lot more sense.
I might not make it to Rio in 2016,
but as Olympic legacies go this one
will take some beating.
busy.
On the last morning, I arrive back
in the water and am handed the
final piece of the puzzle thats been
eluding me so far the board.
Carrying a piece of wood about the
size and shape of a snowboard with
foot straps on one side and tiny fins
on the other, I wade out to sea for a
final attempt at breaking the back of
the sport.
Though the pictures may say other-
wise, over the next few hours I man-
age what feels like significant
periods of time out of the water,
though in reality I imagine they
were barely more than two to three-
second bursts of motion. It feels bril-
liant and I start to understand why
so many of the people I meet here
are repeat customers, hooked on the
adrenalin that a few moments com-
manding both the wind and the
water inspires.
Flushed with success the amateurs
among us trudge back to the shore,
while Nemo and his fellow instruc-
tors stay in the water to give us a
demonstration of their skills.
Zipping across the water and leap-
ing into the air while twisting and
NEED TO KNOW
FLY
With Egyptair via Cairo to Hurghada
www.egyptair.com
STAY
Mvenpick Resort and Spa El Gouna.
Accommodation prices range between
90 to 160 per night for a double room
including breakfast buffet www.moevenpick-
hotels.com/el-gouna
Learn to kitesurf at RedSeaZone
Watersports Academy, Northern
Mangroovy Beach, El Gouna, International
Kiteboarding Organisation (IKO) levels
1+2. Price including equipment and 11
hours of tuition for a group of two to four
people costs approximately 280 per
person www.redseazone.com
Far left and above: Some
of the various kitesurfing
moves demonstrated by
the pros. Left: Elizabeth
Fournier in action.
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TV & GAMES
cityam.com
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BBC1
SKY SPORTS 1
10amLive Masters Tennis
7.30pmLive Football League.
Sheffield United v Portsmouth
(Kick-off 7.45pm). 10pm
Netbusters 10.30pmSPL Round-
Up 11pmSoccer AM: The Best
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Unlimited 3amFIFA Futbol
Mundial 3.30amWatersports
World 4.30amMax Power
5.30am-6amFIFA Futbol
Mundial
SKY SPORTS 2
7pmNetbusters 7.30pmLive
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NASCAR 12amTriathlon
12.30amThinking Tackle
1.30am-2.30amSoccer AM: The
Best Bits
SKY SPORTS 3
7pmWWE: Smackdown 9pm
WWE Wrestling 12am-3.15am
Live WWE: Late Night Raw
BRITISH EUROSPORT
6.15pmAlpine Skiing 7.15pm
WTA Tennis 8.45pmTwenty20
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10.45pmMotoGP 12.15am-1am
Eurogoals
ESPN
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11pmUFC: The Ultimate Fighter
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5am-6amPremiership Rugby
Union
SKY LIVING
7pmCriminal Minds 8pm
Nothing to Declare UK 8.30pm
Show Me Your Wardrobe 9pm
Americas Next Top Model
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12amCaribbean Cops 1am
Smash 1.50am Supernatural
2.40amCriminal Minds 3.30am
Medium4.20amBones
5.10am-6amPassport Patrol
BBC THREE
7pmDont Tell the Bride 8pm
Junior Doctors: Your Life in Their
Hands 9pmGay to Straight:
Stacey Dooley in the USA 10pm
Russell Howards Good News
10.30pmEastEnders 11pm
Family Guy 11.45pmAmerican
Dad! 12.30amGay to Straight:
Stacey Dooley in the USA 1.30am
Sun, Sex and Suspicious Parents
2.30amRussell Howards Good
News 3am-4amUnsafe Sex in
the City
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmNew Girl
8.30pmSuburgatory 9pm
Derren Brown: Apocalypse
10pmMade in Chelsea 11.05pm
The Work Experience 11.40pm
Fresh Meat 12.35amThe Big
Bang Theory 1.35amHow I Met
Your Mother 2amScrubs 2.25am
Fresh Meat 3.10am90210
3.50amOne Tree Hill
4.35am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 9.30pmCajun Pawn Stars
10pmAmerican Pickers 11pm
Storage Wars 11.30pmPawn
Stars 12.30amCajun Pawn Stars
1amAmerican Pickers 3amAx
Men 4amSwamp People 5am
Pawn Stars 5.30am-6am
American Restoration
DISCOVERY
7pmBattle Castle with Dan
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3.50amAmerican Guns 4.40am
Discovery Atlas: Egypt Revealed
5.30am-6amMeerkat Manor
DISCOVERY HOME &
HEALTH
7pmDr Oz 8pmSecretly
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ER 10pmHospital Sydney 11pm
Im Pregnant and Maybe Having a
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Dwarf 3amSecretly Pregnant
4amA Baby Story 5am-6am
Birth Days
SKY1
8pmArrow9pmA League of
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Thrones 11.15pmFringe 12.15am
Street Crime UK 1.15amRoad
Wars 3.10amDog the Bounty
Hunter 4.10amCrash Test
Dummies 5.05am-6amDont
Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
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6.30pmBBC London News
7pmThe One Show
7.30pmInside Out: BBC News
8pmEastEnders
8.30pmThe Hospital That
Stopped Caring Panorama
9pmCHOICE New Tricks
10pmBBC News 10.25pm
Regional News 10.35pmHave I Got
a Bit More News for You 11.20pm
Our War 12.20amWeatherview
12.25amSign Zone: Wartime Farm
1.25amSign Zone: Lorraines Fast,
Fresh and Easy Food 1.55amSign
Zone: Neighbourhood Watched
2.40amSign Zone: How We Won
the War 3.10am-6amBBC News
6pmEggheads: Quiz show.
6.30pmStrictly Come Dancing
It Takes Two
7pmGreat British Food Revival
8pmUniversity Challenge
8.30pmNigellissima
9pmCHOICE 50 Years of
Bond Cars: A Top Gear Special
10pmNever Mind the
Buzzcocks: With guest host
Ne-Yo.
10.30pmNewsnight: Weather
11.20pmJames Bond: A Bafta
Tribute
12.45amBBC News
3.05amClose 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmLittle England
8.30pmCoronation Street
9pmMonroe
10pmITV News at Ten
10.30pmLondon News
10.35pmThe Agenda
11.05pmFILMThe Skeleton
Key. 2005.
12.50am Jackpot247; ITV
News Headlines 3amChampions
League Weekly 3.25amITV
Nightscreen 4.35am-5.30amThe
Jeremy Kyle Show
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmGetting Rich on the NHS:
Channel 4 Dispatches
8.30pmFood Unwrapped
9pm999: Whats Your
Emergency?
10pm8 Out of 10 Cats
10.50pmAlan Carr: Chatty Man
11.55pmRandom Acts 12am
Shameless 1amThe Good Wife
1.40amThe Good Wife 2.25am
90210 3.05am90210 3.50am
Supernanny US 4.30am
Supernanny US 5.10am-6.05am
Deal or No Deal
6pmCHOICE Home and Away
6.30pm5 News at 6.30
7pmCowboy Builders: 5 News
Update
8pmClassic Car Rescue: 5
News at 9
9pmFILMBad Boys: Action
thriller, starring Will Smith and
Martin Lawrence. 1995.
11.20pmFILMDeath Race:
Sci-fi thriller, starring Jason
Statham. 2008.
1.20amSuperCasino 4amGreat
Artists 4.25amHouse Doctor
4.50am Michaelas Wild Challenge
5.10amWildlife SOS 5.35am-6am
Wildlife SOS
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5 6
7
8 9 10
11 12
13 14 15
16 17
18 19 20
21
22 23 24 25
26
27 28
17 10
45
17 35
4 10
23 13
45
7 8
29 12
16 14
45
13 33
5
17
30
37
11
24
42
8
22
11
10
6
15
13
29
16
12
22
28
22
16
ACROSS
1 Obvious and dull (5)
3 Aromatic herb (5)
7 Mentally or physically
inrm with age (4)
8 Locations (5)
10 Lowest point (5)
11 Hard-shelled fruit
of a tree (3)
13 Female sibling (6)
15 Charges (4)
16 Small amount (3)
18 Cooking fat (4)
19 Forbid the public
distribution of (6)
21 Golf peg (3)
22 Each (5)
25 Hazardous (5)
26 Call used three times
by a Town Crier (4)
27 Tendon connecting
muscle to bone (5)
28 Position of
professor (5)
DOWN
1 Books that retail
in very large
numbers (11)
2 Broker (5)
3 Forbid (3)
4 Farmhouse cooker (3)
5 Sorrow (7)
6 Supplication
that begins Our
Father (5,6)
9 Edible fat (4)
12 Extended area
of land (5)
14 Physician
who performs
operations (7)
17 Antlered animal (4)
20 Characteristic sound
made by a horse (5)
23 The Catcher in the
___, J D Salinger
novel (3)
24 Coniferous tree (3)
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B A S I S E M E R Y
O H T I E
B E A L L T O L D
C O L L I E R I
A T R A C E M E
T E E M K D A F T
F R A C A S R H
F N G H E T T O
F I A N C E E I R
G E E N N
M Y R R H P A I N S
8 7 9 5 4 6 8 9
4 2 6 3 1 3 7 8
8 1 2 1 3 4
5 3 7 4 2 1 6 7
9 2 2 1 3 7 4 6
9 1 7 6 9 5
4 6 3 8 1 9 2 1
3 1 6 5 8 3 9 7
5 8 7 9 5 1
1 4 6 1 4 2 3 8
2 5 9 6 7 5 8 9
4
4
4
4
4
4
4
4
4
The nine-letter word was
THREADING
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
NEWTRICKS
BBC1, 9.00PM
Amanda Redman heads the cast as an
ambitious police superintendent who
heads a squad of retired officers
dedicated to tackling unsolved cases.
50 YEARS OF BOND CARS: A TOP
GEAR SPECIAL BBC2, 9.00PM
Richard Hammond celebrates the
vehicles featured in the Bond films,
and attempts to turn a Lotus Esprit
into a fully working submarine car.
HOME AND AWAY
CHANNEL 5, 6.00PM
Casey resigns himself to a life behind
bars and sets about tying up loose
ends, while Leah encourages Natalie to
focus on her future with Brax.
TVPICK
IN BRIEF
Patriots beat Rams at Wembley
nAMERICAN FOOTBALL: The New
England Patriots thrashed St Louis
Rams 45-7 at Wembley yesterday in
the sixth year that London has hosted
an NFL fixture.
England call up forward cover
nRUGBY UNION: Harlequins lock
George Robson and London Irish
hooker David Paice were last night
drafted into Englands squad for next
months internationals. The pair are
injury cover for Northamptons
Courtney Lawes and Dylan Hartley,
who are rated doubtful after suffering
injuries in Saturdays Premiership
defeat to Saracens.
Serena caps big year in Istanbul
n TENNIS: Wimbledon champion
Serena Williams beat Maria Sharapova
6-4, 6-3 to win the WTA
Championships in Istanbul yesterday
and cap a vintage year. The
Americans third success at the
lucrative season-ending tournament
followed her 2012 titles at SW19, the
US Open and a gold medal at the
London 2012 Olympics.
Lumb leads Sydney to victory
n CRICKET: Englands Michael Lumb
helped Sydney Sixers to a Champions
League Twenty20 final victory by 10
wickets over Wanderers in
Johannesburg. They are to receive
1.55m for their victory.
Lorenzo wins second world title
n MOTO GP: Jorge Lorenzo secured
his second MotoGP world
championship after finishing second in
the Australian GP. The Australian
Casey Stoney won there for the sixth
year in a row, while Dani Pedrosa, who
was also in contention for the title,
crashed in the second lap.
F1 RESULTS
Indian Grand Prix
1. Sebastian Vettel (Red Bull) 1:31:10
2. Fernando Alonso (Ferrari) 1:31:21
3. Mark Webber (Red Bull) 1:31:24
4. Lewis Hamilton (McLaren) 1:31:25
Drivers Championship
1. Sebastian Vettel (Red Bull) 240 pts
2. Fernando Alonso (Ferrari) 227
3. Kimi Raikkonen (Lotus) 173
4. Mark Webber (Red Bull) 167
5. Lewis Hamilton (McLaren) 165
HARLEQUINS captain Chris Robshaw
admitted his side rode their luck
before returning to the top of the
Aviva Premiership table in a dramatic
31-28 win at London Irish yesterday.
Trailing by two points with no
time remaining, centre Tom Casson
looked to have knocked on over the
line but on referral to the television
match official the try was given the
final action of a match either side
could have won.
Guy Armitage and England scrum-
half Danny Care exchanged tries in
the first-half, before Tom Williams
moved Quins back out in front after
the break. But Irish regained the lead
through the boot of the in-form Ian
Humphreys and it looked like they
had done enough until Cassons late
score, leaving Robshaw relieved to
have ended a run of two successive
Premiership defeats.
We got a bit of luck there towards
the end but credit to the boys, they
believed and they kept going, said
Robshaw, who gave England coach
Stuart Lancaster a scare by suffering
an eye injury.
Credit where its due to Irish as
well, they put us under a lot of pres-
sure and to come away with a win
when theyve scored over 40 points
in their last three games is massive
for us. Its a big way for us to bounce
back. We had a bad loss to Exeter and
Late try downs
Irish and sends
Quins back top
we also lost to Saracens so we wanted
to come here and right a couple
of things.
In Sundays other London derby,
wing duo Christian Wade and Tom
Varndell scored two tries apiece as
London Wasps overcame a stubborn
London Welsh side 29-19 at Adams
Park. Touchdowns from Phil
MacKenzie and Franck Montanella
kept Welsh in it but it wasnt enough
for Lyn Joness men.
On Saturday, Saracens momentari-
ly went top of the league with a 16-6
victory away at Northampton Saints
Alex Goodes first-half try proving to
be the difference, while Owen Farrell
added 11 points with the boot. After a
slow start Saracens are now in full
swing, the victory their fifth on the
bounce, leaving defence coach Paul
Gustard delighted to have restricted
Saints to just two penalties.
We are ecstatic, particularly deny-
ing them a bonus point in our victo-
ry, he said. We pride ourselves on
our defence. Its an easy way to reflect
the unity of the squad, the together-
ness. When things get tough we can
rely on the fact weve got a friend to
our left, a friend to our right, to get
that turnover when we need it.
Aviva is proud to be title sponsor of
Aviva Premiership Rugby one of the
worlds leading rugby union competitions.
Each season will feature 135 games, which
will be watched by 1.7m people live at the
grounds. Visit www.premiershiprugby.com
Defiant Alonso insists race is still on despite Vettel win
Harlequins centre Tom Casson (right) scored his sides last-gasp winning try yesterday
BY NATE SAUNDERS
FERRARIS Fernando Alonso insists
he can still win the Formula One
drivers championship, despite
watching Red Bulls Sebastian Vettel
take the chequered flag for the
fourth straight race yesterday.
Vettel, aiming for a third
successive title, is now 13 points
clear at the top of the rankings after
winning the Indian Grand Prix in
one hour, 31 minutes and 10
seconds a comfortable 9.4 seconds
ahead of Alonso. Vettels team-mate
Mark Webber took third. Its not
easy to fight with Red Bull but we
will never give up, Alonso said,
although he conceded that Red Bull
were fantastic over the weekend.
Nothing changed in one race. There
are 75 points [still to go] and we are
13 behind and we know we need to
improve. There are three races
remaining and the championship is
the main target. For that we need to
make a step forward as at the
moment we are not able to win. [But]
I think [the final race in] Brazil will
be quite good and hopefully I am
going to be happy.
With Red Bull significantly
improving their car for the second
half of the season, Vettel has led
three consecutive races from the
start, maintaining the No1 position
for over 200 straight laps.
Yet Alonso maintains that his rival
could still suffer faults during the
crucial final three races.
As we saw with Webbers KERS
problem, it can happen to Seb or it
can happen to us, so I am optimistic,
the Spaniard added. Webber was
overtaken by Alonso on lap 48 with
the Australian unable to use his
KERS a system that injects extra
acceleration power into the car.
Britains Lewis Hamilton then
targeted Webber, and managed to
close a four-second gap down to one
second, while notching up some of
the fastest laps of the race. Yet the
McLaren driver, who will move to
Mercedes next season, was unable to
make a pass and finished fourth.
Hamilton started third on the grid
alongside compatriot and team-mate
Jenson Button, yet both were
overtaken by an aggressive Alonso in
the opening five laps. After losing
position to Alonso, Button was
overtaken by Hamilton, and stayed in
fifth place to the end.
BY JULIAN HARRIS
SPORT
29
cityam.com
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CHELSEA last night launched a com-
plaint against the referee Mark
Clattenburg after alleging that he
had used inappropriate language
on an explosive evening in which he
had already sent off two of the
league leaders players and ruled
that Javier Hernandezs offside
winning goal for Manchester United
should stand.
Manager Roberto Di Matteo had
already condemned the referees
obviously bad performance before
the west London club filed their com-
plaint, though there was some
uncharacteristic sympathy from
United counterpart Sir Alex
Ferguson over the difficult decisions
he believed the official had to face.
We have lodged a complaint to
the Premier League match delegate
with regards to inappropriate lan-
guage used by the referee and direct-
ed at two of our players in two
separate incidents, said a Chelsea
spokesman, who did not provide any
specific details. The match delegate
will pass the complaint to the
Football Association. We will make
no further comment at this time.
The defeat was the first of
Chelseas Premier League season but
the second in a week in which their
hopes in the Champions League also
came under threat. On Tuesday
Chelsea lamely lost 2-1 away to
Shakhtar Donetsk of Ukraine and in
initially recovering from two goals
down to United they had impressed.
It was at that point that the equalis-
ing goals of Juan Mata and Ramires
after David Luizs own goal and
Robin van Persies strike appeared to
give the home side the matchs
momentum but for Di Matteo the
poor decision to dismiss Fernando
Torres after Branislav Ivanovic
had already been sent off and then
to rule for Hernandezs deciding goal
were the ones that ruined the day.
Its quite obvious that the second
yellow for Fernando Torres wasnt
one, it was a foul for us, he should
have booked [Jonny] Evans and the
decisive goal was offside, Di Matteo
said. Its a shame the games decid-
ed in that manner by the officials.
Whatever [Ferguson] says, it was a
foul in our favour and Fernando was
through and was kicked on the shin
and went down. Its a booking for the
other player, not ours.
Were massively disappointed
that these key decisions were wrong
it always seems to be in favour of the
opposition and its a massive disad-
vantage for us. At 2-2 we looked like
the team that were probably going to
win the game so its a shame. It was a
good game of football with two good
teams and the officials ruined it.
Key decisions have to be right and
you dont want the referees to be a
big influence. Let the teams play a
good game of football against each
other. Thats what everyone wants.
Well, did he intend to dive?
Ferguson had asked of Torress dis-
missal. Jonny may have just caught
him a little bit but you can either
carry on running, which he couldve
done. But he chose to go down. He
couldve carried on and scored.
Thats what I cant understand.
A fourth-minute Van Persie shot
bounced off of Luizs back and rolled
Two reds, anoffside and
language: Chelsea in ref
in after hitting the post before the
Dutchman powerfully struck again
just 12 minutes later.
Matas masterful curling free-kick
on the brink of half-time provided the
home side with genuine hope before
he was again involved in a move that
finished with Ramiress convincing
53rd-minute header. Ivanovics and
Torress dismissals respectively fol-
lowed in the 63rd and 69th minutes
for a foul on Ashley Young and then a
second yellow for what was judged to
be a dive before Hernandez poached
the deciding goal from an offside
position 15 minutes from time.
Suarez denied late winner after
Moyes-baiting goal celebration
LIVERPOOL manager Brendan
Rodgers cursed a disallowed late
goal from controversial striker Luis
Suarez after his team threw away a
two-goal lead in a pulsating
Merseyside Premier League derby.
Suarez fired in via Leighton
Baines and celebrated by goading
Everton boss David Moyes over
diving claims by throwing himself
to the ground in front of the home
dugout before nodding a second
on 20 minutes. But midfielder Leon
Osman pounced on a poor punch
from stand-in Reds keeper Brad Jones
to rifle an instant response and
summer signing Steven Naismith
poked an equaliser 10 minutes
before half-time.
Against all odds it stayed two goals
apiece, although Rodgers insisted
that, contrary to referee Andre
Marriners judgment, Suarez had
not been offside when he
jabbed a would-be
winner in stoppage
time.
Were so
disappointed it
didnt count because
for me its an easy
decision, said
Rodgers, whose men lie 12th.
Im not going to keep going on
about officials because its been
happening to us all season.
Moyes laughed off Suarezs mock
dive celebration but argued that the
Uruguayan should have
received more than a
booking for a tackle on
Sylvain Distin.
I thought it was great.
Its the sort of thing I would
have done had I scored,
said Moyes, who are
fifth. But I
think he was a
lucky man to
stay on the
pitch.
Manchester United striker Javier Hernandez scored the winning goal in the 75th minute
NEWCASTLE manager Alan Pardew
welcomed his sides stroke of good
luck after Papiss Cisse fluked a last
minute winner at St James Park.
A Sammy Ameobi shot hit Cisse
and flew in with just seconds to go.
Newcastle had taken the lead
through a Demba Ba volley on 35
minutes before West Brom drew
level 10 minutes after the break
with a Romelu Lukaku header,
though Cisse stole the points.
Weve not had many breaks this
season, Pardew said. Weve won
the game and we'll take that.
Cisse poaches
lucky late goal
30
SPORT
cityam.com/sport @cityam_sport
SPURS boss Andre Villas-Boas hailed
new dad Gareth Bale after the
winger returned to the side
yesterday following the birth of his
first child and scored Tottenhams
opening goal of a narrow victory at
St Marys.
Bales header gave the visitors the
lead after a quarter an hour, with
Clint Dempsey doubling it before
half-time. Southampton fought
back with a 67th minute goal by Jay
Rodriguez, but Spurs held on to
claim three points.
I am extremely happy for him,
Villas-Boas said. He is a massive
player for the team. He is a player
that can make a difference with
small opportunities. He certainly
did that today and scored.
It was good for him to be back
on the scoresheet. He is certainly
someone we rate very, very highly
and can go all the way to becoming
one of the best.
Villas-Boas side threatened the
Southampton goal on several
occasions early on, before taking
the lead a quarter of an hour into
the game. Tom Huddlestone dinked
a diagonal ball to the far post where
Bale rose well and powered a header
downwards and past Southampton
goalkeeper Artur Boruc.
And in the 40th minute Aaron
Lennon found Jermain Defoe who
slid the ball past Boruc. Jose Fonte
tried to clear the ball off the line
but could only turn it into the path
of the onrushing Dempsey, who
made it 2-0.
Southampton rallied after the
break, and controlled the ball for
much of the second half. Maya
Yoshida somehow failed to knock in
an aerial chance from a yard out,
but the resulting corner proved
lucrative for the Saints.
Fonte flicked on the low cross
towards the near post and although
Brad Friedel clawed it out,
Rodriguez was on hand to knock
the rebound in with his right boot.
But Spurs held on, with the win
taking them into the top four.
AVB tribute to
new dad Bale
after Spurs win
Gareth Bale (right) scored for Tottenham
CHELSEA.....................................2
MANCHESTER UNITED................3
PREMIER LEAGUE
SOUTHAMPTON ..........................1
TOTTENHAM HOTSPUR ..............2
BY JULIAN HARRIS
PREMIER LEAGUE
EVERTON....................................2
LIVERPOOL.................................2
BY FRANK DALLERES
PREMIER LEAGUE
BY DECLAN WARRINGTON
AT STAMFORD BRIDGE
NEWCASTLE ...............................2
WEST BROM................................1
BY SPORTS DESK STAFF
PREMIER LEAGUE
Luis Suarez had
been called a diver
31
TEAM Sky insist sports director Sean
Yates, one of the key figures in the
British outfits success, was not
forced to quit over doping
confessions, following his abrupt
retirement from cycling yesterday.
Yatess exit came just days after
coach Bobby Julich was released,
having admitted to doping during
his riding career when quizzed by
Team Sky chiefs as part of their
attempt to root out past cheats.
Principal Dave Brailsford, who
launched the purge amid fresh
scrutiny of the sport caused by the
Lance Armstrong affair, said Yates
had left for purely personal
reasons. A Team Sky statement
added: Sean has been interviewed
and there were no admissions or
disclosures that would have required
him to leave the team.
Former British champion Yates,
whose history of working with
Armstrong at three different teams
as a rider and then a coach placed
his role in the spotlight, said his
conscience was clear.
The 52-year-old, who helped guide
Bradley Wiggins to the Tour de
France in July, added: I realise the
timing of my retirement will lead to
speculation but I can walk away with
my head high knowing I have done
nothing wrong.
Yates departs
Team Sky but
says hes clean
bad
attack
Sean Yates retired from cycling yesterday
WORLD No1 Rory McIlroy remains
on track to claim both the
European and American money
lists this year, despite failing to
catch Peter Hanson in yesterdays
BMW Masters in Shanghai.
The Northern Irish golfer lost to
the Swede by one shot in a
thrilling finish, yet McIlroy
nonetheless extended his lead at
the top of the European Tours
Race To Dubai money list.
He also leads Tiger Woods by
nearly $1.91m in the US PGA Tour
rankings, but must now hold off
Woods and Hanson in each race.
He played well and deserved his
win, McIlroy said of Hanson. To
go out there with the lead and
play the way he did and shoot 67 is
very impressive, so he was always
going to be tough to beat.
Hansons $1.16m pay cheque
lifted him above Englands Justin
Rose in the Race to Dubai, where
he now trails USPGA champion
McIlroy by around $800,000.
Hanson has competed in 19
tournaments in the European race
while McIlroy has only played in
12 and will now miss the $7m
WGC-HSBC Champions event at
Shenzhen, starting this Thursday.
Yesterday McIlroy was four
behind with five holes to play, yet
managed to test Hansons nerve by
narrowing the lead to one point.
Hanson held on to finish 21
under par, however, while
Englands Luke Donald, who
topped both the European and US
money lists last year, came third,
three shots behind McIlroy.
Red Bulls Sebastian Vettel took another step
towards winning the drivers championship
Formula One: Page 29
cityam.com
BY FRANK DALLERES
BY JULIAN HARRIS
McIlroy loses in Shanghai but extends Euro lead
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Y
OU have to be clinically insane
to do what I did on Saturday.
Horizontal rain, blowing a gale
with a Siberian chill factor, and
I voluntarily stood on a touchline
watching 30 men honest and true,
attempting to construct an
entertaining game of rugby.
Meanwhile yesterday morning
across the country, thousands of
young people opened their bedroom
curtains to the onset of winter, and
rapidly constructed reasons as to
why they would give mini-rugby
a miss. And there you have it.
The fundamental problem
confronting the game in this
country: the weather.
You can count on the (frozen)
fingers of one hand, the number of
visionary leaders across sport over the
years. Where would tennis be without
Lemar Hunt in the 60s or cricket
without Kerry Packer in the 70s?
Throw in to the mix those behind this
years London Olympics. People who,
with varying motivations, saw the
future and went for it.
So step forward rugby union
preparing to host the World Cup in
three years time after which, the
greatest legacy the mandarins at
Twickenham could give their sport
would be moving it to the summer.
Think of the benefits to the game
as a spectacle. Think of the benefits to
grass-root clubs who would not
need floodlights and so not
be forced to ransack their
first team pitch for
endless training nights.
Confront the reality of
dwindling player
numbers and consider
those non-rugby, mini-
rugby parents who hate
cold and wretched Sunday
mornings and yearn for their kids
to head for the swimming pool or the
taekwondo club. Think of the match-
day experience for the spectators. Half
the crowd at the game I saw on
Saturday left the grandstand at half
time for the warmth of the clubhouse
and the television.
Rugby union needs visionaries who
are prepared to start campaigning for
a global season so that international
matches, the pinnacle of the sport,
are played in a clearly structured
programme, which would then also
allow developing nations to be
part of the calendar.
It needs to forget some
romantic idyll of rain-
soaked pitches, players
and spectators fighting
against the elements, and
realise that freezing your
bits off on the touchline is
a less appealing prospect in
2012 than it might have been
20 years ago.
The Rugby Football Union,
wrestling the splinters from its
corporate bottom after years of sitting
on the fence, can be the catalysts for
change. Ian Ritchie and his team at
Twickenham have the opportunity to
save you and I from afternoons like
last Saturday.
Its time for rugby to
face cold reality and
seize chance to move
to a summer season
2015
When England
will host the next
Rugby World
Cup
SPORT
COMMENT
JOHN INVERDALE
In association with
Chelsea 9 7 1 1 21 9 22
Man United 9 7 0 2 24 13 21
Man City 9 6 3 0 18 9 21
Tottenham 9 5 2 2 17 13 17
TOP FOUR
TEAM PLD W D L F A PTS

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