THE FUTURE of Comet is hanging by

a thread after the troubled retailer

called in administrators yesterday,
sending its website crashing and
shares in rival electricals retailers
soaring.
OpCapita, the private equity firm
which acquired Comet for 2 less
than a year ago, confirmed it has
filed its intention to appoint
administrators with the view of
going into administration next
week.
Filing the notice at the High
Court puts in place a moratorium
giving the company five working
days of breathing space free of
creditors to discuss plans for the
retailers future.
The 80-year old firm, which
started as a business charging
batteries for wireless sets, employs
around 6,000 staff and runs 243
stores across the UK. Its failure
BY KASMIRA JEFFORD would mark one of the largest
collapses on the high street since the
credit crisis in 2008.
The pre-Christmas rush for stock
has put a squeeze on Comets
finances and the group was forced to
call in administrators after it was
unable to secure the credit
insurance needed to safeguard
suppliers.
Shares in rival Dixons closed up
more than 13.5 per cent last night
while Home Retail Group rose 3.9
per cent on Comets demise as
investors expect the chain to pick up
some of the market share.
Short term, though, there may be
some disruption as administrators
discount Comets stock to clear,
Freddie George, analyst at Seymour
Pierce said.
Sources said the firm is likely to be
broken up, with stores sold off to
other retailers and liquidators such
as GA Europe or Hilco.
Bank of England accepts it must do more to improve its predictions
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Comet has suffered in the face of fierce competition from rival retailers and internet firms
INFLATION has been damaging British
living standards and dragging down
the economy but the officials who
are meant to keep a lid on prices didnt
do enough to help because their fore-
casts were too often wrong, according
to a Bank of England report out today.
And even though the Bank was
consistently worse at predicting
changes in growth and inflation than
other economists, it stuck with its
flawed model, making excuses for its
errors instead of trying to improve its
forecasts.
The report from trouble-shooter
David Stockton, who used to
work for the Federal Reserve,
recommends the Bank hire
more experienced staff to boost
its economics team, look
more closely at the views
of Monetary Policy
Committee (MPC)
members who do
not conform to
the groups con-
sensus, and
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WATCHES OF THE YEAR
ISSUE 1,752 FRIDAY 2 NOVEMBER 2012
AMERICAS
FISCAL CLIFF
Why it matters, See The Forum Page 36
See Pages 19-33
MORE ON THE REPORT: Page 2

NEWS: Page 4, BOTTOM LINE: Page 5

Certified Distribution
27/08/12 til 30/09/12 is 128,785
BANK TOLD
FORECASTS
ARE FLAWED
BY TIM WALLACE
open the MPC up to greater scrutiny.
Interest rates are set by the MPC to
control inflation higher rates should
mean lower inflation, and vice versa.
But as interest rates take up to two
years to change prices, it has to rely on
forecasts. Although the crisis exposed
virtually all major macro models as
being woefully ill-equipped, Stockton
notes the Banks is worse than most.
For example, the MPC thought infla-
tion would fall to below one per cent
by 2010. Most other economists
thought prices would rise by nearly
two per cent.
But in fact inflation soared, hitting
3.5 per cent in January 2010.
Meanwhile the MPC held interest rates
at rock bottom, and blamed the high
inflation on temporary factors like
oil and food prices.
Stockton warned these excuses
may start wearing thin unless
there is an improvement soon.
The MPC will need to make
an effort to prevent the stan-
dard list of reasons that have been
developed to explain its errors from
becoming the Banks catechism of
forecast errors, he said.
The Bank of England welcomed
Stocktons report.
Given the challenges experienced by
forecasters during the financial crisis,
we will consider carefully the ideas for
improvement in the review, it said in
a statement. Analysis of past perform-
ance is already a part of MPCs forecast-
ing process, but we accept that the
Bank should do more in this regard.
Two other reports into the Banks
response to the financial crisis have
also been published. City grandees Bill
Winters and Ian Plenderleith praised
the Banks efforts to save the financial
system in the crisis, and said it had
done a good job of improving its
liquidity programmes since.
But they added the Bank should do
more to prepare in case a non-bank
financial crisis emerges, where its
liquidity programmes could do more
to help stem any future problems in
other financial sectors.
Governor Sir Mervyn King
will be retiring next year
Rivals set to gain as
Comet nears collapse
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
GLOBAL regulators yesterday said
Citigroup, Deutsche Bank, HSBC and
JPMorgan Chase will need to hold the
most extra capital of 28 banks consid-
ered so large and complex they need
an extra buffer to absorb potential
losses.
The four global banks will be
required to hold an extra 2.5 per
cent of common equity as a
percentage of risk-weighted assets on
top of a seven per cent minimum
being phased in from January,
according to the Financial Stability
Board (FSB), a regulatory task force
for the group of 20 top economies.
The additional cushion aims to make
sure large banks cannot threaten the
financial system in future crises and
require government bailouts.
Barclays and BNP Paribas were
assigned the next highest buffer of
two per cent, according to the FSB.
Eight banks including Bank of
America Corp and Goldman Sachs
fell in the next highest bucket of 1.5
per cent. The remaining 14 banks
will be required to hold one per cent
of extra capital. No bank was in the
3.5 per cent range, which is
considered a stick to stop banks from
growing any bigger.
The FSB published a list of 29 so-
called systemically important banks
last year, but last nights statement
was the first time that it assigned
specific capital buffers to each bank.
Regulators ask
banks to hold
more capital
Auditor calls payments
to SFO ex-chief irregular
THE SERIOUS Fraud Office (SFO)
made several irregular payments
to outgoing chief executive Phillippa
Williamson, according to the results
of an audit into the events surround-
ing her April departure from the
financial crime watchdog.
Investigators deemed 422,000
worth of payments benefiting
Williamson to be irregular, due to
a lack of legally required approval
from the Cabinet Office in one case,
and HM Treasury in another.
By failing to seek approval from
the Cabinet Office and the Treasury,
the SFO entered into an agreement
which forced it to make irregular
payments, said Amyas Morse, head
of the National Audit Office (NAO).
Even her voluntary redundancy
itself, secured on 16th April this year,
was carried out without due process,
Comptroller and Auditor General
Morse, leading the audit, judged.
The 422,000 was made up of
407,000 transferred to the civil serv-
ice pension scheme, in order to cover
extra pensions payments, and a
15,000 special severance payment
given directly to Williamson. The
SFO was required to gain approval
from the Cabinet Office to make the
first payment, and from HM
Treasury to make the second but
the NAO says there is no evidence of
Israel veto ends PotashCorp merger
Israel says it will block Potash Corporation
of Saskatchewans attempt to buy rival
fertiliser Israel Chemicals, derailing a
$15bn (9.3bn) deal to create the worlds
largest potash producer. The veto is the
latest example of growing resource
nationalism, in which governments block
foreign attempts to buy mining, oil, gas or
agribusiness companies.
Deutsche names North America head
Deutsche Bank has promoted a US
corporate finance banker to head efforts
to cement its place among Wall Streets
elite, making Jacques Brand chief
executive of its North American business
after Seth Waugh decided to step down.
Ebay ready for China push via tie-up
Ebay is to make a renewed push into China
via a partnership with Xiu.com, an online
retailer of luxury goods. The US group
plans to focus on importing high-end
goods at discount prices, taking advantage
of a growing desire for such items in China.
The planned partnership was revealed
when Chinese officials received invitations
to an event in Shenzhen.
Fernndez lets fly at bankers
Argentine President Cristina Fernndez
slammed vulture funds creditors who,
she claims, are leading a campaign to
force her country into a new crisis.
Solar industry at risk from trade war
China has fired the latest salvo in what
experts are describing as an escalating
global trade war in the solar industry,
with an attack on the European Union
over alleged unfair pricing and subsidies
for solar panels.
Teenager raises $1m for iPhone app
A south London schoolboy has launched
an Apple iPhone app this week, after
raising $1m (620,000) from investors
before his 17th birthday.
Gold to rally on Obama or Romney
Gold is likely to go much higher in the
course of the 45th President's four year
term whether there is a President
Obama or a President Romney, according
to analytics firm GoldCore, in its latest
newsletter.
GM nears new Opel chief
General Motors is close to naming former
Volkswagen executive Karl-Thomas
Neumann to manage its troubled Adam
Opelbusiness.
Fund urges challenge to Sprint
Mount Kellett, an investment firm run by
former Goldman Sachs executives has
trained its guns on Clearwire, urging the
wireless network operator to strengthen its
position in the face of a possible takeover by
its largest shareholder, Sprint Nextel.
David Green, director of the Serious Fraud Office since April, tried to block the payments
2
NEWS
BY HARRY BANKS
BY BEN SOUTHWOOD
To contact the newsdesk email news@cityam.com
I
T is usually claimed that the
financial crisis was caused by
excessively free markets. Those of
us who disagree and emphasise
governmentss role in distorting
markets, including by subsidising
risk via the moral hazard caused by
insane taxpayer guarantees and by
fuelling credit and property bubbles
via excessively loose monetary policy
are in a tiny minority.
This is not the place for a detailed
analysis of the real causes of the
financial crisis and there were of
course many. But it is interesting to
note that there is no correlation
between economically free countries
and those that suffered from a bank-
ing crisis. In this years Index of
Economic Freedom, published by the
Fraser Institute, Hong Kong retains
the highest rating for economic free-
dom globally, graded 8.90 out of 10.
EDITORS
LETTER
ALLISTER HEATH
Worlds freest economies managed to avoid banking crisis
FRIDAY 2 NOVEMBER 2012
The other top 10 nations are:
Singapore (8.69 out of 10); New
Zealand (8.36); Switzerland (8.24);
Australia (7.97); Canada (7.97); Bahrain
(7.94); Mauritius (7.90); Finland (7.88);
and Chile (7.84).
The only country in this top ten list
to have been genuinely caught up by
mass banking problems was
Switzerland. All nine others were
remarkably immune; Australia didnt
even go into recession, though its
economy was cushioned by exports of
commodities to China. Those major
countries that did suffer from the cri-
sis (or variants of it) were all less free:
Britain is ranked 12th freest (with a
grade of 7.75), the US 18th (7.69); Japan
20th (7.64); Germany 31st (7.52);
France 47th (7.32); Italy 83rd (6.77);
and China, which is suffering from a
massive crisis caused by centralised
misallocation of credit, is 107th (6.35).
In fact, the high watermark for eco-
nomic freedom in the US was in 2000,
many years before the crisis, when it
was graded 8.65 out of 10, having
improved substantially and steadily
starting in 1980 when Ronald Reagan
became president. By 2005, when sub-
prime lending was buoyant and the
credit bubble blowing, Americas
grade had already fallen to 8.21, with
a global ranking of 8th; by 2010, it
was down to 7.70 following the onset
of the crisis in 2007-08 and the
make sure they dont buy financial
products they dont understand. We
need a return to caveat emptor: the
buyer must beware. Nobody sues for
mis-selling if they allow a salesper-
son to sell them an overly complex
mobile phone with lots of functions
they will never use, and sign them up
to an excessively expensive contract
with more minutes and megabytes of
data than they will ever use. Its called
personal responsibility. It is also
wrong that a small minority of ambu-
lance-chasers are putting in fraudu-
lent claims for compensation.
Retail banks disgraced themselves.
But relying on regulators is naive cus-
tomers need to stop trusting anybody
apart from themselves. When in
doubt, dont sign up.
bailouts of large banks and car firms.
None of this proves anything but
it shows there is no simple causal rela-
tionship between overall economic
freedom and the financial crisis.
Some of the freest economies in the
world avoided the problems and the
biggest victims of the crisis were sub-
stantially less free than the likes of
Canada, which escaped unscathed.
Food for thought.
WHEN IN DOUBT, DONT SIGN UP
WHAT a mess the PPI crisis has
become. Banks need to put in place
structures to stop selling products to
customers that are bad for them, and
focus instead on selling basics, such
as mortgages or bank accounts.
Misselling or lying to consumers is
fraud and should be severely pun-
ished. Victims must be compensated.
But in future customers must also
approval being obtained in either case.
A new director, David Green, suc-
ceeded previous boss Richard
Alderman five days after both
Alderman and Williamson left the SFO
and Green decided not to approve
the payment transactions, judging
them inappropriate. However, upon
seeking legal advice, Green discovered
the SFO was legally obliged to make
the payments, even though they were
judged irregular.
Shadow Attorney General Emily
Thornberry said the revelations were
jaw-dropping and said current
Attorney General Dominic Grieve had
failedto get a grip on [the SFO].
We cannot have irregular payments
being made inside what is supposed to
be the countrys leading fraud investi-
gator, Thornberry argued. The SFO
faces budget cuts of more than 25 per
cent this parliament and can ill-afford
squandering half a million on
appalling decisions like this.
SFO director Green has commis-
sioned an independent review in
hopes of making sure future exit pack-
age provisions go through all the prop-
er channels.
CONTINUED FROMPAGE 1...
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
n The Stockton Review found the Bank
of England needs to make changes to
improve inflation and growth forecasting
n It should hire more staff to improve
predictions, and make sure to listen more
closely to staffs ideas
n The Bank should consider giving more
information on forecasts to the public
n And the Monetary Policy Committee
should listen more to members who
disagree with the consensus view, and
consider making the varying predictions
more publicly available
n Ex-JP Morgan banker Bill Winters
reviewed the Banks framework for
providing liquidity to the financial system
n He praised the Bank for adapting its
liquidity offerings as the financial crisis
has evolved
n And he said the Banks governance
structure works well, with the governor
effectively delegating to, and consulting
with, deputies
n But Winters also said the Bank of
England needs to take more steps to
ensure it could cope with a non-bank
financial crisis
n Former MPC member Ian Plenderleith
was commissioned to write a report on
emergency liquidity assistance
n He too praised the Bank of England for
acting quickly to aid HBOS and RBS
n Plenderleith said the secret nature of
the aid must also be repeated in future,
possibly by periodically forcing banks to
take help, disguising any real aid later
n And he also said the Bank should
consider getting more indemnity from
the Treasury to reduce its risks when
helping banks
THE BANKS REPORTS
LLOYDS recorded another loss in the
third quarter, yesterday setting aside
another 1bn to cover soaring pay-
ment protection insurance (PPI) mis-
selling claims.
The taxpayer-backed bank recorded
a loss of 361m in the three months
to September, a solid improvement
on the 501m loss in the same period
of last year.
Underlying profits doubled to
840m in the quarter, with impair-
ment falling 40 per cent to 1.35bn, a
1.1m increase in online customers
and another 148m saving from the
so-called Simplifications initiative.
And the bank also expects to bene-
fit from the Funding for Lending
scheme (FLS), a government and
Bank of England programme to help
banks borrow cheaply.
Lloyds has already taken 1bn from
the FLS, and expects to make a bigger
drawdown in the next two months.
Chief executive Antonio Horta-
Osorio said that should start feeding
through to increased loan volumes
and lower prices in the new year.
However, the bank still does not
know where its PPI provisions will
end. Lloyds thought it was over the
worst of the scandal, but still paid
Lloyds to pay
out another
billion on PPI
BY TIM WALLACE
out 250m per month to customers,
barely down on the 300m per
month in the previous quarter and
far higher than earlier expectations.
The extra 1bn provision takes total
provisions so far to 5.285bn. The
bank also set aside 150m against
German insurance mis-selling claims.
On the downside, the full and final
cost of PPI remains unknown, com-
mented Richard Hunter, head of equi-
ties at Hargreaves Lansdown.
Lloyds is exposed to the stuttering
economies of the UK and Ireland,
whilst there is pressure on margins.
The stock still holds no attraction to
the income seeking investor in the
absence of a dividend, whilst despite
its progress the government
breakeven price remains a distant
dream.
L
A
U
R
A

L
E
A
N
/
C
I
T
Y
A
.
M
.
Lloyds chief Antonio Horta-Osorio has now set aside almost 6bn to cover PPI payouts
Lloyds Banking Group PLC
1 Nov 26Oct 29Oct 30Oct 31 Oct
40.00
42.00
44.00 p
43.94
1Nov
FRIDAY 2 NOVEMBER 2012
3
NEWS
cityam.com
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Biggest banks earmark 10bn
to cover mis-selling claims
THE BIGGEST banks have now set
aside more than 10bn to cover PPI
mis-selling compensation payouts,
and analysts believe the total for
the industry has smashed the
12bn mark.
RBS today sets aside an
additional 400m to cover the
claims from aggrieved customers,
taking its individual total to
1.725bn so far.
And analysts believe HSBC will
set aside another 150m in its third
quarter results on Monday.
BY TIM WALLACE
It comes after Lloyds added
another 1bn to its provisions
yesterday, and Barclays set aside
700m extra earlier this month.
That will bring the total
compensation provisions for the big
four to 10.247bn so far, with other
scandals potentially inflicting
further costs on the banks.
There is also the potential for
further banana skins down the
road, said analyst Nic Clarke from
Charles Stanley.
The PPI redress situation has
turned out far worse than expected
and it is possible that issues like
customer redress relating to interest
only mortgages could prove
painful.
Part of the banks PPI problem
comes from claims management
companies who have aggressively
marketed their services, resulting in
a far higher number of claims than
expected.
Although the authorities, like the
Financial Ombudsman Service,
discourage consumers from using
CMCs as they can claim for free
themselves, the firms have alerted
more victims of mis-selling to the
potential payout.
THE BIG FOUR BANKS PPI PROVISIONS HIT 10BN
Bank Q3 Provision Total
Barclays 700m 2bn
Lloyds 1bn 5.275bn
RBS 400m 1.725bn
HSBC Est. 150m 1.247bn
TOTAL 2.25bn 10.247bn
HENRY Jackson, founder of
OpCapita, is no stranger to the UK
high street but his track record of
turning companies around has been
far from perfect.
His company picked DIY chain
MFI as its maiden takeover,
snapping it up for 1 in 2006 and
securing a 130m dowry before it
collapsed into administration with
huge losses two years later.
Comet now faces a similar fate
just a year after Jackson pledged to
return the kettles-to-computers
group retailer to profitability with
industry veteran John Clare at the
helm.
American-born, Jackson started
his career with First Boston, an
investment bank in New York before
moving to London and becoming
Deutsche Banks head
of European
consumer and
retail.
He set up
Merchant Equity
Partners in 2006,
which later became
OpCapita.
OpCapita boss
Jackson sees
repeat of MFI
BY KASMIRA JEFFORD
PROFESSIONAL social network
LinkedIn last night announced
third quarter results that beat Wall
Street profit and revenue targets,
defying troubles that have afflicted
internet rivals Facebook and Zynga.
Profits at the jobs network hit
$2.3m (1.43m) in the third quarter,
compared to a $1.6m loss in the
same period last year.
Excluding certain items, profit
per share was 22 cents, double the
expectations of analysts polled by
Reuters, and driving shares up 6.2
per cent to $113.52.
This swing into profit came from
an 81 per cent rise in revenues,
bringing them from $139.5m in the
third quarter of 2011 to $252m in
the quarter ending this September.
Now the firm expects to turn over
between $270m and $275m in the
fourth quarter, contributing to
total revenues of $939m to $944m
across the whole year it previously
expected revenues in the range
$915m to $925m.
Chief executive Jeff Weiner called
LinkedIn profit
double Wall St
expectations
BY BEN SOUTHWOOD
the last few months the most sig-
nificant period of product develop-
ment in the companys history,
hailing faster innovation and its
role in driving customer interaction
through LinkedIns jobs-orientated
social network.
These developments included noti-
fications familiar to Facebook, and
before that, MySpace users
revamped company pages, and
endorsements, which allow
LinkedIn members to recommend
colleagues for their skills. The firm
says members have endorsed one
another over 200m times since the
feature was implemented.
Possibly the most important
change was a redesigned and sim-
plified homepage to which traffic
has jumped 60 per cent, LinkedIn
claims.
The California-based firm has
claims 187m members both com-
panies seeking staff and profession-
als seeking work and makes
money from selling both adverts
and premium subscriptions, as well
as performing some recruitment
services for businesses.
The Christmas trading period is a Russian
Roulette quarter for retailers, Julie Palmer,
a partner at law rm Begbies Traynor
explains. The retailer has to decide to what
level they are going to stock their stores,
which places heavy demand on their cash
ows to fully stock if the suppliers wont
give them credit.
Suppliers obtain credit insurance to protect
themselves in the event that customers do
not pay their bills. It bridges the gap
between the date when a supplier ships its
goods to a retailer and when it gets paid for
those goods. But if they cant get credit
insurance then they are not going to supply,
and if they dont supply, then that acceler-
ates the retailers move towards insolven-
cy, Palmer said. Comet suffered further
withdrawal of credit insurance after
rumours that it was up for sale, prompting
suppliers to become increasingly nervous
over the companys future.
CREDIT INSURANCE EXPLAINED
COMETADMINISTRATION: INDEPTH
JULIE PALMER
BEGBIES TRAYNOR
FRIDAY 2 NOVEMBER 2012
4
NEWS
cityam.com
RETAIL FAILURES IN 2011/ 2012 L FAILURES IN 2011/ 2012 RETAIL 012
PREINSOLVENCY
POSTINSOLVENCY
STAFF
784
400
PREINSOLVENCY
POSTINSOLVENCY
8,000
4,500
STORES
PREINSOLVENCY
POSTINSOLVENCY
STAFF
313
224
PREINSOLVENCY
POSTINSOLVENCY
3,885
2,750 20 550
STORES
PREINSOLVENCY
POSTINSOLVENCY
STAFF
180
PREINSOLVENCY
POSTINSOLVENCY
4,000
STORES
PREINSOLVENCY
POSTINSOLVENCY
STAFF
614
388
PREINSOLVENCY
POSTINSOLVENCY
7,500
4,320
STORES
PREINSOLVENCY
POSTINSOLVENCY
STAFF
610
333
PREINSOLVENCY
POSTINSOLVENCY
6,000
3,896
STORES
PREINSOLVENCY
POSTINSOLVENCY
STAFF
146
60
PREINSOLVENCY
POSTINSOLVENCY
2,600
1,300
STORES
Opcapita
founder
Henry Jackson
NASDAQ OMX is offering incentives
to European trading firms in a bid to
win support for its nascent futures
exchange and ensure a strong start
for a market aiming to boost
competition in European futures
trading.
The New York-based exchange is
talking with banks and other
trading houses, encouraging them
to use NLX, a London-based futures
exchange set to debut in the first
quarter of next year, subject to
regulatory approval.
We are discussing a range of
incentives to encourage market-
making and volume growth on the
platform, said Charlotte Crosswell,
the chief executive of Nasdaq OMX
NLX.
In the past
fledgling
exchanges have
offered lower
fees, a share
in profits or
equity stakes
in return for
early client
support.
Nasdaq OMX in
race to attract
client support
BY CITY A.M. REPORTER
BARCLAYS yesterday vowed to fight a
US regulators claims that it rigged
energy markets, arguing its staffs
actions had no impact on prices.
The bank faces a $470m (292m)
fine from the Federal Energy
Regulatory Commission (FERC),
which accuses traders of manipulat-
ing markets from 2006 to 2008.
The four traders in question
Daniel Brin, Ryan Smith, Karen
Levine and their desk head Scott
Connelly no longer work at Barclays.
Barclays argues the charges laid
out in a legal document known as the
Order to Show Cause are overblown.
We strongly disagree with the alle-
gations made by FERC against
Barclays and its former traders, the
bank said in a statement. We believe
that our trading was legitimate and
above-board. The Order To Show
Cause is by its very nature a one-sided
document, and does not reflect a bal-
anced and full description of the facts
or the applicable legal standard.
Barclays vows
to fight market
fiddling charge
BY TIM WALLACE
But some damage has already been
done to the banks reputation.
In particular, a series of instant mes-
sages between staff have caused
embarrassment, and have been pre-
sented as evidence of manipulative
intent by FERC.
For example, Ryan Smiths instant
messages said variously he would
f***, crap on and prop up the
market. Smiths claims the language
referred to fun in the market were
dismissed by FERC as not credible.
The traders and the bank have 30
days to respond to the claims.
Barclays PLC
1 Nov 26Oct 29Oct 30Oct 31 Oct
228
234
232
230
236
238
p
239.25
1Nov
The Federal Energy Regulation
Commission (FERC) monitors the
electricity, gas and oil markets in
the US, with a particular focus on
the wholesale side.
That means it regulates sales,
reviews merger and acquisition
activity in the sector, and monitors
market and trading activity the
final point covering the accusations
levelled at Barclays.
FERC was set up 35 years ago, but
came into its own in 2005.
FERC: The US energy regulator
issues its biggest ever fine
BY TIM WALLACE The agency was given much
greater powers to go after
suspected market abusers in 2005
following the California power
trading scandal and the collapse
of Enron.
It wants to levy a $435m
(270m) civil penalty on Barclays,
as well as $349m in gains from the
alleged manipulation and interest
on those gains. That is far in
excess of the $245m settlement
the agency reached with
Constellation Energy at the start
of 2012, its biggest claim to date.
MONEY manager Invesco said
yesterday its third-quarter profit
rose two per cent as customers
added almost $12bn to the firms
funds.
Net income attributable to
common shareholders totaled
$170.6m, or 38 cents per share, up
from $166.9m, or 36 cents per
share, in the same period a year
ago, the Atlanta-based firm said in
a statement.
Assets under management
totalled $683bn, up 14 per cent
from a year earlier and almost six
per cent during the quarter.
Customers added a net $9.4bn to
long term funds.
Invesco profit
edges higher
BY CITY A.M. REPORTER
FRIDAY 2 NOVEMBER 2012
5
NEWS
cityam.com
New Barclays chief Antony Jenkins is facing other challenges including large PPI costs
NOMURA was hit by a record fine
yesterday after it admitted staff
had broken rules by sharing
insider information with clients.
The Tokyo Stock Exchange
charged the bank 200m (1.55m)
for leaking the information the
biggest fine the exchange has
ever given out.
Information was also shared
between the investment bank
staff and the sales units.
Such a breech of rules is not
treated as harshly under
Japanese law as profiting from
insider trading, but has still had
a profound impact on the bank.
The scandal had already led to
the resignation of chief executive
Nomura hit by record fine for
leaking insider information
BY TIM WALLACE Kenichi Watanabe in July.
In a mass resignation over the
summer, Watanabes top
lieutenant Takumi Shibata also
left the firm, alongside five
senior managing directors.
The bank has pledged to
review internal controls and
processes in an effort to stop any
repeat of the scandal.
Nomura is also cutting back its
investment banking operations,
trimming jobs in equities as part
of a $1bn (620m) savings drive.
Staff in London are likely to be
particularly badly effected by the
shake-up, as the City is one of the
banks largest centres outside of
Japan.
The banks shares fell 0.69 per
cent yesterday.
AMERICAN International Group
(AIG) earned a larger-than-expected
profit during the third quarter, due
in part to big gains on its investment
holdings.
AIG reported an overall profit of
$1.9bn, or $1.13 per share, for the
period, compared with a loss of
nearly $3, or $2.10 per share, in the
year-ago quarter. Analysts had
expected AIG to earn 86 cents per
share, on average, according to
Thomson Reuters.
Combined net investment income
from AIGs property-casualty and life
and retirement divisions rose 15 per
cent, contributing $505m to
earnings. AIGs sale of certain
AIG trumps forecasts but fears
over its future growth weigh
BY CITY A.M. REPORTER
securities, including a stake in
former subsidiary AIA Group, as well
as higher values of bond holdings,
contributed to those profits.
In AIGs property-casualty division,
net premium earnings fell 3.2 per
cent during the quarter. Pricing
improved, but AIG has been limiting
risk-taking in the business, the
company said. In its life and
retirement division, premiums
declined 2.7 per cent. Policy fees
climbed five per cent, but low
interest rates and costs related to a
regulatory probe into death benefits
also weighed on that business.
However, AIGs shares fell in after-
hours trading, which analysts
attributed to fears over the
sustainability of its profits.
C
OMETS are said to burn across
the sky on the death of a prince.
The passing of this Comet was
marked instead by the rise of its
rivals share prices, with Dixons
Retail Group doing especially well on
the assumption that its chains will
pick up business.
But no one can pretend that kind
of optimism burns especially
bright. A diminishing number of
retailers fighting over a
diminishing market is a dispiriting
prospect. And Comet burning out
does nothing to change the two
dominant trends of gloomy
economic conditions cutting
consumer spending and online
shopping disrupting bricks and
mortar business models.
It is true that Comet is not
necessarily a bellwether for the
sector. Turning such a deeply
troubled retailer around was never
going to be an easy task. Otherwise
Kesa would not have got rid of it for
just 2 last November while
agreeing to pay 50m itself and
continue to take on the liability for
its defined benefit pension scheme,
almost 40m in deficit. Still, among
those surviving retailers, the
awkward question is not just what
share of Comets customers can they
divide up between them, but who is
in the unenviable position of taking
the troubled chains place as
weakest of them all.
The answer shouldnt be Dixons,
which seems to have found
something of a sweet spot between
online and physical retail space with
its PC World, Currys and Dixons
brands. And the Home Retail Group,
which owns Argos, also saw a share
price bounce yesterday, and has just
launched a new strategy for Argos
that will see its trademark catalogue
shrunk back in favour of a stronger
tilt towards online. But while both
groups share prices have been
doing better of late, Dixons has not
recaptured the levels it achieved
before 2008, while Home Retail
Group has some way to go to recover
the losses it sustained in 2011.
The fundamental problem for the
remaining electrical retailers with
physical stores is that losing one
competitor doesnt really ease their
competitive challenge. Consumers
are still counting the pennies and
competitors are still plentiful. The
big online beasts like Amazon, with
its huge volumes and efficient
warehousing and delivery systems,
are an ever-growing danger. But in
the real world too, the expanding
catalogues of the supermarkets
create another inescapable pressure.
Tesco is now the third biggest
electrical retailer in the UK. The
John Lewis Partnership, having the
advantage of combining Waitrose
and John Lewis, has seen strong
electricals growth this year, bucking
the sectoral trend. To avoid
following on Comets coattails,
those it leaves behind will need to
overcome these increasingly
intractable challenges.
Charlotte Crosswell
wants to win clients
BOTTOM
LINE
MARC SIDWELL
Comets passing brings a brief celebration for rivals
shares but the challenges they face havent gone away
BAHRAIN-BASED investment firm
Arcapita has withdrawn a planned
London listing of its PointPark
Properties (P3) unit, highlighting
valuation gaps still exist between
sellers and investors despite renewed
life in the IPO market.
Developer P3, which has 46
warehouse properties across Europe,
had hoped to raise around 250m
through the London IPO, which was
announced last month.
The money raised from the listing
would be used to acquire a property
portfolio from Arcapita worth
760.1m (609.6m), with the rest of
the purchase funded through a 15
per cent equity stake being issued in
the firm to Arcapita.
P3 will continue to manage the
portfolio on behalf of its private
equity owner while Arcapita decides
its next move, which could range
from reviving the IPO at a later date
to a private sale, the banking source
said.
We can confirm that the initial
public offering has been withdrawn,"
a spokeswoman for Arcapita said.
Arcapita has determined that
there is greater value in not
pursuing an IPO ... Arcapita will
continue to assess all options to
optimise value for Arcapita and its
shareholders.
The offering was being run by
Credit Suisse and Deutsche Bank.
Property firm
scraps 250m
London float
BY CITY A.M. REPORTER
PEOPLE saving for pensions will see
the projected size of their final pen-
sion pots slashed under new rules
imposed by the financial watchdog.
The Financial Services Authority
(FSA) yesterday confirmed that the
projection rates used by pension
companies to give investors an idea
of what their pension
will be worth when
they retire must be
cut significantly.
It plans to reduce
the intermediate pro-
jection rate for tax-
a d v a n t a g e d
products such as
personal pen-
sions from the
current seven
per cent to five
per cent.
The FSA said
it was making
the change to
give consumers
a more realistic
impression of
the investment
Pension firms
forced to slash
growth rates
BY KATIE HOPE returns they might receive.
The move, taken after advice from
PricewaterhouseCoopers, comes
despite opposition from pension
providers which argued the drop
was too large, and could actually
deter people from saving.
In addition to pensions, the new
rules will also apply to the expected
growth rates for other financial
products including ISAs, endow-
ment policies and investment bonds.
For non-tax advantaged products
such as investment bonds, the inter-
mediate projection rate will be cut
from six per cent to 4.5 per cent.
The new projection rates reflect
PwCs independent and peer-
reviewed report and reduce the
possibility of consumers
being given a false impres-
sion of the investment
returns they might
receive, the FSA said.
The new rules will
come into force from
April 2014.
FSA chair Lord Adair Turner
wants people to be realistic
HURRICANE Sandy, which lashed
the Caribbean and east coast of
the US earlier this week, will help
push up insurance rates in the
affected regions, according to one
leading analyst.
Paul Bauer at ratings agency
Moodys said yesterday that the
event will likely help support price
increases going into 2013.
However he insisted that the US
property and casualty market can
absorb the negative impact with
their capital strength intact.
Catastrophe modelling firm AIR
Worldwide has estimated covered
Hurricane Sandy set to push up
insurance premiums next year
BY JAMES WATERSON losses at $7bn to $15bn and Bauer
expects US primary insurers will
pick up most of the bill.
Lloyds of London firms do not
appear to be facing any major
payouts, although the market
declined to speculate on the total
cost at this stage.
Shares in most of the major US
insurers have remained largely
stable since Wall Street reopened
on Wednesday, as analysts urged
investors to show restraint in what
is a stable and well-capitalised
business.
However it is inevitable that
final quarter profits will be
affected by payouts.
FRIDAY 2 NOVEMBER 2012
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NEWS
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US President Barack Obama met with some Americans affected by Hurricane Sandy
JAMES Murdoch sailed through a
shareholder vote over his future on
BSkyBs board at the broadcasters
annual meeting yesterday, on the
same day that it posted results
above expectations thanks to moving
more customers onto its triple-play
contracts.
BSkyB said it now has a third of its
10.7m customers taking pay-TV,
broadband and home phone services.
And 4.1m people are now buying the
broadband service, meaning Sky has
overtaken TalkTalk to become the
countrys third-biggest broadband
provider.
Revenues were up four per cent year-
on-year to 1.7bn in the three months
to the end of September. Profit fell
slightly from 307m to 288m due to
an increase in programming costs
associated with the first-time inclu-
sion of Formula One and the cost of
broadcasting the Ryder Cup golf tour-
nament, which a record 4.8m people
watched.
James Murdoch
eases through
BSkyB meeting
BY JAMES TITCOMB
The better-than-expected results will
have pleased BSkyBs shareholders,
who tabled 95 per cent of votes at yes-
terdays AGM in favour of retaining
Murdoch as a non-executive director
despite vocal campaigns from share-
holder advocacy groups and recent
criticism of his performance in his for-
mer role as chairman from regulator
Ofcom. Murdoch stepped down as
chairman earlier this year having seen
widespread dissent from shareholders
at last years meeting.
Shares rose almost four per cent in
trading yesterday.
Murdoch received 95 per cent shareholder support for his non-executive role
British Sky Broadcasting Group PLC
1 Nov 26Oct 29Oct 30Oct 31 Oct
710
740
760
p
759.00
1Nov
FRIDAY 2 NOVEMBER 2012
7
NEWS
cityam.com
Apple slapped by UK judge on
statement over Samsung case
APPLE was yesterday reprimanded
by a British judge for posting an
inaccurate statement on its
website associated with a UK Court
of Appeal ruling that concluded
arch-rival Samsungs tablet device
did not copy the iPad.
After Apple lost an appeal last
month against an earlier High
Court ruling that Samsung had
not copied the iPads design, the
company was told to issue the
statement acknowledging the
trials outcome.
BY JAMES TITCOMB
Samsung subsequently claimed
that the statement was not
appropriate.
Apple had acknowledged the
case on its website, but had also
pointed to cases it had won against
Samsung in other countries,
including the US, where Samsung
was ordered to pay Apple $1.05bn
(651m) in August.
The statement ended: While the
UK court did not find Samsung
guilty of infringement, other
courts have recognised that in the
course of creating its Galaxy tablet,
Samsung willfully copied Apples
far more popular iPad.
The company will now be forced
to put up an amended version
within 48 hours, even though
Apple asked for two
weeks to alter it.
Judge Robin
Jacob told the
court: I am at a
loss that a company
such as Apple
would do this.
Apple has also
been told to run
statements in
British newspapers.
We expect full-year dividends up three to ve per cent based on these
numbers. This reinforces our fundamentally positive view on BSkyB which is
predicated on the view that growth is much more solid/predictable than
investors might expect. We are buyers with an 850p target.
ANALYST VIEWS

BSkyBs numbers were solidly reassuring, with all key metrics showing
improvement over rst quarter 2012. Helped by the comprehensive HD Olympics
coverage, new product launches and continued up-selling of the product,
Sky has driven up average revenue per user. Buy rating and 818p target.

Revenue growth is now being driven by existing customers taking addi-

tional products. A number of positive regulatory developments during the peri-
od are once again allowing investors to focus on company fundamentals.
Our recommendation stays at Accumulate .

HAVE BSKYBS RESULTS

AFFECTED YOUR OUTLOOK
FOR THE COMPANY? Interviews by James Titcomb
THOMAS SINGLEHURST CITI

PATRICK YAU PEEL HUNT

SAM HART CHARLES STANLEY

IN BRIEF
RIM shares up on new handsets
nShares in BlackBerry maker
Research in Motion (RIM) leapt as
much as 10 per cent yesterday as it
confirmed it was testing the next
generation of handsets with
operators, a big step towards the
launch of BlackBerry 10, its soon-to-
be-released smartphone software
which has been repeatedly delayed.
RIM has seen its market share
significantly squeezed by Apple and
Samsung in recent years.
INSURER Legal & General (L&G) yester-
day announced record sales for the
three months between June and
September, with a 28 per cent growth
in new business to 533m as the
firms chief executive warned that
forthcoming EU industry reforms
might never be implemented.
The firm enjoyed a bumper quarter,
largely thanks to strong growth in
workplace pensions up 189 per cent
to 159m after it benefited from the
introduction of auto-enrolment
schemes for large companies.
Sales of protection products which
guard against loss of income were
up by a third year-on-year.
Meanwhile L&G chief executive
Nigel Wilson yesterday told reporters
that the EUs new Solvency II capital
rules for insurers might need to be
rewritten to meet regional demands.
I suspect therell be a more prag-
matic solution developed over the
next few years which meets the needs
of customers and regulators in
Legal & General
sees sales jump
to record high
BY JAMES WATERSON
France, Germany, the UK, Italy etc,
Wilson said on a conference call. To
try and harmonise 27 countries across
Europe in the midst of a financial cri-
sis is an extraordinarily difficult task,
and everybodys realising that this is
just going to be continually delayed.
Matthew Preston, an analyst at
Berenberg Bank, said there could be
an increase in dividend payments on
the horizon: Having spent the last
few years focusing on costs and new
business strain, we believe that L&G is
now best-in-class in terms of
operational efficiency.
International accounting body
in bid to ramp up its authority
THE WORLDS top accounting
rulesetter unveiled plans yesterday
aimed at buttressing its authority
and independence in the face of
calls from European groups for a
greater say in how new standards
are shaped.
The International Accounting
Standards Board (IASB) proposed
yesterday an Accounting Standards
Advisory Forum comprising 12
members from across the world.
The board currently relies on
informal, bilateral contacts with
scores of national accounting
bodies for input into writing new
BY CITY A.M. REPORTER rules but this has become unwieldy.
The answer is to establish a
multilateral forum where
representatives of the standard-
setting community can come
together with the IASB, said IASB
chairman Hans Hoogervorst.
Hoogervorst proposes giving
Europe three seats, the same as for
the Americas and for Asia-Oceania.
It would meet for just a day and a
half, four times a year in London
and, crucially, be chaired by the
IASB.
Members would have to sign up
to promoting a single set of global
standards and respect the IASBs
independence.
The IASB plan is in effect an
opening gambit as national
standard setters have already filed a
counter proposal to the IASB that
proposes a board with up to 20 seats
and far greater parity between the
IASB and national standard setters.
The IASB writes rules used in
over 100 countries, giving it clout
that critics say calls for much
greater accountability.
Accounting standards setting has
become politically charged since the
financial crisis, as policymakers
realise the reach that rules can
have such as making banks
recognise losses earlier in future,
before taxpayer bailouts are needed.
Legal & General Group PLC
1 Nov 26Oct 29Oct 30Oct 31 Oct
132
136
140
p
139.58
1Nov
ASSET manager Henderson
suffered 1.13bn in net outflows in
the third quarter of the year, but
managed to increase assets under
management thanks to positive
market movements.
Chief executive Andrew Formica
said he is encouraged by the strong
investment performance across our
clients portfolios in spite of
market-wide reluctance to put
money into more risky products.
The firm said 70 per cent of its
equity funds and 92 per cent of its
Further outflows for Henderson
but funds improve performance
BY MARION DAKERS
fixed income funds outperformed
the market over the year.
Henderson nevertheless saw
clients pull a net 1.1bn from
equities, 53m from fixed income
and 12m from private equity in
the quarter.
The exodus from Hendersons
retail products slowed, with
outflows of 296m compared to
792m in the previous quarter.
Total assets under management
grew 1.2bn to 64.8bn.
Shore Capital said Henderson
had disappointed in terms of the
quantum of net outflows.
FRIDAY 2 NOVEMBER 2012
8
NEWS
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Andrew Formica is encouraged by the outperformance of many of Hendersons funds
Osborne warns rebels there is
little chance of EU budget cut
GEORGE Osborne yesterday
admitted that Britain has little
chance of securing a real-terms cut
to the EU budget, despite losing a
parliamentary vote on the matter.
I want a cut in the EU budget,
David Cameron wants a cut, pretty
much every Conservative wants a
cut, Osborne told the BBC.
But he warned: Weve not just
got to get this past the House of
Commons, there are also 26 other
European countries who have also
got vetoes.
He suggested the governments
proposed two per cent rise in-line
BY JAMES WATERSON
with inflation is a more realistic
negotiating position.
On Wednesday night Conservative
rebels joined with the Labour party
to defeat the government by 307 to
294. The rebels non-binding
amendment calls on David
Cameron to demand a
reduction in EU spending
plans for 2014-2020.
The European
Commission wants a five
per cent increase.
Meanwhile Deputy Prime
Minister Nick Clegg
hinted he would
fight
Conservative
plans to repatriate certain EU powers
on law and order from Brussels.
A grand, unilateral repatriation
of powers might sound appealing
but in reality, it is a false promise,
wrapped in a Union Jack, he said in
a speech at Chatham House.
He also said it would be wrong to
leave the EU but seek to stay in the
single market, similar to the model
used by Norway and Switzerland:
These countries sit and wait for
bills and directives from
Brussels...with absolutely no say
over Europes rules.
SMALL-CAP broker and adviser
Finncap is bullish about further
growth, after delivering an
operating profit in the first half of
the year.
The firm said yesterday revenues
rose to 5.7m in the six months to
the end of October, from 5m a
year ago, and operating profits
jumped from 260,000 last year to
1.1m in the latest period.
FinnCap now boasts the biggest
client roster on the Alternative
Investment Market, having
overtaken Cenkos on the back of a
string of mandate wins.
It said it raised 80m for its 103
clients in the half, including three
initial public offerings, as it carved
Finncap gains momentum on a
string of small-cap client wins
BY MARION DAKERS
out market share while listing
action on the main London Stock
Exchange all but disappeared.
Corporate fees rose 30 per cent
in the period, Finncap said,
though secondary commission was
weak.
Jon Moulton, Finncap chairman,
said the firm had enjoyed a
strong six months in a weak
market.
We have welcomed 12 new
clients since April and have
continued to improve our client
service. We look forward to
further progress, he said.
The revamped ICAP Securities &
Derivatives Exchange, formerly
known as Plus Markets, could
provide an avenue of growth for
Finncap.
Quarto sales dip ahead of vote
nQuarto, the independent publisher
at the centre of a battle for boardroom
power, yesterday said trading had
been subdued in the last three
months. Sales dipped to $127.2m
(78.8m), while profit fell from $6m
to $5.5m. Rebel investor Harwood
Capital, which wants to oust chief
executive Laurence Orbach, said that
Quarto breached rules by sending a
late circular about the upcoming vote.
UBM buys Canadian Newswire
nBritish business publisher UBM
yesterday said it was paying 30.1m
for the Press Association (PA)s 50 per
cent stake in news organisation
Canada Newswire (CNW). The deal
gives UBM control of the group as it
adds to its 17 per cent stake in the
company. UBM will now integrate
CNW with its newswire division, PR
Newswire. The deal will also see David
Levin, UBMs chief, join PAs board.
US pharmaceutical giant Pfizer
yesterday posted quarterly
revenue well below Wall Street
expectations, on disappointing
sales of its Prevnar pediatric
vaccine and a sharp pullback in
emerging market revenue.
Results were also hurt by
weaker-than-expected sales of
Pfizers Lipitor cholesterol fighter,
which has been facing cheaper
generics since late last year.
The firm earned $3.21bn
(2.57bn) in the third quarter,
down from $3.74bn a year ago,
when it recorded a $1.3bn gain
after selling off Capsugel.
Like many others in the third
quarter, Pfizer was weak at the
Pharma firm Pfizer falls short
on slowing new market sales
BY CITY A.M. REPORTER
revenue line, missing [forecasts] by
five per cent, said Jefferies and Co
analyst Jeffrey Holford.
However, better-than-expected
operational efficiencies in
manufacturing and a lower-than-
expected tax rate rescued earnings
to an in-line result.
Global sales fell 16 per cent to
$13.98bn, well below Wall Street
expectations of $14.64bn.
Revenue from emerging
markets countries whose fast-
rising spending power is key to
Pfizers growth fell two per cent
to $2.39bn as the stronger dollar
cut into the value of sales.
Sales of Prevnar 13 fell 14 per
cent to $868m, while sales of its
older Prevnar 7 vaccine dropped
17 per cent to $81m.
Osborne said he will fight
to curtail EU spending
OIL major Shell shouldered a 15 per
cent fall in current cost of supply
(CCS) profit in the third quarter, as it
warned of global economic weakness
across the board.
Net profit on a CSS basis over the
three months to September was
$6.1bn (3.8bn), down from $7.2bn in
the third quarter of last year, hurt by
lower oil and gas prices and a US
shale gas writedown.
Excluding exceptional items, earn-
ings came in at $6.6bn, a six per cent
drop year on year.
Were seeing evidence of a weak
economy all around us in our down-
stream, marketing and our chemi-
cals business, warned Simon Henry,
chief financial officer at the Anglo
Dutch oil giant.
Upstream production, typically the
driver of profit over the long term,
fell to 2.9m barrels of oil a day in the
period, a mere one per cent increase
on the previous quarter.
Shell held its interim dividend at
Lower oil prices
hamper Shell
as output stalls
BY CATHY ADAMS
43 cents a share, an increase of one
cent year on year.
This year has been an active one for
Shell, with $6bn of disposals and an
equal amount of acquisitions.
In September, the oil major said it
would begin a drilling programme in
the Arctic sea as part of a multi-year
exploration plan.
On the back of its results, Investec
upgraded the stock from sell to
hold, with a target price of 1,936p.
Investors reacted positively yester-
day to the results, as shares closed up
2.33 per cent.
FRIDAY 2 NOVEMBER 2012
10
NEWS
cityam.com
INSIDE
TRACK
C
ORPORATE broking relation-
ships in the City tend to be pretty
sticky, which is one reason
bankers tell me that Barclays is
so far hanging on to many of its
newly-won clients even though the
ultimate force behind its move into
this line of business, former chief
executive Bob Diamond, is very much
no longer with the bank.
The Swiss bank UBS also stands
proudly at number two in the league
table of FTSE 100 clients, with 29
companies choosing it as one of its
brokers.
One of the stickiest relationships of
all has been that of Daily Mail and
General Trust, the media group, and
JP Morgan Cazenove until that was
ended, without any fuss, a few weeks
ago.
Cazenove, as it then was, has been
broker to DMGT for decades, and sur-
vived in its advisory role even as it was
partnered and then fully bought out
by JP Morgan, the US investment bank.
But DMGT, whose other corporate
broker is Credit Suisse, has decided to
cut its ties on the recommendation of
chief executive Martin Morgan.
With 74 per cent of its profits com-
ing from its business to business activ-
ities, Jonathan Harmsworths Daily
Mail and General Trust group is
becoming less and less reliant on its
national newspapers for its financial
growth.
An adviser to the group said yester-
day: With the business moving away
from a reliance on newspapers
towards business to business activities,
it was felt that a fresh set of advisers is
the way to go.
JP Morgans rivals, who covet its posi-
tion as the leading broker to FTSE 100
companies (38 at the latest count),
may view the loss as significant and
have been heard muttering how
Cazenove is in danger of losing the
uniqueness that it had before being
fully subsumed by JP Morgan.
But JP Morgan insiders say there is
no need to panic. The firm has recent-
ly won mandates for Croda,
Hammerson and G4S and is in no
mood to surrender its pole position
any time soon.
LONDON SET TO MISS OUT ON OIL FLOAT
RBCs offices near the Thames in the
City of London recently hosted pitch-
ing meetings for the forthcoming
$500m (310m) money-raising for the
oil group Addax & Oryx group.
RBC is likely to lead the forthcom-
ing flotation, with Bank of America
Merrill Lynch and Barclays complet-
ing the syndicate.
Sadly for London, the group is
expected to list in Toronto rather
than here, and isnt even contemplat-
ing a dual listing structure despite
Londons strengths as a base for natu-
ral resources and exploration stocks.
With only four full listing flotations
since the beginning of the year,
London could have done with part of
the action but the management
team, which knows Toronto and its
investor base well, appears to prefer
that jurisdiction.
Group chairman Jean-Claude
Gandur netted $1.5bn when he sold
Addax Petroleum to Chinas Sinopec
Group in 2009.
He then returned to oil exploration
with Oryx Petroleum in 2010. He has
stakes in two fields in Iraqs Kurdish
region, and is vying for more in
Africa. He also founded the Fondation
Gandur pour lArt in Genevas Muse
dArt et dHistoire.
DMGT looks ahead as it cuts ties with JP Morgan Caz
DAVID HELLIER
david.hellier@cityam.com
Follow me on twitter @hellierd
KREMLIN-controlled energy
producer Rosneft yesterday posted
soaring profits, just a week after
announcing its $55bn (34bn)
acquisition of Anglo-Russian oil
firm TNK-BP.
Profit for the three months to
September came in at a five-year
high of 181bn rubles (3.59bn), up
from a loss of 8bn rubles in the
previous quarter, thanks to higher
oil prices, greater sales volumes
and better cost efficiencies.
Free cash flow for the energy
firm jumped 112 per cent to 53bn
rubles over the third quarter, as it
bolstered its finances ahead of the
TNK-BP takeover.
The improvement in the oil
Rosneft profit jumps ahead
of $55bn TNK-BP takeover
BY CATHY ADAMS
markets boosted Rosnefts third
quarter revenues by 11.7 per cent
to hit 802bn rubles.
Rosneft president Igor Sechin
said the results were the start of a
transformational programme to
cut costs within the company,
which have already yielded strong
results in production and sales.
This allows us to improve the
company's financial standing and
build stronger foundation for
efficient implementation of our
strategic projects, Sechin added.
Buying TNK-BP from its current
owners BP and AAR will help
Rosneft become the world's largest
listed oil company, with daily
output of 4.6m barrels in oil-
equivalent terms, once the deal
closes in the next six months.
Royal Dutch Shell PLC
31 Oct 25Oct 26Oct 29Oct 30Oct
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2,120
2,160
2,180
2,140
2,200 p
2,167.74
1Nov
THE Golden Lion pub in Mayfair has
been transformed this week by
Thomas Pink, the official outfitters of
the British & Irish Lions 125th
anniversary tour to Australia.
The newly-named Pink Lion has not
only had a rosy-coloured makeover for
the week, but is displaying the official
tour stash. Not your typical rugby
shirts and hoodie gear but velvet
smoking jackets and vintage
print merino wool
scarves.
Phil Vickery is
pulling pints at
the Pink Lion
Special guest pub landlord for the
week is new Lions head coach Warren
Gatland and ex-England international
Lewis Moody. And The Capitalist spied
former England Captain Phil Vickery
sharing a Lions tale with Citi trader
and ex-England player Josh Lewsey on
Tuesday night. Lion giant Martin
Bayfield was also on hand to pull pints
but admitted, despite being a fan of
the new jackets, he was only wearing
the tie, socks and cufflinks because:
Nothing else fits! Little surprise
when you wear size Hagrid.
Tonight is the last night
of pink-themed rugby
shenanigans. To reserve
a place this evening visit
pinkunbuttoned.com
L
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Left to right: Warren
Gatland, Lewis Moody
and Martin Bayfield
11
cityam.com
Remember, remember the 5th of
November? Although there will be
fireworks cracking all over London this
weekend, in early celebration of Guy
Fawkes night, our fair City will be still.
Traditionally there is a display of
bangers at The Lord Mayors Show,
which is on 10 November. The show,
which first began in 1215, is to welcome
the incoming Lord Mayor of the City of
London to office. However, tissues at the
ready for poor Alderman Roger Gifford
please, as this year the fireworks display
is cancelled. Despite the show going
ahead as usual, the organisers feel that,
after a summer of Diamond Jubilee and
Olympic celebrations: There's only so
many fireworks we should be sending up
in one year!
FRIDAY 2 NOVEMBER 2012
cityam.com/the-capitalist
THECAPITALIST
EDITED BY CALLY SQUIRES
Got A Story? Email
thecapitalist@cityam.com
Several spread betters have been
crying into their coffers this week
over the two unprecedented goal fests in
the Capital One Cup. The 7-5 Arsenal
win and 5-4 Chelsea win hit the sports
room of Spreadex painfully hard. The
Capitalists man on the inside at the firm
confessed: These matches have been a
spread punters dream and a sports
traders nightmare. We lost more than
300,000 on the two games alone and
are praying for some 0-0 bore draws in
the Premier League this weekend. It
was a similar fate over at Sporting Index
who were down 350,000 after wincing
through the Gunners match: It might
have been amazing television viewing,
but it was a horror show as far as we
were concerned.
WITH Poppy Day fundraising
events happening all over
London yesterday, from Covent
Garden to Clarence House, the
Square Mile certainly did not let
the capital down.
The Military Wives Choir were
serenading the masses on the
steps of St Pauls Cathedral; and
over in Leadenhall market HMS
Collingwood Band were striking
a chord with City workers. The
The Square Mile comes out in
force for Londons Poppy Day
fundraising spirit even made it
out to Canary Wharf where the
Royal Artillery Band were
helping volunteers from Morgan
Stanley and Barclays encourage
donations to support the Royal
British Legion.
Sadly the gusty winds
prevented The Royal Marines
from abseiling down the south
side of Broadgate Tower. But
theres always next year.
Army Captain and Olympic gold medal winner Heather Stanning (centre) in Leadenhall
market flanked by members of the Royal Navy (right) and Royal Air Force (left)
DISMAL trading for British manu-
facturers kept the sectors purchas-
ing managers index (PMI) firmly in
negative territory in October, with
the gloomy conditions reflected
across the world.
Just a week after the UK economy
was shown to have grown one per
cent in the quarter to the end of
September, Markit and CIPS PMI
reading for UK manufacturing fell
to a worse-than-expected 47.5 for
October.
This was down from a downward-
ly revised 48.1 in September and
well below the 50 mark between
growth and contraction.
Total new orders fell for the sev-
enth month running, with signs of
slowing demand from Asian buyers
in yesterdays report.
This is a dismal start to the fourth
quarter, reflecting underlying weak-
ness in the manufacturing sector,
said Nida Ali from the Ernst &
Manufacturers
say trading is
getting worse
BY MARION DAKERS
Young Item Club.
While demand from the Eurozone
was expected to be disappointing,
reduced demand from Asia amid a
general global economic slowdown
is particularly discouraging.
Chinas manufacturing PMI also
remains below the no-change level
at 49.5, Markit and HSBC said yester-
day, but the picture has improved
slightly since September and the fig-
ure is at an eight-month high.
The small rise in Chinas latest
PMI offers a glimmer of hope as it
suggests that factory output is accel-
erating again, which may mean bet-
ter economic performance for Asia
in coming months, and may link
through to an increase in UK exports
to Asia, said Stephen Cooper, UK
head of manufacturing at KPMG.
Greeces PMI for the month
slumped to 41, boding ill for the
Eurozone-wide figures due today.
Ireland, however, bounded to
further expansion with a reading
of 52.1.
House prices edge back up but
market is still in the doldrums
HOUSE PRICES climbed during last
month, Nationwide revealed
yesterday, bouncing back after the
slip in September and months of
weakness in the housing market.
The Nationwide house price
index grew 0.6 per cent last
month, after the 0.4 per cent slip
into September. Earlier slips mean
the index is still 0.9 per cent lower
than it was a full year ago, but this
is an improvement on last month,
when the yearly decline measured
at 1.4 per cent.
BY BEN SOUTHWOOD
Nationwide chief economist
Robert Gardner said both the
monthly increase and the yearly
decline fed into a generally flat
interpretation of the housing
market. Monthly price changes
have failed to establish a strong
trend in either direction over the
past six months, Gardner said,
The annual pace of change
continues to display a picture of
relative stability.
Gardner judged that the Bank of
Englands Funding for Lending
scheme was supporting housing
demand, but said the scheme
could not hold it up alone,
especially in such a tough overall
economic climate.
IN BRIEF
Czech rates cut to record low
n The Czech Central Bank yesterday
moved interest rates to a record low of
0.05 per cent in a bid to help pick the
country out of a long-running recession.
The cut means the bank has slashed
rates from 0.5 per cent in the space of
two months. Officials are also
considering further measures aimed at
kick-starting the economy, after the
bank repeated its forecast of a 0.9 per
cent contraction this year.
Builders call for cut in VAT
n The government should slash VAT on
home improvements to five per cent, said
materials supplier Wickes today, in order
to chop the wedge between cowboy
builders and honest tradesmen. Wickes
says that pricing pressures are driving
consumers to hiring less reputable
builders at prices that those who pay tax
cannot offer. A five per cent VAT rate for
contractors would wind down this
evasion almost overnight, it said.
QE may last until jobless hits 7.25pc
n Boston Federal Reserve president Eric
Rosengren yesterday called on the Fed to
carry on purchasing assets until the
unemployment rate came down to 7.25
per cent. The headline rate was 7.8 per
cent in September, but weekly new
unemployment insurance claims seem to
be trending downwards. New claims fell
9,000 over the last full week of October,
the Department of Labor said yesterday, to
hit 363,000 versus 398,000 a year ago.
US STOCKS JUMP: Page 18

FRIDAY 2 NOVEMBER 2012
12
NEWS
cityam.com
The new
jobs website
for London
professionalsT
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ADP SHOWED JOBS IMPROVEMENT IN MOST SECTORS
UNITED KINGDOM
down from
48.1 47.5
UNITED STATES
down from
51.1 51.0
BRAZIL
up from
49.8 50.2
CHINA
up from
47.9 49.5
RUSSIA
up from
52.1 52.9
TURKEY
up from
52.2 52.5
INDIA
up from
52.8 52.9
GREECE
down from
42.2 41.0
AUSTRALIA
up from
44.1 45.2
IRELAND
up from
51.8 52.1
EUROZONE
DATA
OUT TODAY
46.1
IN SEP
* All gures refer to October versus September
THE UK should not expect
economic growth this year, despite
a surprise one per cent expansion
in the latest quarter, according to
research out today.
The National Institute for
Economic and Social Research
predicts a 0.1 per cent contraction
during 2012, as the Olympics boost
is subsumed by a broader slump.
However, this is slightly higher
than its previous forecast in July.
Gathering clouds over the global
economy have pushed NIESR to
lower its sights for the UK in 2013.
NIESRs closely-watched forecasts
now pencil in a 1.1 per cent rise
Think tank says Britain should
prepare for no growth this year
BY MARION DAKERS
next year, predicting that UK
output growth will trundle higher
until it passes two per cent in 2015.
This is likely yo knock back
efforts to reduce the public
spending deficit, NIESR adds. It
thinks the budget will be broadly
balanced by 2016-17, echoing hints
from George Osborne that the
timetable is slipping.
The chancellor will give an
update on the state of the austerity
programme in next months
Autumn Statement.
NIESR thinks the global economy
will expand at a below-trend 3.1 per
cent this year, as the West struggles
to recover and the runaway growth
of the BRIC countries stabilises.
US gets employment boost as
consumer confidence rockets
US EMPLOYERS added a slew of
employees to their payrolls
between September and October,
data revealed yesterday.
And America also received a
boost from a key measure of
consumer confidence, which rose
to a four year high.
The Conference Boards index
of morale rose to 72.2, up from
68.4 in September.
Meanwhile total US non-farm
private employment climbed
158,000, according to Automatic
Data Processing (ADP).
The picture varied according to
sector, however, with just 14,000
extra jobs in goods producing
industries, compared to 144,000
in the service sector.
BY BEN SOUTHWOOD
And manufacturing
employment actually fell 8,000.
Separate Institute of Supply
Management (ISM) data also
suggested the manufacturing
sector was having some trouble
shifting out of first gear and
accelerating into full recovery
mode. ISMs purchasing managers
index (PMI) business survey for
October was 51.7, an increase of
0.2 on September, but still only
suggesting moderate expansion
50 indicates no change in
conditions. Still, the improvement
is encouraging after the declines
seen in June, July and August.
And a big jump in planned
layoffs also pointed to weaker
than hoped for recovery. US-based
companies planned to lay off
47,724 employees in October,
Challenger Gray & Christmas
revealed, a surge of 41 per cent
compared to September.
And productivity climbed 1.9
per cent in October, measured at
an annualised pace, the Labor
Department said yesterday.
Patchy recovery in the US jobs market in October
10 0 -10 20 30 Thousands 40
Construction 23
-8
9
Manufacturing
24 Trade/Transport
Financial
35 Pro/Business services
Small October rise cannot overturn dip below trend
Q382 Q394 Q312
40
80
120
160
220
240 thousand
Real house price
Trend growth in house prices (2.8%per year)
in store mobile carphonewarehouse.com
WE COMPARE ALL THE MAJOR NETWORKS
PERFECT ONE
TO FIND THE
FOR YOUR
5
TM and 2010 Apple Inc. All rights reserved.
www.BarclaysATPWorldTourFinals.com
5 -12 November
The O2
FOR CORPORATE HOSPITALITY, PLEASE CONTACT IMG ON 020 8233 5888 OR ATPTennis@imgworld.com The players shown are for illustrative purposes only.
Qualication and participation subject to ATP rules. MEDIA PARTNERS
FINAL TICKETS REMAINING
FOR THE SEASON FINALE
IT ALL ENDS HERE
IN BRIEF
Hunting is confident on full year
n Shares in oil field services company
Hunting rose more than six per cent
yesterday after it said it was confident
about meeting expectations for the
year, in spite of rising competition in
the US shale drilling business.
Analysts expect Hunting to post
annual pre-tax profits of 114m. US
rivals have warned recently on the
impact of the stalled land drilling
market on their businesses due to
weak gas prices.
US CORPORATE RESULTS
ROUND UP
A COST-CUTTING drive boosted BTs
profits in its second quarter, despite
regulation and the economic down-
turn hitting sales.
The telecoms giant put the fall in
turnover down to regulation, reces-
sion and rain after a wet summer
meant more engineers repairing
infrastructure instead of rolling out
new services. It also booked an 85m
payment due to a Court of Appeal
ruling on ladder pricing on call ter-
mination charges.
BT reported a seven per cent rise in
pre-tax profits to 608m despite rev-
enue falling nine per cent to 4.47bn.
The troubled Global Services arm
which sells services to multination-
als and governments continues to
make a loss. The department is dou-
bling down on cost savings under its
new boss Luis Alvarez.
We have taken some hits, chief
executive Ian Livingston said, adding
that there is a lot to be done in
Global Services. The company also
BT savings plan
offsets blows
from recession
BY JAMES TITCOMB
announced that its rollout of super-
fast fibre broadband networks was
ahead of schedule. BTs fibre network
now reaches 12m homes, and the
company estimates it will be available
in two-thirds of the UKs buildings in
Spring 2014 18 months ahead of the
original target.
BT is aggressively expanding in pay-
TV, taking on Sky with a sports chan-
nel after it shelled out 738m for the
rights to show live Premier League
football matches. We are convinced
that TV is going to be an important
part of our business, Livingston said.
BT Group PLC
31 Oct 25Oct 26Oct 29Oct 30Oct
215.00
217.50
220.00
225.00
227.50
222.50
230.00 p
225.31
1Nov
RELENTLESS demand for
cappuccinos and lattes fuelled a
higher than expected fourth
quarter profit for Starbucks.
The coffee chain, the largest in
the world, last night reported net
profit of $359m (222.6m), for the
three months to the end of
September, up from $358.5m for
the same period a year ago.
Overall, revenue rose 11 per cent
to $3.36bn.
On the back of the strong
Starbucks ups forecast for 2013
as its profit beats expectations
BY KATIE HOPE
performance, Starbucks raised its
earnings per share forecast for
2013 to between $2.06 to $2.15 a
share, from $2.04 to $2.14 per share
previously.
Global sales at stores open at
least 13 months rose six per cent,
helped by a five per cent increase in
traffic and a one per cent rise in
average spending per visit.
It said it would now open 1,300
new stores globally, up from the
1,200 originally planned.
Shares jumped 6.3 per cent to
$49.55 in after hours trading.
FRIDAY 2 NOVEMBER 2012
15
NEWS
cityam.com
Starbucks chief executive Howard Schulz said he is optimistic about the future
Terms apply.
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nearest store
Avon slashes payout
after earnings drop
Xchanging expands in Asia
nOutsourcing firm Xchanging
yesterday unveiled plans to open two
new delivery centres in Asia as part of
its expansion in the region. The firm
currently has 4,500 staff at 18 offices
in the area and is adding two offices in
the Philippines and China to meet
demand in sectors such as insurance,
real-estate, banking and financial
services. The firm also said it will offer
new product lines in Asia, including
cloud computing.
Croda sells Italian business
nSpeciality pharmaceutical company
Croda, which counts Procter & Gamble
and Unilever among its customers, is
to sell its Italian arm to a private
company in the country. It is believed
to be sold for between 1 and 2m.
Completion of the deal is expected to
take place before the year end.
Meanwhile, Croda said its third quarter
sales were robust, up 3.2 per cent
compared to the previous year.
AVON slashed its dividend by
nearly 74 per cent yesterday,
while also announcing measures
to cut costs by at least $400m
within three years in moves
designed to shore up its finances
while its new chief executive
officer works on a turnaround.
The company also reported a
steep plunge in third-quarter
earnings, hurt by higher product
costs and unfavourable
exchange rates.
Avon reported a net profit of
$31.6m, or seven cents per
share, compared with $164.2m,
or 38 cents per share, a year
earlier. Revenue fell to $2.55bn
from $2.76bn.
Yelp reveals a loss
but meets forecasts
YELP last night reported a third-
quarter loss, but posted sales
that were in line with its
recently revised outlook as the
online review and
recommendation company
highlighted its growth in local
businesses and mobile usage of
its service.
Yelp said that for the quarter
ended 30 September, it lost
$2m, or three cents a share, on
revenue of $36.4m, compared
with a loss of $3.8m, or 24 cents
a share, on sales of $22.3m in
the same period a year ago.
Average monthly unique
visitors were 84m up 37 per
cent year over the year.
Estee Lauder lowers
top end of sales view
ESTEE Lauder yesterday lowered
the top end of its full-year sales
forecast, pointing to uncertainty
in some key markets.
The company, known for brands
such as La Mer and MAC, now
expects sales this year will rise
six per cent to seven per cent on
a constant currency basis,
compared with an earlier
forecast of a range of six per cent
to eight per cent. Still, Estee
Lauder reported a higher than
expected quarterly profit, with
net profit of $299.5m, or 76
cents a share, in the first quarter,
ended 30 September, compared
with $278.6m, or 70 cents a
share, a year earlier.
Kellogg boosted by
demand for Pringles
KELLOGG reported higher-than-
expected quarterly profit
yesterday as strong
performance in its Pringles
business offset costs related to
a recall last month of Mini-
Wheats.
The worlds largest cereal maker
reported net income of $296m,
or 82 cents per share, for the
third quarter, compared with
$290m, or 80 cents per share, a
year earlier.
The results included four cents
per share in integration costs
related to the acquisition of
Pringles.
Analysts on average were
expecting 80 cents per share.
Madagascar 3 lifts
Dreamworks income
DREAMWORKS Animation SKG
last night posted a higher
quarterly profit, helped by the
success of its latest movie
Madagascar 3: Europes Most
Wanted in international
markets.
Net income rose to $24.4m, or
29 cents per share, in the third
quarter, from $19.7m, or 23
cents per share, a year earlier.
Revenue rose 16 per cent to
$186.3m.
The company said Madagascar
3, which was released in June,
raked in nearly $720m
worldwide, of which 70 per
cent was from international
markets.
RESTAURANT Group, the owner of
the Garfunkels and Frankie &
Bennys chains, yesterday said sales
bounced back in the third quarter
after a quiet summer, driven by an
uptick in consumer spending.
Reporting a 3.9 per cent rise in like-
for-like sales in the first nine months
of the year, chief executive Andrew
Page said growth accelerated to four
per cent in September and October
after a more difficult patch around
the time of the Olympics.
London was much quieter than
most people had anticipated and
has bounced back very strongly, he
said, adding that all parts of the UK
were performing well.
That growth was a combination of
selling more meals but also, we are
seeing people spend more money,
which is positive, he said.
Total sales in the nine months rose
8.25 per cent.
Restaurant Group owns 410 outlets
in the UK in out-of-town locations
The Restaurant
Group boosted
as sales surge
BY KASMIRA JEFFORD
such as retail parks, where it benefits
from being next to multiplex cinemas
and other leisure venues.
Wayne Brown, analyst at Canaccord
Genuity said: This is an exceptionally
strong result considering the tough
comparative of 2.5 per cent and the
fact cinema admissions have been
poor in the quarter.
The group, which also owns
Garfunkels, has opened 16 restau-
rant this year and aims to open 26 to
29 by the end of 2012. This includes its
new US-style chain Coast-to-Coast,
which Page said was trading well.
WHATS THE RECIPE FOR THE
RESTAURANT GROUPS SUCCESS?
Interviews by William Campbell
Outlets that come under the Restaurant Group
meet their clients wants and needs very well.
People do not go into Frankie and Bennys looking for sil-
ver spoon service but nonetheless they are served good
food at good prices. The fact that the restaurants are in
premium locations means they are easily accessible.
These views are those of the individuals above andnot necessarily those of their company
NEVIL WHARTON
DOW JONES

The reason why I think the Restaurant Group

does so well is due to the locations of their
many outlets. Taking for example Garfunkels, they are
situated in prime tourist locations across London and the
American diner concept will always work. The wide
variety of food offered also appeals to the masses.
MATTHEW EAST
LAWRENCE GRAHAM

CITYVIEWS
FRIDAY 2 NOVEMBER 2012
16
NEWS
cityam.com
FIFTY per cent of the 140m 70 Mark Lane development is already committed to tenants,
Mitsui Fudosan and Stanhope announced yesterday, two years before the development is
due to be completed. Miller will occupy the first six floors of the building, taking up about
85,000 square feet, leaving 84,000 square feet open for other firms.
STANHOPE AND MITSUI LEASE 70 MARK LANE
Restaurant Group PLC
31 Oct 25Oct 26Oct 29Oct 30Oct
374
376
378
382
384
380
386 p
381.95
1Nov
Sony slashes video game sales
goals as Sharp warns on future
JAPANESE electronics
powerhouse Sony cut sales
forecasts for its key products
yesterday, a worrying sign for the
company as it focuses on video
gaming under new chief
executive Kazuo Hirai.
Sony said it expects to sell 10m
of its handheld PSP and Vita
devices in the current financial
year, down from the previous
prediction of 12m. It also slashed
forecasts for its TV sets and
handheld cameras. Sony has
extensively marketed its Vita
handheld console, which was
BY JAMES TITCOMB
launched earlier this year, but
sales have disappointed as more
people turn to smartphones for
gaming on the move.
Hirai vowed to centre Sony
around the video gaming arm
after he took the helm from
Welshman Howard Stringer
earlier this year. The company has
recently launched revamped
versions of the PlayStation 3
console and is developing the
next generation PlayStation.
Sonys forecast cut came as the
company announced its seventh-
straight quarterly loss of 15.5bn
yen (120m) for the quarter to
October, although this was almost
half the loss during the same
period last year. Revenue was 1.6
trillion yen, marginally up on last
year.
Shares in the Tokyo-based
company fell four per cent.
Sonys compatriot Sharp
yesterday warned about its
future as a company as it
predicted a 450bn yen loss for
the financial year. Sharp is in
circumstances in which material
doubt about its assumed going
concern is found, the company
said.
Chief executive Takashi Okuda
said: I cant say we are now a
company with that vitality.
IN BRIEF
Amplats extends work offer
nAnglo American Platinum yesterday
extended the return to work offer for
the 12,000 miners it dismissed last
month, to try and restart production
at its industrial action-hit South
African operations. Amplats is losing
an average of 3,694 ounces of
platinum each day due to the strike,
and to date 141,640 ounces of the
precious metal have been lost.
EXXON Mobil, the worlds largest
publicly traded oil company,
reported a quarterly profit yesterday
that topped expectations, as higher
margins from its refining arm
countered a 7.5 per cent decline in
oil and gas output.
Exxon and other global oil
producers are buying oil and gas
assets in North America as they
struggle to raise production in a
sector where vast energy resources
are tightly controlled by countries
like Brazil. The companys third-
quarter earnings fell to $9.57bn
(5.9bn), or $2.09 per share, from
$10.33bn, or $2.13 per share, a year
earlier. Analysts had expected a
profit of $1.95 per share. Revenue fell
eight per cent to $115.7bn.
Exxon Mobils
profit falls after
production dips
BY CITY A.M. REPORTER
INDUSTRIAL material supplier
Cookson Group yesterday said it will
separate its performance materials
division from its engineered ceram-
ics and precious metals processing
division following a strategic review
of the business.
The performance materials divi-
sion which supplies materials and
chemicals to construction markets
will form a new London-listed spe-
ciality chemicals company called
Alent. The rest of the Cookson
Group, made up of principally the
engineered ceramics division, will be
renamed Vesuvius.
Alent and Vesuvius, which would
likely be FTSE 250 companies, will
have separate strategic, capital and
economic characteristics as well as
different management teams.
Cookson splits
divisions into
two listed firms
BY CATHY ADAMS
Steve Corbett, current chief execu-
tive of the performance materials
division will become chief executive
at Alent, and Francois Wanecq, chief
executive of the engineered ceramics
division will head up Vesuvius.
Shareholders in Cookson will
receive one share in each of the new
two entities for each existing share
they hold, Cookson said yesterday.
INVESTMENT bank Rothschild acted as the
nancial adviser to Cookson, Alent and
Vesuvius on this deal. Robert Leito, head of
UK investment banking and managing
director Ravi Gupta are heading up the
team, working alongside colleagues Nigel
Himsworth and Charles Montgomerie.
Guptas experience spans the engineering,
manufacturing and service sectors. In the
past year, he has worked on the $360m sale
of Rexams plastics business, while last year
both Gupta and Leito had roles in the
Rolls-Royce acquisition of German engine
maker Tognum. Gupta is part of turnaround
investor Melroses long-time advisory team,
and has worked on a number of transac-
tions on its behalf including the $590m sale
of Dynacast. Leito has been involved in
over 150 high-prole M&A deals, including
Cairns deal with Vedanta last year. He also
worked on the Cairn India IPO in 2007.
Bank of America Merrill Lynch, JP Morgan
Cazenove and UBS also have roles in the
demerger.
ADVISERS ROTHSCHILD
ROBERT LEITAO
AND RAVI GUPTA
ROTHSCHILD
Glencore wary despite
a strong third quarter
COMMODITIES trader Glencore
yesterday warned of a cautious
outlook, as it reported a strong
performance in its marketing
division.
Glencore, currently in the final
throes of a $56bn (35bn) mega
merger with mining giant Xstrata,
said in a trading statement that
overall performance in the third
quarter was good, despite weaker
commodity prices and tough
economic conditions that will not
improve in the short term.
It said of its marketing or
trading division, which
accounted for just over a third of
profit last year, that the outlook
for the remainder of the year
remained positive, based on
BY CATHY ADAMS
generally accommodating
supply/demand conditions.
In its industrial arm, production
at its Kazzinc division in which
Glencore upped its stake to 69.91
per cent last month rose 18 per
cent year on year.
Shares closed up 0.38 per cent
yesterday at 344.95p.
Current Cookson chief Steve Corbett will head up performance materials division Alent
Cookson Group PLC
31 Oct 25Oct 26Oct 29Oct 30Oct
575
580
590
600
595
585
610
605
p
590.68
1Nov
KURDISTAN-focused Genel Energy
yesterday upped its production
guidance for 2012 to 45,000 barrels
of oil per day, following the
resumption of export sales in
August.
The company, run by former BP
chief executive Tony Hayward,
expects production from its oilfields
Taq Taq and Tawke to reach 90,000
and 75,000 barrels of oil a day.
Despite the increased production
guidance, sales revenues guidance
for the full year has been left
unchanged.
Genel added it will pursue further
opportunities in Kurdistan and look
at further acquisitions of high
impact exploration assets in the
Middle East and Africa.
Genel ups oil
output target
BY CATHY ADAMS
FRIDAY 2 NOVEMBER 2012
17
NEWS
cityam.com
Asset
Finance
A special report
distributed within
City A.M. on Monday
No. 3 / Nov. 12
Distributed within City A.M.
AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET
John Bevandispells some of the manymyths
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C
I
T
Y
A
M
C
A
R
E
E
R
S
.
c
o
m
Coal of Africa production falls
nProduction at Coal of Africa fell in
the three months to September, down
to 1.27bn tonnes of coal from 1.32bn
tonnes over the previous quarter, it
reported yesterday. Chief executive
John Wallington said that the South
African coal mining firm would remain
focused on implementing cost control
measures to reduce operating losses.
Avocet Mining losses narrow
nGold miner Avocet Mining yesterday
said its losses narrowed in the three
months to September, down from
33.5m to 323,000 year-on-year.
Gold production fell slightly year on
year, to 33,067 ounces from 33,256
over the same period in 2011. Full year
gold production guidance has been
maintained at between 135,000 and
140,000 ounces.
Glencore International PLC
31 Oct 25Oct 26Oct 29Oct 30Oct
338
340
344
346
342
348 p
344.95
1Nov
SHARES in defence equipment
firm Chemring fell to a six-year
low yesterday as it cut its full-year
profit guidance.
The firm, which is currently in
talks with US private equity group
Carlyle over a takeover bid,
reduced its expectations for
earnings per share by 13 pence, for
the year to October.
Delays to a contract supplying
vehicle-based mortar systems in
the Middle East as well as delays to
an aircraft order weighed on
profits. Technical issues with one
of its products will also hurt full-
year numbers for Chemring,
which issued a profit warning in
August.
Carlyle, which first expressed
Chemring shares hit six-year
low as it slashes its forecast
BY CATHY ADAMS interest in Chemring in August,
has until 9 November to table an
offer for the British company.
Last month, Chemring replaced
chief executive David Price with
Mark Papworth, a former
executive at John Wood Group,
with immediate effect, to better
prepare the company for its
future.
Roger Johnston, analyst at
Edison Investment Research, said
yesterday: With the deadline for
Carlyles bid rapidly approaching
yet again, shareholders face the
decision either to accept a likely
ever-decreasing offer from Carlyle
or put their faith in the new chief
executive and sit tight for a
potential turnaround.
Chemring shares closed down
16.61 per cent yesterday at 262p.
FRIDAY 2 NOVEMBER 2012
18
Consumer and
jobs data sees
equities leap
T
HE S&P 500 scored its best day
in seven weeks yesterday as
bullish consumer confidence
and private-sector jobs data gave
investors reason to cheer following
superstorm Sandys devastating
sweep through the US Northeast.
Technology and materials sector
shares led the advance in a day of
mostly average volume. About 6.7bn
shares changed hands on the New
York Stock Exchange, Nasdaq and
NYSE MKT, compared with the
average daily closing volume of 6.5bn
for the year to date. The S&P 500
technology index rose 1.8 per cent,
while the PHLX semiconductor index
surged 3.3 per cent. The S&P
materials index shot up two per cent.
Volume had been expected to jump
after Sandy forced a historic market
closure earlier in the week but
traders said participation remained
light to normal.
Data from payrolls processor ADP
showed US companies added 158,000
workers in October the fastest pace
in eight months. In another
encouraging sign, US consumer
confidence jumped in October to its
highest in more than four years, the
Conference Board said
The Dow Jones industrial average
gained 136.16 points, or 1.04 per
cent, to 13,232.62 at the close. The
Standard & Poors 500 Index shot up
15.43 points, or 1.09 per cent, to
finish at 1,427.59. This was the S&P
500s biggest daily percentage gain
since 13 September, when the
Federal Reserve unveiled its plan for
a third round of stimulus or
quantitative easing, known as QE3.
The Nasdaq Composite Index
jumped 42.83 points, or 1.44 per
cent, to close at 3,020.06.
B
RITAINS blue-chip index made its
biggest single session gain in four
weeks yesterday as a number of
firms posted solid results and
investors took on fresh bets at the start of
a new month.
The FTSE 100 index closed up 79.22
points at 5,861.92, a rise of 1.4 per cent,
the biggest gain since 1 October, with
banks alone adding nearly 20 points.
Lloyds Banking Group was the top
gainer in the index, rising 8 .2 perc ent
after results which revealed that the
banks exposure to bad debt had fallen,
helping bring up other banks such as
Barclays, which released disappointing
results in the previous session.
The FTSE ended October on a downbeat
note, losing 1.2 per cent during
Wednesdays trading, following a string
of gloomy earnings and outlooks from
firms such as BG Group, Barclays and
GlaxoSmithKline.
However, stocks recovered yesterday in
strong volumes of 140 per cent of the 90-
day average. Yesterdays session made it
the 10th first trading day of the month
this year out of 11 to have seen positive
for the FTSE.
Many firms gains reflected their
strong reports, above and beyond
improved fund flows. Telecoms firm BT
Group gained 6.8 per cent, despite
missing expectations for second-quarter
revenues, as traders pointed to
encoraging Ebitda, which was in-line,
and earnings, which were slightly ahead.
BSkyB also benefited from good results,
up 7.1 per cent in volume of three times
its 90-day average, as its first-quarter
earnings rose 16 per cent.
Strong corporate results cause the
sharpest FTSE jump for four weeks
BESTof theBROKERS
Barratt Developments PLC
26Oct 29Oct 30Oct 31Oct 1Nov
p 194
192
190
188
184
186
193.76
1 Nov
BARRATT
Goldman Sachs has cut
its recommendation on
the homebuilder to
neutral from buy
following recent rises in
its share price. It moved
its target price to 235p
from 210p.
DASHBOARD CITY
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
FTSE
26Oct 29Oct 30Oct 31Oct 1Nov
5,875
5,850
5,825
5,800
5,775
5,861.92
1 Nov
N Brown Group PLC
26Oct 29Oct 30Oct 31Oct 1Nov
p 342.50
340.00
337.50
335.00
330.00
327.50
325.00
332.50
339.70
1 Nov
N BROWN
Peel Hunt has raised its
target price for the
fashion and homewear
retailer to 375p from
340p, maintaining its
buy recommendation.
It cites the US trial and
UK store expansion.
WM Morrison Supermarkets PLC
26Oct 29Oct 30Oct 31Oct 1Nov
p 272
271
270
269
267
266
268
267.30
1 Nov
WM MORRISON
Seymour Pierce has
downgraded the grocer
from hold to reduce,
cutting its target price
from 300p to 250p as it
expects it to come under
further market pressure
from rivals at Christmas.
Baird
Jim Conniff has been appointed
managing director in the
investment banks industrial
team. He joins from Goldman
Sachs, where he was a senior
member of its industrial
banking team. Conniff was
previously a director at Baird.
Baker Tilly
David Whitlock has been appointed business
development director at the accountancy and advisory
firm. He was previously a managing director in RBSs
corporate banking division, and will now be responsible
for strengthening relationships within Baker Tillys
corporate business.
Barclays
Barclays has appointed two private bankers to its London
wealth management division. Mark Priestley joins as a
director from Coutts, where he has worked for 25 years.
Michael Foy joins as a private banker from Coutts, where
he was worked for 22 years, most recently as a client
partner in its executive client group.
Scottish Widows Investment Partnership
Martyn Gilbey has been appointed head of wholesale at
the fund management firm. He joins from Mirae Asset
Management, where he was UK managing director.
Gilbey has also held senior roles at Insight Investment
and Barclays.
Duncan Lawrie Private Bank
Nigel Gautrey has been appointed managing director of
the private banks Isle of Man division. Gautrey was
previously banking director at Duncan Lawrie. He started
his career in retail banking in the 1980s and has also held
roles at LLoyds TSB Offshore.
Gottex Fund Management
The asset management firm has appointed Marc Fisher as
head of marketing for Asia Pacific. He joins from FRM,
where he was responsible for its Asia-Pacific business
and a member of its management committee.
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
NEW YORK
REPORT
in association with
in association with
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
FRIDAY 2 NOVEMBER 2012
19
LONDONTIME
cityam.com
LONDONTIME
The most spectacular
timepieces of 2012: P.30
Win tickets to Londons
fine watch exhibition P.33
The whirlwind
in a watch
Tourbillons
revealed P.22
F
ELIX Baumgartner is sitting in a
Parisian hotel room having a wry
chuckle about the likelihood,
when plummeting out of space,
of your skin boiling a certainty in
the case of pressurised spacesuit
failure or blood pushing your eyes
out of their sockets a distinct
possibility if you get into a flat spin.
The doctor started telling me how
many ways I was going to die if some-
thing goes wrong. Above 16km the
water in your body starts boiling at
body temperature the good news is
that means youll die in 15 seconds
and you know it wont take longer, he
says with a grin.
We were talking a couple of weeks
before his supersonic hurtle from the
edge of space. If you were one of the 8
million people watching online as he
fell, youll know that he did indeed go
into a flat spin look up the footage
from the camera that was strapped to
his chest, and youll see just what a
desperate pickle he found himself in
for several seconds.
If surviving hurtling at such astro-
nomical G-forces in a pressurised
spacesuit and a helmet is no mean
feat, the Zenith watch Baumgartner
was wearing had no such protection,
strapped as it was to the outside of his
spacesuit. G-forces, extreme tempera-
tures and general rough and tumble
let alone supersonic tumble are real-
ly not friendly things for mechanical
watches.
Top marks, then, to the Zenith El
Primero Stratos Flyback Striking 10th
chronograph clearly it takes a watch
with a long name to make the grade
for such a long fall for coming
through with nary a scratch.
Baumgartners faultless two-footed
landing no doubt helped, but so did
the fact that this is one tough cook-
ie of a watch.
Inside is Zeniths legendary El
Primero movement, invented
in 1969 and still arguably
the greatest high-beat
chronograph movement
around. This particular
variation, the Striking
10th, means it can accu-
rately measure time
down to a 10th of a sec-
ond, while the flyback
function for repeated
stopwatch use without
resetting is a classic
attribute of aviation time-
pieces.
So why on Earth did
Baumgartner feel the need to
do this?
Its a challenge. If youre in
a sport like this, you want to
keep pushing the limit a little
bit. And if you keep pushing a
little bit for 20 years, this is the
result I guess.
Which means being the greatest
daredevil of our age and one with
a superb watch to match.
Timothy Barber
Last week, while London was
shrouded in fog, I found myself up
in the clean air and bright sunshine
of the Swiss Jura the
mountainous home of Swiss
watchmaking. Trace an arc
upwards from Geneva, as the Jura
mountains curve their way along
the French border towards Biel
Bienne 100 miles north east, and
you have whats known as Watch
Valley the cradle of Switzerlands
great industry.
In fact its a series of highland
valleys, lakes and villages, where
two centuries ago the farming
communities turned to
watchmaking to keep themselves in
pocket through the snowy winter
months.
Its still here that the great watch
houses are nearly all assembled.
You have the grand dames of
Geneva Patek Philippe, Vacheron
Constantin, Piaget and the big
hitters of the Valle de Joux, a
picture postcard lakeside area
thats home to Audemars Piguet,
Jaeger-LeCoultre and Blancpain.
Further along, Zenith, Corum,
Tissot, Cartier, TAG Heuer and
others are clustered in the towns
above Lake Neuchatel, before you
come to Longines and Omega in the
Biel Bienne region.
Great manufactories have grown
out of the tiny farmyard ateliers of
old, but visiting these places you
still get the wonderful sense of the
proud heritage thats tied up with
fine watchmaking, that most
anachronistic of luxuries in todays
high tech world. I spent time last
week in the workshops of Minerva,
a venerated maker of high-end
chronographs thats now owned by
Montblanc, and in the haute
horlogerie studios of Audemars
Piguet. In both places, craftspeople
still use old-fashioned techniques
to create some of the most
beautiful watches around look at
Alex Doaks piece on watch
decoration on page 27 to gaze at
the beautiful workings of one of
Minervas sensational movements
for Montblancs Villeret operation.
It produces just 250 watches a year.
Yes, watchmaking in the most
part is a far more mechanised
affair than it was, and rightfully so.
But in a fine watch youre still
buying into the skill, knowledge
and technical mastery not just of
an industry, but a region and a way
of life. That really is something
special.
Timothy Barber is the editor of London
Time and 0024 WatchWorld magazine
A fine watch is a connection to a sublime tradition
Left: Zenith El Primero
Stratos Flyback Striking
10th. 6,700 from
www.thewatchgallery.co.uk.
www.zenith-watches.com
FRIDAY 2 NOVEMBER 2012
LONDONTIME
cityam.com
21
LONDON
TIME
T
H
E
M
A
N
W
H
O
F
E
L
L
T
O
E
A
R
T
H
(and the watch he was wearing...)
TIMOTHY BARBER
I
F such a thing existed, a game of
watch Top Trumps would have a
number of horological functions
vying for best-card-in-the-pack
status. But because of its spellbinding
romance, youd struggle to trump the
tourbillon. For collectors of prestige
watches, its a complication thats in
a league of its own.
A tourbillon is a device that counters
the negative effects of gravity on a
watchs movement by housing the
escapement the oscillating mecha-
nism that regulates power from the
mainspring into intervals of time in
a constantly rotating cage. The name
translated means whirlwind, and
you need to see one in the metal to
fully experience its hypnotic draw.
You see, a tourbillon lives and
breathes in a way no other mechanism
does, because its always moving,
whirling away like a tiny vortex. Most
houses that make a tourbillon cut an
opening in the dial so you can see the
entire assembly making a complete
360-degree rotation every minute. To
look at, its pure watchmaking magic.
Not surprisingly, tourbillons are
incredibly complex, fiddly, time-con-
suming things to manufacture,
which means they can add on as
much as 50,000 to the price of a pres-
tige watch. Theyre made up of 70-80
Shne, agrees. Its fair to say that on
the wrist the tourbillon can leverage its
gravity compensating effect only to a
limited degree. But this doesnt lessen
the allure of its mechanism.
It may only be marginal, but because
of their anti-gravitational design, tour-
billons are more accurate than regular
mechanical watches. Patek Philippe
says its tourbillons are precise to -2/+1
seconds a day considerably better
than most watches.
Richard Mille, whose bullet-proof
tourbillon watches are worn by Rafael
Nadal on a tennis court and Felipe
Massa at the wheel of an F1 car, gives a
helpful explanation of the difference.
Many people are unaware that watch-
es have the worst chronometric
results when lying on their side, like
when you take your watch off at
night, he says. In this position, a
normal watch will gain several sec-
onds in a single night. For a tourbil-
lon there will be no effect at all. This
means that over days and weeks, a
tourbillon will be far superior in accu-
racy to any regular escapement, howev-
er well designed.
More than anything, a tourbillon is a
horological swipe card into an exclu-
sive club owning one shows you really
know your watches. Now sit back and
gaze into the whirlwind...
individual parts, yet weigh less than
half a gram.
But whats particularly extraordinary
about the tourbillon is that its still
made at all. It was originally patented
by Abraham-Louis Breguet in 1801.
Given that the tourbillon was designed
for use in pocket watches not wrist-
watches generally carried upright,
hence the downward gravitational
drag that would upset the consistency
of the escapements oscillations, and
therefore its accuracy it really should
be redundant by now. But its not.
Why? A tourbillon has status, says
Jerome Lambert, CEO of Jaeger-
LeCoultre. It reflects the wearers
quest for sophistication.
Wilhelm Schmid, CEO of A. Lange &
Robin Swithinbank unlocks secrets of haute horlogeries most beguiling feature
FRIDAY 2 NOVEMBER 2012
22
LONDONTIME
cityam.com
Jaeger-LeCoultre
Master Ultra Thin
Tourbillon
The sort of watch to
wear as you pen an
eight-figure deal.
Aside from being
filthy handsome,
its also jolly clever
its titanium
tourbillon carriage
weighs a feather-like
0.33 grams and sits in
an automatic
movement that comes
in at just 6.4mm thick.
46,300
www.jaegerlecoultre.com
Frederique Constant
Slim Line Tourbillon
Manufacture
Because of the
complexity of a
tourbillon, its rare
to find one priced
south of 40k.
Automatic, cased
in steel and 18-
carat rose gold,
and with the
addition of a
day/night indicator,
this is a lot of watch
for your money.
28,630
www.frederique-constant.com
Richard Mille
RM052 Tourbillon Skull
No, your eyes do not
deceive you. That is
indeed a skull, in
the middle of a
very expensive
watch. This has a
Grade 5 titanium
case perfected
through 255
separate machine
operations, and the
skull is more than a
brooding aesthetic
its jaws hold the
tourbillon cage in place.
356,000
www.richardmille.com
Vacheron Constantin
Patrimony Tradionnelle
14-day Tourbillon
This pink gold
timekeeper packs a
massive 14-day power
reserve under the hood.
That means that as
well as being highly
accurate, the watch
will run for 336 hours
once fully wound.
Thats a bit like being
able to drive your car
from London to Cape
Town on a single tank of
fuel. Incredible.
202,500
www.vacheron-constantin.com
Patek Philippe
Reference 5101J
Patek does tourbillons
the understated way,
squirrelling away the
intricacies of its
movements. Flip the
yellow gold, three-
tiered case over
though, and you get
an eyeful of it
stunning 10-day
tourbillon movement,
which has 72 parts
yet tips the scales at
a leaf-like 0.3 grams.
Price on request
www.patek.com
The magical mystery of
a tourbillon wristwatch
Above, the revealed
tourbillon escapement of
A. Lange & Sohnes Richard
Lange Tourbillon Pour le
Merite.
A. Lange & Sohne: Richard Lange
Tourbillon Pour le Merite
The dial marking the hours on this
regulateur piece has a retracting section
between 8 and 10 oclock, which pivots in
and out every six hours, revealing the
tourbillon mechanism. Its fuse-and-
chain transmission, a tiny motorbike-like
chain made of more than 700 parts, helps
deliver power with consistent torque.
130,500 (in pink gold)
www.alange-soehne.com
WHIRLWIND WONDERS
AT LAST months European
Watch of the Year awards,
hosted in London by 0024
WatchWorld magazine, the prize
for the best watch between 8,000
and 25,000 was awarded to a
brand most people will never have
heard of. Francois-Paul Journe,
whose Chronometre Souverain
took the gong, makes fewer than
800 watches a year, each of them
hand crafted in his Geneva atelier.
The only place in the UK to find FP
Journes watches is William & Son,
the Mayfair boutique that has over
the last few years been quietly
carving a niche for itself as a very
serious player in exclusive watches.
Were dealing with independent
watchmakers who are extremely
skilled and have small productions,
and were providing them with a
showcase in London, says founder
William Asprey. We try and
choose people who make
everything themselves, who are
passionate, put the time in on the
finishing, and show real creativity
on both the inside and the outside
of a watch. You cant do that if
youve got a lower end or higher
volume brand.
The latest to join the party is
Laurent Ferrier, the eponymous
company founded by Patek
Philippes former head of product
development. Ferrier deals in a
style that is even more understated
than his former employer, though
no less exquisite: a whisper of pure
class, rather than a roar. Ferrier
joins brands such as Romain
Gauthier and De Bethune on
William & Sons roster of brands
for purist collectors who prefer to
take the road less traveled.
Meanwhile, with Bremonts
recently opened shop round the
corner and Parmigiani opening
across the road (see below), Mount
Street is building its challenge to
Bond Streets high-end dominance.
With the latter clogged for new
business, expect more brands to
join the fray.
10 Mount St, W1K 2TY
www.williamandson.con Watches by Laurent Ferrier
FRIDAY 2 NOVEMBER 2012
24
LONDONTIME BOUTIQUE NEWS
cityam.com
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William Asprey, founder of William & Son
A LITTLE further up Mount
Street from William & Son,
across the road from Scotts restau-
rant, Parmigiani Fleurier is shortly to
open its debut London boutique. As
such, its the first high-end Swiss
brand to jump ship from the Bond
Street party and choose Mount St as
its natural London residence.
Parmigiani, for those unfamiliar
with the brand, was founded in 1976
by Michel Parmigiani, a prodigious
watchmaker with a speciality in
restoring ultra-complicated vintage
clocks and watches.
Parmigiani to
open its debut
London shop
He still oversees the show, and the
brand has blossomed, putting out
watches in the same price points as
Patek Philippe or Audemars Piguet,
but suffused with a different, slightly
more eccentric, sense of character
and style. Its most famous for the
driving watches it has produced for
the Bugatti Veyron.
The London boutique promises to
be a highly luxurious affair, and one
that will have two watchmakers pres-
ent in the shop, working under the
noses of visitors.
www.parmigiani.com
IWCs Ingenieur range of watches are high-spec,
highly engineered (as youd expect from the
name) pieces that are perhaps the ultimate
tool watch: rugged, tough, adventurous,
modern. Heres one, though, thats
invested with a more old-fashioned
sensibility. Its called the IWC Vintage
Ingenieur 2012, and there are just
36 available in the UK, of a limited
run of 500 in total. Its priced at
5,950.
Vintage-in-style it may be, but
its thoroughly modern too, with
a first-rate, durable in-house
movement and sizeable 42.5mm
case. Its exclusive to the Watch
Gallery, which has outlets in
Fulham, Westfield and the
Selfridges Wonder Room.
www.thewatchgallery.co.uk
Exclusive IWC at Watch Gallery
Laurent Ferrier swells the ranks of collector
brands in Mount Streets niche luxury enclave
www.zenith-watches.com/feIixbaumgartner
FULHAM ROAD, LONDON
SELFRIDGES WONDER ROOM, OXFORD STREET, LONDON
WWW.THEWATCHGALLERY.CO.UK/ZENITH
EL PR!MERO STRATOS
the frst watch to break the sound barrier in
a near space environment
;7AA7=<B=B633253=4A>/13
The Manufacture Zenith congratuIates FeIix Baumgartner on having beaten
three records by jumping from the stratosphere during the Red BuII Stratos mission
AVIATION BR 03-92 AUTOMATIC - VINTAGE BR 126 SPORT CHRONOGRAPH
Bell & Ross UK +44 207 096 0878
information@bellross.com e-Boutique: www.bellross.com
HE fash-
ion for
putting a
transparent opening
in the back of a watch is
a relatively recent trend,
but a pleasing one. While
in the old days mechanisms
were hidden from sight in
any case, the sapphire crystal did-
nt exist that can now provide as
strong a casing as steel watch houses
have recently woken up to the fact that
a visible movement holds its own
allure. As a result, the intricate arts of
movement finishing, developed in the
days of prestige pocket watches, are
being taken to new heights.
The Geneva Seal a strict quality
standard for the highest-grade watches
has 12 technical criteria that mark a
locally-produced watch as a true speci-
men of Genevoise haute horlogerie. And
as many as five of these relate to how
the watchs movement is finished.
Many of these decorative calling
cards are now industry standards:
steel parts with polished edges,
drawn-out flanks, smoothed visi-
ble parts, polished or circular-
grained screw heads;
mirror-polished jewels with
polished sinks; interlocking
cogs chamfered above and
below with polished teeth;
polished pivots and pinions.
All of which combines to spec-
tacular effect when viewed
from the back. Or even from
the front; the woven strands of
Montblancs Villeret 1958 tour-
billon bridge, for example,
takes one man 40 hours to pol-
ish, but the resulting, dazzling
gleam makes all the difference.
SUPERHUMAN DILIGENCE
It may seem superficial, but in
todays era of automated manufac-
ture, finissage has become more
important than ever in imparting
value to a watch. The higher up the
prestige ranks you go, the more handi-
THE TOUCHES
work will have gone into a move-
ments finishing it may account for
more than a third of a watchs final
cost. With even the most revered hous-
es employing computer-controlled
electroerosion and multi-axis milling
to create the majority of their compo-
nents, exceptional hand finishing
using pastes, abrasives, wooden files
and superhuman diligence is now
essential to maintain their
reputation for hand-
craftsmanship.
As it happens,
such working
has sensible
technical
o r i -
gins.
A degree if finish is understandably
necessary to the snug fit and smooth
running of the wheels, pinions and
cams, while in the days before tightly
sealed cases, applying a textured pat-
tern such as Ctes de Genve striping
to flat surfaces ensured that invading
dust didnt slide easily into the bear-
FRIDAY 2 NOVEMBER 2012
27
LONDONTIME
cityam.com
ings and clog things up. But nearly all
varieties of polish are purely cosmetic;
beauty for beautys sake, and for the
sake of the sheer labour involved.
The question is, with automation
becoming better and more widely
accepted, would the traditions of hand
finishing continue if the artists subtle-
ty of touch could be replaced by a
machine? Its difficult to be sure, but
for now at least the finishers
future is safe, as there are
still polishing techniques
that a machine can-
not replicate: step
forward the
notoriously
t r i c k s y
intersec-
tion of two acute-angled edges or the
evenly contoured serpentine edge, as
seen on the main gearwheel sitting
proud of a Patek Philippe minute
repeater tourbillon.
ARTISTS
But most importantly, a machine is
not a human. These watches are per-
sonalised by artists, and thereby
endowed with tremendous emotional
value before youve even worn it, let
alone passed it onto your son. Thats as
integral a quality as any to an haute hor-
logerie watch.
2
3
5
Alex Doak dons his loupe and looks into the craft techniques that turn a watch movement into a work of art
1 Bevelling / chamfering
A particularly meticulous finish that
highlights the rim of watch parts by
eliminating the edge between the
surface and the flanks with a
wooden grinding wheel and
diamond paste. Angles are where
the true skill of the beveller can be
judged, so high-end watch
components feature more angles
than are strictly necessary. It takes
seven days to bring the bridges of
Girard Perregauxs Three Gold
Bridges to a flawless gleam,
keeping the chamfer width
constant and its edges parallel.
2 Ctes de Genve
Perfectly parallel Geneva waves
named after the waves lapping on
the shores of Lake Geneva, and
often applied manually with
rotating boxwood pads covered
with abrasive paste are the most
common form of finish. Like a
freshly mowed lawn, they form a
satisfying pattern of alternating
light and dark stripes, lending
coherence to disparate bridges
when aligned precisely.
3 Snailing
Rather like a hurricane viewed from
above, snail polishing can be
spotted as a shimmering vortex,
usually decorating a flat circular
surface like a winding barrel.
4 Perlage
A dimpled pattern of overlapping
circles, which is applied by dabbing
a spinning rubber tip onto flat
metal surfaces.
5 Black polishing
A technique that takes years to
master, black polish is so-called for
its extreme level of shine either
bright white or jet black, depending
on how you angle the of the
component. The result should be
totally scratch-free, even under
magnification.
4
LOOK AFTER YOUR WATCH
Mechanical watches need to be serviced.
Over time the oil inside the
movement degenerates if it
thickens it can slow down the
timekeeping, and if it thins it can
speed it up. To ensure the watch
continues to run reliably, you need
to maintain it at regular intervals to
prevent any damage. It varies from
watch to watch and brand to brand,
but between three and five years is
normal.
You can over-wind a manual winding watch.
With force you can essentially break
the end of the spring off the
retainers. With automatic (self-
winding) watches, however, there is a
clutch mechanism that prevents
over-winding.
Avoid changing the date between 8pm and 2am.
On watches with additional
functions, the closer the time is to
midnight the higher the chance of
damaging the movement, as a great
deal of functions are designed to
change when approaching or just
past midnight. Adjust the time
before adjusting the date as a
precaution.
When not wearing it, lay a watch on its back not its
side.
The hairspring essentially the crux
of the whole mechanism functions
best in horizontal position, therefore
keep the watch horizontal whenever
possible.
Invest in a watch winder.
If its an automatic watch, we
recommend getting a high quality
watch winder. Wed suggest Buben &
Zorweg as a maker of reliable, well-
engineered winders that can be
customised and calibrated for all
mechanical requirements. This keeps
the watch working while not being
worn, meaning you dont have to
reset it every time you choose to
wear it. Additionally, it keeps the
movement running, which is
important as it keeps the internal
parts lubricated. That will help
ensure the watch performs within
tolerance.
Harrods will be bringing its service and
after-sales bar to Salon QP. See page 33 for
event details. www.harrods.com
1
We get advice from Stephe Redpath Small, manager
of after sales at Harrods fine watch and jewellery
*

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MESURE ET DMESURE
*
TONDA 1950
Rose gold
Ultra-thin automatic movement
Herms alligator strap
Made in Switzerland
www.parmigiani.ch
LONDON HARRODS - ARIJE - ASPREY | YORK HARPERS | CHELTENHAM BEARDS
Bremont
The Victory Watch
The British watch
company is producing
a limited run of retro-
styled watches
containing wood and
copper from HMS
Victory, and an
innovative movement
with retrograde
seconds and date.
11,500 in steel.
www.bremont.com
Longines
Type A7 Avigation
Just released, this is a
reinterpretation of a
classic aviation watch
from the 1930s. It has
the movement and
display shifted round
by 40 degrees for
easy reading when
worn on the inside of
the wrist while flying.
3,090.
www.longines.com
W
HEN you think about it, a
mechanical wristwatch is
an inherently retro item
as one CEO of a Swiss brand
put it to me, were really still
producing steam locomotives in the
age of the bullet train. Despite the
mixture of modern and traditional
techniques that go into making
them parts cut by computer-
operated machines at microscopic
tolerances on the one hand, watches
hand-assembled, calibrated and
painstakingly finished on the other
they still run on the same
technological principles that have
governed timekeeping for hundreds
of years.
In fact, many of the most familiar
tropes found in watches are left over
remnants of functions that havent
been useful for decades. The
tachymeter markings around the
bezels of some watches, once essen-
tial for pilots to measure speed
based on elapsed time; similarly the
telemeter scales found on certain
chronographs, which could help
you work out the distance of an
event that could be seen and heard,
like a lightning strike or artillery
being fired; heck the chronograph
itself, a stopwatch in an age when
we dont need stopwatches. And
then theres that slide-rule bezel
encircling the dial of Breitlings
famous Navitimer chronographs
looks fantastic, never met a person
whos used it. Which is no reason at
all not to own it.
But accepting the essential retro-
ness of mechanical watches in both
form and function, one may as well
dive right in and celebrate the fact.
Theres something of a trend right
now for watches that very specifical-
ly hark back to past eras, that speak
from the same design language as
watches now found in the pages of
vintage auction catalogues. And
bearing in mind the associations of
the functions mentioned above,
theres a particular place for such
watches linked with a bit of old-fash-
ioned derring-do.
IWC AND ANTOINE DE SAINT-EXUPERY
Take the case of Antoine Marie Jean-
Baptiste Roger, Comte de Saint
Exupery aviation pioneer, author,
filmmaker, philosopher, inventor and
(naturally) poet, who having penned
that magical favourite The Little
Prince, taken New York society by
storm, earned the Legion dHonneur,
flown countless courageous missions
in war and peacetime and survived a
crash in the desert, finally died an
appropriately romantic death by dis-
appearing over the Mediterranean in
1944, presumed shot down.
An understandable figure for IWC, a
company with a particularly strong
history in pilots watches as a style
they still form a mainstay of IWCs
core collection to have celebrated
with a number of limited edition
pieces in the past few years. The latest
is, Id say, the strongest piece yet a
perfectly realised piece of boys own
timekeeping. A special take on the
brands Pilots Watch Chronograph, it
bears the stylings of the great age of
aviation and a first-class in-house
movement. Its a collectors item thats
in the vanguard of retro-themed
watches celebrating the exploits of the
past. Below are four more.
Theres a special kind of romance to wristwatches that capture the spirit of the past, writes Timothy Barber
FRIDAY 2 NOVEMBER 2012
cityam.com
29
LONDONTIME
TODAY
Omega
Speedmaster First
Omega in Space
Moonwatch
Classic Speedmaster
style from the brand
famous for its
moonlandings
associations. This
recreates the first
Omega worn in
space back in 1965.
3,400
www.omegawatches.com
Bell & Ross WW1
Monopusher
Bell & Ross, known for
its square chronos,
also has a line of
pieces inspired by
military aviation
watches of the WW1
era. The chronograph
here is started,
stopped and reset by
a single push button.
5,400
www.bellross.com
IWC
Pilots Watch
Chronograph Edition
Saint-Exupery
Limited edition of 500
watches in rose gold
with chronograph,
date display and in-
house movement.
25,500 from Harrods.
www.iwc.com
The finest timepieces mix form, function and
technical excellence to sparkling effect, as
these masterful new models prove.
FRIDAY 2 NOVEMBER 2012
30
LONDONTIME
cityam.com
DESIGNED
HERMES DRESSAGE
This year marks the centenary
of the French luxury house
producing watches.
Appropriately, its new flagship
piece is the first to contain a
dedicated, in-house movement
thanks to part-Hermes-owned
prestige manufactory Vaucher.
A simple, clean design thats
nevertheless brimming with
class and character.
6,100 (in steel) www.hermes.com
FABERGE ALEXEI PAVILION
Not just a maker of bejewelled
eggs, Faberge also produces
some wondrously stylish
watches. This womens watch is
the pick of the bunch: the
geometric decoration on its
silver-white painted dial is
inspired by the glass lattice-
work famous Pavilion Hall in
the Winter Palace, Saint
Petersburg.
18,066 www.faberge.com
PANERAI
RADIOMIR CALIFORNIA 3 DAYS
A California dial is a nice little
oddity in watch design, in
which half the numerals are
Roman and half Arabic, named
for a Californian company that
refurbished watches with this
dial in the 1930s. It lends a bit
of recherch cool to this
vintage-styled beauty.
5,600 www.panerai.com
SEIKO ASTRON GPS SOLAR
Sharing its name with Seikos
legendary first quartz watch,
this is also a game-changer. It
connects up to GPS satellites
orbiting Earth, meaning when
you step off a plane in a new
timezone it automatically
adjust to local time. Not only
that its solar powered, and
feather-light thanks to a high-
tech titanium case.
From 1,750 www.seiko.com
JAEGER-LECOULTRE MASTER
ULTRA THIN RESERVE DE MARCHE
The Swiss grande maisons
Master line of watches are put
through exceptionally stringent
tests, not that youd know it
from this quietly charismatic
piece. Its design is a lesson in
refined detail, while inside is a
high-spec JLC movement thats
just 4.9mm thick. A watch
thats as suave as it is svelte.
6,300 www.jaegerlecoultre.com
LONDONTIMEs top
LONDONTIME
31
FRIDAY 2 NOVEMBER 2012
FOR LIFE
CHANEL J12 GMT
The fashion uber-maisons
glossy J12 watches are intended
as unisex pieces but have thus
far been understandably more
popular with women than men.
This year Chanel has finally
come up with a matte version
of its lightweight, impervious
ceramic case for a more
masculine approach, including
this extra time zone version.
4,625 www.chanel.com
watch picks of 2012
PATEK PHILIPPE NAUTILUS
Pateks reference 5711 watch,
better known as the Nautilus, is
a modern classic that has
survived almost unchanged
since its appearance in the
1970s. So how can it have taken
so long to do a version with a
white dial? It was worth the
wait though, bringing new
clarity to that unmistakable,
perfectly balanced design.
17,970 www.patek.com
A. LANGE & SOHNE
DATOGRAPH UP/DOWN
Originally released in 1999, the
Datograph famous for that
huge date display, off-centre
subdials and spectacular
flyback movement is one of
the great watches of the
modern era, now upgraded
with a 60 hour power reserve,
bigger size and refined design.
59,800 www.alange-soehne.com
CARTIER TANK LOUIS CARTIER XL
SLIMLINE
Probably the most enduring
wristwatch design of all, the
Cartier Tank is an absolute
cornerstone of watch history
and this new, ultra-thin
interpretation one of the finest
ever. Embellished with
diamonds for female wearers or
just plain, its as adaptable as it
is ineffably chic.
Hermes.com
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c 1z cnzssGz cczL 1cs 1z s1zcx ez1 c 1z c1nz 177 zccL cvzz1.
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At last years Salon QP, Ronnie Wood unveiled his collaboration on a marine clock with UK brand Bremont
F
OR the fan of fine watches, its
not necessarily the easiest thing
to saunter into your nearest high-
end boutique and ask to be
shown the most spectacular
timepieces on earth, thank you very
much. Haute horlogerie is a world of
rare objects that can take weeks, even
months, to produce in extremely low
volumes via painstaking methods,
and they dont get put in front of just
anybody.
Except that once a year in London
they do. Salon QP, an event now in its
fourth year, is a public exhibition high-
lighting some of the best and most
exclusive watches and watch brands
around. Taking place next week from
Thursday to Saturday at the Saatchi
Gallery in Chelsea, its an opportunity
for enthusiasts to pore over the kind of
horological creations that normally
only ever get shown to millionaire pri-
vate collectors and journalists.
This years Salon QP is the biggest yet.
Watch brands bringing their finest
FRIDAY 2 NOVEMBER 2012
33
LONDONTIME
cityam.com
ANANTA. More than 30 years ago, a SEIKO engineer dreamed of a new kind of watch that
would reflect the true, continuous flow of time. 28 years of R&D later, Spring Drive was born,
the only watch in the world with hands that move with no tick and no noise, in perfect glide motion.
Today, the Spring Drive Chronograph sets a new standard in luxury chronographs, capturing the
exact elapsed time, not just to the nearest fraction, with an accuracy five times greater than any
mechanical chronometer. With a design inspired by Katana, the ancient Japanese art of sword making,
the perfect chronograph is no longer a dream. seiko-ananta.com
The worlds
finest watches
come to London
The Saatchi Gallery is to host a horological spectacular
wares not for sale, you understand,
just for show include Jaeger-
LeCoultre, Girard-Perregaux, Corum,
Chopard, Piaget, Zenith, Ulysse
Nardin, TAG Heuer and Bremont, as
well as more niche collector brands
like Christophe Claret, Kari
Voutilainen, MB&F and Gronefeld. As
well as the watches on display, the line-
up includes roundtable talks with
watchmakers, industry experts and
brand leaders; watchmaking master-
classes hosted by Jaeger-LeCoultre;
screenings of the film The
Watchmakers Apprentice, about the
late Dr George Daniels the greatest
watchmaker of the past century, who
died a year ago and his protg Roger
Smith; and the following watches
making rare public showings:
1. HARRY WINSTON OPUS 12 (pictured)
The fine jewellery house is also a force
in haute horlogerie, and its annual
Opus series of experimental collectors
pieces have become a celebrated plat-
form for the worlds best watchmak-
ers. This years Opus 12 features no
hands, but markers that rotate in posi-
tion to display the time see it to
believe it, and to understand it.
2. EXPERIMENT ZR012
A bizarre sci-fi gizmo of a
watch with a movement
inspired by the Wankel
rotary combustion engine. A
collaboration between avant-
garde brands MB&F and Urwerk,
this watch can normally only be
seen by private appointment in
Geneva.
3. TAG HEUER MIKROTOURBILLONS
One of the strangest and most intoxi-
cating mechanisms of recent times, a
chronograph that can measure to
1/100th of a second accuracy.
4. HARRODS UNIQUE PIECES
A year ago Harrods launched its really
rather remarkable Fine Watchmaking
room. To celebrate, brands including
Vacheron Constantin, Hublot, Breguet
and Zenith have created unique watch-
es, on display at Salon QP.
WIN TICKETS TO THE SALON QP VIP RECEPTION
City A.M. is giving away two tickets, worth 100 each, to next Thursday
evenings VIP reception to launch Salon QP. Simply go to
www.cityam.com/salonqp and answer the following question:
Which British watch brand has this year launched a
watch containing parts of HMS Victory?
Salon QP opening times:
Thursday 8 November, VIP Reception - 18:00-22:00 (tickets 100)
Friday 9 November, day session - 12:00-18:00 (tickets 20)
Friday 9 November, Vodka Cocktail Reception - 18:00-22:00 (tickets 30)
Saturday 10 November, day session - 12:00-18:00 (tickets 20)
Saatchi Gallery, Duke of York Square, SW3 4SQ
For tickets and information, visit www.salonqp.com or call 020 7428 2916
D
ISASTERS dont need leaders.
In the blacked out streets of
Manhattan this week, after
superstorm Sandy hit, traffic
is reportedly flowing despite
the absence of traffic lights, with
drivers behaving more cautiously
and coordinating with their fellow
road users. Its the sort of local,
spontaneous solution that tends to
follow catastrophic events.
Politicians, of course, want us to
think otherwise. On Monday
President Obama released a
photograph of himself monitoring
Sandy from the White House, before
touring the wreckage in New Jersey
on Wednesday. In response, mayor of
New York City Michael Bloomberg
sent a frank RSVP to the President.
A
S THE US presidential election
approaches, one issue has
been singularly absent from
the campaign. And its the
issue that worries US investors
the most. According to a recent survey
by Macro Risk Advisors, Americans are
increasingly concerned about a
looming fiscal cliff, over which the
US is set to hurtle on 2 January 2013.
The cliff in question is a $607bn
(375.6bn) combination of tax increas-
es and spending cuts, and is the result
of failure by the US Congress in 2011 to
reach agreement on how to reduce the
federal deficit. Without political inter-
vention, it will come into force just as
our New Year Eve hangovers start to
wear off. But how bad could it be?
According to the Tax Policy Center,
taxes would rise by more than $500bn
in 2013, as almost every tax cut enact-
ed since 2001 would expire. Average
marginal tax rates would rise by 5 per
cent on labour income, by 7 per cent
on capital gains, and by more than 20
per cent on dividends.
Almost every American will be hit.
Most will feel the impact of a rise in
cityam.com/forum
A tax rise of 1 per
cent of GDP would lead
to a 3 per cent reduction
in overall GDP
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.

36
FRIDAY 2 NOVEMBER 2012
TOM CLOUGHERTY
The fiscal cliff looms dangerously
over the US presidential campaign
payroll taxes and higher income tax
rates, with middle-income Americans
facing an average tax increase of
almost $2,000. Those on low incomes
will suffer the withdrawal of tax cred-
its, while high earners will face puni-
tive taxes on high-end healthcare plans
and a squeeze on their investments.
You dont have to agree with Barack
Obamas former adviser Christina
Romer who estimates that increasing
taxes by 1 per cent of GDP will lead to a
3 per cent reduction in GDP overall to
see that tax rises of this magnitude are
likely to be very damaging, especially
in the context of an anaemic and large-
ly jobless economic recovery. Some
wealth managers are already advising
investors to sell off equities to avoid
being hit by capital gains tax increases.
But even avoiding these tax rises
wouldnt leave the US with a rational
tax code. Policymakers desperately
need to comprehensively reform the
code, thereby eliminating a maze of
exemptions, deductions, and special
favours, while cutting rates across the
board. Unfortunately, thats not how
Washington works.
When it comes to the spending cuts,
the story is rather different. Here, at
least, the threat to US economic health
is vastly overstated. The lions share of
the scheduled cuts come courtesy of
the Budget Control Act of 2011, which
mandates automatic cuts of around
$109bn a year, starting on 2 January
2013 and continuing until 2021.
That sounds drastic, but it should be
put in context. The federal govern-
ment has run a trillion-dollar deficit
four years in row, and currently bor-
rows 30 cents of every dollar it spends.
It barely raises enough revenue to
cover non-discretionary spending on
things like pensions, debt interest pay-
ments, and healthcare for the poor
and elderly let alone national
defence (where America spends five
times as much as its nearest competi-
tor, China). Such profligacy may be
manageable now, with treasury yields
at record lows, but bond markets can
be capricious. The US is storing up
trouble for its future, even before you
consider the impact of inexorably ris-
ing healthcare costs and an ageing
population.
Moreover, these automatic cuts are
calculated against a baseline of project-
ed spending increases. As economist
Veronique de Rugy has pointed out,
after the initial cuts, spending will
grow by $1.65 trillion, as opposed to
$1.8 trillion, between 2012 and 2021.
Defense spending the target of half
the automatic cuts will initially fall
to 2007 levels (in inflation adjusted
terms) and then return to 2012 levels
by 2018. So while these cuts will
undoubtedly pose an administrative
challenge, they are hardly the public
sector apocalypse, or the open door to
Americas enemies, that their critics
would have you believe.
Indeed, the problem with the fiscal
cliff spending cuts is not that they go
too far, but that they dont go nearly
far enough. They entail no meaningful
reforms to unaffordable and outdated
entitlement programmes at home,
and they impose no serious restraint
on Americas trigger-happy interven-
tionism overseas. Theyre a start, but
thats all. In the long run, the US needs
to do the same thing as every other
Western state: radically re-think gov-
ernment from the ground-up and
question absolutely everything.
Fiscal cliff or no fiscal cliff, the 112th
US Congress has shown itself spectacu-
larly ill-suited to that task. One can
only hope its successor will do better.
Tom Clougherty is managing editor at
Reason Foundation, a think tank based in
Washington, D.C.
He told reporters wed love to have
him, but weve got lots to do.
Disaster response always begins at
a local level no one else can deal
with such sudden misfortune. The
good news is how effective such
bottom-up efforts tend to be. They
are accompanied not by the sort of
heedless panic that Hollywood and
politicians often lead us to expect,
but by effective solutions: it is
headless intelligence.
In the aftermath of 9/11, up to 1m
people were evacuated from
Manhattan by boat. Federal
authorities did not take charge until
day four it was an American
Dunkirk, a voluntarist flotilla of
yachts, ferries, tugs and whatever
other boats could be pressed into
service, all done with calm and
without oversight. When Florida was
hit by Hurricane Andrew in 1992,
local residents took to the streets of
their own accord to direct traffic,
while citizen convoys brought
supplies to small towns missed by
the official relief effort.
Businesses that trust a flatter
structure also cope well in disasters.
During Hurricane Katrina, Wal-
Marts chief executive Lee Scott freed
management at all levels to use best
judgement rather than wait for
approval. As a result, the retailer was
getting emergency supplies past
roadblocks and into New Orleans
within two days, a day before the
official federal response began.
Perhaps the most rigorous
academic study on this subject has
been carried out by George Mason
Universitys Mercatus Center in its
five-year project on the aftermath of
Hurricane Katrina, by scholars
including Virgil Storr and Emily
Chamlee-Wright. One paper
published by Peter Boettke, Chamlee-
Wright et al. in 2007 reveals how
the Mary Queen of Vietnam Catholic
Church in New Orleans East drove its
own rebuilding, despite city officials
announcing that this would be
impossible. It concludes: A
behemoth bureaucracy has proven to
be ineffective, whereas the pockets of
nimble entrepreneurial responses by
actors across the region have often
been more effective in rebuilding
lives and communities.
It is not that all help must come
from the bottom up, nor that there
is no role for local officials and
emergency services. But like most
things in life, disaster response
works best when it understands that,
even when the worst happens,
effective cooperation is human
nature.
Marc Sidwell is managing editor of
City A.M.
THE LONG
VIEW
MARC SIDWELL
When disaster strikes the most valuable response comes at a local level
MORNING UPDATE
A.M.
37
FRIDAY 2 NOVEMBER 2012
The Forum is open for you to take part. Got a sharp comment on
one of todays columns? Do you have another subject you want
to share your opinion on? We want to hear your views.
Email theforum@cityam.com or comment at cityam.com/forum
Cost of care
[Re: The real reasons why living costs are
still going up, yesterday]
As someone who has used childcare for the
last seven years, I feel qualified to comment
on Ryan Bournes article. There is a deep
irony in the sector although childcare itself
is very expensive (as Bourne says, due to a
great deal of red tape and market
distortion), the workers themselves are
often highly-qualified but paid very little.
And this discrepancy does working parents
no favour. There is often no clear reason to
go back to work after having a child.
According to the OECD, the average cost of
childcare in Britain is 27 per cent of income
for a couple earning double the UK average.
Its a strange state of affairs.
Dame Hyndman
Wind farms
[Re: After energy minister John Hayes
criticised UK wind farms, should Britain
build more?, yesterday]
Clare McNeills assertion that onshore wind
creates 9,000 jobs is foolish. These are
9,000 jobs bought by huge taxpayer
subsidy. And she fails to account for the
manufacturing jobs lost overseas due to the
overly high cost of producing electricity in
the UK.
Chris Emannuel
Wind farms are inefficient. They dont work
when theres no wind and they have to be
unplugged when theres too much. They
will only ever contribute a tiny proportion to
our national energy requirements.
David Peddy
I
T IS not surprising that the
government is trying to
encourage more employees to
take a significant stake in their
company. Firms with employee
shareholders tend to have higher
productivity, greater levels of
innovation and better employee
engagement. But while it is good
that the government is recognising
the benefits of the model, the
measures it proposed this week
dont go far enough to making
employee share-ownership an easy
option for companies to follow.
The governments proposals
involve creating an off-the-shelf
model for setting up an employee-
owned business, a partnership with
the Institute for Employee
Ownership to publicise this, and set-
ting up an implementation group
to act as a sounding board to minis-
ters. While these are all positive
moves, they mostly serve the pur-
pose of raising awareness.
Were missing practical solutions
to the question of why more busi-
nesses do not offer employees the
opportunity to become sharehold-
ers. And for those that already do,
the process is still too complex
involving copious amounts of man-
agement time.
While a variety of businesses may
be interested in adopting an
employee share ownership model,
tax legislation could be a deterrent
for many. If the government really
wants to encourage more business-
es to increase their number of
employee shareholders, there must
be more action aimed at simplifying
and streamlining the tax system.
For private companies, for exam-
ple, offering shares can be complex
and may involve protracted negotia-
tions about tax valuations. This can
sometimes lead to employees receiv-
ing unexpected tax bills many years
TOP TWEETS
The US election is still uncertain. 13 per cent
of likely voters are undecided, five days
before the polls open.
@pewresearch
Part of the reason for Comets troubles is the
economic climate a reminder that the
business environment is still choppy.
@ChukaUmunna
Comet is going into administration. Where
will I go now to test my products before by
buying them on Amazon?
@tomcooksey
Why does Nick Clegg not want to repatriate
powers from Brussels? I thought he was in
favour of accountability like Lords reform.
@TomCurragh
As Comet heads towards administration, is
the traditional UK high street on the ropes?
YES
The recent problems plaguing Comet have stemmed from the fact
that it considered the internet to be a threat. As a result, it was
sluggish in developing adequate online and mobile commerce
strategies, and lost its position in the highly competitive consumer
electronics market. Successive managements failed to grasp the
importance of this structural shift to online consumption by
consumers. Regardless of size, companies can no longer merely pay
lip service to online and mobile commerce, particularly because a
greater number of transactions are taking place through these
channels. And with the growth in popularity of tablet devices, this
will become increasingly more common. Comets move towards
administration is sad news for Britains high streets. But a keener eye
for online shopping would have helped Comet to maintain its
broader position in the marketplace.
Dan Wagner is chief executive and chairman of mPowa.
Dan Wagner
NO
Sally Moses
When Comet Battery Stores launched in 1933, shopping was a
functional affair, simply about getting access to everything required
to sustain body and home. But the retail arena has changed, and we
cant blame the internet exclusively for this. Consumer demand for
interactive and sociable experiences is growing: the act of shopping
has become the art of shopping and the high street offers the
perfect environment for this. Shops that are surviving are thriving
we need only look towards the Farmers Markets popping up across
the country to see that people respond well to high street
experiences that engage customers. The internet will never provide
this in the same way. Retailers need to find creative ways to cater for
our need for personal interaction, real existence, and self-validation:
providing shared experiences and a sense of community that we
identify with and want to go back to again and again.
Sally Moses is a consultant at The Gild.
RAPIDresponses
It takes more than
publicity to create
employee-owners
later. Putting in place an approved
plan to offer shares to employees
may also take months to agree with
HM Revenue and Customs. This may
change, however, if recommenda-
tions by the Office of Tax
Simplification are followed. But
until the tax and operational barri-
ers are dismantled, I doubt the gov-
ernment will see the levels of
employee share ownership it hopes
for.
The issue is confused further by
another idea that has recently come
out of the Department for Business,
Innovation and Skills the new
employee owner contract. This is
where an employee gives up some of
his or her employment rights, like
their right to unfair dismissal and
statutory redundancy pay, in return
for shares. But there are now con-
cerns that the two separate propos-
als could be confused. This creates
the risk that employee ownership in
general could become tainted by the
perception that it always includes a
loss of employment rights.
Simply raising awareness of the
employee ownership model will not
be enough. We need to see real
action aimed at simplifying the tax
system and improving the wider
operational environment.
Hopefully, this action will be provid-
ed by the chancellor in his
December Autumn Statement. Until
then, we need a little less conversa-
tion, and a little more action.
Carol Dempsey is an employment tax
partner at PwC.
CAROL DEMPSEY
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LIFE&STYLE
FRIDAY 2 NOVEMBER 2012
38
cityam.com
GOING OUT
For a pretty good time, watch...
FILM
THE MASTER
Cert 15 | By Alex Dymoke
hhhii
ICE AGE 4 ICE RINK
THE MAGICAL ICE KINGDOM
ZIPPOS CHRISTMAS CIRCUS & CIRQUE BERSERK
GIANT OBSERVATION WHEEL
OVER 100 FESTIVE RIDES & ATTRACTIONS
SANTA LAND SANTAS GROTTO
BAVARIAN VILLAGE LIVE MUSIC
RESTAURANTS, CAFS & BARS CHRISTMAS MARKETS
LONDONS SPECTACULAR CHRISTMAS DESTINATION
23 NOV 2012 - 6 JAN 2013
10AM TO 10PM DAILY(excluding Christmas Day)
On 23 Nov 2012 only - opens at 5pm
F
R
E
E

E
N
T
R
Y
!
Tickets for Ice Skating, Magical Ice Kingdom,
Circus and Giant Wheel are ON SALE NOW!
hydeparkwinterwonderland.com
P
AUL THOMAS Andersons
Scientology-inspired The Master
looks set to be a classic. The
cinematography is sumptuous, the
score is beautiful, and, of course, much
Serious Acting takes place. However, there
is an indecisiveness at the heart of The
Master.
It is 1950 and the 2nd world war has left
former seaman Freddie Quell (Joaquin
Phoenix) psychologically disturbed, and
with a taste for drink. He spends his time
making absurdly strong moonshine from
industrial liquids. One day, after falling
asleep drunk, he wakes up on the boat of
Lancaster Dodd (Philip Seymour Hoffman).
Dodd invites Quell to sail with him on his
voyage in the company of various other
people who are dedicated to The Cause,
the quasi-religious organization that Dodd
leads. Quell takes up the offer and the two
begin a strange, almost father/son rela-
tionship.
While the performances are excellent,
there is no real development in either
main character and no resolution in their
relationship, and to attribute this
vagueness to Andersons poetic vision
seems overly generous. There is not much
of a sense of how Dodd works his theories
on those who surround him. As a
character he is eccentric, intriguing, but
not especially commanding or
charismatic. There is no real sense of the
power he wields. Master connotes
dominion and guidance, but his
command never seems total and his
followers do not appear brainwashed. In
a way, it is disappointing for something as
darkly secretive as
Scientology to be
portrayed as banal. There
is an assumption that any
The Master is a trick sadly missed
Joaquin Phoenix puts in a good shift but The Masters point remains elusive
AFTER TWOfilms and six seasons of Sex
and the City, the combination of raunchy
dialogue, sex toys and gay best friends is
no longer a shocking or original way to
depict the lives of professional women in
their thirties. For a Good Time, Call
manages to be both eye-rollingly
formulaic and wildly implausible.
However, thanks to two strong central
performances from Lauren Miller (who
also co-wrote the script with Katie
Naylon) and Ari Graynor, it is just about
endurable.
The film opens with a passionless,
awkward sex scene between Lauren and
her boyfriend. Youre sexy, she musters,
prompting a perfunctory youre sexy
too from her lawyer boyfriend she is
not well versed in the language of sex.
Shortly afterwards, her boyfriend ends
the relationship, citing their dull sex life
as the main reason for his dissatisfaction.
She is forced to leave the flat that they
share and has no choice but to move in
with the sexually liberated Katie (Gaynor),
an old enemy from college who
desperately needs a roommate.
It becomes clear that Katie is
supplementing her income by working as
a phone-sex operator. Despite Laurens
initial disapproval, after losing her job
she gets in on the act too. At first she just
takes on the role of managing Katies
business. But before long she has taken
up the role of operator herself, inviting
callers to put it anywhere yes, even
there.
Occasionally the camera cuts away to
the man masturbating on the other end of
the line. This allows Miller and Naylon to
incorporate cameos from Kevin Smith,
Ken Marino and Millers husband, Seth
Rogan. Some of these are funny, some are
not all are unrealistic. Rogan, for
example, is an aircraft pilot in full
uniform pleasuring himself over the
phone in the toilet before lift off.
The first 20 minutes of FGTC are
totally devoid of laughs. But after the girls
move in together and Gaynor gets more
screen-time, the whole thing livens up
considerably. They have excellent
chemistry and what the film lacks in
laughs and originality it makes up for with
the engaging portrayal of their friendship.
FILM
FOR A GOOD TIME, CALL...
Cert 18 | By Alex Dymoke
hhhii
The chemistry
between Lauren
Miller (left) and Ari
Gaynor keeps this
movie on track
treatment of religious cults especially
one favoured by the rich and powerful
like Scientology will be satirical in some
way. Many will go and see The Master
expecting (and desiring) an exploration of
cult and the dangerous power that
charismatic individuals can have over
vulnerable individuals. Instead, this is a
film about a single relationship.
Dodd and Quell are two one-offs. There is
no wider moral to be gleaned from their
relationship because the personality and
circumstance of each man is too unique.
Both are vulnerable in their own way. Yes,
Quell is to some extent dependent on the
Master, but it becomes clear that the
Master is dependent on Quell, too. Only
someone as vulnerable and unstable as
Quell can provide the kind of loyalty that
Dodd needs a loyalty that is truly unwa-
vering. This is quite interesting, but both
characters come across as remote.
Phoenix emotes but somehow remains
enigmatic from start to finish. In their
final showdown, it is not clear what
either wants from the relationship, so it is
impossible to gauge what is at stake.
In basing his story on Scientology but
refusing to engage with it morally or polit-
ically, Anderson is angling for a more per-
sonal story. However, this story only ever
seems partially imagined. There Will Be
Blood may have confirmed Paul Thomas
Anderson himself is a master but it is
important to remember that he is not
infallible.
FILM
RUST & BONE
Cert 15 | By Steve Dinneen
hhhhi
An emotionally
bruising but
satisfying yarn
RUST & BONE is a funny old yarn. Try
explaining the concept and it sounds
utterly ridiculous. Here goes: a sexy
whale trainer starts an ambiguous
relationship with a vagrant bare-
knuckle fighter after she loses her
legs in a freak orca-related accident.
But where the premise is fanciful,
Jacques Audiards film is grounded
in a crushing, relentless realism. It
follows the general trajectory of:
something nice happens; something
utterly, unspeakably awful happens;
something nice happens; something
even more bind-bendingly terrible
happens, until youre as dizzy as the
central character after a particularly
brutal pummelling (of which there
are many).
The whole thing is kept in check by
outstanding performances by the
central characters. Marion Cotillard
(pictured) is superb as the whale
trainer grieving the loss of her legs
(and the combination of prosthetics
and CGI used to hide her real legs is
truly astonishing). Matthias
Schoenaerts is equally impressive as
overgrown manchild Ali, a violent,
abusive lout who somehow
manages to be rather
charming.
Expect an
emotionally
bruising
experience it
feels longer than
its 122 minutes but
one that leaves you
feeling satisfied.
39
TV & GAMES
cityam.com
T
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BBC1
SKY SPORTS 1
7pmPremier League Preview
7.30pmLive Football League
10pmThe Fantasy Football Club
11pmPremier League Preview
11.30pmGreat Matches of
European Football 12amFootball
League 1amThe Fantasy Football
Club 2amPremier League Preview
2.30amGreat Matches of
European Football 3am-6amLive
World Golf Championship
SKY SPORTS 2
6.30pmLive Masters Tennis
10pmAmericas Cup Discovered
10.30pmRingside 11.30pm
World Golf Championship 1.30am
Ringside 2.30amAmericas Cup
Discovered 3amTrans World
Sport 4amThe Fantasy Football
Club 5amPremier League Preview
5.30am-6amGreat Matches of
European Football
SKY SPORTS 3
7pmTight Lines 8pmWorld Golf
Championship 10pmWWE: Late
Night Smackdown 12amWWE:
Late Night Bottom Line 1am
Tight Lines 2amRacemax 3am
Elite League Ice Hockey 4am
Tight Lines 5amThrillseekers
5.30am-6amAmericas Cup
Discovered
BRITISH EUROSPORT
8pmLive Boxing 10pmStrongest
Man 10.30pmMotoGP
12am-1amTen Pin Bowling
ESPN
7pmLive FA Cup Football:
Cambridge City v Milton Keynes
Dons (Kick-off 7.30pm). 10pmThe
World According to Lance 11pm
ESPN FC Press Pass 11.30pm
ESPN Kicks: Serie A 11.45pmUFC
Primetime: St-Pierre v Condit
12.15amBundesliga 2amESPN
FC Press Pass 2.30amLive Major
League Soccer 5amSerie A
Review5.30am-6amPremier
League Preview
SKY LIVING
7pmCriminal Minds 8pmShow
Me Your Wardrobe 8.30pm
Nothing to Declare 9pmNikita
10pmCriminal Minds 11pmBones
12amSun, Sea and A&E 1am
Criminal Minds 1.50am
Supernatural 2.40amBones
4.20amMedium5.10am-6am
Passport Patrol
BBC THREE
7pmMerlin 7.45pmDoctor Who
8.30pmWorlds Craziest Fools
9pmUnzipped 9.45pmRussell
Howards Good News Extra
10.30pmEastEnders 11pmFamily
Guy 11.45pmAmerican Dad!
12.30amUnzipped 1.15amRussell
Howards Good News Extra 2am
Cuckoo 2.30amWorlds Craziest
Fools 3am-4amUnsafe Sex in the
City
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmFILMMarley
and Me 2008. 10.20pmFILM
Predator 2 1990. 12.35amThe
Big Bang Theory 1.30amMisfits
2.30amTool Academy: Boyfriends
Behaving Badly 3.25amBalls of
Steel Australia 4.15amHow I Met
Your Mother 4.40amScrubs
5.05am-6am90210
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmIce Road Truckers
9pmFull Metal Jousting 10pm
Top Shot 11pmStorage Wars
11.30pmPawn Stars 12amFull
Metal Jousting 1amTop Shot
2amAmerican Pickers 3amAx
Men 4amSwamp People 5am
Pawn Stars 5.30am-6am
American Restoration
DISCOVERY
7pmFifth Gear 8pmFast n Loud
9pmAuction Hunters 10pm
Wheeler Dealers 11pmThe Devils
Ride 12amDeadliest Catch 1am
Wheeler Dealers 2amAmerican
Guns 3amAuction Hunters
3.50amWheeler Dealers 4.40am
Discovery Atlas: Italy Revealed
5.30am-6amMeerkat Manor
DISCOVERY HOME &
HEALTH
7pmDr Oz 8pmSecretly
Pregnant 9pmI Didnt Know I
Was Pregnant 10pmSupernanny
US 11pmEmergency 12amI
Didnt Know I Was Pregnant 1am
Wanted Down Under 2am
Supernanny US 3amEmergency
4amA Baby Story 5am-6am
Birth Days
SKY1
7.30pmThe Middle 8pmModern
Family 8.30pmSpy 9pmTrollied
9.30pmDont Sit in the Front Row
10pmA League of Their Own
11pmAn Idiot Abroad 2 12am
Brit Cops: Frontline Crime UK 1am
Road Wars 4.10amCrash Test
Dummies 5.05am-6amDont
Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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I
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&
C
A
B
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6pmBBC News 6.30pmBBC
London News 7pmThe One Show
7.30pmNigel Slaters Dish of the
Day: BBC News 8pmEastEnders
8.30pmMiranda
9pmHave I Got News for You
9.30pmCHOICE Me and Mrs
Jones
10pmBBC News 10.25pm
Regional News 10.35pmThe
Graham Norton Show11.20pmThe
National Lottery Friday Night
Draws 11.30pmWould I Lie to
You? 12amEastEnders 2am
Weatherview2.05amSign Zone:
Hairy Dieters: How to Love Food
and Lose Weight 3.05amSign
Zone: Question Time 4.05am-6am
BBC News
6pmEggheads
6.30pmStrictly Come Dancing
It Takes Two
7pmGreat British Food
Revival
7.30pmCoast
8pmGardeners World
8.30pmAutumnwatch 2012
9.30pmAutumnwatch
Unsprung
10pmQI
10.30pmNewsnight
11pmThe Review Show11.45pm
Weather 11.50pmLater with Jools
Holland 12.55amFILMHalloween
III: Season of the Witch: 1982.
2.25amBBC News 4am-6amClose
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmIsland Hospital
8.30pmCoronation Street
9pmJonathan & Charlotte
10pmITV News at Ten
10.30pmLondon News
10.35pmFILMPublic
Enemies: Fact-based crime
drama, starring Johnny Depp
and Christian Bale. 2009.
1.05amJackpot247; ITV News
Headlines 3amFILMBefore
Sunset: 2004. 4.20am-5.30am
ITV Nightscreen
6pmThe Simpsons: 6.30pm
Hollyoaks: 7pmChannel 4 News
7.30pmUnreported World
7.55pm4thought.tv
8pmCHOICE Baggage
9pmDerren Brown:
Apocalypse
10pmAlan Carr: Chatty Man
11.05pmFriday Night Dinner
11.35pmMusic on 4: Mercury Prize
Awards Show12.55amRandom
Acts 1amComedy World Cup
1.55amMy Name Is Earl 2.20am
Bobs Burgers 2.40amAllen
Gregory 3.05amCharlies Angels
3.45am90210 4.25amDeal or No
Deal: Show Me the Mummy
5.20am-6.05amCountdown
6pmHome and Away
6.30pm5 News at 6.30
7pmBomber Boys: Revealed:
5 News Update
8pmEddie Stobart: Trucks and
Trailers: 5 News at 9
9pmCHOICE The Mentalist:
10pmFILMA Perfect Murder:
Thriller remake, starring
Michael Douglas. 1998.
12.15amSuperCasino: Live
interactive gaming.
3.55amMotorsport Mundial
4.20amHouse Doctor 4.45am
Michaelas Wild Challenge 5.10am
Wildlife SOS 5.35am-6amNicks
Quest
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
10 6 12
45
9 19
30 4
20 35
9 7 15
15 24
13 11
27 3
45
11 16 9
16
26
10
5
18
6
12
34
29
33
8
11
14
16
14
32
13
8
28
17
14
24
7
ACROSS
1 Helix (6)
6 Breadwinner (6)
8 Tree such as the
cedar or larch (7)
9 Heavenly body (4)
10 Pigment prepared
from the ink of
cuttleshes (5)
13 Association of
criminals (3)
14 Certify (7)
16 Unit of sound
intensity (3)
17 Alpine vocal call (5)
19 Coloured part
of the eye (4)
21 Family appellation (7)
22 Jubilant (6)
23 Ironic parody (6)
DOWN
1 Fires from a job (5)
2 Dried grape (6)
3 Sediment in
wine (4)
4 Without
weapons (7)
5 Tiny morsel of
bread or cake (5)
7 Blood vessel (6)
11 Large water bird (7)
12 Ofer
suggestions(6)
15 Poem of fourteen
10- or 11-syllable
lines (6)
16 One stroke over
par in golf (5)
18 Belgian city (5)
20 Soap froth (4)
O
U
G
R
I B
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H
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4

S U B U R B A B L Y
H L E N E
O I N V E R N E S S
O W N I U T
K A I S E R I B E X
I T W I S T R
A L G A G E Y S E R
E T C I O U
A D V E N T U R E N
L L R V G
L A C Y R E C E S S
7 6 9 9 7 8
2 4 1 5 3 3 1 5
1 6 1 4 7 3
3 8 9 6 8 2 3
9 7 8 2 5 6 4 1
1 5 1 2
2 4 9 6 8 3 5 1
9 8 7 6 2 2 6
2 1 3 5 3 7
7 1 3 9 8 7 6 5
9 3 8 9 8 4
4
4
4
4
4
4
4
4
4
The nine-letter word was
SUPREMACY
T
E
R
R
E
S
T
R
I
A
L
S
A
T
E
L
L
I
T
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&
C
A
B
L
E
BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
FRIDAY 2 NOVEMBER 2012
ME AND MRS JONES
BBC1, 9.30PM
The gang gathers at the bar to
celebrate Alfies birthday, where
Gemma encourages Billy to date
another woman.
BAGGAGE
CHANNEL4, 8PM
Featuring a man who allows his ex to
wax his chest and another who likes to
pretend he is in a famous boy band.
Hosted by Gok Wan.
THE MENTALIST
CHANNEL5, 9PM
The return of the crime drama starring
Simon Baker. Jane tries to find out
more about Loreleis connection to
serial killer Red John.
TVPICK
FRIDAY 2 NOVEMBER 2012
40
THEPUNTER
FOOTBALL TRADER
A more low-profile fixture will
suit Chelsea this weekend, after
last weeks goings on, and away
from the live TV cameras in South
Wales I expect Roberto Di
Matteos men to prosper.
The Premier League defeat to
Manchester United was their
first of the campaign and
Chelseas consistency sees them
top the table. Swansea, however,
have been erratic: Michael
Laudrups team have won three
and lost four of their nine
Premier League outings.
Although their results are
better at the Liberty Stadium,
where they have collected eight
of their 11 points, the Blues
are unbeaten on the road,
having taken 10 of the 12 points
available from visits to Wigan,
Queens Park Rangers, Arsenal
and Tottenham.
I would certainly advocate
backing Chelsea at 4/5 with Coral,
not that I expect them to run
away with it.
They drew 1-1 at Swansea last
season and the Swans will have a
real spring in their step after
beating Liverpool and old
manager Brendan Rodgers 3-1 to
reach the League Cup quarter-
finals on Wednesday.
A narrow win is more likely.
Sporting Index are predicting
total goals at 2.9-3.1, which is a
tough mark to challenge. At 3/1
with Ladbrokes, I quite fancy
Chelsea to win by a goal.
BEN CLEMINSON WITH HIS BEST FOOTBALL BETS OF THE WEEKEND
MANCHESTER UNITED...................
ARSENAL .......................................
Tomorrow 12.45pm
SWANSEA......................................
CHELSEA........................................
Tomorrow 3.00pm
WEST HAM.....................................
MANCHESTER CITY ........................
Tomorrow 5.30pm
nPointers
Chelsea at 4/5 with Coral
Chelsea to win by a goal at 3/1 with Ladbrokes
SHOULD Man United and Chelsea
win earlier on in the day, then it
will be imperative for Manchester
City to claim three points from
tomorrows early evening
showdown at West Ham.
They certainly have the tools
to do just that and Corals
offer of 8/11 for a City victory
is very tempting.
The champions might not have
hit top gear yet, but they are the
only remaining unbeaten team
and have won their last two away
games, at Fulham and West
Brom, even if they did have to
come from behind and strike
late to do so.
West Ham have made a decent
start to the season and go into
the game joint eighth on 14
points, but they havent had
too many tough tests yet. The
biggest challenge they faced
was Arsenal at home, and they
lost that one 3-1.
The Hammers were defeated by
the same scoreline when City last
visited Upton Park, in December
2010, and Roberto Mancinis
charges are capable of victory by
a similar margin.
At 15/2 with Coral, City to
triumph 2-0 appeals in the
correct score market,
with the visitors
netting, on average,
exactly two goals-per-
game this season,
while Joe Hart has
kept a clean sheet in
two of their last three
league matches.
Selling goals at 3.0
with Sporting Index
is recommended.
IT was a harsh lesson learned by the
Arsenal fans who left the Madejski
Stadium early during the Gunners
incredible Capital One Cup come-
back against Reading.
But if the scoring at Old Trafford
tomorrow lunchtime resembles
anything like the pattern it
followed when they last visited
Manchester United, then Gunners
supporters would be forgiven for not
hanging around.
Having raced into a 3-0 lead last
August, Uniteds 8-2 victory was
absolute torture and the Red Devils
go in to this clash as clear favourites
after beating Chelsea 3-2 at Stamford
Bridge on Sunday.
We may end up looking back on the
most controversial game of the sea-
son so far as a landmark result, espe-
cially if United can follow that
victory up with another this week-
end. Sir Alex Fergusons men are 4/6
with Coral to take the three points
and that looks a decent price to me.
Arsenals 7-5 victory after extra-
time at Reading was nothing short of
amazing, but Im not sure that per-
formance will have much bearing on
what to expect here, with Arsene
Wenger reverting to his strongest XI.
So far this term, Arsenal have expe-
rienced mixed fortunes. For all the
positive results, like the 2-0 victory at
Anfield, or 6-1 home win over
Southampton, there have been disap-
pointing ones, such as the 2-1 reverse
against Chelsea at the Emirates and,
particularly, the 1-0 loss at Norwich.
The fact they have lost their last
four at Old Trafford in all competi-
tions does not bode well for Arsenal.
Furthermore, it has been just over six
years since they last beat United in
Manchester, when striker Emmanuel
Adebayor grabbed a late goal in a
1-0 triumph.
Of course, United havent been bul-
letproof this season. They lost 1-0 at
Goodison Park on the opening day of
the campaign and suffered their first
home Premier League defeat to
Tottenham at the end of last month.
They also lost their second trip to
Stamford Bridge in four days on
Wednesday in the League Cup, but
they have won all of their other 11
matches in all competitions.
Robin van Persie has been on fire
since trading London for the North
West, with nine goals to his name
already in a United shirt, and it
would be no surprise to see him
come back to haunt his old col-
leagues. The Dutchman is 7/2 to net
first with Coral and a general evens
to score anytime.
The 10 goals scored in this fixture
last year have skewed the average
return from the contest in recent
times, but going back to the start of
2007/08 the mean is above three per
game and there has been just one
goalless draw in the last 17 matches.
Backing United to win 3-1 is a
tempting correct score option, at 11/1
with Coral, considering they have
managed that result twice in the last
nine contests.
And with their nine league games
this season seeing a total haul of 37
goals, their matches are averaging
just over four a time.
Understandably, after being stung
to the tune of 350,000 by a flood of
spread buyers during Arsenals game
at Reading, and getting hit again on
Wednesday with the thriller at
Stamford Bridge, Sporting Index
have quoted a total goals spread of
3.25-3.45. It is a risk buying at that
price but it may still be worth doing.
No mercy
from Van
Persie
against
old friends
nPointers
Manchester United at 4/6 with Coral
United to win 3-1 at 11/1 with Coral
Buy total goals at 3.45 with Sporting Index
nPointers
Manchester City at 8/11 with Coral
City to win 2-0 at 15/2 with Coral
Sell total goals at 3.0 with
Sporting Index
Carlos Tevez
returns to Upton
Park tomorrow
evening
Manchester Uniteds 24m former Arsenal captain, Robin van Persie, will hope to be celebrating against his former club tomorrow
41 cityam.com
FRIDAY 2 NOVEMBER 2012
1700+ Shops Text CITYAM
to 82211
coral.co.uk 0800 242 232
BREEDERS CUP FILLY & MARE TURF
1m2f, Grade 1, Santa Anita 10.48pm, Live on ATR
5/2 The Fugue
3/1 Ridasiyna
13/2 Nahrain
9/1 Marketing Mix
12/1 Im A Dreamer
12/1 In Lingerie
12/1 Zagora
14/1 Lady Of Shamrock
16/1 Up
33/1 Star Billing
40/1 Stormy Lucy
NR Nereid
Each-way 1/5 the odds a place 1-2-3
Well refund 20% of your
combined losses over all 6
Breeders Cup races tonight.
BREEDERS CUP RACES OFFER: UK/ROI / website/mobile/telebet customers 18+. We will refund 20% of aggregated net
losses accrued on win single and win part of each way single bets placed after 8:30am2/11 on Fridays 6 Breeders Cup races as a
free bet up to a maximum/500 free bet token. Free bet credited by 12:00 03/11/12. Free bet valid for 7 days and must be wagered
in full on any Single sports bet (excludes tote pool). Stake not returned. Full terms at coral.co.uk/sports/offers/breederscup_freebet
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BET 30
BREEDERS CUP LADIES CLASSIC
1m1f, Grade 1, Dirt, Santa Anita 11.30pm, Live on ATR
5/2 Royal Delta
4/1 Awesome Feather
9/2 Questing
5/1 My Miss Aurelia
6/1 Love And Pride
14/1 Grace Hall
14/1 Include Me Out
33/1 Class Included
Each-way 1/5 the odds a place 1-2-3
Above races: Non-runner money back. Rule 4 may apply.
Prices subject to uctuation.
RACING TRADER
BILL ESDAILE WITH HIS BEST BETS ON BOTH SIDES OF THE POND
W
ITH its monster purses
the Breeders Cup has
never struggled to
attract the top horses
from around the globe and a
strong European challenge has
arrived in Santa Anita for the
29th annual championship.
Considering Europes poor
record in the Classic (12.35am),
the $5 million (3.1m) highlight
of the two-day meeting on
Sunday, its no surprise to see an
all-American affair.
Game On Dude was a gallant
second in this race last year
under Chantal Sutherland, beat-
en by her ex-fiance Mike Smith
on Drosselmeyer, and is best-
priced 2/1 with Coral to gain
compensation. Rafael Bejarano
has taken the ride this year and
the gelding will defend a 100 per
cent record at Santa Anita hav-
ing won five from five at the
California track.
At that price he is very short
albeit in a poor looking renew-
al so a better value alternative
might be MUCHO MACHO MAN
at 8/1. Handled by the relatively
unknown Kathy Ritvo, the son of
former Juvenile winner Macho
Uno has got better with age. Hes
won four of his last six starts and
looks ready to return to this 10
furlong trip. Hes also done all
his winning on left-handed flat
tracks similar to Santa Anita.
Elsewhere tomorrow, the
Europeans have a strong hand in
the Juvenile Turf (6.50pm) with
the front three in the market all
trained in Britain or Ireland.
Favourite Dundonnell is a US-
bred colt but is another worth
taking on at his price in a big
field full of unexposed types.
ARTIGIANO may have only
won once in six starts but has
only been behind the best two-
year-olds this season including
Olympic Glory, Steeler and the
unbeaten Dawn Approach. He
bolted up by six lengths the only
time he encountered the firm
surface he wants and that, com-
bined with a good draw, will see
him go well.
The one most likely to justify
favouritism at a short price is
GROUPIE DOLL. She is on a five-
timer in the Filly and Mare
Sprint (7.35pm) and I fancy her to
do the business at 11/10 with
Paddy Power. Course winner
Turbulent Descent is another to
consider but the Coolmore-
owned filly is prone to throwing
in a shocker.
The Turf (10.18pm) has long
been the European banker with
10 of the last 12 renewals going
to horses trained in Europe. St
Nicholas Abbey returns to
defend his crown but I think its
going to Asia this year in the
shape of TRAILBLAZER.
After heartache in the Arc with
Orfevre, Japan can celebrate suc-
cess with Yasutoshi Ikees charge
who has been targeted at this
race and did brilliantly to finish
so close on his last start over an
inadequate mile.
Over tomorrows longer trip he
looks a great each-way bet at 6/1
with Coral in a race lacking
strength in depth. Shareta and St
Nicholas Abbey ran poorly in des-
perate conditions in the Arc and
might not be quite ready to do
themselves justice here.
The best bets from this
evenings action come in the
form of two females, THE
FUGUE in the Filly and Mare
Turf (10.48pm) and SPRING VEN-
TURE in the Juvenile Fillies Turf
(9.28pm). The Fugue has been
put away for this in mind and is
a real 10 furlong specialist. There
are plenty of dangers led by
Marketing Mix but Im confident
champion trainer in-waiting
John Gosden can crown off a
glorious season.
Finally, Spring Venture can foil
the gamble on Sky Lantern. This
continents two-year-old fillies
have yet to win at this meeting in
27 runs.
Spring Venture appeals as an
unbeaten juvenile who has won
at shorter and further than this
mile test, proving both her speed
and her stamina.
As ever, you can follow me on
Twitter @BillEsdaile for all my
racing views.
Mucho Macho
Man ready to
flex his muscles
in the Breeders
Cup Classic
nPointers
SPRING VENTURE 9.28pm Santa Anita (today)
THE FUGUE 10.46pm Santa Anita (today)
ARTIGIANO e/w 6.50pm Santa Anita
(tomorrow)
GROUPIE DOLL 7.35pm Santa Anita
(tomorrow)
TRAILBLAZER e/w 10.18pm Santa Anita
(tomorrow)
MUCHO MACHO MAN e/w 12.35am Santa Anita
(Sunday)
ALTHOUGH the real big bucks
are on offer on the other side of
the pond this weekend, back on
home soil, tomorrows bet365
Charlie Hall Chase at Wetherby
(3.25pm) marks the real start
of the jumps season for
most punters.
Paul Nicholls Silviniaco Conti
has been the one for money all
week after a hugely impressive
win at Aintree in April. However,
I dont think its wise to read too
much into Aintree form and this
will be only his sixth career start
over fences. Hes also only a six-
year-old and you have to go back
to 1982 for the last time a horse
from that age bracket or
younger took this race.
WEIRD AL was a commanding
winner of this contest 12
months ago on his first start for
Donald McCain and he has won
on his seasonal reappearance for
the last four seasons. A slight
concern is that he has to carry a
double penalty, but I cant see
him out of the first three so he is
worth backing each-way at 5/1
with Coral.
Earlier on the card, SMAD
PLACE has a great chance in the
John Smiths Hurdle (2.50pm)
for the in-form Alan King
yard. He has gone well
fresh in the past and is
fancied to see off Restless
Harry, Tidal Bay and Cape
Tribulation. Its also worth
having a few quid on Nicky
Hendersons UNE
ARTISTE in the
OLBG.com Mares
Hurdle (2.15pm)
under Jeremiah
McGrath.
There is some equally interest-
ing action at Ascot tomorrow
afternoon and Hendersons
HADRIANS APPROACH is fan-
cied to land the Beginners
Chase at 1.25pm at a course
where he won over hurdles
last season.
If ILE DE RE is entered in the
William Hill Handicap Hurdle
(2.35pm), take the hint as the
Chester Cup and
Northumberland Plate
winner is incredibly well-
handicapped over hurdles.
He will need a penalty to
get into the Racing
Post Hurdle (for-
merly the
Greatwood) at
Cheltenham in a
fortnight, but
Brampour won
this race 12
months ago
before landing the double at
Prestbury Park.
Victor Dartnalls ACE HIGH
must go close in the United
House Gold Cup (3.10pm) follow-
ing his solid reappearance at
Chepstow last month. The stable
took this prize with Exmoor
Ranger last season.
Finally, dont forget to book
your tickets for Blue Square Bet
Gentlemens Day at Sandown a
week tomorrow. Champion jock-
ey AP McCoy is the meetings
ambassador and has been pro-
moting the day as racings very
own James Bond.
Weird Al can land Wetherbys Charlie
Hall Chase for second year running
AP McCoy has a
licence to thrill
Mucho Macho
Man is the value
alternative
against favourite
Game On Dude
nPointers
HADRIANS APPROACH 1.25pm Ascot (tomorrow)
UNE ARTISTE 2.15pm Wetherby (tomorrow)
ILE DE RE e/w 2.35pm Ascot (tomorrow)
SMAD PLACE 2.50pm Wetherby (tomorrow)
ACE HIGH e/w 13.10pm Ascot (tomorrow)
WEIRD AL e/w 3.25pm Wetherby (tomorrow)
CHELSEA defender Gary Cahill has
reaffirmed his intention to remain
in his sides first team as John Terrys
four-match ban nears its completion.
Club captain Terry and David Luiz
have this season largely been
manager Roberto Di Matteos first-
choice central defensive pairing but
since the formers suspension after
the Football Association found him
guilty of racially abusing Queens
Park Rangerss Anton Ferdinand,
Cahill has been his consistent
replacement and is consequently
reluctant to return to the sidelines.
The bench is not where I want to
be, he said. It has been frustrating
for me at times this season but I
think we rotate the team well and as
long as you are getting as much
game time as other people and not
looked upon as the third-choice then
that is fine.
With the amount of fixtures
we have got coming up, I dont
think you can keep a pair
together consistently.
You are going to be changing, but
its important that you are up there
in that rotation, and it is rotation.
Terry will on Saturday complete
the final installment of his ban
when Chelsea are away in the
Premier League to Swansea, while
Luiz has again been guilty of
producing typically mercurial form.
Cahill driven to
stay as Terrys
ban nears end
POLICE have launched an investiga-
tion after a Chelsea supporter
appeared to make a monkey gesture
towards Manchester Uniteds
black forward Danny Welbeck dur-
ing Wednesdays Capital One
Cup match.
The Blues acted swiftly yesterday
to probe the incident after images of
the alleged protagonist began circu-
lating online, appealing for anyone
to identify the man and pledging to
support a criminal prosecution.
The Metropolitan Police later
opened its own investigation after
receiving a complaint regarding
alleged racist behaviour, it said in
a statement, relating to the
midweek game.
The club will be examining all
available footage and asks anyone
who can identify the individual to
contact the club, Chelsea said in a
statement. Chelsea FC is committed
to removing all forms of discrimina-
tion and if we have sufficient evi-
dence we will take the strongest
possible action, including support-
ing criminal prosecution.
Liverpool supporter Phillip
Gannon was banned from football
matches for four years in June after
being found guilty of making a mon-
key gesture towards Uniteds Patrice
Evra in a match in January.
This is the latest episode in a series
of incidents involving Chelsea and
allegations of racism, both from and
towards people connected with the
club, including captain John Terry
and referee Mark Clattenburg.
Remarkably, it is also the second
time in the space of just three days
that police have been moved to look
into allegations of racism at
Stamford Bridge following a fixture
between Chelsea and United.
Officers are currently investigat-
ARSENAL manager Arsene Wenger
has urged fans not to vent their anger
at Robin van Persie when they face
him in tomorrows Premier League
visit to Manchester United.
Van Persie was accused of treachery
when he refused to sign a new con-
tract and demanded a transfer over
the summer, paving the way for the
former captains acrimonious 24m
switch to United.
I hope the reception for him is a
respectful one because he played for
us for eight years and did very well for
us. You want him to be respected,
said Wenger. We campaign against
discrimination it was still the case
last week so why should it not be the
case this week? I dont know [how
fans will respond], I think hell get
the reception I hope for.
Van Persie has begun life at Old
Trafford in the same rich vein of form
that brought him 37 goals in his
final season at Emirates
Stadium, with nine in 12
helping lift United to second
place in the table.
Arsenals top scorer
this term has been Theo
Walcott, who has
notched seven times
despite making just
three starts as Wenger
has been reluctant to
field a player
who is ready to follow Van Persie out
of the club.
Walcott has rejected a 75,000-a-
week contract offer and is believed to
want closer to 100,000, with the
Gunners boss determined to strike a
deal by Christmas or sell the versatile
forward in January rather than lose
him for nothing when his current
deal expires next summer.
Ive not thought about [los-
ing him], because at the
moment I think we will still
manage to make a deal with
him, Wenger added. There
is urgency. We want to
sort it out before
Christmas, one way or
the other.
The England star
is also agitating to be
played in a central role, having been
confined to the right wing, and
though Wenger appears ready to
budge he insists Walcott already has
ample licence to roam infield.
In our team, we have freedom of
movement when we have the ball.
Nobody is handcuffed, said the
Frenchman, whose team lie sixth as
they prepare to return to the site of
last seasons humiliating 8-2 defeat.
Its important to know where we
go, but I think Theo has learnt a lot
on that. He has good pace, makes
excellent, intelligent runs, and hes
become a very good finisher.
Goalkeeper Wojciech Szczesny is
still out with an ankle problem, while
midfielders Abou Diaby and Alex
Oxlade-Chamberlain and left-back
Kieran Gibbs also remain sidelined.
ing claims that Premier League offi-
cial Clattenburg used a racist term in
relation to Chelseas Nigerian mid-
fielder John Obi Mikel during
Sundays match against United.
A complaint to police came after
Chelsea announced they had com-
plained to the Premier Leagues
match delegate about Clattenburgs
inappropriate language. The club
lodged a formal complaint with the
Football Association on Wednesday,
although they dropped allegations
the referee also verbally abused
another player, Juan Mata.
Terry is currently serving a four-
match ban after being found guilty
by an FA panel of racially abusing
QPRs Anton Ferdinand during a
match 12 months ago, having been
acquitted by a criminal court in July.
Clattenburg is understood to deny
the claims, and is expected to be sup-
ported by testimony from his assis-
tants, with whom he was in radio
contact throughout Sundays game.
Arsenal manager Arsene Wenger
yesterday criticised Chelseas haste
in publicising their complaint
against Clattenburg, who will
not officiate this weekend while
investigations continue.
My opinion is just when I didnt
behave well I have an explanation
with the referee at the end of the
game or another day, rather than
going public with little proof.
Swansea boss Michael Laudrup
argued that the investigations should
have been concluded more quickly.
The problem is we have let it go on
too many days, said Laudrup. It hap-
pened Sunday, now its Thursday and
you are asking me about it. Lets get
things on the table and deal with it.
Wenger tells Arsenal supporters to lay off RVP
Gary Cahill wants a regular starting place
FRIDAY 2 NOVEMBER 2012
42
SPORT
cityam.com/sport
BY DECLAN WARRINGTON
BY FRANK DALLERES
@cityam_sport
The Manchester United and England striker Danny Welbeck (right) appeared to be subjected to a monkey gesture by a Chelsea fan
BY FRANK DALLERES
LEADING SCORERS
Manchester United
9 Robin van Persie (7 PL, 2 CL)
5 Javier Hernandez (2 PL, 2 CL, 1 LC)
2 Wayne Rooney (2 PL)
= Rafael da Silva (2 PL)
= Nani (1 PL, 1 LC)
= Shinji Kagawa (2 PL)
Arsenal
7 Theo Walcott (2 PL, 5 LC)
5 Gervinho (3 PL, 2 CL)
4 Lukas Podolski (2 PL, 2 CL)
3 Olivier Giroud (1 PL, 2 LC)
2 Santi Cazorla (2 PL)
= Marouane Chamakh (2 CL)
Key: PL = Premier League; CL =
Champions League; LC = League Cup
Police join Chelsea probe
into monkey gesture fan
Former Gunners captain set to face fans wrath for first time since 24m United transfer
Robin van Persie angered
Arsenal fans with his exit
43
IN BRIEF
Smith agrees Surrey transfer
nCRICKET: South Africa international
Graeme Smith has agreed a three-year
deal to become Surreys captain, but
insists he remains committed to the
national team. He said: I will balance
my new role alongside my continuing
commitments to the Proteas and I look
forward to continuing to represent my
country for many years to come.
Quins tie down fly-half Evans
nRUGBY UNION: Harlequins fly-half
Nick Evans has signed a new three-
year contract to remain at the club to
end speculation of a transfer abroad.
McCarthy makes Ipswich move
nFOOTBALL: Ipswich Town have
appointed Mick McCarthy as manager
on a two-and-a-half year contract. He
said: Make no mistake, at the
moment the club is in a relegation
battle and weve got to fight and scrap
to get out of it.
White sacked in doping scandal
nCYCLING: Australian team Orica-
GreenEdge have sacked Matt White, a
former team-mate of Lance
Armstrong, after he admitted doping
while riding for US Postal team.
Fury in eliminator showdown
nBOXING: British heavyweight Tyson
Fury is to fight Denis Boytsov in a WBC
title eliminator for a shot at world
champion Vitali Klitschko.
PACEMAN James Anderson has backed
Samit Patels bid for a regular Test place
after the all-rounder completed his first
England century in yesterdays drawn
tour match against India A.
Patel scored 104 to add to captain
Alastair Cooks 119 as England amassed
426 for their first innings, a lead of 57,
before India reached 124-4 in the final
action of the three-day contest in
Mumbai.
The Nottinghamshire man has only
played two Tests but has enhanced his
chances of starting the four-match series
against India on 15 November with an
eye-catching stint at the crease.
Anderson believes Patels selection
hopes could be further enhanced by his
ability to cope with the spin bowling
that has so often proved Englands
undoing on trips to the subcontinent.
I thought he was outstanding in this
game, showed great temperament and
just looked calm and controlled, said
Anderson. He played at his own tempo
Cook at the other end, playing at his,
which is very different to Samits and I
thought they complemented each other
very well. Hes a very good all-round
player. He plays spin very well. He
was very controlled and composed
out there, and thats what you need in
these conditions.
Anderson admitted that scepticism
about Kevin Pietersens ability to fit
back in following his disruptive text
messaging exploits had been justified,
but insisted the explosive batsman had
enjoyed a smooth reintegration.
All the stuff thats gone on, its all
well and good saying were going to
draw a line under it, he added. But I
think thats actually happened, and it
just seems to be back to normal in the
dressing room and on the field.
Matt Prior built on Patel and Cooks
fifth-wicket stand of 169 with an almost
run-a-ball 51, with Tim Bresnan adding
33 not out as Yuvraj Singh proved India
As most effective bowler with 5-94.
Anderson took two more wickets to
add to his first-innings pair, with
Bresnan and Patel, who claimed Ajinkya
Rahane (54), claiming one apiece.
Englands next tour match, against a
Mumbai XI, begins on Saturday.
MCLARENS Lewis Hamilton is
adamant that he need not have
any concerns about his impending
move to Mercedes as fears arise
about their lack of form in the
second half of this season.
The Briton is to end a 14-year
association with McLaren to join a
team who over the last three races
have failed to register a solitary
point but after team-mate Jenson
Button described his departure as
a big loss, Hamilton insisted he
remains happy with his decision.
Hamilton still happy about
move to faltering Mercedes
It doesnt worry me, said
Hamilton, who this weekend
competes in the Abu Dhabi
Grand Prix.
Im really excited to go there. I
feel fantastic about the decision.
Im massively excited about
working with new people. It is a
fantastic team. I know they have
lost their way a little bit at the
moment but Im going to go and
help them find their way.
I already knew how big [the
task] was. I really thought about it
hard. Perhaps its growing as a
task, but I'm excited about it.
Right now Liam has my full attention. Im training for a 12-round war.
Hes got nothing to lose and has been performing well
WBO lightweight champion Ricky Burns on his December 15 world title defence against underdog Liam Walsh in London

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Results
LONDON Wasps are on a high follow-
ing four straight wins, but hooker
Tom Lindsay has bad news for
Saracens ahead of Sundays Aviva
Premiership clash insisting the for-
wards are still not satisfied.
Last seasons woes where Wasps
survived the drop on the last day of
the season seem a thing of the past
now with Dai Youngs men sitting
seventh in the table. And confidence
couldnt be higher ahead of the
derby trip to Vicarage Road following
four consecutive victories two
apiece in the league in Europe.
With flying wings Tom Varndell
and Christian Wade occupying the
top two spots in the Aviva
Premiership try-scoring charts,
Lindsay insists the forwards feel the
need to follow suit, meaning Sarries
are in for a fight this weekend.
We havent won four on the
bounce for about two years and to
get bonus points from the last three
of those puts us in a decent place in
both the Amlin Challenge Cup and
the Premiership, said the 24-year-
old. We have to make sure though
we are in the present, and this week-
end is going to be very tough playing
the team second in the table.
While we are taking a lot of confi-
dence off the back of our last few fix-
tures, we know there are loads of
areas we need to improve on.
On a personal note the pack have
a lot to prove after last weekend
because we just didnt get to where
we wanted to be.
We are hurting a little bit at the
moment as a group of forwards but I
think we are all looking forward to
proving a point this weekend.
However confidence wont exactly
be lacking with Saracens themselves
having won five straight, following
up two Heineken Cup victories by
toppling the previously top of the
table Northampton Saints 16-3 in
their own back yard.
And although the Sarries squad
has been decimated by international
call-ups, back Chris Wyles believes
they have more than enough fire-
power in reserve.
Obviously there is a certain ele-
ment of disruption with internation-
al call ups but Ive been saying since
the start of the season that we have a
great squad at Saracens, he said.
Squads win Premierships and
Heineken Cups and we have what it
takes in that department.
Aviva is proud to be title sponsor of
Aviva Premiership Rugby one of the
world's 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
BY BEN BAKER
Wasps pack out to sting Saracens in derby
Patel can tame
Indias swing,
insists Anderson
BY FRANK DALLERES
BY DECLAN WARRINGTON
BRITISH No1 Andy Murray revealed
that his greatest priority is to
impress at next weeks ATP Tour
Finals after the underwhelming
performance with which he lost to
Polands Jerzy Janowicz.
The 6ft 7in underdog defeated the
US Open champion 5-7, 7-6 (7-4), 6-2
in two hours and 25 minutes in the
third round of the BNP Paribas Open
in Paris with a performance that
Murray described as aggressive but
one that he felt was encouraged by
errors uncharacteristically made.
Murray determined to learn
from loss in time for London
I didnt play a particularly good
game and missed a couple of shots
that I would have hoped to have
made, said Murray who has this
season occasionally struggled with
an ongoing back problem yet is
among the favourites at the ATP
Tour Finals which begin on Monday
at Londons O2 Arena.
He probably gained some
confidence from that and started
playing better. He played a good
tie-break, played aggressive.
I have to make sure I tighten that
up next week, if I get that
opportunity in the matches.
BY DECLAN WARRINGTON
Batsman Samit Patel yesterday secured his first England century, against India A
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