BUSINESS WITH PERSONALITY

BUSINESS WITH PERSONALITY

Ireland dodges debt bullet with repayment deferral scheme
Mark Carneys appointment took observers by surprise as he had previously ruled himself out of the running for the top job
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ISSUE 1,815 FRIDAY 8 FEBRUARY 2013
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IRELAND clinched an historic deal
yesterday to ease pressure on its
debt mountain and defer the
legacy costs of bailing out failed
Anglo Irish Bank and Irish
Nationwide.
The deal, which won the backing
of the European Central Bank
yesterday after 18 fraught months
of negotiations, will stretch out
the cost of paying back the bailout
to about 40 years instead of ten,
cutting the states borrowing costs
by 20bn (17bn) over the next
decade.
The deal sent borrowing costs
down below pre-2007 levels last
night, with 10-year yields
plummeting to 3.955 per cent.
[This] outcome is an historic
step on the road to economic
recovery. It secures the future
financial position of the state,
Prime Minister Enda Kenny said.
The terms of the agreement,
which involved the formal
liquidation of the banks yesterday,
will see short term emergency
notes issued in 2009 to keep the
banks afloat converted into longer
dated sovereign debt, which is
cheaper to finance.
Converting the notes will give
more scope to post collateral to
the ECB. The ECB does not accept
the notes as collateral, but does
accept sovereign bonds, allowing
the banks to borrow cash.
BY MICHAEL BOW
BY TIM WALLACE
THE BANK of England could boost
growth without creating too much
more inflation, as long as it is pre-
pared to be more creative and more
flexible, incoming governor Mark
Carney promised MPs yesterday.
Marking a sharp change from the
era of outgoing head Sir Mervyn
King, Carney raised the prospect of
changing the Banks target, increas-
ing flexibility around its operations,
and shaking up management in a
more cordial and open fashion.
Policymakers could be given a
dual mandate to target unemploy-
ment and growth as well as infla-
tion, he told the parliamentary
hearing, drawing on international
experience of countries like the US
and his native Canada.
Carney called for a public debate
around innovations like nominal
GDP targeting, despite Sir Mervyns
rejection of the idea.
The Bank of Canada governor ulti-
mately agrees such a drastic change
would be not be beneficial, but just
raising the idea is an indication he
wants to bring a new era of fresh
thinking to the Bank.
For example, he told MPs he wants
to change the Banks policy hori-
zons. Currently it only sets interest
rates for one month at a time.
But Carney believes a pledge to
keep interest rates down for 15
months created more stability in
the Canadian economy, giving
households and firms a vital extra
incentive to borrow and invest.
It had an immediate effect in the
money markets, a measurable and
persistent effect with direct pass
through to broader financial condi-
tions, he told the Treasury Select
Committee. It reached over the
heads of central bank watchers and
directly to Canadians to say borrow-
ing was available at unprecedented
rates for a period of time.
Similarly Carney believes a pledge
to keep rates low until unemploy-
ment falls below a set target could
give the economy the boost it needs
to get out of its current long slump.
Changing the Banks mandate to a
focus on growth and jobs, as well as
inflation would allow it to let prices
run high more openly than it does
now, if policymakers fear the tough
social consequences of sticking to
the inflation target.
The session also revealed a change
of style compared with Sir Mervyn
Carney favours consensus in his
management, contrasting with
some accusations that Sir Mervyn
has a more commanding approach.
But there were a few signs of
potential discord Carney said he
favours imposing a much tighter
leverage ratio on UK banks than the
limit George Osborne is applying,
arguing tighter ratios helped
Canadas banks through the crisis.
This is the first time MPs have
been able to grill an incoming Bank
governor, reflecting the extra
accountability Carney takes on with
the Banks new powers.
They approved the appointment.
How Carney moved sterling
18:00 12:00 06:00 00:00
1.564
1.566
1.568
1.570
1.572
1.574
1.576
/$
New Bank of England boss
points to a change in style
MORE: Page 3

allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Bank rolls over QE while
Draghi hints at rate cut
THE BANK of England yesterday
announced it would reinvest
maturing assets in the gilt market,
to keep its asset portfolio in line
with its 375bn target.
The rate-setters kept interest rates
at their all-time low of 0.5 per cent
for the 47th month, and main-
tained the size of the quantitative
easing (QE) gilt-purchase pro-
gramme at 375bn.
With 6.6bn of gilts maturing,
this required a reinvestment of
funds, a fact the Bank announced
in a press release unusual except
when policy is changed.
Andrew Goodwin, economist at
ITEM and Oxford Economics, said
the decision could not be described
as QE on the sly according to
Goodwin it would have been secret
monetary tightening if the Bank
had not kept the programme at
375bn.
But the release did reveal that the
Bank had accepted inflation would
stay above target for two years
clearly showing that rate-setters
are not focused solely on inflation.
In an unusual statement for a
month in which policy was left
unchanged, the Bank said the UK
economy is set for a slow but sus-
tained recovery in both demand
and effective supply.
Dell to repatriate $7bn of cash
Dell plans to ship as much as $7.4bn
(4.7bn) of the cash it holds in foreign
countries back to the US to help finance
its proposed buyout, breaking ranks with
other big US technology companies that
have kept most of their liquid reserves
abroad to avoid a big tax hit. News of the
plan was contained in a regulatory filing.
The document says that shortly before the
deal is completed, Dell will free up as
much as $8.1bn in cash and short-term
investments held by its subsidiaries, with
the target amount being $7.4bn.
Magazine sales suffer cell distraction
Data released yesterday shows a big
decline in single-copy sales of US
magazines at newsstands and retail
outlets, amid increased digital
competition and reduced retail space.
Single-copy sales fell 9.5 per cent in 2012.
Monte dei Paschi seeks scandal end
The new management of Monte dei Paschi
di Siena, the Tuscan bank at the centre of
a widening derivatives scandal, has
sought to draw a line under the episode
despite finding evidence of clear errors
in the accounting of those transactions.
Hospitality chiefs recruitment drive
Hospitality and tourism bosses will today
pledge to create thousands of new jobs,
apprenticeships and work placements for
young people over the next three years.
Punch clash with investors over debt
The board of Punch Taverns has set itself
on a collision course with its senior
bondholders after unveiling proposals to
tackle its 2.1bn debt. The company says
that its interest payments would
immediately be cut by 230m.
Royal Mail wins British Gas contract
Royal Mail has won back a multi-million
pound contract to deliver post for British
Gas, six years after it lost the crucial
business to Dutch rival TNT.
UK gets lowest level of R&D support
Britains small and medium-sized firms
receive the lowest level of government
support for R&D funding than any major
economy, an analysis by the Organisation
for Economic Co-operation and
Development has revealed.
New York Times advertising slips
New York Times chief executive Mark
Thompson made his debut to analysts
yesterday, outlining a strategy that
combined cost cuts with digital
investments.
Philip Morris International sees lift
Philip Morris International, which markets
Marlboro cigarettes outside the US, said
fourth-quarter profit rose 11 per cent,
thanks to higher sales volumes in Asia
and Eastern Europe, Middle East and
Africa.
European Central Bank president Mario Draghi said appreciation showed confidence
2
NEWS
BY BEN SOUTHWOOD
To contact the newsdesk email news@cityam.com
T
HERE is no doubt that Mark
Carney will be a breath of fresh
air at the Bank of England, and
will make many useful changes,
especially in terms of culture and
management style. His appointment
will also ensure that there is a single,
simple line on financial regulation,
one which is very tough he wants,
but may not get, even less bank
leverage but not rabidly anti-City,
and which understands all of the
various trade-offs between restrictive
regulations and the availability and
cost of credit.
That said, the chances that he will
turn out to be a monetary policy radi-
cal are receding; his views, as
expressed yesterday, were pretty
mainstream by international stan-
dards. Unfortunately, that means that
some of his proposed changes will for
be the worse though others, of
EDITORS
LETTER
ALLISTER HEATH
Mark Carney will be more of a reformer than a revolutionary
FRIDAY 8 FEBRUARY 2013
course, will be for the better.
There will be substantial reforms
but they will build on, rather than
break with, the past and other coun-
tries experience. First, and most radi-
cally, we may see a shift towards more
of a US-style dual mandate, with high
levels of employment as an objective
of monetary policy, on top of price
stability. The Americans do this, but it
doesnt really work.
Changing interest rates or varying
the supply of money only has an
effect in the short term, and only if it
is unexpected. The risk is that one
ends up with permanently higher
inflation with no gains in output or
jobs. In a famous paper in the
American Economic Review in 1968,
Milton Friedman argued that mone-
tary policy cannot control unemploy-
ment; his critique remains valid.
Second, we will probably see a flexi-
ble inflation target, rather than a
fixed two per cent target, or a more
radical shift to targeting nominal
GDP. My own preference would be for
an even more radical change to a
totally different type of target on
that, more in another column but
at least Carneys reform will see a far
more honest policy. At the moment,
the target is clearly being treated as
de facto flexible in other words, it
is inevitably missed. It will now
become de jure flexible. The danger,
than just gilts. The new governor is
rightly lukewarm about ever more QE
but believes that overall policy will
have to remain loose, citing vast
amounts of slack in the economy.
I have two issues with this: he is giv-
ing too much credence to the idea
that the amount of spare capacity is
easily measurable. Despite high levels
of unemployment, there is probably
far less slack than he thinks.
Regrettably, he is equally unlikely to
have any solution to the problem of
zombie firms: many companies are
only being kept alive via cheap
money, which is preventing the liqui-
dation of dud businesses and the real-
location of assets to more productive
uses. One thing is certain: Carney
isnt taking on an easy task.
of course, is that this merely ratio-
nalises permanently high inflation.
So this change could be positive but
it is fraught with risks.
Third, Carney wants the MPC to
announce its long-term intentions:
for example, that rates will stay low
for two years. If credible, this reform
will help businesses and investors
plan. But it will also create problems:
at the moment, losers from monetary
policy are given some hope that their
situation could change at any MPC
meeting. Under Carney system, pen-
sioners suffering from low rates and
QE will lose hope and therefore
become politically frustrated. On bal-
ance, however, this is an excellent
reform.
We shall see whether there is a
fourth change. It is unclear whether
he may eventually agree to the Bank
buying private sector assets, rather
And in Frankfurt, European
Central Bank president Mario Draghi
said he will monitor the economic
impact of a strengthening euro, feed-
ing expectations the climbing cur-
rency could open the door to an
interest rate cut in the Eurozone.
After the ECB left its main interest
rate at 0.75 per cent yesterday,
Draghi said the exchange rate was
near to its long-term average but
went further than many analysts had
expected.
The appreciation is, in a sense, a
sign of return of confidence in the
euro, Draghi told a news conference.
The exchange rate is not a policy
target, but it is important for growth
and price stability and we certainly
want to see whether the apprecia-
tion is sustained and will alter our
risk assessment as far as price stabili-
ty is concerned.
His comments sent the euro falling
sharply against the dollar and yen.
Carsten Brezeski at ING said of the
presidents comments: Draghi suc-
cessfully tried to talk down the euro
exchange rate and opened the door
for possible policy action.
MANAGING directors in Barclays
investment bank will not get an
upfront bonus for 2012, instead
receiving the payouts half cash
and half shares over the next
three years.
More junior staff will receive a
bonus of up to 65,000 in cash
upfront, gaining more at the
expense of the 1,200 MDs affected.
It is part of a push by the bank
to expose senior staff to more risk,
in line with the drive to improve
the institutions culture and
promote long-term thinking.
Senior Barclays
staff delay pay
BY TIM WALLACE
EMPLOYEES at Seymour Pierce were
summoned to a staff meeting last
night to hear of their fate at the
financially stretched small compa-
nies bank but they left it no clearer
as to their future, only with a hope
that there might be a resolution to
the situation later today.
Chief executive Tom Forcier told
those present that the lossmaking
investment bank was in talks with
more than one possible buyer.
Grant Thornton is waiting in the
background as a likely administrator
should talks fail.
Seymour still
hopes for deal
BY DAVID HELLIER
WHAT THE OTHER PAPERS SAY THIS MORNING
Find your next step at
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DAVID HELLIER: Page 5

PROFESSIONAL network LinkedIn
hailed a transformative 12
months for the business yesterday
after an 86 per cent increase in
annual revenues.
The online company increased
revenues to $972.3m (618.8m) due
to a big jump in advertising sales.
Revenues per user shot up from
$1.16 a year ago to $1.50 for the
three months ending December
2012. The big numbers were
boosted by membership numbers
passing the 200m mark. The
company is now adding two
members a second, it said.
LinkedIn shines
to revenue gain
BY MICHAEL BOW
THE boss of failed retail group
Baugur, one-time king of the British
high street, was found guilty of tax
evasion yesterday.
Jon Asgeir Johannesson, whose
investment company owned stakes
in a string of British high-street
retailers including Hamleys,
Iceland and House of Fraser, was
handed a suspended one-year prison
sentence and a fined of 62m
Icelandic crowns (311,000).
The court found Johannesson had
deliberately filed erroneous tax
returns on earnings.
Retail boss
found guilty
BY CITY A.M. REPORTER
MARK Carney yesterday pledged to
shake up weak economic forecasting,
work out how to unwind quantita-
tive easing (QE) and reorganise the
Bank to make sure its vast new pow-
ers over banks can be used properly.
The Canadian governor showed
some disagreement with Sir Mervyn
King, arguing interest rates should be
raised when policy needs to be tight-
ened, rather than selling gilts to
begin with.
And he said in any case a credible
plan is needed in advance in order to
maintain confidence. The exit needs
to be achieved without disrupting
the gilts market.
But before that is necessary, he also
suggested the Bank should consider
being more creative in the use of QE,
potentially buying corporate bonds
and SME loans to stimulate the econ-
omy more effectively than buying
government bonds alone.
Responding to critical reviews by
external City grandees, Carney
New governor
vows to shake
up central bank
BY TIM WALLACE argued he would strive to build con-
sensus in the Bank, rather than rul-
ing by diktat.
And he said the Bank needs to
become more nurturing, promoting
talent through the institution and
creating a team culture.
Succession planning and talent
management will be paramount. The
Bank will need to attract, retain and
promote an assertive, engaged,
accountable staff at all levels, he said
in additional written evidence to MPs.
The Bank should develop its team
culture that promotes timely, well-
researched and consensus-based deci-
sions.
Previous reports had found a cul-
ture where staff were afraid to chal-
lenge senior managers and would
self-censor to avoid damage to their
careers.
And Carney argued in favour of
more transparent reporting of Bank
forecasts, for example including alter-
native inflation and growth scenarios
in reports when the true economic
picture is in doubt.
Mark Carney is known for a more open style of leadership than current head Sir Mervyn King
Charming Carney wins hearts
G
OLDMAN Sachs bankers dont
often get a warm welcome
from Labour MPs. Nor do
public sector staff earning the
best part of 1m.
Lauded as the greatest central
banker of his generation and, as it
happens, the best looking Mark
Carney was surely in for a hard bump
back to earth.
Quarter of a million quid housing
allowance? My constituents can hard-
ly get mortgages, came the first blow.
Your staff are on a pay freeze how
can you justify the cash youre
getting?
The feisty backbenchers didnt dis-
appoint.
I was offered it and I accepted,
came the pleading response.
Its standard practice when senior
execs move from a cheap city
Ottawa to an expensive one.
It wasnt enough. Not nearly
enough.
Why are you only coming for five
years, not the eight we wanted?
The test of commitment. Mocking
his professional dedication.
I have a young family. It fits in with
their school progress. At which point
TIM WALLACE
FRIDAY 8 FEBRUARY 2013
3
NEWS
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OXFORD STREET WESTFIELD LONDON WESTFIELD STRATFORD CITY
HOUSE OF FRASER OXFORD STREET HOUSE OF FRASER VICTORIA
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My Story, My Design
Sterling Silver rings from 30
hearts began to melt into maple
syrup. Maybe we should give this guy
a chance?
So just how well do you know your
banking?
Very well indeed, as it turns out.
New ideas were gently introduced.
Fears over inequality were revealed. A
sympathy for the motives of the
Occupiers who took over Wall Street
and St Pauls was brought into play.
The MPs swooned in response.
Stern on inflation for the hawks,
enthusiastic on growth to please
everyone and downright charming
to seal the deal.
Carney became a hero, approved
wholeheartedly by the newly besotted
parliamentarians. Hopes really are sky
high after that performance.
PROFILE: MARK CARNEY
The 47 year-old Canadian has a
predictably impressive CV, with both
the academia and career sections
full of accomplishments. He studied
economics at Harvard before cross-
ing the pond to gain a D.Phil at
Nufeld College, Oxford. It was
amidst the dreaming spires that he
met Diana Fox a fellow economist
who has gained attention for her
forthright views on the environ-
ment. Carney yesterday attributed
his shorter-than-expected term as
Bank governor ve years to
plans over his childrens education.
The reasoning is less surprising
when one considers that he and his
wife have four daughters.
After leaving Oxford, Carney worked
at Goldman Sachs for 13 years
before becoming senior associate
deputy minister of nance in
Canada, and then governor of the
Bank of Canada. Yesterday Carney
insisted that he holds no political
ambitions, following accusations
that close links to some Canadian
Liberals may hint at his next move
once he leaves Threadneedle Street.
A senior gure in the efforts to
develop global governance of the
banking sector, Carney chairs the
Financial Stability Board and is on
the board of the Bank of
International Settlements. He starts
his new job in July.
POLITICAL
SKETCH
APPLE said yesterday it would consid-
er proposals from US billionaire
David Einhorn urging the company
to return more of its colossal cash
pile to shareholders.
Einhorns hedge fund Greenlight
Capital, which owns 0.12 per cent of
the iPhone and iPad maker, yesterday
said it was taking legal action over
Apples proposals to change its com-
pany charter, which would prevent
the company from issuing new, high-
yield, preferred shares. Einhorn
claimed the proposals violated US
corporate voting rules.
Einhorn also wrote to other
investors, imploring them to vote
against the proposal at Apples
annual meeting later this
month. Paying out more of
Apples $137bn (87bn)
cash pile would be likely to
placate investors who have
seen the companys share
price fall by a third since its
summer highs.
We believe Apple must
examine all of its options
to unlock the grow-
Apple to chew
over proposals
to return cash
BY JAMES TITCOMB
ing value of its balance sheet for all
shareholders, Einhorn wrote to
investors. Over the past several
months, we have had an ongoing dia-
logue with Apple regarding one
option to do so, namely the creation
of a new security, a perpetual pre-
ferred stock that would be distributed
at no cost to Apples existing share-
holders, and would provide an attrac-
tive, sustainable dividend while
preserving Apples financial resources
to pursue its business strategy.
Apple responded by saying it would
thoroughly evaluate Greenlight
Capitals current proposal, although
it said that the contentious changes to
its charter would not prevent it issu-
ing preferred stock. Shares in the com-
pany rose around three per cent
following the statement.
Apple started paying dividends
for the first time since 1995 last
year, but it has much of its cash
overseas and repatriating it would
incur a significant tax bill.
David Einhorn is taking
legal action against Apple
WARNER Music has bought the
Parlophone record label from
Universal Music, winning a
bidding war against rivals
including Sony Music and BMG.
Warner is paying 487m for the
label, whose artist roster includes
Coldplay, Kylie Minogue,
Radiohead and Kraftwerk, after
significantly outbidding three
other parties for the label.
A joint bid from Sony Music and
Bertelsmanns BMG, an offer from
media tycoon Simon Fuller, and
one from US billionaire Ronald
Perelman were also tendered.
Warner Music wins prized record
label Parlophone in 487m deal
BY JAMES TITCOMB Universal Music, owned by
French media giant Vivendi, is
being forced to sell off
Parlophone an arm of the EMI
label in order to win clearance
for its 1.2bn takeover of EMI.
The sale cost more than many
had expected, with Universal
making back almost half the cost
of its EMI purchase.
Warner has also bought rights
to EMIs catalogue of artists
which includes the Beatles in
nine European countries including
France and Spain.
Warner does not expect to see
the same competition issues that
delayed Universals EMI deal.
LAZARD yesterday reported
quarterly results that beat analysts'
estimates as revenue from its
advisory business rose 19 per cent.
The investment bank reported a
net loss of $5.3m (3.4m), compared
to a net loss of $4.8m a year earlier.
Operating revenue rose 22 per
cent to $574m. Advisory business
revenue was $309m.
The implementation of cost
saving initiatives we announced in
October is on track, chief financial
officer Matthieu Bucaille said in a
statement.
Lazards losses
beat forecasts
BY CITY A.M. REPORTER
DOUG Richards has left CMC
Markets, the spread-betting group,
majority-owned by Peter Cruddas, the
group confirmed yesterday.
As revealed by City A.M., Richards
position as chief executive has been
taken up by Cruddas.
I am very proud of the role I have
played in building the strong proposi-
tion that CMC Markets offers active
traders today, said Richards, who has
overseen a 50m investment pro-
gramme.
CMC said that Richards always
intended to leave during 2013.
Richards quits
CMC Markets
BY DAVID HELLIER
FRIDAY 8 FEBRUARY 2013
4
NEWS
cityam.com
Parlophones rights include those to German electronic music group Kraftwerk
SWISS giant Credit Suisse saw prof-
its rise in the final quarter of 2012
with falling staff costs helping the
bank through a year of tough
reforms in the industry, its financial
results showed yesterday.
But weak investment bank rev-
enues and a slight drop in wealth
management earnings meant the
rise in profits disappointed analysts,
and the year as a whole saw lower
profits than 2011.
Pre-tax profits came in at SFr397m
(275.6m) in the final three months
of 2012, up from SFr254m in the pre-
vious quarter and a loss of SFr637m
in the fourth quarter of 2011.
For the year as a whole profits
slipped to SFr1.83bn, down 24 per
cent from SFr1.953bn in 2011.
Operating expenses fell five per
cent in the year, but net revenues
dipped seven per cent, accounting
for the fall in profits.
Net new assets under management
dipped 76.8 per cent on the year
while profits at the investment bank
Credit Suisses
staff cuts shore
up weak profits
BY TIM WALLACE
dropped 38 per cent to SFr298m on
low levels of business activity in fixed
income and equities.
But the bank managed to cut 2300
staff in the year, bringing its head-
count down five per cent to 47,400.
And it reduced its risk-weighted
assets by SFr99bn to SFr924bn,
derisking the business and cutting
its capital needs.
That takes the bank within touch-
ing distance of its SFr900bn target it
hopes to hit at the end of 2013.
The banks shares dipped 3.11 per
cent on the day as the results missed
analysts hopes.
Credit Suisse Group AG
7Feb 1 Feb 4Feb 5Feb 6Feb
26.0
26.5
27.0
27.5
28.0 CHF
26.16
7Feb
FRIDAY 8 FEBRUARY 2013
5
NEWS
cityam.com
NATIONAL Australia Bank (NAB)
saw profits increase in the first
quarter of 2013 as its UK units
the Yorkshire and Clydesdale
banks began to improve, the
group reported yesterday.
Cash profits for the first three
months of the banks financial
year came it at A$1.45bn (950m),
up four per cent on each quarter
of the second half of last year.
This is a pleasing result,
especially given operating
conditions remain challenging
both in Australia and the UK,
notwithstanding recent
improvements in financial
markets, said chief executive
Cameron Clyne.
Australia Bank
sees profits up
BY TIM WALLACE
CANACCORD Financial chief
executive Paul Reynolds yesterday
pledged to continue the firms
expansion in the UK with future
acquisitions.
The Toronto-based firm, which
bought Collins Stewart Hawkpoint
last year, said half its revenue come
from outside Canada and that the
UK was central to expansion plans.
We should be able to continually
finance one or two transactions a
year to add on a billion to two
billion pounds a year in assets
through acquisitions, Reynolds
said. The business revealed revenues
spiked 55.5 per cent in the third
quarter, with two-thirds of that
coming from Canaccord Genuity.
Canaccord to
acquire firms
BY MICHAEL BOW
INSIDE
TRACK
DAVID HELLIER
W
hen Barclays chief executive
Antony Jenkins speaks about
shredding Bob Diamonds
legacy, as he did the other
day, many of his groups rivals are
hoping he is talking about doing
away with an actual part of the bank,
rather than a cultural construct.
For the growth of Barclays invest-
ment bank has been one of the big
changes in the sector over the past
few years.
Barclays has come from nowhere to
become a major force in European
and US investment banking.
Barclays was the only UK-based
bank involved in the Facebook flota-
tion last year; it is one of the key
banks involved in floating house-
builder Crest Nicholson; and when
two giant media deals fell out of the
sky earlier this week, the $24bn buy-
out of Dell and the $23bn bid for
Virgin Media, Barclays was involved
in both. Also in the UK, Barclays is
working on the possible privatisation
of the Royal Mail, which, if it goes
ahead, will be a big deal complete
with a substantial retail offering.
All of this increasing involvement
from Barclays has come at the cost of
rivals market share so they will be
watching next week for signs that
Jenkins, who outlines his strategy on
Tuesday, is preparing for some sort of
retreat.
There is no doubt he will signal the
exit from some risky activities where
he feels the reputational and finan-
cial risks of being open for business
outweigh the benefits. Some predict
that up to 15 per cent of the invest-
ment banks 23,300 employees will be
seeking new employment over the
next few months. It is also true that
Barclays invested heavily in the past
to build up an investment banking
business, BZW, only to shut it down
15 years ago.
Those who were guests at a dinner
with Jenkins in Davos believe he has
no intention of abandoning the
investment bank altogether. He gave
an impassioned defence of it, said
one Davos dinner guest.
It is easy to see why Jenkins is so
keen to keep the investment bank.
According to Ian Gordon of Investec
Securities, the part of the bank built
up by former chief executive Bob
Diamond will contribute roughly half
of all group earnings by 2015.
And with costs coming down due to
a reduction in headcount and com-
pensation (bonuses will be down), the
bank and bank analysts are hoping
for a significant improvement in the
return on equity ratios.
Gordon says Barclays is well-placed
to continue its market share gains as
other banks, like UBS, retreat from
areas liked fixed income. It would be
foolish to butcher a business that
stands to gain so much, he says.
But if Jenkins is going to pull off the
difficult task of not only keeping the
investment bank alive but also nour-
ishing it at a time when costs are
being brought down, he will need to
convey two very different messages.
To the outside world, he will contin-
ue to talk about shredding legacies
and changing cultures.
But internally he will need to recre-
ate more of Diamonds winning cul-
ture if he is to keep the car on the
road. That wont be easy if variable
pay, which incentivises high perform-
ers, is too constrained.
david.hellier@cityam.com
Barclays investment bankers wait to hear their fate
TREVOR Matthews, the Aviva execu-
tive whose 4m golden hello helped
provoke a brutal pay row at the insur-
er, is to leave the company after just
14 months, it was revealed yesterday.
His departure is part of the first
board shake-up under the groups
new chief executive Mark Wilson,
who has inherited a company in the
process of a radical turnaround plan.
Matthews joined the group as chief
executive of Aviva UK in December
2011 but his pay package angered
investors from the start. In addition to
a salary of 720,000 Matthews
received a one-off 470,000 cash pay-
ment, 2m in share options and the
prospect of 1.6m in performance-
related incentives.
Shareholders who had suffered
years of underperformance at insurer
were further upset when it was
revealed Matthews, the former head
of Friends Life, received a 45,000
year-end bonus after just one month
in the role and that Aviva paid for
the 35,000 legal costs he ran up dur-
ing contract negotiations.
Matthews, who will step down at
Aviva-derci as
pay row exec
leaves insurer
BY JAMES WATERSON
Mays AGM, was hired by former chief
executive Andrew Moss. Mosss own
Aviva career ended in last years
shareholder spring when a majority
of investors voted against the compa-
nys executive pay settlement.
As part of yesterdays board shake-up
David McMillan has been appointed
chief executive of Aviva Europe and
former AIA executive Nick Amin is
joining the business as group transfor-
mation director.
Avivas shares have rebounded since
last summer when chairman John
McFarlane launched a root-and-branch
review of the business. It has already
led to the sale of more than a dozen
underperforming and non-core units.
Australia-born Trevor Matthews is one of the best-known figures in UK insurance
Aviva PLC
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Beazley profit
quadruples
SPECIALIST insurer Beazley
yesterday celebrated a 300 per
cent rise in year-end profits to
$251m (160m) after a reduction
in worldwide catastrophes.
The only major payout at the
Lloyds of London business was a
$90m net loss from superstorm
Sandy, which hit North America
last October.
Beazleys strong position in
the event insurance business
means some of this payout went
to cover the costs of the
cancelled New York marathon,
which was due to take place just
days after Sandy made landfall.
BY JAMES WATERSON
WHO ELSE HAS LEFT AVIVA IN THE LAST YEAR?
ICAP, the worlds largest inter-
dealer broker, yesterday reported
a turnaround in fortunes for
January, reversing torrid trading
activity late last year.
The company, led by chief
executive Michael Spencer, said
activity had improved across the
business, as numbers showed a 17
per cent increase in electronic
broking volumes.
It comes on the back of a 13 per
cent fall in revenues for the third
quarter of 2012 and Spencers
admission that last year was one
of the toughest periods in my 36-
year career.
Icap business
back on track
BY MICHAEL BOW
PRIVATE equity giant KKR said the
fourth quarter of last year was its
strongest yet as a publicly listed
firm, as exits from private equity
investments delivered a record
amount of cash for itself and its
investors.
KKR said economic net income
for the fourth quarter, a measure of
private equity profitability, came in
at $347.7m (221.4m), compared
with $285.5m a year ago.
It added assets under
management rose to $75.5bn from
$66.3bn over the quarter due to its
acquisition of Prisma Capital
Partners, a hedge fund-of-funds.
KKR cash pile
rises on deals
BY CITY A.M. REPORTER
ANDREW MOSS
WAS: CHIEF EXECUTIVE
Moss resigned in May after ve years as CEO,
during which the share price fell 60 per cent. He
received a 1.5m payoff, including a years
salary, 300,000 to waive bonus claims and
shares worth 277,000 at yesterdays prices.
IGAL MAYER
WAS: CHIEF EXECUTIVE OF
AVIVA EUROPE
The well-respected Canadian Igal Mayer left the
rm last April after 23 years with the group. He
was on the board for just over a year during
which he received a 2.8m pay package and a
200,000pa housing allowance.
RICHARD HOSKINS
WAS: CHIEF EXECUTIVE OF
AVIVA NORTH AMERICA
Hoskins departure in early 2012 was part of a
plan to remove management levels and cut
costs. But it also presaged Avivas decision to
sell its troubled US business, a deal that eventu-
ally went through for 1.1bn in December.
ALAIN DROMER
WAS: CHIEF EXECUTIVE OF
AVIVA INVESTORS
Dromer left Aviva Investors, the groups invest-
ment management arm, last year after ve
years with the business. It came after he
announced a restructuring that saw 12 per cent
of its workforce 160 people leave the rm.
THE BRITISH music industry trade
body, the BPI, yesterday said the
market had reached a tipping point
towards digital downloads and
streaming of tracks.
A report from the BPI claimed that
27 per cent of people now use legal
digital music services, with a fifth
buying solely via digital channels.
The trade body said that the rise of
4G mobile networks and internet
connected tablets and cars would
accelerate the rise of digital music,
with people able to access the songs
they want at any time.
Music tipping
point heralded
BY JAMES TITCOMB
HMV, the high streets last major
music retailer, is to close a third of
its stores and cut 930 jobs across the
country, administrators confirmed
yesterday.
Deloitte said the closure of 66 loss-
making stores, including four in
London, will take place over the
next two months in a move that will
leave the embattled retailer with a
footprint of 154 outlets.
Last week the administrators
made 190 of HMVs 4,000 staff
redundant at the companys head
office and distribution sites.
The news comes as one of
the UKs biggest retail
landlords today warned
that the number of shops
will fall by almost a third
in some town locations
across the UK over the
next decade.
The report by retail spe-
cialist Columino
and commis-
sioned by
Hammerson
f o r e c a s t s
Administrators
to HMV to close
first 66 stores
BY KASMIRA JEFFORD
that total store numbers across the
country will decline 10.3 per cent
between 2010 and 2020 and by 31
per cent in in-town locations.
The owner of Brent Cross shopping
centre in north London and the
Bullring in Birmingham said as store
numbers decline, retailers will focus
their expansion on major cities with
higher footfall.
Hammerson chief executive David
Atkins said stores will still play a key
role but with consumers using at
least three channels such as their
tablet or laptop to shop.
Mobile devices will account for
over a quarter of retail sales by 2020 -
with sales of around 54bn, the new
report predicts.
The report forecasts that total
retail spend including inflation
will rise by 26 per cent to 377bn
by 2022 on current levels as
household budgets improve,
with consumers aged over 55
expected to contributing the lions
share of growth.
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NEWS
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HMV chief executive
Trevor Moore
OUTLOOK FOR RETAIL IN THE NEXT DECADE
59%
OF CONSUMERS
CURRENTLY SHOP
USING CLICK
AND COLLECT
EXPECTED TO DECLINE
BY 10%
BY 2020
STORE NUMBERS
TO CONTRIBUTE
TOWARDS 62% OF RETAIL
GROWTH (46.7BN) BY 2022
OVER 55s
STORE NUMBERS
IN IN-TOWN
LOCATIONS ARE SET
TO FALL BY 31%
RETAIL SPACE
EXPECTED TO
SHRINK BY
5.7% BY 2020
BY 2020 MOBILE
SPEND SET TO BE
53.9bn
OF DIRECT & INDIRECT SALES
(compared to 2.9bn today)
69%
OF CONSUMERS
EXPECTED TO USE
THREE OR FOUR
RETAIL CHANNELS
TO SHOP BY 2014
WILL BE UP 26% TO
377bn by 2022
RETAIL
SPEND
(INCL. INFLATION)
SOURCE: COLUMINO RESEARCH
UK RETAILERS are braced for an
increase in Chinese shoppers next
week as New Year celebrations
coincide with Golden Week, one of
the countrys biggest holiday periods
for Chinese tourists.
Global Blue, the tax-free shopping
services company, said its expects to
see a repeat of the 30 per cent year-
on-year growth in tax free sales
from Chinese shoppers fuelled by
Golden Week in October 2012.
Luxury brands are set to benefit
the most, with tourists spending
around 712 per transaction.
UK braced for
Chinese spree
BY KASMIRA JEFFORD
BURBERRY finance chief Stacey
Cartwright is to step down from the
luxury group in a management
shake-up that will also see the cre-
ation of a chief operating officer role.
Cartwright, a widely respected
industry figure who has been at the
fashion house for nine years, is to
leave in July to pursue other inter-
ests, Burberry said yesterday.
She will be succeeded by Carol
Fairweather, Burberrys senior vice
president of group finance who has
reported to Cartwright for six years.
Burberry has also appointed John
Smith, a non-executive director at
the company and a former senior
BBC executive, to the new role of
chief operating officer to support
the next phase of growth.
The FTSE boss said he will focus on
driving the groups presence in digi-
tal media and mobile technology as
well as looking at cutting costs.
Burberrys share price fell 5.45 per
cent yesterday on the news of
Cartwrights surprise departure.
Sam Hart, an analyst at Charles
Stanley said there was likely to be
some profit taking behind yester-
days fall in share price. He also cit-
ing a Chinese advertising ban this
Burberry board
change as chief
of finance quits
BY KASMIRA JEFFORD
week on certain expensive gift items
as having an impact on luxury goods
groups.
Inevitably the departure of any
finance director is always a slight rea-
son for concern but I dont think
that is the case in this situation, he
said.
Bethany Hocking at Investec said:
We and the market will be sad to see
Stacey Cartwright go. She is a very
good chief financial officer and I
think the succession plan has been
really well thought out.
Burberry shocked investors last
September when it warned of a slow-
down in spending, especially in the
key luxury goods markets of Asia.
However subsequent statements
have been more positive, with
Christmas sales beating expectations.
Burberrys finance chief Stacey Cartwright is leaving to pursue other interests.
FRIDAY 8 FEBRUARY 2013
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THEFORUM
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JOIN THE DEBATE PAGES 20-21
PROFILE:
John Smith
John Smith is to become
chief operating ofcer, a
new post Burberry said it
createdto support its
expansion, especially after
last years decision to bring its perfumes busi-
ness in-house and create a new beauty divi-
sion. Smith, anon-executivedirector at
Burberry since 2009, was chief executive of
BBC Worldwide from 2005 to 2012, where
under his watch the broadcaster grew its prof-
its four-fold. Prior to BBC Worldwide, he was
director of nance then BBC chief operating
ofcer. Analysts said his operational back-
ground in a complex enterprise like the BBC
made him a good t to take Burberry forward.
Carol Fairweather
Carol Fairweather, 51, has
been Staceys second-in-
command at Burberrys
nance department for
six years after leaving
Rupert Murdochs News International, where
she was nance director for eight years. She
also previously held a senior nancial role at
consultancy group Shandwick. Burberry
yesterday praised her strong track record
of success at Burberry and said her under-
standing of the Burberry business and
brand, coupled with her strong leadership
and nancial skills position her uniquely to
drive continued success in this role, while
ensuring a seamless transition.
SUPERGROUP chief executive Julian Dunkerton said
improvements made to its product range and a better
organized company helped drive a double-digit
growth in sales over the third quarter and place it
firmly among the Christmas winners.
Shares leapt nearly 10 per cent yesterday as the
Superdry owner, which was plagued by a string of
setbacks last year, said sales at stores open a year rose
10.6 per cent, in the three months to 27 January,
driven by good trading over Christmas, with jackets,
knitwear and accessories selling well.
Total group sales jumped 12.3 per cent to 115.1m
while revenue across its wholesale operations rose 5.4
per cent to 25.3m. Dunkerton said a 20 per cent
jump in spring/summer orders showed demand for its
products and confidence in its ranges.
Supergroup shares leap
on festive sales boost
BY KASMIRA JEFFORD
Burberry Group PLC
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FIAT PANDA 4x4
THE S.U.V OF THE YEAR
PLUNGING sales in southern Europe
pulled Vodafones revenues down
during the final three months of
2012, as wary consumers cut their
phone bills.
The company saw revenues fall by
two per cent year-on-year to 11.4bn
as weakness in Spain and Italy moved
service revenue the amount cus-
tomers pay on their mobile phone
bill down 17 per cent in southern
Europe.
The picture in the UK and
Germany, which are tradi-
tionally more resilient mar-
kets for Vodafone, also
worsened, with service rev-
enue falling by 4.5 and 5.9 per
cent respectively.
Although Vodafones cus-
tomer base has increased
marginally in the UK to
19.5m, revenues fell to
1.2bn. The company
blamed the decline on
aggressive competition
Belt-tightening
customers hit
Vodafone sales
BY JAMES TITCOMB driving down prices, and squeezed
wages meaning people were more
wary of going over the minutes and
texts included in their contracts.
People are not cutting back on
usage, they are just cutting back on
spending, chief executive Vittorio
Colao said. He said he hopes to
encourage people to sign up to
Vodafones new Red contracts, which
cost more but offer unlimited texts
and minutes, as a way of managing
the decline in out-of-bundle spending.
Colao shrugged off suggestions that
its rival EEs launch of the UKs first
4G network had had a big effect, say-
ing he expected that only a small
number of technology freaks had
signed up to the service.
EE yesterday said it
would be extending its
4G coverage to 55 per
cent of the popula-
tion by June.
FRIDAY 8 FEBRUARY 2013
12
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V
ODAFONE has been a lucrative
stock for shareholders of late, at
least in terms of the billions in
dividends and share buybacks:
10.2bn in cash returns in 2012 alone.
Investors seemed ready to keep the
faith yesterday, buoying the share
price. But at some point the
fundamentals have to reassert
themselves. And on the latest figures,
there are reasons to worry.
Mobile firms are suffering from
the same challenging market
conditions in the developed world as
everyone else. But Vodafone has it
especially bad because the vast
majority of its revenue, 69 per cent
in 2012, comes from Europe.
Yesterdays figures for the last
quarter of 2012 showed just how bad
the European figures are getting,
with double-digit declines in service
revenue in both Spain (-11.3 per cent)
and Italy (-13.8 per cent).
More worrying is the decline in
European markets that ought to
have been more robust, with
northern and central European
revenue down 0.9 per cent. Careful
consumers, evidently feeling the
pinch in their pockets, were visible
in the UK, where reported revenue
fell 4.5 per cent, in part on less out-
of-bundle use (use in excess of a
contractual data plan). The same
effect occurred in the Netherlands,
where revenue on an organic basis
fell by 3.5 per cent on less out-of-
bundle use, less roaming and a
greater appetite for cheaper mobile
plans. Even in Germany, reported
revenue fell 5.9 per cent.
Of course, other parts of the world
free of the European disease are still
providing the opportunity for rapid
growth. Service revenue was up 18.4
per cent in Turkey and nine per cent
in India. But Vodafones non-
European divisions in Africa, Middle
East and Asia-Pacific are tangential,
contributing just 13 per cent to the
groups adjusted operating profit in
2012. And overall in the last quarter
the region saw service revenue up by
2.7 per cent, which was a slowdown
in the pace of growth: down 1.4 per
cent quarter-on-quarter. In Australia,
service revenue fell by 16 per cent.
One quarter does not make the
year, and Vodafone is still guiding
that the 2013 financial year will see
adjusted operating profit at the
upper end of the range between
11.1bn and 11.9bn. That would put
2013 on a par with recent years, (in
2012 it was 11.5bn; 2011, 11.8bn;
2010, 11.5bn). But it also means no
profit growth at best and, given the
huge contribution its Verizon stake
makes to Vodafones profitability
(accounting for 41.7 per cent of
adjusted operating profit in 2012,
only just behind Europes 46 per
cent), keeping profit on track may
not be so surprising. One alarm bell
to listen for is the possibility of a
decline in service revenue growth for
the year, given that service revenue
was down in the last quarter of 2012
by 2.2 per cent. Service revenue
growth is one of Vodafones key
targets for its 2015 strategy, and it is
targeting one to four per cent
growth in service revenue every year
until 2014. It last missed the target in
2010, but in these tough conditions,
it could happen again. The market
may not want to hear the message,
but the signals from Vodafone look
increasingly weak.
BOTTOM
LINE
MARC SIDWELL
A divided world sends a series of gloomy messages
ONLINE gambling software group
Playtech has been boosted by
record performance at William
Hill Online (WHO), the internet
bookie in which it has a 29 per
cent stake.
Playtech said a 71 per cent year-
on-year rise in its share of William
Hill Onlines profit during the
fourth quarter of last year, along
with its own revenues rising by a
fifth, pushed group income up 26
per cent to 98.8m (84m).
WHOs performance is in the
spotlight because parent company
William Hill is trying to buy
Playtechs stake back, and has
appointed bankers to value the
business. William Hill has a call
option on Playtechs stake,
Playtech boosted by William
Hill stake amid buyback talks
BY JAMES TITCOMB
allowing the company to buy it
back if William Hill likes the value
the banks arrive at.
The stake is unlikely to be cheap
though, with profits improving so
rapidly and William Hills recent
acquisition of online bookie
Sportingbet likely to add to its
value. The valuation process will
finish at the end of this month.
Beyond the performance at
WHO, Playtechs core business, in
which it designs casino, poker and
bingo software for online bookies
like bet365 and PaddyPower, also
performed strongly, capitalising
on the internet gambling boom in
southern Europe.
The Italian and Spanish markets
have recently relaxed regulations,
with gambling proving very
popular in those countries.
Vodafone boss
Vittorio Colao
SHARES in Punch Taverns rose by a
fifth yesterday as the company said
months of negotiations to
restructure its colossal debt pile
were nearing an end.
The company said it had strong
support from many of its biggest
shareholders and creditors for a
new proposal over its 2.4bn debt
pile. The new plans are set to cut
debt servicing costs by almost
500m over the next five years.
Although Punch Taverns remains
profitable, its debt much of which
is secured against the groups assets
have been a big concern for
investors. Punchs debt is made up
of two instruments and payments
towards them have weighed the
company down.
The new plan would see 229m of
Punchs debt written off on one of
the instruments, and deferred
payments on the other.
Punch Taverns
leaps on debt
restructuring
BY JAMES TITCOMB
ONLINE grocer Ocado yesterday nar-
rowed year-end losses from 2.4m to
just 600,000 as it edged ever closer
towards profitability, easing the con-
cerns of long-suffering investors.
Shares in the company, which has
not made a profit since it began trad-
ing thirteen years ago, yesterday
closed up 11 per cent at 115.9p. This
is still well below the 180p charged at
its July 2010 float.
Total sales for the year to
2 December rose 11.4 per cent to
716m and Ocado says it dealt with
140,000 orders in its busiest week of
2012.
However chief executive Tim
Steiner insisted the business, which
largely sells Waitrose products, is a
good bet for long-term returns, in
part thanks to its decision to open a
second distribution centre in
Warwickshire. At the moment all
Ocado orders are processed at one
site in Hatfield, Hertfordshire.
We continued to achieve double
digit sales growth during 2012 with
increasing rates of sales and new cus-
tomer momentum as we moved into
Supermarket
Ocado edges
towards profit
BY JAMES WATERSON
2013, Steiner said. In 2013, we will
continue to improve the attractive-
ness of Ocado to customers and we
shall substantially increase our capac-
ity with the opening of our second
fulfilment centre, creating over 1,000
jobs in the Midlands.
The business, set up by three former
Goldman Sachs bankers, was boosted
last month when former Marks &
Spencer boss Stuart Rose agreed to be
its next chairman.
The company is regularly touted as
a possible bid target for M&S as well
as bricks-and-mortar supermarket
rival WM Morrison, as neither has a
significant online grocery business.
Punch Taverns PLC
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Tim Steiner, one of the founders of Ocado, says the firm will deliver long-term returns
2012 was another difcult year for Ocado. It failed to deliver accelerated
sales growth and it needed to raise money... The debate now moves on to
whether its assets are attractive to either M&S or Morrison and, if so, at
what price?
ANALYST VIEWS

Ocados 2011/12 preliminary results came in broadly in line with our pre-
viously downgraded expectations... Ocado remains an investment story all
about potential rather than delivery, in our view. The next signicant
event is the commissioning of its second customer fullment centre.

Growth this year has been constrained by capacity limitations but the
second Customer Fulllment Centre is on track to open at the end of February
with the implication being that sales growth should accelerate from the
last six week run rate of 14.2 per cent.

ARE YOU HAPPY WITH

OCADOS RESULTS?
PHILIP DORGAN PANMURE GORDON

DARREN SHIRLEY SHORE CAPITAL

CAROLINE GULLIVER ESPIRITO SANTO

L
A
U
R
A

L
E
A
N
/
C
I
T
Y
A
.
M
.
TO the Lord Mayors Mansion House
for JP Morgans eighth biennial
Beacon Awards for Philanthropy.
The Capitalist was pleased to see a
City Philanthropy category intro-
duced this year, especially to hon-
our the Citys unsung
philanthropes.
Sponsored by the City of London
Corporations charity, City Bridge
Trust, three City
Fellowships were
given out to chair
of The Princes
Teaching Institute
Harvey McGrath,
founder of The
Stone Family
Foundation John Stone and a final
award to the founders of the Young
Philanthropy Syndicate.
The 33 Beacon Fellows of 2013 have
collectively donated over 100m to
charitable causes. It is fun giving
away money! chimed Sir Thomas
Hughes-Hallett, who took home a
Beacon gong for Philanthropic
Advocacy.
Sir Thomas
Hughes-Hallett (L)
and Lord Mayor
Roger Gifford (R)
It is hard economic times for
Greece at the moment and thus
everything must go, over at the Greek
embassy. However particularly bad news
for any Greek expats living in London, is
that the swanky Hellenic embassy in
Holland Park is up for sale. The Greek
State Privatization Fund has set a price of
22m for the property and it is also
selling off real estate in
Brussels and Belgrade.
No word on whether
Greek finance minister
Yannis Stournaras
(pictured) will
accept a
discount for
the job lot.
Hot on the heels of winning second
place in the annual Financial Power
list produced by Accountancy Age, public
accounts committee chair Margaret
Hodge was yesterday awarded the far
less glamorous title of Tax Prat of the
Year. Taxation magazine, the publication
dishing out the dubious accolade,
told The Capitalist: David Gauke was
made Tax Personality of the Year in 2011
in recognition of the governments policy
of increasing consultation with the tax
profession in the process of making
legislation. Margaret Hodge seems to be
advocating a diametrically opposite
approach. Apparently the decision to
award the title to Hodge was made with
no hesitation according to the
magazine.
ONLY in the world of rugby would
four elite sportsman take on the
challenge of a pie-eating contest, in
the name of good PR.
And that is what four Saracens
players did this week when they
took part in their own version of
man versus food.
The players scoffed Laverstock
pies, which will be sold at the
teams new north London stadium,
Allianz Park.
Champion pie-eater Matt
Stevens, who swallowed his buffalo
and gravy pie in one minute and 22
seconds, said: Its a massive
achievement and I know that the
guys will be envious of this trophy.
Though I'd recommend eating it a
little slower than I just did.
Saracens rugby players Jamie George (left) and Matt Stevens (right) at Tower Bridge
Saracens and England star Matt
Stevens reigns pie and mighty
Philanthropy in
the City at JP
Morgan awards
16
cityam.com
FRIDAY 8 FEBRUARY 2013
cityam.com/the-capitalist
THECAPITALIST
EDITED BY CALLY SQUIRES
Got A Story? Email
thecapitalist@cityam.com
IN BRIEF
BP bids farewell to Byron Grote
nOil giant BP yesterday said that
senior board member Byron Grote is
to step down, after 33 years with the
company. Grote, who retired as chief
financial officer at the end of 2011, will
resign at the groups AGM this April
after 13 years on the board. Since
joining the energy behemoth in 1987,
the 63-year-old has overseen the
company through a number of
acquisitions.
Wincanton trading in line
nSupply chain firm Wincanton said
yesterday it continued to trade in line
with expectations over the period
from October. Its contract logistics
business performed robustly,
winning several new contracts. It plans
to open three new distribution centres
for retail grocery customers later this
year. Within its specialist businesses,
the records management continued to
perform strongly, Wincanton said.
Total to offload fertiliser units
nFrench oil major Total has received
a firm offer from chemicals company
Borealis to acquire GPN, a wholly-
owned Total subsidiary and Frances
largest nitrogen fertiliser
manufacturer. The Austrian chemicals
and plastic solutions company has
also made an offer to acquire Totals
57 per cent stake in Belgian fertiliser
manufacturer Rosier, for 200 (171) a
share.
Ophir Energy PLC
7Feb 1 Feb 4Feb 5Feb 6Feb
490
480
500
510
520
530 p
475.00
7Feb
FRIDAY 8 FEBRUARY 2013
17
NEWS
cityam.com
FACEBOOK and Google were the
most prolific buyers of private tech-
nology companies in 2012, with the
two web firms splashing out on 16
companies each as tech acquisitions
hit their highest level for years.
Financial data firm Privco revealed
yesterday that acquisitions of private
US technology firms reached
2,357, up from 22 per cent in
the year before, and up 80 per
cent on 2009.
Some of the most high-pro-
file deals included Facebooks
$750m (477m) purchase of
photo-sharing app Instagram
and Googles $100m deal for
social advertising company
Wildfire Interactive.
With Facebook cashing
in on its May flotation
and Google a serial
acquirer, the two were
expected to be top of the
list of buyers. However,
Facebook and
Google top list
of tech buyers
BY JAMES TITCOMB Twitter, which remains private but
has been valued at around $9bn, was
a surprisingly active buyer, making 10
acquisitions the same as network
equipment giant Cisco. Groupon, the
online daily deals website which went
public at the end of 2011, was the
third-biggest acquirer in 2012, mak-
ing 13 deals as the business attempt-
ed to diversify its revenues.
Surprisingly, Barclays was the
most popular adviser on private
technology deals, beating
Silicon Valley stalwarts Morgan
Stanley and Credit Suisse.
Privco said that 2012 was
notable for the return of lever-
aged buyouts, with the junk
bond market returning to life in
2012. The year also saw a large
number of acq-hires acquisi-
tions made to bring in talent,
rather than new business.
Ophir Energy falls on share sale
despite finding gas in Tanzania
SHARES in Africa-focused oil
explorer Ophir Energy plunged
yesterday, as Credit Suisse said it
placed 36m shares on behalf of the
investment funds of investors Och-
Ziff Capital Management and Mittal
Investments.
The shares were sold at a price of
475p per share, raising 171m. Both
institutional shareholders have
agreed to a lock-up period of 90 days
with respect to their remaining
stakes in the exploration group.
Credit Suisse acted as bookrunner
for the placing.
The share sale overshadowed a
BY CATHY ADAMS
positive operations update from the
FTSE 250 explorer, where it
announced the successful results
from its appraisal programme on the
Mzia field in Tanzania.
Ophir, which holds 40 per cent of
the project alongside BG Group that
owns 60 per cent, said that a well
had found gas. The well has now
been suspended so Ophir can start
flow testing.
Overall, we see the operations
update as positive, although not
materially so there is no sign of a
Mzia resource upgrade, analysts
from Deutsche Bank said yesterday.
The share placing takes the gloss off
the Mzia-2 announcement, they
added.
Shares in Ophir closed down 8.57
per cent yesterday at 475p, making it
the biggest faller on the FTSE 250
index.
AFRICAN-focused Afferro Mining
yesterday said discussions had
ended with Indian Jindal Steel and
Power, on the basis that the New
Delhi-based company undervalued
Afferros assets.
Junior stock market-listed
Afferro said that the indicative
offer from Jindal fundamentally
undervalued the companys high
quality, strategically located
portfolio of iron ore projects in
Cameroon and its strong balance
sheet, with approximately $90m
(57m) cash.
Afferro which owns three iron
ore projects in Cameroon
confirmed it was still in talks with
Afferro rejects Jindal as offer
falls short for iron ore project
BY CATHY ADAMS International Mining and
Infrastructure Corporation (IMIC),
as well as a number of potential
strategic partners.
It is understood to be talking to
IMIC regarding a sale of the entire
share capital, and with a number
of others regarding a partnership
to develop the Nkout iron ore
project in the Cameroon.
Whilst the company has
received approaches from a
number of interested parties,
there can be no certainty that a
formal offer will be forthcoming,
Afferro added in a statement
yesterday.
It first announced it was in
discussions regarding a sale in
December.
ANALYSTS from Barclays yesterday
spoke out in support of the Bumi
board strategy, just two weeks
before the boardroom battle that
will decide the coal miners future.
Having spoken to chief executive
Nick von Schirnding, Barclays said
in a note that the strategy being
pursued by the current board and
company is the right one,
reiterating its overweight rating
on the stock.
It added: However, we believe
that their exit out of the Bakrie
relationship, which is less
confrontational, is potentially
achievable and far less costly for the
minority shareholders.
Barclays supports Bumi board
in run-up to boardroom battle
BY CATHY ADAMS
Bumi, which is working on
accelerating the divorce from
Indonesian shareholders the Bakrie
family, will be pitted against co-
founder Nat Rothschild on 21
February.
Rothschild who is proposing a
total board overhaul suffered a
setback earlier this week when the
Institutional Shareholders Services
group announced that investors
should vote against his proposal for
a new board.
However, it is understood to
include several caveats, including
recommending the removal of
Nalin Rathod, as well as Bumi chief
financial officer Scott Merrillees
and Alexander Ramlie, as directors
of the coal miner.
BIGGEST US ACQUISITIONS OF 2012 TOP 3 ADVISERS
US TECH DEALS ON THE UP IN 2012
CISCO BUYING NDS GROUP $5.0bn
SAP BUYING ARIBA $4.3bn
DELL BUYING QUEST SOFTWARE $2.4bn
ORACLE BUYING TALEO $1.9bn
IBM BUYING KENEXA $1.3bn
1
2
3
TOP TEN SECTORS FOR ACQUISITIONS 2012
MOST ACTIVE BUYERS OF PRIVATE U.S. TECH COMPANIES 2012
*RANKED BY NUMBER OF ACQUISITIONS
*RANKED BY NUMBER OF ACQUISITIONS
16
12
10 10
16
SOFTWARE
INTERNET SERVICES
COMMS, NETWORKING & STORAGE
CONSULTING (IT SERVICES)
INTERNET CONTENT PROVIDERS
E-COMMERCE
MOBILE TECHNOLOGY
SECURITY TECHNOLOGY
PAYMENT PROCESSING
MANUFACTURING
200 400 600
Facebooks Mark Zuckerberg
bought 16 tech firms
MINERS Anglo American and
Xstrata got a boost from their
jointly-owned copper mine in
Chile yesterday, as they announced
that the projects reserves had
been hiked by almost a fifth.
The blue chip miners, which
each hold 44 per cent, said that
Collahuasi had 19 per cent more
copper reserves than previously
thought, at more than 9bn tonnes.
Reserves of total contained
copper metal increased by 23 per
cent to around 73m tonnes.
Collahuasi, which produced
284,000 tonnes of fine copper in
2012, is also owned by a Japanese
consortium headed by Mitsui.
Lift for Anglo
and Xstrata
BY CATHY ADAMS
FRENCH pharmaceutical giant
Sanofi said yesterday that its
earnings could fall this year as it
continues to feel the effects of
expiring patents.
Sanofi, which saw earnings slide
last year as cheaper generic rivals
grabbed market share from some
of its medicines, said 2013 earnings
would be flat to five per cent lower
than in 2012.
The market was not expecting a
decline this year, said Natixis
analyst Philippe Lanone.
Sales trends are encouraging,
but the 2013 earnings per share
forecast is disappointing.
Sanofi shares, which have gained
Sanofi stock slides as it reveals
bleaker than expected outlook
BY CITY A.M. REPORTER
about 25 per cent in the last twelve
months, closed down nearly four
per cent yesterday.
Business net income, which
excludes items such as
amortisation and legal costs,
declined 24.3 per cent to 1.57bn
(1.34bn) in the fourth quarter.
The fall would have been even
steeper without a favourable tax
rate in the quarter, analysts said.
Sales rose 0.2 per cent to 8.53bn
as the impact from austerity
measures in Europe and generic
competition offset favourable
currency moves and growth from
rare disease unit Genzyme.
The impact from government
cutbacks on Sanofis earnings last
year totalled 300m, it said.
NEW US jobless claims fell slightly
in the final week of January,
according to data out yesterday.
New unemployment insurance
applications were 366,000 in the
week ending 2 February, according
to the seasonally-adjusted measure,
the Department of Labor said,
down 5,000 on a week earlier.
But the level remained within
touching distance with the number
of claims made in the same week a
year ago 371,000 suggesting the
labour market still hasnt made a
full recovery almost five years after
the depths of the recession.
And total insured unemployment
data out yesterday, for the week
ending 26 January, showed a yet
less encouraging picture, with the
balance edging up 8,000 to
3,224,000. However, this figure
also seasonally adjusted was some
295,000 lower than the during the
equivalent period last year.
This came as separate figures out
yesterday revealed the fourth
quarter saw the biggest
productivity crash amongst non-
farm workers for two years.
Productivity slumped at a two
per cent annualised rate, well
above forecasts of around 1.3 per
cent, the Department of Labor said.
Jobless claims
still high in US
after recession
BY BEN SOUTHWOOD
THE PROPORTION of households
that are owner occupied has
slumped to its lowest level in 25
years, according to government data
published yesterday, with more peo-
ple locked into the rental market.
Just 65.3 per cent of dwelling were
lived in by their owners in 2011/12,
down from 66 per cent the previous
year and a peak of 70.9 per cent
back in 2003.
The last time the level was lower
was in 1987, when it was recorded at
64.6 per cent.
In recent years the proportion of
households that are privately rented
has jumped, from 10 per cent at the
turn of the millenium, to 17.4 per
cent by 2011/12.
The numbers and proportion of
households living in the private
rented sector have been rising in
recent years, and in 2011/12 were at
the same level as in the social sector,
3.8m households, said the report,
Level of home
ownership at
a 25 year low
BY JULIAN HARRIS
which was compiled by the
Department for Communities and
Local Government (DCLG).
In 1980, before the effects of the
right to buy scheme introduced by
Margaret Thatchers Conservative
government had kicked in, there
were three million more social
renters than private renters.
Back then, nearly a third (31.4 per
cent) of households were in the
social rented sector, while only just
over half (56.6 per cent) were occu-
pied by their owners.
According to the latest figures for
2011/12, nearly two-thirds (64 per
cent) of households in the social
rented sector are in receipt of hous-
ing benefit, compared to around a
quarter (26 per cent) of those in the
private rented sector.
The cost of rent has continued to
increase in recent years. The DCLG
said that the mean average rent in
the private sector was 164 per week,
up from 153 in 2008/09. Social rent
came in at 83 a week.
Trade gap narrows as 2012 ends
due to 769m export increase
THE UKS trade deficit narrowed
from 3.6bn in November to
3.2bn in December, according to
data out yesterday.
The overall narrowing was
driven by a 769m 1.9 per cent
jump in exports, the Office for
National Statistics (ONS) said,
outweighing a 393m bump to
imports.
But this end of year
improvement could not outweigh
a year of broad export
contraction. Exports were
120.7bn in the fourth quarter in
BY BEN SOUTHWOOD
total, 1.5 per cent down on the
122.5bn sold in the third quarter.
Similarly, exports were down
around 6bn to 487.1bn through
the whole of 2012, the ONS data
showed, in comparison to the
493bn shifted in 2011.
The longer-term picture was
equally downbeat. Exports have
grown at 4.8 per cent per year
between 2002 and 2012, the ONS
said, while even excluding oil,
imports have grown at around 5.1
per cent over that period.
Still, firms are optimistic that
the current improvement can
translate into a steadier upward
movement, according to separate
data from DHL and the British
Chambers of Commerce.
Optimism over exporters future
turnover and profitability is at a
two-year high, DHL and the BCC
said regarding their survey of
1,500 companies.
Its encouraging to see Britains
exports continue to grow thanks
to the ambition and talent of UK
businesses, despite the continued
challenges they face, said BCC
director general John Longworth.
This optimism is a true reflection
of the businesses I visit week in,
week out, across the UK.
Boom in vacancies in January
brings hope for the unemployed
THE EMPLOYMENT boom was still
continuing apace in January,
according to figures released this
morning.
Both temporary and permanent
jobs were being added during the
first month of 2013, KPMG and
the Recruitment and Employment
Confederation (REC) said, while
vacancies were also on the up.
Temporary billings increased
for the sixth month in a row, the
two bodies said, with a seasonally-
adjusted index value running at
55.5 up from 54.8 in December,
and further above the crucial 50
BY BEN SOUTHWOOD
value that indicates no change.
Permanent job appointments
were increasing slightly more
slowly, with an index at 53.2, but
this figure was still enough to
suggest substantial improvement
in already-booming employment.
And demand for further staff
was still improving, despite firms
already absorbing new staff. The
KPMG/REC vacancy index edged
from 56.9 in December to 57.0 in
January, indicating rapid
improvement.
The index for permanent
private sector roles soared from
57.7 to 61.1, suggesting firms are
adding to vacancy listings at a
breakneck speed.
Amid the doom and gloom
caused by predictions of slow
growth, the hiring figures for
January should give employers and
employees plenty of reasons to be
cheerful, said Bernard Brown at
KPMG.
Demand for staff is at its highest
peak for almost two years meaning
that employees who may have been
too nervous to change jobs in
recent months, might consider the
benefits of a fresh challenge.
THE UK is set to stay stuck in a
growth plateau for a further
three months, according to
forecasts released yesterday.
GDP will stay completely flat
during the first quarter of 2013,
the National Institute of
Economic and Social Research
(NIESR) said, quashing hopes the
economy would reverse some of
the decline suffered in the final
three months of last year.
Over the whole of 2013, the UK
economy will grow just 0.7 per
cent, the think tank said, and
Think tank says UK will see no
growth in first quarter of 2013
BY BEN SOUTHWOOD GDP will still be expanding at the
below-trend pace of 1.4 per cent
in 2014, six years after the UK
first plunged into recession.
NIESR says its estimates tend
to come out very close to the
first estimate of GDP, a fact that
will worry chancellor George
Osborne, who has presided over
years of bumpy growth since he
took up his position in 2010.
In all other 20th century
recessions, by this point after the
crash, GDP was at least two per
cent above the pre-crisis peak
currently the UK is still well-over
three per cent below peak.
For more jobs information go to

THE FORUM: Page 23

FRIDAY 8 FEBRUARY 2013
18
NEWS
cityam.com
Chancellor George Osborne will face public pressure if GDP continually fails to grow
INDUSTRIAL production crashed
in Spain, over the year to
December, but recovered in
Germany during the same
month.
Spanish industry produced 8.5
per cent less in December than it
did a year before, according to
data put out by its official
statistical body, INE, yesterday.
This was worse than November,
when production was down
seven per cent compared to the
year before.
By contrast, Eurozone
economic powerhouse Germany
managed to increase its
industrial output during the
Spanish industry collapses as
German factories bounce back
BY BEN SOUTHWOOD final month of 2012, despite a
decline in November, and despite
the crushing Eurozone crisis.
Output was up 0.3 per cent
over the month, Destatis
revealed yesterday equivalent
to a 3.7 per cent expansion if
extended over a year a
turnaround after the 0.2 per cent
decline suffered the month
before.
However, the construction
sector was not faring as well,
with a monthly decline
plummeting some 8.9 per cent in
just a month a figure which
would amount to 178.2 per cent
if it were stated in annualised
terms, as is commonly used for
US statistics.
THE INDUSTRIAL decline that
made a big contribution to last
quarters fall in GDP was even
bigger than originally estimated,
according to data out yesterday.
Industrial production was 1.9
per cent lower in the fourth
quarter of 2012 than in the third,
according to data from the Office
for National Statistics (ONS).
This was the largest quarter-on-
quarter fall for 17 quarters and a
0.1 percentage point increase
compared to the estimates used in
preparing the first guess at GDP.
But yesterdays figures also
revealed that Decembers output
represented a 1.1 per cent jump on
November.
Industry slump
gets deeper
BY BEN SOUTHWOOD
FINANCIAL education will be
taught in all schools by 2014,
under plans put out for
consultation yesterday by
education secretary Michael Gove.
The new national curriculum
will include basic household
matters such as budgeting, as well
as wages, taxes, debt, financial
risk and a range of more
sophisticated financial products
and services.
However Gove has dropped
plans unveiled in September to
completely replace GCSEs with a
new baccalaureate, and will
instead reform the existing
system.
CITYAMCAREERS.com
Finance lessons
on curriculum
BY JAMES WATERSON
THOMAS Cook came out best in yes-
terdays slew of travel company
updates, though a shareholder rebel-
lion over executive pay cast a cloud
over its turnaround efforts.
The worlds oldest travel firm man-
aged to narrow its quarterly operating
losses to 69.8m, from 91.1m a year
earlier.
But its sales figures took a knock
over the winter, with revenues down
7.4 per cent to 1.7bn for the final
three months of 2012.
As part of its recovery plan, Thomas
Cook has reduced its net debt by
86m to 1.56bn over the last year,
and it expects to cut costs by a further
60m.
Shares closed up 19.5 per cent at
85.5p yesterday.
Despite new chief executive Harriet
Greens progress, 29.7 per cent of
investors refused to back Thomas
Cooks remuneration report at yester-
days shareholder meeting.
Green is entitled to an annual salary
of 680,000 for 2012, with a maxi-
mum annual bonus worth 225 per
cent of salary.
Meanwhile Tui Travel, operator of
Tui and Thomas
Cook pare back
winter losses
BY MARION DAKERS
the Thomson and First Choice brands,
also impressed investors yesterday
with an upbeat forecast for the sum-
mer, in spite of operating losses
mounting in the quarter to the end of
December.
The firm posted an underlying oper-
ating loss of 116m as revenues fell
four per cent to 2.7bn, mostly driven
by currency movements.
Customer numbers fell three per
cent on a year ago to 3.57m during the
period, but sales of specialist holidays
rose five per cent to 254,000.
The firm expects to deliver full-year
profits at the top end of its guidance.
We are pleased to report that our
strong trading momentum has contin-
ued with particularly encouraging
growth in the UK and Nordics, said
chief executive Peter Long.
UK selling prices for the summer are
up four per cent as holidaymakers
plump for more expensive trips. In
France, however, Tui has cut capacity
by a third.
And Stena Line yesterday posted
record passenger numbers for its
North Sea ferry services, though traf-
fic on its Calais services dropped 6.6
per cent. Stena Line pinned the blame
for the fall on the Olympics.
L
A
U
R
A

L
E
A
N
/
C
I
T
Y
A
.
M
.
Thomas Cook boss Harriet Green and Tui chief Peter Long are fighting for customers
AVIATION watchdogs have
pinpointed the origin of a battery
fire that caused a 787 Dreamliner
into an emergency landing last
month, and said tests on Boeings
new planes may have misjudged
the risk of fire.
The US National Transportation
Safety Board said yesterday it is still
investigating the underlying cause
of the smoke event.
But it noted that Boeings tests
on the 787 failed to properly
estimate the degree of risk caused
by the lithium ion battery.
All 50 Dreamliners in use have
been grounded since 16 January.
Boeing missed
787 battery risk
BY MARION DAKERS
FRIDAY 8 FEBRUARY 2013
19
NEWS
cityam.com
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ON SALE
NOW
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BREWING COMPANY
Compass grows as
its chairman retires
COMPASS Group, the worlds
biggest catering firm, yesterday
posted a six per cent rise in first-
quarter organic revenue, as
contract wins in North America
and emerging markets helped
temper tougher conditions in
Europe.
The firm, which operates in over
50 countries and serves 4bn meals
a year, said its large Ascension
Health multi-service contract in its
core North American market had
contributed over one per cent of
BY CITY A.M. REPORTER
global sales in the period, while
levels of new business wins in the
region was also healthy.
Like for like revenue was positive
in North America a business
worth almost half of group
revenue as well as in emerging
markets. In Europe, where it has
reduced its southern operations
and is cutting costs, underlying
revenue was negative.
Compass also announced that its
chairman Roy Gardner is to retire.
Shares in the FTSE 100-listed
company closed up 1.8 per cent at
779.50p yesterday.
IN BRIEF
Fastjet says it owns Fly540 name
n Fastjet, the African budget airline
backed by easyJet founder Stelios Haji-
Ioannou, yesterday said it was sole
owner of the Fly540 brand, following a
dispute over its ownership. This follows
a statement from Five Forty Aviations
chief executive Don Smith on
Wednesday saying his company owned
the Fly540 brand and had withdrawn
the licences it had granted to Fastjets
operations to use the brand in Angola,
Ghana and Tanzania.
Dairy Crest looks for growth
n Milk, cheese and butter supplier
Dairy Crest Group said yesterday it is
working to restore profitability as its
sales grow in the mid-single digits. The
firm, which last year agreed to pay
farmers more for their milk, said it
intends to restructure its balance sheet
and has no plans for acquisitions.
Shares in the FTSE 250 group fell 3.3 per
cent to 408p.
National Express wins in Germany
n National Express has won two rail
franchises in Germany worth a total of
1.6bn (1.4bn). The British firm will
operate routes serving North Rhine-
Westphalia for 15 years starting in 2015.
National Express operates the c2c
franchise in the UK and coach services in
Spain, but has ambitions to spread into
Europe, with bids in for three more
German contracts.
JAPANS Fujitsu expects to post an
extraordinary loss of 170bn
(1.16bn) this business year due to
the one-time costs of reorganising its
microchip business and writing
down the value of its European IT
services arm.
Fujitsu and Panasonic said
yesterday they are combining their
struggling LSI chip units, which
produce highly-customised chips
used in a range of consumer
electronics, confirming earlier
reports.
As part of the reorganisation,
Fujitsu plans to cut around 5,000
positions and transfer 4,500 staff
into the new chip venture.
Fujitsu and Panasonics LSI chip
businesses, which produce highly-
customised microchips used in a
range of consumer electronics
including TVs and digital cameras,
have fallen far behind aggressive
South Korean rivals.
Japans largest computer maker
also cut its annual dividend forecast.
Fujitsu expects its operating profit
to reach more than 200bn in its
2015 financial year.
Yesterday it posted a 65.2 per cent
drop in operating profit to 3.57bn
for the nine-month period through
December over the same period a
year ago.
Fujitsu to post
loss as it rejigs
microchip arm
BY CITY A.M. REPORTER
SONY has announced a dramatic fall
in losses, and said it expects to post
an annual profit for the first time
since 2008 later this year.
A combination of a weak yen and
cost cutting meant losses in the final
three months of 2012 were down to
10.7bn (72.8m), compared with
158.4bn in the same period last year.
Although this brought losses for
the nine months of Sonys financial
year to date to 50.9bn, the company
said it expects a profit in its final
quarter to lead to an annual profit of
20bn. This follows four consecutive
years of losses for the Japanese tech-
nology firm, which has lost sales as
consumers tighten their belts, and as
global sales of televisions and digital
cameras have fallen.
A weak yen, which came in antici-
pation of the money-printing Liberal
Democrat party taking power in
Decembers elections, has boosted
troubled Japanese firms such as
Sony, Sharp and Panasonic, with
Sony to put end
to four year loss
as yen weakens
BY JAMES TITCOMB
their products relatively cheaper for
Western consumers in the run up to
Christmas.
A dollar bought 81 during the
quarter, compared with 76 a year
previously, Sony said. The currency
has continued to wane since, with a
dollar now buying around 94.
If this weak yen rate persists it
should provide us with a big upside,
chief financial officer Masaru Kato
said. Sony chief Kazuo Hirai has refo-
cused the company on its core con-
sumer businesses, with a new
PlayStation console due this year.
Sony Corp
7Feb 1 Feb 4Feb 5Feb 6Feb
1,350
1,400
1,450
1,500
1,550
1,600 1,519.10
7Feb
HOUSEBUILDER Bellway said
yesterday demand for its
properties is rising, helped by
new sales outlets and the
governments NewBuy mortgage
scheme for first-time buyers.
The firm said it completed
sales on 2,597 homes in the six
months to the end of January, a
rise of 5.8 per cent on last year.
The average price has also risen
2.3 per cent to 187,000 as
Bellway builds on higher margin
land snapped up during the
financial crisis.
Bellway has spent a further
Mortgage aid schemes help
housebuilder Bellway grow
BY MARION DAKERS
145m on land during the period,
agreeing heads of terms on
around 4,500 plots.
The NewBuy and MI New Home
mortgage indemnity schemes
have boosted demand for its
houses, Bellway said, and helped
lift its weekly reservation rate
from 89 to 97.
These programmes now
account for 11 per cent of
deposits taken by Bellway.
The firm is upbeat for the
coming year, forecasting five per
cent sales volume growth.
Shares in FTSE 250-listed
Bellway closed up 3.5 per cent at
1,161p yesterday.
FRIDAY 8 FEBRUARY 2013
20
NEWS
cityam.com
First-time buyers have been using NewBuy to gain access to mortgages
RWC
The investment management
firm has appointed Dan
Mannix as chief executive.
Mannix joined in 2006, and
has been a senior member of
the management team. He
previously spent five years as
head of wholesale at JP
Morgan.
Fladgate
The commercial law firm has announced the
appointment of Charles Proctor as partner. He will
advise large financial institutions on a range of
financial services and banking issues. He has 30 years
experience, and was previously a partner at Edwards
Wildman Palmer.
CVC Credit Partners
The asset management and investment group has
announced two new hires. Mark DeNatale will join the
firm as senior portfolio manager and global head of
trading. He was most recently at Goldman Sachs,
where he was a managing director and head of loan
trading. Scott Bynum joins as managing director and
portfolio manager. Bynum was previously a vice
president in Goldman Sachss bank loan distressed
investing business.
Baker Botts
Alex Mason has been hired to the London-based
outsourcing practice as special counsel. He has over
20 years legal experience, and most recently worked
at Baker and McKenzie. Mason was also previously
director of legal services for outsourcing at Accenture.
Towers Watson
The professional services company has hired Asghar
Alam as a senior consultant in its investment and
retirement businesses. Alam has over 30 years
experience consulting on strategy development and
financial management, most recently as a senior
partner at Mercer.
Kinetic Partners
Julian Korek will join the financial services industry
advisory as chief executive. Korek has over 20 years
industry experience. Prior to joining Kinetic, he was at
RSM Robson Rhodes for 15 years.
Chadbourne and Parke
The law firm has hired Jose Prado as partner in its
mergers and acquisitions, energy, and finance
practices. Prado has over 10 years experience
working as an energy lawyer.
WHOS SWITCHING JOBS Edited by Annabel Palmer
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
CITY MOVES
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in association with
COCA-COLA Enterprises earnings
fell 11 per cent in the fourth
quarter as Europes largest Coca-
Cola bottler faced restructuring
costs.
The Georgia-based company
reported net income of $100m
(63.7m), or $0.34 per share for the
fourth quarter, down from $113m
or $0.36 per share in the fourth
quarter of 2011.
Excluding items, comparable net
income for the quarter was $131m
or $0.45 per share, compared to
$116m or $0.36 per share a year
earlier.
The firm forecast per-share
earnings would rise 10 per cent,
with sales growing in a mid-single
digit range in the new year, despite
economic pressures in Europe.
Earnings dip at
Coca-Cola firm
BY JENNY FORSYTH
ARTIFICIAL joints maker Smith &
Nephew yesterday said emerging
markets would help counter slow
European and United States trade in
2013, as it posted a drop in fourth-
quarter profits after rivals new
products hurt its knee implant
business.
The group posted revenue of
$1.08bn (688m), slightly down on a
year ago, trading profit of $272m,
down from $279m, and adjusted
earnings per share were 21.6 cents,
down from 21.9 cents in the fourth
quarter.
Analysts were expecting revenue
of $1.07bn, trading profit of $260m
and adjusted earnings per share of
20.4 cents, according to a company-
compiled consensus.
Having cut jobs and reorganised
Smith & Nephew counting on
emerging markets for growth
BY CITY A.M. REPORTER
to reduce reliance on those slower
markets, the company saw
emerging market sales deliver 14
per cent growth against just one
per cent in the US and two per cent
in Europe while revenue in China
rose 30 per cent.
We expect the market
conditions seen in 2012 broadly to
continue in 2013, the firm said.
The fourth-quarter results beat
market expectations on both the
top and bottom line, and shares
closed up 0.7 per cent at 701.5p.
Chief executive Olivier Bohuon
said he did not expect business to
improve in the United States and
Europe, where the market for
replacement knees and hips has
been weak for a number of years.
Patients in the US in particular
have been skipping non-essential
operations for cost reasons.
NORWEGIAN oil major Statoil will
ramp up spending this year to
$19bn (12bn), as it eyes the
completion of around 50 wells in
2013.
The state-controlled group said
yesterday that it would lift its
capital spending to an average of
$21bn in 2013-16, compared to an
investment of $13.7bn in 2010.
The high spending will lift
Statoil's production from 2m
barrels of oil equivalent a day in
2012 to more than 2.5m a day by
2020, with almost all of the
increase coming from fields
outside its traditional base in
Norway.
Having already undertaken an
aggressive expansion of its
exploration interests abroad,
Statoil hikes investment as it
eyes ramp-up in exploration
BY CATHY ADAMS Statoil aims to boost investments
to record highs through 2016,
bringing new fields into
production from Brazil and East
Africa to the North Sea, and
drilling more wells than ever
before as oil prices sit comfortably
over $115 per barrel.
Statoils exploration efforts paid
off last year, as it posted an eight
per cent jump in production to
2bn barrels oil of equivalent a day,
up from 1.9bn in 2011.
Over the fourth quarter, Statoil
logged adjusted earnings of 48.3bn
Norwegian krone (5.57bn), ahead
of expectations and up from
45.9bn in the fourth quarter of
2011.
On the back of better-than-
expected earnings it raised its
dividend from 6.5 Norwegian
krone to 6.75 per ordinary share.
FRIDAY 8 FEBRUARY 2013
21
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LONDONREPORT
T
HE FTSE 100 fell sharply
yesterday as traders took profits
on an index that has
outperformed Europe this year,
with banks leading losses after
comments by key policymakers.
The FTSE 100 closed down 66.92
points, or 1.1 per cent, at 6,228.42, lag-
ging major European peers.
The index has been the stand-out per-
former in Europe since the start of
2013, having seen its best January
since 1989, and was ripe for profit tak-
ing, traders said.
We havent managed to break
through 6,300 and hold it. I think its
just down to profit taking, said
Darren Easton, director of trading at
Logic Investments. I think 6,300 is
becoming a bit of a sticking point.
Since posting its biggest one-day fall
in three months on Monday, the index
has failed to close above 6,300 all week.
However, the FTSE has gained five
per cent so far this year, compared to
slight falls year-to-date on the German
DAX and the French CAC.
Banks were among the biggest fallers
yesterday, with the sector dropping 1.6
per cent after Bank of England gover-
nor-designate Mark Carney outlined a
tougher line on the sector.
He came across as much more
aware of the need to be more interven-
tionist in banking matters ... I think its
prescient, I think its right, but banks
will see the ability to grow revenues
switched off, Gerard Lane, equity
strategist at Shore Capital, said.
Carneys use of anti-free market
tools make it a very different ball
game, and the banks in the UK are
going to struggle.
Carney also reaffirmed his faith in
flexible inflation rate targeting during
an appearance before MPs, pouring
cold water on nominal GDP targeting
which he had previously floated as an
alternative.
Nominal GDP targeting would justify
higher inflation rates while growth
was below target. Sterling rose after
Carney showed little bias towards
immediate looser monetary policy,
wrongfooting many investors who had
expected him to be more dovish.
One such firm hit by changing oper-
ating realities was Burberry Group,
which was the worst-performing blue-
chip stock, tumbling 4.6 per cent.
Rival luxury goods companies also
fell as traders cited a Chinese advertis-
ing ban on certain expensive gift items
as hurting the sector, undermining
the assumption that strong demand
from rich emerging market con-
sumers could help support sales.
However, mobile phone operator and
market heavyweight Vodafone provid-
ed basic support to the market. It rose
0.9 per cent, bolstering the FTSE 100
index by 3 points alone, after the
group maintained its outlook for the
year and analysts expected the firm to
dodge earnings forecast cuts, despite
weak third-quarter sales.
FTSE weighed
by banks and
luxury goods
CITY
YOUR ONE-
STOP SHOP
BROKER VIEWS AND
MARKET REPORTS
FTSE
7 Feb 1 Feb 4 Feb 5 Feb 6 Feb
6,260
6,280
6,300
6,240
6,320
6,340
6,360
6,228.42
7 Feb
DASHBOARD
US stocks drop
on fears over
euros outlook
U
S stocks declined yesterday,
taking a step back from their
recent advance, prompted by
comments by the ECB
president on the euro and Europes
outlook.
The euro currency dropped against
the safe-haven dollar and yen,
spurring a retreat from risky assets
such as stocks, after European Central
Bank president Mario Draghi said the
exchange rate was important to
growth and price stability. Investors
took that as a sign the bank is con-
cerned about the euros advance and
its effect on the regions economy.
Growth sectors were among the
weakest performers on the S&P 500:
the S&P 500 materials index was
down 0.6 per cent while the S&P ener-
gy index was down 0.5 per cent.
Housing stocks also declined, with a
housing sector index off 1.4 per cent.
Despite the days decline and weak-
ness earlier this week, the stock mar-
ket has been in an almost
uninterrupted rising trend for most
of the year, with the S&P 500 up 5.8
percent so far for 2013.
Many analysts say some weakness at
this point is no surprise.
Given the amount the market
moved in January, having a little bit of
a pullback and some consolidation...
would be a healthy sign, said Eric
Marshall, of Hodges Capital
Management in Dallas.
Top US retailers reported strong
January sales after offering discounts
that drew in shoppers facing a hit to
their take-home pay from higher pay-
roll taxes. But an index of retailers
was down 0.3 per cent.
The Dow Jones industrial average
was down 42.47 points, or 0.30 per
cent, at 13,944.05. The Standard &
Poors 500 Index was down 2.73
points, or 0.18 per cent, at 1,509.39.
The Nasdaq Composite Index was
down 3.34 points, or 0.11 per cent, at
3,165.13.
BESTof theBROKERS
LANCASHIRE HOLDINGS
Lloyds of London insurer Lancashire has been upgraded to add by Nick Johnson
of Numis, with a target price of 915p. He points out the FTSE 250 company has a
trend to pay out 100 per cent of earnings. He sees room for an improved return on
net assets thanks to a more leveraged capital structure and improved risk adjusted
underwriting returns in 2013.
BP MARSH
Barry Cornes at Panmure Gordon has downgraded insurance investment vehicle BP
Marsh to hold after it hit his 130p target price earlier this week. BP Marshs shares
have risen substantially after it admitted being in talk over the possible sale of its
13.8 per cent stake in Hyperion but Cornes points out there remains uncertainty
over the outcome of the discussions and no deal has been signed.
EASYJET
Nomuras Andrew Evans has retained his buy recommendation on easyJet but
increased the target price from 913p to 1020p. He insists the company, which is on
the cusp of inclusion in the FTSE 100, can keep growing. We see Easyjet as having
embarked upon a process of self improvement that keeps the momentum in the
business going with a constant drive to find new areas of development, he said.
NEW YORK
REPORT
ICAP PLC
1 Feb 4 Feb 5 Feb 6 Feb 7 Feb
p 370
360
350
330
340
352.80
7 Feb
BP Marsh and Partners PLC
1 Feb 4 Feb 5 Feb 6 Feb 7 Feb
p 132
130
128
124
126
124.50
7 Feb
EasyJet PLC
1 Feb 4 Feb 5 Feb 6 Feb 7 Feb
p 990
980
970
940
950
930
960
958.50
7 Feb
W
E LIVE in extraordinary
times. Robots are cleaning
floors, accompanying
soldiers into battle and
just starting to drive our
cars. Artificial intelligence is turning
phones into personal assistants. The
internet is connecting more of us
than ever, in more ways than ever. For
all the economic gloom, remarkable
technologies are transforming our
lives for the better every day.
Sometimes, the true scale of that
change can be hard to process. Here
are three examples that help remind
me of how familiar business models
are being torn up and reimagined.
THINK OUTSIDE THE OFFICE
It has been seven years since Don
T
HERE is a scene near the
beginning of the film
Casablanca when a crime takes
place. In response, the chief of
police commands, Round up
the usual suspects! He knows this will
not reveal the culprit. Doubtless, his
staff know too. Everybody knows. But
at least he can say he is taking action.
The response to the horrific events at
Stafford Hospital is not wholly differ-
ent. David Cameron has announced
that a chief inspector of hospitals is
going to be appointed. Robert Francis
QC, the author of the report into the
scandals at Stafford, made no fewer
than 290 recommendations. All this
might be convincing if we had not been
here many times before. Ever since the
NHS was created by the most left-
wing minister in the post-war Labour
government there have been serious
problems, followed by reforms that
were meant to solve everything.
In the 1970s, one government
thought that re-organisation recom-
mendations by the management con-
sultancy McKinsey would make things
better. More recently, the introduction
cityam.com/forum
We perform badly by
most measures breast
cancer survival, MRI and
CT scanners per capita
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

22
FRIDAY 8 FEBRUARY 2013
JAMES BARTHOLOMEW
There are alternatives to the NHS
but we must face up to its failure
of professional management was
going to improve it. Then targets were
the answer. In fact, targets were part of
the reason why Stafford treated its
patients so badly. I remember speaking
to a surgeon who was incandescent
after a weekend in which he had been
instructed to operate on people with
minor problems. Others who had just
broken their hips lay in great misery
and discomfort and had to wait until
Monday. Why? To meet targets.
Over the past year and a half, I have
visited 11 countries, looking at their
welfare states. I was trying to discover
the best possible healthcare system. I
would not claim to have found the per-
fect answer, but one thing is clear: the
NHS is not it. In fact, the NHS has
claims to being the worst healthcare
system in the advanced world.
If you look at most measures, the UK
comes out badly. Breast cancer survival
rates? One of the worst. Colorectal can-
cer survival rates? One of the worst
again. Number of MRI scanners per
capita? One of the lowest. Number of
CT scanners? Same again. The OECD
did a study to work out which of its
member countries got the best health-
care in relation to the amount of
money spent. The British NHS was one
of the worst. It is not even good value.
There is no need to reform the NHS. It
needs to be abolished. I mean no disre-
spect to the doctors, nurses and others
in the NHS, who work in extremely dif-
ficult conditions. Their efforts are all
the more admirable given that they
persist in discouraging circumstances. I
also dont mean that nothing should
replace the NHS. International evi-
dence shows that there is an array of
alternatives we could use instead.
Britain could have a social insurance
system like most of western Europe
or a health savings system, or a combi-
nation of the two. In any case, there
should be an element of competition.
The essential flaw is the fact that the
NHS is a monopoly. When providers
know you might take your custom else-
where, they shape up. That is what is
lacking. Choice and competition exist
in practically every other system in the
advanced world. In the Netherlands
and Switzerland you can choose your
insurer. In France, you can choose your
doctor and can go straight to a consult-
ant without visiting a GP. In Singapore,
everybody has a health savings account
and can use the money in it to pay for
their healthcare.
People will say that the British love
the NHS. It even featured in the
Olympics opening ceremony. In reality,
this love is skin-deep. I once took part in
a BBC Radio 4 programme in which I
advocated the abolition of the NHS.
When I told others I was doing this,
they were surprised and some were
shocked at first. But then they would
pause and say something like, Actually
I remember when my father was in
hospital. He was left alone for hours,
disoriented and ignored.
During the programme itself, I was
challenged by experts in the studio and
members of the public phoning in.
Afterwards, the producer looked aston-
ished as he told me that the calls and
texts had broken clearly in favour of
people agreeing with me.
The deaths at Stafford were not an
aberration. They were the tip of an ice-
berg. Most NHS deaths, such as cancer
treated too late or with out-of-date
drugs or not at all, go unrecorded. How
many people have to die unnecessarily
before we accept that the NHS a state
monopoly is inherently a bad system?
For the sake of those we love and for
ourselves, it must go.
James Bartholomew is author of The
Welfare State Were In, which is to be repub-
lished later this year.
Tapscott and Anthony Williams
published Wikinomics, but the power
of crowdsourcing is just beginning to
reveal itself. Utterly inverting the
model of the firm, where you must
hire and exclusively retain the
services of the best people you can,
crowdsourcing looks outward and
offers up problems to be solved
piecemeal by anyone, anywhere.
Powered by the connectivity of the
web, this counterintuitive approach
produces remarkable results and
radical price points. 99designs
provides cut-price logo design
contests; Duolingo teaches languages
for free by using lessons to provide
translation services for third parties.
FROM DROUGHT TO DATA-FLOOD
Certain businesses, notably
publishers, have honed themselves to
produce products that match
customer demand, in a low-data
environment, on the basis of
minimal feedback. It is a challenge
that requires high levels of skill and
sensitivity, effectively reading the
minds of readers. But now Kindles
and web analytics can provide huge
quantities of detailed data on what is
read and how. The skills needed to
exploit this information, to iterate
products, and to adapt to the market
signals made visible, are wholly
different. The businesses that rise will
be the ones that recognise how this
changes their priorities, as
demonstrated by tiny X5 Music. Just a
decade old, it has soared up the
digital music charts, partly by letting
sales data drive track selection.
MASS PERSONALISATION
The age of millions of cheap identical
widgets from China is fading. New
approaches are allowing products to
be individualised on a mass scale.
When something is made on a 3D
printer, there is no difference in cost
between making personalised
versions or identical ones it is just a
question of uploading the right file.
London-based Makies, for instance,
3D prints dolls with uniquely tailored
facial features. And exciting as 3D
printing is, it is by no means the only
technology driving the trend to the
custom-built. Efficiencies allowed by
store-free web businesses with global
shipping open up new possibilities, as
for Indochino. It will send a
tailormade suit to anywhere in the
world for less than 250.
This is an age of terror and wonder.
To thrive and survive, you need to see
what is breaking apart and make the
most of the once-unimaginable
opportunities rising into view.
Marc Sidwell is managing editor at
City A.M.
THE LONG
VIEW
MARC SIDWELL
Three technological earthquakes are breaking up businesses for the better
In association with
AND BRI
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23
FRIDAY 8 FEBRUARY 2013
Labours legacy
[Re: Why Labour is the natural party of
small business and entrepreneurs,
Wednesday]
Chuka Umunnas ideals might be great, but
he has incredible chutzpah to trumpet
Labours credentials for helping small
business. The last Labour government
presided over a massive increase in the size
of the public sector, providing a disincentive
for people to be entrepreneurial. It
clobbered long-term tax-efficient
retirement savings by removing tax breaks
on pension fund dividend income. It
presided over an ongoing trade deficit,
spent so much on welfare benefits, and did
nothing to curb excessive borrowing by
individuals and ridiculous lending by banks.
Finally, it left the economy in recession and
the nation with massive debts. What exactly
should small businesses be grateful to
Labour for? Its perhaps time Umunna
invented New New Labour: less spending,
lower taxes, incentives to support exports,
and for the party to ensure that all parts of
the country benefit.
WilliamComet
[Re: We will have to save far more as
investment returns dwindle, Wednesday]
In Australia, all full-time employees have to
contribute 9 per cent of their salary to a
defined contribution pension scheme.
Whether UK politicians have the foresight to
do something similar here still remains to be
seen.
SeanSmith
T
HE government announced
yesterday that GCSEs will not
be scrapped. The good news is
that the exams will be
significantly reformed,
reflecting the need to raise standards
for every pupil while pushing the
most able. And its not before time.
Having taken GCSEs myself, I
remember how repetitive and boring
they were. Filled with multiple
choice questions, or the opportunity
to provide at most a six-line answer
mentioning key words, it often felt
like the exams were simply going
through the motions.
GCSEs need a radical overhaul. Over
the past decade, pass rates have risen
exponentially. Even shadow educa-
tion secretary Stephen Twigg admits
that there is grade inflation in the
system. But while GCSE results have
reached record levels, this achieve-
ment has not been matched in inter-
national league tables.
According to international compar-
isons by the Programme for
International Student Assessment
(PISA), between 2000 and 2009, 15
year-olds in England fell from seventh
in the world to twenty-fifth in read-
ing, from eighth to twenty-eighth in
maths, and from fourth to sixteenth
in science. A yawning gap has opened
up between the image of educational
success, and the reality of what is tak-
ing place across the world.
And business leaders have been
complaining for over a decade that
GCSEs arent up to scratch, particular-
ly in teaching the basic skills required
for the workplace. Dr Adam Marshall
of the British Chamber of Commerce
recently stated that too many new
employees have lacked basic skills
and required remedial training for
inadequate literacy and numeracy.
Public confidence in GCSEs also
remains low. According to a YouGov
poll taken in June 2012, 60 per cent
Will Premier League financial fair play rules
have a positive impact on English football?
YES
Footballs finances have long needed a rethink. Clubs are incredibly
valuable assets to supporters and communities. They need
sustainable long-term stewardship, not a system of casino
economics, rampant insolvency and a dependency on the whims of a
super-wealthy elite. This can only be achieved through strong
independent regulation that includes financial fair play (FFP). FFP
will introduce more rationality into club finances, encourage
investment, and reduce reliance on debt and benefaction. These
advantages far outweigh the one supposed disadvantage the
possibility of securing big club success. There is a lack of evidence to
support this theory (look at the outcomes in the German Bundesliga,
for example), and there are other ways of improving competitive
balance if necessary, like a more even distribution of the games
wealth. Implementing that alongside FFP really would be progress.
David Lampitt is chief executive of Supporters Direct.
David Lampitt
NO
Stefan Szymanski
Financial fair play is really two things: a rule saying that clubs must
be solvent and pay their debts, and a rule that says that football
expenditure must be less than football income. The first rule is a
basic principle for running any sound commercial organisation no
problem there. But the second rule protects the interests of big
clubs by limiting the opportunity of smaller clubs to invest in a
competitive team. The rule is targeted at the sugar daddies, but
they are not the cause of the insolvency problems in European
football and have in fact brought billions into the game and made it
more attractive. The rule will limit competition on the pitch and may
be illegal, as it restricts competition for players without bringing
any benefit to the fans. Worse still, in the longer term it could drive
the best players to sign for clubs in China and the Gulf.
Stefan Szymanski is professor of sport management at the
University of Michigan. www.soccernomics-agency.com
Correct GCSE flaws
or Britain will lose
the global contest
think it has got easier to get a good
GCSE in recent years. And its not just
the public and parents who have lit-
tle confidence in the current system.
A recent survey showed just 51 per
cent of students in 2011 had confi-
dence in the GCSE exam system.
The most significant problem is
that the uptake of core subjects
maths, English, the three sciences,
history, geography and modern lan-
guages has slumped. In 1997, 50 per
cent of pupils were entered into five
or more of these subjects This figure
had more than halved by 2010, with
only 22 per cent of pupils sitting
these subjects.
By contrast, the think tank Reform
found that of the ten leading devel-
oped countries, eight require exami-
nations in at least four academic
subjects. If we do not ensure that
pupils are taking the core qualifica-
tions that provide a broad base for
the skills and knowledge that are
needed in the modern world, Britain
will fall further behind when it
comes to jobs and investment.
We are in a global race, in which the
qualifications of the twentieth centu-
ry will no longer equip us with the
necessary skills and knowledge need-
ed for the modern world. This means
that we need to emulate the coun-
tries that are powering ahead, teach-
ing the subjects that matter, backed
up by a rigorous education system
that will not accept second best.
Chris Skidmore is Conservative MP for
Kingswood, and a member of the Education
Select Committee.
CHRIS SKIDMORE
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from just 129 return.
visit cityjet.com
Education reform is necessary. A pass at
GCSE is achievable by virtually everyone,
rendering them pointless.
@Henry_UK
The EBacc was one of the few decent
reforms the Tories were attempting. And
they obviously end up scrapping it.
@fgr62
So what did we learn from Mark Carney
yesterday? Hes a diplomat and good
communicator. Will he shake up the Bank of
England? The jury is out on that one.
@asentance
EUs long-term budget may be cut but itll
remain out of step with economic reality.
@OpenEurope
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TV & GAMES
cityam.com
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BBC1
SKY SPORTS 1
7pmPremier League Preview
7.30pmLive Football League:
Watford v Crystal Palace (Kick-off
7.45pm). 10pmThe Fantasy
Football Club 11pmPremier
League Preview11.30pmMasters
of Euro Football 12amFootball
League 1.30amThe Fantasy
Football Club 2.30amPremier
League Preview3amFootball
League 4.30amThe Fantasy
Football Club 5.30am-6amLive
International Twenty20 Cricket
SKY SPORTS 2
6.30pmTight Lines 7.30pmLive
Super League 10pmWWE: Late
Night Smackdown 12amWWE:
Late Night Bottom Line 1am
Super League 3amElite League
Ice Hockey 4am-6amSuper
League
SKY SPORTS 3
6pmEuropean Tour Golf
8pmLive PGA Tour Golf
11pmEuropean Tour Golf 1am
PGA Tour Golf 4amThrillseekers
4.30amAerobics Oz Style
5am-6amTrans World Sport
BRITISH EUROSPORT
6pmLive Athletics 8pmLive
Boxing 10pmAlpine Skiing
12am-12.15amGT Academy:
Race to Dubai
ESPN
6.45pmPremier League Preview
7.15pmLive Premiership Rugby
Union 10pmFrench Football
11.45pmESPN FC Press Pass
12.15amGoal! Special 12.45am
ESPN Kicks: Extra 1amLive NBA
Basketball 3.30amUFC: The
Ultimate Fighter 4.30am-6am
Premiership Rugby Union
SKY LIVING
7pmThe Love Machine 8pmThe
Love Machine: Love Bites 9pm
Criminal Minds 10pmJerry
Bruckheimers Chase 11pmThe
Love Machine 12amThe Love
Machine: Love Bites 1amBones
1.50am Supernatural 2.40am
Medium3.30amCriminal Minds
5.10am-6amBones
BBC THREE
7pmGreat Movie Mistakes 2011:
Not in 3D 7.15pmDoctor Who
8pmDont Tell the Bride 9pm
Worlds Craziest Fools 9.30pm
Russell Howards Good News
10pmCome Fly with Me
10.30pmEastEnders 11pmSun,
Sex and Suspicious Parents 12am
Family Guy 12.45amBeing
Human 1.45amPramface 2.15am
Way to Go 2.45am-3.40amSun,
Sex and Suspicious Parents
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8.30pm2
Broke Girls 9pmFILMTop
Gun 1986. 11.10pmRevenge
12.10amThe Big Bang Theory
1.05amThe Ricky Gervais Show
1.35amThe Cleveland Show2am
Happy Endings 2.30amFranklin &
Bash 3.10amBalls of Steel
Australia 4.05amHappy Endings
4.25am-6amMade in Chelsea
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmStorage Wars: Texas
9pmAncient Aliens 10pm
American Restoration 11pm
Storage Wars 11.30pmPawn
Stars 12amAncient Aliens 1am
American Restoration 2am
American Pickers 3amIce Road
Truckers 4amAmerican
Restoration 5amPawn Stars
5.30am-6amStorage Wars
DISCOVERY
7pmBear Grylls: Born Survivor
8pmAuction Kings 9pmAuction
Hunters 10pmGold Divers: Under
the Ice 11pmAuction Hunters
11.30pmAuction Kings 12am
Auction Hunters 1amAmerican
Chopper 2amSons of Guns
3amAuction Hunters 3.50am
American Chopper 4.40am
American Chopper: Senior Versus
Junior 5.30am-6amMeerkat
Manor
DISCOVERY HOME &
HEALTH
7pmPortland Babies 8pmLittle
People, Big World 9pm19 Kids
and Counting 10pmSecretly
Pregnant 11pmChicago Medical
12am19 Kids and Counting 1am
Secretly Pregnant 2amChicago
Medical 3amLittle People, Big
World 4amBaby Days 5am-6am
Nanny School
SKY1
8.30pmJohn Bishops Only
Joking: Guests include Shappi
Khorsandi. 9pmStella: Little Alan
enters Got to Dance. 10pmAn
Idiot Abroad 11pmSpartacus:
Vengeance 2.45amCop Squad
3.35amCrash Test Dummies
4am-6amStargate SG-1
BBC2 ITV CHANNEL4 CHANNEL5
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6.30pmBBC London News
7pmThe One Show
7.30pmA Question of Sport:
BBC News
8pmEastEnders
8.30pmRoom 101
9pmSilent Witness
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmCHOICE The Graham
Norton Show
11.25pmFILMReign of Fire.
2001.
1amWeatherview1.05am-6am
BBC News
6pmEggheads
6.30pmGreat British Railway
Journeys Goes to Ireland
7pmRailway Walks
7.30pmGreat British Menu
8pmMastermind
8.30pmMasterChef: The
Professionals Michels
Classics
9pmCHOICE Monty Dons
French Gardens
10pmQI
10.30pmNewsnight 11pmThe
Review Show11.45pmWeather
11.50pmFILMThe Painted Veil.
2006. 1.45amSign Zone: Question
Time 2.45am-6amClose
6pmITV News London
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street:
8pmWild Britain with Ray
Mears
8.30pmCoronation Street
9pmGreat Night Out
10pmITV News at Ten
10.30pmITV News London
10.35pmFILMThe Birds:
Alfred Hitchcocks thriller,
starring Tippi Hedren. 1963.
12.50am Jackpot247
3amFILMPsycho: Thriller, starring
Anthony Perkins. 1960.
4.50am-6am ITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmFirst Time Farmers
9pm8 Out of 10 Cats
9.30pmThe Last Leg
10.20pmPaddys TV Guide
11.10pmRude Tube
12.10pmThe New Normal 12.35am
Random Acts 12.40am2 Broke
Girls 1.05amHappy Endings
1.30amDont Trust the B**** in
Apartment 23 1.55amBobs
Burgers 1.55amGlory Daze
3.00amSmallville 3.40amSt
Elsewhere 4.30amDeal or No Deal
5.25amCountdown
6pmHome and Away
6.30pm5 News at 6.30
7pmRory & Will Champions
of the World: 5 News Update
8pmCHOICE Ice Road
Truckers: 5 News at 9
9pmFILMBad Boys II:
Comedy thriller sequel, starring
Will Smith. 2003.
11.55pmInside Hollywood
2013
12.05amSuperCasino
4amMotorsport Mundial 4.25am
House Doctor 4.50amMichaelas
Wild Challenge 5.10amWildlife
SOS 5.15amWildlife SOS
5.35am-6amWildlife SOS
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6
7 8 9
10
11 12 13
14
15 16 17
18 19
20 21
22 23
7 16 10
18 15
41
7 9 17
16 33
14 4
18 10
13 23 9
28
20 12
16 13 22
8
11
7
9
16
32
20
19
5
5
23
25
33
37
12
12
6
8
35
34
3
15
6
10
ACROSS
1 Talk (5)
3 Aromatic substance used
to add avouring (5)
7 Plant family which
includes the maple (4)
9 Blazing (6)
10 One-hundredth
of a dollar (4)
11 Having a strong
healthy body (4)
12 Extension to a main
building (5)
15 Ancient upright stone slab
bearing markings (5)
17 Soft creamy French
cheese (4)
19 Without blemish or
contamination (4)
20 Chronological accounts
of events (6)
21 Speck (4)
22 Went out with, courted (5)
23 Indicate (5)
DOWN
1 Sailor (6)
2 Concur (5)
4 Tower
supporting high-
tension wires (5)
5 Divisible by
two (4)
6 State where
one is more or
less completely
incapacitated (9)
8 Ceremonial
elegance and
splendour (5)
13 Heron (5)
14 Protective head
covering (6)
16 Wipe of (5)
17 Hurray! (5)
18 Stripe of
contrasting
colour (4)
I
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N E W E R A R
D A M E S E N I L E
C Z N F S
S T Y E S A D A M S
1 3 2 4 9 7 1
4 7 1 9 2 6 5 8 3
9 7 8 6 1 3
1 6 4 1 9 9 3
9 8 6 3 7 1 4 2
2 9 8 6
4 2 1 3 5 5 8 9
9 8 8 6 1 6 7
1 6 7 8 5 9
2 3 9 6 8 4 1 7 5
1 4 3 9 2 4 1
4
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The nine-letter word was
BEHAVIOUR
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
FRIDAY 8 FEBRUARY 2013
THE GRAHAMNORTON SHOW
BBC1, 10.35PM
Graham chats to Michael Fassbender,
Mark Wahlberg (pictured), soon to be
seen in the thriller Broken City, and
Sarah Silverman.
MONTY DONS FRENCH GARDENS
BBC2, 9PM
Monty Don examines howthe national
love of food has influenced gardens in
France and learns about the importance
the French attach to the soil.
ICE ROAD TRUCKERS
CHANNEL5, 8PM
In Anchorage, Lisa Kelly and Tony
Molesky are given the responsibility
of driving the biggest loads of the
season so far.
TVPICK
Nicholas Hoult is
superb as a zombie
LIFE&STYLE
FRIDAY 8 FEBRUARY 2013
26
cityam.com
GOING OUT
THEATRE
CAPTAIN OF KPENICK
National Theatre | by Alex Dymoke
hhhii
FILM
WARM BODIES
Cert 12A | by Alex Dymoke
hhhhi
WHERE
TO DRINK
TIM BADHAM
NO BETTER half? No need! If you arent
coupled up for Valentines Day 2013,
head to one of the following clubs to
celebrate courtly loves patron saint. The
Old Vic Tunnels in Leake Street is
holding an avian-themed shindig named
the Love Nest Valentines Ball. From 14-
16 February the venue will be
transformed into the Old Vic Tunnels of
Love, complete with DJs, live bands,
interactive theatre and fancy dress. It
will take the pain out of courtship with a
Kingfisher Kissogram and if you have
a penchant for shaking a tail-feather, try
your luck at the Peacock Mating
Dance.
If you prefer your revelries in the open
air, The Roof Gardens is throwing one of
its trademark parties in South
Kensington, one hundred feet above the
street in their Spanish Gardens. The Roof
Gardens will be serving bespoke
Valentines themed cocktails while it
lights up the skyline with its multi-
coloured laser system and brilliant
fireworks display.
Just down the road, Raffles will be
paying homage to EL James seminal
work with its 50 Shades of Raffles Party.
The evening will be hosted by the
novels eponymous bad boy, Christian
Grey, with erotic feats of ballet
performed throughout the night and
beverages served by blindfolded
waiting staff.
If you prefer to spend your evenings
in private members clubs, Mortons on
Berkeley Square will be hosting lauded
singer Mica Paris to serenade its dining
room and showcase new songs from her
forthcoming album. Portman Squares
Home House will lavish guests in its
renowned style with Cupids Cabaret,
featuring three courses of delicious
cuisine, wine and some spectacular
performances thrown in for good
measure.
Notting Hills Supperclub will dish up
a dinner of various aphrodisiacs paired
with love potions all served in bed. It
has also put into play a Twitter-driven
matchmaker, allowing you to send
messages to your love interest across
the room if they respond, you can
move things into Supperclubs kissing
booth.
Tim Badham is the founder of
Innerplace, Londons personal concierge
service. www.innerplace.co.uk
@innerplaceLDN
Valentines Day
drinking for the
City singleton
The Roof Gardens in South Kensington
Sher shines in The Captain
W
ERE IT not based on real life
events, The Captain of
Kpenick would be
criticised for implausibility.
Written in 1931 but set just before
the first world war, German writer
Carl Zuckmayers play tells the story
of a real historical figure by the
name of Wilhelm Voigt (1849-1922),
a mustachioed, bowler-hatted petty
thief.
Voigt was living as an unregistered
resident in Berlin in 1906 when he
donned an old captains uniform,
took command of four unsuspecting
grenadiers, occupied the Kpenick
town hall and had the treasurer
arrested on charges of corruption.
His crime amused the German pub-
lic and even won a smirk from the
Kaiser, who eventually pardoned him
for his indiscretion.
Zuckmayer didnt exactly have to
work hard to eke out the satirical res-
onance from Voigts story. The
absurdly militarised society and the
perils of blind respect for uniform
are obvious themes, and ones that
adaptor Ron Hutchinson and direc-
tor Adrian Noble arent afraid of
hammering home.
What the production lacks in sub-
tlety it partly makes up for in
humour. Antony Sher gives a delight-
fully bouncy performance as Voigt
the honest thief. His German
accent sometimes fails him, but
these lapses only serve to compli-
ment the atmosphere of subterfuge
and preposterous gullibility. In his
bogus military garb hes a ball of
energy, leaping around and calling
soldiers to attention with the excited
enthusiasm of child at a fancy dress
party.
There are structural flaws, though.
A bloated first act keeps us waiting
too long for Voigt to undertake his
farcical charade.
There is also an issue of context:
the criticisms of chest-thumping
nationalism would have had real
urgency in 1931 Germany, but here
they feel laboured through repeti-
tion.
THE LATEST from writer-director
Joseph Levine (50/50, The Wackness)
is a typically off-beat teen movie set
in the midst of a zombie apocalypse.
A marauding, dull-eyed army of
the undead has invaded the world,
and an ever-dwindling population of
human beings have barricaded
themselves in a nameless city.
Heavily armed soldiers keep guard,
primed to shoot trespassing zombies
on sight.
One of these Zombies is R (a
terrific Nicholas Hoult). R feels
trapped in his Zombie body
and grapples with his
insatiable appetite for human
brains. To make matters
worse hes in love. With
a human.
Misunderstood,
shuffling around in
raggedy clothes and
tormented by urges
he finds impossible to act on hes
just like any teenager, really.
One moment theyre in a rickety
house by the sea, the next theyre
playing Joni Mitchell records in
the abandoned cockpit of a 747.
Levine is happy to leave things
unexplained, lending a
pleasant dreamlike quality to
proceedings. In its best
moments, Warm Bodies
achieves a Donnie
Darko-style
otherworldliness.
Excellent
supporting turns
from Teresa Palmer,
John Malkovic and
Analeigh Tipton
make up for the
overly tidy ending.
The Olivier theatres large, versa-
tile space is put to good use, with a
protruding, beautifully jaunty
cityscape designed by Anthony
Ward. The early twentieth century
clothing, combined with satirical
potshots at the military, evoke a feel-
ing of Laurel and Hardy or Charlie
Chaplin and the spinning stage is
taken full advantage of by the physi-
cal comedy.
None of the plays problems are
Warm Bodies: a terrific teen romp
Wreck-It Ralph is nostalgic fun
FILM
WRECK IT RALPH
Cert: PG | By Annabel Palmer
hhhii
WRECK-IT RALPHwas a project
in good hands: executive
produced by John Lasseter (Toy
Story) and directed by Emmy-
award winner Rich Moore (The
Simpsons).
True to Disney form, its a
journey towards the realisation
that theres no one Id rather be
than me, this time set inside the
creative and colourful collection
of video games that form
Litwaks Arcade. It made me
want to dig out my old Sega for a
quick game of Sonic the
Hedgehog.
When the arcade closes each
night, its game characters are
free to travel to other games.
Ralph (John C Reilly) is tired of
being the bad guy in his own
game, Fix-It Felix Junior. He
spends his days destroying
masonry and his nights sleeping
alone in a pile of bricks, while his
squeaky clean rival, Fix-It Felix
Junior, laps up the glory that
comes with being the hero. His
game's retro vibe has kept the kids
coming back for more, and its 30th
anniversary has driven poor Ralph
to existential crisis. But a rare
appearance at the Bad-Anon
support group for video game
antagonists leads to an epiphany:
he will travel to a different game
and win a shiny gold medal to
prove his worth.
Ralph busts into the
warlike, hyper realistic
Hero's Duty (it makes
Gotham City look like
Miami Beach), and gets his
medal, but a run-in with
the game's very own bad
FRIDAY 8 FEBRUARY 2013
27
of Kpenick
Hitchcock biopic
looks good but
enlightens little
down to the cast, who turn in
ahem uniformly good performanc-
es. The rotund Anthony ODonnells
Captain of Kpenick who Voigt
quarantines and pretends to investi-
gate for municipal corruption is an
amusingly immobile foil for the irre-
pressible Sher.
Captain of Kpenick is at times
bloated and inefficient, but remains
undeniably funny and warmhearted
a peculiarly un-German affair.
I Give it a Year
is a tired stab at
a Brit rom-com
FILM
I GIVE IT A YEAR
Cert: 15 | by Alex Dymoke
hiiii
WHAT COULD be worse than
sitting through the wedding
of two selfish and
incompatible people that you
dont know or like? I can tell
you: sitting through the
aftermath having to watch
as the marriage dies a slow
death at the hands of petty,
bin-related domestic disputes,
feuds with the in-laws and
built up resentments.
High powered ad exec Nat
(Rose Byrne) and failing writer
Josh (Rafe Spall) get married in
the first ten minutes of I Give
it a Year, before gradually and
simultaneously realising that
theyre both in love with other
people. Dont be fooled,
though, the superficially
unconventional set up still
leads to a nauseatingly
sentimental climax.
Writer-director Dan Mazer
claims to have subverted the
wedding rom-com, but a series
of clichs in reverse order is
still a series of clichs.
Inappropriate best man
speech? Check. Inept man
buying lingerie for his
girlfriend? Check. Airport
reunion? Check. Ensemble of
sex-obsessed friends? Check.
The unoriginality of the
writing is matched by the
ineptitude of the acting (save
for an overly brief cameo from
Tim Key). Rafe Spall is
supposed to be an attractive,
down on his luck creative type
in the mould of Hugh Grant in
Notting Hill, but his character
more closely resembles Jez
from Peep Show.
The characters are
unpleasant, the jokes arent
funny and the soundtrack
includes Snow Patrol. The
experience brought to mind
some kind of awful
interrogation technique: not
only was I being tortured, I
was also being subjected to
loud, offensive music designed
to disorientate and chip away
at morale.
Some of the edgier
material could only have been
justified by an underlying
goodheartedness that was
glaringly absent. In the end it
is a badly written, badly acted
farce, spluttering sexual
assault jokes into a silent
screening room.
Same dreary plot, different order
FILM
HITCHCOCK
Cert 12A | By Steve Dinneen
hhiii
A
NTHONY HOPKINS, by his
own admission, doesnt go
in for all this fancy method
acting. He turns up and he
reads the script. The problem is,
sometimes it really shows
beyond the rippling fat-suit and
layers of impressive cosmetics,
the only similarity between him
and Alfred Hitchcock is their
initials.
Hitchcock centres around the
troubled birth of the directors
most famous movie, Psycho, with
Hitch (as he is known to his
friends) already a well-established,
grossly-obese, foie gras guzzling
control-freak.
His unhealthy, sexually charged
obsessions with his blond female
leads (Tippi Hedren, star of The
Birds, was especially distraught
after his crude advances) is a
central theme, although director
Sacha Gervasi is at pains to keep
matters upbeat.
The result is a messy portrait of
the artist at work that veers from
jaunty caper-movie to
psychological drama, with little
holding the two poles together.
The use of imagined
conversations between Hitch and
Ed Gein the real-life serial killer
who inspired Psycho is a lazy
way of addressing the directors
demons, and the shots of Geins
isolated farmhouse, presumably
intended to look
Hitchcockesque, are a clumsy
imitation.
Helen Mirren brings some
warmth to the proceedings as
Hitchs long-suffering wife Alma
Reville, who is by far the most
fully-formed member of the
supporting cast. While Hitchcock
offers little insight into the mind
of the great director, Almas
pivotal role in his success
including her expert eye during
the editing process is at least an
interesting consolation.
The star turn, though, comes
from James DArcy as Anthony
Perkins, the actor who played the
infamous Norman Bates. DArcy
looks creepily like the actor and
nails his mannerisms Gervasis
biggest crime is restricting him to
just a handful of scenes.
Scarlett Johansson has little to
do as Janet Leigh, except look
good with a short, blond haircut
(notwithstanding some impressive
screeching during the
reconstruction of one particular
scene from Psycho you can
probably guess which one). This
could be a statement on Hitchs
infamous treatment of his stars
they were cattle; props to allow
him to realise his genius or it
could be that there just wasnt
the space for another fully
developed personality.
Hitchcock suffers from making
too few choices: on one hand, it
could have been a jolly romp
through late 1950s Hollywood, on
the other, a searing portrait of a
troubled genius. Gervasi has a
stab at both and, like Leighs
Marion Crane in Psycho, is
already dead half an hour in.
Anthony Hopkins looks the part as the rotund Alfred Hitchcock
for lovers of video-games
guys (cy-bugs) forces him to crash
land next door in the saccharine
go-kart game, Sugar Rush. In
search of his medal, he meets
fellow misfit Vanellope von
Schweetz (Sarah Silverman). Its
here that the film
switches from
kids film for
adults,
complete with
kidult humour
(think Shrek), to
kids film for
kids (think
Cars). The pair
strike up an
unlikely but
mutually
beneficial
friendship
she needs
help racing,
he needs her
to win back
his stolen
gold medal. They encounter
perilous obstacles in the form of
King Candy, who's like a Mad
Hatter with wheels, and an attack
of cy-bugs, who must be
eliminated for the arcade to
survive.
Lovers of 80s computer games
will be filled with nostalgia, with
myriad references to Pac-Man,
Donkey Kong and their ilk (Sugar
Rush a hot pink visual wonder
with every sweet treat you could
think of is like a Japanese version
of Super Mario Kart, complete
with its very own Rainbow Road).
Parallels with Pixars Toy Story
abound these arcade games fear
theyll be unloved and unplugged
in the same way Woody and Buzz
fear abandonment. But ultimately
Wreck-It Ralph has too much
Disney sentimentality and not
enough of the depth or charm we
have come to expect from one of
Pixars modern classics.
Captain of
Kpenick is a
Python-esque
exercise in
physical comedy
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AT LINGFIELD PARK
ENOUGH
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FRIDAY 8 FEBRUARY 2013
28
THEPUNTER
RACING TRADER
BILL ESDAILE PREVIEWS THE BEST OF THE WEEKENDS RACING AT NEWBURY AND LEOPARDSTOWN
Ronaldo Des Mottes and Village
Vic the value in Betfair Hurdle
WE HAD some thrilling finishes in
last weeks Blue Square Bet
Sprint Series and were really building
up a head of steam with the Grand
Final just two weeks away.
Luke Morris returns to Lingfield Park
Racecourse tomorrow having had to sit
out all but one of the rounds so far
through suspension. We rate him 16/1
to defend his top jockey in the series
award.
William Carson is our firm 2/1
favourite and Violet Jordan is just 4/9
to be the top trainer after two
successes with Frognal helped give her
a 10 point lead over David Evans (13/8)
in the standings.
Looking at tomorrow and I like NIGHT
TRADE in the 2.35pm. She came back
from a long lay-off to finish a close
second at Wolverhampton last time
out. In round three last year she was
beaten into third by no more than a
neck at 20/1. She wont be anything
like that price this time but, with Morris
on board, the mare can exploit a nice
mark to win for the first time since July
of last year.
RESTLESS BAY has been campaigned
at seven furlongs since his January
success in round two. A win here would
see Conor Dores five-year-old scoop
enough points to have a nice rest
before the Grand Final and that surely
must be the trainers plan. Hayley
Turner takes over from Morris in the
saddle and she is just as capable
around the Surrey venue.
As ever, bet with Blue Square Bet and
we will give you your money back if
your horse is second, beaten less than
half a length.
TOMORROWS Betfair Hurdle at Newbury
(3.00pm) seems to revolve around Nicky
Hendersons My Tent Or Yours.
With the stable losing Champion
Hurdle contender Darlan in a tragic fall at
Doncaster on Monday, it would be great
to see AP McCoy, who was on board
Darlan when he upturned at the last, and
owner JP McManus end the week with
some better news.
My Tent Or Yours has always been well-
regarded, starting an odds-on favourite in
five of his six career runs, and is a leading
prospect for the Supreme Novices Hurdle
at the Cheltenham Festival next month. A
win will see him cut for the Festivals first
contest but he was 12/1 when the betting
opened for this race and is now just a
general 7/2 shot.
So, from a value perspective I can leave
him alone, especially as the last five
winners all carried less than the 11st2lb
the six-year-old has to shoulder.
The two that interest me are RONALDO
DES MOTTES and VILLAGE VIC for
trainers David Pipe and Philip Hobbs
respectively.
Ronaldo Des Mottes hasnt won since
December 2009, but for an eight-year-old
he is lightly-raced. His best ever career
effort was in this race two years ago,
when he just failed to concede 7lb to Get
Me Out Of Here.
The Rifapour gelding is just 2lb higher
than that second place finish now and he
should improve on a satisfactory
reappearance at Sandown last month. The
decent claimer Tom Bellamy takes off 7lb
meaning he is on a very manageable
weight of 10st4lb. Hes 12/1 with Star
Sports.
Village Vic has come up against three of
the most exciting novice hurdlers in his
last three outings The New One,
Coneygree and Melodic Rendezvous but
the fact the son of Old Vic has started
favourite in two of those suggest
connections think he is a lot better than
hes been able to show so far.
A short break should have done him
some good and a repeat of his close
second to The New One at Cheltenham
last October should see him have a say in
proceedings. Elsewhere on a brilliant
card, Silviniaco Conti (2.25pm), Simonsig
(3.00pm) and Unioniste (4.10pm) all look
very difficult to beat as they bid to enhance
their Festival claims. Paul Nicholls
Unioniste was mightily impressive at
Cheltenham last time, defying his lack of
experience to win readily from experienced
yardsticks. The five-year-old will at least be
odds-against.
Over at Leopardstown, two of Irelands
most exciting chasers, FLEMENSTAR and
Sir Des Champs, do battle once more in the
Irish Hennessy (3.20pm).
The bookmakers can hardly split the pair
with Peter Caseys Flemenstar just shading
the betting at 6/5 with Coral. Willie
Mullins Sir Des Champs is 5/4 with Blue
Square Bet but was beaten convincingly by
the former at Punchestown in December
and again just edged out in the Lexus Chase
when he was fourth, just a short head
behind Flemenstar.
Supporters hope a combination of better
ground and slight question marks over his
rivals stamina may see last years Jewson
winner reverse the form.
Perhaps tactics here at the Dublin course
in the Lexus undid Flemenstar, who had
them all off the bridal turning for home
before weakening in the final furlong and
getting nabbed near the line.
He travelled like the best horse that day
and on slightly better ground he is worth
another chance to show he stays three miles.
Sir Des Champs jumped poorly and has it all
to prove having yet to reach the heights of
last year.
The likes of Quel Esprit and Joncol are held
on all known form and its a big step up for
Roi Du Mee.
Looking ahead, Paddy Power have priced
up the Racing Plus Chase at Kempton on
Saturday 23 February and make WYCK HILL
their 6/1 favourite. That is a great bet
considering that Wyck Hill beat Katenko by
four lengths at Ascot in December.
Katenko has gone on to demolish his
opponents in two decent contests since en
route to a crack at the Gold Cup and Michael
Bridgewater holds similar aspirations for
Wyck Hill, who has to be winning this sort of
race if he is to go for Cheltenhams
showpiece event. With Katenko now rated
158, the nine-year-old looks really well-
handicapped off 142.
WITH ALAN ALGER FROM BLUE SQUARE BET
nPointers
RONALDO DES MOTTES e/w 3.00pm Sandown (tomorrow)
VILLAGE VIC e/w 3.00pm Sandown (tomorrow)
FLEMENSTAR 3.20pm Leopardstown (tomorrow)
WYCK HILL Racing Plus Chase (23 February, Kempton)
My Tent Or Yours
winning would be a
welcome boost for
connections but value
lies elsewhere in
Betfair Hurdle
Spurs and Man United in tough home ties
29
SPORT TRADER
WILLIAM CHRIMES AND BEN CLEMINSON PREVIEW THE BEST OF THE WEEKENDS ACTION
cityam.com
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WWW.STARSPORTSBET.CO.UK 08000 521 321
PLENTY of races at this year's
Cheltenham Festival have a far more
open feel to them than usual.
The markets for the Gold Cup and
World Hurdle currently resemble
handicaps, while the Neptune Novices
Hurdle is shaping up to be one of the
races of the week.
One race that doesn't look quite so
competitive is the Albert Bartlett
Novices' Hurdle.
At Fishers Cross currently heads the
betting after his gutsy defeat of the
highly-rated The New One on
bottomless ground on Trials Day last
month.
Although he seems to be progressing
and will unquestionably be suited by
the near half-mile step up in trip, there
is a suspicion he may be reliant on soft
ground something thats not
guaranteed on the final day of the
meeting.
Irish raider Pont Alexandre, who still
holds a prominent position at the head
of most lists, is being aimed at the
Neptune two days earlier according to
his trainer Willie Mullins but his
powerful stable will be represented by
BALLYCASEY.
The lightly raced six-year-old was
having only his second start over
hurdles at Thurles last month and
relished the step up to two-and-three-
quarter miles.
He won in the style of a smart
prospect that day and Ruby Walsh
needed only a twitch of the reins to
settle things some way from home.
Walsh looks set to renew the
partnership next month and I expect
the 6/1 on offer with Star Sports to
collapse as the meeting approaches.
More importantly, I think Ballycasey
will go very close.
BY BILL ESDAILE
nPointers
BALLYCASEY 6/1 Albert Bartlett Hurdle
(Cheltenham Festival)
Red Rose can build on fine
form by passing Dublin test
E
NGLAND meet Ireland at the
Aviva Stadium for the second
round of Six Nations matches
after a memorable opening
weekend that featured an impressive
defeat of Scotland by the Red Rose and
another significant step forward for
Italian rugby as they edged out France.
Stuart Lancasters decision to trust a
number of younger players was vindi-
cated as England ran out 38-18 winners
to emerge as 6/5 favourites for the tour-
nament with Star Sports. He has fash-
ioned a side that has a blend of youth
and experience which is thriving under
his regime.
A perfect example is Gloucesters Billy
Twelvetrees, who grabbed his opportu-
nity on debut with a try at
Twickenham, and the dynamic centre
is set to earn his second cap. There was
speculation around whether he would
drop to the bench as Manu Tuilagi has
returned to training but I wouldnt be
surprised to see the Leicester centre
used as an impact replacement.
England did what they had to against
the Scots and now have their first gen-
uine test against Ireland, who began
with an entertaining 30-22 triumph at
the Millennium Stadium.
Declan Kidneys side blew Wales away
for the opening 40 minutes in Cardiff,
yet were unable to match the intensity
through the second period as the hosts
fought back to give Ireland a real scare.
Sundays clash will be the sixth time
in five years that Ireland and England
have met and its three victories apiece.
England have claimed the past two
internationals against the Emerald Isle,
including a convincing 30-9 victory in
last years tournament. It was the sec-
ond successive game that England have
prevented Ireland scoring a try and they
managed only nine points in each
defeat.
Ireland do have some exciting attack-
ing talent coming through that will test
Englands defence and mercurial winger
Simon Zebo is certainly one to watch.
Brian ODriscolls return last weekend
gives the side some added experience in
midfield, yet Im not convinced the Irish
are capable of putting together 80 min-
utes of rugby and thats where England
hold the advantage.
Whoever wins this crunch game will
have the momentum going forward
and will be in a strong position to land
the tournament and the Grand Slam
after Frances shock defeat to the
Italians.
Englands squad has the perfect bal-
ance and excellent options from the
bench to rely on to help close out a tight
game. Coral have both sides at 10/11 and
at those prices Im keen to take on the
hosts and back England to win a third
successive game over Ireland.
The average winning margin of the
Red Roses past two internationals with
Ireland currently stands at 16 points, so
a buy of Englands supremacy at 4 with
Sporting Index is also recommended.
England can land a
third successive win
over Ireland on
Sunday
nPointers
England to beat Ireland at 10/11 with Coral
Buy Englands supremacy at 4 with Sporting Index
nPointers
Newcastle double chance at 11/10 with Blue Square Bet
Draw (Man Utd v Everton) at 3/1 with Coral
2-2 correct score (Man Utd v Everton) at 16/1 with Coral
HAVING had a frustrating few months with a
leaky defence, its now in attack that Tottenham
find themselves struggling.
Spurs are likely to line up tomorrow
lunchtime without a recognised striker on the
pitch. Jermain Defoe is ruled out through injury
and Emmanuel Adebayor has just returned
from the Africa Cup of Nations.
No one is quite sure what went on behind the
scenes in January, but Andre Villas-Boass
failure to get a frontman in may come back to
bite him as the club battle to hold on to a top
four spot in the Premier League.
Tottenham havent managed more than one
goal in any of their last five matches and I think
they are vulnerable to a resurgent Newcastle.
The signings of seemingly half of France during
the transfer window reaped immediate rewards
when Moussa Sissoko starred in back-to-back
victories for the Magpies against Aston Villa and
Chelsea and it was the former Toulouse mans
brace last weekend that gave them that
memorable 3-2 win.
If Alan Pardews men can keep Gareth Bale
quiet then I can see the visitors leaving White
Hart Lane with at least a point.
The Newcastle double chance draw or
away win is 11/10 with Blue Square Bet and
thats worth snapping up.
At Old Trafford on Sunday, Manchester United
will bid to banish memories of last Aprils 4-4
game with Everton that arguably cost them the
title. The Toffees fought back from 3-1 and 4-2
down to force a draw that day.
Everton beat their hosts this weekend 1-0 on
the opening match of the season at Goodison
Park and, although the Merseysiders draw too
many of their league games 12 of 25 so far
they have lost just once in their last 10,
proving just what a tough nut David
Moyes men are to crack.
It seems inconceivable that the Red
Devils can saunter on in the title race
without dropping points at some stage
and this certainly looks one of their
toughest games for a while.
At a generous 3/1 with Coral, chance
the draw, and, with both teams more
than capable of finding the net, the 2-2
correct scoreline at 16/1 with Coral must
also be worth a punt.
Danger man:
Newcastle must
keep Gareth
Bale in check if
theyre to get
anything at
White Hart Lane
tomorrow
WEST HAM captain Kevin Nolan has
called for the January transfer win-
dow to be scrapped, insisting no one
in football is in favour of it any more.
His comments come after Queens
Park Rangers manager Harry
Redknapp complained of gang war-
fare among agents trying to muscle
in on each others transactions as
last weeks deadline approached.
Hammers co-owner David Sullivan
echoed Redknapps remarks, alleg-
ing that one agent threatened him
with physical violence, while Arsenal
boss Arsene Wenger has also called
for radical reform of the window.
Nolan admitted West Ham boss
Sam Allardyce had not enjoyed a
month of uncertainty over who
would be joining or departing his
squad as the club prepared for the
end of season run-in.
I think its starting to get to every-
one, this transfer window thats
just gone. I dont think anybody
likes it any more, said Nolan,
who tried his hand at trading
on a visit to the City this week
as West Ham announced a
new shirt sponsorship with
forex broker Alpari.
Harry Redknapp was
genius when he said about
it being like gang warfare.
I think everyone does feel
that way about it now.
All the managers and
owners do really feel that
way about it.
The Premier League has operated a
January transfer window, in line
with other European leagues, since
Scrap January window,
says Hammers captain
2003, and Nolan believes the novelty
of winter trading has worn off.
Its lost the little sparkle it had
when it first started, he added. I
must admit I have Sky Sports News
on every day but I didnt this month,
even when it came to the final hours
and the final countdown, it just did-
nt grab me this time. In July I was all
over it, looking forward to getting
back to football, seeing whos moving
and all that it was great then. But in
my opinion its lost its sparkle.
Michel Platini, president of
European governing body Uefa, last
week hinted that growing opposition
to the January window may force him
to consider scrapping it altogether.
I think a lot of coaches are unhap-
py about it because they dont know
if they are going to end the competi-
tion with the same team they started
with, said Platini.
I think its unacceptable when, in
one part of the competition, a player
plays for team A against team B and,
in the second half, he plays for team B
against team A. This transfer window
has been created to allow for a certain
amount of business in a few other sit-
uations, but I think overall it dam-
ages the competitions.
Redknapp, a manager of 30 years
experience, said a shortage of deals
had made agents more aggressive in
pursuing a cut. I have never seen
anything like this transfer window,
he said. Every agent seems to be try-
ing to screw each other. Its like gang
warfare out there. Its scary.
Wenger has argued that Uefa
should abandon the window, or
impose limits on how man players
clubs can buy. He said: I think it
[January transfers] should all
be completely cut out or lim-
ited to two players.
West Hams three-year
shirt deal with Alpari
starts next season and is
understood to be worth the
club 3m per year.
Alpari FX Trading Global forex broker
Alpari will be Principal Partner of West
Ham United for three years from the start
of the 2013/14 season. For more informa-
tion on the sponsorship and Alpari, please
visit alpari.com/sponsorship.
Spurs look to Adebayor as Defoe ruled out
TOTTENHAM manager Andre
Villas-Boas insists centre-forward
Emmanuel Adebayor will go
straight back into the side
tomorrow against Newcastle,
despite doubts over his fitness.
Jermain Defoes ankle injury,
suffered in Sundays win at West
Brom, is set to keep him sidelined
for three weeks, leaving Adebayor,
who has scored just two Premier
League goals this season, the
clubs only fit striker.
Adebayor was due back in north
London last night or this morning
after a three-week absence
representing Togo at the Africa
Cup of Nations, where they
reached the quarter-finals.
Villas-Boas intends to select him
but admits he does not know
whether Adebayor will be fit
enough to start the lunchtime
kick-off at White Hart Lane.
Obviously we have to take a
look at him first, said Villas-Boas.
We dont have any news
regarding injuries, so hes going to
be selected for sure. I have to
make a decision whether he will
be in the starting XI or not.
Villas-Boas has been indebted to
Gareth Bale for decisive goals in
the last two games, and believes
the Wales winger will stay at
Tottenham if they can clinch
Champions League qualification.
This is where most clubs want
to be, and where most want to
play, he said. Its part of our
objectives so achieving it means
we can attract better players and
hold on to our best players.
Tottenham could overtake
Chelsea and climb to third in the
league by beating Newcastle.
Nolan says
managers and
owners are tired
of the window
CHELSEA and England midfielder
Frank Lampards 12-year
association with the club could be
set for a surprise extension after
Blues chiefs changed their mind
about offering him a new contract.
Lampard had been expected to
leave Stamford Bridge in the
summer when his current deal
expires, but Chelsea owner Roman
Abramovich is believed to have
reconsidered amid fan protests.
The evergreen 34-year-old
underlined his longevity by scoring
the winner in Englands 2-1
friendly win over Brazil on
Lampard looks set to remain a
Blue after clubs U-turn on deal
Wednesday, and is only five goals
short of equalling Chelseas all-
time scoring record.
Chelseas apparent U-turn comes
after England manager Roy
Hodgson warned Lampard that he
would be putting his international
future in jeopardy if he joined a
club outside of Europe.
If he goes further afield and
follows David [Beckham to LA
Galaxy], it complicates matters but
it doesnt mean your career is over
with England, Hodgson said.
But the further afield you go,
the more problematic it gets for
the media and the England
manager to follow you.
BY FRANK DALLERES
BY FRANK DALLERES
BY FRANK DALLERES
FRIDAY 8 FEBRUARY 2013
30
SPORT
cityam.com
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West Ham stars and boss Sam Allardyce (below) tried their hands at trading at Alpari
IN BRIEF
League rejects new Pompey bid
nFOOTBALL: Portsmouth face being
kicked out of the Football League if a
new bid for the club from takeover
broker Keith Harris succeeds. The
Football League said it would only
renew the clubs membership if the
Portsmouth Supporters Trust bought
and took them out of administration
by the end of the season.
GB women enjoy perfect start
nTENNIS: Great Britain thrashed
Bosnia-Herzegovina 3-0 in their
opening Fed Cup Euro/Africa Group I
tie yesterday. Heather Watson and
Anne Keothavong won singles
matches before Laura Robson and
Johanna Konta won the doubles.
BRITAINS Mark Cavendish is poised
to clinch his first title with new
team Omega Pharma-QuickStep
today after winning a third stage in a
row on cyclings Tour of Qatar.
Cavendish produced a trademark
sprint finish to win yesterdays fifth
stage and extend his lead over
American Brent Bookwalter to 15
seconds. The Isle of Man rider needs
only to avoid a disastrous final stage
today to claim the second overall win
of his career and a first since leaving
Team Sky after the 2012 season.
We knew if we got through today
it would be easy tomorrow, said the
27-year-old, who won the Tour de
Frances green jersey in 2011.
The last two days of course we
wanted the big commitment, but we
really got out the unit today. We just
rode incredible as a unit.
Cavendish has now won four
stages in three weeks with the team.
BY FRANK DALLERES
Cavendish closes in on maiden
title since ditching Team Sky
Results
RUGBY
COMMENT
HUGH VYVYAN
WALES WITHOUT WARBURTON IN PARIS
WALES will be without inspirational captain Sam Warburton for tomorrows RBS Six
Nations trip to France after the flanker failed to recover from a shoulder injury. Justin
Tipuric replaces Warburton, while Ryan Jones returns to lead the side.
SPORT
31
FRIDAY 8 FEBRUARY 2013
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The Tulip Club will bring together the cream of the business community for the nest
in rugby hospitality at Saracens new state-of-the-art stadium, Allianz Park, in the heart of London.
As well as exclusive networking opportunities and special themed events in the heart of the city.
To join the waiting list, email hughvyvyan@saracens.net
I
S IT premature to be calling
Englands game in Dublin a Six
Nations title decider? If England
clear the breakdown as quickly as
they did against New Zealand and
Scotland then I back them to win
tomorrow. Whats certain is the
magic of the championship means
we can anticipate drama.
This years tournament looked too
close to call for many pundits.
Scotland and Italy are always capable
of an upset (ask France), Wales are on
a dreadful run and have problems
with confidence and injury, while
Ireland are striving to find the form
of their provinces.
The first game between those two
was a humdinger, which I think
Ireland just deserved. France slipped
on the annual Italian banana skin
and have difficult trips to England
and Ireland, but never write them
off. England looked most impressive,
are full of confidence and, with the
increase in stability and maturity,
they will convert the narrow losses of
last summer and autumn into good
wins, as they did against Scotland.
It was pleasing to see Saracens lads
Breakdown key
to Englands
Dublin mission
perform so and special mention goes
to young flanker Will Fraser for his
first call-up. Will broke into our first
team this season and has been excep-
tional. Its deserved recognition for a
good humble professional.
After the opening weekend, it was
back to business at Saracens, and
Wednesday saw the launch of the
exclusive Tulip club, our unique ini-
tiative combining hospitality and
business for corporate supporters.
This first event, held in the heart of
the City, saw a host of business lead-
ers rubbing shoulders with sports
stars for a great evening. We still have
a few places left for the Tulip Club;
please get in touch for information.
Hugh Vyvyan is an ex-England rugby
player currently developing the Saracens
Tulip Club offering in the City.
HARLEQUINS centre Matt Hopper
insists they have learned the lessons
of a dramatic opening day victory
ahead of tomorrows return Aviva
Premiership clash with Wasps.
Leaders Quins were shocked by
their London rivals in the seasons
curtain raiser at Twickenham,
falling 40-13 behind before an
astonishing comeback saw them
snatch a 42-40 win.
We know exactly what they are
capable of after the first game, said
Hopper. For the first 55 minutes
they blew us away so we are all
aware of the threat they pose. Weve
looked at what they do and how we
can stop them but training is more
about getting our heads down and
focusing on what we can do.
Second-placed Saracens, who have
not lost an away game since
November, will look to keep on the
heels of their London rivals when
they travel to the Madejski Stadium
to take on relegation-threatened
London Irish.
Elsewhere London Welsh face a
huge test of their Premiership
credentials when visit Welford Road
to face Leicester Tigers.
Aviva are proud title sponsor of Aviva
Premiership Rugby, one of the worlds
leading rugby union competitions. Each
season features 135 games, which will be
watched by 1.7m people live at the
grounds. Visit www.premiershiprugby.com
Quins still bear
Wasps scars as
rematch looms
BY CHARLIE TALBOT-SMITH
Roman Abramovich (left) and Sheikh Mansour have spent hundreds of millions of pounds on transforming Chelsea and Manchester City
THE DAYS of mega-rich individuals,
such as Roman Abramovich at
Chelsea and Sheikh Mansour at
Manchester City, lavishing billions
on clubs in pursuit of instant success
are over after Englands top teams
agreed historic new financial rules.
Premier League clubs will face
points deductions if they lose more
than 105m over a three-year period
or increase wages by more than 4m
a year. The regulations take effect
from next season and were narrowly
passed at a vote of top-flight
chairmen in London yesterday.
Advocates of the moves, such as
West Ham chairman David Gold, say
they are an effort to curtail spending
and will prevent more teams from
following Portsmouth into a spiral of
financial difficulties and decline.
Critics, such as football economics
expert Professor Stefan Szymanski,
argue that the rules will hinder
competition by cementing the
dominance of the established big
clubs and, as such, may be illegal.
So-called sugar daddies such as
Abramovich and Sheikh Mansour
have transformed their clubs
fortunes by pumping in hundreds of
millions of pounds to cover spending
something Premier League
chairman Richard Scudamore said
would no longer be permitted.
A new owner or even an existing
owner with a change in attitude or
in fortunes can invest a decent
amount of money to improve their
club, he said. But they arent going
to be throwing hundreds of millions
at it in a very short period of time.
Im not criticising that Ive been
supportive of what they have done.
Scudamore said he would push
the leagues disciplinary commission
to levy points deductions on clubs
who flout the 105m threshold,
which is significantly less strict than
the limit imposed on teams playing
in European competition. If there is
a material breach of that rule we will
be asking the commission to
consider top-end sanctions, he said.
Chelsea, who must comply with
the stricter Uefa rules anyway, voted
in favour of the moves. It is believed
that City, Fulham, West Brom, Aston
Villa and Swansea opposed the
changes, with Reading abstaining.
Gold, writing in todays City A.M.,
said he would have favoured even
tougher limits on spending but
welcomed the compromise as a step
towards preventing further
insolvencies like Portsmouth.
Professor Szymanski believes that
measures to prevent sugar daddies
bankrolling losses could harm
English football. The rule will limit
competition on the pitch and may
also be illegal since it restricts
competition for players without
bringing any benefit to the fans, he
writes in todays City A.M. Longer
term it may drive the best players to
sign for clubs in China and the Gulf.
BY FRANK DALLERES
32
SPORT
cityam.com/sport
Redknapp was genius
when he said it was like
gang warfare

@cityam_sport
Top football clubs call
time on sugar daddies
SPOTLIGHT ON
financial fairplay in
FOOTBALL
T
HIS is something we Premier
League clubs have talked about
for years and there hasnt been
the appetite. But in the last
couple of years there has been a shift
of views probably prompted by the
Portsmouth situation, which shook
everybody and now fortunately
weve agreed to put in some protocols
that I think will ensure another
Portsmouth doesnt happen and
football remains healthy.
Im a hawk, you might say; I would
have liked the measures to go
further, but I think they are a good
start. I think the 105m threshold
for allowable losses over three years
is too high, but its a starting point
that nobody is really uncomfortable
with. In due course maybe we can
revisit the numbers and bring in
new governance for years to come.
The important thing is getting
everyone in agreement. If you want
to go forward in full agreement, you
make compromises. Its all well and
good having huge incomes but we
need prudence and good
governance.
ROMANTICS
Some have argued that restricting
clubs losses will protect the status
quo. I say big teams are big teams,
and they will remain so whatever
you do. There is no perfect solution
were in competition with each
other but if there was one thing we
couldnt afford to do, it was nothing.
I hope it doesnt mean the end of
rich individuals building up clubs,
because thats exciting. But those
people fall into two types: a wealthy
person who buys a club, and then
romantic ones like Dave Whelan at
Wigan. Dave would never have
invested what he has in another club
across the road, but he does it for the
love of his club. I think he will still
be able to that.
In a way it sifts out the gamblers
and encourages the romantics. Say a
boy goes out, does good, comes back
and gives cash to his club, hes not
looking to double his money I
dont think what we agreed
yesterday impinges on that and I
certainly wouldnt vote for
something that I believed did.
I think its good news for clubs big
and small, and most of all for fans.
From their perspective, if theres
more money in clubs, maybe it could
be a precursor to freezing ticket
prices across the league. Thats
something Id love to see and
something we could consider in the
not too distant future.
David Gold is chairman and co-owner
of West Ham United.
FOOTBALL
COMMENT
DAVID GOLD
Id have gone further, but new rules are a good start
New ball game:
how rules will work
Limiting permitted losses
n Clubs will be permitted to make
maximum aggregate losses of 105m
over a period of three seasons,
starting with 2013-14. Any clubs
making losses of more than 15m in
the same period will have to provide
the Premier League with evidence of
secure owner funding for the three
years that follow. This measure goes
beyond European governing body
Uefas financial fair play (FFP) rules.
But clubs playing in the Champions
League or Europa League, and
therefore subject to Uefas FFP, are
already required to limit losses at
45m (37m) over two years, with
that figure diminishing each year.
Premier League chiefs insist clubs
who flout the new rules should
expect to have points deducted.
Cap on wage bill increases
n Wage bills may not be increased
annually by more than 4m, starting
from next term, except in two cases:
1) the clubs salary spending is less
than 52m currently, thereby
allowing promoted clubs to vastly
increase wage bills; 2) clubs use extra
cash generated by rises in matchday
and commercial revenue. This latter
clause is designed to ensure that a
projected 20m per club rise in
television revenue from next season
is not immediately absorbed by wage
inflation, as it has been historically.
FRIDAY 8 FEBRUARY 2013
THE FORUM: Page 23

West Ham captain Nolan calls for transfer
window to be scrapped: Page 30