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BUSINESS WITH PERSONALITY

COVENT Gardens arcade has been decorated with Union Jack bunting this week to mark Londons
celebration of Queen Elizabeth IIs Diamond Jubilee. Other festivities this weekend will include a
festival of boats on the Thames and the lighting of more than 2,000 beacons around the country.
CITY leaders yesterday welcomed the
governments decision to scrap the
proposed charity tax, a policy that phi-
lanthropists say would have under-
mined giving at a time when charities
are in desperate need of new funds.
Announcing the Treasurys third
budget U-turn of the past week, chan-
cellor George Osborne said the debate
over capping tax relief from charitable
donations had become a distraction.
Frankly, at a time like this the gov-
ernment is going to focus on the big
issues like the worsening Eurozone cri-
sis and Britains deficit, and not get dis-
tracted with unnecessary arguments.
Osbornes decision came the day
after leading venture capitalist Jon
Moulton said that he would stop
donating to the Conservative party
www.cityam.com FREE
after becoming disillusioned over the
charity tax, and other economic issues.
Last night Moulton told City A.M. that
he absolutely supported the decision
to drop the policy but the govern-
ment should have done it earlier.
[The cap would have] discouraged
large gifts to charity and they can sub-
stitute for government cuts. I regard
myself as insensitive but this is well off
the scale of what Id normally do.
Heather Self, tax specialist at law
firm Pinsent Masons said: The govern-
ment appears to have conceded that it
was wrong to draw charities into a cat
and mouse game of tax avoidance.
This was a poorly thought through
proposal which would have harmed
charities without being well-targeted
on abuse.
Despite the U-turn the government
will push ahead with plans to cap other
FTSE 100 5,306.95 +9.67 DOW t12,393.45 -26.41 NASDAQt2,827.34 -10.02 /$ t1.54 -0.01 / t1.25 unc /$ 1.24 unc
ISSUE 1,645 FRIDAY 1 JUNE 2012
LONDON READY FOR
THE JUBILEE
ALLISTER HEATH: Page 2

Certified Distribution
02/04/2012 till 29/04/2012 is 100,668
BY JAMES WATERSON
CITY CHEERS
U-TURN ON
CHARITYTAX
forms of tax relief at 50,000 a year, or
25 per cent of an individuals income.
Critics say going ahead with this pol-
icy will affect reliefs that are designed
to encourage entrepreneurship, such
as relief for trading losses and interest
relief for borrowing.
While the desire to stop the abuse of
these allowances by the minority is
understandable, the restriction of
these reliefs for all high earners risks
discouraging entrepreneurial activity,
said Carolyn Steppler of Ernst & Young.
Gareth Thomas, shadow charities
minister, said the policy has already
done considerable damage.
Sir Stuart Etherington of the
National Council for Voluntary
Organisations praised the decision:
This is a victory for common sense.
This is a great day for philanthropy.
COVENT GARDEN CELEBRATES
See Page 2, Punter Page 28-29, Sport Page 31
See Page 2, Diary 14-15,
Forum 22, Lifestyle 24-25
A RIGHT ROYAL WEEKEND
INVESTEC DERBY
SPECIAL SATURDAY EDITION
IN BRIEF
JPMs Dimon to explain $2bn loss
n JP Morgan Chase chief executive
Jamie Dimon will testify before the US
Senate Banking Committee on 13 June
to discuss the banks recent trading
losses, the committee said yesterday.
Earlier this month, JP Morgan said it
had suffered at least $2bn in losses
from a set of trades that were meant
to hedge risk. Regulators are probing
the losses before making a decision
about whether the bank and others
need to scale back their risk.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
CITY A.M.
INVESTEC DERBY
SPECIAL EDITION
Davis to get 30m but no
raise for Xstrata investors
XSTRATAS top staff will share a
173m reward for sticking with the
firm during its mega-merger with
Glencore, documents revealed yes-
terday.
As Xstrata shareholders learned
that Glencore has refused to budge
on its offer of 2.8 new shares for each
Xstrata share, the circular showed
that a group of around 70 managers
and senior employees will be handed
a slice of the huge payout as a
reward for their loyalty.
Mick Davis, who will be chief exec-
utive of the enlarged group, stands
to make almost 30m on top of his
salary and long-term bonuses if he
stays with the firm for the next three
years.
Investors including Standard Life
and Schroders have already voiced
concerns that top staff are being
rewarded handsomely while
investors stand to win a premium of
just 11 per cent for their stock.
But the mining giant warned
shareholders against a protest vote
against the payouts, pointing out
that the deal will collapse if a sepa-
rate management incentive
arrangements resolution fails.
Glencore shareholders will vote on
the merger on 11 July, followed by
Xstratas investors the following day.
The firms expect the merger to close
Osborne sues to deter EU overreach
George Osborne is taking legal action in a
bid to stop the EU from overreaching its
powers by giving a pan-European
supervisor the right to ban short selling of
financial products. The chancellors
decision to sue reflects his determination
to prevent EU institutions overstepping
their mandate, rather than any opposition
to short selling regulation reforms, which
he strongly supports.
Potanin may cancel Norilsk stock
Vladimir Potanin, the biggest shareholder
in Norilsk Nickel, said the Russian miner
may cancel up to 10 per cent of the
companys stock held via subsidiaries, a
move that could ease a corporate
governance conflict over the business. The
board could make a decision before the
end of the year.
Potential bid for American Airlines
Private equity group TPG and US Airways
are in talks over a joint bid for AMR Corp,
the parent company of American Airlines,
according to people familiar with the
situation. American, the third-largest US
carrier, filed for bankruptcy protection in
November citing untenable labour costs.
Bankers are proud of Facebook
Morgan Stanleys boss has defended his
banks role in the Facebook IPO, claiming
that there was no nefarious activity
involved. James Gorman told staff they
should be proud of their work and the
listing should be judged over time.
Taxman to scour Covent Garden
Traders at Londons markets, including
Covent Garden and Petticoat Lane, are set
to be blitzed by tax inspectors over the
next few months as pressure intensifies
on firms that are not paying their dues.
Mirror bosses wanted to buy firm
The editors of the Daily Mirror and the
Sunday Mirror were secretly planning to
take over the company before they were
sacked. Richard Wallace and Tina Weaver
were ousted on Wednesday. It has now
emerged that Mr Wallace and Ms Weaver
were plotting to take over the company.
Walmart faces revolt over bribes
Walmart is braced for an AGM protest in
the wake of allegations that up to $24m
(15.6m) was paid to Mexican officials to
help speed up the firms expansion.
Auto maker pulls back in Brazil
Another luxury auto maker is pulling back
on plans to invest in Brazil. Jaguar Land
Rover, the luxury-car unit of Indias Tata
Motors, yesterday followed Germanys
BMW AG in suspending plans to build a
new plant in Brazil.
Russian ruble at crisis levels
The Russian ruble plummeted to its
lowest level in more than three years
against the dollar yesterday, bruised by
falling oil prices and a fresh round of
European sovereign debt worries.
WHAT THE OTHER PAPERS SAY THIS MORNING
SPORTSWEAR giant Nike is
putting its Cole Haan and Umbro
labels up for sale to focus on its
biggest-selling core brands.
The US company said yesterday
it is starting the process straight
away and hopes to complete the
sale by May next year.
It is now time to seek a buyer
for Umbro and Cole Haan to
further focus ... on driving growth
in the Nike brand, Jordan,
Converse and Hurley, stated Nike,
which has forecast 1.5bn sales of
football-related products this year.
Nike gives tick
to brands sale
Mick Davis, the Xstrata chief who will earn a 30m bonus for running the merged group
2
NEWS
BY JENNY FORSYTH
BY MARION DAKERS
To contact the newsdesk email news@cityam.com
F
OR charities and their donors,
including many in the City,
George Osbornes latest and
most spectacular u-turn comes
as a perfect Jubilee weekend present.
The Chancellor had announced in
the Budget a limit of 50,000 or 25
per cent of income, whichever was
higher, on the amount individuals
could donate in a tax-deductible
fashion; the idea was
unceremoniously dumped yesterday
after pressure from philanthropists,
furious at being portrayed as tax
avoiders by a government which had
previously encouraged charitable
work and the Big Society. It is a major
humiliation for the Chancellor, who
has also partly u-turned on his pasty
and caravan tax plans. Pressure
groups will feel emboldened to try
and derail all measures in future
Budgets. These will be seen as starting
EDITORS
LETTER
ALLISTER HEATH
George Osbornes latest tax U-turn is a great Jubilee present
FRIDAY 1 JUNE 2012
points, working papers even, rather
than final pronouncements on
financial matters.
But even though this was by some
accounts the governments thirtieth
U-turn, more are needed. Other, dam-
aging tax hikes masquerading as
reforms have not been scrapped.
Osborne is pressing ahead with a cap
on other income tax reliefs, including
for trading losses and interest relief
for borrowing (this applies to individ-
uals who take out loans in their own
name to help their business).
Astonishingly, these actually target
those setting up and running unquot-
ed businesses and are bound to throt-
tle expansion and job-creation plans.
There is an overwhelming argu-
ment to stop promoting debt in the
tax system, and to make its treatment
similar to equity, even though
Osborne is constantly dreaming up
new ways to subsidise loans. But it
makes no sense to eliminate interest
relief on loans to companies while
simultaneously complaining about
the lack of finance for small start-ups.
Once again, this is the very opposite
of joined up government.
The real scandal, however, is the cur-
tailing of loss relief: this makes no
sense on any measure. Any abuse of
these allowances by a minority
should be stopped but the principle
of paying income tax on actual, posi-
ous Budgets policies. Either he does-
nt fully understand what he is doing
or economic policy in this country
truly is a contradictory muddle.
HAPPY DIAMOND JUBILEE
In an era where duty has gone out of
fashion, the Queen stands out as an
extraordinary example of selfless ded-
ication. A public servant like no other,
through good as well as bad times,
she is a remarkable symbol of
Britains continuity, stability and
unity in an ever-changing world. She
deserves all of our heartfelt thanks.
For those of you attending the
Investec Derby, we hope you enjoy our
special Saturday edition and we
wish all our readers a great Jubilee
weekend.
tive income, not losses, is a basic tenet
of the tax system. A self-employed
worker who sets herself up in year
one, incurring 60,000 in net start up
losses, and then earns 60,000 in year
two, would currently not pay any
income tax over that period as she
would have earned nothing overall.
Under Osbornes plans, however, she
will pay tax on zero net income.
This is as outrageous as it is stupid.
Osborne has also previously
increased income tax relief for
Enterprise Investment Schemes (EIS),
especially for those financing angel
start-ups yet his assault on loss relief
will cancel out much of this help and
reduce the flow of EIS investments.
Im no fan of these sorts of fiddly
schemes as I want a drastically lower
and simpler tax system but Osborne
loves them. Yet this Budget is stealth-
ily reversing the effects of his previ-
in the third quarter of the year.
But the firms need 75 per cent
approval to pass the tie-in, leaving
power to block the deal in the hands of
a relatively small group of disgruntled
institutions.
The firms advisers will make up to
$200m if the deal goes ahead.
Glencores bankers, including
Citigroup, Credit Suisse and Morgan
Stanley, will share a pot of up to $50m
for financial and corporate broking
advices. Xstratas team of Deutsche
Bank, JP Morgan, Goldman Sachs and
Nomura will split as much as $80m.
Xstratas PR team will scoop up to
2.8m for the duration of the merger,
while lawyers for the two firms are set
for a 25m payday.
The firm expects to make earnings
before tax, interest, depreciation and
amortisation of $500m for first full
post-merger year. Xstratas independ-
ent directors said yesterday the biggest
firm is best positioned to succeed in a
changing industry landscape.
The new jobs website for London professionals
CITYAMCAREERS.com
n Waterloo Station
n Victoria Station
n Epsom Station
n Tattenham Corner Station
n Epsom Downs Race Course
City A.M., the official
newspaper of the Investec
Derby, will be publishing its
special Saturday edition for
racegoers tomorrow.
Readers can pick up their
copies at these stations,
among others, from 9am:
CRUDE oil futures plunged more
than one per cent yesterday to end
May with their biggest monthly
decline in more than three years.
In London, ICE Brent crude
futures for July delivery settled at
$101.87, down $1.60, the lowest
finish for front-month Brent since
4 October. Front-month Brent fell
14.7 per cent for the month, its
biggest monthly decline since
December 2008.
Brent has fallen more than 21
per cent from its 2012 high of
$128.40 hit in March.
Oils May loss is
worst in 3 years
BY CITY A.M. REPORTER
LOGICA shares soared by 69 per cent
yesterday after CGI Group Holdings
offered to pay 1.7bn in cash to buy
the computer services company.
CGI, a Canadian IT company, said
the 105p per share offer represented
a 59.8 per cent premium to Logicas
closing share price on Wednesday.
The deal has garnered unanimous
support from Logicas directors and
irrevocable undertakings from
Schroder and Artemis, the British
companys biggest shareholders who
collectively own an 18 per cent stake.
Both funds reserved the right to
withdraw their support if an offer
higher by 10 per cent comes along
an outcome which some analysts
have pegged as likely, particularly
since Logicas shares jumped to
almost 6p above CGIs offer price.
George OConnor at Panmure
Gordon said, Logica is one of the
cheapest IT service companies, and
even at acquisition multiples it is
attractive enough to flush out anoth-
er buyer. The potential buyers are
numerous (start at IBM, or Accenture
and just walk down the list).
But Paul Morland at Peel Hunt dis-
agreed, saying: The bid looks oppor-
tunistic but has been agreed and is
BY LAUREN DAVIDSON
unlikely to be countered in our view.
Logica is the third British tech com-
pany to be bought by an American
company in the last year.
HP bought Autonomy last October
for 6.2bn, and private equity firm
Vista offered 1.27bn for Misys earlier
this year.
OConnor said CGIs bid may well
mark the beginning of the end of a
fraught road for Logica shareholders,
who have seen value destroyed over
the past years.
In the past 12 months, Logica shares
have lost more than half of their
value following two profit warnings.
CGI said it has received debt fund-
ing from Canadian Imperial Bank of
Commerce, National Bank of Canada
and The Toronto-Dominion Bank
financed the acquisition.
Logica was advised by a bumper team com-
prising Rothschild, Deutsche Bank and Bank of
America Merrill Lynch.
Heading the Rothschild group was Warner
Mandel, global head of media and technology,
who advised BT on the sale of Yell and Trinity
Mirror on the sale of Racing Post.
Mandel was joined by TMT director Jeremy
Millard, who was involved in the 4bn
demerger of Cable & Wireless, and Nick Ivey,
who worked on the 1.3bn takeover offer of
Alliance and Leicester by Banco Santander.
Logicas advisory team at Deutsche Bank
comprised Richard Sheppard, the banks head
of UK M&A, Charles Wilkinson, co-head of UK
corporatebrokingandCharles Bryant, head of
EMEA technology. Logica hired Simon
Gorringe, Guy Hayward-Cole and Andrew
Tusa at BoA Merrill Lynch.
On the CGI Group side, the Goldman Sachs
team which also advised Vista on its Misys
acquisition included Gregg Lemkau, head of
M&A for Europe and Asia, and Nicholas van
den Arend, a fairly new MD at the rm after
moving on from being a business develop-
ment manager at Misys. Thetwowere joined
by Nick Harper, an MD who has worked on
several high prole deals including Guocos
takeover of Rank Group and Boots merger
with Alliance UniChem. by Anaam Raza
ADVISERS ROTHSCHILD
WARNER MANDEL
GLOBAL HEAD OF MEDIA
US joins global slowdown with
another rise in jobless claims
THE US outlook took a blow
yesterday as unexpectedly high
unemployment figures, weak
business data, and a downward
revision to GDP growth all cast
doubt on the strength of the global
leaders recovery.
Official data recorded 383,000
new claimants for unemployment
benefits last week, up 10,000 on the
week before and the fourth
consecutive rise reversing the slow
decline seen over earlier months.
Similarly, figures from private
BY TIM WALLACE
payrolls processor ADP showed
private employers created 133,000
jobs in May, below the expected
148,000.
The Chicago business barometer
slowed to its lowest level since
September 2009 last month, with
the production index falling from
57.1 in April to a seasonally adjusted
50 in May showing production flat
on the month.
Meanwhile the Commerce
Department revised its first quarter
GDP estimate to show annualised
growth of 1.9 per cent, not the 2.2
per cent first thought, in part
because consumer and government
spending was lower than first
thought.
That represents a slowdown from
the three per cent GDP growth seen
in the final quarter of 2011, in part
because corporate profits expanded
by $11.4bn (7.4bn), slower than the
$16.8bn rise in the previous quarter.
The economy is growing at an
anaemic pace and the job market is
showing some signs of hesitation in
the pace of hiring, warned
economist Paul Edelstein from IHS
Global Insight.
There is a lot to worry about.
FORMULA ONE PUTS BRAKES ON ITS FLOAT
Logica PLC
29May 30May 31 May 25May 28May
120
110
100
90
80
70
p 110.90
31May
FRIDAY 1 JUNE 2012
3
NEWS
cityam.com
CGI swoops in
with 1.7bn bid
for UKs Logica
FORMULA Ones chief Bernie Ecclestone last night signalled that its IPO could be pushed back
by several months due to the current market turmoil. F1 is planning to float in Singapore, with
premarketing for the $3bn (1.95bn) IPO already under way. Ecclestone had said he had
hoped to complete the IPO by the end of June but now is waiting until the right time.
Depositors rush to
leave Spains banks
Bankia SA
29May30May 31 May 25May28May
1.60
1.50
1.40
1.30
1.20
1.10
1.00

1.04
31May
4
NEWS
SHARES in bankrupt Spanish
lender Bankia were suspended
from trading yesterday as the
European Commission told
Madrid that it must end
uncertainty over its bailout
plans.
EU commissioner Amadeu
Altafaj said: What we need first
of all is for the Spanish
government to tell us its
restructuring plans for Bankia,
what options it is considering...
The sooner uncertainties are
removed the better.
Spain has caused confusion by
first floating a plan to recapitalise
Bankia by handing over 19bn
(15.2bn) of government bonds
and then getting the lender to
swap them for cash at the
European Central Bank.
BY JULIET SAMUEL
That plan was reportedly
rejected by the ECB, but with
Spains borrowing costs soaring,
it is not clear if the government
is prepared to issue new debt to
rescue its banks.
Bankias share price has more
than halved since the start of
May.
TENS of billions of euros left Spains
risky banks last month, central
bank data showed yesterday, as
depositors took cash to safer
locations abroad at the fastest rate
since records began in 1990.
A net total of 66.2bn (53bn) was
sent abroad, up from 5.4bn in the
same month last year and showing
an acceleration after 97bn was
pulled out of the country in the
first quarter of the year. The data
shows this capital flight came even
before Bankias recent troubles and
likely 19bn (15.2bn) bailout, as
well as calls for several smaller
banks to be given
aid.
The figures
came as ratings
agency Fitch
downgraded
eight profligate
Spanish regions,
warning that
considerable
additional efforts are
needed if the
autonomous
communities are to tackle their
structural fiscal deficits and begin
to bring down borrowing costs.
Falling tax revenue and a lack of
wide-ranging structural reforms to
public services are both causes for
concern in the regions, including
Andalucia and the Canary Islands,
while risks lie ahead as a large
proportion of debt falls due in the
second half of the year.
Furthermore, Fitch warned that
some of the regions ratings rely on
the backing of the central
government Mariano Rajoy saw
the budget deficit rise in the first
four months of this year thanks to
handouts to regional governments
and so any weakening of this
support would result in further
negative rating actions.
IMF managing director
Christine Lagarde yesterday
denied reports that the IMF
was considering contingency
plans for a Spanish bailout.
BY TIM WALLACE
Brussels urges Spain to clarify
its plans for Bankia bailout
The IMFs head Christine
Lagarde denied plans
for a Spanish bailout
GREECES biggest banks have lost
over a fifth of their deposits over
the last year, it emerged yesterday,
as Eurobank EFG and Alpha Bank
reported losses for the first quarter
of 2012 and a worsening in the
quality of their loanbooks.
Adding their data on customer
deposits to that of Piraeus Bank
and National Bank of Greece,
shows that total deposits for the
four banks have shrunk from
174bn in March last year to
138bn in March this year.
In the first quarter of this year,
they shrank by 3.3 per cent in
aggregate, but most banks noted
that while deposits had been
improving this year, they started to
decline following the inconclusive
election results in early March. It is
not yet clear how much money has
left the banks since the end of
March, because the results only go
up to 31 March.
And the figures also disguise the
true extent of how much money
has left Greece, because they
include overseas subsidiaries, but
nonetheless paint a grim picture of
declining customer confidence.
Greek deposits
shrink by 21pc
BY JULIET SAMUEL
THE EUROZONES governments will
need to give more powers to Brussels
and cooperate far more closely on
taxes, spending and financial regula-
tion, European Central Bank (ECB)
boss Mario Draghi said yesterday, urg-
ing leaders to act quickly to stamp out
doubts over the unions future.
Can the ECB fill the vacuum of lack
of action by national governments on
fiscal growth? The answer is no,
Draghi told the European Parliament.
Instead, he argued, it is down to
national governments to answer the
questions troubling investors and
leading to chaos in Europes markets.
How is the euro going to look like a
certain number of years from now?
The sooner this is specified, the better
it is, Draghi said.
In his role as chair of the European
Systemic Risk Board (ESRB), Draghi
called for greater centralisation of
financial controls, saying national and
European financial regulators must
act in unison, with speed and a total
commitment to financial stability.
ECBs Draghi in
push to unify
banking power
BY TIM WALLACE
Draghi believes a three pillared
banking union as ECB policymakers
have called it, would carry an impor-
tant message that the bloc was united
in support of its lenders, regardless of
which country they are in, and that it
would represent a symbolic first step
towards closer fiscal ties.
His demands for a solution to the cri-
sis, and for controls to prevent a simi-
lar situation arising again, came as
credit ratings agency Fitch issued a
report detailing the possible conse-
quences of a Eurozone break-up.
The widespread redenomination of
debut would cause defaults on private
and sovereign euro-denominated obli-
gations, imposition of capital con-
trols and severe economic and
financial dislocation, Fitch said.
New currencies would plummet, the
report warned Greeces to 57 per
cent of its current value against
Germany, for example.
These events would have major
knock-on effects, said Fitch, including
recession, inflation, lack of credit,
bank deposit restrictions and poten-
tial social and political instability. The ECBs Mario Draghi says centralisation can end the sovereign debt crisis
IRISH voters cast their ballots on the
Eurozones latest fiscal pact
yesterday, though yes campaigners
worried that the wet weather would
discourage supporters from going to
the polling stations.
The result of the referendum is
not expected until this afternoon,
though opinion polls before the vote
had put Ireland on course to
comfortably back the treaty.
Ireland is the only Eurozone
nation to have given its voters a say
on the austerity pact.
Ireland casts its vote on the
Eurozone austerity agreement
BY MARION DAKERS
Major political parties Fine Gael
and Fianna Fail lobbied hard for a
yes vote, warning that Ireland
could be cut off from the new
European Stability Mechanism
bailout fund if it votes against it.
Ireland has given the thumbs
down to two recent Eurozone
referenda, though voters later
supported the measures when
politicians called a second poll. On
occasions when the no vote has
won, turnout has been low.
Taoiseach Enda Kenny urged the
Irish to back the treaty when he cast
his vote yesterday morning.
FRIDAY 1 JUNE 2012
5
NEWS
Q
What, theres another referendum in
Ireland?
A
Yes, Ireland is once again the only
European country to give its
population a direct say on a financial
deal for the Eurozone.
Q
And what are they voting on this time?
A
The same deal that David
Cameron kindly saved Britain
from voting on last year, by vetoing it
for us. The accord for the rest of
Europe puts in place a permanent
bailout fund the European Stability
Mechanism plus commitments to
stick to austerity plans and work on
further fiscal integration.
Q
What happens if
Ireland votes no?
A
If the yes campaigners
are to be believed, European
authorities could block Irelands
access to the bailout fund.
Q
And should we believe them?
A
The no campaign said not, and
want Ireland to chance its arm
reject the austerity plans, safe in the
knowledge that the rest of the
Eurozone would relent and bail it
out anyway, if needed. But Irish
politicians, most of whom support a
yes, are unlikely to relish a game of
brinkmanship with Angela Merkel.
Q
A
and
Irelands referendum
G
E
T
T
Y
cityam.com
EUROZONE inflation eased further
than expected to its lowest level in
more than a year in May, official
data showed yesterday, giving the
European Central Bank (ECB) a
little more room to lower interest
rates amid fears of deep recession
across the continent.
Consumer price inflation in the
17 nations sharing the euro fell to
2.4 per cent year-on-year in May
from 2.6 per cent in April, the EU's
statistics office Eurostat revealed.
Meanwhile official data showed
German retail sales rose 0.6 per
cent in April, down from 1.6 per
cent in March but still stronger
than the drops recorded in other
parts of the Eurozone.
German unemployment
dropped slightly to 6.7 per cent,
again underlining the economys
resilience.
Fall in Europes
inflation rate
BY CITY A.M. REPORTER
3i Group PLC
29May 30May 31 May 25May 28May
175
174
173
172
171
170
169
p 174.70
31May
Jeremy Hunt was
in regular contact
with News Corp
GOLDMAN Sachs chief executive
officer Lloyd Blankfein (pictured)
will testify at the insider-trading
trial of the investment banks
former director Rajat Gupta, a US
prosecutor said in court yesterday.
Assistant US attorney
Reed Brodsky said
yesterday that
Blankfein could be
preceded by seven
other government
witnesses, making it
likely he
would take
the stand
next week.
Goldman chief
is set to testify
BY CITY A.M. REPORTER
PLUS Markets was caught by surprise
yesterday when Gulf Merchant Bank
returned with a revised offer for its
stock exchange unit.
The embattled firm, which
yesterday called a meeting to
approve ICAPs takeover, had no
prior warning of GMBs improved
bid for an undisclosed sum.
GMB said in a statement that it
has remained in close contact with
the FSA throughout this process.
Plus surprised
by GMB offer
Greenhill hires
for Europe push
BY MARION DAKERS
GREENHILL & CO said yesterday it
will add three managing directors
in Europe, including ex-Goldman
Sachs banker Luca Ferrari, as the
boutique advisory firm builds its
business across the continent.
Ferrarri will co-head the Europe
corporate advisory business, while
Deutsches Anthony Parsons will be
a senior member of its UK advisory
team and Mats Bremberg will join
its Stockholm office.
BY CITY A.M. REPORTER
BANKS are open for business, an
official government taskforce
headed by Professor Russel Griggs
has concluded, with just two per
cent of small firms whose lending
application was rejected having
appealed the decision.
Of those that did appeal, 40 per
cent ended up being able get some
form of credit. With only 14 per
cent of total SME applications
having been rejected in the first
place, the figures mean that just 0.2
per cent of credit-hungry firms
were rejected both by banks initial
lending decision and the
subsequent appeals process.
Banks deemed
open to lending
BY JULIET SAMUEL
THE new chief executive of 3i has
bought nearly 7m of shares in the
investments group in a show of faith
in his new strategy.
Simon Borrows has spent around
6.9m on 4m shares spread over
three days this week.
The veteran banker and former
chief investment officer, who took
over from Michael Queen in mid-
May, is thought to see now as a very
good time to buy 3i stock. It takes his
stake in the business to around 5.6m
shares or just over 0.5 per cent.
Borrows was previously chairman
of investment bank Greenhill & Co.
And he has been close to 3i for two
decades and worked on its flotation
in 1994. Last night 3is shares closed
up 3.01 per cent at 174.7p
It comes as more signs emerge of
its efforts to diversify away from tra-
ditional private equity
deals. 3i has signed
agreements to buy
seven European col-
lateralised loan obli-
gation management
Borrows digs in
at 3i with 6.9m
share purchase
BY PETER EDWARDS
contracts from Invesco, adding 2bn
in assets to its debt management arm
It takes total debt assets under man-
agement to 6bn.
It is Borrows first major deal since
taking the top job at 3i. He wants to
grow the debt management business
proportionately faster than the pri-
vate equity division in the belief that
it provides more constant returns.
Jeremy Ghose, head of 3i Debt
Management, said it continues to
look for a US deal in line with our
strategy of playing a leading part in
the consolidation of the debt market
and creating a global credit platform
of size.
Last year 3i bought the debt man-
agement unit of Mizuho Corporate
Bank for 18.3m and subsequently
merged it with its own debt manage-
ment activities.
FRIDAY 1 JUNE 2012
7
NEWS
cityam.com
Simon Borrows want to cut
costs and diversify at 3i
Culture secretary Jeremy Hunt told
he will not face ministerial code probe
DAVID Cameron said yesterday he
will not order an inquiry into
whether Jeremy Hunt broke the
ministerial code during News
Corps controversial 8bn bid for
BSkyB.
The announcement came after
the culture secretarys appearance
at the Leveson inquiry yesterday, in
which he admitted he was
sympathetic to the BSkyB bid and
said he considered resigning after
the correspondence with Fred
Michel was published.
Hunt said that he had worked
very closely with his former special
adviser Adam Smith, who knew
his views on the BSkyB bid, but
said this did not mean Smith
spoke for him.
Hunts appearance at
Leveson also revealed that he
sent James Murdoch
a message of
support for the
takeover bid on
the day he was
put in charge
of
adjudicating
on the bid.
Great
and congrats on Brussels, just Ofcom
to go! Hunt texted to Murdoch,
referring to a decision by EU
regulators in Brussels to
approve the BSkyB takeover.
Hunt was trying to reassure
a furious Murdoch after the
minister originally overseeing
the takeover, Vince
Cable, was removed
from adjudicating on
the bid.
BY LAUREN DAVIDSON
I
N an ideal world, ahead of the
Jubilee weekend, we would now
be looking forward to the listing
of Graff Diamonds shares in
London.
Graff's history is London through
and through. Founder Laurence
Graff started as a jewellery appren-
tice here in 1950 and then 12 years
later opened his first two stores in
the capital.
But the Mayfair-based jewellers
chose instead to go to Hong Kong to
try to raise $1bn. Sadly on
Wednesday evening we learnt that
its efforts had failed.
So why didnt the company and
its advisers Rothschild choose to
float in London and would it have
made any difference to the outcome
if it had?
The most obvious reason is that
the London IPO market is virtually
dead. There have been barely any
decent-sized IPOs in London since
Glencore last year, with the
Eurozone crisis overshadowing a
market in which both buyers
(institutional and retail investors)
and sellers (private equity groups
and entrepreneurs) massively
distrust each other.
There have been far too many
underperforming new issues, from
companies such as Ocado to
Debenhams, to make would-be
investors comfortable.
The reason often given for UK
luxury companies listing in Asia is
that they are better understood
there. To many bankers, this is
short-hand for saying that the Asian
markets will be sympathetic to
higher multiples and (some also
think) they will be less suspicious
than their peers in either Europe or
New York of the reasons for listing.
Graffs failure to list shows that
the Asian investors are not quite so
easily pleased.
46 intended IPOs have already
failed in Asia ex Japan already this
year, 33 per cent up on last year. In
the case of Graff investors were
unnerved by the fact that 44 per
cent of the companys revenues
came from 20 clients; that Graff's
wife was selling some shares in the
float and that founder Graff stood
to gain from the sale of inventory if
the share issue went ahead.
In other words the Asian investor
base was no more convinced than a
European one would have been that
the company had a real plan that
would benefit from a listing and
that it was not all happening
mainly for the interests of the
founder and his family.
Graffs IPO plans would have been
torn apart in London just as they
were in New York.
But it is possible to float in
Europe, or at least it was until a few
weeks ago, if you have the right
strategy. Bruno Cucinelli, the
expensive menswear group,
recently floated on the Milan stock
exchange and it has seen its shares
perform well since. It was in many
ways a model flotation.
Investors around the world need
less greedy sellers with more
thought through plans.
Runing away to Hong Kong or
Singapore as an act in itself without
the other factors being put in place
will prove to be no solution.
david.hellier@cityam.com
Follow me on Twitter @hellierd
BOTTOM
LINE
DAVID HELLIER
Lord Blackwell (left) and
Carolyn Fairbairn
FRIDAY 1 JUNE 2012
8
NEWS
cityam.com
CONTINGENT capital bonds risk
increasing volatility in financial mar-
kets and undermining banks safety,
rather than enhancing it as planned,
a Bank of England report warned yes-
terday.
Cocos, as they are commonly
known, act as debt but convert into
equity when a bank looks like it is
getting in trouble usually when the
share price falls below a set trigger
level.
This is intended to shore up the
banks position by increasing its loss-
absorbing potential, but the report
warned that shareholders and coco
investors face different and compet-
ing sets of incentives.
These could lead to market manip-
ulation and increased volatility, dam-
aging the stability of the financial
system as a whole, the Bank said.
With a trigger metric based on a
banks equity price, there would be a
risk that investors may short-sell a
banks equity to drive the equity
price down, said the report, written
by Gareth Murphy, Mark Walsh and
Matthew Willison.
That would trigger a conversion of
the cocos despite no deterioration in
the underlying value of the banks
Experts at Bank
of England say
no no to cocos
assets actually taking place, giving
coco-holders a windfall gain.
Furthermore, investors might
interpret the fall as a signal about the
solvency position of other banks. This
could also raise the borrowing costs
of other banks in wholesale markets,
damaging the system as a whole, the
report warned.
Alternatively, incumbent sharehold-
ers could conspire to keep the share
price artificially high, preventing cocos
from converting and so stopping their
shareholdings being diluted, it said.
When deciding on the structure
and makeup of capital rules, policy-
makers should consider the risk that
it would be possible for holders of
precautionary contingent capital to
run before a conversion occurs, the
paper concluded.
Alternative types of coco with differ-
ent trigger points were also dis-
cussed, some of which may reduce
incentives to manipulate a banks
share price. For example, those with a
systemic trigger could convert debt to
equity when the aggregate state of
the banking system deteriorates, per-
haps triggered by moves in a wider
equity index. As a result, the hope is
that cocos could act to shore up the
position of the system as a whole,
rather than undermine it.
LLOYDS has appointed two ex-
McKinsey partners as non-executive
directors, including a former board
member of the FSA.
Carolyn Fairbairn will join the
board today, having been a
non-exec director of the
FSA from 2008-2011. She
was also an executive at
ITV and has worked at
the BBC, the World
Bank and as a partner at
McKinsey.
Lord Blackwell,
another former
Lloyds bank brings two former
McKinsey partners on board
BY JULIET SAMUEL
BY TIM WALLACE
McKinsey partner, will also join the
banks board. He is a non-executive
of Ofcom, the media regulator,
chairman of infrastructure services
firm Interserve and until earlier
this year was a director at Standard
Life, a major Lloyds shareholder. In
addition to Sara Weller, who joined
the board in February,
they replace outgoing
directors Glen Moreno,
Lord Leach and Julian
Horn-Smith.
Graff Diamonds Hong Kong adventure ends in disaster
STRICKEN tour operator Thomas
Cook insisted it was on the path to
recovery yesterday after it revealed
widening losses in the first half of
the year, sending shares tumbling
seven per cent.
The debt-laden company posted an
underlying pre-tax loss of 328.3m
for the six months to the end of
March, some 40 per cent wider than
the loss it reported in the same
period a year ago. Its revenues rose
2.4 per cent to 3.51bn.
Interim chief executive Sam
Weihagen, who will be succeeded by
Harriet Green in July, said the
groups turnaround plans were
making good progress and that
bookings had picked up in recent
months, with year-on-year UK
bookings up five per cent over the
last four weeks.
He played down the impact of a
Greek exit from the Eurozone, and
said he expected to see a surge in
booking to Greece if it were to
happen as holidays to the
Mediterranean nation would
become better value for hard-pressed
travellers.
The company has made a series of
disposals in recent months to reduce
its 890m debt. Earlier this week
shareholders overwhelmingly
backed the disposal of five Spanish
hotels and the sale and leaseback of
part of its aircraft fleet.
Thomas Cook
reports wider
first half losses
BY KASMIRA JEFFORD
G
E
T
T
Y
INVESTORS bought into the idea of
Intercontinental Hotels Group (IHG)
as a takeover target yesterday, follow-
ing news that prominent activist
investor Nelson Peltz has a 4.27 per
cent stake in the firm.
Shares in IHG jumped 6.1 per cent
after US hedge fund impresario Peltz
declared his stake through Trian
Fund Management.
In recent months, billionaire
investor Peltz has revealed stakes in
companies ranging from PepsiCo to
Heinz and Ingersoll Rand in an effort
to push for changes. In some cases,
Trian has sold its investment soon
after, as happened with Pepsi.
There has been growing talk recent-
ly that IHG could eventually be taken
over, intensified by the emergence of
the noted activist investor.
Wyn Ellis at Numis said earlier in
the week that consolidation is
inevitable at some stage for the hotel
industry.
He told City A.M. yesterday:
Obviously I do not know what Peltzs
motivation for acquiring a stake in
Intercontinental
soars as activist
declares stake
BY MARION DAKERS
IHG is, but he has a track record as an
activist investor. On fundamentals,
IHG is an extremely attractive stock.
If and when consolidation happens
in the hotel sector, it will be a perfect
target for a number of potential bid-
ders with Marriott the first among
them.
Panmure Gordon analyst Simon
French said: The companys strategy
has been pretty successfully executed,
and the shares are close to an all-time
high.
Its hard to see what the obvious
move is, besides industry consolida-
tion, though even that is not necessar-
ily sensible at this stage in the cycle.
THE mere mention of Nelson Peltzs
name is enough to send a shiver down a
boardrooms collective spine. The hard-
hitting hedgie can claim responsibility
for the break-up of Cadbury Schweppes,
a big restructuring at Legg Mason and
for shaking out the waste within State
Street.
Once he builds a stake in a firm big
enough to declare, he tends to move
quickly to push for change.
As yesterdays announcement showed,
traders pile into the targeted firm in the
hope he will whip a firm into shape
even if, as in IHGs case, his intentions
are not obvious.
The news of his $150m stake in PepsiCo
last November caused its shares to jerk
up three per cent in the hopes of an
overhaul, only for Peltz to dispose of his
stake just three days afterward.
But when he does stick around, the New
York natives aggressive tactics have
generated handsome profits for
investors in his Trian Partners fund,
which returned a reported 7.02 per cent
net of fees last year.
He is known to use a strategy of
operational activism, getting
involved in the day-to-day running of
the firms in order to knock them into
shape.
He sold his first firm, Triangle
Industries, for $4.2bn in 1988, and went
on to agitate for change at a string of
fast food groups including Wendys and
Snapple.
The married father of 10 is worth $1.1bn,
according to Forbes magazine. He
dropped out of Wharton business
school at the University of Pennsylvania
in the 1960s. by Marion Dakers
PROFILE: NELSON PELTZ
InterContinental Hotels Group PLC
29May 30May 31 May 25May 28May
1,540
1,520
1,500
1,480
1,460
1,440
1,420
p 1,526.00
31May
Nelson Peltz disclosed a stake in IHG yesterday
FRIDAY 1 JUNE 2012
10
NEWS
cityam.com
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celebrate the Jubilee
weekend with 50% off
O
p
e
n

a
l
l
B
a
n
k

H
o
l
i
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a
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W
e
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k
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n
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TOP insurers face curbs within five
years on risky non-traditional
activities, global regulators said
yesterday as they seek to avoid a
repeat of AIGs huge taxpayer bailout
in the financial crisis.
Leaders of the worlds top 20
economies (G20) have asked the
industrys regulators to design
tighter supervision for big insurers
that pose risks to the wider financial
system. Generali, AIG, Axa,
Prudential and Allianz are seen as
candidates for inclusion on a list of
systemic insurers that the G20s
regulatory task force, the Financial
Stability Board (FSB), will publish
next year. Forty-eight big insurers
will be examined to see if they
should be on the FSB list.
Selection will be based on five
factors: size, global activity,
interconnectedness, non-traditional
activities, and substitutability, or
whether a firm has a big part of the
market that cannot be filled easily by
another company.
The G20 initiative is part of a global
response to the financial crisis.
Top insurers to
see curb on
risky activities
BY CITY A.M. REPORTER
THE car insurance industry is set to be
investigated by the competition
watchdog after it used the cost of
repairs and replacement vehicles to
jack up premiums by 225m a year.
Insurers compete in a dysfunction-
al manner, said the Office of Fair
Trading, as it referred the sector to the
Competition Commission.
The OFT said insurers of no-fault
drivers involved in accidents are earn-
ing fees from referrals to car hire
firms that provide vehicles at high
rates and for longer than necessary,
raising the bill paid by at-fault drivers
insurers.
The focus that insurers have on
gaining the competitive edge through
raising their rivals costs means that
drivers pay more than they need to
Car insurers set
to face inquiry
over charges
BY PETER EDWARDS
for their motor insurance policies,
said chief executive John Fingleton as
he made the provisional referral.
Nick Starling, director of general
insurance at the ABI, said: For too
long insurers have faced inflated rates
for credit hire cars and excessive hire
periods which have led to higher
insurance premiums for customers.
Analysts said an inquiry would make
a ban on insurers earning referral fees
more likely, potentially denting profit
at Admiral, which is more dependent
on such sources of income than rivals.
Eammon Flanagan at Shore Capital
said the probe would create uncertain-
ty which would hang over Admirals
stock for months to come.
Shares in Admiral fell on Wednesday
after Kevin Ryan at Investec warned
the firm is worth only around half its
current market value.
Pru buys Swiss Res
US arm for 400m
BRITISH insurance giant Prudential
yesterday announced the purchase of
Swiss Res US life insurance business
for $621m (401m) in cash.
The deal will be made through
Prudentials American subsidiary
Jackson National Life and will see
the firm acquire approximately
1.5m policies and assets worth
around 6.7bn.
This bolt-on acquisition is in-line
with our strategy and is a great
opportunity to increase the scale of
our life business. It is a capital effi-
cient transaction that will produce
an attractive internal rate of return
and payback period commensurate
with what we achieve organically on
writing new business, said Jackson
National chief executive Mike Wells.
Swiss Re said it sees attractive
growth potential in the UK and
Continental Europe and will use
the proceeds from this deal to invest
in more profitable businesses.
The transaction, which is due to
complete at the end of September, is
expected to contribute 100m to
BY JAMES WATERSON
Jackson Nationals pre-tax earnings
in the first year.
Pru estimates the embedded value
of the acquisition will be 865m at
the end of June, before cost savings
are taken into account.
Barrie Cornes, an analyst at
Panmure Gordon, called the pur-
chase a very attractive acquisition
which will provide further synergy
benefits and fits the Prudentials
overall strategy.
This is Prudentials first takeover
since the firms attempt to buy Asian
insurer AIA collapsed in 2010, leav-
ing it with a 377m bill for costs.
Shares in the firm closed up 0.8
per cent in London.
HMV confirmed yesterday the 32m sale of the Hammersmith Apollo to Stage-C, a
company jointly owned by 02 owner AEG and Munich-based CTS Eventim. The music
chain said that once the deal is sealed, the group will see 220m in bank loans extended
to September 2014. The iconic art deco venue has hosted gigs from Oasis to Elton John.
HMV OFFLOADS HAMMERSMITH APOLLO
Prudential PLC
29May 30May 31 May 25May 28May
695
690
685
675
670
680
p
678.00
31May
DEUTSCHE Bank CEO Josef
Ackermann stepped down after a
decade running Germanys
biggest lender yesterday,
telling shareholders the bank
is in outstanding shape.
Ackermann is credited with
steering Deutsche through
the financial crisis,
though, like rivals, it is
now suffering from the
Ackermann says goodbye to
Deutsche Bank after 10 years
BY JULIET SAMUEL
FRIDAY 1 JUNE 2012
13
NEWS
cityam.com
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fall-out of the euro crisis. Ackermann
took a shot at more profligate
Eurozone countries in his speech:
The economic conditions, debt
levels and the lack of will to carry
out reform in a few countries of
the Eurozone continue to give
rise to concern, he said. He is
being replaced by co-CEOs Anshu
Jain and Jrgen Fitschen.
Outgoing Deutsche boss
Josef Ackermann
14
E
VERYWHERE you turned
yesterday there seemed to be
rows and rows of festive flags
of red, white and blue
appearing in place for Queen
Elizabeths Diamond Jubilee
celebrations.
People strolling along Oxford
Street could hardly fail to notice the
abundance of bunting, crowns and
token corgis on display as retailers
clamour to lure customers in with
royally British merchandise.
There were union jacks hanging
from windows of council blocks in
Old Street, on the fringes of the City,
and the front of the fashionable
South Kensington nightclub Boujis
was adorned by a giant Union Jack
(see picture lower right). Leadenhall
Market (pictured upper right) was
also displaying two large flags.
Britons are expected to spend
823m celebrating Elizabeth IIs 60
years on the throne, nearly double
what they spent on last years royal
wedding, with 32 per cent planning
to buy snacks, drinks and decora-
tions to mark the occasion accord-
ing to research by online
comparison website moneysuper-
cityam.com
cityam.com/the-capitalist
Im going to be away in Hong Kong to attend some
business meetings so Ill miss the celebrations, and I
dont think Im going to be able to watch it on the television
either because theres a massive time difference. If I wasnt
going away then I probably would have gone to the street party
that my parents are arranging in their local community.
These views are those of the individuals above andnot necessarily
those of their company
ROBERT BARRIE
KAIZEN FINANCE

Im going to watch it on the river and Im going to


Florence with my girlfriend as its her birthday and mine
is coming up soon too; other than that some DIY and a barbecue
may be on the cards. I know a friend who is going skydiving over
the weekend but Im not sure if that has anything to do with the
Jubilee. I think the Jubilee is a good celebration of the monarchy
and I quite like the Queen. She does a pretty decent job!
TOM VAN DEN DRIESSCHE
KATHERINE THOMAS

My family is coming down to London from Birmingham


and Ill probably take the kids to a funfair that is taking
place in my local area in Hounslow high street. I remember when it
was the Golden Jubilee and everybody was excited and happy like
they are now. But apart from these single special days everybody
keeps questioning and complaining about the purpose of the Royal
family.
AAYUSH GOL
STATE BANK OF INDIA

WHAT ARE YOU DOING TO CELEBRATE THE


DIAMOND JUBILEE WEEKEND?
Interviews by Anaam Raza
CITYVIEWS
The pageantry
of the occasion
was nowhere
more on show
than on Regent
Street
London is
The bunting is out as the capital
L
A
U
R
A

L
E
A
N
/
C
I
T
Y
A
.
M
.
market.com.
After a battering from bad weather
and household finances squeezed by
low wage growth and high inflation,
retailers are looking for a much-need-
ed boost, said British Retail
Consortium economist Richard Lim.
Tesco, the worlds third-largest
retailer, has already sold 93,000
paper crowns and tiaras, 1,5000 miles
of bunting and 400,000 Jubilee mugs.
And thousands of schoolchildren
will be finishing up for half-term
today, having made flags, cakes and
other paraphenalia in preparation
for the four-day celebration.
Have a good extra-long weekend
and see you next Wednesday. The royal flags are flying high all over the country.
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
THECAPITALIST
FRIDAY 1 JUNE 2012
INVESTMENT management
firm Brewin Dolphin is giv-
ing away twenty tickets to City A.M.
readers for a special event with
sporting heroes and cocktails as
part of its fundraising push for the
London-Paris 2012 cycle challenge.
At the event, the winners of
Brewins online auction will be
announced, with fantastic sport-
ing prizes up for grabs including
the opportunity to cycle in
Majorca with the legendary cyclist
Stephen Roche, or play golf in The
Groves championship course with
the rugby player Zinzan Brooke.
Other prizes on offer include a
tour of Emirates Stadium with
Arsenal star Lee Dixon, and the
chance to have your next press
release written by former Number
10 comms boss Alastair Campbell.
Theres something for everyone at
www.brewin.co.uk/auction.
To be in with a chance of attend-
ing the charity cocktail reception,
donate over 25 online or buy a
25 raffle ticket at www.justgiv-
ing.com/250years, and email proof
of donation to info@brewin.co.uk.
Brewin offers
cocktails and
cycling prizes
15
ready to party
prepares to celebrate the Diamond Jubilee
IN BRIEF
Nine-year low in Indian growth
Indias economic growth slumped
to its lowest level in nine years in the
first three months of 2012, data
showed yesterday, marking a dramatic
slide in the fortunes of a country
whose economy was boasting nearly
double-digit growth before the global
recession. GDP grew 5.3 per cent in
the last quarter from a year earlier, a
sharp slowdown from 9.2 per cent
growth in the last quarter of the
previous year, government data
showed.
Output pace slows down in Japan
Japans industrial output rose 0.2
per cent in April, increasing for the sec-
ond straight month, as exports hold up
and government subsidies support
demand for low-emission cars, official
data showed yesterday. The rise was
smaller than a median market forecast
of a 0.5 per cent increase, figures from
the Ministry of Economy, Trade and
Industry revealed. Manufacturers sur-
veyed by the ministry expect output to
fall 3.2 per cent in May and increase 2.4
per cent in June, the data showed.
OECD: Hope lies in new markets
G20 governments should prevent
further deterioration in their collective
trade and investment policy stance and
focus on promoting open markets to
re-boot growth in the world economy,
the OECD urged yesterday. We know
closing markets stifles growth and
makes it harder to tackle unemploy-
ment. Countries must resist the temp-
tation to implement inward-looking
policies, said OECD boss Angel Gurra.
HOUSE prices are stuck at a high level
despite a lack of demand because of a
low rate of building, Nationwide said
yesterday, arguing that allowing
more construction will reduce the
pressure of housing costs on house-
holds.
The building societys data showed
prices rose 0.3 per cent in May, but
dropped 0.7 per cent on the year, with
the average house now costing
166,022.
London remains the least affordable
region with rents taking up 40 per
cent of earnings and average house
prices more than six times earnings.
This provides further evidence that
housing more generally is in short
supply, reinforcing the view that any
efforts to reinvigorate the housing
market should focus on the demand
and the supply side of the market,
said Nationwide chief economist
Robert Gardner.
However, although prices remain
high, low interest rates are increasing
home affordability repayments on a
typical mortgage are now equal to
around 31 per cent of take-home pay,
Home shortage
drives prices up,
says Nationwide
BY TIM WALLACE
the lowest level for a decade.
But despite low interest rates, econo-
mists believe the overall weak eco-
nomic outlook will weigh on prices.
Housing market activity remain
very low compared to long-term
norms, and the fundamentals are cur-
rently problematic overall for the mar-
ket with unemployment high,
earnings growth muted, and the eco-
nomic outlook both difficult and
uncertain, said Howard Archer from
IHS Global Insight.
On top of this, some mortgage rates
have risen recently due to lenders
higher borrowing costs in wholesale
markets.
House prices are stagnant
1952 1962 1972 1982 1992 2002 2012
3,000
4,000
5,000
0
1,000
2,000
6,000
7,000
8,000
9,000
10,000 House
Prices
Retail
Prices
(RPI)
THE ECONOMY will barely grow
this year if the government does
not cut regulation and invest in
infrastructure, the British
Chambers of Commerce (BCC)
warns today.
Growth will come in at just 0.1
per cent this year, the business
group declared, down from the 0.6
per cent it predicted in its previous
quarterly forecast.
Weak domestic and export
demand as well as public sector job
cuts will push unemployment up
to 2.9m in the third quarter of the
year, the BCC believes, while low
Red tape hindering economic
growth, warns business group
BY TIM WALLACE growth will leave the budget
deficit at 98bn for 2012-13, 6bn
above the official forecast from the
OBR.
Without the government
working together with business,
the economy will continue to
bump along the bottom for longer
than wed all like, said BCC boss
John Longworth.
We want to see measures like
the creation of a business bank,
which would provide capital to
new and growing companies, and
real domestic deregulation.
These measures can be achieved
while sticking to the aims of
deficit reduction, he added.
FRIDAY 1 JUNE 2012
16
NEWS
cityam.com
BCC boss John Longworth wants the government to take economic growth seriously
R
E
X
KINGFISHER, Europes biggest home
improvements chain, yesterday
blamed miserable weather in April
and a weakening euro, for a steep fall
in first quarter profits.
We anticipated the first quarter
would be challenging, compared
with last years strong growth which
was boosted by favourable spring
weather and public holidays, chief
executive Ian Cheshire said.
But an extremely wet April this
year in the UK and France com-
pounded the difficulty, adversely
impacting sales of outdoor and sea-
sonal categories.
The company, which owns about
950 stores across eight countries in
Europe and Asia, said overall retail
profits fell 8.6 per cent to 160m on
like-for-like sales down five per cent
to 2.6bn.
Britain & Ireland proved particular-
ly weak, with like-for-like sales at
B&Q tumbling 10.4 per cent in the
three months to 28 April as the poor
weather hit sales of seasonal goods
April showers
dampen profits
for Kingfisher
BY KASMIRA JEFFORD
like barbecues by 30 per cent.
Kingfisher, which also owns
Screwfix in the UK, said a one-off
5m construction cost at B&Q
dragged profits down by 10 per cent
in the quarter.
The DIY groups Castorama and
Brico Depot chains in France per-
formed better with like-for-like sales
up 0.7 per cent but slowing on the
previous quarter.
Shares closed up 1.85 per cent yes-
terday as analysts shrugged off the
weather and remained confident
over the groups long term strategy.
Tate & Lyle finds the right mix
of ingredients as sales surge
STRONG growth of zero-calorie
sweetener Splenda and other
speciality food ingredients helped
boost Tate & Lyles full-year profit
23 per cent to 323m, as the group
benefited from consumers opting
for healthier foods.
The London-based sweeteners
and starches group reopened a
second plant in March in the US to
meet demand for its sucralose
Splenda while high sugar prices
benefited its competing bulk
sweeteners and it gained from
growth in emerging markets.
Chief executive Javed Ahmed has
BY A CITY A.M REPORTER
been shifting the focus of the
group away from being a bulk
commodity player to a speciality
food ingredients business.
He said the group saw steady
growth across a number of its
markets in the year, including Asia
and Latin America. Despite
economic uncertainty and a step
up in investment he said he
expected further growth this year.
We expect to see progress on
profits, and continue to see top line
growth from our speciality food
ingredient this year, he said.
Ahmed saw little sign of
improvement in the US economy
where Tate makes around 70 per
cent of its sales, with
unemployment steady at around
eight per cent.
The group has very little business
in troubled Eurozone nations such
as Greece and Spain.
Overall group sales rose 14 per
cent to 3.1bn with operating
profit up eight per cent at 348m.
Analyst Dirk Van Vlaanderen at
Tate & Lyles house broker Jefferies
said earnings were slightly ahead of
forecasts due to more favourable
financing costs, and expects little
change to current forecasts which
look for a two per cent rise in
earnings to 57.6 pence for the year
to March 2013.
Kingsher PLC
29May30May 31 May 25May28May
285.00
282.50
280.00
277.50
275.00
p
282.00
31May
ANALYST VIEWS
DID THE STATEMENT
DAMPEN YOUR FORECASTS
FOR THE YEAR? Interviews by Kasmira Jefford
Tim Ingram has
joined the board
of RSM Tenon
CITY law firm Taylor Wessing saw
its UK revenues rise more than
seven per cent in 2011-12, helping
the firm lift its UK profits to 31m.
UK turnover at Taylor Wessing
hit 101m, up 10 per cent from the
previous year, and profits per
equity partner also grew up 12
per cent to 601,000.
The firm said its strong
performance was largely down to
its litigation, IP and private wealth
practices.
Taylor Wessing
revenues rise
BY ELIZABETH FOURNIER
PUB group Fuller, Smith and
Turner yesterday posted a five
per cent full year revenue rise to
253m and said that its pre-tax
profits grew three per cent to
30.3m.
The company said like-for-like
sales in accommodation, food
and drinks were up by 7.4, 4.5
and four per cent respectively.
While the new year has seen
the most volatile start, Fullers
expects its fortunes to change
during the Jubilee this weekend.
Fullers faith in
London pride
BY LAUREN DAVIDSON
FRIDAY 1 JUNE 2012
17
NEWS
cityam.com
Ian Cheshire, CEO, said Kingfisher has the key summer season to look forward to
HALFORDS said campers and
cyclists taking a raincheck after
one of the UKs wettest Aprils on
record has taken its toll on recent
trading, as it reported a 27 per cent
fall in full-year profits.
The leisure and car parts retailer
saw its share price slide by 12.65
per cent yesterday after what chief
executive Andrew Wilde described
as a very disappointing start to
the year.
However, he sought to reassure
investors and said that while the
group had not seen the usual sea-
sonal demand for cycling and out-
door leisure products, some of those
sales were deferred rather than can-
celled, and it expected a stronger
BY KASMIRA JEFFORD performance as the year progresses.
Underlying profit for the year
ended March 2012 was 92.2m,
which, while down, was slightly
ahead of already downgraded fore-
casts. Retail sales fell 2.3 per cent to
752.3m.
The 1.4bn a year cycle market is
one of Halfords key targeted
growth areas including fitting serv-
ices and autocentres. It said
relaunched bike ranges helped grow
sales in the division by 9.7 per cent.
This was offset by a 4.5 per cent
decline in like-for-like sales of its car
maintenance products as hard-up
motorists drove fewer miles.
Analysts yesterday cut their full-
year forecasts for the group by five
per cent and now expect profits of
78-80m.
FRENCH drugmaker Sanofi has
received planning permission to
revitalise its once-celebrated East
London manufacturing plant, set
to close in 2013. The site in
Dagenham currently employs 450
staff. The new plans, backed by the
Mayor of Londons office, hope to
create 2,500 new jobs.
The plant opened in 1934 and
developed a national reputation
for pharmaceutical innovation.
The site won the Queens Award for
Industry three times and carries a
Chemical Landmark plaque, one of
only 37 in the UK. Its
breakthroughs include drugs that
saved thousands of lives in World
Sanofis Dagenham plant seeks
to revive its innovation heritage
MARC SIDWELL
War II. However, it ceased research
and development work in 2000.
The new plans are intended to
restore some of Dagenhams
research heritage to life. One of
the regeneration experts working
on the project, Tim Metson of
SOG, says there are thousands of
square feet of specialist
manufacturing and laboratory
facilities on the Dagenham site
that would cost millions of pounds
to recreate at todays prices. He
added Our plan is to offer them
to other scientific businesses
where they can be adapted for a
multitude of R&D projects.
The planning proposal also
includes a dental school, hotel,
supermarket and 54 acre park.
Ex-Collins Stewart chair to lead
board of accountant RSM Tenon
TIM INGRAM, the former chief
executive of Collins Stewart
Hawkpoint, was yesterday
announced as the new chairman
of accountant RSM Tenon.
Ingram will replace outgoing
Adrian Martin, who said last
month he would step down after
just three months in the role.
The appointment follows a
troubled few months for the
firm, which in January ousted its
former chief executive and
chairman, and told investors it
would have to restate its accounts
for the previous year.
BY ELIZABETH FOURNIER
It also brought in turnaround
specialists to negotiate with its
lenders and plan cost cutting to
help it return to profitability.
Yesterday, chief executive Chris
Merry told investors: We
continue to make
good progress with
our cost reduction
programme and the
development of our
strategic plan.
Ingram was
chairman of Collins
Stewart Hawpoint
from 2010 until it was
sold to Canaccord
Genuity in March.
Prior to that he was the chief
executive of Caledonia
Investments, and chairman of First
National Bank from 1996 to 2002.
Tim has very relevant
experience and a strong track
record of delivering shareholder
value.
I am confident he is the right
person to take the chair at this
important stage in the
development of the business,
Martin said yesterday.
Halfords knocked as cyclists
and campers take a raincheck
As expected, Kingshers prots were down, given the weather and the
tough comparables. We remain buyers because the long-term opportunity
is not affected and we see growth from the Creating The Leader programme.

PHILIP DORGAN PANMURE GORDON


Kingsher has held up the weather as a reason for this damp and dreary
update...the fact that the share price remained virtually static in early trade
is a testament to investors condence in the stock, despite poor numbers.

RICHARD HUNTER HARGREAVES LANSDOWNE


On an underlying basis we still believe that the business is trading well,
and the newsow should now get notably better through the rest of the
year. We maintain our Buy recommendation and 380p target price.

SIMON IRWIN LIBERUM CAPITAL


CHIME Communications yesterday
announced a management buyout of
its Bell Pottinger businesses for
19.6m in cash and shares.
Chairman Lord Bell and deputy
chairman Piers Pottinger will pay
14.9m in cash and step down from
Chime to run the new company, BPP
Communications.
Chime will hold a 25 per cent
stake in BPP and a seat on its board.
The deal needs majority investor
approval but Chimes biggest
shareholder WPP, which holds a 20
per cent stake, is unimpressed.
WPP chairman Sir Martin Sorrell
INTEL will next week enter the
smartphone market with the launch
of the San Diego, available
exclusively on Orange from 6 June.
The Android smartphone is the
first to feature an Intel chip as the
computer processing giant attempts
to invade ARMs territory.
The handset, available for 200 on
pay as you go, boasts high-definition
video on its four-inch screen and an
eight mega-pixel camera.
Vodafone also unveiled a new
smartphone yesterday, aimed at the
other end of the market.
Dubbed the Smart II, the 70
phone features a touchscreen
display, high-speed 3G and wifi
connectivity, GPS and a 3.2
megapixel camera.
Vodafone said the
Smart II will introduce
non smartphone
consumers to a new
world of content and
services.
Orange unveils
first Intel-chip
smartphone
BY LAUREN DAVIDSON
G
E
T
T
Y
ONLINE payments pioneer PayPal yes-
terday launched an app that takes in-
store mobile payment to the next
level.
Valid in 230 stores across the UK,
including high street favourites
Coast, Oasis, Warehouse and Karen
Millen, the app generates a unique
bar code that charges your PayPal
account when it is scanned by a
cashier.
PayPal inStore claims to work even
where there is no mobile network or
wifi coverage.
The step into mobile payments will
not come as a surprise. After PayPals
former boss Scott Thompson moved
to Yahoo earlier this year, the eBay
subsidiary appointed David Marcus
its new chief executive.
PayPal unveils
app to pay via
phone in shops
BY LAUREN DAVIDSON
Marcus founded Zong the mobile
payments company eBay acquired last
summer when Zong became PayPals
vice president of mobile.
PayPal inStore is the latest in a string
of offerings in the mobile payments
market and the company claims it is
better than the rival wave and pay
service currently offered on certain
credit cards and select Orange hand-
sets, which only process transactions
up to 20.
But critics have panned the app for
being more complicated and time
consuming than paying via cash or
chip and pin.
Cameron McLean, managing direc-
tor of PayPal UK, said the app marks
the start of a quiet revolution in the
way we shop on the high street. Weve
created a simple, secure way to use a
mobile phone to pay in your favourite
stores.
Chime sells off Bell
Pottinger business
BY LAUREN DAVIDSON
Intels first smartphone,
the San Diego, will be
available next week.
SHEFFIELD firm WANdisco
will begin trading on the
AIM market this morning,
in a float that will raise
around 15m.
The firm provides
collaboration tools to the
software industry and is the
first IPO in London of a
Yorkshire-based firm since
2010
City A.M. understands
that the placing was more
than three times
oversubscribed.
Panmure Gordons Fred
Walsh and Giles Stewart
acted as advisers.
WANdisco set
for 15m float
BY JAMES WATERSON
FRIDAY 1 JUNE 2012
18
NEWS
cityam.com
GLOBAL BUSINESSES
RECRUITING LONDONS
BEST PROFESSIONALS
YOUR FUTURE IS OUR BUSINESS
CITYAMCAREERS.com
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PayPal inStore
Currently valid in Oasis, Coast, Karen
Millen and Warehouse, your smartphone
app will generate a unique barcode to be
scanned by the shop assistant.
Orange Quick Tap
Tap your Samsung Tocco or Samsung
Wave phone on a contactless payment
terminal in shops to spend up to 15.
O2 Wallet
This service does not yet support in-store
payment, but allows the customer to
"text" up to 500 a day to other users,
among other services.
Barclaycard PayTag
Stick the tag one third the size of a
normal credit card on the back of your
handset and you're ready to tap and go
for payments up to 20.
HSBC Merchant Services
By the end of this year, customers with
MasterCard Paypass or Visa PayWave cards will be
able to spend up to 20 via contactless payment
in all 11,000 Post Ofce branches in the UK.
Across the pond
Customers in the US can pay in store on their mobile phones using Google Wallet, or transfer money between
handheld devices by swiping a credit card through a Square reader.
MOBILE PAYMENTS
Quick Tap
wallet
Merchant Services
Lord Bell will run
the new firm, BPP
Communications
has criticised the companys 19.6m
valuation, which is an eight-fold
increase on the Bell Pottinger
businesses 2011 pre-tax profits.
Sir Martin questioned why the
company was not valued
in terms of revenues,
and said it sets a
terrible precedent for
Chime to keep a 25 per
cent stake.
Chimes shares
climbed 8.7 per
cent to 163p.
LONDON 2012 IMAGE OF THE WEEK
SIR Chris Bonington, the Everest mountaineer, this week carried the
Olympic Torch to the summit of Mount Snowdon. Visibly emotional,
he started his climbing career on the mountain in 1951. The Torch is
on day 14 of its 70-day trip across the UK, and today is travelling
from Bolton to Liverpool. It will be carried by 8,000 people in total.
Between now and the start of the Olympics, City A.M.
is publishing its Olympic Image of the Week. If you
have a shot you think our readers will like, please
email pictures@cityam.com with IOW2012 in the
subject line. Full details: cityam.com/london-2012
NOTICE IS HEREBY GIVEN THAT The Japanese
Canteen Limited of 30-33 Minories London EC3N 1DD has
applied to the City of London Corporation on 28 May 2012 to
grant a premises licence to use the premises Burro Burrito at
Unit 2 Ground floor 30-33 Minories London EC3N 1DD for the
provision of the sale by retail of alcohol for consumption on
the premises. The application if granted, will allow such
licensable activities to take place at the following times: On
Mondays to Fridays 11.30 am to 11.00 pm.
The record of this application is held by the Licensing
Authority and can be viewed on the website
www.cityoflondon.gov.uk or inspected at the offices of the City
of London Corporation, Trading Standards
(Licensing), Walbrook Wharf, 78-83 Upper Thames Street,
London, EC4R 3TD during normal office hours (Ring in
advance for appointment)
Any person wishing to submit representations to the
application must give notice in writing to the Licensing
Authority at the address shown above, giving in detail the
grounds for objection by 26 June 2012
Representations must be received by the Licensing
Authority by the date given above. The Licensing Authority will
have regard to any representations made when
considering this application.
It is an offence under section 158 of the Licensing Act 2003 for
anyone to recklessly or knowingly make a false statement in
connection with a licensing application. The maximum fine on
conviction is 5,000.
Licensing Act 2003 Notice of AppIication for grant of
Premises Licence
IN BRIEF
BHP wins approval for 6bn deal
BHP Billiton yesterday cleared the
last external hurdle for a planned
$10bn (6.46bn) expansion of its Port
Hedland harbour in Western Australia
that would help the worlds biggest
miner double output of iron ore. The
expansion is one of the top three
projects BHP has outlined in an $80bn
capital spending plan.
Tax deals may cost Swiss 160bn
Swiss banks could see assets from
western European clients fall 28 per
cent because of deals to tax
undeclared accounts, potentially
forcing the industry to cut up to
15,500 jobs to stay profitable, the
Boston Consulting Group (BCG) said
yesterday. In its annual global wealth
report BCG said that western
European assets booked in
Switzerland could fall SwFr248bn
(165.8bn) to SwFr623bn by 2014.
S&P shifts insurers ratings rule
Standard & Poors will change the
way it assigns global ratings to
insurers, in part to increase the
consideration of country risk in the
way a company is evaluated, the
credit ratings agency said yesterday.
The changes will apply to all insurance
lines except bond and mortgage.
In a statement, S&P analysts said the
significant majority of company
ratings would be either unchanged or
moved by at most one notch as a
result of the new criteria.
FALKLANDS oil explorer Rockhopper
yesterday said it had reduced its
annual pre-tax losses by $33m.
(21.4m).
The drop in the year to 31 March
to $53m came as exploration
expenses went down.
Meanwhile the company said it
was making progress on its Sea Lion
field. Chairman Pierre Jumgels
said: Recent 3D seismic and
further interpretation of the older
3D indicates that the exploration
potential of the basin is significant
and I have no doubts that more
discoveries will be made. The
estimate for the Sea Lion project is
1.3bn barrels of oil. The company
said it made four finds in the year.
Rockhopper
narrows its
losses to $53m
BY JOHN DUNNE
G
E
T
T
Y
GLAXOSMITHKLINE (GSK) plans to
launch a campaign to replace the
entire board of Human Genome
Sciences with its own nominees,
stepping up its 1.67bn hostile bid
for the US biotech company, sources
said yesterday.
The British company has started
reaching out to executives in the
pharmaceutical industry as well as
finance and governance experts who
could be nominated as independent
directors on Human Genomes 12-
member board.
GSK now intends to seek consent
from Human Genome shareholders
to replace the entire board and the
consent solicitation process could
come in the next few weeks, the
Reuters source said. The company is
also expected to extend its tender
offer for Human Genome beyond 7
June. The move, which GSK had
flagged as a possibility in a regulato-
ry filing earlier this month, could
GSK in plan to
axe all Human
Genome board
BY HARRY BANKS
send yet another signal to potential
bidders of the seriousness of GSKs
desire to buy Human Genome. This
might make it harder for the US
biotech company to find a white
knight willing to take on the UK phar-
ma giant.
The two companies together sell
Benlysta, a new drug for the autoim-
mune condition known as lupus.
They also collaborate on two other
experimental drugs for diabetes and
heart disease which could bring the
pair significant profits.
BAE plans 600 job cuts across
the UK as weaker demand bites
DEFENCE contractor BAE Systems
is planning to axe 620 jobs and shut
down its Newcastle factory, it said
yesterday.
BAE is locked in talks with
unions over the Newcastle closure,
which would account for half the
jobs to be culled.
The company said weak demand
for the Terrier armoured vehicle,
which is made there, was to blame
for the closure threat.
BY JOHN DUNNE
Under the companys plans the
factory will close down at the end of
next year when the Terrier contract
ends.
BAE said there were no other
armoured vehicle contracts in the
pipeline, leaving closure the only
realistic option.
Up to 280 jobs are also under
threat at the companys three sites
in Radway Green, near Crewe.
Meanwhile 10 jobs could go at the
companys headquarters in
Farnborough, Hampshire.
Managing director Charlie
Blakemore said: We need to adapt
to very challenging market
conditions and further reduce our
overheads to drive better value for
our customers and increase our
competitiveness in the export
market.
I know that this is difficult news
for employees and we will do all we
can to help them through this
difficult period and mitigate the
proposed job losses wherever
possible.
GlaxoSmithKline PLC
29May 30May 31 May 25May 28May
1,450
1,440
1,430
1,420
1,410
p
1,438.00
31May
INDIAS Kingfisher Airlines posted
its worst-ever quarterly loss
yesterday, as huge cuts in the
number of flights, a rise in fuel
costs and competition took their
toll.
It is now the smallest carrier in
India by market share and shares
in the airline have plummeted
more than 80 per cent since the
beginning of 2011.
The high-profile airline, which is
owned by flamboyant liquor baron
Kingfisher crashes to its worst
quarterly loss as fuel costs rise
BY JOHN DUNNE
Vijay Mallya, lost 11.5bn rupees
(132m) in the quarter to the end
of March, compared with a loss of
3.6bn rupees a year earlier.
The carrier blamed losses on
high fuel prices, a weak rupee and
an unprecedented, tough
operating environment, but said
it would return to normal services
within 12 months.
The company has a focused
fleet re-induction plan and hopes
to be back to full-scale operations
in the next 12 months, it added
in its statement.
HEALTH technology group Halma
yesterday announced a $50m
(32m) deal to buy medical devices
firm SunTech.
The companys main product is
a blood pressure testing device.
SunTech, based in North
Carolina, reported revenue in the
year to 31 December was $23m
with operating profit $5.4m.
Halma shares rose two per cent
in London after yesterdays
announcement.
Halma chief executive Andrew
Williams said: The acquisition of
Halma buys SunTech in deal to
extend medical device range
BY JOHN DUNNE
SunTech continues our strategy of
building strong positions in
markets with resilient long-term
growth drivers.
This acquisition allows the two
companies to work together to
further develop their markets and
products.
SunTechs existing management
team will remain in place and will
continue to operate the business.
The acquisition, which is expected
to be immediately earnings
enhancing, has been funded from
Halmas cash and debt facilities.
SunTech will be part of Halmas
health and analysis business.
FRIDAY 1 JUNE 2012
19
NEWS
cityam.com
Shares in Kingfisher Airlines, owned by liquor baron Vijay Mallya (above), have fallen 80pc
TNK-BP co-owner invites
in bidders for the business
TNK-BP, British oil major BPs
Russian joint venture that is
embroiled in a shareholder
dispute, may get a third
investor, co-owner and
former chief executive
Mikhail Fridman.
Fridman, one of the four
Soviet-born tycoons who
share control of the 50-50
venture via the AAR
consortium, quit as chief
executive on Monday,
deepening a leadership crisis
that has deprived the
company of a functioning
board.
Everything is possible and
realistic. We are open to
proposals, Fridman told the
Kommersant business daily
in an interview yesterday.
There are no concrete offers,
but it (TNK-BP) may be
interesting to many.
Fridman declined to
comment to Kommersant
what he considers to be fair
value for TNK-BP, which is
worth $38.4bn (24.7bn)
based on the current market
price of its main listed unit,
TNK-BP Holding. Bank of
America Merrill Lynch, in a
note dated 29 May, gave a
$50bn value to TNK-BP
International, a holding
company that controls TNK-
BP Holding and further
assets including Slavneft and
some Ukrainian assets.
AAR might ask for a
valuation of up to $55-$60bn
on TNK-BP Holding alone,
taking the transaction (to
buy out AAR) to $30-$35bn
analysts led by Karen
Kostanian wrote in the note.
Fridman dismissed
suggestions that his
resignation was related to
former deputy Prime
Minister Igor Sechins
appointment to run state oil
firm Rosneft following
Vladimir Putins return to
the presidency.
Under Sechin, Rosneft is
expected to become a
platform to consolidate
Russian industry assets.
BY CITY A.M. REPORTER
FRIDAY 1 JUNE 2012
20
LONDONREPORT
Brooks Macdonald Funds
The fund management firm has
appointed Christine Tacon as
chairman of UK Farming, its new
asset-backed UK farming
business. Tacon was managing
director of Co-operative Farms
from 2000 to December 2011,
and an executive board member
of Co-operative Food Retail. UK
Farming targets investment in
existing arable farmland.
Kleinwort Benson
Valentina Tacchino has been appointed head of private
wealth management international at the private bank. She
will arrive in September 2012. Tacchino joins from Clariden
Leu, where she was head of its UK resident non-domiciled
team. She has also worked at Schroders Private Banking,
where she rose to become director in its international team.
BNP Paribas Real Estate
Paul Abrey and James Russell have been appointed to the
UK investment team of the banks property division. Abrey
joins as executive director from the commercial division of
Chesterton Humberts. He previously spent 20 years at DTZ.
Russell joins as director from Accrue Capital. He was
previously a member of Jones Lang LaSalles European
capital markets team.
Simmons & Simmons
The law firm has appointed two litigation partners. Tim
Boyce and Ed Crosse, both partners at Osborne Clark, will
join Simmons & Simmons in the autumn. Boyce focuses on
regulatory investigations, commercial lending disputes and
fraud claims. Crosses focus is on handling financial and
regulatory disputes for wholesale investment banks.
Towry
The wealth advice business has made two senior
appointments to its advice policy team. Kate Turner will
head up the team. She joins from Coutts, where she spent
14 years in various roles, including head of private banking.
John Richardson, currently head of advice policy at Towry,
will become head of retirement planning.
Tower Resources
The Aim-listed exploration company has appointed Graeme
Thompson as chief executive. Thompson is co-founder of
Sterling Energy, the upstream oil and gas firm, and spent
nine years as its financial director, company secretary and
ultimately its chief executive. He also previously served as
finance director and company secretary at Dragon Oil.
Barclays
Barclays Bank has appointed Rickie Chan as market head,
Hong. He will join on 16 August and report to the banks
head of wealth management, north Asia. Chan joins from
Goldman Sachs, where he was most recently executive
director, managing Hong Kong ultra high net worth clients.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
US stocks fall
as investors
fret over debt
U
S stocks fell modestly yesterday
to close out the worst month
since September as investor
sentiment sank on Europes
deepening credit problems.
The broad S&P 500 index fell 6.3 per
cent in May, its largest percentage drop
since September. The Dows 6.2 per
cent drop and Nasdaqs 7.2 per cent
loss are their largest monthly declines
in two years.
Spain was at the centre of the latest
European developments as markets
judged Madrids government would
sooner or later have to ask for outside
help for its banks. A report, later
denied, of possible plans to assist Spain
with its troubled banks helped Wall
Street nearly erase losses of 1 per cent
in the afternoon.
Market participants cited month-end
rebalancing as also supporting stocks
due to money managers buying more
shares to make up for the declining
value of equities during May.
However, the continuing worry over
Europe and a batch of disappointing
US economic figures weighed on the
market. Jobless claims rose for the sev-
enth week in eight, putting investors
on edge before Fridays US monthly
payrolls report.
Europe is the main issue, no ques-
tion about it, but you have a support-
ing cast from the US data, said Paul
Zemsky, head of asset allocation at ING
Investment Management in New York.
The Dow Jones industrial average
dropped 26.41 points, or 0.21 per cent,
to 12,393.45. The S&P 500 Index fell
2.99 points, or 0.23 per cent, to
1,310.33. The Nasdaq Composite lost
10.02 points, or 0.35 per cent, to
2,827.34.
Shares of US Steel dropped 5.1 per
cent to $20.30 and Cliffs Natural
Resources fell 6.1 per cent to $47.78 as
energy and materials company shares
led declines on the S&P 500.
Commodity prices fell with the euro
at 23-month lows against the US dol-
lar. The greenback weakened sharply
versus the yen, a sign that investors
were moving money into perceived
safe havens.
Private payroll growth accelerated
only slightly last month and claims for
jobless benefits rose last week, suggest-
ing the labor market recovery was
stalling.
A disappointing number in todays
report would further dampen market
sentiment, but it could also bring back
talk of further stimulus by the US
Federal Reserve.
Shares of TJX Cos rose 2.7 per cent to
$42.46 after the low-price retailer was
among those to report sales at stores
open at least a year that beat Wall
Street forecasts.
Ciena climbed 14.1 per cent to $13.55
after the network equipment company
posted a surprise second-quarter
adjusted profit.
Joy Global slumped 5.1 per cent to
$55.86 after the mining equipment
maker cut forecasts.
Facebook shares hit a fresh intraday
low of $26.83 before bouncing back to
close up 5 per cent at $29.60.
B
RITAINS top share index suffered
its worst month in more than three
years in May after data suggesting
the US economy is struggling
triggered a late sell-off yesterday, and
may be vulnerable to further declines as
Eurozone worries persist.
The FTSE 100 index gave up most of the
strong gains it had recorded earlier in the
day in late trading as a raft of US numbers
raised concerns the pace of economic
recovery in the worlds largest economy
was faltering.
The index was negative just before the
close, but managed to end 9.67 points, or
0.18 per cent, higher at 5,306.95 points. It
finished the month 7.5 per cent weaker, a
third straight month of losses and the
worst performance since February 2009.
US figures indicate that the ISM num-
bers tomorrow will be quite poor and the
nonfarm payroll data is going to be weak,
indicating in many ways that the second-
quarter US growth rate will be very lacklus-
tre, said Gerard Lane, equity strategist at
Shore Capital.
There is some realisation that high oil
prices in the first quarter caused the econ-
omy to slow. We have also got a deepening
crisis in Europe. Until we see some policy
resolution from the Europeans, I cant see
the market making a sustained progress.
The index turned after data painted a
gloomy picture. The pace of business activ-
ity in the US Midwest slowed in May, ADP
private payroll growth rose only slightly
last month, jobless benefit claims rose last
week and economic growth in the first
quarter came in lower than initially esti-
mated.
US Chicago PMI was rumoured to be a
bad number and as soon as that was con-
firmed, we started to see investors immedi-
ately scale down their short term trading
positions. ADP Employment numbers
missed forecasts too, Citi Index strategist
Joshua Raymond said.
According to earlier surveys, todays
closely watched employment report for
May is expected to show that nonfarm pay-
rolls increased 150,000, up from a paltry
115,000 in April. However, investors were
bracing for some disappointment after yes-
terdays private payroll numbers, analysts
said.
Sectors linked to growth were among the
worst decliners, with the UK mining index
falling 0.9 per cent.
Lane said UK consumer discretionary
companies such as Next and Mitchells &
Butlers were doing relatively well and
were expected to continue outperforming
in an otherwise poor equity market.
Utilities in general are also a good place
to go as they offer the right type of expo-
sure when earnings risk elsewhere is ris-
ing.
Short-term players were more active in
the market and were betting on volatility
in cyclical stocks, traders said, adding the
strategy was to quickly move in and out of
the market to take advantage of sudden
price moves based on news headlines.
That strategy was reflected by Anglo-
Dutch IT services company Logica, which
surged 69 per cent after the company
agreed to be bought by Canadas CGI
Group for 1.7bn.
Harris said a popular stock was Diageo,
which had got both cyclical and defensive
qualities. Over the past months, it has
shown a strong uptrend and had not suf-
fered too much even during a broader mar-
ket correction the past weeks.
Diageo shares outperformed and ended
1.3 per cent higher.
Among individual movers,
InterContinental Hotels Group rose 5.6
per cent after US activist investor Nelson
Peltz said his Trian Fund Management had
picked up a stake of 4.27 per cent in the
worlds biggest hotelier.
FTSE suffers worst month in three
years on credit woes and US data
BESTof theBROKERS
Premier Oil PLC
28May 29May 30May 31May 25May
p 355
350
345
340
335
330
340.50
31 May
PREMIER OIL
UBS has upgraded the independent oil company from hold to buy but
has dropped its 12-month target-price from 430p to 410p. The broker
believes that Premier has been hit hard in the recent sell-off,
underperforming the exploration and production sector by 28 per cent in
the last three months. However, UBS thinks its two key projects have a
favourable chance of starting on time, which will help to remove the
share price overhang.
FTSE
5,420
5,400
5,380
5,360
5,320
5,300
5,280
5,340
25May 28May 29May 30May 31May
5,306.95
31 May
DASHBOARD CITY
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
NEW YORK
REPORT
in association with
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
Berkeley Group Holdings PLC
28May 29May 30May 31May 25May
p 1,275
1,250
1,225
1,200
1,248.00
31 May
BERKELEY GROUP
Deutsche Bank has upgraded the housebuilder from hold to buy,
increasing its target price by 1.67 to 15.61. The broker believes that
Berkeley will reap rewards from its land acquisition strategy as volumes
pick up, driven by student accommodation and increases in London
selling prices. Deutsche Bank has raised its 2014 pre-tax profit forecasts
by 20 per cent and is now well above consensus estimates. It says that any
dip resulting from an investor sell-off should be used as an entry point for
the shares.
ITV PLC
28May 29May 30May 31May 25May
p 82
80
78
76
74
72
72.90
31 May
ITV
Liberum rates the TV group a buy with a target price of 77p. It is
expecting that July and August will be difficult months as advertisers
scrap planned campaigns across the sector. But Liberum believes ITV can
keep its head above the rest of the market, which it reckons will lose 10
per cent of advertising revenue in July. The broker still likes ITV despite
the short term volatility, because of its longer-term fundamentals, the
restructuring story and the possibility of cash returns that its net cash
position allows.
S
OMETHING important
happened in Spain this week,
and not just the continuing
revelations of the depths of its
economic crisis. Volvo
announced that on a motorway just
outside Barcelona a convoy of four
driverless cars drove 123 miles on a
public road, among other road
users, perfectly safely.
The vehicles travelled at 53 miles
an hour, demonstrating a
technology that could be in
commercial use in less than a
decade. This first public test was a
collaboration between Volvo and
British technology firm Ricardo UK,
with funding from the European
Commission, not always an obvious
bastion of innovation but here
T
HE Queen famously asked a
group of economists, at the
height of the 2008 financial
crisis, Why did nobody see it
coming?
Of course, most mainstream econo-
mists didnt predict it. However great
their expertise, orthodoxies prevailed.
And the same is true of pundits in
other areas.
Take the monarchy itself: fifteen
years ago it appeared dead in the
water. And yet, here we are, on the eve
of one of the biggest public celebra-
tions Britain has seen in decades.
The 10,000 Diamond Jubilee street
parties across the country represent
the tip of the iceberg one estimate
put the number of celebrations, in all
their forms, at three times that
amount. And one recent poll showed
that support for the monarchy was
standing at a record 80 per cent, with
the woman at the centre of the institu-
tion now virtually beyond criticism.
Why is the Diamond Jubilee proving
to be such a big deal? The answer is
simple, and its not just about a couple
of extra days off.
cityam.com/forum
A recent survey on
patriotism found that
79 per cent were proud
to be British citizens
In association with
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

22
FRIDAY 1 JUNE 2012
PETER WHITTLE
The Jubilee stands as a landmark
to the power of the national idea
There is a sense that this is an
extraordinary landmark in Britains
story, and that it is completely appro-
priate to mark it as such. For, unlike
the Olympics, the Jubilee is a com-
pletely and organically British event. It
couldnt and wouldnt happen any-
where else but here.
Its perfectly possible to be proud of
British history and not be a staunch
monarchist. This country has a long
and illustrious radical tradition, and
was the first to challenge and subdue
the absolute power of the monarch (as
well as cutting off his head.)
But despite this or perhaps,
because of it the monarchy has man-
aged to flourish in its position as the
most potent symbol of the nation.
And, with the exception of some great
sporting events, no other institution
in the modern era has its unifying
power, its ability to bring together all
parts of society in the way in which we
will see this weekend.
That such a desire to celebrate some-
thing which is so uniquely of us exists
at all might come as a surprise to
many. For, in the years since the
Queens accession in 1952, Britain and
Britishness has endured a massive cul-
tural onslaught.
A counter-culture, antipathetic to
the idea of nation and national pride,
has exerted a far-reaching impact on
national life. Partly as a consequence
of this, but also because of liberal guilt
on the part of Britains cultural estab-
lishment, the educational system vir-
tually ceased teaching the national
story in any meaningful sense.
British identity had been dissected
and deconstructed, British culture
was mocked and ridiculed.
And in addition, the country has
found itself trapped within a pincer
movement, between those who want
it to break up from the inside, and
those who want it to be submerged
into something bigger on the outside.
Yet, despite all this, pride in Britain,
as expressed by its people, has shown a
remarkable capacity for survival.
Battered from seemingly all sides, it
has had every reason to keel over and
die. But it remains, a testament to the
ability of basic underlying values to
withstand both the vagaries of social
fashion and outright political attack.
A recent survey on patriotism and
national pride by the think tank
Demos found that 79 per cent of
those asked characterised themselves
as proud to be British citizens. In fact,
such levels of pride were the highest
in any European country (bar Latvia).
This gives the lie to the notion that
people dont care, or are more likely to
be ashamed or apologetic about being
British. In the 1940s, George Orwell
remarked that this countrys intelli-
gentsia was unique in its distaste for
its own nationality, and that remains
true today. They would rather steal
from a poor box, he wrote, than
stand for God Save the King.
The elites and the country are miles
apart. That figure of 79 per cent is
hugely heartening. It shows that,
whatever attacks it might have had to
endure, a sense of Britain, and a pride
in it, still runs deep.
The Jubilee will give us a great illus-
tration of this. The street parties, the
get-togethers in pubs and parks
these are celebrations that come from
the grassroots. Metropolitan diffi-
dence be damned being part of
something bigger than yourself can be
one of the most uplifting feelings of
all. Its time to celebrate an event
which will be in the national memory
for decades to come.
Peter Whittle is author of Being British
Whats Wrong With It? (Biteback
Publishing, 12.99).
clearly on the right road. Linda
Wahlstrom of Volvo said people
think that autonomous driving is
science fiction, but the fact is that
the technology is already here.
I remember when sat-navs
seemed almost miraculous, but the
possibilities that driverless cars
open up are far larger. At City A.M.s
investment conference last week,
Tim Guinness of Guinness Asset
Management mentioned it as one
of his top disruptive technologies
to watch in the near future.
Driverless cars have the potential
to save thousands of lives every
year in the UK alone, not to
mention bringing greater ease of
transport and many environmental
gains. But perhaps their most
immediate benefit, even as the
economic news turns darker by the
day, is to remind us of how exciting
our future could still be.
Sometimes, when all the
technological advances seem to be
about marginal improvements in
our mobile phones, it can seem like
there is nothing left to invent.
Driverless cars show us a future
that is still rich with possibility.
They are just one example of the
better world we still need to build
for ourselves, and that is hurrying
towards us if only we can hold our
nerve. Last week, SpaceXs Dragon
cargo ship became the first ever
private space vehicle to dock with
the International Space Station,
another milestone that promises
more wonders to come.
Thanks to Ricardo UK, Britain is
part of the driverless car
revolution, and though we dont
always notice it, we are part of the
coming age of private space
enterprise as well. An Institute of
Directors report published this
month finds that our space sector
employs 25,000 people, and is on
course to employ 100,000 by 2020.
But it also argues that, to reach its
full potential, Britain needs to
bring its rulebook into the twenty-
first century and then commit to a
really breathtaking infrastructure
project: a UK spaceport.
A future of wonders is not
guaranteed. There are always
people unwilling to look up to the
horizon, eager to handicap those
who run ahead too fast with the
weight of unnecessary rules. That
lack of imagination threatens our
hopes far more than the current
economic malaise. If we lose our
sense of ambition for the future, it
may never happen.
Marc Sidwell is City A.M.s business
features editor.
THE LONG
VIEW
MARC SIDWELL
Driverless cars show the journey of discovery is a long and winding road
23
Mobile students
[Re: Are student visa curbs damaging
Britain?, yesterday]
I wish to express my disagreement with Priti
Patel on this issue. International students,
and the money they bring, are one of the
UKs most lucrative exports. The majority of
students who come to the UK leave
afterwards and its a mistake to compare
current student immigrants with the earlier
rush last century. Todays generation, by
and large, comes from settled families, with
stable incomes in their home countries.
They have no need to come to the UK
Britain is no saviour for them. They are more
than happy to study in another, competitor
country if Britain turns the taps off this
important industry.
KrishnanUnni Madathil
Business attitude
[Re: State and private school kids face gap
in enterprise skills, yesterday]
While I agree with the key message, there is
one aspect that needs further comment.
Employability skills are critical to bridge the
gap between pupils leaving education and
successfully landing a role, irrespective of
where you are educated. The gap could be
addressed by creating a business readiness
programme, concentrating on aptitude and
attitude other key business skills can be
learned. A joint venture between education
and business organisations could create
more intensive and adaptable employability
skills sessions, focusing on what businesses
need, and therefore generating job creation
onshore, rather than driving jobs offshore.
GrahamSmith, director of Certeco
A
NYONE struggling to
understand what former
Spanish Prime Minister
Felipe Gonzalez meant
when he said his country
was facing total emergency
should take a drive through the
suburbs of any medium-sized
Spanish town. Lines of empty and
half-built houses show exactly why
the countrys banks are on their
knees and why, sooner or later,
Madrid will have to go cap-in-hand
to Brussels.
Bankia, Spains number three
lender, has admitted it will need
23.5bn (18.8bn) to recapitalise, and
the sectors shortfall will probably be
well over 100bn over the next three
years. After the European Central
Banks (ECB) refusal to refinance
Bankia, Madrids time is running
short. The countrys finances are
falling into a vortex of slumping tax
returns and spiralling debt service
costs up 32 per cent in the year to
date and it is effectively frozen out
of debt markets, with 10-year bond
yields approaching 7 per cent. The
rising debt burden on Spains shrink-
ing economic base is creating a feed-
back loop that, once trapped within,
can be almost impossible to escape.
Savers are getting nervous, with-
drawing 31.5bn from Spanish bank
accounts in April. Given the growing
risks to financial stability, Spain may
hold out hope of the ECB blinking
first and riding to Spains, and the
banks, rescue. That is unlikely. The
central bank is already uncomfort-
able with buying more sovereign
debt and effectively providing fiscal
aid through the back door. Frankfurt
may conclude that, if it sits on the
sidelines and refuses to buy Spanish
bonds in any great quantity, it can
force Spain into asking for a bailout
from European peers and the
International Monetary Fund. The
TOP TWEETS
Greece, Spain, Italy... how is it that some still
dont realise the euro was an awful idea?
@mZimm22
Why do people seek election and then call
for everything to be handed to independent
experts? Elected accountability is better.
@Conor_BurnsMP
Theres nothing wrong in stopping foreign
students bringing dependents and applying
for jobs when finished. Why could they ever?
@stephanie2972
Just to recap now that the charity tax U-
turn has been announced, is there any of
Budget 2012 left?
@tobyperkinsmp
Are NHS GPs right to plan strike action over
proposed reform to their pension schemes?
YES
It is with great reluctance that doctors have decided to take
industrial action for the first time in 40 years. The strong yes
vote occurred because the government decided to tear up a fair
and affordable deal agreed just four years ago. It has been
replaced with a scheme that will see doctors work to at least 68
and pay more up to twice as much for the same pensions as
senior civil servants on a similar salary. This is despite the fact that
the NHS pension scheme is not a drain on taxpayers and actually
delivers a surplus of 2bn each year. Our overriding priority for the
industrial action is patient safety. I totally understand that patients
may be worried, but doctors will be in their hospitals and surgeries
as usual. You and your family will get care if you need it. Doctors
are not asking for special treatment just for fair treatment.
Dr Hamish Meldrum is chair of the British Medical Association
Council.
Hamish Meldrum
NO
Matthew Elliott
Doctors receive generous pensions on top of substantial pay for the
challenging and important work they do. But, with everyone living
longer, GPs just like other public sector workers, need to start
contributing a little more towards the cost of their retirement. By
going on strike, doctors seem to expect taxpayers to continue to
prop up unsustainable deals. According to Hargreaves Lansdown,
anyone keen to have a similar deal to that which GPs are trying to
protect (about 68k a year when they retire, according to Andrew
Lansley) would have to put aside about 1,870 a month. With many
people struggling to save for their own retirement, it is unfair to
expect them to pay so much towards the cost of these generous
deals for GPs. This strike is a hugely disproportionate reaction to
moderate and necessary reforms needed to make those pensions
more affordable for the taxpayers who currently pick up the bill.
Matthew Elliott is chief executive of the TaxPayers Alliance.
RAPIDresponses
Spain cant save
all of its banks
without sinking
European Stability Mechanism (ESM)
would probably need to dish out
around 350bn over the next two
years for Spain to recapitalise its
banks and roll over debt obligations.
For now, Spain is likely to baulk at
such a loss of sovereignty, even if the
pill is sugared with a softer line from
Brussels on economic reform. The
European Commission lent a hand
yesterday, giving Spain an extra year
to slash its deficit. That is unlikely to
suffice, given such intense pressure
from markets, and Madrid is still
likely to have to go to the ESM within
weeks of the bailout fund coming on
stream in July.
At this point, having recognised its
perilous plight, Spain may then see
the folly in trying to support all its
banks. As Ireland showed, it could
lead to a massive over-extension of
Spains finances and plunge it into a
vicious cycle of austerity. That would
further ramp up Spains horrific lev-
els of unemployment, increase insol-
vency and hit the banks with more
bad loans. At that point wed not
only have to worry about 184bn of
problematic loans to Spains
builders, but the countrys entire
1.7 trillion domestic loan book.
Madrid should allow for an orderly
unwinding of its weakest banks and
leave bondholders to assume losses
and focus its efforts instead on recap-
italising its strongest banks. If it
ducks them, the pain of austerity
will have been for very little gain.
Harvinder Sian is co-head of research at
RBS.
FRIDAY 1 JUNE 2012
HARVINDER SIAN
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Email theforum@cityam.com or comment at cityam.com/forum
London is culturally overwhelming any weekend of the
year. For the Queens Diamond Jubilee, however, the
city has truly pulled out the stops. Its a four day
bonanza that combines state pomp with cultural
entertainment and lots of partying in the way that
only the British can pull off. Whether you fancy joining
in a street party, getting in pole position for the
Queens Thames pageant or seeing an exhibition,
theres something here for you. Lots of things, in fact.
Zoe Strimpel and Steve Dinneen
LIFE&STYLE
FRIDAY 1 JUNE 2012
24
cityam.com
JUBILEE BANK HOLIDAY SPECIAL
Parliament Hill
Regents Park
B
King
Battersea Park
Hyde Park
Green
Park
White City
Knightsbridge
Clapham
Common
Wimbledon
Common
2
11
6
4
5
10
7
3
9
8
12
1 Hampstead Heath Jubilee Party,
4 June, 3pm-10pm
This big party in Golders Hill Park will
involve lots of childrens entertainment, live
music acts, art, craft and food stalls,
community stalls, sports food and drink. The
day culminates with the lighting of the
Diamond Jubilee Beacon and fireworks.
www.barnet.gov.uk
2 Jubilee, Jubilee, Museum of Brands,
Packaging & Advertising, Westbourne
Grove, until 31 August
Mark the Jubilee with a trip to this celebration
of kitsch. The museum is showing off Jubilee
merchandise past and present. The exhibition
takes in memorabilia from past monarchs
including Queen Victoria and George V, as well
as Elizabeth IIs silver Jubilee.
4Diamond Jubilee Pageant Flotilla,
Putney Bridge, 3 June, 2pm
The 1,000 strong flotilla will be mustering between
Hammersmith and Putney Bridges and will go on until
around 4pm, when the boats will disperse from Tower
Bridge. The boats too big to travel with the rest of the
flotilla will form an Avenue of Sail up until Wapping. If
you see one thing this weekend, make it this.
5 Royal footmen high tea service,
Duke of York Square, 3 June,
11.30am-6pm
Join in the royal celebrations with a luxury
tea party near Sloan Square tube. High tea
and classic British biscuits, cakes and
sandwiches will be on offer, as well as
champagne for those wanting to get stuck
into the booze nice and early. Set to be one
of the weekends best teas.
3 BBC concert at Buckingham Palace,
Woolwich Big Screen; Waltham Forest
Big Screen; Water Poet Diamond Jubilee
Street Party, 4 June, 7.30pm
A star-studded concert featuring performances
by Paul McCartney, Stevie Wonder, Elton John,
Ed Sheeran, Jessie J, JLS, Kylie Minogue, Robbie
Williams and Alfie Boe.
6 Family festival in Hyde Park,
2-3 June, 10.30-7.30pm
This family-oriented party is hosted by the
lovely Myleen Klass. Each day will end with a
70-minute Disney concert, featuring a host of
instantly recognisable songs and characters.
With 50,000 people expected every day, you
can look forward to a lively celebration.
7 Piccadilly Big Jubilee Lunch,
3 June, Piccadilly Circus
A celebration of the best of British, Piccadilly will
be closed to traffic on Sunday as fairground rides
and entertainment put on by local icons such as
the Ritz and Fortnums will fill the streets. The
lunch is booked up but the fabulous street party
is open to all. piccadillybigjubileelunch.org
8 Trafalgar Square
Celebration, 5 June,
12pm-2am
The Royal Procession
will be streamed live
onto a big screen under
Nelson's Column,
followed by a fashion
show looking at six
decades of fashion and
listen to live music
performing six decades
of musical genres.
9 The Queen: Art
and Image at the
National Portrait
Gallery, until 21
October
See some iconic
portraits of the Queen
from the last 60 years,
including photographs
and paintings by artists
including Lucian Freud
and Andy Warhol.
11 Balham Street Party,
3 June, 12pm-6pm
Vintage fashion,
accessories, craft and
homeware will accompany
fine foods and
entertainment
balham.com/blog
10 Jubilee Jam Festival at Proud
Camden, 2-5 June, 12pm until late
A massive four-day festival featuring the
best of British live music and vintage
swap shops, all presented with a street
party feel. Its the perfect one-stop-shop
to enjoy the time off. Rent individual
stables in the venue for 49.
Your guide to a four day
1
Myleen
Klass will
host the
Family
Festival in
Hyde Park.
25
The Queen by the Royal Barge, featuring in the great Pageant Flotilla on Sunday.
FRIDAY 1 JUNE 2012
The great river pageant will kick off at around 2pm on
Sunday with over a thousand boats mustering between
Hammersmith and Putney Bridges

Waterloo
Blackheath
Brixton
gs Cross
Hackney Marsh
Barking
Victoria Park
Greenwich
Park
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12 Brixtons Jubilee
Picnic: The Brix, 4
June, 12pm-5pm
The picnic in Peace Garden
at The Brix at St Matthews
(the huge building on
Brixton Roundabout) will
sponsored by Sainsburys
and local restaurant
Bamboula will be in situ
with delicious Caribbean
food, bbq and ice cream.
There will also be tours of
the Brix building
throughout the day.
20Street Party at Westfield Stratford City, 2-5 June
Head to the Four Dials and Chestnut Plaza for a bbq, performances from
local musicians, jugglers and street artists; or just watch the Jubilee
pageant on the giant screen. Giant versions of Jenga, Connect 4 and
Kerplunk will be perfect for kids. uk.westfield.com/stratfordcity
18The Jubilee party in Mile
End Park, 4 June, from 1pm
Tower Hamlets council is
planning a party in the green
oasis of Mile End Park, with a
plethora of Jubilee-themed
festivities planned. Mile End
Park is also one of the few
places in London where you
will be able to see one of the
Jubilee beacons being lit at
10.30pm.
19 Royal River
Exhibition at National
Maritime Museum,
Greenwich, until 9
September
This is a Jubilee exhibit
celebrating the history of
the Thames and its royal
connections, as well as its
impact on the capital itself,
guest curated by historian
David Starkey. rmg.co.uk
17 Jubilee gun salute at London Bridge, 3 June
Whether or not youve been following the whole flotilla,
you wont want to miss this paen to military formality.
The salute will take place downriver from London
Bridge just as the flotilla passes the avenue of sail (a
passage made by boats too tall to pass under the
bridges of the pageant route). The Queens vessel and
her flotilla will then proceed past Tower Bridge.
16 God Save the Clam, migr Studios Rooftop,
London Fields, 12pm for lunch, 6.30pm for
dinner, until 3 June
The Queens Jubilee celebrations wouldnt be complete
without some punk parody, kindly provided by God
Save the Clam (tagline: Never Mind the Scallops). This
seafood/cocktail based event will let you enjoy views of
London while gorging on delicious seafood just what
Her Maj would probably rather be doing herself.
14 The Jubilee Gardens
on the South Bank
Swing by the just-reopened, much-
lauded Jubilee Gardens. The garden
redevelopment project has the
gardens into a green and sustainable
park with new flower beds, 69 trees
and a brand new contemporary
playground. jubileegardens.org.uk
15 Water Poet Jubilee
Street Party, Spitalfieds,
4 June, 12pm-6pm
The cobbled street outside the
pub will transformed into a fun
street party, with vintage wares,
music and delicious food. 9-11
Folgate Street, waterpoet.co.uk
13 Service of thanksgiving at St Pauls,
5 June, 10.30am, BBC 1
For a more contemplative Jubilee experience, tune
into the morning service at St Pauls, attended by
the Queen. The service will include a sermon by
the Archbishop of Canterbury and a reading by
Prime Minster David Cameron. The perfect way to
get you in a patriotic mood in the lead up to the
more raucous celebrations later in the afternoon.
fiesta of royally good fun
17
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Tower Bridge illuminated in Jubilee colours.
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FRIDAY 1 JUNE 2012
26 LIFE&STYLE JUBILEE FILM SPECIAL
For four weeks City A.M. and Brewin Dolphin will be shining a spotlight on
a series of City Treasures as we celebrate some of the great places and
institutions around us. Many of them are established with a long
and interesting heritage yet they still exude their core values
based on service and excellence.
Wednesday is Smithfield Market.
www.brewin.co.uk
Two beadles at the Arcade.
B
UILT for the super--rich of
Regency London, the
Burlington Arcade has been
one of Londons most
cherished and iconic institutions
since it first opened its doors in
1819. Despite controversy last year,
when plans for renovation by its
new owners were announced, it has
retained its sense of heritage and
unique charm, while adapting to
the retail landscape of the 21st
century.
Shops from Lulu Guinness to Jimmy
Choo now operate alongside the
traditional antiques, jewellery and
other fine craft shopkeepers. Old and
new sit together, assembled under
one beautiful roof indeed, many of
the shops specializing in jewellery
and luggage have been in situ for
more than 100 years. Some, like
Hancocks, have been there longer,
and a good few, including Globe-
Trotter, have a royal clientele
(Globe-Trotter has made suitcases for
the Queen).
Burlington has always been a
uniquely preserved environment,
with its own rules and regulations.
From the outset, it was proclaimed a
piazza for all hardware, wearing
apparel and articles not offensive in
appearance nor smell. It is guarded
and monitored by a fleet of top-
hatted, Edwardian coat-wearing
beadles, the worlds smallest police
force, originally recruited from Lord
Cavendishs 10th Hussars.
Along with keeping an eye out for
troublemakers and pickpockets, the
beadles make sure that nobody is
whistling, running, opening
umbrellas, singing, playing
instruments, carrying large parcels
or pushing through babies prams
these were original Arcade no-nos
and persist today. Whats amazing is
how the beadles have remained an
integral part of the Arcade; the
current Head Beadle was recruited in
2002.
The arcade now receives 4m visitors
a year drawing Londoners and
tourists alike for its beguiling mix of
history and contemporary fashion.
THE REGENCY INSTITUTION WITH UNIQUE TRADITIONS
BURLINGTON ARCADE

cityam.com
S
o Alien prequel Prometheus
has finally landed, 30 years
after Ridley Scott first directed
the universes most terrifying
life-form. Thats a lot of time to
gestate, especially in a world where
alien offspring take just a couple of
hours to burst from your chest in a
bloody explosion of entrails.
Scott promised something radically
different from his groundbreaking
sci-fi body horror classic and, it is safe
to say, thats what he delivers. Alien
was a stripped-back, slow-paced mas-
ter-class in tension. The eponymous
Alien was rarely seen, and was all the
more frightening for it. In contrast,
Prometheus opens with a long, clear
shot of a CGI humanoid creature dab-
bling with a dangerous looking arti-
fact (dont worry, I couldnt give you
any spoilers about this if I tried Im
still not sure where it fits into the
overall chronology). Its an early indi-
cation that this isnt a film about
clueless space-miners being chased by
the ultimate biological weapon.
Ill be frank: Prometheus is not as
good as Alien. Nowhere near as good.
Its not as good as Alien II either,
although its better than the later
installments. It certainly isnt down to
a lack of ambition: Prometheus takes
a more overtly philosophical tack
than weve seen in previous outings,
asking where humans came from;
what it means to have a soul; whether
a creator would necessarily be benevo-
lent; what it means to be a mother.
Given the framework (archeologists
jet into space in search of the origin of
the species), its little surprise that
these issues are sometimes rather
clumsily addressed but its far braver
and more thought provoking than
your average popcorn blockbuster.
Its major downfall, though, is a
sometimes-baffling lack of restraint.
Guy Pearces casting as the octogenar-
ian Peter Weyland is outrageously
profligate, given how much more
convincing it would have been to cast
an actual 80-odd-year-old; a scene
involving a self-performed cesarean
section, while living up to Aliens lega-
cy of body horror, crosses the line into
farce and some of the CGI is more
than a little gratuitous.
Despite its flaws, though,
Prometheus is a long way from being
a flop. The all-star cast, including
Charlize Theron and Idris Elba, add
an air of plausibility to even the most
far-fetched scenarios, although
Noomi Rapace, as the closest thing
the movie has to a lead, is no
Sigourney Weaver (despite wearing
her famous bandage outfit for half
the movie). Michael Fassbender,
though, is sublime as the inscrutable
android, David.
In the tangled Alien universe, which
has grown to include countless novels
and comics, Prometheus makes a kind
of sense. But, based on this, I worry for
the legacy of Blade Runner when Scott
inevitably gives it the same treatment.
S
now White and the Huntsman
may be packed with sleeping
beauties, a septet of dwarves
and kisses from your one true
love, but dont be fooled: this is no
Disneyfied fairytale its a grim, vio-
lent affair straight from the pages of
the Brothers Grimm.
Twilights Kristen Stewart plays the
angsty princess who is having step-
mother issues. Bad ones. The ones
where she tries to tear your heart out
to guarantee her immortality. You
know the kind. The stepmother is
played by a wickedly icy Charlize
Theron, who manages to imbue her
evil witch with a grain of sympathy
her desperate need to stay young and
beautiful is a poignant reflection of
a very 21st century problem.
The film looks sublime from the
gloomy, labyrinthine fairytale castle,
with its spires and turrets
clawing at the sky, to the
luscious, living forest of
the fairy-folk. The special
effects are top drawer:
the initial encounter
with a certain mirror, mir-
ror on the wall is particu-
larly breathtaking.
Bringing fairytales to live
action cinema is a tricky
business and Snow White
manages to stay true to
the material without
resorting to lazy voice-
over. At its best, you can
almost hear the pages
turning: And then the
princess found a gleam-
ing white steed and
escaped from the
wicked stepmother.
It isnt all good, though. Despite its
visual achievements, it feels empty: a
beautifully crafted jewelery box with
nothing inside it. It seems unsure
who its audience is: its too fright-
ening for children but lacks the
substance to really satisfy their
parents.
Much of this can be forgiven,
though, thanks to a show-
stealing turn by the seven
dwarves, led by a
Hobbit-sized Bob
Hoskins, an absurd-
looking Ian McShane
and Ray Winstone,
whose haircut alone
is worth the price of
entry.
FILM
PROMETHEUS
Cert 15 | By Steve Dinneen
hhhii
Prometheus is a visual treat, with Michael Fassbender (pictured inset) stealing the show as the instructable android, David
FILM
SNOW WHITE AND THE HUNTSMAN
Cert 12A | By Steve Dinneen
hhhii
TOP CAT has returned,
throwing off his terrestrial
shackles and gracing the big
screen. The revamped alley cat
and his lousy team of wise
guys have remained
somewhat faithful to their
vintage predecessors from the
1960s television series. But
while the characters may have
had a successful lick of paint,
the script most definitely has
TOP CAT: THE MOVIE 3D
Cert U | By Natasha Culzac
hhhii
FROM THE opening shot its
obvious that The Angels
Share is going to be a dark-
humoured affair, with a judge
haranguing a string of
reprobates, whose unyielding
remorselessness speaks
volumes.
Ken Loachs latest offering
attempts to shine a light on
the grim realities of a
Glaswegian underclass but he
THE ANGELS SHARE
Cert 15 | By Natasha Culzac
hhhhi
Kristen Stewart plays the angsty
princess who is cursed with
being the fairest of them all.
not. What could have been a
skilful aggrandisement of an
old classic is instead a limp
misfire, falling woefully short
on laughs. Kids will enjoy the
slapstick comedy, brought to
life in glorious 3D, but adults
hoping for the kind of
innuendo present in
something like Shrek will be
left disappointed.
There is a political
message about the perils of
dictatorship stowed away in
there but, for the most part, it
is just harmless family fun.
garnishes his trademark
social realism with a touch of
light-heartedness. The result
is a somewhat implausible
plot served with a generous
helping of optimism. With
scriptwriter Paul Laverty on
board, the pair brilliantly
convey how a group of
witless ex-offenders attempt
to pull off a get-rich-quick-
scheme. The quips and tough
depictions of Glasgows
mean streets are deftly
presented, despite the very
unlikely ending.
The movies to look out for this Jubilee weekend

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BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive Super League 10pm
Great Matches of European
Football 10.30pmFIFA Futbol
Mundial 11pmTime of Our Lives
12amSuper League 2amPremier
League World 2.30amFIFA
Futbol Mundial 3amTime of Our
Lives 4am-6amSuper League
SKY SPORTS 2
4.30pmLive ECB 40 League
Cricket 10pmWWE: Late Night
Smackdown 12amWWE: Bottom
Line 1amTight Lines 2am
Racemax 3amTrans World Sport
4amTight Lines 5amAmericas
Cup Uncovered 5.30am-6am
Premier League World
SKY SPORTS 3
7pmTight Lines 8pmLive PGA
Tour Golf 11pmEuropean Tour
Golf 1amPGA Tour Golf 4am
Road to London 4.30amATP Tour
Uncovered 5am-6amRacemax
BRITISH EUROSPORT
9.30amLive French Open Tennis
8pmGame, Set and Mats 8.30pm
French Open Tennis 10.30pm
MotoGP 11.30pmGame, Set and
Mats 12amGT Academy 12.15am
The Box 12.30am-1am
International Football
ESPN
7pmAustralian Rules Football
9.30pm30 for 30 10.30pmESPN
Kicks: Extra 10.45pmESPN Kicks:
MLS 11pmPremier League World
11.30pmPress Pass 2012 12am
UFC: The Ultimate Fighter 2am
Live UFC 5am-8amLive
Australian Rules Football
SKY LIVING
6.30pmCSI: Crime Scene
Investigation 7.30pmBattle of
the Brides 8.30pmCougar Town
9pmCriminal Minds 10pmSteps:
Concert Special 11pmBones
12amLadyboys 1amCriminal
Minds 2.40amMedium3.30am
Bones 4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmThe Apprentice 8pmWorlds
Craziest Fools 8.30pmSnog,
Marry, Avoid? 9pmHow to Be
England Manager 10pm
EastEnders 10.30pmRussell
Howards Good News Extra
11.15pmFamily Guy 12am
American Dad! 12.45amLive at
the Electric 1.15amRussell
Howards Good News Extra 2am
Snog, Marry, Avoid? 2.30amHow
to Be England Manager 3.30am
Angry Boys 4amBritain Unzipped
4.55am-5.25amLive at the
Electric
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmThe Big Bang
Theory 8.30pm2 Broke Girls
9pmFILMBeverly Hills Cop III
1994. 11pmRevenge 12amThe
Big Bang Theory 1amScrubs
1.35amHow I Met Your Mother
2.05amRules of Engagement
2.25amFranklin & Bash 3.10am
Desperate Housewives 3.55am
90210 4.40amGreek
5.20am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmStorage Wars 9pm
American Pickers 12amStorage
Wars 12.30amPawn Stars 1am
American Pickers 2amSwamp
People 3amIce Road Truckers
4amHeir Hunters 5am-6am
Ancient Discoveries
DISCOVERY
7pmBear Grylls: Born Survivor
8pmFreddie Flintoff Goes Wild
9pmWhale Wars 10pmAircrash
Confidential 11pmRiver Monsters
12amWhale Wars 1amAircrash
Confidential 2amDeadliest Catch
3amFlying Wild Alaska 3.50am
Wheeler Dealers 4.40amBear
Grylls: Born Survivor
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmA Wedding Story 8pmObese
and Pregnant 9pm19 Kids and
Counting 10pmWorlds Worst
Mom11pmSecretly Pregnant
12am19 Kids and Counting 1am
Worlds Worst Mom2amSecretly
Pregnant 3amA Wedding Story
4amA Baby Story 5am-6am
Birth Stories
SKY1
7pmSimpsons 8pmFuturama
8.30pmSimpsons 9pmA League
of Their Own 10pmAn Idiot
Abroad 2 11pmFILMGlee: The
Concert Movie 2011. 12.30am
American Pie: Reunion Special
1amRoad Wars 1.50amGadget
Geeks 2.45amBrit Cops 3.40am
Ross Kemp on Gangs 4.35am
Raising Hope 5.05am-6amDont
Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News
6.30pmBBC London News
7pmThe One Show: BBC News
8pmA Jubilee Tribute to the
Queen by the Prince of Wales
9pmEastEnders
9.30pmHave I Got News
for You
10pmBBC News
10.25pmRegional News
10.35pmThe Graham Norton Show
11.20pmThe National Lottery
Friday Night Draws 11.30pmWhite
Van Man 12amEastEnders 1.55am
Weatherview2amSign Zone: Silk
3amSign Zone: Question Time 4am
Sign Zone: The 1952 Show
4.45am-6amBBC News
6pmEggheads
6.30pmTOTP2
7.30pmDiamond Jubilee The
Queen on Tour
8pmGreat British Menu
8.30pmGardeners World
9pmThe Great British Story:
A Peoples History
10pmCHOICE Episodes
10.30pmNewsnight
11pmThe Review Show
11.45pmWeather
11.50pmFILMFrida: Oscar-
winning biopic, starring Salma
Hayek. 2002.
1.45amTaken 3.10amBBC News
4.45am-6amClose
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmPoms in Paradise
8.30pmCoronation Street
9pmElizabeth: Queen, Wife,
Mother
10.10pmITV News
10.40pmLondon News
10.45pmFILMStiff Upper
Lips: 1998.
12.35amThe Store: ITV News
Headlines
2.40amFILM The Towering
Inferno: 1974. 5.25am-5.30amITV
Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.30pmUnreported World
7.55pm4thought.tv
8pmCome Dine with Me
9pm8 Out of 10 Cats
9.30pmVery Important
People
10pmCHOICE Alan Carr: Chatty
Man 11.05pmStand Up for the
Week 11.55pmChannel 4s Comedy
Gala 2.25amRandom Acts 2.30am
My Name Is Earl 2.50am Dirty
Sexy Money 4.20amCrash Bang
Wallow4.25amHome Road
Movies 4.35amDeal or No Deal
5.30am-6.15amCountdown
6pmHome and Away
6.30pm5 News at 6.30
7pmWar Hero in My Family:
5 News Update
8pmThe Olympic Aquatic
Centre: Mega Builders: 5 News
at 9
9pmCHOICE The Mentalist
10pmCastle
10.55pmLaw & Order:
Criminal Intent
11.55pmInside Hollywood
12amSuperCasino
3.55amMotorsport Mundial
4.20amDivine Designs 4.45am
Divine Designs 5.10am-6am
Michaelas Wild Challenge
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5 6
7
8 9 10
11
12 13 14 15 16
17 18 19 20 21
22
23 24 25
26
27 28
23 14
16 23
8 29
17 21
27 16
14 9
13 38
22 4
11 10
24 34
6 12
28
14
12
18
17
3
6
16
10
39
35
19
24
15
30
5
8
32
15
7
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27
ACROSS DOWN
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P I S T E M A T H S
A U L G O
P A R I A H E A R L
A N N E O N O
C H A P A L T A R
Y M A D D M I
A E G I S W E A N
R I D E S N J
E M I R T H R I C E
A T O T C
P U S H Y T R Y S T
7 8 9 5 6 8 7 9
1 2 7 3 2 1 4 7
8 2 4 1 3 5
8 9 4 9 3 6 2
9 7 4 6 8 5 8 9
3 2 1 7 2 9
6 2 1 6 4 1 3 2
9 4 9 8 6 2 1
5 3 7 9 8 6
9 6 1 8 9 8 7 3
3 1 2 4 5 3 2 1
4
4
4
4
4
4
4
4
4
The nine-letter word was
SOUTHERLY
1 Fabulist of ancient
Greece (5)
4 Adult male
elephants (5)
7 Be unwell (3)
8 Contented (5)
10 Denite article (3)
11 Sneering look (4)
12 Bout, period of
indulgence (5)
14 Sybil Fawltys
husband in Fawlty
Towers (5)
17 Careless speed (5)
20 Units of distance (5)
22 Succulent plant (4)
23 Drinking vessel (3)
24 Fabulous,
wonderful! (5)
26 Be in a horizontal
position (3)
27 Digging tool (5)
28 Assemble (3,2)
1 Throbs dully (5)
2 Plant uid (3)
3 Recipient of money (5)
4 Promotional statement
(as found on the dust
jackets of books) (5)
5 Asian water lily (5)
6 Take without
permission (5)
9 Gather into a rufe (5)
13 Green vegetable (3)
15 Au revoir (5)
16 Nickname of US
president Eisenhower (3)
17 Organic component
of soil (5)
18 Eighteenth Greek
letter (5)
19 Bird of prey (5)
20 Old Testament
prophet (5)
21 Morsel (5)
25 Tap lightly (3)
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I
T
E
&
C
A
B
L
E
BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
EPISODES
BBC2, 10PM
The network asks Sean and Beverly to
reduce Matts role in Pucks! to create
more airtime for his teenage co-stars.
Comedy, starring Matt Le Blanc.
ALAN CARR: CHATTY MAN
CHANNEL4, 10PM
The host is joined by Michael
McIntyre. and Kylie Minogue. X Factor
winners Little Mix also drop in for a
chat. Last in the series.
THE MENTALIST
CHANNEL5, 9PM
Janes latest efforts to apprehend Red
John fail, while Lisbon and the team
hunt for a murderer after an
unidentifiable body is discovered.
TVPICK
27
TV & GAMES
cityam.com
FRIDAY 1 JUNE 2012
The Fugue set to grab centre stage for
Lloyd-Webber in todays Investec Oaks
Run for Glory is an enchanting experience for racing enthusiasts of all ages to enjoy.
Te flm tells the story of a racehorse and a small syndicate of owners. Te ups and
downs of horse racing are set to Beethovens masterpiece Ode to Joy.
to find out more and get your copy go to:
www.lifeofahorse.com
running time: 35 mins
Or to order via post send a cheque made payable to Run For Glory for 15 + 2 p&p to: Merville Arts, POBox 7046, LondonW1A 7BD
available now from:
























running time: 35 mins
a aaaila aable now ow v av av


w from:








FRIDAY 1 JUNE 2012
28
THEPUNTER
RACING
BILL ESDAILE PREVIEWS THIS WEEKENDS ACTION FROM EPSOM
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(I) Im 4l ?yo 0nly Winne| 207,B42
I 2I2 9<KK<I9<KK<I9<KK<I (2?)(BF) -0 ............................... 0 0'0onoghue
(7) Runs. ? Wins. I(A) Places. 2 Io,42
Trainer. A P 0'Brien (!RE) 0wner. Mrs Richard Renry & Mrs John Magnier
2 I-2 :FC@D8 (20) -0 .....................................................................................J 0rowley
(4) Runs. 2 Wins. I(S) Places. I I0,54I
Trainer. R Beckell 0wner. Mr And Mrs 0avid Aykroyd
3 4II-I :FHL<K (8) -0 .............................................................................................R Havlin
(5) Runs. 4 Wins. ?(F,A,0) ?5,228
Trainer. R Morrison 0wner. Ron Mary Morrison & Parlners
4 I4o-?2 ;<MFK@FE (I) -0 .................................................................................. R Hughes
(I2) Runs. 7 Wins. I(F) Places. I 2?,0o0
Trainer. A P 0'Brien (!RE) 0wner. Mr MTabor, 0 Smilh &Mrs John Magnier
5 I-I B8@C8E@ (2o) -0 .............................................................................. M Barzalona
(I?) Runs. 2 Wins. 2(S,0) 25,8?5
Trainer. M Al Zarooni 0wner. 0odolphin
o I-I B@JJ<; (??) -0 ...................................................................................... R L Moore
(I4) Runs. 2 Wins. 2(S) 4I,422
Trainer. A P 0'Brien (!RE) 0wner. Mr 0 Smilh, Mrs J Magnier, Mr M Tabor
7 IIII-? D8P9< (2o)(BF) -0 .............................................................................J P 0'Brien
(II) Runs. o Wins. 5(S,F,0) Places. I 270,Io8
Trainer. A P 0'Brien (!RE) 0wner. Mr MTabor, 0 Smilh &Mrs John Magnier
8 ?I-24 E8P8II8 (8) -0 .......................................................................................M 0wyer
() Runs. I2 Wins. I(0) Places. o I72,805
Trainer. M Channon 0wner. Prince A A Faisal
9 2I-2 J?@IF::FJK8I (I4) -0....................................................................0 Holland
(8) Runs. ? Wins. I(F) Places. 2 I2,45o
Trainer. R Morrison 0wner. Relena SpringIield Lld
I0 I-4I K?<=L>L< (Io) -0 .................................................................................. W Buick
(2) Runs. ? Wins. 2(0) oI,44I
Trainer. J 0osden 0wner. Lord Lloyd-Webber
II 54-? KFGK<DGF (I4) -0 .................................................................................T 0urcan
(o) Runs. ? Places. I I,o??
Trainer. M Tompkins 0wner. Roalco Limiled
I2 ?I-22 KN@IC (Io)(BF) -0 ............................................................................ P J 5mullen
(I) Runs. 4 Wins. I(S) Places. ? ?7,780
Trainer. A P 0'Brien (!RE) 0wner. Mr 0 Smilh, Mrs J Magnier, Mr M Tabor
I3 II MFN (20)(0) -0 ................................................................................. J P Murtagh
(?) Runs. 2 Wins. 2(S,A) 27,2I2
Trainer. W Raggas 0wner. Righclere Thoroughbred Racing-pocahonlas
I4 I-? N8J (Io) -0 ..................................................................................... J A Heffernan
(I0) Runs. 2 Wins. I(0) I5,25
Trainer. A P 0'Brien (!RE) 0wner. Mr 0 Smilh, Mrs J Magnier, Mr M Tabor
20II. 0ancing Rain 0, J P Murlagh 20-I (W Raggas), drawn (7), I? ran.
BETTIN0 F0RE0A5T: 5-2 Maybe, 3 The Fugue, 5 Vow, II-2 Kissed, I0 Kailani, I4 0olima, Io
5hirocco 5tar, 20 0oquet, Was, 25 0thers.
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F
OURTEEN fillies have been
declared for this afternoons
Investec Oaks, the highlight of
Investec Ladies Day, and Aidan
OBrien saddles an astonishing six of
them. Admittedly, the master of
Ballydoyle has issued a word of
warning about Kisseds participation
if the ground is not suitable, but even
five fillies makes for a monster team.
OBrien has won the fillies Classic
no less than three times with
Shantoush (1998), Imagine (2001) and
most recently Alexandrova (2006) but,
on each of those occasions, they were
the stables sole runners. In other
words, every time he has saddled
more than one runner in the race, he
has failed to land the prize.
This doesnt mean he cannot win
today, it purely indicates he may not
have one standout candidate. Now,
there has been plenty of support for
Maybe in recent weeks and the vibe
from Ireland is that she has come on
bundles from her slightly disappoint-
ing run in the QIPCO 1000 Guineas. In
fact, I was lucky enough to watch her
work in the flesh a couple of weeks
ago and she sparkled.
Some pundits have expressed con-
cerns about her handling the track,
but that doesnt cause me any worry
as she works on a replica Epsom gal-
lop at home. The niggling doubt I
have is whether shell truly stay the 12
furlong trip as shes so much speed
and the Guineas was always her tar-
get rather than her seasonal
pipe-opener.
OBriens horse can improve bun-
dles for their first run, as Power
showed last week when bouncing
back from Newmarket to win the
Irish Guineas, but she can hardly be
described as value at 11/4 with Coral.
Im sure shell go close, but she may
be running on empty late on and, for
that reason, Im out.
John Gosden has rather surprising-
ly never won the Investec Oaks and
Izzi Tops third place finish 12 months
ago is the closest hes come in seven
attempts so far. However, the Lord
Lloyd-Webber owned THE FUGUE can
change all that this afternoon on only
her fourth racecourse start.
My selection finished fourth in the
QIPCO 1000 Guineas on just her sec-
ond run and endured a nightmare
passage that day. She returned home
having been badly struck into behind,
but still reappeared quickly to run out
an impressive winner of the Musidora
at York. It wasnt necessarily what she
beat that day - Twirl may have been a
non-stayer - it was how she emphati-
cally put the race to bed in a few
strides having travelled so well.
She is not 100% assured to stay the
extra two furlongs of the Investec
Oaks, but there is plenty to suggest
she will and Im prepared to take a
chance at 3/1 with Paddy Power. I also
certainly wouldnt put those spread
bettors amongst you off selling Maybe
against her in a match bet at 0.
Vow is respected enormously and
even though Im sure shell confirm
the Lingfield form with Colima, shell
have to improve dramatically again to
take a hand this afternoon. Kailani
was impressive at Newmarket but
encounters very different ground this
afternoon, while Kissed is another
who wants the heavens to open.
At a big price, Im prepared to have
a small each-way bet on SHIROCCO
STAR, at a whopping 20/1 with Paddy
Power. Hughie Morrisons filly should
have won at Newbury last time and
exaggerated waiting tactics cost her
dearly. She may lack the class of some
of her rivals, but shell be staying on at
the death and could make the frame.
However, my best bet of the after-
noon is the Charlie Hills-trained
BALTY BOYS in the Investec Surrey
Stakes at 4.50pm. The seven-furlong
Listed event looks sure to be run at a
blistering pace and the Sir Alex
Ferguson-owned three-year-old
should dictate affairs from the front.
He showed plenty of speed as a two-
year-old, notably when beaten in a
blanket finish to the Middle Park
Stakes over six furlongs, and the fast
ground also holds no fears. He has
the most to fear from the John
Gosden-trained likely favourite,
Fallen For You, but Im not sure shell
handle the track and she didnt look
like a natural speedball at Lingfield
last time.
The opening two races are pretty
unappealing from a betting perspec-
tive and if forced to make a selection
Id probably throw a few quid each-
way on Night Lily at a big price in the
opener, while I cant separate
Gatewood and Resurge in the second.
WORTHADD wont be much of a
price in the Investec Diomed Stakes
(2.50pm), but looks very hard to
oppose. The former Italian-trained Sir
Mark Prescott inmate brings genuine
Group One form to the table and
wont have to be at his best to see off
the likes of Side Glance and Marcret.
At a bigger price, St Moritz can chase
home my selection for the forecast.
Finally, DUNNOs jockey booking
of Ryan Moore for the Investec Mile
(3.25pm) caught my eye and Dandy
Nichollss runner is back down to his
last winning mark. He looks sure to
put up a bold show from the front at a
decent price and can go well. Ill also
be backing UNEX EL GRECO as he
looks to have slipped to a very fair
mark and seems to be stepping for-
ward with each run.
nPointers
WORTHADD 2.50pm Epsom (today)
DUNNO e/w 3.25pm Epsom (today)
UNEX EL GRECO e/w 3.25pm Epsom (today)
THE FUGUE 4.05pm Epsom (today)
SHIROCCO STAR e/w 4.05pm Epsom (today)
BALTY BOYS 4.50pm Epsom (today)
29 cityam.com
FRIDAY 1 JUNE 2012
1/4 ODDS
ON ALL
EPSOM RACES
Each-way 1/4the odds a place 1-2-3
All above races: Non-runner money back. Rule 4 may apply.
Prices subject to uctuation.
11/4 The Fugue
7/2 Maybe
5/1 Vow
7/1 Kissed
9/1 Kailani
14/1 Shirocco Star
16/1 Colima
20/1 Coquet
28/1 Betterbetterbetter
33/1 Twirl
33/1 Was
50/1 Devotion
100/1 Nayarra
200/1 Toptempo
INVESTEC OAKS
1 Mile 4 Furlongs 10 Yards, Group 1, Epsom 4.05pm, Live on BBC2
30 FREE BET!
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INVESTEC WEALTH &
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1 Mile 2 Furlongs 18 Yards, Handicap,
Epsom 2.15pm, Live on BBC2
Each-way 1/4 the odds a place 1-2-3
7/2 Gatewood
6/1 Resurge
15/2 Cry Fury
15/2 Stand To Reason
15/2 Pekan Star
14/1 Pivotman
16/1 Black Spirit
16/1 Borug
16/1 Haylaman
16/1 Ottoman Empire
16/1 Ramona Chase
16/1 Rumh
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FROM 8.30AM - 9AM
<GJFDJ8KLI;8PC@M<FE99:(
+%''
@EM<JK<:;<I9P>IFLG(
(I) Im 4l ?yo 0nly Winne| 75I,40B
I I??-I 8JKIFCF>P (22) -0 ............................................................................................R L Moore
(7) Runs. 4 Wins. 2(S,0) Places. 2 52,887
Trainer. A P 0'Brien (!RE) 0wner. Mr 0 Smilh, Mrs J Magnier, Mr M Tabor
2 I?-I 9FE=@I< (Io) -0 ..................................................................................................... J Fortune
(8) Runs. ? Wins. 2(S,0) Places. I 8,755
Trainer. A Balding 0wner. Righclere Thoroughbred Racing-pocahonl
3 II-I :8D<CFK (28) -0 ................................................................................................J P 0'Brien
(5) Runs. ? Wins. ?(0S,0) ?55,I2
Trainer. A P 0'Brien (!RE) 0wner. Mr 0 Smilh, Mrs J Magnier, Mr M Tabor
4 ?2II-3 :8M8C<@IF (2I) -0 ......................................................................................Hayley Turner
(I) Runs. o Wins. 2(F,0S) Places. 4 20,5o5
Trainer. M Tregoning 0wner. Mr 0uy Brook
5 II-II D8@EJ<HL<E:< (2I)(0) -0 ............................................................................. T 0urcan
(?) Runs. 4 Wins. 4(A,0S,0) 5I,07o
Trainer. 0 Lanigan 0wner. Niarchos Family
o o2I42I D@:B;88D (2?)(0) -0 .....................................................................................P Hanagan
(4) Runs. Wins. ?(S,0) Places. ? 2I7,I?4
Trainer. R Fahey 0wner. Sheikh Mohammed Bin KhaliIa Al Makloum
7 2I5 D@E@D@J<I@JB (2?) -0 .............................................................................. J P 5pencer
() Runs. ? Wins. I(S) Places. I 7,oo
Trainer. A Balding 0wner. Mrs Filri Ray
8 5I-? IL>><;:IFJJ (I4) -0 .........................................................................................0 0'Neill
(2) Runs. ? Wins. I(0S) I,8I2
Trainer. R Candy 0wner. Mr T Barr
9 I-2I K?FL>?KNFIK?P (I4) -0 ................................................................................W Buick
(o) Runs. ? Wins. 2(S,F) ?4,4I8
Trainer. J 0osden 0wner. Mr 0eorge Slrawbridge
20II. Pour Moi 0, M Barzalona 4-I (A Fabre), drawn (7), I? ran.
BETTIN0 F0RE0A5T: 8-I5 0amelot, 9-2 Bonfire, 8 Astrology, I0 Main 5equence, Io Thought Worthy, 25
Mickdaam, 50 Rugged 0ross, oo Minimise Risk, 0avaleiro.
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]fik_\lck`dXk\=cXkiXZ`e^^cfip%
S
INCE saddling High Chaparral to win
the 2002 Epsom Derby, Aidan OBrien
has had 39 unsuccessful attempts to
win back flat racings most prestigious
prize. However, the unbeaten superstar-elect
Camelot flies the flag for Ballydoyle in
tomorrows Investec-sponsored showpiece
and is no bigger than 4/6 with Paddy Power
to bring the losing streak to an end.
The impeccably bred son of the late
Montjeu began his three-year-old campaign
last month with a relatively comfortable win
in the QIPCO 2000 Guineas at Newmarket.
What made it all the more impressive was
the fact that connections felt that the one
mile trip was plenty short enough for him
and that hell actually come into his own
over 10 furlongs and further.
Camelot can by no means yet be labelled a
great and if you want to be ultra-critical, its
possible to sit and pick holes in his form to
date. However, sometimes reputation can
beat the form book and its obvious the
Coolmore enterprise feel theyve unearthed
a potential star.
So, can anything lower his colours
tomorrow? The answer is a tentative yes
and if they are ever going to be lowered it
will be around Epsom. Lets face it, there
have been 14 odds-on Derby favourites
beaten and the last three to try
(Entrepreneur 4/6 in 1997, Tenby 4/5 in
1993 and El Gran Senor 8/11 in 1984) have
all failed.
At a recent stable visit to Ballydoyle,
OBrien warned that Camelot was not
guaranteed to stay the 12 furlong trip as he
seems to have inherited strong speed
influences in his bloodline (Kingmambo and
Danehill). This could explain the decision to
only send two runners to the race rather
than the usual four or more, as a Derby run
at a breakneck pace may not be ideal.
Another potential concern is the relative
lack of experience of his big-race jockey
Joseph OBrien. Yes, hes won Group One
races all over the world, but hes only ridden
around Epsom three times in his life and
plenty more experienced than he have
encountered problems in the past.
He rode Camelot with arguably too much
restraint at Newmarket; as if he was aboard
a six furlong horse, and was certainly caught
napping when narrowly beaten on St
Nicholas Abbey in Ireland last time. It may
be clutching at straws to suggest his pilot
could be the reason he may get beaten, but
there is chance enough to warrant putting
me off backing him at well odds-on.
Second favourite Bonfire is a logical
alternative to Camelot but is plenty short
enough at just 4/1 with Coral. Andrew
Baldings Dante Stakes winner was double
that price a couple of weeks ago and has
both stamina and temperament issues to
contend with. He is by no means a certainty
to stay as his close family all seemed at their
best over 10 furlongs. There is also every
chance he will boil over in the preliminaries
as he is reportedly a bit of a Jack the Lad,
though thats apparently of no concern to
his big-race jockey.
Now, the two horses that genuinely
interest me at decent prices are Aidan
OBriens ASTROLOGY and David Lanigans
MAIN SEQUENCE. The former was no
superstar as a two-year-old and after winning
his maiden, he was beaten when stepping up
to Group Two and Three company. However,
he was always expected to flourish as a
three-year-old and looked a completely
different proposition when routing a small
field in the Dee Stakes at Chester.
Admittedly, he beat three horses that may
not have handled the atrocious ground like
he did and the 11 length winning margin
may well be flattering. It was just the
manner of the victory that really caught my
eye and I love the way he has matured both
physically and mentally. He had the balance
to manoeuvre himself around the unique
bends at Chester and those attributes will
stand him in good stead around Epsom.
The booking of Ryan Moore is also a huge
positive as hes sure to commit a fair way
from home on a horse we all know stays
hell even get further in time. Camelot and
Bonfire both have slight stamina doubts, so
look sure to be switched off and delivered
late. In fact, there is every chance that
Astrology may be allowed to open up in front
as Main Sequence and Mickdaam are others
that will be looking for cover.
There arent many stronger jockeys in the
game than Moore and if Astrology sets sail
for the judge at the two furlong pole, it may
take a very good one to close him down.
Treasure Beach, At First Sight and Fame And
Glory are all examples of OBrien second and
third strings who have nearly stolen this race
from the front in recent seasons. I expect
Astrology to follow in their footsteps and
even if he does get reeled in by his
stablemate, he warrants each-way support at
10/1 with Coral.
As for Main Sequence, he has done
nothing but improve all season and has a
100 percent record. If he was trained by Sir
Michael Stoute hed be half his current price
(10/1 with Paddy Power) and he showed at
Lingfield last time this trip holds no fears.
Hes another who looks sure to be in the mix
up and should hit the frame at worst.
nPointers
ASTROLOGY e/w 10/1 4.00pm Epsom (tomorrow)
MAIN SEQUENCE e/w 10/1 4.00pm Epsom (tomorrow)
Camelot defends his unbeaten record in
tomorrows Investec Derby
Camelot must be opposed in
bid to become a true great
DISRUPTED PLANS
2002 World Cup: Englands build up
is overshadowed by the metatarsal
injury suffered by captain David
Beckham who, though passed fit, is
not at his best. Gary Neville and
Steven Gerrard miss out altogether.
Euro 2004: Wayne Rooney injures a
metatarsal, contributing to Englands
quarter-final defeat to Portugal
2006 World Cup: Rooney again
injures a metatarsal pre-tournament
and, like Beckham in 2002, plays but
fails to impress. Michael Owen suffers
a knee injury against Sweden that
rules him out for months.
2010 World Cup: Knee injury rules
out captain Rio Ferdinand
ENGLAND batsman Kevin Pietersen
has revealed a desire to prolong his
Test career was the motivation
behind his retirement from one-day
and Twenty20 international cricket.
Pietersen, 31, yesterday announced
he no longer wishes to compete in
international limited-overs cricket
and believes his decision to do so will
ultimately ensure his long-term Test
availability, though he ideally would
have chosen to remain available for
this years ICC World Twenty20.
After a great deal of thought and
deliberation, I am announcing my
retirement from international one-
day cricket, said Pietersen. With
the intensity of the international
schedule and the increasing
demands on my body, approaching
32, I think it is the right time to step
aside and let the next generation
come through to gain experience for
the ICC World Cup in 2015.
I am immensely proud of my
achievements in the one day game,
but still wish to be considered for
selection for England in Test cricket.
For the record, were the selection
criteria not in place, I would have
readily played for England in the
upcoming ICC World Twenty20.
The England and Wales cricket
board dictate that players cannot
pick and choose between one-day
international and Twenty20 cricket
and means that any player like
Pietersen that wishes to stop
competing in one format must also
give up the other.
England Crickets managing
director Hugh Morris, however,
admits that with the Twenty20
tournament, scheduled to start on 18
September in Sri Lanka, nearing,
Pietersens decision comes as a blow.
The England and Wales Cricket
Board is disappointed by the timing
of Kevin's decision less than four
months before we defend our ICC
World Twenty20 title.
Kevin is a world-class player and I
would like to thank him for his
efforts and look forward to his
continued contributions to the Test
match side.
[But] as the programming and
planning for ODI and T20 format
cricket are very closely linked any
player making himself unavailable
for either of the one-day formats
rules himself out of consideration
for both formats.
Pietersen opts
for Tests over
shorter game
England and Chelsea midfielder Frank Lampard has been ruled out of Euro 2012 after suffering a thigh injury in training on Wednesday
ASTON Villa and Norwich are set
for a dramatic dispute over the
formers desire to appoint Paul
Lambert as their new manager
after the Scot demanded he be
allowed to leave for Villa Park.
Norwich have already refused
Lamberts resignation as the highly-
rated 42-year-old fights to succeed
the sacked Alex McLeish at Villa
but his departure remains very
probable and is likely to be
concluded once compensation has
been agreed between the two clubs.
The club regrets to confirm that
Paul Lambert has offered his
resignation whilst discussions with
another club are taking place, said
Row over compensation blocks
Villas bid to appoint Lambert
a statement from Norwich, who
Lambert has inspired to mid-table
in the Premier League from League
One in just three seasons.
The developments contrast those
between Liverpool and Swansea,
where compensation of between
4million and 5m has been agreed
to allow the Anfield club to install
Brendan Rodgers as manager.
The Welsh club have already
begun planning for Rodgerss exit
and, in a bid to maintain the
consistency they have enjoyed in
recent years, look set to approach
Wigan assistant manager Graeme
Jones, who assisted Latics boss
Roberto Martinez when he coached
the Swans prior to Rodgerss
appointment at the club.
FRIDAY 1 JUNE 2012
30
SPORT
cityam.com/sport
BY DECLAN WARRINGTON
ENGLAND manager Roy Hodgson
has described the loss of midfielder
Frank Lampard to injury as a huge
blow to the team and his plans for
Euro 2012.
Lampard ended the season by cap-
taining Chelsea to Champions
League victory but on Wednesday
pulled his thigh while training and
has consequently been ruled out
from selection.
Liverpools Jordan Henderson, sub-
ject to agreement from Uefas med-
ical team, has been called up to
replace Lampard but, with
Manchester Citys Gareth Barry also
unavailable after similarly suffering
an injury on the eve of the tourna-
ment, it is difficult to avoid the con-
clusion that Englands midfield
options have been weakened.
Compounding the absences of
Barry and Lampard, Arsenals talent-
ed Jack Wilshere, a key player under
former manager Fabio Capello, is
injured, and Manchester Uniteds
experienced Michael Carrick refused
to make himself available for selec-
tion. Between them they have 170
international caps and Hodgson
admits that the departure of
Lampard, who possesses 90 of those
caps, is damaging.
Its a huge blow for the team,
especially coming after the loss of
another senior player in
Gareth Barry, said
Hodgson. The fact
that the doctor cannot
guarantee Frank could
take part in any of
the group matches
means we have to
replace him.
Apart from it
being a huge
blow to me and
the team, Im
especially disap-
pointed for Frank
himself. He has
been in very
good form and
was looking forward to
Cruel blow for Lampard forces
Hodgsons hand to Henderson
the tournament. He made a huge con-
tribution towards us qualifying for
the Euros so it is cruel to be forced
out through injury just before the
tournament.
Hodgsons honesty will appeal to
England coach Gary Neville, who has
called for a realistic approach
towards the teams ambitions after
the embarrassing way in which
their qualification for major
tournaments has previously
been celebrated.
Neville was recruited soon
after Hodgsons appointment
in May and, having been a
prominent member of
Englands squads at three
European Championships and two
World Cups, is sufficiently aware of
the ambitious expectations that gen-
erally accompany them.
After qualifying in Italy in 97-98
and then against Greece in 2001-02, it
was almost when you look back
now a little bit embarrassing, said
Neville. All wed done is qualify. But
it was like wed reached the World
Cup final.
Its about showing that humility
to say Spain are there, France did win
World Cups, Brazil are there. We are
trying to get to them [finals] rather
than thinking we are there already
just by qualifying for a tournament.
Neville also added that Englands
selection of Krakow city centre as
their tournament base was chosen to
replicate the players club conditions.
BY DECLAN WARRINGTON
BY DECLAN WARRINGTON
JOCKEY Ryan Moore believes Kissed
can win todays Investec Oaks
because she is tailor-made for the
nature of the race, despite doubts
over her participation.
Kisseds high-knee action has
prompted uncertainty over her
participation in the race, with
trainer Aidan OBrien unsure if the
conditions are suitable for the horse,
but jockey Moore believes the filly is
ideally suited to compete.
I think Kissed is tailor-made for
the race, Moore said. I believe
Kissed could be the one to beat.
Tomorrows Epsom Derby,
meanwhile, will feature its smallest
field in over a century with nine
Kissed is made to measure for
Investec Oaks win, says Moore
BY SPORTS DESK STAFF
Jordan Henderson, left, has been
called up to replace Lampard
Pietersen wants to prolong his Test career
runners Camelot, Astrology,
Bonfire, Main Sequence, Mickdaam,
Thought Worthy, Cavaleiro,
Minimise Risk and Rugged Cross
set to compete.
CITY A.M.S
INVESTEC
DERBYISSUE
IS OUT TOMORROW
31
IN BRIEF
New sponsor for League Cup
FOOTBALL: The Football League has
agreed a new four-year sponsorship
for the League Cup, formerly the
Carling Cup, with credit card company
Capital One. The tournament will be
known as the Capital One Cup from
the start of the 2012/13 season.
Bolt records fastest sprint of 2012
Jamaican sprinter Usain Bolt
recorded 9.76 seconds in the 100m
sprint at the Rome Diamond League,
the fastest time in the world this year.
I knew I could do it, said Bolt.
cityam.com
FRIDAY 1 JUNE 2012
SPORT Taekwondo UK have
defended their right to pick their
own team for London 2012, despite
the British Olympic Associations
demand that a new selection panel
be assembled as the row over the
omission of world No1 Aaron
Cook intensifies.
The BOA rejected the
nomination of Lutalo Muhammad
for the British Olympic team after
growing concerned that STUK
disproportionately judged the
selection criteria in overlooking
Cook, though STUK remain
confident in their reasoning and,
according to an official statement,
are debating their next move.
The statement said: The panels
knowledge and technical expertise
has been key to this [selection]
process and we maintain that their
role is to ensure that we nominate
the best set of athletes who in turn
represent the best opportunity for
Great Britain to achieve medal
success at London 2012.
We have the right to appeal this
decision within 24 hours and are
now considering our position.
Taekwondochiefs
defiant over 2012
selection row
BY SPORTS DESK STAFF
BRITAINS Andy Murray dismissed
growing fears over his back injury
after struggling before overcoming
Jarkko Nieminen to reach the third
round of the French Open.
Murrays injured back forced his
withdrawal from the Madrid Masters
in May but, despite his visible
Murray: Back injury wont stop
me competing at Wimbledon
discomfort in the 1-6, 6-4, 6-1, 6-2
win, he remains relaxed about his
fitness ahead of both Wimbledon
and London 2012.
Its a completely different thing
to what I had beforehand, Murray
said. If it was the same, then I
would be really, really concerned
about Wimbledon and obviously
the Olympics.
But so long as what I'm getting
told by doctors and the physios is, if
it is just a muscle spasm, then that's
nothing to be overly concerned by.
The opening set was
overshadowed by the obvious pain
Murray was experiencing and largely
influenced its outcome before the
Scot fought back with an
impressively gutsy performance,
something he is adamant will not
affect his future preparations.
[Spasms] are, when they happen,
very difficult to shake off, especially
when its early morning. It takes a
bit of time for your body to warm
up, he added. But Im not doing
any permanent damage by finishing
a match like I did today.
Murrays success could not be
matched by Heather Watson,
however, after the young Brit lost 6-3,
6-4 to Julia Goerges of Germany.
Regardless, the Olympics hopeful
remained philosophical.
Im coming in with a different
mentality now, a more confident
approach, said Watson.Julia played
well, she didnt give me any rhythm
at all and thats what top players do.
If its short they just put it away,
hit good shots. Theyll miss some but
I think I was just getting a bit
frustrated. Ive just got get used to it.
Im still working on being aggressive
and learning from moments like
this.
BY DECLAN WARRINGTON
Results
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Andy Murray, bottom and left, believes
his troublesome back will not hinder his
chances of competing at Wimbledon
Read City A.M.s preview of this weekends
Investec Derby racing action from Epsom
The Punter: Pages 28-29

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