AMERICAN billionaire Philip

Anschutz has put the
entertainment group that owns
The O2 and a string of US venues
and sports teams up for sale.
Anschutz Entertainment
Group (AEG) operates the music
venue – the world’s most
successful by ticket sales – on a
long-term lease from the
government. Parent company
Anschutz Corporation yesterday
said it was “an appropriate time”
to sell AEG, which has become
the world’s second-biggest live
music company after Live Nation.
AEG is understood to be
looking for one party to buy all
of its assets, which include LA
Galaxy, a stake in the LA Lakers
basketball team and more than
100 entertainment venues, rather
than contemplating a break-up
of the business. The sale is being
handled by Blackstone.
AEG has operated The O2,
formerly the Millennium Dome,
since 2001.
Bob Diamond, Barclays’ former boss, was expected to improve his relationship with the FSA
BOB Diamond and Barclays chairman
Marcus Agius were both warned in
2010 that the bank’s new chief execu-
tive could be undermined by the
Libor-fixing investigation, according
to official documents published yes-
terday.
But the bank and the Financial
Services Authority (FSA) still declared
Diamond a suitable person to run a
major bank, allowing him to take the
top job at the start of 2011.
Diamond and Agius both handed in
their resignations in July of this year
when Barclays’ involvement in the
Libor-manipulation scandal became
public.
The documents published by the
Treasury Select Committee also show
the board had concerns over Bob
Diamond’s readiness to become chief
executive, and that the FSA was wor-
ried he was a poor communicator.
The FSA’s notes of a meeting held on
15 September 2010 to confirm Bob
Diamond’s approval as chief execu-
Bob Diamond.”
But the Libor investigation was not
the only concern either party had
over Diamond’s suitability for the job.
Marcus Agius was concerned
Diamond was “very competitive,” but
hoped to “see him mature and relax
given he has now achieved his goal”
of reaching the top job.
The FSA’s correspondence also
implies the regulator had concerns
over its relationship with Diamond,
with Sants explaining that during
interviews with the then-Barclays
Capital boss their interaction “had
not reached the level of openness,
transparency and willingness to air
issues with the FSA as is the case with
John Varley,” – the outgoing chief
executive.
“BD therefore needs further devel-
opment in this area as he steps up to
CEO. BD did not disagree,” it added.
As a result of the regulator’s con-
cerns, the document shows Varley
agreed to “coach” Diamond in the
months before he fully took over.
Barclays declined to comment.
www.cityam.com FREE
tive detail the discussion around
Libor.
“Agreeing to Bob Diamond’s
appointment at this time was on the
basis that the current view of the
investigation does not have an
adverse effect,” it read. However, then-
FSA boss Hector Sants “stressed that
this is an ongoing investigation and
the FSA’s position could change so
the board should be aware. Marcus
Agius confirmed that he will notify
FTSE 100 ▲5,888.48 +20.32 DOW ▲13,577.96 +13.32 NASDAQ▲3,182.62 +4.82 £/$ 1.62 unc £/€ ▼1.24 -0.01 €/$ 1.30 unc
ISSUE 1,721 THURSDAY 20 SEPTEMBER 2012
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30/07/12 til 26/08/12 is 128,484
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TEN GOLDEN
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DAY 7 PAGE 21
US tycoon
puts The O2
up for sale
BY JAMES TITCOMB
FSA FLAGGED UP
DIAMONDFLAWS
Barclays promoted boss despite concerns over Libor probe
BY TIM WALLACE
The Millennium Dome is up for grabs
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allister.heath@cityam.com
Follow me on Twitter: @allisterheath
IN BRIEF
Universal to get EMI go-ahead
nUniversal Music Group is set to win
EU approval for its $1.9bn (£1.1bn)
purchase of British record label EMI as
early as this week, after agreeing to
sell off some assets. The combined
group would include a vast library of
current top-selling and legendary
names including Jay-Z, Katy Perry and
Pink Floyd. Critics have said the deal
raises substantial concerns because it
would reduce the number of major
music companies to three from four.
Nasdaq defends Facebook plan
nAmerica’s Nasdaq stock exchange
has defended its plan to offer $62m
(£38m) to firms who were affected by
its botched float of Facebook. Nasdaq
told US regulators that the proposed
compensation “goes well beyond
what is required under current Nasdaq
rules.” Major market makers and
broker dealers say they lost upward of
$500m because of technical glitches
during Facebook’s 18 May stock
market debut.
Banks warned of cyber threat
nA financial services industry group
warned banks yesterday to be on
heightened alert for cyber attacks
after Bank of America and JP Morgan
Chase experienced unexplained
outages on their public websites. The
warning, from the US Financial
Services Information Sharing and
Analysis Center, cited “recent credible
intelligence regarding the potential”
for cyber attacks as the reason for
raising the threat level to “high”.
Nick Clegg apologises for
pre-election fees pledge
NICK Clegg last night issued an apol-
ogy for his pre-election promise to
oppose any rise in student tuition
fees, saying it had been “a mistake”.
In a video message he said: “We
made a pledge, we did not stick to it,
and for that I am sorry.”
“It was a pledge made with the best
of intentions – but we should not
have made a promise we were not
absolutely sure we could deliver. I
shouldn’t have committed to a poli-
cy that was so expensive when there
was no money around.”
However it was made clear that the
Deputy Prime Minister was not apol-
ogising for his December 2010 deci-
sion to back the Conservatives and
vote in favour of raising the cap on
university fees from £3,290 to £9,000
per year but merely for making an
unrealistic promise in the first place.
The decision to apologise for a
recent policy decision is highly
unusual in Westminster politics and
shows the extent to which student
fees have damaged Clegg’s personal
brand. He is keen to move on from
the issue and assert his leadership
ahead of this weekend’s Lib Dem
conference.
It is understood that Clegg person-
ally took the decision to issue the
statement, which will be used as a
party political broadcast next week.
Push to relax terms of tech IPOs
A push to make it easier for high-growth
technology companies to list in London
will be launched by the government
today. Ministers will put forward
proposals including relaxing listing rules
on the London Stock Exchange, allowing
companies to list as little as 10 per cent of
their business.
HMRC wins stamp duty battle
The government has won an important
legal victory in its fight against stamp
duty avoidance, in a blow to similar
schemes used to dodge an estimated
£170m of tax. A tribunal has ruled against
a company that used “sub-sale” relief,
originally designed to prevent double
taxation, to avoid £290,000 of stamp
duty on a 2006 purchase of a business
park in Stockton-on-Tees.
Banks to charge less for Direct Line
Banks handling the flotation of Direct Line
Group are to charge less than normal as
they seek to breathe life into a moribund
market for stock market launches. The
banks stand to earn less than £20m, to be
split between a 12-strong syndicate.
Monaco tax avoidance revealed
More than 2,000 Britons in Monaco are
costing the UK economy £1bn a year in lost
taxes. An investigation shows how an elite
uses Monaco to reap the benefits of British
assets and connections but escape the
levies that apply to other citizens.
Slash and burn has hit growth
The coalition has inflicted unnecessary
damage on growth by pursuing a deficit-
reduction strategy that has crushed public
investment, according to a report by
Lombard Street Research.
JJB sale hit by HMRC investigation
The sale of beleagured retailer JJB Sports
has been dealt a blow after details of a tax
investigation emerged. It is alleged that
the company wrongly charged VAT on
children’s clothing including Manchester
United and Liverpool FC replica football
kits, dating back to 2006.
Blankfein opposes austerity
Lloyd Blankfein, the chief executive of
Goldman Sachs, has said he is against
austerity measures in the short term as the
US fiscal cliff looms.
HP named in bribery case
German prosecutors named Hewlett-
Packard in a criminal bribery case
potentially exposing the computer maker
to fines. The case alleges that executives
paid kickbacks to win a contract from
Russia’s Prosecutor General Office.
Liberty to bid for Telnet Group
Liberty Global to launch a tender offer for
the nearly 50 per cent of Telenet Group that
it doesn’t already own, valuing the Belgian
cable firm at roughly $5.2bn (£3.2bn).
START-UP companies in innovative
sectors will have assistance to avoid
regulations designed for
established firms, the government
will announce today.
It will task an independent
committee with identifying rules
that hinder so-called “challenger
businesses”, mainly in the
technology sector, that often have
unusual working practices but help
economic growth.
“Challenger businesses create
wealth and jobs – we should
champion them at every
opportunity. I don’t want these
pioneers falling foul of outdated
regulations,” business minister
Michael Fallon will say in Sheffield.
The proposals are based on
research published today by Mark
Littlewood, chief executive of the
Institute of Economic Affairs.
“Upstart, challenger businesses
which provide alternatives to the
established order too often find
themselves in a sort of legal
twilight zone, whereby regulations
designed for a very different world
simply aren’t appropriate or even
comprehensible,” said Littlewood.
However the government
rejected his call for start-ups to be
allowed more flexibility to hire and
fire workers by letting such firms
treat workers as self-employed for a
lengthy period.
Government to
help start-ups
beat red tape
Nick Clegg’s personal popularity is in negative territory, even amongst Lib Dem voters
4
NEWS
BY JAMES WATERSON
BY JAMES WATERSON
To contact the newsdesk email news@cityam.com
O
NE of the greatest imbalances
at the heart of the global
economy is that many Western
nations have been consuming
too much and producing too little.
There is nothing wrong with imports.
Protectionism is always wrong. But
over time imports need to be paid for,
either by exports, or from the
proceeds of external investments, or
by handing over assets, such as
domestic property or securities.
The problem is that the process of
adjustment that would ordinarily
flow from the market has been cor-
rupted by government policy and
errors. The Chinese – who have been
pursuing a mercantilistic policy by
under-valuing their currency and pre-
venting their citizens from consum-
ing and investing their money abroad
freely – have converted the revenues
generated from their exports into a
EDITOR’S
LETTER
ALLISTER HEATH
How one ticking economic timebomb is being slowly defused
THURSDAY 20 SEPTEMBER 2012
vast foreign exchange reserve, much
of it held in government bonds.
Combined with America’s persistent
budget deficits, even during the good
times, this helped create a bizarre
symbiotic relationship between the
US and China, with huge effects on
the global economy.
US consumers bought Chinese
goods; these were paid for in dollars;
these dollars were swapped into gov-
ernment bonds. For all intents and
purposes, the US authorities were
printing bonds and handing them to
the Chinese in return for cheap
goods. The Chinese economy got a
boost, as did the US consumer, yet the
whole exercise was based on credit
conjured up out of thin air. Most
importantly of all, the massive pile of
US Treasuries accumulating in
Chinese vaults helped push down the
US government’s cost of borrowing,
and because of Treasuries’ bench-
mark status, the long-run cost of bor-
rowing for everybody. This recycling
of dollars into Treasuries, and their
senseless accumulation, helped cre-
ate a false market in debt. It was one
of the main drivers of the global prop-
erty and credit bubble.
The good news is that the US cur-
rent account deficit is shrinking,
which means fewer Treasuries are
being exported and the accumulation
of global dollar reserves will therefore
reserves were privately held).
Unfortunately, while America’s
falling current account deficit and
China’s reduced appetite for forex are
improving global imbalances, and
reducing the chances of another bub-
ble, quantitative easing from central
banks is having the opposite effect.
But that is a column for another day.
NONSENSE ON STILTS
Now let me get that straight. Nick
Clegg isn’t apologising for his policies
– in fact, he isn’t even apologising for
breaking his promise. He is apologis-
ing for having made a promise, and is
promising (yes, promising) not to
make promises again. If you’re con-
fused, don’t worry – so is everybody
else, including Clegg himself.
slow. The current account deficit hit a
record high 6.5 per cent of GDP in the
fourth quarter of 2005; it is now down
to three per cent of GDP, figures out
this week revealed, which while high
remains a substantial improvement.
China’s forex reserves appear to have
peaked, and are now falling slowly,
dropping to around $3.24 trillion at
the end of the second quarter –
though the decline to date remains
tiny, and the reserves are still up ten
times in a decade, from just $386.4bn
in 2002. Beijing still has a very long
way to go before it fully liberalises its
currency and capital flows. But at
least the Chinese are buying fewer for-
eign bonds, which means that yields
will no longer artificially be pushed
down further (though of course they
are hugely lower than they would be
had the multi-trillion demand from
China never existed, and all of the
“We have apologised before but peo-
ple were so angry they weren’t listen-
ing,” business secretary Vince Cable
explained on BBC’s Newsnight.
“Nick wants to make it absolutely
clear that there is a distinction
between the pledge – which was
wrong – and the policy which we’re
now operating, which we don’t apolo-
gise for and is actually in many ways
an improvement.”
Cable is the favourite to take over the
Lib Dem leadership if Clegg steps down
before the next election. Earlier this
month a poll suggested the party’s sup-
port would rise from eight to 11 per
cent of voters if Cable was in charge.
Harriet Harman, deputy leader of the
Labour Party said of the apology: “This
was not just the small print of his
manifesto, this was Nick Clegg’s key
election promise when he asked peo-
ple to vote for his party. It is not good
enough for him to just brush that
promise aside.”
Yesterday Ipsos Mori research
revealed that the proportion of the
public who are unhappy with Clegg’s
performance has risen from 58 per
cent to 66 per cent over the last month.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
EADS’ chief executive Tom Enders
said yesterday that the firm’s planned
mega-merger with BAE Systems repre-
sented a “perfect fit”, as he offered
reassurance to workers after last
week’s drop in the company’s share
price.
Enders said in a letter to employees
that discussions with stakeholders
regarding the deal were “moving for-
ward”, and he would be able to
update the market with further
details “soon”.
However, a source close to the deal
said that it was unlikely the 10
October deadline would be brought
forward.
“It [the deal] doesn’t add complexity,
it provides opportunity. Despite some
initial critical reactions, word will
soon go around that this deal makes
good business sense,” Enders added.
Enders said that the focus of EADS
at the moment is discussing gover-
nance and national security issues,
but said that talks over the $45bn tie-
EADS boss says
BAE merger is
the perfect fit
BY CATHY ADAMS
up were progressing well.
“We are currently in constructive
and advanced discussions with all rel-
evant governments,” he said, adding
that both parties are “trying to accom-
modate their concerns and national
security interests as best as possible”.
“Good governance is a key prerequi-
site for both companies, it’s the ‘go’ or
‘no go’ for this project,” Enders contin-
ued.
He concluded the letter with: “I
know that with combining businesses
between EADS and BAE Systems, we
can seize a unique opportunity – an
opportunity which will allow us to
stay in the top league of our industry
and to actively shape it in the decades
to come.”
After talks on a tie-up between EADS
and BAE were leaked last week, gov-
ernment officials have this week been
setting out their views on the deal.
It is understood that German
Chancellor Angela Merkel will discuss
the deal with Fraench President
Francois Hollande when they meet on
Saturday.
William Hill mulls joint offer for
Sportingbet as eyes Aussie unit
WILLIAM HILL is weighing a joint
takeover of online gambling rival
Sportingbet in a deal that would
secure it possession of the firm’s
lucrative Australian operations.
Sportingbet’s Australian
operations account for over 90 per
cent of Sportingbet’s profits and
comprise around a third of
Australia’s internet gambling
market.
The betting operator said
yesterday that together with GVC
BY KATIE HOPE Holdings it is considering making a
joint offer for the business which is
valued at around £330m.
William Hill would cherrypick
the Australian business, with GVC
acquiring most of the rest.
“The boards of William Hill and
GVC believe that by acting in
combination they represent a
highly credible possible offer for the
entire Sportingbet business,
substantially in cash,” they said.
Sportingbet said that it had not
yet received any approach in a short
statement later yesterday and
advised shareholders not to take any
action.
The firms need to make a formal
offer or walk away by 16 October,
according to takeover rules.
Bookmaker Ladbrokes held
takeover talks with Sportingbet last
year but called them off because of
concerns over regulatory issues in
Turkey. Sportingbet has since sold
its Turkish operations.
Sportingbet shares have risen
steadily over the last three months.
They closed up 16 per cent
yesterday at 51p.
Tom Enders wrote to employees of EADS to reassure them the deal was progressing
RUSSIAN oil company Rosneft is
understood to be talking to banks
about raising $15bn (£9.2bn) in
financing to buy BP’s stake in TNK-
BP, following BP chief Bob
Dudley’s meeting with Vladimir
Putin to discuss the sale.
Putin met with Dudley, BP
chairman Carl-Henric Svanberg
and Rosneft chief executive Igor
Sechin to get an update on the
transaction process, as well as
Rosneft seeks $15bn from banks
to finance stake buy in TNK-BP
BY CATHY ADAMS discussing the British oil major’s
commitment to Russia.
In June, BP announced it would
start the process of selling its 50
per cent stake in Russia’s third
largest oil company TNK-BP, and in
July Rosneft said it was in talks to
acquire half of the troubled
venture.
A source close to the deal said
there were a number of other
interested parties in BP’s stake of
TNK-BP, but their names had not
been disclosed.
THURSDAY 20 SEPTEMBER 2012
5
NEWS
cityam.com
A EUROPEAN banking union threat-
ens to cause a split in financial super-
vision between Eurozone states and
those outside the single currency, the
continent’s leading industry regula-
tor said yesterday.
The comments came after German
Chancellor Angela Merkel had sought
to talk down divisions between her
country and France over the imple-
mentation of a banking union.
European leaders have agreed that a
single banking watchdog must be
formed as a pre-condition to allowing
Eurozone rescue funds to directly
inject cash into struggling lenders.
Yet Andrea Enria, head of the
European Banking Authority, warned
yesterday: “We risk a polarisation...
between the euro area, with single
rules and supervisory practices, and
the rest of the EU, which would oper-
Banking union
could threaten
single market
BY JULIAN HARRIS
ate with a still wide degree of national
discretion in...applying the single rule-
book.” Policymakers could struggle in
“finding the right glue to keep the sin-
gle market together,” she added.
Meanwhile politicians from
Germany’s ruling coalition want the
European Central Bank’s (ECB)
planned new powers to apply only to
systemically-relevant or cross-border
institutions, according to a copy of
their proposals obtained by Reuters.
The government’s members of par-
liament also reject proposals for cross-
border bank deposit guarantees,
which they want to remain the
responsibility of individual states.
Merkel said that she would continue
negotiations with French President
Francois Hollande this weekend. “We
have the task of finding solutions that
are good for Europe,” Merkel said, say-
ing she enjoys a “trustful” relationship
with Hollande.
IN BRIEF
Gaspar hails Portugal’s progress
n Portugal’s painful economic reforms
are producing encouraging results, its
finance minister and his German
counterpart said yesterday after
meeting in Berlin. Competitiveness is
improving and government spending is
now under control, Wolfgang Schaeuble
and Vitor Gaspar said in a joint
statement. Gaspar added that Portugal’s
Treasury bill auction yesterday achieved
interest rates similar to neighbouring
Spain’s which showed, he argued, that
the country was rebuilding its access to
debt markets. At an oversubscribed
auction which included 18-month issue
that will not be redeemed until after the
end of Portugal’s bailout, the average
yield on 18-month debt fell to 2.967 per
cent from 4.537 per cent in April.
Construction shrinks in Eurozone
n Production in the Eurozone’s
construction sector dipped by 0.3 per
cent in July compared to the previous
month, data from Brussels’ Eurostat
office revealed yesterday. The figure
marked the second straight month of
decline, after construction dipped by 0.6
per cent in June. Compared to the same
time last year, production in the industry
was down a considerable 4.7 per cent in
July, as the economic effects of the debt
crisis continue to be felt. While
construction only consists of a relatively
small part of the Eurozone’s economic
output, the data suggests that the single
currency area will struggle to lift itself
from recession in the third quarter of the
year. The Eurozone economy shrank 0.2
per cent in quarter two.
More states could join the euro
n Deepening problems in the Eurozone
may not deter other European states
from joining the single currency bloc,
the Prime Ministers of Croatia and Latvia
revealed yesterday. Croatian PM Zoran
Milanovic said that interest in signing up
to the euro – which is currently the
official currency of 17 European
countries – remains strong in the Balkan
state. Most Croats would still say “yes”
to adopting the euro, Milanovic said
after a meeting with German Chancellor
Angela Merkel. Croatia is scheduled to
join the Eurozone next summer.
Meanwhile the Baltic state of Latvia
could become the 19th member of the
single currency. Its PM Valdis
Dombrovskis told The Guardian that the
positives still outweight the negatives.
THE GREEK government is expected to sell its consulate in Holland Park as part of wide-
ranging measures to cut costs and maintain the support of its bailout providers. The
elegant terrace house in west London is currenly undergoing renovation (pictured
above, pre-renovation) and could be one of many foreign buildings sold off. Meanwhile
reports from Athens said yesterday that a further €2bn of cuts have been agreed.
GREECE TO FLOG HOLLAND PARK CONSULATE
EUROPEAN commissioner Michel
Barnier has proposed delaying the
introduction of the EU’s new
capital requirements for insurers –
known as Solvency II – from 2014
to 2015, it was reported yesterday.
Tim Ford, a Solvency II specialist
at Ernst & Young, told City A.M.
that a forthcoming impact study
means delaying it now could result
Solvency II insurance reforms
could be delayed once again
BY JAMES WATERSON
in a “more timely implementation
date”.
“Either they proceed now or they
delay until the findings from the
impact study are available. The
risks are that the impact study
could come back with a major issue
and delay it more.”
Any change to the timeframe
would need the approval of the
European council and be backed by
the full European parliament.
THURSDAY 20 SEPTEMBER 2012
6
NEWS
cityam.com
BIG Four accounting firm Deloitte
said it generated record global rev-
enues of $31.3bn (£19.3bn) last year,
as it enjoyed its fastest growth since
2008.
The firm said turnover grew 8.6
per cent in dollar terms in the 12
months to 31 May, compared to 8.4
per cent growth a year ago.
Deloitte credited this to nervous
firms asking for more of its advice.
“Complexity, disruption, and
speed of change are the new reality
for our member firm clients, and for
Deloitte’s own business,” said global
chief executive Barry Salzberg.
Asia Pacific performed particularly
strongly, with revenues growth
accelerating to 16.3 per cent, while
the pace of growth in the US slowed
slightly to 9.1 per cent, from 9.9 per
cent a year ago.
Deloitte said it continued to
expand, hiring 51,400 people world-
wide to lift its workforce to more
than 193,000 and putting it on track
Asian growth
drives revenue
rise at Deloitte
BY MARION DAKERS to reach 250,000 by the 2015 fiscal
year. The firm also made 30 acquisi-
tions during the period.
“[I]t is of utmost importance that
we stay ahead of the curve and devel-
op our professionals so they are well
equipped to serve clients,” said UK
chief executive David Sproul.
Last month Deloitte’s UK arm post-
ed an 11 per cent rise in revenue for
the year to 31 May, bringing in a total
of £2.3bn.
Profits distributable to the UK
firm’s partners edged up to £569m, a
6.3 per cent increase on last year.
The strong results mirror those of
rival PwC, which on Monday
unveiled a 6.5 per cent rise in UK rev-
enues.
The Big Four professional services
firms have come under scrutiny
from the Competition Commission
for their dominance of the audit
market, with the watchdog due to
report its provisional findings next
month. Deloitte audits 20 of the
FTSE 100, and advises three quarters
of the Fortune 500 in the States.
City bonuses plunge again but
other sectors begin to recover
FINANCIAL services workers saw
their bonuses drop last year, official
data revealed yesterday, while
bonuses increased in almost every
other industry.
The payouts for workers in
financial and insurance activities
slumped nine per cent to a total of
£13.3bn in 2011-12, down from
£14.6bn in 2010-11.
And that is well below the peak of
almost £20bn paid out in 2007-08.
The drop takes the average payout
per worker in the industries down
BY TIM WALLACE
11 per cent from £13,500 to £12,000.
The industry has yet to recover
from the financial crisis, with banks
still under pressure to keep costs low,
raising capital levels instead of
giving out bonuses.
And although financial bonuses
had shown some signs of life in 2010-
11, the Eurozone crisis has further
knocked market activity. In
particular, the lack of merger and
acquisition activity, as well as initial
public offerings, means there are
fewer big deals for investment
bankers to earn high payments on.
Meanwhile total bonuses across all
sectors rose from £36bn to £37bn,
meaning financial sector bonuses
now make up just 36 per cent of the
total.
The second largest sector by bonus
was information and
communications, which saw a 16 per
cent rise from £3.9bn to £4.5bn,
followed by the professional,
scientific and technical sector which
recorded a 19 per cent jump from
£3.3bn to £3.9bn.
And by average payout per worker,
the second largest is £6,900 in
mining and quarrying, up nine per
cent on the year.
INVESTOR George Soros has dropped from 7th to 15th place in Forbes magazine’s list of the
wealthiest Americans. Microsoft co-founder Bill Gates retained the top spot, with his wealth
estimated at $66bn (£40bn), while Berkshire Hathaway’s Warren Buffett took second place
($46bn). New York mayor Michael Bloomberg, founder of the media firm, is tenth with $25bn.
SOROS DROPS OUT OF FORBES TOP 10 RICHEST
THURSDAY 20 SEPTEMBER 2012
7
NEWS
cityam.com
FINANCIAL SERVICES BONUSES FELL LAST YEAR
Total bonuses (£ billion) 2010/11 Total bonuses (£ billion) 2011/12
S
o
u
r
c
e
:
O
N
S
WHOLESALE
TRADE
2.3
2.7
ADMIN
& SUPPORT
1.3
1.6
RETAIL TRADE
& REPAIR
2.8 2.7
SCIENTIFIC &
PROFESSIONAL
3.3
3.9
COMMS &
INFORMATION
3.9
4.5
FINANCE &
INSURANCE
13.3
14.6
* All industries
TOTAL 2011/12
£37bn*
£4,400
AVERAGE BONUS PER WORKER 2011/12
COMMS & INFO
£12,000
FINANCE & INSURANCE
£2,500
ADMIN & SUPPORT
of 2011/12
bonuses 36%
Financial services
RUSSIA’S second largest bank
yesterday announced it is seeking to
sell shares next spring, following the
central bank’s successful sale of a
stake in the country’s largest
institution Sberbank.
VTB’s boss Andrei Kostin said “we
will go ahead” with a $2bn (£1.2bn)
sale next year, which could include
new shares as well as some
privatisation. “We were waiting for
Sberbank, it managed to place
shares. Good for them.”
The Sberbank deal saw the central
bank sell 7.6 per cent of the firm for
$5.2bn, with the offer heavily
oversubscribed on the day the book
opened, driving the discount on the
share price to the lowest level ever
for a Russian firm, at 1.9 per cent.
Bankers who worked on the
Sberbank sale said they were hopeful
it would spark more privatisations.
“This was the best deal of the
year,” said Troika Dialogue’s Ruben
Vardanian. “It is a good case study,
showing transparent firms with the
right corporate governance can get a
result even in difficult markets.”
Sberbank sale
sparks more
privatisations
BY TIM WALLACE
ONE BANK of England rate-setter
strongly considered voting for
expanding quantitative easing (QE)
in August, meeting minutes
revealed yesterday, though
in the end there was a
unanimous vote against.
Analysts agreed that
this lone dove on the
Monetary Policy
Committee (MPC) was
probably David Miles,
known for his pro-QE
stance.
A bigger contin-
gent of the MPC
thought there
was a good
case for
increased asset
purchases at
some point in
BY BEN SOUTHWOOD
the near future – but all nine ended
up voting against increasing QE
from £375bn.
But in this meeting policymakers
continued with their “wait and see”
approach – saying it was difficult to
predict the effects of the funding for
lending scheme, and the current
£50bn package of purchases.
The MPC also expressed concerns
that inflation would not fall back as
far as they had expected in their
August inflation report – which
they cited as a reason for keep-
ing QE as it stood.
The option to cut the Bank’s
base rate from 0.5 per cent was
also unanimously rejected –
but MPC members did not dis-
cuss this decision in detail.
DO YOU THINK THE BANK OF ENGLAND
SHOULD PRINT MORE MONEY ?
Interviews by Phoebe LovelandandEleanor Boyer
“Yes – printing more money and lending at a
low rate as the banks have been doing is
good. It’s important to let the economy flow, and banks
need to be taking more risks to get positive results.”
These views are those of the individuals above andnot necessarily those of their company
ROSHIM SOOD
TECH MAHINDRA

“I think it’s a good idea; anything the Bank can
do to encourage people to invest and spend in
this current economy will prove beneficial in the future. If
the US is printing money we should definitely follow suit.”
ROB STECK
IVY MASON HR CONSULTING
“Not for now, the economy is starting to balance
itself out and we are seeing several small signs of
recovery. Putting money into the economy now will not aid
unemployment and will just create unnecessary problems.”
STEVEN
LLOYDS BANKING GROUP


CITYVIEWS
Governor Mervyn King has led the Bank of England on its unprecedented policy easing
Rate-setter David Miles is often
a pro-QE voice in the body
THURSDAY 20 SEPTEMBER 2012
9
NEWS
cityam.com
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Leadenhall Market
hosts City festival
Taking tea with John Hegley
Lloyds first bank to use cheap
funds from state programme
LLOYDS became the first bank to
use the government’s new
Funding for Lending scheme (FLS)
yesterday, drawing down £1bn
from the Bank of England.
It pledged to lend the money
on to businesses and households.
However analysts said they do
not expect Lloyds’ overall lending
to rise, as the bank is still
rebalancing in the aftermath of
the financial crisis and its rescue
by the taxpayer.
The FLS offers banks cheap
funding of up to five per cent of
their stock of lending as it stood
at the end of June.
If banks increase their total
lending they can borrow more
BY TIM WALLACE and at a lower interest rate. But if
they reduce lending, the cost rises.
Lloyds’ chief executive Antonio
Horta Osorio said he hopes to
access more than this initial £1bn.
“This initial £1bn is just the
start. We are committed to
helping Britain prosper by
encouraging investment and
supporting businesses and
households with the best possible
terms through Lloyds Funding for
Lending,” he said.
But analysts do not expect
Lloyds to increase lending overall.
“It is good that the average cost
of funding is coming down, and
we have seen some re-pricing of
mortgages offers and SME
lending,” said Ian Gordon from
Investec. “But Lloyds will remain a
negative net lender to the UK
market by virtue of its high loan
to deposit ratio.”
Other banks have used the
existence of the FLS scheme to
lower their loan rates, but Lloyds
is the first bank to draw down
money from the scheme.
Gains ease after market rally
prompted by Japan stimulus
THE BANK of Japan’s (BoJ)
decision to push its monetary
easing programme above the $1
trillion mark saw global shares
rally in early trading, although
stocks later pared gains due to
ongoing economic worries.
The announcement that a
further 10 trillion yen (£79bn)
will be added to the BoJ’s asset
buying and loan programme
initially sent the yen to a one
month low against the dollar,
yet it bounced back during the
day’s trading.
The greenback jumped to
79.21 yen, its highest level since
BY JULIAN HARRIS
22 August, after the news. Yet
lingering concerns over the
European debt crisis saw it sink
back to around 78.41 last night.
And the euro itself hit a day
high of 103.63 yen after the BoJ’s
statement, yet dropped to 102.19
yen as risk aversion spread due
to fears over Spanish reluctance
to seek a bailout and activate
more efforts by the European
Central Bank (ECB) to bring
down borrowing costs.
The BOJ said that it would lift
asset purchases by 10 trillion
yen, almost double what some
had expected – to take the total
size of its monetary easing
programme to 80 trillion yen.
Japanese stocks rallied to a
four-month high on the news,
the Nikkei ending up 1.19 per
cent. But the S&P Asia 50 index,
which weighs stocks in Hong
Kong, Korea, Singapore and
Taiwan, was down 0.35 per cent.
USD - JPY Exchange Rate
8pm 4pm 12pm 8am 4am 18Sep
78.00
78.50
79.00
Lloyds Banking Group PLC
19Sep 13Sep 14Sep 17Sep 18Sep
37.50
38.00
38.50
39.00
39.50
40.00
40.50
41.00 p
39.50
19Sep
Bank minutes
show one dove
in favour of QE
LONMIN shares spiked nine per cent
in opening trade yesterday, as miners
at the Marikana mine are due to
return to work this morning.
Over the six weeks since the strike
started on 10 August, Lonmin’s share
price has dropped from 753p to 654p.
It ended down 0.62 per cent at the
close of play yesterday.
A wage agreement was signed earli-
er this week, which offered strikers a
signing bonus of 2,000 rand and an
average wage rise of between 11 and
22 per cent. They had originally
demanded 12,500 rand a month.
Despite a resolution at Marikana,
strikes are still occurring across
South Africa’s platinum belt, as
neighbouring mines are calling for
similar pay hikes.
It is understood that police fired
tear gas at protestors at a mine run
by top precious metal producer
Anglo American Platinum (Amplats)
yesterday, as miners demanded high-
er wages.
The producer’s Rustenberg opera-
tions were closed last weekend due
Lonmin secures
wage deal but
strikes spread
BY CATHY ADAMS
to violence and intimidation at the
mines, although they reopened on
Tuesday. Amplats has told its employ-
ees that if they do not return to work
by this evening, “legal avenues will be
pursued”.
Gold producer Gold Fields is also
dealing with a strike, which is into its
11th day, at its KDC West mine near
Johannesburg. Around 85 per cent of
its 15,000 workers are on strike,
according to a Gold Fields
spokesman. However, he insisted that
none of their demands can be enter-
tained at the moment due to a two-
year collective wage agreement
signed last year.
L
ONMIN finds itself stuck
between a rock and a hard place
in South Africa. Getting its
miners back to work might
seem an unmitigated positive, but it
runs the risk of returning the price
action in the sector – and on the
metal it mines – to some very ugly
fundamentals. Which may go some
way to explaining why its shares
enjoyed such a brief spike yesterday.
The price of platinum has been
climbing since August, but only on
the back of the uncertainty and lost
supply caused by the strikes. Over
the last week, the trend has been
downward again. Although ongoing
unrest at other mines may give it
some support, even at its September
peak platinum was just at a level it
last reached six months ago.
The trouble with platinum is that
it is so useful. According to Johnson
Matthey, almost two thirds of the
demand for the metal in 2011, 65 per
cent, was accounted for by the
production of catalytic converters
and other industrial uses. Rather
than matching gold’s status as a
store of value, platinum is easy prey
in every downturn.
Now look at this week’s figures on
new car sales in Europe. They fell 8.5
per cent in August. One more month
and they will have been falling for a
year straight. They haven’t been so
bad for two decades. That’s also
terrible news for the platinum
industry, given its reliance on all
those catalytic converters to keep
demand up. Johnson Matthey
calculates that 48 per cent of the
2011 platinum supply was called for
by the global autocatalyst industry.
Catalytic converters accounted for 67
per cent of European demand,
which itself made up 36 per cent of
global net demand.
So it’s hard to see what shine
there is staying on platinum if the
mines remain open. Lonmin looks
like it has solved one problem, only
to have to face another.
IN BRIEF
Amec buys stake in Brazilian firm
n International engineering and project
management firm Amec has acquired a
50 per cent stake in Brazilian Kromav
Engerharia in a $12.5m (£7.7m) deal.
Completion is expected later this year.
The acquisition of Kromav, a privately-
owned offshore oil and gas engineering
firm based in Rio de Janeiro, is a
strategic move for Amec, which wants to
develop its service capabilities in the
Latin American country.
Adobe misses revenue expectations
n Adobe Systems, maker of Photoshop
and Acrobat software, last night
reported a third quarter that missed
revenue expectations due to currency
effects. Net income for the third quarter
was $201.3m (£123.9m), or 58 cents per
share. Adobe said that revenue rose
slightly to $1.08bn from a year earlier,
but missed Wall Street estimates of
$1.10bn. Adobe said the currency hit
amounted to about $9m.
K2 Advisors sells out to Franklin
n K2 Advisors became the latest fund of
hedge funds to sell out to a much bigger
rival, with a deal announced last night to
sell a majority stake to Franklin
Resources. Current management of K2
will receive no up-front payment under
terms of the deal, Franklin Resources
said in a statement. Franklin, which
owns the Templeton brand of
international mutual funds, will be able
to buy the remainder of K2 from 2016.
BOTTOM
LINE
MARC SIDWELL
Lonmin PLC
19Sep 13Sep 14Sep 17Sep 18Sep
600
580
620
640
660
680
700
720 p
651.50
19Sep
THURSDAY 20 SEPTEMBER 2012
10
NEWS
cityam.com
Out of the frying pan into the
fire for the miners of platinum
TESCO’S loss-making Fresh & Easy
chain in the United States is “fight-
ing nicely” in a tough market, the
chief executive of the retailer said
yesterday, underlining his belief
that the chain can have a prof-
itable future.
Tesco boss Philip Clarke has this
year rejected investor calls to with-
draw from the US, though he told
shareholders at their annual meet-
ing in June he would pull the plug
on the business if it continued to
disappoint.
Speaking at the World Retail
Congress (WRC) yesterday, Clarke
gave the West Coast chain, which
trades from nearly 200 stores, a
renewed vote of confidence.
“The stores that we have continue
to grow nicely and the reason it’s
worth persisting is that the stores
themselves fulfil a particular need
for a particular group of cus-
tomers,” he said.
“It’s only five years old, it’s play-
ing in a play ground with some
very big and very old retailers who
are very wise and it’s fighting nice-
ly.”
In April, Clarke said he did not
expect Fresh & Easy to break even
until its 2013-14 financial year,
Tesco’s Clarke
insists US chain
is fighting back
BY HARRY BANKS against a previous target of 2012-13.
Tesco, the world’s third-biggest
retailer, has slowed its expansion
plans for Fresh & Easy and though
the chain’s underlying sales growth
slowed to 3.6 per cent in its fiscal
first quarter from 12.3 percent in
the fourth quarter of the previous
financial year, the CEO said opera-
tional improvements, such as new
product ranges, were having an
impact.
“Already the changes that we’ve
been making have gone some way
to prove that’s there’s life in Fresh &
Easy yet,” he said.
“We’ll continue to hopefully see
those sales grow and it move
towards profitability.”
Tesco will report first-half results
on 3 October. Its shares closed 0.15
per cent lower at 343.45p.
Tesco PLC
19Sep 13Sep 14Sep 17Sep 18Sep
340
342
344
346
348 p
343.45
19Sep
THURSDAY 20 SEPTEMBER 2012
11
NEWS
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special
first direct lets you get on with
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Banking with first direct is a convenient
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plc 2012. first direct, 40 Wakefield Road, Leeds LS98 1FD. All rights reserved.
Capital & Counties gets cash to
help it expand Covent Garden
PROPERTY group Capital & Counties
(Capco) yesterday raised £149.1m to
help fund its ambitious plans for
Covent Garden.
The firm placed 68.4m shares at
218p per share, or a 1.1 per cent dis-
count to Tuesday’s closing price.
Capco said the funds will be used to
help fund its £200m plans to snap up
more properties and improve income
at the Covent Garden estate over the
next 12 to 18 months.
Capco has its eye on attracting new
luxury retailers and restaurants to
BY MARION DAKERS
the area, as well as converting offices
on the upper floors of some buildings
into high-end flats.
It has also identified £50m of acqui-
sitions to work on this year, including
£18m that have already completed.
The company has been overhauling
its Covent Garden portfolio since
demerging from Liberty in 2010. It
currently owns 54 properties in the
area, including the famous covered
market, the Apple store and a string
of shops near the Royal Opera House.
The firm is targeting an estimated
rental value of between £60m and
£65m by 2015, which would support
an estate valuation of almost £1.3bn.
“Capco will be robustly capitalised
post the placing, which is necessary
in our view for a business producing
minimal earnings and where future
net asset value growth is still highly
geared into the potentially volatile
land value cycle at Earls Court,” said
analysts at Espirito Santo in a note.
Capco last week won its long-await-
ed planning permission for its £8bn
redevelopment of Earls Court, which
will see 7,500 new homes and a five-
acre park built on the side of the exhi-
bition centre and existing housing
estates.
CAPCO’S push to improve Covent Garden
has long been backed by Bank of
America Merrill Lynch (BAML) and UBS.
The former has been Capco’s financial
adviser since it demerged from Liberty
and listed in London and Johannesburg
in 2010.
BAML also contributes to the Covent
Garden estate as a sponsor for the Royal
Opera House’s cinema seasons.
It acted as joint bookrunner, adviser and
corporate broker in yesterday’s placing,
fielding a team led by global capital mar-
kets chairman Rupert Hume-Kendall,
managing director Ed Peel and UK cor-
porate and investment bank head Simon
Mackenzie Smith (who is also a judge at
this year’s City A.M. Awards).
Meanwhile UBS, which was also
bookrunner, adviser and broker, used a
team headed up by vice chairman Hew
Glyn Davies, head of real estate Fergus
Horrobin and UK equity capital markets
boss Christopher Smith.
The same group at UBS led a £100m
placing to fund Covent Garden work in
May 2011.
There were more familiar faces in BNP
Paribas and HSBC, which acted as co-
lead managers on the placing, following
their work on Capco’s £70m credit facili-
ty back in May and a £300m refinancing
in November.
Alex Midgen and Richard Blackwell at
Rothschild acted as joint financial advis-
ers.
ADVISERS CAPCO’S £149M SHARE PLACING
SIMON
MACKENZIE SMITH
BANK OF AMERICA
MERRILL LYNCH
CVC Capital Partners, one of the
biggest private equity firms in the
world, has followed rivals such as
Apax Partners and TPG by selling a
stake in its parent company to a
group of private investors.
It is understood the firm, which
has investments in Formula One
and theme park group Merlin
Entertainment, has sold a ten per
cent stake in its Luxembourg
domiciled parent company to a
consortium of private investors.
These are thought to include
CVC sells ten per cent stake to
three sovereign wealth funds
BY CITY A.M. REPORTER Kuwait Investment Authority
(KIA), the Government Investment
Corporation of Singapore (GIC)
and an unnamed Asian fund.
It follows a trend for private
equity management to give large
sovereign wealth funds a seat at
the table.
In February 2010, Apax Partners
sold off a ten per cent stake to
investors including China’s
sovereign wealth fund China
Investment Corporation. TPG is
also understood to have sold
management stakes to KIA and
GIC in April 2011.
SHARES in French Connection tum-
bled eight per cent yesterday after it
swung to a loss for the half-year and
admitted that trading “continued
to be very difficult”.
The retailer recently completed a
review of the business, pledging
yesterday to focus on improving
store operations, altering its prod-
uct range and closing underper-
forming outlets.
Chairman and chief executive
Stephen Marks conceded that the
turnaround plan “is likely to take
some time”, with the effects not
felt for around two years.
“We are not expecting any
improvement in the UK retail trad-
ing environment in the second half
of the year,” the firm added.
The retailer reported a £6.3m pre-
tax loss for the six months to 31
July, compared to a profit of
£700,000 a year ago.
This was in line with forecasts, fol-
lowing three profit warnings from
the company over the last year.
Group revenues fell seven per cent
to £96m, while heavy promotions
ate into gross margins, which fell
Loss for French
Connection as
it unveils plan
BY MARION DAKERS by 2.3 percentage points to 47.7 per
cent.
Performance in the UK was even
worse, with revenues falling 10 per
cent to £67.1m.
French Connection’s North
American business posted a small
rise in profit to £1.3m, despite an
eight per cent drop in revenues and
the termination of a licencing deal
with Sears department stores.
Forward orders for winter 2012
and summer 2013 are around 10 per
cent behind a year ago.
Andrew Wade at Numis said the
firm’s plans “look to be a sensible
series of initiatives”, though any
improvement in sales will not feed
through until next year.
FAST-CHANGING fashion ranges and a drive to win new customers online and in emerging
markets helped Spain's Inditex, the world's biggest clothing retailer and owner of the Zara
brand, to beat first-half profit forecasts yesterday. First-half net profit was €944m (£760.5m).
ZARA OWNER IMPRESSES WITH STRONG GROWTH
French Connection Group PLC
19Sep 13Sep 14Sep 17Sep 18Sep
20
21
22
23
24
25
26
27 p
23.00
19Sep
THURSDAY 20 SEPTEMBER 2012
13
NEWS
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Banking’s better in black and white
Asos defies downturn to make
sales gains in UK and overseas
ASOS cheered investors with
accelerating sales growth in the
UK over the summer, helping boost
its shares 1.8 per cent yesterday.
The online fashion retailer
brushed off the malaise seen on
the British high street to report 15
per cent growth in UK takings to
£49.9m for the three months to 31
August.
This takes domestic sales to
£205.3m for the financial year –
giving an annual growth rate of 10
per cent.
BY MARION DAKERS
Asos said international sales
were also rising at a blistering pace,
though this expansion slowed
slightly in the final quarter. For the
year, international sales soared 64
per cent to £332.6m, aided by a
near-doubling of turnover in the
US.
Europe lagged behind, however,
with a relatively paltry 29 per cent
rise in annual sales to £117.7m.
“Our sales performance in those
markets where we have a website
continue to outperform,” said chief
executive Nick Robertson. “Despite
investing in our pricing, I’m
pleased to say that our retail gross
margin improved by 70 basis points
over the period.”
Panmure Gordon analyst Jean
Roche said Asos had been
“particularly impressive” for
keeping up growth in Britain amid
a slump across many bricks and
mortar retailers.
Asos now has more than 5m
active customers worldwide, a rise
of 35 per cent on a year ago.
Profits for the financial year are set
to be in line with expectations, and
the firm said it has “continued
confidence” in the coming year.
CASINO operator Rank Group said
yesterday that its takeover of Gala
had been held up by competition
concerns, with the formal
deadline for the deal’s agreement
passing at midnight yesterday.
The Office of Fair Trading (OFT)
referred the £205m sale to the
Competition Commission last
month over fears that the deal,
which would create the biggest
casino operator in the country,
would be anti-competitive.
Rank said yesterday that the
merger, agreed by the group’s
shareholders on 26 July, was now
not binding and the terms of the
Merger of casino giants held up
by OFT as formal deadline passes
BY JAMES TITCOMB deal may have to be amended to
bring it in line with the regulator’s
concerns. Gala’s sale would not
require additional shareholder
approval even with amendments.
“Rank and Gala Coral Group are
continuing to assist the
Competition Commission with its
inquiry and are continuing their
discussions in relation to
appropriate amendments to the
acquisition terms,” the casino
operator said yesterday.
The OFT is concerned that the
deal, which would give the
combined group ownership of 44
per cent of the UK’s casinos, would
reduce competition at a national
level and in several local areas.
STANDARD Life’s European private
equity trust yesterday reported a
small dip in value as the weak
euro exchange rate against
sterling led to an unrealised loss
of £8.7m on its portfolio value.
The FTSE listed fund of funds,
which is quoted in sterling but
invests in European assets, saw its
diluted net asset value (NAV) fall by
1.3 per cent for the quarter ending
June 2012, down to 229.3p from its
value of 232.3p at the end of March
2012.
NAV is calculated by dividing the
total value of all the securities in a
portfolio, minus any liabilities, by
the number of fund shares out-
standing.
Its portfolio, made up of 37 pri-
vate equity funds, saw unrealised
losses of £10.3m over the period,
with £8.7m of this – or 2.3 per cent
of NAV – coming from foreign
exchange losses driven by the three
per cent depreciation of the euro
against sterling since March.
However, the fund reported a
boost in distributions between 30
June and 18 September, led by its
€30m commitment to Equistone
Partners Europe Fund IV.
This builds on existing commit-
ments to Equistone’s other three
funds.
This took distributions from
£11.5m between March and June to
£31.1m between the end of June
and September.
The company mainly buys into
European funds investing in mid-to-
large sized buy-outs with enterprise
values from €200m to €2bn.
“New transactional activity
remained subdued in the European
private equity market in the second
quarter of 2012, due to the impact
of the difficult macro-economic
and political environment in
Europe and constraints on debt
availability for leveraged transac-
tions,” the company announced in
its statement.
Weak euro hits
Standard Life
private equity
BY MICHAEL BOW
PAT Ryan, founder and former
chief executive of insurance giant
Aon Corporation, is set to snap up
insurance provider Direct Group
from the private equity arm of
Lloyds Banking Group.
Ryan’s brokerage firm Ryan
Specialty Group will buy the
Doncaster-based firm from Lloyds’
private equity business LDC for an
undisclosed sum, following
regulatory approval.
Direct Group has a long
relationship with Lloyd’s of
London managing agency Jubilee,
which is owned by RSG, and will
give RSG additional scope in its
managing general agent and third
party administration capacity.
“LDC has been a key backer and
long-term supporter of our growth
strategy over the last five years,”
Direct Group chief executive
Derek Coles said.
“With additional debt funding
from the Lloyds Bank Wholesale
Banking & Markets team, we’ve
been able to capitalise on
acquisition opportunities quickly
to develop and broaden our
proposition, giving us a significant
advantage in the market.
“We’re excited to be starting the
next chapter of our growth as part
of RSG,” he added.
Direct Group, which was
acquired in a management buyout
backed by LDC in 2007, has grown
rapidly since the private equity
group’s involvement.
It has boosted its workforce
from 70 to 450 following the
acquisition of four companies –
Millenium, Evander Validation
Services, Circuit and Simple
Insurance – over the past five
years and grown revenues to
£20m.
LDC director Carl Wormald said
the management team had built
Direct Group into a business of
“significant scale and expertise”
since 2007.
Aon founder
buys insurer
from Lloyds
BY MICHAEL BOW
Bob Wigley is chairman of Hibu
THURSDAY 20 SEPTEMBER 2012
14
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Hibu warns its shares could be worthless
THE PUBLISHER of the Yellow Pages
said its restructuring programme
may dilute the price of its shares to
“little or no value”, as the firm
attempts to pay off its rising debts.
Hibu, which changed its name
from Yell earlier in the year, saw its
shares fall by more than a third
yesterday as it said it would miss its
full-year earnings forecasts. “While
no decision has yet been made,
certain options may result in a
BY JAMES TITCOMB
dilution of existing shareholders’
interests including some options
which may attribute little or no
value to the group’s ordinary
shares,” Hibu said.
The firm has built up debts of
£2.2bn – far more than the firm’s
£10.4m value based on its closing
share price yesterday – after a round
of acquisitions and a £1.4bn loss last
year. The firm has been slow to adapt
to the rise of internet listings and
the decline of its phone book
business. Hibu’s chief executive Mike
Pocock was bullish about the
company’s future yesterday, citing
“constructive discussions” with the
firm’s lenders.
“We are confident in the group’s
four-year strategy to transform Hibu
by capitalising on its unique position
in the small and medium-sized
enterprise community,” Pocock said.
“The group continues to progress
our new strategy, developing and
piloting new digital products.”
Panmure Gordon analyst Alex
Degroote said: “The shares are
probably totally worthless.”
Hibu PLC
19Sep 13Sep 14Sep 17Sep 18Sep
0.45
0.50
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0.60
0.65
0.70
0.75
0.80 p
0.44
19Sep
AVIVA Investors could close its
global listed real estate business
divisions in New York and London
as it restructures its real estate
business, it was revealed yesterday.
The firm, the asset management
division of insurance giant Aviva,
has written to advisers informing
them its current business has
Aviva Investors mulls overhaul
of listed real estate business
BY MICHAEL BOW “insufficient scale” to compete
globally. It is mulling refocusing
its efforts in Asia Pacific.
Aviva Investors investment sales
manager John Palmer said:
“Though this is subject to
consultation with affected
employees, it is likely that the
review will culminate in Aviva
Investors closing the dedicated
London and New York desks.”
LONDON property firm Workspace
Group yesterday announced plans
to tap the retail bond market for
between £50m and £75m with the
launch of a seven-year sterling
bond for retail investors.
The firm, promoted to the FTSE
250 last week, said it would offer the
bonds in a bid to help diversify its
FTSE 250 entrant Workspace
seeks up to £75m with bonds
BY MICHAEL BOW
funding streams.
The sterling denominated bonds
will pay a fixed rate of interest of six
per cent twice a year in April and
October and will mature in 2019.
Workspace chief executive Jamie
Hopkins said: “Workspace is seek-
ing to diversify its source of funding
and we believe that a retail bond
offers an opportunity for the com-
pany to achieve this.”
Jamie Hopkins is chief exec of Workspace
THERE’S no escape for the ultra-rich
following reports that their supery-
achts are the new favoured target
for pirates off the coast of Africa.
While most people’s main holiday
concern is remembering to pack
the suncream, maritime security
firm MAST says the number of
enquiries it has received from pri-
vate individuals has risen by 80 per
cent over the last six months.
“It’s clear that pirates around the
world are becoming emboldened by
successful attacks against commer-
cial ships off places like the west
coast of Africa, which in recent
months has seen a prolif-
eration of copy-cat
i nc i de nt s ,”
s a i d
Yacht owners
threatened by
rise of piracy
MAST chief executive Phil Cable.
His company is responding by
offering escorts through dangerous
areas, on-ship security guards and
the installation of anti-piracy meas-
ures.
There are around 4,500 supery-
achts (classed as any private boat
longer than 30ft) in the world and
many spend the whole year at sea,
transitioning between oceans so
their owners can always catch the
sun.
As a result this time of year is one
of the most risky, as many boats are
passing from Asian shores to Europe
and the Americas, via the pirate-
laden Gulf of Aden and Gulf of
Guinea.
THE SHARD may be one of the
capital’s top landmarks but the
decision to erect a 1,016ft tall
wall of glass in central London
has its downsides.
In certain weather conditions
the building acts as a giant mirror
for the sun and The Capitalist has
learned that as a result some
train drivers approaching London
Bridge station are almost blinded
by the reflection – as our picture
shows.
Dazzling Shard has inadvertent
effect of blinding train drivers
Southeastern – which run
commuter services on routes
from Kent and south east London
confirmed yesterday that they
have issued staff with a warning.
“The notice reminded drivers of
the rule to slow down when
visibility is poor and to remain
vigilant and prepared at all times
by using the sun visors and
wearing their work-issued
sunglasses while driving.”
Ray-Bans all round, please.
The driver’s view on a train approaching London Bridge station from the east
Got A Story? Email
thecapitalist@cityam.com
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THECAPITALIST
THURSDAY 20 SEPTEMBER 2012
Unearth those nosy parkas from
the back of the wardrobe, it’s time
to wrap up warm for this autumn’s Open
House London. Participants can this
weekend have a sneaky peek at the
government’s art collection at Queen’s
Yard, or an ogle at the art deco foyer of
Goldman Sachs’ office on Fleet Street.
Other buildings that will be accessible
include the Gherkin, the Bank of England
and Billingsgate Roman Baths (see
londonopenhouse.org for more).
Snoopers should also keep their eyes
peeled for hikers wearing pyjamas, who
are walking 20 miles through the city in
aid of cancer charity Maggie’s.
Intrepid night hikers will gain access to a
number of landmark buildings along the
route, in partnership with Open House.
If you’re still missing the Olympic
and Paralympic games, spare a
thought for the US athletes who are
stuck a long way from Stratford on the
other side of the Atlantic. They enjoyed
their trip to London so much that the
organising committee have paid to
erect a giant billboard over Cromwell
Road in West London that says “A big
thank you from Team USA”.
Throughout the summer US athletes
worked with local schoolchildren and
agreed to donate £100 to the charity
Kids Company for each medal won by a
US athlete. The team’s 104 total medals
resulted in a donation of £10,400,
which the athletes topped up with an
auction of signed merchandise and VIP
passes.
Superyacht owners can
have barbed-wire
installed on their boats
THE US housing market continued
to recover in August, with housing
starts, completions and new home
sales rising, data revealed
yesterday.
Building permits slipped one per
cent compared to July, Department
of Commerce data showed, but this
was the only negative piece of data
– and still left them nearly a
quarter up on August last year.
Backing up the positive picture,
housing starts grew 2.3 per cent
compared to July, putting them
29.1 per cent up on the year –
while housing completions edged
up 0.7 per cent between July and
August, meaning they were 11.7
per cent higher than in the same
month last year.
Home sales flew up at an
annualised rate of 7.8 per cent
between July and August,
according to data from the
National Association of Realtors
(NAR), also released yesterday.
“The housing market recovery is
becoming much more convincing,”
said NAR economist Lawrence Yun.
US market for
housing sees
solid recovery
BY BEN SOUTHWOOD
PRODUCTIVITY in the UK slumped
between 2007 and 2011, data from the
Office for National Statistics (ONS)
revealed yesterday.
The three per cent fall in output per
worker since the onset of the reces-
sion has driven an increasingly large
productivity wedge between the UK
and the rest of the G7 group of devel-
oped economies – the widest since
1995.
Output per hour was 15 percentage
points below the average for the G7
excluding the UK – and output per
worker was a full 20 percentage
points below the average of its major
competitors.
Though the UK’s productivity
growth lagged Japan, the US and
Canada, the ONS noted that it was
“similar to [growth in] other
European economies.”
Overall in 2011, all the G7 countries
except for Japan and Canada pro-
duced more than the UK with each
hour worked. Japan produced 10 per
cent less and Canada produced
UK labour falls
in productivity
BY BEN SOUTHWOOD
almost exactly the same.
Germany, France and the US each
produced around a quarter more than
the UK per hour of labour time, while
Italy produced four per cent more.
One explanation for poor productiv-
ity growth is the UK’s surprisingly pos-
itive labour market situation – the
least productive workers are usually
recruited last, meaning that average
productivity tends to go down as
employment figures rise.
But despite the recent uptick in job
figures, employment is still two per
cent lower than in 2007.
The three per cent fall in output per
worker over the four-year period is
deeper than any other G7 member
barring Italy.
In the Bank of England’s Monetary
Policy Committee minutes released
yesterday, the committee suggests that
firms are increasing staffing to boost
capacity – because investing in physi-
cal capital, such as machines, is costly
to reverse.
But this means each worker has less
equipment and cannot work as effec-
tively.
Fewer employees contribute tocompany pensions
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1
2
3
5
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4
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10 Millionsofworkers Privatesector
Publicsector
THURSDAY 20 SEPTEMBER 2012
16
NEWS
cityam.com
The new
jobs website
for London
professionals
C
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A
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UK PRODUCTIVITY IS LAGGING BEHIND G7 COMPETITORS
2001 2003 2005 2007
Lower than G7
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Fall in UK productivity since 2007
Productivity gap
compared to the
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Lower than G7
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UK OUTPUT PER HOUR (2011) UK OUTPUT PER WORKER (2011)
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110
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105
UK
G7 (excluding UK)
US
100
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G7
Webb admits pension reform
will hit employee pay packets
THE cost of rules that will force
firms to enrol their employees in
pensions schemes is likely to hit
wages or be passed on to consumers
through price hikes, Steve Webb
admitted today.
Firms have told the pensions sec-
retary that they will reduce pay and
other benefits, increase prices or
cut dividends to cover the costs of
contributing to employees’ pension
pots, Webb said.
He also confirmed that all work-
ers will have to pay into the scheme
for at least one month, regardless of
whether they then choose to opt
out – though they can claim their
BY BEN SOUTHWOOD
money back.
Webb described the policy, which
will automatically enrol some 11m
employees in corporate pensions
schemes, as “the biggest boost to
pensions for a century,” and “a truly
radical social change.”
The Department for Work and
Pensions (DWP) expects to enrol
800,000 people by the end of the
year, with around a third expected
to opt out, leaving roughly 500,000.
This came as new data revealed
that the number of people actively
contributing to occupational private
sector pension schemes continued
to slide last year, falling to 2.9m com-
pared to 6.5m in 1991 and 8.1m at
its peak in 1961. This is despite the
reclassification of large public sector
schemes such as the Post Office and a
large population rise over the period.
Webb also reaffirmed the DWP’s
commitment to a £140 per week flat
rate pension, despite reports David
Cameron will cancel the plans.
MILLIONS of interest-only mortgage
holders are set to be clobbered as
their loans expire over the next eight
years, property data firm Xit2
revealed today.
Some 1.3m interest-only
mortgages will expire by 2020, the
data shows, and for over 1m of these
– together worth about £116bn –
there is no final payment plan, Xit2
says. “If lenders fail to help these
borrowers find a repayment vehicle,
it will come back and give them a
nasty bite around 2020,” said Xit2
boss Mark Blackwell.
Since 2002, some 14 per cent of
home purchase loans have been
interest-only, and have no final
payment plan, the research says. By
2008 just before the financial crisis,
these made up around 30 per cent of
new loans.
Lenders hit by
loan maturity
BY BEN SOUTHWOOD
ENGINEERING and technology con-
glomerate Smiths Group yesterday
posted a seven per cent increase in
revenue for the year ended 31 July,
boosted by sales to oil and gas com-
panies.
Revenue for the FTSE 100 compa-
ny, which has five main divisions –
John Crane, Smiths Medical,
Smiths Detection, Smiths
Interconnect and Flex-Tek – came
in at £3.04bn.
The John Crane division, which is
the world’s largest manufacturer of
mechanical seals, grew strongly
over the period, reporting
increased revenue of nine per cent.
Pre-tax profit fell to £463m from
£497m last year, while the dividend
was upped five per cent to 38p a
share.
Emerging markets made up an
increasing part of the business over
the year, with revenues deriving
from developing economies up 14
per cent. Developing economies
such as China, Brazil and India
now account for 15 per cent of
BY CATHY ADAMS
group revenues.
Chief executive Philip Bowman
said yesterday that Smiths is
focused on increasing the amount
of money it invests in marketing in
emerging markets, in order to grow
revenues.
He added that pressure on UK gov-
ernment spending was likely to con-
tinue, which could weigh on the
business going forward.
However, Smiths said it expects
sales to keep growing although
spending cuts by governments
could hurt some of its businesses.
Shares closed up 1.15 per cent.
PZ Cussons blames downturn
for tough trading conditions
PZ CUSSONS, the maker of Imperial
Leather soap and Original Source
showergel, yesterday blamed the
global downturn for the
“challenging” trading conditions it
is experiencing in most markets.
It said this, combined with high
food and fuel prices, was
pressuring consumers’ disposable
income.
Despite this, the firm said its
performance over the past three
months remained in line with its
expectations, with “strong cash
BY KATIE HOPE
generation”.
“The board remains confident of
a return to profitable growth in the
current financial year,” it said in a
statement accompanying the
trading update.
In the UK, it said that the poor
summer weather had hit sales of
fake tan product St Tropez, but said
early sales of its new mother and
baby range “Cussons Mum and Me”
had been “encouraging.”
It also said that its new skin care
range, launched with ballet star
Darcey Bussell as the face of the
brand, had performed well.
Elsewhere in Europe, the
company behind Morning Fresh
washing up liquid and the
Sanctuary range of beauty
products, admitted that trading in
crisis-struck Greece “remained
difficult.”
It also said that sales in Nigeria —
its biggest market — had been hit
by the ongoing unrest in the North
of Africa. However, it said
opportunities in the region longer
term remained “exciting.”
In Asia, Indonesian sales
remained strong with further
growth in profit, it said.
TRADER Media
Group has
appointed Zillah
Byng-Maddick as
its interim chief,
following the
unexpected
departure of John
King. King has led
the Auto Trader
owner for five
years, but left the
firm yesterday.
Byng-Maddick
has been with the
group for three
years, prior to
which she was
finance chief at
the Fitness First
gym chain, as
well as working at
both Waterstones
and HMV.
TRADER MEDIA REPLACES CHIEF EXECUTIVE
Smiths Group PLC
19Sep 13Sep 14Sep 17Sep 18Sep
1,040
1,020
1,050
1,030
1,060
1,070
1,080
1,090 p
1,054.00
19Sep
THURSDAY 20 SEPTEMBER 2012
17
NEWS
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The company has a solid free cash flow enabling acquisitions, research
and development investment. But, the uncertain global environment and
squeeze on government spending, particularly in the US and the
Eurozone, is likely to offset these gains.
ANALYST VIEWS


The main drivers of the outperformance were John Crane, due to higher
volumes and better aftermarket pricing, and Smiths Medical, due to a strong
performance in emerging markets. Interconnect benefited from the
acquisition of PDI, although adverse mix shift impacted profitability.

The company remains confident on its ability to deliver
further operational improvements to finance investment in new product
development and in emerging markets presence, but ongoing macro
uncertainty leads to some caution on the 2013 financial year outlook.

WHAT DID YOU MAKE OF
SMITHS GROUP’S RESULTS?
Interviews by Cathy Adams
HELAL MIAH THE SHARE CENTRE

JONATHAN JACKSON KILLIK & CO

ANDRE KUKHNIN CREDIT SUISSE
Revenues from
oil and gas unit
help lift Smiths
APPLE and four major publishers
have reached an agreement with the
European Commission (EC) that will
allow retailers such as Amazon to
sell ebooks at a discount.
The EC said yesterday that the
Californian firm, along with four
out of the world’s five biggest
publishers – Hachette, Macmillan,
HarperCollins and Simon &
Schuster – had agreed to change how
ebooks are priced after being
threatened with antitrust fines.
The publishers switched from the
“wholesale” model of pricing –
which enables retailers to set their
own price – to the “agency” method,
in which the publishers set prices, in
2010 after negotiations with then
Apple chief executive Steve Jobs, who
did not want to compete with
Amazon on ebook pricing in Apple’s
iBookstore for the iPad.
“The Commission has concerns
that this switch may have been the
result of collusion between
competing publishers, with the help
of Apple, and may have been aimed
at raising retail prices of ebooks,” an
EC statement said. The four
publishers have now agreed not to
fix book prices over the next two
years, allowing Amazon and other
ebook sellers to reduce their prices.
The remaining major publisher
Penguin – owned by British firm
Pearson – has not reached an
agreement. The EC said: “Penguin
has not offered any commitments
and the investigation into their
conduct is ongoing.”
Penguin said: “We don’t feel we
have done anything wrong and we
will continue to cooperate fully and
openly with the Commission.
Publishers and
Apple end EU
ebook dispute
BY JAMES TITCOMB
HEINEKEN’S drawn-out acquisition
of the maker of Tiger Beer cleared a
major hurdle towards completion
yesterday, as the Dutch beer firm
announced a truce with its major
rival for the deal.
ThaiBev said it would vote in favour
of Heineken’s purchase of the 40 per
cent of Asia Pacific Breweries (APB)
owned by drinks firm Fraser & Neave
(F&N) when F&N shareholders
decide on the deal next week.
The Thai company, owned by bil-
lionaire Charoen Sirivadhanabhakdi,
owns a 31 per cent stake in F&N, and
had made plans to secure billions in
loans to support a takeover of the
rest of F&N and block Heineken’s bid.
However, ThaiBev yesterday said it
would approve the deal in exchange
for Heineken promising not to bid
for F&N shares, poach ThaiBev execu-
tives or to sell soft drinks in certain
Asian countries.
Shares in Heineken rose 6.35 per
cent yesterday, their biggest single
jump in three years, as it cleared the
most significant remaining barrier
to the purchase of APB. “Although we
cannot rule out any further stum-
bling blocks, this increasingly looks a
done deal for Heineken. A further
sweetener for the deal could be dis-
tribution rights for Heineken – or
even full control – of Thai Bev’s
Chang beer brand in Thailand,”
Espirito Santo’s Martin Dolan said.
Heineken’s bid
for APB moves
one step closer
BY JAMES TITCOMB
Heineken, which has seen its core
European beer market suffer in diffi-
cult economic conditions, sees the
APB deal as crucial to its plan to
expand in fast-growing new markets.
APB – which has seen its revenue
rise 50 per cent in the last two years –
owns the Tiger Beer brand, as well as
other beers popular in Asia.
The Dutch firm was forced to raise
its offer for F&N’s stake in APB from
5.3bn Singaporean dollars (£2.7bn) to
S$5.6bn a month ago as a rival bid
from ThaiBev loomed, valuing APB at
£6.8bn.
Heineken, the world’s third-largest
brewer, also agreed to purchase an 8.6
per cent stake in APB owned by
Charoen’s son in law, meaning that
as long as F&N’s sale goes through, it
will have a 95 per cent stake in APB
and will be able to launch a takeover
bid for the rest of the firm.
F&N shareholders, who have been
advised by the board to approve
Heineken’s bid, will vote next Friday.
German court dismisses two
VW law suits against Porsche
A GERMAN regional court has
stopped two investor lawsuits
against Porsche, sending a
discouraging signal to claimants
still seeking just over €4bn
(£3.2bn) in damages.
Presiding judge Stefan Puhle
at the court in Braunschweig
read out the decision yesterday
without giving reasons.
Some German and US
investors say that throughout
2008 Porsche camouflaged its
plans to acquire VW and instead
BY HARRY BANKS
secretly piled up its holding.
In March 2008, the sportscar
maker dismissed as “speculation”
talk that it intended to take over
the much-bigger VW, which builds
more cars in a week than Porsche
does in a year. Seven months later,
Porsche said it controlled 42.6 per
cent of VW’s common shares and
held options for another 31.5 per
cent of the stock it had not
disclosed previously.
Porsche’s statement caused VW
shares to surge to €1,005 within
days, briefly making the carmaker
the world’s most valuable
company as short-sellers raced to buy
back stock they had borrowed to bet
that VW shares would drop.
Swiss investment company My
Capital-MC and a German private
investor, champions of the two failed
lawsuits, had sought compensation
for €4.7m of losses from short-selling
VW shares.
Porsche spokesman Albrecht
Bamler welcomed the court’s
decision, saying the Stuttgart-based
company would fight the three
outstanding lawsuits “with all rigor”.
Hearings of the pending cases have
yet to be scheduled.
Heineken
19Sep 13Sep 14Sep 17Sep 18Sep
42
43
44
45
46 €
45.55
19Sep
RUPERT Murdoch faced the
prospect of his own shareholders
suing him yesterday after
disgruntled investors made their
case for holding Murdoch and his
son James responsible for the cost
to News Corp of the phone
hacking scandal.
A group of shareholders are
seeking to have their case against
Rupert and James heard in the US
courts, claiming the company’s
board treated the firm as a “family
candy jar” and protected
executives’ interests ahead of
News Corp’s. The company is
trying to have the case thrown out
before a trial begins.
A Delaware hearing yesterday
saw accusations from the
prosecution – representing a New
News Corp shareholders fight to
have case against Murdoch heard
BY JAMES TITCOMB
York bank and Illinois pension
fund – alleging that Rupert and
James Murdoch had been aware
that News of the World journalists
were hacking into phones and
bribing police officers.
The scandal has closed the News
of the World and scuppered News
Corp’s deal for BSkyB, two blows
for the company’s investors. News
Corp has since announced plans to
split into two to protect its
valuable 20th Century Fox
network from the problems
stemming from the British
newspapers.
“All of this harm occurred
because the board chose to protect
those close to Murdoch rather
than investigate the misconduct
when it learned about it,” the
shareholders said in June.
The hearing continues.
THURSDAY 20 SEPTEMBER 2012
18
NEWS
cityam.com
The shareholders say Rupert Murdoch and his son James knew about phone hacking
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SHAREHOLDER group Pirc has
advised investors to oppose the
re-election of Micro Focus
executive chairman Kevin
Loosemore at next
Wednesday’s annual meeting,
claiming his pay package is
excessive.
Pirc said yesterday that
Loosemore’s combined role
Micro Focus investors urged
to remove executive chair
BY JAMES TITCOMB
meant there was “no de-facto
division of responsibilities” at
Micro Focus, with him taking
“both the role of the chairman
and of a CEO”. Pirc added that
his severance package – one
and a half times his annual
salary – was a concern.
More than 10 per cent of
Micro Focus shareholders
opposed Loosemore’s election
at last year’s AGM.
CITY of London Investment could
face a shareholder rebellion over pay
at its general meeting next month
after proxy voting agency Pirc
yesterday told shareholders to vote
down its remuneration report.
Pirc says bonus awards to the chief
executive amounting to 333 per cent
is “excessive”. City of London said its
policy was “well understood”.
City of London
faces pay vote
BY MICHAEL BOW
19
THURSDAY 20 SEPTEMBER 2012
cityam.com
DASHBOARD CITY
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
LONDONREPORT
Surprise lift in
housing sales
boosts Wall St
U
S stocks rose yesterday as
investors dipped back into the
market after the recent
pullback from a rally that lifted
the S&P 500 to just shy of five-year
highs.
Housing stocks were among the
day’s leaders following stronger-than-
expected data on home sales. The
PHLX housing sector index jumped
2.2 per cent, led by a 4.3 per cent
advance in PulteGroup, the second-
largest US home builder, to $16.43.
The pace of US home resales rose
7.8 per cent in August, the fastest in
more than two years. Housing starts
also climbed, a hopeful sign that a
budding housing market recovery is
gaining traction.
The reports came as investors
looked for improving economic data
to help bolster a rally of 5.9 per cent
in the S&P 500 since the start of
August.
“The recent pullback in prices was
all about healthy profit-taking after
the big rally we had last week,” said
Neil Massa, senior US trader at MFC
Global Investment Management, in
Boston. “Now people are buying.”
The Dow Jones industrial average
rose 13.32 points, or 0.10 per cent, to
end at 13,577.96. The Standard &
Poor’s 500 Index added 1.73 points,
or 0.12 per cent, to finish at 1,461.05.
The Nasdaq Composite Index gained
4.82 points, or 0.15 per cent, to close
at 3,182.62.
Last week, the S&P 500 reached its
highest closing levels since
December 2007 following a decision
by the US Federal Reserve to launch a
new round of economic stimulus.
The market pulled back or ended flat
for two days, causing some investors
to get back into stocks that had lost
ground.
S
TRENGTH in banks and energy
stocks hauled Britain’s leading share
index higher yesterday as fresh
central bank stimulus moves, this
time from the Bank of Japan, whetted
investors’ appetite for riskier-perceived
assets.
The BoJ joined in recent action from the
US and Europe with bond purchases
designed to kick-start its economy as cen-
tral banks aim to halt the slowdown in
global growth and take the sting out of the
Eurozone debt crisis.
Gains by banks provided the biggest lift
for the blue chips, with global heavyweight
HSBC the best sector performer, ahead 1.7
per cent and alone adding over 7 points to
the index in volume of 120 pe rcent of its
90-day daily average. FTSE 100 volume was
at 85 percent of the daily average.
HSBC and other banks benefited from
price target hikes by BofA Merrill Lynch in a
review of European Banks which conclud-
ed that moves by central bank policymak-
ers have reduced the likelihood of negative
risk events for the sector.
The FTSE 100 closed up 20.32 points, or
0.4 per cent at 5,888.48 yesterday, holding
near six-month highs reached last Friday.
United Utilities was a top individual FTSE
100 gainer, up 2.8 per cent with traders cit-
ing rehashed bid talk ahead of a trading
update from the water firm due today.
Several papers said a Middle East sover-
eign wealth fund might be willing to pay
up to 950p-per-share for the firm.
Aviva was the worst blue chip performer,
off 3.3 per cent, having dropped on Tuesday
in reaction to two broker downgrades.
Surge in banking shares helps FTSE
to maintain its near 6-month high
BESTof theBROKERS
Ashmore Group PLC
13Sep 14Sep 17Sep 18Sep 19Sep
p
345
340
335
330
325
338.50
19 Sep
ASHMORE
Morgan Stanley has
started covering the bank
with an “overweight”
rating and a target price
of 390p. The analysts
think concerns over fund
performance and margin
pressure are already
priced in.
NEW YORK
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FTSE
13Sep 14Sep 17Sep 18Sep 19Sep
5,950
5,925
5,900
5,875
5,850
5,825
5,800
5,775
5,888.48
19 Sep
Kingfisher PLC
13Sep 14Sep 17Sep 18Sep 19Sep
p
280
278
276
274
272
273.80
19 Sep
KINGFISHER
Nomura has cut its rating
on the retail group from
“buy” to “neutral” and
lowered its target price
from 328p to 287p. The
broker is cautious in the
short-term due to weak
household spending
power.
The Sage Group PLC
13Sep 14Sep 17Sep 18Sep 19Sep
p
324
322
320
318
316
314
318.30
19 Sep
SAGE
Panmure Gordon has a
“sell” rating on the
software firm with a 267p
target. The broker thinks
reports of Sage selling its
US division are “tosh, of
course” but can see sense
in a plan to sell struggling
parts of the business.
Canaccord Genuity
The broker has appointed Peter O’Malley
as chief executive of Canaccord Genuity
Asia. He joins from Kenosis Capital
Partners, where he was chief executive
and founder. O’Malley has previously
worked at Deutsche Bank as a managing
director, and has also held senior roles at HSBC.
Mizuho International
The London-based securities and investment banking arm
of the Mizuho Financial Group has appointed Michiel de
Jong as its president and chief executive. He has over 25
years’ experience in finance and started his career at ABN
AMRO in 1986. De Jong is a previous member of RBS’s
executive committee of global banking and markets.
Association of Financial Markets in Europe
Eddy Wymeersch has been appointed non-executive
director and senior adviser to the European financial
markets representative body. He was previously chair of the
Committee of European Securities Regulators, and has also
served as chairman of the Brussels airport and as an
academic at the Ghent Law School.
Sarasin & Partners
The London-based division of the Swiss financial services
group has announced three senior appointments to its
private clients team. Charles Smyth-Osbourne joins from
GAM, where he previously served as head of private clients.
Duncan Gordon and James Hutton also join from GAM,
where they both had portfolio director responsibilities for
private, trust and charity clients.
Arbuthnot Latham
The private bank has appointed Kieran McDonnell to the
role of senior chartered financial planner. He joins from
Coutts, where he was senior financial planning specialist in
its international client group. McDonnell has also worked as
an account manager at Standard Life and has held roles at
Friends Provident.
iShares
BlackRock’s exchange traded funds (ETF) platform has
announced the appointment of Ursula Marchioni to its
Europe, Middle East and Africa investment strategy and
insights team. She joins from Credit Suisse, where she was
head of ETF sales strategy for its asset management
division. Marchioni has also held senior roles at Societe
Generale and KPMG Advisory.
WHO’S SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
in association with
M
ONDAY was touted by Mitt
Romney’s campaign as a
“re-launch” day, an
opportunity for the
candidate and his proxies to
engage voters with specifics about
what his presidency would entail. By
Tuesday morning, however, rather
than resembling a fresh start, it
looked like more of a relapse.
The decision by the website
Mother Jones to release a four-
month-old video of Romney
attracted so much traffic it almost
brought the site to a standstill. It
threatens doing the same to
Romney’s pursuit of the presidency.
Among a variety of ill-advised
comments came Romney’s remark
that “47 percent” of voters would
D
ESPITE the progress made in
cutting the deficit, this
country is facing one of its
most difficult economic
situations. But my
experience tells me that it is at these
moments that you can generate the
best results. It would be a wasted
opportunity if we didn’t use it to
make fundamental changes to the
way we govern, and bring the best of
the business world to the heart of
government.
As the new chief operating officer
for government, I want to do even
more to drive savings from
Whitehall. I also want to run govern-
ment in a more business-like fashion
and to – ultimately, and most impor-
tantly – make our contribution to
the UK’s recovery.
Since its creation in May 2010, the
Efficiency and Reform Group (with-
in the Cabinet Office) has gone a
good way towards delivering this. By
placing tough controls on spending
across government, the minister for
the Cabinet Office Francis Maude –
working closely with HM Treasury –
cityam.com/forum
The Efficiency and
Reform Group helped
Whitehall departments
save £5.5bn last year
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.

20
THURSDAY 20 SEPTEMBER 2012
STEPHEN KELLY
How I plan to apply the lessons of
business to running government
has beefed up the government’s cor-
porate centre.
Last year, the Efficiency and
Reform Group supported depart-
ments across Whitehall achieve
£5.5bn of savings, the equivalent of
a staggering £500 for every working
family in Britain. But Maude and I
agree that there is still much more
to be done. We are determined to
work closely alongside the govern-
ment departments. not least
because some are implementing the
most significant policy reforms for a
generation, while striving for
greater efficiency and reduced
spending.
It’s not just about driving efficien-
cies and savings – we are also seek-
ing to execute programmes to sup-
port UK growth across the country.
There are many examples: from
developing new commercial models
for public service delivery; driving
service delivery to “digital by
default”; intelligent partnerships
with the private sector; supporting
sectors like the social investment
market; an aspiration for small and
medium sized businesses (SMEs) to
achieve 25 per cent of the value of
government purchased goods and
services; creating more strategic sup-
plier relationships and encouraging
more diverse range of UK-based sup-
pliers; and seeking to make the com-
plex procurement process 40 per
cent faster, reducing the cost of bid-
ding for business.
The SME aspiration alone, if suc-
cessful, will represent savings of
approximately three quarters of one
per cent of the UK’s GDP of £1.6 tril-
lion. For example, a Leeds-based SME
recently won the single supplier
meetings and events contract for
central government – it expects to
deliver minimum savings of 10 per
cent (£12m) over the term of the con-
tract.
I have spent 25 years in the private
sector and was privileged to lead
highly successful public global com-
panies in the USA and UK. One of my
observations from this time is the
need for rigorous, relevant, useful
and informative management sys-
tems, and robust financial informa-
tion. Measurement enables focused
and coordinated work across com-
plex federated organisations. For
this reason, I am determined that
robust and pragmatic business plan-
ning and measurement become part
of our DNA in government.
But it is not only from the private
sector that I draw my experience. I
have spent some time working with
the Cabinet Office, being one of the
architects of a programme that gen-
erated first year savings of £800m. I
then led the successful divestment
of the civil service’s pension admin-
istration business, MyCSP – the first
“John Lewis-style” mutual to leave
central government. Both are a testa-
ment to the innovative approach the
government is taking.
We are committed to deliver on
our ambitious plans to make the
government work better, and to help
in a meaningful way to get Britain’s
finances back in shape. The journey
will be challenging. But ultimately,
our vision is for an efficient, nimble
civil service which is the envy of the
world; where citizens, taxpayers and
employees feel a real sense of pride,
achievement and part of the UK’s
future prosperity.
Stephen Kelly was this week appointed
chief operating officer for government
and head of the Efficiency and Reform
Group.
support Barack Obama in November
because they represent a group who
“are dependent upon government,
who believe that they are victims,
who believe that the government
has a responsibility to care for them,
who believe that they are entitled to
health care, to food, to housing, to
you name it.”
The line itself is almost a picture
of Romney straight out of
Democratic research. But it’s also the
crudeness and absolute absurdity of
drawing a direct correlation between
those who don’t pay income tax and
Obama’s poll rating that may well
deter independents and even
conservative voters. Although
Romney is hardly the first person to
cite this 47 per cent statistic, most
conservatives rationalise that it is
due to Obama’s failures, not the
financial shortcomings and hard
luck facing almost half of the
country, that people have had to
turn to the government for support.
Romney has refused to back down
from his remarks, but he has
nuanced them. When you’re caught
on video, however, this can be a
rather forlorn task.
Romney’s latest distraction comes
at a time when Obama’s post-
convention bounce has certainly
abated. But voters’ attitudes are
becoming much more amenable to a
second term. Despite the country’s
ongoing economic malaise, more
Americans are becoming optimistic
about the future, perhaps seeing any
slight improvement as something far
more substantial in relative terms.
Romney still leads with
independents, but Obama is now
moving ahead with nearly every
income demographic. Ironically,
Romney enjoys strong support in
households earning $24,000 (£14,173)
or less. The Republican may have
disparaged more than just Obama
supporters.
In 1964, many of the attacks
against Republican Barry Goldwater
emanated from his sheer inability to
tone down his rhetoric, particularly
when he claimed the “country
would be better off if we could just
saw off the Eastern Seaboard and let
it float out to sea.” Democrats
claimed that only through re-
electing Lyndon Johnson could the
country have a President
representative of all Americans.
We’ve seen this play out before.
Romney has just 47 precious days to
convey to those 47 per cent of voters
why they are part of his solution and
not the problem.
Ewan Watt is a Washington, DC-based
consultant. Follow him on Twitter
@ewancwatt
THE WHITE
HOUSE RACE
EWAN WATT
Romney’s absurd 47 per cent gaffe risks alienating his own core voters
In association with
21
THURSDAY 20 SEPTEMBER 2012
The Forum is open for you to take part. Got a sharp comment on
one of today’s columns? Do you have another subject you want
to share your opinion on? We want to hear your views.
Email theforum@cityam.com or comment at cityam.com/forum
National defence
[Re: Could a BAE-EADS merger prove a
danger to national interests?, yesterday]
This merger raises questions that have yet to
receive adequate answers. There are obvious
implications to losing the strategic totem
that has been BAE: its work is closely related
to UK national defence, and we should not
risk it without careful assurances. BAE also
employs 13,000 employees directly, and its
supply chain numbers more than 140,000
jobs. We must be sure that these skills aren’t
lost. Finally, developments in Europe risk
compromising our interests: if federal
integration is progressed, then what will
happen if we successfully negotiate an
alternative arrangement with the EU?
BrianBinley, ConservativeMPfor Northampton
South
BAE has invested heavily in the US market
over the years, but left itself without an
equivalent presence in the European market.
It has heard Barack Obama’s plans to re-
balance US defence towards the Pacific
Ocean and away from its Atlantic seaboard.
The implications are clear: Europe will have
to do more for its own defence and there will
have to be far more European defence
cooperation in order to achieve this. BAE
must therefore up its game in Europe and its
cooperation with other players in the
market. So this move makes a lot of sense,
and should strengthen the company and the
UK’s aerospace business. In the long term it
should also be good for jobs.
NickHarveyis Liberal Democrat MPfor North
Devon
TOP TWEETS
Vince Cable is set to be the sole adjudicator
on the BAE-EADS merger. This is somehow
familiar.
@LucyRigby
The Bank of Japan has decided to restart
money printing. 20 years into its slump, it’s
still not working.
@S_Mikhailovich
So the Bank of England is considering
another injection of QE. Watch inflation rise
and annuity rates fall.
@accountant15
Greece is planning to sell some of its prime
overseas property – including the Greek
consul’s home in Holland Park.
@OpenEurope
Should the Bank of England be able to adjust
bank capital ratios to match economic health?
YES
There are two main reasons why granting the Bank of England the
power to impose capital ratios may prove helpful – macroeconomic
and prudential. The essential macroeconomic aim of monetary
policy should be to maintain a smooth and steady growth of broad
money. It’s difficult to do this with the traditional tools of monetary
policy – the bank rate and gilt-edged funding. Furthermore, both
tools are now exhausted, hence the need for an additional monetary
tool to impose restrictions on commercial bank balance sheets. The
prudential reason is that banks with inadequate capital resources go
bust if they cannot cover the rise in bad debts that comes not only
with recession, but also in the early stages of recovery when cash
flows come under most pressure. There is an important caveat,
however. The heavy-handed imposition of capital ratios will lead to
a renewed downturn.
David B Smith is a visiting professor at Derby Business School.
David B Smith
NO
Philip Booth
Governments have a high opinion of their ability to steer and direct
the economy as they would like. Unfortunately, this view ignores the
hard realities. The main focus of prudential policy – on which there
has been progress – should be to ensure that insolvent banks fail
safely. We should not be binding the financial system up with so
much regulation that banks never fail. Additionally, monetary policy
should be conducted in such a way that generalised asset bubbles
are not created in the first place. Furthermore, prescriptive,
government-imposed accounting rules should not encourage banks
to inflate profits when times are good. Beyond that, what evidence
is there that government regulators can foresee bubbles and prevent
them through regulation of the banking system? Governments
would do best if they stuck to the doctrine of “first, do no harm”.
Philip Booth is programme director at the Institute of Economic
Affairs and professor of risk management at Cass Business School.
RAPIDresponses
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HUGH YOUNG
TEN GOLDEN RULES
OF INVESTING
Rule No. Remember that
benchmarks are measuring devices
not portfolio construction tools
7
you should learn to embrace the
feeling as a sign you’re on the
right track. To put it in the
simplest terms, to beat the
benchmark you must deviate
from it.
Hugh Young is managing director at
Aberdeen Asset Management Asia.
TOMORROW: Rule No. 8 — Take advantage of irrational behaviour
T
HE worst reason in the
world to buy something is
because somebody else
did. This is essentially
what you would be doing
if you allowed your portfolio to
mimic the benchmark index. A
company’s weighting in the index
tells you only what has happened
in the past, not what will happen
in the future. Furthermore, there
is a lot of rubbish in most
benchmarks that with a little
hard work can be avoided.
Successful investing requires
thinking differently. This may at
times feel uncomfortable but
Y
OU’RE spending thousands of
pounds on an MBA course (a
one year programme at Said
Business School costs upwards
of £41,000, plus an estimated £13,250
in expenses), you’re losing one or
maybe two years of wages, and you’re
interrupting your career to take a
business degree. It’s a natural
impulse to think in mercenary terms
– by how much will your MBA
increase your earnings, how likely is a
promotion after graduation?
Many business school rankings
include calculations of these ques-
tions in their metrics. They can be use-
ful – you’re provided with a concrete
historical picture of how much previ-
ous graduates earn three years later,
how this compares to their prior
salary, and the percentage who quick-
ly get employment.
But the measures admit their own
imperfection. Subjective impressions,
like whether the graduate felt that
they achieved their career aims,
crowd alongside their more objective
counterparts. So, if the money and
MBA equation isn’t purely mathemat-
ical, how should you choose the MBA
course ideal to your career plans?
WHAT EMPLOYERS WANT
London Business School (LBS) routine-
ly emerges as the most successful UK
MBA programme in monetary terms.
At a cost of £57,500 for a 15-21 month
course, its 2011 employment report
revealed that 93 per cent of graduates
had accepted a job offer three months
after graduation at an average salary
of $121,206 (£74,747). This is just a
snapshot. Three years after gradua-
tion, LBS MBAs can expect an average
of $154,783 per annum.
Fiona Sandford is director of career
services at LBS. Despite her school’s
success, she says that students should-
n’t be “blinded by the money.” It’s
important to think more broadly, to
probe why some schools do better, and
to understand how these schools
might fit into your own career plans.
Sandford credits LBS’s success to two
particular sources – a diverse faculty
and student body, and the right cur-
riculum balance between research
and practical work.” Recruiters are
willing to pay well for graduates who
are “instantly comfortable in multicul-
tural teams”, and who are familiar
with “advances in business research.”
She hits upon an important point.
Higher salaries don’t grow out the
business school themselves but from
where their graduates are able to get
jobs, and how that school’s ethos fits
with the demands of particular types
of employer.
And some MBA students won’t neces-
sarily be aiming for immediate salary
growth. Sandford suggests a range of
alternatives. “Are you looking to move
sector, to gain greater autonomy at
work, or for a better work-life balance.”
An MBA can help with these. And they
might be better reasons to choose a
business degree than higher pay.
Brian Buckley, executive pro-
grammes director at the Greenwich
22
cityam.com
THURSDAY 20 SEPTEMBER 2012
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C
I
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A
.
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Money doesn’t always make an MBA
Don’t necessarily judge a course on salary growth, says Tom Welsh
BUSINESSEDUCATION
School of Management agrees. “The
MBA salary metric was far more useful
prior to the global economic crisis,” he
says. The era of graduates from top tier
business schools naming their price
has ended. “It’s a buyer’s market.”
AN ECLECTIC MIX
The salary measure can also narrow
your understanding of what an MBA
can offer. Business schools have differ-
ent strategies and cultures – they are
seeking to cater to a wide range of busi-
ness professionals. Greenwich, for
example, is keen on “vocationally-
focused management education”,
according to Buckley. And this leads it
to offer “an eclectic mix of specialist
pathways.” If you’re a UK-based health
management professional, for exam-
ple, it may not be appropriate to take a
globally-focused MBA with a history of
providing employees to Bain Capital.
Money matters, of course. There’s lit-
tle sense in investing in yourself if
there’s no chance of seeing a return.
But this truism can cloud a decision as
much as illuminate. If salary growth is
an important factor for you, consider
carefully where your MBA will leave
you once you’ve graduated.
For Sandford, this means taking a
hard look at your potential. “Many
MBAs think the best way to get the
best job is to put on a mask during the
recruitment process.” You may end up
making a lot of money for a short peri-
od but, if you haven’t chosen your MBA
correctly, you’ll likely find that your
career progression ends there. Cash doesn’t grow on trees for MBA graduates
LONDON FASHION WEEK: The Trend Report
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We still have Milan and Paris to go but these are the top four styles that dominated the capital’s shows
After last season’s
preoccupation
with dark glamour,
the neutral colours
making the rounds
this season have
been quite the
palette cleanser.
But the collections
haven’t been
completely
without colour.
Even John Rocha,
who doesn’t tend
to steer too far
from
monochromatic
hues, introduced
colour for the first
time on a series of
neon dresses.
If you bought into
the peplum trend
that dominated
the runways this
time last year,
you’re in luck.
Designers turned
to the shape in a
big way this week.
House of Holland
designer Henry
Holland
incorporated it
onto the hemlines
of tops, while
Michael van der
Ham and Peter
Pilotto offered it
on statement
printed knee
length dresses.
THURSDAY 20 SEPTEMBER 2012
cityam.com
23
LIFE&STYLE
WORDS BY
NAOMI MDUDU
FASHION
AGENT PROVOCATEUR | ARTI SAN FI NE ART | BACHET | BOODLES
BULGARI | CHURCH’S | CROCKETT & JONES | DE BEERS | GUCCI | GRAND CAFÉ
HARRYS OF LONDON | HERMÈS | JO MALONE LONDON | KIEHL’S SINCE 1851
KOJIS | LOEWE | LORO PIANA | LULU GUINNESS | L’OCCITANE | MOLTON BROWN
MONTBLANC | OMEGA | PAUL A. YOUNG FINE CHOCOLATES | PAUL SMI TH
PENHALI GON’ S | PRETTY BALLERI NAS | ROYAL EXCHANGE JEWELLERS
SAGE BROWN FINE LEATHER | SEARLE & CO | SAUTERELLE RESTAURANT
SMOKER’ S PARADI SE | SMYTHSON | TATEOSSI AN | THEO FENNELL
T I FFANY & CO. | VI L EBREQUI N | WATCHES OF SWI T ZERL AND
ROYAL EXCHANGE, BANK, CITY OF LONDON, EC3V 3LR
STORE TRADING HOURS 10AM - 6PM RESTAURANTS & BARS 8AM - 11PM
FOR FURTHER I NFORMATI ON VI SI T THEROYALEXCHANGE. COM
Penhaligon's, Orange
blossom
eau
de
toilette
1
0
0
m
l
Neon Embellishment Peplum Sports Luxe
Embellishment
was everywhere
last season and it
is shaping up to be
a trend that is here
to stay.
Eveningwear was
where designers
were really playful
and the options
ranged from subtle
details to
elaborate
decoration on
gowns. The fact
that fashion
favourite
Christopher Kane
tapped into it, too,
is a sure sign of its
staying power.
Still on a high from
the Olympics, the
shows were awash
with sports-
inspired pieces.
Rather than going
down a literal
route, the latest
offerings won’t
look out of place
outside the gym.
Antonio Berardi
added a
sportswear twist
to modern dresses
and tailoring that
came with
performance
technology
incorporated into
the fabrics.
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THURSDAY 20 SEPTEMBER 2012
cityam.com
24 LIFE&STYLE TECHNOLOGY
A
pple’s new phone has already
become the single most
coveted thing in the history of
human existence, ever,
storming past the Holy Grail, basic
sustenance, love and even existence
itself (posing some difficult
ontological questions that people are
too distracted by the iPhone 5 to
properly consider).
Ahead of the official launch
tomorrow, Apple has begun to roll
out its new operating system, iOS 6,
which, in the geek community, has
sparked another round of
skeuomorph-bashing. What do you
mean you don’t know what a
skeuomorph is? You know how the
bookstore on your iPhone looks a
bit like a bookcase? That’s a
skeuomorph. And the way the
dictaphone app looks like an old-
fashioned microphone? That’s a
GEEK
SPEAK
STEVE DINNEEN
skeuomorph too. The word literally
means an object that has
superseded something but retains
imitations of its predecessor’s
design. The concept can be traced
back to prehistoric times, where
early pottery bore imitation metal
rivet marks on the handles, as
earlier pots would have had.
Today, though, skeuomorphs are
usually found in user interfaces,
and Apple is a massive fan of them.
It goes to incredible lengths to
introduce them into its products.
Its leather-effect calendar, which
you can “turn” pages on with a
swipe of your finger, even bears a
faint impression on the rear-side of
the “page”, as if you were holding
an actual piece of paper up to the
light.
The idea is that people are more
likely to relate to a new product if it
reminds them of something they
already know – and that they will
be more able to grasp new concepts
because they feel at home with the
interface. It certainly seems to work
for Apple, which has managed to
persuade even committed
technophobes like my mother that
their products won’t, in fact,
explode in their faces if they press
the wrong button, like a deadly
game of Operation. You see, my
mother, to the best of my
knowledge, has never seen a
bookshelf explode. Or a calendar.
These are “safe” items, unlike
computers, which are “dangerous,”
“terrifying” and “definitely not to
be trusted”.
Geeks, though, hate
skeuomorphs. They say they hold
back user interfaces. Computers are
more efficient than bookshelves,
unless they are forced to adhere to
the same limitations for the sake of
design flourishes.
I disagree. I’m with my mother
here – I love skeuomorphs. But why
stop there? Apple could follow the
concept to its logical conclusion,
imitating the minutia of our lives.
When I open iBooks, it could look
like my actual bookcase, complete
with its embarrassingly limited
selection of paperbacks and several
containers of half eaten takeaway,
which I could “swipe” with my
finger, covering the inside of the
screen in a permanent greasy
smear.
Before I access the Maps app, I
could be forced to delicately
“unfold” it with a without tearing
the pages and, when I’m finished,
fail miserably to fold it back
correctly, thereby permanently
locking me out of the app and
leaving a screwed up ball of paper
on my home screen. It could charge
60p to send every message, which
may or may not arrive within a
period of three weeks. The next
iPhone could be shaped like a giant
old rotary dial phone that has to be
plugged into the wall to make it
work. Then it would be just like real
life. How’s that for progress?
A defence of the skeuomorph, as seen in iOS 6
STARSof the SCREEN
Get cinema-quality visuals in your living room, by Steve Dinneen
T
here is a pleasing symmetry to
the renewed popularity of the
home projector. Back in the
early days of film, all the way
back in the 1890s, the
cinematograph was the only way
most people could experience the
thrill of the moving picture. Devices
like the Lumière Brothers
cinematograph – a film camera and
projector in one – saw the pioneers
of film begin their tentative
experiments with editing and
continuity, developing, through
trial and error, practices still used in
Hollywood today.
Now, the projector is going
through a second golden age, with
sales rocketing as people demand
more of their home cinema experi-
ence. Growth in projector sales now
comfortably surpasses the internet-
connected TV segment, with incredi-
bly sophisticated devices able to
project in pin-point detail and glori-
ous 3D.
But, more than that, there is some-
thing that makes the projector
greater than the sum of its parts. It’s
a more sociable, shared experience
than watching TV.
Here are some great ways to liven
up your living room – and enjoy a lit-
tle slice of cinema history.
JVC DLA-X7
From£6249.99
This projector is one of the finest
on the market, providing
outstandingly crisp 2D images
and impressive 3D. The colours
are vivid and the set-up and
calibration is easy.
Optoma ThemeScene HD33
From£1,350
If you’re an AV connoisseur with a
(relatively) small budget, this is
an excellent option, combining
remarkable full HD 3D and great
audio quality. The case design,
though, is a little ugly.
Panasonic PT-AT5000E
From£2,599.90
A great “out-of-the-box” system
with remarkable contrast and
colours, for a not entirely
unreasonable price. It is held back
by frustrating calibration options
and lens control.
Sony VPL-VW90ES 3D
From£4,999
Sony’s TV unit hasn’t had a great
few years but its projectors are
hard to knock. It has great visuals,
deep 3D and little “cross-talk”
interference, which can damage
picture quality.
Sim2 C3X Lumis Host
From£30,995
This is a cinema system for a
home where money is no object.
Everything in here is fine-tuned to
projector perfection. If you need a
perfect image and have the price
of a car spare, this is for you.
26
THURSDAY 20 SEPTEMBER 2012
cityam.com
TV LISTINGS
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BBC1
SKY SPORTS 1
6.30pmRingside 7.30pmPremier
League World 8pmThe Rugby
Club 9pmRingside 10pmThe
Footballers’ Football Show
11.30pmPremier League World
12amRingside 1amLive NFL 5am
IAAF Athletix 5.30am-6am
Premier League World
SKY SPORTS 2
6pmLive PGA Tour Golf 11pm
Ladies European Tour Golf 12am
ICC World Twenty20 Cricket 2am
Racemax 3amThe Rugby Club
4am-5amRingside
SKY SPORTS 3
7pmRacemax 8pmICC World
Twenty20 Cricket 10pmWWE:
Late Night – Raw12amWWE:
NXT 1am-2.30amThe
Footballers’ Football Show
BRITISH EUROSPORT
8.30pmMotoGP 10pmWorld
Superbikes 11pmBritish
Superbikes 11.30pm-12.30am
Poker
ESPN
5.30pmLive UEFA Europa League
Football 8pmLive UEFA Europa
League Football 10.15pmDream
On – Wembley FC 11.15pmESPN
FC Press Pass 11.45pmFrench
Ligue 1 Preview12.15amESPN
Kicks: Brasileirao 12.30amESPN
Kicks: MLS 1amLive Major
League Soccer 3amGoal!
Bundesliga Preview3.30am
World Series of Poker
5.30am-6amFIBA Basketball
SKY LIVING
7pmCriminal Minds 8pmTeen
Wolf 9pmSurvival of the Half Ton
Teen 10pmCriminal Minds 11pm
Grey’s Anatomy 12amBones 1am
Medium1.50amSupernatural
2.40amMaury 3.30amBones
4.20amAmerica’s Next Top
Model 5.10am-6amPassport
Patrol
BBC THREE
7pmThe World’s Strictest Parents
8pmDon’t Tell the Bride: A tattoo
artist plans his wedding. 9pm
Russell Howard: Right Here Right
Now10pmWilfred 10.20pm
Great Movie Mistakes 2: The
Sequel 10.30pmEastEnders
11pmFamily Guy 11.45pm
American Dad! 12.30amRussell
Howard: Right Here Right Now
1.30amWilfred 1.50amDon’t Tell
the Bride 2.50amThe Revolution
Will Be Televised 3.20am-3.50am
Bad Education
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmThe Big Bang
Theory 8.30pmHow I Met Your
Mother 9pm2 Broke Girls
9.30pmNew Girl 10pmHollyoaks
Later 11pmFranklin & Bash 12am
The Big Bang Theory 1am
Hollyoaks Later 2amScrubs
2.25amHow I Met Your Mother
2.50amDesperate Housewives
3.30amPete Versus Life 4am
90210 4.40amThe War at Home
5am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmSwamp People 9pm
Ice Road Truckers 10pmStorage
Wars 10.30pmStorage Wars:
Texas 11pmStorage Wars
11.30pmPawn Stars 12am
American Pickers 1amIce Road
Truckers 2amStorage Wars
2.30amStorage Wars: Texas 3am
Swamp People 4amThe Last
Days of World War Two 5am
Pawn Stars 5.30am-6am
American Restoration
DISCOVERY
7pmGold Divers 8pmWheeler
Dealers 9pmStephen Hawking’s
Grand Design 10pmLast Day of
the Dinosaurs 11.30pmWeird
Connections 12amGold Rush 1am
Stephen Hawking’s Grand Design
2amSons of Guns 3amGold Rush
3.50amStephen Hawking’s Grand
Design 4.40amDiscovery Atlas:
Italy Revealed 5.30am-6am
Meerkat Manor
DISCOVERY HOME &
HEALTH
7pmDr Oz 8pmI Didn’t Know I
Was Pregnant 9pmThe Man with
the 200lb Tumour 10pm
Embarrassing Bodies 11pm
Hoarding: Buried Alive 12amThe
Man with the 200lb Tumour 1am
Embarrassing Bodies 2am
Hoarding: Buried Alive 3amI
Didn’t Know I Was Pregnant 4am
First Days 5am-6amA Baby
Story
SKY1
8pmSinbad 9pmMoone Boy
10pmTrollied 10.30pmAn Idiot
Abroad 11.30pmA League of
Their Own 12amRoad Wars 2am
Cop Squad 3.50amBrit Cops:
Frontline Crime UK 5.30am-6am
Airline
BBC2 ITV1 CHANNEL4 CHANNEL5
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&
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6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmWaterloo Road
9pmCHOICE Good Cop
10pmBBC News
10.25pmRegional News
10.35pmRussell Brand: From
Addiction to Recovery
11.35pmFILMTaken in Broad
Daylight. 2009. 12.55amHoliday
Weatherview1amSign Zone: Price
Tag Wars: Panorama 1.30amSign
Zone: Countryfile 2.30amSign
Zone: Rip Off Britain 3.15amSign
Zone: Celebrity MasterChef
3.45am-6amBBC News
6pmEggheads
6.30pmCelebrity MasterChef
7pmAntiques Road Trip: Philip
Serrell and Jonathan Pratt visit
Cumbria.
8pmWartime Farm
9pmThe Choir: Sing While You
Work
10pmMock the Week
10.30pmNewsnight: Weather
11.20pmThe Rob Brydon
Show
11.50pmJames May’s Things
You Need to Know
12.20amBBC News
3.45amClose 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmWho Does Your
Daughter Look Up To?: Tonight
8pmEmmerdale
8.30pmThe Corrie Years
9pmCHOICE The Bletchley
Circle
10pmITV News at Ten
10.30pmLondon News
10.35pmThe Jonathan Ross Show
11.35pmPoms in Paradise
12.05amJackpot247; ITV News
Headlines 2.35amWho Does Your
Daughter Look Up To?: Tonight 3am
ITV Nightscreen 4.35am-5.30am
The Jeremy Kyle Show
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmLocation, Location,
Location
9pmThe Audience 10pmOne Born:
Plus-Size Mums 11.05pmRandom
Acts 11.10pm999: What’s Your
Emergency? 12.10amFatal Flight
447: Chaos in the Cockpit 1.10am
Lost Children 2.05amA Tale of Two
Chinas 2.30amSecrets of
Poundland: Channel 4 Dispatches
3amYou Deserve This House
3.55amDeal or No Deal 4.50am
Countdown 5.35am-6amBaking
Mad with Eric Lanlard
6pmHome and Away
6.30pm5 News at 6.30
7pmFrontline Police: Bad
weather causes traffic chaos in
Southend-on-Sea. Last in the
series; 5 News Update
8pmHeroes of the Skies: 5
News at 9
9pmCHOICE Making Faces
10pmTrue CSI
11pmDallas
11.55pmInside Hollywood
12amSuperCasino
4amHouseBusters 4.25amHouse
Doctor 4.50amMichaela’s Wild
Challenge 5.10amWildlife SOS
5.35am-6amWildlife SOS
T
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
GOOD COP
BBC1, 9PM
Costello and Sarge grow suspicious of
Sav’s quest to get Jonjo arrested for
Andy’s murder. But the frustrated cop
has other things on his mind.
THE BLETCHLEY CIRCLE
ITV1, 9PM
Susan and her allies attempt to
confront the murderer, but the
pursuit places them all in grave
danger. Last in the series.
MAKING FACES
CHANNEL5, 9PM
The work of facial surgeons at a
hospital in Birmingham, as they try to
rebuild the faces of patients affected
by injuries and diseases.
TVPICK
THURSDAY 20 SEPTEMBER 2012
27
GAMES
cityam.com
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits 1-9 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 find 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 ISSUE’S
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
10 13 8
45
9 29
12 16
32 11
11 17
13 34
15 4
27 16
45
8 17 7
8
12
6
7
43
23
39
17
24
6
3
10
15
30
35
21
21
37
5
24
10
3
ACROSS
1 Vegetable used as a
substitute for spinach (5)
4 Walt Disney film of 1941 (5)
8 Eject in large quantities (4)
9 Study for an
examination (6)
10 Singing couple (3)
11 Organ of smell (4)
13 At the summit of (4)
14 Engage in boisterous,
drunken merrymaking (7)
15 Frozen rain (4)
16 Precipitation of
ice crystals (4)
17 Wildebeest (3)
18 Upper house of the
US Congress (6)
19 At a great distance (4)
21 Emit an odour (5)
22 Harmless tropical
house-lizard (5)
DOWN
2 Fruit of a rose
plant (3)
3 Harsh or unfair
treatment
(coll) (3,4)
5 Make damp (7)
6 Subdue (9)
7 Continuing
for more time
than usual (9)
8 Process of
producing
a chemical
compound from
others (9)
12 Study of
the physical
world (7)
13 Satisfy
(thirst) (7)
20 Enquire (3)
V
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S C O O P T E A C H
T A A H R O
E U R A S I A C R U
E S N H S
D R A K E K N I F E
D V
D U M P S B R E W S
O I A R L
W A R G R A N D M A
N E G S A T
S T R A Y H E D G E
4 9 8 7 6 9 8 6
3 8 7 5 9 1 4 6 2
2 4 1 1 2 3 5
1 6 5 8 3 6 7 9
3 1 5 7 9 8
2 1 5 1 2 7
1 5 7 9 4 5
3 7 9 8 6 1 9 6
2 6 3 1 9 8 3
9 4 8 5 2 3 6 7 1
7 3 1 4 1 3 6 2
4
4
4
4
4
4
4
4
4
The nine-letter word was
HEINOUSLY
IN BRIEF
Robson reaches quarter-finals
nTENNIS: British No1 Laura Robson
yesterday reached the last eight of the
Guangzhou Open by beating second
seed Zheng Jie 6-3, 6-3.
Mitchell targets superstar status
nBOXING: Kevin Mitchell believes he
can become a superstar by defeating
WBO lightweight champion Ricky
Burns on Saturday night. “I’ll become
a household name overnight,” he said.
“I’ll become a superstar.”
Murphy and Benjamin ruled out
nRUGBY UNION: Leicester’s Geordan
Murphy and Miles Benjamin are
respectively injured for three to four
weeks and up to four months.
MANCHESTER United manager Sir
Alex Ferguson believes last night’s
victory over Galatasaray will be cru-
cial if they are to avoid a repeat of
last year’s elimination at the
Champions League group stage.
Michael Carrick’s early goal failed
to settle United’s apparent nerves but
regardless proved enough to secure
victory on an occasion when
Galatasaray’s greater confidence
exposed the Premier League side’s
defensive vulnerabilities.
“In the first half we gave the ball
away too often and they counter-
attacked really well,” Ferguson said.
“In the second half, though, we were
much more solid at the back, and all
the chances fell to us.
“It was a good opening game, they
were very confident in possession,
and missing chances in the second
Ferguson happy
after United
start with a win
Gritty win over Pakistan wraps
up England’s T20 preparations
SPINNER Danny Briggs insists
England will begin their World
Twenty20 title defence brimming
with confidence after he starred in
the champions’ third victory in
eight days yesterday.
Briggs took 3-15 as England
limited Pakistan to 96-9 in a 15-run
win in the Sri Lankan capital
Colombo, where they are set to meet
Afghanistan in their tournament
opener tomorrow.
The final warm-up result is a
further boost to Stuart Broad’s men,
following Monday’s nine-run
triumph over Australia and last
week’s 28-run thwarting of South
Africa at Edgbaston.
“It came out really nicely, which is
pleasing and really good in our
preparation. It’s good to go into a
tournament with confidence, and I
hope that can carry on,” said the
slow left-armer. “Some of the lads
struggled towards the end – it was
hard to manoeuvre the ball around –
but we knew we were always in the
game, with any score on the board,
and the way we bowled in the
second half showed that.”
Luke Wright’s 38 off 36 balls was
the highlight of England’s meagre
111 all out, after they chose to bat
first on a surface more favourable to
bowlers. Pakistan spinner Saeed
Ajmal was chief tormentor, taking 4-
14 and spearheading England’s loss
of the last five wickets in eight balls.
Briggs and Samit Patel (1-21) put
early dents in Pakistan’s attempts to
chase their target, with Jade
Dernbach (3-14) and Broad (2-12)
completing the job.
Manchester United midfielder Michael Carrick scored his side’s winning goal last night
LONDON 2012 Olympic silver medal-
winning cyclist Lizzie Armitstead has
been forced to withdraw from
Britain’s team for Saturday’s road
race at the World Championships
in Holland.
Armitstead had been poised to
lead the six-person squad, but her
illness means Nicole Cooke is
expected to be the focal point of a
team with one competitor fewer
than their rivals.
The 23-year-old’s absence is
another blow in a week that has
brought British cycling down to
earth slightly following the euphoria
Poor week for Brits continues
as illness forces Armitstead out
of this year’s Olympic, Tour de
France and Tour of Britain successes.
Emma Pooley missed out on a
medal by nine seconds in the
women’s individual time trial on
Tuesday, in which compatriot Wendy
Houvenaghel finished 14th.
Alex Dowsett was eighth in the
men’s equivalent yesterday, with
London 2012 champion Bradley
Wiggins absent and his Team Sky
colleague Chris Froome a late
withdrawal this week. Germany’s
Tony Martin retained his title,
completing the 45.7km route in 58
minutes 38.76 seconds, with
American Taylor Phinney second
and Vasil Kiryienka of Belarus third.
IRELAND’S World Twenty20 hopes
suffered an early blow yesterday
when they lost their opening
match of the tournament by seven
wickets to Australia.
All-rounder Shane Watson took
3-26, including captain William
Porterfield with the very first ball,
to restrict Ireland to 123-7 at
Colombo’s R Premadasa Stadium.
Watson then smashed 51
off 30 balls as Australia, who
were runners-up to England in
the Caribbean two years ago,
reached their target with 4.5
overs remaining.
“We are a better side than that,”
said Porterfield, whose men face
West Indies next on Monday. “The
start wasn’t great, losing those
four wickets pretty early.”
Australia meet the Windies on
Saturday, and, of Watson, captain
George Bailey joked: “He is not
bad, is he? His fielding could
probably improve a little.”
India also began their campaign
with a win after beating
Afghanistan by 23 runs. The
minnows had threatened at 75-2
after 11 overs, and were
chasing 160 for victory, before
they were eventually dismissed
for 136.
NEWCASTLE manager Alan
Pardew dismissed any doubts over
the future of Demba Ba ahead of
tonight’s Europa League clash
away to Portugal’s Maritimo after
the striker’s agent had complained
of his unhappiness.
“That’s just people needing to
say things they shouldn’t say,
really, but it doesn't really affect
me and Demba,” said Pardew. “We
have got a good relationship.
Ba and Papiss Cisse are both
absent from Newcastle’s 19-man
squad, meaning Shola Ameobi is
almost certain to instead start.
Pardew denies
fall out with Ba
BY SPORTS DESK STAFF
LIVERPOOL manager Brendan
Rodgers has admitted he will use his
squad’s younger players in the
Europa League because of his
Premier League priorities.
“There is no doubt the Premier
League is our number one priority,
I’ve made that clear from the off,” he
said on the eve of tonight’s fixture at
Swiss side Old Boys. “If I lose some
key players that can make it very
difficult for us.”
Steven Gerrard and Luis Suarez
will be among those rested tonight.
Rodgers rides
Europa luck
BY DECLAN WARRINGTON
BY FRANK DALLERES
BY FRANK DALLERES
BY FRANK DALLERES
Australia and India both begin
with early tournament victories
SPORT
29
THURSDAY 20 SEPTEMBER 2012
cityam.com
Results
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MANCHESTER UNITED ................1
GALATASARAY...........................0
BY DECLAN WARRINGTON
CHAMPIONS LEAGUE
CFR Cluj 1 1 0 0 2 0 3
Man Utd 1 1 0 0 1 0 3
Galatasaray 1 0 0 1 0 1 0
Braga 1 0 0 1 0 2 0
TEAM PLD W D L F A PTS
half kept ourselves on the edge. Three
points in the opening game are very
important, especially when you look
at what happened to us last season.”
Exchanging passes with the
impressively mobile Robin van Persie
and Shinji Kagawa, Carrick attempt-
ed to round Fernando Musiera. and
connected sufficiently well with the
ball to score in an open goal despite
the goalkeeper’s clumsy trip that
brought him down.
Galatasaray’s movement was
always a threat but though they were
earlier unlucky not to be given a
penalty – and were right to appeal for
another before the end – it was
United’s Nani whose effort was saved
from the spot after Musiera’s foul on
Rafael. The Turks thereafter main-
tained their tempo but the equalising
goal never came.
GROUP H
TOTTENHAM forward Moussa
Dembele believes that anything less
than victory tonight against Lazio
will undermine their Europa
League ambitions and that his
team-mates should be targeting
European success.
Manager Andre Villas-Boas on
Tuesday underlined his belief that
Europe’s secondary competition is
“very important” and having won it
in 2011 with Porto, admits that he
wants to do “something special”
with Spurs which Dembele also
considers to be possible.
“Lazio is a big team and I think
Panathinaikos will be difficult too so
that’s why we have to win this game
so we can go [to Greece] with more
confidence,” said Dembele.
“This is a very important
competition for us. There are some
good teams in this competition but I
think we can do something in it.”
The first victory of Villas-Boas’s
reign came away to Reading on
Sunday when two goals from
Jermain Defoe and another from
Gareth Bale inspired a 3-1 victory.
The manager spoke afterwards of an
“anxiety” that had been lifted from
the team and Dembele, who arrived
in the summer from Fulham for
£15m, also admits that the squad is
consequently in a better place.
“That win was very important for
us because it took the pressure off
us,” he said. “It wasn’t an easy game.
Reading are a good team.
“We have a better spirit in the
team now, there is a lot of positive
energy in the squad.”
Regardless of the result, Villas-
Boas is expected to make changes to
his side and could give a debut to
troubled £14m goalkeeper Hugo
Lloris, though striker Emmanuel
Adebayor is unavailable because of a
hamstring injury.
Spurs’ shirt sponsorship with
Investec, meanwhile – for the Europa
League, FA Cup and League Cup –
has been extended for an additional
year.
We must start
with Lazio win,
says Dembele
CHELSEA manager Roberto Di
Matteo last night heralded the
arrival of Brazilian youngster Oscar
after he scored twice on his
Champions League debut, but casti-
gated the careless defending that
saw the holders squander a two-goal
advantage in their Group E opener.
Oscar, a £25m summer signing
from Sao Paulo, beat Gianluigi
Buffon with two long-range efforts --
the first with an element of accident,
the second by glorious design -- in
the space of three first-half minutes
as the Blues threatened Juventus
with a rare defeat.
But Arturo Vidal’s precise drive
ensured the Italian champions
stayed in touch and, 10 minutes
from time, substitute Fabio
Quagliarella pounced on lapses by
John Obi Mikel and experienced
captain John Terry to slot a
deserved equaliser through the legs
of Petr Cech.
“It was a great debut for Oscar,” Di
Matteo said of the 21-year-old’s first
start. “He scored two goals and the
second one was wonderful. He was
perfect tonight with the tactical
information we gave him. It is great
to see that we have a player like that
in our ranks.”
Di Matteo could not hide his dis-
pleasure that Mikel's carelessness
in possession allowed Claudio
Marchisio to expose Terry's
reliance on the offside trap and
release Quagliarella to complete
the comeback.
“We feel disappointed and a little
deflated that we found ourselves in a
fantastic position to win this game
and we came away only with a draw,”
he added. “We should have dealt with
it a little bit better. There was no pres-
sure on the ball and it was pretty dif-
ficult to play offside.”
Juventus, who won the Serie A title
last season without losing and
remain unbeaten after four games
this term, bared their teeth twice in
the opening half hour, Claudio
Marchisio springing the offside trap
and drawing a smothered save from
Petr Cech, and then Mirko Vucinic
slicing wide when unattended.
Yet by the 33rd minute Chelsea
were two goals ahead, Oscar opening
his account with a speculative shot
from 25 yards that ricocheted off
Bonucci’s outstretched leg and over
Buffon, and then immediately follow-
ing it with a two-touch wonder,
outfoxing his marker with a deft
flick before curling into the top
right corner.
Stung, the Italians champions
swarmed forward and landed a vital
psychological blow seven minutes
before the interval, when Arturo
Vidal, Juve’s most consistent attack-
ing threat, engineered space on the
edge of the area to drive a measured
shot low past Cech into the bottom
right corner.
The winger Eden Hazard was
vexed not to be awarded a spot-kick
after tumbling under Barzagli -- “It’s a
penalty. The referee didn’t do much
on many challenges,” said Di Matteo –
but action was otherwise scant at
both ends until the lively
Quagliarella escaped a leaden Terry,
following a woefully clumsy pass
from midfielder Mikel, gambolled
onto Marchisio’s through-ball and
nutmegged Cech.
The same striker beat Cech again
when striking against the bar at the
end, but Chelsea survived to draw.
Robshaw: Rugby shouldn’t start
to panic about Ashton’s attack
ENGLAND captain Chris Robshaw
hopes his fellow rugby players are
not about to be frightened off
from making public appearances
after the winger Chris Ashton was
glassed at the weekend.
The Saracens and England
international was on a night out in
London with his girlfriend when
he was attacked by a stranger
but Harlequins’ Robshaw
believes that rugby’s
relatively relaxed off-field approach
and culture remains one of it’s
greatest strengths as a game.
“What people love about
rugby is that they can still see
you after a game having a drink
with some mates, or going out
for dinner,” he said.
“That’s the beauty of the
sport, that we are connected [with
the public].
“It’s about finding the right
balance – as soon as you lose that
touch and isolate the players, it
wouldn’t be great for the game.
“The amount of people who get
pleasure from having the odd
interaction with players far
outweighs the odd bad incident.
“You don’t want to be locked
away at home and told you can’t
go out because someone might
do something.”
BRITAIN’S Lewis Hamilton has
postponed a decision on a new
contract until beyond this
weekend’s Singapore Grand Prix,
despite fresh talks with McLaren
over his future.
The 2008 Formula One world
champion, 27, is believed to be
weighing up final offers from the
Woking outfit, who signed him as
a 13-year-old, and Mercedes.
Hamilton, who has reignited his
title hopes with two wins from his
last three races, concludes his
current £15m-a-year contract at
the end of this season.
Mercedes are said to want
Hamilton to replace veteran
Michael Schumacher, although
their other driver Nico Rosberg
hopes the German prolongs his
stellar career. “I think it would be
right if he stays,” said Rosberg.
“We get along well, competition
between us is good.”
McLaren technical director
Paddy Lowe, meanwhile, insists
the team are planning for an
unchanged line-up next year. He
said: “It is our assumption that
they are the drivers who we will be
fielding next year.”
BY DECLAN WARRINGTON
BY DECLAN WARRINGTON
BY FRANK DALLERES
Fresh talks between Hamilton
and McLaren fail resolve future
THURSDAY 20 SEPTEMBER 2012
30
SPORT
cityam.com/sport
Manchester United began
their Champions League
campaign with a difficult
fixture against Galatasaray
Champions League: Page 29
@cityam_sport
CHELSEA.....................................2
JUVENTUS..................................2
BY FRANK DALLERES
AT STAMFORD BRIDGE
CHAMPIONS LEAGUE
Shakhtar 1 1 0 0 2 0 3
Juventus 1 0 1 0 2 2 1
Chelsea 1 0 1 1 2 2 1
Nordsjaelland 1 0 0 1 0 2 0
GROUP E
TEAM PLD W D L F A PTS
Di Matteo: He
deserves an
Oscar for that
Chelsea forward Oscar, right, arrived in the summer for £25m from Brazil’s Sao Paulo
Harlequins flanker
Chris Robshaw is the
England captain
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