Senior voices say new Parliamentary report

would put a sword of Damocles over banks

NYSE sold to
upstart ICE
in $8bn deal
THE NEW York Stock Exchange is
to end two centuries of
independence after its parent
company NYSE Euronext was
yesterday sold to upstart
IntercontinentalExchange (ICE) for
$8.2bn (5bn).
The deal hands control of one of
the most renowned names in
global finance to little-known ICE,
an Atlanta-based company best
known for its electronic
commodities trading platforms. As
part of the deal, ICE has committed
to maintaining the exchanges
iconic Wall Street building and its
traditional trading floor.
Our transaction is responsive to
the evolution of market
infrastructure today and offers a
range of growth opportunities,
said ICE chairman and CEO Jeff
Sprecher, who will be chairman
and chief exec of the new group.
NYSE Euronexts shares rose by a
third after the deal was announced
while ICE remained broadly flat.
Subject to regulatory approval, the
company will become the worlds
third-largest exchange group.
Despite acknowledging the stock
exchanges history, ICE has limited
interest in the equities market.
As a result it will seek to rid
itself of Euronext the pan-
European stock exchange
operating in Amsterdam, Brussels,
Paris and Lisbon in an IPO at the
earliest opportunity.
Yesterday analysts said ICEs real
target is the London-
headquartered Liffe, Europes
second-largest derivatives market.
Commission chairman Andrew Tyrie fears banks will try to get around the new ringfence rules
PROMINENT City groups reacted furi-
ously to plans for full separation of
banks today, arguing the proposals
add a fresh round of uncertainty to the
sector, hurting lending and growth.
And plans for a tougher leverage
ratio were also attacked, as it could
push up the cost of mortgage borrow-
ing and put the UKs banks at a com-
petitive disadvantage to foreign rivals.
The Parliamentary Commission on
Banking Standards (PCBS) wants new
laws to threaten banks with full sepa-
ration if they stray from the spirit of
the incoming rules on ringfencing.
This means a bank would have to dis-
pose of parts of its business, rather
than merely fence them off internally.
And the PCBS wants a review of the
new ringfence after a few years to
ensure it is working and if not, to
consider splitting banks completely.
For the ringfence to succeed, banks
need to be discouraged from gaming
the rules. All history tells us they will
do this unless incentivised not to, said
PCBS chairman Andrew Tyrie MP.
Thats why we recommend electrifi-
BY JAMES WATERSON
Ftse 100 M5,958.34 -3.25 dow n13,311.72 +59.75 nasdaQ n3,050.39 +6.03 /$ 1.62 unc / 1.23 unc /$ 1.32 unc
WHOS ON THE PCBS: page 3
n n
MORE ON THE DEAL: page 2
n n
BUSINESS WITH PERSONALITY
www.cityam.com FREE
CITY A.M.S TOP TWENTY CHARITABLE DONORS see pages 21-27
ring in 2013
with style
see our top venues, page 31
Certified Distribution
01/10/12 til 28/10/12 is 129,297
GUIDETOGIVERS
merry christmas and a happy new year CITYA.M. will return on wednesday 2 January 2013
BANKSEPARATION
BACK ON AGENDA
cation. The legislation needs to set out
a reserve power for separation; the reg-
ulator needs to know he can use it.
And if this power is used several
times, the PCBS suggests that even
well-behaved banks should be split up.
Significant use of this reserve power
would indicate that full separation
across the banking sector would be
very likely to be the appropriate step,
the report noted.
The industry hit back, arguing the
long-term, repetitive nature of the
threat to split up all banks can only
damage the sector and the economy.
Having a sword of Damocles dan-
gling over banks is not good for the UK
if we dont know what the industry
might look like in 10 years time, it is
not conducive to encouraging lend-
ing, said a finance source who
declined to be named.
The City of London Corporation
praised ringfences as a whole, but not
the extra threat to break banks up, say-
ing it was neither necessary or appro-
priate to tackle effectively the issues
that have arisen.
The CBI echoed these comments, say-
ing that while the threat of separation
might help to concentrate minds,
such a move would be detrimental to
businesses, preventing them from
accessing the full range of services
they need from a single provider.
Last years Vickers report proposed a
four per cent leverage ratio, but the
government favoured three per cent
in line with the global Basel III plans
a step opposed today by the PCBS,
which wants a tougher approach.
The British Bankers Association hit
out at the tougher limit, which could
come into effect before Basel III.
Increasing the ratio would restrict
the number of mortgages banks could
agree to, it added.
BY TIM WALLACE
2
0
1
2
ISSUE 1,787 FRIDAY 21 DECEMBER 2012
TAKING control of the London-
based Liffe derivatives market is the
main reason Intercontinental
Exchange (ICE) paid $8bn (4.9bn)
for exchange operator NYSE
Euronext, analysts declared
yesterday.
Although the NYSE Euronext
group includes the venerable New
York Stock Exchange and equity
markets across Europe, it is the
derivatives arm that offers growth
opportunities as new regulations
force more trades to be carried out
on electronic platforms.
The vast majority of the value
can be attributed to the derivatives
business. They want to be in
Europe, in size, because of all the
regulations that are coming in
Peter Lenardos, an analyst at RBC
Capital Markets, told City A.M..
Even assuming theres no recov-
ery in market conditions then
clearing volumes should
increase. If you layer that into
a market recovery then it
could be quit exciting.
However he warned that
the price is quite generous.
Yesterdays announcement is
a personal triumph for
57-year-old ICE chair-
man and CEO
Jeffrey Sprecher, a
prolific dealmaker who only founded
the business in 2000. His company
will be the dominant party in the
new venture, with NYSE Euronext
receiving only four of the 15
seats on the merged board.
Current NYSE CEO Duncan
Niederauer will become presi-
dent of ICE and report direct-
ly to Sprecher.
Although the deal will
require regulatory
approval this is more
IN BRIEF
Cable mulls insolvency shakeup
nBusiness secretary Vince Cable
yesterday floated the idea of shaking
up the UKs insolvency rules amid
questions around the controversial
collapse of electrical retailer Comet.
Cable told the House of Commons:
There may well be better ways of
handling insolvency. We should have
an open mind about other
approaches. The American Chapter 11
system may well be better and I want
to have a proper look at that.
Republicans push own fiscal plan
nRepublicans in Congress pushed
ahead yesterday with a fiscal cliff
plan that stands no chance of
becoming law as time runs short to
avert a Washington-induced economic
recession. House Speaker John
Boehners Plan B to limit income-
tax increases to the wealthy appeared
likely to pass the House last night
after it cleared a procedural hurdle.
President Barack Obama has vowed to
veto the plan.
Madoff brother given 10 years
nPeter Madoff will serve 10 years in
prison for his role in his brothers
multibillion-dollar Ponzi scheme, a
judge in the US said yesterday. Peter
Madoff, 67, pleaded guilty in June to
criminal charges including conspiracy
to commit securities fraud for
falsifying the books and records of the
investment advisory company
founded by his brother, Bernard
Madoff. He agreed at the time not to
oppose a request by prosecutors for a
maximum 10-year prison sentence.
Londons quality of Liffe
at heart of NYSE purchase
Trafigura earns $1bn twice in a row
Trafigura, the commodities trader, earned
about $1bn for the second year running in
2012, indicating that the profitability of
the worlds top houses that dominate raw
materials has remained high in spite of
slower economic growth in China. The
privately held company, based in Geneva
and Singapore, has told its lenders and
bondholders it made profits of $991.9m in
the year to September, down 11 per cent
from last years record $1.11bn. The
company does not release its accounts
publicly.
Selfridges buys office for 130m
Selfridges has bought an office block
neighbouring its flagship Oxford Street
shop for about 130m, in a move that
suggests that suggests the department
store will expand its presence in the
central London retail district.
Ex-banker charged in Olympus case
A former Taiwanese banker has been
arrested and charged in the US for
allegedly helping Olympus conceal a
$1.7bn accounting fraud. Chan Ming Fon
was arrested in Los Angeles yesterday.
Tesco loses appeal over collusion
Tesco won a partial victory against the
Office of Fair Trading yesterday, but an
appeal court ruled it had indirectly
colluded with rivals over cheese prices.
Drug supplier sold after NHS case
The founder of an antibiotics supplier that
settled accusations of defrauding the NHS
in 2010 is to walk away with nearly 50
million after selling the business to an
Irish competitor. Kent Pharmaceuticals
has agreed a buyout by DCC Healthcare.
BP and Rosneft plan TNK integration
Bob Dudley, BPs chief executive, is to join
a steering committee to mastermind the
integration of TNK-BP into Rosneft, the
companies announced yesterday. BP is to
take two seats on the Rosneft board of
directors.
Dover privatisation plan blocked
A controversial scheme to privatise the
Port of Dover has been blocked by the
Government after a backlash from local
residents and a revolt by ferry operators.
Monti drafting reform agenda
Italian Prime Minister Mario Monti will
over the next few days unveil a policy
road map that aims to pressure Italy's
fractious political parties into continuing
his overhaul of the economy.
Rival sales weigh on Nike
Nikes fiscal second-quarter profit shrank
18 per cent as results were weighed down
by $137m in losses tied to the sale of the
Umbro and Cole Haan brands, masking
strong demand for the athletic-goods
giant's products.
The historic New York Stock Exchange building will be preserved as part of the deal
2
NEWS
BY JAMES WATERSON
To contact the newsdesk email news@cityam.com
T
HE COMMON complaint about
City A.M. in its infancy was that
it was hard to pick up outside
the City, Canary Wharf and
Mayfair.
Readers generally loved the paper
but wanted to read it on their way
into work rather than when they
arrived at their destination.
So, over the past couple of years we
have been re-jigging our distribution
range by substituting some areas with
others and many of you will have
noticed the paper has been available
at tube stations and overground sta-
tions nearer to your homes.
Earlier this year, we went one stage
further, increasing the overall circula-
tion of the newspaper by 30 per cent,
with the majority of the new copies
outside our traditional central
destinations.
This has been a truly dramatic
Thank you for reading us in ever greater numbers in 2012
FRIDAY 21 DECEMBER 2012
strategic development. It enables
readers to devote more time to the
newspaper if they wish and it gives
more people the chance to pick us up.
So far the signs are encouraging,
according to our recent readership
survey which hundreds of you filled
in.
2012 has been a year of further
growth for City A.M. We organised our
first ever event, Active Trader, which
attracted hundreds of people to a con-
ference aimed at giving traders fresh
perspectives on their investing strate-
gies. There will be a second such event
in the year to come.
In October, we staged our third
annual awards event, at which the
guest speaker Boris Johnson spoke
wittily and affectionately about the
newspaper and the important role
that financial services play in this
great City.
Personality of the year went to
Sebastian Coe who else? the man
who delivered the near flawless
Olympic Games to reaffirm what
London and Londoners can achieve.
London, we did it right, said Coe in
his final address at the Olympic stadi-
um and there are few who would dis-
agree with him. The Olympics gave us
and the capital at large a summer we
will never forget.
On another front, we launched our
lifestyle magazine Bespoke earlier
that did get away towards the end of
the year, Direct Line, has maybe
breathed some life into an otherwise
moribund market. We can only hope.
Mergers and acquisitions have been
down too, but one gigantic deal, the
merger of Glencore and Xstrata, did
finally get completed after many
hitches along the way.
Elsewhere, weve got much to look
forward to, including the pronounce-
ments of the new Canadian governor
of the Bank of England, Mark Carney.
Theres nothing to suggest so far that
Carney will be short of candid views.
Were back on 2 January and we
hope you will be here too.
Until then, whatever you are up to,
have a very merry Christmas.
this year and there are plans to
expand our digital coverage, with an
enhanced and redesigned web-site.
There are also plans to expand our
coverage of careers.
For many, the year that is just pass-
ing has not been an easy one. Some of
the Citys core employers have been
retrenching, especially the invest-
ment banks who have been struck by
lower business volumes together with
stiffer regulation.
There has also been consolidation at
some of the mid-sized banks, with
Investec buying out Alex Snows
Evolution and Canaccord Genuity
merging with Collins Stewart. Again
job losses have followed but the hope
is that the market is slowly returning
to a more profitable, less oversup-
plied, basis.
It has been a year of fewer IPOs in
London than in recent years but one
likely to succeed than recent failed
attempts to consolidate the exchange
sector (see box), such as ICEs own
attempt to join forces with Nasdaq
and buy NYSE Euronext in 2011.
If completed it will make ICE
which lost its bid to buy the London
Metal Exchange this summer a
major player in the London market.
The deal also raises the prospect of
Liffe traders enjoying easier access to
ICEs existing platforms.
NYSE Euronext were advised by
Perella Weinberg and BNP Paribas,
while Morgan Stanley advised ICE.
NYSE Euronext
20Dec 14Dec 17Dec 18Dec 19Dec
28
30
32
26
24
$
32.25
20Dec
ICE for London Metal Exchange
n When dropped? June 2012
n Bid value? 1.3bn
n What went wrong? ICEs bid was
beaten by Hong Kong Exchanges &
Clearing, which paid 1.39bn for the LME.
n What happened next? ICE continued
its worldwide expansion with yesterdays
purchase of NYSE Euronext.
Deutsche Borse for NYSE Euronext
n When dropped? January 2012
n Bid value? $9bn (5.5bn)
n What went wrong? The European
Commission feared a quasi-monopoly in
the derivatives market and rejected it.
n What happened next? Deutsche Borse
challenged the commissions decision in
the EUs General Court in Luxembourg.
LSE for TMX Group, Toronto
n When dropped? June 2011
n Bid value? 2.2bn
n What went wrong? Deal was scrapped
due to lack of support among TMXs
shareholders.
n What happened next? Maple Group, a
consortium of Canadian banks and
brokerages, won control of TMX last year.
ICE and Nasdaq for NYSE Euronext
n When dropped? May 2011
n Bid value? $11.3bn (6.9bn)
n What went wrong? Rejected by US
regulators on fears the merged company
would dominate US stock listings.
n What happened next? Earlier this year
Nasdaq said other mergers will happen
in the future.
FAILED EXCHANGE DEALS
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
EDITORS
LETTER
DAVID HELLIER
david.hellier@cityam.com
follow me on twitter: @hellierd
nAllister Heath is away
By Jakob Villumsen
Jeffrey Sprecher will be CEO
and chairman of the group
SWISS bank UBS is now facing an
investigation from the authorities in
Hong Kong, just a day after it settled
major interest rate-fixing charges
with regulators in the UK and the US.
The bank was fined 940m this
week, after regulators found evidence
that key interbank interest rates were
being fixed by the banks staff, while
corrupt payments were made to other
banks and brokerages to help them
manipulate the market.
UBS acted quickly to settle the
charges, gaining a 20 per cent dis-
count from the British Financial
Services Authority (FSA), as chief exec-
utive Sergio Ermotti wanted to put
the scandal behind the bank.
But instead of moving on from the
crisis, the bank was yesterday hit by a
new investigation.
The Hong Kong Monetary
Authority (HKMA) has received infor-
mation from overseas regulatory
authorities about possible miscon-
duct by UBS involving submissions for
the Hong Kong Interbank Offered
Rate (Hibor) and other reference rates
UBS facing new
Hong Kong rate
fiddling probe
BY TIM WALLACE
in this region, the HKMA announced
in a statement. The HKMA has com-
menced an investigation with a view
to ascertaining any misconduct com-
mitted by the bank in relation to
Hibor submissions, and assessing
whether the misconduct, if substanti-
ated, has any material impact on the
Hibor fixing results.
The UK and US authorities only
looked for and revealed information
on wrongdoing in their own jurisdic-
tions for example, some Japanese
yen Libor manipulation was carried
out by London-based staff, though
they also found malpractice in Tokyo,
Zurich and the US.
UBS was unavailable for comment.
BlackBerry subscribers plunge
by a million before new launch
BLACKBERRY maker Research in
Motion shed one million subscribers
and shipped 500,000 fewer
smartphones last quarter ahead of
the launch of its new model next
month, it said yesterday.
The Canadian company said
people were delaying buying the
phones because they were waiting
for the launch of the new
BY MICHAEL BOW
BlackBerry 10 smartphone, due to
go on sale at the end of January.
The Nasdaq-listed company said it
now had 79m subscribers compared
to 80m last quarter.
Smartphone shipments fell from
7.4m in September to 6.9m over the
same period.
It meant third-quarter revenues
halved year on year down to $2.7bn
(1.66bn), versus $5.1bn in 2011,
leading to an adjusted net loss of
$114m.
But shares spiked in the firm
after it beat Wall Street
expectations, which had forecast
heavier losses.
The firm is amassing a cash war
chest ahead of the launch of the
BlackBerry 10 next month.
It boosted the value of its cash
holdings and investments from
$2.3bn to $2.9bn over the third
quarter, it said yesterday.
UBS AG
20Dec 14Dec 17Dec 18Dec 19Dec
15.40
15.20
15.00
15.60
CHF
15.03
20Dec
CREDIT card specialist SAV Credit
is in the final stages of acquiring
seven million more customers from
Santander for an undisclosed price,
it was announced yesterday.
It is thought that 3.5m of those
customers are active, adding more
than a third to SAVs existing 9.5m
customer base.
Santander acquired the credit
card business which provides
credit services through firms such
SAV Credit to buy major store
cards business from Santander
BY TIM WALLACE
as Debenhams as part of a wider
bundle of GE Money assets it
bought in 2009.
The pair are negotiating with the
stores who use the service to gain
their agreement, but expect them
to give the thumbs up as the
service will now be provided by a
specialist operator, rather than a
small part of a larger bank. The
deal is due to close early in 2013.
Earlier this month SAV revealed
plans to start taking deposits,
giving it more funding to expand.
FRIDAY 21 DECEMBER 2012
3
NEWS
cityam.com
T
HE Parliamentary
Commission on Banking
Standards (PCBS) was
established in the wake
of the Libor scandal earlier
this year and has already
proved controversial with
todays report.
The commission is looking
into ways in which standards
in the banking industry can
be raised.
It will probe the industry
more broadly than an earlier
commission led by Sir John
Vickers, which last year
called for banks to ringfence
their retail services from
their investment operations.
The PCBS is chaired by
Andrew Tyrie and was set up
by chancellor George
Osborne after the furore that
followed revelations that
Barclays traders had been
involved in rigging interest
rates in the interbank
lending market.
It has since emerged that
many other banks were
involved in the same activity
and earlier this week UBS was
hit with 940m in fines, more
than three times the Barclays
penalties.
The members of the PCBS
are Andrew Tyrie, the Bishop
of Durham, Mark Garnier,
Baroness Kramer, Lord
Lawson of Blaby, Andrew
Love, Pat McFadden, Lord
McFall of Alcluith, John
Thurso and Lord Turnbull.
LIBERAL Democrat Baroness Kramer is one of
several peers on the commission. She began her
career in banking in 1982 at Continental Illinois
Bank before working for Citicorp and later setting
up several of her own companies. She served as MP
for Richmond Park until 2010, when she lost her
seat to Tory candidate Zac Goldsmith. She has
championed community-focused mutual banks,
and this year warned banks against ending free
current accounts before they regained public trust.
The former Conservative chancellor of the
exchequer, who served in Margaret Thatchers
administration, is an advocate of completely
splitting retail and investment banking
operations. Lawson has argued that bankers are
clever enough to find ways around a simple
ringfence. He has also attacked the system of
financial regulation now being reformed
instituted by one of his successors in Number 11,
Labour chancellor Gordon Brown.
Labour MP Patrick McFadden may not be the
biggest name on the commission but the former
shadow business secretary, currently MP for
Wolverhampton South East, is a man who was at
the heart of the New Labour project that swept
former Prime Minister Tony Blair to power in
1997. A former speechwriter for Labour leader
John Smith, he acted as Blairs adviser in
opposition and in government, becoming Blairs
political secretary in 2002.
JUSTIN Welby has recently hit the headlines for
more than his seat on the commission: the Bishop
of Durham was picked to succeed Rowan Williams
as the Archbishop of Canterbury last month. He has
still found time to participate in the commissions
hearings, however, drawing on his years of
experience as an oil executive. In October, the Old
Etonian said pre-2008 financial markets were
exponents of anarchy and financial services
served nothing.
Whos who on Andrew Tyries committee
ACCOUNTANCY group Grant
Thornton yesterday posted a 10.4
per cent rise in global revenues,
fuelled by international expansion
and growth at home.
The sixth-biggest accountancy
firm said revenues in the year to
the end of September totalled
$4.2bn. It said its UK practice grew
13 per cent, while Asia Pacific
revenues ballooned 33 per cent to
$579m via new tie-ups in China and
Australia.
Its global workforce grew 14 per
cent to more than 35,000.
Revenues up at
Grant Thornton
BY MARION DAKERS
WILLIAM HILL and GVC Holdings
have agreed a 485m takeover of
online bookie Sportingbet, after
weeks of negotiations.
The deal, announced yesterday,
will see William Hill pay 454m in
cash for Sportingbets lucrative
Australian and Spanish operations.
GVC will mop up the rest of
Sportingbets less desirable
operations, making a share
contribution to the deal.
The deal marks William Hills
first move into Australia as part of
an international expansion.
Will Hill snaps
up Sportingbet
BY JAMES TITCOMB
ENGINEER Weir Group yesterday
strengthened its position in the US
shale gas sector as it acquired
Mathena for up to $385m (236m).
Oklahoma-based Mathena, which
manufactures pressure control
rental equipment including
hydraulic chokes used in fracking,
marks a key move for Weir to broad-
en its operations in the US shale gas
drilling market.
FTSE 100-listed Weir will pay an ini-
tial payment of $240m, with a
deferred consideration of $145m
payable over two years contingent
on meeting profit targets.
Based on its fourth quarter esti-
mates, Mathena is forecast to deliver
annualised earnings of $49m.
Weir Group chief executive Keith
Cochrane yesterday said that the
acquisition was a close strategic fit
with Weirs existing pressure con-
trol business Weir Seaboard.
The business has strong growth
potential and increases our expo-
sure to shale oil and gas, markets
with attractive long term structural
Weir centres on
US shale gas in
Mathena deal
BY CATHY ADAMS
growth prospects, Cochrane said yes-
terday.
Mathena is a well-regarded busi-
ness in the US upstream oil and gas
markets, with a strong management
team and market share in the pres-
sure control drilling markets.
Analysts from Investec cheered the
deal. This acquisition fits in nicely
with Weir Seaboard and diversifies
oil & gas revenues away from the
pressure pumping market, they said
in a note.
The markets reacted well to the
acquisition, with Weir Group one of
the biggest blue chip risers yesterday,
closing up 2.81 per cent at 1,863p.
A small investment in the future
of cheap and plentiful energy
W
ITH too much hot air from
people who arent risking
their own money in the
UK debate over shale oil
and gas, it is interesting to be
reminded by Weirs acquisition of
Mathena yesterday of just how
impressive the shale energy story
has been in the United States,
where Mathena is headquartered.
Earlier this month, Exxon Mobil
forecast that North America would
be a net energy exporter by 2025
thanks to its domestic shale
industry, and that more than half
of the growth in unconventional
natural gas supply over the next
two decades will be in North
America.
That would leave Weir sitting
pretty. As its new acquisition
makes equipment for shale gas
drillers, it is an even safer play
than the drilling itself, with its
attendant uncertainties about
yield, lifespan and the volatility of
the energy market.
Britains shale gas opportunity is
still unproven, but as politicians
take the first steps towards
exploring the potential for a new
cheap source of domestic energy,
they could do worse than look at
the long term opportunities
companies are identifying and
investing their resources to pursue.
BOTTOM
LINE
MARC SIDWELL
Weir Group PLC
20Dec 14Dec 17Dec 18Dec 19Dec
1,800
1,825
1,850
1,775
1,875
1,900 p
1,863.00
20Dec
FRIDAY 21 DECEMBER 2012
4
NEWS
cityam.com
Keith Cochrane, group chief executive of Weir, sees long term growth potential in shale
A

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Ocial government fuel consumption in MPG (litres per 100km) for the new M-Class Special Edition: Urban: 34.4 - 38.7 (8.2 - 7.3), Extra Urban: 42.2 - 50.4 (6.7 - 5.6), Combined: 39.2 - 44.8
(7.2 - 6.3). CO2 Emissions 194-158 g/km. Model featured is a ML 250 BlueTEC Special Edition at 44,870 on-the-road including optional Intelligent Light System at 1,630.00. (OTR price Inc. VAT, delivery, 12 months Road Fund Licence, number plates, rst registration fee and fuel).
*Finance oer based on an ML 250 BlueTEC Special Edition on a Mercedes-Benz Agility Agreement, on 10,000 miles per annum. Excess mileage charges may apply. Payable if you exercise the option to purchase the car. Includes optional purchase payment, purchase activation fee and Retailer deposit contribution.
Orders/credit approvals on selected M-Class models between 1 October and 31 December 2012, registered by 31 March 2013. Guarantees and indemnities may be required. Oers cannot be used in conjunction with any other oer. Some combinations of features/options may not be available. Please contact Retailer
for availability. Terms and conditions apply. Credit provided subject to status by Mercedes-Benz Financial Services UK Limited, MK15 8BA. Prices correct at time of going to print 10/12.
Representative Example: ML 250 BlueTEC Special Edition
The new M-Class.
Introducing the Special Edition.
From just 469
*
a month, you can enjoy standard features including
19" alloy wheels, Mirror Package, aluminium running boards, chrome
underguards and LED daytime running lights. In the M-Class Special
Edition, you can go anywhere, and go there in style.
Visit mercedes-benz.co.uk/offers
36 Monthly
payments of*

469.00
Customer
deposit
7,374.77
On-the-road
price
43,240.00
Retailer deposit
contribution
1,500.00
Duration of
agreement
36 months
Optional
purchase
payment

20,975.00
Amount of
credit
34,365.23
Total amount
payable

47,008.77
Acceptance
fee
180.00
Purchase
activation fee

95.00
Fixed
interest rate
4.16%
Representative
APR
4.6%
SEVEN firms are bidding in an auc-
tion of the UKs 4G airwaves that will
allow them to run significantly faster
mobile internet services while boost-
ing the governments coffers.
Ofcom yesterday announced the
participants for Januarys auction.
The UKs four mobile operators EE,
O2, Vodafone and Three are expect-
ed to grab the lions
share of the spec-
trum on offer.
The other three
participants are
BT, Hong Kongs
PCCW, and the
managed telecoms
network firm MLL.
They will be bidding
at two spectrum fre-
quencies: the more-
desirable 800MHz band,
appropriate for
wi des pr ead
mobile net-
works, and
Seven bidders
face off for 4G
mobile auction
BY JAMES TITCOMB the 2.6GHz band for shorter-range
signals.
The well-resourced EE, Vodafone and
O2 are expected to snap up the three
800MHz slots, which will let them
offer high-speed networks to most of
the UKs population.
A fourth operator likely to be
Three is guaranteed some of the
2.6GHz spectrum. This would boost
speeds on Threes network in certain
areas. The other bidders will look to
boost their wireless broadband offer-
ings with slots of 2.6GHz.
Ofcom says 4G networks will achieve
speeds up to 10 times as fast as 3G
ones, allowing instant loading of web
pages.
The auction which chancellor
George Osborne expects will raise
3.5bn will go ahead in January. The
800 MHz networks will go live in May
or June, with the 2.6GHz spec-
trum freed up over the next
12 months.
Pace PLC
20Dec 5Dec 6Dec 7Dec 10Dec
180
182
184
186
188
190
178
176
192
194 p
186.70
20Dec
FRIDAY 21 DECEMBER 2012
6
NEWS
cityam.com
Pace misses out on Motorola TV
box unit after Google sells out
BRITISH set-top box manufacturer
Pace has missed out on a deal to
buy Motorola Home, the TV box
maker owned by Google.
Google yesterday announced it
had sold Motorola Home which
came as part of its $12.5bn (7.7bn)
purchase of Motorola this year in
a $2.35bn deal that will see the
unit go to US firm Arris.
Pace was unwilling to match
Arriss value for the company and
the merger now poses the threat of
a much bigger competitor in the
BY JAMES TITCOMB
US, where Pace generates most of
its revenues.
The heavily-leveraged deal will
see Google take a 15.7 per cent
stake in Arris. Pace boss Mike Pulli
said: Although we had the support
of our major shareholders and
committed facilities, we could not
reach an appropriate conclusion to
the potential transaction.
Shares in the company had been
suspended last week on news of the
potential deal, due to the fact that
it would have constituted a reverse
takeover since Motorola Homes
value is much more than Paces.
The company relisted yesterday,
with shares falling three per cent
on the news before recovering.
ERICSSON, the Swedish telecoms
giant, yesterday took an 8bn
Swedish krona (754m) writedown
over its ST-Ericsson joint venture,
in a bid to limit exposure to it
after partner STMicroelectronics
decided to pull out.
ST-Ericsson, which makes chips
and other components for mobile
phone manufacturers, has
suffered since it came into being
in 2009, partly down to the decline
of Nokia, a key customer.
Ericsson takes huge writedown
on venture to cap woeful year
BY JAMES TITCOMB
The writedown possibly signifies
an end to the joint venture, which
has lost around 1bn in the last
three years. The future of the
company was plunged into doubt
earlier this month when French-
Italian STMicroelectronics
announced it would look to sell its
stake. Ericsson said yesterday it
would not be buying it.
Ericsson, which has had a
woeful year as large telecoms
projects have been put on hold, is
now likely to report a third-
quarter loss.
CD and DVD owners will be able to copy content onto computers and music players
legally for the first time under new proposals. Business minister Vince Cable said
bringing the law into line with ordinary peoples reasonable expectations will boost
respect for copyright. The rules apply as long as copying is for personal use.
GOVERNMENT TO LEGALISE CD COPYING
Ofcom boss Ed Richards is
holding the 4G auction
THE LAWYER to foodie career move
must be a relatively uncommon one,
or so The Capitalist thought.
City A.M. reported earlier this
month on SJ Berwin tax solicitor
Lucy Gregory jumping off the legal
career ladder to pursue a vocation in
cheesemongery.
Now another legal bod has
achieved entrepreneurial success in
the food industry.
Helen Tse, a former Clifford Chance
solicitor, has created a range of
gluten-free Chinese sauces.
Tse joined forces with her spice-lov-
ing sisters Lisa and Janet to create the
Sweet Mandarin range, and secured
funding with a successful appearance
on BBCs Dragons Den programme.
The Sweet Mandarin cooking sauces
are now stocked in Sainsburys and
Selfridges.
Tse is still busy drafting, but instead
of legal contracts she has been pen-
ning a book, The Sweet Mandarin
Cookbook, to be published in 2014.
FRIDAY 21 DECEMBER 2012
Visitors at the Citys Heron Tower cannot miss the giant fish tank residing in the lobby.
The aquarium is the largest privately owned one of its kind in Britain, and home to 67
different species of fish. It was also home to two festive guests on Wednesday, when
divers donning Santa suits entered to give the tank a Yuletide spruce up.
8
cityam.com
cityam.com/the-capitalist
The Capitalist often reports on the
happenings over at spread betting
firm Spreadex, and now hears that the
company will be moving closer to home
after opening a new sales office in
London Wall. Veteran traders Darren
Barton and Dave Mackay (affectionately
nicknamed the Chopper), previously
of the likes of NatWest Markets and
Ambrian, are heading up the venture.
Given the pairs past record of client
entertainment and long, liquid lunches,
the bars and restaurants in the London
Wall area are sure to be popping the
champagne corks in early celebration of
the anticipated additional business
coming their way.
Another tale of Christmas party fun in the
City has reached The Capitalist. The
recipient of the office party jollities this time,
Leadenhall Market restaurant Chamberlains.
Loyal readers of this column will recall City
bills laden with a handful of magnums of
Dom Perignon or Grey Goose. However, the
owners of this bill went for the quantity
over quality approach ordering a round
of 191 jaegerbombs, certainly an explosive
way to end the party. And on that note of
social excess, The Capitalist is downing
tools for the festive period, but will be
back in the New Year and in the
meantime would like to wish all
readers of this page a very Merry
Christmas, and Happy New Year.
EDITED BY CALLY SQUIRES
Got A Story? Email
thecapitalist@cityam.com
Saucy new job
for ex-Clifford
Chance lawyer
FESTIVE INTRUDERS IN HERON TOWERS FISH TANK
THECAPITALIST
Left to right: Helen and Lisa Tse with their Sweet Mandarin sauces
TRUETT Tate, Lloyds TSBs former
global head of wholesale and
international banking, is going to
head up the Australia and New
Zealand Banking Groups (ANZ) New
York office as chief executive and
head of institutional relationship
banking America, it was announced
yesterday.
Tate will take up his new post
from 1 February 2013. He resigned
from the Lloyds board in
February and has over 40
years of banking
experience. Before he
joined Lloyds in 2003,
he spent 27 years at
Citigroup.
Former Lloyds
wholesale boss
joins ANZ in US
BY CITY A.M. REPORTER
YOUNG women drivers are set to see
substantial rises in the amount they
pay for car insurance from today, after
a new EU ruling came into force.
Last year the European Court of
Justice ruled that it was discriminato-
ry to charge people different amounts
for insurance products based on their
gender.
The new rules are an early
Christmas present for men, said
Michael Ossei of price comparison
website uSwitch. Women will be in
for a rougher ride though, with pre-
miums set to rise by up to 25 per cent.
Hardest hit will be women aged
between 17 and 25 who could see pre-
miums almost double.
However the ruling is set to have
unpredictable effects across the indus-
try, depending on the make-up of a
firms existing customer base.
Adrian Webb of the female-targeted
Sheilas Wheels car insurance brand
Female drivers feel the pinch as
insurance premiums rise today
BY JAMES WATERSON
told City A.M. that there will be mini-
mal variation to the rates his company
charges because 90 per cent of its exist-
ing customers are female.
The women who are with us
already will protect the premiums
going forward. It would take the best
part of 10 years for the benefit to
erode, he said.
For other companies where the
male and female spread is close, the
change could be much larger.
The reason there has been differ-
ences is the risk is very, very different
31 per cent of dangerous driving con-
victions are young men, he added.
However there is hope for women
who can prove that they are safe driv-
ers through other means, such as fit-
ting a GPS-enabled black box
insurance system.
The ruling will also affect some
retirement products as insurers will
not be able to take a womans longer
life expectancy into account when set-
ting annuity rates.
FRIDAY 21 DECEMBER 2012
cityam.com
10
NEWS
Sheilas Wheels high number of women customers could minimise price swings
IN BRIEF
Providence in landmark year
n Irish-focused Providence Resources
yesterday hailed a landmark year for
its drilling programme. Earlier this year,
Providence struck oil at the Barryroe oil
field, with flow rates of 3,514 barrels a
day. The junior stock market-listed firm
spent up to $500m (307m) on this
years drilling programme, in six basins
offshore Ireland. Providence plans to
drill a further three wells next year, and
two more the year after.
WPP continues shopping spree
n WPP has purchased a majority stake
in Australian digital communications
firm Bienalto for an undisclosed sum.
The FTSE 100 ad giants acquisition is
the latest in a shopping spree, which
also includes Chinese communications
agency ArtM and entertainment
marketing agency Filmworks China.
WPP boss Sir Martin Sorrell has set a
target of 35-40 per cent of revenue
coming from digital platforms in the
next five years. Bienalto will become
part of WPP subsidiary Wunderman.
Deutsche Telekom chief quits
n Deutsche Telekom chief executive
Rene Obermann has unexpectedly
announced he will step down at the end
of 2013 and be succeeded by finance
director Timotheus Hoettges. Hoettges,
50, said yesterday he was not planning
major changes to strategy and would
continue Obermann's drive of investing
in the United States and Germany as the
firm battles to return to revenue growth
against a tough economic backdrop.
Centamin resumes at Sukari mine
n Gold miner Centamin yesterday
confirmed that operations had fully
resumed at its flagship asset, the
Sukari mine in Egypt. Last week, the
operations at the mine were
suspended following a dispute over
diesel supplies and a customs request
to halt gold exports. Capital Drilling,
which also works on the gold mine,
said in a statement yesterday that it
would ramp up production over the
coming weeks at Sukari. Centamin
shares closed up three per cent.
Energy firms urged
to lift lid on prices
THE UKs Big Six energy
companies should be forced to
reveal how much energy they have
bought and sold from themselves,
in a bid to increase transparency
and customer trust, MPs said
yesterday.
The Energy and Climate Change
Committee, headed by
Conservative MP Tim Yeo, said
there was not enough information
about suppliers wholesale
arrangement, hitting competition
and consumer confidence.
The committee also called on
the energy regulator Ofgem to do
more to fight anti-competitive
behaviour.
Even before the recent reports
of wholesale price-fixing, we were
extremely concerned about the
BY MICHAEL BOW
lack of transparency around
wholesale prices and suppliers
trading arrangements, Yeo said.
Ofgem must get its act together.
It should require greater
transparency around wholesale
prices, trading and the link
between wholesale prices and
supply prices.
The MPs also said the Big Six
comprised of British Gas, EDF
Energy, E.ON, nPower, Scottish
Power and SSE should be subject
to an annual report from Ofgem,
outlining how they made their
profits.
A recurring theme throughout
this inquiry has been the lack of
transparency about where the
money that people pay for their
energy goes, Yeo said. Consumers
deserve greater transparency in
their bills.
Truett Tate will be
based in New York
ARE THE NEW CAR
INSURANCE RULES FAIR?
Interviews by Jakob Villumsen
These views are those of the individuals above and
not necessarily those of their company
No, not really. I think it is fair to let insurance
companies assess their risk. I do not quite see it as
discrimination. It will just make things more blunt,
and that does not benet the consumers.
JEN HAWES-HEWITT
ACCENTURE

No, I do not really think it is fair. You have

different groups, and different risks for them. I am
concerned that insurance companies might raise
the prices, instead of average.
DANIEL BLYTON
RPS

Yes. To a certain extend at least. When I got

my drivers license and bought my rst car, I had to
pay about 40 per cent more than my female friends.
I think that difference was too big and a bit unfair.
ALEX REEVES
XL INSURANCE

CITYVIEWS
FRIDAY 21 DECEMBER 2012
11
NEWS
cityam.com
Lack of debt finance
hampers hotel deals
THE number of hotel deals slowed
in the second half of the year as
the lack of debt financing
continues continued to take its
toll on the sector, data published
yesterday by Deloitte showed.
UK hotel transactions totalled
around 300m in the second half
of the year, a significant
slowdown on the 1bn reported
in the first half and 2.5bn in the
same period last year.
Some recovery in the UK hotel
transaction market was apparent
in 2011...and this continued into
the first months of 2012, said
Nick van Marken, global head of
hospitality at Deloitte.
However, activity slowed in the
second half of 2012 whilst there
are a number of transactions in
the pipeline, we saw very few get
across the line.
Single asset deals continue to be
dominated by London where
pricing remains strong, the
accountancy firm said. Deals
BY KASMIRA JEFFORD
included the acquisition of the
luxury Mayfair hotel the
Cavendish by Singapores Ascott
Group for 159m.
Outside the capital, distressed
sales dominated the market.
These included the sale of the
Glasgow Radisson, which was
bought out of administration by
Azure Properties; Hyatt Hotels
Corporations acquisition of the
Hyatt Regency in Birmingham and
New-York-based KSL Partners
purchase of the hotel and golf
resort the Belfry.
Van Marken said: There are a
number of portfolio and single
asset transactions that are
currently being marketed. As a
result, activity is expected to pick-
up.
That said, difficulties in
accessing debt funding and the
continued disparity between buyer
and seller in terms of price
expectation mean disposal
processes are likely to continue to
be longer and more difficult to
complete.
JEWELLER THEO FENNELL HALVES ITS LOSSES
THEO FENNELL
yesterday said it
more than halved its
losses in the first
half of the year. The
luxury jewellery,
which is in ongoing
takeover talks with
private equity firm
EME Capital, posted
a 610,083 loss in
the six months to 30
September down
from 1.4m last
year, thanks to cost
cutting measures.
But sales fell eight
per cent to 4.9m as
the outlook for the
retail sector
remained uncertain.
Luxury home developer confirms takeover talks
NORTHACRE Group, the ultra high-
end residential developer, yesterday
confirmed it has received two
takeovers offers, one of them led by
its chief executive Ken MacRae.
The Aim-listed firm, which
helped develop the Lancasters
apartments next to Hyde Park, said
it is in preliminary talks with Law
2492, MacRaes management
buyout vehicle. It has also received
an approach from Abu Dhabi
Capital Management.
The discussions are at an early
stage and there can be no certainty
as to whether an offer for the
company will or will not be made,
the group said.
Its shares surged 23 per cent on
the news yesterday to 18p, valuing
the firm at around 21m.
Northacre cut its losses before tax
to 6,000 in the six months to 31
August compared with the same
time last year 3m.
BY KASMIRA JEFFORD
CHINAS largest property developer
by market value is set to make its first
foray outside of the country after put-
ting in an offer to buy One Finsbury
Circus in the City for 152m.
China Overseas Land & Investment
is close to signing a deal to acquire
the freehold of the Grade II listed
block, designed by Sir Edward
Lutyens in the 1920s for BP, then
known as the Anglo-Iranian Oil
Company.
The sale comes just 18 months after
Invesco bought the 210,000 square
foot property from Hermes Real
Estate and LaSalle Investment
Management for 141.5m.
Tenants include law firm
Stephenson Harwood and Alvarez &
BY KASMIRA JEFFORD Marsal, the restructuring experts.
Foreign first-time buyers have been
flocking to the London office market
seeking stable assets with long-term
incomes amid the uncertainty in the
global financial markets.
Last year overseas investors account-
ed for 60 per cent of total turnover in
central London of 9.1bn.
Foreign first-time buyers accounted
for a third.
In October, the property arm of
Japanese telecoms firm Nippon
Telegraph & Telephone Corporation
bought 20 Finsbury Circus for 42.5m.
China Overseas is a subsidiary of
China State Construction Engineering
Corporation. The high-end developer
is listed in Hong Kong and has a mar-
ket value of HK$188bn (15bn).
It is being advised by CBRE.
LEGAL & General Property said
yesterday it has bought a West Tower
in the Docklands for 40m, marking
the third data centre site the firm
has snapped up in three months.
The property, which makes up one
half of the City Reach development
near Canary Wharf, is the principal
data-hosting facility of Telstra Global
EMEA, the UK arm of the Australian
telecoms company, Telstra.
Derek Gilby, senior fund manager
at LGP, said: There have been only a
limited number of data centre
investment transaction over the last
year or two and, located in one of the
premier data centre locations in the
country and let to a strong covenant,
this offers a strong, secure, long-
dated and inflation hedged source of
income.
L&G acquires
40m tower in
the Docklands
BY KASMIRA JEFFORD
Chinese property giant to make
maiden investment in the City
One Finsbury Circus was previously the headquarters of oil giant BP
THE GOVERNMENT is forcing
transport group Go-Ahead to
compensate London Midland
passengers for cancelled trains and
delays to services last year in a
package of benefits worth 7m.
In compensation, London
Midland season ticket holders will
be given five days worth of free
travel passes. A further 500,000
cheap advance tickets for
passengers on routes serving
London, Birmingham,
Northampton, Crewe and
Liverpool will be made available
over the next two years.
Transport minister Norman
Baker said yesterday: London
Midland has cancelled or delayed
hundreds of services in recent
months.
On repeated occasions, they
were not able to provide enough
drivers and some services had to
be cancelled, with severe delays to
services, and they have fallen short
both of everyones expectations
and their franchise obligations.
Baker added that the
compensation represented a firm
yellow card for the transport
company.
The Department of Transport
also confirmed that London
Midland will hold the franchise
until September 2015, to give it
time to resolve the issues.
Go-Ahead to
pay 7m for
delayed trains
BY CATHY ADAMS
VOLVO Car Corporations owner
Zhejiang Geely has entered the race
to take over stricken UK black cab
maker Manganese Bronze, after it
emerged the Chinese company was
in talks to buy the Coventry-based
manufacturer.
Manganese, which has been mak-
ing the iconic black cabs through its
London Taxi Company since 1948,
fell into administration in October
after it was forced to pull its flagship
TX4 model following a steering box
malfunction.
Administrator PwC closed second
round bids two weeks ago. It is
understood Zhejiang Geely has sub-
mitted an offer to buy the remaining
80.03 per cent of the business it does
not already own.
It is not known
whether any
other buyers
Hopes rise for
black cab firm
after new bid
BY MICHAEL BOW
remain in the running.
PwC joint administrator Matthew
Hammond was unavailable for com-
ment last night.
Zhejiang Geely, which headquar-
tered in the Chinese province of
Zhejiang, signed a joint venture with
Manganese in 2006 to produce its
vehicles in China for the domestic
market.
Geely, which currently owns 19.97
per cent of Manganese through its
listed subsidiary Geely Automobile
Holdings, bought Swedish car maker
Volvo from Ford in August 2010 for
$1.5bn (921m). Manganese manage-
ment entered into talks with Geely in
October following the product recall,
in a bid to drum up support for a
bailout, a move that proved fruitless.
Joint administrator Matthew
Hammond previously said adminis-
trators were in advanced, positive
negotiations with bidders.
We are hopeful that we will
sell the business as a going
concern, he said.
AIRLINE boss David Lenigas
yesterday eschewed a traditional
executive salary by agreeing to
take home just 1 a year.
Lenigas, chairman of low-cost
African airline Fastjet, will take
the tiny annual salary plus
legitimately invoiced expenses.
I am passionate about the
possibility of Fastjet's ability to
change Africa's GDP growth
profile, the airline boss said
yesterday.
I have been doing business in
Africa for a number of decades
now and this is my personal way of
Fastjets Lenigas pays himself
just 1 a year... plus expenses
BY CATHY ADAMS contributing to changing life for
the better in Africa.
Lenigas added that low cost
travel can be one of the greatest
motivators of economic
development.
We can have a fundamental
profound effect on the
communities the airline will
serve, he said.
The Aim-listed airline launched
flights at the end of November
and carried almost 7,000
passengers on its maiden flights in
Tanzania. Earlier this week, it was
also eyeing a move into South
Africa through buying a carrier
out of bankruptcy.
FRIDAY 21 DECEMBER 2012
12
NEWS
cityam.com
David Lenigas is also executive chairman of Africa-focused explorer Leni Gas and Oil
An iconic London black
cab made by Manganese
TM and 2012 Apple Inc. All rights reserved. Subject to availability. Limited stock on a first come first served basis. Connection subject to status, credit check, Direct Debit and 24 month minimum term contract. Allowances are monthly. Calls/texts made in UK to standard UK landlines/ mobiles, special numbers chargeable. UK data.
Excessive usage policy applies. 99.99 for iPhone5 16GB. Terms apply, see o2.co.uk. Pay Monthly tariffs are going up in price. From 28 February 2013 theyll increase by 3.2% in line with inflation as at December 2012 when we made the announcement. Find out more at o2.co.uk/prices
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Visit o2.co.uk/iphone5
A special gift for
someone special. You
Treat yourself to unlimited calls, unlimited texts and a
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IN BRIEF
Mothercare pay irks investors
nMothercare endured a minor
shareholder mutiny yesterday as 12.8
per cent of investors voted against the
retailers plans to set up a long-term
incentive scheme for its new chief
executive. On top of a basic salary of
500,000 new boss Simon Calver
could earn up to 6.3m from long-term
incentives. He must break even in the
UK by 2015 to get his maximum bonus,
and has to invest his own money in
shares to qualify for the award.
Spain waves through 2013 budget
nSpains parliament formally
approved yesterday the budget for
2013, which aims at reducing the
countrys public deficit to 4.5 per cent
of gross domestic product from 6.3
per cent this year. Ministry budgets
will be slashed by 8.9 per cent for next
year and public sector wages frozen
for a third year as Prime Minister
Mariano Rajoy battles to trim one of
the biggest deficits out of all the
Eurozone states.
Carnival sees profits sink deeper
nCarnival yesterday reported a
sharply lower profit as revenue
continued to be hit by last Januarys
deadly capsizing of the Costa
Concordia cruise ship, and the leisure
operator said bookings for 2013 were
still lagging last year. Shares dived
around five per cent as the market
opened. The company reported net
income of $93m (56.7m) on revenue
of $2.66bn for the fourth quarter
ended 30 November.
HOUSE prices across the UK crept up
through 2012, according to data out
yesterday from property website
Zoopla, with London leaping further
ahead.
Mortgage lending increased again
in November, the Council of Mortgage
Lenders (CML) revealed, with the first
signs that the Funding for Lending
Scheme (FLS) may be having an effect.
Home purchase loans came in at
12.9bn last month, up a touch on the
12.78bn seen in October.
Recent signs of modestly improv-
ing housing market activity and the
likely increasing beneficial impact of
the Funding for Lending Scheme on
mortgage lending leads us to believe
that house prices will be broadly flat
over the coming months, said
Howard Archer from IHS Global
Insight.
Some support for house prices
should come from recent decent
employment growth and likely
extended low interest rates, added
London house
prices up 28k
through 2012
BY TIM WALLACE the economist.
The average price increased 2,298 to
228,226 in the UK as a whole a one
per cent rise through this year.
And London saw a 6.8 per cent
boom, taking average prices up
28,471 to 499,541.
The capital also saw rents rise by 0.2
per cent in November and 6.9 per cent
on the year to a new record of 1,104
per month, LSL Property Services
revealed today.
That again contrasts with the nation-
al picture where rents fell 0.4 per cent
on the month to 741 per month.
Gloomy start to Christmas as
shoppers look out for bargains
RETAIL sales are barely kept pace
with inflation last month,
according to official figures out
yesterday, with squeezed consumers
waiting for discounts rather than
splashing out for Christmas.
The quantity of goods bought in
November rose 0.9 per cent on the
year, while the amount spent
increased 1.5 per cent, showing a
small rise, the Office for National
Statistics (ONS) reported.
Over the same period prices
increased 0.5 per cent.
But sales were flat compared
with October and the amount
BY TIM WALLACE
spent fell 0.1 per cent on the
month.
Online sales rose 1.4 per cent on
the month and 0.5 per cent on the
year, taking the estimated average
online weekly spend in November to
711m.
Todays data shows a modest
increase in retail sales value but the
reality is that this is barely tracking
inflation, footfall is down and
volumes are flat, said KPMGs
David McCorquodale.
We are seeing the results of
shoppers quite simply having less
money to spend. Many of those
buying for Christmas are stretching
themselves to do so and are
therefore seeking out and waiting
for bargains. And, in response,
discounts have been available as
retailers have competed hard for
the festive pound through
November and December.
The longer term picture is
similarly gloomy. The ONSs studies
show retail sales largely unchanged
from 2007 through to 2011, with
only slow growth in the last year.
Households real incomes
defined as average weekly earnings
having accounted for inflation - are
still decreasing, which has led to a
fall in consumer buying power,
especially for the squeezed middle,
its report noted.
Mood across the pond lifted by
upwardly revised growth data
THE US economy grew faster than
previously estimated in the third
quarter of the year, official data
showed yesterday.
Americas GDP expanded at a 3.1
per cent annual rate in the three
months to September, the
Commerce Department said, a step
up from the 2.7 per cent pace it
reported last month.
Exports and government
spending provided a lift to the data.
But the boost is likely to be lost
amid slowing global demand and a
move towards tighter fiscal policy
BY CITY A.M. REPORTER
in Washington DC.
Separate data released yesterday
showed factory activity in the mid-
Atlantic region picked up this
month, while home resales in
November were the best in three
years. However, a rise in first-time
applications for unemployment aid
last week suggested job growth
remained modest.
The Labor Department said initial
claims for jobless benefits increased
17,000 to a seasonally adjusted
361,000, in the low end of the range
they held before superstorm Sandy
struck in late October.
The data covered the survey
period for the governments report
on December nonfarm payrolls and
suggested modest job gains.
The pace of hiring is still
disappointing, said Tanweer
Akram, a senior economist at ING
Investment Management in Atlanta,
adding that the pace of GDP growth
in the current quarter remains
quite soft.
Separately, the National
Association of Realtors said existing
home sales surged 5.9 per cent in
November to a seasonally adjusted
annual rate of 5.04m units. The
number was the highest recorded
since November 2009.
500 450 400 350 300 250 200 150 100 50 0
Southern house prices are still rising
thousands,
South West England
South East England
East England
West Midlands
North West England
North East England
Yorkshire &The Humber
London
Red-pricefalling
Green-pricerising
FEWER than seven in ten trains
were on time this year, according
to Network Rail data out yesterday.
New statistics show for the first
time how many rail services make
it to their stops early or within one
minute of the operators schedule.
Just 69.2 per cent of trains were
this punctual in the year to 8
December. This compares to 91.5
per cent that were punctual within
five minutes for regional services
or ten minutes for long distance
routes the traditional measure of
Network Rail reveals that just
seven in ten trains are on time
BY MARION DAKERS
railway time-keeping.
Some operators barely scraped
50 per cent punctuality within one
minute of their planned arrival
times. Crosscountry, which
operates a network stretching from
Aberdeen to Penzance, posted an
annual average of 48.8 per cent,
while West Coast operator Virgin
Trains managed 54.1 per cent.
The Institute of Directors
slammed the figures as evidence of
poor value, but the Office of Rail
Regulation said the new
disclosures would help improve
services.
FRIDAY 21 DECEMBER 2012
14
NEWS
cityam.com
Almost a third of passengers have to wait longer than expected for their train to arrive
THE BANK of Japan delivered its
third shot of monetary stimulus in
four months yesterday, in a
prelude to more aggressive action
next year as it faces intensifying
pressure from the country's next
leader for bolder action to beat
deflation.
It also signalled setting a higher
inflation target at its next meeting
in January, when a new
government will be in place.
Shinzo Abe, whose opposition
Liberal Democratic Party (LDP) won
Sundays election, has put the
central banks independence on
the line by calling for a binding
two per cent inflation target,
double its current price goal.
Japans new government gets
cash boost from central bank
BY CITY A.M. REPORTER
Feeling the heat, the central
bank expanded its asset-buying
and lending programme by 10
trillion yen (73bn) to 101 trillion
yen, a widely expected move that
barely moved markets.
I take it as that the BoJ is
carrying out what we sought
during the election step-by-step,
Abe told a party meeting.
The incoming PM caused a brief
stir when he said that BoJ governor
Masaaki Shirakawa had telephoned
to inform him of the decision in
the morning when the policy
meeting was still taking place. The
LDP later said the remark was a
slip of the tongue and Shirakawa
told a news conference he made
the call in the afternoon, after the
meeting was over.
CONSUMER confidence in the
Eurozone improved slightly in the
final month of 2012, a prominent
survey suggested yesterday, but
remains considerably below its
long run average.
And a think tank focusing on
European politics predicted a
tough year ahead.
Next year is not only likely to
see domestic politics across the EU
clash with the economic realities
of the eurozone crisis and EU
integration, but also countries
increasingly being pitted against
one another, predicted Open
Europes head of economic
research, Raoul Ruparel.
Eurozone consumer confidence
ends the year in the doldrums
BY JULIAN HARRIS
Despite talk of a recovery,
growth is set to stall and
unemployment rise across the
continent.
Yet with the immediate crisis
fading, 2013 could see Europes
leaders resorting back to a routine
of kicking the can down the road,
Ruparel added.
Data released by the European
Commission yesterday showed
that consumer morale edged up to
an index reading of minus 26.6
this month, from a 42 month low
of minus 26.9 in November.
Decembers reading kept the
index substantially below its long-
term average of minus 13, noted
Howard Archer, chief economist at
IHS Global Insight.
FRIDAY 21 DECEMBER 2012
17
Obama barney
with Boehner
bumps stocks
U
S stocks rebounded from
early losses yesterday after
Republican House Speaker
John Boehner said he would
keep working on a solution to the
fiscal cliff while also slamming
President Barack Obamas approach
to budget talks.
NYSE Euronext was the S&P 500s
biggest gainer, surging 34 per cent
to $32.25 after Intercontinental
Exchange said it would buy the
operator of the New York Stock
Exchange for $8.2bn.
ICE shares shot up 1.4 per cent to
$130.10.
Republicans in the US House of
Representatives pushed ahead with
their own plan to avoid a series of
steep tax hikes and spending cuts
due in early 2013, complicating
negotiations with the White House.
Obama has vowed to veto the plan.
Investors have hoped for an
agreement soon between
policymakers, but progress has
been slow. Boehner said he
expected to continue to work with
Obama, but repeated his charge
that the president and Senate
Democrats were trying to slow
walk the country over the fiscal
cliff.
Speaker Boehner went on the air
and basically told us he doesn't like
what the Presidents doing or not
doing, and the markets rallied on
that, which was kind of weird, said
Stephen Guilfoyle, a trader at
Meridian Equity Partners.
The Dow Jones industrial average
gained 59.75 points, or 0.45 per
cent, to 13,311.72 at the close. The
S&P 500 rose 7.88 points, or 0.55 per
cent, to 1,443.69. The Nasdaq
Composite climbed 6.02 points, or
0.20 per cent, to 3,050.39.
B
RITAINS top share index steadied
around nine-month highs
yesterday, pausing within reach
of the 6,000 points mark.
Investors were discouraged from
pushing the market too much higher
by the lack of progress by US
politicians on a deal to avoid a fiscal
cliff of planned tax hikes and
spending cuts that threatens the
health of the worlds biggest economy
in 2013.
But many market players expect a
compromise will be found which,
combined with traditional seasonal
inflows from investors taking the final
chance to boost annual profits, could
give the stock market a fresh leg-up in
coming sessions.
The FTSE 100, which is up 1.7 per cent
so far this month, has posted gains for
the past nine Decembers.
People are pretty much resigned to
the fact that even if this fiscal cliff
agreement doesnt happen by the end
of the year, it will certainly happen by
the end of January, but that optimism
is waning slightly, said Zeg Choudhry,
head of equities trading at Northland
Capital Partners.
The UK blue chip index closed down
0.05 per cent or 3.3 points at 5,958.34,
in sight of the 5,977.82 nine-month
intraday high set the previous session.
Todays expiry of December options
could well galvanise the market into
trying the 6,000 level last seen in July
2011 given the concentration of bets
around that level.
And if it doesnt happen [today] we
may well get there next week
Choudhry added.
BESTof theBROKERS
Sportech PLC
14Dec 17Dec 18Dec 19Dec 20Dec
p 71.0
70.5
70.0
69.0
69.5
70.00
20 Dec
SPORTECH
Peel Hunt yesterday
raised its guidance from
hold to buy due to
the betting companys
7.6m acquisition of US
horce racing firm eBet. It
raised the target price
from 70p to 78p.
DASHBOARD CITY
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
FTSE
20Dec 14Dec 17Dec 18Dec 19Dec
5,980
5,960
5,940
5,920
5,900
5,958.34
20 Dec
Diageo PLC
14Dec 17Dec 18Dec 19Dec 20Dec
p 1,880
1,870
1,860
1,830
1,840
1,820
1,850
1,849.50
20 Dec
DIAGEO
JP Morgan Cazenove has
uploaded the drinks
company from
underweight to
neutral on an
improved pricing
environment in the US.
Target upped to 1,775p.
888 Holdings PLC
14Dec 17Dec 18Dec 19Dec 20Dec
p 123
122
121
118
119
116
117
120
117.25
20 Dec
888 HOLDINGS
Numis raised the price
target for the online
betting company from
120p to 145p, following
the companys new
poker and casino licence
in a German state. It
keeps abuy rating.
Squire Sanders
The law firm has announced
two appointments to its
financial services practice
group. Philippa Chadwick joins
as a partner from Berwin
Leighton Paisner, where she led
its project finance team. Paula
Laird joins as a banking and
finance partner from Wragge &
Co, where she was head of
banking. Laird has also held roles at Chartered Trust.
Barclays
Keshav Khanna has been appointed as a private banker,
focusing on resident non domicile clients, at the bank.
He joins from Merrill Lynch, where he worked as a private
banker for its ultra-high net worth clients.
Nutmeg
Sarah Butcher has been appointed head of compliance at
the online discretionary investment management firm.
She joins from PineBridge Investments, where she was
head of compliance for Europe, Middle East and Africa.
Butcher has also held roles at Deloitte and the FSA.
Taylor Wessing
The law firm has appointed Keith Barnett as a business
group director, covering real estate, finance, insolvency,
construction, environment and planning. He has been
head of real estate at Taylor Wessing since 2007, and
previously worked at DJ Freeman and Garretts.
TLA Worldwide
The sports marketing business has appointed Gareth
Jones as its chief financial officer. He was previously its
group financial controller. Jones joined TLA from Cenkos
Securities, and has also held audit roles at Ernst &
Young.
Valence Group
The specialist mergers and acquisitions investment bank
has appointed Akiva Mozes to its senior executive panel.
He was previously president and chief executive of the
diversified chemical manufacturer Israel Chemicals.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
CITY MOVES
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LONDONREPORT
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REPORT
in association with
in association with
Doddering fiscal cliff talks prevent
FTSE from jumping towards 6,000
A
HECTIC round of after-work
parties and shopping,
interspersed with a few brief
moments wondering where
the year went. Then a frenzy
of unwrapping, a battle in the
kitchen with a recalcitrant turkey, the
family lunch, a silly game, a
surreptitious snooze in the middle of
Pirates of the Caribbean. Christmas
has its routines, but every year need
not be the same. Here are three
things that shouldnt be missing
from your list this festive season.
INSPIRATION
Christmas entertainment is more
than reruns of The Guns of Navarone.
Two thousand years of Christian
celebration have inspired some of the
N
O REVIEW of the global
economy in 2012 could fail to
focus on Europes long-
running and ever-changing
debt crisis. The continent is
emerging from its most difficult year
since the birth of the euro. Its in a
better shape than many expected, but
European policymakers still face
formidable challenges in 2013.
The year has been bad, of course,
and the crisis has taken a major toll.
Back in September 2011, the
International Monetary Fund (IMF)
forecast that output in the Eurozone
would expand by 1.1 per cent in 2012.
The figure was revised down to a 0.4
per cent contraction in October.
Unsurprisingly, the damage has been
greatest in Greece. In October, the IMF
predicted that the countrys debt-to-
GDP ratio would rise to 152.8 per cent
by 2017, from 144.6 per cent in 2010
even after it pushed through the
largest restructuring of sovereign debt
in history.
And Greece wasnt alone. In south-
ern Europe, investors dumped sover-
eign bonds, as they worried more
cityam.com/forum
Ireland is a great
success story. Its current
account surplus is now
3.4 per cent of GDP
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

18
FRIDAY 21 DECEMBER 2012
DAVID POWELL
The euro heroically survived 2012
but new dangers await next year
about the return of capital than the
return on capital. The spread between
the five-year yield on the bonds of
Spain and Germany hit 7.28 percent-
age points in late July. The respective
figure for Italy was 6.03 points.
But a strong response was quickly
set in motion. European Central Bank
(ECB) president Mario Draghi tried to
calm investors in late July, promising
to do whatever it takes to save the
euro. And in the autumn, the Banks
governing council finalised details of
its programme to purchase govern-
ment bonds.
The promise to be a buyer of last
resort for Eurozone government debt
as long as the countries in question
agreed to external supervision
calmed investors. Draghi stemmed
bank runs in several peripheral coun-
tries, and the risk of the euro being
torn apart overnight by intense capi-
tal flight faded. As 2012 comes to a
close, the Eurozone has managed to
retain its 17 members, and the value
of the euro against the dollar is close
to unchanged.
But broader macroeconomic adjust-
ments have taken place in the back-
ground, and the needs of peripheral
countries for external financing have
drastically declined. Ireland has been
the greatest success story. The country
registered a current account surplus
of 3.4 per cent of GDP in the second
quarter of this year. This compares
with a deficit of 6.7 per cent of GDP in
the third quarter of 2008.
Spains current account deficit also
narrowed to 2.2 per cent of GDP by the
end of the third quarter of 2012, down
from 10.6 per cent in the second quar-
ter of 2008. And Portugals declined to
2.4 per cent of GDP from 12.6 per cent
at the end of 2008. Similar trends
were also reported in Greece and Italy.
But now weak growth stands as the
biggest threat to the future of the
Eurozone. The staff economists of the
Eurosystem comprised of the ECB
and the national central banks of
Eurozone countries lowered the
midpoints of their GDP forecasts for
2012 and 2013 to contractions of 0.5
per cent and 0.3 per cent respectively.
Even further forward, sluggish
European growth will continue into
2014, with growth forecast at a mid-
point of 1.2 per cent. Inflation, too, is
expected to fall below the ECBs
implicit target. The estimate for 2013
stands at 1.6 per cent for the year,
compared to a previous forecast of 1.9
per cent. The equivalent figure for
2014 is 1.2 per cent.
Subdued economic growth will like-
ly leave high Eurozone unemploy-
ment rates in an even worse shape.
Unemployment now stands at a
whopping 26.2 per cent in Spain; 26
per cent in Greece; 16.3 per cent in
Portugal; 14.7 per cent in Ireland; and
11.1 per cent in Italy. Low growth and
inflation will also leave high levels of
government debt vulnerable to
shocks, and open to questions of sus-
tainability.
This sorry economic situation is like-
ly to fuel protests across the affected
countries, as the unemployed clam-
our to return to work. Social unrest
may reinforce concerns about insol-
vency. Some electorates are increas-
ingly opposed to the spending cuts
required to put their governments
budgets back into the black.
In 2013, these medium to long-term
issues will return to the minds of
investors. Even once a sustainable
solution is found for Greece, and even
after next years elections in Germany,
the Eurozones troubles will be far
from over.
David Powell is a senior economist at
Bloomberg.
worlds greatest art. If you prefer to
take your Christmas story with a bit
more edge than Dickens offers, why
not head over to the Queens Gallery
to contemplate Bruegels brutal,
piercing Massacre of the Innocents?
Or pop into the National Gallery as a
break from your last-minute
shopping and experience the eerie
majesty of Piero della Francescas
Nativity, with its choir of angels
singing over an infant Christ, naked
on the ground. Or theres always that
irresistible moment in A Charlie
Brown Christmas where Linus recites
from the King James Bible.
If you take your Christmas without
religion, try Horaces wintry ninth
ode from 32BC there is no better
written invitation to uncork the good
stuff when the snow starts falling, or
to enjoy the pleasures of love while
you are young.
CHARITY
Your response to our Christmas
appeal raised over 1m, so this
scarcely needs saying. Thanks to your
help, more entrepreneurs in Africa
will be given the chance to create
wealth for their families next year.
Charity is not just given online but
also, as it were, hand-to-hand. That
spirit of kindness to one another can
be hard to maintain toward our
relatives by the end of a long
Christmas afternoon. At such times, I
turn to Marilynne Robinson, a great
modern writer who dramatises the
unfashionable challenge of virtue.
Nassim Taleb of Black Swan fame
prefers the Roman stoics. This year,
when a cousin lets you down in a
crucial Pictionary heat, just breathe
deeply, reach for the brandy and
remember that Christmas only comes
once a year.
PEACE
It Came Upon A Midnight Clear is my
favourite carol. Its lyrics warn that
the angels who visited the shepherds
at the first Christmas are still singing,
but our wrangling drowns them out.
It reminds me of the mediaeval
hermit Richard Rolle. After years of
solitary prayer, he claimed he was
singing in the celestial chorus while
still alive. Christmas is not just about
celebration with family and friends.
Its also an opportunity to turn off
the daily hubbub for a moment. We
may not hear the angels singing, but
we all deserve to enjoy a little
tranquillity.
However you choose to spend your
Christmas, may it be a merry one.
Heres to a healthy and prosperous
New Year.
Marc Sidwell is managing editor of City
A.M.
THE LONG
VIEW
MARC SIDWELL
Three messages to warm your spirits during the hectic Christmas period
MORNING UPDATE
A.M.
19
FRIDAY 21 DECEMBER 2012
The Forum is open for you to take part. Got a sharp comment on
one of todays columns? Do you have another subject you want
to share your opinion on? We want to hear your views.
Email theforum@cityam.com or comment at cityam.com/forum
The Russian way
[Re: Russian business stereotypes need to
be consigned to the distant past, yesterday]
For hundreds of years, Russia was part of
Europe and the wider international
community. Communism was a short
diversion and, since 1991, the countrys
integration has become more and more
obvious. On the one hand, this means the
West must better understand Russias own
specific cultural peculiarities. On the other,
Russian businesses must more actively
integrate themselves into international
markets. Oleg Deripaskas article is a step
forward especially his willingness to deal
with some challenging perceptions. But, as a
native Russian speaker in London, it is too
early to claim victory over stereotypes.
Dr DavidHerzog
Green industry
[Re: Green energy subsidies are failing to
deliver cheap low carbon power, Thursday]
Its all very well having well-meaning green
energy targets but, if they involve front-
loading the cost onto consumers, we have a
problem. The general tenor of European
energy policy has been to discourage
carbon emissions by making them more
expensive. Theyre therefore offshored to
countries which are not covered by the same
restrictions thereby destroying the
manufacturing base of European
economies. The US, on the other hand, has
managed to lower its carbon emissions by
making energy cheaper, largely through
shale gas. The country is now undergoing a
manufacturing renaissance.
MartinCooper
TOP TWEETS
Too much choice in the energy market? Lets
also cut the number of books in bookstores
and beers in pubs to help bewildered people.
@MarkJLittlewood
A budget with a 75 per cent levy on income
over 1m (814m) has been ratified by
France. What will happen to its businesses?
@dylsharpe
London is the most visited city on earth
16.9m people this year. Its also the most
populous city in Europe.
@MayorofLondon
2013 will be a make or break year for
Greeces future as a member of the
Eurozone.
@sunkyujacklee
Will 2012 be remembered by the public as
a good year for the coalition government?
YES
Its been a tough year for so many people the cost of living
continues to rise and the economy continues to flat-line at best.
Given that background, it might seem odd to argue that 2012 has
been a good year for the coalition. But it has. Indeed, I would argue
that 2012 is the year we rediscovered our self-confidence as a
nation. And most of that is down to the enormous success of the
Olympic and Paralympic Games almost universally regarded as
the greatest Games ever. Despite the difficult economic climate, the
UK showed to the world that its still capable of delivering a massive
event in a spectacular way. Theres also been some economic light
at the end of the tunnel. We are right to celebrate the growth in
private sector jobs. The coalitions drive to encourage this seems to
be bearing fruit, and it will hopefully facilitate ongoing recovery in
2013.
David Skelton is deputy director of Policy Exchange.
David Skelton
NO
Graeme Cooke
This year will be remembered for the double-dip recession almost
unthinkable 12 months ago. The coalitions economic strategy took a
major hit with the omnishambles budget, which quickly unravelled
as taxes on pasties, caravans and grannies dominated the news.
More seriously, the UK economy remains worryingly weak, with
growth and wages still stagnant. While Michael Goves star shone
even brighter, the governments domestic agenda drifted, with
decisions on childcare and social care kicked into 2013. The dynamics
of coalition politics seem to be doing damage to both partners, with
House of Lords reform and the boundary review both blocked as
each side cancelled the other out. Ukip moved from the fringes of
British politics towards the mainstream, overtaking the Lib Dems in
the polls and causing much concern on the Tory backbenches.
Graeme Cooke is research director at the Institute for Public Policy
Research.
RAPIDresponses
For centuries, Christmas was a mix
of new beliefs about baby Jesus and
old desires to get your rocks off once
a year.
In the Middle Ages, some European
communities dressed up as animals
at Christmas and performed lewd
acts with one another. There
emerged a Lord of Misrule, who
would make people do hilariously
humiliating things. And of course
there was gluttony. One Christmas,
Richard II held a party for 10,000 peo-
ple, for which 2,000 oxen were
slaughtered and 200 tonnes of wine
were served.
Then came the Puritans in the sev-
enteenth century, and the excesses
of Christmas were trimmed. Oliver
Cromwell stamped his boot on
Christmas debauchery. It was later
still, in the moralistic Victorian era,
that the idea of Christmas as a quiet
family affair emerged.
So todays eco-saddos are not
defending the true spirit of
Christmas, but rather the Puritanical
Christmas of relatively recent times.
But with one important difference.
Cromwells attack on Christmas was
popular because it was seen as an
attempt to rein in the behaviour of
the filthy rich. Todays miserabilists,
by contrast, attack ordinary folk
rather than kings for living large
over the festive season, which makes
it unlikely theyll ever be popular.
So let the lords of misrule, gluttony
and booziness reign this Christmas,
as they did for centuries.
Brendan ONeill is editor of spiked online.
BRENDAN ONEILL
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E
VERY December, eco-
miserabilists and
anti-consumerist
curmudgeons attack people
for indulging in Christmas-
time debauchery.
Fancying themselves as experts on
Christian festivals, these killjoys
inform the moronic masses that
boozing, overeating and splashing
out on pressies is not what
Christmas is supposed to be about.
Christmas, they declare, is meant to
be a time of reflection and goodwill.
As the Scrooges of the No Shopping
Day outfit put it, thanks to con-
sumerism we have all become soul-
less shoppers and partiers, and in
the process have forgotten the
divine humility of the manger. But
these party poopers dont know
their history. Because the origins of
Christmas lie precisely in debauch-
ery and indulgence, not humility.
Todays warriors for real
Christmas values would have us
believe that, for the best part of
2,000 years, people celebrated
Christmas by being nice and
restrained. Not so.
Christmas has its origins in the fes-
tival of Saturnalia, a stunningly
debauched Roman festival which
culminated in the Feast of the
Unconquerable Sun on 25
December. That day was a celebra-
tion of the resurgence of the Sun fol-
lowing the Winter Solstice, and it
was mental, properly Bacchanalian.
There was role reversal, with mas-
ters waiting on their servants, while
men dressed as women and every-
one ate rich foods and took part in
fertility rites (they had sex).
When Christianity became more
widespread, it co-opted this old festi-
val. It turned 25 December from a
festival celebrating the return of the
Sun to one commemorating the
birth of the Son. But much of the
sauciness of Saturnalia remained.
Dont be a misery:
Festive decadence
has a fine heritage
FRIDAY 21 DECEMBER 2012
21
CITYA.M.GUIDE TO GIVERS
cityam.com
CITYA.M.
Our guide to
20 of the worlds
top charitable
donors
GUIDETOGIVERS
2
0
1
2
W
ELCOME to City A.Ms second annual Guide
to Givers, bringing to the limelight
business individuals and organisations
that have donated not just their resources,
but also their time and effort towards improvements
for those less fortunate than themselves.
As belts are being tightened, public charitable
spending is understandably at a significant low
point, putting emphasis on private sector giving.
This years guide reveals our top 20 list of private
sector foundations and trusts from around the
globe, taking into consideration spending and the
implementation of grants. Keen to highlight the
altruism of the City, we have also put together a list
of 10 City of London donors.
The lists have been compiled after speaking to
several charity industry bodies, in addition to a
number of the givers themselves. The donation
figures for 2011 have been taken from each
foundations annual financial statement, and the
numbers have been verified by KPMG.
With any such list, our Guide to Givers is not
exhaustive. Any thoughts or improvements from any
industry experts or individual donors for future
editions are, of course, welcomed.
One or two organisations have been excluded
when it has been deemed that the money given
away is in some way related to the groups main
business.
While on the subject of charity, we would like to
thank all those who have responded to the City A.M
Christmas appeal so far and have made a donation
to the microfinance charity Opportunity
International, which helps build businesses and
encourages secure saving in Africa. So far the appeal
has raised over 1m, a figure that has surpassed
expectations.
We hope you enjoy the guide.
CITYA.M. has compiled the rankings of the charity sector's top givers. has verified the donation figures.
Researched and compiled by Tom Shepherd
Novamedia/Postcode Lotteries started the Dutch
National Postcode Lottery in 1989 to raise money for
global charities. Headed by chief executive Boudewijn
Poelmann (pictured), the organisation now runs five
separate charity lotteries across Europe, including
Britains Peoples Postcode Lottery.
Since inception, the lotteries have given 4.9bn
(4bn) to over 240 charities, including UNICEF, War
Child and Greenpeace, as well as providing publicity.
In 2011, the organisation gave 508m. 20 per cent of
every ticket sold by Peoples Postcode Lottery goes to
charity, with funds supporting causes in Great
Britain. Poelmann is chairman of City A.M.
Recent projects: 7m to Oxfam to connect remote
areas of north Uganda to the internet.
RACHEL FINDLAY
FRIDAY 21 DECEMBER 2012
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CITYA.M.GUIDE TO GIVERS
I
T IS widely recognised that this is
a tough time for the charity
sector in the UK. Public
donations to charities have fallen
by 20 per cent in real terms in the
past year, with 1.7bn less being
given. 81bn in spending cuts will
also have far-reaching consequences,
with a third of charities funding
(13.9bn) currently coming from the
government. These changes are
hitting charities hard, with one in
10 facing closure in 2013.
In times when funding is scarce,
the role private foundations play
becomes increasingly important.
Private foundations have a unique
position: decisions are made by
trustees who arent accountable to
shareholders or the public, meaning
their funding is independent,
flexible and can be redirected to
address the areas of greatest need.
One of the greatest advantages of
private foundations is their ability to
take risks. Accountable only to their
trustees, they can fund risky and
early stage projects. Charities need
to find new ways of tackling social
problems they need to innovate
but finding public sector funding to
do this can be difficult.
Private foundations can fund a
pilot programme to identify
whether the approach works. If it
doesnt, then lessons can be learned
and future programmes stopped; if
it does, an evidence base has already
been built and other funders can
help to fund at scale. Impetus, for
example, invests in early stage
organisations that are ambitious to
grow. In 2008, it invested in
IntoUniversity, which engages young
people from disadvantaged
backgrounds to attain a university
place and other chosen aspirations,
by offering long-term, out-of-school
study support. Prior to Impetus
investment, IntoUniversity operated
on one site and helped
approximately 700 people. By March
2012, it had expanded to three sites
and helped around 12,100 people.
Over this time, the charitys income
has grown from 0.16m to 1.84m .
Private funders also fund
grittier issues or those that are
deemed to be political, such as
asylum seekers, domestic violence,
offending and human rights. These
causes are harder to sell to donors
and often struggle for funding. For
example, the Diana Memorial Fund
supported the Prison Reform Trust
to dramatically reduce youth
custody over a period of five years.
Finally, with many charities facing
the withdrawal of statutory funding,
private funders play an important
part in deciding the future of these
organisations. Each foundation
needs to make a decision based on
the strength of each charity and the
context in which it is working. If the
charity is strong, private
foundations can offer a lifeline
during tough times.
With the various roles private
foundations can play, intelligent
funding has never been more
important. Private foundations need
to be well informed about the
issues they are funding and the
policy changes taking place. They
need to undertake detailed due
diligence before a funding decision.
Most importantly, foundations must
work together to recognise what
others are doing and avoid
duplication, and as a larger body,
raise the profile of the issues and
organisations they are supporting.
Rachel Findlay is head of funder
effectiveness at New Philanthropy Capital
Private philanthropy is more crucial than ever before
20 of the worlds largest donors
3
NOVAMEDIA / POSTCODE LOTTERIES
Netherlands
413m
The Bill and Melinda Gates Foundation was formed
in 2000 through the merger of the William H.
Gates Foundation and the Gates Learning
Foundation, adopting their previous agendas of
improving global health and education.
With offices in the US, India, China and UK, the
foundation has a global reach of over 100 countries
and total assets of $34.6bn (21.4bn), making it
the largest philanthropic organisation in the world.
Last year the foundation gave away grant
payments of $4.4bn.
The foundation is led by chief executive Jeff Raikes
and co-chair William H. Gates Snr, under the
direction of Bill and Melinda Gates and Warren
Buffet. In 2011, Bill Gates spoke at the G20 summit,
the first philanthropist to do so. I got the strong
impression that the leaders are very sympathetic
to the case that aid budgets should not be cut,
even as governments reduce their spending, he
wrote in his 2012 Annual Letter. However, this will
be possible only if their constituents understand
that aid, which is less than 1 per cent of the budget
in most countries, has a significant impact on
peoples lives.
Current projects: Providing internet access in
libraries of emerging countries. Helping farms in
Africa and South Asia boost incomes.
BILL AND MELINDA GATES FOUNDATION
US
2.7bn
Founded in the will of American businessman
and pharmaceutical philanthropist Sir Henry
Wellcome in 1936, the Wellcome Trust funds
scientific studies, biomedical research and has
influenced health policy across the world.
Based in London, the Wellcome Trust has net
assets of 12.4bn and donated 642m in 2011,
with focus towards research concerned with
human and animal health.
Sir Henry could hardly have imagined how
biomedical science would progress and change
in 75 years, wrote director Mark Walport
(pictured) in his 2011 Annual Report. We will
continue to fund excellent researchers who will
use all the tools at their disposal to make new
discoveries, develop better treatments and
improve health for people across the world.
The trust also dedicates itself to the public
understanding of medical science and history,
and has hosted a series of exhibitions at its
affiliated museum, The Wellcome Collection.
Recent projects: MRI scanner small enough to
use in neonatal intensive care units. Largest
ever clinical trial of patients hospitalised with
severe malaria - which led to revised
guidelines on the treatment of the disease.
2
THE WELLCOME TRUST
UK
642m
The Eli Lilly and Company Foundation was set up as a
philanthropic arm of American pharmaceutical giant
the Lilly Company in 1968. The foundation aims to
improve healthcare in low-income countries, aid
scientific research and enhance US public education.
Based in Indianapolis, the foundation has focused on
improving the understanding of chronic and non-
communicable diseases such as diabetes, cancer and
mental health. It has also provided hunger relief,
disaster relief and has supported community
developments in Indianapolis. In 2011, the foundation
gave $597m (368.2m) towards these causes.
Recent projects: Indiana Science Initiative aims
to improve scientific teaching in the state.
Improving education for underserved children.
4
ELI LILLY AND COMPANY FOUNDATION
US
368.2m
Established in 1936 by a gift of $25,000 (15,424) from
Edsel Ford, son of motoring pioneer Henry Ford, the
Ford Foundations founding charter stated that the
resources should go towards scientific, educational
and charitable purposes, all for the public welfare.
In 2012, the foundations remit has been stretched to
include the promotion of human rights, economic
fairness and supporting sustainable development, while
the reach of the organisations philanthropic arm has
also grown, with projects in North America, Latin
America, Africa and Asia. In 2011, the foundation gave
grants of $413m. Luis A. Ubinas (pictured) is the
foundations ninth president.
Recent projects: Alleviating poverty caused by
the early marriage of girls.
5
FORD FOUNDATION
US
254.7m
1
Its a great facility. I only wish there were more things
like this available to me when I was young
Not available in Northern Ireland. Peoples Postcode Lottery manages multiple society lotteries promoted by diferent charities supporting a range of good causes. For details on which
society lottery is running each week visit www.postcodelottery.co.uk/society
Peoples Postcode Trust
and Peoples Postcode Lottery
Ledley King,
Footballing legend and Tottenham Hotspur Foundation Ambassador
Thanks to players 21.9 Million has been raised for good causes by players of
Peoples Postcode Lottery. By playing you support hundreds of good causes.
Visit www.postcodelottery.co.uk to find out more.
Peoples Postcode Trust has funded over 900 projects that improve local communities including the Cruyff Court Tottenham Hotspur in Haringey
FRIDAY 21 DECEMBER 2012
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cityam.com
CITYA.M.GUIDE TO GIVERS
Robert Wood Johnson, whose father and
uncles created Johnson & Johnson and
invented the worlds first antiseptic wound
dressing, founded the Robert Wood Johnson
Foundation (RWJF) in 1972. His desire was to
improve the health and healthcare of all
Americans; how it was distributed, paid for
and the impact that it had for patients and
their families.
RWJF has continued this aspiration and in
2011 donated $327m (201m) towards
healthcare developments in the US.
We so far have invested a total of $9bn,
delivering on our promise to make health
care better and to improve the health of
individuals and families, entire communities
and populations, said president Risa
Lavizzo-Mourey (pictured) in her end of year
letter.
The foundation supports both private and
public healthcare organisations, with 20 per
cent of the foundations grants going
towards research on public health.
Recent projects: Reversing childhood
obesity with healthy schools
programmes. Advancing end-of-life
health care quality.
ROBERT WOOD JOHNSON FOUNDATION
US
201m
6
Breakfast cereal entrepreneur Will Keith
Kellogg founded the WK Kellogg Child
Welfare Foundation in his hometown of
Battle Creek, Michigan, in 1930. Despite the
name since being shortened to the WK
Kellogg Foundation, its focus remains wholly
concerned with children and education.
In 2011, the WK Kellogg Foundation gave
$307m (189.3m) to a series of programmes
that work towards improved education,
healthy lifestyles, secure families and racial
equality for all children and their families.
The foundations work predominantly takes
place in the US, Latin America and Africa,
and is currently overseen by president
Sterling K. Speirn, who acknowledged in the
2011 Annual Report the importance of their
work during tough economic times.
Economic pressures almost certainly will
result in reduced public sector funding. We
are addressing this challenge, by ensuring
that our limited resources work as
effectively and efficiently as possible.
Recent projects: Improving childrens
access to healthy foods. New Options
Initiative aims to help out-of-work 16-
24 year-olds find career opportunities.
WK KELLOGG FOUNDATION
US
189.3m
7
The Andrew W Mellon Foundation was
formed in 1969 through the merger of the
Avalon Foundation and the Old Dominion
Foundation, whose roots go back to 1940.
The two foundations were owned by siblings
Paul Mellon and Alisa Mellon-Bruce, who
named the new amalgamative foundation
after their late father, a renowned banker and
politician.
With offices in New York, Princeton and New
Jersey, the foundation distributes its grants
into the fields of higher education; scholarly
communications and information technology;
art history, conservation and museums; the
performing arts and environmental
conservation. Last year it gave $243m
(149.9m) towards these areas.
Fifth president of the foundation, Don M.
Randal (pictured) has held the position for
the past five years, having previously served
as the president of the University of Chicago.
Recent projects: supported performing arts
programmes, such as the Washington Drama
Society and the New York Live Arts. Arts
programmes at universities of
Oxford, Princeton, Michigan and
Virginia received funding.
Supported South African university
programmes.
ANDREW W MELLON FOUNDATION
US
8
The Gordon and Betty Moore Foundation
was established in 2000 by one of the
founders of Intel, Gordon E Moore, and his
wife. Their founding vision was
significant, lasting and measurable
results in environmental conservation,
science, patient care and the San
Francisco Bay Area. The foundation gave
$223m (137.5m) to these causes in 2011.
Based in Palo Alto, California, the group is
part of a new wave of Silicon Valley-based
foundations. President Steve McCormick
(pictured) wrote: Our community is
poised to be the vanguard for
philanthropy and become a truly game-
changing force, creating solutions to
our most critical social problems.
Recent projects: Andres-Amazon
initiative promotes forest conservation.
GORDON AND BETTY MOORE FOUNDATION
US
137.5m
9
Technology entrepreneurs David and
Lucile Packard created the David and
Lucile Packard Foundation in 1964, as a
focused outlet for their philanthropic
work. The foundation took a large
concern in improving the lives of children
and their families, but also covered
conservation, science, health and
community issues. In 2011, the foundation
donated $212m (130.7m) to these areas.
Headquartered in California, the
organisation is still considered a family
foundation, with many of the Packards
children and grandchildren sitting on the
board of trustees. Carol S. Larson has held
the position of president since 2004.
Recent projects: US sex education
programme. Conservation of the
coastal ecosystem of California.
DAVID AND LUCILE PACKARD FOUNDATION
US
130.7m
10
Founded in the US in 1970, the John D
and Catherine T Macarthur Foundation
now has operations running in over 50
countries, including Mexico, Russia, India
and Nigeria. Property and business
tycoon John D Macarthur started the
foundation with his wife to make good
use of his wealth, and gave 92 per cent of
his $1bn fortune when he passed in 1978.
Created to promote human rights, global
conservation and security, the foundation
remit has since expanded to include
education, healthcare, media, arts and
cultural projects. Led by president Robert
Galluci (pictured), the foundation gave
grants of $205m (126.4m) in 2011.
Recent projects: supported Nigerias
free election last year through media
monitoring and logistical assistance.
JOHN D AND CATHERINE T MACARTHUR FOUNDATION
US
126.4m
11
The William and Flora Hewlett
Foundation was founded by computer
entrepreneurs William and Flora Hewlett
and their son, Walter, in 1967. The
foundations goals include helping to
reduce global poverty, limiting the risk of
climate change and supporting education
and performing arts in their founding
home, California.
With assets totalling $7.2bn (4.4bn), the
foundation disbursed $203m in grant and
gift payments in 2011. It was to become a
year of transition for the foundation, as
the presidency was handed over to Larry
Kramer (pictured) in September 2012.
Recent projects: Restoration of 19,000
acres of the salt ponds in San Francisco
Bay. Awarded $3.5m to establish the
California Education Policy Fund.
WILLIAM AND FLORA HEWLETT FOUNDATION
US
152.2m
12
149.9m
With over 2 million received from players of Peoples Postcode Lottery, Maggies Cancer Caring Centres is able to run a centre for four years such as the one located
at Charing Cross
The work that Maggies does to help people affected
by cancer is so important
Not available in Northern Ireland. Peoples Postcode Lottery manages multiple society lotteries promoted by diferent charities supporting a range of good causes. For details on which
society lottery is running each week visit www.postcodelottery.co.uk/society
Maggies Cancer Caring Centres
and Peoples Postcode Lottery
Aggie McKenzie,
Maggies Ambassador and broadcaster
Thanks to players 21.9 Million has been raised for good causes by players of
Peoples Postcode Lottery. By playing you support hundreds of good causes.
Visit www.postcodelottery.co.uk to find out more.
FRIDAY 21 DECEMBER 2012
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CITYA.M.GUIDE TO GIVERS
Retailer Sebastian Kresge started the Kresge
Foundation in 1924 with a stock gift of $1.6m
(985,000) with the intention to help people
on lower incomes. Now 88 years old, the
foundations remit has branched out to seven
key areas: community, education, environment,
arts, education, health, human services and the
foundations home city, Detroit.
The foundation donated $152m last year, which
included funds towards the long-term
redevelopment of Detroit; the citys green
credentials, healthcare, education and arts
programmes are all to be improved. This move
into strategic philanthropy is new ground for
the foundation; something that president Rip
Rapson (pictured) hopes to continue.
Recent projects: $21m for the betterment of
art spaces in the US. $2.7m given to support
higher education in Africa.
THE KRESGE FOUNDATION
US
93.7m
13
The Knut and Alice Wallenberg Foundation was
founded in 1917 by chairman of Stockholms
Enskilda Bank, Knut Wallenberg, with an initial
donation of SEK 20m (1.8m). It was
established with the aim of enhancing scientific
research, teaching and education in Sweden.
Based in Stockholm, the foundation granted
funds of SEK 752m last year. The majority of the
foundations grants are donated to Swedish
universities and academies, either in the form
of project grants or equipment.
The foundations chairman, Peter Wallenberg
(pictured), is a direct descendant of Knut
Wallenberg, with several other members of his
family sitting on the board.
Recent projects: Grants given to University of
Gothenberg, Stockholm University and
Swedens natural history museum. Studies
into degenerative brain diseases supported.
KNUT AND ALICE WALLENBERG FOUNDATION
SWEDEN
70.1m
14
The Gatsby Charitable Foundation was started
in 1967 by David Sainsbury (pictured), great
grandson of supermarket founder John James
Sainsbury, agreeing its first grant payment of
50 to the Liverpool School of Tropical
Medicine. Sainsbury is now settler.
One of the Sainsbury Family Charity Trusts, the
foundation has distributed more than 1bn to
charitable projects. The organisation concerns
its donations in six areas: plant science
research, neuroscience research, the economic
development of Africa, science and engineering
education, public policy research and the arts.
Last year, the foundation donated 69m.
Recent projects: official launch of the Sainsbury
Laboratory at Cambridge University - a plant
development research facility. $25m
(15.4m) private equity fund focused on
small agricultural businesses in East Africa.
GATSBY CHARITABLE FOUNDATION
UK
69m
15
Based in Stuttgart, Germany, the Robert Bosch
Foundation came into being following
directions outlined in the will of German
technology entrepreneur Robert Bosch. The
foundation provides funding on international
relations, science and research, education,
health issues and humanitarian causes.
The Robert Bosch Foundation has given over
1bn (810m) since its founding, and last year
spent 68m on charitable causes.
The organisation employs over 130 people and
is overseen by chairman Dieter Berg (pictured).
The foundation has helped with the training of
healthcare assistants and nursing for the
elderly and disabled. It has also offered
scholarships in civil engineering, from which
Bosch himself developed his trade.
Recent projects: AcademiaNet: promotes the
awareness of outstanding female scientists.
ROBERT BOSCH FOUNDATION
GERMANY
54.6m
16
The Leverhulme Trust was established in 1925
with the passing of soap entrepreneur Lord
Leverhulme, who had outlined plans in his will
for a proportion of his business interests to go
towards charities and scholarships for the
purposes of research and education.
Situated in London, the trust now provides
funding for a number of awards across all
academic disciplines, including research grants,
fellowships, academic collaborations, prizes
and arts grants. In 2011, the Trust gave 53m.
Chairman Sir Michael Perry argued in the 2011
annual report the importance of private
foundations spending on research, particularly
as they can invest in high-risk projects that
public funding might shy away from.
Recent projects: The Leverhulme Arts
Scholarship: set up to encourage students
with innovative artistic development.
THE LEVERHULME TRUST
UK
53m
17
Based in London, The Wolfson Foundation was
established in 1955 by Scottish businessman Sir
Isaac Wolfson. With the help of his wife and son
(Lord Leonard Wolfson, who was chairman of
the foundation until his death in 2010), Wolfson
created the charity to fund progress in key
areas such as science, health, medicine,
education and the arts.
Last year the foundation gave 49.6m towards
these causes, with a particular focus on medical
research and healthcare.
The board of trustees still features members of
Wolfsons family, including current chairman
Janet Wolfson de Botton. Paul Ramsbottom
(pictured) is the foundations chief executive.
Recent projects: 20m to University College
London to set up the Wolfson Experimental
Neurology Centre. The National Theatre
received 1m for major redevelopment.
THE WOLFSON FOUNDATION
UK
49.6m
18
The Garfield Weston Foundation was founded
in 1958 by Canadian businessman Williard
Garfield Weston (right). Creator of Associated
British Foods, Weston endowed the foundation
with family-owned company shares, before
being succeeded as chairman to both the
company and foundation by his son Garfield H
Weston.
Based in London, the foundation supports
projects in several categories, including arts,
education, medical, religion, youth, community,
welfare and the environment. In 2011, it gave
46.1m worth of grants. The foundation is one
of a few to support religious causes, with
significant funding spent on the restoration of
some of the UKs oldest and listed churches.
Recent projects: 3m to National Theatre
and Tate Britain improvements. Grants to
Westminster Abbey and Salisbury Cathedral.
GARFIELD WESTON FOUNDATION
UK
46.1m
19
The Deutsche Fernsehlotteries (German TV
Lottery) roots go back to 1948, to a charity
known as A Place In The Sun, which provided
vacations for underprivileged children from
Berlin. In 1956, the charity held the nations
first TV lottery with broadcaster ARD.
The lottery has since undergone numerous
name changes, and in 2012 became the German
Television Lottery. While its charity funding is
still prioritised towards children, the lottery has
also supported rehabilitation centres, disabled
facilities, hospices and special education.
The non-profit lottery vows to donate at least
30 per cent of its proceeds to charitable causes,
and has given a total of 1.4bn (1.1bn) to more
than 6,350 institutions since its inception. In
2011, the charity lottery gave away 53m.
Recent projects: development of St. Anna
Munderkingen dementia community centre.
DEUTSCHE FERNSEHLOTTERIE
GERMANY
43.1m
20
Ten top City of London givers
FRIDAY 21 DECEMBER 2012
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cityam.com
CITYA.M.GUIDE TO GIVERS
The Icap Charity Day celebrated its 20th anniversary this December,
raising 11m for charities in the process. The annual pre-Christmas
event is a celebrity-studded occasion on which all revenues and
commissions from the worlds leading interdealer broker are donated.
Chief executive Michael Spencer has played a major role in the success
of the event, which has raised over 100m since its inception in 1993.
MICHAEL SPENCER
BROKING
CHERYL CHAPMAN
L
OOK out your office window
and you will see a
philanthroscape the Citys
bridges, hospitals, schools,
prisons, alms houses and churches
we walk past everyday were built on
the donations of the wealthy
businessmen of yesteryear,
including its most famous lord
mayor Dick Whittington.
The Citys rich philanthropic
tradition continues today but
quietly. While the City gives
hundreds of millions of pounds
every year through corporate
programmes, individual donations,
charitable grants, pro-bono work
and volunteering, it is not a
narrative that makes it into the
wider world. The Philanthropy in
the City story is drowned out by
the din of demonisation of bankers
that dominates the media.
Yet, in an age of austerity and an
era of inequality, never has it been
more important to celebrate and
champion our giving for the good
of the Citys reputation, its business
and for society. Alongside the
potential for a good business in
philanthropy, there is a dawning
realisation that philanthropy and
corporate and social responsibility
make for good business.
From the many hundreds of
corporates that engage with their
communities, there is a growing
body of evidence that such
programmes improve employee
retention, attract new clients and
enhance reputation a particularly
vulnerable asset in the aftermath of
the banking crisis.
This sentiment is the springboard
for the campaign City Philanthropy
A Wealth of Opportunity, funded
by The City of London Corporations
charity City Bridge Trust, that aims
to capitalise on philanthropy for the
good of society, donors, business
and the City.
Building on existing generosity,
and acting as a hub for all things
philanthropy in the City, the
campaign aims to inspire, educate,
inform, facilitate and connect
giving and givers, particularly the
Citys next generation. It also
positions London as a potential
capital of global philanthropy for
international givers, highlighting
its local supply of world-class
professional expertise, philanthropy
friendly tax and policy rules, and its
strategic geographic advantages.
We are already seeing a
groundswell of new philanthropy
among young professionals, who
are forming networks that allow
them to socialise around giving to
causes that motivate them. The
Young Philanthropy Syndicate, led
by Deloittes Adam Pike and PwCs
Michael Harris, The Bread Tin, The
Philanthropy Club and the City
Philanthropy Campaigns own City
Funding Network, which raised
27,000 in an hour at its last event,
bring fun and friendship to the
serious business of giving. They also
show philanthropy is not just for
the wealthy you can join these
strategic philanthropists for less
than a cup of coffee a day.
Our aim over the next few years,
with the backing of the current lord
mayor Roger Gifford and his City in
Society appeal, is to put
philanthropy back on the Citys
agenda and to champion the win,
win, win opportunity for society,
business, givers and the City.
Cheryl Chapman is philanthropy
manager for The City of London
Corporations charity, City Bridge Trust.
Putting philanthropy at the top of the Citys agenda
Arpad Busson has used his City status to promote his childrens
charity ARK. The charitys annual gala dinner is one of the biggest
events on the City calendar, and this year raised 14.5m for the
charity. ARKs work focuses on health, education and child protection,
and has opened academies in the UK. Founder of hedge fund group
EIM, Busson had a baby girl in July with actress Uma Thurman.
ARPAD BUSSON
HEDGE FUNDS
Hedge fund manager Christopher Cooper-Hohn co-founded the
Childrens Investment Fund Foundation (CIFF) in 2002 with his wife
Jamie Cooper-Hohn. The foundation receives a portion of profits from
Cooper-Hohns London-based hedge fund The Childrens Investment
Fund Management. Since starting, CIFF has given over 175m. The
charity directs its funding towards children living in poverty.
CHRISTOPHER COOPER-HOHN
HEDGE FUNDS
Though born in the US, a large share of John Studzinskis philanthropy
takes place in the UK. In 2001, he founded the Genesis Foundation,
which supports young individuals in the arts and this year launched
the Genesis Prize, a biennial award of 25,000. Studzinski is senior
managing director at Blackstone Group and serves on the board of
several institutions such as CREATE and The Royal College of Art.
JOHN STUDZINSKI
PRIVATE EQUITY
British venture capitalist Jon Moulton is the founder of private equity
firm Better Capital. The former Alchemy chief has given regular
donations towards medical research and is a trustee of the UK Stem
Cell Foundation. Moulton set up his own medical research foundation,
the J P Moulton Charitable Foundation, and sits on the board at Great
Ormond Street hospital. He donated around 4m this year.
JON MOULTON
PRIVATE EQUITY
Brought up near Middlesborough, Jonathan Ruffers philanthropic
focus is on deprived areas of the North East, and this year gave 1m to
the County Durham Community Foundation. In 2011, he paid 15m to
save a set of Christian paintings at Auckland Castle, where he plans to
spend a further 18m on developments. Ruffer is founder of boutique
investment house Ruffer, but took a step back from his role this year.
JONATHAN RUFFER
INVESTMENT MANAGEMENT
In 2012, Simon Borrows was appointed chief executive of 3i, having
joined the private equity and venture capital firm as chief investment
officer in 2011. Borrows has his own foundation, which distributes
funds to art charities and provides bursaries for children who cannot
afford public school. He sits on the advisory board of The National
Theatre, to which he has contributed heavily in recent years.
SIMON BORROWS
M&A; PRIVATE EQUITY
Former chairman of the British insurer Prudential, Harvey McGrath
stepped down in 2011. He is currently chairman of governors at
Birkbeck College and trustee of several charities, including the Royal
Anniversary Trust and iCould. He is also a founding member of New
Philanthropy Capital. In October 2012, Harvey was announced as new
chairman of Heart of the City, which encourages CSR in businesses.
HARVEY MCGRATH
INSURANCE
Founder of the Travelex Group, Lloyd Dorfman is heavily involved with
arts philanthropy and is a significant donor to institutions such as The
Royal Opera House, the Roundhouse and Saddlers Wells. Most
notably, Dorfman has made substantial donations to the National
Theatre, where he has sat on the board since 2007. In 2011, Dorfman
was awarded the Prince of Wales Medal for Arts Philanthropy.
LLOYD DORFMAN
CURRENCY EXCHANGE
Michael Hintze is the founder of global multi-asset management firm
CQS. Together with his wife Dorothy, Hintze established the Hintze
Family Charitable Foundation in 2005, which has supported over 150
charities. The Australian is known for making regular donations to the
arts, supporting institutions such as the Old Vic theatre, V&A Museum
and the National Gallery, where he serves on the board of trustees.
MICHAEL HINTZE
HEDGE FUNDS
Thanks to players 21.9 Million has been raised for good causes by players of
Peoples Postcode Lottery. By playing you support hundreds of good causes.
Visit www.postcodelottery.co.uk to find out more.
PROCEEDS
FROM TICKET SALES
HELP TO FUND
WWFS WORK IN
SCOTLAND

WWF and Peoples Postcode Lottery
Not available in Northern Ireland. Peoples Postcode Lottery manages multiple society lotteries promoted by diferent charities supporting a range of good causes. For details on which
society lottery is running each week visit www.postcodelottery.co.uk/society
Richard Crossen
WWF has received over 400,000 for its work
Never in human history has there been a more important
moment to cherish natural diversity
Nick Ross,
WWF Ambassador and presenter
For large home owners its heads I win tails you lose
In the wake of the
autumn statement,
Amelia Brust mulls
the impact of
George Osbornes
plans on both the
property sales and
rental markets
29
FRIDAY 21 DECEMBER 2012
cityam.com
PROPERTYAUTUMN STATEMENT
Q
There was a lot to read in the
autumn statement. I live in a
big house and need to know if
I have anything to worry about.
A
To find out if you are going to
be liable for a new levy, you
will have to look at your
property ownership carefully. If
youve been living in a house that
is owned by your family trust or
another entity, youre likely to have
two choices. You could carry on
living in it but pay a new annual
levy from April 2013, which will
range from 15,000 to over
100,000, depending on the value
of your home. From the same date
youll have to pay capital gains tax,
28 per cent currently, on any
future gain. That could be a large
amount of money payable when
the house is sold in the future.
If you decide you dont want to do
that and prefer to put the house in
your own name, you suddenly fall
foul of inheritance tax and again,
that could be substantial.
The awful fact is, if you want to
avoid losing a lot of money from the
new regime, youd better make sure
you dont die in your house. DIRECTOR, DOUGLAS AND GORDON
ED MEAD
Q
A
and
C
HANCELLOR OF the
exchequer George Osbornes
autumn statement, released
last month, included a
5.5bn infrastructure package,
bringing infrastructure investment
to 33bn a year. The funding
includes support for long-term
private investment in new roads,
science, free schools and
academies.
Osborne also opted to keep
property taxes and the rate of
stamp duty unchanged, something
some estate agents have called a
missed opportunity.
Nick Barnes, head of research for
Chesterton Humberts, was
disappointed in what he called the
statements lack of any new
measures aimed specifically at
helping first time buyers. A nice
gesture would have been to re-
introduce the stamp duty land tax
holiday at a realistic level of say
200,000 nationally and 375,000
in London for first time buyers.
The announced funding for
infrastructure is expected to
impact house prices, particularly
for developments near major
transport links.
While he said the statement
lacked ideas to help stimulate the
housing sector, Robert Bartlett,
chief executive of Chesterton
Humberts, supported the
statements proposed 1bn funding
for the Battersea Power Station
redevelopment. I dont think it
would be much of an exaggeration
to say that the extension of the
Northern Line to Nine Elms and
Battersea Power Station will act as
the catalyst to one of the most
significant rises in property values
to be seen in a single area of
London over the next few years,
Bartlett said.Better accessibility to
this area will attract more home
owners, businesses and local
employment and have a significant
positive effect on the local
economy south of the River. From a
property value perspective, these
are all factors that have a
significant impact on driving
value.
The Royal Town Planning Institute
(RTPI) welcomed the investments in
infrastructure, including the roll-out
of broadband in the east of the
country, which could make areas
and properties more appealing to
buyers. RTPI president Colin Haylock
said: We are also glad there was no
new reform or adjustment of the
planning system announced.
Planners, developers and
communities need a period of
stability and certainty in order to
deliver the growth that is sorely
needed.
Some parts of the rental sector
are waiting to see if there will be
an impact on the market caused by
the decision to freeze housing
benefits. Osborne said the local
housing allowance rates will be
uprated in line with the existing
policy next April and then we will
cap increases at one per cent in the
two years after that.
The chancellor said the move is
intended to help curb welfare
spending, of which housing benefit
is the third-largest component. For
this measure, 30 per cent of the
savings will be used to exempt
areas with the highest rent
increases from the new cap.
David Orr, chief executive of the
National Housing Federation, said:
We welcome the measures
announced to boost housing
supply. However, we are concerned
about the benefits
announcement.
Estate agents have
called Osbornes
autumn statement a
missed opportunity
We would have
liked to have seen a
re-introduction of
the stamp duty
land tax holiday for
first time buyers

What the autumn statement

means for property players
30
FRIDAY 30 DECEMBER 2012
cityam.com
PROPERTY
PROPERTY OF THE MONTH
THERE ARE 30 per cent fewer
highly saleable houses coming
to the market in London
compared to this time last year.
This is a result of concerns over
the economy and jobs, people
having no other place to put
their money and expectations of
price increases in the 1-2m
price bracket.
Some who are looking to move
out of London are renting out
their houses and renting in the
country, further exacerbating
the lack of stock.
In contrast, demand from
domestic and international
buyers is constant and sealed
bids are now commonplace for
the best quality homes.
Pension changes are having a
long-term effect on the property
market, with many now viewing
it as a better long-term bet.
Diminishing pensions are also a
blow for future first time buyers
and the bank of mum and dad
may well find they cant afford
to help first-time buyers in the
way they have in the past.
Some prospective sellers are opting to rent out their London property and rent a house in the country
DOUGLAS & GORDON AVERAGE LONDON SALES PRICE INDEX
Q4 2011 Q1 2012 Q2 2012 Q3 2012
1 bed flat 387,500 404,167 408,333 410,833
2 bed flat 579,583 608,333 620,833 634,167
3 bed house 1,277,083 1,340,000 1,367,917 1,369,167
4 bed house 1,933,333 2,006,250 2,025,000 2,110,833
Supply
500
400
300
200
100
0
Jan JunJul AugSepOct NovDec FebMar Apr May
2010 2011 2012
July 2010
high(448)
Dec 2006
low(127)
Supply & Demand
Jan Jun Jul Aug Sep Oct Nov Dec Feb Mar Apr May
1600
1400
1200
1000
800
600
400
200
0
Demand 2012
Demand 2011
Supply 2012
Supply 2011
1200
1000
800
600
400
200
0
Demand
Jan JunJul AugSepOct NovDec FebMar Apr May
2010 2011 2012
Jan2012
high(1029)
Dec 2011
low(211)
LONDON
BAROMETER
ED MEAD DIRECTOR OF DOUGLAS & GORDON
B
UILT FOR George Villiers,
Duke of Buckingham in the
17th century, Essexs
Mansion House was severely
damaged by Parliamentarians in
the civil war. It was resurrected by
Daniel Finch, second Earl of
Nottingham and sixth Earl of
Winchelsea, in 1694. The new
house was built over the next six
years. It was even considered for
the Duke of Wellingtons palace
before he was given Stratfield Saye
in 1817. It weathered the years
until 1908 when, during his stay,
Winston Churchil was accused of
starting a fire that damaged the
building, leading to its renovation.
In short, if it is history youre
after, look no further.
In the 1990s, the house was
divided into six wings designed by
architect Kit Martin. The
Palladian structure is in an
H-plan and has projecting
end pavilions, while its
symmetrical wings and
outbuildings form a
cour dhonneur, or
three-sided courtyard.
High ceilings and a
large sitting room give
the house a light and
comfortable feel, with
oak panelled walls and
part-glazed doors leading
to a private garden and patio.
On the ground floor, the main
entrance hall leads to an oak-
panelled reception room. Adjacent
is a study, with a view of the
courtyard. The west-facing kitchen
is flooded with natural light, and
is large enough for family dinners
or a gathering with friends. The
dining room, meanwhile, faces the
Rutland Water reservoir. West
Wing can also be accessed from
the north side of Mansion House,
via the stone steps leading up to
the rear door.
The guest bedroom upstairs is
connected to the formal drawing
room by an oak-panelled corridor.
The drawing room has an open
fireplace and 25-mile views of
Rutland Water and the
countryside. The second floor
contains the master bedroom and
one guest bedroom. The top
staircase leads to a roof terrace
with more impressive views of the
countryside.
Two more bedrooms sit on the
lower ground level, along with a
gym and shower room and utility
room. It is fitted out with oak
staircases and a lift makes all
floors wheelchair accessible.
In addition, 67 acres of
communal gardens and grounds
surround Mansion House, while
the South Terrace is restricted to
only six residents.
The house is just 10 minutes
from the A1 and 20 minutes from
the M1, while Peterborough
station has direct links to Kings
Cross. Oakham station has trains
to Peterborough, Stanstead,
Birmingham and Leicester.
For more information go to
www.chestertonhumberts.comor call (0)20 7594 4746.
Amelia Brust
The property is located two
miles northeast of Oakham, on the
highest point in Rutland's
countryside. The reservoir is a
popular destination for anglers,
sailing and other aquatic sports,
while a 25-mile trail offers great
excursions for walkers and
cyclists. In front of the West Wing
a nature reserve houses the first
ospreys bred in England.
Elegance and opulence in Essex
WEST WING
Mansion House, Essex
Guide price 1.8m
LIFE&STYLE
FRIDAY 21 DECEMBER 2012
31
cityam.com
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93
Top 10 new years eve hang-outs
NEW YEARS Eve in London is one of
those nights so quick-paced and
freighted with expectation that it can
quickly overwhelm. However, done
correctly it can be the best night of the
year. Booking one of the following
parties is a good place to start.
1. Home House Marylebone
The legendary members club is
throwing a Decades of Dance house
party where guests will be asked to
exhume their favourite vintage
clothing and dance moves from a
bygone era, whether its the Charleston,
the Macarena or the Gangnam style
horse dance. Its fancy dress events are a
big hit with both members and those
lucky enough to get in, and this event is
sure to be on trend.
Visit homehouse.co.uk or call 020 7670 2000
2. Searcys at The Gherkin
This year it seems the City is the place
to be, especially if youd like to treat
yourself to amazing views. Searcys will
be hosting another of its famous NYE
evenings of gastronomic delights with a
lavish four course meal, live
entertainment and champagne to toast
the end of 2012 and the start of 2013.
Visit searcys.co.uk or call 020 7071 5011
3. SushiSamba and Duck & Waffle
The top of the Heron Tower will host an
early seating at 5.30pm that is more of
a formal affair, entailing a fabulous
five-course menu. The celebrations
proper begin at 9.30pm, which will be
more laid-back, with delicious small
eats being served before the tables are
cleared away and the dancing begins.
Visit sushisamba.com or 020 3640 7330
or duckandwaffle.com or 020 3640 7310
4. The South Place Hotel
D&Ds latest venture is throwing the
ultimate house party to commemorate
its first NYE. It has put together a
comprehensive package including
baths with designer bubbles, fine
dining with wine pairings, a bespoke
holiday cocktail menu, a pop-up top-
floor terrace dance party, hangover
palliatives and a bellini brunch.
Visit southplacehotel.com or call 020 3503 0000
5. Mortons
If you prefer to do your partying in the
West End, Mayfair has plenty of options.
There arent many places that do class
better than Mortons, where members
will be able to ring in the New Year
with a five-course, fine-dining menu
before repairing downstairs to its
recently rebooted basement nightclub
2&8, where things will get loose until
the early morning with an open bar
and unlimited table service.
Visit mortonsclub.com or call 020 7499 0363
6. The Playboy Club
Head to Old Park Lane and dust down
your finest Don Draper duds for a New
Years Eve of retro elegance at The
Playboy Club, where there is a Mad Men
themed evening hosted by Hugh
Hefners son Cooper.
Visit playboyclublondon.com or call 020 7491 8586
7. Sanderson
Join indie chanteuse Marina and the
Diamonds at Fitzrovias Sanderson,
where shell be singing in the hotels
stunning Courtyard Garden area. The
evening will mark the culmination of
the Sanderson Sessions, which have
played host to an array of rising
musicians, including AlunaGeorge,
Citizens! and Karin Park.
Visit sandersonlondon.com or call 020 7300 1400
8. Buddha-Bar
The newly relaunched Buddha-Bar in
Knightsbridge will be serving its classic
Asian-influence cocktails, rivers of
Veuve, and a five-course menu. Ben
Hadwen and DJ Omar will be providing
the soundtrack to the evening on the
saxophone and decks, respectively.
Visit buddhabarlondon.com or call 020 3667 5222
9. Belle poque Circus Party
Looking for something different this
year? Belle poque Circus new years eve
party is the perfect place to go. Already
being tipped as one of the best parties on
the calendar this year, there, its all
about performance. Get ready to see
Village Underground completely
transformed and filled with spectacular
acrobats, special music acts and eye
popping costumes: all of the ingredients
to make sure you have a night to
remember.
Visit belleepoqueparty.comor call 020 7724 1617
10. Prohibition Party New Years Eve Special
Dust off your flapper dress or tuxedo and
see in the New Year in full on 1920s style.
The renowned Prohibition night at
Londons Bloomsbury Ballroom promises
to deliver an assortment of entertainment
and retro fun to take you on a journey
back in time. Expect live bands, DJs using
gramophones, a live piano room and
gambling tables too. Just make sure you
look the part.
Visit prohibitions1920s.comor call 020 7724 1617
Additional reporting Naomi Mdudu
The best places to see in the bells and beyond on 31 December
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32
TV & GAMES
cityam.com
T
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S
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BBC1
SKY SPORTS 1
7pmLive Darts 11pmPremier
League Preview11.30pmGreat
Matches of European Football
12amFootball League 1.30am
Fantasy Football Club 2.30am
Premier League Preview3am
Football League 4.30amFantasy
Football Club 5.30am-6am
Premier League Preview
SKY SPORTS 2
3.55pmLive International
Twenty20 Cricket 7.30pmLive
Football League 10pmFantasy
Football Club 11pmT20 Cricket
The Big Bash 11.30pmGolf
1.30amT20 Cricket The Big
Bash 2amTrans World Sport
3amGolf 5am-6amTight Lines
SKY SPORTS 3
7pmGolf 8.55pmLive Spanish
Football: Atletico Madrid v Celta
Vigo (Kick-off 9.00pm). 11pm
Tight Lines 12amElite League
Ice Hockey 1amDarts 5am
Thrillseekers 5.30am-6am
Aerobics Oz Style
BRITISH EUROSPORT
6.45pmTimbersports Series
7.45pmWATTS 8pmEquestrian
9pmLive Equestrian 10.20pm
Dancing 12.10am-12.30am
Horse Racing Time
ESPN
7pmPremier League Preview
7.30pmLive Serie A 9.45pm
French Football 11.30pmESPN
FC Press Pass 12amPremier
League Preview12.30amESPN
Kicks: Scottish Football 12.45am
ESPN Kicks: Extra 1amLive NBA
Basketball 3.30am30 for 30
4.30amGoal! Special 5amESPN
FC Press Pass 5.30am-6am
Premier League Review
SKY LIVING
7pmThe Love Machine 8pm
The Love Machine: Love Bites
9pmCriminal Minds 11pmThe
Love Machine 12amThe Love
Machine: Love Bites 1amBones
1.50amCriminal Minds 2.40am
Supernatural 3.30amBones
4.20am-6amMedium
BBC THREE
7pmGreat Movie Mistakes 2012
9pmGavin & Stacey Christmas
Special 10pmRussell Howards
Good News 10.30pmEastEnders
11pmFILMKill Bill: Vol 1 2003.
12.45amImpractical Jokers
1.15amPramface 2.15amRussell
Howards Good News
2.45am-3.40amDont Tell the
Bride: Christmas Revenge
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmFILM
Just My Luck 2006. 10.05pm
FILMFinal Destination 3 2006.
11.50pm The Big Bang Theory
12.50am Misfits 1.55amTool
Academy: Boyfriends Behaving
Badly 2.50am Baggage
3.50am-6amUgly Betty
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmStorage Wars: Texas
8.30pmCajun Pawn Stars 9pm
Storage Wars: Texas 10.30pm
Cajun Pawn Stars 11pmSwamp
People 1amStorage Wars: Texas
1.30amCajun Pawn Stars 2am
Storage Wars: Texas 3.30am
Cajun Pawn Stars 4amSwamp
People 5amPawn Stars
5.30am-6amStorage Wars:
Texas
DISCOVERY
7pmYou Have Been Warned
8pmThe Worlds Most Expensive
Car 9pmAuction Hunters 10pm
Wheeler Dealers 11pmFirst
Week In 12amBear Grylls: Born
Survivor 1amWheeler Dealers
2amBear Grylls: Born Survivor
3amAuction Hunters 3.50am
Wheeler Dealers 4.40am
Discovery Atlas: Egypt Revealed
5.30am-6amMeerkat Manor
DISCOVERY HOME &
HEALTH
7pmDr Oz 8pmKate Plus 8 9pm
I Didnt Know I Was Pregnant
10pmMy Teens Pregnant and So
Am I 11pmReal ER: The Bronx
12amI Didnt Know I Was
Pregnant 1amMy Teens
Pregnant and So Am I 2amReal
ER: The Bronx 3amSupernanny
US 4amA Baby Story 5am-6am
Portland Babies
SKY1
8pmDarren Boyds Little Cracker
8.30pmSpy 9pmAn Idiot
Abroad 3: A Commentary 10pm
A League of Their Own: Best Bits
11pmRoad Wars 12amBrit
Cops: Zero Tolerance 1.55am
Road Wars 3.45amCrash Test
Dummies 4.10am-6amStargate
SG-1
BBC2 ITV1 CHANNEL4 CHANNEL5
S
A
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E
&
C
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6pmBBC News 6.30pmBBC
London News 7pmThe One Show
7.30pmNigel Slaters 12 Tastes of
Christmas: BBC News 8pm
EastEnders 8.30pmOutnumbered
9pmHave I Got News for You
Christmas Special 9.30pmCHOICE
Live at the Apollo 10pmBBC News
10.25pmRegional News 10.35pm
The Graham Norton Show11.20pm
The National Lottery Friday Night
Draws 11.30pmJohn Bishops
Britain Christmas Special
12.15amEastEnders 2.10am
Weatherview2.15amSign Zone: A
Wolf Called Storm: Natural World
Special 3.15amSign Zone:
MasterChef: The Professionals
4.15am-6amBBC News
6pmCelebrity Eggheads
6.30pmStrictly Come Dancing
It Takes Two
7.30pmChristmas University
Challenge
8pmMastermind
8.30pmAn Island Parish
9pmWestminster Abbey
10pmCHOICE QI
10.30pmNewsnight
11pmWeather
11.05pmGrumpy Guide to
Christmas
12.05amFILMHoliday in
Handcuffs. 2007.
1.30amBBC News 4.15am-6am
Close
6pmLondon Tonight
6.30pmITV News
6.55pmText Santa
Starts Here
7pmEmmerdale
7.30pmCoronation Street
8pmText Santa
11pmITV News
11.10pmLondon News
11.15pmCelebrity Juice: Text
Santa Christmas Special
12amText Santa:
One More Time
1.15am Jackpot247 3amFILM
Quadrophenia: Mods and rockers
drama, starring Phil Daniels. 1979.
5am-5.30amITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.30pmUnreported World
7.55pm4thought.tv
8pmKing of Christmas Lights
9pmThe Hoarder Next Door
Christmas Special
10pmAlan Carr: Chatty Man
11.05pmFather Ted Christmas
Special 12.15amFather Ted 1.15am
The Ricky Gervais Show2.10am
My Name Is Earl 2.35amGlory
Daze 3.20amA Ninja Is for Life,
Not Just for Christmas 3.25am
90210 4.05amDeal or No Deal
5amCountdown 5.45am-6.10am
Baking Mad with Eric Lanlard
5.30pmEmergency Bikers
6.30pm5 News at 6.30
7pmCowboy Builders:
5 News Update
8pmNorth Pole Ice Airport:
5 News at 9
9pmCHOICE The Mentalist
10pmCastle
11pmLaw & Order:
Criminal Intent
11.55pmInside Hollywood
12amSuperCasino
3.50amMotorsport Mundial
4.20amHouseBusters 4.45am
Great Artists 5.10amMichaelas
Wild Challenge 5.35am-6am
Michaelas Wild Challenge
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6 7 8
9
10 11 12 13
14
15 16 17
18 19
20 21
11 23 16
4 22
22 15
21
38 13
18 10
9 39
34
35 10
31 10
3 7 17
8
6
15
40
19
29
18
14
36
34
16
41
12
9
11
11
29
15
21
24
ACROSS
1 Of large size
compared to
weight (5)
3 Latin for about (5)
6 Kitchen appliance (4)
8 Dog-like (6)
10 Finnish steam bath (5)
12 River which ows
through Kelso (5)
14 Transporter (7)
15 Glisten (5)
16 Play for time (5)
18 Astonished (6)
19 Despatch (4)
20 Moves in large
numbers, swarms (5)
21 Line on which music
is written (5)
DOWN
1 Footwear items (5)
2 Family (3)
3 Censure
severely (8)
4 Say again (9)
5 Set straight
or right (5)
7 Make clear
and (more)
comprehensible (9)
9 Slipshod (8)
11 Grandmother (3)
13 Drenched with
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15 Astute (5)
17 Deep serving
spoon (5)
19 Relax in a chair (3)
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
FRIDAY 21 DECEMBER 2012
LIVE AT THE APOLLO
BBC1, 9.30PM
Omid Djalili plays host for another
half-hour of stand-up at Hammersmith
Apollo, with fellow funnymen Julian
Clary and Reginald D Hunter.
QI
BBC2, 10PM
Stephen Fry hosts a Christmas edition
of the quiz, asking Sarah Millican, Phill
Jupitus, Danny Baker and Alan Davies
questions on the theme of jingle bells.
THE MENTALIST
CHANNEL5, 9PM
Cult leader Bret Stiles (Malcolm
McDowell) helps Jane orchestrate a
plan to break Lorelei Martins out of
prison. Simon Baker stars.
TVPICK
TOMORROWS highlight at Ascot is
the Ladbroke Hurdle at 3.10pm,
one of the richest handicaps in
Europe. Alan King trains the likely
favourite, Balder Success, who Im
sure is going to prove much better
than his current mark of 147.
However, this is going to be a
brutal contest in the ground and
11st 4lb is plenty of weight for a
four-year-old to be carrying in such
a competitive race.
Nicky Henderson has landed this
prize in two of the past three years
and he fires four bullets at
tomorrows contest. The pick of
those for me is easily CASH AND
GO who ran a fine race to be
second to Olofi in the Racing Post
Hurdle at Cheltenham last month.
Barry Geraghtys mount perhaps
just needed that run on soft
ground and although hes gone up
in the handicap, I can see this
course playing to his strengths.
Take the 7/1 available with Coral.
A saver is advised on bottom
weight INTO WAIN at 14/1 with
Coral on the back of his unlucky
second to Petit Robin at Sandown
last time. He clearly relishes soft
ground and it often pays to have
lowly weighted, progressive
runners on your side when the
ground is riding this soft.
Alan King cant explain the poor
performance of SMAD PLACE at
Wetherby last month, but Im
willing to give him another chance
in tomorrows Long Walk Hurdle
(2.00pm).
Its very sad that Big Bucks isnt
going to be on show, although it
definitely makes it more
competitive and Smad Place has
shown a liking for the course and
conditions in the past. I fancy him
to have too much for the likes of
Trustan Times and Prospect Wells,
so snap up the 5/2 with Coral.
This afternoons racing isnt
great, but I will be eagerly
watching SIMONSIG in the
novices chase at 2.30pm. He will
be far too short to back in this race,
yet the 3/1 for the Arkle should be
taken.
He has reportedly been schooling
unbelievably well and there is a
feeling in the yard that he could be
just as good as his outstanding
stablemate Sprinter Sacre.
There was some good news for
racing this week with Racing UK
being announced as Ascots new
broadcast partner from June 2014.
Not only is their coverage always
excellent, but their profits are
reinvested into racing as they are
wholly owned by the racecourses,
which can only be a good thing.
You can follow me on Twitter
@BillEsdaile for all my views over
the Christmas period.
NICKY Henderson has an enviable
recent record at Kemptons
William Hill Winter Festival,
despite only winning the
highlight, the William Hill King
George VI Chase, once two years
ago with Long Run.
Robert Waley-Cohens seven-year-
old is the favourite for this years
renewal, but to me he seems a
horse that is regressing and I dont
think he jumps well enough. At 5/2
with Coral Im happy to look
elsewhere and am far more
interested in the 6/1 the sponsors
offer about his stablemate
RIVERSIDE THEATRE.
My selection finished second to
Long Run in this very race two
years ago, and he seems to be an
improved horse since then. He
always goes well fresh and
Kempton clearly suits him. The
prospect of soft ground also holds
no fears for Barry Geraghtys likely
mount and I cannot see him out of
the first three.
Henderson could also be
celebrating after the William Hill
Christmas Hurdle as I strongly
fancy DARLAN to beat the likes of
Cinders And Ashes and Raya Star.
The master of Seven Barrows has
won this race for the past two years
with Binocular and I expect AP
McCoy, in the JP McManus silks
again, to be smiling after this race.
Teaforthree is going to be very
difficult to beat in the Coral Welsh
National, although he is short
enough now at 9/2 with the
sponsors. Instead Im going to
plump for David Pipes SONA
SASTA who won well at the course
earlier this month.
The weights are likely to go up if
Tidal Bay defects as expected and
that will leave my fellow with a
lovely racing weight. Take the 12/1
with Coral each-way.
Riverside is the better option in the long run
FRIDAY 21 DECEMBER 2012
33
THEPUNTER
RACING TRADER
BILL ESDAILE PREVIEWS THE BEST OF THE FESTIVE RACING ACTION
n Pointers
SMAD PLACE 2.00pm Ascot (tomorrow)
CASH AND GO e/w 3.10pm Ascot (tomorrow)
INTO WAIN e/w 3.10pm Ascot (tomorrow)
SIMONSIG 3/1 Arkle Chase (Cheltenham Festival)
Looking at the William Hill King
George V Chase, its not a
surprise to see Long Run heading
the market. If the ground stays
testing then he is the one
guaranteed to really stay. There
are plenty of horses that have
won over the three-mile trip, but
for some like Finians Rainbow
and Cue Card its a bit of an
unknown, especially on the
ground.
Riverside Theatre has won a
Ryanair and was second to Long
Run in this before. Hed have a
chance in an open race. Long Run
disappointed many at Haydock
but he showed when he won the
King George and the Gold Cup
that he has plenty of stamina
and is probably the most reliable.
I ride Darlan in the Christmas
Hurdle and hes done well since
he was last seen. He had plenty of
entries earlier in the season but
the ground has been heavy so
weve waited. The better the
ground, the better the horse
youll see but its Christmas and
he needs a run. The Champion
Hurdle looks open, at the
moment thats the plan.
I have won this with Binocular
over the last two years, and with
Straw Bear previously, so Im
hoping this fellow can give me
another win.
Book premier or paddock tickets
before midday on 24 December for the
William Hill Winter Festival and
receive a fantastic package including;
a racecard, a drink, 10 William Hill
online bet and discount return visit
voucher. Book at
www.boxingdayraces.co.uk.
n Pointers
DARLAN 2.35pm Kempton (Boxing Day)
RIVERSIDE THEATRE e/w 3.10pm Kempton
(Boxing Day)
SONA SASTA e/w 2.10pm Chepstow (Thursday 27th)
Cash And Go winning in Ireland last season
Cash And Go
can pay for the
Christmas turkey
The Champ AP McCoy
50 FREE BET
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Place a bet in any of todays
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win part of your stake with
a free bet up to /25 for
this evenings meetings at
Wolverhampton and Dundalk.
Todays Qualifying Races
Lingfield: 11.25, 1.35, 2.45
ONE of the experts behind Uefas
financial fair play (FFP) rules has
warned that the credibility of
European footballs governing body
rests on its response to Paris Saint-
Germains new 700m (570m) four-
year deal with the Qatar Tourism
Authority QTA.
PSG will receive 150m (122m)
this season rising to 200m (163m)
in 2015-16 from QTA, which, like the
clubs owners the Qatar Investment
Authority (QIA), is an arm of the Gulf
state. The deal does not include shirt
sponsorship or stadium naming
rights, but will help promote Qatar,
according to newspaper Le Parisien.
The deal promises to prevent big-
spending PSG from breaking
European rules outlawing losses of
more than 45m (37m) for 2011-13.
But David Lampitt, who was part of
an expert group that helped develop
Uefas FFP framework, believes it will
pose a stern challenge to the bodys
determination to take a hard line.
It looks like a pretty astounding
deal that certainly stretches credibil-
ity. Whether it undermines FFP or
not rests with Uefa and how they
deal with it, Lampitt, now chief
executive of Supporters Direct, told
City A.M. From the point of view of
other clubs, in France or England, its
important that Uefa is seen to be act-
ing with credibility in these issues.
PSG new 570m
deal stretches
credibility, says
Uefa FFP expert
I dont think its unexpected but
when you look at the historic value of
sponsorship deals for Paris Saint-
Germain and the French league
youll find this is hugely out of kilter.
FFP rules are aimed at ensuring
clubs spend only what they generate
and Uefa insists it will not let clubs
artificially boost income through
deals with related companies.
PSGs contract with QTA dwarfs
even Abu Dhabi-backed Manchester
Citys 400m, 10-year sponsorship
agreement with state airline Etihad,
which also prompted questions.
Lampitt, whose role at Supporters
Direct involves advocating a more
sustainable approach to football
finance, and helped draw up the
Championships own version of FFP,
says Uefa has the framework to assess
such unprecedented deals.
Theyve anticipated this in the
way theyve put FFP rules together,
he added. It can be done but its a
significant area for testing the credi-
bility of FFP and ensuring its applied
resoundingly and consistently.
FRIDAY 21 DECEMBER 2012
34
SPORT
cityam.com/sport
BY FRANK DALLERES
@cityam_sport
THEPUNTER FOOTBALL TRADER
BEN CLEMINSON PREVIEWS THE WEEKENDS PREMIER LEAGUE ACTION

Canaries are a big price to continue recent hot streak
n Pointers
Norwich at 3/1 on Betfair
Sell total goals at 2.8 with Sporting Index
(West Brom v Norwich)
QPR at 12/5 with Coral
ONLY Premier League leaders
Manchester United have taken
more points in their last 10
games than Norwich, and the
Canaries look over-priced for
their trip to West Brom
tomorrow.
The Baggies early form has
fizzled out recently and their
dull 0-0 draw with an under-
strength West Ham on
Sunday means they are
without a win in four.
Having surprised Chelsea
and beaten Sunderland, Steve
Clarkes men lost three on the
bounce before that weekend
stalemate. Furthermore, they
have failed to score in over
five hours and look
vulnerable at evens with
Coral.
Norwich are hardly an
attacking unit to fear
themselves only Grant Holt
has scored more than three
league goals this term but
their organised approach has
paid dividends.
The 1-0 defeat of Arsenal in
October was followed by
victory over Manchester
United a few weeks later.
Since then they have
triumphed over Stoke,
Sunderland, Swansea and
Wigan, as well as away draws
at Everton and Southampton.
Six of the last seven
encounters between the pair
have gone to the away side,
including the last four, and I
can see that becoming five.
The 3/1 on Betfair is too big
looking at the form of the
respective clubs and Id snap
that up. Selling total goals at
2.8 with Sporting Index is also
advised in what is likely to be
a low-scoring clash.
It was a long time coming,
but Queens Park Rangers
finally got their first win of
the season last weekend to
give Harry Redknapp a much
needed early Christmas
present in his fourth game in
charge of the club.
Ironically it was Adel
Taarabt, the midfielder
Redknapp sold at Tottenham,
who was the hero with his
brace the difference in a 2-1
win over Fulham.
That win lifted Rangers off
the bottom of the table and
they have a decent
opportunity to get another
victory at Newcastle
tomorrow.
Alan Pardew earned plenty
of plaudits for steering the
Magpies to a fifth-place finish
last season, but they have
failed to build on that.
They have won just four
league games and could find
themselves slipping into a
relegation battle.
Manchester City visited St
James Park last Saturday and
blew the hosts out of the
water in a 3-1 win. While I
hardly expect a repeat of that
performance from a rather
less explosive QPR frontline,
I'm confident the west
London club can add to that
maiden success with another
win at 12/5 with Coral.
SPOTLIGHT ON
financial fair play in
FOOTBALL
Morgan tips young Lions to give
India tougher test in Mumbai
STAND-IN skipper Eoin Morgan has
tipped Englands inexperienced
Twenty20 side to bounce back from
yesterdays defeat in tomorrows
second international against India.
The tourists, missing regular
captain Stuart Broad through
injury, plus Graeme Swann, Kevin
Pietersen and Steven Finn all
rested following their Test series
exploits were beaten by five
wickets in Pune.
But Middlesex batsman Morgan
believes his team will be stronger for
yesterdays comprehensive defeat,
which was Englands first ever T20
international loss in India.
We are a tremendously young
side and the guys showed a lot of
promise, said the 26-year-old.
We will have to pick ourselves up
from here and hopefully produce a
win on Saturday.
Alex Hales played tremendously,
along with Luke Wright. But in that
middle period we failed to kick on.
The positivity wasnt there in our
batting and we were 15 or 20 runs
short.
Morgan lost the toss and
England were asked to
bat first. They made a
storming start though,
as opening batsman
Hales smashed two
boundaries in the
first over.
By the time Hales
was dismissed for 56,
off the bowling of
Yuvraj Singh, the
tourists were
well placed
on 99-3.
Luke Wright chipped in with 34
and Jos Buttler added 33 runs, but
England finished their allotted overs
on 157-6, with Singh taking three
wickets.
India looked to be making light
work of their target, until Tim
Bresnan struck twice in the fifth
over to remove the opening pair.
But Singh, Englands tormentor
with the ball, top-scored with 38
runs to steer his side home with 13
balls to be had.
We lacked a little bit of
discipline in our bowling,
Morgan added.
But we were always up against
it with that score.
IN BRIEF
Scotland turn to Johnson
n RUGBY UNION: Former Wales coach
Scott Johnson has been appointed
Scotlands interim head coach,
succeeding Andy Robinson in the hot
seat. The Australian will take charge of
the team for their Six Nations
campaign, which begins against
England in February.
Inces Liverpool move rubbished
n FOOTBALL: Blackpool boss Michael
Appleton has rubbished suggestions
Liverpool have agreed a deal to sign
midfielder Thomas Ince in next months
transfer window. I think there's been a
conversation, Appleton said. But its
way below the money we'd expect for
someone of Tom's talent.
IN FOCUS: LONDON CLUBS
Lukas has a point to prove
Arsenals pairing with last
seasons Bundesliga and Champions
League runners-up Bayern Munich
means a reunion for Gunners forward
Lukas Podolski with the club he left
under a cloud in 2009. The 27-year-old
fell out of favour with then-boss Jurgen
Klinsmann at the Bavarian giants and
returned to first club Cologne in a 10m
deal partly funded by the clubs
supporters, who bought pixels of an
online image of their hero.
FOOTBALL
COMMENT
TREVOR STEVEN
FORMER Manchester United
favourite Cristiano Ronaldo will
return to Old Trafford in February
when Real Madrid take on Alex
Fergusons side in their
last 16 Champions League tie.
Arsenal, meanwhile, will have to
overcome Bayern Munich to keep
alive hope of a Wembley final,
with the first leg at the Emirates.
Celtic have been drawn against
Italian giants Juventus.
In the Europa League, two-time
winners Tottenham have been
paired with Lyon, while reigning
European champions Chelsea will
play Sparta Prague.
cityam.com
FRIDAY 21 DECEMBER 2012
BY JOSH RICHARDS
Alex Hales top scored for
England with 56
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Manchesters braced for return of Ronaldo
Bales my man of the year in review of 2012
Blues target rare double
Chelsea begin their quest to
follow up last seasons Champions
League triumph with the Europa
League title with a last 32 tie against
Sparta Prague. Goalkeeper Petr Cech,
capped 98 times by the Czech Republic,
will play against one of his former
clubs. Meanwhile Jiri Jarosik, who won
the Premier League title at Stamford
Bridge in 2005, is likely to feature for
Sparta. Ajax or Steaua Bucharest lie in
wait in the next round.
Hugo is heading home
France captain Hugo Lloris has
recently made the No1 spot at Spurs his
own and will hope to keep his place
between the sticks for the last 32 tie
against former club Lyon. Should the
Lilywhites progress a potential meeting
with Inter Milan awaits, which will no
doubt have Gareth Bale licking his lips
after the winger hit a hat-trick in Spurs
4-3 defeat at the San Siro in the
Champions League two seasons ago.
Inter play FC Cluj in the round of 32.
I
TS BEEN a hugely eventful year,
from the extraordinary climax to
the Premier League title race, to a
new England manager and some
dazzling individual performances.
Here are my picks of 2012s highlights.
BEST PLAYER
Robin van Persies goals kept Arsenal
alive and hes made a good start to
life at Manchester United, but Ive
gone for someone else. Gareth Bale
was instrumental in everything good
Tottenham have done and played a
big part in getting them back into
the top four. If he is not playing
Spurs suffer badly. Pound for pound,
I think hes the most talented player
in English football. He has abilities
nobody else has: he has great pace, is
very skilled and possesses a goal
threat, with head or feet.
BEST MOMENT
It has to be Sergio Agueros title-
winning, stoppage-time goal for
Manchester City against Queens Park
Rangers. He didnt panic, hit the
target and created a phenomenal
moment. Justice was done City
played the best football of last
season while Aguero is the type pf
player I like: works hard, never
blames anybody else and a nice chap.
BIGGEST SHOCK
Roy Hodgson getting the England job
ahead of Harry Redknapp. At the
time I think a lot of people were
disappointed, but hes an
international-style manager with a
good pedigree, who says and does
the right things, and I think it has
turned out to be the right decision.
BIGGEST DISAPPOINTMENT
Mario Balotelli put in some decent
performances last term, had a good
European Championships and I
thought hed destroy defences this
season. Instead he looks like a
troubled soul, perennially unhappy
and seems to be affected by what
happens to him on the pitch. Hes
been a great disappointment to me
and, Im sure, Roberto Mancini.
BEST TRANSFER
Michu was virtually unknown by the
vast majority of fans in this country
until Michael Laudrup used his
knowledge of Spain to pull off an
incredible bargain at 2.2m. His
game suits the Premier League, hes
hungry to score, is a cool finisher,
has a good work ethic and suits how
Swansea play down to the ground.
BEST MANAGER
For having an impact at two teams
with very little money, its Paul
Lambert. He worked miracles with
Norwich before leaving for Aston
Villa and, after a very difficult start
has generated a feel-good factor. He
took stick for dropping Darren Bent
but maintained his stance and
results have picked up. I think theyll
finish in the top 10.
Trevor Steven is a former England
international who played in two European
Championships and two World Cups. He
now works as a media commentator. Bale helped Spurs finish in the top four
BY JOSH RICHARDS
Man Utd boss Ferguson relishes crossing swords again with Mourinho
Paris Saint-
Germain have
agreed a 570m
deal with Qatar
Tourism Authority
35
Its a great opportunity to meet up with Jose
again Ill order some good wine