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Competition
body slams
audit firms
THE COMPETITION Commission
will this morning find that the
Big Four accountancy firms have
too much control over the
industry, and call for measures to
encourage Britains largest
companies to change auditor
regularly to boost competition.
In its long-awaited provisional
report, the commission is
expected to find no evidence of
collusion, but will raise concerns
that PwC, KPMG, Deloitte and
Ernst & Young have an unfair grip
on the books of big UK
companies.
Many blue-chip firms have Big
Four-only rules in place, and the
commission is set to propose a
ban on such measures, according
to Sky News.
But it is expected to be less
forthright about imposing
mandatory rotation, in a move
likely to upset mid-sized
accountancy firms attempting to
crack the FTSE audit market.
The Competition Commission
will also urge investors to become
more vocal about a firms choice
of auditor.
All but a handful of the FTSE
100 use one of the Big Four to
audit their accounts, and a firm
will keep their auditor for an
average of 48 years, according to a
House of Lords report in 2011.
At least four blue-chip
companies are believed to have
put their audit contract out to
tender in 2012, but only two
asset manager Schroders and oil
explorer BG Group decided to
switch. Both continue to use the
Big Four.
The Competition Commission
declined to comment last night.
Financier Nat Rothschild arrived at the Honourable Artillery Company for the Bumi extraordinary meeting with his mother Lady Rothschild
BUMI co-founder Nat Rothschild yes-
terday suffered an embarrassing
defeat at the coal miners EGM, with
19 out of 22 proposals for a board
overhaul flattened by shareholders in
a public City showdown after months
of increasingly bitter exchanges.
Rothschild, who arrived at the
extraordinary meeting with his
mother Lady Serena Rothschild, pro-
posed last month ousting 12 out of
the 14 current Bumi directors and
bringing in a team of his own.
Investors yesterday chose to back
the current Bumi board, with more
than 61 per cent of stakeholders sup-
porting incumbent chief executive
Nick von Schirnding and the deputy
chairman director Sir Julian Horn-
Smith.
Rothschilds proposed appointment
as an executive director was rejected
by 63 per cent of investors, which
marked the weightiest defeat of all
the resolutions.
The outcome of the EGM, held at
the Honourable Artillery Company
on City Road yesterday morning, will
see two current Bumi board members
former chief executive Nalin Rathod
and independent non-executive direc-
tor Jean-Marc Mirzhai step down.
In a narrow victory, one of
Rothschilds proposed new team, for-
mer British ambassador to Indonesia
Sir Richard Gozney, has been voted
onto the Bumi board.
In a statement following the results
of the meeting, the FTSE 250 coal
www.cityam.com FREE
miner welcomed Sir Richards
appointment and the decision of
shareholders to support the board on
substantially all resolutions.
The board will now speed up the
divorce of Bumi Resources from the
London-listed Bumi PLC, as well as a
restructuring of the board, which will
be pursued with a sense of urgency.
The board will be re-structured and
will be significantly smaller while
retaining a majority of independent
directors, the firm said last night.
Speaking at the EGM, von
Schirnding said that the agreement
signed last week with the Bakries,
which saw them put $50m (33m) in
a ringfenced account for the buyback
of Bumi Resources, was a tangible
step forward for shareholders.
The powerful Indonesian investors
last night welcomed the outcome of
the meeting.
Hedge fund veteran Rothschild, also
speaking last night, labelled the
result a pyrrhic victory for the
Bumi board, adding that a substan-
tial majority of non-aligned share-
holders voted for his proposals.
Calling again for the full release of
the probe by law firm Macfarlanes,
the financier added that he will con-
tinue to remain a shareholder of
Bumi, and he will continue to fight
for the rights of the minority inde-
pendent shareholders.
BY MARION DAKERS
FTSE 100 6,291.54 -103.83 DOW13,880.62 -46.92 NASDAQ3,131.49 -32.92 /$ 1.52 -0.01 / 1.16 +0.01 /$1.32 -0.01
BY CATHY ADAMS
LEONARD
ON RUGBY
See Page 13
Certified Distribution
from 31/12/12 to 27/01/13 is 127,008
ISSUE 1,825 FRIDAY 22 FEBRUARY 2013
ROTHSCHILD HIT
BY EPIC DEFEAT
Our new columnist on Page 43
81 YEAR-OLD TOY FIRM GRABS MARKET SHARE
LEGO BUILDS PROFIT
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Osborne faces 10bn hole
in the UK public finances
CHANCELLOR George Osborne is
set to run a budget deficit 10bn
or more larger than the 119.9bn
predicted by the budget watchdog
during the 2012-13 fiscal year,
economists said yesterday.
Januarys public borrowing fig-
ures, released yesterday by the
Office for National Statistics
(ONS), looked positive on the sur-
face, analysts said, with a larger-
than-expected surplus of 11.4bn,
5bn better than last year.
But analysts said this figure was
flattered by seasonal strength in
tax revenues and one-off transfers
from the bank fund, known as the
Asset Purchase Facility (APF), that
carries out quantitative easing
(QE) by buying gilts.
Excluding all the one-off trans-
fers that muddy the waters, bor-
rowing was 7.5bn higher in the
first 10 months of the current fis-
cal year than in the previous fiscal
year, said chief Berenberg Bank
economist Robert Wood.
Since the 4G auction brought in
1.2bn less than built into the
budget numbers, the budget
could be 10bn worse than pre-
dicted by the OBR in the Autumn
Statement, Wood forecast, echo-
ing other economists numbers.
Osborne is very unlikely to be
Brussels turns up pressure on Libor
Banks and broker-dealers ensnared in the
Libor-rigging scandal are facing fresh
pressure to settle with Europes top
competition authority as it expands the
scope of its probes. In a speech on Friday
in Paris, the EUs competition
commissioner will stress his
determination to pursue the cases and
ensure competition enforcement
complements actions of global authorities
against misconduct and corruption.
Joaqun Almunias speech is intended as a
warning to financial institutions.
Former Virgin exec to head centre
Will Whitehorn, a former senior Virgin
Group executive, is to chair a government
innovation centre being created to devise
integrated transport systems for export in
a global market predicted to be worth
900bn by 2025.
Reyl & Co opens London office
Reyl & Co, the Swiss private bank, has
opened an office in London with a view to
setting up a corporate advisory business,
highlighting how a clutch of smaller banks
are pushing into traditional investment
banking activities.
Mercedes and dealers fined
Mercedes-Benz and three commercial
vehicle dealers have been fined 2.6m by
a competition watchdog for rigging the
sale of vans and trucks around Britain.The
Office of Fair Trading imposed the fines.
Dyson puts its faith in 50m plant
Dyson is expanding its manufacturing in
the Far East by taking production of its
ground-breaking electrical motors in-
house. The private company is to open its
own production lines in Singapore.
Bankia to reveal largest loss
Nationalised Spanish lender Bankia is
expected to reveal a 19bn loss next week,
the largest in the countrys corporate
history. The bank has been struggling to
sell assets since its bailout in 2012.
Merkel accused of unholy alliance
Angela Merkel has been accused of
engaging in an unholy alliance with
Britain after backing David Camerons
demands for a cut to the European Union
budget.
Heinz profit slips
H.J. Heinzs earnings slipped 5.3 per cent
as the ketchup maker recorded a larger
loss from discontinued operations,
though organic sales continued to
improve in emerging markets.
Nielsen aims to gauge online TV
Nielsen Holdings is taking a step towards
extending its TV-ratings business to
measure online viewing, aiming to gauge
how much viewership has drifted away
from traditional TV to online outlets.
THE EUROPEAN Central Bank (ECB)
made 555m (480m) in interest
income from its Greek bonds,
accounts showed yesterday,
indicating the whole Eurosystem
may have made several billion on
the emergency purchases.
That is expected to be divided up
among the Eurozones national
central banks, added to their own
earnings and given to Athens.
The ECB made another 553m in
interest on other securities bought
under the emergency programme,
including those of Spain and Italy.
ECB profits on
its Greek bonds
2
NEWS
BY TIM WALLACE
BY BEN SOUTHWOOD
To contact the newsdesk email news@cityam.com
B
RITAIN is stuck in a rut. No
wonder that investors and
credit rating agencies are losing
patience: the coalition doesnt
have the guts or decisiveness needed
to jolt the UK out of its present
mediocrity, while the opposition is
busy dreaming up new taxes, thinks
that a slightly looser fiscal policy
would transform our prospects and
has no real understanding of the
extent of our fiscal crisis.
Britains tax receipts confirm that
the economy continues to do poorly,
albeit not disastrously. So far this fis-
cal year, receipts from Vat are up 2.2
per cent, less than the rate of infla-
tion. Income and capital gains tax
receipts are down 0.2 per cent and cor-
poration taxes are down 8.4 per cent:
while in both cases there have been
tax cuts (a higher personal allowance
and lower corporation tax rates) these
EDITORS
LETTER
ALLISTER HEATH
Britain: a case study in low-growth economic mediocrity
FRIDAY 22 FEBRUARY 2013
dont explain such shockingly bad
numbers. Very limited pay rises, a
drop in reported income from the
highest earners and weak profits are
among the answers. National insur-
ance contributions are up a healthier
3.4 per cent, though this not anything
worth shouting about.
What all of this suggests is an econo-
my that is either stagnating or grow-
ing a little, but by no more than a few
tenths of a per cent. At best, the situa-
tion looks only marginally rosier than
the official GDP figures; at worst,
there is no difference. Mediocrity
undoubtedly rules OK.
While revenues are poor, any
progress the government is making
in trimming overall expenditure on
wages, benefits and other current
spending is being more than can-
celled out by increased interest on the
growing national debt. During April
2012-January 2013, central govern-
ment current expenditure hit
525.7bn, 2.7 per cent higher than in
the same period of 2011-12.
Depending on which measure of
inflation one uses, real current spend-
ing was therefore either up or down
slightly. The real cuts are happening
in capex, the one area where state
spending can be useful for long-term
growth (though the private sector, if
it were allowed to, could take over
many projects). So far this year, cen-
the next five years, Barclays expects
cash to provide negative inflation-
adjusted returns of about -1.5 per cent
per year (with compounding effects,
that means a very sharp drop in
value), safe haven government
bonds -2 per cent in other words,
even worse than cash and equities
annual growth of 3-4 per cent. The
authors believe that the bull market
in government bonds which peaked
last year will end in a whimper,
rather than in a 1994-style crash. I sus-
pect the authors may be too opti-
mistic, but their case is that a
shortage of safe assets, combined
with a decision by the authorities to
keep the monetary floodgates open,
will do the trick. One thing is clear:
savers are going to suffer.
tral government net investment was
minus 6.4bn with depreciation
overwhelming gross investment a
massive 27.7bn lower than in the
same period of the previous year. So
we are still seeing the wrong kinds of
cuts, stagnant growth and weak tax
receipts. Unless something drastic
changes soon, it is not just credit rat-
ing agencies that will be running out
of patience with the government.
LOW RETURNS
One of this columns themes is that
we are now facing a world of low real
returns across financial assets, with
high inflation gobbling up nominal
gains, and that the bond markets,
after years of astonishing returns, are
set for a crash. There is lots of evi-
dence to back up this thesis in
Barclays latest annual equity-gilt
study. The conclusions are stark. Over
able to say the deficit is falling in
his 20 March budget unless he can
find some other ways of massaging
the figures, Wood warned.
But the Treasury tried to shift
focus onto spending, which was
down 2bn compared to the same
month a year earlier, and receipts,
which were up, even excluding one-
off moves, it said.
Economists also criticised the
Treasury for the level of unneces-
sary complexity in the finances.
All of the messing around with
numbers makes it very difficult to
see the direction were going in,
Items Andrew Goodwin said.
Goodwin said all the different
ways official bodies state the deficit
and borrowing numbers can con-
fuse even economic experts.
And the ONS decision yesterday
morning to allow only 9.1bn of
intra-government transfers into the
official borrowing numbers over
the tax year confused matters fur-
ther. Since 2.7bn of this was
already taken up by previous trans-
fers, even on the governments fig-
ures, which include one-off QE
transfers, it will only be able to
include 6.4bn out of an expected
11.5bn in its borrowing numbers.
APR-JAN
2011-12
92.3bn 99.9bn
- 28bn
- 3.8bn
- 2.3bn
65.8bn
APR-JAN
2012-13
Underlying borrowing
Royal Mail pension plan
Asset Purchase Facility
Special Liquidity Scheme
Official borrowing
DEBATE: The Forum, Page 23

WHAT THE OTHER PAPERS SAY THIS MORNING
Find your next step at
CITYAMCAREERS.com
Q
Is borrowing going
down as George
Osborne said he
thought it would in the
Autumn Statement or is
it rising?
A
So far, 10 months into the 2012-
13 fiscal year, borrowing was
65.8bn 26.5bn lower than
during the same period in 2011-12.
But this includes some one-off
windfalls. Excluding the transfer of
the Royal Mail pension plan, and
the Treasurys raid on quantitative
easing (QE) income, borrowing was
97.6bn, and therefore 5.3bn up
on 2011-12. Further excluding the
2.3bn money gained from
winding down the Special Liquidity
Scheme, it was 7.5bn higher.
Q
So will Osborne officially miss the Office
for Budget Responsibilitys (OBR) target?
A
The OBR forecast borrowing
would be 119.9bn over the year.
Economists are now forecasting
Osborne will overshoot the target by
10bn-15bn. That is due to higher
borrowing and also because the
OBR assumed 11.5bn gained from
raiding the Bank of Englands QE
income. Actually this can only bring
in a maximum of 6.4bn, as the
target is for public sector net
borrowing, which was yesterday
defined to not include all the QE
income. The OBR also assumed a
3.5bn gain from this weeks 4G
auction (it brought in 2.3bn).
Q
A
and
BUDGET DEFICIT:
WHAT IS GOING ON?
BANK of England policymaker David
Miles yesterday called for at least an
additional 175bn of quantitative eas-
ing (QE), arguing it is the best way to
help boost the economy.
Miles believes there is a large output
gap in the UK currently which could
be reduced by printing more money,
boosting demand and encouraging
firms to invest more, increasing out-
put capacity in the longer term.
Sir Mervyn King and Paul Fisher
joined Miles in voting for another
25bn QE this month, a change from
his recent lone call for more easing.
Miles: Print
175bn more
BY TIM WALLACE
Public sector borrowing broken down
Chancellor
George
Osborne
would suffer a
political blow
if the deficit
rises during
this financial
year
THE LONDON-based construction
duo behind the iconic Shard tower
yesterday revealed their next
building project constructing
the biggest tower on earth.
Mace and EC Harris, who
helped lead the construction of
the imposing Renzo Piano-
designed Shard, have been
appointed to project manage
the construction of the
Kingdom Tower project in
Jeddah, Saudi Arabia.
The tower, set to cost $1.2bn
(780m), will stand at 3,300
feet high when built and
will be four times as high as
the Shard. It is due to start
construction later this year
and will take just over five
years to complete.
Saudi Binladin Group is
constructing the building,
with EC Harris and Mace in
charge of project
management.
Jeddah Economic
Company, the group behind
the tower, has appointed the
companies. The tower is part
of a bigger 13bn
development in Jeddah,
overlooking the Red Sea.
Shard duo set
to build tallest
tower on earth
BY MICHAEL BOW
BILLIONAIRE investor David Einhorn
yesterday pleaded with fellow Apple
shareholders to vote against the
iPhone makers proposals to change
its corporate practice.
Einhorns Greenlight Capital hedge
fund, which owns around $600m
(394m) in Apple shares, laid out pro-
posals that would see billions of dol-
lars returned to shareholders.
Einhorn said that despite the com-
panys history of product innovation
its attitude to managing its
cash has been decidedly
non-innovative.
Greenlight Capital
wants the company to
distribute a new class
of preferential Apple
shares which he
dubbed iPrefs that
would be handed out to
investors and
return a regu-
lar, fixed
dividend.
Apple has
said it is
considering
Einhorn pleads
with investors
on Apple vote
BY JAMES TITCOMB
Einhorns proposals. However, a
board proposal at its upcoming annu-
al meeting would see it prevented
from issuing the kind of preferential
stock suggested by Einhorn.
Greenlight Capital is also taking the
company to court, claiming the pro-
posals would violate US corporate
laws. On Tuesday the judge presiding
over the trial said Einhorn was likely
to win the case.
Einhorn said his suggestions would
return value to investors, while leav-
ing Apple with cash to make acquisi-
tions, and preventing it from
jeopardising its business. Apples
shares have fallen by a third since
their summer highs.
[The proposals] dont interfere
with whatever business plan Apple
has, we want them to keep innovat-
ing and designing products we cant
imagine living without, Einhorn
said, imploring shareholders to
send [Apple] a clear mes-
sage. Apple did not
comment.
GLOBAL banking giant Citigroup
yesterday introduced a new pay
policy for top executives at the
firm to more closely align salaries
and bonuses with the banks
performance.
The move, revealed in a
regulatory filing yesterday, follows
shareholder concerns over payouts
which led to the departure of
former boss Vikram Pandit after
shareholders rejected his pay deal
last year. Executive pay used to
include a controversial profit-
sharing plan, which has now been
shelved.
Citigroup reveals pay shake-up
as Corbat gets $11.5m for 2012
BY MICHAEL BOW
When our shareholders spoke
last year about Citis
compensation structure, we
listened. We have stepped up our
efforts to solicit feedback from
investors to better understand
their concerns, chairman Michael
ONeill said. Citi said the new
executive pay programme would
use a scorecard-based structure
to remove the discretionary
nature of pay awards in the past.
In light of the tougher
measures, shareholders agreed to
award chief executive Michael
Corbat $11.5m (7.5m) for 2012,
which included a $4.18m cash
bonus and $6.27m of shares.
FRIDAY 22 FEBRUARY 2013
3
NEWS
cityam.com
Citigroup boss Michael Corbat has a salary of $1m topped up with bonuses and shares
The Kingdom
Tower in
Jeddah
Einhorns Greenlight
Capital owns $600m
in Apple shares
DEFENCE and aerospace firm BAE
Systems yesterday launched an ambi-
tious 1bn share buyback pro-
gramme, as evidence of the robust
performance of the FTSE firm.
Chief executive Ian King said he
could see green shoots in the com-
pany, which gave it the confidence to
unveil the buyback, although full
implementation still hinges on dis-
cussions with Saudi Arabia over pric-
ing of a key contract.
Despite its optimism, BAE yesterday
posted a six per cent fall in profit,,
and sales over the year fell seven per
cent.
Full-year underlying earnings
before interest, tax and amortisation
fell to 1.9bn, hurt by unresolved dis-
cussions over pricing of the Saudi
Arabian contract to supply the Gulf
state with Typhoon aircraft.
BAE warned that its key UK and US
markets would be constrained this
year.
It has come under pressure from
shrinking military budgets in the US
and the UK, as governments try to
reel in large budget deficits.
BAE plans 1bn
share buyback
as profit stalls
BY CATHY ADAMS
The UK government pledged in 2010
to slash its defence spending by eight
per cent by 2014 while the US from
which BAE derives around 40 per cent
of its income already has plans in
place to cut $487bn (320bn) from its
defence budget for the next decade.
BAE whose proposed merger with
European peer EADS collapsed in
October as Germany refused to give it
the green light is absolutely not in
discussions to revive the tie-up, King
said yesterday.
Meanwhile, BAE yesterday inked a
longevity swap with L&G to safeguard
it against the risk that its 31,000 pen-
sioners live longer than current esti-
mates.
Chief exec Ian King is bullish about prospects despite governments austerity plans
Looming cuts in America cast a
shadow over defence spending
I
NVESTORS were certainly not
gunning for BAE yesterday, as its
announcement of a share
buyback and less-bad-than-
expected annual numbers saw a
bump in its share price, even as the
wider index fell.
However, the positive sentiment
might be short-lived. The elephant in
the room for BAE remains the
current uncertainty in the US over
defence spending, bearing in mind
that in 2012 the US provided 40 per
cent of BAEs income.
Americas battles over government
spending have moved on from the
fiscal cliff at the end of last year to a
new looming deadline of 1 March
this year, when something called
sequestration is set to go into effect.
This is a round of indiscriminate
cuts, including a $42.7bn (27.9bn)
reduction in military spending.
BAE chose to ignore the impact of
a possible US sequestration in its
outlook figures yesterday. That will
make it look optimistic if the cuts go
through, as seems likely. Some
market analysts are already starting
to factor the sequester into the
calculations they make about the US
economy. US Army chief of staff Ray
Odierno has warned this risks
creating a hollow army. It risks
making BAEs predictions ring
hollow as well.
BOTTOM
LINE
MARC SIDWELL
BAE Systems PLC
21 Feb 15 Feb 18Feb 19Feb 20Feb
350
330
325
335
340
345
355 p 345.90
21Feb
FRIDAY 22 FEBRUARY 2013
5
NEWS
cityam.com
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INSURER AIG yesterday revealed a
$4bn (2.6bn) fourth quarter net loss
led by costs from Superstorm Sandy,
but better than expected earnings
cheered investors.
The group, which last year repaid
bailout money given by the US
government, booked a $1.3bn after-
tax loss from the storm, the second
largest US catastrophe ever to hit
AIG.
However, operating profit came
in at 20 cents a share, better than
the minus eight cents predicted,
sending AIG shares up last night.
AIG punctured
by hurricane
BY MICHAEL BOW
US ASSET manager Carlyle Group
yesterday pinned a 28 per cent
drop in fourth quarter earnings
on exiting investments, as it relied
more on company dividends to
return cash to shareholders.
Carlyle said economic net
income, a measure of profitability
that takes into account the mark-
to-market valuation of its assets,
came in at $182m (119.2m).
But the firm raised $14bn in
2012, up from $6.6bn the previous
year and bringing its total assets
under management to $170.2bn.
Earnings drop
28pc at Carlyle
BY CITY A.M. REPORTER
MAJOR European insurers yesterday
hiked their year-end dividend, reas-
suring investors who feared the indus-
try may cut returns in the face of low
bond yields.
Axa and Swiss Re both raised their
payout as they announced bumper
full-year results for 2012, while
Germanys Allianz maintained its
healthy return to shareholders.
Insurance investors were spooked
on Wednesday when Britains RSA
said it would slash its dividend by a
third in the face of weak investment
returns, sending its share price down
14 per cent. Traders then drove down
shares in other UK insurers amid fears
they may take similar action.
However, it appears that while the
entire industry is battling low bond
yields, major insurers on the conti-
nent have not felt the same squeeze
on returns.
Swiss Re said it would pay a special
dividend of four Swiss francs a share,
costing the company about $2.8bn
BY JAMES WATERSON (1.8bn), as well as raising its annual
payout by 17 per cent to SFr3.50.
The announcement came as Swiss Re
unveiled a 60 per cent rise in full-year
net income to $4.2bn thanks to a sub-
stantial rise in premium rates and rel-
atively few natural disasters.
Meanwhile, Axa announced a small
fall in net income but still upped its
dividend by four per cent.
Allianz said profits doubled to
5.2bn but faced criticism from ana-
lysts who wanted the company to
return more of its reserves to share-
holders.
THE EUROPEAN Banking Authority (EBA), headed by Andrea Enria, yesterday launched a
consultation to define highly liquid assets. It should give banks certainty on what they must
hold in their liquidity buffers, allowing them to build the required level of protection.
BANKS TO LEARN WHICH ASSETS COUNT AS LIQUID
Swiss Re
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75.65
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FRIDAY 22 FEBRUARY 2013
8
NEWS
cityam.com
TROUBLED Franco-Belgian lender
Dexia reported losses in 2012
yesterday, and forecast more to
come through 2013.
The state-backed bank lost
2.9bn (2.5bn) in the year,
compared with 11.6bn in 2011.
It lost money on the sale of
Turkish, French and
Luxembourger units, as well as
paying 743m in government fees
for guarantees on borrowing.
Dexia hopes to reduce its losses
to 950m in 2013 as fewer units
are left to sell and as guarantee
fees fall because the bank is
shrinking its balance sheet.
Dexia reports
more losses
BY TIM WALLACE
HEWLETT-PACKARD, the largest PC
maker in the world, saw its first
quarter sales drop six per cent
after a sharp fall in consumer
notebook sales, the company said
last night.
Revenue from personal
notebooks was down 16 per cent
on the year and ten per cent on
the quarter, dragging total
revenues down to $28.4bn
(18.6bn) but beating estimates.
Profit, stripped out for costs,
also fell 11 per cent, down to 82
cents a share, underscoring the
difficulty facing traditional PC
makers in the smartphone era.
HP scuppered
by notebooks
BY MICHAEL BOW
THE YORKSHIRE Building Society
saw profits, savings deposits and
lending volumes all increase in
2012 as customers switched away
from banks, the mutual reported
yesterday.
And the building society
launched a 160m investment
programme to set up new
branchesand extend its mobile
and online offerings.
Pre-tax profits came in at
157.1m, up 21 per cent on the
year, while total membership hit
3.5m, up six per cent on the year.
It also expanded its mortgage
market share to 3.2 per cent.
Record growth
for Yorkshire
BY TIM WALLACE
LLOYDS of London insurer
Lancashire Holdings yesterday
launched a new capital
management division as it
unveiled a slight rise in year-end
income.
Net operating profit hit $220.3m
(144m), up $1.3m on last year,
despite the company booking a
$44.5m loss on claims associated
with superstorm Sandy.
Chief executive Richard Brindle
said the decision to set up
Lancashire Capital Management
would help the business grow by
partnering with third party
capital providers but he would
ensure that these projects dont
distract us from the mothership.
Lancashire
profit rises
BY JAMES WATERSON
MONEY manager Ashmore Group
yesterday said half-year profits fell
seven per cent in 2012 after a
slump in fees bit into revenues.
Performance fees fell from 23m
to 15.3m in the six months
ending December, leading to a ten
per cent fall in net revenue. But
the emerging market specialist
said Ebitda margin a key
measure of cost control
remained at 70 per cent, the best
margin in the sector.
Finance director Graeme Dell
told City A.M. it would try and
target domestic clients in
emerging market countries over
the next decade in a bid to grow
the firm.
Ashmore slides
on revenue fall
BY MICHAEL BOW
Top insurers
allay fears of
dividend cut
EASYJET clinched a narrow victory at
its AGM yesterday, with founder Sir
Stelios Haji-Iaonnou and other
investors lodging a significant protest
vote against director pay and outgo-
ing chairman Sir Mike Rake.
The budget airlines remuneration
report garnered just 55.29 per
cent support, after Sir
Stelios voted his familys 37
per cent stake against the
plans and others followed
suit.
Sir Mike was re-elected
with 55.6 per cent sup-
port, thwarting Sir
Stelioss plan to
oust him before
his planned
departure in
the summer.
But EasyJet
failed to pass
a special reso-
lution allow-
ing the board
EasyJet edges
win in face of
Stelios protest
BY MARION DAKERS
to authorise general meetings more
than once a year a measure that sev-
eral institutional investors have
opposed at other firms.
A spokesperson for Sir Stelios said he
will keep up his campaign for share-
holder value, and it will be public not
in private once Sir Mike leaves and
the firm joins the FTSE 100, which
could happen in Marchs reshuffle.
The chairman defended his record at
EasyJet, saying ahead of the meeting
that he and Sir Stelios had agreed to
temper the firms high-growth strate-
gy as far back as 2009.
This has created the basis for a spec-
tacular return for the companys
shareholders as Carolyn
[McCall, chief executive]
and her management
team have done an out-
standing job in execut-
ing the companys
strategy, he said.
FRIDAY 22 FEBRUARY 2013
10
NEWS
cityam.com
LADBROKES chief executive
Richard Glynn said yesterday he is
betting on the troublesome
revamp of its digital operation
finally paying off this year.
The bookies 50m online
facelift had been repeatedly
delayed, and saw the sacking of
digital operations head Richard
Ames in July last year.
The revamp finally started to go
live at the end of last year, and
Glynn said he expected much
higher online sales in 2013,
especially towards the second half
of the year. The company has
recently announced the 30m
(26m) purchase of Irish betting
website Betdaq in a bid to ramp up
digital revenues.
Yesterday, Ladbrokes revealed
Ladbrokes betting on digital
growth as revenues hit 1bn
BY JAMES TITCOMB
that annual profits had risen
above 1bn, up 7.4 per cent from
2011. Pre-tax profit rose by 49 per
cent to 201m.
Many sports bookies enjoyed a
bumper 2012 due to upsets such as
Chelseas Champions League
victory as well as surprising
defeats for the countrys top
football teams.
We expect... to drive growth in
digital revenues and earnings,
particularly during the second
half of the year, Glynn said.
Online bookie Sportingbets
shareholders yesterday approved
its 485m sale to Ladbrokes rival
William Hill. The takeover, which
had needed 75 per cent approval,
was waved through by
shareholders controlling 87.2 per
cent of the company. The deal will
now go through on 19 March.
Sir Stelios will
continue his public
fight for value
INSIDE
TRACK
DAVID HELLIER
N
ot so long ago I asked an
investment banker in London
how long he and his colleagues
had deliberated before
deciding to float a Salford-based
materials technology company called
Luxfer in New York.
About 30 seconds, he said, quickly
and pointedly. But then this was
October last year and the new issues
market in London was effectively
closed to all bar a few rare exceptions.
Today one hopes the decision-mak-
ing process might have taken just a
little bit longer.
The prospects for Londons new
issues market are looking healthier
by the day, thanks to the recent suc-
cesses of the insurance group Direct
Line and more recently the house-
builder Crest Nicholson.
Most importantly the shares of both
companies are trading above the
issue price, with Direct Line shares
23p above the level they listed at last
December and Crest Nicholson shares
at 39p above their 259p issue price.
Obviously no company wants to
price its shares too low when it comes
to the market simply for the sake of
helping attract buyers to future
issues.
But much of the negativity hanging
over London over the IPO market
stems from a series of issues that have
been disastrous simply in share price
performance.
Speak to jaundiced fund managers
and they will assail you with the
names of Ocado, Promethean World,
Betfair and Perform, each of them
responsible for their decision not to
go near new issues for the past few
years.
As Schroders Andy Brough told me
yesterday: Theres been some
progress but we really need three to
four successes to make us truly confi-
dent. As long as everybodys leaving
the party with a balloon, then the IPO
market will have a chance of coming
back.
Bankers say those working on IPOs
are working hard to ensure investors
find no surprises, something they
should have obviously done in the
more recent past; that they know
exactly whos selling shares, who is
being locked in and theres a certain
confidence about trading going for-
ward. The banks with wide geograph-
ical networks are also making sure
that an issue doesnt depend too
much on the London investment
pool, which is complemented by
investors globally but especially in
the US.
According to one investment
banker there is still a way to go: It
feels like were dipping our toes in
the water. But these are not unfamil-
iar names that are coming to market
and it is too early to say whether
things have fully changed.
LEAKS AND PROBES
Robert Swannell, the chairman of
retailer M&S, was sufficiently stung
by the recent leak of its Christmas
trading update that he ordered an
investigation into who was behind
the release of price-sensitive informa-
tion that was broadcast by my col-
league Mark Kleinman on Sky News.
No leaks yet, however, as to whether
the inquiry is complete and M&S is
not heeding my recent advice to be
more open. There was a strict no com-
ment from the group yesterday.
david.hellier@cityam.com
Londons new issues market is thawing, but slowly
ASDA is to expand its fast-growing
clothing brand George into Europe,
Britains second largest supermarket
revealed yesterday, as it reported a slow-
down in fourth quarter sales.
The Walmart-owned group said it will
launch the brands UK website in
24 countries by September after George
enjoyed a record year.
It also plans to open more stores
abroad after launching its first fran-
chise in Abu Dhabi last year.
The news came as Asda posted a
0.1 per cent rise in like-for-like
sales in the 14 weeks to 5 January,
down from one per cent last year.
Full year like-for-like sales
increased one per cent.
Finance chief Richard
Mayfield defended
the slowdown,
Asda to expand
George abroad
as UK sales slow
BY KASMIRA JEFFORD
saying Asda deliberately decided to keep
prices down to help squeezed shoppers
and grow volumes.
It has invested 100m in lowering
prices on basic products such as milk in
the last six months.
Commenting on the horsemeat fiasco,
chief executive Andy Clarke said he was
shocked after traces of horse DNA
were found in an Asda bolognese sauce
and vowed to leave no stone unturned
in addressing issues in its supply chain.
Clarke said the scandal had a small
impact on sales and that demand
for vegetarian ready-meals had
increased. He added that it was too
early to tell how much the tests
will cost. Tesco has said the horse
DNA tests could cost it at least 1m.
PREMIER Foods, the owner of Mr
Kipling and Hovis, swung to a full-
year profit yesterday after a
turbulent 12 months.
Pre-tax profits at the food firm,
whose new chief executive Gavin
Darby has been working to turn its
business around, jumped to 4.4m
from a 259.1m loss a year earlier.
Excluding disposals, underlying
trading profit came in towards the
top end of forecasts at 123.4m.
However, sales from its
continuing operations were down
12.2 per cent to 1.75bn.
Shares in the firm closed up 5.6
per cent at 94.75p.
Premier Foods
posts a profit
BY AMY-JO CROWLEY
FRIDAY 22 FEBRUARY 2013
12
NEWS
cityam.com
Kingfisher hopes efficiency
savings will recover ground
KINGFISHER is looking to further
efficiency savings to offset a
worse than expected sales fall and
allow it to meet full-year profit
forecasts.
The group, which owns B&Q in
the UK as well as Castorama and
Brico Depot in France, has been
hit along with other European
retailers by a weak demand for
big ticket items like kitchens,
which are particularly vulnerable
to fragile consumer confidence.
Yet the company said yesterday
it is offsetting weak demand with
a drive to improve profitability by
buying more goods directly from
BY A CITY A.M. REPORTER
cheaper manufacturing centres
such as China.
Kingfisher said fourth quarter
like-for-like sales fell 3.4 per
cent, worse than the 2.8 per cent
fall seen in the third quarter.
But it expects underlying pre-
tax profit for the year to
2 February to be in line with the
consensus forecast of 715m.
B&Qs like-for-like sales fell
6.4 per cent, reflecting the weak
consumer backdrop
particularly in Ireland, where
stores were placed into a form of
bankruptcy protection.
In France like-for-like sales fell
0.4 per cent at Castorama and
4.6 per cent at Brico Depot.
Asda chief executive Andy Clarke is
investigating the horsemeat scandal
LEGO yesterday proved that old-
fashioned toys can beat computer
games, as the Danish toymaker
posted a surge in annual sales and
picked up global market share.
The firms net profit for 2012 rose
35 per cent to 5.6bn krone
(650.6m), on revenues 25 per cent
higher at 23.4bn krone.
The Lego Friends range, which
was launched at the start of 2012
and aimed at girls, has performed
considerably above expectations,
the company said. Most regions
produced double-digit growth in the
year, and direct web sales now make
up 10 per cent of overall turnover.
Lego said its share of the global
toy industry has risen from 7.1 per
cent in 2011 to 8.6 per cent in 2012,
and it expects to maintain
momentum in spite of the growing
popularity of more high-tech
gadgets.
The very positive results are first
and foremost related to the
continued successful innovation of
the product portfolio, the board
said in Legos annual report.
New launches account for 60 per
cent of Legos sales, and the firm has
160 designers in Denmark working
on product development.
The firm said it does not expect to
match its stellar performance in
2013 due to the uncertain economy,
though it sees considerable
medium-term sales growth.
Lego builds its
market share
as sales soar
BY MARION DAKERS
SPORTS DIRECT has shrugged-off any
signs of gloom on the high street
after posting a 23 per cent rise in
third quarter profit yesterday.
The sports retailer, controlled by
Newcastle United owner Mike Ashley,
said group sales for the 13 weeks to
27 January rose 21 per cent to
589.5m, driven by strong growth in
its sports stores, where sales rose
21 per cent to 495.8m.
This excludes revenues from the 20
JJB stores it bought last year after its
rival collapsed into administration.
The group, which owns Lilywhites
as well as the Dunlop and Slazenger
brands, has benefited from the
demise of its competitors, a growing
online presence and a highly moti-
vated staff due to a lucrative bonus
scheme.
Gross profits increased 22.7 per
cent to 244.8m and chief executive
Dave Forsey said it was certain of
reaching its full-year earnings target
of 270m.
As we highlighted back in
December, the groups strong per-
formance continued during the
Sports Directs
profits continue
winning streak
BY KASMIRA JEFFORD
third quarter, primarily driven by our
sports retail division, including
online following the successful inte-
gration of our new operating plat-
form, Forsey said in a statement.
Shares have soared 43 per cent since
last year and closed 5.7 per cent high-
er yesterday at 440p.
In September the firm said it want-
ed to reintroduce a super-stretch
bonus scheme to award Ashley 10m
shares if performance targets were
met after shareholders revolted
against a similar proposal in
September.
The group will put the revised
bonus plan to shareholders at its next
annual general meeting this year.
Sports Direct, controlled by Mike Ashley, saw profit rise 23 per cent for the third quarter
Sports Direct International PLC
21 Feb 15 Feb 18Feb 19Feb 20Feb
445
420
415
425
430
435
440
450 p
440.00
21Feb
FRIDAY 22 FEBRUARY 2013
13
NEWS
cityam.com
The company continues to benet from recent acquisitions, strong
momentum with the internet and capacity coming out of the market. The stock,
however, is expensive ... but with newsow on sales expected to remain
positive, we believe the shares will continue to perform.
ANALYST VIEWS

Sports Direct has announced excellent sales growth in its interim


management for the period to 27 January, driven by retail and growing online
penetration. We think that there is more to come and that this is not yet
reected in the valuation.

Sports Direct has reported group sales up 21.1 per cent (excluding JJB
stores). This is an acceleration on the underlying run-rate in the rst half of 20.6
per cent. Importantly, this strong sales growth has been achieved with
an improving gross margin prole.

DID SPORTS DIRECTS


RESULTS MEET YOUR
EXPECTATIONS? Interviews by Kasmira Jefford
FREDDIE GEORGE CANTOR FITZGERALD

PHILIP DORGAN PANMURE GORDON

SANJAY VIDYARTHI ESPIRITO SANTO


DAVID Cameron yesterday said it was
time to put people before profits as
he backed proposals by regulator
Ofgem to force suppliers to offer
customers their lowest variable
rate deal for electricity and gas
by default.
From next winter suppliers
will only be allowed to offer
four core tariffs per fuel type.
One of the tariffs
must be a standard-
variable rate, suppli-
ers can then choose
the other three
from a range of
options such as
fixed rate or
green.
Bills will also
be made clearer
to ensure cus-
Cameron backs
plan to simplify
energy tariffs
BY JAMES WATERSON
tomers are aware if they are missing
out on a better deal.
Our aim is that consumers will get
the best possible energy tariff no
tricks, no loopholes and we will use
the powers we gained in the Energy
Bill earlier this month to make
sure this happens, the Prime
Minister said.
However, former GB electricity
regulator Stephen Littlechild
warned the proposals would exac-
erbate fuel poverty. The
rules on tariff simplifica-
tion would encourage
coordinated effects by
suppliers and lead to
narrower price differ-
entials and again less
competitive pres-
sure, he said.
IN BRIEF
PayPal card reader for retailers
n Online payments company PayPal is
set to expand its presence on the high
street with the launch of a Chip & Pin
card reader it says will make face-to-
face payments easier. PayPal, which
started off in the 1990s processing eBay
payments, will release a portable card
reader directed at small businesses and
independent sellers. The company says
it will put an end to small retailers who
do not accept cards turning away
customers without cash.
Informas annual revenues fall
n Lloyds List publisher Informa
yesterday reported a three per cent
decline in annual revenues in 2012 as its
business publishing unit struggled to
attract sales. However, its academic
publishing unit, mainly comprised of
Routledge, saw a rise in sales. The sales
fall meant pre-tax profits dropped by a
quarter to 67m. However, the group
hiked its dividend as chief executive
Peter Rigby said he was confident of an
uptick in fortunes later in the year.
14
NEWS
cityam.com
Cameron said the plans
make energy costs
more fair for everyone
A HAIRDRESSER, a grocer and a
knitwear manufacturer were
among the nine individuals and
firms named and shamed as so-
called deliberate tax defaulters
yesterday in the first list of its kind
published by HM Revenue &
Customs (HMRC).
HMRC said the nine deliberate
defaulters for whom it revealed
names, addresses and the total
HMRC names and shames tax
dodgers in fresh clampdown
BY KATIE HOPE
amount of tax owed had each
avoided paying at least 25,000 in
tax. Added together, the total
amount of tax not paid amounted
to under 1m.
Treasury minister Stephen Gauke
said that the list sent a clear signal
that cheating on tax is wrong.
Stephen Camm, tax partner at
PwC, said the list, due to be updated
every three months, was effective as
one part of a wider strategy to
clamp down on tax evasion.
STRONGER than ever demand for
Bluetooth headsets drove shares in
microchip maker CSR to two-year
highs yesterday.
The Cambridge-based technology
firm saw annual revenues break the
billion dollar mark, hitting $1.03bn
(675m), a 21 per cent increase on
the previous year.
The company, which sees a big
opportunity in the rise of internet
Chipmaker CSR boosted by rise
in Bluetooth headset demand
BY JAMES TITCOMB
connected everyday objects such as
cars and household appliances, saw
much of its growth driven by
Bluetooth headsets in China,
following a clampdown on drivers
using mobile phones. CSRs low-
power chips are used in headsets as
well as in audio equipment.
Higher sales meant annual
profits rose from $34m to $51m,
which, along with a 15 per cent rise
in the companys dividend, sent
shares up more than 12 per cent.
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YOUR OFFICIAL HOSPITALITY PARTNER
EXECUTIVE pay in financial services
is barely creeping up this year and
will come in well below inflation,
according to new forecasts from
Mercer.
Average salaries will rise by just 2.2
per cent, they survey indicates, well
down on the 2.9 per cent rise last year
and firmly below consumer price
inflation currently running at 2.7
per cent and expected to rise to above
three per cent.
Public pressure and new regula-
tions have combined with weak mar-
ket conditions to weigh down on pay,
and the squeeze is not likely to lift
any time soon.
Those factors
mean pay is
rising more
quickly in risk
management
and legal serv-
ices, with an
Finance execs
pay squeezed
by regulations
BY TIM WALLACE average of 2.5 per cent anticipated.
But at the top of firms and in banks
the squeeze is tougher, with 49 per
cent of CEOs and 38 per cent of their
immediate juniors in banks expecting
pay freezes, says Mercer.
Financial services organisations
continue to face economic and regula-
tory uncertainty, said Mercers Vicki
Elliott.
Regulators are watching their com-
pensation policies and decisions with
great interest.
The study comes after high profile
bankers including RBS Stephen
Hester and Barclays Antony Jenkins
waived their bonuses for fear of
attracting public anger.
And European politicians are expect-
ed to cap bankers bonuses at the
same level as their salaries, formalis-
ing EU disapproval of high bonuses.
Meanwhile, new figures from
Income Data Services (IDS) show aver-
age salaries across the economy up 2.5
per cent on the year to the last three
months the fastest rise in pay since
summer 2012, but still below
consumer price inflation.
Barclays Antony
Jenkins waived his
bonus for last year
FRIDAY 22 FEBRUARY 2013
17
NEWS
cityam.com
IN BRIEF
Chesapeake Energy beats forecasts
n Profits at Chesapeake Energy fell
yesterday, although it beat Wall Street
estimates yesterday, helped by lower-
than-expected expenses and more
profitable production. Profits dropped
to $257m (169m) in 2012, down from
$429m in the same period in the
previous year.
PlayStation 4 event disappoints
n Sonys event promoting its upcoming
PlayStation 4 console was met with
disappointment yesterday, after the
company was short on detail over the
launch. On Tuesday night, the company
had failed to reveal the consoles design
or price. Sony shares fell 1.77 per cent.
EU goes to court over ebook VAT
n The European Commission is taking
France and Luxembourg to court for
applying lower taxes on ebooks, which
the EU says breaks current rules. The
commission says a VAT break on print
books does not apply to ebooks, but
France and Luxembourg apply rates of
seven and three per cent respectively.
Mercedes fined for fixing prices
n Mercedes-Benz and three of its
commercial vehicle dealers have been
fined 2.6m by the Office of Fair
Trading (OFT) for price fixing. The OFT
said there had been three instances of
market sharing and price coordination
on vans and trucks in 2008 to 2010.
CZECH miner New World
Resources swung into the red in
the final three months of last year,
in its biggest quarterly loss since
listing in 2008.
Coal producer New World
Resources fell to a loss of 48.6m
(42.1m) over the three months,
compared to a profit of 8.8m over
the fourth quarter of 2011.
The ongoing macroeconomic
uncertainties in Europe as well as
the slowdown in Asia have affected
business sentiment, and this has
had a knock-on impact on steel
markets, and... coking coal,
chairman Gareth Penny said.
Losses spike
at New World
BY CATHY ADAMS
CANADIAN train-maker Bombardier
said yesterday that its results are
not reflective of our potential
after it reported a 93 per cent drop
in fourth-quarter earnings to just
$14m (9.2m).
Full-year profits at the firm fell to
$692m from $865m, hurt by a
restructuring charge in its
transportation division, while
revenues dipped to $16.8bn from
$18.3bn.
Bombardier said it expects
revenue in its transportation and
aerospace divisions to be higher this
year. The firms Canadian-listed
shares fell over eight per cent.
Bombardier
earnings dive
BY AMY-JO CROWLEY
PLASTICS group Filtrona
yesterday reported a 26 per
cent rise in full-year profit,
helped by acquisitions.
Filtrona also said it
acquired Ulinco
Components AB, a Sweden-
based distributor of plastic
protection and finishing
products.
It also announced a
joint venture with tobacco
company BBM Bommidala
Group in the United Arab
Emirates.
Adjusted pre-tax profit
rose to 95.8m in 2012,
from 76.2m a year
earlier.
Revenue increased by
23 per cent to 663.4m.
Our results were
supported by successful
new product development,
range expansion and
geographic roll-out, and
were underpinned by
further investment,
organisational changes
and a more focused
commercial structure,
said Colin Day, chief
executive of the FTSE 250-
listed firm.
Expansion pays off at
Filtrona as profit soars
BY HARRY BANKS
For more jobs information go to

CITYAMCAREERS.com
US MANUFACTURERS boosted
output at the fastest rate since
March 2011, according to data out
yesterday.
Markits manufacturing
purchasing managers index (PMI)
for output jumped from 56.8 in
January to 58.1 this month, a 23-
month high. Since it is further
above 50, it suggests a yet faster
pace of activity growth in the
factory sector.
But the overall PMI, which takes
order books, employment, backlogs
and inventories into account, as
well as output, inched down from
55.8 to 55.2, signalling slower but
still substantial expansion in
industry overall.
And consumer prices stayed
completely flat between December
and January, according to separate
data from the Bureau of Labor
Statistics (BLS). This allowed the
annual inflation rate to fall from
1.7 per cent in December to 1.6 per
cent last months, the BLS said.
But labour market numbers did
not give such a positive impression
of the US economy. New
unemployment insurance claims
jumped 20,000 to 362,000 in the
week ending 16 February, the
Department of Labor revealed,
while total insured unemployment
edged up 11,000 to reach 3,148,000
in the previous week.
US sees fastest
factory output
hike since 2011
BY BEN SOUTHWOOD
EUROZONE business activity sunk fur-
ther and at a faster pace in February,
as the bloc proved unable to escape
from its lengthy crisis.
Markits purchasing managers
index (PMI) for the currency zone
slipped back to 47.3 in the second
month of 2013, having risen to 48.6
during January. Since this is further
below 50, which indicates no change
in business activity, it suggests output
falling at an even faster rate.
A steepening rate of decline in
February is a disappointment, and
suggests that the Eurozone is on
course to contract for a fourth consec-
utive quarter in the first three
months of the year, said Markit chief
economist Chris Williamson.
Beneath the headline figures there
was a sharp divergence between the
blocs largest two economies,
Germany and France.
French private sector output was in
freefall in February, according to its
PMI of 42.3 a 47-month low down
from 42.7 last month.
By contrast Germany enjoyed con-
tinued expansion though at a slow-
French troubles
could extend
Eurozone crisis
BY BEN SOUTHWOOD
er rate. It posted a PMI of 52.7, some 10
points higher than France, and indi-
cating expansion, albeit at a slower
rate compared to Januarys 54.4.
Digging into the data shows increas-
ing schisms within the Eurozone,
Williamson added.
National divergences between
France and Germany have widened so
far this year to the worst seen since the
survey began in 1998.
And businesses in France and
Germany expect this stark divergence
to go on. German services firms
recorded a 20-month high in opti-
mism for the coming year, while
French business confidence was at a
three-month low.
France and Germany diverge as Eurozone slump continues
1999 2004 2008 2013
20
30
40
50
60
70 Total economicactivity, 50=nochangeonpreviousmonth
Germany
France
Restof Eurozone
S
o
u
r
c
e
: M
a
r
k
i t
BRITISH factory orders improved
more than expected this month,
according to data released
yesterday.
The total order book balance in
the Confederation of British
Industrys (CBI) survey rose this
month to minus 14 from minus 20
in January, beating expectations of
a reading of minus 15 and well
above the long-term average of
minus 17. The CBIs index for
export orders also rose sharply,
from minus 29 to minus 20.
The rebound in manufacturing
orders and expectations for output
Boost for UK manufacturers as
February sees pick up in orders
BY BEN SOUTHWOOD growth provide some further signs
of improvement in the outlook for
the UK economy, said Anna Leach,
the CBIs head of economic
analysis. However, Leach warned
export orders were likely to remain
weak until conditions in the
Eurozone economy improved.
But consumer spending power
came under a further squeeze in
January, separate data showed this
morning. Consumers had 1.4 per
cent less to spend on non-essential
items in real terms in the first
month of 2013, approximately 13
less per month, Lloyds said. This
was due to rapid inflation
outpacing slow wage growth.
FRIDAY 22 FEBRUARY 2013
18
NEWS
cityam.com
Lingering global economic woes have made life difficult for Britains factories
SHOCKED French industry minister
Arnaud Montebourg has put pen to
paper and sent a spluttering
response to US tyre firm Titans boss
Maurice Taylor in defence of
Frances favourable way of life.
In Taylors letter, which The
Capitalist reported on yesterday, he
declined an offer to buy a French
tyre factory, criticising French work-
ers for taking long lunches and only
working three hours a day.
There were certainly no
bisous on Montebourgs
response: Can I also
remind you that Titan...is
20 times smaller than
Michelin, our French tech-
nological leader of interna-
tional standing, and 35
times less profitable?
Montebourg says,
apparently immune
to Taylors warning
that in five years, Michelin wont
be able to produce tyres in France
and that China will be making all
the running.
Rather ominously, Montebourg
also weighs in on American politics:
You will also find that our current
policy bears a similar relationship to
that inspired by your President.
Finally the French minister closes
with a hint at greater protectionism:
Rest assured you can count on me
to keep a close eye on the services
provided by the French govern-
ment, and with an increased zeal
on your imported tyres. Nice to
see the traditional Gallic art of
letter-writing hasnt been lost
after all, even as Frances reputa-
tion among the global business
community hits new lows.
French industry
minister Arnaud
Montebourg
FRIDAY 22 FEBRUARY 2013
20
NEWS
cityam.com
Find
your
next
step at
C
I
T
Y
A
M
C
A
R
E
E
R
S
.
c
o
m
Withers
The law firm has announced
the appointment of
Matthew Feargrieve as a
partner. Feargrieve will be
responsible for establishing
a pan-European investment
funds practice. He joins from
Appleby, where he was a
partner and team leader for funds and
investment services. He has also held
senior positions at Mourant du Feu &
Jeune and Maples & Calder.
BlueBay Asset Management
Staffan Kampe will join the asset
management firm as sales director for
the Nordics region. He joins from
Lyxor Asset Management, where he
was a head of institutional sales. Prior
to that, he spent 11 years at SEB in a
range of roles including product
development.
JP Morgan Private Bank
The bank has announced the appointment
of Andrea Levantini as a private banker in
its Italy team. Levantini joins from Banca
IMI, where he was the head of
international equity capital markets in
London. Prior to that, he was a managing
director in the corporate finance team at
Deutsche Bank in Rome and London.
Barclays
The bank has appointed Vikram Malhotra
as global head of its global South Asia
community business. He joined Barclays
in 2010 as head of its South Asia wealth
and investment management division.
AMG
The asset management firm has
announced the appointment of two new
directors to its European distribution
team. Patrick Sege was most recently
head of sales and business development
for continental Europe at Liongate. Axel
Weiss was previously a director of sales
and relationships at Fidelity.
WHOS SWITCHING JOBS Edited by Annabel Palmer CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
cityam.com/the-capitalist
THECAPITALIST
EDITED BY CALLY SQUIRES
Got A Story? Email
thecapitalist@cityam.com
Zut alors: French
minister rattled
The Capitalist learns that broker
John Rees is going to showcase his
rather unusual talent to colleagues next
month at The Troxy. Rees, who works for
Nordic investment bank Carnegie, enjoys
a spot of cage-fighting in his spare time.
Rees says his bosses are extremely
supportive of his extra-curricular
activities: No office normally allows
people to come to work with black
eyes. The Capitalist hears that some of
his colleagues will even be jetting in
from Sweden on 2 March, just to watch
the 32 year-old step into the cage. Given
that hes only trained for ten weeks, The
Capitalist wishes Rees the best of luck.
FRIDAY 22 FEBRUARY 2013
21
cityam.com
In association with
LONDONREPORT
B
RITAINS blue chip shares
posted their biggest one-day
loss since July yesterday on
concerns the Federal Reserve
could end its stimulus programme
sooner than expected, removing a
driver of the recent equity rally on
both sides of the pond.
The FTSE 100 closed down 103.83
points, or 1.6 per cent, at 6,291.54,
dropping below the 6,300 level for
the first time in 10 days. Stocks that
benefit the most in rising markets,
or cyclicals, fell furthest.
The indexs decline was the biggest
since last July, at the height of the
Eurozone crisis and just a few days
before European Central Bank chief
Mario Draghi promised to do what-
ever it takes to save the euro,
prompting a global rally in equities.
Commodity stocks and banks com-
bined to take over 50 points off the
FTSE 100 index, and volatility
jumped 13 per cent. Investors
became cautious after minutes of
the Federal Reserves January policy
meeting showed a number of policy-
makers think the US central bank
might have to slow or stop its asset
purchase programme before seeing
the pickup in hiring the programme
is designed to deliver.
The biggest impact [on todays
falls] has been the Fed minutes, and
supposedly a more hawkish tone by
the Fed, James Butterfill, global
equity strategist at Coutts, said. Still,
he expected the Fed to continue with
asset purchases, or quantitative eas-
ing, in the near term. Its also off
the back of how much markets have
run up year to date. Weve already
surpassed our base-case fair value on
the FTSE within the first month and
a half, so its not surprising wed see
a pullback.
The market had closed at a five-year
high on Wednesday, marking an 8.4
per cent gain so far this year, against
a 5.8 per cent rise for the whole of
last year.
Also weighing on sentiment yester-
day were worse-than-expected
Eurozone purchasing managers sur-
veys, which dealt a blow to hopes the
currency bloc might emerge from
recession soon.
Mining stocks were the biggest
drag on the FTSE 100 as concerns
about an end to US monetary stimu-
lus hit a sector already hampered by
weaker metals prices and market
talk of a hedge fund liquidating big
positions in commodities.
BHP Billiton was among the worst
off, tumbling four per cent. It
extended falls from the previous ses-
sion when it reported its worst profit
drop in more than a decade, with
Citi downgrading its rating on the
stock to neutral.
All but seven blue chip stocks fell in
the broad-based sell-off.
BAE was the biggest riser, gaining
4.1 per cent.
Cyclical stocks
drop after Fed
warns over QE
CITY
YOUR ONE-
STOP SHOP
BROKER VIEWS AND
MARKET REPORTS
FTSE
21 Feb 15 Feb 18 Feb 19 Feb20 Feb
6,300
6,325
6,350
6,375
6,400
6,425
6,291.54
21 Feb
DASHBOARD
Growth fears
push Wall St
down again
U
S stocks fell for a second
straight day yesterday and the
S&P 500 posted its worst two-
day loss since November after
reports cast doubt over the health of
the US and Eurozone economies.
But a late-day rally helped stocks
erase some of their losses with most of
the pullback concentrated in the tech-
nology- heavy Nasdaq. The move sug-
gested investors were still willing to
buy on dips even after the sharp losses
in the last session.
In Europe, business activity indexes
dealt a blow to hopes that the
Eurozone might emerge from reces-
sion soon, showing the downturn
across the regions businesses unex-
pectedly grew worse this month.
The PMI numbers out of Europe
were really a blow to the market, said
Jack De Gan, chief investment officer
at Harbor Advisory in Portsmouth,
New Hampshire. The market was
expecting signs that recovery is still
there, but the numbers just highlight-
ed that the Eurozone problem is still
persistent.
US initial claims for unemployment
benefits rose more than expected last
week while the Federal Reserve Bank
of Philadelphia said its index of busi-
ness conditions in the US mid-Atlantic
region fell in February to the lowest in
eight months.
Gains in Wal-Mart Stores shares
helped cushion the Dow. The shares
gained 1.5 per cent to $70.26 after the
worlds largest retailer reported earn-
ings that beat expectations, though
early February sales were sluggish.
The Dow Jones industrial average fell
46.92 points, or 0.34 per cent, to
13,880.62 at the close. The Standard &
Poors 500 Index lost 9.53 points, or
0.63 per cent, to 1,502.42. The Nasdaq
Composite Index dropped 32.92
points, or 1.04 per cent, to close at
3,131.49. The two-day decline marked
the US stock markets first sustained
pullback this year.
BESTof theBROKERS NEW YORK
REPORT
CARILLION
Liberum Capital has reiterated its Sell rating on construction business Carillion
ahead of next weeks interim results, with a target price of 322p. The analysts expect
to a see reduced order book for future work in the face of a tough UK construction
market, as well as a disappointing outlook in the Middle East. Overall Liberum judges
the companys stock to be relatively expensive on estimates with downside risk.
Carillion PLC
15Feb 18Feb 19Feb 20Feb 21Feb
p
320
315
325
310
305
330
316.20
21 Feb
THOMAS COOK GROUP
Jeffries has initiated coverage on Thomas Cook with a Buy rating and a 155p price
target. It praises new chief executive Harriet Green for identifying 160m of cost
savings, with more on the way and says it is looking forward to a more focused
Thomas Cook driving profitable growth from its 23m strong customer base. It says
2012 should mark the low point for profitability at the business.
Thomas Cook Group PLC
15Feb 18Feb 19Feb 20Feb 21Feb
p
94
92
96
90
98
92.75
21 Feb
MICRO FOCUS
Merchant Securities has downgraded Newbury-based technology firm Micro Focus
to Sell with a target price of 600p following a 47 per cent rise in its share price
gains over the last year. While free cash flow generation remains strong,
suggesting ongoing cash returns in the future, these now appear largely priced in,
the note says, suggesting it will be hard to maintain recent cash returns.
Micro Focus International PLC
15Feb 18Feb 19Feb 20Feb 21Feb
p
670
660
680
640
650
690
654.00
21 Feb
To appear in Best of the Brokers, email your research to notes@cityam.com
Capital Spreads is a trading name of London Capital Group Ltd (LCG), which is authorised and regulated by the Financial Services Authority and a member of the London Stock Exchange.
a) Eat less pork and consider
becoming vegetarian
b) Sell the Euro in expectation that the
Eurozone will eventually break-up
Focus swings back onto the PIIGS
as the euro crisis deepens. Do you:
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Can you prot from your predictions? Apply today at CapitalSpreads.com, great value for Spread Betting and CFDs.
T
WO VISIONS of our
technological future are
battling it out this week.
Google has released a
promotional video celebrating
the potential of its astonishing, voice-
activated heads-up display Google
Glass, complete with acrobats on
video chat in mid-air. Meanwhile, the
new series of Charlie Brookers TV
show Black Mirror continues with a
bleak satire, White Bear, that shows a
world where constant use of
videophones serves to distance and
brutalise, rather than bring us closer
together.
Anyone who has tried to navigate
an automated call tree in the blind
hope of reaching a human being
knows how improved technology can
T
HE coalitions pursuit of
competition in healthcare may
have grabbed the headlines, but
it was the Ministry of Justice
that had made the most
headway. In 2011, its Competition
Strategy set out a guiding principle
that competition will apply to all
services not bound to the public sector
by statute. After two decades of limited
competition, the message was clear:
the vast majority of prisons, probation
and rehabilitation services would be
delivered by a range of providers
public, private and charitable
competing to deliver a better, cheaper
service.
Sadly, it was not to be. Two years on,
the Ministry of Justice has completed a
U-turn far greater than the coalitions
retreat on extending competition in the
NHS. At the end of 2012, ministers
announced plans to overturn two
decades of privately-run prisons in
favour of a new approach. The role of
companies will be limited to small con-
tracts for rehabilitation and ancillary
services, while the public sector will
subjected to an efficiency benchmark
cityam.com/forum
The first prison to be
transferred from the
public sector now costs
8m less a year to run
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

22
FRIDAY 22 FEBRUARY 2013
WILL TANNER
Coalition U-turn on private prisons
will undo 20 years of real progress
instead. HMP Wolds, a privately-run
prison, was handed back to the public
sector, and the competition processes
for three others were suspended.
But the evidence points towards the
need for more competition, not less.
New Reform analysis of Ministry of
Justice figures shows that companies
are better at running prisons than the
public sector. Private prisons are more
effective at preventing prisoners from
committing crimes after they leave,
and they perform better than compara-
ble public sector institutions on most
official performance measures. This is
about cost as well as quality: the first
prison to be transferred from the public
sector to the private sector, HMP
Birmingham, is being run 8m a year
cheaper under its new management.
The innovations range from smart
tweaks to cultural transformation.
Companies have pioneered new tech-
nologies, like electronic cell locking to
improve security, or self-service kiosks
to give inmates a greater sense of
responsibility in preparation for their
release. Private sector ways of working
have transformed an outdated employ-
ment culture and traditionally hostile
staff-prisoner relations. In privately-run
prisons, officers do not carry batons or
have power of arrest, and managers can
use flexible staffing arrangements to
improve rehabilitation and meet pris-
ons needs.
At Doncaster Prison, the private com-
pany Serco has used its business experi-
ence to drive partnerships with local
charities and employers to prevent pris-
oners committing crimes when they
leave the prison gates. Over 92 per cent
of prisoners are released to suitable
accommodation, while 23 per cent
double the national target are
released into employment or training.
In 2011, Sercos prison director at
Doncaster John Biggin was named The
Guardians Public Servant of the Year.
Better numbers are matched by aca-
demic evaluation: a major longitudinal
study by Cambridge academics recently
found that privately managed prisons
had more positive staff-prisoner rela-
tionships, better internal prison cul-
tures, and more satisfied workers.
The threat of competition has also
made the public sector raise its game.
In 2003, the National Audit Office
found that competition has been
important within the prison system for
improving both management and con-
ditions for prisoners. More recently,
evidence of the positive impact of com-
petition has come from an unlikely
source: public sector prison managers.
In 2011, a major survey of senior prison
leaders found overwhelming recogni-
tion of the value of competition. One
respondent said: I dont think the
improvements weve seen in the Prison
Service in delivery and outputs would
have happened without the threat of
privatisation, and without the reality of
privatisation, because we wouldnt have
done it ourselves. There wouldve been
no incentive.
The government has argued that
there has been no U-turn. Yet ministers
own announcements make clear that
competition will be limited to a small
number of specific services. The prison
workforce, which accounts for over 70
per cent of costs, will remain in the
public sector, despite there being no
statutory requirement for it to do so. It
is bewildering that the government has
backtracked on such a successful policy
that commands cross-party support.
There was no public uproar demanding
a retreat from two decades of successful
policy. Far from reaping the rewards of
reform, ministers are throwing in the
towel after the fight has been won.
Will Tanner is a senior researcher at the
independent thinktank Reform.
be a curse as well as a blessing. But
even if Google Glass doesnt set fire to
your imagination, you dont have to
search far to be reminded that we
live in an age of man-made wonders.
Download the new Kickstarter app,
or look at projects like the 3Doodler,
a 3D printer in a pen that lets you
draw real objects.
Ironically, a short story from 1895
captures these mixed blessings
better, finding a path between the
wide-eyed optimism of corporate PR
and the savage denunciation of
Brooker. The Remarkable Case of
Davidsons Eyes was written by sci-fi
master HG Wells on the back of
popular belief in a paranormal
experience called remote viewing. Yet
it serves today as a parable of the
challenge and the miracle of living
with one foot in the real and virtual
worlds. It records how Davidson, a
Londoner, is suddenly struck with a
vision as if standing on an island in
the south seas. It is at first
compelling and paradisical. But his
inability to navigate the London in
which he lives, while his eyes see only
sand and palm trees, turns the
experience into a nightmare.
Davidson is eventually cured, only to
regret the window to a wider world
he has lost.
We all suffer when barriers prevent
us from seeing the human face of
those who need our help. As a result,
the technologies produced by private
enterprise reflect our need for better
connections. We love our gadgets
because they are designed and used
to bridge the gaps from person to
person. Mobile phones helped some
of the doomed passengers of 9/11 say
goodbye to their loved ones.
Television brings the suffering of
strangers on the other side of the
world into our living rooms,
demanding our attention. Our
gadgets can be misused, but they are
built to tear down barriers, not to
erect them.
Technology, in combination with
trade, serves to link the worlds
people in a network devoted to
serving one anothers needs. Neither
offers a cure for lifes tragedies or
human folly and vice. Life is not a
Google promo. But our recent
national scandals of abuse and
neglect have revealed the wilderness
of inhumanity possible within
institutions devoted to public service.
We need to be clear-eyed about the
darkness we bring with us to the
future, however we build it. But we
should cheer the larger, richer world
technology can show us as well.
Marc Sidwell is managing editor at
City A.M.
THE LONG
VIEW
MARC SIDWELL
Google Glass wont save humanity but could show us a larger richer world
In association with
BREST IS
For the best in sailing, seafood and local history, y to Brest from just 129 return.
23
FRIDAY 22 FEBRUARY 2013
Runaway inflation
[Re: Sorry savers: More easing is still
needed to support UK recovery, yesterday]
Employment is at its highest level since 1971.
Meanwhile, real wages are being driven
down by runaway inflation induced by the
Bank of Englands weak pound policy. In
past recessions, it was the UK consumer that
was the driving force behind recovery. But
this time, the Banks failure to meet its
mandate is suffocating real spending power.
The Monetary Policy Committee is confused.
In 2008, it was rightly fearful of deflation.
But since 2009, its fears have proven
misguided, and it has made the situation
worse by further rounds of quantitative
easing. Now the Bank is looking to get back
to its target in the long run. It would have
been interesting to see the UKs
economic performance if the Bank of
England had not let inflation spike as high
as 5.2 per cent in September 2011.
John Trader
[Re: Taxing the poor less wont make them
back hikes for the rest, yesterday]
Matthew Sinclairs article leaves a big
question unanswered. If taking people out
of tax doesnt turn them into supporters or
opponents of higher taxation for others,
what does? He implies there is a mixture of
reasons. Political will is clearly hugely
important.. Margaret Thatcher could cut tax
because she showed the benefits of lower
taxation to all voters, not just to small
sections of the public.
Malcolm Cliff
B
RITAINS roads are being
choked by a swarm of
unnecessary, expensive, and
damaging restrictions.
Between 2000 and 2008, the
number of traffic lights rose by over
30 per cent, boosted by an extra 1,800
imposed on Londons streets under
former mayor Ken Livingstone. There
are now over 30,000 signal-controlled
junctions and 25,000 pelican
crossings across the country.
The nature of these controls has
also changed. Between 2007 and
2008, the number of signals giving
priority to buses more than doubled
to 8,500. Junctions with a full pedes-
trian crossing -- when all vehicles are
held at a complete standstill have
also become increasingly popular.
There has been little appreciation,
however, of the economic costs asso-
ciated with such controls. This is
unsurprising given the absence of
commercial incentives facing trans-
port planners. With approximately
33m vehicles in the UK, unnecessary
delays at junctions translate into
major economic losses.
To give some idea of the scale, it has
been estimated that just two minutes
added to all vehicle trips costs 12bn
annually. There is also the burden on
taxpayers for installing and main-
taining infrastructure and equip-
ment. And traffic jams resulting
from controls increase fuel use and
pollution levels, while driver behav-
iour near traffic lights (speeding up
to beat the green) heightens danger.
The latest safety audit from
Westminster City Council showed
that no less than 44 per cent of per-
sonal injury accidents occurred at
traffic lights.
A handful of local authorities have
begun to recognise these negative
effects. In 2009, lights were switched
off at the Cabstand double junction
in Portishead, near Bristol. Despite an
After interest on QE gilts boosted UKs 11.4bn
January surplus, do the figures lack credibility?
YES
The public sector finances demonstrate the problems caused by the
statistical fudges of the past couple of years like the transfer of
coupon interest that the Bank of England has earned from buying
gilts under its programme of quantitative easing. Its difficult to
decipher the underlying trends. It appears that the state of the
public finances is worse than the government had hoped for, and
there is virtually no chance that borrowing will be lower this year on
a like-for-like basis. Further, the Office for National Statistics has put
a ceiling of 9.1bn on the amount of cash that can be transferred
from the Bank of England to the government this year, meaning
that the reduction in borrowing caused by the transfers will be 5bn
less than the Office for Budgetary Responsibility (OBR) has
forecast. Therefore, the government is on course to miss the OBRs
borrowing forecast by a distance of almost 11bn.
Nida Ali is an economic adviser to the Ernst & Young ITEM Club.
Nida Ali
NO
Robert Wood
The latest public sector finances figures show a surplus of 11.4bn
in January, and include the first transfer of accumulated interest
on the Bank of Englands gilt holdings of 3.8bn. Excluding this,
the underlying surplus was 7.6bn 1.2bn better than in
January 2012. But the transfer of coupon payments is not
fundamentally that big a deal its just a transfer of cash from
one part of the public sector (Bank of England) to another (the
Treasury). Its more important politically, since the chancellor has
used the transfers to disguise the governments borrowing
trajectory. He cannot hide the fact that deficit reduction has gone
into reverse. Borrowing is now likely to overshoot the
chancellors forecasts. So expect a repeat of George Osbornes
Autumn Statement performance at next months Budget
growth down and deficits up.
Robert Wood is an economist at Berenberg Bank.
How clever traffic
management can
boost UK growth
increase in traffic, queues disap-
peared, journey times fell by over 50
per cent, and there was no decline in
road safety.
A more recent and wider-ranging
study suggests that the benefits of
removing controls go further. In the
biggest scheme seen in the UK so far,
Poynton in Cheshire has removed
traffic lights and highway clutter at
Fountain Place, a major crossroads
carrying 26,000 vehicles a day
through the heart of the village. Now
there is an attractive, open
streetscape in which free-flowing
traffic interacts sociably with pedes-
trians. Not only have delays dropped
markedly, but since the scheme was
unveiled six months ago, trading
activity in local shops has doubled.
This alternative approach to traffic
management has brought substan-
tial regeneration benefits as a result
of reducing the delays and negative
environmental effects associated
with traffic controls.
The accumulating evidence from
such studies strengthens the case for
an about-turn on traffic policy. A first
step would be to end the funding of
new traffic control schemes, which
threaten to increase further the costs
imposed on road users, taxpayers and
local residents. Policymakers should
look closely at Poynton a blueprint
for delivering substantial economic
and quality of life benefits stemming
from a different approach to traffic.
Martin Cassini is a TV programme
maker and traffic campaigner, and a
writer for the Institute for Economic Affairs.
MARTIN CASSINI
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BEST
CITYSAVER RETURN FARE INCLUDES ALL TAXES. Correct as of 21 February.
Non-refundable, non-changeable. Subject to conditions and availability.
From London City Airport. Book at cityjet.com
Government borrowing is still up by 1.6 per
cent on last year, despite the healthy surplus
in January because of weak growth.
@WilliamsonChris
George Osbornes smoke and mirrors
disappears in a puff of smoke. How will he
claim that borrowing is falling now?
@West_GP
Osborne included 4G receipts and gilt
interest payments to make it appear the
deficit will fall this year.
@Fusty_Luggs
Its a year since the EU solved the Greek
crisis with its final, definite, massive bailout.
Hows that working out for them?
@DanHannanMEP
BEST OF TWITTER
LETTERSto the editor
WE WANT TO HEAR YOUR VIEWS
E: theforum@cityam.com | Comment: cityam.com/forum | @cityamforum
24
FRIDAY 22 FEBRUARY 2013
cityam.com
PROPERTY
W
ITH ECONOMIC output
falling in the final quarter
of 2012, hopes were high
that the residential market
would recover at the start of 2013. So
far, things are looking positive.
After what was a tough year in
2012 with the extreme weather, the
Olympic and Paralympic Games and
a stagnating economy, I am cau-
tiously optimistic about the
prospects for the prime London
market in 2013, says Nick Barnes,
head of research at Chesterton
Humberts. A number of key indica-
tors are looking very positive and
the success of Circus West has pro-
vided further proof of the high level
of demand for prime residential
property in London.
Analysts report that last month was
the best January for the past two years
and according to a survey compiled
by property analysts Hometrack, 79
per cent of estate agents are more
upbeat about the market than they
were last year.
In January, house prices were gener-
ally flat after six months of signifi-
cant falls, with only 16 per cent of
postcodes in the capital experiencing
a decline.
Low levels of transactions have
meant that positive developments
have been localised but estate agents
are optimistic that things will pick up
in the spring. The pipeline at
Chesterton Humberts, for example, is
already 41 per cent higher than the
same time last year and the highest it
has been since 2009.
One of the key areas of improve-
ments is with mortgages. Lenders
have reduced their rates and
increased lending. This should go
some way towards restoring customer
confidence and releasing the pent-up
sales demand of the past few years,
says the estate agent.
But its not all good news. A report
issued by Knight Frank says it is
unclear whether hopes for a signifi-
cant boost in mortgage lending, fol-
lowing the Bank of Englands
multi-billion Funding for Lending
scheme, will be met. This is because,
despite the reduced rates, the num-
ber of mortgage approvals is current-
ly the same as it was in the wake of
the financial crisis. Some economists
have argued that it is too early to see
any real change and that any effects
will be apparent later into the year.
The success of the rental sector has
been mixed. While the questionable
impact of the Funding for Lending
scheme, combined with the rise in
credit problems, particularly among
young people, has had a negative
effect on mortgages, it has increased
demand for the private rental sector.
However, its not all plain sailing.
Knight Franks report highlights that
the continued economic uncertainty,
combined with threats to employ-
ment in the financial sector, has
meant that the 1,000-2,000 a week
market, which has traditionally been
supported by affluent City workers,
has suffered.
Central London is among the more
promising areas in the UK. The
appetite for real estate there, which
sharpened last year, looks set to grow
in 2013. Knight Frank found that the
proportion of 1m plus sales in
London to non-UK buyers rose to 51
per cent late last year, with their
share of sales of properties priced
above 5m rising to 60 per cent.
South Kensington is a consistently
popular choice for international buy-
ers looking to London as a safe haven
to store their wealth amid the global
economic instability. Affluent areas
like Knightsbridge and Belgravia were
also in demand, with house prices in
the former climbing by 14.6 per cent
and the latter, by 12.4 per cent in
2012.
Experts have found that buyers are
attracted to the capitals political sta-
bility, competitive exchange rate and
top class universities and schools, and
problems in the Eurozone has enticed
the French, Greek and Spanish, who
have become among the fasting grow-
ing nationalities by market share.
And its not only central London
that is benefiting. According to
Chesterton Humberts: There is
demand for properties in decen-
tralised locations, offering proximity
to good local schools and easy access
to central London, with the new
build market in areas like Docklands
doing particularly well. Singapore
and Hong Kong investors took a 23
and 16 per cent share respectively in
the sector, according to Knight Frank,
and are increasingly prepared to gam-
ble on competitively priced develop-
ments.
These factors have helped the capi-
tal start the year on a high note, with
experts recording a healthy 8.7 per
cent price growth compared to a 1.4
per cent growth in New York and a
four per cent decrease in Paris.
The residential property market
shows signs of recovery for 2013
Analysts report the best January in two years, says Naomi Mdudu, with central London booming and rental demand high
The outlook for
the prime London
market is one of
cautious optimism.

Ionian Building, Narrow Street E14


450,000leasehold
A 912 sq ft 2 bedroom, 2 bathroom apartment situated in this sought-after Narrow Street
development located within 200 metres of Limehouse DLR.Additional features include
underground parking for 2 cars, a balcony, foor-to-ceiling windows & 24hr concierge.

EPC rating C
New Atlas Wharf, Arnhem Place E14
475 per week
A modern 2 bedroom apartment in this popular riverside development. Te apartment boasts
a large reception room with direct access to a private balcony overlooking the park & river,
separate fully ftted kitchen, excellent storage & a secure parking space.
EPC rating C
Canary Wharf & Docklands
020 7510 8300
sales.canarywharf@chestertonhumberts.com
Canary Wharf & Docklands
020 7510 8310
lettings.canarywharf@chestertonhumberts.com
Te Leatherwork, Tanner Street SE1
575,000 leasehold
A spacious 2 bedroom apartment situated on the 1st foor of this modern building which
benefts from a lift & porter . Te accommodation further includes 2 bathrooms, 2 terraces
& an open plan kitchen/reception room.

EPC rating B
Frobisher Crescent EC2Y
500 per week
A beautifully presented 1 bedroom duplex apartment situated on the 9th foor of this recently
refurbished development in Barbican. Te apartment benefts from a balcony, lift & porter.

EPC rating B
Tower Bridge & City
020 7357 7999
sales.towerbridge@chestertonhumberts.com
Tower Bridge & City
020 7357 6911
lettings.towerbridge@chestertonhumberts.com
chestertonhumberts.com
Get more out of life
at Kidbrooke Village
More space, more time, more leisure as well as an outstanding choice of quality
homes surrounded by parkland and facilities that make life as easy as its ever been.
All this just 15 minutes from London Bridge*.
Coming soon to Kidbrooke Village - exciting new phases, Blackheath Quarter and Meridian Gate
Register your interest now, call 020 8150 5151

Proud to be a member of the
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www.kidbrookevillage.co.uk/more
Delivered in proud partnership with:
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FRIDAY 22 FEBRUARY 2013
28
cityam.com
LIFE&STYLE PROPERTIES OF THE MONTH
Q
IM BUYING a flat and am
worried that someone is
going to gazump me. What
can I do to stop this
happening?
A
Trouble here is that the law
says that any offer put up,
and this could come from
someone whos seen the flat
before, has to be reported to the
owner.
If that offer is higher, greed
kicks in and best intentions often
go out of the window. In reality,
preparation counts make sure
you have a good, recommended
solicitor who knows the patch
and, most importantly, a ready
mortgage.
My preference is to make sure a
broker is involved, or at least
someone at your mortgagees who
is a communicator. Sadly, most
lawyers dont get paid on
performance so arent always as
motivated as you are, and most
mortgage outfits are snowed
under, so a broker, who is
performance orientated and
knows where, and who, to push,
will help.
You can opt to give the seller a
deposit as a sign of good faith and
some agents ask for a non
refundable deposit. My
experience is that legal
complications render them
useless but a goodwill deposit
accepted by the seller might go
some way in bolstering your case
if you decide you want to fight for
the flat.
DIRECTOR, DOUGLAS & GORDON
ED MEAD
Q
A
and
A good broker might be the best solution against gazumping
Be among the first to invest in the new Canning Town
Period features meet
contemporary luxury
living at Aldford House
C
HARLES DICKENS may not have
spoken favourably about the
area in the mid-nineteenth
century, but Canning Town is
undergoing considerable changes.
Vermillion, a new development in
the heart of the thriving area, is
helping with the transition.
This month saw the launch of two
new penthouse apartments in the
luxury block, which span the top
two floors of the modern develop-
ment, offering the best in open-plan
living. Priced from 695,000, both
feature three large bedrooms and
have already attracted a lot of atten-
tion.
Penthouse living is so highly
sought after in London, says Pauline
Sangster, residential sales and mar-
keting manager of English Cities
Fund, the developer behind
Vermillion. We have already
received a lot of interest, which we
believe is not only because of the
breathtaking views, but also due to
Vermillions proximity to Canary
Wharf.
The location has from excellent
links to Central London and
Stratford via the Jubilee line and to
the City via the Docklands Light
Railway. Road users have access to
the A3 for access to the M25 and
transport links are set to improve
when the Crossrail extends to
Custom House later this year, allow-
ing access to Heathrow airport with-
in 46 minutes.
The penthouses feature floor to
ceiling windows, giving plenty light;
the kitchens boast Zodiac Quartz
worktops and Bosch appliances and
the living room has a sweeping stair-
case as the main feature. The most
sought after aspect of the properties,
though, are the balconies, which
offer remarkable views of London.
The building has benefits for the
environmentally concerned home-
owner too. It comes equipped with
an eco-garden harvesting water shed
from nearby roofs; a green heating
system to ensure efficient energy
consumption; and the option for res-
idents to grow plants, fruits or veg-
etables in one of the designated
allotments.
The development is also proving
popular amongst homeowners keen
to invest in the area at the start of
the regeneration, before prices
increase.
Canning Town is currently enjoy-
ing 3.7bn of funding and the regen-
eration program will see 100,000
new homes built, the creation of two
new town centres and a revival of
the old town is expected to help pro-
duce a thriving night scene and an
array of independent shops.
For more information visit:
vermillionlondon.co.uk
or call Hamptons on 020 7758 8481.
K
NOWN FOR being the
residential location of choice
for many of the capitals most
prominent figures, Park Lane
is one of the most prestigious
residential roads in London (it isnt
the second most expensive street on
the London edition of Monopoly for
nothing). The road, which was once
little more than a narrow country
road with a wall separating it from
Hyde Park, now houses Aldford
House, a unique residential
development. And if its history that
youre after, Aldford House has it in
droves.
The building has been developed and
lavishly refurbished by Fenton Whelan
and a unique three-bedroom apart-
ment in the building has become avail-
able for 8m.
The property maintains the art deco
style of 1930s Mayfair but has been
meticulously transformed to reflect a
modern sense of luxury and comes
equipped with all of the modern giz-
mos and interior features you would
expect. Devices can be controlled by an
iPad, Italian marble-flooring feature
throughout and other additions
include a Bulthaup-designed kitchen,
Lutron lighting and Gaggeanu appli-
ances.
On entering the building you are
greeted by a 24-hour porterage and the
entrance to the property itself features
a large entrance hall before you meet
the reception room, which is ideal for
entertaining guests. There is also a vast
dining room.
It benefits from impressive views cre-
ated by its triple-aspect position, so
Hyde Park and Park Lane can be
viewed from the spacious and airy
reception room, and views along
Aldford Street to Mayfair Village and
Grosvenor Chapel can be seen from
the master bedroom.
Many of the capitals biggest attrac-
tions are within walking distance and
prospective residents will have access
to excellent transport links. Hyde Park
Corner, Green Park and Knightsbridge
tube stations are nearby and there are
a variety of bus routes and bike dock-
ing stations in the area too.
For more information, call 020 7493
6935 or go to property.wetherell.co.uk.
The penthouses in the new Vermillion development boast impressive views of London
While the property has undergone a major refurbishment, it maintains many of the traditional art deco features of 1930s Mayfair
ALDFORD HOUSE
8M
VERMILLION
CANNING TOWN
FROM 695,000
With Easy Start
*
we can help you
make that all-important move
heres how it works:
You own 100% of your home
and pay just 85% of the
price now
Well give you an interest
free loan for 5 years for the
remaining 15%
A 5% deposit is required
to secure your mortgage
A 2 bedroom apartment in Old Bexley
from 212,500 with Easy Start
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. *On selected homes only, subject to Easy Start terms and conditions and only available
to customers where a primary mortgage is required to secure the purchase. 212,500 represents 85%of the full purchase price of 249,995. Mortgage application will be subject to status. Linden Limited. Reg. No. 01108676. Reg. Of ce: Cowley Business Park, Cowley, Uxbridge, Middlesex UB8 2AL.
Prices correct at time of going to press. Computer generated image of Heritage Gate.
0844 488 1276
lindenhomes.co.uk/heritage
Sales Of ce open
Thursday to Monday
10am 5pm from,
7 Bourne Road,
Old Bexley DA5 1LQ
QR scan me now
OLD BEXLEY
Weir Road DA5 1LQ
2 bedroom apartments from 249,995
or 212,500 with Easy Start
*
0333 666 2535 www.londonsquare.co.uk
LEONARD
STREET
EC2
NOW 80% SOLD
Image depicts the two bedroom show apartment at London Square Leonard Street. Details and prices are correct at time of going to press. All distances according to walkit.com and t.gov.uk
WHERE CITY SOPHISTICATION
MEETS SHOREDITCH COOL
Our 45 luxury 1 and 2 bedroom apartments and three stunning penthouses
offer superbly designed, spacious interiors on the edge of The City, with
the hip hangouts of Hoxton and Shoreditch just a 5 minute walk away.
ONLY FI VE 2 BEDROOM APARTMENTS REMAI NI NG
PRI CES FROM 695, 000
Marketing Suite & Show Apartments open daily
28 Leonard Street, London EC2A 4BY (closest tube station is Old Street)
Prices from
51,875*
* represents a 25% share
Tel: 0208 308 4193
Email: homes@gallionsha.co.uk
Web: www.parksideviewhomes.co.uk

OVER
70%
RESERVED
1, 2 & 3 BED APARTMENTS
Available through Shared Ownership

on selected
apartments for all
reservations by
28
th
Feb 2013.**
**Ask for details.
Conditions may apply.
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FRIDAY 22 FEBRUARY 2013
31
cityam.com
PROPERTY SALES
January reaffirms our
hunch that 2013 will
be a good year for
sellers as stock levels
are 10 per cent down
compared to this time
last year and we
received 50 per cent
more offers from
what felt like more
motivated buyers.
The actual numbers
of buyers registering
is consistently high
and the fact that they
are looking in
multiple locations
shows that many are
willing to expand
their search at a time
when stock is
increasingly scarce.
Motivated buyers are expanding their property searcher in 2013 as stock levels remain low
DOUGLAS & GORDON AVERAGE LONDON SALES PRICE INDEX
Q1 2012 Q2 2012 Q3 2012 Q4 2012
1 bed flat 404,167 408,333 410,833 417,917
2 bed flat 608,333 620,833 634,167 644,167
3 bed house 1,340,000 1,367,917 1,369,167 1,409,167
4 bed house 2,006,250 2,025,000 2,110,833 2,199,167
Supply
500
400
300
200
100
0
Jan Jun Jul AugSepOctNovDec FebMar AprMay
2010 2011 2012 2013
July 2010
high(448)
Dec 2006
low(127)
Supply & Demand
Feb Jul Aug Sep Oct Nov Dec Jan Mar Apr May Jun
1600
1400
1200
1000
800
600
400
200
0
Demand 2012-2013 Supply 2012-2013
1200
1000
800
600
400
200
0
Demand
Jan Jun Jul AugSepOct NovDec FebMarAprMay
2010 2011 2012
Jan2012
high(1029)
Dec 2011
low(211)
2013
LONDON
BAROMETER
ED MEAD DIRECTOR OF DOUGLAS & GORDON
FRIDAY 22 FEBRUARY 2013
32
cityam.com
PROPERTY FOCUS ON
Computer generated image
A development by
paynesandborthwick.com
Call 020 7087 5000
Completion from
Summer 2013
Register your interest
Paynes & Borthwick is a new
riverside development with
stunning views, situated in the
Royal Borough of Greenwich
Presenting stunning panoramic views of Greenwich,
Canary Wharf and The City. Paynes & Borthwick
offers highly specied one, two and three bedroom
apartments and 38,000 sq ft of commercial and
retail space. With key transport links just minutes
away via DLR, London Underground, mainline rail
and river taxi, Paynes & Borthwick is within easy
reach of Canary Wharf, The City and Central London.
Stunning river views towards Canary Wharf,
Greenwich and the City Computer generated image Computer generated image
CALEDONIAN ROAD, N1
Price: 525,000
Despite being located in the heart of Kings Cross, this property is tucked away in a
quiet gated development. The flat comes with a large and bright reception room, an
open-plan kitchen and two large bedrooms with en suite shower rooms.
Contact Foxtons on 020 7704 5000 or foxtons.co.uk
ARGYLE SQUARE
Price: 3.5m
This Georgian corner house is ideal for someone after a property with develop-
ment potential. It has six bedrooms, a large gallery space, several dining rooms
and a reception room, which overlooks the square.
Contact Foxtons on 020 7704 5000 or foxtons.co.uk
PENTONVILLE ROAD
Price: 799,950
This top floor, three bedroom apartment in a popular new development
benefits from impressive views of London, a spacious reception room and
easy access to A1 road links out of London or the A501 into central London.
Contact Foxtons on 020 7704 5000 or foxtons.co.uk
T
HE AREA, which
borders Bloomsbury
and straddles
Islington and
Camden boroughs, is
having a bit of a
renaissance right now. In
2011, Knight Frank
ranked Kings Cross as
one of the top residential
development areas in
London and its easyto
see why.
The once run-down
area has been the subject
of considerable
redevelopment. Many of
the former railways have
been appropriated to
form the new Kings
Cross Central project,
which boasts 5m sq ft of
new office space and
2,000 new homes.
Residents buying into the
complex are benefiting
from being part of
Londons newest
postcode, NC1. Even
Google has decided to set
up nearby.
The prices are generally
cheaper than the City
and neighbouring
locations making now the
perfect time to invest
before the prices
increase. Close proximity
to offices, along with the
excellent Overground,
Underground and
Eurostar connections
means it has unrivalled
transport links.
Priya Pannu from
Knight Frank says: The
main reasons to buy in
Kings Cross are the
transport, the element of
waterside living and,
finally, the projected
capital growth due to the
on-going regeneration
and the transformation
of the area, which will
become a technology hub
due to Googles large
investment. The
development by Argent at
Kings Cross Central will
create a new 67 acre
district, housing, in part,
the 35,000 people
expected to eventually be
working in Kings Cross.
Many estate agents are
dubbing the area
recession-proof thanks
to the Kings Cross
Central development.
NEED TO KNOW | AREA INSIGHT
LOCAL AREA
|
PRICES
SOURCE: ZOOPLA/FOXTONS
Detached Semi-Detached Terraced Flats
Kings Cross 2.08m 1,48m 1,24m 447,414
FOCUS ON: KINGS CROSS
New Phase Now Launched
Marine Wharf, Surrey Quays, is ideally located only minutes from Canada Water and Canary Wharf and offers an outstanding choice of
apartments and penthouses. Forming part of a sustainable contemporary community, Marine Wharf will benefit from shops and leisure
facilities, including a Tesco Express, 24 hour concierge, residents gym, landscaped courtyards and a new park.
2 and 3 bedroom apartments available from 375,000
P
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.
Marine Wharf will have
over 1.5 acres for
people to enjoy.
Our Vision. Your Future.
In the last ten years,
the Berkeley Group has
created 436 acres of
public open space.
Proud to be a member of the
Berkeley Group of companies
www.marinewharf.co.uk
Call 020 8694 3100 for more information
Sales Information Centre open daily 10am to 6pm (Thursday until 8pm)
Plough Way, Surrey Quays, London SE16 7UD
The exciting new
vibrant destination for
Londons Dockside
FRIDAY 22 FEBRUARY 2013
34
cityam.com
PROPERTY FOCUS ON
Lender Fixed/Flexible Rate Until APR Maximum Loan
(per cent) (per cent) to Value (per cent)
ING Direct Flexible 1.94 2 Years 3.9 60
Nationwide Flexible 2.34 2 Years 3.8 60
First Direct Flexible 2.38 Term 2.5 65
HSBC Flexible 2.38 Term 2.5 60
Woolwich (Barclays) Flexible 2.39 March 2015 3.8 70
Chelsea BC Fixed 1.89 April 2015 5.2 60
Yorkshire BS Fixed 1.94 March 2015 4.6 60
HSBC Fixed 1.98 April 2015 3.8 60
Norwich & Peterborough BS Fixed 1.99 2 Years 4.6 60
REGENT QUARTER, N1
Price: 1.29m
This two-bedroom apartment in a new development at the heart of the
regeneration features floor to ceiling windows allowing for floods of light, oak
floors, under-floor heating and a fully fitted kitchen with modern appliances.
Contact Savills on 0207 409 8756 or savills.com
d e r n a m h o u s e
Dorma ns Pa rk, S urre y RH1 9 3 NU
A magnificent new 5,500 sq ft residence benefitting from a large plot and
located within a sought-after private estate on the outskirts of East Grinstead
London Victoria by rail in under 1 hour
Priced at 2,075,000
www.millwooddesignerhomes.co.uk
A joint venture with
EUSTON ROAD
Price: 1.4m
With a large reception room and large master bedroom, this flat is one of the
largest one bedroom apartments in the Grade II listed St Pancras Chambers. It
boasts highly sought after period features and panoramic views of London.
Contact Hamptons on 020 7717 5319 or hamptons.co.uk
GLIFFORD STREET, N1
Price: 350,000
Offering superb access to Kings Cross International is this one double bedroom
flat set on the ground floor of a highly sought after development. It comes with
a decked terrace and residents benefit from access to a communal gym.
Contact Chesterton Humberts on 020 7359 9777 or chestertonhumberts.com
RUFFORD STREET, N1
Price: 475,000
Situated in a quiet and secure mews, this two bedroom ground floor flat
features a large reception room with a balcony, an en-suite master bed-
room and sizeable second bedroom. Islingtons popular Upper Street is
within each reach. Contact Foxtons on 020 7704 5000 or foxtons.co.uk
CURRENT MORTGAGE DEALS Source: MoneySupermarket.com
LIVING IN WAPPING HAS JUST
REACHED NEW HEIGHTS
SUITES FROM 305,000
2 BEDS FROM 490,000
3 BEDS FROM 999,000
Call the marketing suite or visit
our website for more information
0800 954 5358
21wappinglane.com
Beautiful suites, 2 and
3 bedroom apartments
with spectacular terraces
overlooking Canary Wharf
and Central London skyline.
Premium residents
facilities including 24-hour
concierge, underground
parking, screening
room, Fitness club and
health spa with state-
of-the-art equipment.
First major development
in Wapping for ten years.
Set in an historic
waterfront village,
minutes from Tower
Bridge and St
Katharine Docks.
Superbly located just 2
miles between Canary
Wharf and the City.
5 minutes walk to
Wapping overground
station and the DLR.
Completions from
early 2014.
GREENWICHCREEKSIDE
Three great reasons to buy your new
3 bedroom apartment in Greenwich
Apartments with fantastic rental opportunities or the ideal place to make your home
3 bedroom apartments with a high internal specification
Great services and facilities including a 24 hour concierge service, gymnasium and crche
All apartments have parking included
Close to the heart of maritime Greenwich with breath-taking City, Thames
or Canary Wharf views
Cutty Sark DLR & Greenwich mainline station under 10 minutes walk;
rapid access to Canary Wharf or London Bridge
Homes ready for move-in now
Prices from 439,995

RESERVE BY END OF FEBRUARY - GET AN ADDITIONAL PARKING SPACE FREE*


RECEIVE A YEARS COMPLIMENTARY MEMBERSHIP TO THE ONSITE MERIDIAN FITNESS GYMNASIUM*
RENTAL YIELDS IN EXCESS OF 6%*
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Selling Agents:
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LIFE&STYLE
FRIDAY 22 FEBRUARY 2013
38
cityam.com
GOING OUT
WHEN A Chorus Line opened for the
first time off-Broadway in 1975, it
went on to run for a record-breaking
fifteen years before closing in 1990.
Despite its success, A Chorus Line is
not one of the classics. Its songs have
not wheedled their way into the
collective consciousness in a way
comparable to say, Guys and Dolls or
West Side Story. To those not au fait
with this kind of thing, none of the
tunes will be familiar. What makes A
Chorus Line special is its format. Not a
linear narrative as such, but a series
of individual auditions with each
character taking centre stage to tell
their life story and perform an
accompanying song.
Despite some faltering American
accents, the cast is universally
impressive, with strong voices all
round. In the end though, American
Leigh Zimmerman of Home Alone 2
fame, no less upstages everyone
with her rendering of a thirty-
something dancer nearing her best
before date. Sassy and wisecracking,
Zimmerman gets all the best lines and
the production misses her whenever
she was off stage.
Having got to know the characters
one by one, its a pleasure to see them
all performing in unison at the end.
It's a shame the song that they're
performing isn't more memorable.
ART
LICHTENSTEIN: A RETROSPECTIVE
By Alex Dymoke | Tate Modern
hhhhi
ART
ANDY WARHOL PHOTOGRAPHY
By Alex Dymoke | Privatus, Mayfair
hhhhi
THEATRE
A CHORUS LINE
By Alex Dymoke | London Palladium
hhhii
FILM
CLOUD ATLAS
Cert 15 | By Annabel Palmer
hhiii
Its a pop hit: Lichtenstein at the Tate and
a collection of rare Warhol photographs
I
S HE the worst artist in the US?
asked Life magazine about Roy
Lichtenstein in 1964. The primary
colours and thick, innocent lines
are too much or too little for many.
However, his paintings are some of the
most familiar images of the twentieth
century, and matters of taste aside, no
one doubts Lichtensteins importance.
He rejected the energy and freedom of
abstract expressionism, instead opting
to mimic the processes and paint the
objects of industry.
The new retrospective at the Tate
places him immediately in that con-
text. The excellent first room shows
paintings of paint marks, fat and slug-
gish, oozing across the canvas. He spent
years as a failing abstract expressionist
painter trying, without success, to cap-
ture the vitality of the likes of Jackson
Pollock and Willem De Kooning. Here
he takes a sly dig at them, questioning
the expressiveness of their expression-
ism, imprisoning their paint-splatter in
ironic quotation marks.
Apart from the send-up of abstract
expressionism in the first room, the
most satirical works are in the room
entitled War and Romance. Painted in
the early to mid 60s (during the
THE TATES Lichtenstein
retrospective shows the pop art in
its popular, garish glory. This small
exhibition of Andy Warhol
polaroids shows the 60s up-close
and personal. Gain a unique view
into Warhols inner circle, with
travel photography, still-lifes and
intimate photo-booth shots. Many
of the photographs have not been
seen by the public since leaving
Warhols studio. They provide a
unique view of the artists life and
inner circle. Fashion stars such as
Diane von Furstenberg, Calvin
Klein and Carolina Herrera all
appear before Warhols camera
with their guard down.
But its not just fashionistas and
socialites on show: you can also see
a softer side to the likes of Arnold
Schwarzenegger and OJ Simpson as
they fool around a pull faces in the
camera. The pictures offer an
insight into to people behind
carefully managed (or not so
carefully managed in the case of
Simpson) public personas.
Vietnam war), this series contains his
best known works. Melodramatic
close-ups of women on phones mock
clichd gender roles, while the mess
and violence of war is rendered in
clean straight lines and primary
colours. I was curious to see the likes
of Whaam! and Oh, Jeff...I Love You
Too...But... up close. Could such famil-
iar images retain their impact? Had
their power been sapped by endless
duplication? I was pleased to find
that it hadnt. Its partly down to the
size. The War and Romance paintings
tower over the other works in the
exhibition, their oversized comic
book scenes overwhelming the room
with toy violence and love.
There is comprehensive treatment
of his lesser known work. Especially
interesting are his pastiches of iconic
historical works. Picassos Women of
Algiers, Leutzes Washington
Crossing the Delaware and Monets
Rouen Cathedral are all repainted in
the Lichtenstein style. Is there a hint
of parody in the replication? The
answer, apparently, is no: all the
things I have apparently parodied I
actually admire.
Everyone knows a Lichtenstein
when they see one. But despite hav-
ing one of the most distinctive styles
of any artist, he tends to be remem-
bered for a few famous paintings.
From his black and white paintings
of industrial objects to his forays
into sculpture to his Chinese-style
landscapes, this exhibition shows
that there was more to Lichtenstein
than smoke plumes and ono-
matopoeia.
CLOUD ATLAS is an ambitious piece
of filmmaking, and one that fails
with tremendous flair. It is based on
David Mitchells widely-acclaimed
novel, which follows multiple plot
lines across six different eras that
span 500 years. But, at 172 minutes
long, it really feels like half a
millennia: it makes Peter Jackson
look like a master of brevity.
It incorporates action, romance,
drama, sci-fi and comedy. The
trouble is, some segments and
character arcs are far less
engaging than others.
You cant fault co-
directors Lana and Andy
Wachowskis and Tom
Tykwers boldness, and
in less able hands, it
could have been an
unmitigated disaster. In
bringing the film to the big
screen, they made two
controversial
decisions (three,
if you include
actually filming
the movie).
The first was
TERENCE MALICKS latest follows
his last outing, Tree of Life, in
both style and ambition. Like that
film, there is much to enjoy if you
can suspend your cynicism and
luxuriate in the romance and
unfashionably unironic lyricism.
If you think that Malick and
Ben Affleck are a strange
combination you would be right.
Afflecks all-American, college-kid
good looks jar with all the sunset
beaches and frolicking in wheat
fields.
The rest of the performances
are strong though. Javier Bardem
is especially impressive as a
brooding priest in spiritual crisis.
Swirling camerawork,
beautiful landscapes and a
stunning central turn from Olga
Kurylenko make for a sensuous
experience.
AFTER PRODUCING the deliciously
terrifying The Orphanage and
directing the superb horror fantasy
Pans Labyrinth, you would bet your
house on Guillermo del Toro nailing
what is essentially a stripped down,
monster-in-the-house horror movie.
This is why Im not a gambling
man. It starts off convincingly
enough. The plot two young girls
are left to raise themselves in the
woods after a car accident is
knowingly contrived, with enough
clever nods to horror classics to
satisfy genre fans. After being
rescued, the girls are moved into a
house with their uncle and his
girlfriend. But, surprise, surprise, it
becomes apparent they may not have
been entirely alone in the woods. The
six- and eight-year old sisters are
brilliant: after The Orphanage, del
Toro knows exactly how you make
children scary: have them say almost
nothing and never show them
blinking. Children are naturally
creepy, until the start speaking. Then
they are just idiots.
But as the film drags on, del Toro
forgets the most important rule:
dont show the monster. The
occasional flash of shadow quickly
becomes lingering shots of his
fantasy- inspired creation, which
eventually loses all of its bite.
Del Toro will probably never
make a dull film but he will
certainly make a better one than
this.
to restructure the books orderly
approach, so the film frantically
darts from one world to another,
revisiting each narrative for what
they hoped would be long enough
to get the viewer hooked. This
works for the most part, helping
keep the tempo high.
Their second big decision, to
have the cast play different
characters in most threads
(Hanks, for example, has roles
of varying importance in all
six segments) was less
effective (although it does
provide some light enjoyment:
some of the most fun is to
be had trying to guess
which actor is
beneath the
FILM
TO THE WONDER
Cert 12a | By Alex Dymoke
hhhhi
FILM
MAMA
Cert 15 | By Steve Dinneen
hhhii
Elizabeth Taylor, pictured by Andy Warhol
Ben Wishaw stars
in Cloud Atlas
extensive range of prosthetics, bald
caps, wigs, side burns, make up,
tattoos, body paint and fake teeth.
Where the real problem lies,
though, is that Cloud Atlas is
neither half as important, nor half
as touching, as it would like to be.
This is less the fault of the editors
or cinematographers who do a
superb job and far more to do
with the nauseating script and
wooden acting. You may want to
sit back and enjoy the spectacle
(its a classic case of style over
substance) but the constant
onslaught of pseudo-sage remarks,
delivered in highly-suspect
accents, make this virtually
impossible.
The decision to stay faithful to the
book and have the final segment in
pidgin English means you cant
understand most of what Hanks
and Berry were actually saying
and when you can, its hard not to
snigger at a wide-eyed Hanks asking
to be told the true-true. Indeed,
the greatest acting on show is the
ability of the cast to consistently
keep a straight face.
39
TV & GAMES
cityam.com
T
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BBC1
SKY SPORTS 1
5pmLive Super Rugby 7.30pm
Live World Club Challenge 10pm
The Fantasy Football Club 11pm
Premier League Preview11.30pm
The F1 Show12.30am-6amLive
International One-Day Cricket
SKY SPORTS 2
7pmPremier League Preview
7.30pmLive Football League
10pmWWE: Late Night
Smackdown 12amWWE: Late
Night Bottom Line 1amFootball
League 2amThe Fantasy Football
Club 3amSports Unlimited 4am
Premier League Preview4.30am
Watersports World 5.30am-6am
Masters of Euro Football
SKY SPORTS 3
7pmLive World Golf
Championship 11pmElite League
Ice Hockey 12amTight Lines 1am
World Club Challenge 3amTest
Cricket 3.55am-6amLive Test
Cricket
BRITISH EUROSPORT
7pmTimbersports Series 8pm
Live Boxing 10.30pmSnooker:
The Welsh Open
11.45pm-12.45amSki Jumping
4amLive World Superbikes
5.10am-6.10amBritish
Superbikes
ESPN
7pmESPN Kicks: Extra 7.15pm
Live Premiership Rugby Union
10pmBundesliga 11.45pmESPN
FC Press Pass 12.15amUFC
Primetime: Rousey v Carmouche
12.45amFrench Football 2.30am
NASCAR Now3amUFC: The
Ultimate Fighter 4amUFC 156
Countdown Show5amNHRA
Drag Racing 5.30am-6amISOC
Snocross
SKY LIVING
7pmThe Love Machine 8pmThe
Love Machine: Love Bites 9pm
Criminal Minds 10pmJerry
Bruckheimers Chase 11pmThe
Love Machine 12amThe Love
Machine: Love Bites 1amBones
1.50amSupernatural 2.40am
Medium3.30amBones
4.20am-6amCriminal Minds
BBC THREE
7pmGreat Movie Mistakes 2: The
Sequel 7.15pmDoctor Who 8pm
Dont Tell the Bride 9pmWorlds
Craziest Fools 9.30pmRussell
Howards Good News 10pmCome
Fly with Me 10.30pmEastEnders
11pmSun, Sex and Suspicious
Parents 12amFamily Guy
12.45amBeing Human 1.45am
Pramface 2.15amWay to Go
2.45amSun, Sex and Suspicious
Parents 3.45am-4amGreat
Movie Mistakes 2: The Sequel
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8.30pm2
Broke Girls 9pmFILMJoy Ride
2001. 11pmRevenge 12amThe
Big Bang Theory 1amHappy
Endings 1.30amThe Ricky
Gervais Show2amThe Cleveland
Show2.30amFranklin & Bash
3.10amBalls of Steel Australia
4amPrivileged 4.40am-6am
Made in Chelsea
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmCounting Cars 9pm
Ancient Aliens 10pmStorage
Wars: Texas 11pmStorage Wars
11.30pmPawn Stars 12am
Ancient Aliens 1amStorage
Wars: Texas 2amAmerican
Pickers 3amIce Road Truckers
4amAmerican Restoration 5am
Pawn Stars 5.30am-6am
Storage Wars
DISCOVERY
7pmFifth Gear 8pmAuction
Kings 9pmAuction Hunters
10pmWheeler Dealers 11pm
Auction Hunters 11.30pm
Auction Kings 12amAuction
Hunters 1amAmerican Chopper:
Senior Versus Junior 2amSons of
Guns 3amAuction Hunters
3.50amAmerican Chopper:
Senior Versus Junior
5.30am-6amMeerkat Manor
DISCOVERY HOME &
HEALTH
7pmBaby Whisperer 8pmLittle
People, Big World 9pm19 Kids
and Counting 10pmSecretly
Pregnant 11pmChicago Medical
12am19 Kids and Counting 1am
Secretly Pregnant 2amChicago
Medical 3amLittle People, Big
World 4amBaby ER 5am-6am
Bringing Home Baby
SKY1
8.30pmJohn Bishops Only
Joking 9pmStella 10pmAn Idiot
Abroad 11pmSpartacus: War of
the Damned 12.15amArmed and
Dangerous: Ultimate Forces
1.15amRoad Wars 3.05amTerra
Nova 4am-6amStargate SG-1
BBC2 ITV CHANNEL4 CHANNEL5
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6pmBBC News
6.30pmBBC London News
7pmThe One Show:
7.30pmA Question of Sport:
BBC News
8pmEastEnders:
8.30pmCHOICE Room 101:
9pmNew Tricks:
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmThe Graham Norton
Show:
11.25pmFILMPretty Woman:
1990.
1.20amWeatherview1.25am-6am
BBC News
6pmEggheads:
6.30pmFlog It! Trade Secrets:
7.30pmGreat British Menu:
8pmMastermind: Five
contenders compete in the first
semi-final.
8.30pmSea City:
9pmWild Arabia:
10pmQI:
10.30pmNewsnight:
11pmThe Review Show Oscars
Special: Weather
11.50pmFILMSouthern
Comfort: Action thriller,
starring Powers Boothe. 1981.
1.30amSign Zone: Question Time
2.30am-6amClose
6pmITV News London
6.30pmITV News
7pmEmmerdale:
7.30pmCoronation Street:
8pmWild Britain with Ray
Mears:
8.30pmCoronation Street:
9pmCHOICE Piers Morgans
Life Stories: Esther Rantzen:
10pmITV News at Ten
10.30pmITV News London
10.35pmFILMThree Kings:
Gulf War adventure, starring
George Clooney. 1999.
12.40amJackpot247
3amFILMCoogans Bluff: 1968.
4.35am-6amITV Nightscreen
6pmThe Simpsons: 6.30pm
Hollyoaks: 7pmChannel 4 News
7.55pm4thought.tv:
8pmCome Dine with Me:
9pm8 Out of 10 Cats:
9.30pmThe Last Leg:
10.20pmPaddys TV Guide:
11.10pmFILMHot Shots! 1991.
12.45amRandom Acts 12.50am 2
Broke Girls 1.15amDont Trust the
B**** in Apartment 23 1.35am
Bobs Burgers: Tina befriends a
mean girl at school. 2amHappy
Endings 2.20amSouthland 3am
Portrait of a Young Man Drowning
3.10amSt Elsewhere 4amDeal or
No Deal 4.55amCountdown
5.40am-6.05amBaking Mad with
Eric Lanlard
6pmHome and Away:
6.30pm5 News at 6.30
7pmWinter Road Rescue: 5
News Update
8pmIce Road Truckers: 5
News at 9
9pmCHOICE The Mentalist:
10pmCSI: Crime Scene
Investigation:
10.55pmCSI: Crime Scene
Investigation:
11.55pmInside Hollywood:
12amSuperCasino 3.55am
Motorsport Mundial 4.20amHouse
Doctor 4.45amMichaelas Wild
Challenge 5.10amWildlife SOS
5.35am-6amWildlife SOS
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6
7
8
9 10 11 12
13 14 15 16
17
18
19
20
22 28
10 11
9 4 10
34 12
40
3 17
41
16 22
16 16 13
12 19
30 23
34
27
15
32
10
26
9
31
9
6
24
11
41
10
14
12
17
16
29
35
ACROSS
3 Love story (7)
6 Small uid-lled
sac located in
the joints (5)
7 Schematic
or technical
drawing (7)
8 Hindu religious
teacher (5)
9 Pastoral (7)
13 Wedging,
implanting (7)
17 Should (5)
18 Fairground ride (7)
19 Complain
peevishly (5)
20 Apply (paint) in
small touches (7)
DOWN
1 Atrocious (7)
2 Greatly feared (7)
3 Spokes (5)
4 Small, brightly
coloured tropical
sh (5)
5 American raccoon (5)
10 Cacophony (3)
11 Lackadaisical (7)
12 Workers dining
hall (7)
14 Abstract form
of painting that
produces dramatic
visual efects (2,3)
15 Rise to ones
feet (3,2)
16 Overeat (5)
C
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C A S E S P E D A L
L L H E R R E
U V U L A O U I J A
M G V X N D
P O S S E Y I K E S
R A
A B O R T A N N U L
M P I N I O
B A T E D G E C K O
L I A S S H S
E X C E L T H E M E
2 8 7 1 9 6 8 4
7 9 8 5 6 2 4 1
9 2 1 8 9 7
1 4 5 3 2 1 5 2
6 9 8 7 9 3 6
2 5 1 4 8 2 7 9
7 4 9 8 6 1 2
3 6 2 2 4 6 3 1
1 2 8 1 3 7
2 3 1 4 5 8 1 2
5 8 6 9 7 9 3 8
4
4
4
4
4
4
4
4
4
The nine-letter word was
OBJURGATE
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
FRIDAY 22 FEBRUARY 2013
ROOM101
BBC1, 8.30PM
Craig Revel Horwood, Sheila Hancock
and Jon Richardson debate their pet
hates, which include womens toilets,
scented candles and dancing.
PIERS MORGANS LIFE STORIES:
ESTHER RANTZEN ITV, 9PM
The broadcaster joins Piers to talk
about her career, including her 21
years as the presenter of BBC
consumer magazine Thats Life!.
THE MENTALIST
CHANNEL5, 9PM
Lisbon and Jane investigate the
murder of a botanist who was working
on a new strain of marijuana. Simon
Baker stars.
TVPICK
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Evs Notts County 12/5 Draw Bury 11/4
Kick off 7:45pm, Live on Sky Sports
9/1 0 - 0 9/1
6/1 1 - 0 10/1
11/2 1 - 1 11/2
17/2 2 - 0 22/1
8/1 2 - 1 14/1
16/1 2 - 2 16/1
18/1 3 - 0 60/1
18/1 3 - 1 40/1
Notts County Bury Notts County Bury
CORRECT SCORE
7/1 N. Ajose (B)
7/1 A. Bishop (B)
7/1 D. Healy (B)
8/1 S. Schumacher (B)
11/2 Y. Arquin (N)
11/2 J. Cofie (N)
11/2 E. Showunmi (N)
11/2 F. Zoko (N)
FI RST GOALSCORER
All above prices subject to fluctuation.
7/4 Leeds 16/1 Draw Melbourne 1/2
8:00pm, Live on Sky Sports 1
Evs Melbourne / Melbourne
11/4 Leeds / Leeds
11/2 Leeds / Melbourne
9/1 Melbourne / Leeds
16/1 Draw / Melbourne
20/1 Draw / Leeds
33/1 Leeds / Draw
33/1 Melbourne / Draw
66/1 Draw / Draw
HALF-TI ME / FULL-TI ME
7/1 B. Slater (M)
8/1 R. Hall (L)
9/1 M. Fonua (M)
9/1 S. Waqa (M)
11/1 W. Chambers (M)
11/1 D. McGuire (L)
11/1 J. Moon (L)
11/1 J. ONeill (M)
FI RST TRYSCORER
BY THE time Manchester City
kick off on Sunday they could
be 15 points behind
Manchester United in the
Premier League title race.
While United seemingly have a
straightforward game visiting
bottom-of-the-table Queens
Park Rangers on Saturday, City
face the more daunting task of
hosting Chelsea.
Failure to beat the Blues will
surely spell the end of any slim
hopes Roberto Mancinis side
have of retaining the Premier
League title.
City have failed to win any of
their last three league games
and the 3-1 reverse at
Southampton was their worst
performance in three years,
according to Mancini. His
players did respond to that
criticism with a comprehensive
4-0 win over Leeds in the FA
Cup fifth round last Sunday,
though, and the home win
looks a big price at evens with
Blue Square Bet.
Chelsea ran out comfortable
winners in their FA Cup fourth
round replay with Brentford,
but a 4-0 scoreline probably
flattered the west London
club, as it was still goalless at
half-time and the Bees left
themselves vulnerable chasing
the game when they went a
goal down.
Rafael Benitezs men
continue to blow hot and cold
and have lost on their last
three visits to the Etihad.
There is no doubt City will
have enjoyed a far more
relaxed build up to this big
game than their opponents
who were in action only last
night in the Europa League.
Forwards Sergio Aguero and
Carlos Tevez looked in great
form against Leeds in stark
contrast to Chelseas strikers
at the moment and their
superior options up front
should see the hosts take all
three points.
The sacking of Nigel Adkins
as Southampton boss last
month was greeted with
disbelief but his successor,
Mauricio Pochettino, has made
a solid start. The Argentine has
lost only one of four games in
charge a narrow 2-1 defeat at
Old Trafford and the triumph
over City last time out suggests
they have enough to get a draw
at Newcastle on Sunday.
The French invasion at St
James Park paid immediate
dividends in that brilliant 3-2
win over Chelsea at the start of
the month, but the Magpies
werent quite as good in the
E
NGLAND are the only side
remaining in this years
RBS Six Nations with a
chance of landing the
Grand Slam and they can take
a significant step towards that
achievement by beating France
at Twickenham tomorrow
afternoon.
After the tournaments
opening two rounds England
boast a 100 per cent record and
France are in pole position to
be left holding the wooden
spoon for the first time since
1957. This titanic clash has
come to be known as Le
Crunch and thats exactly what
it will be, even though the
table suggests otherwise.
With the competition all but
over for the French they would
like nothing more than to ruin
Englands Grand Slam dreams.
It makes them a dangerous
proposition that cannot be
underestimated.
Stuart Lancasters side
proved in Dublin they can
grind out results and, when
given the opportunity, utilise
the backs for a more expansive
game like they demonstrated
in the 38-18 win over Scotland.
Brave decisions have been at
the forefront of Englands
campaign and Lancaster has
made another in bringing back
centre Manu Tuilagi for the
faultless Billy Twelvetrees. A
fascinating midfield encounter
between Tuilagi and Mathieu
Bastereaud adds another
intriguing element to this
contest.
France centre Wesley Fofana
is one of the best around and
he is set to move from the wing
to his favoured position to give
England another headache.
The Red Rose edged a tense
match in Paris last year to
make it two consecutive
tournament wins over France.
On their last visit to
Twickenham they failed to
score a try in a 17-9 defeat. That
loss made it three Six Nations
games on the spin that Les
Bleus have lost at HQ. England
know the importance of
maintaining that record on
Saturday as they have never
captured the Six Nations when
losing at home to France.
Including World Cups,
England have won five of the
last seven meetings against
France, although its two
apiece from the previous four
internationals. Those last four
were all tight games with the
average winning margin at just
4.8 points. The French backlash
against the Welsh failed to
materialise, but with personnel
changes the scene is set for
tomorrow.
Both nations have had an
extended break and that will
be a particular boost for France
having been involved in a
gruelling Top 14 calendar,
where the players are not
afforded games off like
Englands before the
tournament begins.
I believe England will win,
but Im siding with France
with the +7 handicap at 10/11
with Coral as they will be fired
up and desperate to save any
face they have remaining after
a disastrous tournament so far.
Backing England to win by 1-5
points at 9/2 with Blue Square
Bet is also recommended.
City have the firepower to claim
another home win against Chelsea
England should expect a bruising clash against the wounded French
FRIDAY 22 FEBRUARY 2013
40
THEPUNTER
SPORT TRADER
WILLIAM CHRIMES AND BEN CLEMINSON PREVIEW THE BEST OF THE WEEKEND'S ACTION
nPointers
Manchester City at evens with Blue Square Bet
Draw (Newcastle v Southampton) at 5/2 with
Coral
WWW.STARSPORTSBET.CO.UK 08000 521 321
The Jewson Novices Chase, run on day
three of the Cheltenham Festival, looks
a wide-open affair and the betting is
currently headed by Nicky Hendersons
Captain Conan and Willie Mullins
Aupcharlie.
Both are hugely respected and,
more importantly, are being aimed at
the two mile and five furlong chase.
Others with prominent positions in
plenty of bookmakers lists have
alternative preferred targets and are
unlikely to line-up Dynaste and
Boston Bob (RSA Chase), Fago and
Arvika Ligeonniere (Arkle) are just four
high-profile examples.
That means that there are plenty of
others quoted with huge potential to
shorten dramatically in the betting and
none more so than the Tom George-
trained Module.
The French-bred six-year-old
landed a huge touch on his British
debut when winning over hurdles at
Cheltenham a year ago and has won
two of the three novice chases hes
competed in since.
His only defeat came when tipping
up on his chasing bow at Exeter last
October when travelling ominously
well. Wins at Newbury and Leicester
since have shown hes right out of the
top drawer and his trainer has gone on
record saying hell need three miles
soon, as he shapes like a real stayer.
He can currently be backed at 12/1
and will surely trade at half that price
on the big day.
BY BILL ESDAILE
England can win
again but expect
a tight encounter
against Les Bleus
nPointers
France with +7 handicap at 10/11 with Coral
England to win by 1-5 points at 9/2 with Blue
Square Bet
2-1 defeat at Tottenham. A long
trip to the Ukraine to play
Metalist Kharkiv last night is
hardly ideal preparation and a
team that has lost six of 13
league games at home this
term can be opposed. The draw
is 5/2 with Coral and that is
worth a punt.
nPointers
MODULE 12/1 e/w Jewson Novices Chase
(Cheltenham Festival)
T
OMORROWS card at
Kempton is the final
significant trial meeting for
next months Cheltenham
Festival and the highlight is
undoubtedly the Racing Plus
Chase at 3.50pm.
Nacarat bids for a historic third
win in the race and he shouldnt
be discounted with the ground
drying out and Tom Georges yard
in flying form. He is only 1lb
higher in his impressive victory 12
months ago, yet is now 12-years-
old and you just have to wonder if
something with younger legs will
have too much speed for him.
That may well be Paul Nicholls
Rolling Aces who is on a hat-trick
after two decent wins at Newbury
and Wincanton. However, the
yard have saddled five of the last
six beaten favourites and this
seven-year-old has only had three
runs over fences. He also prefers a
stiffer track than Kempton.
A couple of weeks ago I advised
you to snap up the 6/1 available
about WYCK HILL and JP
McManus new purchase is now
no bigger than 11/4 with Blue
Square Bet. His credentials are
obvious. He won well at Wetherby
on his seasonal reappearance
before going on to give Katenko a
four-length beating at Ascot in
December.
That rival has since gone up
22lb following two facile victories
and although he has undoubtedly
improved, whos to say that Wyck
Hill hasnt? Jump racings leading
owner clearly didnt have to be
convinced and a good win
tomorrow would leave Wyck Hill
looking attractively handicapped
for Aprils Grand National.
As were on at 6/1 there is little
point in going in again at 11/4, so
lets just hope AP McCoy can get
David Bridgwaters nine-year-old
out in a prominent position and
set up a third win in the race for
the champion jockey. With the
ground drying out Im tempted to
fire another bullet and Im
interested in DUKE OF LUCCA
each-way at 12/1 with Coral.
Philip Hobbs has an enviable
record in this race, winning it
four times, including two years
ago with Quinz who lines up
again tomorrow.
Some may feel that Duke Of
Luccas chance has been
compromised by Richard Johnson
deserting him for his stablemate,
but that may have something to
do with politics rather than the
chances of the duo.
Duke Of Lucca ran a cracker on
his reappearance at Ascot in
November, finishing second to
another of tomorrows rivals,
Roberto Goldback. He then
disappointed in the Hennessy
Gold Cup, but that contest was
never likely to suit and Hobbs has
always said he needs better
ground. I dont think hes got
quite as much scope as Wyck Hill,
despite being a younger horse, but
I could see him going close and
12/1 is a more than fair price.
Ill leave the Racing UK Adonis
Hurdle (2.05pm) alone as it looks
very trappy. Word from Seven
Barrows is that Courtesy Call
could be pretty decent, especially
on good ground, so he may be the
one. Im happy to sit this one out,
though.
Alan King doesnt have quite
the same firepower that he used
to, but he has an excellent record
in the William Hill Dovecote
Novices Hurdle (3.15pm), winning
it three times in the last seven
years, including with Grumeti 12
months ago.
FAIR TRADE was impressive in
a jumpers bumper at this track
last month and this has always
been the target. He finally gets
the good ground he needs
tomorrow and can go close at
what should be a reasonable
price.
Conditions are set to be very
different up at Newcastle where
the big race is the marathon 4m1f
Betfred Eider Chase (2.55pm). The
one I am most keen on is the
11-year-old CAPTAIN AMERICO
who finished third in this race
last year and has stamina in
abundance.
He was only beaten by a length
on his seasonal debut in the
Borders National at Kelso and you
can be sure he will be staying on
when the others have cried
enough. He has the attributes to
cope with this brutal test and
looks a solid each-way bet at 10/1
with Star Sports.
Its the final of the hugely
successful Blue Square Bet Sprint
Series tomorrow (1.55pm) at
Lingfield Park Racecourse and it
promises to be a fast and furious
affair.
The market leaders Temple
Road and Black Cadillac won their
respective qualifiers last weekend,
but the former has gone up 7lb
and breaks from 10, while the
latter is drawn widest of all in 12.
Instead it might be worth
chancing SPEAK THE TRUTH
each-way at 7/1 with Blue Square
Bet. Roger Ingrams charge has
contested four previous qualifiers
and finally got his head in front
last time.
You can follow me on Twitter
@BillEsdaile.
41
RACING TRADER
BILL ESDAILE PREVIEWS THE BEST OF THE WEEKENDS RACING
cityam.com
FRIDAY 22 FEBRUARY 2013
nPointers
SPEAK THE TRUTH e/w 1.55pm Lingfield
(tomorrow)
CAPTAIN AMERICO e/w 2.55pm Newcastle
(tomorrow)
FAIR TRADE 3.15pm Kempton
(tomorrow)
WYCK HILL (already advised) 3.50pm Kempton
(tomorrow)
DUKE OF LUCCA e/w 3.50pm Kempton
(tomorrow)
BET
bluesq.com
web | mobile | tablet
*Sign up offer: New customers only. Well match your rst bet of at least 5 up to 25 in the form of a
free bet token. Free bet stake not returned in winnings and expires after 30 days. Qualifying bet must be
placed on a win, single or multiple bets at odds of evens or greater. Void bets do not qualify for free bet
tokens. Over 18s only. Blue Square Bet encourages responsible gambling. gambleaware.co.uk
U
P
T
O

2
5
F
R
E
E
B
E
T
*
S
IG
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U
P
T
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D
A
Y A
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U
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PROUD SPONSORS OF
THE BLUE SQUARE
BET SPRINT SERIES
AT LINGFIELD PARK
ENOUGH
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J
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B
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ANDREW Baldings BLACK CADILLAC
was one of the most impressive
winners during the heats and the five-year-
old can follow up last weeks win by taking
the main prize.
Both previous winners of the Blue Square
Bet Sprint Series had won a heat and
although a few horses take part after
consistent placed efforts, we need to focus
on those that have got their head in front in
recent weeks.
The 2.30pm Bluesquare.com Cleves
Stakes is a terrific Listed contest that can go
the way of Kevin Ryans YORK GLORY. A
winner over course and distance back in
November, this five-year-old has been in
good form.
Philip Makin is on board and he is a jockey
who rides the tight Lingfield track extremely
well with a leading strike-rate of 25%.
The Blue Square Bet Winter Derby Trial at
3.05pm is another Listed contest on a
fantastic all-weather card. This race has gone
the way of the favourite in the last four years
and PLANTEUR from Marco Bottis stable
might be a worthy market-leader. The long
break shouldnt be a problem as this talented
six-year-old has won on his seasonal
reappearance three out of four times.
Blue Square Bet will refund losing bets
(up to 20 as a free bet token) if your horse
is second by less than a length in the Sprint
Series Grand Final and also the feature races
at 2.30pm and 3.05pm.
WITH ALAN ALGER
FROM BLUE SQUARE BET
Wyck Hill (right) will race in JP McManus famous silks tomorrow and should be hard to beat
No reason to desert
Wyck Hill but Duke Of
Lucca is each-way value
IN BRIEF
More golden glory for GB cyclists
nCYCLING: Olympic champions Laura
Trott and Dani King won World Track
Cycling gold in the team pursuit with
Elinor Barker yesterday. Becky James
won a 500m time trial bronze and
Northern Irishman Michael Irvine won
gold and silver his nations first
championships medals since 1897.
Ponting set to play for Surrey
nCRICKET: Former Australia captain
Ricky Ponting will spend two months
with County Championship side Surrey
this summer. The 38-year-old will act
as cover for Graeme Smith while the
South African batsman is at the ICC
Champions Trophy in June and July.
Drogba transfer under scrutiny
nFOOTBALL: German giants Schalke
have asked European chiefs to look
into the legitimacy of former Chelsea
striker Didier Drogbas recent transfer
from Chinese club Shanghai Shenhua
to Turkish team Galatasaray.
Portsmouth set court deadline
nFOOTBALL: Portsmouths court
hearing to determine the valuation of
their Fratton Park home, the purchase
of which a potential takeover of the
club from the Pompey Supporters
Trust relies upon, will be held before
19 April.
CRISIS-HIT South African
police chiefs insist the case
against Paralympic star Oscar
Pistorius has not been weak-
ened despite the lead detective
being thrown off after it
emerged he himself faces
seven charges of attempted
murder.
On another day of extraordi-
nary twists in the bail hearing
of Pistorius, who denies delib-
erately killing girlfriend Reeva
Steenkamp, National Police
Commissioner Mangwashi
Phiyega denied the removal of
detective Hilton Botha had
caused embarrassment.
The charges against Botha
were only reinstated on
Wednesday, having previously
been dropped, and relate to a
2011 incident in which he and
other officers fired at a
minibus taxi carrying seven
passengers. Botha denies he
was drunk at the time. Botha,
whose faltering appearance in
court on Wednesday was wide-
ly perceived to have harmed
the prosecutions argument
that Pistorius should not be
granted bail, has been replaced
by the countrys top detective.
There is nothing embarrass-
ing for the police. I know
Botha. He is an excellent offi-
cer, said Phiyega, who added
that she could not explain
whether the timing of the
renewed charges against Botha
were merely a coincidence.
I wish I had a crystal ball.
Id be able to answer that, she
continued.
We will look at the decision
and act appropriately.
Botha indicated he felt the
timing to be suspicious, telling
a South African news channel:
I can only think this is related
to my work on Oscar Pistorius.
The drama came on the day
that sportswear giant Nike sus-
pended its contract with the
26-year-old, who is nicknamed
Blade Runner for his trade-
mark prosthetic legs.
Pistorius is accused of mur-
dering model Steenkamp, 29,
at his home early on
Valentines Day morning last
week. He says he fired shots
through a toilet door at what
he thought was an intruder,
believing her to still be in bed.
The athlete is set to find out
this morning whether he has
been granted bail or faces
months in jail awaiting trial in
a case that has stunned the
world, after court formalities
delayed a decision.
Pistoriuss defence lawyer
Barry Roux argued yesterday
that Bothas statements had
exposed the disastrous short-
comings of the states case.
Prosecutor Gerrie Nel said
Pistorius was bound to be con-
victed of murder, whoever he
believed he was shooting.
Police hit back over
Pistorius cop chaos
FRIDAY 22 FEBRUARY 2013
42
SPORT
cityam.com/sport
BY FRANK DALLERES
@cityam_sport
A BUSI NESS CLUB EXCLUSI VELY FOR THOSE AT THE VERY TOP OF THEI R GAME
The Tulip Club
Adorning the palaces and private rooms of Sultans, and the upper echelons of society,
the Parrot Tulip is synonymous with success. Its the territory of the highest ranking,
the most afuent, and the most inuential.
The Tulip Club will bring together the cream of the business community for the nest
in rugby hospitality at Saracens new state-of-the-art stadium, Allianz Park, in the heart of London.
As well as exclusive networking opportunities and special themed events in the heart of the city.
To join the waiting list, email hughvyvyan@saracens.net
Oscar Pistorius on a
dramatic day in court
as his wait to hear
whether or not he is
granted bail continued
43
RUGBY
COMMENT
JASON LEONARD
PRESSURE intensified on Chelsea
manager Rafael Benitez last night
after his side limped through to the
Europa League last 16, but the
Spanish boss insisted the Blues
deserved to progress.
Chelsea held a 1-0 advantage
from the first-leg in the Czech
capital, but the Stamford Bridge
crowd were stunned when Prague
took the lead through David
Lafata before half-time.
With the match
seemingly headed for extra
time, and the locals
becoming increasingly
restless, midfielder
Eden Hazard came
off the bench to
score with
virtually the
final kick of the game to spare
Chelsea and Benitezs blushes.
We had so many chances but, in
the end, we deserved to score, said
Benitez, who rested key players
Frank Lampard and Branislav
Ivanovic, while Ashley Cole and
Hazard started from the bench.
We rested some players and still
had 22 shots. I was pleased with the
performance of the team.
Chelsea, who will play Romanian
club Steaua Bucharest in the last 16,
started well, but fell behind on 17
minutes when Vaclav Kadlec set up
Lafata to fire in from close range.
The home side went close soon
after the break when Brazilian
midfielder Ramires turned
Oscars cross onto the near post.
But it was the introduction of
Hazard for Oscar on 67 minutes,
a switch Blues fans initially
vented their anger against,
which turned the game.
The 22-year-old Belgian
blasted in from a
difficult angle to spare
the supporters extra
time and Benitez more
barracking.
England have lost only once when Manu
Tuilagi, recalled at centre for tomorrows
game against France, has scored a try
cityam.com
FRIDAY 22 FEBRUARY 2013
Hazard comes off the bench
to rescue Blues and Benitez
MIDFIELDER Mousa Dembele set
up a mouthwatering Europa
League last 16 tie with Inter Milan,
after a 90th-minute goal saw
Tottenham progress in France.
Spurs held a 2-1 advantage from
last weeks first leg, but Maxime
Gonalons headed in before half-
time to give Lyon the lead on the
night and on away goals overall.
Midfielder Lewis Holtby and
striker Emmanuel Adebayor both
hit the woodwork as Spurs pressed
for an equaliser.
But Dembele got the crucial
goal his second for the club
just as Spurs appeared to be
heading out of the competition,
firing in low from 25 yards.
Spurs march on with dramatic
Dembele goal to set up Inter tie
Results
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French line-out a threat to England hopes
E
NGLAND must be confident
going into tomorrows RBS Six
Nations showdown with France.
They are playing better with
each match and are at home, but Im
surprised at predictions of a landslide.
Thats not going to happen.
France may have lost both games
so far but are due a big performance,
and what better occasion than at
their bitter rivals when everyone has
written them off? It wouldnt erase
their defeats but it would go a long
way to making up for them.
The danger with playing France is
that they are capable of scoring two
or three tries in quick succession, so
even with a healthy lead in the last
15 minutes England will not be able
to relax. When they get their tails
up, France are possibly the best
attacking side in the world.
Englands changes reflect the fact
its likely to be a confrontational
fixture. The French pack have
underperformed but will want a big
game in the scrum, where the
returning Dylan Hartley can provide
the hosts with extra feistiness.
France also pose a major threat at
the line-out. England lost to
Australia and South Africa in the
autumn both teams with strong
line-outs and Stuart Lancasters
selection of Courtney Lawes is an
attempt to combat that danger.
Lancasters willingness to make
changes, despite having won both
games, shows England are in a
position of strength and confidence.
Its hard on the guys dropping to the
bench James Haskell, Tom Youngs
and Billy Twelvetrees but it keeps
people on their toes and shows its
all about the next game.
I think England will win, but its
important they replicate their start
in Ireland; keep the scoreboard
ticking over and demoralise the
opposition something France are
susceptible to. I dont see it being
decided until the last quarter,
though, with a score of around 28-18.
Englands most capped player Jason
Leonard is a Senior Advisor for Besso
Insurance Group, an independent Lloyds
Insurance Broker specialising in all forms
of Commercial and Personal Lines
insurance www.besso.co.uk
Mousa Dembele helped Tottenham beat Lyon over two legs with a late goal
OLYMPIQUE LYONNAIS ...............1
TOTTENHAM HOTSPUR...............1
BY JOSH RICHARDS
EUROPA LEAGUE
CHELSEA .....................................1
SPARTA PRAGUE.........................1
BY JOSH RICHARDS
EUROPA LEAGUE
Eden Hazard scored in the
last minute for Chelsea
(2-3 on aggregate )
(2-1 on aggregate )
f i a t . c o . u k
FIAT PANDA 4x4
THE S.U.V OF THE YEAR