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Peter Sands has put an end to speculation that he would like the Bank governor job OF E-BOOKS StanChart boss bows

BY KASMIRA JEFFORD “Apple facilitated the publisher e-book retailers. out of governor race defendants’ collective effort to end A spokesperson for the DoJ said THE US GOVERNMENT sued Apple and retail price competition by coordinat- Apple, Macmillan and Penguin had five major book publishers yesterday ing their transition to an agency refused to engage in settlement talks. EXCLUSIVE His decision is a boost for Bank for colluding to fix the prices of e- model across all retailers”, said the Apple and Penguin could not be BY DAVID HELLIER deputy governor Paul Tucker, who books in a fight against growing com- complaint, which was filed by the reached for comment. Macmillan AND JULIET SAMUEL is seen by many as a favourite for petition from Amazon. antitrust division of the US depart- chief executive John Sargent denied in the role, which will become vacant The lawsuit filed in a New York dis- ment of Justice (DoJ). an open letter yesterday that the pub- PETER Sands, the chief executive of when incumbent Sir Mervyn trict court accused Apple and publish- US attorney-general Eric Holder lisher had conspired to raise prices. Standard Chartered Bank, last night King’s second term ends in June ing executives of “devising schemes” to claimed at a press conference yester- Meanwhile, a separate lawsuit was ruled himself out of the running for 2013. limit Amazon’s ability to discount e- day that top executives would meet on filed in Texas by several US states the job as the next governor of the Some of those who work closely books after the online retailer’s suc- a regular basis to discuss “confidential against the same publishers for similar Bank of England (BoE). with Sands say they first suspected cess at selling popular titles for just business and competitive matters – price fixing claims. The states reached Sands issued a statement to City his interest when he wrote an $9.99. including Amazon’s e-book retailing an agreement with Hachette and A.M. through a spokesman after open letter last month in which he It alleges that publishers Hachette practices” as part of a conspiracy to HarperCollins, who will together pay this newspaper spoke to a number was savagely critical of a new Bank Book Group, part of Lagardere; raise retail prices. up to $52m in damages. of people close to the banker. regulatory body that will oversee HarperCollins, owned by News Corp; Holder said that as a result of this Many had become convinced that the City. Holtzbrinck, owner of Macmillan; alleged conspiracy “we believe that Apple Inc he was lobbying hard for the Bank Sands’ letter triggered a debate Simon & Schuster, a CBS subsidiary; consumers paid millions of dollars 640 $ job. They suggested that Sands over bank regulation that pitted and Penguin, owned by Pearson, had more for some of the most popular 626.20 could come under pressure from him against Tucker. Those who agreed to switch to an “agency” busi- titles”. 635 11 Apr his board if he were to let the suggested that Sands wanted the ness model where publishers – rather Hachette, HarperCollins and Simon uncertainty continue any longer. job said that he has been lobbying than retailers – set “significantly high- & Schuster immediately settled with 630 A spokesman for the BoE said: chancellor George Osborne, who er” prices for e-books. the DoJ, which will continue to pursue “Peter has made it clear that he is has a major say in the decision, for The agreement between the firms, its case against Apple, Macmillan and 625 not interested in the Bank job.” some time. Last week, he was with which came as Apple prepared to Penguin. 620 A source close to the bank Osborne again in India, and joined launch its first iPad in 2010, also guar- This settlement prevents the publish- added: “He has a great job here, him at a dinner. ▲ anteed the technology giant a 30 per ers from making any further price-fix- this is a great company and he has ▲ cent commission on each e-book sold. ing agreements with Apple and other 3 Apr 4 Apr 5 Apr 10 Apr 11 Apr a huge job in a growth company.” ALLISTER HEATH & MORE: Page 2

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“Alpha-beta. Active-passive. Style-judgement. Core-satellite. Master the language, seize the opportunity.” Narayan Naik, Professor of Finance Investment Management Evening Programmes Equity Portfolio Management programme starts 25 September 2012 Visit www.london.edu/imp/ | Email fi[email protected] | Call +44 (0)20 7000 7397 Leading Financial Thinking THURSDAY 12 APRIL 2012 2 NEWS To contact the newsdesk email [email protected] We need an open contest to decide who will run the Bank

HERE is no doubt that George dates at this stage. Rather than mere- Treasury to cancel all of the gilts would be no CDS trigger and no D Osborne’s most important ly privately lobbying the chancellor, owned by the Bank – in other words, from ratings agencies only interested Tdecision over the next few EDITOR’S we need the first ever open contest for admit that the Bank has permanently in failures to pay private investors). Of months will be who he appoints the governor’s job: the candidates created more money, and used that to course, the credibility of UK mone- as the next governor of the Bank of LETTER should now make their intentions pay off government debt. Do taxpay- tary and fiscal policy would be badly England. That job, which becomes clear and release manifestos for all to ers really need to be paying interest to shaken – but that is at it should be. vacant next year, is by a huge distance read. It is too important a job to be the Bank on the gilts that it holds? A We have a major problem – pretend- the most powerful unelected position ALLISTER HEATH decided behind closed doors by a few cancellation would cut the UK’s debt ing otherwise doesn’t help anybody. in the UK; its formal powers now span men in grey suits. to GDP ratio from 63 per cent to 41 monetary policy, financial regulation, per cent, and slash the interest bill on KEN’S TAXES macroprudential policies, lender of with extensive private sector experi- CANCEL THE BANK’S GILTS gilts from £50bn to £32bn per year. My issue with Ken Livingstone’s tax last resort and even fiscal policy of ence. Now that Sands has ruled him- Speaking of which, in theory the The Bank holds these gilts on behalf planning is that he is being hypocriti- sorts via QE. There need to be as many self out, the leading banking Bank of England will eventually sell of the Treasury, so the Treasury is pay- cal. You can’t rage against legal tax good candidates as possible. It is a candidate is Lord Green, formerly of back to the markets the £350bn or so ing interest to itself (and regardless of avoidance, as Ken has – and then prac- shame, therefore, that Peter Sands of HSBC. Osborne should definitely steer in gilts it will own as a result of quan- definitional niceties, the fact is that tice it yourself. Socialist tax lovers Standard Chartered has ruled himself clear of appointing somebody who titative easing (QE). Yet I doubt this the state is borrowing from itself). such as himself should actually relish out of the race, as we reveal today. hates banking. Previous governors quantitative tightening (QT) will ever As M&G’s Jim Leaviss points out, the handing their hard-earned cash over Osborne should either appoint the showed that one could have authority happen. The UK will still be borrow- gilt cancellation could take place to HMRC, not do their best to cut their charismatic Paul Tucker – the Bank’s over the City without being ideologi- ing too much for years to come. using the same process and precedent bills. I doubt the electorate will for- deputy governor, who would repre- cally opposed to it. Osborne should A more honest and preferable set with the cancellation of £9bn of give him for his double standards. sent continuity but be far more of a also avoid appointing another aca- option would be for the authorities to UK of gilts acquired from the Post traditional candidate, at ease with the demic economist. admit that the £350bn has been per- Office pension scheme in April 2012. [email protected] City – or he should bring in a banker It remains tricky to assess the candi- manently monetised and for the No default would take place (so there Follow me on Twitter: @allisterheath

BY JULIET SAMUEL Arsenal would STANDARD Chartered chief executive Peter Sands yesterday became the first candidate to definitively rule himself be only other out of the race to succeed Mervyn King, Bank of England governor. His appearance on the scene and job for Sands exit leaves only two bankers as possible successors to King, whose final term as BY DAVID HELLIER governor ends in June 2013. The timeline leaves David Cameron John Vickers Lord James Sassoon Stephen Green UNTIL yesterday, Standard and George Osborne little time to Chartered chief executive Peter decide how they will fill the job. Sands had allowed a hunch that Traditionally, the governor has been he was seeking the job of Bank appointed by the Prime Minister and governor to become a gnawing chancellor, often with a nod from the possibility in the minds of many cabinet. Former chancellor Alistair who work with him or are close Darling promised to change the to the emerging markets bank. process by advertising the job publicly, Internally, he has often joked but the new government is not bound that the only job he would take by his decision. apart from the one he currently Whatever the method, David holds would be that of manager Cameron and Osborne will be left with of Arsenal football club, his local the final say-so, but they are likely to GETTY team. But until he ruled himself take the views of senior City figures Paul Tucker Gus O’Donnell or “GOD” John Varley Lord Adair Turner out yesterday, he had failed to into account alongside political imper- dampen the growing speculation atives. So who are the runners and rid- that the Bank governorship ers for the job? might have been another dream • Bank deputy governor Paul Tucker role he could have contemplated is the clear favourite and therefore leaving Standard Chartered for. could be a “safe” choice. Despite hav- Runners and riders in the Sands joined Standard Chartered ing served under King during his time via the consulting firm McKinsey in charge during the financial crisis, in 2002 and he became chief Tucker has managed to distance him- executive in 2006. After the self from him and receives cautiously banking crisis he worked with positive feedback from bankers. the previous Labour • FSA chairman Lord Adair Turner race to take King’s throne administration to help has spent much time setting out his recapitalise Lloyds and RBS. stall but is unpopular in the City. Varley’s leadership of Project Merlin, positioned of any banker, since his resenting the UK at the IMF and World He is seen as a somewhat quirky • Former chair of the Independent an attempt to broker a truce between bank did not require a rescue and he Bank. But his previous closeness to personality by bank chief Commission on Banking (ICB) and banks and politicians, was widely seen has now taken a job as trade minister. Gordon Brown could rule him out – executive standards. He is economist John Vickers has won as a manoeuvre positioning him for a But he sits in the House of Lords as a and a Treasury and civil service man married to Betsy Tobin, an favour by developing a banking policy senior regulatory role or honour. But Tory, meaning his independence could overseeing the Bank would be radical. American novelist, and is framework that got the coalition out Merlin’s perceived failure and the stig- be questioned. • Commercial secretary to the supremely comfortable joining of a sticky spot. But much of the heavy ma of having been a well-paid Barclays • Gus O’Donnell, the former head of Treasury Lord James Sassoon was her and his children at summer lifting was left to the Treasury and his CEO make his chances slim. the civil service, known by initials as tipped in a recent book about the music festivals. His children all reforms are widely disliked in the City. • Former HSBC chairman and chief “GOD”, spent over three decades in Bank, but his career as a Tory could went to a state primary school • Former Barclays chief executive John executive Stephen Green is the best- government jobs, including a stint rep- put his independence under scrutiny. near their home in Highbury. WHAT THE OTHER PAPERS SAY THIS MORNING power base for the new financial services regulator. The Bank of England Aviva considers plans for sale of US is set to announce as early as next week Tesco looks for new messenger to Casino billionaire plans mini Las Carnival’s booking volume improves that the Prudential Regulatory division Authority will be based at 20 Moorgate, talk to customers Vegas in Spain on lower pricing Aviva is considering plans to sell its life the old headquarters of JP Morgan Tesco yesterday embarked on a “review of Las Vegas glitz could be coming to Spain Carnival said yesterday bookings have assurance business in the US in a move Cazenove. its brand communications” yesterday and under plans American casino billionaire increased in recent weeks, with the analysts estimate could raise at least £1bn said that its incumbent advertising agency Sheldon Adelson has to replicate the exception of the Costa line following and mark an exit from one of the UK-listed Brazil’s Vale to press ahead with 100 would have to pitch for the account with Nevada strip’s famous strip. January’s deadly cruise ship grounding. group’s core markets. Andrew Moss, chief mega-ships for China market rivals. Battle for website addresses draws Judge rules MF Global can use executive, told investment managers at a All Leisure directors waive dividend recent meeting that it could consider offers. Vale has signalled it is prepared to to a close insurance money for Corzine commission more than 10 of its Directors of cruise company All Leisure The battle for some of the world’s catchiest A bankruptcy judge said MF Global can use City watchdog finds a new home controversial giant Valemax ships as the Group that operates the HebrideanPrincess website addresses will come to a head today existing insurance policies to pay potential iron ore producer battles with have opted to waive their rights to the final One of the hubs of City dealmaking as the window for applications for new “wrongful act” legal-defense fees for Australian-based miners for the key dividend on the back of increasingly “domain names” closes. former chief executive Jon Corzine. from the last decade is to become the Chinese market. stormy trading conditions. CITYAMCAREERS.com The new jobs website for London professionals cityam.com factory strikes BMW faces UK Record-beating Series hadcontributed to jump. the revamped forgood start the 3 ter last year, to 425,528vehicles. samequar-cent compared the with market inChina. toterly abuoyant recordsthanks ny andquar- breakingitsmonthly fortunes yesterday, compa- the with carmaker’s a rosierpictureofthe owned factory. the out onstrike in1984, whenRover now vote onindustrial action. apuppetshow”,than andwould dealhad“morestrings because the apayspurned riseof2.2percent 2,000workersof the balloted had terly salesyesterday. andmonthly ing to overshadow itsrecordquar- over pay andconditionsthreaten- dispute the plant inOxford, with action inalmost 30years atitsMini strike first BMW isfacingthe BMW saidits1Seriesmodelanda Group salesincreasedby 11.2 per paintedBMW’s latest salesfigures Oxford plantlast atthe Staff went The Unite unionsaid97percent MARION DAKERS BY JOHNDUNNE& rose 2.5percentto closeat premium carindustry. biggestthe driver for ofgrowth the quarter,first cementingitsplaceas largestgroup’s singlemarket inthe and Rolls-Royce brands. new recordsalesfor its BMW, Mini marketfaster the andachieve than added Robertson. best quarterthe initshistory,” and time highinsaleslast month said BMWsaleschiefIanRobertson. globe,” acrossthe balanced growth range andourstrategy ofhealthy, due to ourattractive, young model 185,728 vehicles sold. ever,had beenitsbest month with overall,ago. BMWsaidthat March ayearChina, 37percentmorethan sales. owned by BMWalsoreported record yesterday.

Frankfurt-listed sharesinBMW China overtook USasthe the itsplansto grow BMW reaffirmed “The BMWGroupachieved anall- “These outstanding resultsare The company sold80,014 carsin The Rolls-Royce andMinibrands

▲ ▲ BOTTOMLINE: Page 6 € 66.71 exec pay at BPannualmeeting Angry shareholders to protest BP chiefexecutive BobDudley hasoverseen thefirm’s response to theGulfspill has recommendeditsclientsvote blue chipinvestor told rewarding execs, aprominent abouthowBPis remain unhappy remuneration. Butsomeofthem to discussconcernsover already metwithbigshareholders Gulf ofMexicospillin2010,has recover fromtheeffects ofthe London. annual general meetingin director paypackagestodayatits shareholder dissentover its OIL giantBPwillfacedown Shareholder advisory bodyPirc Shareholder advisory BP, whosesharepricehasyet to BY MARIONDAKERS THURSDAY 12APRIL2012 City A.M. A.M. City offshore spill. about theUnitedStates’worst green groupswhoremainangry and makingavote lossunlikely. meaning ithasnomajorconcerns rating onBP’sresolutions, British Insurershasa“bluetop” awarded £4.6mfor theyear. clean-up operations, hasbeen Gulf disasterandhasoverseen the was appointedinthewake ofthe dividends andstrategy. lack ofconsultationover accounts,inprotestata firm’s down bothdirectors’payandthe BP willalsofaceprotestersfrom Associationof The influential Chief executive BobDudley, who

GETTY profit warning plunge after Nokia’s shares cent of the market.cent ofthe havesmartphones oneper lessthan US,whereits sales inthe Android system. Google’s Apple andphonesrunning market smartphone againstin the Nokia to hasstruggled winground volume maker ofmobilephones Windowsthe system. andswitchingoperating to software was droppingitsown Symbian last year it announced inFebruary 50percentsinceNokia than down 14.5 percentat crashing 17 percentbefore closing week US. launchingitinthe after a Lumia lessthan 900smartphone, buginitsnew found asoftware admitted yesterday Nokia had that Middle East, AfricaandChina. market, inIndia,the particularly competition smartphone inthe which itblamedonfierce quarter, first cent ofsalesinthe per operating lossofaroundthree quarters year. ofthis twowould first post lossesinthe it Finnish phonemaker that warned lowest level since1997, the after tailspin yesterday, fallingto their SHARES INNOKIA were sentinto a It has endured particularly poor It hasenduredparticularly Despite world’s being the biggest Shares hadalreadyfallenmore The doubleblow sentshares Chief executive Stephen Elopalso The company expectsto make an BY KASMIRA JEFFORD € NEWS 3.27. 3 THURSDAY 12 APRIL 2012 4 NEWS cityam.com Euro banker leaves door open Euribor hits a 21-month low as ECB’s cash floods the markets

BY HARRY BANKS for even more bond purchases The ECB, which left official KEY Eurozone bank-to-bank Eurozone interest rates at one per BY HARRY BANKS place allowing it to purchase debt buying programme would meet lending rates hit new 21-month cent last week, has poured over €1 of Eurozone nations, should the strong resistance from the lows yesterday, dragged down by trillion of ultra-cheap, three-year THE European Central Bank still need arise. Bundesbank and other ECB the enormous volume of cash the funding into the banking system has its bond-buying programme as “Will the ECB intervene? We policymakers from the Eurozone’s European Central Bank (ECB) has since the end of December, a move an option to ease pressure on have an instrument for healthier core economies. pumped into financial markets which has sparked a 45 per cent faltering euro member states, ECB intervention, the SMP, which has Another ECB executive board since late last year. drop in the prices at which banks executive board member Benoit not been used recently but which member, Germany’s Joerg The three-month euro interbank lend to each other. Coeure said yesterday. exists,” he told a conference. Asmussen, reiterated that the onus offered rate (Euribor), an estimate With the ECB expected to keep Coeure, the ECB board member He also said the scale of market was now on governments and not of lenders’ borrowing costs, limit-free liquidity available and in charge of market operations, pressure on Spain is not justified the central bank to act. dropped by six basis points to 0.7 interest rates at their record low said the central bank still had the given the reforms underway. “The ECB has done its part,” per cent – the lowest level since for the foreseeable future, further Securities Market Programme in Any reactivation of the bond- Asmussen told the Italian press. June 2010. falls in Euribor rates are expected. GREEKS TO GO TO THE POLLS NEXT MONTH Baroin: France Rajoy calls for must hit target or risk a crisis recognition of BY HARRY BANKS SCALING back plans to balance France’s budget by 2016 would risk a market backlash, its finance minister said yesterday, taking aim at the opposition Socialists’ Spain’s reform economic programme as a presidential election nears. Unveiling multi-year spending BY TIM WALLACE forecasts, President Nicolas RAJOY’S REFORMS Sarkozy’s conservative government confirmed it aimed SPANISH Prime Minister Mariano n €27bn in spending cuts announced in Rajoy hit out at French and Italian to cut the public deficit to an EU- ministers yesterday for talking down last month’s budget imposed limit of three per cent of the economy, as new data revealed n Announced another €10bn in GDP in 2013 and to zero in 2016, the depths of the country’s recession. “efficiency savings” in health and from an estimated 4.4 per cent “Spain’s future is at stake,” Rajoy education budgets this week in an effort this year. said after Tuesday’s market turmoil, to reassure worried investors Sarkozy’s Socialist challenger explaining: “The problem is that the n Moved to end national wage deals, Francois Hollande, who polls markets can lend or decide not to.” show is on track to win a 6 May Official figures yesterday showed allowing wages to fall head-to-head by as much as 10 industrial output in February was n Reduced labour market regulations, percentage points, has also said he down 5.1 per cent on the year – the making it easier for firms to fire workers aims to balance the budget – but second fastest fall in two years, and a not until 2017 and only if growth steeper drop than the 4.3 per cent example when explaining how high allows leeway for deficit cutting. decline in January. debts get governments into trouble, France has not run a balanced Consumer durables output dropped prompting a reprimand from Rajoy. budget since 1974. 14.8 per cent, followed by capital “We hope [other leaders] assume Finance minister Francois goods production at 10.6 per cent. their responsibilities and are more Baroin noted that Spain was “The declines in these components cautious in their statements. We don’t coming under market pressure for highlight the strains on both private talk about other countries. We wish loosening its 2012 deficit target. consumption and investment,” said other EU and Eurozone countries the “What would happen if we stray BNP Paribas’ Ricardo Santos. best. What is good for Spain is good for from the 2016 target? It would be “We expect GDP to fall 0.8 per cent the Eurozone.” a serious risk, to say the least, for in the first quarter, following the 0.3 The German government was more the perception of France’s per cent fall in the fourth quarter.” supportive, with a finance spokesman capacity to attain its deficit- Confidence in the economy and the expressing regret that “the markets reduction targets,” he told government’s ability to pay its debts have not yet fully recognised Spain’s parliament. must be restored if the crisis is to end, enormous reform efforts”. Citing returning household and other European leaders have Since Rajoy was elected he has taken confidence, the government

undermined that, Rajoy said. significant steps to cut the budget GETTY yesterday confirmed its forecast Italy’s Mario Monti blamed Spain’s deficit and improve labour market for growth this year of 0.7 per financial problems for renewed ten- flexibility, but worries persist over the GREECE will call a snap election for the 6 May, Prime Minister Lucas Papademos said cent, 1.75 per cent in 2013 and sions on financial markets, and governments’ debts – borrowing costs yesterday as he formally resigned from his role. A new government is set to be in place by 17 two per cent in each following French finance minister Francois rose to 5.99 per cent on 10-year bonds May, with hopes for a smooth handover to allow the country’s international bailout plan that year up to 2016, when the budget Baroin has used the country as an on Tuesday as investors panicked. staved off bankruptcy to continue. should balance. Now investors shun bunds as Gold seen hitting $2,000 on euro panic and US inflation IMF warns of safe haven danger BY HARRY BANKS annual outlook for the gold market that a record high price above PANIC over the ongoing Eurozone $2,000 an ounce next year could BY TIM WALLACE €3.87bn of the €5bn it hoped for five-year debt at a slightly crisis could push gold over the mark the peak of the precious on 10-year bonds, at a yield of 1.77 increased rate of 0.96 per cent. $2,000 mark in the next year, a metal’s bull run of more than a GERMANY failed to sell its full per cent, as investors were An IMF report warned the flight leading metals consultancy warned decade as monetary policy in major allotment of bonds in an auction reluctant to bid for such a low to safety, combined with yesterday. economies starts to tighten. yesterday, as Italy’s borrowing return. regulatory reforms and central Investors worried about investing Monetary easing in the US is also costs jumped on renewed panic in The Italian government sold bank buying has piled pressure on in equities or bonds, or concerned expected to push gold higher as the financial markets. €11bn in one year debt, paying a high quality assets, while about rising inflation, may put cash investors use it as a hedge against The poor sales came as the yield of 2.84 per cent – double the weakness of firms and some into assets like gold and silver to inflation. International Monetary Fund 1.405 paid in mid-March and sovereigns has reduced their keep their money safe. Furthermore, demand from (IMF) warned investors are hitting its highest since December. supply. After rising for four days straight China rose sharply in February – running out of safe havens for The poor sale came a day after This combination risks creating through market turmoil, the price exports from Hong Kong were up 20 their cash, risking increased stocks plunged five per cent on “more short-term spikes in levelled off yesterday. per cent – as the country is poised financial instability. renewed Eurozone concern. volatility and shortages of high- Metals consultancy GFMS, a unit to overtake India as the world’s Germany only managed to raise Meanwhile the UK sold £4.5bn in grade collateral.” of Thomson Reuters, said in its largest buyer of the precious metal.

compounded its factthat by the The badnewswas warning. profit iconic year, following yet another its lowest closingpricesincethat Yesterday, Nokia’s stock tumbledto Nokia wasking. confirmed of massmobilephoneusage, andit ring-tone. explosion Itheralded the has to onceubiquitous bethe Nokia taste, tune.For me,it aRadiohead era or,the better with for those best evokesSpice Girlssongthat television industry. For some,itisa Channel 5wasgoingto save the C A Spice Girlsrevival ismore likely thanaNokiaone 6 How timeshave changed. Britannia wascooland won alandslideelection, Tony Blair’sNew Labourhad AST your mindbackto 1997. NEWS has always smacked offutility. That makers smartphone luxury other against Appleandthe a fightback matters. Nokia’s attempt to launch US. in the bug been bedevilledby asoftware asan“iPhonekiller”–has firm the Lumia billedby 900smartphone – LINE BOTTOM In truth, a software bug hardly asoftware In truth, DAVID CROW

in the past. in the belongs SpiceGirls– Blair andthe of China’sHuawei. Nokia –like competitionface stiff likes fromthe Nokia were to change tack,itwould purchase suchdevices.Alas,even if people inemergingmarkets over nextfew the years aslegionsof willgrow exponentiallyone that itcontinuestothat dominate, and market,smartphone asegment sub-$200 energies onthe at under10 percent. $300now morethan worth stands globalmarket forof the phones ship haslongsincesailed.Itsshare ▲ ▲ It shouldhave instead focused its NOKIA: THURSDAY 12APRIL2012 Page 3 discerning carbuyersdiscerning now have faith engineering, China’smost major draws German isthe Automotive. oneofthe Although Brilliance with partnership Chongqing, underBMW's were madeinfactories in which notched upsalesof66,000. 76,000 cars,followed by Germany, biggest US,whereitsold wasthe on-year increaseof37percent.Next quarter, first inthe cars there ayear- Royce andMinimarques, sold80,000 maker, whichalsoowns Rolls- the largest car market. Theluxury Chinahasnowthat become BMW’s My favourite day factofthe hasto be BMW CHEERSCHINA set to double pension costs IMF warns UK underestimate longevity. od by whichforecasters typically expectancy over forty years, peri- the yearbased onjust athree riseinlife public andstate pensions. sions, aswell asitsresponsibility for antees for failedprivate sector pen- largely state fallonthe due to itsguar- IMFhascalculated.cent, the cent ofGDPto asmuch135 per increasing publicdebtfrom76 per pension provision issetto rocket, stability.UK’s financial next forty years, couldthreaten the expense, whichcoulddoubleinthe Fund (IMF). International Monetary on retirementcosts, accordingto the expectancy setto puthuge pressure expectedwith increasesinlife THE UKfacesapensionstimebomb, Osborne shouldtackletherisingcost ofpensionprovision urgently, warns theIMF “The longevity risk facedby govern- The institution’s calculationsare burden will this that It warned Between 2010 cost of and2050,the ballooning the that The IMFwarned The majority Chinesecars ofthe BY KATIE HOPE

shoddy areclearly over. cheapor mark denotingsomething China. skills orknowledge in hecouldfind didn’thave country the the that US,but Apple’s merchandiseinthe liked to make atleast someof President Obamahewould have before hedied,Steve Jobstold country.are madeinthe Shortly you Apple’sproducts considerthat manufacture top-notch goods. abilityto country’s in their tens oftrillionsdollars”,it warned. up to year the 2050,” asum“totalling adds one-halfto vast costs the ofaging expected currently than by 2050. people live for years just three longer huge gaps infunding for pensionsif Western economiesfacepotentially alladvanced Japan, butitsaidthat longevity costs are Germany and countries atgreatest riskofrising to risinglongevity. linked returns productswith financial IMF advised. It alsosuggested new to match incomeavailable,fits the the ment fundsto reduceretirees’bene- risinglongevity,with andallow retire- urgently pensionage inline the to lift governmentmeans the must act initsreport. IMFwarned the sustainability,” threaten fiscal further addressed soon,itcouldpotentially crisis….Ifnotadequatelyfinancial deteriorated stress ofthe underthe sheets whichhave alreadyseriously ments addsstrain to publicbalance ▲

“As such,longevity riskpotentially The IMF’sanalysis the found that impact financial The scaleofthe ▲ The days ofa“MadeinChina” That ishardly surprisingwhen BMW: Follow meonTwitter: @davidcrow83 [email protected] Page 3 cityam.com

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THURSDAY 12 APRIL 2012 8 NEWS cityam.com Candidates clash over tax, trust Livingstone’s tax savings and rickshaws at mayoral debate for 2011 estimated at £75k BY JAMES WATERSON “The tax planning which Ken doing exactly the same thing,” said way they are taking Britain.” MAYORAL candidate Ken Livingstone Livingstone undertook is BY JAMES WATERSON Lib Dem Brian Paddick. One of the few areas of saved over £75,000 in tax by straightforward, and would be Boris Johnson continued to agreement was on rickshaws, with channelling some of his earnings recommended by most advisers. KEN Livingstone could not escape attack his main opponent’s both Livingstone and Paddick through a company, according to Many have been taken aback by the the debate over his tax affairs as funding proposals, saying: “This promising to ban the vehicles. new research. fact that Ken has pursued options income arrangements dominated election is about trust. I won’t Minor candidates tried to The figures, prepared for Taxation that he has condemned others for,” the agenda at last night’s mayoral make promises I can’t keep. Ken muscle in, with Independent magazine by TolleyGuidance, said Mike Truman, editor of Taxation hustings. needs to level with London about Siobhan Benita protesting outside suggest that by channelling some of magazine. “His actions rather make A rowdy Westminster audience where the money is coming from.” the venue at her exclusion from his earnings through a private firm the point that the tax system allows gave the biggest cheer of the night Meanwhile Livingstone did his the debate, which was organised Livingstone paid £77,790 less tax such behaviour so that individuals to an attack on the Labour best to redefine the election as a by the Evening Standard. during the three years to June 2011 can plan efficiently. Some may be candidate’s choice to pay himself referendum on the government, The BNP’s Carlos Cortiglia, a compared to if he had been self- surprised that Boris Johnson appears through a private company. saying: “If Boris Johnson is re- Uruguayan immigrant, spent employed. not to have done something similar.” “The law allows you to do that. elected then we will see George much of the event waving a There is no suggestion that A recent ComRes poll found that So why should we be Osborne and David Cameron on newspaper in the air in an attempt Livingstone committed an illegal act 48 per cent of voters said revelations complaining? Because Ken television that night, saying that to attract attention while UKIP but he has repeatedly campaigned over Livingstone’s tax arrangements condemned other people for this is a vote of confidence in the supporters heckled repeatedly. against tax avoidance. made them less likely to trust him. Johnson says Ken sheds tear no money for rival’s pledge at launch of his BY JAMES WATERSON BORIS Johnson yesterday attacked Ken Livingstone for making “unfunded” promises on the campaign trail, claiming that the full manifesto Labour candidate has failed to identify funding for at least £2.7bn worth of pledges. repeated his headline pledge to intro- In a document entitled “Can't MAYORAL duce an immediate seven per cent cut Afford Ken”, Johnson’s team claim to the cost of public transport while to have identified 24 spending ELECTION also fleshing out new ideas, such as commitments made by Livingstone BY JAMES the proposal to cut costs in the private that go beyond the existing WATERSON rental market by establishing a let- funded plan. tings agency backed by City Hall. They include £1.1bn for a fares LABOUR’s Ken Livingstone shed a tear Livingstone said he hoped the final cut, £325m for the bad landlords yesterday at the launch of his full three weeks of the campaign would scheme and £220m for EMA. manifesto to be Mayor of London, “focus on the issues and not the trivia” The Labour candidate has later describing how the “awesome as he attempts to move on from con- repeatedly rebutted claims that he responsibility” of ensuring that he cerns over his tax arrangements and cannot fund his pledge to cut fares wins on 3 May was affecting him. align his campaign with popular by seven per cent from the TfL Livingstone became visibly emotion- Labour policies at a national level. surplus. al while watching an election broad- Miliband said Ken had “fought his Yesterday he told City A.M.: “You cast of his supporters declaring way back into the race”, telling City just need to go back and see that I “Come on Ken, London needs you!” A.M.: “There’s still a question as to cut fares in 1981, in 1984 and bus Party leader Ed Miliband briefly whether this is a celebrity post or one fares in 2007. This will be my placed his hand on the mayoral candi- where you can actually make a differ- fourth fares cut. The idea that you date’s back to comfort him. ence to people’s living standards. can’t cut fares in a city with the “For so many Londoners this elec- “Boris Johnson has used the post as a highest fares in the world is just tion makes a huge difference to their celebrity post. The task of Ken bizarre.” ability to put a hot meal on the table Livingstone and his campaign in the A spokesman for Boris Johnson for their kids,” Livingstone explained. next few weeks is to show to said: “Ken Livingstone is making The manifesto, launched at Londoners that this could make a dif- promises to Londoners which he Ravensbourne College in Greenwich, ference to their lives.” Ken Livingstone became visibly emotional watching his election broadcast yesterday knows he can’t keep.”

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THURSDAY 12 APRIL 2012 10 NEWS cityam.com Commerzbank Michael Page plans to boost share capital sees no pick up BY KATIE HOPE GERMANY’S Commerzbank plans to ask shareholders for permission to boost its share capital by up to €2.46bn (£2.02bn) within the next in banking jobs five years in a bid to improve its capital structure. The plans, published yesterday in BY ELIZABETH FOURNIER legal jobs, fell close to a two-month Steve Ingham said recruitment in the banking sector remained difficult its agenda for its AGM on 23 May, low following the update, despite the would enable it to redeem non- CITY recruiter Michael Page said yes- company posting an overall rise in net WHAT DO YOU MAKE OF voting shares held by the German terday it sees no end to the hiring fees by seven per cent for the first quar- government and Allianz and freeze that has hit the UK’s financial ter as a whole. ANALYST VIEWS MICHAEL PAGE’S FIRST convert them into hard equity. sector, as it posted a 12 per cent drop The total figure showed that March Interviews by Elizabeth Fournier QUARTER UPDATE? in net fee income from its banking had seen an unexpected slowdown on business. the 10 per cent rise booked in both PANMURE GORDON “Banking remains difficult and cer- January and February. PAUL JONES J&J fined $1bn tain geographies remain more chal- Industry insiders have suggested the lenging than others,” said the group’s traditional hiring boom associated First quarter results from Michael Page show some decent progress at chief executive Steve Ingham, identi- with spring has been pushed back in the gross level, though give us little clarity on how the year is likely to pan over selling of fying Italy, Spain and Britain as coun- recent years as companies stagger “out. Visibility remains limited and macro pressure suggests to us little tries that had been particularly badly bonus payments – delaying the rush of prospect for market improvements in 2012. hit. high-quality candidates to the market. Risperdal drug Shares in the recruiter, which spe- Gross profit rose, climbing to £136m SEYMOUR PIERCE cialises in accounting, financial and in the three months through March CAROLINE DE LA SOUJEOLE ” from £127.3m a year ago. Asia Pacific BY HARRY BANKS Michael Page International PLC showed the strongest growth, up 23 We make no changes to our full year 2012 earnings numbers: net fee p per cent, but at the opposite end of the interest of £580.2m and adjusted profits before tax of £75.4m, in line with con- JOHNSON & Johnson (J&J) was 490 438.10 11 Apr scale the UK declined by four per cent. “sensus expectations of £575.5m and £77.8m. We continue to believe that yesterday fined $1.1bn (£691m) 480 But Ingham insisted the group’s the rating is demanding against the peer group. for misleading patients and 470 international diversification meant it doctors about risks associated 460 was well-placed to continue to grow. ROBERT MORTON INVESTEC with its anti-psychotic drug 450 “The diversity of the business, in ” Risperdal. 440 terms of other professions away from The group has had a satisfactory start to the year, considering the Dustin McDaniel, attorney- 430 banking and other geographies away general for Arkansas, where the from the UK and southern Europe, uncertain background which has clearly impacted on candidate and company case was bought, said J&J engaged makes us feel that we can achieve solid “confidence. Given that it is still reasonably early in the trading year, we in “deceptive” practices when 3 Apr 4 Apr 5 Apr 10 Apr 11 Apr growth this year,” he said. are not changing our forecasts for the time being. ” marketing its Risperdal drug.

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Register now at: >KEKE dh^zϮϰd,WZ/> www.topmba.com/connect ϭϴ͗ϬϬͲϮϮ͗ϬϬdŚĞ'ŝďƐŽŶ,Ăůů͕ϭϯŝƐŚŽƉƐŐĂƚĞ͕>ŽŶĚŽŶ͕ϮEϯ /ĨLJŽƵŚĂǀĞĂŶLJĨƵƌƚŚĞƌƋƵĞƐƟŽŶƐƉůĞĂƐĞĐŽŶƚĂĐƚus at [email protected] GETTY cityam.com telecoms deal CVC in £400m in itsstores tough trading Dunelm hitby Daniel D’Aniello andhisco-founders are expected toCarlyle holdonto theirstakes in its Metropolitan LightCompany of CityTelecom HK. telecomthe andbroadband assets pay aroundHK$5bn(£405m)for scramble to East by to the agreeing privateunderlined the equity has Partners CVC CAPITAL futureprospects.”in the stores aheadwe remainconfident strategy andstrong pipelineofnew marginandoperating costs.gross approach to management of the we willmaintainourdisciplined impact onconsumerconfidence, economy and,recognisingits wider remain cautiousaboutthe executive, to added:“Itisprudent “encouraging.” new store pipelineremaining yearduring the was15, its with number ofnewstores openedsofar generally better. beenperforming town whichhave retailparks, rest inedge the high streets of with tough economicclimate. households tighten beltsinthe remained underpressureas homewaresmarketper centasthe £154.1m. quarter 11 grew percentto lighting, saidtotal salesfor itsthird kitchenwarebedding, curtains, and stores sellingitems suchas 110 mostly out-of-town DunelmMill statement. and March,” company the saidina store footfall patterns inFebruary by moredepressed offset partially quarter, the throughout were these inmulti-channelrevenuesgrowth and inJanuary performance fullyearfor the endingJune2012. tomargin growth be20basispoints saiditexpected gross firm but the quarter previousyear,third ofthe basis pointscompared the with year. forgrowth itsfullfiscal predicted weak margin gross British homewaresretailer quarter, third the through andthe conditions remainedchallenging DUNELM saidyesterday trading The London buyout firm will use The Londonbuyout firm “However acleargrowth with Nick Wharton, Dunelm’schief The company total saidthe hasninestoresThe group on Like-for-like was0.6 salesgrowth Dunelm, whichtrades fromover “Although we saw strong store Gross marginsincreasedby 30 BY HARRY BANKS BY PETEREDWARDS sporting brands. sporting to cash inoninterest in major $1.5bn inSingapore inanattempt listing Onefor ofFormula around nextfour years.the is expected to cost HK$2.5bnover includes amultimediacentre and air television service,which and Canadato build outitsfree-to- telecoms businessesinHongKong saleofits proceeds fromthe Morgan. Standard Chartered andJP aHK$2.5bnloanfrom funded with backed year, dealthis which is for Asia’slargest private equity- CVC isalsoplanningapart- City Telecom willusethe Carlyle eyes market capof$8bn Rental boom aheadofOlympics roadshow days. within andissetto beginaninvestorfloat $7.5bn to $8bninitslong-awaited Group isaimingfor amarket valueof PRIVATE equity Carlyle giantthe period in2010. rent in2011 compared to same the wereproperties being marketed to shows anadditional58,000 that outyesterday.figures 10 percentonlast year, according to availableproperties to leaserising numberof the booming, with BRITAIN’S rentalmarket is week andhassignedup21 under- investors soon,perhapseven next around 10 percent. raise $750mto $800mby sellingoff interests includeAllianceBoots,will The US buyout firm, whoseBritish The USbuyout firm, It isexpected to beginpitching to By contrast numberof the Research by Experian datagroup BY PETEREDWARDS BY JAMES WATERSON THURSDAY 12APRIL2012 Citigroup. writers includingJP Morgan and resales. compared to just 10 per centof capital of letsbeinginthe rentalmarket 20percent the with let out. market against 692,766 were that 769,077with taken properties to and rentalmarkets isnarrowing, approximately 12,000 in2011. forproperties saledroppedby lastin itsinitialpublicoffering year. raised $382.4mby issuingnewshares shares listed stock onthe market, which hasabout15 percentofits commitments. on operations, dealsandnewfund cashtothe pay down debtandspend plans to issuenewequity andwilluse $147bn inassetsundermanagement, Carlyle, basedinWashington with The valuesareacomedown from rivalApolloGlobal, It comesafter “This insightshows that London continuesto dominate betweenThe difference resale the for Denizbank to boostoffer Qataris forced during the last quarter.during the capitalaverage the cent higherthan Olympic boroughs hasrisen16 per letsinLondon’s as short-term beingoffered number ofproperties Easy Roommate show the that a managingdirector atExperian. investment,” Westley, saidJonathan along-termstill considerproperty to selloralternatively somemay as aback-up areunable plan ifthey homeowners may beusingrenting ing director Robert Easton. world andisledinBritainby manag- lists. group shareswhenthe their Rubenstein areexpected to holdonto Conway, DanielD’Aniello andDavid cent stake sameyear. inthe raised about$7bnby sellinga24per at$18bn, group the whileBlackstone a 7.5 percentstake inCarlyle, valuing Mubadalapaid$1.35bn forment firm Five years agoAbuDhabistate invest- privatethe equity boomof2006-07. Qatar Investment Authority. Qatar’s sovereign wealth fund,the Arab state andishalf-owned by tiny,in the natural gas-rich Gulf largest$25.8bn, QNBisthe lender Belgiangovernment.is advisingthe in October to sale.UBS adviseonthe Lynchbank BankofAmericaMerrill in afire-sale. market – gives accessto afast-growing which healthy Turkishbusiness– and wasnotwillingto sellthe too Qatarioffer low,considered the Dexiahad that said last month solesuitor.as the Sberbank pulledout,leaving QNB bidders,HSBCand other Two Turkish bankfor over sixmonths. to sellthe crisis, hasbeentrying revised QNBbidwas. book. Itwasnotclearwhatthe government hadwanted 1.5 times Belgian Deniz’s bookvalueandthe had originally bid1.1 to 1.2 times bank. $4bn for the understood to belookingfor upto sale emerged, andDexiais a 49percentrisesincenewsofthe market current (£3.7bn) after in the news. much as5.7percentonthe comment. Denizbanksharesroseas declinedtoadviser Citigroup available fromQNBandtheir been dismissedastoo low. had saying QNB’soriginaloffer that Dexia isexpecting,” headded, source. table,”and isonthe saidone matter the said. familiar with stalled over price,four sources earliertalks lender Dexia,after Turkishunitofstrickenthe Belgian made ahigherbidfor Denizbank, QATAR National Bank(QNB)has The firm has 33 offices aroundthe has33offices The firm Carlyle co-founders William Separate website researchby the With amarketWith capofaround Dexia mandated USinvestment matterPeople the familiarwith Eurozone Dexia, crippledby the QNB A secondsourcesaidthat $5.9bn Denizbank isworth No immediate commentwas iscloserto“The newoffer what “The bidhasbeenreactivated, BY HARRY BANKS NEWS 11 THURSDAY 12 APRIL 2012 12 cityam.com Got A Story? Email [email protected] Follow The Capitalist THECAPITALISTcityam.com/the-capitalist on Twitter: @citycapitalist Goldman Sachs more than FOOTBALL TRIUMPH FOR WINTERFLOOD doubles its UK charity spend

OLDMAN SAchs has been in first-ever christmas appeal); the vet- the wars of late, reputationally erans’ mental health charity G at least, what with former Combat Stress and City Year London. employer Greg Smith Yesterday, Debra, which describes claiming that his bosses sometimes itself as for people whose skin does- described their clients as muppets. n’t work, revealed the Goldman con- Smith also argued that the firm had tribution of £500,000 to be its single been losing its moral compass. biggest donation. So it is good to see in the invest- Debra is a national charity that ment bank’s latest accounts that it is works with families affected by still handsomely supporting a wide Epidermolysis Bullosa (EB), an ago- spectrum of charities. nising skin condition which causes In the UK, Goldman handed out a Goldman’s given a boost to skin charity the skin to blister with the slightest total of £19.1m in 2011 compared to injury. £8m the year before. The money ties given support by Goldman Debra’s CEO, Ben Merrett, said: went to charities in a number of sec- include Right to Play and “Without this most generous contri- tors, including arts and culture; Greenhouse; Debra; Opportunity bution, the research we have community; education; and human- International (the microfinance planned would not have been able itarian and medical. Specific chari- charity City A.M. supported in its to take place so soon.”

All city workers sporting pairs of shoes in eight hours to job helps children develop scuffed up shoes should draw attention to the millions independence and new skills. head to Tower 42, Liverpool of young people forced to earn a This dramatically differs from Street today from 8am as the living in the streets around the the work of street children, who charity Street Kids world. In a recent Optinum are often left to survive on their International UK is Research survey, the own by finding jobs such as attempting to break a majority of UK shoe shiners to scrape together London’s football clubs are still battling it out for trophies but one prize has already been won World Record for shoe parents agreed enough money for essentials in the City. Broker Winterflood beat Smith & Williamson on penalties in the Calastone’s Funds shining. A volunteer is that having a like food. The shoe shiner will Industry Charity Shield, which raised £12,000 for Research Autism. Julian Palfreyman, chief hoping to shine over 200 paid part time stop polishing at 4pm. executive of Winterflood, is shown on the left with (l to r) Anna Graziano, Calastone marketing manager; Scott Phillips, Winterflood’s captain, and Calastone boss Ian Taylor. THURSDAY 12 APRIL 2012 cityam.com NEWS 13 Indonesia buys Energy firms in Airbus planes BY HARRY BANKS INDONESIAN airline Garuda has agreed to buy 11 Airbus planes, in a tariff deal after deal that Prime Minister David Cameron said will support UK jobs. Garuda’s purchase of the A330 jets is worth around $2.5bn (£1.6bn), with factories in Britain working on the wings. Cameron said the deal was Ofgem probe “good news for the UK aerospace industry”. The PM is traveling in south east

BY JOHN DUNNE wind power. Bills are high and will Asia with a business delegation that continue to rise in the future, and it is includes defence firms such as BAE DEPUTY Prime Minister Nick Clegg not because energy firms are ripping Systems, and has said he wants to pro- yesterday unveiled a new system them off.” mote arms deals with Indonesia. under which energy companies will The change was announced by Clegg be forced to let customers know what following a review into the sector by GETTY their best deal is. industry regulator Ofgem. Deputy prime minister Nick Clegg announced the best deal guarantee The move could save households up Meanwhile Clegg said that the ” to £100 a year, according to ministers Department of Energy and Climate PM thinks again who have called for the change. Change would spend £190m a year to DO YOU FIND ENERGY TARIFFS Energy companies will be obliged to provide 270,000 fuel poor households CITYVIEWS

CONFUSING?* Interviews by Kendal Gapinski tell people about the most economic in low-income areas with free loft and and Michael Pooler on charity tax tariff for them. cavity wall insulation. EDWARD GRIGSON Yes.” There are so many of them out there. It Clegg said seven out of 10 people Christine McGourty from Energy BY MARION DAKERS have the wrong deal and pay too UK, which represents energy compa- MOTABILITY would be good for the companies to explain much. nies, said: “There are many different OPERATIONS which is best rather than having to work it out from all DAVID CAMERON raised hopes that Under the deal, the big six firms – ways people can manage their energy the options. I suspect many people will switch tariff. a planned tax relief on charitable British Gas, E.ON, NPower, Scottish bills, whether by changing tariff, donations could be watered down and Southern, EDF and Scottish method of payment or installing ener- ROZ FLEMING Yes” - I pay by direct debit and I have just had a yesterday. Power – will contact their customers gy saving measures such as insula- FIDELITY large bill, which doesn't make sense as I live The Prime Minister started to row once a year to tell them their best tion.” alone. Instead of bills based on estimates there should be back from plans to stamp out abuse deal. But consumer groups welcomed the of charitable giving, saying However George Godber, energy move to put the onus on energy com- a way for companies to read your meter automatically. yesterday he will listen “very analyst at Matterley, accused the gov- panies to volunteer their most suitable sympathetically” to the concerns ernment of “bashing” the utility deal. Consumer Focus’s director of STEVE UNWIN No - There is supposed to be competition out voiced by charities themselves, firms. energy Audrey Gallacher said: “This CITY OF LONDON there and different tariffs on offer. The bills which have warned the rules will “Politicians love to bash energy com- deal is long overdue... This needs to be CORPORATION can go up and down but in the end I think it evens out, so reduce donations. panies, the simple truth is energy bills part of a wider strategy to help people I just stick with the same supplier. But Cameron repeated claims that have risen mainly due to the UK’s overcome the burden of having to nav- some people are pouring vast sums huge commitment to uneconomic igate hundreds of complex tariffs.” *These views are those of the individuals above and not necessarily those of their company into bogus charities to avoid tax. nets him£7.5m dividend boost Terry Smith’s 6.5 percentto £1.12m andhe saw hispay andbonuspackage fall lished yesterday. whichwaspub- annualreport, the as adividendof£1.6m, accordingto long-term incentivethe plan,aswell £1.85mare currently worth under and received shareoptions,which owns percentofTullett aroundfive since 2005. was frozenat£650,000,asithasbeen £119.2m. to cent dropinpre-taxprofit moil last year andposted a15 per felt impact the ofsevere market tur- £3.5m. nearlyshares anddividendsworth but hereceived apackage offree which hecannotcashinuntil2014, £3.38m, halfofwhichcameinshares £7.5m intotal compensation last year. executive picked Smith up Terry veteran andTullettPrebonchief CITY 14 Finance director Paul Mainwaring The former East Londonschoolboy year for the basicsalary Smith’s Tullett, amajor interdealer broker, to bonuswascutby asixth Smith’s BY PETEREDWARDS NEWS 340 subdued activity,” hewarned. ing 2012, aswell asperiodsofmore volatility andheightened activitydur- will besomeperiodsofmarket seems reasonableto there expectthat remain unsettled,however, andit lenging,” report. Hamill saidinthe are expected to continueto bechal- February. down and onepercentfor January year like-for-likethis with revenue to hadmadea“reasonable” start firm received shareoptionsof£461,500. 350 345 355 335 “The world’s financial markets“The world’s financial “Market andcompetitive conditions Hamillsaidthe Keith Chairman Tullett Prebon PLC 3 Apr p 4 Apr 5 Apr 10 Apr 346.00 11 Apr 11 Apr “intentional homicide”over Heywood's death. senior Communist Party officialBoXilai(top right),hasbeendetainedonsuspicionof was found deadinChinalast November. GuKailai(top left),thewife ofdismissed “disturbing” and“tragic case”ofthemurder ofUKbusinessmanNeilHeywood, who PRIME Minister David Cameron yesterday saiditwas importantto getto thetruthin CAMERON WELCOMES CHINESEINVESTIGATION THURSDAY 12APRIL2012

GETTY Focus closed as Consumer CAB boosted worldwide.” protection isadmired that vandalise asystem ofconsumer setto looks resourced plan...that “shockingly ill-conceived andunder- changes, however,the asa Which? of consumergroup attacked empowering them”. championing needsand their voice“publicly-funded ofconsumers, Citizens’ Advicewould becomethe minister,consumer affairs said beyond boundaries. localauthority go crimesthat lending andother tackle internet scams,illegal money to combatroguetraders and officers will work trading standards with Board willget anextra £10.5m and technical Regulated Industries Unit. will berepresented new by the energy andpostal servicescustomers to replaceConsumerDirectlast week. yesterday. Itlaunchedanadviceline forDepartment Businesssaid unregulated industries, the role inspeakingupfor consumersin Fair Trading (OFT)andplay agreater for Office responsibilities fromthe systemthe ofconsumerprotection. government shakes department up expanded asVinceCable’s THE roleofCitizens’Advicewillbe Peter Vicary-Smith, chiefexecutivePeter Vicary-Smith, Yesterday Norman Lamb, The National Trading Standards Consumer Focus willbeaxed and Citizens Advicewilltake on BY PETEREDWARDS cityam.com THURSDAY 12 APRIL 2012 cityam.com NEWS 15 Freshfields tops global advisers Gieves & Hawkes sold for £60m BY ELIZABETH FOURNIER Michael Jackson over its 240-year after posting a 51 per cent rise in the Chinese market. history. But despite attracting 2001 profits. It was sold by Hong Kong based on M&A deals SAVILE ROW tailor Gieves & Hawkes, high-profile clients, the Trinity – a subsidiary of property developer and garment which dressed Prince William for company has not posted a consumer brand supplier Li manufacturer USL Holdings, which BY ELIZABETH FOURNIER his engagement announcement and profit since 2005. & Fung – has paid £32.5m has owned the company since 2002. wedding last year, is being acquired Its new owner, which also upfront for Gieves & Gieves & Hawkes started life as by its Hong Kong licensee Trinity in sells Cerruti 1881 across China, Hawkes, with further an outfitter for the British Army MAGIC circle law firm Freshfields a deal totalling £60m. said last month it was on the payments up to a maximum and Royal Navy, beginning a long Bruckhaus Deringer has come top of The suit maker, which was hunt for European acquisitions of £60m due annually over association with the Royal family a list of global advisers on M&A founded at 1 Savile Row in 1771, the next 18 years. The future which still sees it hold warrants deals for the first quarter of 2011, makes both military and business Prince William regularly payments are based on the appointed to the Queen, the Duke bolstered by its leading role advising suits, and has dressed Winston wears Gieves & Hawkes brand’s ongoing of Edinburgh and the Prince of Xstrata on a takeover bid by Churchill, Charlie Chaplin and performance in Wales. commodities giant Glencore. In the three months to 31 March, Freshfields advised on 39 deals worth a total of $84.7bn (£53.2bn), BA to cut jobs according to Mergermarket, of which a huge $53.5bn is attributable to the Glencore takeover that was announced in early February. as it outsources It also helped UPS on its $6.8bn takeover of TNT Express in March. Linklaters – which is working for Gatwick work Glencore on the Xstrata deal – came in second with deals worth $77.6bn over the quarter. Though the firm BY MARION DAKERS advised on more individual transactions than Freshfields, with a BRITISH Airways is planning to total of 48, the lower combined shake up its operations at value meant it lagged behind its Gatwick, in a move that unions rival. said could cost hundreds of The rankings show how much a jobs. single high-value deal can influence The flagship carrier said it has quarterly rankings, with last year’s begun talks with unions over job top adviser Wachtell Lipton Rosen & cuts as it outsources 400 Katz dropping out of the top 20 baggage and coaching roles to a completely, and second place third party supplier and scales Simpson Thacher falling to 20th. down its customer services On the flipside King & Wood team. “As a traditional full-service carrier with a long history, we have to meet the challenge of transforming our cost base to compete more effectively in the short-haul market, while continuing to deliver outstanding service and value for our customers,” the company said in a statement yesterday. BA is the only airline at Gatwick still directly employing its own ground workers. The Unite union said the overhaul was “extremely worrying for staff” and called on BA to ensure there are no Freshfields, led by Will Lawes, is the top compulsory redundancies. global adviser on M&A deals The airline has said it will offer existing ramp workers the Mallesons shot up to third place chance to work with the as-yet- from 125th this time last year, by unnamed external supplier, winning roles advising on two under employment transfer separate Glencore deals – for the laws. bidder on its acquisition of But the GMB union said 170 Canadian grain handler Viterra, but jobs are expected to be lost in a also for Xstrata as the target. “disaster for staff morale at BA In the UK domestic rankings by at Gatwick”. value, which do not include “GMB will want talks with the Glencore/Xstrata, Freshfields and company to get to the bottom of Linklaters feature further down the what it is trying to achieve at list in fifth and 10th places Gatwick and we will want to see respectively. proper consultations with our The top spot was instead taken by members on the way forward. fellow magic circle firm Clifford GMB members want BA to take Chance, which has worked on a total this announcement off the table of 16 deals worth $12.8bn since the to allow this to happen,”said start of the year. GMB regional officer Gavin American firm Sullivan & Davies. Cromwell took second place in the UK – up from 10th last year – and also led the US rankings, where it TOP LEGAL ADVISERS TO GLOBAL M&A TOP LEGAL ADVISERS TO UK M&A booked $32bn worth of deals. Mergermarket also released its PR Ranking Q1 2012 Q1 2011 Ranking Q1 2012 Q1 2011 adviser tables for the first quarter, which showed RLM Finsbury climbing eight positions from its Q1 2012 Q1 2011 Company Name Value Deal Value Q1 2012 Q1 2011 Company Name Value Deal Value 2011 ranking to dominate the global (US$m) Count (US$m) (US$m) Count (US$m) table by deal value. Brunswick moved up one spot to take first 1 8 Freshfield Bruckhaus Deringer 84,656 39 78,791 1 19 Clifford Chance 12,815 16 5,743 place in the global PR league tables by deal count, having worked on 41 2 7 Linklaters 77,639 48 79,340 22 10 Sullivan & Cromwell 10,307 7 9,160 transactions. The UK list saw Brunswick pip 3 125 King & Wood Mallesons 62,572 12 2,947 33 31 Kirkland & Ellis 10,187 7 2,108 RLM Finsbury to the post on both deal count and value, with 4 4 Sullivan & Cromwell 40,606 32 97,309 44 1 Allen & Overy 9,330 11 30,552 Powerscourt, Sard Verbinnen and FTI Consulting completing the top 5 6 Skadden Arps Slate Meagher & Flom 28,466 30 82,892 55 3 Freshfields Bruckhaus Deringer 8,484 13 29,205 five. THURSDAY 12 APRIL 2012 16 NEWS cityam.com IN BRIEF BAA Traffic Total says leak could stop by May Heathrow at its n A leak at Total's North Sea Elgin gas platform could be stopped by the end of April if everything goes as planned, UK managing director Philippe Guys said 8.6m yesterday. Guys said that the French oil 4% major planned to carry out a successful busiest thanks Total number of passengers “dynamic kill” on the leaking G4 well who travelled through before May. “We are working hard and if BAA’s airports in March all goes as planned we envisage by the end of this month we should be having 5.7m control of the well,” he said. Total has Heathrow said the leak is costing it $2.5m (£1.5m) to new markets a day so far, and its stock has dropped 6.9% by almost seven per cent since it was reported, knocking billions of euros off BY MARION DAKERS challenging economic environment”. the company's value. But he warned that Heathrow is MORE THAN 70m people travelled now operating at 99.2 per cent capac- 1.5m Arcadis acquires Davis Langdon through Heathrow in the last year, ity, making it difficult to introduce n the airport’s busiest ever, according more routes to popular destinations. Scottish Airports Arcadis an international to figures from owner BAA out yes- British Airways parent IAG recently consultancy, design, engineering and terday. snapped up smaller carrier BMI in management services company Traffic at Britain’s busiest airport order to take over its lucrative land- 1.9% yesterday announced that it has was up six per cent in the year to ing slots at the airport. acquired Davis Langdon & Seah, a cost March, which BAA credited to the At Stansted, BAA’s other London air- 1.3m and project management consultancy soaring popularity of its routes to port, traffic fell 4.7 per cent to 1.3m working across Asia, with 2,800 newer markets such as China. passengers in March and 2.5 per cent Stanstead people in 10 countries. DLS reported Its flights to and from Brazil to 17.8m in the year. 2011 revenues of just over $125m enjoyed a 62.3 per cent jump in traf- BAA has been ordered to put Traffic to 4.7% (£78.5m) Through the deal Arcadis fic in March compared to a year ago. Stansted and Edinburgh up for sale North Atlantic grows to well over 21,000 staff with Heathrow’s figures were also after losing a competition €2.4bn in revenues. helped by Easter falling early appeal in February. this year, meaning some holi- Across all of BAA’s six air- daymakers chose to travel in ports, which include Roxi abandons Kazakh well March rather than April. Glasgow, Aberdeen and 13.6% n Roxi Petroleum announced yester- Colin Matthews, chief Southampton, long-haul day that had it abandoned and plugged executive of BAA, said traffic rose 5.2 per cent in its NK-10 well in Kazakhstan, sending reaching 70m annual pas- March compared to last Traffic to its shares down 15 per cent. The move sengers is “a major mile- year. Brazil came after drilling found high water stone” for the hub, This rise came at the content with only minor gas deposits “demonstrating the resilience expense of domestic 62.3% which were not commercially viable. of the airport in an otherwise flights, which saw traffic *all figures are for March The central Asian-focused oil explo- drop 2.6 per cent to 1.49m 2012, compared to the ration company started drilling the well BAA boss Colin Matthews passengers last same period last year in November last year. had a record year month. MINT

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For more information visit www.mintpolointhepark.com THURSDAY 12 APRIL 2012 cityam.com NEWS 17 Japanese stock BMW sales soar to a new record market hit by BY JOHN DUNNE faster than the market and achieve new record sales for its BMW, Mini Sony losses BMW yesterday reported record and Rolls-Royce brands. first quarter sales thanks to a buoy- China overtook the US as the ant market in China. group’s largest single market in the BY MICHAEL POOLER Group sales increased by 11.2 per first quarter, cementing its place as cent compared with the same quar- the biggest driver of growth for the JAPAN’S Nikkei index fell for the ter last year, to 425,528 vehicles. premium car industry. seventh consecutive session BMW said its 1 Series volume The BMW brand held off rival yesterday, enduring its worst run in model and a good start for the Audi in their neck-on-neck race for three years after Sony more than revamped 3 Series had contributed the top spot in the industry. doubled its loss forecast for the to the jump. The Rolls-Royce and On Tuesday Audi said it had sold year, in the wake of renewed fears Mini brands owned by BMW also 346,100 Audis in the first quarter, over European sovereign solvency. reported record sales. only about 10,000 fewer than the Average share prices dropped by The company sold 80,014 cars in BMW brand. 0.8 per cent, with the index closing China, 37 per cent more than a Mercedes-Benz lagged behind down 79.28 points at 9,458.74, year ago. Meanwhile BMW said with just 313,902 vehicles sold in hitting a two-month closing low. that March had been its best the first three months. The drop was precipitated by month ever, selling 185,728 vehi- BMW profits jumped by 51 per concerns over Italian and Spanish cles. cent to €4.9bn (£4bn) in 2011. government finances that “These outstanding results are Shares in BMW rose 2.5 per cent dampened investor confidence and due to our attractive, young model yesterday. a firming of the yen. range and our strategy of healthy, This was compounded by a trio of balanced growth across the globe,” Bayerische Motoren Werke AG Japanese electronics giants flagging said BMW sales chief Ian € greater than expected losses. On 70 66.71 Robertson. 11 Apr Tuesday Sony doubled its predicted “The BMW Group achieved an all- 69 net loss for the last financial year to time high in sales last month and a record ¥ 520bn (£4bn), signalling the best quarter in its history,” 68 the company’s fourth straight year added Robertson. 67 in the red. He said the luxury BMW 6 Series Shares in manufacturers Sharp Gran Coupé and a model revision 66 and Panasonic tumbled in tandem of the flagship BMW 7 Series would with Sony. The firms have forecast be launched this year. losses of ¥ 380bn and ¥ 780bn BMW reaffirmed its plans to grow 3 Apr 4 Apr 5 Apr 10 Apr 11 Apr BMW sales are being buoyed to record levels by booming demand in China respectively. Improving margins help WS Atkins to keep profit on track BY JOHN DUNNE despite a delay in the awarding The company added: “The of railway signalling contracts, group’s operations in the DESIGN and engineering UK operating margins were up. Middle East and Energy have consultant WS Atkins WS Atkins cut 300 staff as a continued to enjoy strong yesterday said it was on target result of the bleak economic market conditions and have for its full year forecasts while environment, as the UK ended the year trading in line UK margins were improving. government cut back on with our expectations.” The British company said outsourcing. It added that its north that it was on course to hit “The UK region has ended American business was also pre-tax profit estimates of the year well and, as improving after a slow start. £100m. anticipated, saw modest It achieved a similar level in growth in underlying WS Atkins PLC the previous year, on revenues headcount in the second half p 750 720.00 of £1.7bn. of the year,” the company said 11 Apr The company is the in its trading statement. 740 engineering designer for the Atkins is the largest 730 Olympics and has won a string engineering consultancy in the of contracts in the year so far. UK and around half its 720 It was recently given a five- revenues are generated in 710 year contract for the road and Britain. 700 drainage systems in Qatar’s It said it expected to finish capital Doha. the year to March with net And the firm said that cash of about £120m. 3 Apr 4 Apr 5 Apr 10 Apr 11 Apr Sainsbury’s to buy 18 Total petrol stations from Rontec BY KASMIRA JEFFORD opportunity to support our plans Experian. for growth and to extend the Rontec is a consortium led by J SAINSBURY said yesterday it will reach of the Sainsbury’s brand.” tycoon Gerald Ronson’s Snax 24 buy 18 Total petrol stations across The retailer is understood to be service station business. Last year the country from Rontec as the interested in fitting some of the it bought 810 filling retailer looks to expand its fuel larger sites with its Sainsbury’s stations from business and grow the number of Local stores, while also keeping French giant convenience stores. the pumps. Total before The deal, which is subject to The OFT said it was considering selling 254 of approval from the Office of Fair whether the deal would result “in them to Shell for Trading, includes seven Total- a substantial lessening of £240m. branded stations in London, as competition in the UK fuel well as sites in the Midlands, market”. Sainsbury’s currently Yorkshire and Lincolnshire. has 262 fuel outlets, according to Phillip Bell-Brown, director of property development at Sainsbury’s, run by Justin King, has Sainsbury’s, said yesterday: “The bought 18 petrol stations from Rontec acquisitions provide a unique THURSDAY 12 APRIL 2012 18 NEWS cityam.com Fed’s Beige Book lifts hopes for BoE says the direct debit system needs protection solid recovery across the States payments last year – could face a BY TIM WALLACE liquidity crisis if a large member BY TIM WALLACE growth, with New York and Kansas “Difficulty finding qualified THE interbank payment systems defaults. Currently, if a member City reporting an acceleration in workers, especially for high-skilled which keep the country’s finances does default, its debit position THE US economy is continuing to growth and Minneapolis positions, was frequently working might not be could exceed liquidity expand at a “modest to moderate registering solid expansion. reported.” sufficiently well protected committed by other members. pace,” the Federal Reserve Car manufacturers are Warm weather boosted activity against banks going bust or “Further progress” is also reported last night, as the performing particularly well, the and particularly tourism across the development of technical needed to make sure the Faster manufacturing, professional report said, with new car sales some districts, though a lack of problems, a Bank of England Payments Service adequately services and retail sectors all rising strongly – though high fuel snow hit Minneapolis. report warned yesterday. prioritises systemic risk recorded strong growth. prices may threaten this source of The Beige Book, prepared this For example, management, the report However, rising energy and fuel growth. time by the Cleveland Fed based on Bacs – the system said. prices are beginning to worry The relatively healthy outlook information collected between mid- that handled But the report gave producers and consumers, was also reflected in the labour February and 2 April, has market 5.6bn direct overall praise to the according to the Beige Book – a market. interest because it is based on debit service providers for regular publication which analyses “Hiring was steady or showed a anecdotal reports from business BoE’s Mervyn reducing risks and the economy by region and sector. modest increase across many people from coast to coast and so King is wary of building protections All 12 districts registered districts,” the Fed explained. reflects real-life conditions. a liquidity crisis against crises. LOCKHART: NO NEED FOR MORE QE Pressure on US India and Brazil banks to raise capital buffers pick up pace as BY TIM WALLACE

TOP FED officials yesterday warned against the risks to financial stability posed by European debt and pushed for banks to hold more exports boost capital against future crises. Kansas City Federal Reserve president Esther George said the leverage ratio is one buffer in the financial system that is historically there to absorb losses, and that output growth there must be an emphasis on leverage “no matter how difficult and costly”. BY TIM WALLACE creation hitting a seven-quarter “With regard to correcting the high. incentives in banking, the most EMERGING economies expanded Economists believe this accelerat- important challenge we face is in strongly in the first quarter, and ing growth point to healthier long- constructing an appropriate, but have plenty of monetary and fiscal term growth compared with carefully limited, public safety net,” “ammunition” to bolster growth developed markets, and that they she explained. should it falter – in stark contrast to are in a better position to support However, she also warned against European economies, a report by growth if the economies wobble. expanding the regulator’s roles on HSBC argued yesterday. “Whereas interest rates are down the basis that moral hazard could Manufacturing production accel- at more or less zero in both the US arise in more and more areas, erated in India and Brazil, and grew and Europe, emerging nations still where state backing boosts at a slightly slower pace in Russia, have plenty of available ammunition incentives for risky behaviour. the study found, though Chinese including rate cuts, reserve ratio cuts Meanwhile Boston Fed president output fell for the third consecutive and, if necessary, more fiscal stimu- Eric Rosengren warned money quarter. lus,” said HSBC economist Stephen market funds could be dangerously The rate of expansion in services King. over-exposed to European sovereign hit a four-year high in Brazil, and “However, emerging nations still debt. also expanded in India and Russia. have to perform a juggling act, bal- The funds are designed to invest Across the economy as a whole, ancing the risks of too little growth in very safe assets, providing a China saw new export orders fall at against the threat – if not yet the similar risk and liquidity profile to its fastest pace for 12 quarters. reality – of too much inflation.” bank accounts. India was the only BRIC to report However, Rosengren warned the rising new export orders, as demand All BRIC economies except China accelerated debt crisis was endangering that remains weak in the Eurozone. in the first quarter low-risk structure – and could Those results take HSBC’s emerg- India Brazil transfer some of that risk into the ing market index to 53.4, up from 70 China Russia US. 52.4 in the previous quarter and fur- 65 “A significant source of the credit ther above the “no change” level of 60 risk in many prime money market 50. 55 funds over the past year has been Employment as a whole increased 50 the large exposure to European for the eleventh consecutive quar- 45 GETTY banks,” he said. ter, though at its slowest pace in two 40 THE US economy remains fragile but things would have to get a lot worse for the Because of their large size, and a half years. 35 “money market funds remain an 30 Federal Reserve to launch another round of monetary stimulus, Atlanta Fed However Brazil’s labour market 2006 2007 2008 2009 2010 2011 president Dennis Lockhart said yesterday. “I view it as a policy that would respond important potential transmission stood out as an exception, with job 50.0 = no change on the previous quarter more to a fairly dramatic negative change of direction in the economy,” he said. channel to the US.”

Private Property UK tries out real-time tax scheme Australians worried on GDP outlook Finance BY TIM WALLACE HMRC hopes will save BY MICHAEL POOLER August, despite robust income employers £300m per year. growth and low unemployment. •Individuals, companies, SPVs etc. A PILOT for a new real-time This represents “the AUSTRALIAN consumers Respondents were concerned •We will arrange funding for you information system was biggest single contribution continue to have a pessimistic about the future of their family from £30k to £20m. launched by HM Revenue and that any tax change could outlook on the economy despite finances but this was •A quick and true alternative Customs yesterday in an effort make,” according to positive indicators, according to contradicted by respondents’ to slow bank funding. to cut down on over- and exchequer secretary David a survey published yesterday. improving view of conditions under-payments of income Gauke. The Melbourne Institute over both the short and long- Soho Corporate tax. Ten firms have volunteered index of consumer sentiment term. 0208 123 2151 The scheme is designed to for the pilot, and HMRC says fell by 1.6 per cent in April to Analysts believe the Reserve www.sohocorporate.co.uk reduce errors in the pay as most employers will be using 94.5 points, following a five per Bank of Australia will now be you earn (PAYE) system when the system in full by October cent drop in March. This is its under increased pressure to Steven McColl – Investment Partner at Soho Corporate. workers change jobs, which 2013. lowest reading since last drop base interest rates. NEW JOBS

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in association with CITY MOVES WHO’S SWITCHING JOBS Edited by Tom Welsh NEW YORK HIG Europe Rowan Dartington sugar market making desk in London. Puchi-Donnelly joins from Credit Agricole, where she was a director and senior The private equity firm has The private client stockbroker has appointed Ian Entwhistle agricultural commodities trader. She has also held similar REPORT announced that Carl Harring has as relationship and business development manager. roles at Fortis Bank, ARCIM Associates and JP Morgan. joined its London office as a Entwhistle worked on investment training for the National managing director. He arrives Association of Pension Funds, and spent three years as from HgCapital, where he led a associate director at SLC Asset Management. Prior to this he Helios Towers Africa number of small and medium- spent thirteen years at Merrill Lynch Asset Management. The African telecoms firm has announced Philippe Loridon’s Good earnings sized European leveraged appointment as chief executive of its Democratic Republic buyouts. He previously spent Aksia of the Congo subsidiary. Loridon joins from Equateur nine years at Apax Partners. Telecom Congo, a subsidiary of the Bahrain-based Bintel help US shares Oliver Newton has been appointed senior adviser in the Group, where was chief executive. Loridon has twenty years Optos hedge fund research and advisory firm’s London office. He experience in the telecoms industry, including thirteen at joins from Tarchon Capital Management, where he was Hutchison Whampoa, where he rose to the position of chief bounce back The medical retinal imaging firm has announced that Louisa responsible for day-to-day management of the fund of executive of Hutchison Sri Lanka. Burdett will succeed Christine Soden as chief financial funds portfolio. He has also previously worked in KPMG’s officer. Burdett joins Optos from the Financial Times Group, business advisory and services team. N encouraging start to where she has been chief financial officer since 2008. She Jones Lang LaSalle earnings season helped US previously held the same role at Chep Europe, a division of Marex Spectron The financial and professional services firm has appointed Astocks rebound yesterday five Brambles, the Australian listed pallet distribution company. Paul Betts to the new role of EMEA head of logistics and days of losses that pushed the Burdett spent six years at GE Healthcare, where she was The commodities sector financial products broker has industrial. Betts joined the firm from King Sturge as part of S&P 500 below a key technical level. chief financial officer of its medical diagnostics business. announced that Ana Puchi-Donnelly will become head of its the two companies’s 2011 merger. Equities cut gains late in the session after the Federal Reserve said rising energy costs were a concern for eco- +44 (0)20 7092 0053 nomic growth. Atlanta Fed President SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com Dennis Lockhart said the economy would have to get a lot worse before the central bank would offer more To appear in CITYMOVES please email your career updates and pictures to [email protected] stimulus. Sectors linked with economic growth led the way higher as their recently beaten-down prices made them attractive to bargain hunters. LONDON REPORT BESTof theBROKERS The S&P financial sector index rose 1.6 per cent. Bank of America gained BT Group PLC 213.20 3.7 per cent. p 11 Apr Alcoa rose 6.3 per cent a day after Banks lead FTSE to a rebound in 230.00 the Dow component reported a sur- 225.00 prise first-quarter profit, easing con- cerns about a weak earnings season. 220.00 “Expectations have been running spite of jitters over the Eurozone very low, so the optimistic start to 215.00 earnings season is a very welcome RITAIN’S top share index earnings. sign,” said Jack Ablin, chief invest- rebounded from a three-session “I am quite sceptical on China in the ment officer of Harris Private Bank in Bslide yesterday as a rise in long term. There’s clearly been an asset 3 Apr 4 Apr 5 Apr 10Apr 11 Apr Chicago. “That said, we’re going to get banking stocks following a bubble but in the short term its unlike- a broad sense of how industries are positive broker comment and gains in ly that Chinese growth will greatly dis- BT GROUP faring this week, and we may trade mining shares boosted the index. appoint and they’ve got scope for fiscal JP Morgan Cazenove has downgraded the telecoms group from sideways until we get that.” The FTSE 100 index closed up 39.19 stimulus,” said Ewen Stewart, UK “overweight” to “neutral” following a strong share price performance that On Tuesday, the S&P 500 closed points, or 0.7 per cent at 5,634.74, strategist at Investec. has seen it rise by 20 per cent over six months, compared to a drop of five below its 50-day moving average for reversing a downward spiral when the Miners drew some support from bet- per cent across the European telecoms sector. The broker sees revenue risk the first time since December, and index surrendered almost all its ter than expected first-quarter num- in both the full year and first quarter results, and though it remains positive yesterday the level provided technical remaining 2012 gains after it fell 2.2 bers overnight from Alcoa, which in the long term, it sees a regulatory drag in the Openreach business that resistance to its rebound. The S&P’s per cent on Tuesday, its second biggest kicked off the US earnings season. may lead to revenue guidance being reduced at next month’s results. 50-day moving average is now near percentage fall of the year. BT Group shed 2.5 per cent as 1,373, close to yesterday’s session The index dipped briefly below the JPMorgan cut its rating on the tele- Barclays PLC 212.10 high. 200-day moving average around the coms firm to “neutral” from “over- p 11 Apr Google, JP Morgan Chase and Wells 5,695 level, which is also near 2012 weight” on valuation grounds, while 245 Fargo are among the companies slat- lows, before bouncing back. also citing concerns over its revenue 240 ed to report later this week. 235 “This appears to be a normal trading and dividend outlook. 230 The Dow Jones industrial average bounce following a selloff mainly driv- “We remain positive on a longer-term 225 rose 89.46 points, or 0.70 per cent, to en by bargain hunting and short cover- view, [but] regulatory drags in 220 12,805.39 at the close. The Standard & ing. Current downtrends remain Openreach from April may contribute 215 Poor’s 500 Index gained 10.12 points, intact,” a London-based trader said. to 12/13 revenue guidance being 210 or 0.74 per cent, to 1,368.71. The Investor unease is reflected in the reduced at the FY results on 10 May, Nasdaq Composite Index advanced FTSE 100 Volatility index, which has while hopes for a dividend ‘hike’ may 3 Apr 4 Apr 5 Apr 10Apr 11 Apr 25.24 points, or 0.84 per cent, to leapt more than 50 per cent since 3 be disappointed,” JPMorgan said. 3,016.46. April on concerns about global growth Drugmaker Shire was 2.4 per cent BARCLAYS The US economy kept growing mod- and Europe’s debt crisis. lower partly because of its defensive Investec has upgraded the bank from “hold” to “buy” with an unchanged erately in the late winter months, “People are looking out for short attributes, but also with traders citing target price of 240p, despite the shares having fallen by 20 per cent since 2 although rising gas prices were begin- term gains for the moment,” said Dean fading bid hopes after Germany’s March. This is partly due to shares in Blackrock, which is 19.7 per cent owned ning to worry producers and con- Stevens a trader at Galvan. Bayer, one of a number of possible suit- by Barclays, closing at a near one-month high at the end of last month. sumers across the country, the Banking stocks, one of the largest ors, failed to mention acquisition However, the broker still sees weakness in its return on equity outlook. Federal Reserve said in its latest “Beige components of the FTSE index, moves in its recent update. Book” summary of national activity. rebounded yesterday after HSBC raised European stocks also ended higher, British Sky Broadcasting Group PLC This assessment had little impact on its call on the sector to “overweight” halting a week-long slide as recently 649.00 equities. p 11 Apr for the first time in four years, citing battered banks rallied, although the 690 Glass container maker Owens valuation grounds. rebound was seen as technical and 680 Illinois surged 6.9 per cent a day after This pushed up the FTSE, with could be short-lived, with investors 670 the company forecast a 35 per cent Barclays, Lloyds, and RBS all making bracing for Italy’s bond auction expect- 660 rise in its first-quarter profit. gains of more than two per cent. ed today. 650 In contrast, the US-listed shares of Hargreaves Lansdown was the top 640 Nokia tumbled 15.7 per cent after the rise, gaining 3.8 per cent. FTSE 630 mobile phone maker warned its The cyclical mining sector also phone business would post losses in 5,900 5,634.74 3 Apr 4 Apr 5 Apr 10Apr 11 Apr propped up the index, with silver pro- 11 Apr the first two quarters this year, as it ducer Fresnillo leading gains by revers- 5,850 struggles to revamp its product line. ing a five-week slide with a 3.4 per cent BSKYB Volume was light, with about 6.31bn 5,800 jump, outstripping near two per cent Bank of America Merrill Lynch has downgraded its recommendation on the shares traded on the New York Stock gains from Vedanta Resources and 5,750 pay-TV provider to “underperform” , lowered its price target to 640p and Exchange, the American Stock Kazakhmys. 5,700 reduced its longer term earnings forecast by 20 per cent. The broker blamed Exchange and the Nasdaq, below last Investors came rushing back in on a less favourable subscriber mix and erosion of gross margins for the year’s daily average of 7.84bn. the dips with the sector up 1.7 per cent 5,650 downgrade, saying the two combined would more than offset the benefit of More than three-fourths of the having shed 10.3 per cent over the past 5,600 lower broadband wholesale fees as was recently announced by Ofcom. stocks traded on both the New York month as worries over China growth However, it remains confident that Sky management will adopt the right Stock Exchange and the Nasdaq have crimped the outlook for sector 3 Apr 4 Apr 5 Apr 10 Apr 11 Apr strategy to maximise valuation “under any given scenario”. closed higher. THURSDAY 12 APRIL 2012 cityam.com MARKETS 21

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THEFORUM In association with cityam.com/forum I value the City: EU commissioner responds to criticisms by City A.M. WOULD like to respond to Syed This is in the interest of all market ed. On a wider point about how we and continue to listen and engage Kamall’s article in City A.M. last participants so they benefit from a work, contrary to statements made, with all stakeholders. Blaming the Tuesday on the European level playing field. the European Commission is Commission for rules agreed by both I Commission’s draft measures to Let me mention a couple of specific accountable. We answer to the member states and the European implement the EU directive on points which have been miscon- European Parliament, and to the EU’s Parliament is easy and common prac- alternative investment fund strued: the draft measures do not member states. They have the power tice, but it does not do justice to the managers (AIFMD) [The EC is now run include any provisions that would to reject any implementing measures real state of affairs. by City-sceptics: An insider’s view]. MICHEL BARNIER make it harder for managers to use we put forward. We are also answer- As EU commissioner responsible for The issue at stake is a European leverage. This was not foreseen in the able to the European Court of Justice, the single market, I have a duty to directive on alternative investment the law work in practice. AIFMD, and can therefore not be where the legality of any of these promote financial stability, and to funds, adopted by European legisla- The measures we are developing introduced now. Implementing meas- protect investors. We can’t allow tors in 2010, following a clear call will be in full respect of the agree- ures cannot alter the substance of another Madoff affair to happen. The from G20 leaders to improve the regu- ment reached to ensure financial sta- what was originally agreed. If you The City of London EU’s financial market needs a strong latory framework for hedge funds bility and investor protection, while want to change that, you need to ‘ regulatory framework in place for and other investment funds. An over- at the same time maintaining effi- change the original directive. is essential to Europe’s hedge funds and private equity, to whelming majority of MEPs voted in cient and open financial markets in What has been suggested are clear boost investor confidence. This can favour of it and EU member states, the EU. These measures are still work and operational transparency rules economy: it’s one of only benefit Europe’s financial cen- including the UK, unanimously in progress and no final decisions on the use of leverage. The imple- tres, in particular the City. agreed on the text. have been taken. menting measures specify the meth- Europe’s key assets A strong and healthy EU financial What the European Commission is Europe’s Securities and Markets ods of how leverage will be services market needs a strong City. doing today is developing implement- Authority (Esma) has provided calculated, and the frequency with That is why I care about the interests ing measures – technical details on extremely useful technical advice to which the extent of leverage has to be measures can be challenged. of the City. The City of London is the who, what, how and when of put- the Commission. Contrary to what I reported. I also dispute assertions made that essential to the European economy: ting this legislation into practice. have read in some papers, the On the issue of liability, the meas- the European Commission is run by it is one of Europe’s key assets on the In no way are we trying to call into Commission has largely followed ures we propose will not go beyond City-sceptics. We have had hundreds global stage. I need your input. I value question or alter the substance of the Esma’s advice. However, when draft- what is already stated in the AIFMD, of meetings with industry represen- it. It is only by working together that political agreement reached two ing legislation, the Commission must in terms of the custodian remaining tatives in this area. And it is only we can put Europe back on the path years ago. This is not the time to re- translate technical recommendations liable for the loss of financial instru- right we should do so because we of to recovery. open battles that were settled then. into legal language which is suffi- ments that are lost by a third party to course need their input. And I can Michel Barnier is the European commis- Instead, the Commission is making ciently clear to ensure legal certainty. which the custody has been delegat- assure you that we will remain open sioner for internal market and services.

Agree? Disagree? Got a sharp comment? The Forum wants you to join the debate. Twitter: @cityamforum on the web: cityam.com/forum or by email: [email protected] Top responses will be reprinted in The Forum. Republican nominee seeks running mate: Should be loyal and able to swing YNDON Johnson claimed it 2016. The senator from South Dakota and that’s just with Republicans. Mexico governor Susana Martinez. For “was the worst thing that ever will have been one of the first names Although Louisiana governor Bobby write-offs, namely Santorum and happened to me.” John Nance THE WHITE on the list. Governor Bob McDonnell, Jindal was just re-elected by a land- Newt Gingrich, that ship sailed a long LGarner said it wasn’t “worth a who endorsed Romney in January, is slide, he often struggles to inspire time ago. They won’t be shortlisted. bucket of warm spit.” John HOUSE RACE constitutionally a lame duck; Virginia before the podium. However, his per- As Hubert H. Humphrey once Adams lamented it to be the “most governors are restricted to a single sonal story and astute grasp of policy observed, a vice president is the insignificant office that ever the four-year term. Nothing is holding will be noted. Senator Marco Rubio of President’s “choice in a political mar- invention of man contrived or his EWAN WATT him back. Florida, who despite his best efforts to riage, and he expects your absolute imagination conceived.” The vice Romney’s positive chemistry with distance himself from the ticket, will loyalty.” Thune and McDonnell have presidency has not always endeared congressman Paul Ryan was palpable only see speculation increase as the shown the very loyalty most candi- itself to America’s political hierarchy, tempered version of the latter. But in Wisconsin. Ryan has the slight dis- polls in his home state get tighter and dates will not forget during the but the prospect of being “a who? advantage of being from the House of the prospect of a Tampa convention course of a presidential race. That heartbeat away” tends to be too Governor Chris Christie and senator Representatives, but Romney keynote gets closer. His résumé, how- matters. But in the modern day, run- much to resist. John Thune were both widely tipped endorsed his budget plan and the tick- ever, is still pretty scant. ning mates seldom shift swing states Long before Rick Santorum’s conces- to run for the nomination, only to et would certainly excite the base. Other names will be thrown around, (or even win their own), let alone the sion, Mitt Romney will have drawn up endorse Romney late last year. Governor Nikki Haley recently particularly Indiana Governor Mitch overall outcome of the election. a shortlist of potential running mates Christie remains popular across the embarked on a book tour, usually a Daniels, Ohio senator Rob Portman, Romney will have to do that by him- to help him overcome Barack Obama party, but has unfinished business in not-so-subtle attempt to pursue higher and former Arkansas governor Mike self. and Joe Biden. The “veep” nominee New Jersey. Thune, on the other hand, office. But Haley is not even two years Huckabee, as will wild cards like Ewan Watt is a Washington DC-based tends to heal primary wounds or help has campaigned fervently for Romney into her first term and has consider- Kentucky senator Rand Paul, South consultant. You can follow him on mobilise the base. Romney needs a and is not up for re-election until able challenges in South Carolina – Carolina senator Jim DeMint and New @ewancwatt THURSDAY 12 APRIL 2012 23 The Forum is open for you to take part. Got a sharp comment on one of today’s columns? Do you have another subject you want to share your opinion on? We want to hear your views. email [email protected] or comment at cityam.com/forum RAPIDresponses Have sentences Flight risk Beenz there before for rioters been [Re: The economics of the airline industry [Re: Is Facebook’s purchase of Instagr.am ed to be spending by the next election. are sheer hell, yesterday] worth the money?, yesterday] At the moment though, the government is I’m surprised David Crow has chosen to As a former dot com bubblist, I can assure you spending far more than that, far more than lump me in with Vijay Malya (the Indian that, as far as social networks and games go, it can hope to raise in tax. In an attempt to entrepreneur behind Kingfisher Airlines) in we are fully inflated and detached from eco- close the gap, it is hiking some taxes to proportionate? his otherwise well observed critique of the nomic reality. Other than ludicrous prices, extremely high rates that seriously distort modern airline industry. As the largest there are two indicators to watch: one, com- behaviour. Just as more hedge funds will shareholder in easyJet I have, since 2008, panies with names designed around a web disappear if the difference between the been vocal in warning the airline industry of address. Mine was called Beenz. It would be amount they can keep after tax in the risk of acquiring unnecessary and costly comfortable alongside Zeebox, Flickr, and Switzerland and in Britain rises, more aircraft from its monopoly suppliers – Instagr.am. Two, these so-called growth com- smokers will buy dodgy cigarettes if they Boeing and Airbus. In the previous decade, panies become benchmarks for actual busi- can save more money relative to buying when the oil price was about half to one fifth nesses. This is the point where the shoeshine over the counter from an honest trader. of where it is today, it was possible to lower boy gives stock tips. Now I am running a real That will undermine how useful these prices and attract new passengers. But with business, with revenues, customers and an taxes are in achieving the politicians’ oil at $120 per barrel, average ticket prices actual listing, I am occasionally asked by fund objective of reducing the size of the have to cover these higher costs thereby managers why we aren’t growing at deficit. Pointing that out isn’t some kind of reducing passenger volumes on nearly Facebook rates. My reply, that we are a real ideological surrender. Tax evasion isn’t a every route. This must impact the bottom business whose customers are actually cus- victory for the free market. The likely line. As your correspondent correctly points tomers, never satisfies. This bubble will burst, result can easily be the rest of us paying YES NO out, recent history is littered with great like the last one. All it takes is one failed IPO, more. One of the benefits of lower, simpler airline failures. Many, if not all can be or a hot startup fails to raise its fifth round at a taxes is that it will encourage everyone to directly attributed to the buying of too 500x valuation on the one from the month pay their fair share, and end the poisonous many new aircraft only to find there are no before. My money is on Twitter going first. suspicion that everyone else isn’t, which Charles Cohen, Richard Harrington Andrew Neilson profitable routes left to serve. That is why I erodes the rule of law. I’d hope a fellow of chief executive of Probability the Cobden Centre, which claims to believe have repeatedly asked easyJet’s chairman LAST summer’s riots were SENTENCING after last year’s Mike Rake to publish the company’s in “honest money,” would appreciate the case for an honest tax system. unprecedented in scale, disorder London riots was ramped up amid profitability by aircraft. This he has Matthew Sinclair, and violence. The cause was a rush to justice. Many young consistently refused to do. Other airline No tax surrender director of the TaxPayers’ Alliance mindless, reckless vandalism and people had not committed a shareholders would be well advised to do the effect must be serious, effective violent offence, had never been in the same. They would then find they were sentencing. Gordon Thompson, trouble with the law before and better served – as managements would [Re: Maximising tax revenues is good for sentenced yesterday, committed a were still sent to prison. A student spend less with Boeing/Airbus and take politicians – but not the rest of us, yesterday] TOP TWEETS crime that destroyed the livelihood with no criminal record was jailed more care to maximise shareholder value. Jamie Whyte is absolutely right that the Unfortunately localist planning reforms are a of a longstanding company and for six months for stealing £3.50 Sir Stelios Haji-Ioannou, government shouldn’t be some kind of Nimbys’ charter and unlikely to increase hous- endangered lives. As a standalone worth of water. A mother of two, chairman of easyGroup predatory leviathan, with no objective but ing supply. crime this merits a long custodial who didn’t participate in the riots maximising its own revenue. But it is @JPWNews sentence and, as a crime but was handed one pair of stolen [Re: After many years in a bull market, is it bizarre that he thinks that is what the committed with seemingly no shorts afterwards, was given a five still a good time to stake your wealth on TaxPayers’ Alliance wants. The govern- Building on the countryside is not the only other motive than sheer month prison sentence. The courts gold?, Tuesday] ment should try to limit itself to the size option to our housing problem. There’s lots of vandalism, the sentence was placed great store on the deterrent I think these are two very different argu- that will maximise our overall welfare, redundant commercial property that could entirely appropriate. For crimes effect of such sentences but crime ments, answering entirely different ques- without compromising the economic change to residential. committed during riots, context is seldom the product of a rational tions. Trevor Greetham says that, as an growth that is the foundation of our future @KF_JamesRoberts must be taken into consideration choice. The fear of getting caught investment, gold is not particularly attractive welfare, or our economic liberty to spend during sentencing. These is more likely to deter than the our own money on our own priorities. Glad to see that the London rioter has been circumstances necessitate different length of the sentence. For those at the moment. Tom Clougherty is identify- punishments than may be given to convicted and sent to prison, spells ing the long-term problems with fiat money. There have been academic studies looking brought to justice. 11 years in prison for destroy- at both the welfare-maximising and the the same crime on another day. inside increase the likelihood of Both of these views are correct, it seems to ing a listed building in Croydon. Sentences that properly punish reoffending. Disproportionate me. I think a mainstream discussion about growth-maximising level of spending. @JohnHapps Obviously there are limits to that kind of those involved, and deter people sentences may simply fuel a sense fiat money against commodity-backed from acting like this again, are not of injustice and will not tackle the money is long overdue. As Clougherty says, study, and the results should be taken with Regarding the Gordon Thompson sentence: a pinch of salt. But they suggest spending vindictive, but vindication for the underlying causes of last year’s fiat money is the whole reason we had the there must be many victims of different crimes hundreds of innocent people riots. credit bubble in the first place. should be much lower than the 40 per cent feeling very hard done by. affected in Croydon and beyond. Andrew Neilson is director of Nick Heath or so of national income the state is expect- @MarkLoebell Richard Harrington is Conservative campaigns at the Howard League for MP for Watford. Penal Reform.

4th Floor, 33 Queen Street, Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor & Head of News David Crow Distribution helpline London, EC4R 1BR Business Features Editor Marc Sidwell | Lifestyle Editor Zoe Strimpel | Sports Editor Frank Dalleres If you have any comments about the Tel: 020 3201 8900 Art Director Pictures distribution of City A.M. Fax: 020 7248 2711 Gavin Billenness | Alice Hepple please ring 0207 015 1230, or email Email: [email protected] Commercial Sales Director Jeremy Slattery | Commercial Director Harry Owen | Head of Distribution Nick Owen [email protected] Editorial Statement: This newspaper adheres to the system of self-regulation overseen by the Press Complaints Commission. The PCC takes complaints about the editorial content of publications under the Editor’s Code of Practice, a copy of which can be found at www.pcc.org.uk Printed by Newsfax International, Beam Reach 5 Business Park, Marsh Way, Rainham, Essex, RM13 8RS CITYAM

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GETTY automaton.” “I wantto hireahuman,notan willunderstand.”they – Chapmanagrees interesting personinalanguage andtone “show whatmakes you them an play own their voice backatthem,” but organisation,”of the Varela says. “Don’t cultureandpersonality get asenseofthe “Dosomehomeworksector and orfirm. understand andappreciate tone the ofa writing passionately orconfidently.” instead of and saying confident, they’re into trap ofsaying passionate that they’re and to say. show than rather “People fall recommendations areto avoid passivity, much” to stand out,andherkey says “you don’treally needto dothat canserve well.distinction that them She ahallmarkof personality carries anyone injectinganelementof CVs canbe“lifeless documents,” and applying it’sacompetition.” for ajob,that “peopleforget, that when She thinks Writer, abusinesswritingconsultancy. weight, andputyour applicationatrisk. may just loseyour credibility, professional be overlooked. Buttoo muchofitandyou science. Too little, andyour suitabilitymay response to your application,isadelicate notice and,asaway ofprompting aquick asadetermination toseeking, both attract lack ofinterpersonal nous.” week ofdesperation andalsoa smacks shouldn’t becomepestering. Acalloncea nudge now and again canbeuseful,butit Chapman reiterates point.“A this little likely you have nothave beenshortlisted.” afewfrom anapplicationwithin days, itis eager follow ups.“Ifyou haven’t heard Stonewood cautionsagainst Partners, over- same asmaintainingit. elsewhere. Attracting attention isnotthe satisfying,atinterview itisworth or that whetted, heorshewillneedreassurance recruiter’s appetitebeginning. Oncethe is or aprofessionally crafted CVarejust the write it.” yourself saying itinaninterview, just re- Varela “ifyou that can’timagine warns knowledge. onpaper, Itmay lookfine but demonstrating practical examples ofthat shouldn’t beusedasaproxy for orrelevantknowledge.expertise Butit demonstrateand itcanoften hard-earned terminologyfor inanapplication industry This goesfor jargon,too. Thereisaplace ATTRACTION MAINTAINED An excellent andnoticeableCVwillalso Anelia Varela iscreative director atThe This last point is crucial. Attention-This last pointiscrucial. seniorconsultantat Trueman, Gary Of courseapersonalrecommendation Tom Welsh http://www.cityamcareers.com/job/6049 rience isdesirable butnotessential. wide-ranging role. Previous private equity expe- ACA, ACCA orCIMAqualifiedaccountant for a A midmarket private equity investor requires an Competitive CENTRAL LONDON MANAGEMENT ACCOUNTANT

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2,600 390 jobs intotal legal roles Over Over cityam.com THURSDAY 12 APRIL 2012 cityam.com Retrosun Red Square Frame Vintage 25 Dior Women Sunglasses, £150 my-wardrobe.com See the world through rose-tinted spectacles with these these retro-inspired sunglasses. Sporting a square frame and LIFE&STYLEFASHION oversized graduated-tone lenses, a further touch of pizzazz is added with small gold- tone details around the frame and nose bridge. Extremely cool.

Emporio Armani 9682 Aviator Men’s Sunglasses, £125, sunglassesshop.com Sporty but oh-so-fashionable, these classic aviator-style shades featured in the spring/summer 2012 runway shows. Super- comfortable and equally good for Linda Farrow Luxe Oversized strolling Mayfair or hitting the Round-Frame Women’s beach. Sunglasses, £303, net-a-porter.com Vintage: tick. 1970s: tick. Enormous frames: tick. Made for the adventurous fashionista, this Ray-Ban Black Folding 4105 oversized pair of shades is made Men’s Wayfarers, £125, with tortoiseshell acetate and my-wardrobe.com LIFE comes with an equally luxurious leather box to keep them safe. If you’re tired of all the aviator cool out there, try a classic with a bit of an update. These traditional Ray-Ban Wayfarers have a sneaky little feature, folding up at both THROUGH A the arms and the middle of the frame, condensing to fit in a tiny case that's perfect for stashing away in a pocket.

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TINTED LOVE: A SHADY PA ST BY ZOE STRIMPEL From Nero to Posh, a long love affair with sunnies ictoria Beckham’s image is accessories: belts, bags, shoes (even I blindness to worry about, had a began to be associated so Jersey. By the time I came of age, the defined by her bug-eyes – you own some shockers), I wouldn’t be particularly fetching answer to the blatantly with fashion. After kids (and I mean kids) were wearing Valmost forget they’re the effect seen dead in certain sunglasses sun: great wads of thick wood with all, what can be cooler than little round John Lennon-style specs of enormous pieces of plastic shapes. Anything small or narrow, for slits, to cut down on exposure. They needing to hide your eyes with multi-colour mirrors, or those and not simply part of her anatomy. example. look a bit like frog eyes, and so that people can’t Oakley style wraparound horrors (of Shades have become such a hallmark The precursors to modern shades weighed a good deal. recognise you? The arc which a nice version is featured above). of where you stand on the trend were all about effect. It’s said that the In the middle of the 18th lamps used in filming My first fashion sunglasses, by which I spectrum that it’s easy to forget that Roman emperor Nero liked to watch century, tinted specs began to could also give actors red mean expensive, were a pair of thin they have a purpose, and that is to gladiator fights through emeralds, to be used to correct sight eyes, another reason to tinted blue Chanels – along with every protect eyes against ultraviolet create a mirror effect. Shades made issues – but they were still hide them. other girl my age (I was 16, it was 1998), radiation (UV). from flat planes of smokey quartz not about either sun Inexpensive sunglasses that little CC at the temples was of They’re interesting, shades. Why are were used in China in the 12th century protection or in any way were massproduced for paramount importance. A month’s they so irresistable to anyone with to help protect the eyes from glare: connected with looking cool. the first time in 1929, savings’ worth, in fact. Now I’m an pretentions of trendiness? Whereas and they must have looked pretty It was in the 19th century, with the and sold on the beaches aviator girl, and shun a visible logo. How there is a lot of leeway with other radical. The Inuits, with snow- dawn of the film star, that sunnies of Atlantic City, New far the world has come. THURSDAY 12 APRIL 2012 26 LIFE&STYLE TECHNOLOGY cityam.com GEEK Introducing the $1bn app SPEAK STEVE DINNEEN Are games getting a little too clever? amers hate the debate about whether games are on a level with film and literature. People tend to use annoying G phrases like “transcend the genre,” implying that games are somehow intrinsically worse. You don’t hear theatre critics saying “why, that play was so good it could almost have been a novel”. Anyone who regularly plays games knows that they already hold their own – they are innovative and immersive and – crucially – they can adapt to the player, changing the experience depending on the way you play. But while this can be liberating, it also has its drawbacks. Every other title you pick up seems to have half a dozen endings, and the conclusion you get is often decided by a series of clunky multiple- choice scenarios (“The woman is hanging from the cliff edge, press A to help her up or press B to cut her fingers off with a trowel”). Giving you the outcome you deserve sounds like a great idea. Did you go round laughing at old people and punching children? Then you get the bad ending. Go and sit in the corner and think about what you’ve done. Saved all the puppies? Great but you really need to play some more exciting games. The Silent Hill franchise is the benchmark of multiple endings. Its second installment, released in 2001, was groundbreaking. It saw your character slowly awaken to the horrible realisation that he murdered his wife, and the eponymous ghost-town was some kind of Freudian Purgatory. It was a classic twist – simple but powerful. There were six different endings but they were variations on that theme. In the latest Silent Hill, Downpour, your actions make the game turn out in wildly different ways – there is no single twist, just a collection of opposing, mutually exclusive ideas. Rather than make the game more personal, it felt sloppy. Something similar can be said of (otherwise brilliant) titles like Bioshock or Fallout 3. The games industry has always suffered from not really knowing what to do with endings – they usually take the form of a cut-scene rather than playable action and are more often than not a bit of an anti-climax (with a few notable exceptions). Making more endings isn’t necessarily the solution – one good one would be better. What is Instagram? indomitable lead in the social network stakes. The idea isn’t distinct to gaming – the inclusion of It is an app, previously available for free on the Facebook says Instagram alternate endings on DVDs (I Am Legend and iPhone and iPad but this week expanding to But $1bn? Really? Paranormal Activity spring to mind) is a sure-fire way Google’s Android platform, that allows people to is worth $1bn. But what It seems expensive but Instagram was one of the to boost movie sales. But they are an optional bonus share photos with their “friends” online. It few firms that was better than Facebook at its rather than a necessary part of the experience. works a bit like a specialist Facebook, allowing core business: letting people share photographs. The crux is, multiple endings can get in the way of a you to post pictures to your profile, which are vis- is it? By Steve Dinneen It may not make any money – it doesn’t current- good story. Even the most free-wheeling, immersive ible to people you choose to connect with. ly place adverts and is free to download – but the sand-box game (usually) needs some over-arching Demographic information is difficult to come value to Facebook is in staying at the head of the narrative to keep your attention. Classic games, ones What’s the big deal? by but anecdotal evidence suggests a high field and subsuming a rival before it has a that people will be talking about in 20 years, tend to Instagram is part of a craze for vintage concentration of users in the 25-40 age bracket, chance to become dangerous. Sceptics, of course, be those with a clear vision – and a great finale. Like photography. The app lets you apply various the vast majority of whom are iPhone users argue that $1bn is a crazy price, indicative of a the moment at the end of 1989’s Future Wars when filters to your phone snaps to make them look (although this will inevitably shift with the second dotcom bubble. Time will tell. you discover you were responsible for sending back like Polaroid shots. It’s amazing what a sepia release of the Android app), all of which is good How will it change now? the meteor that wiped out the dinosaurs, indirectly wash can do for a photograph. news for Facebook’s advertisers – if they are bringing about your own existence (thereby blowing allowed access to Instagram. That is debatable. Zuckerberg says he is “commit- Who uses it? ted to building and growing Instagram inde- the mind of seven-year-old me), or when you realise Well, it has between 20m and 35m users, What’s its USP? pendently”. So, in the short-term at least, users Link’s Awakening (1993) was all part of someone else’s depending who you believe, so quite a lot of Well… It doesn’t really have one. It just does what of the stand-alone app shouldn’t see too much dream. They wouldn’t have been the same if they way people. It is famous for being loved by hipsters, various other apps do, only better. If Facebook change. The question is: after Facebook has inte- you played changed the way things turned out. with one cynical tweet pondering how much can integrate its editing features into its plat- grated all of Instagram’s features, what will be Multiple endings have their place but sometimes it’s Mark Zuckerberg paid for every sepia form, which it inevitably will (otherwise why pay the benefit of maintaining an app with no clear best to keep it old-school. photograph of an empty coffee cup. $1bn for it?), it strengthens Zuckerberg’s already revenue model? Steve Dinneen is Deputy Lifestyle Editor of City A.M. WHO ELSE IS RIPE FOR A TAKEOVER? BY STEVE DINNEEN

Pinterest Tumblr Spotify Dropbox All eyes have now shifted to picture-sharing site Pinterest, If Instagram is worth $1bn, blogging site Tumblr could Things looked a little shaky for the music-streaming serv- The incredibly useful cloud storage site will certainly be with some commentators saying the firm’s meteoric rise fetch an eye-watering sum. It is incredibly popular, host- ice for a while. However, after sealing a deal to launch in turning some Silicon Valley heads. It is one of those “how prompted Facebook’s Instagram bid. The female-oriented ing almost 50m blogs and attracting more than 14m the US and generating millions of new users by partner- did I live without it?” services and would integrate seam- site is slick and very addictive. unique hits a month. ing with Facebook, it looks very tempting right now. lessly with services from Google or Apple.

THURSDAY 12 APRIL 2012 28 TV & GAMES cityam.com

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16 12 10 35 29 18 10  30 19 SUDOKU KAKURO 28  15 11 Place the numbers from 1 to 9 in each empty cell so that 24 Fill the grid so that each  each row, each column and each 3x3 block contains all the 10 21 block adds up to the total 39 11 numbers from 1 to 9 to solve this tricky Sudoku puzzle.   in the box above or to the 12 21 4 left of it. 37 17     You can only use the 6 8 5   digits 1-9 and you must not 16 17 19 34 12 use the same digit twice in 14 38      a block. The same digit may 21 23 10 occur more than once in a   row or column, but it must 11 7  be in a separate block. 9 3 11  23 32      10 10    ACROSS DOWN 1 Woolly 1 Marriage partner (6)     mammals (5) 2 Inflated feeling of WORDWHEEL 5 Early form of personal worth (3)     U E modern jazz (3) 3 One-hundredths Using only the letters in the Wordwheel, you have 7 Groups containing of a pound (5)    ten minutes to find as many words as possible, A I one or more 4 Pale brown none of which may be plurals, foreign words or species (6) colour (5) proper nouns. Each word must be of three letters H 8 Aromatic, edible 5 Russian musical LAST ISSUE’S or more, all must contain the central letter and D N bulb (5) instrument (9) letters can only be used once in every word. There 10 Serious (5) 6 Gait (4) SOLUTIONS is at least one nine-letter word in the wheel. KAKURO S G 11 Heartfelt (7) 9 Deepest (9) QUICK CROSSWORD 14 Fawning in attitude 12 Strong-scented 8 4 3 221 3 or behaviour (7) 5 3 2 1 9 4 68 SUDOKU perennial herb (3) INDEX DESKS   16 9 5 7 8 1 2 8 9 Punctuation 13 Gender that refers to N R E E T   6 2 179 7 5 mark (5) inanimate objects (6) DELAY C WHO   I S MA L E R 71 8 5 369 7 17 Tip at an angle (5) 14 Beauty parlour (5)          ALTERED DRY 9 7 3 2 8 19 Single floor of 15 A ATE A   Adjust again after 4 5 362 1 6 1 WORDWHEEL a building (6) DYE PASS I NG 1 3 9 4172     an initial failure (5) O NA I L T A 20 2 7 9 6 1 2 4 3 The nine-letter word was          Consume food (3) 16 Hint (4) MAD D BOXES 21 E E L N E 5 9 8 7 8 4 9 7 PARODYING    Adult male 18 Strong washing SADLY HEARS 8625384   singing voice (5) solution (3) THURSDAY 12 APRIL 2012 cityam.com 29

THEPUNTER RACING TRADER BILL ESDAILE, OUR RACING EXPERT, PREVIEWS THE FIRST DAY OF AINTREE’S GRAND NATIONAL MEETING Grumeti can bounce back from Cheltenham defeat AINTREE’S prestigious three-day Grand National meeting gets underway this afternoon and it may be worth finding a GETTY TV just after 2pm to watch the remarkable Big Buck’s beat Sir Ken’s (one of the great Champion Hurdlers from the 1950s) unbeaten sequence of 16. Now, Paul Nicholls’ four-time World Hurdle winner is a best-priced 1/4 with Coral to make it 17 on the trot and cannot possibly be supported at that price. There will be those who will see this as an opportunity to make a 25 per cent investment on their money, but I won’t be one of them. A great gambler once told me that “if you’ve got the four, you don’t need the one”. Big Buck’s arguably turned in his most impressive ever performance when cantering to victory in this contest 12 months ago and it is very hard to envisage any other result. That said, there has been plenty of rain in the north-west and Robin Dickin’s RESTLESS HARRY looks a very attractive each-way bet at 25/1 with Paddy Power if more rain arrives. He’s never been out of the frame when the going has been ‘soft’ or heavier Robert Thornton rides Grumeti to win The williamhill.com Dovecote Novices' Hurdle Race at Kempton and his stable is in unbelievable form. The leading protagonists from last of work on Grumeti’s hurdling over the many miles on the clock and today’s trip month’s Triumph Hurdle at Cheltenham last few weeks. I cannot see Countrywide will take some getting now that the line up for the Matalan Anniversary Flame or Dodging Bullets beating him going has turned soft. Juvenile Hurdle (2.30pm) and I’m very again with a slicker round of jumping His biggest danger looks sure to be sweet on the chances of Alan King’s and he is a confident selection. stablemate and Ryanair Chase winner GRUMETI. The feature race of the opening day, Riverside Theatre. In fact, if the Jimmy He didn’t have the smoothest of the Betfred Bowl (3.05pm), looks wide- Nesbitt-owned eight-year-old does stay I Festival preparations and ran an open and I make Nicky Henderson’s think he’ll win easily. I’m just worried absolute cracker under the BURTON PORT a tentative selection at about the half-mile step up in distance circumstances. That run was all the 9/2 with Coral. Not only does the eight- and that may well catch both him and more impressive considering he’d year-old have the assistance of the Alan King’s Medermit out. Keep a close missed work in the build-up and didn’t in-form champion jockey AP McCoy, he eye on the weather, though, as it looks jump that well on the day. He quickened is also the only one of the leading sure to play a part in the outcome of up really impressively to lead at the last contenders guaranteed to stay the three most races. hurdle and looked all over the winner mile and one furlong trip. until being worn down by Countrywide The one worry is that he looked very n Pointers… Flame. one-paced in the Cheltenham Gold Cup RESTLESS HARRY e/w 2.00pm Aintree Alan King has his stable in great form in what was a pretty gruelling GRUMETI 2.30pm Aintree and I’m sure he would have done plenty encounter. However, he doesn’t have BURTON PORT 3.05pm Aintree Boxer Georg can land a punch in the Fox Hunters’ THE FIRST taste racegoers get of the kind of trip. He won well at Clonmel in backed from 20/1 into 9/1, and he Grand National fences at this year’s February and has relatively few miles on absolutely hammered his rivals. The meeting comes in the John Smith’s Fox the clock compared to a number of ground conditions will be very similar Hunters’ Chase at 3.40pm. Paul Nicholls these. Patrick Mullins gets on well with this afternoon and with only 3lb more to last won this race 10 years ago with him and he looks to have a solid chance carry he is worth backing each-way. Torduff Express and he saddles the likely of going one better than last year. The novice chase looks particularly favourite Gwanako who was pitting his The Matalan.co.uk Red Rum Handicap trappy and although the closing wits against Big Buck’s at this meeting Chase (4.15pm) is Aintree’s version of the handicap hurdle (5.25pm) is fiendishly last year. Grand Annual and a number who ran at difficult, it might be worth throwing a Andy Stewart’s nine-year-old is two Cheltenham reappear this afternoon. few quid at Donald McCain’s REINDEER from two in Hunter Chases and actually Nicky Henderson had a one-two last DIPPIN. Jockey bookings would suggest won the Topham over course and month and he will hope to repeat the that stablemate Son Of Flicka has a distance in 2008. However, he has fallen feat with Kid Cassidy and Tanks For better chance, but he had a hard race in plenty of times in the past and I’m happy That. I’d favour the former of that pair, the Coral Cup and has gone up in the to take him on at what is likely to be a but he’s likely to be short enough and weights. short price. I’m willing to look elsewhere. Reindeer Dippin finished second at Cloudy Lane surely needs a greater KUMBESHWAR has been a model of this meeting last year at 40/1 and he has stamina test, while it’s anyone’s guess consistency for Alan King in his first definitely improved for the step up to how much ability former World Hurdle season over fences. He finished a highly three miles. Henry Brooke takes off a and Arkle winner My Way De Solzen respectable third in the Grand Annual valuable 3lb and with conditions to suit, retains. The one who interests me is last time and gave Zarkandar a real race they should go pretty close. Willie Mullins’ BOXER GEORG who was in the Juvenile Hurdle at last year’s I will be at Aintree for the next three only just beaten by Baby Run in this meeting. Aintree seems to suit him and days so you can follow me on Twitter contest 12 months ago. He travelled this could be the day he lands his first @BillEsdaile for all my views. really strongly that day and even though big handicap over fences. he made a couple of slight mistakes, the I’m also going to have a saver on last n Pointers… fences really seemed to bring out the year’s winner SILK DRUM who is now BOXER GEORG e/w 3.40pm Aintree best in him. under the care of Dianne Sawyer having KUMBESHWAR 4.15pm Aintree The 10-year-old relishes soft ground formerly been with Howard Johnson. 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GETTY its top five, alongsideWorcestershire’s AlanRichardson andLancashire’s GlenChapple. cricket biblealsoincludesEnglandopenerAlastair Cook andall-rounder Tim Bresnan in Wisden’s Leading Cricketer intheWorld andoneofFive Cricketers oftheYear. The SRI LANKA batsmanKumar Sangakkara hasbecome thefirst manto benamedboth DUAL HONOURFOR SANGAKKARA

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Visit ticketmaster.co.uk THURSDAY 12APRIL2012 lessons for Indiatrip England mustretain store knowledge that away because howeverthat, they itisvitalthat made huge improvements. sameapproachandalso adopt the Strauss andAlastair Cooktriedto Jayawardene, whileopenersAndrew secondTestthe tribute to wasafine decider inColombo. wisedupfor the Galle, andfinally Testdisplay first inthe defeat in his wonderfully controlledbatting Jayawardene, hosts’ captain,and the No1 Testretain their team ranking. Test seriesagainst SriLankaand slow pitches intimeto draw two- the eventually how learned to copewith Pakistan attackinSaeedAjmal. what waseffectively aone-man againstpoor fromallconcerned, Emirates reallyin the inparticular displays the more problematic,with ofMontyPanesar.successful return wasreinforced bydepth the in strength attack,andthat terrific Whoever plays, Englandpossessa team bowling isin the department. once again how well-equipped the face Pakistan, andSriLankaproved reason to behappy. A The batsmendeserve creditfor in Trott’sperformance Jonathan watchedIt seemsthey Mahela Encouragingly for Flower, England The batting,however, proved far The tours to MiddleEast, to the the Englandcoachhasevery the summerahead, ponders the team’s winter campaign and S ANDY Flower surveys his COMMENT CRICKET Warwickshire. cricketer, captainandchairmanof Andy Lloyd isaformer EnglandTest has madearodfor hisown back. sensehe make bigscores,sointhat allowing himselfmorechancesto format butTests, other every thereby pressure hadhenotopted outof middle order. wellPietersen inthe andIanBellfit winning formula, whileKevin you would notwantto disturb that order. Trottissoeffective atNo3, so candidates top for aslotatthe ofthe arenoequallythere convincing job ifhecameinasskippernow, but hiscaptaincy. than greater threat hisroleasopenerisunder although to threat hispositionforthe now, year. endofthe India atthe slow, spin-friendly conditionsin facesimilarlyand apply itwhenthey England’s top ordermust retainit lesson isto anything beworth atall summer. the throughout Ifthe backonhomesoil surfaces willbeplaying different they onvery Strauss would beunderfarless Cook would doaperfectly good Strauss, meanwhile,hasstaved off ANDY LLOYD cityam.com THURSDAY 12 APRIL 2012 SPORT 31 IN BRIEF Van Persie rediscovers touch as Gunners Cash-strapped Wasps sign Jones n RUGBY UNION: Wasps have defied tighten grip on Champions League place their precarious financial situation by making four new signings, including Wales fly-half Stephen Jones. South PREMIER LEAGUE by Yossi Benayoun’s late strike Van Persie came into the match Africa No8 Ashley Johnson plus young swept the Gunners away from without a goal in four fixtures but props Phil Swainston and Will Taylor WOLVES...... 0 their rivals and nudged the West took just nine minutes to remedy will also join the club, who are urgently Midlanders closer to the drop. that, chipping an impudent seeking cash to ward off administration. ARSENAL...... 3 But having recovered from two penalty for his 34th of the season. awful runs and seen neighbours Walcott had won the spot-kick, Reds recall loan keeper Gulacsi Tottenham’s seemingly iron grip with Sebastien Bassong sent off, BY FRANK DALLERES on automatic Champions League and the winger hammered the n FOOTBALL: Liverpool have moved qualification slip, Wenger is in no next nail into the Wolves coffin quickly to ease their goalkeeping crisis ARSENAL manager Arsene Wenger mood to celebrate prematurely. just two minutes later, slotting in ahead of Saturday’s FA Cup semi-final is refusing to take third place in “I’m very happy we are in this after a one-two with Van Persie. against Everton by recalling rookie the Premier League for granted, position but I’m also very cautious Kevin Doyle tested visiting Peter Gulacsi from his loan spell at Hull. after a comfortable win at 10-man because some teams have been in goalkeeper Wojciech Szczesny’s Suspensions to first choice Pepe Reina basement club Wolves increased that position before,” he said. “We agility before Benayoun wrapped and No2 Alexander Doni left the Reds their cushion to five points. have come from very deep and to up an eighth win in nine, cutting with Brad Jones as their only senior Early goals from Robin van stay in this position we have to in from the right and drilling low stopper for the all-Merseyside clash. Walcott won a penalty and scored a goal Persie and Theo Walcott followed focus on our next game.” past Wayne Hennessy. Barton return boosts QPR’s survival bid

Buzsaky rifled in a superb long-range goal to seal Rangers’ third successive win at Loftus Road

thought the manner of his performance PREMIER LEAGUE and the goal really topped off an excel- ...... lent performance from the rest of the QPR 3 team.” SWANSEA...... 0 The win lifted QPR to 16th in the table, two points clear of Bolton, while also condemning Swansea to their fourth BY TOM ROBINSON defeat on the bounce. Skipper Barton broke the deadlock on QPR boss Mark Hughes hailed Joey the stroke of half-time, firing in a low Barton after the captain’s return drive after the Swansea defence had inspired Rangers to a third successive failed to deal with a teasing Adel Taarabt home win and lifted them out of the rel- free-kick. egation zone. Forward Mackie doubled the lead, Barton, rested at the weekend to avoid neatly turning to make room for a shot suspension, justified his recall with a that deflected off Angel Rangel, leaving goal that set Hughes’s men on the way Swansea goalkeeper Michel Vorm to a priceless three points in the battle stranded. Hungary midfielder Buzsaky for survival. sealed the win in style when he lashed Second-half goals from Jamie Mackie home a sumptuous 25-yard strike. and Akos Buzsaky completed a morale- boosting victory ahead of what looks set BOTTOM FIVE to be a fiercely contested run-in. “I think Joey did excellently,” Hughes TEAM PLD W D L F A PTS said. “I made the decision at the week- QPR 33 8 7 18 38 56 31 end to protect him as I couldn’t afford Wigan 33 7 10 16 31 57 31 him to take the risk of losing him if he got another booking. Bolton 32 9 2 21 36 65 29 “The positive of that was he came into Blackburn 33 7 7 19 45 70 28 the game really fresh and raring to go. I think we benefited from that and I Wolves 33 5 7 21 34 73 22 32 THURSDAY 12 APRIL 2012

QPR take another stride towards top-flight survival with third consecutive home SPORTcityam.com/sport win: Page 31 Tevez takes stage as City breathe life into title race Blues boss Mancini insists fightback has PREMIER LEAGUE MANCHESTER UNITED...... 0 come too late despite United’s wobble WIGAN ATHLETIC...... 1 offered reasoning for his forecast. PREMIER LEAGUE “I think they have fantastic spirit, BY TOM ROBINSON United,” he added. “We don’t have the MANCHESTER CITY ...... 4 same spirit and for this reason I think MANCHESTER United boss Sir WEST BROM...... 0 this is very difficult.” Alex Ferguson accused referee City’s slump had mirrored the dips Phil Dowd of getting key decisions in form of Silva and Aguero, and it wrong last night after seeing his BY FRANK DALLERES was the latter whose sixth-minute side’s Premier League lead cut to strike from 20 yards, after a typically five points. MANCHESTER City manager Roberto surging run, relaunched their title Winger Shaun Maloney’s long- Mancini insists last night’s dramatic challenge. range curler hauled struggling comeback in the Premier League The Argentina star had to wait 45 Wigan out of the bottom three, title race has come too late to stop minutes to add a second, darting although a number of contentious neighbours and arch-rivals onto a cushioned Samir Nasri calls also played a major part. Manchester United. through-ball before clinically side- United have themselves City roared back into form in footing across Ben Foster and into the benefited from controversial emphatic fashion with their first win far corner. decisions in recent weeks but in four games, which slashed A third goal killed the game and it Ferguson was quick to highlight United’s lead to five points with five seemed symbolic that it should come what he saw as injustices. games remaining, following the from Tevez, the man whose five- “I thought Phil Dowd had a champions’ shock defeat at strug- month dispute with City’s hierarchy disappointing game tonight and I gling Wigan. cast a shadow over even the sunniest don’t think he ever got to grips Striker Sergio Aguero netted twice of early-season results. with it really,” he said. “But that and fit-again David Silva also The rebel forward, eased back into doesn’t take away from the fact notched, but perhaps the most sig- the side since his fragile truce, opted that Wigan were the better team nificant scorer was Carlos Tevez, who for power from 12 yards after compa- and deserved to win.” registered his first goal of the season triot Aguero cut back, as if plunging a Both the corner that led to following a long self-imposed exile. detonator on United’s recent Wigan’s opener and a rejected Victory reignited a tussle for the unshakeable resolve. penalty appeal for a Maynor trophy that looked to have been Silva’s 65th-minute finish spoke of Figueroa handball left Ferguson snuffed out, and the gap could be long-lost joy flooding back into City’s visibly irate on the touchline. down to just two points when United play, the Spaniard gracefully lifting However, Wigan also had cause kick-off on Sunday, yet Mancini over Foster from an angle as United, a to complain after striker Victor wrote off the prospect of a sensation- few miles west in Wigan, strove in Moses’s first-half header was al comeback. vain for an equaliser. harshly disallowed for an “United are a fantastic team and I obstruction on United goalkeeper don’t think they can lose five points,” David de Gea by home captain he said. “For us it’s important we fin- TOP FOUR Gary Caldwell. ish this good season well. This is the TEAM PLD W D L F A PTS The Latics did finally go ahead – best season since 1968 and it’s impor- Man Utd 33 25 4 4 78 28 79 and climb to 17th place – shortly tant. I fight always, every day, and after the break, when a short also my team but I think it’s too late.” Man City 33 23 5 5 79 26 74 corner was played to Maloney, Mancini’s pessimism will be seen Arsenal 33 20 4 9 66 41 64 who unleashed a fine curled as kidology, an attempt to shift pres- effort from 20 yards past the sure away from his side, but he Tottenham 33 17 8 8 57 38 59 Tevez scored his first goal of the season as City cut United’s lead to five points outstretched reach of De Gea. Al Fayed in stinging attack on refs, FA and top flight chiefs

BY FRANK DALLERES of video technology, Fulham said, including QPR’s failure to huge impact and can have Advanced technology is available to avoid “increasing overturn Shaun Derry’s red card calamitous consequences,” said Al and it is evidently being used in FULHAM chairman Mohamed Al inconsistencies and blatant at Old Trafford and Fayed. “Referees are all too easily other sports.” Fayed has launched a stinging errors”. Manchester City striker influenced by the more powerful Wigan chairman Dave Whelan attack on the game’s lawmakers, The Craven Cottage chief urged Mario Balotelli’s clubs and individual owners joined Al Fayed in calling for the accusing referees of being the Premier League to “wake up” avoidance of further which calls into question the Premier League to implement influenced by big clubs and from its “coma”, highlighting in punishment for a high integrity of both them, and the video technology, if necessary questioning the integrity of both particular the controversial challenge on Arsenal’s governing body they report to. breaking ranks with world the Football Association and the decision to deny his club a penalty Alex Song. “It is time for the Premier governing body Fifa. Premier League. in last month’s 1-0 defeat at “The losses that we League to wake up. They have Chelsea, meanwhile, have Al Fayed has written to both Manchester United, when Michael incur from such careless been in a coma for a appealed defender Branislav bodies demanding “an immediate Carrick appeared to trip Danny decisions have a long time. Lots of Ivanovic’s violent conduct charge review of refereeing practices and Murphy. clubs are suffering from Saturday’s win over Wigan, the process of decision making” His rebuke also follows a series Big clubs influence from such stupid which carries a three-match ban. and arguing for the introduction of contentious calls this week, refs, says Al Fayed decisions. His case will be heard today.