BUSINESS WITH PERSONALITY SNOW BLOW FOR OSBORNE AS SQUABBLES ECONOMY SHRINKS LEADERS AND BANKERS SNIPE GDP TURNS SOUTH P2, P4 IN DAVOS P18-19 Issue 1,557 Thursday 26 January 2012 www.cityam.com FREE US HEDGIE FINED £7M OVER CITY SCANDAL ▲ FINANCIAL CRIME an insider, which would have made believe that this action is unjust and BY DAVID HELLIER him privy to inside information but inconsistent with the law and with prevent him from trading in the firm’s prior FSA enforcement precedent. THE FINANCIAL Services Authority yes- securities, but Einhorn refused. There “However, rather than continue an terday fined hedge fund Greenlight was then some discussion about the arduous fight, we have decided to put Capital and its owner, David Einhorn, matter before the conversation ended. this matter behind us and concentrate £7.2m for alleged insider trading in Within minutes of the conversation on managing our business.” connection with a £350m equity rais- closing, according to the FSA, Einhorn, In a 45 minute conference call last ing by Punch Taverns in 2009. who is well known for shorting night, an affronted but unapologetic Einhorn’s £3.6m share of the £7.2m Lehman before its collapse, gave Einhorn accused the FSA of conduct- fine is the second-largest ever imposed instruction for all of his 13.3 per cent ing a politically charged process. The by the UK regulator on an individual shareholding in Punch to be sold. FSA “wants to score a win against a for market abuse. City A.M. first approached Einhorn’s high profile US hedge fund”, he said. The FSA case hinged on a telephone public relations company in New York, He said that not one of the people conversation in June 2009 between Sard Verbinnen, on Monday to com- on the Punch call had said that any Einhorn and Punch Taverns’ chief ment on its client’s share dealings in inside information had been disclosed. executive Giles Thorley, Andrew Punch Taverns in 2009. It made no “There was no reason to think I was Osborne of Bank of America Merrill response until yesterday – after the restricted in any way,” he said. Lynch and three others just days FSA revealed Einhorn had been fined. The FSA’s investigation into ahead of the planned capital raising. Yesterday Einhorn, an outspoken Osborne, who quit Bank of America According to sources, Osborne activist shareholder who opposed the Merrill Lynch in December, is ongoing. asked Einhorn if he could make him Punch Taverns fundraising, said: “We ANALYSIS: P10-11 Greenlight’s owner David Einhorn says the fine is unjust Picture: GETTY Fed: We won’t increase ultra-low interest rates until late 2014

▲ US ECONOMY Markets rose on the “highly accom- Slowing global growth, falling busi- increasing the average maturity of its want no rise before 2015. BY TIM WALLACE modative” policy announcement, ness investment and the weak hous- bond holdings to push down long- However, not all analysts believe this buoyed by the promise of cheap ing market, combined with term interest rates further. new transparency is beneficial. THE GLOBAL economy is so weak and money for years to come. The Dow below-target inflation forecasts mean For the first time ever the outlook of “In the future it might regret this US growth so anaemic that interest Jones rose 0.38 per cent, the Standard there is room for further loosening, each member of the Federal Open decision to publish forecasts – at times rates are unlikely to rise until late & Poor’s 100 jumped 0.53 per cent, and the Fed said. Markets Committee was made public. the ability to surprise markets is 2014, the Federal Reserve announced gold broke the $1,700 mark, rising 2.14 As a result, Operation Twist will Two of the 17 members believe rates important,” argued Lombard Street last night. per cent in the day. continue, with the central bank should stay low until 2016, and three Research’s Dario Perkins. ▼ ▲ ▲ ▲ ▼ ▲ Certified Distribution FTSE 100 5,723.00 -28.90 DOW 12,758.85 +83.10 NASDAQ 2,818.31 +31.67 £/$ 1.57 +0.01 £/¤ 1.19 -0.01 ¤/$ 1.31 +0.01 28/11/11 till 01/01/12 is 92,879

Upgrade to Business Cass Full-time MBA Scholarship application deadline: 10 February 2012

www.cassmba.com 2 News CITYA.M. 26 JANUARY 2012 Coalition deeply confused on growth NEWS | IN BRIEF Senate starts HSBC investigation HSBC Holdings is being investigated for money-laundering by a US Senate panel, to encourage it to hire and invest in stantly criticised, told they are all and red tape that cripple the labour which could result in a congressional the UK, rather than accumulate cash abusing the system or lectured that market. Speeches on getting rid of hearing being scheduled within a matter and invest abroad; instead, we get their true market worth is far below health and safety excesses turn out to of months. While the focus of the probe incessant calls for wealth taxes, more that of a footballer. There are of course be about trivial tweaks. The Beecroft is not yet known, this is the latest in a green taxes, more restrictions and red plenty of abuses and problems, some labour reforms have been diluted out string of banks exposed by US officials tape, all of which will merely convince of which are reported in today’s City of all recognition. Continuously hit- for managing transactions on behalf of businesses and entrepreneurs to sit on A.M. – but listening to the coalition ting the City while saddling manufac- countries believed to sustain corruption their hands. The 52p tax rate, seen and our political class, abuse is all that turing with expensive energy policies and criminal activity. Global banks have EDITOR’S LETTER internationally as a reason to avoid there is. That is utter tripe. and slapping an ill-thought out tax on forked out more than $1.2bn in penalties the UK, will stay indefinitely. The endless banker-bashing persists, North Sea oil and gas companies that since 2008 for violating anti-money ALLISTER HEATH It is of course right to tackle prob- even though the coalition desperately has led to a drop in production is stu- laundering regulations. lems (such as rewards for failure) but needs a reformed City to start grow- pid. No wonder it sometimes seems as IT is hard to understand what the wrong only to focus on these kinds of ing, hiring and exporting its services if the UK is being rebalanced – from Goldman’s London HQ to be sold coalition is playing at. Britain’s econo- matters or to constantly seek to out- again. The government should be pur- growth to stagnation. Chinese real estate investor Gaw Capital my is stagnating, GDP appears to have flank the Labour party from the left. suing a pro-market, anti-handout, pro- The Prime Minister’s speech to the Partners is in talks to buy Goldman shrunk in the last three months of How many more navel-grazing, pseu- competition and anti-corporatist Council of Europe yesterday calling Sachs' London HQ for about £300m in 2011 and yet the government exudes do-philosophical and pointless speech- policy – but doing that doesn’t mean for reform of the European Court of the latest deal underlining the safe haven no sense of emergency, no impression es about the nature of capitalism reinforcing anti-business prejudices or Human Rights was eloquent; it was appeal of the city's property market, a that it realises that we are in a nation- must we be subjected to? It’s madness: waging war on the very people who also pointless. Reform won’t happen. source said. Gaw, through its Downtown al crisis and that radical, drastic and people need jobs and growth, and need to be convinced to start investing The coalition thinks it is prioritis- Properties vehicle, is in the final stages of unpopular action must be taken. The these will only come from profit-mak- and hiring again. It’s a question of bal- ing growth. It isn’t – not even remote- talks to do the deal for the block on mood music remains deeply imbal- ing private companies. Yet listening to ance, of emphasis. ly. The spending squeeze is right and London's Fleet Street, the source familiar anced and dangerously anti-capitalist the rhetoric, the only kinds of busi- It’s also about real, tangible action, necessary, and must remain intact. with Gaw's plans said. The Peterborough and hence anti-growth; rhetoric mat- ness people the coalition like are rather than gimmicks, announced, re- Apart from that, the coalition needs to Court and Daniel House properties are let ters as it helps set the zeitgeist. What young, small wannabe entrepreneurs announced and re-re-announced. tear up its policies and start again. to the US bank until June 2026, and was is needed now more than anything (who are indeed great) – but all other There have been no substantial, epoch- [email protected] put on the market after former owner else is to kick-start the corporate sector (also very valuable) categories are con- defining changes to the regulations Follow me on Twitter: @allisterheath Jesta defaulted on debt repayments.

4th Floor, 33 Queen Street, London, EC4R 1BR Tel: 020 3201 8900 Fax: 020 7248 2711 Eurozone hit Email: [email protected] www.cityam.com Editorial Editor Allister Heath Deputy Editor David Hellier News Editor David Crow by debt woes Acting Night Editor Marion Dakers Business Features Editor Marc Sidwell Lifestyle Editor Zoe Strimpel ▲ EUROZONE ment official who negotiated the Sports Editor Frank Dalleres BY JULIAN HARRIS country’s bailout. Portugal may Art Director Gavin Billenness need a further €20-25bn in rescue Pictures Alice Hepple DEBT crises in Greece and Portugal funds to finance public companies, The IIF, led by Charles Dallara, is returning to Athens for talks Picture: REUTERS showed no signs of abating yester- Pina has said. Commercial day, yet elsewhere in the Eurozone Borrowing costs for the Yet the efforts of Greek authori- years,” he added. Sales Director Jeremy Slattery periphery Ireland successfully Portuguese authorities soared to a ties to negotiate a debt swap with The IIF – a body that represents Commercial Director Harry Owen accessed bond markets for the first Eurozone-era record high yesterday, private holders continue to drag on. private holders of Greek debt – said Head of Distribution Nick Owen time since its bailout. reflecting fears that the public Both sides confirmed that Charles yesterday that it is sending a team While Ireland’s government finances are not sustainable. Dallara, head of the Institute of of experts to Greece “to continue Distribution helpline appears to be recovering relatively Yields on three-year government International Finance (IIF), returns negotiations with the Greek govern- If you have any comments about the distribution of City A.M. Please ring 0207 015 1230, or email well since accepting an internation- bonds struck an eye-watering 19.4 to Athens today for yet another ment on legal and technical issues”. [email protected] al rescue package in 2010, Portugal per cent, while five-years reached attempt to kick-start the talks. The IIF is keen to “agree on all may need a further €30bn in EU and 18.8 per cent. “The government aims to com- outstanding legal and technical Editorial Statement IMF rescue funds, one of its chief Conversely, at an Irish bond swap, plete negotiations on the debt swap issues as soon as possible,” it says. This newspaper adheres to the system of business leaders said yesterday. fresh three-years were made avail- as early as this week,” said govern- As with the previous occasion self-regulation overseen by the Press Complaints “I’ll dare to say we have a credit able with a yield of just 5.15 per ment spokesman Pantelis Kapsis when talks broke down, the stick- Commission. The PCC takes complaints about the crunch... What is lacking is €30bn,” cent – designed to tempt holders of yesterday, remaining upbeat. ing point seems to remain the rate editorial content of publications under the Editor’s Code of Practice, a copy of which can be found at claimed Antonio Saraiva, head of bonds due for expiry in January “We are now in the most delicate of interest of new bonds. Private www.pcc.org.uk Portugal’s main industry confedera- 2014. In the end around 30 per cent phase of the negotiations to com- holders are said to be holding out Printed by Newsfax International, tion. of that debt was swapped for the plete the debt swap ... It is clear that on their “final offer” to accept new Beam Reach 5 Business Park, Saraiva’s call echoed an earlier new later-dated bonds, surprising what happens in the coming days bonds that pay out four per cent. Marsh Way, Rainham, Essex, RM13 8RS warning from Carlos Pina, a govern- on the up side. will affect the country’s course for MERKEL AT DAVOS: P18-19 WHAT THE OTHER PAPERS SAY THIS MORNING

national, would flee the country. THE SUNNY SIDE OF GLOBAL WARMING NORWEGIAN CARRIER AIMS HIGH FOR UK TELL US TO PAY MORE TAX AND WE O2 SHARED MOBILE NUMBERS WITH SANDISK PROFIT FALLS 42 PER CENT WITH 222 AIRCRAFT ORDERS A dire vision of violent storms, fatal WILL, SAYS BILLIONAIRE WEBSITES A day after electronics giant Apple Norwegian Air Shuttle plans to buy floods and shriveled crops is often A billionaire co-founder of one of the O2 has apologised for an error that reported record iPhone sales, SanDisk 222 new aircraft worth $21.1bn from predicted in reports on global warm- world’s biggest private equity funds shared users’ mobile phone numbers provided soft guidance that suggests Boeing and Airbus in a move that her- ing. But a gentler world of blueberry has challenged governments to set with the websites they visited. An the rest of the mobile industry isn't alds its ambition to become one of farms, shoals of plaice and fewer win- higher tax rates after backing Mitt experiment set up by Lewis Peckover, a doing as well. SanDisk – which makes Europe’s leading low-cost airlines. try deaths may also emerge as a result Romney over the low rate that the 28-year-old web systems administrator, flash memory for smartphones, Boeing secured its largest ever of the changing climate, according to Republican candidate paid on his called attention to the problem last tablets and other devices – forecast European deal through a firm order a UK government study published earnings. David Rubenstein, the man- night. Peckover showed that O2 was first-quarter revenue of $1.3bn to by the Oslo-based airline for 122 737 today. aging director of Carlyle Group, said providing websites with the mobile $1.35bn, below the $1.46bn expected narrow-body aircraft, worth $11.4bn the private equity industry would number of users who visited. by analysts. at list prices. EGYPTIANS URGE CIVILIAN RULE A “happily” pay more taxes but it was up YEAR ON FROM REVOLT to governments to enforce the level. CHANNEL 4 SET TO REPORT DEFICIT FOR XEROX FOURTH QUARTER PROFIT RISES MEGAUPLOAD FOUNDER DENIED BAIL The first commemoration of Egypt’s 2012 Xerox met its fourth quarter profit tar- Kim Dotcom, the founder of revolution became a massive politi- CITY SLICKER TURNS ITS SIGHTS ON The broadcaster will increase its spend- get with help from its services opera- Megaupload, the file-sharing website cised protest against the power of the GRAND OLD MAN OF STOCKBROKING ing on UK programmes from around tion, but the company indicated shut down last week in one of the armed forces that continue to lord. Cenkos Securities wants to merge with £360m in 2010 to nearly £450m, partly economic weakness, particularly in largest criminal copyright cases Hundreds of thousands of Egyptians Panmure Gordon, its blue-blooded funded from a £50m surplus generated Europe, will weigh on its business this brought by US authorities, will marched into central Cairo’s Tahrir rival broker. Cenkos, now run by the in 2010 and by reallocating money year. Xerox continues to win contracts remain in a New Zealand jail after his Square, the epicentre of last year’s 18- corporate financier Jimmy Durkin, which would have been spent on acqui- to outsource business’ technology and request for bail was refused. In a 20- day revolt, demanding an immediate has bypassed Panmure’s management sitions from overseas. Instead, the back-office functions. But its tradition- page written ruling, a judge in end to military rule and shouting slo- and directly approached QInvest, its remainder of the funding injection al printer-and-copier business is strug- Auckland said there was significant gans against the ruling Supreme biggest shareholder, with a proposal will come from Channel 4 reserves, gling to show growth, and weakness in risk that Mr Dotcom, a German Council of the Armed Forces. for a nil-premium all-share merger. leaving the broadcaster in deficit. the economy looms as a threat. CITYA.M. 26 JANUARY 2012 News 3 Lagarde: UK must cut deficit

▲ UK ECONOMY can slow down their fiscal consoli- cent positive to then two per cent dation efforts are very few, and I’m positive,” she said. BY JULIAN HARRIS afraid Britain is not in that particu- Earlier in the day the IMF warned THE BRITISH government has no lar group,” she told that global crude prices could rise as choice but to continue with plans to Channel 4 News. much as 30 per cent if Iran halts oil reduce its annual deficit, the head On a more upbeat exports as a result of US and of the International Monetary Fund note, Lagarde insist- European Union sanctions. (IMF) said last night. ed that the IMF If Iran halts exports to countries Former French finance minister expects Britain to without offsets from other sources Christine Lagarde (right) recently return to levels of it would likely trigger an “initial” recommended that some govern- growth that will help oil price jump of 20 to 30 per ments had scope to slow down aus- tackle rising unem- cent, or about $20 to $30 a terity measures in the face of strong ployment. “If you look barrel, the IMF said in its economic headwinds. at our forecast for 2012- first public comment on a But yesterday she stated that the 2013, we’re clearly see- possible Iranian oil supply UK is not one of them. “Those coun- ing an improvement disruption. Mark Zuckerberg is expected to take Facebook public by May Picture: REUTERS tries that have fiscal space and that going from 0.6 per FEARS OF UK SLUMP: P4 Rumours of a Facebook IPO on trade halt

▲ TECHNOLOGY before, in order to review its share- BY LAUREN DAVIDSON holder list – leading some to deny any link between this week’s move SPECULATION of an imminent pub- and the imminence of a flotation. lic offering from Facebook has been Rumours of an early-2012 public reignited by the social networking offering from the social networking company’s suspension of trading on site have been circulating vigorously the private secondary market. in recent months, sparked by expec- While deal-making will operate as tations that Facebook would reach normal, Facebook’s lawyers Fenwick the 500-shareholder limit for an & West will not approve transactions unlisted company by the end of last for the remainder of the business year and be required to publish its week. finances. Zuckerberg’s empire has said the The flotation, expected in May, move is to perform “shareholder could see Facebook attempt to raise record audits” and declined to com- $10bn (£6.4bn), leading to a company ment on the probability of a loom- valuation of $100bn. ing IPO. However Sharespost, a service Unlisted companies sometimes which facilitates trading on the sec- suspend secondary trading before ondary market, currently values going public or making a big Facebook at $74.3bn. announcement to prevent people A public offering in the next few buying or selling before others have weeks would coincide with the seen the new information. eighth anniversary of Facebook, Jive suspended trading before which Zuckerberg launched as floating in December last year. thefacebook.com on 4 February However, Groupon and Zynga, two 2004. other prominent tech IPOs from The company is thought to have 2011, did not. brought in around $4bn in revenues Facebook has suspended trading last year. Salmond sets terms for Scots independence vote ▲ POLITICS agree that Scotland should be an independent country?” SCOTTISH first minister Alex Independence would involve disen- Salmond claimed he could be leading tangling the complex financial sys- a sovereign nation by 2016 after set- tems that connect the two countries ting out details of a proposed inde- and allocating an appropriate share pendence referendum. of the UK’s national debt. The Scottish National Party (SNP) The SNP say Scotland would contin- leader chose Burns Night to defy ue to use sterling and rely on the David Cameron and announce his Bank of England as lender of last party’s plans for a vote in late 2014 on resort. This would give it little control the matter of dissolving the 304-year over interest rates. union with England. Recent polls indicate around 30–40 He also said that the referendum per cent of the Scottish electorate would ask a simple question: “Do you support independence. 4 Economics CITYA.M. 26 JANUARY 2012 Lending slows Fears of new as consumers slump after pay back more ▲ UK ECONOMY BANK lending continued to slow in December, but remains up on 2010’s figures according to data published GDP shrinks yesterday by the British Bankers’ Association (BBA). New mortgage lending hit £8.7bn Sir Mervyn King’s Bank will be watching GDP anxiously Picture: REUTERS in the month, 12 per cent higher than ▲ UK ECONOMY cent on the same period of 2011. in December of 2010 and the BY TIM WALLACE Healthcare led the rise as, despite a strongest month of 2011. budget freeze, the number of proce- CITY VIEWS: IS THE UK IN RECESSION? However, annual net growth in the GDP FELL in the final three months of dures increased. Interviews by Raymond Doherty sector slowed to just 1.5 per cent – its 2011, according to early estimates Meanwhile output in the distribu- lowest rate in the decade of available from the Office for National Statistics, tion, hotels and restaurants sector figures – largely thanks to rising published yesterday. declined 0.5 per cent in the quarter, repayments. Economic output appears to have though still expanded 0.7 per cent on Consumer credit shrank by 1.4 per declined by 0.2 per cent, with 40 per the year. BHARPT JOSHR | DENSIT RON TECHNOLOGY cent in 2011. After a £0.2bn fall in cent of available data analysed so far. Construction suffered a 0.5 per cent November, net lending held steady in Such a decline leaves GDP growth fall in output in the quarter, and the “I think we’ve been in a recession since the end of last year. I know from December – in part, analysts believe, for the whole of 2011 at 0.9 per cent. same fall compared with the fourth experience that most companies are only offering temporary or short term because of increased spending in the Prime Minister David Cameron quarter of 2010. contracts and they see the numbers.” run up to Christmas. blamed the Eurozone crisis and However, as it accounts for only “Consumer appetite for taking on squeezed household incomes for the around seven per cent of GDP it is not new borrowing is very low while decline, describing the figures as “dis- significant enough to impact on the DUNCAN MULGREW | METS LTD there is also a strong desire of many appointing” while attacking Labour’s overall economic growth figures. consumers to reduce their debt,” said demands for more spending. “We believe output is likely to “Personally our company is doing its best business in ten years, although we economist Howard Archer from IHS Opposition leader Ed Miliband hit decline in the first quarter of 2012, Global Insight. out at Cameron, describing him as “a which would mean the UK has re- are quite specialist. I know the housing industry is struggling which is “Consumers’ desire to get a tight byword for self-satisfied, smug compla- entered a technical recession,” said always a bad sign.” grip on their finances is clearly the cency” and urging him to abandon the Investec economist Philip Shaw. consequence of current heightened current deficit reduction plan on the “What is more important than the MATTHEW JOPP | SK TECHNOLO GIES concerns over the outlook for the basis that it was responsible for cut- ‘double dip or not’ debate is the broad economy and jobs.” ting growth and pushing up unem- shape of the economic outlook. Of Lending to non-financial business- ployment. course there is little clarity here, but “I work in the private development industry and we have actually seen es fell £2.3bn in the month, after a Manufacturing led the fall over the tentative signs towards a resolution of our numbers pick up compared to last 18 months, so I’m optimistic £0.4bn rise in November. The BBA three months, with output down 0.9 the Eurozone crisis help us to main- that we’re not in recession.” blamed weak demand for credit. per cent on the quarter and registering tain our central case of a shallow Meanwhile financial businesses cut no growth compared with the same upturn.” In association with RateSetter: A better way to Save and Borrow, Peer to Peer total debt by £3bn in the month, slow- period of 2010. ing from a £12.7bn decline in the pre- The mild winter months led to a fall ANALYSIS l Economic growth has tailed off www.RateSetter.com Customer Phoneline: 08442490115 vious month. in electricity and gas use, which fell 4.1 1.5 % q on q per cent on the month and 8.3 per 1 cent on the final quarter of 2010. 0.5 Services – which accounts for the 0 majority of GDP – held steady in the -0.5 quarter. -1 Within that headline figure, some -1.5 sectors expanded while others -2 declined. -2.5 Government output increased by 2008 2008 2009 2009 2010 2010 2011 2011 0.4 per cent in the quarter and 2.5 per Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 CITYA.M. 26 JANUARY 2012 Economics 5

Education* Holidays Cost£218,000: of raising the UK factories £71,780 £15,532 *does not include private school fees childrencost of raising jumps hit by woes Childcare Pocket Money tojust new one records child £62,099 £4,337 ▲ UK ECONOMY BY TIM WALLACE in Eurozone CHILDCARE, education and food Food Furniture costs have all hit parents’ pockets, pushing the cost of raising a child to new highs, according to a study pub- ▲ UK ECONOMY economy. The biggest missing link is £18,667 £3,373 lished today by Liverpool Victoria the stability fund, and the responsi- (LV). BY TIM WALLACE bility lies with politicians to boost The cost of raising a child until THE EUROZONE crisis hit manufac- that to over €1 trillion (£0.843 tril- they are 21 stands at £218,024, the turers in the final three months of lion) and ensure it can support Clothing Personal care research estimates. 2011, according to the CBI’s industri- Italy.” Education costs rose 5.1 per cent al trends survey published yester- The weak state of the manufactur- over the last year to £71,780. Over day. ing sector did not hit jobs, however, £40,000 comes from university costs Output stagnated, with a net bal- with a net balance of 11 per cent of £10,781 £1,143 and fees, and the remainder includes ance of just two per cent of firms firms increasing employment. school uniforms, bus fares and trips. reporting an expansion, and 15 per “This is in part due to employers’ Since the report was first carried cent reporting a fall in new orders – concerns over retaining skilled out in 2003, education costs have the first such drop in two years. staff,” said CBI economist Ian Other risen 120 per cent. Sentiment fell in the quarter with McCafferty. Food spending jumped four per a net balance of 25 per cent of firms “Also low wage settlements have cent in the year, and 25 per cent feeling less optimistic about busi- helped firms keep on more staff.” £13,761 since 2003, to £18,667, whilst child- ness conditions than they were care and babysitting now costs three months ago – a steep drop, ANALYSIS l Factory output has stagnated £62,099 – up 2.7 per cent on the year but slowing slightly on the 30 per % balance and 57 per cent since 2003. 30 reporting growth cent tracked in the previous quarter. 20 Hobbies & Toys In response to soaring costs, two- A net balance of 20 per cent are 10 thirds of parents are planning to also increasingly pessimistic about 0 seek out more low-price items in the year ahead. -10 £9,248 their weekly shop this year, while “The Eurozone crisis is the single -20 one-third are increasingly selling biggest factor dragging down manu- -30 items online and in car boot sales to Past 3 months facturing, which is a particularly -40 raise extra cash. -50 Next 3 months export-oriented sector,” said CBI -60 “Despite an uncertain economy boss John Cridland. Year 00 01 02 03 04 05 06 07 08 09 10 11 12 forcing more pressure on the budget, “A resolution would help the it’s clear parents don’t begrudge the Leisure TOTAL money they spend on children, and would rather do without themselves than radically cut back on what they £7,303 £218,024 can provide,” said LV’s Mark Jones. 6 News CITYA.M. 26 JANUARY 2012 Work on the Pinnacle halts again amid tenant drought BNY extends

▲ cult… The Pinnacle is a statement PROPERTY building, a very adventurous project, Y ARION AKERS its stay with B M D but how many possible tenants are prepared to make a statement like WORK HAS stopped on the Pinnacle that in the current climate?” said one skyscraper on Bishopsgate for a second property source, who declined to be time, as the developer struggles to named. find enough pre-let tenants. The £800m tower has already fallen Canary Wharf Construction officially halted last behind its original schedule and cur- week with the tower just seven storeys rently has a completion target of 2015. high. However, City sources say work The Pinnacle, if it is finished on time, had been very slow over recent will come to market more than a year months, making possible tenants after rival developments including ▲ £42.50 per square feet. more reluctant to consider the build- Land Securities’ Walkie Talkie tower PROPERTY The property firm, owned by ing. on Fenchurch Street and British BY KASMIRA JEFFORD Songbird Estates, has agreed a rent- Work first stopped last year, restart- Land’s Cheesegrater project. free period of 18 months from 1 ing in September after developer Arab Agents for the skyscrapers are com- BNY MELLON has decided to stay put January 2014. Investments secured a new tranche of peting for a dwindling number of at its offices in Canary Wharf with Richard Archer, head of leasing at funding from HSBC and HSH large tenants looking to pre-let a size- the US bank renewing its lease at Canary Wharf Group, said: “BNY Nordbank. able chunk of a tower. Schroders sus- One Canada Square for a further Mellon has been a highly valued ten- Arab had embarked on pended its search for up to eight years. ant at Canary Wharf for over 13 years a fresh capital drive in 250,000 The bank, which is leasing six and we are delighted that it has 2010 but failed to keep square feet floors at the top of the 50-storey sky- agreed to extend its occupation at construction work going, of office scraper, has signed a new term with Canary Wharf. This is another vote of BUSINESS WITH PERSONALITY as reported in City A.M. BUYING A HOME NEXT TO space in its landlord Canary Wharf Group, confidence in both Canary Wharf (below). A TOP STATE SCHOOL MPC RIFTDecember beginning 1 January 2014 at a rent of and London.” And now conditions BREAKS OUamid econom- One Canada Square is Britain’s Issue 1,272 Friday 26 November 2010FRIDAY PROPERTY SECTION POSEN ACCUSE on the funding requir- P25 BOE’S KING OFic uncertainty. ANALYSIS l Songbird Estates tallest operational building, but it is www.cityam.com POLITICAL BIAS ing a certain level of P Arab due to be knocked off its perch by the PINNACLE FRE p pre-let deals appear to Investments 118 Shard at London Bridge, which is due have kicked in again. APPEALS TO along with CB 117 to be completed this year. Around 10 per cent KEEP ICONIC Richard Ellis 116 111.00 Canary Wharf’s chief executive of the 945 foot-tall and Savills, the 115 25 Jan George Iacobescu also announced One Canada Square Pinnacle, also known TOWER ALIVE joint leasing 114 plans last week to radically expand is London’s tallest Amount of funding secur 113 as the Helter Skelter, ed: agents on the its east London estate after buying operational building Developer could be f £330m has reportedly been next year unless it can securorced to halt work 33% tower, were 112 out its partners in the Wood Wharf, a

▲ e extra funding let. EXCLUSIVE Funding will pa unavailable for 111 semi-derelict site next to Canary Picture: MICHA BY MARION DAKERS y for: bank might of three comple THE DEVELOPER of t can lock do fer a smaller loan if AI wn a pre-let deal f scraper is scr he Pinnacle sky- than 1 towers by listed f te floors ambling t 50,000 f or m funding t o secure extr AI’s managingeet. direct ore Pinnacle in an increasinglirms lea o avoid being f a ves the THEINER/CITY A.M cons comment yester- “The City leasing Affara said it made sense t Wharf, where it intends to build a mark truction on t orced to halt or Khalid et when it is ready f y cro 5% Arab Inv he 945-f its original inv earl wded estments (AI) hasoot m tower. o return t y 2013. or tenants in plea t o some accept t estors r ather th o “They’v market is diffi- f h ad he te e day. 19 Jan 20 Jan 23 Jan 24 Jan 25 Jan new office and residential district. CITYA.M. 26 JANUARY 2012 News 7 A tale of two property developers

BUILD it and they will come. That pay £42.50 per square foot from Second, that big financial institu- was the mantra which underpinned 2014, a higher rate of rent than it tions still need offices with very speculative developments during paid previously, we understand. This large floor plates such as One the boom years. These days it’s more suggests Canary Wharf Group is still Canada Square. Only Canary Wharf like “show me the tenants and I’ll pushing up rents, especially for its and a handful of City buildings can show you the money”. Without a most premium office space. provide this kind of space, meaning confirmed pre-let, it’s awfully diffi- So what do these two stories tell they will benefit enormously from cult for smaller developers to get us about the state of London’s com- squeezed supply when leases are funding, hence why work on the so- mercial property market? First, that renewed over the next few years. called Helter Skelter has stopped (see small-time developers such as Arab That bodes well for the story opposite). Investments, the group behind the Cheesegrater and Walkie-Talkie, but There was better news from Pinnacle, will struggle for the fore- makes it harder for the likes of the Canary Wharf Group, which con- seeable future. They are no match Walbrook and Cannon Place. vinced Bank of New York Mellon to for listed giants like British Land and stay on in its offices on the top six Land Securities, who can use exist- floors of 1 Canada Square (story also ing revenue streams to fund their BOTTOMLINE opposite). The Wall Street bank will development programmes. Analysis by David Crow

+      '()%'!() ) +' !+(

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

) !)-$,(!$%$%'() ,,, !)-%#%$%$ %+ *"'( %)

)%'!((*&&#!-)  !)-% %$%$ 8 News CITYA.M. 26 JANUARY 2012 3i spin-off still Citi cuts put upbeat despite London bank market gloom ▲ INVESTMENTS THE HEAD of 3i Infrastructure yester- day opened the way to spending more cash despite the chill gripping jobs at risk the deals market. Cressida Hogg, managing partner, said the firm is “developing the investment pipeline for the coming ▲ BANKING includes investment banking, private months”. It also said its portfolio is BY JAMES WATERSON equity and hedge fund operations – “performing well” and delivering a but has been disappointed by its per- Sir David Howard faces tough times as Charles Stanley’s chairman good yield. CITIGROUP is considering further formance. The firm reported a cash balance cuts to its securities and banking divi- Citi employs around 10,000 staff in of £136.2m. sion, raising the prospect of more London within a global workforce of The group, which is set to battle redundancies at its London offices. 266,000. The firm is currently in the Revenues fall 15 per cent institutional investors in the fight to The bank’s finance chief John process of laying off 5,000 employees buy Edinburgh airport from opera- Gerspach told investors that losses in worldwide, including several hun- tor BAA, is also working on the pro- the division were “disappointing and dred in the UK. curement process for the unacceptable” and that the firm is The bank could not confirm how at broker Charles Stanley government’s £6bn overhaul of the “not oblivious to the fact that our cost potential redundancies would affect Thameslink rail line. structure cannot be justified by our specific regions but it is almost cer- Yesterday in a statement for the current revenues”. tain that London would be affected. period from 1 October Hogg said her Gerspach also revealed that the ▲ FINANCIAL SERVICES ing the same period. firm is “currently focusing on bring- ANALYSIS l Citigroup division’s bonus pool had been BY JAMES WATERSON Charles Stanley blamed “reduced ing the Thameslink transaction to a reduced by $800m (£514m) in 2011. 29.96 bargain volumes caused by the poor financial close”. “We must either drive revenue US$ 25 Jan INVESTMENT manager Charles trading environment, euro uncertain- Last year the Department for growth and operating leverage or we 30.50 Stanley has suffered a drop in rev- ty and depressed UK economy” for Transport said the preferred bidder will have to restructure, cut capacity 30.00 enue from £32.2m to £27.3m for the the results but was keen to emphasise for the supply of new Thameslink and cut expenses,” he said in a confer- 29.50 three months to 31 December. that it had successfully retained trains will be 3i Infrastructure and ence call. “While this is not a decision 29.00 The 15.5 per cent decrease was £14.48bn of client funds, just down its partners Innisfree and Siements that we will make in haste, it is also 28.50 largely a result of low trade volumes, on the £14.5bn it managed in March Project Ventures. not a decision that we will delay in 28.00 which meant commission income fell 2011. Britain’s oldest private equity firm the name of long-term strategy,” from £16.6m to £10.6m. The firm had previously issued a 3i Group floated the infrastructure The firm spent $1bn during 2011 The firm managed to boost fee profit warning in October. Shares arm in 2007 and remains its invest- on rebuilding the unit – which 18 Jan 19 Jan 20 Jan 23Jan 24 Jan income by 5.8 per cent to £16.6m dur- closed down 2.39 per cent at 265p. ment adviser.

‘I, Richard Branson, am superfast. That’s why I’m doubling your broadband speeds and making the UK’s fastest broadband1 even faster.’

Find out when at virginmedia.com/doublespeed or pop in store. CITYA.M. 26 JANUARY 2012 News 9

FORMER LLOYDS BOSS ERIC DANIELS JOINS STORMHARBOUR

Bankers bid ERIC Daniels, the former group chief executive of Lloyds Banking Group, is joining StormHarbour as for €50m in principal and sen- ior adviser with immediate effect. Daniels, who retired from Lloyds a year ago, has the bonus battle highest profile yet of any of the profes- sionals that have joined the inde- ▲ BANKING ance, was a “moving of the goalposts”. pendent boutique The claim, against Dresdner investment bank, BY PETER EDWARDS Kleinwort and Commerzbank, now which was formed GERMAN investment bank Dresdner the parent firm, covers sums ranging early in 2009. Kleinwort scrapped plans to pay €50m from €15,000 to €2m which were due Picture: REX (£42m) in bonuses to its London to have been paid in January 2009. traders even though the City regulator Stefan Jentzsch, then chief executive had been “breathing down its neck” of Dresdner Kleinwort Investment over the loss of staff, a court has heard. Bank, said in 2008 the cash would be Bankers were jumping ship to paid “no matter what” as part of Goodwin’s gong under threat from civil Goldman Sachs, Citigroup and efforts to retain staff amid a re-organi- Unicredit/HVB and the Financial sation of Dresdner group. This had Services Authority had become con- sparked anxiety over job security, said cerned about the effect of a possible Hochhauser, who is representing 21 of servants as pressure grows on Hester disorderly breakdown of Dresdner the bankers. Kleinwort, as the markets worsened in Allianz – which owned Dresdner’s late 2008, it is alleged. investment bank before it was sold to ▲ BANKING Royal Bank of Scotland. City A.M. deferred. “The FSA, if I could put it colloquial- Commerzbank in January 2009 – understands, however, that a final Hester is entitled to a salary and BY PETER EDWARDS ly, were breathing down the bank’s feared a mass exodus of staff could decision will not be made for at least bonus of up to £7.6m, including up to neck to do something,” said Andrew have “disastrous consequences”. A KEY Whitehall committee will meet a fortnight. Goodwin was knighted in £4m in share-based payments, but Hochhauser QC yesterday. Commerzbank, which had to be this week to discuss whether Sir Fred 2004 for services to banking. this is unlikely because the bank’s A group of 104 former Dresdner bailed out by the German government Goodwin should be stripped of his Meanwhile Goodwin’s successor, stock closed at 26.75p last night – well bankers claim “binding and enforce- after buckling in the credit crisis, has knighthood, David Cameron has said. Stephen Hester, is expected to receive below the government’s break-even able contractual promises” mean they long argued that discretionary bonus- The Honours Forfeiture Committee a bonus of less than £1m. The govern- price of 51p. are owed €50m from a guaranteed es were dependent on the bank’s per- will consider “all of the evidence”, ment has put huge pressure on RBS The Treasury said no decision had minimum retention pool of €400m for formance and said it is mounting a the Prime Minister said yesterday. The and it is understood talks are contin- been made. Cameron has previously 2008. They say the introduction of a “vigorous” defence. Its rebuttal is evidence will include the FSA’s damn- uing. The Treasury has demanded the said RBS’s bonus pool will be lower clause to reflect worsening perform- expected to begin today. ing report on the near-collapse of bonus is paid entirely in shares and is this year. 10 Focus on insider scandal CITYA.M. 26 JANUARY 2012 How Project Beetle sent a City rain US fund manager scuttling ▲ REGULATION ly successful transaction, which one US hedge fund manager, their last year, has everything to do with a BY DAVID HELLIER included bankers from Bank of involvement in Beetle has had mas- conversation he was involved in dur- America Merrill Lynch (BAML) and sive repercussions. ing the marketing of the Punch PROJECT Beetle was the name used Goldman Sachs, and lawyers from On the website of the Financial Taverns fundraising, which yesterday for a £350m fund-raising in 2009 that Slaughter & May, had every reason to Services Authority (FSA) there is one led to a £7.2m fine for David Einhorn led to a critical reduction in Punch celebrate the deal and move on to the word alongside former BAML banker and his firm Greenlight Capital. Taverns’ £4bn debt pile. next. Andrew Osborne’s name: inactive. Opinions vary as to whether Those who worked on the ultimate- But for one investment banker and His inactivity, since December of Osborne, or Oz as he is affectionately known in the City, was just naive or unlucky in regard to Einhorn, a large investor in Punch Taverns. The FSA has spent months investi- gating events leading up to the 16 June public announcement of the Punch Taverns open offer and share placing. In particular investigators focused on a conversation that included Osborne, Einhorn, Jim White, then of Goldman Sachs, and the then Punch chief executive Giles Thorley, in the early part of June that year. As is usual, Osborne, as the compa- ny’s corporate broker, wanted Einhorn, a large shareholder in Punch, to be pre-warned about the imminent transaction so that he might support it. Unusually, when Osborne asked Einhorn whether he would “wall cross” (or become an insider to the issue, which would involve not buying or selling any shares in Punch for an agreed number of days), the American refused. Bankers said that this would have been an unusual situation and a diffi- cult one for Osborne to deal with. “99 times out of 100 a shareholder agrees to being made an insider, as long as you give them an idea how long they will be unable to trade for,” said a source yesterday. Friends say that Osborne then brought the conversation to a close but regulators appear to have judged that some information about the rights issue was indeed passed on to the hedge fund trader, albeit not deliberately. Einhorn is a confronta- tional character who famously shorted shares in Lehman Brothers ahead of its collapse and who pub- licly took on the bank’s then finance director Erin Callan, rightly suggesting Needing a that she was being too opti- shareholder vote of 75 per cent, Punch mistic about the bank. recorded a narrow victory of 75.1 per At one point Einhorn was Punch cent. Although the deal resulted in Taverns’ largest shareholder. However Punch’s share price falling 44p to ahead of the public announcement of 104p on 15 June, it was broadly wel- the fund-raising there were four sepa- comed in the City because of its stabil- rate announcements, all in June, ising influence on the group’s showing that he had reduced his stake long-term prospects. in the company. Osborne is expected to be given a The stake went from 13.3 per cent fine by the FSA, but he is said to be on 1 June to 8.98 per cent on 15 June, confident he will not be banned from the day the details of working in the City. Friends of the deal were the Welsh rugby-lover said announced to the last night he had been stock market. The approached by a number FSA said his deal- of banks who are inter- ings saved the ested in hiring him and funds losses of that he has been offered £5.8m. at least one non-execu- Greenlight and tive chairmanship. QVT became vigor- But they said he was ous opponents of the unlikely to take a new fund-raising deal and position until the their opposition near- whole FSA matter had ly led to it being voted been resolved and as of down. yesterday his dealings with the FSA were still Rainmaker: Andrew Osborne ongoing. quit BAML in December CITYA.M. 26 JANUARY 2012 Focus on insider scandal 11 maker and a

London N1

Wall crossing Computer generated image shown is indicative only. at centre of Phase 2: Canal Wharf FSA’s probe Launching 28th January ▲ REGULATION 1, 2 and 3 bedroom apartments THE PUNCH Taverns case hinges on the interpretation of a term used by now available from £250,000 KING’S CROSS investment bankers: wall crossing. 2.6 miles A company or one of its advisers ISLINGTON will ask a shareholder to wall cross The latest phase, Canal Wharf, 1 mile SHOREDITCH for the purposes of marketing a deal 0.7 miles features west-facing balconies with SOHO to them, like an acquisition or a 3 miles fund-raising. fantastic views: perfect for winding THE CITY If a shareholder agrees to be wall 1.8 miles crossed it means that they can not down when you get home. trade in the shares of the company MAYFAIR WATERLOO LONDON for a set period ahead of a transac- 4 miles 2.9 miles BRIDGE tion. VICTORIA 2.3 miles Journey times are 4 miles If a shareholder declines to be wall Floorplans available online approximate only. crossed, as in this case, an adviser www.tfl .gov.uk “should stop the conversation there at www.kingslandwharves.co.uk and then”, says Ruth Gevers, former- ly of the FSA’s market conduct team. The FSA said yesterday that a mat- Book your viewing today email ter of minutes after a telephone con- [email protected] versation had concluded with a corporate broker, Einhorn gave Call visit instructions to sell all of 0844 406 9299 www.kingslandwharves.co.uk Greenlight’s holding in Punch. At this point the advisers in the room had a responsibility to make a Suspicious Transactions Report to the FSA. Advisers on a deal, like Project MORE NEWS Beetle, also have an insiders’ list ONLINE AT which the FSA can ask for. @@ www.cityam.com 12 News CITYA.M. 26 JANUARY 2012 Strong food shop performance Pepsi adds fizz to has boosted jobs, retailers say Britvic after Irish ▲ UK ECONOMY additional jobs. ANALYSIS l Retail Employment BY TIM WALLACE Over the same period the number of retail outlets grew by one per cent. Quarterly change on previous year RETAIL employment rose in the final The rise marks a sharp turnaround 4 quarter of 2011 as food shops pros- from the 0.8 per cent decline in jobs in 3 drink sales decline 3.6%

pered, reversing declines seen in the the third quarter, year on year. 2.1%

2 1.9% previous six months, figures from the Employment by food retailers rose 1.6% British Retail Consortium (BRC) in each month of the final quarter. 1 ▲ 0.6% 0.5% 0.5% RETAIL - 0.4% showed yesterday. However, non-food shops appear to 0 - 0.8% and a 0.2 per cent dip in sales vol- The final three months of the year have hired temporary Christmas staff BY KASMIRA JEFFORD umes. saw a 0.5 per cent rise in retail employ- for shorter periods of time than in -1 BRITVIC shares enjoyed a 3.44 per The group said half of the sales ment compared with the same quar- 2010, to avoid the extra red tape result- Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 cent rise yesterday after the soft decline in Ireland stemmed from ter of 2010 – equivalent to 4,074 ing from new agency workers’ rules. 2009 10 10 10 10 11 11 11 11 drinks maker and distributor weakness at its wholesale business, reported a rise in revenues and big which distributes third-party market share gains for Pepsi, which brands to pubs and bars. it makes and distributes under Britvic’s stills division also deliv- licence in the UK. ered a weaker-than-expected per- The maker of Robinsons, Tango formance, with revenues declining and J2O said first quarter revenue by 1.7 per cent in the period. rose 2.5 per cent at constant As a result, analysts at Panmure exchange rates to £295.2m, driven Gordon downgraded their pre-tax by growth in its UK, French and forecasts for 2012 by £4m to £116m international division. for British still and by £6m to The FTSE 250 company’s carbon- £131m for the group’s Irish division. ated drinks division performed par- Chief executive Paul Moody said ticularly strongly, with a revenue in a statement: “We expect the gen- rise of 5.8 per cent driven by Pepsi, eral economic and trading environ- which Britvic said had ments to remain substantially grown its challenging but, despite share in the take-home this caution, we are con- cola market. fident in our ability to In France, where it deliver another solid set owns the Teisseire of results for the year brand, Britvic grew sales ahead, in line with our by 12.6 per cent after expectations.” increasing its share of The company is the syrups market. expanding in the US However, Britvic suf- where it will start man- fered a further slump in ufacturing its children’s its Irish business, where Fruit Shoot brand for it sells own-brand the first time. It also MiWadi and Ballygowan signed several deals, soft drinks. that will see it double Revenues fell 10 per its Fruit Shoot distribu- cent due to price cuts tion to six states. CITYA.M. 26 JANUARY 2012 News 13 Asda takes Kate Swann has been chief exec of Shop slump WH Smith since George brand fails to faze 2003. to Middle East ▲ RETAIL ASDA, the British arm of US retailer Wal-Mart, has signed a franchise deal with a Lebanon-based firm to take its WH Smith George budget fashion brand to the Middle East. The UK’s second largest supermar- ANALYST VIEWS: DID WH SMITH’S RESULTS ket said in a statement yesterday that ▲ RETAIL past seven years. MARK AN IMPROVEMENT? Interviews by Kasmira Jefford the Azadea Group, headquartered in BY KASMIRA JEFFORD She has also rebalanced WH Smith’s Beirut, would explore options for its high street and travel businesses and George label in the Middle East, with- WH SMITH cheered investors yesterday the firm’s mix of products away from out mentioning the location or the after the books and stationery retailer entertainment products such as CDs PHILIP DORGAN | PANMURE GORDON number of stores it intends to open. posted an improvement in profit mar- and DVDs, which now count for less Meanwhile, the group has also gins despite sales continuing to fall. than five per cent of its sales. Management has now successfully shifted the seasonality of the business, signed a second franchise deal with Chief executive Kate Swann said the “As a result of this, the months of but a break up looks unlikely in the short run and top line momentum is retailer SandpiperCI, based in the group had delivered a “resilient” per- November and December now repre- likely to remain subdued. We think shares currently lack a catalyst. Channel Islands, to open George out- formance in a challenging market sent less than half of annual group “ lets in both Jersey and Guernsey. after like-for-like sales fell five per cent profit compared to over 90 per cent of Last year, Asda announced its inten- for the 21 weeks to 21 January. group profit six years ago,” Swann ” tion to establish a small number of The FTSE 250 firm, which has 612 said. JOHN STEVENSON | PEEL HUNT pilot George stores, which it plans to high street shops and 561 in travel Shares rose 4.32 per cent to 554p. open in 2012. locations, said sales were hit by a lack George, which was launched 20 of strong titles this Christmas com- ANALYSIS l WH Smith WH Smith delivered Christmas trading in line with subdued like-for-like years ago, currently accounts for pared with last year, when Jamie’s 30- expectations... Valuation and yield remain attractive, although our “hold” around half of Asda’s general mer- p Minute Meals and Tony Blair’s 560 554 stance continues to reflect medium-term technology fears. chandise sales. The supermarket said 555 25 Jan “ biography flew off the shelves. 22.5m shoppers, or half of the UK pop- At its high street division, like-for- 550 ” ulation, have purchased an item from like sales fell six per cent as consumer 545 DAVID JEARY | INVESTEC George in the last year. confidence remained weak. 540 Last week Tesco signed a franchise Under Swann’s leadership, the com- 535 deal with Fawaz Abdulaziz Al Hokair & pany has been focusing on offsetting WH Smith delivered another solid Christmas trading update, with a small Co, the largest shopping mall owner in shrinking sales with higher margin 530 improvement in like-for-like sales...our £99m profit before tax forecast remains Saudi Arabia, as part of a move to turn products and cutting costs, which has unchanged, as does our Buy recommendation. its F&F clothing range into an interna- led to an increase in profits over the 19 Jan 20 Jan 23 Jan 24 Jan 25 Jan “ ” tional fashion brand.

CITYA.M. 26 JANUARY 2012 EDITED BY 15 HARRIET DENNYS Got A Story? Email [email protected] Follow The Capitalist The Capitalist on Twitter: @dennysharriet

Peter Barrett-Lennard of RBC Capital Markets, Tony Lowrie of Gervais Williams of MAM Funds, Andrew Buchanan of Kenmare, and Stephen Foss of RBC Capital Markets Octopus, and Katie Potts of Herald Investment Trust

(from left) Marcus Edwards-Jones of Range Resources, Shahrukh Khan of Oracle Coalfields, and Harry Stevenson of Pritchard CITY INVESTORS TAKE STOCK OF SMALL-CAP Friday nights SUCCESS STORIES at minster exchange

FORGET the FTSE 100 – it’s the compa- is entering a period of slower growth, nies further down the stock market and so we desperately need to bring just got better that will lift the country of recession, capital to our small businesses, says Grant Thornton partner Philip because these are the companies gen- Secrett, who last night called on the erating the best returns,” awards government to abolish stamp duty for judge Gervais Williams, the manag- Join us for an unrivalled night of unbridled decadence Aim- and Plus-listed firms. ing director of MAM Funds, told The and 1920’s hedonism. Live music, flapper hostesses, Secrett was addressing a roomful Capitalist between debates with pre- of the City’s small-cap businesses, senter Naga Munchetty of BBC World. giveaways, delicious canapés & cocktails. the fund managers that invest in “Many fund managers prefer to th them, and one large dinosaur skele- focus on the large companies – but Friday january 27 , ton at the Grant Thornton Quoted we are getting close to a turning 3rd, 10 th & 24th February from 5pm Company Awards at the Natural point where that will reverse.” History Museum. Joining Williams on the top table Never mind Davos were fellow judges Andrew Book a table to receive free cocktails & giveaways. – this was the “first Buchanan of Octopus essential event” of Investments, Andy Brough the business year, of Schroders (pictured left said organiser with Ishbel Macpherson, Vitesse Media, chairman of Speedy Hire), and the only and Giles Hargreave of one that Hargreave rewards Hale, who high-achiev- abstained ing listed from voting companies himself S ON: quoted Investor of FIND U south of the Year for . the FTSE his “consis- 350 down tent to Aim and returns” Plus. in small- Our new restaurant “The world cap stocks. is now open. Join us for lunch Mon-Wed before 16th Feb and GROUPON LISTS MILLION get 50% off your food bill Tables must be booked in advance. DOLLAR TRADER’S DEAL Please call 020 7283 2838 or email RESTAURANTS, holidays, cars – and programme which [email protected] now trading seminars. Today’s deal of teaches the art of the day on the internet coupon busi- building and ness Groupon is a 95 per cent dis- managing an count to £19.95 on the trading online stock academy run by the irrepressible portfolio. hedge fund manager Lex van Dam. Places for the To recap: van Dam (right) is the ex- internet tutori- Goldman banker who left to set up als are unlimited Hampstead Capital, before putting – and open to up $1m of his own money to let a “people who are group of amateurs lose two per cent dissatisfied with of that capital on the 2010 BBC the performance show Million Dollar Traders. of their financial www.ballsbrothers.co.uk That was still three per cent better adviser”. MINSTER PAVEMENT MINCING LANE EC3R 7PP LONDON than the “professionals” however, Everyone, in says van Dam, thanks to his five-step other words. 16 News CITYA.M. 26 JANUARY 2012 Boeing upbeat Roche offers over plane sales

▲ TRANSPORT BOEING said yesterday that a pension $5.7bn to buy expense larger than Wall Street had anticipated would weigh on its 2012 earnings, but it handed investors good news with expectations for increased aircraft deliveries this year. The world’s largest aerospace and gene business defence company reported fourth- quarter net profit of $1.4bn, com- pared with $1.2bn a year earlier. The company, which competes ▲ PHARMA It plans to commence a tender offer with Airbus for orders, said revenue BY HARRY BANKS because Illumina was not willing to had risen to $19.6bn and that it negotiate a transaction. expects to deliver 585 to 600 commer- ROCHE Holding is offering $5.7bn “Roche has made multiple efforts to cial airplanes in 2012. (£3.6bn) in cash to buy US gene engage with Illumina in order to reach sequencing company Illumina in an a negotiated transaction, but Illumina Roche boss Schwan said he will not raise his offer for Illumina Picture: REUTERS unfriendly takeover bid that marks a has been unwilling to participate in major move by the Swiss drugmaker substantive discussions,” it said. Netflix survives into the gene technology field. A deal would be financed from avail- MEET THE ADVISERS Gene sequencing is central to per- able cash and borrowings under its sonalised medicine, which allows sci- credit facilities and would not require Born in Austria, Schulz completed his disastrous year entists to predict a patient’s response new finance, Roche said. WILHELM MBA in the UK at Lancaster University, to a particular drug, both during clini- Illumina urged shareholders to take SCHULZ and worked as a ski instructor before ▲ cal practice and in drug trials. no action pending a recommendation climbing through the Citi ranks. TECHNOLOGY The current offer price is 18 per cent from the board. CITIGROUP Both Schulz and Hite worked on ONLINE streaming service Netflix above Illumina’s closing price on Roche’s $230m acquisition of hepatitis exceeded expectations for 2011 Tuesday and over 60 per cent above the ANALYSIS l Roche C specialist Anadys Pharmaceuticals in despite its market value crashing by level before rumours of a bid started, October last year. more than two thirds in October as CHF but analysts have said Roche might 160.00 ROCHE has turned to regular financial Greenhill’s healthcare team has previ- up to a million customers left the have to raise its offer to secure a deal. 167.50 25 Jan advisers Greenhill and Citigroup on its ously worked for Roche as the sole service in protest to hiked fees. Roche chief executive Severin bid for Illumina, having mandated both financial adviser on its 2009 acquisition While fourth-quarter net income Schwan said the company had no 165.00 houses on previous M&A transactions. of biotechnology company Genentech slid 13 per cent to $41m (£26.1m), intention of raising its offer. 162.50 Citi’s team on the deal includes its for $46.9bn after a lengthy pursuit. quarterly revenues were up by a third Basel-based Roche said it would global head of health care investment Illumina is being advised on the offer on the previous year to $876m. offer to buy Illumina’s shares for 160.00 banking – ex-Lehman Brothers employ- by Bank of America Merrill Lynch, and Netflix expects to see a loss of up to $44.50 each in cash. Roche currently ee Chris Hite – and Wilhelm Schulz, the Goldman Sachs. $118m in the coming quarter due to owns a very small number of Illumina bank’s head of European M&A. By Elizabeth Fournier its expansion to Latin America and shares, finance chief Alan Hippe said. 19 Jan 20 Jan 23 Jan 24 Jan 25 Jan the UK last year. BOOKMARK THISSAVING

BlackBerry® PlayBook™ 64GB

NOW £249 Was £329 SAVE £801

Geek Squad service plans available from £9.99 per month.

Call 0800 049 4448 or visit carphonewarehouse.com

All information is accurate at the time of going to print. Important: due to the fast moving nature of this market, all offers, prices and availability are subject to change. 1 Compared to price between 23/12/11 and 07/01/12.BlackBerry®ResearchinMotion®andrelatedtrademarks,namesandlogosarethepropertyofResearchinMotionandareregisteredand/orusedin the U.S. and other countries around the world. Used under license from Research in Motion Limited. All trademarks and copyrights are the property of their respectiveowners.

18 Focus on Davos CITYA.M. 26 JANUARY 2012 Merkel: don’t dumb down

Sustainable companies make a difference Picture: REUTERS the Eurozone SUSTAINABILITY IS us,” she said. DAVOS 2012 The issue of what powers the ECJ BY JULIET SAMUEL should have over erring nations has been a key sticking point in negotia- ABOUT MORE THAN EUROPE risks becoming little more tions over the Eurozone’s new “fiscal than an interesting holiday destina- compact”, with Germany supporting tion if less competitive countries do the most stringent legal framework. THE ENVIRONMENT not follow Germany’s example, And she appealed for patience from Chancellor Angela Merkel told a financial markets for Europe’s slow packed hall in Davos yesterday. political negotiations: “Please take the ANDREW MOSS Germany’s premier warned against long, drawn-out process with a certain levelling down in order to make the degree of acceptance,” she said. GROUP CHIEF EXECUTIVE, AVIVA Eurozone a coherent economic group. Berlin is also keen to keep non- “Do we wish coherence and consis- Eurozone nations at the table as a USTAINABILITY is a word that crops up in a lot of tency without ambition?” she counterweight to some less competi- the conversations going on at Davos. For many, it’s a demanded, saying that the continent tive countries in the euro. shorthand for environmentalism, but for us it has to risks embracing “the lowest common Merkel told delegates: “We have to Smean much more than that. Our relationships with denominator” if poorly performing be very careful this common union of customers can last for decades – running a sustainable busi- nations did not “follow those role the 27 remains a union”. But she ness is how we safeguard the financial futures of our 44m models” with high productivity – like added that the euro 17 would need to customers. Germany. “We will certainly be an embrace their own more integrated We know that we can only provide our customers with interesting place to take a holiday in state: “Do we dare more Europe? We’re prosperity and peace of mind if we act responsibly, sustain- but we will not be competitive.”. ready to be more European,” she said. ably and with integrity. Well-managed, responsible busi- During her opening address for the “There will have to be more integra- nesses will perform better and create more sustainable World Economic Forum Merkel also tion... we have to become used to the value over the long term. reitered Berlin’s view that Europe [European] Commission becoming We want our employees to be able to build a rewarding must embrace a system of harsh sanc- more and more like a government.” career with us. We want our customers to stay with us – tions for countries that do not keep a Then, turning to the hundreds of and recommend us to others. We want to be a responsible firm grip on their spending. top business leaders watching, she corporate citizen and make a lasting, positive contribution “If we break the rules, we’re ready to said: “And please don’t forget us when to society. All these approaches build sustainability into the have others bring legal action against you're thinking of investment.” heart of the business. Later this year at the Rio+20 summit, we’ll be leading a coalition of financial institutions, professional bodies, NGOs and investors in calling for agreement on a global conven- tion on corporate sustainability reporting. The idea is to get company boards to consider and report on the future Moynihan: crisis to leave scars sustainability of the firms they govern and thus encourage more responsible long-term approaches to investment. However, it isn’t enough just to talk to the financial com- ▲ munity. We also have to concern ourselves with the com- EUROZONE a few years ago. We know that and just going to get worse, not better. munities in which we live and work. Our international BY JULIET SAMUEL we’ve learned from that. We wear the Emerging economies cannot pull the Street to School programme aims to help children living scars [of the crisis] still today and will west out of this. [It’s a problem] having and working on the streets get back into some form of BANK chiefs will “wear the scars” of continue to wear them for the rest of an austerity strategy and not a growth education and training. We intend to help half a million the crisis for the rest of their lives, our careers. We understand that and strategy. It’s not going to help globali- children by 2015. Our employees have dedicated over Bank of America chief executive Brian we are trying to move forwards.” sation.” 30,000 volunteering hours to Street to School project Moynihan said during a debate on the He also said that large corporations She came under fire from Ben work. Here in the UK, where the issue of street children is “future of capitalism” yesterday. like BofA face a “huge challenge” to Verwaayen, chief executive of French often less acknowledged, our staff are helping deliver run- Moynihan had jumped to defend avoid stagnation and to adapt suffi- technology firm Alcatel-Lucent (owner away awareness and prevention lessons to young people. himself from the charge that the “old ciently. “Our job is to hustle [talent],” of Bell Labs), who responded: “When I In investments, insurance, as an employer and as a com- industries and institutions” are inca- he said. “These premises that get hear you make speeches saying ‘We pany, we think long term: we try to ensure there is sustain- pable of producing the necessary thrown out – that large companies are ready for solutions and if only the ability in everything we do. changes post-crisis. don’t innovate – we’ve got to think other side will do what we want, we Speaking for fellow bankers, he told that through.” will go back to what we were’ – we an audience member: “You should rest Also speaking was Sharan Burrow, won’t go back. What I’d like is a little assured that every one of our institu- head of the International Trade Union bit of perspective from your side, from DAVOS TWEETS tions is so different from what we ran Confederation, who warned: “This is the labour movement.”

@Noriel 7.05pm Today new/social media day for me in Davos at the WEF: meetings with Sean Parker, Randi Zuckenberg Mandelson surprised by political shift and CEOs/founders of Scribd and Mashable

@Wef 5.35pm to the right but says coalition will last Each one of us is made for goodness, even bankers - Archbishop Desmond Tutu @TheElders #WEF #Davos http://wef.ch/live ^ml ▲ WORLD ECONOMY coalition will last until they can leader Ed Miliband, saying that BY HARRY BANKS bear each other no longer, reclaiming the centre ground of pol- which, yes, will probably be a itics “is something Labour has to @DrGerardLyons 2.54pm THE COALITION will last out its intend- good four years.” think through”. Panel of nobel economists couldn't agree what had ed term to 2015, according to Labour But Mandelson said he was As for European politics, he gone wrong with economics. I would say not enough peer Peter Mandelson, although he puzzled by Europe’s politi- told the assembled business history and too much belief in models. added that it was “surprising” that the cal shift rightwards. executives that they should right, and not the left, has benefitted “[The right] are scor- not expect progress to be from the financial crisis. ing more points,” he as fast as markets want. @MichaelHewson 10.41am Mandelson was speaking at a break- said. “Capitalism is on “Does it have to move fast hosted by WPP chief executive Sir trial, but why is the at the speed of a snail?” #Merkel says "absolutely convinced" Europe will Martin Sorrell to discuss the shift in right benefitting from he said, versus the resolve crisis - doesn't say when though. European and American politics. this and not the left? “nanosecond” change Asked if the government will survive This is surprising.” in markets. “Yes. until 2015, he said: “The public are not He also had some Politics is like that. It in a mood to reject the coalition... The advice for Labour moves slowly.” In association CITYA.M. 26 JANUARY 2012 19 with Focus on Davos

ABOVE: Activists against the World Economic Forum held a protest with fake dog leashes yes- terday at the con- ference centre

MAIN PICTURE: German Chancellor Angela Merkel opened the forum with a note of caution over the Eurozone’s cur- rent negotiations over its future

Pictures: REUTERS

DAVOS DIARY by Juliet Samuel in Davos EVENTS

Lord Mandelson sounded off about “garlic-eating tax dodgers” at Sir Martin Sorrell’s breakfast, as the second day at Davos kicked off with political sniping and an amused room of top bankers.

IS Lord Mandelson missing the that German Chancellor Angela But HSBC chief executive limelight? The dark prince was Merkel remains popular – Stuart Gulliver had places to be: all over the forum like a rash yes- because she has avoided giving he was soon trying to sneak out terday, hot-footing it from one excessive hand-outs to “garlic-eat- via the kitchen. engagement to another. ing tax-dodgers in the south of Before any sign of sun was Europe”. showing through the thick snow- But there was one topic on Lord Mandelson said Angela clouds covering Davos yesterday, which he was most reluctant to Merkel had stayed firm on Mandy suited and booted for a hold forth. “garlic-eating tax dodgers in breakfast hosted by WPP chief Direct as ever, Sir Martin men- the south of Europe”. executive Sir Martin Sorrell. tioned that some commentators Demonstrating the incisive haven’t been so kind about political nous for which the Mandy’s current party investment bank Lazard no doubt leader Ed Miliband. pays him a handsome advisory “Have they?” said the WHAT’S ON IN DAVOS TODAY London Olympics in the main congress fee, Mandelson offered his views dark prince nonchalant- hall. on topics ranging from the ly. “I’ve been travelling.” Russian President Dmitri Barclays chairman l 7.30am: HSBC’s wholesale banking l 12.30pm: Davos Open Forum on Medvedev – “weak, hasn’t really Marcus Agius doubled over chief Samir Assaf is hosting a break- responsible leadership in time of made a mark” – to the reason with laughter. fast on “the southern silk road: a crisis with former Israeli guide to 21st century eco- Prime Minister Ehud nomic growth”, featuring Barak, former UK panellists from the Prime Minister International Monetary Gordon Brown and Fund, the Brazilian former ECB presi- Cameron will use Davos platform to government and WSJ. dent Trichet, among others. l 10.30am: Gordon Brown will chair a l 10pm: lobby Brussels on burden of regulation debate with the presi- McKinsey will host dent of Guineau, Alpha a nightcap in the Condé, Nigerian presi- Belvedere Hotel dent Goodluck Jonathan until the small hours. ▲ REGULATION Cameron will make a “checklist” of to wait any longer. and South African presi- BY JULIET SAMUEL demands on continental govern- “Europe’s lack of competitiveness dent Jacob Zuma. l 10pm: The FT and ments. remains its Achilles Heel,” he will CNBC host a joint nightcap in PRIME Minister David Cameron will “Britain has been arguing for a pro- add. l 11.30am: Prime Minister David the Belvedere. up the ante with Europe today by business agenda in Europe. We need “The single market remains incom- Cameron will address the World demanding that Brussels impose tar- to be bolder still,” he will tell dele- plete... we are still doing things to Economic Forum on Europe's competi- l Events can be watched live online: gets to bring down the burden of EU gates gathered in Davos. “Here’s the make life even harder. In the name of tiveness and the failure of the Doha free http://www.livestream.com/worldeco- regulation on businesses. checklist: a target to reduce the over- social protection, the EU has promot- trade talks. nomicforum Just six weeks after vetoing an EU all burden of EU regulation. A new ed unnecessary measures that treaty because he could not get a sin- proportionality test to prevent need- impose burdens on businesses and l 11.55am: Mayor of London Boris l The official Twitter feed is @Davos gle concession from other leaders, less barriers to trade... we can’t afford governments.” Johnson will discuss the upcoming #WEF. 20 News CITYA.M. 26 JANUARY 2012 BEST OF THE BROKERS Government Ericsson sees ANALYSIS l PhosAgro OAO PHOSAGRO UBS has upgraded the London GDR listing $ loses its solar of the Russian fertiliser group from “sell” to 12 9.32 25 Jan “neutral” after a sell-off over the past cou- ple of months that has seen the stock lose panel appeal 11 nearly 30 per cent. The broker sees no rea- share price 10 son to change its 2012 estimates or price target of $9, despite a weak market outlook ▲ ENERGY 9 and unclear demand implying some down- THE SOLAR power industry has side risk. received a boost in the courts, after drop by 15pc Nov Dec Jan judges upheld a decision blocking the government’s attempts to cut solar ANALYSIS l Randgold Resources RANDGOLD RESOURCES subsidies. The Court of Appeal case involved ▲ p 6,825 Investec has reduced its recommendation on TELECOMS cause of its decline, due to both a drop 25 Jan the government’s move to halve the in sales as wireless operators concen- the gold mining business from “buy” to “hold” payments made to households with BY LAUREN DAVIDSON 7,400 trate on building fourth generation ahead of results on 6 February. The broker solar panels. Under the programme SHARES in the Swedish telecoms com- networks and the money spent on 7,200 has reviewed its production forecasts and the households are paid for the elec- pany Ericsson plummeted 15 per cent rolling out new Ericsson equipment 7,000 earnings to incorporate recent changes to its tricity they generate. yesterday – to the lowest point since across Europe. 6,800 gold price assumptions, considerably lower- The government – which says it can- 2008 – on a dismal set of fourth quar- •Motorola Solutions, the telecoms not afford to sustain the scheme – has ter results. equipment provider launched when 6,600 ing estimates for 2012 and 2013. Investec indicated that it will now take the case Net income came in at SEK1.5bn, Motorola Inc divided its operations 6,400 has also lowered its target price from 7,332p to the Supreme Court. just a third of last year’s 4.4bn Swedish last year, showed better results. Yearly to 7,303p. Climate change secretary Chris krona (£400m) and shocking analysts profits jumped to $1.16bn (£740m) Nov Dec Jan Huhne said after yesterday’s high who were expecting to see net income from $633m, with the year’s revenue court decision, which upheld the view nearer the SEK4.2bn mark. up seven per cent to $8.2bn despite a SYNERGY HEALTH that the government’s plans were Ericsson put this down to lower 37 per cent drop in fourth quarter ANALYSIS l Synergy Health legally flawed: “We want to maximize Brewin Dolphin has downgraded the health- sales volumes in networks, particular- profits. 900 p 866 the number of installations that are ly across North America where sales 25 Jan care equipment and services provider from possible within the available budget declined 20 per cent, and losses relat- ANALYSIS l Telefon AB L M Ericsson 880 “add” to “hold” as the shares move closer to rather than use available money to pay ed to the Sony Ericsson partnership, in 70 SEK 58.85 860 its target price of 943p ahead of third-quar- a higher tariff to half the number of 25 Jan which sales fell 20 per cent. ter results in February. The broker expects installations.” Ericsson agreed to sell its share in 68 840 Employers’ group the CBI urged the the partnership in October to Sony for second-half sales growth of 13 per cent, and government to abandon its legal battle 66 820 €1.05bn. The deal is set to close this remains positive on Synergy in the mid-term over its plans. 64 year. 810 given the structural and international growth “The judgement should be used to Ericsson reported net cash of 62 angle to the investment case. draw a line under this saga, which saw SEK39.5bn, in a 10 per cent rise on last 60 Nov Dec Jan the government scoring a spectacular quarter’s balance, but a 27 per cent own goal and confidence in the renew- drop on the end of 2010. To appear in Best of the Brokers email your research to [email protected] ables sector undermined,” said direc- Ericsson named modernisation as a 19 Jan 20 Jan 23 Jan 24 Jan 25 Jan tor general John Cridland. DEALATHON

GREAT DEALS ON A RANGE OF TABLETS AND SMARTPHONES

SAMSUNG GALAXY 7” TABLET SAMSUNG GALAXY S I9003 BlackBerry® Torch™ 9860 WI-FI £199 WAS £299 £10.50 £15.50 SAVE £100 per month1 per month1 3G£249 PHONE WAS £169.99 PHONE WAS £229.99 WAS £399 PHONE NOW FREE2 PHONE NOW FREE3 SAVE £150 SIM FREE ONLY £249.95 SIM FREE ONLY £329.95

Geek Squad service plans available from £8.99 per month.

Call 0800 781 7975 or visit carphonewarehouse.com

Allinformationisaccurateatthetimeofgoingtoprint.Important:duetothe fastmovingnatureofthismarket,alloffers,pricesandavailabilityaresubjecttochange.1Paymonthlypricesare subjecttocreditcheckandminimumtermof24 monthsonselectednetworksandtariffs.2Phonewas£169.99onO2£10.50permonth(24m)tariff,nowfree.3Phonewas£229.99onVodafone £15.50permonth(24m)tariff,nowfree.BlackBerry®,RIM®,ResearchhinMotion®andrelatedtrademarks,namesandlogosarethepropertyofResearchinMotionLimitedandareregisteredand/orusedintheU.Sandothercountriesaroundtheworld.UsedunderlicensefromResearchinMotionLimited.Alltrademarksandcopyrightsarethepropertyoftheirrespectiveowners. CITYA.M. 26 JANUARY 2012 News 21

CONOCOPHILLIPS TO PAY £100M FOR SPILL NEWS | IN BRIEF

Forth Ports takes over London site Heritage in Tanzania expansion $167.5m in 2011. Quarter-on-quarter, the Forth Ports has taken full ownership of a Oil exploration and production firm volume of finished products shipped in container terminal in London, it Heritage Oil has been awarded further the fourth quarter rose from 188,200 announced yesterday. The firm bought up acreage in Tanzania through the Kyela tonnes to 192,400, while production of the remainder of Tilbury Container production and sharing agreement Ilmenite and zircon was up 13 per cent Services, which is on the River Thames (PSA). The Kyela PSA has an area of and 12 per cent respectively. about 30 miles from central London, from 1,934 square kilometres but has never the other co-owners. The centre handled been previously targeted for hydrocar- Jupiter upbeat after new oil find 314,000 containers last year. DP World bon exploration. However, Heritage said Kazakhstan-focused oil explorer Jupiter said it sold its 34 per cent stake to Forth “gravity data over the area suggests the Energy said its latest exploration well for £48.45m, while Associated British presence of a sedimentary section of suf- struck oil, raising hopes that the compa- Ports offloaded its 32.7 per cent holding ficient thickness to allow for the genera- ny's oil field is substantial enough to for £46.55m, the firms said in a state- tion of oil”. enable it to soon start exporting oil from ment. Charles Hammond, chief executive the Central Asian country. Jupiter, which of Forth Ports, said the deal is “a major Kenmare sees revenue soar is listed in both Britain and Australia, said step forward in our plans to grow and Irish mining company Kenmare yesterday that its fourth well near Aktau, develop our ports business”. He said the Resources yesterday reported “robust” in-land from the Caspian Sea, found a 56 firm plans to combine its existing Short demand for its products in 2011, with metre zone of oil which could be pro- Sea terminal with Tilbury to create one of revenues up 83 per cent year-on-year. duced. The company is aiming to export the UK’s biggest container operations. Revenue rose from $91.6m in 2010 to oil from Kazakhstan by the end of 2013.

get ahead

US OIL company ConocoPhillips yesterday agreed to pay one billion yuan (£101m) in compensation for damages caused by a huge oil spill in the north east of China. The leak last June from an offshore field released more than 3,000 barrels of oil and lubricant off the coast, sparking anger among local people. Picture: REX Weir buys US pump firm in The Mayfair The Boosey £113m deal ▲ ENGINEERING and gas markets and builds a larger BY JOHN DUNNE upstream product range to offer The Hale The Colonel the developing international ENGINEER Weir Group yesterday shale markets.” announced that it had bought Dallas Shares in Weir closed up pump maker Novatech for £113m. almost two per cent yesterday at The FTSE 100-listed company said £19.64. get a hedderwicks the deal would give it a stronger foothold in the lucrative US oil and ANALYSIS l Weir Group gas market. Last November, Glasgow-based p Contemporary top hats, hand crafted and made to order. From traditonal to Weir acquired Texas-based Seaboard 2150 2100 exquisite couture, Hedderwicks creates unique, individual hats. Holdings for £430m. 1,964 Novatech specialises in pumps 2050 25 Jan which can work at high pressures 2000 Stand out from the crowd in a Hedderwicks. We can add personal touches and is already a supplier to Weir. 1950 Weir chief executive Keith 1000 that will set your hat aside from every other in the world. Cochrane said: “This strengthens further Weir’s presence in the North /DGLHV +DWV LQFOXGLQJ HTXHVWULDQ WRSSHUV IRU GUHVVDJH DQG ÁDPER\DQW American unconventional oil 19 Jan 20 Jan 23 Jan 24 Jan 25 Jan EHVSRNHKDWVDOVRDYDLODEOH Renishaw sees record revenues but suffers a dent to earnings

▲ ENGINEERING systems in automotive, civil aviation, agriculture and energy looks “increas- BRITISH engineers Renishaw said yes- ingly favourable”. terday it enjoyed revenue growth of 11 However, the company saw interim per cent during the half of 2011 com- pre-tax profits drop from £35m in 2010 pared with last year. to £31m in 2011. Renishaw attributed The company said its total revenue the drop in profitability was due to sig- WWW.HEDDERWICKSOFLONDON.COM of £147m for the period is a half-year nificant investments in staff and infra- [email protected] record. structure to support growth. Renishaw also said it is expecting The company has maintained its recovery in the electronics sector, interim dividend payment at 10.3p per while global investment in production share. 22 News CITYA.M. 26 JANUARY 2012

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with

Aon Hewitt, as a partner in its invest- appointed Lynn Ruddick as a non- after spending 21 years in various Smith & Williamson ment business. executive director, as George Robb leading roles at German consulting Laurence Bard has been appointed as a part- retires from the role. Ruddick is non- firms. ner in Smith & Williamson’s accountancy and Arbuthnot executive chairman of Fidelity Special investment management group’s corporate tax James Fleming has been appointed as Values and British Assets Trust, and Grant Thornton team, based in London. He started his career at chief executive of the private bank and non-executive director and chairman Alan Dale has been appointed as a a Big Four accountancy firm, where he spent joins the board. Fleming has over 25 of the audit committee of Standard partner and head of Grant Thornton’s 15 years as a tax adviser. He then spent four years of private banking experience, ini- Life UK smaller companies trust. operational deal services team, and years as an independent, working for many of tially at SG Hambros and then at Coutts the firm has promoted Hemal Shah to the same clients, before joining Shaws in 2005. & Co, where he rose to managing direc- Roland Berger corporate finance director in the tor of the UK entrepreneurs, landowners The strategy consultancy has hired transaction advisory services team. Macro joins from Towers Watson, and inpatriates client groups. Paul Jowett as managing partner of Dale previously spent nine years at Mercer where he was a senior consultant. the firm’s London office. Jowett PwC and 12 years at Rolls Royce, and The HR consultancy has appointed Paul Mercer has also hired John Benfield, for- City of London joined Roland Berger’s corporate Shah specialises in financial due dili- Macro as head of defined contribution. merly a senior investment consultant at City of London Investment Group has finance team in Germany in 2010, gence.

To appear in CITYMOVES please email your career +44 (0)20 7092 0053 updates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com Banks and oil firms weigh on the FTSE

tral” from “buy”. Macquarie also downgraded its rec- THELONDON ommendation on RBS in a broader note on banks. Peers Lloyds Banking Group and REPORT Barclays fell 2.3 and 0.5 per cent as Macquarie compared the current RITAIN’S top shares closed European crisis with that in Japan in lower yesterday as banks fell the 1990s and concluded the recent out of favour after brokers rally is an opportunity to take profits. Burged caution on the sector Worries over their outlook hit inte- after recent gains, while poor growth grated oils, as JP Morgan said the sec- in the UK highlighted the challenges tor was set for some weak earnings in facing corporates to meet earnings its fourth-quarter results preview. expectations. Royal Dutch Shell and BP shed 1.6 London’s blue chip index closed and 0.6 per cent respectively, as down 28.90 points, or 0.5 per cent at JPMorgan cut its 2012/13 earnings 5,723.00, as the FTSE 100 retreated estimates for both firms by up to 10 from six-month highs hit on Monday, percent. but held above 5,700 - the level it had struggled to close above since last ANALYSIS l FTSE 5,723.00 August. 25 Jan 5,800 p Banks were the main fallers, hav- ing risen around 15 per cent early in 5,700 2012, compared with about a three 5,600 per cent gain on the UK’s benchmark 5,500 index, as analysts at UBS and 5,400 Macquarie cast doubt over the sus- 5,300 tainability of the recent rally. 5,200 Royal Bank of Scotland shed 1.1 per 5,100 cent as UBS cut its rating on the majority state-owned lender to “neu- 31 Oct 18 Nov 8 Dec 30 Dec 20 Jan Nasdaq takes a bite of the prized Apple

rates near zero through at least 2014, THENEW YORK which was longer than many investors anticipated. Apple shares hit an all-time high of REPORT $454.45 on results issued after Tuesday’s market close that sailed past expectations. The move higher IG profits from Apple and a pushed Apple’s market capitalisation promise from the Federal above that of Exxon Mobil, making it Reserve to keep rock-bottom the largest publicly held US company. Brates for at least two more years The Dow Jones industrial average powered the US stock market higher rose 83.10 points, or 0.66 per cent, at yesterrday. 12,758.85. The Standard & Poor's 500 Apple led the Nasdaq to a one per Index was up 11.41 points, or 0.87 per cent gain. Shares of the maker of cent, at 1,326.06. The Nasdaq iPhones and iPads surged to a record, Composite Index ended up 31.67 making it the most valuable US com- points, or 1.14 per cent, at 2,818.31. pany in terms of market capitalisa- Both United Technologies and tion. Apple finished up 6.2 per cent at Rockwell Automation slightly missed $446.66. revenue forecasts. United Tech closed Buying picked up after the Federal down 0.2 per cent at $77.65 and Rock- Reserve said it would keep interest well dropped 2.9 per cent to $79.42. 23 Business Features | Careers Why networking gives you the edge

tion and this is appropriate because business people in America, over 91 theorist Steven Johnson wrote in the It’s not about handing out business the best networking is about the per cent of whom believe that net- bestseller Where Good Ideas Come gathering of, and exchange of knowl- working is integral to winning busi- from: “A good idea is a network”... “a cards, or even social media, but an edge. As every business and its ness. Other survey data in the book new idea is a network of cells explor- employees and customers face a confirm what most of you probably ing adjacent possibilities.” ability to build effective relationships tsunami of information they face already know, that most business or Business has always been about twin challenges: what to engage with jobs comes from direct refer- knowing the art of the possible. and what to tune out. This challenge ral, either from a recruiter, Giving or getting networking skills business thinking which brings net- is central to embracing the new net- or a personal connection. will get you further, faster. And in working out of its silo as a take-it-or- working. To be clear, I have a vested this climate, that leave it soft skill, and into the realm Others are getting in on the act too. interest in saying this. I run a has to be priceless. of something with a harder edge: net- In October I went to Boston to advise corporate networking busi- Julia Hobsbawm working matters because it adds to Harvard Business Review executives ness for global clients runs the corporate the bottom line. about the world of face-to-face net- investing in their peo- networking company This may seem strange, given that working. Less than three months ples’ networking Editorial networking has lightweight connota- later they launched their first online skills in a way Intelligence. tions and it remains overly associated networking toolkit, Developing Your which would JULIA HOBSBAWM with standing isolated at a cocktail Professional Networks, saying that have been EDITORIAL INTELLIGENCE party or conference, waiting to do the “real networking is critical to busi- unheard of as only thing you know how to do, ness success”. little as five namely to hand over your business Furthermore, a book published years ago. But HEN Cass Business School, card. But while much of networking recently by the respected American in this climate regarded by the City as its has at its focus not social networking networking specialist Ivan Misner there is only very own business school, but intelligent face-to-face contact, looking at the differences in the way one reason why Wrecently asked me to ideally curated so people do not feel men and women network – provoca- a business like become the first ever honorary visit- left to their own devices, it is about tively titled Business Networking and mine is growing: ing professor of networking, they much more than this too. Sex: Not what you think – cites the it works. were recognising a significant shift in Cass is of course a learning institu- results of a three year survey of 12,000 As the American Too many young people lack skills for work

It’s never too early the employer that they are able to to build up some IT Business courses and internships will offer immediate value to an organisa- knowledge tion. help to prove you can do the basics Companies are increasingly also Picture: GETTY looking to see that even the youngest IMAGES may not necessarily use tradi- of recruits have already gained some tional means of job hunting. work experience. There is no substi- That means using things such tute for real experience and it also as social media to attract talent, gives them a chance to impress poten- rather than relying only on the tial future employers. traditional advertising, offering With employers and employees both more flexible working schedules becoming increasingly demanding, including working from home job hunting is becoming even more occasionally and even access to challenging, but the opportunities for CARLIE SANTORO Facebook on office machines. a more productive workforce can only QUEST PROFESSIONAL Rather than just looking at the benefit from the increased focus on quality of a degree, large City personal, as well as professional tal- companies are now looking for ents. HERE’S no doubt these are more personal skills. They want Carlie Santoro is recruitment manager at tough economic times, par- to see evidence that a young per- Quest Professional. ticularly for graduates and son is self-aware, has the ability Tyoung people vying for lim- to take responsibility, is consis- ited roles in an increasingly com- tent and capable of taking initia- petitive job market. tive and willing to be adaptable. The resounding sentiment Working in the City can be the among young people is a fear first time a lot of young people that they are not entirely pre- are in an environment where pared for the work. Having prac- things are not handed to them tical and personal skills that are on a plate and the ability to take useful in the workplace is just as feedback without getting a chip valuable as being flexible and on their shoulder is also a key 8IZ\̉\QUMJTMVLMLTMIZVQVO ambitious. asset that companies now seek We are fortunate enough to through their selection tests. QV+MV\ZIT4WVLWV work with some of the best We see so many graduates that employers in the UK, who all don’t know many of the basic - Develop your own leadership method tend to give us the same feedback business skills and need to be when looking at employing nurtured so they are fully pre- - Manage complex problems effectively young people. They tell us that pared for the business environ- - Create an entrepreneurial culture they see too many people who ment. There are a number of lack many of the basics such as IT options available to young people skills, an understanding of finan- and graduates looking to make GET YOUR IDEAS MOVING cial procedures and even stan- themselves more appealing to dard office protocols. Companies employers and land that dream are having to go into schools to job. Completing a short business talk to potential young talent at course or on an internship to CONTACT US an early age. build some experience into their There is no longer the rigid CV is the most important first ZMOMV\[IK]S “degree-only” criteria that used step that employers look for.     to apply across the board. Courses that are specifically M`ZMT(ZMOMV\[IK]S Companies are using a range of tailored to suit a young person’s innovative ways to attract young needs not only ensure that they talent, mindful that the type of approach employers with all the

BIG DATA IS A GIANT OPPORTUNITY IF YOU Big industry PLAN FOR ITS NEEDS TIM SKINNER responses are DIRECTOR UK ENTERPRISE CISCO

WHAT DOES THE INDUSTRY MEAN BY BIG DATA? Big data refers to data sets that are too large to economically needed to big manage and analyse with traditional IT techniques in a rea- sonable timeframe. Big data is typically in the tens to hun- dreds of terabytes range, or even much larger. Sources include both human and machine-generated unstructured and struc- tured data. Big data is most frequently associated with large, distributed, internet-based solutions as used by Yahoo, Google data explosion and Facebook. However, the term also typically covers newer commercial applications such as using Twitter feeds for cor- porate sentiment to judge the risk of financial investments. As storage and reporting needs grow at a WHAT ARE THE OPPORTUNITIES HERE? By 2013, 15 per cent of business intelligence (BI) deployments rapid rate, businesses must be able to keep will combine BI, collaboration and social software into deci- sion-making environments. Additionally, 33 per cent of BI up with developments, writes Craig Drake functionality will be consumed via handheld devices, enabling more accurate decisions to be made faster. According to IG data has been the big tech BIG DATA AND FINANCE Gartner, data warehousing and business intelligence ranks in issue of the last year and this In the financial sector, the stipula- the top five of chief information officers’ priorities, identifying trend is set to continue as vol- tions of ever mounting layers of reg- the opportunity to create new revenue streams by offering Bumes of transactional data ulation – such as the Markets in new client services while lowering business risk. continue to grow. Financial Instruments Directive So what do people mean by big review (Mifid II) – as well as WHAT ARE THE KEY CONSIDERATIONS FOR data? The definition is largely subjec- increased volumes of data are driv- COMPANIES LOOKING TO CAPITALISE ON THIS tive and refers to datasets of a size ing the requirements for exponen- PHENOMENON? that is beyond the ability of typical tially increasing data storage and It is important to establish an architectural, scalable database tools to capture, archive, analysis. “On some days in 2011, data approach; big data is not simply a bigger traditional data and manage. Sources can include volumes were almost double that of ABOVE AND BEYOND warehouse. There are some differences, and recognising what human and machine generated Beyond simply achieving regulatory is required for both server and network solutions is key to a unstructured data such as logfiles, compliance for transactional report- successful deployment. By 2014, 30 per cent of analytic appli- semi-structured such as documents “Every two days we create ing and best execution, companies cations will use in-memory functions to add scale and compu- and structured relational data. should also be focusing on making tational speed. Ensure the solution truly meets the business Rather than being defined in terms as much information as we big data analytics work for their requirements of the organisation, and avoid technological cul of “greater than x terabytes”, as stor- business. Through data intelligence de sacs. age and the capacity of database did from the dawn of mining and analytics, behavioural Big data is not simply a way to store and serve “a lot” of data. tools increases, so will the definition modeling and inference-based deci- A large file store is one thing, but big data implies analysis – of what constitutes big data. civilisation up until 2003” sions, big data can be used to provide or at least manipulation – of the data set. Information is now growing at a a competitive advantage. faster rate than our electronic sys- – Eric Schmidt, former In the finance sector, financial risk tems improve (Moore’s Law states modeling, near real-time financial that that the number of transistors Google chief executive analysis and cyber security and that can be placed inexpensively on threat analysis can all be given the an integrated circuit can be expected the previous day,” says Simon edge with the aid of big data sets to double approximately every two Garland, chief strategist at Kx and powerful analytics. “With big years). According to IDC estimates, Solutions. “In addition, events such data, none of it can be discarded,” the average enterprise will need to as the flash crash have brought wild, says Garland. “All of it must be manage 50 times more information short-term increases in data volumes analysed, tick by tick. The institution by 2020 while increasing IT staff by to the forefront of concerns, while that does that will spot market only 1.5 per cent – a challenge that problems in the Eurozone have opportunities which someone just businesses will have to respond to in resulted in market instability and working with aggregated data could an efficient manner. therefore increased volatility.” miss.”

While innovation comes rapidly in the IT industry, basic server architectures haven’t changed for decades. That’s why Cisco introduced the Cisco Unified Computing System—which integrates compute, networking, storage access and virtualization. IT we’re not just departments dramatically reduce data center complexity while: Ȥ /RZHULQJRSHUDWLQJFRVWVE\XSWR making servers. Ȥ 5HGXFLQJGHSOR\PHQWWLPHVIURPZHHNVWRPLQXWHV Ȥ +DUQHVVLQJWKHSRZHURIRYHUZRUOGUHFRUG we’re making performance benchmarks.

The Cisco Unified Computing System signals the next evolution of server history. the data center—where everything, and everyone, works together like never before. Find out more at www.cisco.co.uk/ucs 25

Data volumes are increasing Taking a look at what’s around exponentially Picture: GETTY the corner for big data in 2012

HEN it comes to planning ing a flash crash, you will have the your responses to increas- budget to buy all the hardware you ing data needs, it is not need. Wenough to simply try and Here are Simon’s predictions for respond to regulatory requirements big data in 2012: as and when they pop up – to do so leaves you with a disjointed and inef- ficient system. Instead, businesses 1. Expect the unexpected. must plan ahead and anticipate what might be coming around the corner, as well as future proofing 2. An accelerating trend for having their systems so that they are always small, expert in-house trading/trade in a position to implement new tech- support teams rather than outsourc- nology that can help them to get an ing. advantage over competitors. The good thing about regulation is that it is fairly easy to plan for. One 3. Risk management will make it of the great ironies of the Mifid increasingly important to have a review is that it has been largely (near real-time) view across all asset driven by EU officials with a fear of classes and all geographical locations the fast march of technology but yet rather than looking at silos. has taken years to implement. As such, it is not an insurmountable task to respond to its requirements. 4. As greater data volumes and The more difficult task is to volatility push hardware and soft- respond to market events – to be able ware systems to their limits, the need to handle the surges that create the to monitor and manage systems huge data volumes 0.5 per cent of dynamically becomes more impor- the time, but not be left with a lot of tant. idle capacity for the other 99.5 per cent. But as Simon Garland, chief BIG DATA BY NUMBERS strategist at Kx Solutions points out, 5. More data and more volatility. if you have the capacity to trade dur- 40 % 235 $300bn projected growth in global terabytes of data collected potential annual value to US data generated per year by the US Library of health care – more than versus 5 per cent growth in Congress in April 2011 double the total annual global IT spending Spanish health care spend €250bn £600bn 30bn potential annual value to potential annual consumer pieces of data shared on Europe’s public sector surplus from using personal Facebook every month Businesses need to take a peek at administration – more than location data globally what’s coming the GDP of Greece Source: McKinsey Global Institute Picture: GETTY ©2011 Cisco Systems,©2011 Inc. All rights reserved. 26 CITYA.M. 26 JANUARY 2012 The Forum cityam.com/forum Britain’s healthcare system is on the critical list – why are medical unions in denial?

T REALLY is time public sector unions in the developed world’s league tables we the moment the centralised nature of the sys- stopped taking the lazy option. And fare appallingly. One study by the Taxpayers’ tem means that only 17 per cent of health- those representing the medical profes- Alliance estimates that compared to other care funding in the UK is private. There are Ision, above all, should be showing the European countries an extra 12,000 deaths all kinds of restrictive practices, for instance rest of their comrades leadership – for deci- occur a year in the UK due to inferior health- the systems by which doctors are licensed, sions made over the nation’s healthcare are a care. We have poor cancer survival rates and that make it hard for private providers to matter of life and death. comparatively high deaths from circulatory compete fairly. The nature of the current sys- Yet the doctors’ union is threatening to disease. Data from overseas suggest that tem also creates ill-feeling towards the pri- strike over the current pensions offer, while either European-style, insurance-based fund- vate sector, as there is not enough the nurses and midwives unions are both ing or, better still, a savings account system competition to drive down private prices. opposing the coalition’s NHS reforms. It is as in Singapore would produce better health In the face of these great national issues, time to face facts. In the name of patient care outcomes at a lower cost. medical unions are refusing to engage. They and professional integrity, unions are a mil- In the face of these statistics, change is should be the very ones leading the charge lion miles from where they should be on both inevitable and essential: we have a sys- for constructive reform on all these issues, both these issues. tem we cannot afford and that doesn’t work. preserving the future of their profession and On pensions, the status quo is not viable. Across the health service, we have lost sight improving the quality of its work. They These pensions are underfunded to a stagger- of the people it is meant to be there for – the should be proposing a sensible and reason- ing extent. Doctors pay in only 8.5 per cent of able model for reform to the structure of the their salary, while the cost to the taxpayer of NHS, as well as to pay. Yet where is an alterna- the employers’ contribution is equivalent to tive from unions that will deliver for more than 40 per cent. Even under the gov- Compared to Europe, bad patients? Where is their comparative study of ernment’s current plans, doctors’ contribu- insurance models across Europe or of the tions will only rise to 14.5 per cent. healthcare causes 12,000 impact of health savings accounts? Someone has to pay for these pensions. It Unions must grasp the reality of the crisis seems unions still haven’t woken up to the we face. Innovative thinking in healthcare is fact that the government has no money of its extra UK deaths a year. in the interests of both patients and medical own. It is the private sector that will end up professionals. What a tragedy then, that it is footing the bill for the shortfall in the pen- unimaginable for Britain’s doctors to be in sions of these already very handsomely-paid patients. Quality has declined and it is time the vanguard of improving our broken sys- doctors. More important still, the degree of we found ways of bringing in more accounta- tem. underfunding is such that future generations bility and putting the people it is there to Ruth Porter works for the Institute of Economic of the private sector will also have to help pay serve back at the heart of its mission. This Affairs (iea). off these obligations. At a time when private means structural reform, and on a much sector workers are facing tougher pension more radical level than the coalition is talk- conditions, they are effectively being hit ing about. Agree? Disagree? Got a sharp comment? twice. Changing how the NHS is funded can be The Forum wants you to join the debate. On NHS reforms the situation is just as only part of this. The way the medical profes- bad. The current NHS structure is simply not sion works must also be modernised. Central COMMENT NOW ON delivering. International comparisons reveal pay bargaining and the negotiation of pen- that medical outcomes are dreadful, despite sion arrangements at a centralised level is Twitter: @cityamforum; spending rises and the exemption of the not conducive to creating a workforce that on the web: cityam.com/forum; health budget from the cuts. Structural cares or performs to the best of its abilities. reform is long overdue. There should be much more differentiated or by email: [email protected]. We now spend over 8 per cent of GDP on pay across the sector and regions. Top responses will be reprinted in The Forum. health. It is the second-largest area of expen- We also need to consider ways to deregu- RUTH PORTER diture for the government after welfare. Yet late healthcare to improve competition. At CITYA.M. 26 JANUARY 2012 27 In association with Email: [email protected] Twitter: @cityamforum The Forum

RAPID RESPONSES Reduce naked risk The music stops Jamie Whyte’s proposal for the risk of the trader taking a big together with the auction amount, amending bankers’ pay structure losing bet – the risk/reward is still and his subsequent trade could be [Strippers can show us bankers’ very asymmetric. The way to avoid protected by a stop-loss equivalent just rewards, yesterday] is certain- this problem would be to control to the size of the pot. This could be for UK breaks ly worth consideration but needs the trader’s bet by putting in place repeated for further trades with further refinement. In Whyte’s a stop-loss limit equivalent to the the contents of the pot determin- model the bank is still subject to trader’s winning bid in the first ing the stop-loss limit on any trade. losing large amounts of capital at trade. In this way, the bank’s capital is the hands of its trader, whereas If he makes a bad first trade, he is protected in the event of a losing Stringfellow faces no such capital blown out, but the bank only loses trade and an adequate return is on bankruptcies risk with his lap dancers. the amount it gained in the auc- made by the bank on the capital at A trader winning the auction can tion. If the trade is successful then, risk in any winning trade. lose the bank millions and the say, 15 per cent of the profit would Zafar Khan higher the winning bid, the higher be added to the trader’s pot, investment analyst Proposals to alter the rules in Eire There isn’t any debate: could put a stop to legal tourism

Voters want openness HE singer Kenny Rogers once sang “you’ve got to know when to hold ‘em, know when to fold ‘em, know when to BY EWAN WATT Twalk away, know when to run”. While US ELECTIONS Rogers was singing about a ga mbler, he could just as easily have been singing about th e Irish HIS bar stool Romney’s attacks against Gingrich are not new, but people’s attitude to th eir bankruptcy regime. observation from a they may still have legs. Voters actually know signifi- Increasingly th e people of Ireland have been stranger on cantly less about the candidates than one would folding and running for th e shelter of th e DAVID RUSSELL TMonday evening expect. But Romney knows that counting on a polling more relaxed rules in th e UK. may well have nailed it. implosion for Gingrich is no sure thing. Romney is still This has spawned a “bankruptcy tourism” with th e bankruptcy of Ireland’s former rich- “I’d like to see Mitt recovering from last week’s failure to release his tax indust ry and th ere are now a host of compa- est man, Sean Quinn. Quinn, who as recently Romney as my president, returns, a moment of indecisiveness that created the nies set up on both sides of th e Irish Sea to as 2008 had a net worth of £3.73bn according but I’d love to see Newt impression he had something to hide. Having now advise Irish people on th e intricacies of declar- to th e Sunday Times Rich List , was declared Gingrich debate Barack released them, overcoming this trust deficit is now all ing bankruptcy in th e UK. The indust ry owes bankrupt at th e High Court in Dublin. Obama.” Gingrich has something the Republican base the more challenging. In two years Romney has paid its birth to th e curr ent period of bankruptcy in Quinn had previously been declared bank- values – combativeness, as well as a veneer of near- around 14 percent in capital gains taxes on earnings of Ireland, which is 12 years, during which time rupt in November 2011 in Northern Ireland invincibility on the stage before a live TV audience. $42.6m. It’s legal, and the figure undercounts his true you cannot act as a director of a company, oper- but th is was subsequently challenged by a Three bouts against Obama would be great theatre. Or tax contribution, but voters will ask “is it fair?” ate a bank account or obtain credit over €635 creditor, Irish Bank Resolution Corporation, so the theory goes. Florida is crucial because it awards all 50 of its dele- without declaring your bankruptcy st atus. In who claimed his COMI was in th e Republic of But is this veneer merely a facade? On Monday, gates to the winner. But much to the chagrin of the contra st , th e UK period is 12 months. Ireland. Quinn vehemently denied this, stating Romney rattled Gingrich over his ethics charges, candidates, endorsements from Florida’s statewide However, yesterday th e Irish justice and “I’m 65 years of age and I’ve never worked a reminding the audience that it wasn’t partisan Republican leaders appear not to be forthcoming. finance ministers unveiled a new Personal day of my life outside Northern Ireland.” Democrats who forced him to resign the speakership Governor Rick Scott will not endorse, which may not Insolvency Bill which will allow debtors to Un fortunately for Quinn, on 10 January in disgrace, but his fellow Republicans. He then pressed matter. Scott has state-wide approval ratings in the emerge from bankruptcy after three years Just ice Donnell Deeny in th e High Court in Gingrich about his history as an “influence peddler” in low thirties and only half of Republicans believe he’s rather than the current 12. There will be much Belfast found his centre of main interests to be Washington. Gingrich didn’t just appear thin-skinned – doing a good job. Rumours of former governor Jeb discussion on the proposed legislation within in th e Republic. Among other factors, Quinn he was translucent. He responded that he didn’t “want Bush endorsing Romney were unfounded and senator th e Irish national parliament, and it may be had his home and offices in County Cavan and to debate” Romney’s accusations. Of course. If the Marco Rubio, the Republicans’ most popular official, many months before th e bill becomes law. his advisers’ offi ces in Dublin. Deeny annulled American people wanted to see the facts, he stated, has also pledged to stay out. Romney’s campaign did Central to a foreign national presenting a the Northern Irish bankruptcy order, leaving they should check out his website. They won’t. get the next best thing – Rubio publicly defended bankruptcy petition in th e UK is th e establish- Quinn open to proceedings in th e Republic – Gingrich’s campaign blamed the debate format for Romney following a Gingrich attack. ment of a centre of main interests (COMI). It is which were swiftly issued. his lacklustre performance; audience members in The main lesson from last week is that momentum generally sufficient for you to be conducting This case may prove to be an anomaly, but it Tampa were asked politely not to applaud. The format can carry you towards the finishing line, but it can also business and or living in th e jurisdiction. will be interesting to see how future bankrupt- even led the former speaker to threaten a boycott of force you to stumble. Like Romney in South Carolina, Examples of how a person can establish th eir cy proceedings deal with jurisdictional issues. future debates, which have thus far been the oxygen Gingrich will find that poll leads are worth little if you COMI in th e UK are: taking up employment, These issues togeth er with th e new Personal that have fuelled his spectacular comebacks. But fail to respond appropriately to reasonable questions. having a national insurance number, opening Insolvency Bill could see a slow down in th e Gingrich is a stump speaker, not a debater. He thrives Unemployment and housing foreclosures in Florida are a bank account and having a tenancy agree- bankruptcy tourism trade. It remains to be off applause lines, not one-to-one combat. Tonight’s fourth and second highest in the country respectively. ment. Obviously this list is not exhaustive but seen whether prospective Irish bankrupts will debate in Jacksonville will be more to his liking, but if Some Floridians are looking for miracles. The least is indicative of how a COMI can be created. continue to flee to th e UK or st ay at home to he requires a rowdy audience, how will he fare against Gingrich can do is provide credible answers. Bankruptcy tourism has been much dis- face th e music, Kenny Roge rs or otherwise. Obama? It’s custom for debate moderators to ask for Ewan Watt is a Washington, DC-based consultant. cussed in th e Irish press during th e Irish reces- David Russell is a specialist in insolvency fo r silence during the presidential debates. You can follow him on @ewancwatt sion and returned to th e front pages last week Bracewe ll Law. CITYA.M. 26 JANUARY 2012 28 Wealth Management | Isas

(' ('  (' L'& #+ "'% '3$  K     K H                 H    K I            J    K J   

$@713 65 756 =E $@713 65 756 =E $@713 65 756 =E $@713 65 756 =E $@713 65 756 =E $@713 65 756 =E $@713 65 756 =E $@713 65 756 =E  (' #"'(&)(#"3!(& ' @3E7<=:>67<=       &$@=C>       /B:7<@=C> B2       C;7       />7B/:'6=>>7<5              7A1=F B2       3==<        (AG         /:4=C@3/BBG        6/@:3A(/G:=@=      /@27<3 :=G2(6=      C@/A7/<"/BC@/:       @3/B$=@B:/<2A        /20@=93A      (AG         &         7BG=4 =<2=<@      "& &( &' /<1/A67@3=:27<      @3A<7::=      /;;3@A=<      !/@AB=<(A     (AG        /::74=@2(@G       7BG=4 =<2=<<        @=E<6"7@=C>       &'B         (AG        73@@=C>       :=A3@=B63@A@     /@>3B@756B      D7D/    :3<1=@3@3AA        (&(- "')&" (AG       3AA3B!/      (AG        @/F@=C>        /@5@3/D3A /       (AG        ''       3:>67@3@=C>      C<3:;@=C>     #:2!CBC/:      =<;7<       '#(+&3#!$)(&'&* '>7@7B$C0=;>/<      (AG          (&#"3 (& % 3<23@A=<@=C>       /:4=@2A@=C>       $6=3<7F@=C>=:       "3E+=@:2&3A=C@1       D3D/@=C>      'B/531=/16@=C>       (AG        756E/G/>7B/:      =;3&3B/7:@=C>      $@C23/D:=DA9      =;>CB/133       &3A=:CB7=< B2        $=:G;3B/:      +67B0@3/2        (AG           /:;/        @=C>=:27<5A        '>=@BA/A67=<         'B/;3A(A$:/13     &/<25=:2&3A=C@13         7      3A/:31B@71/:A        'B/<2/@2 743      &7=(7@7      *32/3<13@       ,AB@/B/       !7AGA       01/;        (AG         &3<7A6/E               2D/<132!3271/:      (AG       '>31B@7A       $@=C>       '>=@BA7@31B       !# ( #!' '      :03;/@:33=<2        (AG       C>7B3@C<2!/     ;3@7AC@&3A=C@13      (AG          %)(-"*'(!"("'(&)! 7=        <2=@(316<=:=5G       (AG        03@4=@B6';/::3@       !'/>7B/:       33:/5=&3A=C     (AG         ::7/<13(@CAB       =<2=<763E         67;3=;;C<71/B7     "#"%)(-"*'(!#!! 55@39=       '#'        (AG        /<93@A      C@3:7/<#7:3/       (AG        :=0/: B2        =<@6=       /7:G!/7:/<23     B97        # '3#!#"'(& C@=;=<3G#4       /@@/BB3D3:=>;3      CBC@3       4@3<      3@3<2A3<       =@23@A3'=CB63@       (AG         !/1@= B2$       $@=D723      C=        C3      @==9A!/12=7B/       =D3<3@5G       (AG        :C3@3AB:::C3        &'!(3<=<@=C>     <%C3AB       /@7::7=<         /7AG@=C>      (AG          @7B7A6AA3BA(@       '16@=23@A         !""')  AA/@<3@5G       3 /&C3     !'@=C>        (AG        @7B7A6;>7@3'3        '16@=23@A6"=<*=        F7::=<<3@5G     7>:=;/      /@=3$3B@=:3C;        (AG         /:32=<7/=<3A@=C      #>67@<3@5G       F>3@7/<     +$6/@;/13CB71/:      (AG        3F7=<0A=:CB3        &3<7A6/E    ::732=:2!7<7<5    $@3;73@#7:      7:B@=      27<0C@56@/5=<       , "( #!' 4@3<   =16A167:2!7<7<5    &=G/:CB16'63::       '      /;E=@B6G        27<0C@56        !7AGA    C    $.CAA=      # (@=C>'     (C::=E#7:      3::/;@=C>      723:7BGC@=>3/<       #!@=C>     +';7B6  /::74=@2(@G         /;3A/:AB3/2       3@/:23@;/@93B1    # %)$!"(3'&*' &#'$3" (/:9(/:9(3:31=;        !716/3:$/53        =<2=<!7<7<5      'GAB3;A       ;>/F    $6=3<7F@=C>=:2    CCA/>7B/:       ##3&)&( &' 63;@7<5@=C>      =6< /7<5<4@/A       @7BD71  (/:D7D//@/!7<7<5   3=@/B7=<       $@3;73@/@<3::       !$D/      =06/;       $!=@5/<;3@71/<        ==93@@=C>      /;>@3::     &35CA     !/83AB71+7<3         !3557BB       $!=@5/<A7/<<        @355A        $@713 65 756 =E $@713 65 756 =E $3B@=4/1 B2       &3      $!=@5/<;3@57<5        !=@@7A=<6+;7'C>       +==2@=C>6=6<7       &$'@=C>      !=<7B7A3        &=::A&=G13=:27    $!=@5/<C@=>3/<       #1/2=@=C>      '3@1=@=C>        !C:03@@G@=C>        =D7A=;3A@=C>      <4=@;/    $&'#" ##' '3<7=@        $!=@5/<<27/<      '/7      '6/<9A@=C>        "/<=1=@=C>     ):B@/:31B@=<71A         $!=@5/<&CAA7/<        (3A1=        &3197BB3<197A3@      (*      C@03@@G@=C>        '       "/CB71/:$3B@=:3C       /E3033G      !31=;@=C>        'C>3@5@=C>       +=:A3:3G        "C;7A=@>=@/B7=<        "      !3@16/3@;/@93B      $/<4@71/<&3A=C      ")'(& ""&" $&!)( '3#( ("# #-&+3%)$ " ' !=<9A       =2G1=B3       $3@4=@;@=C>        AB@/.3<31/        &!=:27<5A      $@3HH=      /@1:/GA      !C@@/G3BC/:<1=;3     (/B33 G:3       !      &756B;=D3        3>3@F>:=@      :=G2A/<97<5@       $3@A=       :/F=';7B6 :7<3      '>7@3(316<=:      79;/$6/@;/13CB7       '31C@3(@CAB/<9       #&'(&-3$$& "=@B65/B3      (/@ACA@=C>       (## 'B/<2/@26/@B3@3        &(/>7B/:$/@B<      &=B=@9        (@7<7BG!7@@=@      '67@3$:1     '=<507@2AB/B3A      '1=BB7A67@/F'/@1=<57     )!        & '(("*'(3'&* '1=BB7A6!=@B5/53      +37@@=C>      )(*!327/         ;>3@7/:(=0/11=      -=C<53=(A@3E      /@@        '*/>7B/:      'N+(&3!) ()( (' />7B/:3=C      (&* 3 ')& @7BD71    (3;>:3/@=     +$$      /38/<=:27<5A         7/53=        (3;>:3B=<;3@57<          3=;;3@17/:$@        3B4/7@@=C>      '!7::3@       (&$@=>3@BG/@BG757B/       (&$@=>3@BG     !"" =<2=<3'B/;4=@2       /@<7D/:        ! ' ")'(& (&"'$#&((#" +7B/</AA@=C>       .:31B@=<71!/B      "" '&*' )<7B32)B7:7B73A      'B=0/@B@=C> B2     ::732=:2!7<7<       ) =;;3@17/:$@=      =;7<=(A$7HH/)      @=2/         3/AG3B        "& ")'(& ' 2;7@/:@=C>     <5:=;3@71/<       :3;3       <5:=$/17471@=       7@AB@=C>           =6              *71B@3F       03@233<AA3B!/        '';7B6      ;:7<       ?C/@7CA$:/B7       @33<3 7<5        -C:3/BB=3=     A6;=@3@=C>        &3F/;       3/H:3G       $7::7B=<       @7B7A6 /<2=       3/<@3>=@/B3     )"&(      #"$ )!!    )"( (&#)$         ##     #&C@==D3@<756B     C@=C@70=@     )" *&*        )!")!'      *&.#"#!!'          #   #&C@= ;=

TOP 10 ISA ELIGIBLE UK REGISTERED CORPORATE BOND FUNDS Corporate % Change Latest Bid Latest Portfolio Total Expense Domicile/ Bond Fund 23/1/2009 – 23/1/2012 Size (£m) Ratio Currency Bury bonds in Old Mutual Corporate Bond Acc 74.37 1.63 500.54 1.24 UK/GBP Henderson Sterling Bond Retail Inc 73.54 0.55 485.63 1.45 UK/GBP Baillie Gifford Corp Bd A Inc 67.2 0.67 145.4 1.09 UK/GBP Ignis Corporate Bond Inc 56.71 0.92 238.94 1.22 UK/GBP tax-efficient Kames Sterling Corp Bd A Acc 52.91 0.54 383.33 1.08 UK/GBP L&G Managed Monthly Income R Inc 51.96 0.53 52.96 1.2 UK/GBP BlackRock Corporate Bond A Inc 51.74 0.93 121.05 1.08 UK/GBP L&G Managed Income R Inc 51.71 0.51 299.14 0.93 UK/GBP Legg Mason Global Blue Chip Bond A 51.61 0.88 37.26 1.36 UK/GBP Isas to avoid M&G Strategic Corporate Bond A Inc 49.52 0.66 4,214.32 1.16 UK/GBP Source: Morningstar digging deep Bailouts aside, proper capitalism sees companies go bust all the time – but you can spread risk, writes Philip Salter

IDDEN among the carnage fol- investors saw that the yields on offer lowing the implosion of were very attractive: “For the past four Lehman Brothers in 2008 lay an years investors have sought a safer Hopportunity to profit from cor- alternative to equities, while deposi- porate bonds. And for those who tors have sought a higher return than weren’t busy stocking up on water, those on offer from money market guns and canned food, corporate bond accounts, as interest rates look set to funds have proved an invaluable remain ‘lower for longer’ – much of hedge against volatile and broadly this money has gone into the corpo- weak equity returns and inflation’s rate bond market via Isas.” cut creeping decimation of their wealth. Hindsight is a wonderful thing and TAKE COVER betting on corporate bonds didn’t Besides the diversification, there are come without risks – and it still does- tax advantages to shelter your corpo- n’t. Although Andrew Wells, chief rate bond fund under an Isa wrapper. investment officer of fixed income at Witcombe says: “Whereas Isa man- Fidelity, points out that “high-quality agers can’t reclaim the 10 per cent tax investment grade corporate bonds can credit on equity dividends, income offer many of the characteristics once and growth on bond funds is all tax associated with sovereigns”, as free in an Isa.” Although these tax your SA Evolve’s Jason Witcombe cautions: breaks may not make much differ- “Bonds can be low risk if they are high ence over one year, he says the com- quality and short dated but they can pounding factor of this tax efficiency carry a huge amount of risk too – if can really add up in the long run. The countries can go bust, so can compa- restrictions come in the Isa allowance nies.” As John Anderson, fund manag- – £10,680 per person for the tax year er of JP Morgan’s sterling corporate 2011-12 – and of course the fees that bond fund, notes: “The collapse of you charge your fund managers. Lehmans in 2008 saw many bond The $1m question is: will corporate investors lose money as bond prices bonds continue to rise? Wells argues fell sharply, even though interest rates that many companies are now in a bet- were falling sharply (usually support- ter position than their governments: fees ive of bond prices).” Although an “They have kept their cost bases under exceptional year, Anderson acknowl- control; they continue to have access edges: “With bonds issued by Icelandic to bank lending, even if terms have banks also defaulting, some bond become tighter, and they have actively funds fell as much as 30 per cent dur- managed their own refinancing needs ing that year – hardly the haven that in the past two years to protect them- bond funds are perceived as being.” selves from this kind of volatility.” Of course, losing 30 per cent is bet- Anderson notes: “With interest rates ter than losing everything. Danny Cox set to remain at these very low levels of Hargreaves Lansdown notes that an for the foreseeable individual corporate bond relies on future, corpo- Our Self-select Funds ISA has no quarterly admin fee the strength of the company that rate bonds issues the bond, so if this company look set to If you want to invest your ISA allowance in funds, then this could be just what you’re goes bust the investor may suffer large remain losses. However, “with a bond fund well looking for. We have over 1,800 funds for you to choose from, outstanding customer there are typically over 100 different supported. service – and you can apply online in a matter of minutes. holdings providing more security Although he should one company cautions that What’s more, we’ll even cover the cost of transferring your ISA from another provider, fail.” “the market is not up to a maximum of £300 (conditions apply). “In the after- without risk and math of the any further crisis in Please note that tax allowances depend on your individual circumstances, and ISA Lehman’s collapse the Eurozone could see the benefits could change in the future. The value of investments and the income from in 2008” says prices of bonds issued by Anderson, “the yields European companies – them can fall as well as rise, and you may not get back your original investment. on most corporate most notably banks – fall in value.” bonds rose (and Finance 101 teaches that interest the prices of rates tend to have an inverse relation- these bonds ship with bond prices. Although rates Find out more on 0845 61 85 252 or at share.com/funds-isa fell) sharply don’t look like budging any time as markets soon, if the expectations of deflation feared a total don’t materialise, governments might collapse in be forced at some point to push rates The Share Centre Limited is a member of the London Stock Exchange and is authorised and regulated by the the global econ- higher, especially if voters revolt Financial Services Authority under reference 146768. The Share Centre, PO Box 2000, Aylesbury, Bucks, HP21 8ZB. omy.” However, against the continued redistribu- he says that once these tion of wealth from savers to fears proved unfounded, debtors. 30 CITYA.M. 26 JANUARY 2012 Lifestyle | Technology Please wake me up when Apple does something wrong

ouncing a ball against a wall is record profits. Bounce bounce bounce. Samsung may be vying with Apple for more iPads than HP sold PCs. fun. Doing it a hundred times is It regained its position as the world's smartphone dominance but the market is This year we’re going to see new ver- still fun. But bouncing the same most valuable company after reporting growing to accommodate both of them, sions of the iPhone and iPad (see below), Bball against the same wall for profits of $13.1bn (£8.38bn) in the last rather than squeezing either. While the inevitably fuelling another surge in sales. years on end can get a little repetitive. quarter – more than double the same UK and the US are coming close to matu- Apple has barely dipped its toe in the TV Finding creative ways to dress up the period last year. It beat Wall Street esti- rity (more than half of UK adults own a market but it has still cast a shadow over words “Apple,” “record” and “profits” is mates by 30 per cent. It shifted 37m smartphone, only slightly more than their the entire industry, with rumours of a like bouncing that ball. For a long time the iPhones in the last quarter alone – one American cousins), fast-growing markets stand-alone set flying after comments in ball had Steve Jobs’ face on it. When Tim for every adult in the UK. like China are falling over themselves to Steve Jobs autobiography. If it can do to Cook’s appeared in its place, people dared Its margins are insane. Its quarterly get hold of iPhones. Literally – police had the (somewhat stagnant) TV market to think the ball might pop, or at least fly profits came from sales of just (albeit to cordon off the Beijing Apple store over what it has done with phones and GEEK SPEAK off in an unexpected direction. Maybe very loose definition of the word “just”) safety fears, prompting enraged fanboys tablets, we could be about to see some- we’d get to add a “falls” or “drops” or $46.3bn. To put this in context, to hurl eggs at it. thing pretty special. @steve_dinneen “tumbles” or “plummets” into the mix. ExxonMobil’s $10.3bn third quarter prof- Its tablet business is even more aston- It looks like that ball is going to keep This week’s results put paid to that. Apple its came from sales of $125.3bn. ishing. In the last quarter Apple sold bouncing for some time. My arm hurts. How we’ll waste our time this year

Steve Dinneen takes a look at the most eagerly awaited up-and-coming gadgets, asking what we can expect and when we might see them

SONY PLAYSTATION VITA still don’t know the full Expected: 24 February specs yet. It features an Price: £280 with 3G innovative (or downright bizarre, depending on where Sony’s long-awaited portable console you stand) tablet-come-con- is almost upon us. We now know it trol-pad that will function as features both a touch-screen (expect- an extra screen while playing ed) and an innovative touch-sensitive with the console and a stand- rear (similar to the one that failed to alone device when you are out materialise on the iPhone 4), mean- and about. Nintendo has won ing you can control the system with people over on wacky ideas in swipes of your finger without get- the past (the motion-sensitive iPHONE 5 SAMSUNG GALAXY S 3 ting in the way of the action. It has first generation Wii seemed out- Expected: September Expected: To coincide with the iPhone two stick controllers as well as a D- landish at the time) but it will Price: Will depend on your contract Price: About the same as the iPhone pad and all the trimmings of a high- face a challenge to convince its end smartphone, including GPS, market that this is the future face The year wouldn’t be complete with- Samsung is the biggest smartphone front and rear cameras and 3G capa- of gaming. out an update to the ubiquitous retailer in the world and the Galaxy bility. The software seems to borrow iPhone. Critics may have whined S II is vying with the iPhone for the heavily from Nintendo’s 3DS, with that the 4S wasn’t enough of a top-spot. Its next update is eagerly cute bubbles and social games, seem- iPAD 3 change from the previous model awaited. The Android device will ingly aimed at younger gamers. Expected: Late Spring or Summer but that hasn’t stopped it selling run the latest version of Google’s Price: Probably near the £400 mark out across the world. One rumour Android operating system, Ice is that the iPhone 5 will respond Cream Sandwich and is likely to WII U Probably the most eagerly awaited of with a complete design overhaul, feature a new, more powerful Expected: Summer this year’s gadgets is, inevitably, with an ultra-thin aluminium processor, making it at least 25 per Price: Somewhere around £400 made by Apple. The next generation crisper screen based on Apple’s back and much svelter appearance. cent faster. The rumour mill sug- iPad is a case of “when” rather than Retina Display, and access to Siri A bigger screen has been gests it will be released in time to go Nintendo was the first manufacturer “if”. The question is, what can Apple voice recognition, as seen on the long-mooted and an innovative head to head with the iPhone 5. If to announce a new console as the add to the last one? Expect a faster iPhone 4S. One popular rumour is display featuring round pixels anyone can steal Apple’s thunder, current crop reaches its natural sell- processor (possibly a quad-core A6 that the iPad 3 will feature 3D capa- could be on its way. Basically, nobody it’s Samsung. by date. The Wii U is already contro- chip), and better cameras front and bility, which is about as likely as it has the faintest idea what Apple versial, and we rear. Other racing certainties are a coming with wheels and an engine. are planning.

The Sony PlayStation Vita (above), the Wii U (right) the Samsung Galaxy S 2 (top left), the iPhone 4S (top middle) and the iPad 2 (top right)

32

from 1 to 9 to solve Sudoku thispuzzle. tricky numbers the all contains block 3x3 each and column row, each Place thefrom 1 numbers to 9 in each empty cell so that each SATELLITE & CABLE TERRESTRIAL   QUICK CROSSWORD M MATHS NAB LAST ISSUE’S S E SPREE ABASE SCONE INEXACT I SOLUTIONS Lifestyle |TV&Games BBC1 G orGolf Tour PGA Golf Tour European Golf Tour PGA Live 6pm 3 SPORTS SKY 4.30am-5.30am 3.30am 2.30am 1am Access Total NFL: 10pm Club Rugby The 7pm 2 SPORTS SKY Special Football 8.25pm 1 SPORTS SKY 10pm Nations 6.30pm EUROSPORT BRITISH Greatest Cricket 10.45pm 10.35pm 10.25pm 10pm 9pm kigWeatherview Skiing 2.50am British of Best Bikers’ Hairy Countryfile – 11.45pm 8pm 7.30pm 7pm 6.20pm 6pm Roads Ride? a for Taken Fares: Train Zone:      O C R E Panorama oaDlRyFootball Rey Del Copa aln u Special Cup Carling uoenTu Golf Tour European h n Show One The Crimewatch B News BBC CHOICE 3.35am-6am H D V IMATE AN V ieo u Lives Our of Time Poker B News BBC 11.25pm   9pm inZn:BiansKiller Britain’s Zone: Sign aln u Special Cup Carling 10.30pm ieo u Lives Our of Time ieCp e Rey Del Copa Live ieArc u of Cup Africa Live atnes B News BBC EastEnders: hsWeek This 11.55pm-6am B odnNews London BBC rmwthUpdate Crimewatch einlNews Regional usinTime Question 2.05am CLOWN N SE I RA ETHOS E SCALD E A SUDOKU 1.05am 11pm iueSkating Figure     Earthflight 9pm N R C S ART Football’s Ringside 12am aln Cup Carling Tennis: 11pm inZone: Sign 12.30am 1am-4am B News BBC 12.35am inZone: Sign R R S Ringside I    COFFEE BREAK ieTest Live 11pm Ringside 8pm 8pm    Sign Copyright Puzzle Press Ltd, www.puzzlepress.co.uk 1 86 9 8 9 2 3 3   1 1 47 8 25 2 3 3 5 4am-6am 1.20am 12.20am Brain Your Meet 2011 Lectures Christmas 11.20pm 10.30pm Buzzcocks 10pm 9pm Discovery 8pm British 7pm Journeys 6.30pm 6pm B2ITV1 BBC2 ieadKids and Wife 5.10am-6am 4.20am cn Investigation Scene Minds Criminal Extra 7.45pm). (Kick-off Lazio v Milan AC Goal! 5am-6am Basketball NBA 12.30am Magazine Cup World FIS 2012 Pass Press Basketball 7pm LIVING SKY Goal! 6.45pm ESPN Unforgettable 9pm Over Is Weight The Virgin: Stone ae e n Mats and Set Game, Open Australian KAKURO 9 8 9 2 7 71 3  6 9 8 9 2 2 11 71 5 rmnlMinds Criminal h igs Loser Biggest The ar ies etof Best Bikers’ Hairy 11pm 7.45pm ui,Rsi h West the & Russia Putin, Eggheads: ao or:AGolden A Hoard: Saxon 10pm ee idthe Mind Never 171 9 7 7 5 B News BBC rs as2012 Pass Press ohn oDeclare to Nothing 9.45pm ra rts Railway British Great B Action NBA 1 1 68 6 68 8 2 3 5 oa Institution Royal B erigZone Learning BBC Bowls esih:Weather Newsnight:    M Supercross AMA 4am olShow Goal f h Ball the Off 9 9 9 52 3 er Springer Jerry ieCpaItalia: Coppa Live 11pm 3.30am 1am 1 4 4 6 2 3 3 5 3.30am F Unleashed UFC 12am-12.30am 12am SNKicks: ESPN 3.35am 4 9 8 9 9 7 3 7 2.40am S:Crime CSI: Bones 8pm 1am Bones 11.30pm Freestyle 10pm 10.30pm FIBA 7.15pm 45 Close Live 12am – separate block. a in be must it but column, more than once in a row or digit may same The occur ablock. in twice digit same the use not must you and 1-9 digits the use only You can it. of left the to or above box the in total the to up adds block each that so grid the Fill My is at least one nine-letter word in the wheel. the in word nine-letter one least at is There word. every in once used be only can letters or more, all the contain must central and letter proper nouns. Each word be must of three letters or words foreign plurals, be may which of none ten minutes to find as many words as possible, have you Wordwheel, the in letters the only Using KAKURO The nine-letter word was word nine-letter The WORDWHEEL WORDWHEEL ARTICHOKE eeyKl Show Kyle Jeremy Nightscreen Tonight Time: Payback Headlines News ITV Zone; 12.05am 11.35pm Show 10.35pm 10.30pm 10pm 9pm 8.30pm 8pm 7.30pm 7pm 6.30pm 6pm Engagement Theory Bang Mother Your Met 7pm E4 News Good Howard’s Hands Their in 1.30am Dad! Guy Family News Good Howard’s EastEnders 9pm Hands Their in Life Your Doctors: 7pm THREE BBC o e orMother Your Met I How Mother Your Parents Suspicious 4.30am-5.30am of Crisps Packet a and Lager of Pints h i agTheory Bang Big The Night Quiz Moyles’ Chris Comedy Luxury Endings 12.30am Hollyoaks Gear Top titySoulmates Strictly Emmerdale tra Law Eternal Tonight London Emmerdale 3.30am ITVNewsatTen uirDcos orLife Your Doctors: Junior 10pm abc ie Tonight Time: Payback aeM Out Me Take T News ITV ooainStreet Coronation SUDOKU h aeDebate Late The h oahnRoss Jonathan The odnNews London 11.45pm 10.30pm 4.35am-5.30am 9pm 9.30pm 8.30pm 8pm 2.30am titySoulmates Strictly olFielding’s Noel o e Works Sex How 7.30pm 10.30pm u,Sxand Sex Sun, 8pm HowIMet Junior American 12.20am 3am 11pm 1am Russell 3.30am Happy ue of Rules h Big The 29 27 23 19 10 01 9 13 10 330 13 Russell o I How 6 10pm 11.20pm 3am 14 The 16 12 12 Two          63 26 The 9 ITV    28 17 15   28    6 3 5.10am-5.55am 4.15am Britain Arthur’s King AD: Britain 3.05am Drowning 2.25am Wanted Most Britain’s Hunting 12.30am Acts Random Camera on Caught Man 9pm Location 8pm 7.55pm 7pm 6.30pm 6pm CHANNEL4 2am edis Catch Deadliest Ships Greatest Britain’s Dealers 7pm DISCOVERY Pickers American Detectives Sea 3am Truckers Road Ice Andes The Roads: Deadliest Men Andes The Roads: Stars Pawn 7pm HISTORY aresMsieSpeed Massive Barrie’s Mythbusters Dealers Wheeler Greek Engagement of Rules Night Quiz Moyles’ Chris Comedy Luxury Fielding’s 4.45am-6am 12.50am 39          16 15 10pm 8 CHOICE 11pm ls fteGods the of Clash rti’ raetShips Greatest Britain’s Mythbusters Alaska in Mounted hne News 4 Channel     h Simpsons The oain Location, Location, 11 4am G 8 E otBidnso Britain of Buildings Lost e h Picture the Get otato on Man Young a of Portrait 9pm 4thought.tv     at Paramedics Party Hollyoaks 42 2.35am Scrubs aa’ Tsunami: Japan’s anStars Pawn 22 14 16 Wildfire          9pm 11.30pm 4.40am c Pilots Ice Switched h Restoration The 10 18 N 11     5am-6am I Countdown 1am 3.50am 1.45am R Deadliest IRT i Shooter Six 11.25pm 10pm 2am 8pm 19 12 I 7 c Pilots Ice 3.15am 17 Chris Coppers 11 3.15am 4am 12am 10pm u Men Mud 11pm Wheeler 7.30pm Mud 2.55am O T 33 18 Noel 2.10am 1.30am 1am Deep 3am IRT 12 15 4 4 R L CHANNEL5 neatv gaming. interactive 12am 11pm Side the on Bit 10pm 9pm Update News 5 Daredevils: idChallenge Wild 5.35am-6am 5.10am iksQuest Nick’s 8pm Update News 7pm 6.30pm 6pm 3.50am o’ ogtteLyrics the Forget Don’t Catwalk Project 2.40am otg Hell Hostage Hunter Bounty Angeles Los Dogs dead. found is diver 8pm SKY1 Pregnant Unit Death Surviving Pregnant Was I Know 8 Plus Kate and 7pm HEALTH & HOME DISCOVERY Baby Story US Supernanny 2am Seconds 5.30am-6am 12am ruaUnit Trauma uennyUS Supernanny aaiFv-:Adeep-sea A Five-0: Hawaii uligteIeHtl 5 Hotel: Ice the Building 10pm eert i Brother Big Celebrity oeadAway: and Home CHOICE 5am-6am tsAlAotAmy About All It’s ueCsn:Live SuperCasino: 18 11 10 9 8 1 ACROSS 23 22 21 20 15 13 eert i Brother’s Big Celebrity os Doctor House HouseBusters odWars Road 5Newsat6.30          1am intKo Was I Know Didn’t I 4.45am Implied (5) Implied Atmosphere (3) (5) Ghana of Capital (5) tutus for Fine net used (9) Exactness Enchantress (5)Enchantress (5) impurities of Rid controls (9) heartbeat Implanted device that (5) abook of Leaves completion (5) before Terminate (3) Mary Virgin the ___ Will (5) Stella 12am 1.50am Michaela’s etoe in Destroyed QUICK CROSSWORD uvvn Death Surviving 1am ol’ Greatest World’s   4am 9pm 5.10am-6am 11pm rnigHome Bringing Maria 3am 11pm o the Dog 9pm yHoliday My iksQuest Nick’s 4.20am 8pm Baby A Fringe Didn’t I 4.15am 10pm Trauma , prayer to to , prayer NCIS: Mad Jon   VPICK TV obnssin n aejumping. Base and skiing combines who man a plus climbers, and kayakers white-water including day, every death cheat who Thrill-seekers 8PM CHANNEL5, DAREDEVILS GREATEST WORLD’S children. their and themselves for home a into Oxfordshire rural in brickworks Victorian derelict a transform teacher a and bursar school a helps Clarke George 9PM CHANNEL4, MAN RESTORATION THE Coast. Gold the patrolling lorikeets rainbow and Himalayas the passing cranes demoiselle Australia,featuring and Asia of view bird’s-eye A 8PM BBC1, EARTHFLIGHT 18 19 19 17 16 14 12 7 6 5 4 3 2 DOWN       CITY Knave (5) Dark reddish-brown (5) with milk (5) Espresso coffee smell (5) Distinctive gun (3) Israeli submachine- Ailing (3) of (5-4) things multitude Confused affairs (9) national or international leader in Respected ___ Wilde, dramatist (5) (5) Acute Deceive (5) (5) object Historical A.M. 26 JANUARY 2012  CITYA.M. 26 JANUARY 2012 Sport 33

SPORT | IN BRIEF

McCoy poised for comeback Panesar gamble pays off as HORSE RACING: Tony McCoy will make a return to the saddle this afternoon at Warwick for the first time since 30 December when he fractured his ribs and punctured a lung in a fall at Taunton. McCoy, the 16-time champion England prosper in spin city jockey, will ease his way back into action by partnering Nicky Henderson’s Key To The West in the bumper. “I would have

▲ liked to have come back sooner, but I CRICKET wouldn’t have been able to. I punctured BY JAMES GOLDMAN SECOND TEST my lung and broke ribs and it was only just over three weeks ago,” he said. WHETHER it was by design or trig- DAY 1: PAKISTAN 256-7 gered by unfortunate circumstance, Deng upbeat on Olympic chances England’s change of tack in Abu OLYMPICS: Chicago Bulls star and Dhabi may well prove to be the turn- The Toss: Strauss calls wrong and Great Britain forward Luol Deng insists ing point in another tantalisingly Misbah decides Pakistan will bat he is determined to overcome a ligament poised series involving Andrew first. Panesar replaces the injured injury in his wrist in time this summer’s Strauss’s box office side. London Games. “It could always be Last minute U-turns based on Tremlett for England worse. Injuries happen,” said the 6ft 9in instinct are far from the modus 26-year-old. “But I’m very confident operandi of an England regime built 18.3 Overs: Taufeeq shoulders that I’ll be fine. And I feel like without on meticulous preparation and stu- arms to a quicker Swann delivery the surgery I’ll be fine.” dious analysis. But the call to reinstate wild card and sees his off stump uprooted Hammers bid £7m for Jelavic Monty Panesar, rather than select FOOTBALL: Championship leaders West Steven Finn as a ready made replace- 23.5 Overs: Hafeez, like his open- Ham have underlined their determina- ment for the stricken Chris Tremlett, ing partner, misjudges an arm ball tion to make an instant return to the dispelled the notion that head coach Premier League by making a £7m bid Andy Flower had become too set in and is clean bowled by Panesar for Glasgow Rangers striker Nikica his ways. Jelavic. The Croatia international, who Panesar bowled with impressive 36.2 Overs: More stump carnage has scored 30 goals for Rangers, made control in tandem with Graeme as Broad gets one to sneak through the switch to Glasgow from Rapid Swann, as England were rewarded for Vienna in 2010 and is also being tracked gambling on a four-man attack com- the defences of Younes, who was by Liverpool. prised of two seamers and two spin- playing horribly across the line ners for the first time in nine years. Wasps sign Russia duo The 30-year-old, winning his 40th 40.2 Overs: RUGBY UNION : Wasps have signed Test cap and first since the summer Broad homes in on Russia international hooker Vladislav of 2009, displayed understandable Ali’s timbers and the furniture of a Korshunov and No8 Victor Gresev until nerves early on and when, with a hint Pakistan batsmen is disturbed for a the end of the season. of nostalgic familiarity, he dropped a fourth time simple return catch off Mohammad Hafeez in his eighth over, Flower must have wondered whether he had 78.6 Overs: Shafiq aims to hit made the right call. Swann out of the ground and into Results The Zimbabwean need not have the surrouding desert. He looks far doubted his own judgement – the :8IC@E>:LGJ very next delivery saw Hafeez, who Panesar took 1-91 from 33 overs on his first Test appearance since 2009 Picture: GETTY from clever when given out LBW C`m\igffc%%%%%%%%%%%%%%%% (  ) DXe:`kp%%%%%%%%%%%%%%%%%%%%% (  ) >\iiXi[+( g\e #9\ccXdp.+ ;\Afe^*(#;q\bf-. had battled his way to 31, play back to on review  8kk1++#,0' a quicker ball and lose his off bail. them forward as well, so you have to 3-23, while Anderson was unlucky to 8^^1*$)% Panesar bowled 33 overs and 15 vary it and keep them guessing.” end wicketless from 18 overs, but this 85.6 Overs: Akmal is sent packing :I@:BYi Yk )+  Lancaster won’t stop wing performing trademark celebration BE`j_`bfi` Age -$*-$*-$(%Nfd\eËjJ`e^c\jHlXik\i$ SCOTLAND coach Andy Robinson has ]`eXcj1 + DJ_XiXgfmX Ilj Yk<DXbXifmX Ilj -$) fanned the flames ahead of next -$*# ) GBm`kfmX :q\ YkJ

▲ ;flYc\jHlXik\i$]`eXcj1CGX\j @e[ IJk\gXe\b :q\  RUGBY UNION tion with Chris Ashton and he is des- outlaw the swallow dive, however, he week’s Six Nations opener by expand- Yk (' <9lkfiXZ LJ8 9JfXi\j 9iX -$+.$- .$+ # perate to play well for England,” said did lace his words with a warning ing on his claim that England players ) DD`iep` 9ci ;E\jkfi :Xe Yk () J>feqXc\q BY FRANK DALLERES Lancaster. that players who indulge in behav- have been guilty of arrogance. D\o :BXj >\i -$(-$. +$. -$)%Nfd\eËj;flYc\j ENGLAND head coach Stuart “We talked about behaviour and iour he sees as selfish or damaging to Former Red Rose boss Robinson, J\d`$]`eXcj1 (( JXa[fjfmX 8lj  from performing his trademark swal- ing. who take energy out of a earlier this week. 9JfXi\j 9iX Yk8Jg\Xij LJ8 D=pijk\eY\i^ Gfc  low dive. “I think he and I had a team,” added Lancaster, “The importance of what I stated is -$*-$)%D`o\[;flYc\jHlXik\i$]`eXcj1IM`eZ` @kX ; Former Saxons boss Lancaster, really good conversation who has been placed in there were two or three who I felt dis- 9iXZZ`Xc` @kX Yk . 8?cXmXZbfmX :q\ 8$Lc$?Xh whose first match in charge is next about what he wants to charge until at least the respected Scotland and other teams in Hli\j_` GXb -$(.$,# - JD`iqX @e[ D9_lgXk_` week’s Six Nations opener against get out of being an end of the championship. the way they conducted themselves,” @e[ YkC?lY\i LJ8 :=c\d`e^ >Yi .$- .$, -$)% Scotland, has drilled his new charges England player, and I gave “An issue starts when he said yesterday. in the importance of showing respect him a pretty frank assess- people take energy out of a “[Ex-manager] Martin Johnson had KF;8PËJ;@8IP to the opposition. ment of what I thought team through ego or irresponsi- 10 wins in 13 and I think it under- :I@:B

▲ Liverpool return to Wembley for the first time FOOTBALL BY JAMES GOLDMAN since 1996 on a night when Anfield passion

WEST London rivals QPR and Chelsea extinguishes Manchester City’s Carling Cup hopes have issued a joint warning to their fans reminding them of a zero toler- ance stance towards discriminatory “Craig was unbelievable. If Man language ahead of Saturday’s hotly LIVERPOOL City have anyone else like that anticipated FA Cup fourth round clash 2 they don’t want to keep, they at Loftus Road. know where we are,” said Rangers defender Anton Ferdinand Dalglish, who re-signed Bellamy is due to face Chelsea counterpart MAN CITY 2 on a free back in August. “It’s fan- John Terry for the first time since the tastic to have him here and he’s a England skipper is alleged to have Liverpool win 3-2 on aggregate great pro. He loves the club.” made racially abusive comments to ▲ FOOTBALL Gerrard, meanwhile, who was him during the incident packed delighted that a lifetime’s ambi- BY JAMES GOLDMAN Premier League clash between the two tion to skipper his boyhood club sides last October. LIVERPOOL manager Kenny at Wembley will, fitness permit- Their likely encounter, which will Dalglish invited his Manchester ting, become a reality, agreed the come four days before Terry is due to City counterpart Roberto Mancini much travelled forward was appear at West London Magistrates to give him a call if he fancies dis- deserving of significant praise. Court where he will deny a racially carding any more players of Craig “Craig was the difference,” he aggravated public order offence, is Bellamy’s calibre, after the said. “His pace was always a likely to make for a combustible Welshman capped a scintillating threat and we know that if a atmosphere and has prompted both display with the goal that chance falls to him he can finish. clubs to call for calm. ensured Liverpool’s place in next It’s a big thanks to him.” The statement from Tony month’s Carling Cup final. Without striker Mario Balotelli, Fernandes, the QPR chairman, on That the Merseysiders are able who served the first match of a behalf of him and his Chelsea counter- to celebrate a return to Wembley four-game ban for violent conduct part Bruce Buck, said: “We have dis- for the first time since 1996 is after his club decided not to cussed the issues surrounding this largely down to Bellamy, who appeal a Football Association weekend’s FA Cup fourth round tie at excelled against his former charge, took the lead through an Loftus Road and we are both in total employers and struck the decisive unlikely source when De Jong’s agreement that abuse and discrimina- goal 16 minutes from the end in speculative 25-yarder curled up tion has no place in football or society. front of a delirious Kop. and over Pepe Reina. “Both clubs enjoy fantastic support. Liverpool’s path to the final Joe Hart frustrated Liverpool However, we would remind fans that was complicated by Nigel de throughout but even he wasn’t while we want to hear their passion, Jong’s goal on the half hour, but able to get near Gerrard’s second it’s a fact that hatred and abuse is not Steven Gerrard’s penalty five min- successful spot kick of the tie what being a fan of QPR or Chelsea is utes before the break calmed the shortly before the break. about. jitters that resurfaced once Edin Extra time looked on the cards “The clubs will work together with Dzeko leveled the tie on aggregate when the England goalkeeper’s the police to ensure that anyone using midway through the second heroics were complemented by discriminatory or inflammatory lan- period. Dzeko’s slick equaliser. guage is identified and that the The last word, however, went to But a pulsating match was strongest possible action is taken.” Bellamy, who was sent out on denied the extra 30 minutes it Mancini allowed Chelsea manager Andre Villas-Boas loan by Mancini to Cardiff – deserved when a slick inter- Bellamy to join last week insisted he would have no Liverpool’s opponents at change involving Dirk Kuyt and Cardiff on loan from qualms about selecting Terry this Wembley next month – last sea- Glen Johnson combined to pres- City last season weekend, while Rangers defender son and deemed surplus to ent Bellamy with a chance he was Danny Gabbidon confirmed requirements in the summer. never likely to pass up. Picture: GETTY Ferdinand is determined to feature.

Sharapova fears Murray serves up semi-final nemesis Kvitova

but finds fault with technique FOURTH seed Maria Sharapova admits she is daunted by the prospect of facing in-form Petra Kvitova, her Wimbledon final conqueror, in the ▲ TENNIS him in last year’s final, ruthlessly before yesterday’s meeting, and it Australian Open last four today. despatching another victim in fifth showed as his resistance waned the Sharapova set up a semi-final BY FRANK DALLERES seed David Ferrer yesterday, Murray closer his opponent got to a fifth suc- against second seed Kvitova with a BRITAIN’S Andy Murray has vowed to knows he must improve. cessive grand slam semi-final. routine 6-2, 6-3 victory over Ekaterina repair his faltering serve when he “It was a good match, a lot of fun There he will meet Djokovic, after Makarova, who eliminated Serena seeks revenge over world No1 Novak points, but I need to serve better,” he the Serb’s progress ensured they, Williams earlier this week. Djokovic in tomorrow’s Australian said, after beating Nishikori. Roger Federer and Rafael Nadal – the She said: “I’ve lost to her the last Open semi-final. “I didn’t serve particularly well but men’s tour’s big four – will occupy couple of times, including obviously the Fourth seed Murray continued his the returning was good so that was a the last four places of a grand slam big one at Wimbledon where she serene progress at the year’s first positive. My game’s been getting bet- for the third time in a year. played really well. I think she’s the one grand slam with a 6-3, 6-3, 6-1 quarter- ter each match, I’m moving better Djokovic defied physical impair- to beat right now, she is playing the final triumph over Japan’s Kei and I’m feeling fresher” ment to beat Ferrer 6-4, 7-6 (7-4), 6-1 best tennis of her career, coming off so Nishikori. Murray’s easy early rounds aided and stay on course for a fourth grand many wins last year.” But the one-sided scoreline masked him against Nishikori, the first slam title in five attempts, having Kvitova, who could rise to world a rustiness in the Scot’s game that Japanese player to reach the seemingly hurt his hamstring and No1 status if she reaches the final, saw him succeed with just 44 per cent Melbourne last eight for 80 years, suffered breathing problems. “I felt struggled to find her best form as she of first serves and make three double who appeared to tire as the match my nose was closed a little bit,” he laboured past unseeded Italian Sara Murray faces Djokovic in the Australian faults. wore on. The 24th seed had been on said. “I just wasn’t able to get enough Errani 6-4, 6-4. Open semi-finals Picture: ACTION IMAGES With Djokovic, the man who beat court four hours longer than Murray oxygen.” 35 ONE SWALLOW (DIVE) DOES NOT A SINNER MAKE ASHTON GIVEN GREEN LIGHT TO KEEP UP CELEBRATION: PAGE 33

MATCH ANALYSIS I don’t need to dodge tax BY JAMES GOLDMAN on £30k, Redknapp said KEY MOMENT Refereeing controversy appears to be fol- lowing City around of late and they can jus- ▲ FOOTBALL tifiably feel aggrieved at the award of the BY FRANK DALLERES first half penalty which robbed them of the momentum. Quite how Micah Richards was TOTTENHAM manager Harry supposed to prevent the ball hitting his arm Redknapp told a reporter he had no Lancaster confirmed he wants the job on a after he initially blocked Daniel Agger’s need to dodge tax for the sake of permanent basis Picture: ACTION IMAGES shot with his leg is anyone’s guess. £30,000 and declared: “Everything I do, I do above board,” a court heard yesterday. GAME STATS Redknapp said journalist Rob Beasley was “barking up the wrong Lancaster: I LIVERPOOL 2-2 MAN CITY tree” as he questioned him about pay- ments totalling £189,400 to an off- 13 ATTEMPTS ON TARGET 6 shore account in his dog’s name, in a 3 ATTEMPTS OFF TARGET 2 tape recording of an interview played may rotate to jurors. 12 CORNERS 2 The favourite to succeed England 44% POSSESSION 56% head coach Fabio Capello also threat- 2 YELLOW CARDS 1 ened in the interview to sue Beasley captaincy 0 RED CARDS 0 and the News of the World if they printed claims that Redknapp had 7 OFFSIDES 1 failed to pay tax on the sums.

Beasley, now of the The Sun and ▲ appearing as a witness for the prose- RUGBY UNION DUGOUT VIEW cution on the third day of the high- BY FRANK DALLERES profile trial, told Southwark Crown I think it was not a penalty for Court: “Once it was published there ENGLAND interim coach Stuart Liverpool“ and was for us. This changed was not a single letter. Not a whisper.” Lancaster has confirmed his inten- the game. Richard touched the ball on his Redknapp denies two charges of tion to apply for the job on a perma- leg, for this reason it was not a penalty. tax evasion relating to the payments, nent basis, but admits there is less There is a referee on the pitch. It is which he has said were legitimate certainty over who will captain the enough. It was a penalty on Dzeko for us, bonuses he was entitled to for selling team during the Six Nations. incredible, clear. We did well, scored, we England forward Peter Crouch while Lancaster, who was handed the Portsmouth manager. reins following the resignation of made some mistakes and conceded a stu- Milan Mandaric, the former Martin Johnson in November, faces pid goal. Portsmouth chairman and Redknapp denies two charges of tax evasion Picture: ACTION IMAGES illustrious competition for the task of –” Man City boss Roberto Mancini Redknapp’s co-accused, who paid the leading England into a home World money into the 64-year-old’s Monaco what’s going to happen Rob and have told the Stevens Inquiry in 2006. Cup in four years’ time. HSBC account “Rosie 47”, also denies you’re all barking up the wrong tree.” John Black QC, for the prosecution, He has less than three weeks to for- TALKING POINT wrongdoing. Earlier the court heard how east told jurors explanations put forward mally submit his CV to City head- Roberto Mancini will win no sympathy for In the telephone interview from Londoner Redknapp, the most suc- by Redknapp and Mandaric were hunters Odgers Berndtson, who have complaining of a lack of squad depth, but 2009, the day before Redknapp’s cessful current English manager, told “contradictory, inconsistent and lack been hired by the Rugby Football judging by Stefan Savic’s recent displays, Tottenham were due to face football corruption investigators that credibility”. Union to carry out the search, but perhaps he should have shown a greater Manchester United in the Carling he felt he was being persecuted for Former West Ham and insists he will definitely apply. interest in Gary Cahill. For Liverpool, a Cup final, he was heard to ask his Cockney roots. Southampton manager Redknapp is “The job has been advertised. It’s a night of celebration should also be met Beasley: “Do me a favour. I tried to “If there is any mud to be thrown, I accused of concealing his “Rosie 47” good job and I am sure there will be a with an acknowledgement that a Carling nick £30,000 to save on income tax? seem to get on the end of it for what- account – named after his pet dog lot of interest worldwide and in Cup win would not alone represent a Do I need that Rob?” ever reason. A friend said to me: and the year of his birth – from HM England,” said Lancaster. sound return on over a £100m worth of Redknapp, who told Beasley he ‘Harry, I can’t believe it’s always you, I Revenue and Customs until six years “My hat will be in the ring. I love believed the money had been taxed in have dealt with you enough times. after it was opened, in 2002. The pay- working with teams and trying to investment since Kenny Dalglish’s return America, where Mandaric’s payment Your problem is your name, Harry, ments, of £93,100 and £96,300, are help players improve. The opportuni- this time last year. originated, added: “You’re going to and you have got a Cockney accent’. alleged to have been made between ty to do that at the highest level with write what you want to write and to People don’t know me and I am sick April 2002 and November 2007. England is fantastic. I haven’t applied f*** me up on cup final day. I know and tired of it,” Redknapp was said to The trial continues. yet but I will be before the 15th.” Former Italy coach Nick Mallett, Northampton boss Jim Mallinder and ex-New Zealand chief Wayne Smith are among those tipped to be short- listed for the job. Monty’s return tempers Tremlett blow Lancaster’s immediate priority is the Six Nations defence, which begins next week, and he admits the captain- cy issue remains undecided. Surrey paceman’s tour-ending injury allows England spinner to thrive on Test comeback Flanker Tom Wood’s appearance as nominal skipper at yesterday’s tour- nament launch suggests he is the pre-

▲ took three wickets apiece, but it was these things do creep in and you do sense I was making my second debut ferred choice, but his current injury CRICKET Panesar’s dismissal of need good people around you to help having been out of the team for such means Harlequins’ Chris Robshaw is BY JAMES GOLDMAN Taufeeq Umar which you get through it,” admitted Panesar. a long time.” likely to deputise for two Tests. provided the high- “There were times when self doubt Panesar earned his unlikely recall Yet Lancaster hinted that whoever FORGOTTEN man Monty Panesar light on the open- crept in, and you wonder is it ever after it emerged that seamer Chris skippers the team in their opening announced his return to the interna- ing day of a going to happen, and that is where Tremlett’s (left) back injury was seri- match against Scotland on 4 February tional fold after a two-and-a-half year match England people like Mark Robinson [Sussex ous enough to rule him out of the could be the first of many to don the absence yesterday by helping to bowl must win to retain coach] and Mushy [Mushtaq remainder of the tour and throw his armband in the coming weeks. his side into a position of strength on any hope of Ahmed, England spin bowl- own England career into doubt. “There is a spread of players we the first day of the second Test against claiming the ing coach] have been great The 30-year-old Surrey paceman’s need to work with and from there a Pakistan – and later admitted he series. in protecting my self progress has been regularly stunted leader will emerge that will represent thought his England days were “When belief. by a series of back complaints – his England as captain against Scotland,” behind him. you’re out of “It was good I didn’t appearance in last week’s first Test added the 42-year-old, who cited Panesar, representing his country the England find out on Tuesday defeat in Dubai was his first for six Dylan Hartley and Ben Youngs. for the first time since the summer of team you night [I was play- months. “Will we appoint for the Six 2009 at Test level, took 1-91 from 33 wouldn’t be ing] otherwise I Tremlett’s injury further reduces Nations and through to South Africa overs as Andrew Strauss’s side made human if you would have been England’s bowling options looking and beyond? I don’t think you can do light of losing what appeared to be a didn’t wonder up all night ahead to the third Test with Tim that. I don’t think selection or injury crucial toss, reducing the hosts to 256- if it was ever practising my Bresnan already having flown home allows you to do that. It is not a bad 7 by the close. going to hap- action in the early with an elbow injury. thing to have two or three people who Stuart Broad and Graeme Swann pen again, but mirror. In a FULL REVIEW OF DAY ONE: P33 can captain the side.”