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LOSSES CAN EXCEED YOUR INITIAL DEPOSIT ([HFXWLRQÀJXUHVUHODWHWR1RY8SWLPHÀJXUHVUHODWHWR2FW1RY BUSINESS WITH PERSONALITY BUSINESS DIAMOND FIGHTS BACK JUBILEE SIMON DENHAM THE QUEEN MARKS STANDS UP FOR THE SIXTY YEARS ON CITY P26 THE THRONE P12 Issue 1,564 Monday 6 February 2012 www.cityam.com FREE Heathrow TRUTH ABOUT BANKER PAY: flights cut amid snow

▲ ECONOMY IT’S FALLING BY TIM WALLACE ▲ BANKING Investment banks are slashing pay with perhaps worse still to come. HEATHROW airport yesterday can- BY JULIET SAMUEL This coupled with the recent whole- celled half of the 1,300 sceduled COMPANY AVERAGE CUT IMPACT sale redundancies has left morale at flights as snow and freezing temper- BRITISH investment bankers are an all time low,” he added. Bonuses atures hit Britain. braced for deep slashes to their pay Expected cut of 30 per make up the majority of the pay Despite the massive disruption at packets after a slowdown in trading 30% cent could be accompanied packet for many bankers. the UK’s busiest airport, owner BAA saw their US rivals cut bonuses by up by job cuts Tim Hedger of bank recruiter said its snow plan had worked “far to 30 per cent. Marks Sattin says that banks had better” than in previous years. It Industry insiders say that UK Affects senior investment been expected to put up base salaries claimed making a decision about bankers are looking at a pay cut of bankers; some get bonds in response to strict regulation of flight cancellations on Saturday gave 20-50 per cent – in addition to thou- 30% backed by derivatives. bonuses but because of the difficult passengers time to cancel or rebook. sands in job cuts – contrary to the Covers senior investment environment, that has not hap- Around 10cm of snow blanketed public view that the City has contin- pened. the UK in 24 hours, stranding ued to ramp up rewards through the 20- Covers senior bankers and “The expectation was that base pay motorists on major motorways crisis. traders, caps cash bonuses would rise but it’s been flat. Bonuses including the M25 and M40. Angela Knight of the British 30% at $125,000, raises average have been hit. Expect 30-50 per cent But economists said this week- Bankers’ Association (BBA) said yes- deferred pay to 75 per cent. cuts,” he says, saying that the crunch end’s snow has not yet set in and – terday that “the public commentary has badly “affected morale”. unlike the heavy fall of December has not kept up” with changes on the 30% Reduces bonuses for The cuts are likely to fall very 2010 – is unlikely to have a big ground. She slammed politicians and investment banking unit. unevenly, however: most bankers will impact on GDP. media for “sweeping the facts to one see their bonuses slashed drastically “Fortunately for many retailers side and distorting the debate”, Applies to investment while a select group of the most tal- the snow was not hugely disruptive adding that on the pay debate: “We bankers; freezes ented staff will see a far smaller during opening hours on Saturday, need to end the personal pillorying.” 25% some salaries change. “The top performers will be which of course is a crucial shopping Barclays will be the next bank to and limits some cash looked after,” says Hedger. day,” said Howard Archer, of IHS brave the storm on Friday when it bonuses to $150,000. Last year, banks announced over Global Insight. unveils full-year results, which are 120,000 of job cuts globally, a num- “It should not be enough to stop expected to show a pre-tax profit of 26% Affects pay for all ber that has only increased since most people getting to work or to £6.2bn. Pay cuts of nearly 30 per cent 33,300 employees. then. seriously disrupt supply chains by are said to be in the pipeline for its The mass lay-offs and bonus cuts stopping goods, components and investment bankers. Covers salary, bonus will also deliver a big hit to public raw materials being moved around.” With revenues shrinking due to 9% and benefits at finances as tax revenues generated Early winter snow in December new regulations and market turmoil, investment bank. by the City drop. 2010 caused British GDP to contract banks are being forced to cut pay and By way of example, Baker Tilly’s in the final quarter of the year. jobs to stay out of the red. Cut falls on staff at David Heaton says a third of the Economic output fell 0.5 per cent, Headhunters say that the cuts are 15% Deutsche’s corporate and bonus awarded to RBS chief execu- with sectors including mining and so widespread that talented City SOURCE: BLOOMBERG investment bank. tive Stephen Hester would have gone construction hit particularly hard by workers are considering leaving to the taxman if he had not waived it. the weather. bulge bracket firms in droves. than ever before,” says Kumaran “Bonuses and overall compensa- “The exchequer stands to lose The Met Office is not expecting “We are seeing more candidates Surenthirathas, front office chief for tion announced to date are 25-35 per around £360,000 in 2014 [from the heavy snow in the next week, but interested in external opportunities recruiter Eximius Group. cent down on this time last year, row],” says Heaton. says it may return in late February. Treasury tries to placate City Rival eyes £500m GlobeOp bid ▲ REGULATION of the bill will force regulators to consider if the ▲ M&A since the middle of January. costs of new rules are in “proportion” to their It is understood that SS&C will fire off a BY JULIET SAMUEL BY JULIET SAMUEL benefits. It aims to allay worries that new regu- bidding war with GlobeOp’s current suitor, THE TREASURY will try to win around critics of lators could ignore the “international competi- A NEW bidder has entered the £500m race to US private equity giant TPG Partners, if it its flagship Financial Services bill today by tiveness” of the City when imposing new rules. buy GlobeOp Financial Services, the hedge moves towards making an offer. inserting a new “proportionality” test for all But it might not placate critics: LSE’s Tracey fund services firm. A source familiar with the situation said new regulations on the City. Pierce said she hoped the bill would be US-based SS&C Technologies, a rival to any new bid from SS&C will consist of a In a last-ditch effort to stem a tide of criti- “enshrining competitiveness in our regulatory GlobeOp, said late last night that it has been “higher cash offer” than the £500m that is cism, City A.M. understands that the new version framework”. VOICE OF THE CITY: P12 performing due diligence on the company now on the table.

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Shiv Bassi Professional FX Investor Blacktree Investment Partners 4 News CITYA.M. 6 FEBRUARY 2012 Why the debate has gone all wrong

There is also an ongoing jobs blood- gone. Obviously, pay (and revenues and caused the bubble – and that a reces- bath. This correction is easily explain- profits) were too high during the bub- sion would have happened anyway, able: banks now have to hold more ble – but the system is readjusting. regardless of the proximate cause of capital and lower-yielding, liquid An even more irritating issue is the the crisis, namely US sub-prime mort- assets – this is slashing profits and absence of any economic explanation gages (themselves promoted by US gov- especially return on equity, now often of the crisis – as opposed to populist ernment agencies). below the cost of capital. The only way nonsense confusing the human-level This time, monetary policy errors to reverse this is for banks to slash manifestation of the bubble (higher weren’t purely caused by domestic cen- costs (especially pay), shut low-return house prices or City pay) with its deep tral banks – rates were driven down by EDITOR’S LETTER units and shrink balance sheets. cause. There is a long tradition in eco- a lack of savings in the West and mon- Some of this shift is due to a cyclical nomics – one which was mainstream etary manipulation in the East, and by ALLISTER HEATH drop in revenues – but much is struc- in the UK until about a decade ago, moral hazard created by promises of tural. Pay will be permanently lower in before the political establishment and state intervention. (The latter also PART of the problem in Britain today is banks (though not necessarily in commentariat suddenly forgot all that caused excessive bank leverage). that public debate is taking place in a hedge funds, trading houses and other it had learned since the 1970s – that Shockingly, this well-respected view fact-less vacuum. People have no inter- parts of finance). Shareholders will argues that booms and busts are, these that excessively low rates and other est in what is really happening to make sure this happens – they need to days, primarily caused by monetary errors by central banks were a key driv- investment bankers’ pay and prefer to make a decent return. Pay will still forces and in particular an excessively er of the bubble and bust is mysterious- ignore the regulatory revolution remain much higher than in other low cost of money and credit. ly absent from the UK debate. The across all of finance, including bank- industries – but the gap will be smaller Many classical economists believed result: lots of emotion, insufficient rea- ing, fund management, private equity, than it was at its peak, when revenues this, as does Ludwig von Mises’ son, and a confused country. trading, accountancy and insurance. per banker were artificially magnified Austrian school – this was also the [email protected] Take pay: as we report on p1, it is as a result of cheap money, bubble-era view of the monetarists, led by Milton Follow me on Twitter: @allisterheath expected to be down by 25-30 per cent rising asset prices, an artificial collapse Friedman, and the new classicals, led Starting this evening at 6pm, Jazz FM is at Barclays, 30 per cent at Citi, 26 per in risk premia and vast firm-level lever- by Robert Lucas. Today, many econo- launching its weekly Jazz in the City show, cent at Goldman Sachs, and so on. age. Most of these factors are now mists believe monetary policy errors for which I am a guest. For details, see p 14.

4th Floor, 33 Queen Street, London, EC4R 1BR Rail bonuses Tel: 020 3201 8900 Fax: 020 7248 2711 Email: [email protected] www.cityam.com Editorial Editor Allister Heath Deputy Editor David Hellier row heats up News Editor David Crow Acting Night Editor Marion Dakers Business Features Editor Marc Sidwell ▲ POLITICS MPs, cited “major asset failures, con- Lifestyle Editor Zoe Strimpel BY JULIAN HARRIS gested routes and poor management Sports Editor Frank Dalleres of track condition” as reasons for Art Director Gavin Billenness JUSTINE Greening is set to become the “poor performance of the UK rail net- Greek PM Papademos is trying to get agreement on a bailout Picture: REUTERS Pictures Alice Hepple first secretary of state for transport to work in 2011”. vote at a Network Rail AGM, as the gov- Yesterday Greening, MP for the Commercial ernment steps up its opposition to London constituency of Putney, told Sales Director Jeremy Slattery large bonuses proposed for the group’s the Sunday Politics show: “I’m going to Deadline looms in Greece Commercial Director Harry Owen senior management. go to the meeting next Friday, I’m Head of Distribution Nick Owen Greening said yesterday that she going to vote against them [but] I won’t ▲ EUROZONE three parties in his government to € will exercise her right to vote against be able to stop it from going through.” BY HARRY BANKS sign off on terms of a 130bn (£108bn) the bonuses at this week’s meeting, Even if she were to lead a successful rescue, which Greece needs soon to Editorial Statement despite admitting that it won’t prevent vote against the bonuses, the result is GREECE’S coalition parties must tell avoid a chaotic debt default. This newspaper adheres to the system of the payments being made. only advisory, Greening said. the European Union by today whether Papademos said in a statement self-regulation overseen by the Press Complaints Labour MP Tom Harris last week they accept the painful terms of a new party chiefs had agreed measures Commission. The PCC takes complaints about the editorial content of publications under the Editor’s tabled an Early Day Motion (EDM) call- Justine Greening, the bailout deal as EU patience wears thin including wage cuts as part of spend- Code of Practice, a copy of which can be found at ing for Network Rail directors to reject secretary of state for with political dithering in Athens over ing cuts worth 1.5 per cent of GDP. www.pcc.org.uk the generous remuneration packages, transport, will attend implementing reforms. But a spokesman for the PASOK Printed by Newsfax International, including a £340,000 bonus for chief Network Rail’s AGM to Technocrat Prime Minister Lucas socialist party said a number of major Beam Reach 5 Business Park, executive Sir David Higgins. Papademos put on a brave face yester- issues demanded by the Troika Marsh Way, Rainham, Essex, RM13 8RS The motion, signed by 30 Labour oppose the bonuses day as he tried to get leaders of the remained unresolved late last night. WHAT THE OTHER PAPERS SAY THIS MORNING

month from the largest US public pension fund, to change the way it RATING AGENCIES RAISE DOUBTS ON elects directors. Calpers – the RICH FIGHT IT OUT FOR TOP LONDON DUBAI ABANDONS $10BN DEBT DEXIA HEADS TO NEXT LIFE AS SCOTLAND SECURING TRIPLE A California Pulbic Employees’ PROPERTIES RESTRUCTURING FRENCH NEAR A DEAL STATUS Retirement System – has called on Demand for the best homes in Dubai’s government has walked away The French government and two XtryAn independent Scotland would Apple to allow directors to be elected London is showing no sign of letting from the $10bn (£6.3bn) debt restruc- state-controlled entities are in the not be able to count on receiving by majority voting. up, with values rising again last turing of one of its biggest conglomer- home stretch to create a new munici- triple A status, credit rating agencies month. The residential agent Knight ates, leaving creditors, including the pal lender from the remains of trou- have told the Financial Times, poten- EBA SCEPTICAL ON CAPITAL RAISING Frank said yesterday that its Prime Royal Bank of Scotland (RBS), with bled Franco-Belgian bank Dexia, but tially leading to higher borrowing The European Banking Authority is to Central London Index showed values exposure to potentially big losses. they have yet to agree on the price of costs for it if a referencum on inde- challenge a significant proportion of for top-end homes rising by 0.9 per Dubai Group, the financial services a key asset, the fate of hundreds of pendence was successful. The three the capital restructuring plans put cent overall in January. arm of Dubai Holdings, said the emi- employees, and the exact missions of leading credit rating agencies – forward by some of the continent’s rate’s Supreme Fiscal Committee (SFC) the future company. Standard & Poor’s, Moody’s and leading banks to meet tough new cap- BOARDS FALL BEHIND IN THE DRIVE TO had quit the negotiations and would Fitch – indicated an independent ital requirements, sources say. APPOINT WOMEN not inject any government cash. PEPSICO, COKE TO UPDATE INVESTORS Scotland would not automatically Britain’s biggest companies will miss PepsiCo and Coca-Cola likely will inherit the Uks top-notch rating. SABADELL SETS STAGE FOR €1.2BN a deadline to have a quarter of their US HEDGE FUNDS CAPITALISE ON show solid profit growth when they SHARE SALE boardroom positions filled by women LEHMAN COLLAPSE share their 2011 results this week, but CALPERS PILES PRESSURE ON APPLE Banco Sabadell, the Spanish lender, unless more is done to move talented It may sound impossible but one of this year could be tougher. Investors OVER THE WAY IT ELECTS DIRECTORS has begun sounding out investors female executives up the corporate the best financial investments of the want more evidence US consumers Apple faces fresh shareholder pres- about a rights issue worth up to ladder, recruiter Norman Broadbent past three years has been a collapsed will swallow pricier soda and chips. sure at its annual meeting this €1.2bn. has warned. bank – Lehman Brothers. Domestic soda sales have shrunk. CITYA.M. 6 FEBRUARY 2012 News 5

NEWS | IN BRIEF

Romney takes Nevada vote Republican front-runner Mitt Romney cruised to an easy victory in Nevada over the weekend, crushing his three remaining rivals and taking firm command of the party’s volatile presidential nominating race. With support from a broad cross- section of Republicans, Romney won by a big double-digit margin over former US THE BEST ROLES NEED House Speaker Newt Gingrich, THE BEST CANDIDATES. Representative Ron Paul and former Senator Rick Santorum. The victory was New from City A.M., we bring you the latest Romney’s second in a row and his third in ǁĂLJƚŽĮŶĚƚŚĂƚƉĞƌĨĞĐƚƌŽůĞ͘KƵƌŶĞǁǁĞďƐŝƚĞ the contests in the state-by-state battle to ƉƌŽǀŝĚĞƐ>ŽŶĚŽŶƉƌŽĨĞƐƐŝŽŶĂůƐǁŝƚŚĂĐĐĞƐƐƚŽ find a Republican challenger to President ƚŚĞ ŵŽƐƚ ƐŽƵŐŚƚ ĂŌĞƌ ƉŽƐŝƟŽŶƐ͕ ƐŽ ŝĨ LJŽƵ͛ƌĞ Barack Obama in November’s general ůŽŽŬŝŶŐƚŽŵĂŬĞƚŚĂƚĐĂƌĞĞƌŵŽǀĞ͕ŵĂLJďĞŝƚ͛Ɛ election. It propels Romney into the next ƟŵĞƚŽƐƚĞƉƵƉ͘hƉůŽĂĚLJŽƵƌsΘŐĞƚŬŶŽǁŶ͘ contests – in Minnesota, Colorado and Missouri tomorrow – on a growing wave Xstrata chief Mick Davis could face a vote of confidence if Glencore’s Ivan Glasenberg fails to improve deal of momentum. WWW.CITYAMCAREERS.COM Glencore bid talks focus on premium

▲ COMMODITIES plating a premium as low as eight per BY LAUREN DAVIDSON cent. A source close to the deal pointed MINING group Xstrata could lose out out that there has been an 11 per cent on its merger with commodities giant uplift for Xstrata shareholders since Glencore if the two companies ignore the deal was announced. Xstrata shareholders’ demands to be The details of the transaction are offered a decent premium, investors expected to be revealed on Tuesday warned last night. when Xstrata publishes its prelimi- The deal, revealed last week, could nary year-end results. see a combined company worth £50bn Under the terms of the merger, with revenues of over £110bn. Glencore – which owns 34 per cent of Xstrata chief executive Mick Davis is Xstrata – will be excluded from voting tipped to run the merged companies – on its shareholding. at least for an initial period – but some Glencore and XStrata both declined Xstrata shareholders would rather see to comment. him step down altogether. It is seen likely that the former BP Richard Buxton, head of UK Equities chief executive Tony Hayward would at Schroders, said he will ballot against become the senior non executive the merger – and vote Davis off the director of the merged group. board – if Xstrata shareholders are not ANALYSIS l Xstrata PLC given an attractive premium. City A.M. p He told , “Glencore needs 1,250 1,283.00 Xstrata – it has a higher growth rate 3 Feb and better assets. If they want to get 1,200 command of that, they should pay a control premium.” 1,150 Buxton called the the 11-12 per cent per cent speculated premium “deriso- 1,100 ry” and “unimpressive”. However, it emerged last night that Glencore’s advisers might be contem- 30 Jan 31 Jan 1 Feb 2 Feb 3 Feb As crunch time nears there’s still a lot left to be decided SO as expected, Xstrata’s share- Add two fiery personalities at holders are kicking up a fuss over the top of each company, throw the premium Glencore is offer- in competition authorities pre- ing to pay for the company, bare- sumably chomping at the bit to ly a year after blocking a similar get involved, and you’ve got a deal before Glencore’s record list- heady mix of possible delays and ing last May. hurdles. With current talks rumoured The City is desperate for a to be moving towards a premium mega merger to break the deal as low as a single digit figure, drought of recent months, but investors are unlikely to be investors should be wary of impressed – particularly as the jumping the gun when there’s share price had already jumped still so much still up in the air. 11 per cent since Wednesday’s close, before the talks were announced. BOTTOMLINE Analysis by Elizabeth Fournier 6 News CITYA.M. 6 FEBRUARY 2012 Apprentices LONDONERS FACE THE BIG FREEZE as valuable as Games: report

▲ ECONOMICS impact for the same period – £1.2bn. BY JENNY FORSYTH Chief executive Chris Jones said: “At a time when Olympics fever has THE UK economy would benefit gripped the entire country, it’s more from a million extra appren- important that Britain wakes up and ticeships than from hosting the appreciates the true value of appren- Olympic Games, according to new ticeships.” research from City & Guilds. Major companies yesterday The survey – timed for the start of pledged their support to the cam- ALEXANDRA PARK Apprenticeship Week 2012 this week paign, with BAE Systems announcing – shows that, if a million more 265 apprenticeships, over half of apprenticeships were set up by 2013, them involved in work on building Londoners came out to play yesterday as the the economic benefit would be submarines. capital woke to a blanket of thick snow. £5.57bn. That is more than the Meanwhile, Starbucks today Alexandra Park (above) was a popular spot for £5.1bn expected uplift expect- announced its first ever UK appren- sledging, while City tourists at Bankside (right) ed from the Games. ticeship scheme, recruiting up to took the opportunity to brave the cold and see City and Guilds, which 405 apprentices this year, then 65 London’s famous landmarks covered in white. provides vocational train- per month next year. The biting weather proved testing for Occupy ing in the UK, said it cal- The apprenticeships, in what the London protesters at St Paul’s Cathedral (left), culated the £5.57bn firm calls Barista Skills and who faced camping in icy conditions with sub- benefit by combining Customer Service, are open for young zero temperatures. Up to 16cm of snow the cumulative value of people over 16 years of age including swathed parts of the UK, causing traffic prob- apprenticeships to school leavers. lems and limited public transport. Motorists business between City & Guilds said politi- and train operators warned of potential fur- 2012 and cal leaders and employers ther problems today as the snow melts and 2020 –£4.37bn – are due to meet tomor- turns to ice. and the cumu- row to discuss its find- Pictures: LEON NEAL/AFP/Getty Images, Laura lative tax ings. ST PAUL'S Lean/ City A.M. BANKSIDE

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CITYA.M. 6 FEBRUARY 2012 News 9 Tory MPs rebel Webster to over subsidies step down as for wind farms ▲ ENERGY NEW Liberal Democrat energy secre- tary Ed Davey is already under politi- IHG chairman cal pressure, after more than 100 Tory MPs called on the government to slash subsidies to wind farms. The 101 Conservative signatories ▲ LEISURE preneurs who in 1977 formed Argyll, wrote to Prime Minister David BY KASMIRA JEFFORD a grocery business that expanded rap- Cameron to demand a re-think of the idly and was involved in a number of coalition’s energy policy. DAVID Webster, the long-standing takeover battles, including the firm’s “In these financially straitened chairman of Intercontinental Hotels failed bid for Distillers, which was times, we think it is unwise to make Group, is to stand down after eight sold to Guinness. consumers pay, through taxpayer sub- years at the helm of the world’s The group went on to buy the UK sidy, for inefficient and intermittent largest hotel group. arm of the American supermarket energy production that typifies A source close to Webster said that Safeway in 1987 and grew the busi- onshore wind turbines,” said the let- no date had been set yet for his depar- ness into the UK’s fourth largest ter, printed in the Sunday Telegraph. ture, but that he is likely to leave later supermarket. Webster stepped down The dispute mirrors current situa- this year. after seeing the group through a tions in other countries, where state The owner of Holiday Inn and fierce bidding war that resulted in its subsidies for some renewable source Crowne Plaza brands has already merger with Wm Morrison in 2004. energy suppliers are being called into kicked off a search for his replace- Webster, son of a former Glasgow question. ment, with Sir Stuart Rose, the for- Herald London editor, Comyn Many projects in the US have fallen mer chairman of Marks and Spencer, Webster, was also formerly a non- into limbo as firms await the out- and Allan Leighton, the former Royal executive director of Reed Elsevier, come of talks in Congress over Mail chairman, touted as two possible and served in the Royal Naval Reserve whether or not to continue with sub- candidates for the job. for eight years from 1962 to 1970. sidies and tax credits, including for Luke Mayhew, the former manag- He has also been chairman of wind farms. ing director of retailer John Lewis, Makinson Cowell, the capital markets And in economically-troubled who was appointed non-executive advisory firm, since 2004. Spain, new Prime Minister Mariano director of IHG last July, is also under- News of Webster’s retirement Rajoy has temporarily suspended pay- stood to be a likely candidate. comes just a year after chief execu- ments to new renewable energy Webster, 66, joined IHG in January tive, Andy Cosslett, stepped down, to plants, as part of his ongoing 2004, after seven years as chairman of be succeeded by the finance director, attempts to control the state’s large Safeway. He was one of a trio of entre- Richard Solomons. David Webster has been at the helm of IHG for eight years annual budget deficit. Free for 3 months on selected bundles

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Board members are calling for Deutsche Boerse chief executive Call for Deutsche Boerse boss Reto Francioni to step down to quit after failed merger Picture: GETTY

▲ CAPITAL MARKETS Witt, a board member representing Last Thursday, Boerse and NYSE ter- the interests of labour, told German minated their merger plans after the DEUTSCHE Boerse’s chief executive weekly Euro am Sonntag. European Commission blocked the Reto Francioni should step down fol- “Can someone who wanted to deal to prevent handing the combined lowing the collapse of its $7.4bn change the status quo by finding a group a “near monopoly”. (£4.7bn) plan to merge with NYSE partner only to see that (deal) collapse Boerse’s labour leaders had under- Euronext, a member of the German still lead this company into the mined its campaign to convince exchange operator’s supervisory board future?” German regulators a deal strength- told a newspaper. Francioni’s term ends after ened Frankfurt’s role as a financial “The question needs to be asked December 2013, and contract exten- centre when they urged shareholders whether there have to be conse- sions for CEOs in Germany are often to reject the deal, fearing key responsi- quences (for management),” Johannes agreed about a year in advance. bilities would be moved to New York. EU competition law thwarts Vodafone’s Greek merger deal

▲ called off due to “regulatory uncer- TELECOMS tainty” on EU competition law. Jump into The turmoil of the Greek economy, VODAFONE will scrap a $1bn merger which is in a deep recession, is also a of its Greek business with a local com- factor, said a source. petitor due to the belief that EU regu- The aim was to build a telco to rival latory authorities will block the deal. the Greek state player Cosmote, Ireland! The deal with Wind Hellas will be which has about half the market. Olympic Media Buzz LONDON 2012 PARTNERS

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Queen marks In association with PoliticsHome.com

How much do you know about the financial services bill? sixty years City panel concerned about the 1% 13% 23% impact of Financial Services Bill Completely aware 19% Somewhat aware ▲ were “somewhat concerned”. % Somewhat unaware on the throne BANKING Completely unaware More worryingly, perhaps, BY ELIZABETH FOURNIER almost a third of respondents 45% Don’t know AS MPs debate the new Financial admitted to being either “com- ▲ MONARCHY vately – it is also the day her father Services Bill in the Commons pletely” or “somewhat” unaware How concerned are you about the impact of the bill as a whole? George VI died – but this year she today, almost 60 per cent of our of the Bill, which will establish a BY ELIZABETH FOURNIER 4% 3% has two public appearances Voice of the City panel have con- new system of regulation, includ- THE QUEEN will today celebrate her planned, visiting both King’s Lynn fessed to being concerned about ing introducing a new City regu- 15% Diamond Jubilee anniversary, with Town hall and a local nursery the overall impact it could have lator to replace the Financial 13% Very concerned 6 February marking exactly 60 years school. on the UK. Services Authority. Somewhat concerned since her accession to the throne. In her Diamond Jubilee year the Fifteen per cent of our And even those who % Neither concerned Yesterday the Queen and the Queen has said she will try to visit panel – surveyed in associa- are aware of the Bill nor unconcerned Somewhat unconcerned Duke of Edinburgh, who is recover- as much of the UK as possible, while tion with seem sceptical about 23% 42% Very unconcerned ing from treatment for a blocked other members of the Royal family PoliticsHome.com, said its worth, with just artery over Christmas, attended travel further afield to take cel- they were “very con- 19 per cent agreeing Don’t know a church service in ebrations round the world. cerned” about the bill, that it will fulfill To what extent do you agree that the bill will lead to the UK Sandringham, as her Prince William and the announced by MP one of its core objec- avoiding another financial crisis? traditional winter break Duchess of Cambridge Mark Hoban (right) tives – to stop the UK 4% 1% in Norfolk comes to an will visit Asian countries which is supposed to falling into another end. where the Queen is head provide a more robust financial crisis, com- 15%18% Strongly agree Official celebrations of state, including Malaysia, regulatory system for pared to 55 per cent 13% Somewhat agree 29% will take place over a Singapore and the Solomon the City. who disagreed with Neither agree four-day weekend in Islands. A further 42 per the idea that it % nor disagree June, during which the Prince Charles and the cent said would 23% Somewhat disagree 23% Strongly disagree Queen will lead a Duchess of they help. 26% 42% 1000-strong flotilla Cornwall will visit Don’t know of boats on the other Thames through Commonwealth London. countries, includ- The Queen usu- ing Australia, ally spends and New Apply to join today at www.cityam.com/panel Accession Day pri- Zealand.

14 EDITED BY CITYA.M. 6 FEBRUARY 2012 ELIZABETH FOURNIER Got A Story? Email [email protected] The Capitalist Follow The Capitalist on Twitter: @citycapitalist

The £1 note THE FIRST from 1960 CLASS WAY was the first UK bank note TO MARK to feature a THE JUBILEE picture of the monarch - a Cyclists can win a place in the Ride Across Britain

AS USEFUL as a bank holiday might 34-year-old mile Land’s End to John O’Groats Ride have been today for those of you Across Britain. valiantly battling to make it to work Elizabeth II You’ll have plenty of time to train as through the snow, we’re all going to the ride doesn’t set off until have to wait another few months September, but if the idea of cycling before the Queen’s official Diamond 100 miles a day doesn’t appeal it Jubilee festivities afford the City a four- might be best to ease off in the final day weekend. straight – you’ll still be in with a But for those wanting to start the cel- chance of winning a bike worth ebrations early, the Royal Mail will almost £2,000, with all entrants going today be issuing a commemorative set into a prize draw for the Boardman of stamps to tie in with the official 60- will be former Citywealth ‘Woman of Images from UK ban- Olympic individual pursuit gold Carbon Pro. year anniversary of Her Majesty’s acces- the Year’ Katie Booth of Templewood knotes over the past 60 medallist Rebecca Romero and rowing sion. Merchant Bank and Alex Gaillard of JP years will be used on a legend James Cracknell. The stamps will feature portraits of Morgan Private Bank. set of stamps to cele- But beware, log the fastest time and the Queen from throughout her reign, Credit Suisse is sponsoring the brate the Diamond you could get more than you bar- including an image used on a £1 night, which has been organised to Jubilee Picture: GETTY gained for. The overall male and banknote issued by the Bank of raise money for the Ayala female winners will each win a place England – the first ever note to Foundation, which fights poverty to compete in the real deal – the 960- feature a picture of a monarch. in the Philippines. Designed by Robert Austin and launched in 1960, the engrav- ing for the portrait was based WHEEL AMBITION BILL OF THE WEEK on a pencil sketch of a pho- FANCY yourself as a bit of a tograph of Her Majesty, speed freak? who was just 34-years old Whether you’re a weekend at the time. cyclist, one of the City’s growing The stamps will be number of two-wheeled com- available as part of a muters, or just want to blow special Diamond off a bit of steam then Jubilee Miniature make sure you head Sheet from today – down to Broadgate first class only, of this Wednesday course. for a chance to test your speed against fellow cyclists – and MODEL a few Team GB Olympians for good measure. EMPLOYEE The inaugural Deloitte SPARE a thought for the brave Ride Across Britain City workers who’ve signed up (Deloitte RAB) City 250 to move from boardroom to Challenge – the Square Mile’s catwalk next month, and tak- very own version of the cross- ing part in Prospero World’s country Ride Across Britain A GROUP of six Credit Suisse bankers took themselves to Gaucho for an London Philippine fashion event – will test keen cyclists early lunch last Thursday – and left more than £2,000 poorer after a show on 8 March. with a 250m time trial rather unusual last-minute addition to their bill. After a traditional steak Among the well-known sprint on static Watt dinner mixing and matching the restaurant’s meat offerings – from the faces who’ll be following bikes. modestly priced sirloin to a more flashy chateaubriand – even a round of in Kate Moss’s (right) foot- As well as your col- 30-year Macallans and some limited edition Malbec couldn’t push the steps as “models for one leagues, you’ll be total above £1,000. So, belts no doubt loosened after a three-course meal night” in Bloomsbury competing and five bottles of wine, the bankers decided to treat themseves to VIP Square’s Victoria House against reigning tickets to the Gaucho-sponsored polo tournament – a snip at £225 each.

Tonight 6pm: Allister Heath (left) and Jeff Randall (centre) on Jazz in the City Jazz FM, hosted by Michael Wilson (right). Listen on DAB Digital Radio, Sky 0202, Freesat Jazz has always been one of the great of their favourite jazz, soul and blues tracks. 729 and at www.jazzfm.com remedies for the stresses of life. With the Also on the show, Allister Heath, City A.M.'s weekly 'Jazz in the City' series, we can listen editor, will give a brief economic and to the wonderful jazz tracks that helped many financial round-up of what we can expect in of the capital's famous figures cope with the the City during the week ahead. challenging moments of their lives and careers. The 'Jazz in the City' guest tonight is Jeff Randall, Sky's business editor, who also Join host Michael Wilson every Monday presents 'Jeff Randall Live', a business and between 6pm-7pm for Jazz in the City — politics show on Sky News. He also writes for a one-hour programme that aims to bring the the Daily Telegraph and is a former business City to life, with some great conversations and editor at BBC News. 'Jazz in the City' is

memorable music. Michael will talk to the kindly sponsored by global fund manager

people who make the City tick and play some Aberdeen Asset Management. Listen tonight from 6pm on Jazz FM CITYA.M. 6 FEBRUARY 2012 News 15 All3Media sets hunt for new Cables finally chief in motion

▲ lead to profit MEDIA

PRIVATE equity firm Permira is on the ▲ TELECOMS cash flow, at £1.51bn and £412.3m lookout for a new chief executive for BY LAUREN DAVIDSON respectively in 2010. All3Media, in which it owns a majori- Wednesday’s results will coincide ty stake, as current head Steve CABLE television is set to announce its with the fifth anniversary of Virgin Morrison, 64, prepares to step down. first profitable year in the UK after Media, which was launched in 2007 as A headhunter has been brought in almost 30 years of operation which a merger between Virgin Mobile and as it is thought likely that the new have swallowed up investments of debt-ridden cable companies NTL and chief executive will be an external £13bn. Telewest, promising rich rewards at candidate. Virgin Media, the nation’s main last for cable investors. All3Media, the British television cable operator, is expected to report its Virgin is now the only national cable production company behind Peep first annual net profit on Wednesday, network in the UK, covering half the Show, The Only Way Is Essex and compared to a loss of £141.4m last year country and reaching 13m homes. Midsomer Murders, made record and £357.8m the year before. Smallworld provides a cable televi- profits in 2011. While some analysts have pegged sion network for Western Scotland and The UK’s biggest production com- the profits in the high £80 millions, North West England, while pany reported a 28 per cent revenue the figure is thought more likely to be WightCable connects the Isle of Wight. hike to £465m, alongside a 20 per nearer the £72m mark, as predicted by As a result of an administration cent jump in earnings before interest, BNP Paribas. error which saw upgrade emails sent taxes, depreciation and amortisation On the lower end of the scale, JP to unqualifying customers, Virgin to £64m. Morgan has put forward an estimation Media last month announced it would However, attempts to sell the com- of £60m. double the broadband speed of all its pany for £750m last year failed. This will be the first positive net customers. Steve Morrison, who has been with income on Virgin Media’s record. It has since unveiled plans to raise its All3Media since its 2003 birth, will However, the Branson-branded cable broadband prices by up to £1.50, remain involved with the company in company has for some time reported a although the company has said this is the new role of chairman. positive operating cash flow and free part of a standard price review. Zuckerberg faces whopping tax bill

▲ TECHNOLOGY BY LAUREN DAVIDSON thought to be the first time the 27-year old has sold any of his shares in the FACEBOOK founder Mark Zuckerberg social networking site. could fork out more than $1.5bn He will use “substantially all of the (£950m) in taxes when the Menlo Park- net proceeds” from this transaction to based company goes public in foot the tax bill that will arise from his May. purchase of 120m shares of the Class The S1 form, filed with the B stock at a price of six cents per SEC last Wednesday, outlined share. that Zuckerberg intends to As this will be taxed as regular exercise his outstanding income as opposed to capital gains, stock options on shares he Zuckerberg is looking at a 35 per was given in 2005 for his role cent tax rate. as chief executive, selling If the flotation values enough to cover the tax bill Facebook at $100bn, expected to cumulate from Zuckerberg stands to the flotation. make $6bn, resulting In the IPO, in a tax bill of Zuckerberg will sell an $2.1bn – one of the as-yet undisclosed largest single tax number of shares – bills ever. AutoTrader website takes first steps to file for public offering

▲ TECHNOLOGY levels and used-car prices are at a near record. ONLINE car sales network AutoTrader took a stab at float- AutoTrader.com is making prepara- ing in 2000, but withdrew the tions to list as a public company, offering before it hit the market. according to Bloomberg, following The car sales website could have in the footsteps of Facebook which taken a confidence boost from the last week filed for a staggering string of recent internet flotations. $5bn IPO. Shares in LinkedIn, Groupon and The website, which is owned by Zynga – which listed last year – Cox Enterprises (75 per cent) and jumped last week on news of Providence Equity Partners (25 per Facebook’s coming public offering. cent), is said to be currently in dis- All three internet companies are cussions with banks about the trading above their IPO price. move. Founded in 1997, AutoTrader This could be a bid to cash in on attracts more than 14m buyers the rising automative industry, each month to its website. where sales of new vehicles in the AutoTrader declined to com- US are returning to pre-recession ment. 16 News CITYA.M. 6 FEBRUARY 2012 Some lessons from the US university system

ensures that students still are able to $250,000 (£158,000) in debt. Officials from Universities UK, mary thing on Britons’ minds. And so pay for an education. I’m not suggesting that such a state among others, played down the recent far, the numbers indicate that one of Well, let me tell you about loan sys- of affairs is imminent within the UK. slide in applications from within the the groups of students who risk tems. We have a loan system in the US, What I am saying is watch your foot- country, saying it’s only temporary. becoming under represented in the where I’m from. Every student — at ing when it comes to “loan systems”, They say we’ll see those numbers UK’s university system is Britons. least the ones who don’t come from education’s most slippery slope. pop back up soon enough, and point Of course, there’s always a chance money — gets sucked into it. Following the fees hike, applications out, rightly, that there are still more that the loan model will work, even if Let’s take my case. I finished gradu- to university from within the UK students applying for university than not perfectly. In the US, after all, we CNBC COMMENT ate school in the US 15 years ago. dropped 8.7 per cent, according to there are slots available. The main con- don’t have a system that denies poten- Today, those loans, combined with my data published at the end of January cern, they say, is to ensure that stu- tial students the chance to get a higher TED KEMP undergraduate loans, monthly cost by admissions organisation UCAS. Fees dents from certain backgrounds aren’t education. Loans are at the ready. Our me more than three times what I pay currently stand at as much as £9,000. falling out of the application mix system does, however, have one major EWARE, those who follow our in Westminster Council taxes. Applications from the EU fell by 11.2 more than others. pitfall for the students: it puts a lot of lead. Those who defend the UK’s I have a friend — granted, a physi- per cent. Meanwhile, applications That’s certainly a worthy concern. them in a financial hole from which university fee hikes say that cian who went to medical school, but from outside Europe, especially from But in an era of increasingly cut throat they’ll spend decades escaping. Bthere’s no need to worry, still, let’s put the example out there — south-east Asia, continued to climb global economic competition, overall Ted Kemp is senior news editor for because the educational loan system who finished Columbia almost higher, to almost 14 per cent. national interest should be the pri- CNBC.com in EMEA. NEWS | IN BRIEF

Middle east deal values down Households are £8,000 in debt BUSINESS HAS SUFFERED A SERIOUS BLOW. Mergers and acquisitions in the Middle Despite three years of paying off credit JOIN THE RECOVERY TEAM. East and North Africa rose slightly in cards the average household still faces 2011, but the combined value of deals fell £8,000 in unsecured debts, a PwC report by more than a quarter as slower eco- warned today. “UK consumers are among nomic growth weighed on prices, Ernst & the most indebted in the world,” said Young said yesterday. Deal values fell to PwC’s Simon Westcott. “With households $31.7bn in 2011 compared to $44.1bn a paying off an average of £355 worth of year earlier, but the number of deals rose debts in 2011, three years of austerity four per cent to 416 from 401 over the have only made a small dent in the total same period, a statement said. levels of borrowing.”

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SCAN THE CODE TO LEARN MORE. CITYA.M. 6 FEBRUARY 2012 News 17 FIRST-TIME BUYERS ARE MOST COMMON IN LONDON Smaller finance Percentage of those who expect to buy in the next 12 months Hopeful house that will buy for the first time firms on hunt for City talent buyers put off 21.8% 24.5% 22.1% ▲ EMPLOYMENT SCOTLAND NORTH YORKSHIRE& HUMBERSIDE NIMBLE-FOOTED small and niche financial firms are taking advantage by low supply of a surplus of City talent by upping their recruitment, it emerged this morning. With many larger banks cutting ▲ HOUSING for more positive reasons. their headcounts, smaller aspira- BY JULIAN HARRIS “For first-time buyers who are itch- tional groups are looking to snap up ing to get on the ladder a lack of 26.3% 19.0% highly qualified bankers. A SHORTAGE of suitable housing is fresh of choice in apartments and “Some employees who would nor- preventing potential first-time buy- terrace properties must be extremely NORTH EAST mally only move from one top flight ers from stepping onto the property frustrating,” said Rightmove’s Miles WEST MIDLANDS bank to another are now more will- ladder, according to data released Shipside. ing to accept job offers from smaller this morning. Raising enough of a deposit for a name, more ambitious employers,” Asked to name their biggest con- competitive mortgage remains the said recruiters Astbury Marsden. cern about buying a home, the sec- most common stumbling block for “Those employees that have stayed ond most common response among aspiring buyers. “You can under- put for some time to see out the potential buyers was the difficulty of stand the frustration of many downturn will still be harbouring finding a property. ‘trapped renters’ who would like to 22.0% 21.6% ambitions to move on,” added Mark “In the final quarter of 2011, the buy but simply don’t have the means Cameron, Astbury Marsden’s chief numbers of terraces and flats com- to get over the deposit hurdles put WALES EAST operating officer. ing to market were down 31 per cent up by lenders,” Shipside added. The company has found that most and 28 per cent respectively when The proportion of house-buyers ANGLIA new roles are coming from firms out- compared with the previous quar- over the next 12 months that will be side the top 10 investment banks – ter,” stated the report from first-time buyers has edged up to mirroring the situation following the Rightmove, which compiles the data. 24.3 per cent, the survey showed, yet Lehman Brothers collapse in 2008. Weak supply is partly being remains “well below the historic The number of City vacancies caused by owners failing to “trade norm of 40 per cent”. rebounded healthily last month, the up”, Rightmove said, due to econom- London remains the region in firm said, up to 4,050 from the ic uncertainty and a lack of equity. which first time buyers account for 22.7% 20.1% 21.0% 41.5% Christmas-time slump of 1,490 in Low interest rates and lenient poli- the highest proportion (41.5 per December. cies towards borrowers with arrears cent) of likely future sales. In all WEST SOUTH SOUTH GREATER Yet job availability in January have reduced the number of forced other recorded regions the propor- remained around 25 per cent lower sales, also reducing supply – albeit tion is well under 30 per cent. MIDLANDS WEST EAST LONDON than at the same time last year.

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Workers are facing the cold shoulder as firms look to freeze pay and hiring in 2012 Picture: PA Recession risk on low morale

▲ UK ECONOMY salary growth is set to slow to 1.1 per cent. Unemployment is set to keep ris- BY TIM WALLACE ing with small firms expect to increase BUSINESSES are slashing investment, headcount by 1.8 per cent and larger slowing hiring and freezing pay thanks firms by just 0.5 per cent. to worries over the economic outlook, Meanwhile small manufacturers’ out- according to the Institute of Chartered put was flat over the three months to Accountants in England and Wales’s January, the CBI reported, with 33 per (ICAEW) business confidence monitor, cent fearing export orders will be hit by published today. the Eurozone crisis. Sentiment among small manufactur- However, mid-market retailers report- ers declined for the third quarter run- ed modest sales growth of 0.2 per cent ning according to the Confederation of year on year in January the BDO said. British Industry (CBI). The services sector rebounded, Markit However, services output expanded in reported on Friday, registering strong January, Markit’s purchasing managers’ growth in employment. index (PMI) showed on Friday, and retail sales last month were better than ANALYSIS l Business confidence points expected according to today’s BDO’s to a recession high street sales tracker. 40.0 Index 30.0 The ICAEW confidence index sta- 20.0 bilised at minus 9.3 for the first quarter 10.0 of 2012, from minus 9.7 in the previous 0.0 quarter which saw the first negative -10.0 -20.0 London reading since mid-2009. The weak data -30.0 point to a 0.2 per cent decline in GDP -40.0 UK confidence index this quarter, the Institute believes – tak- -50.0 ing the UK into recession. -60.0 The subdued outlook means average Q1 2008 Q1 2009 Q1 2010 Q2 2011 Q1 2012

JOIN US FOR A KEYNOTE LECTURE ON ‘OPERATIONS MANAGEMENT AS A Think COMPETITIVE WEAPON’ AND FIND OUT MORE ABOUT THE FULL AND PART-TIME MANCHESTER MBA, FEBRUARY 8, 18.30 AT Manchester THE INSTITUTE OF DIRECTORS PALL MALL. Original Thinking Applied Incentives available for go.mbs.ac.uk/events MBA early applications. +44 (0) 161 275 7212 CITYA.M. 6 FEBRUARY 2012 News 19 BANK POISED TO PRINT MORE MONEY SMEs to bear QE starts September 2011 CPI inflation hits March 2009 October 2011 brunt of new £75bn 5.2% +£75bn May 2009 Bank of England estimates August 2009 Lean City A.M. Laura Picture: QE added February 2012 credit crunch +£50bn +£50bn 1.5 – 2% to GDP, and +£50bn* November 2009 TOTAL: £325bn

▲ UK ECONOMY nomic growth.” +£25bn0.75 – 1.5% BY TIM WALLACE The credit crunch will also extend to to inflation consumers who are set to see bank TOTAL: £200bn * Expected amount BANK lending will contract through lending fall by a further 5.4 per cent, 2012 for the first time since 2009, with and will not see loans return to 2011 small and medium-sized enterprises levels until 2014, the Item Club (SMEs) particularly badly hit, the Ernst believes. Bank of England expected to release and Young Item Club predicted today. However, the non-bank sector is Total bank loans will contract by 2.2 expanding quickly – bank and build- per cent in 2012, the report forecast, ing society unsecured lending to indi- followed by growth of just 0.9 per cent viduals fell by 23 per cent, or £34bn, another £50bn of quantitative easing in 2013. since 2008, while lending by high-costs The fall compares with estimated consumer credit providers has risen 42 4.3 per cent growth in 2011. per cent, or £29bn, over the period. SMEs face a 5.7 per cent fall in lend- ▲ UK ECONOMY inflation’s rapid decline with the aim Meanwhile economists at Citi ing this year, with construction and ANALYSIS l Bank lending BY TIM WALLACE of hitting the two per cent target in believe the MPC will go further real estate among the worst hit. 150 Value of loans the medium term. through 2012, predicting QE will Furthermore the cost of credit is 140 indexed from ECONOMISTS widely expect at least Economists at Barclays Capital reach £600bn by the end of the year. Jan 2007 expected to keep rising. 130 another £50bn of quantitative easing believe the inflationary impact of QE “For the February meeting we fore- “The average interest rate on small- 120 (QE) to be announced by the Bank of may have been overstated. cast the MPC will expand QE by Other consumer credit providers er loans, of £1m or less, is already dou- 110 England’s Monetary Policy “Money and credit in the economy £75bn,” said economist Michael ble that charged on loans of £20m or 100 Committee (MPC) on Thursday. continued to shrink in December, Saunders. For the longer-term pic- more, and we expect this trend to con- 90 Committee members including and the additional £50bn of QE we ture, “our view is partly based on our tinue,” warned Item Club’s Neil Blake. 80 governor Mervyn King have dropped expect is unlikely to halt the slide,” view that as inflation slows the MPC “As these young companies tend to 70 Banks and building societies clear hints that they will buy more said Chris Crowe, arguing the link will be more willing than many be high-growth businesses, this will 60 government bonds to lower interest between QE and nominal income is expect to use QE to boost the econo- have adverse knock-on effects for eco- Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 rates and boost demand, slowing weaker than previously assumed. my against a range of headwinds”.

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Bromley Mind is a dynamic, successful provider of mental health and de- mentia services with a reputation locally and nationally for quality and inno- ANALYSIS l Bumi/Rothschild Story vation. Success in attracting new funding has enabled us to continue to grow despite a challenging financial climate. We are looking for an experienced leader and manager with the skills to 4%3% take forward our diverse services. As a key member of the Senior Manage- ment Team, you will be responsible for service delivery across the organi- Samin Tan & Bakrie Family sation, and play a central role in the strategic and business development of Bromley Mind. 5% Educated to degree level or equivalent, you will have a strong track record 47% Nat Rothschild in senior management, including leading service and project development, supervising and developing staff. You will have specific experience in pro- Rosan Roeslani viding services for people with mental health needs and/or dementia, 11% preparing tenders and/or funding bids and leading teams through service % Blackrock transformation. You will be an excellent communicator, able to enthuse and motivate peo- ple within and outside our organisation. 11% Abu Dhabi Investment Authority More details and an application pack can be downloaded from our website Schroders Closing date: 12.00pm on Tuesday 7th February 2012 the rest - other institutional shareholders Likely Interview date: Friday 17th February 2012 http://www.bromleymind.org.uk/work-for-us/current-vacancies#head-of-services www.bromleymind.org.uk

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▲ MINING chief financial officer Andrew BY KASMIRA JEFFORD Beckham. The London-listed Bumi was THE Bakrie family’s shareholder part- formed when Rothchild’s cash shell ner in Bumi, Samin Tam, is due in Vallar bought stakes in two London this week in a bid to persuade Indonesian coal mining companies institutional shareholders to oust Nat called Berau and PT Bumi Resources Rothschild off the board of the coal- forming Bumi in a reverse takeover. mining company. The latest move has sparked specu- The Bakries – who set up their ven- lation of a deepening rift between ture with Rothschild just over a year Rothschild and his Indonesian part- ago – sold half their stake in Bumi last ners, after he wrote a letter to Hudaya November to a group backed by calling for a “radical cleaning up” of Indonesian businessman Samin Tan, PT Bumi Resources corporate gover- helping them to avoid default on a nance culture. $1.35bn loan. The two sides appeared to have In a surprise statement on Friday, made amends in December after the Bakrie family and Tan, who Rothschild met Indra Bakrie in together control a 29.9 per cent voting Singapore and the Bakries agreed on a stake, called for an extraordinary gen- debt repayment schedule for 2012. eral meeting to discuss a shake-up of ANALYSIS l Bumi PLC the board. 850.00 Tan has proposed himself and Indra p 3 Feb Bakrie as co-chairmen – the role cur- 890 rently held by Rotschild – and has also 880 tabled resolutions to remove four other directors including James 870 Campbell, a former Anglo American 860 head of coal and fellow founder of Bumi, chief executive Ari Hudaya, 850 who is also chief executive of part- owned, listed miner PT Bumi, and 30 Jan 31 Jan 1 Feb 2 Feb 3 Feb Thomas Cook Durcan to take eyes disposal over at Micron ▲ LEISURE ▲ TECHNOLOGY TRAVEL company Thomas Cook MICRON Technology yesterday Group has hired Credit Suisse to sell announced that Mark Durcan, 51, off its Indian foreign exchange busi- had been appointed chief executive ness, according to weekend reports. replacing Steven Appleton, who was The sale is part of Thomas Cook’s killed Friday when the small plane he planned divestments of non-core was piloting crashed at an airport assets to raise £200m to reduce debt near the company headquarters in and shore up the troubled company’s Boise, Idaho. balance sheet. Durcan had been Micron's presi- Thomas Cook was not immediately dent and chief operating officer. On available for comment on the Sunday Saturday he was also appointed to the Times report. Thomas Cook swung to company's board. an annual loss last year after a series The company remains shaken by of profit warnings and the resigna- the loss of its leader. Appleton was tion of chief executive Manny one of the most prominent figures in Fontenla-Novoa in August. the semiconductor industry. CITYA.M. 6 FEBRUARY 2012 News 21 Debenhams Textile tycoon launches Jenny makes move Packham range ▲ RETAIL DEBENHAMS has unveiled its latest womenswear collection created by on Peacocks one of the Duchess of Cambridge’s favourite designers, as part of the retailer’s ongoing move to grow its market share of occasionwear ahead ▲ RETAIL Monday but interest from private of its rivals. BY KASMIRA JEFFORD equity bidders is believed to have British designer Jenny Packham – dimmed. also a favourite among Hollywood A- A PAKISTANI textile billionaire is KPMG has already announced 249 listers – will launch an affordable understood to be putting together a redundancies from Peacocks head range of dresses, accessories and chil- surprise bid to rescue Peacocks with office in Cardiff last month and drenswear across 72 of Debenhams’ the collapsed retailer’s management more than 8,000 jobs are at risk if 166 stores in April and will expand team. the administrators do not find a into a further 56 later in the year. The fashion chain went into buyer for the firm. The announcement comes as administration last month in the Fiyaz has been involved in some Debenhams’ chief executive Michael biggest retail collapse since retail deals in the past, including the Sharp said the group enjoyed a better- Woolworths, after plans to restruc- purchase of Danish department than-expected Christmas, largely due ture the company broke down and store business Magasin du Nord by the success of its Designers at banks pulled the plug on funding. Solstra Capital three years ago, Debenhams ranges, which are sold on Alshair Fiyaz, who is worth an esti- which was then leased to an exclusive basis. mated £3bn, is working with Solstra Debenhams. The department store said its best- Capital, a Danish investment fund However, his main interests lie performing designer range was the part-owned by Fiyaz that manages with his shipping and financial serv- young fashion range H by Henry £1bn of assets. It is expected to sub- ices business ALFI Investments. Holland. mit a second-round bid tomorrow, it Packham is best-known for her was reported yesterday. FAST FACTS | PEACOCKS bridalwear and the new collection He is understood to be working “No. 1 Jenny Packham” will cater for with Peacocks’ managing director ● Peacocks owns 563 stores and 48 conces- bridesmaids and wedding guests, Tim Bettley, and other members of sions across Northern Ireland, Scotland, with prices ranging between £85 to its senior management team includ- England and Wales £160. ing Roy Ellis, finance director. ● The retailer had around £750m of debt and Debenhams also announced an Peacock’s administrators KPMG made an £80m pre-interest profit in 2010. exclusivity deal last week with the US received six first round bids last Debenhams hopes to grow its market share with Jenny Packham’s fashion range casual clothing brand Nautica.

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NEWS | IN BRIEF Putin protests gather steam Nigel Doughty, a Vladimir Putin’s opponents vowed yes- terday to press on with demonstrations against his 12-year domination of Russia after tens of thousands attended a march which kept up the momentum of grandee of private their protest movement. “We’ll be back,” the organisers said on a social network site, one day after demonstrators defied the cold to stage the third mass rally since anger mounted over alleged fraud equity, found dead in a parliamentary election won by Putin’s party on 4 December.

Deutsche Telekom bids for rights ▲ Deutsche Telekom will bid on its own for PRIVATE EQUITY death of Nigel Doughty. Our exclusive satellite and cable rights to BY HARRY BANKS thoughts are very much with his show Germany’s Bundesliga soccer family at this time.” games live, a magazine reported, open- CITY financier Nigel Doughty was But Doughty was also a familiar ing a possible bidding war with Sky found dead at his home in face in football circles as owner of Deutschland. Should Telekom receive the Lincolnshire over the weekend, the Nottingham Forest football club, rights, which are estimated to cost shocking the private equity commu- which is left with some £75m in about €225m (£187m) every year, Der nity in which he was a major figure- debts to him. He saved the club from Spiegel reported yesterday that it might head. administration in 1999. look to sell the cable rights to a third The 54-year-old was found in his Doughty stepped down as chair- party. home gym and is believed to have man of the club in October but he suffered a heart attack. was planning to invest more than Chronicle wins at the box office As the co-founder of private equity £20m in the team over the coming Thriller “Chronicle” edged ahead of group Doughty Hanson with years. haunted house film “The Woman in Richard Hanson in 1986, he was Doughty was also a strong sup- Black” in a tight box-office race that well-known in the City. porter of the Labour Party, having saw both movies beating pre-weekend The firm said: “On behalf of Dick donated £3.5m to the organisation forecasts, studio estimates released yes- Hanson, and all the management since 2005 and acting as an adviser terday showed. “Chronicle” brought in and staff of Doughty Hanson, we are to the party on how to engage with an estimated $22m from US and Multi-millionaire Nigel Doughty donated at least £3.5m to the Labour party. tremendously sorry to learn of the the business community. Canadian theatres. Olympus sets date CARECARE OLYMPIC CYCLE CHALLENGE SATURDAYSATURDAAYY for crucial meeting 2233 JUNEJUNE 20122012

▲ TECHNOLOGY as to whether any of the current will be further revelations” BY LAUREN DAVIDSON directors plan to put themselves before the EGM, he added. forward again on a new slate, Fujifilm stepped forward last MICHAEL Woodford, the and also the names and back- week with the offer of a corpo- Olympus chief executive who grounds of new candidates.” rate alliance. Olympus will not was ousted in October when he The meeting has been long- respond until a new executive revealed the company’s £1.1bn awaited as a potential turning team has been selected at this accounting fraud, has said he point in the company’s grim meeting. Break intends to attend the extraordi- trajectory. nary shareholders’ meeting Woodford called for a ANALYSIS l Olympus Corp scheduled for 20 April. “suitably large venue”, the cycle ¥ 1,256 A new management team is saying that the meet- 1,290 expected to be approved at ing is likely to be 3 Feb of poverty this meeting, as 19 current attended by share- 1,280 and former Olympus execu- holders of all stake tives are being sued by sizes and 1,270 the Japanese camera locations. 1,260 GGetet oonn yyourour bbikeike fforor maker. “It is Woodford said, highly 1,250 the CCAREARE OOlympiclympic CCycleycle “We remain unclear likely Challenge aandnd ppedaledal tthehe in definitive terms there 30 Jan 31 Jan 1 Feb 2 Feb 3 Feb poorpoorestest communities out ooff popoverty.vertyy.. Kuwaiti finance markets are steady after Islamist-led party gains power ▲ WORLD dinar, which is pegged to a dollar- the opposition to push for constitu- dominated currency basket, was tional changes and challenge the KUWAITI financial markets were quiet. cabinet, which is appointed by a steady yesterday after the Islamist- Candidates from the loose, prime minister hand-picked by the led opposition won control of par- Islamist-led opposition bloc took ruling family. These tensions led in liament in an election, a victory about two-thirds of the assembly’s November to the storming of par- which could worsen political ten- 50 seats in Thursday’s election, liament by opposition lawmakers sions but conceivably also lead to eroding the position of Shi’ite par- and protesters, though protests fresh government spending meas- liamentarians who generally sided have generally been peaceful. ures. with the cabinet. The opposition “The opposition will now feel it The main stock market index, bloc, which had just over 20 seats has a democratic and moral man- PROUDLYPROUDLLYY SUPPORTEDSUPPORTED BYBY which has been edging up from before the vote, will lead the state’s date to push further against the multi-year lows over the past three fourth parliament in six years. government and what they see as REGIREGISTEREDSTERED CHARITY NO.NO. 292506 weeks, was up 0.03 per cent during Analysts said the election results official corruption,” said Farouk the early afternoon in fairly active might deepen political tensions in Soussa, Middle East chief econo- turnover. Trade in the Kuwaiti the country if they emboldened mist at Citi. FINANCE BANKING LEGAL IT

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

recruitment businesses over the last Salter was one of the founding part- Mastercard UK decade. He is currently chairman of the AXA Investment Managers ners of Barnett Waddingham which The global payment processing network has British Jewellery Associaton, vice pres- AXA has announced the appointment was established in 1989. appointed Marion King as president of its UK ident of the British Allied Trade of Laurent Seyer as global head of and Ireland business. King was previously CEO Federation and a council member of investment solutions, effective from 2 Shore Capital of VocaLink, a payments service provider to the West Midlands CBI. May this year. Seyer joins from Lyxor The investment group has announced banks, corporations and governments. Prior to Asset Management, where he was CEO the arrival of four new members to its this she worked at Reuters for 14 years, hold- Orrick, Herrington & Sutcliffe since 2006. He will join the manage- teams. David Izzard joins the equity ing a series of senior roles, most recently as The global law firm, with more than ment board of AXA IM and report to sales team from MF Global. Philip Kerr managing director for Global FX Transaction 1,100 lawyers in 23 offices worldwide, Dominique Carrel-Billiard, CEO of AXA further expands the equity sales team Services. Mastercard has also hired Hany Fam has added Stephanie Bates as a part- IM. Seyer replaces Thibaud de Vitry, having previously been a director at to the new role of head of European market ner in its London office. Formerly the who has left the company. Evolution Securities. Elliott Shaw also development and strategic partnerships. co-head of Mayer Brown’s London joins the equity sales team having Capital Markets Group, Bates focuses Barnett Waddingham worked for Eden Financial and Insinger JSJS Designs tive. Hughes was head of marketing for her practice on representing issuers Nick Salter has been appointed senior de Beaufort. Alex Stewart has joined The provider of home automation tech- the partnership division of Marconi and underwriters in UK equity capital partner at Barnett Waddingham, the to provide a specialist income service nologies has appointed Mike Hughes to Communications, and has launched markets transactions and public com- UK’s largest independent firm of actu- for institutions analysing dividend pay- its board as an independent non-execu- severa; manufacturing, internet and pany mergers and acquisitions. aries, administrators and consultants. ing equities. 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

BEST OF THE BROKERS To appear in Best of the Brokers email your research to [email protected]

ANALYSIS l Cluff Gold 92.00 ANALYSIS l Cupid 212.75 ANALYSIS l Misys 329.50 p p 3 Feb p 95 3 Feb 220 340 3 Feb 90 210 320 85 200 300 80 190 280 75 180 70 260 65 170 240

Dec Jan Feb Dec Jan Feb Dec Jan Feb CLUFF GOLD CUPID MISYS Seymour Pierce recommends “buy” on Cluff Gold shares due to its Numis has upgraded dating website Cupid to “buy” in light of Facebook’s Merchant Securities has downgraded Misys to “sell” on the disappointing acquisition of the Sega gold project in Burkina Faso for $30.5m. The recent filing for an IPO, which highlights the advantages of investing early news that the IT solutions supplier is in talks with Temenos for an all-share new project – just 20km from Cluff’s Kalsaka mine – brings an extra 35 in internet success stories. Towards the end of last year Cupid reported a merger after all the rumours of a bid. While this has polarised opinion, per cent of additional resource to the group. As $74/oz for the asset, revenue growth of 189 per cent due to rapidly increasing global expansion, Merchant believes the merger is borne of organic weakness; Misys has this looks decent value against the London-listed average of $129/oz. but with 15 countries still to penetrate. While Cupid is not new to the stock never proved an ability to deliver major revenue or cost synergies from Wish cash flow to spare, this looks like a good move for Cluff. exchange, it remains an aggressive grower and a sound investment. deals, and its M&A track record is mixed.

WALL STREET WEEK AHEAD

UROPE will again be at the cen- stronger-than-expected jobs report. the Eurozone crisis as the govern- brinkmanship – which is what is slow this week. Some 66 S&P 500 tre of investors’ focus this week “It’s the old ping-pong game. ment struggles for agreement on fis- being played here – that you have a companies are expected to report, as the US earnings season passes Today it is the US, tomorrow it is cal reforms that would be accepted dangerous outcome if the pieces including Walt Disney, Coca-Cola Ethe halfway mark and there is Europe again,” said Joe Saluzzi, co- by political leaders and private bond- don’t come together,” said Paul and Cisco Systems. little on the economic calendar to manager of trading at Themis holders as it tries to avoid a disorder- Mendelsohn, chief investment strate- NYSE Euronext is also due to give the market direction. Trading in Chatham, New Jersey. ly default. gist at Windham Financial Services report results after the exchange ter- Economic data expected this week “Normally in this type of tape Talks on a bond swap and €130bn in Charlotte, Vermont. minated merger plans with Deutsche includes weekly initial jobless claims, when there is no economic news, it in bailout funds have been continu- “They have until 19 March. They Boerse on Thursday. the Thomson Reuters/University of seems like the bias goes to the ing for weeks before a March dead- are going to keep pushing this thing Through to Friday, 283 companies Michigan’s consumer sentiment upside.” line when €14.5bn of bonds become until everybody gets the best deal in the S&P 500 have reported results, index and international trade fig- But whether European bond yields due. Hopes that a deal was on the they can out of it or they decide not with 60 per cent posting earnings ures. spike or other news from Europe horizon dissipated on Friday as to move forward and let Greece go. that have topped Wall Street expecta- Improving data helped push the emerges will be the wild card for the Eurozone finance ministers delayed a It’s always a possibility at the end of tions, a lower percentage than seen S&P 500 index up nearly 7 per cent markets, Saluzzi said. meeting scheduled for today. the game.” in recent quarters through this stage for the year, highlighted by Friday’s Greece remains at the forefront of “There is always the chance in The flood of earnings reports will of the reporting season. You can be there!

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Availability is very limited – contact an advisor today to book your place at this year’s ultimate sporting spectacle on 020 7936 5221 or [email protected] 26 CITYA.M. 6 FEBRUARY 2012 The Forum cityam.com/forum Politicians are slaughtering UK finance – the goose that is still laying the golden egg

VER recent years British business has ensuring we have a robust – and fully practical – cial sector does not even amount to ones year’s withstood many onslaughts with quiet regulatory framework, and giving clear and worth of benefit that the UK derives from hav- stoicism, but the latest politically inspired unequivocal backing for the UK’s financial serv- ing such world leaders in our midst. Owitch-hunts against financial leaders ices industry in the face of Brussels-based ogres Of course, we all wish that the UK could seems to have finally broken the camel’s back. (such as the financial transaction tax), are more return to being the “workshop of the world”, but The unpalatable truth is that politicians of all pressing issues for the chancellor and Vince this will not be achieved by smashing the one parties, in their selfish efforts to bolster their Cable? I fail to understand how the de-frocking thing in which we are world leaders. personal election prospects, have delivered a sav- of the erstwhile Sir Fred will achieve anything Our secretary of state for business, Vince age wound to business development in the UK. other than prompt another round of futile anti- Cable, seems to have misread his job description. The shallowness of our current political mas- big-business bile. Business is the easiest animal The basic fact is that people go into business to ters was so clearly and unambiguously exempli- to kick – the arts and the fourth estate, whose make money, people invest in companies for fied by the unedifying sight of David Cameron representatives include convicted criminals Lord them to make a profit so that they can be paid a and Boris Johnson talking about welcoming Archer and Lord Black, are notably absent from dividend and (hopefully) for the value of their French financiers with open arms, in the event this particular trend of title-stripping. The prob- investment to go up. In the main entrepreneurs of the imposition of a Gallic Tobin Tax. We recall lem is that if it is kicked once too often, the busi- are not altruistic members of society – although that last week they were jumping on the “bash-a- ness beast will flee the house – in this case many become so later in life. banker” bandwagon. Frankly, if I were sitting in probably for Hong Kong, Singapore or Australia. In the case of my own company, for every £1 Paris I would prefer to tough it out rather than eventually declared as a profit and then paid out move to the UK and suffer the incessant tirade in dividends, the UK state will have taken 66.8p that business leaders are exposed to over here. In in various taxes before it gets into the bank attempts to appeal to the educationally chal- Our secretary of state for account of an investor (if the recipient of the lenged, our political masters have imposed ever divvy is a high-end tax payer). It is not individu- more stringent terms on the financial sector, business, Vince Cable, als who are guilty of greed and irresponsibility, terms that would be considered completely mad it is the state, which continues to grasp and grab. if they were inflicted on any other business com- seems to have misread his And to add insult to injury they then smear the munity. While the financial sector is no doubt people whose pockets they have just picked. highly paid, it also brings in billions of pounds The current economic woes of the UK and every month to the UK. This is effectively free job description Europe are nothing to do with businesses, busi- money, for which we pay a cost called risk: bil- ness leaders and actually little to do with banks lions of pounds, for which we only have to lend either. They are almost entirely to do with politi- the UK’s stability, expertise and knowledge, The Germans are among the best in the world cians and their never-ending desire to spend any rather than build vast manufacturing units at manufacturing, so could you imagine the amount of other people’s money to retain across the landscape. The UK happens to be good German political elite damaging their top busi- power. at finance and attracts the best from all parts of nesses as we do here? While we all hear of Simon Denham is chief executive of London Capital the globe because it is seen as such. Mercedes and BMW we are largely not aware of Group. The City is the key weapon in the UK’s anti- the myriad of Mittelstand companies in recessionary arsenal. For it to function effective- Germany, mainly family owned, who are consid- Agree? Disagree? Got a sharp comment? ly there needs to be an element of public and erably wealthier than anything we see within The Forum wants you to join the debate. political support – yet, rather than seeking to the UK banking sector. In addition, they are not administer a shot in the arm of UK business, the squeezed into one small square mile, but spread COMMENT NOW ON coalition instead appears dead set on giving a out across the whole country. Business policies lethal injection, by scoring easy political points put forward by politicians in Germany are Twitter: @cityamforum; via the tawdry medium of pointless mudsling- designed to promote the well-being of their on the web: cityam.com/forum; ing. Whatever one’s opinion of Fred Goodwin, main earners, manufacturing. Virtually every making the stripping of his knighthood a politi- utterance from our political masters seems or by email: [email protected]. cal priority only underlines the paucity of the designed to do the exact opposite with our own Top responses will be reprinted in The Forum. current administration’s policy for business. top sector. SIMON DENHAM Surely building public confidence in the City, The actual money used to “bail out” the finan- CITYA.M. 6 FEBRUARY 2012 27 In association with Email: [email protected] Twitter: @cityamforum The Forum

RAPID RESPONSES Growing negative Cracking the code Speak your mind Regulation has You are spot on (Britain is now I agree (UK tech sector is posi- The Forum is open for you to an anti-business nation, last tioned for a global challenge, last take part. Got a sharp comment Thursday). These days I find the Tuesday). Better tech education is on one of today’s columns or Conservative party an enigma – vital. Proper programming and rapid response topics? Do you pushed pharma whatever happened to deregula- computer science education is key have another subject relating to tion, low taxes and minimal to homegrown growth. Learning business and the economy you state control, which are the core to code is arguably more impor- want to share your opinion on? drivers for growth in any suc- tant than trigonometry. We want to hear your views. cessful economy? A programmer learns the tools Readers are invited to comment We seem to be doomed to required to get companies started on the web: cityam.com/forum; off a cliff edge decades of low, or no-growth, inexpensively. So why do we con- by email: [email protected]; the politics of envy and a blame tinue to procrastinate over getting and on Twitter: @cityamforum. culture. coding taught in schools? The best responses will be Michael Parsons Matthew Slight reprinted in The Forum. More research is not resulting in Dickens gives a lesson more new drugs HE latest big pharma company to fall victim to the so-called “patent cliff” is AstraZeneca. Its announcement last on the value of money Tweek th at it’s shedding 7,300 jobs glob- ally is in part an acknowledgement th at it does not have sufficient new drugs to replace revenues lost, as a number of its key drugs BY DAVID WOOTTON come off patent. Ac ross th e sector, big pharma companies are reducing profit forecast s, as swathes of OMORROW We must make it evident that we know the blockbuster drugs th at for many years under- marks the bicen- value of money and the value of the City. For the pinned th eir profitability begin to come off tenary of the financial City, this means continuing to demon- patent, including top sellers such as Pfizer’s PHILIP STEVENS Tbirth of Charles strate our connections and our contribution to the st atin Lipitor and Merck’s asth ma drug Dickens, an author nation and the wider economy. We are fundamen- Arimidex. drug safety scares over th e years – for example, whose writing made a tal to the nation’s prosperity – and we will take Given th at a patent term is twenty years, Fen-Phen and Vioxx – by setting ever-more continuous and con- pride in playing our part in the recovery. executives have had a long time to develop th e onerous and stringent requirements for clini- certed effort to marry We need to restore faith in business. The City next generation of drugs to replace th ese top cal trials. the concepts of pros- and financial services are of integral importance sellers. But over th e last decade rates of drug Every year, safety- obsessed regulators create perity and morality. to the UK’s economy. Over the course of a six city approv als by both th e US Federal Drug further hurdles within clinical trials, which It is right, therefore, that, in view of the chal- tour of Northern England and Ireland last month, Administration (FDA ) and th e EU’s European achieve little other th an increasing rates of lenges we currently face, we celebrate the life and it became clear to me that many businesses lack Medicines Agency have decreased. failure and adding millions to the final cost of works of a great writer and Londoner. the confidence to invest and grow. They are wor- In 1996, when th e indust ry was on th e top a drug. The number of mandatory clinical tri- Never before has the importance of the rela- ried about the economic environment, about fiscal of its game, th e FDA approved 53 new drugs. als has more th an doubled since 1980, and tionship between business and morality been more and regulatory unpredictability, and about the cur- In 2011, th e FDA only approved 35, following three times as many patients are needed for pertinent. rent mood music – and so they hesitate before on from dismal years in 2010 and 2009, when each trial. Their average length increased by Recently, public debate has centred on the taking on external support and finance. 21 and 26 new drugs were approved respec- 70 per cent between 1999 and 2006. structure of our economy and the distribution of The recent controversies over bonuses and hon- tively. And when a drug does miraculously make its benefits and burdens. People want to know the ours are a distraction from the real job of financial Frustratingly, th is comes against a backdrop it through th is process, it th en has to contend City’s role, how it serves London, the wider econo- services, which is to provide jobs and facilitate of a significant increase in research and devel- with th e increasing trend of govern ments to my and indeed our communities through support- growth across the country. In order to do that we opment spending by drug companies, which use stringent cost-effectiveness criteria when ing job-creation, growth and trade. need a rational business environment – not one is eleven times gr eater th an it was th irty years deciding whether to make a drug av ailable in In Dickens’s work we can recognise a world where headline-grabbing, short-term political ago, according to research from Tuft s public health systems. very much like our own. In Dombey and Son, the agendas dominate. Un iversity in th e US. Big pharma is – perhaps understandably – heartless businessman Paul Dombey resembles a For many years, the Bank of England issued ten So why is much less coming out of th e responding by buying up generics companies, motif used in modern media. When asked “what is pound notes, with a scene from the Pickwick research and development sausage machine and increasingly involv ing th emselves in con- money?” Paul replies with a list: “circulating-medi- Papers on one side and a portrait of Dickens on th an is going in? sumer products such as toothpaste . um currency … paper, bullion, rates of exchange, the other. This served as a constant reminder of It is true th at science is getting more diffi- This is all very well if th e aim is to prov ide values of precious metals in the market”. Dickens’s idea of how we can use money best: in cult, as th e easy th erapeutic target areas that solid if unspectacular return s for sharehold- But for Dickens, money is far more than simply the service of the wider economy and in the serv- gave rise to the blockbuster drugs have already ers. But if we want th e next generation of buying or selling. Between the pages of his books, ice of our fellow citizens. been exploited. New research has to focus on drugs to tackle as yet intractable health prob- not only does money bring people together and The City must continue to strive for this objec- smaller, more specialised targets for rarer dis- lems – cancer, Parkinson’s and Alzheimer’s – split them apart; it turns ordinary people into con- tive so that we can turn the worst of times – or at eases. This naturally makes th e job of bringing govern ments will need to overhaul completely trasting models – of generosity and of greed. least seriously tough times – into the best of genuinely novel drugs to market harder. th e way we regulate new drugs. Dickens’s work gives us examples of how we times. But these scientific challenges must also be Philip Stevens is managing dire ctor of the Cove nt can find a way through our current difficulties, David Wootton is Lord Mayor of the City of set against increasing risk-averseness of regu- Garden Writers Group, a public policy re search con- bringing together money and its proper use. London. lators, who have responded to high profile sultancy. 28 CITYA.M. 6 FEBRUARY 2012 Wealth Management | Isas The five most useful things The scheme can encourage an interest in personal finance Picture: GETTY to know about Junior Isas

portfolio of over £100,000 at age 18. THEY ARE TAX EFFICIENT As was the case with the CTF, Junior Isas are currently free of income and capital gains tax. Unlike the CTF, the Junior Isa will receive no government contribution. However, it does main- tain the tax-free wrapper element that made the CTF so attractive. PETRONELLA WEST MITIGATE INHERITANCE DUTIES DIRECTOR OF PRIVATE CLIENTS, Contributions can be used to reduce INVESTMENT QUORUM parent’s or grandparent’s estates for inheritance tax (IHT). Individuals UNIOR Isas were launched in have an annual exemption, which November 2011. Any child born can be given away each year, which is before September 2002, who exempt from IHT. This is currently Jdoes not already have a Child £3,000 per tax year. Trust Fund (CTF), can be signed up, as well as all children born after 3 ENCOURAGE FINANCIAL KNOWLEDGE January 2011. The Junior Isa scheme They are a good way to encourage supplants the CTF (though the gov- children to get involved in personal ernment does not contribute to the finance – since they are going to new scheme), and the maximum become responsible for their contribution permissible for anyone accounts at 18 it is a good idea to get with a CTF has been bumped from them involved in the decisions you £1,200 to £3,600 to bring it in line are making for them. with the Junior Isa. MAJOR RESPONSIBILITIES A GREAT WAY TO SAVE Despite the huge advantages offered The Junior Isa allows a child’s par- by making use of the Junior Isa ents, relatives and family friends to scheme, parents should be aware save cash, stocks and shares for when that your child will have full access the child turns 18, at which point the to the contents of the fund at 18. Junior Isa will be converted into an Once in the Junior Isa, funds are adult Isa. unconditionally the property of the You can invest up to £3,600 per child and can’t be revoked for bad annum, which over the course of 18 behaviour. years can add up to a fair sum. It is also useful to note that Investing the maximum allowance between the ages of 16 and 18, the annually with an average return of 5 child is also eligible to invest in an per cent per annum could produce a adult Isa. NEWS IN BRIEF

TAXED ON TIME PAWS FOR THOUGHT FOR FAT CATS According to HM Revenue and Customs According to research from More Than (HMRC), this year saw a record 9.45m Pet Insurance, fish and chips, chicken self assessment tax returns filed on tikka masala and lasagna are among the time, with a record 7.65m filed online. nation’s favourite dishes to give to pets. This means that 90.4 per cent of tax- 72 per cent of cat and dog owners payers met the deadline – an increase of admit to regularly feeding their pets 4 per cent on last year and the highest leftover fast food and takeaways. on-time filing since HMRC was created. As a result, cat and dog owners are The busiest day for online returns was being hit with vets bills as a result of 31 January, when HMRC received nearly their pets’ ill health. 445,000. HOUSE PRICES SOFTENING BRACE YOURSELF FOR THE COLD According to the Nationwide Building The AA is concerned that many home- Society, house prices in Britain declined owners may be ill-prepared for the cur- by 0.2 per cent in January, but are 0.6 rent Siberian weather conditions, after per cent higher than one year ago. The being lulled into a false sense of security price of a typical home in Britain is now by the unseasonably mild winter to £162,228. date. The softening of UK house prices is According to the AA, last winter’s being blamed on the challenging eco- weather caused damage in over 7m nomic conditions prevailing in late 2011, households, leaving homeowners with with the UK economy contracting in the £3.1bn in repair bills. final three months of the year. CITYA.M. 6 FEBRUARY 2012 29 Wealth Management | Markets

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Money and brains inspire business From the UK to Silicon beyond borders PHILIP Valley and back again SALTER FEATURES WRITER Philip Salter talks with CITY A.M. David Richards about RADE across borders – natural and man-made – binds humanity together: “When goods do not building his soon to be cross borders, soldiers will”, surmised the French Teconomist Frédéric Bastiat. Trade enriches us, listed tech company both in our standard of living and in the variety of our cultural experiences. And it makes others better off too, LOBALISATION throws up some as if lead by an invisible hand. interesting associations. The west- Some countries are better at trade than others and ern world’s need to stay awake sup- the British have a noble history in this regard. It is Gports the coffee industries of Latin therefore a shock to learn from Stuart Watson of Ernst America, Southeast Asia, and Africa; the & Young (see article below) – who heads up Ernst & desires of Japanese, Indians and Chinese Young’s UK Entrepreneur of the Year team (see consumers to imbibe is helping the UK’s www.eoy.co.uk) – that the UK’s small and medium-sized Scotch whisky industry flourish. No less businesses are less likely to export than their EU equiv- interesting is the case of WANdisco – a alents. We have the barrier of the channel, but culture tech company that distributes its product can, and should, trump this. It’s time for UK entrepre- to every conceivable place (including the neurs to get back on their bike, boat or plane. North Pole) – but splits its offices between That is exactly what David Richards did (see article Silicon Valley and Sheffield. Richards is taking right). He moved to Silicon Valley to make his fortune, David Richards left the UK for Silicon Aim for imminent but his native Sheffield is home to the majority of Valley 13 years ago. A veteran of several London listing WANdisco’s workforce (a similar model to Cambridge’s successful startup companies, it was at a Autonomy). drinks party in Silicon Valley that he met Richards is passionate about Sheffield and Silicon Yeturu Aahlad, now chief scientist and CV | DAVID RICHARDS Valley. He’s got strong views on UK private equity – too inventor at WANdisco. Aahlad many accountants, not enough proven business people approached Richards claiming to have a Number of staff: 70 Talents: Startups, entrepreneurship, motivat- – and the UK tech industry: he isn’t convinced by the great idea for a piece of technology that Age: 41 ing people to achieve the improbable and hype surrounding Silicon Roundabout. As with Stanford he had been working on for 5 years: “It Born: Sheffield (hopefully) being a half-decent husband and University in the US, he thinks the Cambridge cluster turned out he was one of the top people and its relationship to its university are along the right in his field in the world, previously archi- Lives: San Francisco Bay Area father. lines, but cautions: “These things naturally happen, tect for distributive computing at Sun Studied: University of Huddersfield Favourite business book: Crossing the rather than being contrived.” It’s refreshing to hear a Microsystems.” Aahlad’s 20 page proof Drinking: Micro-brew beer when in the UK Chasm by Geoffrey Moore constructively critical perspective, as most entrepre- formed the algorithm around which the and Californian wine at home in the US Motto: "We cannot solve our problems with neurs’ default public setting is indefatigable optimism. company was built. Reading: The Penguin History of the World the same thinking we used when we created It’s fashionable to ponder on the globalising impact WANdisco was founded in 2001, (New Year’s resolution to finish it this time) them." (Einstein) of technology, but it is undenibaly opening up markets although Richards decided three years ago and Civilization: The West and the Rest by First ambition: To play cricket for Yorkshire that would otherwise be harder to crack. However, to expand back home in Sheffield, where Niall Ferguson and England even though Facebook could have been started any- he currently employs 40 people. The func- where, it’s no fluke that it flourished in Silicon Valley. tions of the business are now split can take days to download all the source open source software. WANdisco are the There is no equivalent. between sales and marketing in the US code.” Through “active-active replication major corporate sponsor of Subversion: For technologists who don’t fancy leaving these and software engineering and support in over a wide area network” exact copies of “Half of all the world’s software is devel- islands just yet, Cisco, with support from JP Morgan, Sheffield. “These are not call centre jobs,” source can be wo rked on at the same oped and stored inside Subversion.” Bird & Bird, DNX and Octopus Communications, has says Richards, “they are high-end technol- time anywhere in the world. Richards has WANdisco profits from the extra tools announced “an annual open innovation competition to ogy jobs. I don’t want any of these people accrued many of the Fo rtune 1,000 com- and services companies add to this. discover and reward the finest examples of the UK’s to leave, but if they did, every single one of panies – Hewlett Packard, Moto rola and The next step is an initial public offe r- most innovative start-up digital businesses.” The overall them would be at the top of their field.” Honda, for example – as customers. ing (IPO) on the UK’s Aim market on 30 winner will receive a total prize package of approxi- It isn’t straightforward explaining Previously, as president and chief exec- April: “I think if you’ve got a growth story mately $200,000, made up of $100,000 cash, 12 what WANdisco – an acronym for “wide utive of Insevo, he raised venture capital like ours – which is 50 per cent growth months of mentoring from Cisco and a 12-month sup- area network distributed computing” – from 3i. But he soon found the relation- last ye ar alone – I feel pretty confident.” port package covering PR, marketing and legal servic- does exactly. But Richards does a pretty ship too restrictive. He went on to form Given that every WANdisco employee has es. The competition has just opened (entries will close good job: “One of the problems with soft- Librados (meaning free men – free, that either stock or options in the comp any, on the 31 March), with the awards taking place on 12 ware development is that if you have a is, from private equity). Librados, and perhaps a few more entrepreneurs of his September (www.thebigawards.co.uk). central sever, say in the United States, but now WANdisco, we re able to avoid private quality will choose to go it alone. Silicon engineers in India, China and the UK, it equity, he says, by leading sales through Sheffield certainly has a nice ring to it.

Singapore. dinary results. In one recent example, a Shanghai, where local suppliers do not However, entrepreneurs need to under- family run shoe businesses in the UK, have the know-how. The company is LOOK BEYOND stand the particular needs of such differ- through collaboration with one of its sup- receiving an influx of orders, with enor- ing markets. The strategy is higher risk pliers in India, decided to cater to the mous opportunity for expansion. than staying in familiar territories, so country’s growing middle class. The com- There are many examples of businesses, THE UK TO CASH many adopt a step-by-step approach. pany began a joint venture with an Indian big and small, who have entered these Initially, entrepreneurs often use an partner and a concept fast growth markets. For the many that agent to test the waters. This could that played on the have not yet taken the plunge I think it IN ON GROWTH be followed by a joint venture with British design, while offers the best opportunity for growth a local partner, before a full blown trad- also innovating with up- and there is still a window of opportunity. ing operation. Throughout, it is impor- to-date and efficient In a recent report, we set out the opportu- tant to keep a keen eye on the retailing – such as nity for an increase in net exports, which STUART WATSON opportunities and risks, and brief through store layout and we estimate could give the UK economy a shareholders, bankers, key employ- connecting sales forecasting £20bn lift by 2020. At the very least, we ees and advisers on developments to supply chain manage- should aim to match the EU average of HE UK is full of chief executives fac- to maintain their support and ment. They now have a 50 per one in four SMEs exporting by 2020 – ing the harsh reality of uncertain exploit their existing knowledge and cent share of a rapidly expand- compared with only one in five currently. home markets for years to come. connections to those markets. The ing Indian company. In the end, pretty much the oldest les- TSo, with forecast sales flatlining – best companies maintain agility In another case, the chief sons in the book applies to entrepreneurs what is an entrepreneur to do? in entering – and knowing executive of an architect firm, addressing markets in far flung corners of Successful companies are finding new when to exit – a new specialised in prestige brand the world – getting face time with the cus- customers and markets beyond our market, learning how to car showroom design, has been tomer, understanding in depth what shores. In our recent global survey of over cater to its customers’ asked by his customer, who is works for them, and how you can deliver 400 companies, India (34 per cent) and demands. already doing well in China, to a profit. For those seeking growth, the China (33 per cent) were cited as the most Those with drive, visit the country. They plan to clear message is to rack up more air miles. attractive economies for potential passion and agility replicate the high standard UK Stuart Watson is Ernst & Young UK leader of exports – followed by Brazil, Russia and can produce extraor- showrooms in cities like Entrepreneur Of The Year. VALENTINE’S DAY 31 GET THE VERY BEST | Travel WITH THE HELP OF OUR Lifestyle GUIDE, TOMORROW Rich pickings in poor man’s Verbier Bypass the crowds and hefty prices of Verbier by staying in a luxurious chalet in La Tzoumaz, says Zoe Strimpel

T’S unlikely you’ll have heard of La Tzoumaz. With just 300 permanent residents, few hotels and no town Icentre (or après ski) to speak of, it’s not the sort of place you’d expect to find a ten-minute ski from Verbier, Switzerland’s sexiest resort. No: La Tzoumaz (rhymes with satsuma) is quite definitely Verbier’s shy, unfashionable, and very diminutive little sister. Which is why for avid skiers, families and those who find Verbier prices laugh- able, it’s a very clever alternative indeed. La Tzoumaz is smaller, cheaper, and offers the same skiing as its ritzier neighbour, with an area all its own that’s good for beginners and intermediates. Tire of its slopes and you’ve got easy access to the rest of the “4 vallees” (Verbier, Nendaz, Veysonnaz and Thyon). Is it the Alps’ best-kept secret? Hard to say. But word on the piste is that private investors are clocking on to La Tzoumaz: a new lift opened this season linking Le Carrefour with Savoleyres (at the top of the La Tzoumaz gondola), further opening up access to the rest of the valleys. A new complex of apartments, shops and restau- rants is about to be built opposite the LA TZOUMAZ | WHY IT APPEALS main lift, and about 20 chalets are being built each year. 1. No lift queues: There are no queues for the main So far, so…what? Where’s the sparkle, La Tzoumaz lift, compared with the mad scramble you ask, where’s the luxury? It’s at Chalet that there can be at Medran, the main hub in Auriane, a chalet to compete with Verbier. It takes just eight minutes to get to the Verbier’s finest, only more affordable. top of the Savoleyres ridge in the new gondola, so Auriane, owned by an endocrinologist you can access Verbier’s slopes and the 400km of from Islington, is the first – and so far the the four valleys quicker than from Medran itself. It only – five-star chalet in La Tzoumaz. And within ten minutes of arriving, we were ter. To follow was warm pear tartin with Clockwise from top then takes just another eight minutes to get over what a beauty it is. in the hot bubbles and freezing air, apple sorbet, raspberry coulis and – if you left: Chalet Auriane to Le Carrefour, half way up Verbier. Inside, the richest materials make it Lanson in hand, nibbling foie gras toasts. please – home-made apple puree. The by night; sledding in 2. Empty slopes: The pistes in La Tzoumaz are rel- feel luxurious but incredibly warm. About those foie gras toasts. One of the next night was local mushroom risotto, Le Tzoumaz, atively empty, even in peak weeks, compared to There’s a big, windowy living room with most decadent, impressive aspects of the venison in blueberry sauce and home- Auriane’s biggest the busy traffic on the slopes of Verbier. furs thrown over elegant leather sofas and Auriane experience was the British pri- made chocolate fondant. bedrrom Verbier; Instructors come to La Tzoumaz on their days off. chairs and a fire. The dining room table – vate chef and his partner in crime (and The next morning, emerging from our one of the smaller 3. Good for all levels of skier: La Tzoumaz is per- connected to the spacious kitchen – looks real-life partner), the Dutch housekeeper. mountain-view rooms (all with Apple rooms in the chalet. fect for beginners and intermediates, but it also out on the mountains with a specially- Both used to have high powered jobs in TVs), breakfast featured delicious local has some excellent, safe and easily-accessed off- commissioned birch tree sculpture lean- the government and sacked it all in years eggs, sausages and bacon for those who piste. It is also only minutes away from all fabu- ing over it, bringing the outdoors in. The ago to become seasonal workers. God is in could handle it – otherwise, there was a lous the skiing on offer in Verbier. rooms are mostly small but chic and cosy, the details, which, via the owner Paul, fresh-baked loaf of still-warm wheaten with great views. The only stand-out they grasp perfectly. So when you arrive bread, and two types of fresh baguette, 4. Short transfers: Sion airport is just 30 minutes room is called Verbier (others are St after a five hour journey (an hour and a cereal, yoghurt etc. away. Snowjet has flights from Stansted three Moritz, Klosters and so on), which is enor- half from Geneva by car), the fact that the At last: the skiing. Up the La Tzoumaz days a week on Fridays, Saturdays and Sundays. mous, has a bath with a view in the mid- fizz is chilled and waiting with beautiful gondola we went (no queues) to Only 1.5hours from Geneva (half an hour closer dle of the room, and an enormous stem flutes means something. So does Savoleyres, the south-facing Verbier ski than Verbier, and much less windy – just 15 min- fairy-tale bed made out of birch trunks the quality of the foie gras: this is not area. A few runs to warm up on the wide, utes of windy roads). and branches. cheap stuff from the hypermarche, but pleasant slopes of La Tzoumaz itself, and 5. It’s cheap: Four Swiss francs for a beer in La Perched atop a slope, above a cluster of proper, creamy fresh liver atop buttery off we went down to Le Carrefour – an Tzoumaz versus 10-20 in many Verbier spots. other chalets, Auriane has its own funicu- biscuity orbs. eight minute ski away – and half way up Meals out are also half the price of the equivalent lar to take guests, luggage and skis from The Auriane experience must be how it Verbier. It’s faster to get to Verbier this in Verbier. the car to the house, and from the house was to be an aristocrat in the old days: way than it can be from Mondran, 6. to the slope. Sadly it was broken when we pre-dinner drinks, whisky post-dinner, a Verbier’s traffic-clogged hub. Good snow. The majority of the slopes in La arrived on an icy night in January so we selection of terrific wines with food all La Tzoumaz is a clever way into one of Tzoumaz face north so they hold their snow pretty well. had to go the hard way: a very steep, seamlessly at the ready. The very best the best, but most expensive resorts in almost ladder-like flight of stairs. Still, it chocolates after dinner, and wonderful the world. Staying at Chalet Auriane 7. Quiet: If you want early nights, this is the spot. was the thought that (almost) counted: local cheeses. Great coffee. Fresh-baked clinches the deal: here you can really have La Tzoumaz, means “resting place for cows”, and the funicular is a suave, glassy machine cake and hot cocoa when you come in your luxury cake and eat it too, whether comes from “tzoumer”, the local patois for “to that proved its efficacy on our return from skiing, at the ready if you want it. you’re here to ski, bathe, indulge – or rest”. It has just 300 permanent residents, and journey from chalet to car. As for getting Your wish is their command – often preferably, all three. these numbers can rise to 7,000 in peak season in from the slope to the chalet, it was a case before you’ve even had the wish. the winter. of leaving the skis at the top of a sharp The food is serious, too. Dinner on the Chalet Auriane in La Tzoumaz (tel: 07903 8. Non-skier friendly: There is plenty to do in La incline and sliding down – at speed – on first night featured a mountain salad 018549; www.chaletauriane.com) is Tzoumaz for non-skiers. It has the longest tobog- our rumps to the front door. And, of (local lardons, pine nuts, walnuts, leaves) available on a sole occupancy basis and gan run, at 10km, in western Switzerland, there is course, clambering up in our ski boots. and the best beef bourguignon I’ve ever sleeps up to 12 guests in four luxury en- lots of snow-shoeing and winter hiking in and Which is all good snowy fun. tasted, an aromatic mixture of melting suite double rooms and one bunk room around the valley alongside the bisses, the ancient The chalet also has a gleaming new stew with caramelised shallots, served with four adult-sized bunk beds. It costs irrigation waterways, which are all signposted. sauna/steam room and outdoor Jacuzzi. with gratin dauphinoise, batons of carrot from £825 per person per week fully Both of which most definitely worked – and green beans glazed with garlic but- catered, excluding transfers. 32 Lifestyle CITYA.M. 6 FEBRUARY 2012

Jenny Forsyth joined in the Three Valleys’ Ski like an amateur, Enduro to discover the thrills and spills of ski competition HREE, two, one, the race countdown race like a professional began, as my heart knocked treble- time. With my ski racing bib on, Tadrenalin pumping, I was staring down a steep, crisply-groomed slope, WANT TO GO? | FAST FACTS preparing to race it in my first ever down- hill speed run. Then the horn sounded Ski Club of Great Britain Leaders and I was off. I skated a few steps to pick The Ski Club of Great Britain hosts a Ski Club Leader in up speed, just as I’d seen the professionals Val Thorens, Courchevel and Meribel (among 34 resorts do, tucked into a bend to keep it up, just in Europe and North America) from early December to like they do on Ski Sunday, then sliced into mid April each winter season. Ski Club Leaders ski with a turn to slow down after the finish line, members each day (except Saturdays) and offer a var- just like, er, Bridget Jones. Arms flailing, ied skiing programme suitable for all standards except head whirring with thoughts of broken beginners. The service is free as part of the Ski Club of Great Britain membership. Membership costs from arms and hospital, I finally came to a safe £20. www.skiclub.co.uk/leaders stop and allowed myself a moment’s satis- faction. The Three Valleys Yes, it must have been one of the most The Three Valleys are home to eight ski resorts that are inelegant descents of the day, but at least linked together by a unique network of ski lifts and ski now I can say I’m a ski racer. And it seems runs. The Three Valleys is the largest ski area in the I’m far from the only amateur skier with world with 600km ski slopes and 174 ski lifts. dreams of being Chemmy Alcott for a few www.les3vallees.com hours. Celebrating its 10th year this year, Accommodation in Val Thorens – Pierre & Vacances the Three Valleys’ Enduro one-day event I Pierre & Vacances is France's leading holiday apartment took part in has grown from around 300 rental company. We stayed at Le Tikal residence in Val in its first year and will be capped at 1,500 Thorens close to the resort centre and easy access this time round. direct to the slopes. Competitors are in teams of three in www.pv-holidays.com / 0870 0267 145 either professional, sporting amateur or family divisions, navigating their way by Accommodation in Courchevel 1850 – Flexiski ski or snowboard around the vast Three We stayed at Hotel Saint Louis in Courchevel run by Valleys ski area in France and competing Flexiski. The hotel is situated close to the Bellecôte piste in events including speed skiing, freerid- for convenient doorstep skiing and is five minutes walk ing, slalom and a jump onto a giant from the centre of Courchevel 1850. With flexible dura- airbag. “Once people have done it they tions available throughout the season, Hotel Saint Louis want to come back every year and we’re is perfect for a short ski break. having to restrict numbers now,” said www.flexiski.com / 020 8939 0864 Vincent Lalanne Cloute of Three Valleys Flights, transfers and rental tourism. “People like the experience of rac- Flights were provided by Swiss International Air Lines ing and going on specially prepared runs, www.swiss.com and transfers by Three Vallee Transfers the fact that you go on all sorts of different www.3vt.co.uk. Ski rental was provided by Skiset races, they like the general ambience and www.skiset.co.uk the nice lunch and party afterwards.” Similarly, the City Ski Championships – well known for discovering the best ski Racing is not for the faint professional while skiing like an amateur. ley, Orelle, keen navigation is essential. haps a somersault? – into the giant airbag. legs (usually hidden under desks around of heart. I was part of a Ski Club of Great Britain Crucially, my well-directed teammates also There I was again, lined up for take-off, the Square Mile) – expects to host around team, which was just as well. On regular managed to lead our team to the giant though perhaps feeling a little less ambi- 220 gung-ho racers from 40 firms in mid- skiing holidays I rely on Ski Club leaders to Savoyard buffets – loaded with cheese and tious than at that first starting gate. “No March at its new site of Crans Montana in lead me round the mountain, which elim- chocolate – which cropped up at the bot- snowplough, no snowplough,” yelled the Switzerland. inates the drudgery of having to take off tom of many of the competition finish race administrator as I tootled towards the And although there is scope at these your gloves on the lifts and pore over lines, though unfortunately we didn’t lift-off ramp. events for all those lycra-clad Olympic- crumpled ski maps. It’s the ski equivalent have time to sample the giant tartiflette And with that I straightened up, picked style skiers, who neatly clip the slalom of finding your way by Sat Nav. on offer in Meribel-Mottaret. up speed, flew into the air and sailed into posts as they whizz by, there’s also plenty Here, with just a day to scarper around At the end of the day, perhaps skipping the air-filled bag. It was a landing much of competitive fun to be had for those Courchevel, Meribel and Val Thorens, that heavy meal was a benefit, as we akin to my newfound career as a profes- whose main ambition is just to race like a almost to the border with the fourth val- aimed for a light and stylish leap – or per- sional ski racer – a very satisfying flop. TRAVEL NOTES ZOE STRIMPEL Literary London V-Day dinner at Brown’s Cupid’s arrow strikes at the Yeatman, Portugal Girl With Dragon Tattoo package at Dolder Grand This romantic package is Head to this swanky Porto hotel A special package at the Swiss perfect for those who find for a delicious V-Day package of hotel in which several scenes exquisite poetry and great two nights in a Superior Room were filmed includes dinner in food. A tour of the beautiful, or Suite with terrace and the Garden Restaurant, a cine- private London library is fol- panoramic views; breakfast and ma ticket, limousine transfers lowed by a three course din- a tasting menu created by to and from the hotel, a signa- ner and fizz at the hotel’s Michelin-star Chef Ricardo ture drink in the bar and a copy Albemarle restaurant by Costa. 10-14 Feb. From €150 of the Stieg Larsson book. From Mark Hix. £160, 14 Feb. per person per night. +351 22 CHF 1,650 (approx £1,136 To book, call 0207 518 013 31000. GBP) based on two people 4060 www.yeatman.com sharing, including breakfast.

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Plus, tight a on wedding a arrange to how reveals Moneypenny Mrs 8PM 4, CHANNEL SUPERSCRIMPERS Hamilton. Pete guide St by of Mount tour Michael’s a given is she when dream childhood a fulfils actress The QUENTIN CAROLINE WITH CORNWALL the throne. to acceded she after years 60 II, Elizabeth of achievements and life the explores Marr Andrew series. New 9PM BBC1, QUEEN DIAMOND THE        T1 8PM ITV1, 23 19 16 14 12 8 6 5 4 2 1 DOWN     modest (3)modest Affectedly obligation (4) Financial or maintain (6) report Verbally (5) seaweed Dried (7) sight of out Place At great height (5) Callous (9) (4)glass Section of (7) ore from metal for extracting plant Industrial (3)compartment driver’s Train (6) inplace meat Spit for holding  33 34 Sport CITYA.M. 6 FEBRUARY 2012 SPORT | IN BRIEF Robshaw inspires BAD LUCK OF THE IRISH | Wales snatch win Lawrie triumphs in Qatar GOLF: Former Open champion Paul Lawrie shot a final-day 65 to win the Qatar Masters. The tournament had been reduced to 54 holes after strong encouraging start winds allowed only three hours of play on Friday. Lawrie, who carded 69 and 67 in the first two rounds, finished on 15 at times quite literally, fight for his team it was under, four shots clear of Australia’s JOSH LEWSEY’S all very gladiatorial and I’m sure the guys Jason Day and Sweden’s Peter Hanson. POST MATCH around him found his actions inspiring. O’Sullivan back to winning ways PATIENCE AND DISCIPLINE SNOOKER: Former world No1 Ronnie VIEW There was no real pattern to England’s play and O’Sullivan captured his first ranking title that’s understandable at this early stage – I’m in over two-and-a-half years after beat- sure it will come in time. The biggest change I ing Stephen Maguire 9-7 in the German noted was in the team’s ability to remain calm Masters final. in the heat of battle. Scotland haven’t scored a try seemingly since the Doomsday Book was written so when you play them it’s all about Results keeping the penalty count low. It sounds sim- ple, but if you don’t dive in and avoid needlessly 98I:C8PJGIL< 8ij\eXc%%%%%%%%%%%%%%%%%% *  . 9cXZbYlie%%%%%%%%%%%%%%%%%%% (  ( conceding points you’ll win more of these tight mXeG\ij`\)#*/#-) G\[\ij\e*( games than you’ll lose. FocX[\$:_XdY\icX`e+'#,+ 8ik\kX,(#?\eip0' 8kk1,0#-+* TEAM SPIRIT THE KEY DXe:`kp%%%%%%%%%%%%%%%% )  * =lc_Xd%%%%%%%%%%%%%%%%%%%%%%% '  ' NOT ALL ABOUT TITLE DEFENCE 8^l\if(' g\e #9X`i[*' f^ #;q\bf.) 8kk1+-#0-* It was never going to be pretty up at As strange as it sounds I’m not convinced win- Efin`Z_%%%%%%%%%%%%%%%%% '  ) 9fckfe%%%%%%%%%%%%%%%%%%%%%%%% '  ' Murrayfield but Saturday’s 13-6 victory repre- ning the Six Nations should be England’s main JlidXe.'#G`cb`e^kfe/, 8kk1)-#*,/ sented an encouraging step forward for what focus. With a win under their belts and Italy up HGI%%%%%%%%%%%%%%%%%%%%%%%%% (  ( Nfcm\i_Xdgkfe%%%%%%% '  ) QXdfiX(- AXim`j+- was a largely inexperienced England side. next, clearly they’re in a position to defend 8kk1(.#*,( ;fpc\.( Head coach Stuart Lancaster spoke at their title, but for me it’s more about develop- Jkfb\%%%%%%%%%%%%%%%%%%%%% '  ' Jle[\icXe[%%%%%%%%%%%%%%% '  ( length in the build-up to the match about team ing a side built around youngsters like Owen 8kk1).#.(. DZ:c\Xe-' N\jk9ifd%%%%%%%%%%%% '  ( JnXej\X%%%%%%%%%%%%%%%%%%%% '  ) spirit being at the heart of his values. On first Farrell, who took to Test rugby like a duck to =fikle\,+ J`^li[jjfe,, evidence he’s quickly been able to foster a water. The end goal for this group should be 8kk1)+#).+ >iX_Xd,0 strong bond amongst this group of players – the World Cup in 2015 and we shouldn’t bur- N`^Xe%%%%%%%%%%%%%%%%%%%% '  ( Warren Gatland admitted his team were “reasonably lucky” after Leigh E\nZXjkc\%%%%%%%%%%%%%% (  ) 8jkfeM`ccX%%%%%%%%%%%%%%%%%% ( ( and is not the sole responsibility of one man, Josh Lewsey was speaking courtesy of 9X*'#:`jj\.( B\Xe\+,18kk1+/#,-0 but I was really impressed by what I saw from Halfpenny’s (pictured above, centre right) last-minute penalty earned them a 23-21 win GamePlan Solutions: Managing high over Ireland in their Six Nations opener. Jonathan Davies scored two tries and George skipper Chris Robshaw, who reminded me of a profile and popular sport stars; speak- young Lawrence Dallaglio. With his ripped North grabbed the other as the visitors edged a pulsating encounter in Dublin. Rory Best ers, leaders, motivators, ambassadors and Tommy Bowe crossed for Ireland. Picture: GETTY email [email protected] shirt, shoulders pinned back and willingness to, www.gameplansolutions.co.uk 2012 Laureus World Sports Awards, London, Tonight Superstars flock to London with their eyes on the prizes Cream of 2011 gathers to recognise greatest achievers of last 12 months at global sporting calendar’s premier awards ceremony ONDON tonight becomes the capital city of with their achievements and success. sport when some of the greatest names to Lennox Lewis, London-born former undisput- have competed for medals, titles and cham- ed heavyweight boxing champion of the world, Lpionships gather for the 2012 Laureus and Arsene Wenger, the Frenchman who World Sports Awards. through Arsenal has made London his adopted Hollywood star Clive Owen will host the pre- home, are among a fabulous array of sports Nadal was 2011 mier global sports awards amid the majestic stars and personalities attending the 2012 Laureus World splendour of Central Hall, Westminster where Laureus World Sports Awards. Sportsman of the Year stars of sport, stage, screen and fashion will Nominees will be looking to follow in the honour and applaud those sportsmen and footsteps of Rafael Nadal, who was crowned Picture: GETTY sportswomen who have proved so inspirational Laureus World Sportsman of the Year in 2011.

THE TOP sports names are in and Tour de France winner Carmelita Jeter. Messi’s face strong competition from Northern Ireland who won David Weir, the British London for the Laureus World Cadel Evans to the Laureus mighty Barcelona are up for the England cricket team, still the US Open. Paralympic wheelchair Sports Awards. World Sportsman of the the Laureus World Team of world No1 despite the current If McIlroy’s triumph was athlete, last April raced to a World No1 ranked tennis Year award. the Year award, but they face Test series against Pakistan. the product of a precocious fifth London Marathon title. player Novak Djokovic, fresh Those competing to strong competition from, How about world 5,000m talent, Darren Clarke’s That makes him a challenger from his extraordinary become Laureus World among others, the All Blacks, champion Mo Farah, the victory in the Open for the Laureus triumph in the Australian Sportswoman of the Year holders of rugby union’s World epitome of focus and Championship was born on a Sportsperson of the Year Open, has flown in specially to include Yani Tseng, world No1 Cup. dedication, for the Laureus wave of sheer emotion. Beset with a Disability. see if he has beaten the likes women’s golfer and winner of Will British be best? Red World Breakthrough of the by tragedy in his personal life, And don’t forget BMX rider of football maestro Lionel five Majors, Wimbledon Bull was in the Team category Year? Or maybe the prize will Clarke is a strong contender Jamie Bestwick, nominated Messi, Formula One world champion Petra Kvitova, and too, with their all-conquering go the way of Rory McIlroy, for the Laureus World for Laureus World Action THE AWARDS champion Sebastian Vettel IAAF world 100m title holder Formula One car, but they the toussle-haired golfer from Comeback of the Year. Sportsperson of the Year. CITYA.M. 6 FEBRUARY 2012 Sport 35

DOUBLE DEMBA | Ba and Cisse move Newcastle up to fifth

NEWCASTLE striker Papiss Salvage act Demba Cisse (right) enjoyed a debut to remem- ber as his wonder goal secured his side a 2-1 victo- ry over Aston Villa. Demba Ba fired Newcastle into a not enough 30th minute lead only for Robbie Keane to equalise for Villa in first half stop- page time. But Cisse, a £10m January signing from Freiburg, endeared for Ferguson himself to his new fans with 19 minutes left with a goal that moved Newcastle up to fifth in the Premier came on he had the Chelsea defence League table. CHELSEA on toast. But it’s not easy coming 3 back from 3-0 down. That’s a massive Picture: GETTY effort.” MANCHESTER UNITED That United trailed at the break 3 owed much to referee Howard Webb’s failure to spot Gary Cahill’s trip on ▲ FOOTBALL Danny Welbeck, which prevented the United forward a clear goalscoring BY JAMES GOLDMAN AT STAMFORD BRIDGE opportunity, and Daniel Sturridge’s MANCHESTER UNITED staged a trade- ingenuity in the build-up to Chelsea’s mark act of escapology, coming from 36th minute opener. 3-0 down to rescue a draw – but their The former City forward twisted manager Alex Ferguson insisted it past Patrice Evra and when his cut- still felt like two points dropped as his back flicked off David de Gea, Evans side failed to keep pace with rivals was powerless to prevent the ball and Premier League leaders bouncing off him and into the net. Manchester City. Chelsea doubled their lead a Unlucky to be trailing at half-time minute after the re-start when Mata to a Jonny Evans own goal, United met a Fernando Torres cross with a appeared destined for a fourth league thunderous volley at the far post and defeat of the season when they con- when Luiz’s header found the net via ceded twice within six minutes of the Rio Ferdinand’s shoulder soon after, a re-start to Juan Mata and David Luiz. rout looked on the cards. A brace of Wayne Rooney penalties But two Rooney penalties, both hauled the champions back into the converted with power and precision, contest, however, and substitute within 11 minutes put a different Javier Hernandez capped a thrilling complexion on proceedings. comeback with an 84th minute head- Indeed, United were creating er – yet the outcome still failed to sat- chances at will by the time Petr Cech isfy his manager. denied Rooney a hat-trick, only for “It is two points dropped, but we Ryan Giggs (left) to collect the played so well apart from rebound and cross for Hernandez, the 10 minutes after who powered a header past the half-time,” said Chelsea goalkeeper. Ferguson, whose side now trail City by two points. TOP FOUR “I perhaps TEAM PLD W D L F A PTS should have played Man City 24 18 3 3 63 19 57 YOUR WAIT Hernandez Man United 24 17 4 3 59 24 55 from the IS OVER start as Tottenham 23 15 4 4 44 25 49 when he Chelsea 24 12 7 5 44 29 43 Be one of the first to purchase seasonal hospitality at Chelsea FC for the 2012/13 season. Swann pleased spin twin Our wide range of packages are tailor-made to suit your requirements, ensuring you get the most out of Panesar proves his worth your hospitality.

TRY ONE OF OUR PACKAGES JOIN THE WAITLIST NOW, FOR YOURSELF CONTINUED FROM PAGE 36 end the series as his side’s leading COMPLETELY FREE & SECURE batsmen are going to go out and wow wicket-taker with 14 from just two THE BEST AVAILABLE SEATS everyone tomorrow. Our batsmen Tests. WITH OUR PRIORITY ALLOCATION have certainly got a point to prove. “People were very quick to jump on Vs “Each of the batsmen will have Monty’s back a couple of years ago come up with game plans that differ when he was left out,” he added. “But from the Abu Dhabi debacle in he’s remained a very fine CHELSEA TOTTENHAM To sign up or for more the second innings because bowler and he’s bowled information please contact us: that simply wasn’t good exceptionally well in the SATURDAY 24TH MARCH KO 12.45pm enough for a Test team, two games he’s played [email protected] not to be able to chase over here.” FROM £395+VAT E. that total against any- Even if Panesar’s 0871 223 9940 one. heroics with the ball T. “Younus and Ali bat- prove to be pivotal in a ted superbly. But it may matchwinning effort, be the worst thing they Swann admits England could possibly do, because should be heading into the they may have shown us how fourth day in a position to win to bat against the spinners on this the series rather than record a victo- pitch.” ry in a dead rubber. Swann also reserved praise for his “This game should be the decider,” spin twin Panesar (inset), who, after a Swann added. two-and-a-half year Test exile, has pro- “If it wasn’t for two hours of vided the highlight of the tour from absolute madness in Abu Dhabi it an English perspective with a tri- would be. We have to salvage some- umphant return that will see him thing from this series.” 36 CITYA.M. 6 FEBRUARY 2012

“ROBSHAW REMINDS ME OF DALLAGLIO” WORLD CUP WINNER Sport LEWSEY’S VERDICT: P34 AVB blasts Capello war referee after with England United stage chiefs over comeback CHELSEA 3 Terry snub MANCHESTER UNITED 3 ▲ FOOTBALL

▲ BY JAMES GOLDMAN AT STAMFORD BRIDGE FOOTBALL board-level discussions, after Chelsea skipper Terry’s trial was adjourned CHELSEA manager Andre Villas-Boas BY FRANK DALLERES until July, meaning he stood to cap- admitted he was baffled by the per- ENGLAND head coach Fabio Capello tain England at this summer’s formance of referee Howard Webb last night declared war on his pay- European Championships. after two contentious penalty deci- masters, the Football Association, Terry is accused of committing a sions helped Manchester United over their decision to strip John Terry racially aggravated public order retrieve a three-goal deficit and keep of the captaincy because of his ongo- offence towards QPR’s Anton their Premier League title hopes alive. ing trial for alleged racial abuse. Ferdinand in a Premier League match The Blues led 3-0 just six minutes In an extraordinary public out- in October. He denies the charge and into the second half courtesy of a burst that reveals the divisions within has entered a not guilty plea. Jonny Evans own goal, an explosive the game’s powerbrokers over a high- The FA did not block Terry’s cap- Juan Mata volley and David Luiz’s ly sensitive issue, Capello said he taincy or call-up to the squad for deflected header. But two successful did not support the FA’s move the November friendlies penalty conversions from Wayne and openly criticised the against Sweden and Spain Rooney and a typical poacher’s effort intervention. and Capello made clear from Javier Hernandez saw United Asked whether he his wish to pick the 31- stage a miraculous recovery. agreed with the FA’s deci- year-old. But his waging Villas-Boas, however, claimed Webb sion, Capello said: of a public fight just was the catalyst for the visitors’ come- “Absolutely not. I spoke months before a major back and took particular issue with with the chairman and I championship means the award of the second spot kick told him that I don’t think the remainder of his £6m- which followed a foul by Branislav someone can be punished a-year contract, which Ivanovic on Danny Welbeck. until it becomes official. I expires after Euro 2012, looks “I don’t know if Howard was com- thought it fair that John Terry set to be fraught. pensating for anything from the first keeps the captain’s armband.” Ferdinand’s brother Rio, who has half,” said Villas-Boas after Webb Speaking on Italian television, ruled out replacing Terry as captain, failed to spot Gary Cahill’s trip on Capello added it was “going to be civil was verbally targeted by a minority of Welbeck in the opening period, which justice, not sports justice, to decide if fans during yesterday’s draw between could have resulted in a red card for John Terry committed that crime”. Manchester United and Chelsea. the England defender on his debut. Capello’s open disapproval of the The United defender was relentless- “But the second penalty is a wrong FA’s stance puts him squarely at odds ly booed while songs insulting his decision. It is very, very dubious. with the governing body’s chairman brother were aimed at him at “We expect top referees in top David Bernstein, who led the move to Stamford Bridge. Chelsea manager games and at the moment it hasn’t take the armband away from Terry Andre Villas-Boas played down the been happening for us. There were while the allegations hover over him. jeers, saying: “It’s a normal situation some strange decisions today.” The FA acted on Friday following in the Premier League to boo a rival.” Torres and his Chelsea team-mates let a three-goal lead slip Picture: GETTY FULL MATCH REPORT: PAGE 35 Hartley pride as Lancaster Climb mountain or face a era starts on winning note whitewash, warns Swann ▲ CRICKET wicket partnership of 216 between Younus Khan (127) and Azhar Ali (157)

▲ BY JAMES GOLDMAN RUGBY UNION not pretty but the result was just the in Rome. Harlequins’ Karl Dickson which suggested conditions are not as start that interim head coach replaces his brother Lee, who broke a ENGLAND must “climb a mountain” hostile as the other scores in this BY FRANK DALLERES Lancaster had hoped for, and bore out hand bone in the Calcutta Cup win. if they are to avoid a humiliating match would indicate. ENGLAND hooker Dylan Hartley has his pre-match emphasis on forging whitewash in the third Test against But England’s neurosis against hailed the discipline and character of unity among a new-look squad. Pakistan today, according to spinner spin, which has been largely responsi- an inexperienced side after they over- Hartley said: “People talk about SIX NATIONS Graeme Swann. ble for them posting five consecutive came pressure and a hostile environ- experience. Experienced teams don’t TEAM P W D L F A PTS Set 324 to win – a target which sub-200 scores, means they cannot ment to get the Six Nations – and the give away penalties; we had a lack of France 1 1 0 0 30 12 2 would have been substantially larger approach the task of reaching their Stuart Lancaster era – off to a winning experience and our discipline was had Monty Panesar not returned fig- highest total of the series with any start. superb. Defence is an attitude and it England 1 1 0 0 13 6 2 ures of 5-124 as the hosts lost their justifiable confidence. Captain Chris Robshaw, winning sure as hell came through. It shows Wales 1 1 0 0 23 21 2 last seven wickets for 34 runs – “On current form, it’s an absolute only his second cap, and debutants great character in the side.” England reached 36-0 at the close to mountain to climb,” said Swann. “But Owen Farrell, Brad Barritt and Phil England regroup today with two Ireland 1 0 0 1 21 23 0 offer them hope of ending a forget- I think we’re due a decent score in Dowson earned plaudits as England changes to the squad, including the Scotland 1 0 0 1 6 13 0 table series on a high. this series. I’m forever the optimist fought back to defeat Scotland 13-6 at return of fit-again fly-half Toby Flood, Further encouragement could be and I’d like to think a couple of the Murrayfield on Saturday night. It was ahead of Saturday’s trip to face Italy Italy 1 0 0 1 12 30 0 sought from the mammoth third- CONTINUED ON PAGE 35 OVER 60 FOREX PAIRS

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