BUSINESS WITH PERSONALITY THE GIVING BUSINESS LONDON2012 MARC SIDWELL: WHY PHILANTHROPISTS NEED SKILL See The Forum, Page 20 SIMON WALKER: LET’S EXPAND HEATHROW See Debate, Page 21 14 …days to go ISSUE 1,673 FRIDAY 13 JULY 2012 www.cityam.com FREE Osborne fails to defuse tax timebomb BY TIM WALLACE GOVERNMENT finances are still stuck on an unsustainable path despite chancellor George Osborne’s RISING SUN efforts to cut the budget deficit, the Japan’s Mad Men buy Aegis in £3.2bn deal to shake up ad industry Office for Budget Responsibility (OBR) warned yesterday. BY LAUREN DAVIDSON GLOBAL AD GIANTS The aging population means rising AND JAMES TITCOMB healthcare costs could cripple the JAPANESE advertising agency Dentsu BY 2011 REVENUE state over the next 50 years unless has, after a string of attempts, finally the next government is prepared to cracked the global market with a WPP implement an extra £17bn of spend- £3.16bn bid for Aegis. ing cuts or tax rises in 2017, the inde- Shares in Britain’s second biggest ad £10bn pendent analysts said. agency jumped 45 per cent to 234p And if governments delay this extra after Dentsu unveiled its 240p per OMNICOM squeeze further, finances will deteri- share offer, a 48 per cent premium to orate and debt interest payments rise Wednesday’s closing price. £9bn until a future government is forced The deal – the second biggest the ad to deal with the problem – meaning industry has ever seen – comes just PUBLICIS the shock will be sharper the longer days after Publicis acquired top British the government waits. agency Bartle Bogle Hegarty. £4.6bn The current deficit reduction plan It also falls in the wake of ad giant should mean the government will WPP’s £348m deal for AKQA – a com- IPG run a primary budget surplus for pany that Dentsu tried to buy two much of the 2020s – that is, before years ago for $600m (£389m). £4.5bn debt interest payments are taken The Tokyo-based firm was similarly into account – but will plunge back unsuccessful in its 2009 attempt to DENTSU into deficit in the 2030s. acquire Microsoft’s digital agency net- Without further changes, the work Razorfish for $700m, losing out & AEGIS national debt will rise to almost 90 to a rival offer from Publicis. £3.8bn per cent of GDP by 2060-61, accord- But Dentsu’s multi-billion bid for ing to the OBR’s central forecast. Aegis, which comes with irrevocable Tadashi Ishii of Dentsu (left) and Aegis’ chief executive Jerry Buhlmann Much of the problem comes undertakings representing 30.5 per because 26 per cent of the popula- cent of its shares and unanimous biggest in Europe. he said was healthy for the business. deal with a loan from the Bank of tion will be over 65 years old in 2061, board backing, will catapult the firm However, senior ad industry sources Analysts have not noted client con- Tokyo-Mitsubishi UFJ and its own cash compared with just 17 per cent now, into the advertising magic circle. pointed out that the two groups flicts as a problem and think that a pile, which was boosted recently when adding substantially to medical and The joint income of Dentsu and could face client conflicts, citing rival bidder is unlikely. Publicis bought back €644m (£508.5m) care bills. However, the report did Aegis – £3.8bn based on 2011 rev- Dentsu’s work for Toyota and the Alex DeGroote at Panmure Gordon worth of its shares from the Japanese note that coalition reforms have enues – nears that of US giant IPG, the $3bn a year General Motors account said the support of Vincent Bolloré – firm, ending a nine year long relation- reduced the burden of state sector ad world’s fourth biggest agency Aegis won from Publicis in January. Aegis’ biggest shareholder – makes a ship. The deal, expected to complete in pensions – by changing the uprating behind Publicis, Omnicom and WPP. An Aegis spokesperson dismissed counter bid improbable, also noting the fourth quarter of this year, will of pensions to use the consumer Dentsu will become Asia’s biggest these concerns, saying it is “not a signif- that most other would-be buyers have require approval from 75 per cent of price index measure of inflation, not marketing agency when it absorbs icant issue”, adding that the group also been active on other deals lately and Aegis’ shareholders when it is put to the higher retail price index, the gov- Aegis’ clients – 20 per cent of which has internal competing clients – it might not have the spare cash. the vote on 16 August. ernment has saved roughly £126bn. are based in Asia – and the second works with BMW as well as GM – which Dentsu said it would finance the MORE: Page 3 ALLISTER HEATH: Page 2

Certified Distribution FTSE 100 5,608.25 -56.23 DOW 12,573.27 -31.26 NASDAQ 2,866.19 -21.79 £/$ 1.54 -0.01 £/€ 1.26 unc €/$ 1.22 unc 30/04/12 till 27/05/12 is 132,076 FRIDAY 13 JULY 2012 2 NEWS To contact the newsdesk email [email protected] Demographic timebomb will force government to downsize N the long run, we are all dead, as 2020s, before rising to 89 per cent of nies is down from 3.3 per cent of GDP orating. The net rate of return on cap- John Maynard Keynes used to say. GDP. That is the kind of level which in 2008 to a catastrophically low 1 per ital for non-oil non-financial compa- But plenty of us will still hopefully EDITOR’S leads to a permanent reduction in cent of GDP in the first quarter. nies has dropped to 11 per cent, the Ibe around by 2061, by which time growth. There is simply no way that Increasing that number would be the lowest level for two years. the Office for Budget Responsibility the state will continue to afford to best way to kick-start growth. It is not just that returns have informs us the public finances will LETTER provide as many services as it does There are lots of reasons for this cor- slumped: the cost of capital has gone once again be in crisis. The UK faces a today. Of course, one could increase porate reluctance, including up substantially, in a devastating pin- demographic timebomb which will, in immigration – but that is unlikely to Eurozone fears. But there is an even cer movement. One metric that shows my view, test our current welfare state ALLISTER HEATH be politically palatable. more fundamental reason why firms this is the earnings yield on UK equi- model beyond destruction. So whether we like it or not, individ- are not investing more: they are not ties, which has shot up from 6.5 per The proportion of the population and health spending is expected to uals will have to save more for their making enough money from their cent in early 2011 to 9.9 per cent in aged 65 and above is expected to rise rise from 6.8 per cent of GDP in 2016- own retirement and in most cases existing capital, while the opportuni- the second quarter. from 17 per cent in 2012 to 26 per cent 17 to 9.1 per cent of GDP in 2061-62 on also contribute more to their own ty cost of investing has gone up. Profits have become a dirty word in in 2061, assuming net inward migra- the central estimate, which feels like healthcare costs. The sooner we Manufacturing has become hugely today’s Britain. But companies won’t tion flows of half the recent level. The far too little given the huge expecta- accept that the current model is bro- unprofitable, an analysis of the offi- open their wallets and spend and hire result, according to the OBR, is that tions from voters. Even more signifi- ken the better. cial figures by Citigroup reveals. The unless they think it is worth their on current policies public spending cantly, higher spending is bound to net rate of return on capital for man- while – and that is something that other than on debt interest will rise reduce sustainable GDP growth. WE NEED MORE PROFITS ufacturing remained at an appalling- those who want to tax and regulate from 35.6 per cent of GDP in 2016-17 But even if we assume that the OBR COMPANIES are not spending much ly low 4.9 per cent in the first quarter, everything that moves would do well to 40.8 per cent of GDP by 2061-62. is not too optimistic, the impact will on factories and computers. That is the same as for the prior two quarters to bear in mind. Even that may be too optimistic: the be disastrous: net debt will fall from one central reason for our non-recov- and the lowest since 1991. Services OBR is almost certainly underestimat- 74 per cent of GDP in 2016-17 to a ery. Net of depreciation, business (excluding finance) are doing better [email protected] ing non-interest spending by 2016; trough of 57 per cent in the mid- investment by non-financial compa- but even there the situation is deteri- Follow me on Twitter: @allisterheath G4S denies its IN BRIEF Wells Fargo pays $175m fine Olympics guard Firms slam government’s n Wells Fargo yesterday agreed to pay $125m (£81m) to resolve allegations it discriminated against certain borrowers on the basis of race is a shambles and national origin in its mortgage lending, the US government said BY JAMES WATERSON slow progress on aviation yesterday. Wells Fargo also agreed to contribute $50m to help those buyers SECURITY firm G4S was battling to BY MARION DAKERS making down payments or improving restore its reputation yesterday their homes in some metropolitan after an MP said the firm had “let BUSINESSES yesterday lashed out areas around the country. The the country down” following at the coalition’s attempts to kick settlement, which needs approval concerns that it will not be able to the future of Britain’s aviation supply the 10,400 security guards policy into the long grass. from a judge, would end the it promised as part of a £284m Transport secretary Justine investigation into whether the fourth- deal to protect Olympic venues. Greening yesterday formally largest US bank between 2004 and The company could face unveiled a watered-down consul- 2009 knowingly targeted minorities substantial penalties after the tation with focus on noise reduc- for risky mortgages that came with government was forced to call up tion and green issues instead of higher costs, according to documents an additional 3,500 military options for adding capacity to UK filed in the US District Court for the personnel for the event, some of airspace as expected. District of Columbia. whom were supposed to be on Some suggestions in the consul- leave following tours of duty in tation were welcomed, such as Diamond picks top lawyer Afghanistan. asking rail firms to integrate tick- n Defence secretary Philip eting with airlines. Barclays’ embattled former chief Hammond yesterday told A new train service connecting executive Bob Diamond is being parliament’s defence select towns on the proposed High represented by top white-collar committee that his department Speed 2 route directly to defence lawyer Andrew Levander over “will be reimbursed the full Heathrow is also being consid- Justine Greening unveiled the watered-down consultation yesterday his role in the Libor-fiing scandal. marginal cost of the additional ered, though the government Levander, a partner at the firm military contribution”, although it admitted it does not plan to con- Ministers have shied away from statement: “It makes no sense for Dechert, is one of the biggest names is unclear how much money can sult on this option until 2013 at making a decision on expanding the political parties to work sepa- in the defence bar in the United be clawed back from the firm. the earliest. Heathrow or pressing ahead with a rately on this and come up with dif- States. He is currently also “We have encountered some But many business groups, new hub in the Thames Estuary, ferent solutions.” representing former New Jersey delays in progressing applicants including the Institute of both of which are ruled out by the The British Chambers of governor Jon Corzine in investigations through the final stages but we Directors, warned the govern- May 2010 coalition agreement. Commerce added: “Unfortunately, into the collapse of the failed are working extremely hard to ment against ignoring “the ele- A call for evidence on the matter, aviation strategy has become a polit- commodities brokerage MF Global. He process these as swiftly as phant in the room” of increasing which had been pencilled in for this ical plaything. has also represented directors of possible,” G4S said in a statement. capacity in the south east of month, will now take place “later in “That simple fact will not escape Lehman Brothers and hedge-fund The PR disaster could bring England. the year”, the department for trans- the attention of British business. manager and philanthropist Ezra long-term damage for G4S, which “These are fundamentally short port said in yesterday’s consultation The government has been consult- Merkin, who was sued over money lost is currently eyeing government term measures, which still don’t papers. ing on this issue for years, and there in the Ponzi scheme run by Bernard contracts, including some to run address the overriding need for The Labour party, keen to play up has been too much talk and too lit- Madoff. ▲ parts of Britain’s police forces. more runways,” said the IoD’s sen- the divisions among the coalition tle action.” ▲ ▲ ▲ ▲ BOTTOM LINE: Page 13 ior economic adviser Corin Taylor. members on this issue, said in a ▲ THE DEBATE: Page 21 BARCLAYS: Page 9 WHAT THE OTHER PAPERS SAY THIS MORNING agree on a solution to the country’s debt problems as concern rises that gridlock in Co-op nears cut-price Lloyds deal Washington is damaging the economy. A Big Mac and fries and my Emerging market oil demand to GM Europe president steps aside David Cote, Honeywell chief executive, The Co-operative Group is close to warns that the lack of political will to prescription, please surpass OECD, IEA forecasts General Motors ousted the head of its agreeing final terms with Lloyds Banking tackle the issue is creating uncertainty for Will pharmacists be offering to supersize Demand for oil from emerging markets struggling Opel/Vauxhaull division Karl- Group to buy 630 of its branches in a deal companies facing investment and hiring their customers’ orders? Analyst are will overtake that of the developed world Friedrich Stracke amid growing expected to be struck at a steep discount decisions, and could lead to years of low asking this question after reports that the for the first time next year, the frustration with the pace of the to the previously mooted £1.5bn price tag. growth or even another financial crisis. former boss of the world’s largest fast- International Energy Agency has forecast. turnaround of the European business, But Lloyds, 40 per cent owned by the people close to GM said. Activist stake in P&G approved food chain Macdonalds, James Skinner, is government, would be in line for likely to become the next head of Boots. Euro tumbles as Asian funds shun EU additional payments from the mutual if Bill Ackman, the activist investor, has France’s Sanofi Mulls Job Cuts the business performed well, sources say. received clearance to take a stake in Beeb chooses a buyer for TV Centre chaos Sanofi is considering cutting several Honeywell warns on debt gridlock Procter & Gamble in a sign that he could The BBC is to sell its sprawling Television The euro has plunged to multi-year lows thousand jobs in France after the French become a new source of pressure on the against a range of currencies on fears of a pharmaceutical giant lost patent A prominent US chief executive has urged Centre complex in West London to the company, which has lost the faith of some developer Stanhope for £200m. deepening slump in Italy and Spain, and protection in the US on some of its business leaders to press politicians to investors. ugly disputes between Eurozone leaders. blockbuster drugs earlier this year. CITYAMCAREERS.com The new jobs website for London professionals FRIDAY 13 JULY 2012 cityam.com NEWS 3 Banks face bill Bollore profits of up to $22bn in Libor scandal handsomely in BY KATIE HOPE BANKS linked to the Libor scandal face up to $22bn (£14.3bn) in regulatory fines, legal bills and civil damages, according to the most Aegis takeover detailed estimate so far. The total cost to banks, calculated BY LAUREN DAVIDSON openly that he intended to bring the by Morgan Stanley in what it admits British firm closer to French agency is a “crude” estimate, takes into DESPITE his failed attempts to Havas, where he is chairman and the account the impact the rate-rigging merge Aegis with ad agency Havas, largest shareholder. French businessman Vincent Bollore is reaping giant rewards from his Aegis stake scandal will have on market share French businessman Vincent Bolloré However, Bolloré has since called and deals for the banks. will no doubt be pleased with the his Aegis holding a strategic invest- Of the sixteen banks involved, it £3.2bn sale to Dentsu announced ment, fuelling speculation he would GREENHILL AND OTHERS warns that taxpayer-owned bank yesterday. be open to selling down his stake. ADVISERS RBS is likely to face one of the The Japanese company said it will The multi-billion deal will also be Yell Group on the troubled firm’s capital biggest fines, with a legal bill of up buy most of Bolloré’s 26.4 per cent good news for Harold Mitchell, who restructuring operation. to $1bn. Deutsche Bank faces a stake in Aegis, which the investor joined Aegis when it bought his mar- Greenhill advisers Pieter-Jan Bouten and similar hit, according to the has been building up since 2005. keting firm Mitchell Communication RICHARD HOYLE Hiroto Yamada worked under Hoyle on the estimates, which say the penalties WPP boss Sir Martin Sorrell called Group for £208m in 2010. MANAGING DIRECTOR, sale. will reduce 2012 earnings per share the deal “another trading coup for Australia-born Mitchell owns a 3.9 Tim Wise and David Harvey-Evers at JP by anywhere from two per cent to [Vincent] Bolloré,” who agreed to sell per cent stake in the British ad GREENHILL Morgan Cazenove also worked with the 33 per cent. 15 per cent of his Aegis holding to agency and stands to pocket £112.3m company on the deal. The analysts estimated that Dentsu for 420p per share, or a total if the Dentsu takeover is approved. Greenhill managing director Richard Hoyle Dentsu’s acquistion of Aegis was advised regulatory fines and litigation of £422m, regardless of whether the led the team advising Aegis on its £3.2bn settlements would reduce book BOTTOM LINE: Page 13 by banking giant Morgan Stanley in the takeover offer gets the green light. sale to Dentsu. international operation. value per share by a median of 0.5 He will also offload another five Aegis Group PLC 235.30 Hoyle has been a long-standing adviser to Hironobu Wakabayashi advised on the per cent in 2012. per cent at the same price, pocketing 240 p 12 Jul Aegis, having worked on the agency’s Japanese firm’s deal from Tokyo while Ian Morgan Stanley’s estimates were £140.7m – leaving the French tycoon £210m purchase of Australian ad firm given in a best-to-worst case 230 Hart led the team from London with with a 6.4 per cent stake which will Mitchell Communication and last year’s sale Laurence Hopkins and corporate broker scenario for each bank and based on earn him a further £180.8m if the 220 of market researcher Synovate to Ipsos. Andrew Foster. the Barclays agreement, as well as acquisition is approved. 210 The 36-year-old, who joined Greenhill from Hart, who was co-head of European merg- the individual banks’ exposures to Bolloré has said he will vote in 200 Credit Suisse in 2000 after a position at ers and acquisitions at Citigroup before Libor-pegged assets. favour of the deal at the shareholder 190 Barclays de Zoette Wedd, also advised moving to Morgan Stanley in 2009, has Other estimates of the final bill meeting on 16 August. 180 Robert Wiseman Dairies on a £279.5m sale also recently advised oil giant Royal Dutch have come in higher, with some The Paris-born businessman was 170 to German group Müller. Shell on the oil giant’s £1.12bn offer for analysts putting the total across the unsuccessful in his attempts to win Greenhill has recently advised debt-laden Cove Energy. industry at $200bn or more. a seat on the Aegis board, stating 6 Jul 9 Jul 10 Jul 11 Jul 12 Jul BARCLAYS: Page 9 FRIDAY 13 JULY 2012 4 NEWS cityam.com Yahoo confirms password leak BOEING SECURES $15BN UNITED ORDER

BY JAMES WATERSON struggling to revive stalled revenue were able to produce more than growth. 400,000 passwords written in MORE than 400,000 Yahoo At the firm’s annual meeting standard text within a day. That usernames and passwords were chairman Alfred Amoroso indicates that Yahoo either did not stolen and published online acknowledged that Yahoo had encrypt them at all or used an yesterday after hackers exploited a experienced a “tumultuous” year. encryption method that was easy to vulnerability in the firm’s computer But interim chief executive Ross crack, he said. systems – on the same day that the Levinsohn told those in attendance The most popular passwords in internet firm held its AGM. that he was optimistic about the the group were “123456”, Logins for Google, AOL and company’s progress. “password”, “welcome” and “ninja”, Microsoft services were also among The breach prompted criticism according to an analysis by anti- those compromised in the attack. from security experts who said that virus software maker ESET. The three companies said they a major internet firm like Yahoo Professional networking site required affected users to reset should do a better job at protecting LinkedIn was recently criticised for passwords for sites including Gmail, user data. similar failings. Security experts AOL, Hotmail, MSN and Live.com. “This points to some very lax attacked the company for failing to Yahoo issued a statement security practices,” said Rob use sophisticated encryption US PLANE maker United Continental yesterday unveiled what it described as a “historic apologising for the breach, the latest D’Ovidio, associate professor of practices to secure its passwords, setback for a company that has lost criminal justice at Drexel University. millions of which were released order” to buy 150 Boeing planes in a deal valued at $14.7bn (£9.7bn). United two chief executives in a year and is He pointed out that the hackers following a breach last month. Continental, the holding company that owns United Airlines, the world’s largest carrier, said it will begin taking delivery of the 737 MAX 9 planes in 2018. Ashmore share price down as equity shrinks This decrease included net out- BY HARRY BANKS flows of $600m and investment loss- es of $1.6bn. SHARES in funds house Ashmore Last year’s purchase of US-based tumbled 6.7 per cent yesterday after Emerging Markets Management has it said it has lost about a fifth of the not yet beefed up the equities divi- money it manages in equities during sion as hoped. The acquisition boost- the last quarter. ed the percentage of its assets held in The London-based manager, which equities to 20 per cent from one per focuses on investments in emerging cent, but that has since dropped to markets, reported a 20.5 per cent less than 10 per cent. drop in equities to $6.2bn (£4bn) in Ashmore also said clients exited its the three months to the end of June, multi-strategy products during the as the volatility rocking the world’s most recent quarter, predominantly equity markets ate into its holdings. from one of its Japanese retail funds. Ashmore also said in a trading statement yesterday performance BOTTOM LINE: Page 13 fees would likely fall to £25m, down Ashmore Group PLC from the £85.4m earned in the previ- 360 p 308.00 ous year, with almost all of the fees 12 Jul coming in the first half of the year. 350 Ashmore is among the first UK 340 fund managers to update the mar- ket on performance during the quar- 330 ter. 320 The firm said its assets under man- agement dropped a worse-than-fore- 310 cast 3.3 per cent to $63.7bn in the period. 6 Jul 9 Jul 10 Jul 11 Jul 12 Jul HOW WAS ASHMORE’S ANALYST VIEWS UPDATE? By Marion Dakers STUART DUNCAN PEEL HUNT Net outflows in the final quarter were $600m, disappointing but indica- tive of the market conditions that prevailed. We expect to reduce forecasts, but “we still consider that Ashmore offers long-term structural growth and therefore we retain our Buy recommendation. HALEY TAM CITI ” Assets under management [are] three per cent below our expectations. Performance fee guidance a shade lower for 2012 but significantly lower for 2013. “Consensus downgrades likely. Overall, despite recent falls we look for further share price weakness. Neutral. SARAH INGSINGER CAPITAL MARKETS ” We continue to believe that emerging market debt will continue to grow as an asset class and we are positive longer term. However, market conditions “remain challenging for most asset gatherers and we expect 2013 consen- sus to fall. Lacking any positive catalyst, we retain our cautious stance. ”

FRIDAY 13 JULY 2012 6 NEWS cityam.com HAGUE REVEALS AUDIT OF BRUSSELS’ POWERS Eurozone banks flee from ECB’s FOREIGN secretary William Hague announced yesterday that the government will run new zero per cent deposit rate a “comprehensive audit” examining Bonnici described the figures as “In the current account, banks BY TIM WALLACE the impact of EU “encouraging,” arguing the rate cut always received a zero per cent re- laws on the UK. The BANKS responded immediately to “provides an incentive for the numeration on excess liquidity – audit is set for the European Central Bank’s (ECB) banking system to look what only the required minimum reserve completion in 2014, decision to slash its deposit rate to alternatives there are to improve holdings are re-numerated with the yet Labour argued zero, with hundreds of billions of their earnings.” rate on the main refinancing rate in parliament that a euros now kept in current accounts, But economists were sceptical, (currently at 0.75 per cent).” quicker examination not the deposit facility on pointing to the shift of cash from the Meanwhile data out yesterday was needed, given Wednesday night – the first day of deposit facility to the zero-paying from Debtwire Analytics showed the lower rate. current accounts. investors still shying away from high- the evolving ECB data showed €325bn (£257bn) “Indeed, for banks it is now easier yield corporate bonds, favouring relationship among was held in the facility, down from to just leave excess liquidity in the safer products. The research showed EU states within and the €800bn left there on the current account rather than companies issued €25.6bn of high outside of the previous day and the €700bn at the arranging a transfer of the funds in yield bonds in the first half of 2012, Eurozone. Hague same point last month. the deposit facility,” said Citi’s down sharply from the €37.7bn in denied the audit Governing council member Josef Jurgen Michels. the same period of 2011. could prompt the UK to leave the EU. Peugeot’s woes show dire state of EU industry BY TIM WALLACE to May, with French output down 3.8 per cent, Italy’s down 6.9 per cent and EUROPE’S battered manufacturers Spain’s down 6.1 per cent. could be about to embark on a major Meanwhile an Italian government series of restructurings and layoffs, debt auction provided some slight analysts warned as Peugeot Citroen respite from the crisis. announced plans to close one factory In a sale of one-year notes, the state and scale down operations at another. raised €7.5bn at an interest rate of The French government has pledged 2.697 per cent – down sharply from to keep the plants open and stop the 3.97 per cent just a month ago, show- plan which would see 8,000 jobs cut. ing tensions have receded slightly. But the company warned it will post However, markets are still uncon- a net loss in the first half of 2012, and vinced the Italian government is safe – a €700m (£554m) operating loss in the its 10-year borrowing costs still stand core car-making division. at a worryingly high 5.91 per cent. Analysts warned the move could open up the floodgates on a wave of restructurings, with others including Eurozone industry is struggling Renault, Fiat and Opel all considering 110 2005 = 100 or engaged in changes. The government has appointed an 105 expert to examine Peugeot’s finances, which will report back in a fortnight, 100 with social affairs minister Marisol Touraine saying “we cannot accept 95 something like this.” 90 It came as official data showed that industrial production in the 85 Eurozone fell 2.8 per cent in the year May 2004 May 2006 May 2008 May 2010 May 2012 Troika give thumbs up to Ireland but IMF finds holes in Greek plan

BY JULIAN HARRIS implementation remains strong”. “The recent notable decline in THE SO-CALLED Troika of bond yields underlines the international bailout providers increasing confidence in Ireland’s yesterday gave Ireland a relatively strong capacity to implement clean bill of health after adjustment policies,” it said. conducting a nine day long review Meanwhile, the IMF said mission in the Eurozone state. yesterday that it had found policy Despite “challenging delays in a number of areas of the macroeconomic conditions”, Greek bailout programme. Ireland’s policies remain on track The rescue fund was following the bailout supplied by commenting after talks in Greece the Troika, which comprises the which could lead to more lenient International Monetary Fund conditions for the country’s (IMF), EU and European Central bailout package. “So far, some Bank (ECB). targets were met, a number were While growth is set to remain missed, and in some cases we “modest” and unemployment is don’t have data to assess and will “very high”, the Troika said: have to wait a little longer to get “Ireland’s programme the full picture,” the IMF said. The Ultimate Coffee Experience in the Heart of London

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FRIDAY 13 JULY 2012 cityam.com NEWS 9 HSBC VETERAN SANDY FLOCKHART RETIRES Aveva hit by shareholder spring as 35pc vote against pay deal BY KATIE HOPE of newspaper group Trinity Mirror, to drive continued growth. The their jobs. firm said that whilst the majority IN A sign that shareholder unease The vote came after Aveva, which of rental contracts renew in the over executive pay dubbed the provides engineering data and second half of the fiscal year, it “shareholder spring” is continuing, design information technology has seen no change in customer software maker Aveva yesterday saw systems, said earlier yesterday it was preference for the rental model over a third of its shareholders vote trading in line with expectations. during the period. against approval of the directors’ It said the oil & gas sector has The group continues to be cash remuneration report at its AGM. remained resilient, offsetting a generative and has a strong While the remuneration report slowing of demand elsewhere. balance sheet. was easily passed with 65.52 per The power business was also Latin America and North cent in favour, versus 34.47 per cent strong but the maritime division is America continue to perform in against, it is yet another example of suffering, the company said. line with its expectations, it said. the backlash over pay that has cost The engineering & design systems In Asia Pacific, the China business some executives such as Aviva boss division demand from the is fully operational and the other Andrew Moss, and Sly Bailey, head engineering contractors is helping areas continue to perform well.”

HSBC veteran Sandy Flockhart is retiring due to ill health having served almost 40 years at the bank. HSBC said Flockhart will step down as a non-executive group director, and from his position as chairman of HSBC Bank – the bank’s UK operations – at the end of July. Flockhart is fighting cancer. Barclays loses bond issue as Libor hits deals

BY JAMES WATERSON yesterday taking 36 different bets for BARCLAYS yesterday lost its first Rich Ricci, currently head of the firm’s major business since the Libor-fixing investment banking operation. scandal began, as a Japanese bank “Punters were willing to back Rich pulled out of a bond issue worth Ricci at any price so it’s a safe assump- around $1bn. tion that the cat is out of the bag,” said The state-backed Japan Bank for a spokesman. International Cooperation had •The US Department of Justice was included Barclays among three banks yesterday urged by politicians to step advising on a five-year bond offering up its investigation of Libor yesterday, but left it out of the final offering. with a group of Democratic senators “Barclays was dropped because of weighing in for the first time. reasons related to reputational and counterparty risk issues,” said a Barclays PLC banker with knowledge of the deal. 172 p Leicestershire county council added to the firm’s woes by announcing 170 163.50 plans to withdraw the £6m it holds on 168 12 Jul deposit with the bank. Although a rel- atively small sum it is highly symbolic 166 because the council directly linked 164 the decision to the Libor-rigging. Meanwhile bookmaker Paddy Power 162 stopped taking bets on the identity of Barclays’ next chief executive after 6 Jul 9 Jul 10 Jul 11 Jul 12 Jul Pensions firms hit back after Labour says charges are rip off BY JULIAN HARRIS that it could deter people from AND TIM WALLACE saving for their retirements. “Pension charges have been THE PENSIONS industry was put falling steadily for the last decade on the defensive last night after a and are continuing to fall,” it said, stinging attack from Labour leader citing an average rate of just 0.52 Ed Miliband in which he claimed per cent for new schemes. that it could be the focus of the Meanwhile, the government has “next big scandal” to knock the delayed the publication of its financial sector. plans to raise the state pension age Miliband claimed that he is and replace the current system aware that some people are facing with a single tier pension. four or five per cent Instead of releasing the details administrational charges on their yesterday as planned, a white pensions, costing them tens of paper will be published in the thousands of pounds over time. Autumn with the aim of bringing But the Association of British the changes into force in the next Insurers lashed out at the Labour parliament. leader’s “scaremongering”, adding PENSIONS NEGLECTED: Page 17 double savings in the DFS summer sale

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Deputy 3 seater sofa. Accent cushions not included unless otherwise stated. Credit subject to acceptance. Credit is provided by external fi nance companies as determined by DFS. 4 years interest free credit from date of order. Delivery charges apply. Sale price applies from 30.07.12 to 09.09.12. After sale price applies from 10.09.12 - see instore or online for details. Mobile charges may apply when calling 0800 110 5000. DFS is a division of DFS Trading Ltd. Registered in England and Wales No 01735950. Redhouse Interchange, Doncaster, DN6 7NA. FRIDAY 13 JULY 2012 cityam.com 11 Got A Story? Email [email protected] THECAPITALISTcityam.com/the-capitalist Bolt’s here but there’s nothing THE GREAT (BUT WET) CITY RACE THOUSANDS of runners were out in fast about UK’s aviation policy force in the City yesterday despite UNSUSPECTING travellers at our new figure of Usain Bolt the rain, Heathrow’s Terminal 5 found a and wanted to treat some of participating in sporting super hero in their the thousands of people Standard midst yesterday morning when coming in to London in the Chartered’s Great Jamaican running sensation, coming days with a surprise Usain Bolt, greeted international welcome from one of the City Race 2012. arrivals with his trade mark “To Di biggest names taking part in With just two Mark” lightening bolt pose. the competition,” explained weeks to go before The Bolt in question was the Madame Tussauds general the Olympics, the athlete’s new Madame manager, Meike Schulze. Square Mile Tussauds wax figure paying Sadly there’s nothing enjoyed its own a visit as the airport superfast about the demonstration of welcomes record numbers government’s plans to sporting prowess of passengers arriving for expand airport as office workers the Olympics. capacity in the UK. took to the steets The superfast athlete will Yesterday the to run 5k in take up residence in the government for the support of world famous attraction second time delayed Standard in a couple of weeks, but a strategy Chartered’s hundreds of fans were document looking designated charity given an advance at possible ways to Seeing is Believing. preview at Terminal 5 expand airport Several of the yesterday. capacity until the emerging market “We are very proud of autumn at the earliest, prompting bank’s senior A waxwork of Usain Bolt criticism from management greeted Heathrow visitors business. joined in the race. Scream buyer revealed

Edvard Munch’s Scream painting was exhibited in London earlier this year before the auction in New York HE identity of the bidder who been a well kept secret since the His fortune, which Forbes said set a record for the highest auction in May because Sotheby’s topped $3.4bn as of March, got a price for any work of art at an was keeping it secret. Yesterday the boost when Apollo went public in Tauction when he bought auction house declined to confirm March 2011. Apollo said it manages Edvard Munch’s The Scream in that Black was indeed the buyer. $105bn in assets. May can be revealed. According to Black became a buyout executive A few years ago the firm became the Wall Street Journal the New for Drexel Burnham Lambert and a talking point in the UK after it York financier Leon Black is the rose to become the billionaire was reported that it had takeon on bidder who offered nearly £74,000 chairman and chief executive of Adam Applegarth, the former for the work of art. New York firm Apollo chief executive of Northern Rock at The identity of the buyer had Global Management. the time of its collapse, as an adviser to its European dis- tressed debt fund. The Munch painting was exhibited in London ahead of its auction in New York, where art investors enjoyed seeing it in all its glory. David Norman of Sotheby’s said of the sale: “The sale of the Scream is the most excit- ing moment I have experi- enced here in my three decades.”

New York billionaire Leon Black owns the Scream.

FRIDAY 13 JULY 2012 cityam.com NEWS 13 Suntory time in the world’s second-biggest ad market DDICTS of HBO’s Mad Men firms’ own presentation admits that EMERGING ISSUES dramatic explanations. and fans of Lost in Translation 2012 growth in ad spend will be just On the other hand, was Ashmore’s Exhibit A, most of Ashmore’s may not find Tokyo an obvious BOTTOM 1.5 per cent in Western Europe, while sinking share price yesterday a sign losses weren’t from outflows but A home for an advertising group it will be 8.7 per cent in Asia Pacific, that betting on Asia-Pacific is a bad from underperforming investments. with global ambitions. But that’s not which is also, largely thanks to Japan idea after all? The emerging markets That still doesn’t sound promising, what the numbers say. Japan is the LINE and China, a considerably bigger investment specialist fell almost but bear in mind that the problems second largest advertising market in the first place. seven per cent after producing a were largely in equities and multi- marketplace in the world. The heirs So why is Dentsu paying Aegis so trading statement that showed its strategy, rather than Ashmore’s of Madison Avenue still keep the MARC SIDWELL much to bring it along to the party assets under management had traditional strong suit of EM debt. United States a long way out in front, in the emerging east? Partly because, dropped 3.3 per cent in the quarter, Exhibit B, Ashmore’s fees are accounting for 33.9 per cent of the emerging economies of Brazil, whatever the regional growth story, to $63.7bn (£41.35bn). Outflows from expected to be £25m in 2011/12, global advertising spend as against Russia, India and China. America Europe and North America remain a Japanese retail fund product were almost all earned in the first half of Japan’s 10.3 per cent in 2010. But for should still account for a very critical markets. The new group will even implicated among the losses. the year. That’s less than a third of comparison, the UK only trails in creditable 19 per cent of global ad retain Dentsu’s eastern focus, with If the dedication of Ashmore to the 2010/11 figure of £85.4m, quite fifth, at four per cent. growth, but that leaves it very much 70 per cent of projected revenues emerging markets were behind these enough to alarm investors without When it comes to future in second place. from Asia-Pacific, but with a healthy disappointing numbers, that would offering a big picture explanation for advertising growth, the future is also Given that reality, Dentsu’s balance of 15 per cent from Western be a far bigger story, one with everyone else to worry about. For away from more famous centres of £3.16bn offer for London-based Aegis Europe and 12 per cent from implications not just for Aegis and that, you’ll just have to turn to excellence. Aegis estimates that half seems even more generous. While America. There it will have an Dentsu, but for global growth and today’s GDP figures from China. of all advertising growth from 2011- Aegis will give Dentsu a leading emerging story of their own, as the countless investment strategies. Marc Sidwell is City A.M.’s managing 2015 will come from the big position in Western Europe, the two fastest-growing network in the US. Happily, there are other, less editor

IN BRIEF 888 bets on Spanish dominance Big companies n Shares in online gaming company 888 Holdings jumped 15 per cent yesterday after the firm said it expects earnings for the first half of the year to “significantly exceed” expectations. It has become Spain’s second-biggest shy away from poker site after securing an e-gaming licence and following a government crackdown on illegal online bookies. 888 warned that it expects lower earnings in the second half of the year London floats due to increased marketing costs. Infosys falls on sales downgrade BY MARION DAKERS eign firms withdraw from planned n Shares in software group Infosys listings, including Russian group plummeted yesterday after the LONDON’S Alternative Investment Megafon and state-owned Georgian Bangalore-based company downgrad- Market (Aim) was the venue for the Railway. Lord Neuberger of Abbotsbury will give up his current position as master of the rolls ed its revenue forecasts to five per cent vast majority of UK initial public The junior market seemed to bely annual growth from a previous esti- offerings in the last three months the gloomy figures, attracting a mate of up to 10 per cent. while the main market remained in range of small-cap firms, including The outsourcer has struggled to keep the doldrums, according to figures UK software group WANdisco and Lord Neuberger of Abbotsbury up with its competitor Tata Consultancy from Ernst & Young out yesterday. Chinese online retailer Global Services for growth, and despite Aim hosted 11 listings in the sec- Market Group. reporting a 33 per cent rise in year-on- ond quarter, compared to just one But by the end of the quarter, only to lead Britain’s Supreme Court year profits for the three months to IPO on the London Stock Exchange – six out of 11 firms to join Aim closed July, Infosys shares fell eight per cent. that of Abu Dhabi-based NMC above their float price, partly a vic- members of the court, I will do Health. tim of global turbulence in equities. BY JAMES WATERSON my best to ensure that it Both exchanges saw new entrants continues to play its proper role Digital growth propels Centaur cut in half compared to 2011, LORD Neuberger of Abbotsbury in upholding the rule of law, and n Centaur Media has increased its Aiming high: IPO market propped up by small caps reflecting a global slump in the will become Britain’s top judge in applying and developing the law earnings estimates thanks to improved 8,000 25 equity capital markets as turmoil in No. of IPOs October when he becomes in a coherent and principled and digital revenues. The business publish- 7,000 Money raised president of the Supreme Court, practical way, appropriate for the Eurozone puts the brakes on 20 ing group expects an 18 per cent profit corporate fund-raising goals. 6,000 it was announced yesterday. today’s world,” he said. margin on a two per cent increase in The amount raised through IPOs 5,000 15 As a result the 64-year-old will Neuberger has direct picked up slightly during the three give up his current position as experience of the City. After sales. Centaur has also announced the

4,000 10 acquisition of digital marketing group months to the end of June to hit IPOs of No. master of the rolls, the second attending Westminster School Funds raised £m raised Funds 3,000 £213.19m, though the market trails 5 most senior judicial position in and Christ Church, Oxford he Econsultancy.com for an initial £12m. 2,000 The group’s digital operations now far behind the same quarter in 2011, 0 England and Wales, where he is spent three years working at which saw £7.74bn raised, including 1,000 responsible for the civil division Rothschild investment bank account for 30 per cent of its total 0 Glencore’s mammoth £6bn float. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 of the court of appeal. before being called to the bar in turnover, up from 26 per cent last year. 2010 2011 2012 The main market saw several for- SOURCE: LSE “Together with the other 1974.

HAVE THE” O2 NETWORK PROBLEMS AFFECTED THE FIRMS’ REPUTATION?

Murdoch’s girl O2’s network blackout is an CITYVIEWS Interviews by Jamie Sutherland RUPERT BUSHMAN I’m not an O2 user, but I would say this hasn’t in Shine retreat embarrassment admits boss AVIVA affected how I see the company. This is just one of those annoying” things a bit like the NatWest fiasco – it’s a BY KATIE HOPE

BY JAMES TITCOMB mobile access, allowing phone and human glitch, and it’s bound to happen sometimes. It does text reception, yesterday morning, demonstrate the weakness of these systems - we can’t rely ELISABETH Murdoch, daughter of O2 has been forced to apologise after and 3G data networks were fully on this technology yet they want us to use it for everything. media mogul Rupert Murdoch, is network problems caused millions of restored in the afternoon. to step down from the day-to-day its customers to lose mobile phone “The first thing I would like to do RUSSELL I’m not on O2, but my father is, and I couldn’t get running of Shine – the firm she coverage. is apologise to our customers,” MOULDER in contact with him at all yesterday. I’d definitely sold to her father’s News Chief executive Ronan Dunne told Sky News. When asked FRIENDS LIFE never switch” to O2 now. I think it will affect its business, Corporation in a £415m deal last Dunne said the if he was embarrassed by the fault, year. “embarrassing” failure had he replied: “Yes, yes I am.” especially now that we’re coming up to the Olympics – stay- Elisabeth, who will continue to affected more than 7m of The blackout is believed to have ing in contact is now even more important. If it happens hold the role of chairman, will the network’s 23m UK been caused by a faulty again, it’ll find customers leaving. hand over the chief executive role subscribers. upgrade as the network she has held since 2001 to chief The outage meant that prepared for increased ED GALVIN Half of the company wasn’t able to access their operating officer Alex Mahon. users were unable to mobile usage during this AOS STUDLEY emails or make calls. Because we’re all on the “As Shine further diversifies receive phone calls or summer’s Olympics. move, it’s been a bit of a nightmare. I’m the person who’s across genres, geographies and text messages, and were O2 said customers platforms, I believe that the also not able to connect would be compensated. had to deal with all this, so I’ve had a massive headache continued growth of the company to mobile data services over this whole issue. But we’re not considering moving requires the chairman and chief for 24 hours from away from O2 yet – I do think it is just a one-off. executive roles to be distinct and Wednesday afternoon. O2 CEO Ronan Dunne has separate,” said Murdoch. O2 restored 2G apologised for the outage These views are those of the individuals above and not necessarily those of their company BRING IN YOUR 4 WALKOUTWITH

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Apple,theApplelogoandiPadaretrademarksofAppleInc,registeredintheUSandothercountries.TMandc2010AppleInc.Allrightsreserved.Important:duetothefastmovingnatureofthismarket,alloffers,pricesandavailabilityare subjecttochange.All information is accurate at the time of going to print. 1 Pay monthly prices subject to credit and minimum termof24months.Availableat£24permonthonO2,£25permonthonOrange,£25permonthonThree,£26per monthonT-Mobile,£26permonthonVodafone.2iPhone4Supfrontpriceis£250,reducedtoFREEwhenyou tradeinan iPhone4(tradeinvalue£250).Yourhandset mustbeinfullworkingorder,poweredup, chargedandingoodvisualcondition. Terms and conditions apply. Ask in store for details. FRIDAY 13 JULY 2012 cityam.com NEWS 15 Centrica buys two US power Cove Energy sale drags into its eighth month as Shell extends suppliers in $110m cash deal BY MARION DAKERS back its bid. Analysts at Investec have its hunt for businesses to buy in the THE SALE of Cove Energy enters suggested that, with the sale BY CITY A.M. REPORTER the acquisition. US, in a bid to meet its target of its eighth month today, with process dragging on, the Takeover CENTRICA, which owns British Gas, Direct Energy president and chief doubling profits at its North pursuer Shell extending its offer Panel could call a sealed auction said yesterday that it had agreed to executive Chris Weston said American business between 2009 for a fourth time. for Cove next week. buy two New York-based power yesterday: “This acquisition supports and 2014. So far Shell has persuaded just Under the rules for competitive providers from Iberdrola USA for Direct Energy’s strategy to grow and An additional payment of $5m 3.27 per cent of investors to accept takeovers, final offers must be $110.2m (£71.18m) in cash to add scale to its US north east may be made to extend brand its £1.12m bid. announced a maximum of 46 days strengthen its position and increase downstream power and gas ownership beyond an initial four Mozambique-focused Cove, after competing bid documents its customer base in the north east position.” year period under yesterday’s deal, which opened its data room to are filed – giving a deadline of 17 of the country. Centrica has made a series of expected to close in the third quarter potential bidders on 13 December, July for Cove’s suitors, before the The British utility’s North acquisitions in the region, with of 2012. is also fielding advances from Thai panel steps in. American subsidiary, Direct Energy yesterday’s deal marking its third The transaction is subject to company PTT, which has secured PTT’s current offer is set to Services, will buy Energetix and since last year. It has already regulatory approval and is expected acceptances from 0.25 per cent of expire today, unless the state- NYSEG Solutions, which operate out acquired the New York-based energy to close in the third quarter of 2012. shareholders for its £1.22bn controlled firm extends its bid. of Rochester and Binghamton, New retailer Gateway Energy Services and Shares in Centrica, which have takeover package. Shares in Cove ended the day up York. the Indiana-based gas supply risen over seven per cent since the Shell yesterday pushed back its 0.9 per cent at 275.01p – above the Direct Energy would add 245,000 business Vectren Source. start of the year, closed 0.1 per cent acceptance deadline to 25 July in 220p per share on offer from Shell customers in New York state with Centrica is expected to continue higher at 319.1p. the hope that more investors will and the 240p bid tabled by PTT.

IN BRIEF Fenner in £100m refinancing n Conveyor belt maker Fenner said Premier in $1bn yesterday weak order numbers from the US coal market have been offset by strong demand in other regions. It also said it had secured a £100m refinancing package with banks. The Yorkshire- based company said that its Dutch and move to pump Australian businesses were forging ahead. Liberum Capital analyst Ben Bourne said: “Since March, the group has continued to make solid progress with revenue and earnings in line with oil in Falklands expectations.” BY JOHN DUNNE frosty relations in a long running dis- Oxford Instruments in sales lift pute over the sovereignty of the n Oxford Instruments, which makes PREMIER Oil yesterday said it had islands. But Premier dismissed con- agreed a $1bn (£647m) deal to cerns about investing in the political- Chief financial officer Guy Elliott is set to retire after more than 30 years with the miner. high-tech tools for industry, said yes- explore the Falkland Islands with ly sensitive project which has terday that it had made a strong start Rockhopper. prompted Argentina to threaten legal to the year with sales of products The FTSE-250 British company said action against oil firms active in the ahead of the previous year. The compa- Rockhopper, an explorer that made Falklands for what it sees as “illegal” Rio Tinto in shake-up as chief ny said that it had performed well in an oil discovery in the Falklands in drilling. the three months from 1 April. It said in 2010, was the ideal partner. “I don’t want to sound flippant, but a statement: “Our markets remain It will pay an initial $231m in cash the oil industry deals with this type financial officer set to retire strong despite continued economic for the deal as well as providing of political risk, of border disputes, of uncertainty, particularly in Europe.” around $770m to help build infra- disputed territories all around the BY CITY A.M. REPORTER company. The new position structure. world, frankly,” Premier’s finance overseeing group strategy and Actelion plans research cost cuts The pair say that oil is expected to director Tony Durrant said yesterday. ANGLO-AUSTRALIAN miner Rio business development will be n start pumping in the Falklands in Tinto said yesterday chief financial taken on by Doug Ritchie, Europe’s top biotech company Actelion mid-2017. officer Guy Elliott would retire at currently the head of the group’s said yesterday it would slash costs and cut The deal, which will give Premier a Premier Oil PLC the end of next year, and that the energy division. Ritchie starts the back on research to focus on its pul- 60 per cent stake in the Sea Lion oil 380 p 366.30 company would be creating a new London-based role in January next monary arterial hypertension business, in field, will add about 200m barrels of 12 Jul position to oversee the group’s year. Diamonds and Minerals head a bid to ensure growth when its key drug oil to its resources. 375 strategy. Harry Kenyon-Slaney will assume Tracleer goes off patent in 2015. Actelion The Sea Lion field is large in com- 370 Elliott, a 32-year veteran of the the Brisbane-based role of Rio said it would review its pipeline and stop parison to fields in the North Sea, company, was finance director Tinto Energy chief executive from or license out projects which did not fit its although small fry compared with 365 when Rio Tinto made its ill-fated 1 September 2012. He will be focus, but didn’t elaborate. The firm does the around 50bn barrels of oil 360 $38bn (£24.6bn) takeover of Alcan replaced by Alan Davies, who not see earnings growth until 2014, when thought to lie offshore Brazil. in 2007. He announced six months currently heads Rio Tinto Iron Ore new medicines and cost cuts are expected Tensions are running high in the 355 ago that he would not take his International Operations and who to offset falling Tracleer revenues. Falklands region with the UK and annual bonus because of that deal, will also join the executive Argentinian governments having 6 Jul 9 Jul 10 Jul 11 Jul 12 Jul which nearly crippled the committee. BTG Pactual and former Vale boss Wet weather hits insurers with to form new Latin America miner BY CITY A.M. REPORTER Ledsham, also a former Vale flood payouts set to top £200m executive, will become chief BTG PACTUAL, Brazil’s largest executive, according to a around £8-15m and Legal & remains affordable even after the independent investment bank, has statement released at a news BY JAMES WATERSON AND General paying out £5-12m for the current deal – which sees insurers teamed up with former Vale chief conference. JAMIE SUTHERLAND same period. promise affordable cover in return executive Roger Agnelli to set up a The association allows BTG Since then the wet weather has for government spending on flood new mining venture, the bank said Pactual to enter the mining sector INSURERS face a bill of “hundreds continued, causing flash floods in defences – expires next year. in a securities filing yesterday. directly after venturing over the of millions of pounds” following towns across the UK and raising Meanwhile AA Insurance said The partnership with Agnelli’s past three years into projects this summer’s floods, an analyst the prospect that payouts will yesterday that cars have suffered investment company, AGN mostly related to Brazil’s buoyant said yesterday. increase in the second half of the at least £35m worth of damage in Participacoes, will involve consumer goods sector. BTG Barrie Cornes of Panmure year. the last fortnight’s storms. Its investments worth up to $520m to Pactual’s merchant banking unit Gordon estimated that Aviva, On Wednesday environment staff have dealt with over 400 finance the development and will represent the interests of the which insures around 12 per cent minister Caroline Spelman claims in the past two weeks. It growth of the business through shop in B&A. of households in the UK, will be announced plans to include a levy can often be prohibitively acquisitions and proprietary “We believe in the enormous hit with a charge of £20-£40m for on all household insurance expensive to repair damage projects, BTG said in the filing. potential of natural resources flood damage during the first six premiums to subsidise cover for caused by hail or flood, with a Agnelli will serve as chairman of wealth that Latin America has,” months of 2012. those in high-risk areas. It is an large percentage of these vehicles the joint venture, known as B&A Agnelli was quoted as saying in a He sees RSA taking a hit of attempt to ensure that insurance being written-off. Mineracao, while Eduardo joint statement. FRIDAY 13 JULY 2012 16 NEWS cityam.com No profit warning for Carrefour Primark and a Jubilee bake-off as trading still weak in Eurozone BY CITY A.M. REPORTER hypermarket revenue. Second- helps AB Foods lift its revenues quarter sales were €21.72bn CARREFOUR, Europe’s biggest (£17.2bn), slightly above the average June. business – where year-to-date retailer, defied fears of another of analyst estimates of €21.65bn. BY KASMIRA JEFFORD The retailer’s UK stores enjoyed revenues rose three per cent – profit warning yesterday, sending Stripping out fuel and ASSOCIATED British Foods a “good” trading period with the faced fierce price competition its shares soaring as new currencies, revenue at its French yesterday said it was on track for a exception of April when cold and because of pressure on UK management said that while hypermarkets fell 5.7 per cent big rise in full-year adjusted wet weather led to weak household incomes, though the trading remained weak in against a 5.8 per cent fall in the earnings as cash-strapped sales, the company said. Silver Spoon sugar brand received a austerity-hit countries like Spain first quarter. Finance chief Pierre- shoppers braved wet weather In the sugar business, boost from home-baking for street and Italy, it was not getting worse. Jean Sivignon said the first half to snap up budget fashions at year-to-date revenues parties over the Diamond Jubilee The French group said it was usually contributes around 35 per its Primark clothing chain. rose 28 per cent. The holiday weekend. “comfortable” with the market cent to full-year profit. The FTSE 100 company, group said the recent Finance director John Bason said consensus for 2012 earnings before Quarterly like-for-like sales which also owns brands such as commercial he was a strong believer that the interest and taxes of €2.03-2.09bn, excluding petrol fell 7.4 per cent in Silver Spoon sugar and Twinings environment had been Olympics would have a positive which would mean a year-on-year Spain and 4.3 per cent in Italy. tea, said a 16 per cent growth in strong in Europe and to a affect on the UK economy: “People profit drop of five to eight per cent. However, the downward sales sales at Primark helped boost lesser extent Africa, but will be looking to Primark in the Carrefour said second-quarter trend slowed in Spain in the second group revenues by 11 per cent prices in China had capital. People will be eating food like-for-like sales dropped 1.3 per quarter from the first quarter, and for the 40 weeks to 23 continued to fall since the and we provide basic staples for cent, dragged down by falling in Italy, non-food hypermarket half-year. food. I think the Olympics will be demand in recession-hit Italy and sales were improving, Carrefour ABF’s George Weston ABF’s grocery good for us.” Spain and sluggish French said. IN BRIEF LONDON 2012 IMAGE OF THE WEEK Barratt to build 463 Fulham homes Supergroup in n Housebuilder Barratt Developments announced yesterday that its subsidiary Barratt London, in partnership with L&Q, the housing association, has bought a derelict 8.5 acre site in Fulham from Sainsbury’s. bullish mood as It currently houses a Sainsbury’s store and car park and a large, derelict wharf building. Barratt is set to transform the £420m site into 463 riverside flats and a new Sainsbury’s supermarket as well as restaurants it eyes growth and cafes and the use of a jetty converted into a wildlife park. and upped it overseas outlets to 101. BY KASMIRA JEFFORD Dunkerton said the group would be Qatari royals acquire Valentino SUPERGROUP chief executive Julian focusing on expanding floor space this n Italian fashion house Valentino has Dunkerton said yesterday he was look- year at existing and successful stores been snapped up by the Qatari royal ing forward to a “new dawn” for the and would be growing “in a controlled family for €700m (£552m), the latest company, insisting it had drawn a line and measured way”. purchase of a top European luxury under operational errors that sparked “We have grown 674 per cent in four brand by an emerging market three profit warnings last year. years. It’s a phenomenal growth and investor. The haute couture label loved Shares in the fashion retailer, down what we have done is let our investors by Jacqueline Kennedy Onassis and 62 per cent over the year, perked up 16 down on a couple of fronts this last Audrey Hepburn said yesterday that per cent yesterday after it met fore- year”, he admitted. Mayhoola for Investments S.P.C, an casts with an underlying profit of “Obviously we are still going to investment vehicle backed by a £42.8m in the year to 29 April, down grow... but we have got to make sure leading Qatari, had bought it from 15 per cent on the previous year. we do not have any hiccups along the private equity fund Permira and The group had forecast £50m-£54m way.” at the start of the financial year minority investors the Marzotto textile before “arithmetic errors”, timing SuperGroup PLC entrepreneurs. issues in its wholesale business and IT 400 p 386.25 12 Jul warehousing problems caused the 390 Betaworks to buy Digg for $500k group to warn on profit. 380 n New York technology development Dunkerton said, while the current 370 THE Olympic flame visited Stonehenge this Between now and the start of the firm Betaworks is buying news- environment was challenging and week, as the sprinter Michael Johnson took Olympics, City A.M. is publishing its sharing website Digg for $500,000. wet weather “unprecedented”, trad- 360 350 part in the fifty-fifth day of the torch relay. In Olympic Image of the Week. If you have Digg, an early social media company, ing in the first quarter was in line total, the flame will visit more than 1,000 340 a shot you think our readers will like, was at one time valued at $164m. As with management expectations. cities, towns and villages across the UK, and please email [email protected] with 330 of May, Digg was recorded as having The group, which trades as will be carried by 8,000 nominated bearers. IOW2012 in the subject line. Superdry, opened 26 stores in the UK an audience of more than 7m a month. and Europe, taking the total to 103 6 Jul 9 Jul 10 Jul 11 Jul 12 Jul SAP defies technology gloom EU sides with big telcos on fibre with stronger software sales

BY CITY A.M. REPORTER SAP shares, down 9.4 per cent in broadband rental space plans the last three months, traded up 2.6 per cent at €47.50. and major telecoms, with Telecom concerned that the region’s GERMANY’S SAP, the world’s “The results are much better BY CITY A.M. REPORTER Italia CEO Francesco Bernabe economy could fall behind Asia largest maker of business than the market had come to EUROPEAN regulators yesterday calling the proposal “simply and the United States through a software, yesterday delivered a expect recently,” one stock market backed away from forcing big crazy”. lack of broadband connectivity. stronger-than-expected rise in trader said. telecom operators to charge Large European telecom “In 2012 alone, 35m Chinese profits led by robust sales, defying The company didn’t give an smaller rivals less for renting companies welcomed the rethink households will be connected to a weakening trend that has hit outlook and the general feeling is space on their networks, while representatives of roughly very fast broadband,” said Neelie rivals. that technology spending might changing tack in their efforts to 100 alternative Internet providers Kroes, an EU Commission vice- SAP said its software revenues, weaken further as the Eurozone’s spur the buildout of fibre complained that the change president in charge of the Digital when measured by IFRS debt crisis deepens and US job broadband. meant customers would continue Agenda. accounting standards, rose 19 per creation stagnates. The European Commission had to be overcharged. “We need to do much better to cent to a record €1.06bn for the There has been plenty of argued that the only way to get Network tenants like Fastweb change that.” second-quarter. evidence of a weak second-quarter telcos to pick up the pace of and Iliad say rents are too high At the end of 2011, the EU had It had previously predicted a 15 in the tech sector. US software building faster fibre networks while the copper wire owners say just one quarter of Japan’s 20m to 20 per cent increase at constant firms Qlik Technologies and was to make renting old copper they need the cash from rents to fibre customers in 2010 even currencies. Informatica Corp as well as Indian lines less lucrative. invest in fibre infrastructure. though Japan’s population is Quarterly operating profit software services provider Infosys The idea triggered months of Governments and EU officials under a quarter of the EU’s 500m before special items rose 15 per have issued estimates below public sniping between regulators are growing increasingly citizens. cent to €1.17bn. market forecasts. FRIDAY 13 JULY 2012 cityam.com NEWS 17 CBI: State should act now to House prices stall in June but unlock 215,000 building jobs

BY TIM WALLACE local job creation across the UK in annual picture remains solid the short-term, and as the lead THE CONSTRUCTION sector is mover in the £250bn infrastructure The report reinforced the trend of while their value exploded 36 per ideally placed to create hundreds renewal needed to underpin BY BEN SOUTHWOOD regional disparity, with London and cent to £7.2bn according to the of thousands of jobs in the short economic growth in the long- AFTER six months of growth, house the south east increasingly divergent industry body’s data. run, leading to stronger economic term,” said the CBI’s Rhian Kelly. prices inched down in June, from the rest of England and Wales. growth in the long term, the “To get spades in the ground on according to a report released today “Prices in ten boroughs of the Number of housing transactions per month Confederation of British Industry infrastructure delivery, there must by LSL Property Services. capital reached record highs, with (CBI) claimed yesterday. be an urgent focus across the UK The average UK house price crept the average London house price 140, 000 But for the potential 215,000 jobs on bringing forward repair, down to £224,102, a 0.1 per cent fall outstripping the national average by 120, 000 to be created, the government maintenance and improvement on the month, said LSL. On an more than £185,000,” said Newnes. 100, 000 needs to push local authorities and projects, for example on roads, to annualised basis, however house This came after the Council of highways bodies to bring forward deliver immediate and tangible prices were up three per cent. Mortgage lenders reported yesterday 80, 000 infrastructure spending on projects results in terms of local jobs and “Despite the recession and the that lending had rebounded 60, 000 which can get underway growth.” ongoing financial crisis abroad, significantly in May after a 40, 000 immediately. That is on top of the £250bn the house prices have seen a period of lacklustre April. “It is more important than ever CBI says is already needed to boost steady annual inflation,” said The number of house purchase 20, 000 that we recognise the role of Britain’s infrastructure and raise director David Newnes. loans soared 33 per cent to 48,300, 0 construction, both as a catalyst for long-term economic growth. Apr ‘06 Apr ‘07 Apr ‘08 Apr ‘09 Apr ‘10 Apr ‘11 Apr ‘12 Leisure travel US job market lifts Eurostar as firms stay put upturn illusory BY MARION DAKERS TOURISTS are flocking to the Chunnel for their European trips, but hard-up business travellers have cut back on journeys, Eurostar said yesterday. warn analysts The train operator said passenger numbers rose two per cent to 4.8m BY BEN SOUTHWOOD weekly is very unreliable.” in the first half of the year, bolstered Much of the discrepancy in the fig- Over 12.3m holiday visits were made to our shores in the year to May 2012 by robust growth in leisure travel. NEW JOBLESS claims dipped to a four- ures comes from a later holiday for US The number of passengers year low last week in the US, accord- car firms, which close completely for originating from outside Europe ing to yesterday’s estimates from the two weeks – what is known in the UK rose by a whopping 11 per cent, with Department of Labor. as a “factory fortnight.” Brits cut back on holidays but a surge in tourists from the US and Dropping 24,000 in the week end- “Although claims have dropped the Far East travelling by Eurostar. ing 30 June, initial claims last week now, there is a good chance they’ll go The firm said the Diamond reached just 350,000, adjusted for sea- up when firms build up inventories tourism to UK hits record high Jubilee in June was its busiest ever sonal trends. and workers get their holiday,” said weekend, and that Eurostar’s role as But analysts warned the seasonal Ashworth. an Olympic sponsor will deliver a adjustment applied to the data dis- Meanwhile San Francisco Fed presi- BY JULIAN HARRIS But in the year to May a total of further boost. guised a jump of almost 70,000 in dent John Williams announced the 12.3m holiday visits were made to Overall, sales rose one per cent on new claims – suggesting the labour central bank is prepared to take more RECORD numbers of tourists the UK – an all time high for a year ago to hit £425m. market is weaker than action to cut unemployment – per- landed in the UK in the 12 tourism to Britain, and up three But chief executive Nicolas the headline figure haps including another “Operation months to May, official data per cent on the previous 12 Petrovic was less upbeat about suggests. Twist”. showed yesterday. month period. Total visits to the business traffic, which weakened in “The drop is a “If further action is called for, Yet the number of Britons UK also climbed by three per cent, the second quarter after a flat start meaningless blip,” the most effective tool would be holidaying abroad fell compared coming in at 31.3m. to the year. argued Paul additional purchases of longer- to the previous year, the Office for Tourists spent £18.2bn in the “Whilst leisure sales have held up Ashworth at Capital maturity securities, including National Statistics (ONS) revealed. UK over the year in question – a over the last six months, there is no Economics. agency mortgage-backed securi- Brits’ holiday visits in the year rise of six per cent – while Brits doubt that corporate clients and “Monthly seasonal ties,” Williams said. to May totalled 35.9m, down three abroad spent £31.2bn, a decline of business travellers, particularly in adjustment is quite “We stand ready to do what is per cent on the previous 12 month two per cent. the financial services industry, are accurate, but adjusting necessary to attain our goals period. Overall British journeys “This resulted in a deficit to the feeling the squeeze and are cutting of maximum employ- overseas – which include business UK of £13bn compared with back on their travel budgets as they John Williams ment and price sta- and family trips – dropped one per £14.5bn during the same period adapt to the economic wants to cut bility.” cent to 56.6m, the data showed. to May 2011,” the report said. environment,” he said. joblessness Household wealth rises despite Bank of Japan rejects easing as it projects healthy GDP growth recession but pensions neglected BY TIM WALLACE and “exports have shown signs of a pick-up.” huge number of people are not The top 10 per cent of households JAPAN’S economy is growing Domestic demand is largely BY JULIAN HARRIS saving for their own retirements. held 43.7 per cent of total relatively strongly and does not driven by reconstruction work, Across the UK, “64 per cent of household wealth (at £4.5 trillion) need any help from a looser while public investment is also BRITONS’ household wealth people were not paying in to a in 2008-10 the figures showed. Yet monetary policy, its central bank rising, it added. continued to grow between 2006-08 private pension in 2008-10, with 42 this proportion was slightly down announced yesterday, marking a The Bank is also hopeful that and 2008-10, but official figures per cent of adults having no private on the 43.9 per cent of household stark contrast with the downbeat deflation will be overcome, and revealed yesterday that nearly two pension savings at all,” it said. wealth that the top 10 per cent held tone of other major central banks. predicts inflation on the thirds of people are failing to put Furthermore, the figures revealed in 2006-08. In the week after the European consumer price index (CPI) to any money into a private pension. wide variations in the distribution of “The wealth of the very rich is Central Bank and Bank of England come in at zero this year and 0.7 Total household wealth – which wealth. Regionally, wealth was, on growing at an ever-increasing rate, loosened policy to combat the per cent in the next fiscal year. includes property wealth, funds average, highest in the south east of even as the economy sinks into sovereign debt crisis and a day But not all economists are from pensions, and other financial the country. The average level of double dip recession,” the TUC’s after the Fed hinted at future convinced. assets – grew by 12.9 per cent to total wealth for a household in the Brendan Barber complained. Yet Sam quantitative easing, the Bank of “An end to deflation next year £10.3 trillion between 2006-08 and south east was over half a million Bowman from the Adam Smith Japan pointed to a pick up in seems optimistic to us,” said 2008-10, the Office for National pounds (£562,000) in 2008-10. Institute said inequality “is a result growth in the economy. Lombard Street Research. “The Statistics (ONS) announced. In the north east of England, by of regional differences in the cost of “Business sentiment has been economy has a significant degree The rise “was mainly down to an comparison, the mean level of living... and if we want to cut it we improving moderately, of spare capacity: above trend GDP increase in pension wealth,” the wealth was £322,000, while for the should be fighting corporate welfare particularly in domestic demand- growth this year will not be report said, yet also revealed that a UK the average was £418,000. and cutting taxes for the poor.” oriented sectors,” said the Bank, sufficient to eliminate this.” 18 FRIDAY 13 JULY 2012 cityam.com

YOUR ONE-STOP SHOP FOR JOB MOVES, CITYDASHBOARD BROKER VIEWS AND MARKET REPORTS in association with CITY MOVES WHO’S SWITCHING JOBS Edited by Tom Welsh NEW YORK Ignis Asset Management QuantumFX intermediary wholesale and sub-advisory business. Clay has over 20 years’ experience in financial intermediary Jeremy Soutter has been The institutional division of Alpari has appointed Maxine sales, and has also served as a business development REPORT appointed global head of product Dennis as institutional sales executive. She will be manager at Franklin Templeton Investments in London. development at the asset responsible with developing the forex firm’s relationship management firm. He will join on with banks, brokers and hedge funds. Dennis has 20 years’ 1 August from Aviva Investors, experience in the City, and previously served as senior spot Bluefin Corporate Consulting where he has held a similar dealer at Citibank and as a director and FX trader at UBS. Albert Kuller and Maria Nazarova-Doyle have been Technology position for 13 years. Soutter has appointed to the business consultancy’s investment team. worked in asset management Simmons & Simmons Kuller joins from the Pension Protection Fund. He has since the early 1980s, notably at previously held roles at McGraw Hill and Bloomberg. shares push Gartmore Fund Management, Alyson Lockett has been elected to the board of the Nazarova-Doyle joins from PromSvyazCapital, the Moscow- Lloyds Bank and Henderson. international law firm. She is a finance lawyer in its London based investment management company. banking team, with a particular focus on distressed debt. Wall St lower Her appointment coincides with the retirement of Richard Macfarlanes Perry from the board after the completion of his term. Berwin Leighton Paisner The law firm has appointed Martin Zetter to the newly- The law firm has appointed Chris Webber as a senior S stocks edged lower yesterday, led by technology shares, while created roles of head of transfer pricing and senior Pioneer Investments associate in its banking and financial services litigation diminished chances of economist in its tax and structuring group. He joins from division. He will join the firm on 24 July, and previously monetary stimulus from major Ernst & Young, where he was director in its financial The investment management group has appointed Brian served as counsel at Bingham McCutchen, the US legal U central banks prompted investors to services transfer pricing group. Clay as head of its UK wholesale business. He joins from practice. Janus Capital, where he was head of sales for its shy away from risky assets. The Dow briefly moved into positive territory in sync with Procter & +44 (0)20 7092 0053 Gamble’s advance, with the blue-chip SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com average bouncing off technical sup- port at 12,500, analysts said. The S&P 500 earlier traded below its 50-day To appear in CITYMOVES please email your career updates and pictures to [email protected] moving average at 1,334. “We tested (1,334) and bounced, but the flavour of the market is still some- what tenuous, given the testing of these technical support levels and also LONDON REPORT BESTof theBROKERS the strength in the 10-year bond,” said Bucky Hellwig, senior vice president of Tesco PLC BB&T Wealth Management in 324 p 315.00 Birmingham, Alabama. 12 Jul The benchmark 10-year US Treasury FTSE sees biggest daily fall in three 322 note was up 11/32 in price, with the 320 yield at 1.482 per cent. The Dow pared most of its loss, get- weeks as fears over economy grow 318 ting a lift from the shares of Procter & 316 Gamble – up 4.6 per cent at $64.22 – RITAIN’S top share index dropped biggest FTSE casualty, down 6.7 per cent in after a source said activist investor in weak volume yesterday to post volume more than four times its 90-day William Ackman appears to be build- its biggest daily fall in nearly three average after it reported the flight of about 6 Jul 9 Jul 10 Jul 11 Jul 12 Jul ing a stake in the US household prod- Bweeks as growth concerns and a fifth of the money it manages in equities ucts company. Merck & Co. shares also fading hopes for near-term US monetary during its fourth quarter, hit by Eurozone TESCO bolstered the Dow. Merck’s stock rose stimulus hit investor sentiment. worries and a flagging global economy. Shore Capital has a “hold” rating on the supermarket giant and a target 4.1 per cent to $42.91 after a pivotal Minutes from the US Federal Reserve’s Among miners, the biggest faller was Rio price of 319p. The broker thinks Tesco is making steady progress trial of Merck’s experimental osteo- June meeting, released overnight, suggest- Tinto, down 3.5 per cent and taking just improving its performance in the UK, but has downgraded full-year porosis drug odanacatib has shown ed the central bank would be prepared to over five points off the index. Rival BHP earnings forecasts by nine per cent for the firm’s Europe division, 12 per that it reduces the risk of fracture. give stimulus through a third round of Billiton fell 3.3 per cent, and miners cent for the US and 9.5 per cent for Tesco Bank. Overall, Shore has But overall, market sentiment was quantitative easing (QE) but the economic claimed five of the top 10 spots on the FTSE lowered its 2012 profit forecast by 5.6 per cent to £3.55bn. weak, especially after the lack of any outlook would need to worsen first. fallers list. monetary easing by the Bank of Japan, That hit key commodities like copper Credit Suisse also lowered its earnings and few clues in the minutes from the which in turn weighed on the heavyweight per share (EPS) estimates for the sector. Bhp Billiton PLC Federal Reserve’s June policy meeting, mining sector, among the biggest drags on “With China growth and commodity 1,925 p 1,751.00 released on Wednesday. The lack of the index, and fanned concerns about the demand structurally slowing the earnings 1,900 12 Jul policy moves suggested major central sector outlook as the second-quarter earn- outlook is muted, with on-going cost pres- 1,875 banks were still cautious about the ings season kicks off. sures and minimal top line growth; we 1,850 need for further easing. Nervousness ahead of key second quarter forecast earnings down 20-30 per cent year- 1,825 The Dow Jones industrial average growth data from major metals consumer on-year in 2012 and small growth in 2013,” 1,800 was down 5.56 points, or 0.04 per cent, China, due today, also kept investors on it said. Earnings are likely to remain a 1,775 at 12,573.27. The Standard & Poor’s edge. “Markets overreact both ways, and strong focus for investors as the second 1,750 500 Index was down 4.32 points, or this time is on the downside. As Europe is quarter reporting season slowly kicks off. 0.32 per cent, at 1,334.76. The Nasdaq stagnating, China is slowing and America Shares in Intercontinental Hotel 6 Jul 9 Jul 10 Jul 11 Jul 12 Jul Composite Index was down 18.84 is losing momentum, expectations going Group dropped 2.3 per cent after US- points, or 0.65 per cent, at 2,866.19. into the earnings season are very low,” said listed rival Marriott reported a higher BHP BILLITON Technology shares have been among Mike Lenhoff, chief strategist at Brewin quarterly profit but said it was seeing Credit Suisse has downgraded the miner from “outperform” to the worst performers recently, bogged Dolphin. weakness in some international markets. “neutral” and has cut its target price to £21. The broker has lowered its down by profit warnings from compa- The FTSE 1000 closed down 56.23 points, “The general downbeat tone is unlikely outlook for a swathe of commodities firms including ENRC and Rio nies such as Advanced Micro Devices or one per cent, at 5,608.25, extending falls to end any time soon. EU finance Tinto, but warns that BHP Billiton will be particularly badly battered by and Applied Materials. For the later in the session as US stocks tumbled, ministers might have opted to wait until falling oil, coal and aluminium. It adds that BHP’s soaring capital month, the S&P technology sector is putting them on track for their sixth con- September before embarking on real expenditure means investors are unlikely to see a dividend rise this year. down 4 per cent and the PHLX semi- secutive daily fall. work on a banking union, but if progress conductor sector is off 8.7 per cent. Technical charts also pointed to further is not made soon, the July to August US-listed shares of Infosys tumbled weakness for the FTSE 100. period of 2012 could perhaps be as Yule Catto & Co PLC 11.1 per cent to $38.80, after earlier 142 p 128.20 “The recent development now points to volatile as its equivalent in 2011,” 12 Jul dropping to an all-time low of $38.12. at least an attempt to end the June correc- commented David Jones, chief market 140 The Indian IT heavyweight cut its sales tion (higher). If playing out as thought, the strategist at IG Index. 138 forecast more than expected as tech- market will soon be challenging the 5,435 136 nology spending was hurt by global support and, if broken, new lows will be 134 economic uncertainty. confirmed,” said a strategist at SEB. FTSE 132 There was some solace from data 130 Trading volumes were again thin, at 67.5 that showed the number of Americans 128 per cent of the 90-day daily average. With 5,608.25 applying for jobless benefits fell last July nearly half-way through, activity on 5,680 12 Jul 6 Jul 9 Jul 10 Jul 11 Jul 12 Jul week to a four-year low, though some the benchmark index is at under 30 per of that improvement may be tempo- cent of the levels posted for June, accord- 5,660 YULE CATTO rary. But analysts said it did little to ing to Thomson Reuters data. 5,640 sway the view the economic recovery “Volumes have been dreadful, and the N+1 Brewin has upgraded the chemicals group from “reduce” to “hold” has hit a soft patch. Olympics are not going to help,” said Ian 5,620 with an unchanged 12-month target price of 130p, having lowered its Oil prices turned around in after- Williams, a strategist at Peel Hunt. target from 160p last week in the wake of a profit warning. Despite the noon trading, with Brent crude jump- “You can’t see much reason for investors 5,600 grim earnings predictions, the broker thinks Yule’s current share price ing above $101 a barrel after the to change their positions at the moment”. already factors in this bad news and more, with room in the price for a United States announced increased Funds house Ashmore Group was the 6 Jul 9 Jul 10 Jul 11 Jul 12 Jul further 15 per cent slip in its earnings. sanctions against Iran. FRIDAY 13 JULY 2012 20 THEFORUM cityam.com/forum You won’t get better banks if you split one bad regulator into three OOD riddance to the gressors, the FCA and PRA seem deter- money. But there is no sign that the sands of complaints with just 1,000 Financial Services Authority mined to look constantly over the new regulators want to strengthen staff, and raises any broad concerns (FSA). This inflated docklands shoulder of firms, collecting massive such automatic controls. The PRA, with the Office of Fair Trading and the quango was supposed to amounts of data and intervening all instead, waxes eloquently (and exten- Bank of England. The newly-formed regulate the City, but its 4,000 the time and at all levels. sively) on the importance of collecting FCA contributes nothing extra, and its staffG were too busy ticking boxes to see Nor, from their statements so far, do “high quality data” – exactly the same interventions are likely to be damag- the ticking time-bomb of the banking the embryonic new regulators seem to bureaucratic tick-box stuff, it seems, ing as it struggles to second-guess both collapse. EAMONN BUTLER understand that the best regulator is that Osborne wanted to get rid of by traders and other regulators. Likewise, the FSA failed to take any competition – and that there is far too scrapping the FSA. Yes, those 4,000 Instead of micro-regulation, we need interest in Libor rigging, despite warn- little of that among banks right now. to encourage competition, and set ings from City journalists and the (PRA), while the Bank of England gets Britain’s banks have grown bloated broad standards of conduct – with Bank of England going back years. It back its old supervision role. because the regulatory burden is so The best regulator transgressions punished. The best way only woke up when Canadian and US Shades of the Tripartite system that high that only huge banks can afford ‘ to do that is to make auditors and agencies began to delve. Even then, fouled up so spectacularly in 2007/8, it. This, in turn, keeps out competi- is competition and executives personally accountable for about three-quarters of June’s much- with regulators saying “not my busi- tion. With consumers so disenchanted breaking the rules. Even large fines vaunted £300m fine was levied by ness, guv,” while simultaneously step- with the big banks, you would expect there is far too little of have little effect on large firms, and American, not British, regulators. ping on each other’s feet? Absolutely. new competitors to be springing up all bonuses barely suffer a dent. George Osborne was right to scrap The City doesn’t need three different over. In fact only one has, Metro Bank, that among banks now So if we want to clean up City regula- this overweight Brownian hulk. But, in regulators, each trying to second- and only then because it has deep tion, we need clear rules, clear punish- a new report today, regulation expert guess traders and each other, any pockets. The time and cost of regula- ments, stronger competition and clear Tim Ambler and I have concluded that more than a football match needs tion account for a large chunk of the jobs are safe. But for each bureaucrat regulation – not so many regulators Osborne’s new regulatory regime is three referees. £56.5m it lost in its first two years. It the PRA employs, traders have to that nobody knows who is responsible even worse. Initial signs are that the new regula- expects to break even only in year four. employ at least one more. Ultimately for what, and which all deny responsi- Cut off one head and, Hydra-like, tors will increase the cost and bureau- Auditors, shareholders and directors we all pay the cost, as customers and bility when things go wrong. three more grow. In the FSA’s place we cracy of doing business in the City. also have a key role in governance, as taxpayers. Eamonn Butler is director of the Adam have a consumer-protection body, the There will be plenty of jobs for 4,000 while the power of brands and compe- So what should be done? A better Smith Institute. Simple Rules For Complex Financial Conduct Authority (FCA), box-tickers. Instead of working like the tition between them is vital in pro- model for consumer protection is the Systems: Streamlining the UK’s Financial and a market watchdog, the Office of Fair Trading, simply setting moting good governance and Financial Ombudsman Service, which Regulation Regime is out today. It can be Prudential Regulatory Authority the broad rules and punishing trans- reputation, and in boosting value for manages to handle hundreds of thou- found at www.adamsmith.org

Agree? Disagree? Got a sharp comment? The Forum wants you to join the debate. Twitter: @cityamforum on the web: cityam.com/forum or by email: [email protected] Top responses will be reprinted in The Forum. Philanthropy only works when big donors treat charity like investment

HIS week’s announcement would have understood completely. wife of the Tetra Pak heir. The Gospel can fight the dangers that charity that British venture capitalist The steel magnate opened his Gospel of Wealth states that “it is no longer brings – waste, perverse incentives Michael Moritz has given THE LONG of Wealth in 1889 with the words: questionable that great sums and the creation of dependency. £75m to Oxford University is a “The problem of our age is the bequeathed oftener work more for Carnegie’s gospel has a flawed welcome reminder of the proper administration of wealth.” the injury than for the good of the enthusiasm for punitive death duties Tgreat contribution that many in the VIEW Not distribution, note, as many lazy recipient.” and a puritan dislike for conspicuous financial services industry continue thinkers might prefer, but The shrewd businessman in consumption that seem outdated to make to worthy causes, either in MARC SIDWELL administration. Carnegie saw that simply handing today, but its central thesis remains public or behind the scenes. Moritz’s Carnegie is better remembered over large sums of money to charity radical: it is a mistake to see a gift will support scholarships for the share something else as well: their today for the surviving products of at death was not terribly effective. wealthy business-owner as just a poorest students. In so doing, he focus on managing outcomes. This his philanthropy – Carnegie libraries He wrote: “It is well to remember purse to be emptied; charity can joins the likes of hedge fund approach, dubbed venture across the English-speaking world, that it requires the exercise of not easily do more harm than good; and billionaire Arpad Busson and his philanthropy, seeks to apply the New York’s Carnegie Hall and the less ability than that which acquired the level of skill required to make a Absolute Return for Kids charity and same discipline to achieving Carnegie Corporation of New York, the wealth to use it so as to be really fortune is also needed to spend one Lord Stanley Fink, the former Man charitable aims as its patrons would still making charitable grants 100 beneficial to the community.” to good effect. Today’s business Group chief executive, who donates apply to turning a profit in venture years on. But the philosophy behind He concludes that if those who philanthropists are following in his 30 per cent of his income every year capital or through a hedge fund. his giving also deserves attention. create wealth would like to put it to footsteps, and enriching us all in the to charity, and City A.M., which raised It’s an idea that one of the most Carnegie would have appreciated charitable uses, they have no choice process. £1.5m in its 2011 Christmas appeal. famous industrial age only too well another, sadder story but to administer the process Marc Sidwell is City A.M.’s managing But today’s big business givers philanthropists, Andrew Carnegie, this week – the death of Eva Rausing, themselves. Only such a discipline editor.

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in association with champagne reception sponsor venue sponsor category sponsors FRIDAY 13 JULY 2012 21 The Forum is open for you to take part. Got a sharp comment on one of today’s columns? Do you have another subject you want to share your opinion on? We want to hear your views. Email [email protected] or comment at cityam.com/forum RAPIDresponses Coalition can learn Firm interference Safety net? TOP TWEETS It’s pretty impressive that with 2.5m unem- from Lords reform [Re: Supporters of capitalism must help [Re: Should the government remove benefits ployed, G4S couldn’t find 2,500 people to expose blundering firms, yesterday] from wealthier pensioners?, Wednesday] wear high visibility jackets and search people. When you compare corporate wrong-doing Wealthier pensioners should not be receiving @WillardFoxton with the malfeasance committed by benefits. It’s a waste of money and it sends governments, corporate culpability is much the wrong message – the message of entitle- To all our affected customers – I’m very sorry. failures of Wilson smaller than the government’s. Would ment. Beveridge envisaged a safety net for The network is back. My focus now is restor- banks or other financial institutions offer times of trouble, not a means for providing a ing your confidence and trust in O2. HIS week’s massive backbench fraudulent schemes if governments did not dependent way of life. We need supply-side @ronandunneO2 rebellion by 91 Conservative encourage them to? The problem can be reforms to get our economy moving. Cuts in MPs was the largest Commons traced to a fundamental fallacy – that unnecessary benefits are a good place to While reluctance to intervene militarily in rebellion to have hit the government has a natural role in the start. Syria is understandable, the lack of any threat coalition since 2010, the economy, and a natural power to interfere in David Peddy by the West contrasts sharply with Iran. Tlargest rebellion on Lords reform in it. When governments interfere, corruption @janekinnimont the post-war era, and the largest and waste follow. But governments don’t Many people seem to forget when the winter rebellion at the second reading of a PHILIP COWLEY mend their ways as private companies must fuel payment was introduced. It was as a A slowing Chinese economy poses bigger bill on any issue since 1945. But the if they are to survive. The answer is to get gimmick by Gordon Brown before an election threat to the global economy than the most important vote was the one moving hostile amendment after the government out of the economy. that never happened. Eurozone. But together they spell big trouble. that didn’t take place. Facing almost amendment, and participating in fil- Edward Cline Joanna Murray @RBReich certain defeat, the government ibuster after filibuster. Powell and pulled the vote on the bill’s Foot, both vehemently opposed for programme motion, which would very different reasons, came together have set out the timetable for in an unholy alliance. debate. Between its second reading in Is a third runway at Heathrow essential for If you want to know why this is November 1968 and the final vote in important, take a look at the April 1969, the government suffered Parliament (No. 2) Bill. Most people 45 separate backbench rebellions, won’t have heard of it. Both its spread over 80 hours of debate, ensuring the UK’s future economic growth? prominent political supporters, like much of it in all-night sittings. The Richard Crossman (Labour) and end came after the nineteenth sepa- Reggie Maudling (Conservative), as rate closure motion, when the gov- well as its opponents, like Enoch ernment failed to muster enough Powell (Conservative) and Michael supporters to achieve closure. With Foot (Labour), are now dead. And the only five of the bill’s 20 clauses hav- bill itself died in 1969, battered ing been discussed the government beyond repair. gave up, exhausted. The Parliament (No. 2) Bill was And that is why, more than 40 YES NO Prime Minister Harold Wilson’s years later, the government needs, attempt at House of Lords reform somehow, to secure a programme and just like today’s bill, it was criti- motion if it wants to proceed. It’s not Simon Walker Rob Burton cised for being a dog’s breakfast. just the only way of getting Lords When the White Paper came before reform through the Commons, it’s Day by day, the clamour for airport expansion in the UK is Although some argue that the UK’s future prosperity is dependent the Commons in 1968, a total of 47 the only way to avoid gumming up growing. Recent interventions by the likes of Sir Richard upon allowing the expansion of Heathrow, achieving sustainable Labour MPs defied their whip to vote their entire legislative programme Branson, urging the Government to ditch their “farcical” outright economic growth requires the development of a nationwide against it. The Conservatives gave for the rest of the year. refusal to consider a third runway at Heathrow, are just the latest transport infrastructure – fit-for-purpose, fully integrated and with a their MPs a free vote and voted more Pulling the motion on Tuesday was in a long line of prominent and expert voices to join the crowd. clearly-defined investment strategy. Future options for expanding than 2 to 1 against the bill. sensible politics, but getting a revised The future of Britain’s air links to the rest of the world is not an Heathrow should not be ruled out, but a credible evaluation of costs Just as they did this week, the gov- motion through is going to be near academic question which will bear sluggish contemplation. It is and benefits, combined with other implementation challenges, ernment achieved the bill’s second impossible. Conservative rebels have of vital importance, given the potential for every flight to bring point to the fact that these options are not deliverable in the near reading without too much trouble shown no willingness to bend, while inward investment and new trading opportunities. The future. Equally important in advertising the fact that the UK is open (although just like this week the hos- Labour, who support the bill in prin- government must realise that large numbers of prominent for business is the need to focus on short-term solutions. These tility shown during the debate ciple, are unwilling to help the coali- organisations, companies and individuals are not exerting so should include making better use of runway capacity at other major should have been a warning of what tion out, just as the Conservatives much effort to push for greater airport capacity for trivial airports, and building resilience into connecting surface access links was to come). refused to help Wilson out in 1969. With no programming motion the Philip Cowley is professor of parliamen- reasons – they are doing so for the good of the entire British to avoid dependency on individual road and rail links. Rob Burton is director of Roscarrek Consulting, a transport government endured a torrid time tary government at the University of economy. Nottingham, and author of The British consultancy. once it entered committee, with Simon Walker is director general of the Institute of Directors. backbench opponents on both sides General Election of 2010 (Palgrave).

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

General enquires: 020 8267 4043 | [email protected] | Awards night: Wednesday 17 October. FRIDAY 13 JULY 2012 22 cityam.com Inside the newly opened Hippodrome, polar‘ bears and elephants paraded about LIFE&STYLEGOING OUT and a troop of dwarves dived into a tank” FILM WHERE SEEKING A FRIEND FOR THE END OF THE WORLD TO DRINK Cert 15 | By Steve Dinneen hiiii Hip, hip, odrome! TIM BADHAM EEKING a Friend For the End of the World is an almost Zoe Strimpel on the rebirth of Leicester Square’s iconic Hippodrome unbearably self-satisfied title Don’t stop your S for a movie. In the event, it acts as a handy litmus test for what you’re going to have to endure. boozing to eat In content, if not tone, it’s pretty close to Lars Von Trier’s LONDON’S RESTAURANT scene has Melancholia – a film in which the continued to blossom recently – and world is about to end, but not luckily for those who favour the liquid diet, really one about the end of the most of them come complete with world, looking instead at the adjoining bars. The first and latest of such minutia of human life in the days venues is the Zédel Brasserie, Bar & before its extinction. Cabaret, opened by the partners Steve Carell plays Dodge, a responsible for destination dining like The dorky insurance salesman whose Wolseley. Alongside the Parisian brasserie, wife leaves him as soon as she gets Zédel comprises of The Crazy Coqs, a live wind of the imminent apocalypse. entertainment space awash with Art Deco He mopes a lot but he’s generally opulence, and Bar Américain, a classic pretty likable, which is just as cocktail bar drawing inspiration from well, as everyone else is entirely, 1940s NYC with a debonair design that irredeemably hideous. would put Clark Gable at ease. The smattering of funny Over in Knightsbridge, the Bulgari Hotel moments are clumped near the recently opened, with a bar aptly titled Il beginning, when Dodge goes to a Bar. It is really something to behold, with decidedly middle-class dinner the ceiling finished in titanium, the floor in party at which the hostess black granite, plenty of polished playfully hands out syringes after mahogany, mirrored surfaces and as its dessert, cooing: “who wants some centrepiece a striking, hammered stainless heroiiiiin?”. Another drunk guest, steel bar with a thick glass top. played by Patton Oswalt, delivers a Over in the City, the most high-flying monologue about how the end of The revamped Hippodrome Casino opens officially today and will offer 24/7 gaming, eating, drinking and entertainment. launch of the summer is taking place on the world has greatly improved top of the Heron Tower with the opening his chances of getting laid. EICESTER Square, 1900. Inside the better than most people know their own lobster fish fingers. In addition to the of SushiSamba. Guests will take express Then Dodge meets love interest newly opened Hippodrome, polar homes. On our hard-hat tour last month, cabaret theatre and restaurant, the scenic lifts to arrive at a venue boasting Penny, a role butchered with bears and elephants parade about amid the densely complex wires and Hippodrome includes two extra floors of the highest outdoor terraces in London impressive heavy-handedness by L and a troop of acrobatic dwarves sandy half-built structures, he looked as gaming, four private dining rooms, five with a total capacity of 650 guests and Keira Knightley. Her character dive from the Gods into a tank – across familiar as someone walking round their bars, a double-level smoking terrace and conforms so closely to the Manic the room, Harry Houdini is performing front garden. More than that, he seemed numerous event spaces throughout. Pixie Dream Girl trope that she is some of his most spectacular acts. At its serene; confident that this building, so The challenge for Thomas is to keep entirely interchangeable with any peak, the Hippodrome, built by broken up over the years, was about to be the venue busy, or at least, feeling busy, number of self-consciously quirky Victorian theatre architect reborn in awesome form. 24/7. He will do that by being clever female leads (think Natalie extraordinaire Frank Matcham, was So what’s it like? A long, multi-layered about space: closing down extra rooms Portman in Garden State or London’s number one spot for glamour, entrance that looks infinite greets you at at slow times to ease the action into the Kirsten Dunst in Elizabethtown). glitz and variety shows. In the 1950s, as the front (there are several other cabaret room, or even into smaller A scene in which she describes the legendary Talk of the Town, it saw entrances, including one straight from rooms. But being perched on Europe’s her deep affinity with vinyl the likes of Judy Garland, Shirley Bassey Chinatown). The Matcham Room is the busiest corner is not an opportunity he records is so laughably trite I and Julie Andrews debut or perform. A main event: a 180-seat cabaret theatre is going to miss. “We embody the ambi- actually groaned out loud, which long period of night-clubbery followed; with that high ceiling from which the tions of the changes to the Gaming Act I suppose is marginally better including a stint under Peter dwarves used to leap. It’s got enormous which allows venues the offer visitors than vomiting into my lap, which Stringfellow. Finally, as the burlesque globular chandeliers, gambling tables, a the opportunity to eat, drink, gamble was the second option. venue Le Clique, it closed in June 2009. raised stage, and balconies where people and watch some of the world’s top enter- The pair embark on a road-trip But today Simon Thomas, a bingo can eat, drink and spectate. Elsewhere, tainers,” says Thomas. “All under the of sorts, the reasons for which are magnate and passionate advocate and cosy gaming rooms look out on Charing same roof.” If that’s not a crowd pleaser, so predictable it isn’t worth devotee of the vast Victorian venue, Cross Road, ladies’ loos are so well nothing is. recounting. There is zero unveils the new Hippodrome, on stocked they sport GHD hair straighten- Tony Christie, Julia Dimbleby and Julian Zédel Brasserie, Bar & Cabaret chemistry between them. In fact, Europe’s busiest corner. Having poured ers (Thomas emphatically wants the Ovenden are the first three performers. Tickets their relationship is so anemic the £40m into the refurb, which took 30 female clientele to feel welcome), and from £20. For more info and booking, go to hip- two exclusive bars serving cocktails that movie plays like some kind of months, Thomas knows the building 150-cover restaurant serves the likes of podromecasino.com. take their inspiration from Peru, Brazil and Orwellian exercise in emotional Japan. desensitization. Dodge could have Nearby in Shoreditch, Mark Hix opened reached over and strangled the Tramshed in what was formerly an life from poor Penny and you’d electricity generating facility for the just continue to stare at the Proms to kick off with an all-English menu Tramway System and there still remains a screen, glassy-eyed, palpable buzz in the air. Tramshed features dribbling. THE Proms start today, and so an art gallery named Cock and Bull Director Lorene begins London’s most (chicken and steak are the only two main Scafaria assumes a impressive yearly cultural festival. courses on the menu) as well as a lounge baffling degree of Naturally, rather than be eclipsed bar, where you can imbibe cocktails, stupidity in her by that other London event this concocted by resident Hixologist Nick audience, triple year, something to do with Strangeway, underneath the fixed gaze of underlining exactly sport, the Proms has joined a cow and cockerel immersed in how you should be forces with it, forming a key formeldahyde, courtesy of Damien Hirst. feeling at any given part of the the London 2012 If you’re more in the mood for moment and Festival. Opening night of the something easy and cheesy, go downstairs laboriously Olympics, then, will be at King’s Road’s newest pizza joint connecting every heralded with Beethoven’s Brooklyn Bite and kick back in a hip last dot in an Ninth Symphony conducted by speakeasy lair complete with a mural of increasingly dull Daniel Barenboim, the the Brooklyn Bridge and lipstick red tapestry of two- culmination of a week of banquettes. Across the Thames in dimensional Beethoven symphonies. Battersea, steakhouse The Gaslight Grill schmaltz. By two Other highlights this year has an interminable list of gins and a thirds of the way include the Berlin louche Victorian-country-house-meets- thorough, I was Philharmonic with Simon Rattle gin-palace vibe. Perhaps the best thing praying the sky would and the Vienna Philharmonic about all of these bars: if you whet your hurry up and collapse. with Bernard Haitnik. Tonight is appetite, there will always be a restaurant Not in the movie, you grandly British, though: Elgar, nearby to dine in. Tim Badham is the understand: in real Delius, Tippett and a world founder of Innerplace, London’s leading life. It’s that bad. premiere from Mark-Anthony entertainment concierge service. Turnage. www.bbc.co.uk/proms The Proms kick off with a programme starring Elgar and run until 8 September. www.innerplace.co.uk. FRIDAY 13 JULY 2012 cityam.com TV & GAMES 23

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16 35 28 10 4 24 21 29  SUDOKU KAKURO 30 26   21 13 Place the numbers from 1 to 9 in each empty cell so that 40 Fill the grid so that each  each row, each column and each 3x3 block contains all the 15 24 block adds up to the total 11 numbers from 1 to 9 to solve this tricky Sudoku puzzle.     in the box above or to the 14 11 3 24 9 left of it. 11 39     You can only use the 5 25    digits 1-9 and you must not 33 19 34 17   use the same digit twice in 21 14 a block. The same digit may 29 17 6 23    occur more than once in a 7 19    row or column, but it must 11 18    be in a separate block. 8  20 23     10 27   ACROSS DOWN 1 Espresso coffee 1 Inventories (5)     with milk (5) 2 Time of life WORDWHEEL 4 Skin covering the between the ages    C L top of the head (5) of 13 and 19 (5) Using only the letters in the Wordwheel, you have 7 Consequently (4) 3 Make a mistake (3)  ten minutes to find as many words as possible, E D 8 Conduit for waste 4 Cry (3) none of which may be plurals, foreign words or products (5) 5 Extreme greed for proper nouns. Each word must be of three letters T 9 Pulse vegetables (5) material wealth (7) or more, all must contain the central letter and S A 11 Being on topic and 6 Glue (5) LAST ISSUE’S 10 letters can only be used once in every word. There prompting thought (11) Residence of a 15 SOLUTIONS KAKURO is at least one nine-letter word in the wheel. Yoko ___, widow of clergyman (5) IO John Lennon (3) 12 Pompous or 16 Pile of decaying pretentious talk QUICK CROSSWORD 7 9 2 1 6 vegetation for use or writing (7) 5 3 2 41 2 41 SUDOKU   13 STAKE LUCKY 9 5 8 5 3 7 9 6 in the garden (7,4) Also (3) P P N R I   7 2 449 8 7 19 John Quincy ___, 14 Negative word (3) R R MACBETH    A LOHA A T 8 17 12 6 US president (5) 16 Position of          N P STANCE 4 6 2 3 1 8 5 21 Native of Des Moines, professor (5) GROSS MEANS 9 7 832 8 WORDWHEEL    for example (5) 17 Disorderly ASTERN N E 632 1 5 4 9   V A EXTRA 22 Scottish lake (4) outburst (3-2) 8 253 9 117          TACT I CS A M The nine-letter word was 23 Bad-tempered and 18 Spotted horse (5) G U I T A 9 5 8 4 2 1 36 ABSOLVING   irritable (coll) (5) 20 Artful (3) LEVER AGA I N 1 339 8   24 Popular web portal (5) 21 Gelid (3) FRIDAY 13 JULY 2012 24 MONEY THEPUNTER RACING TRADER BACK BILL ESDAILE, OUR RACING EXPERT, PREVIEWS THE ACTION FROM NEWMARKET AND NEWBURY IF YOUR HORSE FINISHES 2ND TO SHOLAAN Sepoy has the

BETFRED ‘THE BONUS KING’ STAKES 6 Furlongs, Heritage Handicap, Newmarket 1.50pm, Live on CH4 class and soft 7/1 Sholaan 16/1 Mr Red Clubs 7/1 Mince 20/1 Bayleyf 9/1 Piri Wango 20/1 Fulbright 11/1 Balty Boys 20/1 Muaamara 11/1 Glen Moss 22/1 Dam Beautiful 25/1 ground form 11/1 Van Ellis Chunky Diamond 12/1 Accession 28/1 Big Note 12/1 Place In My Heart 28/1 Diamondhead 12/1 Rebellious Guest 28/1 Last Bid 16/1 Gatepost 33/1 Semayyel Each-way 1/4 the odds a place 1-2-3-4 to run off with

IRISH THOROUGHBRED MARKETING CHERRY HINTON STAKES 6 Furlongs, Group 2, Newmarket 2.25pm, Live on CH4 the July Cup 7/2 Sendmylovetorose 11/1 Sandreamer OMORROW’S instalment while the likes of Mayson, 9/2 Agent Allison 12/1 Jadanna of the QIPCO British Dandy Boy and The Cheka don’t 5/1 City Image 33/1 Mandy Layla Champions Series takes look up to this level. 5/1 Maureen 40/1 Fantacise T us to Newmarket for one Instead it is the former of the most prestigious sprints Australian-based speedball 15/2 Premier Steps 66/1 Threes Grand of the summer in the shape of SEPOY, as short as 9/1 with 10/1 Lovely Pass 100/1 Masarah the July Cup (3.20pm). Coral, but as big as 12/1 on Frankie Dettori can win his first July Cup aboard Sepoy tomorrow afternoon Each-way 1/4 the odds a place 1-2-3 It’s not often the six-furlong Betfair, that I fancy. In a nation contest takes place on soft full of sprinting talent Sepoy on debut before bolting up in a the £250,000 Weatherby’s Super ground but with the atrocious was talked of as one of the best- weak race at Wolverhampton. Sprint at Newbury (3.50pm). She weather continuing that is what ever after winning 10 of his first Reports that he is working well took three attempts to break her ETIHAD AIRWAYS FALMOUTH STAKES we will have tomorrow. And 11 races Down Under, including at home suggest an entry in the maiden but did so in tenacious 1 Mile, Group 1, Newmarket 3.00pm, Live on CH4 these conditions will not help four Group Ones. Group Two Celebration Mile at style at Goodwood. Prior to that, many horses in a race in which More importantly all 10 of Goodwood next month is not the daughter of Dutch Art ran 10/11 Golden Lilac 16/1 Elusive Kate nearly all the charges have ques- those victories were on good-to- optimistic and, off a fair handi- well on soft ground at Salisbury, tion marks hanging over them. soft or soft ground and most in cap mark, he should go well. so conditions should be 13/2 Maybe 18/1 Lay Time 8/1 33/1 Ante-post favourite Bated Breath better races than this. The Irish trainer David Marnane is fine tomorrow. Giofra Irish History may not run if the surface Elusive Quality colt wouldn’t be getting a reputation for plunder- Trainer William Haggas has 10/1 Joviality 33/1 Siyouma doesn’t improve, but the Roger the first to disappoint in Dubai ing big British handicaps and won this lucrative prize twice 11/1 Chachamaidee 40/1 Barefoot Lady Charlton inmate is yet to win a on the unfamiliar Tapeta sur- the handler can grab another and his filly gets in off a very low 14/1 Alanza Group One race in seven face and the fact Godolphin with JAMESIE in the Bunbury weight with the assistance of Each-way 1/4 the odds a place 1-2-3 attempts. He has also only won have persevered with him seems Cup (2.40pm). The gelding ran a the more than capable Kelly Above races: Non-runner money back. Rule 4 may apply. one of his last eight starts so, at significant. As the second high- cracker at Royal Ascot on the Harrison in the saddle. In a race Prices subject to fl uctuation. 10/3 with Coral, I am more than est-rated entrant in the field, seemingly unfavoured near side looking to lack a real star, happy to oppose him even if he and with trainer Mahmood Al when just losing out in the Momalorka should offer us does line up. Zarooni more than capable of Buckingham Palace Stakes. He some good value at a double- 2011 Golden Jubilee winner getting one ready after a layoff, I can set the record straight digit price. Society Rock has come in for think Sepoy deserves more tomorrow with an advantageous You can follow me on Twitter support this week and will like respect than the bookies are cur- looking draw up the stands rail. @BillEsdaile for all my views. 1/4 ODDS the ground, but the concern is rently offering. Current joint-favourite Excellent n the son of Rock Of Gibraltar The opening handicap Guest is far too hit and miss for Pointers… saves his best form for Ascot (1.40pm) can go to FLUCTUATE me so snap up the 7/1 for FLUCTUATE 1.40pm Newmarket (tomorrow) ALL CHANNEL 4 & nowadays. Australian raider for the red-hot combo of Jamesie with Coral. JAMESIE e/w 2.40pm Newmarket (tomorrow) Ortensia must put a tame effort William Buick and John Gosden. Finally, MOMALORKA could SEPOY e/w 3.20pm Newmarket (tomorrow) NEWMARKET RACES at the Royal meeting behind her He ran well in the Wood Ditton be worth an each-way interest in MOMALORKA e/w 3.50pm Newbury (tomorrow) £20 FREE BET! Expect Fabre’s Golden Lilac to flower at Newmarket FOR NEW CUSTOMERS NDRE Fabre is quite time. She then reappeared in I doubt she quite has the close on his first start. rightly recognised as one the Prix D’Ispahan at gears of Golden Lilac. It’s over to York for the Text MOBILE of the greatest trainers Longchamp in May, beating John Gosden had yet final selection where I think coral.co.uk to 65559 A of all time and it is two top class colts in Cirrus another day to remember on SENTARIL can beat Margot always worth sitting up and Des Aigles and Planteur. Saturday when landing the Did in the Summer Stakes taking notice when he sends Fabre has said this filly Coral-Eclipse with Nathaniel, (2.35pm). William Haggas’ 1700+ Shops 0800 242 232 his horses over to these shores. could end up running in the which added to the earlier three-year-old filly was only nationwide Mon-Sat from 8.30am He runs the four-year-old filly Arc in October, but she has victories of Great Heavens and beaten a length in the Jersey GOLDEN LILAC in this been quite keen in her races Trade Commissioner. I’m not Stakes at Royal Ascot and afternoon's Group One and the drop back to a mile sure he’ll be winning any of drops down to six furlongs for Falmouth Stakes (3.00pm) and should help her settle. The this week's Group One prizes, the first time in her she is strongly fancied to land ground, although not ideal, but he is set to unleash an short career. Her trainer the latest round of the QIPCO shouldn't pose many problems interesting colt this afternoon believes that could be the British Champions Series. and I just feel she is a class in the maiden at 3.45pm. making of her and with The daughter of Galileo has above this afternoon's rivals. GHURAIR is making his Margot Did running won six of her seven career Maybe has been debut and the Hamdan Al disappointingly starts, including three Group disappointing in both her Maktoum-owned son of this season, she is expected One successes. Her one defeat starts this season and I don’t Elusive Quality is very well to start her sprinting was a thoroughly respectable think the Windsor Forest regarded back at Clarehaven. career in style. third to Galikova at Deauville form of Joviality and The stable have already We reserve the right to change prices before or during the guarantee period should there be any ‘non-runners’ from the published n list or a going change from the time of publication of the prices. MONEY BACK OFFER: Win stakes and win part of each-way last summer, and that Chachamaidee is anything to unleashed a number of Pointers… bets refunded if your selection fi nishes second to SHOLAAN. Max refund of £200 per customer. Singles only. NEW ACCOUNT OFFER: Available on mobile, coral.co.uk and by phone. New customers, 18s+ & UK residents only. Deposit and stake up to £20 performance was even more write home about. The biggest talented juveniles this season SENTARIL 2.35pm York (today) on any sporting event(s) to receive a matched deposit free bet on selected markets. Free bet stake not returned with any winnings. GOLDEN LILAC 3.00pm Newmarket (today) Full terms at coral.co.uk/20tc You will be charged the cost of a standard SMS by your mobile network provider. Mobile service meritorious given she was danger could come from and the mount of Paul compatible with all internet enabled handsets. Bet Responsibly. Gambleaware.co.uk - Call 0808 802 0133 suffering from a virus at the fellow French filly, Giofra, but Hanagan is expected to go GHURAIR 3.45pm Newmarket (today) cityam.com FRIDAY 13 JULY 2012 SPORT 25 i Glenmorangie only ever uses its casks twice i It takes 100 years for The Tarlogie Springs water to reach open ground

10Open Championships Those who deal with have been the Open’s pressure held here will secure victory

’M really looking forward to the Open – it’s a great event. It’s actually my second favourite in GOLF I golf, and Royal Lytham’s a very good course. It’s looking like it’s going to be a cracker. COMMENT Royal Lytham is tight and short. There’s more emphasis on hitting fairways and greens than, for SAM TORRANCE example, somewhere like St In association with Glenmorangie, Andrews, so it’s therefore official whisky of the Open Championships definitely one for the guy who is right on top of his game. lot of greens, but he fell down last The four Majors are the four week and hurt himself, though I biggest events, and it tends to be don’t know how severe the injury where you’re from that decides is. He says he’s okay but with the which you consider the best. I’ve elements it could be difficult, yet if always thought the British Open’s he’s fit and healthy he’ll be right the best, but the Americans prefer up there. the US Open. Donald’s an exemplary golfer, The British Open is a very he’s No1 in the world, and he’s Darren Clarke has since struggled to recapture the form that inspired him to land his first career Major at last year’s Open challenging event because it’s very accurate with his irons, so always near the coast, and the he’s another definitely suited to elements can make it the course. very difficult; unique With Simpson, it’s a case even. You’ve got tee- of him having just won a off times from Major at the US Open. around 6.50am until He’s a young, up-and- Clarke chasing form as 4.50pm so the coming American weather can make a 458m star – part of their huge difference. If people will watch next generation that’s you’re playing early The Open at coming through. Royal Lytham & in the morning, St Annes on TV I also like Rose’s and someone else game, though. He’s been he aims to defend title is playing at playing very well, and he’s 4.20pm, you can a very good, solid player. BY FRANK DALLERES all the right things, practising, I’m craving more success,” have a five- or six-shot The pressure, however, for all of it just hasn’t he added. “I wasn’t supposed to win it difference in conditions. them, will be as high as it gets. It’s OPEN champion Darren clicked so far. I’ve last year and its nice to go to Lytham Overall, I expect Tiger Woods, Lee what the players compete for, but Clarke admits he is desper- had a wonderful where I’m not supposed to win it this Westwood, Luke Donald, Webb the pressure is what you make it ately short of his most formi- year off the golf year. I feel no pressure as my name is Simpson and Justin Rose to be and if you’re going to win Majors, dable form as he prepares to 1,500 course, but a on the Claret Jug and it will be among those competing for victory. that’s what you have to go through. defend his title at Royal Catering Staff very frustrating there forever.” Woods has already won three Sam Torrance OBE is a multiple Ryder Lytham next week. will be employed year on it.” But Clarke’s slump has not times this year, and he’s the Cup-winning golfer and media Ulsterman Clarke was a Far deterred 2002 winner Ernie greatest player that’s ever lived. It’s commentator. He has won 21 European hugely popular but unex- from being Els from tipping him been said that short courses don’t Tour titles in a career spanning 40 years, pected victor 12 months ago content with as a dark horse. necessarily suit his strengths but I and sank the putt that clinched victory for at Royal St George’s, winning a long-awaited first “That’s one disagree. His best play is when he’s Europe in the 1985 Ryder Cup. A player the first Major of his career aged 42, Major title, Clarke says last place where he’s playing position golf, as opposed to on the team on eight occasions, winning but has made just one cut all season. year’s three-stroke triumph comfortable,” when he’s standing and smashing four times, he also led the side to victory as “I play golf to win tournaments at Sandwich has merely said Els. “I know it, so I actually see this event as captain in 2002. Since 2004 he has and I’ve been nowhere near that whetted his appetite. 160 he’s struggling being in his favour. competed on the European Senior Tour, standard for quite some time,” he “I know what winning a bunkers rebuilt with his game, Westwood’s a great striker of the winning the Order of Merit three times. said. “I’ve got pretty annoyed and Major is like and I want over last four [but] I know he’s ball, he hits a lot of fairways and a Follow him on Twitter @torrancesam although I’m practising and doing more of it – that’s why I’m years not that far off.” TORRANCE’S TIPS: OPEN CONTENDERS Tiger Woods Lee Westwood Luke Donald Webb Simpson Justin Rose Age: 36 Nationality: USA Age: 39 Nationality: English Age: 34 Nationality: English Age: 26 Nationality: USA Age: 31 Nationality: English Ranking: 4 Majors won: 14 Ranking: 3 Majors won: 0 Ranking: 1 Majors won: 0 Ranking: 5 Majors won: 1 Ranking: 9 Majors won: 0

Please savour responsibly drinkaware.co.uk 26 FRIDAY 13 JULY 2012 SPORTcityam.com/sport @cityam_sport Wiggins’ work rewarded with Terry prepares for D-Day in relief on Tour Court hears he used BY SPORTS DESK STAFF “straightforward BRITAIN’S Bradley Wiggins admitted his great relief after yesterday retaining the Tour de France’s yellow racial abuse” jersey and extending his overall lead in another promising day for BY FRANK DALLERES Team Sky. FORMER England captain John Terry At 2 minutes and 5 seconds will learn today whether he has been behind Wiggins, compatriot and found guilty of what was yesterday team-mate Chris Froome is now in termed “straightforward racial abuse” second place after defending of QPR footballer Anton Ferdinand dur- champion Cadel Evans dropped ing a match last year. to fourth, while Italy’s steadily A week-long trial and months of claim improving Vincenzo Nibali takes and counter-claim, which have already third. Yesterday’s stage, the race’s seen Terry stripped of the national arm- 11th, was won by the Frenchman band and Fabio Capello resign as head Pierre Rolland, incidentally another coach, will reach a climax at around Team Sky rider. 2pm this afternoon when chief magis- “When we got to the last climb, trate Howard Riddle delivers his verdict. with about 5km to go, the relief Chelsea defender Terry admits utter- started to come that we were almost ing the phrase “f****** black c***” in the at the finish,” said Wiggins. direction of Ferdinand during a “Once Cadel had got dropped and Premier League match on 23 October we were in that little group, the 2011, but denies committing a racially sense of relief was slightly aggravated public order offence. He overwhelming that we’ve actually argues that he said the words in a ques- got through the stage. tioning manner in response to what “And to have taken more time off he thought was an accusation of Cadel, which I don’t think we really racial abuse. expected in the morning.” If found guilty, Terry faces a fine of up to £2,500 but not a jail term. Prosecutor Duncan Penny QC told Westminster Magistrates Court yester- day that Terry had used the words not as a question but as an insult, in response to taunts about an alleged extra-marital affair with the former partner of then-England colleague Wayne Bridge. “Just as he did with the hand over the mouth to imply bad breath, just as he did with the ‘f*** off, f*** off’ directed towards Mr Ferdinand, and finally,

when he was fed up, he picked up on GETTY the topic of Mr Ferdinand’s abuse, Chelsea captain John Terry played in every game for England during the recent European Championship in Poland and Ukraine namely the extra-marital affair, and retorted with ‘and yours’, or something sophisticated thought processes than Mr Ferdinand had accused him of, then told the court on Wednesday he had Hugo Rodallega scored 24 goals at Wigan to that effect, and straightforward had hitherto been going on on that that’s the end of this particular case,” been unable to distinguish from racial abuse,” Mr Penny said in his football pitch,” he added, on the fourth he said. his standpoint. closing argument. day of then trial. Carter-Stephenson said it was “incon- Capello quit the England job in The notion that Ferdinand deliberate- Ferdinand was “inconsistent and ceivable” that Terry would have February in dispute with the Football Rodallega in ly falsely accused Terry, 31, of racial unreliable” in his testimony, George snapped at taunts about the alleged Association over its decision to strip abuse in the heat of the moment Carter-Stephenson QC argued for affair, having been subjected to them Terry of the captaincy while the allega- because other barbs had failed was the defence, adding that the “hundreds” of times before. tions remained. The trial was originally Fulham move unlikely in the context of their prosecution’s argument was founded He also suggested it was possible that scheduled for February but postponed quickfire, tit-for-tat verbal spat, Mr on “speculation”. Terry had misunderstood Ferdinand’s until after the European BY FRANK DALLERES Penny said. “No matter what the words actually jibes, wrongly interpreting the word Championship, during which Terry “A false allegation of racism would be were, if they were or may have been Mr “Bridge” as “black” – words the defen- played for England in all four games. FULHAM manager Martin Jol has an accusation which involved more Terry repeating back what he believed dant’s Chelsea colleague Ashley Cole The trial continues. toasted the arrival of striker Hugo Rodallega after signing the Colombian on a free transfer from Premier League rivals Wigan. Jol revealed the 26-year-old, who scored 24 goals in 117 Latics Freund first of many changes under AVB appearances, had turned down suitors at home and abroad in was interested to see Steffen comes in, someone will have to go – signing Emmanuel Adebayor favour of securing a move to Freund appointed as Andre they’ve got Friedel, Carlo Cudicini permanently, because he’s done Craven Cottage. Villas-Boas’s assistant manager FOOTBALL and Heurelho Gomes. In the very well. The problem with him is “I am delighted that Hugo has I at Tottenham. He’s obviously long-term it’s the right that after his start at a club, he decided to join Fulham,” he said. Daniel Levy’s man, over Villas-Boas, thing to do, but whether goes off the boil, but he’s now “There has been a lot of interest in which is a little bit peculiar. COMMENT Spurs have that money on at the point in his career him from other top-flight teams in That’s not to say that it won’t that position right now is where he’ll look to stay put, so England and abroad, so to be able work, but you wonder about the another case. Spurs should get the best out to add his quality to our squad is a chemistry between them if that’s TREVOR STEVEN If Luka Modric goes, of him. massive boost this early in our the case. Freund has already been they’ll have to replace Jan Vertonghen, the £10m preparations for the new heavily involved in coaching, but and, incidentally, even if they have him. He can only defender, also looks to be a campaign. He’s a great addition Villas-Boas has got a lot to prove different roles, Levy runs the club really go to one of good signing. They needed to and I think he’ll contribute very this year. similarly to Roman Abramovich. Europe’s top clubs, replace Ledley King, and the well to our style and philosophy.” It’s not hugely different to Following Freund in to the club but it’s a key position ageing William Gallas. The Rodallega, whose arrival Roberto Di Matteo being his could be a new goalkeeper, by the that would need to be priority now has to be a striker compensates for the departure of number two at Chelsea – having looks of things, even though Brad filled. I’m sure they’ll be and a replacement for Modric. Pavel Pogrebnyak to Reading, said: someone in his dressing room with Friedel’s done fantastically. France’s scouting a replacement. I Trevor Steven is a former “I’m thrilled to have signed for a knowledge of how the club Hugo Lloris has been linked and if know they’ve signed Gylfi England footballer who played in Fulham. I wanted to stay in operates. But it looks to me as they want him he’ll have to start Sigurdsson, but he’s not of both the 1986 and 1990 World England and I’m delighted that I though Villas-Boas hasn’t got the every game. He’ll be very expensive, Modric’s quality. Cups and the 1988 European now have this opportunity.” same power he once had at Chelsea though he’s high in quality. If he Equally important is Championships. FRIDAY 13 JULY 2012 cityam.com 27 Britain’s Bradley Wiggins is the 1/5 favourite to win the Tour de France race row case TERRY TRIAL: Verdict carries EXPLAINED huge potential WHAT TERRY SAID All parties agree that John Terry said the following words repercussions during an exchange with Anton Ferdinand in the closing stages of Chelsea’s 1-0 defeat ANALYSIS at Loftus Road on 23 October BY FRANK DALLERES last year. THIS has been a trial unprecedented in its nature. One of the country’s – perhaps even one of the world’s – best known “F*** off, f*** off… sportsmen hauled before a “Yeah, yeah… criminal court over words uttered on a pitch. F****** black c***… Whatever the verdict this F****** knobhead” afternoon, football’s reputation has already taken a buffering with every four-letter word THE DISPUTE recited, yet the potential The case hinges on the repercussions of the decision intention behind Terry’s are much more grave and words, with two primary far-reaching. explanations. Should Terry be cleared of The defence argues that using a racial insult towards 1 Terry thought Ferdinand QPR’s Anton Ferdinand, who was had shouted an accusation a reluctant witness, it is difficult along the lines of “did you call to see the claims affecting the me a black c***?” and was Chelsea captain’s worth to club repeating it back as a and country. Former world champion David Haye (left) yesterday weighed in at 210lbs; former British champion Dereck Chisora weighed 247lbs question, in the manner of But should he be found guilty, “f****** black c***?”, before Terry will find serious questions adding “f****** knobhead”. raised about his role as skipper, The prosecution argues his future at his childhood club 2 that Terry’s words were and indeed his dream of one day Chisora: Anger towards Haye the latest in a series of insults managing the team. An FA probe the pair were exchanging at will also be resumed. that moment, and were The maximum fine of £2,500 uttered because Terry became might not bother a player angered at Ferdinand taunting earning 60 times that every week, has been simmering for a year him over an alleged affair. but the damage to his reputation would pose a far bigger threat to EXCLUSIVE Given that Chisora possesses that future earnings from sponsors. BY DECLAN WARRINGTON particular belief, it would only be THE THIRD WAY Chelsea would be placed in a natural that the prospect of facing a The defence yesterday hugely difficult position, with BRITISH heavyweight Dereck Chisora fighter as illustrious as two-weight BIG FIGHT advanced an alternative immense pressure likely to be has revealed that his bitter rivalry world champion Haye comes with explanation: that Terry forthcoming from almost every with David Haye began well before a certain apprehension but he VERDICT misunderstood Ferdinand’s angle to throw the book at and their February press conference regardless remains confident in verbal volley, wrongly sack a player now synonymous brawl and that he has not yet his ability and believes it is Haye, interpreting “Bridge” with the club. forgiven him for the cancellation of and not he, who should be DECLAN WARRINGTON as “black”. Terry’s Chelsea The landscape of football itself his fight with world champion concerned about their fight in east IN Dereck Chisora, David Haye faces an team-mate Ashley Cole said in might itself also be upset, with a Wladimir Klitschko. London tomorrow. opponent as game and hungry as any his testimony on Wednesday guilty verdict opening the door Chisora was last year scheduled to “Haye don’t like to get hit,” adds throughout his career, but it’s still difficult that he believed Ferdinand for other players to level similar challenge Klitschko in Germany on Zimbabwe-born Chisora, for whom to look beyond a victory for the favourite. had shouted one of accusations with a reasonable 30 April before withdrawing respect greatly grew after giving At his best, Haye is a cagey, the two words at Terry, but expectation it will end up, like because of an abdominal injury WBC champion Vitali Klitschko his exceptionally quick and highly polished could not detect which. Terry, in court. amid growing speculation that he toughest fight since losing to fighter. Chisora’s greatest chance comes in was in talks with Haye over a British great Lennox Lewis in 2003. working on the inside and forcing Haye to 2 July showdown. “[But] I’m not going to get in no fight at a higher pace. Talk of the latter’s That Haye had claimed a fight one’s head. He knows I’m already in lack of punch resistance has foundation, IN BRIEF would only be possible on that date if his head. He knows what I’m about but ‘Del Boy’ has yet to prove himself a RESULTS Klitschko’s fight with Chisora was and I’m going to catch the fool. concussive puncher. Greene finetunes for London 2012 cancelled – “[Klitschko’s] chosen to “We’re [Chisora and trainer Don Regardless, Haye’s greatest strengths fight someone else which effectively Charles] just chilled out, man. We’re n ATHLETICS: Team GB captain and include his footwork, head movement and means it is impossible for our fight to Africans, we don’t really moan a lot, reflexes. Though Chisora is equipped with 400m world champion Dai Greene will happen on 2nd July” – has never been we’re just going to do what we have an impressive engine, and an admirable be among those stepping up their forgotten by the latter, particularly to do and see this guy on the 14th. heart and chin, his biggest struggle will London 2012 preparations by competing given that Haye replaced Chisora as “Just watch the fight, you’re come when attempting to engage Haye in in the Aviva London Grand Prix at Klitschko’s opponent. Perhaps more going to love it.” a fight and he could fail to do so. Crystal Palace tonight and tomorrow. than anything it is that, the former David Haye fights Dereck Chisora at Haye will fight on the back foot. If he British champion admits, that Upton Park tomorrow. Watch live on goes for a knockout, this could be over in Premier League deal extended fuelled the considerable anger BoxNation (Sky Ch. 456/Virgin Ch. 546) less than eight rounds. If not, a points win, n displayed in their violent and join at boxnation.com albeit a testing one, will be the outcome. FOOTBALL: Barclays has extended its confrontation in February. £40m per season title sponsorship of CYCLING TOUR DE FRANCE—Stage 11 (Albertville - “After the fight got cancelled, and the Premier League for a further three David Haye took the fight and started years, until the end of the 2015-16 talking trash, I didn’t like him, so I TALE OF THE TAPE season. was like when I see him, we’ll have to Haye Chisora sort it out,” said Chisora. Age Molinari takes Scottish Open lead “[Then] after that [press 31 28 Age Record 24-2 (23KO) 15-3 (9KO) n conference] situation we knew we Record GOLF: Italy’s Francesco Molinari shot GOLF had to get this fight on. I said ‘Get it Height (Castle Stuart Golf 6ft 3ins 6ft 1.5ins Height a course record 62 to finish on 10 under THE SCOTTISH OPEN on, I want it on’. It was going to be Reach par and seize the lead at the Scottish 1st rnd (Gbr & Irl unless stated, par 72): 78ins 74ins Reach 64 A Canizares (Spa), 65 S Kjeldsen (Den), very difficult but all good things Weight 210lbs 247lbs Weight Open. R Jacquelin (Fra). are very difficult.” CONGRATULATIONS FROM STANDARD CHARTERED BANK

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