BUSINESS WITH PERSONALITY HOW TO BECOME A TRAVEL TOURING GREAT ENTREPRENEUR AMERICA’S WILD WEST IN OUR SIX POINT GUIDE P29 STYLE P30 Issue 1,525 Monday 5 December 2011 www.cityam.com FREE Life science CALLS FOR PM TO firms to get £180m fund

▲ POLITICS PROTECT THE CITY BY DAVID CROW DAVID Cameron will today unveil a ▲ POLITICS new £180m fund to help firms in the BY TIM WALLACE life science sector bring their prod- ucts to market more quickly, as part A RECORD 49 new EU regulations are of a new strategy designed to boost about to hit the City, prompting calls Britain’s biomedical industry. from industry groups, think-tanks and The Prime Minister hopes the fund Tory MPs for David Cameron to do will help bridge the so-called “valley more to protect British interests at a of death” – the period between when European level. a firm conceives a new drug or med- A tidal wave of rules, covering areas ical technology and the moment at from derivatives trading to the loca- which the market is ready to invest tion of clearing houses and short-sell- in it. ing to insurance, will hit the UK The government says that private disproportionately hard, think tank investors want to see evidence that Open Europe warns today in a compre- products will work in humans – hensive report underlining the creep rather than laboratory animals – of European financial legislation. meaning that some of the best inno- John Redwood, the influential vations never see the light of day. Conservative MP, told City A.M. the Cameron is expected to say: “I “onslaught of regulation” would dam- want the great discoveries of the next age the UK and warned there could be decade happening in British labs, the a Tory rebellion if David Cameron does new technologies born in British not do more to fight for Britain. start-ups.” As the City contributed £53.5bn in Small and medium-sized life sci- tax in 2009-10 – around 11 per cent of David Cameron could face a backbench rebellion if he does not do more to fight anti-City regulation in Brussels Picture: REUTERS ence firms will be able to apply to the total revenues – and generated a sub- so-called Biomedical Catalyst Fund, stantial trade surplus, Open Europe and we need an opt-out to protect Luke Johnson, chairman of Risk Meanwhile, Iain Duncan Smith, the as will some university departments. argues it is vital that the UK govern- them,” he said. Capital Partners, said Europe’s pro- work and pensions secretary, has Meanwhile, Cameron is expected ment has a larger say in any new regu- “The government should not try to posed financial transaction tax was called on the Prime Minister to hold a to announce a new early access lation. postpone a renegotiation. Other coun- “particularly damaging” . referendum on plans for greater fiscal scheme for seriously ill patients, “Cameron would be right to use EU tries need us to pass changes, so it is He added: “This is a good chance to union in the Eurozone, it is under- which would see them get access to treaty changes to ask for an emergency time to use our leverage and say the stop these populist, xenophobic pro- stood. new drugs a year before they are fully brake to halt regulation that could relationship doesn’t work any more.” posals before they fully take hold.” The former Tory leader and a stan- licensed. And he will announce plans harm financial services and the wider Redwood believes a majority of The City of London Corporation also dard-bearer for the right of the party to share patients’ NHS records with economy,” said Open Europe. Conservative backbenchers agree with warned against protectionism and said that any “major treaty change”, private health companies, in a bid to Redwood added: “It is vital to protect him, threatening Cameron’s leader- said the financial transaction tax such as the one being devised by encourage greater co-operation financial services. They are a valuable ship if he fails to use this opportunity would cost hundreds of thousands of France and Germany, should be put to between the public and private sec- asset in terms of jobs and tax revenue, to support British interests. UK jobs. a public vote. tors.

Certified Distribution FTSE 100 ▲5,552.29 +62.95 DOW ▼12,019.42 -0.61 NASDAQ ▲2,626.93 +0.73 £/$ 1.56 ▼-0.01 £/¤ 1.16 ▼-0.01 ¤/$ ▼1.34 -0.01 03/10/11 till 30/10/11 is 100,123 2 News CITYA.M. 5 DECEMBER 2011 Central bank independence won’t last NEWS | IN BRIEF US denies Iran shot down drone Iranian media reported yesterday that their country’s military had shot down a ageable in a democracy when it was implicit subsidy is involved. Combined ing excessive monetary creation (and US reconnaissance drone in eastern Iran, confined to targeting consumer with QE, central banks are now oper- its corollary, credit). But central banks but a US official said there was no indica- prices, as it was pre-2008 – the finan- ating a quasi-fiscal policy. No wonder whose job it is to micro-manage the tion the aircraft had been shot down. cial policy committee will be far more pressure for repoliticisation is mount- financial system or who – like the NATO’s US-led mission in Afghanistan said controversial from the start. Already, ing, especially in the US and EU. Bank did in October – bought £16.9bn the Iranian report could refer to an the government is inventing polices Bordo and James don’t pull any in gilts at a time when the govern- unarmed US spy drone that went missing (such as credit easing or subsidies for punches. They worry politicians see ment issued £17bn, monetising the last week. The incident comes as Tehran 95 per cent mortgages) to counteract monetary policy as a free lunch and entire deficit, cannot remain inde- tries to contain outrage at the storming of EDITOR’S LETTER the tightening of its own regulators. increasingly wish to be able to influ- pendent. the British embassy on Tuesday, after As a paper from the Politeia think- ence to whom credit is allocated (to If anything, today’s problem is even London announced sanctions on Iran’s ALLISTER HEATH tank by Michael Bordo of Rutgers and their constituents, rather than more greater than that: it is clear from the central bank in connection with Iran’s Harold James of Princeton points out, globally). Bordo and James compare global government debt crisis that fiat nuclear enrichment programme. SLOWLY but surely, the case for cen- the intellectual shift towards central this to the interwar period when trade money – currencies entirely detached MORE: 20 tral bank independence is being bank independence over the past cou- policy became nationalised, with dis- from any commodity or anchor and undone. It may not look like it, with ple of decades was based on the view astrous consequences. produced entirely at the discretion of Bondholder losses may be eased central bankers being afforded even that their mission was to pursue a My own view is that it never made government agencies – has failed. Its Germany is prepared to soften language in greater powers than before the reces- simple rule: minimise consumer price sense for central banks to focus on adoption has abolished all restraints the Eurozone's permanent bailout mecha- sion, but we are probably at the high inflation. The problem is that this is consumer price inflation – this obses- on governments and has meant that nism compelling bondholders to accept watermark of their influence and no longer what they are being asked sion is what triggered the bubbles. currencies keep being devalued and losses in exchange for much stricter budg- autonomy. At some stage, as it to do. Discretion is back, central banks One could still have independent cen- inflated away. Eventually, we will need et rules, sources have said. The shift would becomes clear that monetary policy are once again taking over financial tral banks tasked with a more com- a new monetary system more in tune not completely remove the possibility of has turned into fiscal policy, and regulation and monetary stability is plex set of rules, aiming at controlling with the principles of capitalism and private bondholders having to accept loss- when the full extent of the macro-pru- much less of a political priority. the growth rate of total liquidity in sound money – until then, expect ten- es in the future, but it would align the dential powers that have been granted Central banks now have to make the economy. Such rules could have sions between central bankers and statutes of the European Stability to officials become apparent, there choices about what types of securities prevented the bubble, which was at its governments to rise and rise. Mechanism more closely with IMF rules, will be a backlash. The independent to take into their portfolio; when core a simple, old-fashioned case of [email protected] creating a more-level playing field for pri- monetary policy committee was man- there is a possibility of a loss, an central banks allowing or encourag- Follow me on Twitter: @allisterheath vate buyers of Eurozone sovereign debt.

4th Floor, 33 Queen Street, London, EC4R 1BR Tel: 020 3201 8900 Fax: 020 7283 5334 City vacancies Email: [email protected] www.cityam.com Editorial Editor Allister Heath Deputy Editor David Hellier News Editor David Crow tumble again Acting Night Editor Marion Dakers Business Features Editor Marc Sidwell Lifestyle Editor Zoe Strimpel ▲ RECRUITMENT were created in November, compared Sports Editor Frank Dalleres BY THOMAS MCMAHON to 3,160 in October. Nick Clegg said the coalition would get “tough” on executive pay Picture: Laura Lean / CITY A.M. Art Director Jo Simpson The fall continues a trend from the Pictures Alice Hepple CITY vacancies shrank by 16 per cent previous month, with October’s figure in November, with candidates facing 18 per cent down from September’s. Commercial the toughest competition for years. However, the City figures buck a Jeremy Slattery Clegg targets CEO pay Sales Director There are now five qualified candi- more positive trend across the rest of Commercial Director Harry Owen dates for every available post, accord- the UK, according to recruitment Head of Distribution Nick Owen ing to figures published by financial group Reed’s latest job index. services recruitment firm Astbury The company’s benchmark index ▲ POLITICS remuneration committees. Distribution helpline Marsden today. rose four points to 133 in November to “We now need to get tough on... If you have any comments about the distribution BY DAVID CROW of City A.M. Please ring 0207 015 1230, or email The firm said the ratio of candidates reach its highest level in 23 months, remuneration of executives in the pri- [email protected] to vacancies is at its highest since with employer demand for new staff NICK Clegg, the deputy Prime vate sector,” Clegg said. December 2008, compared to at the 20 per cent higher than the same time Minister, yesterday said the govern- However, he insisted that the gov- Editorial Statement start of this year when there were just last year. ment was prepared to introduce new ernment had no intention of “setting This newspaper adheres to the system of 1.7 candidates per job. legislation that could force listed pay” at publicly-listed firms. self-regulation overseen by the Press Complaints Mark Cameron, operations chief at Competition for City firms to change the way they deter- Employers’ organisation the CBI Commission. The PCC takes complaints about the Astbury Marsden said: “For those City jobs is fierce, with five mine pay awards for top executives. has said top pay should be more close- editorial content of publications under the Editor’s staff who are looking for a new job it Clegg said the government would ly linked to performance, although it Code of Practice, a copy of which can be found at candidates for every www.pcc.org.uk means they are being pitted against publish a set of proposals in January, has called on the government to vacancy compared to Printed by Newsfax International, more intense competition then they adding it was willing to introduce enforce any new rules using a “com- Beam Reach 5 Business Park, may have faced for years.” 1.7 earlier this year new laws that could force firms to ply or explain” code rather than pass- Marsh Way, Rainham, Essex, RM13 8RS The firm estimates that 2,670 jobs put a rank-and-file employee on their ing new laws. WHAT THE OTHER PAPERS SAY THIS MORNING

multinationals. UK BANKS FACE HIGHER FINANCING SURGE IN UK CORPORATE BONDS COSTS BLOOMBERG’S TEMPLE IN THE HEART OF PLEA BARGAINING FOR FINANCIAL GM WORKS ON FIX FOR VOLT BATTERY Sterling corporate bond issuance is Banks face paying more to raise THE CITY CRIME SET TO COME INTO LAW EARLY General Motors is working on a fix to soaring, but euro-denominated bond finance in traditional bond markets – The financial media organisation NEXT YEAR the battery of its Chevrolet Volt that sales are at a six-year low – as more and some will continue to be locked wants to erect one of the City’s most Plea bargaining to settle serious finan- would eliminate the risk of a post- companies turn to the relative stabili- out completely – as a growing significant buildings within yards of cial crimes could be introduced as crash fire and could be retrofitted ty of the London market amid demand for collateral from other the Bank of England on a site it has early as next year according to politi- onto existing vehicles, people famil- Europe’s financial turmoil. UK and lenders is undermining the strength called Bloomberg Square. The pro- cians and leading legal experts. iar with the situation said yesterday. international companies have sold of their balance sheets, the Bank of posed scheme is in an archaeological- Research by The Daily Telegraph has The people familiar stopped short of more than $42bn worth of sterling- England has warned. The UK central ly rich area of the City and will be shown leading City law firms and saying GM plans to recall existing denominated bonds so far this year. bank said that the issue of secured home to a reconstructed Temple of Government Ministers are looking at Volts, but such a move likely would be lending to banks is of growing con- Mithras, which was uncovered at the new rules on deferred prosecution necessary to repair cars already on EU EYES BIG FINES FOR PRIVACY cern to regulators and markets. site in 1954. agreements to be introduced in the the road. BREACHES next session of Parliament in May. Businesses breaching European ANGLO CHIEF UNDER PRESSURE OVER BARCLAY BROTHERS PLAN HOTEL COUP ALTRIA ANNOUNCES QUARTERLY Union privacy rules will face fines of CHILE FIGHT THROUGH RIGHTS ISSUE BOMBARDIER PLANT IN DERBY COULD BE CHARGE OF $119M up to five per cent of their global Cynthia Carroll, chief executive of The Barclay brothers are poised to SAVED BY STATE TRAIN AID Altria Group will record $119m in turnover under sweeping proposals Anglo American, is under pressure to make a cash injection of about The taxpayer could end up meeting fourth-quarter charges stemming to be unveiled next month. In the resolve a row in Chile or risk the £130m into the Maybourne Hotel almost a third of the cost of a £250m from two long-running lawsuits. The first significant update of data protec- wrath of a significant number of lead- Group as part of their campaign to contract designed to save the company’s Philip Morris USA unit tion legislation since 1995, compa- ing shareholders, who will demand win outright control of the Claridge’s Bombardier trainmaking plant. will record a $62m pre-tax charge in nies found to have mishandled any changes at the top of the mining and Connaught operator. Sir David Provision has been made for the the quarter related to two judgments personal data they hold will face the group unless the dispute is settled and Sir Frederick will put a proposal Government to contribute £80m in tobacco cases and will incur highest levels of fines, which could quickly, according to people familiar to this week’s board meeting to raise towards the cost of 130 new carriages approximately $57m in interest costs extend to billions of euros for large with the situation. £200m of new equity. on the London to Brighton line. related to the cases. CITYA.M. 5 DECEMBER 2011 News 3 Monti’s marvellous medicine ▲ ITALY ECONOMY income tax on the rich will be hiked the seven per cent danger zone that As part of Monti’s reforms: BY TIM WALLACE and a wealth tax on assets and proper- tipped others into bailout territory. •Income tax will be hiked, largely tar- ty is also to be implemented. Monti was appointed Prime geted at higher earners; TOUGH tax hikes and spending cuts Unions hit out at the plans, claim- Minister to get to grips with the budg- •A new wealth tax will target proper- were announced last night as Italy’s ing they hit poorer workers and pen- et and restore market confidence, ty and other assets; technocratic Prime Minister unveiled sioners disproportionately hard. after elected politicians failed to tackle •To be entitled to a state pension, his plan to get the country’s colossal However, the government has little the country’s deficit. Should Italy workers will have to contribute for a debts back under control. choice as Italy’s national debt stands at require a bailout, it may well over- minimum of 41 years for women and The €20bn (£17.2bn) fiscal package €1.8 trillion or 120 per cent of GDP. whelm existing provisions for saving 42 for men – up from 40 currently; was presented after a cabinet meeting. Ten-year bonds finished last week with indebted countries, and would bring • Inflation indexing on pensions will Monti plans tax rises Picture: REUTERS The retirement age is set to rise, a yield of nearly 6.7 per cent, close to the Eurozone crisis to new heights. be cut back. EU summit Belgian PM crucial for elected after euro rescue record wait ▲ EUROZONE ECONOMY ▲ BELGIAN ECONOMY BY HARRY BANKS BY TIM WALLACE THE euro faces a decisive week as AFTER a record 588 day wait, Belgium European Union leaders, urged on at last has a new Prime Minister – anxiously by the US, seek agreement Socialist leader Elio Di Rupo. on a convincing rescue plan that has The Francophone leader heads a eluded them for two years. six-party coalition and faces major Despite short-term market opti- economic and social challenges. mism about a possible deal to tackle Europe’s sovereign debt crisis Europe’s sovereign debt crisis and THERE ARE STORIES THAT DESERVE TO BE CAPTURED FOREVER. appears to have spread to the former- underpin the survival of the single ly-safe core nation, as 10-year bond currency, the outcome is far from yields hit record highs of 5.875 per certain as the EU gears up for a sum- cent on 25 November, though they mit in Brussels on Thursday and have since declined. Friday. The government has debts of “This week, the stable future of almost 100 per cent of GDP, and was the euro and thus the economic downgraded by ratings agency recovery in Europe and employment Standard and Poor’s last month. are at stake,” said EU Economic and Part of the coalition agreement is Monetary Affairs Commissioner Olli to cut the budget deficit to 2.8 per Rehn. “This calls for a convincing cent of GDP in 2012, package of measures from the Predecessor Yves Leterme’s govern- European Council (summit).” ment fell after the Flemish liberal Portuguese Prime Minister Pedro party withdrew from his five-party Passos Coelho went further. coalition as a result of a row over elec- “We have to find a response” to tion boundaries around Brussels. the crisis, he told the daily Publico. Flemish and French-speaking par- “If we don’t, clearly that could repre- ties disagree frequently, and the sent the end of the European threat of disintegration hangs over Union.” the country – another core challenge If all goes according to plans for Di Rupo to manage. being hatched in Berlin and Paris, the EU will have taken a step towards fiscal union by Friday night, Whether it’s a transatlantic crossing on a sailboat with friends, or the birth of agreeing on a treaty change to a child, there are precious, life-changing moments that deserve to be recorded anchor coercive budget discipline forever. What will yours be? Let our engraving, enamelling and gemsetting artists immortalise your legend. A Reverso just for you. for the 17-nation currency area. GRANDE REVERSO ULTRA THIN. Jaeger-LeCoultre Calibre 822. Patent 111/398. The European Central Bank will have cut interest rates on Thursday YOU DESERVE A REAL WATCH. to counter a looming recession and taken new measures to provide longer-term funding for Europe’s London Boutique teetering banks. And new prime ministers in Italy, 1A Old Bond Street Greece and Spain will have demon- W1S 4PA Mayfair, London strated their commitment to tough (0)20 7491 6970 austerity measures and structural www.jaeger-lecoultre.com economic reforms to tackle their debt problems and restore investor confidence. New PM Di Rupo Picture: REUTERS FSA chief agrees to meet Occupy activists More austerity in Ireland ▲ POLITICS series of events on finance and ethics side St Paul’s Cathedral, inspired by ▲ EUROZONE and would need to cut €2.2bn from initiated by Dr Richard Chartres, the Occupy Wall Street. spending, and raise €1.6bn in extra BY PETER EDWARDS Bishop of London. It comes after a US federal judge on IRISH Prime Minister Enda Kenny set taxes, to rein in the deficit to three per PROTESTERS from Occupy London Dr Chartres and Ken Costa, the for- Friday issued a temporary restraining out a raft of tough new austerity meas- cent of GDP by 2015. have won a meeting with Hector mer Lazard International chairman order to block Oklahoma City from ures in his Budget address yesterday, “This problem will not be fixed Sants, the chief executive of the who is now advising the Church of forcibly ousting Occupy protesters pledging to cut spending and raise unless we take action to bridge this Financial Services Authority. England on ethics and the City, will from a downtown park where they taxes to bring down the nation’s huge gap,” he said. “This budget will be Members of the group are due to also take part in the private session. have bought daily permits to stay debt. tough – it has to be.” meet Sants at St Ethelburga’s Tent, at Meanwhile the protesters said they after hours. Setting out the “challenge” of restor- Belt-tightening measures include a the Centre for Reconciliation and plan to hold an “Occupy Everywhere” Protesters argue they have a consti- ing Ireland’s economy, Kenny said the two percentage point increase in VAT, Peace, on Bishopsgate on Wednesday. event on 15 December to mark two tutional right to assemble peacefully government was still spending €16bn to 23 per cent, and further cuts to the It is part of London Connection, a months since they set up camp out- in the park all day and night. (£13.7bn) per year more than it raised education and welfare budgets.

CITYA.M. 5 DECEMBER 2011 News 5

Retailers such as Woolworths collapsed in 2008 High street trade is Picture: REUTERS worst since 2008

▲ RETAIL cent in the same period in 2008, which saw Woolworths and Zavvi BY LAUREN DAVIDSON wave farewell to the high street. HIGH street trading is in a worse state The ten bleak-prospected retailers today than it was in the tumultuous include Mothercare, Thorntons, and period after Lehman Brothers French Connection, said E&Y. declared bankruptcy three years ago, Alan Hudson, head of E&Y’s restruc- an Ernst & Young report has revealed. turing practice, was not confident of Eighteen per cent of general retail- prospects improving in the new year. ers, excluding food and drug vendors, He said, “The walking wounded left have issued profit warnings since the behind will struggle to survive with beginning of October, up from 14 per rising costs and pressure.” Social media to help Cyber Monday grow

▲ CONSUMER advice and to share information and opinions. BY LAUREN DAVIDSON “The current economic climate is TODAY’S Cyber Monday is set to be the accelerating the rate at which con- year’s busiest online Christmas shop- sumers are adopting digital behav- ping day, beating last year by 15 per iours as they rebalance their spending cent, with retail websites expected to and turn to digital solutions to seek receive 85m hits as the festive frenzy out savings and value.” picks up pace. While the ever-increasing domi- Encouraged by the nearing big day nance of social media is expected to and last week’s November pay packet, cost the consumer more, with multi- while leaving enough time for parcel channel consumers spending £143 per deliveries, Brits will today tot up a transaction compared with £102 for hefty portion of the 350m hours they direct shoppers and £57 for in-store are expected to clock up shopping customers, it could also lead to a high- online this month. er gift success rate. A Deloitte report estimates that Last year an estimated £650m worth £9bn will be spent online this holiday of unwanted Christmas presents were season, accounting for half of all non- listed on eBay by 500,000 unhappy food related merchandise retail sales. recipients within days of being Of this, 20 per cent will be multi- exchanged. However, Anton Gething, channel, where consumers use more co-founder of social commerce expert than one channel in making their pur- nToklo, believes social media “could chase, including smartphone apps, make for higher customer approval price comparison websites, review and retention rates, while also making forums and social media. the consumer experience more fun Our Rate: Economy. Colin Jeffrey, head of multichannel and a little less stressful”. retail at Deloitte, said, “With trust in “This could be a Christmas win for traditional sources of influence the often maligned retail industry, as Your Mood: First-Class. decreasing, consumers are turning to well as gift givers and receivers across their peers or communities online for the UK.” 50 O Comfy bed £ 42 O Free hot breakfast  John Lewis sales Ocado running from/night* O Free high-speed internet access O Earn Hilton HHonors points and airline miles up almost 10pc late more often O 100% satisfaction guarantee ▲ ▲ RETAIL RETAIL hamptonbyhilton.co.uk JOHN Lewis, Britain’s biggest depart- ONLINE grocer Ocado has seen the ment store group, said sales rose 9.6 punctuality of its deliveries slip in the 00800 42678667 per cent last week, with the increase face of increasing demand. flattered by snow disruption a year The listed company, which sells << Scan this code for more information. ago. Waitrose goods, is understood to have The employee-owned group, seen as delivered 90-95 per cent of its shop- a retail bellwether, said yesterday ping early or on time in the past three department store sales rose to months, compared to an average £113.6m in the week to 3 December. punctuality rate of 95.5 per cent in Hampton by Hilton locations in the UK: Birmingham, Braintree, Corby, “While the figures were flattered the three months to 7 August. Derby, Liverpool (2 hotels), Newport and Shrewsbury. Coming soon: Croydon by the snow which caused disruption Ocado, which admits it is facing to trade this time last year, sales were capacity problems at its Hatfield dis- up 10.9 per cent on the same week tribution centre during busy periods, * Subject to availability at participating locations. Offer valid Friday–Sunday nights 1 September 2011 through 15 January 2012. Rates listed are in Pounds per room, per night based upon single/double occupancy and excludes applicable fees, taxes, gratuities and incidental charges. Book 14 days in advance. Non- two years ago, indicating a robust said it 90 per cent plus punctuality refundable full payment required at booking. Discount relates to Best Available Rate which is a specific rate type that varies depending on time of purchase, underlying trading performance,” rate still beats the average supermar- is unrestricted, non-qualified and excludes discount rates. Other restrictions may apply. See HamptonbyHilton.co.uk for details. © 2011 Hilton Worldwide John Lewis said. ket punctuality rate of 80 per cent. ZĂƚĞ^ĞƩĞƌ 6 News CITYA.M. 5 DECEMBER 2011 A POLICEMAN is DĂƌŬĞƚhƉĚĂƚĞ engulfed in flames after he was hit by ZĂƚĞ^ĞƩĞƌǀĞƌĂŐĞ>ĞŶĚŝŶŐZĂƚĞƐ͖ a petrol bomb ϮϱͬϭϭͬϮϬϭϭͲϬϭͬϭϮͬϮϬϭϭ thrown by protest- ers during clashes near the parlia- ment building in Syntagma square % % in Athens. Crowds ϰ͘ϰ ϲ͘ϳ gathered in the DŽŶƚŚůLJĐĐĞƐƐ ϯzĞĂƌ/ŶĐŽŵĞ square over the weekend to protest against the latest ZĂƚĞ^ĞƩĞƌŝƐĂƉĞĞƌƚŽƉĞĞƌĮŶĂŶĐĞĐŽŵƉĂŶLJ͕ round of Greek aus- ŵĂƚĐŚŝŶŐĐƌĞĚŝƚǁŽƌƚŚLJŽƌƌŽǁĞƌƐǁŝƚŚ^ĂǀĞƌƐ͘ terity plans, as ůůƌĂƚĞƐĂƌĞƉƌŽƚĞĐƚĞĚďLJZĂƚĞ^ĞƩĞƌWƌŽǀŝƐŝŽŶ&ƵŶĚ͘ Prime Minister ZĂƚĞƐƋƵŽƚĞĚĂƌĞĂǀĞƌĂŐĞƌĂƚĞƐĂĐŚŝĞǀĞĚďĞƚǁĞĞŶ Lucas Papademos ϮϱͬϭϭͬϮϬϭϭĂŶĚϬϭͬϭϮͬϮϬϭϭĂŶĚĂƌĞŶĞƚŽĨĂůůĨĞĞƐ͘ insisted he would press ahead with planned spending cuts. Picture: REUTERS Volatility will continue for firms in 2012

▲ GLOBAL ECONOMY to subside, as tensions aggravated by BY ELIZABETH FOURNIER austerity programmes and political unrest intensify. GLOBAL businesses face increasing Tunisia, Egypt and Libya in particu- volatility in 2012, as weak economic lar begin 2012 facing highly contested performance and declining prosperi- futures, while ongoing protests in ty continue to aggravate tension and Syria and Yemen could escalate into increase scrutiny on corporate prac- more violent situations. tices. Despite the long list of threats, With growth prospects hampered Control Risks has also identified sev- by ongoing debt and political crises eral countries that offer the best across the world and social unrest opportunities for investment in the likely to continue as food and fuel coming year, including Bulgaria and costs increase, international business- Libya. es will face unprecedented challenges The latter is seen as a source of to remain viable, according to the lat- financing for wide-ranging recon- est RiskMap analysis from business struction through sovereign wealth risk consultancy Control Risks. fund and oil revenues, while the for- They will also come under increas- mer is feted for its low budget deficit ing pressure to be transparent and and strong links to the EU. accountable, as public hostility and Colombia, Mozambique and Sri financial pressures throw a spotlight Lanka are also seen as key countries onto corporate procedures. for investors to monitor, offering new “The one indisputable lesson from opportunities for development in 2011 is that planning for low-proba- regions ripe for long-term invest- bility but high-impact events must be ment. part of any strategic forecast,” said Despite an expectation that export- Richard Fenning, chief executive of heavy economies in Asia will suffer Control Risks. from turmoil in Western markets, The research also suggest that the 2012 will see Asia’s role as the engine growing wave of social protest that of global economic growth continue, has swept certain regions is unlikely according to the report. Blow to Putin as exit polls show support for United Russia falling

▲ POLITICS which the pollster projected would give the party just 220 of the 450 TWO exit polls have shown that State Duma seats, far below the 315 Russian Prime Minister Vladimir seats it won in the last election in Putin’s ruling party suffered a big 2007. decline in support in a parliamen- If confirmed, the result is a consid- tary election yesterday, winning less erable blow to Putin because the than half of votes cast. election was widely seen as a test of According to the poll from state his personal authority before his pollster VTsIOM, Putin’s United planned return to the presidency Russia party won 48.5 per cent of the next year. vote followed by the Communists “We are watching and hope that with 19.8 per cent, LDPR with 11.4 we shall get a majority of the man- per cent and Just Russia with 12.8 dates in the Duma,” Boris Gryzlov, per cent. head of the party’s supreme council, An exit poll by FOM shown on told reporters. “We can say that state television showed United United Russia remains the ruling Russia won 46 per cent, a result party.”

8 News CITYA.M. 5 DECEMBER 2011

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In partnership with SIM Only for .50 In association with PoliticsHome.com £10 a month Apply to join today at www.cityam.com/panel Switch to a network you can depend on Will Osborne’s Autumn Statement boost growth? 1 City says Osborne’s Autumn 24 Somewhat confident 5 19 Neither confident nor sceptical Statement won’t boost GDP Somewhat sceptical Add % Very sceptical 33 Very confident 100MB ▲ UK mobile POLITICS “very confident”. 23 Don’t know BY DAVID CROW The most popular measure internet for was a decision to cap public sec- £2.50 THE policies unveiled in George tor pay rises at one per cent How favourable are you to George Osborne’s Autumn Statement? or Osborne’s Autumn Statement from 2013, with 83 per cent of are unlikely to boost growth, panellists saying they were 70.00 % Very favourable Double your according to the City A.M. / favourable to the policy. 60.00 minutes for PoliticsHome.com Voice of the The least popular measure 50.00 Somewhat favourable £5 a month City panel. was Osborne’s decision to freeze 40.00 Neither favourable Some fifty-seven per cent of capital gains tax exemptions, 30.00 panellists said they were “scepti- which had been expected to rise nor unfavourable 20.00 cal” that the measures would in line with inflation. Twenty- Somewhat unfavourable 10.00 boost growth, compared to 19 five per cent said they were Very unfavourable per cent who said they were “unfavourable to this policy”, 10.00 Capping public Tax breaks 5bn for Freezing capital “somewhat confident” and just although a similar amount said sector pay for individuals infrastructure gains tax Don’t know rises at 1 % who invest investment exemptions one per cent who said they were they were “favourable”. in 2013 in start ups Free SIM on a great value 12-month plan

.50 Price on a 12-month contract £10 a month Duncan Smith admits hike in IEA: Plan B would result in Mins to all UK mobiles & UK landlines 300 (starting 01, 02, 03) mins benefits will discourage work extra debts but no growth Standard UK texts 3000 ▲ texts POLITICS September’s CPI figure of 5.2 per ▲ UK ECONOMY “With much higher levels of BY DAVID CROW cent. BY TIM WALLACE government borrowing, there is He said: “Work will still pay no realistic possibility of such a IAIN Duncan Smith, the welfare better than benefits on the bal- MORE government spending positive outcome today,” the Call 08080 99 00 00 secretary, yesterday admitted ance of things but the differen- would create extra government report warns. that the Treasury had discour- tial has been slightly reduced by debt and not more growth, The report’s modelling indi- Search online for ‘Vodafone press’ aged people from working, after that, we recognise that.” according to research published cates more spending in the 1930s or go in store today it increased out-of-work benefits However, the welfare secre- today by the Institute for would have had little impact. in line with inflation while freez- tary insisted that the disincen- Economic Affairs. “State spending currently Lines open 7 days a week, 8am-8pm, except bank holidays. ing various tax credits for those tive would be removed Comparisons to the Great accounts for over half of our in employment. when he introduces a Depression are ill-founded, the national income and our budget Terms apply. Subject to credit check. Call us free on your landline; standard network charges apply to all calls made from a mobile phone. Duncan Smith’s comments new Universal Credit in report argues, as current levels of deficit sits at £165bn – to suggest came after George Osborne 2013. government spending are now far that our economic woes can be used his Autumn Statement Liam Byrne, the shadow higher than in the 1930s meaning solved by further borrowing is to freeze the working welfare secretary, said “looser fiscal policy would have wrong,” said Professor Phillip @ tax credit and to can- the government had even less effect today”. Booth from the IEA. @ cel plans to hike the broken “the cardi- The report claims that growth “With a sovereign debt crisis child tax credit, nal rule of welfare took off four years into the currently raging, the government MORE NEWS while increasing reform – that work Depression, and full capacity was must hold the course on fiscal ONLINE AT out-of-work bene- should always reached within another four, all austerity and be far bolder with www.cityam.com fits in line with pay”. during a period of fiscal austerity. supply-side reform.”

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NEWS | IN BRIEF

Daniels’ bonus could be slashed Goodwin set Lloyds Banking Group could withhold up to half the 2010 bonus awarded to for- mer chief executive Eric Daniels. Lawyers for Lloyds’ remuneration com- mittee have told Daniels and other sen- ior executives that the bank plans to to be spared withhold some of the bonuses announced in February. The “claw back” comes after Lloyds made a £3.2bn provi- sion against complaints relating to the mis-selling of payment protection insur- ance. The taxpayer-backed bank said in FSA report “the implications on compensation are being considered by the remuneration committee and will be determined by ▲ BANKING banks, as major contributors to why the board in due course, in line with the BY PETER EDWARDS RBS needed a £45bn taxpayer bailout FSA code on compensation”. and billions more in state-backed THE City regulator’s report into the loans. A “let-off” for Goodwin, howev- SFO boss calls for prosecutions collapse of Royal Bank of Scotland is er, is likely to provoke the fury of MPs. Financial institutions and individuals set to spare Sir Fred Goodwin and Sir The FSA said it would not give a should be subject to criminal prosecu- Tom McKillop any detailed criticism “running commentary” in the run-up tion for the kind of "reckless" behaviour when it is published next week. to the report’s publication. RBS that contributed to the financial crisis, The results of the Financial declined to comment. the outgoing director of the Serious Services Authority probe, due to be Fraud Office told the Sunday Telegraph. published next Monday after a series ANALYSIS l RBS Richard Alderman said: "What I am of delays, are expected to avoid a full 22.00 21.63 thinking of is some kind of offence of p 2 Dec analysis of the work of the former 21.50 being involved with recklessly running or chief executive and chairman and to being involved in the running of a finan- focus on Johnny Cameron, the ex- 21.00 cial institution. We are thinking about head of investment banking, who has 20.50 banks, CDOs. I have been pushing this to been banned from any full-time work MPs.” Alderman bemoaned the fact that 20.00 in the City. under existing rules it is almost impossi- The report is also expected to high- 19.50 ble for the SFO to bring criminal charges light the global financial crisis and against an institution, unless it can prove the €71bn (then £49bn) takeover of a “directing mind” such as the chief ABN Amro, by RBS and two other 28 Nov 29 Nov 30 Nov 1 Dec 2 Dec Sir Fred Goodwin was vilified in the aftermath of the banking crisis Picture: REX executive was involved. JC Flowers eyes up £1.5bn of Australia’s UGL acquires deals for UK mortgage books DTZ Holdings for £77.5m ▲ PROPERTY of property valuation. DTZ was ranked top for valuations in China, and in the AUSTRALIAN engineering firm UGL top three in the UK and European mar- ▲ PRIVATE EQUITY the financial institutions group at in order to boost capital ratios because said overnight it had acquired all the kets. UGL also praised DTZ’s A$10bn Goldman Sachs, last month said he of tougher regulatory demands and trading operations of real estate servic- real estate assets under management. PRIVATE equity house JC Flowers has was keeping a “a lot of cash on hand” fears that a break-up of the euro es company DTZ Holdings for £77.5m. UGL managing director and chief built a £1.5bn cash pile to spend on to weather global market turmoil and would unleash a new round of tur- DTZ was placed into administration executive Richard Leupen said the deal British banks’ mortgage books after to stay ready for buyout opportunities. moil. in the UK immediately prior to the would be fully funded from new debt failing in its attempt to buy part of JC Flowers, which declined to com- Flowers’ investments over the global acquisition. facilities. Goldman Sachs was exclu- Northern Rock. ment, could buy assets worth hun- financial crisis have reduced the size In a statement, UGL said that, after sive advisor on the acquisition. The US buyout giant, which focuses dreds of millions of pounds and of his third $7bn (£4.49bn) fund and the buyout, it will have combined The deal appears a relative bargain on financial services, is believed to transfer them into OneSavings, the the group recently took a hit on the annual revenues of A$5.1bn (£3.4bn) for UGL, after another deal with Saint have changed its strategy after losing venture it formed when it put £50m MF Global Holdings crisis, after the and 53,000 workers in 43 countries. George Participations and BNP out to Virgin Money in the bidding into Kent Reliance Building Society. commodities broker filed for bank- It will also expand UGL’s reach into Paribas, that reportedly valued DTZ at war for the “good bank” of the Rock It has reportedly held discussions ruptcy protection. Asian markets, where DTZ has held a £162m, fell through due to Eurozone last month. with a number of banks already. The collapse of futures broker MF top position in property services. economic turmoil. Shares in DTZ fell Founder Christopher Flowers, once Britain’s high street lenders are Global cost New York-based Flowers DTZ, which was founded in the UK as low as 3p last week, having started a rising star of Wall Street in charge of looking to sell off books of mortgages nearly $50m. in 1784, will also boost UGL in the field the year worth 45p each. Irate tax payer? CITYA.M. 5 DECEMBER 2011 News 11 Zodiak circles Twilight vendor ADVISERS: JP MORGAN AND CREDIT SUISSE HARRY HAMPSON Bertelsmann on the sale of its sub- sidiary RTL Group’s Channel 5 to Richard Desmond in July 2010. ▲ JP MORGAN MEDIA Entertainment One has lowed by Bwark, the producer of On the Credit Suisse team is BY HARRIET DENNYS been the subject of takeover The Inbetweeners, this July. It is Alastair Blackman, the bank’s head of talk since September, when it reportedly interested in media investment banking, helped by Entertainment One, the distributor of confirmed it is considering Entertainment One as a colleagues Indy Bhattacharyya, Stuart the Twilight films (pictured, right) in a sale as part of a strategic way of floating in a diffi- Field and Joe Hannon. Blackman the UK and Canada, has been review of the business, cult market. ANY deal between Entertainment One recently advised on the IPO of digital approached by Zodiak Media Group with Sony, Lionsgate The company, part of and Zodiak Media would be handled by sports media group Perform, which about a £400m reverse takeover and Alliance Films De Agostini Group, JP Morgan and Credit Suisse, the floated 25 per cent of the business on approach, according to reports. linked to initial possi- consists of 45 produc- banks advising Entertainment One on the London Stock Exchange. Discussions are understood to be at ble bids. tion firms with pres- its strategic review. It is expected that Zodiak would an early stage between the two televi- Zodiak has steadily ence in 18 territories. Leading the advisory panel at JP bring Olswang’s corporate partner sion production and distribution busi- increased its scale by A spokesperson for Morgan is Harry Hampson, the Chris Mackie on board, after the media nesses, whose merger would create a buying TV produc- Entertainment One European telecoms and media invest- law firm advised Zodiak Media Group media group with about £1bn of tion business RDF said it did not com- ment banking chief who acted for on its acquisition of Bwark. annual revenues. Media last June, fol- ment on speculation.

DEVELOPERS GIVE UP BATTERSEA FIGHT SAP snaps up REAL Estate Opportunities, the Irish developer behind the regeneration of Battersea Power Station, is resigned to cloud expert the fact that the land- mark site will enter administration this week. Malaysia’s SP Setia will now wait for the lenders – in £2bn deal Lloyds and Ireland’s National Asset Management Agency – to seize con- ▲ TECHNOLOGY premise solutions for managing all trol before making BY LAUREN DAVIDSON relevant business processes.” another bid for the Cloud computing is the service debt linked to the site. SAP, the largest business-manage- where data and processes are hosted ment software provider, on remotely via the internet as opposed Picture: REUTERS Saturday announced a $3.4bn to being located on office premises. (£2.18bn) deal to buy SuccessFactors German trading has seen SAP in a move to extend its reach in the shares gain 17 per cent this year, cloud computing market. valuing the company at just under The cash deal will see the US web- €55bn. based software company, which has SAP said that JP Morgan had David Lloyd Leisure prepares to hire more than 15m subscribers across advised it on its acquisition. Morgan 168 countries, sold for $40 per share Stanley was the adviser to – a premium of 52 per cent over its SuccessFactors, a spokesman for SAP Friday closing price of $26.25. also said. investment bank to assess its options SAP co-chief executive Bill McDermott said that this deal will ANALYSIS l SAP help SAP achieve its goal of exceed- 45.50 ▲ ing €20bn (£17.19bn) in sales and EUR 44.72 Regional, the property firm owned by 79 centres it operates in Britain, and 2 Dec LEISURE reaching a profit margin of 35 per the billionaire Livingstone brothers, is looking for further expansion 44.50 cent in 2015. GYM chain David Lloyd Leisure is held a board meeting in November to opportunities overseas. “The cloud is a core of SAP’s preparing to appoint an investment discuss appointing an adviser. Lloyds Banking Group, which holds future growth, and the combination 43.50 bank to advise on its strategy, accord- The move is reportedly designed to a 30 per cent equity stake in the com- of SuccessFactor’s leadership team ing to reports. help the board assess its options and pany through Caird Capital, is under- and technology with SAP will create 42.50 The company, which is owned consider potential acquisitions, stood to be fully supportive of the a cloud powerhouse,” he added. jointly by Caird Capital, the private rather than to engineer a sale. business and the management. “This will establish an advanced 41.50 equity firm whose investors include It is understood David Lloyd is plan- David Lloyd was unavailable for end-to-end offering of cloud and on- 28 Nov 29 Nov 30 Nov 1 Dec 2 Dec Lloyds Banking Group, and London & ning to add new clubs to the chain of comment.

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Hong Kong’s MTR Corporation is keen to run the Thameslink franchise Picture: REX MTR eyes two UK rail routes

▲ TRANSPORT National Express, c2c has delivered and still holds both the annual and four- BY JENNY FORSYTH week period punctuality records. We MTR CORPORATION, the company that hope to build upon this success and con- operates Hong Kong’s metro system, is tinue running the service after the exist- believed to be working on plans to bid ing franchise ends in 2013.” for two more British rail franchises. Thameslink is run by First Group The Hong Kong group is keen to oper- through First Capital Connect. It could ate the c2c (Essex Thameside) and not be reached for comment. Thameslink franchises, according to Meanwhile, the fate of another weekend reports. planned train line – the controversial The Department for Transport is high-speed route from London to understood to be inviting bids for the Birmingham – is understood to have two services before Christmas. been delayed until the New Year. MTR, which has an almost perfect Transport secretary Justine Greening punctuality record in Hong Kong, has is understood to be considering whether also improved punctuality and upgrad- a £500m tunnel should be bored to min- ed stations in Britain. In 2007 it won a imise impact on the Chiltern Hills land- seven-year concession to operate the scape. She has asked for a feasibility London Overground suburban network study to be carried out on a £1.5m tun- in a joint venture with Deutsche Bahn. nel near Amersham, as well as an envi- But it is likely to face stiff competition ronmental probe. for c2c and Thameslink, which have The 100-mile rail link, due to be built steady take up because they are com- between 2016 and 2026, would cut the muter lines. National Express, which journey between the two cities to 49 runs c2c, is expected to fight for the minutes. But the £32bn project has pro- franchise as it is the company’s only voked fury among many Tory MPs, with remaining British rail contract. Welsh secretary Cheryl Gillan reported- A spokesman said: “As part of ly threatening to resign.

CITYA.M. 5 DECEMBER 2011 EDITED BY 15 HARRIET DENNYS Got A Story? Email [email protected] Follow The Capitalist The Capitalist on Twitter: @dennysharriet X FACTOR JUDGE IS THE LAST MAN AT THE BAR AT IRELAND FUND BALL

CITIGROUP managing director Basil Geoghegan proved his stamina when he became the eighteenth Irishman to successfully scale Mount Everest earlier this year. But even he is no match for X Factor judge Louis Walsh, who was Ball host Graham Norton (centre) with Ireland Fund co-chairmen Zach Webb of JP Morgan (left) and Basil Geoghegan of Citigroup the last man standing at the Ireland Fund of Great Britain’s tenth winter ball at The Savoy on Saturday night, organised by Geoghegan with co- chair Zach Webb of JP Morgan. Walsh arrived straight from film- ing that evening’s X Factor show – and was “mobbed”, The Capitalist phies for his overflowing mantlepiece hears, by scores of bankers’ wives at the annual awards hosted by the demanding autographs. Association of Racehorse Owners: For their children, obviously – three-year-old of the year, owner of It’s trading time which is also why Deutsche Bank’s the year, and racehorse of the year. Tadgh Flood put in some “deter- Collecting the trophies on the mined” bidding to secure Walsh’s sheikh’s behalf were Frankel’s trainer auction lot of two tickets to the reality Sir Henry Cecil and manager Lord show’s live final on Saturday for his Teddy Grimthorpe, who were joined somewhere... teenage daughter, contributing at the Park Lane Hilton by Irish £2,500 towards the £75,000 raised by tycoon JP McManus; Paul Roy, the for- the evening’s live auction. mer Merrill Lynch investment banker Elsewhere in the bidding, oil baron and chair of the British Horseracing John McKeon of oil investment shell Authority; and British Airways chair- Niche Group parted with a “healthy man Martin Broughton. sum” for the flag Geoghegan hoisted Also celebrating was Cenkos Broaden your horizons on the summit of Everest earlier this founder Andy Stewart, whose year, while hedge fund manager Mike unbeaten racehorse Big Bucks won Maye auctioned off a stay in his home the award for outstanding hurdler. with online trading on in the South of France. Top of the lots, however, was a box 15 international exchanges at Twickenham on St Patrick’s Day SEE AND BE SEEN next year to watch the Six Nations IT HAS been friends and family of match between England and Ireland – Jeremy King and Chris Corbin only DSM Demolition paid £11,000 to in the “guinea pig” soft launch for secure their ringside seats at the their new venture The Delaunay England team’s “revenge match”. over the last week. But this morning, both the restau- rant and the reservation line are offi- RACING DEMONS cially open for business, with good FRANKEL, the racehorse known as the numbers expected to turn up to see Usain Bolt of flat-racing (above right), and be seen on the sister venue to The was recently valued at £100m after Wolseley’s first day. 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TOP TEN FTSE 100 STOCKS OUT ON LOAN RANK COMPANY % OF SHARES OUT ON LOAN Short sellers eye Weir Group 1 Next 9.02 2 Weir Group 7.14 3 Lonmin 4.66 and retailers in the FTSE 100 4 Capita 4.59 5 Marks & Spencer 4.11 ▲ CAPITAL MARKETS borrowed by investors, has doubled in Short interest across the FTSE 100 BY ALISON LOCK the past two months to 7.14 per cent. is down slightly, to 1.3 per cent from 6Investec3.75 But its share price has gained 51 per 1.4 per cent in September. HEDGE funds substantially increased cent over the same period in spite of South African asset manager 7IAG3.39their short positions on engineering falling markets, leaving short Investec has seen high short interest company Weir Group in November investors out of pocket. since the end of August and this 8 Aggreko 3.21 after the company disappointed Retailers have also been targeted by remains high ahead of it being rele- investors with its trading update mid- short sellers, with Next seeing loaned gated to the FTSE 250 this week. 9 International Power 3.11 month, new data from Data shares increase to 9.02 per cent from Miner Lonmin, also due to be Explorers shows. 7.71 per cent in September, and M&S moved out of the FTSE 100, has seen 10 Serco 2.94 Short interest in Weir Group, meas- loaned shares rising slightly to 4.11 short interest rise to 4.66 per cent Source: Data Explorers ured by the percentage of its shares per cent from 3.93 per cent. from 3.88 per cent in September. Russia miners Got A View On The to add weight ‘Santa Claus Rally’? to bluechips 5,550.0 ▲ CAPITAL MARKETS (ENRC), which was accepted into the UK100 - Last week 5,500.0 BY ALISON LOCK FTSE 100 after floating with an 18 per cent free float in 2007, caused 5,450.0 RUSSIA’s presence on the UK’s top headaches for investors this summer share index will go up this Wednesday when four of its board members quit 5,400.0 if two of its newly London-listed met- after voicing corporate governance als and mining groups are admitted concerns. 5,350.0 in the quarterly changeover of its con- But the addition of more high stituents. growth emerging markets resources 5,300.0

Evraz, the steelmaking group part- companies has been cheered by other 5,250.0 owned by Chelsea owner Roman fund managers happy to invest in Abramovitch, and Polymetal, Russia’s firms that deliver high returns and 5,200.0 biggest silver producer, have each comply with the UK’s stringent corpo- swapped their global depositary rate governance regime. 5,150.0 receipt listing for shares on the A third company, Irish building London Stock Exchange’s main mar- materials maker CRH, will also be 5,100.0 ket and applied to join the FTSE 100. admitted to the FTSE 100 pending the 01:00 13:00 If given the green light by the FTSE meeting’s outcome, while South 01:00 13:00 01:00 02 Dec 01:00 13:00 13:00 01 Dec committee at its quarterly review on African miner Lonmin and asset man- 01:00 13:00 30 Nov 01:00 29 Nov 28 Nov Wednesday, both groups will join the ager Investec, and satellite maker 25 Nov benchmark index despite vocal oppo- Inmarsat, are likely to be shunted out. sition from some fund managers con- cerned about the level of say that ANALYSIS l Evraz minority investors would have in the 400 p oligarch-controlled groups. 390.00 Only Polymetal is making a full 50 380 2 Dec per cent of its shares public, meeting 360 the condition for foreign-domiciled The FTSE100 added 8% last week, climbing some 200 points on groups, while Evraz has re-domiciled 340 its business to a holding company in Wednesday alone. Did the ‘Santa Claus Rally’ come early, or is the UK and is listing with just a 23 per 320 cent free float. there more to come? October’s highs are still 200 points away. Kazakh mining group Eurasian Natural Resources Corporation 28 Nov 29 Nov 30 Nov 1 Dec 2 Dec Take a view and trade with Spread Co – our spread on the UK100 Russian IPOs have provoked serious is just 0.8pts and our margin requirement just 30 points. debate, but they make great returns So, if you have a view, you’re better off trading with Spread Co.

HACKLES may be raised at some City a problem. The success of many oth- institutions after this quarter’s FTSE ers shows huge investor appetite for reshuffle as the UK’s top blue-chip access to the world’s least-developed CFD trading can result in losses index is filled with yet more emerg- resources. These groups deliver envi- ing markets miners. able returns and their GDR listings that exceed your initial deposit. Adding two Russian metals play- have been reliable for years. They will www.spreadco.com ers to the FTSE 100 has started a seri- still sit under the UK’s governance Apply today at ous debate over how much share regime. So despite the misgivings, capital a firm must float to give until we produce more mining offer- minority investors a valid voice; and ings of our own, the big growth will how many more groups dominated come from these. by a few foreign investors we should bring into the realm of passive Spread Co Limited is authorised and regulated by the Financial Services Authority index-linked UK funds. BOTTOMLINE But these groups may not be such Analysis by Alison Lock 18 News

Godfather Pizza boss Herman Cain has faced sexual misconduct allegations Picture: REUTERS Cain drops US president race

▲ US POLITICS in a few weeks over the autumn. Cain held a Friday night meeting BY HARRY BANKS with his wife, Gloria, who has stayed FORMER pizza magnate Herman Cain mostly silent as several women dropped out of the US presidential accused her husband of sexual harass- race during the weekend after accusa- ment and an Atlanta businesswoman tions of sexual misconduct over- said last week she had carried out a 13- whelmed his bid to win the year affair with him. Republican nomination as an anti- Gloria Cain appeared at his side on Washington tax reformer. Saturday and smiled throughout his Cain’s departure set off a competi- exit speech. tion among other candidates to win Following Cain’s departure, Newt over his conservative supporters with Gingrich now commands a strong voting to start next month in the race lead in Iowa in the race to become to determine the Republicans’ presi- Republican presidential candidate. dential pick for 2012 to oppose According to a new poll, published President Barack Obama. on Saturday, exactly one month Cain, a former Godfather’s Pizza before Iowans become the first in the chief executive, told followers in his US to choose their preferred candi- hometown of Atlanta that “false and date, the Des Moines Register found unproved” sexual accusations had that Gingrich had the support of 25 forced him to suspend his White per cent of likely Republican voters. House bid. The former speaker of the House of He said he would endorse another Representatives was seven points candidate, effectively ending a roller- ahead of the libertarian Ron Paul. coaster campaign that saw the Mitt Romney – who had 22 per cent African-American businessman go of the vote a month ago – has now fall- from complete outsider to the rising en into third place with a 16 per cent star of Republican conservatives with- following. CITYA.M. 5 DECEMBER 2011 News 19 Reform of pensions NEWS | IN BRIEF Airbus deal scuppers 800 jobs Engineering firm GKN’s plan to create 800 jobs in Bristol has been scuppered after it lost a contract to build parts for a may be insufficient, new Airbus jet. GKN had been favourite to win the contract to make wing compo- nents for Airbus’s revamped A320 at its Filton plant. But despite frantic last- minute talks between GKN and Airbus, warns Lord Hutton the deal now looks likely to go to Korean Aerospace Industries. Dyson warns China over patents ▲ POLITICS change is going to be the order of the Billionaire inventor Sir James Dyson has BY DAVID CROW day now, if we’re going to remain warned China that it risks being expelled competitive, successful as an econo- from the World Trade Organisation THE government could have to make my. (WTO) over copyright breaches including further cuts to public sector pensions “We could be heading for the rocks rip-offs of his famed inventions. The because the outlook for the British unless we make adjustments now.” inventor of the Dyson vacuum cleaner economy has worsened, Lord Hutton, But Brian Strutton, the national and blade hand dryer is a member of the the former Labour minister, warned secretary of the GMB trade union, Prime Minister's business advisory group. yesterday. said Hutton was only “considering He issued the warning as executives at Hutton, who was work and pen- one side of the equation”. the company he founded prepare to raise sions secretary in Gordon Brown’s He added: “What he’s forgotten to their concerns this week at an intellectual government, said the calculations look at is the government also property (IP) symposium brokered by the contained in his recently-published announced an atrocious 710,000 job Chinese and British governments. review of public sector pensions now losses in the public sector and a fur- appeared “too optimistic”. ther two years of pay restraint. Former Tesco boss cuts till rolls “The ground underneath [my] esti- “That’s going to bring down the Lord MacLaurin, the former chief execu- mates has changed radically and I’m long-term cost of public sector pen- tive and chairman of Tesco, is investing in afraid in the wrong direction so we sions, and therefore I think Hutton’s a British start-up championing paper-less cannot be sure that the costs will fall own affordability test is still going to receipts. MacLaurin, who helped pioneer over time and that we get to a more be met in the long-term.” Tesco’s Clubcard, is backing Paperless sustainable balance.” Hundreds of thousands of public Receipts, which sends digital receipts to He added: “The events of the last sector workers staged a strike at the personalised websites. couple of weeks have confirmed that changes to their pensions last week. Lord Hutton says there may need to be further cuts to public sector pensions Picture: REX Olympic Media Buzz Shortfalls in benefit LONDON 2012 PARTNERS

IN ASSOCIATION with Repskan.com, the TOP TEN PARTNERS BY MENTIONS plans hit new highs media monitoring and analytics platform, City A.M. is measuring the relative Olympic Brand Position change media buzz around the partners for the ▲ FUND MANAGEMENT lower than expected yields. “If 30 November conditions are London 2012 Olympic and Paralympic Dow Chemical 18 BY ALISON LOCK At the same time, asset values mirrored at 31 December then Games, week by week. The leaderboard, increased only slightly due to high- many companies will be seeing an right, reflects their ranking over the past RISING inflation expectations and er bond prices, and gains were held increased deficit on their balance week, in this case from Wednesday 23 Adidas 6 lower corporate bond yields helped back by a fall in stock markets in sheet at the year end.” November to Wednesday 30 November. to push up pension deficits at the the UK and abroad. Tayyebi said demand for UK gov- BP 3 UK’s biggest companies to the high- The shortfall shows companies ernment bonds as a safe haven Criticism of Dow from est level seen this year, new data on average had 86 per cent of their from the Eurozone crisis was creat- the likes of Ken today shows. liabilities funded, down from 89 ing a “relentless fall in gilt yields”, Livingstone has brought BT -3 The funding gap in defined bene- per cent a month ago and from 88 which when combined with quanti- it up the rankings for all fit schemes for all companies in the per cent at the end of last year. tative easing, was bringing down the wrong reasons. Samsung = 0 FTSE 350 rose to £80bn at the end of Mercer senior partner Ali Tayyebi high quality corporate bond yields. Meanwhile, Adidas has picked up strong November, up by 25 per cent in only said funding levels fell as much as Mercer partner Adrian positive mentions over the past week. one month from the end of six per cent during November as Hartshorn said firms were trying There has been a warm reception of the Visa -2 October, Mercer said in its Pensions volatility soared during the month. increasingly non-traditional strate- news that Adidas has extended its sponsor- Risk Survey. “We are beginning to see the bad gies to try to reduce long-term risk. ship deal with the British Olympic McDonald's = 0 The corporate pension schemes economic news catch up on the “Companies and pension scheme Association beyond London 2012 until Rio had gross liabilities of £553bn at accounting numbers, which had so trustees are looking at scenario 2016 and also for the launch of an exclusive the end of November, made larger far been relatively protected in the analysis to help them plan actions edition of trainers to raise funds for British Omega 1 as the corporate bonds they bought midst of the general economic tur- for those scenarios which they are athletes. There has also been strongly posi- to discount the liabilities delivered moil,” he said. most worried about,” he said. tive mention regarding the Olympic BMW 1 Volunteer uniforms which will be manufac- tured by Adidas partly due to the fact that the uniforms are to be made from recycled Atos 10 fabric but also just because volunteers are Aviva mulls selling off part of UK excited to receive them; all boding well for Adidas in the run up to the Olympics. Adidas Olympic mentions by category annuity book to bolster capital base 6% 6% 6%

▲ Blogs INSURANCE the end of June, the Telegraph said. strategies Aviva has under consid- 4% The insurer has a huge presence eration, as it seeks to make its posi- National News AVIVA, the UK’s biggest insurer, is in Europe and has had larger hold- tion stronger and safer. considering selling off part of its ings of Eurozone sovereign bonds Regional News portfolio of UK annuities to than many of its peers, causing its ANALYSIS l Aviva PLC 320.80 330 2 Dec Topicals strengthen its balance sheet after a share price to be hammered over p % 23% fall in its regulatory capital surplus recent months on fears for the sta- 55% due to volatile stock and bond mar- bility of the region. 320 Twitter kets over recent months. A spokesperson for Aviva 310 Aviva is the UK’s biggest provider declined to comment on the possi- Other of individual annuities with a 23 ble sale, but said: “As with any 300 per cent market share, but may sell insurer, we regularly look at vari- off part of the book for a cash pay- ous options to optimise our capital 290 ment to shore up its IGD regulato- position such as re-insurance and ry capital, which fell to £2.7bn by securitisation”. Brought to you by the end of September from £4bn at The sell-off is one of several 28 Nov 29 Nov 30 Nov 1 Dec 2 Dec 20 News CITYA.M. 5 DECEMBER 2011 Petrol congress meets amid Middle East unrest

time the triennial event has ever been headed. The Middle East is home to feet. forecasts 2011 GDP growth at 18.7 per held in the Middle East. It could not many of Opec’s heavyweights and the Energy demand though remains cent. Unlike several of its Arab counter- have come to the region at a more cru- Strait of Hormuz, a critical choke- elevated with the IEA forecasting glob- parts, Qatar has been able to avoid cial time. point. More than 15m barrels per day al oil demand to grow by 1.3m barrels domestic turmoil. The country, rated The momentum of the Arab Spring of crude oil go through the waterway, per day in 2012. AA by credit rating agencies, success- still engulfs the region, and disrup- some 17 per cent of the world’s oil So attracting investments for the fully raised $5bn recently in its first tions in oil supply became very real in demand. industry in such a climate raises the sovereign bond issue in two years. Libya. Regardless of how swift a return A multitude of issues will be dis- stakes for various players ranging from The hope in Doha therefore is that CNBC COMMENT to pre-conflict levels of production will cussed over the course of the five day state-owned oil groups to the major the dialogue between the energy be, doubts about Opec’s spare capacity event here in Doha. Topics such as the independent oil companies. And as industry’s biggest players will translate YOUSEF GAMAL EL-DIN in particular have exacerbated supply impact of conflict and territorial dis- much as fossil fuels may continue to into a more streamlined and coordi- concerns. putes, to what constitutes a fair price dominate the world’s energy mix or a nated response to the fragile economic HE TWENTIETH World With Syria entrenched in de-facto for oil and gas are on the agenda. few years to come, dialogue in Doha and geopolitical realities. At the very Petroleum Congress kicks off in civil war, and Western powers ramping Most Opec members, especially in will also focus on the alternative least, it’s hoped the Congress will be a the Qatari capital of Doha this up the rhetoric on Iran, the prospect of the Gulf, shy away from endorsing lev- sources of energy. step in that direction. Tweek, aiming to boost dialogue a broader regional conflict has many els above $100 per barrel out of fear of Qatar is the world’s biggest natural Yousef Gamal El-Din is Middle East among stakeholders in the petroleum investors concerned about where oil demand destruction and a global gas exporter, and also boasts one of the Correspondent for CNBC. Follow him on industry and beyond. It is the first prices, now above $100 a barrel, are economy still struggling to stay on its fastest growing economies. The IMF Twitter @youseftv Iran: oil price could soar to $250-a-barrel

▲ OIL & GAS Washington and EU countries BY HARRY BANKS were already discussing measures to restrict oil exports after the United IRAN yesterday warned the West Nations nuclear watchdog issued a that any move to block its oil report in November with what it said exports would more than double was evidence that Tehran had crude prices with devastating con- worked on designing an atom bomb. sequences on a fragile global econo- Iran claims its nuclear programme is my. entirely peaceful. “As soon as such an issue is raised The US Senate voted on Thursday seriously the oil price would soar to to penalise foreign financial institu- above $250 (£160) a barrel,” foreign tions that do business with Iran’s ministry spokesman Ramin central bank, which takes payment Mehmanparast (pictured below) said for the 2.6m barrels Iran exports a in a newspaper interview. day. The European Union is consider- The comments come as Iran strives ing a ban – already in place in the to contain international reac- United States – on Iranian oil tion to the storming of the imports. British embassy last week, So far neither Washington nor a move which drew Brussels has finalised its move immediate condemna- against the oil trade or the central tion from around the bank amid fears of the possible world and may galvanise impact on the global economy of support for tougher action restricting oil flows from the against Tehran. world’s fifth biggest exporter. But the British embassy attack dragged relations with Europe to a long-time low and Iran is now facing rising rhetoric about a direct hit on its main source of for- eign earnings. Shell signs deal to develop £4bn petrochemical complex in Qatar

▲ OIL & GAS Middle East agreements for Shell’s Voser, who is on a tour of the region. ROYAL Dutch Shell signed a deal with Last week, Iraq signed a final $17bn Qatar yesterday to develop a $6.4bn deal with Royal Dutch Shell and (£4.1bn) petrochemicals complex in Mitsubishi to capture flared gas at Ras Laffan in the Gulf Arab state. southern oilfields, a project that Qatar’s energy minister, should boost production of badly Mohammed al-Sada, and Shell’s chief needed electricity. executive Peter Voser signed the heads The 25-year project, one of the of agreement in the Qatari capital largest Iraq has signed with foreign Doha. firms, is meant to help harness more The deal is the latest in a series of than 700m cubic feet per day of gas.

22 News CITYA.M. 5 DECEMBER 2011 Olympus hid £1.1bn loss: source

▲ TECHNOLOGY The Nikkei business daily said that Potential criminal charges could the panel was leaning towards stating include filing false financial state- BY HARRY BANKS that it had found no proof that organ- ments, fraud and aggravated breach of A PANEL appointed by Olympus to ised crime syndicates were involved in trust. probe the accounting scandal engulf- the scheme. Olympus also needs to meet a 14 ing the Japanese firm estimates that The 92-year-old maker of cameras December deadline to file its financial Olympus hid investment losses total- and endoscopes is battling to remain results for the six months to ing 130bn yen (£1.1bn) at the peak of listed on the Tokyo Stock Exchange, September in order to avoid an auto- the cover-up, a source familiar with but if the panel does find involvement matic delisting. the investigation said. of organised crime syndicates that out- Former Olympus boss Michael The source said the panel’s report, come would be difficult. Woodford, who blew the whistle on to be issued as early as tomorrow, Tokyo police, prosecutors and the accounting tricks at the company after would state that former executive vice Securities and Exchange Surveillance his sacking from the top job in president Hisashi Mori and ex-internal Commission (SESC) have launched a October, has launched a campaign to auditor Hideo Yamada led the scheme rare joint investigation of the scandal, oust the current board and replace it and informed former president and are likely to step up their probe with his own team of candidates led by Tsuyoshi Kikukawa. after the panel report is released. him as nominated chief executive. Whistleblower: former Olympus chief Michael Woodford Picture: REUTERS ECONOMICS Weak Europe knocks firms in the capital ▲ UK ECONOMY “It’s clear that London business BY TIM WALLACE confidence has been knocked by the ongoing uncertainty in the Eurozone OPTIMISM about the state of the and weak demand and growth at economy has plummeted among home – we now need the London’s businesses, the Government to power ahead with its Confederation of British Industry’s autumn statement plans to help busi- (CBI) bi-yearly business prospects sur- nesses grow and create jobs,” said British expats celebrate the Royal Wedding in Magaluf, Spain Picture: REX vey showed today. Sara Parker, London regional director. Most firms – 55 per cent – cited the However, companies do believe the threat of a double-dip recession over Olympics may provide a boost. the next year as their major concern. Ninety-two per cent think the Only 13 per cent of firms in the Games will benefit London interna- Report says expats fear economic woes capital feel “more optimistic” about tionally, and 78 per cent are “looking prospects for the economy over the forward” to the event. next six months. “It’s good news that the majority of ▲ GLOBAL ECONOMY That lowly proportion compares the capital’s companies are now appearing, with nearly half of expatri- nomic outlook in their current coun- with 43 per cent who felt optimistic thinking about planning for the FOREIGNERS living in Egypt and ates living in Italy (44 per cent) and 38 try. Yet, it seems despite this wider in June. Games,” continued Parker. southern Europe reported the most per cent of those in Spain fearful for unrest, expats remain financially shel- Hiring in London has taken a hit as “The event will showcase London as widespread weakening in the local the future, as the Eurozone crisis takes tered from the turmoil.” a result. a world-leading business location, economy during the last year, accord- its toll. Nearly half of foreigners living in The number of companies “only and highlight the success of UK firms ing to new research from HSBC. HSBC Expat, formerly known as Britain (49 per cent) feel the economy hiring when essential” has risen from in delivering a complex construction Expats in Egypt (100 per cent), Spain HSBC Bank International, also found, has worsened over the last two years 59 per cent in June to 64 per cent. and infrastructure project. (97 per cent), Bahrain (94 per cent) and however, that the wealth of expatri- but only a quarter think it will contin- Twenty-three per cent of firms “However, there is still more work Italy (88 per cent) were among those ates is largely immune to global eco- ue to deteriorate. have implemented recruitment to be done over coming months to most likely to report a deterioration, nomic turmoil. Lisa Wood, head of Around 5.6m Britons live abroad, freezes, up slightly from 20 per cent make sure transport, staffing and the HSBC Expat Explorer said. marketing at HSBC Expat, said: “Many according to the Institute for Public six months ago. security issues are ironed out.” Their concerns show no sign of dis- expats are facing an uncertain eco- Policy Research. £50bn more QE now would give shock Week ahead’s industrial boost to Britain, says business group data likely to be gloomy ▲ UK ECONOMY the recovery, the business group said. Global Insight’s Howard Archer. ▲ EUROZONE ECONOMY Spanish production is set to fall 1.8 “UK monetary policy must be as Nonetheless, the BCC believes a sur- per cent in the month, and the UK is BY TIM WALLACE expansionary as possible to protect prise move would maximise impact. MANUFACTURING figures across forecast to see a 0.3 per cent fall in PRINTING more money would boost our economy from adverse effects of “An early announcement would Europe are released this week, and manufacturing output. the economy just when a stimulus is deficit cuts and Eurozone problems,” strengthen confidence and help economists expect a gloomy outlook. French output is expected to be up most needed, the British Chambers of said BCC chief economist David Kern. counter the negative mood that has October’s figures are expected to 0.1 per cent in the month, but down Commerce (BCC) argued yesterday, “There is a strong case for the MPC become apparent following the grim show an oncoming recession in the one per cent annually. However, calling on the Bank of England’s to announce a further £50bn increase projections from the Office for Budget Eurozone and weakness in the sur- Barclays Capital forecasts a 0.6 per cent Monetary Policy Committee (MPC) to in the QE programme this week, to Responsibility,” Kern continued. rounding economies. monthly rise in Germany, rebounding announce more quantitative easing £325bn.” The BCC is also calling on the MPC Barclays Capital predicts Italian from a 2.7 per cent drop in September. (QE) at Thursday’s meeting. Other economists disagree. to purchase private sector assets, and industrial output – data out on The data “should provide further Low economic growth and further “The message from the MPC seems for George Osborne to accelerate the Thursday – will be flat in the month to evidence the Eurozone is likely to con- fiscal austerity mean monetary policy to be that more QE is highly probable, implementation of credit easing, October, “consistent with a decline of tract in the fourth quarter,” said is the most important tool left to help but not until the New Year,” said IHS which aims to help SMEs borrow. 0.5 per cent year on year”. Capital Economics’ Ben May. CITYA.M. 5 DECEMBER 2011 News 23

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

turnaround consultancy Miroma Leisure. deputy fund manager of the Cazenove Investment Funds Direct. Tenemos strategic bond fund. The banking software provider has appoint- Lloyds Bank Corporate Markets DLA Piper ed former SAP executive Dr Bernd-Michael Howard Grubb has been appointed as FSA The law firm has appointed intellectual Rumpf as global head of the company’s cus- head of e-FX algorithmic trading, based The Financial Services Authority has property specialists Melinda Upton and tomer services group, reporting to chief in London. Grubb joins from BNP appointed Paul Stockton as non - Nicholas Tyacke to its partnership, mov- executive Guy Dubois. Bernd-Michael previ- Paribas, where he was head of research executive director to the board of the ing from Blake Dawson and Clayton Utz ously spent 12 years at SAP, where his exec- in electronic FX trading, and has also financial services compensation scheme. respectively. Both will start in early utive roles included head of field services worked in electronic trading at Goldman Stockton is currently group finance 2012, based in the firm’s Sydney office. and support. Prior to that, he was chief exec- Sachs and Barclays Capital. director at Rathbone Brothers. utive of SAP SI AG, before its integration British Standards Institution into SAP, and strategic consultant and prin- M&G Investments SEI Sir David Brown has been named as cipal at Cap Gemini Ernst & Young. The investment manager has appointed Richard Goodall has been appointed as deputy chairman and chairman desig- James Tomlins as fund manager for its managing director, global wealth servic- nate of BSI Group to succeed current Miroma Group for Miroma Ventures, the company’s £77m European high yield bond fund es at the investment solutions outsourc- group chairman Sir David John, who Miroma has hired Richard Hirst, formerly newly created arm for its non-corporate and deputy fund manager for the £1.1bn ing provider. Goodall was most recently will retire on 30 March 2012. Sir David UK senior marketing manager at barter interests. These include invest- high yield corporate bond fund. Before sales and marketing director at joined the board as non-executive McDonald’s, to lead commercial strategy ment vehicle Miroma Capital and leisure Tomlins joined M&G in June, he was Ascentric and a board director of director in May 2010.

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

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ANALYSIS l Compass Group ANALYSIS l Kingfisher ANALYSIS l SSE p 589.50 p 263.50 p 1274.00 600 2 Dec 280 2 Dec 1360 2 Dec 580 260 1320 560

540 250 1280 520

220 1240 Oct Nov Oct Nov Oct Nov COMPASS GROUP KINGFISHER SSE Goldman Sachs rates the food and support services group as a “buy” and Citi rates the home improvement retailer as a “buy” and raises its target JP Morgan rates the power group as “underweight” and raises its target increases its target price from 695p to 705p, as well as updating its esti- price from £2.80 to £3, following strong third quarter results last week. price from 1,060p to 1,205p, saying the company’s defensive appeal is under- mates. The broker expects earnings per share of 43.74p in 2012, rising to The broker says the forecast-beating results add credibility to the compa- mined by its volatile earnings stream and rising debt. The broker says SSE’s 48.99p in 2013, but sees several downside risks to both its view and price ny’s +10 per cent-plus earnings per share growth target to January 2014, Generation and Supply business – a key driver of growth from 2003-2009 – target. These include negative foreign currency translation effects, a mate- driven by a combination of like-for-like sales progress, cost controls and a is facing a challenging future at the same time that its gearing is at a record rial increase in price competition, and significant food cost inflation. +50-70bp group gross margin delta per year. high, and that it will likely remain cash negative until at least 2015.

WALL STREET WEEK AHEAD

EU summit the new focus as HE Eurozone will once again formance since March 2009. The best serve as the source of Wall performers in the last week were Street’s angst, as investors look companies with more international Tto a summit of the region’s sales, according to Bespoke political leaders for decisive solutions Investment Group, an investment for the ballooning debt crisis. adviser in Harrison, New York. investors waver over the euro Stocks posted their best week in While volatility remains high as more than two years last week, driven markets are susceptible to any nega- by central bank efforts to provide tive headlines coming out of the ANALYSIS l FTSE ANALYSIS l DAX 6,080.68 cheaper dollar loans to struggling Eurozone, investors appear satisfied 5,552.29 European banks. for the time being that the region’s 5,800 p 6,400 2 Dec 2 Dec p In addition, the new head of the leaders will stay on track in tackling MARTIN ON 6,200 5,600 European Central Bank said on the crisis. 6,000 Thursday the ECB stands ready to act “We’ve seen some policy changes THE MARKETS 5,400 5,800 more aggressively to fight Europe’s which suggest they are finally begin- debt crisis if political leaders agree to ning to understand that they’ve got a 5,600 5,200 much tighter budget controls at the 9 problem,” said Phil Orlando, chief 5,400 5,000 December summit. equity market strategist at Federated 5,200 But Wall Street investors can be for- Investors in New York. “They are final- given for feeling like they’ve been in ly recognising that this is their 5 Sep 23 Sep 13 Oct 2 Nov 22 Nov 5 Sep 23 Sep 13 Oct 2 Nov 22 Nov this position before. Markets see- Lehman moment, and they have got sawed throughout the fall, guided by to do the same sort of things that we cy bloc continued to argue over the This week is a busy one on the eco- prevailing sentiment out of Europe. did back in the 2007 to 2009 period.” role of the ECB, the creation of nomic data front. Today we have “It will be all focused on the With markets swings closely tied to Eurozone bonds and fiscal integra- Services PMI in both the US and UK, upcoming Friday summit. But don’t sentiment about the progress made MARTIN SLANEY tion. and Eurozone Retail Sales. Tomorrow forget this is the 15th summit we’ve in the Eurozone, investors have been Little appears to have changed, yet sees a rate decision from the Reserve had now during the Eurozone crisis, forced to weigh the region’s fiscal sta- the FTSE is now 500 points higher. Bank of Australia. Expectations are and every time the market and then bility with US stocks that are seen as AST week saw an extraordinary Perhaps the market was oversold. for another cut of 25 basis points. We boom -- it gets disappointed,” said Ken cheap by many analysts. turnaround in equity markets. Maybe better-than-expected US data have UK Manufacturing Production Polcari, of ICAP Equities in New York. Recent corporate outlooks and ana- The index bounced off 5,100 and has helped to dispel worries of a glob- on Wednesday, and on Thursday we’ll Until now, the ECB has resisted lyst projections have been painting a Lshot higher with barely a back- al economic slowdown. Or could hear the latest statement from the prodding from markets and world less rosy picture, with estimates for ward glance. The FTSE 100 tacked on investors view the coordinated cen- Bank of England’s MPC. On Friday leaders to step in as the lender of last fourth-quarter S&P earnings growth more than eight per cent over the tral bank move that cut the cost of we’ll see inflation data from China resort. European credit market yields tumbling over the past two months as period and on Friday it tested signifi- dollar funding as a harbinger of and the UK, and Consumer have soared in recent weeks on con- well as a near-record high ratio of neg- cant resistance at 5,600. This marks greater cooperation in the future? Sentiment and Inflation cerns that the Eurozone could break ative corporate preannouncements to the 61.8 per cent Fibonacci retrace- Whatever it was, it boosted investors’ Expectations from the US. up or one or more countries would positive ones, according to Thomson ment of the sell-off that we experi- risk appetite. But crucially, the week closes with default on their debt. Reuters Proprietary Research. enced from May to October. GFT quotes two-way prices on stock the EU Economic summit. This has French President Nicolas Sarkozy is Even if European leaders continue Ten days ago, most of the major indices around the clock, even when become the new focus for investors, due to meet German chancellor on a path that investors have cheered, global stock indices were threatening the underlying markets are closed. and there is a strong expectation that Angela Merkel today to outline joint the difficulty in putting plans in to break below significant support The FTSE 100 index is called to open a definitive course of action will be proposals for the summit. place may throw cold water on and investor sentiment was pro- down 42 points at 5,510. The German agreed on by Europe’s leaders. Investor optimism over apparent investor optimism. Borrowing costs in foundly negative. Policymakers DAX is expected to open down 31 Another failure will see investors progress by Eurozone leaders toward major nations such as Italy and Spain across the Eurozone repeatedly failed points at 6,050 and the French CAC rush to the exits. taming their debt problems helped remain at levels considered unsus- to address the escalating debt crisis, 40 is forecast to open down 11 points Martin Slaney is director of global prod- propel the S&P 500 7.4 per cent high- tainable in Europe’s slow-growth and the core members of the curren- at 3,154. uct management at GFT er for the week, its best weekly per- economy. 24 CITYA.M. 5 DECEMBER 2011 The Forum cityam.com/forum The coalition’s pension plan is an insult to private sector workers, not to the unions

HE recent concessions by the coalition, in Furthermore, as part of the recent conces- ing to full effect the opportunities for obfusca- respect of the public sector pension negoti- sions, the acceptable range for the cost of public tion and bamboozlement offered by the pen- ations, verge on an unconditional surren- sector pensions will be increased, from 17 per sions theme. But, paradoxically, could the Tder to the unions, perhaps on a scale cent to 21 per cent up to 20 per cent to 22 per unions’ success, to date, ultimately be their unprecedented in the history of public sector cent of the annual wage bill. The latter is approx- undoing? Such is the opacity of pensions that labour negotiations. The price will be paid by imately £182bn; the 3 per cent increase in the few within the public sector appreciate just how those who are not at the negotiating table: the lower end of the range is £5.4bn per year. good the current offer is. By striking, public sec- private sector and the young. The latter could be Consider an alternative use for this state spend- tor workers could have made a tactical error of summed up as simply an extension of the on- ing; it is equivalent to cutting the rate of corpora- Scargillian proportions, a major step towards going perpetration of generational injustice. tion tax by 4p. Imagine the potential for snatching defeat from the jaws of victory. The By agreeing to exclude those within 10 years of economic growth were such an initiative to be coalition could still just pull the current deal off retirement from any deal, as well as increasing implemented today. the table, and walk away. To be clear, what is on the pension accrual rate, the coalition has wiped There was an alternative: there are a few cash- offer is a pension that is roughly three times big- out, for the next 10 years, any scope for meaning- flow quick wins which the Treasury could have ger than that which is typically available to a pri- ful cost savings. The only remaining benefit, used as far more effective bargaining counters. vate sector worker on the same salary. within that timeframe, will be additional The most productive would be to put an end to In the interim, the unions may accept the employee contributions, a mere trickle when contracting out of the State Second Pension deal, but this could ultimately prove to be a compared to the burgeoning cost of meeting Pyrrhic victory, the price being even greater sub- pensions in payment. sequent job losses to exert some control over the Four years ago the public sector pen- cost of future pensions. Meanwhile, the chief sec- sions’ cashflow gap (between contribu- What is on offer is a pension retary to the Treasury should reconsider his ludi- tions and pensions in payment) was an crous comment that the proposals would insignificant £200m. In 2010-11 it was that is roughly three times “endure for at least 25 years.” Over that time- £4.3bn, and in this year’s March Budget frame, no one knows how our economy will per- the gap was forecast to be £7.2bn in 2014- form, or what the additional costs may be from 15. Last week’s OBR report, accompany- the private sector equivalent increasing life expectancy. This leaves one final ing the Autumn Statement, increased question, to the Prime Minister. He has made it the 2014-15 forecast to £10bn (and rising clear that the pensions offered to the public sec- thereafter). With three-year forecasting (S2P), saving some £3.9bn annually on allied tor are “far, far better than pensions in the pri- volatility such as this, the unions’ claim national insurance contributions rebates. vate sector.” Why should they be? of on-going affordability, based upon a 50- Indeed, the coalition should have started the Michael Johnson is a research fellow at the Centre year cost projection, is totally lacking in process of public sector pensions reform by rais- for Policy Studies. credibility. ing the state pension to at least £140 a week. By In the meantime, the gap has to be putting in place a bedrock of retirement income plugged by the Treasury; this, together with above the means-testing threshold, the coalition Agree? Disagree? Got a sharp comment? employer contributions, leaves taxpayers could claim to have addressed the unions’ legiti- The Forum wants you to join the debate. meeting at least 80 per cent of the cost of pub- mate concerns over pensioner poverty. It could lic sector pensions. So increases in employee be (more than) financed by reinvesting the ensu- COMMENT NOW ON contributions that are small relative to the total ing reduction in means-tested benefits (saving cost of pensions will be of limited benefit to up to £8.6bn annually) and ending higher rate Twitter: @cityamforum; the Treasury. The real economic benefits tax relief (£7bn annual saving). The coalition on the web: cityam.com/forum; only arise well beyond 10 years hence, would then be in a stronger position to negotiate principally powered by Lord Hutton’s pro- a route map to a wholly defined contribution or by email: [email protected]. posal to link the retirement age to the based framework for public sector pensions. Top responses will be reprinted in The Forum. retreating State Pension Age. Helpful in To date, the unions have comprehensively out- MICHAEL JOHNSON the future, but of no political value today. witted the coalition in the media war, harness- CITYA.M. 5 DECEMBER 2011 25 In association with Email: [email protected] Twitter: @cityamforum The Forum

RAPID RESPONSES UnCommons sense A warning from As a tax-and-spend liberal who build rental homes and help real way as the railways. Prices believes in big government I am working people. It’s all common would keep going up each year confounded to find myself agree- sense – which is why politicians and no real improvement would ing with Dr Tim Morgan [There’s will not do it. be seen by the customer. the future: Don’t one economic policy the coalition John Finch Jason McCarthy has yet to try, last Tuesday]. He points to some truths that have been forgotten by all parties in Road to ruin Speak your mind this debate: growth is unlikely to come from anywhere; the NHS Your proposed road reforms Got a sharp comment? bank on old ways and defence are over-bureaucra- [Time to bring our roads into the Readers are invited to comment tised; and efforts to decentralise market economy, last Friday] on the web: cityam.com/forum; have been disastrous failures. would be great, but I can't help by email: [email protected]; And he offers solutions. No PFI, but think it would go the same and on Twitter: @cityamforum. Technology is at a tipping point – Keep a new Heathrow banking needs to runway on the table innovate, or else OR banks, the path of lowest possible risk is to continue doing what th ey’ve always done; however th is would be a grave mis- BY STUART FRASER Ftake, as Alan Hughes wrote in th e Fo ru m last week [The challenge to banks: Who will lead on service, Wednesday]. Not only is service impor- RIDLOCK is often Extra capacity is needed, though it may require tant, as Hughes argues, but with technology the outcome of unpopular decisions. shifting th e way we bank, th ere are huge public sector walk- The danger is that by the time progress is made opportunities for innovation here too. PAUL-JERVIS HEATH Gouts so we can be other hubs across Europe will have taken advantage of Transforming th e services banks offer can grateful that last week’s our failure to deliver in time. respond to customer behav iour and rebuild strikes did not, as feared, Already our ability to access key high-growth mar- consumer trust. This has to be more th an a severely impact upon kets is becoming severely constrained. Better-connect- service th at manages a weekly budget or a new Heathrow. ed hubs such as Paris and Frankfurt boast 1,000 more savings product with an introductory rate that changes in circumstances, or holiday funds. Civil servants and oth- annual flights to the three largest cities in China than vanishes six month s later. Banks need to pro- By making real improvements to th eir serv- ers stepped in to prevent the lengthy queues and Heathrow. vide a bespoke service th at meets a customer’s ices based on consumer data, banks can incen- angry scenes that would have damaged our interna- This is important because UK businesses trade 20 individual needs. One size fits all will simply tivise increased engagement from th eir tional reputation with both tourists and businesses. times as much with emerging markets that have no longe r cut it. customers. The more th e customer engages As a world-leading business hub, London has tradi- direct daily connections to the UK as they do with The way we bank is fundamentally chang- with th eir bank, th e more th ey will receive a tionally benefited from excellent transport links to des- those that do not. ing: driven by th e proliferation of smart- service pertinent to th em, based on th eir own tinations all over the world. This is an integral part of We understand both the political and environmental phones, more and more customers are profile and behav iour. To prov ide indispensa- our success as an international financial centre. issues that surround aviation policy. Wherever new accessing banking services on th e move. ble services, banks must embed th emselves The investment programme outlined by the chancel- airport capacity is planned there will be objections Developments in a number of key technolo- into th e lives of th eir customers – so th ey not lor in the Autumn Statement will help to deliver the from those likely to be affected or concerned about gies, such as mobile banking and th e digital only facilitate saving for a holiday, but also pro- infrastructure improvements across the country need- the environmental impact. It is, however, surely better wallet, are converging to prov ide th e opport u- vide a gateway to book flights, exchange cur- ed to improve growth prospects. Crossrail and the to have planes parked on the ground than stacked in nity to take advantage of this shift. With con- rencies and purchase travel insurance, all at Tube upgrade will also help to meet growing demand the air. sumers increasingly managing th eir affairs on th e touch of a butto n. over the medium term. London is behind the curve when compared to our a single device, banks can capture live, accu- It remains to be seen whether th e banks are But our competitive edge as an international hub is European rivals. They are already delivering increased rate data on th eir customers and give almost ready to embrace this, and bring down the bar- being eroded as we wait for decisive action to upgrade capacity and we need our existing hub to work far inst antaneous feedback. The benefits to th e riers to th e services th ey offer in order to our airports. more efficiently. banks are clear: more data allows better profil- rebuild consumer trust. If th ey aren’t, it is only The chancellor’s commitment to exploring all the Interim measures are possible such as “mixed ing, which leads to a better ability to predict a matter of time before someone else steps in. options for more aviation capacity and support for a mode” operation – more intensive use of existing run- need, which in turn means more effective sell- Technology giants such as Google and Apple hub airport in the South East is welcome but we now ways. Increased runway capacity at other airports, ing and gr eater sales opport unities. have been hinting at moves into th e indust ry need action to match this pledge. And if these other including Stansted and London City, would also be Developing a “branch in your pocket” would for some time. Meanwhile, th e UK’s largest options cannot deliver enough capacity in time, the welcome but Heathrow remains – by some distance – allow banks to simplify as well as personalise supermarket Tesco is preparing to move into City’s view is that increased runway capacity at our primary international gateway. th e services – prov iding a single account dash- in-store banking so it becomes th e ultimate Heathrow should remain on the table. The government has pledged to show the UK is board to allow easy access to key information: one-stop-shop. As trusted names with a proven Access to aviation services is a critical requirement “open for business”. It is time the coalition proved it by income, outgoings and transactions, as well as record in innovation, they pose a genuine for firms across the City and London as a whole. We taking control of aviation strategy and facing up to the charts and graphs to compare spending threat to the banks’ position. This is a friendly must rise to the challenge of increasing demand, with difficult decisions. month-to-month and year-to-year. This can be warning. passenger numbers across London’s airports forecast Stuart Fraser is policy chairman at the City of adapted to meet th e customer’s needs – and Paul-Jervis Heath is head of design for Head to rise from 140m a year in 2010 to 400m in 2050. London Corporation. regularly adjusted to reflect savings targets, London. 26 Wealth Management | Spread Betting

THE TIPSTER PLASTIC FANTASTIC VICTREX The sky is HEN Victrex reports its earn- ings on Tuesday, analysts are expecting revenues of around W£93m, up from £75m this time last year. The maker of polymers’s shares have slid 27 per cent from their highs in July of 1,600p, but it looks like it is on the way back from lows of 1,020p. Strong gains and a break above the limit the 50 day moving average last week at 1,161p could mean there is “polymore” to come. Spread Co offers a spread on Victrex of 1,167.1p-1,170.8p. The FTSE 100 index has broken the back of the recent weakness and is close to testing its 200-day moving average again which currently sits around the 5,650 area. Considering the Dow Jones has broken back above its 200-day moving average there’s a chance that the FTSE might be soon to follow. Capital Spreads quotes 5,569.0- 5,570.0 for the UK 100 Rolling Daily. Third quarter numbers from the retail giant Tesco will be released on Thursday and the impact of the recent supermarket price war will be closely scrutinised. Given the spat is being seen as helping drag inflation down a shade, it’s certainly no bad thing for the wider economy, but the share price has spent the bulk of the year strug- Philip Salter gazes at Ichimoku clouds and how they can help to gling to push above the 400p mark. Many analysts remain bullish and forecast whether you’ll see rays of sunshine from the markets clearly the company will be looking for a bumper Christmas, so any guidance here will be closely watched, but the company’s ever expanding overseas HAVING condensed for 30 years in the the results on one chart.” span B – this feature is given its name by the operation – combined with a weak mind of Goichi Hosoda, a Japanese jour- Ichimoku uses five indicators, each of which appearance of this area when shaded. Markos pound – will continue to add focus to nalist, ichimoku kinko hyo – which trans- indicates an average or price: Solomou of Easy-forex notes: “When green and the international arm. Current IG Hlates as “one glance balanced chart” – 1. Tenkan sen (calculated by averaging highest prices are above the cloud, this is considered an Index price is 406.9p-407.8p. took Japanese traders by storm when it was high and lowest low during the last 9 days) indication that the trend is an uptrend. When Two weeks ago we called Amazon unveiled in 1960. It’s now a stock indicator in 2. Kijun sen (calculated by averaging highest red and prices below the cloud the trend is worthy of a buy when pulling back to Japan and has a scattered following in Europe high and lowest low during the last 26 days) downtrend. When prices are in the cloud the long term support lines around $186. and the US. This should only precipitate in the 3. Chikou span (today’s daily closing price pro- trend is flat.” Hewson says unlike with typical Seems the Black Friday shoppers coming years. jected into the past by 26 days) support or resistance indicators “kumo has weren’t the only ones picking up bar- 4. Senkou span A (calculated by taking the aver- depth, which indicates how likely it is for a price gains as Amazon came within 60c of CHARTING THE CLOUDS age value of the sum of the tenkan sen and the to break through the cloud.” hitting our target of $200 on Friday. “Ichimoku is a complex charting system, which kijun sen, which is then projected 26 days into The trendline this week comes in can be used as part of many trading strategies,” the future) TRIGGERING SIGNALS around $190 and any dips should be says Michael Hewson of CMC Markets. Although 5. Senkou span B (calculated by averaging the Ichimoku signals are generated when key lines used as buying opportunities for a ichimoku charts appear confusing at first sight, highest high and the lowest low over the prior 52 cross. A buy signal is triggered when the tenkan push through $200. Spread Co offers a using ichimoku is actually quite easy. Kathleen days, but plotted into the future) sen crosses above the kijun sen from below, spread on Amazon of $197.45-$197.85 Brooks of Forex.com thinks “the indicator’s Hewson explains: “The most distinctive fea- while a sell signal is triggered when the tenkan Craig Drake appearance should not scare traders, as it is sim- ture of ichimoku is kumo (translates as ‘cloud’), sen crosses below the kijun sen from above. But ply based averaging highs and lows, combining the area between senkou span A and senkou as Brian Dolan of Forex.com notes in Trading

THE WEEK AHEAD in association with Capital thinking #6

Plan your trade and trade your plan.

Discover how financial spread betting can be used to take advantage of current market COMPANY NEWS ECONOMICS POLITICAL NEWS trends by attending a Capital Spreads exclusive webinar – “An introduction to l TUI Travel announces its preliminary results l The Bank of England and the European Central l US and Chinese defence officials will hold their spread betting and current market trends: for the year today. The company is an interna- Bank will release their interest rate decisions on annual defence talks in Beijing this week. This will the Christmas rally occur this year?” tional leisure travel agency that operates aircraft Thursday. The previous BoE interest rate was 0.5 comes three months after the Obama adminis- and retail outlets and services the European and per cent. The ECB’s previous interest rate was tration decided it would sell $5.3bn in upgrades North American markets. 1.25 per cent, down from October’s 1.5 per cent. to Taiwan’s fighter jet fleet, despite China’s oppo- Monday 12th December, 17:30 – 18:30 sition. l Northgate will announce its interim results l The Bank of Canada, Reserve Bank of tomorrow. A vehicle rental business, Northgate Australia and Reserve Bank of New Zealand will l Conservative Anthea McIntyre starts work in Register now at: hopes the first half of its financial year has driven also release their interest rate decisions this the European Parliament this week, as the UK’s capitalspreads.com/seminar it to positive results. week. 73rd MEP. McIntyre will represent the West Midlands. Spread betting and CFD trading carry l Photo-Me International has its interim l The Statisches Bundesamt Deutschland will a high level of risk. announcement on Friday. Photo-Me snapped its release the consumer price index for Germany on l On Friday, Merkozy will present their plans for Capital Spreads is a trading name of London Capital way to success by manufacturing and selling Friday. This will reveal the country’s rate of infla- tackling the Eurozone crisis to EU leaders at a Group, which is authorised and regulated by the Financial Services Authority. coin-operated photobooths. tion. summit in Brussels. 27

Looking for grey clouds on the horizon Picture: GETTY WE MUST TURN ON THE PRESSES LIOR ALKALAY SENIOR RESEARCH ANALYST, ETORO

N AN earlier article I said that I made are unchanged. The US, no was disheartened by the chain of longer tied to the gold standard, disappointments that are perpet- through the Federal Reserve’s mone- Iuating the crisis of the Eurozone. tary policy, can print money as and Many analysts, and I among them, when needed. As it is now, the ECB is believe that the European Central standing idly by, watching the Bank has the ability to change histo- Eurozone economy rapidly deterio- ry, or is destined to repeat it. To quote rate for want of additional capital, the world renowned economist and and using the excuse that it is bound Nobel Prize recipient, Milton by the tenets of its mandate. Friedman, “Governments never learn. Only people learn”. On this CENTRAL BANK ACTION point, one can only hope that he is The recent actions by the world’s wrong. major central bank went some way to appeasing the market, but the eupho- LEARNING FROM THE DEPRESSION ria was fleeting. Markets need quick The Eurozone crisis has been drawing and decisive action; they are hopeful a great many parallels to the Great that the rescue of Italy and perhaps Depression, though some economists Spain, as well, will be sufficient to feel that that is unjustified. However, avert a crisis. If that is what they are quite a few believe that some of the hoping, they are making a fatal mis- blame for the Great Depression must take. be placed squarely at the feet of the Take the revised yield curve on central bankers, which steadfastly Italian sovereign debt as evidence of supported the gold standard. Back in how worried investors really are. the late 1920s and early 1930s, the Two-year bonds were trading at a majority of the worlds’ developed higher yield than the 10-year bench- economies were all tied to the gold mark notes; that means investors are standard, which meant that they already pricing in a default. Even a pegged their circulating currency to successful rescue doesn’t provide the actual amount of gold bullion assurance that Italy will never go they held in store. That limited their bankrupt at some point in the future. ability to increase the money supply, The government is in the process of ANALYSIS l FTSE Ichimoku cloud which in turn prevented them from instituting various reforms, many of 6,900 lowering interest rates. A liquidity which will be wildly unpopular with crunch ensued, and the banking sys- the Italian people, but are absolutely tem – such as it was—essentially col- necessary. But Italy won’t be the only lapsed. Eurozone member facing austerity; Finally, in 1933, President Franklin hardships will be prevalent through- 5,900 D. Roosevelt took the US off the gold out, and liquidity will be sharply standard, which gave the Federal squeezed. Just like in the 1930s. Reserve leave to print money, as and It’s quite possible that, without when needed. A few years after, as quick ECB intervention, the liquidity their economy worsened, the UK squeeze could hit the major indices 4,900 would similarly abandon the gold incredibly and protractedly hard. standard. Even now, Federal Reserve Historical data suggests that Chairman Ben Bernanke acknowl- investors could see a decline in global edges that it was a mistake for the US indices by as much as 50 per cent, government to have waited that long and which could last as long as three 3,900 to abandon the gold standard and to to four years. Interval: 1 week; Time: 5 years ignore the demand to increase the It can all be averted. Milton money supply. He is among many Friedman, considered one of the 2007 Apr Jul Oct2008 Apr Oct 2009 May Sep2010 May Oct2011 May Oct who believe that that was a major great thinkers of our time, said this, policy misstep. “The Great Depression, like most Clouds: “In ichimoku theory, all signals are not And that is where the European other periods of severe unemploy- created equal, and this is where the cloud comes Central Bank finds itself right now – ment, was produced by government into play.” Dolan explains that the strongest sell in a similar place to the Federal mismanagement rather than by any signal is generated when the downside crossover Reserve Bank of the twentieth centu- inherent instability of the private occurs while prices are below the cloud and the ry’s Great Depression, on the verge of economy.” Certainly, Ben Bernanke, WANT A BINARY strongest buy signal comes from an upside a major policy misstep that could who once offered an apology on crossover while prices are above the cloud. result in the twenty-first century’s behalf of the Federal Reserve for the PLATFORM WITH Except Chikou span, all the other lines also work Great Depression. Yes, it is a different needlessly enduring Great for traders as supports and resistance. Elliott century, but the mistakes being Depression, would agree. Winner of Capital Spreads explains that A VISUAL ichimoku helps traders identify support and resistance levels and indicate momentum at a COUNTDOWN quick glance. He adds: “It also shows future direction of a current trend using moving aver- TIMER? ages to show bearish and bullish crossover points.” Our new Binary platform has been INCREASING POPULARITY tailor-made for Binary traders to Since forming in Japan, ichimoku’s popularity be fast, simple and exciting. has dispersed across Asia. A strong easterly is blowing ichimoku westward, as over the years Trading Binaries is risky and not the indicator becomes increasingly popular for suitable for everyone. Don’t trade western traders. Spread Co’s Ian O’Sullivan says more than you can afford to lose. it is being used more and more in analyses and is mentioned increasingly on tweets as a point Experience Binary Brilliance of reference for trading levels. James Stanley, a trading instructor at DailyFX, the research arm Visit gftuk.com/binaries or freephone 0808 208 5192 of FXCM, thinks “ichimoku is the type of trading system that can really grow in popularity.” CD03UK.171.100711 It’s time to get your head in the clouds. 28 Wealth Management CITYA.M. 5 DECEMBER 2011

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T’S with a spirit of rebellion that three Above: Sin City as Starwood/W Hotel demographic of nis, shots, hot tubs – not for the faint-heart- girlfriends and I sip G&Ts, descending sun goes down. young, affluent, groovy types. (Albeit ed.) over Las Vegas, the first leg of what we Right: The Hyatt with less boutiquey room numbers. This You need to give in to Las Vegas to really Iplanned to be a mammoth 30th birth- Carmel Highlands, property has a staggering 2,995.) enjoy it, and so we do. High points include: day blowout road trip to the Grand Canyon, California. We pull up and the mood is set by a Cirque du Soleil, brunch at Simon and the Los Angeles, and the Big Sur. The trip is as convoy of white Hummers. Step inside Palms (staff wear pyjamas, its unlimited much about commemorating a key corner- and it’s all sculptural chandeliers, pulsing and you can upgrade this to include stone in our lives as having a holiday. music and atmospheric lighting. The booze); shopping on a grand scale at Travel changes when you hit this age, rooms are, as you’d expect, gigantic. The Crystals Mall, a giant architectural feat in you see. For better or worse – even if you are look is 1960s meets retro nautical meets itself which also boasts North America’s still single – your holidaying life changes Las Vegas glitz. There are two large flat- largest Louis Vuitton, finishing with forever as those who used to join on irre- screen TVs (you know, just in case), a kitch- rooftop drinks at Mix lounge at THEHotel. sponsible ventures suddenly have, well, enette, Jacuzzi bath, and a balcony. It’s all Add that to gambling (the Wynn), hotel responsibilities. The far-flung backpacking pretty sexy. spotting (we loved the Venetian Canal) and jaunts in cockroach-infested hostels dwin- Las Vegas, we discover, is all about the we’re ready to ship out. dle as a result, as do the bargain £190 daytime pool party. The Cosmopolitan has The Grand Canyon is next. With a brief weeks in Magaluf, and in their place come two pools, both with an array of luxurious detour to the Hoover Dam – which is 30 couples holidays and villas in the south of cabanas, day beds, cooling mists and bars. minutes from Las Vegas – we make it just France. An upgrade of standards, certainly, One is designed as a chill-out zone, while in time to catch a spectacular sunset. The but also rather sensible. With that in mind, the other features a stage for live bands, next day we dip in again for sunrise at five we opt for “UN-sensible” and there’s no bet- several open-air pool tables and gaming sta- AM (worth checking the time online, it ter place to do that than Las Vegas. tions. changes every day) before heading out. The Cosmopolitan, opened last year, is Ticketed “day clubs” – taking this to The drive from Grand Canyon to Los one of the newest hotels on the strip. It’s harder core territory – have also become Angeles is eight hours and not to be trifled part of The Marriot Group’s new boutiquey big news at all the major hotels. (Hugely with, but the scenery is genuinely breath- Autograph division: aimed squarely at the popular with visiting stag parties. Abs, biki- taking. The Mojave Desert is mountainous, TRAVEL NOTES BY ZOE STRIMPEL

Anantara opens luxe resort in Koh Phangan Rocco Forte’s first opening outside Europe: Abu Dhabi Abercrombie & Kent launch airport concierge North of Koh Samui, you’ll find Koh Phangan tucked away at the base of a Recently open, this 11-storey curved glass hotel is located near the exhibi- The new service operates in 200 airports worldwide: perks include being lush mountain. Set amid towering coconut palms and steps from idyllic tion centre and Yas Island. The 2,000sq m spa has separate male and met directly from the plane and guided through security, customs and Thong Nai Pan Noi beach, the resort has 44 private pool suites and villas female facilities, indoor swimming pools, traditional wet and dry immigration as well as luggage assistance, transfers in plus cars, city ori- and an open-air spa. Snorkeling, archery, elephant trekking, and herbal Hammam and more, and there are no fewer than seven restaurants and entation tours, and access to airport lounges even if a business or first steam sauna are among other activities. anantara.com bars in-house. Opening offer from $330 p/n. www.roccofortehotels.com class ticket is not held. www.abercrombiekent.co.uk. CITYA.M. 5 DECEMBER 2011 31

Monica, then it’s off up the pacific highway. It’s difficult to exaggerate the beauty of Highway 1, from the surfers that hug the Malibu coast at sunset to the winding traverses of the arid, and vast – like driving on the moon. Above: the Grand Big Sur with vast expanses of blue ocean, Meanwhile trucks, freight, and passing Canyon. cliffs and gleaming sunlight. Harley Davidsons imbue the whole experi- We spread the journey over a few days to ence with a sense of real Americana. Inset left: the rooftop make the most of the central coast. First It’s also the perfect endurance test before pool at the Four up is Santa Barbara, an artsy seaside town arriving at The Four Seasons Beverly Hills, Seasons Beverly Hills. that makes a great spot for boutique which turns out to be actual Los Angeles Right: one of the pools shopping. Next it’s Pismo Beach – less paradise. With elegant palm trees, striped at the Cosmopolitan chichi, more red-neck. We hit the local loungers, fountains and topiary, the hotel in Las Vegas. dive bar Harry’s for a night of beer, pool, oozes quintessential Beverly Hills glamour. and karaoke and stay in a cute boutique We step out of our giant rental SUV into its motel, The Cottage Inn, by the Sea. serene palm-treed drive and staff greet us – The next day it’s Hearst Castle, the magically – by name. The rooftop pool has sprawling mansion built high on the hills and balconies overlooking the views of the Hills and even has an open-air of San Simeon by publishing magnate ocean. The mood, meanwhile, is alluring- stretch of private residential land, which gym. The rooms are plush and tasteful William Randolph Hearst, and then we ly cosy. Live jazz plays and billowing takes you through some of Carmel’s pret- with all the puffy bathrobes and luxe toi- hit the road again. leather sofas are placed in front of roar- tiest coastal spots. As a final stop, we visit letries you could wish for. The service is Big Sur, a 90-mile stretch of road that ing fires and candle-lit mantle pieces. (I nearby Monterey’s world-famous also second to none. We love the hotel’s wraps the California coastline, is what feel like I’m in a Michael Bolton music Aquarium, which features a series of jaw- complimentary Bentley car, which will driving was invented for. Our car winds video – but in a good way.) dropping exhibits and live sea life shows. take you anywhere within a two mile up and down, with hills to the right, and The hotel has been designed as a series We find ourselves acting like excited chil- radius. dramatic cliffs and ocean to our left. The of spread-out modern wooden cabins dren, which makes an apt conclusion to We opt for dinner at The Bazaar by Jose highway was built in the 1930s as part of integrated subtly in to the hillside. The the trip. Our childhood, our twenties – Andres at the SLS Hotel in West Hollywood Roosevelt’s New Deal program and some rooms feature king size beds, gargantuan and indeed those dodgy Magaluf half- (ultra-modern, and very “El-Ay” tapas) and of the most spectacular parts are the pic- Jacuzzi baths and working fireplaces and board deals – may have passed, but it will feast on deconstructed Caesar salads and ture-postcard bridges that cross the are connected by wooden walkways with always be there, even if it’s relegated to a olive foam martinis. The next day we go to coast’s deeper indents. outdoor hot tubs and communal fire pits different time entirely. Rodeo Drive, before Grauman’s Chinese We reach The Big Sur Hotel – Hyatt dotted in between. We hit the hotel’s Theatre; the Hollywood sign and – deter- Carmel Highlands – at dusk. The hotel, Pacific view restaurant and indulge in Rooms at the Cosmopolitan Las Vegas start at mined to spot a celebrity – lunch in the sat high on the hills, offers brilliant views California steaks and red wine before bed. $168, www.cosmopolitanlasvegas.com. Rooms at Chateau Marmont Hotel (Success! Katy of the coastline, now brooding in the blue Carmel (a chocolate box town with art the The Four Seasons, Beverly Hills, start around Perry sits next door). light with blustery winds. Inside the galleries and coffee shops) will be too sac- $400. www.fourseasons.com. Rooms at the The There’s just enough time to take in the main lobby, the bar and restaurant fea- charine for some but is worth a visit. We Big Sur Hotel- Hyatt Carmel Highlands, from volleyball beach crowd and skaters at Santa ture stunning floor-to-ceiling windows take in the nearby iconic 17 Mile Drive, a £255, www.hyatt.com

EATING, DRINKING & SHOPPING: | LV, LA AND BIG SUR

lLAS VEGAS Puck’s famed steak restaurant at The Palazzo -Shopping: Melrose Avenue, The Grove (A-listers and the marina with views to the Santa Barbara mountains -Cirque du Soleil: Acrobatics, drama and jaw dropping www.wolfgangpuck.com, and El Segundo, a fabulous Abercombie-style shoppers). www.thegrovela.com in the distance. www.brophybros.com stunts. From £70. www.cirquedusoleil. Mexican restaurant where they make the guacamole in -Culina, The Four Seasons: The freshest cut fruit; organ- -Mo’s Steakhouse Barbecue, Pismo Beach: Prime ribs, -Crystal’s Mall: Is it a Getty museum? No, it’s a mall – front of you with pestle and mortars. ic muesli, waterfalls and palm trees make this a serene authentic hickory barbecue, juicy steaks- it’s a hit with and a fairly stonking one at that. Let loose with your www.elsegundosol.com brunch spot. www.culinarestaurant.com the locals for a reason. www.smokinmosbbq.com credit card. www.crystalsatcitycentre. -Drink: Mix Lounge, THEHotel, Madalaybay.com -The Getty Museum: Perched high on this hill, it’s worth -Hearst Castle, San Simeon: In its heyday this mansion -Day Clubs: Hedonism by day. The Marquee, MGM it for the views of Los Angeles alone. Modernist archi- entertained the who’s who of Hollywood. The blue-tiled Grand, the Encore hotels and many others stage ticket- l L0S ANGELES tecture and world-famous gardens add to its splendour. Art Deco pool is a must-see. www.hearstcastle.com ed venues. Observe the dress codes – they’re strict. -Bazaar at SLS: Worth it for the foie gras lollipops alone. www.getty.edu -17 Mil Drive: Winding the Carmel coastline with views www.marqueelasvegas.com www.thebazaar.com of the Sequoia’s and beyond. www.pebblebeach.com -Eat: There are lots of great restaurants in Las Vegas. -Chateau Marmont: Celebs and moderately priced food, lTHE COAST, BIG SUR, AND CARMEL -Monterey Bay Aquarium: Sharks, whales, and squid the We like STK at The Cosmopolitan, The CUT, Wolfgang in a grand setting. www.chateaumarmont.com -Brophy Bros, Santa Barbara: Fresh rustic seafood on size of your head. www.montereybayaquarium.com ADVERTISEMENT FEATURE

32 Lifestyle CITYA.M. 5 DECEMBER 2011 Turn your travel dreams into gold The American Express® Preferred Rewards Gold Card lets you explore a world with fewer boundaries

ith the New Year just around the corner, now is the perfect time to start thinking about Wwhere 2012 will take you. If your resolution is to discover new places – be it the south coast of England or South America – the Preferred Rewards Gold Card from American Express can make your getaway even more rewarding. To help make your travel dreams a reality, the points you earn by using the Card can be redeemed for flights, hotels, gift experiences and lots more. New Cardmembers will also receive a special added bonus to get that trip on track. Apply now and you’ll receive 20,000 Membership Rewards® points simply by spending £1,000 in your first three months of Cardmembership. That’s enough for two complimentary return flights to some of Europe’s most exciting cities*. Cristóbal which overlooks the town. Wherever your next trip takes you, While you’re there, try a cup of mote be it a far flung adventure or a chic city con huesillo, a concoction of wheat and escape, it’s important that you tailor it peaches, which makes for a delicious your way. That’s why the Preferred sundowner. Rewards Gold Card gives you the flexibility to transfer your reward MARSEILLE, FRANCE points to over 10 of the world’s major Representing France as European frequent flyer programmes. That’s not Capital of Culture in 2013, Marseille is all; you can also convert your rewards one of the most exhilarating cities in into stylish hotel stays across the world. France. Explore the crooked, narrow American Express is making it even streets of the Quartier du Panier, the easier to earn rewards faster with the oldest part of the city where the Greeks Card. You will double your points on built their temples. On the eastern virtually all travel related spend edge of the city is Parc Borély, a including flights, hotels, trains, cruises peaceful oasis boasting a beautiful and car hire. Plus, you’ll receive double lake, botanical garden, stunning rose points on practically all purchases garden and 18th-century Château. And while you’re abroad - so the things you if food is your thing, try to get up early buy will pay you back. enough to catch the renowned daily And there’s no limit on the points seafood and fish market at the Vieux you can earn and your points never Port. For a different angle on the city, expire, so this is one Card that’s worth visit the Arab quarter and wander past its weight in gold when it comes to locals selling spices and fresh almonds making those inspiring encounters a in bulk in the rue d'Aubagne. reality. Main picture: Marseille Harbour. Inset: Titanium Tower, Santiago, in front of the Andes. Picture: GETTY Whether you’re going global or planning something a little closer to home, here’s some inspiration on If you’re looking for a more rewarding travel experience, visit amex.co.uk/gold must-visit destinations for the year ahead. REWARDING TRAVEL SANTIAGO, CHILE Wedged between the snowy Andes and ENJOY THE EXPERIENCE virtually any travel purchase on your Card up to l Double points on virtually all purchases while you’re the sea, Santiago is an electrifying mix l of glitzy skyscrapers, picturesque open Transfer points to over 10 major frequent flyer three months after the date your transaction is abroad. spaces, renovated Beaux-Arts programmes. charged to your Account. l Double points at major supermarkets and petrol neighbourhoods and blocks of galleries l Two complimentary annual visits to more than 350 l Peace of mind with Travel Inconvenience stations in the first year of Cardmembership. and cafes clustered around the soaring Insurance**, Travel Accident Insurance** and Global l Enjoy a welcome bonus of 20,000 points by financial district. If you’re looking to airport VIP lounges. sample the culinary scene, Astrid and l Redeem points for flights, hotel stays, Eurostar Assist® Services. spending £1,000 on your Card in the first three Gastón Acurio is well worth a visit for travel, car hire, cruises and more. months of Cardmembership. its traditional Chilean sea bass and l Book travel through American Express Travel and REWARD YOURSELF l Spend £15,000 or more during the year and earn an Patagonian lamb. The charm of the city is also visible via its long boulevards, pay for it with points. l Double points on travel-related spend, such as additional 7,500 bonus points when you renew your hillside lanes and leafy parks. Enjoy l With Tripflex™ you can use your points to pay for flights, hotel stays and car hire. Card. breathtaking views from Cerro San

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If you’d prefer a Card without any rewards, other features or a Cardmembership fee, an alternative option is available – the Basic Card. Terms and conditions apply. The Preferred Rewards Gold Card is offered by American Express Services Europe Limited. Registered Office: Belgrave House, 76 Buckingham Palace Road, London SW1W 9AX. American Express Services Europe Limited is authorised in the United Kingdom by the Financial Services Authority under the Payment Services Regulations 2009 (reference number 415532) for the provision of payment services. 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victory at Goodison Park. for the latter stages of the Europa the last 32 of the Europa League on little of it.” EVERTON A 15th-minute goal from Robert League is first class,” he said. Thursday evening. Defender Johnny Heitinga came O Huth, the defender diverting Dean “We have had a dip of form, which Everton manager David Moyes, closes to equalising in the dying Whitehead’s shot past Tim Howard most clubs do, and we have shown a meanwhile, criticised referee Lee stages but could only make faint con- STOKE CITY from close range, was the decisive lot of character and spirit the last Mason but admitted his team’s fifth tact with a whipped left-wing cross 1 moment in a game of few chances. week and the result on Thursday home defeat was not solely attributa- and his glancing header skipped But neither a lack of entertainment against Kiev was a fantastic result for ble to the official. harmlessly wide. ▲ FOOTBALL nor an injury to goalkeeper Thomas us. This was a real battling perform- “I thought the referee had a poor Before the match both sides paid Sorensen could spoil a satisfactory ance against a good Everton team.” game,” Moyes. “It is not the reason for their tributes to former Wales manag- STOKE manager Tony Pulis toasted a afternoon for Pulis, who saw his side Stoke had lost all previous fixtures our loss – far from it because that was er Gary Speed, who died last week, perfect week after following up climb to eighth. that followed this season’s down to our inability to make and with the ex-Blues captain’s father Europa League qualification with a “It has been a great week for the Continental away trips, but ended take [chances]. But there was a lot Roger among those present for a second consecutive Premier League club. To get six points and to qualify that run yesterday, having reached going on in the box and we got very minute’s applause. Schwarzer: Wolves make Tiredness is Sunderland no excuse

▲ FOOTBALL pay penalty BY FRANK DALLERES FULHAM goalkeeper Mark Schwarzer has warned his team-mates that fatigue will not be an acceptable like for however many minutes here. excuse if their winless run continues. WOLVES Martin is a pal of mine but I didn’t The Cottagers host Liverpool 2 want to do him any favours.” tonight in the Premier League, seek- Sunderland now lie 17th, just one ing their first victory in five matches SUNDERLAND point above the relegation zone, but and their first domestic triumph 1 could have climbed as high as 14th since October. had Larsson converted from the spot Thursday’s Europa League defeat at ▲ FOOTBALL to put them two goals ahead in the FC Twente was their 27th match of an BY FRANK DALLERES 72nd minute. already gruelling campaign that The Sweden midfielder made the began in June, but veteran Schwarzer WOLVES manager Mick McCarthy most of a touch from Jody Craddock is in no mood for self-pity. delighted in ruining his good friend to swallow dive into the area, but was “When people ask me about the Martin O’Neill’s day, as his battling not as successful with his kick, national team and the amount of side deepened the woes the Northern Wolves goalkeeper Wayne Hennessy travelling and the number of games Irishman is poised to inherit. saving smartly low to his left. that we play, for me it’s all about a Two goals from Steven Fletcher Sunderland caretaker manager mental approach and a mindset,” said cancelled out Kieran Richardson’s Eric Black justifiably called it “the piv- the 39-year-old. thumping opener in a match that otal moment”. “You’ve got a long time to recuper- hinged on a controversial penalty Emboldened, the home side surged ate after you’ve finished playing. won and then missed by to the other end where Matt Jarvis When you talk about the demands of Sunderland’s Sebastian Larsson. delivered an in-swinging cross from the English Premier League, yes they O’Neill, appointed Black Cats man- the left that Wes Brown misjudged, are tough. But you’re playing in one ager on Saturday, officially takes over allowing Fletcher to power a header of the best leagues in the world and today but was in the stands at down and past Kieren Westwood. do you expect any different?” Molineux to see his new team slump Eight minutes later Fletcher scored Fulham are likely to be without to a fourth defeat in seven games. his second of the match, and his 10th Damien Duff, after the Irishman was McCarthy said: “I’m just glad I’ve in 15 league games, sweetly volleying injured in Holland last week, while made his job harder for him on low past Westwood with his left foot Liverpool will have to field a replace- Monday morning. I’m thrilled that after a touch from Jamie O’Hara that ment for midfielder Lucas Leiva, who he’s got a harder job than it looked prompted accusations of handball. Fletcher took his tally to 10 goals in 15 Premier League games Picture: ACTION IMAGES is out for the season. Dubai showdown on cards as SPORT | IN BRIEF Brazil hero Socrates dies means to justify their defeat.” Russia FOOTBALL: Former Brazil captain won last year’s vote to host the 2018 Socrates died yesterday, aged 57, after tournament, with Qatar controversially an intestinal infection. The elegant mid- awarded the 2022 World Cup. McIlroy closes in on Donald fielder, who played in the 1982 and 1986 World Cups, was admitted to the inten- O’Sullivan knocks out Davis sive care unit of a Sao Paulo hospital on SNOOKER: Ronnie O’Sullivan beat Steve Friday. The ex-Corinthians, Botafogo, Davis 6-1 in a first-round clash of former ▲ GOLF Donald, who ended 10 shots adrift in know.” McIlroy, 22, chipped in from a Fiorentina, Flamengo and Santos player champions at the UK Championships in the Nedbank Golf Challenge yester- greenside bunker at the 18th to card a suffered a stomach haemorrhage in York. World No1 Mark Selby eased into BY FRANK DALLERES day in South Africa, finishes outside final-round 65 and finish 12 under August caused by alcohol abuse. in 2004, round two with a 6-0 drubbing of Ryan NORTHERN Ireland’s Rory McIlroy the top nine. par, two clear of Frenchman Gregory aged 50, Socrates made headlines by Day and will play Marco Fu next, after he piled further pressure on European “It meant a lot knowing that I had Havret. aggreeing to a one-off appearance for beat Stuart Bingham 6-4. Tour leader Luke Donald and ensured to go out there and play well to keep Sweden’s Peter Hanson was a fur- non-league side Garforth Town. a nailbiting climax to the season by myself alive in The Race to Dubai, ther shot adrift, while England’s Ian Pattinson shines on Test debut winning the UBS Hong Kong Open probably to keep second place in the Poulter was one of three players tied Blatter aims fire at English CRICKET: Seamer James Pattinson took yesterday. World Rankings. To produce the sort for fourth on eight under. FOOTBALL: Fifa president Sepp Blatter 5-27 on his debut as Australia beat New McIlroy’s two-shot victory at of golf I did today was very pleasing,” US PGA Tour winner Donald, mean- has renewed his attack on his English Zealand by nine wickets in the first Test Fanling means he can deny Donald said US Open champion McIlroy. while, ended five under par on his critics, claiming they are bitter at the in Brisbane. Pattinson, younger brother the honour of becoming the first “That was one of the goals going return from a five-week break, finish- failed bid to stage the 2018 World Cup. of former England bowler Darren, man to officially top the US and out today, to win this tournament ing seventh at Sun City, where fellow “They thought that football should have claimed a triple-wicket maiden as the European money lists in the same sea- and keep myself in with a shout next Englishman Lee Westwood retained come home; the World Cup was theirs by tourists slumped to 28-5, and although son at this week’s Dubai World week. his title at a canter. right,” Blatter said. “When they came Dean Brownlie’s 43 hauled them to 150 Championship. “That’s very dependent on what Westwood could afford a one-over- with David Beckham, Prince William and all out, Australia reached their target of To do so he will have to win the Luke does because he’s got such a big par final round of 73 and still finish Prime Minister Cameron, they were cer- 19, despite the early dismissal of Phil lucrative season-ending spectacular lead. If I can somehow get myself into 15 under, to stay third in the world tain of winning. They got two votes. Hughes, with one day to spare to take a in the Middle East and hope that contention next week, you never rankings behind Donald and McIlroy. Since then, they have looked for every 1-0 series lead. CITYA.M. 5 DECEMBER 2011 Sport 35 McCall not Results 98I:C8PJGIL< 8jkfeM`ccX%%%%%%%%%%%% '  ' DXeLk[%%%%%%%%%%%%%%%%%%%%%% ( ( Ruthless Quins warm 8kk1+'#',* Afe\j)' 9cXZbYlie%%%%%%%%%%%%%% )  + JnXej\X%%%%%%%%%%%%%%%%%%%%% (  ) impressed PXblYl)'#+,#,.#/) g\e  C`kX*, 8kk1)*#'/' Dffi\-- DXe:`kp%%%%%%%%%%%%%%%%% (  , Efin`Z_%%%%%%%%%%%%%%%%%%%%% '  ( 8^l\if*) Dfi`jfe/( EXji`,( up for European test by sloppy Kfli\PXpX-/ 9Xcfk\cc`// Af_ejfe0' 8kk1+.#)'( E\nZXjkc\%%%%%%%%%%%%% '  ' :_\cj\X%%%%%%%%%%%%%%%%%%%%%%% ( *  ;if^YX*/ Saracens  BXcfl/0 WASPS 8kk1,)#*', Jklii`[^\0' 16 HGI%%%%%%%%%%%%%%%%%%%%%%%%% (  ( N\jk9ifd%%%%%%%%%%%%%%%% '  ( ?\c^ljfe)' Cfe^/( HARLEQUINS  8kk1(.#)0' 22 SARACENS Kfkk\e_Xd%%%%%%%%%%%%%% (  * 9fckfe%%%%%%%%%%%%%%%%%%%%%%%% '  ' 15 9Xc\. C\eefe,' ▲ RUGBY UNION ;\]f\-' 8kk1*,#/0- LONDON IRISH N`^Xe%%%%%%%%%%%%%%%%%%%% '  ' 8ij\eXc%%%%%%%%%%%%%%%%%%%%%% )  + BY FRANK DALLERES 11  8ik\kX)/  M\idX\c\e)0 HARLEQUINS captain Chris Robshaw ▲ RUGBY UNION  >\im`e_f-( declared his unbeaten side ready to 8kk1(0#)/' mXeG\ij`\./ test themselves in a double-header P; Gkj Wallace maintained the south Irish. DXe:`kp%%%%%%%%%%%%%%%%%%%%%%%%%(+ () ) ' +/ (* *, */ Londoners’ flawless start to the cam- Fly-half Owen Farrell kicked five DXeLk[%%%%%%%%%%%%%%%%%%%%%%%%%(+ (' * ( *( (* (/ ** Kfkk\e_Xd%%%%%%%%%%%%%%%%%%%%%(* (' ( ) )0 (- (* *( paign and kept them nine points penalties to edge out the Exiles, for :_\cj\X%%%%%%%%%%%%%%%%%%%%%%%%%%%%(+ 0 ( + *( (. (+ )/ clear of champions Saracens in the whom Tom Homer and Daniel 8ij\eXc%%%%%%%%%%%%%%%%%%%%%%%%%%%%(+ / ) + *' )* . )- Premiership. Bowden kicked penalties and David E\nZXjkc\%%%%%%%%%%%%%%%%%%%%%%(+ . , ) (0 (, + )- Four-time European winners Paice scored a late try to secure a los- C`m\igffc%%%%%%%%%%%%%%%%%%%%%%%%(* - , ) (. () , )* Jkfb\%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(+ , * - (+ )* $0 (/ Toulouse are the next threat to Quins’ ing bonus point. 8jkfeM`ccX%%%%%%%%%%%%%%%%%%%%%(+ * . + (- (/ $) (- perfect record, but yesterday’s hard- With a high-profile Heineken Cup ; Gkj brace of penalties from No10 Nick Mike Brown scored Quins’ second try Picture: ACTION IMAGES Irish head coach Toby Booth admit- Jflk_Xdgke%%%%%%%%%%%%%%%%%)' (* * + +) )( )( +) Robinson. ted the clinical kicking of Saracens N\jk?Xd%%%%%%%%%%%%%%%%%%%%%)' () + + *- (. (0 +' The leaders found another gear Tom Varndell, but they were kept at had proved the difference, but called :Xi[`]]%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' (' . * *+ )) () *. D`[[c\jYifË%%%%%%%%%%%%%%%%%%%)' 0 / * )+ (. . *, after the interval, however, with arm’s length by Robinson twice hit- for the officials to work better to C\\[j%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' (' + - *, )/ . *+ Brown collecting his own chip before ting the woodwork. TOP FOUR improve what he depicted as the lot- 9i`^_kfe%%%%%%%%%%%%%%%%%%%%%%%%%)' 0 , - )* )( ) *) touching down and then Wallace Wasps boss Dai Young, who paid TEAM PLD W D L F A PTS tery of scrummaging. 9cXZbgffc%%%%%%%%%%%%%%%%%%%%%%%)' / - - *( ), - *' latching onto a Danny Care kick to tribute to ve te ran England hooker Harlequins 10 10 0 0 295 167 43 “Right now, it’s a bit like those ?lcc%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(0 0 * . )( )( ' *' score and close in on a 10th league Steve Thompson, who retired on numbers that come out on balls late C\`Z\jk\i%%%%%%%%%%%%%%%%%%%%%%%%%)' / , . ). )) , )0 Saracens 10 8 0 2 218 163 34 9liec\p%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' / * 0 *( *' ( ). win. There were still twists to come, Saturday afte r just one game fo r the on a Saturday night,” said Booth. “I I\X[`e^%%%%%%%%%%%%%%%%%%%%%%%%%%%)' . - . )* )) ( ). Hopper’s sin-binning preceding a club, said: “I think you could see why Exeter 10 5 0 5 195 202 25 believe there is a degree of ‘guessti- :ipjkXcGXc%%%%%%%%%%%%%%%%%%%%%(0 . - - (0 (/ ( ). Wasps revival marked by tries from they are top. They had three opportu- mation’ when it comes to scrums and 9Xiejc\p%%%%%%%%%%%%%%%%%%%%%%%%%(0 . - - ), ), ' ). full-back Hugo Southwell and wing nities and they took them all.” London Irish 10 4 1 5 253 227 25 who is in the right and the wrong.” 9`id`e^_d%%%%%%%%%%%%%%%%%%%%(. . , , )* (0 + )- ;\iYp%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' . + 0 )+ *' $- ), G\k\iYfif%%%%%%%%%%%%%%%%%%%%%)' . * (' *0 */ ( )+ NXk]fi[%%%%%%%%%%%%%%%%%%%%%%%%%%)' - - / )( )0 $/ )+ Gfikjdflk_%%%%%%%%%%%%%%%%%%(0 - , / )) )) ' )* D`ccnXcc%%%%%%%%%%%%%%%%%%%%%%%%%%%)' , . / )* )+ $( )) 9i`jkfc:`kp%%%%%%%%%%%%%%%%%%%%)' , , (' )' *( $(( )' @gjn`Z_%%%%%%%%%%%%%%%%%%%%%%%%%%%(0 - ) (( )- *0 $(* )' Nadal signs off with Davis Cup victory Efkkd=fi%%%%%%%%%%%%%%%%%%%%%%)' - ) () (/ *, $(. )' ;feZXjk\i%%%%%%%%%%%%%%%%%%%%%%)' + + () (- ** $(. (- :fm\ekip%%%%%%%%%%%%%%%%%%%%%%%%%)' ) . (( (. *( $(+ (* =8:LGJ<:FE;IFLE; ▲ TENNIS enjoy today,” he said. “Today is one of winner Del Potro went on the offen- COMPLETE RESULTS | DAVIS CUP 9Xie\k%%%%%%%%%%%%%%%%%%% '  ( D`ckfeB\pe\j;fej%% (  * the most emotional days of my sive in the first set and, despite being 9iX[]fi[%%%%%%%%%%%%%%%% )  * 8=:N`dYc\[fe%%%%%%%% '  ( BY FRANK DALLERES 9i\ek]fi[%%%%%%%%%%%%%% '  ' Ni\o_Xd%%%%%%%%%%%%%%%%%%%% (  ( career. After such a difficult year, this broken at the first opportunity, then Friday :_Xickfe%%%%%%%%%%%%%%%% '  ) :Xic`jc\%%%%%%%%%%%%%%%%%%%%%% '  ' AN EMOTIONAL Rafael Nadal hailed was a spectacular finale to the season. roared through six straight games. Rafael Nadal (SPA) beat Juan Monaco :_\cdj]fi[%%%%%%%%%%%% (  ( DXZZc\j]`\c[%%%%%%%%%%%%% '  ( the best crowd of his life after a typi- “To win a final this way is Nadal arrested his slump by taking :fcZ_\jk\i%%%%%%%%%%%%% '  ' Jn`e[fe%%%%%%%%%%%%%%%%%%%% '  ( cally gutsy victory over Juan Martin very special. We are very the second and third sets, before a (ARG) 6-1, 6-1, 6-2 :iXnc\pKfne%%%%%%% )  , I\[Yi`[^\%%%%%%%%%%%%%%%%%% '  ' ;X^I\[%%%%%%%%%%%%%% '  ( NXcjXcc%%%%%%%%%%%%%%%%%%%%%%% '  ( del Potro earned Spain a third Davis grateful to all the peo- fourth that swung this way and that David Ferrer (SPA) beat Juan Martin del >Xk\j_\X[%%%%%%%%%%%%% '  ( KXdnfik_%%%%%%%%%%%%%%%%%% (  ) Cup in four years, to the delight of a ple of Spain. It was the until the tie-break, which the Potro (ARG) 6-2, 6-7 (2-7), 3-6, 6-4, 6-3 C\pkfeFi`\ek%%%%%%%% '  ' >`cc`e^_Xd%%%%%%%%%%%%%%%%%% (  ( 22,000-strong support in Seville. best atmosphere I have Spaniard swept Clkfe%%%%%%%%%%%%%%%%%%%%%%% (  ) :_\ck\e_Xd%%%%%%%%%%%%%%% ) + Nadal had to come from a set down experienced in my through to seal the tri- JXc`jYlip%%%%%%%%%%%%%%% '  ' >i`djYp%%%%%%%%%%%%%%%%%%%%% ' ' Saturday J_\]]Lk[%%%%%%%%%%%%%%% '  * KfihlXp%%%%%%%%%%%%%%%%%%%%%% (  ) to defeat Argentinian No1 Del Potro 1- career.” umph. J_\]]N\[%%%%%%%%%%%%% '  ( 8c[\ij_fk%%%%%%%%%%%%%%%%%% '  ' 6, 6-4, 6-1, 7-6 (7-0) and gain the hosts The decisive match was Spain’s victory David Nalbandian and Eduardo Schwank J_i\njYlip%%%%%%%%%% '  ) Ifk_\i_Xd%%%%%%%%%%%%%%%%% (  ( an unassailable 3-1 lead with one sin- played out in a raucous underlined their (ARG) beat Fernando Verdasco and Jflk_\e[%%%%%%%%%%%%%%% '  ( Fc[_Xd%%%%%%%%%%%%%%%%%%%%%%% ( ( gles match to spare. setting, with the recent dominance Feliciano Lopez (SPA) 6-4, 6-2, 6-3 JkfliYi`[^\%%%%%%%%%% '  ' Jk\m\eX^\%%%%%%%%%%%%%%%%% '  * Afterwards the world No2, who has Argentinian contingent in of the competition, PL< Spain’s defence next year in order to to the degree that they since the turn of Rafael Nadal (SPA) beat Juan Martin del ?\Xikj%%%%%%%%%%%%%%%%%%%% '  ( JkAf_ejke\%%%%%%%%%%%%%%%% (  ) play at the London 2012 Olympics. were asked to quieten the century. Potro (ARG) 1-6, 6-4, 6-1, 7-6 (7-0) B`cdXiefZb%%%%%%%%%%%% (  ) 8Y\i[\\e%%%%%%%%%%%%%%%%%% '  ' “I want a coherent calendar. So down by the umpire. Argentina, mean- IXe^\ij%%%%%%%%%%%%%%%%% )  ) ;le]\idc`e\%%%%%%%%%%%%%%% (  ( next year, since it’s an Olympic year, Knowing only victory while, acquired JkD`ii\e%%%%%%%%%%%%%%%% (  ( @em\ie\jj:K%%%%%%%%%%%%%% (  ) Result P

MCILROY CLOSES IN ON NO1 DONALD HONG KONG WIN SETS Sport UP SHOWDOWN: P34 Manchester CRUEL FOR CATS | O’Neill watches as Sunderland crash at Wolves rivals thrown together by FA Cup draw

▲ FOOTBALL amid serial financial catastrophes. BY FRANK DALLERES Resurgent Arsenal, back up to fifth in the table after a horror start to the A SIMMERING rivalry that has already campaign, entertain Leeds, who they delivered fireworks this season is needed a replay to overcome last sea- poised to be reignited after son, in a repeat of the 1972 final. Manchester City were drawn against High-flying Tottenham, who sit neighbours Manchester United in the third following a run of six consecu- FA Cup third round. tive league wins, will be confident of Holders City, who thrashed United negotiating the visit of Cheltenham, 6-1 at Old Trafford in October, could despite the League Two side’s strong now inflict more misery on them by form. dumping them out of the FA Cup at Fulham meet League One’s run- what is the first hurdle for top-flight away leaders Charlton in a London teams. derby, while QPR travel to MK Dons, Sir Alex Ferguson’s men will view it West Ham are away at Sheffield as an ideal chance to avenge their Wednesday and Liverpool will meet humiliation, with the bonus of ensur- Southend or Oldham at Anfield. ing Roberto Mancini’s upstarts can- not complete a domestic treble. THIRD ROUND DRAW | HIGHLIGHTS City currently top the Premier League and last week reached the Manchester City v Manchester United semi-finals of the Carling Cup, a com- Chelsea v Portsmouth petition United bowed out of after a shock home defeat to Championship Arsenal v Leeds United side Crystal Palace. Tottenham Hotspur v Cheltenham Town The clash between England’s two Fulham v Charlton Athletic leading teams is the standout fixture Milton Keynes Dons v Queens Park Rangers from the draw and one of only two Sheffield Wednesday v West Ham United all-top flight games, the other being Blackburn’s visit to Newcastle. Liverpool v Southend Utd/Oldham Ath Chelsea manager Andre Villas-Boas Everton v Tamworth SUNDERLAND’S new manager Martin O’Neill (inset) received an unwelcome reminder of the scale of the task he will inherit when he offi- will enjoy his first taste of FA Cup Bristol Rovers v Aston Villa cially takes over this morning when his side lost yesterday at Wolves. The Black Cats, including Nicklas Bendtner (pictured above) squan- action when they host Portsmouth, dered a lead and missed a penalty before collapsing to two Steven Fletcher goals, leaving them 17th and one point above the Premier winners in 2008 who have since League’s relegation zone. O’Neill, who revealed he was childhood Sunderland fan, said: “We had a great season last season and a wee bit dropped into the Championship Ties to be played weekend of 7/8 Jan of a disappointing start this time, but we hope with a little bit of luck we can turn things around.” MATCH REPORT: P34 Pictures: PA Tiger’s back: Woods wins I may have made £35k toilet quip, admits Easter

for first time in two years ▲ RUGBY UNION know this.” The infamous comments emerged in the Rugby Players’ ▲ GOLF two holes to play, Woods made back- Australian Masters in Melbourne on ENGLAND and Harlequins star Nick Association’s review of the dismal to-back birdies to card a final- 15 November 2009. Days later alle- Easter admits he may have been the World Cup, which was compiled BY FRANK DALLERES round 69 and finish on 10 gations of infidelity emerged, player who uttered the notorious line using anonymous feedback from the FORMER World No1 Tiger Woods under par, one stroke precipitating a scandal that “That’s £35k down the toilet” follow- majority of players but subsequently finally ended the longest barren spell better than his playing irrevocably changed his ing the World Cup quarter-final exit leaked to a national newspaper. of his distinguished professional partner. squeaky-clean image. to France in October. Senior players came in for heavy career last night when he won the “It feels awesome, Those personal prob- But the No8 insists that even if he criticism, with some, such as captain Chevron World Challenge – more whatever that is,” said lems and injuries had did make the remarks, they would Lewis Moody, accused of letting com- than two years after his last victory. Woods (right) on end- hampered him since, but have been meant “facetiously” and mercial interests interfere with the Woods, who dropped outside the ing his 749-day wait for signs arose in recent weeks that money played no part in his tournament. Easter, who did not play top 50 in a desperate spell that fol- a title. “It feels great. It Woods was rediscovering the motivation at the tournament. as Quins maintained their lowed the break-up of his marriage, was a lot of fun coming touch that brought him 14 “I don’t specifically remember say- Premiership lead at Wasps yesterday, showed flashes of his old self to beat down the stretch. Zach put a Majors. He helped the American ing it but it’s possible I did, especially added: “I can’t understand whoever fellow American Zach Johnson in lot of pressure on me. Then I made team win the Presidents Cup, with if a number of players have said so,” reported this would believe this was California. two good putts.” his 4&3 win over Aaron Baddeley rem- said Easter. “It is the kind of facetious part of my motivation.” Trailing Johnson by one shot with It was Woods’s first win since the iniscent of vintage performances. thing I say and people who know me QUINS SWAT WASPS ASIDE: P35