T OCOST BILLIONS TOCOST CHARITYRAIDSET CHARITYRAIDSET really ill-thought through andwill through really ill-thought Baker Tilly, said: “The restrictions are centive Budget.” announcedinthe disin- counterruns to financials the tion ofa‘BigSociety’andcitizenships who seeneedsinsociety... Thepromo- sector generosity ofthose hasbeenthe charitable tions andbedrockofthe Black said: founda-“For centuriesthe pounds ayear. reduce donationsby billionsof of adrive to closetaxloopholes,would policy,£25bn, saidthis whichispart income, whichever ishigher. or 25percentofanindividual’s if taxreliefiscappedat£50,000ayear, from major donorswillbeseverely hit 10of every charitybossessaidgifts asurveyafter showed almost nineout CouncilandUniversities Arts the UK said hewas“sympathetic” to concerns. VinceCable while businesssecretary Tilly spoke outagainst proposal the Baker Dolphin andaccountingfirm revolt. senior MPsfed agrowing political last night,asaseriesof City warned good causesbillionsofpounds,the relief oncharitabledonationswillcost GEORGE planto Osborne’s captax City warns ofdamageto goodcausesasCablecallsfor arethink ISSUE 1,611 FRIDAY 13APRIL2012 George at Bull,seniortaxpartner Head ofcorporate Charlotte affairs Brewin, whichmanages morethan isalsounderpressurefrom Osborne Investment manager Brewin FTSE 100 BY PETEREDWARDS ▲ 5,710.46 +75.72 DOW SONY’SRISE ANDFALL ANDFALL SONY’SRISE Business secretary Vince Cablehasagainvoiced doubtsaboutgovernment economic policy

have a lot of unintended It is effects... wrong to encourage people [to donate] on the one hand and then brand one hand gen- and then on the erous donors as tax avoiders.”

as David Davis, former shadow the home secretary and a senior Tory back- home secretary bencher, called for while a a re-think spokesman for Cable, a Liberal Democrat, have said: “Concerns been raised with ministers,raised with including Vince, by universities and he’s sympathetic to ▲

The political fall-out grew yesterdayThe political fall-out grew MAKER OF THE ICONIC WALKMAN ISFLOUNDERING 12,986.43 +181.04 NASDAQ BUSINESS WITH PERSONALITY WITH BUSINESS ▲ 3,055.55 +39.09

those concerns.”those

another coalition u-turn, after changes after coalition u-turn, another on policies including sentencing dis- counts for forests guilty pleas, the sell- off and cuts to school sport. off

at think tank Newat think Philanthropy Capital, said: “The government has aeamsae–don’t confuse phi- made a mistake – lanthropists with tax dodgers.” with lanthropists

The row has sparked predictions of

Iona Joy, head of charity effectiveness

When chief Treasury secretary When chief Treasury www.cityam.com See Page 13 £/$ 1.59 unc £/€ 1.21 unc

Danny Alexander was asked if there would cap he told on the be a u-turn the BBC “everyonethe should pay a decent proportion of their income in of their decent proportion tax”.

however, saying coalition would the work charities and philanthro- with pists to cap does not have ensure the a “significant impact”“significant on bodies which depend on large donations.

▲ door open to the a changeHe left ▲ ALLISTER HEATH: €/$ 1.31 unc Page 2 WESAEKIT SWEEPSTAKE NATIONAL GRAND

GETTY Google Plus. socialnetworklaunched the mobile phonebusinessand $12.5bn takeover ofMotorola’s executive. hehasledthe Since then year aschief sincehereturned quarter.during the company’s ofthe income cent – or 11 per accounted for $1.15bn – same periodlast year. Britain compared $6.54bninthe with of2012, months three first the to websites, partner hit$8.14bn in innovative approach,” headded. Sergey andme,onour team,term betonthe especially you areplacinganunusuallong explained. “Byinvesting inGoogle, control over Google’sdestiny,” Page management team retained longterm bythe ensuringthe freedomtomaintain the focus on Ourgoalwastostructure. created adual-classvoting company’s mainsourceofincome. the search advertising rates – 12worrying percentdropin expectations, butalsorevealed a year-on-year exceeded that $2.89bn (£1.8bn), a60percentrise companythe of announcedprofits Page andBrinto retaincontrol. have novoting rights,enabling under aseparate ticker andwill new stock willbelisted onNasdaq own. they The Google sharethat of newstock for eachexisting company.the and Sergey Brinretaincontrolover Pageto ensureco-founders Larry announced atwo-for-one stock split INTERNET giantGooglelast night profits surge share splitas Google plots See Page 33 The newscameasPage marked a Net revenue, excluding fees paid “When we went public,we The surprisedecisioncameas Investors willreceive oneshare BY JAMES WATERSON 30/01/2012 till26/02/2012 is98,573 Certified Distribution FREE FRIDAY 13 APRIL 2012 2 NEWS To contact the newsdesk email [email protected] Government wrong to demonise generous philanthropists

T has become increasingly difficult ous part is that the philanthropist is thought it would be good PR for the Apparently, it feels that some EU- to understand what the coalition not better off – he or she is worse off. government ought to be taken out based charities are dodgy, but that EU Igovernment is up to. Take its EDITOR’S His or her take-home pay is down, not and fired – immediately. rules mean it cannot do anything decision to demonise those who up. That is because he or she is being There is a good case to be made that about this. If so, why doesn’t it say so? donate large amounts to charity, LETTER generous, not engaging in a cynical in a drastically reformed system, with It’s like the pasty tax: The government depicting them in a grossly unfair act to defraud the taxman. Is this gov- much lower tax and spending as a felt that it had to hike taxes on pasties manner as tax avoiders who should ernment financially illiterate? share of GDP, there would be no need to avoid an EU ruling that could have be ashamed of themselves. This is an ALLISTER HEATH Charity relief works differently to for any reliefs. I have long supported a forced it to cut Vat on other warm astonishingly stupid and nasty thing some other tax reliefs: by putting flat tax where – above a generous per- food, such as fish and chips, and hand to imply. The government claims that money in their pension, which sonal allowance – everybody pays the over billions in compensation. But if some charities are dodgy. But if this the 50p tax rate and including remains their property (though they same, low rate on all labour and capi- the EU is the problem why doesn’t it is true then the obvious answer is to employee national insurance) and cannot touch it until they retire) tax- tal income. But that would be dramat- tell anybody? No wonder Ukip is surg- get the Charity Commission to do its keep £480k. But if they gave £100,000 payers end up paying substantially ically different to what is on offer ing in the polls (it is at 11 per cent in job more thoroughly, not demonise of this away, they would be able to less tax than they would otherwise today, and would trigger an explosion one), and Labour is substantially all donors. reclaim £37,500 in tax relief from have paid, and are therefore better in wealth creation and charitable ahead. When it comes to own goals, What really angers me is that the HMRC and end up paying £482,500 in off, post-tax, than if they kept the donations. The government, however, the charity row is even more stagger- coalition is misrepresenting how tax tax and keeping £417,500. In other cash in their bank accounts. But char- is not implementing such a reform – ing than the coalition’s vicious relief works – it is implying that it words, they would lose £62.5k in take- itable donations require a real sacri- it is merely misrepresenting the “green” plan to penalise those seek- helps donors line their own pockets. home pay and be able to allocate fice, regardless of tax relief. These motives of those building the Big ing to build conservatories. What, But the facts are clear. A wealthy indi- some of their tax bill to a cause close attacks on generous folk – including Society it once purported to believe in exactly, is this government up to? vidual who earned a £1m bonus to their heart (the charity would also many who work in business and the in a desperate bid to raise more tax. would ordinarily pay £520k in tax be able to reclaim some extra money City – are truly astonishing. Whoever Another explanation for the coali- [email protected] (assuming the bonus is wholly within from HMRC). But the crucial and obvi- came up with such a strategy and tion’s folly is doing the rounds. Follow me on Twitter: @allisterheath Investor fears IN BRIEF OECD predicts decades of North Korea launches rocket force Italian n North Korea launched a rocket late last night, although it is believed to have crashed into the sea. The launch, debt yields up which took place at 11.39pm UK time, was officially to carry a weather BY TIM WALLACE austerity lie ahead for UK satellite but has drawn international criticism and sabotaged a food aid deal with the United States. Critics say ITALIAN bank stocks dropped BY KATIE HOPE the Unha-3 rocket would enhance sharply yesterday after renewed Pyongyang's ability to build a missile worries about the government’s THE UK faces decades of more aus- capable of delivering a nuclear ability to pay its debts pushed up terity in order to bring its spiralling warhead. state borrowing costs. debt under control and offset any How much consolidation is needed? Greece’s economic nightmare impact on growth, influential think % of GDP continued as official data showed tank the Organisation for Economic 12 Report heralds US bank shake-up unemployment increased to a Cooperation and Development n 10 US banks have been told to split the record high of 21.8 per cent in (OECD) has warned. roles of chairman and chief executive January, and youth unemployment The Paris-based group calculates 8 in an attempt to avoid the threat of hit 50.8 per cent. annual spending cuts and tax rises another financial crisis in a report by Meanwhile UBS analysts warned amounting to eight per cent of GDP 6 the Group of Thirty, an international that the crisis is one of solvency a year – an estimated £120bn annu- forum of regulators, central bankers and so cannot be solved alone by ally – for the next forty years are 4 the liquidity pumped into the required by the UK in order to and private bank bosses. The report blamed “pervasive failure of system by the European Central reduce debt to what it calls a “pru- 2 Bank. dent level”. governance at all levels” as a large contributor to the 2008-2009 The Italian government raised The OECD recommends that all its 0 €2.88bn in three-year bonds at a 34 developed country members NDL GBR IRL LUX USA NZL JPN financial crisis. yield of 3.89 per cent – sharply up slash debt to 50 per cent of GDP by GETTY on the 2.76 per cent at a similar 2050 – giving them room to The OECD’s report provides support for chancellor George Osborne’s deficit cuts programme Brazil bid for BG stake in Comgas auction last month. respond to future crises and pre- n Brazil's Cosan is in talks to buy Shares in UniCredit dropped 3.4 venting debt restricting growth – a 0.5 per cent, it warns of a potential and Greece but also for those coun- per cent after the auction, but level which it deems happens at 70 “snowball” effect whereby an increase tries running large structural deficits British BG Group's stake in the gas picked up later as markets around per cent of GDP. in rates will see an equivalent jump in such as the UK, Ireland, New Zealand distributor Comgas, in a deal that the world jumped on hopes that Its analysis indicates the UK will debt servicing costs and a consequent and the US,” it says. would further diversify the Brazilian the Fed may boost its quantitative have to suffer far worse cuts than increase in public debt levels, if action However, the OECD warns that cuts energy group. BG and Cosan easing program. many of its Western counterparts is not taken. should be implemented gradually so confirmed yesterday their New York Fed boss William with only Japan, New Zealand, the Average interest payments for OECD as not to retard growth. negotiations over BG’s 60 per cent Dudley said the economy is not yet US, Luxembourg and Ireland facing member countries were 2.5 per cent Its recommendations for reducing stake in Comgas, Brazil's largest gas “out of the woods,” hinting that more severe cuts. of GDP in 2007, but the think tank debt levels include public health distribution company, without the central bank could step in It warns that the problem will be says this could almost double to four reform and reductions in public sec- mentioning the value of the deal. with more support if necessary. exacerbated as countries start to per cent by 2026. tor wages to bring them in line with Their statements followed a report by The Dow Jones rose 1.41 per unwind emergency measures put in “In the absence of corrective action, those in the private sector, as well as Brazilian magazine Exame that the cent, FTSE100 jumped 1.34 per place at the height of the financial higher interest rates could lead to sub- the introduction of a sales tax on companies were discussing the sale of cent and German DAX rose 1.03 crisis. In the UK, where interest stantial increases in debt, particularly financial services, and removing tax BG's stake for 2.5bn reais (£857m). per cent by the end of the day. rates remain at their historic low of in high debt countries such as Japan relief in some areas. WHAT THE OTHER PAPERS SAY THIS MORNING to be outlined next week by new chief executive Philip Clarke. The company is EU seeks new curbs on bonuses expected to scale back openings of big Lloyds to dump fund managers Royal Mail limits supply of stamps Hollande Attacks Sarkozy's Record stores and store extensions, focusing Lloyds Banking Group is dumping more Royal Mail is limiting the number of French presidential challenger François Bankers’ bonuses across Europe would be instead on smaller stores. The move is than half of its fund managers. Scottish stamps it supplies to retailers to ensure it Hollande attacked Nicolas Sarkozy's capped at no more than their fixed expected to prompt other supermarkets Widows Investment Partnership, which profits from record price rises later this economic record yesterday, after the salaries under strict new curbs sought by to follow suit, ending the so-called “race manages £143bn for savers and investors, month. High street chains and post offices President seized on Spain's rough ride in senior lawmakers in response to for space” among UK grocers. continued public anger over financial is shutting down a string of its regional said they were running out of stamps as financial markets to say a Socialist would investment desks. sector pay. EU parliamentarians are Ireland and France target Olympics people began stockpiling them. put France on the same track. drawing up new caps on bonuses to be Spanish Budget Law Progresses Ireland and France are luring teams from Flora’s cottage in Scottish hotel sale Temporary staff harm your health included in the latest bank capital rules. Spain's plan to toughen the central across the globe for pre-Olympics training Working with temporary staff harms your A cottage that was home to Flora government's control of regional finances camps. Swimmers from 13 countries have health and wealth and can drive down Tesco to focus on smaller stores MacDonald – the Jacobite heroine who passed its first legislative hurdle in a signed up to train at Ireland’s national permanent wages by 5 per cent, according helped Bonnie Prince Charlie escape parliamentary vote Thursday. It develops Tesco is poised to slow its store expansion aquatic centre and Pas-de-Calais, in to a new report from the National Institute following the Battle of Culloden in 1746 — budget guidelines that Spain last year in the UK as part of the strategic blueprint northern France, will host four countries. of Economic and Social Research. is up for sale. It is now a hotel. enshrined in its constitution. CITYAMCAREERS.com The new jobs website for London professionals FRIDAY 13 APRIL 2012 cityam.com NEWS 3 Boris Johnson Lehman fallout wants to take over Tech City earns £500m BY JAMES WATERSON BORIS Johnson will this morning launch a bid to take direct control of Tech City Investment Organisation, the development for PwC so far body responsible for promoting high-tech investment in East London, City A.M. can reveal. The mayor will also seek the

BY ELIZABETH FOURNIER will be recovered is predicted to come GETTY construction of a new science in at a maximum of £13.4bn, the Boris Johnson said that London should not tolerate intolerance institute in the Olympic Park and THE FALLOUT from the Lehman worst-case scenario would see just 28 seek to include a proposed cell Brothers bankruptcy has netted its per cent of claims returned to credi- therapy centre in the plans. administrator PwC almost half a bil- tors. “We are seeing incredible things lion pounds in fees since it was To date, only 2,372 of an estimated Mayor blocks anti-gay adverts starting to happen in Tech City appointed in September 2008. 5,350 outstanding claims have been and the area known as Silicon In a progress report released this submitted to Lehman Brothers Roundabout. But there has never morning, PwC said the total remuner- International (Europe) – the US bank’s appearing on London transport been a better moment for City ation paid since the start of the pro- principal UK trading company. Hall to take a strategic lead,” the ceeding had reached around £495m Though creditors have until 31 mayor is expected to say at this by the 12 March this year – with December to submit, they must meet MAYORAL Johnson used his position as morning’s InnoTech Summit. administrators billing almost 230,000 an earlier deadline to be in with a chairman of TfL to ban it from the Mike Butcher, co-founder of hours in the past six months alone. chance of receiving a payout this year. ELECTION capital’s buses. TechHub, a shared workspace near The latest update also gave the The news comes as US creditors of “It is clearly offensive to suggest Old Street roundabout, broadly clearest sign yet that European the bank were told it would start the BY JAMES that being gay is an illness that welcomed the news: “What we’re lenders to Lehman Brothers could first round of paybacks next week, WATERSON someone recovers from and I am talking about here is beating the see some of their money returned with a total of $22.5bn (£14.1bn) avail- not prepared to have that drum for technology in London – this year, with PwC saying it was tar- able for distribution. The figure BORIS Johnson yesterday blocked a suggestion driven around London bringing in investors and geting the first payments to cred- is significantly higher than Christian advertising campaign on our buses,” the mayor said. supporting the organic creation of itors before the end of 2012. the $10bn estimated last that promoted “gay conversion”, Labour’s Ken Livingstone backed companies in the area.” But just how much the month, when Lehman saying that London should be the mayor but added: “London is But he said that politicians administrators expect to recov- Brothers Holdings was offi- “intolerant of intolerance”. going backwards under a Tory should provide more incentives to er is still up in the air, with cially taken out of bank- The advert, funded by religious leadership that should have made invest in the district: “We would ballpark figures for the poten- ruptcy proceedings in the groups opposed to gay marriage, these advertisements impossible.” love to see this area given special tial total claims ranging from US and its winddown began. was due to appear on public buses Last night the religious groups status. There was disappointment £14.7bn to £47.9bn. during the next two weeks and responsible accused Johnson of that the Tech City area was not As the total Dick Fuld was chief exec declared: “Not gay! Ex-gay, post-gay censorship, adding that regulators made an enterprise zone.” amount that of Lehman when it folded and proud. Get over it!” had cleared the advert.

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UST six months after the customers, allowing the large acquisition, the Co-op would have a Lloyds has two choices. Sell to NBNK publication of the Independent BOTTOM incumbent banks to keep their combined 6.6 per cent share. And the (there are no other serious buyers) or JCommission on Banking’s final advantage. government, which owns most of flog the branches through an IPO. report, Sir John Vickers’ The bank that is being sold by Lloyds, was happy to see it go to a co- Neither option will satisfy Vickers’ recommendations on boosting LINE Lloyds, known as Verde, will only operative organisation. insistence that the new bank have a competitiveness are falling on deaf have a 4.6 per cent share, so the Alas, the Co-operative’s bid is in market share of over six per cent. ears. buyer would ideally have a market serious trouble. Talks with the FSA At any rate, the real reason banks Initially, Vickers recommended in DAVID CROW share of around two per cent. Enter are taking far longer than they are so uncompetitive lies in over- his interim report that Lloyds be The Co-operative, which was named should be, suggesting the City regulation. The rules surrounding made to sell “substantially” more down this recommendation after as the preferred bidder in December, watchdog is concerned about the Co- how much and what kind of capital than the 632 branches it is being being nobbled by the Treasury. He but whose offer now looks close to operative’s ability to pull off such a they must keep against every loan forced to put on the block to satisfy conceded that a sale of 632 branches collapsing. large acquisition. The group is are so onerous that it is virtually European rules on state aid. Only would be fine, but only if they were At the time, the Co-operative struggling to appoint a banking chief impossible to compete on price. then, said Vickers, would a credible sold to a bidder that already had a suited everybody. Lloyds wanted to executive while its supermarket The Vickers report, heralded as the “challenger bank” be created, with foothold in the UK banking market. sell the branches to someone who business is floundering. Yesterday, biggest shake-up of banking in a the strength to take on the Big Five: Unless the new bank had a six per already owned a banking network, we learned that Lord Levene’s start generation, has gone from a fudge to RBS, Santander, Lloyds, HSBC and cent share of the personal current because the sale would be less likely up NBNK, beaten in the first round, a white-wash. Barclays. account market, said Vickers, it to fall through. Vickers would be is back with a new bid. [email protected] In his final report, Vickers watered would struggle to attract new happy because, following the If Co-operative does walk away, Follow me on Twitter: @davidcrow83 Half a billion NBNK goes on property hit to Banesto profits offensive for BY JULIET SAMUEL

SPANISH retail bank Banesto was hit by a €475m (£392m) provision for bad real estate loans, it reported in its first-quarter results yesterday. Lloyds branches Banesto, which is mostly owned by Santander and is one of Spain’s biggest high street lenders, reported BY JULIET SAMUEL Co-op Group insists it has a plan for a halving in pre-tax profits to finding a CEO. €126m. That was above expectations NBNK Investments has leapt back into In its bid, NBNK, which recruited despite the massive property hit the fray by sending in a new bid for former Northern Rock chief executive and a further €366m writedown 632 Lloyds branches, as the deal to sell Gary Hoffman as its boss and has Lord from other bad loans. them to the Co-op appears close to col- Levene as chairman, boasted that it The bad loans will stoke fears that lapse. “has considerable regulatory, gover- Spain’s housing crisis is still crip- The bid, which values the package nance and management experience” pling its banks as stricter regulations of assets at between £1.5bn and £2bn, to get the deal done. One senior bank- force them to take further and fur-

is designed to make Lloyds think ing source called it “a board to die for”. GETTY ther writedowns on their toxic prop- twice about continuing with its strug- It offered to do the transaction as a Lord Levene’s buy-out vehicle NBNK is trying to claw its way back into the Lloyds deal erty books. gle to offload the business to the Co- demerger 100 per cent underwritten Banesto warned that there is op. The mutual has come under fire by NBNK, which is backed by institu- more to come: it said that it has for not yet having a chief executive or tions that include Invesco, Aviva, JP TIMELINE | LLOYDS BRANCH SALE now taken half of the property experienced management team in Morgan, F&C and BlackRock. writedowns required of it this year place to run the bank, although the The offer means that the sharehold- November 2009 regard for Vickers’ demands after the by new Spanish regulations, ers of Lloyds, 40 per cent of which is suggesting that further losses to the It emerged that the EU would force Lloyds Treasury made it clear it did not mind. Lloyds Banking Group PLC owned by taxpayers, could either take tune of half a billion are in the p to sell a large chunk of its business to 32.50 cash or shares in the new venture. September 2011 pipeline. 31.92 If the Co-op deal collapses, however, comply with competition rules following The ICB’s final report substantially Along with the losses from its 32.00 12 Apr Lloyds could continue preparing its its merger with HBOS. It set an end-of- watered down its demands. property book, Banesto’s overall 31.50 branches for a flotation alongside nego- 2013 deadline to complete a sale or float. December 2011 loan book deteriorated in quality tiations with NBNK because setting up April 2011 compared to the last quarter of 31.00 The Co-op was named as preferred bid- a self-standing payments system will be The Independent Commission on Banking der over NBNK, the only other bidder. 2011, with non-performing loans 30.50 required either way. NBNK said that it (ICB) said in its interim report that Lloyds (NPL) growing from 4.68 per cent to has FIS on board to help it do this. should “substantially enhance” its sale. March 2012 4.93 per cent. However, the bank 30.00 Lloyds is still in exclusive negotia- Lloyds admitted it will not meet its first said the outlook for the industry is tions with the Co-op but is close to a Summer 2011 quarter 2012 deadline for signing a con- worse still, with an average NPL rate 4 Apr 5Apr 10 Apr 11 Apr 12 Apr final deadline for closing the deal. Lloyds kicked off the sale with minimal tract with the Co-op. of 7.91 per cent. IN BRIEF

Portugal’s biggest UniCredit Santander gets renminbi licence ment bank to be combined with its busi- ness for smaller businesses, the Wall n Spain’s biggest bank has secured a Street Journal reported. licence to trade renminbi in China, mak- ing it the first Spanish or Latin American Sberbank mulls Denizbank bid bank to raise €1bn new chair bank to get permission to handle the Chinese currency. The bank said that the n Russia's top lender Sberbank is taking licence will boost its position as a another look at Denizbank, put up for BY JULIET SAMUEL investors for cash since 2008. BY JULIET SAMUEL provider of trade finance for exporters to sale by stricken Belgian lender Dexia. BES said that it has already and from China and will enable it to cap- Last year, Sberbank dropped out of the SHARES in Portugal’s biggest listed received indications of investor UNICREDIT, Italy’s biggest bank, ture growing trade flows between Beijing race for Denizbank, now worth $6bn, as bank plunged yesterday morning interest in taking up the rights from has named Giuseppe Vita as its and Latin America. The announcement it focused on integrating its acquisitions after it announced plans to raise up shareholders owning half of its new chairman, replacing outgoing coincided with a visit to China by bank of Russian brokerage Troika Dialog. But € to 1bn (£826m) to comply with capital, while the investment banks German chairman Dieter Rampl. chairman Emilio Botín. now that talks with Qatar National Bank national capital regulations. running the book have agreed to Vita, who is also the chairman of (QNB) over the sale of Denizbank have Banco Espirito Santo’s (BES) share take up another 50 per cent if Allianz in Italy, is believed to have Bank of America streamlines units stalled over price, Sberbank is keeping price closed down 10.5 per cent at investors don’t buy them. been chosen because of his long an eye on negotiations. "We are interest- just over €1, meaning it has now lost The aim is to push its core tier one career at German companies, n Bank of America has rid itself of one more than half of its value since the capital ratio up to 10.75 per cent, meaning he has good contacts in ed in entering the (Turkish) market and business unit to streamline its opera- are also looking at Denizbank. But we are start of 2012 and is worth €1.5bn. whereas it is now 9.2 per cent. Frankfurt. tions. The move merges its credit cards The new shares have been priced at Although EU authorities have only The change of leadership, which not in talks at the moment," a Sberbank business with its retail lending business, spokeswoman said. However, reports 39 euro cents each. demanded that banks bring the ratio will be voted on by shareholders in which could enable more cross-selling of The rights issue, which will over nine per cent, the Bank of May, comes after a turbulent rights suggested that QNB has raised its offer, cards to customers. Lending to large cor- meaning Sberbank could be left in the complete by mid-May, is the second Portugal has set a higher minium of offering by the bank early this year porates will also move from its invest- time the bank has tapped up ten per cent. that saw its value plunge. cold.

FRIDAY 13 APRIL 2012 6 NEWS cityam.com Goldman agrees to pay £14m fine to settle huddles charge BlackRock plans bond hub BY PETER EDWARDS clients, we want to give it to them,” nary Wall Street trading commis- BY HARRY BANKS not include any allegations of AMERICAN investment banks face a Richard Prager, a BlackRock manag- sions. BlackRock is awaiting approval insider trading. new threat to their profits as ing director and head of global trad- for the platform from the US US REGULATORS said yesterday “Despite being on notice from BlackRock plans to launch a trading ing, told the Wall Street Journal. Securities and Exchange Commission. that Goldman Sachs will pay $22m the SEC about the importance of platform that would cut out Wall He said it would fill a gap in the sup- The move comes after steady criti- (£14m) to settle civil charges over such controls, Goldman failed to Street. ply of market liquidity rather than cism of Wall Street by BlackRock chief allegations that it lacked adequate implement policies and The world’s largest money manager competing with or “cannibalising” US executive Laurence Fink. He has spo- policies to prevent its analysts procedures that adequately has devised a platform which would investment banks. ken out against the “spread” between from sharing non-public controlled the risk that research allow it to trade bonds directly with Yesterday a spokesman for the New a bond’s purchase and selling price information with Goldman traders analysts could preview upcoming the rest of its industry. York firm said the new platform is “an while last year he warned against and select clients. ratings changes with select traders The electronic trading hub would extension of BlackRock’s broader “turning our back” on the anti-Wall The charges stem from a and clients,” said Robert Khuzami, be run by its Solutions business, efforts to streamline trading and Street protests across more than 1,400 practice known as “huddles” at the SEC’s head of enforcement. BlackRock confirmed to City A.M. yes- access liquidity across various American cities. Goldman, which came to light Goldman agreed to pay the terday. It would give clients including means”. In January BlackRock posted a 16 per several years ago. Stock research penalty and revise its policies to sovereign wealth funds and other It would match buyers and sellers of cent fall in its fourth quarter profits analysts would meet traders to correct the problem. asset managers the opportunity to the same securities, known as “cross- as fees from investment advisory share their best trading ideas, A spokesman for the bank, trade in areas such as corporate ing trades” and BlackRock Solutions work fell away amid the global tur- which were then passed along to Michael DuVally, said Goldman bonds and mortgage securities. would charge a small fee for the serv- moil. It said net income dropped to preferred clients. The charges did was pleased to resolve the matter. “If there’s savings available to ice that would beat the price of ordi- $555m (£358.7m), or $3.05 per share. Banks €485bn short of Basel LEX VAN DAM capital targets The creator of the BY TIM WALLACE and the necessary capital will have to BBC’s hit show, Million be raised through asset sales, share Dollar Traders, will take THE WORLD’S largest international issues and cutbacks in loan issuance. banks need to shore up their balance Economists questioned whether this to the stage to share sheets to the tune of hundreds of bil- level of pressure on banks to delever- his insights on The lions of euros if they are to hit regula- age will benefit the industry and the tory targets to improve financial wider economy. Trading Battle - the stability, a report from the Basel “The extent of the regulatory common mistakes are Committee revealed yesterday. demands on the banking industry is The monitoring report also revealed already undesirably severe, and as the what kill you and how most banks fail to meet liquidity cov- Basel III deadlines approach, the pres- to stay in the game. erage ratio requirements, and overall sure can only intensify, particular in are €1.76 trillion (£1.45 trillion) short. Europe where banks have most to do,” However analysts warned the Basel said Jamie Dannhauser from Lombard III rules were pushing banks away Street Research. “These figures make from lending at the worst possible clear how much further the European time, taking credit away from firms banking sector is going to have to and consumers just when the econo- retrench in coming years.” my needs a boost from spending. The banks studied are also €1.76 tril- The study was based on June 2011 lion short of liquid assets. data from 103 international banks Only 45 per cent of banks meet or with at least €3bn in Tier 1 capital exceed the 30-day liquidity coverage plus 109 others. It showed the average ratio requirement, giving banks “a large bank has 7.1 per cent common huge mountain to climb” by the 2015 equity Tier 1 capital, exceeding the 4.5 deadline, warned Dannhauser. per cent minimum requirement. Banks are very heavily reliant on Come and join Lex van Dam and However, additional requirements, public debt to meet the liquidity rules including the capital conservation – 57.7 per cent of eligible assets are 30 other top speakers at a unique buffer and the surcharge for globally securities issued or guaranteed by sov- systemically important banks, push ereigns, central banks and other pub- trading conference from that requirement to seven per cent. lic sector entities. A further 27.6 per To hit that target, banks must raise cent is held in cash or central bank an additional €485.6bn before dead- reserves. lines, which range from 2015 to 2019. The Basel rules place great value on That huge gap compares with state-issued securities, deeming them €356.6bn pre-tax profits made by all of risk free, and thus stockpiling them is the banks surveyed in the twelve the cheapest way for a bank to build months before the data was analysed, up its levels of eligible liquid assets. 24TH MAY 2012 THE GRANGE HOTEL, TOWER BRIDGE IN BRIEF MF Global trustee to sue staff Man hires head of forex for AHL Secure your ticket today at n The trustee liquidating MF Global’s n Man Group has hired a foreign broker-dealer said yesterday he may exchange veteran for its $21bn (£13bn) bring civil lawsuits against some of the flagship fund AHL, as the hedge fund cityamactivetrader.com company's employees in connection with manager tries to revive performance at a massive shortfall in customer funds its key computer-driven unit. Ravi created in the days leading up to its Chari, who has worked for 12 years in collapse. Trustee James Giddens said he systematic trading at hedge funds, joins Introducing In association with Champagne reception sponsor may assert claims for breach of fiduciary Man from computer trading firm IKOS, duty and for violating rules governing where he headed its futures and foreign the segregation of client funds. Giddens exchange funds, Man said yesterday. He referenced “individuals at” MF Global's will work alongside David Denison, the parent company and its broker-dealer, current head of foreign exchange at but did not name potential targets. AHL, which employs around 130 people.

FRIDAY 13 APRIL 2012 8 NEWS cityam.com Aviva considering plans to sell Management shake £1bn US life insurance business up for DLA Piper BY JAMES WATERSON buyers could be put off from bidding sider any serious offer for any part of BY ELIZABETH FOURNIER Piper’s operations chief. because of the introduction of the the business, in our view a suitable The reshuffle will also see Asia INSURANCE giant Aviva is so-called Solvency II directive which offer is unlikely in the short-medium DAVID Bradley yesterday stepped Pacific and Middle East managing considering selling its US business, will require European firms to hold term,” he added. down as managing partner of law partner Alastair Da Costa step which is estimated to be worth more capital against their American Moss has a long-held aim to concen- firm DLA Piper, as part of a down with his role split into two around £1bn – but analysts say that businesses. trate its efforts on its 12 core management shake-up that will see separate positions. Sir Nigel regulatory conditions mean it may Barrie Cornes, an insurance analyst markets – including America – but several changes made to its Knowles, who will remain as struggle to dispose of the division. at Panmure Gordon says a disposal is faces pressure from shareholders to executive board. global managing partner and Chief executive Andrew Moss not sensible in the short term: “The improve results. Aviva USA specialises Bradley will return to fee- chief executive, said reportedly told an investor US operation has effectively been on in equity-indexed annuities, a busi- earning work as a partner in yesterday the changes conference that the company is the stocks for over two years, but ness that requires substantial the firm’s employment, would “bring a fresh open to offers for its American unit, Aviva would not consider letting it go amounts of capital. pensions and benefits group perspective to the firm”. which was acquired by his for an indicated 50 per cent discount Shares in the firm closed up less from 1 May, and will be predecessor for over £2bn in 2006. to the price that it paid for it in 2006.” than one per cent at 313.4p. replaced at the business by However potential European “Whilst obviously Aviva would con- Aviva declined to comment. Andrew Darwin, DLA David Bradley has stepped down as managing partner IN BRIEF John Mack joins LendingClub No China crisis n Former Morgan Stanley chief executive John Mack joined the board of LendingClub Corp yesterday. LendingClub said it picked Mack for his experience in the bond market. Mack has a long history on Wall Street, for Ashmore where he joined Morgan Stanley’s bond department in 1972, eventually becoming president of the bank in 1993. LendingClub, which is not yet profitable, targets consumers who use their loans given at a lower rate to pay as assets swell off credit card debt. Since its launch in 2007, it has originated more than BY PETER EDWARDS themes have subsequently delivered $580m worth of loans. positive investment performance in

EMERGING markets fund manager what has been a strong third quar- GETTY KKR invests $65m in China deal Ashmore has shrugged off fears of a ter,” it said. It’s estimated that Trainline could be sold for up to £400m n slowdown in China as it yesterday Holdings in equities, debt and local KKR & Co agreed yesterday to invest posted a boost of more than nine currencies contributed most to the $65m (£40.7m) in China Cord Blood per cent to its assets in its third increase in assets, Ashmore added, Corp, making it the global private quarter. saying the group’s performance was Bidders close in on Trainline as equity firm’s first healthcare Finance director Graeme Dell told in line with expectations. However it investment in China. KKR’s investment City A.M. there could be pitfalls in experienced “modest net outflows” will give the firm about 24 per cent of Chinese growth – factory output fell in equities and blended debt prod- rail travel sees surge in demand China Cord Blood on a fully diluted there last month – but said the “size ucts during the period. basis. China Cord Blood, with a market and dynamic” of the economy con- Numis analyst David McCann rated cap of about $200m, would use the tinue to make it attractive. Ashmore a “hold” and said future BY PETER EDWARDS network have reached more than money to expand in China, analysts say. “We remain positive for the long growth in earnings “may not be as 1.4bn, the highest for a peacetime term outlook for China.” strong” as the growth potential of A SERIES of private equity houses year since the 1920s. Emerging markets boost L’Oreal Dell said overall Ashmore had assets under management. including Bridgepoint and Exponent was close to engaging invested more in buying assets, par- Shares closed up 0.9 per cent. Blackstone are considering a bid advisers from Rothschild to sell n French cosmetics maker L'Oreal ticularly corporate debt, in November for ticket agency Trainline in late 2010, according yesterday reported 6.4 per cent like- and December last year and reaped Ashmore Group PLC 389.40 thetrainline.com. to speculation, although it never for-like revenue growth for the first the benefits in the quarter. 395 12 Apr The bookings website, currently confirmed its intentions. quarter, lifted by big-spending Assets under management rose 9.1 p owned by British buyout firm The website was set up in 1999 consumers in emerging markets and per cent to $65.9bn (£41.3bn) in the Exponent, is up for sale with first- and was bought by Exponent from renewed appetite for luxury goods. first three months of this year. 385 round bids expected to be in by Richard Branson’s Virgin for Emerging markets reported €2.09bn Investment performance added later this month. £163m in July 2006. in sales for the quarter, eclipsing for $4.3bn to assets, complementing a 375 It could go for up to £400m London-based Exponent also the first time Western Europe, which net inflow of $1.2bn in new money. after environmental concerns and owns bed retailer Dreams and veg- reported sales of €1.95bn. L’Oreal said “Consistent with Ashmore’s long 365 record high petrol prices etarian foods brand Quorn. it was confident that it would standing investment approach of triggered a surge in demand for Yesterday Exponent, outperform rivals in 2012. adding risk during periods of mar- rail travel in recent years. Bridgepoint and Blackstone ket volatility... all investment 4 Apr 5Apr 10 Apr 11 Apr 12 Apr Annual journeys on the rail declined to comment. Police watchdog slams links to HK Exchange taps News Corp as lawsuits reach US banks to finance bid

BY HARRY BANKS clamour over phone hacking Fedorcio, the MPS media chief, over BY HARRY BANKS bank nor the amount. centred on Murdoch’s News their relationship with Neil Wallis, Analysts value LME, the world’s SENIOR London police staff linked to International, the British a former deputy editor at the News HONG Kong Exchanges and largest market for industrial the News Corp phone hacking scan- newspaper arm of his News Corp of the World, the Murdoch tabloid Clearing Ltd (HKEx) is in talks metals, at between £500m to dal showed poor judgement, took empire, senior people at the force at the heart of the phone-hacking with banks to help finance its bid £1.5bn. bad decisions and got too close to appeared “to have been oblivious to furore.The IPCC concluded that to take over the London Metal LME has short-listed three other journalists working for Rupert the perception of conflict”. there was no evidence of corruption Exchange (LME), a sign that the suitors – CME Group, NYSE Murdoch’s newspapers, an independ- “It is clear to me that the but ruled that both men had world’s most valuable bourse is Euronext and InterContinental ent watchdog said yesterday. professional boundaries became breached internal policies. aggressively pushing ahead with a Exchange (ICE) – with 7 May set as While the Independent Police blurred, imprudent decisions taken The IPCC comments come after bid. the deadline for second-round Complaints Commission (IPCC) and poor judgment shown by senior British lawyer Mark Lewis, who has Sources close to HKEx yesterday bids. rejected allegations of corruption police personnel,” IPCC deputy filed several phone hacking suits in said it was seeking to raise up to HKEx is the world’s largest involving two of the top personnel chairman Deborah Glass said in a the UK, said yesterday that he is $3bn (£1.88bn), in what would be bourse by market capitalisation, at the Metropolitan Police (MPS), it statement. taking legal action in the US on the first-ever acquisition loan with a value of $18bn (£11.3bn) was highly critical of their and The IPCC’s report follows behalf of three alleged victims of taken by the bourse. and sitting on cash and short- senior colleagues’ media investigations into John Yates, the phone hacking by the News of the However as the loan term investments of HK$30bn relationships. country’s former top counter- World. The move marks the first discussions were not public, the according to Thomson Reuters The IPCC said despite a growing terrorism officer, and Dick legal action in the US. sources would not reveal the data. 4S YOUWON’TFINDABETTERPRICE WITH YOURNETWORK

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Apple,theApplelogoandiPadaretrademarksofAppleInc,registeredintheUSandothercountries.TMand©2010AppleInc.Allrightsreserved.Promiseonlyappliestopricespublisheddirectlybythenetworks.Identicalphoneandtariffcombinationonly,throughthesamechannelofpurchase(bychannelwemeanretailstore,phoneoronline).AppliestonewandupgradingPay Monthlycustomers.Promiseconditionaluponproofofnetworkofferbeingprovidedandacceptedatthepointofpurchase,orupto14daysthereafterthroughthesamechannelofpurchase.ComparisontoO2,Vodafone,Orange,3andT-Mobilechecked10/04/12forPayMonthlypricing.PriceonPayMonthlymeansphonecostonthespecifiedtariff.1TheAppleiPhone4S16GBisonly availableat£31permonthwithanupfrontphonecostof£29onT-Mobile.Paymonthlypricesubjecttocreditcheckandminimumtermof24monthsonselectednetworksandtariffs.Someexclusionsapply.Seewww.carphonewarehouse.comfordetails. of Wessex bid Total pullsout directors’ pay nose overs its BP gets bloody licences closer to homein barrels ofoil,as well asonshore hold asmuch onebillion the Zaedyusproject,whichcould against the10pashareoffer. said thatshareholderswere Wessex, afterthecompany’sboard had decidedagainstpursuing stake. which italreadyhasa25percent the coastofFrenchGuyana, in off greater shareofahugefield The oilgiantwas lookingtogain a oil explorerWessex Exploration. out ofa£70mbidfor AIM-listed FRANCE’S Total yesterday pulled wins £50mDominicancontract Aggreko upbeat on2012 asit 440 460 480 500 540 first opportunity to opportunity displayfirst anger over meeting, wheninvestors hadtheir sameasduring2011’salmost the votes. their withholding 1.7 afurther percent tion plans,with ers voted remunera- against firm’s the Gulf ofMexicooilspill. strategy twofirm’s years the after voiced aboutthe continuedconcerns shareholders atitsannualmeeting directors’ pay packets yesterday, as abloodynoseoverBP suffered its provides generators to cover (£50m) over two years. Republic valuedatabout$80m Dominican contract inthe announced a100 megawatt (mw) growth in 2012. putting itontrack for further year, ofthe months three first the 20percentin risen by morethan yesterday underlying revenue had temporary power provider, said AGGREKO, world’s the biggest 520 10 The numberofopposingvotes was Around 11.8 percentofsharehold- BP PLC 12 Mar Wessex owns1.25percentof The oilmajorsaidyesterday it BY HARRY BANKS BY MARIONDAKERS The FTSE 100The FTSE company, which Separately, company the BY HARRY BANKS p NEWS 15 Mar 20 Mar 26 Mar 29 Mar 3 Apr 444.85 12 Apr 5 Apr 10 Apr light BP’starsandsoperations. stagingcentre after a“die-in”to high- meetingatLondon’sExCel out ofthe 30 percentbelow pre-spilllevels. shareprice,however,The firm’s isstill 2014 newupstream projects. through by per centmoreoperating cashflow “major spill. wake crisis” ofthe in the endured whatDudleysaidwasa dend payments in2011, having 99.75 percentofshareholders. neration, wasbacked for re-electionby prompted rebellionagainst the remu- whose pay £4m packet ofmorethan unchanged fromayear ago. leaving hisapproval rating broadly Svanberg’s re-electionto board, the planned $38bnassetsales. BP hasnow ofits made$23bnworth operations to Gulfclean-up. fundthe yearassets this andslimmeddown its hastaken a“hardlook”atits firm the Gulfspillon20April2010.the appraisal well.” Zaedyus inafurther participation requirements, including for funded allcurrent fully November 2011,thecompanyis in (gross) ofadditionalfunding that,havingraised £12m confirms takeover speculation. has alsobeenthesubjectof Petroleum,which listed Northern joint venture withfellow AIM- througha the FrenchGuyana field might consideratthislevel.” forsupport anyoffer whichTotal and was inadequatetosecure their thecompany share undervalues approach of10penceperordinary board thatthe areofthe view takeover rules. to revisetheiroffer under group withadeadlineofMonday last month,leavingtheFrench unfavourable reactionofinvestors Hampshire. made anencouraging to start the contract valuedatabout£50m. upcoming LondonOlympics a trading wassupported by the expectations. Italsosaidthe it reported 2011 aheadof profits projects securedsinceMarch,when 150 afurther mwof new with at itsIPPbusinessremainedstrong, quarter. first cent inthe (IPP) businesseshadrisen21 per and International Power Projects events, itsLocal saidsalesatboth orpowerelectricity shortfalls live A handfulofprotesters were dragged Dudley saidBPplansto generate 50 anddivi- to returned profit The firm But chiefexecutive BobDudley, Just over seven percentvoted against Carl-HenricSvanbergsaid Chairman Wessex added:“Wessex The companyholdsitssharein In astatement,Wessex said“The Wessex toldTotal aboutthe “International Power Projectshas orderintakeAggreko addedthat turn acorner after record highs IEA says oilmarket isstartingto Bob Dudley saidthefirmisontrack to boost operating cashflow by 50percent by 2014 growth for the year forgrowth the asawhole”,itsaid. means we expectto deliver strong year andahealthy prospectpipeline stockpiles quieter ofoilduring the perday.barrels quarter first by around1.1mthe curbing outputinOECDnations in Seaandelsewhere North in the year, despite unplanned stoppages by per day 0.7mbarrels during the fundamentals”. tidefor market ofthe turning yesterday, it“detects addingthat a International EnergyAgency said timesince2009,the first outstripped rising demandfor the GROWTH inoilsupply has 2,200 2,120 2,240 2,160 Countries arebolstering their Global supply isexpected to grow 4 Apr Aggreko PLC BY MARIONDAKERS p 5Apr FRIDAY 13APRIL2012 10 Apr 11 Apr 2,226.00 12 Apr 12 Apr Kurdistan exploration fields Genel gives positive outlookon offset any hittooffset globalsupplies. have pledged to boost output to tough US. sanctionsfrom the faceofincreasingly supplies inthe month. during the day inMarch,down 50,000barrels per which produced3.3mbarrels due to continued worries over Iran, prices to year easemuchduringthe the year. record highsof$128 seenearlierin yesterday, down near- fromthe at around$119.50 abarrel IEAnoted. the spring months, working interest.Itwas Government hasa20percent Kurdistan Regional interest inTawke whilethe for drilling. exploration well was ready expectations. is fulfilling the Tawke inKurdistan field operator intheregionDNO, operations inKurdistan. upbeat statementonits Hayward, yesterday gave an executive isformer BPbossTony GENEL Energy, whosechief However, US andSaudiArabia the It hasthreatened to cutoff However, IEAdoesnotexpect the futureswereBrent crude trading Genel hasa25percent It saidthePeshkabir-1 According tothefirm’s BY JOHNDUNNE

GETTY remain key issues.” stocks arestilland factthat low look closely, aroundIran concerns iswellthat supplied...butifyou appearstoreport present amarket Paribas, said:“At aninitiallevel the commodity strategist atBNP crude. aboutreplacing Iranian concerns remain supplied market, there initially suggestsreport awell oilreport. added initsmonthly remain,”uncertainties IEA the high solongasgeopolitical priceswillremain possibility that from itswells Gulf spillisnot Shell says new according toplanandwe areon the Tawke continue field day attheendoflastyear. producing 65,000barrelsofoila worth ofoil. worth estimated to bearoundsixbarrels’ sheen,whichis cause ofthe work USregulators the with to find between oilwasfound. whichthe interest Ursaproject, inthe Marsprojectanda22.7percent the update. afternoon at £21.25 yesterday following the settled to closedown 0.75percent market. the through exactly two years agosentachill Deepwater Horizonspillalmost was spotted, spectreofBP’s the sheen the caution”after “prudent around onemileby ten miles. sheen,whichmeasures of the taking placeto source establish the areashowedthe nosignsofaleak. allitsoperations in that afternoon Gulf platforms, andsaidinthe watersheen onthe nearoneofits in aspecialist vessel to assessa stock. companythe helpedstabilise the Mexico, before reassurances from Gulfof possible oilspillinthe per centyesterday onworries over a SHELL’S sharesfell asmuchfour track to increase capacity to track toincreasecapacity 100,000 barrelsofoilperdayby the endof2012.Peshkabir-1is “We cannotdiscount the Gareth Lewis-Davies,Gareth energy Analysts whilethe saidthat Hayward said:"Operations on Shell saiditwould continueto BP owns a28.5percentstake in But Shell’sLondon-listed Ashares Despite Shell’spromiseof Flights over scenewere the also 100-listedThe FTSE oilmajor sent AND MARION DAKERS BY JOHNDUNNE the first well inourextensivethe first exploration programme of seven highimpactwells that we aredrillingover the next18months,and we lookforward tothe completion ofthe testing programme.” Hayward isconfident. Genel chiefexecutive Tony cityam.com FRIDAY 13 APRIL 2012 cityam.com NEWS 11 £274m bid for BA looks to cut UK firm Umeco

BY JAMES WATERSON

BRITISH aerospace parts supplier 1,200 jobs as it Umeco is set to be bought by American firm Cytec after the board recommended a £274m takeover bid. The offer of 550p a share pushed Umeco shares up 48 per cent yesterday and Cytec said it had integrates BMI commitments from the top three shareholders to vote in favour of the deal. The Leamington Spa-based BY MARION DAKERS job losses are deeply regrettable but firm, which counts Boeing, Airbus inevitable.” and BAE Systems among its BRITISH Airways said yesterday The firm said in a statement that it Guy Parsons, (above) chief executive of Travelodge, will be replaced by Grant Hearn customers, also works for Formula 1,200 jobs were under threat as a will look into placing some staff in One teams. result of plans to integrate the the east Midlands in jobs with other recently-purchased airline BMI into local industrial firms such as Rolls- its Heathrow operations. Royce. Travelodge chief Guy Parsons The Unite union said it was “very It added that BMI’s planes will be saddened at the scale of the job repainted to carry BA’s livery. March boon for losses being proposed” as BA soaks BA won regulatory approval for its to be replaced by former boss up 42 of BMI’s lucrative landing £172m deal to buy BMI from slots at Britain’s busiest airport. German carrier Lufthansa on 30 hedge funds The brunt of the job cuts will be at March. BY KASMIRA JEFFORD the business once again.” BMI’s head office at Castle As part of this clearance, European Echoing comments made by BY HARRY BANKS Donington and at regional airports. authorities ruled that BA must sell GUY PARSONS has stepped down as Phillip Clarke at Tesco following BA said the integration plan for on 14 of BMI’s 56 highly sought-after chief executive of Travelodge to chief executive Richard Brasher’s BMI, which is losing over £3m a Heathrow landing slots to rivals. allow executive chairman Grant departure, Hearn said “clearly INVESTORS put more cash into week, would retain about 1,500 Hearn to take full control of the there cannot be two captains hedge funds in March, data from jobs, including around 1,100 cabin International Consolidated Airlines Group debt-laden group. running a ship and as a result Guy hedge fund administrator GlobeOp crew, pilots and engineers based at 184 The budget hotel chain, which has decided to leave the company”. shows, encouraged by a rebound in Heathrow. 178.80 owns nearly 500 hotels across the It emerged in February that financial markets. p 12 Apr Talks with unnamed potential UK, Ireland and Spain, said Hearn hedge funds, Avenue Capital and Net inflows into hedge funds, as buyers for BMI Baby and BMI 180 will resume the role as chief GoldenTree Asset Management measured by the GlobeOp Capital Regional are continuing, BA said. executive which he held until 2010. were negotiating a debt for-equity Movement Index, which tracks Keith Williams, British Airways’ 176 The move follows financial swap to take control from Dubai monthly net subscriptions to and chief executive, said: “BMI is heavily restructuring talks that will see International Capital (DIC), which redemptions from hedge funds loss making and is not a viable busi- Goldman Sachs and two US hedge bought Travelodge in 2006. managing $187bn, were 0.35 per ness as it stands today. 172 funds take control of the company. The investors have agreed to cent of that total during March, “As we look to restructure the Grant Hearn said the board “has inject £70m capital to prevent the better than the 0.02 per cent net business and restore profitability, 4Apr 5Apr 10 Apr 11 Apr 12 Apr expressed their wish for me to lead business defaulting on its loans. withdrawal seen in March a year ago.

FRIDAY 13 APRIL 2012 cityam.com NEWS 13

WILL SONY” MAKE A RECOVERY?

Sony to focus on mobile, games CITYVIEWS Interviews by Kendal Gapinksi and Michael Pooler DOMINIC CAMILERI I think it has a hard task ahead. There is STRUCTURE TONE immense” pressure from Apple and Samsung.

There is a desire for it to come back, but there is very and imaging as it slashes jobs strong competition whose products are cheaper.

BY MARION DAKERS two rounds of job losses under previ- Sony expects to have made a record JAMES FLETCHER It is too big not to recover. It would take a long ous chief Howard Stringer. £4bn loss in the year just ended. FRIENDS LIFE time for it to disappear. But it depends on SONY’S new chief executive Kazuo Hirai also unveiled a renewed focus having the right” people on board to innovate. At the Hirai set out his stall for a wide-rang- on mobile phones, digital imaging Sony Corp moment it is struggling. ing overhaul at the struggling tech and Sony’s Playstation branch, as he 1,700 ¥ firm yesterday. tries to reshape the firm to boost sales 1,528 The group, which employs hun- after years of accelerating losses. 12 Apr dreds of staff in the UK, said its head- Sony aims to make 85 per cent of INGRID DRDICA I’ve heard that its mobiles aren't doing that count will fall by 10,000, or six per its operating income from these busi- 1,600 HOBBS well. It is a tough job competing against cent, this year, which includes roles nesses by 2014, as it scales back its Apple. Sometimes you just need to stick to the basics – that are moving to other companies unprofitable TV division. it should just concentrate on its strengths. as a result of asset sales. “I am determined to transform and 1,500 The cuts will result in ¥ 75bn revive Sony. This is our only chance to (£581m) in restructuring costs in the change,” Hirai told a packed news current financial year, and follow conference. 6 Apr 9 Apr 10 Apr 11 Apr 12 Apr These views are those of the individuals below and not necessarily those of their company JD Sports sees More closures profits dented by Blacks deal for Mothercare BY KASMIRA JEFFORD

JD SPORTS Fashion yesterday said full-year pre-tax profits were ahead of expectations despite suffering a as sales decline loss of £2.2m from its newly MICHA THIENER/CITY AM THIENER/CITY MICHA acquired Blacks business. Chairman Alan Parker has suspended the dividend The retailer -- which sells sporting just 200 stores by 2015 – consisting of goods from top brands like Nike and BY KASMIRA JEFFORD 173 Mothercare branches and 27 Early Adidas -- said pre-tax profits fell 14 per Learning Centres. cent to £67.4m from £78.6m a year MOTHERCARE revealed yesterday it is The retailer, which has renegotiated IS THERE HOPE FOR earlier, largely as a result of invest- to close a further 111 stores in the UK its banking facilities with its lenders, ANALYST VIEWS MOTHERCARE REVIVING ment into recent purchases including and suspend its dividend as part of said the cost saving programme would Interviews by Kasmira Jefford ITS UK BUSINESS? Blacks. the embattled retailer’s efforts to cost around £35m. JD said the ailing outdoor goods revive its fortunes. The move is expected to boost profits chain “was in a very fractured state” The baby products chain, which is by £13m by March 2015 and shave-off JOHN STEVENSON PEEL HUNT following its £20m acquisition last facing intense competition from £20m in non-store overheads on an year with “a severe lack of stocks” in online retailers and supermarkets, annualised basis. Mothercare left no surprises, with full year profit expectations unchanged. many core high performing lines. already announced plans last year to Mothercare made the announce- On strategy, Mothercare announces incremental cost savings and store closures. Chief executive Peter Cowgill said close 110 of its 273 branches by 2013. ment as it reported a steeper decline “Mothercare UK is not loss making solely due to its store base; we believe the the group was still determining the However, chairman Alan Parker said in fourth quarter UK like-for-like sales, problems centre on product and price, which are not mentioned today. size of the 215-strong estate, despite yesterday that after closing 62 stores down 8.2 per cent compared with a 5.2 already shutting 81 loss making in the year to March, the group per cent decline in the previous quar- Blacks stores. planned to scale back its UK estate to ter. ANDREW WADE NUMIS ” “Determining the size of the long Despite problems in its home mar- term store base will depend on store Mothercare ket, Mothercare’s overseas business The update gave a first look at the outcome of the structural and opera- performance when set against newly 183.00 has continued to thrive, with like-for- tional review. With a new financing agreement also announced, we were partic- negotiated rents and associated 190 p 12 Apr like sales up by 18 per cent in the “ularly impressed by the quantum of non-store overhead savings that property costs,” he said. 180 fourth quarter of the year. have been identified and are increasingly encouraged by the outlook. Despite a fall in profits, revenue The closures are part of the strategic surged 20 per cent to £1.06bn. The 170 review being undertaken by Alan DAVID JEARY INVESTEC company also said it would pay a Parker. Simon Calver, who joins as ” final dividend of 21.2 pence, up 10 160 chief executive from Lovefilm later per cent from last year. this month, will give full results of the The bare bones of the three year “transformation and growth” strategy Cowgill said the group expected strategic review in May. have been announced centring around taking significant costs out of the UK and some uplift from the Olympics but 140 A hint of the review plans to come “rightsizing the store base. You have not got significant detail on the core remained cautious as consumer 4Apr 5Apr 10 Apr 11 Apr 12 Apr sent shares up 7.8 per cent to 183p. pillars at this stage...the proof of the pudding will be in the eating. ” budgets remained squeezed. Earnings slump at Punch as it Telcos frustrated as EU continues to close down pubs delays mobile wallet

BY HARRY BANKS Like-for-like net income for core challenging climate we have a clear BY STEVE DINNEEN Sources say the decision was not estate, which includes the pubs operational plan to return the core influenced by the UK’s other PUNCH Taverns’ profits fell by 20 which the company plans to retain, estate to growth in the medium- A FUTURE where you will swipe operator, 3, which has spoken out per cent in the first half of the year, declined 2.1 per cent. term and extract maximum value your phone instead of your credit against the plans. it said yesterday, but reassured it Punch, which is in negotiations from our non-core assets,” he said. card looks set to be placed on hold The operators had initially was on track to meet its full-year with bondholders to pay down its a little while longer, with the planned to showcase the scheme profit expectations despite weak £2.2bn debt pile, said it reduced Punch Taverns European Commission expected to at the Olympics this summer but consumer market conditions. debt by three per cent during the 11.25 9.50 delay its decision on a UK “mobile were forced to abandon the The tenanted-pubs business, first half, when it sold 214 pubs and wallet” scheme. deadline after facing a series of p 12 Apr which demerged its better- other assets for £62m. 10.75 The commission will reveal its hurdles. performing managed pubs division Chief executive Roger Whiteside decision later today on a joint It is understood the European Spirit last year, said its pre-tax said the group remained on track venture proposal between Commission wants extra time to profit in the 28 weeks to 3 March with its strategy to dispose between 10.25 Vodafone, Everything Everywhere consider the next move from fell to £33m from £41m a year ago. 400 and 500 non-core pubs for the and O2 to create a standard Google, which has already Punch, which plans to dispose its full year, which will see it bring 9.75 mobile payments platform. launched Google Wallet in the US. non-core pubs over five years, said down the number of its pubs to However, it is understood the Apple is also thought to be near average net income per pub rose about 3,000 from the current 5,004. Commission will not reject the to including contactless payment less than a per cent. “Notwithstanding the continuing 4Apr 5Apr 10 Apr 11 Apr 12 Apr proposal outright. technology in its iPhone. reputation management. focused consultancyspecialising in g+Europe,aEuropean- closely with pounds. and Allan’sstake atseveral million formance over years) nextthree the per- group’s £20m (dependingonthe Omnicom. globalmarketing group the Portland to his publicrelationsfirm tohas agreed sellamajority stake in career asapressadviserto Tony Blair, BSkyB whostarted hisprofessional former spindoctorTIM Allan,the for THE sells hisPRagency Former Blairadviser Tim Allanwillstay onafter thedeal 14 It willinvolve Portland working The dealvaluesPortland ataround CAPITALIST and Kemp Little. dealbyPartners SI was advisedonthe Portland Conservative links. party hiring anumberofpeoplewith hasn’tpreventedbut that Allanfrom principal shareholders.. Digital’s for Carlton, oneofITV office rivals wasDavid press Cameron,then timeoneofAllan’smainpress the television platform, ITV Digital. At process oflaunchingarivaldigital rival ITV, inthe whichwasthen abitterwith battlebetween itandits agency BMP. advertising ofthe executive office Sir ChrisPowell, who isaformer chief evision punditMichaelPortillo and former Conservative Minister andtel- former bossfromBSkyBTony Ball, Tesco, VirginMediaandMcDonald’s. clients now includeGoogle,Apple, Its firm. the himwhenheleft with Allan whotook BSkyBaccount the leagueenvoy. UN-Arab the Annan, where itdoeswork Kofi with London, New York andNairobi, The rivalry was often quite wasoften bitterThe rivalry Allan’s timeatBSkyBcoincided boardcomprises Allan’s Its advisory Portland wasfounded in2001 by in Portland alreadyhasoffices expected to fetch around $80m. will beAndyWarhol’s 1963DoubleElvisandaPablo Picassoportrait. TheScream is Sotheby’s inLondon aheadofasaleinNew York on2May. Alsoonsalethatevening EDWARD Munch’s iconic picture, known asTheScream, was onshow yesterday at MUNCH’S SCREAM COMES TO LONDON FRIDAY 13APRIL2012 cityam.com/the-capitalist

LAURA LEAN/CITY AM with Ken Costa In conversation free by [email protected]. Cathedral. recentproteststhe atSt Paul’s following ethical the with financial onreconnectingthe Canterbury duty, Archbishopof isadvisingthe kets have moral lost sightoftheir Banker.” known days these as“TheEthical investment banker, morecommonly former UBSandLazards Costa, the will beinconversation Ken with Institute ofDirectors (IoD). cussion onTuesday nightatthe compass mightwantto attend adis- moral their finding tle difficulty THOSE whofear mighthave they alit-

Turn up to hear the Ethical Banker Costa, who has claimed that mar- Costa, whohasclaimedthat IoD director general SimonWalker City A.M. [email protected] on Twitter: @citycapitalist readers canregister for Follow TheCapitalist Got AStory? Email cityam.com

REUTERS FRIDAY 13 APRIL 2012 cityam.com NEWS 15 Melrose execs Ryanair blames sell on shares airport fees for after windfall BY MARION DAKERS

DIRECTORS at manufacturing buyout firm Melrose sold shares worth nearly £69m yesterday in Edinburgh cuts order to raise cash to pay tax on their long-term incentive awards. Melrose chairman Christopher Miller is among the top staff being rewarded Stock amounting to four per cent BY MARION DAKERS of the firm’s total share capital was change hands this year after BAA placed with institutional investors put it on the market following a ADVISERS INVESTEC through an accelerated bookbuild RYANAIR yesterday cut 60 weekly competition ruling. managed by Investec. flights from Edinburgh Airport in a Ryanair argued that its routes Anderson joined Investec in 2002 having Directors were given stock worth bid to force operator BAA to lower needed to be finalised before the been previously at WestLB Panmure, where £126m yesterday as an incentive its fees. sale, as its current deal ends in he was head of corporate broking and a scheme from 2009 paid out. The low-cost carrier warned that October. “We need to sign a new KEITH ANDERSON member of the investment banking man- Around half of these shares were its move to axe eight routes from its contract now to allow us to plan our CO-HEAD OF agement committee. He is also a member of subsequently sold at 400p each. winter schedule could cost up to winter schedules, irrespective of CORPORATE BROKING the Institute of Chartered Accountants of Shares in Melrose closed up 3.15 per 500 jobs at the airport. who owns the airport… We need to Scotland. cent at 418.8p yesterday. Ryanair blamed BAA’s “uncompet- have our planning and schedules in Baird, meanwhile, has been managing Executive chairman Christopher KEITH Anderson and Chris Baird of Investec itive” fees, and said its annual pas- place,” said a spokesperson. director in advisory at Investec since 2009, Miller was awarded 7.5m shares advised Melrose on yesterday’s secondary senger traffic at Edinburgh would O’Sullivan said the airport is having previously held the MD position at under the scheme, and yesterday share placing. fall by 500,000 on a year ago due to “look[ing] forward to further negoti- Dresdner Kleinwort. sold 4m. Chief executive David Anderson is co-head of corporate broking at the cuts. ations with Ryanair once the sale of Baird started his career as a chartered Roper and chief operating officer Investec and has advised a range of top Edinburgh, however, was already the airport is concluded.” accountant, qualifying with PwC, before Simon Peckham, who were also clients on their finances. joining Kleinwort in 1995. braced for Ryanair’s more modest He added that Ryanair is being He and Baird were recently appointed as a given 7.5m shares each, sold on winter plans. “It was expected as we asked to pay the same air traffic con- Investec has picked up a string of clients 4.2m and 3.75m respectively. broker to Halma, a FTSE 250 UK technology since taking over Evolution in September, saw similar cuts in last year’s win- trol costs as every other airline. Finance boss Geoff Martin was provider, having advised the firm in previ- including engineering group Ricardo and ter schedule,” said managing direc- Earlier in the week, BAA said awarded 4.69m shares and sold on ous years while the pair worked at Dresdner Halma. tor Jim O’Sullivan. March traffic at Edinburgh had fall- 2.58m yesterday. All three continue Kleinwort. By Michael Pooler Edinburgh Airport is expected to en 2.8 per cent on last year. to hold millions of shares. Hays boosted by Germany but NEW JOBS NEW COMPANIES UK banking market still weak EVERYDAY

BY ELIZABETH FOURNIER The international boost meant domestic growth. the group was able yesterday to To offset the decline, the firm SHARES in recruitment firm Hays revise its profit forecasts, saying it said it was continuing to focus on climbed as much as 11 per cent now expects full year operating cost cuts as a means of protecting yesterday after it posted steady profits to come towards the top profit margins – and admitted it growth in global net fee income, end of market estimates that had decreased consultant despite a drop in profits at its UK range from £108m-£130m. headcount in the UK by five per business. Finance director Paul Venables cent over the quarter. CEO Alistair Cox said the UK struck a more positive note than Net debt decreased by around had been hit by weakness in in the company’s last update, £18m over the period to £160m, banking and the private sector, when he admitted the firm was and Venables maintained that leading to a decline in domestic taking a “cautious position” on Hays would “continue to invest net fees of five per cent in the the outlook for the rest of 2012. selectively in certain growth three months to 31 March. Yesterday he said that though areas”. But he ruled out The gloomy UK outlook echoes markets were “complex and far acquisition in core market yesterday’s update from peer from uniform” there were signs Germany, saying the company CITYAMCAREERS.com Michael Page, which said weak that companies should be “more would “rather be aggressive in markets were dragging on growth positive than three months ago”. organic growth”. despite reporting an uptick of In the UK, the overall drop in seven per cent for the first income came largely from a Hays PLC quarter. slowdown in the private sector, 88.50 p Overall growth at Hays was 10 where net fee income fell by six 92 12 Apr per cent, supported by a strong per cent – largely due to 90 performance across the group’s decreased activity in the firm’s 88 continental Europe practice – banking and “City-related 86 particularly in Germany where specialisms”. 84 net fee income rose by 36 per Fees from the public sector also 82 cent. Australia and New Zealand lagged, falling by two per cent, 80 OR SCAN HERE also led expansion in Asia Pacific, while IT, legal and energy contributing to a five per cent recruitment were the key areas increase overall. where Hays clawed back some 4 Apr 5 Apr 10 Apr 11 Apr 12 Apr OVER SALARIES UP TO IN BRIEF Swatch snaps up watch case firm Online shoppers boost UK Mail Price cuts hurt Carrefour’s sales 2500JOBS £300K n Swatch Group is buying high-end n UK Mail Group’s performance in n Europe’s biggest retailer, watch case maker Simon Et Membrez the fourth quarter was in line with its Carrefour, reported lower first quarter for an undisclosed sum, the group expectations, the group said sales than analysts had expected announced yesterday, in a deal that yesterday. Driven by increased online yesterday. First quarter sales were will improve its own production shopping, UK Mail reported a volume €22.5bn (£18.6bn). Sales fell 2.1 per division. Simon Et Membrez, with 250 growth of 10 per cent. Its reported cent, not including fuel, currency and employees, will continue to trade revenues for the quarter increased by calendar effects, while French FINANCE, LEGAL & I.T under its name and will also carry on 14 per cent, compared to the previous hypermarket sales dropped 5.8 per supplying third parties. The deal also year. Total revenue growth for the cent. It said that its recently includes a 60 per cent stake in the year increased by eight per cent, implemented ‘Reset’ plan for French related case polishing company, boosted by both its Courier and hypermarkets had also hurt sales, as Termiboites SA, which has 50 Pallets businesses reporting revenue volume growth had not yet made up employees. growth for the year. for its price cuts. WWW.CITYAMCAREERS.COM FRIDAY 13 APRIL 2012 16 NEWS cityam.com Churchill Mining seeks $2bn in Commercial property firms at their busiest in over two years coal dispute with Indonesians BY MARION DAKERS just London-focused,” said Michael Pillow, head of building in what we say is an unfair and COMMERCIAL property developers consultancy at Savills. BY JOHN DUNNE “If nothing happens, we would improper manner.” in Britain have enjoyed their A net balance of 18.6 per cent of proceed with lodging our The 350-square-km (135-square- busiest month in more than two developers outside London and the CHURCHILL Mining is heading to application around the end of mile) mine site in East Kutai, a years, according to research out south east reported a rise in an international court of May,” Churchill’s executive district in East Kalimantan today. activity, the research said. arbitration in May to fight for chairman, David Quinlivan said province, is estimated to contain Public sector work has expanded Industrial properties and $2bn (£1.25bn) compensation in a yesterday, when asked whether the 2.8bn tonnes of coal reserves. for the first time since February refurbishment jobs were the fastest- dispute over an Indonesian mine matter would go to international Indonesia is the world’s top 2010, while private sector growing sectors, with a net 17.2 and that has one of the world's biggest arbitration. thermal coal exporter, and its fast- developers posted their first growth 13.6 per cent reporting growth undeveloped coal reserves. “The arbitration would take growing mining sector accounts in nine months, figures compiled respectively. Last week, Indonesia’s supreme place in a country that is neutral for about 12 per cent of its GDP. by Markit for Savills showed. A net balance of seven per cent of court moved to reject an appeal to Indonesia and Great Britain,” From late 2007 until early 2008, Around one in four commercial firms working on public sector by Churchill Mining which has said Quinlivan, whose company Churchill bought a 75 per cent developers recorded a rise in overall office space, by contrast, reported a been fighting Indonesia’s will seek 75 per cent of the value stake in Indonesian firm PT activity in March, compared to 12 dip in activity in March. Nusantara Group for almost four of the asset, or about $2bn. Ridlatama, which it says received per cent who said that work was in This is the best reading since years over the rights to develop “It will be against the sovereign four mining licences from the East decline. April 2010, however, and an coal reserves with a value that the nation of Indonesia, which Kutai government, and then spent “Encouragingly, this recovery improvement on a negative balance company estimates at $3bn. allowed our licences to be revoked about $50m on the project. appears to be broad-based and not of 20.5 per cent in February. LONDON 2012 IMAGE OF THE WEEK Grainger is on Petropavlovsk track to pay down debt pile sees 60pc rise BY KASMIRA JEFFORD

GRAINGER, the UK’s largest quoted residential landlord, said yesterday it expects a lift in the value of its UK portfolio and an in its gold haul improvement in sales when it Olympic wristbands Wenlock in costume Miniature taxi cabs reports its half year results next BY HARRY BANKS month. ous year. The Newcastle-based company, RUSSIA-FOCUSED gold miner Meanwhile FTSE-250 miner which operates in Germany as well Petropavlovsk said gold production Centamin said gold production at its as the UK, said completed sales in the first quarter of 2012 rose 60 flagship mine in Egypt was marginal- from both portfolios in the six per cent on the same period a year ly below its estimates despite a strike months to the end of March will be ago, boosted by higher grades of the in the first quarter, sending the ahead of the same period last year. precious metal extracted from its miner’s London-listed shares up four Andrew Cunningham, chief Pioneer mine in Russia’s Far East. per cent. executive of Grainger, has been The company said it produced The company’s shares dropped focusing on cutting the group’s 120,800 ounces and is on track to sharply on 6 March after it said opera- overall level of debt, which stood produce its target of 680,000 ounces tions at its Sukari mine had been at £1.44bn at the end of January. of gold this year, with production as halted due to labour unrest. It The group said yesterday that its usual weighted towards the second resumed operations on 12 March. efforts to pay down debt “will half of the year. The Egypt-focused miner said pro- become evident” as a result of its The first quarter of the year is duction in the first quarter rose nine Branded breakfast bowls Multi-coloured pen lids Official London 2012 t-shirts disposal programme in the past six always challenging due to low winter per cent to 49,071 ounces. It had months. Numis analyst Chris temperatures, said chairman Peter expected to produce 50,000 ounces. Millington, expects to see a £80m Hambro in a statement, adding that Centamin said it mined and reduction in debt in the full year. despite this the company beat its processed fewer tonnes than in the “Grainger’s trading update forecast for the sixth quarter in a fourth quarter because of the disrup- shows the group is making row. tions. progress across all the key areas of Production from its Pioneer mine The plant achieved record produc- its business. Rents are growing grew 79 per cent during the quarter tivity, with tonnes per hour rates strongly, values of sales are ahead to 65,600 ounces. exceeding five million tons per of September 2011 and net debt is Its 2012 production target will be annum during the period, the com- now starting to fall”, he said. an eight per cent rise from the previ- pany said. Grainger also anticipates both rental income and fee income will increase, mainly due to the Petropavlovsk Centamin PLC 66.40 LAURA LEAN/CITY AM LEAN/CITY LAURA acquisitions of HI Tricomm and 550 p 69 p 12 Apr 524.50 Engraved paperweights Wenlock on plastic cups Olympic figurines the GenInvest portfolio last year. 12 Apr However, the firm warned that 530 67 JOHN Lewis, one of London 2012’s sponsors, Between now and the start of the profits may be below those has rolled out the official Olympic merchandise Olympics, City A.M. is publishing its achieved in the first half of 2011, to all of its UK stores. It will now offer over Olympic Image of the Week. If you 510 65 when it said pre-tax profit had 3,000 products, a small selection of which are have a shot you think our readers will been “materially enhanced by the shown above. Wenlock, the Olympic mascot, like, please email [email protected] 490 partial reversal of mark to market 63 and Mandeville, the Paralympic mascot, feature with IOW2012 in the subject line. Full movements on its long term heavily, alongside iconic symbols of London. details: cityam.com/london-2012 financial derivatives and by gains 4 Apr 5 Apr 10 Apr 11 Apr 12 Apr 4 Apr 5 Apr 10 Apr 11 Apr 12 Apr on acquisitions.”

Private Property Finance Roche sales remain flat as Illumina bid battle rages BY HARRY BANKS get its own nominees on to the US firm’s its prospects,” Schwan said in a •Individuals, companies, SPVs etc. board at a meeting next week to push for statement. •We will arrange funding for you SWISS drugmaker Roche dangled the talks. His comments echo those made in a from £30k to £20m. prospect of a higher offer before Chief executive Severin Schwan said letter to Illumina shareholders late on •A quick and true alternative reluctant US bid target Illumina that Roche would have to consider “all Wednesday in which Schwan also to slow bank funding. yesterday along with broadly flat first- its options” if Illumina shareholders ridiculed Illumina’s claim to be “the quarter sales supported by its top-selling voted against its proposals at that Apple of the genomics business”. Soho Corporate cancer drugs. meeting. Roche, the world’s largest maker of 0208 123 2151 Genetics specialist Illumina has “If Illumina were to engage with us, cancer drugs, said first-quarter sales fell www.sohocorporate.co.uk rejected Roche’s $6.7bn sweetened we would consider any information one per cent to SwFr11.03bn, but rose takeover offer and has also urged supporting Illumina’s contention that two per cent at constant exchange rates, Steven McColl – Investment Partner at Soho Corporate. investors to vote against Roche’s bid to our offer undervalues the company and meeting the average analyst forecast. FRIDAY 13 APRIL 2012 cityam.com NEWS 17 World Bank bullish on China’s House buyers suffer as credit long-term growth prospects conditions batter mortgages BY TIM WALLACE from 12,247 in February to 10,428. Banks were also increasingly BY MICHAEL POOLER Chinese Premier Wen Jiabao last soft landing”, said to Ardo TIGHTER credit conditions are reluctant to lend to those with month. Hansson, lead economist for starting to impact on lending to small deposits – only 10 per cent of CHINA’S economic growth will A slowdown in growth of China at the World Bank. home-buyers, according to chartered loans went to buyers with deposits slow to a 13-year low in 2012 consumption and investment The Bank believes this will surveyors’ figures published today. below 15 per cent. according to a World Bank report rates, coupled with weak external create room for policy responses Loans for home purchase dropped “Until now high-street mortgage published yesterday, although it demand, are behind the laying foundations for sustainable to 43,450 in March – an 11 per cent lenders have been able to absorb should avoid the “hard landing” predictions. long-term growth. drop on February and the lowest steadily increasing costs, rather feared by its leaders. The headline figure indicates Next year will see a fillip as since December 2010, e.serv’s than passing them onto the The report predicts growth of the economy is expanding below economists predict a boost in mortgage monitor revealed. consumer,” said e.serv’s Richard 8.2 per cent on the previous year, its potential, but this will growth of 8.6 per cent, a sharper First-time buyers particularly Sexton. “Mortgage availability will firmly higher than the 22-year moderate the risk of overheating bounce than had been predicted suffered, with loans for homes continue to fall in the next three low of 7.5 per cent forecast by and “[increase] the prospects of a last November. under £125,000 falling 14 per cent, months.” LAGARDE WARNS OVER SOVEREIGN FLARE UP IN BRIEF US jobs recovery slows down Weak exports n The number of Americans newly claiming unemployment benefits unexpectedly rose last week to its highest level since January, official figures showed yesterday. New claims rose 13,000 to 380,000 in the week to weigh on GDP 7 April, and the previous week’s claims were also revised up from 357,000 to 367,000. Falling numbers of claims over recent months had raised hopes that the economy was accelerating, and economists hope the growth hopes downward trend can continue. Warm weather boosts Eurozone BY TIM WALLACE Services trade held steady with a n surplus of £5.4bn in February. Eurozone industrial production rose ECONOMISTS have warned that weak “These disappointing figures sug- in February against January, beating international sales are dragging down gest that net trade’s positive contribu- market expectations of a contraction, the UK’s economic growth, as official tion to GDP growth in the final but January’s output was revised lower, figures yesterday revealed falling quarter of last year is likely to have official data showed yesterday. Warm goods exports in February. been a one-off,” said Vicky Redwood weather pushed industrial output up The trade deficit rose for the sec- from Capital Economics. 0.5 per cent month-on-month in ond consecutive month, up £0.9bn to “Barring a sharp narrowing in February, though the annual figure £3.4bn, driven by falling goods March, the deficit in the quarter as a showed a 1.8 per cent fall on the same exports to non-EU countries. whole will be about £2bn bigger than month of 2011. Eurostat also revised Furthermore, January’s deficit was the £7bn recorded in the fourth quar- down previously released data to show revised up from £1.8bn in initial esti- ter of 2012, equivalent to about 0.5 no change in output in January against mates to £2.5bn. per cent of quarterly GDP.” December from the previously reported The goods deficit with EU countries “Accordingly, it looks as though net 0.2 per cent increase. fell £0.4bn to £3.8bn in February, trade was a drag on GDP growth in while the deficit with non-EU coun- the first quarter.” tries rose from £3.7bn to £5bn. Fed hawk in new call over inflation Car exports led the drop, falling The UK’s trade deficit widened again in February n Inflation in the US will be above tar- £0.3bn to non EU countries includ- 2 get next year and may force the Federal ing the US, Russia and China, and Reserve into earlier tightening than £0.2bn to EU countries. 0 expected, according to Minneapolis Chemicals exports offset some of representative Narayana Kocherlakota. those losses, rising £0.2bn, and oil -2 One of the Fed’s more hawkish econo- exports rose £0.1bn, largely to France GETTY mists, Kocherlakota said at a speech and the Netherlands. -4 last night that normalisation of interest

£billion, seasonally adjusted CENTRAL bank cash and European economic reforms have created “some Goods imports were almost rates could begin as soon as late this unchanged, with a £0.2bn rise in oil improvement in the economic climate,” said International Monetary Fund (IMF) boss -6 year – in contrast to Fed expectations. imports offset by a £0.2bn drop in Feb Apr Jun Aug Oct Dec Feb Christine Lagarde yesterday. But “the risks remain high, the situation fragile,” she intermediates, 2011 2011 2011 2011 2011 2011 2012 warned, urging IMF members to give the fund more cash to combat financial crises. 18 FRIDAY 13 APRIL 2012 cityam.com

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in association with CITY MOVES WHO’S SWITCHING JOBS Edited by Tom Welsh NEW YORK Norton Rose Man Group Australian Newspapers and Zinifex. The law firm has announced two Ravi Chari has been appointed co-head of foreign exchange Law Society REPORT new partner hires. Maartje at AHL, Man’s systematic managed futures manager. Chari Govaert (pictured) joins as an joins from Ikos Asset Management, where he headed its The professional body for solicitors has elected Andrew employment partner from De futures and FX funds. He was previously portfolio manager Caplen to the post of deputy vice president, effective July Brauw Blackstone Westbroek and at Millenium Partners, and has worked for DKR Capital. 2012. Caplen has been a council member since 2000 and is Herman Wamelink joins as a due to become president of the society in 2014. Second day of banking partner from Allen & PwC Overy. Govaert has 13 years Zomm experience practising Guy Shepherd has been recruited to lead PwC’s actuarial bounce back employment law in London, New systems and modelling services. Shepherd joins after 17 The technology firm has announced the appointment of York and Amsterdam, and Wamelink has broad experience years at Prudential, where he was most recently head of Mike Lanphear as vice president of global sales. Lanphear advising financial institutions on acquisition transactions. actuarial and business intelligence systems and responsible has held executive roles at Verizon/GTE and Openwave, and for implementation of its IT programme underpinning most recently was director of global business for Zvelo. on Wall Street Brookfield Investment Management Solvency II. Smith & Nephew S stocks scored a second day of The investment management firm has announced that Mark Bullabulling Gold solid gains yesterday, led by Northway is joining as managing director. Northway has Baroness Virginia Bottomley, the former MP, has been materials and energy stocks, Peter Mansell has joined the mining exploration firm as appointed non-executive director of the medical U over 20 years experience in the industry, and most recently as investors set aside weak was global head of credit capital markets at Landesbank non-executive chairman. He was over 35 years experience technology firm Smith & Nephew. She is also non-executive figures on the domestic labour Baden-Wuerttemberg. in corporate law and has served as director of West director of Bupa and a trustee of The Economist. market. Rumours about strong growth fig- ures due overnight from China +44 (0)20 7092 0053 helped wash away some of the wor- SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com ries that hit stocks during a five-day streak of losses that ended with Wednesday’s rebound. To appear in CITYMOVES please email your career updates and pictures to [email protected] Basic materials shares led gains as commodity prices advanced. The S&P materials sector index jumped 2.8 per cent. US Steel gained 7.5 per cent to LONDON REPORT BEST BROKERS $29.36. Freeport-McMoRan Copper of the & Gold rose 5.9 per cent to $37.89 and an index of gold and silver miners’ GKN PLC shares rose 3.7 per cent. 203.30 Overall the Dow Jones industrial p 12 Apr Miners lead FTSE higher on hopes 210 average jumped 181.19 points, or 1.41 per cent, to 12,986.58 at the close. The 205 Standard & Poor’s 500 Index gained 200 18.86 points, or 1.38 per cent, to of strong economic growth in China 195 1,387.57. The Nasdaq Composite Index 190 climbed 39.09 points, or 1.30 per cent, RITAIN’S top share index hit a one- Charts showed positive near term signs, to 3,055.55. week closing high yesterday as after the FTSE 100 bounced back on 4 Apr 5 Apr 10 Apr 11 Apr 12 Apr The rebound pushed the S&P 500 B mining stocks jumped on market Wednesday from a support level of 5,570, back above its 50-day moving average, talk that China, the world’s which provided a floor in January. “The a sign that traders may see the recent biggest metals consumer, could report index is set for a rebound. Its nine-day RSI GKN pullback of more than four per cent strong economic growth numbers today. (relative strength index) fell into the over- Credit Suisse has upgraded the carmaker from “neutral” to as an opportunity to catch up with Economists polled by Reuters in March sold zone yesterday and coincided with the “outperform” and has left its target price unchanged at 240p. The the benchmark’s gains. The index is forecast that China’s GDP expanded 8.3 per support level,” said Julian McCormack, broker points out that GKN’s shares have underperformed the sector up more than 10 per cent in 2012. cent in the first quarter of 2012 versus a year technical analyst at Brewin Dolphin. by four per cent in the last month, thanks to concerns over its possible Concerns about the Eurozone’s debt earlier. But several traders cited market talk However, Michael Jarman, chief market purchase of Volvo Aero, providing a buying opportunity. Credit Suisse crisis were eased by lower Italian of a nine per cent rise, prompting investors strategist at H2O Markets, remained cau- reckons GKN is in pole position to buy Aero, now that MTU has pulled bond yields. to snap up equities. tious and said the rally in share prices was out of the race. Benchmark bond yields in Italy and The UK mining index climbed 3.1 per just a short-term technical bounce and due Spain dropped following solid cent, extending its recent rally, also helped to encouraging US trade balance deficit fig- demand at this week’s Italian debt by firmer copper prices , which rose fur- ures. “I’m still fairly defensive and expect African Barrick Gold PLC auctions, while the euro hit a one- ther above technical support at $8,000 a any short term moves to be short-lived.” p 351.20 week high against the US dollar, indi- tonne as worries over the global economic Among individual movers, autos and 400 12 Apr cating a reduction in near-term 390 outlook eased. aerospace parts firm GKN topped the FTSE 380 concern about the Eurozone’s debt Global miner Rio Tinto rose 4.5 per cent, 100 risers’ list, up 6.2 per cent, as Credit 370 troubles. Vedanta was up 2.9 per cent, while BHP Suisse upped its rating to “outperform” 360 In a sign that the US labour mar- Billiton gained 2.8 per cent. The sector from “neutral”. 350 ket’s recovery may be stalling, govern- helped the FTSE 100 index to finish 75.72 Its shares were also supported by a 49 per ment data showed new US claims for points, or 1.3 per cent, higher at 5,710.46 cent jump in British aerospace parts sup- unemployment benefits rose unex- points, the highest close since 5 April. plier Umeco after specialty chemicals 4 Apr 5 Apr 10 Apr 11 Apr 12 Apr pectedly last week to their highest “This speculation [on Chinese GDP growth] maker Cytec Industries said it had made level since late January. But some helped to increase near term demand for an offer valued at about $439m for Umeco. AFRICAN BARRICK GOLD economists cited the Easter holidays stocks whilst US trade data also boosted risk Aggreko gained 3.1 per cent as the Goldman Sachs has downgraded the miner from “neutral” to “sell” for the spike in claims, adding that appetite,” said Joshua Raymond, chief mar- world’s biggest temporary power provider and has cut its target price from 570p to 380p. The broker sees ABG as they expected applications will keep ket strategist at City Index. said underlying revenue had risen by more a “structural laggard” compared to fellow gold companies, with lower declining in the weeks ahead. The US trade deficit narrowed unexpect- than 20 per cent in the first three months growth and higher costs. Goldman has also recently lowered its Google shares rose one per cent to edly in February as exports hit a record of the year, putting it on track for further forecasts for gold prices this year as the US economy continues to $657.67 in extended trading after the high, imports from China and other key growth in 2012. Aggreko’s trading volume recover. company reported its quarterly suppliers declined and oil import volume was 2.5 times its 90-day daily average. results and announced a proposal to fell to the lowest in 15 years. Royal Dutch Shell recovered to end 0.8 effectively implement a 2-for-1 stock “A stronger than expected reading in per cent lower after said a sheen discovered Tesco PLC split. Chinese GDP data would be hugely impor- in the water near its offshore Gulf of p 325.85 After the bell, shares of Dow tant for calming fears of a sharp slowdown Mexico oil wells was estimated to total 340 12 Apr Chemical rose 1.8 per cent to $33.25 in global growth. And considering much of about six barrels of oil and that its facilities 335 after the company boosted its quarter- the FTSE 100’s prospects are weighted in showed no signs of leaks. 330 ly dividend by 28 per cent and fore- the performance of heavyweight mining cast earnings growth for the stocks, the reading will play a strong role FTSE 325 foreseeable future. in how the FTSE 100 opens today.” 5,850 320 Early into earnings season, results UK banks were also in demand, with a are beating Wall Street’s expectations 5,800 fall in Italian bond yields after clearing its 5,710.46 4 Apr 5 Apr 10 Apr 11 Apr 12 Apr at a fast clip. Analysts say the expecta- latest round of auctions improving senti- 5,750 12 Apr tions could have been lowered too ment towards the financial sector. The much and stocks can seem cheap banking sector suffered heavily last year as 5,700 TESCO after the S&P’s recent pullback of over many banks were highly exposed to debt- 5,650 Nomura rates the supermarket “buy” with a target price of 430p. The four per cent. laden peripheral Eurozone economies. broker expects to see pre-tax profit up 2.7 per cent at £3.9bn when “Earnings so far have been better Banks rose 2.2 per cent, while Barclays 5,600 Tesco reports its full year results next Wednesday, with a UK margin of than expected, and that reinforces was up 5.4 per cent. Lloyds gained 4.3 per 5.7 per cent. Nomura also flags up Tesco’s real estate strategy as an the view that forecasts had gotten too cent as New banking venture NBNK made issue to watch, with a shift towards smaller stores expected as it pessimistic,” said David Joy, chief mar- a fresh bid for 632 Lloyds bank branches. 4 Apr 5 Apr 10 Apr 11 Apr 12 Apr moves away from opening new hypermarket-sized outlets. ket strategist at Ameriprise Financial. FRIDAY 13 APRIL 2012 cityam.com MARKETS 19 20 FRIDAY 13 APRIL 2012

THEFORUM In association with cityam.com/forum Government fails the moral code it is now demanding of taxpayers

T IS difficult to think of an issue payers who follow the advice of the so that he could be absolutely sure that process different. But because he used that has generated more self- Lord Justice General, Lord Clyde, who he would not be penalised for under- the wrong procedure, he lost his case righteous moralising by politicians famously said: “No man in the country paying. These are unusual circum- and wasn’t allowed to reclaim the VAT Iof all parties than the recent furore is under the smallest obligation, moral stances, but those are the facts. that everyone agreed he had overpaid. over “abusive” tax avoidance. Some or other, so to arrange his legal rela- His accountant subsequently pointed So did Chan pay the right amount of of the pronouncements emanating tions to his business or property as to out to him that this was unnecessary, tax? Did HMRC rely on an accurate, but from Westminster would lead one to enable the Inland Revenue to put the so he adjusted later his VAT returns to unfair, reading of the legislation to believe that tax avoidance is one of the ANDY WHITE largest possible shovel in his stores.” recover what he had overpaid. maximise its position? Does any of this great crimes of our age. Except it’s not Is the government seriously suggest- Sensible? Law-abiding? Not in the eyes sound familiar? a crime. ing that taxpayers should look at their Tax liabilities should be assessed in What has been overlooked in the din ter a view that tax avoiders are bad and income and gains and decide what tax accordance with laws made by parlia- of the debate is that tax avoidance is their activities are damaging to the bill it would be fair to pay? There-in lies To suggest taxpayers ment. If gaps and loopholes appear, perfectly legal and, one might say, country. Attacking tax avoiders rein- anarchy. ‘ then it’s quite right and proper that mandatory. Is the company director forces the government’s mantra that The problem here is that, despite the should be the arbiters laws should be amended to correct the who fails to take all legal steps to min- “we’re all in it together”. government’s efforts to redefine the situation. But to suggest that taxpayers imise the company’s tax liabilities real- To further shape the debate, the gov- English language, there is no such of the right amount of should somehow be the arbiters of ly doing his best as a custodian of the ernment has deliberately blurred the thing as the “right amount” of tax and, what is the right amount of tax is company’s assets? distinction between avoidance and eva- if there were, it would not be for HMRC tax is arrant nonsense arrant nonsense and a complete abro- However, the question has become: is sion by tacking the word “abusive” or, still less, taxpayers to define what it gation of responsibility. tax avoidance moral? With the econo- onto the former. Exchequer secretary is. This is not a moral question any more my and public finances in bad shape, is to the Treasury David Gauke was But more crucially, if the government than it is a moral question for drivers it right for individual taxpayers to seek recently quoted as saying: “Aggressive wants us to behave in this utopian way, of HMRC. to decide on the right speed limit for a to minimise their liabilities? Surely, the tax avoidance is anti-business and busi- it has an obligation to do likewise. Because the “error” was deliberate, particular stretch of road. moralists argue, it is incumbent on nesses should pay their full tax”. Should it not also only claim the “right he should have used a different But if the government insists on tax- each and every one of us to pay our fair Previous announcements have referred amount” of tax? method for reclaiming the overpay- ing us in accordance with some sort of share? frequently to taxpayers paying the In a recent VAT case, heard on 22 ment. Instead of adjusting future moral code, shouldn’t it instruct HMRC The current explosion of comment “right” amount of tax, while George February in the first-tier tribunal, returns, he should have made a volun- to do exactly the same? comes as no surprise. It suits the gov- Osborne has repeatedly expressed his Hung On Chan, a restaurateur, had for tary disclosure. The financial effect Andy White is a tax partner at Carter ernment very well to promote and fos- outrage at the activities of those tax- many years deliberately overpaid VAT would have been identical, but the Backer Winter.

Agree? Disagree? Got a sharp comment? The Forum wants you to join the debate. Twitter: @cityamforum on the web: cityam.com/forum or by email: [email protected] Top responses will be reprinted in The Forum. Publishing’s future hangs in the balance: This is no time to pick winners

N THE tradition of digital success As Walter Isaacson’s biography of ebooksellers, changing the rules of With many ereaders barely out of leading to massive antitrust Steve Jobs revealed, Jobs planned its app store in its own favour. It isn’t their Christmas wrapping paper, it is lawsuits, the US Department of THE LONG that the iPad would be a going to be any more sentimental to far too early to tell what publishing’s I Justice (DoJ) this week filed a suit replacement for textbooks, the Hachette, Macmillan, Penguin and future will look like. But it would be against Apple and five publishers VIEW prices of which have spiralled in the the others when the time comes. foolhardy to trust either Apple’s for allegedly conspiring to keep US to over $200 (£125). Jobs thought That doesn’t make Amazon the strategic commitment to agency ebook prices artificially high. Apple’s the market, which has also been hero of this story, either. True, its pricing or Amazon’s gated Kindle. epublishing rival Amazon rubbed MARC SIDWELL accused of cartel-like tactics to wholesale price model does more to Far more intriguing is Amazon’s salt on the wound by promptly maintain its pricing levels, was “ripe recognise the disruptive nature of Kindle Direct service, which has cutting its Kindle ebook prices even for destruction”. After the launch of electronic publishing, where already allowed 26-year-old Amanda further. But no one should be too allows them to produce books of real iBooks 2 this January, with a clear marginal costs fall to zero. But it is Hocking to become a self-published smug. The upturning of traditional quality and authors to make a living. focus on educational content, Apple hardly innovative, simply replicating millionaire, while selling books at publishing models has only just On this view, the DoJ is merely a clearly has textbooks in its sights. an approach long accepted for $0.99 a copy, making even Amazon’s begun and neither Apple nor hapless stooge of Jeff Bezos as he Some publishers may have found it a physical books. Meanwhile Amazon’s $9.99 bestsellers look absurdly Amazon – certainly not a DoJ ruthlessly uses content as a loss- temporary ally, since Apple came late commitment to digital rights overpriced. With that kind of supply prosecutor – has the answer to where leader to gain market share. to Amazon’s ebook party and needed management (DRM) via a dedicated chain disintermediation on the it will all end up. But anyone who thinks like that is to get on the right side of Kindle format harks back to the horizon, government lawyers are the Some think that Apple and the big in for a nasty shock. First of all, rightsholders, but there’s no reason most short-sighted policies of the least of the industry’s worries. publishers should be seen as heroes, Apple is also in the business of for that to last. Apple has been pretty music industry’s traumatic Marc Sidwell is City A.M.’s business bravely defending a model that undercutting traditional publishing. ruthless in its attitude to other encounter with digital disruption. features editor. FRIDAY 13 APRIL 2012 21 The Forum is open for you to take part. Got a sharp comment on one of today’s columns? Do you have another subject you want to share your opinion on? We want to hear your views. Email [email protected] or visit cityam.com/forum RAPIDresponses The pain in Spain Kamall on Barnier TOP TWEETS has put its banks Is there more the FCO can do to boost trade [Re: I value the City: EU commissioner approach to free markets. He is slipping diplomacy? [Re: Look behind the headlines responds to criticisms, yesterday] through controversial measures with limited for the real story on UK trade diplomacy, Michel Barnier’s reply falls short on specifics democratic scrutiny. At one meeting, Wednesday] << Interesting article. Answer is and won’t reassure London hedge funds technical measures were discussed in yes, and yes we are. back on the rack and private equity houses. Barnier holds French, with no translation for those whose @WilliamJHague hundreds of meetings with the industry, but primary language was English. I believe in listening to what is said at them is another proportionate and necessary regulation. The key point is that the government will do ITH a sense of matter. The industry doesn’t have faith in a That’s why I’m concerned by this tidal wave nothing to undermine house prices. inevitability the process that gives it a few weeks to of directives. While I recognise that the EU is @DBSSays spotlight has landed on scrutinise technical detail and make mandated to implement G20 commitments, WSpain. Though the representations, which are then dismissed it should remember that the G20 also Like job creation, housing supply ultimately headlines proclaimed in a high-handed fashion by officials. He is agreed to keep markets open. The most will improve through private sector initiative. that the Eurozone crisis has right that the European Parliament and important lesson for London's financial @gpolitica returned with a vengeance, the Council can reject these implementing services industry is that European truth is it never left. Spain is not RAOUL RUPAREL measures. But, when they are so specifically regulators require often inflexible rules. Ken Livingstone lost his job because of his Greece, but, many of the market targeted at the UK’s industry, it’s hard to They’ll fill in gaps during the Level 2 process policies. Now people want him back? They fears surrounding the economy are crisis. The total in unpaid bills now form coalitions with states that either rather than rely on principles and reason. deserve all they get, but why should I suffer? still both well-founded and tops €36bn. Yet again, this cost is couldn’t care less or have a continental Syed Kamall, Conservative MEP for London @Sulalee1 expected. There are three major likely to be transferred to the cen- causes of concern: the exposure of tral government, which can ill Spanish banks, regional afford it, and risks the country miss- governments’ fiscal profligacy and ing its deficit target, further a risk that structural reforms won’t fuelling market jitters. The regions Should George Osborne reverse the cap on reap benefits soon enough. are also expected to contribute 44 The vulnerable banking sector per cent of the planned deficit remains the likely trigger for any reduction this year. But with the income tax relief for charitable donations? future downturn in Spain. One in budget still hot off the press, the five of the loans by Spanish banks to largest and wealthiest regions are the bust real estate and construc- already rejecting Madrid’s ordered tion sectors is seen as “doubtful”, i.e. spending cuts. at serious risk of never being repaid. The good news is that the new Against some €136bn (£112bn) in Partido Popular government is potentially toxic loans, Spanish pushing through some much need- banks hold only €50bn in loss provi- ed structural reforms. YES NO sions. And things are likely to get Unfortunately, it will take time for worse. House prices have declined the benefits to be felt, and in the quickly over the past six months short term they are likely to and may fall by another 35 per cent, increase already skyhigh unemploy- if there is to be the same level of ment while doing little to boost lag- Sir Stuart Etherington JP Floru adjustment as seen in Ireland. ging demand. This is troubling, firstly, because Spain remains a serious and This proposal needs an urgent rethink before it does irreversible The charitable donations incident deflects from the tragedy of zero Spain cannot afford to bail out its diverse economy, with relatively damage. Major donors face at least six months of confusion and growth. Instead of the Treasury’s increasingly desperate measures banks. And, secondly, because good administration and infrastruc- charities are already losing gifts as a result. High-level donations to go after the last crumbs, it should allow the pie to grow. That Spanish banks have been the main ture – talk of a full bailout pro- form a significant proportion of voluntary income, and framing tax means we shouldn’t reverse Osborne’s decision but go further, recent buyers of Spanish sovereign gramme is premature. The most relief on donations to charity as a tax avoidance measure betrays a replacing our complex system of reliefs with a flat income and debt. If these banks don’t have the likely outcome is some sort of aid serious lack of judgement. The generous should be supported, not corporation tax rate of 15 per cent. Excessive tax avoidance results cash to buy Spanish debt, then who for the banking sector – probably pilloried. Nearly 1,000 organisations have signed up to the “Give it from excessive tax levying. If taxes were reasonable, nobody would will? This massively increases the with the help of the European sta- Back, George” campaign, voicing fears about the impact that the bother avoiding them. The light of aspiration and prosperity would prospect of a self-fulfilling bond run bility mechanism. As much as we cap could have on their ability to deliver vital projects and services. wake up the country from its slumber and create a sustainable on Spain and the chances of an ill- hate seeing risk being transferred to It’s not just “household name” charities that stand to lose out; small economic boom in no time at all. Jobs and hope would replace dole fated Spanish bailout. taxpayers, it might be better for grassroots organisations, and a range of faith groups, cathedrals, and dependency. The poorest could finally climb the ladder without Not to be outdone, the regions Spain to swallow this bitter pill now arts organisations and universities, are putting up a united front. In the need for charity or government hand-outs. With the increased look to be harbingering plenty of and ask for aid for its banks, than these challenging times, we need more philanthropy, not less. tax receipts we could start paying back the national debt. It has problems of their own. The regions risk it dragging the whole economy have seen the amount of unpaid – and the euro – over the edge. Stuart Etherington is chief executive of the National Council for been done before; it can be done again. € Raoul Ruparel is the head of economic JP Floru is senior research fellow at the Adam Smith Institute. debt on their books rise by 10bn Voluntary Organisations. (38 per cent) since the start of the research for Open Europe.

4th Floor, 33 Queen Street, Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor & Head of News David Crow Distribution helpline London, EC4R 1BR Business Features Editor Marc Sidwell | Lifestyle Editor Zoe Strimpel | Sports Editor Frank Dalleres If you have any comments about the Tel: 020 3201 8900 distribution of City A.M. Fax: 020 7248 2711 Art Director Gavin Billenness | Pictures Alice Hepple please ring 0207 015 1230, or email Email: [email protected] Commercial Sales Director Jeremy Slattery | Commercial Director Harry Owen | Head of Distribution Nick Owen [email protected] Editorial Statement: This newspaper adheres to the system of self-regulation overseen by the Press Complaints Commission. The PCC takes complaints about the editorial content of publications under the Editor’s Code of Practice, a copy of which can be found at www.pcc.org.uk Printed by Newsfax International, Beam Reach 5 Business Park, Marsh Way, Rainham, Essex, RM13 8RS FRIDAY 13 APRIL 2012 cityam.com 22

WORDS BY PROPERTYDREAM HOMES ZOE STRIMPEL

I’m fairly sure it doesn’t get property is sun-filled year round much better than 100 Pond Bay and designed to ensure that the for a paradise island getaway. This main pavilion and each of five newly built, 8,000 sq ft BVI idyll is a dreamy bedroom suites have five minute drive from the Virgin unobstructed views of the ocean Gorda yacht harbour, commercial and neighbouring islands. centre and main ferry dock of What about the land? Located on A pair of ocean idylls Spanish Town. an acre of virgin hillside, 100 Pond The house, which includes its Bay is brushed by strong tropical own spacious spa, is set back from breezes. A private entrance through the water and slightly elevated, a beautifully landscaped area leads affording views to drool over. A to parking for the main pavilion private path leads you to Pond Bay’s and each suite. We should hope so. in the BVI and Mallorca beaches (pictured) in no time. $8.7m through Knight Frank. What’s extra great about it, www.knightfrank.com or call Christian though? The design, we say: the de Meillac on: (44) 90020 7861 1097.

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FRIDAY 13 APRIL 2012 cityam.com PROPERTYSALES 25

“Securing a mortgage in the current market has LONDON never felt so hard and creeping mortgage BAROMETER rates, with many lenders adding half a percent to ED MEAD Standard Variable Rates, are adding to the tough DIRECTOR OF DOUGLAS & GORDON conditions. However, against a backdrop of continuing short supply, D&G has managed to increase its market share. Longer opening hours and a renewed focus on marketing by all our offices has paid off with one of our best months for new business in the last four years as buyers who are in a position to buy move Properties are still short in supply, but swift buyers can still grab a good deal quickly to secure a deal.”

DOUGLAS & GORDON AVERAGE LONDON SALES PRICE INDEX Supply Demand Supply & Demand Q1 2011 Q2 2011 Q3 2011 Q4 2011 500 2010 2011 2012 1200 2010 2011 2012 1600 Demand 2012 Supply 2012 July 2010 1400 Demand 2011 Supply 2011 1000 Jan 2012 1 bed flat £ 368,333 £ 374,167 £ 383,750 £ 383,500 400 high (448) high (1029) 1200 800 300 1000 2 bed flat £ 543,333 £ 557,083 £ 570,083 £ 579,583 600 800 200 600 400 Dec 2006 400 3 bed house £ 1,174,167 £ 1,209,583 £ 1,257,500 £ 1,277,083 100 low (127) 200 Dec 2011 low (211) 200 0 0 0 4 bed house £ 1,780,833 £ 1,905,833 £ 1,905,000 £ 1,933,333 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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TVQQPSUFE CZ FRIDAY 13 APRIL 2012 26 PROPERTY FOCUS ON cityam.com

CURRENT MORTGAGE DEALS FOCUS ON: CHISWICK Source: MoneySupermarket.com Lender Fixed/Flexible Rate Until APR Maximum Loan (per cent) (per cent) to Value (per cent) Chelsea BS Flexible 2.39 May 2014 5.4 70 Norwich & Peterborough BS Flexible 2.49 2 Years 4.7 75 Yorkshire BS Flexible 2.49 June 2014 4.7 75 Vernon BS Flexible 2.6 2 Years 4.7 70 First Direct Flexible 2.69 2 years 2.8 65 HSBC Fixed 2.54 June 2014 3.9 60 Market Harborough BS Fixed 2.69 April 2014 5.1 75 Hanley Economics BS Fixed 2.69 April 2014 5.1 60 Chelsea BS Fixed 2.94 May 2015 5.3 70 BEDFORD ROAD Price: £3.1m This six-bedroom estate is a great property for relaxation with a south facing garden and a roof terrace. It has two shower rooms and a bathroom. With two reception rooms, the property is per- fect for social gatherings. Contact savills.co.uk or 020 8987 5550

HARTSWOOD ROAD Price: £1.9m This semi-detached family house features five bedrooms, two reception rooms and a spacious entrance hallway. The house has three floors and is approximately 227 square meters. Outside, it has a large west-facing garden. Contact savills.co.uk or 020 8987 5550

THE OLD BURLINGTON Price: £1.25m Dating back to the XV century, this historic grade II house was formally “The Burlington Arms”. With a cellar and a courtyard, this spacious three bedroom home is great for a family looking for a piece of history. Contact savills.co.uk or 020 8987 5550

CHESTERFIELD ROAD Price: £3m This seven-bedroom house has been extensively refurbished to attract a large family. It includes an integrated but self-contained flat, perfect for a nanny or relative. It features a wine cellar and five reception rooms. Contact savills.co.uk or 020 8987 5550 FRIDAY 13 APRIL 2012 PROPERTY FOCUS ON 27

NEED TO KNOW | AREA INSIGHT COMMUTING AND EDUCATION WHAT IS THERE TO DO? A popular suburban retreat from London, Chiswick has a lively sports culture, home Chiswick is located at the start of the M4, to a number of local rugby teams and the which provides a direct route to Heathrow Rocks Lane Multi Sports Centre, where Airport and the M25. There’s plenty of tennis, football, and netball courts are transportation nearby with the Chiswick available for hire to the public. Since the National Rail station and the District line area is located on a meander of the crossing through the region as well, giving Thames River, competitive and recre- access to the city. Chiswick also boasts a ational rowing is popular. It has a mix of great variety of schools, including top trendy shops, restaurants, and pubs. ranked St Mary’ RC School, Grove Park Outdoor activities include the Chiswick Primary School, and Westminster Under Mall and the Gunnersbury Triangle Nature School. Reserve. CHISWICK WHARF LOCAL AREA | PRICES SOURCE: LAND REGISTRY Price: £1.2m This four bedroom, two bathroom property is located close to the Chiswick Mall, a prime walking Detached Semi-Detached Terraced Flats path with a great view of the River Thames. This Georgian style townhouse offers rear views Chiswick £1.2m £1.3m 810,000 £380,000 across communal gardens, and features two formal reception rooms and a separate garage. Contact chesteronhumberts.com or 020 8995 3443

HUNTINGDON GARDENS Price: £950,000 Forming part of a private development of apartments and houses, this four bedroom townhouse features modern designs, including a modern fitted kitchen and breakfast room. This property has a garage and off street parking, three bathrooms and a west facing garden. Contact ches- teronhumberts.com or 020 8995 3443

STRAND ON THE GREEN Price: £795,000 A charming terrace cottage, this property has picturesque views across the river towards the Kew Bridge. This smaller property is great for a young family with two bedrooms, a modern kitchen and spiral stairs leading to the first floor. Contact chesteronhumberts.com or 020 8995 3443

CHISWICK HIGH ROAD Price: £750,000 A spacious split-level flat, this period house has three bedrooms, a large reception room and a separate kitchen/breakfast room. Outside, it has a south facing garden and off-street parking. Contact chesteronhumberts.com or 020 8995 3443

FRIDAY 13 APRIL 2012 cityam.com 29 LIFE&STYLEGOING OUT ‘ Cabin in the Woods has the goods Prepare to be shocked by Joss Whedon’s unusual horror flick, says Steve Dinneen

the benefit of the doubt. You soon FILM realise, though, that it’s all played THE CABIN IN THE WOODS with a knowingly arched eyebrow: this is a horror movie about horror movies, Cert 15 and about the very concept of horror. hhhhi It pokes fun at familiar tropes in the way Scream did 16 years ago, with its he Cabin in the Woods is one of spelling out of the rules: “never drink those films you really need to or do drugs”, “never have sex”, “never, T see before you read about it. ever, ever say ‘I’ll be right back’”. But Ideally, you should stumble where Scream was content to point across it by mistake. I suggest running out the rules, Cabin pulls back the cur- blindfolded into a cinema with your tain entirely, exposing the wonderfully fingers crammed into your ears and grizzly machinery behind it. hoping that by sheer bloody-minded In years to come students will play willpower you end up sitting in the bingo watching this. Cellar filled with right screen as the film starts. This, of creepy dolls? Check. Hands clawing course, puts me in a rather difficult their way from graves? Check. position. So… Well, this is awkward. Dismembered limbs crawling back for I will endeavour not to give too much one last scare? House! It is crammed so away. For the first half hour, you will full of references to classic fright probably wonder what all the fuss was movies – some subtle, some rather less about. It looks, on first sight, like a so – that anyone even vaguely versed photo-fit teen slasher movie (an in the genre will lap it up. American teen slasher movie: this is It’s also very funny. Even the (very important but I can’t tell you why). regular) stoner jokes bear the hall- The five protagonists roll straight off marks of Whedon’s off-kilter dialogue. the horror production-line. You have Some of the gags might be dumb but the slutty blonde, the jock, the stoner, you can laugh at them without feeling the hot geeky girl and the sensitive guilty because, you know, it’s clever. I bloke. They go on a spurious road trip think. to a mysterious cabin, which, I don’t What starts out as a tightly wound think it would be giving too much monster-in-the-window horror eventu- away to reveal, is located somewhere ally spirals into an all-out celebration in the woods. They strip down to their of human entrails. Whedon creates an smalls and swim in the lake. They get early-era Peter Jackson gore-fest on a drunk and play truth or dare. For a late-era Peter Jackson budget. Quite while it’s only by virtue of knowing how he does it… Well, you’ll just have Buffy the Vampire Slayer’s Joss to watch it to find out. I’ll lend you my Whedon is attached that you give it blindfold. Don’t be fooled – The Cabin in the Woods is not your average teen slasher movie FILM FILM DELICACY TRANSIT Hirst’s Tate retrospective is brash, Cert 12A Cert 15 hhhii hhiii WHAT happens when a really attrac- AS everyone knows; it’s really irritat- crass and completely compelling tive woman fancies a not-so-attractive ing when you go on a family camping man? Does the world explode? No, trip not knowing there’s $4m in your according to this typically kooky trunk and that you’re being chased the reception of his last show – electricity in a nearby bug-zapper. French rom-com, where the widowed, by ruthless killers who want it back. ART the man they just hate. A room full of live butterflies, heartbroken Nathalie (Audrey Tautou Jim Caviezel is Nate Sidwell, a man DAMIEN HIRST This retrospective is a reminder preceded by works crafted from on classic “cute” form) finds love again hated by his family due to his past that the first opinion was the corpses of their dead cousins in a gawky but funny Swedish co-work- imprisonment for tax evasion. The Tate Modern justified. There isn’t a single piece is another neat demonstration of er Marcus. trip is supposed to bring them hhhhi that isn’t instantly recognisable as the fragility of life. His later work Delicacy is neither revelatory, nor together but, instead, they end up in Hirst’s. His fascination with death seems to revel in its own particularly fresh but it’s still a lot bet- the centre of a fairly average, rather he killer killed. The has seeped so far into the public crassness – topped by a room ter than that the majority of dull action movie. inevitability and consciousness that seeing these dripping in gold and diamonds – Hollywood rom-coms – largely down to There are a few almost laughably T unfathomability of death. works collected feels a bit like as he struggled to integrate his Francois Damiens, who proves himself predictable twists thrown in for good Death, death, death. Spot, going to a family reunion, or, fame and wealth into the a great comic actor. measure, a lot of intensity from spot, death, spot, death. You perhaps, a brightly coloured recurring themes of his work. It suffers from an unclear narra- Caviezel, and a suitably intimidating know what you get with Hirst. funeral. And then, there is his tive – is Nathalie settling for someone performance from Frain as leader of His pickled shark has The “live” installations are installation in the Turbine Hall: she’s not really into? Is this supposed the bloodthirsty gang after the cash. become shorthand not just the real crowd pleasers. It is For the Love of God (which, to show us that you don’t need to Caviezel (My Own Private Idaho) for his body of work but hard not to gawp with a incidentally, is what you’ll say fancy someone in order to fall in and Frain (Sunshine) are both for a generation of school-boy’s morbid when you see the size of the love with them? It’s more likely far too charismatic and modern art, as have his fascination at A Thousand queue). It takes balls to put a the point is that love moves in interesting to be doing ubiquitous spots, which Years, his giant tank single skull, albeit a rather mysterious ways, etc, etc, but these character-by-num- follow you around the featuring maggots hatching glittery one, in the biggest display this isn’t made clear. Also, the bers roles. Tate like a recurring into flies, feasting on the space in the country. But this is idea of punching above/below Antonio Negret’s migraine. congealed blood of a Hirst – balls are not something he one’s weight isn’t as shocking as direction gives them lit- His career has rotting cow’s lacks. the characters seem to think. tle leeway, and lacks the seen him shift head, only to be The final room of his exhibition However, director David creativity needed to from the man fried in a tiny is – fittingly – a shop: a two- Foenkinos mines as much inject life into pro- who put British burst of fingered salute, perhaps, to those comedy gold as he can from ceedings, leading modern art on who deride his work as mass- the situation – mostly to to a saggy middle the map, to the produced and profit-obsessed. good effect. Stevie and a predictable artist people Hirst’s work Spot t-shirts, butterfly umbrellas, Martin finale after what loved to hate, has lost none skull hoodies. And, if you have a could have been, to – judging by of its impact couple of grand to spare, your Audrey Tautou’s character in at least, sort of Delicacy is in full “cute” mode fun. Stevie Martin FRIDAY 13 APRIL 2012 30 ADVERTISEMENT FEATURE cityam.com A more rewarding way to travel If you’re looking to go further this year, the American Express® Preferred Rewards Gold Card is the ultimate travel companion, rewarding you for your everyday and travel-related spending, and offering a variety of benefits perfect for those with a passion for travel

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9 30 12 30 16 38 6  21 18 SUDOKU KAKURO 17  12 27 Place the numbers from 1 to 9 in each empty cell so that 19 Fill the grid so that each  each row, each column and each 3x3 block contains all the 15 23 5 block adds up to the total 15 34 numbers from 1 to 9 to solve this tricky Sudoku puzzle.    in the box above or to the 15 13 36 4 left of it. 31  You can only use the 9 22 digits 1-9 and you must not 29 26     7     use the same digit twice in 28 a block. The same digit may 11   occur more than once in a 310    24 12 15  row or column, but it must 14 20 8   be in a separate block. 11 17  13 14        21 28   ACROSS DOWN 1 Apostolic (5) 1 Items used to secure    4 Drizzle (4) washing to a line (4) WORDWHEEL 6 ___ Major, the 2 Colourful rice (5)    G D Great Bear 3 Enticements (5) Using only the letters in the Wordwheel, you have constellation (4) 4 Very, very hungry (8)    ten minutes to find as many words as possible, S C 8 Deflect, fend off (5) 5 Connected with none of which may be plurals, foreign words or 9 Time starting when birth (5) proper nouns. Each word must be of three letters A travel in the region 7 Aromatic grey- LAST ISSUE’S or more, all must contain the central letter and H I beyond the earth’s green herb (4) letters can only be used once in every word. There atmosphere became 10 Grandeur (4) SOLUTIONS is at least one nine-letter word in the wheel. possible (5,3) 11 Spreading plants KAKURO R E 12 Yours and mine (4) such as ivy or 13 Enlist (5) periwinkle (8) QUICK CROSSWORD 6 9 8 7 9 2 8 15 Bout, period of 14 Kitchen appliance (4) 413 25 8 1 2 SUDOKU     15 SHEEP B BOP 8 2 8 2 74 indulgence (5) Floral leaf (5) P GENERA A    9 3 4 6 1 5 3 2 17 Boorish (4) 16 If not, then (4) ON I ON I L C   U N C GRAVE 74389 689 19 Giving delight and 17 Large gathering          SINCERE L 17 41 satisfaction (8) of people (5) E E U A N 9 5 9 685 7 3 WORDWHEEL   21 Longs for (5) 18 Nickname for the R SERV I LE 7 2 4 6 1 382   COMMA E K U 22 Genuine (4) southern United 1 25361          L O L SLANT The nine-letter word was 23 Deprivation (4) States (5) U STOREY E 869 7 2 8 9 6 ANGUISHED   24 End resistance (5) 20 Precious metal, EAT N TENOR 1 36 2 1 3 4   symbol Au (4) FRIDAY 13 APRIL 2012 32

THEPUNTER RACING TRADER BILLBleu ESDAILE, OUR RACING EXPERT, is PREVIEWS the THE JOHN SMITH’S GRAND National NATIONAL colour

YNCHRONISED, last month’s Cheltenham Gold Cup winner, S heads the weights and the betting for tomorrow’s John Smith’s Grand National (4.15pm) and will bid to become only the second horse to win both races in the same season. He will be the 17th to line up at Aintree and only Golden Miller, way back in 1934, managed to pull off the double. At the time of writing, he is a best- priced 15/2 with Paddy Power, who incidentally are offering five places for each-way backers, and I can cer- tainly see him starting shorter. However, he isn’t the biggest of horses to shoulder such a massive burden and both his ungainly jumping style and his inability to hold a position certainly won’t help him around Cappa Bleu (left) and Chicago Grey here. (above) are fancied to run well in David Pipe’s Junior is bidding to tomorrow’s John Smith’s Grand National become the first horse to add a Grand National win to a CV that also con- no better man for nursing a horse tains victories at both Royal Ascot and around these fences, although even the Cheltenham Festival. He has a he may have his work cut out if tremendous attitude and it’s hard to Chicago Grey throws in one of his envisage him not playing a part in the occasional howlers. I’m prepared to finish if he takes to the fences. He is as take that risk as these fences may short as 10/1 with Coral and that’s make him concentrate and will take just too short in my opinion for a some of the 14/1 available with Paddy horse who has no secrets from the Power. handicapper. KILLYGLEN was in the process of There has been plenty of money all running a cracker in last year’s race week for mudlarks West End Rocker when falling four fences from home. and Giles Cross, but the ground He arrives at Aintree in better form appears to be turning against them this time round and can race off a five and they can only drift in the betting. pound lower mark than 12 months The first of the four I’m going to rec- ago. He can be backed each-way at ommend and, in my opinion the 20/1 with Coral and that looks fair most likely winner, is the Evan value. Williams trained CAPPA BLEU. The My final selection has to be last lightly-raced 10-year-old has that all year’s winner BALLABRIGGS, narrow- important mixture of class, speed and ly ahead of Becauseicouldntsee and stamina and is available at 16/1 with Black Apalachi. Admitedly, he has to Coral. carry 10lb more than he did 12 The former winner of Cheltenham’s months ago, but he bolted up that Foxhunter Chase back in 2009 has day and arrives here a fresh horse on only seen the racecourse seven times plugged on well with his big weight. marked down as a potential Grand the perfect preparation for the race. the back of only one run at Kelso. since, but really caught the eye when Ever since Gordon Elliot’s CHICAGO National winner. I have absolutely no He sneaks into the race off a lenient Previous Grand National winners third in the Welsh National over GREY won last season’s National doubt that his shrewd handler, who mark (set to carry under 11 stone) and don’t often come back here and win, Christmas. The ground would have Hunt Chase over four miles at the tasted Aintree success back in 2007 has the ideal jockey in the saddle in but they often show up well and I been far too soft that day, but he Cheltenham Festival, I’ve had him with Silver Birch, will have given him the shape of Paul Carberry. There is think he’ll finish in the money. BILL ESDAILE’S 1-2-3-4 SIMON CLARE’S 1-2-3-4 PADDY POWER’S 1-2-3-4 1 Cappa Bleu2 Chicago Grey 1 Ballabriggs2 The Midnight Club 1 On His Own2 According to Pete 3 Killyglen4 Ballabriggs 3 Seabass4 Rare Bob 3 Becauseicouldntsee 4 Seabass Oscar Whisky primed to land another Aintree Hurdle IT isn’t easy to pinpoint value on and was only just touched off by promises to suit and the rain that WHISKY and there is every chance the challenge of Thousand Stars. this afternoon’s Aintree card, but I Riverside Theatre in the Ryanair came earlier in the week has made he can pull off the same treble That rival takes him on again, but don’t think the bookmakers have this year. He also won this race in the ground perfect for Philip tomorrow. I’d expect my selection to confirm got it right in the John Smith’s 2010 and finished second to Hobbs’ runner. Both Simonsig and Sprinter the form. Rock On Ruby has to be a Melling Chase (3.05pm). I’m a big Master Minded last year. He is a Nicky Henderson had a Sacre are sure to go off very short danger on his Champion Hurdle fan of Finian’s Rainbow, but he has tremendously gutsy horse and is memorable Grand National prices in the opening two contests, form, but he had a tough race that always struck me as a genuine two- worth a bet at 10/3 with Paddy Saturday 12 months ago, but Oscar Whisky is certainly day and I’d actually be more miler and he has been beaten both Power. despite not even backable at 9/4 with Coral in the scared of his stablemate times he has been stepped up to It was a real shame that having a runner in John Smith’s Aintree Hurdle Zarkandar. If Sporting Index offer 2m4f plus. He’s 5/4 with Coral, but FINGAL BAY didn’t make it the big one. (2.45pm). There seems little doubt a match bet on the two Nicholls it’s a long punishing straight at to Cheltenham as it would He landed that Dai Walters’ pride and joy is runners, I’d definitely favour last Aintree and I’m happy to take him have been fascinating to see the first best at 2m4f and it looked as year’s Triumph Hurdle winner. on with the remarkable him take on Simonsig in the three though he simply didn’t stay when ALBERTAS RUN. Neptune Novices’ Hurdle. races on taking on Big Buck’s in the World n Pointers… Jonjo O’Neill’s 11-year-old has Compensation awaits, however, the card with Hurdle last month. ALBERTAS RUN 3.05pm Aintree (today) never been given the credit he in this afternoon’s John Smith’s Spirit Son, He showed real guts when deserves, but he has won three Sefton Novices’ Hurdle (4.15pm). Finian’s winning this race last year, FINGAL BAY 4.15pm Aintree (today) times at the Cheltenham Festival The step up to three miles Rainbow and OSCAR sticking his neck out to hold off OSCAR WHISKY 2.45pm Aintree (tomorrow) Grand National Office Sweepstake 40 horses, 4 1/2 miles, 30 fences. It’s the world’s most famous steeplechase at Aintree tomorrow, and Bill Esdaile casts his expert eye over the field. ✄

Synchronised Ballabriggs Weird Al Neptune Calgary Bay Alfa Beat Planet Of Sound Black Apalachi Deep Purple Junior Collonges 7/1 14/1 50/1 40/1 28/1 50/1 33/1 40/1 66/1 10/1 Gold Cup winner Last year’s winner Disappointed at Grey old timer who In top form but did - Irish-trained out - Classy but encoun - Now a teenager but Impressed two Royal Ascot and ridden by AP McCoy but much more Cheltenham but had stays all day but has n’t get past the sider who has failed ters this trip and was runner-up here starts back at Cheltenham Festival and will go off weight in the saddle excuses, needs to been deserted by fourth last year and to complete on last these fences for the in 2010 and loves Sandown but jump - winner who could favourite this time bounce back Ruby Walsh has a big weight two starts first time the place ing still a worry re-write history

Chicago Grey Tatenen Seabass Shakalaka- West End Rocker According To Pete On His Own Always Right Cappa Bleu Rare Bob boomboom 14/1 80/1 20/1 25/1 12/1 25/1 12/1 28/1 16/1 40/1 A dashing grey with Decent on his day Katie Walsh could Wins the prize for Won the Becher Malcolm Jefferson The mount of Ruby Not without a The big hope from A solid jumper from plenty of stamina but would be a big become the first the best name but Chase impressively will be doing a rain Walsh and could chance but has Wales and he has all Ireland who proba - but has some surprise if he was female jockey to needs to prove his and must have a big dance for this easily finish on his failed to finish on the key attributes bly lacks the class jumping issues good enough win the National stamina each-way chance soft-ground lover own in front his last two starts needed to win and stamina to win

Organised- Treacle The Midnight Club Mon Mome Arbor Supreme Sunnyhillboy Killyglen Quiscover Tharawaat Because- confusion Fontaine icouldntsee 20/1 14/1 33/1 40/1 66/1 20/1 20/1 40/1 150/1 20/1 Last year’s Irish Irish runner who Finished sixth last 2009 winner but is Form figures read Cheltenham Festival Was running a Fourth in last year’s Nothing he has Got no further than National winner has will be staying on year but reportedly getting on a bit now more like a number winner who has a stormer when Irish National and achieved so far the second last year a squeak for Nina when others have didn’t enjoy the and needs to find plate and looks massive chance falling four out last one of the more would suggest he is but not ruled out at Carberry cried enough experience some form outclassed if staying trip year and respected likely outsiders up to this decent price

State Of Play Swing Bill Postmaster Giles Cross Midnight Haze Vic Venturi In Compliance Viking Blond Hello Bud Neptune Equester 40/1 100/1 150/1 11/1 100/1 66/1 100/1 100/1 66/1 150/1 Been placed the last Didn’t seem to Won his last two but Second in the Welsh Doesn’t look capa - Has gone well over Grand old stager but Only seven and that The grandad of the Sneaks in at the three years but Paul enjoy the fences will be a huge National and big ble of giving Kim the course before looks the weakest of age group have a race and hasn’t bottom of the field Moloney deserts when he ran here in surprise if he bags shout if more rain Bailey a second but struggling for Dessie Hughes’ very poor record in been good enough but has been in him tomorrow December the hat-trick arrives overnight National win form this season four runners the National in the past terrible form FRIDAY 13 APRIL 2012 34 THEPUNTER FOOTBALL cityam.com BEN CLEMINSON, OUR FOOTBALL EXPERT, WITH HIS BEST FA CUP SEMI-FINAL BETS TOTTENHAM ...... CHELSEA...... Sunday 6.00pm, ITV1

HE intensifying battle for the top The boys in four takes a back seat this Tweekend as two of the principle rivals for the final Champions League spot go head-to-head at Wembley. Given Tottenham’s current league form – one win, three draws and four defeats in their last eight outings – blue to have Harry Redknapp’s charges will be glad of the distraction, and another chance of reaching a first FA Cup final in more than two decades. Since Gary Mabbutt lifted the 1991 trophy, they have lost semi-finals to Arsenal twice, Everton, Newcastle and Portsmouth. Despite that, and their their way at troubling league run, Spurs are favourites, albeit marginal ones, to pre- vail in Sunday evening’s contest. They are 8/5 with Coral to win in normal time and, with the game to be decided on the day, a general price of 5/6 to qual- ify by any means. As well as this match, and their own Wembley Chelsea have lost only one of their previous six meetings with Tottenham tilt at fourth place, Roberto di Matteo has another spinning plate to handle, in the shape of a Champions League they have only lost one of the previous hallowed turf. However, the teams Coral. I do, though, expect Chelsea to Furthermore, the last eight Spurs- semi-final clash with Barcelona, with six meetings between the sides and they haven’t been split after 180 minutes of take their place in the final for the Chelsea matches have recorded a total the first leg of that tie commencing less look a far more united outfit under Di Premier League action this season after fourth time in six years and fancy a bit haul of 16 goals, so a sell of Sporting than 72 hours after the final whistle at Matteo’s guidance. They have lost only a 1-1 draw at White Hart Lane in of Blue Square’s 12/1 for them to win in Index’s prediction of 2.6 for this match Wembley. once since he took over from Andre December and a goalless encounter at extra time as well as the evens available is advised. While Redknapp may hope that Villas-Boas and have won eight of his 11 Stamford Bridge last month. for Chelsea to qualify. n Pointers… clouds Chelsea’s focus, there seems lit- games. They were also level after 90 minutes Whatever happens, I don’t see there tle prospect of them not being suffi- Chelsea might be relying on an age- in the 2008 Carling Cup final, before being many goals. Since Wembley Draw at 11/5 with Coral ciently motivated. ing squad, but they have all been here Jonathan Woodgate’s extra-time winner reopened, six of the 10 FA Cup semis Chelsea to win in extra time at 12/1 with The Blues have let their dominance and done it before, so will be more than for Spurs, meaning there is plenty of played under the famous arch have seen Blue Square slip a little in this fixture of late, but comfortable on the national stadium’s appeal about the draw at 11/5 with two or fewer scored in 90 minutes. Sell total goals at 2.6 with Sporting Index

desperate to deliver the FA Cup from Andy Carroll earned those suspensions to Pepe Reina and LIVERPOOL...... to Anfield. three points, so Coral’s offer to Alexander Doni, while Not that any of that will refund losing bets on first/last Everton’s success is built on EVERTON...... concern David Moyes. Although scorer, correct scores and their solid foundations. Everton have lost both league scorecasts if the last goal is Selling goals with Sporting Tomorrow 12.30pm, ESPN matches to their neighbours scored from a header could be Index, at 2.3, is again the call this season, the Scot will be worth keeping in mind, but from a spread betting HIS departure might not have convinced that his players have Everton have a great perspective and both the 1-0 an effect on the playing staff, got it in them to deny his fellow opportunity to win this game. and 2-0 scorelines to Everton but the timing of Damien countryman, Kenny Dalglish, a Moyes’s men look a good look perfectly feasible. They Comolli’s Liverpool exit is more place in a second domestic investment at 15/8 with Coral to have earned five of 13 league than a little odd, coming this showpiece of the season. win in normal time. wins by a goal to nil and are on close to such a huge game for The Toffees are certainly the Unfortunately for spectators a mini-spree of 2-0 triumphs, the club. in-form club. They have at the games and on TV, this with six registered in 2012 The Reds lifted the Carling leapfrogged their neighbours in match should set the tone for a already. Have 1-0 as the main Cup yet, rather than use that as the table on the back of taking low scoring weekend at bet of the two at 8/1, with a a launch pad, they have 10 points from their last four Wembley as I don’t see either saver on 2/0 at 14/1, both at undermined their achievement games and have lost just twice side having the appetite for an Coral. by allowing their season to go in three months. Liverpool's attacking approach. almost completely flat. There is victory at Blackburn was their Liverpool will be keen to n Pointers… no prospect of Champions first in the league since beating protect Brad Jones, who is set to League football next season, for Everton in mid-March and only make just his second start since Everton at 15/8 with Coral a third year in a row, so their second in nine top-flight joining from Middlesbrough in Everton to win 1-0 at 8/1 with Coral everyone at the club will be matches. An injury-time header August 2010 thanks to the Sell total goals at 2.3 with Sporting Index Brad Jones is set for just his second Reds start FRIDAY 13 APRIL 2012 35 Everyone who has come in since Damien has been‘ here was my choice. He did a fantastic job SPORTcityam.com/sport of bringing them in Dalglish muddies Liverpool’s transfer policy Daglish given Liverpool UNSTOPPABLE BIG BUCK’S IN 17TH HEAVEN backing as Comolli axed BY FRANK DALLERES to make some changes, and begin the COMOLLI’S SIGNINGS search for Frenchman Comolli’s UNDER-FIRE Liverpool manager replacement, as thoughts turn to Kenny Dalglish has been given a ring- n Luis Suarez, £22.8m from Ajax summer recruitment. ing endorsement by the club’s n Andy Carroll, £35m from Newcastle “We’re coming close to the end of American owners and backed to stay the season and the transfer window in charge beyond the summer, after n Stewart Downing, £20m from Aston Villa for the summer, and we felt it was the axe fell on director of football n Jose Enrique, £5m from Newcastle important to make this change expe- Damien Comolli yesterday. n ditiously,” he added. Dalglish’s position has come Jordan Henderson, £16m from Sunderland Werner conceded FSG had been under increasing pressure following n Charlie Adam, £9m from Blackpool “dissatisfied” with a season that will the Reds’ worst run for 59 years and n Sebastian Coates, £6m from Nacional not reap Champions League qualifica- amid criticism of his public pro- tion and relies on beating Everton nouncements, not least in relation to n Craig Bellamy, free from Man City tomorrow to keep alive FA Cup hopes. the Luis Suarez racism accusations. n Alexander Doni, free from Roma Comolli was hired in 2010 to over- But on the eve of tomorrow’s FA n TOTAL £113.8m see Liverpool’s transfer policy but

Cup semi-final it is transfer guru Dalglish emphasised he himself had GETTY Comolli who has paid the price the last word on all signings and instead, with Liverpool chairman tions, and so the answer is there will called the former Tottenham direc- BIG BUCK’S made racing history yesterday by claiming a 17th successive race victory, in Tom Werner insisting no further be no future changes of significance.” tor’s departure “disappointing”. the BGC Partners Liverpool Hurdle at Aintree. Ruby Walsh eased the Paul Nicholls- changes were on the horizon. A vote of confidence is often seen The Merseysiders’ business has trained nine-year-old, who was a 2-9 favourite, to a nine-length triumph on the first day “We’ve got great confidence in as a harbinger of an imminent sack- come under scrutiny following the of the Grand National meeting to surpass Sir Ken’s 1950s run of wins. Kenny. We feel the team is going to ing, but Werner’s words of support expensive failures of Andy make strides in the future and he hint that Dalglish will remain in Carroll, Stewart Downing, enjoys our full support. We don’t charge not just for this season but Jordan Henderson and Charlie envisage any other changes,” said beyond. The American stressed that Adam, who cost a combined Werner. “We’ve got great confidence he and owners Fenway Sports Group £80m last year, to deliver on in the other people in football opera- “prefer stability” but felt compelled lofty expectations. Lancaster honeymoon over as

Farrell snubs England position THE ULTIMATE EXPERIENCE BY TOM ROBINSON anywhere near half done, and I world class coaching team as we have decided I want to help look towards the Rugby World ENGLAND head coach Stuart finish the job.” Cup in 2015,” said Ritchie. Lancaster has suffered the first Rugby Football Farrell’s decision to stay loyal to major blow of his fledging tenure Union chief executive Sarries leaves a gaping hole in the after Saracens’ Andy Farrell Ian Ritchie remains England set-up ahead of the three- rejected the opportunity to join confident this setback Test tour to South Africa in June. his staff on a permanent basis. will not hamper rookie Favourite to fill the void is Farrell, an integral part of the Lancaster’s mission former New Zealand attack interim coaching team that to return specialist Wayne Smith, steered England to second place England to the currently with Super 15 side in the Six Nations last month, pinnacle of Waikato Chiefs, although insists he has unfinished business world rugby. his unavailability for the with the Premiership champions. “We will summer trip could “We have made decent progress continue to prove a stumbling during this period but, in truth, work hard block. as a club, we have barely with Stuart scratched the surface of our Lancaster to Farrell says his work at potential,” he said. “The job isn’t build a Saracens is not yet done IN BRIEF Results Webber’s Bahrain doubts superior to FA Cup semi-final >FC= opponents Chelsea. Bale said: :fccXk\[]`ijkifle[jZfi\j`ek_\::#BlXcXCldgli#DXcXpj`XÇ >Yi@iclec\jj Mark Webber has admitted jkXk\[#gXi.) 1-+:JZ_nXikq\c IjX #-,AD`cb_XJ`e^_ @e[ #--C reach the final because I feel we Ffjk_l`q\e IjX #AIXe[_XnX @e[ #ABelkqfe LJ8 #-.J>XccXZ_\i#8 motorsport chiefs have a have the better team.” Chelsea CXjZleX G_` #I:XYi\iX9\ccf JgX #-/I>feqXc\q 8i^ #JBa\c[j\e “massive decision” to make will be without defender ;\e #>>_\` @e[ #GD\\jXnXk K_X #INXkk\c =iX #A>iXeY\i^ =`e % Experience corporate entertainment at its finest over whether to cancel this Branislav Ivanovic, after his :I@:B 1 Efkk`e^_Xdj_`i\(-( ,0%*fm\ij2>Fe`fej+$+) %;li_Xd,,$* ))%' at all Arsenal home matches. Gulf state. “If we have a choice, fm\ij #CXeZXj_`i\mJljj\o C`m\igffc 1CXeZXj_`i\()+ ,)%)fm\ij2JA I want to race,” said Webber, Shearer: Name boss now :if]k,'2A<8epfe,$*- %Jljj\o(*.$* +(%'fm\ij2D?PXi[p.'ef % n D`[[c\j\omJlii\p Cfi[Ëj 1D`[[c\j\o%)),$0%Jfd\ij\km who added: “There is no FOOTBALL: Former England NXin`Zbj_`i\ <[^YXjkfe 1Jfd\ij\k(+. *0%,fm\ij2:A:Ni`^_k t: 0845 262 0001 beating about the bush, it is striker Alan Shearer has urged +$+. %NXin`Zbj_`i\((($* */%'fm\ij % sensitive out there.” the Football Association to J<:FE;;@M@J@FEÇ;\iYpj_`i\m>cXdfi^Xe K_\JN8C<:JkX[`ld 1 e: [email protected] ;\iYpj_`i\(*' ,'%'fm\ij2>>NX^^-$++ %>cXdfi^Xe*.$+ (/%' Meanwhile, McLaren’s Lewis appoint Fabio Capello’s fm\ij #>cflZ\jk\ij_`i\m?Xdgj_`i\ K_\8^\Xj9fnc 1>cflZ\jk\ij_`i\ Hamilton has been handed a successor immediately and (0,$+ -'%'fm\ij2:;A;\ek,0ef#@8:fZbYX`e,)ef # arsenal.com/clublevel five-place grid penalty for this remains convinced Tottenham Efik_Xdgkfej_`i\mB\ek Efik_Xdgkfe 1Efik_Xdgkfej_`i\(*) ,/%( fm\ij %B\ek().$* *.%'fm\ij % weekend’s Chinese Grand Prix manager Harry Redknapp is the due to a change of gearbox. right man. “I would absolutely KF;8PËJ;@8IP 100 per cent still go for Harry .%+,gdlec\jjjkXk\[ Spurs star taunts Chelsea Redknapp,” he said. “Now the egfn\i:_Xdg`fej_`g time has come and so be it if DOZD\VDKHDGRIWKHJDPH n Jflk_XdgkfemI\X[`e^%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% FOOTBALL: Winger Gareth they upset one or two people.” egfn\iC\X^l\Knf Bale insists Tottenham are 9Xie\km?\i\]fi[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 9cl\JhlXi\9\kGi\d`\i1=c\\knff[KemC`eZfce:`kp .%*' %