BUSINESS WITH PERSONALITY MAPPING THE FUTURE A NEW WEALTH HOW LONDON COMPARES TO THE WORLD’S OTHER TECH HUBS PUZZLE See Page 19 Ryan Bourne in The Forum, Page 24 ISSUE 1,764 TUESDAY 20 NOVEMBER 2012 www.cityam.com FREE THE OSTRICH LAURA A.M. LAURA LEAN/CITY GENERATION The Mayor of London called for billionaire divorce claims to head to London Brits are burying their heads in the sand over retirement plans BY MICHAEL BOW Boris slams plans for property BRITAIN’S young savers are wildly underestimating how much they 31% need to save each month for a of 25-34 year olds tax as stamp duty hits market comfortable retirement, after a expect to retire on national survey found just one in more than BEN SOUTHWOOD with a welter of tax hikes and new 10 is putting money aside for a £30,000 a year charges. Homeowners selling proper- pension – despite having high expec- BORIS JOHNSON yesterday slammed ties for over £2m now face stamp duty tations for their final pension pots. Liberal Democrat politicians who are at seven per cent if the transaction is Just 12 per cent of Britons between calling for property tax hikes, while in their own name, rising to 15 per 25-34 years old are saving for retire- £13,200 urging Google and other companies cent for firms. ment, even though one third hope to Average income criticised for tax avoidance to do Since 77 per cent of properties retire on £30,000 a year, some £4,000 of single more to benefit the UK. worth more than £2m are located in above the average salary. pensioners today “It is absurd to be suddenly whack- the capital, London has already This is equivalent to a typical 35- ing up taxes on cash-poor people who begun to feel the impact of the tax year-old funnelling £750 a happen to inhabit expensive houses barrage. month into a pension pot, or a in London when firms like Google are And plans are in the pipeline to 25-year-old putting away £400 a 32% paying zero,” he told the audience at impose a further yearly charge of up month for retirement. of Britons are not the Confederation of British to £140,000 on companies using these The mismatch in expecta- planning or saving £600,000 Industry’s annual conference. properties, as well as hitting the busi- tions will fuel fears that mil- for their retirement your future in is the total pension into a pension. “Neither arrangement strikes me as nesses with a further capital gains lia- lions of Britain’s young people, the future... The pot required to be However, at the being fair, and so Google and co face a bility. starved of generous defined benefit stark reality is that able to retire at 65 current auto- very clear choice: they can either The Mayor used much of the rest of pension schemes and saddled with putting something on £30,000 a year enrolment saving change their tax arrangements, or do his speech to wax lyrical over the ben- high debts and soaring house prices, aside for old age has become a rate of two per cent, much more work to serve our society.” efits of doing business in London, will retire in poverty. necessity.” a typical worker will The Mayor of London’s comments calling on oligarchs to make use of The survey, conducted by YouGov, The dangers of not saving soon only be saving roughly come after devastating statistics London’s courts – sending the money found 25-34-year-olds were the thrifti- enough are apparent after figures £44 a month – hundreds of pounds released yesterday showed the effect trickling down through the city. est generation in the UK, with 18 per show a 35-year-old would have to save short of what they want. that higher taxes have already had on “I have no shame in saying to the saving money from their disposable twice as much as a 25-year-old to be National Association of Pension London’s property market. injured spouses of the world’s billion- income, but for more near-term aims able to retire with a £600,000 pension Funds chief executive Joanne Segars Across Greater London, sales of aires: if you want to take him to the such as houses, holidays and cars pot, enough to buy a £30,000 a year said: “Young people have a lot on their properties worth between £2m and cleaners, take him to the cleaners in instead of retirement. pension. plates and face great financial pres- £5m collapsed 53 per cent in the year London,” he said. “Because London Tony Stenning, UK head of retail at The government is currently sures like student debt or saving for leading to the third quarter this year, cleaners will be grateful for your busi- the world’s biggest fund manager attempting to solve the savings chal- their first home, but they should still London Central Portfolio said yester- ness.” BlackRock, which commissioned the lenge by introducing a law making it think about a pension. An early start day. In this year’s Budget, the govern- ALLISTER HEATH: Page 2 survey, said: “You really can’t build compulsory for workers to be enrolled can make a big difference.” ment slapped expensive properties MORE: Page 16

Certified Distribution FTSE 100 5,737.66 +132.07 DOW 12,795.96 +207.65 NASDAQ 2,916.07 +62.94 £/$ 1.59 unc £/€ 1.24 -0.01 €/$ 1.28 +0.01 01/10/12 til 28/10/12 is 129,297

Meet London Business School Speak informally with a London Business School representative about our portfolio of top-ranked Masters programmes and receive advice on the right programme for you. NEW HONG KONG Wednesday 28 November 2012: Novotel London Tower Bridge, 10 Pepys Street, London EC3N 2NR YORK Thursday 29 November 2012: Hilton Canary Wharf, South Quay, Marsh Wall, London E14 9SH DUBAI Please join us at any time between 11.00 and 15.00 Find out more and register your interest at: www.london.edu/meetlbs/ Email: [email protected] or call: +44 (0)20 7000 7500 TUESDAY 20 NOVEMBER 2012 2 NEWS To contact the newsdesk email [email protected] It is shocking just how much tax most workers have to pay NCE again, Boris Johnson is taxable income – are expected to pay being hammered, with even mini- trously deluded. Stamp duty was making sense on tax. He is an astonishingly large £14.8bn in mum wage earners paying a scan- hiked to 7 per cent (or more in some right to be calling for a lower EDITOR’S income tax, substantially more than dalous share of their wages in tax. cases) for homes worth £2m+ this O tax economy and to oppose the £13.9bn paid by the bottom 13.6m Economists usually agree that year. In London, sales under £2m increasing the tax on homeowners – taxpayers who earn £20,000 or less (a employees, not employers, pick up the dipped one per cent in the third quar- while simultaneously demanding the LETTER number which is in fact even larger as bill for national insurance, even that ter. But sales of homes worth £2m- elimination of the loopholes that it doesn’t include those whose earn- part misleadingly known as employ- £5m collapsed 53 per cent compared mean that the current system is ings are so low that they fall below ers’ NI (wages would be commensu- to the third quarter of 2012, accord- riddled with problems, especially ALLISTER HEATH the income tax threshold). rately higher in their absence). The ing to Land Registry data analysed by when it comes to corporation tax. On average, those earning £500,000 combined tax on labour is extremely London Central Portfolio. This will The reason Boris’ position makes in London – pay a massive amount. or more pay an average of 43-44 per high. Income tax and NI mean work- have triggered a decline, not an more sense than most other politi- The top one per cent – those on cent of their incomes in income tax ers pay a shocking 40.25 per cent tax increase, in tax receipts for that cate- cians’, including many of those in incomes from employment, self- (they also pay national insurance as on earnings between £8,105 and gory of homes, in a stark illustration government, is that the Mayor realises employment, interest or dividends of well as indirect taxation). The top £42,475; 49 per cent on £42,476- of Arthur Laffer’s famous curve. that while there is plenty of avoid- £156,000 or more a year – are expect- 2,000 earners pay £2m each on aver- £100,000; 66.1 per cent between Britain is obsessed with tax avoid- ance, and that this needs to be dealt ed to pay 24.2pc of all income tax age in income tax alone. This is why £100,000-£116,210; and 57.82 per cent ance. This will only be solved through with, the silent majority of non- 2012-13, even though they will earn the decline of the City and the drop in on £150,000 or above. Of course, there comprehensive tax reform. But most avoiders already pay far too much tax. only 10.8 per cent of all income. The the number of high earners is terrible is much more to tax than direct tax: people are already appallingly over- The amount handed over by most pro- top 10 per cent – on £50,500 or more a news for the Treasury: in 2009-10, Vat and duties hit everybody but the taxed. Their vast contribution to the fessionals in the City in particular is year – will pay 55.3pc of all income 16,000 people earned £1m or more; in poor disproportionately so. Exchequer should not be forgotten. monumental. tax while earning 33.2 per cent of all 2010-11 just 6,000; in 2011-12 10,000 The increasingly popular idea that Take the figures for income tax. income. The top 31,000 individuals – and in 2012-13 a mere 8,000. taxing property would be an easy way [email protected] High earners – many of whom work those set to earn £500,000 or more in The poor and middle classes are also of raising even more money is disas- Follow me on Twitter: @allisterheath Hollande hit by JP Morgan picks Moody’s rating Government to lay out Lake as new CFO BY JENNY FORSYTH downgrade JP MORGAN Chase has named Marianne Lake as its new chief finan- BY BEN SOUTHWOOD new plans for energy bills cial officer (CFO). Lake, currently CFO of JP Morgan FRENCH President Francois BY CATHY ADAMS Chase’s consumer and community Hollande was hit with yet another banking business, will step into the downgrade last night, as Moody’s THE GOVERNMENT is expected to new role next year. She will take over took the Eurozone’s second biggest get tough on energy companies from Douglas Braunstein, who will economy down a ratings peg. today, with ambitious proposals to become the bank’s vice chairman. In another blow to President reduce bills for consumers. Lake’s former positions include Hollande’s fiscal policy, French Energy secretary Ed Davey is to global controller of the company’s government debt was cut to an Aa1 make a speech this afternoon, in investment bank. Prior to that she rating, from Aaa, following a which he is expected to outline worked in London as the senior similar decision from Standard & plans that he hopes will help con- financial officer for the company in Poor’s in January. To add salt to the sumers reduce their growing gas the UK. wound, the ratings agency and electricity bills and make it easi- maintained its negative outlook, er for households to switch suggesting its assessment could providers. worsen further. Last month, energy regulator And as well as Hollande’s fiscal Ofgem unveiled proposals to force Ex-banker calls issues, France’s long-term suppliers to tell customers about the problems, particularly its “gradual, cheapest tariff they have on offer. sustained loss of competitiveness” The government is thought to PPI claims mad were once again blamed, in line favour a plan that limits firms to with assessments from the IMF and providing just four various tariffs Energy secretary Ed Davey wants consumers on the lowest energy tariffs BY BEN SOUTHWOOD an independent French each for gas and electricity. commission. Moody’s also The regulator also wants suppliers next few weeks, and it is also under- market is being manipulated, follow- BANKS have given in to “mad” levels expressed worries about the to simplify the way they express tar- stood to include plans to reform the ing a whistleblower’s allegations. of compensation to victims of “disproportionately large” trade iffs, including clearly presenting electricity market to enable invest- The government last week pledged payment protection insurance (PPI) and banking linkages between dual fuel tariffs separately. ment in low-carbon generation capac- to use the “full force of the law” on mis-selling, former HBOS retail risk France and peripheral Europe – Earlier this month, Davey said that ity in the UK. those abusing the wholesale market. chair Sir Charles Dunstone claimed claiming it could he susceptible to the government was studying the Over the past few weeks, five of the Consumer groups have given a cau- yesterday. future Eurozone shocks. regulator’s plans, and was “attracted “big six” energy companies – includ- tious welcome to plans for clearer Sir Charles said banks But the ratings agency did to many” of them. This followed stri- ing SSE, British Gas, EDF, Scottish energy tariffs, but questions remain “surrendered” to the £11bn package express some optimism about the dent criticism of the utilities from Power and npower – have hiked prices over how the government would force set aside for victims, due to their government’s “commitment to Prime Minister David Cameron, who for bills, blaming the increases on the firms to choose and then change cus- unpopularity – going on to say that structural reforms and fiscal hinted that the government would rise in wholesale gas prices. tomers onto the most cost-effective he didn’t think the policies were consolidation,” and said it hoped force firms to put consumers on the In a case of bad timing for the sector, tariffs. Shadow energy minister mis-sold in the way alleged by the these could mitigate some of lowest tariff. this was followed by a Financial Caroline Flint last month accused the Financial Services Authority, talking France’s deepest problems. The Energy Bill is due to be pub- Services Authority (FSA) investigation Prime Minister of “making it up as he to the Parliamentary Commission on lished for its second reading in the into claims that the UK wholesale gas goes along”. Banking Standards. WHAT THE OTHER PAPERS SAY THIS MORNING $26.1bn (£16.4bn) in mortgage relief to financially struggling homeowners as part SAS staves off bankruptcy of a settlement with regulators agreed Commercial hospitals hit by decline MP challenged over family firm’s tax Weather investments seeks $5bn earlier this year. Joseph Smith, monitor for SAS has staved off the immediate threat the national mortgage settlement, said The owner of Britain’s leading chain of Margaret Hodge’s position as chairman of Weather Investments, the company of bankruptcy after all eight unions that about 309,000 borrowers had commercial hospitals has written £811m the Public Accounts Committee has been controlled by Egyptian billionaire Naguib representing flight personnel at the received some form of relief from Ally off the value of its properties as it called into question following revelations Sawiris, is seeking $5bn (£3.1bn) in damages Scandinavian airline signed up to wage Financial, Bank of America, JPMorgan struggles with big debts and a declining over the tax affairs of Stemcor - the £6.3bn- from Algeria, claiming its mobile phone unit cuts of up to 15 per cent. In a marathon Chase, Citigroup or Wells Fargo. number of private patients. turnover business controlled by her family. tjere was the victim of harassment and negotiating session that lasted from untoward government interference. Sunday morning until yesterday Ecclestone faces new legal case Spain offers home for home Greek companies face annihilation afternoon, SAS managed to convince one Fiat sweetens offer for CNH Global union after another to sign up to the deal. Bernie Ecclestone faces a new legal Spain is to offer automatic residency to Greece’s recession-hit businesses face challenge over the 2005 sale of Formula wealthy foreign property buyers in an “annihilation”, a leading chamber of Fiat Industrial sweetened its offer to buy out US banks give $26bn mortgage relief One after a private equity group filed a attempt to lure Chinese and Russians to commerce has warned, as a double whammy minority shareholders of its US subsidiary, $650m lawsuit claiming he conspired with reduce its huge stockpile of 750,000 of falling sales and job cuts meant the state CNH Global, adding a $288m (£181m) cash Five of the largest US banks have provided others to prevent it buying the series. unsold properties. was in its worst economic shape for 14 years. dividend to its original share swap. CITYAMCAREERS.com The new jobs website for London professionals TUESDAY 20 NOVEMBER 2012 cityam.com NEWS 3

Cash boxes explained and What is a cash box placing ? with shares priced at whatever cent threshold allowed Q A Q level it deems suitable. under pre-emption rules. A cash box placing allows a It has incorporated a vehicle called Acompany to issue new shares by What are the advantages of using this Weir Developments Limited, which bypassing pre-emption Qstructure? can then lend fund by way of redemption of the redeemable requirements – meaning without The structure allows companies preference shares. shareholder approval – provided Ato raise more money than they they are issued for a non-cash might otherwise be allowed in a consideration, such as the shares of quick transaction and without Which other companies have used the another company. seeking shareholder approval, Qstructure? which can be expensive and time- Property developer Great How does the structure work? consuming. APortland Estates recently raised Q £140.6m from a cash box placing to The listed company incorporates How has the structure been used by help fund further acquisitions in a new subsidiary to act as the so- QOcado? the West End. Drax also raised A £190m using the mechanism last called cash box. It will inject cash Ocado is using the vehicle to month. BAE Systems, Logica and into the unlisted shell company raise 10 per cent of its share A Misys have all used cash box and then buy that shell, paying capital, breaking the usual five per structures in the past.

Ocado’s management, including CEO and co-founder Tim Steiner, own eight per cent Ocado investors MONDAY MORNING MEETING prop up £36m Escape to the Maldives. It’s a long way from the everyday. London Gatwick to Malé. Flights + 7 nights capital raising hotel from £989pp. Book by 22 November BY KASMIRA JEFFORD over fears it could breach its banking covenants, soared more than 23 per at ba.com OCADO’S shareholders ploughed cent yesterday. more money into the online grocery But analysts remained doubtful over chain yesterday to support a £36m its long-term prospects. Shore Capital placing that will keep the firm finan- analyst Clive Black said the use of a cially stable for at least 18 months. cash-box placing “shows the con- Existing shareholders including straints that Ocado is facing.” Jorn Rausing of the Tetra Pak dynasty Black described the 11 per cent sales and Ocado’s management team took growth Ocado posted for the 14 weeks up around 19 per cent of the shares to 11 November as “unspectacular” placed, in line with their current compared to its bricks and mortar holdings, advisers said. rivals, with the group still failing to The fundraising was part of a deal generate sufficient cash. with lenders that will see Ocado’s BOTTOM LINE: Page 8 debt facility extended, giving the loss- making firm breathing space to open Ocado Group PLC 75.00 a second warehouse in Warwickshire. p 19 Nov Ocado said Barclays, HSBC and 75 Lloyds have agreed to extend its £100m capital expenditure facility for 70 an extra 18 months to July 2015. It said the placing was “much a 65 planned strategy” and denied that it had been in danger of breaching 60 covenants tests due in December. Shares in the retailer, which have nearly halved in the past six months 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov ADVISERS fundraising in 2010. British Airways fl ies direct Ham also ran Numis’ involvement in the from the UK to more flotation of Hugh Osmond’s cash shell Indian Ocean islands Horizon on the Alternative Investment than any other airline. ALEX HAM To Fly. To Serve. NUMIS SECURITIES Market in February 2010, and in 2011 acted for Horizon on its £527m acquisition of temporary power provider APR Energy, which was then reversed into the cash shell. NUMIS Securities and Goldman Sachs acted He also advised Betfair on its flotation in as joint bookrunners on Ocado’s share plac- 2010 and New-York based Investcorp on its ing. The teams were led by Alex Ham, co- bid for Opsec, the maker of anti-counter- head of corporate broking at Numis and Phil feiting technologies last year. Raper, head of UK equity capital markets Ham, who was named rising star of the and chairman of corporate broking at year at the 2011 City A.M. Awards, is also a Goldman Sachs. senior adviser on corporate broking and Ham, 29, has worked at Numis since 2005, equity capital markets to online fashion Extremely limited availability. Price is in GBP per person based on two adults sharing at Thulhagiri Island Resort on a half board room basis, and includes return fl ights from LGW to Malé for selected travel between 01/05/13 and 17/07/13. Price is based on midweek travel (Monday to Thursday), weekend and has worked with Ocado before, helping retailer Asos, global software firm Micro supplements may apply. Prices include all pre-payable taxes and charges, correct as at 31/10/12, but may vary. Book by midnight 22/11/12. Some to secure the 10 per cent cornerstone Focus and student accommodation group payment methods attract a handling fee. Holidays are ATOL protected (number ATOL5985). For full terms and conditions visit ba.com investor needed in the online grocer’s IPO Unite. TUESDAY 20 NOVEMBER 2012 4 NEWS cityam.com G20 takes aim at Shareholders shadow banking BY JULIAN HARRIS THE GLOBAL financial regulator formed by the G20 has revealed its set to approve bid to take tighter control of the shadow banking sector. The Financial Stability Board (FSB) said that it would seek to regulate the industry and thereby reduce systemic risk that could lead to another financial crisis. Glenstrata deal “The objective is to ensure that shadow banking is subject to BY CATHY ADAMS would vote in favour of the tie-up, but appropriate oversight and regulation abstain from voting on the manage- to address bank-like risks to financial XSTRATA shareholders are expected ment incentives. A source close to the stability emerging outside the to vote through the £56bn mega- deal said that given the way the sover- The FSA’s Andrew Bailey says investment and retail banking arms should be separate regular banking system,” said the merger with Glencore this afternoon, eign wealth fund will vote, other FSB. following months of negotiations shareholders may vote tactically to between the two commodity giants. ensure that the merger is approved. Today’s shareholder meetings, the Even if the merger is approved this FSA’s Bailey says banks should first of which is scheduled for 1pm in afternoon, the deal still has to be Lonmin gets go Switzerland, come nine months after approved by European regulators commodities trader Glencore first before the deadline on Thursday. be forced to ring-fence retail approached miner Xstrata. Glencore has offered up antitrust ahead for issue The two meetings will include four concessions – thought to be zinc arm BY CITY A.M. REPORTER banks would try to “tunnel under” resolutions, thanks to a complicated Nyrstar – in the hope of securing a nod any ring-fence set for them. BY CATHY ADAMS arrangement allowing shareholders from the EU. BRITAIN’S banks should be forced “This is an industry which is to approve the deal but not the £140m to fully separate their retail arms tremendously innovative at LONMIN shareholders voted through remuneration package for Xstrata THE FORUM: Page 25 from investment banking thinking of ways to dress things up its $817m (£513m) rights issue staff. operations if they try to to look slightly differently,” Bailey yesterday, as they questioned the It could cast doubt on Sir John Xstrata plc 956.80 circumvent new rules designed to told the Parliament Commission board on issues of governance. Bond’s future as chairman of the p 19 Nov protect the taxpayer, a top on Banking Standards. The rights issue, announced last enlarged group, after he backed the regulator warned. MPs are debating what should be month, is designed to cut debt and retention bonuses. 965 Andrew Bailey, head of banking allowed inside the ring-fence and shore up the balance sheet following Stakeholders are widely expected to 960 supervision at the Financial Adair Turner, the FSA’s chairman, the six-week strike at South African green-light the deal – sweetened in Services Authority (FSA), said said there was a case for retail mine Marikana over the summer. September to 3.05 new shares for each 955 banks should face the threat of banks to be allowed to sell simple Lonmin had warned it would be Xstrata share – but vote against the 950 being broken up if they fail derivative products to small left in a “highly vulnerable” position management incentive arrange- properly to comply with proposals companies. if the cash call was not voted ments. 945 to ring-fence retail deposits from “We can see some arguments through. After Glencore, Xstrata’s largest riskier activities. why a relaxation might be More than 90 per cent of investors shareholder Qatar said last week it 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov He warned there is a risk that legitimate,” he said. backed the firm’s plans. TUESDAY 20 NOVEMBER 2012 cityam.com NEWS 5 COMET ANNOUNCES MORE JOB CUTS Terra Firma to spend Judge throws £3.2bn on real estate out AIG lawsuit BY CITY A.M. REPORTER

BY JENNY FORSYTH for the last 15 years, 10 of those A LAWSUIT by AIG’s former chief while at Terra Firma. executive Hank Greenberg alleging DEALMAKER Guy Hands’ buyout “(Annington) is a pure play UK the Federal Reserve Bank of New group Terra Firma has agreed to residential property company with York broke the law during the buy Annington Homes from a blue chip tenant on a lease of 2008 government bailout of the Nomura in a deal worth £3.2bn. over 180 years and with the ability failing insurance company was Hands, best known for the to benefit from the strength of the yesterday dismissed. high profile loss of music group property market,” Hands, Starr International, once a large EMI to Citigroup after the chairman and chief investment shareholder in AIG, argued the US private equity investor defaulted officer of Terra Firma, said in a acted unconstitutionally when it on its loans, was behind statement. took 80 per cent of AIG’s equity. Nomura’s purchase of Annington Homes became one of But the US District court ruled Annington in 1996 when he the largest private owners of UK the New York Fed did not have worked at the Japanese bank. residential property when it control or fiduciary responsibility He has managed the bought the Married Quarters Estate just because AIG felt it had “no investment on behalf of Nomura from the Ministry of Defence. choice” in taking the bailout.

Comet yesterday announced 735 further redundancies, in a bid to save cash as the troubled company tries to find a buyer for the best parts of the business. Some 603 employees working for its home delivery network were made redundant, along with 132 from the firm’s head office – but no staff in stores have so far lost their job. Brits want more housing but not high speed rail BY MARION DAKERS capacity as their preferred project, while four per cent want a new high THE BRITISH public would like to see speed rail line the most. the government invest in or facilitate The High Speed 2 Action Alliance, more house building to boost the flag- which lobbies against HS2 and com- ging economy, according to a poll out missioned the research, said the poll yesterday. showed public opinion lags behind the However, a survey suggests that coalition’s ambitious plans. there is less support for building new The lack of enthusiasm for aviation airports and runways or for beefing expansion has not deterred air chiefs up the country’s rail infrastructure. from banging the drum for more Four in ten people believe that gov- capacity, however. ernment support for building more Ryanair boss Michael O’Leary told homes is the best way for the state to the transport select committee yester- boost the economy through infra- day that the UK needs “at least three structure projects, according to a poll [new runways]: one at Heathrow, one of 1,442 people by Ipsos Mori. at Gatwick, one at Stansted, as fast as Two in ten see improve- possible”. However, he mocked the ments to roads as the best idea of a new hub in the Thames option, while 14 per cent Estuary as “insane, stupid, hare- think work on existing rail brained”, stopping himself of going infrastructure would be the much further as “in parliamentary most effective way to language it would be kickstart growth in unprintable”. this manner. In contrast, five per cent chose Transport secretary expanding air Patrick McLoughlin is being kept busy The public’s view on infrastructure Infrastructure Project % who think this is best option Build more homes 40% Improve existing road infrastructure 20% Improve existing rail infrastructure 14% Improve and extend high speed broadband 8% Increase airport capacity 5% Build a new high speed rail line 4% None of these 5% Don’t know 3%

TUESDAY 20 NOVEMBER 2012 8 NEWS cityam.com Ocado delivers on its debts but profits aren’t in the bag

EFORE anyone gets too excited time high of 140,000 orders in one than trying to build out as fast as CHINESE DIET about Ocado’s share price week this November, but it still possible in the manner of the HSBC’s talks over selling its 15.6 per rising by more than a fifth BOTTOM remains to be seen whether it can notorious US dot-com flop Webvan. cent stake in Chinese insurer Ping Byesterday, the troubled online scale its way to significant profit. Both of these were supposed to hold An fit with a year in which it has grocer is still trading at less than LINE The debt extension should give it costs down, but while steering away shed 40 assets. It is on a post-crisis half its original float price of 180p, time to open its 400,000 square foot from one set of dangers, Ocado has diet, but this move is not a signal of which was itself at the bottom of distribution centre in Dordon, veered dangerously close to the swearing off Chinese growth. the hoped-for range back in 2010. MARC SIDWELL Warwickshire in 2013, which can opposite verge. Slow and steady HSBC is boosting its capital – its Yesterday’s raising of £35.8m serve 200,000 more weekly orders. growth to a fixed plan only works if stake in the insurer is worth an staved off Ocado’s most immediate That would make quite a difference the world of grocery stands still estimated £5.6bn – and focusing its problems, after it had been forced But the placing of 55.87m new in revenue, if the orders come in, around you. Today the online attention in the middle kingdom. to deny speculation at the weekend shares was achieved by turning to but only if the costs to reach new delivery space is increasingly hard- At the start of the year, Stuart that it was close to breaching its investors who had already customers don’t mount up too fast. fought, and its competitors are Gulliver said he wanted to either debt covenants. The arrangements committed themselves to Ocado. It Ocado committed itself to a growing faster. Meanwhile chains grow HSBC’s 20 per cent stake in announced yesterday morning was about doubling down, rather radically different business model like Tesco are evolving click and China’s Bank of Communications, explained its confidence, with the than being the sign of wider for online delivery, operating solely collect models that storeless Ocado or increase HSBC’s Chinese branch banks agreeing to extend its confidence the firm really needs. from distribution centres to cut out cannot compete with. Buying some network. Whichever regulatory borrowing facility for another year That reflects a general problem the cost of public stores. It also took time is a start, but Ocado still has a hurdle proves lower will determine and a half. for Ocado. The company hit an all- a slow and steady approach, rather lot to deliver. what HSBC sheds next. HSBC in talks to sell $9bn China insurance stake

BY MICHAEL BOW Ian Gordon, a banking analyst at Investec, said a sale would be positive 8 aspiring traders tackle the markets under HSBC yesterday revealed it was in as there was a lack of strategic fit talks to sell its 16 per cent stake in between Ping An and HSBC. He said the mentorship of 2 City Index experts China’s second largest insurer Ping the current stake may be sold for as An in a move that would bolster the much as $9.3bn. to win a grand prize of £100,000 bank’s capital balance sheet. He added the likely balance sheet The firm said in a joint statement gain on a sale, pegged at $2bn to to the London and Hong Kong stock $3bn, could be given back to share- market it was in “discussions” with holders or used to increase its 19.9 buyers over a sale. per cent stake in another Chinese It followed media reports in the business, Bank of Communications. Hong Kong Economic Journal that A sale would be in line with HSBC’s the stake was being pursued by CP group strategy review announced in Group, a conglomerate owned by May 2011, which sought to achieve Thailand’s richest man Dhanin $3.5bn of savings by 2014 to stream- Chearavanont. line the bank. A HSBC spokesman told City A.M. HSBC’s current core tier 1 capital the bank could not reveal if advisers ratio of 9.6 per cent would be bol- had been appointed to work on a stered by a sale as it seeks to hit its tar- deal but said valuation was “critical” get of 10.5 per cent. Shares closed up to any sale. He added there was no 2.83 per cent yesterday. urgent need to sell the firm. HSBC took a stake in Ping An in HSBC Holdings plc 618.30 Ashraf Laidi James Chen 2002 and boosted its holding to 19.9 p 19 Nov per cent in 2005, investing roughly City Index Chief Global Strategist City Index Chief Technical Strategist 615 $1.7bn in the firm, before being diluted down to a 15.6 per cent. 610 Ping An is China’s second biggest 605 insurer behind Pacific Insurance Company of China Group. Its shares 600 plummeted close to a two-month low Think You Can Do Better? Open an account today yesterday, closing down 1.9 per cent 595 at HK$58.50, after falling as low as $57.50. 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov ING wins more time from the EU to sell assets and repay state aid 50 per cent. cityindex.co.uk/trading-academy BY CITY A.M. REPORTER It also gave the bank until 2018 DUTCH banking and insurance to sell or list its insurance and ##TradingAcademy group ING has won more time investment management arms, from regulators to shed assets and though parts of these assets must repay government aid, avoiding a be sold earlier. The regulator fire sale but keeping it under state originally ruled ING should divest supervision for longer and delaying the businesses and repay state Spread bets, CFDs & FX are leveraged products & can result in dividend payments. funds by the end of 2013. The EU’s competition watchdog ING said it will face restrictions, losses exceeding your initial deposit agreed yesterday that ING, which such as limiting its ability to make received €10bn (£8bn) of state aid in acquisitions, until 2015 or until the 2008 financial crisis, would over 50 per cent of its insurance have until 2015 to repay the and investment management remaining €3bn, plus a premium of operations are divested.

TUESDAY 20 NOVEMBER 2012 10 NEWS cityam.com Fund managers complain that Lloyds offloads VOLUME OF INVESTMENT GRADE SYNDICATED LOANS PLUMMETS Irish loan book $45.3bn $31bn Record megamergers have little value INVESTMENT GRADE $86.9bn BY JENNY FORSYTH played a role in the lacklustre IPO BY CITY A.M. REPORTER SYNDICATED LOANS REFINANCING market. And according the survey INVESTMENT GRADE CITY investors take a dim view of by Capital Spreads, over a third (36 Lloyds Banking Group has taken a of total COPORATE DEBT 59% loan volume the value of megamergers and per cent) went further, saying 90 per cent loss on £1.47bn of on last year 69% on last blame investment bankers for valuations had been “a major cause troubled Irish real estate loans lowest since 2009 4% on last year year weakening the IPO market with of the IPO market’s poor after selling them to US firm 67% unrealistic valuations, a new survey performance.” Apollo Global Management. out today claims. Despite their generally bearish The sale for £149m will not have A poll of fund managers from stance, three quarters thought a material impact because the UK CORPORATE IG FIXED INCOME VOLUME (1 Jan - 16 Nov) 200 major City investment houses Direct Line’s IPO would prove to be value of the loans had been largely found 72 per cent believed a success, while a fifth believed it written down previously, Lloyds LOAN DCM DCM AS A % OF TOTAL megamergers such as that of would be a major success. said yesterday. 180 $$bn bn 80 % Glencore and Xstrata offer little or Angus Campbell of Capital The end of a property market 160 70 % no value to shareholders. Spreads, said: “London simply bubble in Ireland saw commercial Some 70 per cent of the group, hasn’t been seeing the sort of real estates prices fall by two 140 with collective assets under activity it once did in the nineties thirds. Lloyds has provided for 60 % 120 management of over $10 trillion and early noughties when losses of 66.8 per cent on its Irish 50% (£6.3 trillion), also said investment corporate takeovers and mergers wholesale loans book, its first half 100 bankers’ unrealistic valuations had were a regular occurrence.” results showed. 40% 80 30% 60 40 20% 20 10% 0 0 % 2008 2009 2010 2011 2012 Firms shunning syndicated loan offer for bonds

BY MICHAEL BOW volumes, some 69 per cent. This is the largest percentage since UK businesses’ use of syndicated 1994. loans has plunged to the lowest lev- Loan Market Association director els since 2009, as more and more Nick Voisey told City A.M.: “Given the firms use corporate bond markets to lack of corporate M&A activity and access financing, figures out yester- general level of uncertainty in the day show. global economy it’s not surprising, as Syndicated loan volumes for UK one of the main uses of syndicated corporate borrowers, which meas- loans is the financing of corporate ures money lent by a group of acquisitions. lenders to one borrower, now stands “However, the fundamental at $45.3bn (£28.5bn) for the current strengths of the product remain, for year –a 59 per cent drop versus the example its flexibility in providing same period last year and its lowest working capital facilities for corpo- level since 2009. rates.” The drought in syndicated loans The data reveals that despite the has been replaced by the use of cor- drop in volumes there were still large porate bonds, with volumes standing deals on the table, with BG Energy at a record $86.9bn for the current and Tullow Oil signing up to loan year, up 67 per cent compared to the facilities that both surpassed the same 2011 period. $3bn mark. The figures, published by Dealogic, Lloyds Banking Group was the dom- shows the refinancing of syndicated inant bookrunner for corporate loans loans comprises a large part of the with a ten per cent market share. City of London Gains for NB revenues jump Private Equity BY MICHAEL BOW BY CITY A.M. REPORTER Financial services group City of NB Private Equity, the Dutch private London yesterday said a 169 per equity fund listed in London, cent rise in half year revenues had yesterday said its net asset value had lifted its profits by a quarter. increased 3.6 per cent in the last The firm, which recently raised nine months. £1.3m through a share placing, The increase was led by realised lends to small businesses and said gains of $21.8m (£17.6m) from sales the pullback of traditional bank of private equity holdings in its lending had been a boon for the portfolio. The firm also revised up its firm. Chief executive Eric Anstee unaudited NAV figure published for said the firm now had a platform October by 0.5 per cent, increasing for its ongoing development into a from $11.35 to $11.41. “traditional merchant bank This represents a 0.2 per cent decline model”. in value versus the previous month. cityam.com NEWS 11 RSM Tenon says watchdog has stepped back

BY MICHAEL BOW analysts said it was unlikely RSM turned a profit in the period. RSM BELEAGUERED accountancy firm RSM Tenon announced a restructure of the Tenon yesterday warned its most business in February on the back of a recent turnover figures had disap- continued losses of £8.9m for the full pointed management expectations, year ending June 2012. but the firm was still making impres- “We continue to make progress in sive profits. restoring RSM Tenon to profitability,” The company, which announced it is chief executive Chris Merry said. cutting 400 staff to trim costs and “With new banking facilities in place, turn around the business, said in its we look forward to the future with interim management statement yes- confidence.” terday that revenues in the first quar- The bank entered into new arrange- ter were at the “lower end of ments with its lenders to extend the management expectation”. maturity facility to December 2014. However, due to cost cutting the The firm is aiming for an earnings firm said it had managed to improve margin of 10 to 15 per cent. profits compared to last year. RSM Tenon, listed on the FTSE 250, RSM Tenon Group PLC 6.50 also said the “heightened supervision” p 19 Nov its financial management division received from the Financial Services Authority after a £700,000 fine in 7.25 February, for failings in advice and sales processes. was at an end. The 7.00 firm described its current relationship with regulators as “business as usual”. 6.75 The firm’s first quarter, running from July until the end of September, is traditionally its weakest period, and 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov Accountants expect bonuses to fall after mixed financial results BY ELIZABETH FOURNIER to receive bonuses at around 15 per cent of their total remuneration ACCOUNTANTS in the UK are for 2012-13 – an average of £9,087 expecting their bonus pots to fall per person. Added to the average this year according to research salary of £59,900, total released yesterday, after profits per remuneration is projected to be partner at the big four firms fell by £68,987 – a two per cent fall from up to five per cent. last year’s figure of £70,300. Both bonuses and overall “Previous years’ dip in bonus remuneration are expected to fall levels and the mixed fortunes of by around two percent, mirroring the big four have clearly influenced the decline of the past two the perception of upcoming financial years, said accountancy bonuses among accounting and finance recruiter Marks Sattin. professionals,” said Dave Way, Most accountants are expecting managing director at Marks Sattin.

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Novotel London Blackfriars, 46 Blackfriars Road, London SE1 8NZ SCAN FOR VOUCHERS Novotel.com | Accorhotels.com TUESDAY 20 NOVEMBER 2012 12 NEWS cityam.com Bad loans at Spanish lenders Bullish Cameron confident of hit a record high in September industrial new orders collapsed winning battle over EU budget BY JULIAN HARRIS by a seasonally adjusted four per BAD loans at Spain’s banks cent. struck a new high in September, Across the 17-country euro BY CITY A.M. REPORTER more money through the EU EU spending. “The PM believes we it was revealed yesterday, as a area as a whole, meanwhile, budget,” the PM said. can work through these details to wave of negative data releases production in the construction BRITAIN believes a deal can be Meanwhile the spokeswoman get the right deal at this week’s poured more misery on the sector sank by 1.4 per cent in reached on the European Union gave no reason for the change in summit,” she said. troubled euro area. September compared to the budget at crunch talks in Brussels tone, but said Cameron had in The think tank Open Europe last Figures from the Bank of Spain previous month – reflecting the this week, a spokeswoman for recent days spoken to leaders in night talked up the UK’s position. showed banks’ bad loans recession that the bloc has fallen David Cameron said yesterday. Poland, Sweden, Denmark, France, “The EU could not ‘circumvent’ standing at 10.7 per cent of their into this year. The optimistic tone came as Germany and the Netherlands, and the UK’s veto,” it said. “It could outstanding portfolios in Compared with a year earlier, Cameron insisted that he is a “good would be calling other EU leaders in move to roll over the 2013 spending September – the highest level on production in the building sector European” for attempting to drive the coming days. ceilings adjusted to inflation with record and up from 10.5 per cent was down 2.6 per cent in the down the EU’s budget rise. All but one of those countries – up to 55 individual spending items a month earlier. Eurozone in September. “I think I have the people of Poland – contacted so far are net decided by Qualified Majority And in nearby Italy – another Yet markets shrugged off the Europe on my side in arguing that contributors to the EU budget, and Voting. This would be extremely large Eurozone state under data, rising on hopes for a deal to we should stop picking their more likely to be sympathetic to UK messy and the UK’s veto remains pressure from a debt crisis – avoid a fiscal cliff in the US. pockets and spending more and demands for a real terms freeze in powerful.”

The Eurogroup, led by Jean-Claude Juncker, will try again to reach agreement today Tentative deal over Greek aid expected today

BY JULIAN HARRIS appears to have done enough, howev- er, to convince the Eurogroup to pass FINANCE ministers from Eurozone a “political endorsement in princi- states are expected to finally reach ple” over releasing new funds, an agreement over the next tranche sources told Reuters. of bailout cash to Greece today, Following any agreement, the pro- despite recent disagreements posals – along with a plan for how between international lenders. Greek debt could be made sustain- The Eurogroup of finance chiefs able – will be sent to national govern- will meet in Brussels for its latest ments for approval, with Brussels attempt to wave through a deal. hoping the measures could be passed Yet the payment of an estimated by the end of the month. 44bn (£35bn) in emergency loans to If all conditions are met and agreed Greece is likely to be conditional on by 3 December, the Eurogroup will Greek politicians demonstrating the meet in Athens and sign off the funds government is fully committed to to be transferred that week. agreed reforms called “prior actions.” Yet the process still faces stumbling Greece yesterday approved laws to blocks, according to researchers at enforce budget targets and ensure Daiwa Capital Markets. “With privatisation proceeds are used to Germany continuing to resist a sec- pay off debt, as it seeks to appease its ond restructuring of Greece’s remain- bailout providers. ing outstanding debt, any The government used decrees to agreement... is likely to result in only force through the measures, but cosmetic changes to the country’s faced protests from government debt burden, with an inevitable sec- workers, many of whom could lose ond restructuring possibly postponed their jobs due to the reforms. only until after the German elections The Greek coalition government next year,” Daiwa said in a note. TUESDAY 20 NOVEMBER 2012 cityam.com NEWS 13 Lamprell increases loss forecast following review of business

BY CATHY ADAMS The forecast losses follow a review of the business, which RIG maker Lamprell yesterday assessed how the delays to projects warned that its losses for the full would impact Lamprell’s financial year would increase significantly, position. six weeks after axing three The rig maker last month axed executives following its fourth three senior executives, including profit warning of the year. chief executive Nigel McCue, after The company now anticipates a chairman John Kennedy warned total loss of $105m (£66m) for the that he would consider changing year as a result of delays to the management team to shore up projects, up from previous its reputation. Last week the FTSE projections of between $12 and 250-listed company appointed $17m. Frank Nelson as interim finance Middle-East based Lamprell said chief with immediate effect. that it was in talks with its banks Despite the bleak outlook, to seek a waiver to certain banking shares soared in trading yesterday Peter Whitbread returned as Lamprell chief executive last month covenants. to close up 17.33 per cent. Mitie revenue UK100 | WALL ST | DAX | NASDAQ | S&P | CAC | GOLD | BRENT CRUDE | COPPER | EUR:USD | GBP:USD | USD:JPY | EUR:GBP | APPLE | RBS | VODAFONE | GOOGLE boosted by key contract wins

BY CATHY ADAMS the wider healthcare market. Mitie’s order book stood at £9bn at REVENUE at outsourcing firm Mitie the end of September, up 4.7 per cent jumped 5.6 per cent over the six from the £8.6bn in March. months to September, as it hailed Chief executive Ruby McGregor- recent contract wins for the boost. Smith yesterday welcomed the results Turnover jumped to £1.03bn as the in a “tough economic climate and a FTSE 250-listed company was flattered difficult macroeconomic climate”, by several large contract wins, includ- adding that there is a “strong pipeline ing a £775m deal with Lloyds Banking of sales opportunities”. Group, thought to be its largest-ever “We remain positive about the range contract. of outsourcing and energy services Total revenue growth is expected to opportunities across our key markets,” accelerate in the second half of the she said. year, Mitie said yesterday, largely Pre-tax profit rose 1.9 per cent to thanks to new contracts and the £48.8m, excluding exceptional costs. acquisition of home care company Enara in October. New contracts for MITIE Group PLC the firm, which runs services from maintenance and cleaning to baggage p 280.00 screening, include a £100m five-year 19 Nov contract with BSkyB and a contract 300 worth between £70-£120m with Golding Homes over 10 years. 290 Following on from the acquisition of Enara, the outsourcing firm added 280 that the £8bn home care market had “excellent organic growth opportuni- 270 ties” and was a good entry point into 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov WHAT ARE YOUR ANALYST VIEWS THOUGHTS ON MITIE’S Interviews by Cathy Adams HALF-YEAR RESULTS? ANDY BROWN PANMURE GORDON “Oh Dorothy, hold me as These are solid first-half results from Mitie with profits up two per cent. While challenges remain in its main markets the group has increased its order tight as a Capital Spread.” “book, providing high revenue visibility, and management expect further progress to be made. We maintain our neutral stance. CAROLINE DE LA SOUJEOLE SEYMOUR PIERCE” capitalspreads.com Spread Betting | CFDs Half-year results came a touch lower than our expectations, reflecting weakness in the property and asset management divisions. The outlook state- “ment reads well with management anticipating higher growth in the second half reflecting new contract awards and the impact of acquisition. The tightness of our spreads is legendary. PEEL HUNT Spread betting carries a high level of risk to your capital and can result CHRISTOPHER BAMBERRY ” in losses that exceed your initial deposit. Mitie has decided to reduce its exposure to large, one-off mechanical Capital Spreads is a trading name of London Capital Group Ltd (LCG), which is authorised and regulated by the and electrical installation projects over the next two to three years. First half pre- Financial Services Authority and a member of the London Stock Exchange. Take a better position “tax profit was only up two per cent, and while we anticipate a better sec- ond half, we continue to see better value elsewhere in the sector. ” 90 TUESDAY 20 NOVEMBER 2012 cityam.com CITYA.M.CHRISTMAS APPEAL2012 15

UR Christmas Appeal in support of Opportunity International has got off to a flying start this year. Since the Oappeal was launched just last week, Smart savings for the poor £212,568 has already been raised. Such a healthy start to the 2012 campaign puts us in a good position to match or even Everyone has savings, even the poorest people. So, how do they keep their savings safe? surpass last year’s appeal total of £1.58m, which was a truly stunning figure. The launch of the appeal in last Wednesday’s COMMERCIAL BANKS City A.M. was followed by a sumptuous dinner DIY SAVINGS in the evening at St Paul’s Cathedral. The event was attended by many City figures, including Stagecoach Group founder Ann All poor countries have a Rejected by the banks, you do it yourself Gloag, Big Society Capital’s Nick O’Donohoe, commercial banking sector. Citigroup’s Kristine Braden and former Lloyds However, poor people are Banking Group director Truett Tate, who has CATTLE SAVINGS just joined the board of Virgin Group. often excluded for 2 reasons Turn your cash savings into Opportunity International helps people set cattle and hope that they don’t up their own businesses in developing coun- fall ill or get stolen tries by providing loans, savings facilities and HOLE IN THE financial education. In the coming weeks, we will be providing a guide to how the charity GROUND SAVINGS operates and explaining the difference the Store your savings in the charity’s intervention can make to people’s ground and hope no one lives. or nothing destroys them Every pound donated by City A.M. will be matched pound for pound by UK Aid from the UK Government, which is backing our cam- GEOGRAPHIC UNDER THE paign. SOCIAL The banks (concentrated in the cities) MATTRESS SAVINGS RESULT: Mainstream banks focus on serving are far from where most poor people Store your savings under your LIFE SAVINGS ARE Proudly Matching your wealthy people not poor people. live (in rural areas) mattress and hope no one sponsored by donations with The types of financial products they finds them OFTEN LOST OR STOLEN, offer and the literacy/documentary requirements they impose put them MAKING AN ESCAPE out of the reach of most poor people RESULT: DEAD END FROM POVERTY EVEN LESS LIKELY. OPPORTUNITY SAVINGS

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online at: www.cityam.com/appeal HOW TO by text: CITY13 and amount (£5 or £10 only) to 70070 Text donations may not work from company mobile phones as these often block premium messages. credit or debit card by phone to: GIVE Opportunity International TWEET#cityamappeal with details of why you’ve donated. These (01865 725 304) comments may be printed in future editions If donations exceed our programme needs in Africa, of City A.M. they will be deployed elsewhere. TUESDAY 20 NOVEMBER 2012 16 NEWS cityam.com Lawyers and business at odds over Cameron’s appeals plans “missing the point.” proposals to cut back on the BY BEN SOUTHWOOD “It is a myth that judicial process, saying it could boost the LAWYERS said David Cameron’s review is stopping the economy. “Planning cases plans to cut down on judicial government from proceeding make up a very small number reviews, announced in a speech with policies to help boost the of total judicial review cases, yesterday, were a red herring economy,” he said. but by speeding up the process when it came to promoting He pointed out that the it would deliver economic growth, but business number of judicial review significant benefits in groups responded warmly to the cases had actually gone terms of enabling proposals. down since 2006, if cases economic activity to The Prime Minister had only related to asylum take place more promised to cut back judicial and immigration were quickly,” said chief reviews, saying many were excluded. executive Liz Peace. “completely pointless” – but But British Policy Adam Chapman at Kingsley Foundation welcomed David Cameron plans to Napley said Cameron was the government’s limit the number of appeals LAURA A.M. LAURA LEAN/CITY Sir Roger Carr said isolated wrongdoers should not tar the reputations of all UK businesses CBI’s Carr says Britain should stay within EU

BY BEN SOUTHWOOD understood sceptics’ issues with the bloc, and slammed it for its attempts THE GOVERNMENT must avoid an to increase its budget despite difficult exit vote in any EU referendum, the austerity across member countries. UK’s most prominent business lobby As well as keeping the UK firmly part said yesterday, in order to preserve of the EU, Sir Roger also called on the trade links with its “old friends” on government to pursue a vigorous the continent. industry policy, to radically reform “Whilst we look for new partners, schools to give students a more robust we must not forget old friends,” said and well-rounded education, and to Sir Roger Carr, president of the continue travelling around the world Confederation of British Industry, in to extol the virtues of UK Plc. his speech to the industry group’s This came in a speech where Sir annual conference yesterday morn- Roger made a forceful case for the role ing. of business in society. “We must stop “Europe, however challenged, saying all energy companies rip you remains home for half our exports…it off – when they don’t – all bankers are is the bedrock of our international despicable, when they are not – or big trade. It should be viewed as the business is bad business, when it isn’t,” launch-pad from which our global he said. trade can expand – not the landmass Carr said that business has to salvage from which we retreat.” its stature by demonstrating it is His pro-EU line was firmly embraced “focused not just on how much money by Ed Miliband, leader of the opposi- we make – but how we make money”. tion, who said that leaving the supra- But he slated businesses and figures national body would leave the UK that had dragged its reputation without a seat at the negotiating through the mud, giving commenta- table. “I will not let Britain sleepwalk tors a free hand to “tar all with the toward exit from the European same brush – and to poison the minds Union,” he promised. of many as to the value of business in But the Labour leader said that he society”. Cable says trade with emerging markets is not a zero sum game

BY BEN SOUTHWOOD But Cable went on to warn that these growing economies also FAST GROWTH in developing presented commercial countries represents an competition for the UK – and opportunity as well as a challenge, pointed out that other rich claimed Dr. Vince Cable yesterday. economies were also relying on the “Global growth is undeniably Brazilian, Russian, Indian and good news,” he told the Chinese markets. Confederation of British This came in a speech which the Industry’s annual conference. “We business secretary used to focus should welcome the fact that vast on schemes the government were swathes of humanity...are now promoting to boost science, clawing their way out of poverty – technology and engineering. they will expand the markets into He hailed the government’s which we sell. decision to maintain funding for “We don’t live in a zero sum these technical subjects even as it world.” slashed funding for humanities. TUESDAY 20 NOVEMBER 2012 cityam.com 17 Got A Story? Email [email protected] THECAPITALISTcityam.com/the-capitalist EDITED BY CALLY SQUIRES BARELY a function goes by enterprise: “We need to abandon without Mayor Boris Johnson the rhetoric of austerity.” But popping up in some form or couldn’t resist a self-deprecating another to dispatch a crowd-pleas- plug of his Olympic success: “The ing speech in faux bumbling fash- only piece of transport to malfunc- ion – and yesterday’s tion was a zip-wire.” Confederation of British Security measures at the hotel Industry’s (CBI) annual conference entrance were particularly strin- was no exception. gent – The Capitalist can not recall However the Mayor’s popularity any airports in which such a thor- appears to be rightly placed. There ough frisking was deployed. Not aren’t many people who could fill once, but twice! General cautious- a ballroom the size of the ness or all thanks to Johnson’s Grosvenor’s in a post (long) lunch newfound celebrity status? slot. Johnson was talking up British Mayor of London Boris Johnson LAURA AM LAURA LEAN/CITY Left to right: Michael Morley, chief executive of Coutts; Emma Hill, creative director of Mulberry; and Sir Rocco Forte, chairman and cheif executive of Rocco Forte Hotels Lots of luxury in Whitehall for Walpole bash BACK to Banqueting House in accepted their awards and then it was Whitehall again this year for the off to members’ club Annabels for the 11th Walpole Awards for Excellence. real after party. Anthony Head was master of cere- Excelling in their categories and monies for the luxury body’s annual taking home Walpole trophies were gathering. The actor, of Gold Blend Mulberry for British Luxury Brand, coffee advertisements and Ferrari for International Luxury Buffy the Vampire Slayer Brand, Burberry for Online British fame, was perhaps a less Luxury Brand, Jaguar for British “on brand” choice of host Luxury Brand Overseas and jew- than last year’s compère - eller Theo Fennell for Luxury Downton’s dashing Hugh Craftmanship. After accepting Bonneville. his award Fennell revealed: “I Nevertheless guests such was absolutely thrilled as this is as Coutts boss Michael the first award I’ve won Morley, Burberry cre- since I was 13 when I ative director won a prize for throw- Emma Hill and ing a cricket ball – and hotel tycoon even then I had cheat- Sir Rocco Forte ed to get it." sipped cham- Theo Fennell, founder pagne, swiftly of the jewellery brand Beazley 2013 calendar boy strikes a pose As a Team GB Olympic fencer, Husayn Rosowsky is no doubt used to having his photo taken by the press. However The Capitalist learns that the Olympic sportsman has found himself cast as the new star of an unlikely publication. Beazley, British Fencing’s sponsor and specialist Lloyd’s insurer, was shooting in the City last week for its 2013 company calendar. And who better to snap by the Gherkin, casually perusing a copy of City A.M, than sporting man Rosowsky? Olympic GB fencer Husayn Rosowsky

TUESDAY 20 NOVEMBER 2012 cityam.com NEWS 19 TOP CITIES RANKED STARTUP COMPASS: WORLD'S TOP 20 CITIES FOR ENTREPRENEURS Rank City Score Moscow’s entrepreneurs are the youngest in the 1 Silicon Valley 0.95 world with an average age of 27.9, while London’s Waterloo Toronto entrepreneurs are the oldest in Europe with an average of 35.98 2 Tel Aviv 0.63 Vancouver Boston London Moscow 3 Los Angeles 0.61 Berlin New York City 4 Seattle 0.60 Seattle Paris New York 0.59 Chicago Tel Aviv Singapore has the 5 Silicon Valley London is the highest longest hours, 6 Boston 0.58 Los Angeles ranked city in Europe, Bangalore with the average and comes seventh entrepreneur working 7 London 0.57 Singapore 11 hours a day Silicon Valley has left its imprint on all in the world 8 Toronto 0.57 global startup ecosystems. Berlin (4%) Sao Paulo Tel Aviv and Sao Paulo (7%) have the least is the only city Sydney 9 Vancouver 0.49 founders that lived in Silicon Valley, outside of the top Chicago 0.48 Singapore (33%) and Waterloo (35%) Santiago six not in the US 10 have the most entrepreneurs that Melbourne 11 Paris 0.48 were previously based in Silicon Valley 12 Sydney 0.47 13 Sao Paulo 0.41 14 Moscow 0.38 London is world’s seventh-best 15 Berlin 0.36 16 Waterloo 0.35 startup city but no Silicon Valley 17 Singapore 0.33 18 Melbourne 0.31 BY JAMES TITCOMB The inaugural Startup Ecosystem they operate on, there is a significant “There’s a bit of a chicken and egg Report, which surveyed more than “funding gap” for companies trying to situation with how to improve that, Bangalore 0.29 LONDON is the seventh-best city in 50,000 entrepreneurs across the get off the ground, and that London’s but there is more and more success 19 the world for entrepreneurs to set up world, identifies the factors that con- entrepreneurs are more risk-averse around,” he said, pointing to the likes in, but is still some way off its coun- tributed to Silicon Valley’s success, than their US counterparts. of Wonga and Moshi Monsters creator 20 Santiago 0.27 terparts in the US, research out today and assesses those factors in dozens of The report also showed a burgeon- Mind Candy, both of which are hot claims. cities. The research gave Silicon Valley ing startup ecosystem in developing candidates for flotations next year. springing up in London is a pet proj- A report from Telefonica Digital, in an overall score of 0.95, which was cities such as Bangalore and Santiago. The report said that London’s entre- ect of the government, which is tandem with US researchers at the based on factors such as diversity, Ashley Stockwell, who runs the preneurs are on average better edu- working on easing listing rules for Startup Genome, says that while funding and talent. This compared to London branch of Telefonica Digital’s cated and slightly older than those in high-growth companies. London’s startup scene is the largest London’s 0.57. startup accelerator Wayra, told City California, and that they work an London mayor Boris Johnson said and most prosperous in Europe, it It found that while London has A.M. that London’s major problem average of 9.78 hours a day – almost the report “cements London’s posi- still pales in comparison to areas many similarities to Silicon Valley in was the low “level of investment at as much as in Silicon Valley. tion as the high tech start-up capital such as Silicon Valley and Tel Aviv. terms of the types of business models the venture capital level”. The cluster of technology startups of Europe”. Intel boss Otellini takes his leave after 40-year stretch Before After executives. The firm, whose BY HARRY BANKS processors are dominant in of Harley Street INTEL said yesterday that personal computers, has been chief executive Paul Otellini slow to expand into the fast- will retire in May after 40 growing mobile industry, years at the company, as the where Apple’s iPads and Our revolutionary Follicular chipmaker copes with weak iPhones and other popular Unit Extraction (FUE) hair The most PC demand and an industry mobile devices use competing transplant is minimally invasive, shift to mobile computing. technology from Cambridge- with no scalpels, stitches or technically Intel said it would consider based ARM Holdings. scarring, just maximum results. both internal and external “I’ve been privileged to Many men recapture their advanced hair candidates for the position lead one of the world’s confidence and never look and that the “leadership greatest companies,” Otellini back. We are the leading UK transition” will last six said. loss treatment months. Otellini is leaving “It’s time to move on and specialists in FUE, with a highly ahead of Intel’s mandatory transfer Intel’s helm to a new experienced medical team a man can get retiring age for its chief generation of leadership.” Paul Otellini was made chief exec in 2005 achieving natural looking, permanent results. Clinics nationwide IN BRIEF 0800 599 9925 Texan bid for Balfour Beatty business. Adjusted pre-tax profit over Citigroup settles Lehman claim theprivateclinic.co.uk the year to September came in at n Balfour Beatty yesterday said it n Citigroup has agreed to pay $360m Shahid, our £52.6m, up from £44.9m the year Because it’s patient, after had been selected as the best value before, while revenue increased to to the brokerage estate of Lehman your body treatment bidder for a $798m (£502m) for the £260.2m, up 13 per cent year on year. Brothers to resolve a dispute over $1bn Dallas Horseshoe Project in Texas. in collateral that the investment bank The design-build joint venture was forced to post in the days leading involves the upgrade and Tube engineers to strike up to its bankruptcy in 2008. replacement of several bridges in n Engineers are set to down tools on Dallas, to shorten the construction Friday in the latest dispute over Hampson in administration schedule and lower the cost. pensions, pay and benefits for Tube n workers. Staff working for Tube Lines Aero-engineer Hampson Industries on the Northern, Jubilee and yesterday fell into administration. Profit jumps at Diploma Hampson, which struggled with debts n Piccadilly lines will walk out for 24 Technical products supplier hours from 6am on Friday, after and failed to find a buyer earlier this Diploma reported full-year profit of previous industrial action failed to year, has appointed FTI Consulting as 17 per cent, boosted by its seals prompt an agreement. its administrators. TUESDAY 20 NOVEMBER 2012 20 NEWS cityam.com Positive housing market figures give boost to US recovery hopes Financial fears

BY CITY A.M. REPORTER The index was at its highest level US on 29 October, had only a slight since May 2006. impact on home resales. The only AMERICA’S ailing housing market And home resales unexpectedly region where the pace of sales over another could be on the mend, according to rose in October, a separate survey slipped was the north east. two positive surveys released across revealed – a sign that slow But Yun said the storm could the pond yesterday. improvements in the US labour temporarily hold back the pace of US homebuilder sentiment rose market are helping the housing sales in November and December. for a seventh consecutive month in sector recovery gain traction. “Our view is that housing is in a November and hit its highest level The National Association of recovery phase, but one that will crash subside in over six years, according to one Realtors (NAR) said yesterday that be restrained by the availability of widely-regarded survey. existing home sales climbed 2.1 per credit, the pace of improvement in The National Association of cent last month to a seasonally labor market conditions, and the Home Builders’ housing market adjusted annual rate of 4.79m units. overhang from distressed and index, conducted with Wells Fargo, NAR economist Lawrence Yun foreclosed properties,” commented rose to a score of 46 – up from 41 said superstorm Sandy, which Michael Gapen, an economist at the previous month. slammed into the east coast of the Barclays Research.

Sir Mervyn King’s Bank of England conducts the risk perceptions survey twice a year

BY JULIAN HARRIS for any risk,” the report said. Sovereign risk was mentioned by 94 THE CITY’S fears over the prospect of per cent of respondents when asked being hit by another crash have sub- which factors could have the greatest sided, according to a Bank of England impact on the UK financial system if report published yesterday. they were to materialise. UK banks, insurers and investment “Concern focused mainly on Europe funds have bounced back to confi- (mentioned in 79 per cent of the dence levels last seen in the first half responses that indicated a particular of 2011, the survey said. area of sovereign risk), while the US Only one in five respondents consid- and the UK were cited in nine per cent er the probability of a “high-impact and 12 per cent of those responses event” occurring in the short term to respectively,” the report said. be high or very high – down 16 per- “Of the 79 per cent of respondents centage points since the first half of citing Europe, six out of ten highlight- this year. ed concerns over a break up or col- Meanwhile over a third (34 per cent) lapse of the euro area.” of interviewed financial workers con- Following sovereign risk and the sider the chances of such a prospect to threat of an economic downturn, risks be low. from government taxes and regula- Yet people remain wary of a so- tions jumped to an unwelcome third called high-impact event hitting mar- place in the list of risks to the UK’s kets in the medium term, with 41 per financial system. cent saying there is still a high or very And regulation and taxes also came high probability of such a scenario. third in a list of the risks most chal- And government debt levels are the lenging to manage as a firm, being greatest concern. “Sovereign risk is cited by 24 per cent of respondents – now cited by a greater proportion of although this was down eight percent- respondents than previously recorded age points from the previous survey. Statistics office to run rule over Osborne’s QE plan in early 2013 BY CITY A.M. REPORTER Osborne recently announced that the Bank would return to the THE OFFICE for National Statistics Treasury some £35bn of interest (ONS) has said it will not rule paid on these gilts, bought as part before January on whether the of the Bank’s quantitative easing UK’s finances will be affected by a programme, and that future change to the handling of interest interest payments would also go to on the Bank of England’s £375bn the Treasury to pay down debt. of gilt holdings. Some critics said the move will The change could affect whether make it easier for Osborne to meet chancellor George Osborne meets deficit reduction targets that he is politically sensitive deficit in danger of missing. Yet it is reduction targets. But an initial unclear how the payments will be assessment of this in a half-yearly accounted for in official statistics, budget update due on 5 December and whether they will affect the will be made by the government’s measures of public sector net budget watchdog, without a final borrowing and public sector net ruling from the statistics office. debt targeted by the government. TUESDAY 20 NOVEMBER 2012 cityam.com NEWS 21 IN BRIEF Mail.Ru exits Zynga and Groupon four per cent as it posted a 49 per cent Cisco to take over Meraki in a rise in revenues to £10.9m, driven n Russian email-to-social networking partially by expansion into Asian group Mail.Ru has sold all the shares it markets. “FFastFill continues to make owned in US daily deal website good progress despite the challenging $1.2bn cloud computing push Groupon and Facebook game maker market environment in which we Zynga, the company announced operate,” chief executive Keith Todd yesterday. Mail.Ru has been cutting its BY JAMES TITCOMB done remotely over the internet, complex IT solutions.” said. rather than on a company’s servers, Meraki – which was founded in holdings in US internet companies, NETWORKING equipment firm there is a greater flexibility for staff 2006 by postgraduates at the including social networking site Communisis exits Northern Ireland Cisco has bought San Francisco- in terms of where they work from, Massachusetts Institute of Facebook, gradually this year. As of 9 based cloud management company and for businesses in terms of how Technology – has backers including November, it owned 0.16 per cent of n Leeds-based marketing firm Meraki for $1.2bn (£755m), in a deal much storage or computing power Google and a host of venture capital Zynga and 0.84 per cent of Groupon. Communisis said yesterday it expects a that boosts the tech giant’s they need. firms. The firm’s managing director Matthew third straight year of “significant” position in the cloud computing Cisco said the acquisition is Cisco’s shares rose around 1.5 per Hammond said last week Mail.Ru growth, but said it was closing its sector. expected to close by February, and cent yesterday on the news. “This is would consider using proceeds from office in Northern Ireland in a bid to The acquisition, announced early that it is subject to regulatory a very logical move for Cisco,” said the asset sales to pay a special save cash. It expects the restructuring yesterday morning, is one of the approval. “The acquisition of Meraki Zeus Kerravala of tech analysts ZK dividend. to cost £1.5m, and for it to save £1.3m a biggest in the rapidly-expanding enables Cisco to make simple, research, who added that the deal year. The company, which was at the area. Meraki’s network technology secure, cloud-managed networks will enable Cisco to outflank its heart of mobile network EE’s recent 4G allows companies to monitor and available to our global customer competitors in the small-to- FFastFill driven by Asian growth n campaign, said the closure did not manage WiFi networks via a web base of midsized businesses and medium-sized cloud computing Derivatives software provider affect the company’s guidance for the browser rather than via installed enterprises,” said Rob Soderbery, space. FFastFill saw profits rise to £1.4m in the year. “The focus at Communisis computer software. senior vice president of Cisco Cisco, formed in 1984, is looking six months to the end of September, up continues to be the successful pursuit Cloud-based businesses are seen Enterprise Networking Group. to expand into cloud services as it from £100,000 in the same period last of profitable growth,” chief executive as one of the major growth areas in “These companies have the same faces increased competition in its year, the company said yesterday. Andy Blundell said. IT in the next few years. Since IT needs as larger organisations, but networking equipment business FFastFill saw its shares rise by almost cloud computing and storage is without the resources to integrate from the likes of China’s Huawei. Former Brown UK’s WANdisco minister Davies to chair Chime buys out Silicon BY JAMES TITCOMB FORMER business minister and Standard Chartered chief Lord Mervyn Davies landed a new role as chairman of Chime Valley company Communications yesterday. Lord Davies, who served as BY JAMES TITCOMB WANdisco has outlined its inten- Gordon Brown’s minister of state for tion to shift from its current collabo- trade, investment and small SHEFFIELD-BORN software company ration software business, which business from January 2009 until WANdisco yesterday announced it allows clients such as HP and Barclays Brown left Downing Street in 2010, had bought out Silicon Valley data to work together, to Big Data, soft- takes the role after Lord Bell stepped firm AltoStor, as the recently-listed ware which enables companies to down to run the Bell Pottinger UK outfit makes an aggressive move handle vast amounts of information. business Chime disposed of in May. into the lucrative and fast-growing The market is expected to grow His appointment came as the PR “Big Data” market. exponentially in the coming years, and sports marketing group said its “It’s a real coup for the business,” with spending increasing from $5bn Lord Davies has joined Chime Communications as its new chairman growth had continued in the second chief executive David Richards told to $50bn between 2012 and 2017. half of the year so far, and that it City A.M., revealing that WANdisco Panmure Gordon analysts called was looking to make more beat “a much bigger, established yesterday’s acquisition “a watershed PROFILE: LORD MERVYN DAVIES purchases following October’s £7m Silicon Valley company that wanted deal”, upping WANdisco’s price tar- deal for pH Associates, a [AltoStor]” to the deal. get from 460p to 537p. The company’s LORD Mervyn Davies had a short tenure as a Before taking his life peerage in 2009, Lord pharmaceutical data provider. The $5.1m (£3.2m) transaction is shares rose 4.3 per cent yesterday. minister of state, but since Gordon Brown Davies had a decorated career in financial “There are a range of acquisition made up mostly in WANdisco shares, WANdisco has promised to spend was voted out of Downing Street, he has services, which saw him awarded a CBE in opportunities we continue to giving AltoStor’s owners 2.5 per cent more money on acquisitions to fur- had plenty to do. Baron Davies of Abersoch, 2002. Having joined Citibank in 1983, he review,” the company said, adding of the Aim-listed company. ther its development in the Big Data to give the former chief executive of worked for the bank for 10 years until land- that trading was up on the same Richards pointed to the growth market. Its June flotation raised Standard Chartered his full title, is also a ing a position at Standard Chartered. In 1997 period last year, and in line with opportunities that the deal offers around £16m. senior non-executive director at internation- he joined StanChart’s board and was made expectations. WANdisco, whose shares have more al drinks giant Diageo, a partner at private- chief executive in 2001, a position he London-listed Chime owns many than doubled in value since June’s WANdisco PLC equity firm Corsair Capital and a retained for five years before stepping down companies dotted around the world, initial public offering. 460 p non-executive chairman at US asset man- to be replaced by current boss Peter Sands, and has outlined its plans to expand 456.25 agement firm Pinebridge Investments. and becoming chairman. “We are buying intellectual proper- 19 Nov it fast-growing markets such as ty, we are not buying revenue,” he 455 As minister of state under Lord Mandelson, Outside of the business world, the 60-year- Brazil and China. said. “This is a company from the 450 Lord Davies oversaw a government review old Welshman is a passionate supporter of Lord Davies said yesterday: “There high street of Silicon Valley and its into the number of women on company the Arts, having served on boards for the are many international the most exciting acquisition I’ve 445 boards in February 2011, which recommend- Roundhouse theatre and the Royal opportunities and we intend to made.” AltoStor’s technology, 440 ed that a quota system was not an effective Academy of Arts and a football fan, and he seize them. Chime is a very Hadoop, is a data-driven software way to encourage equality, but instead that was on the board of Tottenham Hotspur interesting company with strong 435 platform used by many of the US’s FTSE 350 companies should set their own until taking his position in Gordon Brown’s growth potential. I am looking big technology companies such as targets to fulfil. government. forward to helping them achieve Yahoo, Facebook and Amazon. 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov their goals.” London tech bank sets up in California BY JAMES TITCOMB go,” Robson, who also set up a branch in the next year in Europe. Robson said that Berlin earlier this year, told City A.M. the startup scene in London, which has A BRITISH technology investment bank is “It’s unusual that we are expanding been criticised as being less friendly than today announcing plans to set up in when other investment banks are shrinking various cultures in the US, is “on the right California in a bid to benefit from the but we feel pretty confident that track” and that “things are really fast-growing firms in Silicon Valley. technology is going to continue to grow in happening now”. In a rare UK export to Silicon Valley, the long term.” Torch Partners has hired Silicon Valley London-based Torch Partners, which Torch Partners, which was founded in veteran Sanu Desai, who was previously JP focuses on high-growth companies in 2003, claims to have created more than Morgan’s head of internet and digital the tech, media and telecoms sectors, is $4bn (£2.5bn) in value for start ups media, as managing director. set to set up in San Francisco in the including data centre firm Telecity, food At JP Morgan, Desai advised many of the coming months, its chief executive ordering service JustEat and cloud storage web’s pioneering firms in the 1990s, Rupert Robson will announce today. company DropBox. The bank is anticipating including Amazon and the web browser “Naturally Silicon Valley is the place to a rise in tech IPO and M&A opportunities in company Netscape. TUESDAY 20 NOVEMBER 2012 22 NEWS cityam.com Revenue up at Ruspetro thanks Taylor wins a bigger role at Barclays’ investment bank BY DAVID HELLIER to an increase in oil production changes will take effect next year. BARCLAYS announced yesterday that The appointment comes after a BY CATHY ADAMS added that it was on track to months to June, as the cost of sales Richard Taylor will be its new head of strong showing for Barclays’ invest- achieve a full-year target of 10,400 and administrative expenses investment banking in Europe, ment bank in Europe, in spite of the SIBERIAN-focused oil and gas barrels a day. dragged it down. Middle East & Africa (EMEA), filling a surprising exit of the group’s chief explorer Ruspetro yesterday Higher production of condensate Shares closed up 1.76 per cent gap left by Tom King’s move to take executive Bob Diamond over the reported a 22 per cent jump in – a by-product of drilling – also yesterday at 89.55p. on a global role in a shake-up last Libor-rigging scandal earlier this year. revenue, thanks to a ramp-up of flattered increased revenues. month. Many rivals had expected Barclays production at its main asset. Net debt stood at $310.8m over RusPetro PLC Taylor, formerly at Bank of America to lose clients in investment banking, Revenue for the exploration and the three months to November, 100 p 89.55 Merrill Lynch, is currently head of the an area bolstered by Diamond’s con- development group increased to with $64.7m of cash, reflecting 98 19 Nov investment banking division for UK tinued support. But the group’s tradi- $17.7m (£11.1m) in the third Ruspetro’s listing on the London and Ireland, and will retain those tional strength in debt capital 96 quarter of 2012, compared to Stock Exchange in January, it said. responsibilities. markets is currently being matched $14.6m in the previous quarter, Chief executive Don Wolcott 94 Matthew Ponsonby, currently co- by strong showing in UK M&A where buoyed by an increase in oil hailed the performance over the 92 head of mergers & acquisitions (M&A) it lies near the top of the league production at its operations in first half, adding that Ruspetro 90 advisory, will become chief operating tables. Western Siberia. would focus on accelerating drilling 88 officer for investment banking in The bank has also won a number of Oil output over the three months for more condensate. 86 EMEA and Mark Warham will corporate broking mandates since to 18 November rose to 7,853 In August, Ruspetro recorded a become sole head of M&A, EMEA, the July, including TUI Travel, Rentokil, barrels of oil per day. Ruspetro $26.4m pre-tax loss for the six 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov bank told staff in a memo. The Telecity and Severn Trent. AGA GETS BOOST FROM BRITISH BAKING BOOM IN BRIEF Krispy Kreme raises outlook Majestic bucks n US-listed doughnut chain Krispy Kreme last night raised its profit outlook after a 6.9 per cent rise in quarterly earnings. The firm has expanded its offering to include coffee and other snacks in recent years to bad weather to propel growth in spite of a growing market for healthy snacks. Krispy Kreme posted a quarterly profit of $5m, up from $4.7m a year ago, on revenues that rose 8.5 per cent to $107.1m – post profit rise both ahead of analyst expectations. Aggreko wins Ivory Coast deal BY KASMIRA JEFFORD Online sales now represent 9.8 per n Temporary power supplier Aggreko cent of UK retail sales. has signed a contract worth around MAJESTIC Wine yesterday shrugged The retailer also opened nine new $75m (£47m) to supply 100MW of off a summer of bad weather and stores in period and two in gas-fuelled power to the Ivory Coast, economic uncertainty, as it posted a September, bringing the total num- it said yesterday. The two-year rise in first half revenue and profits. ber of stores to 189. contract, awarded by the Société des Chief executive Steve Lewis said the The group is also embarking on a Energies de Côte d'Ivoire, will wash-out summer prompted organis- new advertising campaign after reinforce power supply in the African ers of fundraisers and sporting investing around £900m in the first country before the construction of events to cancel or return wines half, with little effect. Lewis said the while consumers took a raincheck result of two campaigns at Christmas permanent power capacity. The on barbecues. last year and the Jubilee “were prom- contract follows on from the 100MW “The test is always how many barbe- ising but not compelling” and said that Aggreko installed two years ago. cues [my family] had and that was this year’s Christmas advert will be two,” Lewis said, adding that the bad supported by promotions in-store. Revenue jumps at Intertek weather also led to red wine out- n Testing company Intertek yesterday selling white wine, typically more Majestic Wine PLC 476.00 posted a 20.1 per cent jump in revenue popular during the summer period. 480 p 19 Nov for the July to November quarter, The wine specialist reported a 3.9 478 buoyed by strong growth from the per cent rise in pre-tax profits to 476 Americas, Asia and the Middle East. £9.2m in the six months to 1 474 Europe still proved a hard market, October, with like for like sales in UK 472 with growth “below the group retail stores up 0.6 per cent. 470 average”, it said. The adjusted Online sales jumped by 14 per cent 468 AGA Rangemaster chief executive William McGrath said yesterday he felt an “air of optimism operating profit margin for the group, on last year, which Lewis attributed 466 for 2013” after the iconic cast iron cooker maker reported “encouraging” trends in its sales. which acquired NDT Services for £17m to the group’s decision to drop the 464 Shares soared more than 10 per cent after McGrath said sales had continued to grow at the minimum online order from 12 bot- in September, is expected to be four per cent rate seen at the half-year, with publications such as Great British Bake Off star broadly stable on the prior year. tles to six in June. 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov Mary Berry’s Aga Cookbook helping to drive demand for the classic cookers. Areva plans for Charity wants more prominence Total sells off Nigeria Scotland plant for givers in the UK honours list

BY CITY A.M. REPORTER BY HARRY BANKS Rudd, chairman of Legacy10, stake to Chinese firm said: “Despite the extremely AREVA plans to locate its third A CAMPAIGNING charity yesterday helpful Inheritance Tax change BY CITY A.M. REPORTER September it planned to sell assets European factory for producing called for an urgent overhaul of introduced by the government in worth between $15bn and $20bn in offshore wind turbines in eastern the honours system to increase April 2012, the percentage of OIL major Total yesterday agreed to the period up to 2014 as part of a Scotland, the French nuclear firm recognition of people who give people in the UK who leave a gift to sell a 20 per cent stake in a Nigerian bolder approach to managing its announced yesterday, in a boost money and time to good causes. charity in their will is still three offshore oil field to China’s Sinopec business, which has seen it buy and for a UK industry hit recently by Legacy10, which was founded by times less than their counterparts for £1.6bn. sell assets more frequently. other firms putting energy plans the financial public relations in the United States. The deal will help the French oil Nigeria is Africa’s largest crude on hold. executive Roland Rudd, is calling “We call on government to send group fund its ambitious oil exporter and oil companies Areva signed a memorandum of for an end to the awarding of a clear signal that legacies can exploration plans while giving operating there have long had to understanding with Scottish honours solely for “services to provide long-term, sustainable China an additional foothold in deal with attacks on their pipelines Enterprise, a public body of the business”, and instead asks that all sources of income for charities and overseas fuel production. and staff, with the country’s worst Scottish government, to build a awards in this category only be the arts. One way to do this is to Total has penned a deal to sell floods in 50 years seriously factory producing five-megawatt granted if there is also firm end the award of honours solely the stake in the OML 138 block, affecting their output over recent (MW) turbines by 2015 or 2016. evidence of charitable or for services for business, and which currently produces 130,000 weeks. Areva's Scottish plant will cater philanthropic service too. instead reward charitable and barrels per day of oil equivalent Total’s chief executive, Christophe for offshore wind projects in The recommendation is one of philanthropic behaviour.” and contains the Usan field, which de Margerie, said earlier this month Britain, which plans to build ten suggestions made in a report, The culture secretary is due to started production in February. the group did not intend to around 18 gigawatts of offshore which was requested by culture respond to the report by the end of The French group said in disengage from Nigeria altogether. wind capacity by 2020. secretary Maria Miller. January. TUESDAY 20 NOVEMBER 2012 cityam.com 23

YOUR ONE-STOP SHOP FOR JOB MOVES, CITYDASHBOARD BROKER VIEWS AND MARKET REPORTS in association with CITY MOVES WHO’S SWITCHING JOBS Edited by Tom Welsh NEW YORK Smith & Nephew appointments. Leigh Fisher joins as head of advisory from Brock to its London-based fund sales team. She joins from Neptune Investment Management. She has also held roles BNY Mellon Wealth Management in Boston, where she was REPORT Julie Brown has been appointed at Schroders. Darren Pilbeam joins as head of strategic responsible for advising US-based high net worth clients. chief financial officer at the alliances from Investec. He has also worked at Axa in association with medical technology business. She Investment Managers. joins from AstraZeneca, where Norton Rose she was vice president for group Huw Evans has been appointed partner in the law firm’s finance and interim chief financial Marsh litigation and dispute resolution practice. He joins from Wall St up on officer. Brown was at AstraZeneca David Moylan has been appointed to lead the insurer’s Allen & Overy, where he focused on patent litigation and for 25 years, and previously newly-created global surety practice. He has been at Marsh intellectual property rights litigation. qualified as a chartered for over 25 years, most recently as chairman of the surety housing and accountant at KPMG. practice in its international division. Jones Day The law firm has appointed Claudia Leyendecker to lead its Natixis Global Asset Management Brown Advisory Dusseldorf banking and finance office. She has been an high earnings The asset management firm has announced two senior The investment management firm has appointed Keryn equity partner at Luther since 2008. S stocks bounced higher for a +44 (0)20 7092 0053 second consecutive session SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT yesterday as investors were morganmckinley.com Uencouraged by the early atmosphere surrounding talks to To appear in CITYMOVES please email your career updates and pictures to [email protected] tackle the nation’s fiscal crunch. The Dow Jones industrial average gained 207.65 points, or 1.65 per cent, at 12,795.96. The Standard & Poor’s 500 Index was up 27.01 points, or 1.99 per LONDON REPORT in association with BESTof theBROKERS cent, at 1,386.89. The Nasdaq Composite Index was up 62.94 points, Aveva Group PLC or 2.21 per cent, at 2,916.07. AVEVA Stronger-than-expected earnings 2,020 p 1,968.00 Panmure has cut its UK shares have year’s biggest one 2,010 from Lowe’s and Tyson Foods, as well 19 Nov target price on the as encouraging housing data, also con- 2,000 software group to 1838p 1,990 tributed to the market’s advance. from 1948p and kept its day rise on hopes of US fiscal plan 1,980 Tyson and Lowe’s were the top two per- 1,970 “hold” rating, after last centage gainers on the S&P 500. K shares matched their biggest one “We definitely got oversold. It remains to 1,960 week’s interim results The S&P 500 is up more than two per day rise of the year yesterday, be seen as to whether or not we will hold a 1,950 caused the broker to trim cent in the last two sessions as rhetoric recovering some of last week’s steep rally. It’s a very good rally, two per cent, its expectations slightly. from legislators over the weekend sug- 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov Ufalls, as optimism that US and we should get another push again gests a deal could be reached to stave lawmakers will forge a fiscal compromise tomorrow, as long as Wall Street holds up.” off the looming “fiscal cliff”, a series of encouraged traders to buy at the lower Yesterday’s rise came after after a 1.3 per Blinkx PLC BLINKX tax and spending changes that will prices. cent drop on Friday took last week’s falls to 82 p 79.00 After last week’s strong begin to take effect in the new year. The FTSE 100 index was up 132.07 points, 2.8 per cent in total. 80 19 Nov interim results from the The two sides are still far apart in nego- or 2.4 per cent, at 5,767.66 by the close. The rebound was broad-based, with every 78 video streaming firm, tiations, however. Leading US lawmakers expressed confi- sector contributing to the index’s rise, 76 Canaccord Genuity has a The benchmark S&P index had fallen dence on Sunday that a deal would be although the most economically sensitive 74 “buy” rating and target 5.3 per cent between Election Day and reached to avert the $600bn “fiscal cliff” of stocks such as commodities and banks , led 72 price of 110p, and has Friday’s rebound, as investors took the tax rises and spending cuts which could gains. Financials, which include banks, 70 lifted revenue forecasts by opportunity to sell stocks – including tip the world’s biggest economy into reces- insurers and brokerages, added nearly 40 one per cent for the year. some of the year’s best performers – sion. points to the index. 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov just in case Washington can not come This followed a late rally on Wall Street to an agreement and taxes on divi- on Friday after leaders of the US Senate FTSE Eurasian Natural Resources Corporation PLC dends and capital gains rise in 2013. and House said they would find common 5,800 ENRC “Everyone is quietly breathing a sigh 290 p ground over their policy differences. 5,775 5,737.66 272.10 RBC has upgraded the of relief, because frankly, we are no 285 “There was obviously a great deal of 5,750 19 Nov 19 Nov mining giant to longer looking over the edge of a cliff, worry over what was perceived to be a pro- 5,725 280 “outperform” from we are looking at an opportunity to longed debate (over the fiscal cliff), but the 5,700 275 “underperform” on the step back and recalibrate,” said Peter statements from [US President] Obama and 5,675 270 back of recent production Kenny of Knight Capital. [Treasury Secretary] Geithner on Friday 5,650 265 forecasts, and lowered its However, the rebound could be a helped the markets out,” said Zeg 5,625 260 target price to £3.25 due short-lived reprieve from the sharp Choudhry, head of quities trading at to a high risk profile. declines and market volatility could Northland Capital Partners. 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov 13 Nov 14 Nov 15 Nov 16 Nov 19 Nov still rise, depending on negotiations. TUESDAY 20 NOVEMBER 2012 24 THEFORUM cityam.com/forum Investors should expect a perfect storm of global political instability IOLENCE in Israel and Gaza ment in defence. History suggests economies, is now very real. In recent cern. Although US treasuries and UK may seem to be a solely that, at times like this, isolation or years, virtually all the countries our gilts have been bolstered as safe haven political (or geopolitical) violent expansion tends to follow fund monitors have been downgrad- investments, emergency monetary issue. But politics has closely. ed, with notable exceptions including measures taken by central banks – in implications for all Thirdly, sovereign debt levels in the Canada, Sweden and Australia. the form of quantitative easing – are Vinvestments, and particularly Eurozone are driving social tensions. And these exceptional economies fanning inflation fears. sovereign debt. Governments drive The situation has become untenable, are fairly unusual. Their banks were Faced with this new era of political policy and policy drives the bond NEIL WILLIAMS and there appears to be no solution in more robust going into the 2008 cri- risk, what should investors do? markets. sight. Spain is a prime example of the sis, and thus required less support. Factoring in political risks has always Instability used to be more of an powder keg the Eurozone is fast been a fundamental part of the issue for emerging markets. But we unemployment and slow economic becoming. If you were worried about investment process. But we are now are now entering a new age of politi- growth are breeding discontent, and Greek debt, you should be doubly Rising tensions in largely unchartered waters with cal risk. Rising tensions between political extremism can thrive in worried about Spain today. If its ‘ potential instability unlikely to disap- nations (and within them) signal a such circumstances. The outcome of politicians don’t implement reform, both between and pear. struggle ahead for governments, and each of these upcoming elections is a downgrades are inevitable, and its And the situation could get worse, a rocky road for investors. potential force for instability. economy’s struggle will intensify. Yet within nations suggest with Middle East tensions again push- Consider the evidence. Firstly, the Secondly, tensions both between if the Spanish government does insti- ing up the price of oil, and escalating political direction of many countries and within nations are rising across tute deeper austerity, greater social a rocky road ahead regulatory pressures potentially is in a state of flux. We’ve just seen the world. In Europe, structural flaws unrest could be inevitable. High encumbering the liquidity of bond elections in the US and leadership and competing national interests are youth unemployment – currently 54 markets. change in China. Australia, Japan, leading to strains between countries. per cent in Spain – is one of the two Financial markets are no longer Italy and Germany are holding con- At the same time, politicians are typical ingredients for civil war (the This solidified their fiscal positions, driven by economics alone and mar- tests over the next 12 months. While engaging in interventionism in the other being bad harvests). While I am offering relatively lower default risk ket participants can no longer rely on the electoral landscape is always corporate and financial worlds. And not suggesting war will break out, it than others. These combine to leave traditional investment theory and important, there are now heightened the US faces its own looming prob- does highlight the near impossible them with a more stable political sit- doctrine to make a profit. In this era, ramifications. lems. The fiscal cliff is approaching situation facing Spain’s politicians. uation. Their circumstances are we must try to adapt accordingly. Conditions in the developed world fast, and the country is reaching the Fourth comes the specific risk of unfortunately rare. Neil Williams is chief economist for glob- are unlike anything seen for two – critical day when its spending on default. This threat, springing from Ultimately, even countries like the al government and inflation bonds at perhaps three – generations. High debt servicing will outstrip invest- the political situation in many G12 US and the UK give us reason for con- Hermes Fund Managers.

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. The poor are growing richer – and it’s nothing to do with redistribution

T’S fashionable to suggest that have got richer as well. cent five years ago. In his recent book competitive, rent-seeking activities economic reform under Margaret Second, though inequality has Changing Fortunes, Stephen Jenkins are to blame, we should stamp them Thatcher exposed us to a form of FRONTLINE risen across the period, it has of the London School of Economics out. capitalism where “the rich have recently been falling. The earnings found just 17 per cent of households Reams of analysis suggest, got richer and the poor have got ratio of the top 1 per cent of earners remained in the same tenth of the however, that it’s global competition poorer”.I We’re told this has led to ECONOMICS against the bottom 1 per cent of income distribution in 2006 and new technologies – the engines increasing inequality, which has earners increased from 8.1 in 1986 to compared to their original 1991 of future growth – which are leading damaged our economic and social RYAN BOURNE 10.3 today. But this measure peaked position, suggesting fairly significant to large rewards for the highly skilled fabric and that only redistributive in 1998 above 12, and has been on a mobility over time. With 40 per cent or talented. Correcting for this policies – in the form of punitive earnings for all, with the average full downward path ever since. This of households remaining in the same through the high-tax, redistributive taxes on the wealthy and hand-outs time employee seeing a rise of 62 per suggests that today’s concern about tenth between two consecutive years, policies that equality campaigners to the poor – can rectify the situation. cent between 1986 and 2011. The very inequality is largely a reflection of Britain was more income mobile advocate would be self-defeating. But there are problems with this poorest 1 per cent saw real earnings current, tough economic conditions. during the 1990s than Germany (42 These policies retard growth and analysis. First, the “rich richer, poor increase by 70 per cent, the bottom More significantly, static per cent) and Canada (45-50 per cent). diminish incomes for all without poorer” claim is not true. Last week, 10 per cent by 47 per cent and the top inequality measures do not account Do rising incomes, higher but addressing the real challenge: to the Office for National Statistics 1 per cent by 117 per cent. Similar for people moving up or down the falling inequality and relatively high produce a highly-skilled workforce, published evidence of earnings results are found in household-level relative income scale over time income mobility mean we shouldn’t incentivised to undertake innovative growth across the income spectrum analysis, looking specifically at (evidence of economic opportunity). worry about inequality? Not and entrepreneurial activities. over the past 25 years. There have disposable income. So while the rich Someone in the top 1 per cent today necessarily. But the underlying Ryan Bourne is head of economic been significant increases in real have definitely got richer, the poor may not have been in the top 1 per causes must be identified. If anti- research at the Centre for Policy Studies. A.M. MORNING UPDATE TUESDAY 20 NOVEMBER 2012 25 The Forum is open for you to take part. Got a sharp comment on one of today’s columns? Do you have another subject you want to share your opinion on? We want to hear your views. Email [email protected] or comment at cityam.com/forum RAPIDresponses How shareholders Easing the burden TOP TWEETS If we’re to have a “war time” mentaility to the shaped the Xstrata [Re: We must ditch unfair loopholes – and Think of the extra employment. Think of economic crisis then perhaps tax loopholes then cut tax overall, yesterday] how much less political time would be should be closed to help with the effort. You have to ask what purpose corporation spent tilting at windmills. @stuartctaylor tax serves. Companies are mere constructs Sir James Pickthorn, Pickthorn Chartered for the purposes of providing services to Surveyors I can’t work out which side of EU Ed Miliband Glencore merger the market. By taxing them, the is on. He warns that we are “sleepwalking into [Re: Business groups hail coalition plans to government is penalising a justifiable and an exit”, and then calls himself eurosceptic. HAREHOLDERS in Xstrata, the desirable activity. In the end, the consumer slash regulation burden, yesterday] @ranty_man mining company, vote today pays because the tax is a cost of The announcement that the coalition’s on whether to approve its production. It costs more than just the cost “one-in, one-out” regulation system is due Anyone have any idea at all where the govern- mega-merger with Glencore, of the tax because clever brains – which to be upgraded to a “one-in, two-out” sys- ment stands on airports, EU, energy policy, the commodities group. If are better used elsewhere – are applied to tem is certainly a welcome step for UK small environment? Me neither. Spassed, the deal will create a £50bn saving the tax rather than useful and medium sized businesses. Concern @ZacGoldsmith mining and global commodities production. It also diverts production. Let about red tape is widespread among UK marketing giant. But reaching this ALEXANDER KEEPIN us remove it altogether. Think of all the UK- small businesses. It is important the envi- Businesses tell me that huge policy uncertain- point hasn’t been easy. At nearly originating companies which would return ronment for growth is just as strong as the ty is holding them back from investing in the every step of over ten months of would “enable shareholders to vote in to the UK. Think of all the foreign measures used to stimulate such action. UK. negotiations, shareholders have line with their convictions in respect companies that would relocate to the UK. Richard Coleman, Zurich Insurance @ChukaUmunna successfully made their influence of the retention arrangements, with- felt. out influencing their voting inten- Concern has centred on two key tion on the new scheme”. Secondly, issues. Firstly, Xstrata shareholders the package was softened, with some argued that the exchange ratio elements subject to performance con- As the conflict in Israel and Gaza continues, offered by Glencore did not offer ditions and paid in shares. them adequate value. Secondly, a And decoupling the votes could management incentive arrangement have interesting consequences. Qatar – designed to retain members of the Holdings has said that it will not vote can the situation be effectively contained? Xstrata management team – was on the retention resolution as it is attacked as unnecessary and exces- “conscious of the sensitivities con- sive. Disagreement on these points cerning governance issues in the UK forced an October vote on the deal to and does not feel it appropriate to be postponed. influence the outcome either way”. This pressure made a substantial Given this decision, Glencore and difference. Since October, Glencore Qatar, which together hold about 46 improved the proposed exchange per cent of Xstrata, cannot or have ratio from 2.8 to 3.05 Glencore shares elected not to vote on these arrange- YES NO in exchange for each Xstrata share ments. (25.5 per cent higher than the average Xstrata’s smaller shareholders will ratio calculated between 3 and 6 therefore have a strong influence on Adam Hug Richard Kemp September 2012). This increase led the outcome. With investors like Qatar Holdings (Xstrata’s largest inde- Standard Life questioning the incen- This crisis can be contained but it will take more than pressuring Israel’s actions are as much psychological as physical. As well as pendent shareholder) to move in sup- tives, and shareholder advisory firms Hamas to come to ceasefire, or pressing Israel for restraint and an striking at Hamas’s leadership and missile arsenal, the air war and port of the deal. It has now publicly like ISS recommending against the end to its current rules of engagement. The international community the threat of a ground offensive aim to pressure Hamas to cease stated that it will vote in favour of the resolution, it is unclear whether must set out a plan to securely relieve the blockade of Gaza, allowing its rocket attacks. Israeli pressure is also aimed at Egypt, which offer. Xstrata and Glencore will get the consistent movement across the Rafah border. This can only take has the ability to influence Hamas. Hamas also demands that However, in a throwback to this approval they are seeking. place with Egyptian agreement and security measures to assist Cairo Israel lift its blockade on Gaza and ceases targeted killings of its year’s shareholder spring, it is the With the merger looking like it will and placate Jerusalem. Measures would include: a revised EU Border leadership. Israel will agree to neither, and will continue its management incentive arrange- be approved, but with the manage- Assistance Mission to upgrade security systems for handling goods military action until its goals are achieved. However, military ments which have fallen under the ment incentives hanging in the bal- traffic; bolstering Cairo’s efforts to close tunnels used for moving action will not achieve a permanent cessation of hostilities. Only most intense scrutiny. They will form ance, the merged entity will be born weapons and smuggled goods; and regaining control of the Sinai. political resolve – which is nowhere in sight – could achieve that. the centre of attention at today’s vote, under heavy shareholder scrutiny. It Similarly, reviving Palestinian reconciliation efforts could lead to The best that Israel can hope for is that this campaign buys a few and it is here that Xstrata sharehold- remains to be seen, however, whether more Palestinian Authority involvement in the management of Gaza, years of relative calm before Hamas is emboldened to strike again ers could again show their influence. the management incentives will be This could help tackle rocket fire from smaller militant groups, which at its hated enemy. Firstly, Xstrata decoupled the merger necessary for the short-term success Hamas is unwilling to proactively restrict. Richard Kemp is a former British Army commander and senior vote from the vote to approve the of the enlarged group. Alexander Keepin is partner and co-head Adam Hug is policy director at the Foreign Policy Centre. associate fellow at the Royal United Services Institute. retention scheme. According to Sir John Bond, chairman of Xstrata, this of mining at Berwin Leighton Paisner.

4th Floor, 33 Queen Street, Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor Marc Sidwell Distribution helpline London, EC4R 1BR News Editor Elizabeth Fournier | Business Features Editor Tom Welsh | Lifestyle Editor Steve Dinneen | Sports Editor Frank Dalleres If you have any comments about the Tel: 020 3201 8900 distribution of City A.M. Fax: 020 7248 2711 Creative Director Gavin Billenness please ring 0203 201 8955, 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 Iliffe Print Cambridge, Winship Road, Milton, Cambridge CB24 6PP TUESDAY 20 NOVEMBER 2012 26 cityam.com WEALTHMANAGEMENTTRADING Potential problems in NEAL GILBERT SENIOR MARKET STRATEGIST, GFT the oil pipeline remain HOW TO MANAGE YOUR RISK But there could be some upside ahead, BY USING A PAIRS STRATEGY writes Craig Drake ARKETS are fraught with FTSE (a 5 per cent gain) and 2,425p- uncertainty: the fiscal cliff, 2,437p for Retailer Plc (a 10 per cent OT long ago, the peak oil conflict in the Middle East, the gain), making a profit of £1,100 on consensus painted a picture M Eurozone crisis, and slowing Retailer Plc (2,425p-2,437p x £5 = of a future of growth in China are just some of the £1,100) and a loss of £572 on the index N uncontrollably spiking oil problems that could potentially derail (5,653-5,939 x £2 = £572). Our total prices. The rapid rise of developing equity markets. Therefore, traders must profit is £528. market demand would lead to a use risk management techniques to squeeze on oil markets and mitigate their risk exposure. SCENARIO TWO surging oil prices. But as oil and But if investors suddenly sought In the second scenario, investors move gas producers can attest, many of safety by moving their money out of their money out of equities and into these forecasts have come to equities and into cash, for example, cash (the flight to safety). The FTSE nothing – a loose short to the resulting sell-off may have a sharp 100 drops 10 per cent to 5,088-5,089, medium-term supply balance has impact – regardless of the stock’s (or while Retailer Plc trades 5 per cent put the brakes on any dramatic sector’s) ability to outperform the lower at 2,095p-2,107p. price rise. market. This begs the question: what We close our positions and make a Rather than floating on a cush- is the best way to protect yourself? £572 profit on the FTSE 100 (5,939- ion of huge fuel price increases, oil To illustrate one risk management 5,653 x £2), and a £610 loss on Retailer producers are instead facing a chal- Oil producers are not just driven by energy prices technique, we could use the example Plc (2,217p-2,095p x £5). Our total loss lenging future. And rather than of a fictional retailer – Retailer Plc. is £38. global economic growth of 4 per So is BP a buy? After the battering that have beset BP, Royal Dutch The company’s stock has performed Although our strategy has cent or more, oil-demand driving the stock took following the initial Shell has nevertheless had a chop- well recently. It has a diversified, minimised our potential gain, if we GDP is now closer to 3 per cent. disaster, investors certainly py year to date. When it made its global customer base, and the absence had not made this “relative out- But if stock-picking oil and gas thought so, piling in to buy on the third quarter announcement at of high street shops keeps its costs performance” bet and hedged our producers was as simple as looking dip. And following the sale of half the beginning of the month, Shell low. The firm is expected to put in a position in both scenarios, we would at oil and gas demand, life would of its Russian joint venture to reported a 2 per cent rise in net solid performance over Christmas. have been left with a significant loss. be very easy. As the two big recent Rosneft, BP looks like the cheapest profits to $7.14bn, but said that it However, if there is a concerted move Given the uncertainty that movers – BP and Shell – show, oil of the so-called supermajors – the faced volatile energy markets. Total out of equities, how can you protect currently exists in the market, this firms have more complex con- six non-state owned oil producers. production fell by 1 per cent over your position in Retailer Plc? sophisticated approach is a useful tool cerns. A possible share buyback in the the quarter. But stripping out Consider two scenarios. In each for managing your trading risk pipeline also gives hopes of a boost Nigerian security problems and case, Retailer Plc outperforms the properly. However, it should not be BP to share prices. But anybody look- asset sales, the supermajor’s under- market by 5 per cent. seen as a substitute for placing stop- It’s difficult to look at BP without ing to treat BP as a buy has to be lying production was up 1 per cent. losses and limit orders, which are also talking about its $4.5bn (£2.8bn) prepared for the effects of litiga- “Shell has been optimistic about its SCENARIO ONE vital risk management tools. settlement with the US tion, which could stretch for years profits, but the share price shows Retailer Plc’s stock rises by 10 per cent, The pairs-trading technique can Department of Justice and the into the future. There has been that investors remain rather cau- and the index (the FTSE-100) rises by easily be applied to a single company Securities and Exchange chatter of a potential takeover, but tious,” says Christopher only 5 per cent. The price you are and its parent sector, or even a Commission (SEC) over the 2010 the anti-monopoly regulatory hur- Beauchamp, analyst at IG. “I think quoted for Retailer Plc is 2,205p-2,217p company and one of its peers within Deepwater Horizon Gulf of Mexico dles would likely rule this out. BP might be the more promising and the price of the FTSE 100 is 5,653- the sector – for example, Ryanair and oil spill. The settlement was larger for the moment, if only because 5,654. To offset our risk exposure we IAG (the consolidated group of British than many had expected – and SHELL expectations got so bad that should trade both the index and Airways and Iberia). dwarfs the $1.3bn fine handed Though it has avoided the troubles almost any news will be better.” Retailer Plc. For this strategy to work effectively, down to Pfizer in 2009. But the sil- If we expect the firm to outperform you must ensure that your absolute ver lining is that this clarification FTSE 35 Oil & Gas Producers the market, we could go long on exposure – the price of the stock on the level of criminal penalties BP Retailer Plc at £5 per point, and short multiplied by the size of the bet – is leaves both BP and its investors 2,450 540 p the FTSE 100 at £2 per point. We close broadly in proportion on both sides of with a quantifiable problem to sur- our positions at 5,938-5,939 for the the trade. mount. “The only thing that 2,350 500 investors have to contend with 2,250 IAG versus Ryanair, 1 year performance relates to Macondo [the site of the 460 spill] and so sadly there still 2,150 remains a degree of uncertainty 420 40 % Performance surrounding the stock,” says Angus 2,050 380 RYANAIR Campbell, head of market analysis 2,000 for Capital Spreads. 2012 Jan Mar May Jul Sep Nov 30 Feb Mar Apr May Jun Jul Aug Sep Oct Nov

20 THE TIPSTER TAKING CANDY FROM A BABY that it was performing in line with want a taste of good news to help 10 RADING shares in Mothercare has been analysts’ expectations. Shares have push the company out of this range. child’s play over the last 12 gained 20 per cent over the last year, IG quotes a price of 691p-693p for IAG but they are down from highs in Compass Group. 0 months, as they have surged over 120 per cent. Chief August, and are currently languishing The diversified products of executiveT Simon Calver, who was near four month lows. With pressure Johnson Matthey have Source: Reuters appointed in April, has implemented on its margins set to continue, traders contributed to a positive 2012 for the Nov 2011 Jan 2012 Mar May Jul Sep Nov a successful turnaround strategy, may punish any deterioration in the chemicals and metals specialist. appeasing the concerns of worried outlook. CMC Markets quotes a price Although shares are up in 2012, they investors. The retailer delivers its of 2,622.91p-2,628.08p for SABMiller. have fallen sharply since the highs interim statement on Thursday, and Catering firm Compass Group is seen in September. Tomorrow’s facebook.com/gftmarketsuk twitter.com/gftuk traders will want to see whether the expected to dish up tasty news when interim numbers are eagerly current momentum can continue. it serves its final results this week. It anticipated to see whether the Spreadex quotes a price of 292.2p- has been a good year, with shares up company can regain some of its www.gftuk.com 298.6p for Mothercare. by over 20 per cent. But they have shine. Capital Spreads quotes at price The contents of this column are provided for general information purposes only. One should consider the appropriateness At its last trading update, drinks recently been trading in range of 2,281.8p-2,285.2p. of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612 manufacturer SABMiller suggested between 680p and 700p. Traders will YOGESH CHANDARANA TUESDAY 20 NOVEMBER 2012 cityam.com 27 TRADING Seasonal bonus for shrewd traders HRISTMAS is close and there that the new leadership, unveiled last is a lot of Bah Humbug in the week, will not be able to overcome air. The FTSE 100 index is 5 CNBC vested interests to rebalance the econ- C per cent off its recent highs. omy, and keep growth within the The governor of the Bank of range of 7 to 8 per cent. England Sir Mervyn King said that COMMENT It sounds more like Bleak House the economy may contract again. than Festive Cheer. But things are As inflation squeezes real wages, rarely as bad as feared, and if I were a and public spending faces more ROSS WESTGATE trader, I might think that a lot of the cuts, it seems that there will be no negative news has already been pickup in real spending. third quarter earnings season has also priced into the market. The situation doesn’t look that been disappointing. Politicians are talk- The biggest gains are likely to stem great abroad either. The Eurozone ing the talk on resolving the fiscal cliff. from a deal that neutralises the has fallen back into recession, and But every day they prevaricate, invest- threat of the fiscal cliff. It is likely business surveys suggest that there ment is put off by companies – worried that Greece will get the next tranche is worse to come: both Germany’s by the uncertainty. of its bailout. It is unlikely that China Dax and France’s Cac 40 indices are The picture isn’t any better in Asia. will change its policy over the short down by over 4 per cent in the last After contracting by 0.9 per cent in the term, but the upshot is that the coun- month. The Troika (the third quarter, Japan’s economy looks set try should remain on course for International Monetary Fund, the for another recession. The government growth of 7.5 per cent. Sentiment European Commission, and the is desperately trying to free the country could also be buoyed by the fact that European Central Bank) still hasn’t from its deflationary spiral. However, Japan is, at the very least, prepared to agreed the terms for Greece’s after mounting pressure from opposi- try anything to kick start growth. bailout. tion parties, which want the Bank of Stick around. It may still be OK for In the US, stock markets are down Japan to ramp-up the printing presses in Santa. since the presidential election – the an effort to engineer inflation, elections Ross Westgate co-hosts Worldwide S&P 500 index has shed more than have been called. Exchange daily from London and anchors 10 per cent since September. The Over in China, investors are concerned Strictly Money on CNBC Bah humbug! ANALYST PICKS CURRENCY STRATEGIST STRATEGIST CHIEF STRATEGIST CHRIS VECCHIO ILYA SPIVAK JOHN KICKLIGHTER

My pick: Long dollar-yen, short Aussie-New Zealand dollar. My pick: Short euro-dollar and Aussie-dollar. My pick: Long Aussie-dollar, euro-dollar, and gold. Expertise: Fundamental and technical analysis. Expertise: Global macro. Expertise: Fundamental and technical analysis. Average time frame of trades: 1 day to 1 week. Average time frame of trades: 1 week to 6 months. Average time frame of trades: A few hours to a few days.

Last week’s trades (short Aussie-dollar, long sterling-yen, I sold euro-dollar at $1.2982 on 31 October after prices broke I added to these positions on Friday. However, with thin long dollar-yen) worked well. However, heavy fundamentals a rising trend line support. This hinted that the euro would trading conditions expected this week, due to the and the Thanksgiving holiday make for confusing times continue to decline. As traders flirt with $1.27, I will continue Thanksgiving holiday in the US, active trade management ahead. To curb risk, I will stick with the long dollar-yen based holding the trade. I expect the woes of the debt crisis to push will be required. The long Aussie-yen trade from ¥82.08, on my fundamental views. Aussie-New Zealand dollar may the pair toward my target of $1.2619. I went short Aussie- discussed last week, was closed at ¥84.10 for a 202-pip break a head-and-shoulders pattern. For a more risky trade, dollar on 15 November at $1.0381, as a bearish trend shift in profit. For the most part, this has to do with yen’s weakness going long euro-yen may work well, based on holiday hours the S&P 500 was likely to sink the the pair. I will hold this due to the political posturing in Japan, which may continue and a Greek aid program. trade with a target price of $1.0181. for several weeks to come. TUESDAY 20 NOVEMBER 2012 28 cityam.com CITYAMCAREERS.com @cityamcareers Recent scandals have led to more roles in regulation, writes Annabel Palmer

KEY STATISTICS ON Compliance has emerged as JOBS IN a growth industry in the UK COMPLIANCE ECENT scandals in the banking compliance professional – a role the chief apply to these schemes and seek work sector have led to some discernible operating officer would typically have pre- experience within a regulated firm. There changes. Firms have come under viously performed. This has “taken the are ways to stand out from the crowd, for the regulatory microscope, market by surprise, pushed up salaries, example a securities and investment diplo- 57% R of risk and regulation resulting in large fines and reputational and led to a shortage of good candidates”, ma in regulation. damage. More regulation and increased says James Hollands of Alexander Black But compliance is not just for graduates. professionals received investor pressure to ensure adherence to Recruitment. It has also impacted hiring Black Swan has seen a variety of individu- a bonus in 2011 these new rules has led to enhanced patterns for fund managers, banks and als looking to change careers and move emphasis on the role and responsibilities professional services firms. into compliance; lawyers, auditors, and of the compliance team. And now Alexander Black has seen a 16.5 per cent front office professionals. Candidates financial firms are also hiring a steady rise in insurance-based compliance roles – often have a background in risk in invest- stream of lawyers and technology experts a significant statistic given the current ment banking or an accountancy qualifi- to equip themselves in preparation for market. Growth in this area is controlled cation, or a background in project Solvency II and Basel III. by the Financial Services Authority (FSA) management. and the more regulations it creates, the £135K THE RISE AND RISE OF COMPLIANCE higher the demand for individuals to meet KNOWING THE ROPES average salary for a Compliance jobs are now widespread in these requirements. Funds will generally seek experienced can- chief risk officer the industry. Many businesses are enforc- didates with either a legal or compliance ing restrictions on hiring, but compliance THE WHO background who ideally have “excellent is often kept separate, ring-fenced from Compliance is now seen as a career “in its product knowledge, multi-jurisdiction cut backs and redundancies. In addition, own right”, with graduates choosing it as exposure and new fund set up experi- banks are up-skilling their compliance initial career choice, according to Richard ence”, says Aoife Crawford of departments and raising their internal bar Aldridge at Black Swan Group. Large firms CuttingHedge Recruitment. Having a law as to what is necessary to maintain compli- started graduate schemes in compliance degree demonstrates analytical bent, giv- ance. around five years ago, with mid-tier hous- ing businesses someone who can read 24% The most significant jump has come in es quickly following suit. Graduates look- complicated legal documents and trans- increase in the number hedge fund roles, with most funds hiring a ing for a position in this sector should late them for a commercial audience. of compliance vacan- Compliance professionals will ideally cies from 2011 “know the FSA handbook cover to cover, and a background in macro and micro pol- icy is key to give balance”, says Hollands. Compliance is a highly important busi- ness area: the damage of getting it wrong can be vast. It is a technically competent area. Companies need to “pay people 78% of compliance profes- accordingly, as with any role in a techni- sionals are expecting a cally skilled business area”, says Marina pay rise this year Law of Robert Walters. FUTURE PROSPECTS A survey carried out by Robert Walters found that the majority of compliance pro- fessionals are expecting a pay rise this year, demonstrating optimism despite market conditions. However, as more indi- viduals get experience in the sector, an increased supply of candidates will emerge. This will, in turn, reduce the inflated daily rates that candidates – who have “become a premium commodity” – can currently demand, according to the Marks Sattin 2012 Market Report. Many rightly criticise the level of regula- tion that has emerged in financial servic- es, with the number of rules only likely to increase. New measures increase cost, hin- der processes, prevent growth and result in job losses. But regardless, some will gain from this unappealing trend. Although compliance jobs are highly technical and Scan here to go to require very specific knowledge, they CITYAMCAREERS.com could be a useful career choice for the Taking a closer look right candidate. JOBSoftheWEEK COMPLIANCE HEAD OF TRAINING INDIRECT TAX SENIOR MANAGER INVESTMENT DIRECTOR IT DEVELOPMENT MANAGER FUND ACCOUNTANT LONDON LONDON HONG KONG LONDON SOUTH EAST £120k-£160k pa £80k-£100k pa, plus benefits and bonus Competitive £85k-£105k pa, plus bonus and stock £40-50k pa, plus benefits and bonus

A global investment bank is looking for a new A leading international financial services institu- A UK fund is looking to recruit a director with An international derivatives, commodities and This is a position assisting the head of operations head of training within its compliance depart- tion seeks a new principal indirect tax adviser. experience of investing in venture capital or pri- energy house seeks an IT architect. Knowledge at a fund and hedge fund manager. Must have ment. Financial industry background and mana- Strong experience in a range of indirect taxes vate equity opportunities. Must speak fluent of derivatives, commodities, energy trading nec- fund accounting experience and a basic under- gerial experience desirable. throughout Europe is a requirement. English and fluent Mandarin and/or Cantonese. essary; experience with Java/C++ desired. standing of investment funds.

http://www.cityamcareers.com/job/32135 http://www.cityamcareers.com/job/31905 http://www.cityamcareers.com/job/7671 http://www.cityamcareers.com/job/32038 http://www.cityamcareers.com/job/32090 TUESDAY 20 NOVEMBER 2012 30 cityam.com LIFE&STYLEHEALTH & GROOMING

WHO: Peacock’s Gym WHERE: Caxton Street North, E16 WHAT: Opened in 1978, Peacock Gym is one of London’s most White collar famous and respected boxing gyms. It rose from humble beginnings in a squalid room at the bottom of a block of flats to train boxers including Frank Bruno, George and Billy Walker. boxing dens Cost: £5 a session for white collar BOXING, IN some form, or other has strength is a mistake. Every punch comes boxing (Monday, Wednesday, been around for at least 5,000 years. It from the legs, so you have to work Friday: 6.30pm-7.45pm) has been practiced by everyone from everything out. Contact: Tel: 020 7511 3799 Roman slaves to Victorian gentlemen; “It’s also about conditioning the peacockgym.com from army majors to backstreet mind. You always see boxers skipping brawlers. Today it is still most strongly and that isn’t only to work on their associated with working class fighters footwork and stamina – although it’s slugging it out in East End gyms. But good for that too – it is also about the there is a growing trend towards white repetition, which helps to clear your collar boxing, with bankers and mind, allowing you to visualise your mortgage brokers taking to the ring in next fight. Boxing will help your speed, the pursuit of fitness and glory. your hand-to-eye co-ordination, your Enzo Giordan, who owns the Boxing overall fitness. It has it all.” London gym at Shadwell, says the sport is There are plenty of places for City the ideal way for City types to hone their workers to get stuck in across London physique and learn a new discipline. with many gyms offering special “Boxing is the ultimate work-out. “white collar” sessions. Here are some Thinking it is all about upper body of the best. By Steve Dinneen

WHO: Boxing London East to body-spar, meaning you’re less likely WHERE: 1 Martha Street, Shadwell, E1 to have to explain to the boss why you WHAT: A club that welcomes all, from have two black eyes and a flattened complete novices to hardened nose come Monday morning. pugilists. The gym offers advice on diet Cost: £50 annual joining fee, £8 a to help tone you up as well as improve session your left hook. White collar workers will Contact: Tel: 07956 293768 be glad that newcomers are encouraged boxinglondon.co.uk WHO: The Real Fight Club WHERE: 89 Worship Street, EC2A WHAT: The Real Fight Club claims to be the pioneer of white collar boxing in the UK, with club founder Alan Lacey introducing it this side of the Atlantic in 2000. It specialises in organising various events and fundraisers, including its “hero for six minutes” bouts and celebrity matches, which have involved Bob Mortimer and Princes William and Harry. Cost: Prices for events and training vary. Contact: Tel: 0207 392 2633 therealfightclub.com Relax with a herbal facial at the Chuan Spa THERE ARE treatments that change “congestion” off my forehead and down your day, and there are treatments that my “meridian lines” to my neck. After a change your outlook. SPA nourishing mask and a massage using a “You are dehydrated, congested and jade stone, my skin was lighter, brighter have burnt your face in the last year, BREAK and smoother. Auricular therapy, an haven’t you?” says head therapist Zoe important component of Chinese as I walk into the “Heaven” treatment medicine, ended the facial: four small room at the Chuan Spa. How did she CATHY ADAMS magnets stuck inside my ear designed know I had a cold and, earlier this year, to ease digestion and calm my hunger had fallen asleep on a sun lounger in minerals, taking inspiration from pangs, apparently. Marbella, Estrella in hand, only to wake Hippocrates notion of keeping the “four Scientists will definitely want to up with third-degree burns? Well, humours” – blood, phlegm, yellow bile check their disbelief at the door but I through my face, apparently. and black bile – in harmony by can’t deny that my eyes were wider and Chuan, in the basement of London’s physically “pushing” the toxins from skin clearer. I made a mental pact with luxe Langham Hotel, takes its your face. She did this by using a jade myself to drink less alcohol, get more inspiration from Chinese medicine. pen – jade having connotations of sleep and wear suncream at all times. Stepping in for its signature 75-minute richness and wealth in China, And if that is Chuan’s legacy, I think it Chuan facial detoxifies your face using apparently – massaging the can be counted as a success. The Chuan Spa takes its inspiration from alternative medicine TUESDAY 20 NOVEMBER 2012 LIFE&STYLE 31

Turbot charged Hawksmoor turns attention to the fruits of the seas about the deep, rich bone marrow RESTAURANT gravy which left no hint of cloy that HAWKSMOOR AIR STREET one often gets from such concoctions. 5a Air Street, London, W1J 0AD Meat lovers can, therefore, head to Tel: 020 7406 3980 Hawksmoor’s seafood restaurant without fear of being forced away FOOD hhhhi from their favoured land food. hhhii But whichever you prefer, the VALUE outcome is pretty much the same. The ATMOSPHERE hhhhi bream I ordered offered hugely satisfying thick chunks of moist and Cost for two people: £140 tender flesh, but also revealed the By Julian Harris potential downside to Hawksmoor’s cooking. The fish is advertised as ROPPING UP a cocktail bar being cooked with garlic, rosemary amidst the art deco and chilli, yet despite chunks of the surroundings of Hawksmoor’s former two lying on top of the fish, P Air Street branch, my mind barely any of the three were mused over the agonising misfortune detectable on one’s taste buds. of having been born into the wrong In these supposed times of era. As I sipped an unpretentiously austerity, some may wish a meal of satisfying whisky mac, the scene this price to provide clever and would have been so much more apt exceptional combinations of had I been clad in a loose fitting flavours. Hawksmoor, however, rarely three-piece suit while perusing a provokes a reaction of “wow, what’s newspaper from, say, November 1928, that?” This is more comfort food and puffing indifferently on a small than haute cuisine. The so called cigar. Jansson’s temptation – a side dish of Instead, alas, I was sat in our sterile potato, anchovy and parmesan – is 21st-century post-smoking-ban air, essentially a nice, heartwarming bit clad like a scruffy hack and of mashed spuds and cheese. The impatiently hitting refresh on Twitter swish-sounding dessert of on my iPhone. Down at street level, champagne jelly with grapefruit, brightly dressed bimbo tourists orange and mandarin in fact appears aimlessly peered into the Regent and tastes a bit like a fun public Street shop windows. The Hawksmoor’s move to fish maintains its “buy the best and don’t mess it up” philosophy school dining hall experiment. The timing of my birth can’t be Is this a bad thing? It depends on blamed on Hawksmoor’s owners, has used its latest branch to trial a seafood we buy isn’t cheap – the best recommend. Down an oyster, bite into your outlook. Personally I enjoy the however, and their new venture is a move towards seafood. “We decided to ingredients rarely are – but we think a sausage, wash down with a swig of mind-opening experience of trying welcome retreat from the modern apply everything we’ve learnt about it’s worth it.” Languedocian white. Lovely jubbly. posh, adventurous food, but when it world – whether or not you’re beef [pretty much: buy the best meat As my guest and I delved into Despite having the taste of sea on comes to the crunch I’m most happy pathetic and odd enough to hark possible and don’t mess it up] to the starters of half a dozen oysters our tongues, we thought a visit to with a glass of decent booze and a after a PG Wodehouse-esque golden fruits of the sea,” the menu explains. alongside some scallops gently Hawksmoor would be incomplete chunk of excellently cooked dead era. To this end they have teamed up roasted in white port and garlic, it was without at least one steak – and thus animal. Hawksmoor excels at the And the bold, 1920s-style lounge- with Mitch Tonks, proprietor of the difficult to dispute the menu’s claims. shared a 300 gramme fillet for part of basics, a point hammered home by like décor offers a fitting context for increasingly famous Seahorse The oysters rivalled the best I have the main course. Slightly charred on the fact that our meal included a side Hawksmoor’s trademark offerings. As restaurant in Dartmouth. The previously enjoyed – a title hitherto the outside, red in the middle, it was of spinach so brilliant that we are still with their other three London joints, superbly named Tonks has facilitated held by some I bought several years – as one would hope from the self- talking about it a week after the meal. the new restaurant aims for luxury an arrangement between Hawksmoor ago at Rick Stein’s seafood restaurant proclaimed steak specialists – near There is no denying that Hawksmoor’s without the frills. Gastronomic and a fisherman called Nigel, who in Padstow. perfect. mantra – “buy the best meat possible attainment is sought along simple, sends them fresh produce from the As with Stein’s offering back then, I could have picked the jug of and don’t mess it up” – has straightforward lines, ignoring any south coast every morning. How Hawksmoor’s oysters are available accompanying stilton hollandaise successfully been transferred to the need for complex culinary quaint. with a side container of juicy, sticky sauce and gulped it down, but quickly world of seafood. Bad news for fish, arrangements. “No middlemen. No warehouses,” coarse cocktail sausages; a quirky yet remembered to retain a semblance of great news for protein-loving The famous London steakhouse they boast. “As with our beef, the brilliant combination that I highly etiquette. My guest, meanwhile, raved Londoners. Why forgoing veal is now the real unethical choice

HE WIDESPREAD view that and is a very different product from where beef would be too strong. My beef with veal, think again. eating veal is unethical is well- the “white” veal favoured on the favourite way to eat it is a big chop founded and well-meaning but AMUSE continent. The meat is pinker on the bone with garlic butter and T out of date. because the animal has been chips, but braised shin or a lovely You can, though, see where it exposed to the outside world and is lightly cooked fillet with vine comes from. Even as a chef and BOUCHE fed on milk with grass or grain to tomatoes work well too. The Italian lifelong meat eater who generally supplement its diet. Purists might classics ossobucco or Austrian tries not to feel too sentimental BRUCE WILSON argue this makes the meat less wiener schnitzel are great veal about using animals for food (as delicate but, in my view, it more dishes but if you’re concerned about long as they have had good lives, Head chef, Paternoster Chop House than makes up for this in its fuller provenance when ordering veal in a been well-treated and humanely flavour. Far from being inferior, I restaurant, ask if it’s British. slaughtered), it is hard not to feel transported live, often for hundreds actually think it makes better eating. Making use of animals that sorry for the poor old veal calf. of miles, to market abroad. Don’t think of veal as just young would otherwise be killed at birth Actually, “old” is the wrong word But recent campaigns promoting beef. It has a completely different and wasted is a good thing for because male calves from UK dairy “rose” veal, using dairy calves from taste and texture – much softer, British diners as well as British herds that have no milking value are the likes of Gordon Ramsay’s F Word leaner and more tender, lighter in farmers – not to mention being often culled at birth (some 100,000 and TV farmer Jimmy Doherty, have both colour and flavour. Unlike beef, good news for the calves. It’s ironic last year). So the calf typically pointed out there is a more humane which I prefer served rare, I would but eating British rose veal now doesn’t even get slaughtered for alternative. British “rose” veal is always cook veal to medium. It can seems to be a more ethical choice food – it just gets killed or reared to higher welfare standards be used in all manner of dishes than not eating it. If you’ve got a TUESDAY 19 NOVEMBER 2012 32 TV & GAMES cityam.com

BBC1BBC1BBC2 ITV1 CHANNEL4CHANNEL4 CHANNEL5 TV PICK 6pm BBC News 6pm Eggheads 6pm London Tonight 6pm The Simpsons 6.30pm 6pm Home and Away 6.30pm BBC London News 6.30pm Strictly Come Dancing 6.30pm ITV News Hollyoaks 7pm Channel 4 News 6.30pm 5 News at 6.30 7.55pm 8pm CHOICE 7pm The One Show –ItTakesTwo 7pm Emmerdale: Bernice 4thought.tv 7pm Highland Emergency 7.30pm 7pm George Clarke’s Amazing Spaces EastEnders; BBC News Celebrity Antiques Road (Samantha Giles) returns to 9pm 7.30pm Highland Emergency; 5 8pm Heston’s Fantastical Food Holby City Trip the village. 10pm Fresh Meat 10.50pm Rory News Update 8pm 9pm CHOICE Last Tango in MasterChef: The 7.30pm UEFA Champions Peck Awards 2012 10.55pm 8pm Rolf’s Animal Clinic; 5 Halifax Professionals League Live: Juventus v Homeland 12am European Poker Newsat9 10pm 10.25pm 9pm CHOICE News Regional Dara O Briain’s Chelsea (Kick-off 7.45pm). Tour 1am Channel 4 Presents – 9pm Body of Proof LAST TANGO IN HALIFAX News; National Lottery Update Science Club 10pm ITV News at Ten Hannah 1.05am Sailing: America’s 10pm BBC1, 9PM 10.35pm 1.35am CSI: NY Imagine: The Many Lives 10pm Later Live – with Jools 10.30pm London News Cup Discovered KOTV 10.55pm Light-hearted drama about two old of William Klein 11.40pm FILM 2am CSI: NY Holland 10.35pm UEFA Champions Boxing Weekly Beach friends falling in love again when they Hollywoodland. 2006. 1.40am Volleyball 2.55am Bullrun: Cops, 11.55pm CSI: Crime Scene

TERRESTRIAL 10.30pm Newsnight; Weather Weatherview 1.45am Sign Zone: League: Extra Time Cars and Superstars 3.20am Investigation are reunited over the internet after 60 11.20pm 11.35pm Exploring China: A Culinary Storyville: Jonestown Take Me Out Freesports on 4 3.50am Freesports 12.40am Forensic Files 1.05am years. Derek Jacobi stars. TERRESTRIAL Adventure 2.45am Servants: The – The World’s Biggest Mass 12.45am Jackpot247; ITV on 4 4.20am Extreme Sailing SuperCasino 3.55am HouseBusters True Story of Life Below Stairs Suicide News Headlines Series 4.50am Volkswagen 4.20am House Doctor 4.45am 3.45am Lorraine’s Fast, Fresh and 12.45am BBC News 3am Loose Women Racing Cup 5.15am-6.10am Deal Divine Designs 5.10am Wildlife Easy Food 4.15am-6am BBC News 4am-6am BBC Learning Zone 3.50am-5.30am ITV Nightscreen or No Deal SOS 5.35am-6am Wildlife SOS SKY SPORTS 1 BRITISH EUROSPORT 12am Sun, Sea and A&E 1am 12.10am The Big Bang Theory 11pm Wheeler Dealers 12am 2.40am 1.10am 1am 7pm Football Asia: Soccer news 6.45pm MotoGP 7.45pm Supernatural Medium How I Met Your Mother Jungle Gold Swamp Loggers 3.30am 4.20am 1.40am 2.05am 2am 3am from the Far East. 7.30pm Soccer Strongest Man 8.45pm Boxing Bones Nothing Scrubs The American Guns Jungle 5.10am-6am 2.30am Special 10.30pm Revista De La 10.45pm GT Academy: Race to to Declare Passport Cleveland Show Pete Gold 3.50am Swamp Loggers 2.55am Liga 11.30pm Premier League Dubai 11pm Inside WTCC Patrol Versus Life Desperate 4.40am Discovery Atlas 3.40am DARA O BRIAIN’S SCIENCE CLUB Review 12.30am UEFA 11.30pm-12.30am Futsal Housewives 90210 5.30am-6am Meerkat Manor BBC THREE 4.20am BBC2, 9PM Champions League Goals 1.30am One Tree Hill

CABLE 7pm 8pm Football’s Greatest 2am Football ESPN Total Wipeout Don’t 5.05am-6am Switched DISCOVERY HOME & The comedian and his team of experts Asia 2.30am Revista De La Liga 6.45pm Eredivisie Review Show Tell the Bride 9pm Transsexual HEALTH investigate life, death and extinction,

CABLE 10pm HISTORY & 3.30am UEFA Champions League 7.45pm Tennis 9.45pm ESPN Teen, Beauty Queen Some with guest Mark Steel learning how to 7pm Dr Oz 8pm I Didn’t Know I Goals 4.30am Football’s Greatest Kicks: Premier League 10pm Girls 10.30pm EastEnders 11pm 7pm Storage Wars 7.30pm Pawn deflect an incoming asteroid. 11.45pm 8.30pm Was Pregnant 9pm Addicted to & 5am-6am Revista De La Liga ESPN Kicks: Serie A 10.15pm Family Guy American Stars Cajun Pawn Stars Food 10pm Freaky Eaters USA ESPN Kicks: Scottish Football Dad! 12.30am Some Girls 1am 9pm Storage Wars 9.30pm 11pm A&E 12am Addicted to SKY SPORTS 2 10.30pm Russian Premier League Transsexual Teen, Beauty Queen Storage Wars: Texas 10pm 1am 7pm Live UEFA Champions Review 11pm ESPN FC Press Pass 2am Sun, Sex and Suspicious Seeking Salvage 11pm Storage Food Wanted Down Under 2am 3am League: Benfica v Celtic (Kick-off 11.30pm Eredivisie Review Show Parents 3am Russell Howard’s Wars 11.30pm Pawn Stars 12am Freaky Eaters USA 4am 7.45pm). 10pm UEFA Champions 12.30am Planet Speed 1am Live Good News 3.30am-4am Some Storage Wars 12.30am Storage A&E A Baby Story 5am-6am League Goals 11pm Premier College Basketball 3.30am Live Girls Wars: Texas 1am Seeking Salvage Baby’s Room 2am 3am League Poker 1am Sports College Basketball 5am Planet American Pickers Ax SKY1 Unlimited 2am Sailing 3am-5am Speed 5.30am ESPN Kicks: Serie E4 Men 4am Swamp People 5am Premier League Poker A 5.45am-6am ESPN Kicks: 7pm Hollyoaks 7.30pm How I Pawn Stars 5.30am-6am 8pm Last Resort 9pm A League Premier League Met Your Mother 8pm Rules of Storage Wars: Texas of Their Own 10pm Nation’s Best GEORGE CLARKE’S AMAZING SATELLITE SATELLITE SKY SPORTS 3 Engagement 8.30pm The Big Am Dram 11pm FILM The One: SPACES CHANNEL4, 8PM 7pm Squash 8pm LPGA Tour Golf SKY LIVING Bang Theory 9pm New Girl DISCOVERY Futuristic martial arts adventure, The architect meets a man who 9.30pm British Basketball 7pm Criminal Minds 8pm Bones 9.30pm Suburgatory 10pm Tool 7pm Fast ‘n’ Loud 8pm Flying starring Jet Li. 2001. 12.40am bought a 1920s showman’s carriage 11.30pm Squash 12.30am-2am 9pm Elementary 10pm Chicago Academy: Boyfriends Behaving Wild Alaska 9pm Jungle Miami SWAT 1.40am Road Wars online, and visits a holiday home made LPGA Tour Golf Fire 11pm Criminal Minds Badly 11.05pm The Inbetweeners Gold 10pm Swamp Loggers 4.10am-6am Stargate SG-1 from a wartime vehicle. COFFEE BREAK QUICK CROSSWORD Copyright Puzzle Press Ltd, www.puzzlepress.co.uk  

23 38 10 13 29 20 28  SUDOKU KAKURO 16 7 23 17   34 16 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 14 11 block adds up to the total 33 numbers from 1 to 9 to solve this tricky Sudoku puzzle.     in the box above or to the 8 38 33 left of it. 21 7      You can only use the 26 22 37 digits 1-9 and you must not 45   use the same digit twice in 22 24     a block. The same digit may 30 13 29 31 8      occur more than once in a 3    row or column, but it must 12 24    be in a separate block. 6 23 15       14 12 4  ACROSS DOWN 1 Small trout-like 1 Cause (a liquid) to   silvery fish (5) spatter about (6) WORDWHEEL 3 Websites on which 2 Auction item (3)    E G to record individual 4 Animal skin (7) Using only the letters in the Wordwheel, you have opinions (5) 5 Kill intentionally (4)   ten minutes to find as many words as possible, I B 7 Bedding material (6) 6 Message none of which may be plurals, foreign words or 9 Elaborate song for transmitted by proper nouns. Each word must be of three letters R a solo voice (4) radio or TV (9) or more, all must contain the central letter and S V 10 Cereal grass (3) 8 Mark (~) placed LAST ISSUE’S 11 letters can only be used once in every word. There Young herring (4) over the letter ‘n’ 13 SOLUTIONS KAKURO is at least one nine-letter word in the wheel. Brick carrier (3) in Spanish (5) NO 15 Body of water between 12 Exhaust, use up (7) Israel and Jordan (4,3) 14 Desert garden (5) QUICK CROSSWORD 9 687 5 6 9 3 17 Large edible 16 Primitive 639 52478 1 SUDOKU   SCOPE HEIST 412 3 257 mushroom (3) multicellular L R E M R    8 221 3 4 5 9 18 Request on an marine animal (6) EATEN MAPLE   D C T B A 5 713 2 8 invitation (inits) (4) 19 Male red deer (4)          SAFEDEPOS I T 8 9 4 2 1 3 20 Grazing land (3) 23 Group which W D N M C 2 1 36 9 1 WORDWHEEL   21 Competent (4) released the CEMENTMI XER 142 7 3 5 71    R N H N U 22 Time of year (6) album Twilight 8 7 9 4 9 8 7          EARTH PANTS The nine-letter word was 24 Drying cloth (5) Of The Innocents A O A T T 7 5 1 8 2 6 4 9 3 NURSEMAID   25 Use jointly or in in 2007 (3) MADAM BEADY 869 143 52     common (5) cityam.com TUESDAY 20 NOVEMBER 2012 SPORT 33 Results :I@:BC8E;1=`ijk@ee`e^j(0( Fa_X,$+, on Sunday, and I can’t help GOLF seemed to change in him after that it was also pleasing to see Swede C8E;1J\Zfe[@ee`e^j Fm\ie`^_k*+'$, S wondering whether his Ryder Cup. 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K9i\jeXeZJlYYB_Xe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)' qualities of his great countryman, Elsewhere, Luke Donald’s victory J9ifX[ZYPX[Xm%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%* SAM TORRANCE >JnXeeY8j_n`e%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(. the late Seve Ballesteros. in Japan lifted him back into second SURPRISED A8e[\ijfeefkflk%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%' Jimenez completed a third bogie- in the world rankings. With Rory Finally, I was surprised and not 9(+cY-n(%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)( free round to claim the Hong Kong him to be vice-captain at the 1997 McIlroy at the top, it’s great to see a happy to hear that Lee Westwood KfkXc (,+%*fm\ij %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%+'- Open and become the oldest man to Ryder Cup, when Europe beat the European one-two and Luke has has dropped his caddie, Billy Foster. =Xcc1()*#(,-#(-'#(00#(00#*,-#*-,#*./#+'-% 9fnc`e^1PX[Xm)*$)$.'$*#Fa_X,,$(-$()'$+#8j_n`e win a European Tour event, just five Americans at Valderrama. done very well to follow his Lee works with him so I’m sure +*$0$((($(#J\_nX^($'$($'#B_Xe).%*$,$,0$)#K\e[lcbXi weeks short of his 49th birthday. magnificent 2011. he knows more about it than me, ($'$/$'#J`e^_+$'$(.$'% His style, which relies on craft TREMENDOUS Further congratulations are due but I believe Billy’s the best out @E;@81J\Zfe[@eej rather than a brilliant swing or Seve once gave me an enormous lift, to 21-year-old former English there and I’d like to see him back on MJ\_nX^ZG`\k\ij\eYJnXee%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%), :GlaXiXefkflk%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% +( ferocious driving power, has helped after I had played with and beaten amateur champion Tommy his bag when he has fully recovered MBf_c`efkflk%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(+ prolong a career that has now him to win the 1980 Australian PGA Fleetwood, who clinched his from a knee operation. Xcc\ 1 E\nQ\XcXe[))( /)%,fm\ij299DZ:lccld-/#;I=cpee ,*2?DIB9?\iXk_,$-, Xe[((/ ++%(fm\ij2?DIB9 ?\iXk_-$+* %Ji`CXebX)+. /'%)fm\ij2;GD; AXpXnXi[\e\0(#8;DXk_\nj.02K>Jflk_\\+$+- Xe[ 0*$' (/%*fm\ij2=;DBXileXiXke\-'ef %Ji`CXebXY\Xk Howzat! Hero E\nQ\XcXe[Yp('n`Zb\kj% =FFK98CC 98I:C8PJGIL< Sir Steve is a N\jk?Xd%%%%%%%%%%%%%% '  ( Jkfb\%%%%%%%%%%%%%%%%%%%%%%%%%%% (  ( FË9i`\e+/ NXck\ij(*  8kk1*,#'',   G N ; C = 8 >; Gkj DXe:`kp%%%%%%%%%%%%%%%%%%%%%%%%%() / + ' ), (' (, )/ hit in Sri Lanka DXeLk[%%%%%%%%%%%%%%%%%%%%%%%%%() 0 ' * )0 (. () ). :_\cj\X%%%%%%%%%%%%%%%%%%%%%%%%%%%%() . * ) )+ (* (( )+ N\jk9ifd%%%%%%%%%%%%%%%%%%%%() . ) * (0 (* - )* BY SPORTS DESK STAFF Laureus Academy member C<@:`ic 8GDZ:fp *$( Apsara, whose drawing of girls (%('(I\[IflYc\ JKn`jkfe$;Xm`\j .$):f=Xm)Efd;\ playing sport will adorn the limited >l\ii\ N?lkZ_`ejfe 0$)*EfYc\N`ke\jj 8Gf^jfe .$) :f=Xm edition timepiece. Proceeds from )%('(8ZkF]BXcXe`j` KAFË9i`\e .$+):`Z\ife 8`[Xe sales will go towards supporting all :fc\dXe ('$(*:flik@eJ\jj`fe 8GDZ:fp ,$+=Xm the foundation’s projects worldwide. )%+'(Fg\e;Xp 8GDZ:fp ,$)=Xm)>iX]`k\ AXd\j While there Redgrave also 9Xebj ()$(*D`ejbpD`e\ IpXeDX_fe 0$) *%('(G\XbJ\Xjfej >A>Xcc`^Xe 0$()Fl\jkXie\i /$( 30 youngsters who take part in the *%+'(K\Xc`jj`f ;:ifjj\ ,$()9\e\]`k:lk KAFË9i`\e  initiative, set up to help rebuild the 0$+Ak=Xm*BXpc`]8iXd`j JKn`jkfe$;Xm`\j 0$+Ak=Xm community in one of the regions GCLDGKFE ()%,'(KlieFm\iJ`mfcX IK_fiekfe /$(*=Xm)Cffb`e^ devastated by the 2004 tsunami. ?fg\]lc 9A>\iX^_kp .$)*@em`ZkXCXb\ :9fc^\i ()$( He also took to the crease to face (%)'(9ifX[YXZbYfY 9A>\iX^_kp *$('=Xm)?`^_nXp some testing deliveries from youths :f[\ A<Dffi\ +'$(*9XccpgXki`Zb ;\ddX>iXZ\p$ stretches beyond the confines of a Sir Steve showed off his batting skills in a game with cricket-mad ;Xm`jfe (.$)*Cfi[J`e^\i A<Dffi\ (($) rowing boat by stroking a handful of children from the Laureus project in Seenigama, near Galle, Sri )%,'(G\k`k\ddX>iXZ\p$;Xm`jfe -$(*FeK_\=\Xk_\i A<Dffi\  .$)Ak=Xm taken part in some important and almost as handy with the willow as he is with a set of oars *%,'(=flekX`ejDXip IXZ_X\c>i\\e (($()M`mXJk\m\ ; exciting events since I became a iflj\ J;\JfljX -$( meet young Kumara and give her limited edition new watch from IWC Schaffhausen (left). She won )%*'(;`c\kkXKfddXjX 8e[i\X8kq\e` .$))J\Zi\k this prize was one of the best.” a commemorative plaque and a laptop Jpdg_fep CGB\e`ip (($+*DpqXdfli J`dfeG\XiZ\  )'$( *%''(N`ccfn9\Zb EDXZbXp ,$+)Ji`eX^Xi>`ic < 8_\ie ('$((=Xm*@kËjDpK`d\ GDXb`e 0$( *%*'(KXiffh N`cc`Xd:Xijfe ($)=Xm)C`^_k=ifdDXij J;fef_f\ )$(*9\iY`Z\ >C\\ (+$( IN BRIEF +%''(:fZbe\p;XeZ\i IN`ejkfe +$()Ale^c\9Xp @Xe 9liej (($)*=XYc\[:`kp 8B`iYp -$( Top jockey Dettori facing D-Day Cavendish hit by GB cycling curse Wayne Rooney is absent alongside top +%*'(B`e^jZif]k A=Xee`e^ 0$))IXjXdXe >C\\ (+$(* C`^_k9lijk JNB\ccp *$(=Xm n scorer Robin van Persie. Captain Patrice CYCLING: Britain’s Mark Cavendish Evra, Rio Ferdinand and Ryan Giggs also ,%''(Jfd\dfk_\ij[f_Xm\d 8B`iYp 0$))>XYi`XcËjB`e^ escaped with bruising after a collision J;fef_f\ .$)*=fidXc9`[ >C\\ +$( in hearing over failed drug test have not travelled to Turkey. ,%*'(9fX J_`ic\pK\Xj[Xc\ ),$()?fe\jk;\Xc I with a car while training in Italy N`ejkfe .$(*J`i9fjj EXkXj_Xiflg< possible six-month ban today when expected to apply similar bans. third successive title could be he appears before French horse Dettori, 41, split from Godolphin =:Efi[jaX\ccXe[mJ_Xb_kXi;fe\kjb%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% scuppered in this week’s decisive final Alm\ekljm:_\cj\X%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% racing chiefs over a failed drug test. last month after 18 years with the United stars out of Turkey trip race by a recurring alternator fault. Red >iflg= Dettori, the best-known name in thoroughbred stable and had n FOOTBALL: Manchester United 98K<9fi`jfmmC`cc\ ,gd %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% flat racing for the past two decades, planned to pursue his career as a Bull team-mate Mark Webber did not manager Sir Alex Ferguson has left out finish Sunday’s US Grand Prix because MXc\eZ`Xm9Xp\ieDle`Z_%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% tested positive for a non- freelance rider next year. a host of key players from the squad to >iflg> of the issue, which has also forced 9\e]`ZXm:\ck`Z%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% performance-enhancing substance at The British-based Italian’s positive play away at Galatasaray tonight in the Longchamp in September, his test came on 16 September, when he Vettel to retire twice this year. The 25- JgXikXbDfjZfnm9XiZ\cfeX ,gd %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% Champions League, having already year-old called it “not good news”. >iflg? solicitor has said. had four rides on a day of trials for qualified for the knockout stages. :=I:clam9iX^X%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% The three-time Champion Jockey October’s Prix de l’Arc de Triomphe. >XcXkXjXiXpmDXeLk[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 34 TUESDAY 20 NOVEMBER 2012 SPORTcityam.com/sport @cityam_sport Hughes spared but could still No mutiny at go this week BY ALEX SHARP Chelsea, says QPR manager Mark Hughes was clinging on to his job last night after lengthy talks with club chiefs. Hughes did not take training yesterday and instead met chief executive Philip Beard to discuss Rangers’ woeful form. Di Matteo, as His representative Kia Joorabchian yesterday insisted reports of Hughes’ sacking were premature, calling them “not true at all”. However, QPR chairman Tony Fernandes is expected to debate the Welshman’s future with crunch looms the board before Saturday’s trip to Old Trafford. Speculation that Hughes is set to BY FRANK DALLERES ly but have won just one in seven and be axed has intensified following a take that dire form into a week that devastating 3-1 defeat at home to UNDER-FIRE Chelsea manager could have a decisive impact on their fellow strugglers Southampton on Roberto Di Matteo played down talk domestic and continental ambitions. Saturday. of dressing room unrest last night as Defeat in Turin would leave them The Hoops are bottom of the he prepared for an evening in his needing to beat Nordsjaelland in Premier League and without a win native Italy that could determine their final Group E match, and hope in 12 matches, five points behind whether he keeps his job. that Juventus lose to Shakhtar newly promoted Reading in 17th Victory tonight at Juventus would Donetsk in Ukraine. Any other results book their place in the Champions in the final round would see Chelsea League last 16, but defeat would eliminated. Another reverse at home leave them facing the likely prospect to Manchester City on Sunday, mean- of becoming the first holders to while, would leave them seven points crash out in the group stage. off the pace in the Premier League Raised voices from the Chelsea and increase speculation that former dressing room were overheard fol- Barcelona manager Pep Guardiola lowing Saturday’s shock Premier could replace Di Matteo. League defeat at West Brom, prompt- But he added: “I feel confident, we ing suggestions the team’s sudden have a good team and know the slump had provoked mutiny. importance of the match tomorrow, It has only heightened the pres- we know we have to play a good sure on Di Matteo, despite him lead- game. At the moment we are think- ing the Blues to an unlikely ing positively. We played a good game European Cup triumph just six at home against Juventus [the 2-2 months ago, yet he insists there is no home draw], it will be difficult tomor- problem among the squad. row for sure, but they are under pres- “It’s important we communicate sure to win the match as well, so it with each other and the players will make it an interesting game.” express themselves, I’ve always Di Matteo stayed coy on sugges- Hughes is without a league win this term encouraged that,” he said. “There tions he could drop £50m striker was frustration on Saturday because Fernando Torres, who has scored just place, who have a game in hand. of the result and this is normal when once in seven games, and erratic cen- After escaping relegation on the results don’t go your way. We owe tral defender David Luiz, but left-back final day of the campaign last ourselves a performance and any- Ashley Cole is fit again. season, Hughes spent heavily in the thing can happen, we’ve proved in He said: “There’s still another summer, recruiting 11 players in a the past that when it counts our [training] session to do and we’ll see squad overhaul including Esteban players can be relied upon.” how the players are, then I’ll make Granero from Real Madrid and Inter Chelsea started the season strong- the final decisions tonight.” Milan goalkeeper Julio Cesar. Former Tottenham manager Harry Redknapp is the bookmakers’ favourite to take over at QPR if Hughes is sacked. Hughes seems bemused by QPR’s dismal start to the campaign and O’Brien proves his point as Hammers held last week said he was still convinced that his side could reach a mid-table The Hammers were fortunate to while Stoke remain in 14th spot. finish in May. PREMIER LEAGUE trail by one at half time with Steven Kevin Nolan inspired West Ham, “Stability is absolutely what this Nzoni firing against the bar from 20 conducting the midfield with some club needs in the long term,” said WEST HAM UNITED...... 1 yards out, but Allardyce’s side intricate passing combinations but Hughes. “Until you get to that point immediately responded after the they could not find the winning goal where you can establish yourself in STOKE CITY ...... 1 break as Joey O’Brien tapped in his as Stoke looked to break on the the Premier League, then you have first ever Premier League goal from a counter attack. to go through periods where there BY ALEX SHARP Gary O’Neil cross within minutes of Matt Taylor nearly snatched the is doubt or apprehension about the restart. win in stoppage time but his volley what the future holds.” “The way we said to the full-backs was kept out by a superb reaction Despite the speculation Hughes is WEST HAM manager Sam Allardyce at half-time, ‘Let’s get forward more’ save from Stoke’s Asmir Begovic and expected to take charge of training put their recovery from a goal was key,” said Allardyce. the Potters stood firm for a point. this morning. behind to salvage a draw against “Kevin Nolan had a great chance “I thought we deserved three Fernandes has made a habit of Stoke down to his half-time pep talk, from George McCartney and that set [points] in the end, over the 90 vehemently defending his manager after the Hammers last night wasted the stall out for us. There were minutes. I thought Stoke were better on Twitter after each game but did an opportunity to go fifth in the several other chances that we had. than us in the first half,” added not mention Hughes following the Premier League at Upton Park. We needed to finish them off Allardyce. defeat to Southampton. Stoke went ahead on 13 minutes because we created enough chances “We had to recover from an Rangers follow the trip to Old from a corner routine when striker to win it, but we move on with extremely good goal from Jon Trafford with matches against Jonathan Walters evaded his marker, another point on the board Walters. It was well worked and an Sunderland, Aston Villa and Wigan ran across goal and hit a first-time reasonably happy.” extremely good finish. Having to as the club heads into a frantic and drive from 12 yards through Andy A point leaves West Ham seventh, come from 1-0 down in any Premier crucial winter schedule. West Ham could have gone fifth with a win Carroll’s legs on the goal line. behind Arsenal on goal difference, League game is difficult.” TUESDAY 20 NOVEMBER 2012 cityam.com 35 I can’t help wondering whether Jimenez’s enduring‘ success owes something to the inspirational qualities of Seve Sam Torrance: Page 33

THE LOWDOWN Permutations n Chelsea can clinch Cook demands better batting qualification with a win while a draw would be a major boost too. Defeat, however, after India strike first in series would leave them needing to beat Nordsjaelland and BY FRANK DALLERES hope Juve to lose their final match in Donetsk CAPTAIN Alastair Cook has warned England’s floundering middle order batsmen they must improve if the Draw on the cards? tourists are to level the series with n Juventus have only won one of their India in the second Test, which four Group E fixtures, 4-0 last time starts in Mumbai on Friday. out against Nordsjaelland, with goals Cook said he was “bitterly disappointed” after India clinched a from Claudio Marchisio, Arturo Vidal, nine-wicket first Test victory before Sebastian Giovinco (above) and Fabio lunch yesterday in Ahmedabad, Quagliarella. The Danish whipping where his 176 and Matt Prior’s 91 boys held the Italians in the previous provided England’s only resistance. match, while Juve also drew 1-1 at Jonathan Trott contributed just home to leaders Shakhtar Donetsk 17 over two spells, Kevin Pietersen and 2-2 at Stamford Bridge 19, Ian Bell 22 and Samit Patel 10, and Cook pinpointed a disastrous first innings batting display as the Hot shots root of his side’s failure. n Quagliarella (left), “We showed a lot of character in who scored the equaliser that second half of the game,” said at Chelsea, is Juve’s Cook. “But when you get bowled out leading scorer this for 190 in that first innings, on a season with eight. good wicket, is pretty much where Midfielder Vidal has we lost that game. It was turning, chipped in with seven, yes, but runs were able to be had while Nicklas Bendtner, out there, as we showed in our on loan from Arsenal, second innings.” is yet to score England added only 66 to their overnight score to reach 406, Cook and Prior both falling to Pragyan Home comforts Ojha, who finished with figures of Cook fell to Pragyan Ojha early on the final day as India wrapped up a nine-wicket win n 4-120 and nine wickets in total. This month’s defeat to Inter Milan India needed just 77 to win and was the first suffered by the club since first-innings double centurion their move to the 41,000-capacity Cheteshwar Pujara’s 41 sped them Botham in Twitter beef with Juventus Stadium last year. The 3-1 to their target, despite the loss of reverse also ended the 49-match Virender Sehwag (25), who was unbeaten run with which the caught by Pietersen at long-on off Bianconeri swept to the Serie A title Graeme Swann. Broad over “experts” barb last season. The champions currently It left Cook brooding on defeat in lead the Italian top flight by four his first Test as permanent captain, BY FRANK DALLERES Broad wrote: “Before u listen points from Inter having earned a sliver of hope on to too many ex playing ‘experts’ Sunday with his and Prior’s dogged SEAM bowler Stuart Broad being negative, ask them if they sixth-wicket stand. became embroiled in a Twitter ever won a Test series in “I’m bitterly disappointed,” the row with former England captain India....#28years”. GROUP E Essex opener added. “We had an Sir Ian Botham following Botham, who also argued that TEAM PLD W D L F A PTS outside chance this morning. We yesterday’s first Test defeat to Broad should be dropped for the Shakhtar 4 2 1 1 7 5 7 knew Matty and I would have to do India in Ahmedabad. second Test to make way for the the bulk of the work, but it can get Botham shot back on the pacier Steven Finn, retorted: Chelsea 4 2 1 1 10 6 7 easier later on in the day, as the micro-blogging site after Broad “@StuartBroad8 Didn’t average Juventus 4 1 3 0 8 4 6 heat drains the bowlers, and those suggested ex-players who fared 40+ with the ball overseas...! Not guys had been out there for a lot of little better on the subcontinent sure what I scored against India Nordsjaelland 4 0 1 3 1 11 1 overs. It was a very small chance, had no right to criticise. with the bat..? #justsaying”. but it was one we could have taken.” Corbisiero set to win recall as Ecclestone: New £410m lawsuit Lancaster shuffles his pack

BY ALEX SHARP in their first two tour matches. over Formula One sale is absurd “The priority now is to get the ENGLAND head coach Stuart selection right, with the physicality EXCLUSIVE offered “10 per cent above any where would he have got the money Lancaster looks set to ring the of the Springboks. Changes in BY CHRISTIAN SYLT genuine bona-fide offer put forward from? It’s just a tiresome lot of changes as he prepares his side for a personnel will give us some by any other competing buyer”. aggravation. His claim is an absurd crucial Test against South Africa on impetus,” said Lancaster. FORMULA One boss Bernie Its lawsuit claims Ecclestone claim. He didn’t know that the other Saturday. “Ben Morgan scored a hat-trick at Ecclestone hit out last night after an bribed BayernLB to sell its 47.2 per bidders were going to pay.” Australia surprisingly dominated the weekend, James Haskell is American company filed a £409m cent stake to CVC since it had BayernLB’s former chief risk officer England’s pack on Saturday and at desperate for an opportunity, Tom lawsuit against him and private pledged to retain him as F1’s chief Gerhard Gribkowsky was found least one change will be enforced as Wood is ready for a start, Alex equity firm CVC over the 2006 executive. Bluewaters says it gave “no guilty in June of receiving a £27m Harlequins prop Joe Marler is ruled Corbesiero is coming back. They will takeover of the motorsport series. commitment to him in that regard”. bribe from Ecclestone and his family out with a knee ligament injury. come into the equation.” Investment firm Bluewaters But Ecclestone told City A.M.: “He trust for steering F1 to CVC. BayernLB Marler could be replaced by Alex The likes of Geoff Parling, Tom Communications Holdings, which put it in writing that no matter what was not aware until late 2010. Corbisiero, who has shrugged off a Palmer, Manu Tuilagi, Tom Youngs made a bid to buy a controlling anyone else paid he would give 10 Ecclestone is being investigated by knee problem to play twice for and Charlie Sharples missed training stake in F1 in 2005 from German per cent more but unless there is a German prosecutors but has not London Irish in the past fortnight. yesterday with light knocks from the bank BayernLB, filed the suit on bank guarantee it doesn’t really been charged with any wrongdoing. However Lancaster has hinted he weekend but are expected to recover. Friday in New York. CVC was the matter. It’s hard to believe anyone He says he only paid the money could make more changes to deal England are desperate to beat the winning bidder and paid £1.1bn for would do that. What would be because Gribkowsky threatened to with the brutality of the Springbok Springboks at Twickenham in order F1 in 2006 but Bluewaters says it interesting to find out is at the time tip off the taxman with false forwards, who have led South Africa to boost their chances of being top was the rightful owner because it was he in a position to pay that and allegations about his tax affairs. to victories over Ireland and Scotland seeds for the 2015 Rugby World Cup. ALL ROADS LEAD TO VICTORY WITH MICHELIN TYRES.

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