But Labour and Tories Clash Over Whether Rupert Murdoch Is Fit to Run His Empire ILLUSTRATION by DEAN MORRIS by ILLUSTRATION
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BUSINESS WITH PERSONALITY WHY WE’RE BACKING BORIS See Page 2 ISSUEMEDIA 1,624 WEDNESDAY 2 MAY 2012 GIANTwww.cityam.com UNDERFREE SIEGE AS MPs STRIKE News Corp savaged in report – but Labour and Tories clash over whether Rupert Murdoch is fit to run his empire ILLUSTRATION BY DEAN MORRIS BY ILLUSTRATION BY LAUREN DAVIDSON was going on at his company.” Watson, scraped through with a vote attempt to influence Ofcom”. singled out as having misled the com- But MPs split along political lines of six to four MPs, with all the Tory Ofcom said it was reading the select mittee by deliberately withholding RUPERT Murdoch was yesterday lam- over a clause in the report which said members of the committee refusing committee’s report “with interest” information or answering questions basted by a powerful group of MPs for the tycoon “is not a fit person to exer- to back the final report in its entirety. and would continue to assess inde- untruthfully. turning a blind eye to instances of cise the stewardship of a major inter- Watson claimed he was standing up pendently the evidence from the cul- News Corp last night conceded the wrongdoing at News International. national company”, using words for what he believes because he want- ture department’s inquiry. “hard truths... that there was serious The House of Commons’ culture, widely seen as a reference to a cur- ed to avoid accusations that the com- The ten MPs were, however, unani- wrongdoing at the News of the media and sport committee found rent probe by Ofcom. The media reg- mittee ducked its responsibility. He mous in their agreement that three World, that our response... was too after its five-year investigation con- ulator is looking into whether BSkyB, expressed disappointment that not executives at News International slow and too defensive, and that cluded yesterday that “the whole and its dominant shareholder News all committee members felt “inclined “demonstrated contempt for parlia- some of our employees misled the affair demonstrates huge failings of Corp, is a “fit and proper” owner of a or confident to hold the most power- ment in the most blatant fashion”. select committee” corporate governance at [News broadcast licence and could force ful to account”. Former News International execu- But the media giant criticised the International] and its parent company News Corp to divest some or all of its But Conservative MP Louise Mensch tive chairman Les Hinton, News committee’s commentary on Rupert [News Corp]”, adding that the group’s shares in BSkyB. criticised Watson’s actions, calling Group Newspapers’ ex-legal manager Murdoch, calling it “unjustified and chief executive Rupert Murdoch The relevant section, proposed as an the clause “wildly outside the scope Tom Crone and the final editor of the highly partisan”. ▲ “exhibited wilful blindness to what amendment by Labour MP Tom of the committee” and an “improper News of the World Colin Myler were ▲ MORE ON MURDOCH: Page 4 Certified Distribution FTSE 100 ▲5,812.23 +74.45 DOW ▲13,279.40 +65.77 NASDAQ ▲3,050.44 +4.08 £/$ 1.62 unc £/€ ▼1.22 -0.01 €/$ 1.32 unc 27.02.2012 till 01.04.2012 is 99,462 WEDNESDAY 2 MAY 2012 2 NEWS To contact the newsdesk email [email protected] Why Boris Johnson is by far the best choice for Londoners OMORROW is decision time for and believer in individual freedom newspaper will see the funny side. strategy before, with governments Londoners. Our great city is at a for whom people’s backgrounds are Hundreds of thousands work in bank- cutting back on capital spending and Tcrossroads: it must choose who EDITOR’S not their all-defining characteristic: ing, wealth management and finan- using the cash on benefits instead – to elect as its mayor at a time of he has rightly refused to play divide cial services – or in industries that which is the reason for today’s inade- extreme economic uncertainty and LETTER and conquer politics with race, reli- depend closely on them, such as quate network. just months before the Olympics, gion or class. He understands that a accounting, law, consulting, recruit- Even if you can’t bring yourself to when the eyes of the world will be on low tax, open economy is what will ment, IT, property and a host of other vote for either of the two candidates London. Having carefully examined ALLISTER HEATH make London great once more. services. Ken also falls short on his as your first preference, you can still all the candidates, this newspaper Above all else, Boris is authentic: he attitude to public money, which he make a vital choice by making Boris believes that Boris Johnson is by far doesn’t pretend to be someone he would spend too profligately, and on your second preference candidate. the best candidate and that he them by whether their actions are isn’t. He has also been a relatively tax, which his instinct would be to Ask yourselves – who do you think deserves to be given a second term in helping or hindering the public inter- good steward of taxpayers’ money; he hike. The last thing we need is a would be best placed to represent City Hall. We hope our readers will est, prosperity and economic growth, rightly froze the Mayoral share of Mayor at war with the coalition, creat- London during the Olympics and the agree and give him their votes. and Londoners’ quality of life. council tax over the past three years ing division on every issue where Queen’s Jubilee celebrations? To bat City A.M. is in nobody’s pocket. We But Johnson understands the vital and wants to cut it by 10 per cent over there needs to be cooperation and for London when fighting for foreign are an independent newspaper and importance of private firms, entrepre- the next four. He understands that judicious, level-headed negotiation to direct investment and attracting glob- were critical of Johnson during the neurs and the City in creating jobs belt-tightening and cutting waste is ensure London gets the best deal. al job-creators? To speak up for read- riots. We also wish he would have and prosperity for Londoners. He is an necessary in the current climate. Livingstone’s one attractive pledge is ers of this newspaper? In every case, done more to reform Transport for optimistic, pro-growth, pro-risk tak- By contrast, Livingstone is a class to cut the price of public transport. Boris has the edge. He deserves a sec- London. We will support whoever ing candidate; he is excited by life and warrior, a throwback to a bygone era; Even if he could deliver it – and this is ond term on Thursday. wins when we agree with their poli- all of its opportunities, unlike his he may like to “joke” that we should highly doubtful – it would come at cies and criticise them when we dis- dour, bitter and negative rival. He is a “hang a banker a week until the oth- the cost of slashing investment in [email protected] agree – and we will always judge unifying candidate, an individualist ers improve” but few readers of this infrastructure. We have tried that Follow me on Twitter: @allisterheath Strong sterling ANALYST VIEWS Man boss Clarke defiant CAN MAN GROUP TURN shatters hopes AROUND ITS PERFORMANCE? of UK recovery Interviews by Peter Edwards SARAH ING BY TIM WALLACE in face of investor anger Singer Capital Markets BRITAIN’S manufacturers took a BY PETER EDWARDS AHL has been hammering in April as export under pressure orders plummeted because of the ANGRY investors staged a revolt over and was on average 14 per strong pound and the Eurozone pay at beleaguered hedge fund Man “ crisis, data showed yesterday. Group after chief executive Peter cent below peak at the On a day when the FTSE gained Clarke was awarded a $7m package end of March... Investor one per cent and the Dow Jones despite the sinking share price. sentiment is “fragile” and index hit a four-year closing high, Around one in seven shareholders the business remains heavily dependent economists nevertheless warned voted against the remuneration on an improvement in AHL. that rising sterling could threaten report while nearly a third came out any hope of an economic recovery. against Alison Carnwath, just days DAVID MCCANN ” Bank of England officials after Barclays investors criticised her believed its policy of quantitative role in handing a £17m package to Numis easing had helped push the pound chief executive Bob Diamond. down in recent years, which should Yesterday 14.9 per cent of Man To perform, AHL make UK firms more competitive shareholders failed to back the pay needs markets to against foreign rivals, boosting report, with 13.9 per cent voting trend for a sustained peri- exports and supporting growth. against it. “ But instead, fears over the state Results from the AGM also showed od of time (6-9 months), of the Eurozone economies have 32.6 per cent of shareholders did not GETTY rather than “risk-on risk- pushed the pound to its highest back Carnwath’s re-appointment, “We do not feel we need a big brother”, Man boss Peter Clarke told investors yesterday off” flipping... If AHL is level in almost three years against a with 29 per cent voting against her, unable to recover performance, earnings trade-weighted basket of although City A.M. understands she with our leading shareholders”. the firm saw $2.5bn of net outflows in and dividends could fall substantially. currencies, dashing hopes that the has the full confidence of the board.