BUSINESS WITH PERSONALITY

in association with
17 October Grange St Pauls Hotel, London
To book your tickets and see whos made the shortlist,
visit www.cityamawards.com
For general enquires contact jo.plinston@cityamawards.com| 020 8267 4043 | For sponsorship enquires contact harry.owen@cityam.com| 020 3201 8940
category sponsors venue sponsor champagne reception sponsor
in association with
Polls punish
Osborne as
debts grow
GEORGE Osbornes popularity fell to
an all-time low yesterday as govern-
ment borrowing ballooned despite
promises to cut the deficit.
Only 16 per cent now trust Osborne
to see the UK through the recession
just half the number that supported
him back in October 2010.
Faith in the coalition government
as a whole has also plummeted, with
just 24 per cent thinking it is good
for Britain, according to the poll
from ComRes and ITV News.
Government borrowing rose by
another 0.6bn in July a terrible
showing for a month that usually
records a large surplus.
Analysts were dismayed by the fig-
ures, blaming rising taxes and
flawed efforts to cut spending for the
slowing economy.
Britain is edging ever closer to a
vortex in which government borrow-
ing escalates whilst economic output
spirals downwards, said Tim
Morgan from City brokers Tullett
Prebon. The fact is that no-one gov-
ernment or opposition has any-
thing remotely approximating to a
workable plan, probably because no-
one dares tell the voters the truth.
Labours Rachel Reeves called on
the chancellor to change course and
spend more in an effort to boost eco-
nomic growth.
But Treasury minister Chloe Smith
claimed the deficit reduction plan
has boosted markets confidence in
the UK and held down interest rates:
It is the discipline weve applied
that is what allows us to then use
that credibility to help businesses
and households to keep costs down.
The government yesterday paid a
negative real yield of 0.025 per cent
on 1.25bn of 2029-dated debt.
Workers at Lonmins Marikana mine are gradually returning to their jobs, and a police presence has been established in case clashes restart
www.cityam.com FREE
that Lonmin would lose at least three
weeks worth of production, or
50,000 ounces of platinum, due to
the trouble at the mine, which last
week saw 44 workers killed in clashes
with the police.
Michael Rawlinson, head of mining
and metals at Liberum Capital, said
yesterday: Investors have been put
off again by this news from investing
in South African mining. Whilst
labour and union issues are most
acute in labour intensive platinum
and gold sectors, the heightened
politicised investment environment
is turning them off other mining
sub-sectors too.
Meanwhile, around a third of
Lonmins 28,000-strong workforce
reported for work yesterday, includ-
ing around 20 per cent of the striking
rock drill operators.
The platinum firm added there was
a highly visible police and security
EVERYTHING EVERYWHERE WINS FIRST STAGE OF THE RACE
BY TIM WALLACE
FTSE 100 5,857.52 +33.15 DOW 13,203.58 -68.06 NASDAQ3,067.26 -8.95 /$ 1.58 +0.01 / 1.27 unc /$ 1.24 unc
GETTING READY FOR 4G
ISSUE 1,701 WEDNESDAY 22 AUGUST 2012
See Pages 7 and 9
ECONOMICS: Page 5

Certified Distribution
02/07/12 til 29/07/12 is 131,194
Lonmin PLC
16Aug 15Aug 17Aug 20Aug 21 Aug
720
700
680
660
640
620
600
p
612.50
21Aug
Weeks of lost
production
Net debt to earnings* at
30 September 2012
How strikes could hit the balance sheet
0 2.9x
2 3.06x
3 3.91x
4 4.76x
SOURCE:Company data, Morgan Stanley estimates
presence at the operations if any
incidents of intimidation were to
start again.
Lonmin has agreed that no discipli-
nary action against those illegally
striking will be taken this week, after
South African President Jacob Zuma
declared a week of mourning for the
dead workers.
The shares closed up 0.41 per cent
at 612.5p yesterday as news of the
funding broke.
CRISIS-HIT miner Lonmin is now
considering a rights issue to shore
up its balance sheet as crucial fund-
ing tests loom. The group earlier this
week denied it would need to tap the
capital markets for cash.
Lonmin admitted the U-turn yester-
day, saying it was reviewing all the
options available to strengthen its
financial structure to recoup losses
as the strike continued at its
Marikana mine in South Africa.
It is thought the worlds third-
largest platinum firm is considering
a $1bn (633m) fundraising.
Lonmin also said yesterday that it
will probably breach its loan
covenants next month due to the
ongoing production strike.
Analysts from Morgan Stanley esti-
mate that 15,000 ounces of platinum
output have been lost as a result of
the strike, and the figure is a moving
target.
If no weeks of production had been
lost the analysts put Lonmins net
debt to earnings ratio, which
denotes how many years it would
take a company to pay back its debt if
its earnings remain constant, at 2.9
times based on spot prices at the end
of September.
But this quickly accelerates to a
ratio of 4.76 times if four weeks are
lost, meaning it would take Lonmin
nearly five years to pay back its debt
if the strikes drag on into September.
Deutsche Bank forecast on Monday
BY CATHY ADAMS
*before
interest, tax,
deductions &
amortisation
STRIKE-HIT LONMIN
PONDERSCASH
CALL
German banks want ECB
to be lenders watchdog
GERMAN lenders yesterday called
upon the European Central Bank
(ECB) to adopt supervisory powers
over the Eurozones financial sector.
Investors continue to expect the
ECB to start snapping up the debt of
struggling euro area member
states, and now it is also being
asked to take on a more proactive
role as a banking watchdog.
Germanys BDB banking associa-
tion, which represents big lenders
like Deutsche Bank and
Commerzbank, said that granting
powers to the ECB would cut out
any potential political interference
in banking supervision.
The influence of national politics
in supervision would be removed,
the BDB said in a paper that laid out
the suggestion.
European Union leaders agreed at
the end of June that a single bank-
ing watchdog must be formed as a
pre-condition to allowing Eurozone
rescue funds to directly inject cash
into struggling lenders, without
lending to a government first.
The move is designed to prevent
banking crises in struggling mem-
ber states such as Spain.
Yet the pressure on the Eurozones
under-fire areas has eased in recent
days as investors increasingly
expect the ECB to intervene in order
Generali set to exit US reinsurance
Generali has become the latest European
insurer to plan an exit from the US after
Italys largest insurer by annual premiums
put its US life reinsurance business up for
sale, according to a person familiar with
the matter. Citigroup is advising the
company on a sale of its Generali USA Life
Reinsurance unit, which could be worth as
much as $1bn.
Fed probes RBS over Iran dealings
Federal authorities in the US are
investigating RBS for possible breaches of
Iran sanctions in a probe that has already
led to the departure of a senior risk
manager. The bank is being probed by the
Federal Reserve and Department of Justice
after volunteering information to them and
UK regulators about 18 months ago, several
people close to the situation said.
China slowdown hits Rongsheng
Chinas Rongsheng Heavy Industries said
that in the first half of the year the
company only received new orders worth
$58m, evidence of how the global
economic slowdown is hitting the sector in
China after a boom of recent years.
Arrest adds to problems at StanChart
The founder of a bank in which Standard
Chartered has a significant stake has been
arrested by Vietnamese police on charges
of carrying out illegal business. Nguyen
Duc Kien, founder of Asia Commercial
Joint Stock Bank was held in connection
with violations at three firms.
Fifty Shades helps Barnes & Noble
The success of EL Jamess erotic trilogy
Fifty Shades was behind a 46 per cent
rise in quarterly digital content sales at
Barnes & Noble.
China bubble in danger zone, warns
Bank of Japan
China risks a repeat of Japans boom-bust
disaster 20 years ago as exorbitant
property prices combine with a
demographic tipping point, a top
Japanese official has warned.
Afren strikes oil as profits surge 621pc
FTSE 250 group Afren said pre-tax profits
increased by a staggering 621.7 per cent to
$316.1m in the half year as production from
one of its fields in Nigeria surged.
Peugeot may lose index place
Battered and bleeding cash, PSA Peugeot
Citron SA is in danger of suffering a
further blow: being kicked out of the CAC-
40 index of blue-chip French stocks next
month due to the collapse in its share
price in the past year.
Outlook brightens for Estonia
The near-term growth prospects for the
Eurozone's youngest member, Estonia,
could be better than previously expected,
thanks to a summertime uptick in
household spending.
THE S&P 500 hit its highest level
in four years in New York
yesterday, yet the benchmark
index later pared gains along
with other US equity markets.
In another day of light August
trading, the S&P hit 1,426.68, its
highest intraday rise since May
2008.
The index has gradually edged
up over the last fortnight a
trend described by some analysts
as a rally in slow motion.
Only three of the past 12
sessions have seen moves of 0.25
per cent or more by the S&P.
Some energy stocks initially
lifted shares on the S&P, along
with an ongoing bullish attitude
among investors that European
Central Bank chief Mario
Draghis pledge to do whatever
it takes to save the Eurozone
will soon come to fruition.
Yet by the close of play the S&P
had dropped 4.96 points, or 0.35
per cent, to end at 1,413.17.
While many investors remain
optimistic over prospects in the
Eurozone, and growth in the US,
the risk of shocks still hangs over
the worlds number one
economy.
Capital Economics released its
latest outlook for the American
economy last night, warning that
downside risks abound.
S&P hits a four
year high before
paring its gains
The ECB, led by Mario Draghi, faces calls to buy up bonds and supervise banks
2
NEWS
BY HARRY BANKS
BY JULIAN HARRIS
To contact the newsdesk email news@cityam.com
W
HEN he announced the UKs
largest ever merger in
February of this year,
Glencore chief executive
Ivan Glasenberg did so with a massive
endorsement of the industrial logic
behind such a deal.
Here was one of the worlds most
successful commodities trading
groups getting together with a mas-
sively powerful resources group in
which it already held a significant
stake.
We have a fantastic opportunity to
create a new powerhouse in the glob-
al commodities industry. The merged
company will be the most diverse
major resource group, combining two
complementary project portfolios
and pipelines with the best commodi-
ties marketing business in the world,
Glasenberg told shareholders.
He continued gushing to the point
Theres no sign of blinking yet from dealmaker Glasenberg
WEDNESDAY 22 AUGUST 2012
where shareholders must have felt
that if they voted for the 56bn they
would never have a worry in the
world again.
But by yesterday the rhetoric had
changed significantly.
The Xstrata deal, said Glasenberg, is
not a must do deal, as he spoke to
analysts after the groups results. If
shareholders have another opinion
and vote the deal down, it is their
choice, he says.
What has happened since the begin-
ning of the year is that Qatar
Holdings, an investment group that
counts holdings in Barclays, the
London Stock Exchange and
Sainsbury as part of its investment
portfolio, built up a 12 per cent Stake
in Glencores target, Xstrata.
Qatar, which is holding out for a
higher offer from Glencore while
threatening to vote the deal down,
maintains its Xstrata shareholding is
a long-term one and that it believes in
the long-term future of the group
regardless of whether the merger
goes through.
Others think that the Qataris, who
are being advised by Nicholas Shott
and others at Lazard, have been whol-
ly opportunistic.
They claim they have raised their
stake to a level where, with some sup-
port, they can block the mega merger
from going through while pinning
BRANSONS FIGHTBACK
Last week I bemoaned the way that
Sir Richard Branson refused to take
defeat gracefully on losing out to First
Group on the West Coast rail fran-
chise. I thought he was simply being
graceless but would drop the matter
after a period of moping.
But as the days go by, I cant help
feeling impressed by his dogged pur-
suit of a rethink of the decision.
Theres an internet-led petition
which was set up by a member of the
public that has already attracted
around 20,000 supporters and yester-
day Virgin published a list of 51 rea-
sons why it should retain its 15-year
franchise. Hes not going quietly.
their hopes on the fact that
Glasenberg will eventually pay up
because he wants the deal so much
(just look at those quotes again from
February).
Whatever the truth of each sides
intentions, neither want to blink first.
Shareholders vote on the deal on 7
September.
My hunch is that Glasenberg will up
his offer from 2.8 shares to every one
in Xstrata to three but not go as high
as the Qataris want at 3.25. That
might be enough to win the day, with
institutions such as Standard Life,
Schroders and Fidelity, more likely to
swing behind the deal.
But it will be a close call.
Glasenberg may have cause to regret
talking up the deals merits so much
when it was first announced. It will
be a massive anti-climax if it doesnt
now go through.
to weigh down on borrowing costs.
Bond yields fell again yesterday and
are expecting to sink further in the
coming days.
The yield on 10-year Spanish debt
came down another seven basis
points to 6.21 per cent, while Italys
equivalent sank over 11 basis points to
5.66 per cent.
Even in bailed-out Portugal, yields
on 10-years were down 35 basis points
to around 9.25 per cent.
Id buy into weakness at the front
end of Spanish and Italian curves,
said Peter Schaffrik, head of European
interest rate strategy at RBC. We do
believe that some intervention pro-
gramme is coming from the ECB.
However, any optimism was tem-
pered by a Moodys report that
warned that fiscal consolidation and
structural reforms are at best only
half-way complete, depending on the
country in question, and could take
several years.
Yet despite the warning, the report
nonetheless said that the reforms
were having a beneficial effect on
debt-struck Eurozone states.
MORE ECONOMICS: Page 5

The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
EDITORS
LETTER
DAVID HELLIER
david.hellier@cityam.com
follow me on twitter: @hellierd
nAllister Heath is away
HEDGE funds pose little threat to
the stability of the financial
system, according to a report
released yesterday by the Financial
Services Authority (FSA).
The survey of funds controlling
more than $380bn (241bn),
conducted over March and April,
found that they have a strong
ability to manage the liquidity of
their assets and liabilities.
The FSA found that, on average,
major funds leverage was no
higher than in 2010, and that
there was limited systemic risk.
FSA says hedge
fund risk is low
BY JAMES TITCOMB
VIRGIN Atlantic ramped up its move
into short haul travel yesterday with
a pledge to start flying between
London and Scotland if it clinches
more slots at Heathrow.
Speaking a day after the airline
unveiled a route between the
capital and Manchester, Virgin
Atlantic boss Steve Ridgway told the
BBC it was important to keep
Scotland connected. BA brushed
off the competition, saying it was
confident that our excellent
customer service and great value
fares will continue to set the
standard in UK short haul aviation.
Virgin plots
Scottish route
BY MARION DAKERS
THE jury in the trial of former
tycoon Asil Nadir was sent home
yesterday after an eighth day of
deliberations at the Old Bailey over
theft charges.
On Monday, the jury found Nadir
guilty of three counts of theft
amounting to 5.5m, and cleared
him of a fourth count.
The jury is set to begin delibera-
tions again this morning on a fur-
ther nine counts of theft with which
Nadir, the founder of Polly Peck
International (PPI), is charged.
Nadir, 71, has been charged with
13 specimen counts of theft in all,
Nadir jury still out as it mulls
remaining nine theft charges
BY MICHAEL BOW totalling 34m.
He was found guilty on Monday
of stealing 1.3m to buy PPI shares,
1m to spend on antiques, and
3.25m which went to 19 different
destinations. He was cleared of a
fourth count of theft of 2.5m.
PPI was a FTSE listed conglomer-
ate and a stock market star in the
1980s until it collapsed in 1990 with
debts of 550m. Its interests ranged
from South American fruit to
Japanese consumer electronics.
The trial at the Old Bailey, which
started in January, followed Nadirs
return to the UK in August 2010
after a 17-year absence.
THE FORUM: Page 14

WEDNESDAY 22 AUGUST 2012
3
NEWS
cityam.com
Former Polly Peck boss Asil Nadir had been living in northern Cyprus until his UK return
GLENCOREs high-profile merger
with Xstrata is not a must-do deal,
its chief executive admitted yesterday,
after the commodities trading giant
reported a 26 per cent slide in profits
in the first half of the year.
Chief executive Ivan Glasenberg said
that if the $30bn (19bn) merger of
equals werent to go ahead, it
wouldnt be the end of the world.
Glencore has been caught in talks
with Xstratas second-biggest share-
holder, Qatar Holding, which is
demanding an improved share ratio
to Glencores proposed 2.8 Xstrata
shares for each share in the merged
firm.
Qatar has increased its holding to 12
per cent of Xstrata from three per
cent after Glencores bid for the
miner was announced earlier this
year. Glencore still owns 34 per cent
of Xstrata, but Qatars holding could
be enough to block the takeover.
Glasenberg said yesterday that he is
standing firm on the 2.8 ratio offered,
adding that it was a good deal, and
it was one that has been agreed by
Glencore ready
to pull out of
Xstrata merger
BY CATHY ADAMS
Xstrata chief Mick Davis and inde-
pendent board members.
Weak commodity prices were
behind Glencores first-half profit
falls. The commodities giant saw its
first-half net profit fall to $1.81bn,
from $2.44bn over the same period
last year. Glasenberg added that he
saw no material improvement in
overall market or economic condi-
tions in the near term.
Meanwhile, Glasenberg shrugged
off any worries of clashes in its coal
mines in South Africa following the
violence at Lonmins Marikana mine,
adding that Glencore is a great sup-
porter of the country.
Glencore International PLC
20Aug 17Aug 15Aug 21 Aug 17Aug
362.50
360.00
357.50
355.00
352.50
350.00
347.50
345.00
p
360.00
21Aug
ITV could strike a deal with BT to
become the first terrestrial channel
to show live Premier League football,
it emerged last night, with the
broadcaster in talks about an
alliance that would see it screen
some of BTs matches from next
year.
Negotiations are at an early stage,
say sources close to discussions, but
BT is keen to extend its football
offering beyond its own BT Vision
TV network. The company is looking
at a number of options, including a
wholesale deal that may see its
channels shown on other pay TV
providers such as Virgin Media.
However, a deal with ITV would be
the most significant, as the
partnership would showcase BT to
the 13m homes without a pay TV
subscription. ITV which already
shows Champions League, FA Cup,
and international games has also
been sounded out about producing
BTs football channel when it
launches for the 2013-14 season.
It is unclear how many and which
matches BT would be willing to
allow another broadcaster to show,
having spent 738m on the rights
for 114 matches over the next three
seasons. The firms deal poses a
serious challenge to Skys grip on
live sport, but is seen by many as a
risky move from BT.
ITV and BT declined to comment.
ITV could show
Premier League
in deal with BT
BY JAMES TITCOMB
WEDNESDAY 22 AUGUST 2012
5
NEWS
cityam.com
Lines open 7 days a week, 8am-8pm, except bank holidays. Call us free on your landline; standard network charges apply to all calls made from a mobile phone.
Subject to credit check.
36 a month plan
includes:
600 minutes to all UK mobiles
and landlines (starting 01, 02, 03)
Unlimited standard UK texts
1GB UK mobile internet
Call 08080 00 00 52
Just 29 on a 36 a month plan
iPhone 4S
now and ask about next day delivery or go in store today
UK DEBT SHOOTS UP AS RECESSION DEEPENS
NET BORROWING
(excl. temporary efects)
NET DEBT
(excl. nancial interventions)
APR - JUL 2011 APR - JUL 2012
43.4bn 50.4bn
940bn
JULY 2011
1032.4bn
JULY 2012

MANUFACTURING ACTIVITY SEES

AUGUST COLLAPSE
BUSINESSES VIEW GOVERNMENT
POLICY AS INEFFECTIVE
30
20
10
0
-10
-20
-30
Aug 12 Aug 11
Output
Total
Orders
How efective do you think
the governments policy is on...?
Reducing taxation
54%Inefective 15%
Reducing tax complexity
69%Inefective 8%
Reducing business regulation
68%Inefective 8%
Simplifying employment law
62%Inefective 11%
THE UKS public finances came in
for a clobbering in July with spend-
ing rising rapidly and tax receipts
falling behind, according to the lat-
est data released by the Office for
National Statistics (ONS) yesterday.
The public sector borrowed an
extra 47.2bn in the first four
months of the financial year,
when correcting for one-off
movements, much higher
than last years figure of
35.6bn.
These figures challenge
the narrative of harsh
austerity, as public
spending is also
rising.
Excl udi ng
debt interest
payments the
government
spent 7.3 per
cent more in
July 2012
than the
same period
a year ago.
But receipts are
Deficit soars as
spending rises
and receipts dip
BY BEN SOUTHWOOD
down 0.8 per cent over the same
period, and for the 12/13 fiscal year
so far they are up just 1.1 per cent.
This relatively weak rise was partly
due to a sharp fall in North Sea oil
and gas tax revenue, as a result of a
shutdown at Totals Elgin gas field.
A Treasury spokesperson gave
falling taxation income as the rea-
son public finances were below
Office for Budget Responsibility
(OBR) forecasts, and stressed the
impact of adverse world economic
conditions.
But Ross Walker at RBS was pes-
simistic about the prospects for a
return to forecast, predicting the
governments current debt over-
shoot would reach 30bn by the
end of the year, extrapolating
from the 11bn gap over OBR
forecasts seen so far.
Nida Ali at the Item Club
agreed. Its looking like [the
OBR] will need to make some
pretty hefty upward revi-
sions to the projections for
the deficit, she said.
Weak data hampers George
Osbornes austerity plans
CBI trends survey reveals ugly
prospects for manufacturing
FACTORIES orders collapsed in
August with manufacturers
expecting months of weak output,
according to a survey of UK
business trends released yesterday.
A net balance of 21 per cent of
manufacturers reported a worse
than normal order book in August,
collapsing from Julys result, where
on net just six per cent reported
below normal volumes of orders,
the report from the Confederation
of British Industry (CBI) showed.
BY BEN SOUTHWOOD And though 22 per cent of
respondents expected increased
volumes of output over the next
three months, another 22 per cent
predicted a decline, as the UK stays
mired in its record-long slump.
Overall demand for
manufactured goods has eased back
this month, led by a weakening in
the consumer goods sector, said
Anna Leach at the CBI.
The economic environment for
UK manufacturers remains
challenging, with domestic demand
relatively muted and the ongoing
Eurozone crisis now seeming to
drag on broader global economic
momentum, Leach added.
Nawaz Ali at Western Union
warned that the governments
hopes to rescue the ailing economy
through export expansion seemed
unrealistic.
The coalition governments
hopes of using export growth to
help rebalance Britains flagging
economy took another blow this
morning following CBIs downcast
report on factory activity in
August, Ali said.
BUSINESS leaders are highly
sceptical about the possibility of a
recovery coming soon, and are
postponing investment decisions as
a result, a poll from the Institute of
Directors revealed today.
Almost two thirds of those polled
believe there is low or zero
probability of the UK climbing out
of its slump during 2012 and just
seven per cent deem recovery this
Firms hold back on investment
as they worry about recovery
BY BEN SOUTHWOOD
year highly probable.
Forty-four per cent of business
leaders polled reported postponing
at least one investment or
employment decision during the
year on uncertainty about the
economic climate.
Businesses also heaped scorn on
the governments handling of the
economy, judging them ineffective
by large margins on employment
law, business regulation and
taxation policy (see chart above).
Important: due to the fast moving nature of this market, all prices, offers and availability are subject to change. All information is accurate at the time of going to print. Price stated is for a limited promotional period only. Ask in-store for details. 1 Pay monthly prices subject to credit check and minimum term of 24 months on
selected networks & tariffs. New subscriptions only. Geek Squad Service Plans available from 13.99 per month.
5.3" HD Super AMOLED
display built into a light & thin
design smartphone.
Full touchscreen functionality
plus S Pen stylus for a richer,
more precise input experience.
Runs on Android 4.0
Ice Cream Sandwich.
5.3
dis
de
Fu
plu
mo
Ru
Ice
SAMSUNG GALAXY NOTE SSSSAAAAMMMMSSSSUUUUNNNGGG GGGAAALLLLAAAXXXYYY NNNOOOTTTEEEE
21
FREE PHONE
PER MONTH
1
OFFER ENDS 23RD AUGUST
SMART
DEAL
SMARTPHONE
0800 781 7975 carphonewarehouse.com mobile in store
JP Morgan Cazenove is acting as sole
financial adviser for Heritage during the
sale of its stake in Miran Block to Genel
Energy. It has worked with Heritage
since its IPO back in 2008. Barry Weir,
James Taylor and Neil Haycock are the
lead advisers on the deal. Weir, who
heads the natural resources team at JP
Morgan Cazenove, has worked on
several deals this year. In February, he
advised the buyout firm TPG Capital on
a takeover of GlobeOp Financial. He has
also, alongside Neil Passmore and Ian
Hannam, worked on the Xstrata and
Glencore merger. Additionally, Weir
worked on the merger of Kama Mining
Company with Uralkali. Last year he
was part of the advisory team working
with Gem Diamonds regarding a
possible merger with Lucara.
Meanwhile, Taylor and Haycock worked
on the Essar Energy IPO back in 2010.
The JP Morgan Cazenove trio Weir,
Taylor and Haycock have been
working with Heritage this year on the
237m rights issue, and on the
proposed acquisition of OML 30 in
Nigeria.
ADVISERS JP MORGAN CAZENOVE
BARRY WEIR,
JAMES TAYLOR,
NEIL HAYCOCK
JP MORGAN CAZENOVE
Genel, led by former BP boss Tony Hayward, has bought a majority stake in the Miran Block
BOTTOM LINE: Page 9

WEDNESDAY 22 AUGUST 2012
7
NEWS
cityam.com
SERVCORP, THE WORLDS
FINEST SERVICED OFFICES
Level 17, Dashwood House
69 Old Broad Street, London
T l 0207 786 6700
Level 18 Canary Wharf
40 Bank Street, London
T l 0203 059 7945
Sorry
Regus
VIRTUAL OFFICE -
EVERYTHING BUT THE OFFICE
140 locations worldwide
W l servcorp.co.uk
Your dedicated receptionist
Your prestigious address
Worldwide access to boardrooms,
meeting rooms and business lounges
1ST MONTH FREE - NO FURTHER OBLIGATION
The new
jobs website
for London
professionals
C
I
T
Y
A
M
C
A
R
E
E
R
S
.
c
o
m
LEADING NHS hospitals will be
encouraged to launch profit-making
ventures abroad to help subsidise
services in the UK, the government
said yesterday.
A new organisation, backed by the
department of health and UK trade
and investment, will seek to link
prominent British hospitals
possibly including Royal Marsden
and Great Ormond Street with
foreign governments who want to
tap British health expertise.
No public funds will be involved,
as investment for the new ventures
will come from profit from the
hospitals private work in the UK.
The NHS has a world-class
reputation, and this exciting
development will make the most of
that to deliver real benefits for both
patients and taxpayers, said health
minister Anne Milton.
Andy Burnham, Labours shadow
health secretary, said it was a good
idea in principle but raised fears
that it encourages NHS hospitals to
take on more private work.
NHS hospitals
told to make
money abroad
BY JAMES WATERSON
HERITAGE Oil has cancelled its
$370m (235m) rights issue to fund
its expansion into Nigeria, as it
announced yesterday it is to sell a 26
per cent stake in a gas block to Tony
Haywards Genel Energy.
The London-listed oil explorer will
sell part of the Miran Block, in the
volatile Kurdistan region of Iraq, for a
cash sum of $156m, increasing
Genels holding in the block from 25
per cent to 51 per cent.
Genel will also loan Heritage
$294m, which will be repaid by a
transfer of Heritages Middle Eastern
arm to Haywards oil and gas vehicle,
giving it full control of the Miran
Block.
After exiting the block, Heritage
will have no presence in the region.
Heritage Oil
calls off plans
for rights issue
BY CATHY ADAMS
Hayward, chief executive of Genel,
said yesterday: Our belief in the sig-
nificant potential of the region is
stronger than ever and we aim to con-
tinue to play a leading role in the con-
solidation and development of the oil
and gas sector in Kurdistan.
Shares in Heritage Oil yesterday
closed up 21.95 per cent at 205p.
Heritage Oil PLC
16Aug 15Aug 17Aug 20Aug 21 Aug
210
200
190
180
170
p
205.00
21Aug
Orange and T-Mobile given 4G
all-clear as new network born
EVERYTHING Everywhere, the
parent company of Orange and T-
Mobile, yesterday won a significant
victory as it received approval on
plans to launch Britains first high-
speed mobile data network.
It will be able to bring the 4G
service to the UK from 11
September, handing Everything
Everywhere a head start on rival
networks, after Ofcom freed up its
1800MHz airwave frequency. The
service is likely to roll out
gradually in the following months,
starting with major cities.
The company, which has 27m UK
customers, also said it will launch
BY JAMES TITCOMB a new network later this year
alongside Orange and T-Mobile.
Chief executive Olaf Swantee
has been looking at
the firms brand
strategy for some
time, but the firm
denied the venture
will be used to bring
customers under
one roof.
Rival
networks,
which will
have to wait
until Ofcom
auctions off
additional
spectrum before they can launch
4G services, hit out at the decision.
Vodafone said allowing Everything
Everywhere early access showed a
careless disregard for the best
interests of consumers and O2
said the decision undermines the
competitive environment.
Everything Everywhere also
announced it will sell part of
its 1800MHz frequency to
Three in line with EU laws.
The deal does not have to be
finalised until next October.
Olaf Swantee is launching
a new mobile network
Q
What is 4G and
why is it better?
A
4G is the next
generation of
mobile internet,
offering speeds comparable to home
broadband and allowing faster
loading of websites and downloads.
Q
Will it be available on my phone or
tablet?
A
Everything Everywhere can
activate 4G from September, but
few UK models can access 4G on the
firms 1800MHz frequency. This may
change with new iPhone and Nokia
models due later in the year.
Q
When will the other UK networks be able
to offer 4G?
A
Ofcom will sell 4G airwaves at the
end of the year. All the major
networks are expected to get a piece
ahead of launches next year.
Q
A
and
WHEN CAN I GET 4G
ON MY MOBILE?
THE DEBATE: Page 15

CITIGROUP is understood to have
lost three of its leading European
equities analysts in the last month,
following yesterdays confirmation
that the banks head of insurance
research has left the US firm.
Raghu Hariharan has jumped ship
to become director of investor rela-
tions at Prudential, one of the firms
he covered in his old job.
In addition Peter Atherton, head
of European utility sector research,
and Gunnar Plagge, head of
European technology research are
understood to have left the firm in
recent weeks following a round of
job cuts, according to Financial
News.
A spokesman for Citigroup
declined to comment on Atherton
and Plagge but told City A.M. that the
bank remains fully committed to
our leading equity research
division. Last month the firms core
Citicorp unit posted a six per cent
increase in first-half
net income, with
much of the gains
ascribed to a policy
of cost cutting at
the bank.
Citi loses three
top analysts in
the last month
BY JAMES WATERSON
BARCLAYS is considering bringing all
of its African operations under one
structure by the middle of next year,
it said yesterday.
The bank is in talks with South
Africas third-largest bank Absa about
the move, and hopes to streamline
operations in the continent.
Barclays bought 55.5 per cent of
Absa in 2005, but it is run as a sepa-
rate entity.
Absa itself already has subsidiaries
in Mozambique, Tanzania and
Namibia, while Barclays owns banks
and runs business units in countries
including Botswana, Ghana, Kenya,
Uganda and Zambia.
The group has previously extended
successful products from one bank to
others in the continent, such as
Absas bank assurance offering, and
may look to rationalise its product
range across the continent.
We have already consolidated the
regional offices for Absa Africa and
Barclays Africa, as well as introduced
a global product strategy for banking
across the continent, said Maria
Ramos, chief executive of Absa Group
Barclays looks
to combine all
African units
BY TIM WALLACE
and Barclays Africa.
The deal requires approval from the
board and shareholders of Absa as well
as regulators across Africa, but ana-
lysts believe combining the operations
could strengthen the banks position.
Barclays African loan book to grow
by an average of nine per cent per year
from 2011 to 2015 compared with five
per cent for the group, according to
estimates from Oriel Securities Mike
Trippitt.
Although names like Barclaycard
are used in South Africa it is not
thought that established regional and
national African brands will be abol-
ished if the plans go ahead.
Barclays PLC
16Aug 15Aug 17Aug 20Aug 21 Aug
200
190
195
180
185
p
197.05
21Aug
BRITISH banks have recovered
strongly from the financial crisis,
building up their balance sheets
and improving credit quality,
analysts at Liberum Capital believe.
And if the Eurozone crisis starts
to ease, banks like RBS and Lloyds
should be well on track to rebuild
capital and earnings levels, the
researchers forecast yesterday.
Pointing to European Central
Bank hints at further action to
reduce peripheral governments
borrowing costs and so cut the
chance of a messy break-up of the
currency area, Liberum upgraded
State-owned banks to flourish
if ECB takes steps to ease crisis
BY TIM WALLACE its ratings for RBS and Lloyds.
ECB quantitative easing seems
likely to kick the can for a couple
more years which critically allows
the UK banks to boost their capital
levels and reduce their GIIPS
[Greek, Italian, Irish, Portuguese
and Spanish] exposure, said the
research note.
Since June 2011, the UK
domestic banks GIIPS exposure
has decreased by 21 per cent.
Extrapolating this decline implies
RBS and Lloyds exposure of 38bn
and 13bn by the end of 2014 while
capital levels will have similarly
improved, enhancing the banks
resilience to later GIIPS exits.
WEDNESDAY 22 AUGUST 2012
8
NEWS
cityam.com
Stephen Hester and Antonio Horta-Osorio have been praised for rebuilding RBS and Lloyds
Citigroup CEO Vikram
Pandit is
reducing the
headcount
at his firm
IN BRIEF
CPP profits slump after FSA probe
nShares in credit card protection firm
CPP closed 23 per cent lower
yesterday after the firm announced a
24 per cent drop in underlying pre-tax
profits to 19.2m for the first half of
2012. The York-based company said it
had said aside a further 7.5m to meet
potential compensation claims
relating to the ongoing Financial
Services Authority (FSA) investigation
into the firms business practices.
Moodys downgrade Man Group
nRating agency Moodys yesterday
followed the lead of equity analysts
around the country and downgraded
alternative fund manager Man Group
following poor performance. The
agency announced it had downgraded
Mans debt rating by one notch follow-
ing the conclusion of a review started in
April. It said the downgrade reflected
the firms decline in assets under man-
agement and poor investment returns.
Siemens said to be mulling job cuts
nGerman engineering conglomerate
Siemens is in early internal talks to cut
thousands of jobs in response to a
weakening economy, particularly in
Europe, a German newspaper report-
ed. Decisions could be made in
October or November, according to
daily Boersen-Zeitung, which did not
specify its sources. A Siemens
spokesman declined to comment.
Siemens has 410,000 staff and
129,000 in Germany.
NEWSPAPER group Johnston Press
saw profits cut in two in the first six
months of the year as it was hit by
falling advertising sales, the compa-
ny reported yesterday.
The publisher of papers including
the Scotsman and the Yorkshire Post
said pre-tax profits fell to 8m as it
took in 13.9m less from advertising
than in the same period last year.
Johnston Press was boosted by a
30m payment from News
International after a long-term
printing contract was terminated.
Without accounting for the one-off
fee, turnover fell 16 per cent to
176m. Expenditure rose due to the
22.6m cost of removing staff and
writing off printing presses.
Five of the companys daily titles
were turned into weeklies in April as
part of a cost-cutting operation that
aims to save 25m this year. Chief
executive Ashley Highfield, who took
over Johnston Press in November last
Johnston Press
profits halve as
ad revenue hit
BY JAMES TITCOMB
year, said: The first half has been a
period of tremendous activity and we
have made significant progress.
Highfield has instigated a compre-
hensive facelift at the publisher,
relaunching 23 of its nearly 250 titles
and focusing on digital growth. Sales
of online advertising were a rare
boost, rising 8.4 per cent to 10.3m.
Shares in Johnston Press fell six per
cent in trading yesterday. Gareth
Davies of Numis said results were a
little below our expectations in a
very tough advertising backdrop.
I
T WONT work with your iPad 3;
therell be no more London 2012
events to stream on your phone by
then; and Facebooks still rubbish
on mobiles. Is the imminent
appearance of 4G in the UK really
something worth caring about?
According to the numbers, yes.
In October last year, a report from
Open Digital (full disclosure, co-
authored by my wife) calculated that
the cost of delaying 4G in the UK
could range between 550m and
915m a year, thanks to lost business
hours from slower downloads.
Individual delays might seem
insignificant, but the cumulative
cost is large, because business use
accounts for more than a fifth of
internet traffic. 4G will also be about
three times faster than 3G, and 30
times faster than 2G. Better coverage
for 4G will allow some to leapfrog
from sluggish 2G straight to 4G
though its unclear if this will
improve the inexplicably poor
reception in my corner of the City.
The delayed arrival of 4G in the UK
has become an embarrassment. The
Everything Everywhere rollout from
September will only be a preview for
the main event in 2013, following
the spectrum auction later this year.
With no further delays, that still
leaves us four years behind the first
European experiments and three
years behind the US. Its a costly
delay, and its past time to catch up.
BOTTOM
LINE
MARC SIDWELL
Johnston Press PLC
16Aug 15Aug 17Aug 20Aug 21 Aug
6.60
6.20
6.40
5.80
6.00
5.60
p
5.85
21Aug
ELECTRONICS retailer Best Buy
suspended its earnings forecast
yesterday over uncertainty about
its ability to continue to compete
as the company posted a 91 per
cent fall in profits in its second
quarter.
The American firm, which
appointed a new chief executive
and knocked back an approach
from founder Richard Schulze on
Monday, saw shares fall 10 per cent
on the news before recovering.
Best Buys profits in the three
months to 4 August were just $12m
Best Buys earnings slump lays
bare size of new chiefs mission
BY JAMES TITCOMB (7.6m) compared with $150m in
the same period a year ago. The
company said it was suspending
guidance on future earnings due
to lowered expectations for
industry wide sales and the
uncertainty associated with several
key product launches.
Hubert Joly was poached from
hospitality firm Carlson and will
start in September. He is tasked
with saving the firm in the face of
growing competition from cheaper
online retailers, as well as dealing
with further approaches from
Schulze, who claims to have a plan
to rejuvenate the company.
THE BOOM in Britons shopping
online and through their mobile
devices has left the retail sector
more vulnerable than ever to
internet crime, according to a
report from the British Retail
Consortium (BRC) published today.
It claims that crimes such as
phishing and identity fraud cost
retailers an estimated 205.4m in
2011-12 and now poses the biggest
emerging threat to the sector.
Personal identification-related
fraud is the most expensive type of
e-crime for shops and produced
20m of losses in 2011-12.
Internet crime
dents retailers
BY KASMIRA JEFFORD
WEDNESDAY 22 AUGUST 2012
9
NEWS
cityam.com
Best Buys new chief executive Hubert Joly will join the ailing retailer in September
WHoLz ScoTTisH LoasTzn & CHis
eoisois o= esicnvi - eoisois o= eiseoescxs - eoisois o= cnv wen=
19.9S
15 Eccleston Street,
London, SW1W 9LX
020 7730 6922
Swedeland Court,
202 Bishopsgate
London, EC2M 4NR
020 7283 1763
Cabot Place
Canary Wharf
London, E14 4QT
020 7715 5818
S
u
b
j
e
c
t

t
o

a
v
a
i
l
a
b
i
l
i
t
y

u
n
t
i
l

1
6

A
u
g
u
s
t

2
0
1
2
TELEPHONE RESERVATIONS ONLY.
Quote CITY AM when making your booking.
coio, eoceso on cniiiso wixe ceies on sio
"oisoALz TnANsronm A
cnzAT mzAL iNTo AN zvzNT
www.soisois.co.u
ricii !iuss
Roll on 4G: Needless delay has
been expensive for businesses
DELL last night warned of a
challenging second half as
customers cut back on computer
purchases in anticipation of the
launch of Microsoft Windows 8
software late in 2012, sending its
shares down three per cent.
The American PC maker said
revenues fell eight per cent to
$14.5bn (9.2bn), broadly as
expected, but warned that this
figure would fall between two to
five per cent in the next three
months.
Net income fell 18 per cent from
a year ago to $732m.
Dell outlook
disappoints
BY CITY A.M. REPORTER
VIRGIN Trains is pulling out all the
stops in its attempts to get back the
West Coast franchise, which it lost to
FirstGroup last week.
The firms spinners have dusted off
their finest quills to pen a sprawling
50-point paean to just how great
Virgin is at running trains.
Though at least half the points
on the list can be neatly sum-
marised as were pretty good at
customer service, more than
26,000 disgruntled passen-
gers have been persuaded
to sign an online petition
to get Virgin back on the
train tracks not bad in
two days, and well on the
way to 100,000, which
would trigger a
Virgin turns 50
shades of red
over route loss
Commons debate.
And the list itself makes for enter-
taining reading. Virgin Trains quite
rightly bellows about its capacity
increases in standard class, customer
services awards and charity work.
But the authors ran out of steam
somewhere around point 20, and start
to take credit for things like trains
being more environmentally friendly
than planes (just as well Bransons
not launching more domestic flights
in the near future) and the exis-
tence of its corporate Twitter
account.
You missed a trick, Virgin
flaks. What the Capitalist
remembers most fondly about
the route is the on-board
bacon butties, the damp card-
board aroma of which always
managed to cut through the
pong of the carriage toilets.
Nur Nadir has regularly been photographed during her husbands trial
Richard Branson is upset
about losing the rail line
NOT much is known about how
Polly Peck International founder
Asil Nadir spent his 17-year exile
in northern Cyprus.
But one things for sure he
wasted no time in wooing his wife
Nur, whos been a constant
presence at the Old Bailey this
week during her husbands trial
for theft.
According to reports, Asil and
Nur met when she joined his
For better or worse: 28-year-old
wife steals Asil Nadirs spotlight
Cypriot media company as an
intern and just 25 days later he
proposed and promoted her to
vice president of the firm.
Though the couple dont have
any children, should Nadir face
jail time Nur would be left in
charge of their menagerie of pets
including five dogs and four
parrots two of whom just so
happen to be named Polly and
Peck.
Got A Story? Email
thecapitalist@cityam.com
10
cityam.com
cityam.com/the-capitalist
THECAPITALIST
CITY stalwart Corney & Barrow is
shaking off its staid 80s image by
rebranding its bar and restaurant
offering. The wine bar chain is
repositioning itself to offer traditional
bars, cabin bars in train stations and
terrace bars that are more restaurant-led.
Corney & Barrow, which has 12 branches
in the Square Mile, rebranded its Masons
Avenue branch near Moorgate last week
with a private dining room and extended
wine list. Its out with the stagnant
furniture and limited beers on draught,
and in with the eclectic cocktail list and
leather rocking chairs. Earlier this month
its first cabin travel gastro bar pulled into
Waterloo station, and C&B is on the
lookout for other central stations, as well
as more sites for its terrace concept
with rumours that Paternoster Square is
next on the hitlist.
WEDNESDAY 22 AUGUST 2012
Forex Capital Markets Limited is authorised and regulated in the UK by the Financial Services Authority, registration number 217689.
* Restrictions may apply, see website for details.
Spread betting is a high risk investment and you could sustain a total loss of your deposited capital. Spread betting is not suitable for all investors and you
should understand the risks involved.
www.fxcm.co.uk
OPEN A FREE MT4 PRACTICE ACCOUNT
Scan QR code for your free demo account.
Enhance Your MetaTrader Trading Experience
Free VPS Hosting*
Accepting All EAs, Including Scalping EAs
1K Lot Sizes
Better Control of Slippage
No 3rd Party Bridges
No Auto Syncs
No Dealing Desk Forex Execution
Partial Closing Allowed
GOOGLE may have banked on their
former superstar Marissa Mayer
maintaining at least a small place in her
heart for the internet giant, despite
departing to become top dog at Yahoo.
Yet it appears that Mayer, who climbed
up the ranks to become a vice president
at Google, has already become a hard-
nosed businesswoman with little time for
sentiment. In a snub to Google-favoured
Android devices, she is set to give her
entire Yahoo fleet a new set of Apples
iPhones. Despite the considerable cost to
Yahoo, the move could help deliver
consistency across the firms, as well as
boosting morale an end already
achieved by granting Yahoos lucky
workers free food in the staff canteen.
IN BRIEF
Dev Secs makes 41m disposals
nDevelopment Securities yesterday
sold off a residential and two retail
sites at Westminster Palace Gardens,
Central London, the Wick Site in
Littlehampton, and a retail park in
Burnley for 40.9m. The Wick site was
pre-sold to supermarket Morrisons for
12.5m, which plans to develop a
47,500 square feet store, a petrol
station and a car park. Westminster
Palace Gardens, a Grade II-listed
residential block central London, was
sold for 20.6m, while Burnley was
sold for 6.5m.
UK Commercial swings to a loss
nUK Commercial Property Trust
(UKCPT) swung into the red in the first
half of the year and suffered a decline in
its net asset value. The largest UK com-
mercial property trust yesterday posted
a loss before tax of 4.43m in the six
months to 30 June against a profit of
32.8m this time last year, while NAV
fell from 75.5p a share to 72.3p. During
the period the company generated a
rise in annual rental income of 1.3m,
helped by 20 new lettings including
signing retailer Debenhams as its
anchor tenant at its 150m Riverside
redevelopment in Shrewsbury.
Mortgage and savings fraud soar
nMeasured fraud in the mortgage
industry soared between April and
June, while across financial services as a
whole fraud inched down, according to
figures from Experian. Thirty-nine in
every 10,000 mortgage applications
were fraudulent in the second quarter of
2012, a rise of seven on the same period
in 2011. Of these, almost a quarter were
due to applicants hiding adverse credit
information, while 21 per cent misled
firms about their employment history.
Savings accounts saw the same increase
in fraudulent activity, albeit from a
lower base, from six fraudulent applica-
tions per 10,000 to 13.
ROYAL Dutch Shell plans to spend at
least $1bn a year exploiting Chinas
potentially vast resources of shale gas,
the firms top China executive said
yesterday, part of an aggressive strate-
gy to expand in the worlds biggest
energy market.
Shell in March secured Chinas first
product sharing contract for shale
gas, hoping that getting in early will
allow it to be a big beneficiary from
the sort of boom in shale that has
transformed the US energy market.
Asked if the firm remained commit-
ted to a plan to invest $1bn a year in
Chinas shale gas over the coming few
years, Lim Haw Kuang, Shells top
China executive, said in an interview:
Yes, yes and yes.
If there has been an adjustment to
Shell planning
to invest $1bn
in China shale
BY HARRY BANKS
that pledge, it could only be an
upward revision, added Lim, a
Malaysian national and a Shell veteran
of 34 years.
Shell is also aiming to build a
$12.6bn refinery and petrochemical
complex in eastern China, a project
that could become the single largest
foreign investment in China.
Royal Dutch Shell PLC
16Aug 15Aug 17Aug 20Aug 21 Aug
2,275
2,265
2,270
2,255
2,260
2,250
2,245
2,240
p
2,250.50
21Aug
ROBIN HARDY
PEEL HUNT
Results ahead
of expectations
but the pre-close did
under guide on mar-
gins. Earnings before
tax and interest margins
grew by 320 basis points
despite the change in
focus from growth to
income generation and we are raising
forecasts by around ve per cent.

ANALYST VIEWS
HOW DID PERSIMMONS PERFORMANCE COMPARE TO
ITS HOUSEBUILDING PEERS? By Kasmira Jefford
BRITISH households were 1 a
week better off in July compared
to the same month a year earlier,
the largest annual increase in
more than two years, according to
the latest figures from Asdas
income tracker.
Families had 151 a week left
over last month after paying bills,
up 0.6 per cent on the previous
year and the second consecutive
albeit marginal increase
recorded by Asdas monthly
tracker.
The supermarket said
improvement was driven in part
by easing inflation, with food,
clothing and transport inflation
all falling over the month.
The unemployment rate also fell
to eight per cent during the three
Asda says disposable income
is up for first time in two years
BY KASMIRA JEFFORD
months to June 2012 a decrease
of 0.2 percentage points on the
quarter and the lowest rate since
June 2011.
Asda chief executive Andy
Clarke said the figures were a sign
of light at the end of the tunnel
for UK households. But he
warned that despite an improved
picture families have very real
worries about unemployment and
the fragility of the wider
economic situation.
Charles Davis, head of
macroeconomics at the Centre for
Economics and Business Research,
which compiles the survey, said
that it may not be all plain
sailing ahead and warned that
increases in the cost of crude oil
could well feed through into the
cost of living in the coming
months.
UKRAINIAN iron ore producer
Ferrexpo said yesterday its core
profit fell 40 per cent in the first
half, hurt by a rise in the cost of
extracting the metal and lower
global iron ore prices.
Ferrexpo said higher energy
Ferrexpo profit dented by rising
costs and falling iron ore prices
BY CITY A.M. REPORTER
costs and domestic inflation in
Ukraine pushed up the cost of
extracting each tonne by 25 per
cent in the first half of this year
compared to the same period in
2011. The company posted earnings
before interest, taxes, depreciation,
and amortisation of $240m (152m)
for the six months to 30 June.
WEDNESDAY 22 AUGUST 2012
11
NEWS
cityam.com
Households have enjoyed a small rise in disposable income, says Asdas Andy Clarke
The Color Company are here when you really need us. We are
Londons leading digital print company with locations throughout
central London with the added advantage of a 24/7 branch in the
heart of Mayfair.
Our range of services include onsite and offsite print rooms, bid
production, presentations, large format and exhibition graphics,
all produced throughout the day and night.
Drop in when you need us, even if it is 3am and you need
something printed and dispatched to New York for next day*
CALL US TO DISCUSS 0800 93 94 93
or FIND YOUR NEAREST STORE on www.color.co.uk
*Authorised Fedex ShipCentre provided is
subject to standard terms and conditions
THE PRINT COMPANY
THAT NEVER SLEEPS
e when you r e her The Color Company ar
Londons leading digital print company with locations thr
central London with the added advantage of a 24/7 branch in the
. t of Mayfair hear
vices include onsite and of Our range of ser
esentations, lar oduction, pr pr
oughout the day and night. oduced thr all pr
e ar eally need us. W e when you r
oughout Londons leading digital print company with locations thr
central London with the added advantage of a 24/7 branch in the
ooms, bid fsite print r vices include onsite and of
mat and exhibition graphics, ge for esentations, lar
oughout the day and night.
e e ar
oughout
central London with the added advantage of a 24/7 branch in the
ooms, bid
mat and exhibition graphics,
op in when you need us, even if it is 3am and you need Dr
something printed and dispatched to New Y
CALL US TO DISCUSS
or FIND YOUR NEAREST STORE
ovided is e pr *Authorised Fedex ShipCentr
ms and conditions d ter subject to standar
op in when you need us, even if it is 3am and you need
ork for next day* tched to New YYo
CALL US TO DISCUSS 0800 93 94 93
FIND YOUR NEAREST STORE .co.uk .color on www
ovided is
ms and conditions
op in when you need us, even if it is 3am and you need
Persimmon bucks the gloom
to deliver a surge in earnings
PERSIMMON reported a surge in
half year profits yesterday as it
focused on selling higher priced
family homes in more affluent
areas of the country, but
warned that mortgage
conditions for homebuyers
remained tough.
The UKs largest housebuilder
by market value said pre-tax
profits rose 65 per cent to
98.7m in the six months to the
end of June, while revenues rose
BY KASMIRA JEFFORD
by 13 per cent to 806.7m.
The firms strong results were
underpinned by a seven per cent
rise in average selling prices to
171,206 with completions up six
per cent to 4,712.
We anticipate continued firm
underlying demand for new
homes but this will remain con-
strained by the low level of mort-
gage availability, chairman
Nicholas Wrigley said. He added
that the FirstBuy scheme had
also enjoyed strong demand.
The group recently embarked
on a plan to return of 1.9bn to share-
holders over the next nine years.
Persimmon PLC
16Aug 15Aug 17Aug 20Aug 21 Aug
720
710
700
690
680
670
p
697.00
21Aug
RICHARD HUNTER
HARGEAVES LANSDOWNE
Whilst much of
the news was
trailed in Julys update,
the key metrics are
nonetheless impressive,
with noticeable gains in
revenues, legal comple-
tions, cash generation
and operating margins.
The groups cash position has now
turned net positive from negative.

CHRIS MILLINGTON
NUMIS
Persimmon
remains one of
the best housebuilders
operationally and its
...strong cash genera-
tion is second to none.
But with the shares
trading at a 20 per cent
premium to our full year
net tangible asset forecast, we feel the
shares are currently up-with-events.

IN BRIEF
CNOOC profits and dividend fall
nChina's leading offshore oil producer
CNOOC Ltd said yesterday its first-half net
profit fell by almost a fifth twice as much
as the market had expected and it cut its
dividend by 40 per cent to make room for
its $15.1bn acquisition of Canadian oil firm
Nexen. Shares fell as much as 5.5 per cent,
and closed down 2.96 per cent in Hong
Kong. January-June net profit slid to
31.87bn yuan (3.17bn) from 39.34bn
yuan a year earlier.
Bad first half at Gem Diamonds
nGem Diamonds first-half profit has
more than halved, it said yesterday, hurt
by a rise in costs and lower prices for the
precious stone during the period. Profit
before tax was $36.3m (23m), down
from $79m a year earlier. Revenue fell
nine per cent to $180.2m. Cost of sales
rose about 28 per cent to $105.4m.
Severfield drops on merger plans
nShares in steel firm steel firm
Severfield-Rowen fell yesterday after it
announced plans to merge three of its
UK businesses, and said underlying
profit for the first half of the year was
down 42 per cent. Profit before tax for
the period was 1.5m, compared with
3.4m the year before.
Lindt hit by Eurozone woes
n Lindt & Spruengli's said yesterday it
expects consumers to become even
more cautious as the Eurozone crisis
drags on as it reported a first-half net
profit that fell short of expectations.
The confectioner, famous for its gold
foil-wrapped rabbits, saw net profit rise
14 per cent to SFr36.6m (23.8m).
WEDNESDAY 22 AUGUST 2012
12
cityam.com
Oman delays weigh
on John Wood Group
BRITISH energy services company
John Wood Group is working hard to
resolve problems with two key con-
tracts that are holding it back, its
chief executive said yesterday.
Delays in a contract with Petroleum
Development Oman have ratcheted
up losses on the project and weighed
on John Woods shares, but the com-
pany said that it expects improve-
ment in the next year. It said that
losses in Oman would be $15m (9m)
to $20m in 2012.
The financial performance on that
contract has been disappointing but
... weve got a really good dialogue
BY HARRY BANKS going with the client in a range of
areas, chief executive Allister
Langlands said.
The contract doubts partly eclipsed
strong growth in other parts of the
business, with demand from compa-
nies working in the North Sea, Gulf of
Mexico and in US shale helping to
drive first-half revenues up 27 per
cent at its engineering unit.
The company said that it expects to
meet full-year expectations and
intends to pay a total dividend of 17
cents per share, up 26 per cent.
Earnings before interest and tax
were $205m in the six months to 30
June, up 53 per cent year on year.
Revenues rose 36 per cent to $3.35bn.
LONDONREPORT
Chartered Institute of
Internal Auditors
David Lyscom has been
appointed policy director of the
professional membership body.
He is a former UK ambassador to
the Organisation for Economic
Cooperation and Development
(OECD), and was also previously
UK ambassador to Slovakia and the International Energy
Agency (IEA). He will report to Dr Ian Peters, the
institutes chief executive.
RBS
The Royal Bank of Scotland has announced the addition of
two senior economists to its Asia Pacific research team.
Louis Kuijis joins as chief China economist from Fung
Global Institute, where he coordinated macroeconomic
research projects. He was also previously chief economist
for MF Global in Hong Kong and the World Bank in
Beijing. Enrico Tanuwidjaja joins as south east Asia
economist from Maybank, where he was the senior FX
strategist covering Asian currencies and macroeconomics.
The CityUK
Andrei Baev has been appointed UK chairman of the
representative bodys public private partnership and
infrastructure stream, which is run in liaison with the
Moscow International Financial Centre Initiative. He is a
finance partner at Berwin Leighton Paisner, and has 23
years experience working in Russia.
Jones Day
Scott Schwind has been appointed as a partner at the law
firm. He is an oil and gas industry lawyer and joins from
Thompson & Knight, where he was also a partner.
Schwind specialises in oil and gas transactions, is fluent in
Spanish and Portuguese, and has previously worked in
legal roles in Sao Paulo.
Allsop
The property consultancy has announced two new hires.
Rob Austen joins as a salaried partner in the residential
valuation team from Colliers, where he was a director. He
has also held roles at Jones Lang LaSalle and Humberts.
Barney Lewis joins as an associate in Allsops West End
investment and leasing team from Savills, where he
worked in its West End agency division.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
S&P 500 index
hits a four year
intraday high
U
S stocks fell yesterday after the
S&P 500 hit its highest level in
four years as the benchmark
index faced technical
resistance and traders cashed in
recent gains.
The S&P 500 index hit 1,426.68, its
highest intraday rise since May 2008.
Volume has been light, as expected
in August, and only three of the past
12 sessions have seen moves of 0.25
per cent or more by the S&P.
Its not uncommon that you run
into some resistance at new highs,
said Jim Paulsen, chief investment
officer at Wells Capital Management.
Traders sort of play for a while to
see which way the market is
ultimately going to resolve itself.
Stocks rose early in the session and
the euro rallied to a seven-week high
against the US dollar, bolstered by
talk that the European Central Bank
will act to lower Spanish and Italian
borrowing costs. Bets on action from
central banks in support of their
stalling economies have helped move
stocks higher.
However, US stocks lost
momentum after the first hour as
traders took profits.
The slow but steady climb over the
past six weeks was partly due to
better-than-expected data, including
payrolls, retail sales and housing
numbers that countered a previous
string of disappointments.
The US economy is showing signs
of picking up again, said Paulsen.
The Dow Jones industrial average
fell 68.06 points, or 0.51 per cent, to
13,203.58. The S&P 500 Index
dropped 4.96 points, or 0.35 per cent,
to 1,413.17. The Nasdaq Composite
lost 8.95 points, or 0.29 per cent, to
3,067.26. The CBOE Volatility Index
or VIX was up 7.4 per cent at 15.05
after hitting a five-year low of 13.30
last week.
B
RITAINS top share index advanced
yesterday in light trade, led up by
miners and banking stocks, as
investors speculated as to how
Eurozone policy makers would tackle the
regions debt crisis.
The FTSE 100 ended up 33.15 points, or
0.6 per cent, at 5,857.52, having shed 0.5
per cent on Monday, in volume at around
60 per cent of the 90-day daily average.
Cyclical mining stocks and banks, big
fallers in the previous session, were the
standout gainers, up 2.3 per cent and 1.5
per cent respectively.
I think the appetite for risk is still out
there, even though volumes are fairly
thin. Every dip seems to be seen as a
buying opportunity thats why the
indices are near multi-year highs, said
Manoj Ladwa, head of trading at TJ
Markets.
Conjecture continued as to whether the
European Central Bank was preparing to
cap the borrowing costs of troubled
sovereign borrowers.
The FTSE 100 has jumped around six
per cent since late July when ECB
President Mario Draghi said the bank
was prepared to do whatever it takes to
save the euro, sparking expectations of
bold measures to help lower the
borrowing costs of debt-stricken Spain
and Italy.
Commodities trader Glencore reversed
early losses, ending the session up 1.8 per
cent, after posting a smaller than
expected drop in first-half earnings,
while sticking to its guns on a $30bn bid
for miner Xstrata.
Insurers also saw good demand, helped
by bullish comment on the European
sector from JP Morgan Cazenove, which
said that some of the industry's major
stocks are looking oversold and the sector
offered an attractive dividend yield.
Eurozone chatter helps lift the
FTSE 100 in very light volumes
BESTof theBROKERS
FTSE
15Aug 16Aug 17Aug 20Aug 21Aug
5,880
5,870
5,860
5,850
5,840
5,830
5,810
5,820
5,857.52
21 Aug
DASHBOARD CITY
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
NEW YORK
REPORT
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
in association with
African Barrick Gold PLC
15Aug 16Aug 17Aug 20Aug 21Aug
410
400
420
430
440
450
460
470
452.00
21 Aug
p
AFRICAN BARRICK
Canaccord Genuity has cut its
target for African Barrick Gold,
Tanzanias largest gold miner,
from 440p to 380p and main-
tained its hold rating. In mid-
July the shares were trading at
just 320p but takeover specula-
tion has pushed up the price.
Mecom Group PLC
15Aug 16Aug 17Aug 20Aug 21Aug
72.50
70.00
75.00
77.50
80.00
82.50
85.00
87.50
82.75
21 Aug
p
MECOM
Peel Hunt has upgraded pub-
lishing giant Mecom to buy
with a target price of 167p after
the company said it was con-
ducting a strategic review of its
operations. The broker believes
this may result in the profitable
disposal of many assets.
James Fisher and Sons PLC
15Aug 16Aug 17Aug 20Aug 21Aug
620
630
640
650
660
670
680
673.00
21 Aug
p
J FISHER & SONS
N+1 Brewin has upped its target
price for Cumbrian marine trans-
portation firm J Fisher & Sons
from 780p to 799p with a buy
rating. The broker says the com-
pany offers a unique invest-
ment opportunity in growth
markets across the globe.
SHAREHOLDER advisory body Pirc
has advised investors in Essar
Energy to vote down the firms
chairman Prashant Ruia.
Pirc has concerns that Ruia,
whose family has a large indirect
interest in the London-listed firm,
is not sufficiently independent to
be an effective chairman. Essar
appointed Prashant after his uncle
Ravi stepped down from the role
last year to fight allegations linked
to the telecoms arm of the Essar
Group in India.
The body also recommends a vote
against the reappointment of
auditor Deloitte at the annual
meeting on 4 September, due to
potential conflicts of interest.
Pirc hits out at
Essar chairman
BY MARION DAKERS
T
HE City always eagerly awaits
the latest GDP estimates.
These figures dominate the
media headlines and huge
significance is attached to
trivial differences between market
expectations and the announced
figure, and to subsequent revisions
to the data.
But GDP is not something that
can be put in a set of scales and
measured accurately. The concept is
clear it is the value of national
output at market prices. But what
are market prices? How do we value
the public sector, where there are
no market prices? A series of
plausible conventions has evolved as
to how to value such activities. But
there is a substantial amount of
A
LTHOUGH the jury is still out
on nine of the charges in the
Asil Nadir case, the Serious
Fraud Offices (SFO) successful
conviction of Nadir on three
charges is a nice win following a two-
decade long pursuit of the tycoon.
Sadly, this success is not indicative of
the SFOs recent experience.
The Nadir case needs to be seen in
the right context: the case is 20 years
old. So, while the win for the SFO lays
to rest some old ghosts, it doesnt real-
ly tell us much about the agency today.
To understand todays SFO, we need
to move from Asil Nadir to the SFOs
own nadir: the breakdown of the
Tchenguiz case this summer.
The SFOs pursuit of property entre-
preneur Vincent Tchenguiz encapsu-
lates the organisations problems. The
Tchenguiz investigation showed us an
organisation beset by a lack of fund-
ing, a lack of regulatory tools, and a
lack of confidence.
The lack of funding is the most
important of all the SFOs problems. In
2011-12, the SFO budget was 36.8m,
nearly 30 per cent lower than the
Yesterday (Tuesday 21 August 2012), the price
of Gold hit its highest level in 3 months of $1641,
marking a 7.5% rally since 16 May 2012.
FACT OF
THE DAY
Trade today at www.cityindex.co.uk Spread betting, CFDs and
cityam.com/forum
In 2011-12 the SFO
budget was 36.8m
nearly 30 per cent less
than the 2008-9 budget
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

14
WEDNESDAY 22 AUGUST 2012
BARRY VITOU
Forget Nadir the SFO does not
have the resources to fight fraud
budget in 2008-9. The budget is pro-
jected to fall even further by the end of
this parliament to just over 30m.
This huge cut has two key conse-
quences. Firstly, it leaves the budget of
the SFO dwarfed by the budgets of
organisations that it might consider
itself up against. Secondly, this
squeeze comes at a time when the risk
of financial crime may be greater than
ever before.
Combine these factors with rival
international financial hubs, like New
York, being keen to capitalise on ques-
tions about the state of UK regulation,
and the importance of a properly and
fairly funded SFO becomes obvious.
With a reduced budget, the SFO is
left with little choice but to either take
on an increased workload and risk
making mistakes with under-
resourced investigations as it did
with the Tchenguiz case or be more
selective with the cases it pursues,
allowing many cases of serious fraud
to go virtually unexamined.
Either way, the reduced budget risks
seriously undermining UK Plc and the
SFOs reputation. Why be afraid of an
organisation that is seen as having a
low prosecution rate?
The consequences of a shrinking
budget also appear to have drawn the
SFO into a crisis of confidence.
Confidence never used to be an issue
for the SFO, for all the criticism direct-
ed its way. Between 2007 and 2010, the
agency conducted between roughly 40
and 60 property searches every year in
support of its investigations; in the
first three months of 2011 there were
16 raids. And then, in March 2011, the
Tchenguiz investigation began.
Between the beginning of that investi-
gation and this summer the SFO
reported no applications for search
warrants at all. Zero.
Budget cuts, embarrassment, and
resignations of key staff in the wake of
the Tchenguiz case; all have combined
to leave the SFO looking for a sense of
direction.
But its not necessarily all doom and
gloom for the SFO, as one or two fac-
tors could put a brighter complexion
on the agencys future.
Firstly, the government is starting to
introduce new regulatory tools that
might make its job easier. For instance,
Deferred Prosecution Agreements
(DPA) essentially plea-bargains that
would help corporates admit wrong-
doing in the UK in return for escaping
criminal proceedings are likely to
arrive in the UK next year.
DPAs, while not perfect, would help
improve corporate culture in the UK
by encouraging corporates to root out
bad behaviour.
Still, this added soft power needs
added hard power to go with it.
Incentives to self-report work best
when the alternative criminal pro-
ceedings by an enforcement agency
is too much of a risk. Unfortunately for
the SFO, thats not currently the case.
Secondly, the SFOs new boss, David
Green QC, has taken over the SFO and
has good plans for improvement.
Green has got off to a good start and
the recent recruitment of the respect-
ed retired judge Geoffrey Rivlin QC is
widely regarded as a coup.
But Green needs added investment
in time and resources to beef up the
SFOs firepower.
If the government wants to show
that its serious about combating cor-
porate fraud, and restoring the reputa-
tion of the City, then it needs to give
the SFO some serious support.
For an organisation so central to pro-
tecting the reputation of UK Plc, prop-
er funding is the least the SFO
deserves.
Barry Vitou is partner at Pinsent Masons.
arbitrary judgment involved.
Even in the private sector, a vast
array of disparate data and
estimates have to be taken into
account. Measuring GDP is as much
an art as a science. The sources and
methodology section of the
National Accounts tells us that the
potential margin of error around
any single estimate is plus or minus
1 per cent. A whole per cent! So
revisions of 0.1 or 0.2 per cent are
scarcely worth commenting on.
This inherent uncertainty of
measurement may offer a clue to an
apparent economic paradox which
is receiving a lot of attention at the
moment. Employment has been
rising, and is now effectively back to
its pre-recession peak. But GDP
remains nearly 5 per cent below its
previous high. This contrasts
dramatically with the UKs last big
recession a non-financial one in
the early 1980s. When output
regained its pre-recession level,
employment was 9 per cent below
its previous peak.
We have been here before. Not in
any of the post-war recessions, when
employment fell more than output
each time. But to the time of the
last financial crisis, in the early
1930s. Then, as now, the percentage
drop in employment was less than
that in output.
The output of the financial
services sector is notoriously
difficult to estimate. Last autumn,
an excellent article in the Bank of
England Quarterly Bulletin noted
drily that we should not have
unreasonably high expectations of
some of the proxy measures that
have to be used to estimate output
in the sector.
In other words, even the Bank has
not got much of a clue as to what
has been happening to output in
financial services. The key point
here is that output per worker in
this sector is exceptionally high.
Even a big fall in output does not
have much of an impact on jobs.
Is this what has really been going
on? The falls in GDP are broadly
correct. But the Office of National
Statistics has got the balance wrong.
Financial sector output is down
sharply, and the rest of the economy
is not doing too badly. This would
help explain why employment held
up much better than expected in
the financial crises of both the
1930s and now.
Paul Ormerod is an economist and
partner at Volterra Partners, and author
of Positive Linking: How Networks Can
Revolutionise the World (Faber and
Faber, 2012).
AGAINST
THE GRAIN
PAUL ORMEROD
How to unpick the apparent paradox of falling GDP and rising employment
In association with
TRADE GOLD TODAY WITH CITY INDEX
FX trading can result in losses greater than your initial deposit.
15
Plain packaging
[Re: As Australia confirms a law banning
branded tobacco packaging, should the UK
follow suit?, Thursday]
Whether plain packaging of cigarettes
prevents children from smoking is
irrelevant. Cigarettes are illegal for under
18s to buy, and draconian and nannying
measures like this will likely creep into the
alcohol and unhealthy food markets. Liberty
is liberty and, once its gone, its gone.
VictoriaHale
Smoking seems to provoke the most
interfering sentiments in the most liberal-
minded people. If, with all we know, people
want to smoke, then let them. Theyre
digging their own graves, not mine.
JoshMorgan
Vive la difference
[Re: Hollandes raid on the rich is the wrong
kind of revolution, yesterday]
Yannick Naud, by illustrating Francois
Hollandes appalling disdain for success and
capitalism, reveals a pleasant truth about
Britain. For all the media narrative about
banker bashing and attacks on corporate
greed, we are comparatively accepting of
success and wealth accumulation. We
should feel sorry for French business people
who are being driven from their country by
punitive taxation. But we should also be
proud that so many are seeking to come to
Britain, and London in particular. Although
our global competitiveness is slipping, we
can still call ourselves one of the best places
in Europe to do business.
AnthonyYates
F
OLLOWING the recent success
of Team GB at the London
Olympics, many people are
inevitably comparing
footballers with athletes. As
such, many expect fans and athletes
of other sports to dislike footballers.
But this comparison isnt entirely
fair.
The combination of enormous
wages, lavish lifestyles and bad head-
lines has made footballers fair game
for relentless criticism in the press.
As much as people look up to foot-
ballers for their abilities on the field,
they increasingly serve as figures to
be scrutinised and condemned.
We associate the smiling faces of
our Olympians with dedication,
patriotism and success; the opposite
of the sneering, spoilt footballers.
But while there is some truth behind
the perception, I dont see it as being
that black and white.
As aspiring athletes, we are
brought up with the belief that we
are ordinary people doing ordinary
things. Humility is encouraged.
While we all love what we do, we are
taught to work hard for it and main-
tain professionalism at all times. I
think many footballers are brought
up differently. Footballers talent is
spotted at a very young age, some-
times as young as three. They are
then taken every step of the way
through their development and
always made to believe that they are
special people with special skills.
Clubs may feel that its necessary
for footballers to be fussed over and
flattered, to help them realise their
potential. But I think this contributes
to the way that top-level footballers
have drifted out of touch with the
fans they are playing in front of every
week, for ten months a year. But
therein lies another reason why we
see so much bad behaviour and
unprofessionalism from footballers:
TOP TWEETS
So Richard Branson decides that, if you take
his train set, hell use planes instead. Virgin is
starting flights from London to Manchester.
@Bill20Four7
Public spending cuts? What cuts? UK central
government spending, excluding debt inter-
est, is 7.4bn up on last year.
@asentance
The deficit is increasing, not decreasing. Its a
total abject failure of the Conservatives to do
what they were elected to do.
@Peri300
What does it say when Peter Thiel, one of
Facebooks earliest investors and a board
member, sells the majority of his shares?
@AccentureSocial
Is the government right to seek to raise
revenue by selling NHS services abroad?
YES
This idea to sell the NHS abroad is not necessarily new. But these
proposals present an opportunity to do what is already being done
in a much more systematic way. We know the NHS is well-regarded
internationally, and these proposals mean we can help generate
additional income off the back of our reputation. The duty of any
NHS organisation, first and foremost, will always be to treat the
needs of its local patients as a priority. It is therefore highly unlikely
that this scheme would have a detrimental impact on patients in the
UK. But the health service is facing an unprecedented financial
challenge and, like any organisation, it must consider new ways of
working to survive. The healthcare industry internationally is worth
trillions of dollars. If the NHS can use its expertise to get just a small
piece of that pie, and help its financial balance sheet, then we should
welcome that.
David Stout is deputy chief executive of the NHS Confederation.
David Stout
NO
Katherine Murphy
The guiding principle of the NHS must be to ensure that care for
patients comes before profits. At a time of huge upheaval in the
health service, when waiting times are rising and trusts are being
asked by the government to make 20bn in efficiency savings, this
is another concerning distraction. The drive to increase commercial
ventures, which are naturally going to be important for hospitals
because they need to raise revenue, would result in the attention of
hospitals being taken away from their core purpose - to treat
patients in the UK. Attention would instead be focused on these
hospitals abroad. While there are some world-renowned and
exceptionally successful hospitals, already promoting their skills and
services abroad, unleashing this approach across the NHS risks
undermining the integrity of the health service. The priority of the
government, hospital trusts and clinicians should be NHS patients.
Katherine Murphy is chief executive of the Patients Association.
RAPIDresponses
they play so many games.
It is easy to point the finger at foot-
ballers when they dont deliver on
the pitch and are then seen stum-
bling out of a nightclub at 3am. It
may be a tired clich, but the fact is
they are human. And its hard for an
athlete from a different sport to com-
prehend dealing with the kind of
pressure and media attention that
footballers get every week.
I hate to shatter the illusion, but
Olympians are certainly not angels.
The Olympic Village is rightly famed
for its condom usage. Mind you, Im
not sure whos using them its cer-
tainly not me! Footballers are under
pressure to perform two, or some-
times three times a week, and when
youre in the spotlight that often, the
misdemeanours are bound to make
headlines.
But, although its unfair to com-
pare footballers with Olympians off
the pitch, one thing I cant condone
is the behaviour that you see on the
pitch. Its hard to have much sympa-
thy when week in week out you see
diving, cheating, spitting and swear-
ing at officials. This is not something
you would ever see at the Olympics,
and I think it could be largely eradi-
cated by a firmer stance from the
authorities.
Despite my love of football
(Plymouth Argyle F.C.), there are lim-
its to what I can support.
Greg Searle MBE is an Olympic gold
medallist. His autobiography, If Not Now,
When? is published by Macmillan, eBook
and Hardback (18.99).
WEDNESDAY 22 AUGUST 2012
GREG SEARLE
Printed by Newsfax International, BeamReach 5 Business Park, Marsh Way, Rainham, Essex, RM13 8RS
Distribution helpline
If you have any comments about the
distribution of City A.M.
please ring 0203 201 8955, or email
distribution@cityam.com
Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor Marc Sidwell
News Editor Elizabeth Fournier | Business Features Editor Philip Salter | Lifestyle Editor Zoe Strimpel | Sports Editor Frank Dalleres
Art Director Gavin Billenness
Commercial Sales Director Jeremy Slattery | Commercial Director Harry Owen | Head of Distribution Nick Owen
4th Floor, 33 Queen Street,
London, EC4R 1BR
Tel: 020 3201 8900
Fax: 020 7248 2711
Email: news@cityam.com
Editorial Statement: This newspaper adheres to the systemof self-regulation overseen by the Press Complaints Commission. The PCCtakes complaints about the editorial content of publications under the Editors Code of Practice, a copy of which can be foundat www.pcc.org.uk
The Forum is open for you to take part. Got a sharp comment on
one of todays columns? Do you have another subject you want
to share your opinion on? We want to hear your views.
Email theforum@cityam.com or comment at cityam.com/forum
Olympian defends
football stars at
least off the pitch
WEDNESDAY 22 AUGUST 2012
cityam.com
16
TV LISTINGS
T
E
R
R
E
S
T
R
I
A
SKY SPORTS 1
4.30pmLive ECB 40 League
Cricket 10pmBoots n All 11pm
FIFA Futbol Mundial 11.30pmTotal
Rugby 12amUEFA Champions
League Goals 12.30amBoots n All
1.30amFootball Special 2.30am
UEFA Champions League Goals
3amBoots n All 4amTotal Rugby
4.30amUEFA Champions League
Goals 5am-6amTrans World Sport
SKY SPORTS 2
7pmLive UEFA Champions League
10pmUEFA Champions League
Goals 10.30pmFootball Special
11.30pmFootballs Greatest
12amInside the PGA Tour
12.30am-6amLive ICC Under-19s
World Cup Cricket
SKY SPORTS 3
7pmFIBA Basketball 7.30pmTotal
Rugby 8pmBoots n All 9pmTrans
World Sport 10pmCage Rage UK
12amFIBA Basketball 12.30am
PGA EuroPro Tour Golf 2.30am
Cage Rage UK 4.30amFIBA
Basketball 4.55am-6amLive Test
Cricket
BRITISH EUROSPORT
7.10pmEquestrian 8.10pmRiders
Club 8.15pmAlexias Selection
8.25pmLadies European Tour Golf
9.15pmAlexias Selection 9.20pm
PGA Tour Golf 10.20pmEuropean
Tour Golf 10.50pmAlexias
Selection 10.55pmGolf Club 11pm
Yacht Club 11.05pmWednesday
Selection 11.20pm-12.20am
MotoGP
ESPN
7pmESPN FC Press Pass 7.30pm
ESPN Kicks: MLS 8pmESPN Kicks:
Brasileirao: Football highlights from
Brazil. 8.15pmDTM Review Show:
Round six from the Nurburgring.
9.15pmMazda Championship
Racing 10.15pmPremier League
World 10.45pmESPN Kicks: MLS
11.15pmESPN Kicks: Brasileirao
11.30pmESPN FC Press Pass
12am-6amTyson Raw and Uncut
SKY LIVING
7pmSing Date 8pmCriminal
Minds 9pmMount Pleasant 10pm
Supernatural 11pmStyled to Rock
12amMount Pleasant 1amBones
1.50amCriminal Minds 2.40am
Supernatural 3.30amMedium
4.20amBones 5.10am-6am
Americas Next Top Model
BBC THREE
7pmTop Gear 8pmGreat Movie
Mistakes 2011: Not in 3D 8.10pm
FILMRaiders of the Lost Ark 1981.
10pmRevolution Will Be Televised
10.30pmFamily Guy 11.15pm
American Dad! 12amRevolution
Will Be Televised 12.30amBad
Education 1amOur War 2amThe
Batman Shootings 2.55amRussell
Brand: From Addiction to Recovery
3.55amBad Education
4.25am-5.25amOur War
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmFILMVolcano
1997. 10pmCelebrity Bedlam
10.35pmRude Tube: Utter Pranks
11.40pmThe IT Crowd 12.10am
The Big Bang Theory 1.05am
Scrubs 1.35amDesperate
Housewives 2.30amRude Tube:
Utter Pranks 3.25amHow I Met
Your Mother 3.50amRules of
Engagement 4.10am90210
4.50am-6amGreek
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmSwamp People 11pm
Storage Wars 11.30pmPawn Stars
12amAmerican Pickers 1am
Swamp People 4amThe Last Days
of World War Two 5amPawn
Stars 5.30am-6amAmerican
Restoration
DISCOVERY
7pmBear Grylls 8pmWheeler
Dealers 9pmAmerican Chopper:
Senior Versus Junior 10pmAuction
Hunters 11pmGold Rush 12am
American Chopper: Senior Versus
Junior 1amAmerican Guns
2amAuction Kings 3amAmerican
Chopper: Senior Versus Junior
3.50amWheeler Dealers 4.40am
Bear Grylls 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmBirth Days 8pmI Didnt Know
I Was Pregnant 9pmHospital
Sydney 10pmTrauma 11pmUntold
Stories of the ER 12amHospital
Sydney 1amTrauma 2amUntold
Stories of the ER 3amDr G:
Medical Examiner 4amLabour and
Delivery 5am-6amA Baby Story
SKY1
7pmThe Simpsons 8pm
Emergency with Angela Griffin
9pmA League of Their Own 10pm
An Idiot Abroad 11pmCop Squad
12amCaribbean Cops 1amThe
Good Guys 2amSun, Sea and A&E
2.55amCaprica 3.45am
Emergency Abroad 4.35amAirline
5.05am-6amSell Me the Answer
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmHelicopter Heroes;
BBC News
8pmThe Flowerpot Gang
9pmCHOICE Who Do You
Think You Are?
10pmNews 10.25pmRegional
News 10.35pmThe National
Lottery Draws 10.45pmHave I Got
Old News for You 11.15pmFILM
Wedding Daze. 2006; National
Lottery Update 12.40am
Weatherview12.45amSign Zone:
The Tube 1.45amBritains Heritage
Heroes 2.15amReal Rescues 3am
Real Rescues 3.45am-6amNews
6pmEggheads
6.30pmCelebrity MasterChef
7pmEscape to the Country:
Denise Nurse helps a couple
find a property with a business
in Somerset.
8pmRestoration Home: A set
of disused historic farm
buildings in North Yorkshire.
Last in the series.
9pmVexed
10pmThe Culture Show at the
Edinburgh Festival
10.30pmNewsnight: Weather
11.20pmThe Midwives
12.20amBBC News
3.15am-6amClose
6pmLondon Tonight
6.30pmITV News
7pmCHOICE Emmerdale:
Robbie plots to ensure Katie
misses the festival meeting.
7.30pmThe Corrie Years
8pmMidsomer Murders
10pmITV News at Ten
10.30pmLondon News
10.35pmFILMSyriana:
Political drama, starring
George Clooney. 2005.
12.55amJackpot247; ITV
News Headlines
2.55amFILM A Clockwork
Orange. 1971. 5.10am-5.30amITV
Nightscreen
6pmThe Simpsons 6.30pm
Hollyoaks 7pmChannel 4 News
7.25pm4thought.tv 7.30pmJon
Snows Paralympic Show8pm
SuperScrimpers 9pm24 Hours in
A&E 10pmC4 Comedy Presents:
Them from That Thing 10.30pm
Fonejacker Walking the Cat
10.35pmCHOICE Im Spazticus
11.10pmSpaced 11.45pm2 Broke
Girls 12.15amNew Girl 12.45am
Music on 4: Summer Daze 1.10am
Mercury Prize Sessions: The
Vaccines 1.25amV Festival 2012:
The Best Bits 2.20amSpotlight:
Urban 2.35amFILMMean Creek.
2004. 4amSt Elsewhere 4.50am
Deal or No Deal 5.45am-6.10am
Baking Mad with Eric Lanlard
6pmMonkey Life
6.30pm5 News at 6.30
7pmThe Hotel Inspector; 5
News Update
8pmSecret Interview; 5 News
at 9
9pmCelebrity Big Brother:
Live Eviction
10.30pmCelebrity Big
Brother: Live from the House
11.30pmCelebrity Big Brothers Bit
on the Side 12.30amComedy
Kings: Best of Just for Laughs
12.55amSuperCasino 3.55am
Great Artists 4.20amHouse
Doctor 4.45amMichaelas Wild
Challenge 5.15amWildlife SOS
5.35am-6amNicks Quest
T
E
R
R
E
S
T
R
I
A
L
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
WHO DO YOU THINK YOU ARE?
BBC1, 9PM
Gregg Wallace solves a family mystery
as he discovers what happened to his
great-grandfather, who was thought
to have been a naval deserter.
EMMERDALE
ITV1, 7PM
Robbie finds out that Declan is
including Katie in the festival meeting,
and hatches a plan to ensure she
cannot attend.
IMSPAZTICUS
CHANNEL4, 10.35PM
A blind man asks a waiter to help him
gauge the attractiveness of the
woman he is dating, and a punk dwarf
interrupts people eating lunch.
TVPICK
WEDNESDAY 22 AUGUST 2012
17
GAMES
cityam.com
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6 7
8 9
10 11 12 13
14 15
16 17 18 19
20
21
22 23
8 9 4
45
7 22
30 17
23
45
38
15 10
6 23
45
14 21 13
28
6
16
17
22
12
33
7
16
5
15
15
16
4
34
17
15
14
37
26
11
16
13
ACROSS
1 Capital of Cuba (6)
4 Roman cloak (4)
6 Large, strong
animal suitable for
heavy work (9)
8 Extinct ightless bird
of New Zealand (3)
10 Boundary line (6)
13 Lacking hair (4)
14 Perfect type (5)
16 Charitable gifts (4)
17 Penetrate with a
sharp implement (6)
20 ___ Lavender,
Private Frank Pike
in Dads Army (3)
21 Disparaging
remark (9)
22 Erotic desire (4)
23 Fire-breathing
dragon used
in medieval
heraldry (6)
DOWN
1 Atomic exploding
device (1-4)
2 Parson (5)
3 Looked after during
an illness (6)
4 Problem (7)
5 Reverence (3)
7 Mineral such as
quartz (6)
9 Loads, an abundance
(coll) (6)
11 Disagree (7)
12 Fabric with
prominent rounded
crosswise ribs (3)
15 In a ippant manner (6)
18 Use water to
remove soap (5)
19 With the extremity
facing the
observer (3,2)
21 Hand tool used to
mark surfaces (3)
D
R
K
S
N E
P
I
L
4

4
B A T H C L A W S
I I N C H L C
B I A S A M A R
L I S T H M U S I
E E R I P H A M
P O R T I C O
K O I E O U L T
E S P L I N T S H
B A T E R E L Y
A O S O Y A M
B I L L S Y A L E
9 4 6 8 6 7
7 6 1 2 3 4 4 1
8 9 8 5 7 9
8 2 4 6 9 1 3
1 3 3 8 2 1 7
2 4 7 1 9 6 3 5 8
4 7 9 4 1 8 9
6 8 4 7 5 9 2
1 2 4 3 2 1
3 9 1 2 3 5 7 4
2 5 5 4 6 2
4
4
4
4
4
4
4
4
4
The nine-letter words were
AUCTIONED, CAUTIONED and
EDUCATION
T
he car market used to be so
much easier to understand.
You used to be able to make a
brand table that looked like a
ladder, with value brands at the
bottom and premium brands at the
top. As a manufacturer you either
made a lot of cars and sold them for
less profit per unit or you built
smaller numbers of more
expensive, more exclusive cars, for
wealthier individuals, on which you
made more money on each car.
The German premium brands
including BMW and Mercedes-Benz
made large cars for wealthy people.
Ford and Vauxhall made average
cars for average people. Then Japan
entered the market and sold cheap-
er cars. Then they sold cars that
were more expensive because they
were made well. Then they intro-
duced rival luxury brands Lexus and
Infiniti. Then Audi sold gazillions of
expensive premium cars at an envi-
able profit. Then Korea came along
and built and sold some of the
cheapest cars of all, cheaper cars
that didnt look great and which
werent always that great to drive.
But now the Koreans are making
really good-looking little cars with a
market-leading warranty and which
are sold at a great price. And trying
to work out who goes where in
terms of brands is getting trickier
and tricker.
So if youre in the market for a
decent car at a decent price what do
you buy? Ford, Kia, Vauxhall? What
do these brands mean to you? What
do these brands stand for? I find
that difficult to answer and Im sup-
posed to know.
Nothing is off-limits, everything is
in flux. The premium brands are
building small cars as well as large
ones; value brands are selling whop-
ping leather-lined SUVs as well as
tiny city cars. Kia is known for its
small cars, cars like Picanto and Rio,
which have been so successful in
Europe. But now its also bringing
over its large Optima saloon, which
has been super-successful in the US.
That its been such a barnstormer
over there probably wont resonate
much to us, because we know that
Americans have so little apprecia-
tion of quality that they eat Pop
Tarts. Which means wed be right to
be cynical. Seriously how can the Kia
Optima be any good? Erm... Actually,
yes, it is. Calling it class leading may
be too strong but its certainly good
enough to poach sales from some of
its competitors.
The exterior design of the Optima
is striking. It is contemporary and
quite elegant. This is something of a
wow car in the sense that I lost
count of the amount of people stop-
ping to confirm that the car they
were looking at was a Kia.
The interior quality is generally
good. Theres leather and chrome
trim and even some mood lighting.
The cockpit is driver-focused, a lot
like Saabs used to be. Its also spa-
cious and, at 505-litres, the boot is
big.
We were driving the 1.7-litre CRD
diesel-powered Optima, which is the
only option on sale. This turbo diesel
engine somehow manages to be
both powerful enough (at 134bhp)
and very frugal (64.2mpg combined).
The Optima is satisfactory rather
than exciting in terms of how it
drives as it doesnt have the most
powerful engine. But the handling is
good and the car is troubled by little
wind and road noise. At times, how-
ever, the diesel engine can sound a
little tractor-like and, foot-down, the
engine takes a beat to pick up; not
quite as refined as its overall aspira-
tions.
For people who arent shopping in
the premium car segment, the Kia
Optima is as good a car as theyll
need. The pioneering seven-year,
100,000-mile warranty means its a
safe bet as well as an attractive
proposition. If you drive one away,
you can feel extremely smug that
youre driving a good car that offers
great value for money.
The new Kia is a real looker
The car in front is a... What? A Kia?
It used to represent the bargain basement of the motoring world but in its new Optima, Kia is
blurring the lines between luxury and economy. We take it on the road to see if it lives up to the hype
18
WEDNESDAY 22 AUGUST 2012
LIFE&STYLE
cityam.com
MOTORING
CAR TALK
BY RYAN BORROFF
Want one of these? Dont hold your breath
This unusual-looking beast is a one-off supercar built by McLaren
Special Operations (MSO), the bespoke division within McLaren
Automotive. Called the McLaren X-1 it is based on the companys carbon
MonoCell structure and has a unique, bespoke timeless and
classically elegant body. It took two and a half years to build, is road
legal and was revealed at Pebble Beach, in Monterey, USA over the
weekend.
WORDS BY
RYAN BORROFF
THE VERDICT:
DESIGN hhhhi
PERFORMANCE hhhii
PRACTICALITY hhhhi
VALUE FOR MONEY hhhhi
PRICE: 19,995
0-60MPH: 10.2 secs
TOP SPEED: 125mph
CO2 G/KM: 128g/km
MPG COMBINED: 64.2mpg
Celebrate the Shelby Cobras 50th birthday
Ford has built this one-off 2013 Shelby GT500 Cobra to
commemorate the late Carroll Shelby and the 50th anniversary of
the Shelby Cobra. Powered by an 850bhp, Ford Racing
supercharged V8 it has so much traction it needs 13-inch-wide rear
wheels wrapped in 345-section high-performance tyres to grip the
road. The bodywork is finished in Guardsman Blue with Wimbledon
White stripes.
New X3 comes with rear-wheel-drive
Back in the real world, BMW is introducing the first rear-wheel-drive
only X3. The X3 sDrive18d is powered by a 143bhp, 2.0-litre diesel
engine with either a six-speed manual or eight-speed automatic
gearbox. Acceleration is 0-62mph in 9.9 seconds and top speed is
121mph. Combined fuel consumption is 55.4mpg and emissions are
just 135g/km of CO2. If you needed a reason to look twice at the X3,
this might be it.
THE FACTS:
KIA OPTIMA
CHELSEA manager Roberto Di
Matteo believes 32m summer
signing Eden Hazard has the
ability to become the
inspirational Gianfranco
Zola figure of his ambitious,
modern side.
The European champions
tonight welcome Reading to
Stamford Bridge in what is likely
to be Hazards second Premier
League start and though
conceding it is perhaps too early
to judge, Di Matteos confidence
in the Belgian is such that he
feels him capable of earning
parity with the popular Zola.
Gianfranco was a wonderful
talent an artist, I would say,
artist, said Di Matteo, who
featured in Chelsea and Italy
teams influenced strongly by
Zola. Eden might become an
artist as well. [But] after one game
its probably a bit too early to say.
Chelsea on Sunday won 2-0
away to Wigan in their first
league match of the season,
meaning that though Brazil
midfielder Ramires has recovered
from the illness that then ruled
him out, Di Matteo is likely to use
an unchanged side. German
winger Marko Marin remains
unavailable because of a
hamstring injury.
Hazard can be
the new Zola
ENGLAND coach Andy Flower has
warned out-of-favour star Kevin
Pietersen that making peace with
captain Andrew Strauss may not be
enough to earn him a recall to the
national team.
Pietersens pariah status was
underlined yesterday when he was
left out of the 15-man squad for next
months World Twenty20 in Sri
Lanka, despite being Englands most
explosive short-form batsman.
The Surrey player has been
ostracised after sending text mes-
sages, thought to disparage Strauss,
to friends in the South Africa
team who on Monday knocked
England off the top of the
Test rankings.
Pietersen has apologised for
the provocative correspon-
dence and further talks are
planned, but Flower insisted yes-
terday that Strauss was not the
only party with whom bridges
would need to be built.
Let me be clear: this is not
just an issue between the cap-
Making up with
Strauss wont
get KP a recall
tain and Kevin. There are deeper
issues, certainly of trust and mutual
respect that need to be addressed,
said Flower.
There are unresolved issues that
have reared their heads in recent
weeks, and they have to be resolved
before there is any way forward.
Andrew Strauss and I have worked
very closely and very well together
over the years, and we will continue
to do so over this issue.
Its a very sad situation for every-
one involved. He [Pietersen] played
superbly at the last Twenty20 World
Cup, but the circumstances that exist
at the moment mean he cant be
selected for us. There are still unre-
solved issues, and well be addressing
those issues when we have time.
Defeat to South Africa at Lords this
week completed a 2-0 series loss and
raised questions about Strausss
position, but Flower backed
him to resume the Test captain-
cy in the next series, a winter
tour of India.
Hes a superb leader, he
added. He can certainly
take this side on. He deserves
a little break and hes taking it
now. Hell come back feeling
refreshed, Im sure.
A
NY remaining euphoria
associated with being the
worlds top Test team seeped
away this week when
England ceded that status to South
Africa. A first home series defeat
since 2008 followed two difficult
tours and adds to the pressure on
Andrew Strauss to raise their game
again. What lies ahead, however, is
a frankly difficult build-up to next
summers Ashes, including a tricky
winter tour to India hardly a
happy previous hunting ground.
England will admit they
deserved to lose the series, and
their title, to South Africa, a
similarly talented and experienced
IN BRIEF
Care commits to Harlequins
n RUGBY UNION: England scrum-half
Danny Care has signed a three-year
contract extension with Harlequins to
keep him at the club until 2016. Im
enjoying being part of a talented
squad that plays attractive rugby,
Care said.
Lawrie pleased at Ryder return
n GOLF: Scotlands Paul Lawrie has
admitted his delight at qualifying for
the Ryder Cup.
Celtic seal European advantage
n FOOTBALL: Celtic last night beat
Swedish side Helsingborgs 2-0 away
in the first leg of their Champions
League qualifier.
CRICKET
COMMENT
ANDY LLOYD
AINSLIE TARGETS RIO 2016 TO ADD TO OLYMPICS SAILING MEDAL HAUL
Four-time Olympic gold medallist Ben Ainslie is set to compete at the 2016 Games in Rio de Janeiro, Brazil, after initially saying that
London 2012 may have been his last. Id love to be in Rio if its possible, he said. Id like to be involved in the next Games.
TOTTENHAM yesterday confirmed
the 5m signing of Emmanuel
Adebayor, the exit of Sebastien
Bassong, and are considering
a 5.5m offer from Queens
Park Rangers for defender
Michael Dawson.
Negotiations surrounding
Adebayors transfer from
Manchester City had been as
steady as those surrounding the
ongoing exit of midfielder Luka
Modric to Real Madrid, but if
there was any uncertainty over
whether to accept QPRs offer for
Michael Dawson, Spurs
willingness to sell Bassong to
Norwich for an undisclosed fee
was considerably more clear.
Adebayors exit from City
coincides with the imminent
arrival at the Premier League
champions of Swansea Citys Scott
Sinclair, and joining him in
Manchester is Dutch defender
Alexander Buttner, who has joined
United from Vitesse Arnhem for
an undisclosed fee.
Sinclair has incidentally been
targeted in preparation for the
likely exit of Adam Johnson to
either Spurs, Liverpool or
Sunderland, while QPRs Joey
Barton could yet join Marseille.
BY DECLAN WARRINGTON
BY FRANK DALLERES
Kevin Pietersen has been left
out of the World Twenty20
BY DECLAN WARRINGTON
Adebayor arrives at Spurs as
transfer window comes to life
Forget No1, England face battle to be No2
side but who performed better
throughout. Of course, England
played the decisive third and final
Test without Kevin Pietersen,
dropped over his text message
indiscretions, among other issues.
But would his presence have saved
the match, given only 51 runs split
the teams? No. The difference was
in the bowling attacks, and
Englands wasnt sharp enough.
Thats not to say the episode didnt
affect the team, however. Strauss,
and to an extent Alastair Cook,
must have been hugely distracted
by the ongoing row.
One factor in Englands decline
has been the effectiveness of
Graeme Swann, whose spin the
opposition seem to have learned
how to face better. Another thing
they lack is a batting all-rounder,
like Jacques Kallis. Perhaps Stuart
Broad could be improved and
bumped up the order.
Either way, India will pose
another stern challenge and
England could find themselves
fighting even to hold onto second
place in the rankings.
Andy Lloyd is a former England Test
cricketer who captained Warwickshire.
Results
=FFK98CC
L<=8:?8DG@FEJC<8>L<GC8P$F===@IJKC<>
?\cj`e^Yfi^j@=%%%% ' ' :\ck`Z%%%%%%%%%%%%%%%%%%%%%%%%%%%( )
8kk1()#)'' :fddfej)#JXdXiXj.,
EGFN<I:?8DG@FEJ?@G 9cXZbgffc)C\\[j(29fckfe);\iYp
'29i`^_kfe' :Xi[`]]'29i`jkfc:`kp+ :ipjkXcGXcXZ\(2:_Xickfe)
C\`Z\jk\i(2?l[[\ij]`\c[(Efkkd=fi\jk(2D`[[c\jYifl^_*
9liec\p)2G\k\iYfifl^_(D`ccnXcc)2J_\]]N\[*9`id`e^_Xd)2
NXk]fi['@gjn`Z_(2Nfcm\i_Xdgkfe*9Xiejc\p(%
EGFN<IC<8>L<FE< 9flie\dflk_( D`ckfeB\pe\j;fej(2
9i\ek]fi[ ( P\fm`c*2:Xic`jc\' KiXed\i\*2:fcZ_\jk\i)
Gfikjdflk_)2:fm\ekip(J_\]]Lk[ (2;feZXjk\i)9lip(2C\pkfe
Fi`\ek ' Jk\m\eX^\(2Efkkj:flekp)?Xikc\gffc'2Fc[_Xd(
NXcjXcc(2JZlek_fig\( :i\n\)2J_i\njYlip( Gi\jkfe'2Jn`e[fe
* :iXnc\pKfne'%
EGFN<IC<8>L<KNF8ZZi`e^kfeJkXec\p)Gfik MXc\'2
8c[\ij_fk ( <o\k\i)29Xie\k ( 9i`jkfcIfm\ij(29iX[]fi[ (
=c\\knff[Kfne'29likfe8cY`fe-8=:N`dYc\[fe)2
:_\jk\i]`\c[ ( IfZ_[Xc\ (2 ;X^ I\[ ' Gcpdflk_ '2 Dfi\ZXdY\ )
Pfib)2Efik_Xdgkfe)Ifk_\i_Xd(2Fo]fi[ Lk[ )Jflk_\e[ '2
KfihlXp):_\ck\e_Xd)2NpZfdY\' >`cc`e^_Xd(%
KF;8PJ;@8IP
9XiZcXpjGi\d`\iC\X^l\
:_\cj\X m I\X[`e^%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
egfn\i:_Xdg`fej_`g
9cXZbYliem ?lcc%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
WEDNESDAY 22 AUGUST 2012
19
SPORT
cityam.com/sport @cityam_sport
Britains Chris Froome is
second in Vuelta a Espana
after stage four