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Nick Clegg is again at odds with George Osborne over the deficit, pushing for more taxes instead of spending cuts to plug the huge gap in public finances
A WEALTH tax would hurt economic
growth, drive firms away from Britain
and fail to raise anywhere near
enough money to solve the govern-
ments financial problems, an array of
City leaders argued yesterday, attack-
ing Nick Cleggs proposals as the poli-
tics of envy.
Chancellor George Osborne also dis-
missed the deputy Prime Ministers
attempt to revive the Liberal
Democrats favoured mansion tax,
arguing that a heavy-handed approach
could drive away the wealth creators.
Clegg is planning to push his coali-
tion partners hard to raise taxes on the
rich instead of trimming government
spending, in the hope that new levies
will be announced in the budget.
But City brokerage Tullett Prebon
rejected the plan as a petulant ges-
ture ahead of the party conference.
The main problems with wealth
taxes are that they raise little for the
Treasury, and they send a message
that Britain is hostile to success, said
Tullett Prebons Tim Morgan.
And that message could easily drive
mobile global firms away from the UK,
according to lawyers Wedlake Bell.
There is likely to be another exodus
of wealthy individuals if Nick Clegg
manages to introduce a wealth tax,
said partner Camilla Wallace.
Any introduction could also undo
benefits from the recent reduction in
corporation tax.
Accountancy firm RSM Tenon added
that the tax would be extremely com-
plicated in practice.
A wealth tax is a very ill defined con-
FTSE 100 M5,743.53 -32.18 DOW 13,107.48 +4.49 NASDAQ 3,081.19 +4.05 /$ 1.58 unc / 1.26 unc /$ M1.25 -0.01
BY TIM WALLACE
THE FORUM: Page 18

MARC SIDWELL: Page 2

Certified Distribution
02/07/12 til 29/07/12 is 131,194
cept and its impact can be arbitrary
and lack consistency and ultimately
fairness. It poses many significant
challenges in design and collection
and will impose a significant cost to
government in administration and
design, said head of tax Paul Belsman.
The deputy Prime Minister also told
the Guardian we need to do more to
probably bypass the broken banking
system altogether maybe looking at
establishing a business lending bank
with direct or indirect support from
the government.
Liberal Democrat sources told City
A.M. that the party is looking at all
the options to get credit flowing and
the economy moving and that
could even mean converting one of
the state-owned banks RBS and Lloyds
into a national investment bank.
However Osborne is not thought to
favour such a move, preferring the cur-
rent plan of running the banks as com-
mercial entities before privatising
them in the coming years.
BUSINESS WITH PERSONALITY
www.cityam.com FREE ISSUE 1,706 THURSDAY 30 AUGUST 2012
CITYSLAMSWEALTHTAX
PREPARE TO BE INSPIRED AND DAZZLED
Paralympic
Games coverage:
Page 2, Page 15
and Page 24
Premiers lock horns over
ESM bank license legality
GERMAN chancellor Angela Merkel
clashed with Italian premier Mario
Monti at a meeting in Berlin yester-
day, disagreeing whether the
European Stability Mechanism (ESM)
could be given a banking license.
Merkel argued that current treaties
forbade giving the ESM extended
bond-buying powers, but Monti
argued that difficult times called for
a more flexible approach.
However, leaders showed more
unity on Italian reform, which
Merkel described as impressive
and wide-ranging.
European Central Bank president
Mario Draghi agreed with his compa-
triot on the necessity of special inter-
vention, saying that fragmented
markets sometimes justified excep-
tional measures.
It should be understood that ful-
filling our mandate sometimes
requires us to go beyond standard
monetary policy tools, he wrote in
German daily die Zeit.
But French Prime Minister Jean-
Marc Ayrault appeared to side with
Germany, saying yesterday that Paris
was as determined as Berlin to press
for stronger economic governance in
the Eurozone.
Nevertheless, Greek politicians
were still unable to thrash out the
specifics of the 11.5bn cuts package
Google Plus adds new features
Google is expanding its social networking
service further into the corporate world to
take on the likes of Microsofts Yammer
and Salesforce.coms Chatter. The search
company launched Google Plus in June
last year but did not originally allow
business customers of its Google Apps
products, such as Gmail or Docs, to join
the service.
Hedge funds hope SEC will ease rules
Hedge funds and other private
investment companies moved one step
closer to gaining permission to publicly
solicit and advertise for business, under a
rule change proposed by US regulators
yesterday. The Securities and Exchange
Commission in a 4-1 vote said it
would begin a consultation period on a
proposal that would end a more than
three-decade long ban on public
marketing by certain securities issuers,
including hedge funds.
BT set to reduce stake in Mahindra
BT is preparing to sell the majority of its
23 per cent stake in Tech Mahindra as part
of a long-term plan to reduce its stake in
the Indian software and IT services group.
No figures for Archant after sacking
Archant has failed to publish circulation
figures for 14 of its regional newspapers a
week after the publishers Anglia
circulation director was dismissed for
alleged irregularities in the figures.
RBS to leave insurance scheme
Royal Bank of Scotland is just weeks away
from a symbolic exit from a key
government insurance scheme, with the
Treasury agency that runs it telling staff
that they will soon not have jobs.
Flipboard reaches 20m users
Flipboard, the popular social media
magazine iPad app, has reached 20m
users as it celebrates is second birthday.
The San Francisco-based start up has
released an infographic to celebrate its
birthday which shows that the app is
adding one new user per second.
Industrialist to sell 67.5m yacht
French industrialist Martin Bouygues has
put his luxury yacht up for sale for 67.5m,
slightly more than he paid two years ago.
Ex-Motorola engineer sentenced
A former software engineer for Motorola
Solutions was sentenced to four years in
prison for stealing Motorola trade secrets,
the Department of Justice said.
Mine equipment firm digs in
China's slowing economy is holding down
global demand for commodities,
discouraging mine operators from buying
additional equipment or expanding
production, Joy Global said in lowering its
2012 outlook.
MORE MPs have waded into the
row over Heathrows future,
warning in a report yesterday that
unless the coalition takes
immediate action to expand
Britains air capacity, the country
will miss out on potential growth.
The all-party parliamentary
aviation group adds to pressure on
transport secretary Justine
Greening, who has spent the week
insisting that Heathrow will not
expand during the current
parliament.
The group of MPs led by
Labours Brian Donohoe said in
the report: All efforts should be
made to ensure the UK retains and
grows hub capacity, whether that
entails further capacity at
Heathrow, or a new purpose-built
hub airport.
They added that while the
government works out a long-term
plan for air expansion, it should
make better use of Heathrows
runways and consider using RAF
Northolt for domestic flights.
The group heard evidence from
60 groups and received help from
campaign group A Fair Tax on
Flying before writing the report.
They criticised air passenger
duty, a lucrative tax for the
Exchequer but much-maligned by
airlines, saying it discouraged
tourists from visiting the UK.
MPs urge fast
action to beef
up air capacity
Chancellor Angela Merkel disagreed with her Italian counterpart on bond-buying
2
NEWS
BY MARION DAKERS
BY BEN SOUTHWOOD
To contact the newsdesk email news@cityam.com
L
IKE a sudden downpour, Nick
Clegg has signalled an end to the
summers drought of domestic
policy proposals with his
suggestion for an additional wealth
tax. The deputy Prime Ministers new
idea has, rightly, been widely
criticised for being both impractical
and counterproductive, with even the
chancellor George Osborne forced to
warn of its potential impact on the
UKs attractiveness to wealth-creators.
In the Forum today on page 18, Mark
Littlewood, once head of media for
the Liberal Democrats, explains the
sort of practical message Clegg could
have been delivering instead.
As it was, Clegg used his Guardian
interview to roll out the usual delu-
sional thinking. A tax that could be
time-limited. They told us that
about the income tax at the time of
the Napoleonic Wars, and were still
A wealth tax wont work except as political pantomime
THURSDAY 30 AUGUST 2012
waiting for our reprieve. A tax that
could somehow help hardwire fair-
ness into the system by targeting one
small group. A tax that could be part
of a long economic effort to restore
growth, while taking the form of a
short-term raid on private assets.
Wealth taxes are divisive, notorious-
ly hard to assess and disproportion-
ately hurt the asset-rich and
income-poor plenty of whom simply
have the good fortune to own proper-
ty in and around London. But perhaps
such analysis is beside the point.
Clegg may not have been floating a
serious idea so much as throwing a
bone to his party ahead of conference
season. Its hard to say which is more
depressing, the thought that the
deputy Prime Minister might play pol-
itics with such significant announce-
ments or that he might believe such
an unworkable proposal would rally
his party.
As the country shakes off its long
summer doze, Cleggs promise that
the Lib Dems are ready to spread their
wings signals that we cant expect to
hear anytime soon the urgent
answers we need from the govern-
ment on matters from economic
strategy to transport policy. With a
Cabinet reshuffle predicted to be
imminent and conferences for all
three main parties barely a month
away, politics is back with a
inventive, spirited best. Given the
Greek origins of this summers com-
petitions, the words of Sophocles
seem appropriate: Shared words,
ideas fast as the wind, emotions that
build a state, humankind has taught
itself these; how to build against win-
ter ice and to keep off the rain; we are
ready for anything: being human,
whatever our fate, we will find an
answer. Theres no running from
death, but humans find ways to out-
pace their cruellest afflictions.
As our Paralympic athletes, includ-
ing some of todays veteran service-
men and women, compete with the
best in the world, they also help to
remind us of the unconquerable
resourcefulness of the human spirit.
vengeance, which means it may be
time for reason to take a holiday.
POETRY IN MOTION
For the next week and a half, the rest
of us can distract ourselves with the
return of London 2012. Britain can be
proud, not just that the forerunner of
the modern Olympics was created at
Much Wenlock, but that the modern
Paralympics began at Stoke
Mandeville hospital.
Dr Ludwig Guttmans work, cele-
brated in the recent BBC Two drama
The Best of Men, helped rehabilitate
World War II veterans in 1948, and
todays global sporting championship
is also a giant celebration of achieve-
ment in the face of adversity. It was
fitting that the opening ceremony
also chose to mark Britains contribu-
tion to scientific knowledge. This is
an event that shows humans at their
that is a condition for further aid.
Whatever her reception abroad,
Merkels popularity is booming in
Germany, where she is enjoying her
best polling results for four years.
Her Christian Democratic Union,
and its Bavarian sister party, the
Christian Social Union, are polling at
39 per cent, compared to just 26 per
cent for main rivals the Social
Democratic Party.
But gloomy economic results contin-
ued to come in across Europe. Outside
the Eurozone, but heavily dependent
on EU trade, Denmark saw its econo-
my shrink by 0.5 per cent in the second
quarter. Italian retail sales remained
0.5 per cent lower than a year earlier,
though they ticked up slightly on the
month. And inflation edged up to two
per cent in Germany, compared to 1.7
per cent in July, driven by dearer fuel.
Markets showed little response:
Germanys DAX was up 0.1 per cent,
Frances CAC was down 0.5 per cent,
Spains IBEX fell 0.4 per cent and the
FTSE 100 slipped 0.6 per cent.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
EDITORS
LETTER
MARC SIDWELL
marc.sidwell@cityam.com
follow me on twitter: @marcsidwell
nAllister Heath is away
LATVIAN police yesterday said that
DNA tests carried out on a dead
body discovered earlier this month
confirm it is likely to be that of
Leonid Rozhetskin, a shareholder
and board member of City A.M.,
who has been missing since 2008.
A police spokesperson said the
DNA profile of the corpse found in
a remote Latvian forest matched
those taken from Rozhetskins
blood-stained holiday villa, where
he was last seen four years ago.
They will now try to match samples
against members of his family.
Police identify
body in Latvia
BY KASMIRA JEFFORD
FOLLOWING the fall-out of Apples
$1bn victory over Samsung in the
courts last Friday, US Judge Lucy Koh
yesterday announced the hearing,
which could see eight phones
removed from the shelves, will take
place on 6 December.
News of the delayed injunction,
which was originally pencilled in
for next month, led Samsung shares
to rise three per cent.
The court date came as the firm
unveiled its latest smartphone, the
Galaxy Note II.
Samsung court
date is delayed
BY KATIE HOPE
MORE: Page 5

THE FORUM: Page 19

NEW GALAXY REVIEWED: Page 20

THE US economy is slowly but steadily
recovering, a tranche of releases from
official bodies and industry groups
said yesterday.
Retail and car sales were driving a
gradually growing economy, the
Federal Reserve said in its Beige Book
report of anecdotal evidence, but they
also warned of a slowdown in manu-
facturing expansion.
And the US grew at an annual rate of
1.7 per cent in the second quarter,
revised estimates from the Commerce
Department showed, up from their
initial 1.5 per cent estimate.
Adding to this positive picture was a
two-year high in pending home sales,
recorded in July by the National associ-
ation of Realtors.
But analysts do not think this rules
out any announcement of Fed action
over the weekends meeting of central
bankers in Jackson Hole, Wyoming.
I dont think this really changes the
dovish sentiment of the Fed, said
Michael Hanson at Bank of America
Merrill Lynch.
Policymakers are worried about the
effects of the ongoing debt crisis, the
2013 so called fiscal cliff of tax hikes
and spending cuts, and subdued job
growth.
They are going to look at this and
say 1.7 per cent is below trend, thats
not where we want to be and the risks
going forward are still material,
Hanson added.
US economy in
slow recovery,
report reveals
BY BEN SOUTHWOOD
THE SERIOUS Fraud Office (SFO) is
investigating payments between
Qatar and Barclays, the bank con-
firmed yesterday.
Barclays said it is complying with
the fraud squads probe, which is in
its early stages.
The SFO investigation is separate to
the Financial Services Authoritys
(FSA) inquiry that began in July, which
relates to fees paid to the
Qatar Investment
Authority on deals in
June and November
2008, when Barclays
raised 11.5bn.
The SFO probe dif-
fers as it is examining
the bank, rather than
the bank plus four
individuals.
Q a t a r
Barclays faces
SFO probe over
Qatar payments
BY TIM WALLACE
Holding, the entity involved in the
investigation, is a unit of the Qatar
Investment Authority, which is the
largest shareholder in Barclays with a
6.65 per cent stake.
Meanwhile Barclays announced it
has appointed former Deloitte partner
Russell Collins as deputy to Anthony
Salz in reviewing the culture at the
bank.
Established in the wake of the Libor
scandal, Salz has wide-ranging powers
to speak with staff and review evi-
dence, enabling him to write a new
code of conduct for staff before the
next annual general meeting in
April.
They will be assisted by profes-
sional services firm the Boston
Consulting Group, who advise on
practices and strategy.
Barclays deputy chairman Sir
Michael Rake said the new appoint-
ments are proof that the bank is
ensuring that the review is undertak-
en with independent leadership,
expertise and resources.
Sir Michael Rake welcomed
the new appointments
THE EUROPEAN Commission has
put the brakes on Ryanairs latest
takeover bid for Aer Lingus by
opening an in-depth competition
probe.
The investigation means
Ryanairs 694m (549.5m) offer
for its Irish rival lapses, though
the airline said it plans to make a
new bid for Aer Lingus if it gets
clearance from Brussels.
The Commission, which now has
until 14 January to investigate the
offer, said yesterday it has
concerns that on Irish routes, the
barriers to entry appear to be
BY MARION DAKERS high. Many of these routes are
currently only served by the two
airlines.
It added that the overlap
between the two firms operations
has increased since 2007, when the
European authorities blocked a
previous bid by Ryanair.
But Ryanair has argued that the
aviation industry has changed
dramatically since its earlier bids,
as shown by Europes green light
for IAGs acquisition of BMI
earlier this year.
A UK Competition Commission
probe into Ryanairs existing 30
per cent stake in Aer Lingus is
ongoing.
3
NEWS
cityam.com
Michael OLearys plans to take over the Irish airline face regulatory hurdles
Ryanair bid for Aer Lingus stalls
as Europe opens antitrust probe
SPAIN is not negotiating further
austerity measures with Brussels as
part of talks over possible European
Central Bank (ECB) intervention to
bring down the struggling states
borrowing costs, its economy minis-
ter said yesterday.
Luis de Guindos also insisted that
Spanish and EU authorities are in
agreement over plans for a bad
bank to hold toxic real estate assets,
as they try to prevent the coun-
trys banking and housing
crises from worsening.
There has not been any dis-
agreement with Brussels, de
Guindos said.
Spain must set up the new
vehicle to cleanse the sec-
tor of soured loans
and repossessed
real estate that
have built up since
a decade-long
property bubble
burst four years
Spain promises
plan for a bad
bank is on track
BY HARRY BANKS
ago.
The government will approve its
regulatory framework on Friday, de
Guindos told reporters.
Establishing the bad bank is one of
the conditions attached to up to
100bn (79bn) in European aid for
the financial sector that Spain was
granted in June.
A technical mission from the troi-
ka of lenders the European
Commission, ECB, and the
International Monetary Fund met
officials from the Bank of Spain
and the economy ministry in
Madrid last Friday to discuss
the bad banks creation.
Another Spanish region
Valencia will need 3.5bn
from the central states rescue
fund to get through this
year, reports from
Bloomberg also
suggested yester-
day.
C a t a l o n i a
recently admit-
ted that it need-
ed 5bn from
the central
fund.
Luis de Guindos says
Spain and the EU
are in agreement
TROUBLED Spanish lender
Bankia is set to report enormous
losses in the first half of the year,
analysts warned yesterday ahead
of its financial results, due to be
released on Friday.
It was nationalised in May
after asking for 19bn (15bn) of
state aid, when it was revealed
the bank had lost 2.98bn in
2011 rather than the 300m
profit initially reported.
At the time the new boss Jose
Ignacio Goirigolzarri said Bankia
needed to come up with 14bn
this year to cover losses.
But plummeting house prices
and rising unemployment are set
Bankia losses set to spiral as
housing market falls further
BY TIM WALLACE
to make that picture even worse,
as more debts turn bad.
Losses could be even higher in
the first half of 2012 than for the
whole of 2011 when they had to
restate their figures, said
analyst Nuria Alvarez from
brokerage Renta Four.
If they stick to the same
criteria they used when they
presented their recapitalisation
plan losses will be huge due to
high provisionings to clean up its
credit portfolio.
Those losses are expected to
come in at roughly 4bn for the
first six months of the year
worse than the losses for the
whole of 2011 as the countrys
recession worsens further.
5
NEWS
cityam.com
Greek politicians near austerity
agreement to appease lenders
GREEK political leaders are close
to thrashing out an austerity
package as demanded by the
countrys lenders, but have yet to
decide on how to soften its impact
on low-wage earners and
pensioners, government officials
and party leaders said yesterday.
Greece is under pressure to
drum up the nearly 12bn
(9.5bn) in cuts for the next two
years to appease its lenders, the
European Union and the
International Monetary Fund,
BY CITY A.M. REPORTER
who have put the latest tranche of
aid to avert a Greek bankruptcy on
hold.
The austerity package will be
ready next week to be presented to
the troika of inspectors from the
EU, the IMF and the European
Central Bank, Greeces finance
minister Yannis Stournaras said
There is political agreement on
the package, Stournaras said after
leaders of the three parties in
Greeces ruling coalition huddled
together to discuss the plan. The
package will be sealed next week
and presented to the troika.
Fotis Kouvelis, leader of the
moderate Democratic Left party
that campaigned on an anti-
bailout but pro-euro platform, said
he would reject any wholesale cuts
to wages and pensions and that
poor Greeks on already low
salaries must be protected.
More than 1,000 government
employees took to the streets
yesterday in protests over spending
cuts for local authorities.
Meanwhile, the government said
a small state-controlled lender,
Hellenic Postbank, is no longer
viable.
HOLLANDE FAST-TRACKS JOBS SUBSIDY PLAN
FRANCOIS
Hollandes
Socialist
government is
expediting the
launch of its plan
to subsidise
150,000 jobs for
poorly-qualified
youths in city
suburbs and rural
areas. The
scheme, which is
budgeted for
around 2bn, is
intended to tackle
rampant youth
unemployment
and shore up
approval ratings,
which have
slipped recently.
OIL giant Gazprom is to shelve its
development of the Shtokman
natural gas field in the Arctic Sea
due to excessive costs.
Total and Statoil, which are the
Russian companys partners in the
project, are understood to have
agreed with the decision that costs
cannot overrun.
Shtokman, which is Gazproms
flagship project, is one of the worlds
largest natural gas fields and
contains nearly four trillion cubic
metres of gas.
Vsevolod Cherepanov, head of
Gazproms production department,
said yesterday: All parties have come
to the conclusion that the financing
is too high to be able to do it for the
time being.
He added: We are collecting new
data. We have extensive gas
resources. We shouldnt take hasty
decisions.
Gazprom has a 51 per cent stake in
the gas field, Total has 25 per cent
and Statoil owns 24 per cent.
Development plans for Shtokman,
located 340 miles offshore in the
Russian sector of the Barents Sea,
have been complicated by the
discovery of shale gas in the US,
which was previously seen as a huge
export market for Russia.
It is thought that talks are still
underway as to the future of the
natural gas field.
Gazprom ices
Shtokman gas
field project
BY CATHY ADAMS
Firstgroup PLC
22Aug 23Aug 24Aug 28Aug 29Aug
250
246
248
242
240
244
p
245.00
29Aug
SWEDISH clothing giant H&M said
yesterday it will make its first
foray into South America by
opening a store in Chile, as it
continues its rapid expansion into
new markets.
The worlds second largest
clothing chain plans to open a
flagship store in the first half of
2013 in the shopping centre
Costanera Centre in Santiago de
Chile.
It is our first step into the
southern hemisphere, and we see
great potential for further
expansion in this fashion
H&M to step up expansion with
its first store in South America
BY KASMIRA JEFFORD conscious region, chief executive
Karl-Johan Persson, said.
In January, the company pledged
to continue its aggressive
expansion into new markets, with
plans to open 275 stores, with
most of these in markets where it
is already present.
It is also launching in five new
countries including Bulgaria,
Mexico, Latvia, Malaysia and
Thailand.
H&M, which has about 2,600
shops in 44 countries, posted an 11
per cent rise in total sales in July,
as it continued to enjoy robust
demand for cheap fashion from
cash-strapped shoppers.
6
NEWS
cityam.com
H&M has been thriving as cash-strapped shoppers hunt for bargains
POLITICIANS are pushing to meet with
rail operator FirstGroup to discuss con-
cerns about the expected handover of
the West Coast Main Line.
As the Department for Transports
(DfT) lawyers pore over the court pro-
ceedings filed this week by losing bid-
der Virgin, MPs based near the West
Coast route have been inundated by
questions from constituents, which
they now hope to put to Firsts man-
agement.
David Morris, the Conservative MP
for Morecambe and Lunesdale, and
Tim Farron, the Lib Dem MP for
Westmorland and Lonsdale, are
among those worried about the han-
dover.
A growing number of MPs have also
told City A.M. they want to see a fresh
debate on the rail franchise.
The Labour Party has already called
on the transport secretary Justine
Greening to allow a parliamentary
debate on the matter, though the DfT
reiterated its hope yesterday that the
contract awarding the 13-year fran-
chise to First will be signed soon.
A public e-petition calling for a
MPs push for
answers over
West Coast rail
BY MARION DAKERS
rethink has now reached 163,000 sig-
natures, and an MP must now formal-
ly table it to the backbench business
committee before they can consider it
for time in the Commons or in a
Westminster Hall debate.
Despite a standstill at the DfT, several
backbenchers have said they would
come forward to support the debate if
the ongoing judicial review process
allows. The next meeting of the com-
mittee is scheduled for Tuesday.
But not everyone is concerned about
Firsts victory Shrewsbury MP Daniel
Kawczynski said in an open letter to
Sir Richard Branson yesterday that his
ongoing fight over the route smacks
of sour grapes.
INVESTMENT bank Jefferies is set to
cut a number of equity research
roles in London in an effort to
reduce costs, it is understood.
The move will see some junior
staff face redundancy across a
handful of research sectors, it is
thought.
A number of roles in sales are also
understood to be under review.
The firm, which has its European
headquarters in London, has around
230 analysts throughout the world.
In June, it revealed a drop in
profits on the back of weak equity
trading volumes and lower earnings
from its underwriting business.
Its investment banking revenue
also fell 9.5 per cent to $297m
(187m). Jefferies is the latest in a
succession of investment banks
shedding staff in London following
cost reviews.
At the start of this month, it was
revealed Deutsche Bank was plotting
to cut 1,500 job in its investment
banking arm, mostly based in
London. JP Morgan Chase was also
said to have cut jobs in May.
Jefferies declined to comment.
Jefferies cuts
research staff
to trim costs
BY MICHAEL BOW
SHAREHOLDER body Pirc yesterday
came out against Xstratas merger
with commodities giant Glencore,
adding to pressure exerted by Norway
as it upped its stake in the mining
group.
Pirc said investors should vote down
the deal, due to concerns over trans-
parency and governance. Xstrata
shareholders will vote on the merger
on 7 September.
Meanwhile the Norwegian sover-
eign wealth fund yesterday spent
$90m (56.8m) on Xstrata shares,
which raised its holding to 3.01 per
cent.
Norges Bank Investment
Management (NBIM), which manages
the sovereign wealth fund, is the
fourth-largest shareholder in Xstrata.
BY CATHY ADAMS
Since the middle of June, NBIMs
holding has risen from 1.71 per cent.
Matthew Nelson at Spreadex said
yesterday it looked increasingly like-
ly that the merger wont happen.
Glencore chief executive Ivan
Glasenberg said last week that the
mega-merger was not a must-do
deal.
NBIM declined to comment.
Glencore boss Ivan Glasenberg said the Xstrata merger was not a must-do deal
T
HE Qataris have had their say,
several times over. Now the
Norwegians are baring their
teeth.
With less than two weeks to go
until the crunch vote and after
yesterdays drop, Glencores shares
are already trading at just 2.5 times
the value of those of its target well
below the 2.8 times ratio that the
original bid offered.
Qatar Holdings 11.6 per cent
stake is almost enough for it to
block the deal on its own. Because
Glencore owns 34 per cent of
Xstrata and is excluded from voting,
just 16.5 per cent of shareholder
votes against the deal will block it.
With Norway and Pirc also now
placing themselves in opposition,
Glencore shareholders should be
relieved Glasenberg isnt holding
out for success.
BOTTOM
LINE
ELIZABETH FOURNIER
Glencore International PLC
385
375
380
365
370
355
360
p
368.50
29Aug
7
NEWS
cityam.com
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ING secures 2bn Canada bank
sale as plots Hong Kong sell-off
CANADAS Bank of Nova Scotia
last night agreed to buy ING
Groeps Canadian online bank for
C$3.1bn (2bn) taking advantage
of a rare opportunity to grab
market share in the countrys
crowded retail banking space.
Amsterdam-based ING put the
unit up for sale earlier this
month as part of a series of
planned asset divestments to
raise funds to repay a Dutch
government bailout from the
2008 financial crisis.
Scotiabank will pay cash for
the Canadian unit and said it will
issue 29m shares at C$52 each for
total proceeds of C$1.5bn to help
fund the deal.
The deal came as analysts
yesterday welcomed reports that
ING is to sell its Hong Kong
insurance business separately
from the other units in the
region, arguing that the smaller
sell-offs should raise more cash
than one large transaction.
The bank told investors at the
end of the second quarter that
the divestment of the overall
group could take part in several
stages, and it emerged yesterday
Hong Kong is one of those parts.
The overall Asian group is
believed to be worth roughly
$7bn (4.2bn), but the bank has
BY TIM WALLACE failed to find a single buyer.
Individually the Hong Kong unit is
expected to fetch $1bn.
ING also plans to list its European
and US insurance units on stock
markets as part of its restructuring.
ING Groep
6.10
5.90
6.00
5.70
5.80
5.76
29Aug
IN BRIEF
Casino sale nets Permira $750m
nEuropean private equity firm
Permira yesterday raised $750m
(474m) by selling around half of its
stake in Macau casino operator Galaxy
Entertainment Group, sources said.
The widely expected deal was
Permiras second sale of Galaxy shares
in less than a year. It takes Permira's
total gains to more than 60 per cent
on its original investment in Galaxy in
2007.
Shawcross in line for charity post
nWilliam Shawcross, the Queens
official biographer, former journalist
and humanitarian, has been named as
the preferred candidate to succeed
Dame Suzi Leather as boss of the
Charity Commission, the Cabinet Office
announced yesterday. His candidacy
will be assessed on 5 September by
the Public Administration Select
Committee, who will consider his
suitability for the three-year post.
Sovereign wealth funds holding
the keys to a successful merger
Investor body
and Norway
lean on Xstrata
THE FINANCIAL Services Authority
yesterday ramped up its probe into
wealth management firms by
announcing a second investigation
into the investment practices of
more firms.
The review, which will fall under
the auspices of the newly created
Financial Conduct Authority when
it comes to report next year, follows
an initial investigation in June 2011
into the way portfolios were man-
aged for retail clients.
The new probe will build on the
original study, which identified sig-
nificant, widespread failings in
the wealth management
industry.
The FSA said it would
examine whether
firms had heeded the
warnings it sent last
year when it wrote
to wealth manage-
Regulator plans
second wealth
manager probe
BY MICHAEL BOW
ment company chief executives
telling them to root out bad practice
in executing client mandates.
Details of the firms involved in the
new sample are confidential but it is
understood the FSA is looking at a
smaller number of larger-sized
wealth managers in this new round
of work. The original study
involved a sample of 16
firms in total.
The FSA said the work
will involve the direct
assessment of firms sys-
tems and controls to make
sure clients were invested in
the correct assets.
The results are set
to be pub-
lished early
next year.
The new
FCA is set to
be led by cur-
rent FSA
ma na gi ng
d i r e c t o r
M a r t i n
Wheatley.
Citi agrees to pay more than
$500m over toxic asset claims
CITIGROUP has reached a $590m
(372.5m) settlement over litigation
accusing the bank of fraudulently
concealing tens of billions of dollars
of exposure to risky collateralised
debt obligations (CDO) heading into
the global financial meltdown, the
banking giant announced yesterday.
The settlement is one of the
largest arising from the financial
crisis. It resolves claims that
Citigroup failed to take timely
writedowns on the CDOs, many of
which were backed by subprime
BY HARRY BANKS
mortgages, and that shareholders
suffered billions of dollars of losses
once the risks were realised.
Citigroup in a statement called
the accord a significant step
toward resolving our exposure to
claims arising from the period of
the financial crisis. It said the
$590m is covered by existing
litigation reserves.
However the bank continues to
deny the allegations, explaining it
is entering into this settlement
solely to eliminate the
uncertainties, burden and expense
of further protracted litigation.
The settlement covers Citigroup
shareholders from 26 February 2007
to 18 April 2008, according to
papers filed in the Manhattan
federal court.
Although plaintiffs believe that
the defendants knowingly or
recklessly misrepresented
Citigroups CDO exposure and
valuation, defendants have raised a
host of factual and legal challenges,
increasing the uncertainty of a
favourable outcome absent
settlement, lawyers for the
shareholders said in settlement
papers.
The FSA is led by
Martin Wheatley
8
NEWS
cityam.com
ASSET managers yesterday called
for the government to beef up
banking reform plans and
consider splitting retail and
investment banking operations
completely.
Trade body the Investment
Management Association told a
parliamentary commission into
banking that the recent scandal
over product mis-selling had
raised questions over whether
ringfencing went far enough.
It also called on ministers not
to cherry pick on reform
recommendations from an
independent commission into
banking from Sir John Vickers
last year.
Fund lobby group wants retail
and investment banks to split
BY MICHAEL BOW
The IMA said the government
should adopt Vickers proposals
to stop ringfenced retail banks
from selling derivatives after the
mis-selling of interest rate swaps
and insurance protection.
IMA chief executive Richard
Saunders said yesterday:
Questions need to be asked
about the universal banking
model under which banks not
only transact with their
customers but also purport to
offer advice and guidance.
There is an inherent conflict
of interest between the two if
you are holding yourself out as
offering a service while in reality
treating your customer as an
equal party to a transaction.
JOHNSON STEPS UP TO INHERIT FIDELITY CROWN
ABIGAIL Johnson,
scion of fund
management
business Fidelity
Investments,
yesterday became
one of the most
powerful women in
finance after being
made president of
Fidelity Financial
Services. The firm,
founded by her
grandfather, is
currently headed
by her father,
Edward Johnson.
Abigail Johnson is
widely tipped to
succeed her father
to one day lead the
firm.
COMPLIANCE costs are set to explode
under the UKs incoming regulatory
regime, which is planned to come
into action in early-to-mid 2013,
according to a survey by consultant
Protiviti.
Half of those polled all senior
compliance professionals at
financial services firms said that
their employers costs of fulfilling
regulators demands would rise by up
to 20 per cent. More than one in 10
thought they would rise even more.
Sixty-two per cent said the move
made the UK a less attractive place to
do business.
Cost to comply
set for big rise
BY BEN SOUTHWOOD
THE NUMBER of British households
in which no adult is working has fall-
en to its lowest level since the credit
crunch struck in 2007, figures from
the Office for National Statistics
(ONS) revealed yesterday.
From April to June the ONS count-
ed 3.67m households with one or
more person between the age of 16
and 64 where no one was currently
working. This is down from 3.83m at
the same time last year, but still rep-
resents a worrying 17.9 per cent of all
households.
Even excluding fully retired and
student households, the number of
entirely workless abodes stands at a
considerable 2.92m.
Yet Chris Grayling, the coalition
governments minister for employ-
ment, said the data is moving in the
right direction.
These are encouraging figures:
our welfare reforms are helping
more people to enter the workplace
and more children are living in a
household that works, Grayling
said.
Yesterdays figures show that 1.8m
Drop in number
of homes with
jobless adults
BY JULIAN HARRIS
children live in households in which
no adult has a job, although infants
of single parents are included in the
figure. In 2012 around 59 per cent of
lone parent households with their
youngest child aged 0 to 4 were work-
less, the survey said.
We cant be complacent, Grayling
added. The economy remains a sub-
stantial challenge, which is why we
need the right employment support
to ensure that those living in work-
less households and their children
are given the opportunities and help
to succeed.
Around three in every ten workless
people attribute their situation to
sickness.
2
0
0
8
/
0
9
r
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s
s
io
n
Thefractionof workless households drops after recessionspike
1996 2000 2004 2008 2012
4,100
2,000 12.5
22.0
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o
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LONDON proved yet again to be the
driving force behind a continued
house price recovery in July, Land
Registry data showed yesterday.
With prices up 2.7 per cent in
July, the London market was
behind the overall 0.8 per cent
increase seen across England and
Wales. Downward pressure came
from slipping prices in the north
west, south west, Yorkshire and
especially the north east, where
prices fell 2.1 per cent.
This left the average London
house price at 367,785, the report
showed, compared to an average of
London housing market booms
driving average prices upwards
BY BEN SOUTHWOOD just 162,900 for England and
Wales as a whole. The region with
the cheapest houses was the north
east, where the average dwelling
costs only 98,557.
Analysts were pleased with the
slight uptick, but wary about
future prospects. The Land
Registry data is less gloomy than
some of the other housing indices
and yet the housing market in
parts of the country really is
suffering, said Mark Harris, boss
of broker SPF Private Clients.
The jury is still out on whether
the Bank of Englands emergency
funding will...[result] in cheaper
mortgages, he added.
9
NEWS
cityam.com
The slight uptick seen by the Land Registry is more positive than other recent indices
THE PUBLIC expects inflation to rise
over the coming year, before going
yet higher in the long term, a
YouGov poll of inflation
expectations revealed yesterday.
The median respondent expected
inflation of 2.8 per cent for the year
from August, up from 2.4 per cent in
June and July, ticking up after last
months surprise rise in consumer
price inflation.
Over the next five to 10 years,
those polled expected 3.5 per cent
inflation yearly, again up from June
and July.
Public expects
inflation to lift
BY BEN SOUTHWOOD
IN BRIEF
Ophir Energy posts first-half loss
nAfrican-facing Ophir Energy posted
a loss of $24.4m (15.4m) for the first
six months of 2012, down from a profit
of $6.1m over the same period last
year. Regulatory costs arising from its
initial public offering last year, plus
general related management costs,
weighed on the oil and gas
exploration firm.
Severstal profit drops 74 per cent
nRussias third-largest steelmaker
Severstal slumped to a 74 per cent
profit drop in the second quarter of this
year, to $155m (98m). The company
cited foreign exchange losses and the
spinoff of its gold mining business,
Nordgold, earlier this year for the drop
in profits. Over the first half profit slid
49.1 per cent to $582m from $1.1bn.
Revenue over the first half was also
modestly lower, at $7.4bn from $7.6bn
the year before.
Firms told to use clearing houses
nFirms buying derivatives to hedge
against price movements ought to use
clearing houses, not banks, the EUs
risk watchdog warned. Clearing houses
are backed by default funds, whereas
banks are riskier and charge high fees,
the European Systemic Risk Board
(ESRB) said. Though the ESRB carries
no legislative clout, it nevertheless
influences regulators and is chaired by
European Central Bank president Mario
Draghi. The bulk of the market is domi-
nated by about 15 banks, which write
bespoke contracts for firms for a fee.
CHILEAN copper miner Antofagasta
reported a 7.6 per cent drop in first-
half profits yesterday, as falling cop-
per prices and higher production
costs took their toll.
The FTSE 100 company said its pre-
tax profits fell to $1.56bn (985m) in
the six months to 30 June, down
from $1.69bn the previous year.
Copper production was up by 16.5
per cent thanks to increased produc-
tion at Antofagastas Esperanza
mine, which began operations at the
start of last year. The miner added
that it was on track to hit a full-year
copper target of 700,000 tonnes.
Gold production at Esperanza
almost doubled to 136,100 ounces
over the first half.
However, rising costs at the flag-
ship mine hit profits. Antofagasta
said yesterday it would spend an
additional $200m to $250m over the
next two years to improve processes
and bring Esperanza to full capacity.
Copper prices per pound at the
BY CATHY ADAMS
London Metal Exchange have fallen
by almost 14 per cent year-on-year,
according to the miner, which hurt
profit.
Antofagasta said yesterday that the
copper industry fundamentals
remained strong over the medium
term, while demand for copper was
relatively robust.
It said yesterday that its focus for
future growth will be on the
Centinela Mining District in Chile.
As exploration costs rose, the divi-
dend was lifted by only 6.3 per cent to
8.5 cents a share.
RusPetro records loss despite
higher oil production levels
RUSSIAN-focused oil and gas firm
RusPetro yesterday reported a pre-
tax loss of $26.4m in the six months
to 30 June.
RusPetro, which listed on the LSE
in January, said the cost of sales
and administrative expenses
dragged profits down.
Revenue increased to $33.8m
(21.3m) from $11.4m last year, on
the back of higher production
levels of 720,026 barrels of oil, up
from 270,220 barrels last year.
BY CATHY ADAMS
Net debt dropped to $227.0m in
the first half, from $405.2m at the
end of 2011.
The FTSE 250 company, whose
operations are located in the
Khanty-Mansiysk region of West
Siberia, said drilling is running
ahead of expectations with 16 wells
completed so far this year.
The oil and gas miner reiterated
its full-year outlook, adding that
production is expected to accelerate
through to the end of the year, with
an average target of 5,600 barrels of
oil per day.
The shares closed down 11.31 per
cent down at 125.5p.
Antofagasta chief Diego Hernandez said the company would push ahead with projects
Antofagasta PLC
1,170
1,150
1,160
1,130
1,110
1,120
1,140
p
1,123.00
29Aug
Prots are down seven per cent year-on-year, and revenues up three
per cent due to higher production offsetting lower copper prices. All in all its a
good set of results, but they shouldnt draw huge surprise.
ANALYST VIEWS
WHAT DO YOU THINK OF

ANTOFAGASTAS RESULTS?
Interviews by Cathy Adams
CAILEY BARKER NUMIS SECURITIES
10
NEWS
cityam.com
...and well show you how
Money talks
Contactusnow for
FR EE one-to-onetr aining & risk-fr eetr adingupto200
T Learn. Understand. rade
0845 164 5331 easy-forex.com/200
*
Operationally, the results are in line with our expectations. The overall
cost for the Esperanza modications appears to be between US$200M
US$250M, in line with our current estimate of the likely costs.
PETER MALLIN-JONES CANACCORD GENUITY

Antofagasta has the potential to deliver strong results, however due to
the economic headwinds it faces we continue to recommend Antofagasta as a
hold. We prefer larger, diversied miners such as Rio Tinto and BHP.
HELAL MIAH THE SHARE CENTRE

RusPetro PLC
155
145
150
135
130
125
140
p
125.50
29Aug
BRITISH oil behemoth BP
yesterday announced plans to sell
Australian dollar bonds in a rare
kangaroo issue.
Kangaroo bonds are Australian
dollar bonds sold by international
issuers. The bond marks the first
time that BP has tapped the
Australian market for funding.
The five-year issue was priced at
A$500m (327m) yesterday, with a
coupon of 4.5 per cent.
The bond will offer a spread of
115 basis points above the
Australian bank rate.
The offer, to be issued by BP
BY CATHY ADAMS
Capital Markets, is the largest
corporate kangaroo issue from an
international borrower this year,
according to bookrunner UBS.
More than 75 per cent of the BP
bonds were allocated to asset
managers and insurance funds.
UBS and ANZ are joint bookrun-
ners on the deal. Over recent
months UBS has been the bookrun-
ner for many European transac-
tions, and yesterday also priced a
500m Centrica 32 year bond with
a 4.25 per cent coupon.
ANZ this week priced a $600m
(379m) bond for Chinese online
games and internet company
Tencent Holdings.
BP turns to Australia for cash
with 327m Kangaroo issue
Fall in price of
copper weighs
on Antofagasta
A JOURNALIST, believed to be from
The Times was yesterday arrested on
suspicion of computer hacking.
The arrest marks the first time
that the police investigation of
journalistic misconduct, has reached
the Times the flagship tile in
Rupert Murdochs UK newspaper
division. The 28-year-old man is
understood to be former Times
journalist Patrick Foster.
Foster is the 11th person to be
arrested by detectives from
Operation Tuleta, the Metropolitan
Police investigation of breaches of
privacy.
Separately, police in Scotland said
yesterday that they had detained and
charged former News of the World
Scotland editor Bob Bird with
attempting to pervert the course of
justice during the 2006 defamation
court case between the tabloid and
former lawmaker Tommy Sheridan.
Sheridan
successfully sued
the newspaper for
defamation in
2006.
Investigation
of journalists
hits The Times
PADDY Power chief executive Patrick
Kennedy said yesterday that a success-
ful Euro 2012 campaign and its rapid
expansion into online gaming had
helped drive profits up by 21 per cent
to 68.7m (54.3m) in the first half of
the year.
The Irish bookmaker said despite
taking a bit of a drubbing from a
string of adverse results since May, the
group sailed through with a 29 per
cent jump in revenue to 311.2m in
the six months to 30 June.
PR stunts like the companys deci-
sion to build a giant vuvutruck in
response to Uefas banning of vuvuze-
las helped Paddy Power attract 78m
in bets during the tournament.
We strongly promoted our brand,
products and money-back specials
during Euro 2012. This contributed to
a 50 per cent increase in online cus-
tomer acquisition for the half year,
Kennedy said.
Online sales jumped 41 per cent to
Euro 2012 helps
Paddy Power to
a first-half win
BY KASMIRA JEFFORD
191m while mobile gaming revenue
more than trebled to 53m. The group
said two new mobile and table-led
apps a casino product called Roller
and a sports betting-based social game
called BetDash will start contribut-
ing to revenue in the second half.
The group also continued its aggres-
sive expansion overseas and entered
the Italian online market in May,
where it has already taken a four per
cent share of the online sports betting
market. It has also seen strong growth
online in Australia.
Dominos Pizza tries to tempt
Swiss in fresh expansion drive
DOMINOS PIZZA is to step up its
expansion across Europe after
buying the rights to operate stores
in Switzerland, Lichtenstein and
Luxembourg.
The pizza chain, which has over
700 stores in Britain, Ireland and
Germany, yesterday announced it
will pay Global Brands 4.7m for
Dominos Switzerland, which
already operates 12 outlets in the
country.
The deal also includes the
BY KASMIRA JEFFORD
exclusive rights to operate and
franchise Dominos stores in
Liechtenstein and Luxembourg as
well as an option to buy the master
franchise agreement for Austria.
Switzerland represents a good
opportunity to continue our
expansion into Europe by acquiring
an existing business with a basic
infrastructure and some existing
stores with good potential in a very
affluent consumer market, Lance
Batchelor, chief executive said.
Dominos plans to open at least
25 stores over the next five years,
with an eventual aim of reaching 65
outlets.
IN BRIEF
Former Orange boss hails taxi firm
n The former boss of the Orange
mobile network has taken a stake in
troubled taxi maker Manganese Bronze,
regulatory filings showed yesterday.
Sanjiv Ahuja and his wife Anju have
built their holding to 4.43 per cent of
Manganeses shares worth 167,130
based on yesterdays closing price.
Manganese revealed a 4m hole in its
accounts earlier this month, blaming an
IT error. Ahuja, who stood down as
LightSquared chief executive in
February, declined to comment on the
share purchase.
BT to sell stake in Indian tech firm
n BT is to sell about five per cent of
Indian IT service provider Tech Mahindra
for about $100m (63m), two sources
with direct knowledge of the situation
said yesterday. The UK telecoms compa-
ny is selling Tech Mahindra shares in the
price band of 735 rupees (8.3) to 790
rupees each, the sources said, a discount
of 5 to 12 per cent from its closing price
of 834.90 rupees yesterday. Tech
Mahindra and BT declined to comment.
Tech Mahindra, which provides technolo-
gy services to telecoms companies
including BT and AT&T, is majority-
owned by Mahindra & Mahindra, one of
Indias largest makers of sports utility
vehicles and tractors. The shares are
expected to change hands on the Indian
stock exchanges via block deals today.
Ferragamo hails robust half-year
n Italian shoemaker Salvatore
Ferragamo yesterday shrugged off con-
cerns that Europes financial turmoil is
starting to take its toll on the luxury
goods markets, as it posted a 22.5 per
cent rise in first-half net profits. Net prof-
it rose to 55.9m in the period, including
minority interest profit for 11.1m. Sales
in the period rose nearly 23 per cent to
565.1m, boosted by well-heeled trav-
ellers shopping in Europe and the
groups large retail presence in China.
Paddy Power PLC
53.50
52.50
53.00
51.50
50.50
51.00
52.00
p 53.30
29Aug
Bob Bird was
detained and
charged in
Glasgow
THE OLYMPICS helped push pre-tax
profit up almost 50 per cent in the
first half of the year at Chime
Communications.
The marketing and advertising
group yesterday reported 47 per
cent growth year-on-year in interim
pre-tax profit to 10.9m, boosted by
its contracts with almost a third of
the 60 top sponsors of the Olympic
and Paralympic games.
Its sports marketing division
saw 161 per cent like-for-like
growth in operating profit, which
Chime said reflected its
Medal-winning performance at
Chime as Olympics boost results
BY KATIE HOPE
involvement in London 2012.
The firm, which in June sold off
its main public relations business
Bell Pottinger, has shifted its focus
to sports marketing.
Sports marketing has become
the leading way for global brands
to engage their audiences as the
2012 Olympic and Paralympic
Games have demonstrated, said
Chime chief executive Christopher
Satterthwaite.
Charles Stanley analyst Richard
Nunn said the results indicated
Chime was on track to benefit from
the 2014 FIFA World Cup and the
2016 Olympics in Rio.
888 bets pay off as revenue rise
enables it to reinstate dividend
BY KASMIRA JEFFORD as the highest revenues in the
history of 888.
The second half of the year will
see increased investment in Spain,
where we will attempt to build on
our impressive market share, and
also in the United States, where we
are preparing for regulatory
changes, he said.
Earlier this year Spain awarded
online gaming licences to several
gaming companies including 888,
which removed regulatory
uncertainty.
The group reinstated the
interim dividend at 2.5 cents per
share, sending shares up six per
cent to 87.5p.
12
NEWS
cityam.com
Chime Communications scored contracts with almost a third of the top Olympic sponsors
8ection 17 Licensing Act 2003
Licensing Act 2003
Application for a new Premises
Licence
Notice is hereby given that Champion Cuisine Ltd
has applied to the City of London on Z3rd Aug
Z1Z for a new premises licence to use leony, 4
Gresham 5treet, London, ECZv /AY for the
provision of supply alcohol on or off the premises
between the hours of 1: to : on Monday to
5aturday & 1Z: to Z3:3 on 5unday.
A record of this application is held by the City of
London and can be viewed by members of the
public online by visiting www.cityoflondon.gov.uk or
by appointment at the offices of City of London
licensing authority, Walbrook Wharf, /BB3 Upper
1hames 5treet, London EC4R 310.
Any person wishing to make a representation in
relation to this application must give notice in
writing to the licensing authority at the address
shown above, giving in detail the grounds of
objection by Zth 5eptember Z1Z.
1he licensing authority must receive representations
by the date given above. 1he licensing authority will
have regard to any such representation when
considering the application. lt is an offence, under
section 15B of the Licensing Act Z3, to knowingly
or recklessly make a false statement in or in
connection with an application for premises licence
and the maximum fine on being convicted of such
an offence is 5.
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Dominos Pizza UK & IRL PLC
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888 HOLDINGS yesterday said
strong demand for its casino and
poker products helped to drive
earnings in the first half of the
year, prompting the gaming firm
to reinstate its interim dividend.
The company, which operates
888 casino, poker, sport and bingo
brands, said its earnings before
interest, taxes, depreciation, and
amortisation (Ebitda) rose 81 per
cent to $36m in the six months to
the end of June.
Revenue increased by 21 per
cent to $186.4m, which chief
executive Brian Mattingley hailed
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DAIKIN Industries will buy
Goodman Global for $3.8bn (2.4bn),
it said yesterday, gaining greater
access to the North American
market and making the Japanese
company the worlds largest maker
of heating, ventilation and air-
conditioning (HVAC) systems.
Daikin has long been interested in
its Houston, Texas-based rival, but
put off takeover talks following
Japans devastating earthquake and
tsunami last year and then later due
to uncertainty over the global
economy.
The Japanese firm, helped by a
strong yen, will pay $3.8bn for
Goodman in an acquisition that will
allow it to overtake top-ranked
Carrier brand maker United
Technologies as the worlds top
HVAC maker.
Daikin will not turn to equity
markets to fund the deal but use
loans, its cash reserves and tap a
bond issue of about 50bn yen, a
company official said earlier
yesterday. Reports of the purchase
from private equity firm Hellman &
Friedman before its announcement
caused Daikin shares to fall on
worries that the price was too high.
Daikin shares tumbled nearly
nine per cent in early trade, before
trimming losses to finish 3.5 per
cent lower, its biggest daily drop in
three weeks.
Daikin looks to
US market with
Goodman buy
BRITISH outsourcing group Serco
said yesterday a raft of recent con-
tract wins would help it to strong
full-year revenue growth, after reor-
ganisation costs and continued
delays in the award of US federal
work pushed first-half profit down 17
per cent.
The flow of much-anticipated pub-
lic sector work in Sercos core British
market, which represents around
half group profit, has been slowed by
heavy austerity measures, while pres-
idential elections have choked spend-
ing plans in the US.
While the US, where first-half rev-
enue slipped 16 per cent, was likely
to continue suffering from contract
delays and cancellations in the near
term, Serco said yesterday a host of
new contracts in Britain would add
to the 4.2bn of work already won
across the group this year.
Sercos contracts include running
prisons and air traffic control cen-
tres around the world as well as the
DLR, the light railway in East London
that helped carry millions of specta-
tors to the Olympic Games.
Serco confident
despite drop in
first-half profit
BY HARRY BANKS Serco said it had identified 31bn of
further opportunities.
The 4.2bn of work won in the peri-
od compared with 2.5bn a year ago,
while Serco said its order book the
value of future revenues based on all
existing signed contracts had
increased to 19.4bn.
Serco reported adjusted first-half
pretax profit of 102m, in line with
analyst forecasts.
The groups earnings in the period
rose 4.3 per cent to 2.34bn, under-
pinned by last years acquisitions and
good growth in Australasia and the
Middle East.
The group now makes 46 per cent of
its earnings overseas.
Serco Group PLC
22Aug 23Aug 24Aug28Aug 29Aug
577.50
575.00
572.50
570.00
567.50
565.00
562.50
560.00
p
566.00
29Aug
PRIVATE equity firm KKR is in
talks to invest about 100bn yen
(800m) for control of Japan's
Renesas Electronics, sources said
yesterday.
The deal would give KKR more
than 50 per cent of cash-strapped
Renesas, and could speed the pace
of its current restructuring as it
fights for survival in the face of
sinking prices and aggressive
overseas rivals.
News of the plan pushed
Renesas' battered shares to a
seven-week high, but the stock is
still trading at around half its
levels of six months ago.
A deal with KKR would be the
firm's largest investment in Japan,
and would be among the top ten
biggest private equity investments
in the world's third largest
economy.
Under the proposal, New York-
based KKR would buy new shares
of Renesas, the world's fifth-
largest chipmaker, through a
private placement, sources
familiar with the deal said.
Executives from KKR traveled to
Tokyo this week to present the
plan to Renesas main banks and
its three major shareholders, NEC,
Hitachi and Mitsubishi Electric.
14
NEWS
cityam.com
KKR founders Henry Kravis and George Roberts made their first acquisition in 1977
KKR considers 800m Renesas
stake in second Japanese foray
Big bang opens
the Paralympics
Got A Story? Email
thecapitalist@cityam.com
15
cityam.com
cityam.com/the-capitalist
THECAPITALIST
Fireworks got the
opening ceremony
off to a
spectacular start
(left).
Right: Prime
Minister David
Cameron and
Samantha
Cameron as well
as the Duke and
Duchess of
Cambridge,
Princess Anne and
London mayor
Boris Johnson
were all in
attendance
THE London Paralympic Games
opened with a dramatic big bang
last night as a glowing sphere
descended into the middle of a giant
umbrella signifying the creation of
the universe.
Then in a tribute to the British
weather, which just hours earlier
had soaked the Olympic torch-
bearers racing through the streets
of the Square Mile, dancers bearing
lit-up umbrellas emerged. In this
wettest summer on record, the rain
splashing on the stadium had to be
faked as the real stuff had for once
held off.
Wheelchair -bound physicist
Stephen Hawking was the star of
the show. Speaking through his
famous computerised voice system,
he urged those in the packed
Olympic stadium to: Look up at the
stars and not down at your feet. Be
curious.
R
e
g
i
s
t
e
r
e
d

c
h
a
r
i
t
y

S
C
0
2
4
4
1
4
Join us for the London Night
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OpenHouse
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2012
Despite the lack of any parachuting hijinks
with James Bond, the Queens entrance (right)
saw a rousing cheer, while dancers performed
in a spectacular ceremony (above and bottom)
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SWIP
The asset manager has added
Alan Bridges to its global rates
team as investment director of
UK rates. Bridges has 27 years
experience in global fixed
income, most recently at UBS
Global Asset Management
where he was a senior portfolio
manager. Prior to that he
worked in a number of senior
positions at ABN Amro, Morley and Citibank. Bridges will
be responsible for all aspects of the management of gilt
and index linked bond funds, including the development
of the investment process.
Arle Capital Partners
The London-based private equity firm has announced
that Dr Peter Goode will join its senior team as partner.
Goode was most recently managing director and chief
executive officer of the Transfield Services Group and
has also held the positions of chief executive officer of
Vetco International and executive chairman of Aibel. He
brings with him over 30 years experience in the energy
and natural resources sector.
MetLife
In a push to grow their independent financial advisor
(IFA) distribution channels ahead of changes imposed by
the retail distribution review, the life insurer has
appointed Gary Powell as regional sales director for the
central region of the UK and has promoted Mike Hocking
to the role of IFA sales director. Powell joins from
Capstone Financial where he was group sales director.
Prior to this, he worked at St James Place where he
progressed from consultant to senior sales manager.
Hamptons International
The residential property company has expanded its
development land and planning team, appointing Matt
Henderson as an associate development agent.
Henderson will be responsible for land acquisitions and
disposals in London. He arrives from Savills where he
specialised in the development agency and consultancy
sector. Henderson also has experience of residential
development investment gained at Strutt & Parker.
16
LONDONREPORT
Light trading
in US ahead of
Jackson Hole
U
S stocks edged higher yesterday
in the lightest trading of the
year as investors waited for a
key speech by Federal Reserve
chairman Ben Bernanke on Friday.
Daily volume this week has been very
low, even for a seasonally slow period,
with the market recording three of the
four lowest volume full sessions of
2012. The low volume reflected
investors reluctance to place big bets
before Bernankes speech.
What little excitement there was
came from data showing pending
home sales rose 2.4 per cent in July, a
bigger gain than expected, according
to the National Association of Realtors.
An index of housing shares was up 0.5
per cent. Were seeing consistently
good numbers out of the housing mar-
ket. Its hard to get too negative on the
US economy with the housing market
doing better than expected, said Paul
Zemsky, chief investment officer of
Multi-Asset Strategies at ING
Investment Management in New York.
I think the US is doing pretty well
today, given what the rest of the world
has done, he said. The Shanghai
Composite index hit its lowest close
since February 2009, while the S&P
500 is trading near a four-year high.
Bernanke addresses a conference of
central bankers in Jackson Hole,
Wyoming, and could announce new
measures to boost growth. He is
expected to stoke expectations for a
third round of quantitative easing,
though he may not detail the timing
of the Feds action.
The Dow Jones industrial average
inched up 4.49 points, or 0.03 per cent,
to 13,107.48. The Standard & Poors 500
Index rose 1.19 points, or 0.08 per cent,
to 1,410.49. The Nasdaq Composite
Index gained 4.04 points, or 0.13 per
cent, to 3,081.19.
B
RITAINS blue chip shares fell
yesterday in very light trade as
uncertainty over the outlook for the
global economy and the next moves
by central banks prompted many investors
to stick to the sidelines.
Miners were the standout fallers, off 2.2
per cent, weighed down by a drop in the
copper price.
Global growth worries affected demand
expectations for the metal, especially with
official August PMI data from top metals
consumer China, due on Saturday, expect-
ed to hit a nine-month low.
Commodities trader Glencore was the
biggest laggard, sliding four per cent, hav-
ing been the top FTSE 100 riser on Tuesday.
Takeover target Xstrata shed 1.6 per cent.
A Norwegian sovereign wealth fund has
opposed the terms of Glencores proposed
$30bn takeover of the miner. Norway joins
Qatar, whose own sovereign wealth fund
investment arm demanded improved
terms and threatened to vote against the
deal. Both Glencore and Xstrata shares
also traded without entitlement to their
latest dividend payments yesterday.
The FTSE 100 ended down 32.18 points, or
0.6 per cent, at 5,743.53, after closing 0.02
per cent lower on Tuesday, in volume at
just 66 per cent of the 90-day daily average.
Theres a risk of a bit more downside
slippage, Lynnden Branigan, technical
analyst at Barclays, said.
Investors will closely watch US Federal
Reserve chairman Ben Bernanke and other
central bankers in Jackson Hole, Wyoming,
at the end of the week at an annual get-
together that often hints at forthcoming
monetary policy moves. European Central
Bank chief Mario Draghi will not attend.
Miners weighed down by copper
price slip as quiet FTSE ends lower
BESTof theBROKERS
Amlin PLC
374
376
378
382
380
384
386
380.00
29 Aug
p
AMLIN
Numis upgraded Amlin
to add from hold
and raised its target
price by 60p to 445p
after the insurance firm
last week reported it
returned to profit in the
first half of the year.
DASHBOARD CITY
NEW YORK
REPORT
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
FTSE
5,860
5,840
5,820
5,780
5,760
5,800
5,740
5,743.53
29 Aug
LOreal
96
97
98
100
99
101
102
96.58
29 Aug
LOREAL
Canaccord Genuity
retained its sell rating
after the firm posted half
year results on Tuesday,
and kept its target price
at 90 per share, and
said it was trading 10 per
cent above fair value.
Derwent London PLC
1,920
1,930
1,940
1,960
1,950
1,970
1,980
1,913.00
29 Aug
p
DERWENT
LONDON
Espirito Santo reduced
its target price by one
per cent to 1,960p and
retained its neutral
stance saying the drivers
of Derwents growth
remain in robust health.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
in association with
J
UST hours after New Jerseys
50 delegates officially made
her husband the Republican
Partys presidential nominee,
Ann Romney took to the stage
in Tampa to give a stoic defence of
her husbands business career, his
values, and most of all, his
credentials to be the next President.
Her remarks were, initially at least,
so well received that some joked the
Republicans may have picked the
wrong spouse.
Ann Romney has been widely
touted as the candidates secret
weapon, an individual with strong
approval ratings, despite the fact a
relatively small percentage of the
population has even heard her speak.
In one simple sentence she
conveyed why, amid all the political
D
IFFERENTIATION is
increasingly the centrepiece
of the Liberal Democrats
political strategy. Back in the
halcyon days of May 2010, as
Nick Clegg and David Cameron flirted
together in the Rose Garden, the over-
arching message was about how
much the LibDems and the
Conservatives had in common.
But as the coalition has struggled
towards the halfway point of its parlia-
ment and thoughts turn to the next
election, the governing parties have a
habit of highlighting their differ-
ences, not their similarities. This isnt
really about future government poli-
cy, it is about drawing electoral battle
lines.
The LibDems are beginning to reach
the conclusion that holding your
nerve and getting on with the busi-
ness of government is not yielding
dividends among the wider electorate.
The partys prevailing poll ratings are
somewhere between poor and utterly
dismal, often showing them vying
with Nigel Farages United Kingdom
Independence Party in the distant bat-
Spread betting, CFDs and
Trade today at www.cityindex.co.uk
The price of Spot Gold has rallied every year
since 2001, seeing average yearly gains of 17.6%.
FACT OF
THE DAY
cityam.com/forum
We need our tax
system to reward
effort and excellence
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.
18
MARK LITTLEWOOD
Cleggs confused narrative offers
no remedy to Britains problems
tle for third and fourth place. Local
election results have seen a serious
erosion of the partys council base and
it is hard to imagine the circum-
stances in which the LibDems could
pull off one of their famous mid-term
parliamentary by-election triumphs,
so often the source of both an
upswing in national publicity and a
morale boost for long-suffering
activists in the past.
But if Cleggs recent musings about
the need to hit the wealthiest harder
are anything to go by, it seems the
LibDems have lost sight of who they
need to be talking to. The confused
narrative seems to be that if you like
the coalition but dont much like the
rich, then you will feel comfortable
voting for the LibDems. A message of
this nature surely only has niche
appeal, to put it mildly. Indeed, in
many ways it is something of a marvel
that the LibDems still tend to be
polling into double digits.
The deputy prime minister has
retreated into the comfort zone of
calling for greater fairness. This is
one of those cherished LibDem buzz
words which is essentially impossible
to either oppose or to define. Everyone
agrees that the rich should pay more
in taxes than the poor. And even the
most cursory of glances at the statis-
tics shows they do so. In spades. The
top 1 per cent of earners, so reviled by
many Occupy campaigners, pay over
25 per cent of all income tax and the
top 10 per cent account for more than
half of all income tax receipts. Those
with the broadest shoulders are
already carrying a very heavy burden;
precious little gratitude they seem to
get for it. But Clegg feels sure that
those of considerable wealth need to
contribute even more to the state so
that they feel they are making a con-
tribution to the national effort. If you
are a high earner, and pay your taxes,
you are already making a substantial
contribution to the national effort.
The country needs more millionaires,
not fewer. That requires a taxation sys-
tem which unambiguously rewards
effort and excellence as well as a pre-
vailing culture which celebrates
achievement rather than envies it. In
modern Britain, we risk ending up
with neither. If Clegg is concerned
about some of the more bizarre
exploitation of loopholes by the afflu-
ent, such as Jimmys Carrs notorious
K2 scheme, he should set about sim-
plifying our tax code. Given our tax
rules run to several times the length
of War and Peace, its hardly surpris-
ing that only the well-heeled and well-
advised find cracks in the system.
Similarly, if the LibDem leader is
concerned about taxes which hit the
relatively poor, it would be consistent
for him to push for a lowering of
tobacco and alcohol duties. Instead,
he seems keen on placing a minimum
price on booze, which will have zero
effect on affluent types who quaff
their claret, but will hit those on very
tight budgets who hope to afford a
can or two of Special Brew.
There is a compelling and distinctive
narrative available to Clegg and the
LibDems. It would be to champion the
interests of small businesses and
make it easier for them to thrive. The
deputy prime minister should have
seized this territory and drawn a con-
trast with the Conservatives who are
often seen whether fairly or not as
allies of big business and vested corpo-
rate interests. Instead, he has chosen
an approach which might just shore
up his flagging popularity among
LibDem activists at their party confer-
ence, but which offers no serious pre-
scription for the serious problems
facing Britain.
Mark Littlewood is director-general of the
Institute of Economic Affairs.
attacks on his character, voters
seldom hear about who her husband
really is: Mitt doesnt like to talk
about how hes helped others
because he sees it as a privilege, not
a political talking point. She
highlighted his challenges and
accomplishments, before assuring
the crowd he will not fail. The
candidate and the audience were
visibly moved by her remarks.
Republicans and certain viewers at
home will be too.
Some might say Ann Romneys
speech was the most critical of the
convention; a Republican offensive
in what is being touted as the
defining battle of the election: the
gender gap. The Presidents lead
among female voters, primarily
single women, is approximately 10
per cent. Distractions over social
issues have prevented Republicans
from talking about the economy, the
issue women overwhelmingly want
to discuss. Romney does, however,
enjoy a robust lead with male voters,
independents, and is currently
poised to exceed George W. Bushs
2004 margin with married women.
If Ann Romneys speech resonates
with the wider electorate, the
Republican nominee will create a
substantial headache for the
President.
If the presence of Paul Ryan makes
it easier for Romney to speak to
conservatives, his wifes remarks
may have made it easier for him to
open up and talk about his perceived
liabilities, namely his business
career in private equity. Romney has
long struggled with how best to sell
his achievements without appearing
out of touch. But rather than
painting the image of a heartless
executive, Ann Romney made Bain
Capital sound like a successful
family start-up that with her
husband at the helm, had a knack
for giving life to businesses and jobs.
The country could do with a chief
executive like that.
Voters are growing increasingly
anxious that neither candidate
possesses the ability to return the
country to prosperity. Romney has
one uninterrupted opportunity to
convince them why this is only a
half truth.
Romney is certainly not the first
presidential candidate who struggles
to connect with voters, but he is
certainly one of a handful to have an
advocate as charming, engaging and
strong as his wife. On Tuesday night,
voters heard about a new candidate:
hard to get to know, but when you
do, youll actually like him. You
might even vote for him.
You just dont know it yet.
Ewan Watt is a Washington, DC-based
consultant. You can follow him on Twitter
@ewancwatt
THE WHITE
HOUSE RACE
EWAN WATT
Romneys wife goes on a charm offensive to woo female voters for Mitt
In association with
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19
Swede dreams
[RE: Sweden turns the page and
Scandinavian noir explains why, Tuesday]
It is worth adding that Sweden is also suc-
cessful because of eight decades of close
cooperation between the state, business
and unions. Moodys recently reaffirmed
Swedens AAA rating and cited not merely
its comparatively modest supply-side
reforms but also its equal society.
Alexander Milne
Its amazing that the UK is so far behind
Sweden in its education reforms. Once par-
ents are given the freedom to decide which
schools to send their children to, they will
never vote for this to be taken away. Gove
needs to deliver more than free schools.
Daniel Terry
Leading story
[RE: Why a flair for storytelling is vital if
you want others to follow you, Wednesday]
No matter how good a storyteller (or story),
if there is no substance, you wont be able
to lead people for very long.
A.N. Segoy
Storytelling isnt the only important thing.
Equally important is an ability to involve
others to share their stories. The fact is that
nobody enjoys a one-sided story. You also
need to involve your audience in the con-
versation and share their experiences. If you
can make someone else feel important in a
conversation, they will keep coming back to
you since you have the power to inspire
them.
Ameya Dhupella
C
ATALONIAS decision to seek
a bailout from the Spanish
government was just a
matter of time. With over
5.7bn (4.5bn) of debt
maturing before the end of the
year, Spains wealthiest but also
most heavily indebted region had
very little chance of paying its bills
without some form of external
assistance. The request is going to
be a huge test of Prime Minister
Mariano Rajoys mettle.
Despite asking for a loan of over
5bn that is, almost one third of
the money the Spanish government
has earmarked to help all 17 of the
Comunidades Autnomas the
Catalan government has so far
shown no signs of graciousness
towards the central government.
In fact, a Catalan government
spokesman provocatively told the
press that Catalonia will not even
say thank you to the Spanish gov-
ernment for its help. The logic
being that the money the region is
going to borrow was Catalan tax-
payers money in the first place
previously confiscated in order to
pay for transfers to the rest of Spain.
Most importantly, Catalonia has
said it will reject any political con-
ditions and has no intention to
make further cuts to meet the
deficit target imposed by the cen-
tral government for this year.
The upcoming negotiations over
the details of the bailout will there-
fore turn into a key credibility test
for Rajoy, on two fronts.
Domestically, his government sim-
ply cannot afford to display any
weakness throughout the talks
with the Catalan leaders. If Rajoy
rolls over for Catalonia, other
regions will feel encouraged to
claim their share of cash from the
central government, with little or
no strings attached. This will raise
questions over whether the 18bn
in the bailout fund set up by the
TOP TWEETS
Do you agree with 150,000+ who have
signed our petition to debate the West Coast
Mainline deal in parliament before a decision
is made, not a post mortem afterwards?
@RichardBranson
Warren Buffett goes to Britain: Clegg calls
for a one-off tax on the super rich
@ZeroHedge
Ive no objection to civil servants getting
honours its a cheap way of keeping their
hands out of the till
@EamonnButler
Lets go Team GB at the Paralympics! Good
luck!
@TomDaley1994
YES
No one could defend the stifling corporatism that has penetrated our
political system. As such, Bernard Jenkin and the rest of the public
administration select committee are right to be calling for the
secretive honours system to be opened up to scrutiny. However, the
committee is wrong to suggest that business people dont deserve
to be honoured for simply doing the day job. Consider our most
successful living businessman, Sir Richard Branson. Like most
wealthy and successful company leaders, he gives plenty to charity,
including to his own. However, even if he had never given away a
penny, the value that his genius and hard work has created would be
deserving of official honour. Yes, we should make sure that all
recipients are truly deserving; but as long as we have a system for
honouring success, business people should be celebrated alongside
the rest of society for all they contribute to the wealth of our nation.
Philip Salter is business features editor at City A.M.
Philip Salter
NO
Bernard Jenkin
RAPIDresponses
Spanish government to help cash-
strapped regions is going to be
enough. At this stage, half of the
money in the pot has already been
committed, with only three of the
17 regions deciding to tap the fund,
so far.
At the European level, the Spanish
government desperately needs to
prove that it is capable of reining in
the regions spending. As European
Council president Herman Van
Rompuy recalled during his visit to
Madrid earlier this week, internal
problems resulting from the way
the Spanish state is organised are
not Brusselss, but Madrids. In
other words, domestic inter-region-
al Spanish politics will not be con-
sidered a valid justification for
Spain missing its EU-mandated
deficit targets once again.
With the markets broadly expect-
ing Spain to ask the Eurozones tem-
porary bailout fund, the European
Financial Stability Facility, to start
buying Spanish bonds in a bid to
reduce its unsustainable borrowing
costs, the Spanish government
needs to make sure that it comes
out of the negotiations with
Catalonia in a position of strength.
If, on the other hand, Rajoy is
shown to be unable to exert control
in his own backyard, his negotiating
position in Brussels will surely be
weakened and his Eurozone coun-
terparts will be increasingly reluc-
tant to take his promises of reform
and fiscal consolidation seriously.
Vincenzo Scarpetta is a researcher at
Open Europe.
VINCENZO SCARPETTA
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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
Catalonias bailout
tests Madrids rule
over Spains regions
Our report on the honours system concludes that honour should
recognise exceptional service to the nation rather than just doing
the day job. This was a persistent concern among witnesses
before our inquiry. It is distasteful for people who already command
vast remuneration packages for doing their job to be honoured for
simply being at the helm of large companies. Our concern is that
others without fame or wealth are often overlooked in favour of the
usual suspects. Ordinary people who support their communities
should be recognised. Our central recommendation is for an
independent Honours Commission to remove any suspicion that
honours are used by politicians to reward their supporters, and to
abolish the so-called Prime Ministers list. Then people will know
that businessmen who are honoured are deserving.
Bernard Jenkin is MP for Harwich and North Essex and Chairman of
the public administration select committee
Should UK business leaders be awarded
honours for simply doing the day job?
Smashing Windows Phones
cityam.com
20
LIFE&STYLE
WORDS BY
STEVE DINNEEN TECHNOLOGY
A
S THE dust settles following the
explosive legal case between
Apple and Samsung, in which
the Korean firm was ordered to
pay a minimum of $1bn for patent
infringement, an unlikely third party
is emerging as one of the potential
winners. Microsoft has invested
billions in its Windows Phone
software, to some critical acclaim, but
has yet to establish itself as a serious
force in the smartphone world.
The landmark patent case could,
though, give it a real boost. While the
lawsuit was between Apple and
Samsung, Googles Android is widely
seen as the real target of Cupertinos
ire. The ruling could help to convince
manufacturers that it is in their
interests to vary the operating
systems they offer on their handsets
in order to spread the risk (following
the reasoning that, while Android is
free, Windows Phone may come with
less baggage). The timing is perfect
for Microsoft, with a new version of
its Windows Phone operating system
just weeks away from release.
If you cant wait that long, here are
some of the current crop of Windows
Phone devices.
Nokia Lumia 900
The daddy of Windows Phones, the
Lumia could do very well out of the
Apple/Samsung bunfight. Apples
lawyers even used the device as
evidence that phones could be created
that didnt infringe Apples patents. The
4.3 screen makes it one of the bigger
phones on the market and, in our
opinion, its one of the best, too.
The S-Pen
Those used to handling the original Note
will instantly spot the longer, thicker pen,
which is also supposed to be more comfort-
able to hold. A completely new feature
allows users to hold the pen directly over an
image file or email to preview it without
having to actually load it, which could be a
great time saving device.
And one last thing...
One of the most hotly awaited announcements
was which operating system the new Note
would be running. Android fans can breath a
sigh of relief it will come loaded with the lat-
est Jelly Bean version of the software. It should
go on sale in Europe in October in plenty of
time to stock up for Christmas. And, of course,
you can also get it in white.
Samsung Omnia M
Aimed at the budget end of the
Windows Phone market, this Samsung
handset looks slick but is let down by
the measly 4GB of storage, which, like
all Windows devices, is not expandable.
On the upside, it comes with the
Samsung badge of quality, including the
industry-leading Super AMOLED
touchscreen.
HTC 7 Mozart
The Mozart, as the name suggests,
prides itself on its great sound quality,
with surround-sound for video and
music playback. The handset itself isnt
going to set the world on fire but it is
well-built, light and comes with a decent
eight megapixel camera. If youre a fan
of the Taiwanese manufacturer, this
handset is worth a look.
NEED TO KNOW
THE NEW GALAXY NOTE
The basics
The new Note will be bigger than its prede-
cessor, at 5.5, true 16:9 aspect ratio, making
it ideal for watching movies on the go. It also
shaves a fraction off its width, coming in at
just 9.4mm. It will be packed with a superfast
1.6GHz quad-core chip. It retains the same HD
Super AMOLED panel screen from the original
Note.
SAMSUNG LAST night released the hotly
anticipated successor to its genre defining
phablet the Galaxy Note, catchily dubbed
the Galaxy Note II. The Korean firm is still
reeling from the ruling that could yet halt
sales of some of its most popular smart-
phones. The Note, though, is not on Apples
hit-list and that makes its success more
important than ever. Here is what you need to
know.
ZTE Tania
You may not realize it, but ZTE is one of
the biggest phone manufacturers in the
world. It has, until now, focused on its
home Chinese market but is preparing
for a global push. The Tania is one of its
mid-range offerings, although it comes
with a decently sized 4.3 inch screen and
impressive battery life. Dont expect
many hardware extras, though the
screen isnt great quality, the camera is
poor and it only has 4GB of storage.
1
TBR Report "IBM System x
x86 servers: Meeting the demands of todays enterprises by combining value and support," January 2012.
2
Source: Intel
Performance comparison using SPECfp*_rate_base2006 benchmark. Baseline score of 267 on prior generation 2S Intel
Xeon
processor X5690 (3.46GHz, 6-core, 12MB L3, 6.4 GT/s, 130W)

based platform published at www.spec.org as of 6 Sept 2011. Estimated new score of 486 on 2S Intel
Xeon
processor E5-2690 (2.90GHz, 8-core, 20MB L3, 8.0 GT/s, 135W) is based on Intel
internal
measured estimates as of 6 Sept 2011 using two Intel
Xeon
processor E5-2690, Turbo Enabled, EIST Enabled, Hyper-Threading Enabled, 64GB memory (8x8GB DDR3-1600), Red Hat
Enterprise Linux Server

6.1 beta for x86_6, Intel
Compiler 12.1.
3
x3500 M4 supports up to 768GB of memory using 32GB LRDIMMs in its 24 memory slots. Previous generation x3500 M3 supports up to 192GB of memory.
4
Ships with 4 1Gb Ethernet ports standard and supports integrated slot-less 10Gb Ethernet with Virtual Fabric. Previous generation server includes two 1Gb Ethernet slots and requires use of a PCI Express slot
to support 10Gb Ethernet.
5
x3500 M4 supports up to 32 internal 2.5" HDD. Previous generation x3500 M3 supports up to twenty four 2.5" HDD.
6
Quarterly price quoted is based on IBMs 0% System x Solution Finance offering (FMV lease). Terms & Conditions Apply: Offering availability subject to credit approval; for more details and full Terms and
Conditions please visit: http://www.ibm.com/financing/uk/lifecycle/acquire/xsolutionfinancing.html.
Rates and offerings are subject to change, extension or withdrawal without notice. Prices include VAT at a rate of 20%.
IBM hardware products are manufactured from new parts or new and serviceable used parts. Regardless, our warranty terms apply. For a copy of applicable product warranties, visit
http://www.ibm.com/servers/support/machine_warranties. IBM makes no representation or warranty regarding third-party products or services. IBM, the IBM logo, System Storage and System x are registered
trademarks of International Business Machines Corporation registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. For a current list of IBM
trademarks, see www.ibm.com/legal/copytrade.shtml. Intel, the Intel logo, Xeon and Xeon Inside are trademarks of Intel Corporation in the U.S. and other countries. All prices and savings estimates are subject
to change without notice, may vary according to configuration, are based upon IBMs estimated retail selling prices as of 01/04/2012 and may not include storage, hard drive, operating system or other features.
Reseller prices and savings to end users may vary. Products are subject to availability. This document was developed for offerings in the United Kingdom. IBM may not offer the products, features, or services
discussed in this document in other countries. Contact your IBM representative or IBM Business Partner for the most current pricing in your geographic area. 2012 IBM Corporation. All rights reserved.
Read the white paper
See what leading IT industry analysts
say about the performance of the new
IBM System x servers.
Powerful. Reliable. Scalable.
Introducing the new IBM System x3500 M4 Express server.
Succeeding in today's competitive environment takes substantial amounts of innovation and growth.
The new IBM System x3500 M4 Express server with the latest Intel
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helps you achieve both. It features up to 80% more processing power
1
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4
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Furthermore, with industry-leading reliability
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6
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Intel
Xeon
E5-2603 1.8GHz processor

4GB RDIMM memory
RAID disk controller
Multiburner
550 Watt Hot Swap power supply
PN: 7383E2G
Intel
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IBM System Storage DS3524 Express
3,704 (incl. VAT)
6
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External disk storage with 6Gb/s Serial Attach SCSI (SAS)
interface technology
Scalable up to 48TB with 500GB NL-SAS 2.5" drives
Support for 96 drives with combination of EXP3512 or
EXP3524 expansion enclosures
Field upgradeable with FC or ISCSI host interface cards
Self encrypting drive options available for secure data at rest
DS3512 also available with 3.5" drive support
22
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GAMES
cityam.com
Fill the grid so that each
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in the box above or to the
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You can only use the
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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
33 11
45
16 16
9 29
8 13
45
12 7
10 15
35 14
45
24 17
16
22
20
23
28
17
28
13
15
6
15
23
34
12
29
10
30
39
12
9
3
ACROSS
1 Gesture involving
the shoulders (5)
4 Fire a gun (5)
7 Fabric made of silk (7)
8 Skill (3)
9 Small, open pies (5)
11 Place where milk,
butter, cheese, etc
is produced (5)
12 Assumed name (5)
14 Cloak, often knitted (5)
16 Sign of the zodiac (3)
17 Item which enables
something to be used
in a way diferent
from that for which
it was intended (7)
19 Rubbish (5)
20 Muggy (5)
DOWN
1 Pathnder (5)
2 Harass with
persistent
ridicule (3)
3 Group containing
one or more
species (5)
4 Pedestal (5)
5 Egg-shaped
and utey-
toned musical
instrument (7)
6 Moth-eaten (5)
10 Calamitous (7)
12 Permit (5)
13 Judder (5)
14 Pulverise (5)
15 Glaringly vivid (5)
18 Woollen cap of
Scottish origin (3)
E
T
E
W
H S
O
R
I

4
4

F A I R F A R O F F
I A L I L
S O O T B A Z A A R
C I O T
A U T O N O M O U S
L I H G F
S T E P M O T H E R
H W E I
C A M E R A M A C E
V R I P N
S E L D O M T E N D
6 9 8 9 4 4 9
2 7 1 6 1 1 8
4 2 1 5 4 2
1 6 7 5 8 9 5 7
2 8 5 4 9 7 6 3 1
3 2 7 4 1
1 7 4 3 8 6 5 2 9
7 8 9 6 5 2 3 1
9 6 1 9 7 6
3 6 4 2 3 1 7
1 2 8 3 8 4 9
4
4
4
4
4
4
4
4
4
The nine-letter word was
CRUMPLING
IN BRIEF
Rooney denies United exit talk
nFOOTBALL: Manchester United
striker Wayne Rooney has dismissed
reports that he could be set to leave
the club as absolute rubbish. He
said via Twitter: Read the nonsense
in the papers and heard what people
have to say. absolute rubbish
#heretostay [sic].
Stoke made 5m bid for Adam
nFOOTBALL: Stoke had made a 5m
bid to sign Liverpool midfielder
Charlie Adam. The midfielder is no
longer wanted by manager Brendan
Rodgers. Jay Spearing is also
expected to leave the club.
Blackburn move for Rhodes
nFOOTBALL: Blackburn are today
expected to sign Jordan Rhodes from
Huddersfield for 8m.
Wasps takeover imminent
nRUGBY UNION: Wasps chairman
Mark Rigby has confirmed he expects
the sale of the club to a consortium
headed by former player Ken Moss to
be completed imminently.
Harrington eyes 2014 Ryder Cup
nGOLF: Padraig Harrington says he
will play hard to make Europes
Ryder Cup team in 2014.
BRITISH No3 Laura Robson last night
secured the finest victory of her
promising career to defeat Kim
Clijsters 7-6 (7-4,) 7-6 (7-5) at the US
Open to advance to a third round tie
with Chinas Li Na.
It took 126 minutes for Clijsters to
fall but in achieving such an aston-
ishing victory, Robson highlighted a
potential that suggests she possesses
the necessary mental strength
required to maximise her natural
technical ability and continue to
improve her promising game.
It was such a good atmosphere,
said Robson after eliminating the
three-time champion. I didnt
have any expectations going
into the match because shes
such a good player and
so experienced.
Ive had so many tough
matches against top players
that I knew the level was there,
I just had to keep it for the
whole match.
Shes been such
a great player for
so many years
and a role
model for all
the younger
Robson rises as
Clijsters falls at
the US Open
girls coming up and it was so nice
coming on tour with people like Kim
to look up to.
That Robson is the world No89 goes
only some way to underlining the
impressive nature of her victory; in
world No25 Clijsters she faced not
only one of the most decorated play-
ers of the modern era and one that
not lost in this grand slam since 2003,
but an incredibly determined individ-
ual who played with the knowledge
that this Major was her last.
At 5-3 up in the opening set,
Belgiums Clijsters, who had already
decided to retire at the tournaments
end, appeared to possess a significant
advantage but it was from here
that Robson improved to play
with a freedom she had previ-
ously not shown.
The Londoner became
more ambitious with her
shot selection to break
Clijsters serve before producing
an array of forehand and back-
hand winners from every
inch of the court to
take the first set on a
tie break.
In a similar posi-
tion in the second,
Robson then showed
both drive and com-
posure to earn three
match points and
win with a back-
hand that Clijsters
sent long.
City could face Juve, Real and Dortmund
THE group stage draw for this
seasons Uefa Champions League
will take place today, with the 32
teams allocated into four pots
based on their Uefa coefficient.
All 32 teams will be drawn into
eight groups of four, but teams
from the same country and same
pot cannot be drawn against
each other.
Given Premier League winners
Manchester City are in pot two,
they face the prospect of being
drawn against the champions of
Spain, Italy and Germany
respectively Real Madrid, Juventus
and Borussia Dortmund from pots
one, three and four.
As last seasons winners, Chelsea
are automatically included in pot
one and will consequently avoid
Barcelona, Real, Bayern Munich,
Manchester United and Porto,
though the possibility remains of a
group stage meeting with Frances
Paris St-Germain, now managed by
former Blues boss Carlo Ancelotti.
Celtic last night beat
Helsingborgs 2-0 to secure their
own qualification.
FOLLOWING last nights opening
ceremony, the London 2012
Paralympic Games today begin with
Great Britain targeting a total of 103
medals that wheelchair
basketball player Helen Turner
believes the home crowd can
significantly influence.
Turner is today likely to
feature for Great Britains
women against Holland
yet for all of her
experience London
2012 is her third
Games she is
highly excited about
competing in London and in a team
that hopes to top the tally of 102
medals won four years ago in Beijing.
It will be extremely special, said
Turner (below left). We know they
will get behind us. It gives us that
extra bit of confidence that we need
on the court.
It will be nerve-wracking but I
think the trick is to look at the
crowd, absorb it, and then forget
it. We just have to do our jobs and
enjoy the crowd when we need.
We played the best in the
world and teams ranked
higher [in the World Cup].
That preparation is
brilliant.
BY DECLAN WARRINGTON
BY JEORGE BIRD
SPORT
24
cityam.com
Turner: Home support will be crucial at London 2012
Cycling
n British cyclists will be in action at
the Velodrome, with Sarah Storey
participating in the individual C5
pursuit final as she seeks to secure the
eighth gold medal of her career
Powerlifting
n Anthony Peddle, in his seventh
Games, participates in the mens 48
kg event at the ExCel from 3pm
Wheelchair basketball
n Britains men face Germany in the
evening after the women have taken
on Holland
Equestrian
n Four of Britain;s five riders get their
Paralympic campaigns underway
Goalball
n Britains men face Lithuania, while
the womens team face China
Table tennis
n Sue Gilroy begins her latest attempt
to win her first medal, with
preliminaries getting underway
Judo
n World and European 60kg
judo champion Ben Quilter begins
his campaign to win a gold
medal
TODAY AT THE GAMES
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Laura Robson is scheduled to meet Chinas Li Na in the third round of the US Open
Pot One
n Chelsea, Barcelona, Real Madrid,
Manchester United, Bayern Munich,
Arsenal, Porto, AC Milan
Pot Two
n Valencia, Benfica, Shakhtar Donetsk,
Zenit St Petersburg, Schalke,
Manchester City, Braga
Pot Three
n Olympiakos, Ajax, Anderlecht,
Juventus, Paris St Germain, Galatasaray
Pot Four
n Borussia Dortmund, BATE Borisov,
Dinamo Zagreb, Malaga, Montpellier, FC
Nordsjaelland
Late qualifiers*
n Celtic, Lille, Spartak Moscow, CFR
Cluj and Dynamo Kiev
LIKELY CHAMPIONS LEAGUE DRAW STANDINGS
Results
Kim Clijsters
has won the US
Open on three
occasions
*Qualified last night; yet to be given pots
INCOMING Test captain Alastair
Cook admits he was shocked by
the sudden nature of Andrew
Strausss retirement from cricket.
One-day skipper Cook only
heard the news on Tuesday
evening, with the rest of his 50-
over colleagues, after his sides
defeat to South Africa in
Southampton.
It was a sad dressing room
when we found out, he said. It
was sudden news and we have all
seen Straussy as our leader, me
included. We have such huge
challenges to come, India away
and two Ashes series, so we have
to move on quickly. That is the way
sport goes.
Essex opener Cook, 27, said he
now planned to join England
chiefs in discussing whether exiled
batsman Kevin Pietersen had an
international future.
Ive been on the outside for a
lot of the saga but the issue hasnt
changed, he said. Clearly Ill get
involved over the coming weeks
but this will happen behind closed
doors before we can move on.
Strauss said Cook was the right
man to help refresh a Test side
who last week lost its No1 ranking,
adding: This is a great way for us
to do that. Alastairs going to
come in and instil a huge amount
of energy.
New captain
stunned by
Strauss exit
TWO-TIME Ashes-winning England
captain Andrew Strauss brought an
abrupt end to his reign yesterday, but
insisted his sudden retirement from
all cricket had been driven by his
own struggles as a batsman rather
than the dark shadow cast by anoth-
er, Kevin Pietersen.
Strauss, who had made just one
Test century since November 2010,
said he preferred to step aside for
Alastair Cook before questions over
whether he still
merited his place
in the team grew
louder and while
the 35-year-olds tri-
umphs remained
fresh in the memory.
His 100th and
final Test, last weeks
s er i es - c l i nc hi ng
defeat to South
Africa, was
p l a y e d
a m i d
the distraction of Pietersens enforced
exile from the England set-up, yet he
maintained his differences with the
Surrey star had not in any way
influenced his decision.
Its a very tough decision. The driv-
er to it all quite frankly was my form
with the bat. In truth I havent bat-
tled well enough for a long time
now, Strauss said.
I think for a captain to perform
his role properly, its important
youre not a passenger in the side, but
also that people arent speculating as
to whether you should be in the side
or not. I think that would have been
too big a distraction to the side
going forward.
Ive been speaking about it for a
while. I first spoke to [England
coach] Andy [Flower] about it prior
to the Kevin Pietersen incident rear-
ing its head it just hasnt been a
consideration at all. I said was
FULHAM last night joined the
accelerating race for
Manchester Uniteds Dimitar
Berbatov after confirming
the sale of 15m Moussa
Dembele to Tottenham.
The arrival of Robin van
Persie at Old Trafford has
further diminished
Berbatovs ranking within
a strikers hierarchy in
which he was already
fourth choice, and
though he yesterday
appeared on the verge of signing
for Serie A champions
Juventus, Fulham could yet
persuade him to remain in
England and return to
London to be reunited with
manager Martin Jol.
It was under Jol and
at Tottenham that
Berbatov produced
possibly the finest
form of his
career and while
Fulham have also enquired about
West Ham midfielder Mark Noble
and Lyon striker Bafetimbi Gomis,
the potential arrival of Berbatov is
the one that would significantly
compensate for the loss of
Dembele and that of Clint
Dempsey who is expected
to follow.
Former United midfielder
Kieran Richardson, of Sunderland,
is also thought to be close to
agreeing a transfer to Fulham, but
they will regardless require
further recruits if they are to
remain competitive.
ARSENAL winger Theo Walcott
appears set to remain at the club for
at least this summer following
productive talks with manager
Arsene Wenger.
Less than a year remains on
Walcotts contract but despite his
rejection of a five-year, 75,000-a-
week contract on Friday, Arsenal
believe he wishes to stay and only a
potential offer from Manchester City
appears capable of testing both the
players desire to stay at the club and
Arsenals intention to keep him.
Wenger and Arsenal are
convinced that Walcott wishes to
remain with them and it is that that
has persuaded them that his sale is
not necessary after previously
believing that they should consider
his departure if a new contract had
not been agreed before now.
The England international, 23, is
expected to have further talks with
Arsenal as the week progresses, with
both parties keen to finally settle his
long-term future and the club
particularly keen to avoid the
possibility of him leaving for free at
the end of the season.
The potential loss of Walcott
would have ultimately represented
another major disappointment for
Wenger after a year in which Robin
van Persie, Cesc Fabregas, Alex Song
and Samir Nasri have all left.
26
SPORT
cityam.com/sport
BY FRANK DALLERES
BY FRANK DALLERES
Dimitar Berbatov is
wanted by Juventus
@cityam_sport
We DONT
need to talk
about Kevin
considering it and would talk to him
at end of the [South Africa] series. By
the time I spoke to him again my
mind was made up and I think he
knew that.
Strauss acknowledged that
Pietersen text messaging
friends in the South
African team with dis-
paraging comments
about him had creat-
ed a difficult issue
and refused to be
drawn on whether
his departure would
make it easier for
Pietersen to return.
The Middlesex opener
called his retirement a hugely
sad moment but said the South
Africa series, in which a 2-0 defeat
would see England lose their No1 Test
ranking, had long been earmarked as
a crossroads moment.
Strauss, who took over as skipper in
2009 following Pietersens own ill-
fated spell, led England in 50 Tests
and enjoyed a win rate of 48 per cent,
second only to Michael Vaughan. He
retained the Ashes with victory in
Australia last year, a moment he
described as the highlight of his 14-
year career.
As a batsman he scored 7,037 Test
runs at an average of 40.91, with 21
centuries, placing him ninth on
Englands all-time list. He also
won 124 one day internation-
al caps, hitting six tons, and
four Twenty20 caps.
England Cricket manag-
ing director Hugh Morris
reiterated that talks with
Flower and Pietersen would
take place in due course, with
a view to a possible rapproche-
ment. He added: We are where we
are and we will be seeking those dis-
cussions and they will be behind
closed doors.
Strauss, who made his England
debut in a 2003 ODI, said he would
love to stay in the game, although
in what capacity Ive no idea,
adding that he would seek out more
challenges and had some things Id
Strauss quits ALL cricket but insists row
over Pietersen did not affect decision
Walcott willing to remain with
Arsenal after talks with Wenger
PRE-ASHES SCHEDULE
n Following the ongoing one-day
series with South Africa and next
months World Twenty20 in Sri Lanka,
Alastair Cook has two tours with which
to prepare England for next summers
Ashes defence
n Cooks Test captaincy will begin in
November with a four-match series in
India, followed by five one-day games
and two Twenty20s
n England then travel to New Zealand
for three Tests, ODIs and T20s before
facing the same opponents at home in
May and June, in two Tests, three ODIs
and a T20 match
48%
England win rate
with Strauss as
captain
Kevin Pietersen is not
involved with England
Fulham fight for Berbatov as
15m Dembele departs for Spurs
27
Roy Hodgson will today name his squad for Englands World Cup
qualifiers against Moldova and Ukraine. Wayne Rooney is injured
and John Terry is a doubt, but Steven Gerrard is expected to return
cityam.com
FOUR OF LONDONS AVIVA
PREMIERSHIP RUGBY TEAMS,
ONE SPECTACULAR DAY
TWICKENHAM STADIUM 1 SEPTEMBER 2012
IN ASSOCIATION WITH
2 GAMES, 1 TICKET
CALL 0844 847 2492 OR VISIT TICKETMASTER.CO.UK
TICKETS AVAILABLE FROM 20
V V
W
HEN Andrew Strauss took
over as captain he
inherited an England team
in a desperate state,
following the fiasco of Peter
Mooress and Kevin Pietersens
departures. Now, as he leaves, the
team is in much better health, and
for that he deserves great credit.
His decision to retire is terrific,
because the temptation to stay on
for another two Ashes series must
have been great. But for 18 months
it has been apparent that one of the
major challenges facing England
was finding a replacement for
Strauss as the opening batsman.
Clearly you dont arrive at such a
huge decision on the spur of the
moment, so Strauss will have been
thinking about when to retire for
some time. The controversy
surrounding Pietersens omission
and his relations with Strauss can
only have placed a greater strain
on his mind, but I do not think it
had a decisive effect on such a
profound call.
Strauss spoke of going out on a
high and, while is is hard to call it
that when England have just lost
their No1 Test ranking, the timing is
good, because the next few months
could be a very tricky spell for the
team. In fact, my hunch is that this
had more bearing on his decision to
retire than the Pietersen issue.
England have come unstuck on
the subcontinent enough times to
know that the winter tour of India --
Alastair Cooks first as Strausss
successor -- will be a very stern
challenge. The opponents for the
following Test series, New Zealand,
may be less daunting but will have
home advantage, so should not be
taken lightly. Beyond that it is the
Ashes, and you can be quite sure
that Australia are going to be well
up for it.
Cook is certainly the right man to
pick up where Strauss left off; like
his predecessor, he has the respect of
his team-mates and the opposition.
Fortunately, he also has good
bowlers at his disposal.
Cricket captains can only be as
good as their bowling attacks, and
Strauss was lucky to have James
Anderson, Graeme Swann and
Stuart Broad.
The slight concern I have about
Cook is over his own batting. Some
batsmen thrive on the captaincy and
it lifts their performance; for others,
it seems to be a burden that inhibits
their play.
With Pietersen exiled
indefinitely even after this I cant
see him making a quick return to
the fold -- and Strauss retired,
England are shorn of two of their
most experienced and dangerous
batsmen. Suddenly Cook is not
just the captain but also the
batting kingpin; I just hope the
first magnifies his effectiveness as
the second.
Andy Lloyd is a former England Test
cricketer. An opening batsman, he
captained Warwickshire in the late 80s
and early 90s, leading them to success in
the 1989 NatWest Trophy. He made a
total of 17,211 first-class runs, including
29 centuries, and later enjoyed a spell as
chairman of Warwickshire.
CRICKET
COMMENT
ANDY LLOYD
Cook could be in for a rough
start as Englands new leader
n Middlesex debut in 1998, scoring
83 in his maiden first class innings
n Makes England debut in 2003 ODI
against Sri Lanka, scoring just three
in defeat in Dambulla
n Scores 112 and 83 on Test debut
against New Zealand in May 2004
n Two centuries help England to
win the 2005 Ashes series
n Stands in as captain for 5-0 ODI
whitewash of South Africa and Test
series win over Pakistan in 2006
n Dropped fror 2007 winter tour
but wins back Test place in 2008
n Succeeds Pietersen as captain in
2009 and scores 474 runs as
England regain the Ashes
n Retains Ashes in 2011 and leads
England to No1 Test ranking for first
time with series win over India
n August 2012: England lose No1
ranking and Strauss quits all cricket
CAREER MILESTONES
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