Power To The People: City Blasts Euro Boss Over Growth Claims

ON THE DAY THAT YOUTH UNEMPLOYMENT IN GREECE REACHED A SHOCKING 58 PER CENT HIGH
BUSINESS WITH PERSONALITY

In the wake of the nancial crisis, the global fund industry nds itself in a
changed environment. Is it time for a new portfolio investment rulebook?
Stephen Schaefer, Professor of Finance
Investment Management Evening Programmes
Fixed Income Markets and Bond Portfolio Management programme starts 15 January 2013
Visit www.london.edu/imp/ | Email nance@london.edu | Call +44 (0)20 7000 7397 Leading Financial Thinking
I th

h k f th

i l i i th l

b l f d i d t

d it lf i

Steph
chan
In th

, Professor of F hen Schaefer
nged environment.
he wake of the na

Finance
Is it time for a new
ancial crisis, the glo

w portfolio investm
obal fund industry

ment rulebook?
nds itself in a

www.london.edu/imp/
Leading Financial
Thinking
EUROPEAN Central Bank boss Mario
Draghi was under fire yesterday for
claiming the Eurozone economies are
back on track for growth just a day
after the European Commission
slashed its own forecasts for the single
currency area.
Draghi said the troubled currency
areas governments have made great
strides in reforming their economies,
meaning they are poised for recov-
ery but economists disagreed with
his optimistic forecast.
New figures in Greece show more
than a quarter of the labour force are
unemployed, and an astonishing 58
per cent of those aged between 16 and
24 are jobless, showing the countrys
crisis worsening.
I wouldnt have said it a year ago,
but both the Eurozone as a whole and
individual countries have a fundamen-
tal position which is way more bal-
anced than the US, Japan and the UK,
Draghi said, pointing to falling private
debt levels, a better trade position and
falling labour costs although he
noted poor survey data.
This poises the Eurozone for a recov-
ery. It will probably be slow, but it will
be solid, he concluded.
City economists disagreed.
If anything the Eurozone is poised
to remain in the doldrums for even
longer, said Investecs Philip Shaw.
Despite noble attempts by Draghi to
defend the Eurozones prospects, the
outlook is really very different.
Brussels this week slashed growth
forecasts and now expects the econo-
my to grow by just 0.1 per cent in 2013
while unemployment will rise to 11.8
per cent. But the ECB president even
claimed government debt positions
are getting better.
Fiscal consolidation has been amaz-
ing and when we look at other parts
of the world, they have not been so
amazing. Debt to GDP is on the way
down, even in countries with the high-
est ratios, he claimed.
But the ECs studies show that debt
will climb to 94.5 per cent of GDP next
year, and continue to run a solid
deficit into 2014.
And economists said even the ECs
gloomy forecasts may be overly opti-
mistic. The economy is getting worse,
not better a 0.4 per cent contraction
in GDP next year is looking more like-
ly, said BNP Paribas Ken Wattret.
It does sound odd for Draghi to talk
about an improvement when uncer-
tainty is so high and business confi-
dence is falling. Draghis view of
rebalancing and growth is very much
a long-term one.
ALAN BENNETTS NEW PLAY IS A TRIUMPH
BY TIM WALLACE
AMERICAS
FISCAL CLIFF
Mark Littlewood in The Forum Page 26
See Page 28
MORE EUROZONE: Pages 14, 27
L L
Certified Distribution
27/08/12 til 30/09/12 is 128,785
Head of the European Central Bank Mario Draghi celebrated the Eurozones economic promise yesterday but Greek unrest looked set to continue
FTSE 100 n5,776.05 -15.58 DOWn12,811.32 -121.41 NASDAQn2,895.58 -41.71 /$ 1.60 unc / 1.25 unc /$ 1.27 unc
www.cityam.com FREE ISSUE 1,757 FRIDAY 9 NOVEMBER 2012
Bank turns
off the taps
THE BANK of England
yesterday agreed a halt to
quantitative easing (QE) for
November, with economists
warning the policy is close to
running its course.
The Banks monetary policy
committee (MPC) rejected
both a change in rates and
QE stopping asset purchases
for only the third time since
the policy began.
While some analysts threw
cold water on the effectiveness
of QE, many believed the
decision was close-run and
poor data would bring the
Bank back to the policy again.
QE is not a very powerful
tool to boost growth, said
Michael Saunders at Citi. But
he nevertheless expected: The
MPC will resume QE quite
soon, prompted by
disappointing data.
BY BEN SOUTHWOOD
MORE: THE DEBATE, Page 27
L L
POWER TO THE PEOPLE
CITY BLASTS EURO BOSS
OVER GROWTH CLAIMS
nDebt to GDP is
down even in the
countries with
the worst ratios
nEurozone is
poised for
solid recovery
Draghis delusions
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
G4S loses out as coalition
rows back on prison deals
OUTSOURCING giant G4S has lost its
contract to run Wolds prison and
failed to make the shortlist to over-
see several other jails, as the govern-
ment backtracked on plans for more
competitive justice operations.
The Ministry of Justice revealed
yesterday that G4S will hand over
the category C jail in Hull in July
2013 after 21 years in charge, after
failing to convince the government
it could offer a better service than
the state.
Justice minister Chris Grayling
said three other prisons will remain
under state control for the foresee-
able future, despite his department
spending over a year fielding private
sector bids to take them over.
The MoJ has even rejected a bid
from HM Prison Service, in partner-
ship with FTSE 250-listed Mitie, to
operate all six of the jail groups that
were put out to tender. Mitie
declined to comment.
The ministry said that Wolds,
Durham, Coldingley and Onley pris-
ons will be more cost-effective if
they remain run by the state sector.
Andrew Haldenby, director of the
Reform think-tank, said this U-turn
calls into question the govern-
ments whole approach to improv-
ing public services.
The CBI said the decision was real-
Panmure hires team from Matrix
Panmure Gordon has returned to the
investment fund business by hiring a team
from Matrix Corporate Capital, as the
broker seeks to build on its return to
profitability without inflating its cost
base. Most of Matrixs existing investment
funds team, which includes market
makers, specialist analysts and sales
people, will join Panmure next week.
Phillip Wale, Panmures chief executive,
said he would continue to focus on fixing
broken parts of the business.
Qualcomm vies with Intel
Intel, the chipmaker that was once a stock
market champion for the technology
sector, was overtaken briefly in market
value by rival Qualcomm in a sign of the
rapidly changing fortunes of the
smartphone and personal computer
industries.
Ghana selling triggers cocoa slide
Cocoa prices fell to their lowest level in
three-and-a-half months as unexpected
selling by a west African producer
prompted selling by investment funds.
Traders said Ghana was seen locking in
profits for the new seasons crop.
Pension promises sinks AEA
An unmanageable pension fund deficit
and disastrous overseas foray have
finished off the ailing privatised arm of
the UK Atomic Energy Agency. AEA
Technology went into a pre-pack
administration yesterday.
Adoboli fabricated defence
The UBS rogue trader falsely claimed
that colleagues knew what he was doing
in an attempt to save himself, a court was
told.
Comet firesale disappoints
Comet has launched its widely anticipated
firesale as administrators move to wind
down the failed retailer ahead of store
closures as early as next week.
IAG makes 113m Vueling offer
International Airlines Group, owner of
British Airways and Iberia, has mounted a
113m (90m) offer to take full control of
Spanish low-cost carrier, Vueling, as it
looks to restructure its loss-making
business in Spain.
Money Funds Plan Falls Flat
A proposal by money funds to safeguard
their industry during times of financial
stressand head off substantial new
regulationsis receiving a chilly
reception from federal regulators.
Orient-Express Rejects Offer
Orient-Express Hotels yesterday rejected
a takeover offer from a rival chain owned
by Tata Group, calling the $1.2 billion offer
deeply unattractive.
ONLINE travel agency
Priceline.com said yesterday it will
buy Kayak Software Corp in a
friendly deal that values the
company at $1.8bn (1.13bn).
Priceline is offering $40 a share
for Kayak, a 29 per cent premium
on the companys closing price of
$31.04 yesterday.
Kayak shares jumped 27 per
cent to more than $39 in extended
trading, while Priceline.com
moved lower.
Daniel Kurnos, an analyst at
Benchmark Company, said the
purchase would let Priceline.com
participate more in the travel
advertising space.
Priceline had previously
addressed that it was having issues
in terms of marketing
efficiencies, he said.
This certainly represents an
investment for them in the paid-
search, or the advertising channel,
which is not an area where they've
historically had a lot of exposure.
But Kurnos added the move also
exposes Priceline.com more
significantly to the volatile air
travel market.
Kayak, which uses a website and
a mobile site to help consumers
compare prices for airlines and
hotels, went public in July with
shares priced at $26. The deal is
expected to close early next year.
Priceline to buy
Kayak Software
in $1.8bn deal
Nick Buckles, chief executive of G4S. The firm is waiting for feedback on what went wrong
2
NEWS
BY HARRY BANKS
BY MARION DAKERS
To contact the newsdesk email news@cityam.com
I
T is time for George Osborne to
start worrying. The Chancellor
will be the biggest loser from the
Bank of Englands right and
proper decision to halt quantitative
easing, at least for the time being.
The biggest problem with QE apart
from its increasing lack of impact
and the pain inflicted upon savers
and pensioners is that it has blurred
to a dangerous extent monetary and
fiscal policy.
The Bank, one branch of the UK
state, purchased around 38bn worth
of gilts across August, September and
October. During that time, the Debt
Management Office, another branch
of the UK state, issued 46.4bn worth
of new gilts. For all intents and pur-
poses, one part of the state was
financing another part of the state, in
a bizarre, almost Ponzi-style scheme
that kept a deluded City happy but
EDITORS
LETTER
ALLISTER HEATH
End of quantitative easing will stop mad monetary recycling
FRIDAY 9 NOVEMBER 2012
has gradually been undermining the
integrity of the monetary system.
The private sector had to absorb just
8bn worth of gilts during that three
month period, while the Bank, in its
new role as the Treasurys top pay-
master, mopped up 82 per cent of the
net issuance. Needless to say, Osborne
took the credit, patting himself on
the back for the lack of a buyers
strike and for the UKs low gilt yields
even though the overwhelming
majority of the budget deficit was
financed by the creation of new
money, not by convincing investors to
part with their cash. There have even
been some periods such as in
August when the authorities
bought more gilts than the Treasury
issued. The end of QE means that this
mad monetary recycling has ended,
at least for now. The 3.5bn raised on
6 November received no support from
the Bank.
Suddenly, Osborne is on his own. He
is going to have to convince private
buyers to hand over real cash from
real pools of savings for his IOUs. We
shall soon find out how he fares in
the brave new world of real budget
constraints, economic rationality and
accountability unless, that is, the
Bank relents in a month or two and
comes running back to his rescue,
like the US cavalry in those old black
and white movies.
allowed to fail, the process of defining
resolution is if anything more impor-
tant than defining regulation, which
is absolutely right.
This last statement alone suggests
that Welby will be at least slightly bet-
ter than the current Archbishop of
Canterbury, who is so wrong, biased
and anti-capitalist that it eventually
became funny. But Welbys obsession
with corporate sin he even wrote a
thesis on it risks blinding him to all
the wealth and prosperity business
creates. People must act ethically, law-
breakers must be severely punished,
bailouts must be banished and the
City reformed but most people and
companies are generally good, not
bad. Endless preaching about sin isnt
going to get the economy growing.
THEOLOGICAL NONSENSE
I cant get excited by the news that
Justin Welby is to become the next
Archbishop of Canterbury. Welby is a
former oil executive who actually
understands derivatives and at least
some financial products, rather than
the usual clueless lifelong theologian,
and is a member of Andrew Tyries
Banking Commission. But just like
Vince Cable, who still dines out on his
time at Shell but whose views on the
economy are wrong-headed, having
spent a few years in the private sector
doesnt mean that Welby is right on
economics.
He recently argued that finance is
the cuckoo in the nest that pushed
all the other fledgling industries out
to die, which is clearly nonsense
empirically and theoretically, and far
too imbued with emotionalism. But
he did also say that all banks must be
ly disappointing, adding: Opening
these services up to the scrutiny of
competition delivers better quality
and value for the taxpayer.
G4S said in a statement it would
meet with officials in the coming days
to hear how its bids fell short.
Prisons minister Jeremy Wright told
the BBC yesterday that G4Ss loss is
no reflection on what they are doing
in prisons that they already operate
and it doesnt mean that they wont
have a part to play in some contracted-
out services, which we think there is
scope for across the prison estate.
The ministry hopes to call for bids to
run some ancillary services such as
catering in the spring.
Contracts to oversee two prison
groups are still up for grabs, with
Serco, Sodexo and MTC with Amey all
shortlisted.
G4S, which came under fire over its
botched Olympics security work, saw
its shares close 3.1 per cent lower.
Analysts said the loss for G4S, while
disappointing, is unlikely to have a
large impact on results at the firm,
which runs five other UK jails but
makes most of its revenue overseas.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
IN BRIEF
Obama to address fiscal cliff
nNewly re-elected President Barack
Obama will make a statement on the
economy today, the White House said,
setting the stage for a showdown with
congressional Republicans over
contentious tax and spending issues.
The president is likely to discuss
looming tax increases and
government spending cuts - the so-
called fiscal cliff that would go into
effect early next year unless Congress
acts to prevent them.
US closes in on tax evaders
nIn a step toward reining in offshore
tax evasion, the US Treasury
Department yesterday said it was
close to finalising tax information-
sharing pacts with countries ranging
from Canada to islands such as
Guernsey and the Isle of Man. Treasury
listed 47 jurisdictions, from India to
Sint Maarten, that are in various
negotiation stages on agreements
governing how their local financial
businesses can meet the US laws.
Bank trade body wants Libor cull
nMost Libor interest rates should be
scrapped by April to restore trust in
what remains of the rigged
benchmark, the British Bankers
Association (BBA) said. It said only 30
of 150 variations of the London
Interbank Offered Rate should stay
under a proposal it published for
consultation. The government has
asked the FSA to make changes to the
benchmark which is used to price
products like home loans.
A FORMER City oil executive widely
tipped to be unveiled as the new
Archbishop of Canterbury this morn-
ing is expected to keep his position
on a Parliamentary commission into
banking standards.
Bishop of Durham Reverend Justin
Welby, an Old Etonian who currently
helps scrutinise banking standards
as part of his role as a member of the
House of Lords, is expected to take
his seat at an evidence session for the
commission on Monday, when the
panel will take evidence from Sir
John Vickers, a Commission
spokesman confirmed to City A.M.
last night.
Reverend Welby, who worked in
corporate finance for two oil compa-
nies in both London and Paris for
eleven years, is set to be announced
as the leader of the worlds 80m
Anglicans by Downing Street this
morning.
Welby is set to succeed incumbent
Archbishop Rowan Williams when
he steps down on 31 December.
The commission is expected to pub-
lish its first report on its scrutiny of
the banking reform bill on 18
Parliamentary
bank probe to
retain Welby
BY MICHAEL BOW
December.
Yesterday, chairman of the
Parliamentary Commission on
Banking Standards Andrew Tyrie MP
backed Welby to stay on in the role,
saying he was making an outstand-
ing contribution.
The commission, which was set up
by chancellor George Osborne this
summer, appointed Welby to the post
to help scrutinise the banking sector
alongside other members of the
House of Lords.
Reverend Welby, who worked for
French oil giant Elf in Paris for five
years before moving to FTSE listed
firm Enterprise Oil for a further six
years, is a vociferous critic of banking
failures during the financial crisis.
Speaking last month, Welby said
pre-2008 financial markets were
exponents of anarchy and financial
services served nothing.
They involved wild and frantic
activity, often by exceptionally intelli-
gent people, working very long hours,
but they had no socially useful pur-
pose, he said.
The Bishop was ordained as deacon
in 1992 with a curacy in Nuneaton
before moving to become the Dean of
Liverpool in 2007.
EXCLUSIVE
BY TIM WALLACE
3
NEWS
cityam.com
SNR Denton set for three way
merger to create legal giant
CITY law firms SNR Denton, Salans
and Canadian outfit Fraser Milner
Casgrain yesterday announced plans
to merge the practices to create the
seventh largest law firm on the
planet.
In an explicit challenge to the
dominance of the Magic Circle law
firms in the City, the new business
will become the biggest energy and
mining sector legal practice in the
world.
The merged company, which is
set to be called Dentons, will also
BY MICHAEL BOW
seek to capitalise on Salans strong
insurance practice by using it to
boost the new firms presence in
the London insurance market.
The merger, which has been in
the works for months, will see the
creation of a 14 membership
executive board led by current SNR
Denton chief executive Elliott
Portnoy, who will remain leader of
the new merged company.
Describing the deal as a game
changer, management said more
practices in Canada could follow
the firms lead to merge with
outfits in the US and UK in future.
Portnoy told City A.M.: All three
firms know and respect each other
well and we all have shared clients.
The merger is a result of our
conversations.
Joe Andrew, currently SNR
Dentons global chair, added: We
are the challenger brand.
We are challenging the elite and
as the biggest newcomer we are
obviously defined as being
different.
The firms are set to put their
proposals to a vote of their partners
next week and will become active in
the first quarter of next year.
BANKS advising the government on
the industrys new ringfencing
rules are misleading regulators on
the kind of products small firms
want, and wrongly promoting
inappropriately complex products,
a leading campaigner told City A.M.
Small firms only want a handful
of very basic products, and nothing
else should be within the ringfence,
the Federation for Small Businesses
argues not the derivative
products which banks want to put
in the retail arms.
There is quite a lobby from
banks for simple derivatives to be
Small firms attack banks push
for widest possible ringfence
in the ringfence, but I have yet to
find a simple derivative product,
said the FSBs Priyen Patel.
He accused banks of claiming
SMEs want to be able to buy every
product, including derivatives,
through their local bank branch
something they cannot do now,
even without a ringfence.
Instead, the FSB wants
commercial deposit accounts,
loans, credit cards, overdrafts and
possibly merchant services to be
the only business products within
the retail entity.
If anything more complex is
within the ringfence, Patel warned,
it could lead to normal SMEs cross-
subsidising the riskier services.
Bishop of Durham Justin Welby is expected to be announced as the new Archbishop
INSURANCE giant Aviva yesterday
said it will sell its struggling US
business at a substantial discount in
order to ensure its radical turnaround
plan remains on track.
Executive chairman John
MacFarlane confirmed that the sale of
the Iowa-based business is on the hori-
zon and said it is set to fetch far less
than its 2.4bn book value. Aviva says
this is justified because it will release
reserve capital to support other divi-
sions. The firm also confirmed that
advisers have been appointed to work
on the sale of eight other units.
MacFarlane took over in May after
irate investors forced out former chief
executive Andrew Moss following
years of share price declines. He
immediately set about trying to revi-
talise the British firm by announcing
plans to withdraw from at least 16 of
the firms 58 businesses and remov-
ing layers of middle management.
In yesterdays announcement he
Aviva to sell US
unit at discount
to boost revival
BY JAMES WATERSON
said that in the process he had
encountered a culture that was more
used to collective decision making
and had more bureaucracy than
desirable. Meanwhile the search for a
new chief executive is now well
advanced with the final interviews
underway.
Barrie Cornes, an analyst at Panmure
Gordon, called Aviva a work in
progress but said it is compelling at
the current valuation. This is despite
the firm announcing a five per cent
drop in sales so far in 2012.
Samsung overtakes Apple as
Galaxy S3 becomes a bestseller
SAMSUNGS Galaxy S3 overtook
Apples iPhone 4S to become the
worlds bestselling smartphone in
the third quarter of the year,
according to research firm Strategy
Analytics.
Samsung shipped 18m of its
flagship model, compared to the
iPhone 4Ss 16.2m. This was partly
due to the fact that the latest
version of Apples device, the
iPhone 5, was introduced at the
end of the quarter. Apple shipped
BY JAMES TITCOMB 6m iPhone 5s in the period,
according to the research, meaning
that the combined figure for the 4S
and 5 was 22.2m. Even with this
caveat, it is the first time in years
that Apple has not had the top
selling model, demonstrating
serious competition from Samsung.
We expect the new iPhone 5 to
out-ship Samsungs Galaxy S3 in
the coming fourth quarter, Neil
Mawston of Strategy Analytics said.
Apple should soon reclaim the
title of the worlds most popular
smartphone model.
The news demonstrates the
continued rise of the Korean
company, which last year overtook
Apple to be the worlds biggest
smartphone manufacturer by sales.
The Galaxy S3 accounted for 11
per cent of all smartphone
shipments in the third quarter,
according to the research.
Total smartphone sales were
167.8m, up from 152.8m in the
previous quarter, even as the
number shipped was somewhat
subdued as people waited for the
launch of the iPhone 5.
Apple chief executive Tim Cook should see the iPhone 5 retake the lead in the next quarter
Aviva PLC
8Nov 2Nov 5Nov 6Nov 7Nov
337.5
335.0
340.0
342.5
332.5
330.0
p
330.30
8Nov
CREDIT rating agency Standard &
Poors (S&P) yesterday downgraded
its outlook on Lloyds TSB to
negative from stable, citing the
additional 1bn provision for
payment protection insurance (PPI)
mis-selling claims which the bank
made at last weeks third quarter
results.
S&P said the additional provision
makes it likely that Lloyds will see a
pre-tax loss for this year, and only a
modest profit next year. S&P said
this would prevent it revising its
assessment on Lloyds capital and
earnings to adequate from
moderate over the next year.
Despite the outlook downgrade,
S&P kept Lloyds credit rating at A
and said the bank had made
S&P revises Lloyds TSB rating
outlook due to profit forecasts
significant progress in repairing
its balance sheet.
The negative outlook on Lloyds
indicates a one-in-three chance that
its rating may be lowered over the
medium term (six to 24 months).
Rival banks including HSBC,
Barclays and Santander are also
currently on negative outlook with
S&P.
S&P put Barclays on negative
outlook in July citing strategic
uncertainties following Bob
Diamonds departure.
We are disappointed by this
change in outlook given the
excellent progress we have made in
de-risking and strengthening our
balance sheet. We would emphasise
that S&P has affirmed Lloyds
current ratings, said a
spokeswoman for Lloyds.
4
NEWS
cityam.com
www.blancpain.com
BLANCPAIN BOUTIQUES ABU DHABI BEIJING CANNES DUBAI EKATERINBURG GENEVA HONG KONG MACAU MADRID MANAMA
MOSCOW MUMBAI MUNICH NEW YORK PARIS SEOUL SHANGHAI SINGAPORE TAIPEI TOKYO ZURICH
0845 273 2500
Villeret Collection
Complete Calendar Half-Hunter
Patented under-lug correctors
Secured calendar and
moon-phases mechanism
Ref. 6664-3642-55B
BY KATIE HOPE
BANCO Popular Espanol, the Spanish
lender that is seeking to raise as
much as 2.5bn (2bn) in a make or
break share sale, has appointed STJ
Advisors, the London-based equity
advisory group, to advise on the deal.
The Spanish bank is believed to have
hired STJ to help it draw up a syndi-
cate of banks but some say the
appointment has caused friction
because STJ is known for seeking
a lot of investor information the
banks deem to be time-consuming
to provide.
STJ was one of the equity advisers to
the controversial IPO of Bankia.
Several months after the share issue,
Bankia was nationalised, leaving
many outraged shareholders out of
pocket. Reports last night suggested
that Banco Popular plans to hire
at least 10 banks to guarantee the
offering.
Banco Santander, Deutsche Bank
and JP Morgan will probably run the
sale. Over a dozen other banks have
been approached, including Bank of
America Merrill Lynch, Citigroup.
and UBS.
Popular, Spains sixth-largest lender,
should announce the names of
underwriters today. The bank needs
to raise the extra funds to avoid being
nationalised after failing a stress test
earlier this year.
Banco Popular
appoints STJ to
key rights issue
BY DAVID HELLIER
THE SALE of Greek lender Geniki
wiped out Societe Generales profits
in the third quarter, according to the
French banks financial results pub-
lished yesterday.
Profits plunged 86.3 per cent to
85m (67.8m), from 622m in the
third quarter of 2011. That takes prof-
its for the year to date to 1.25bn, 45.3
per cent below the 2.285bn recorded
in the same period of last year.
Much of that hit came from the sale
of the banks Greek unit Geniki to
Piraeus Bank, on which it made a loss
of 130m.
The sale of US-based fund manage-
ment unit TCW also cost the group
92m.
And financing and advisory profits
took a tumble, falling 21.9 per cent
from 616m to 481m.
But Societe Generale managed to
record strong growth in its invest-
ment banking profits, as market sen-
timent and activity levels improved.
The global markets arm saw profits
SocGen profits
demolished by
Greek writeoff
BY TIM WALLACE
boom 98.4 per cent to 1.252bn.
That was made up of 575m in equi-
ties, and 678m from fixed income,
currencies and commodities which
skyrocketed from 159m a year earlier.
Analysts said this shows the group is
stronger than headline profit suggests.
This slender profit fell short of ana-
lyst expectations, said Daiwa Capital
Markets Michael Symonds.
However the bottom line result was
impacted by numerous one-off and
non-operational items during the
quarter. When restated for these items
performance was more resilient.
WAS THE BOE RIGHT TO HOLD
INTEREST RATES AND QE?
Interviews by Alex Croell
No. I dont think its right. I think
for the economy to function
correctly interest rates should be kept
around four per cent.
These views are those of the individuals above andnot necessarily those of their company
CHARLES DAVIES
DBS VICKERS
I dont know. Whatever you do with

the interest rates, it wont change
the economy.
TERAS ULAKHOVICH
BARCLAYS CAPITAL
I dont know. The big question is
how it is going to be paid for,
because there is only so much money the
Bank of England can print.
JOHN STAMPER
JUDICIUM
Market doubts Commerzbank

shakeup will boost prospects
GERMAN lender Commerzbank
swung back to profits in the three
months to September, with
commission income growing,
according to figures published
yesterday.
The bank made a profit of 78m
(62.2m) in the quarter, compared
to a loss of 687m a year earlier.
Commerzbank said it will invest
2bn by 2016 to refocus on areas
BY TIM WALLACE
like the private customers business
and the SME unit.
But the banks long-term growth
strategy was branded flawed by
disappointed analysts.
Commerzbank hopes to grow its
way to efficiency (targeting flat
costs but a big drop in the cost-
income ratio) which you cannot do
in the current environment;
therefore it will fail, said
Berenbergs Nick Anderson.
CITYVIEWS
Societe Generale
25.75
25.50
26.00
26.25
25.25
25.00
24.75
25.00
8Nov
Commerzbank
1.50
1.45
1.55
1.60
1.42
8Nov
THE FRENCH and Belgian
governments agreed to pump
billions more into bailed-out bank
Dexia yesterday, after a year of
wrangling with the European
Commission over how best to
manage the lender.
The states also arranged an
85bn (67.8bn) liquidity guarantee,
on top of the 5.5bn capital hike.
Belgium will put in 53 per cent of
the aid, with France providing the
rest. That represents a shift from
the original even split, costing the
Dexia gets a new capital boost
from French and Belgian states
BY TIM WALLACE Belgian government an extra
165m on the initial plan.
But the government is thought to
be pleased with the deal, with its
share of the guarantee being 10bn
smaller than initially envisaged.
The latest credit injection came
as the groups net asset position
turned negative as the value of a
French unit tumbled.
The announcement came as the
bank reported a third-quarter loss
of 1.23bn, largely due to bad
loans, the writedown on asset sales.
The deal was in part arranged by
UBS, Belgiums sole advisor.
5
NEWS
cityam.com
Administrator Karel De Boeck said running down Dexias assets will take decades
US investment firm Carlyle Group
yesterday swung into the black in the
third quarter after firing on all cylin-
ders to boost fundraising, investor
returns and carry fund values.
The Washington DC based compa-
ny, which previously owned Dunkin
Donuts in the US and Le Figaro news-
paper in France, posted a three per
cent increase in returns for its invest-
ment funds for the quarter, led by
strong performance from its buyout
activities.
This helped boost economic net
income, a measure of profitability
for alternative investors, up to $219m
(137m) for the third quarter, better
than the second quarter, when it
posted a $57m loss.
It also planted in the ground
$1.6bn of new cash from investors in
86 new investments across some 24
of its funds and harvested $5.1bn
from 117 different investments to
give back to investors.
Bucking the tough fundraising
environment, Carlyle also raised an
extra $3.4bn for its funds from
investors for the quarter. This took
the total to $9.4bn for the year to
date.
The private equity group, which
floated on Nasdaq in May, said it was
very confident of the future direc-
tion of its business.
Rise in value of
assets boosts
Carlyles profit
BY MICHAEL BOW
Investors are coming back into the
market, co-founder David
Rubenstein said. They recognise
alternative investments probably pro-
duce better returns than any other
kind of investment.
But nobody is making commit-
ments overnight that would welcome
a fundraisers heart.
Carlyle Group, which was founded
in 1987 by Rubenstein, William
Conway and Daniel DAniello and is
headquartered on the same avenue as
the White House in Washington DC
this week also announced it had
raised $1.1bn for its new Carlyle
Equity Opportunity Fund.
Rubenstein said the days of mega-
funds made up of $10bn to $20bn of
commitments were over.
US funds today will be smaller, he
said. That is a major change in the
industry. Now if you have a good fund
you raise a successor that is smaller.
RSA relies on emerging markets as
European sales continue to struggle
THE PARENT company of insurer
More Than yesterday announced
flat sales of 2.7bn in the UK and
western Europe, where it has been
forced to do less business in the
hope of remaining profitable.
But RSA said its performance in
emerging markets including Latin
America, Asia and the Middle East
is a cause for optimism.
Net premiums from developing
countries hit 887m for the first
nine months of 2012, up 15 per cent
BY JAMES WATERSON
at constant exchange rates.
Our unique geographic footprint
gives us exposure to some of the
most attractive insurance markets
in the world, said chief executive
Simon Lee.
He admitted the UK market
remains challenging but said
we have delivered growth across
all business lines except motor.
Worldwide premiums rose
by four per cent to hit
6.2bn, with year-end
investment income
expected to be 500m.
The groups combined operating
ratio a measure of underwriting profit
that compares total premiums against
total costs is expected to be a healthy
96 per cent at the end of the year.
But Kevin Ryan, an analyst at Investec,
said the firms stock is already fully
valued: A mixture of competitive
insurance rates and poorly-performing
economies means that RSA will continue
to struggle to grow its top line.
Carlyle Group LP
26.40
25.60
26.00
$
25.42
8Nov
Simon Lee said RSA is pleased with new
acquisitions in Canada and Argentina
LLOYDS of London insurer
Lancashire Holdings said yesterday
that premium rates will be
squeezed in January and
expressed surprise at the
optimism exhibited by some of its
rivals.
Nonetheless a quiet third
quarter, largely unaffected by
major catastrophes, enabled the
Lancashire Holdings warns of
premium pressure in January
BY JAMES WATERSON
firm to announce a special
dividend of around 56p a share
with a total payout cost of $145m
(90.6m). Profits for the period
stayed relatively flat at $78m.
The company is confident it can
absorb any impact from Hurricane
Sandy but warned investors that it
will have to wait for final figures.
It is simply too early to provide
any meaningful estimate for
reserves, said CFO Elaine Whelan.
6
NEWS
cityam.com
SWISS RE has become the third
reinsurer this week to unveil
expectation-busting profits,
following yesterdays announcement
that net income rose 62 per cent in
the third quarter.
European rivals Hannover Re and
Munich Re have already raised their
targets for 2012 following a year
characterised by surging investment
income and an absence of large
payouts. Reinsurers provide
additional cover for primary
insurers and their profitability
relies heavily on the absence of
major catastrophes such as last
years Tsunami in Japan and New
Zealand earthquake.
Swiss Re said profits were $2.2bn
(1.4bn) for the three months
between July and September,
smashing analysts forecasts of
$1.4bn. As a result the company
may choose to return some of the
money to shareholders.
If we are unable to find
opportunities that meet our return
expectations, we would look at
further measures to return excess
capital, such as a special dividend,
said George Quinn, Swiss Re CFO.
Third-quarter premiums rose 11
per cent year-on-year to $6.6bn and
the firm said steeper demand
following Hurricane Sandy could
help push up premiums in the
crucial January renewal period.
Swiss Re joins
reinsurance
profit bonanza
BY JAMES WATERSON
JP MORGAN Chase & Co revealed yes-
terday that US regulators have
approved a plan for the bank to use its
capital to buy back as much as $3bn
(1.87bn) of its stock in the first
quarter of 2013.
The company also disclosed that it
has reached an agreement in princi-
ple with the Securities and Exchange
Commission (SEC) to resolve two previ-
ously-disclosed investigations related
to mortgage-backed securities.
JP Morgan had suspended buybacks
in May and submitted a new capital
plan to the Federal Reserve in August
after containing its London Whale
derivatives losses at about $6.2bn.
The Fed told the bank on 5 November
that it had approved the plan, JP
Morgan said in a quarterly filing to the
Securities and Exchange Commission.
The losing derivatives positions were
disclosed by JP Morgan on 10 May,
more than a month after reports sur-
faced in the credit markets that Bruno
Iksil, a London-based trader for JP
Morgan known as the London Whale,
had made massive bets in credit
markets.
JP Morgan can
start buybacks
post Whale loss
BY HARRY BANKS
The approved plan provides for JP
Morgan to continue paying its current
quarterly dividend on common stock,
the filing said.
Chief executive Jamie Dimon told
investors on 21 May the bank had sus-
pended repurchases of its stock to
rebuild its capital and meet higher
requirements for financial safety.
Under restrictions imposed after the
financial crisis, JP Morgan and other
big banks cannot buy back stock or
increase their dividends without
approval from the Federal Reserve.
The company did not provide an esti-
mate of how much the settlements
with the SEC over mortgage securities
could cost.
JPMorgan Chase & Co
42.50
40.50
41.50
43.50
$
40.40
8Nov
CHINAS outgoing President
yesterday talked down the prospect
of political reform as he prepared
to hand over the reins of the
countrys ruling Communist Party.
Hu Jintao said in a party summit
speech that the worlds second-
largest economy has held high the
great banner of socialism with
Chinese characteristics and neither
taken the old and rigid closed-door
policy nor taken the wrong path of
changing the banner.
He said China should deepen
the form of state-owned
enterprises but pointed towards
Chinese leader cheers growth
but talks down possible reform
BY MARION DAKERS making the renminbi exchange
rate more market-based.
Hu added in a two-hour speech
that Chinese firms should speed up
international expansion, following
the likes of CNOOC in making
global acquisitions.
He also issued a stark warning
against the corruption that has
dogged his party, most recently in
the expulsion of Bo Xilai, once
tipped as a leadership candidate,
amid allegations he hushed up his
wifes murder of British
businessman Neil Heywood.
Hu will be replaced by Vice
President Xi Jinping at the close of
the Communist Party congress.
7
NEWS
cityam.com
Hu Jintao will step down as general secretary of the Communist Party next week
CREDIT data firm Experian is to spend $110m
(69m) on a restructuring programme aimed at
reducing costs and increasing its focus on key
markets.
Chief executive Don Robert said the company,
best known for running consumer credit checks
for banks and retailers, expects the initiative to
result in annual savings of about $75m.
Experian, which reported six per cent growth
in underlying pre-tax profit in the first half, will
increase its use of off-shore facilities, reduce its
exposure to lower-growth activities and lower its
fixed costs relating to facilities, technology and
infrastructure, Robert said.
Experians underlying pre-tax profit of $563m
in the six months to 30 September was ahead of
the $561m expected by analysts in a company
poll. Experian said it expected to achieve high
single-digit organic revenue growth for the full
year.
Experian to invest
$110m as restructures
in bid to cut spending
BY CITY A.M. REPORTER
FALLING domestic traffic and rising costs have sent
regional airline Flybe to a half-year loss, the firm
announced yesterday.
Group revenues were broadly flat at 340.6m but
cost pressures have sent it to a pre-tax loss of 1.3m
for the first half of the year, compared to a profit of
14.8m a year ago.
The continuing challenges of the UK domestic
aviation market further validate the importance of
our decision to focus Flybes long-term strategy on
rebalancing our route network by growing our
European operations, said the airlines chairman
and chief executive Jim French.
The UK domestic aviation market continues to
show little sign of recovery, with the market
trending a year-on-year decline. Since this
represents around 75 per cent of Flybe UKs
passenger base, this decline continues to pose
challenges on our UK business.
The firm said it aims to save 2 per seat through
cost cuts in an attempt to return to profitability.
Shares fell 6.3 per cent to 52p yesterday.
Flybe to curb costs
as declining traffic
sends it into the red
BY MARION DAKERS
INDIA-based airline Kingfisher has plunged to a
record loss of 7.54bn rupees (86.7m) for the
quarter, piling further pressure on the embattled
carrier.
Kingfisher, which suspended all flights last
month and has struggled to pay its staff for most
of the year, said revenues crashed 87 per cent to
2bn rupees.
Creditors have reportedly set a 30 November
deadline for Vijay Mallyas airline to bring in
fresh equity or an investor.
Kingfisher has been scrambling without
success to find fresh investment. No global
airline has publicly expressed an interest in
buying a stake.
The Centre for Asia Pacific Aviation has said a
fully funded turnaround for Kingfisher would
cost at least $1bn. This week, a top government
official said India would not renew the airlines
licence if it failed to provide a turnaround plan
by the end of December.
Pressure mounts on
Indias Kingfisher
after record losses
BY MARION DAKERS
10
NEWS
FUNDS firm Schroders beat fore-
casts with 2.6bn of net new
money in the third quarter, but
profits fell and it struck a cautious
tone about the coming year.
The firm attracted 1.9bn net
inflows to its institutional funds
and 800m to its retail-focused
Intermediary unit, though clients
in its private banking arm pulled
out a net 100m.
While the firm smashed through
forecasts of 1.1bn total inflows, it
cast doubt on whether the trend
will continue.
It is not clear whether this more
positive tone in Intermediary will
be sustained given the uncertain
economic background, but long
term we are well positioned with a
broad product range, competitive
investment performance and
strong distribution, said Schroders
Schroders nets
new money but
stays cautious
BY MARION DAKERS
in a trading statement yesterday.
Funds under management rose to
202bn, up from 194.6bn three
months earlier. This was helped by
5.6bn of investment returns.
Overall quarterly profit fell 12.8
per cent to 88.6m, the bulk of
which came from Schroders asset
management arm. The private bank
made 4m, down 40 per cent, as
revenues dipped 16 per cent to
24.6m.
Schroders PLC
1,610
1,600
1,620
1,630
1,590
1,570
1,580
1,560
p
1,565.00
8Nov
Chairman Sir David Howard
has hit out at the FSCS
11
NEWS
cityam.com
15 minutes every 15 minutes.
The smarter way between Heathrow and central London.
Book now at heathrowexpress.com
Slow lane? Fast track.
CHARLES Stanley has criticised the
levy it must pay into the Financial
Services Compensation Scheme,
which knocked 40 per cent off its
pre-tax profit for the first half of
the year.
Sir David Howard, chairman of
the stockbroker and investment
manager, said the 1.4m it
gave to the FSCS goes
towards funding
compensation linked to
areas of business
unrelated to his firm.
This is really no
more than a sort of tax
which is levied on us in a
way, and in amounts,
that we cant plan
Charles Stanley blames finance
levy for slump in its earnings
BY MARION DAKERS
for, he said.
The FSCS was set up in 2001 to
ensure customers of failed
financial firms do not lose all their
money. It is funded by levies on
FSA-registered companies.
But several investment
management firms including
Hargreaves Lansdown and
Rathbone Brothers have hit out at
the amounts they must contribute.
Charles Stanley yesterday
reported flat half-year revenues of
60m, while fees rose 11 per cent
to 36.8m.
Pre-tax profit slumped 35 per
cent to 3.4m, in part due to the
FSCS levy and restructuring costs.
GROUPONS quarterly results lagged
expectations as the daily deal compa-
nys European operations continued
to struggle, wiping 17 per cent off its
shares last night.
Groupon shares slid to a record
low of $3.25 in after hours trading
yesterday after closing at $3.92.
Revenue was $568.6m in the third
quarter, compared with $430.2m in
the third quarter of 2011.
Groupon reported a net loss of
$3m, or zero cents per common
share in the period, compared with a
net loss of $54.2m, or 18 cents a
share, in the third quarter of 2011.
Analysts had expected a profit of
three cents a share.
Andrew Mason, chief executive of
Groupon, said a solid performance
in North America was offset by
continued challenges in Europe.
Groupon hit
as revenue
disappoints
Tate & Lyle PLC
730
720
740
750
710
p
730.00
8Nov
BRITISH sweeteners and starches
maker Tate & Lyle said yesterday
that the cost of re-opening a
factory and tough trading in
Europe had reduced earnings
growth in its first half.
The group posted adjusted pre-
tax profit of 179m, up two per
cent, stifled by the cost of
restarting a second plant for its
zero-calorie sucralose sweetener
Splenda in Alabama earlier this
year. First-half sales rose seven per
cent to 1.63bn, despite
uncertainty around the wider
economy and corn quality and
pricing.
Chief executive Javed Ahmed
said the group made progress
against the backdrop of a strong
first half last year, softer market
conditions in Europe and the steep
change in fixed costs associated
with the restart of its Alabama
facility.
We continue to do fine in
Europe but we just havent seen a
lot of growth, he said.
BY HARRY BANKS
Tate & Lyle said it continued to
expect to make progress this
financial year.
The company dusted down its
McIntoch sucralose plant in
Alabama earlier this year as its
sole plant in Singapore was
struggling to cope with demand.
Shares in the group, which had
a strong run into the results,
rising 19 per cent since 10
September, fell 0.5 per cent.
The company is very healthy
and has high margins, said
Panmure Gordon analyst Graham
Jones.
12
NEWS
cityam.com
For purchase until midnight 15 November 2012. Fares include all taxes and charges. Fares correct as of 5 November 2012 and for travel between 17 December 2012 - 24 March 2013 with the exception of Brive, Deauville, Pau, Nantes and Florence, travel between
7 January 2013 - 24 March 2013. Available on selected ights only, limited availability, terms and conditions apply. For full terms and conditions, visit cityjet.com
EUROPE
FOR
LESS.
London City Airport to:
Germany FROM

99RTN
Holland FROM 109RTN
Belgium FROM 109RTN
France FROM 109RTN
Luxembourg FROM 109RTN
Italy FROM 119RTN
Scotland FROM 129RTN
Book at cityjet.com
Tate & Lyles profit dented by
expansion of sweetener plant
IN BRIEF
McDonalds struggles in October
n McDonalds yesterday reported a 1.8
per cent drop in October sales at
established restaurants around the world,
its first monthly sales fall since March
2003, hurt by stiff competition in a weak
economy. Analysts, on average, expected
a 1.07 per cent decline in sales at
restaurants open at least 13 months,
according to Consensus Metrix. The results
came just weeks after the worlds biggest
hamburger chain posted its worst
quarterly restaurant sales growth
performance in nine years. October sales
at restaurants open at least 13 months fell
2.2 per cent in both the US and Europe
and fell 2.4 per cent in the Asia/Pacific,
Middle East and Africa region. The US just
edges out Europe as McDonalds largest
market for sales.
Dairy Crest revenue drops 7pc
n Britains Dairy Crest Group, the maker
of Cathedral City cheese, reported a 16 per
cent fall in first-half profit as its core milk
business continued to struggle. April to
September adjusted pre-tax profit fell to
19.1m from 22.7m a year earlier.
Revenue fell seven per cent to 688.2m.
Revenue from dairies, which accounts for
three-quarters of total revenue, was down
about 11 per cent. UKs dairy industry has
been rocked by widescale protests by
dairy farmers demanding higher prices
from milk processors and supermarkets.
Dairy Crests higher-margin dairy foods
business has compensated for the decline
in its milk business. The company said total
sales of its four key brands Cathedral
City, Country Life, Clover and Frijj were
up 11 per cent during the period.
Walt Disney boosted by ESPN
n Media giant Walt Disney posted higher
quarterly profit on Thursday, lifted by an
increase in attendance at theme parks and
a gain in revenue at sports juggernaut
ESPN. Disney reported diluted earnings
per share of 68 cents for the quarter that
ended in September, in line with
expectations from Wall Street analysts.
Net income rose 14 per cent to $1.2bn in
the quarter. The theme parks division
gained from passengers spending more
time on Disney cruise ships plus a boost in
attendance at theme parks in Hong Kong,
California and Paris, the company said.
Disney shares dropped two per cent in
after-hours trading to $49. Earlier, shares
closed at $50.04 in the US. Disney last
week unveiled a $4.05bn agreement to
buy Lucasfilm from producer George Luca.
The recent share price underperformance had anticipated a weak update
and indeed, Morrisons update was disappointing. We expect underperformance to
continue into next year as changes to its marketing & promotional strategy
will take time for consumers to become aware of.
ANALYST VIEWS
The recent market share data for the UK supermarkets has contained one
clear and demonstrable alarm bell, to our minds at least, and that is the slowing
sales momentum and widening under performance of Morrisons...
Following this very disappointing update [we] reiterate our sell stance.
Morrisons third quarter update was as challenged as feared, with like-

for-likes declining 2.1 per cent.... Our unchanged estimates presume that this,
and softer comparables, translate into improving trading momentum
from the fourth quarter.
WHAT DOES THE FUTURE

HOLD FOR MORRISONS?
Interviews by Kasmira Jefford
KATE CALVERT SEYMOUR PIERCE
CLIVE BLACK SHORE CAPITAL
JAMES GRZINIC DEUTSCHE BANK

WM Morrison Supermarkets PLC
267
268
265
266
269
270
271
263
264
p
263.50
8Nov
WM MORRISONS chief executive
admitted yesterday it had not done
enough to reach out to customers
after the supermarket posted a wors-
ening decline in sales and parted ways
with its commercial director.
Revealing a 2.1 per cent drop in third
quarter sales, Dalton Philips said it
had not promoted strengths that set it
apart from rivals such as its in-store
butchers and bakers and admitted to
losing out on promotions.
But he said it was about promoting
more effectively rather than promot-
ing more, adding you have got to
have promotions that stand out.
Philips said it had to adjust and
commercial director Richard Hodgson
would be replaced with veteran retail-
er Martyn Jones.
BY KASMIRA JEFFORD
Morrisons has lagged rivals in mov-
ing online and launching convenience
stores, prompting analysts to criticise
it for being stuck in the past.
The group will open 70 convenience
stores by the end of next year. It also
launched its online Morrisons Cellar
wine range this week and will update
on a full internet offering next year.
13
NEWS
cityam.com
SUPERGROUP has seen sales jump in
the second quarter of the year as cold-
er weather boosted sales of coats and
hoodies from its Superdry label.
Chief executive Julian Dunkerton
said: When it dropped three or four
degrees in one day...you are selling
more of your heavy knits and jackets
and you get more of a sense of
whether your brand is successful.
And thats how we feel, that we have
a successful range.
Retail sales increased by 32.2 per
cent to 52.2m in the quarter,
boosted by the clearance sales
following the re-branding of the
Cult stores to Superdry.
Like-for-like sales jumped 5.8 per
cent against weaker comparatives
last year when it reported a slump
in sales after stock ordering
problems.
Cold weather
heats up tills
at Supergroup
BY KASMIRA JEFFORD
Morrisons top
director leaves
as sales worsen
EUROZONE economic sentiment
worsened yet further going into the
fourth quarter, data showed yester-
day, as worries surrounding mem-
ber debt piles refused to go away.
Expert respondents rated the euro
area economic climate at 81.7 in
the fourth quarter, according to the
Ifo Institute, down from 88.9 in the
third quarter where 100 corre-
sponds to the climate in 2005.
These experts cited public budget
deficits as their biggest worry, and
the most important explanation of
the troubling economic circum-
stances, ahead of a lack of demand
and high unemployment.
And expectations for the future
were even gloomier, at 72.1, sig-
nalling the respondents had little
faith in EU and national govern-
ment schemes intended to bring
bloc countries back into recovery.
This survey data came as trade fig-
ures from both Germany and
Fourth quarter
sees Eurozone
even gloomier
BY BEN SOUTHWOOD
France revealed shrinking exports.
French exports declined 0.6bn
(0.48bn) to hit 37.6bn in
September, though a bigger fall in
imports meant the trade deficit
shrank to 5bn.
This data will only add to the case
for President Francois Hollandes
20bn package intended to reverse
the long-term slide in French com-
petitiveness which has seen the ero-
sion of some 750,000 factory jobs
over the past 10 years.
German exports were 91.7bn in
September, federal statistics office
Destatis said, down 3.4 per cent on
the same month last year though
the year-to-date figures showed mod-
est growth over 2011. This left the
balance of foreign trade at 16.9bn,
down from 17.3bn in September
last year. Manufacturing data rein-
forced this pessimistic interpreta-
tion of the data, showing that
manufacturing turnover slipped
three per cent compared to August,
driven by falling foreign business.
14
NEWS
cityam.com
Investors buy up Spanish long
term bonds giving Rajoy time
SPAIN showed yesterday that
investors will buy even its long-
term debt, with a successful bond
auction that completed its 2012
issuance programme, giving the
government breathing room to
hold out before requesting
international aid.
Most analysts still think Spain
will need to call on the European
Central Banks firing power
before long, but the smooth
auction could prompt Prime
Minister Mariano Rajoy to wait
longer than expected before
seeking a bailout.
The auction of 4.8bn of bonds
raised more than the targeted
amount of up to 4.5bn. Finishing
the 2012 bond issuance
programme ahead of schedule
allows the Treasury to start
making headway on its plans for
next year, when it needs to raise
207bn for its own needs and
some 20bn more on behalf of
indebted autonomous regions.
Yesterdays sale included longer-
term bonds for the first time in a
year and a half, a sign that
investors are prepared to bet over
a longer horizon on one of the
economies worst hit by the
Eurozone crisis, mired in
prolonged recession. However
those 20-year bonds, which raised
731m, yielded 6.33 per cent, high
by historical standards.
The bulk of the sale 3.04bn
came from a new five-year bond
yielding 4.68 per cent. The
Treasurys borrowing cost fell on a
2015 bond, which sold 992m at
an average 3.66 per cent yield,
compared with a 3.96 per cent
yield when last sold on 4 October.
GREEK LABOUR MARKET COLLAPSE DEEPENS
Jul12 Jan 12 Jul 11 Jan 11 Jul 10 Jan 10 Jul 09 Jan 09 Jul 08 Jan08 Jul07 Jan07 Jul06 Jan 06
4,800
4,600
4,400
4,200
4,000
3,800
3,600
25.5%
20.5%
15.5%
10.5%
5.5%
Unemployment rate Employment (thousands)
EMPLOYMENT
UNEMPLOYMENT
HITS 25.4% HITS 3.72m
IN AUGUST
IN AUGUST
FROM 24.8% IN JULY
18.4% IN AUGUST 2011
FROM 3.81m IN JULY
4.03m IN AUGUST 2011
NEW JOBLESS claims in the US
continued to creep down in the
beginning of November, at least on
seasonally-adjusted figures,
according to data released
yesterday.
New unemployment insurance
claims dropped 8,000 in the week
ending 3 November, to reach
355,000, the Department of Labor
showed. But the bigger drop-off
came in total insured
Seasonally-adjusted US jobless
numbers show continued slide
BY BEN SOUTHWOOD unemployment, which fell 135,000
into the previous week, ending 27
October, putting them 517,000
lower than a year earlier, at a total
of 3,127,000.
This came in tandem with trade
balance data from the Bureau of
Economic Analysis and the Census
Bureau which showed a $2.9bn
(1.8bn) fall in the overall deficit in
September, compared to a year
earlier, bringing it to $41.5bn, on a
falling goods deficit combined with
a rising surplus in services.
16
NEWS
cityam.com
INSIDE
TRACK
DAVID HELLIER
I
t would be no exaggeration to say
that the boutique investment banks
are hurting due to the dearth of deal
activity but in their favour they have
increased their market share of deals
and every so often they pop up quite
spectacularly when one is least
expecting them.
Hence when BP bought (and then later
sold) its stake in BP-TNK it mandated
Lambert Energy to advise it on the deal
along with others. Similarly, and equally
noteworthy, Michael Kleins boutique
Klein & Co was instrumental in first get-
ting the chief executives of Glencore and
Xstrata together for its mega merger.
When relations deteriorated later in the
deal, it was the unusual intervention of
former PM Tony Blair that managed to
get the deal back on track.
Earlier this year Centreview Partners
advised Alliance Boots on its sale to
Walgreens of the US thanks to the long
association of banker Richard Gurling
with the target company. Boutiques
offer independence and pure corporate
finance support but obviously lack the
balance sheet strength of the bulge
bracket banks.
Now I hear that the former Mirror
Group chief executive David
Montgomery has hired Lepe Partners to
advise him on the acquisition of
Northcliffe Newspapers from DMGT.
Lepe was started by two former execu-
tives from Long Acre. Its advisory board
includes media luminaries such as
Brent Hoberman, the co-founder of
Lastminute.com and Michael Jackson,
the ex C4 chief executive officer.
Founder Johnny Goodwin, whose
clients have included the former
TalkSport chief executive Kelvin
MacKenzie (also a friend), left Jefferies
when it became clear it wanted to focus
on larger companies. Lepe is here to act
for and help entrepreneurs, Goodwin
told me this week, without confirming a
role in the Northcliffe transaction.
Were focused on going on journeys
with entrepreneurs. Also acting on
the deal, I hear, is City veteran Nick
Wells, whose journeys in the past
have included being with the likes of
retail tycoon Sir Philip Green and
Michael Ashcroft, who appears to be
one of the backers of any bid
Montgomery might make.
Montgomerys track record as a
businessman might be mixed but
theres no doubt he knows a lot
about newspapers and the technolog-
ical changes shaping the industry.
ORCEL STEPS IN AT UBS
After the drama of last weeks
announcement by UBS that it is plan-
ning to cut 10,000 staff worldwide,
new investment banking boss, the
charismatic Andrea Orcel, this week
went about the difficult task of try-
ing to raise morale.
In the early part of the week Orcel
addressed a group of around 500 sen-
ior London-based employees at a
meeting at the Honourable Artillery
Company at which he stressed the
bank had a bright future in corpo-
rate finance and wasnt going to sur-
render its rich heritage. The
investment bank isnt being shut
down and dont let anybody con-
vince you that it is, said Orcel, in a
speech described as very vibrant and
up-lifting. He then got on a plane to
New York, where he performed the
same task there.
david.hellier@cityam.com
THEFORUM
cityam.com/forum
L L
JOIN THE DEBATE
PAGES 26-27
David Montgomery
eyes Lepe back into
the newspaper world
Left to right: easyJet boss Carolyn McCall; Robert Swannell, chairman of Marks
and Spencer and Amber Rudd, MP for Hastings and Rye
Guy Hawney, equity dealer at Hermes Pensions Management, with his newly won scooter
BATED breaths around the City can
finally breathe deeply, the lucky win-
ner of Mondays competition has now
been revealed.
The proud new owner of the very
sleek Vmoto scooter, The Capitalist is
pleased to announce, is Guy Hawney,
equity dealer at Hermes Pensions
Management.
Hawney correctly guessed that the
top speed of the motorcycle was
Whos that man with the brand
new scooter? Our prize winner
30mph answer c).
Upon receiving his early Christmas
present, Hawney said: It looks like a
cracker, although I think there might
be some competition from my daugh-
ter in terms of who gets to ride it.
Thanks to all you City A.M. readers
who entered, and lest we forget, there
is still a prize available for whoever
sends the finest Movember specimen
to thecapitalist@cityam.com
17
cityam.com
cityam.com/the-capitalist
THECAPITALIST
Got A Story? Email
thecapitalist@cityam.com
Plenty of FTSE faces at
Rudds Finsbury bash
Left to right: Martin Gilbert, chief executive of Aberdeen Asset Management and
Roland Rudd, perfect party host and founder of City PR firm RLM Finsbury
Left to right: Simon Lewis, chief executive of the Association for Financial Markets
(AFME); Russell Chambers, senior adviser at Credit Suisse and Mervyn Metcalf,
managing director of Dean Street Advisers
EDITED BY CALLY SQUIRES
TO SW1 last night where senior City
figures attended the annual drinks
party given by Roland Rudd, boss of
City PR outfit RLM Finsbury. Among
the guest list were Stephen Hester of
RBS, Chris Gibson-Smith of British
Land, M&S chairman Robert
Swannell, easyJets boss Carolyn
McCall, Sir Charles Dunstone of
Carphone. Rolands sister Amber
Rudd told The Capitalist she had just
won an office battle to get her name
up on the door alongside George
Osborne, for whom she is now
Parliamentary private secretary. At
this rate, PR guru Roland will soon
have to start introducing himself as
Ambers brother at parties.
in store mobile carphonewarehouse.com
WE COMPARE ALL THE MAJOR NETWORKS
PERFECT ONE
TO FIND THE
FOR YOUR
5
TM and 2010 Apple Inc. All rights reserved.
ED WILLIAMS announced yesterday
he is to retire as chief executive of
Rightmove, 12 years after co-
founding the property website.
Nick McKittrick, who co-founded
Rightmove alongside Williams and
currently serves as finance director
and chief operating officer, will
succeed him as chief executive.
Rightmove was set up in 2000
with 10m and was valued at 425m
when floated on the stock exchange
six years later.
The pair have seen
the aggregation
website grow to
one of the UKs
top property
sites valued at
1.7bn today.
Shares last
night fell less
than one per
cent to close at
1,585.48p.
Rightmove
founder and
chief to retire
BY KASMIRA JEFFORD
LAND Securities said yesterday it had
clinched its third tenant at the Walkie
Talkie skyscraper scheme in the City,
as insurers help bolster the muted
office lettings market.
The property giant said its joint ven-
ture with Canary Wharf Group is now
23 per cent pre-let with a further 11
per cent in solicitors hands after sign-
ing a pre-let deal with insurer Ascot
Underwriting as well as Markel and
Kiln earlier this year.
In results for the six months to 30
September, the group said earnings
fell 10.2 per cent year-on-year after sell-
ing secondary sites and shopping
malls to fund its ambitious 1bn
development plans.
Chief executive Rob Noel shrugged
off concerns over its exposures to the
project, stressing it still only repre-
Land Secs bags
third tenant for
Walkie Talkie
BY KASMIRA JEFFORD
sented 15 per cent of its portfolio.
We are building much bigger build-
ings than we sold and the income will
come storming back again, he said.
Net asset value was flat in the period
at 864p a share, which was below con-
sensus forecasts of 868p, after a UK 3.4
per cent drop in retail property value
offset an 8.6 per cent growth in the
value of its developments.
Land Securities Group PLC
790
800
810
820
830 p
794.50
8Nov
Balfour Beatty PLC
260
250
270
280
290
300
310
320 p
261.23
8Nov
Land Securities says its Walkie Talkie skyscraper is now 23 per cent pre-let
19
NEWS
cityam.com
Ed Williams will
retire as CEO of
Rightmove
Balfour Beatty to review its
business after profit warning
BALFOUR Beatty said it is
studying whether to close parts
of its operations after issuing a
profit warning yesterday,
prompting its share price to dive
18 per cent.
We are definitely in a world
... where we are having to look
at desisting from certain areas
of the market, chief executive
Ian Tyler said.
His comments came as the
group warned it would miss its
profit guidance for 2012.
The construction sector
accounts for around 30 per cent
BY A CITY A.M. REPORTER
of Balfours business.
Weakness there caused by
public sector cuts and falling
business confidence has
squeezed margins across the
sector since the 2008
property crisis.
The group said it was
specifically reviewing its rail
construction operations in
light of critically low activity
levels in Italy and Spain as
well as low margins in the UK
and Germany.
Unfortunately for Balfour
there arent the big contracts
which historically they have
used to differentiate
themselves to get a bit of margin,
said Andrew Gibb at Investec.
Theyre having to go further
down the food chain in terms of
looking for work, he added.
A
VIVA yesterday echoed
President Barack Obama,
promising the best is yet to
come as it touted costly
transformation plans. It doesnt
face a crisis as ominous as
Americas fiscal cliff, but the
headwinds are severe. As we wait
for a decision on its new chief
executive, Aviva cant even promise
an easy transition, admitting with
refreshing honesty its plans have
encountered more bureaucracy
than desirable.
Most significantly financially,
Aviva said yesterday that any sale
of its US life and annuities
business would come at a
substantial discount. By some
estimates, it could wipe off two
thirds of the 3bn book value.
With nine transformation
programmes, Aviva faces an uphill
task. Its journey must start with a
substantial loss. John McFarlane,
its new chairman, is highly
competent and wonderfully blunt.
He deserves nvestors backing for
the long-haul.
THE WORLD IS NOT ENOUGH
Meanwhile Balfour Beatty revealed
that being a global firm wont
necessarily save you from the
worlds economic turmoil. The
infrastructure services firm gave a
profit warning thanks to three
different developed markets all
unhappy in their own ways.
In Europe, the problem is rail
construction. In the UK, further
market deterioration is blamed on
the lack of big infrastructure
projects. Finally, the firm warns
that 2013 looks set to be a tough
year in the sector and notes a
reduction in confidence in the US
building market following some
encouraging signs earlier in the
year. It seems theres no bright
spots left on the map.
With 650 jobs to go in the UK
back office alone, Balfour has
made tough calls in a tough
market. This warning should put
the whole sector on watch.
BOTTOM
LINE
MARC SIDWELL
Aviva looks to the future but
faces a hard slog to get there
IN BRIEF
3i Infrastructure returns improve
nListed investment firm 3i
Infrastructure posted rising returns
yesterday in spite of subdued buying
and selling activity. 3i Infrastructure,
whose assets include stakes in
Eversholt Rail Group, Anglian Water
and an Indian road builder, said
returns rose 94 per cent to 30.9m in
the six months to the end of
September, while net asset per share
rose from 116.4p to 118.6p.
Siemens aims to save 4.8bn
nGerman engineering conglomerate
Siemens said yesterday it aims to save
6bn (4.8bn) over the next two
years as it fights to stay competitive in
a weak global economy. The savings
target was much higher than the 2-
4bn analysts had expected, sending
Siemens shares up four per cent one
of the biggest gainers in Europe. In
the fiscal fourth quarter, net profit
eased by two per cent to 1.48bn.
Micro Focus revenues in line
nMicro Focus, a software provider for
91 of the FTSE 100 firms such as Tesco
and HSBC, said yesterday that in the
past six months revenues were in line
with the market for the period and
earnings are slightly ahead of
expectations. During the period the
company reduced its net debt to
$96.2m (60.2m) from Aprils $113.2m
figure. Shares in the company rose
slightly yesterday.
TRINITY Mirror yesterday upgraded
its profit forecast for the year after
an unexpected pickup in the adver-
tising market in recent weeks.
The newspaper publisher had
expected operating profits to be
lower than last years 104.5m.
However, a November uptick, includ-
ing an marketing blitz from 4G
provider EE, pushed Trinity Mirror to
say it expects similar profits to 2011.
The news drove shares in the com-
pany, which plummeted last month
as it was dragged into the phone
hacking scandal, up more than six
per cent yesterday.
Lawyers for four individuals includ-
ing former England football manag-
er Sven Goran-Eriksson, alleged two
weeks ago that Mirror journalists
had hacked into the celebrities
voicemails, widening a controversy
that had previously been focused on
Rupert Murdochs News Corp.
Yesterday, Trinity Mirror boss
Simon Fox said the company had not
Recent ad sales
improve Trinity
Mirror forecasts
BY JAMES TITCOMB
yet received the claims, and said he
had asked lawyers to demand details.
Meanwhile, the firm announced
results for the 17 weeks to 28 October,
which showed a 12 per cent year-on-
year fall in ad revenue and a 16 per
cent fall in circulation. Fox put much
of this down to a tough comparative
2011 period, when the News of the
World the Sunday Mirror and
Peoples major competition had
closed. It has now been replaced by a
Sunday edition of the Sun.
Group revenue was 223m in the
period, down 11 per cent on last year.
Magazine disposals pay off for
trade publisher Reed Elsevier
PUBLISHING giant Reed Elsevier
showed yesterday that a plan to
dispose of most of its print
operations is paying off, as it said all
aspects of its business had grown in
2012.
The FTSE 100 firm got rid of
Hollywood magazine Variety this
year, and has sold other trade
publications such as Publishers
Weekly in a bid to hive off parts of
the firm that rely on advertising.
However, it is holding on to the
successful National Geographic.
The remaining Reed Elsevier
divisions, including research
BY JAMES TITCOMB
service LexisNexis and the Grays
Anatomy medical textbook, drove
the company to a four per cent rise
in underlying revenue in the nine
months to October.
The firms exhibitions business,
which hosts international trade
fairs, saw 15 per cent growth, while
its financial data publishing
operations also put in a strong
showing.
In the first nine months of 2012
we have made good progress in
systematically transforming our
business, primarily through organic
investment, supplemented by
selective portfolio developments,
the companys chief executive Erik
Engstrom said. The companys print
business now makes up just a fifth
of revenues.
Shares, currently trading at four-
year highs, dipped one per cent.
Snake anti-venom adds bite to
profit hike at pharma firm BTG
STRONG demand for snake anti-
venom and cancer drugs helped
BTG lift revenue 30 per cent to
143.4m in the half-year to the end
of September, the firm said
yesterday.
The speciality pharmaceutical
company was also boosted by the
successful US launch of a
treatment to prevent toxicity
caused by cancer chemotherapy
and growing royalties from
Johnson & Johnsons prostate
cancer drug Zytiga.
Profit after tax for the period was
44 per cent higher at 18.3m.
BTG had already flagged a good
first-half performance last month,
when it raised its full-year revenue
guidance to 205m-215m, up from
a previous range of 190m-200m. It
reiterated that outlook.
Revenue for the company is
skewed to the first half of the
financial year, since the summer is
the peak snake biting season in the
US. Demand for its CroFab anti-
venom drug was boosted this year
by wholesaler stocking and higher
prices.
The US commercial launch in
April of chemotherapy toxicity drug
Voraxaze also lifted results in the
period.
Under chief executive Louise
Makin, BTG has undergone a
transformation from a group that
buys up patents and licenses them
out into a pharmaceutical company
marketing its own products.
We have moved a long way,
particularly in the last four years,
but we are ambitious, we have solid
financials and we are in growth
mode, Makin said.
With 151m of cash, BTG is able
to cast its net for potential
acquisitions and Makin said she was
hunting for deals that could add
specialist products, particularly
ones suitable for selling through
the companys US operations.
Trinity Mirror PLCt
60
58
62
64
66
68
70
72 p
70.50
8Nov
Reed Elsevier PLC
610
615
620
625
630 p
608.50
8Nov
PUB chain giant JD Wetherspoon
yesterday said a boost from the
Olympic and Paralympic Games
had led sales to rise by 11.1 per
cent in the 13 week period to 28
October.
The results suggested an upturn
in the wider pub trade in late
summer and early autumn, after
wet weather in the previous
quarter had dampened trade.
JD Wetherspoon added that it
expects to open 25 pubs in the
Olympic Games give boost to JD
Wetherspoon after wet summer
BY JAMES TITCOMB next nine months to add to its
current 862.
With the effect of new pubs
taken out, sales were up 7.7 per
cent, the company said. The firm
ran on an operating margin of 8.6
per cent, which was slightly lower
than in the same period last year
due to increased costs including
tax rates and utilities.
However, it warned that it did
not expect the level of growth to
continue for the rest of the year,
due to the one-off nature of the
Games.
20
NEWS
cityam.com
Chairman and founder Tim Martin is opening 25 more pubs over the next nine months
SHARES in Cable & Wireless
Communications (CWC), the
telecoms operator with operations
in a number of former colonies,
rose by just under six per cent
yesterday as the company reported
strong growth in its Macau
operation.
CWC beat predictions that
revenue would be flat in the six
months to October, posting a one
per cent rise in turnover to $1.4bn
(876m). The companys four main
business are in the Caribbean,
Panama, Monaco and Macau, but
it has recently said that it is in
discussions to sell the latter two.
Chief executive Tony Rice has
outlined a plan to focus on
CWC leaps as it beats forecasts
ahead of selling off divisions
BY JAMES TITCOMB
operations in the Caribbean and
Panama. He told City A.M. that the
operations in the West were a
preferential environment for a
business with a strong growth
dynamic, saying that the Macau
and Monaco divisions were ex-
growth.
Surprisingly, it was Macau that
saw the biggest sales rise out of
CWCs four divisions, with
turnover in the region rising 20
per cent to $310m. Rice said
negotiations to sell parts of the
company were complicated and
multi-party, and said he had not
decided what CWC would do with
the money if they were sold.
The Macau and Monaco
operations are estimated to be
worth over $1.5bn between them.
CHINESE computing behemoth
Lenovo recorded a 10 per cent
increase in PC shipments in the
three months to the end of
September yesterday, a boost that
is expected to mean it has
overtaken Hewlett-Packard (HP) as
the worlds biggest PC
manufacturer.
The company, which has been
rapidly gaining market share as US
and Japanese rivals see falling
sales, reported a record quarter in
which revenue rose 11 per cent
year-on-year to $8.67bn (5.43bn).
Global PC shipments were up
10.3 per cent, in a market that has
shrunk eight per cent as more
people purchase smartphones and
Lenovo defies gloom to become
worlds biggest PC manufacturer
BY JAMES TITCOMB
tablets instead of buying new PCs.
The company added that its
smartphone business, which is
mostly confined to China, was
profitable for the first time.
The company has become a
market leader due to its reliable,
low-cost laptop computers. US
rivals HP and Dell have struggled
to compete on price. Lenovo could
be boosted further by the recent
release of Microsofts new
operating software, Windows 8.
As emerging markets outside of
China and mature businesses have
entered the profitable growth
stage, and as our smartphone and
[other businesses] continue to
grow, Lenovos overall profitability
will continue to improve, the
firms chief Yang Yuanqing said.
IN BRIEF
Talvivaara reports quarterly loss
nFinnish miner Talvivaara slumped to
a third quarter loss of 4.3m (3.4m)
it said yesterday, down from a 5.5m
profit the year before, as the company
battled issues at its Sotkamo mine.
Talvivaaras output has been hit by
heavy rainfall this year, and last week
it had to shut the Sotkamo plant due
to a waste water leakage.
Profit slumps 29pc at Shanks
nUnderlying pre-tax profit at waste
management group Shanks fell 29 per
cent in the six months to September.
Profits came in at 14.3m, down from
20.2m in the previous year, hurt by a
deterioration in recession-hit solid
waste markets in the UK and
Netherlands and record lows in
construction output.
Sandy hits United Continental
nUnited Continental, the worlds
largest air carrier, said disruptions to
operations because of superstorm
Sandy reduced revenue and profit in
October. United, which operates a hub
at Newark Liberty International
Airport in New Jersey, said that Sandy
hurt revenue by about $90m and
profit by about $35m in October.
REVENUE at Eurasian Natural
Resources Corporation (ENRC)
decreased sharply in the nine
months to September, as it said it
would prioritise copper projects in
the Congo.
ENRC, which is the worlds
largest ferrochrome producer, said
yesterday that it had completed its
five-year spending review and
intends to focus on five key
projects, including a ferroalloys
plant in Kazakhstan and several
copper projects in the Congo.
The miner will spend $4.4bn
(2.8bn) on the five-year growth
programme, of which $3.2bn will
be spent on these five key projects.
Weighing heavily on revenue was
weaker prices for iron ore and
ferroalloys, which fell by 26 per
ENRC pins hope
on Congo as its
revenue sinks
BY CATHY ADAMS
cent and eight per cent respectively.
Lower sales of ferroalloys, chrome
ore, iron ore and alumina also hurt
revenue, ENRC said.
The aluminium division also
suffered a 19 per cent fall in
revenue due to lower prices,
although this was offset by a strong
performance in the energy
division, ENRC said.
European Aeronautic Defence and Space Company
26.50
26.25
26.75
27.00
27.25
27.50
27.75
26.10
8Nov
Eurasian Natural Resources Corporation
300
310
320
330
340
350 p
294.60
8Nov
KAZAKHSTAN-focused metals
producer Polymetal has been hit
with a $19m (11.8m) tax bill,
which could affect its 2012 full-
year profit.
The miner said today that a
Kazakhstan regional court ruled
that the FTSE 250 company and its
subsidiaries must pay $19m in
additional taxes.
Corporate profit tax of $14m,
including interest charges, has
been charged to Polymetals
subsidiary JSC Varvarinskoye. An
BY CATHY ADAMS
additional fine of $5m has also
been added, making $19m in total.
The taxes relate to deducted
costs for the transportation and
concentrate of assets at a Kazakh
mine, which reduced annual
profits.
The tax bill equals around six
per cent of Polymetals 2011
profit, which came in at $290m.
Full-year profits are expected to
come in slightly higher for 2012,
and Polymetal said it had not set
aside provision for the settlement.
It will be reflected as an expense
in the full-year financial results.
Chief executive Vitaly Nesis has been in charge of the firm for 14 months
To celebrate INGs continuing association with arts charity The Discerning Eye,
ING Commercial Banking has teamed up with CityAM to offer you the chance
to win up to 1,000 of art. The ING Discerning Eye, with its slogan new artists,
new audiences, showcases the work of unknown artists alongside their more
established contemporaries.
This year a total of 485 pieces of art, representing the work of 184 artists, has
br clo|d by rorirr| gurc ror |l ur| world |o go or clow. Euol
selector will use their own dedicated gallery space to display their choices, pro-
viding a unique range of themes which has earned the exhibition an enviable
reputation among art lovers and collectors alike. All the art on show is for sale.
For a chance to win 1,000 to spend on the artwork of your choice from the ING
Discerning Eye exhibition, simply answer the question below:
What is the slogan of the ING Discerning Eye Exhibition?
Please send your answer to win@cityam.com
Terms and conditions
The winner will be entitled to choose a painting from the ING Discerning Eye exhibition up to the value of 1,000. The prize is
non transferable, non negotiable and no cash alternative is offered. Entry to the prize draw is free and is open to anyone aged
18 years and over resident in the UK, except employees of ING, their families, agents or anyone else professionally associated
with the draw. Only one entry per person. The closing date is midnight on Sunday 11 November 2012. The winning answer
will b druwr u| rurdor ror ull ligibl r|ric roivd urd |l wirrr will b ro|id by lor or Morduy 1. Novrbr.
The winner must be available on Tuesday 13 November at the Mall Galleries in London to choose their painting. ING assumes
no responsibility and is not liable for any costs, charges or expenses which the winner may be required to pay at any time in
connection with the prize. The winner, by accepting the prize, agrees to participate in non paid publicity accompanying or
rcul|irg ror |lic druw i rquird. Tl Edi|or'c doicior ic rul ir ull ru||rc oororrirg |lic roro|ior. No oorrcordro
will be entered into about a decision regarding eligibility. ING reserves the right to suspend, cancel, or amend this promotion
and/or review and revise these terms and conditions at any time without giving prior notice and by continuing to take part in the
promotion subsequent to any revision of these terms and conditions, entrants shall be deemed to have agreed to any such new
or amended terms. These terms and conditions are governed by and construed in accordance with the laws of England and
Wales and the English Courts will have exclusive jurisdiction to determine any proceedings in connection with this competition
ING Discerning Eye, Mall Galleries,
London SW1Y 5BD 15-25 November,
10am to 5pm, entrance free.
Follow us on Twitter : INGDiscEye
and join our Facebook group : ING Discerning Eye
Sue Lansbury
Edge of Earth, Edge of Sky 2
Win 1,000 of art with ING

uing a s continnu ate ING o celebr TTo
cial Banking has te ING Commerrc
he IN T t. to win up to 1,000 of ar
wcases the sho w audiences, ne
. ies ar established contempor
ear a total of 485 pieces o his yye T
g | r r i r o rro y b d | o l c r b
d di h i l ill

gu
he Disc T ity ts char association with ar
ou t eamed up with CityAM to offer yyo
with its slogan , e ning Eyye NG Discer
tists alongside wn ar k of unknoow or e wwo
k of 184 a or esenting the w eprre rre t, of ar
o l c r o o g o | d l r o wwo | r u l | r o rro r c rr u g
h i di l d ll

, e ning Eyye cer
the chance
, tists w ar ne
e their morre
has , tists ar
l o u E . ww. o
h i

wn dedi use their o selector will
ange of theme viding a unique r
s and errs v t loov eputation among ar rre
or a chance to win 1,000 to sp FFo
simp xhibition, e e ning Eyye Discer
What is the slogan of the ING D
er to w our answ Please send y
Mall Galle , e ning Eyye ING Discer
v London SW1Y 5BD 15-25 No
. ee ance fr entr 10am to 5pm,

y their y space to displaay cated galler
xhibition a ned the e hich has ear es wwh
w t on sho All the ar . s alike d collectorrs
our choice f k of yyo orrk tw wo pend on the ar
w: er the question beloow y answ plly
e Exhibition? ning Eyye iscer
am.com win@city
, ies r
, ember vve

o pr , choices -
viable an ennv
. w is for sale
omthe ING frro

gi
Tw
ms and conditions er T
be entitled to choose a painting fr he winner will T
alte cash no and negotiable non , able ansfer tr non
emp xcept e UK, the in esident r er v oov s and ear y 18
he c T son. y per per entr y one Onl ly ww. a with the dr
r c i r | r l b i g i l l l u r o r r r o d r u r | u r w u r d b l l i w
v y 13 No uesda TTu ailable on v ust be a he winner m T
ch , y costs liable for an esponsibility and is not no r
y accep b , he winner T . e iz pr with the connection
d c ' r o | i d E l T . d r i u q r i w u r d c i l | r o r r g r i | l u c r
ding e egar about a decision r ed into be enter will
conditio ms and ter vise these e r w and vie e r and/or
ter vision of these e y r an ny to equent subs omotion pr
a and conditions ms hese ter T . ms r or amended te
j e vve xclusi e e v ts will ha English Cour ales and the WWa
witter T w us on olloow FFo INGDisc :
oup r acebook g and join our FFa

wi
alue o xhibition up to the v e e ning Ey om the ING Discer r
is o and ee w is fr a dr e iz pr the to y Entr ed. is offer e v nati iv r
of else pr one y an or agents , families their , ING of ees y plo
ember 2012. v y 11 No closing date is midnight on Sunda
M r o r o l y b d i | o r b l l i w r r r i w l | d r u d v i o r
to choose their p ies in London Galler ember at the Mall v
ed equir y be r ma winner hich the xpenses w wh ges or e har
paid public in non ticipate par ees to r ag , e iz pr the ting
r o i | o r o r c i l | g r i r r o r o o c r | | u r l l u r i l u r c i r o i c i o d
or a cancel, ight to suspend, es the r v eser ING r ligibility y.
u continnu y b and notice ior ving pr gi without y time an ny at ons
r e ag v ha shall be deemed to ants entr , ms and conditions
with the dance ued in accor y and constr ned b er v e go ar
connection in oceedings pr y an ny mine deter to isdiction jur
e cEyye
e ning Eyye ING Discer :

e is iz he pr T of 1,000.
aged one y an ny to open
associated y fessionall ly
er he winning answ T
. r b r v o N . 1 y u d r o
ING assumes . ainting
y time in an y at pa to
ying or an ny city accomp
o r d r o c r r o o o N .
omotion amend this pr
the in t par take ing to
w y such ne an ny eed to r
ws of England and la
this competition with
Negative cash flow at EADS
as production costs increase
EADS ramped up spending on
several key infrastructure projects
this year, resulting in negative
cash flow of 3.2bn (2.55bn) over
the nine months to September.
The aerospace and defence
firm has invested in the
production of several capital
intensive projects at subsidiaries
Airbus and Eurocopter, which led
its cash flow to drop from a
positive figure of 587m over the
same period last year.
It is understood that EADS has
blamed a funding row with
Germany for contributing to the
3bn-plus cash outflow this year,
after the European powerhouse
withheld a development loan for
the Airbus A350 model.
In its first trading update since
calling off plans to merge with
London-listed BAE Systems last
month, the Franco-German-led
company said its key A350
BY CATHY ADAMS
aircraft programme remained
challenging, despite resolving a
wing production problem.
Meanwhile, charges relating
to fixing cracks on the wings of
the Airbus A380 model so far
this year have amounted to
200m, and the total charge for
the full year is expected to hit
260m, EADS said yesterday.
The aerospace company was
also hit by a 76m charge for
the failure of US aircraft
manufacturer Hawker
Beechcraft.
Exceptional charges for the
nine months of the year also
included some costs relating
to the collapsed BAE merger,
although EADS declined to
disclose the exact amount.
Meanwhile, the firm said
that revenue over the first nine
months of this year came in at
37.3bn, up 14 per cent year on
year thanks to strong sales at
Airbus, while net income rose
114 per cent to 903m.
Despite the charges and German
loan row, EADS said it was on track
to grow its revenue by more than
10 per cent this year, with earnings
expected to be around 2.7bn.
We will not run out of
operational challenges anytime
soon, especially at Eurocopter and
Airbus. And for the rest of the year,
well put strong emphasis on cash
generation. Aircraft deliveries are
key, said chief executive Tom
Enders yesterday.
AngloGold slashes spending
amid crippling mine strikes
SOUTH AFRICAN gold miner
AngloGold Ashanti yesterday
said it had cut its spending
budget for this year, to shore up
its balance sheet in the wake of
strikes that have crippled much
of the countrys mining
industry.
The miner will reduce its
capital expenditure budget by
$200m (125m) to between $2bn
and $2.1bn. It will also review
BY CATHY ADAMS
its corporate costs, it said
yesterday, with the aim of
mining fewer ounces of gold
from South Africa and focusing
more on its projects in Mali and
the Congo.
The industrial action, which
started on 20 September at
AngloGolds Kopanang mine,
has so far cost the miner around
250,000 ounces of gold. It said
that the strike is over at all but
one of its mines.
Earnings in the third quarter
dropped to $235m from $456m
over the same period in 2011, as
production was hit by strikes.
Its been a tough period for
the industry here, but we've
taken decisive action on a
number of fronts to stay the
course, chief executive Mark
Cutifani said. Our major
projects are on track and were
making the decisions to ensure
we maintain a lean, fit business
that will continue delivering
strong returns.
22
NEWS
cityam.com
Polymetal faces lower 2012
profits on big tax bill of $19m
London house price growth set
to outstrip rest of UK for years
LONDON house price growth will
be well ahead of the UK average
for at least the next five years,
estate agent Savills predicted
yesterday.
Central London housing will
get 25.6 per cent more expensive
over the five years to the end of
2017, the estate agent said,
compared to 10.2 per cent growth
in the Midlands, Wales and the
North, and just 9.2 per cent
expansion in Scotland.
Prime central London has
BY BEN SOUTHWOOD
already seen prices boom 53 per
cent since the bottom of the
trough inflicted by the credit
crunch which came in the first
quarter of 2009 and the ultra-
prime sector has boomed some
58.4 per cent in that time, it said.
But Savills predicts completely
flat average house prices in
central London over next year, as
government tax hikes spoil the
appetites of so far insatiable
international buyers.
After such strong growth, we
now expect prices to plateau in
2013. Increased taxation,
including the stamp duty levy,
strengthening sterling and a
weakened global economic
outlook could all provide catalysts
for a slowdown, said Yolande
Barnes at Savills. But the
fundamentals in London remain
strong so we expect that growth
will resume in 2014.
This growth will be spread
across the London metropolitan
area, Savills believes.
It predicts that even areas that
are part of the outer commute
will see prices up 19.2 per cent by
2017.
MORTGAGE lending climbed rapidly
through the third quarter and into
October, two sets of data showed yes-
terday, as the Funding for Lending
scheme finally appeared to be having
an impact on lending.
This came in tandem with a rever-
sal in the downward house price
trend of the past few months,
revealed by another set of statistics.
The third quarter saw 4.2bn of buy-
to-let mortgage lending, the Council
of Mortgage Lenders said, an increase
of eight per cent on the previous
quarter. And the number of house
purchase loans jumped ten per cent
into October, hitting 54,713 on the
Esurv mortgage monitor, the highest
monthly rate since January this year.
And the housing market seemed to
be showing signs of life after this
credit infusion prices edged up 0.1
per cent on the month, according to
LSL property services, making the
average price 2.3 per cent higher than
in October last year.
BY BEN SOUTHWOOD Although the number of borrowers
able to secure a mortgage remains far
from healthy by historic standards,
lenders are starting to pass along
cheaper finance provided by the
Funding for Lending scheme (FLS),
said LSL boss David Newnes.
But Newnes warned that the effects
of FLS could be both positive and neg-
ative. The capital banks are required
[by FLS] to set aside for each higher
risk loan is likely to act as a drag on
high loan-to-value lending, he said,
calling this, a factor which may pre-
vent a return to anything like the
number of first-time buyers in the
market before the credit crunch in
the forseeable future.
And data from Rightmove seemed to
confirm this judgement about first-
time buyers who are set to make up
just 25 per cent of the buyer mix in
2013, well below pre-crisis standards,
commonly at around 40 per cent.
The list of challenges to get onto the
property ladder seems to be getting
longer rather than shorter, said
Rightmove director Miles Shipside.
HOUSING MARKET LOOKING STRONGER IN OCTOBER
Repossessions slowly decline following recession high
Housepriceindicesshowroughlyat pictureintoOctober
14,000
15 %
10
5
0
-5
-10
-15
-20
12,000
10,000
8,000
6,000
4,000
2,000
0
1999
Jun2007 Jun09 Jun08 Jun10 Jun11 Jun2012
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 S
o
u
r
c
e
: C
o
u
n
c
il o
f
M
o
r
t
g
a
g
e
L
e
n
d
e
r
s
S
o
u
r
c
e
: L
S
L
, A
c
a
d
a
m
e
t
r
ic
s
, D
L
G
/
O
N
S
, N
a
t
io
n
w
id
e
, H
a
lif
a
x
, R
ig
h
t
m
o
v
e
, H
o
m
e
t
r
a
c
k
, L
R
OPEC acknowledged for the first
time yesterday that technology for
extracting oil and gas from shale is
changing the global supply picture
significantly, and said demand for
crude would rise more slowly than
it had previously expected.
In its annual World Oil Outlook,
Opec (Organization of the
Petroleum Exporting Countries) cut
its forecast of global oil demand to
2016 due to economic weakness
Opec admits shale supplies will
hit demand for its members oil
BY CITY A.M. REPORTER and also increased its forecast of
supplies from countries outside the
12-nation group.
Given recent significant
increases in North American shale
oil and shale gas production, it is
now clear that these resources
might play an increasingly
important role in non-OPEC
medium-and long-term supply
prospects, it said in the report.
Shale involves so called fracking,
a system of hydraulic fracturing to
release oil and gas from rocks.
23
NEWS
cityam.com
Housing lifted
by government
scheme boost
24
US stocks fall
further on fears
over economy
U
S stocks fell yesterday and
could be in line for more
weakness as worries about
Washingtons ability to find a
timely solution to the fiscal cliff
dominate investor thinking in
coming weeks.
The S&P 500 dropped for a second
day and closed below its 200-day mov-
ing average for the first time in five
months. The moving average is a meas-
ure of the markets long-term trend,
and a significant break through that
level would be seen as a sign of weak-
ness. Just minutes before the closing
bell, stocks accelerated their declines
and the S&P 500 fell more than 1 per-
cent.
McDonalds shares fell 2 per cent to
$85.13 after the worlds largest ham-
burger chain reported its first monthly
drop in global sales since March 2003.
The stocks weakness hurt the Dow,
which fell through its 200-day moving
average on Wednesday.
Most of the major indices are bust-
ing below or challenging those trend-
lines. Typically those offer pretty
strong support, and I would be sur-
prised to see the S&P 500 fall like a
knife through here, said Bruce Zaro,
chief technical strategist at Delta
Global Asset Management, in Boston.
Apple shares sank for a second day.
The stock fell 3.6 per cent to $537.75
and is down more than 20 per cent
from its 21 September all-time intra-
day high of $705.07.
The Dow Jones industrial average lost
121.41 points, or 0.94 per cent, to
12,811.32 at the close. The Standard &
Poors 500 Index fell 17.02 points, or
1.22 per cent, to 1,377.51, ending at its
lowest level since 2 August. The Nasdaq
Composite Index dropped 41.70 points,
or 1.42 per cent, to close at 2,895.58.
B
RITAINS top share index fell
yesterday as mixed earnings reports
combined with concerns about the
Eurozones economy and debt
troubles to weigh on sentiment.
Tate & Lyle and Land Securities were
among fallers in heavy volumes after
releasing disappointing earnings updates.
Land Securities had gained 25 per cent
year to date, with Tate & Lyle adding nine
per cent in October.
These are stocks that were untouchable,
they were absolutely rock solid and they
were smashing through indicators to go
short. Finally with a sell-off starting yester-
day, it was these stocks which seemed to
drop quite sharpish, said Ed Woolfitt,
Head of Trading at Galvan, said.
It would have been longer-term runners
and well-performing companies that final-
ly buckled, and if institutions took the
profits out then that would cause the
swing. I think it began as profit taking,
then profit taking turned to fear.
The FTSE 100 index closed down 15.58
points, or 0.3 per cent, at 5,776.05, revers-
ing earlier gains and pulled down by cycli-
cal stocks sensitive to risk sentiment, such
as energy, banks and mining.
Concerns over the state of the Eurozone
resurfaced after European Central Bank
president Mario Draghi described the out-
look as a picture of weaker economies,
and traders cited fears that 31.5bn of aid
for Greece, frozen since June, may be
delayed further.
Tate & Lyle fell 0.5 per cent as the sweet-
eners and starches maker reported only a
slight rise in first-half earnings, reflecting
the cost of re-opening a factory and tough
trading in Europe. Land Securities fell two
per cent after lacklustre first-half results.
Mixed corporate earnings see FTSE
end down as Eurozone fears grow
BESTof theBROKERS
Imagination Technologies Group PLC
p 510
500
490
480
470
481.20
8 Nov
IMAGINATION
TECHNOLOGIES
UBS has upgraded the
chipmaker from sell to
neutral with a 480p
target. The broker sees
the firms purchase of
rival MIPS as positive,
but generating returns
could prove difficult.
DASHBOARD CITY
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
FTSE
5,925
5,900
5,875
5,850
5,800
5,775
5,825
5,776.05
8 Nov
RWE
p 35.5
35.0
34.5
34.0
33.5
33.47
8 Nov
RWE
Morgan Stanley rates the
German owner of Npower
overweight with a 40
target. The broker thinks
RWEs cost cutting is
adding to profits, once
unexpected events such
as withdrawal from
nuclear are discounted.
Wincanton PLC
p 78
76
74
72
68
70
66
77.00
8 Nov
WINCANTON
Numis rates the logistics
group buy and has a
price target of 90p. The
broker expects the firm
to reveal first half
earnings of 23.5m next
Monday, with gathering
momentum in its
restructuring plans.
Houlihan Lokey
Sascha Kroissenbrunner has
been appointed director in the
investment banks industrials
group. He joins from UniCredit
Group in Vienna, where he was
managing director and head of
the general industrials group for
central and eastern Europe. He
has also held senior positions at
the Royal Bank of Scotland in
London and Frankfurt.
State Street Global Advisers
Nigel Aston has been appointed to the newly-created
position of managing director and head of UK defined
contribution at the asset management firm. He joins from
DCisions, the data company, where he was business
development director. Aston has also held senior positions
at Standard Life and Axa.
Quilter
David Soutar has been appointed as an investment
manager at the investment management firm. He joins
from Castlefield Investments, where he was joint
managing partner. He has over 25 years experience in the
industry.
Bovill
Donal Martin has been appointed as a consultant in the
consulting firms funds advisory team. He joins from
Natixis, where he was acting head of compliance. Martin
has also held roles at KPMG and the Bank of Ireland.
Eversheds
Veronique Marquis has been made partner in the law firms
financial services dispute resolution team. She joins from
Simmons & Simmons, where she was a senior associate in
its financial markets group.
Equity Development
The research firm has appointed two new analysts.
Matthew OKeefe has worked at UBS, Deutsche Bank,
Merril Lynch and Societe Generale. Paul Hill has held senior
finance roles at O2, Marconi, GKN and Unilever.
WHOS SWITCHING JOBS Edited by Chris Harlow
+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
LONDONREPORT
NEW YORK
REPORT
in association with
in association with
C
OMMERCE and peace do best
together. In her history of
trade and culture in the
Renaissance, Worldly Goods,
Lisa Jardine points out that,
within days of the fall of
Constantinople in 1453, the Genoese
sent ambassadors to negotiate their
continued right to trade within the
Ottoman Empire. The work that
commerce still does today to
encourage openness and mutual
understanding across political and
cultural boundaries remains vital. In
the phrase often attributed to the
French economist Frederic Bastiat,
where goods do not cross borders,
soldiers will.
In an imperfect world, we still
need soldiers to defend our fragile
A
MERICA, we are told, is a
nation divided. But this
wasnt the closest
presidential election in
recent times. Far from it.
Barack Obama won both the popular
vote by a reasonable margin and
stormed the electoral college.
Obamas fellow Democrats also
rebuffed their opponents in races for
the Senate. The only consolation for
the Republicans is that the House of
Representatives remains firmly
under their control, and they now
hold a substantial majority of
governors in US states.
But this now means that two
unhappy terms will begin to domi-
nate the debate in America: deadlock
and the fiscal cliff. Politicians on
both sides of the aisle now face a
looming deadline over the credit-wor-
thiness of their nation. If
Republicans and Democrats cant
reach agreement by the end of the
year, a $607bn (379.8bn) package of
spending cuts and tax rises will come
into effect on 2 January 2013. Called
the fiscal cliff, its the result of fail-
cityam.com/forum
Forecasters predict
that the fiscal cliff
could reduce US GDP
by around 5 per cent
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.
26
MARK LITTLEWOOD
America is failing to face up to the
truth behind its looming fiscal cliff
ure by the US Congress in 2011 to
reach agreement on how to reduce
the federal deficit.
According to the US-based Tax
Policy Centre, if the situation isnt
resolved, taxes will rise by $500bn in
2013, as almost every tax cut enacted
since 2001 will expire. Average tax
rates will rise by 5 per cent on labour
income, by 7 per cent on capital
gains, and by more than 20 per cent
on dividends. Middle-income
Americans face an average tax
increase of almost $2,000.
Some forecasters suggest that this
could reduce US GDP by around 5 per
cent and cause unemployment to
rise to nearly 10 per cent, the latter
being a staggering statistic in histori-
cal terms. And the old adage is that if
America sneezes, Britain catches a
cold. If this is in anyway true, pre-
pare yourselves for a severe and
lengthy bout of influenza.
More likely than not because it
usually does the Washington estab-
lishment will patch together some
sort of deal to fend off such a sce-
nario in the short term. But only in
the short term.
This is why the term deadlock will
dominate so many headlines in the
coming weeks. Rarely have Americas
two political parties been so ideologi-
cally divided. The Republicans
endorse substantial reductions in
spending and a swift move to reduce
taxes. The Democrats are determined
to retain and even extend big govern-
ment programmes, and to hike the
tax burden on the affluent in an
attempt to pay for them. There is
now virtually no overlap between the
two parties.
This doesnt mean a deal cant be
patched together. But it does mean it
will be very awkward and incoher-
ent. It will amount to little more
than buying some time because sub-
stantial structural reform of tax and
spend simply isnt going to happen
in the US over the next few years.
Part of the problem is that, in this
election, America did not face up to
the problems that loom behind the
fiscal cliff. Mitt Romneys running
mate, Paul Ryan, had diligently
worked on a sensible, but largely
unambitious, attempt to begin to get
government spending under some
sort of control. Called the Path to
Prosperity, those presently reliant on
certain state benefits would general-
ly operate under existing rules, but
over the medium term state-financed
health support would be opened up
to market choice.
But Ryans proposals never quite
managed to form the centrepiece of
the Republican proposition.
Politicians are rarely rewarded for
being the bearer of bad news, even if
they are saying things which need to
be said. Its like a scene from the film
A Few Good Men. Tom Cruise asks for
the truth and Jack Nicholson shouts
back You cant handle the truth.
Ryan must feel the same way about
the American electorate.
In a democracy, the people are free
to vote for candidates who are
opposed to the law of gravity. But this
doesnt make Newtonian physics any
less true, nor does it mean a pause
button can be invoked to temporarily
stop big objects falling to the ground.
The Republicans and Democrats
may be able to patch together a com-
promise and once again postpone
the implications of the USs inability
to live within its means. But the prob-
lems will persist. In America, expect
this fiscal cliff-hanger to last for sev-
eral years to come.
Mark Littlewood is director general of the
Institute for Economic Affairs.
peace. But tomorrows Lord Mayors
Show is an opportunity to celebrate
the way arms and commerce can
work together against aggression, a
joint force for sustaining our world
of peaceful exchange.
Living on the edge of the City, the
Lord Mayors Show passes through
my neighbourhood every year. It is
an extraordinary occasion: a
combination of carnival and benign
military coup, as privileged
regiments, including the
Honourable Artillery Company,
exercise their right to march
through the City drums beating,
colours flying and with bayonets
fixed. The festival itself marks the
continuity of trade in London,
dating back to 1535 and marking the
peaceful transfer of the title of lord
mayor of the City of London to a new
alderman. But the military aspect
has older roots. In ancient Rome and
ever since, there has been a tradition
of armies reverting to civilian status
within city walls. The freedom to
march in arms through the City is a
high privilege, a statement of utter
confidence in a regiments loyalty.
Despite what some cynical
Keynesians say, war is always a
reckless destroyer, its consequences
reverberating long into the future.
Cutting short and maiming
individual lives, scarring families
and communities, it wastes persons
and wealth beyond counting. But
sometimes to preserve peace and
freedom, awful sacrifice is necessary.
This weekend, Remembrance
Sunday gives us an opportunity to
contemplate that terrible reality, and
to honour those who have died in
their countrys service. Among them
I remember Robert Laval Proudfoot,
my grandmothers first husband.
Along with so many other brave
young men, he is commemorated by
the new Bomber Command
memorial in Green Park, whose
donors include Lord Ashcroft and
John Caudwell. In the City itself, the
Garden of Remembrance at St Pauls
is already open, and the new lord
mayor will attend the special
morning service there on Sunday.
But tomorrows Lord Mayors
Show allows us to contemplate the
other, more hopeful side of the
equation as well. The ways in which,
together, military discipline and
commercial enterprise continue to
help build and maintain a resilient
peace despite the turmoil of
centuries. It is a proud legacy, and
worth celebration as much as
solemnity. Silent honour is due to
the fallen this Sunday.
Marc Sidwell is managing editor of
City A.M.
THE LONG
VIEW
MARC SIDWELL
The Lord Mayors Show: A celebration of commerce and military discipline
In association with
A lot can change in a second. Find out what, with expert analysis from Alpari Newsroom.
Losses can exceed your initial deposit.
Visit
27
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
Special relationship
[Re: It was attitudes not demographics that
determined the US campaign, yesterday]
Stephan Shakespeares insightful piece has
interesting implications for UK politics.
Firstly, David Cameron can be reassured that
a leader presiding over a lacklustre economy
wont necessarily be voted out of office. But
secondly, Cameron should be concerned
that even attitudes in the capitalist US are
turning against arguments for a smaller
state. Yes, Barack Obama won only just over
half the popular vote. But Mitt Romneys
well-articulated message that government
solutions are not always the answer clearly
didnt gain him much ground. Of course,
perhaps Britain and the US are now
sufficiently different for this to be irrelevant.
AlexSkoyles
Change of message
[Re: Ten observations on a historic election
for the United States, yesterday]
I disagree with the idea that the Republicans
dont need to somehow change their
message or tone. The party hasnt won a
truly decisive presidential victory since 1988,
when George Bush carried 40 states. Even
George W Bush only managed to cobble
together a win by slim margins in Ohio. The
Republicans do have a strong electoral base,
which is variously excited or depressed
depending on the circumstances. But many
issues are turning against them. Support for
gay marriage, for example, has risen widely
in the US. And in contrast, the Republicans
have in some ways became more narrow as
a party. Theyre less of a broad church.
KimYoung
O
NE down, one to go. The
Greek government has got
through one crucial vote
this week, and looks likely
to ride out its budget vote
on Sunday. Although markets and
Eurozone leaders will breathe a sigh
of relief, as Greece makes it through
another crucial week in its
economic crisis, the government has
not been left unscathed.
Pushing through this latest, and
supposedly last, package of stringent
economic reforms and budget cuts
has exposed deep cracks within the
governing coalition. The Democratic
Left and Pasok parties put up a fight
to slow the process of public sector
cuts, led by Prime Minister Antonis
Samaras New Democracy party. It
took two days to push the package
through parliament, while a report-
ed 100,000 Greeks took to the streets
in Athens to protest against austeri-
ty.
However, a bigger problem for the
government is the flurry of econom-
ic figures. They have again exposed
deeper flaws in the Greek economy,
propelling talk of a Greek exit from
the Eurozone back into the head-
lines. The new budget projects Greek
debt peaking at 192 per cent of GDP,
rather than the 167 per cent estimat-
ed previously. But even this revision
seems to be built on optimistic
assumptions. These projections
anticipate unemployment, invest-
ment and exports to stabilise,
despite most indicators predicting
the opposite. In fact, it is abundantly
clear that Greece will need an exten-
sion to its current bailout.
The questions to ask therefore are:
how much would such an extension
cost and how could it be funded? We
estimate that slowing the Greek fis-
cal consolidation programme by two
years could cost an extra 28.5bn
(22.7bn), rising to 39bn if Greece
TOP TWEETS
Lets hope that Mitt Romneys gracious
concession inspires Congress to be less
obstructive as the fiscal cliff looms.
@RichardDawkins
The Centre for Economics and Business
Research says the UK will grow faster than
the Eurozone in 2014. What will Labour say?
@SJacksonMP
The worlds two greatest powers have gone
through a leadership change. Only China
held it entirely behind closed doors.
@FrankMagwegwe
After the first round of quantitative easing, it
not only became ineffective as a stimulus, it
became toxic. Im glad its been stopped.
@Frances_Coppola
After the Bank of England held interest rates
at 0.5 per cent, should it soon consider a rise?
YES
Monetary policy has reached its limits in supporting growth via more
stimulus. The challenge now is to adjust to the new normal a
world which has been forged by the financial crisis and the rapid
growth of emerging market economies. As part of this adjustment,
we need to gradually return interest rates to more normal levels. That
doesnt mean going back to the level of interest rates that we saw
before the crisis; but a gradual rise to 2 to 3 per cent over the next two
to three years would provide savers with a better rate of return, which
is crucial in supporting long-term growth prospects. A gradual rate
rise starting next year would also give both consumers and businesses
time to adjust their plans. The risk of delaying a rise for too long is that
rates may need to increase more sharply in the future, which could
result in a negative shock to the economy.
Andrew Sentance is senior economic adviser at PwC and former
member of the Monetary Policy Committee.
Andrew Sentance
NO
Victoria Redwood
If the Monetary Policy Committee (MPC) is becoming disillusioned
with how much more economic benefit quantitative easing (QE)
could have, it makes sense to look at more traditional methods of
stimulating economic growth, such as a rate cut in the future. The
obstacles that the MPC has discussed in the past are not
insurmountable. Reducing interest rates to zero, or slightly above, will
have a positive impact on confidence. Most people dont understand
exactly what QE is, so pursuing policies that people do understand
may give sentiment a boost. Cutting the base rate should also result in
a fall in interest rates across the economy, for example mortgage
rates, and rates that businesses can borrow at. Recent business
surveys suggest that the recovery is still not gaining momentum, and
The sharp rise in GDP in the third quarter was due to temporary
factors. So the MPC should provide the economy with more stimulus.
Victoria Redwood is chief UK economist at Capital Economics.
RAPIDresponses
fails to borrow from the markets
which looks increasingly likely. The
main options being proposed
include: reducing the interest rates
which Greece pays on its current
bailout loans (which could raise
around 3bn over two years), or put-
ting a hold on interest payments for
a few years (which could raise more
than 10bn, but would be much
trickier legally). These options would
likely be combined with some fur-
ther austerity and increased short
term debt issuance by Greece both
of which could actually increase
Greek debt levels. This is not exactly
what is needed. The kicker is that
even this is unlikely to be enough.
The question of an extension drives
home that a larger decision on
Greeces position in the Eurozone is
closing in on EU leaders. Even talk of
using bailout loans to buy back
Greek debt at a discount and then
retiring it to provide extra funding
would require a big political deci-
sion on further loans to Greece.
However the funding is found, it will
likely involve breaking a taboo
either by the European Central Bank
helping to fund states, or more likely
by Eurozone countries allowing per-
manent transfers to a country whose
future funding is far from assured.
The Greek government and the
Eurozone will make it through this
week but this short-term success is
likely to belie the massive decisions
ahead.
Raoul Ruparel is head of economic
research at Open Europe.
RAOUL RUPAREL
Printed by Iliffe Print Cambridge, Winship Road, Milton, Cambridge CB24 6PP
Distribution helpline
If you have any comments about the
distribution of City A.M.
please ring 0203 201 8955, or email
distribution@cityam.com
Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor Marc Sidwell
News Editor Elizabeth Fournier | Business Features Editor Tom Welsh | Lifestyle Editor Steve Dinneen | Sports Editor Frank Dalleres
Creative Director Gavin Billenness
Commercial Sales Director Jeremy Slattery | Commercial Director Harry Owen | Head of Distribution Nick Owen
4th Floor, 33 Queen Street,
London, EC4R 1BR
Tel: 020 3201 8900
Fax: 020 7248 2711
Email: news@cityam.com
Editorial Statement: This newspaper adheres to the systemof self-regulation overseen by the Press Complaints Commission. The PCCtakes complaints about the editorial content of publications under the Editors Code of Practice, a copy of which can be foundat www.pcc.org.uk
have passed since this page was written.
Economic realities
push Europe closer
to a Greek decision
ALAN BENNETTS new play, People, slips
effortlessly into the canon of his work,
with its saucy Blackpool postcard
humour and undercurrent of
resentment and despair.
It takes place in a wonderfully
rendered, decaying stately home all
mouldy dust-jackets and shards of
sunlight creeping through moth-eaten
curtains.
It centres on two tragicomic spinsters:
Dorothy, to whom the house was
bequeathed, and her doddery old
companion, who whiles away the days
in front of an electric heater, knitting
scarves for the troops in the Falklands,
despite the war ending 30 years prior.
Dorothys sister has decided that
Dorothy really wants to give the house to
LIFE&STYLE
28
cityam.com
GOING OUT
The new
jobs website
for London
professionals
C
I
T
Y
A
M
C
A
R
E
E
R
S
.
c
o
m
The nations favourite playwright doesnt disappoint, says Steve Dinneen
THEATRE
PEOPLE
The Lyttleton at the National Theatre
hhhhi
the National Trust, although
Dorothy isnt quite so sure. And,
after meeting the Trust
representative, neither are we.
Bennett pulls few punches in his
portrayal of the revered
organisation (surely Bennetts core
audience), which is solely
interested in making a commodity
out of the more squalid aspects of
the familys history.
Nothing pleases him more, for
example, than learning that pots
of urine dispensed by dignitaries
including Thomas Hardy and
Neville Chamberlain are stewing in
a closet upstairs.
Dorothy refuses to see the
parallels drawn by the National
Trust between the fading grandeur
of the house and England itself (or,
at least, the idea of
Englishness) but its a parallel
that Bennett uses liberally,
lamenting the days before
everything, even a familys grief,
came with a price-tag.
Things are shaken up after a
rather unlikely chance encounter
between Dorothy and an old
flame, which leads to a
pornographic movie being filmed
in the middle of the hall (best not
to ask how, it just kind of
happens), at which point your
disbelief should be firmly filed in
the closet next to the
aforementioned chamber-pots.
The play becomes a riotous
affair, with the rogueish but
implausibly jovial group of
pornographers reawakening
Dorothys sense of fun. The flip-
side is that, while the laugh count
rises, they feel cheaper for you not
having to work very hard for them
(jokes about a porn actor failing to
achieve wood are funny but they
are not particularly clever).
Of course, though, this is still
an Alan Bennett play, and the
onion-layers of insecurity and
secrecy are slowly drawn back as
were given a heartbreaking
glance into the reasons behind
the fall of the home.
Frances de la Tour is a delight to
watch as the sassy but broken
Dorothy, struggling under the
weight of both her secrets and the
rapidly collapsing house (even
decay is a kind of progress she
quips).
Selena Cadell is excellent as her
lesbian archdeacon sister; a
character who seems to be an
older version of the sexually
frustrated vicar from Bennetts
first series of Talking Heads.
In fact, the older cast-members
rather show up their younger
counterparts, who dont quite live
up to their irrepressible elders.
Also worthy of mention is Miles
SHORT STORIES is an exhibition in
which artists use photography as
means of conveying a message or
personal experience. It begins with
self-portraits created by 20 year-old
Turkish-born artist Eylul Keskin,
who explores the journey of self-
discovery of a teenager passing
through to adulthood. One of the
most talked about artists on show,
though, is Majella, a former
prostitute and porn star. While her
photographs feel blunt and
somewhat media hungry, they are a
powerful and honest depiction of
her life.
The variety of work on display
expect everything from decaying
fruit to images from the inner
workings of a Tibetan monastery
means that youll be hard pressed to
leave without being moved by at
least one.
Short stories runs until 2 December
Linda Bassett is excellent as the doddery companion to Frances de la Tours Dorothy
Alan Bennetts People
is a riotous but touching
sideways look at England
ART
SHORT STORIES
Forman's Smokehouse Gallery, E3
hhhhi| By Naomi Mdudu
29
WHERE
TO DRINK
TIM BADHAM
THE PARISIAN-BORNphenomenon
Buddha-Bar launched last week,
reincarnated in Knightsbridge following
the closure of their Embankment-based
venue two years ago. This very different
proposition has a modern take on its
Eastern influences and is poised to reclaim
glory with delectable cuisine, incredible
decor from renowned sculptor David
Begbie, inspired mixology and the live DJ
sets for which they are famed.
Nightlife impresarios Guy Pelly and Marc
Burton have a hip and fun new opening,
Tonteria, on Sloane Square. The
mezcalera features hand-painted tiles a la
Oaxaca, Mexican plants, drinks trolleys,
beverages imbibed out of calaca skulls
and luchador masks, and staff donning
elaborate costumes from outr British
designers Sorapol and Daniel Lismore.
The equally jovial Alpine ski chalet
inspired Bodos Schloss lives up to its
Brompton Brands pedigree with a 5,000
hand carved ice castle complete with
sluice for limitless cocktails. For a touch of
Austrian authenticity there will also be a
DJ booth crafted from a ski-lift gondola,
steins, housemade schnapps, staff in
traditional lederhosen and dirndls as well
as centuries-old tiles and timber sourced
from Austria. In Fitzrovia, Movida founder
Marc Merren has opened Beat, a secret
after-hours party haven which opens its
doors to nightlifes elite from 2am till 6am
on a site that once hosted Jimi Hendrix,
David Bowie and the Sex Pistols. It blends
industrial flavours with opulent attitude:
dark leather couches and refurbished
cinema chairs are juxtaposed with
exposed brick.
Just a few streets north, the pop-up
collective behind Bonnie & Wild went
permanent with the Bonnie Gull Seafood
Shack (more seaside chic than shack), and
if you manage to secure a seat, enjoy a
selection from their cocktail menu, which
often employs aquatic ingredients like
palourde clam broth, smoked black sea
salt, and garnishes including oysters on
the half-shell and salmon roe.
To catch the next development in
Londons thriving ping pong trend, head
to Bounce in Holborn, built on the site of
table tenniss invention and featuring 17
tables and an expansive bar.
Jupp probably best known for his
appearance as the incredibly
annoying regional PR in Armando
Iannuccis The Thick of It who plays
a wickedly corrupt valuer, totting up
the worth of the various dolls houses
and croquet sets littering the stage.
People doesnt quite stand
shoulder to shoulder with the very
best of Bennetts work, but that is a
very lofty bar to aspire to. It is,
though, a sad, pertinent and very,
very funny play by a true national
treasure and you cant put a price
on that.
FILM
THE SAPPHIRES
Cert 12A | By Alex Dymoke
hhhii
SOUL MUSIC and Chris ODowds
face must be two of the most
inherently likeable things on the
planet. Given that both feature
prominently in Australian movie
The Sapphires, it is perhaps
unsurprising that the film has
landed in the UK to an
enthusiastic chorus of well-
wishing.
It follows four big-voiced
aboriginal girls, who depart from
the redneck Australian backwater
that they call home and set off on
a global adventure.
While The Sapphires is
undeniably good-hearted, it
possesses a number of flaws, not
least of which being that ODowds
character is leant on rather heavily
as the sole provider of comic relief.
About a quarter of the way
through, the film settles into a
repetitive pattern, alternating
between upbeat performances of
classic soul numbers and tedious
histrionic arguments between the
girls. These flaws prevent The
Sapphires from being the feel-
good hit that it is being hailed as.
FILM
THE ALPS
Cert 12A | By Naomi Mdudu
hhiii
FILM
MY BROTHER THE DEVIL
Cert 12A | By Naomi Mdudu
hhhhi
FILM
PEOPLE LIKE US
Cert 12A | By Alex Dymoke
hhiii
CONTRARY TOwhat the name
would suggest, this film has
nothing to do with the Alps. Its a
fitting reflection of the plot, which
hinges on things that arent what
they seem. Be warned: as much as
this Greek drama is, to some
extent, a far cry from the formulaic
nature of many Hollywood movies,
I spy with my Discerning
Eye, some hot new talent
The Sapphires is a partial hit but
The Alps has a mountain to climb
it isnt one for the impatient.
Alps is a company, which offers a
unique service to bereaved people.
Its staff impersonate the clients
deceased loved ones. The story is
played out through the eyes of one
of its staff, an unnamed nurse, who
ends up craving to assume the role
of one of the characters she plays.
The film flicks in and out of these
increasingly bizarre scenarios
without any real thread running
through them. Even by the end of
the film, you know little more about
the characters that you did when you
were first introduced to them.
AFTER HEARING about the plot of
Sally El Hosanis new film My
Brother the Devil, I wasnt
particularly thrilled. The gang crime-
focused narrative and all-too-familiar
East London council estate backdrop,
didnt exactly fill me with
confidence. I mean, do we really
need yet another myopic portrayal of
young black men in a storyline that
doesnt steer too far from
boy joins gang, boy
tries to leave gang,
boy gets brutally
killed?
But, while the
first part of the film
features all the
familiar themes
drugs,
violence,
sex this
is only
one
strand
of the
THIS YEARS ING Discerning Eye
Exhibition is gearing up for its
grand opening next week, when a
wealth of fascinating works will go
on display.
The exhibition features exciting
pieces from artists including Harry
Pye, whose poignant block-colour
paintings beautifully capture every-
day hope and despair. Also on show
are more abstract works from artists
including Alex Dewart and Phillippa
Tunstill.
Gerald Walker, chief executive of
Last years jam-packed exhibition
If only tear-ducts were obedient to
critical judgment. Few things are
more irritating than being
emotionally manipulated by a bad
film. Like unscrupulous fast food
companies, People Like Us cashes in
on the universal human weakness
for sugary junk.
Sam (Chris Pine) is a New York
salesman who is such a workaholic
that he doesnt bat an eyelid when he
gets a call from his LA-based mother
(Michelle Pfeiffer), telling him that
his father has died. He flies across
America to the funeral, only to find
he has been left nothing but a record
collection. Nothing, that is, except
for $150,000 in a bag, and
instructions to deliver it to an
address in LA, which leaves him
with a heart-rending choice
between taking the cash and doing
the right thing. The beginning
of this film promises
much. However, after
two hours of wading
through sentimental
gloop, youll resent the
emotive impact of the
denouement.
ART
ING DISCERNING EYE EXHIBITION
The Mall Galleries, The Mall, SW1
ING Commercial Banking in the UK,
Ireland and the Middle East, an avid
collector and one of this years selec-
tors, said: I hope the collection will
be seen as optimistic and uplifting
and that the selected artists will fur-
ther their ambitions to achieve criti-
cal and artistic success.
The other selectors are fellow col-
lector Doris Lockhart; artists Albert
Irvin and Chantal Joffe and critics
Charles Darwent and Skye Sherwin.
Discerning Eye was set up to:
encourage a wider understanding
and appreciation of the visual arts
and to stimulate debate about the
place and purpose of art in our soci-
ety.
The exhibition provides an oppor-
tunity for works by lesser-known
artists to be hung alongside interna-
tionally recognised names. At least a
quarter of the chosen works come
from open submissions.
The awards include the top ING
Purchase Prize, which will bestow
5,000 on the winner, and the V&A
acquisition prize, which will see one
of the works added to the collec-
tions held by the Victoria and Albert
Museum.
Last years winner was abstract
artist Neil Canning for his striking
work Ocean Current. The V&A acqui-
sition prize went to Anne Desmet
for her piece Olympic Stadium with
cranes II.
The Discerning Eye exhibition will run
until 25 November. Entrance is to the
exhibition is free.
narrative. The story is told through
the eyes of two British-born Egyptian
brothers. Instead of going down the
murder-spree route, which seems to
characterise most urban films,
crime takes a back seat to the
exploration of their relationship. Its
in these more subtle moments that
the screenplay comes to life. The
refreshing take on a tired genre may
go some way towards repairing the
damage done by Noel Clarkes
melodramatic Kidulthood and its ilk.
Chris ODowd stars
in The Sapphires
30
TV & GAMES
cityam.com
T
E
R
R
E
S
T
R
I
A
L
BBC1
SKY SPORTS 1
7pmPremier League Preview
7.30pmLive Football League
10pmThe Fantasy Football Club
11pmPremier League Preview
11.30pmGreat Matches of
European Football 11.55pm-6am
Live Test Cricket
SKY SPORTS 2
6pmLive ATP World Tour Finals
Tennis 10pmWWE: Late Night
Smackdown 12amWWE: Late
Night Bottom Line 1amAnglo-
Welsh Cup Rugby Union 2.30am
Americas Cup Discovered
3am-6amLive European Tour
Golf
SKY SPORTS 3
6.30pmTight Lines 7.30pmLive
Anglo-Welsh Cup Rugby Union.
Ospreys v Gloucester (Kick-off
7.45pm). 10pmNFL 12amFootball
League 1.30amGreat Matches of
European Football 2amFantasy
Football Club 3amPremier League
Preview3.30amFootball League
5am-6amFantasy Football Club
BRITISH EUROSPORT
6.15pmMotoGP 8.15pmSnooker
10pmMotoGP 12am-1.15am
Futsal
ESPN
7pmGoal! Bundesliga Preview
7.30pmLive Bundesliga 9.30pm
French Football 11.15pmESPN FC
Press Pass 11.45pmUFC
Primetime: St-Pierre v Condit
12.15amESPN Kicks: Extra
12.30amPremier League Preview
1amLive College Football 4am
ESPN Kicks: Extra 4.15amTotal
Italian Football 4.45am-6am
ESPN Films: Roll Tide/War Eagle
SKY LIVING
7pmCriminal Minds 8pmShow
Me Your Wardrobe 8.30pm
Nothing to Declare 9pmNikita
10pmCriminal Minds 11pm
Bones 12amSun, Sea and A&E
1amCriminal Minds 1.50am
Supernatural 2.40amMedium
3.30amBones 4.20amNothing
to Declare 5.10am-6amPassport
Patrol
BBC THREE
7pmMerlin 7.45pmDoctor Who
8.30pmWorlds Craziest Fools
9pmUnzipped. With Example and
Jerry Springer. 9.45pmRussell
Howards Good News Extra
10.30pmEastEnders 11pmSome
Girls 11.30pmFamily Guy
12.15amAmerican Dad! 1am
Russell Howards Good News
Extra 1.45amUnzipped 2.30am
Some Girls 3am-4amUnsafe Sex
in the City
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmFILM
Three Men and a Baby 1987.
10.05pmFILMUnderworld:
Evolution 2006. Action fantasy
sequel, starring Kate Beckinsale.
12.10amThe Big Bang Theory
1.05amMisfits 2.05amTool
Academy: Boyfriends Behaving
Badly 3amBalls of Steel Australia
3.50amHow I Met Your Mother
4.15amScrubs 4.40am90210
5.20am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmIce Road Truckers
9pmFull Metal Jousting 10pm
Top Shot 11pmStorage Wars
11.30pmPawn Stars 12amFull
Metal Jousting 1amTop Shot
2amAmerican Pickers 3amAx
Men 4amSwamp People 5am
Pawn Stars 5.30am-6am
American Restoration
DISCOVERY
7pmFifth Gear 8pmFast n Loud
9pmAuction Hunters 10pm
Wheeler Dealers 11pmThe Devils
Ride 12amFast n Loud 1am
Wheeler Dealers 2amAmerican
Guns 3amAuction Hunters
3.50amWheeler Dealers 4.40am
Discovery Atlas: Mexico Revealed
5.30am-6amMeerkat Manor
DISCOVERY HOME &
HEALTH
7pmDr Oz 8pmSecretly
Pregnant 9pmI Didnt Know I
Was Pregnant 10pmSupernanny
US 11pmEmergency 12amI
Didnt Know I Was Pregnant 1am
Wanted Down Under 2am
Supernanny US 3amEmergency
4amA Baby Story 5am-6am
Birth Days
SKY1
7.30pmThe Middle 8pmModern
Family 8.30pmSpy 9pmTrollied
9.30pmThe Simpsons 10pmA
League of Their Own 11pmDont
Sit in the Front Row11.30pm
Road Wars 12amBrit Cops:
Frontline Crime UK 1.55amRoad
Wars 4.10amBest of Brainiac:
Science Abuse 5.05am-6am
Brainiac: Science Abuse
BBC2 ITV1 CHANNEL4 CHANNEL5
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
6pmBBC News 6.30pmBBC
London News 7pmThe One Show
7.30pmNigel Slaters Dish of the
Day: BBC News 8pmEastEnders
8.30pmOutnumbered
9pmCHOICE Have I Got
News for You
9.30pmMe and Mrs Jones
10pmBBC News
10.25pmRegional News 10.35pm
The Graham Norton Show11.20pm
The National Lottery Friday Night
Draws 11.30pmWould I Lie to
You? 12amEastEnders 1.55am
Weatherview2amSign Zone: Hairy
Dieters: How to Love Food and Lose
Weight 3amSign Zone: Question
Time 4am-6amBBC News
6pmEggheads
6.30pmStrictly Come Dancing
It Takes Two
7pmThe Dark: Natures
Nighttime World
8pmMastermind
8.30pmGardeners World
9pmCHOICE Attenboroughs
Ark: Natural World Special
10pmQI
10.30pmNewsnight
11pmThe Review Show
11.45pmWeather 11.50pm Later
with Jools Holland 12.55amFILM
The Little Shop of Horrors 1960.
2.05amFILMBedlam1946.
3.25amBBC News 4am-6amClose
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmIsland Hospital
8.30pmCoronation Street
9pmLive Who Wants to Be a
Millionaire? Im a Celebrity
Special
10pmITV News at Ten
10.30pmLondon News
10.35pmFILMDave 1993.
12.35amJackpot247; ITV
News Headlines
3amFILMColumbo: A Friend in
Deed 1974. 4.40am-5.30amITV
Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.30pmUnreported World
7.55pm4thought.tv
8pmCome Dine with Me
9pmDerren Brown: Fear and
Faith
10pmAlan Carr: Chatty Man
11.05pmFriday Night Dinner
11.35pm8 Out of 10 Cats 12.25am
Random Acts 12.30amRicky
Gervais 12.55amMy Name Is Earl
1.20amBobs Burgers 1.45am
Allen Gregory 2.05amNapoleon
Dynamite 2.30amCharlies Angels
3.10am90210 4.35amDeal or No
Deal 5.30am-6.15amCountdown
6pmHome and Away
6.30pm5 News at 6.30
7pmThe Gadget Show:
5 News Update
8pmCHOICE Wild Things
with Dominic Monaghan:
5 News at 9
9pmThe Mentalist
10pmCastle
11pmLaw & Order: Criminal
Intent
11.55pmInside Hollywood
12amSuperCasino 3.55am
Motorsport Mundial 4.25amHouse
Doctor 4.50am Michaelas Wild
Challenge 5.10amWildlife SOS
5.35am-6amWildlife SOS.
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6 7
8 9
10
11 12 13 14
15 16 17 18 19
20
21 22
23
13 9
36
29 21
12 13
19 30
15 13 6
11 15
28 27
15 10
28
22 12
7
23
17
45 15
35
20
7
9
14
11
8
15
24
13
16
34
45 12
6
8
ACROSS
1 Bullet casing (9)
8 Jolly ___,
pirates ag (5)
9 Rod which forms
the body of an
arrow (5)
10 Bird similar to
an ostrich (3)
11 Discernment (5)
13 Follow as a
result (5)
15 Prices (5)
18 Scatter about (5)
20 Bovine
creature (3)
21 Empty area (5)
22 Principal river
of Pakistan (5)
23 Contagion (9)
DOWN
2 Kindly endorsement
and guidance (5)
3 Number in a trio (5)
4 Come forth (5)
5 Drinking vessel (5)
6 Disapproval
expressed by
pointing out faults
or shortcomings (9)
7 Else (9)
12 Brandy measure (3)
14 Mesh (3)
16 Mass of eggs
deposited by frogs (5)
17 Panorama (5)
18 Bird that resembles
a swallow (5)
19 Medium for
communication (5)
H
E
A
R
I T
O
S
L
4

P R O N G S P O R T
R P R E A O
E N T R A N T T I N
S P U M N
S A B L E P I E C E
E A
C H E S S S A L E S
O F A C P
M E T B O A R D E R
I E R L N E
C E A S E E R A S E
2 4 6 1 7 9 1
8 6 9 4 4 5 2 1
9 8 1 9 8 5 6
1 3 1 5 7 3 4
5 7 1 3 4 2
9 8 4 6 7 5 3 2 1
5 6 3 1 4 2
1 3 8 2 1 9 4
2 1 6 4 3 9 5
7 4 9 8 9 8 3 1
2 7 1 7 4 1 2
4
4
4
4
4
4
4
4
4
The nine-letter word was
RESOLVING
T
E
R
R
E
S
T
R
I
A
L
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
HAVE I GOT NEWS FOR YOU
BBC1, 9PM
Homeland actor Damian Lewis takes
the hot seat, with Simpsons actor
Harry Shearer and UKIP leader Nigel
Farage joining in the fun.
ATTENBOROUGHS ARK: NATURAL
WORLD SPECIAL BBC2, 9PM
Naturalist David Attenborough
chooses the 10 endangered animals
from around the world that he would
most like to save from extinction.
CASTLE
CHANNEL 5, 10PM
The body of a woman is found covered
in caramel sauce in a park, prompting
Castle and Beckett to venture into the
world of bondage and fetish clubs.
TVPICK
A QUARTER of the way through the
season and its clear to see that
reviving Liverpool is not going to be
an easy task for Brendan Rodgers.
The Reds opening five games
yielded just two points and there is
still a long way to go, although their
fortunes have improved in recent
weeks.
They added nine points to their
Premier League tally from the
following five games and are on
their longest unbeaten run in the
top flight since December last year.
Extending that stretch to half a
dozen games wont be easy, yet there
is a case to be made for Rodgers
team taking something from their
trip to Stamford Bridge on Sunday.
Liverpools squad for the long haul
to Russia and last nights Europa
League tie with Anzhi Makhachkala
shows just how barren the talent
pool is at the Northern Irishmans
disposal. He had no choice but to
leave half his first team at home and
it will be a huge benefit for the
Chelsea game that the likes of Steven
Gerrard, Joe Allen, Daniel Agger and,
particularly, Luis Suarez, were all
spared the journey.
Suarezs availability simply has to
be preserved at all costs. Not only is
he Rodgers sole fit striker, but hes
alone in scoring more than one
league goal for the Reds this term,
and has seven of his sides 11 in total.
The Uruguayan has netted 10
times in all competitions and his
blistering form has seen him strike
wins, United have a host of
straight-forward fixtures
coming up.
After tomorrows contest at
Aston Villa, a run of Norwich,
Queens Park Rangers, West Ham,
Reading, Sunderland, Swansea,
Newcastle, West Brom and Wigan
is only interrupted by Decembers
visit to Manchester City.
Paddy Powers 4/5 for United
to be top at Christmas looks a
steal. However, there are
probably better bets than United
to win at Villa Park, even at
Corals best price of 4/7.
The Red Devils have only kept
three clean sheets in 16 games
across all competitions, with
just one of those coming on
their travels, at Newcastle.
Clearly there are problems at
Villa, and there are far worse 5/2
shots than Paul Lamberts men
to go down, but they claimed a
vital victory at Sunderland last
time out and a point at home to
Norwich before that.
I do expect United to win, but
would prefer to have my money
on the longer price of 4/6 with
Coral for both teams to score.
Villa can be expected to dig in
and I can see the hosts heading
into the break on level terms.
Corals 16/5 for the draw half-
time / United full-time double
result is worthy of investment.
in his last three appearances.
Considering Chelsea have failed to
keep a clean sheet in seven straight
games, since they beat Nordsjaelland
4-0 in the Champions League at the
start of October, Suarez will fancy his
chances of keeping his streak going.
Corals offer of 13/2 for Suarez to
score first is one that tempts, even if
Roberto Di Matteo recalls John Terry
to shore up his leaky backline now
that the Blues skipper is free from
suspension.
Another option, albeit a volatile
one, could be a small sell of the time
of the first Liverpool goal with
Sporting Index at 55 minutes.
In terms of an outright bet, it
really is a tough game to call. There
will be plenty who pile in on Chelsea
at evens, but a cuter punt could be
the stalemate at 12/5 with Coral.
Liverpool have drawn half their
league games this term, while
Chelsea have been shaky in recent
weeks.
In the last six meetings between
the sides, Chelsea might have beaten
Liverpool 2-1 in the 2012 FA Cup
final, but they have lost the other
five, with three of those defeats
coming at the Bridge.
Rodgers reliant
on Suarez to
make a point
at the Bridge
Liverpools Luis Suarez has scored in his last three games
31
THEPUNTER
FOOTBALL TRADER
BEN CLEMINSON PREVIEWS THE BEST OF THE WEEKENDS PREMIER LEAGUE FIXTURES
CHELSEA........................................
LIVERPOOL....................................
Sunday 4.00pm
TOP of the league, Manchester
United also head the betting, at
5/4, for this seasons title.
It hasnt been plain sailing all
the way as defeats against
Everton and Tottenham testify
but they deserve both positions.
Already on a run of four league
ASTON VILLA .................................
MANCHESTER UNITED...................
Tomorrow 5.30pm
ANDRE Villas-Boas is developing a
reputation as a Marmite manager and
the jury remains out on his time at
Tottenham so far.
Mediocre in the cups and inconsistent
in the Premier League is a fair early
assessment.
A run of five wins in six league games,
with the victory at Old Trafford the
undoubted high, hints at Spurs rich
potential, but defeats at Newcastle and
at home to both Chelsea and Wigan
have done plenty to keep supporters
hopes grounded.
By the end of November we should
have a more concrete idea about their
prospects. In that time, Spurs will have
visited the Etihad and the Emirates and
have welcomed West Ham and Liverpool
to White Hart Lane.
The uncompromising run begins at
Manchester City and its hard to know
what to make of the champions.
Despite the failure of what is almost
certain to be another early Champions
League exit, City are the only team not
to have lost in the Premier League this
season.
And they have been virtually
untroubled at home, where theyve won
four and drawn once, after dropping just
two points there in 2011/12. That said,
performances havent lived up to results.
West Ham were good for the goalless
draw they held City to at Upton Park on
Saturday, while Roberto Mancinis men
were unconvincing when beating
Swansea 1-0 at home and needed late
goals in recent victories at West Brom
and Fulham.
Spurs have been better on the road
and could be more at ease away from
the pressure of their own fans.
I think it will be a tight, low-scoring
game, so would sell total goals at 2.9
with Sporting Index and the draw, at
11/4 with Coral, comes into
consideration.
Alternatively, backing Spurs with a +1
Asian handicap the equivalent of a
one-goal head start at Samvo.com at
1.89 (around 9/10) allows us to profit in
the event of a Spurs win, as well as the
draw, while stakes are returned if City
win by no more than a single goal.
MANCHESTER CITY........................
TOTTENHAM..................................
Sunday 1.30pm
n Pointers
Tottenham (+1 Asian handicap) at 1.89 with Samvo.com
Sell total goals at 2.9 with Sporting Index
n Pointers
Draw / Manchester United at 16/5 with Coral
Both teams to score at 4/6 with Coral
n Pointers
Draw at 12/5 with Coral
Suarez to score first at 13/2 with Coral
Sell time of 1st Liverpool goal at 55 minutes
with Sporting Index
PAUL Nicholls had a day to
remember last Saturday with
big race wins for Silviniaco
Conti, Tidal Bay, Kauto Stone
and Cristal Bonus, and he is set
to unleash another powerful
squad at his local track,
Wincanton, tomorrow
afternoon.
The big betting race on the
card is the Badger Ales Trophy
(3.25pm) which the champion
trainer has landed for three of
the past four years. There will
be plenty of supporters for
Michel Le Bon, who is certain to
go off favourite, but Im
worried that his only chasing
success came in a four runner
race, and he is likely to be very
short.
November is normally Emma
Lavelles best month of the
season and its looking like
business as usual this year. The
Hampshire trainer has won
with three of her last four
runners and she has some
fascinating entries at
Wincanton, none more so than
ZARRAFAKT.
The eight-year-old has won
three and finished a head
second in his four seasonal
debuts so far. That second at
Newbury just over a year ago
was quite unlucky, yet, for the
first time in his career, he
bounced back to win his second
start, admittedly nearly two
months later, over tomorrows
course and distance.
That was an exceptional
performance and once again
underlined his prowess when
fresh. With the Lavelle yard in
red-hot form, and the presence
of a Nicholls hotpot in the
field, Zarrafakt should be an
each-way price and I would be
very surprised if he finished
out of the first two.
Although Nicholls might be
disappointed in the Badger
Ales, I thoroughly expect him to
win his third Elite Hurdle in
four years in the preceding race
at 2.50pm. Zarkandar, last years
Triumph Hurdle winner, will be
a warm order, but I think he
will struggle to give 17lb to
stablemate PROSPECT WELLS,
the mount of Ruby Walsh.
The Graham Wylie-owned
seven-year-old produced some
excellent performances last
season, including a fifth in the
Supreme Novices, and
although he will eventually
appreciate stepping up in trip,
he looks well-handicapped for
tomorrows race.
Nicholls will be hoping to get
off to a flyer in the opening race
(12.35pm) if The Mole takes his
chance. He was Team Ditcheats
first ever runner for JP
McManus and the son of Great
Pretender got off the mark in
impressive style at Exeter.
However, he has to carry a
6lb penalty for that
performance and the horse he
beat, Jeremy Scotts MELODIC
RENDEZVOUS, is fancied to
reverse the form. My selection
finished second to Champagne
Fever in the Champion Bumper
at the Punchestown Festival in
May and can get off the mark
over hurdles at the second
attempt.
First time out is the time to catch Zarrafakt for in-form Lavelle
I
T has been a brilliant season
for racing with personal
highlights being there at
York to watch Frankel hose
up in the International Stakes
and then last month seeing Sir
Henry Cecils superstar bow out
of the game unbeaten with
victory in the QIPCO British
Champion Stakes at Ascot.
Doncaster tomorrow
afternoon hosts the final flat
meeting of the year and the big
betting race is the November
Handicap at 2.35pm. First
Mohican heads the market and
its not hard to see why. Another
from the Cecil yard, he was
once spoken of as their
potential Derby horse before a
series of setbacks kept him off
the track for two years.
However, the son of Tobougg
has returned to the turf in
impressive fashion, making it
three wins from three starts
when readily justifying
favouritism at Redcar and
Nottingham last month. He is
the only unbeaten horse in the
line-up and is still unexposed.
Yet, at just 7/2 with Coral,
First Mohican is short for a
typically competitive affair. A
12lb hike in the weights means
the gelding has to find further
improvement at a trip longer
than he has tried before. This is
also the quickest ground he has
encountered and with the last
favourite to win back in 1995,
Im happy to swerve him.
Nicholascopernicus is a
progressive course and distance
winner but has done all his
winning on softer ground so
Im going to chance RETRIEVE.
He may be top weight but the
ex-Australian Godolphin
inmate deserves his lofty rating
of 110, having performed
credibly in Group One company
throughout his career.
He won a useful Listed event
two starts back and was a good
second in an Italian Group One
a few weeks ago. The ground
should suit and he rates a solid
each-way proposition at 18/1
with Coral.
Another to consider is
SIRVINO at 25/1 with Coral.
This fellow doesnt win often
but is a real tryer and, now 10lb
lower than when he ran the
smart Gatewood to two and a
quarter lengths in May, he is
well-handicapped to be in the
mix.
In the nursery at 1.25pm
PIVOTAL MOVEMENT looks
the call now Inka Surprise,
whose form was franked when
Invincible Warrior landed a
Listed race here last month, has
been taken out. The Richard
Hannon-trained juvenile broke
his maiden in good style last
time out and has reportedly
been working really well at
home to suggest he can prove
much better than an opening
handicap mark of 78.
SAJJHAA is a cut above the
rest of the fillies in the 2pm and
she could be the first leg of a
double for Godolphin and
jockey Mickael Barzalona in the
10-furlong Listed race.
Excluding the disappointing
Emirates Queen, Sajhaa is rated
at least 12lb higher than the
rest of the field and her close-up
second to John Gosdens high-
class Izzi Top earlier in the
season is the best form on offer.
Finally, Jack Dexter is likely to
be very popular in the
Wentworth Stakes at 3.10pm, as
he chases Listed glory and a
memorable four-timer, but this
is a strong race and Jim Goldies
charge has been on the go for a
long time now. He has also
given the impression he is a real
soft ground lover so tomorrows
surface raises new questions.
Instead, SIRIUS PROSPECT
looks good value to repeat his
impressive win in this contest
last year. This is his time of the
year and he confirmed himself
in good shape when he got the
each-way cash for us on
Champions Day. He loves a fast
pace to aim at, which he will
certainly get, and his trainer
Dean Ivory has had a few
winners recently.
As ever, you can follow me on
Twitter @BillEsdaile for all my
latest views.
Retrieve (blue silks) is the class horse in the race and can go close for Godolphin
32
THEPUNTER
cityam.com
1700+ Shops Text CITYAM
to 82211
coral.co.uk 0800 242 232
MOBILE, ONLINE & PHONE CUSTOMERS
FREE
BET 30
BEATEN BY THE BULL: Offer only applies to / Coral customers aged 18 years or over whose accounts are registered in the UK &Republic of Ireland. Offer
is available to new & existing online, mobile or telephone customers only. We will refund all losing pre match single bets placed on the match outright and
correct score market as a free bet, up to a maximumof 100 per customer per match, if your player is beaten by the final dart being a Bullseye. Offer applies
to bets placed from 08:30 09/11/2012 18/11/2012.The refund will be in the form of a free bet token and credited to your account within 24 hours of bet
settlement. Void bets do not count towards this promotion.The free bet token will expire within 7 days of issue and must be used in its entirety on any Single
sports bet (excluding tote pool betting). The free bet token is non-refundable. Free bet stake is not included in any returns. Customers whose account becomes
closed prior to the date of settlement and void bets will not qualify for the offer. This free bet offer cannot be used in conjunction with, or contribute to any
other coral.co.uk free bet offer or promotions. 30 FREE BET OFFER: NewUK/ROI / customers, aged 18+ only. Excludes Coral shops. Make first sports bet
on single of /5+ at odds of 1/2 or greater to get up to /30 matched free bet on settlement. Free bet valid for 7 days. Free bet cannot be withdrawn and
must be wagered in full on any single sports bet. Not valid on Tote Pool betting. Free bet stake not included in returns. Offer expires 28 days fromregistration.
For full terms, see www.coral.co.uk/sports/offers/sbwelcome. You will be charged the cost of a standard SMS by your mobile network provider. Mobile
service compatible with all internet enabled handsets. Bet Responsibly. Gambleaware.co.uk Need Help? Call GamCare on 0808 802 0133.
If the match-winning dart
is a bullseye, we will
refund losing bets on the
match odds & correct score.
10/11 K. Painter v D. Winstanley 4/5 7.05pm
4/7 S. Waites v M. Webster 5/4 7.30pm
6/4 J. Dekker v M. King 1/2 8.00pm
4/9 R. Thornton v T. Hankey 13/8 8.30pm
4/11 M. van Gerwen v S. Beaton 2/1 9.00pm
1/7 P. Taylor v C. Stompe 4/1 9.30pm
1/4 S. Whitlock v J. Hubbard 11/4 10.00pm
4/11 J. Wade v A. Monk 2/1 10.30pm
GRAND SLAM OF DARTS
OUTRIGHT
Saturday 10th November
13/8 P. Taylor
8/1 A. Lewis
10/1 S. Whitlock
12/1 M. van Gerwen
14/1 J. Wade
18/1 G. Anderson
20/1 R. van Barneveld
25/1 W. Newton
28/1 A. Hamilton
33/1 M. King
33/1 C. Kist
33/1 P. Nicholson
33/1 R. Thornton
40/1 T. Jenkins
50/1 S. Waites
66/1 T. Hankey
66/1 M. Walsh
66/1 M. Webster
66/1 D. Winstanley
66/1 T. OShea
80/1 B. Dolan
80/1 J. Part
80/1 K. Painter
100/1 S. Beaton
Each-way 1/2 the odds 1-2. Others on request.
Prices subject to fluctuation.
BILL ESDAILE WITH HIS BEST BETS AT DONCASTER AND WINCANTON
Retrieve and Sirvino are the
value in November Handicap
n Pointers
PIVOTAL MOMENT 1.25pm Doncaster
(tomorrow)
SAJJHAA 2pm Doncaster (tomorrow)
RETRIEVE e/w 2.35pm Doncaster (tomorrow)
SIRVINO e/w 2.35pm Doncaster (tomorrow)
SIRIUS PROSPECT e/w 3.10pm Doncaster
(tomorrow)
n Pointers
MELODIC RENDEZVOUS 12.35pm Wincanton
(tomorrow)
PROSPECT WELLS 2.50pm Wincanton
(tomorrow)
ZARRAFAKT e/w 3.25pm Wincanton
(tomorrow)
IN BRIEF
F1 stars warned over swearing
nFORMULA ONE: Drivers have been
ordered not to swear during media
duties. Kimi Raikkonen of Lotus and
Red Bulls Sebastian Vettel swore live
on air during a TV interview after the
Abu Dhabi Grand Prix on Sunday.
Drivers could face disciplinary action if
further instances occur after a letter
from governing body the FIA.
Race row ref Clattenburg quizzed
n FOOTBALL: Referee Mark
Clattenburg is believed to have been
quizzed by the Football Association
yesterday over Chelseas claims he
racially abused midfielder John Obi
Mikel. Clattenburg, who is thought to
deny the allegations, will sit out
Premier League fixtures this weekend.
ENGLANDS Ian Bell welcomed the
return to form of batsman Kevin
Pietersen after he yesterday hit his
first century since the text messaging
row that almost ended his interna-
tional career.
Pietersen showed his customary
flamboyance in an 86-ball ton before
retiring on 110 as England plundered
408-4 against Haryana on the first day
of their final tour match before the
Test series against India.
Uncapped Nick Compton boosted
his chances of opening in next weeks
first Test with 74, while captain
Alastair Cook made 97 and Bell 57 not
out as Englands batsmen made hay
against inexperienced opponents.
Everything has gone really well for
us as a group, and for Kevin, said
Bell. Hes very much a guy who just
likes to get bat on ball, and I think
hell be very happy going into the first
Test match with that kind of innings
under his belt. Im sure hell be a lot
happier today, having scored a hun-
dred. But hell be a lot happier if he
scores one in the next Test.
Pietersen, who was dropped during
the summer for sending text mes-
sages to South Africa players denigrat-
ing then-England captain Andrew
Strauss, showcased another innova-
tive shot, a form of reverse scoop,
before retiring with cramp. The bur-
Pietersen blasts ton as
England batsmen revel
den on Englands most explosive hit-
ter is even greater following the
retirement of Strauss, though Bell is
conscious not to depend on him.
It would be great if he could come
out and play some innings like he has
in recent times, Bell added. We
know if he gets in he can turn a Test
match. So we want him in the best
nick we can. The pressure is a lot
more on the bowler when he does
things like that.
England were again restricted to
limited practice against spin, with all
but one over in the morning session
delivered by seamers and India Test
spinner Amit Mishra, captaining
Haryana, not bowling until the 51st
over. Cook fell three short of his cen-
tury when he edged a cut to wicket-
keeper Sandeep Singh with England
on 166, and Mishra took just seven
balls to trap Compton lbw before also
claiming Jonathan Trott (46).
Pietersen needed just 86 balls to hit his first century since returning to the side
WASPS hooker T Rhys Thomas insists
there will be no old pals act when
he returns to his former stomping
ground, vowing to show Cardiff
Blues no mercy in the LV= Cup this
evening.
Thomas, 30, spent almost nine
years at the Blues before joining Dai
Young at the London club this
summer and hes made an
impressive start to life in the Aviva
Premiership so far.
All my family are coming down,
its just a 10 minute drive for them
so Im looking forward to it, said
Thomas, who won the tournament
with the Blues in 2009.
I spoke to [Blues fly-half] Ceri
Sweeney, who is a good friend of
mine, on Monday. We didnt give
each other any info at all. I asked
him do you know the team? and he
said kind of, and he asked me the
same thing, and I said yes, and we
both didnt tell each other.
Meanwhile, Saracens host
Leicester tonight, Harlequins travel
to Northampton Saints tomorrow
and London Irish host Sale Sharks on
Sunday, looking to avenge their
Premiership defeat last Friday while
London Welsh host Exeter Chiefs.
Aviva is proud to be title sponsor of
Aviva Premiership Rugby one of the
worlds leading rugby union competitions.
Each season will feature 135 games, which
will be watched by 1.7m people live at the
grounds. Visit www.premiershiprugby.com
Wasp Thomas
ready to face
old pals in cup
BY FRANK DALLERES
BY PAUL EDDISON
SPORT
33
cityam.com
Pandora Style Charms 4.99 each Poppy Chain Cufflinks 15.49
Poppy Wristbands 2.49 each Buckley Brooch 14.99
Show your support for The Royal British Legion
Shop online, spend over 30 and receive a Poppy Jute Bag
uying a Poppy is not the only way you can
show your support for The Royal British
Legion. We have a fantastic range of Poppy items
and a great range of Christmas cards and gifts for
the festive season. To support our armed services
this year we have teamed up with the Poppy Shop
online www.poppyshop.org.uk to offer our readers
a range of products to suit all the family.
The stunning Buckley Brooch, as worn by the
Duchess of Cambridge, is 18ct gold plated and
inlaid with red and black crystals. Gift boxed 14.99
The Poppy Chain Cufflinks make an elegant gift
and bear the inscription We shall remember them.
Gift boxed 15.49
We have 4 Pandora style fitting Charms to
choose from which are very popular and an ideal
stocking filler. 4.99 each
Our Poppy Wristbands are a winner for all ages
and they look great worn in 2s and 3s. 2.49 each
For a full range of all our Poppy and Christmas
products please visit www.poppyshop.org.uk
If your order is over 30 add the Poppy Jute
(2.49) into your shopping basket and enter the
following code CtyAmBagPA2012 in the offer
codes box and your delivered order will include the
Poppy jute bag but at no cost to you.
Thank you for shopping at the Poppy Shop
all profits from your order go to our work
supporting ex-service men and woman and
their families. Offer ends on Monday
19 November 2012
The Royal British Legion Trading Limited. Company No 4783730 Registered charity No 219279. Terms and conditions: Free offer is until Midnight Monday 19 November.
Please allow up to 28 days for delivery once your order has been placed. For further terms and conditions go online at www.poppyshop.org.uk
Reader Offer
=FFK98CC
L<=8<LIFG8C<8>L<
>IFLG8
8eq_`%%%%%%%%%%%%%%%%%%%%%%%( ( C`m\igffc%%%%%%%%%%%%%%%%%%% ' '
G N ; C = 8 >; Gkj
8eq_` DXb_XZ_bXcX%%%%%%%%%%%% + ) ( ( + ) ) .
C`m\igffc%%%%%%%%%%%%%%%%%%%%%%%%% + ) ' ) / . ( -
Pfle^9fpj%%%%%%%%%%%%%%%%%%%% + ) ' ) 0 (' $( -
L[`e\j\%%%%%%%%%%%%%%%%%%%%%%%%%%%% + ( ( ) . 0 $) +
>IFLG;
:clY9il^^\%%%%%%%%%% ) ) E\nZXjkc\%%%%%%%%%%%%%%%%% ) )
G N ; C = 8 >; Gkj
E\nZXjkc\%%%%%%%%%%%%%%%%%%%%%%% + ) ) ' - ) + /
9fi[\Xlo%%%%%%%%%%%%%%%%%%%%%%%% + ) ( ( - + ) .
:clY9il^^\%%%%%%%%%%%%%%%%%% + ( ( ) + . $* +
DXi`k`df%%%%%%%%%%%%%%%%%%%%%%%%% + ' ) ) ( + $* )
>IFLGA
Kfkk\e_Xd%%%%%%%%%%%%%%( * DXi`Yfi%%%%%%%%%%%%%%%%%%%%%%( (
G N ; C = 8 >; Gkj
CXq`f%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% + ) ) ' , ( + /
Kfkk\e_Xd%%%%%%%%%%%%%%%%%%%%%% + ( * ' , * ) -
DXi`Yfi%%%%%%%%%%%%%%%%%%%%%%%%%%%% + ( ( ) , , ' +
GXeXk_`eX`bfj%%%%%%%%%%%%%%% + ' ) ) ) / $- )
Results
LIVERPOOL manager Brendan
Rodgers hailed his young side
despite suffering a Europa League
defeat to Guus Hiddinks Anzhi
Makhachkala in Moscow.
Lacina Traore put Anzhi ahead in
first-half stoppage time with a smart
lob over Brad Jones, having run clear
of Liverpools defence.
The towering Ivorian striker could
have had a hat-trick in the second
half, squandering chances to extend
their lead, whereas Liverpool failed
to seriously test the home keeper.
The defeat dents Liverpools hopes
of reaching the knockout stages,
with all four teams in Group A still
in with a chance of progressing and
two fixtures remaining.
Rodgers opted to rest eight key
first team players with Sundays trip
to Chelsea in mind, including
captain Steven Gerrard, Daniel Agger
and in-form striker Luis Suarez, but
remained positive.
It was a terrific team
performance against players of top
quality on a difficult pitch, but at
this level you get punished when you
make mistakes, he said. It was a
much-changed team but we still
deserved something out of the game.
We just need to be more clinical.
Traore curtails
Reds progress
TOTTENHAM manager Andre Villas-
Boas showered praise on striker
Jermain Defoe after his clinical hat-
trick sunk NK Maribor and reignited
Spurs flagging Europa League cam-
paign.
Defoes treble saw him overtake
Teddy Sheringham in the clubs all-
time scoring charts and served as a
nudge to England manager Roy
Hodgson, who has overlooked him
for next weeks friendly in Sweden.
It also spared the blushes of
defender Kyle Naughton and goal-
keeper Hugo Lloris, whose calami-
tous failure to clear invited Robert
Beric to equalise for the Slovenians
just before half-time.
Villas-Boas reaped the rewards of a
tactical gamble, switching from 4-5-1
to 4-4-2 and handing Emmanuel
Adebayor a first start of the season
alongside Defoe in a bid to earn
Tottenhams first victory in Group J.
He was amazing, the Portuguese
said of Defoe, who is now eighth in
the clubs all-time scoring chart. Its
important for him because he over-
takes Teddy Sheringhams record in
the club, which means a lot.
Villas-Boas was also pleased with
Defoes partnership with Adebayor,
which helped Spurs climb to second
in the table and rediscover their
deserted winning touch.
It was good to see, he added. It is
important for us to have this option.
It was good to see us use this system.
He [Defoe] makes the most of the
opportunities he gets. When you
have so much quality in the link-up
you have the possibility to score and
hes a good goalscorer.
Defoe fires Roy reminder
with treble to lift Spurs
Wenger strikes Wilshere deal as
Jenkinson and Osman called up
ARSENAL manager Arsene Wenger
admits he would rather Jack
Wilshere had not been called up for
next weeks England friendly
against Sweden, but has struck a
deal that will see the midfielder
play only part of the match.
Wilshere returned last month
after more than a year out with
ankle injuries, and Wenger is fearful
of the 20-year-old breaking down
again if thrust back into regular
action. However he is banned for
tomorrows visit of Fulham, while
England manager Roy Hodgson is
thought to have agreed only to field
Wilshere for 45 minutes.
The ideal solution would be [that
he wasnt involved]. He has played
three games now, and of the three
games only one full game,
said Wenger. He has been
out for 17 months and its
good to have a little break
after three games. What
we like is that he
wont play over
the weekend
so he will
recover. I
think he
needs
10 days
of good
recovery. I had Roy Hodgson on the
phone, we found a good
compromise.
He will be joined in the squad for
the first time by Carl Jenkinson next
week, once the full-back receives
clearance to switch allegiance from
Finland, whose Under-21s he played
for. Evertons Leon Osman has
earned a first call-up at the age of
31, while Liverpool teenager
Raheem Sterling and Tottenham
defender Steven Caulker, 20,
have also been included.
34
SPORT
cityam.com/sport
NEWCASTLE manager Alan Pardew
hailed the impact of forward Sammy
Ameobi after his side scored two
goals in three minutes during a
frantic first half in Brugge to snatch
a point in the Europa League.
The Belgian side went ahead on 14
minutes when a long ball caught out
Fabricio Coloccini, enabling Ivan
Trickovski to send Tim Krul the
wrong way. Matters got worse for
Newcastle five minutes later when
Jesper Jorgensen scuffed a low drive
from the edge of the area.
Magpies midfielder Vurnon Anita
clawed the away side back into the
match with a sweet looping volley
from outside the penalty area on 41
minutes before Ameobi teed up
brother Shola to poke the equaliser
moments later.
It was a great little turn from
Sammy, said Pardew. He has just
got this way of getting out of corners
that I have not seen many players
being able to get out of. He wriggles
out of situations.
Both sides had opportunities to
win the match but the point keeps
Pardews side at the top of Group D
and edges them closer to reaching
the knockout stage.
Ameobi keeps
Newcastle top
BY FRANK DALLERES
Wilshere has just returned from
a lengthy ankle injury
ANZHI MAKHACHKALA...............1
LIVERPOOL ................................0
BY ALEX SHARP
EUROPA LEAGUE
@cityam_sport
CLUB BRUGES ............................2
NEWCASTLE UNITED..................2
BY ALEX SHARP
EUROPA LEAGUE
Three successive draws had left
Tottenham in dire need of a win and
Defoe set them on their way after 22
minutes when he deftly touched in a
whipped cross from winger Gareth
Bale, who was at his rampant best.
France No1 Lloris, who has made
clear his displeasure at playing sec-
ond fiddle to Brad Friedel at Spurs,
did his cause no favours by trying to
dribble past Beric but instead gifting
him an open goal, after Naughtons
dreadful backpass.
Defoe ruthlessly restored the Spurs
lead four minutes after the break,
before Adebayor dragged a point-
blank volley wide when teed up by
Bales scooped pass. Defoe was more
accepting of Bales gifts, tapping from
eight yards after the Welshman was
released down the left and delivered
a perfectly weighted low cross.
Lazio 4 2 2 0 5 1 8
Tottenham 4 1 3 0 5 3 6
Maribor 4 1 1 2 5 5 4
Panathinaikos 4 0 2 2 2 8 2
GROUP J
TEAM PLD W D L F A PTS
GREAT WALL FORSTER
CELTIC goalkeeper Fraser Forsters
inclusion in the England squad has been
given the blessing of the Spanish press,
with heavy praise heaped on the 24-
year-old shot-stoppers heroic
performance in the Hoops historic 2-1
Champions League victory against
Barcelona on Tuesday.
Northumberland-born Forster, who
yesterday received his second call-up,
was christened La Gran Muralla The
Great Wall by Catalan newspaper
Mundo Deportivo after making 13 saves
during a constant besiegement of his
goal, with Lionel Messi only managing to
score in stoppage time. Other sections of
the Spanish media also paid tribute to
the ex-Newcastle man, with daily sports
paper Marca attributing Celtics success
to an amazing performance by Fraser
Forster in goal. Radio station Cadena
SER specified that some memorable
stops by Fraser Forster helped to
counter Barcelonas dominance.
By Tom Shepherd
TOTTENHAM HOTSPUR ..............3
NK MARIBOR ..............................1
BY FRANK DALLERES
EUROPA LEAGUE
Defoes hat-trick saw him overtake Teddy Sheringham and climb to eighth in the clubs all-time scoring chart
35
The world No2 has reached the season ending tournaments semi-finals 10 times in 11
ENGLAND head coach Stuart
Lancaster has hailed the
metamorphosis of Leicesters Tom
Youngs from centre to Test hooker
after handing the 25-year-old his
international debut in tomorrows
clash with Fiji.
Youngs, whose scrum-half
brother Ben will start the first of
this months four Tests on the
bench, is one of five changes from
Englands last match against South
Africa in June and replaces the
injured Dylan Hartley.
He only switched positions three
years ago and still has just seven
Aviva Premiership starts at hooker
to his name, but did enough in
midweek matches during the
summer tour to impress Lancaster.
There are not many centres
who transfer from hooker, so
mental resilience and toughness is
one of his strengths. So too are his
physicality, his handling, his
defence and his set piece, said
Lancaster.
He has areas to work on but the
scrum power he brings is
phenomenal. People make a lot of
his throwing but he has done it
consistently in big games. He
deserves his chance.
Harlequins captain Chris
Robshaw returns to the back row
alongside Tom Johnson of Exeter
and Leicesters Thomas Waldrom
to skipper an inexperienced
England side against the Pacific
islanders at
Twickenham.
Gloucesters
Charlie
Sharples and
Quins Ugo
Monye are
restored to
the wings,
in place
of the
suspended Chris Ashton and the
injured Ben Foden respectively,
while the other change sees
Saracens centre Brad Barritt
deputise for Jonathan Joseph of
London Irish, who has an ankle
problem.
Uncapped Wasps forward Joe
Launchbury and fellow
international newcomer, Saracens
prop Mako Vunipola, join Ben
Youngs and Northampton flanker
Tom Wood among the
replacements.
Fiji represent the easiest task of
a daunting November for
Lancasters injury-depleted squad,
who host the cream of the
southern hemisphere in the form
of Australia, South Africa and New
Zealand this month.
This is the start of a huge four-
week journey for us that will test
us in every way. It is about putting
a marker down at the start of this
series, Lancaster added.
There is a lot of consistency
from the South Africa tour,
particularly the team that played,
in the last Test, which is based on
form in the Premiership.
Englands starting line-up,
which is also missing prop Alex
Corbisiero and flanker Courtney
Lawes, boasts just 215 caps in
total, even fewer than in
Lancasters first match in charge
against Scotland in February.
Pietersen puts text message row
behind him with century in India
Test warm-up
cityam.com
BY FRANK DALLERES
Versatile Youngs can
handle England Test
job, insists Lancaster
TEAM TO FACE FIJI
A Goode (Saracens); C Sharples
(Gloucester), M Tuilagi (Leicester), B
Barritt (Saracens), U Monye (Harlequins);
T Flood (Leicester), D Care (Harlequins);
J Marler (Harlequins), T Youngs
(Leicester), D Cole (Leicester), T Palmer
(Wasps), G Parling (Leicester), T Johnson
(Exeter), C Robshaw (Harlequins, capt), T
Waldrom (Leicester).
Replacements: D Paice (London Irish), D
Wilson (Bath), M Vunipola (Saracens), J
Launchbury (Wasps), T Wood
(Northampton), B Youngs (Leicester), O
Farrell (Saracens), M Brown (Harlequins)
WORLD No2 Roger Federer is relish-
ing the chance to win his seventh end
of season championships, after yester-
day becoming the first player to qual-
ify for the last four of the Barclays ATP
World Tour Finals with a straight sets
victory over David Ferrer.
The 17-time grand slam champion
faced 10 break points against the
world No5 but prevailed 6-4, 7-6 (7-5)
to take his impressive record over the
Spaniard to 14-0. Federer has now
managed to reach the semi-finals 10
times in 11 appearances at the season-
ending tournament.
The Swiss clearly feels at home in
London, having won his seventh
Wimbledon title and an Olympic sil-
ver medal here in the summer.
Its always been the tournament I
wanted to be part of when I started
playing at the beginning of the year,
Federer said. I had breakthrough
results at this event. I learned a lot.
Ive loved everywhere Ive played over
the years at the World Tour Finals. I
think this one is obviously special,
because its in London and the O2 is
an amazing venue.
Ferrer struggled to keep up with
his imperious opponent in the open-
ing exchanges, failing to convert
three break points in each of
Federers opening service games to go
3-0 down. However the dogged
Spaniard composed himself and won
three successive games with his typi-
cal relentless brand of tennis.
The crucial break came in the 10th
game when Federers sublime
groundstrokes forced the errors from
Ferrer, who was left rueing those
missed early chances.
Service dominated the second set
with Ferrer failing to convert a fur-
ther series of break-points. At 5-6, the
Spaniard won four straight points
from 0-30 to force the set to tie-break.
But Federers exquisite variety and
well-placed serves moved him 6-3 up
and clinched another victory. Ferrer
must defeat Janko Tipsarevic tomor-
row to guarantee his progress.
Meanwhile 2009 US Open champi-
on Juan Martin Del Potro boosted his
chances of qualifying by defeating
Tipsarevic 6-0, 6-4, and plays Federer
tomorrow to try to secure his place.
He may not go through if Ferrer beats
Tipsarevic, even with a win.
Federer downs Ferrer to
race into Finals last four
BY ALEX SHARP
Wiggins coach Sutton injured in bike crash
BRITISH Cycling has called on the
government to do more to protect
riders after head coach Shane
Sutton suffered bleeding on the
brain in an accident yesterday, just
hours after Tour de France winner
Bradley Wiggins broke ribs in a
separate bike crash.
Sutton, who leads a team of
coaches who work with Wiggins, is
expected to remain in hospital for
tests following the collision with a
Peugeot 205 in Manchester,
yesterday morning. The Australian
55-year-old, who was awarded the
OBE in 2010, cannot remember the
accident but was able to speak to
British Cycling officials.
Wiggins was discharged from
hospital yesterday as he recovers
from a fractured rib and broken
index finger sustained when he
collided with a van while on a
training ride near his Lancashire
home on Wednesday evening.
It is extremely rare that our
riders and coaches are hurt while
out cycling on the road, even rarer
that two incidents should occur in a
short space of time, and we wish
Shane and Bradley a speedy
recovery, said a spokesperson for
British Cycling.
Cycling is not an intrinsically
dangerous activity but there is much
more to be done to improve
conditions for cyclists on the roads.
British Cycling is calling on the
government to put cycling at the
heart of transport policy to ensure
that cycle safety is built into the
design of all new roads, junctions
and transport projects, rather than
being an afterthought.
Wiggins, who made history this
year by following his landmark Tour
triumph with a gold medal in the
London 2012 Olympic road racing
time trial, was thrown off his bike
when he collided with a Vauxhall
Astra van that had pulled out of a
petrol station forecourt.
Team Sky played down his
injuries, saying they expected him to
make a full and speedy recovery.
More than 19,000 cyclists were
injured, 3,000 seriously injured and
107 killed in road accidents last year,
according to the Royal Society for the
Prevention of Accidents.
Wiggins former Team Sky
colleague Mark Cavendish wrote on
Twitter: Really wishing my friend
Bradley Wiggins a speedy recovery in
hospital after being knocked off his
bike by a car yesterday.
BY FRANK DALLERES
CALCULATORS will be at the ready
when Britains Andy Murray faces
Frenchman Jo-Wilfried Tsonga
today at the 02 Arena in what
could be a complex finish to the
final group matches of the ATP
World Tour Finals.
The round-robin set up of the
group stages means that all four
men in Group A technically stand a
chance of progressing through to
the semi-finals, with world No1
Novak Djokovic and Tomas Berdych
also playing later today.
Complications arise if match
wins alone produce no clear victor,
in which case a comparison of
head-to-head set and game
percentage will determine the two
progressing players. Its a heavily
debated system that means a win
today for Murray does not
necessarily guarantee him safely
through. Murray starts the match
favourite to beat Tsonga, having
won six of their previous seven
encounters, including the semi-
final clash on the Scotsmans path
to this years Wimbledon final.
BY TOM SHEPHERD
Beating Tsonga no guarantee
of semi-final place for Murray
Youngs has made only seven Premiership
starts since switching to hooker
TODAYS MATCHES
Singles
N Djokovic v T Berdych (1.45pm)
A Murray v JW Tsonga (7:45pm)
Doubles
Mrnyi/Nestor v Bhupathi/Bopanna (noon)
Lindstedt/Tecau v Marray/Nielsen (6pm)
Sutton suffered bleeding on the brain
Cricket: Page 33

Power To The People: City Blasts Euro Boss Over Growth Claims

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Power To The People: City Blasts Euro Boss Over Growth Claims

Uploaded by

Copyright:

Available Formats

ON THE DAY THAT YOUTH UNEMPLOYMENT IN GREECE REACHED A SHOCKING 58 PER CENT HIGH

BUSINESS WITH PERSONALITY

I dont know. Whatever you do with

Market doubts Commerzbank

Morrisons third quarter update was as challenged as feared, with like-

WHAT DOES THE FUTURE

CLIVE BLACK SHORE CAPITAL

JAMES GRZINIC DEUTSCHE BANK

You might also like