taxpayers is predicted to push the

public sectors debt to an eye-watering

140 per cent of GDP by 2060.
With a higher level of migration, the
OBR expects that the national debt
will stay much lower, below 80 per
cent in the same period.
Gas prices may
fall by quarter
thanks to shale
GAS PRICES in the UK could fall by
as much as a quarter if the country
successfully exploits its shale gas
reserves, according to a
government-commissioned report
released yesterday.
The most optimistic scenario
plotted by consultants predicts that
the gas price will drop by more than
25 per cent by 2030, potentially
saving families hundreds of pounds
a year in energy costs.
Even if Britain fails to get drilling
on a large scale, the reports
authors forecast that the gas price
will still fall 10 per cent by 2020.
This is because the worldwide shale
gas boom will boost global gas
supplies.
The report, commissioned by the
Department of Energy and Climate
Change, yesterday appeared on the
governments website with little
fanfare. It contradicts recent claims
from energy secretary Ed Davey
that shale will have little effect on
UK energy bills and the country
should instead invest in renewable
energy.
Shale gas has already
revolutionised the US energy
market and last month it was
announced that substantial reserves
have been identified under
Lancashire and Yorkshire.
But it remains controversial as
the gas is recovered through a
process known as fracking that
involves blasting high pressure
water through rock. Exploratory
drilling was held responsible for
small earthquakes in the Blackpool
area in 2011.
Despite the Conservatives trying to cut net immigration, the report says more workers would help George Osborne balance the books
BY JAMES WATERSON
FTSE 100 6,571.93 +15.58 DOW15,470.52 +18.67 NASDAQ 3,610.00 +11.50 /$ 1.521 +0.007 / 1.160 +0.009 /$ t1.311 -0.005
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DEBATE: The Forum, Page 19

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WHY THE BANKS CONSENSUS WILL PROVE SHORT-LIVED
ANDREW SENTANCE
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See Page 3 and The Forum, Page 18
THE SPIRALLING cost of pensions,
health and social care for the elderly
mean the UK faces tens of billions of
pounds in spending cuts or tax hikes
every year, the governments fiscal
watchdog warned yesterday.
The Office for Budget Responsibility
(OBR) said that the changing age of
the population would put the public
purse on an unsustainable path
unless the government accepts severe
budget changes or an increase in
working migrants.
Spending on the elderly is expected
to soar over the next 50 years,
reaching the size of a fifth of Britains
output. The OBR predicts health
spending to rise from the equivalent
of seven per cent of annual GDP to
8.8 per cent, state pensions from 5.8 to
8.4 per cent, and social care from 1.3
to 2.4 per cent.
The independent forecaster warned
that any plans for more spending now
must take into account the millions of
baby boomers heading into old age.
Policymakers should certainly think
carefully about the long-term conse-
quences of any policies they introduce
or propose in the short term, it said.
In the absence of offsetting tax
increases or spending cuts, the pres-
sure we have identified would eventu-
ally increase the budget deficit
sufficiently to put public sector net
debt on an unsustainable upward
path, the report also warned.
The daunting figures show the
significant fiscal consolidation that
future governments will need to con-
sider. If the UKs national debt is to be
eliminated in the same period, the
Treasury would have to commit to an
extra 29bn of permanent spending
cuts or tax increases each year. Even
reducing the public sectors debt to
the equivalent of 40 per cent of
annual GDP will require 19bn more
annual cuts, on top of existing plans.
The study also demonstrates the
expected effect of migration on debt.
If the population is not increased by
immigration, the lack of working-age
THURSDAY 18 JULY 2013
2
NEWS
To contact the newsdesk email news@cityam.com
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
T
HERE is no better way to get
depressed than to study the
Office for Budget
Responsibilitys long-term
forecasts for the British economy. Im
sorry to have to write about this on
such a beautiful summers day, but
its a disturbing and crucially
important story.
The biggest danger is that our ageing
population will push up spending and
the national debt probably by a great
deal or possibly (and in my view most
likely) by a cripplingly large amount.
Of course, if the economy were to sud-
denly do much better than anybody
expects or the labour force were to
rise substantially as a result of a liberal
immigration policy we could still
avoid a fiscal crisis.
But my own hunch is that the only
way we can realistically cope with this
is to drastically reform the public sec-
tor and move towards a European,
EDITORS
LETTER
ALLISTER HEATH
Welfare state needs reform to avoid a long-term fiscal crisis
Australian or Singaporean retirement
and health system, where people have
far greater responsibility for their own
lives and there is a mixed economy in
healthcare, rather than one dominat-
ed by public financing.
The central forecast for the UKs pri-
mary budget balance (excluding
spending on interest) is projected by
the OBR to move from a surplus of 0.9
per cent of GDP in 2017-18 to 2.1 per
cent of GDP in 2020-21 and then to a
deficit of 1.8 per cent of GDP in 2062-
63 an overall deterioration of 2.7 per
cent of GDP, and a structural deterio-
ration of 4.2 per cent of GDP, 65bn in
todays terms. The net debt would rise
from 76 per cent of GDP in 2012-13 to
99 per cent by 2062-63.
So much for the central assumption:
really, really bad but arguably not
totally nightmarish.
The problem is if some of the worse-
case scenarios are considered: for
example, that the population ages far
more than expected, that the govern-
ment enforces a zero net migration
rule or that productivity turns out to
be much lower than it has been in the
past. The result would be catastrophic:
spending as a share of GDP would rise
by between 2.5 per cent and 7.6 per
cent of GDP more than expected
under the central scenario, crippling
the public finances and forcing either
massive spending cuts or huge tax
hikes. The other big variable is health
spending: if productivity in the NHS
per cent of GDP by the early 2020s and
to an insignificant 0.03 per cent of
GDP by 2040-41. Shale gas could come
to our rescue when it comes to energy
output but even it will never be
enough to restore the finances of an
ageing population.
WARHOLS WISDOM
EVERY so often, one comes up with a
quote from an unexpected source that
is worth sharing. Heres one from
Andy Warhol, spotted by author Avril
Millar. Writing in The Philosophy of
Andy Warhol, the great artist was spot
on. Being good in business is the
most fascinating kind of art. Making
money is art and working is art and
good business is the best art.
Shame so few people see it that way
in our contemporary culture.
goes up by just one per cent a year, the
national debt would rocket to close to
211 per cent of GDP by 2062-63. Again,
this would be disastrous.
The report also reminds us of the
extent of the collapse in North Sea out-
put in recent years, an important
cause of our decline which is
unrelated to the damage caused by the
bubble and bust. Total oil and gas pro-
duction has fallen every year since
1999, on average by 7.8 per cent per
annum, with falls of 19 per cent in
2011 and 14 per cent in 2012.
The OBR thinks there will now be a
pause over the next five years but the
long-term future is grim. Between
today and 2040-41, oil and gas output
is expected to fall on average by five
per cent a year. Revenues were worth
roughly 0.85 per cent of GDP in the
late 2000s and were still about 0.5 per
cent last year.
But they will collapse to around 0.1
Unemployment down but
more time spent jobless
THE NUMBER of people without jobs
who are looking for work fell by
57,000 between March and May,
against the previous three months,
the Office for National Statistics (ONS)
revealed yesterday.
Yet the number of people who are
unemployed for more than a year or
two is on the rise. In the same space of
time, 15,000 more people have been
unemployed for more than a year, and
11,000 for more than two.
The unemployment rate fell to 7.8
per cent, in comparison to eight per
cent for December 2012 to February
this year. The total number of people
unemployed in the UK is 2.52m.
In London unemployment fell
notably compared to the previous
three months, down 16,000 to a total
of 368,000. The jobless rate in the cap-
ital stands at 8.6 per cent nonetheless,
above the UK average.
A stronger pace of job creation
would be necessary to deliver a signif-
icant fall in the UK unemployment
rate, said Barclays Blerina Urici,
adding that there is limited scope for
the rate to fall considerably.
The number of people who are
classed as economically inactive, not
in work or looking for work, rose by
Higher salaries to offset bonus cap
Four out of five European banks plan to raise
executive base salaries to counter regulation-
driven bonus cuts next year, potentially
undermining the effectiveness of the planned
variable pay cap in bringing down pay. An EU-
wide bonus cap will from 2014 limit variable pay
to up to twice the level of salary. However, 79 per
cent of European banks surveyed by Mercer, the
consultancy, said they were planning to raise
base pay for the employees affected. Half the
banks said they would keep overall pay levels
mostly unchanged next year.
Four traders sue Deutsche Bank
Four former Deutsche Bank traders have sued
Germanys largest lender for wrongful dismissal,
after being fired in an internal investigation into
the manipulation of benchmark interbank
lending rates. The traders are suing at a German
labour court in Frankfurt, where they used to
work at the banks money market desk.
UK and Ireland plan visa-free area
London and Dublin plan to create a mini-
Schengen area to enable business travellers and
tourists from fast-growing Asian economies to
travel on common visas between the two islands.
JC Flowers to buy Northern Rock loans
American private equity company JC Flowers is
set to buy 450m of Northern Rock loans from
the government in what will be one of the
biggest deals of its type. Negotations are in the
final stages and an announcement is likely within
the next few days.
Monsanto drops GM in Europe
Biotechnology company Monsanto is to abandon
attempts to launch new genetically modified
products in Europe after years of frustration with
bureaucrats in Brussels.
Many behind on business rate pay
One in seven business premises has been hit with
a court summons over the past year after the
occupier fell behind with business rate payments,
equivalent to more than 250,000 business
premises in England.
BT attacked over rural broadband
Telecoms executives attacked the government for
moving the goalposts on a subsidy scheme to
provide superfast broadband to rural homes and
businesses so that BT was effectively awarded
1.2bn in public money without competition.
EU seeks power over radio spectrum
The European Unions executive body wants
greater power to reject government plans to
auction off valuable radio spectrum, according to
new proposals for EU legislation, a step likely to
be seen in some member countries as excessive
intrusion into their national affairs.
Passengers sue over Asiana crash
Two passengers aboard the Asiana Airliens flight
that crashed while touching down in San
Francisco have sued the airline.
CHINA needs to take decisive
measures to ensure its economy
continues to grow amid growing
domestic problems, the
International Monetary Fund (IMF)
said yesterday.
IMF officials said in a report that
the worlds second biggest
economy has grown too reliant on
debt and investment driven by
exports.
A package of reforms is needed
to contain the growing risks while
transitioning the economy to a
more consumer-based, inclusive,
and environmentally-friendly
growth path, it explained.
By contrast, British chancellor
George Osborne was yesterday
boosted when the IMFs directors
who represent national
governments ignored their own
officials and backed his austerity
agenda, saying it is required to
preserve credibility.
But IMF officials repeated their
concerns that the UK is still far
away from a strong and
sustainable recovery.
They said government spending
cuts have hurt growth and
recommended bringing forward
planned spending on
infrastructure.
JOBS MARKET STRENGTHENING SLOWLY
STILL STRUGGLING TO BRING UNEMPLOYMENT DOWN
8.5
8.0
7.5
7.0
6.5
6.0
5.5
5.0
MAY 2012 - MAY 2013
2008 2009 2010 2011 2012 2013
Rate of unemployment
Source: ONS
UNEMPLOYMENT
57,000
11,000
more people
unemployed for
over 2 years
AVERAGE
EARNINGS
1%
6.0
5.5
5.0
12 - MAY 2013
20

BUT
INFLATION
at 2.4%
IMF warns China
as Osborne gets
backing on cuts
BY JAMES WATERSON
BY MICHAEL BIRD
87,000 in the same period up to May.
The rate of employment stood at 71.4
per cent, up by only 0.1 per cent from
earlier in the year, but down on 12
months earlier.
Youth employment also fell between
March and May, to 3.63m. The number
of people aged 16-24 in work dipped by
31,000. But the number of
unemployed young people also fell,
down to 959,000, a fall of 20,000. This
figure includes full time students who
are looking for work.
Yesterday, the Organisation for
Economic Co-operation and
Developments employment outlook
lauded the UK and other countries,
which passed labour market reforms
in the 1990s, suggesting that such
action had allowed them to more suc-
cessfully limit unemployment since
the financial crisis.
WHAT THE OTHER PAPERS SAY THIS MORNING
Find your next step at
CITYAMCAREERS.com
US MONEY printing could continue
apace into next year after Fed
chairman Ben Bernanke last night
hinted that he might wait longer
than previously expected before
slowing down the pace of its
quantitative easing programme.
Markets rose gently on the
speech, as The Fed boss tried to
calm traders.
A highly accommodative
monetary policy will remain
appropriate for the foreseeable
future, he said.
Money printing
set to continue
BY TIM WALLACE
BANKING giant Santander yesterday
said it would scrap packaged deals on
paid-for current accounts, in a move
that will affect hundreds of
thousands of customers.
Packaged accounts offer add-ons
such as phone insurance for a fee
that can hit 20 a month. Santander
will scrap all such accounts from 19
October, citing a desire to simplify its
service. Regulators have also recently
taken an interest in the products.
Santander cuts
paid accounts
BY JAMES WATERSON
THURSDAY 18 JULY 2013
3
NEWS
cityam.com
The Banks rate-setters unanimously voted against more QE during Carneys first meeting
THE BANK of Englands rate-setting
monetary policy committee (MPC)
voted unanimously to reject more QE
earlier this month, according to min-
utes released yesterday.
Interest rates were also unchanged
during the July meeting, which was
Mark Carneys first as the new gover-
nor. Nine MPC members voted for no
increase in the Banks quantitative eas-
ing programme, while none voted
against, breaking the regular stale-
mate which occurred during the last
months of Sir Mervyn Kings time at
the Bank.
Sterling strengthened on the
announcement, rising to over $1.52
immediately afterwards, up by 0.66
per cent. Despite the move, the MPC
suggested that rising short-term inter-
est rates were not reflecting the con-
tinued weakness of the economy. UK
developments, while broadly positive,
had not been enough to warrant such
an upward move in the near-term
path of bank rate, the minutes said.
David Tinsley of BNP Paribas suggest-
Carney unites
Bank against
more stimulus
BY MICHAEL BIRD
ed that there were still likely to be
different opinions among the MPC
members. The majority, probably six
members, do not currently see more
stimulus required. He added: For the
others on the committee some addi-
tional stimulus over and above this
would be required, with the mix to be
decided.
For the previous five months, King
had voted for 25bn more asset pur-
chases, along with two other mem-
bers, with six others voting against.
The MPC will report in August on
whether to adopt forward guidance
and new thresholds.
Sterling bounces after MPC minutes
23:01 01:01 03:01 05:01 07:01 09:01
1.522
1.520
1.518
1.516
1.514
1.512
1.510
SterlinginUSdollars
17Jul
THE SERIOUS Fraud Office (SFO)
yesterday admitted that its costs
have risen even as the number of
successful prosecutions continues
to fall.
The troubled watchdogs annual
report shows it brought 12 cases
involving 20 defendants to trial
during 2012-13, with a conviction
rate of 70 per cent.
This is down on the 19 cases the
SFO brought to trial the previous
year, when it also achieved a higher
conviction rate. The total sums
recovered from people involved in
Serious Fraud Office sees costs
rise and conviction rates drop
BY JAMES WATERSON
fraudulent activity also fell from
50.2m to just 11.4m.
The report was published the day
after MPs attacked ex-SFO director
Richard Alderman for agreeing
excessive pay deals with top
executives. His replacement as
director, David Green, yesterday
said radical changes have been
made since he took over in April.
Paul Lomas, a partner with
Freshfields, last night warned that
poor conviction rates could tempt
the SFO to rely on its forthcoming
ability to impose substantial fines
on firms rather than prosecute
fraud cases in court.
GlaxoSmithKline finance exec
prevented from leaving China
PHARMACEUTICALS company
GlaxoSmithKlines head of
finance for China has been
prevented from leaving the
country, it emerged yesterday.
Steve Nechelput has been under
travel restrictions since the end of
June, although he has not been
detained or arrested, said a GSK
spokesperson.
Chinese authorities have
accused the FTSE 100 company of
being the ringleader in a 3bn
(320m) bribery scandal and
BY SUZIE NEUWIRTH
detained four senior executives
earlier this week, one of whom
appeared on state television
appearing to confess.
We are in contact with
GlaxoSmithKline both in the UK
and China and we are in the
process of seeking more
information from the Chinese
authorities, a British foreign
office spokesman told City A.M.
We are in contact with a British
national who has not been
arrested or detained there, he
added.
Steve Nechelput, GSK finance head in China
THURSDAY 18 JULY 2013
4
NEWS
cityam.com
Chief executive Brian Moynihan has led the plan to turn the troubled lender around
BNY Mellon shares leap as asset
management book grows again
PROFITS increased 78.8 per cent at
BNY Mellon, the bank said yesterday,
as it gained from improved market
conditions in the second quarter.
The custodian bank saw fee
revenues rise 13 per cent on the year
to $3.2bn (2.1bn) on improved
market performance, and net
interest revenues edge up 3.1 per
cent to $757m.
That pushed profits up to $833m,
BY TIM WALLACE
up from $466m in the second
quarter of 2012.
BNY Mellon recorded $21bn in net
long-term inflows in the quarter,
while assets under management
increased 10 per cent on the same
period of 2012 to $1.43 trillion.
Foreign exchange and other
trading activity brought in revenues
of $207m, up 15 per cent on the year.
And the bank made a profit of
$109m on an equity investment.
Headcount edged up 1,500 to
49,800 over the year, while the
banks Basel III core tier one capital
ratio increased from 8.7 per cent to
9.3 per cent and return on common
equity improved from 5.5 per cent to
9.7 per cent.
Our solid revenue growth is a
reflection of better market
conditions, as well as our success in
collaborating across the company to
deliver solutions our clients need,
said chief Gerald Hassell.
Its shares rose 1.9 per cent.
BANK of America Merrill Lynch (BAML)
reported a 70 per cent jump in profits
for the second quarter yesterday as the
recovery pushed volumes up.
And the figure was further bolstered
by the lender keeping a tight rein on
costs, most notably by cutting 18,300
staff over the last year, a 6.6 per cent fall
in its workforce.
Profits came in at $4bn (2.6bn), up
from $2.5bn in the same period of 2012
and up from $1.48bn in the first
quarter of 2012.
Total revenues climbed 3.4 per cent to
$22.9bn, while provisions for bad loans
fell 31.7 per cent to $1.2bn and non-
interest expenses fell $1bn to $16bn.
Consumer and business banking
profits increased 15 per cent to $1.4bn,
but entirely on falling costs revenues
dipped on the year, down 0.8 per cent.
But that was far outstripped by a 16
per cent fall in bad loan provisions and
a 5.4 per cent fall in other costs.
Investment management profit grew
strongly, rising 38.2 per cent to $758m
thanks to improved revenues on
market buoyancy.
BAML earnings
soar on tough
job cutting plan
BY TIM WALLACE
And investment banking fees shot up
36 per cent to $1.6bn, largely on
improving debt and equity underwrit-
ing volumes.
BAMLs Basel III core tier one capital
ratio increased from 7.95 per cent a
year ago to 9.6 per cent at the end of
the second quarter.
And its return on equity increased
from 3.94 per cent in the first half of
2012 to 6.84 per cent so far this year.
We must keep improving, but with
the consumer recovering and business-
es strong, we have lots of opportunity
ahead, said chief executive Brian
Moynihan.
BAML shares rose 2.8 per cent.
Bank of America Corp
17Jul 11 Jul 12Jul 15Jul 16Jul
14.25
14.50
14.00
13.75
13.50
$
14.31
17Jul
FRENCH banks including Societe
Generale, BNP Paribas and Credit
Agricole were hit by credit rating
downgrades yesterday in the wake
of the countrys rating cut.
Fitch said it had lowered the
status of the banks from A+ to A,
following its decision to lower
Frances credit score from AAA to
A+ last week.
The downgrade of the French
state means that Fitch considers
its ability to support French banks
has decreased slightly, it said
yesterday.
The agency also reduced the
Fitch cuts French banks ratings
after downgrading the country
BY MARION DAKERS
rating of several French regions
and the state postal service La
Poste to reflect the nations new
status.
This week Fitch also lowered the
rating of Europes rescue fund, the
European Financial Stability
Facility, to AA+.
France, Europes second-biggest
economy, lost its prized AAA
rating from Standard & Poors and
Moodys last year. Fitch said its
downgrade was prompted by a
higher state debt level, which it
now expects to peak at 96 per cent
of GDP next year, and the
uncertain growth outlook for the
Eurozone currency bloc.
THURSDAY 18 JULY 2013
6
NEWS
cityam.com
HEATHROW yesterday insisted that
building a third runway at the airport
is the best way to add extra flights in
the south east of England.
Europes busiest airport by passenger
numbers set out three options for a
new runway, which would require the
demolition of up to 2,700 homes.
The airport, which is currently operat-
ing at 99 per cent capacity, also said the
plans would lead to between 10 and 20
per cent fewer people affected by noise,
though this would be partly achieved
by airlines using quieter planes.
Heathrow also conceded that a new
runway would mean the noise gets
worse for some nearby residents.
The options, costing between 14bn
and 18bn, would be cheaper than
building a new hub as set out this week
by the Mayor of London, Heathrow said
ahead of its formal submission to the
governments aviation commission.
Heathrow claims the runway would
deliver 100bn of economic benefits.
It also argues that expansion will cre-
Heathrow sets
out its stall for
a third runway
BY MARION DAKERS
ate 70,000 jobs, compared to the
biggest mass redundancy in UK
history if the airport were to close.
While Heathrow expects most of the
project to be privately funded, it has
flagged up between 4bn and 6bn of
spending on roads and noise reduction
that it thinks qualify for state money.
Any investment happens because
investors will make a fair return,
Heathrow CEO Colin Matthews told
reporters yesterday.
The airport set out possible sites for a
fourth runway but gave no forecasts for
costs or passenger numbers, arguing
that a third runway alone will provide
enough capacity until at least 2040.
The London Chamber of Commerce
backed a new runway at Heathrow as
the most realistic option.
But Wandsworth Council leader Ravi
Govindia derided Heathrows pledges
on noise as a complete sham.
Boris Johnson said yesterday: There
will be more pigs flying than aircraft if
we are to believe the claim that three
runways at Heathrow will make less
noise than two.
n Heathrows first option would see a
runway built to the north west of the
airport, over the Old Slade sewage works
and three villages, meaning 950 homes
will be demolished.
n This option would cost 17bn and be
delivered by 2026, based on a government
decision by 2015 and five years in the
planning process.
n Option two: build a runway to the south
west, over reservoirs and 850 homes.
n This is a more complex plan, costing
18bn and not due until 2029.
n Heathrow prefers these two options,
considering them gentler on local residents
when it comes to noise and property
losses. They would lift annual flights from
480k to 740k a year, and require part of
the M25 to be put in a tunnel.
n Option three is quicker and cheaper, but
more disruptive. This would see a runway
to the north of the airport, demolishing
2,700 homes. This choice would take until
2025 and cost 14bn.
n This runway would be slightly shorter,
meaning bigger planes like the A380
would be unable to take off, restricting
traffic to 700k flights a year.
n Any of these options would increase
Heathrows capacity from 80m passengers
a year to between 123m and 130m.
n By comparison, the Isle of Grain estuary
proposal would cost upwards of 50bn,
finish in 2029 and take 130m passengers.
THE AIRPORTS PROPOSALS AT A GLANCE
Heathrow, which currently has two runways, wants government backing for a third
BT KICKED off its debut season as a
sports broadcaster with an early coup
yesterday, netting joint rights to
televise the FA Cup until 2018.
The worlds most famous domestic
knock-out competition will be shown
on both BT Sport and the BBC,
starting from the 2014-15 season.
BT had already secured rights for
the coming seasons FA Cup through
its purchase of ESPNs UK business.
ITV will also broadcast the 2013-14
FA Cup, but its involvement will now
expire next summer.
The deal for 2014-15 until 2018, the
financial details of which were
undisclosed, is another boost for BT.
The company is launching its sport
channel next month having
acquired a share of Premier League
broadcasting rights alongside Sky.
They have millions of customers
and are shaping up to be a
heavyweight player in
the broadcasting
world so the FA Cup
is a fantastic asset
for their growing
portfolio of sports,
FA chairman Greg
Dyke said yesterday,
about BT.
BT Sport nets
rights to share
FA Cup to 2018
BY JULIAN HARRIS
Alex Oxlade-Chamberlain
is a BT Sport ambassador
THURSDAY 18 JULY 2013
7
NEWS
cityam.com
RINGFENCED banks will not be allowed
to lend to other banks in future, the
Treasury announced yesterday, as part
of a drive to stop institutions becoming
entangled.
The consultation on bank reforms
sets out which activities will be allowed
within the ringfenced bank the part
of the lender including basic retail serv-
ices, which regulators want to keep
afloat even if the rest of the bank fails.
Core banks will include retail
deposits and small firms deposits, but
bigger companies with over 6.5m
annual turnover or more than 50
staff and high net worth individuals
can choose where to keep their money.
Treasury clamps
down on bank
to bank lending
BY TIM WALLACE
These core banks will not allowed to
be exposed to any non-ringfenced
banks, ending the flow of funding
from retail depositors to other parts of
the financial system. They can also not
lend to insurers, investment firms and
securitisation businesses.
Ringfenced entities will also be limit-
ed in the type of derivatives they can
offer, with only swap, future and for-
ward contracts allowed, and only for
currency, interest and commodity
hedging purposes.
And the total risk arising from those
derivatives will not be allowed to
exceed 20 per cent of the banks total
credit risk capital requirement.
The consultation will remain open
until October.
HARD-LIVING Britons will be able
to keep buying cheap booze and
smoking branded cigarettes after
the government dropped plans to
rein in such indulgences.
Proposals to introduce a 45p
minimum price for each unit of
alcohol which would introduce a
4 base price for a bottle of wine
were pushed forward at the end of
Minimum price for alcohol and
plain cigarette packs dropped
The PM no longer faces the prospect of paying over 2 for a can of Tennents Super
BY JAMES WATERSON
last year. But David Cameron said he
would instead ban retailers from
selling alcohol for less than the
combined cost of the VAT and duty.
Separately, the government also
said it had decided not to introduce
plain packaging for cigarette
packets in an attempt to dissuade
children becoming smokers. Both
announcements reflect Downing
Streets decision to drop policies
that could up the cost of living.
ACTIVIST shareholder Nelson Peltz
said yesterday he wants PepsiCo to
buy Mondelez International for
around $35 a share in a deal that
would be worth $62.46bn and create
a snack food powerhouse selling
everything from chocolate to chips.
Peltz said in a 59-page
presentation that PepsiCo was at a
strategic crossroads and the status
quo was unsustainable. Peltz has
played a role in some of the food
industrys biggest deals.
Speaking at a conference that was
broadcast on CNBC, Peltz said
PepsiCo doesnt love the deal. He
also said he plans to meet with
Mondelez chief executive Irene
Rosenfeld in the coming weeks.
PepsiCo has said it sees no need
for large-scale mergers. It has
already said that it was weighing
structural options for its North
American beverage business but
does not plan to discuss it until
early next year.
Pepsi urged to
become snack
food behemoth
BY CITY A.M. REPORTER
NEW LAWS designed to clamp
down on the lobbying industry
will impose tough restrictions on
the political activities of Labour-
supporting trade unions,
according to a draft published
yesterday.
The coalition bill promises a
lobbying register of contact
between lobbyists and politicians
and was drawn up after
newspapers last month exposed
politicians who were willing to
accept money for influence.
But the bill also contains many
measures that appear to be
especially designed to frustrate
unions, such a reduction in the
amount third party campaigning
organisations can spend during
elections to 390,000.
Labour could be hit hard by the
move as it receives substantial
support from third party union
campaigns, which will also now
be included in party spending
limits. The union Unison alone
spent more than 670,000 in this
manner during the 2010 general
election.
Unions will also be legally
required to keep accurate records
of their membership and avoid
inflating their support.
Professional lobbying firms
also highlighted loopholes in the
proposed legislation, such as the
fact they will only have to publish
a list of their clients if they meet
with ministers or top-level
Whitehall mandarins.
Lobbyists who do not work for
an external consultancy will be
excluded from the rules, while
financial PRs will be largely
exempt from the rules.
Lobbying crackdown will
hit trade unions hardest
BY JAMES WATERSON
SAME-SEX couples will be allowed to
marry in England and Wales, after
government legislation became law
yesterday afternoon.
The bill received Royal Assent from
the Queen following months of
vicious debate and survived last-ditch
attempts by backbench MPs and peers
to derail its progress. David Cameron
said we can be proud of as a
country after it was passed.
The first ceremonies are expected
to take place next summer as civil
servants need to ensure procedures
are compatible with the new rules.
The news comes just 45 years after
the Queen signed the Sexual Offences
Act 1967, which decriminalised
homosexual acts between men over
the age of 21.
Gay marriage
becomes law
BY JAMES WATERSON
THE DEPARTMENT of Energy and
Climate Change yesterday
published its draft electricity
market reform (EMR) delivery
plan, which is looking to raise
110bn to invest in new
electricity infrastructure by 2020.
The draft document which is
under consultation until 25
September gives further details
on the Contracts for Difference
support mechanism and strike
prices for renewables, both of
which aim to encourage
investment in low carbon energy
by diminishing price volatility.
Secretary of State Ed Davey said
that the plan would provide
investors with further certainty
of governments intent and
BY SUZIE NEUWIRTH support up to 250,000 jobs across
the energy sector.
The new strike prices will
mean that renewables can
contribute more than 30 per cent
of our power mix by 2020,
putting us on track to seeing
significant decarbonisation of the
power sector by 2030 and meeting
our wider climate targets, he
added.
The industry has been calling
for certainty over the finer details
of EMR and so any additional
clarity is to be welcomed, a
spokesperson from big six energy
firm SSE told City A.M.
We will take time to digest the
plans published today, but there
is still a long way to go before we
can tell whether the new
mechanisms will be investable.
Government releases draft
electricity market reforms
Ed Milibands party relies on union funding
THURSDAY 18 JULY 2013
8
NEWS
cityam.com
Watchdogs tighten up on Libor
INTERNATIONAL regulators have
ordered watchdogs around the world
to clean up financial benchmarks in
a co-ordinated effort to stop any
repeat of last years Libor scandal.
The International Organisation of
Securities Commissions (IOSCO)
wants increased monitoring of data
submission and compilation as well
as improved complaints systems.
The regulators also want indices to
be updated regularly when the
structure of markets changes, for
BY TIM WALLACE
instance when the rates measured
are no longer the main rates in use.
IOSCOs recommendations are
not legally binding, but do
have influence as the group is
comprised of leading figures
in the regulatory landscape.
US regulators had called
for an end to any index not
based on market transactions
some Libor rates were
essentially made of
guesswork after
liquidity dried up
in the crisis.
But IOSCO held back, as it may
mean scrapping useful benchmarks.
These principles set out clear and
robust standards that will improve
their construction and oversight of
benchmarks, and form an
important step in restoring their
credibility, said Martin Wheatley,
head of the UKs Financial Conduct
Authority (FCA). We look forward to
working with international
partners to drive up
standards.
INTEL last night slashed its year-end
financial forecast as the personal
computer business loses market
share to tablets and smartphones.
The worlds top chipmaker said
second quarter profits were down
29 per cent year-on-year to $2bn
(1.3bn), below Wall Street
expectations.
It also reduced its year-end target
for personal computer chip sales,
Intel suffers as consumers flee
the desktop computer market
BY JAMES WATERSON
although the decline in the sale of
such components was not as steep as
some recent market surveys had
projected.
The company also posted second-
quarter revenue of $12.8bn (8.4bn)
and said revenue in the current
quarter would be $13.5bn, give or
take $500m.
Recently appointed CEO Brian
Krzanich said the firm will leave no
computing opportunity untapped
as it looks to improve its position.
E-COMMERCE giant eBay reported
solid second-quarter results yesterday
but chief executive John Donahoe
warned of economic headwinds in
the second half of the year from
Europe and Korea.
Those comments, and weaker-than-
expected third-quarter forecasts, sent
shares down six per cent in after-hours
trading.
Its not a quarter in which they
absolutely crushed it, said Ron Josey,
an analyst at JMP Securities. They are
doing well, but people were hoping for
more.
Second-quarter net income was
$822m (540m), or 63 cents a share,
versus $730m, or 56 cents a share, in
the same period a year earlier.
Revenue rose 14 per cent to $3.88bn.
EBay was expected to earn 63 cents a
share on revenue of $3.89bn,
according to Thomson Reuters.
Macroeconomic headwinds in
Europe and Korea will continue to be a
challenge in the second half of the
year, Donahoe said. But our core
eBay markets a
solid report but
sees headwinds
BY HARRY BANKS
businesses are strong.
EBay lagged rival Amazon.com for
several years, but chief executive John
Donahoe has led a turnaround that
focuses on mobile shoppers, interna-
tional expansion and tie-ups with
local physical stores. eBay is spending
heavily on these initiatives, and hopes
they will fuel revenue and profit
growth in coming years.
EBays third-quarter forecasts were
weaker than expected, while the com-
pany stuck to its full-year guidance.
EBay shares fell six per cent to $53.94
in after-hours trading yesterday. They
had closed up nearly one per cent.
IBM, the world's largest technology
services company, raised its full-
year outlook as it cut costs and
reported second-quarter earnings
that beat estimates.
International Business Machines
said excluding a $1bn (657m)
restructuring charge related to job
cuts, non-GAAP (generally accepted
accounting principles) earnings per
share forecasts were being raised
to at least $16.90 from $16.70. Full-
year GAAP diluted earnings per
share are at least $15.08, IBM said.
The New York-based company
IBM raises its full-year outlook
on cost-cutting and strong data
IBM chair and chief executive Virginia Rometty raised the firms full-year outlook
BY CITY A.M. REPORTER
said its quarterly non-GAAP
income rose three per cent,
excluding a $1bn restructuring
charge, to $4.3bn, or $3.91 a share,
compared with $3.51 a year ago
and analyst estimates of $3.77 a
share.
On a GAAP basis, earnings per
share were $2.91, down 13 per cent;
net income was $3.2bn, down
17 per cent.
Revenue dropped three per cent
to $24.9bn, below average analyst
expectations of $25.4bn.
Shares closed 0.36 per cent up at
$194.55 but were up nearly three
per cent in after-hours trade.
CREDIT card company American
Express reported a five per cent
increase in quarterly profit as it
charged higher fees and earned more
commissions on its cards.
American Express, which gets the
bulk of its US billed business from
affluent corporate customers, said
cardmember spending increased
eight per cent in the quarter,
adjusted for foreign currency
translations.
Earlier in the day shares fell more
than five per cent following the
European Commissions plans to
limit fees banks can charge to
process card payments.
The companys net profit rose to
$1.41bn (962.5m), or $1.27 per
share, for the quarter ended 30 June,
from $1.34bn, or $1.15 per share, a
year earlier.
Total revenue, net of interest
expense, rose four per cent to
$8.24bn, boosted by a five per cent
increase in net card fees. Analysts on
average had expected the company
to earn $1.22 per share on revenue of
$8.28bn, said Thomson Reuters.
American Express, a Dow 30
constituent, said consolidated
expenses rose slightly to $5.66bn
from $5.62bn.
Shares closed at $76.80 on the New
York Stock Exchange but fell one per
cent after the bell.
Amex sees its
earnings rise
on higher fees
BY CITY A.M. REPORTER
Handelsbanken profits rise as it
plans 12 more branches in the UK
BRITISH operations of Nordic lender
Handelsbanken expanded rapidly
again in the first half of the year,
the group reported yesterday.
Operating profits in the UK
increased five per cent on the year
to 276m Swedish krona (27.6m).
Household lending jumped
28 per cent to 3.1bn krona, while
corporate lending rose 19 per cent
on the previous year to 8.3bn krona.
Deposits increased by 14 per cent to
3bn krona.
The bank opened nine new UK
branches in the second quarter,
taking its total footprint in the
country to 147 outlets.
And it has recruited managers to
BY TIM WALLACE
open another 12 in the near future.
Headcount in the UK shot up to
1,201, up 31 per cent on the 917
employed a year ago.
Meanwhile the group overall
recorded profits of 7.2bn krona, an
increase of nine per cent on the
year.
That takes return on equity to 14.2
per cent, down a touch on the 14.3
per cent a year earlier, while its core
tier on capital ratio under Basel III
rules came in at 17.8 per cent.
Handelsbanken added it will be
affected by the Swedish authorities
decision to introduce a tougher new
capital requirement equivalent to a
15 per cent risk weight floor for
Swedish mortgage loan portfolios.
In the banks assessment, this
entails a capital requirement in
Pillar 2 of approximately 7bn
krona, the bank said in a statement.
The groups capital markets
operations also recorded steady
growth.
The unit, which includes
investment banking and asset
management operations, as well as
trading in financial instruments
and structured products, saw profits
rise four per cent to 3.1 krona.
Commission income increased 10
per cent to 2.4bn krona, with
mutual funds and custody profits
up 16 per cent to 1.2bn krona.
However insurance profits fell,
dipping eight per cent on the year.
The banks shares dipped 1.97 per
cent on the day.
Martin Wheatley has led the
charge on benchmark reform
eBay Inc
17Jul 11 Jul 12Jul 15Jul 16Jul
57.0
57.5
56.5
56.0
55.5
$
57.38
17Jul
MATTELS quarterly results offered
further proof of the fading appeal of
the iconic Barbie doll, as newer
brands including the teen monsters
of the companys own Monster High
line gained market share.
Mattel shares fell 6.8 per cent after
the worlds biggest toymaker
reported a much weaker-than-
expected second-quarter profit.
Shares of smaller rival Hasbro fell
three per cent.
Sales of Barbie fell 12 per cent in
the second quarter, their fourth
straight quarterly decline. Sales of its
Other Girls line, which includes
Monster High, rose 23 per cent.
The companys second-quarter net
income fell to $73.3m, or 21 cents
per share, from $96.2m, or 28 cents
per share, a year earlier.
Barbie falling
flat for Mattel
BY CITY A.M. REPORTER
BRIT Insurance, the sponsor of the
England and Wales cricket team,
has sold its stake in an online
business insurer in a management
buyout, it emerged yesterday.
The Lloyds of London insurer
sold a 37 per cent holding in
Simply Business in a deal that
values the online broker at more
than 50m, according to the Daily
Telegraph.
Brit has undergone a radical
restructuring in recent years
under chief executive Mark
Cloutier, who was brought in at
the end of 2011 and has focused all
of the companys efforts on its
Lloyds business.
In the process he has sold or
closed most of Brits consumer-
facing UK businesses.
Brit Insurance
sells subsidiary
BY JAMES WATERSON
THURSDAY 18 JULY 2013
9
NEWS
cityam.com
Severn Trent boss Tony Wray
Severn Trent books 19m charge on failed bid
FTSE 100-listed water company
Severn Trent said yesterday that it
has incurred 19m in advisory and
legal costs after rejecting last
months takeover bid, in a first
quarter trading update that was in
line with expectations.
The British utility firm rebuffed a
5.2bn offer from investor
consortium LongRiver Partners,
claiming it was not fair value.
In yesterdays update, Severn
BY SUZIE NEUWIRTH
Trent said that its water division will
benefit from a two per cent increase
in tariffs, despite a year-on-year
decline in consumption.
Growth in the services unit is
expected to be weighted towards the
second half due to the timing of
water purification delivery orders.
Bad debt is forecast to remain at
around 2.2 per cent of turnover for
the full year, although the firm will
continue to monitor developments
such as unemployment levels and
changes to the UK benefits system
closely.
However, regulatory issues loom
for the company, according to
analysts. We expect market
attention to increasingly focus on
the [2014] regulatory price review as
opposed to current company
trading, commented Tina Cook,
analyst at Charles Stanley.
All resolutions were passed at the
companys annual meeting
yesterday.
Severn Trent shares closed 0.3 per
cent higher at 1,752p.
Severn Trent PLC
17Jul 11 Jul 12Jul 15Jul 16Jul
1,740
17,60
1,720
P
1,752.00
17 Jul
Expensive but
far from 19m
down the drain
S
HAREHOLDERS in Severn Trent
may be mourning the sky-high
prices of May and early June,
but it is too soon to claim the
City didnt earn its fees in helping
the water firm resist the advances of
the LongRiver consortium.
It was revealed yesterday that in
batting away the takeover bid Severn
Trent paid 19m in advisory fees.
The firms involved included Citi and
Rothschild. That amounts to 8.83
per cent of the utilitys group profit
before tax for 2012-13, no small sum.
The immediate upward journey of
the shares on news of the bid in May
was unmistakable: they jumped
more than 16 per cent overnight,
closing at 1,825p on 13 May and
opening at 2,125p on 14 May. That
fell away in June, when the bid was
finally rejected. Shares closed at
2,070p on 7 June, before falling
steadily for the next fortnight,
bottoming out on 21 June with a
close at 1,614p, a fall of 22 per cent.
Since then, the share price has
recovered somewhat, but remains
below pre-bid levels.
That explains the long faces from
short-term investors who failed to
get out while the going was good.
Yet the bid was rejected for not
representing fair value. As such, for
anyone investing in the company
over a longer time horizon this still
has time to prove 19m well-spent.
Given how often the City is tarred
with the short-termist brush, it
seems a little unfair to beat its
advisers up when they play the long
game as well.
BOTTOM
LINE
MARC SIDWELL
RBC CAPITAL Markets, the
corporate and investment banking
arm of Royal Bank of Canada, has
appointed Darrell Uden as head of
European equity capital markets
(ECM) and corporate broking.
Uden, who was most recently co-
RBC Capital Markets picks Uden
as new head of ECM and broking
BY CITY A.M. REPORTER
head of ECM for Europe, Middle
East and Africa at UBS, will report
to Josh Critchley and Patrick Meier,
co-heads of European investment
banking.
Darrell will play a pivotal role in
driving forward our strategy to
grow our ECM coverage in the
region," Critchley said.
MAGIC circle law firm Allen &
Overy has come out on top in a
global round-up of legal advisers to
the debt and equity capital
markets, winning roles on more
than 450 deals in the first half of
2013.
According to the latest Thomson
Reuters survey, combined debt and
equity capital markets activity
Allen & Overy tops capital markets adviser table
BY ELIZABETH FOURNIER totalled $3.4 trillion in the six
months to June, up 5.9 per cent on
the total for the whole of 2012.
Allen & Overy acted as adviser to
the manager on 350 deals and to
the issuer on 106 deals narrowly
beating fellow UK firms Linklaters
and Clifford Chance in each
respective category.
Global equity activity in the first
six months was $388.5bn 36.5 per
cent higher than last year.
ALMOST 30 per cent of FirstGroup
shareholders voting in yesterdays
annual meeting refused to back the
transport groups pay plans for its top
staff.
And 22.7 per cent of shareholders
voted against the reappointment of
Martin Gilbert, who is stepping
down as chairman once a
replacement is found.
Gilbert announced his departure
in May alongside news of the firms
615m discounted rights issue to cut
its debts and defend its credit rating.
Chief executive Tim OToole
turned down a bonus of 70 per cent
of his 1.02m basic pay for the year
in the wake of the fundraising.
The firm said in an update
yesterday that its recovery plan was
on track, though OToole added
there remains significant work to
do.
The task of returning the group
to the position of strength that our
customers, employees, and
shareholders expect will require
hard work and persistent delivery for
some time to come, and we are
pleased by the support of our
shareholders in the recent rights
issue, he said in a statement.
The firm axed its dividend and
launched the recovery plan after the
abrupt cancellation of its contract to
run the West Coast Main Line rail
route last October.
Investors holding just 64.16 per
cent of the firms shares used their
votes yesterday.
FirstGroups shares
closed at 92.85p, or
around half the
level seen before
the rights issue
announcement.
Protest vote at
FirstGroup over
executive pay
BY MARION DAKERS
Martin Gilbert
is FirstGroups
outgoing
chairman
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THURSDAY 18 JULY 2013
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News, info and offers at www.cityofIondon.gov.uk/eshot
Talks and treasures at
Guildhall Library's Open Day
An evening of words, music and
champagne, Divine Music for Trumpets
and Voices, will be hosted by Roger
Gifford, Lord Mayor of the City of London,
at The Mansion House on 5 September to
celebrate the life of George Frideric
Handel and raise money for The Lord
Mayor's Appeal.
Simon Russell Beale (pictured), widely regarded as the finest stage
actor of his generation, will play the role of Handel, accompanied by
an orchestra of period instruments and Baroque trumpeters
performing some of the composer's most exceptional music.
Champagne reception at 7.30pm; performance at 8pm. Dress code:
Black Tie. For more information and to book tickets, visit
www.theIordmayorsappeaI.org or call 020 7246 4021.
Guildhall Library opens its doors on Saturday 20
July, 10am to 5pm, for a truly amazing Open Day.
Visitors will get the chance to view some rare
'treasures', take a behind-the-scenes tour of the
Library, and find out more about London's history,
as well as listen to talks about the Library's valuable collections
and enter a raffle to win fantastic prizes. Staff will also lead
workshops about electronic resources, family history, and how to
care for old books.
All the events are FREE (except for guided walks and Great Hall
tours) and visitors can book the workshops, one-to-one family
history sessions, tours and walks when they visit Guildhall Library
in person on the day from 10am. Where events have limited
space, places will be allocated on a 'first come, first served' basis.
www.cityofIondon.gov.uk/guiIdhaIIIibrary
Divine music and performance at
Mansion House
Walkie-Talkie awaits more calls
LUXURY car retailer HR Owen yester-
day received a takeover offer from its
biggest shareholder.
Philippines-based conglomerate
Berjaya, which distributes Mazdas
cars in the Philippines, bought a 29.8
per cent stake in the firm for 8.3m
last month.
It said yesterday it was willing to
pay 130p per share to buy the rest of
the company, valuing HR Owen at
32.5m.
Berjaya Philippines, majority
owned by Hong Kong-based Berjaya
Lottery Management Limited, said it
had not sought a formal recommen-
dation from HR Owens board.
Philippines firm
makes takeover
bid for HR Owen
BY MARION DAKERS
A spokesperson for the car
company declined to comment last
night.
HR Owens shares closed 7.85 per
cent higher at 130.5p. The firm this
week reported strong sales for the
last six months, with particularly
good demand for Rolls-Royce and
Bentley models.
The firm was previously subject to
takeover interest in 2007, but has pri-
marily been the acquirer rather than
the bid target in the recent consoli-
dation drive across the car sales
industry.
HR Owen bought Broughtons in
2011 for 1.5m and last year opened
a new Ferrari showroom in Mayfairs
Berkeley Hotel.
DERWENT London yesterday
announced plans to launch
150m of unsecured convertible
bonds, as it looks to lower debt
costs and fund developments.
The West End property firm
said the move would help to
extend maturities and provide
an appropriate mix of secured
and unsecured debt, taking
advantage of current favourable
market conditions.
It also plans to use the
proceeds to refinance 93m of
acquisitions made in the last 12
months and fund its vast
development pipeline.
Derwent, led by property
veteran John Burns, has a capital
expenditure programme of
around 400m and is currently
on site at projects spanning over
Derwent London plans to tap
the bond market for 150m
BY KASMIRA JEFFORD 400,000 square feet.
These include Turnmill in
Farringdon and 40 Chancery
Lane, both of which it pre-let
last month to Saatchi and
Saatchi owner Publicis.
It also recently decided to kick
start its White Collar Factory
scheme near Old Street next year
on a speculative basis.
The bonds, due in 2019, will be
issued at face value and are
expected to carry a coupon of
between 1.25 per cent and 1.75
per cent per year.
The initial conversion price
the price at which the bond can
be converted into stock is
expected to be set at a premium
of between 30 per cent and 35
per cent above the volume
weighted average price of the
shares from launch to pricing on
17 July, Derwent said.
THE COMPANY behind Bargain
Booze announced plans yesterday
to launch on Londons Alternative
Investment Market (Aim) as the
north west-based off-licence chain
looks to target thirsty shoppers in
the south of England.
Conviviality Retail, which also
trades as Bargain Booze Plus, Select
Convenience and Thorougoods,
said it hopes to raise 60m to 65m
through a placing on the junior
market at end of July.
Its private-equity backer ECI,
which acquired the business
through a 63.5m management
buyout in 2006, stands to make
about three times its investment
through the flotation, which will
also leave the company debt-free.
The chains chief executive
Bargain Booze owner to raise
65m in London Aim listing
BY KASMIRA JEFFORD
Diana Hunter, who joined from
Waitrose in 2011, plans to push
into the south east and tap into
the growing demand among cash-
conscious shoppers for bargains.
I see a great opportunity to
grow this business through
uniting and aligning the
franchisees with the company, a
most powerful force in generating
optimal performance, she said.
The group runs 611 franchised
convenience stores selling
everything from alcohol to
groceries and tobacco. It believes
that its two warehouses could
service around 2,000 stores.
Sales in the year to 30 April fell
to 372m from 395m the previous
year while adjusted earnings
before interest, tax, depreciation
and amortisation fell four per cent
to 12.5m.
Derwent owns the Buckley Building in EC1
Zeus Capital is acting as nominated
adviser to Conviviality Retail on its listing
and will serve as joint-broker going
forward. John Goold, who was appointed
joint chief executive of the boutique
investment bank three months ago, is
advising the Bargain Booze owner is
acting as lead adviser on the IPO.
Originally from an accounting and
corporate finance background, Goold co-
founded the stockbroking firm Arden
Partners in 2002 and left his position
there as head of equities in March last
year. Commenting on the placing Goold
said fundraising was well received and
the book was twice over subscribed, with
30 institutions participating.
ADVISERS
JOHN GOOLD
ZEUS CAPITAL
PROPERTY giant Land Securities
said yesterday that it expects the
Walkie-Talkie skyscraper to be
two thirds let by its completion
next year, in a sign of growing
confidence in the market.
The City office market has seen
a pick-up in leasing activity in the
past year as companies who had
previously shelved plans rushed
to book ahead of an expected
squeeze in supply.
Land Securities and Canary
Wharfs 160-metre tall tower is
already 52 per cent let, with
insurers Liberty Mutual, Markel,
Kiln, RSA and Ascott
Underwriting all confirmed as
tenants.
Chief executive Rob Noel said
yesterday that it has seen
increased interest across all of its
developments, as supply of new,
quality office space dries up.
In London, demand is
increasing. We remain confident
that our portfolio is well
positioned and our developments
well timed, he said.
BY KASMIRA JEFFORD Land Securities has kickstarted
more than 1bn of London
schemes this year, including the
first phase of Nova, a 5.5 acre
island site next to Victoria
station it is developing with
Canada Pension Plan Investment
Board.
The Lee Polisano-designed
scheme will comprise of five new
buildings that together will
provide 170 new apartments,
shops and restaurants and a new
public square.
In a first quarter trading
update, Land Securities said total
retail sales were up 2.5 per cent
on the same quarter last year.
Units in administration were
down at 2.2 per cent at 30 June
2013 compared to 2.3 per cent
last year despite the collapse of
shops including Dwell and
Modelzone.
The group said that five of its
six HMV stores had been re-let
since the end of the first quarter.
It also announced the sale
yesterday of Oxford House in the
West End to Great Portland
Estate for 90m.
THURSDAY 18 JULY 2013
12
NEWS
cityam.com
BP asks US judge for temporary
halt to Gulf of Mexico payments
FTSE 100-listed oil giant BP has asked
a US judge to temporarily halt
payments to people and businesses
who say they lost money after the
Gulf of Mexico oil disaster.
BP said in a New Orleans court
filing that a brief pause is
necessary until an investigation into
alleged misconduct over the
settlement claims is complete.
There is a material risk that
BY HARRY BANKS payments going out the door have
been and continue to be tainted by
possibly fraudulent or corrupt
activity, said BP spokesman Geoff
Morrell. No company would agree
to bear the risk of improper
payments in these circumstances.
Former FBI director Louis Freeh
was appointed on 2 July to conduct
an independent investigation into
allegations of improprieties within
the settlement programme. BPs
shares closed 0.28 per cent up.
FTSE 100-listed BHP Billiton yesterday
said that production at two of its
mines had beaten guidance this year
and expansion of its iron ore division
is running ahead of schedule.
Yet despite petroleum output
increasing by six per cent to 235.8m
barrels of oil, it fell short of BHPs
240m guidance.
Total iron ore production increased
by seven per cent to 170m tonnes in
the 2013 financial year, while copper
increased by 10 per cent to 1.2m
tonnes, the miner said.
Production from BHP Billitons iron
ore expansion project the Jimblebar
Mine Expansion has now been
brought forward to the December
2013 quarter.
All up, more positive than negative
and on first pass we see little downside
risk to our full year forecasts, said bro-
ker Investec in a note. [The company]
has not provided any market commen-
BHP Billitons
iron ore output
beats forecasts
BY SUZIE NEUWIRTH
tary while the limited production
guidance for full-year 2014 appears to
fall in line with our expectations.
Shares closed two per cent higher.
Rio Tinto yesterday announced
record iron production in the first
half, the mining giants defying a drop-
off in demand from China and a dwin-
dling iron ore price. Analysts have
suggested that the firms are mining
more for less in order to maximise
economies of scale and squeeze out
smaller competitors.
IN BRIEF
Strauss-Kahn joins Russian bank
n Dominique Strauss-Kahn, the former head of
the International Monetary Fund, has joined the
supervisory board of a bank owned by Russian
state oil major Rosneft. He will take a seat on
the supervisory board of Russian Regional
Development Bank, according to a regulatory
filing by the bank.
Sunshine boosts restaurant sales
n Restaurants and pubs saw an increase in
sales in June this year thanks to the warm
weather, which encouraged people to spend
their money. Total sales, including the impact of
new openings, rose by 4.8 per cent, while like-
for-like sales were up by 1.9 per cent, according
to the Coffer Peach business tracker. The
London market showed the highest increase,
with like-for-like sales up 5.1 per cent in June,
while the rest of the country was relatively flat.
Davenport Lyons to move offices
n Davenport Lyons has decided to move to
new offices in the West End despite an exodus
of law firms moving out of the district in search
of cheaper rents and bigger office space. The
company has taken 31,500 square feet of space
over three floors at 6 Agar Street in Covent
Garden and will move in September after 23
years in Old Burlington Street, Mayfair. The
65m Agar Street office block is owned by Legal
& General and was finished last year.
LATIN American miner Hochschild
topped the FTSE 250 index
yesterday, after reducing the board
and slashing directors' salaries.
Shares in the company, which
produces silver and gold from
mines in Peru and Argentina,
jumped as much as 10 per cent in
morning trade as investors reacted
well to the cost cuts in the face of
plunging gold and silver prices.
The group said that two non-
executive directors out of a
10-strong board former JP
Morgan executive Fred Vinton and
one-time deputy governor of the
Hochschild tops FTSE 250 as pay
and board cuts please investors
Former Bank of England official Rupert Pennant-Rea will not be replaced on the board
BY CITY A.M. REPORTER
Bank of England Rupert Pennant-
Rea would be standing down at
the end of the month and would
not be replaced.
It said the salary of its chairman,
Eduardo Hochschild, and non-
executive directors would be cut by
30 per cent, while chief executive
Ignacio Bustamante would take a
10 per cent cut.
The measures were announced
alongside a dip in quarterly
production, though it said output
was in line with expectations and it
remained on track to hit its 2013
target.
Hochschilds shares closed 7.4
per cent higher at 146.20p.
FTSE 100-listed miner Fresnillo
yesterday reported a 6.3 per cent
increase in quarterly silver
production but lowered its full-year
guidance for gold output.
The year-on-year increase in silver
output was a result of increased
volumes at two of the firms mines
and silver will meet guidance this
year, the company said.
However, gold output fell 6.8 per
cent year-on-year and production
guidance was lowered from 465,000
ounces from 490,000 ounces, due to
the halt in mining the Dipolos open
pit after a district court ruled in
favour of a community group
claiming rights to the mining area.
Fresnillo bounced back from a
weak start to 2013, delivering
improved silver grades, and
continuing to ramp-up [its silver
mine] Saucito, said broker Deutsche
Bank in a note. The shine was taken
off the results, in our view, by the
seemingly permanent closure of the
Dipolos open pit gold mine.
Our growth pipeline remains
robust and on track with
development projects and
encouraging exploration results,
said chief executive Octavio Alvidrez.
Fresnillos gold
loses its lustre
as silver shines
BY SUZIE NEUWIRTH
BP PLC
17Jul 11 Jul 12Jul 15Jul 16Jul
468
472
464
P
466.50
17Jul
Bhp Billiton PLC
17Jul 11 Jul 12Jul 15Jul 16Jul
1,800
1,850
1,900
1,750
P
1,868.00
17Jul
THURSDAY 18 JULY 2013
13
cityam.com
cityam.com/the-capitalist
THECAPITALIST
EDITED BY CALLY SQUIRES
Got A Story? Email
thecapitalist@cityam.com
NOTHING like a bit of hypocrisy from
Whitehall, just as Parliament wraps
up for the summer.
Scribes over in the Cabinet Office
launched a new magazine on
Tuesday the glossy Civil Service
Quarterly. But the timing of the
launch, which employs a team of six
on editorial and design, could
not be worse.
Secretary of State for
Communities and Local
Government Eric
Pickles led a high pro-
file campaign against
councils running what
he has nicknamed town
hall pravdas earlier this
year: These glossy
magazines have been
Pickles goes
quiet on launch
of Cabinet rag
designed for the sole purpose of
telling people how great the council
is.
Sadly the mag seems to be full of just
the kind of PR propaganda that Pickles
has been campaigning against. The
opening gambit promises to
showcase excellence and half of the
Twitter hashtags (#CSQuarterly) refer-
encing the new title are from the
Cabinet Office itself.
So what did Pickles think about the
launch? We wont be commenting
on this a representative told The
Capitalist yesterday. So much for
openness and transparency then.
THE CITYS historic Guildhall
played host to one of the capitals
more eccentric traditions
yesterday.
Every year since 1655 a livery
company the Worshipful
Company of Carmen have
gathered in the old Yard wielding
red hot branding irons. Not for any
Railway carriages join the City
relics facing the branding iron
Alderman Fiona Woolf and London Transport commissioner Sir Peter Hendy
sinister reasons, but to put their
stamp on various horse-drawn
carriages and steam-driven
vehicles. A more modern mode of
transport old Metropolitan
railway carriage number 353 this
year also met its marker. But with
space in mind, it took pride of
place at Mansion House station.
Former England cricket captain Mike
Gatting has been getting around the City
charity sporting circuit lately. Not only did he
complete annual Standard Chartered Great City
race last week and blindfolded too he then
hopped straight on his bike for five days of
cycling from Chester-le-Street to Lords cricket
ground as part of the Investec Ashes Challenge.
Gatting made it back to Lords yesterday, after
pedalling the 340 miles around all the Ashes Test
match venues, to raise money for youth cricket
charity The Lords Taverners. There were hills
that Id probably struggle to drive a car up,
Gatting said at the finish line. Still, it is not all
work and no play: the cricketer told The Capitalist
he will be relaxing at his old Lords stomping
ground today watching the start of the second
Ashes Test hopefully with his feet up.
L
A
U
R
A

L
E
A
N
/
C
I
T
Y

A
.
M
.
Conservative MP
Eric Pickles
L-R: Investecs James Bedingfield, cricket
legend Mike Gatting and Leon Taylor
1. Transport for London hereby gives notice that, after consulting the
Commissioner of Police for the City of London, the Commissioner of
Police of the Metropolis, the Councils of the London Boroughs of
Hackney, Hammersmith and Fulham, Wandsworth, Hounslow,
Richmond upon Thames, Merton, Tower Hamlets, Lambeth, Southwark,
Camden, Redbridge, Waltham Forest and Newham, the Royal Boroughs
of Kensington and Chelsea, Kingston upon Thames and Greenwich, the
City of Westminster and the Common Council of the City of London, it
has made the above named Traffic Order under section 16(A) of the
Road Traffic Regulation Act 1984 for the purpose specified in paragraph
2. The effect of the Order is summarised in paragraph 3.
2. The purpose of the Order is to enable the event known as The
Prudential Ride London to take place.
3. The effect of the Order is to prohibit:
(1) persons or vehicles entering, exiting and proceeding in the
carriageway of any street or length of street specified in Schedule 1
and 2 to this Notice between the time specified in relation to each
street or length of street (or earlier if required by a police constable in
uniform) and a time when normal traffic operation can be resumed;
(2) stopping or waiting by vehicles (including waiting for the purpose of
delivering or collecting goods or loading or unloading a vehicle) in
each street and length of street specified in Schedule 1 and Schedule
2 to this Notice.
4. The provisions made in any Order in respect of one-way working which
applies to any of the roads listed in Schedule 3 to this Notice, are hereby
suspended or reversed as listed during the times specified.
5. During the times specified, the provisions made in any Order in respect
of bus lanes are suspended and stopping and waiting will only be
permitted by vehicles used in connection with this event on the lengths
of streets listed in Schedule 4 to this Notice.
6. The provisions made in any Order in respect of a prohibition of cycling
applying to any roads listed in Schedule 1 to this Notice, are hereby
suspended for the duration of this Order.
7. Between 0001 and 2359 hours on Saturday 3rd August 2013, this Order
will allow the right turn from Moorgate southbound into London Wall
westbound.
8. Between 0001 and 2359 hours on Sunday 4th August 2013, the Order
will also suspend:
(1) all stopping and waiting on West Ham Lane (between its junctions
with Victoria Street and Manor Road), Manor Road southbound
carriageway (between its junctions with Memorial Avenue and
Stephenson Street) and Silvertown Way (between its junctions with
Hallsville Road and Brunel Street) in the London Borough of
Newham;
(2) the parking and loading bays on Farringdon Street northbound
(between its junctions with Charterhouse Street and Holborn
Viaduct) in the City of London except TfL authorised National
Express, Megabus and local buses only;
(3) the no right turn prohibition from Tower Bridge Road northbound
into Tooley Street eastbound in the London Borough of Southwark;
(4) all stopping and waiting on Park Lane northbound (between the
Crossrail lorry holding area and Grosvenor Gate) in the City of
Westminster except TfL authorised National Express, Megabus and
local buses only;
(5) the bus lanes on York Road in the London Borough of Lambeth and
on Waterloo Bridge in the London Borough of Lambeth and the City
of Westminster;
(6) all stopping and waiting on Charles II Street south side in the City of
Westminster between its junctions with Haymarket and Regent
Street;
(7) all stopping and waiting on Waterloo Bridge and Lancaster Place
northbound in the London Borough of Lambeth and the City of
Westminster;
(8) all stopping and waiting on Concert Hall Approach in the London
Borough of Lambeth except buses;
(9) bus stop B on Townmead Road in the London Borough of
Hammersmith and Fulham to allow no stopping except buses;
(10) the no entry restriction on Chiswick Mall at its junction with
Chiswick Lane south;
(11) the bus lanes on Brook Street in the Royal Borough of Kingston upon
Thames;
(12) the no entry restriction from Wheatfield Way into Lady Booth Road
in the Royal Borough of Kingston upon Thames;
(13) the no u-turn prohibition on Wheatfield Way northbound
carriageway at the end of the central reservation prior to Fairfield
North in the Royal Borough of Kingston upon Thames;
(14) the left turn only prescribed route on Acre Road at its junction with
Richmond Road in the Royal Borough of Kingston upon Thames;
(15) all stopping and waiting on Ashdown Road (with the exception of the
Disabled Bay on the north side) in the Royal Borough of Kingston
upon Thames except Taxis on the south side;
(16) all stopping and waiting on The Bittoms (between its junctions with
East Lane and Kingston Hall Road), Fairfield West northbound
(between its junctions with Fairfield South and Fairfield Road),
Fairfield South and Hawks Road in the Royal Borough of Kingston
upon Thames;
(17) the no entry restrictions at the junction of Delamere Road and
Ethelbert Road and from Pentney Road into Albert Grove in the
London Borough of Merton;
(18) the no right turn prohibition from Courthope Road into Church Road
in the London Borough of Merton.
9. The following will also be permitted between 0001 and 2359 hours on
Sunday 4th August in the London Borough of Wandsworth:
(1) access through the fire gate on Felsham Road outside Deer Lodge;
(2) access through the fire gate on Charlwood Road at its junction with
Clarendon Drive;
(3) access through the fire gate on Langside Avenue at its junction with
Roehampton Lane;
(4) access through the removable bollards on Lacy Road.
10. The prohibitions will apply only during such times and to such extent as
shall from time to time be indicated by traffic signs and will not apply in
respect of:
(1) any vehicle being used for the purposes of that event or for fire
brigade, ambulance or police purposes;
(2) anything done with the permission or at the direction of a police
constable in uniform or a person authorised by Transport for London
or any London Borough affected by this Order.
11. Additional streets and lengths of streets may also be closed at the
direction of a police constable in uniform, to facilitate alternative routes.
12. Alternative routes will be signposted.
Dated this 18th day of July 2013
Roger Pye
Traffic Directorate, Transport for London
Palestra, 197 Blackfriars Road, London, SE1 8NJ
SCHEDULE 1 (see Article 3)
Roads affected by the race and forming part of the race route
From 0001 hours until 2359 hours on Saturday 3rd August 2013
In the Royal Parks
Birdcage Walk, Spur Road, The Mall
In the City of Westminster
Charing Cross, Whitehall (between its junctions with Charing Cross and Horse
Guards Avenue), Horse Guards Avenue, Great George Street, Parliament Square
(northern arm), Bridge Street, Victoria Embankment (as much as lies within the City
of Westminster)
In the City of London
Victoria Embankment (as much as lies within the City of London), Blackfriars
Underpass, Upper Thames Street, Lower Thames Street, Byward Street, Tower Hill,
Puddle Dock, Queen Victoria Street, Friday Street, Cannon Street (between its
junctions with New Change and Queen Street), New Change, Cheapside (between
its junction with New Change and King Street), King Street, Gresham Street
(between its junctions with King Street and Lothbury), Lothbury (between its
junctions with Gresham Street and Princes Street), Princes Street, Mansion House
Street, Garlick Hill (between its junctions with Queen Victoria Street and Great St
Thomas Apostle), Great St Thomas Apostle, Queen Street
From 1930 hours on Saturday 3rd August 2013 until 2359 hours on Sunday 4th
August 2013
In the London Borough of Hackney
Waterden Road
From 2000 hours on Saturday 3rd August 2013 until 2359 hours on Sunday 4th
August 2013
In the London Borough of Richmond Upon Thames
Chiswick Bridge (as much as lies within the London Borough of Richmond Upon
Thames), Clifford Avenue, Lower Richmond Road (between its junctions with
Clifford Avenue and Clifford Avenue), Upper Richmond Road West (between its
junctions with Clifford Avenue and Sheen Lane), Sheen Lane (between its junctions
with Upper Richmond Road West and Sawyers Hill), Sawyers Hill (between its
junctions with Sheen Lane and Queens Road), Queens Road (as much as lies
within the London Borough of Richmond Upon Thames between its junctions with
Sawyers Hill and the boundary of the Royal Borough of Kingston Upon Thames),
Kingston Bridge (as much as lies within the London Borough of Richmond Upon
Thames), Hampton Court Road (between its junctions with Kingston Bridge and
Hampton Court Bridge) Hampton Court Bridge (as much as lies within the London
Borough of Richmond Upon Thames)
From 0001 hours until 2359 hours on Sunday 4th August 2013
London Borough of Hackney
Eastway (between its junctions with Waterden Road and East Cross Route), East
Cross Route (as much as lies within the London Borough of Hackney)
London Borough of Tower Hamlets
East Cross Route (as much as lies within the London Borough of Tower Hamlets),
Blackwall Tunnel Northern Approach, Brunswick Road, St Leonards Road, East
India Dock Road (between its junctions with St Leonards Road and Leamouth
Road), Leamouth Road, Leamouth Roundabout, Aspen Way (between its junctions
with Leamouth Road roundabout off slip and Limehouse Link), Limehouse Link,
The Highway, East Smithfield, Tower Hill
In the City of London
Byward Street, Lower Thames Street, Upper Thames Street, Blackfriars Underpass,
Victoria Embankment (as much as lies within the City of London)
In the City of Westminster
Victoria Embankment (between the boundary of the City of London and its
junction with Northumberland Avenue), Charing Cross, Cockspur Street, Pall Mall,
St Jamess Street, Piccadilly (between its junctions with St Jamess Street and Hyde
Park Corner), Hyde Park Corner, Duke of Wellington Place, Knightsbridge (as much
as lies within the City of Westminster), Whitehall, Parliament Street, Parliament
Square (eastern arm), St Margaret Street, Old Palace Yard, Abingdon Street,
Millbank, Grosvenor Road, Knightsbridge (as much as lies within the City of
Westminster between its junctions with Hyde Park Corner and Brompton Road),
Brompton Road (as much as lies within the City of Westminster)
In the Royal Parks
Constitution Hill, The Mall
In the Royal Borough of Kensington and Chelsea
Chelsea Embankment, Knightsbridge (as much as lies within the Royal Borough of
Kensington and Chelsea between its junctions with Lowndes Street and Brompton
Road), Brompton Road (as much as lies within the Royal Borough of Kensington and
Chelsea between its junctions with Knightsbridge and Cromwell Gardens), Thurloe
Place (between its junctions with Brompton Road and Cromwell Gardens),
Cromwell Gardens, Cromwell Road, West Cromwell Road (as much as lies within
the Royal Borough of Kensington and Chelsea), Cheyne Walk, Cremorne Road,
Ashburnham Road (between its junctions with Cremorne Road and Kings Road),
Kings Road (as much as lies within the Royal Borough of Kensington and Chelsea
between its junctions with Ashburnham Road and News Kings Road)
In the London Borough of Hammersmith and Fulham
West Cromwell Road (as much as lies within the London Borough of Hammersmith
and Fulham), Talgarth Road, Hammersmith Flyover, Great West Road (as much as
lies within the London Borough of Hammersmith and Fulham), Kings Road (as much
as lies within the London Borough of Hammersmith and Fulham), New Kings Road,
Putney Bridge Approach, Putney Bridge (as much as lies within the London Borough
of Hammersmith and Fulham)
In the London Borough of Hounslow
Great West Road (as much as lies within the London Borough of Hounslow), Great
Chertsey Road, Burlington Lane, Alexandra Avenue, Chiswick Bridge (as much as
lies within the London Borough of Hounslow)
In the Royal Borough of Kingston Upon Thames
Queens Road (as much as lies within the Royal Borough of Kingston Upon
Thames), Kingston Hill (between its junctions with Queens Road and London
Road), London Road, Queen Elizabeth Road (between its junctions with London
Road and Cromwell Road), Cromwell Road, Richmond Road (between its junctions
with Cromwell Road and Sopwith Way), Sopwith Way, Kingsgate Road (between its
junctions with Sopwith Way and Wood Street), Wood Street (between its junctions
with Kingsgate Road and Horse Fair), Horse Fair, Kingston Bridge (as much as lies
within the Royal Borough of Kingston Upon Thames), Portsmouth Road (as much as
lies within the Royal Borough of Kingston Upon Thames), High Street, Eden Street,
Clarence Street (between its junctions with Eden Street and Wheatfield Way),
Wheatfield Way (between its junctions with Clarence Street and Fairfield North),
Fairfield North, Coombe Road, Coombe Lane West, Coombe Lane Flyover
In the London Borough of Merton
Coombe Lane (between its junctions with Coombe Lane Flyover and Lambton
Road), Lambton Road (between its junctions with Coombe Lane and Worple Road),
Worple Road, Wimbledon Hill Road, High Street, Parkside, Wimbledon Park Side (as
much as lies within the London Borough of Merton)
In the London Borough of Wandsworth
Putney Bridge (as much as lies within the London Borough of Wandsworth),
Wimbledon Park Side (as much as lies within the London Borough of Wandsworth),
Tibbets Corner, Tibbets Ride, Putney Hill, Putney High Street
SCHEDULE 2 (see Article 3)
Roads affected by the race and not forming part of the race route
From 0001 hours until 2359 hours on Saturday 3rd August 2013
In the Royal Parks
Constitution Hill, Horse Guards Road
In the City of Westminster
Marlborough Road, Link Road, Buckingham Palace Road eastbound (between its
junctions with Lower Grosvenor Place and Buckingham Gate), Buckingham Gate
eastbound (between its junctions with Buckingham Palace Road and Birdcage Walk),
Buckingham Gate northbound (between its junctions with Victoria Street and
Birdcage Walk), Victoria Street eastbound (between its junctions with Buckingham
Gate and Broad Sanctuary), Broad Sanctuary eastbound, Broadway northbound,
Storeys Gate northbound, Parliament Street northbound, Whitehall northbound
(between its junctions with Parliament Street and Horse Guards Avenue),
Westminster Bridge westbound (as much as lies within the City of Westminster),
Trafalgar Square, Northumberland Avenue eastbound (local access maintained),
Charing Cross Road southbound, St Martins Place southbound, Great Scotland
Yard westbound (between its junctions with Scotland Place and Whitehall),
Whitehall Place westbound (between its junctions with Scotland Place and
Whitehall), Whitehall Court (local access maintained), Savoy Place eastbound
(between its junctions with Savoy Hill and Victoria Embankment), Savoy Street
southbound, Slip Road between Aldwych eastern arm and Strand westbound,
Arundel Street southbound
In the City of London
Temple Avenue southbound, Westbound slip road from Blackfriars Bridge
northbound leading to Victoria Embankment, Westbound slip road from New
Bridge Street leading to Victoria Embankment, Ludgate Hill eastbound, St Pauls
Churchyard eastbound, Cannon Street westbound (between its junctions with New
Change and St Pauls Churchyard and between its junctions with King William
Street and Queen Victoria Street), Cheapside (between its junctions with New
Change and St Martin Le Grand), Gresham Street eastbound (between its junctions
with St Martin Le Grand and King Street)(local access maintained), Foster Lane,
Gutter Street southbound, Wood Street southbound (between its junctions with
Gresham Street and Cheapside), Basinghall Street (between its junctions with
Basinghall Avenue and Gresham Street), Moorgate southbound (between its
junctions with South Place and Lothbury)(local access maintained), Lothbury
westbound (between its junctions with Throgmorton Street and Princes Street),
Threadneedle Street westbound (between its junctions with Bishopsgate and
Princes Street), Old Broad Street southbound (between its junctions with
Wormwood Street and Threadneedle Street), Cornhill westbound, Leadenhall
Street westbound, Lombard Street westbound, King William Street northbound
(between its junctions with Cannon Street and Bank junction), Lombard Street
northbound (between its junctions with King William Street and Bank junction),
Arthur Street westbound, Monument Street eastbound, Fish Street Hill
southbound (between its junctions with Monument Street and Lower Thames
Street), Southwark Bridge northbound (as much as lies within the City of London)
Trinity Square southbound (as much as lies within the City of London), Great Tower
Street eastbound
In the London Borough of Lambeth
Westminster Bridge (as much as lies within the London Borough of Lambeth),
Westminster Bridge Road westbound (between its junctions with Lambeth Palace
Road and Westminster Bridge)
In the London Borough of Southwark
Southwark Bridge Road northbound (between its junctions with Southwark Street
and Southwark Bridge)(local access maintained), Southwark Bridge northbound (as
much as lies within the London Borough of Southwark)
In the London Borough of Tower Hamlets
Trinity Square southbound (as much as lies within the London Borough of Tower
Hamlets)
From 2000 hours on Saturday 3rd August 2013 until 2359 hours on Sunday 4th
August 2013
In the London Borough of Richmond upon Thames
Thames Street eastbound, Hampton Court Road (between its junctions with
Hampton Court Way and Thames Street)(local access maintained), High Street
southbound (between its junctions with Park Road and Hampton Court Road),
Church Grove southbound (local access maintained), Mortlake Road southbound,
Upper Richmond Road West eastbound (between its junctions with Manor Road
and Clifford Avenue), Sheen Road eastbound (between its junctions with Manor
Road and Upper Richmond Road), Upper Richmond Road West westbound (as
much as lies within the London Borough of Richmond upon Thames between its
junctions with Upper Richmond Road and Sheen Lane), Upper Richmond Road
westbound (as much as lies within the London Borough of Richmond upon Thames
between its junctions with Roehampton Lane and Upper Richmond Road
West)(local access maintained), Larches Avenue, Colston Road, Sheen Gate
Gardens, Penrhyn Crescent, Palmerston Road, Christchurch Road, Wayside, York
Avenue (North), Vicarage Road, Stonehill Road, York Avenue (South), Clare Lawn
Avenue, Fife Road, Muirdown Avenue, Shrewsbury Avenue, Sheen Lane (between
its junctions with Upper Richmond Road and Mortlake High Street), High Street
(Hampton Wick)(between its junctions with Kingston Bridge roundabout and
Vicarage Road), Park Road (between its junctions with High Street and St Johns
Road), Shalstone Road, Somerton Avenue, Kingsway, St Leonards Road, Langdale
Close, Graemesdyke Avenue, Deanhill Road, Coval Road, Carlton Road, Connaught
Road, Leinster Avenue, Elm Road, Columbia Square
From 0001 hours until 2359 hours on Sunday 4th August 2013
London Borough of Redbridge
Transport for London Public Notice
ROAD TRAFFIC REGULATION ACT 1984 THE PRUDENTIAL RIDE LO
Eastern Avenue westbound (as much as lies within the London Borough of
Redbridge between its junctions with North Circular Road and the boundary of the
London Borough of Waltham Forest), Redbridge Lane West
London Borough of Waltham Forest
Eastern Avenue westbound (as much as lies within the London Borough of
Waltham Forest between its junctions with the boundary of the London Borough of
Redbridge and East Cross Route), East Cross Route westbound (as much as lies
within the London Borough of Waltham Forest)
London Borough of Newham
East Cross Route westbound (as much as lies within the London Borough of
Newham), Bow Interchange access slip roads (as much as lies within the London
Borough of Newham), Lower Lea Crossing westbound (as much as lies within the
London Borough of Newham), Underpass from Newham Way leading to Aspen
Way (as much as lies within the London Borough of Newham), Newham Way
westbound (as much as lies within the London Borough of Newham between its
junctions with North Circular Road and Aspen Way), Newham Way westbound up
slip at Silvertown Way
In the London Borough of Tower Hamlets
Trinity Square southbound (as much as lies within the London Borough of Tower
Hamlets), Tower Bridge northbound (as much as lies within the London Borough of
Tower Hamlets), Tower Bridge Approach northbound, Abbott Road northbound,
East India Dock Road eastbound (between its junctions with Cotton Street and St
Leonards Road), Follett Street eastbound (local access maintained), Robin Hood
Lane slip road leading to Blackwall Tunnel, Slip Road from Prestons Road leading to
Aspen Way eastbound, Lower Lea Crossing westbound (as much as lies within the
London Borough of Tower Hamlets), Underpass from Newham Way leading to
Aspen Way (as much as lies within the London Borough of Tower Hamlets),
Newham Way westbound (as much as lies within the London Borough of Tower
Hamlets), Aspen Way westbound (betweens its junctions with Newham Way and
Leamouth Road roundabout off slip), Aspen Way westbound up slip at Prestons
Road, Aspen Way westbound and eastbound up slips at Upper Bank Street, Slip
Road from West India Dock Road leading into Aspen Way eastbound, East India
Dock Road eastbound (between its junctions with Burdett Road and St Leonards
Road), Butcher Row southbound, Mansell Street (as much as lies within the London
Borough of Tower Hamlets between its junctions with Prescot Street and East
Smithfield). Bow Interchange access slip roads (as much as lies within the London
Borough of Tower Hamlets)
In the City of London
Trinity Square southbound (as much as lies within the City of London), Great Tower
Street eastbound (between its junctions with Mark Lane and Byward Street), Arthur
Street westbound, Monument Street eastbound, Fish Street Hill southbound,
Lambeth Hill southbound, White Lion Hill, Puddle Dock southbound, Temple
Avenue southbound, Westbound slip road from Blackfriars Bridge northbound
leading to Victoria Embankment, Westbound slip road from New Bridge Street
leading to Victoria Embankment, Shorter Street, Mansell Street (as much as lies
within the City of London between its junctions with Prescot Street and East
Smithfield), Southwark Bridge northbound (as much as lies within the City of
London)
In the London Borough of Southwark
Queen Elizabeth Street eastbound (between its junctions with Tooley Street and
Tower Bridge Road), Tower Bridge Road northbound (between its junctions with
Tooley Street and Tower Bridge), Tower Bridge northbound (as much as lies within
the London Borough of Southwark), Southwark Bridge Road northbound (between
its junctions with Southwark Street and Southwark Bridge)(local access maintained),
Southwark Bridge northbound (as much as lies within the London Borough of
Southwark)
In the Royal Parks
Birdcage Walk
Horse Guards Road
In the City of Westminster
Temple Place, Arundel Street southbound, Surrey Street, Slip Road between
Aldwych eastern arm and Strand westbound, Strand westbound (between its
junctions with Aldwych western arm and Trafalgar Square), Savoy Place eastbound
(between its junctions with Savoy Hill and Victoria Embankment), Whitehall Place
eastbound (between its junctions with Whitehall Court and Northumberland
Avenue), Victoria Embankment (between its junctions with Bridge Street and
Northumberland Avenue), Great George Street, Storeys Gate northbound, Link
Road, Spur Road, Marlborough Road, Trafalgar Square (between its junctions with St
Martins Place and The Strand), Charing Cross Road southbound (between its
junctions with Shaftesbury Avenue and St Martins Place), St Martins Place
southbound, Shaftesbury Avenue westbound (as much as lies within the City of
Westminster)(local access maintained), Piccadilly Circus eastbound, Haymarket,
Jermyn Street (between its junctions with St Jamess Street and Duke St St.
Jamess), Bury Street (between its junctions with Ryder Street and Jermyn Street),
Grosvenor Place southbound, Piccadilly westbound (between its junctions with
Regent Street and St Jamess Street), Wilton Place northbound, Vauxhall Bridge
northbound (as much as lies within the City of Westminster), Lambeth Bridge
northbound (as much as lies within the City of Westminster), Westminster Bridge
northbound (as much as lies within the City of Westminster), Chelsea Bridge Road
southbound (as much as lies within the City of Westminster), Vauxhall Bridge Road
southbound (between its junctions with John Islip Street and Bessborough
Gardens), Bessborough Gardens southbound, Horseferry Road eastbound
(between its junctions with Marsham Street and Millbank), Broad Sanctuary, Park
Lane southbound, William Street (as much as lies within the City of Westminster),
Kensington Road eastbound (between its junction with Exhibition Road and
Knightsbridge)(except local buses), Knightsbridge eastbound (east of its junction
with Kensington Road), Exhibition Road (as much as lies within the City of
Westminster)(local access maintained), Queens Gate (as much as lies within the
City of Westminster)(local access maintained), St Jamess Square (local access
maintained), Waterloo Place (south of Pall Mall), Kensington Gore (as much as lies
within the City of Westminster)(local access maintained)
In the London Borough of Camden
Shaftesbury Avenue westbound (as much as lies within the London Borough of
Camden)(local access maintained), Gower Street, Bloomsbury Street
In the London Borough of Lambeth
Bridgefoot northbound, Vauxhall Bridge northbound (as much as lies within the
London Borough of Lambeth), Lambeth Bridge northbound (as much as lies within
the London Borough of Lambeth), Westminster Bridge northbound (as much as lies
within the London Borough of Lambeth), Westminster Bridge Road northbound
(between its junctions with Lambeth Palace Road and Westminster Bridge)
In the Royal Borough of Kensington and Chelsea
Chelsea Bridge northbound (as much as lies within the Royal Borough of
Kensington and Chelsea), Lower Sloane Street (local access maintained), Chelsea
Bridge Road southbound (as much as lies within the Royal Borough of Kensington
and Chelsea), William Street (as much as lies within the Royal Borough of
Kensington and Chelsea), Sloane Street northbound (between its junctions with
Basil Street and Knightsbridge), Egerton Terrace northbound (between its junctions
with Egerton Gardens (southern arm) and Knightsbridge), Brompton Road
northbound (north of its junction with Pelham Street), Exhibition Road (local access
maintained), Kensington Gore (as much as lies within the Royal Borough of
Kensington and Chelsea)(local access maintained), Queens Gate (local access
maintained), Palace Gate (local access maintained), Victoria Road (local access
maintained), Kensington Court (local access maintained), Wrights Lane (local access
maintained, Allen Street (local access maintained, Abingdon Road (local access
maintained), Thurloe Place eastbound (between its junctions with Exhibition Road
and Brompton Road), Cromwell Place (between its junctions with Thurloe Place and
Cromwell Road), Stanhope Mews East northbound, Stanhope Mews West
northbound, Stanhope Gardens (western arm), Gloucester Road (between its
junctions with Old Brompton Road and Cromwell Road)(local access maintained),
Ashburn Place northbound, Ashburn Gardens northbound, Collingham Road
northbound (between its junctions with Courtfield Gardens and Cromwell Road),
Collingham Place, Knaresborough Place northbound (between its junctions with
Earls Court Gardens and Cromwell Road), Gloucester Road southbound (between
its junctions with Queens Gate Gardens and Cromwell Road), Marloes Road
southbound (between its junctions with Lexham Gardens and Cromwell Road),
Earls Court Road (between its junctions with Kensington High Street and Cromwell
Gardens)(local access maintained), Warwick Gardens (local access maintained),
Bolton Gardens (local access maintained), Collingham Gardens eastern arm
(between its junctions with Bolton Gardens and Collingham Road)(local access
maintained), Gledhow Gardens (local access maintained), Bina Gardens (local
access maintained), Rosary Gardens (local access maintained), Clareville Grove
(local access maintained), Bute Street (local access maintained), Thurloe Square
(between its junctions with Thurloe Square southern arm and Pelham Street)(local
access maintained), Ovington Square (local access maintained), Beauchamp Place
(local access maintained), Pont Street (between its junctions with Sloane Street and
Walton Street)(local access maintained), Hans Crescent (between its junctions with
Sloane Street and Basil Street)(local access maintained), Walpole Street (local access
maintained), Smith Street (local access maintained), Shawfield Street (local access
maintained), Flood Street (local access maintained), Chelsea Manor Street (local
access maintained), Glebe Place (local access maintained), Old Church Street
(between its junctions with Kings Road and Chelsea Embankment)(local access
maintained), Milmans Street (local access maintained), Fernshaw Road (local access
maintained), Hortensia Road (local access maintained), Beaufort Street
southbound, Battersea Bridge northbound (as much as lies within the Royal
Borough of Kensington and Chelsea), Albert Bridge (as much as lies within the Royal
Borough of Kensington and Chelsea), Oakley Street southbound
In the London Borough of Hammersmith and Fulham
Gliddon Road northbound (between its junctions with Barons Court Road and
Talgarth Road), Fulham Palace Road southbound, Slip Road from Hammermsith
Bridge Road leading to Great West Road westbound, Gonville Street, Fulham High
Street southbound, Burlington Road southbound (between its junctions with
Rigault Road and New Kings Road), Buer Road southbound (between its junctions
with Fulham Park Gardens and New Kings Road), Elysium Street, Grimston Road
northbound (between its junctions with Ewald Road and New Kings Road),
Munster Road (local access maintained), Eddiscombe Road southbound, Gulon
Road southbound, Parsons Green (both arms), Wandsworth Bridge northbound (as
much as lies within the London Borough of Hammersmith and Fulham),
Wandsworth Bridge Road northbound, Weltje Road (local access maintained),
Rivercourt Road (local access maintained), Edith Road (local access maintained),
Auriol Road (local access maintained), Muden Street (local access maintained),
Southcombe Street (local access maintained), North End Road (local access
maintained), Mulgrave Road (local access maintained), Moylan Road (local access
maintained), Humbolt Road (local access maintained), Everyington Street (local
access maintained), Hawksmoor Street (local access maintained), Bothwell Street
(local access maintained), Landridge Road (local access maintained), Fulham Park
Road (local access maintained), Dancer Road (local access maintained), Crookham
Road (local access maintained), Mimosa Street (local access maintained),
Whittingstall Road (local access maintained), St Maur Road (local access
maintained), Parsons Green Lane (local access maintained), Shottendane Road
(local access maintained), Harwood Road (local access maintained), Waterford Road
(local access maintained), Maxwell Road (local access maintained)
In the London Borough of Hounslow
Slip Road from Chiswick Roundabout leading to Great West Road eastbound,
Staveley Road southbound (between its junctions with Burlington Lane and Great
Chertsey Lane), Burlington Lane eastbound (between its junctions with Staveley
Road and Alexandra Avenue), Mawson Lane (west of its junction with Great West
Road)
In the Royal Borough of Kingston upon Thames
Seething Wells Lane northbound, Akerman Road westbound, Brighton Road
westbound (between its junctions with Maple Road and Portsmouth Road), The
Mall westbound, Westfield Road westbound, Cleaveland Road westbound, St
Leonards Road westbound, Cadogan Road westbound, Grove Road westbound
(between its junctions with Maple Road and Portsmouth Road), Catherine Road
westbound, Uxbridge Road, Palace Road westbound, Anglesea Road westbound,
Surbiton Road northbound, Woodbines Avenue westbound (local access
maintained), Kingston Hall Road westbound, Wheatfield Way northbound (between
its junctions with Kingston Hall Road and Fairfield North), Albert Road (between its
junctions with Church Road and London Road), Cambridge Road northbound
(between its junctions with Church Road and London Road), Station Road
northbound, Manorgate Road northbound, Wolverton Avenue northbound,
Dickerage Road northbound (between its junctions with Revell Road and Coombe
Lane West), High Drive northbound (between its junctions with Woodlands Avenue
and Coombe Lane West), Crown Road northbound (between its junctions with
Woodlands Avenue and Coombe Lane West), Kingston Hill westbound (between
its junctions with George Street and Queens Road), Crescent Road westbound,
Liverpool Road westbound, Kings Road eastbound (between its junctions with Park
Road and Queens Road), New Road eastbound, Tudor Road eastbound, Alexandra
Road eastbound, Park Road southbound (between its junctions with Brunswick
Road and Kingston Hill), Clifton Road southbound (between its junctions with
Canbury Park Road and London Road), Queen Elizabeth Road southbound,
Richmond Road southbound (between its junctions with Sury Basin and Sopwith
Way), Coombe Lane Flyover access slip roads
London Borough of Merton
Raynes Park Bridge northbound (between its junctions with Approach Road and
Coombe Lane), Coombe Lane (between its junctions with Pepys Road and
Lambton Road), Pepys Road (between its junctions with Worple Road and Coombe
Lane), Langham Road northbound (between its junctions with Stanton Road and
Worple Road), Francis Grove northbound (between its junctions with St Georges
Road and Worple Road), St Georges Road westbound (local access maintained),
Wimbledon Bridge westbound, Belvedere Drive southbound (between its junctions
with Belvedere Avenue and Wimbledon Hill Road)(local access maintained),
Belvedere Grove southbound (between its junctions with Belvedere Avenue and
Wimbledon Hill Road), Church Road southbound (between its junctions with
Belvedere Avenue and High Street)(local access maintained), High Street
(Wimbledon)(between its junctions with The Green and High Street), The Green,
Cannizaro Road northbound (between its junctions with The Causeway and
Parkside), The Causeway (between its junctions with Cannizaro Road and The
Green), Parkside Avenue westbound (between its junctions with Parkside Gardens
and Parkside), Calonne Road westbound (between its junctions with Parkside
Gardens and Parkside)
In the London Borough of Wandsworth
Chelsea Bridge northbound (as much as lies within the London Borough of
Wandsworth), Queenstown Road northbound (between its junctions with Battersea
Park Road and Chelsea Bridge)(local access maintained), Queens Circus
northbound (local access maintained including to Chelsea Gate, Battersea Park),
Bridgend Road northbound, Wandsworth Bridge northbound (as much as lies within
the London Borough of Wandsworth), Battersea Bridge Road northbound (as much
as lies within the London Borough of Wandsworth between its junctions with
Prince of Wales Drive and Battersea Bridge)(local access maintained), Battersea
Bridge northbound (as much as lies within the London Borough of Wandsworth),
Battersea Church Road northbound (between its junctions with Battersea Square
and Battersea Bridge Road)(local access maintained), Elcho Street northbound,
Albert Bridge Road northbound (between its junctions with Parkgate Road and
Albert Bridge), Albert Bridge (as much as lies within the London Borough of
Wandsworth), Upper Richmond Road West westbound (as much as lies within the
London Borough of Wandsworth), Withycombe Road westbound (between its
junctions with Victoria Drive and Wimbledon Park Side), Westleigh Avenue
eastbound (between its junctions with Genoa Road and Putney Hill), Chartfield
Avenue eastbound (between its junctions with Gwendolen Avenue and Putney Hill),
Cambalt Road eastbound, St Johns Avenue eastbound (between its junctions with
Burston Road and Putney Hill), Lytton Grove westbound (between its junctions with
Holmbush Road and Putney Hill), Carlton Drive westbound (between its junctions
with Rayners Road and Putney Hill), St Johns Avenue westbound (between its
junctions with Rayners Road and Putney Hill), Upper Richmond Road westbound
(between its junctions with West Hill and Putney Hill)(local access maintained),
Putney Bridge Road northbound (local access maintained), Disraeli Road westbound
(local access maintained), Werter Road westbound (local access maintained),
Montserrat Road westbound (local access maintained), Upper Richmond Road
eastbound (between its junctions with Burston Road and Putney Hill), Lower
Richmond Road eastbound (between its junctions with Queens Ride and Putney
High Street)(local access maintained), Upper Richmond Road westbound (as much
as lies within the London Borough of Wandsworth between its junctions with
Roehampton Lane and Upper Richmond Road West)(local access maintained),
Tibbets Corner access slip roads, Weimar Street eastbound (local access
maintained), Felsham Road (between its junctions with Weimar Street and Putney
High Street), Lacy Road (between its junctions with Walkers Place and Putney High
Street), Chelverton Road eastbound (local access maintained), Norroy Road
eastbound (local access maintained), Kersfield Road westbound (local access
maintained), Putney Heath (between its junctions with Putney Hill and Wildcroft
Road), Putney Heath Lane (between its junctions with Putney Hill and Kersfield
Road), Inner Park Road westbound (local access maintained), Queensmere Road
westbound (local access maintained), Selhurst Close, Putney Hill, Radcliffe Square
SCHEDULE 3 (see Article 4)
From 0001 hours until 2359 hours on Saturday 3rd August 2013
In the City of Westminster
Whitehall Court (reversal), Parliament Square southside (reversal) between its
junctions with Broad Sanctuary and St Margaret Street, Spring Gardens northern
arm (suspension), Temple Place (reversal) between its junctions with Arundel Street
and its eastern junction with Victoria Embankment
From 0001 hours until 2359 hours on Sunday 4th August 2013
In the City of Westminster
Rapheal Street (reversal)
In the Royal Borough of Kensington and Chelsea
Collingham Road (reversal) between Courtfield Gardens southern arm and
Cromwell Road, Danvers Street (reversal), Old Church Street (reversal) between
Chelsea Embankment and Kings Road, Edith Grove (reversal) between Kings Road
and Cremorne Road, Seville Street (reversal), Hans Road (reversal), Egerton Place
(reversal) between Egerton Gardens and Brompton Road, Queensbury Place
(reversal), Stanhope Gardens (reversal) east and west arm, Courtfield Gardens
(revesal) east arm, Swan Walk (reversal) between Chelsea Embankment and Dilke
Street, Cheyne Walk (reversal) between Nos.1 and 26, Milmans Street
In the London Borough of Hammersmith and Fulham
Broomhouse Road (reversal)
In the London Borough of Hounslow
Paxton Road (suspension)
In the London Borough of Richmond upon Thames
Colston Road (reversal)
In the Royal Borough of Kingston upon Thames
The Bittoms (suspension) between East Lane and Kingston Hall Road, Ashdown
Road (suspension), Lady Booth Road (suspension) at its junction with Wheatfield
Way, Queen Elizabeth Road (suspension) between Canbury Park Road and Gordon
Road, Seven Kings Way (suspension) for buses only, Skerne Road (suspension),
Downhall Road (reversal), Albert Road (reversal)
In the London Borough of Wandsworth
Disraeli Road (suspension), Werter Road (suspension), Montserrat Road (suspension)
In the London Borough of Merton
Delamere Road (suspension) between its junctions with Worple Road and Ethelbert
Road), Albert Grove (suspension) at its junction with Worple Road
SCHEDULE 4 (see Article 5)
From 0001 hours until 0700 hours on Sunday 4th August 2013
In the London Borough of Southwark
Jamaica Road (both sides) between its junctions with Mill Street and Lower Road
In the London Borough of Hackney
Kingsland Road (both sides) between its junctions with Whiston Road and Cremer Street
In the Royal Borough of Greenwich
Blackwall Lane (both sides) between its junctions with Woolwich Road and
Salutation Road
In the London Borough of Newham
Royal Albert Way (southside) between its junctions with Gallions Roundabout and
Beckton Park Roundabout
ONDON (RESTRICTION OF TRAFFIC IN CONNECTION WITH CERTAIN EVENTS) ORDER 2013
MAYOR OF LONDON
THURSDAY 18 JULY 2013
16
NEWS
cityam.com
ROAD TRAFFIC REGULATION ACT 1984
THE VIRGIN ACTIVE LONDON TRIATHLON (RESTRICTION OF TRAFFIC IN CONNECTION WITH CERTAIN
EVENTS) ORDER 2013
MAYOR OF LONDON
Transport for London Public Notice
1. Transport for London hereby gives notice that, after
consulting the Commissioner of Police of the City of
London, the Commissioner of Police of the
Metropolis, the London Boroughs of Tower Hamlets
and Southwark, the City of London Corporation and
the City of Westminster, it has made the above
named Order under section 16(A) of the Road Trafc
Regulation Act 1984, for the purpose specied in
paragraph 2. The effect of the Order is summarised in
paragraph 3
2. The purpose of the Order is to enable the social
event of The Virgin Active London Triathlon to take
place.
3. The effect of the Order will be to prohibit any vehicle
from entering, proceeding or stopping in the
carriageway of any street or length of street listed in
Schedule 1 to this Notice between 00:01 hours on
Saturday 27th July 2013 and 20:00 hours on Sunday
28th July 2013.
4. The provisions made in any Order in respect of one-
way working which applies to Savoy Street (between
its junctions with Savoy Hill and Victoria
Embankment) in the City of Westminster, are hereby
suspended for the duration of this Order to allow
two-way working.
5. This Order will also temporarily suspend the bus
lanes on East India Dock Road (between its junctions
with Brunswick Road and Leamouth Road) in the
London Borough of Tower Hamlets.
6. For the duration of the Order, the following will be
prohibited in the London Borough of Tower Hamlets:
(1) the right turn from Thomas More Street into East
Smitheld;
(2) the right turn from Cable Street into Butcher Row;
(3) access to Butcher Row from The Royal Foundation
of St Katharine side road;
(4) the right turn from Aspen Way eastbound into
Upper Bank Street.
7. The prohibitions will apply only during such times
and to such extent as shall from time to time be
indicated by trafc signs and will not apply in respect
of:
(1) any vehicle being used for the purposes of that
event or for re brigade, ambulance or police
purposes;
(2) anything done with the permission or at the
direction of a police constable in uniform or a
person authorised by Transport for London.
8. Additional streets and lengths of streets may also be
closed at the direction of a police constable in
uniform, to facilitate alternative routes.
9. At such times as the prohibitions are in force
alternative routes will be indicated by trafc signs.
Dated this 18th day of July 2013
Roger Pye
Forward Planning Manager
Transport for London, Palestra
197 Blackfriars Road, London, SE1 8NJ
In the City of Westminster
Victoria Embankment (as much as lies within the City of
Westminster), Northumberland Avenue (between its
junctions with Embankment Place and Victoria
Embankment), Temple Place
In the City of London
Victoria Embankment (as much as lies within the City of
London), Westbound slip road from Blackfriars Bridge
northbound leading to Victoria Embankment, Westbound
slip road from New Bridge Street leading to Victoria
Embankment, Blackfriars Underpass, White Lion Hill,
Upper Thames Street (both directions)(between its
junctions with Blackfriars Underpass and High Timber
Street), Upper Thames Street eastbound (between its
junctions with High Timber Street and Southwark Bridge),
Upper Thames Street (both directions)(between its
junctions with Southwark Bridge and Lower Thames
Street)(except buses westbound), Lambeth Hill, Lower
Thames Street eastbound (between its junctions with
Upper Thames Street and Byward Street)(except buses
westbound), Arthur Street southbound, Great Tower
Street (between its junctions with Byward Street and Mark
Lane), Byward Street (as much as lies within the City of
London)(except buses westbound), Tower Hill (as much as
lies within the City of London)(except buses westbound),
Minories (as much as lies within the City of London
between its junctions with Tower Hill and East
Smitheld)(except buses westbound), Mansell Street (as
much as lies within the City of London between its
junctions with Royal Mint Street and Minories)
In the London Borough of Tower Hamlets
Tower Bridge northbound (as much as lies within the
London Borough of Tower Hamlets)(except buses and
local access), Byward Street (as much as lies within the
London Borough of Tower Hamlets)(except buses
westbound), Tower Hill (as much as lies within the
London Borough of Tower Hamlets)(except buses
westbound), Minories (as much as lies within the London
Borough of Tower Hamlets between its junctions with
Tower Hill and East Smitheld)(except buses westbound),
Mansell Street (as much as lies within the London
Borough of Tower Hamlets between its junctions with
Royal Mint Street and Minories), East Smitheld
eastbound, The Highway (except local access westbound
between its junctions with Jardine Road and Glamis Road
and eastbound between School House Lane and Butcher
Row). Butcher Row (except local access), Limehouse Link,
Aspen Way (except local access eastbound between its
junctions with Limehouse Link and Cotton St exit and
westbound between Leamouth Road and Cotton Street
exit), Slip roads linking Westferry Road to Limehouse Link
Tunnel, Leamouth Road, Leamouth Road Roundabout,
Lower Lea Crossing (as much as lies within the London
Borough of Tower Hamlets)
In the London Borough of Southwark
Tower Bridge Road northbound (except buses and local
access between its junctions with Queen Elizabeth Street
and Tower Bridge), Tower Bridge northbound (as much as
lies within the London Borough of Southwark) (except
buses and local access)
SCHEDULE 1 (see Article 3)
Westhouse Securities
The broking group has
announced the appointment
of Paul Locke as investment
funds analyst. He joins from
Cantor Fitzgerald Europe,
where he was a senior funds
analyst. Prior to that, he was a
senior funds analyst at
Canaccord Genuity.
Lloyds Bank
John Richardson has joined Lloyds Bank Commercial
Banking as head of building societies coverage. He has
over 25 years experience in the building societies and
mortgage sector. He was most recently executive
director in the financial institutions group at Santander
Global Banking & Markets.
Norton Rose Fulbright
The legal practice has recruited Richard Bull to its
corporate, mergers and acquisitions, and securities
practice. He joins from CMS Cameron McKenna.
Aviva Investors
Liam Spillane has been appointed emerging market
debt currency portfolio manager in the asset
management businesss emerging market debt team.
He was most recently currency manager at Overlay
Asset Management.
Barclays
Matt Walton has been appointed relationship director
in the banks hospitality and leisure team. He joins
from RBS, and will focus on developing relationships
with new and prospective clients.
Royal Bank of Canada Wealth Management
The wealth management firm has hired Daniel Ellis as
head of investments for the British Isles. He joins from
HSBC Private Bank, where he was head of its private
bank investment group for the UK and Channel Islands.
Winckworth Sherwood
The law firm has appointed Marie-Louise King as a
partner in its dispute resolution team. She was most
recently a partner at Druces.
Equity Development
The investor marketing firm has hired Robin Campbell
as head of its LifeSciences division. He has previously
worked at Credit Suisse, Panmure, and Seymour Pierce.
WHOS SWITCHING JOBS Edited by Annabel Palmer CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
ENGINEERING firm Smiths Group
yesterday warned that full-year oper-
ating profits would be up to 15m
below expectations due to issues in
its Smiths Detection unit.
The FTSE 100-listed company said
that it had identified that three
Smiths Detection contracts entered
into prior to 2010 will be materially
adverse to previous expectations.
In an interim management state-
ment on 24 May, Smiths Group had
highlighted that the headline operat-
ing margin at Smiths Detection
would be affected by certain
contracts and overheads at new man-
ufacturing sites.
Smiths Detection, which accounts
for about 17 per cent of the
companys revenue, makes sensors
that detect explosives, weapons,
chemical agents, nuclear and radioac-
tive material, and narcotics.
All other divisions are trading
broadly in line with forecasts, the
company said.
The firm is scheduled to report full-
year results on 18 September.
Smiths appointed Sir George
Buckley as its chairman last month,
Smiths shares
nosedive after
profit warning
BY SUZIE NEUWIRTH who was previously head of US manu-
facturing giant 3M.
He will join the board in August and
formally succeed Donald Brydon
after he steps down at the Smiths
annual general meeting in November.
The firm confirmed at the end of
May that it was in early stage talks to
sell its medical unit, which con-
tributed more than 30 per cent of
operating profit last year, for approxi-
mately 2bn.
The plans generated speculation
about a possible company break-up or
groundwork to become a takeover tar-
get, although no deal was
announced.
Smiths shares closed down one per
cent at 1,377p.
The performance of [the detection] division is falling below expectations on the
back of problems with three contracts entered into prior to 2010 and costs
relating to provisions relating to legal disputes. We have reduced our
2013 earnings per share [forecast] to reflect the additional costs.
ANALYST VIEWS

Contract cost overruns are never good news apart from the direct financial
impact, they call into question a companys systems and conservatism but
the 15m hit for Smiths Detection looks like a one-off in a business that
is now on an improving trend.

Smiths Group released a pre-close trading update highlighting weaker contract

mix within its detection business. These issues appear to be one-off in nature,
derived from contacts won prior to 2010, but we believe the shares will
take a pause for breath after a recent strength.

HOW DID YOU TAKE SMITHS

GROUPS RESULTS?
GLEN LIDDY JP MORGAN
CHRIS DYETT INVESTEC
SCOTT CAGEHIN NUMIS
Smiths Group PLC
17Jul 11 Jul 12Jul 15Jul 16Jul
1,360
1,400
1,320
P
1,377.00
17Jul
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THURSDAY 18 JULY 2013
17
cityam.com
In association with
LONDONREPORT
B
RITAINS FTSE 100 rose
yesterday, with miners cheered
by a string of solid output
numbers from the likes of BHP
Billiton, and with the US Federal
Reserve reassuring that stimulus will
only be cut if the economy is strong.
Fed chairman Ben Bernanke sig-
nalled plans to start scaling back bond
purchases this year could be altered if
the economic outlook deteriorates.
The comments offered the biggest
boost to bank stocks, which have the
most direct access to the extra central
bank liquidity. The sector which also
benefited from positive sentiment
after strong profits at Bank of
America provided the biggest boost
to the FTSE 100, of some 6.8 points.
Miners came second, after BHP
notched up a robust rise in iron ore
output, following on from a solid
update from rival Rio Tinto, and send-
ing its shares up two per cent.
The production numbers eased con-
cerns about the outlook of the sector,
which has been the clear laggard this
year amid slowing growth in top mar-
ket China and falling metal prices.
Its where people are expecting bad
news it might not be quite as bad.
We've already had Billiton and Rio
come out with production numbers
which arent too bad and, because
they are so bashed up, they are doing
OK, said Andy Ash, head of sales at
Monument Securities.
Miners have the lowest earnings
expectations of all the sectors, with
StarMine SmartEstimates forecasting
a 23.6 per cent drop this year, setting
the bar low for any positive surprises.
Thanks to the gains in the miners
and the banks two of its three
biggest sectors the FTSE 100 closed
up 15.58 points, or 0.2 per cent, at
6,571.93 points, nearing six-week
highs and recovering from an early
dip on Bank of England minutes.
The minutes showed policymakers
unanimously voted against expanding
the BoEs asset-buying programme.
However, analysts said the vote could
be seen as a truce for the debut of new
governor Mark Carney, and further
quantitative easing stimulus could
still follow in coming months.
We hold the view that we will have
a restart of QE in the UK and FTSE
should benefit as a result because ster-
ling should come under pressure,
said Kokou Agbo-Bloua, of BNP
Paribas.
A survey of clients by Barclays
Stockbrokers chimed with the upbeat
view on the FTSEs medium term out-
look, with 70 per cent saying it is well
positioned for a recovery.
FTSE lifted as
miners report
robust output
CITY
YOUR ONE-
STOP SHOP
BROKER VIEWS AND
MARKET REPORTS
FTSE
17Jul 11 Jul 12Jul 15Jul 16Jul
6,540
6,560
6,580
6,600
6,620
6,571.93
17 Jul
DASHBOARD
Stocks edge up
on Bernankes
QE assurances
U
S stocks ended modestly
higher yesterday after
Federal Reserve chairman
Ben Bernanke said the
timeline for winding down the
organisations stimulus
programme was not set in stone.
Shares of Bank of America and
Yahoo rose after both companies
reported stronger-than-expected
quarterly results. Both ranked
among the names giving the
biggest boost to the S&P 500.
The three major US stock indexes
bounced back from Tuesdays lower
close, which broke the S&P 500s
eight-day string of gains.
Bernanke said the Federal Reserve
still expects to start scaling back its
massive bond-buying programme
later this year, but he said the time-
line depended on the economic
outlook. He made the comments
yesterday before the House
Financial Services Committee as
part of his twice-yearly report to
Congress on monetary policy.
Today he will appear before the
Senate Banking Committee.
Bernankes comments on 22 May
triggered a drop of nearly six per
cent in the S&P 500 in the month
that followed. But remarks from
Bernanke and other Fed officials
since then have calmed the market
and erased those declines. The S&P
500 is just several points away from
the all-time intraday high of
1,687.18 it reached on 22 May.
The Dow Jones industrial average
rose 18.67 points, or 0.12 per cent,
to end at 15,470.52. The Standard &
Poors 500 Index gained 4.65 points,
or 0.28 per cent, to finish at
1,680.91. The Nasdaq Composite
Index advanced 11.50 points, or
0.32 per cent, to close at 3,610.00.
NEW YORK
REPORT
CAPITA
RBC downgrades the outsourcing firm to underperform from sector perform but increases
its price target to 870p from 840p ahead of half-year results next week. The broker sees strong
revenue growth for the year but thinks tough valuations support a downgrade.
Capita PLC
11Jul 12Jul 15Jul 16Jul 17Jul
p
1,050
1,020
1,015
1,025
1,035
1,045
1,030
1,040
1,055
1,036.00
17 Jul
RSA INSURANCE
Citigroup upgrades its rating on the insurer to buy from neutral and raises its target price to
146p from 124p. The broker sees potential for better earnings growth driven by underwriting
profitability, and upcoming first half results could show signs of a turnaround in weaker businesses.
RSA Insurance Group PLC
11Jul 12Jul 15Jul 16Jul 17Jul
p
130
125
127
129
126
128
131
128.00
17 Jul
THOMAS COOK
UBS increases its rating for the holiday company to buy from neutral and upgrades its
target price to 180p from 145p. The broker said its fiscal year pricing growth estimates of 1.6 per
cent were too conservative and increases the figure to 4.7 per cent.
Thomas Cook Group PLC
11Jul 12Jul 15Jul 16Jul 17Jul
p
146
140
144
142
148
146.50
17 Jul
To appear in Best of the Brokers, email your research to notes@cityam.com
BESTof theBROKERS
D
IGGING down to find out
who is really in control of a
company and to whom the
profits are going is not
easy. A raft of clever tricks is
available to those who, for one
reason or another, might want to
hide their ownership or association.
Why is this a problem? The World
Bank found that, in 70 per cent of
grand corruption cases that it
investigated, at least one corporate
vehicle was used to conceal beneficial
ownership who really owns a
company and the true origins of
funds. The total proceeds of
corruption of this 70 per cent of cases
totalled well over $50bn (32.8bn).
David Cameron secured agreement
at the G8 to crack down on the
loopholes that allow this, and
M
ARK Carney has had a lucky
start as governor of the Bank
of England. Business surveys
and labour market data
suggest that the UK
economy continues to grow and has
probably picked up momentum. He
has narrowly avoided having to write
his first explanatory letter to the
chancellor, with inflation coming in at
below 3 per cent in June.
So far so good. But what next?
Yesterday, analysts were scouring the
minutes of Carneys first Monetary
Policy Committee (MPC) meeting for
clues.
The first issue of interest was that the
new governor did not follow his prede-
cessor in voting for more quantitative
easing (QE). Indeed, there were no votes
for more easing. The Committee was
unanimous in voting for no change in
policy for the first time since October
last year.
But the minutes make clear that this
unanimity may not last. The majority
of the Committee believe that current
policy settings are right for the econo-
cityam.com/forum
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharpcomment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.
18
THURSDAY 18 JULY 2013
ANDREW SENTANCE
Designing forward guidance could be
tricky despite current MPC unanimity
my, given the improvement in growth
and the current inflation outlook. A
minority appear keen on more stimu-
lus, but are biding their time waiting
for the completion of the Banks
reviews of forward guidance and the
potential for using unconventional pol-
icy tools other than QE. So the consen-
sus on the Committee could break
down next month when these reviews
are completed, and when we may also
find out which camp Carney belongs
to.
The second issue of interest in the
minutes is that they showed the begin-
nings of a debate within the MPC on
forward guidance the idea that cen-
tral banks can influence the economy
by making statements about their
future intentions. The MPC has already
dipped its toe in the water, with guid-
ance that the markets had started to
expect interest rates to rise too quickly.
But a more substantial statement is due
in August, alongside the Banks
Inflation Report.
There werent many clues in these
minutes about the approach the
Committee is planning to take. But
there were plenty of indications of the
difficulties the MPC will encounter in
designing appropriate guidance.
First, it is clear that there are still con-
siderable differences among MPC mem-
bers on how policy should evolve. Even
among the majority, which appears
more comfortable with keeping policy
on hold for now, there is a division of
view. Some believe that more QE could
help the economy if needed, while oth-
ers think it would not be effective. With
such policy differences, designing cred-
ible forward guidance, commanding
convincing majority support, will be a
major challenge.
Second, clear forward guidance
requires the MPC to look ahead, using
forecasts to form a view of the economy
in the future. However, forecasting the
UK and other economies since the
financial crisis has been very difficult.
Many Western economies no longer
appear to be behaving as they did in the
past reflecting a new normal of
weaker growth, higher inflation and
more volatility. Generally, the Bank of
England has been too optimistic in its
forecasts, expecting growth to be
stronger and inflation lower than has
been the case.
When the MPC issued a statement
after its July meeting, it was because
markets had started to anticipate the
first MPC rate rise in 2015 rather than
2016 based on a view of what should
happen in two to three years time. But
the reality is that we are all very uncer-
tain about how the economy will be
performing in 2015-16 in a new nor-
mal world. Statements about future
policy could easily be contradicted or
reversed because of changing economic
circumstances.
One way round this problem is to
make guidance conditional on what is
happening in the economy as the US
Federal Reserve has done by setting a
threshold for the unemployment rate
before it will consider raising interest
rates. But this creates another problem.
Different economic indicators can
point in different directions as GDP
growth and unemployment have done
over the UK recovery. In general, it
makes more sense to look at all the
available data when setting monetary
policy, rather than over-emphasising
one or two indicators.
For all these reasons, Carney and the
MPC are likely to struggle to design
credible and consistent guidance.
Perhaps they should heed the advice of
John Maynard Keynes, who famously
justified his frequent changes of view
by quipping: When the facts change, I
change my mind. What do you do, Sir?
The basic problem is that the economy
can change unpredictably and then
the appropriate monetary policy
changes too.
Andrew Sentance is senior economic adviser
at PwC, and a former member of the Bank of
Englands Monetary Policy Committee.
yesterday announced he is planning
to push this agenda through to the
G20 important first steps.
Accordingly, earlier this week
business secretary Vince Cable
announced he would be looking at
introducing a number of measures
that expose beneficial ownership.
For example, bearer shares
unregistered stock certificates that
hide who owns them, and which are
often used by tax avoiders or those
wishing to hide dishonest gains
would be banned. Questionable
nominee directors would be also be
clamped down upon. These are
people who charge out their names
to companies as notional directors,
and who can thus hide the true
identity of the real company owners.
Hundreds of people hold more than
100 directorships across different UK
businesses. Some hold up to 1,000.
Broadly, improving transparency
around beneficial ownership can
have wide benefits. Not least, it
would support the fight against
terrorism, drug smugglers, corrupt
politicians, and money laundering
because opaque corporate structures
can be used to covertly move money
around the world. Moreover, Global
Witness, an anti-corruption charity,
estimated that having a public
registry of beneficial ownership
would save 30m a year in police
time alone, before other benefits like
making it easier to trace and recover
stolen assets are taken into account.
But the G8 only agreed to make the
information available to law
enforcement authorities and tax
inspectors. There are calls for the UK
government to make a public register
of beneficial ownership. This would
help transparency NGOs who
highlight corruption. It would help
accountants, lawyers and banks, who
could use it to aid their due diligence
procedures. And it would help
concerned customers interested in
the probity of businesses. But it
would also have privacy implications:
in the same way that you would not
want me looking at your bank
account, would you want me to see
what shares you own? Either way
whether the register is public or not
the government must ensure that
there is a robust system of
verification and enforcement in
place at Companies House to ensure
the information submitted is
accurate.
To attract business to Britain, we
must be known for integrity, as well
as keeping the cost of regulation
down. Having a more transparent
system of company ownership, less
helpful to those trying to hide things
from authorities, would be a good
start.
Anthony Browne is chief executive of the
British Bankers Association.
ANTHONY BROWNE
A transparent system of company ownership would attract business to the UK
In association with
OPEN FOR
Visit some of Scotlands nest golf courses. Flights to Edinburgh and Dundee
19
THURSDAY 18 JULY 2013
Taxes and benefits
[Re: Its nonsense to argue our tax and benefits
system hits the poorest hardest, Tuesday]
Ryan Bourne is right that taxes and benefits should
not be considered in isolation, but he should go
further. Our system is a mess. Politicians have
added numerous rules and exemptions, creating a
mish-mash that does not help the poor. People on
benefits can face marginal tax rates of up to 84 per
cent for earning more, a tragedy for those wishing
to better their position. That politicians have not
done enough to simplify our system is damning.
Mark Myrie
NHS accountability
[Re: Time to stop under-reacting to scandals in the
public sector, yesterday]
The author is spot on public sector executives get
away lightly compared to their private sector
counterparts. Buckinghamshire NHS Trust was
muted yesterday in response to the Keogh Report.
It released a short statement from the trusts chief
welcoming the report, but said nothing about
executive resignations or holding anyone to
account for the evident failings. Without full
accountability, things are unlikely to improve.
Joseph Jackson
As the OBR forecasts rising fiscal pressure due to
demographic change, is welfare unsustainable?
YES
Demographic change means the welfare state as we know it is completely
unaffordable for future generations. Of the current UK population of around
63m, 10m can expect to live to 100. Put differently, someone retiring in 2010
had a one in six chance of spending three decades in retirement. By 2035, the
odds will be one in four (taking into account current state pension age plans).
This has huge implications for government spending on health, social care,
state pensions and pensioner benefits. Meanwhile, the share of the
population of working age that funds this spending is shrinking. As the latest
Fiscal Sustainability Report shows, without action, UK government debt will
end up on an unsustainable upward trajectory because of this. The Office for
Budget Responsibilitys projections for the next 50 years show that net debt
would begin to rise from the early 2030s, reaching 99 per cent by 2062-63. By
this date, public sector net borrowing would be 5.8 per cent of GDP, equivalent
to around 3,400 per household in todays terms. Demographic change will
undo the hard work being done now to rescue the public finances. It is a
question of when, not if, the welfare state needs radical reform.
Kimberley Trewhitt is a senior researcher at the independent think tank
Reform.
Kimberley Trewhitt
NO
Jonathan Portes
As the UK gets richer and older, we will want to spend more money, public and
private, on healthcare and pensions. Can we afford that? The Office for Budget
Responsibilitys long-term fiscal sustainability report, published yesterday,
suggests the increased spending resulting from demographic changes will result
in a fiscal gap of 1.2 per cent of GDP; thats what wed need to cut spending or
raise taxes by to get the debt to GDP ratio down to 40 per cent over the next half
century, which seems sensible. Well, 1.2 per cent of GDP is much less than the fiscal
adjustment weve seen over the last three years alone. So its hardly unachievable.
The welfare state faces lots of challenges: how to translate technological change
into increased productivity in the health service; how to create a pension system
that incentivises saving and encourages individuals to provide for themselves,
while continuing the remarkable fall in pensioner poverty weve seen in the last 15
years; how to ensure more spending on the old doesnt crowd out investment in
young peoples education; and how to create the political support for the open
immigration system we need to boost growth and productivity. But theres
nothing in the numbers to suggest its fiscally unsustainable.
Jonathan Portes is director at the National Institute of Economic and Social
Research.
CORIN TAYLOR
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MUIRFIELD
CITYSAVER RETURN FARE INCLUDES ALL TAXES. Edinburgh fare stated correct as of 17July. Non-refundable, non-changeable. Subject to conditions and availability. from London City Airport. Fares from 99 rtn.
Good news as jobs in London up 102,000 (2 per
cent) in first quarter to 5.14m. Highest since the
series began. But unemployment is still too high.
@DrGerardLyons
Andy Burnham is back to dressing up any
suggestion the NHS underperformed as an attack
on the NHS workforce. Ludicrous man.
@DouglasCarswell
High taxes dont redistribute wealth; they
redistribute people.
@DanHannanMEP
BEST OF TWITTER
LETTERSto the editor
WE WANT TO HEAR YOUR VIEWS
E: theforum@cityam.com | Comment: cityam.com/forum | @cityamforum
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A
S THE deadline for submissions
to the Airports Commission
looms, weve seen a flurry of
proposals from all who stand to
benefit from one scheme or another to
increase capacity. For businesses who
simply want easier connections to high
growth markets, fewer delays, and less
burdensome flight taxes, it is tempting
to settle for any of them. With no new
runways around London for decades,
more capacity anywhere would make
a difference.
But not all schemes are equal. To start
with, weve seen several proposals for
non-hub solutions. Gatwick in particu-
lar has argued for a second runway
instead of Heathrow expansion, and
Birmingham airport has made the case
for a national network of airports.
Both miss the point. Birmingham
and other airports outside the South
East have spare capacity today, so noth-
ing is stopping them from developing
new routes and expanding traffic. And
while growing point-to-point demand
at Gatwick will probably need to be
met by a second runway, it wont offer
the same connectivity benefits as an
expansion of hub capacity.
The reason is simple. Many long haul
routes need feeder traffic to fill planes.
Without it, the routes arent viable. Its
why Heathrow has been full for the last
decade, while Stansted and many
regional airports have lain half empty.
So Boris Johnson is right that only a
four-runway hub can meet Londons
future aviation needs. But where that
hub airport is located is vitally impor-
tant. Closing Heathrow and expanding
Stansted, or building a new airport east
of London, would be a big mistake.
First, Stansted or a new airport would
take longer to get to for most
Londoners, especially after Crossrail
opens. For people outside London, it
would involve a long journey across the
capital or around the already-
congested M25.
Secondly, Heathrow expansion
would cost 14bn to 18bn for a third
runway, including surface access
improvements, and a further 8bn to
14bn for a fourth runway. An Isle of
Grain airport would cost 50bn more
than HS2 with an outer Thames estu-
ary hub costing even more. This would
mean high levels of taxpayer funding,
or high landing charges, or both.
Thirdly, in order to fill a new hub air-
port, and probably in order to finance
it, Heathrow would have to close. This
would devastate the economy of much
of west London and the Thames Valley,
leading to job losses comparable in
scale to when the east London docks
closed several decades ago.
The downside to Heathrow expan-
sion is noise, which is why quieter
planes, steeper descents, more dis-
persed arrivals paths, and periods of
respite will be vital. Heathrows own
proposals envisage a reduction in its
overall noise footprint, but there will
still be areas experiencing greater
noise levels than today. And thats why
proposals from Jock Lowe, the former
Concorde pilot, are useful. By length-
ening Heathrows runways and then
splitting each one in two, the airport
can double in size without needing to
expand north or south.
A bigger and quieter Heathrow may
sound like an oxymoron. But with
careful planning, it should not be
impossible.
Corin Taylor is a senior economic adviser at
the Institute of Directors. www.iod.com
Heathrow expansion is
our best option and it
doesnt have to be loud
21
TV & GAMES
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BBC1
SKY SPORTS 1
7pmPremiership Years 9pm
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5.30am-6amFootball Gold
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7pmSky Sports News at Seven
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Verdict 10pmThe Ashes 11pm
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Ashes 1amThe Ashes Verdict
2amThe Ashes 3amThe Ashes
Verdict 4amThe Ashes
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SKY SPORTS 3
7pmThe Sky Sports Years 8pm
Sporting Greats 8.30pmLadies
European Tour Golf 9pmLive
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IAAF Athletix 1amRingside 2am
PGA Tour Golf 5amSuper League
Superstars 5.30am-6amATP
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5.15pmAthletics 7.15pmLive
Womens European Championship
Football: France v England (Kick-
off 7.30pm). 9.30pmCycling: Tour
de France: Stage 18 from Gap to
Alpe-dHuez. 11pmCycling: The
Ride 11.30pm-12.30amShow
Jumping
ESPN
6.45pmESPN Kicks: MLS 7.15pm
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ESPN FC Press Pass 12am
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Nothing to Declare
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7pmUEFA Womens Euro 2013
10pmLive at the Electric
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Family Guy 11.45pmAmerican
Dad! 12.30amLive at the Electric
1amCuckoo 2amThe Best Dance
Film Ever! 2.30am-4amDiaries
of a Broken Mind
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmThe Big
Bang Theory 8.30pmHow I Met
Your Mother 9pmDont Trust the
B**** in Apartment 23 9.30pm
Suburgatory 10pmSkins: Pure
Part One 11.05pmThe IT Crowd
12.10amThe Big Bang Theory
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Show3.25amPete Versus Life
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9pmCounting Cars 10pmDuck
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7pmBirth Days 8pmHomes
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6pmBBC News
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of two. The claimants
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9amLive Golf: The Open
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Hilary Listers Round Britain
Dream:
12.20am Golf: The Open
Championship Highlights 1.05am
Sign Zone: South Africa: The
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2.05amSign Zone: Israel: Facing
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4am-6amBBC Learning Zone
6pmITV News London
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Following DI Kay Lancaster at
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9pmCHOICE The Briefs:
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10.35pmThe Zoo:
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3amPlan Bee: Tonight 3.25amITV
Nightscreen 5.05am-6amThe
Jeremy Kyle Show
6pmThe Simpsons:
6.30pmHollyoaks:
7pmChannel 4 News
7.55pmRamadan Diaries:
8pmSupersize vs Superskinny:
9pmFirst Dates:
10pmCHOICE Run:
10.55pm24 Hours in A&E:
12amPrincess Dianas Dresses:
The Auction
1amTerror in the Skies 1.55am
South Africas Dirty Cops: Channel
4 Dispatches 2.25amFood
Unwrapped 2.55amWild Things
3.30amPhil Spencer: Secret Agent
4.25amDeal or No Deal 5.20am
Kirsties Vintage Gems
5.25am-6.10amCountdown
6pmHome and Away:
6.30pmNewsTalk Live:
7pmCricket: The Ashes: 5
News Update
8pmCowboy Traders: 5 News
at 9
9pmThe Hotel Inspector
Returns:
10pmBig Brother:
11pmBig Brothers Bit on the
Side:
12amSuperCasino
4amHouseBusters 4.25amHouse
Doctor 4.45amHouse Doctor
5.10amMichaelas Wild Challenge
5.35am-6amMichaelas Wild
Challenge
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
10 11 16
15 6
45
17 12 8
9 15
11 30
8 4
5 10 13
45
23 33
6 10 9
39
21
23
12
3
4
20
12
14
35
34
13
7
11
15
12
27
38
9
22
ACROSS
3 Bright colour (7)
6 Make void (5)
7 Worry (7)
8 Fruit with sweet,
juicy esh (5)
9 Common, not
specic (7)
13 Source of
illumination (4)
16 Give a narcotic
to (4)
17 Canvas shoe
with a pliable
rubber sole (7)
19 Enter (data or a
program) into a
computer (5)
20 Young of a sow (7)
21 Creepy (5)
22 Erle Stanley ___,
writer of detective
novels featuring
Perry Mason (7)
DOWN
1 Warm-blooded
vertebrates which
suckle their young (7)
2 Arouse or excite
feelings and
passions (7)
3 Informal language (5)
4 Damaged
irreparably (6)
5 Catch in a snare (6)
10 River which runs
through Devon (3)
11 Childrens
playsuits (7)
12 Animal skin which
has been tanned (7)
14 Heart condition
marked by chest
pain (6)
15 Abnormally decient
in colour (6)
18 Vertical pipe in
a building (5)
R
E
U
A
D C
H
T
N

4

4


C R E A M O V O I D
O M O A F I I
M A C R O F E L O N
E E R U E E A
T R E S S R I D E R
Y O O A
D E B U G A N G R Y
R U R O W R E
A O R T A A G O R A
F M P H I A T
T R A C E T U N E S
6 3 1 8 5 7 2
8 2 5 7 9 4 6 3 1
9 8 3 4 2 1
3 1 7 7 1 2 8
8 3 8 7 3 9
1 4 5 2 3 2 1 5
3 8 9 1 6 9
7 9 5 3 4 9 3
8 4 1 2 7 1
4 1 9 7 8 3 5 6 2
9 3 6 4 9 8 7
4
4
4
4
4
4
4
4
4
The nine-letter words were
GERMANITE and GERMINATE
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
THURSDAY 18 JULY 2013
BRITAINS FAVOURITE
SUPERMARKET FOODS BBC1, 8PM
Cherry Healey explores the positive
health benefits of everyday foods,
beginning with the common staples
that could help people lose weight.
THE BRIEFS
ITV, 9PM
Return of the documentary following
lawyers from a Manchester-based firm
representing a range of clients. Peter
Egan narrates.
RUN
CHANNEL4, 10PM
A Polish cleaner living in London
discovers her gambling addict
boyfriend has been killed in a vicious
attack. Starring Katharina Schuttler.
TVPICK
THURSDAY 18 JULY 2013
22
cityam.com
LIFE&STYLETECHNOLOGY
REVIEW
Appy days App Store at 5
Alex Dymoke looks back at the five year history of Apples revolutionary online shop
The latest
generation of
MacBook Airs
Apple has a new MacBook Air
and it looks... just like the old
one. But there is more going on
than meets the eye. Here is the
lowdown on how Apple just
made the best laptop on the
market even better, says Steve
Dinneen.
Battery life | If this was the
only change in the new
generation MacBook Air, it
would still be enough to justify
a positive review. Apple says it
has finally wrestled all day
battery life from its flagship
laptop, with the 13 inch
version staying charged for a
whopping 12 hours, and its
nine inch sibling lasting for
nine hours. Real world figures
will vary (and only in one
direction clue: not up) but
this is a pretty astonishing feat
nonetheless. There is more
good news, too: the upcoming
version of Apples operating
system, OS X Maverick (the
first in a decade not named
after a big cat) claims to
improve battery life even
further.
T
HE app was unleashed on the
world with a typically smart
advertising campaign from
Apple. A niggling problem in
your daily life? There is, they assured
us, an app for that. A what for what?
was the reaction from most people
(including myself) after seeing the
advert for the first time. We soon
cottoned on, though, and now, five
years since the launch of the App
Store, and 50bn app downloads later,
its difficult to imagine a world
without those little downloadable
programs.
When the App Store launched, the
iPhone had been around for a year,
with buyers only able to make use of a
few pre-loaded apps including YouTube
and Google Maps. Steve Jobs explained
that the Store turned the iPhone into
an expanding universe of limitless
possibility. It launched in 2008 with
500 apps now there are 850,000.
Experts claim the App Stores five
year anniversary is more important
than the recent sixth birthday of the
iPhone, as it sparked an entire
industry of large and small web
developers all competing to produce
the next killer app. Apple takes 30 per
cent of the revenue generated by
independently developed apps. Thats
a big slice of the pie for the tech giant,
but the number of app millionaires
continues to rise. The latest to make
the headlines was 17 year old South
Londoner Nick DAloisio, who sold
Summly an information
summarising app that he worked on in
his bedroom to Yahoo! for $30m
(20m). As hobbies go, you cant get
much more lucrative than that. Heres
to the next five years.
2
0
0
8
2008
2
0
0
8
2010
2012
2009
2011
2013
FEBRUARY 12
The App Store features
Angry Birds and the
popular games
download rate increases
by 50 times
JUNE 7 JANUARY 22 APRIL 3
Global app
downloads top
500m
JANUARY 16
Worldwide app
downloads top
1 billion
APRIL 4
Doodle Jump launches on the
App Store and the franchise goes
on to surpass $10mon iOS
APRIL 6
Netflix debuts on the
App Store
iPad goes on
sale with many
more apps
available for
the new
format
$1 billion
paid out to developers
to date
850,000
apps available
350,000
native to iPad
App Store downloads top
10 billion
MAY 16
App Store downloads surpass
500 billion
over 800 per second
JULY 21
App Store expands to
23 countries
JULY 14
The App Store launches and
10m apps are downloaded in the
first weekend
New chips | The latest
MacBook Air boasts Intels
latest Haswell chips, which
Apple says run up to 45 per
cent faster than the previous
generation. In real life, you
dont notice a massive
difference if youre just
browsing the web and Skyping
your mother but the odd half a
second here and there all adds
up if youre a heavy user.
Microphone | The only
physical difference in this latest
generation Air is the addition
of a second microphone on the
left-hand edge, which is
supposed to help with noise
reduction when youre making
video calls.
Storage | Flash storage has
doubled on the latest model
from 64GB to 128GB.
What it didnt have | I would
love to have seen a retina
display like the one on its big
brother the MacBook Pro
(presumably not included to
conserve battery life and size).
The new MacBook Air range starts
at 849; store.apple.com/uk
24
THEPUNTER
CRICKET TRADER
cityam.com
THURSDAY 18 JULY 2013
Back Pietersen to be thorn in side of Aussie bowlers
KEVIN Pietersen will have mixed emo-
tions about his Test match debut
against Australia at Lords back in the
heady and historic summer of 2005.
It was all going swimmingly when
Steve Harmison ran through the
tourists, taking 5-43 and restricting
them to just 190 on day one.
But when Glenn McGrath skittled
England for an even less convincing
155 it heralded an unlikely 239-run
away win. And yet if anyone defied the
Aussies, and set the tone for a series
England eventually won, it was the
Pietermaritzburg-born peacock with
the outrageous plumage.
The haircut may be more conservative
these days, but KP has regularly
troubled Australia since his flamboyant
158 at the Oval in September that year.
He recorded his ninth Test fifty
against them in Nottingham last
week and I fully expect him to per-
form at Lords too.
In Alastair Cook and Jonathan Trott
England have two remorseless compil-
ers of runs who can grind out a win
through force of will.
But in Pietersen they have a rare
individual with the ability to demor-
alise the opposition through auda-
cious shot selection. Sporting Index
have set his total match runs at 81-87,
lower only than Cook and Trott, and
at that price Im happy to buy.
Im also tempted by Paddy Powers
4/1 about him being Englands top
run-scorer, assuming his 64 at Trent
Bridge is an aperitif to an even
sweeter second course.
His average in Tests at Lords is
61.40, rising to 65.66 against the
Aussies, and I see no reason why that
wont continue.
Brad Haddin and Ashton Agar led
the way for Australia last time in the
most unlikely of circumstances, hit-
ting 179 of the teams 280 first
innings runs between them.
But in his carefully-compiled 52,
Chris Rogers sent a message to
England and successive selectors
whod handed him just one cap
before then.
He has been in fine form on this
ground already this season, hitting a
double century for Middlesex against
Surrey and 184 against Sussex.
Rogers also holds the rare distinction
of a double century against Australia
for Leicestershire in 2005, despite
being urged to fall on his sword by
Matthew Hayden. With defiance like
that he is worth backing at 6/1 with
Coral to be top Australia batsman. Ill
also be a buyer of his match runs too,
with Sporting Index at 64.
All batsmen have the ability to let you
down, but these two do so less than most.
T
HE second Investec Ashes Test,
which begins today, has a lot to
live up to if it is to match the
drama we witnessed at Trent
Bridge last week.
England prevailed but by the nar-
rowest of margins after an
enthralling five days, thanks largely to
the second innings stubbornness of
Ian Bell and inspired bowling of
Jimmy Anderson.
That they did so by only 14 runs cer-
tainly disproved theories that this par-
ticular renewal of old rivalries would
be one-sided.
Yet I suspect the closeness of the
result had more to do with England
under-performing with the bat than it
did to the brilliance of their oppo-
nents. As a result, Im happy to back
them again particularly at even
money with Coral despite the
admirable record of the Australians at
Lords. Remarkably, the tourists have
suffered just one reversal in Test crick-
et on the ground since 1934.
That was on their last visit in 2009
and, with some of the same personnel
still involved, I envisage similar
heartache ahead for Clarke and Co.
England have also got a good record
here. In the last 10 Tests nine have pro-
duced a winner, and on eight of those
occasions it was the hosts who took
the honours.
Given that the weather is set fair
again, I think we can rule out the
draw. In fact, if Anderson achieves the
same amount of swing, be it orthodox
or reverse, we can rule it out for that
reason alone.
Yet in all the triumphant celebra-
tions which greeted the climax of the
first Test, we shouldnt lose sight of
the fact that the world record No11
score has now been set in successive
summers against this England attack.
There is absolutely no room for com-
placency.
I backed FTI Most Valuable Player
leader Anderson to be top England
bowler in Nottingham and would
have no hesitation in doing so again,
even though hes pretty short at 7/4
with Coral.
Having said that, I wonder if it is
worth investing in Steven Finn at
more than double that price across
the board, assuming he gets the nod.
He was the one disappointment
among David Sakers charges last time
out, bowling too short and with too lit-
tle guile when called upon.
His confidence has also been ques-
tioned despite being one of Englands
most consistent performers on the
tours of India and New Zealand this
winter.
Yet his record on his home ground is
far better than elsewhere and he
should now know how to get the most
out of the famous slope.
Before backing him it is worth
checking with your bookmaker that
theyll refund your stake if he is
replaced. If so, it is a bet to nothing.
Theres also an assumption that this
game will go to the wire again. But
given the nature of modern Test crick-
et, Im tempted to have a dart on it fin-
ishing on days one, two or three at
49/6 in Betfairs market, covering
myself with savers on the morning
and afternoon of day four at 143/10
and 9/1 respectively.
If England put the peddle down
they can leave this lot behind.
nPointers
England at evens with Coral
Steve Finn to be Englands top first innings bowler at 4/1
with Coral
Second Test to finish on days one, two or three at 49/6
on Betfair
Alastair Cooks men can take inspiration from 2009 victory at the home of cricket
England to triumph
at Lords despite
Australias record
ROBIN HUTCHISON PREVIEWS THE SECOND INVESTEC ASHES TEST
nPointers
Buy Kevin Pietersen match runs at 87 on Sporting Index
Chris Rogers to be top Australias top first innings
run-scorer at 6/1 with Coral
25 SPORT
cityam.com/sport
THURSDAY 18 JULY 2013
ENGLAND captain Alastair Cook
knows he faces a tough selection
dilemma against Australia today, but
insists he will not let emotion get in
the way of picking an attack capable
of bowling his team into a 2-0 Ashes
lead at Lords.
Following a narrow 14-run victory in
last weeks first Test, Cook is weighing
up whether to name an unchanged
team that includes fast bowler Steven
Finn, who endured a mediocre match
at Trent Bridge, or opt to draft in
either Tim Bresnan or Graham Onions
as a replacement.
Middlesex man Finn boasts 29 dis-
missals in Test matches at Lords, com-
pared with Onions 10 and just five for
Bresnan. However, Cook insists there
are several factors which will deter-
mine selection and he is prepared to
be ruthless for the good of the team.
You want players confident theyre
going to get a good run. But on the
other hand you always pick a side you
think can win the Test and you do
have to make tough decisions, said
the 28-year-old.
Id love to say the guys who play
Bowlers left to
sweat by Cook
for Ashes place
BY JOSH RICHARDS
under me feel theyve got my backing
but you do have to take tough deci-
sions for the good of the side.
You need to look at the best bal-
anced attack in the conditions avail-
able. We all know that you need 20
wickets to win a Test match.
Sometimes there are different ways of
going about that.
Australia, who boast just four players
in their squad with previous Test
match experience at Lords, have no
fresh injury worries.
However, captain Michael Clarke
may opt to shake up his bowling
attack, with Jackson Bird a potential
replacement for Mitchell Starc, who
was expensive at Trent Bridge, while
Usman Kawaja could replace Ed
Cowan, after the top-order batsman
scored just 14 runs in two innings.
At FTI Consulting, its our job to
make knowledge make sense,
transforming millions of facts into
insights that help our clients take
action. Its the same with cricket.
Our analysis of the Most Valuable
Player rankings supports the
coaching strategies of the world
class England team. More critical
thinking for these critical times.
www.fticonsulting.com
Theres no
such thing as
too much
information
Results
CRICKET
FRIENDS LIFE T20 - MIDLANDS GROUPNorthampton:
Northamptonshire 150-8 (S P Crook 63). Somerset 140-8.
Northamptonshire (2pts) beat Somerset by 10 runs.
LV COUNTY CHAMPIONSHIP - FIRST DIVISION
Chesterfield: Yorkshire 367-2 (98.0 overs; A Z Lees 171no,
P A Jaques 139) v Derbyshire. Hove: Sussex 229 (80.2
overs; E C Joyce 101). Middlesex 44-0 (13 overs).
Edgbaston: Warwickshire 463 (154.3 overs; L J Evans 178)
and 180-6dec. (44 overs; C R Woakes 60, R Clarke 54no).
Notts 217 (73.1 overs; J W A Taylor 80, M J Lumb 51; J S
Patel 4-60) and 38-0 (11 overs).
SECOND DIVISIONChelmsford: Leics 328-4 (96 overs; E
J Eckersley 133no, N J OBrien 51) v Essex. Cheltenham:
Worcs 182 (71 overs; J Leach 82no, G M Andrew 54; J K
Fuller 5-43). Gloucs 83-0 (23 overs; C D J Dent 56no).
Canterbury: Hampshire 405-9dec. (134.2 overs; M A
Carberry 154, L A Dawson 75, S M Ervine 72). and 15-0 (7
overs) Kent 513 (141.2 overs; R W T Key 180, B P Nash 126, D
J Bell-Drummond 79). Emirates Old Trafford: Glamorgan
474 (150.1 overs; M W Goodwin 194, J Allenby 92, G P Rees
58; S C Kerrigan 7-162). Lancs 423-5 (136 overs; S M Katich
115, A G Prince 113.
CYCLING
TOUR DE FRANCEStage 17 (Embrun - Chorges (ITT),
32km): 1 C Froome (Gbr) Sky Procycling 51mins 33secs, 2 A
Contador Velasco (Spa) Team Saxo-Tinkoff at 9secs. Overall:
1 Froome 66hrs 07mins 09secs, 2 Contador at 4mins 34secs.
FOOTBALL
CHAMPIONS LEAGUE2nd Qualifying rnd, 1st leg:
Cliftonville 0 Celtic 3 (Lustig 25, Samaras 31, Forrest 84; Att
5,000)-Sligo 0 Molde 1 (Chukwa 42)-The New Saints FC 1
(Fraughan 11) Legia Warsaw 3 (Kucharczyk 47, Saganowski
57, Kosecki 74; Att 2,925).
City set to sign 20m Negredo
nFOOTBALL: Manchester City have agreed a
20m deal to sign Sevilla and Spain striker
Alvaro Negredo, subject to a medical. The
28-year-old, who also interested Tottenham
and West Ham, is set to become Citys third
signing of the summer.
Cardiff lands club finals double
n RUGBY UNION: Cardiff has been awarded
both of European club rugbys major finals
for next season. The Millennium Stadium
will host the Heineken Cup final on 24 May,
with the final of the Amlin Challenge Cup at
Cardiff Arms Park the night before.
Toomey out of intensive care
n HORSE RACING: Jockey Brian Toomey has
been moved out of intensive care following
his fall at Perth last week. The 24-year-old,
who last week had surgery to reduce
swelling on his brain, has been placed in a
high-dependency unit at a Dundee hospital.
Gunners hit seven in Vietnam
n FOOTBALL: France forward Olivier Giroud
scored a hat-trick as Arsenal continued their
pre-season tour of Asia with a 7-1 friendly
win over Vietnams national team.
IN BRIEF
Ecclestone lawyers hit back at bribery charge
CLARKE TIGHT-LIPPED ON WATSON FEUD CLAIMS
LAWYERS for Formula One boss
Bernie Ecclestone believe that lack of
evidence of a crucial meeting could
undermine a bribery case against
him by German authorities.
German prosecutors yesterday
charged Ecclestone, 82, with bribery
in connection with F1s $1.7bn
(1.2bn) sale to its current owner,
private equity firm CVC, in 2006.
Ecclestone is accused of paying a
$44m (28.9m) bribe to Gerhard
Gribkowsky, former chief risk officer
for German bank BayernLB, which
owned a 47.2 per cent stake in F1.
Prosecutors say Ecclestone paid the
money to steer F1 to CVC, which had
agreed to retain him as the sports
boss but may not have been the
highest bidders.
Ecclestone denies the payment was
a bribe and says Gribkowsky had
threatened to make false allegations
about his tax affairs unless he paid.
Gribkowsky was jailed for eight
and a half years last year and a judge
now has five weeks to decide whether
to bring Ecclestone to trial.
Ecclestones lawyers plan to argue
that Gribkowsky lacks credibility as a
witness as he has been convicted and
has changed his testimony.
They also dispute Gribkowskys
claim, made in court, that Ecclestone
offered to employ him as a
consultant if he helped to sell F1.
Ecclestones lawyer Sven Thomas told
City A.M.: In his witness statement
Gribkowsky described a meeting in
April or May 2005 when Bernie said I
will take care of you. We cannot find
the records of this. Weve checked all
possible meetings and covered the
next months too.
Ecclestone says his position is not
in danger and a source close to CVC
says it could have asked Bernie to
leave any time in the past three years
but havent because we support him.
EXCLUSIVE
BY CHRISTIAN SYLT
AUSTRALIA captain Michael Clarke refused to discuss claims of a feud with all-rounder
Shane Watson yesterday, ahead of todays second Ashes Test. Ive spoken a lot in the
past about my relationship with Shane and so has Shane, so Im not going to go into that,
said Clarke. This will not be a distraction to me or the team. The allegations stem from
sacked coach Mickey Arthurs 2.4m compensation claim against Cricket Australia.
THURSDAY 18 JULY 2013
26
SPORT
cityam.com/sport @cityam_sport
THE BETFAIR WEEKENDs
DAY
Relax, enjoy and indulge in a fabulous
summer garden party and world-class racing
at the height of the summer season.
Saturday 27th July
Tickets from 21 per person
Fine dining from 144 per person
ascot.co.uk 0844 346 3000
Sponsored by:
Exclusive: Ecclestone lawyers
say no evidence of bribery
Formula One: Page 26
SPORT
CHELSEA manager Jose Mourinho has
declared forward Wayne Rooney is the
only player he is interested in luring to
Stamford Bridge this summer.
The Blues lodged an official bid for
the England star yesterday and insist
none of their own first team players
were offered in exchange, after it was
suggested midfielder Juan Mata or
defender David Luiz could make way
as part of any potential deal.
And Mourinho, who oversaw
Chelseas 1-0 win against Singha All-
Stars in Bangkok yesterday, is deter-
mined to get his man, confirming no
bids have been made for other players.
No, and we wont, he said. Chelsea
is interested in the player, Chelsea
made an official bid.
The club [United] knows we want
the player, the player has to know we
made a bid for him. Now its up to Man
United and we respect their decision.
So from now I dont say one more
word about Wayne Rooney.
Chelsea released a statement an
hour before kick-off in Thailand,
adamant that none of their players
would be moving to Old Trafford, con-
trary to rumours they attributed to
the Manchester United camp, current-
ly in Australia on the latest leg of their
pre-season tour.
Reds executive vice-chairman Ed
BY JOSH RICHARDS
Woodward yesterday abandoned the
trip and flew home though not,
United say, in order to thrash out any
potential deal for Rooney.
And Mourinho is adamant his club is
behaving ethically in their pursuit
of the unsettled 27-year-old.
What we did, we did officially
between our club and Man United,
added the Portuguese boss.
The official bid is a certain amount
of money, it doesnt involve any play-
ers. There are none involved in the
deal. Not Juan Mata, not David Luiz.
We did what we had to do in a prop-
er way, in an ethical way, and were
happy with our behaviour.
BRITAINS Chris Froome last night
toasted a tactical masterstroke after a
change of bike midway through
yesterdays time trial earned him the
stage win and propelled him closer to
Tour de France glory.
Froome increased his lead on main
yellow jersey rival Alberto Contador
by nine seconds to four minutes, 34
seconds with just four stages
remaining by winning his third stage
of this years Tour.
The Team Sky rider had trailed the
Spanish two-time Tour winner, who
he accused of riding dangerously on
Tuesday, by 20 seconds at one point,
but overhauled Contador after
swapping his road bike for a time
trial model.
It could have made the difference.
I felt when I rode the course this
morning that I needed the bigger
gear and so it paid off, said Froome.
Victory made the Kenya-born
28-year-old only the second Briton to
win more than two stages in one year,
after former Team Sky colleague
Mark Cavendish. Froome also won at
Ax 3 Domaines and Mont Ventoux,
meaning he also leads the king of the
mountains standings.
I cant believe it, he added. Three
stage wins, the yellow jersey and the
polka dot jersey this Tour has been
incredible for me so far. It rained a bit
for my second descent and I was
prepared to concede time and not
take risks, so it was a surprise to win.
Froome, who finished second
behind absent team-mate Sir Bradley
Wiggins last year and looks set to
clinch his first Tour title in Paris on
Sunday, completed the time trial in
51 minutes, 33 seconds.
Katusha rider Joaquim Rodriguez
was third fastest, 10 seconds behind
Froome and one adrift of Contador,
while Belkins Bauke Mollema, who
began the day second overall, lost
more than two minutes.
Froome closes in
on Tour victory
with stage win
BY FRANK DALLERES
Its Rooney or
nothing for us
this summer,
says Mourinho
Eric Cantona
nMan Utd poached the French forward
from Leeds for just 1.2m in 1992. He went
on to help them win four league titles.
Ashley Cole
nSwapped Arsenal for Chelsea in 2006, for
5m plus defender William Gallas. Has won
six domestic and two European honours.
Carlos Tevez
nMoved across Manchester from United to
City in 2009. Won the league title in 2012.
RIVALS DO BUSINESS
Chelsea have
made an offer for
Wayne Rooney
27
THURSDAY 18 JULY 2013
GOLF
COMMENT
SAM TORRANCE
A
GLANCE through the list of
winners at previous Opens
held at Muirfield shows that
this course is one that tends
to reward only the very best players,
and that is reflected in my tips for
this years championship.
Last months US Open triumph at
Merion constituted a huge
breakthrough for Justin Rose, and I
have never seen the Englishman
look as happy as he did after
landing that first Major of his
career.
This week he has a great chance
of making it back-to-back Majors.
Rose has shown that he can now
hold his nerve on the biggest
occasions and the Muirfield course
should suit his game beautifully.
My second tip may not have
played since the US Open, where he
was only tied for 32nd, because of a
nagging elbow injury, but he is
Tiger Woods and I would certainly
not discount him.
Woods is a master of plotting his
way around a golf course, as the 14-
time Major winner demonstrated
to great effect when he won his
last Open title at Hoylake seven
years ago.
Muirfield is another course that
lends itself to such strategic
manoeuvres Nick Faldo won
here in 1987 by making par at
every single hole of his final
round so it could be ideal for
Woods.
It may well also suit Lee
Westwood. Its a great course for
great golfers, and he certainly is
one. The Englishman has had
seven top-three finishes in Majors
without winning one, so he could
be due one.
Beyond those three, Graeme
McDowells recent form has
veered from the sublime to the
ridiculous and back again, but
three wins in seven events speak
In association with Glenmorangie,
the spirit of the Open Championships
Rose can make it consecutive Majors
Muirfield 2013
Spirit of The Open
Please savour responsibly drinkaware.co.uk
The Spirit of the Open Championship www.glenmorangie.com/golf
volumes for just how well he can
play. If the wind picks it up it could
play right into the Northern
Irishmans hands.
Nobodys form is hotter than Phil
Mickelsons right now, with the
American having won last weeks
Scottish Open and finished tied for
second at the US Open, though Im
not sure this is the course for him.
Muirfield is ideal for Rory
McIlroy, on the other hand, though
the former world No1 has just not
shown any form. From a betting
point of view, hes available for
28-1, and that certainly looks value.
Lastly, keep an eye out for
American rising star Brooks
Koepka. The 23-year-old has won
three Challenge Tour events already
this year, was tied 12th on his
European Tour debut at the
Scottish Open and, ability wise, Im
told he has got the lot.
Sam Torrance OBE is a multiple Ryder
Cup-winning golfer and media
commentator. Follow him on Twitter
@torrancesam
ROBERT TRENT JONES, JR
ON COURSE DESIGN
The design process is
similar to the way in
which a great
composer creates a
symphony. A great
course possesses
an overall mood of
rhythm that
engenders feelings of
anticipation mixed
with nostalgia.
Golf is such an intriguing
sport. It has the ability to
throw up the most
unexpected but wonderful
stories. Its also the cruellest
of sports, but thats its
ultimate appeal the mix of
emotions in a matter of yards
and seconds.
DAVID CANNON
ON THE MEMORIES GOLF CREATES
Winning my Majors gave me great
thrills and being captain for the
first Ryder Cup win on American
soil was a supreme moment. But
one of my greatest moments dates
from when I was a kid. I was self-
taught and spent hundreds of
hours hitting balls and working on
my game, and to keep focused I
imagined the likes of Ben Hogan
and Sam Snead watching my every
shot and asking myself what they
would say. Then in 1970 I had the
opportunity to play a practice
round ahead of the PGA
Championship in Tulsa
with Ben Hogan.
And I took five
dollars off him!
So that was a
special time
moment
for
me.
TONY JACKLIN
ON MY FONDEST
MEMORIES OF GOLF
Now its up to Man United
and we respect their decision

I cant believe it. The Tour has

been incredible for me so far
Jose Mourinho confirms Chelseas bid for Wayne Rooney
cityam.com
W
AYNE Rooney should be
staying at Manchester
United until the end of
his career. I think a move
to Chelsea would be nothing more
than a short-term morale boost.
Hes currently at the biggest
club in Britain, if not the world.
Why would he want to go
somewhere else? I dont get it.
I think there is still a future for
him at Old Trafford, and if I was
advising him I would tell him to
get on and play for United, but
perhaps David Moyes sees a
stronger team without him
playing that often.
I dont think Rooney would gain
anything from moving to another
Premier League club though.
As someone whos spent time at
Marseille, I would say go abroad,
test yourself, go and see
something different. But I cant
see Real Madrid, Barcelona or
Bayern Munich queuing up to sign
him. If hed scored 45 goals last
season they might have been in
for him. Hes not coming off the
back of a great season, hes not
shown the individual brilliance to
catch the eye that someone like
Neymar has, for example.
At the end of last season he
looked like he was in a bad mood
because he wasnt playing in the
position that he wanted to be
playing in. He didnt look like he
was enjoying himself.
But players of his quality dont
have two bad seasons in a row. Id
expect him to step up his game,
especially in a World Cup year.
I would think Chelsea would
have to pay 25m to 30m to get
him and it looks like theyre
prepared to do that.
They need someone who is
going to score and create goals, a
Luis Suarez type of player, because
they dont really have that.
You need four strikers at a club,
so I dont think signing Rooney
would mean the end for Fernando
Torres, Demba Ba or Romelu
Lukaku. Sir Alex Ferguson had
four at Manchester United and
enjoyed plenty of success.
Trevor Steven is a former England
footballer and now works as a media
commentator.
OFF-FORM world No2 Rory McIlroy
has reacted angrily to advice from
six-time Major winner Sir Nick Faldo,
urging the Northern Irishman to
improve his focus with the Open set
to begin at Muirfield today.
Faldo suggested on Tuesday that
too many distractions off the course
had contributed to a string of poor
performances on the course for
McIlroy, who has missed the cut
twice in the last four tournaments
he has entered.
However, the 24-year-old believes
Faldo, 55, is experienced enough to
know better.
He said I should be on the course
nine to five. I actually was on the
range at 6.15am and got out of the
gym at 6.15pm, said McIlroy, who
tees off alongside Japans Hideki
Matsuyama and 2011 Open runner-
up Phil Mickelson this morning.
Nick should know how hard this
game is at times.
Hes been in our position before
and he should know how much work
that we all do put into it.
I havent had the best six months,
but its ok, Im fine, Ive got a good
life. Im working hard on the right
things and sooner of later it will turn
around and Ill be back lifting
trophies.
BY JOSH RICHARDS
Below par McIlroy tells Faldo: You should know better
FOOTBALL
COMMENT
TREVOR STEVEN
Chelsea wont
suit Wayne in
the long term

Chris Froome leads the Tour de France