Professional Documents
Culture Documents
Business secretary Vince Cable said the plan was a creative idea that we should certainly be looking at Picture: Rex
THE Treasury is being urged to consid-
er a radical new scheme that would
see it hand government cash to banks
so they can lend it to small firms, City
A.M. has learned.
The plan, which has been raised in
meetings between government minis-
ters and bankers, has sparked the
interest of Vince Cable as well as back-
ing from newer, smaller banks who
are keen to get a foothold in the mar-
ket.
If the government pursues the
scheme, it could see hundreds of mil-
lions in taxpayer cash deposited in
small-time banks and loaned to strug-
gling small and medium-sized enter-
prises (SMEs) at below current market
prices.
It comes as Chancellor George
Osborne struggles to find ways to stim-
ulate the economy. His lending deal
with banks, Project Merlin, has had
mixed success due to ongoing econom-
ic turmoil.
Under the new plan being presented
to the government, the Treasury
would redirect some of the cash it
deposits in the Bank of England and
larger lenders into either loans or
deposits for newer, smaller banks. The
small-time lenders would then com-
mit to lending that cash onwards only
to SMEs.
Business secretary Vince Cable told
City A.M. that it was a creative idea
that we should certainly look at,
www.cityam.com FREE
BLACKBERRY
BLUNDERS
OUR READER
PANEL ASSESSES
THE DAMAGE P12
BUSINESS WITH PERSONALITY
adding that he would be examining
the proposal.
Aldermore Bank, a small bank set
up in 2009, is making a bid to get
between $75m (47m) and $100m of
Treasury cash deposited per month as
part of the scheme.
Chief executive Phillip Monks said
that the money could be loaned out at
below current market rates: If [get-
ting] the government deposits were
cheaper than retail deposits, we would
pass that advantage on to SMEs.
Philip George, co-managing director
of Shawbrook Bank, a small-time
lender that relaunched today, also sup-
ports it: We have had our own discus-
sions about it... The government wants
to get money into SMEs and we would
be keen to do that, he said.
Metro Bank chief Craig Donaldson
also said his bank would certainly be
on board to participate.
Recently, Osborne unveiled a credit
easing scheme to buy up private debt
with the aim of creating a market in
small business bonds. But the policy is
not likely to have an impact for three-
to-five years. Channelling government
cash into SMEs through banks, by con-
trast, could feed it through much
sooner.
It would likely prove controversial,
however, because it would see taxpay-
ers money put into potentially high-
risk loans. If SMEs began to default at
higher rates, government finances
could be hit.
It is understood that the proposal
was discussed a month ago at a closed-
door meeting between bankers, Cable
and Treasury secretary Mark Hoban.
It was greeted with a high level of
support from the chief executives,
said a source who attended the meet-
ing. Those present were left believing
that follow-up meetings are likely to
be held on the matter. BANKS: P7
Issue 1,490 Monday 17 October 2011
Certified Distribution
29/08/11 till 02/10/11 is 98,447
BY JULIET SAMUEL
EXCLUSIVE
TREASURY URGED TO
BACK SMALL BANKS
ACTIVISTS PITCH TENTS
OUTSIDE ST PAULS
WALL ST PROTESTS SPREAD P5
News
2 CITYA.M. 17 OCTOBER 2011
Trichet: Dissenters
damage EU progress
SLOVAKIA and other small countries
must never again be allowed to defy
the will of the European
Commission on crucial financial ini-
tiatives, Jean-Claude Trichet, outgo-
ing president of the European
Central Bank (ECB), said yesterday,
preparing the way for yet another
power grab by Brussels bureaucrats.
It is necessary to change the
treaty to prevent one member state
from straying and creating problems
for all the others, he told French
radio Europe 1. One needs to be able
to impose decisions.
As well as lamenting the lack of
political federation which meant
every Eurozone country had to indi-
vidually approve the expanded
European Financial Stability Fund
(EFSF), Trichet (pictured right)
also attacked countries
including Greece for failing
to comply with previous
agreements.
I think that the lesson
of the cost of negli-
gence, of the cost
of lax manage-
ment is sufficient-
ly potent that in
future the rules -
which have also
just been rein-
forced will be
f o l l o w e d
much more
strictly, he
said.
Trichet, who
steps down at
the end of this
month, made
the comments the day after G20
finance ministers called on
Eurozone leaders to draw up a
decisive plan to deal with the on-
going sovereign debt crisis.
Last week saw the possibility
of the EFSFs extension
being vetoed by
Slovakias parliament
though the measure
found approval at a
second vote, bringing
down the govern-
ment in the process.
Other countries
most notably
Greece, but also
others including
Italy and even
Germany have
long ignored
budget deficit
limits.
BY TIM WALLACE
EUROZONE
MINING
News
3 CITYA.M. 17 OCTOBER 2011
ANALYSIS l UK Dividends
50
55
60
65
70
45
40
2007 2008 2009 2010 2011 e
b
n
ANALYSIS l Growth in quarterly dividends
-10%
-5%
0
5%
10%
15%
25%
20%
30%
-20%
-15%
-30%
-25%
Q108Q208Q308Q408Q109Q209Q309Q409 Q110 Q210 Q111 Q211 Q311 Q310Q410
PROTESTERS vowed to occupy the
City indefinitely as they vented their
anger at bankers and politicians over
the global economic crisis.
Around 250 campaigners remained
pitched outside St Pauls Cathedral
for a second day yesterday after police
thwarted their attempts to take over
the area outside the London Stock
Exchange.
They said they were inspired by an
array of causes including the quest
for global justice, the failures of
financial regulation, opposition to
the coalitions NHS reforms and a
desire to show solidarity with the
Occupy Wall Street movement. One
invoked the spirit of the Egyptian rev-
olution by fixing a sign to a pillar
opposite St Pauls saying Tahrir
Square, EC4M.
Tom, 33, a philosophy lecturer who
declined to give his surname, told City
A.M. that a core of activists would stay
as long as possible. Some, however,
like software developer Gavin
Meredith, 25, said they planned to
leave the protest later yesterday in
order to go to work today.
The police presence was scaled
down after the Rev Dr Giles Fraser,
the canon chancellor of St Pauls,
asked officers to move off the steps of
the cathedral. He said: I think people
have a right to protest, and Im very
happy that people have a right to
protest. And people are being general-
ly respectful.
Worshippers at St Pauls stepped
around the camp as they made their
way into the cathedral. Jill Hooper, 67,
said the protestors were not unruly
but theirs aims were unclear.
I dont think it is effective if I
came in and out of church not know-
ing what it is for.
At its height on Saturday the
protest attracted 3,000 people, accord-
ing to organisers, and included
Wikileaks founder Julian Assange
and gay rights activist Peter Tatchell.
One service at St Pauls was cancelled.
Over the weekend eight people
were arrested on suspicion of affray,
assault on a police officer and posses-
sion of cannabis. Activists claimed
they had been kettled and a police
spokesman said a containment was
in place for two hours on Saturday.
Rallies also took place in more than
80 nations in Asia, Europe and the US
as part of a day of rage. They
reached their height in Rome where
masked Black Bloc protesters torched
cars, attacked banks and hurled
rocks. They were condemned with-
out reservation by prime minister
Silvio Berlusconi but Italians asked
why police made only 12 arrests.
Activists vow
to stay in City
indefinitely
BY PETER EDWARDS
POLITICS
News
5 CITYA.M. 17 OCTOBER 2011
Protesters outside St Pauls yesterday Picture: Reuters
Protests took
place in more
than 80 cities
including
Rome, left, and
New York
Pictures: Reuters
NBNK Investments, headed by chief
executive Gary Hoffman, has
approached the board of Northern
Rock about making a bid for the bank,
which Hoffman used to run.
The board and UKFI, the state
agency that manages the gov-
ernments investment in the
Rock, have given Hoffman per-
mission to join the first round
of bidding despite NBNK hav-
ing been formally barred
from doing so until
November.
Hoffman had been
banned because it was
judged that his familiarity
with the assets could give
him a big advantage over
other bidders.
But City A.M. revealed
in August that NBNK
was nonetheless look-
ing at tabling a bid
because the auction
was running behind
schedule (see inset).
UKFIs decision
means that Hoffman does not have to
wait an extra week and can make an
offer before the end of the month.
The move will see NBNK become an
interloper in what had been a re-run of
the 2007 bidding war between JC
Flowers and Virgin Money, which both
tried to buy the Rock before the crisis.
Both Virgin and JC Flowers are
mulling bids that are likely to be
around 850m far below the
Rocks start-up equity
of 1.4bn, injected by
taxpayers.
UKFI and Northern
Rock believe that
NBNKs arrival on the
scene is in the best
interests of the UK tax-
payer because it makes
the sale more competi-
tive, said a source familiar
with the deal.
Snapping up the Rock
could make sense for NBNK
because it would give
Hoffman an IT platform and
a large surplus of deposits
onto which it could bolt the
632 Lloyds branches it is trying
to buy.
NBNK set to
crash state
sale of Rock
BY JULIET SAMUEL
BANKING
News
7 CITYA.M. 17 OCTOBER 2011
NBNK chief Gary Hoffman could move in on the bank he used to run Picture: REX
RBS is planning a strategic review of
its business that could see thousands
of jobs cut at its investment bank,
many of them in the City. Senior
management at the bank are
mulling the continuing onslaught of
regulation with an eye to paring
down its global banking & markets
(GBM) division. Chief executive
Stephen Hester has talked about
plans to reduce the cost base fur-
ther even after the recent
announcement that it expects to cut
2,000 jobs in the next year.
SHAWBROOK Bank, a new retail sav-
ings bank, is targeting 250m in new
gross lending to small and medium-
sized enterprises (SMEs) this year, the
banks managing director Philip
George told City A.M. The bank, bought
by RBS Equity Finance in January and
relaunched under the Shawbrook
brand today, also plans to mop up
350-400m in new retail deposits over
the same period. Meeting the targets
would mean a substantial expansion
of its balance sheet, which currently
has assets worth 75m.
New retail bank
targets SMEs
RBS mulls cuts
in finance jobs
BANKING
BANKING
F
o
rm
e
r C
E
O
o
f th
e
R
o
c
k
m
u
lls a
b
id
NBNK Investments is eyeing a bid for
Northern Rock, City A.M. has learned.
The investment vehicle headed by
Lord Levene had been ruled out of the
running because it was forbidden
from making a bid for the Rock for a
period of 12 months after poaching its
former chief executive Gary Hoffman
last year.
However, City A.M. understands that
the Rock auction is running well
behind schedule, and so NBNK is con-
sidering entering the fray in October
when its prohibition on bidding ends.
The loose timetable will help. An
adviser familiar with the sale said:
Its not at all clear as to price or
process. And its not clear when it will
become clear. If NBNK does decide to bid it
have a significant
rivals d
B
Y
L
FREE
BY JULIET SAMUEL
EXCLUSIVE
DOWNTONS
CREATOR IN
NEW DRAMA
AT NOMURA
SUNDAYS have taken on new meaning for
Nomuras joint head of global equities
Benoit Savoret, ever since Downton Abbey
returned to the nations screens.
So lets hope the twists and turns of
the First World War drama havent been
spoiled for Savoret and his colleagues
William Vereker, Paul Spanswick and
Brett Olsen, after Nomuras senior
bankers spent the evening with the cast
of the ITV show at a fundraiser hosted by
its creator Julian Fellowes.
For once, the very entertaining Jeffrey
Archer was upstaged, as the Earl of
Grantham, Lady Mary and valet John
Bates otherwise known as actors Hugh
Bonneville, Michelle Dockery and
Brendan Coyle held court at the Silver
Jubilee Ball in aid of Nomuras partner
charity The Rainbow Trust.
Fellowes was on the verge of tears as
he talked about the work of the chil-
drens charity, and his emotional turn
inspired the cast of Downton Abbey to
bid for dinner with the writer who made
them household names.
None of his actors won the dinner with
Fellowes though; another, unnamed,
guest a few glasses of wine had been
drunk by that stage placed the bid that
helped the nights takings reach 200,000.
DISHES OF THE DAY
JAMIE Oliver has already invited a few of his
new neighbours round to let the kitchen
work its way up to fifth gear. And from
today, the doors of the latest Jamies Italian
at 38 Threadneedle Street have been
thrown open to the rest of the City.
The restaurant is special anyway, says
Jamies camp, but mindful of its demand-
ing banking diners, Oliver and his busi-
ness partner Gennaro Contaldo have
added some extra dishes to the menu.
City people are going to want different
wines from people who eat in, say,
Guildford, explained a mole.
Nothing against Guildford, you under-
stand, but the dinner ladies nemesis is
limiting his Cumbrian rock oysters,
Devonshire lobster ravioli, white truffle
risotto and herb roasted quail to his latest
affordable Italian franchise in the for-
mer Bank of Scotland building.
Book now at KLM.com
Pack & GO
Super Deals
Boston
New York
Miami
362
378
392
from
from
from
return, incl. taxes
return, incl. taxes
return, incl. taxes
Fares quoted are for non-stop return ights in economy class from London Heathrow, operated by Delta Air Lines, including taxes and charges, and are subject to change. Fares are subject to availability and exchange rate variation. Please check for exact
fare at klm.com at time of booking. Book by 24/10/11. Travel periods may vary. Credit card surcharge will apply. Specic booking conditions and the General Conditions of Transportation of KLM and AIR FRANCE apply. Prices correct at 23/09/11.
A
f r i c
a
A
sia
A
m
e
ric
a
E
u
r o
p
e
Non-stop from London Heathrow
e p Su
ck & Pa
s al e r D e
O G ck &
ork New Y
n o st Bo
e p Su
op fr n-st No
n, i r tu e r
m ro f
m ro f
378
362
ork
s al e r D e
ath n He do n m Lo o op fr
s e . tax cl n n, i
378
362
w o r ath
ami i M
n, i r tu e r
n, i r tu e r
m ro f
392
378
s e . tax cl n n, i
s e . tax cl n n, i
392
378
a e r a f
s q e r a F
e p l e v a r . T 1 1 / 00/ 1 / 4 y 2 b k o o B . g n i k o o f b o e m i t t m a o c . m l k t a
m L o r s f s a l y c m o n o c n e s i t h g i n r u t e p r o t s - n o r n o e f r d a e t o u s q
o c b i c e p . S y l p p l a l i w e g r a h c r u s d r a c t i d e r . C y r a y v a m s d o i r e
e x a g t n i d u l c n , i s e n i r L i a A t l e y D d b e t a r e p , o w o r h t a e n H o d n o m L
a t r o p s n a r f T o s n o i t i d n o l C a r e n e e G h d t n a s n o i t i d n o c g n i k o o
t t c e j b u e s r s a e r a . F e g n a h o c t t c e j b u e s r d a n , a s e g r a h d c n s a e
9 0 / 3 t 2 t a c e r r o c s e c i r P . y l p p a E C N A R R F I d A n a M L f K o n o i t a
x r e o k f c e h e c s a e l . P n o i t a i r a e v t a e r g n a h c x d e n y a t i l i b a l i a v o a
. 1 1 / 99/
t c a x
The Capitalist
8 CITYA.M. 17 OCTOBER 2011
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
NO MATTER that Gracechurch
Street is 53 miles from the sea
Loch Fyne still aims to serve the
freshest seafood you will find any-
where. A big claim, and one that
six stockbrokers were keen to put
to the test when they visited the
seafood restaurant that started
life as a small oyster shack in a
glen at the head of Argylls Loch
Fyne. Three dozen oysters disap-
peared faster than you can say
enterprise with respect for ani-
mals, people and ecology,
accompanied by one bottle of
Baron de Barbon Reserva Rioja,
two bottles of Mersault, four bot-
tles of vintage Pol Roger, four
plates of Kinglas fillet steak, two
ribeye steaks and three
lobster/crab platters. How wor-
thy of honour is the sea,
thought the group, inspired by
the venues Gaelic motto as they
split the 700 bill.
BILL OF THE WEEK
Brett Olsen, EMEA MD at Nomura (left) and his wife Betsy (centre) with the Downton Abbey cast
Lines open 7 days a week, 8am-8pm, except bank holidays.
Get a free extra
with SIM Only
worth 5 a month.
Call 08080 990 000
Free SIM on great value 12-month plans
Terms apply. Subject to credit check. Call us free on your landline; standard network charges
apply to all calls made froma mobile phone.
Search online for Vodafone press
or go in store today
SIMprices on a
12-month contract
13
.00
a month
20
.50
a month
Mins to all UK mobiles & UK
landlines (starting 01, 02, 03)
300
mins
900
mins
Standard UK texts
3000
texts
3000
texts
UK mobile internet 100MB 250MB
Wi-Fi access with
BT OpenZone within UK
750MB 750MB
Choose a 12-month SIM Only plan
and get a free extra worth 5 a month:
un||m|ted ca||s to uR |and||nes tstart|nq 01, 02, 03) or
un||m|ted vodalone-to-vodalone uR ca||s tup to 60 m|nutes)
THE manufacturers organisation EEF
has added its name to the growing list
of bodies calling on the chancellor to
introduce a package of tax reliefs for
companies who are about to be ham-
mered by the governments 3.2bn
stealth tax on carbon.
In a set of demands ahead of
George Osbornes autumn state-
ment next month, the EEF said:
The chancellor must introduce a
compensation package which
effectively targets those energy-
intensive industries most affect-
ed by its climate change
policies.
Earlier this month, City A.M.
revealed the chancellor was
poised to announce such a
compensation package in his
autumn statement, after
intensive lobbying from
employers organisation the
CBI.
The package will focus
on those firms that use large amounts
of energy, such as cement, aluminium
and steel makers.
Osborne came under fierce criti-
cism after he shocked industry by
announcing a carbon floor price in
his Budget last March, which will
raise 3.2bn for the excheq-
uer by 2016. The
Treasury will
set a mini-
mum price for
carbon even if
the market price
is lower and col-
lect the differ-
ence as taxation.
It was labelled a
stealth tax
because the govern-
ment said it was a
green measure while
critics argued it was
only introduced to
help pay for a 1p cut in
fuel duty.
Earlier this month,
John Cridland, the direc-
Manufacturing body in
call for carbon tax relief
George Osborne is set to announce a relief package for energy intensive firms Pic: Reuters
BY DAVID CROW
POLITICS
News
9 CITYA.M. 17 OCTOBER 2011
@
@
@
MORE NEWS
ONLINE
www.cityam.com
tor-general of the CBI, told City A.M. he
had been in discussions with the
Treasury about exempting some ener-
gy-intensive firms from the carbon
floor price and was hopeful the
chancellor would find a resolution.
He added: I have been talking to
the Treasury about energy-intensive
industries and the carbon floor price
and I am hopeful we will see a resolu-
tion in the autumn statement.
JOHN CRIDLAND INTERVIEW: P18-19
In
d
u
s
try
to
g
e
t c
a
rb
o
n
ta
x
b
re
a
k
s
THE CHANCELLOR is set to unveil a
package of tax relief for energy-inten-
sive firms in his autumn statement,
after he was criticised for hitting
industry with a 3.2bn carbon stealth
tax in his last Budget.
City A.M. understands the package
will help those firms that use large
amounts of energy, such as cement,
aluminium and steel makers. A
Treasury source confirmed the chan-
cellor was working on a package for
energy-intensive industries.
John Cridland, the director-general
of the CBI, told City A.M. he had been in
discussions with the Treasury about
exempting some energy-intensive
firms from the carbon floor price and
was hopeful the chancellor would
find a resolution. If youre going to do a carbon flo
price in the UK then yo
sensitive who n
A
S
W
FREE
BY DAVID CROW
EXCLUSIVE
Subject to terms, conditions and availability. Valid for travel 8 Nov 11 - 28 Mar 12. Book by 24 Oct. Limited availability over peak travel periods,
holiday periods and sporting events. Handling fee per passenger per one-way ight: 6 per credit/debit card transaction may apply. Supplement
applies for travel Fri - Sun.
BORIS Johnson has risked a fresh row
with David Cameron by warning that
Britain will become a bit part play-
er in the global economy unless
a new hub airport is built in the
south-east.
The Mayor of London said
Britain risks becoming an avia-
tion backwater and losing
out in the battle for emerg-
ing markets contracts
because the capitals air-
ports will be at capaci-
ty within 20 years.
Without those
(extra) runways we
will lose business to
our European com-
petitors and we risk
relegation from eco-
nomic powerhouse
to merely a bit part
player in the global economy.
Johnson has long opposed the coali-
tions pledge not to expand airport
capacity in the south-east and wants to
see a floating multiple runway air-
port built in the Thames Estuary,
dubbed Boris Island.
He spoke out as Willie Walsh,
chief executive of International
Airlines Group, which owns
British Airways, claimed that new
transport secretary Justine
Greening faces a conflict
of interest because her
Putney constituency
is under the
Heathrow flight
path.
Last week
Walsh also said he
opposed a
Heathwick rail
link between
Heathrow and
Gatwick.
Mayors plea
to Cameron
over airport
BY PETER EDWARDS
AVIATION
News
11 CITYA.M. 17 OCTOBER 2011
M2
M20
M25
A2
A2
ESSEX
ESSEX
KENT
Ebbsfleet Intl
Channel Tunnel
rail link
New rail links
Southend-on-Sea
Sheerness
Gravesend
Chatham
New terminals
New terminals
Island runways
Maidstone
ISLE OF
SHEPPEY
Runway to
be built on
artificial
island
Shuttle train via
tunnels and bridges
How an estuary airport might look: flight paths would be up the Channel and along the
Thames Estuary to avoid residential areas
Promoted to the cabinet
from the junior economic
secretary role, Greening
faces several challenges. She
has to continue the high-
speed rail argument, tackle
Londons airport problems
having opposed a new
Heathrow runway and
establish her place as a cabi-
net heavyweight.
Replacing scandal-struck
Liam Fox, Hammond moves
to defence from transport
a brief in which he survived
rows over foreign trains and
high-speed rail links. Among
his many shadow roles, he
excelled in the Treasury. As a
result, his grasp of numbers
should come in handy when
dealing with the messy MoD.
Famed for winning a by-elec-
tion aged just 27 in 2009,
Smith is a rapid-riser with
socially liberal views. A for-
mer business consultant at
Deloitte, she will handle
potentially controversial poli-
cy areas including taxation
on North Sea oil, Britains
contributions to the EU
budget and excise duties.
Unsurprisingly for the chan-
cellors parliamentary private
secretary, Javid is on mes-
sage with Osbornes spend-
ing plans. He may indeed go
further, saying he believes in
a low tax, low inflation
economy. However, he is
less keen on inflation and
QE in contrast with his new
bosss letters to Mervyn King.
JUSTINE
GREENING
TRANSPORT
SECRETARY
PHILIP
HAMMOND
DEFENCE
SECRETARY
CHLOE
SMITH
ECONOMIC
SECRETARY
SAJID JAVID
GEORGE
OSBORNES
PPS
WHOS WHO: CABINET RESHUFFLE
News
12 CITYA.M. 17 OCTOBER 2011
PoliticsHome.com PoliticsHome.com
Apply to join today at www.cityam.com/panel
In association with PoliticsHome.com
In partnership
with
BlackBerry brand seriously hurt by
outages, according to our panel
Slight problems
No problems
Severe problems
Significant problems
%
28%
10%
31%
31%
BlackBerry users:
have you experienced problems?
Samsung
Sony Ericsson
None
Apple
Dont know
Other
HTC
%
8%
6%
6%
13%
1%
2%
Which brand will benet from BlackBerry outages?
How long will it take for the BlackBerry brand to recover?
Slightly less likely
Much less likely
Would never choose Blackberry
Would still consider Blackberry
Would always choose Blackberry
Dont know
Somewhat less likely
%
17%
9%
18%
19%
30%
5%
3%
Are you more or less likely to buy a BlackBerry?
Six Months to a year
One to three years
More than three years
Less than a month
Will never recover
Dont know
Brand is undamaged
One to six months
%
1%
4%
4%
17%
27%
24%
12%
10%
64%
THE BlackBerry brand has been seri-
ously damaged by the recent out-
ages that left users with no data
services for three working days,
according to the City A.M. /
PoliticsHome Voice of the City Panel.
More than half of the 355 people
surveyed said it will take longer
than six months for BlackBerry to
restore its dented reputation, with
10 per cent saying it will never recov-
er. Only four per cent said
BlackBerry-maker Research In
Motion (RIM) was unaffected by the
server failure.
An overwhelming 90 per cent of
BlackBerry users said they had been
hit by the outages last week, suggest-
ing the problems were not limited
to individual consumers but also hit
enterprise contracts.
Almost two thirds of respondents
said Apple will be the biggest win-
ner, with HTC and Samsung also
among the top choices. Forty-four
per cent of people said last weeks
events will make them less likely to
choose a BlackBerry when it comes
to renewing their contracts, with
almost a fifth saying they are
much less likely to choose the
brand. A third said it would not
affect their decision to buy a
BlackBerry next time.
The most common answer when
we asked respondents to describe
the current state of the
BlackBerry/RIM brand in just one
word was damaged, with tar-
nished, unreliable and trou-
bled also featuring highly.
The angry response was as much
due to RIMs handling of the crisis as
the outage itself. One respondent
said: People will forgive you for a
mistake if they understand what
went wrong and what youre doing
about it but if you communicate
poorly, as RIM has, then people are
far less forgiving.
Another said: RIM didnt man-
age the problem well. It should have
been quicker to acknowledge it had
a serious problem and said it was
addressing it as fast as possible.
BY STEVE DINNEEN
TELECOMS
Apple, the Apple logo, and iPad are trademarks of Apple Inc., registered in
the U.S. and other countries. App Store is a service mark of Apple Inc.
You wanted lower
commissions
So here they are
Our new Next Generation pricing allows you to
trade share CFDs from just 0.05% commission
with no minimum commission charge
Losses can exceed your initial deposit
Commission Minimum
Share CFDs 0.05% 0
Compare our pricing at cmcmarkets.co.uk/shares
Driving down the cost of trading
JEREMY Blood is planning to step
down from the helm of Mitchells &
Butlers following the aborted 940m
takeover by billionaire Joe Lewis, it is
understood.
Blood was appointed as interim
chief executive in March to replace
Adam Fowle, who left by mutual con-
sent after two years in the post.
City A.M. understands the former
Scottish & Newcastle managing direc-
tor made it clear he always took the
role on an interim basis, and that the
ongoing search for a full-time chief
executive for the pub group which
was put on hold during the takeover
talks by its largest shareholder Joe
Lewis has been restarted.
James Hyde, a senior partner at
headhunter Korn/Ferry Whitehead
Mann, worked on the July appoint-
ment of Ron Robson as M&Bs non-
executive deputy chairman, and it is
understood Hyde has been asked to
lead the hunt for suitable chief execu-
tive candidates, as well as at least two
additional non-executive directors.
Meanwhile, Bob Ivell, who agreed to
become acting chairman after Simon
Burke quit on 14 July, is facing pres-
sure to stay on permanently. Plans to
recruit a new chairman were shelved
last month when Lewis made his open-
ing possible bid of 230p per share.
There are as yet no plans for Ivell to
discuss his position with Lewis, but it
is understood the pair will meet in
the coming weeks.
Both Blood and Ivell were unavail-
able for comment.
M&B restarts
the hunt for
new Blood
ADVISORY firms and investment
banks face another troubling few
months, after the worst start to the
fourth quarter for M&A and equity
fundraisings since 2002.
Global M&A activity since the start
of the fourth quarter earlier this
month has reached just $58.9bn
(37.4bn), down from $99.2bn at this
point a year ago, data from Dealogic
shows.
UK M&A activity was even more
subdued, with activity at its lowest
ebb since 1998. Deals worth just
$2.8bn have closed since the start of
October. This compares to a peak of
$31bn in the same period in 2005 and
$3.9bn a year ago.
Equity market activity globally is
also at 2002 lows, as companies have
shelved IPOs and share placements
until they can be certain of better
prices in calmer conditions.
Companies worldwide have raised
just $3.6bn on stock markets in 88
transactions since the start of October
down from $62bn a year ago.
UK equity placements are down,
but not yet plumbing the lows seen in
2008. Ten UK companies raised a total
$102m in the past two weeks, down
from $2.4bn a year ago but still higher
than the paltry $52m raised in 2008.
Dealmakers set
for worst fourth
quarter since 02
BY HARRIET DENNYS
LEISURE
News
14 CITYA.M. 17 OCTOBER 2011
ANALYSIS l Mitchells and Butlers
p 260
240
220
10Oct 11 Oct 12Oct 13Oct 14Oct
240.00
14 Oct
Above: M&Bs largest
shareholder Joe Lewis
Left: Bob Ivell
Right: Jeremy Blood
BY ALISON LOCK
M&A
Summer
2012 flights
on sale
now!
Fares are one way including taxes and charges, only available online, subject to availability. 21 day advance purchase required. Available for travel on
or before 09.09.12. Not all routes operate throughout the entire travel period. Card charges may apply. Highlands and Islands destinations operated by
Loganair. Connections correct at time of going to print. Book by 20.10.11.
London Gatwick to: fares from
Aberdeen 29.99
Belfast City 29.99
Bergerac 39.99
Guernsey 29.99
Inverness 29.99
fares from
Isle of Man 29.99
Jersey 29.99
Newquay 29.99
Nantes 39.99
Newcastle 29.99
Benbecula
Kirkwall
Paris
Stornoway
Sumburgh
Plus now connect from London to...
Theres no
scrum on Flybe.
An assigned seat
is yours every
time you fly
Keeping London on the move
Cosmetic surgery tax hike
News
15 CITYA.M. 17 OCTOBER 2011
CHANCELLOR George Osborne is plan-
ning a new tax on plastic surgery
which would boost the price of some
treatments by 20 per cent.
New guidelines call for doctors per-
forming more invasive treatments
such as facelifts, breast enhancement,
liposuction and tummy tucks to
charge VAT. Until now, that charge has
only applied to minor treatments,
including Botox injections and chemi-
cal peels carried out in High Street
beauty salons.
The new levy, already dubbed the
boob tax could raise up to 500m a
year for the government, but has been
condemned by the cosmetic industry.
Patients would have to pay VAT
unless they can persuade the doctor
that the operation is therapeutic.
Clock is ticking on plan to stop a euro break-up
O
VER three weeks ago during the
IMF, World Bank meetings,
George Osborne suggested
Eurozone leaders had just six
weeks to come up with a substantive
plan to solve its crippling debt crisis.
The deadline is the G20 leaders sum-
mit in Cannes on 3 November.
The German Chancellor Angela
Merkel says theres no big bang
miracle cure, but hopes that Europe
is edging towards a solution have
buoyed stock markets. The FTSE has
rallied nearly eight per cent since the
Washington summit and the DAX
and CAC40 are up nearly 15 per cent
in the last three weeks.
That rally has been based on the
broad outline of a plan centred
around three things: a more credible
restructuring of Greek debt, includ-
ing private sector involvement of 50
per cent or more; a big recapitalisa-
tion of banks 200bn or more to
deal with it, and devising a scheme
that leverages the firepower of the
EFSF from 450bn to 2 to 3 trillion
to protect the debt of other peripher-
al countries. There will also need to
be measures to try and boost growth.
But thats the easy bit, because at
the back of every investors mind is
the thought we could be facing a big
fall. To avoid disappointment, leaders
will not just need to announce a plan,
they will need to provide exact details
on how each component will work.
And lest they dither, former
Lehman banker Larry MacDonalds
note reminds us whats at stake. HSBC
says if the euro broke up it could
mean a repeat of the Great
Depression. The reintroduction of
national currencies and legal ambigu-
ities would rattle markets. Peripheral
nations could suffer hyperinflation as
their currencies plunged, while the
core economies would be hammered
by surging exchange rates.
If Greece left the euro first, UBS
suggests its new currency would drop
60 per cent and local borrowing costs
would jump at least seven percentage
points. The cost in that country
would be as much as 11,500 a person
in the first year.
If Germany quit the euro UBS says
its new exchange rate would surge 40
per cent and interest rates two per-
centage points. Banks would require
recapitalisation and trade would slide
20 per cent. Each person would lose
up to 8,000 in the first year.
Credit Suisse reckons the S&P 500
would tumble to around 750 and
company earnings would slide as
much as 45 per cent. They have
assigned a 10 per cent probability to a
euro breakup.
No pressure then. The clock is tick-
ing.
Ross Westgate is co-anchor of CNBCs
Worldwide Exchange.
CNBC COMMENT
ROSS WESTGATE
WH`TVU[OS`
DKIQP
RQYGT
UOCNN
QPRTKEG
n a 0 0 8 0 o t s l l a C . e l d n u b m o r f d e d u l c x e
O 1 3 s d n e r e f f O ! Z U V P [ P K U V J K U H Z T Y L ;
0 7 8 0 d n a 5 4 8 0 o t s l l a C . e t u n i m r e p p 0 2 t s o c 8 0 8 0 d
s r e m o t s u c e g n a r O g n i d a r g p u d n a w e N . 1 1 0 2 r e b o t c O
o t p u t s o c s r e b m u n 8 0 r e h t O . e t u n i m r e p p 0 4 t s o c 0
c t i d e r c o t t c e j b u S . h
e p p 6 . 6 7 o t p u t s o c s r e b m u n 0 7 0 . e t u n i m r e p p 6 . 6 7
i l n U . e t u n i m r e p 2 o t p u t s o c s r e b m u n 9 0 . e t u n i m r
v r e s g n i d r a w r o f l l a c o t s l l a C . s k r o w t e n e l i b o m
e i l p p a y c i l o p e s u r i a f , s t x e t n o s r e p - o t - n o s r e p d e t i m
u n 9 0 d n a 8 0 , 5 0 , 7 0 g n i n n i g e b e s o h t g n i d u l c n i s e c i v
. y l n o K U . s
e r a s r e b m u
ca|| 0800 079 0431
or pop |n to an Orange shop
So what do you get for such a great price? A powerful dual core processor, fingerprint security and a huge battery life.
Get the Motorola ATRlX on Panther and we'll throw in 750MB of mobile internet, 200 minutes, unlimited texts and two
free Swapables every month - like Sky Sports Mobile Tv or unlimited music.
[OL4V[VYVSH(;90?
MYLLVU7HU[OLYjust 26HTVU[O
S V Y V [ V 4 L O [
m y r e v e s e l b a p a w S e e r f
X l R T AAT a l o r o t o M e h t t eet G
s r o f t e g u o y o d t aat h w o S
L Y M
? 0 9 ; ((; H
M s t r o p S y k S e k i l - h t n o m
r h t l l ' e w d n a r e h t n a P n o X
o p A ? e c i r p t a e r g a h c u s
O [ U H 7 U V L L
m d e t i m i l n u r o v T e l i b o M
e l i b o m f o B M 0 5 7 n i w o r
s s e c o r p e r o c l a u d l u f r e w o
2 t s u j Y L O
. c i s u
n u , s e t u n i m 0 0 2 , t e n r e t n i
a y t i r u c e s t n i r p r e g n i f , rr, o s
O [ U V T H 6 2
o w t d n a s t x eex t d e t i m i l n
. e f i l y r e t t aat b e g u h a d n a
e c i r P
. g n i l l i b e n i l n o d n a t i b e D t c e r i D y b t n e m y a p e m u s s a s
S e g n a h C . d e r i u q e r e n o h p e l b i t a p m o C : s e | b a p a w S .
b a r e b m u n e h t o t s l l a C . s y a d 0 3 y r e v e e c n o s e l b a p a w S
m o r f e t u n i m r e p p 0 2 , e n i l d n a l T B a m o r f e e r f e r a e v o b
. y r a v y a m s e g r a h c r e d i v o r p r e h t o , e l i b o m e g n a r O r u o y
s m r e t / k u . o c . e g n a r o e e s , s m r e t l l u f r o F
HOUSE prices in the south are now
over twice as high as elsewhere in
England and Wales, according to ask-
ing prices collated by Rightmove.
Asking prices in southern regions
have shot up by 4.7 per cent this
month, wedging an even bigger gap
between housing costs in the south
compared to further north.
In London alone, sellers are asking
5.2 per cent more than in September.
In regions outside the south -- the
north and north west, Yorkshire and
Humberside, the Midlands and Wales
prices in October actually fell 0.7 per
cent compared to September.
The gulf in average asking prices is
now the highest Rightmove has ever
recorded, with prices in the south
(336,743) now more than double
those in the north (164,347), the
report said.
Asking prices in London have hit an
all time high, according to the
Rightmove data, released this morn-
ing. The average house price has
spiked to a jaw-dropping 450,210.
The number of new sellers in the
capital has plummeted, with weak
supply and high demand pushing
prices higher.
Supply is down 13.9 per cent in
London this month, compared to
October 2010. Throughout the year so
far, the number of new sellers is down
7.9 per cent on the same period last
year.
And one of the main drivers of
more buoyant conditions in the capi-
tal is the number of potential buyers
who have either ready cash or the abil-
ity to raise a substantial deposit and a
secure job to fund mortgage repay-
ments, the report said.
Lenders in London are competing to
offer low rates to cash-rich house buy-
ers, Rightmove said.
However, the reality is that there is
further evidence of the two-tier twist
which is dogging the return to more
widespread liquidity in the housing
market, added Rightmove director
Miles Shipside.
House price
rises limited
to the south
BY JULIAN HARRIS
HOUSING
Interview
18 CITYA.M. 17 OCTOBER 2011
The quiet diplomat
who is fighting on
behalf of the real
squeezed middle
I
T is always hard to fill someone
elses shoes, especially if they
belong to a larger-than-life figure
such as Lord Digby Jones or Sir
Richard Lambert. That was the posi-
tion that John Cridland found himself
in when he took the reins at the CBI
just under a year ago. The mild-man-
nered, softly spoken 50-year old could-
nt be more different to his
predecessors, but his quiet, behind-
the-scenes diplomacy mastered dur-
ing a decade as the CBIs number two
appears to be paying off.
Frenetic is how he describes the
party conference season when we
meet towards the end of the Tory
gathering in Manchester. He has been
in much demand recently, as the gov-
ernment seeks to develop a growth
plan to boost the flagging economy.
Indeed, many of the announce-
ments in George Osbornes speech,
most notably a policy to relax some
employment regulation and a scheme
to boost credit for smaller firms, are
straight off the CBI wish-list. Cridland
says he is hopeful that more
demands, such as tax reliefs for manu-
facturers that use large amounts of
energy, will be met when the chancel-
lor delivers his autumn statement
next month.
At the Tory conference, Cridland
finds a chancellor who is at least will-
ing to listen to, and in some cases
adopt, his ideas. But he says he was
concerned by the anti-business
rhetoric on display at the Labour and
Liberal Democrat conferences. Ed
Miliband might have claimed his
speech wasnt anti business, but he
certainly left that impression with a
lot of business people. Although
there is the occasional bad apple in
the barrel, most companies are try-
ing to do the right thing and making
a good fist of it, he says.
For businesses, one of Osbornes
most welcome announcements was to
allow firms to dismiss workers during
their first two years in the job without
being taken to an unfair dismissal tri-
bunal, up from one year currently,
while also introducing fees to deter
spurious claims.
I pressed the chancellor to make
that announcement, explains
Cridland, who says the measure will
help smaller businesses the most. If
youve got four people and youve got
just about enough business to take on
a fifth, you are very worried about
ending up at an employment tribu-
nal. Its a David and Goliath situation.
You end up with a manager whos
also an amateur personnel officer
whos just out of their depth.
Far from exacerbating unemploy-
ment, the measure will actually help
bring it down, especially for the
young, he says. If I was a 16 year old
who couldnt find a job, whats the
priority for me: getting a job, or hav-
ing an extra employment right?
Because the alternative is having the
right but having no job at all.
Despite the victory for employers,
Cridland admits frustration at the
fact Britain cant do more to tackle
some of the more pernicious employ-
ment regulation coming out of
Brussels. At the same point that this
reform is being announced, theyre
bringing in the agency workers direc-
tive [which guarantees temporary
workers the same pay and rights as
full-time ones] which I think is really
detrimental to the unemployed trying
to get back into the labour market.
He urges the government to do as
much behind-the scenes work as it
can to prevent similar red-tape fur-
ther down the line. The agency work-
er directive was held at bay for more
than six years by Tony Blair. It was
passed when Gordon Brown was
Prime Minister. So draw your own con-
clusions. If the government has the
will and recruits allies in Europe, it
can fight battles and win the argu-
ments.
Cridland is less certain about credit
easing, the radical scheme that will
see the government sell tens of bil-
lions of pounds worth of gilts and use
the proceeds to buy corporate bonds.
Although he describes the plan as an
example of exciting, innovative, out
of the box thinking, he wants to see
flesh on the bones before delivering
a final verdict. Asked whether he is
worried the government could end up
with billions of dollars of toxic assets
on its books, he replies: Thats the
$64,000 dollar question. The govern-
ment should not take risks with the
public finances.
He hopes the scheme will be used
to help the squeezed middle not
the one coined by Ed Miliband, but
smaller, high growth businesses
that are struggling to get finance. He
is keen to make a distinction between
these firms and what Americans
would call Mom and Pop opera-
tions. Although he has some sympa-
thy for the micro-businesses who fill
MPs postbags because they cant get
an overdraft extension, he can under-
stand why banks turn them away. It is
the drought of credit for the Ms in
SME that is the much bigger prob-
lem, he says.
Unlike many, Cridland doesnt
blame the banks for constrained cred-
it, at least not entirely. Indeed, he
raised a few eyebrows when he came
out so strongly against the interim
findings of the Sir John Vickers report
into banking. I know the CBI putting
its name behind a message calling on
Vickers to be more careful was poten-
tially quite a challenge. Am I just
speaking for the banks? No, Im speak-
ing for the businesses who would not
be able to get finance if Vickers had
defined the ring-fence too tightly.
However, he is clear that banks
alone cant solve the credit problem,
especially because regulatory
requirements have gone up, weaken-
ing their ability to lend. Although he
is happy that the government is try-
ing to ginger up corporate debt mar-
kets with its credit easing plan, he is
pressing Osborne to consider another
radical scheme: tax breaks for big
firms who buy equity stakes in their
suppliers.
Its often larger companies who
know who the high growth business-
es are, because theyre watching
them, keeping an eye on them,
theyre in their supply chain. They
might actually want to strengthen
those companies and see them
become more robust. So I think there
might be a change for tax credits for
large companies that take minority
stakes in smaller firms.
Although we spend most of our
time talking about what Osborne can
do to boost the economy, he says the
Eurozone crisis largely outside the
chancellors control poses the
biggest risk to the UK economy. I ask
him to look into his crystal ball to pre-
dict an outcome, and his response,
while characteristically understated,
is more downbeat than I expected. It
is not obvious that there is a sustain-
able solution on the cards.
He qualifies this rather Malthusian
statement by saying he still thinks
the most likely outcome is some
kind of transfer union, which would
see the richer European states under-
write the debts of weaker peripheral
ones. Thats the only way we will set-
tle this, he argues, because the real
target is Italy and Spain. In many
ways the focus on Greece is a proxy
for what comes after. He has little
time for European politicians, who he
says have exacerbated the crisis with
constant dithering, and fears they
may have wasted all their political
capital by letting the saga drag on.
It saddens me that there were a
number of moments over the last 18
months when European governments
could have created a firewall that
would have been high enough and
wide enough to keep the markets at
bay. But theyve never quite done
enough. So the emerging fire has
jumped the firewall each time.
With that in mind, I ask whether
his dogged determination to cut red
tape can seem a little futile when pit-
ted against the storm clouds gather-
ing over the Eurozone. On the
contrary, he argues that the Euro cri-
sis shows exactly why we need to
make the UK a better place to do
business, particularly in areas like
deregulation, infrastructure and plan-
ning. The Eurozone crisis doesnt
alter the prescription, he says. It just
means we must do even more of the
same.
Interview
19 CITYA.M. 17 OCTOBER 2011
WORDS BY DAVID CROW
CBI boss John Cridland says the Euro
crisis means it is even more urgent for
the UK to boost its competitiveness
John Cridland
became CBI
director-general in
November 2010
Picture: Getty
Age: 50
Work: A life-long lobbyist, Cridland
joined the CBI as a policy adviser in
1982, rising to become director of
environmental affairs and of human
resources policy. He was appointed
deputy director-general in 2000 and
took the top role in November 2010.
External roles: Cridland serves as a UK
commissioner for employment and
skills and is on the board of business
in the community. He was a member of
the low pay commission from 1997 to
2007 and vice-chair of the national
learning and skills council from 2007
to 2010. In 2006 he received a CBE
for services to business.
Education: Read history at Christs
College, Cambridge.
Family: Married, two children
Lives: Bedfordshire
CV | JOHN CRIDLAND, DIRECTOR-GENERAL OF THE CBI
More ights, more often. More ways to
meet the deadlines you cant miss.
Download our free app.
More lounges for
you to work in
When you work
late, so do we
Our new
time machines
Bye bye
boarding pass
Some deadlines just wont
budge. Which is why at
Heathrow we give you
more exibility to meet them.
First, weve more ights
to business destinations.
(And thats the
actual destinations
themselves.) So
if your schedule
changes, chances are theres
a scheduled ight to meet it.
There are more ways of getting here
too. (The free Heathrow Apps got
them covered.)
By tube and
Heathrow Express
were just a short trip from
central London. Drive to
Terminal 5 and our new
driverless pods
whizz you from
business car
park to terminal.
Then, because
we understand youll only
relax if you can carry on working, youve a
choice of 23 airline lounges (including quite
a few award wi nners).
And if youve your pass on
your phone, even boardings
getting smarter.
Need a later flight back? Well be
working late too. And youll arrive
to more high-tech ways to
speed through passport control.
At Heathrow we work around
the clock to make sure you
get where you need to be, when you need
to be there.
Especially for the deadlines you actually
look forward to.
The best app
for business
THE fate of 11 giant out of town stores
owned by Best Buy and Carphone
Warehouse is close to being decided,
with a sale or closure the most likely
outcome.
The joint venture partners this
summer froze the planned opening
of a string of new stores and launched
a review into the existing ones after
they recorded a greater than expect-
ed loss in their first year.
Best Buy and Carphone, who each
own 50 per cent of the venture, are
said to be thrashing out the details,
having previously said they want the
issue tied up this autumn.
It is understood US-based Best Buy
is biding its time to get a fuller pic-
ture of the performance of its native
operations before making a final deci-
sion on the venture.
It is unlikely a rival would be will-
ing to buy the entire portfolio of
stores given the choppy economic
climate but an individual sale of the
most viable units is on the cards,
with the remainder likely to be shut-
tered.
Another option being considered is
a downsizing of the existing stores,
mirroring the tactics of Best Buy in
the US, where there has been a dip in
demand for flatscreen TVs and desk-
top PCs.
Regardless of the future of the big
box stores, Carphone and Best Buy
will continue their successful part-
nership in the US, where a string of
mobile phone concession stalls have
seen revenues surge.
Crunch time
for Best Buys
UK venture
RAIL PASSENGER numbers grew by
more than five per cent over the sum-
mer, helped by more travellers switch-
ing to public transport as high petrol
prices force drivers to leave their cars
at home.
Figures from the Association of
Train Operating Companies (ATOC)
show that the number of journeys
taken in the third quarter of this year
rose by 5.3 per cent to 314.3m, up from
298.4 in the same period last year.
The number of train journeys is set
to reach 1.3bn for a second consecutive
year. In 2010 ATOC reported that pas-
senger numbers reached 1.3bn the
highest peacetime level since 1928.
Despite difficult financial times,
more people are choosing to go by
train when travelling to work and on
business, visiting friends and family,
or just taking a well-earned break,
Michael Roberts, the chief executive of
ATOC, said.
The sale of cheap advance tickets
for those who book early have almost
doubled in the last four years, with
almost a million bought each week,
the association said.
Journeys in London and the South
East grew by 5.8 per cent. The number
of long distance journeys rose by 4 per
cent while regional journeys were up
by 4.4 per cent.
Train journeys
set to return to
peacetime high
Carphone Warehouse boss Charles Dunstone is reviewing the fate of Best Buy in the UK
BY STEVE DINNEEN
RETAIL
TRANSPORT
News
20 CITYA.M. 17 OCTOBER 2011
ANALYSIS l Carphone Warehouse
p
370
360
350
340
10Oct 11 Oct 12Oct 13Oct 14Oct
347.00
14 Oct
News
CITYA.M. 17 OCTOBER 2011 21
HSBC
Antonio Simoes, group head of strategy
and planning, has been appointed to the
new position of head of retail banking
and wealth management, Europe. John
Flint, CEO of HSBC Global Asset
Management, has been appointed as
chief of staff to the group CEO and
group head of strategy and planning, and
Sridhar Chandrasekharan, global head of
wholesale at HSBC Global Asset
Management, has been appointed as
CEO of HSBC Global Asset Management.
All three appointments are effective
from 1 January 2012, subject to board
and regulatory approval.
Russell Investments
The independent financial services firm
has appointed Crispin Lace and Nick
Spencer as directors of the Consulting
and Advisory Services team. Lace joins
from Mercer, where he was a member
of the asset allocation committee, and
Spencer joins from GAM, where he led
the institutional business for UK,
Ireland and the Netherlands.
IP Group
The intellectual property developer
has appointed Mike Humphrey to the
board of non-executive directors.
Humphrey is the group chief executive
of Croda International.
Redefine International
The diversified income property firm has
appointed Greg Clarke as an independ-
ent non-executive director and chairman
designate of the company. Clarke will
succeed the current chairman, Philippe
de Nicolay, who will retire from the
board in November 2011.
Metro Bank
The high street bank has appointed
serial entrepreneur Luke Johnson, cur-
rently chairman of the Giraffe restau-
rant group and Patisserie Valerie, as a
non-executive director.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
The Crown Estate
Ian Marcus has been appointed as a non-executive
of The Crown Estate, effective from 1 January
2012. Marcus is currently chairman of European
real estate investment banking at Credit Suisse,
chairman of the Bank of England Commercial
Property Forum, and chairman of The Princes
Regeneration Trust. Previous roles have included
president of the British Property Federation and
chairman of the Investment Property Forum.
+44 (0)20 7557 7245
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
WALL STREET WEEK AHEAD
G20 and US earnings set to be positive catalysts
A
REVIVAL in hopes that the
Eurozone crisis can and will be
contained will continue to spur
stocks higher this morning.
The mood of the market certainly
seems to be leaning towards the posi-
tive, and that will likely be reinforced
by news from Paris at the weekend
that the G20 have agreed that the IMF
should consider new ways to provide
on a case by case basis short-term liq-
uidity to countries facing systemic
shocks.
The FTSE 100 index is called to
open up around 50 points at 5,516.
Germanys DAX 30 index is expected
to open up 61 points at 6,028, and the
French CAC 40 is forecast to open
higher by 30 points at 3,247.
Whilst Europe will inevitably con-
tinue to play its part with market
direction, recent encouraging news
from the US has also been responsible
for the current boost in global stocks.
Retail sales data on Friday rose at
their fastest pace in seven months,
demonstrating how American con-
sumers are shrugging off past con-
cerns about global recession. A wave
of big-name earnings due out this
week could well help push the mar-
kets even higher, with the tone set by
stellar results out from Google on
Thursday. Companies due to report
include Goldman Sachs, Bank of
America, Morgan Stanley, IBM, Coca
Cola and Apple.
Apples shares closed at a record
high, and came within a whisker of
the intraday lifetime high, on Friday
at $422, with sales on the new iPhone
4S expected to reach between two
and two and a half million units fol-
lowing the launch last Friday.
Further evidence that we could be
in early year-end rally mode comes
from the VIX volatility index, which
closed 8 per cent lower, down for a
remarkable ninth day in a row.
Consistently lower levels on the VIX -
the so-called fear index, are often
regarded as heralding a period of
increased risk appetite.
Martin Slaney is director of global prod-
uct management at GFT
MARTIN ON
THE MARKETS
T
HE coming week is likely to be
crucial for the direction of
financial markets until year-
end, with Eurozone stability at
stake as well as the latest test of the
one bright spot for investors, corpo-
rate earnings.
In the case of the Eurozone, there is
talk of a binary moment next week-
end in which a European leaders
summit either comes up with the
goods to assuage concerns about the
debt crisis or disappoints again.
The former might well be taken as
a reason for a sustained rally in
riskier assets such as equities. The lat-
ter would almost certainly spark a
sell off.
A comprehensive plan for solving
the Eurozone debt crisis at the sum-
mit in Brussels has been flagged by
Germany and France, raising expecta-
tions on markets. Some idea of what
is at stake for investors can be seen in
their actions over the past few weeks.
World stocks as measured by MSCI
are up more than 12 per cent since
hitting a low on 4 October.
At the same time, yields of both
long term US bonds and core
Eurozone debt have risen well off
their lows. Part of this is in response
to expectations of a Eurozone debt
roadmap. But it also reflects extreme-
ly bearish positioning throughout the
northern hemispheres summer
months.
Asset allocation polls at the end of
September showed safe-haven cash
holdings at levels that can be a count-
er indicator for a rally. In effect,
investors hold cash so that they can
put it to work quickly if the invest-
ment climate changes which may
be happening.
MARTIN SLANEY
18Jul 5Aug 25Aug 5Oct 15Sep
6,000
5,200
5,600
ANALYSIS l FTSE
5,466.36
14 Oct
18Jul 5Aug 25Aug 4Oct 14Sep
7,500
5,500
6,500
ANALYSIS l DAX
5,967.20
14 Oct
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Whitbread
1,650
1,550
1,450
1,350
Aug Sept Oct
p
1,615.00
14 Oct
WHITBREAD
Analysts at UBS say Costa and Premier Inn owner Whitbread, which reports
rst half results tomorrow, is its most preferred stock in the leisure and tobac-
co sector. The investment bank is forecasting revenues of 889m, ebitda of
183m, and earnings per share of 69.6p. Whitbreads restaurants continue to
drag down on growth but Costa and Premier Inn are performing well. UBS
rates the stock a buy with a price target of 2000p.
DIAGEO
Analysts at ING expect Diageo to report organic sales growth of four per cent
when it updates the markets on rst quarter trading on Wednesday. Most of
the growth will be driven by Latin America, Africa and Asia-Pacic, while
North America could also put in a decent performance. However, ING says
Europe is a black box due to the euro crisis and bad weather hurting beer
sales. ING rates the stock a hold with a target price of 1,294p.
LVMH
Analysts at Helvea expect luxury group LVMH to report ongoing sales growth
when it updates the market on its third quarter tomorrow. It expects the
watch and jewellery divisions to have recorded the best growth, although
prots could be hurt by the strong Swiss franc. Helvea thinks it will take some
time to determine whether the luxury sector can weather the economic tur-
moil. Until then, it rates the stock accumulate with a target price of 140.
ANALYSIS l Diageo PLC
1,300
1,200
1,100
Aug Sept Oct
p
1,292.00
14 Oct
ANALYSIS l LVMH Moet Hennessy Louis Vuitton SA
130
120
110
100
Aug Sept Oct
114.40
14 Oct
FREE INVESTMENT SEMINARS
WITH LEADING INDEPENDENT COVERED WARRANTS EXPERT, ANDREW MCHATTIE
COVERED WARRANTS
AN INTRODUCTION TO COVERED WARRANTS
18TH OCTOBER 2011 6:00PM - 7:30PM
Leading independent Covered Warrants expert, Andrew McHattie will be discussing
the basics of Covered Warrant investing and fixed risk trading. This seminar is designed
for those who are completely new to Covered Warrants, or anyone looking to refresh
their basic understanding.
Venue: SG House, 41 Tower Hill, London EC3N 4SG
A STRATEGIC GUIDE TO COVERED WARRANTS
1ST NOVEMBER 2011 6:00PM - 7:30PM
In this more advanced seminar, Andrew McHattie will be showing how you can use
gearing to hedge a portfolio, extract cash or take a non-directional trading view.
Societe Generale will also be talking about their extensive range of Covered Warrants
- the biggest in the UK.
Venue: SG House, 41 Tower Hill, London EC3N 4SG
To s|gn up to these events, v|s|t our webs|te sg||stedproducts.co.uk/educat|on
This advertisement is issued in the UK by the London Branch of Societe Generale. Societe Generale is a French credit institution (bank) authorised by the Autorit de Contrle Prudentiel (the French Prudential Control Authority). Societe Generale is
subject to limited regulation by the Financial Services Authority in the UK. Details of the extent of our regulation by the Financial Services Authority are available from us on request. Investors capital is at risk. Investors should not deal in these products
unless they understand their nature and the extent of their exposure to risk. We recommend that retail investors consult their own independent professional advisers. Exchange Traded Products are issued by either Societe Generale Effekten or
Societe Generale Acceptance N.V., each a member of the SOCIETE GENERALE group of companies. Any failure of the relevant SOCIETE GENERALE group issuer to perform obligations when due may result in the loss of all or part of an investment.
For more |nformat|on contact us on 0800 328 1199
Email: listedproducts@sgcib.com
COVERED WARRANTS ARE LEVERAGED PRODUCTS. CAPITAL IS AT RISK AND LOSSES MAY EXCEED THAT OF INVESTING IN THE UNDERLYING ASSET DIRECTLY.
News
22 CITYA.M. 17 OCTOBER 2011
THE owner of Saga and the AA,
Acromas, lost almost 500m last year
as the interest payments on its mas-
sive debt pile took their toll.
Acromas, taken private in June
2007 for 6.3bn by Charterhouse,
Permira and CVC, posted a 458m
pre-tax loss during the 12 months
ended January, 13.4 per cent narrow-
er than a year earlier. It now owes its
creditors 6.6bn, up three per cent.
Andrew Goodsell, Acromas chief
executive, described the results as
robust, with group turnover up
11.4 per cent to 1.84bn, including
953m from Saga and 883m from
the AA.
But operating profit, which rose
31.7 per cent to 241.6m, was effec-
tively wiped out by debt interest pay-
ments of 335.4m. More than 350m
was also rolled up into shareholder
loans.
Acromas, which has long been the
subject of flotation talk, said its busi-
nesses are growing and its debt is
exactly where it should be.
Goodsell said: This robust per-
formance has been achieved against
a very difficult economic backdrop.
As measures taken to reduce the pub-
lic sector deficit begin to take effect,
consumers are starting to feel the
pinch.
Acromas was set up in 2007 after
its private equity owners bought Saga
and the AA in June 2007, funded by
4.8bn of bank borrowings and
1.5bn of shareholder loans.
In July Acromas agreed to buy
Nasdaq-listed Allied Healthcare for
$175m (107m), six months after its
124m acquisition of Nestor
Healthcare.
Debt weighs
on owner of
AA and Saga
ABERDEEN Asset Management is tak-
ing its long-running 8m tax dispute
to a new tribunal hearing.
The claim, which attempts to over-
turn an 8m tax ruling related to an
options scheme used to compensate
chief executive Martin Gilbert and
other senior staff, is expected to be
heard before the Upper Tax Tribunal
later this month.
It comes after Aberdeens appeal to
a lower tribunal failed.
HM Revenue & Customs had origi-
nally demanded the fund pay
10.5m, later reduced to 8m, in
taxes and national insurance relating
to the payment of bonuses through
discounted share options between
2000 and 2003.
The fund manager, which has a
stock market value of 2.17bn, insists
it acted within the law.
Recent figures showed clients
pulled 800m from Aberdeens funds
in the two months to the end of
August amid market volatility. Assets
under management fell to 176.9bn.
Strong demand for global emerg-
ing market and global equities
strategies and other higher-margin
pooled funds is expected to push
annual profits to the top end of ana-
lysts forecast range of 262m and
297m.
Aberdeen to
pursue tax row
with HMRC
The AA provides nearly half of Acromas revenue Picture: Alamyre
BY PETER EDWARDS
PRIVATE EQUITY
ASSET MANAGEMENT
Results
=FFK98CC
98I:C8PJGI<D@<IC<8>L<
0he|sea .................. (2) J vertea ...................... (0) I
Starr|e J Ve|||as 8
Terr] 45, R+m|res o Att. 4I,I89
||verpee| ............... (0) I Naa 0t4 ..................... (0) I
Oerr+r o8 Herr+re/ 8
Att. 45,05
Naa 0|ty .................(I) 4 Astea V|||a ................. (0) I
B+|ate||| Z8, Ja|rsar 4 w+rrac| o5
Kamp+r] 5Z, V||rer Att. 4I,0I9
Nerw|ch ................. (2) J Swaasea .....................(I) I
P||||rtar , oJ Or+|+m Z
V+rt|r O Att. 2,5I
0PR .........................(I) I B|ackbara ...................(I) I
He|asar o S+m|+ Z4
Att. I,48I
Steke ..................... (0) 2 |a|ham ....................... (0) 0
w+|ters 8O
De|+p 8 Att. 2,890
w|qaa .....................(I) I Be|tea ........................ (2) J
D|+me 4O ReaOa|er 4
Na 45
Att. II,2I E+|es 9O
P<JK<I;8P
Arseaa| ...................(I) 2 Saa4er|aa4 ................(I) I
1+r Pers|e , 8Z l+rssar J
Att. 0,0I8
Newcast|e ............. (0) 2 Tetteaham ..................(I) 2
B+ 48 V+r er V++rt 4O (per)
Amea|| 8o Defae o8
Att. 4,420
west Brem .............(I) 2 we|verhamptea ....... (0) 0
Brart 8
OemW|r|e 5 Att. 24,8I2
P w 0 | | A 00 Pts
DXe:`kp%%%%%%%%%%%%%%%%%%%%%%%%%% / . ( ' ). - )( ))
DXeLk[%%%%%%%%%%%%%%%%%%%%%%%%%% / - ) ' ), - (0 )'
:_\cj\X%%%%%%%%%%%%%%%%%%%%%%%%%%%%% / - ( ( )' 0 (( (0
E\nZXjkc\%%%%%%%%%%%%%%%%%%%%%%% / + + ' (( - , (-
C`m\igffc%%%%%%%%%%%%%%%%%%%%%%%%% / + ) ) (( 0 ) (+
Kfkk\e_Xd%%%%%%%%%%%%%%%%%%%%%% . + ( ) (* () ( (*
Jkfb\%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% / * * ) - / $) ()
8jkfeM`ccX%%%%%%%%%%%%%%%%%%%%%% / ) , ( (' 0 ( ((
Efin`Z_%%%%%%%%%%%%%%%%%%%%%%%%%%% / * ) * (' (( $( ((
8ij\eXc%%%%%%%%%%%%%%%%%%%%%%%%%%%%% / * ( + () (. $, ('
HGI%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% / ) * * - (+ $/ 0
N\jk9ifd%%%%%%%%%%%%%%%%%%%%% / ) ) + . (' $* /
JnXej\X%%%%%%%%%%%%%%%%%%%%%%%%%% / ) ) + . () $, /
=lc_Xd%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% / ( + * (' 0 ( .
<m\ikfe%%%%%%%%%%%%%%%%%%%%%%%%%%%% . ) ( + . (( $+ .
Nfcm\j%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% / ) ( , - () $- .
Jle[\icXe[%%%%%%%%%%%%%%%%%%%% / ( * + (' (' ' -
9fckfe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% / ) ' - () )) $(' -
N`^Xe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% / ( ) , - (+ $/ ,
9cXZbYlie%%%%%%%%%%%%%%%%%%%%%%% / ( ) , 0 (/ $0 ,
EGFN<I:?8DG@FEJ?@G
Br|qhtea ................ (0) 0 da|| ............................. (0) 0
Br|ste| 0|ty ............ (0) I Peterbere .................. (0) 2
Bara|ey .................. (0) 0 Rea4|aq...................... (0) I
0ar4|II ....................(I) 2 Ipsw|ch ......................(I) 2
0eveatry ............... (0) I Nettm |er .................. (0) 0
0erby ......................(I) I Seathampta .............. (0) I
N|44|esbreaqh ......(I) I N|||wa||...................... (0) I
Pertsmeath ........... (0) 2 Baras|ey .................... (0) 0
watIer4 ................. (0) 0 0rysta| Pa|ace ........... (0) 2
west dam ...............(I) 4 B|ackpee| .................. (0) 0
P<JK<I;8P
B|rm|aqham .......... (0) 2 |e|cester ................... (0) 0
P w 0 | | A 00 Pts
Jflk_Xdgke%%%%%%%%%%%%%%%%% (( . ) ) )- (* (* )*
N\jk?Xd%%%%%%%%%%%%%%%%%%%%% (( - * ) )) (' () )(
D`[[c\jYif%%%%%%%%%%%%%%%%%%% (( , - ' (+ - / )(
;\iYp%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% (( - ) * (, () * )'
9i`^_kfe%%%%%%%%%%%%%%%%%%%%%%%%% (( , * * (- (+ ) (/
?lcc%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% (( , * * 0 0 ' (/
C\\[j%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% (' , ) * )' (, , (.
:ipjkXcGXc%%%%%%%%%%%%%%%%%%%%% (( , ) + (- () + (.
:Xi[`]]%%%%%%%%%%%%%%%%%%%%%%%%%%%%% (( + , ) (, () * (.
@gjn`Z_%%%%%%%%%%%%%%%%%%%%%%%%%%% (( , ) + (. (0 $) (.
G\k\iYfif %%%%%%%%%%%%%%%%%%%%% (( , ( , )' (- + (-
9cXZbgffc%%%%%%%%%%%%%%%%%%%%%%% (( + + * (- (* * (-
C\`Z\jk\i%%%%%%%%%%%%%%%%%%%%%%%%% (( + + * (* (( ) (-
I\X[`e^%%%%%%%%%%%%%%%%%%%%%%%%%%% (( + * + () (( ( (,
9`id`e^_d%%%%%%%%%%%%%%%%%%%%% 0 + ) * (, (* ) (+
9liec\p%%%%%%%%%%%%%%%%%%%%%%%%%%%% (' * * + (* (* ' ()
Gfikjdflk_%%%%%%%%%%%%%%%%%% (( * * , () (* $( ()
9Xiejc\p%%%%%%%%%%%%%%%%%%%%%%%%% (( ) - * 0 (( $) ()
:fm\ekip%%%%%%%%%%%%%%%%%%%%%%%%% (( ) + , / (* $, ('
NXk]fi[%%%%%%%%%%%%%%%%%%%%%%%%%% (( ) + , 0 (/ $0 ('
D`ccnXcc%%%%%%%%%%%%%%%%%%%%%%%%%%% (( ( , , / (, $. /
;feZXjk\i%%%%%%%%%%%%%%%%%%%%%% (( ) ) . - (. $(( /
Efkkd=fi%%%%%%%%%%%%%%%%%%%%%% (( ) ) . (' )) $() /
9i`jkfc:`kp%%%%%%%%%%%%%%%%%%%% (( ( * . 0 )) $(* -
EGFN<IC<8>L<(
BreatIer4 .............. (0) 0 Scaatherpe ............... (0) 0
0hesterI|e|4 .......... (0) I Netts 0eaaty ............. (2) J
xeter .................... (0) 0 da44ersI|4 ................ (2) 4
dart|epee| ............. (0) I wycembe .................. (2) J
|eytea 0r|eat .........(I) I Bary ........................... (0) 0
NK 0eas .................(I) 2 Bearaemeath ............ (0) 2
Rech4a|e ................(I) 2 0e|chester ................. (2) 2
Steveaaqe ..............(I) I 0har|tea .................... (0) 0
Traamere ................(I) I 0|4ham ...................... (0) 0
wa|sa|| ....................(I) I Prestea ...................... (0) 0
Yeev|| ..................... (0) 0 0ar||s|e ...................... (0) J
P<JK<I;8P
SheII 0t4 ............... (2) 2 SheII we4 ................. (0) 2
EGFN<IC<8>L<)
A|0 w|mb|e4ea .... (0) I 0rewe ........................ (0) J
Accr|aqtea Staa|ey (0) 0 Sw|a4ea .....................(I) 2
Baraet ................... (0) 2 A|4ershet ...................(I) I
0raw|ey Tewa ....... (2) 2 Shrewsbary .............. (0) I
0aq & Re4 .............. (0) 2 P|ymeath ....................(I) J
dereIer4 ................ (0) 2 Bra4Ier4 .................... (0) 0
Nacc|esI|e|4 ......... (0) I 0xIer4 0t4 ................ (0) I
Seathea4 ............... (0) I Nerecambe ............... (0) I
Terqaay ................. (0) 2 0||||aqham ................. (2) 5
DFKFII8:@E>
=(Bfi\Xe>iXe[Gi`oP\fe^Xd=`eXcGfj`k`fejX]k\i
IXZ\1 S Vette| (Oer) Re Ba|| O|r J8m|rs O.994secs, Z l
H+m||tar (O|r) Vcl+rer O.J8.4.OJ, J V we||er (Aas)
Re Ba|| O.J8.4.4. Nfic[:_Xdg`fej_`gJkXe[`e^j1 S
Vette| (Oer) Re Ba|| J49.Opts, Z J Battar (O|r) Vcl+rer
ZZZ.O, J | A|arsa (Sp+) |err+r| ZZ.O. DXel]XZkli\ij
:_Xdg`fej_`g1 Re Ba|| 558.Opts, Z Vcl+rer 48.O, J
|err+r| JO.O.
email sport@cityam.com
TIP OF THE ICEBERG | Warburton banned for three weeks
CRESTFALLEN Wales captain Sam Warburton will serve a three-week ban for the tip tackle that saw him red carded in
Saturdays controversial World Cup semi-final defeat against France. Warburton, the favourite to lead the Great Britain
and Irish Lions on their 2013 tour to Australia, will miss Saturdays third place play-off game against the Wallabies
after yesterdays disciplinary hearing in Auckland deemed his challenge on wing Vincent Clerc to be worthy of a suspen-
sion. He has to bounce back from it now, said former Wales captain and World Cup colleague Ryan Jones. It is a diffi-
cult position to be in and he is going to go through it, but hes a big enough character to get over it. Picture GETTY:
BY JAMES GOLDMAN
RUGBY UNION
20
6
NEW ZEALAND
AUSTRALIA
RACE RESULT: TOP SIX
1. Sebastian Vettel 1hr 38mins 01.994secs
2. Lewis Hamilton 1:38:14.013
3. Mark Webber 1:38:14.471
4. Jenson Button 1:38:16.688
5. Fernando Alonso 1:38:17.683
6. Feilpe Massa 1:38:27.127
DRIVERS CHAMPIONSHIP
1. Sebastian Vettel (C) 349 points
2. Jenson Button 222
3. Fernando Alonso 212
4. Mark Webber 209
5. Lewis Hamilton 196
6. Felipe Massa 98
CONSTRUCTORS CHAMPIONSHIP
1. Red Bull 558 points
2. McLaren 418
3. Ferrari 310
4. Mercedes GP 127
5. Renault 72
6. Force India 49
RESULTS | KOREAN GRAND PRIX
Vettel targets Schumacher record as
Red Bull celebrate double coronation
LIVERPOOL forward Luis Suarez last
night hit back at Patrice Evras
claims that he racially abused the
Manchester United defender during
Saturdays 1-1 draw.
The Football Association is investi-
gating Evras allegation that the
Uruguayan said a certain word to
me at least 10 times.
Suarez said: Im upset by the
accusations of racism. I can only say
that I have always respected and
respect everybody. We are all the
same.
A Liverpool spokesman said on
Saturday that the 24-year-old cate-
gorically denied Evras version of
events.
Referee Andre Marriner was
informed of the allegation after the
final whistle at Anfield and passed
on more precise details to the FA,
who confirmed they are looking
into the incident.
Evra, captaining United in the
absence of Nemanja Vidic, raised his
complaint on a post-match interview
with French television station Canal
Plus. He said: There are cameras.
You can see him saying a certain
word to me at least 10 times. There is
no place for that in 2011.
Suarez has enjoyed a fairly trouble-
free first nine months at Liverpool
but has been involved in controversy
in the past.
Early last season he was banned
for seven matches after biting an
opponents shoulder while playing
for Ajax.
At last years World Cup he was
sent off in the quarter-final win over
Ghana for a deliberate handball on
the goal-line that denied the west
Africans an almost certain win.
An FA statement read: Referee
Andre Marriner was made aware of
an allegation at the end of the fix-
ture and subsequently reported this
to the FA. The FA will now begin
making enquiries into the matter.
Suarez upset at Evras
allegation of racist abuse
BY FRANK DALLERES
FOOTBALL
Sport
34
WENGERS VAN PERSIE FEAR
ARSENAL manager Arsene Wenger admits
he doesnt know whether Robin van Persie
will sign a new contract after the captain
underlined his importance to the Gunners
with a match-winning brace against
Sunderland.
Van Persie scored the fastest Premier
League goal this season after 29 seconds
and, following former Arsenal midfielder
Sebastian Larssons superb equaliser,
clinched three points with a late curling
free-kick.
The Dutchman, whose current contract
expires at the end of next season, attempt-
ed to allay fears he could reject a new con-
tract offer and become the latest big name
to desert the Emirates Stadium.
However he stopped short of pledging his
future to the north London club and
Wenger admitted that, despite being keen
to tie down Van Persie, the in-form striker
could refuse to extend his stay.
Unfortunately the ideal situation in
football does not exist often. The ideal situ-
ation is that he extends his contract but if
he doesnt you have to respect that, said
Wenger.
He knows that we are ready to talk
about it but the most important thing is
today and how much you are committed to
the cause as long as you are at the club.
Van Persie, who has scored seven goals in
11 games for Arsenal this season, when
asked whether he saw his future at the club
he joined in 2004 said: Im committed.
This is my eighth year. If you can say of one
player that hes committed, its me.
A fifth successive home win lifted the
fragile Gunners up to 10th in the table and
Wenger also had goalkeeper Wojciech
Szczesny to thank for an outstanding point-
blank save from Lee Cattermole that kept
the score at 1-1.
Van Persie again stole the show, however,
and terrorised the visitors defence from
the first minute, when he latched onto
Gervinhos pass and drilled a low finish
under Black Cats goalkeeper Simon
Mignolet.
The Holland star lashed another shot just
past the post as the home side chased a sec-
ond goal, but it was Sunderland who scored
next, Larsson whipping a brilliant free-kick
into the top-left corner on 31 minutes.
Szczesny spread himself to deny
Cattermole when the midfielder looked cer-
tain to score but Arsenal seemed to be head-
ing for a disappointing draw until Van
Persie swept a set-piece of his own over the
wall and into the top corner of Mignolets
net.
We have now won five home games on
the trot. If we can put another two or three
results together it will help confidence
because you can feel that the attitude and
spirit of the team is great, Wenger added.
BY FRANK DALLERES
FOOTBALL
2
1
ARSENAL
SUNDERLAND
Dutch strikers brace ensures a much
needed victory but Arsenal manager
can offer no guarantees that his star
man will stay beyond current season
ENGLAND seamer Jade Dernbach
insists he and his fellow bowlers
must find a way of subduing India
captain Mahendra Singh Dhoni if
his side are to claw their way back
into the one-day series.
The hosts took a 1-0 lead in the
five-match series with a compre-
hensive 126-run win on Friday in
which Dhoni bludgeoned 87 runs
from just 70 balls in a total of 300-7.
Of Englands attack, South
African-born Dernbach coped bet-
ter than most in the face of Dhonis
barrage he was the only one of
Alastair Cooks pacemen to go for
less than six an over and he con-
cedes England must work out a
way of stemming the flow of runs
from the World Cup winning skip-
pers bat in Delhi today.
Obviously, hes a fantastic play-
er, said Dernbach. As a bowling
unit, we just need to find a way of
getting him out, and restricting
him as is the case in any game, in
any powerplay.
Hes a great player, as is the
Indian side in general. We just
need to find a way of being better
than him on the day, find a way of
restricting him and getting him
out.
In the games where India have
done well, he seems to have been
the man who has been there to
be quite destructive so we have to
find a way of getting him out.
Much attention has focussed on
Englands collapse at the hands
of the Indian spinners in the open-
er.
And India batsman Virat Kholi
told England that with conditions
on the sub-continent favouring
slow bowlers, and given Englands
problems facing spin on those sur-
faces, it was a tactic that his side
will aim to employ extensively
throughout the series.
Were going to look to use spin
as our strength, said Kholi.
England obviously did struggle in
the first match against spin, so
well probably try to capitalise on
those middle overs where they
were not that sure.
That will be our strength, espe-
cially playing on these kind of
wickets in India.
Dernbach identifies Dhoni as the
man England must look to target
BY JAMES GOLDMAN
CRICKET
35
SPORT | IN BRIEF
Maiden victory for Lewis
GOLF: Englishman Tom Lewis birdied
five of the last seven holes to win his
maiden title at the Portugal Masters, in
only his third professional start. The 20-
year-old, who shot to fame by leading
The Open as an amateur in July, beat a
field that included Padraig Harrington
and Martin Kaymer.
West Brom win bragging rights
FOOTBALL: West Brom sealed a 2-0
victory in the Black Country derby
against Wolves yesterday, with goals in
either half from Chris Brunt and Peter
Odemwingie. Roy Hodgsons side moved
up to 12th in the Premier League after
the win, while Wolves fifth straight
league defeat left them just one point
off the relegation places.
French coach hits out at brats
RUGBY UNION: France rugby coach
Marc Lievremont branded a group of his
players spoilt brats yesterday, after
they defied his orders by going out to
celebrate their semi-final victory over
Wales. Id asked the players not to go
out, and I found out a few of them had
gone out, Lievremont said. Theyre a
bunch of undisciplined spoilt brats.
TOTTENHAM manager Harry Redknapp
admitted he is powerless to prevent Ledley
King from sustaining the type of muscular
injury which saw his skipper fail to com-
plete yesterdays draw at St James Park.
The visitors twice took the lead but ulti-
mately had to settle for a point when substi-
tute Shola Ameobi struck from an
improbable angle four minutes from time
to protect Newcastles unbeaten start to the
Premier League season.
A penalty from Rafael van der Vaart and a
flashing drive from Jermain Defoe sand-
wiched Demba Bas equaliser, but the
goalscoring action followed a first-half groin
injury to King which came as a blow to
Redknapp, who is still without the services
of Michael Dawson and William Gallas.
He plays on Saturday and he comes out
the following Friday and has a little jog
around and then plays on a Saturday, so
really his body is nowhere near fit, said
Redknapp. It cant be, so he is always open
to pulling muscles, getting strains, and
thats what has happened today.
Van der Vaart had stroked Spurs into the
lead when he converted from 12 yards after
Steven Taylors clumsy foul on Adebayor,
only for Ba to equalise shortly after the
break from close range after good approach
play from Jonas Gutierez.
Redknapp reacted by sending on Defoe in
place of the Dutchman and the England
striker needed just four minutes to make an
impact, turning and firing low past Tim
Krul from the edge of the penalty area.
But Newcastle under Alan Pardew are a
tough nut to crack and Ameobi rescued a
deserved point with an equally impressive
King injury adds to Spurs frustration
as Ameobi preserves unbeaten run
BY JAMES GOLDMAN
FOOTBALL
2
2
NEWCASTLE
TOTTENHAM
ED
Ameobis goal
was his first since
May
Picture: PA
DHONIS LAST FIVE V ENGLAND
Southampton, 3 Sep: 6
The Oval, 9 Sep: 69
Lords, 11 Sep: 78 not out
Cardiff, 16 Sep: 50 not out
Hyderabad, 14 Oct: 87 not out
DHONIS OVERALL RECORD V ENGLAND
Matches: 25; Runs 855; Highest Score
96; Average 45.00; Fifties 7; Catches
25; Stumpings 8.
ENGLANDS NEMESIS | MS DHONI
MCCAW FIGHTS THROUGH THE
PAIN TO SET UP FRANCE FINAL
WALLABIES HAVE NO ANSWERS TO
AWESOME ALL BLACKS: PAGE 33
Man City 8 7 1 0 27 6 22
Man Utd 8 6 2 0 25 6 20
Chelsea 8 6 1 1 20 9 19
Newcastle 8 4 4 0 11 6 16
Liverpool 8 4 2 2 11 9 14
Tottenham 7 4 1 2 13 12 13
TOP SIX
TEAM PLD W D L F A PTS
Van Persie has
seven goals in 11
games this season
Picture: GETTY
finish past Brad Friedel to maintain his
sides top four position.
I am hoping the owner is starting to get
a little bit more respect, said Pardew. I
dont think we are ever going to win every-
body over for Mike Ashley and Derek
Llambias and maybe even myself.
But at least you can logically look at it
and say we are in a much better position
than most Premier League clubs in terms of
our financial position.