Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
EC3
EC3
The update suggests that 2012 will close largely as expected in overall
terms, though 2013 has a stronger headwind than expected and that previous
expectations are likely to be too optimistic. We now expect 2013 to be
below 2012 something not seen at Aggreko for some time.
SHOULD INVESTORS BE
WARY OF AGGREKOS
PROFIT WARNING? Interviews by Cathy Adams
MIKE MURPHY NUMIS
CITYVIEWS
WOULD YOU CONSIDER BUYING
ROYAL MAIL SHARES?
Interviews by Jakob Villumsen
THE INSTITUTE of Directors said
today most of its members sup-
port a bigger Heathrow Airport as
a way to improve aviation capacity
in the UK.
More than 1,000 directors sur-
veyed by the IoD plumped for
expansion at Heathrow as the best
way to expand capacity, with 27
per cent selecting this option.
Around one in five, or 21 per
cent, said a major expansion at an
airport outside of the south east
would be their preferred option.
Fifty-nine per cent agreed that a
lack of capacity at Heathrow is
damaging inward investment in
the UK, compared to 17 per cent
who disagreed. The IoD said that
in all UK regions, more directors
supported this statement than
not.
We cannot afford to ignore the
reality that demand for air travel
in the south east will soon be
more than our airports can han-
dle, said Corin Taylor, senior eco-
nomic adviser to the IoD.
This means airport capacity
must expand, alongside other
measures to improve our competi-
tiveness in terms of taxes and
immigration processes.
By 2030, overall demand for
flights in the south east is expect-
ed to outstrip supply,
according to
Department for
Transport figures
cited by the IoD.
Regional air-
ports should be
used better to
h e l p
shoulder extra capacity in the
short-term, the IoD recommends,
with Birmingham Airport picked
out as particularly well-suited.
Nearly two thirds of IoD mem-
bers said direct flights from the
UK to emerging markets are likely
to be important to their business
in the next decade, flagging up a
desire among businesses for new
routes in the short-term.
The IoD repeated its criticism of
Air Passenger Duty, a levy imposed
on all passengers entering and
leaving the UK. The group wants
the tax to be frozen, a step it says
will make the countrys airports
more attractive for passengers and
potential investors.
The government has commis-
sioned a report into the vari-
ous options for beefing up
Britains air links, but it is
not due until 2015.
Directors want to see
new Heathrow runway
BY MARION DAKERS
RITZ ACCUSED OF PAYING NO CORPORATION TAX IN 17 YEARS
The Ritz hotel has not
paid corporation tax
since 1995 thanks to
its use of legal
loopholes, according
to last nights episode
of the BBCs
Panorama
programme. The
landmark building is
owned by an offshore
trust set up by the
Monaco-based
Barclay brothers, who
yesterday said they
do not have any
direct involvement in
the business. We
are not responsible
for corporate taxes in
the UK and are
unaware what tax is
paid on the Ritz, Sir
David Barclay said.
The governments transport
secretary Patrick McLoughlin
ENERGY watchdog Ofgem has
approved billions of pounds
of investment by energy
companies to overhaul the
UKs gas and electricity grid,
reducing initial overall
spending plans by 16 per cent
to 2021.
The proposals will
nevertheless add 15.10 to the
average yearly fuel bill by
2021, Ofgem said.
Energy companies initially
proposed spending 45.4bn on
upgrading and maintaining
the country's energy networks
until 2021, which would be
clawed back through higher
energy bills.
Ofgems latest proposal,
which aims to curb energy
spending plans in order to
reduce the impact on utility
bills, reduces that figure by 16
Energy grid overhaul to add
15 a year to household bills
BY CITY A.M. REPORTER per cent to 38.2bn.
Within the 38.2bn, 24.4bn
will go towards modernising
the energy grid, up 2bn
compared with initial
proposals made in July
following a row over the
budget.
Initial proposals made by
the regulator were slammed
for being too low by the
country's biggest energy
distributor, National Grid, in
July. The FTSE 100 company
will respond to Ofgems latest
proposals in March.
The spending plan comes as
the government-sponsored
Fuel Poverty Advisory Group
warned that high utility bills
will push 300,000 more homes
into fuel poverty this year.
The term fuel poverty means a
household spends more than
ten per cent of their income
on heating.
10
NEWS
cityam.com
TUESDAY 18 DECEMBER 2012
IN BRIEF
Hunting warns of dimmer outlook
nEnergy services provider Hunting
closed down more than seven per cent
yesterday, as it warned the short term
outlook was increasingly cautious in
its operating markets. Hunting said it
was seeing a switch from natural gas
to liquids drilling in its drilling tools
unit, although the London-listed
company added that global offshore
drilling continued to improve. Despite
the gloomy outlook, it says it is still
trading in-line with full year forecasts.
New contract splash for Rolls
nBlue-chip Rolls-Royce has netted a
contract with the Finnish Navy to
supply water jets to power high-speed
landing craft. The contract is for 12
craft to be built by the Marine
Alutech shipyard in Teijo, Finland
and will enable the vessels to
manoeuvre more effectively in the
Scandinavian countrys shallow
coastlines. The 19-metre long vessels
will enter service in mid-2014, the
company said.
TUESDAY 18 DECEMBER 2012
11
NEWS
cityam.com
C
ENTAMIN shares roared back
to life yesterday as the gold
miner announced it had
restarted exports of the yellow
metal. But even a jump of 21 per
cent did not restore the companys
share price to the level it was at
before it was forced to announce
the suspension of operations on 13
December. Shares are well down on
their October highs and still around
their lowest point for the year.
It is easy enough to see why.
Centamins principal asset, the
Sukari gold mine, is in Egypt. The
firms share price climbed steadily
from 2009 to the end of 2010. Then
came 2011s Egyptian revolution,
since when, apart from a brief
improvement this autumn,
Centamin has fallen steadily.
It is not gold demand that is
causing the problem. Since 2009,
the price of gold has doubled. This
is about Egyptian politics.
That is not to say Centamins
investors are callous enthusiasts for
Hosni Mubaraks old regime, but it
is a clear verdict on the pharaonic
ambitions of President Mohamed
Morsi, whose November power-grab
brought fresh rebellion to the
streets of Cairo. Now the country
has been left in limbo again by the
arguments over the new
constitution, drafted by an Islamist-
dominated assembly. As the
Islamists claim victory in the
national referendum and their
opponents claim fraud, there is no
sign of an easy resolution.
For all the initial hope of a liberal
Arab Spring, Egypt is clearly at best
facing a long, slow march out of
disorder towards functioning
democracy. That makes investment
in the country in the short-term
look anything but appealing.
Centamin suddenly found itself
without reliable diesel fuel supplies
and unable to get its gold past
customs without approval from the
minister of finance. It is not its
fault, but not surprising that such
unpredictability drives investors to
get their money out of its shares.
BOTTOM
LINE
MARC SIDWELL
Centamin counts the cost of Egypts unrest
BRITISH packaging company DS
Smith yesterday insisted its 1.3bn
takeover of Swedens SCA
Packaging is on track, despite
launching an investigation into
allegations of accounting
irregularities at its new
acquisition.
FTSE 250-listed DS Smith took
control of its competitor in June,
but the completion accounts have
still not being signed off and the
firm is understood be disputing
the final purchase price. Reports
suggest DS Smith is seeking a
180m (146m) discount on the
original figure.
DS Smith says 1.3bn deal not
affected by accounting probe
BY JAKOB VILLUMSEN Clearly, there is a negotiation in
an acquisition like this. You start
by disagreeing, and then you meet
at a point where you agree. It is
completely normal, a spokesman
for DS Smith told City A.M.
He said the current schedule is
ahead of prior expectations.
Berkshire-based DS Smith also
confirmed that last month it called
in forensic accountancy firm Alix
Partners to investigate allegations
of financial irregularities at SCA
following an anonymous tip-off.
Yesterday it said the
investigation found the allegations
were without substance. Despite
this, the findings were forwarded
to the Serious Fraud Office.
NORILSK Nickel named longtime
co-owner Vladimir Potanin as its
chief executive yesterday under a
Kremlin-inspired deal to end a
boardroom war at the worlds top
nickel and palladium producer.
Roman Abramovich will take
control of a 20 per cent voting
stake and act as a buffer between
Potanin and rival Oleg Deripaska,
who owns a share in Norilsk
Oligarchs make peace over the
worlds largest nickel producer
BY HARRY BANKS through UC Rusal, the worlds
largest aluminium producer.
When the new lineup of
shareholders gets used to each
other, confidence will grow that
we now feel is now lacking,
Potanin said, paying tribute to the
role to be played by Abramovich,
an ally of President Vladimir Putin.
Potanin plans to stay for up to
two years. The peace deal will last
for 10 years. Core shareholders
agree to keep their stakes for five.
Vladimir Potanin says that he will stay as chief executive of Norilsk for up to two years
OIL major BP yesterday announced it
was to sell its interest in a North Sea
gas field to SSE for $288m (178m) in
cash.
Completion of the deal, to sell BPs
non-operated 50 per cent stake in the
Sean gas field, is expected in the first
half of next year. Sean, located in the
Southern North Sea, is currently
operated by Shell, and produces
around 18,000 barrels of oil equiva-
lent a day.
Trevor Garlick, regional president
of BP North Sea, said yesterday: The
divestment of BPs interest in the
non-core, non-operated Sean field is
consistent with our strategy of focus-
ing on high value assets with long
term growth potential.
The British oil behemoth plans to
invest $10bn over the next five years
in the North Sea. BPs strategy to
focus on the region has included the
sale of the Wytch Farm oil field in
Dorset, the Southern Gas Assets and
the sale of its stakes in the Draugen,
Alba and Britannia fields.
Last month, BP announced it was to
divest its interests Harding, Maclure,
Braes and Devenick to Abu Dhabi
state oil firm TAQA.
Jefferies advised BP on this transac-
tion, with Neil Schroeder leading the
team from the bank.
BP sells stake in
North Sea gas
field for 178m
BY CATHY ADAMS
INDUSTRIAL materials supplier
Cookson yesterday confirmed that
its demerger had become effective,
splitting the company into two
separate divisions and getting rid of
the Cookson name.
In line with the terms of the
demerger, Cookson shares were
cancelled yesterday morning.
As proposed at the start of
November, the FTSE 250 listed firm
said it would spin off its
performance materials division into
a new speciality chemicals company
called Alent. Its shares are due to
begin trading on the London market
tomorrow morning.
The rest of the Cookson Group,
made up largely of the engineered
ceramics division, has been renamed
Vesuvius and its shares were
admitted to the London Stock
Exchange yesterday morning.
Alent and Vesuvius, which are
likely be FTSE 250 companies, will
have separate strategic, capital and
economic characteristics as well as
different management teams.
Existing Cookson shareholders
will receive one share in each
Vesuvius and Alent for each share
they already hold in the company.
Cookson Group
split takes
effect on LSE
BY CATHY ADAMS
BP PLC
17Dec 11 Dec 12Dec 13Dec 14Dec
425.0
427.5
430.0
432.5 p
427.00
17Dec
SWEDISH clothing giant, Hennes &
Mauritz yesterday posted a smaller
than expected drop in like-for-like
sales for November compared to
same month last year, easing fears of
large markdowns to reduce unsold
stock amid weak demand in key
markets.
The retailer said local-currency
sales at stores open a year or more
shrank one per cent in the last
month of its financial year.
This was better than the three per
cent drop predicted by analysts
following a drop of five per cent in
October.
There had been some concern
among analysts because industry
data showed that clothing sales in
Germany, H&Ms single biggest
market, were down five per cent in
November.
H&M, the worlds second-biggest
clothing retailer behind Zara owner
Inditex, has the bulk of its business
in Europe, where a sovereign debt
crisis and austerity measures have
dampened demand.
Turnover in the full September to
November quarter grew five per
cent from a year earlier to 32.5bn
Swedish Krona (3bn), matching
expectations.
Retailer H&Ms
like-for-likes
ease worries
BY A CITY A.M. REPORTER
APPLE sold more than two million
iPhone 5s in China in its first week-
end on sale in the country, it
emerged yesterday, but the company
was knocked by its share price sink-
ing during the days trading.
Despite the record launch in China,
which is expected to become
Apples biggest market in
the near-future, Apple stock
floated around $500 before
recovering later on.
A close below the coveted
$500 mark would be a psy-
chological blow for the firm,
that has suffered from a
sinking share price since
peaking in September.
The company had taken a
hit earlier this month when
research firm IDC said Apple
had slipped down to sixth in
the list of Chinas top smart-
phone sellers.
China snaps up
iPhone 5s but
shares wobble
BY JAMES TITCOMB
Apple was hit yesterday by analyst
downgrades. Citi downgraded the
stock from buy to neutral, while
Jefferies analyst Peter Misek said the
company had cut orders of the
iPhone 5 due to weaker sales, and
that manufacturing plans for the
iPad had also been reduced. Apple
has lost more than 25 per cent of its
market value since mid-
September
Nonetheless, yesterdays
announcement from Apple
proved that there is still
high demand for the compa-
nys products in the worlds
second-biggest economy.
Customer response to
iPhone 5 in China has been
incredible, setting a new
record with the best first
weekend sales ever in China,
Apple boss TimCook.
Imagination finally lands chip
firm MIPS after bidding frenzy
BRITISH chip designer Imagination
Technologies has finally won the
bidding for US-based company MIPS,
in a deal that will speed up its entry
into the fast-growing processor
industry.
The company agreed a $100m
(61.7m) price for MIPS yesterday,
and bidding rival CEVA said it
would not up its offer.
The agreed price comes after a
series of bids from the two parties.
Imagination had agreed a $60m
sum for MIPS last month, but then
had to bid $80m after CEVA waded
BY JAMES TITCOMB
in. CEVA then offered $90m last
week. However, the company backed
down after Imaginations latest bid.
Further increasing the purchase
price would not meet our financial
objectives, CEVA chief executive
Gideon Wertheizer said yesterday.
The deal, which is expected to
complete in the first quarter of next
year, will be paid for in cash.
It follows the majority of MIPSs
value its patent warchest being
sold for $350m to a consortium
including Cambridge technology
company ARM Holdings.
Imagination will use MIPSs
operating business to diversify its
offering as it moves into the
processor market dominated by
ARM. Shares fell yesterday on
warnings the move could be risky.
Imagination Technologies Group PLC
17Dec 11 Dec 12Dec 13Dec 14Dec
400
425
450
475 p
383.00
17Dec
The iPhone 5 sold two million
in Chinas first days of sales
TUESDAY 18 DECEMBER 2012
13
NEWS
cityam.com
n Imagination, which designs microchips
and makes royalties on sales of chips that
use its designs, is now paying almost
double what was agreed for MIPS last
month. The price comes after two rival
bids from California chip designer CEVA,
which now says it will not bid further.
n However, in buying MIPS, Imagination
is not buying a successful, healthy
business the company made a $9m
(5.6m) loss in the year to July. It is, in
fact, signalling a move into a new market,
which some analysts have flagged as a
risky manoeuvre.
n While Imagination is generally seen as
the market leader in smartphone graphics
chips, which generate what is displayed
on the screens of devices such as Apples
iPhone, it has a much smaller presence in
the processor territory dominated by
another British chip designer
Cambridge-based ARM Holdings.
n Processors are the brain of a
computer they crunch the numbers on
applications, and are present in electronic
devices from smartphones to televisions
to car dashboards. Imagination part
owned by Apple is signalling a move
into this area with the MIPS deal.
n Imaginations chief executive Hossein
Yassaie has outlined processors as an area
of extraordinary growth in the next few
years, as more everyday objects, such as
fridges and central heating systems,
become connected to the internet and
thus need computing power.
n Buying MIPS which has a history in
processors would speed this transition
up, although Yassaie was determined to
make Imagination a processing
powerhouse even if the MIPS deal had not
gone through. Experts have questioned
the viability of this move, with more
established competitors in this space.
WHY IS IMAGINATION SO KEEN ON MIPS?
Luxury lingerie firm Agent Provocateur saw sales increase 18 per cent in the year to 26
March, with figures boosted by shop openings in cities such as Amsterdam, Madrid and
Rome. Turnover rose from 26.7m to 31.4m, while net earnings grew from 3.3m to
4.1m, an increase of 24 per cent on the previous year.
AGENT PROVOCATEUR FIGURES LIFTED
IN BRIEF
Eurozone trade surplus rises
nThe Eurozone achieved a 10.2bn
goods trade surplus with the rest of
the world in October, compared to
9.5bn the previous month,
according to official statistics body
Eurostat. Seasonally adjusted exports
fell 1.4 per cent while imports rose
0.6 per cent. For the 27-member EU,
its goods trade deficit narrowed
slightly to 12.5bn. Meanwhile, hourly
labour costs in the euro area rose two
per cent in the year to the third
quarter.
Draghi defends banking union
nNew European Central Bank powers
to oversee Eurozone banks will help
restore confidence in the sector and
revive interbank lending, boss Mario
Draghi said yesterday. The single
supervisory mechanism will contribute
to restoring confidence in the banking
sector across the euro area," he said.
The new body will automatically
oversee around 150 of the currency
blocs 6,000 banks to start with, and
will have authority to intervene if
others show signs of trouble.
IMF deadline passes for Argentina
nA deadline for the Argentinian
government to provide more accurate
economic data to the International
Monetary Fund (IMF) passed last
night, with the country facing the
prospect of being expelled from the
group. IMF chief Christine Lagarde had
warned in September that Argentina
could be show a red card by the
global support mechanism if it failed
to submit satisfactory evidence over
its rates of growth and inflation.
THE UK population has grown at its
fastest pace since the post-war baby
boom in the past decade, according to
the 2011 census figures out yesterday.
On census night, there were
63,181,775 people living in the United
Kingdom, the Office for National
Statistics said.
The country has gained a net 4.1m
people, or almost seven per cent, on
the previous survey in 2001 a rate of
growth beaten only by the nine per
cent population explosion after the
Second World War.
Over the last 100 years, the UK popu-
lation has increased by just over 50 per
cent, the figures showed.
London attracted much of this
growth, with the citys headcount ris-
ing 12 per cent to 8.17m people in the
decade.
Islington is the most densely popula-
tion part of London, with 138.7 people
per hectare, compared to an average
across the 33 boroughs of 52 per
hectare.
There are also more people than ever
living in Scotland, after its population
rose 4.4 per cent to 5.3m.
UK population
growth fastest
since the 1950s
BY MARION DAKERS
However, the number of Scottish
over-65s grew at an even faster pace,
rising from 15.9 to 16.8 per cent of the
total population.
In the UK as a whole, the proportion
of over-65s was steady at 16 per cent,
rising from 9.4m to 10.4m people.
Around 50.4 per cent of the popula-
tion is female, thanks to their slightly
higher life expectancy.
In separate figures out yesterday, the
ONS revealed that the average British
lifespan was 85 for men and 89 for
women in 2010. Since 1960, the aver-
age man has gained 10 years and the
average woman eight years. The ONS
used the modal age at death for these
sums, stripping out infant mortality.
UK population in the last 100 years
2011 2001 1991 1981 1971 1961 1951 1941 1931 1921 1911
20
30
10
0
40
50
60
70 Residents(Millions)
Nocensus
takenin
1941
Males
Females
S
O
U
R
C
E
: O
N
S
MORTGAGE lenders will focus
their attention on the safer, low
loan-to-value (LTV) end of the
credit market during 2013,
research showed yesterday.
Lenders will conserve their
precious capital and boost their
lending in the remortgage market,
which will grow a quarter from
around 310,000 transactions this
year to almost 400,000 next year,
according to data from LMS, a
conveyancing firms.
Chief executive Andy Knee put
this down to the Funding for
Lending Scheme, which he said
First-timers to be kept locked
out of 2013 mortgage market
BY BEN SOUTHWOOD was lifting activity at the low LTV
end of the market.
Amidst a difficult market for
funds, and in the tough economic
climate, prospective first-time
buyers are forecasting that they
will need even longer to raise a
deposit, according to figures from
the Building Societies Association.
Over a quarter of those who
hope to buy their first property
predict they will need 10 years or
more to raise a deposit, versus just
26 per cent who say they need
three years or less. By contrast,
prior to the credit crunch under a
third thought they would need
more than three years.
TUESDAY 18 DECEMBER 2012
15
NEWS
cityam.com
All I want for
Christmas
is not to be
hit anymore
This Christmas, most children will look
forward to getting toys. But others,
like Emma, will be wishing more than
anything, for their hurt to end.
Will you be a Santa for the NSPCC
and send a special Christmas gift of
4 to help us support a child who
needs us most?
Photograph posed by model Getty Images. Emmas story draws on real life examples from NSPCC services, but does not describe a specic case. Texts will be charged at 4 plus your standard rate.
A minimum of 3.97 will be received by the NSPCC. By using this service you agree to being contacted by the NSPCC by telephone or SMS. Registered charity numbers 216401 and SC037717.
Text EMMA to 70744 and give 4 Be a S NTA for the NSPCC
LMS says loans with a low loan-to-value ratio will be easier to get hold of during 2013
IN BRIEF
Dods expands political portfolio
nPolitical information group Dods
has acquired the owner of Total
Politics magazine, Biteback Media,
along with Edinburgh-based political
publisher Holyrood Communications,
for a total of 1.46m from Political
Holdings. Dods, which runs the
website Politics Home, expects buying
Holyrood will increase its presence in
Scotland. Dods is buying from Lord
Ashcrofts Political Holdings.
WPP continues China growth
nAdvertising giant WPP has
expanded its reach in China with the
acquisition of entertainment
marketing agency Filmworks China.
The deal, for an undisclosed sum,
follows the creation of a chief
executive role for WPP China. The
boss of the worlds largest advertising
firm, Sir Martin Sorrell, expects China
to overtake the UK as WPPs second-
largest market soon.
Kentz nets three Iraq contracts
nFTSE 250-listed engineer Kentz has
snapped up three contracts in Iraq
worth $55m (34m) through its
technical support services business.
Over the next three to four years,
Kentz will be involved in the
development of in-plant process
facilities and infrastructure on
upstream facilities in Basra and
Baghdad, to boost oil and gas
production capacity.
CHINA-focused Fortune Oil yesterday
said it is to sell its natural gas busi-
ness to China Gas Holdings for
$400m (247m).
The deal, to be approved by share-
holders, will net Fortune Oil $200m
in cash on completion of the transac-
tion and a further $200m as a
deferred consideration, which could
be taken as shares.
The oil company also has the right
to nominate two directors to China
Gass board.
Fortune Oil held an 18.4 per cent
stake in China Gas as of 16
November, primarily through a joint
venture formed last year with one of
the company's founders.
London-listed Fortune Oil said yes-
terday that both companies gas
assets are complementary, and it
marks a unique opportunity for it
to become a large shareholder in
China Gas.
China Gas snaps
up Fortune Oil
gas business
BY CATHY ADAMS
The company intends to be a long
term shareholder in China Gas so as
to benefit from the potential growth
in this sector in China over the medi-
um term, the oil firm added.
Analysts at VSA Capital yesterday
hailed the sale. An investment in the
rapidly growing Chinese gas market
is likely to grow substantially over the
next 10 years and thus should trade
at a substantial premium to Western
gas distribution companies, they
said yesterday in a note.
Yellow Pages owner Hibu falls
over worthlessness warnings
SHARES in Hibu, the stricken owner
of the Yellow Pages, plummeted
yesterday as management
confirmed that the companys stock
could become completely worthless.
The company, which was
formerly known as Yell, announced
yesterday it had obtained a request
to negotiate a debt restructuring
with a group of creditors that own
hundreds of millions of pounds of
Hibu debt from 2009.
The company said it had won
various waivers and an
amendment including the ability
to negotiate with the lenders on a
capital restructure.
It said a number of capital
structure options are being
BY JAMES TITCOMB
considered but that all of those
options are likely to result in little
or no value being attributed to the
groups ordinary shares.
Although it had made this
warning before, shares in the
company still fell by more than 13
per cent yesterday, following a pop
last week.
Standard & Poors, the ratings
agency upgraded the companys
debt last Wednesday, which saw
stock rise around 50 per cent.
The company is currently in the
process of restructuring various
tranches of debt, which dwarf its
9.3m market capitalisation.
As Yell, Hibu faced continually
declining revenues from its core
Yellow Pages business, and it
rebranded itself earlier this year as
it pushed to become a digital-
focused directory business.
However, the shift has failed to
pay off and Hibus six-month
revenues crashed from 69m to
7m in the period to the end of
September. Since rebranding, shares
have fallen by two-thirds.
Fortune Oil PLC
17Dec 11 Dec 12Dec 13Dec 14Dec
11
10
9
12
13
14 p
10.75
17Dec
Hibu PLC
17Dec 11 Dec 12Dec 13Dec 14Dec
0.35
0.30
0.40
0.45
0.50 p
0.39
17Dec
Fortune said that both firms gas assets were complimentary
TUESDAY 18 DECEMBER 2012
16
NEWS
cityam.com
Appendix 1
Section 17 Licensing Act 2003
Licensing Act 2003
Application for a new Premises
Licence
Notice is hereby given that (1) __________________________
has applied to the City of London on (2) __________________
for a new premises licence to use (3) ____________________
__________________________________________________
for the provision of (4) ________________________________
__________________________________________________
__________________________________________________
A record of this application is held by the City of London and
can be viewed by members of the public online by visiting
www.cityoflondon.gov.uk or by appointment at the offices of
City of London licensing authority, Walbrook Wharf, 78-83
Upper Thames Street, London EC4R 3TD.
Any person wishing to make a representation in relation to this
application must give notice in writing to the licensing authority
at the address shown above, giving in detail the grounds of
objection by (5) _____________________________________
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any such representation when considering the application. It is
an offence, under section 158 of the Licensing Act 2003, to
knowingly or recklessly make a false statement in or in
connection with an application for premises licence and the
maximum fine on being convicted of such an offence is 5000.
FABIO ANDREA MARAZZI
05th DECEMBER 2012
PICCOLO BAR,
7 GRESHAM STREET, LONDON EC2V 7BX
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Morgan Stanley poked by a $5m
fine for Facebook deal influence
MORGAN Stanley, the lead
underwriter for Facebooks initial
public offering (IPO), will pay a $5m
(3m) fine to settle charges that its
bankers improperly influenced its
research analysts when the internet
company went public.
Massachusetts top securities
regulator, William Galvin, charged
yesterday that Morgan Stanley
helped Facebook disclose sensitive
financial information selectively,
perpetuating what he calls an
unlevel playing field between Wall
Street and Main Street.
BY HARRY BANKS
Morgan Stanley has been criticised
since the social media company
went public in May for having
revealed revised earnings and
revenue forecasts to select clients
before the media companys $16bn
IPO. A Morgan Stanley spokeswoman
did not immediately return a call
seeking comment.
Galvin, who has been aggressive in
policing how research is distributed
on Wall Street ever since investment
banks reached a global settlement in
2003, said the bank violated that
settlement. He fined Citigroup $2m
over similar charges in late October.
Massachusetts says that a senior
Morgan Stanley banker helped a
Facebook executive release new
information and then guided the
executive on how to speak with Wall
Street analysts about it.
The banker was not allowed to
call research analysts himself, so he
did everything he could to ensure
research analysts received new
revenue numbers which they then
provided to institutional investors,
Galvin said in a statement.
Retail investors were not given any
similar information, Galvin said,
saying this case illustrates how
institutional investors often have an
edge over retail investors.
THE INCREASING levels of
interest in nanotechnology have
led technology group Oxford
Instruments to spend up to $80m
(49.4m) on buying a US-based
microscope manufacturer.
The deal for Californias
Asylum Research, announced by
Oxford Instruments yesterday,
significantly increases [the
companys] footprint in the
nanotechnology space, chief
executive Jonathan Flint said.
The acquisition is the latest
step in the firms plan to increase
revenues by 14 per cent a year
over the next two years.
Asylum Researchs technology
Ox Instruments eyes big gains in
nanotech with microscope deal
BY JAMES TITCOMB
scans items thousands of times
too small for the naked eye, and
represents them visually. The
companys products are in high-
demand in the fast-growing
nanotechnology sector, which
now accounts for around half of
Oxford Instruments revenues.
The deal will be paid for in
cash, with $32m up front
followed by $48m over the next
few years depending on
performance.
Asylum Research saw earnings
of $1.1m on revenues of $19.6m
last year, though Oxford
Instruments said the deal which
will be done by the end of the
year will see Asylums earnings
improve.
Paul Staples, head of UK corporate nance
at BNP Paribas, led the team on the sale of
Fortune Oils gas business to China Gas
Holdings. Staples, who spent the majority of
his early career at Schroders and Citigroup,
also sits on BNP Paribas executive commit-
tee. He joined the bank in 2005.
The banker has presided over a signicant
period of expansion for the advisory busi-
ness in London, with a particular focus on
major cross-border deals.
BNP Paribas has gured prominently in
recent years within the energy & natural
resources sector, advising EDF on its offer
for British Energy in 2008 and GDF on its
offer for International Power in April this
year.
Earlier this year, Staples led the team advis-
ing Ferrovial on its successful sale of
Edinburgh Airport.
He is also a chartered accountant and grad-
uated with a rst class honours degree in
history from Trinity College, Cambridge.
Staples is working alongside colleague
Kenny Yau from the London ofce on the
transaction. Kenneth Quinn is also working
on the deal in the Hong Kong ofce.
Oriel Securities also had a role on the deal,
with Michael Shaw and Stewart Wallace
working on the transaction.
ADVISERS BNP PARIBAS
PAUL STAPLES
BNP PARIBAS
London is still the most exciting
place for food bar none,
Gunewardena says. Business at both
ventures has been good so far and
hotel bookings have also been robust.
We are even more convinced, given
the success of the South Place hotel,
that in the future we will develop a
nice boutique hotel business to sit
alongside our restaurants, he adds
confidently.
But what about the four years of
recession, jobs cuts in the financial
services sectors and the consumer
spending squeeze? The triple dip
shortly to be quadruple dip? he
mocks and insists there isnt a better
time to push ahead with projects.
Gunewardena has worked with Sir
Terence since the start of the business
in 1991, when the design guru left
retailing behind for eating out.
D&D, which has 30 restaurants in UK
and overseas, will open in Istanbul and
in Leeds next year.
We are building businesses we hope
will last from 10 to 20 years. You are
building restaurants to last through
several business cycles so it shouldnt
matter when you build them... You
have got to be able to survive the bad
as well as the good times, he said.
Hopefully for Gunewardena it will
just be good times ahead, with the
right choice of wine to celebrate.
tal needed to drive further restaurant
openings overseas and in London.
D&D has powered ahead with open-
ings in the capital, particularly in the
City, where Gunewardena believes
there is a growing appetite for a more
dynamic restaurant scene.
In September, D&D opened the Old
Bengal Warehouse, a restaurant ven-
ture off Bishopsgate on the site of an
old East India Company warehouse.
Two weeks later it also opened the
South Place Hotel (see review below)
marking the groups first hotel since it
developed the Great Eastern near
Liverpool Street in 2000, now owned
by Hyatt Hotels. And the group has no
intention of slowing down, with
another venture shortly to be
announced in the New Year.
The chairman and chief executive of D&D is building businesses for the long term
TUESDAY 18 DECEMBER 2012
17
INTERVIEW
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CV: DES GUNEWARDENA
Age: 55
Background: Born in Kandy, Sri Lanka
until the age of seven when his family
moved to the UK
Education: Wimbledon College,
London; studied economics at Bristol
University; qualified as a chartered
accountant with Ernst & Young in 1981
Career:
1978 to 1984: Worked at Ernst & Young
where he qualified as an accountant.
1984-1989: Joined Heron International
where he was responsible for financial
planning
1991: Joined Conran Holdings
1995: Took over as chief executive of
Conran Restaurants in 1995
Family: Married, with two children
Lives: Wimbledon
Hobbies: Tennis, skiing and cricket
D&D owner plans
a dynamic future
D
ES GUNEWARDENA peers into
his wine glass and wrinkles his
nose. The chairman and chief
executive of D&D London has
invited me for lunch at the Angler, the
groups new seafood restaurant at
South Place Hotel in the City where
the sommelier is waiting for a verdict
on the wine.
Gunewardena, impeccably dressed
in a dark navy suit and a tieless white
shirt, has asked the sommelier to sur-
prise him but looks unconvinced by
the choice. He declares it too appley
before the sommelier disappears to
brush the dust off another bottle.
This attention to detail befits a man
running some of Londons most ele-
gant restaurants, including Coq
dArgent and The Grand Caf at the
Royal Exchange. And it also speaks vol-
umes about the far-reaching ambi-
tions the Sri Lankan-born 55 year-old
has for the business.
Gunewardena is in the process of
orchestrating the sale of a large chunk
of the restaurant group in a deal that
will pave the way for the next stage of
expansion.
LDC, the private equity arm of Lloyds
Banking Group, is the frontrunner to
acquire Sir Terence Conrans 51 per
cent stake, plus the 18 per cent owned
by private equity firm Caird Capital.
Gunewardena, however, has no
intention of cashing out just yet.
Management, led by himself and man-
aging director David Loewi, will retain
the 31 per cent stake they acquired in a
management buy-out in 2006.
It is a momentous period for the
group. The sale will effectively see Sir
Terence relinquishing his control of
the empire he founded two decades
ago. And it ushers in a new era for the
business under Gunewardenas con-
tinued leadership.
He wont say more about the deal
until the ink is dry expected to be
early in the New Year except that a
new investor will inject the fresh capi-
We are building
restaurants to last
several business
cycles... it shouldnt
matter when you
build them
20
TUESDAY 18 DECEMBER 2012
DOUGLAS CARSWELL
Politicians are powerless to curb
our shrinking corporate tax base
But what we are witnessing is not
merely a matter of clever corporate
lawyers exploiting tax loopholes. If it
was, then ask yourself why no govern-
ment has shut them.
Politicians still see this problem in
terms of tax rules that need changing.
But its actually a case of a changing
tax base. The tax base, once so solid
and dependable, is becoming more
fluid.
A generation or two ago, wealth was
made when things were manufac-
tured or mined. If the state wanted to
raise revenue, it needed to tax factories
what they produced and those who
worked in them.
But in the digital economy, added
value increasingly comes not merely
from making things, but from the
added intellectual value.
In 1980, the Ford Motor Company
had half a million employees in the US
paying tax; Bethlehem Steel over
100,000. Today Google, with a market
capitalisation five times that of Ford,
has a mere 17,000 on the payroll.
Bethlehem Steel does not exist.
Not much of a tax base, is it?
In the modern economy, the high-
value bit, to put in crudely, lies in intel-
lectual property rights. Supposed tax
avoidance is really a debate over which
tax jurisdiction intellectual property is
being exploited in. Holland or the UK?
Europe or the US?
As tax officials soon discover, when
trying to close those mythical loop-
holes, intellectual property is mobile.
You might struggle to move a mining
operation or factory from one tax
regime to another. Intellectual proper-
ty can move as quickly as an email.
Louis VIXs tax minister, Jean
Baptiste Colbert, once described taxa-
tion as the art of plucking the goose
to obtain the largest amount of feath-
ers with the smallest amount of hiss-
ing. The trouble for latter day
Colberts is that, in the modern econo-
my, more and more geese are able to
take flight.
What the politicians would like us to
see as evidence of tax avoidance is in
fact evidence of tax migration. In the
digital economy, it will happen more
and more no matter what the tax
rules say.
Blaming those who move intellectu-
al property from one jurisdiction to
another for not paying enough tax is a
bit like blaming migrating birds for
wanting to avoid winter. Only an odd-
ball might hold it against them.
Of course tax officials feel frustrated.
Treasury officials would like a general
anti-tax avoidance rule. Instead of tax-
ing businesses on the basis of pre-
defined rules, which specify how
much tax is payable and under what
circumstances, this kind of arbitrary
arrangement would enable tax collec-
tors to bill firms what they think they
ought to be paying.
Perhaps this draconian and ill-con-
sidered measure merely underlines
how no set of tax rules, however com-
plex, can get to grips with the fact that
the source of wealth in the digital
world intellectual property can
move.
Unless governments are prepared to
embrace 1950s Albania-style isolation,
businesses will inevitably find it easier
to transact business in a way that
reduces their tax bill.
But if the tax base turns out to be a
river that can flow away, you ask,
how are governments going to man-
age to raise revenue to pay for all the
things that governments do?
How indeed. Perhaps they wont.
Without a dependable tax base, maybe
the era of Big Government is over.
Douglas Carswell is Conservative MP for
Clacton.
consume, so the transfers raise
aggregate demand. Increasing state
benefits is therefore not only morally
right, but economically beneficial.
But what if the exact reverse is
true? What if increasing peoples
income streams through transfers
actually increases unemployment?
Redistribution Recession, a recent
book by professor Casey Mulligan,
concluded that redistributive
interventions in 2008-09 account for
half of the large fall in the USs
labour participation rate. As
eligibility for programmes like food
stamps and unemployment
insurance increased, the annual
average payoff for not working rose
from $10,000 (6,172) in 2007 to
$16,000 in 2009, falling back to
$14,000 in 2011. This was inversely
related to the path of working hours.
And the fall in working hours was
only partly a demand issue many
industries maintained output, but
simply substituted away from labour
to other production inputs.
By discouraging work, hand-outs
make labour more expensive by
reducing its supply. The unemployed,
or those in low paid jobs, face higher
marginal tax rates when deciding
whether to work more. They have to
weigh up the benefit of any extra
income against the costs of paying
taxes and losing benefits. Mulligan
finds many examples of Americans
whod now be worse off in work.
Iain Duncan Smith is grappling
with similar issues in the UK. The
present welfare system can lead to
marginal deduction rates as high as
96 per cent, meaning that some keep
just 4p of every extra 1 earned.
500,000 families see rates of well over
80 per cent.
The introduction of the universal
credit next year aims to streamline
the myriad of different benefits. It
will provide significant incentives for
the unemployed to find jobs, by
treating in and out of work benefits
the same. But those already in work
could still face marginal tax rates,
including benefit withdrawal, of well
over 70 per cent.
Its important to understand,
therefore, that welfare entails a
trade-off. Providing a more generous
safety net for a decent standard of
living for the poor may be the right
thing to do. This, of course, raises
their static living standards and
affects the composition of goods
demanded. But we shouldnt forget
that the same policy harms
incentives and makes it harder for
poor families to earn more money in
the future.
Ryan Bourne is head of economic
research at the Centre for Policy Studies.
FRONTLINE
ECONOMICS
RYAN BOURNE
The welfare trade-off: Why raising benefits doesnt boost the economy
MORNING UPDATE
A.M.
21
TUESDAY 18 DECEMBER 2012
The Forum is open for you to take part. Got a sharp comment on
one of todays columns? Do you have another subject you want
to share your opinion on? We want to hear your views.
Email theforum@cityam.com or comment at cityam.com/forum
Banking union
[Re: European banking union will be no
friend of vibrant financial services,
Thursday]
If Europes banks are going to be regulated
under one umbrella, the financial sectors of
smaller countries will likely find themselves
stifled. The inclination for a European
regulator will be to impose the level of
regulation that is already in place in the
most regulated often largest EU
countries. European regulations have
already had the same effect on business
more broadly. Big business likes the EU
because restricted markets prevent smaller
firms from challenging their dominance.
And so the sooner Britain is out of the EU,
the happier I will be.
HelenaPiggott
British retail
[Re: As more Christmas shoppers chose to
buy online, can the British high street
survive?, yesterday]
Theres no such thing as the British high
street. As anyone will tell you, smaller
independent shops either struggle to cling
on to decaying residential areas or thrive in
gentrified and prosperous parts of the
country. Otherwise, most people either shop
online or go to large complexes like
Westfields. But there doesnt need to be
some artificial division between online and
instore. Some firms are already adapting.
Its interesting to note that Argos is radically
changing its retail experience by getting rid
of physical catalogues in its shops, and using
web-based panels instead.
MatthewRichards
S
UPERSTORM Sandy was 2012s
reminder of the damage
caused by natural disasters. It
hit within a few of months of
the anniversary of the Thai
floods in 2011, which killed over 800,
made millions homeless and
inundated the business parks that
underpin the countrys economy.
Knock-on global supply chain
disruption forced Honda and Acer to
cut production, and the World Bank
put the total cost at $45bn (27.7bn).
Only $12bn was insured.
In 2011, it was an extraordinary year
for natural catastrophes, and Im
increasingly uneasy about how well-
prepared governments and business-
es are to face disasters. Their
vulnerability was highlighted by a
recent Lloyds global underinsurance
report. Analysis by the Centre for
Economic and Business Research
thew up an alarming underinsurance
deficit of an annualised $168bn in 17
out of 42 countries eight of them in
Asia, a region many assume will lead
an eventual global recovery. China is
a particularly extreme case. The eco-
nomic cost of the Sichuan earth-
quake in 2008 was $125bn. Insurance
covered less than $400m. This isnt
sustainable.
Closing the gap boils down to trans-
ferring the cost from government to
industry using the insurance indus-
try to pick up more of the financial
cost. We exist to pay claims, and last
year global insurers paid out $107bn
globally. But extending our reach into
underinsured economies will require
us to better understand new risks and
to compile the data and models to
price them effectively.
Wed also like to see governments
share data more freely. Industry-led
initiatives like Oasis, of which Lloyds
is one of the founding sponsors, will
launch next year to provide an open
marketplace for models and data.
TOP TWEETS
I see Nick Clegg is in desperado mode, trying
to win back votes. His reckless promises
before the election couldnt be met.
@Mike_Fabricant
Nick Clegg is right to repeat his support for
ending universal benefits for wealthy
pensioners. Theyre hard to justify.
@bmitchellwrites
Stripping benefits from better off pensioners
disincentivises saving for future. More
means-testing means less self reliance.
@rosaltmann
Economic irony: US banks are calling for
Basel III relaxation, when their own
regulators are penalising foreign banks.
@vignesh178
Will US politicians be able to broker a deal by
the end of the month to avoid the fiscal cliff?
YES
We see a 90 per cent chance that a temporary extension will be
agreed before the end of the year. But every day of inaction lowers
this estimate. In the latest twist, the Republican House speaker
John Boehner has suggested an increase in taxes for incomes over
$1m (620k). While this is positive, it is still much higher than the
$250,000 proposed by Barack Obamas camp, and would still
leave a gaping hole in reaching the Presidents $1.4 trillion revenue
target. As such, the divide between the two camps remains
significant. If an agreement was not forthcoming and the US fell
off the cliff, it would prove highly disruptive for both the markets
and the global economy. In this scenario we set a 90 per cent
probability that retroactive legislation will come into effect in early
2013, which would help to reverse part of the fallout from the cliff.
Michala Marcussen is global head of economics at Societe
Generale Corporate & Investment Banking.
Michala Marcussen
NO
Grover Norquist
The strongest reason to believe President Barack Obama will
deliberately drive America over the fiscal cliff is that it serves his
interests. Beginning on 1 January 2013, five major tax increases
for Obamacare totalling more than a trillion dollars begin to bite.
Thousands of pages of regulations written over the past four
years will now slam the economy like a hailstorm. And Obama
has no intention of reducing his ongoing spending spree. Higher
taxes, more regulations and more spending dropped atop an
already weak economy is a recipe for another recession. How
better to hide this than to drive America over the fiscal cliff,
bringing some of the $500bn (310bn) in tax hikes back, and to
spend the next four years replacing George Bush with fiscal
cliff when whining about how the recession is not Obamas
fault.
Grover Norquist is president of Americans for Tax Reform.
RAPIDresponses
Insurance deficits
leave the world at
risk of catastrophe
But we also need to encourage soci-
eties to mitigate risks and, critically, to
adapt to a more uncertain climate.
Some are already planning for the
long term. After the Sichuan earth-
quake, Chinas government rebuilt to
a higher standard. Engineers in New
Zealand are implementing structural
lessons after its 2011 earthquake.
An established insurance market
can help with this. The best result for
insurers and clients is to minimise the
impact of any disaster. In this vein,
some travel insurers recently decided
to insist that skiers wear crash hel-
mets. Reducing casualties on the
slopes reduces potential claims. But
isnt this good for everyone?
On a macro level, insurers stimulate
safety by casting a second pair of eyes
over risk management. This leads to
more resilient communities. But
insurers cant do this alone.
Governments need to invest in flood
defences, for example, and establish
strong building codes. This debate is
currently playing out between the UK
government and the Association of
British Insurers, and it is essential that
they reach agreement.
With global economic recovery
uncertain, businesses and insurers
need confidence that they can with-
stand disaster. How do they get this?
They can invest in mitigation and pro-
tect their assets through transferring
risk. Or they can take a gamble. Do
you feel lucky? Can you afford another
2011?
Richard Ward is chief executive of Lloyds
of London.
RICHARD WARD
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TUESDAY 18 DECEMBER 2012
22
cityam.com
U
S BANKS are staging an
eleventh hour appeal to have
the implementation of Basel
III delayed from its 1 January
2013 deadline, arguing that they
would need to bolster their
balance sheets with an additional
$800bn (493bn) in core capital
assets under the new framework.
But while there may be some
protests, and the date may be
pushed back, the changes con-
tained within Basel III will eventu-
ally go through and shift the way
that banks are capitalised. And
although it may give banks a
headaches, it could be good news
for goldbugs.
CHANGED ATTITUDES
What the Basel Committee on
Banking Supervision (BCBS) says
isnt binding, but as a supranation-
al committee of the central banks
of the group of ten, when it tells
the banks to jump, they ask how
high? In the first two Basel
accords, gold could be treated as
capital, but as only a tier three
asset, meaning that just 50 per
cent of its market value could be
treated as bank capitalisation. This
classed gold not as an alternative
currency but, in terms of capital,
instead put it just above a pile of
old computer monitors that could
fetch some cash on eBay if push
came to shove. At the top of the
pile, and treated as core capital and
100 per cent convertible, were gov-
ernment treasuries, mortgage-
backed securities and cash. Clearly,
the events of the last half a decade
have demonstrated that, when the
markets slide into a crisis, mort-
gage-backed securities cannot be
considered freely convertible to
cash at face value.
But with the coming of Basel III,
gold is now considered as tier one
Capital classifications
will give gold a boost
The changes will be good news for gold bugs
Though it may be
delayed, Basel III
will support prices,
writes Craig Drake
TRADING MANAGEMENT WEALTH
THE TIPSTER
STEADY AS SHE GOES
S
HARES in cruise operator
Carnival are up by over 14
per cent over the last year. Its
earnings conference call on
Thursday will confirm that
bookings have held up well. The
company has also commissioned new
ships, adding to its burgeoning fleet.
It may not be entirely plain sailing
going forward but, for now, the course
seems to be steady as she goes. IG
quotes a price of 2,454p-2,460p for
Carnival.
The long-running Sportingbet
takeover saga could be concluded
today, ahead of its annual general
meeting tomorrow. William Hill has
lowered its offer price, following last
months poor trading update.
Sportingbets share price has also
come under pressure after rival Betfair
withdrew from some European
countries, highlighting the difficult
trading conditions that lie ahead for
online betting companies. Spreadex
quotes a price of 48.32p-49.18p for
Sportingbet.
Shares in London Stock
Exchange may be dragged lower,
when it reports tomorrow. After a
strong first quarter, traders expect the
stock exchange to report lower
trading volumes. However, there will
also be focus on its acquisition of
LCH.Clearnet, and traders will look to
the management to gauge how
quickly a deal can be completed. ETX
Capital quotes a price of 1059.62p-
1064.38p for London Stock Exchange.
Dixons Retail has positioned itself
for a white Christmas, and traders are
expecting sales to snowball over the
holiday season. The demise of
competitor Comet has amplified
footfall in its stores, and the retailer is
one of the top risers of the year, with
shares up by almost 180 per cent over
the last 12 months. Spread Co quotes
a price of 27.84p-27.89p for Dixons
Retail.
YOGESH CHANDARANA
portable and divisible store of
value. If the Mayan calendar is
almost correct, and the world is
destroyed on Friday save for a few
dozen people, it is likely that you
would be able to use your gold
holdings as a proxy to barter for
food and water. But while govern-
ments and individual investors are
quick to buy gold in times of finan-
cial instability, the regulations
reducing gold to tier three capital
and assuming 50 per cent of its
face value may have suppressed
institutional demand.
Daniel Fisher, chief executive of
Physical Gold, is understandably
bullish about the effects of Basel III.
Banks realise that a fast depreciat-
ing dollar does nothing for their
reserve levels and only gold can
provide a reliable store of wealth,
says Fisher. Im sure banks have
also been tempted to shift their
reliance on holding paper currency
as capital but the traditional tier-
ing ratio has prevented this. Now
they have a compelling reason to
re-address this balance and we
dont believe the delays to imple-
menting the bank capital rules will
change this.
Even if the shifting focus does not
lead to a net increase in institution-
al gold purchases, it will at least
stop banks from liquidating gold
holding to buy up government
bonds or hold cash. And if that hap-
pens, gold will hold firm in 2013.
capital and a 100 per cent loan-
backing reserve. The new regulato-
ry framework will consider gold as
equivalent to cash or bonds and a
de facto currency.
PROPHETS AND PROFITS
Warren Buffet has long been dis-
missive of gold and other precious
metals as an investment asset.
Famous for his dividend focused
investment strategies, Buffet has
quipped: you cant eat gold. But
on the other side of the fence, a
higher authority than even the
Oracle of Omaha, in Isaiah 1:22 the
prophet admonishes: Thy silver is
become dross, thy wine mixed
with water.
BANK HOLDINGS
Clearly the debate will rage on and
on. But the Basel Committee on
Banking Supervision has implicitly
sided with gold as a currency in
Basel III. But just how much of a
difference will it make to gold
prices?
You could argue that banks will
have little incentive to go to the
gold markets, and will instead use
the changes to use existing gold to
meet the higher liquidity require-
ments, but at the full 100 per cent
of the market face value rather
than the 50 per cent at its old tier
three status.
But this is to neglect the draw of
gold it is the ultimate liquid,
www.gftuk.com
THE MARKETS DONT SLEEP
DURING THE FESTIVE PERIOD
twitter.com/gftuk facebook.com/gftmarketsuk
The contents of this column are provided for general information purposes only. One should consider the appropriateness
of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612
NEAL GILBERT
SENIOR MARKET STRATEGIST, GFT
O
VER the Christmas period, equity
markets are often seen as offering
slim pickings for spread bet and
contract for difference traders.
Granted, theres the prospect of a
Santa rally, but otherwise the FTSE-100 index
tends to end up trading in tight ranges as
volatility ebbs away. Underlying volumes are
low, traders generally arent at their desks,
and many are resigned to leaving investment
decisions until the New Year. Earnings news
is sidelined and the fundamentals are also
thin on the ground, knocked further by the
run of market holidays. But closer inspection
shows that this assessment isnt universally
true. This time of year can often throw up a
bright star, especially if you look East.
During the period between 20 and 31
December, Eurasian Natural Resources
Corporation (ENRC) and Kazakhmys, the
mining companies, have both seen their
respective volatility rise to between two and
three times that of the underlying index.
Obviously were dealing with a relatively
small sample set, and both companies have
only been part of Londons top flight index
for the last few years. But the pattern follows
if you look elsewhere in the mining sector.
Fresnillo, the worlds largest silver producer,
has also shown itself to be another volatile
player around Christmas during its short
tenure on the FTSE-100. Vedanta also adds
its own lines to the story.
Is there anything that can explain why
these resource companies manage to stand
out at this time of the year? Arguably, theyre
always at the more volatile end of the
spectrum, as their prices are clearly
correlated with the raw materials they have
rights over. Any abnormal behaviour in the
price of the underlying commodity clearly
has the potential to skew the companys
perceived valuation. And with the
proliferation of automated trading systems
they certainly dont need time off over
Christmas its easy to see how choppy
movements in something like the price of
copper might translate into the valuation of a
firm with huge quantities of that material
under the ground.
So what about the other end of the range?
Its perhaps no surprise that the defensive
plays win out. Severn Trent, Pennon, GSK
and Unilever have historically or for the last
decade at least tended to see less volatility
than the benchmark index during the final
third of December. Unless theres any
extraordinary factors at play, if youre hoping
to make a quick profit in the dog days of
December from a share thats going to be
jumping round like a three year old on
Christmas morning, you probably want to
give these stalwarts a wide berth.
Beyond these two opposing ends of the
volatility spectrum, recent history suggests
theres little to differentiate the rest of the
market at this time of year. There is one thing
for sure, however. Theres no need for
investors to resign themselves to a week of
eating chocolates and watching Christmas
films on TV. Even though common lore may
suggest otherwise, the markets never really
sleep.
KAZAKHMYS SHARE PRICE, CHRISTMAS 2011
2011 5 Dec 12 Dec 19 Dec 26 Dec 30 Dec
980
960
940
920
900
880
860
For more information on which markets will be
closed during the Christmas and New Year period,
please visit: http://www.gftuk.com/Range-of-
Markets/Market-Information-Sheets/Public-Holidays
n UK equities closed:
12:30 24 December till 08:00 27 December
n US equities closed:
18:00 24 December till 14:30 26 December
n Germany equities closed:
16:30 21 December till 08:00 27 December
n UK 100 index (cash) closed:
12:30 24 December till 08:00 27 December.
n Spot Brent crude oil closed:
19:00 24 December till 11:00 26 December.
n Spot gold closed:
18:45 24 December till 11:00 26 December.
CHRISTMAS MARKET
CLOSURES
CNBC
COMMENT
LOUISA BOJESEN
Many hope Angela Merkel will get less coverage in the new year
practical if they hold sterling or UK
bonds, theyll probably see reason to
keep them. Among bond profiles, the UK
has a relatively long duration, and that is
encouraging. This means the UK doesnt
have to come to the market as frequently
as other countries.
In my very unscientific method of ask-
ing guests what they think about equi-
ties, most reply that they think global
stocks will continue to outperform other
assets. Bank of America Merrill Lynch
says policy support, reasonable valua-
tions, and diminishing tail risks will all
help to make equities the best perform-
ing asset class in 2013. Franklin adds that
the shift back towards equities from
bonds will take place as economic recov-
ery gains pace, and the prospect of high-
My pick: Short Aussie-yen and euro-yen
Expertise: Fundamental and technical analysis
Average time frame of trades: A few hours to a few days
I closed a long dollar-yen position at 84.15, booking a gain of
4.3 per cent. Given the results of the Japanese elections, I then
flipped the position, going long on yen. The futures market
shows that traders are currently the shortest theyve been on
yen since July 2007, making the short position very crowded.
With the euro fundamentally weak and the Aussie at yearly
highs, I find that both Aussie-yen and euro-yen look favourable
as potential short positions in the near term.
ANALYST PICKS
Looking ahead to the 2013 markets
I
F WE have to go through 2013 in
a similar vein to 2012, with a
record number of Eurogroup,
Ecofin, Euro summit, and
FinMin meetings, my patience will
be severely tested. Its about time we
moved on from over-analysing
upcoming banking unions or aid
packages. We need to return to a
sense of normality, and to make
business decisions based on
investing, rather than reacting
through short-term trading.
But predicting the year ahead can
be tricky. To help me out, I asked
Mike Franklin, head of investment
strategy at Beaufort International,
how hes feeling about 2013. To sum
up, there are no free lunches.
According to Franklin, economic
recovery will continue in the US and
China, while Europe will lag behind.
In turn, if Europe doesnt recover
quickly enough, theres a real possi-
bility the UK will lose its AAA credit
rating, though the market impact
would be limited. People will be
STRATEGIST
ILYA SPIVAK
My pick: Long Canadian dollar-yen (pending)
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I am looking to enter long on Canadian dollar-yen to capture the
impact of the Feds easing on Canadas economy and the Bank of
Canadas monetary policy, coupled with the election of Shinzo
Abe as Prime Minister of Japan. Abe wants to push the Bank of
Japan into open-ended easing, with an inflation target of 2 per
cent. I will look for a pullback from resistance at 84.95, and
position for attractive buying opportunities near downside
barriers at 82.88, 81.26 and 80.00.
CHIEF STRATEGIST
JOHN KICKLIGHTER
My pick: Short New Zealand dollar-yen and Aussie-dollar
Expertise: Fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
Last weeks long position on Canadian dollar-yen, and short
position on Aussie dollar-New Zealand dollar have worked well.
My focus is now on potential corrections in overdrawn moves.
Going short on Aussie-dollar from $1.05 seems appealing. I also
like the idea of going short on the New Zealand dollar-yen, which
I believe is one of the most overextended currency pairs. And on
the back of the yens structural shift, I like a long position on
dollar-yen, after the pair has pulled back to 82.50.
er interest rates grows.
In its 2013 outlook, BlackRock
Investment Institute says caution is
the watchword, and that fixed income
investors especially must look out.
BlackRock favours emerging market
debt and, in Europe, the investment
management group prefers Italian
and Spanish bonds over the debt of
weaker core countries.
When looking at commodities, Bank
of America thinks 2013 might be the
year gold rises to $2000 per troy
ounce, given its use as a hedge against
macro and inflation risks in light of
policy easing by the Fed and the
European Central Bank. Franklin
takes a slightly less optimistic line.
There are signs that the 13 year gold
advance may be running out of steam,
as investors choose to shift to equities.
Personally, I predict markets will go
up a bit in 2013, and then down a bit,
and then up a bit, etc. Because they
always do.
Louisa Bojesen is anchor of European
Closing Bell on CNBC.
TUESDAY 18 DECEMBER 2012
23
cityam.com
TRADING
CURRENCY STRATEGIST
CHRIS VECCHIO
LIFE&STYLE
TUESDAY 18 DECEMBER 2012
24
cityam.com
HEALTH
K
HALID ISMAIL is a British-
Moroccan Mixed Martial Arts
(MMA) fighter who has
trained in contact fighting
since he was five years old. He came
through injury and adversity to
cement himself as one of the UKs
top fighters. He tells us why MMA is
a great way to get fit.
DO YOU THINK THERE HAS BEEN A RISE IN
MMA POPULARITY?
MMA is probably the fastest growing
sport in the world today. Its already
huge in the US, but every year its
getting bigger and bigger in the UK.
Itll continue to grow as its an
exciting sport to watch, but at the
same time its very technical.
HOW DO YOU SEE MMA?
MMA is a good metaphor for life it is
about struggle and respect and
when the time is right, you have to
attack with everything youve got and
never give up. I always have respect
for my opponents and dont make my
move until the time is right.
YOU SUSTAINED A HORRIFIC BICEP
INJURY THAT SAW YOU OUT OF ACTION
FOR QUITE A WHILE. WHAT HAPPENED?
I was getting ready for my third
fight last year and was in good
condition, but on my last sparring
session, as I threw my training
partner wrestling, I heard a very
loud snap in my arm. I looked
down at my bicep and realised the
whole muscle had detached, and
was near my shoulder. Being a
fighter, and just being the way I
am, I decided my injury was a
blessing, and I wasnt going to let it
get me down. I had surgery and as
soon as I arrived home, I went for a
power walk to make sure I
understood that while my arm was
injured, the rest of my body was
still functioning fine. I could still
train safely and correctly while
rehabilitating my arm and I had to
train myself mentally.
YOU WON YOUR COMEBACK FIGHT HANDS
DOWN HOW DID THAT FEEL?
It was great getting back into the
cage and doing what I love.
Winning a fight is always special
but this was extra special due to the
long, injury-induced lay-off.
YOU TOOK UP MARTIAL ARTS AS A RESULT
OF SUFFERING WITH ASTHMA AS A CHILD
DID IT IMPROVE YOUR CONDITION?
Yes. My GP recommended to my
mum that she encourage me to try
some sort of sport, so thats exactly
what she did. I think it did help
with my asthma, but more so
with my confidence I wasnt afraid
to participate in sport and, even if I
struggled, I learnt not to give up.
WOULD YOU RECOMMEND MMA TO
ANYONE WHO WANTS TO FEEL SAFER
WALKING HOME AT NIGHT?
I think Mixed Martial Arts is
brilliant for anyone that wants to
learn how to defend themselves. It
suits any body type and gender, and
works for any individuals level of
strength because it combines such a
mix of different arts and skills.
WHAT DO YOU THINK ABOUT WHITE-
COLLAR BOXING?
White collar boxing is great most
mixed martial artists have some
sort of background in a base-sport
like boxing or wrestling. Boxing is a
huge part of MMA so I think its
growth in every community should
be supported.
WOULD YOU RECOMMEND MMA TO THE
STRESSED OUT, FRUSTRATED EXECUTIVE?
MMA is a great workout for stress
release as you get to channel your
anger by hitting and throwing
things, which releases tension in a
controlled environment. The
strength and conditioning part of
MMA training will help release
endorphins that will keep you
smiling long after your workout.
WHAT WOULD BE YOUR TOP TIPS FOR THE
TIME-POOR CITY WORKER WHOD LIKE TO
GET IN THE CAGE?
The time-honoured little and
often works in this scenario. If you
get a good trainer, theyll be able to
devise workout plans that will have
plenty of quality, so you wont have
to worry too much about quantity.
DO YOU THINK GOOD FIGHTERS ARE
BORN OR MADE?
I think fighters are born and then
champions are made, through hard
work, dedication and desire.
Ismail runs the LDG gyms in North East
London. For more information visit
khalid-ismail.com or
Cage fight your way to a
healthy mind and body
Where to try your hand (and elbow and knee) at MMA
FIT IN
THE CITY
LAURA WILLIAMS
FITNESS & DIET EXPERT
TWITTER: @LAURAFITNESS
WEB: LAURAWILLIAMSONLINE.CO.UK
Mixed Martial Arts is shedding its violent image and growing in
popularity. Laura Williams catches up with leading British
fighter Khalid Ismail to talk injury, asthma and stress relief.
New Wave Academy covers all
aspects of mixed martial arts and
is heralded as one of South
Londons premier gyms. With
only one MMA class a week, its
not somewhere to go if you want
to explore the sport in depth but
if youre after an introduction, its
a great place to start.
new-wave-academy.com
Lewis Sports Centre, Maberly
Road, Crystal Palace, SE19 2JH
07956 951 133
Prices start at 30 for
membership plus 5 per session
NEWWAVE ACADEMYMMA
Nestled in a quiet courtyard in
Kings Cross, the gym is within
close proximity to the City and
offers over 70 classes a week.
The sessions are delivered by
world-class instructors in
comfortable, modern
surroundings. When youre done
working up a sweat, members
can relax in the sauna or juice
bar.
urbankingsgym.com
4 Bravingtons Walk, Kings Cross,
N1 9GA. 020 787 7774
Membership starts at 99, 15 a
class
URBAN KINGS
If you plan on taking up mixed
martial arts as a serious hobby,
theres no place like London
Shootfighters. The gym is a
favourite among top competing
athletes and is the place to be if you
intend to take the discipline to the
highest level. Its the worlds largest
MMA gym and has just about every
gizmo you could hope for.
londonshootfighters.com
Royal Leisure Park, Great Western
Way, Park Royal, W3 0PA
Prices for a single class starts at 12
Membership packages from 195
LONDON SHOOTFIGHTERS
KO MMA is part of the famous KO
Gym Group, and while its known
primarily for Murray Thai, its
quickly gained a reputation for
being one of the best-mixed
martial arts destinations. So
whether youre after self-defence
techniques or simply want to
shift the pounds and get fit,
theres something here for you.
ko-mma.co.uk
Unit 102, Day Lewis House
324 Bensham Lane, Thornton
Heath CR7 7EQ
020 8665 7787
Prices start at 10 a session
KO MMA
Former MMA champion Khalid
Ismail (see left) trains himself
and other pro fighters at the LDG
Fitness Centre in Chadwell Heath,
which he founded in 2006 after
becoming disillusioned with the
approach of more mainstream
clubs. The gym promises a
friendly, affordable high quality
establishment in which to train.
ldgfitnesscentre.com
13BridgeClose Romford, RM70AU
01708 740011. An access all
areas membership costs 80 a
month and all classes are free
LDG FITNESS CENTRE
The Villa Saletta vineyard in Tuscany, owned by Guy Hands (inset) is producing some very fine wines indeed
TUESDAY 18 DECEMBER 2012
25
I
WAS once told that the finest
luxury a man can have is an
opera house in his garden
oddly enough by a man who
had exactly that. If that is true
then having your own vineyard
must come a close second. Thats
what Guy Hands has done and no
ordinary vineyard either.
Hands, of course, is one of the
countrys most
recognisable
financial figures
founder of Terra
Firma,
swashbuckling
investor and the
brains behind some
of the most
audacious deals of
the past two decades
(as well as the
occasional miss such
as EMI). But a little-
known fact about him is that he
also owns an estate in Tuscany,
complete with a 50-acre winery
thats starting to produce some
really rather stunning wines.
I wouldnt describe it as a
luxury, more as an expense, says
Hands, who has patiently invested
in Villa Saletta for almost a decade.
He originally bought the estate
with his wife Julia to develop a
small number of luxury villas in its
historic buildings, but the property
came with its own land and its
own vines.
They had been making wines on
the land since before the Romans,
in Etruscan times, he says. So we
thought we would give it a go.
But Hands is not someone to do
anything by halves. Rather than
brew up a few demijohns of Vino
Ordinario in the cupboard under
his stairs, he set himself the target
of making one of the finest wines
in Italy, opting to produce a Super
Tuscan wine, rather than a local
Chianti or the like.
Super Tuscans are both highly
expensive and highly difficult to
make. Rather than use local grape
types, he uses the same trio found
in Claret Merlot, Cabernet
Sauvignon and Cabernet Franc
but grow them in the brutally dry
heat of the Tuscan hills. The result,
if you can get it right, is a
wonderfully intense wine, full of
fruit and structure. The most
famous of the super Tuscans are
cult wines like
Sassicaia and
Solaia, which
can sell of
upwards of
150 a bottle.
We chose
to make a
Super Tuscan
because it is a
style I
personally like
and it offered
an attractive
business case. Typical to form,
Hands had set himself a towering
challenge but one with a
substantial financial rewards at
the other end if he gets it right.
He hired Jonathan Rodwell, an
Englishman and one of the worlds
top wine-makers, with a pedigree
that stretches from California to
France and even Chile. He in turn
planted the vines in nine fields
across 50 acres and created a micro
winery that today makes 50,000
bottles.
Interestingly, this a business
that, apart from Rodwell, is
almost entirely staffed and run by
women. When we started, we
found the local men would always
want to do things their way, the
way they had grown wine for
centuries, but we needed to prune
and harvest very differently. The
women were better at adapting,
says Rodwell.
The key question is: what are the
wines like? Hands and Jonathan
laid on a tasting for City A.M. in the
shadow of the Shard a couple of
weeks ago and the results were
really rather impressive. First, as a
nod to local customs, there is a
Chianti Riserva, which would more
than hold its own against
established competition. Then the
Chiave, a predominantly Merlot
wine that is designed for easy
drinking again nicely made but
not worth writing home about.
Things get more serious with the
two top wines: the Borgo Saletta
and the Saletta itself, the estates
top wine. Both are impressive but
the Saletta (I drank the 2005) takes
the honours. This is a powerful
wine with a lot of fruit and great
depth and complexity; one of the
most delicious wines I have drunk
all year. Everyone tasting it was
bowled over.
Villa Saletta has been keeping its
wines quiet while Hands and
Rodwell perfected them its not
even easy to buy them in the UK
since you have to apply by email on
their website for a price list.
Now, though, it appears the
world is going to hear more about
them. Rodwell is beginning to
enter them for a number of
competitions and the medal haul is
growing. Soon he may ask the all-
powerful Wine Spectator to rate
Saletta.
This means there may be a short
window to pick up these wines at
extremely reasonable prices. The
Chianti currently sells for just 11,
the Borgo Saletta for 14 and the
Saletta for an astonishingly
reasonable 28 a bottle, with
discounts when you buy by the
case (the only snag here is the
minimum order is three cases).
Hands accepts the current prices
cant last. "At the moment we
could sell every bottle we make
and still make a loss", he says. But
as the wine world learns what he
has been doing on a distant Tuscan
hillside, I suspect that picture will
change rapidly and this will
become another of his profitable
ventures.
To buy wines from Borgo Saletta, visit
the villasaletta.com and email your
enquiry using the contact us section.
Guy has his Hands on some fine wine
City A.M. resident wine buff Neil Bennett
catches up with renowned financier and
surprise wine-extraordinaire Guy Hands
They have been
making wines on this
land since the Romans
in Etruscan times so I
thought, why not?
O
NE OF the things I love
about the festive period is
the opportunity to do very
little cooking at home. Yes,
there is the main Christmas Day
meal to be prepared and perhaps
some party food for evenings with
friends. But after all that, I relish
being able to graze on cold meats
and cured fish, snack on cheese
and generally just enjoy one long
picnic of leftovers and easy
seasonal treats from Boxing Day
until New Years Eve.
If you want hassle-free seasonal
fare, here are my top picks:
A truckle (a wheel of cheese) of
some very good, strong cheddar or
stilton, or alternatively some
Lancashire or Stichelton which
both are in season now, as well as
some really stinky cheeses. For
something different why not try
Vacherin, a cows milk cheese
which really comes into its own at
this time of year. Having a truckle
on the table is a great way to share
with friends and family who can
just scoop out what they want it
should see you through the whole
festive period.
A good selection of smoked,
cured or potted meat and fish
(such as gravadlax or smoked
trout), dried sausages, cured ham
or a terrine of pate, and a stock of
pickled vegetables and chutneys.
All these will last a long time,
minimising the need for shopping
and cooking over Christmas week.
Some shellfish, which is at its
best right now, to freshen your
palate. British fishermen risk the
terrible winter weather to bring
us exceptional scallops, crab
and lobster, which are at their
meatiest and full of flavour at
the moment, as the waters
around the Atlantic coast are so
fertile.
Bowls of dried figs and dates,
candied chestnuts and sugared
plums, which can be eaten like
sweets, as well as a dense fruit
cake and some sloe gin to wash it
all down.
Of course, everyone has their
own, very personal, traditions of
what and how they like to eat
over the season. Usually
this is
rooted in our own upbringing, but
we are increasingly embracing
other nationalities traditions,
with things like stollen, panetone,
eggnog and smorgasbords (which
can be prepared or bought in
advance and are easy to serve)
becoming favourites.
I might break with tradition this
year and replace the turkey curry
with a mole a traditional
Mexican stew made with chocolate
and chilli, to use up the last of the
bird. But other than that, Ill be
keeping it simple. Im feeling
hungry already...
AMUSE
BOUCHE
BRUCE WILSON
Head chef, Paternoster Chop House
How to eat well and cook little this festive period
FOOD&BOOZE
A truckle of cheese will help
keep you out of the kitchen
this Christmas
26
TV & GAMES
cityam.com
T
E
R
R
E
S
T
R
I
A
L
BBC1
SKY SPORTS 1
7pmLive Darts 12amFootballs
Greatest 12.30amFootball Asia
1amRevista De La Liga 2am
Premier League Review3am
Footballs Greatest 3.30am
Football Asia 4amRevista De La
Liga 5am-6amPremier League
Review
SKY SPORTS 2
7pmPremier League Review8pm
Test Cricket 9pmT20 Cricket
The Big Bash 9.30pm
Powerboating 10pmRevista De La
Liga 11pmPremier League Review
12amTest Cricket 1amT20
Cricket The Big Bash 1.30am
Powerboating 2amEuropean
Seniors Tour Golf 3amThinking
Tackle Special 4am-5am
Badminton
SKY SPORTS 3
7pmEuropean Seniors Tour Golf
8pmTrilby Tour Golf 10pmAngling
11pmPool 12amEuropean Seniors
Tour Golf 1am-3.15amLive WWE:
Late Night Smackdown
BRITISH EUROSPORT
7.15pmWintersports: Ski Pass
7.30pmLive Alpine Skiing 8.45pm
Skeleton 9.45pmBobsleigh
11.15pmAlpine Skiing 12.15am
Wintersports: Ski Pass
12.30am-12.45amGT Academy:
Race to Dubai
ESPN
7pmESPN FC Press Pass 7.30pm
Live German Football 9.30pm
ESPN Kicks: Serie A 9.45pmESPN
Kicks: Premier League 10pm
Eredivisie Review Show11pm
ESPN FC Press Pass 11.30pm
Soccerex 2012 12amUFC: The
Ultimate Fighter Finale 3amPlanet
Speed 3.30am30 for 30
5.30am-6amFIS Alpine Ski World
Cup Report
SKY LIVING
7pmCriminal Minds 8pmSing
Date: Celebrity Special
8.30pmSing Date 9pm
Elementary 11pmChicago Fire
12amBones 1amCriminal Minds
1.50amSupernatural 2.40am
Medium3.30amBones 4.20am
Nothing to Declare 5.10am-6am
Passport Patrol
BBC THREE
7pmSnog, Marry, Avoid: The
Pageant 2012 8pmDont Tell the
Bride: Christmas Revenge 2012
9pmDont Tell the Bride
Christmas on Ice 10pmRussell
Howards Good News 10.30pm
EastEnders 11pmFamily Guy
11.45pmAmerican Dad! 12.30am
Dont Tell the Bride Christmas on
Ice 1.30amHim & Her 2am
Impractical Jokers 2.30am
Pramface 3.30am-4amRussell
Howards Good News
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8.30pmThe Big Bang
Theory 9pmCome Dine with Me:
Made in Chelsea Special 10pmTool
Academy: Boyfriends Behaving
Badly 11.05pmThe Inbetweeners
12.15amThe Big Bang Theory
1.15amThe Inbetweeners 2.15am
How I Met Your Mother 2.40am
The Ricky Gervais Show3.05am
The Cleveland Show3.55am
Scrubs 4.20am-6amUgly Betty
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmStorage Wars: Texas
8.30pmCajun Pawn Stars 9pm
Storage Wars: Texas 9.30pmCajun
Pawn Stars 10pmStorage Wars:
Texas 10.30pmCajun Pawn Stars
11pmSwamp People 1amStorage
Wars: Texas 1.30amCajun Pawn
Stars 2amStorage Wars: Texas
2.30amCajun Pawn Stars 3am
Storage Wars: Texas 3.30amCajun
Pawn Stars 4amSwamp People
5amPawn Stars 5.30am-6am
Storage Wars: Texas
DISCOVERY
7pmFast n Loud 8pmIce Pilots
9pmJungle Gold 10pmSwamp
Loggers 11pmSons of Guns 12am
Jungle Gold 1amSwamp Loggers
2amSons of Guns 3amJungle
Gold 3.50amSwamp Loggers
4.40amDiscovery Atlas: France
Revealed 5.30am-6amMeerkat
Manor
DISCOVERY HOME &
HEALTH
7pmDr Oz 8pmKate Plus 8 9pm
42 Stone Mum10pmObese and
Pregnant 11pmA&E 12am42
Stone Mum1amObese and
Pregnant 2amA&E 3am
Supernanny US 4amA Baby Story
5am-6amPortland Babies
SKY1
8pmLast Resort 9pmJason
Manfords Little Cracker 9.30pm
Omid Djalilis Little Cracker 10pm
FILMHide and Seek 2005.
11.55pmBrit Cops: Zero Tolerance
1.55amRoad Wars 3.45amCrash
Test Dummies 4.10am-6am
Stargate SG-1
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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&
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6pmBBC News
6.30pmBBC London News
7pmThe One Show:
7.30pmEastEnders: BBC News
8pmHolby City:
9pmLast Tango in Halifax:
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmImagine: A Beauty Is
Born Matthew Bournes Sleeping
Beauty: 11.35pmFILMThe
Unbearable Lightness of Being
1988. 2.20amWeatherview
2.25amSign Zone: Supersized
Earth 3.25amSign Zone:
Supersized Earth 4.25am-6am
BBC News
6pmCelebrity Eggheads:
6.30pmStrictly Come Dancing
It Takes Two:
7pmMasterChef: The
Professionals Michels
Classics:
7.30pmChristmas University
Challenge:
8pmThe Great British Bake
Off Christmas Masterclass:
9pmCHOICE Wartime Farm
Christmas:
10pmRev:
10.30pmNewsnight: Weather
11.20pmInside Claridges:
12.20amBBC News
4am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale:
7.30pmThe Unforgettable
Larry Grayson:
8pmCHOICE Inside Guinness
World Records:
9pmRuth Rendells Thirteen
Steps Down:
10pmITV News at Ten
10.30pmLondon News
10.35pmRuth Rendells
Thirteen Steps Down:
11.35pmGrimefighters:
12.05amJackpot247; ITV News
Headlines 3amPushing Daisies
3.45am-5.30amITV Nightscreen
6pmThe Simpsons:
6.30pmHollyoaks:
7pmChannel 4 News
7.55pm4thought.tv:
8pmEmbarrassing Bodies:
Back to the Clinic:
9pmBad Santas:
10pmRamsays Kitchen
Nightmares USA:
11.05pmHomeland: 12.10am
European Poker Tour 1.05amKOTV
Boxing Weekly 1.35amSailing:
Americas Cup Discovered 2am
Beach Volleyball 2.55amBest of
British: This Is Rehab 3.50am
Freesports on 4 4.20amSurvival of
the Fittest 4.45amThe Grid
5.15am-6.10amDeal or No Deal
5.30pmEmergency Bikers:
The paramedics help a child
who has been hit by a car.
6.30pm5 News at 6.30
7pmHighland Emergency:
7.30pmHighland Emergency: 5
News Update
8pmCHOICE Murder Files:
Killer on the Run: 5 News at 9
9pmBody of Proof:
10pmCSI: NY:
10.55pmCSI: NY: 11.55pmSlaves
in the Cellar: 12.55amSuperCasino
3.55amHouse Doctor 4.20am
HouseBusters 4.45amGreat
Artists 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 23
13 10
45
9 23 17
28
28 29
6 16
24 11
25
4 19 11
45
30 27
24
17
10
28
20
3
33
16
17
16
17
22
34
35
6
15
11
11
42
20
16
7
O
U
T
G
I R
D
N
B
4
B A S I C S H O R E
O P R U E
L H O P E N I N G
S T E W S G T
T R S L E E P E R
E V E R O R O D E
R O S E B U D R P
O G O T T E R
A D O R I N G R E
O E M A S
M O N T H A B Y S S
8 1 9 8 1 2 4
9 7 5 1 3 8 9
6 3 8 7 2 1 4
5 2 1 3 2 8 6 9
3 8 9 6 3 1
9 2 5 6 8 3 7 1 4
5 1 2 4 1 2
8 3 9 7 7 9 6 8
4 1 6 2 5 3 9
3 9 7 9 5 2 5
1 2 6 8 4 1 7
4
4
4
4
4
4
4
4
4
The nine-letter word was
SHRINKAGE
ACROSS
1 Large bags (5)
4 Scour
vigorously(5)
7 Orderly
grouping (11)
8 Amphibian (4)
11 Fried potato
slices (6)
14 Country, capital
Stockholm (6)
17 Hard fruits (4)
21 Marked by
independence
and creativity
in thought or
action (11)
22 Bill ___, of
Microsoft
fame (5)
23 Puts a name to (5)
DOWN
1 Outerwear garment (5)
2 Consignment (5)
3 Bathroom xture (4)
4 Implement with a shaft
and barbed point (5)
5 Tall perennial grasses (5)
6 Seizes with the teeth (5)
9 Not processed
or rened (3)
10 Deity (3)
11 Metal container (3)
12 Travellers pub (3)
13 Deep hole (3)
14 Wasps defence (5)
15 Accurate (5)
16 Departs (5)
18 Applying (5)
19 Paces (5)
20 Fruit preserves (4)
T
E
R
R
E
S
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
TUESDAY 18 DECEMBER 2012
WARTIME FARMCHRISTMAS
BBC2, 9PM
Ruth Goodman and Peter Ginn return
to Manor Farm to recreate the
conditions that prevailed in rural
Britain during the Christmas of 1944.
INSIDE GUINNESS WORLD
RECORDS ITV1, 8PM
Concluding the documentary meeting
a wide range of record holders,
including Pauline Potter, the worlds
heaviest woman.
MURDER FILES: KILLER ON THE
RUN CHANNEL5,8PM
The story of Neil Entwistle, who was
convicted of the murders of his wife
and their nine-month-old daughter in
Massachusetts in 2006.
TVPICK
ARSENAL manager Arsene Wenger
last night hinted he is ready to play
Theo Walcott in his favoured central
role more often after the experiment
helped his beleaguered team redis-
cover devastating form.
Midfielder Santi Cazorla scored a
hat-trick while Lukas Podolski and
Walcott netted the others as the
Gunners tore through hapless
Reading at pace and climbed to fifth
in the Premier League.
Bottom-of-the-table Royals still gave
Arsenal a scare when Adam Le
Fondre and Jimmy Kebe scored with-
in six second-half minutes to make it
4-2, but Walcotts strike finished the
job and pleased Wenger.
Hes shown ability to play in this
position, he said of contract rebel
Walcott, who could leave for free in
the summer.
I believe for his first game hes
done very well in that position. There
were very encouraging signs. I felt it
was a good opportunity to do it
tonight. On what Ive seen in train-
Walcott striker
cameo caps off
Cazorla treble
ing, I thought he was ready to do it.
Wengers men scored seven at the
Madejski Stadium in the Capital One
Cup earlier this season and took just
14 minutes to add another, Podolski
deftly killing a Kieran Gibbs cross and
lashing in with his next touch.
Cazorla swerved a 25-yard drive
narrowly wide, Walcott shot at
Federici when clean through and Jack
Wilsheres volley was tipped wide
before the Spain midfielder scored
twice in four minutes.
First the 5ft 6in star dived to head
home Podolskis left-wing cross; then
he turned smartly and fired through
a crowd after Gibbs had headed
Walcotts centre back across goal.
Adrian Mariappas sliding interven-
tion stopped Walcotts shot on the
line just after half-time, but Cazorla
tapped in the fourth, and completed
his treble, from Podolskis cross after
a sweeping move on the hour.
Arsenal were cruising, yet Reading
stunned them and raised hopes of a
comeback with two goals in six min-
utes, Le Fondre rounding Wojciech
Szczesny and then Kebe beating the
offside trap and stroking home.
Walcott settled Wengers nerves in
the 80th minute, however, and
crowned his striking audition with a
sharp finish, gathering Cazorlas pass
and turning Kaspars Gorkss before
steering left-footed past Federici.
Tottenham dont rely upon Bale
to climb table, says Vertonghen
TOTTENHAM defender Jan
Vertonghen is adamant Spurs can
succeed without injured winger
Gareth Bale.
The Welshman remains sidelined,
having limped off during the 3-0
victory at Fulham a fortnight ago
with a hamstring injury.
Vertonghen, who scored his first
Premier League goal for Tottenham
during Sundays 1-0 win over
Swansea, believes Clint Dempsey has
proved an effective replacement
during Bales absence.
Maybe we needed a little more
width on the pitch but Clint has
replaced Gareth very well, like he
has done with all the strikers
already, said Vertonghen.
Of course Gareth is a world class
player, but we did well without him.
We have a big squad but have had
too many injuries. But even without
those players weve played quite well.
When everybody comes back well
have a very strong team.
Spurs climbed to fourth in the
Premier League after Sundays win
and will be relieved to halt a trend of
conceding late goals.
Andre Villas-Boass side would be
top of the league if matches had
finished on 80 minutes.
Weve conceded too many goals
in the last 10 minutes, we know that.
We have to keep our focus for 95
minutes, added Vertonghen. We
talked about not conceding late
goals and last week [a late 2-1 loss to
Everton] was a perfect example.
IN BRIEF
Brit Chilton steps up onto 2013 grid
n FORMULA ONE: British racing driver
Max Chilton is expected to drive for
Marussia next season, having been
promoted from reserve driver. The 21-
year-old was their testing and reserve
driver for the second half of the 2012
season. Chilton will become the fourth
British driver on the grid for 2013 along
with Jenson Button, Lewis Hamilton and
Paul Di Resta.
Anelka in talks to quit Shanghai
n FOOTBALL: Former Chelsea striker
Nicolas Anelka has initiated talks to
terminate his contract with the Chinese
side Shanghai Shenhua. Anelka joined
from Chelsea in January but has only
scored three times during his short spell
as Shanghai struggled to finish ninth in
the Super League. Former Blues
teammate Didier Drogba joined Anelka
in China in the summer but his future in
Shanghai also remains uncertain.
Warnock insists pressure on Blues
n FOOTBALL: Leeds manager Neil
Warnock is relishing taking on Chelsea
in the Capital One Cup quarter-finals
tomorrow. The Championship side have
won four of their last five games, while
Chelsea return from Japan after the 1-0
defeat to Corinthians in the Club World
Cup on Sunday. It promises to be
fabulous with no pressure on us, said
Warnock. Whatever team I select we
can just go out and enjoy it.
Cazorla (right) scored a hat-trick as Arsenal climbed to fifth in the Premier League
ENGLAND Rugby 2015, the board
organising the 2015 World Cup, has
recruited Locogs Paul Deighton to
try to replicate the success of the
London 2012 Olympics.
As chief executive officer of Locog,
the organising committee for the
London Games, Deighton was
responsible for raising the 2bn
budget from the private sector and
for relations with the government.
He joins Debbie Jevans, former
director of sport for Locog, who was
appointed chief executive of England
Rugby 2015 in September.
BY ALEX SHARP
BY ALEX SHARP
SPORT
27
TUESDAY 18 DECEMBER 2012
cityam.com
REFEREE Mark Halsey has saved
Everton midfielder Marouane
Fellaini from an extensive ban
following his head-butt on Stoke
defender Ryan Shawcross during the
heated 1-1 draw on Saturday.
Fellaini yesterday accepted a
charge of violent conduct for the
incident, which officials missed, and
was banned retrospectively by the
Football Association for three games.
But the Belgian avoided a much
longer ban because Halsey admitted
seeing a further two incidents
involving Fellaini and Shawcross late
Fellaini out until 2013 but spared
long term ban for losing head
in the game, but deemed neither to
be violent conduct.
Fellaini has been inspirational in
Evertons fine start to the Premier
League season but is now out until
the New Year. The 25-year-old will
miss upcoming fixtures against West
Ham, Wigan and Chelsea.
I apologise completely to Ryan
Shawcross, my team mates and to
our fans at the game, said Fellaini
after the match. I have also
apologised to the manager and the
staff. I have no excuses, I was
disappointed with the way I was
being treated and I lost my temper,
which was unprofessional of me.
BY ALEX SHARP
SPORT England has announced large
budget increases for cycling,
triathlon and netball but cricket,
tennis and rugby have suffered
heavy cuts.
The body will provide 493m to
grassroots projects in 46 sports
between 2013-17, with only 11 sports
receiving less than in 2009-13.
Cycling had a hugely successful
year at London 2012 and most
notably with Bradley Wiggins
becoming Tour de France champion.
Alongside the Sky Ride scheme,
these achievements have seen a large
increase in cycling numbers leading
to a 30 per cent rise in cash to 32m.
Netball funding has increased
from 18.7m to 25.3m for its key
contribution to increasing womens
participation in sport, while
triathlon projects are set to receive
7.5m, up from 4.7m.
However rugby has been hit hard,
with league cut by 10.1m to 17.5m
and union by 8.8m to 20m despite
the 2015 World Cup being hosted in
England. Crickets funding has fallen
7.7m to 27.5m. Tennis, swimming
and basketball have been granted
just one years guaranteed funding
with the rest dependent on results.
BY ALEX SHARP
Deighton joins
board for 2015
Cycling reaps rewards of Wiggo
as rugby and cricket funds fall
Results
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READING....................................2
ARSENAL....................................5
BY FRANK DALLERES
PREMIER LEAGUE
TRIUMPHANT England captain
Alastair Cook has hailed yesterdays
historic first Test series victory in
India for 27 years as the equal of
their landmark 2010-11 Ashes suc-
cess in Australia.
Centuries from batsmen
Jonathan Trott and Ian
Bell comfortably secured
a draw in the fourth Test
in Nagpur and with it a
2-1 series win in condi-
tions that have torment-
ed England for a quarter
of a century.
The tourists fabled trou-
bles looked set to continue when
India won the first match by nine
wickets, but Cooks leadership and
exemplary batting inspired an
emphatic response and a place in
cricket folklore.
Opener Cook shared in the first
Ashes series win in Australia for 24
years, but ranks becoming only the
fourth England team to beat India on
their own soil alongside that water-
shed 2010-11 achievement.
It is a very special
day, a special tour,
said the left-hander,
who hit 562 over the
four matches.
I think it is on
a par with the
Ashes. As an
Englishman,
winning in
Australia
after so
l o n g
meant a
h u g e
a mo unt .
But to be in
that that dress-
ing room there
Party like its 2011
[yesterday] for that last half an hour
knowing what we had achieved was a
very special place and it will live long
in my memory.
Cook pinpointed the second
innings of the first Test, when he
scored 176, as the moment that he
felt the pressure of succeeding
Andrew Strauss lift and
believed England could
mount an unlikely come-
back.
You want to prove the
captaincy is not a bur-
den. To do it straight
away is a big monkey off
your back, he added. After
that second innings in
Ahmedabad we thought: Yes, we
can score runs out here.
Defeat was Indias first in a home
Test series since 2004 against
Australia, while former England skip-
per Michael Vaughan called it the
hardest place of all to win.
It will perhaps be remembered as a
series in which England finally found
success against spin, with Kevin
Pietersen, Bell and Trott also hitting
vital centuries.
Theyve really done them-
selves their country proud, said
head coach Andy Flower.
Theyve learnt how to play spin
a lot better, theyve learnt
how to take 20 wickets
in these conditions
and theyve learnt
how to be
resilient in for-
eign condi-
tions.
T
O PUT Englands long-awaited
triumph in India yesterday in
context: the last time they won
there I was still playing. The
length of time everyone in English
cricket has waited for this moment
says it all. It is a terrific achievement
and, in recent memory, second only
to winning the Ashes in 2005.
Ashes victories are all the more
delicious because of the opposition,
but this was better than the last
series in Australia, when England
crushed a poor side. What set 2005
apart was that England defeated
greats such as Shane Warne and
Glenn McGrath. But if that is No1 in
Englands greatest successes of
modern times, then fighting back
from the first-Test drubbing in
Ahmedabad to win in India for the
first time since 1985 is certainly No2.
And, more than just the winning,
what is immensely satisfying is the
transformative effect the series has
had on the team.
It may not have been make or
break exactly, but England went into
the series having just lost to South
Africa, with a new captain and amid
off-field strife, so another setback
would have left them in a sorry state.
Instead they have emerged far
stronger, the skipper galvanised and
the squad reinvigorated, and youd
expect them to beat New Zealand
after Christmas and keep the Ashes
next summer.
Cook has earned the respect of
everyone in cricket, not only with his
outstanding captains performances
but also with his leadership and bold
decision-making.
Newcomers excelled. Opener Nick
Compton may not have made huge
scores but, for a man making his Test
debut in probably the most
demanding conditions for a
batsman, he did a very good job.
Not many pundits predicted Joe
Root would come into a winning
side for the final match, but he
played with great confidence and is
entitled to expect to keep that No6
spot for the trip to New Zealand.
Monty Panesar found the
consistency that has often eluded
him and announced himself as a
credible rival to Graeme Swann
when England play one spinner.
One of my favourite memories was
Monty bowling Sachin Tendulkar in
the second Test. It was typical of the
way England handled Indias best
player and a key moment in the
balance of power shifting.
Theyve had wobbles in 2012 but
England are still among the top two
teams in the world, along with
South Africa. Their aim for next year
should be to put together a long
unbeaten run.
Andy Lloyd is a former England
cricketer. He has also been captain and
chairman of Warwickshire.
562
Runs scored by
Alastair Cook in
the series
Winning in India is as good as Ashes glory
in Australia, says England captain Cook
BY FRANK DALLERES
Monty
Panesar and
Graeme
Swann revel
in the win
(left)
28
SPORT
cityam.com/sport
Santi Climax: Cazorla
scores hat-trick as Arsenal
return to form at Reading
@cityam_sport
CRICKET
COMMENT
ANDY LLOYD
Watershed series has transformed this England team
INDIA captain Mahendra Singh
Dhoni singled out seamer James
Anderson as the difference
between the sides after England
clinched a landmark series win
yesterday.
Anderson took 12 wickets over
the four-match series fewer than
spinners Graeme Swann and
Monty Panesar as the tourists
fought back to beat the hosts 2-1.
But Dhoni identified Andersons
ability to reverse swing in later
matches and keep the Indian
batsmen under pressure as
Englands most potent weapon.
They are a very well balanced
side, the two spinners they have
are very good, the losing skipper
said of England. Anderson
bowled really well throughout the
series on wickets where there
wasnt much help for the fast
bowlers. That was really crucial.
He tested the batsmen all the
time and kept them guessing. I
thought the major difference
between the two sides was James
Anderson.
The Lancashire man,
who took 4-81 in Indias
first and only innings in
the drawn final match in
Nagpur, put his reverse
swing success down to
laborious honing.
Weve really practised
in the nets and the games
weve had leading up to the
series, he said. We executed our
plans really well in the game.
Anderson was
the key, says
India skipper
BY FRANK DALLERES
12
Wickets taken by
James Anderson
during the series
Kevin Pietersen,
who scored a
second Test ton,
enjoyed the
celebrations
Football: Page 27
TUESDAY 18 DECEMBER 2012
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