n Markets spooked as

officials tell EU leaders to

prepare for a Greek exit
BUSINESS WITH PERSONALITY
MORE BLACK CABS THAN
TRIES AT TWICKENHAM
Facebook hit
by lawsuit
over its float
FACEBOOK shares rose three per
cent to $32 yesterday, reversing the
stocks two-day slide.
But the internet idols IPO woes
are far from over after Facebook
was yesterday hit by lawsuits from
disgruntled shareholders.
US law firm Robbins Geller filed
a class action on behalf of new
Facebook investors, alleging that
the prospectus issued ahead of the
IPO was false and misleading.
The suit, which is also directed at
Morgan Stanley and Mark
Zuckerberg, claims that Facebook
revenue forecasts which were
downgraded just days before the
flotation were selectively disclosed
by the defendants to certain
preferred investors.
The complaint, one of four filed
in the last two days, said: The
value of Facebook common stock
has declined substantially and
plaintiffs and the class have
sustained damages as a result.
But Facebook, in its first public
statement since its float last week,
said: We believe the lawsuit is
without merit and will defend
ourselves vigorously.
The legal filing has triggered
debate about the fairness of the
rule which prevents analysts linked
to the advising banks publishing
forecasts on a company about to
float, but allows them to discuss
the guidance verbally.
Morgan Stanley was issued with
a subpoena on Tuesday night over
the same issue of analysts sharing
forecasts with select investors.
Nasdaq is also yet to escape the
firing line after receiving a claim
for financial compensation from
Knight Capital, which said last
night it expects to suffer up to a
$35m loss due to trading glitches
during Facebooks market debut.
The NYSE last night
denied it was
courting Facebook
in the hope the tech
giant would
transfer its listing
from Nasdaq.
EUROPEAN shares tumbled again
yesterday as leaders failed to come to
an agreement on how to end the
debt crisis and Eurozone officials
told member states to prepare for
Greece to leave the currency.
The UK, Germany and Finland all
saw borrowing costs fall to record
lows as investors fled risky assets in
favour of their safe haven bonds,
while yields jumped again for gov-
ernments in Italy, Spain and Greece.
Last nights informal EU summit,
as expected, reached no conclusions
on how to deal with the crisis.
Ahead of the summit, European
Council leader Herman van Rompuy
insisted that the meeting was only
set to discuss what how we can
stimulate growth and jobs, rather
than being aimed at coming up with
hard proposals.
We are preparing the group for
firm decisions in June, he said.
The stage had already been set for
deadlock as French President
Francois Hollande argued in favour
of jointly-guaranteed eurobonds as a
means of extending German finan-
cial power to troubled Greece, Spain
and Italy.
However, German chancellor
Angela Merkel made it clear she
would not spend more German cash
supporting weak governments debt.
Meanwhile documents emerged
showing the Eurogroup Working
Group (EWG) has advised Eurozone
www.cityam.com FREE
BY LAUREN DAVIDSON
FTSE 100 5,266.41 -136.87 DOW 12,496.15 -6.66 NASDAQ2,850.12 +11.04 /$ 1.57 -0.01 / 1.24 unc /$ 1.26 -0.01
INVESTORS FLEE
TO SAFE HAVENS
ISSUE 1,639 THURSDAY 24 MAY 2012
MORE: Page 9

Certified Distribution
02/04/2012 till 29/04/2012 is 100,668
BY TIM WALLACE
n Summit fails to reach
agreement over how to
contain Eurozone crisis
n Strong demand for
German and UK bonds as
yields sink to record lows
members to prepare contingency
plans to work out how they will
cope with a Greek exit.
Belgian finance minister Steven
Vanackere confirmed he was look-
ing at how best to cope with the fall-
out of a country leaving.
We must insist on efforts to avoid
an exit scenario but that doesnt
mean we are not preparing for even-
tualities, he said. I believe many
countries have their contingency
plans for the things they want to
avoid at all cost, and to say that we
dont have a contingency plan
would be irresponsible.
Markets tumbled on the uncer-
tainty, with the Italian FTSE MIB
falling 3.68 per cent, Spains IBEX
dropping 3.31 per cent, Frances
CAC losing 2.62 per cent and the
FTSE 100 falling 2.53 per cent.
Investors also sold weak govern-
ments bonds 10-year borrowing
costs for Italy rose 8.9 basis points
(bp) to 5.667 per cent while Spains
jumped 12.6bp to 6.204 per cent.
Meanwhile safe haven bonds fell
even further, as Germany sold two-
year debt with a zero per cent
coupon and its 10-year borrowing
costs dropped 8.4bp to 1.38 per cent,
while the UKs fell 9.9bp to 1.77 per
cent.
Prime Minister David Cameron arrived in Brussels last night
Mark Zuckerberg
faces legal action
Knighthood
for Apples
design guru
See Page 13
German bond yields hit new lows
May Mar Apr
1.6
1.8
2
2.2 %
1.38
23May
The FTSE dropped sharply yesterday
May Mar Feb Dec 2012 Apr
5,250
5,500
5,750
6,000
5,266.41
23May
DEBATE: Page 23

MORE: Page 5, Page 18-19

G
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Y
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
HEWLETT-Packard yesterday
unveiled a restructure which will see
Autonomy founder Mike Lynch leave
the company and 27,000 employees
lose their jobs.
British entrepreneur Mike Lynch,
dubbed the British Bill Gates, is a
founder of tech company Autonomy,
which was bought by HP in August
for 6.2bn. At the time it was the
UKs most valuable software firm.
Lynch will be replaced by HPs
chief strategy officer Bill Veghte.
Hewlett-Packard also announced a
slew of job cuts which will reduce its
work force by eight per cent. The
move, to be implemented largely
through early retirements, will
generate annual savings of up to
$3.5bn, the company said.
The revelations came as the US
tech company published its second
quarter results.
HP posted a $1.59bn profit, down
30 per cent on the same period last
year, and said revenue fell by three
per cent to $30.7bn.
Chief executive Meg Whitman
said, We are making
progress in our multi-year
effort to make HP simple,
more efficient and
better... but we still have a
lot of work to do.
Mike Lynch to
leave HP amid
27,000 job cuts
BY LAUREN DAVIDSON
Fresh blow to London as
Tungsten delays its float
TUNGSTEN, the British bid vehicle
founded by Edmund and Danny
Truell, yesterday announced a
raincheck on its IPO.
Citing adverse market conditions,
the financial services investment
fund said it was postponing its flota-
tion, set to raise 200m.
The announcement will come as a
blow to the London Stock Exchange,
which was expecting to list
Tungsten shares in June.
The Truell brothers unveiled the
IPO plans on 4 May, saying the newly
incorporated company intended to
take advantage of the value opportu-
nity within the financial services
sector.
The proceeds, to be raised from
selling shares at 5, were expected
to be used to fund acquisitions or to
recapitalise and grow the companys
current assets.
The float delay will also be a let-
down for UBS and Numis, the joint
bookrunners on the deal.
Tungsten gave no indication yes-
terday as to whether it plans to
return to the markets in the near
future.
In a reflection of the tough market
conditions, the disappointing news
emerged just two weeks after O1
Properties, the Russian real estate
investment firm, postponed its IPO.
Web pioneer sues over iTunes
A General Electric-owned company is
squaring up to Apple in a Pennsylvania
courtroom over whether its patents were
infringed when Apple launched its iTunes
platform. The case, which pits two of the
USs biggest companies against each
other, is the latest in a string of high-
profile patent disputes involving
technology companies.
Copper plan would wreak havoc
US manufacturers have attacked plans by
JPMorgan Chase to launch an exchange-
traded fund backed by physical copper,
arguing that the product would grossly
and artificially inflate prices and wreak
havoc on the US and global economy.
Normal planning service resumed
The worlds largest companies have
resumed normal patterns of succession
planning, suggesting they believe the
worst of the downturn is over. Among the
2,500 biggest groups by market value,
355 replaced their chief executives last
year, compared with just 290 in 2010,
according to research by Booz &
Company.
Force end of free current accounts
Banks in Britain should be forced to start
charging customers for their current
accounts, according to Andrew Bailey,
executive director of the Bank of England,
who will call today for an end to so-called
free banking.
Twickenham Studios back on market
The studio is back on the market after its
mystery buyer pulled out. The unnamed
purchaser of Twickenham Film Studios
had put forward a 100,000 deposit to
buy the studio out of administration.
Battersea bidder plans car park
One of the leading bidders for Battersea
Power Station is planning to build a multi-
storey car park inside the historic site. The
plans are likely to be hugely controversial
with English Heritage and the Mayor.
FSA warns banks over interest rates
The Financial Services Authority, chaired
by Adair Turner, has warned banks it will
take action over the alleged mis-selling
of interest rate swaps to small businesses
if it finds widespread evidence of
breaches of our rules.
Pandoras loss widens, as sales jump
Pandora Media yesterday reported a
wider loss for its fiscal first quarter on
higher costs, but its revenue jumped 58
per cent and the internet radio company
raised its outlook. Its shares rose 11 per
cent to $11.45 in after-hours trading.
Gupta trial zones in on GS salesman
Prosecutors publicly acknowledged
outside the presence of the federal jury
yesterday that David Loeb, a senior
Goldman salesman, provided information
about Intel, Apple and HP to Rajaratnam.
WHAT THE OTHER PAPERS SAY THIS MORNING
BRITISH engineering got a boost
yesterday when BAE Systems
secured a 1.6bn deal to equip and
train the Saudi Arabian military.
BAE said it will supply 22 new
Hawk advanced trainer jets, most
of which will be made in Britain,
as well as 55 Swiss-made Pilatus
aircraft and other training and
support services.
The contract provides some
welcome relief for the British
defence giant, which is battling
against shrinking European and
American defence budgets and
fierce competition.
Saudi Arabias official news
agency SPA quoted an unnamed
official at the Saudi defence
ministry as saying the Hawks
would help train the Saudi air
force to be able to use the fighter
jets ... efficiently.
Most of the Hawks will be made
at BAEs plants in Samlesbury and
Warton in Lancashire according to
BAEs statement yesterday. The
planes are not due to be delivered
until 2016.
Yesterdays deal is the second
big contract win for BAE in as
many days it also bagged a
328m deal to supply Britains
next generation of submarines.
Shares in BAE closed down one
per cent at 271.5p, outperforming
a broader fall in the FTSE 100.
BAE wins 1.6bn
deal to build
Saudi airplanes
Edmund Truells investment vehicle has postponed its London flotation
2
NEWS
BY HARRY BANKS
BY LAUREN DAVIDSON
To contact the newsdesk email news@cityam.com
W
HEN in doubt, blame
traders. After all, its easier
to attack anglo-saxon
speculators than to actually
try and sort out massive government
over-spending, a corporatist and
uncompetitive economy, an
imploding welfare state and a dodgy
currency. So it should have come as
no surprise that the latest assault on
the City was led by Anni Podimata, a
Greek socialist European
Parliamentarian and a member of
one of the parties that helped destroy
Greece. MEPs yesterday voted to
impose a pan-EU financial
transactions tax, a move which the
UK government has pledged to block.
The idea of a Tobin tax is based on
the flawed view that trading or spec-
ulation is a bad thing. The reverse is
true. Individuals buying and selling to
make a profit (with or without the
EDITORS
LETTER
ALLISTER HEATH
UK must lead by example and abolish stamp duty on shares
THURSDAY 24 MAY 2012
use of high-frequency programmes)
help the process of price discovery,
make markets work better, enhance
liquidity, ensure resources are priced
correctly and help oil the cogs of the
economy. Exchanges must of course
put in place robust systems to avoid
flash crashes but that is no argu-
ment in favour of taxes. Things only
go truly wrong when there is a bubble
but these are usually caused by cen-
tral banking errors and traders are
the ones who help to deflate them
again. Rather than making the econo-
my more stable, most empirical stud-
ies find that transactions taxes
actually increase the volatility of
prices by reducing the depth of mar-
kets, at least in the short term.
The biggest losers from a transac-
tion tax would be investors and
savers, including pensioners. As a
recent IMF paper put it, the burden
would fall on owners of traded secu-
rities, at the time the tax was intro-
duced, as the value of stocks, bonds
and derivatives fell. By making it
more expensive for companies to
raise finance, a Tobin tax would
depress investment and thus growth.
As the IMF says: In the long run, cap-
ital owners would therefore not bear
the burden; it would fall on workers,
who as a result of the smaller capital
stock would be less productive and
receive lower wages. Once again,
merely opposing the EU. It should
also axe our disastrously inefficient
stamp duty on equities, our very own,
albeit more limited version of the
Tobin tax. A report by Lord Forsyth
found that the higher transaction
costs caused by stamp duty depress
share prices by up to 10 per cent. One
study suggests that if the levy were
abolished the increase in the market
cap of the FTSE All Share could hit
150bn; the 4bn a year the tax raises
is poor value. Oxera found that abol-
ishing it would cut the cost of equity
for firms raising capital by 7-8.5 per
cent, with technology firms paying
up to 12 per cent less. The govern-
ment should not just oppose the EUs
plans it should lead by example and
abolish stamp duty on shares.
socialist politicians who believe they
are helping the poor will actually
hurt them.
Proponents of the tax are wrong to
believe that it would have helped pre-
vent the crisis. Its root cause was that
banks were exposed to unreliable
loans based on bubble-level property
prices. Many collateralised debt obli-
gations were held for long periods,
not constantly traded; a Tobin tax
would have done nothing to prevent
their popularity. The Eurozones crisis
has nothing to do with traders either.
Even the European Commissions
own impact assessment found that a
transaction tax on securities could,
without the application of mitigating
effects, reduce future GDP growth.
The Danish economy minister said
the measure could destroy hundreds
of thousands of jobs.
The UK should go further than
The $425m flotation was also
booked for the London Stock
Exchange.
At the time, a spokesperson for O1
Properties said it would consider
relaunching its flotation at another
time, and its delay was not due to a
lack of interest from prospective
shareholders.
Richard Cormack, co-head of equity
capital markets at Goldman Sachs,
told City A.M.: Its not an enormous
surprise that [O1 Properties] did not
make it to the finish line. The London
IPO market has had a more difficult
time lately than certain others.
Worried eyes will now be turned in
the direction of Megafon, another
high-profile listing expected to land in
London later this year.
Goldman Sachs and Morgan Stanley
are advising the Russian telco, con-
trolled by Alisher Usmanov, on its
$4bn flotation.
Tungsten hit the headlines earlier
this month when its founder Edmund
Truell said the fund would consider
making an offer for the insurance
units of RBS and Lloyds, although it
had yet to approach either bank.
Autonomy founder
Mike Lynch will
leave HP
The new jobs website for London professionals
CITYAMCAREERS.com
THAI energy giant PTT yesterday
trumped Shells offer for Cove Energy
with a 1.22bn bid.
The board of Cove recommended
the new offer equivalent to 240p
per share leaving Shell to decide
on whether to try to outgun PTT.
Cove has an 8.5 per cent stake in
massive gas finds offshore northern
Mozambique and its east African
assets have attracted suitors.
Just hours before a deadline for
investors to accept Shells 1.1bn bid,
the companys management said
that it had switched to the improved
offer from PTT.
It had previously supported Shells
offer, which followed a PTT bid that
beat Shells opening salvo in
February. Cove shares yesterday
jumped by more than 10 per cent
after PTTs fresh bid was confirmed.
Whoever buys Cove will have to pay
a capital gains tax to Mozambique,
which Shell has estimated at around
$200m. Cove will also be forced to
PTT beats Shell
offer for Cove
in bidding war
BY JOHN DUNNE
pay Shell a 11.1m break fee under
the terms of the deal agreed in April.
Cove chief executive John Craven
and two other directors are in line for
a combined windfall of more than
35m under the proposals and the
figure ticks up with every bid.
Craven said in a statement yester-
day: The bid from PTT represents sig-
nificant value for shareholders and
confirms the world class nature of
Coves East African assets. Coves
main asset is an 8.5 per cent stake in
the Rovuma Offshore Area 1 in
Mozambique.
Spain completes 9bn rescue of
Bankia, but debt woes continue
SPAIN said yesterday its rescue of
problem lender Bankia would cost
at least 9bn (7.2bn), while also
saying that it is seeking ways to help
its highly indebted regions meet
huge refinancing needs.
The countrys weak banks and
overspending regions are at the
heart of the European debt crisis
due to concerns that expensive bail-
outs of ailing lenders and regions
could force the country to seek
international aid.
BY HARRY BANKS
Losses at Bankia, Spains fourth
largest bank, are central to investor
fears that the fragile financial
system could become more
vulnerable as default rates rise in a
recession.
Economy minister Luis de Guindos
told a congressional committee that
the state would have to put at least
9bn into saving Bankia, which he
said would be fully nationalised in
the process.
At the same time government
sources said de Guindos and other
top officials were at odds over how to
help the countrys 17 autonomous
regions refinance 36bn in debt that
comes due this year.
Bankias new management team
will undertake a complete
assessment of the lenders capital
needs and will present its plan in
mid-June, de Guindos said.The
government will recapitalise
Bankias parent group BFA using the
state-backed bank restructuring
fund, the FROB, and then will fund
Bankia through a capital increase
including preferential shares for
existing shareholders.
GOOGLES Android mobile platform has not infringed Oracle's patents, a California
jury decided yesterday, in a boon for its chairman Eric Schmidt. The verdict puts an
indefinite hold on Oracles quest for damages in a legal fight between the two Silicon
Valley giants over smartphone technology.
JURY DEALS BLOW TO ORACLE IN GOOGLE CASE
THURSDAY 24 MAY 2012
3
NEWS
cityam.com
SHARES in the London Stock
Exchange sank seven per cent
yesterday after two Italian banks
sold their stakes at the bottom end
of the price range offered.
UniCredit and Intesa Sanpaolo,
the third and fourth-largest
shareholders respectively, sold a
combined 11.5 per cent stake at
960p a share, just days after they
were downgraded by a credit
ratings agency.
Shares in LSE group fall after
major Italian banks cash out
BY PETER EDWARDS
The price was at the very bottom
of the 960p-1,000p range provided
by the offer terms sheet on
Tuesday, valuing UniCredits 6.1
per cent stake at 197.6m (158m)
and Intesas 5.4 per cent holding
at 172.5m.
The sale price was 5.6 per cent
below the LSEs closing share price
on Tuesday of 1,017p and the
banks holdings were placed
through an accelerated book
build, with Morgan Stanley acting
as bookrunner.
Cove Energy PLC
23May 17May 18May 21 May 22May
230
235
225
240
245
250
255 p
250.00
23May
A SUPREME Court ruling that the
government had breached an aspect
of EU law yesterday brought the
prospect of 5bn-worth of tax refunds
closer for companies.
The ruling means that British
American Tobacco, lead claimant in
the case alongside five other multi-
national companies, now has the
right to recover any tax wrongly paid
extended back until 1973.
The long-running Franked Investment
Income case will now be referred to the
EU Court of Justice meaning a conclusive
victory remains elusive.
Ruling suggests
5bn tax refund
BY KATIE HOPE
G
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BARCLAYS lost $650m (414m) on its
sale of a $6.1bn stake in US fund man-
ager BlackRock yesterday after it
scrambled to offload the shares to
comply with incoming capital regula-
tions.
The sale, which was managed by a
list of 36 book runners led by Barclays,
Bank of America Merrill Lynch and
Morgan Stanley, valued the shares at
$160 each. They were given a valua-
tion of $182 when Barclays acquired
them in 2009 as part payment for its
sale of Barclays Global Investors to
BlackRock.
Yesterdays sale price of $160
marked a two per cent discount to
their closing price on Tuesday, which
was $163. BlackRock itself bought
back $1bn of the shares.
Since Barclays acquired them, hold-
ing onto large equity stakes in finan-
cial firms has become extremely
expensive for British banks because
the FSA is enforcing a strict version of
the Basel III capital rules.
That is in contrast to the rules
enforced on the continent, where cap-
Barclays loses
$650m on sale
of BlackRock
BY JULIET SAMUEL
ital regulations do not attach such a
high risk-weighting to equity in other
firms.
In the UK, the BlackRock holding
incurs a 250 per cent risk-weighting,
meaning that Barclays had to hold
reserve capital against losses in the
stake as if it owned 10bns worth of
stock.
The high opportunity cost of doing
so meant the bank was keen to sell up
as soon as the three-year lock-in period
it had agreed with BlackRock expired.
The banks next accounts could
book the sale as a profit, because
Barclays wrote them down to a value
of $148 at the end of last year.
Barclays Bob Diamond has to deal with regulations that dont affect his French rivals
Barclays PLC
23May 17May 18May 21 May 22May
180.0
182.5
177.5
185.0
187.5
190.0
192.5 p
180.50
23May
THURSDAY 24 MAY 2012
5
NEWS
cityam.com
A deal that shows Europes
uneven playing field in action
T
HREE weeks ago, George
Osborne told other EU finance
ministers that he was not
prepared to sign up to capital
rules that would make him look
like an idiot due to their huge
loopholes for French and German
banks.
One week ago, Osborne signed up to
those rules.
So while Barclays took a 400m hit
from selling off its BlackRock shares
due to the FSAs punitive treatment of
the asset in regulations, the banks
French rivals, many of which own
stakes in insurers, will have not have
to contend with such inconveniences.
This is precisely the kind of cost that
UK banks are referring to when they
moan about an un-level playing
field. Alone, it is hardly crippling, but
it is one of many examples.
The rule itself is one of Basels less
unreasonable ones, if you accept the
premise of standardising risk assess-
ment. Letting banks count minority
stakes in other firms towards their
core capital means the capital is
counted twice, by the bank and the
firm whose shares it owns. And it can
be hard to turn stock into cash quickly.
Osbornes capitulation shows that
defending the Citys long-term competi-
tiveness is low on his list of priorities.
BOTTOM
LINE
JULIET SAMUEL THE head of global sales at Research
In Motion has left to take on a
leadership role in another industry,
the BlackBerry maker said last night.
London-based Patrick Spence was a
14 year company veteran widely
considered a rising star for RIM. He
was promoted to the global sales role
in July last year after serving as
managing director for Europe, the
Middle East and Africa. RIM has seen
a steady stream of departures in the
past year as its once-dominant market
share has slipped amid fierce
competition from Apple.
RIM loses head
of global sales
BY KATIE HOPE
IN BRIEF
Ireland to invest 2bn in property
nIrelands bad bank plans to invest
2bn (1.6bn) in building projects in
an attempt to bolster jobs in the
countrys property sector. NAMA, set
up in 2009 to take property loans off
the books of Irelands struggling
banks, said it will plough cash into
both half-finished projects and new
builds with a focus on commercial real
estate.
Fears over bailout fund staff
nAn external consulting firm charged
with evaluating the structure of
Europes new permanent rescue facility
has raised questions about whether it
will have enough staff to function
effectively. In a 12 May letter addressed
to Klaus Regling, the head of the blocs
temporary rescue fund, partners at A.T.
Kearney warn that the approved staff
of 75 for the European Stability
Mechanism (ESM) may prove too
small if the debt crisis rumbles on for
several years.
EU members most open to trade
n EU member countries and their close
partners in north and central Europe
make up 12 of the 20 nations that are
most open to international trade,
according to the World Economic
Forum. Its latest Enabling Trade Index
puts the US at 23, down from 19 in 2010.
Finland rose by six places to sixth place,
and Britain, at 11th place, rose from 17th.
G
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IMF leader Christine Lagarde has
warned Greece that it must pay the
price of remaining in the Eurozone
as she marvelled at the inconsisten-
cies in the countrys recent elec-
tions that favoured anti-bailout
parties.
Lagarde said: Efforts have to be
made and have to be shared. Greece
has to be a member that also imple-
ments its programme and also
undertakes efforts, which it has to a
point.
It has to do a lot more. That is
absolutely the case. It had a long way
to go, it has made efforts, and the
Greek population has made huge
efforts, but they have more to do,
said Lagarde, who leads the fund
helping to bail out Greece.
There are more structural reforms
to be had, there is more tax to be col-
Lagarde tells
Greece to take
its medicine
BY MARION DAKERS
lected and that has a price.
She told the BBC that the Eurozone
nations had to be prepared for all sit-
uations and solutions including
Greece leaving the currency bloc.
She added that it is quite remark-
able that the Greek population has
voted in a way that is not conducive
to the formation of a government
while continuing to take bailout
funds.
There is an inconsistency between
sending away those political groups
that support the Eurozone and by
the same token saying we want to be
part of the Eurogroup and have the
euro as our currency, but it has a
price.
She said the other euro bloc nations
should weigh up further support of
Greece, depending on whether they
consider the integrity of the zone as
sufficiently beneficial so as to justify
additional investment.
Consumer sentiment plummets
as Italians fear deepening crisis
CONSUMER confidence plummeted
in Italy this month, official survey
data showed yesterday, as the
country continues to struggle
through tough economic reforms.
The confidence climate index fell
from 88.8 to a record low of 86.5,
according to statistics agency
ISTAT.
The drop was led by a fall in the
economic climate component from
71.6 to 64.4, while the balance
concerning the unemployment
outlook rose from 106 to 113.
Confidence had remained
BY TIM WALLACE
surprisingly strong early in the year,
rising from 91.4 in January to 93.8
in February and 96.1 in March
despite Prime Minister Mario
Montis planned austerity measures.
However, the deepening of the
crisis in Greece, building worries in
Spain and the implementation of
some structural reforms in Italy
have all knocked confidence since
then, leading to the two consecutive
monthly falls in the index.
Inflexible labour markets have
been blamed for much of the loss of
competitiveness in Italy, and Monti
hopes that liberalising the
industries, including taxi driving
and pharmacy, will give the
economy a boost in the medium
and long-term, despite the short-
term disruption it causes for those
already in the sectors affected.
Christine Lagarde told Greece there is a price to pay if it wants to stay in the Eurozone
Italian consumer condence hits record low
12 10 08 06 04 02 00 98 96 94 92
80
90
100
110
120
130
THE EUROPEAN Parliament voted
overwhelmingly in favour of an EU-
wide financial transactions tax
(FTT) yesterday, with leading
proponents arguing the FTT is an
integral part of an exit from crisis.
The tax, of 0.1 per cent on equity
trades and 0.01 per cent on
derivatives, was supported by 487
MEPs and opposed by 152.
Finnish MEP Sirpa Pietikainen
said the tax represents a fair
contribution from the financial
sector for the damage caused in the
financial crisis, and that it will stop
damaging speculation in markets.
She called for the tax to cover the
whole EU, hitting out at opposition
MEPs demand transactions tax
on European financial sector
BY TIM WALLACE
from countries like the UK which
are holding negotiations hostage,
and suggested the tax could
initially cover a smaller group of
more cooperative nations before
later expanding.
To cover the whole EU, the tax
would need the unanimous
agreement of all member states.
Greek MEP Anni Podimata said
this is a strong signal of what the
European Parliament can achieve
despite different national views.
This is what we can achieve
when we put EU citizens interests
above everything else.
Podimata rejected claims that
trading activity will simply move
out of the EU to avoid the tax,
arguing the cost of relocation is
higher than paying the tax.
THURSDAY 24 MAY 2012
7
NEWS
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INCREASED popularity of buy-to-let
mortgages powered lender Paragon
to a 13.4 per cent rise in profit to
44.8m for the six months to March.
Chief executive Nigel Terrington
told City A.M. he is delighted that
the profit growth was driven by
improved revenues rather than cost-
cutting.
For the first time since the credit
crunch [the buy-to-let] balance sheet
has expanded. At the same time we
did the UKs first buy-to-let
securitisation since 2007, he said.
Buy-to-let is a very strong and
robust market for many years to
come were only halfway through
a transformation of the market.
Banks are not actively chasing new
business so it presents
opportunities for smaller lenders.
Paragon has used its strong
cashflow to enable Idem Capital
its portfolio investment business
to acquire loan portfolios from
banks as they deleverage.
Shares in the FTSE 250 firm
closed yesterday up more than five
per cent.
Paragon profit
rises on return
of buy-to-let
BY JAMES WATERSON
G
E
T
T
Y
THE INVESTMENTS made by private
equity and venture capital firms
have continued to outperform rival
asset classes despite a turbulent year
for the industry.
The internal rate of return the
average annual return over each of
the past ten years hit 14.3 per cent
in 2011, compared to 5.9 per cent for
total pension fund assets and 4.8 per
cent for the FTSE All-share index,
according to research from the
British Private Equity & Venture
Capital Association (BVCA). This was
down from the 14.6 per cent
achieved in 2010.
Over a five year period, UK private
equity produced an annual return
of eight per cent, in contrast to
pension fund assets that generated
3.5 per cent and the All-Share index,
which returned 1.2 per cent.
The survey of 501 UK managed
funds showed that BVCA members
invested 18.6bn globally in 2011,
BY PETER EDWARDS
down nine per cent from 2010.
The figures come after a turbulent
period for buyout firms, with the
European sovereign debt crisis
depressing deal values. The industry
also had to withstand a series of
attacks, with Labour leader Ed
Miliband criticising asset strippers
and vultures and US Republican
presidential candidate Mitt Romney
coming under fire for his previous
role as a co-founder of Bain Capital.
These data show that private
equity and venture capital continue
to weather the UKs weak economic
climate and deliver long-term
returns to investors, said Joe Steer,
research director at the BVCA, which
produced the report with PwC and
Capital Dynamics.
In the face of uncertainty of the
direction of the global economy,
prolonged Eurozone weakness and
financial market volatility, returns
this year remained positive, and over
the longer term continue to
outperform other asset classes.
Buyout firms beat
the slump to record
major gains for 2011
A BATTLE between two Israeli-
Russian billionaires over profits
from the Angolan diamond indus-
try kicked off yesterday in the High
Court, with witnesses including a
chief Rabbi and the former head of
Israeli intelligence agency Mossad.
Arkady Gaydamak is suing his ex-
business partner Lev Leviev in an
attempt to enforce an agreement
that he claims was signed in 2001,
detailing how profits from the
pairs mutual interests in Angola
should be split.
Cross examination of Gaydamak
began yesterday, with the Russian
businessman claiming in a written
statement that he was the victim
of a conspiracy between Mr Leviev,
[and his associates] General
Kopelipa and Mr Sumbala seeking
to deceive me into agreeing to settle
my well-founded claims against Mr
Leviev for nothing.
Gaydamak spoke to the court via
BY ELIZABETH FOURNIER
a video link from Israel.
He claims he is entitled to roughly
half Levievs diamond assets in
Angola as a result of an agreement
signed in December 2001, defining
the pairs business relationship and
distributing assets from their busi-
nesses.
But the only signed copy was
placed
wi t h
t h e
chief
Rabbi
o f
Russia
Rabbi Berel Lazar who says he has
since lost or destroyed the document.
Gaydamak says Leviev made partial
payments under the agreement until
2005, but that since then he has been
denied commission and dividends
worth as much as 3m per month.
Leviev, however, denies that the
agreement was ever signed, and is also
disputing its contents.
The so-called King of Diamonds,
who made his fortune battling De
Beers monopoly over the sale of rough
diamonds, also claims Gaydamak
signed away his rights to the assets in
2011, in a disputed settlement agree-
ment, without payment.
Gaydamak says he was induced to
sign the settlement by General Manuel
Helder Viera Dias an Angolan state
minister known as Kopelipa who is
also head of the countrys security
service. Leviev denies Kopelipa was act-
ing as his agent. The case continues.
Arkady Gaydamak (left) is suing Lev
Leviev in the High Court
BUILDING society Nationwide
recorded a 10 per cent rise in
profits to 304m during the year to
April 2012 as it ramped up
mortgage lending and retreated
from commercial real estate.
The mutual also said yesterday
that it is planning to diversify into
small business (SME) lending and
will over time develop and offer a
full range of services to SMEs.
Nationwide boosts mortgage
lending and expands into SMEs
BY JULIET SAMUEL Nationwide is keen to expand
into the space left by larger players
that are deleveraging. Its gross
mortgage lending grew by 44 per
cent to 18.4bn in part by buying
1.2bns worth of housing assets.
It wants to grow its retail
business in part to make up for
shrinking its portfolio of
commercial property assets, which
total 11.2bn. It also took a 103m
charge to compensate customers
for mis-sold insurance products.
THE SERIOUS Fraud Office has
begun the defence of its actions
following the controversial arrest
of property tycoons Vincent and
Robert Tchenguiz last year.
SFO counsel James Eadie told the
High Court that at the time of
Kaupthings collapse Robert and
companies connected to him owed
the bank around 1.6bn.
Robert Tchenguiz owned shares
Robert Tchenguiz and allies owed 1.6bn to
Kaupthing, fraud office tells the High Court
BY HARRY BANKS in Kaupthing as well as its largest
shareholder Exista, also the banks
second-largest debtor.
Icelands Special Investigation
Committee has already noted a big
increase in loan facilities to the
younger Tchenguiz between
January 2007 and October 2008.
According to the minutes of the
loan committee of Kaupthings
board, the bank lent money to
Tchenguiz in order for him to meet
margin calls from other banks.
Vincent Tchenguiz has already
pursued Kaupthing for damages
after the banks winding-up
committee refused to recognise his
trust as a priority creditor. He
reached a settlement last year.
The brothers this week began a
judicial review into their arrests.
Neither man was charged and they
continue to protest their
innocence. The SFO has admitted
errors and is reviewing Vincents
status as a suspect.
Nationwide chief executive Graham Beale is expanding the mutuals loan book.
THURSDAY 24 MAY 2012
8
NEWS
cityam.com
Russian billionaires in
High Court showdown
THE WORLD Bank yesterday cut its
growth forecasts for China this year
as it called on the country to rely on
easier fiscal policy to boost
consumption rather than state
investment.
The bank now expects the
countrys economy to expand 8.2 per
cent in 2012, down from an earlier
forecast of 8.4 per cent and down
sharply from the 9.2 per cent
expansion recorded for last year.
The slower rate of increase forecast
for Chinese growth, the worlds
second largest economy and heavily
exposed to the Eurozone through its
exports, is stark enough to drag
down the World Banks forecast for
all East Asia from 7.8 to 7.6 per cent.
Chinas near-term policy
challenge is to sustain growth
through a soft landing, it said.
With external demand likely to
remain weak for the foreseeable
future, East Asias continued high
growth rates will need to be linked
less to an export-oriented model.
It suggested measures to support
consumption such as tax cuts, while
steering clear of huge state
infrastructure spending, which the
Chinese government relied upon
during a similar downturn in 2008.
Elsewhere, recovery in Thailand
and Japan following last years
natural disasters is lifting growth.
World Bank
cuts its China
growth figures
BY MARION DAKERS
WHEN former New York prosecutor
Eliot Spitzer led his assault on Wall
Street investment banks in the wake
of the dot com crash, his brief was to
separate analysts from the bankers
selling a deal like Facebook.
Whereas pre crash, analysts used to
join a companys management dur-
ing a share sale roadshow and get
subsumed into the whole process,
these days those aligned with the
sponsoring banks are required to
keep their distance and are not even
allowed to publish research.
The rules brought in by Spitzer
were designed to prevent analysts
from bigging up clients shares to
investors mainly for the purpose of
helping their counterparts in the
corporate finance department to sell
the deal.
On the increasingly problematic
Spitzer reforms
fail to prevent
IPO squabbles
flotation of Facebook, it is the nega-
tive view of lead bank Morgan
Stanleys analyst in the wake of a reg-
ulatory filing from the company that
is causing some investors blood to
boil. The analysts negative views
were conveyed orally because they
arent able to be published these days
during the float process, yet this has
led to claims that some investors have
been favoured over others.
One lawsuit filed yesterday claims
that Morgan Stanley selectively dis-
closed to certain preferred investors
its view that Facebooks forecasts
were being revised downwards.
Morgan Stanley says the new infor-
mation was already in the market
but unless Facebook shares recover,
the bank will face a testing few days,
especially since it increased its price
range ahead of the float.
HAS FACEBOOKS FLOAT FLOP
SURPRISED YOU? Interviews by Anaam Raza
I was a little surprised and Id like to know the
reasoning behind it, but I dont think it deserved
it. If it had started off low and let the shares appreciate then it
could have prevented embarrassing headlines.
These views are those of the individuals above andnot necessarily those of their company
JONATHON DRYER
DEUTSCHE BANK

Not really. And in the current economic climate

theyre bound to come down even further. I
didnt buy the shares because there was no point in pay-
ing the difference in currency but now Im glad I didnt.
KETAN PATEL
HSBC
Not at all. Its social media how do you really
ascertain the value of this stuff? Facebooks
shares were denitely over hyped and over priced and I
think theyre going to come further down.
MUKESH HIRANI
BANK OF AMERICA

Write-off costs drag Pinewood

down despite revenue growth
PINEWOOD Shepperton made a loss
last year as the film studio took a hit
from the failure of its movie set
development project.
Project Pinewood a plan to build
replicas of landmarks including
famous cities, a castle and a college
campus was blocked in January,
costing the company 7.6m in write-
off costs.
Expenses relating to the Peel
Group offer, in which the property
BY LAUREN DAVIDSON
investment company gained 73 per
cent of Pinewoods shares after
attempting a hostile takeover, set the
studio back 3.3m.
Pinewood Shepperton posted a
2.9m loss for the 15 months to 31
March, compared to a profit of
5.8m for calendar 2010.
But one-off costs aside, business
was booming at the film production
group, with revenues up
substantially to 62.9m. Film
revenues grew to 44.9m, boosted by
the filming of blockbusters Dark
Shadows, starring Jonny Depp and
Helena Bonham Carter, at Pinewood
Studios and Wrath of the Titans at
Shepperton Studios.
The group said it was in good
shape looking ahead, with the new
James Bond film Skyfall still in
production at Pinewood and a
continuing rising demand for the
studios facilities.
Pinewoods mega portfolio
includes most James Bond films as
well as the Harry Potter series.
Its shares rose 9.2 per cent to 332p.
CITYVIEWS
Eliot Spitzer changed the way that US IPOs could be marketed by investment banks
Morgan Stanley pays price for having
independent analyst, writes David Hellier
THURSDAY 24 MAY 2012
9
NEWS
cityam.com
Float away
Stretch out in KLM Business Class from London
Lima
from
1,743
Bangkok
from
1,913
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from
2,215
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Conditions of Transportation of KLM and AIR FRANCE apply. Prices correct at 10/05/12.
JP MORGAN Chase & Co has been
hit with a lawsuit brought on
behalf of employees whose
retirement holdings fell in value
after the largest US bank revealed a
surprise $2bn (1.3bn) trading loss
earlier this month.
The complaint, filed in the US
District Court in Manhattan, also
names individual defendants,
including chief executive Jamie
Dimon and Ina Drew, who stepped
down last week as head of
JPMorgans chief investment office,
where the loss occurred.
JPMorgan sued over employee
retirement plan losses in the US
BY CITY A.M. REPORTER
The defendants were accused of
violating their duties to 401(k) and
other retirement plan participants
by including company stock as an
investment option, hiding the
stocks risk, and failing to move
participants to safer choices.
The plans suffered hundreds of
millions of dollars of losses, the
complaint said. If defendants had
discharged their fiduciary duties to
prudently manage and invest the
plans assets, the losses suffered by
the plans would have been
minimized or avoided.
JPMorgan did not immediately
respond to requests for comment.
IN BRIEF
Tetley tea owner sees income fall
nTata Global Beverages suffered a 36
per cent drop in net income in the
latest quarter, as the owner of Tetley
tea was hit by one-off costs, it
announced yesterday. Sales rose 11 per
cent to 17.24bn rupees (198m) but
restructuring expenses knocked net
income for the three months to March
down to 542.1m rupees. The firm,
which has a tie-up with Starbucks, is
on track to open its first Indian stores
this year.
Hogg Robinson upbeat for 2012
nHogg Robinson, the corporate travel
services group, yesterday reported a 18
per cent rise in annual pre-tax profit to
34.1m while revenues grew from
358m to 374.2m. Chief executive
David Radcliffe said the difficult
macroeconomic outlook will keep
trading conditions challenging but said
Hogg Robinsons strong pipeline of
new business opportunities will allow
the company to make good progress
in the year ahead.
Dell shares hit by weak outlook
nShares of Dell plunged 17 per cent
yesterday after a disappointing revenue
forecast spurred fears that global tech
spending is weakening faster than
anticipated and raised doubts about
the PC makers strategy. The stock
plunge erased more than $4bn from
the companys market cap. Dell shares
closed 17.2 per cent lower at $12.49 on
the Nasdaq. Earlier in the day, it fore-
cast revenue of $14.7bn to $15bn in the
current quarter, well short of analysts
average forecast of $15.4bn.
G
E
T
T
Y
G
E
T
T
Y
House of Fraser earnings drop
as it invests in new warehouse
HOUSE of Fraser saw adjusted
earnings before interest, tax,
depreciation and amortisation drop
16 per cent to 58.6m in the year to
28 January as it invested in a second
distribution centre.
The department store, which
runs 63 sites across the UK and
Ireland, said it built a new
warehouse in Northamptonshire,
BY KASMIRA JEFFORD
last summer, to help support its
online business, after relaunching
and redesigning its website.
Don McCarthy, chairman of
House of Fraser said: Considering
the market conditions, uncertainty
in the economy and the
unseasonably warm autumn we
believe our results are in line with
fashion retailers in our sector. 2011
was another year of investment for
us, as we continued to focus on the
fastest growing areas of our
business.
Despite the fall in earnings, gross
profits were up 3.8m to 399.1m
and like-for-like sales over the year
nudged up three per cent. Own
brand sales also jumped 17 per cent
helped by the launch of Mary by
Mary Portas in womenswear and
Howick Tailored in menswear.
In the first 13 weeks of the year,
like-for-like sales rose by 2.6 per cent.
THURSDAY 24 MAY 2012
cityam.com
10
NEWS
BURBERRY yesterday said it had seen
an outperformance in mens clothing
and tailoring as the luxury brand
reported a 26 per cent jump in full-
year profits.
The 156-year old British heritage
brand reported an underlying pre-tax
profit of 376m in the year to 31
March, on revenues up 24 per cent to
almost 1.9bn.
Chief executive Angela Ahrendts
said the success of its new London tai-
loring initiative helped drive
menswear sales up by 26 per cent in
the period, while sales of non-cloth-
ing products such as leather goods
saw a 50 per cent increase in sales.
Ahrendts said Burberry would be
opening its first menswear-only store
in Knightsbridge in the fall, as it looks
to benefit from a growing trend of
men dressing smartly.
The launch is part of a wider expan-
sion plan to increase store space by 12-
14 per cent in the year, opening a net
15 new outlets in both flagship and
emerging markets.
Burberry said it will spend around
Male shoppers
help Burberry
beat recession
BY KASMIRA JEFFORD
180-200m, with about one third of it
going towards larger format stores
such as its new Regent Street store
opening in the autumn.
Sixty to seventy per cent of all the
luxury goods sold around the world
take place in just 25 cities. Burberry
has been underpenetrated in these
flagship markets versus our peers,
Ahrendts said.
Burberry said wealthy shoppers from
Asia, the Middle East and emerging
markets remained sheltered from the
global economic downturn.
Its shares closed 1.2 per cent lower
yesterday at 1,369p hit by profit taking.
Burberry Group PLC
23May 17May 18May 21 May 22May
1,350
1,375
1,300
1,325
1,400
1,425
1,450
1,475 p
1,369.00
23May
A 24 per cent rise in pre-tax prots dees some of the economic gloom,
whilst the companys exposure to some strong local markets continues to propel
prospects...Whether this momentum can be maintained is of some concern
to investors, while the situation in Europe is undoubtedly a drag on growth.
ANALYST VIEWS

Burberry has excellent strategic growth opportunities in a luxury mar-

ket with strong long term growth credentials. There are signicant geographical
and product mix opportunities plus operational leverage still to come
from infrastructure investment over recent years.

Burberry reported another strong set of results, in line with expectations.

The very creditable outcome reected continued buoyancy in the global luxury
market, the addition of new space, extension of the Burberry franchise into
new product areas and further improvements in operational efciency.

HOW ARE BURBERRYS

PROSPECTS FOLLOWING
THESE RESULTS? Interviews by Kasmira Jefford
RICHARD HUNTER HARGREAVES LANSDOWNE

FREDDIE GEORGE SEYMOUR PIERCE

SAM HART CHARLES STANLEY

Own brand sales jumped 17 per cent helped by the launch of Mary Portas in womenswear
Angela Ahrendts has defied the downbeat economy to deliver booming sales
A
L
A
M
Y
ONLINE supermarket Ocado yester-
day announced an acceleration in
sales growth for the second quarter,
raising hopes that the firm has over-
come last years distribution prob-
lems that damaged consumer
confidence.
Shares in the company, whose
range includes products supplied by
upmarket grocer Waitrose, rose 6.8
per cent after it said sales in the quar-
ter to 13 May were likely to be 13 per
cent higher than the same period
last year.
This compares with 10.9 per cent
growth in the first quarter.
Operational performance at our
Hatfield customer fulfilment centre
continues to improve and is now
operating at record levels of capaci-
ty, the firm said in a statement.
A number of new enhancements
have gone live which will enable us
to continue to expand our capacity,
significantly extend our range, and
improve our operational efficiency.
Ocado also confirmed its second
fulfilment centre in Warwickshire is
Ocado points to
fresh growth as
revenues surge
BY JAMES WATERSON
on track to open in early 2013.
But Philip Gordon, an analyst at
Panmure Gordon, retains doubts
about the long-term viability of
Ocado in the face of strong chal-
lenges from rivals who include
Ocados key supplier Waitrose.
Ocado is still losing market share
online. With the competitive environ-
ment likely to get tougher, we think
that it will struggle to demonstrate
operational leverage...its competitors
have sharpened up their act, he said.
Ocado has yet to turn a year-end pre-
tax profit since it was founded in
2001 and its shares have slumped
from a 2010 IPO price of 180p.
Ocado Group PLC
23May 17May 18May 21 May 22May
117.50
115.00
112.50
110.00
107.50
105.00
102.50
100.00
p
107.80
23May
TRANSPORT operator FirstGroup
said yesterday that full-year profit
more than doubled a lift fuelled
by strong performances from its
UK rail and US coach businesses.
The bus and rail company
reported a pre-tax profit of
279.9m for the year to the end of
March, up from 126.5m last year.
It said revenues increased 4.1
per cent to 6.68bn but that the
outlook was uncertain.
The company said it expected
2012/13 margins at its British bus
unit to be hit by the tough
economic climate, especially in
FirstGroup profit doubles but
UK bus arm faces tough road
BY JOHN DUNNE the North of England and
Scotland, rising fuel costs and
reduced funding to the industry.
Chief executive Tim OToole said
the bus unit was in for a shake-up
with some parts of the business to
be offloaded.
He added: We are accelerating
a comprehensive plan that will
deliver sustainable growth in
revenue and patronage and
improved returns.
This includes repositioning our
UK Bus portfolio through a
programme of business and asset
disposals. The company hiked the
full-year dividend by seven per
cent to 23.67p.
THURSDAY 24 MAY 2012
11
NEWS
cityam.com
FirstGroup plans a shake-up of its UK bus business by offloading parts of the division
STANSTED Airport operated as
normal yesterday in spite of
industrial action by baggage
handlers.
Members of the Unite and GMB
unions working for contractor
Swissport staged the first of three
planned walkouts yesterday as part
of a dispute over work rotas.
Unite claims that Swissports
measures would mean ramp staff
work 14 extra days a year with no
additional pay.
Further strikes are planned for
over 26-28 May, and 2-6 June,
meaning disruption is possible over
the diamond jubilee bank holidays.
But Swissport said that
contingency plans meant passengers
did not experience delays yesterday.
The company handles cargo and
baggage for a number of airlines at
Stansted including Ryanair, Monarch
and Thomson.
Paul Bouch, Unite regional officer,
said: Swissport has forced our
members backs to the wall. After
eight weeks of talks the company is
still determined to press ahead with
its unreasonable roster and holiday
allocation changes.
The revised roster would avoid
the necessity of imposing
compulsory redundancies,
Swissports spokesman said.
Talks between the unions and
Swissport broke down last week.
No delays at
Stansted as
strikes begin
BY MARION DAKERS
Glaxo warns it will drop $2.6bn
bid unless poison pill removed
GLAXOSMITHKLINE (GSK) said
yesterday it would not proceed with
its $2.6bn (1.7bn) offer for Human
Genome Sciences unless the US
biotechnology company dropped a
poison pill shareholder rights plan
imposed to block the deal.
Human Genome adopted the
stockholder rights plan earlier this
month in an attempt to ward off
BY CITY A.M. REPORTER
GSK in what is becoming an
increasingly acrimonious battle
between the companies that
together sell new Lupus drug
Benlysta. The British company is
taking its $13-a-share offer direct to
investors after Human Genomes
board said it was inadequate.
The plan allows shareholders to
buy additional shares at a discount if
one investor buys or launches a
tender offer for more than 15 per
cent of the groups stock without the
boards approval, effectively blocking
an unwanted bidder.
Because Human Genome has
adopted a poison pill, GSK has added
a condition to its offer requiring
Human Genome to redeem the pill
or, alternatively, GSK being satisfied
in its reasonable judgment that the
pill has been invalidated or is
otherwise inapplicable to GSKs
acquisition, GSK said yesterday.
Serco in talks with Amec over
sale of nuclear advice business
OUTSOURCER Serco said yesterday
that it was in talks with Amec over
the sale of its technical consulting
business (TCS).
Sercos TCS provides provides
safety advice to the nuclear
industry.
Amec, an engineering
consultancy to the energy sector,
has yet to make any formal offer
the two companies said.
Serco bought TCS for 75m in
2001. It has revenues of 70m per
year.
Amec said last month it is
expecting double digit revenue
growth in 2012 and has a strong
order book.
Analysts had expected the
company to start making
acquisitions.
A statement from FTSE 100-
listed Serco said: There is no
certainty that a transaction will
proceed. A further announcement
will be made in due course.
BY JOHN DUNNE
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University. His lecturers remember a
bright student who had little interest
in computers; he took a first with
some ease. After college, Ive joined
London design agency Tangerine as a
consultant for bathroom fittings
maker Ideal Standard. It was in 1992,
when Apple hired Tangerine, that Ive
began dealing with the firm, then
struggling in the face of Microsofts
domination of the PCs. Fed up design-
ing taps, he soon moved to San
Francisco and joined the Apple staff.
When Jobs returned to Apple five
years later, he soon spotted Ive, and
promoted him to chief designer. The
pair enjoyed a warm and relatively
calm relationship, a rarity with the
famously irascible Jobs, although
regulator said it would now not
propose any remedial action. It
will review responses to its
revised finding before reaching
its final verdict.
The provisional finding was a
reprieve for BSkyB which has
clashed repeatedly with
regulators in recent years over
its dominance of pay-TV, putting
at risk its ability to lure
customers with the offer of
exclusive movie and sports
content.
The Competition Commission
had previously found that Sky's
subscriber base of more than
10m homes gave it an advantage
over rivals who struggled to bid
for the rights to first-run
Hollywood movies.
While the commission noted
yesterday that BSkyB still held
the rights to the movies of all six
major Hollywood studios for the
first subscription pay-TV
window, it said Netflix and the
Amazon-owned Lovefilm had
already acquired rights to
several other studios.
Virgin Media said it strongly
disagrees with the commission
and that Skys dominance had
led to higher prices and less
innovation.
A BT spokesman said: We
cannot see how this is in the best
interests of consumers.
DAVID CROW
British Sky Broadcasting Group PLC
23May 17May 18May 21 May 22May
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685
690
695
700
705 p
693.00
23May
THURSDAY 24 MAY 2012
13
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A
SK most Britons to name a
famous designer, and they will
probably offer Sir James Dyson
or Terence Conran. Although
both are distinguished, neither can
lay claim to something as
generation-defining as the iPhone. It
was designed by Essex boy Jonathan
Ive, who was yesterday knighted for
services to design. Its strange, then,
that Ive or Jony to his friends
isnt better known, but it is a state of
affairs that perfectly suits the
publicity-shy 45 year-old.
When his late boss Steve Jobs was
still alive, Ive was always in his shad-
ow. Jobs cult status meant that other
Apple executives took a back seat. Yet
Ive is almost as important as Jobs was
to the companys success. He has
designed every Apple product since
the firms renaissance, from the orig-
inal Bondi-Blue iMac and white iPod
to the iPhone and iPad.
Born in Chingford in 1967 and
brought up by his teacher father, Ive
was educated at the local compre-
hensive before studying at Newcastle
Polytechnic, now Northumbria
Jobs tendency to take credit for
Apples designs could sometimes
wound Ive. Those who know Ive say
his capacity for hard graft is the key
to his success. Often working 70-hour
weeks, he involves himself in every-
thing from initial design to manufac-
turing, regularly travelling to China
to oversee work in Apples factories;
when working on a new product, he
has little time for anything else.
During Ives first five years at Apple,
his talent went unspotted. At the
time, the firm was rudderless,
obsessed with market research, con-
stantly trying to conform to industry
stereotypes in order to take on
Microsoft instead of finding a niche
of its own. Legend has it that Ive had
already designed the Bondi-Blue iMac
long before Jobs returned, but the
then Apple management thought it
too avant-garde.
Apple has barely put a step wrong
since Jobs died, and much of that is
down to his hard-headed replacement,
former chief operating officer Tim
Cook. But it is in Ive make that Sir
Jony that the soul of Jobs lives on.
Essex boy who became
designer to a generation
Apple designer Jonathan Ive was knighted for services to design yesterday
New movie streaming services let Sky of the hook
SKY
Subscribers: 10m to general pay-TV packages
Price: 20 for basic TV package, plus individual rental prices
Exclusive contracts with: all big six Hollywood studios;
MGMs entire Bond back catalogue from October 2012
AMAZONS LOVEFILM
Subscribers: 2m as of January 2012
Price: from 4.99/month for online streaming
Exclusive contracts with: Exclusive contracts with:
Sony, Warner Bros, STUDIOCANAL, ITV, ABC, and BBC
NETFLIX
Subscribers: International streaming members totalled
3m in March 2012 does not provide a UK breakdown
Price: Unlimited streaming from 5.99/month
Exclusive contracts with: DreamWorks Animation (from
2013); Lionsgate UK; MGM; Momentum
Sky Movies is cleared in probe
thanks to Lovefilm and Netflix
SATELLITE broadcaster BSkyB no
longer dominates the pay-TV
movie market following the
arrival of new entrants Lovefilm
and Netflix, the competition
watchdog said yesterday in a
reversal of its initial findings.
But the decision drew angry
responses from Skys main rivals
BT and Virgin, who said its Sky
Movies channel reduces
competition.
Laura Carstensen, chairman
of the Competition Commission
investigation, said: Lovefilm
and Netflix offer services which
are attractive to many
consumers and they appear
sufficiently well resourced to be
in a position to improve the
range and quality of their
content further.
Given the findings, the
BY HARRY BANKS
I
f you werent at the Le Meridien
Hotel last night, theres a good
chance youre behind on the latest
City gossip.
The Piccadilly hotspot played host to
the third annual M&A Network din-
ner, chaired by former Sunday Times
business editor and FTI Consulting
guru John Waples. Proceeds went to
the charity Norwood.
The panel included Mark Florman,
chief executive of BVCA; Richard
Clarke, KPMGs UK head of corporate
finance; Michael Kalb, senior manag-
ing director at private equity firm Sun
European Partners; and Claude
Littner, chairman of Viglen and regu-
lar interviewer on The Apprentice.
The well-informed group debated
the reputation of private equity and
the state of the M&A market whats
hot and whats not.
Norwood, a favourite of celebs such
as Simon Cowell and Richard
Desmond, offers community support
to people with learning disabilities
and children and families in need.
Not too different, Norwood M&A
Network member Marc Cohen tells The
Capitalist, from the M&A world.
Everyone knows everyone it has its
own special community bond.
The new notes will be donated to charity and sold to the public as part of the Royal Bank of Scotlands jubilee celebrations
There was a sea
of blue over the
weekend after
Chelsea won the
European Champions
League. But yesterday
there was a splash of
red as Spanish
models converged on
the City to advertise
BetVictors money
back deal on a
Spanish victory in the
upcoming European
football finals.
Got A Story? Email
thecapitalist@cityam.com
14
cityam.com
cityam.com/the-capitalist
THECAPITALIST
Patriotic celebration, or
quantitative easing by the back
door? The Royal Bank of Scotland has
unveiled its contribution to the
Diamond Jubilee festivities in the form
of a commemorative 10 note.
The bailed-out bank yesterday showed
its appreciation for its de facto owner
with 2m worth of royal purple and
green tenners.
RBS needed to replace some of its
ageing notes anyway, so sadly the issue
wont do much to pour cash into the
economy, beyond a charity auction of
some of the collectible currency.
The bank notes will be treated as legal
currency, with the serial numbers
starting with TQDJ short for The
Queens Diamond Jubilee.
Loyal subjects can buy themselves a
leaf or two of numismatic history by
mail order between now and the end of
June.
Dont hold your breath for similar
celebratory notes south of the border,
however. The Bank of England, whose
boss Sir Mervyn King last week warned
that the jubilee bank holidays could
keep the country in recession, has
settled instead for a royal address
and an exhibition at the Banks
museum to mark the occasion.
Given the amount of flak Sir Merv has
already taken for QE2, its not
surprising QEII holds little sway over on
Threadneedle Street.
THURSDAY 24 MAY 2012
Top panel at Norwood
M&A Network dinner
Royal Bank of Scotland commemorates QEII
WORSENING political and economic
turmoil in the Eurozone has knocked
investment in Europes shopping cen-
tres and stores to its lowest level since
1997, new research shows.
European retail property invest-
ment fell to 3.69bn in the first quar-
ter of 2012, down from 12.6bn in the
same period in 2011 and 9.3bn in the
previous quarter, according to proper-
ty consultancy CBRE.
It was the lowest since the six-
month period after Lehman Brothers
filed for bankruptcy in September
2008, and was the sectors worst quar-
ter in eight years barring the period
of Lehmans collapse, CBRE said.
Michael Haddock, senior director of
EMEA research, said the market was
hit by a lack of attractive stock, as
owners of properties sat on them
amid the economic uncertainty.
Theres nothing available of the
quality that people want to buy...the
thing that would help retail invest-
ment activity recover would be a
renewed interest in poorer quality
retail assets, which would be predicat-
ed on an economic recovery.
European shop
investment
hits fresh low
BY A CITY A.M REPORTER
LONDON property group Great
Portland Estates (GPE) impressed
investors yesterday with an improving
portfolio and a record year for leasings.
Annual pre-tax profits took a batter-
ing, down 36 per cent to 155.2m, as
the firm spent on development and
refurbishment work.
But the groups net asset value rose
11.9 per cent in the year to 403p.
Chief executive Toby Courtauld said
GPE enjoyed a strong 2011, and that
central London is likely to remain a
stronghold for international investors
looking to make safe investments.
Last year, GPEs rental values grew
7.8 per cent on a like-for-like basis,
picking up towards the second half.
New developments totalling almost
half a million square feet of space are
in progress, and the firm has already
Strong London
market helps
Great Portland
BY MARION DAKERS
secured 16.7m of pre-let income.
Great Portlands shares defied the
gloomy market to jump 2.8 per cent.
Earnings suffered a temporary hit,
but we believe Great Portlands portfo-
lio of individually selected assets in
the supply-starved West End will pro-
vide large development profits over
the coming years, said Peel Hunt ana-
lysts in a note.
Shaftesbury profits rise as West
End sites fend off retail gloom
THE PROSPEROUS West End
continued to shelter Shaftesbury
from the wider gloom in the retail
sector as the London property firm
posted a 15 per cent jump in first
half profits.
The company, which owns 500
properties across Londons key
tourist hotspots including Carnaby
Street and China Town reported a
pre-tax profit of 16.1m in the six
months to the end of March, up
from 14m a year earlier.
The estimated rental value of its
portfolio also rose by 4.7m over the
six month period to 96.9m.
Net asset value was up 1.5 per
cent to 470p a share, driven by a
1.4 per cent uplift in the value of
the portfolio to 1.74bn.
Chief executive Brian Bickell said
that throughout the first half of
the year Shaftesburys portfolio
had been virtually fully let as
demand for space in West End
BY KASMIRA JEFFORD
locations remained healthy.
Tenant demand from
restaurants, cafes and bars, which
make up 35 per cent of income was
particularly strong.
Londons reputation as a
destination of world renown
continues to grow, and this
summers major events the
Queens Diamond Jubilee and the
Olympics will put the city firmly
in the worlds spotlight, he said.
These events are a unique
opportunity for London to promote
its many attractions to a global
audience.
Shaftesburys three principal
villages, Carnaby, Covent Garden
and Chinatown, all grew in value
by around 1.6 per cent. Its Soho
holdings around Berwick Street
suffered a 2.7 per cent decline.
The company said the area
continued to suffer from a
fragmented ownership, a
dilapidated public environment,
rundown buildings and a
struggling street market as it
works on plans to improve and
regenerate the area.
Over the year, the group made
29.4m of acquisitions, of which
over 90 per cent was in Soho, and
the rest in Covent Garden and also
won planning approval for two
major schemes in Carnaby.
John Manser, Shaftesburys
chairman since 2004 and a non-
executive director since 1997, also
announced he will retire after next
years annual meeting. Jonathan
Lane, currently executive deputy
chairman, will take his place.
IN BRIEF
Hicl portfolio in rapid expansion
n Hicl, which invests in infrastructure
projects, said yesterday that its portfolio
had increased by 34 per cent in the year
to the end of March. The company said
its assets are worth around 902m
compared with 673m the year before.
Hicl announced a second interim
dividend of 3.5p, taking the total pay-
out for the year 6.85p. That is a rise of
2.2p on the previous year. Meanwhile
total revenue was 48.1m compared
with 37.4m.
Telecom Plus signals tough 2013
n British utility supplier Telecom Pluss
full-year profit rose 12 per cent but it said
its profit growth in 2013 would be
restricted to about 10 per cent by a need
for additional investment and the loss of
marketing support from a partner.
This year the company which supplies
gas, electricity, fixed and mobile tele-
coms and broadband has to operate
without a 3m marketing contribution
from power supply partner NPower.
However, pre- tax profit for the year to
the end of March rose to 30.7m from
27.5m a year ago. Revenue rose 12.6 per
cent to 471.5m. Services supplied
climbed 18 per cent, compared with a 12
per cent increase last year. Its customer
base went up by about 12 per cent to
415,000. It raised its full year dividend by
23 per cent to 27p a share.
Aveva acquires Bocad for 14m
n Engineering software group Aveva
yesterday announced that it had bought
3D specialist Bocad. The deal is worth
14m. Richard Longdon, chief executive
of Aveva said: This acquisition further
extends Avevaa position in the
Engineering & Design market providing
the most comprehensive 3D design soft-
ware for plant and marine. Were excited
about the opportunity to unlock the com-
mercial potential for Bocad's leading
technology. Bocad has offices in
Belgium, Germany, Malaysia, Canada and
France. A total of 90 staff from the firm
which specialises in 3-D designs for steel,
will come with the acquisition.
GPE secured a pre-let for its 240 Blackfriars development earlier in the year
Shaftesbury PLC
23May 17May 18May 21 May 22May
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515
520
525
530
535 p
511.00
23May
THURSDAY 24 MAY 2012
15
NEWS
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For the details, go to
ups.com/london2012
Thirty million items have already begun to converge
on the UK for the Olympic and Paralympic Games.
This massive operation could have a negative
climate impact. But as the Official Logistics
Supporter of London 2012, UPS is determined to
minimise it. We will measure, manage
and mitigate the emissions from our
own logistical operations supporting
the Games.
MEASURING OUR IMPACT
The first step in solving any problem is
to understand it, to quantify it. To that end,
UPS is measuring the carbon footprint
from all our own logistical operations
for London 2012. That includes
transporting from warehouses to
the sports venues and back again;
and from installing to dismantling.
To do so, we had our methodology certified by The
CarbonNeutral Company. Our process follows the
CarbonNeutral Protocol, the global standard for
ensuring the integrity of carbon-neutral certification
programmes. Our goal is to arrive at a credible,
comprehensive and certifiable number so we can
then take concrete steps to manage and mitigate it.
MANAGING OUR OPERATIONS
For London 2012, we will be using our fleet of
electric vehicles as well as some state-of-the-art
biomethane tractor trailers. These are the biggest
vehicles we use, and by making the substantial
investment of converting them to run on a diesel/
biomethane mix, we will substantially reduce
their carbon footprint.
But how these vehicles are powered is only
part of the story. We also investigate
how theyre driven. To accomplish this,
we use customised vehicle telematics,
a wireless technology that gives
us a vast array of data. This
information is invaluable:
it helps us plan the most
efficient routes, reduce idling
time and lower fuel emissions
of our vehicles.
MITIGATING OUR FOOTPRINT
While we can greatly reduce our emissions
for London 2012, we cannot eliminate them
altogether. But we will mitigate the remaining
footprint through purchases of high-quality, Gold
Standard

carbon offsets that come with their own

third-party validations. Through these purchases
we will mitigateto the high standards of the
CarbonNeutral Protocolthe climate impact of our
logistical operations for London 2012.
Which brings us to this: what were doing
for London 2012 we can do for your company.
Reducing logistical carbon footprints is good for the
environment and business. Yours, for instance.
THE LOGISTICS FOR LONDON 2012 COULD HAVE
A HUGE CLIMATE IMPACT. HERES WHY IT WONT.
UPS will purchase high-quality carbon offsets for
various environmental projects around the world.
Reducing our logistical carbon footprint means that
whoever wins whatever medals, we all win.
From the dockside to the
venues and back again: we
are measuring all our own
logistical carbon emissions.
30 million items are needed for the London 2012 Games. A transportation challenge, certainly, but also an environmental one. UPS is using logistics to solve both.
ADRIAN Beecroft, the venture
capitalist who has produced a
radical set of employment reforms
for the government, yesterday hit
out at business secretary Vince
Cable, calling him a socialist who
appears to do very little to support
business.
Beecrofts long-awaited jobs
report was released on Monday and
contains proposals to roll back
employment law by making it
easier to sack workers, discouraging
frivolous employment tribunals and
exempting firms with fewer than
ten employees from new European
Union regulations.
But the business secretary
appeared to block proposals to
allow no fault dismissals after his
aides said the plan was bonkers.
In response Beecroft told the
Daily Telegraph that Cables
objections were ideological not
economic and people find it very
odd that hes in charge of business.
He also said the Conservatives are
keen to tackle business concerns
about employment law but the Lib
Dems will have none of it.
At yesterdays Prime Ministers
Questions Labour leader Ed
Miliband said the proposals showed
that the nasty party is back.
David Cameron replied that he
would consult on no-fault dismissal
but only for micro-businesses.
Beecroft lashes
out at Cable
over briefing
BY JAMES WATERSON
G
E
T
T
Y
BUSINESS secretary Vince Cable yes-
terday unveiled the governments
Enterprise and Regulatory Reform
bill and claimed that it will make
Britain one of the most enterprise-
friendly countries in the world.
Measures in the bill, announced as
part of this months Queens Speech,
include changes to the employment
tribunal system, introducing a new
Competition and Markets Authority
and giving a binding shareholder
vote on executive pay.
It also sets out the purpose of the
governments 3bn Green
Investment Bank.
We want to make sure the right
conditions are in place to encourage
investment and exports, boost enter-
prise, support green growth and
build a responsible business culture,
Cable said.
[The bill] will help ensure that peo-
ple who work hard and do the right
thing are rewarded, he added.
In an attempt to cut down the num-
ber of employment tribunals, busi-
nesses will be encouraged to use
Enterprise Bill
promises to cut
tribunal costs
BY JAMES WATERSON
conciliation services.
Proposals to cut red tape include
merging parts of the Office of Fair
Trading with the Competition
Commission to form a new organisa-
tion that promises to speed up adju-
dication on competition issues.
The bill will also hand shareholders
a binding vote on executive pay deals,
raising the prospect of further
investor rebellions in the vein of the
recent so-called shareholder spring.
Details of the required level of
shareholder backing will be pub-
lished before parliament enters the
summer recess.
But Labours shadow business secre-
tary Chuka Umunna said the bill fails
to provide a compelling vision for
economic growth, adding that busi-
nesses are right to question why
there are not more measures to give
them the help they need to grow and
take on extra workers.
Alexander Ehmann of the Institute
of Directors said it offers little to sat-
isfy those in search of worthwhile
deregulation with only the changes
to employment tribunals getting to
the red meat of the issue.
THURSDAY 24 MAY 2012
17
NEWS
cityam.com
Business secretary Vince Cable promises his bill will reward people who work hard
n Employees must contact conciliation
service ACAS before seeking a tribunal
hearing, in an attempt to settle more
disputes without costly legal proceedings.
n Measures to ensure less complex
employment disputes can be dealt with
quicker and cheaper through a new Rapid
Resolution scheme, giving businesses the
confidence to take on new staff.
n Improving small businesses access to
advice on complying with regulations in
areas such as trading standards.
n Creating a new Competition and
Markets Authority to ensure dynamic and
open markets with faster decisions.
n Setting the purpose of the UK Green
Investment Bank in legislation and
ensuring its independence so it can help
the transition to a green economy.
n Giving shareholders of UK quoted
companies binding votes on directors
remuneration.
n Encouraging investment in design by
extending copyright protection for mass-
produced art (e.g. designer chairs, lamps)
to the life of the creator plus 70 years.
n Putting a time-limit on new regulations
via sunset clauses, forcing departments
to repeatedly make the case to keep
regulation or face having it scrapped.
WHATS IN THE ENTERPRISE BILL?
Charlie Bean believes pension funds have complained too much about QE lowering yields
THURSDAY 24 MAY 2012
18
NEWS
cityam.com
ls h8r8
W8Ic0m8 t0 th8 lutur8 0l 0nIIn8 trdIn.
Wh8r8 0n th8 8V0IutI0nry scI8
Is y0ur trdIn Itl0rm?
Wh8r8 0n th8 8V0IutI0nry scI8
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n th8 8 n th8 8V V
ur
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l l It It 0rm? 0rm?
tI0nry sc tI0nry sc
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QUANTITATIVE easing (QE) has not
hurt pension funds nearly as much
as they claim, the Bank of Englands
Charlie Bean said yesterday and
complaining about the impact of
the policy may be distracting
trustees from genuine long-term
threats.
Although QE is designed to push
down gilt yields, which reduces
returns for pension funds investing
in the bonds, Bean pointed to other
positive effects. He said that funds
BY TIM WALLACE already holding gilts saw the value
of those assets and equities rise.
Equity prices rose substantially
once QE was actually under way
by around 50 per cent during QE1
and around 10 per cent during
QE2, he told a National Association
of Pension Funds conference.
In both cases, the switch from
decline to growth coincides with
the commencement of asset
purchases.
Bean also warned pension funds
that spending so much of their time
and effort objecting to QE could
mean they miss other important
threats.
The excessive focus on QE as a
cause of low long-term risk-free
interest rates risks distracting
attention from other factors driving
yields which may present a more
durable challenge to the sponsors
and trustees of pension funds, he
explained.
Those other factors include the
rush of investors into the UKs safe
haven gilt market, slowing
economic growth, and the deep
Eurozone crisis, he said.
BY TIM WALLACE
from the Eurozone, the MPC was in
part constrained by high inflation,
which appeared likely to remain ele-
vated over the near term.
Furthermore, by the end of the fore-
cast period, the risks of inflation being
above or below the target were broadly
balanced, the MPC believes, limiting
the action it can take to raise demand.
Yet not all economists believe extra
QE will help raise GDP. We have our
reservations about the effectiveness of
QE gilt yields are already depressed
at record lows and, in an uncertain
environment, the impact on asset
prices is likely to be limited, said Nida
Ali from Ernst and Youngs Item Club.
The Bank needs to think of other
ways to ease monetary policy.
The jobs market remains very weak
2005 2007 2010 2012
-3
-2
-1
-5
-4
0
1
2
3
4
Scores
Manufacturing
Businessservices
Consumer
services
COUNTRIES that are struggling to
boost growth should consider open-
ing up their economies more to glob-
al trade, according to the OECD.
Measures to seal off national
industries, while politically popular,
only sustain or exacerbate the sub-
optimal status quo, claims the
paper on international trade.
Since 1970, manufacturing
workers in open economies enjoyed
pay rates that were between three
BY MARION DAKERS
and nine times greater than
economies classified as closed.
The study also suggested that
allowing companies to use offshore
trading bases can actually help raise
employment and wages.
Offshoring and outsourcing by
developed countries two
commonly-cited negative aspects of
globalisation often complement,
rather than replace domestic jobs,
while creating new, higher-wage
opportunities in developing
countries, the report added.
OECD urges more open trade as
way to boost economic growth
THE BANK of England stands ready to
try to boost the economy with more
monetary stimulus, the minutes of
the most recent Monetary Policy
Committee (MPC) meeting showed
yesterday, as inflation is at last start-
ing to fall.
The committee voted by a margin of
eight to one against re-starting the
quantitative easing (QE) programme,
but for several members, the deci-
sion was finely balanced.
Further monetary stimulus could
be added if the outlook warranted it,
the minutes concluded.
Over the past month the economy
has been expanding, according to the
Banks agents, but only very slowly.
Consumer demand is rising, private
sector investment intentions point to
a small rise in capital spending over
the coming year, and goods export
growth remains strong, particularly
to emerging markets, the report said.
However, construction output con-
tracted again, private sector employ-
ment levels are set to remain flat and
some businesses have revised down
their growth forecasts for the year.
Despite this weakness and risks
Senior Bank official hits out at
pension funds gilt complaints
More QE on the
way if growth
declines further
G
E
T
T
Y
Clothes shops were particularly hit as shoppers cut back on summer purchases
Retail sales growth ground to a halt in April
Apr 12 Jun11 Jun10 Jun09
4
5
2
1
0
3
6
7
8
9
%
c
h
a
n
g
e
o
n
y
e
a
r
THURSDAY 24 MAY 2012
19
NEWS
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(with VAT back)
JAPANS current account deficit
widened again in April, official data
showed yesterday, as rising oil and
gas imports outstripped increased
exports.
Exports rose 7.9 per cent in April
from a year earlier, the biggest gain
in more than a year, Ministry of
Finance data showed, helped by a
recovery in overseas demand.
Exports to Asia, which account for
more than half of Japans total
exports, fell 2.6 per cent from a year
earlier. Meanwhile imports rose
eight per cent, driven by rising oil
and gas purchases after the closure
of nuclear power facilities.
Japanese oil
imports jump
BY CITY A.M. REPORTER
THE BANK of Japan maintained its
ultra-loose monetary policy
yesterday, yet did not signal a move
towards even greater stimulus.
After its policy meeting it
decided to keep interest rates
between zero and 0.1 per cent,
with the size of its asset-buying
programme also unchanged.
There remains a high degree of
uncertainty about the European
debt crisis, the recovery of the US
economy and the likelihood of
emerging economies achieving
price stability and growth, the
Bank warned.
Bank of Japan resists more QE
but says it still supports easing
BY ANAAM RAZA
The central bank is worried that
the problems of Greece and
Europe could affect Japans
economy by hurting its exports to
the region.
The Bank of Japan has not
leaned towards neutral stance at
all; if theres any doubt about our
stance on strong monetary easing,
Id like to stress it has not changed
at all, said Bank of Japan governor
Masaaki Shirakawain, to show that
it is ready to act if need be.
The Bank is expected to resort to
more easing through boosting its
asset-buying programme in July
when it issues its revised quarterly
economic and price forecasts.
WEAK domestic and Eurozone
demand is dragging down output
expectations in the UKs
manufacturing sector, industry
data showed yesterday, hitting
hopes that the economy will
bounce back in the next quarter.
Nineteen per cent of
manufacturers saw order books
above normal in May, the
Confederation of British Industrys
(CBI) industrial trends survey
showed, while 36 per cent were
below normal, leaving a net
balance of minus 17.
Meanwhile a net balance of
three per cent expect output to fall
Manufacturers hit by weak UK
and European demand growth
BY TIM WALLACE
over the next three months,
sharply down from the balance of
24 per cent who forecast rising
output just a month ago.
BNP Paribas UK economist David
Tinsley warned the survey data
points to a fall in the
manufacturing component of GDP
in the second quarter, hitting
overall growth.
The official manufacturing
output release has been weaker
than the surveys, so the sector will
do pretty well to manage a flat
level of output in the second
quarter, he said.
When the extra public holiday
is included, a fall in production is
more likely than not.
RETAIL sales dropped sharply in
April, and recorded almost no
growth on the year as bad weather
kept shoppers off the high street,
official data showed yesterday.
By value, sales dropped 2.8 per cent
on the month to 25.9bn after a rela-
tively healthy March, the Office for
National Statistics (ONS) estimated,
while sales were up just 0.4 per cent
compared with April 2011.
By volume, sales were down 2.3 per
cent on the month and 1.1 per cent
on the year.
Part of the monthly drop was
caused by panic buying of petrol at
the end of March skewing the fig-
ures, boosting that months data and
hitting Aprils.
However, even when fuel sales are
BY TIM WALLACE
excluded, volumes dropped 0.3 per
cent on the year and one per cent on
the month.
Food stores saw sales fall 3.5 per
cent on the year, while clothes shops
recorded a 7.5 per cent fall.
Weekly internet sales were up 18.1
per cent to 489m, and account for
an estimated 8.5 per cent of all retail
sales excluding motor fuel.
April showers
dampen retail
sector recovery
THURSDAY 24 MAY 2012
20
Freshfields
Freshfields Bruckhaus Deringer,
the law firm, has appointed Silvia
Paternain as head of its global
tax practice. She succeeds Colin
Hargreaves, who is returning to
focus on client work full time.
Paternain joined the firm in 1998
and was elected to the
partnership in 2004. She
specialises in corporate cross-
border transactions.
Sirius Metals
The Aim-listed potash mining company has appointed
Jason Murray to its board as finance director and chief
financial officer. He joins Sirius from Bank of America Merrill
Lynch, where he has been head of capital markets in
Australia for the last five years. Murray has previously held
senior roles at Citigroup and JP Morgan. He will split his
time between Siriuss Sydney and London offices.
Torus
Tim Harris has joined the specialty insurer as group chief
financial officer. He will report to group chief executive Clive
Tobin. Harris joins Torus from Aviva, where he was deputy
group chief financial officer and chief capital officer. He
previously served as chief financial officer, Aviva Europe,
and chief accounting officer.
Henley Investments
The private equity property company has appointed Jeff
Morton as chief investment officer. Morton was previously a
managing director and head of investments for BlackRocks
UK real estate fund. His role at Henley will focus on growing
its commercial fund management business.
State Bank of India
Mrutyunjay Mahapatra has been appointed regional head
for the UK at the Indian bank. He will serve as country
manager and oversee all SBIs UK activities. He has over 30
years experience in financial services, and most recently
served in SBIs Chicago office.
Numis
The investment banking and institutional stockbroking firm
has hired Matthew Taylor into its retail research team. He
will serve as director, equity research on retail. Taylor
previously spent 15 years at UBS, where he was managing
director covering the retail sector. He has also held positions
at Merrill Lynch and BZW.
New Amsterdam Capital
Roger Clement has been appointed as a partner at the
specialist investment firm, where he will co-head its
corporate finance division alongside partner Richard Lee.
Clement has over 20 years experience advising on mergers
and acquisitions and private equity transactions. He joined
the company Moore Stephens.
Cluttons
The property consultancy has appointed Alexandra
Matthew to the position of sales manager at its Holland
Park office. Matthew joins from Strutt and Parker, where
she was most recently an associate.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
U
S stocks staged a late-day
reversal yesterday, rallying
into the close in another
volatile session as a sharp rise
in materials shares boosted the S&P
500 and gains in Apple helped lift
the Nasdaq.
The action shortly before the mar-
ket's close was a mirror image of
Tuesday when stocks gave up gains
in the last minutes of trading. The
late rebound suggested investors
saw value in the market after the
S&P 500 fell just below 1,300 but
also underscored the skittishness of
the trading environment.
In the overall market, the Dow
Jones industrial average dipped 6.66
points, or 0.05 per cent, to 12,496.15.
The S&P 500 Index edged up 2.23
points, or 0.17 per cent, to 1,318.86.
The Nasdaq Composite gained 11.04
points, or 0.39 per cent, to 2,850.12.
BP
Canaccord Genuity has raised its rating on the oil giant from hold to buy
and has a target price of 485p. While the broker is not yet confident BP can
recover from its 2010 spill in the long run, it sees a strong bounce coming in
2013-14 once various US court cases are resolved.
DASHBOARD CITY
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B
RITAINS top shares fell
sharply yesterday, wiping out
their gains from the start of
the week on mounting fears
Greece will leave the Eurozone.
The FTSE 100 slid 2.5 per cent to
5,266.41, its biggest one-day percent-
age drop since 21 November and its
lowest close since 25 November,
when markets were similarly beset
with worries about the Eurozones
debt crisis.
The underlying circumstances
today are no different than they
were two days ago, two weeks ago,
two months ago, but the longer it
drags out, the more debilitating the
situation is, said Richard Jeffrey,
chief investment officer at Cazenove
Capital Management.
What worries the markets most is
that there isnt any clearly defined
way forward to this - there's no map
that were working to.
Miners, among the previous ses-
sion's strongest gainers, were the
biggest drags on the FTSE 100 as
copper sank to a four and a half
month low, with investors wary that
a failure to tackle the euro crisis
will hit global demand for industri-
al metals.
Vedanta was the biggest loser,
falling 9.1 per cent, closely followed
by Kazakhmys with a 7.9 per cent
fall and Polymetal, which tanked
5.4 per cent.
Man Group also slid 5.8 per cent,
after ratings agency Moodys reiter-
ated its downgrade warning.
BSkyB was one of only three blue-
chip gainers. It rose 0.4 per cent, as
the UK Competition Commission
said the arrival of Lovefilm and
Netflix in Britain has weakened the
grip of the satellite broadcaster in
the pay-TV movie market, making it
less likely that the regulator will
intervene in the sector.
Burberry Group trimmed initial
steep losses to end down 1.2 per
cent, after the luxury brand posted
a 26 per cent jump in profit.
LONDONREPORT
Eurozone fear
hammers FTSE
NEW YORKREPORT
Stocks boosted
in late day rally
SAVILLS
UBS upgrades the property group from neutral to buy but has trimmed
its 12-month price target from 385p to 370p. The firm is vulnerable to
changes in sentiment in the UK, the broker notes, but in fact makes more
than half of its profits in Asia Pacific.
RECKITT BENCKISER
Morgan Stanley rates the consumer goods producer overweight and has a
target price of 38. The broker sees an attractive entry point following
investor JABs recent placing, with solid earnings growth expected in the
firms half-year results in July.
BESTof theBROKERS
Savills PLC
p
350
340
330
320
310
300
17May 18May 21May 22May 23May
300.80
23 May
Reckitt Benckiser Group PLC
p
3,460
3,440
3,420
3,400
3,380
17May 18May 21May 22May 23May
3,391.00
23 May
BP PLC
p
420
410
400
390
380
370
17May 18May 21May 22May 23May
393.90
23 May
I
N A Magnificent Catastrophe,
Edward J. Larson documents
Americas first truly competitive
presidential election campaign, a
most brutal affair in 1800
between President John Adams and
Vice President Thomas Jefferson. It
had it all, the vicious anonymous
attacks, accusations of unpatriotic
behaviour, and smears about
religious faith. How things have
changed.
Two years ago, the Supreme Court
ruled that the First Amendment also
covered the rights of corporations and
interest groups to expend financial
resources to influence the outcome of
elections, thus thwarting attempts by
the federal government to regulate
independent campaign expenditures.
D
EBATE has raged for days over
Adrian Beecrofts proposed
employment law reforms,
exposing some fundamental
problems in our politics.
Having been asked to apply his
expertise and intelligence to a serious
issue, and having volunteered his
time, the savaging he has received
from some quarters shows why many
of our finest minds outside politics are
reluctant to get involved in public
policy, causing Britain to miss out on
new ideas that it sorely needs.
But even more serious is the expo-
sure by the Beecroft debate of
Westminster and Whitehalls instinc-
tive tendency to tinker, rather than to
take serious action.
The full details of what has been dis-
cussed behind the scenes are not fully
clear, but we know that elements of
the civil service and of the government
itself are pressing for a compromise
position on employment regulation.
They would like Beecrofts proposals to
be watered down, despite the strong
support of business for his policies to
be implemented in full.
cityam.com/forum
Few are the mighty
economies of whom it
is said, the great thing
is they think small.
In association with
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

22
THURSDAY 24 MAY 2012
SIMON WALKER
Tinkering with Britains economy
wont drive the growth we need
The same tendency towards tinker-
ing can be seen in the reaction of some
to the proposals of the 2020 Tax
Commission, which was jointly run by
the Institute of Directors (IoD) and the
TaxPayers Alliance and chaired by
the editor of this newspaper.
The Commissions findings were
two-fold: that the tax system should be
drastically simplified, and that the
level of tax as a proportion of GDP
should be reduced to 33 per cent.
These are radical ideas, but also practi-
cal the entire project was focused on
identifying not only what should be
done but things that can be done.
The report has been received as a
serious proposition at 400 pages
based on 18 months of detailed
research, it should be. But all too often
the first question on the lips of some
in the corridors of power is not Is this
the right thing to do? but Isnt this a
rather ambitious idea? And they
mean that in a bad way.
But history is not littered with exam-
ples of those who succeeded by prizing
small ideas. There are very few mighty
economies of whom people say The
great thing about them is, they think
small.
On Tuesday, I was in Nottingham,
meeting IoD members. Drawn from
every imaginable sector, their con-
cerns were as varied as youd expect.
Some were worried green taxes were
driving their energy bills to business-
killing levels. Some feared taking on
new staff due to the 10,000-a-time
cost of employment tribunals. Others
felt the tax burden was deterring cus-
tomers, investors and their own expan-
sion. All of them wanted drastic action
not a single one said they wanted the
government to moderate its plans, and
that a watering down of policy was
what the nation really needs.
And yet it is precisely that overly
moderated, excessively diluted and
insufficiently radical policy which
our political system seems to prize.
Radical ideas are looked at as oppor-
tunities to cherry-pick some elements
to produce changes that are visible but
not too exciting or eye-catching.
Consensus is talked about as an unal-
loyed virtue, when all too often, as
Abba Eban once said, consensus is
when everyone agrees to say collective-
ly what no one believes individually.
We face challenging economic cir-
cumstances, in which sitting on the
fence is simply not good enough.
Particularly when the economy has
flat-lined for the last 18 months and
confidence is damagingly low, it
should be clear that to break the pat-
tern we need strong policy-making
which provides a clear signal that
things are going to change.
Not frightening the horses is an oft-
cited principle, but the alternative
which has been pursued so far is one
of boring the horses to death. And it
isnt working.
To get the economy growing again,
customers on the high street, foreign
investors and UK companies with cash
in the bank need to be shown that the
government means business. That can-
not be achieved by tinkering, nor do
we have the time to wait for pennies to
add up into pounds through incre-
mental small steps.
We need drastic action on employ-
ment regulation, on taxation, on fiscal
policy, on infrastructure and on ener-
gy. It is time for British policy-making
to rediscover its ambition, and unlock
the power of radical ideas.
Simon Walker is director general of the
Institute of Directors.
Read more on the 2020 Tax Commission
report at www.2020tax.org
The ruling is largely credited with giv-
ing birth to the Super Political Action
Committee (PAC), thats officially
independent of a candidate, but often
neck deep in financial resources, ideo-
logical fervour and political know-
how. And unlike offerings to political
candidates, donations are not dis-
closed or, most importantly, capped.
Given the ease with which a Super
PAC can be created and issue devastat-
ing political advertisements, they are
regarded by some as corrupting. At
first, President Barack Obama
shunned them, only to buckle as their
electoral muscle became clear.
Current projections indicate that half
of the $10bn expected to be spent on
2012 races will come from Super
PACs. And although President Obama
has pledged to raise $1bn in cam-
paign funds, Republican-backed
Super PACs are outraising their
Democratic counterparts by almost
four-to-one.
But these great financial equalisers
have their political drawbacks. Last
week, a memo was leaked from a
Republican strategist courting donors
to bankroll advertisements regarding
Obamas erstwhile mentor, Reverend
Jeremiah Wright. Despite no evidence
of Romneys complicity, the
Republican candidate was forced to
issue a statement and was quickly
enveloped by the news cycle, allowing
the Obama campaign to accuse him
of only tepidly distancing himself.
Obama strategist David Axelrod
claimed that this negativity was typi-
cal of Republicans, whereas the
Presidents campaign regarded
Romneys Mormon faith as not fair
game. However, when Obama Super
PAC donor Bill Maher labelled the
Republican candidates religion a
cult, the Obama campaign didnt
comment. Newark Mayor Corey
Booker, a rising star in Democratic
politics, called for greater civility,
describing the attacks by Obama and
Super PACs on Romneys business
career at Bain Capital nauseating.
Bookers appeal to change the elec-
tions rhetoric to the issues that the
American public cares about, didnt
escape Axelrods wrath.
As the ugly sister of the official cam-
paign, Super PACs bear some responsi-
bility for further contaminating the
public discourse. However, the key
problem is that the regulatory regime
incentivises campaigns to hide
behind mysterious groups that
launch smears. Its the rules, not the
negativity thats the problem. After
all, negativity in presidential cam-
paigns is almost as old as the republic.
Ewan Watt is a Washington DC-based
consultant. You can follow him on
@ewancwatt
THE WHITE
HOUSE RACE
EWAN WATT
While the candidates play at Prince Charming their ugly sisters fling mud
23
Tax by extortion
[Re: Dont ignore the moral arguments
against high taxation, yesterday]
This is a drum worth banging, and banging
again. The moral arguments against
taxation apply not only to taxes that the
government describe as such, but also to
official extortion at the local level
tyrannically enforced and excessively high
charges, fines for parking, and similar easy
targets. In short, taxation by stealth. In
addition to Eamonn Butlers examples, the
way government uses advertising is wrong.
Paid for through our taxes, government at
all levels attempts to create a climate of
opinion in which it is morally acceptable to
take private citizens money away. For our
own good.
Stephen Anson
Costs of hardship
[Re: This Tax Commission has a practical way
to fix the UK system, Monday]
I welcome any report that attempts to fix the
tax code. But its purpose should not just be
to reduce tax, but to build a just and inclusive
society. Matthew Sinclairs aim is to cut
spending, and the overall burden of tax, so
that people have more money in their pock-
ets. Which people, whose pockets, whose
burden? The Treasury doesnt calculate the
savings to the taxpayer from substantially
reducing poverty. And this government has
lost sight of what hardship means. It has
placed disproportionate burdens on the
backs of the poorest, while easing the life of
the already wealthy.
RevPaul Nicolson
Taxpayers against Poverty
O
NE by one, companies with
either sub-par performance
or poor compensation plans
have been brought to
account by shareholders.
The most spectacular of these was
at Aviva where Andrew Moss,
recently stood down, but there
have been major revolts at William
Hill, Pendragon and Trinity Mirror.
All of this has been achieved
without one bit of legislation, as
Vince Cables reforms of executive
pay are still under consultation.
The proposed reforms seem to have
got a lot more people, us included,
looking at what has been going
wrong and what can be done about
it, and such nudging, rather than
excess regulating, remains the best
way forward. For example, the
government is proposing to make
shareholders votes on pay binding.
Doing this with a 50 per cent
threshold is unlikely to catch many
companies. Even with the
shareholder spring, most revolts
have fallen well short of this.
Our new report, Rewarding
Success not Failure, to be published
next week, advocates a two strikes
alternative to a binding vote, with a
higher threshold for approval of 65
per cent. If the company lost the
first, advisory, vote it would have a
year to implement change. If it did
not and lost the following years
vote, it would automatically
become binding. This would allow
shareholders to express their
displeasure but still allow
companies time to change things.
Raising the threshold is likely to
nudge companies to listen to
shareholders more, while
shareholders can feel free to fire
warning shots at companies if they
need to.
Such votes will not stop the
biggest problem rewards for
TOP TWEETS
Hollande can yell all he likes about
Eurobonds, but with Germany paying so little
for their bonds, good luck to him.
@Makro_Trader
Cameron was asked four times whether he
supports Beecrofts proposal to fire employ-
ees at will. He refuses to answer.
@lucianaberger
Im glad Clegg is encouraging Osborne to
stimulate growth. But not by government
spending, please. Tax breaks are better.
@juliansims
Understatement of the day by Enda Kenny.
Greece is a matter of considerable concern.
@michaelhewson
After the FTSE 100 fell to 5,266 yesterday,
where will it close at the end of the year?
LOWER
The UK has entered into a double-dip recession. However, the FTSE
100 isnt just a reflection of the UK market, its a proxy for the entire
global economy, as a large proportion of its revenue streams come
from overseas. The bullish recovery from the lows of last summer
has been curtailed quickly by a weakening global economic picture.
In the Eurozone, Greece continues to dominate the headlines with a
resolution no nearer, Spain is in turmoil, with unemployment
incredibly high, and Italy has major fiscal and political issues.
Outside of Europe, the Brics have suffered, with China slowing and
the real, rupee and ruble all falling significantly. Japan is still a mess,
with its debt to GDP ratio at 239 per cent. The only possible saving
grace is the US. This all indicates that the FTSE will fall further, and I
predict it will be close to the 5,000 mark by the end of the year.
Glen Jones is deputy head at Growth Equities and Company
Research (GECR).
Glen Jones
HIGHER
Tom Elliott
The FTSE 100 closed today 11.7 per cent down from its year-to-
date high of 5,965, reached on 16 March. In what scenario could
we see these losses reversed? First, Europe. A commitment
towards more Europe from leading politicians would reassure
investors. Perhaps starting with a growth compact, but with
the end goal of creating full fiscal union via the issue of
Eurobonds. Such an announcement would be very positive for
risk assets. Second, the US. Recent data has been a little
inconsistent, fuelling fears over the sustainability of the recovery.
But such fears are overdone given the Feds willingness to
address any slippage with more quantitative easing, and
reasonably strong bank credit growth to the household sector.
Sentiment may switch quickly if we were to have a short run of
purely positive data.
Tom Elliott is global strategist for JP Morgan Asset Management.
RAPIDresponses
No more rewards
for failure how
to claw back pay
failure. The biggest irritation for
Joe Public is when a chief executive,
or indeed any executive, of a
company that has underperformed
or even failed, walks away with his
or her compensation intact. Avivas
Moss is likely to receive 1.75m in
severance pay. Cable has proposed a
cap of one years salary on exit
payments, but this would only be
enforceable for a firing. In most
cases, the need for speed and an
amicable parting means that a deal
is done and the executive resigns.
Our report proposes clawback
elements in the remuneration
package. Today, remuneration pays
out if certain targets are hit but
there are no equivalent downside
targets. Clawbacks should be
triggered when a company has
clearly underperformed, much like
when covenants are breached in
the case of a bond or loan. A large
proportion of executive
compensation could be deferred
into a form of escrow account so
that repayment would be easy to
facilitate. With such a strategy in
place Moss would likely have been
walking away with considerably
less or indeed nothing at all.
A true clawback regime would
eliminate rewards for failure and
arguably trigger a shift in executive
behaviour. If executives believe
their past pay is at risk then
perhaps they will weigh the risks of
a failed strategy more carefully.
James Barty is senior financial adviser
at Policy Exchange.
THURSDAY 24 MAY 2012
JAMES BARTY
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G
E
T
T
Y
T
HE financial regulator, the
Financial Services Authority
(FSA), is shaking up the way
financial advice is being
provided in the UK. New rules the
Retail Distribution Review, or RDR
for short come into force on 1
January 2013.
The new rules incorporate three
new requirements. In my view, all
three are fundamentally positive for
consumers.
Firstly, the minimum education bar
for financial advisers is being raised.
Customers seeking advice will deal
with better-educated advisers, which
can only be a positive outcome.
Secondly, advisers will have to
declare very clearly whether they
offer independent (i.e. whole-of-
market) advice, or restricted advice
(anything that isnt whole-of-market).
While a similar distinction has been
made in the past, the new rules go
further in terms of clarity. Again, this
can only be a good thing.
Thirdly, provider commission pay-
ments are being banned for invest-
ments. Instead of being paid by
providers (e.g. insurance companies)
for selling their products, advisers
will have to agree their remunera-
tion directly with their clients. This is
perhaps the most important change
and definitely the most misunder-
stood.
These changes dont come a
moment too soon. Financial advice in
the UK has something of an image
problem. Lots of people I speak to
have had poor or mediocre experi-
ences with financial advisers in the
past. The poor calibre of advisers has
been part of the complaint, but the
biggest criticism is reserved for the
commission regime that is being
replaced.
Under the new rules, the FSA is
recognising these issues and is mak-
ing bold steps to improve the percep-
tion of financial advice.
By banning commission payments,
the FSA is attempting to remove a
potential bias in advice. In the past,
different providers and different
products have often paid different
levels of commission. This introduces
incentives that have been at the heart
of numerous mis-selling scandals.
Under the new rules, the FSA wants
to ensure an adviser will act as the
agent of the client, not the product
provider. And that is a very impor-
tant distinction when it comes to an
adviser-client relationship.
However, moving to fees doesnt
necessarily mean paying more for
advice. The new rules simply encour-
age greater transparency and less
bias in what consumers have already
been paying.
Furthermore, a fee for advice can
take a number of forms: it could be a
flat fee, an hourly fee, a fee based on a
percentage of assets or a combination
of the above. Advisers are taking dif-
ferent approaches, so it makes sense
to shop around.
Fees also dont necessarily have to be
paid upfront. In most cases, it is rela-
tively easy to have an adviser fee paid
from the investment itself. In fact, in
some circumstances it is positively
tax-efficient to do so (e.g. fees for
advice on a pension transfer should
come out of the pension pot, rather
than a clients after-tax savings).
Yet the new rules havent been with-
out their detractors.
The new rules are undoubtedly chal-
lenging for advisers. Firstly, advisers
are being asked to pass several exams
which I can confirm are not easy. A
lot of experienced advisers are ques-
tioning whether the exams are worth
the cost and effort and are consider-
ing early retirement.
Secondly, advisers are having to
revamp their service proposition so
that they can charge an appropriate
fee for the work and value they deliv-
er.
Yet charging a fee has been compli-
cated by the fact that in the past
advice has often been misconstrued
as free (and advisers have some-
times compounded this by trying to
present their advice as effectively
free).
Financial advice has never been free,
since a commission paid by a provider
and a fee paid by a client one way or
another both come from the clients
same pocket.
If a lot of advisers do leave the indus-
try as predicted, financial advice may
become harder to find and more
expensive. However, there is a lot of
ongoing disagreement about whether
advisers are indeed leaving and
whether the cost of advice is rising,
falling or broadly staying the same.
Notwithstanding the challenges,
consumers will benefit significantly
under the new rules, and by exten-
sion advisers stand to benefit from far
greater client trust and loyalty in the
long run.
Ben Smaje is managing director of
Kennedy Black Wealth Management.
INVESTMENT
COMMENT
BEN SMAJE
THURSDAY 24 MAY 2012
24
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cityam.com
Eagle-eyed firms are
set to fly high in 2013
THURSDAY 24 MAY 2012
R
EGULATION is as dull for consumers as it
is frustrating for businesses. This is why the
average man or woman on the street hasnt
heard of the retail distribution review (RDR),
which revolutionises the regulation of financial advisers.
However, it does matter. For better or worse, it will change
the way that financial advice is delivered, most notably by
ending commissions from 1 January 2013.
With the RDR deadline drawing ever-closer, one might
expect the industry to be well-prepared for the changes that 2013
will bring. However, Remus Consulting and Distribution
Technology think those who are fully prepared are a rare breed.
As such, they have developed the RDR Zoo: A light-hearted way
to classify organisations according to their approach to RDR.
If your money manager is an albatross or ostrich, remaining
unprepared for RDR, they could be forced to sell or go bust
leaving you with the headache of finding a new company to
look after your wealth.
THE ALBATROSS
CHARACTERISTICS
nA large and endangered species.
nHistorically reliant on independent financial advisers
for distribution.
nUncertain what customers want and how to reach them.
EXAMPLES
nLife companies who have used commission to control sales.
nFund managers who have used commission to control sales.
HOW THEY CAN IMPROVE
nEnsure basics are in place around systems for adviser charging.
nDevelop scenarios for the impact of future changes to market and
consumer changes.
CHARACTERISTICS
nHas tunnel vision.
nLikely to be bogged
down in the
detail.
EXAMPLES
nSome adviser firms typically
sceptical of RDR.
nSome platforms unsure of their
role and future market demands.
HOW THEY CAN
IMPROVE
nFocus on the fundamentals of
the proposition, channels and
customers.
nDevelop an operating model with enough
flexibility to adapt to regulatory
requirements.
THE MOLE
CHARACTERISTICS
nA rare breed with
tremendous acuity of vision.
nIt is likely to be ready for RDR
or well on the way.
EXAMPLES
nNew model adviser firms, already well qualified
and predominantly fee-based.
HOW THEY CAN IMPROVE
nThese firms are well placed, but can still
maximise their opportunity by segmenting clients,
defining value-added propositions and minimising risk.
CHARACTERISTICS
nHas lots of arms.
nRunning multiple models and simple and
multiple business units so not clear who is
deciding the way forward.
EXAMPLES
nBanks, especially the larger groups
spanning retail, wealth management
and private banking.
HOW THEY CAN IMPROVE
nSelect a high-priority and/or relatively
simple area and pilot a solution.
CHARACTERISTICS
nVery busy.
nThey know what they need to do, but there are so many necessary
changes that they are in danger of being distracted.
EXAMPLES
nLarge companies already implementing regulation (e.g.
Solvency II).
nSmaller firms inexperienced in dealing with major change.
HOW THEY CAN IMPROVE
nRecognise the need for additional help.
nAllocate time, resources and budget for changes.
CHARACTERISTICS
nIs clear on its
destination.
nBut has lots of obstacles to
leap over along the way.
EXAMPLES
nSome adviser firms, which are
pro-RDR, but historically commission-
based.
nSome banks.
nSome brandassurers.
HOW THEY CAN IMPROVE
nClarify the operational and financial model
challenges.
nDevelop a clear roadmap to implementation.
THE SALMON
THE EAGLE
It pays for your money manager to be ready for the new rules, says Philip Salter
THE OSTRICH THE BEE
CHARACTERISTICS
nHas its head in the sand.
nHoping that RDR will be delayed.
EXAMPLES
nTypically smaller adviser firms who have been
opposed to RDR from the start.
HOW THEY CAN IMPROVE
nThese firms are at risk of leaving it too late.
nThey should consider options for sale or exit.
nOr they will need to make plans to transform into a
salmon (quickly).
THE OCTOPUS
Source: Remus Consulting and Distribution Technology
G
E
T
T
Y
LLOYD WAHED
Traders and analysts increasingly want immediate access to data from all devices
26
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SENIOR QUANTITATIVE STRATEGIST
NEW YORK
$200k-$250k pa, plus bonus & benefits
A rapidly growing hedge fund is looking to build
its infrastructure and technology team.
Candidates must have excellent C/C++develop-
ment skills and PhDs are preferable.
http://www.cityamcareers.com/job/9754
TEST ANALYST
LONDON
60k-90k pa, plus bonus & benefits
A prestigious Tier 1 bank is seeking an agile test
analyst. Candidates must have a minimum of
one to two years experience as a test practitioner
in a high transactional environment.
http://www.cityamcareers.com/job/11882
C++ SOFTWARE DEVELOPER
LONDON AND STOCKHOLM
110k pa
A leading financial institution and specialist
technology firm requires a PhD level C++ soft-
ware developer to join its London and
Stockholm offices.
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GRADUATE JAVA DEVELOPER
LONDON
23k-25k pa
A financial software house based in the City
requires a graduate Java developer for its risk
management division. Candidates must have an
entrepreneurial attitudeanda2:1 degree.
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SENIOR UNIX SYSTEMS ADMINISTRATOR
HONG KONG
40k-73k pa, plus bonus & benefits
Aglobal leader incorporateandinvestment
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have at least five years Unix experience.
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JOBSoftheWEEK
T
HE GLOBAL financial services
market has seen continued
instability, particularly across the
Eurozone, creating an extremely
challenging operating environment. This
has had an understandable knock-on
effect on the hiring market. IT hiring on
the whole, however, has held up, largely
because of new emerging technologies
within banks.
The current omnipresence of
technology in finance, from its origins as
a niche, is quite extraordinary. Cloud
computing, big data and payment
transactions are all trends that are
making technical hires in the banking
industry essential. Traders and analysts in
banks like Credit Suisse, JP Morgan and
Deutsche Bank now rely on gadgets for an
ever-increasing array of tasks. They want
immediate access to data across all
devices, from PC to tablet to phone.
As a result, data mining, applications
development, and mobile applications
development are key skills currently in
demand. At Morgan McKinley, we have
seen a 137 per cent increase in
Banks are prioritising tech
talent to drive innovation
A Morgan McKinley expert analyses why, where, and how finance is hiring IT experts
permanent IT vacancies in banks in the
year from the first quarter of 2011.
TRENDS ACROSS THE MARKET
Many firms are making a direct play for
the sharpest minds at graduate level, and
competition for talent remains fierce at
this entry point to the industry. Entry-
level candidates with a background in
programmingskillsare in huge demand.
But banks facestiff competitionfrom
cool-tech entrepreneurial environments,
where stock options canbe very attractive
to those with the right skills.
A trend towards hiring in business
intelligence has also continued, as
company leaders strive to better collate,
5,000
jobs in total
More than
CITYAMCAREERS.com
THURSDAY 24 MAY 2012
1,000
jobs in IT
Over
900
jobs for
100k or more
More than
100
positions in
Asia
Over
TODAY ON
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Scan here to go to
CITYAMCAREERS.com
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@cityamcareers
analyse, understand and present data
affecting the strategic outlook and, in
many cases, survival of their businesses.
The first step for major financial
institutions in managing financial risk is
to bring transparency and clarity to their
exposure. Some of the biggest and most
complex organisations are turning to
companies like Metapraxis, the business
analysis firm, to provide rapid insight
into exposure across products,
geographies and business lines.
NEW ROUTES TO ENTER THE MARKET
There is a surging market in the hiring of
financial services technical business
analysts and project managers, where
eligibility for security clearance is an
extra string to any applicants bow.
As another entry route, the large
consultancies Capgemini, Logica, KPMG
and Accenture are winning huge
operational change, risk and
infrastructureprojects within banks.
They benefit from the ability to hire the
same technical skill set in large numbers,
due to their ability to service numerous
client portfolios.
The confirmation of the Single Euro
Payments Area (SEPA) end-date of
February 2014 also represents a
significant challenge to banks. As a
result, they will demand new processes
and the right technology to support the
new systems they will have to put in
place.
CHANGES IN THE WAY BANKS ARE HIRING
There has been a shift from banks
employing contract staff, towards
permanent employees. Once the spotlight
was cast on the sorts of rates that were
being paid to IT contractors, particularly
within the front office, this kind of hiring
fell out of favour. However, IT contractors
remainemployed in urgentprojects,
requiring niche technologies. Banks are
also looking to improve equality and
diversity within technology teams. Since
last year there has been a greater number
of female senior IT appointments, right
up to C-level.
Data produced by the Council of
Economic Advisors (CES) shows that IT is
one of the only industries to have
exceeded its 2007 employment level.
Considering the impact of recent
economic troubles on other areas within
financial services, this growth
demonstrates the strong continued
demand for technology professionals.
Lloyd Wahed is a manager at Morgan
McKinley Technology.
27
G
E
T
T
Y
An MBA versus
an MSc is not a
straight battle
Your experience is a
key determinant of
which degree will
help your business
career the most
O
NE OF the rising movements
in professional education is
the growth of business
masters courses (MSc),
whether in general management or
in a host of specialisms from real
estate investment to shipping. Over
the last few years, many schools
have expanded their range of
masters courses and have made a
real push to recruit more students
into them. Some, like the Said
Business School, are experimenting
with innovative ways of combining
the benefits of both. But is an MSc a
genuine alternative to an MBA?
Despite appearances to the contrary
(notably in some similarities of
curriculum), it is not.
MBAs and MScs each offer
distinctive benefits and, when
choosing your programme, its
important to weigh these benefits
against your expected career
direction and your previous
business experience. And if you fall
into an unclear, grey area between
the two, speak to schools and check
admissions criteria. Its in no ones
interest to see business students
crammed uncomfortably into the
wrong course.
EXPERIENCE MATTERS
Susan Roth, director of MSc
admissions at Cass Business School,
says the main distinction between
MScs and MBAs is that the former is
geared towards the pre-experience
market. An MSc is for those
without any work experience. In
contrast, Cass requires potential
MBA students to have spent at least
three years in previous, professional
employment. According to the
typical class profile at the school,
where the average years in work is
eight, and the average age 31, some
must be considerably more senior.
Why should experience matter?
Because it affects the way each
degree is taught. Professor Dorothy
Griffiths, acting principal and head
of programmes at Imperial College
Business School, says that MScs
involve a strong element of
teaching the basics. An MSc
teaches you something about the
world youre going into, she says.
An MBA, in contrast, requires you
to reflect and build on your
experience. If you dont want to be,
respectively, overstretched or
patronised by an MBA or an MSc,
its important to choose wisely.
CLASS COLLABORATION
This experience requirement also
impacts on how students can learn
from each other. Part of the value
in an MBA derives from
collaboration and interaction with
others on the course. One of the
arguments for business school
diversity is that a varied cohort,
whether the differences are of
nationality, of sector, of age or of
gender, can provide students with
multiple perspectives on how to
approach a business problem
innovatively.
Its therefore important to judge a
potential school, and its
programmes, against measures of
diversity, but also by whether that
diversity will be useful for your
particular career progression. Its all
very well joining an MSc
programme with 50 per cent of its
typical cohort from Asia. But, if that
cohort is disproportionately young
and inexperienced, you will be
missing out on the broader benefits
of diversity. As Roth says, its
important to be with people youll
learn from.
GENERAL AGAINST SPECIFIC
Aside from the MSc in management,
which Griffiths describes as a
generalist, postgraduate masters,
most MScs are specialised. Real
estate investment and shipping have
been mentioned, but schools also
offer courses in law and finance, in
major programme management, in
managerial psychology, and in
corporate reputation management.
These are seductive titles. For
someone with a strong ambition to
progress in one specific profession,
they may seem a perfect recipe. But,
specialised courses are not strictly
comparable to the typically broad-
based ethos of an MBA.
MBAs are useful precisely because
they are generalist. Even if someone
has experience working within an
industry, their two or three years
involvement will typically have been
in a specific area. An MBA is meant
to broaden your horizons, not
narrow them down to a specialism.
An MBA will provide you with the
full range of business skills to
succeed at a managerial level.
WHERE DO YOU FIT?
Roth explains that the rationale
behind the increasing variety of
programmes on offer at Cass, and
business schools like it, is the need
for a diversifying portfolio to
accommodate the changing,
disparate needs of business students
in a dynamic economy.
As such, whereas MScs are not a
simple alternative to an MBA, they
do have their place. The challenge is
to work out, and to be sure of,
where your needs and experience
levels fit between them.
Every type of business degree has its own
distinct opportunities, writes Tom Welsh
BUSINESSEDUCATION
THURSDAY 24 MAY 2012
W
HY SHOULD the location
of a business school be a
factor in choosing one
MBA programme over
another? Its not immediately
obvious. Many potential students
will select by the educational value
of a course, and how specific
features of that MBA programme
might impact on career
progression. Many others will go by
a schools position in MBA
rankings. The diversity of a student
cohort will be important to some.
Against these, the physical location
of a school may seem an indulgent
concern, an aesthetic choice rather
than of critical value. This
perception couldnt be more
misplaced.
Where a school is based impacts
on a great many other aspects of
an MBA. An exciting, vibrant city
campus, with excellent transport
links, can attract a greater diversity
of students, and particularly from
abroad. The educational value of
an MBA will be improved by its
power to convince outside
lecturers or experts to speak at its
events the more convenient the
location, the better. A students
ability to enter a particular sector
after graduation will be advanced
by nearby internship
opportunities.
Location, therefore, is both
relevant and important. And not
always in the most obvious of ways.
Potential MBA students should
unpick their preconceptions about
a business schools location and
Choosing your MBA:
Location is a critical
part of the decision
consider it carefully, in light of
their personal preferences and
priorities.
CONVENIENCE AND RELEVANCE
MBAs dont just involve lessons in
front of a whiteboard, in a generic
classroom that could be anywhere.
Students have valuable
opportunities to pursue practical
electives, or to enjoy direct contact
with outside business experts.
Imperial College Business School,
for example, offers an experiential
leadership programme, designed to
develop leadership skills through
live projects with the charitable
sector. Cass Business School hosts
special interest groups and
corporate events, where students
can network with and learn from
leading figures in business.
Steve Cousins, MBA admissions
manager at Cass, argues that his
school is better able to attract
lecturers and corporate attendees
Where your business school is based could affect what you learn,
the way its taught, and whether its enjoyable, writes Tom Welsh
THURSDAY 24 MAY 2012
28 BUSINESSEDUCATION
cityam.com
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because of its location in the City
of London. We do particularly well
in getting high-profile speakers
because were on the doorstep for
these people. Londons diverse
economy also gives students the
chance to seize on a wide variety of
expertise. We do have strong links
with the City, but its greater than
finance. People from Silicon
Roundabout, directors of human
resources, directors of
communications, they all come to
our events.
Location also has an impact on
the way Casss course is designed.
Our programme is influenced by
our location were very much
concerned with our content being
relevant. Cousins believes that
Casss position in the heart of
London means it is consistently on
top of educational and business-
relevant developments.
BROKEN PERCEPTIONS
It would be a wrong to dismiss all
schools outside the capital,
however. Many sectors have a
strong presence outside London
(armaments in Hampshire, life
sciences in Oxford and Cambridge),
and you would be wise to tailor
your choice to those local
strengths. Cousins admits that if
someone is thinking of a particular
sector that they know is
particularly strong in another city,
that probably is a better place for
them to go to.
But, its important to research
around preconceptions. Cousins
warns against taking on second-
hand views. Look at student
cohort profile, the student make-
up. And see where students tend
to go.
Elaine Ferneley, MBA director at
Manchester Business School agrees.
Although her school made a
philosophical decision that it
would follow a pragmatic, practical
approach to teaching, partly
influenced by Manchesters
industrial past, the breadth of its
course means that 20-30 per cent
go into financial roles, and a
similar number into consultancy.
The Manchester MBA may not be
known as a financial MBA, but
that doesnt prevent it being used
as one.
UNIVERSITY LINKS
Its also important to consider the
relevance of the broader university
to an attached business schools
MBA. Often these links are tight
and collaboration can be
beneficial. Said Business School,
for example, part of the University
of Oxford, requires students to be a
member of an Oxford college.
Being an integral, embedded
member of the university gives
students the benefit of cross-
disciplinary contact, and can act as
a vital incubator for new and
innovative approaches to business
problems.
Additionally, Said has recently
launched the Oxford 1+1 MBA, a
two year course which allows MBA
students to undertake an additional
MSc within the wider university.
Drawing on Oxfords broader
expertise in the environmental
sciences, for example, students can
improve their employability in
relevant sectors.
Imperial College Business School
has a similar approach. Professor
Dorothy Griffiths, acting principal
and head of programmes, says its
programmes have evolved around
the science, technology and
medicine bias of the wider
university. Weve a deep
relationship to our institution. Its
marketing courses, for example,
follow a distinctively analytical
approach when compared to other
schools. Its at the hard end of
marketing, proper data analytics
stuff.
PERSONAL PREFERENCE
But dont underestimate the
importance of personal preferences
and requirements in your decision.
MBAs are tough, intensive
programmes and they wont be any
easier if you loathe the place you
live. Consider whether youd prefer
to study in a campus setting, or in
the middle of a large city. Will you
be content to relocate away from
friends or family, from established
connections and networks?
Cost could also be a factor.
London is expensive and there are
alternatives, perhaps outside
Britain, which could offer similar
benefits. Nick Barniville, director of
MBA programmes at ESMT Berlin,
for example, believes that his school
has a competitive advantage
because of cost. Berlin differs from
London in the fact that it is
affordable it is one of the
cheapest capital cities in Europe.
Since classes are taught in English,
and with discounted German
lessons at the Goethe Institute
thrown in, language need not be a
problem.
Ultimately, however, its
important that your decision over
location, school, or particular
course leaves sufficient room for
MBA students are likely to see a different side to their
G
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BUSINESSEDUCATION
29
THURSDAY 24 MAY 2012
cityam.com
Manchester Business School
Full-time MBA Programme
Original Thinking Applied
The highest recommendation of our MBA Programme is that scholarships
continue to be generously funded by our successful alumni. They joined us
for 18 months of rigorous and applied study, and not only did they enjoy an
outstanding and original learning experience, they also enjoyed an average
increase of 116% in their earning potential within 3 years of graduating.
If youd like to become part of this outstanding group, you can nd out
more about our MBA Programme at go.mbs.ac.uk/scholarships.
Apply by the 28th of June for September 2012 entry.
Think about a
continuous return
on investment
flexibility. MBAs are useful because
they offer breadth of teaching and
experience, they give students the
opportunity to progress further and
faster in a wider range of careers,
and they afford indispensable new
networks and contacts.
So while location should be one
of the most important elements in
your decision, put the salient
benefits of that location into
context. Will the reasons that
motivated your choice of a specific
school, in a particular place, still be
true when you graduate?
IMPERIAL COLLEGE BUSINESS SCHOOL
n Location: South Kensington
n Description: Innovation,
entrepreneurship, and design
n Fees: 36,000 (October 2012)
n Length of course: One year
nFinancial Times MBA rank: 46 (2012)
n Class size: 47 (2011)
n Percentage international students:
87 per cent (2011)
n Average student GMAT: 658 (2011)
n Average salary increase after
graduation: 72 per cent (2010)
n Graduates entering consulting: 27
per cent (2010)
n Graduates entering finance and
banking: 15 per cent (2010)
n Percentage employed within six
months: 96 per cent (2010)
n Percentage of graduates who made
a location change post-MBA: 51 per
cent (2010)
SAID BUSINESS SCHOOL
n Location: Oxford
n Description: The Oxford
experience
n Fees: 37,750 (2012/13), plus college
fees in the region of 3,200
n Length of course: One year
n Financial Times MBA rank: 20 (2012)
n Class size: 248 (2011-12)
n Percentage international students:
93 per cent (2011-12
n Average student GMAT: 698 (2011)
n Average post-MBA salary: 64,800
(2011)
n Graduates entering consulting: 35
per cent (2011)
n Graduates entering finance and
banking: 20 per cent (2011)
n Percentage employed within three
months: 90 per cent (2011)
n Percentage starting a new business:
15 per cent (2011)
HEC PARIS
n Location: 12 miles south west of
Paris
n Description: Rigorous and thought-
provoking
n Fees: 48,000
n Length of course: 16 months
n Financial Times MBA rank: 18 (2012)
n Percentage international students:
87 per cent (2011)
n Graduates entering finance and
banking: 25 per cent (2011)
n Graduates entering consulting: 19
per cent (2011)
n Percentage employed within three
months: 90 per cent (2011)
n Percentage of graduates working in
France: 44 per cent (2011)
n Percentage of graduates who
changed job: 69 per cent (2011)
location than the typical tourist or sight-seer
W
e live in a world saturated with images.
More photographs have been taken in the
last five years than in the rest of the
history of the medium put together.
Capturing the moment is as easy as whipping out
your smartphone its not surprising that mobiles
now account for more pictures than regular
cameras.
But if you want to guarantee stunning results,
you still need to invest in the hardware.
Thankfully, professional-grade equipment is
within reach of almost anyone, with price points
being driven ever lower and smart technology
helping to make complex DSLR cameras (digital
single lens reflex, the type used by professional
snappers) easy
THURSDAY 24 MAY 2012
cityam.com
30
LIFE&STYLE
WORDS BY
STEVE DINNEEN
NOW YOU HAVE THE CAMERA
HERES THE GEAR TO GO WITH IT
Vanguard Pro Kit | 300 | amazon.co.uk
This tripod and case is a great way of taking your pictures
to the next level. The tripod has vibration and shock con-
trol and can pack up to 10 kilos. The bag also comes with
plenty of space for all your gear.
Joby Gorillapod | 25 | amazon.co.uk
The Gorillapod is a great way of fixing your camera in
place without lugging a tonne of equipment with you. The
flexible legs will wrap around almost anything and it will
fit any standard camera.
Philips Power2Charge | 30 | m&s.com
Running out of juice on the go is about as bad as it gets
for a photographer. Give yourself a second lease of life
with this portable charger, which is compatible with
almost any lithium-ion battery.
Walimex studioset | 937 | walimex.biz
This professional-grade studioset will be more than your
average amateur snapper needs but if you are ready to
take your hobby to the next level, this set of three studio
flashes will cater for all your lighting needs.
TECHNOLOGY
Choose the perfect camera for you with
this guide to the best of the best
Happy snapping
Best for: professionals
Canon EOS 5D Mark III
2,999 (body only) at jessops.com
If youre a seasoned snapper, the Canon EOS 5D Mark III is one of
the most solid, all-round cameras on the market. It offers excep-
tional image quality and manually congurable settings to make
sure you can adapt to any conceivable situation.
Best for: those on a tight budget
Panasonic Lumix DMC-GX1
450 at ukdigitalcameras.co.uk
If you want the luxury of an interchangeable lens camera without
the complexity (or price tag) of a DSLR, the Lumix GX1 is ideal. The
12.1 megapixel camera takes great pictures for a product in this class
and will allow beginners to slowly try out more advanced features.
Best for: adventurers
Pentax K-7
580 (body only) at slrhut.co.uk
If youre the kind of photographer who likes to get stuck in, this
could be the one for you. The weather resistant body is compact
and light for a DSLR, making it easier to lug through difcult ter-
rain than some of its rivals. Its also as tough as a tank.
Best for: an alternative to DSLR
Olympus OM-D EM-5
999 (body only) at ukdigital.co.uk
This Olympus camera lays claim to the worlds fastest auto-focus
and the world's rst ve axis image stabilisation system, making
the argument that top photography doesnt necessarily require a
DSLR. Its also a reasonably priced option.
Best for: taking the next step up
Sony Alpha SLT-A77V
1,039 (body only) at amazon.co.uk
A great all-rounder thats as comfortable taking professional-
grade pictures as it is on the beach. While it lacks the punch of
the true heavyweights, at less than a third of the price, its a per-
fect camera for budding snappers ready to take a step up.
Best for: playboys
Leica S2-P Digital SLR
20,405 (with lens) at cliftoncameras.co.uk
Even pros would wince at the cost of this Leica DSLR. The S2-P,
though, is German engineering at its very best. It offers incredible
picture quality as well as the classic elegant design that Leica has
been renowned for since its early days as a microscope manufacturer.
Best for: beginners
Nikon D3200
514 (body only) at amazon.co.uk
The D3200 is an entry-level DSLR with an excellent in-camera
guide to teach would-be photographers the basics and make
sure you get the most from your new toy. It comes with specs
you would expect to nd on a more advanced model.
Reducing complexity has never been simpler.
Designed for growing business, the IBM System x3650 M3 Express server with the latest
Intel

Xeon

processor 5600 series can help you simplify your IT infrastructure. With
simple start-up, intuitive management and tool-less design, this server is easy to deploy
and managewhether your IT infrastructure is physical or virtual, onsite or remote.
Additionally, you get the valuable expertise of IBM Business Partners to create an IT
environment optimised to keep up with tomorrow, today.
Rated No.1 in Server Customer Satisfaction by TBR for the 9
th
consecutive quarter
1
.
1
TBR 3Q11 x86-Based Servers: Corporate IT Buying Behavior & Customer Satisfaction Study, November 2011.
2
Quarterly price quoted is based on IBMs 0% System x Solution Finance offering (FMV lease). Terms & Conditions Apply: Offering availability subject to credit approval; for more details and full Terms
and Conditions please visit: http://www.ibm.com/financing/uk/lifecycle/acquire/xsolutionfinancing.html Rates and offerings are subject to change, extension or withdrawal without notice. Prices
include VAT at a rate of 20%. IBM hardware products are manufactured from new parts or new and serviceable used parts. Regardless, our warranty terms apply. For a copy of applicable product
warranties, visit http://www.ibm.com/servers/support/machine_warranties. IBM makes no representation or warranty regarding third-party products or services. IBM, the IBM logo, System Storage
and System x are registered trademarks of International Business Machines Corporation registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or
other companies. For a current list of IBM trademarks, see www.ibm.com/legal/copytrade.shtml. Intel, the Intel logo, Xeon and Xeon Inside are trademarks of Intel Corporation in the U.S. and other
countries. All prices and savings estimates are subject to change without notice, may vary according to configuration, are based upon IBMs estimated retail selling prices as of 01/01/2012 and may
not include storage, hard drive, operating system or other features. Reseller prices and savings to end users may vary. Products are subject to availability. This document was developed for offerings
in the United Kingdom. IBM may not offer the products, features, or services discussed in this document in other countries. Contact your IBM representative or IBM Business Partner for the most
current pricing in your geographic area. 2012 IBM Corporation. All rights reserved.
Find a system that fits
your business.
IBM System x3650 M3 Express
1,623 incl. VAT
OR 45/MONTH OVER 36 MONTHS
2
PN: 7945KMG
IBM System x3550 M3 Express IBM System Storage DS3524 Express
3,704 incl. VAT
OR 103/MONTH OVER 36 MONTHS
2
PN: 1746A4S
External disk storage with 6GB/s Serial Attach SCSI (SAS) interface
technology
Scalable up to 48TB with 500GB NL-SAS 2.5" drives
Support for 96 drives with combination of EXP3512 or EXP3524 expansion
enclosures
Field upgradeable with FC or ISCSI host interface cards
Self encrypting drive options available for secure data at rest
DS3512 also available with 3.5" drive support
Intel Xeon 5620 processor (2.4GHz four-core), maximum of two
processors
Up to 192GB Registered Dual Inline Memory Modules (RDIMMs) or
48GB UDIMMs high-performance, new generation Double Data Rate 3
(DDR-3) memory
Internal storage flexibility with up to sixteen 2.5" hot-swap Serial
Attached SCSI (SAS)/Serial Advanced Technology Attachment (SATA)
HDDs or SSDs
Up to four PCIe slots
Intel Xeon 5606 processor (2.13GHz four-core), maximum of two
processors
Up to 192GB Registered DIMMs (RDIMMs) or 48GB UDIMMs
high-performance, new generation Double Data Rate 3 (DDR-3) memory
Internal storage flexibility with up to eight 2.5" hot-swap Serial Attached
SCSI (SAS)/Serial Advanced Technology Attachment (SATA) HDDs or
Solid State Drives (SSDs)
or x3650M3 Search
Visit: ibm.com/systems/uk/express1
Contact the IBM Team to
help you connect to the right
IBM Business Partner.
0800 028 6282
1,155 incl. VAT
OR 32/MONTH OVER 36 MONTHS
2
PN: 7944KAG
For the next month City A.M. and Brewin Dolphin will be shining a spotlight
on a series of City Treasures as we celebrate some of the great places and
institutions around us. Many of them are established with a long
and interesting heritage yet they still exude their core values
based on service and excellence.
Tomorrow is Masterpiece London.
www.brewin.co.uk
Dennis Hornsby of Truefitt & Hill in the iconic barbershop
L
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iscerning gentlemen still go
to Truefitt & Hill on St
Jamess for the ultimate
grooming session, from
haircut to shave, to facial to scalp
massage, because it still gives the
best mens treatments in town.
Opened in 1805 by William Francis
Truefitt, the business grew in an era
when the real head hair of
gentlemen was less aesthetically
important than their wigs. The hair
had to be chopped so that the wigs
would fit.
Having established himself as
Court Hair Cutter, Truefitt and his
colleague-brother Peter, soon became
Royal Wigmaker to King George III
(T&H is currently royal warrant hold-
er to The Duke of Edinburgh) and
flourished as the most fashionable
wigmaker and barber in town. In
1911, Edwin Hill & Co set up a barber
shop at 23 Old Bond Street, and in
1935, Truefitt joined forces with Hill
and moved the shop there, though
the present address is 71 St Jamess
Street.
So what does Truefitt offer and to
whom in a post-wig world? The list
of customers includes men of the
Royal family, as well as visiting digni-
taries, business tycoons and famous
actors, such as Leonardo DiCaprio. As
for whats on offer, the famous tradi-
tional shave with hot towels and a
manicure tick the basic pampering
boxes. But in a metrosexual age
(read: men who arent afraid to look
after their skin), theres a range of
services on offer that puts even the
most modern spas to shame. At
Truefitt, beards can be trimmed,
shoes shined (on the house), and the
face luxuriously pampered with a
cleanse, exfoliation, tone, mask and
neck massage, using house products.
Men can enjoy Truefitts expertise
at home: classic ranges include 1805
(based on the barbers first year);
Trafalgar; West Indian Limes;
Sandalwood and more all available
online. Shaving brushes, creams,
soap and aftershave are also for sale.
Crucially, Truefitts appeal extends
beyond the British gentleman to any-
one interested in British quality and
royal standards, and there are now
shops in Las Vegas, Chicago and
Toronto, too.
LONDONS OLDEST BARBERSHOP STILL CATERS TO THE BEST
How to blaze into
summer in style
A light blazer is the office workers friend, says Zoe Strimpel
THURSDAY 24 MAY 2012
cityam.com
32
LIFE&STYLE FASHION
TRUEFITT & HILL

New & Lingwood, single

breasted seersucker jacket,
161, houseoffraser.co.uk
This textured, single breasted piece has
a toned-down, comfortable look. It
would work perfectly with a pair of
chinos.
Brioni linen and silk, 1,620,
www.mrporter.com
An impeccably cut piece, this blazer,
which is made from l--l fabric,
adds heft and richness to a distinctly
summery jacket. A timeless piece that
will work for years.
Reiss Maddison one-button
blazer in pale mint, 195,
reissonline.com
Just the sight of this blazer is enough
to cool you down. A slim lapel, ap
pockets and slightly cropped sleeves
make it perfect for the ofce.
Sandro Vicky woven twill
blazer, 280, netaporter.com
Bring a burst of summer colour to the
ofce with this breathable, smart but
sassy blazer from Sandro. Works well
open or closed.
Oasis cropped
waiter jacket, 70,
www.oasis-
stores.com
Cropped and with a
trendy thick double
lapel, this super-slick
jacket is a good value
piece as it affords an
efortless transition
between day and night.
Women
Men
Reiss Irving B two-button
notch lapel jacket, 195,
reissonline.com
Cotton blend pale pink blazer with
contrast lining. Smack bang on trend
and works equally well with a suit for
work or a weekend look.
33
TV & GAMES
cityam.com
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BBC1
SKY SPORTS 1
6pmLive Champions Tour Golf:
The Senior PGA Championship.
8pmLive PGA Tour Golf 11pm
European Tour Golf 1amTime of
Our Lives 2amPremier League
World 2.30amRingside 3.30am
The Rugby Club 4.30amPremier
League World 5am-6amRingside
SKY SPORTS 2
4.30pmLive ECB 40 League
Cricket 10pmWWE: Late Night
Raw12amWWE: NXT 1amNRL
Fulltime 1.30am-2.30amSuper
Leagues Supermen
SKY SPORTS 3
7pmPremier League World
7.30pmIAAF Athletix 8pmThe
Rugby Club 9pmRingside 10pm
Time of Our Lives 11pmIAAF
Athletix 11.30pmPremier League
World 12amRingside 1amThe
Rugby Club 2amAmericas Cup
Uncovered 2.30am-3amIAAF
Athletix
BRITISH EUROSPORT
7pmCycling: Giro dItalia 8pm
Triathlon 9pmWorld Superbikes
10pmBritish Superbikes 11pm
Cycling: Giro dItalia
12am-12.15amThe Box
ESPN
6.45pmPress Pass 2012 7.15pm
ESPN Kicks: MLS 7.30pmMajor
League Soccer 11pmSerie A
11.30pmPress Pass 2012 12am
Serie A 1.00amNBA Action
1.30amNBA Tonight 2.00amLive
NBA Basketball 4.30amFIBA
Basketball
SKY LIVING
7pmCriminal Minds 8pmFour
Weddings US 9pmBattle of the
Brides 10pmThe Biggest Loser
USA 11pmUnforgettable 12am
Criminal Minds 1.50amBones
2.40amMedium3.30amBones
4.20amCriminal Minds
5.10am-6amSteps: On the Road
Again
BBC THREE
7pmApprentice 8pmEurovision
Song Contest 2012: Semi-Final
Two 10pmRussell Howards Good
News 10.30pmEastEnders 11pm
Family Guy 11.50pm American
Dad! 12.35amRussell Howards
Good News 1.05amAngry Boys
1.30amAre My Fake Breasts
Safe? 2.30amSnog, Marry, Avoid?
3amBritain Unzipped 4amThe 16
Year Old Killer: Cyntoias Story
4.55am-5.25amSnog, Marry,
Avoid?
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmThe Big Bang
Theory 8.30pmHow I Met Your
Mother 9pm2 Broke Girls 9.30pm
Dont Trust the B**** in
Apartment 23 10pmRules of
Engagement 10.30pmVery
Important People 11pmWorlds
Greatest Celebrity Body Shockers
12amCardinal Burns 12.35amThe
Big Bang Theory 1.35amScrubs
2amHow I Met Your Mother
2.25amRules of Engagement
2.45amAccidentally on Purpose
3.10amDesperate Housewives
3.55am90210 4.35amGreek
5.20am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmIce Road Truckers 9pm
American Restoration 9.30pm
Pawn Stars 10pmStorage Wars
11pmAmerican Pickers 12am
Storage Wars 12.30amPawn
Stars 1amStorage Wars 2amIce
Road Truckers 4amHeir Hunters
5am-6amAncient Discoveries
DISCOVERY
7pmBear Grylls: Born Survivor.
Part one of two. Surviving in the
Sahara. 8pmGold Rush. Dakota
Fred finds gold at Porcupine Creek.
9pmFreddie Flintoff Goes Wild
10pmAuction Hunters 11pm
Deadliest Catch 12amFreddie
Flintoff Goes Wild 1amAuction
Hunters 2amDeadliest Catch
3.50amWheeler Dealers 4.40am
Bear Grylls: Born Survivor
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmSay Yes to the Dress 8pmI
Didnt Know I Was Pregnant 9pm
Untold Stories of the ER 10pm
Super Obese 11pmTrauma Unit
12amUntold Stories of the ER
1amSuper Obese 2amTrauma
Unit 3amSay Yes to the Dress
4amA Baby Story 5am-6am
Birth Stories
SKY1
7pmThe Middle 7.30pmModern
Family 8pmHouse Special: Swan
Song 9pmGlee 10pmHouse 11pm
House Special: Swan Song 12am
Cop Squad 1amLuton Airport
2amBrit Cops: Zero Tolerance
2.55amCaribbean Cops 3.45am
99 Most Bizarre 4.35am-5.05am
Real Filth Fighters
BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News 6.30pmBBC
London News 7pmThe One Show:
7.30pmEastEnders: BBC News
8pmPlanet Earth Live:
9pmCHOICE National
Treasures Jubilee Special:
10pmBBC News
10.25pmRegional News
10.35pmQuestion Time:
11.35pmThis Week: 12.20am
Holiday Weatherview12.25am
Sign Zone: Eurovisions Dirty Secret
Panorama 12.55amSign Zone:
Countryfile 1.55amSign Zone:
Antiques Roadshow2.55amSign
Zone: Ivory Wars: Out of Africa
3.55amSign Zone: Great British
Menu 4.25am-6amBBC News
6pmEggheads: Quiz show,
hosted by Dermot Murnaghan.
6.30pmTOTP2: Including
performances by Frankie Goes
to Hollywood and Stevie
Wonder.
7.30pmGreat British Menu:
8pmChelsea Flower Show
2012:
9pmThe Fish Market: Inside
Billingsgate:
10pmGrandmas House:
10.30pmNewsnight: Weather
11.20pmGolf: The PGA
Championship:
12.20amBBC News
4am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale:
7.30pmPeople Power: Tonight:
8pmEmmerdale:
8.30pmCoronation Street:
9pmLong Lost Family:
10pmITV News at Ten
10.30pmLondon News
10.35pmSoccer Aid 2012:
11.05pmPiers Morgans Life
Stories: Lulu:
12.05amJackpot247; ITV
News Headlines
2.35amPeople Power: Tonight 3am
ITV Nightscreen 4.35am-5.30am
The Jeremy Kyle Show
6pmThe Simpsons: 6.30pm
Hollyoaks: 7pmChannel 4 News
7.55pmChannel 4 Presents: Oscar
Pistorius One Giant Leap:
8pmPhil Spencer: Secret
Agent:
9pmCHOICE The Hoarder
Next Door:
10pm24 Hours in A&E: 11.05pm
The Secret Millionaire: 12.05am
4thought.tv 12.10amRandom Acts
12.15amParalympic World Cup
Highlights 1.15amExtreme A&E
2.10amUnreported World 2.35am
Beating the Recession Cash vs
Cards: Channel 4 Dispatches
3.05amHidden Talent 4amDeal or
No Deal 4.55amGlamour Puds
5.25am-6.10amCountdown
6pmHome and Away:
6.30pm5 News at 6.30
7pmPolice Interceptors: A
drink-driver is involved in a
crash; 5 News Update
8pmClose Encounters of the
Third Kind: The True Story: 5
News at 9
9pmCHOICE Cowboy
Builders:
10pmFILMConspiracy
Theory: 1997.
12.40amSuperCasino
4amHouse Doctor 4.25amDivine
Designs 4.50amDivine Designs
5.10amWildlife SOS 5.35am-6am
Wildlife SOS
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6
7 8 9 10
11
12 13
14
15 16 17 18
19 20
21 22
23 24
11 13 6
7 34
31
9 19 12
17 17
17 16
16 12
10 23 11
40
28 22
8 6 18
3
13
4
11
18
32
20
14
5
14
25
31
35
23
16
15
24
8
15
33
10
13
4
17
ACROSS DOWN
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4

C L A S P B E L L E
L P E R U S E T
I N E R T S T A S H
M I T A O
B L U N D E R B U S S
O G M L A
S U S C E P T I B L E
C L O S J
A G R E E S H O V E
B Y A N K E E C
S P E N D A D E P T
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The nine-letter word was
CLAMPDOWN
1 Hairdressers shop (5)
3 Round objects used
in games (5)
7 Christian celebration
of the Resurrection
of Christ (6)
10 Compound capable of
turning litmus red (4)
11 Slab found on a roof (4)
12 To a severe or serious
degree (10)
15 Spectator who
can describe what
happened (10)
20 City, site of the
Taj Mahal (4)
21 Strong restless desire (4)
22 Open to public view by
the ceremonial removal
of a covering (6)
23 Matching set of
furniture (5)
24 Assumed name (5)
1 Preliminary
drawing (6)
2 Eight singers
who perform
together (5)
4 Be of service (5)
5 Face (4)
6 Divisive (9)
8 Atmosphere (3)
9 Covered with a
thick and slippery
liquid substance (5)
13 Belgian city (5)
14 Sacred songs (6)
16 Construct (a
building) (5)
17 Connected with
seagoing forces (5)
18 ___ Lanka, country
formerly known
as Ceylon (3)
19 Soap froth (4)
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
THURSDAY 24 MAY 2012
NATIONAL TREASURES JUBILEE
SPECIAL BBC1, 9PM
Sian Williams and Dan Snow present
from Westminster Abbey a special
edition of the show celebrating
Britains past.
THE HOARDER NEXT DOOR
CHANNEL4, 9PM
Stelios Kiosses pairs a 44-year-old
aspiring artist with a 71-year-old to
take part in the six-week hoarders
rehab programme.
COWBOY BUILDERS
CHANNEL5, 9PM
Dominic Littlewood and Melinda
Messenger travel to Nottingham to
help a couple whose extension work
was botched by a female builder.
TVPICK
LONDON Welsh chiefs have hit
back at the Rugby Football Union
after learning their promotion bid
is doomed to failure even if they
win the Championship play-off.
The RFU ruled yesterday that the
Exiles do not meet Premiership
criteria regarding stadia, as their
home, Old Deer Park, is inadequate
and plans to play at Oxford
Uniteds Kassam Stadium are not
sufficiently robust. London Welsh
directors responded by declaring
their grave disappointment,
insisting they do have so-called
primacy of tenure over the Kassam
and arguing that clubs such as
Wasps had similar arrangements.
It is not clear why an exception
made in the case of at least four top
flight clubs (a third of the total)
might not now be extended to a
fifth, directors said in a statement.
London Welsh won the play-off
first leg 37-21 in Cornwall last
night. The ruling means Newcastle
will stay in the Premiership despite
finishing bottom, pending any
appeal by London Welsh, as Cornish
Pirates have not applied to join.
London Welsh
anger at block
on promotion
G
E
T
T
Y
CONTROVERSIAL midfielder Joey
Bartons QPR future was plunged
into fresh doubt last night after he
received a 12-match ban for three
instances of violent conduct against
Manchester City earlier this month.
Rangers captain Barton will not
play until November at the earliest
after being handed an eight-game
suspension on top of his statutory
four-match ban for accruing a second
red card of the season.
One of the longest bans ever issued
by the Football Association, the pun-
ishment is the latest stain on
Bartons chequered career and will
add to pressure on QPR to terminate
the 29-year-olds contract.
There are rules of conduct that
should be adhered to, said the chair-
man of the FAs regulatory commis-
QPR captain
Barton banned
for 12 matches
sion. Such behaviour tarnishes the
image of football in this country, par-
ticularly as this match was the pinna-
cle of the season and watched by
millions around the globe.
Barton, who was sent off for elbow-
ing Carlos Tevez, admitted kicking
Sergio Aguero before being forcibly
restrained. He denied attempting to
headbutt Vincent Kompany and
requested a personal hearing yester-
day, but was found guilty of the third
charge too. He was also fined 75,000.
The former Newcastle and City
player, who has one England cap,
could find himself excluded from
QPRs 25-man squad for next season,
depending on the outcome of the
clubs own internal investigation.
Barton, sentenced to six months in
prison in 2008 for common assault,
joined Rangers from Newcastle last
summer on a three-year contract.
ZARAS OLYMPIC FLAME RIDE DRAWS CROWD
MORE than 30,000 people gathered at Cheltenham Racecourse yesterday to see the
Queens granddaughter Zara Phillips carry the London 2012 Olympic flame aboard her
horse Toytown. Former eventing world champion Phillips, who still hopes to qualify for
this summers Games, rode a lap of the course before lighting a cauldron.
THURSDAY 24 MAY 2012
34
SPORT
cityam.com/sport
BY FRANK DALLERES
BY FRANK DALLERES
35
IN BRIEF
England pair sit out training
nFOOTBALL: Forward Danny
Welbeck and full-back Glen Johnson
missed training yesterday as England
prepared for Saturdays friendly in
Norway. Midfielder Scott Parker looks
over his injury and set to play in Roy
Hodgsons first match in charge.
Froch: Mental crowd on my side
n BOXING: Super-middleweight Carl
Froch believes home advantage will
be decisive when he fights Lucian Bute
for the Canadians IBF world title in
Nottingham on Saturday. Froch said:
The crowd will be silent when hes
throwing punches and going mental
when I throw punches.
Watson and Robson win in Paris
n TENNIS: Young Britons Heather
Watson and Laura Robson took a step
towards the main draw of the French
Open yesterday when they won their
first qualifying matches.
G
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T
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Y
C
URRENTLY basking in the glory
of their extraordinary
Champions League success,
Chelsea must feel on top of the
world. Surely the last thing the club
want is for the players to return in
July for pre-season training in a state
of disarray. So why are they even
considering not appointing Roberto
di Matteo manager? Theyre in
danger of creating a problem where
there isnt one.
I really cant see how the interim
coachs promotion is even open to
debate. He is clearly extremely
popular with the players, having
kept them happy and motivated
since taking charge following the
sacking of Andre Villas-Boas. He has
handled himself with dignity,
shown tactical innovation oh, and
he won the Champions League. It
doesnt get any better than that I
dont care who you are.
It comes down to where Chelsea
want to go from here. Presumably
theyre keen to regain the Premier
League title, which you might argue
their squad is worse equipped for
than cup competitions. Yet Di
Matteo did well in the league when
he took over, and if they faded it
was partly because they had their
eyes on Europe. In any case they
might only need three new players,
rather than the thorough overhaul
some believe, and they dont need a
manager to lead that as Roman
Abramovich dictates policy.
I dont know who else Chelsea
have realistically got in mind for
the role, but I cannot see that
theres anyone better qualified than
the Italian to take them into the
new season. Whats more, getting
rid of the first man to lead the club
to the Champions League would
send out a terrible signal to other
bosses. Managers arent daft. It
makes no sense for Abramovich and
Chelsea to take a big-money risk on
a big name when it might not work.
It is clear to me they should end the
wait and appoint Di Matteo now.
Trevor Steven is a former England
footballer who played in two World Cups
and two European Championships.
FOOTBALL
COMMENT
TREVOR STEVEN
Di Matteo has kept the players happy and motivated since replacing Villas-Boas
NORTHAMPTON No8 Phil Dowson
is set to captain England for the
first time against the Barbarians at
Twickenham on Sunday.
Dowson, 30, has been handed the
armband in the absence of regular
skipper Chris Robshaw, one of
several players on Premiership final
duty the previous day.
Despite only winning his first
cap during this years Six Nations
and then losing his starting place
to Ben Morgan, Dowson is seen as
one of Stuart Lancasters leaders.
He was preferred for the role
over Saints skipper Dylan Hartley,
set to make his first appearance
since an eight-week ban for biting
Irelands Stephen Ferris.
Phil is one of the key members
of out leadership group, said
forwards coach Graham Rowntree,
who added of Hartley: The fact he
has been out for eight weeks, I
want Dylan to focus on playing, to
focus on his game and not be
saddled with captaincy issues.
cityam.com
THURSDAY 24 MAY 2012
BY SPORTS DESK STAFF
England opt for Dowson over
Hartley as skipper for Baa-Baas
ENGLAND paceman Stuart Broad is
hoping to continue his fine form in
the second Test against West Indies
on his home turf of Trent Bridge
tomorrow.
Broad, who claimed 11 wickets in
the first-Test victory at Lords earlier
this week, took a hat-trick against
India at Nottinghamshires ground
last summer.
It was definitely one of the
highlights of my career, he said. I
love playing at Trent Bridge. Its a
fantastic ground, the home support
is brilliant and looking back to last
summer it was great to get the win.
I dont think it could have been
much better. The atmosphere was
incredible when I bowled Kumar for
the hat-trick. It went wild.
Batsman Kevin Pietersen was
fined by England chiefs the ECB last
night for criticising pundit Nick
Knight. Pietersen had asked on
Twitter how Nick Knight worked
his way into the commentary box
for the Tests? Ridiculous.
BY SPORTS DESK STAFF
Home comforts provide Broad
hope of extending purple patch
There shouldnt be any debate:
give Di Matteo Chelsea job now
Up for the
challenge
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CHELSEA have been urged to
forget star signings such as Eden
Hazard and focus on appointing
the right manager, or risk wasting
a boost to their brand value
earned by conquering Europe.
Champions League success
helped increase their brand value
by 27 per cent to an estimated
251m, although they lie fifth in
the Brand Finance Football 50,
which ranks the worlds top clubs.
Buying players such as Lille
forward Hazard might give them
another short-term lift, says David
Chattaway, who helped compile
the list, but greater value lies in
finally hiring a long-term boss.
The current managerial merry-
go-round at Chelsea is limiting the
clubs commercial clout, Brand
Finances Chattaway told City A.M.
Sponsors are eager to create
long-term partnerships and need
stability to do this. If Chelsea want
long-lasting success then they
need a long-lasting manager.
Boss not stars
best for Blues
brand boost
BY FRANK DALLERES
Results
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Incoming Newcastle boss Dean Richards, banned
for three years over the Bloodgate scandal, is set for
a Premiership return if London Welsh are blocked
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