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www.cityam.comIssue 1,478 Thursday 29 September 2011 FREE

Treasury accused of dishonesty over its position on Tobin tax

THE GOVERNMENT was branded “dis-honest” yesterday, after it said it had“no objection” to a global Tobin taxthat would wipe billions off City prof-its – even though it continues tooppose a European version of the levy.

A spokesperson for the Treasury said the government had “no objec-tion in principle” to a financial trans-action tax but that it “would have to

apply globally” because a Europeanone would put London at a competi-tive disadvantage.

Bill Cash, the Conservative MP forStone, told City A.M.: “The governmentis being thoroughly dishonest forpolitical reasons. There is no justifica-tion for a Tobin tax in any form, which would badly affect growth whether it

was global or not.”Privately, Treasury officials admitthe only reason the government backsa worldwide Tobin tax is because such

a levy would never secure supportfrom financial centres such as HongKong, allowing the coalition to adopt apolitically popular position withouthaving to deal with the consequences.

José Manuel Barroso, the EuropeanCommission president, yesterday pro-posed a financial transactions tax that would raise up to €55bn (£48bn) a year

to help bail out troubled countries.Barroso is pressing ahead with thetax even though the commission’sown cost-benefit analysis shows it

would reduce Europe’s GDP by asmuch as 1.76 per cent or €216bn a year.It also estimates that the tax couldpush as much as 90 per cent of European transactions off-shore andcost 478,000 jobs.

In an article for City A.M. NeilBentley, the deputy director general of employers’ organisation the CBI, said a

Tobin tax would have a “chilling effecton growth”. ALLISTER HEATH: P2NEIL BENTLEY: P22

WEALTH MANAGEMENT: P26

BY DAVID CROW

POLITICS▲

AMAZON UNVEILS

ITS iPAD KILLER AMAZON yesterday seized the initiative in the tablet wars, unveiling a new device that will sell for just half the price of an iPad 2.

The world’s biggest online retailer hopes the KindleFire, priced at just $199 (£127), will build on the successof its range of e-readers. The launch is the first seriousthreat to Apple’s dominance of the nascent tablet mar-ket, with rivals struggling to gain traction against theunprecedented success of the iPad.

Analysts say the aggressive pricing means the device will almost certainly be a loss leader, with Amazon’sprofit coming from the sale of digital content such asfilms, music, apps and ebooks.

The tightly controlled unveiling of the Fire in New

York yesterday borrowed heavily from Apple’s famouslaunch events, with chief executive Jeff Bezos evenquoting Steve Jobs’ famous line: “Now, I’ve got onemore thing to show you”.

The seven inch device will run a customised versionof Google’s Android Eclair operating system and fea-ture a newly-created browser dubbed Amazon Silk.Unlike the Kindle e-reader, the Fire will be wi-fi only and does not come with either a camera or micro-phone. Users will not have access to the AndroidMarket with its selection of more than 500,000 apps.Instead they will be directed to Amazon’s version of thestore with around 10,000 available apps.

Amazon Prime customers in the US will be able tostream unlimited movies and TV shows through theFire but it is not clear whether or when this will berolled out in the UK. Pricing for the device in the UK has

not yet been confirmed. The Fire cements ARM Holdings’ dominance in

the mobile processor market, with its CPU under-stood to be designed by the Cambridge-based firm.

Amazon saw itsstock close up 2.5per cent after theannouncement,and also unveileda new, smaller version of its e-reader which willsell for just £89.

Apple is expectedto launch its new iPhone 5 on Tuesday.

BY STEVE DINNEEN

TECHNOLOGY▲

Barroso is proposing a Tobin tax

Amazon boss Jeff Bezos took a leaf out of Steve Jobs’ book to launch the

Fire

8/4/2019 Cityam 2011-09-29


News2 CITYA.M. 29 SEPTEMBER 2011

UK’s 50p toprate slammedONLY three other European Unionstates have a higher top rate of incometax than the UK, consultancy groupKPMG said today.

Outside the EU, just Japan and thesmall Caribbean island of Aruba havea higher top rate than the UK, out of 96 countries surveyed by the group.

Western Europe remains the region with the highest average level of toprate income tax in the world.

Across the European Union as a whole, the average top rate is lower, at37 per cent. While the UK’s 50p per £1rate is uncompetitive compared tomost of its European neighbours,rivals for high-earning talent increas-ingly lie in other corners of the world,the survey said.

“Truly globally mobile international

executives move around the world andtend not to stay in one region,” com-mented KPMG’s Marc Burrows. “They are not weighing up London againstDublin or Geneva but looking at HongKong, Singapore, Dubai, all aroundthe globe.”

In Asia the top rate of income tax is23 per cent, the calculations show.

Hong Kong and Singapore -- twofavourite destinations for Western workers looking to move East – havetop tax rates of 15 per cent and 20 percent respectively.

Many governments, such as the UK,

have been reluctant to reduce thehighest band of income tax during aperiod of attempted deficit reduction,Burrows said. “However, while govern-ments may not move, individuals, par-ticularly higher earners, continue todo so and this should not be over-looked when addressing deficit con-cerns.”

And the UK’s 50 per cent top ratecould be causing further harm to theeconomy, according to AlexHenderson, tax partner at PwC.

“While every person who decides toleave the UK is a drop in the potential

tax base for the country, we never seethe people and economic activity thatsimply never comes here,” Hendersonexplained.

Yet taxation is not the only factoraffecting people’s choice of location,Henderson added. “There are many other factors that people take intoaccount such as infrastructure, timezone and ease of doing business. Thereare limits to what can be done but weare hoping that the government willcontinue to focus on making the UK an attractive country for new econom-ic activity,” he said.

BY JULIAN HARRIS

TAXATION▲

Why a Tobin tax would be a disaster

VERY strange. That is the only way that the coalition’s half-hearted, let’shave our cake and eat it, position onthe Tobin tax can be described. The Treasury is rightly opposed to theEuropean Union’s plan – but it actual-ly supports a Tobin tax in principle, aslong as it is implemented globally andnot just in the EU. Obviously, Europegoing it alone would be especially dis-astrous as business would simply migrate elsewhere. Yet even were itimposed globally, a Tobin tax wouldstill slash transaction volumes, makemarkets less liquid, increase the cost

of raising finance and punish compa-nies that operate in more than onecurrency (for more, see page 22).

The coalition’s mealy-mouthedapproach means that it is able to pri-

vately promise its supporters in theCity that it is on their side – whileattempting to remain equally friendly with the influential left-wing pressuregroups, charities, celebrities andmedia organisations that back such atax. Not for it a principled stand; no wonder that there is a growing view that (with a few exceptions) the coali-tion doesn’t believe in anything apartfrom clinging to power.

The problem is that ideas matter. If the government refuses to make theintellectual and economic caseagainst a Tobin tax, it will actually make its long-term implementationmore likely. I know that many peoplegenuinely believe that such a tax would be a good thing and wouldraise billions – the EU’s guess yester-day was €57bn a year – at little or nocost to the economy. Unfortunately,

they are deeply and sadly misguided.MEPs have argued in the past that

the tax would collect £20bn from UK trades alone, an astonishingly largesum of money equivalent to almost

half of all corporation tax receipts. That is of a similar order of magnitudeas the entire global profits of UK-baseduniversal banks – though it would bepaid for by thousands of financialfirms that operate here and theirinvestors, including pension fundsand insurance firms, whose returnsfrom investments would be decimat-ed. It is absurd to believe that what would probably be the biggest ever taxhike (much of it sent to Brussels) couldquietly be imposed on the City with-out any consequences in terms of jobs.

Others believe the real cost would be even larger. The World Federationof Exchanges puts the total value of financial transactions in the UK at£600 trillion a year. Given that Tobinsupporters believe taxed transactions would remain at identical levels (asilly suggestion, of course, but the cru-

cial assumption that explains why pro-Tobin folk believe their tax willraise so much) this means that the taxcould yield £40bn-£300bn, dependingon the exact composition of trading

(yesterday’s proposal was for a mini-mum tax rate on trading of bonds andshares of 0.1 per cent and 0.01 per centfor derivatives). There is of course no way that such sums would ever beraised. Transactions would simply cease to happen. Tens of thousands of jobs would be lost overnight and theCity of London would be destroyed. The tax would raise a couple of billionat most, while increasing volatility by forcing traders to concentrate on larg-er, less frequent trades.

Those deluded souls who believethey have discovered a new way of solving the world’s problems by tax-ing financial transactions will haveachieved nothing other than cripplingthe economy. Why can’t the coalitionsimply come out and say this?

[email protected] Follow me on Twitter: @allisterheath

NEWS | IN BRIEF

Brit heads up new Walmart armAmerican supermarket behemothWalmart has shaken up its top team,and has chosen British exec DavidCheesewright to head a new divisionencompassing the UK, Canada and Sub-Saharan Africa. Cheesewright, the for-mer chief operating officer of

Walmart-owned Asda, was most recent-ly chief exec of Canadian operations.

UBS boss asks for less risky bankUBS interim chief Sergio Ermottiappealed to staff in an internal memo toback efforts to make the bank less com-plex and risky yesterday, following the$2.3bn (£1.5bn) loss from unauthorisedtrading. Ermotti told workers he has “nomagic recipe to inspire you to redoubleyour efforts. I can only appeal to yourprofessionalism, your loyalty and yourdetermination to succeed.”

More suitors are sizing up LMEInterest in the London Metal Exchangeas a takeover target has snowballed andthe number of suitors has risen to dou-ble digits because business is boomingwith volumes at record levels, its chief executive Martin Abbott said yesterday.

EDITOR’S LETTER

ALLISTER HEATH

Editorial StatementThis newspaper adheres to the system of

self-regulation overseen by the Press ComplaintsCommission. The PCC takes complaints about theeditorial content of publications under the Editor’sCode of Practice, a copy of which can be found at www.pcc.org.uk

Printed by Newsfax International,Beam Reach 5 Business Park,Marsh Way, Rainham, Essex, RM13 8RS

Distribution helplineIf you have any comments about the distributionof City A.M. Please ring 0207 015 1230, or [email protected]

George Osborne hascome under pressureto reduce the country’s50 per cent top rate of income tax

4th Floor, 33 Queen Street, London, EC4R 1BRTel: 020 3201 8900 Fax: 020 7283 5334Email: [email protected] www.cityam.com

EditorialEditor Allister HeathDeputy Editor David HellierNews Editor David CrowActing Night Editor Marion DakersBusiness Features Editor Marc SidwellLifestyle Editor Zoe StrimpelSports Editor Frank DalleresArt Director Jo SimpsonPictures Alice Hepple

CommercialSales Director Jeremy SlatteryCommercial Director Harry OwenHead of Distribution Nick Owen

HIGHEST TOP RATES OF INCOME TAX IN THE EUROPEAN UNION

Rank Country Rate in 2010 Rate in 2011 Change

1 SWEDEN 56.6% 56.6% 0%

2 DENMARK 55.4% 55.4% 0%

3 NETHERLANDS 52% 52% 0%

4= UNITED KINGDOM 50% 50% 0%

4= BELGIUM 50% 50% 0%

4= AUSTRIA 50% 50% 0%

7 FINLAND 49.6% 49.2% -0.4%

8 IRELAND 47% 48% +1.0%

9 PORTUGAL 45.9% 46.5% +0.6%

10 GERMANY 45% 45% 0%

PLANS REVEALED FOR US-STYLE PLEABARGAINS The UK plans to introduce US-style cor-porate plea bargains that could resultin fines totalling hundreds of millionsof pounds, according to the SolicitorGeneral. “You have to have a cost-bene-fit analysis. If I can produce a system which has all the benefits [of the US]and can do justice, as well as makingmoney for this country, it seems to methat there’s something to be thoughtabout,” Edward Garnier QC said.

SEC PROBES BANKS OVER MORTGAGELOANS The Securities and ExchangeCommission is investigating RoyalBank of Scotland, Credit Suisse andother financial institutions for theirhandling of problem mortgage loans,according to public disclosures and

people familiar with the matter. TheSEC is examining whether banks mis-

led shareholders about the number of loans they might be forced to buy back

because of early defaults.PFIZER FACES OFF-PATENT SMOKINGDRUG THREATPfizer is facing a threat to its top-sell-ing smoking cessation drug Champixfrom the Bulgarian company that haslong marketed the low-cost off-patentdrug from which it was derived. A clin-ical study financed by British charitiesconcludes that Tabex, sold by Sofia- based Sopharma is as effective andmuch cheaper than alternative prod-ucts used by smokers seeking to quit.

AUDIT STAFF PLAN BID WITH MAZARSFOR WORKDistrict audit staff have teamed up with Mazars, an internationalaccountancy firm, as they plan toform a mutual to bid for local govern-ment and NHS work as the AuditCommission is abolished. Mazars, will

provide the initial funding for themutual, to be called DA Partnership.

REEBOK FINED OVER ADVERT Trainers that promised a quick way toa toned bottom have been shown tocarry flabby evidence that they work,leading to a multimillion-dollarpenalty for Reebok. The footwearmanufacturer has been fined $25m(£16m) by US regulators over theadvertising of its EasyTone shoes andflipf lops, which claim to improve theappearance of legs and bottoms.

MOULTON BIDS FOR CLARITY Jon Moulton has launched a bid forthe retail software company Clarity Commerce less than three monthsafter snapping up one of its rivals. The move cements the interest of the venture capitalist who runs BetterCapital in the retail software sector. A regular TV and radio pundit, MrMoulton used to run Alchemy

Partners until he quit two years agoafter a spat over strategy.

APD CUT ON FLIGHTS FROM NORTHERNIRELAND Air passenger duty on all long-haulflights from Northern Ireland will bereduced from £60 to £12 for passengerstravelling in economy class, and from£120 to £24 in business class from 1November. APD on short-haul anddomestic flights from NorthernIreland, and duty paid by travellersacross the rest of the UK, will be unaf-fected.

NHS CHIEF CONFIRMS PFI BAILOUTS The chief executive of the NationalHealth Service has admitted that tax-payers will have to bail out hospitalsstruggling with debts from PrivateFinance Initiative schemes. Sir DavidNicholson said some of the trustsstruggling to balance their books, andso reach semi-independent Foundation

Trust status, may have to be “sub-sidised”.

CRÉDIT AGRICOLE BOLSTERS SAFETYNETCrédit Agricole SA yesterday becamethe latest French bank to announceplans to reduce its financing needsand strengthen its balance sheet, amove aimed at showing it can adaptto harsher market conditions. Crédit Agricole said will lower the amountof financing it needs from wholesalemoney markets, drop some business-es and focus capital on its key retail banking business.

H-P HIRES GOLDMAN TO GUARDAGAINST ACTIVISTSHewlett-Packard has hired GoldmanSachs to help the firm defend itself against possible activist investors whocould push for change at H-P, peoplefamiliar with the matter said. H-P hasfelt vulnerable to possible activist

investor pressure amid questionsabout the company’s performance.

WHAT THE OTHER PAPERS SAY THIS MORNING

8/4/2019 Cityam 2011-09-29


JOHN Vickers has privately reassuredBritain’s biggest banks that they willnot need to issue billions in complexnew debt instruments to comply withhis recommendations.

City A.M. understands that severalanxious lenders sought informal clari-fication from Vickers’ IndependentCommission on Banking (ICB) recently and were told definitively that they

will not have to invent and sell new “bail-in bonds”, as parts of the ICBreport had appeared to suggest.

Instead, a technical change in thelaw, which would force existing bond-holders to be “bailed in” should the

bank fail, suffices to fulfil Vickers’ new capital requirements.

Debt costs for banks spiked follow-ing the publication of the ICB’s finalreport, which recommended thatmajor UK banks should have to issue

bail-in bonds equal in value to 7-10 percent of their risk-weighted assets.

Bail-in bonds are an untested assetclass, whose cost analysts have beentrying to calculate. UBS’s John-PaulCrutchley suggested that the recom-mendation would cause banks to“shrink or relocate”.

And yesterday, ICB critic and formerCity minister Lord Paul Myners told anaudience hosted by the Association of Corporate Treasurers: “The bail-in debtmarket is almost non-existent and yet

Vickers is assuming that very substan-tial amounts can be raised.”

Having obtained clarification from Vickers, banks are now in discussions with the UK Treasury over the details.

Despite the reassurance on bail-in bonds, however, some lenders withlow asset-to-deposit ratios are worriedthat Vickers’ capital rules could inad-

vertently force them to increase theirreliance on wholesale funding.

HSBC and Standard Chartered areless reliant on wholesale cash thanrivals and instead meet the vast major-ity of their funding needs out of cus-tomer deposits, which are viewed by regulators as a safer source of liquidity.

Yet under Vickers’ proposals, they could potentially be forced to issuemore expensive debt to meet his loss-absorbing requirements. Because thedebt would be calculated as a propor-tion of their huge global balancesheets, it could prove extremely costly.

It is understood that discussions arenow underway between the Treasury and banks to remove the perverseincentive in the proposals.

Banks in sigh

of relief overVickers rules

KAZAKH miner ENRC yesterday announced an overhaul of its boardfollowing a three-month governancereview triggered by a boardroom row,

which resulted in the exit of two well-known directors.

The FTSE 100 miner, which has been subject to long-running tensions between the group’s founder share-

holders and some board members,confirmed that Johannes Sittard willremain as chairman, despite calls forhim to stand down.

Ken Olisa, who was voted off the board in June alongside City grandeeSir Richard Sykes, told City A.M he was“astonished” by the decision to retainDr Sittard as chairman.

He added that the changes ignoredan independent report by corporategovernance experts ICSA in June,

which recommended that Dr Sittardstand aside.ENRC has also appointed Terence

Wilkinson, a former director of min-ing group Lonmin, as non-executive,

while Mehmet Dalman, an existingnon-executive director, has been pro-moted to the role of senior independ-ent director.

Felix Vulis will remain as chief exec-utive and has withdrawn his requestto step down from the board.

Miner ENRC unveils a boardrevamp but keeps chairman

SPAIN has suspended the plannedfloat of its state lottery due to the par-lous state of the stock markets.

It had hoped to raise up to €9.5bn(£8.3bn) and help convince marketsits public finances are in order.

What would have been Spain’s biggest-ever initial public offeringhad met with fierce resistance fromthe People’s Party, which opinionpolls give a commanding lead aheadof parliamentary elections inNovember.

Spain set up a company called

SEVALAE in December 2010 with a view to privatising a 30 per cent stake

in Loterias y Apuestas del Estado.“At this time, the situation in the

capital markets is different to what it was then, and SEVALAE, with dueassessment, considers conditions donot exist to guarantee proceedsreflecting the value of Loterias,” aministry statement said.

Spain’s securities regulator had been expected to publish aprospectus for the IPO this week afterthe Spanish Cabinet approved thesale on Friday and kicked off the saleon 19 September.

Spain’s economic ministry said the banks advising it on the deal were

warning the deal could fetch lessthan Loterias’ €20.8bn book value.

Spanish government postponesprivatisation of national lotteryCAPITAL MARKETS

▲

John Vickers has told banks they will not need to issue new debt Picture: REUTERS

BYKASMIRA JEFFORDMINING▲

News 3CITYA.M. 29 SEPTEMBER 2011

BY JULIET SAMUEL

EXCLUSIVE▲

8/4/2019 Cityam 2011-09-29


THE ECONOMIC threat from theEurozone crisis yesterday promptedthe Bank of England’s new regulatory body to urge banks to boost lending.

While praising the banks’ recentrecord in building up buffers of capi-tal, the Financial Policy Committee(FPC) said that bonuses and dividendsshould be cut in order to release suffi-cient credit to businesses.

Despite dividends remaining low,some banks have defended their needto provide incentives to attract invest-ment, and argued that competitiveremuneration is needed to keep talent.

The FPC -- which is currently merely an adviser to the Financial Services Authority (FSA) -- discussed the possibility of short-term policies “to reducethe risk of a significant disruption to

financial stability, and so to the supply of credit to UK households and firms.”

If the supply of credit froze, the FPC warned, the effects “could feed back through the economy to increase pres-sure on the financial system.”

Noting “severe strains in financialmarkets”, the FPC warned of “continu-ing concerns about the sustainability of external and internal debt positionsof some countries, especially in theeuro area.”

The FPC called on banks to continu-ing bolstering liquidity buffers, yetalso said: “In the event that severerisks crystallised, it would be naturalfor banks’ capital and liquidity ratiosto be run down to ensure that lendingto the non-financial economy was notimpaired.” On top of limiting divi-dends and bonuses, financial institu-tions should look at raising long-termfunding, the FPC said.

FPC: Eurozonecrisis couldfreeze credit

houseoffraser.co.uk

BY JULIAN HARRISREGULATION

▲


BEHIND THE LINES | WE ANALYSE THE FPC STATEMENT

The new committee as yet does nothave any regulatory powers, but isadvising the Financial Services

Authority (FSA). With time it willacquire powers of its own with which toregulate financial companies’ practices.The FPC is suggesting that it build upthese powers incrementally.

▲The co m m ittee’s...understa

nding... would

i m prove with experience. A s such it was m inded

to reco m m end a relatively narro w initial set [of

po wers], which could then evolve. Further m ore, inno

-

vation and change within the financial syste m

would give rise in due course to ne w risks...

“ “

The Financial Policy Committee ishappy with banks building up theirliquidity levels to protect them-

selves from future shocks – but alsowants them to boost lending, in order tostimulate the economy. How can they doboth? Simple, the FPC says: cut back onbonuses and shareholder dividends.

▲Banks should take any opp

ortunity they had

to strengthen their levels of capital...

without constraining lending... This could inclu

de

raising long-ter m funding whenever possible and

ensuring that discretionary distributions

reflected any reduction in profits.

“ “

Mervyn King is leading the Bank’s new regulatory body

NEWS | IN BRIEF

London defies house price slumpHouse prices in London rose by 0.5 percent in August, the Land Registry saidyesterday –despite prices dipping by 0.3per cent across the rest of the UK. Theaverage house in the capital now costs£348,686, more than double the nationalaverage.

Inflation expectations still stickyStubbornly high inflation is here to stay,according to a survey released byYouGov yesterday. Inflation expectationsfor the year ahead stuck at 3.5 per centin September, while respondents expectprice pressures to be slightly higher (3.8

per cent) over the next five to 10 years.

Wages could edge up next yearOver a third of human resources profes-sionals expect to boost pay awards in2012, a poll by Incomes Data Servicesrevealed this morning. “Over half intendto make the same level of pay award in2012 as they made in 2011,” the reportsaid, with only 13 per cent expecting toreduce pay settlements.

US firms ramp up investmentsUS businesses stepped up investmentspending in August, in a rare positive signfor the country’s economy. Non-defencecapital goods orders excluding aircraft, aproxy for business spending, increased 1.1

per cent after falling 0.2 per cent in July.

8/4/2019 Cityam 2011-09-29


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EUROPE needs to embrace fiscalunion to save the euro, according toEuropean Commission (EC) presi-dent JoséManual Barroso.

Addressing the EuropeanParliament yesterday, Barrosodeclared: “We need to complete ourmonetary union with an economicunion. We need to achieve the tasksof Maastricht. It was an illusion tothink that we could have a commoncurrency and a single market withnational approaches to economicand budgetary policy.”

He added that the EC is workingon a scheme to “deepen economiccoordination and integration”, in

which he wants the European

Central Bank (ECB) to take a centralrole. And he said that “jointissuance” of euro-bonds to integrategovernments’ treasuries entirely “will be seen as a natural and advan-tageous step for all”.

However, European leaders areembroiled in a row over the termsof Greece’s second €109bn bailout

before it has yet been fully ratified.Economists are pushing for lead-

ers to boost the loss suffered by private holders of Greek debt from a 50per cent haircut, or write-down, ontheir bonds to 90 per cent – far

beyond the terms of the deal struck in July.

German Chancellor AngelaMerkel had suggested yesterday thatthe terms of the agreement could

be changed, but the German parlia-

ment will vote on the original dealthis morning.

An EC spokesperson chastisedministers for suggesting changes. “If

we try to be predictable in our deci-sions and project confidence, it’snot helpful... to hear it couldchange,” he said.

Meanwhile, the troika – the ECB,EC and IMF – arrived back in Athens

yesterday to resume their surveil-lance of the country’s implementa-tion of budget cuts it must make toget hold of its next €8bn in aid.

And Slovakia, which is the euromember state most likely to votedown Greece’s second bailout,could try to bring its vote forwardsafter three parties in its governingcoalition called for parliament to

vote before mid-October.

Barroso calls on EUto finish integratingBY JULIET SAMUEL

EUROZONE▲

THE EURO is dead and cannot besaved, while Greece will inevitably default, Attila Szalay-Berzeviczy,head of global securities servicesat UniCredit Group wrote in anarticle on a Hungarian website yes-terday.

And Unicredit chief executiveFederico Ghizzoni was reported tohave said that US banks are with-drawing from the region entirely.

“Having today US banks tell you

‘we’re out of Europe,’ ‘we havedivested,’ ‘we’re waiting to see

what happens’ is -- I believe -- aunicum for the past 50 years,” hesaid.

His downbeat view chimed withthat of his exec, Szalay-Berzeviczy,

who signed his article as formerhead of the Budapest Stock Exchange. “The common currency of Europe is practically dead,” he

wrote. A UniCredit spokesperson said:

“The comments expressed by MrSzalay-Berzeviczy are his own per-sonal view and do not reflect the

position of the company.”FORUM: P23

BANS on short-selling stocks inFrance Italy and Spain have again

been extended. The Italian and French bans

will remain until 11 November, while the Spanish curbs wouldremain until market conditionschanged, the European Securitiesand Markets Authority (ESMA)said in a statement.

The three countries introducedthe bans on 12 August in a bid to

curb wild swings in stock mar-kets.

Unicredit execs declarethat the euro is finishedShort sellingban extendeduntil November

EUROZONE▲

EUROZONE▲

THE FINNISH parliament yesterday backed extending the powers of theEurozone bailout fund as members of the ruling coalition sought to keepthe country on a pro-Europe course.

Lawmakers comfortably supportedthe new powers for the EuropeanFinancial Stability Facility (EFSF), with103 in favour, 66 against and 30absent from yesterday’s vote.

The Finnish government is underpressure from voters fed up with bail-ing out other European nations, par-ticularly after the eurosceptic TrueFinns made strong gains in April elec-tions to become the leading opposi-tion party.

All parliamentarians from the sixcoalition parties agreed to the 21 July proposal by Eurozone leaders to allow

the EFSF to give precautionary loansto countries and buy sovereign bonds

when needed.

Finland givesits backing toEFSF extension

EUROZONE▲

Countries that ratified the bailout before this week

ANALYSIS | Five countries have yet to ratify Greece’s second bailout

ESTONIA & SLOVENIA: ratified it on Tuesday

FINLAND: ratified it yesterday

GERMANY: votes today

AUSTRIA: votes on Friday

NETHERLANDS & CYPRUS : vote next week(Cyprus not shown on map)

SLOVAKIA: votes in late October

GERMANYWill pass the bailout today but thegoverning coalition could see a signifi-cant rebellion, in a blow for Merkel.

AUSTRIAThe bill is very likely to pass despitethe government failing to fast-track it.

NETHERLANDSEven if some MPs rebel, the euro-phileopposition will ensure passage.

SLOVAKIACould defeat the bill if junior coalitionpartners are not persuaded.

8/4/2019 Cityam 2011-09-29


LLOYDS has received just one formal bid on the 632 branches it is selling.

NBNK Investments, the buy-out vehicle set up by Lord Levene, bid sub-stantially below the £2bn that Lloydsis hoping to get.

As part of the conditions of the bid,City A.M. understands that NBNK

would agree to buy only a portion of the assets on sale, largely mortgages,narrowing a £30bn funding gap in theoriginal package to around £10bn. It

would purchase the entire £36bn

deposit base.Lloyds has decided to extend its soft

deadline for bids as the other poten-tial buyers, Hugh Osmond’s SunCapital and Co-operative FinancialServices, have requested more time todo due diligence on the assets.

At the core of their concerns is how the worsening economic situation

will affect the funding gap in the branches. Lloyds had argued that it would narrow organically as con-sumers paid back their mortgages,

but buyers are not convinced. A source familiar with the deal said

that Sun Capital and Co-op are notcomfortable bidding yet with thedegree of uncertainty. As City A.M.revealed early this month, Lloyds hashad trouble allaying bidders’ fearsover the funding issue, eroding theprice it is likely to get.

If Lloyds decides it cannot getenough for the branches, it could try to float them, but with London boast-ing a dismal record for f loats recently,that could prove risky.

The deal must complete in 2013under an arrangement reached with

the European Commission.

Lloyds getsjust one bidon branchesBY JULIET SAMUEL

BANKING▲


* These views are those of the individuals above and not necessarily those of their company.

ANALYSIS l Lloyds Banking Group PLC

p

22 Sept 23 Sept 26 Sept 27 Sept 28 Sept

37

36

35

34

33

32

36.1628 Sept

Bob Diamond’s bank Barclays said it is working on customer service Pic: REUTERSBRITISH customers made more com-plaints about Barclays than any other

banking brand in the first half of the year, according to data released by theFinancial Services Authority (FSA) yes-terday.

Barclays was the subject of 251,563complaints, with 53 per cent of closedcases upheld in customers’ favour, theregulator’s figures showed.

Next on the list was Lloyds TSB – adivision of the part-nationalised LloydsBanking Group -- which received181,907 complaints between January and June. Santander UK was third,

with 168,888 complaints.Banks remain in the firing line of

the general public and politiciansaround the world, with memories stillfresh over the billions of pounds of tax-payer money that was spent to prop up

the system during the credit crisis.Barclays said it was working hard to

improve its service and pointed outthat the number of complaints aboutit during the first-half of this year wasdown 14 per cent from last year.

It said: “Delivering excellent serviceto our customers is our goal every sin-gle day, in every single way a customerinteracts with us... When we do get it

wrong, we apologise, try to correct itquickly and identify how to prevent itfrom reoccurring.”

Barclays is topof the leaguefor complaints

BANKING▲

CITY VIEWS: DO WE NEED ANOTHER RETAIL BANK?Interviews by Claire Farrell

“It's definitely a good idea to open up to another bank. All wehave at the moment is the big four, and they’re doing anawful job. The regulations on them are too lax, so theycan pull in huge profits.”

JASON PHILLIPS | REED PROFESSIONAL

“I think another bank would be a good idea, as the currentones could offer more and just aren't doing a very good job. On a

personal level, I'd welcome a new high street branch just forbetter use of technology and online services.”

ANDREW CUSKELLY | EMC

“To have another high street bank wouldn't hurt. But I think thefirst thing that needs to happen is we need a clearer picture of how separate the retail arms are from investmentarms of the existing banks.”

TRISTAN DUPPEN | BLOOMBERG

8/4/2019 Cityam 2011-09-29


8/4/2019 Cityam 2011-09-29


INVESTORS are pulling money fromMan Group at the fastest rate sinceearly 2009, the world’s largest listedhedge fund said yesterday.

Man shocked the City when it saidclients withdrew a net $2.6bn(£1.67bn) between the start of July and the end of September.

Analysts at Singer Capital Marketshad expected net outflows of just$200m and the Man board is now discussing whether the market

announcement could have been bet-ter handled.

Man saw total assets under man-agement fall to $65bn, down 8.45 percent from $71bn at the end of June. The results led Man shares to plunge24.9 per cent to 180p last night.

Asked if the Eurozone crisis isnearly as bad as the crash of 2008-09,

chief executive Peter Clarke told City A.M.: “Yes. The problems are, clearly. They need to be resolved.”

Clarke said Man was able to con-tinue to buy and sell financialinstruments comfortably but warned that investor appetite will be“generally suppressed” for the rest of the year.

The update raised questions aboutMan’s $1.6bn 2010 purchase of small-er rival GLG, which it bought todiversify away from its main com-puter-driven fund AHL and enhanceearnings power.

Man was hit by poor performanceand redemptions from hedge fundsrun by its GLG unit. In particular, its Alpha Select hedge fund fell 13.7 percent in the five months to August, while its European Opportunity fund was down 12.4 per cent and itsEmerging Markets fund was 14.7 percent lower.

Man sharesplunge after$2.6bn pulled

UK funds house Liontrust AssetManagement said its assets fell morethan six per cent in its first-half,despite pulling in new client money in August, after slumping stock mar-kets hit its core range of equity funds.

Liontrust, which is trying torebuild its business after the exit of two star managers -- and the bulk of its assets -- in 2009, said clients added£45m of new money in the quarter to27 September, the fifth consecutive

quarter of net inflows. The inflows were not enough to offset weakeningstock markets, hit by Eurozone debt worries and fears of another reces-sion, however, and assets fell 6.13 percent to £1.2bn in the half-year to theend of September, the firm said in astatement yesterday.

“The asset management industry isenduring a challenging time, with nosign of an end to the market and eco-nomic turbulence,” said chief execu-tive John Ions. Shares closed down 6.2per cent last night at 68p.

Losses soar at AmbrianCapital after write-down

LOSSES at precious metals specialist Ambrian Capital more than doubledafter it made a £2.15m goodwill write-down on its broking business.

The impairment charge on Ambrian Partners, a corporatefinance and research subsidiary,pushed the group to a £1.18m pre-taxloss for the half-year to 30 June, up156 per cent on the same period last year.

Ambrian Capital, a naturalresources investment bank which last year launched a private equity busi-

ness, yesterday said the volatility inglobal equity markets was behind the write-down on the broker.

The group’s metals business washit by the Japanese earthquake inMarch, which caused the closure of anumber of smelters, and the “sub-dued” Chinese demand for refinedcopper.

Robert Ashley, group chief execu-tive, said: “In relative terms Ambrianhas had a reasonable trading per-formance during the period, but eco-nomic and political headwinds aremaking for a more difficult secondhalf.”

Liontrust tamed byslumping equities

BY PETER EDWARDS

HEDGE FUNDS▲

THE turnaround at MAM Funds iscontinuing as it reported a rise of nearly a tenth in assets under man-agement. The AIM-listed firm saidfunds rose nine per cent to £1.68bnfor the half-year to 30 June, as itsteered clear of the “index huggingmentality”. Revenue rose seven percent on last year to £10.7m. The firmsuffered during the financial crisis but said in April it had freed itself from restrictive banking covenants.

Turnaroundgathers paceat MAM Funds

FUND MANAGEMENT▲

FUND MANAGEMENT▲

COMMODITIES▲


Hedgie fee model is not fit for such volatile times THE reaction to yesterday’s ManGroup statement was a tad over-done. Prior to the announcement,its market cap was £5.7bn, roughly eight per cent of its £71bn of assetsunder management (last stated atthe end of June).

Following the revelation thatassets under management had fall-en to £65bn, its market cap plunged

to £4.5bn, roughly seven per cent of AUM. Assets fell by 8.5 per cent – butthe stock lost nearly 25 per cent. Why did investors overreact?

Firstly, the numbers raised con-cerns over Man’s $1.6bn acquisitionof GLG last year. The funds it pickedup as part of that deal performed

poorly: GLG alternatives was down by $1.1bn in the second quarter, while the long-only fund lost $1.9bn.

Conversely, AHL, Man’s flagshipfund, added $1.5bn during the threemonth period. The GLG funds aremanaged by humans while AHL is aquant fund, which uses complexalgorithms to beat markets. In the battle of man vs machine, the com-

puters have come out on top. Worse still, some investors are

beginning to question the viability of the hedge fund fee model in theseextremely volatile times.

If a client had put $1m into theGLG Long-Short fund in June, they would have made $5,000 by the end

of August. But they would have hadto pay a two per cent managementfee on the entire $1m as well as a 20per cent performance fee on theprofits: the total cost would be$21,000 – wiping out the small gain.

Although they would have lostmore in an S&P tracker, there wereother asset classes – such as goldand Treasuries – that would have

been a better bet. No wonder clientspulled a net $2.6bn out of Man’sfunds during the second quarter.

[email protected]

BOTTOMLINEAnalysis by David Crow

ANALYSIS l Man Group

p

22 Sep 23 Sep 26 Sep 27 Sep 28 Sep

250

230

210

190

180.0028 Sept

Man chief Peter Clarke concernedover debt crisis

Picture: REUTERS

8/4/2019 Cityam 2011-09-29


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8/4/2019 Cityam 2011-09-29


BP faced an arbitration hearing yes-terday with its billionaire partnersin the Russian joint venture TNK-BP, who are claiming damages againstthe oil giant for breaching a share-holder pact.

BP, which has refuted the claims,prompted the spat with the consor-tium known as Alfa Access Renova(AAR) by agreeing a share swap and Arctic exploration deal withRussian-state-controlled Rosneft ear-lier this year.

AAR, which owns half of oil com-pany TNK-BP, secured a courtinjunction that blocked the deal, which finally collapsed in May when the four oligarchs led by

Mikhail Fridman refused a $32bn(£20.40bn) buyout offer for their TNK-BP stake from BP and Rosneft.

Now AAR is asking a Stockholm- based tribunal to rule on whetherthe BP-Rosneft alliance breached anexclusivity clause in the sharehold-er pact, which grants TNK-BP firstright of refusal to any new energy deals in Russia.

Meanwhile, minority sharehold-ers in TNK-BP, with whom AAR denies any relationship, have filed aseparate lawsuit in a Russian courtseeking 154.3bn roubles (£3.1 bn) of damages over the oil group’s failedattempt to partner with Rosneft.

BP, which is calling for the case to be dismissed, called the claims were“absurd and completely baseless.”

Both AAR and BP declined to

comment on the arbitration hear-ing, whose proceedings are confi-dential.

In a separate development, BP hasput on ice talks on a deal to sponsora high-tech hub championed by Russian President Dmitry Medvedev and chaired by Viktor Vekselberg, a TNK-BP shareholder, according tothe Russian daily business paperKommersant.

The deal was due to have takenplace during Prime Minister DavidCameron’s visit to Moscow earlierthis month but BP pulled out at thelast minute, the newspaper said.

A spokesperson for BP said thefirm “had not walked away” fromthe project but its future dependedon the agreement of certain details with the parties involved.

BP and oligarchs inarbitration hearingBYKASMIRA JEFFORD

ENERGY▲

BRITISH oil explorer Cairn Energy saidit drilled a dry hole off the coast of Greenland, its sixth unsuccessful wellin the country, denting hopes that anew multibillion barrel basin is wait-ing to be found in the Arctic region.

Cairn, which is close to concluding adeal to sell part of its stake in its Indian business so it can focus on Greenland,said yesterday the Delta-1 exploration well failed to find oil or gas.

Delta-1 is the third dry hole Cairnhas drilled this year, following its threeunsuccessful attempts to find oil off the coast of Greenland in 2010, illus-trating the difficulties in finding oil inthe vast, little explored region.

The company has two more rolls of

the dice in Greenland this year beforethe summer drilling season ends. Ithas already started drilling well AT2-1and will re-enter AT7-1, both on the Atammik block.

Shares drop asCairn turns upits sixth dryGreenland well

ENERGY▲


Tullow Oil provided an update on its Ghanaian well yesterday Picture: Reuters

Viktor Vekselberg, chairman of Renova Picture: Reuters Mikhail Fridman, chairman of Alfa group Picture: Reuters

BRITISH oil firm Tullow Oil said a welldrilled off the coast of Ghana con-firmed an extension to its Enyenra oilfield, bringing it closer to commercial-isation of another oil field in the West African country.

Tullow said yesterday that theEnyenra-3A appraisal well found oil ina column of 17m with data indicatingthat the oil was part of the same fieldas two wells drilled 6.5km and 14kmaway.

“This excellent result demonstratesthat we are close to declaring theEnyenra and Tweneboa development

commercial,” said exploration director Angus McCoss in a statement.

Tullow and its partners in Ghana,including Kosmos, helped transformthe country into an oil producer last

December when they put the massive Jubilee oil field onstream.

Earlier this week, Uganda said it wanted Tullow Oil, France’s Total andChinese group CNOOC to drop aclause shielding them from changes inpolicy before it would approve a $10bnoil project. Tullow has been waitingsince last year to finalise the agree-ment and start the project.

Tullow Oil confirmsextension of Ghana

Enyenra oil fieldBYHARRY BANKS

ENERGY▲

ANALYSIS l Tullow Oil

p


1,340

1,300

1,260

1,31628 Sept

8/4/2019 Cityam 2011-09-29



CREDIT Suisse has been tasked withhandling the sale of the private equity

unit of Axa, Europe’s second-largestinsurer.Despite rumours over the weekendthat the PE arm could be worth up to$1.5bn (£961m), a price of £200m to£400m is more realistic.

Credit Suisse yesterday declined toreveal which of its advisers will handlethe bidding process but they will beable to draw on the PE expertise of colleagues. The bank was one of threeadvisers appointed by CVC to adviseon a possible $5bn initial public offer-ing for Australian television networkNine Entertainment.Earlier this month Carlyle Group saidCredit Suisse would underwrite its

planned IPO, alongside JP Morganand Citigroup.Axa was also advised by Credit Suissein 2010 when it sold its UK life andpensions business to Resolution, CliveCowdery’s insurance buyout vehicle.

MEET THE ADVISERS

CREDIT

SUISSE

DominiqueSenequier, Axa Private Equitychief executive Picture: GETTY

Join today, and get at least£100* or improving your health & ftness.

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AXA hopes to spark an auction after itfinally confirmed it is interested inselling its private equity arm.

The French insurance group believes Axa Private Equity will go for between £200m and £400m.

Axa yesterday said it had begun astrategic review of its PE unit, which

was set up by Dominique Senequierin 1996 and had €20bn (£17.41bn) of assets under control at 30 June.

Possible bidders could include US

private equity giant KKR, which couldnot be contacted last night. City A.M.understands that Carlyle Group,another transatlantic firm viewed asa contender, is not considering mak-ing an offer.

Axa said its PE business had proved

to be a “remarkable success” and any deal would be structured to preserveits investment expertise.

Analysts have said a sale of the unit would likely be as a response to thetougher capital requirements underthe Solvency II rules aimed at bolster-ing the insurance industry’s financialstrength.

Axa is set tosell privateequity arm

MID-CAP broker Cenkos lookedunfazed by the tough climate for City securities houses yesterday as it post-ed an almost 200 per cent rise in pre-tax profit in the f irst half of the year.

Shares in Cenkos jumped morethan eight per cent as it said profits

were up 194 per cent to £5.3m com-pared to June 2010, after revenues

jumped 14 per cent to £28.5m.But its two smaller divisions, insti-

tutional equities and fund manage-ment, both posted revenue falls and

outgoing chief executive SimonMelling said it was keen to spread rev-enue more evenly across the group.

Cenkos said a raft of fundraisingsfor high-profile clients such ashaulage group Stobart, for which itraised £120m in May, had boosted itdespite “problematic markets”.

The broker warned that the “fragileand volatile equity markets” seen this

year had been caused “in part by thecontinued uncertainty surroundingthe European sovereign debt crisisand the weak state of the global eco-nomic recovery.”

Melling added that the outlook wasfor the market volatility seen since

July to go on.“We have seen increased economic

turmoil since the period ended caus-ing a slowdown in activity levels and Ianticipate that these will continue forsome time,” he said.

Cenkos raised £619m in the firsthalf, £117m less than a year ago, butadded two clients to its list.

It also raised £166m for Anthony Bolton’s Fidelity China SpecialSituations in February, less than a

year after raising it £460m.

LSE starts exclusive talksto take over LCH.Clearnet

THE LONDON Stock Exchange startedexclusive talks with LCH.Clearnet yes-terday as it closed in on a takeover of the sought-after clearing house.

The announcement confirmedthat the LSE is now in pole position to

buy LCH, Europe’s last independentclearing house, for about €1bn(£870m).

While both sides remain locked intalks, the likely acquisition would bea coup for LSE chief executive XavierRolet, handing him assets such asSwapClear, which clears interest rateswaps, and LCH’s huge over-the-counter derivatives trading arm.

The LSE said it was “pleased to con-firm that it has entered into exclusivediscussions with LCH.Clearnetregarding a potential transaction.

“Work is focused and on-going, with a view to moving towards anagreement, though at this stage therecan be no certainty that any transac-tion will result,” it said.

A takeover of LCH would boost theLSE’s small but growing TurquoiseDerivatives business launched this

year and would open new doors toexpand into the large and lucrativeOTC market. The LSE already owns anItalian clearing house, CC&G, after it

bought Borsa Italia in 2007.

Cenkos sees profit leap as itfundraises in spite of turmoil

BY PETER EDWARDS

PRIVATE EQUITY▲

CAPITAL MARKETS▲

ANALYSIS l Axa SA

€


10.00

9.00

8.00

10.0028 Sept

BYALISON LOCK

CAPITAL MARKETS▲

THE board of Charter Internationalcame under fire from a high-profileshareholder yesterday for allowing itsUK-based potential buyer Melrose to

walk away from the bid race.Long-term investor Schroders said

Charter’s decision to sell to US rivalColfax for £1.5bn was a short-termistmove that prioritised a cash payoutover long-term growth.

“We were supportive of the Melroseoffer as we never wished to be ‘cashedout’ of the long-term potential of theCharter businesses,” Schroders said.

“In our view it is disappointing thatthe opportunity was not taken by theCharter board and its advisors toengage with Melrose and, instead, tosolicit alternative approaches.”

BDO partner Alex White saidMelrose’s decision “has really put thespotlight on selling out for the highestprice, which is not always in share-

holders’ best interests”.But sources close to Charter said the

board stuck by its choice. The boardhas said it “secured very good value indifficult market conditions” and “atall times acted in the interests of the

whole shareholder base.”

Charter boardhit with shorttermism jibe

INDUSTRY▲

8/4/2019 Cityam 2011-09-29


PRINCESSLAUNCHES

OUR APPEALFOR AFRICACITY LEADERS met royalty at The Savoy on Tuesday night, at a dinner to mark anew partnership between City A.M. and an

African microfinance charity that aims toimprove the lives of thousands.

Guest of honour was HRH The PrincessRoyal, a patron of the Opportunity International (OI) charity, who toldguests including Vallares founder NatRothschild, Man Group’s chief executivePeter Clarke and Bank of America MerrillLynch’s European president JonathanMoulds about her experiences of work-ing for the cause in Ghana.

The charity focuses on Malawi, Tanzania, Ghana and Mozambique,

where up to eight per cent of the popula-tion are denied financial services,explained the charity’s chairman JohnFord, the former chief investment officerof T. Rowe Price International.

The appeal will publicly launch in thenext few weeks; in the meantime, LloydsBanking Group has already raised £1m asa long-term supporter of the fund, saidthe bank’s vice chairman of client cover-age Truett Tate. Graham Simpson, OI’sdirector of philanthropy, added: “Even asmall loan of £100 can give someone the

The Capitalist ’s man in Manchester, mean-ing staff have to programme their mobileto divert to the communal “bank” of land-lines on the desk they happen to be sittingnear at the time.

Of course, the BBC doesn’t have muchluck with technology. Shortly after enter-ing into a £2bn IT contract with Siemensin 2005, staff found they couldn’t makeinternational calls – something of a prob-lem for the World Service.

MIKE’S BIKES THERE is a reason Lord Mayor MichaelBear’s speechwriter is never ill – he

cycles to work every day.“Cyclists take on average ten fewer sick

days a year,” said Bear. “As I need to givearound 900 speeches by the end of my year in office, I am very relieved.”

The Lord Mayor gave this particularspeech at the launch of the City CycleStyle exhibition at the Royal Exchange, joined by London mayor Boris Johnson, whose Boris Bikes scheme was last week adopted by New York mayorMichael Bloomberg under therumoured name “Mike’s Bikes”.

hand-up they need to transform their business, and we want to support thou-sands of small entrepreneurs.”

COVER STORY THEY SAY you should never judge a book by its cover – but are staff at The Anthologist restaurant amusing them-selves by matching the hardback booksthey conceal diners’ bills inside to thecharacters of their clientele?

Surely not – but one recent City visi-tor still took offence when he was hand-ed Selected to Live, a book on how Godchanges lives by Johanna-RuthDobschiner (right). “I thought it was acompliment,” the waitress told The

Capitalist . “At least it didn’t say “you areabout to die”.”

NO-CALLS CENTRE THE BBC’s staff have put up animpressive show of resistance againstmoving up north to MediaCityUK inSalford – and now they have another

battle on their hands.In an attempt to deliver “maximum

value for licence fee payers” at BBC North,the corporation has axed individual land-lines for 70 per cent of its staff, givingthem a laptop and mobile phone they canuse to “hot-desk” between departments.

Only one problem – the mobile recep-tion is “virtually non-existent”, complains

The Princess Royal shared her experiences with the charity in Uganda Picture: Laura Lean/CITY A.M.

The Capitalist14 CITYA.M. 29 SEPTEMBER 2011

EDITED BY

HARRIET DENNYSGot A Story? [email protected] The Capitaliston Twitter: @dennysharriet

Above: Axing landlines isthe cost-effective solutionto “flexible working” at the BBC’s new Salford HQ

8/4/2019 Cityam 2011-09-29


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HARRY Potter publisher Bloomsbury says it will bring out-of-print titles“back from the dead” through a new digital-only imprint.

The publisher will focus on books whose English-language rights havereverted back to the author or theauthor’s estate.

Digital sales currently account foraround 10 per cent of Bloomsbury’sturnover, with the publisher expect-ing this to grow to 50 per cent by 2015.

The announcement is another indi-cation of the growing influence of ebooks, which looks set to continuetheir meteoric rise in light of therelease yesterday of Amazon’s new tablet computer.

The venture – called Bloomsbury Reader – has already signed upauthors including politicians AlanClark and Ted Heath, crime writerHRF Keating and Monica Dickens,great grand-daughter of Charles.

The new venture, however, will also

allow customers to order “print-on-demand” titles for around £13 – a sig-nificant premium on the £7 chargedfor ebooks. Bloomsbury’s digital offer-ing will receive a kick start whenHarry Potter author JK Rowlinglaunches the Pottermore website,through which she will sell her books

based on the boy-wizard.Stephanie Duncan, digital media

director at Bloomsbury Publishing,said: “If people read a book by anauthor, they suddenly want to readmore and that’s where this can fit in.”

Bloomsburyto raise booksfrom the dead

MAGAZINE publisher Future is con-sidering radical strategic options forits US business – which could includea possible sale – with torrid tradingthere expected to drag full year rev-enues down six per cent.

The specialist publisher, whichprints titles on activities including

video games and photography, expectssales in its core UK market to drop twoper cent.

The business, run by chief executiveStevie Spring, has been restructuringits operations to rely less heavily onprint media in favour of its successful

web-based business.Future, which has lost more than 60

per cent of its value in the last sixmonths, was trading flat yesterday.

Future considers sale of

its struggling US business

BY STEVE DINNEEN

PUBLISHING▲

BY STEVE DINNEEN

PUBLISHING▲

SOFTWARE firm Misys said demandfrom the Middle East and Asia is morethan compensating for growinguncertainty in financial markets.

The company, whose products areused by banks and firms dealing incapital markets, said revenue in itsfirst quarter grew four per cent,helped by sales of its next-generationplatforms such as BankFusion.

Misys growth

fuelled by AsiaBYSTEVE DINNEEN

TECHNOLOGY▲

ANALYSIS l Bloomsbury Publishing PLC

p

23 Sept 26 Sept 27 Sept 28 Sept

98

97

96

95

98.7528 Sept

Bloomsbury isbringing backout-of-print titlesthrough a new digital imprint for ebooks

8/4/2019 Cityam 2011-09-29


8/4/2019 Cityam 2011-09-29



BRITISH technology firm SmithsGroup reported profits aboveexpectations yesterday, helped by demand from the oil and gasindustry that helped offset weak orders from government agenciesfor equipment such as airportscanners.

Smiths, whose products rangefrom bomb detectors to medicaldevices and fuel hoses, said pre-tax profit rose 12 per cent to£486m on sales three per centhigher at £2.8bn for the year to 31

July. Analysts had forecast head-line pre-tax profit of about£454.7m on sales of £2.8bn.

The results were boosted by 14per cent sales growth at its JohnCrane unit, which makes mechan-ical seals for the oil and gas indus-try and accounts for 31 per cent of total sales.

But Smiths continued to be hit by slow sales at its detection unit, which makes airport scanners. The company first flagged fallingsales at the division last Novemberdue to a delay in large orders fromgovernment agencies looking tocut public spending.

The company said yesterday theeconomic outlook remaineduncertain.

“Continued pressures on gov-ernment spending, which particu-larly impacted Smiths Detection,

Medical and Interconnect are like-ly to continue to constrain rev-enue opportunities of some of our

businesses during fiscal 2012,”Smiths said.

Shares in Smiths closed up twoper cent at 969.5p yesterday, valu-ing the business at about £3.8bn.

Wary outlook fromSmiths as sales riseBYHARRY BANKS

ENGINEERING▲

THE infrastructure fund arm of proj-ect management group John Laing isplanning to raise up to £155.8mthrough a capital raising that couldpush it into the FTSE 250.

John Laing Infrastructure Fund(JLIF), which raised £270m in an initialpublic offering last November, said yes-terday that it would issue 148.4m new shares at 105p per share.

It will use the proceeds to invest innine new infrastructure projects, as

well as to reduce its debt and financefuture acquisitions.

“The proposed capital raise of £155m is another major milestone for

JLIF,” said fund chairman Paul Lester.“The proceeds of the issue will pre-dominantly be used for the acquisitionof a new portfolio of high quality assets from John Laing Group which

fit well within the investment criteriaof the company.”

The new assets will include schoolprojects in Edinburgh, Enfield andNewham, and a stake in the NorthEast Fire and Rescue service.

The rights issue, expected to be com-pleted in late October, is not under-

written and will only proceed if ordersfor more than 60m new shares arereceived.

John Laing plansFTSE push with

£155m rights issueBY ELIZABETH FOURNIER

INFRASTRUCTURE▲

ANALYST VIEWS: WHAT IS THE OUTLOOK FOR SMITHS GROUP?By Elizabeth Fournier

“

JONATHAN JACKSON |KILLIK & CO

The outlook remains weak,given the continued constraints ongovernment spending, and the groupwill continue to focus on efficiency...Management hopes to furtherimprove margins through R&D-driv-en product innovation, acquisitionsand further expanding intoemerging markets.

”

“

SCOTT CAGEHIN | NUMIS

The message is a consistentstory of margin improvement, whilststrong free cash generationsupports long term growth oppor-tunities through increased R&D andacquisitions. Smiths also remains abreak up story that should, eventu-ally, unlock value to sharehold-ers.

”

“

ANDREW WILSON | INVESTEC

Headlines are in line with our thinking and predictably cautious, the economic outlookremains uncertain and continued pressures on government spending are likely to constrainrevenue opportunities...We retain our buy recommendation believing this is a strong set of assets whichis currently fundamentally undervalued, underpinned by the potential for short-term value realisation.

”

ANALYSIS l Smiths Group PLC

p


980

960

940

920

900

969.5028 Sept

ANALYSIS l John Laing Infrastructure Fund Ltd

p


106.2

106.1

106.0

105.9

105.8

105.7

105.6

105.7528 Sept

JP MORGAN Cazenove is acting assponsor and sole bookrunner to theJohn Laing Infrastructure Fundrights issue, fielding a team thatincludes Patrick Magee, Christopher

Nicholls, William Simmonds andEdward Gibson-Watt.

Earlier this year, Magee advisedgreen energy supplier Eaga on its

sale to support services giantCarillion for £306m, and in 2010 hehelped UK car parts maker Tomkinswith its sale to buyout vehiclePinafore for close to £3bn.

Back in early 2009, he was alsopart of the JP Morgan team thatadvised British Energy Group on itshuge £12.5bn takeover by Frenchgroup EDF.

Magee also worked on JohnLaing Infrastructure Fund’s £270mfloat last year, when JP Morgan

Cazenove acted as global co-ordina-tor for the listing, as well as jointbookrunner alongside BarclaysCapital and RBS Hoare Govett.

MEET THE ADVISERS

PATRICK MAGEE

JP MORGANCAZENOVE

Paul Lester, thechairman of JILF,

said the new money will beused for investments. Pic: MichaTheiner / City A.M.

FTSE 250-listed engineering supportservices firm Babcock yesterday saidthat strong cash generation and goodtrading conditions in the last quarter

will help it hit profit targets. The firm said its good cash position

means it expects to pay down itsdebts to leave a debt to underlyingearnings ratio of less than two times

by the end of the financial year.Babcock’s order book stands at

around £12bn and it has a bidpipeline of £10bn, with the firmenjoying a “steady flow of contracts”,the company said in a pre-closeupdate.

It pointed out that it has won thelast three major contracts to beoffered at the Sellafield nuclear plantin the past year.

Babcock added that the VT busi-ness, which it acquired 18 months

ago, is now fully integrated into itsown operations.

The possible disposal of Babcock’sUS defence operations is still beingconsidered, the group said.

Babcock seesreduction in netdebt position

ENGINEERING▲

8/4/2019 Cityam 2011-09-29


THE HIGH street is braced for a fresh blow as quarterly rent demands aredue today and hard pressed retailersmust pay their landlords.

Thousands of firms will have to fork out three months’ rent in one go, withmany already struggling to make endsmeet in the tough consumer climate.

The payments total £3.4bn acrossthe UK and come as consumerdemand remains weak.

Pressure has been mounting onretailers, with the CBI revealing this

week that shop sales are slowing atthe fastest rate for two years, with a

balance of -15 per cent of retailersreporting slower turnover inSeptember.

The last quarterly rent demand in June triggered the biggest wave of administrations since the height of the recession, with Habitat, Moben’sowner Homeform, and Jane Normanamong those companies going bust.

Analysts expect the full impact of the latest rent demands to hit over

Christmas if the traditional salessurge does not meet expectations.

Meanwhile the number of retailersusing company voluntary arrange-ments (CVA), a form of insolvency pro-cedure to renegotiate their debts withlandlords, has jumped by almost aquarter in a year, according to a survey

by City law firm Wedlake Bell. The survey showed that 54 retail

businesses have undergone CVAs inthe 12 months to the end of June, upfrom 44 in the previous year.

Wedlake Bell predicts that today’squarterly rental deadline couldprompt a new wave of retail sectorCVAs as firms seek to cut their proper-ty costs in an attempt to save their

business.Edward Starling, head of business

recoveries at the company, said:“Retailers are faced with a toxic brew of woes caused by the credit crunch,sluggish summer trading and the nextquarter’s advance rental payment.

“Troubled retailers, along withsome creditors, see a CVA as a good

way to slash the business’s historicdebts.”

Shops bracedfor rent D-Day

The UK’s high streets have taken a battering Picture: REX

BY JOHN DUNNE

RETAIL▲

News18

8/4/2019 Cityam 2011-09-29



DOMINO’S Pizza has hailed the suc-cess of a new gourmet range andonline ordering growth for a rise insales. However, the firm’s shares fellalmost 10 per cent as its growthmissed targets.

The delivery firm has promoted itsnew gourmet pizzas via sponsorshipof ITV game show Red or Black.

Domino’s increased advertisingspending in the 13 weeks to 25September as it also signed a deal withChannel 5 to allow it to sell a BigBrother-designed pizza.

But the marketing investment paidoff as like-for-like sales in the UK increased 4.1 per cent in the quarter,up from 3.4 per cent in the first half of the year.

Domino’s said like-for-like sales forthe group were ahead 2.9 per cent astrading remained tough in Ireland, where same-store sales dropped 4.4 percent. The company said e-commercenow accounted for 46.6 per cent of UK

delivered sales in the 13-week period, while total online sales grew 36 percent to £45m.

Chief executive Chris Moore, whohas been with Domino’s for 21 yearsand is due to step down in December,said: “We are pleased to have had agood quarter’s trading and, althoughthe economy as a whole is still very tough, we have got exciting plans inplace for the rest of the year.”

Analysts at Peel Hunt downgradedthe firm to a “hold” in light of theupdate, but said the firm’s brand stillhas potential.

Domino’s in

sales lift onnew ranges

SABMiller in Foster’s boost

AUSTRALIA’S competition watchdog yesterday gave the green light to

SABMiller’s A$10bn (£6.3bn) friendly acquisition of brewer Foster’s Groupas expected, saying the bid would notlessen competition.

SABMiller and Fosters last week agreed on a sweetened A$9.9bntakeover deal.

“The proposed acquisition is notlikely to result in a substantial lessen-ing of competition for the supply of

beer,” said Rod Sims, chairman of the Australian Competition andConsumer Commission (ACCC).

The ACCC backing comes after theFoster’s board agreed to accept

SABMiller’s raised offer of A$5.10 plusa capital return and dividend last week, after a three-month battle by SABMiller to win over managementat the Australian brewer.

Key shareholders also backed theimproved deal, with only an outsidechance of a rival offer now posing athreat.

Foster’s chairman David Crawford

wrote to shareholders on Tuesday,saying the “significantly improvedoffer from SABMiller is a compellingproposal and represents the valueinherent in this iconic Australian

company.” The tone was in contrast to theresponse to the initial approach which was snubbed by the board, who said the firm was being undervalued.

SABMiller then approached share-holders directly before the sweeteneddeal was given the backing of theFoster’s board.

BY JOHN DUNNE

CONSUMER▲

BYHARRY BANKS

CONSUMER▲

PASSENGER numbers at Aer Lingusrose in the summer months, with yields also ahead of last year, the air-line said yesterday.

The airline said passenger volumesrose by 1.4 per cent in July and August, and yields increased by 4.6per cent. In September, yields and vol-umes are also ahead of 2010 figures,the airline said, and in the year to

date, passenger numbers had sta- bilised. Ancillary revenue per passen-

ger, which includes bag charges, was5.1 per cent higher than last year. Inthe year to date, figures were in line with 2010.

Last month, Aer Lingus said its booking profile into the fourth quar-ter of the year was strong, and itexpected sales growth in the secondhalf of a similar level in the first sixmonths of the year

Aer Lingus passengertraffic rose over summerAVIATION

▲

ANALYSIS l Dominos Pizza UK And IRL PLC

p


500

480

460

440

458.1028 Sept

LONDON hotels are set to have arecord 2012, according to the UK Hotels Forecast from accountancy firm Pricewaterhouse Coopers (PwC).

The report suggests that theOlympics, the FarnboroughInternational Air show and theQueen’s diamond jubilee will bringpeople flooding into the capital city, with occupancy set to hit record lev-els in the third quarter of next year.

PwC is predicting an occupancy of almost 92 per cent. Revenue peravailable room (revpar) is set to soarto 40.3 per cent, taking it to an aver-age of £167.86.

The analysis by PwC shows thathotels in the capital have enjoyedanother bumper summer this year with occupancy reaching 92 per centin July – only a marginal decline onthe record level seen in 2010, accord-ing to data from STR Global.

Liz Hall, head of leisure and hospi-tality at PwC said that new hotels inthe east of London were a welcomeaddition.

“London needed an injection of stylish new products and this hasstrengthened the capital’s appeal,putting parts of East London on thehotel map for the first time.”

In London the luxury hotel mar-ket has been performing strongly.

PwC: Londonhotels set forrecord 2012

LEISURE▲

Home Retail chief snubscalls for shop closures

HOME Retail Group bosss Terry Duddy is rejecting City pressure tocut back on stores as sales at its Argos outlets struggle.

He said he will not be closingstores following a market researchreport into the company’s perform-ance, claiming the wider economy was to blame rather than his strate-gy for the company.

“There were no eurekas. It was afull and hard check.

“It was a hard reflection of where

we were and it tells us that we believe that actually our strategy’sright.

“And we know that that isn’t nec-essarily what everybody wants tohear, because at this level of per-formance people are expecting a sortof transformation.”

Sales at Argos fell nearly ten percent in the first quarter and by near-ly nine per cent in the second.

Some analysts think he should cut back the 754 stores, but Duddy rejects this option since the compa-ny is not losing market share.

RETAIL▲

Terry Duddy says the retailer’s strategy will not be changed

8/4/2019 Cityam 2011-09-29


RUSSIA’S biggest mining company Norilsk Nickel yesterday revived its$4.5bn share buyback plan, which was shelved in February during a dis-pute with 25 per cent shareholderRusal.

Norilsk, which mines and pro-duces metals including nickel andpalladium, said it plans to acquire upto 14.7m shares at $306 each for com-mon shares and $30.66 for globaldepository receipts (GDRs), represent-

ing a 7.71 per cent stake in the firm.Norilsk’s US-listed GDR shares rose

more than six per cent to hit $22.27 yesterday afternoon while its Russianshares rose 7.7 per cent to 7,000 roubles.

Earlier this month, Rusal rejectedNorilsk’s offer to buy 15 per cent of its own shares back from Rusal for$8.75bn, and Norilsk will now look to buy from minority investors.

Shareholders have until 28October to sign up for the buyback. The stock will be acquired by Norilsk Nickel Investments, a wholly-ownedsubsidiary based in the VirginIslands.

Norilsk said it will fund the mas-sive buyback with a new $3.5bn loanfacility. Bank of New York Mellon,Citigroup and Russian investor serv-

ices outfit Computershare are all working with Norilsk on the scheme. The firm said Citi could providesome of the financing.

Analysts at Troika Dialog said yes-terday that the buyback is currently fully priced into Norilsk shares. They estimate an allocation ratio of around 13.1 per cent, assuming thatinvestors Trafigura, Interros andMetalloinvest all participate.

Rusal dropped a legal case to block the previous incarnation of the buyback scheme in June, but com-plained in August that the plans

were “in the interests of the manage-ment itself and of the Interros groupand do not meet the interests of allthe shareholders of the company”.

Norilsk did not yesterday rule outthe possibility of Rusal launching afresh attempt to block this round of buybacks.

Norilsk Nickelreinstates itsbuyback planBYMARION DAKERS

MINING▲

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LONDON-listed gold miner CentralRand Gold said yesterday it wouldtake an appeal against the cancella-tion of its mining rights to the highcourt in Pretoria.

Shares in the company recoveredslightly from sharp losses in Tuesday’s trading yesterday, after itsaid it would apply for interdictory

relief, which would allow it to con-tinue operations while any deci-sion over the licence is pending.

The South African ministry of mineral resources revoked CentralRand Gold’s mining licence on

Tuesday, meaning it had to imme-diately suspend its mining opera-tions near Johannesburg.

The ministry said Central RandGold had violated two conditionsof its permit, linked to the coun-try’s mining work programme andsocial labour plan.

“The company believes that ithas done all that it can to satisfy the department’s requirements with the financial resources at its

disposal and considering the con-siderable mining obstacles andoperational challenges it has faced,several of which have been beyondits control,” said Central Rand Gold yesterday.

AIM-listed shares in the company jumped to 0.27p yesterday beforeclosing flat at 0.22p. The firm’sSouth African shares also closedflat.

Central Rand Gold to appeal againstthe cancellation of its mining rights

BY ELIZABETH FOURNIER

MINING▲

St Modwensays tradingis on course

UK REGENERATION specialist StModwen Properties said yesterday it was making good progress in atough climate, as rental income,trading profits and cashflow allstayed in line with managementexpectations.

“We continue to make goodprogress in the year to date. Even inthis challenging market,” said BillOliver, chief executive of St Modwen.

“We have been able to driveincome throughout our portfolioand I am particularly encouraged by the continued resilience of ourretail assets.”

The company said it had contin-ued to perform well since first half

results on 5 July, and said its resi-dential business was “well posi-tioned” with 80 per cent of itsportfolio having either receivedplanning permission or allocations within local plans.

Oliver also said the company hadmade further valuation gains with-in its development portfolio,“through active management initia-tives and particularly by progressingsites through the planning process”.

In July, St Modwen posted a 40 percent rise in first-half profits for thesix months to 31 May, with profits of £374. on revenues of £61.4m

Its property valuations increased by £25m, and it saw a two per centimprovement in net rental income, which climbed to £17.8m comparedto £17.4m a year earlier.

BY ELIZABETH FOURNIER

PROPERTY▲

FIRST BOEING DREAMLINER LANDS IN JAPAN

ALL Nippon Airways’ first Boeing 787 Dreamliner touched down in Tokyo early yesterdaywith hundreds of aviation fans welcoming the carbon-composite plane that its US maker is

fielding, albeit three years late, to keep rival Airbus out of its best market. Japan remains a fortress for Boeing, which it dominates with a 90 per cent market share. Picture: REX

NEWS | IN BRIEF

Xchanging buys out AonTroubled outsourcing group Xchangingyesterday said it would pay £10.5m totake full control of its broking supportservices arm by buying out Aon’s 50per cent stake. Xchanging, which refi-nanced in August following a profitwarning in February, said its relation-ship with Aon would continue througha service contract, but that the dealwould help simplify its company struc-ture. On Tuesday, the firm admitted it

would take a £7.3m hit for windingdown its US operations.

Cineworld drops Spain dealCineworld yesterday dropped itstakeover of Spanish picture housegroup Cinesur, after six months of talks failed to produce a satisfactorydeal. Cineworld said in a statementthat the seller “had not been able tosatisfy certain pre-conditions to com-pletion within the agreed timescale”and that a deal was no longer in theinterests of shareholders. The firm saidwhen it announced the takeover in

April that Cinesur had around €18m inassets.

Goodmans maker gets offerAIM-listed electronic goods firmHarvard International confirmed yes-terday that it has received a takeoverapproach from Chinese technologygroup Chengdu Geeya Technology Co,sending its shares up 44 per cent to32.5p. The Hertfordshire-based firm,which supplies electronic goods andaccessories under the Goodmansbrand, urged its shareholders to “takeno action at this time” given that dis-

cussions are at an early stage and thatan offer might not emerge.


ANALYSIS l Central Rand Gold Ltd

p


0.50

0.40

0.30

0.20

0.2228 Sept

ANALYSIS l MMC Norilsk Nickel

RUB


7,200

7,000

6,800

6,600

6,400

6,200

7,000.0028 Sept

8/4/2019 Cityam 2011-09-29


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Pinsent MasonsThe international law firm hasstrengthened its banking and restruc-turing team by appointing partner

Vanessa Heap. Heap joins fromBerwin Leighton Paisner, where shewas a partner in its banking and capi-tal markets team.

Just-EatThe world’s largest online takeawayordering service has hired Daniel Read,previously chief product officer atAsk.com in California, as its new chief product officer.

RathbonesJames Codrington has joined RathboneInvestment Management’s Londoncharities team as an investment direc-tor. Codrington joins from Baring AssetManagement, where he led the firm’scharity operations.

Essar EnergyThe India-focused energy firm has

appointed Volker Schultz as chief exec-utive of its Essar Oil UK subsidiary,which includes the Stanlow Refinery.Schultz will join Essar Energy from BP,where he is currently head of refiningand marketing strategy and portfolio.

Drivers Jonas DeloitteShaun Dawson has been appointed asa research manager in the professionalservices firm’s London-based researchteam. Dawson previously worked as ananalytics manager for CoStar UK, pro-ducing commercial property marketreports and forecasts.

Investec Asset FinanceWesley Harfield has been appointed

as head of sales at Investec AssetFinance. Harfield joins the firm fromLombard Specialist Finance, where hewas managing director; prior to that,he worked at Barclays Asset andSales Finance.

StormHarbourPaulo Gray, former chief country offi-cer and head of markets for Portugalat Citigroup, has joined StormHarbouras a principal and managing director.He will be responsible for drivingStormHarbour’s client relationships inthe Portuguese and wider Iberianregion across fixed income sales andtrading, structuring and advisory, andcapital markets.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys

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ANALYSIS l BG

1,500

1,300

1,100

Jul Aug Sep

p

1,262.50

28 Sept

BG GROUPGoldman Sachs rates the natural gas company as a “buy” with a target priceof 1,760p and adds it to its conviction list. The broker says that BG’s share priceperformance this year has been lacklustre but that the outlook across its busi-ness has improved. Liquid natural gas pricing is up 77 per cent year-to-date,and the resource base in Brazil has doubled in size. JP Morgan expects BG’shigh-return, high-impact portfolio to underpin growth for the next decade.

ANALYSIS l Talktalk Telecom

145

135

125

Jul Aug Sep

p 126.8028 Sept

TALKTALKJP Morgan Cazenove rates the phone and broadband provider as “under-weight” and reduces its target price to 126p from 138p, after it reported neg-ative growth in broadband net adds for three consecutive quarters. Thebroker says that customer mix is more important than net adds, so is con-cerned that TalkTalk’s customer base is distilling towards the low end, losingpotentially higher average revenue per user customers.

ANALYSIS l Aberdeen Asset Management

230

210

190

170

Jul Aug Sep

p 176.0028 Sept

ABERDEEN ASSET MANAGEMENTCiti rates the asset manager as a “buy” with a target price of 220p, slightlyreduced from its previous target of 230p. The broker forecasts 35 per centgrowth in earning per share for full-year 2011, but only 2.5 per cent for 2012,but says that despite a challenging market backdrop, the group’s fund flowsand scope for cost management are reassuring. Aberdeen has indicated nochange to the c£200m non-compensation costs guidance it issued at results.

Kleinwort BensonMouhammed Choukeir has been appointed aschief investment officer at the private bank,effective from October. Choukeir moves fromMorgan Stanley, where he was head of multi-asset class investing in the wealth management

division. Prior to that, he was a fixed income andforeign exchange portfolio manager withMorgan Stanley, having originally joined the firmin 2002 after spending his early career in thefixed income division of Citigroup’s investmentbank in New York, London and Madrid.

BRITAIN’S top shares endedlower after a choppy session yesterday, with investors nerv-

ous ahead of an audit of Greece's finances to determine whether it has done enough tosecure a new batch of aid.

Integrated oils helped limit theFTSE 100’s losses, with BG Group up

3.4 per cent, grabbing the top spoton the leader board, boosted by aGoldman Sachs upgrade to “convic-tion buy” and bid speculation.

The UK benchmark closed down1.4 per cent, at 5,217.63, after rally-ing four per cent on Tuesday, its biggest one-day gain in 16 months. The index is down nearly 12 percent on the year.

A troika audit team from theEuropean Union, European CentralBank and IMF will begin talks in Athens on today on Greece’s plan todeepen budget cuts and raise new taxes.

Hedge fund manager Man Group was the biggest faller down almost25 per cent in heavy volume afterreporting a surge in client outflows.

FTSE weakens on anxietyahead of new Greek auditTHELONDONREPORT

4 Jul 22 Jul 11 Aug 21 Sep1 Sep

6,200

5,400

5,000

5,800

ANALYSIS l FTSE

5,217.6328 Sept

Wall St slides on weak commodities

C

OMMODITY related stocksdrove Wall Street lower yes-

terday as stiff declines inenergy and metals prices

underscored investor concernsabout global economic weaknessand Europe’s festering debt crisis.

The down draft, which comesafter three days of gains, put theS&P 500 on course for its worstquarter since the depths of thefinancial crisis in fourth quarterof 2008.

The S&P materials sector fell 3.7per cent as copper futures skidded

nearly seven per cent and Brentcrude resumed its downwardtrend, falling more than $2m(£1.3m) in afternoon trade. Energy stocks fell two per cent while goldprices fell 1.5 per cent.

In the wider market the Dow Jones industrial average dropped0.74 perc cent, to 11,107.32 and

Standard & Poor’s 500 Indexdropped 1.17 per cent to 1,161.67.

THENEWYORK REPORT

8/4/2019 Cityam 2011-09-29


22 The ForumCITYA.M. 29 SEPTEMBER 2011

T

HE call from President Jose ManuelBarroso and the EuropeanCommission to set up a European

Financial Transaction Tax (FTT) is mis-guided, not only because it is unlikely to

work, but because if it does, it would have achilling effect on growth and would damagethe UK’s competitiveness.

It is clear that Europe needs a relentlessfocus on growth but, by the Commission’sown official impact analysis, this tax coulddent long-run EU gross domestic product by more than €100bn.

The arguments that are used to supportan FTT are not compelling. Although it isright to have a domestic debate about

whether the financial services sector andindeed other industries are taxed propor-tionately, few tax experts believe that an FTT is the right solution.

EASY TO BEAT A transactions tax would be easily circum- vented by firms simply moving their tradesout of the EU. This would, of course, hit theUK hardest because London is by far thelargest financial market in the EU.

Transactions would be pushed out to com-petitor jurisdictions, like New York,Singapore and Hong Kong, damaging theUK’s long-term competitiveness as a leadingcentre for financial services companies.

This is no idle threat – when an FTT wasimplemented in Sweden in the 1980s, shareprices fell quickly and substantially, andhalf of all Swedish equity trading moved toLondon. The volume of bond trades fell by 85 per cent and futures trades by 98 percent. As a result, the Swedish governmenteliminated the tax, trading volumesresumed, and Sweden is now one of themost vociferous opponents of the tax.

The argument that the cost of the intro-duction of an FTT would somehow rest with

banks is not convincing – it would ultimate-ly be borne by businesses and investors. Theonus is on the private sector to drive eco-nomic recovery, but businesses that are try-

ing to grow and create jobs by raisingmoney from the markets would feel theimpact of an FTT because of the subsequent

increase in the cost of capital. This wouldhold back their growth potential.

HEAVY COSTS These costs would also fall heavily oninvestors, including consumers saving fortheir future, and those parts of the industry

which were less involved in the financial cri-sis, for example insurance firms, which donot pose a systemic risk.

As the potential costs for businesses andthe economy would be so high, particularly in the UK, the European Commission needsto explain what it hopes to achieve throughthe tax, particularly at a time when allefforts should be focused on growth.

The Commission cannot argue that thefinancial services sector does not make afair tax contribution. The UK’s financialservices industry accounts for around 10 percent of total economic output, 11 per cent of the UK’s total income tax, and 15 per cent of corporation tax. Additional tax is also col-lected from more than 1m people who work in the industry through employer nationalinsurance.

RISK REMAINSNor would the tax correct risky behaviourand financial instability in the sector.Robust regulation and supervision is amuch more effective means of achievingthis and, in any case, there is little evidencethat points to a link between transaction

volumes and financial instability.

Maybe then, this is just a revenue raisingexercise, aiming to tap the London markets.In which case they are likely to be disap-

pointed, as history suggests that transac-tions would move elsewhere.

The proposals for a Financial Transaction Tax do not stand up. At a time when weshould be focused on promoting growth,the introduction of such a tax would dam-age businesses and stifle economic recovery.

Neil Bentley is deputy director-general of the CBI.

When an FTT was set up inSweden, half of their equitytrading moved to London

The European Commission’splans for a Tobin Tax wouldthreaten the UK’s recovery

cityam.com/forum

NEIL BENTLEY

RICHARD REIDHEAD OF RESEARCH,

INTERNATIONAL CENTRE FOR

FINANCIAL REGULATION (ICFR)

AT THE end of June, no less an authori-ty than the president of the ECB Jean-Claude Trichet expressed his concernsover any European financial transac-

tions tax, saying: “I call for great, great pru-dence in introducing something which is notdone at a global level... Let’s be sure we don’t dosomething we might regret one day… If certaintransactions are considerably more costly inEurope than in other parts of the world, theywill be done overseas... I understand it appealsto some observers. But if we are not satisfiedwith the overall functioning of our financial sys-tem, is the right thing to do to put sand in themachine?”

It may have some popular appeal to politi-cians seeking to justify policy initiatives inother areas, but the likelihood of any interna-tional agreement on financial transactionstaxes is very remote. Emerging countries inparticular are not keen. To go-it-alone inEurope or the euro area would only putgreater pressure on the region’s global com-petitiveness and may even increase the costsof financial intermediation to consumers andbusinesses. Is that really the desired outcome?

8/4/2019 Cityam 2011-09-29


8/4/2019 Cityam 2011-09-29


Rising sun set

to shine againInvestors have been ignoring Japan but nowthere could be bargains, writes Philip Salter

THERE is a strong argument that

Japanese equities are undervalued. Although the macro situationremains bleak, this doesn’t preclude

companies from turning a profit – particu-larly on the back of Chinese demand.

A GOOD DEALBen Seager Scott of Bestinvest says “Japan islooking like a fairly attractive investmentopportunity at the moment, with cheap

valuations on a historic basis and corporateearnings that continue to be solid.” June

Yon-Kim, portfolio manager of the FAST Japan Fund, explains: “The price-to-book ratio for the Japanese market currently stands at around one times, with morethan 60 per cent of the benchmark uni-

verse trading below book value.” He saysthat with a forward price-to-earnings ratioof 13 times, versus a 20-year average of 30times – “Japan offers attractive upside oncethe market starts to discount a V-shapedrecovery through fiscal 2012.”

“The topix index, a barometer for Japanese equities, is currently tradingaround the market lows of 2003,” explainsSimon Finch of Ashburton, “a low whichsignalled the start of the most successful

bull market in Japan since the heady daysof the late 1980s.” Finch thinks “it wouldtherefore be wise for investors to reassesstheir current underweight to Japan.”

STOCKING UPIf you are bullish on Japanese equities as a

whole and want to keep investing costs to aminimum, Jason Whitcombe of EvolveFinancial Planning recommends the low-cost Japanese equity index tracker fundsfrom Vanguard, Legal & General and HSBC.For those looking to discriminate there areplenty to choose from.

Yon-Kim says his stock selection remainsfocused on oversold large-cap stocks withstrong balance sheets and highly cash-gen-erative business models – capitalising onrecent market sell-offs to add weight in thechemicals, oil, coal, and mining sectors. Henotes Japan Petroleum Exploration is thecheapest oil company in the world on anenterprise value/reserve basis. Yon-Kim alsofavours major banks including SumitomoMitsui Trust and Mitsubishi UFJ Financial,

which are trading below book value. Heremains underweight in defensive stocks

in the power utilities, pharmaceuticals andfoods sectors, as he thinks they continue to

offer little in the way of relative valuations.Senior portfolio manager Adrian Hickey

of Pictet’s Japanese Equity Opportunitiesfund thinks it’s a “stock pickers market”,having fallen off analysts’ radars. He likes

Arnest One, the Japanese low-cost house- builder, which is currently trading on aprice-to-earnings ratio of four. With houseprices coming down, he thinks the coun-try’s huge private savings could find their

way into new homes. He says Arnest One’s

competition is limited and notes that thegross margins on their condominiums arearound 30 per cent.

This year’s Japanese earthquake has over-turned Japan’s plan for nuclear to meet 50per cent of its energy needs. As such,Hickey likes the prospects for the liquefiednatural gas (LNG) market, particularly thecompany Chiyoda, which is a leading play-er. The earthquake has also highlighted theneed for energy conservation andHoshizaki has delivered a new commercialrefrigerator that is 40 per cent more effi-cient than its previous model. Demand formore efficient refrigeration is not justcoming from Japan, as Chinese companieslook to cut energy costs.

Whichever fund you choose, Richard Troue of Hargreaves Lansdown advisesinvestors to consider currency movements.He says “there has been much debate overthe strength of the Japanese yen and

whether it is set to weaken significantly against other currencies.” He says that onthe face of it this would not be good for for-eign investors, although he also points outthat many argue that any impact of the

yen weakening could be offset by strongperformance by export companies, benefit-ing from a weaker yen. Either way, forinvestors wanting to avoid currency risk,

Troue says look for funds that hedge outcurrency exposure or offer a currency hedged share class.

MACRO DISCOUNTGrowing public sector debt, schizophrenicmonetary policy and timid domesticinvestors have weighed on Japan through-out its lost decades. Bestinvest’s Seagernotes the broad economic picture for Japancontinues to look bleak, with GDP data inthe second quarter revised down, back inline with expectations. Seager thinks “thelong-term domestic situation remains dire,

with high levels of government debt andan expensive currency that is expected to

depreciate in the long term.” There is cer-tainly no shortage of pessimism on thecountry’s future. However, Seager remains

bullish on equities: “Many companies have been able to adapt, moving operations andoperating costs overseas.” Also, slowingexports to the West are being replaced by increased demand from the emergingaffluent classes in emerging Asia.” Forexample, Hikey points to MusashiSeimitsu, a Honda affiliate in the motor-

bike industry that gets the bulk of its earn-ings from Brazil and Indonesia.

Statistics from Japan’s ministry of inter-nal affairs and communications showsthat Japan has become increasingly less

reliant on the stagnant over-indebted US.In 2001 ¥3.7 trillion of exports went to

China, while in 2010 this had reached ¥13.4 trillion. Over the same period Japan’strade with the US declined from ¥14.7 tril-lion to ¥10.3 trillion.

There is no doubting that Japanese equi-ties are cheap. Troue thinks “with valua-tions low this could be a good opportunity for investors to pick up companies withgood long-term prospects at bargain base-ment prices.” Although he cautions that“just because the Japanese market is cur-rently cheap it doesn’t mean it can’t getcheaper.” Many seasoned and otherwisesuccessful investors have been predictingthat Japanese equities will bounce back fora while now – it hasn’t happened yet, but

Japan’s sun could be about to rise oncemore.

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Economicallyreckless taxchampioned

THOUGH most ought to have ceased to

be surprised by off-the-wall Eurozonepolicy announcements and scape-goating speeches, you can always rely

on European ministers to pull somethingout of the bag. And yesterday, Jose ManuelBarroso, the European Commission presi-dent, did not disappoint. As the Eurozonequakes in its boots at the prospect of Greek

default and a number of banks could even-tually go the way of Lehman Brothers,Barroso refused to be dragged into trivialmatters such as trying to address the struc-tural flaws in the Eurozone model. Instead,he recycled the idea of imposing a tax onEuropean financial transactions.

In a speech to the European Commission yesterday, Barroso justified his support of the tax by saying that “it’s a question of fair-ness” and that “it is time for the financialsector to make a contribution back to socie-ty.” Leaving aside the dubious logic behind

Barroso’s proposed levy would hitFX sector hard, says Craig Drake

The tax would kill off one of the sectorsthat pays Barroso’s€300,000 salary

Pictures: REUTERSthis statement or the enormous levels of corporation tax, national insurance contri-

butions, and income tax that is paid by thefinancial sector in order to allow Europeanpublic servants to live the lifestyles to

which they have become accustomed, afinancial transactions tax is a shortsighted,unworkable and financially reckless pro-posal.

It is also a proposal that would hit theUK forex sector and the City as a whole par-ticularly hard. The UK is home to thelargest share of the global forex tradingmarket – a market with a £2.5 trillion aver-age daily turnover. “The proposed financialtransaction tax will damage the competi-tiveness of Europe, hinder economic recov-ery and increase the level of risk in the

financial system,” says Alex McDonald,chief executive of the Wholesale MarketBrokers’ Association. “It is an expensiveand counter-productive attempt at achiev-ing poorly defined objectives.”

UNWORKABLE AND WRONG According to Chris Sanger, head of tax poli-cy at Ernst and Young: “There are many questions left unanswered by the proposal,such as how the commission could ensurethat costs would not be passed directly onto end customers in Europe, or whetherthe tax would in fact create an off-shoreindustry, driving firms outside of regulato-ry control.”

Some who defend the tax – includingthe coalition, which opposes the EU pro-

posal – add the caveat that it would have to be implemented on a global scale. This would require the likes of Canada, Britain,the United States, Australia and China tocome to a multi-lateral agreement to com-

mit self-mutilation on their owneconomies. The chances of that happeningare slim to none.

Barroso’s support of this damaging taxcould be written off as political posturing –a proposal that will never be implemented

but ticks all the right banker bashing boxesto keep his Commission underlings happy.But the financial transactions tax has beenproposed with increasing frequency of late– a very dangerous development for theUK’s forex institutions and the City as a

whole.

8/4/2019 Cityam 2011-09-29


Why cloud computing is idealfor any economic climate.

Turn to page 3

Making the moveWhat is involved inmigrating to the cloud?

Knowing the risksDeciding whether thepros outweigh the cons

Ask the expertsWhy the cloud mightbe right for you

AN INDEPENDENT INSERT BY MEDIAPLANET

CLOUD COMPUTING

No. 1/ Sep ’11

Experience: Jane Moran, Global CIO at Thomson Reuters discusses theirmove to the cloud, and what it has meant for their company

UNDERSTAND THEBENEFITS

P H O T O : M O J O S O L O / T H O M S O N R E U T E R S

8/4/2019 Cityam 2011-09-29


2 · SEPTEMBER 2011 AN INDEPENDENT INSERT BY MEDIAPLANET

M

ost people arenow au ait

with the poten-tial o cloud. Inthe main, that’sscalable com-puting, deliv-

ered on a utility-style ‘pay as you go’pricing model, which can provideincreased collaboration, remote

working unctionality and reducedinrastructure costs.

So, i you have a high volume o customer throughput on your ap-plications over a concentrated tim-escale, you don’t have to shell out tohave the computer power on-site tohandle that demand and then rot orthe rest o the time. What’s more, all

businesses c an, ostensibly, competeon an even ooting, as start-up costsare dramatically reduced and theyaccess the same acilities.

Solutions

1 UK businesses are certainlytaking note. When The Cloud

Circle began, in 2009, as the UK’sfirst independent business and IT-ocussed cloud computing commu-nity, 57 per cent o enterprises saidthey did not know enough about

cloud computing or were not readyto commit to it. Two years on, ournewly published 1st IndustryTrends Report reveals that 77 percent o organisations are imple-menting, testing, or actively re-searching solutions.

But it’s by no means a ‘no brain-er’ or everyone just yet. Issuesneed ironing out, with security topo our members’ concerns, eventhough suppliers maintain that,or small enterprises at least, pub-lic clouds ofer ar better securitythan anything they will be able toprovide or themselves. Neverthe-less, placing one’s ate in the handso another is never the most com-ortable o things.

Reliability

2There’s also the reliability is-sue. The very public outages

sufered by Google, Microsot and Amazon recently won’t have aided

consumer confidence. And cost re-mains an issue, too. Many have re-marked that though cost ecien-cies are promised,the actual pricingstructures can be impenetrable;meaning the total cost o ownershipand ROI is dicult to calculate. As

CHALLENGES

Head in the clouds,feet on the ground

Cloud could finally allow enterprises to stop spending time on keepingthe lights turned on and start focussing on innovative ways to operate.But there are bumps in the road which need to be smoothed out saysEmma Taylor, founder of The Cloud Circle

‘For small andmedium sizedbusinesses, it’soften far better touse cloud technologyas it is an operatingexpense and not acapital expense’

James Caan

Former dragon onBBC’sDragon’s Den , businessentrepreneur andfounder and CEO of Hamilton Bradshaw

WE RECOMMEND

PAGE 9

CLOUD COMPUTING, 1ST EDITION,SEPTEMBER 2011

Managing Director: Willem De GeerEditorial Manager: Faye GodfreyBusiness Development Manager:Hannah Butler

Responsible for this issue:Project Manager: Gordon McCrackenPhone: 020 7665 4409E-mail:[email protected]

Distributed with: City AM,September 2011Print: City AM

Mediaplanet contact information:Phone: 020 7665 4400Fax: 020 7665 4419

E-mail: [email protected]

We make our readers succeed!

Mediaplanet’s business is to createnew customers for our advertisers byproviding readers with high-quality editorialcontent that motivates them to act.

we all know, accountants, inves-tors and board members like cer-tainty when it comes to cash.

However, suppliers oten main-tain that the issues are over-played. They say people present

barriers to guard against a shitin control, a reduction in headcount, or less money in the capi-tal budget as the IT spend shitsto an operational expense.

Buzzword

3The cloud is certainly a buzz word at the moment. But here

at The Cloud Circle we’re not gettingcarried away. There won’t be a totaloverthrow o the current status quo– our members told us that in five

years they expect to see an evensplit between on-premise andcloud-based solutions.

It does, however, ofer huge op-portunity or streamlining oper-ations and it opens doors to unc-

tionality which simply could nothave been achieved beore. The po-tential o what could be achievedthrough this is too great or it tojust be a flash in the pan. Some

businesses won’t need it; or oth-ers, it could make or break them.

Emma TaylorFounder, The Cloud Circle

Get organised

1The challenge with the cloudis oten an organisational

one – concerning the culture within the enterprise – as muchas it is a technical one. In our In-dustry Trends Survey, 35 per cento IT-based respondents high-lighted ‘lack o management un-derstanding’ as a concern.

Analyse your needs

2No one is saying the cloud isa magic bullet. It’s not a solu-

tion in itsel – it has to be aligned with a business need.

MY BEST TIPS

8/4/2019 Cityam 2011-09-29


8/4/2019 Cityam 2011-09-29



You’ve made the decision to move

some of your business to thecloud — but that’s the easy part.How you get your applicationsinto the cloud is another matterentirely and, potentially, a tech-nical can of worms.

Richard Watson, analyst at in-formation technology researchand advisory company, Gartner,is the author of a report calledMigrating Applications to theCloud, which aims to tackle thisproblem head on.

“There’s a lot of informationfrom cloud vendors about thefacilities they offer,” he says.“But when it comes to migrat-ing applications, IT teams startscratching their heads and won-

dering how to go about it.”In his report, Watson identi-

fies five alternatives for compa-nies looking to operate from acloud platform: they can Rehost,Refactor, Revise, Rebuild or Re-place applications.

Rehost and Refactor

“Rehosting is a little like a fork-lift,” says Watson. “You’re pick-ing up an existing applicationand setting it down in anoth-er hardware environment.” Thistakes place on an Infrastructureas a Service (IaaS) model — an en-

vironment familiar to IT teams— and is the easiest option for a

company to take. “However, theadvantage is also the drawback,”says Watson. “Because you arenot changing the structure of theapplication to run more effec-tively on the cloud, you are nottaking full advantage of the ar-chitecture of the cloud.”

If you Refactor an applica-tion — on a Platform as a Ser-

vice (PaaS) model — it meansthat some changes may have to

be made to the software’s code.“It does depend on the individualapplication,” says Richard, “but,typically, while it will remain

relatively intact, you will need totweak it to run it in the cloud.”

Revise and Rebuild

A widescale change to make an ap-plication more ‘cloud-friendly’ isknown in the report as the ‘Revise’option.“This is the most complicat-ed option,” says Watson.“Yet it’s alsothe one that is,potentially,going to

get you the most benefit from mov-ing your apps to the cloud. Howev-er,you shouldn’t underestimate theamount of highly skilled softwarearchitecture work involved.”

If you have an out-of-date ap-plication that doesn’t work well,

you can retire it and Rebuild it on aPlatform as a Service (Paas) model.

Finally, there is the Replace alter-native, using software delivered onthe web in a Software as a Service(SaaS) model. This is a rent (ratherthan buy or build) option, the ma-jor advantage of which is that you

won’t need a development team tohelp you to use it.

“The drawback is th at you don’thave control over the applica-

tion,” says Watson. “You have toaccept the functionality it has —and work your business process-es around it.”

Richard Watson

Analyst at Gartnerand author

of Migrating Applications to theCloud report

MOVING APPS

TO THE CLOUDQuestion: How do I migrate

my applications to the cloud? Answer: The choices facing

your company are varied — asRichard Watson, the author of a recent report on CloudComputing, makes clear

NEWS

TONY GREENWAY

[email protected]

8/4/2019 Cityam 2011-09-29


SEPTEMBER 2011 · 5 AN INDEPENDENT INSERT BY MEDIAPLANET

“There is no one reason or a busi-ness to migrate its applications tothe cloud,” says Gartner’s Richard

Watson. “Diferent organisations

have diferent reasons because theyhave diferent goals.”O course, the perceived wisdom

is that cloud adoption has increasedamong businesses because it reduc-es costs: but,says Richard,that’s on-ly one small part o the story.

Agility“When I speak to clients who have

begun to migrate their IT work-loads into the cloud,” he says,“they tell me they are looking or

business agility and the potentialto deliver new services more rap-idly to users.”

When moving to a cloud plat-orm, companies can Rehost, Reac-tor, Revise, Rebuild or Replace ap-

plications, as outlined on page 4.Some o these options are compli-cated to implement, however, andstill require the expertise o highlyskilled sotware architects. This al-so makes them expensive.

Yet some o the easier options

may not be best or your business.So how does an SME determine

which option to take?

Constraints“It depends on an individual com-pany’s goals,” says Watson. “For ex-ample, does it want to preserve cap-ital? Or leverage existing invest-ments? Or provide wider access toconsumers on mobile devices?

“A business also has to look at theconstraints it aces. Does it have a

sotware development team? Doesthat team have operational expe-rience in running cloud systems?

And does an application a busi-ness owns contain core intellec-tual property? I it does, a compa-ny isn’t likely to throw it away andrebuild it or replace it with a Sot-

ware as a Service (SaaS) solution.”Because o the number o ven-

dors crowding the market, Watsonadmits that choosing a cloud mi-gration path isn’t easy. “But, hope-ully, ocussing on the five optionsfirst clears the air a little bit,” hesays. “There are undoubtedly ven-dors and services out there thatcan help you achieve your aims,ultimately; but thinking through

the five possible ways to migrateapps may help a business think:‘What do we want to achieve bymoving to the cloud?’”

Choosing the

best route for your business

TONY GREENWAY

[email protected]

How does a firm assesswhich of the five applicationmigration options to take:Rehost, Refactor, Revise,Rebuild or Replace? Itdepends on your individualbusiness goals andconstraints

MIGRATING TO THE CLOUD

The ways in which acompany moves to the cloud

will depend on their goals,

and will vary greatly frombusiness to business

PHOTO: ZAHRADALES/SHUTTERSTOCK

NEWS IN BRIEF

Cloud ‘top business trend’

Whitehall embraces

the cloud

In its IT strategy, published in

March, the Government talkedabout its intention to ‘push ahead

with its agenda or data centre,network,sotware and asset con-solidation and the shit towardscloud computing.’ The Govern-ment is set to publish its CloudComputing Strategy in October.

Business sotware firm Cordys

says that,according to research itcarried out at the Cloud World Fo-rum in London, the overwhelm-ing majority o UK businesses

believe that the move to cloud isone o the most important trendsin IT over the next ew years. O those asked, cloud was a pivotalissue or 59 per cent.

Last month, IBM announced

a new hybrid cloud solution. Ac-cording to analysts, say IBM, 39per cent o cloud users report thathybrid cloud is now part o theirstrategy — and the number is ex-

pected to increase to 61 per centin the near uture.

Is the future hybrid?

TONY GREENWAY

[email protected]

8/4/2019 Cityam 2011-09-29



Data management:easier from the cloud?

Increasing numbers o companiesare moving to the cloud. But whatare their reasons or doing so?

Tim Cowen is Partner at interna-tional business law firm Sidley Aus-tin and author o a recent ResPublicareport called Capturing the Cloud.

“Initially, it was thought thatfirms were adopting cloud solutions

because o the cost-savings bene-fits,” he says. “However, a Cloud In-dustry Forum survey recently dem-onstrated that the adoption rate isgoing up because cloud increases acustomer’s agility.”

Indeed, cloud can ofer a new wayto manage data — one which vastlyincreases productivity.

“Traditionally, a firm may have anumber o business processes that de-pend on computing,” says Cowen,“butits computing power is housed in a

building that is locked at night.That’sgood rom a security point o view; butit’s not good or productivity.

“Say, however, that you run youremail system rom a cloud service.

This is a shared resource that is a)cheap and b) accessible all the time.Because,in the end,a business needsoperational efectiveness to do well.”

AccessLogging into the cloud — where all

your data and design tools are wait-ing or you — means that you don’tneed to have applications cloggingup space on your own in-house sys-tems. It also means that staf can

access this data rom any computer.“People are now logging on in public

places such as cofee shops,” says Co- wen.“They’re not going there just be-cause o the cofee,either.They’re go-ing because o the ree Wi-Fi access.”

Cowen also points out that i acompany has heavier workloads atcertain times o the month or year,then cloud allows users to scaleup and down as necessary. “I youhave a lot o data to process at short

notice, you can get more capacityon a pay-as-you-go basis,” he says.“This ability to turn power up anddown is very attractive to SMEs.”

Search A business may have three com-puters in its existing deployment— but a cloud provider will havethousands. Thereore, says Cowen,i something goes wrong, a compa-ny using cloud can switch its dataprocessing to a diferent server. “Italso means you can process your da-ta more quickly,” he says.

Plus, cloud ofers efective search— although it pays to choose a pro-

vider wisely. Ask how they store thedata on their system and what secu-

rity measures they have in place toensure that your inormation can-not be accessed by others.

In act, data security in the cloudis still the main business concern;

but Tim Cowen believes this ismisplaced to a degree. “The most

well-known data lapses have been because laptops have been let inthe back o taxis, or because discsand data sticks have been sent inthe post and gone astray,” he says.“In the cloud that c an’t happen, asthe data is not transported in thephysical world, and in the elec-tronic world the cloud service mayalso be encrypte d.”

TONY GREENWAY

[email protected]

Question: Is managingcorporate data easier from acloud-based platform?

Answer: It can be, becausecloud offers instant dataaccess from any location withan internet connection, whilegiving SMEs the option to scalecapacity up or down

NEW POSSIBILITIESMoving to the cloud canallow you to access andmanage your data fromalmost anywherePHOTO: YURI ARCURS/SHUTTERSTOCK

NEWS

SHOWCASE

QUESTION & ANSWER

Why did you move Hamil-

ton Bradshaw to the cloud?

! We have recently expandedHamilton Bradshaw to in-

clude an advisory division,Hamilton Bradshaw VenturePartners, that ocuses on sup-porting growing SMEs aroundthe country. As a consequence,

we now have members o our or-ganisation operating in loca-tions outside o London thatneed to collaborate with ourhead oce in real time. Cloudservices help acilitate this in acost-efective way.

What kind of cloud do

you use?

! We use a cloud-based ilesharing tool and a cloud

-based CRM system.

What kinds of benefits

do you see in the cloud?

Has it saved Hamilton

Bradshaw money?

! The use o the cloud has al-lowed us to quickly expand

our operating scope in a waythat was previously not viable.For small and medium sized

businesses, it’s oten ar betterto use cloud technology as it isan operating expense and not acapital expense.

Can you give an example

of what the cloud allows

your company to do that it

couldn’t do before?

!Manage a wider regional

workorce at no extra cost.It also helps us collaborate to ac-cess and update client inorma-tion while on site, via mobile de-

vices. We have had unanimouslypositive eedback rom our cli-ents on our delivery speed andcustomer service, so it has actu-ally translated into a competi-tive advantage.

What tips would you give

any entrepreneur thinking

of moving their business to

the cloud?

!Generally, I think it’sabout researching the

companies on the market, get-ting recommendations romcolleagues and other businesspeople, and consulting trustedinormation sources.

James Caan,

Businessentrepreneurand founder andCEO of HamiltonBradshaw

‘People arenow loggingon in publicplaces such ascoffee shops’Tim CowenPartner at Sidley Austin

FACTS

A 2009 study by market intel-ligence firm IDC notes that theshift to cloud computing hasbeen calculated as contributingUS $800billion in net new busi-ness revenues in 52 countries by2013. SOURCE: Capturing theCloud, ResPublica

Microsoft’s Cloud Adoption

Study (March 2011) found that39 per cent of SMEs expect to

be paying for one or more cloudservices within three years.

The Microsoft study also foundthat SMEs adopting Software as aservice (SaaS) and Infrastructureas a Service (IaaS) are larger, moregrowth-oriented and more interest-ed in additional services, such asunified communications.

SOURCE: MICROSOFT

8/4/2019 Cityam 2011-09-29


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INSPIRATION

Making the rightconnection

STORMY WEATHER?

There may be issues withconnectivity, so it isimportant that you choosethe right networkPHOTO: MICHAEL D BROWN/SHUTTERSTOCK

When you’re thinking about shit-ing to the cloud, you also have tothink about good connectivity. Forpeace o mind — and uninterruptedaccess to your data — you need a re-silient network.

“That’s right,” says Stephen Simp-son, UK Cloud Lead at business and

technology service company Logica.“But i you have a private cloud, youexpect the service provider to takecare o that side o things or you — al-though you do pay more money or it.

“For example, one o our clientshad many data centres which we’veconsolidated to two, with dual net-

works rom diferent suppliers run-ning between them. That’s a robustsystem. But when you’re talkingabout the public cloud… you do haveto dance a lot more.”

Major examples o public cloudoutage — such as Amazon and Mi-crosot — have made headlines this

year. Many customers can be afect-ed by such outages; but others, says

Simpson, will have the oresight toengineer a solution that ensures

their connectivity in a crisis. Yes,their perormance may be afect-ed — but they’ll still be able to runtheir businesses.

AvailabilityThen there are connectivity issuessurrounding so-called road warri-ors. These are staf who may be sit-ting in, say, a cofee shop, wanting tohook up to their oce in the cloud

— but to do so they’ll need access toa strong signal.

“They will,but that’s the ‘back end’o communications,” argues Simp-son. “That’s an issue about how youconnect to services hosted on the

cloud, and nothing to do with thecloud itsel. People have long beenable to sit in caes and log-in to work

with their laptops or mobile devices— so that situation hasn’t changed.”

O course signal availability will

vary, depending on where you are.“I you’re in the sticks and don’thave a 3G connection, that’s anobvious problem,” agrees Simp-son. “But it can even be a problemin the city where you’re sharinghighly solicited resources.”

SecurityFor Simpson, there are various is-sues surrounding connectivitythat need to be resolved. “Cost, orexample,” he says. “With privatecloud it can be expensive.

“Once you get into the public cloud, you can experience latency issues i your data has to do ‘round trips’ viasatellites across vast distances.”

Then there are issues around

compliance: data privacy rulesand data sovereignty, or example.

Plus there’s connectivity se-curity. “All o the classic securitymodels isolate people and appli-cations,” says Simpson, “but we’vegot to understand a person’s con-text in order to give them diferentrights o access. We have to ask:

who are they? What are they do-ing? What device are they using?

And, crucially, where are they? I they’re in the oce or at home,that’s one thing… but i they’resitting in a caé in Baghdad youmight want to scale their author-ity to act back.”

Question: What are some

of the issues surroundingcloud connectivity?

Answer: User perceptions,cost, security, latency issuesand compliance problems,to name a few, says StephenSimpson, UK Cloud Leadat Logica

TONY GREENWAY

[email protected]

SHOWCASE

‘If you’re inthe sticks anddon’t have a3G connection,that’s an obviousproblem’Stephen SimpsonUK Cloud Lead, Logica

FACTS

In August , the BBC revealed

the results of its 3G survey, to

provide a true picture of 3G

mobile data network coverage

in the UK.

More than 44,000 people

took part in the survey. The BBC

findings concluded that “over-

all, people are getting 3G about

three quarters of the time.”

The BBC

also noted: “Whilemost of the big cities are well

served by 3G, it can be a real

challenge getting a decent con-

nection elsewhere.”

As a result, the Cloud In-

dustry Forum (CIF) has called

for ‘significant improvements to

3G coverage’ noting that old-

er 2G technology is typically

around 10 times slower than 3G

‘mobile broadband’.

SOURCE: BBC AND CIF

QUESTION & ANSWER

If a company is looking

to shift to the cloud, what

should it do first?

!Scott McNealy amouslysaid: ‘The network is the

computer’ — and so it ollowsthat the network is critical tocloud computing. Without asolid, reliable and resilient LANand WAN, your network doesn’tstand a chance. They both existoutside o your business andcan’t unction i your networkails; so beore you consider de-ploying cloud solutions, youshould ensure your network isIP-ready,secure and robust.

Companies are concerned

about data security in the

cloud. So how can compa-

nies make sure their data is

in good hands?

! When it comes to cloudcomputing, security is one

o the biggest barriers to adop-tion. Most concerns ocus onthe location and protection o the data itsel, but businessesshould also have a back-up planin mind in the event that acloud provider ails, isinfiltrated, or destroyedfinancially. Ensure your ITteam is ready or the change inapproach and shit in levels o control and put together a mit-igation plan that can be imple-mented should your cloud so-lution malunction or ail.

Cloud appears to be ‘the

next big thing’. Is it inevitable

that it will go ‘mainstream’?

! While it’s certainly gath-ering pace, the move to

cloud is not inevitable and it’simportant to balance the hype

with a sense o pragmatism. While there are significantcost, eiciency and flexibility

benefits to cloud solutions, businesses shouldn’t necessar-ily decline a dedicated non-cloud oer; many services canstill be ‘hosted’ o premise,

but may not cost as much.

Ken Johnson,Product Director of

Voice and UnifiedCollaboration,Global Crossing

8/4/2019 Cityam 2011-09-29


8/4/2019 Cityam 2011-09-29



PROFESSIONAL INSIGHTGlobal news and inormation company Thomson Reuters moved part o its business to thecloud a number o years ago, and has an ongoing cloud migration programme. Jane Moran,Global CIO, explains why cloud is so important; and what diference the platorm has madeto the Thomson Reuters business, its staf and customers

Cloud has made us more agile“The cloud,” says Jane Moran, Glo-

bal CIO o worldwide news and in-ormation company Thomson Reu-ters, “has made a big, positive difer-ence to us. There are many defini-tions o what ‘cloud’ is; but what itmeans to me is working with a ven-dor partner who bears the burdeno managing all o the hardwareand networking so that we don’thave to.” They, then, are responsibleor security and availability.

Thomson Reuters made its ini-tial oray into cloud computing in2005; so it should have been no sur-prise when, earlier this month, it

was announced that the compa-ny’s human resources and payrolldata is moving across to the Work-day cloud platorm.

“Not everything we do is operat-ed in the cloud,” says Moran. “We’rea very large corporation with hun-dreds o internal business sys-tems. The strategy was to becomemore e cient and efec tive acrossthe corporation — and, as we stan-dardise and rationalise the busi-ness architecture, moving to thecloud enables us to be more agile.”

BenefitThe major reason or this agility,says Moran, is that, with a cloud-

based solution, Thomson Reutersdoesn’t have to ocus on installingand maintaining the hardware in itsdata centres.“We spend about 30 or

40 per cent o any given on-premiseproject installing hardware and kitin our data centres,” says Moran. “Ireally eel as though cloud comput-ing is making a step change in the

way that businesses work.”The other big benefit or Thom-

son Reuters has been speed. Thetimerame to move the company’shuman resources to a cloud plat-orm is 18 months, start to finish.

An on-premise upgrade would have

taken our years. Because the com-pany is able to realise cloud solu-tions quickly, this speeds deliveryand benefits its customer base. Plus,o course, because the applicationsare sitting in the cloud, upgradesare automatic. Cloud-based com-puting is an increasingly impor-tant tool to leverage e ciencies.

“Because it is browser-based, itmakes it extremely easy to roll outapplications to Thomson Reuters’employees across the world,” saysJane. “There’s also a benefit withinIT, because the resources needed tomaintain cloud-based applicationsare ar less than those needed oron-premise ones.”

SpecialistSecurity is one o the main rea-sons why companies are wary o migrating to a cloud platorm;

but Moran has confidence in herThomson Reuters solutionsproviders. “I you think about what

cloud vendors do or a living,” shesays, “then you realise that theyspend a lot more money than anyindividual company ever could onsecurity solutions.

“Every one o these cloud provid-ers is dedicated to keeping data se-cure; and I also like the way they

work very closely together to share best practices.”

Cloud technology is specialist,however. Which begs the question:

how did Thomson Reuters make themove to its cloud platorms? Did ituse an external migration team?Did its vendors help? Or is ThomsonReuters’ lucky enough to have itsown expert in-house IT knowledge?

“A combination o all o those,”says Moran. “We have used anexternal systems integrator in thepast; and the vendors themselvesare very strong in terms o their in-ternal capabilities to make sure you(make the move) successully.

“But the entire industry is chang-ing and people change with it. I I look at my IT team — and I haveroughly 1,000 people in this group— they are upskilling themselves.

We are providing training; but

we also find that staf are trainingthemselves because they can seethat this is the way the industryis going.”

‘I really feel asthough cloudcomputingis making astep change

in the way thatbusinesseswork’

Focus on yourbusiness needs

1For any SME thinking o moving to the cloud, pickone area where you have

a business problem that you’retrying to solve. Then partner

with a suitable vendor and work with them to build a road map.

Work closely with yourbusiness partners

2Have a conversation with your business partnersabout the business prob-

lems you are trying to solve. Thisis not about swapping like-or-like technology, because the

whole paradigm o cloud is com-pletely diferent.

Bolt-on if necessary

3 We can’t customise theapplications we use —that right sits with our

vendor partners — but we canconfigure them. I companies arenervous about (not being able tocustomise apps), they shouldconsider that many cloud pro-

viders encourage their custom-ers to write bolt-on applications.

Be prepared to work ina different way

4Cloud is a diferent wayo working. It’s not abouta team o IT people going

away or a year to work on a sot-

ware programme. It’s true col-laboration between the people

who need to use these platormsto solve their business problemsand the people who work inter-nally in your IT department.

JANE’S BEST TIPS

4

TONY GREENWAY

[email protected]

Jane Moran

Global CIO, Thomson Reuters

8/4/2019 Cityam 2011-09-29


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Let’s

benefits

PANEL OF EXPERTS Andy Burton

Chairman,

Cloud Industry

Forum

Andrew Greenway Global Cloud Computing

Program Lead, Accenture

To me the questions are more about what, when and how rather than i. That said,or most the adoption o cloud will not be

wholesale in the oreseeable uture but case by case.Which areas o IT move to the cloudand when will be driven by the characteris-tics o the application area being considered.Issues such as integration with other appli-cations; the regulatory environment (suchas the need or data to be stored in a speci-ic jurisdiction); in-house skills and time tomarket all influence the priorities and thedeployment model.

In myopinion the issue o data sec urity haspractical solutions,and I remain optimisticthat access to high -speed internet throughcable and the licensing o 4G will continueto improve the pervasiveness o connec-tivity.The real challenges to overcome in aast-growing market relate to driving clar-ity and standards o contracts/service level

agreements provided by service providersand enabling inter-operability and porta-

bility o data — all o which will strengthencustomer confidence.

For many businesses, the question o cloud still comes down to a cost-bene-fit comparison. Increasingly the cloud-

based IT services available on the marketare proving good enough to win on costgrounds, as well as bringing much great-er speed, agility and flexibility. At a high-er level, cloud services allow you to speedinnovation and launch new services and

businesses in new markets.The choice o service provider will be driven by a care-ul comparison between the services thatproviders are ofering and the require-ments o the customer.

For many IT services, cloud is already‘mainstream’. It’s at the core o everyday

voice and data communications, email,CRM, analytics, collaboration, social net-

working, training; the list goes on. Itsawareness amongst consumers is alsoincreasingly evident, with services likeGmail and Apple’s iCloud paving the way

orward or mass-market acceptance. When it comes to business,organisations, big and small, are using cloud services to-day,at scale.Increasing sophistication andchoice is opening up new opportunities allthe time.

Rapid operational scalability,elasticityo consumption (allowing scaling up anddown), pay-as-you-go and improved resil-ience o service due to its architecture.How-

ever,arguably the biggest advantages lie inthe enablement o business transormation.Benefits such as rapid access to new technol-ogy can reduce time to market o new solu-tions which when coupled with predictablelow costs drives innovation and process im-provement.Cloud has a game-changing ca-pability that levels the playing field betweenthe smallest and largest organisations.

Cloud servicesare currently helping or-ganisations reduce costs, enhance scala-

bility,increase implementation speed,andimprove applications and business proc-

esses. Whilst cost savings are still seen ascritical, Accenture is increasingly seeing

business agility as the main driver. Busi-ness leaders are under immense pressureto move quickly, get closer to stakehold-ers, launch new products and communi-cate with people wherever they are and onevery device. Cloud-based services are o-ten built with this agility at the centre o the design.

Question 1:How does a firm assess if itshould migrate to the cloud —and how does it choose whichcloud company to use?

Question 2: What are the perceived mainadvantages of cloud?

Question 3: What are the challengescloud technology still needsto overcome in order to go‘mainstream’?

Chris Gabriel

Marketing and

Strategy Director,

Logicalis

Cloud should be or most firms,wheth-er that’s moving back oce applicationslike email to a secure public cloud, or us-ing private cloud to transorm the way

business applications can be run inter-nally. A ull cloud assessment should beconsidered when choosing a service pro-

vider, establishing readiness to migrateand providing a structured view o whatapplications and services can be movedto a public or private cloud inrastructure.Public cloud transparency is key: whereis it? What jurisdiction it is in? And whatSLA will be ofered?

Cloud is simply another way o deliver-ing ICT service to your business — noth-ing more complicated than that, with theadvantages spanning rom how internal

IT departments acquire, pay or, and runIT systems,through to the speed at whichnew applications can be delivered to busi-ness users.Internal Private Cloud benefitsinclude reduced server growth throughmore ecient usage, reduced operation-al overhead and aster delivery o inter-nal business applications, overall makingIT more ecient and more responsive to

business demands.

Cloud technology is ‘mainstream’; butor many firms, cloud is rightly part o alonger term migration and transormationstrategy.Private clouds are already in placein many City firms,but public cloud ofer-ings today have not been suitable or thehighly regulated demands o City lie. But,

with public clouds now becoming available

in the UK,and built on technologies romtrusted vendors, these trusted private andpublic clouds will start to convince a scepti-cal City that cloud is a reality.

8/4/2019 Cityam 2011-09-29


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C ATASTROPHIC errors of judg-ment” by company boards are

blamed in Alistair Darling’smemoirs for the spectacular

corporate failures over the last few years. Bringing more women intothe boardroom to shake up behav-iour is being touted as at least partof the answer and Lord Davies hascalled for at least a quarter of thedirectors on FTSE boards to befemale appointees by 2015. His rec-ommendations look set to beenshrined in the official UK Corporate Governance Code any day now and female non-executive can-didates like Julie Meyer, the success-ful founder of Ariadne Capital, havealready been inundated with invita-tions to take up prestigious boardseats.

But before we celebrate the end of history, let’s not kid ourselves that

women are the panacea to poor gov-ernance. Even if you are blessed

with the A-Team of diverse and capable board members, there is anotherelephant in the room, arguably much trickier to resolve.

Directors are not superhuman –even female ones. They face a phe-nomenal task: to supervise and stew-ard vast multinationals and recentevents suggest that even the execu-

tives on the board can struggle togain the visibility they need to dothe job.

I doubt we’ll hear the chief execu-tive of UBS being in any hurry torepeat the claim he made toinvestors a year ago, that if some-thing goes wrong under his watch“you won’t hear us saying we didn’tknow”. If it is hard for even the most

well intentioned of executives tohave a firm handle on everythingthat they need to know, one canonly imagine the challenge for thenon-executive.

Poor information has been at theheart of most of the recent headlinegrabbing corporate crises from BP toLehman Brothers and NorthernRock. It wasn’t that their boards dis-played poor judgment in resolvingtheir problems: they didn’t realisethey had any.

Improving the quality of informa-tion available to corporate boards is

one of the most powerful ways of improving board effectiveness. Butour research suggests that the infor-mation boards receive is far fromadequate. The official informationsource for the board is often a dense

300-page deck of retrospective,financial data – only adding to the

fog through which directorsattempt to plot the course of thecompany.

Adequate challenge in the board-room cannot occur without diversi-ty of thought (often, but not always,

a consequence of gender diversity), but nor can it occur without access

to the right information.Only whendirectors are provided with the req-uisite information will we see

whether Darling’s charge of poor judgment is a fair one or whether Winston Churchill may have more

light to shed: “Give me the toolsand I will do the job”.

T

HE vast majority of interviewsare “competency-based” thesedays. This means they use a

method of questioning thataims to find out whether or not youcan do the job. It also means thatthe same questions come up timeand time again. This is great newsfor interviewees because it’s easy toprepare when you know what toexpect. Uzair Bawany, the managingdirector of a specialist financialrecruiter says it’s surprising how many people don’t know how toanswer the tough questions. We ask him to explain.

Q.TELL ME ABOUT YOURSELF.

A. This is not an invitation to ram- ble on. If the context isn’t clear,

you need to know more about thequestion before giving an answer.

Whichever direction your answerultimately takes, be sure that it hassome relevance to your professionalendeavours. You should also refer

to one or more of your key personalqualities, such as honesty, integrity,

being a team player, or determina-

tion. For example, if you choose“team player”, you should tell astory about yourself outside work –perhaps as a member of a sportsteam – that will speak volumesabout you at work.

Q.WHAT KIND OF SALARY ARE YOUWORTH?

A. This question is asking you toname a desired figure but the

twist is that it also asks you to justi-fy it. It requires that you demon-strate careful analysis of your

worth, industry norms and jobrequirements. We would recom-mend that you try for a higher fig-ure rather than a lower one. If theirimmediate response is to say that’stoo much, accept it as no more thana negotiating gambit, and come

back with your own calm rebuttal:“What did you have in mind?”

Q.WHAT ARE YOUR WEAKNESSES?

A. Turn your answer into astrength. For example, I some-

times take my work too seriously and stay late.

Q.WHY DID YOU LEAVE YOUR LASTJOB (OR WHY ARE YOU LOOKING

TO LEAVE)?

A.Be positive. Do not criticise your previous employer even if

you left under difficult circum-stances. Provide positive reasons for

moving on. If you are currently employed do not sound too desper-ate to move. Use positive illustra-tions of the way you couldcontribute to the position you haveapplied for.

Q.WHAT WOULD YOU LIKE TO BEDOING FIVE YEARS FROM NOW?

A. The safest answer contains adesire to be regarded as a true

professional and team player. As faras promotion, that depends onfinding a manager with whom youcan grow. Of course, you need to

ask what opportunities exist withinthe company before being any morespecific.

Q.CAN YOU TELL ME ABOUT APROBLEM THAT YOU HAVE HAD

TO DEAL WITH?

A. The point of this question is tosee how you would tackle obsta-

cles at work. The ideal answer would involve you thinking througha difficulty and solving it throughthe help of other people. Also indi-cate any lessons you may havelearned from this experience.

How to get the

answers rightat interview

Business Features | Careers

Interviews: underthe spotlight

Picture: GETTY

Increasing the percentage of women onboards won’t solve the problem

Picture: REX

JENNIFER HARRISBOARD INTELLIGENCE

Recruitment specialist Uzair Bawanytells Donata Huggins how candidatesshould deal with the tough questions

28

Putting women on boards will not help

8/4/2019 Cityam 2011-09-29


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8/4/2019 Cityam 2011-09-29


RIGHT, you’ve got the latest kit, theiPhone 4, iPad 2, BlackBerry Bold

Touch perhaps, but your smart-phone’s home screen is looking

ever-so bare. Remedying this involves atrawl through app stores and user reviews

without even knowing what you’re look-ing for. Fear not. We look beyond the

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BLOOMBERGBest for:Business andfinance......until City A.M.launches its ownapp, of course.Bloomberg’s data is hard to beat, and City A.M.’s editor Allister Heath is a daily user.“The market data is very accessible and of course spans fixed income, commodities,currencies and equities.” Very good on theiPhone. For iPad, iPhone, BlackBerry, Android smartphone, Android tablet and Nokia. Free.

EVERNOTEBest for:Keeping note

If there was any-thing that could actas your virtual mem-ory, it’s this. Evernote’s best funtion is theability to record your voice, convert what

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Viber is the new Skype. Think free callsand text messages toanyone who also has the application. Thisis the app that will revolutionise yourphone bill. For iPad, iPhone, iPod touch and Android. Free.

UK TRAINTIMESBest for:Travel

Live departure infor-mation at your finger-tips. This app doeseverything from saving the journeys youlook up the most to displaying the plat-form of the departures you need. You’llfind yourself using it more than you origi-nally thought. For iPad, iPhone and iPod touch. £4.99

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Hot date? Clientlunch? Post-work bevvie? Urbanspoon pro-

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Lifestyle | Technology

30 CITYA.M. 29 SEPTEMBER 2011

OUT OF OFFICEHELENA LEE

LONDON RESTAURANT FESTIVALCelebrate the London Restaurant Festival thisOctober as it sweeps through the capitalonce more. Highlights include the gastronom-ic roadtrip Gourmet Odyssey, (that is, arestaurant crawl on a Routemaster bus),which hops from course to course includingrestaurants such as the Michelin-starredArbutus to Dishoom on Upper St Martin’sLane. 3 – 17 October. For information, tickets

and festival menus go to www.londonrestau-rantfestival.com.

KING JAMES BIBLE READINGS AT THE NTReadings from National Theatre luminariessuch as Mark Gatiss, Lindsay Duncan,Maureen Lipman and Patricia Routledgeare taking place at the Lyttelton Theatreto celebrate the King James Bible’s400th anniversary. Nicholas Hytnerdirects the twelve 80 minute extracts.8 October – 6 November, £8 for up to 3readings, £6 each for 4 to 10 readings,

£5 each for 11 to 12 readings fromwww.nationalthreatre.org

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For more information, go towww.dnfa.com

Left, hop on a bus andexperience a differentrestaurant for eachcourse during theLondon RestaurantFestival.

Life in your hands:

smartphone apps

and following the success of his 20 minutemeal app, here he is again with this brandnew social number that capitalises on ourlove of sharing food recommendations.Upload photos of your favourite placesand synch dates of future visits with yourcalendar.iPad, iPhone and iPod touch. £2.99.

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Also, for sports fans, special mention hasto go to the Sky Sports news app, which hasthe best up-to-the-minute sports coverage of cricket, football, tennis, Formula 1, rugby league and union, golf and boxing. For iPad, iPhone, iPod touch and BlackBerry. Free.

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Particularly stun-ning on the iPad, this is one of the bestdigital magazines. The content is identi-cal to the physical copy, but cheaper, andparticularly good are the share buttons atthe end of certain articles that will let yousend them to friends. For iPad, iPhone, iPod touch and Android. Free to download. Individual magazinesnormally £2.99.

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of the city, the appuses your location to find the nearest dock-ing station. You’ll never be caught withouta Boris bike again. For iPad, iPhone, iPod touch and Android. Free. BlackBerry, £1.99.

8/4/2019 Cityam 2011-09-29


8/4/2019 Cityam 2011-09-29


T E R

R E S T R I A L

EASTENDERSBBC1,7.30PMPatrick’s refusal to reveal the truthleads to angry scenes at the Vic, asPhil accuses him of trying to harmBen.

THE MARVELLOUS MRSBEETON,

WITH SOPHIE DAHL BBC2,8PMSophie Dahl explores the life and timesof the woman who created the originaldomestic bible, Mrs Beeton’s Book of Household Management.

LIVEUEFAEUROPA LEAGUE

FOOTBALL CHANNEL5, 7.30PMTottenham Hotspur v ShamrockRovers (Kick-off 8.05pm). JimRosenthal presents coverage of theGroup A fixture at White Hart Lane.

BBC1

SKY SPORTS 17pm Sky Sports News at Seven

7.30pm Live Premier League

Snooker 11pm The Rugby Club

12am Ringside1am Premier

League World 1.30amThe Rugby

Club 2.30amRingside3.30am

Premier League World 4am The

Rugby Club 5am-6am Ringside

SKY SPORTS 27pm IAAF Athletix 7.30pm

Premier League World 8pm The

Rugby Club 9pmRingside 10pmTime of Our Lives 11pm WWE:

Late Night – Raw 1am WWE: NXT

2am Premier League Snooker

5.30am-6am NRL Fulltime

SKY SPORTS 37pmRacemax: Motor sport

round-up. 8pm America’s Cup

Uncovered 8.30pmGolf 9pm Live

PGA Tour Golf 12am European

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Uncovered

BRITISH EUROSPORT7pmMotoGP 8.30pm British

Superbikes 9.45pmWorld

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11.45pm GT Academy: Road to

Dubai 12am-12.10am Champions

Club 5.15am-7.55amLive MotoGP

ESPN5.30pm Live UEFA Europa League

Football 8pm Live UEFA Europa

League Football 10.30pm Goal!

11pm Goal Show 11.30pmESPN

Press Pass 12am UEFA EuropaLeague Highlights 2am UFC: The

Ultimate Fighter 3amWRC Rally

World 4am-6am European Drag

Racing

SKY LIVING7pmCriminal Minds 8pm Ringer

9pmBritain & Ireland’s Next Top

Model 10pm Pushy & Proud: Disco

Diva Mums 11pm Bones 12am

Criminal Minds 1am CSI: Crime

Scene Investigation 2.40am

Maury3.30am Bones

4.20am Nothing to Declare

5.10am-6am Jerry Springer

BBC THREE7pm Top Gear 8pmDon’t Tell the

Bride9pm Young Soldiers 10pm

EastEnders 10.30pm Lee Nelson’s

Well Good Show 11pm Family Guy

11.45pm Young Soldiers 12.45am

Lee Nelson’s Well Good Show

1.15amWilfred 1.35am World’s

Craziest Fools 2.05am Young,

Dumb and Living Off Mum

3.05am The Real Hustle: NewRecruits 3.35am Wilfred 3.55am

World’s Craziest Fools

4.25am-5.25am Don’t Tell the

Bride

E47pm Hollyoaks7.35pm How I Met

Your Mother 8pm The Big Bang

Theory 8.30pmPerfect Couples

9pm How I Met Your Mother

9.30pm Happy Endings 10pm The

Inbetweeners 10.35pm Show and

Tell 11.25pmChris Moyles’ Quiz

Night 12.15am The Big Bang

Theory 1.10am Scrubs2.05am

How I Met Your Mother 2.30am

Show and Tell 3.10am Rules of

Engagement 3.35am Reaper

4.15am Glee 5am-6am Switched

HISTORY7pm Treasure Houses of Britain

8pm Pawn Stars 8.30pm

American Restoration 9pm Ice

Road Truckers 10pm Storage

Wars 11pm Pawn Stars 11.30pm

American Restoration 12am IceRoad Truckers 2amOil Riggers

3am Treasure Houses of Britain

4am Pawn Stars 4.30am Storage

Wars 5am-6am Ancient

Discoveries

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10pm Deadliest Catch 11pm

Weird or What? 12am Bear Grylls:

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2amDeadliest Catch 3.50am

River Monsters 4.40am

Catastrophe 5.30am-6am

Destroyed in Seconds

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HEALTH7pmBabes in the Wood8pm

Raising 10 Kids: The Hayes Way9pm I Didn’t Know I Was

Pregnant 10pm Your Kid AteWhat? 11pm Emergency: Life in

the ER 12am I Didn’t Know I Was

Pregnant 1am Your Kid Ate

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the ER 3amRaising 10 Kids: The

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Idiot Abroad 2 11pmRoss Kemp

on Gangs 12am Law & Order 1am

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BBC2 ITV1 CHANNEL4 CHANNEL5

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History of the Home

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Mrs Beeton, with Sophie Dahl

9pm Shirley: Biopic of Shirley

Bassey, starring Ruth Negga.

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12am Dame Shirley Bassey:

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6.30pm ITV News

7pm Emmerdale

7.30pm Death of the High

Street: Tonight

8pm Emmerdale

8.30pm Coronation Street

9pm Billy Connolly’s Route 66

10pm ITV News at Ten10.30pm London News10.35pm The Jonathan Ross Show

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12.30amThe Zone: Shopping and

interactive gaming; ITV News

Headlines2.30amDeath of the

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Jeremy Kyle Show

6pm The Simpsons 6.30pm

Hollyoaks 6.55pm 4thought.tv

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Channel 4 Presents – Jonnie

Peacock: A profile of the Paralympic

sprinter. 8pm Country House

Rescue 9pm Educating Essex 10pm

Ramsay’s Kitchen Nightmares USA

11.05pm Seven Dwarves 12.05am

The Film Show 12.35amMusic on4: Ibiza Rocks 1.05am Music on 4

Favourites: The Kooks 1.30am

4Play: DJ Shadow 1.40am

Rockfeedback Presents: End of the

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2.50am The Wonderful World of

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5.15am-6.10am Cookery School

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6.25pm OK! TV: Hosted by Jeff

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7pm 5 News at 7

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(Kick-off 8.05pm).10.10pmBig Brother

11.15pmBig Brother’s Bit on

the Side

12.10amSuperCasino4.05am Meals in Moments 4.15am

Brian Sewell’s Grand Tour 5am

County Secrets 5.10am Wildlife

SOS 5.35am-6amHouse Doctor

28 12

15 29

17 13

11 19

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7

45

10 30

16 4

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adds up to the total in the box

above or to the left of it.

You can only use the digits 1-9

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 BREAKCopyright Puzzle Press Ltd, www.puzzlepress.co.uk

KAKURO

QUICK CROSSWORD

LAST ISSUE’SSOLUTIONS

KAKURO

WORDWHEELUsing only the letters in the Wordwheel, you have

ten minutes to find 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.

SUDOKU

Place the numbers from 1 to 9 in each empty cell so that each

row, each column and each 3x3 block c ontains all the numbers

from 1 to 9 to solve this tricky Sudoku puzzle.

SUDOKU

QUICK CROSSWORD

ACROSS

1 Young of a cow (4)

3 Make parallel (5)

6 Singer who had ahit with Shout (4)

7 Country road (4)

9 Not divided or sharedwith others (9)

11 Bedtime beverage (5)

12 Typographical error (7)

15 Involving a singlecomponent orelement (5)

17 Chemist (9)

18 Indian nursemaid (4)

19 Hostelries (4)

20 River which runsthrough Glasgow (5)

21 Child’s stringedtoy (2-2)

DOWN

1 Acute abdominal pain (5)

2 Muscle that bendsa joint (6)

3 Roman statesmanwho became emperorin 27 BC (8)

4 Health facility wherepatients receivetreatment (9)

5 Devoid of clothing (5)

8 Essential (9)

10 Andrew ___, Scottish-born US industrialistand philanthropist (8)

13 Lacking a senseof security (6)

14 Concerned with onespecific purpose (2,3)

16 Popular web portal (5)

M I S S E S P L

O U A N O R A K

L A C E R K P

E C H I D E O U S

S A U D I E R U P T

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WORDWHEELThe nine-letter word was

PANTYHOSE

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Lifestyle | TV& Games CITYA.M. 29 SEPTEMBER 201132

8/4/2019 Cityam 2011-09-29


Sport 33CITYA.M. 29 SEPTEMBER 2011

Haile motivated: Marathon mastergoing the distance to London 2012Gebrselassie in nomood to retire untilhe’s had another shotat the one major titleto elude him

IF YOU’RE looking for a quitter, some-one who shrinks in adversity, wholacks the resolve to adhere to a task until the bitter end, then one of the

greatest distance runners of all time isresoundingly not your man.

A fanfare-festooned career bejewelled by two Olympic gold medals, four worldchampionship golds and 27 world records

might suffice for an athlete of 38, but notthe indefatigable Haile Gebrselassie.

He came close to hanging up his well- worn trainers less than a year ago follow-ing a disappointing New York marathon,and lesser men might have revisited theidea after failing to finish Sunday’s Berlinmarathon.

But sitting opposite the slight, softly spoken Ethiopian with the mighty lungsand even bigger heart in his London hotelroom, it is clear he has a few more milesleft to run. Thousands, in fact.

Returning to the capital next year is hischief remaining goal, to collect the oneprize conspicuous by its absence from aCV testament to his dominance of firsttrack and then road. “The Olympicmarathon – that’s it,” he declares.

London marathons have not elicited the best from Gebrselassie, who won four con-secutive Berlin marathons and three inDubai, but has never finished higher thanthird in a trio of attempts here.

He blames the anomaly on his asthma, which is exacerbated by the high pollencounts of early summer, and is confidentthat August will be kinder to his respirato-ry system than late April. “The Olympicsare in the summer, it’s warm and hot. Ihope that will help,” he says.

TOO AMBITIOUS

Geb, as he is affectionately known, wassurprised to suffer breathing problems inBerlin, despite a favourable climate, whichforced him to withdraw less than fivemiles short of the line. To compound thedisappointment, Kenya’s Patrick Makau

went on to win in two hours, three min-utes, 38 seconds, breaking Gebrselassie’sthree-year-old world record – yet he didenough to reaffirm his belief he can re-

write them all over again.“My training, everything, was perfect,

but maybe not good enough. Now I amthinking about the next one. I want tolearn something from the failure – not

just to worry about it. Running is not aneasy job. Nowadays I am still doing good.In Berlin, my pace until almost 30km wastoo good. I ran at world record pace. It was2:03:20 or sometimes 2:03:10 pace, whichmeans I have enough.”

Having not yet even qualified forLondon 2012, could he really regain therecord there as a 39-year-old? “Sure! LastSunday, I was really very, very good until Istopped. One thing I understood from thatcompetition, is that maybe I was too ambi-tious to break the record. Now I’ll justfocus on winning the race.”

PRESSURE

His utter determination did waver, foronce, in New York in November, after aknee injury forced him out of the race. Toglobal shock, he announced his immedi-

ate retirement, but just days later, follow-ing outcry from his homeland, he

withdrew it. “That day I was maybe a bittoo emotional. After I dropped out I wentinto the press conference and it was very difficult to answer that kind of question. [Ithought:] ‘Ok, if things are going like this,let me stop competing and do somethingelse.’”

What happened on return to his beloved Ethiopia changed his mind. “They were very upset. Everybody was saying:‘OK, you can retire, but not this way.’”

It had precedent. Back in 2004, at the Athens Games, he did not feel fit todefend his 10,000m title, owing to an

Achilles problem, but bowed to nationalpressure and competed. He came fifth, on

his farewell track appearance. Does he feela burden of expectation from his compa-triots? “A little bit of pressure, too muchpressure. If people expect something, youhave to do something,” he admits.

Retirement is firmly off the agendanow, however, even after the Berlin set-

back. He could hardly be more emphatic:“No, no, no, no, no, no, no – come on. Thisis serious. In sport you always have to plan,to tell yourself ‘I have to do this and this’.Nowadays I am just thinking of the nextrace.”

Perhaps after London 2012 he willreconsider, but the father of four believeshe will know when to quit the circuit. “It

will come by itself. If I don’t win a race oram not good enough in competition, itmight be better not to compete – but notto stop running. Running is not the one

you stop.” Aside from running 35km a day and

overseeing business interests in property,

motoring and coffee production thatemploy some 600 people, he also finds

time to channel energy into helping oth-ers achieve Olympic dreams.

GRUELLING

Gebrselassie, through his sponsors G4S,the security company, is an ambassadorand mentor to 14 young athletes fromaround the world. They come from a widerange of disciplines – from table tennis tosailing to BMX – but he believes sportinglessons are universal, having idolisedMuhammad Ali as a youngster. “He’s a

boxer – why do I need to know about him?It’s a question of winning.”

Some of the aspiring talents have visitedhis home in Addis Ababa, where they taste

a gruelling regime that involves runningat 3,000m altitude. “When they come, my biggest welcome drink is training!” helaughs.

His wiry 5ft 5in, 8st 8lb frame can bare-ly contain his affection for Ethiopa, whichhe is considering channelling into a politi-cal career. Gebrselassie says he wants hiscountry to be as prosperous as those in

which he competes. “Right now I’m tryingto invest all my money from athletics – isthat enough? Or to share experience? Itravel around the world. If politics is the

way, why not?”If he chose to stand for office, he would

surely be swept in by a landslide. A nation-al hero, his opponents would stand nochance. As countless competitors acrossthree decades have found, he is the mostformidable of men to run against.

Haile Gebrselassie is a mentor to the G4S 4teen programme, which is helping fourteen young athletes achieve their goal of competing at

London 2012. For more information please visit www.g4ssport.com

Gebrselassie still livesand trains in his nativeEthiopia, where highaltitude is particularlysuited to distance run-ners.

Picture:ROBIN HAMMOND

“Nowadays Iam still goinggood. InBerlin I wasrunning atworld recordpace, whichmeans I have

enough.”

lAs a child Gebrselassie ran miles to schooland back every day. Now he has an evenmore rigorous regime in the hills aroundAddis Ababa. His preferred training spot of Entoto is 3,000m above sea level, wherethere is less oxygen in the air, which makesrunning at lower altitude far easier.

lHaile runs 35km in total every single day;a 25km session at the crack of dawn, withanother 10km – which he refers to as “the

easy one” – in the afternoon.

lHe spends up to four hours a day devotedto athletics, with gym sessions, physiothera-py and massage also integral parts of hisroutine.

lBreakfast, at 5am, is tea and bread, whilelunch is his main meal. He eats mostly carbo-hydrates, with some protein, and favours theEthiopian speciality of injera (spongy pan-cake) and wat (stew).

lHaile’s exercise tip: “One thing I want totell you: It’s a sport. Take it like a daily meal.I know it’s hard to wake up in the morning,but tell your body you have to do it, you haveto eat! To start is very hard, once you push

yourself and start it goes by itself.”

TRAINING TIPS | RUN LIKE HAILE

WORDS BY FRANK DALLERES

8/4/2019 Cityam 2011-09-29


THE World Cup in March was a

wake-up call for England whoexhibited a brand of cricket that would’ve looked outdated 15

years ago.On the face of it the whistle-stop

tour of India doesn’t have much rid-ing on it, but any experience the likes

of Jade Dernbach and Steven Finncan gain bowling in the sort of condi-tions they will encounter nextmonth will stand them in good stead.

England will be playing a lot of cricket in this area of the world in thecoming 12 months – they’ll defendtheir World Twenty20 title in SriLanka this time next year – so there isplenty to be gained, regardless of theconfidence a series win would bring.

ROUGH DIAMOND

Of the new additions to the bowlingdepartment Dernbach is the one whoexcites me the most. ‘Work inprogress’ is the popular phrase trot-ted out when you get a cricketer of his ilk bursting through, but in his

instance it’s accurate. While you know what you’re likely

to get with Finn, and it’s usually highquality, the charismatic Surrey pace-man, although occasionally erratic,has the potential to offer more.

England haven’t had a reliabledeath bowler since Andrew Flintoff was in his pomp, and with so much variety at his disposal Dernbach isincreasingly looking like the man who captain Alastair Cook will look to in pressure situations.

OPTIONS APLENTY

Speaking of Cook, whereas his prede-cessor Andrew Strauss was ham-strung for options, the Essex openeris now almost waylaid.

In the absence of a second spinner– though Scott Borthwick may

emerge to fill that position – Englandhave been crying out for someone

capable of taking pace off the ball.Ravi Bopara has never been able tonail down a role in an England side, be it the one-day or Test team, but heproved this summer he’s the man toreplace Paul Collingwood.

Elsewhere, I don’t think I’ve beenmore taken aback by a debut per-formance than Jonny Bairstow’s inCardiff and the Yorkshireman, wortha place for his batting alone, will provide competition for gloveman CraigKieswetter.

I’d never advocate England touringIndia without frontline bowlers of the calibre of Stuart Broad and James Anderson, or a batsman as skilled asEoin Morgan, but on this occasiontheir unavailability may prove a bless-

ing in disguise, if it provides the youngsters an opportunity to thrive.

Results

ENGLAND centre Manu Tuilagi insistshe’s perfectly at ease with beingdescribed as “a freak” by his team-mate Mike Tindall.

The 20-year-old Samoan-born pow-erhouse has burst onto the interna-tional scene, adding an element of bite to England’s midfield, not tomention the try-scoring ability whichhas yielded four scores in his first five Tests.

Standing at 6ft 1in and weighing inat over 16 stone, the Leicester Tigersstar represents a fearsome physicalspecimen. Tindall, no shrinking violethimself, was taken aback by his mid-field partner’s destructive display

against Romania last week, but Tuilagi was happy with his col-league’s choice of adjective.

“I take that as a compliment,” said Tuilagi, ahead of Saturday’s crunchPool B showdown against Scotland. “I will just go there and play my normalgame, play to my strengths and betough. I am looking forward to it.

“I like to get nervous before thegames but not too much. It keeps youalert and you know you are thinkingabout the game.

“Scotland are very direct and Ithink their loss against Argentina willmake them even more hard to beat because they need this win – but weneed this win as well.

“This is not a Six Nations game – itis a World Cup and it will be a differ-ent animal.”

Tuilagi could have been forgivenfor being distracted ahead of Saturday’s meeting with Scotland as aresult of the rumours circulatingabout his club future and a potentialmove to a Super 15 side.

Should such a switch come tofruition, Tuilagi would be barredfrom representing his adopted coun-try under new Rugby Football Unionregulations due to be enforced afterthe World Cup. But Tuilagi insists hisimmediate future lies in England with Leicester.

He said: “I am really happy to be atLeicester. I am loving playing rugby for England. This is my first WorldCup and hopefully it won’t be my last. When you do something you like, you want to do it all your life.”

A freak? I’ll take that as acompliment, says TuilagiBY JAMES GOLDMAN

RUGBY UNION▲

Full steam ahead for England’s one-day revolution

email [email protected]

Sport34 CITYA.M. 29 SEPTEMBER 2011

SPORT | IN BRIEF

Paralympic success for LocogOLYMPICS: London 2012 chiefs haveannounced their “delight” at the recordnumber of applications for the London2012 Paralympic Games, with over 1mtickets applied for from 100,000 appli-cants. The demand means ballots to allo-cate the tickets will now take place for

16 of the 20 sports featured in theGames, as well as the opening and clos-ing ceremonies. A 2012 spokespersonsaid: “We are delighted by the responseto Paralympic Games tickets and wewould like to thank the British public.”

England reveal hectic scheduleCRICKET: England could potentially face47 days of international cricket nextsummer after their 2012 schedule wasannounced yesterday. The West Indiesarrive in May for three Tests, three one-day internationals and a Twenty20game, before Australia play five one-dayers in June and July. South Africathen play three Tests, five ODIs andthree T20 internationals between mid-July and mid-September.

Sunderland’s Bramble arrestedFOOTBALL: Sunderland defender TitusBramble has been arrested on suspicion

of sexual assault and possession of aclass A drug, police said. Last yearBramble was arrested by NorthumbriaPolice over an alleged rape in aNewcastle hotel but he was laterreleased without charge.

Woods gets captain’s pickGOLF: Tiger Woods has been selected asone of the US’ two captain's picks for thePresidents Cup. Woods and Bill Haas willcomplete in skipper Fred Couples’ team.

CRICKET COMMENT

ANDY LLOYD

De Luca eyes England knockout bonusSCOTLAND'S Nick De Luca admits itwould be a bonus if a victory overEngland on Saturday were to knocktheir arch rivals out of the World Cup.

But the centre stressed that theirmain aim was to uphold their traditionof having made the quarter-finals inevery edition of the World Cup.

“No matter who we were playing thisweekend, it could be – it hopefully won’tbe – our last game in the World Cup,”said De Luca. “If we do it right, England

would go out, which would be an addedbonus, but it’s not the incentive itself.”

Should Argentina beat Georgia,Scotland must deny England a bonuspoint or score four tries themselves toadvance. However, De Luca is optimisticScotland can double their try tally sofar in the tournament.

“I think it’s feasible,” he said, “They dohave a great defence and we aren’t pro-lific try-scorers, so it’s a big ask, butwe’re definitely confident we can do it.”

Tuilagi has scored four tries in his first five Tests Picture: ACTION IMAGES

THE BREAKDOWN |WORLD CUP BRIEFS

GEORGIA’S DERBY DELIGHTMAMUKA GORGODZE’S solitary tryenabled Georgia to celebrate a his-toric 25-9 win over Romania in thebattle of the Pool B minnows. Theopen-side flanker went over 16 min-utes into the second period, whilefly-half Merab Kvirikashvili kicked17 points and Malkhaz Urjukashvilithree more. The result sees Georgiamove up to four points with onegame remaining, while Romania areremain bottom.

WALES WAIT ON WILLIAMSSHANE WILLIAMS, Wales’ record

try-scorer, is on course to be fit forSunday’s vital Pool D showdownagainst Fiji.The Ospreysstar (inset)missedMonday’s81-7 demo-lition of Namibiabut hasmade a suc-cessful returnto full training.“Shane is recovering well,” saidWales medical manager PravMathema. “He is back up and run-ning and we are pleased with hisprogress. The next 48 hours will beessential in determining whether hemay be available this weekend.”

MURPHY’S CHIPS ARE DOWN

IRELAND full-back GeordanMurphy is plotting a World Cup exitfor his business partner, Italy propMartin Castrogiovanni, on Sunday.The Leicester team-mates own arestaurant together but will sus-pend their friendship for 80 minutesof the winner-takes-all Pool C clash.“I’m thinking of leaving some bas-kets of chips in the corners of thechanging room for him,” he said.“That should do it. The amount heeats, it should distract him quitenicely.” On the threat posed byCastrogiovanni, Murphy added:“They’ve improved massively, they’rea serious side. They’re very physicalbut playing some good football.”

8/4/2019 Cityam 2011-09-29


CHELSEA midfielder Frank Lampardhopes his goalscoring contributionagainst Valencia in last night’sChampions League draw will belated-ly kick-start his season.

The 33-year-old, who had startedthree of the previous four matches onthe bench, struck his first goal fromopen play this season with a typically adroit finish in the 56th minute.

But he was denied the full satisfac-tion of being hailed Chelsea’s match-

winner when Saloman Kalou waspenalised for handball and RobertoSoldado stroked home the subse-quent spot kick three minutes fromfull-time.

“I always want to play, that’s agiven. I’ve been like that throughoutmy career,” said Lampard af terwards.

“I love playing for this club. I am very proud of playing here. I’ve hadknocks before in my career –it makesme work harder to come back.”

Lampard’s manager Andre Villas-Boas, who reacted angrily to ques-tions relating to Lampard’s recentinactivity in his pre-match press con-ference, said: “He played well – withthe rest of the team. He was playing

well before. Nothing to say really.”Of the game the Portuguese was

disappointed the Blues relinquishedthe lead when they appeared oncourse to claim victory and moveclear at the top of the group.

Villas-Boas brought Lampard off forKalou with seven minutes remaining,and the new man immediately con-ceded a penalty with a needless hand-

ball offence.“It was a pity because I think we

looked good to get three points,” hesaid. “It was a very good performancefrom the team. I think it was moredeserved for us to win this game.

“Before the game if we were offereda draw maybe we would have beenhappy. But it leaves us with a feeling

we don’t like.”

IN ALL MY years of being involvedin football I’ve never seen any-thing that comes close to match-ing the stunt Carlos Tevez pulled

on Tuesday night in Munich.

Disgrace is the word that springs tomind and, although he has clearly

been poorly advised during variousstages of his career, I have no sympa-thy for him whatsoever.

At a time when fans have never felt

so far removed from today’s modernfootballers, his actions will leave a par-ticularly sour taste in the mouths of,not just City supporters, but followersof the game at large.

Had Tevez been asked to play thelast five minutes of a Carling Cup tieagainst a lower league side, you would

be able to understand a player of hisstanding displaying a certain level of frustration.

But this was a Champions League

tie against Bayern Munich, at a time when his team really needed a contribution from him.

If he was disgruntled about havinglost his place in the side, then what

better way to stake a claim than by

turning the game around?

PICKED THE WRONG OPPONENTIf Tevez thought refusing to play

would advance his cause then he’s been somewhat mistaken. Indeed,he’s picked a fight with the one club

who can afford to deal with himexactly as they see fit –it’s a battle hesimply has no way of winning.

After suspending him, I’m sure City will now be exploring the legal

avenues to see if there’s a way they can get Tevez off their books withouthurting their bank balance. But this isa club who are in the fortunate posi-tion of being able to let one of theirmain assets rot in the reserves.

If Tevez thought he was miserableon the bench against Bayern, waituntil he’s being made to train along-side the academy players.

To me, though, it looks like Tevez isfed up with football and althoughthere are bound to be clubs interestedin him, it wouldn’t shock me if thisepisode sees him slip into retirement.

MANCINI’S THE ONLY WINNERIf there’s anyone who has come out of

this controversy so far with anenhanced reputation then it’sRoberto Mancini. Having so many high-profile players on the books wasalways going to equate to a difficult

balancing act.

The Italian couldn’t have predicted what occurred in Munich, but he’sshown that any instances of playerpower will be ruthlessly dealt withand it’s good to see his employers

backing him up. With Tevez potentially out of the

way, and having won a power strugglethat’s been rumbling for some time,Mancini’s position may ultimately end up being strengthened by theevents of a landmark evening.

Sport 35CITYA.M. 29 SEPTEMBER 2011

FOOTBALL COMMENT

TREVOR STEVEN

Kalou brainstorm

taints Lampard’sclass contribution

Disgraced Tevez picks a fight he’s got no chance of winning

TOTTENHAM midfielder THuddlestone will undergo an ankleoperation on Monday, manager Harry Redknapp has confirmed ahead of tonight’s Europa League clash againstShamrock Rovers.

Redknapp, who is set to field amuch changed side to the one which

won at Wigan last weekend, said:“There is still a problem with him. It’sa blow. He will be out for a while.”

Redknapp woe asHuddlestone sentfor ankle surgery

BY JAMES GOLDMAN

FOOTBALL▲

1

1

VALENCIA

CHELSEA

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Chelsea 2 1 1 0 3 1 4

Leverkusen 2 1 0 1 2 2 3

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Genk 2 0 1 1 0 2 1

GROUP ETEAM PLD W D L F A PTS

Lampard’s goalwas his first fromopen play thisseason

Picture: GETTY

Jol searches forwinning feelingwithout Zamora

ENGLAND striker Bobby Zamora andMousa Dembele have been left out of the Fulham squad for tonight’sEuropa League tie against Odense inDenmark.

Manager Martin Jol, whose side were held in their opening groupgame against Twente, knows his team

will soon turn draws into wins.He said: “I think we will turn a cor-

ner somewhere,” he said. “A draw isnot a defeat.”

FOOTBALL▲

FOOTBALL▲

8/4/2019 Cityam 2011-09-29


SPORTS MINISTER Hugh Robertsonlast night urged Tottenham to accept a£17m public funding package anddrop their legal battle for the OlympicStadium.

Mayor of London Boris Johnsonmade the take-it-or-leave-it offer, which

would helps Spurs build a new groundin north London, yesterday in a bid tohead off next month’s scheduled HighCourt judicial review.

Tottenham have contested the deci-sion to hand the £430m stadium to

West Ham after London 2012 since los-ing out to the Hammers in a bitter bid-ding process in February.

“They’ve had a very good and finaloffer from the mayor,” Robertson said.“The chairman of Tottenham has very encouragingly said it’s their intentionto stay in Tottenham, to redevelop andto help the local community after thesummer riots.

“There is no reason whatsoever tokeep that judicial review in place. I

very much hope they’d want toremove that judicial review.”

The £17m package comprises £8.5mfrom the Greater London Authority,

while Haringey council would alsocontribute £8.5m. The money wouldnot be spent on construction of a new stadium, for which Spurs have already received permission, but on the cost of improving local infrastructure.

Spurs’ concession, ahead of theHigh Court date on 18 October, would

boost London’s bid to host the 2017 World Athletics Championship. WestHam have committed to keeping theOlympic Stadium’s running track,

whereas Spurs want to remove it. White Hart Lane chairman Daniel

Levy said it would be “irresponsible” toproceed “without the appropriate

agreements and support firmly inplace”. He also added: “Discussions arecontinuing.”

Robertson:Spurs mustend OlympicStadium row

TEENAGER Alex Oxlade-Chamberlainscored on his Champions Leaguedebut as Arsenal saw off Olympiacos – and was then tipped torival team-mate Theo Walcott for aplace in the England side.

Oxlade-Chamberlain, who only turned 18 in August, and fellow sum-mer signing Andre Santos scoredinside the first 20 minutes as a weak-ened Gunners team survived afraught finale to earn their first winin Group F.

The £15m former Southamptontrainee is already pushing Walcott fora place on the right wing, and assis-tant manager Pat Rice believes it issomething the elder player will haveto get used to.

“Alex is a very confident boy, he’s a very strong boy, he listens to whatpeople tell him but I think he makeshis own mind up. He can go inside oroutside, he’s got that injection of pace -- what he needs now is to be con-sistent in his play,” said Rice.

“Arsenal supporters are going tosee a lot of this boy. He’s got a big, bigchallenge in trying to get in front of

Theo. Theo’s a very strong-willed guy as well and he won’t give in easy. It all

bodes well for England, anyway.”Manager Arsene Wenger, watchingfrom the stands as he completed a

touchline ban, made six changes, with captain Robin van Persie amongthose rested with Sunday’s northLondon derby at Tottenham looming.

Oxlade-Chamberlain was handedonly his second start and took justeight minutes to seize the opportuni-ty, capitalising on a ricochet to driveinto the penalty area and fire low past Franco Costanzo with his less-favoured left foot.

The shellshocked visitors fell fur-ther behind on 20 minutes, whenMikel Arteta released Andre Santos,his cross was cut out and theBrazilian left-back seized the reboundto beat a hapless Costanzo at his nearpost.

It all looked too easy for theGunners, and so it proved. In the 27thminute a short corner caught Arsenalnapping and, when Ariel Ibagazadinked a cross onto the penalty spotunmarked Spanish midfielder DavidFuster planted a header down andpast Wojciech Szczesny.

The agile Pole prevented an equalis-er before half-time but was beaten by a long-range Vassilis Torossidis shotthat dipped onto the bar early in thesecond half.

Arsenal failed to find a third goal,Oxlade-Chamberlain dallying ontheir best chance, and had to cling onfor a third successive win in all com-petitions.

BY FRANK DALLERES AT EMIRATES STADIUM

FOOTBALL▲

2

1

ARSENAL

OLYMPIACOS

A statement read: “Manchester City fi th t t ik C l T

that his part in the controversy hadt b t l t d It i

ready to play when required and tof lfil bli ti ”

course we would consider a ban. If M h t Cit d it t

City take decisive action and suspend Tevez until further notice

Theo threat:Chamberlainthrows down

the gauntlet

Sport36 CITYA.M. 29 SEPTEMBER 2011

HAILE FOCUSED ON

LONDON OLYMPICSMARATHON MASTEREXCLUSIVE: PAGE33

BY FRANK DALLERES

FOOTBALL▲

FOOTBALL▲

Marseille 2 2 0 0 4 0 6

Arsenal 2 1 1 0 3 2 4

Dortmund 2 0 1 1 1 4 1Olympiacos 2 0 0 2 1 3 0

GROUP FTEAM PLD W D L F A PTS Chamberlain became the

youngest ever EnglishChampions League

goalscorer

Picture: ACTION IMAGES

cityam 2011-09-29

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