cityam 2012-01-06

8/3/2019 Cityam 2012-01-06

1/24

FTSE 100 5,624.26 -44.19 DOW 12,415.70 -2.72 NASDAQ 2,669.86 +21.50 /$ 1.55 -0.01 / 1.21+0.01 /$ 1.28 -0.01

And then there were none:Shell shuts pension scheme

FINAL salary pensions in the privatesector moved closer to extinction yes-terday, after Royal Dutch Shellannounced plans to close its schemeto new members.

The oil giant became the finalcompany in the FTSE 100 to abandonits final salary pension, after it saidnew members would be unable to join from the first quarter of 2013onwards.

Shells announcement came as

trade union Unite rejected the gov-ernments latest offer on pensionsfor NHS workers.

Yesterday Shell said its move to aless generous defined contributionscheme reflected market trends.The plan will be designed to ensurethat the reward package in the UKfor new hires remains strongly com-petitive, it added.

Only 19 per cent of private sectorfinal salary schemes are now open tonew staff, according to a NationalAssociation of Pension funds surveypublished last month. MORE: P2

BY PETER EDWARDS

PENSIONS

WOE in the Eurozone was offset by a wave of promising economic datafrom the UK and the US yesterday.

The UKs biggest sector services ended last year on a surprisingly buoyant note, new research said,while Americas efforts to heal its ail-ing jobs market showed signs ofprogress.

The US private sector added325,000 new jobs in Decemberaccording to an estimate by ADP, agroup that runs outsourced employ-ment services. Today, official non-farm payroll figures are released,with Capital Economics expecting amore modest 150,000 increase inemployment for December.

Fresh claims for unemployment benefits fell by 15,000 last week,according to separate data -- measur-ing 372,000 initial claims.

Meanwhile back in the UK,December data from Markits pur-chasing managers index (PMI)showed services activity and incom-ing new businesses at their highestrates of growth since July 2011. Theservice sector PMI rose to 54 from52.1 in November. Markit also record-ed the fastest growth since July forthe all sector PMI -- which meas-ures activity throughout the econo-my -- rising from 51.2 to 53.2 inDecember. ALLISTER HEATH: P2

BY JULIAN HARRIS

ECONOMY

EUROPEAN banks were caught in a wave of new anxiety yesterday asdoubts over capital-raising plans andHungarys solvency caused investors todrop stock in the continents majorlenders.

Shares in UniCredit, Italys biggestbank, dropped 17.3 per cent to theirlowest level since 1985 as markets fretover its heavily discounted rights issue,which prices the stock at less than athird of its closing price on Tuesday.

And the debt crisis flared inHungary after the sovereign failed tofind enough buyers for 45bn forints(116m) of its bonds, pushing ten-yearyields to an eye-watering ten per cent.

The euro yesterday plunged to a 15-month low against the pound.

The news also increased the yield onAustrias bonds due to the large expo-sure of Viennas banks to Hungarianmortgage-holders, who are vulnerableas the euro strengthens against theforint, inflating their debts.

Austrias Erste Bank plunged nine

per cent and Raiffeisen Bank lost 6.3per cent as the forint dropped to arecord low versus the single currency.

The rest of Europes banks receiveda battering on the back of new debtworries, with Deutsche Bank losing 5.6per cent after being hit by rumours ofa rights issue.

The European Banking Authorityannounced last month that EU banksmust raise a total of115bn (94.9bn)in new capital in order to make up formassive write-downs on their sover-eign debt holdings.

UniCredit is the first to test marketswith a plan to raise7.5bn at a steep

discount. Although the issue is fullyunderwritten by an army of banksadvising on the deal, some sharehold-ers are reluctant to hold stock at signif-icant premium to the rights price.

It begs the question where the restof the 107bn capital ask for Europesbanks is going to come from... One [or]two rights issues like UniCredit willleave underwriters choked! said NewEdges Bill Blain.

British banks were relatively insulat-ed, as the EBA judged they do not needto raise any new capital. Barclays, thelargest faller, lost 2.5 per cent.

The squeeze on banks makes itincreasingly difficult for them to soakup debt from sovereigns. The Instituteof International Finance (IFF), anindustry group, warned yesterday thatbanks are being incentivised to ditchgovernment bonds by the EBAs deci-sion to write them down in stress tests.

It is likely that EU banks will con-tinue to reduce their exposure, it said.It follows the news that regulators aremulling scrapping the risk-free sta-tus of sovereign bonds in capital rules.

CREDIT SQUEEZE: P5

BY JULIET SAMUELEUROZONE

www.cityam.comIssue 1,543 Friday 6 January 2012 FREE

... but better data from UKand US provides some cheer

Certified Distribution31/10/11 till 27/11/11 is 100,007

BUSINESS WITH PERSONALITY

MARGIN CALLTICKETS TO THE

GLITZY PREMIERETHE CAPITALIST: P12

DOWNING STREEPMERYL SIZZLESAS THE IRON LADYREVIEWS: P18

EURO WOES RETURNWITH A VENGEANCE

Protesters in troubled Hungary are angry about changes to the constitution Pic: Getty

ANALYSIS l Yield on Hungarian10-year bonds soars

%

Aug Sep Oct Nov Dec 2012

11

10

9

8

7

10.4005 Jan

WIN

8/3/2019 Cityam 2012-01-06

2/24

News2 CITYA.M. 6 JANUARY 2012

Record auditfine for PwCBIG FOUR auditor PwC was fined arecord 1.4m by an industrial tribunal

yesterday for failing to scrutiniseaccounting practices at JP Morgan.

PwCs reports to the FinancialServices Authority from 2002 to 2006did not explain that JP Morgan waskeeping clients cash with its own,

breaching accounting rules. The bank failed to ring-fence an

average of 5.5bn during each year,and was fined a record 33m in 2010.

The Accounting and ActuarialDiscipline Board (AADB) took actionagainst PwCs UK division.

The AADB had been pushing for afine of anywhere between 5m and33m, whilst PwC believed 0.5m to1m was more appropriate.

As the auditor admitted responsibil-

ity, apologised, immediately ensuredthe appropriate training was carriedout and because no bank clients lostout as a result, the f ine was well belowthe level the AADB pushed for.

We are pleased that this matter hasnow been concluded. We regret thatone aspect of our work on the privateclient money report to the FSA fell

beneath our usual high standards,said PwC.

The previous highest fine came in1999 when Coopers and Lybrand werecharged 1.2m for their auditing ofRobert Maxwells media group.

BY TIMWALLACE

PROFESSIONAL SERVICES

NEW CLASHES BREW OVER TOBIN TAXBritain and France are set for anotherEuropean clash as Paris attempts toframe a new Eurozone financialtransaction tax in a way that is likelyto have a significant impact on theCity of London. President NicolasSarkozy of France wants to includethe so-called Tobin tax on the agendaof a European summit in Brussels on

January 30, putting him at odds withDavid Cameron, who is opposed tothe idea.

OFCOM PRESSED TO CURB BBCNews Corp is challenging Ofcom, the

broadcasting regulator, to include theBBC in any potential move to limitmedia ownership. In submissions toOfcoms review of media ownershipand plurality published yesterday, theBBC argued that it should be exclud-

ed from calculations because of itspublic service role.

CHINESE NEW YEAR: BUFFET TO SING Warren Buffett, widely revered in

China for his investment savvy, willsing and play guitar to celebrateChinas upcoming Lunar New Year ina specially recorded performance to

be aired online by state television.CNTV, the internet TV arm of CCTV,the state broadcaster, said the 81-year-old Mr Buffett had recorded a videofor a special Spring Festival gala per-formance to be aired online. MrBuffetts song choice was not dis-closed.

CATALONIA REJECTS BUDGET CONTROLSCatalonia has rejected plans by thenew Spanish government to imposestrict controls on budgets, accusingMadrid of trying to usurp the powersof the 17 autonomous regions. We

would consider as a red line anythinglooking like previous line-by-lineapproval of our budget proposals,

Andreu Mas-Colell, finance minister

in the Catalan government, told theFinancial Times yesterday.

RACE IS ON TO LOWER ENERGY PRICESBritish Gas is preparing to end a yearof runaway inflation in householdenergy prices by becoming the firstnationwide power company to bringdown its bills from their presentrecord levels. The Times has learntthat executives at the supplier areconsidering announcing a moderatecut before its parent company,Centrica, announces annual resultsnext month. Insiders believe a cut ofup to 10 per cent would be affordable.

REFERRAL SHADOWS WATER DEAL The future of mergers betweenEnglish water companies is set to betested after the Office of Fair Tradingcalled for a full investigation into the75 million acquisition of Cambridge

Water. The OFT has referred thetakeover by South Staffordshire

Water to the CompetitionCommission.

HAMMOND: DEBT THREAT TO SECURITY The defence secretary has used hisfirst major international speech tolink the economic situation to theability of Britain, America and theirallies to defend themselves. Speakingin Washington DC, Philip Hammondsaid: Without strong economic andstable finances it is impossible to

build and sustain in the long term themilitary capabilities requires to proj-ect power and maintain defence.

SHOPPING CENTRES TRACK MOBILESEquipment to track customers usingtheir mobiles is being used in morethan 30 major shopping centresincluding Lakeside in Essex,Manchesters Trafford Centre, andCabot Circus in Bristol. Its use has ledto privacy fears from groups such asBig Brother Watch that shoppers are

being spied on while they walkaround shopping centres.

SPAIN TO CRACK DOWN ON TAX FRAUDSpains new government said it willaccelerate public sector company clo-sures and launch a new plan to crackdown on tax fraud as part of its effortto slash a towering budget deficit. Thenew measures come after PrimeMinister Mariano Rajoys governmentlast week said the 2011 budget deficit

will be around eight per cent of grossdomestic product, amply surpassingits six per cent target.

PEPSICO WEIGHS JOB CUTSPepsiCo is weighing thousands of jobcuts as part of a broader review of its

beverage and snack businesseaccording to people familiar with thematter. PepsiCo lowered profit fore-casts last year as its struggling bever-age division, which includes itsflagship cola and Tropicana orange

juice, continued to lose market shareto rival Coca-Cola.

WHAT THE OTHER PAPERS SAY THIS MORNING

Welcome to 2012s two-speed world

ON the face of it, it would seem thatnothing changed during the holidayseason. Take some of the news intodays paper. Hungary is in ever-deep-er crisis, the euro reached another 15-month low yesterday and Eurozone

bank shares plunged, led by those ofItalys UniCredit. Important stuff, cer-tainly, but more of the same. It merelyshows that surprise, surprise conti-nental Europe remains the worldseconomic and financial basket caseand that its ongoing crisis will remainone of the central stories of 2012.

Yet there has in fact been an impor-

tant shift to the news flow. For thoseparts of the planet that arent saddled

with the useless single currency, thedata is no longer as gloomy. Welcometo a two-speed world. Global activity in

December was at a nine month high,according to the JP Morgan/Markit allindustry output index, which isderived from surveys of 11,000 pur-chasing managers in 30 countries.

It is obviously too soon to celebrate:the global trough came as recently asOctober 2011, when the index hit a 27-month low; its rebound in Novemberand especially in December is not yetenough to confirm that the trend haschanged. There are huge, potentiallydevastating challenges just around thecorner. But it is clear that for all itscontinuing and deep-seated structural

woes the all-important US economyis doing better. Americas manufactur-ing and services sectors grew at theirfastest rate for nine months inDecember, according to the JP Morganresearch; the jobs situation, while stillterrible, appears to be improving at

last. Growth also accelerated in theUK, India and Brazil, while activityindices for China and Japan edged

back into slight expansion. Russia con-tinued to report solid growth, albeit at

a slower rate.The UK figures are almost encourag-ing. The services sectors purchasingmanagers index rose to 54 inDecember, up from 52.1 in November(numbers above 50 suggest output isgrowing). The manufacturing and con-struction sectors also improved. The

better news over the past couple ofmonths may not be enough to rescueGDP in the final quarter of 2011

because of a terrible October. But a UKdouble-dip recession now looks far lesslikely than it did a few weeks ago, adevelopment which will come as arelief to George Osborne.

None of this is any justification fordeluded over-optimism. It is too soonto judge whether 2012 is off to a gen-uinely decent start, or whether themore positive surveys of the past cou-ple of months end up merely a flash in

the pan. The situation in Hungary isdeteriorating at an alarming rate; thefallout could devastate Austrias bank-ing sector, which is highly exposed tocentral Europe, and in turn inflict fur-

ther pain on the Eurozone. Myfavourite bearish statistic of the year sofar shows that UK manufacturing is

becoming increasingly (and seeminglypermanently and irreversibly) unprof-itable. The gross return on capital inmanufacturing fell from 7.1 per centin the second quarter to just 6.4 percent in the third quarter the lowestsince data began in 1989, according toCitigroup. Its not all bad: the rate ofreturn for service sector firms rose to15.9 per cent, the highest since late2008. But while parts of the economyare progressing, others remain dire.

The year ahead will be tough for theUK. Of that there cannot be any doubt.But maybe, just maybe, 2012 wont bethe catastrophe that many had feared.

We can but [email protected] me on Twitter: @allisterheath

JUST ONE union has rejected the latestplan to make NHS pensions moreaffordable without consulting theirmembers, with Unite describing theplans as pernicious yesterday.

Unite which represents 100,000health professionals, and aroundseven per cent of the NHSs workforce turned down the changes on the

basis that they make hard workingand dedicated NHS staff pay more,

work longer and get less.Union boss Len McCluskey called on

the government to start meaningfulnegotiations to maintain fair andequitable pensions.

But an NHS spokesman rejected theclaims, saying the changes make pen-sions affordable and sustainable.

The government has made clearthis is our final position on the mainelements of scheme design.

Other unions are consulting theirmembers before making their finaldecision.

BY TIMWALLACE

POLITICS

Unite rejects pension planUnite boss Len McCluskey sees new pensions arrangements as unfair

NEWS | IN BRIEF

Samsung set for record profitsSamsung this morning said its profitsfor the last quarter of 2011 would jump73 per cent to a life-time high, aided byrecord-breaking sales of its smart-phones. The South Korean firm, whichsurged past Apple as the world's topsmartphone maker in the third quarter,

said its quarterly operating profit wouldcome in at around $4.5bn (2.9bn). In2012 its smartphone sales are expectedto rise to as high as 170m units, accord-ing to BNP Paribas and KoreaInvestment & Securities. Samsungshandset division is now its biggest earn-ings generator, raking in record profits.

Blue Inc to take on D2 shopsBlue Inc, the fashion chain backed bySir Stuart Rose and the Reuben broth-ers, is set to buy up most of theremaining shops from collapsed retail-er D2 Jeans. The retailer will take onaround 20 of D2s outlets from admin-istrator BDO, according to reports. D2,which was formerly owned by billion-aire Sir Tom Hunter, was one of sever-al high street names to collapse intoadministration over the Christmasperiod.

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 EditorsCode of Practice, a copy of which can be found atwww.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]

PwC, now chaired byIan Powell, was fined aconsiderably loweramount than theAADB had wanted

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 Gavin BillennessPictures Alice Hepple

CommercialSales Director Jeremy SlatteryCommercial Director Harry Owen

Head of Distribution Nick Owen

EDITORS LETTER

ALLISTER HEATH

8/3/2019 Cityam 2012-01-06

3/24

Deutsche faces dismissal case

londonbedcompany.com

LA LUNA BABYLON

King size bedstead.

ASP 1,429 Sale Price 995 Extra 10% off 895

*Extra 10% off Sale prices at London Bed Company only.

ASP=After Sale Price. Mattress optional extra.

10%ffextra everything*THIS WEEKEND

DEUTSCHE BANK faces being taken toan employment tribunal by a formersenior executive in potentially embar-

rassing legal case, City A.M. can reveal. The executive, Craig Stokeld, isbelieved to allege that he is a whistle- blower in a mis-selling case thatcould have left clients open to largetax liabilities.

The bank denies the claims. Aspokesman told City A.M.: We havelooked into this matter with greatcare and found it to be without

merit.Stokeld is disputing his dismissal

from the bank in an attempt to getcompensation for loss of earnings,

which would likely have included mil-lions in salary, bonus and benefits

entitlements.The hearing, which was due to start yesterday, was postponed whilelawyers on both sides negotiated, butfailed to reach a deal.

Stokeld has worked for Deutschesince at least 2001, with stints in debtcapital markets including work oncomplex financial engineering.

In the past six years he has worked

for a string of Cayman-based business-es owned by Deutsche Bank, such asDB Sirius, DB Valiant and DB Jasmine.

He is bringing his case againstDeutsche Bank Services in Jersey,

which has a presence in the Cayman

Islands, Jersey and Mauritius.It specialises in private wealth man-agement, trusts and securities and,among other activities, sells complexstructured finance products to clientsthat include hedge funds and ultra-high net worth individuals.

A spokesman for Mr Stokelddeclined to comment. He is being rep-resented by Matrix Chambers.

DRAGONS Den star and serialentrepreneur Peter Jones hasthrown his hat in the ring forthe troubled outdoorgoods retailer BlacksLeisure, which was putup for sale last month.

Jones, who is on thepanel of the BBCreality TV show,

has emerged as one of the four tradebidders to have tabled an offer for

the company and its assets. He bidsagainst Sports Direct, controlled by billionaire football tycoon Mike

Ashley, its rival JD Sportsand an unknown party.

Administrator KPMGcould announce a pre-ferred bidder for thedebt-laden companytoday.

Dragon adds fire to fightfor Blacks Leisure storesRETAIL

News 3CITYA.M. 6 JANUARY 2012

UNDER-FIRE Swiss bank governorPhilipp Hildebrand yesterday insistedhe had no plans to step down, and

vowed to fight accusations of insidertrading that have been made againsthim with all means.

Speaking at a press conference inZurich yesterday afternoon,Hildebrand gave more details of thecurrency transactions made by his

wife that have whipped up a mediastorm in Switzerland and led opposi-tion politicians to call for his head.

The countrys top banker said hehad not breached any of the SwissNational Banks rules governing per-sonal trades, and was adamant his

wife an ex-hedge fund trader hadno knowledge of the SNBs plan tocap the Swiss franc when she boughtUS dollars last August.

But Hildebrand admitted thefurore over the trades had thrown aspotlight onto notoriously secretive

Swiss banking rules, and pledged tolook into introducing tighter controlsand more transparency at the bank.

He said he had waited beforeanswering questions because it hadonly recently become clear how theallegations against him had arisen,and that the reason for his silence

was a lack of information.Hildebrand denied that any short-

term currency speculation had takenplace, and said that the family portfo-lio the money had been traded from

was for long-term purposes includ-ing a property purchase that he says

was the reason the second dollartrade was made.

He also took the opportunity toattack the Bank Sarasin employeethat had leaked his personal files to alawyer representing an opposingSwiss political party, saying: I regretthat some circles, who for years haveregarded themselves as vehementchampions of Switzerlands banksecrecy, now have no qualms aboutserious violations of that secrecy.

BY ELIZABETH FOURNIER

BANKING

Defiant Swiss

bank boss: Iwill not quit

"So long as I have

the confidence ofthe government andthe bank council,stepping down isnot an issue for me."

Neither I, nor my

family have madeunauthorisedtransactions. Therewas no abuse ofprivilegedinformation.

The most impor-

tant lesson... isimprovement oftransparency inevery financialtransaction of theboard of the SNB.

Swiss central bankgovernor PhilippHildebrand saidhe hadnt doneanything wrong

BY JULIET SAMUEL

EXCLUSIVE

8/3/2019 Cityam 2012-01-06

4/24

THE ADMINISTRATOR of MF GlobalUK plans to start returning to clientsthe $1.2bn (774m) of cash and assetsfrozen at the collapsed broker asearly as this month, in a move thatwill placate customers ahead of theirshowdown with KPMG next week.

Richard Heis, KPMGs joint specialadministrator of MF Global UK, said:At the end of December we hadrecovered some 82 per cent of clientmonies and substantially all of theclient assets. We hope to commencethe return of client assets and an

interim distribution of monies asearly as this month.

The administrator said he is ini-tially talking with clients over thereturn of 30m of assets, in what would be the first returns toEuropean customers since the USfutures broker collapsed on 31October.

The pledge comes as KPMG and MFGlobal clients prepare for a meetingon Monday, which will see the bro-kers customers taking a vote of con-fidence on the administrator andappointing a committee to sign offKPMGs fee.

BIDDERS for much of the asset man-agement arm of Deutsche Bank areset to make initial offers by the endof this week.

They will make indicative bids which are not binding givingGermanys flagship lender a chanceto consider the level of interest andthe cash on the table.

The bank, which declined to com-ment on speculation, is likely tomake a decision on whether to pro-ceed with a sale of the businesses inthe next fortnight.

Up to 50 banks, insurers, assetmanagers and private equity housesare believed to have expressed aninterest. Last month sources saidBNY Mellon, Blackrock, JP Morgan,Goldman were among interestedparties to have been given informa-tion on the assets.

Deutsche has long been thoughtto lack the scale to compete in assetmanagement and a deal for the non-core businesses could raise between1bn (826m) and 3bn.

It began a strategic review ofmuch of its 516bn asset manage-

ment arm in November, promptedby changing conditions in the indus-try, including regulatory reforms.

The review covered Deutschesinstitutional investor business, DB Advisors; its alternative asset busi-ness RREEF; an insurance asset man-

agement business; and its DWSInvestments mutual fund businessin the Americas.

It excluded, however, privatewealth management and DeutschesDWS franchises in Germany, Europeand Asia, which are the most prof-itable parts of the banks asset man-agement segment.

Deutsches last results showed aforecast-beating third quarter pre-tax profit of942m.

Bidders eyeup Deutschesarms for sale

MF Global UK clients set to getback cash this month KPMG

BY PETER EDWARDS

ASSET MANAGEMENT

FINANCIAL SERVICES

BANKS reaped more in privateequity fees last year than at anypoint since 2007, Dealogic figuresrevealed yesterday.

The most lucrative client wasKohlberg Kravis Roberts, whichpaid $587m (379m) of the $12.4bnpaid globally up 14 per cent fromthe $10.8bn paid in 2010, andaccounting for 18 per cent of total

investment bank revenues. KKRhad been the sixth largest fee-payerin 2010.

Mergers and acquisitionsaccounted for $3.1bn of revenues the highest level since 2007 and upnine per cent on those seen in2010.

Bain Capital Partners came aclose second to KKR, generating bank revenues of $540m, while2010s biggest fee-payer the Carlyle

Group dropped to third place with$536m.JP Morgan was the biggest recipi-

ent of revenues, taking $1.15bn or9.3 per cent of the market, withBank of America Merrill Lynch insecond place with $1.03bn, or 8.3per cent.

Goldman Sachs slipped from itstop spot in 2010 to third place, tak-ing home $1.01bn, or 8.2 per cent,in 2011.

Private equity fees boomedto pre-recession levels in 2011

PRIVATE EQUITY


KKR headed byHenry Kravis paid the mostfees to bankersPicture: REUTERS

ANALYSIS l Deutsche Bank AG

30 Dec 2 Jan 3 Jan 4 Jan 5 Jan

30.50

29.50

30.00

29.00

28.50

28.00

27.975 Jan

8/3/2019 Cityam 2012-01-06

5/24

WORSENING wholesale funding con-ditions are having the biggest impacton credit conditions for British com-panies since the end of 2007, accord-ing to the Bank of Englands latestsurvey of the UK credit landscape.

The Bank said that the vast majori-ty of non-financial corporates sur-

veyed blamed tighter wholesalefunding conditions for a deteriora-tion in credit availability in the lastthree months.

The data showed a net balance of42.6 per cent of those asked in thefourth quarter of 2011 said the stateof wholesale markets has had a nega-tive impact -- a huge upswing from anet balance of 19 per cent that said soduring the previous quarter.

An even larger balance of respon-dents 49.4 per cent expect whole-sale markets to cause creditconditions to worsen even furtherover the next three months.

The Bank said: The...survey showedthe largest net balance of respondentsreporting a negative impact of whole-sale funding conditions on creditavailability since 2007.

The data show that the squeeze on bank funding has worked its waythrough to affect conditions for largecompanies and is undermining theirconfidence at an accelerating pace.

In a sign of the growing impact ofthe European collateral crunch, a vast

balance of 62.7 per cent also antici-pate a worsening of credit conditionsdue to lenders need to feed cash intoissuances of asset-backed debt andmoney market funds. Banks have hadincreasing difficult selling unsecureddebt over recent months.

But the scale of the crunch has yetto feed through to smaller companies.

While a balance of four per cent ofthe smallest firms reported a worsen-ing of conditions, most medium-sized

businesses at a positive balance ofalmost 10 per cent said that creditavailability had improved.

Lenders reported that default rateshave slowed among their clients,although the bankruptcies that dooccur are getting more expensive.

Admittedly, [lenders] still expectedto increase the availability of creditslightly, said Capital Economics. Buteven if this is the case, lenders report-ed a drop in demand for credit, whichthey expect to continue.

Credit crunch

hits Britishcorporates

FRANCE successfully sold 8bn(6.6bn) of its debt at a closely-

watched auction yesterday, but its borrowing costs edged higher andinvestor demand for its 10-year debtdropped sharply.

France, which has been plagued byfears it could lose its much-covetedtriple-A debt rating, sold 4.02bn of

10-year Oat bonds with yields up to3.29 per cent, slightly higher than the3.18 per cent it paid last month.

Demand for the 10-year paper fellsharply, with the auction drawing

bids worth 1.643 times the amounton offer compared to 3.046 times at asimilar sale in December.

Frances debt sale followed a simi-larly uncertain auction of German

bunds on Wednesday, where investorsbought just 4bn of the5bn on offer.

Marc Ostwald, a strategist atMonument Securities, said: All in all,reasonably solid cover. It was alwaysgoing to look much better than theBund, simply because you are on com-pletely different yield level.

However, Frances successful debtauction failed to boost investor senti-ment, which was dragged lower byfears that Hungary could default onits debts and escalating concerns overEurozone bank funding.

France sells 8bn of bondsbut investor demand wanes

HEALTH and safety rules are a mon-ster which damage the economy andthe government must try to kill offthe culture for good, Prime MinisterDavid Cameron told an audience ofsmall business owners yesterday.

Cameron also called for large firmsto pay their fair share of tax, joiningthe Deputy Prime Minister Nick Clegg

who continued his campaign againstcrony capitalism and excessive exec-utive pay.

The excessive health and safety cul-ture has become an albatross around

the neck of British businesses, saidthe PM, arguing that some rules need

to be scrapped, while others need to beimplemented more reasonably.

A cap will be introduced on theamount lawyers can charge in no-winno-fee offers as part of an effort to ridthe UK of the pointless time-wastingculture of health and safety, he said.

Meanwhile Clegg called foraccountability on unacceptableexcess in executive pay where peopleare being paid huge amounts ofmoney even though they fail to do wellfor those companies.

Both hit out at firms and high-earn-ers who abuse the tax system to payas little as possible. Clegg told the BBC

he favoured a general anti-avoidancerule to clamp down on the practice.

Twin clamp-downs on health andsafety culture and tax avoidance

BY JULIET SAMUEL

ECONOMICS

POLITICS

BYDAVID CROWEUROZONE


Sir MervynKings Bank ofEngland is waryabout fundingPicture: PA

8/3/2019 Cityam 2012-01-06

6/24

BROKER Tullett Prebon yesterdaytried to reassure investors worriedabout the effect of global market tur-moil on the City by unveiling a seriesof cuts it carried out late last year.

The interdealer broker said lastyears efforts to slash costs thoughtto include the loss of about 80 bro-kers in the US, Asia and Europe would lead to a 10m charge for the2011 results. More savings are set tofollow in the first half of this year.

Tulletts decision to break with tra-dition and make a pre-close state-ment comes against a gloomybackdrop for the industry, which hasbeen hit as banks cut their appetitefor risk.

Yesterday Tullett, which acts as amiddleman in securities dealsbetween investment banks, said: The worlds financial markets haveremained unsettled throughout theyear. There have been periods of mar-ket volatility and heightened activity,although there have also been peri-ods of more subdued activity.

Numis analyst James Hamilton saidthe cost-cuts reflect the very diffi-cult operating environment facing

the broker and warned that an eco-nomic recovery and interest rate risesremained distant prospects.

The over-the-counter model, howev-er, remains robust, it added.

Tullett, which was spun out ofstockbroker Collins Stewart in 2006and is led by Terry Smith, said last years sales are likely to be in linewith the 908.5m reported for 2010.

Both Tullett and Icap, as well asrivals BGC Partners and GFI Group,which match the buyers and sellers of bonds and swaps, hope regulatorychanges in the US and Europe willboost their businesses.

Shares in Tullett inched up 0.22 percent last night to close at 271.8p. Itsannual results will be published on 6March.

THE FORMER head of Olympusreturned to Japan yesterday, butannounced that he was no longerfighting to replace the firms manage-ment.

Michael Woodford (pictured), who was fired as chief executive inOctober and blew the whistle on a$1.7bn (1.1bn) accounting scandal,

had faced long odds in his battle withmanagement.

Despite my having donethe right thing, none of themajor Japanese institutionalshareholders have offeredone word of support tome, Woodford said in astatement sent out thismorning.

The decision leavesforeign shareholderswho want a new slateof directors, includ-

ing US fund manag-er Southeastern

Asset Management, without a cham-pion to lead any proxy battle whenthe company convenes an extraordi-

nary shareholders meeting asearly as March.

Olympus lenders wereexpected to back existingmanagers with a plan to bring in a new domestic

investor, possibly a rivalsuch as FujifilmHoldings, to pump more

capital into the firm,according to bankers.

Woodford back in Japan but ex-chiefabandons his bid to win back old job

CHINA Development Bank and Japans Sumitomo Mitsui FinancialGroup are slugging it out in the finaldays of an auction for Royal Bank ofScotlands aircraft leasing business ina deal that could fetch up to $7.5bn(4.8bn), a source with direct knowl-edge of the matter said yesterday.

RBS, 83 per cent-owned by theBritish government, is shedding RBS

Aviation Capital as part of efforts topay back a 2008 bailout.

The RBS Aviation auction reachesits final stages as RBS begins a largerprocess to pare back the size of the bank, including scaling back itsinvestment banking arm.

For the RBS Aviation auction, adecision on the winner is expected byearly next week, said the source, who was not authorised to speak to themedia, with a sale price in a range of$7.3bn to $7.5bn.

A second source said US bank Wells

Fargo was also still involved in theauction. RBS declined to comment.

Asian banks fight to buyRBSs 5bn aviation arm

BANKING

RYANAIR suffered a five per cent dropin passenger numbers in Decembercompared to last year, after it ground-ed up to 80 aircraft to offset higherfuel costs.

But the low-cost carriers annualtraffic has risen 5.1 per cent to 76.4min spite of the bigger-than-usual stop-pages.

Ryanairs load factor, a measure ofhow many available seats are paid foron its flights, slipped one percentage

point to 79 per cent last month.British Airways parent IAG fared bet-

ter in December, with passenger num-bers up 10 per cent to 3.88m after a boom in European and North American flights, as well as betterweather conditions than last year.

IAG said traffic in 2011 rose 2.1 percent overall, with a jump in passengersacross the Americas offsetting a 12.5per cent tumble in UK and Spanishdomestic flights.

Its cargo division also enjoyed a 6.4per cent rise in annual revenues.

Ryanair traffic dips afterfuel cost grounds planes

TRANSPORT

KAZAKH miner ENRC has agreed a$1.25bn (800m) settlement with

Canadas First Quantum Minerals toend a long-running dispute over own-ership of the Kolwezi project in theDemocratic Republic of Congo.

The London-listed miner said yes-terday the deal would enable it tostart developing its operations at thecopper-cobalt Kolwezi Tailings proj-ect.

ENRC will pay $750m plus adeferred consideration of $500m aspart of the settlement with First

Quantum, the former owner ofKolwezi until its licence was revokedby the DR Congo in 2009.

The dispute had been expected togo to trial after a court upheld First

Quantums $2bn claim for dam-ages for the revoked Congoasset in September.

Shares in FTSE 100-listedENRC lifted by around fourper cent after the announce-ment of the settlement.

The licence was boughtby ENRC from the Israeli businessman DanGertler (pictured) in2010.

Throughout, I have said thatthere was absolutely nothing dodgyabout the Kolwezi transaction weconducted the most due diligence Ihave ever seen on a transaction and

the noise coming from FirstQuantum was intended wholly todrive up the price of the inevitablesale of the plant and equipment,said former ENRC non-executivedirector Ken Olisa last night.

Olisa always defended ENRCsposition on the Kolweziownership dispute but hewas voted off the board lastyear by the groups control-ling shareholders.

ENRC settles Congo disputeBY JOHN DUNNE

MINING

Tullett cuts

80 brokersamid turmoilBY PETER EDWARDS

FINANCIAL SERVICES

BYHARRY BANKS

TECHNOLOGY


Chief exec Terry Smith moved to reassure investors by announcing cost cuts

NEWS | IN BRIEF

Blockbusters boost CineworldMovie giants such as The Kings Speech,the latest Harry Potter instalment andTwilight helped UK cinema chainCineworld post a revenue increase of 1.5

per cent last year. While suffering salesof 3D glasses and a fall in screen adver-tising will bring other income down,Cineworld is looking at a rise of 2.7 percent in its net box office takings largelyin line with industry performance.

Nokia eyes a new chairmanFinnish mobile phone company Nokia issaid to have its eyes on Risto Siilasmaato succeed its current chairman JormaOllila. Siilasmaa, who has sat on Nokiasboard since 2008, is the founder andchairman of Finnish software makerSecure and chairman of telecoms firmElisa Oyj. The decision is awaiting confir-mation from the board and is expectedto be announced alongside Nokiasfourth quarter results on 26 January.

Fiat drives towards ChryslerItalian car maker Fiat is one step closerto merging with Chrysler after it raisedits stake in the struggling automotivegroup from 53.5 per cent to 58.5 percent, paying approximately $2bn(1.29bn). Chrysler filed for bankruptcy in2009, leading President Obama to insti-gate a turnaround plan between the twocompanies. Healthcare trust VEBA ownsthe other 41.5 per cent.

Tata could move plants to IndiaRatan Tata, the retiring head of the Tataconglomerate, said his firm could movesome of its car production to India orChina. He told a conference that TataMotors, which makes Range Rovers andJaguars in the UK, could at some stageshift its manufacturing to capitalise on agrowth spurt in emerging markets. Healso conceded the Nano, lauded as theworlds cheapest car when launched in2008, had delivered disappointing sales.

Broker sees trouble ahead as clientsstay on the sidelines during Eurosaga

TULLETT Prebon boss TerrySmith must have seen almosteverything in his 35-plus yearsin the City.

Even this veteran must have beensurprised, however, by the gloom which gripped the City late last year, perhaps explaining whyTullett cut around 80 brokers in thesecond half equivalent to five percent and warned of furtheractions to come in 2012.

What it appears to tell us is thatSmith wants to avoid being tarred with the same brush as globalleader Icap, which seven weeks agoposted a dip in earnings for the sixmonths to September.

Market conditions have hardly

improved since Tullett took the axeto its brokers but yesterday sourcessaid people had expected things tobe worse [at Tullett] than they are.

Analysts were divided on theupdate and the brokers shareshardly moved, reflecting the factthat Tullett remains at the mercy ofunsettled markets in theEurozone and beyond.

Smith is rarely lost for words but,for once, this straight-talker willhave to simply sit tight and wait tosee how the interminable Eurosagaplays out in the City.

BOTTOMLINEAnalysis by Peter Edwards

ANALYSIS l Tullett Prebon PLC

p

29 Dec 30 Dec3 Jan 4 Jan 5 Jan

280

275

270

265

271.805 Jan

8/3/2019 Cityam 2012-01-06

7/24

8/3/2019 Cityam 2012-01-06

8/24

A TRIO of top executives at CoveEnergy are in line to share a pot oftens of millions of dollars after thecompany was officially put up for saleyesterday.

Chief executive John Craven andexecutive chairman Michael Blahawill share most of the payout.

Michael Nolan, Coves financedirector, will pocket the rest. Theprice tag on the company is estimatedat up to $1bn (645.2m).

If all their options are exercised,the management will own five percent of the company.

BP, Shell and Exxon Mobil are beingtipped by analysts to take an interestin the Aim-listed explorer, whichoperates in East Africa.

The jewel in Coves crown is its 8.5per cent interest in the Rovuma Area1 block off the shore of Mozambique,part of a project led by AnadarkoPetroleum. Cove also has assets offthe shores of Kenya and Tanzania,

although these are less developed.The company said in December it

had offered data to parties who hadexpressed an interest in acquiring its8.5 per cent stake in the Rovumablock.

Rovuma Area 1 represents a sub-stantial portion of Coves asset valuewithin the portfolio of focussed andcomplementary assets which thecompany has built in East Africa,Cove said in a statement. As suchthe directors have unanimouslyagreed that a sale of the companymay be appropriate at this time.

Three bossesat Cove in linefor a windfall

Cove chief exec John Craven is in line for a big payout from any sale Picture: REUTERSBY JOHN DUNNE

ENERGY


ANALYSIS l Cove Energy PLC

p

29 Dec 30 Dec3 Jan 4 Jan 5 Jan

125

120

115

110

124.755 Jan

CENKOS resources expert Joe Nally is

the leading adviser on the Cove sale.The London School of Economics-

educated executive joined Williamsde Broe in 1976 as an investmentanalyst covering property and insur-ance companies.

He went on to become an institu-tional salesman, covering a widerange of institutions in the UK andEurope. In 1992 he was a founder ofthe institutional corporate financedepartment at Williams de Broe

where he gained extensive experienceacross a broad range of sectors inIPOs, secondary fund raising andtakeovers and mergers, particularlyin natural resources.

Over the past five years, he hasbrought a considerable number ofmining and oil and gas companies to

the market and raised further fundsin the secondary market. InNovember 2010 Cove raised 110mvia a placing of 145m new shares at76p each, with Nally the lead adviser.

His biggest deal to date has beenWalter Energys C$3.3bn (2bn)merger with Canadian mining groupWestern Coal. He has advised Coveon a number of successful placingsand is a well known City veteran witha strong track record.

ADVISER: CENKOS SECURITIES

JOE NALLY:SENIORMANAGERNATURALRESOURCES

NEWS | IN BRIEF

Balfour Beatty bags 750m dealBuilding group Balfour Beatty yester-day clinched a five-year contract worthup to 750m to upgrade Britain's elec-tricity transmission network. The workinvolves maintaining and refurbishingoverhead transmission lines, as well asdesigning and implementing National

Grid's network upgrade plans. The com-pany has an existing contract to carryout some work for the National Grid.This week Balfour was also named pre-ferred bidder for an 800m contractto run a rubbish and recycling projectin Essex.

Costain ends year on trackCostain said yesterday that it finishedthe year strongly and has an orderbook worth 2.5bn. The civil engineer-ing group said it had targeted majorpublic and private sector customersand secured significant new contractsduring the year, including the LondonBridge Station redevelopment forNetwork Rail and Crossrail PaddingtonStation. The company increased itsbanking facilities by 30m to 465mand extended by two years toSeptember 2015.

Petrofac in Schlumberger tie-upBritish energy services firm Petrofacsaid yesterday it will team up withSchlumberger, the worlds largest oil-field services company, to help it bidfor bigger projects with national oilcompanies and other firms. The pairhave signed a co-operation agreementwhich will let them work together onprojects to help resource holders suchas national oil companies develop andenhance production from their oil andgas fields.

8/3/2019 Cityam 2012-01-06

9/24

8/3/2019 Cityam 2012-01-06

10/24

PZ CUSSONS, the company behindImperial Leather shower products, is toadd haircare business Fudge to its beau-

ty range in an attempt to cash in on thegrowing male grooming market.The company, which is also responsi-

ble for St Tropez, Sanctuary and CharlesWorthington products, will pay privateequity firm Sabre 25.5m for the

Australian hair styling brand before theend of the month.

Fudge generated 15.7m of revenuein the financial year to 30 June 2011,

with sales split evenly between Europeand Australasia.

SPORTS retailer JJB, which was on theverge of collapse last year, has battledits way through the crucial Christmasperiod, reporting a five per cent lift inlike-for-like sales in December.

JJBs second-half like-for-like salesfell by 7.8 per cent while margins fell

by 3.2 per cent, it said yesterday.But this was still an improvement

compared to a dire first half, whensales slumped by 17.7 per cent slumpand margins dived by 31.7 per cent.

Chief executive Keith Jones, whowas parachuted in almost two yearsago to turn around the retailer, said:Our overall trading has improved inthe second half of the financial yearand we achieved a Christmas tradingperformance broadly in line with ourexpectations in the face of an extreme-ly challenging consumer environ-ment.

The Wigan-based firm was rescuedfrom administration by a deal with itslandlords in March the second intwo years which allowed it to close 43poorly performing stores and cut rent

payments by as much as 55 per centon others.

The company is banking on a num-ber of critical trading periods, includ-ing the January sales, Europeanfootball championships and LondonOlympics, to get back on track.

JJB, which employs 4,600 people andruns 195 stores across the UK andIreland, faces stiff competition fromrivals like Sports Direct, which hasfared better in the current climate.

The groups better-than-expectedsales cheered the market yesterday,sending shares soaring 37.5 per cent to7.7p.

JJB enjoys an

uplift in salesfor Christmas

SUPERMARKET Waitrose said yesterdayit had seen Christmas sales jump this

year. The shops, part of the John LewisPartnership, saw a 3.5 per cent jump inlike-for-like grocery sales in December.In the week leading up to New Year,total sales rose by 9.7 per cent on last

year. Among the big sellers were items

from celebrity chefs Delia Smith andHeston Blumenthal, includingBlumenthals Hidden Orange andClementine pudding and SmithsClassic Christmas Cake Ingredients box.

Heston helps toboost Waitrose

PZ Cussons setto buy up Fudge

BYKASMIRA JEFFORD

RETAIL

RETAIL

MANY US store chains had to offerdeep discounts to entice shoppersover the holiday selling season, cut-ting into profits even as overallDecember sales came in slightlyabove expectations.

JC Penney yesterday cut its quar-terly profit forecast, citing highermarkdown activity, and its sharesfell 2.7 per cent. Kohls also cut itsholiday-quarter profit outlook after

a disappointing December and a dis-

astrous sales decline in November.Privately-owned Toys R Us alsosaid sales fell over the key holidayperiod. The worlds biggest toys spe-cialist, which is looking to go publicthis year, reported a 1.2 per cent risein December sales at established USstores, but total sales dropped.

Turnover at Target and Costcorose over Christmas, but missed fore-casts, and Gaps same-store takingsfell four per cent.

But Macys, which expanded its

late-night hours to more stores inthe final days before Christmas andcarried more exclusive goods,reported a better-than-expected 6.2per cent rise in December sales andraised its outlook for the quarter.

The consumer is in the driver'sseat -- they have the power, saidDavid Bassuk, head of AlixPartnersretail practice. Well still see aggres-sive promotions in the next sixmonths.

US retailers slash prices tolure festive bargain-huntersRETAIL


ANALYSIS l JJB Sports

p

29 Dec 30 Dec 3 Jan 4 Jan 5 Jan

6.50

6.75

7.00

6.25

6.00

5.75

5.50

5.25

7.705 Jan

ANALYST VIEWS: DO JJBS RESULTS SHOW

SIGNS OF IMPROVEMENT? Interviews by Kasmira Jefford

FREDDIE GEORGE | SEYMOUR PIERCE

Although trading improved over Christmas against very easy comparatives,management, in our view, is running out of time to turn this business around.It needs to find a clear niche and a format, differentiated from its competitors.

PHILIP DORGAN | PANMURE GORDON

This trading statement probably exceeds market expectations. That said,despite the fact that we are only marginally changing our forecasts, the dete-riorating consumer environment suggests that the recovery will be slower.

JAMES DILKS-HOPPER | NUMIS

While the performance to date through the second half is marginallyahead of our expectations, we maintain our profit before tax forecastahead of the January sales and remain neutral.

BY JAMES STEVENSON

RETAIL

8/3/2019 Cityam 2012-01-06

11/24

8/3/2019 Cityam 2012-01-06

12/24

8/3/2019 Cityam 2012-01-06

13/24


Old MutualOld Mutual has appointed Ian Gladmanas group strategy director. Gladman,who will be a member of the groups

executive committee, previously workedat UBS Investment Bank where hespent 16 years, most recently as co-head of financial institutions, EMEA,

covering a range of UK and Europeaninsurance companies, banks and assetmanagers.

Barclays WealthThe wealth manager has appointedPaul Fleming as director, head of

strategic partnerships to work acrossthe UK & Ireland private bank, interna-tional private bank and the wealthadvisory division, based in London.Fleming joins Barclays Wealth fromPwC, where he was most recently headof strategic partnerships.

Lloyds PharmacyThe pharmacy chain has appointedPhil Streatfield to the board-level posi-

tion of supply chain and business effi-ciency director. He joins from SpicersEurope, where he was European sup-ply chain and IT director.

MGM AdvantageThe retirement income specialist has

appointed Jim Roberts as a non-execu-tive director and chairman of theinvestment committee. Roberts spent26 years at Skandia Group, includingpositions as appointed actuary, financedirector and group investment director.

Bryan, Garnier AMBryan, Garnier Asset Management hasappointed Steve Wallace as managingdirector responsible for commercial

activities and will be part of the seniormanagement team and investmentcommittee, based in London.

Alliance TrustKarin Forseke has been appointed asnon-executive chairman to succeed

Lesley Knox. Forseke will join the boardof the company on 1 March and willbecome chairman on 2 April. Forsekeholds a number of non-executive direc-torships, including deputy chairman andsenior independent director of the FSAand a non-executive director ofWallenius Lines AB. Previous rolesinclude CEO of D Carnegie & Co AB andCOO of the London InternationalFinancial Futures and Options Exchange.

CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys

+44 (0)20 7092 0053morganmckinley.com

To appear in CITYMOVESplease email your careerupdates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT

in association with

Banks gain on USeconomic optimism

BANKS led Wall Street to gains yes-terday even as Europe struggledagain, a sign investors are bet-ting a relatively strong US econo-

my will help US stocks outperformother markets.

Overall gains were small, but banksadvanced for a third day, supported bybetter-than-expected economic data.

US financial shares continued todelink from their European peers asinvestors see more potential forgrowth in US lending that could off-set worries about the Eurozone debtcrisis.

The KBW bank index rose 2.2 percent, extending the weeks advance toabout six per cent. Bank of Americajumped 8.6 per cent to $6.31.

While you do have the Europeanissues, the US banks do have some off-sets, said John Manley, the New York-based chief equity strategist at WellsFargo Funds Management. There aresigns of potential stability in the hous-ing market and US banks are probablybeing helped by that.

Traders initially focused on heavylosses in European bank shares, led by

UniCredit. Italys largest bank has lostmore than 30 per cent of its value this

week after it priced a share offeringmeant to shore up its ravaged balancesheet. Other European bank sharesfell, and an index of the regionslenders tumbled 3.24 per cent.

But Manley warned that the prob-lems with bank stocks still linger. Bankstocks can do well in the very longterm, they are cheap stocks, but theyare cheap for reasons that will not goaway any time soon, he said.

The Dow Jones industrial averagedipped 2.72 points, 0.02 per cent, to12,415.70. The S&P 500 Index gained

3.76 points, 0.29 per cent, to 1,281.05. The Nasdaq Composite added 21.50points, 0.81 per cent, to 2,669.86.

Data yesterday pointed to a strength-ening US economy. More than twicethe expected number of private sector jobs were added in December whileinitial jobless claims dropped 15,000 inthe latest week. In addition, the paceof US services growth quickened morethan expected in December.

The S&P 500 closed above its 200-daymoving average for a third straightday. It was the first time the index has been able to hold above the movingaverage that long in five months. Butrelatively low volumes could under-mine the upbeat technical picture.

The S&P retail index edged up 0.4per cent as December same store salesrose slightly more than expected,though discounts cut into profits overthe holiday shopping season. Targetfell three per cent to $48.51 whileMacys added 3.9 per cent to $33.92.

BRITAINS blue-chip share indexclosed lower yesterday ongrowing fears that Eurozonecountries and banks could

struggle to tap markets this year. The FTSE 100 dropped 44.19

points, or 0.8 per cent, to close at

5,624.26, in tandem with mostEuropean indexes and the euro cur-rency, after a French debt auction,though oversubscribed, failed toallay fears about the debt crisis onthe continent.

The single currency slumped to itslowest level against the dollar sinceSeptember 2010 on tensions ahead ofSpanish and Italian auctions next week and signs of weakness inEurozone banks, notably ItalysUniCredit, which slumped for a sec-ond day after announcing a massivediscount on a rights issue onWednesday.

The euro is really not helping atthe moment; every time it tries torally, its getting a slap, and that isreally putting a damper on equities,said David Morrison, market strate-gist at GFT Global.

The FTSE 100 sent a bearish signal

as it closed below the full retrace-ment of its mid-December fall,

which had been offset by a thin-vol-ume rally over the Christmas period,helped by upbeat data from theUnited States.

Its risk-on, risk-off trade at themoment, and the big pop up that wehad at the beginning of the year wasan opportunity for a lot of traders togo short, and now theyre taking it,GFTs Morrison said.

Concerns that an escalating debtcrisis in the Eurozone would drag onthe worlds economy pushedinvestors out of cyclical stocks.

Vedantawas the top blue-chip fall-er, dropping 5.2 per cent as minerstracked a decline in copper prices,which depend heavily on economicactivity.

At the other end of the FTSE tablewas Eurasian Natural ResourcesCorp, which rose 4.6 per cent on vol-ume more than two times its 90-dayaverage on news it will receive$1.25bn from Canadas FirstQuantum Minerals to end a disputeover a project in the DemocraticRepublic of Congo.

Silver miner Fresnillo was one ofthe biggest risers, gaining 3.3 percent.

Chip designer ARM Holdings alsooutperformed, rising 2.6 per cent asUBS placed a short-term buy ratingon the group, which it expects topost estimate-beating fourth-quarterresults thanks to strong sales of

high-end phones.With solid smartphone/tablet

sales, we expect solid performancethrough results vs those exposed toweaker-end markets, UBS said.

By contrast, heavily subsidisedsales of smart phones in the UnitedStates were set to dent the quarterlymargins of Verizon, a mobile opera-tor jointly owned by Vodafone Groupand Verizon Wireless, the joint ven-tures chief executive, Fran Shammo,said.

Smartphone sales pressure mar-gins because operators pay highersubsidies to offer advanced phones

at discounted prices. In exchange,consumers must sign a two-year con-tract.

Shares in the UK-listed telecomsoperator Vodafone fell 1.5 per cent,making them the largest single dragon the FTSE 100, knocking off 5.2index points.Petrofac gained 1.9 per cent afterthe oil group unveiled a tie-up withSchlumberger, the worlds largestoilfield services company, to bid fornew projects.

Fresh nerves over euro debtput dampers on FTSE indexTHELONDONREPORT

THENEW YORKREPORT

BEST OF THE BROKERS To appear in Best of the Brokers email your research to [email protected]

ANALYSIS lOrascom

38

40

42

36

34

Nov Dec Jan

$

32.865Jan

ORASCOMAfter the company announced a demerger of its fertiliser and constructionbusinesses, Morgan Stanley rates the Egyptian construction group as over-weight with a target price of $49. The demerger will see OCI hold the fer-tiliser business, while the demerged company will hold the constructionsegment. Each shareholder will receive one share in the demerged company,with the deal expected to complete in the first quarter of this year.

ANALYSIS lARM Holdings

600

625

575

550

Nov Dec Jan

P610.00

5Jan

ARM HOLDINGSUBS introduces a short-term buy on the Cambridge-based chipmaker butremains neutral in the long-term, to reflect imminent catalysts includingIntel accelerating its roadmap and expected announcements of new prod-ucts from Samsung and Broadcom. The brokers latest estimates suggestfourth quarter revenues up to six per cent ahead of consensus, and up to 14per cent ahead on earnings before interest and tax.

ANALYSIS lBAE Systems

270

280

290

260

250

Nov Dec Jan

p

287.005Jan

BAE SYSTEMSJP Morgan rates the UK defence company as neutral and reduces its tar-get price from 302p to 297p after a number of announcements lastDecember and this year that may have a negative impact on 2011 underly-ing earnings and cash. The broker says the lack of a Saudi signatureannounced earlier this week is likely to mean 300m more in debt, and amiss on earnings before interest, taxes and amortisation of around 80m.

p

28 Oct10 Oct 17 Nov 7 Dec 29 Dec

5,800

5,200

5,400

5,000

5,600

ANALYSIS l FTSE5,624.26

5 Jan

Plethora Solutions HoldingsJames Mellon has been appointed as a non-executive director of the urological productsdeveloper. Mellon started his career with GTManagement, and later became the co-founderand managing director of Thornton

Management (Asia), based in Hong Kong. He isalso co-founder of Regent Pacific Group andCharlemagne Capital, chairman of ManxFinancial Group, Speymill and Rivington StreetHoldings, and co-chairman of Regent PacificGroup and West African Minerals Corporation.

8/3/2019 Cityam 2012-01-06

14/24

THIS isnt a review of The Iron Lady, starring

Meryl Streep as Margaret Thatcher and ongeneral release in cinemas this week [Forthis, see p. 18]. Im sure its a fine film and Ill

see it once I can scrape together the money frommy dwindling pension for a pair of tickets andsome wax earplugs to counter the loud volumein our local cineplex. Im sure Maggie wouldunderstand.

The advance marketing for the film has beenaggressive, featuring special screenings a coupleof months ago for select commentators whothen had an excuse to vent old spleens about theIron Ladys rule. Over 21 years after her depar-ture, the embers of hate still glow red beneathaccumulated layers of cold ash. Round my local,theres one old geezer promising the biggeststreet party upon her death.

What is it about Thatcher that still polarisesthe entire nation into one extreme camp or theother? For her haters, did she destroy a goldenage of peace, harmony and prosperity? Thats nothow I remember the 1970s. For her acolytes, didshe build a new Jerusalem of limited govern-ment? At best, she slowed its growth but it wasstill bigger than when she started and has grownever larger since.

Twenty years from now, will Tony Blair orBarack Obama still be vilified as devils or wor-shipped as saints? Interestingly, her contempo-rary Ronald Reagan at the time was prettydivisive over similar policies but it didnt takelong after his departure for airports, schools,highways and aircraft carriers to be named afterhim. Maybe he was just a nicer guy.

Streeps portrayal of Thatcher posed a realproblem for her self-professed loathers grantedthat sneak preview of the film. They reluctantlyconceded Thatchers struggle as a middle classfemale against an entrenched establishment ofprivileged old men, but quickly dismissed heraccomplishments in office and reiterated theirrejection of everything she stood for.

Everything? This is where the Thatcher-as-Satan camp is vulnerable. If it was all so bad whyhavent four succeeding prime ministers even

begun to reverse her legacy? Lets take a look at

some of her accomplishments. The top tax rate was 83 per cent when

Thatcher came in and 40 per cent when she left.The dying Brown administration did hike it to 50per cent in a last ditch political ploy that the cur-rent regime hasnt the courage of its convictionsto rectify. Still, I dont see the Thatcher rejection-ists clamouring for 83 per cent again, probablybecause it would hit them as well and they reallydont want The Rolling Stones decamping to for-eign climes again.

Thatcher led the world on privatisations fromairlines to gas to oil to telecoms to electricity toyou name it. Yes, the rail network has been rena-tionalised but that botched privatisation wasntone of hers. Again, the rejectionists arent clam-

ouring for more nationalisations. Perhaps,Northern Rock, Royal Bank of Scotland andLloyds are giving pause for more thought on this.

Then there was Thatchers faith in competi-tion and innovation to deliver better quality andlower prices. I remember our local Presto super-market back in the 80s was a grim place withstodgy fare until Tesco opened up the road. Andhow many charming little corners of Europe areeasily accessible now thanks to easyJet andRyanair? Indeed, how many Thatcher rejection-ists have a quaint retreat in Provence or Tuscanyand a local Waitrose stocked with olives, sundried tomatoes and decent bread?

Speaking of foreign travel, do we really needthe freedom to buy whatever foreign currency we want in whatever amount? Lets reimposecurrency controls so our rejectionists can onceagain don hanky sunhats while figuring out howto stretch 100 a week. It would certainly help

distinguish Britons from other pink-skinned

northern Europeans down in the Costas, sincebinge drinking will no longer be affordable.

Theres much lamenting the lack of British-owned manufacturers, yet the car industry inBritain today is on the verge of producing recordnumbers and exports of cars. A bona-fide rejec-tionist would toss out those evil foreigners atToyota, Nissan, BMW, Ford and Tata so we couldget behind the wheel (and under the bonnet) of aBritish Leyland clunker once again.

Then theres all that council housing Thatchersold off. A true rejectionist would forcibly buythem back, but at the original selling price, toteach those aspiring lower classes that there issuch a thing as society in which they have theirallotted place.

And since were coming up to the thirtiethanniversary of the Falklands war, what betterway to undo a Thatcher triumph then by simplyhanding the islands over to Argentina? As addi-tional compensation, we could toss in a couple ofaircraft carriers were building but have no plansfor.

Finally, lets not forget the coal miners.Everybody, back down the pits for an early deathfrom accident or disease or sheer exhaustion.The air is getting too clean and I miss the peasoupers of Sherlock Holmes fame, three-daywork weeks and candle-lit shops.

Jan Boucek, a former financial journalist, blogs forThe Adam Smith Institute.

14 The ForumCITYA.M. 6 JANUARY 2012

Everybody back down thepits for an early death

Margaret Thatchers legacyis that no-one tries to scrapwhat the Iron Lady achieved

cityam.com/forum

JAN BOUCEK

Agree? Disagree? Got a sharp comment?The Forum wants you to join the debate.

COMMENT NOW ON

Twitter:@cityamforum;

on the web: cityam.com/forum;

or byemail:[email protected].

Top responses will be reprinted in The Forum.

8/3/2019 Cityam 2012-01-06

15/24

8/3/2019 Cityam 2012-01-06

16/24

8/3/2019 Cityam 2012-01-06

17/24

CITY MILLSPrice: from 245,000A collection of apartments, currently under development, a stones throw fromHoxton. Homes will range from one bedroom city apartments, to three bedroom fami-

ly homes, some with garden access. There will also be penthouse suites with largeroof garden terraces available. Call: 0844 406 9800 or visit www.thecitymills.co.uk

BALTIC PLACE,N1Price: 399,950A two bedroom, twobathroom propertywith two Juliet bal-conies and viewsover the KingslandBasin. Comprises areception room andfully fitted kitchenwith integratedappliences. Masterbedroom comeswith an ensuitebathroom. ContactFoxtons: 0800 3698667 or www.fox-tons.co.uk

KINGSLANDWHARVESPrice: 250,000 -545,000KingslandWharves is a lux-ury canalsidedevelopment builton the banks ofthe historicKingsland Basinjust off RegentsCanal with on sitecafes, shops andcommercialspace.ContactKingslandWharves on0844 406 9299or visit

www.kingsland-wharves.co.uk

COMMUTING:Due to the East London Line extension, newtransport links offer London on yourdoorstep. Haggerston overground stationprovides direct services to many importantdestinations including Canary Wharf and theWest End in less than 30 minutes, LondonCity Airport and Stratford for the nearbyOlympic Stadium and Village. It also provideseasy access to the south and soon the over-ground link will complete a loop of London.

EDUCATION:There is a wide range of local schools,including community, independent andvoluntary aided. Haggerston School is arenowned grade II listed buildingdesigned by the modernist architect, ErnoGoldfinger whilst the non-denominationalBridge Academy has attracted more fami-lies to the local area with its newly builtsixth form (completion expected inSeptember 2012).

NEED TO KNOW | AREA INSIGHT

FOCUS ON: HAGGERSTON BY STEVE DINNEEN

Living | Focus onCITYA.M. 6 JANUARY 2012

LOCAL AREA | PRICES (SOURCE: LAND REGISTRY )

Detached Semi-Detached Terraced Flats

Haggerston 587,229 608,507 469,768 327,693

Q A&BUY

Ed MeadDIRECTOR,DOUGLAS & GORDON

Q.Thinking prices would begoing down last year Isigned a one year rental.

Values seem to be going up,should I buy or stay renting?

A.Its easy to stay in a rental ifvalues are falling but if, likein London, theyre still going

up, its difficult to resist low mort-gage rates and buy. Much dependson your age, where you think youllbe working, and whether you haveenough for a deposit. With anyonemuch under the average first timebuyers age of 37, the chances ofsaving the minimum 25 per centdeposit are slim.

The average price in London is320,000, so 80,000 is a lot tocome up with. The single biggestargument for staying in rented prop-erty is job uncertainty. Mobility hassuffered heavily with increases inStamp Duty, with moving now cost-ing at least six per cent of your capi-tal at average London prices. This is alot and if your job ambitions take youaway, the flexibility of renting allowsyou that latitude.

Since the 80s people have lookedat property as an investment but itsworth remembering that theres littlewrong with thinking about living in arental and making your money workby investing in your own business orbeing more entrepreneurial. Perhapsthe fact that where you live is yourhome has been forgotten.

There will be many forced to rentbecause they cant (or fear not beingable to) get a mortgage, so whateveryou do, you need to be talking to amortgage broker before you evenconsider taking the plunge. Getting amortgage is more difficult than everso get all the help you can.

The last part of your question iswhether prices will carry on going upand as I write this theres little to sug-gest they wont. However, last yearpundits subscribed to the view thatprices would fall by around five percent and theyve gone up over 10 percent: this years forecast is flat or a lit-tle down. But my hunch is that valueswill continue to go gently upwards assupply shows no sign of easing anddemand seems constant.

Also, rental volumes seem to bedipping, as many current tenantsare thinking that higher rents havemade them consider buying more

attractive.

17

From initial reservations aboutthe strength of the propertymarket at the start of the year tothe unexpected uplift in house

prices as the year progressed, 2011 was not an easy year to predict.Against a continuing environment ofuncertainty, we ask the experts whatthey think we have in store this yearand beyond.

Londons property market will con-tinue to our perform the rest of thecountry, with prices falling aroundmost of the country while the capitalsees only a modest fall, according toKay & Co managing director MartinBikhit. Central London will buck thetrend with a price rise. Bikhit says therental market will continue to seeprice increases of three to four percent, which could continue foraround five years.

Camilla Dell, managing partner atBlack Brick Property Solutions agrees,saying prime central London (PCL)locations including Mayfair,Knightsbridge and Belgravia will seeprice rises, albeit at a slower rate thanlast year. She adds that a bad year for bankers bonuses is likely to softenprices at domestic buyer hotspots like

Fulham, Putney and Battersea.Howard Elston, associate director

of Aylesford International saysInternational buyers will continueto dominate the high-end market aspolitical turmoil in other parts ofthe world creates a steady supply ofbuyers. He says a lack of supply forhigh end properties will continueto drive fierce demand, with mostselling as soon as they come on themarket.

There is almost no limit on priceper square foot, in PCL, according to

Gary Hersham, partner atBeauchamp Estates, with Londonremaining one of the most desirablelocations in the world and economic woes having little influence at thisend of the market.

The inclement economic condi-tions mean there are fewer corporatetenants, says Catherine Cockcroft,head of rentals at AylesfordInternational. However, many poten-tial first time buyers are continuingto rent rather than purchase as theyfear for their job security, meaning

there is unlikely to be an easing onrental prices.

If the economic situation improvesand construction bounces back, theemphasis will be on bigger flats, saysGiles Underhill, a director at Vision.He said: More thought put into thedesign process as developers increas-ingly think of the requirements ofthe owner-occupier rather than pro-ducing small flats for the rentalinvestor. We will also see more dar-ing and interesting modern architec-ture as buyers tastes change.

What is in store for 2012?The propertymarket for 2012 istough to predict.Steve Dinneen asksthe industry experts

8/3/2019 Cityam 2012-01-06

18/24

FILM

THE IRON LADYCert: 12A

hhhII by Steve Dinneen

One of the defining figures of our gen-eration; a woman who reached thetop despite the best efforts of thepatriarchy; a divisive personality

who demands the grudging respect of herdetractors. Meryl Streep could teach us all athing or two.

And in The Iron Lady a flawed, at timesone dimensional film she has deliveredthe performance of her career.

The opening sequence shows a frailMargaret Thatcher wandering into a cornershop, where the music is too loud and alocal youth, blissfully unaware of who sheis, shoulders past her. The price of milk

which the grocers daughter could oncequote on demand astonishes her. The filmmay be titled the The Iron Lady, but it is theOld Lady who takes centre stage a womanlost in the world she helped to create: lone-ly, confused, plagued by the onset ofdementia and unable to recover from thedeath of her husband.

Dennis Thatchers ghost, camped up by Jim Broadbent, is a recurring character,keeping the former Prime Minister compa-ny as she whiles away her days, effectivelyunder house arrest. His presence is a neat,if slightly uncomfortable, trick, providing

both light relief and a stark reminder of thetribulations of old age.

This is where The Iron Lady is at its best showing a side of Thatcher hitherto unex-plored on film, struggling to come to terms

with life after power. The rest of the film,

told through pro-longed flashbacks

brought on bycurrent events(a newsreport of at e r r o r i s tattack brings

back harrow-ing memoriesof the IRAsBrighton bomb-ing), plays like ahighlights reel of

Thatchers life thesort of thing youmight expect tosee in an obituary

reel. Her famousFinchley victory,

The Iron Ladys pastis polished butStreeps perform-ance carries thefilm

Lifestyle | Reviews18 CITYA.M. 6 JANUARY 2012

Meryl Streep shines

in this flawed biopic

the miners strikes, the Falklands conflict,Brighton: these milestones are all skillfullyexecuted, with painstaking attention todetail but there is nothing to explain thepsychological impetus or political back-drop.

The young Thatcher played byAlexandra Roach, who never quite hits thehighs of Andrea Riseboroughs portrayal in

The Long Walk to Finchley is plucky, ris-ing to the top despite being shunned by the

boys-club at Westminster; a blue hat in asea a black suits. During one Commonsclash she is sneeringly told to calm down,a knowing nod to modern politics that,sadly, The Iron Lady strictly rations. But herrise to power feels toothless she succeedsentirely through being earnest: the shrewd,formidable political operator is entirelyignored.

The grocers daughter cliche is reeledout so often The Iron Lady feels onedimensional. Even her heavy-handed treat-ment of her cabinet is pitted as the strug-gle of a single-minded woman swimmingagainst the current, engaged in a ceaseless

war with the spineless, treacherous mensurrounding her.

This is partly down to Streep, who, clear-ly fond of the woman she is playing,imbues even Thatchers dark moments

with a sense of dignity. Peel back the fluffyretelling (which is perhaps not entirely sur-prising, considering director PhyllidaLloyds last movie was Mamma Mia!) and

youre left with a flawless performance byStreep. She captures Thatcher eerily well the 1000-yard stare, the walk and most ofall the voice. She mimics her unmistakable

tenor like a mynah bird with a blow-dry.The scenes in Thatchers home, whereher loneliness and mental decline

are laid bare, prompted audiblesniffles from a room full of hard-nosed political hacks.

The supporting cast including Richard E Grant asMichael Heseltine and,notably, Peep Shows OliviaColman as daughter Carol

are solid but pale alongsidetheir leading lady.

For intellectual vigouror political cut

and thrust, lookelsewhere. Thisis a virtuosotour ofNumber 10D o w n i n gStreep. Thatthird Oscar

could well beclose.

Ice hockey film is a bloody messFILM

GOONCert 15

hIIII by Lisa Melvin

Having grown up in rural Scotland,I'm no stranger to random acts ofphysical violence. Theres not thatmuch to do up there beyond sheep

farming and punching each other in theface until teeth are dislodged and bloodis spurted. According to Goon, ice hock-ey and rural Scotland have more incommon than youd think. I didntsee any sheep but I did see enough of

what is referred to as facial menstru-ation to last me until my nexttrip to the Hinterland.

Unappreciated byhis intellectual par-ents, bouncer DougGlatt, played bySeann William

Scott of AmericanPie and Dude

Wheres MyCar?, is supposed

to be a loveable dimwit. Hired by aCanadian ice hockey team as anenforcer, or goon, his job is to protect

their star player from the other team.Apparently, protect in the contextof ice hockey means to beat members ofthe other team up and thus we seecountless shots of noses flowing with

blood, busted lips and teeth flying every-where. Glatt is put forward as a sympa-thetic character and yet and its hard toroot for someone whose job applicationskills consist of battering his team mates

because they laughed at him. The inevitable love storyfeels tacked on, with a weirdly flat performanceby Alison Pill who, despiteher self-declared love of

beer and violence, weeps inanguish every time her man

is battered on the ice. Withno previous knowledge of

the role fighting playsin ice hockey (every-thing I know about

the sport, I learntfrom Mighty Ducks2), I was cringingalong with her.

Thatchers relation-

ship with Reagan issadly glossed over

8/3/2019 Cityam 2012-01-06

19/24

TER

RESTRIAL

NEWGIRL

CHANNEL 4,8.30PMNew series. A young woman moves inwith three single men but her newflatmates have trouble adjusting toher quirks. Zooey Deschanel stars.

SICILY UNPACKED

BBC2,9PMIn this new series, Andrew Graham-Dixon and Giorgio Locatelli introduceeach other to the things they loveabout the Mediterranean island.

CORONATION STREET

ITV1, 7.30PMBeth catches Frank kissing Sally, andwastes no time telling Kevin. Rita hasa run-in with the police as Kirsty andTinas feud escalates.

BBC1

SKY SPORTS 17pm Sky Sports News at

Seven 7.30pm Live Football

League 10pm Take It Like a

Fan10.30pm Football League

Weekend 11.25pm-6amLive

Test Cricket

SKY SPORTS 27pm Live Elite League Ice

Hockey 10pm WWE: Late

Night Smackdown12am

WWE: Late Night BottomLine 1am Take It Like a Fan

1.30am Football League

Weekend 2.30am Trans World

Sport 3.30amTight Lines

4.30am NFL: Total Access

SKY SPORTS 37pm Tight Lines 8pm PDC

Awards Highlights 8.30pm

European Tour Golf10.30pm

Live PGA Tour Golf3am

European Tour Golf5am

Powerboating 5.30am-6am

Road to London

BRITISH EUROSPORT6.30pm Live Snooker 9pm Ski

Jumping 10pm Dakar Rally

10.45pm Motorcycling

11.45pm-12.35amDakar Rally

ESPN7pm Live Premiership Rugby

Union 10pm FA Cup Preview

Show 10.30pmGoal! Special11pm ESPN Kicks: Premier

League 11.15pm ESPN Kicks:

Scottish Premier League

11.30pm Press Pass 2012

12am Euroleague Basketball

Show 12.30am FIBA

Basketball 1am Live NBA

Basketball 3.30amNBA

Action4am Euroleague

Basketball Show 4.30am

FIBA Basketball 5am-6am

UFC Unleashed

SKY LIVING9pm Criminal Minds 10pm

CSI:Crime Scene Investigation

11pm Bones 12am Maury 1am

CSI:Crime Scene Investigation

2.40amMaury 3.30am Bones

4.20am Nothing to Declare

5.10am-6amJerry Springer

BBC THREE7pm Most Annoying People of

2011 8pm The Real Hustle:Best Ever Cons 9pm Russell

Howards Good News 10pm

EastEnders 10.30pm Little

Britain 11pm Family Guy

11.45pmAmerican Dad!

12.30am Little Britain 1am

Lee Nelsons Well Good Show

1.30am Russell Howards Good

News 2.30am The Real Hustle:

Best Ever Cons 3.30am Being

Human4.30am-5.25amMost

Annoying People of 2011

E49pm Derren Brown:

Something Wicked This Way

Comes 10.40pmWorlds

Greatest Body Shockers Part

2 11.45pmThe Big Bang

Theory 12.40amHow I Met

Your Mother 1.10amScrubs

2am Derren Brown:

Something Wicked This Way

Comes 3.20am Greek

HISTORY7pm Storage Wars 7.30pm

Pawn Stars 8pm Storage

Wars 9pm American Pickers

10pm Cash Cowboys 11pm

How London Was Built 12am

American Pickers 1am Cash

Cowboys 2am How London

Was Built 3am Americas

Toughest Jobs 4am America:

The Story of the US 5am-6am

American Pickers

DISCOVERY7pm Mythbusters8pm Bear

Grylls: Born Survivor 9pm One

Man Army 10pm American

Chopper: Senior Versus Junior

11pm Deadliest Catch 12am

Bear Grylls: Born Survivor 1am

One Man Army 2am American

Chopper: Senior Versus Junior

3am Wheeler Dealers 3.50am

Mythbusters4.40am

Industrial Revelations

DISCOVERY HOME &

HEALTH9pm 19 Kids and Counting

10pm Age 8 and Wanting a

Sex Change 11pm Emergency

12am 19 Kids and Counting

1am Age 8 and Wanting a Sex

Change2am Emergency 3am

19 Kids and Counting 4am A

Baby Story 5am-6amBringing

Home Baby

BBC2 ITV1 CHANNEL4 CHANNEL5

SATELLITE&

CABLE

TVPICK7.30pmA Question of Sport8pm EastEnders:

8.30pm The One Lenny Henry:

9pm Public Enemies:

10pm BBC News10.25pmRegional News10.35pmThe Graham Norton

Show:

11.20pmThe National LotteryFriday Night Draws:

11.30pmFILMThe Infidel2010.1.10am Weatherview 1.15am SignZone: Natural World: The Woman

Who Swims With Killer Whales2.15am James Mays Man Lab3.15am MasterChef: TheProfessionals4.15am-6am

BBC News

6pm Eggheads:

6.30pm Great British Railway

Journeys:

7pm Great Barrier Reef:

8pm Mastermind:

8.30pm Mastermind:

9pm CHOICE Sicily Unpacked:

10pm QI:

10.30pmNewsnight:11pm Weather

11.05pmFILMFifty Dead Men

Walking: Premiere. Fact-based

thriller. 2008.

12.55amFILMBeaufort:

Premiere. War drama. 2007.2.55amBBC News 3.35am-6am

Close

6.30pm ITV News

7pm Emmerdale:

7.30pm CHOICE Coronation

Street:

8pm Safari Vet School:8.30pm Coronation Street:9pm Law & Order: UK:

10pm ITV News at Ten

10.30pm London News10.35pm Itll Be Alright on the

Night 2:

11.35pmCelebrity Who Wantsto Be a Millionaire?: New Year

Special:

12.30am The Zone; ITV News2.30am FILMDeliverance 1972.4.20am-5.30am ITV Nightscreen

6pm The Simpsons:

6.30pm Hollyoaks:

7pm Channel 4 News

7.25pm 4thought.tv:

7.30pmCome Dine with Me:

Celebrity Special:8.30pmCHOICE New Girl:

9pm The Bank Job:

10pm Rude Tube 2012:12.05amFILM Big Trouble in

Little China: Comedy.1986.1.55amRandom Acts 2am LuckyEscape 2.05am My Name Is

Earl 2.25amMy Name Is Earl2.45am Hung 3.35am StElsewhere 4.20am Hughs FishFight5.15am-6am Brothers &

Sisters

6pm Eddie Stobart: Trucks and

Trailers:

6.55pm 5 News

7pm Charley Boormans

Extreme Frontiers: 5 News

8pm Worlds Toughest Trucker:

5 News at 9

9pm Celebrity Big Brother:

10pm Celebrity WeddingPlanner:

11pm Celebrity Big Brothers

Bit on the Side:

12am SuperCasino4.05am Motorsport Mundial

4.30amMichaelas Wild Challenge

4.55amCounty Secrets

5.10am-5.35am Wildlife SOS

13 22

45

16 15

8 13 7

23 11

10 11

12 21

9 3 14

16 10

45

23 7

28

30

18

17

17

6

11

4

25

14

12

16

19

11

7

8

15

5

35

33

10

13

Fill the grid so that each block

adds up to the total in the box

above or to the left of it.

You can only use the 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 ISSUESSOLUTIONS

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 Turned-back hems at the

ends o sleeves (5)4 Rubbish (5)

7 Creature (6)

9 Largest and most southerlyisland in the Marianas (4)

10 Cofee shop (4)

11 Abrupt (6)

13 Group o musicians (4)

15 Lean-fleshed fish,oten armed (4)

17 Calculating machine (6)

20 Former unit o moneyin Italy (4)

21 Amusement or pastime (4)

22 Solidified carbon dioxide, usedmainly as a rerigerant (3,3)

23 Blue ___, flag indicating aship is ready to sail (5)

24 Advanced slowly (5)

DOWN

1 Timeless (7)

2 Cooked in oil (5)

3 Empty area (5)

5 Branch omathematics (7)

6 Educate ina skill (5)

8 Cord wornaround the neckto hold a knieor whistle (7)

12 Exhaust, useup (7)

14 Move downwardand lower (7)

16 Plant also knownas the centuryplant (5)

18 Canal boat (5)

19 Adhere, stick (5)

R

G

V

E

SO

M

I

N

H A L A N T O N

A T T A I N D E R E

Y T N E G O W

D O U B T N A T A L

N A N A T Y

P E R C A P I T A

B B V A M P

I D L E R T E M P O

S E C U O P I

O S U B A L T E R N

N O S E Y L R T

3 2 1 4 2 8 3 1

9 8 5 8 7 9 6 3

8 7 3 5 9 6 5 2

4 1 5 6 4

1 8 2 6 4 2 1 3

2 9 5 8 1 7 9

4 6 8 7 9 5 2 1

1 2 4 6 9

1 2 6 9 1 7 3 2

5 7 3 9 8 6 1 3

3 4 1 2 7 8 9 5

WORDWHEELThe nine-letter word was

PERSPIRED

Lifestyle | TV& Games 19CITYA.M. 6 JANUARY 2012

8/3/2019 Cityam 2012-01-06

20/24

Punter | Football20

T

HE city of Manchester dominatedthe early rounds in this yearsPremier League fight, but its bee

cityam 2012-01-06

Documents