7/31/2019 Cityam 2012-07-03

1/24

To nd out how, join us for our next MBAExperience Day. Register at www.cassmba.com

Upgrade to Business Cass

www.cassmba.com

Date: 14 July 2012Time: 10.15 15.30

Fears for Ueconomy aorders dropUS MANUFACTURING output fellfor the first time in three years,industry data showed yesterday,raising fears that Europesrecession is hitting Americanseconomic recovery.

The Institute for Supply Managements purchasingmanagers index (PMI) collapsedto 49.7 in June from 53.5 in May,its lowest score since 2009.

The drop in the new ordersindex from 60.1 to 47.8 in just amonth suggests severe futuredeterioration. A score below 50indicates a fall in activity.

Paul Dales at Capital Economicssaid: The plunge is clearly the

biggest sign yet that the US iscatching the slowdown wellunderway in Europe and China.

But a reading of below 47.0 isrequired for another recession the index is still consistent withan economy growing at anannualised rate of a little belowone per cent.

Ian Shepherdson at HFE wentfurther: The recession/growth

boundary for the ISM is about44. He added: The downshift inthe new orders index is only one-tenth less than the plunge after9/11.

The dollar depreciated againstthe yen to 79.42 on the

announcement, butrose on the euro to

0.79, as these gloomy manufacturingfigures wereoutweighed by

worries aboutthe ongoing

Eurozone debtcrisis.

Andrew Tyrie will lead the joint committee probe

DAVID Cameron yesterday announcedtwo wide-ranging inquiries into the

banking system, pledging to probe theculture and standards of the industry and bring those responsible for fixingthe Libor interest rate to justice.

The British people want to see bankers who acted improperly pun-ished, Cameron told the House of Commons. The news came soon after the UKs

fraud squad confirmed that it is con-sidering whether it can pursue crimi-nal prosecutions against thoseinvolved in the rate fixing scandal.

Under the governments plans Andrew Tyrie MP will lead a joint com-mittee of both Houses of Parliament toinvestigate the culture of British bank-ing and ask whether existing criminaland civil sanctions work as deterrents.

It is expected to complete its report by Christmas and its recommenda-tions will be included in the forthcom-ing Banking Reform Bill.

This committee will be able to takeevidence under oath, it will have fullaccess to papers and officials and min-isters including ministers and spe-cial advisers from the last government and it will be given all the resourcesit needs to do its job properly,Cameron said.

Separately Martin Wheatley, current

head of financial conduct at theFinancial Services Authority (FSA), willlead an independent review of theLibor interest rate, investigating the

need for greater transparency in sub-mitting and compiling the daily rate.

He is expected to produce his find-ings by September, in time for theresults to influence the forthcomingFinancial Services Bill. The FSA will also work with the

Serious Fraud Office (SFO) to review evidence of rate fixing, with a deci-sion on whether criminal charges can

be brought under existing laws due by the end of the month.

However, Cameron yesterday resis-ted opposition calls for a full-blownpublic investigation similar to theLeveson inquiry into media ethics.

This is the right approach becauseit will be able to start immediately, it

will be accountable to this House andit will get to the truth quickly, so wecan make sure this can never happenagain, he said. The decision to allow the inquiry

access to former officials raises theprospect of Labours Ed Balls and EdMiliband, both Treasury ministers inthe last government, being called toappear in front of the committee.

Labour is pressing for a fully inde-pendent rather than parliamentary inquiry into the broader banking sec-tor, with plans to raise the partys

objections in the House this week.Meanwhile chancellor George

Osborne suggested that prosecutionsof bankers were a possibility, urgingregulators to use every legal optionavailable to punish those whoabused the Libor rate. The Treasury also confirmed that

the proceeds of the record-breaking59.5m FSA fine on Barclays will bepaid to the Exchequer for the benefitof taxpayers. Until now money given

to the FSA was used to subsidise leviespaid by other financial firms.

BY BEN SOUTHWOOD

FTSE 100L 5,640.64 +69.49 DOWn 12,871.39 -8.70 NASDAQL 2,951.23 +16.18 /$ 1.57 unc / L 1.25 +0.01 /$ n 1.26 -0.01

MORE: Page 4-5, Page 17LLALLIST ER HEATH: Page 2LL

WE REVIEW NORTH RDANISH DELIGHT

See Page 20

www.cityam.com FREEISSUE 1,665 TUESDAY 3 JULY 2012THE NEXT SCANDINAVIAN HIT

BY JAMES WATERSON

BANKSGOUNDER

THE MICROSCOPE

Certified Distribution30/04/12 till 27/05/12 is 132,076

LONDON2012

days to go24

n Joint committee of MPs andpeers to investigate bank sector

n Regulator Martin Wheatley tolead government review of Libor

n Fraud squad is looking intolaunching criminal prosecutions

The FSAs Martin Wheatley is looking into Libor David Greens SFO may bring prosecutions

BUSINESS WITH PERSONALITY

Growth underObama hasbeen patchy

MORE: Page 7LL

7/31/2019 Cityam 2012-07-03

2/24

allister.heath@cityam.comFollow me on Twitter: @allisterheath

IN BRIEFInvestors urged to clean up firmn The government has done all it can togive shareholders power overexecutives and boost transparency inbig firms, and it is now down toinvestors to improve the way businessesare run and make Britains banks safeagain, business secretary Vince Cabletold the Association of British Insurerslast night. If the prevailing culture is tochange, there can be no substitute forleadership from companies themselvesand their owners whether on diversity,directors pay, or the pursuit of long-runreturns rather than short term rewards,said Cable. That depends on investoraction, not apathy.

Webb calls for pension certainn Pensions minister Steve Webb willtoday call for better certainty in pensionplanning. Claiming people want clarityabout what their pension income mightbe, Webb said earlier: With the dawnof automatic enrolment the market isgrowing so now is the time forpensions industry to look at the marketgap in relation to affordable guaranteesand provide the products consumers areseeking. The industry needs to movefast on this or be left behind.

Administration for Julian Gravn High street health food shop JulianGraves yesterday collapsed intoadministration after four years of losses.Owned by the same company asHolland and Barrett, Julian Gravesstores will continue to operate while itsfinancial situation is assessed. The 189-strong chain said no redundancies arecurrently proposed and its 755 staff willbe paid as normal.

Fitch: Banking union mayfail without big changesEUROZONE plans for a union-wide

banking union need major improve-ments if they are to work effectively,or even succeed in being implement-ed at all, credit ratings agency Fitch

warned yesterday.Political leaders want to create a

single banking supervisor, probably under the European Central Bank (ECB), with the aim of breaking thedamaging link between banks andtheir national governments.

European Commission president Jose Manuel Barroso believes theplan will boost financial stability and help stop any future repeat of the current crisis.

Fitch analysts praised the idea, say-ing the ECBs guidance could helpreinforce financial stability in thesector, and it could ensure a con-sistent application of the rule book and a co-ordinated regulatory response in times of financial crisis.

But the agency said the plan must be taken much further to have any chance of succeeding.

Many important details of theplanned reforms are still missing,said managing director BridgetGandy.

There is still some risk it wonthappen. The research note pointed to the

lack of detail on how the union

Heatwave threatens US harvestAn intense heatwave is threatening havocwith this years US grain harvest, burningup hopes of blockbuster yields andsending prices soaring. Even a modestreduction in crops could send ripplesthrough global food commodities markets,as the US is the worlds top exporter ofcorn, soyabeans and wheat, and stocks ofthe first two are relatively low.

Total finds gas in AzerbaijanTotal, the French oil group, confirmed ithad discovered huge reserves of natural

gas in the Caspian Sea, underscoringAzerbaijans status as a potentially keysource of future gas supplies to Europe.Total said well results at its Absherondiscovery offshore Azerbaijan indicatedgas resources of 150bn to 300bn cubicmetres, or 5tn-10tn cubic feet. The upperend of the estimate is nearly four timesthe UKs annual gas consumption.

Dubai to refit QE2 as hotelDubai plans to refit the Queen Elizabeth 2as a 300-room hotel, ending five years ofuncertainty over the fate of the historiccruise liner. Since it was retired in late2008 it has become a Dubai landmark.

Harry Potter firm buys Swiss rivalBloomsbury Publishing said yesterday thatit would pay 1.7m over three years to buyApplied Visual Arts Publishing, a Swiss-based publisher of textbooks for designand film students.

Airbus takes on rivalEuropes biggest aircraft manufacturer isabout to park in Boeings back yard afterannouncing that it will build its firstassembly factory in the United States.Airbus will spend $600 million on a newfacility in Mobile, Alabama, that will createmore than 1,000 jobs.

Ulster Bank still hit by crisisUp to 100,000 customers of Ulster Bankare still unable to access their money, asthe IT crisis that crippled the RBS networkstretched into its fourteenth day.

Microsoft to take $6.2bn writedownMicrosoft is to take a $6.2bn (3.95bn)writedown to reflect the slump in value ofits online services division. The chargereflects a writedown related to 2007acquisition of aQuantive, a digitaladvertising firm aimed at helpingMicrosoft compete against Google andothers.

Anglo American warns on reveAnglo American Platinum said yesterdaythat earnings for the first half of the yearcould be down as much as 20 per centfrom the year before, hit by lower pricesand a drop in sales.

Micron to acquire Elpida MemoMicron Technology agreed to acquiretroubled Japanese rival Elpida Memory forabout $2.5bn, as the US memory makerbulks up to compete against rivals inSouth Korea and Taiwan. The deal wouldmake Micron number two in the market formemory chips, second only to Samsung.

PRIME Minister David Cameroncame under attack from all sides

yesterday over his apparentdithering about Britains future inthe European Union.

On Friday he appeared to haveruled out a referendum on thesubject but said during the

weekend that the words Europeand referendum could gotogether.

Yesterday he told parliament:Just as I believe that it would be

wrong to have an immediate in-out referendum, so it would bealso be wrong to rule out any typeof referendum for the future.

Far from ruling out areferendum for the future, as afresh deal in Europe becomesclear, we should consider how bestto get the fresh consent of theBritish people.

Cameron faced heckling fromLabour leader Ed Miliband, whosaid: Three days, three positions,first it was no, then it was yes,then it was maybe.

But Cameron also faces a groundswell of dissent from fellowTories with more than 100signing a letter calling forlegislation for a referendum afterthe planned 2015 polls.

Meanwhile Liberal Democrat Vince Cable derided the wholedebate as horribly irrelevant.

Cameron called

to account overhis stance on EU

EC president Jose Manuel Barroso believes a banking union could reduce some uncertainty

2 NEWS

BY JENNY FORSYTH

BY TIM WALLACE

To contact the newsdesk email news@citya

WE should be grateful forsmall mercies: yesterdaysannouncements from thegovernment concerning the

banking crisis were half good. It isexcellent news that the authoritieshave become more serious in theirdetermination to prosecute wrong-

doing criminally. Fines are notenough; we need to see tough jailsentences for those who break therules and a change in the law if necessary to achieve that. The probeinto the despicable and disgracefulLibor affair also makes sense it will

be speedy and to the point.But Im not sold on the parliamen-

tary inquiry. Rather than relying onendless, energy-sapping and hugely time-consuming investigations partly designed to make politicians feel goodabout themselves, the authoritiesshould focus on their core purpose:

EDITORSLETTER

ALLISTER HEATH

We should prosecute criminals, not set up endleTUESDAY 3 JULY 2012

fighting fraud and rule-breaking wherever it occurs. Andrew Tyrie, theexcellent chairman of the Treasury Select Committee, will undoubtedly do a good job trying to investigate

what really happened and who in theCity, the Bank of England, the

Treasury and government agenciesknew what was going on why doeshe need another committee? I hopehell prove me wrong.

It is also laughable nonsense toassume that wrong-doing only hap-

pens in f inance. GlaxoSmithKline yes-terday settled a US fraud case inreturn for a $3bn fine far more than

what Barclays had to pay. Fraud anddishonesty happen in all realms of human action, public and private.

Their occurrence shouldnt be exag-gerated the vast majority of people

are honest the vast majority of thetime but neither should anybody pretend that human beings areangels. Wrong-doers should be prose-cuted, regardless of industry. That isthe governments job.

MANUFACTURING IN CRISISIt is easy to become obsessed with the

banking scandal but the state of the world economy is an equally pressingissue. Yesterdays US ISM manufactur-ing survey revealed the first contrac-tion for three years in that key part of the worlds biggest economy. America

ated begin to hinder, rather thanhelp, the recovery. The authorities inBeijing may well be at that stage.

Many countries are still sufferingfrom the need to liquidate bad invest-ments made during the bubble days;others are either deleveraging oraccumulating debt at a slower rate to

avoid bankruptcy; and the Eurozoneitself is in terminal decline, with itslatest summit another wasted oppor-tunity. The tragedy is that the authori-ties seem to have only one answer: toprint even more money. But that can-not be the solution. The UK in particu-lar should be focusing onmuch-needed supply-side reforms.Holding inquiries into banks is all welland good but it wont do anything topull us out of recession.

is not yet in a double-dip but this is adeeply worrying development, withpotentially far-reaching repercus-sions. Barack Obama will be hopingthat the trend reverses itself: the USelectorate doesnt look kindly uponpresidents seeking re-election whenthe economy is shrinking.

The UK manufacturing sector is alsocontinuing to contract, albeit at aslower rate. The Eurozone is, of course, in crisis; even Germanys man-ufacturing sector is shrinking. Chinatoo is in negative territory (on theHSBC measure, rather the less reli-able official statistic, which stillshows a tiny amount of expansion).

The problems facing the Chineseeconomy are perhaps the most worry-ing of all: like other economies, it toohas pump-primed growth in recent

years. At some point, however, stimulicease working and the distortions cre-

could work, as the plan does not men-tion any deposit protection scheme orresolution mechanisms.

But the proposals also fail to explainhow a single regulator can govern the

very varied banking systems acrossthe EU.

Co-operative banks in France, theNetherlands and Germany oftenmutually support each other investors in one can be fully liable forthe actions of another, said Gandy.

Regulators will have to work outhow to take these structures intoaccount.

Similarly, they will have to work outrisks in each bank, and in differentsystems when they work on very dif-ferent models for example, there isnot really a retail mortgage market inGermany, which means banks face

very different risks to those in othercountries.

Fitch analysts also backed plans touse the bailout funds to recapitalisetroubled banks directly, rather thanadding to sovereigns debts, saying theplan could greatly improve the func-tioning of Economic and Monetary Union.

The new jobs website for London profeCITYAMCAREERS.com

WHAT THE OTHER PAPERS SAY THIS MORNING

7/31/2019 Cityam 2012-07-03

3/24

7/31/2019 Cityam 2012-07-03

4/24

G E T T Y

BARCLAYS yesterday promised to holdan independent audit of its businesspractices following its record-break-ing 290m fine for abuse of the Liborinterest rate.

Pledging that all findings will bemade publicly available, Barclays saidit will undertake a root and branchreview of all of the past practices thathave been revealed as flawed since thecredit crisis started. The review will be led by a third

party and will report to senior inde-pendent director Sir Michael Rake tipped to take over as chairman on atemporary basis and will result in anew mandatory code of conduct that

will be applied across the whole of the banking group.

The announcement was made

BY JAMES WATERSONalongside official confirmation thatMarcus Agius has resigned as chair-man after six years at the helm. Yesterday Agius said he welcomed

the inquiry: This exercise will be partof a broader programme of activity intended to restore Barclays reputa-tion and we will establish a zero toler-ance policy for any actions that harmthe reputation of the bank.

Paul Tucker could be cbefore MPs over Libor sTOP Bank of Englandpolicymaker Paul Tucker couldface a grilling from MPs over hisrelationship with embattledBarclays chief executive BobDiamond, if members of theinfluential Treasury SelectCommittee (TSC) get their way.

It is highly likely we will wantto cross-examine top officialsfrom the Bank of England, as

well as the Financial Services Authority, TSC member DavidRuffley told City A.M.

Tucker met with Diamond andother senior Barclays staff at thetime when the bank wasmanipulating Libor and theBank of England has been forcedto deny he told them to submitthe false interest rate readings.

It is nonsense to suggest thatthe Bank of England was awareof any impropriety in the settingof Libor, said a spokesman.

TSC member John Mann believes Barclays implicated theBank of England in the scandal

purely in order to create adistraction to take somepressure off Bob Diamond aheadof tomorrows TSC hearing.

But Mann is seeking evidence he has asked the Bank fortranscripts of the conversationsand copies of emails. If it turnsout they did collude with this,the entire senior level of the

Bank of England would need toresign and some should faceprosecution, he told City A.M.

However, the TSC must actfast it has two weeks before par-liaments summer holiday putsits investigations on hold.

Ruffley and Mann also believethere is a clear case for Diamondto give back his bonuses from the

years of manipulation.I would be very surprised if

shareholders dont want to

revisit bonuses when the bankhas admitted wrongdoing and been fined, said Ruffley.

BY TIM WALLACE

Barclays PLC

26Jun 27Jun 28 Jun 29Jun 2 Jul

200

190

180

170

160

p

168.402 Jul

BARCLAYS chief executive BobDiamond yesterday tried to put to

bed any rumours that he might beleaving the bank after it wasshamed with a 290m fine forfixing the Libor interest rate.

In a memo issued to staff, theBarclays chief executive said: Iunderstand why the reaction has

been severe. No one is more sorry,disappointed and angry about

Bob Diamond says sorry to stafffor reputational damage to bank

BY LAUREN DAVIDSON these events than I am.I am disappointed because

many of these behaviourshappened on my watch. It is my responsibility to make sure that itcannot happen again, he said.

In a sign that he is not preparedto leave, he added: We can and

will restore Barclays reputation.Rejecting the notion that the

Libor scandal is indicative of theculture at Barclays generally,Diamond said: I love Barclays.

TUESDAY 3 JULY 20124 CITY SCANDAL cityam.com

Diamond implied he will not be leaving Barclays and vowed to restore its reputation

BARCLAYS record fine for rigging

Libor interest rates should be awatershed moment for the widerfinancial industry to clean up its actand restore public trust, the head of enforcement at the City watchdogsaid yesterday.

The Libor penalty and last weeksnews that the UKs top four banksmis-sold interest rate swaps to small

businesses compounds thestereotype of a sector that cannot betrusted and left to its own devices,said the FSAs Tracey McDermott.

Instead, it sells products to the wrong people at the wrong time inthe wrong way. To change things inthe future, to restore that trust andconfidence... requires tough actionfrom the regulator but its not our

job alone, McDermott told an FSA conference.

She also said Barclays was not anisolated case in the Libor debacle.

McDermott said wave after waveof mis-selling scandals meant therole of regulators must be rethoughtand warned firms which fail toimprove despite repeated requests.

Regulator safine will notisolated case

BY CITY A.M.REPORTER

BEING dragged into the Liborfixing scandal has done nofavours for Paul Tuckersambitions of becoming thenext governor of the Bank of England.

Current Bank chief Mervyn King is due to stepdown in the summer of 2013, and Tucker has long

been expected to have hishat in the ring toreplace him.

With acareerhistory of

banking

supervision, Tucker is seen asthe Old Ladys eyes and ears in

the City. With hisproximity to core

financial sectorissues, crises such asthe Libor fixing

scandal pose a threatto Tuckers reputation

especially if hesdragged through themud.

The Banks remitis set to expand

beyondanything

that could

have been imagined prior to thecredit crunch and globaleconomic crisis. When the new regulatory Financial Policy Committee (FPC) began its foetaldevelopment in February last

year, Tucker was among the firstnames on the team sheet. Asdeputy governor responsible forfinancial stability, he also hasrespected roles on the BaselCommittee and the G20sFinancial Stability Board.

Such credentials rank himhighly yet this focus on

banking could prove to be a

double edged sword. Julian Harris

PROFILE:DEPUTY BANK GOVERNOR PAUL TUC

John Mann will grill Diamond tomorrow David Ruffley expects to question Tucker

Barclays to holdinternal reviewof its practices

7/31/2019 Cityam 2012-07-03

5/24

EasyJet founder Sir Stelios Haji-Ioannou called Sir Mike Rake the dog that didnt bark

TUESDAY 3 JULY 20125CITY SCANDALcityam.com

WHENEVER a bankingscandal breaks in the City, be it rogue tradeallegations at UBS, a

massive trading loss at JP Morgan orthe current Libor interest ratesscandal, the first concern is for thereputation of the industry as a

whole. But, investment bankers being possibly the most competitive bunch on the universe, theconversation very rapidly turns to

what sort of an advantage one groupcan take from anothers woes.

The current turmoil surroundingBarclays and its chief executive BobDiamond is no different. Withinhours of the news about the Liborscandal being made public, bankers

were casting an eye at the clients of

Barclays investment bank. The rise of Barclays investment

banking arm in the advisory sectorof mergers and acquisitions andequity capital markets has been oneof the most significant investment

banking developments of the lastfew years.

Barclays was the only UK-based bank to get an advisory role on theFacebook float; the bank is

constantly pitching to be broker toFTSE 100 companies and has wonquite a few of them, such as IAG, theparent of British Airways; and it evenmuscled in as an adviser to the yearslargest merger of the year, the on-off deal between Glencore and Xstrata.In terms of recruiting, it has hired

some of the biggest names in theLondon market, such as former Bank of America Merrill Lynch stars Mark

Astaire, soon to arrive, and Richard Taylor, now the banks head of investment banking, UK & Ireland;

Jim Renwick, once of UBS; and Alisdair Gayne from Morgan Stanley.In reality, as much as the moreestablished investment banks mightscoff, it is in danger of being a realthreat in advisory.

There is widespread belief in themarket that the driving force behindthe march of the investment banksequity business (it has for a longtime been a force in debt and fixedinterest) is the personality andambition of Bob Diamond.

With the purchase of Lehmans US

business and the constant hiringelsewhere in the group, Diamondhas thrown the banks weight

behind this initiative even wheninvestment banking has been seen asunfashionable, risky and at a time

when business volumes are at a low ebb. One rival said yesterday: Wevelost a couple of pitches recently toBarclays and on both occasions thepotential client said that Bob was allover them, telling them what

Barclays could do for them in termsof lending and other services.

In other words, Diamond isabsolutely wedded to the idea of theintegrated investment bank, usingrelationships in one arm to foster

business in another. This being the world that it is, and

with Barclay Capital standingaround fifth place in most leaguetables when it wasnt even in the topten a few years ago, rival investment

bankers are hoping that even if Diamond isnt forced out over theLibor scandal he will be suff iciently

weakened to slow his groupsrelentless pursuit of a top table placein the world of investment banking.

INSIDETRACK

DAVID HELLIER

Why rivals are banking on Diamonds d

EASYJET founder Sir Stelios Haji-Ioannou yesterday weighed in to thefurore surrounding the BarclaysLibor-fixing scandal, calling for thehead of Sir Mike Rake.

Rake, the Barclays senior independ-ent director who was yesterday pro-moted to deputy chairman, alsoserves as chairman of EasyJet.

As Mike Rake is chairman of therelevant audit sub-committee and amember of the risk managementand corporate governance sub-com-mittees [at Barclays], detection and

exposure of these wrongdoings wereultimately his responsibility, saidHaji-Ioannou, calling Rake the dogthat didnt bark.

Haji-Ioannou also accused Rake of having his finger in too many pies,and used the opportunity to suggesthe retire from his EasyJet duties. The Greek Cypriot tycoon claimed

BY LAUREN DAVIDSON that Rake had promised him in2009 before becoming EasyJetchairman that he would scale back his other City commitments to focuson EasyJet and BT, the telecoms giant

where he is also chair.Yet three years on he still clings on

to four big jobs including Barclays, which has just become more timeconsuming, and US-based McGraw Hill, added Haji-Ioannou. The EasyJet founder alleged former

KPMG International chairman Rakes work at EasyJet stands as a landmark conflict of interest, citing examples

where KPMG and BT have benefited

from deals with the low cost airline.EasyJets biggest investor continuedcalled for Rake to stand down fromEasyJet, adding in a statement: We

will consider using our right as amajor shareholder to call an extraor-dinary general meeting with MikeRakes removal from office as the soleitem of business.

Sir Stelios callsfor Rakes headover the fiasco

COMMODITY trading giant LouisDreyfus has been sued by a formersenior trader at rival Glencore,

who alleges that Dreyfus illegally cornered the cotton market last

year as prices tumbled fromrecord highs.

The trader, Mark Allen, accusedDreyfus of violating antitrust law

BY CITY A.M. REPORTER by artificially inflating prices of Intercontinental Exchange cottonfutures contracts expiring in May 2011 and July 2011.

Other defendants includeDreyfuss Allenberg Cotton andTerm Commodities units, andseveral individuals including

Allenbergs chief executive, Joseph

Nicosia, collectively seen as the biggest cotton traders globally.

Cotton lawsuit hits Louis Dreyfus

david.hellier@cityam.comFollow me on Twitter: @hellierd

7/31/2019 Cityam 2012-07-03

6/24

7/31/2019 Cityam 2012-07-03

7/24

RUSSIA51

INDIA55

GLOBAL48.9

TURKEY51.4

UK48.6

USA49.7

CHINA48.2 S. KOREA

49.4

TAIWAN

49.2

EUROZONE

45.1

MANUFACTURERS in the UK werehit less hard last month than inMay, though they remained indecline, according to Markit/CIPSdata released yesterday.

The purchasing managers indexfor the UK went up to 48.6, fromMays three-year low of 45.9, but itremains below the no-change levelof 50, showing a continued fall in

business activity in the sector.Economist Howard Archer at

IHS Global Insight said: UK manufacturers clearly face a very challenging domestic andinternational environment.Domestic demand is handicapped

by a squeeze on consumerspurchasing power [and] tighterpublic spending.

Eurozone weakness is limitingdemand for UK manufactured

goods, while exporters have hadto cope with sterling hitting a 33-month high in May, he added.

Input prices dived, falling at thefastest pace in three years.

Analysts believe this was mainly driven by an easing in global oilprices in the last quarter.

...but UK avoids the worst as decline

EUROZONE manufacturing was ham-mered again by political and finan-cial worries last month, according tosurvey data released by Markit yester-day. The overall purchasing managers

index (PMI) remained at 45.1 for theEurozone in June, slightly up fromthe preliminary estimate of 44.8, fol-lowing the same pace of decline inMay. The index records firms views on

manufacturing conditions valuesabove 50 show rising output, whereas

values below 50 signify decliningactivity in the sector.

European companies are reducinginventories and staffing levels as pro-duction and new orders fall, saidBerenberg Banks Christian Schulz.

Chris Williamson, chief economistat Markit, warned the situation may

worsen further in coming months.

BY BEN SOUTHWOOD Companies biggest fear is slumpingdemand, hit by heightened uncertain-ty, he said.

Spains PMI crashed to a 37-monthlow of 41.1, while Germanys hit athree-year low of 45. Greece, Italy andFrance all saw heavy declines, withPMIs of 40.1, 44.6 and 45.2 respectively.

Overall, only Ireland saw a meaning-fully positive value, hitting a 14-month high of 53.1. Austria posted50.1, indicating very slight growth.

Governor King calls for proactiveBank as QE bloats balance sheetBANK of England governor SirMervyn King has said it mustcontinue to pilot the economythrough tough times, as the Banksannual report revealed a 315.5bn

balance sheet caused largely by quantitative easing (QE).

Writing in the report, released yesterday, King defended theBanks loose monetary policy andnew credit boosting policy, namedthe Extended Collateral Term Repofacility. Our rapid progress intaking on new responsibilitiesshows that we are ready for thechallenges ahead, King said, also

BY JULIAN HARRIS referring to the Banksimpending new regulatory powers. We must play acentral role inimplementing the reformsthat are necessary toprevent such a costly financial crisis fromhappening again.

In a bid to boostthe economy, theBank hasexpanded its QEprogramme overthe last year.From the end of

February 2011 to 29 February 2012, the Banks balance sheetrose from 229.6bn to 315.5bn.

The report also revealed thatKing was paid 307,792, slightly

down on 2010-11. Deputy governors Charlie Bean

and Paul Tucker werepaid 260,401 and263,020 respectively.The data reflects a pay freeze taken by staff atthe Bank, though thepair saw their pensionpots boosted. The

Bank put 1.04m intoBeans pension and 1.35minto that of Tucker.

Eurozone PMI

9998 00 01 02 03 04 05 06 07 08 09 10 11 12

65

60

55

50

45

40

3530year

Source: Markit

50 = no change

TUESDAY 3 JULY 20127ECONOMIC CRISIScityam.com

$ )*&% *( *&% &%

- $ % &+(*")!&') *

&% &%

&* $% (. ! (

&% &%

+ # * * & , " $ " $ " * . + % * " $ + + ) *

Kings pay was revealed

MANUFACTURING IS BEING HIT ACROSS THE WORLD

Countries ranked by Manufacturing PMIGermany 45.0 36-month lowItaly 44.6 2-month lowSpain 41.1 37-month lowGreece 40.1 4-month lowNetherlands 48.9 2-month highFrance 45.2 2-month highChina 48.2 7-month lowUSA 49.7* 24-month low*

Manufacturing PMI in Europe65

60

55

50

45

40

352010 2011 2012

GermanyFranceItalySpainNetherlandsGreeceIreland

*

*Institute of SupplyManagement (ISM) data

SHOULD THE BANK OF ECUT INTEREST RATES?Interviews by Polly Young and Jamie Sutherland

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

Rates are low as they are right nowdont know what effect cutting the

again would actually have. I dont think it wincrease consumer borrowing any more. Muis dependent on banks willingness to lend

DIEGO SHINK&L GATES

CITYVIEWS

I cant see the benefit in cutting th

more as they are next to nothing away. I think people are cautious at the momtheyve got their money stashed under theiand that is where they are going to keep it

TIM MILLSFIDELITY

I think on balance they should keeinterest rates where they are. I don

think it will stimulate spending at all. Its nodenly going to pour money into peoples pounless mortgage rates come down on the ba

PHILIP WASLINGADM INVESTOR SERVICES

Manufacturersreport gloomyEU conditions

7/31/2019 Cityam 2012-07-03

8/24

7/31/2019 Cityam 2012-07-03

9/24

IN BRIEFHouse prices soar in Londonn House prices in London rocketed by7.7 per cent in the year to May, theLand Registry said yesterday faroutperforming the 0.4 per cent riseseen across the UK. The mostexpensive property sold in May wentfor 18.5m in central London; thecheapest recent property was sold inOldham for just 10,000, in April 2012.London remains the powerhouse ofthe UKs housing market, said PeterRollings of Marsh & Parsons.

Euro woes prompt asset jugglinn BNP Paribas is consideringrelocating some internationalactivities to deposit-rich markets likeBelgium, according to a spokeswomanfor the bank, as BNP and other Frenchbanks scramble to fill funding gaps ontheir balance sheet. By moving assetsaround its international chessboard,BNP would likely be able to reduce itsown intra-group lending lines to euroarea troublespots like Italy and Spain.

World Bank could aid euro aren The new head of the World Banksaid yesterday that he was open to thepossibility of the development lender

advising troubled developed nationslike Greece, a major shift for aninstitution that has focused on theworlds poor. As American Jim YongKim took the reins of the World Bank,he said his priority was to protectdeveloping countries at a pivotalmoment for a world economy thatappears to be losing steam rapidly.

A EUROZONE rescue plan devisedat last weeks crunch summit has

been thrown into doubt, after theFinnish government said it would

block the move along with theDutch authorities.

Leaders from the single currency area had announced that rescuefunds could be used in a flexibleand efficient manner to mitigatepressure on troubled states

believed to be a reference to pur-chasing of bonds on the secondary market.

But yesterday in Helsinki theFinnish government told its parlia-ment that it would seek to preventthe European Stability Mechanism(ESM) the planned new bailoutfund from being used to hooverup debt.

Meanwhile a spokesman from theDutch finance ministry reiteratedthat his government also did notlike the bond purchasing plan.

The Prime Minister said last

Finns and Dutchcast doubts onEurozone dealBY JULIAN HARRIS Friday he is not in favour of buying

up bonds it will be expensive andcan only be done if there is unanim-ity [among member states], thespokesman, Niels Redeker, warned.That means the Netherlands

would need to vote in favour.However, a get-out clause in the

ESMs rules could allow the meas-ure to be waved through, even if Finnish and Dutch opposition per-sists. If the European Central Bank and European Commission feel theEurozone is under threat, they canaction the rescue fund on the basisof an 85 p er cent majority vote.

Finland, which enjoys strongerpublic finances than most otherEurozone states, has proved a lead-ing cynic against a range of short-term measures to bail out indebtedmember states.

Meanwhile, Germanys constitu-tional court yesterday announcedthat it would begin a hearing on 10

July to determine whether thecountrys involvement in the ESM ispermitted by its constitution.

THE GREEK government should stop wasting time and money trying torenegotiate its bailout deal, andfocus on implementing reforms toget its economy back on a path togrowth, a top European CentralBank (ECB) official said yesterday.

Prime Minister Antonis Samaras wants to ease some of the toughausterity conditions attached to the 130bn (104.3bn) bailout, due tothe weak state of the economy.

But ECB executive board member

BY TIM WALLACE Jrg Asmussen rejected the idea thata slower readjustment would help,arguing the deal is good for Greece.

The fiscal measures under theprogramme have been designed togradually restore the sustainability of public finances, he claimed.

If Greece were on its own, theadjustment would have to be muchfaster and more drastic, given thatthe sovereign has lost access tofinancial markets. So theprogramme is actually helpingsupport the Greek peoples standardof living.

JOBLESSNESS in the Eurozone roseto a new record high in May,pushed up by lay-offs in France,Spain and even stable Austria, asthe two-and-a-half year debt crisiscontinued to eat away at thecurrency blocs fragile economy.

Around 17.56m people were outof work in the 17-nation euro areain May, or 11.1 per cent of the

working population, a new highsince Eurozone records began in1995, the EUs statistics office

Unemployment edges higheracross single currency area

BY CITY A.M. REPORTER Eurostat said yesterday.Unemployment will continue to

rise until we see an improvement inthe economy, and that may not beuntil next year, said Steen

Jakobsen of Saxobank. The nextfew months are likely to constitutea low in the growth cycle, he said,predicting a contraction in outputin the next quarter.

Economists at ING seeunemployment reaching as high as12 per cent if Europeanmanufacturing does not stage arecovery, they said yesterday.

TUESDAY 3 JULY 20129ECONOMIC CRISIScityam.com

The Eurozone is experiencing a record level of joblessness

Brokerage Services provided by TD Direct Investing (Europe) Limited (a subsidiary of The Toronto-Dominion Bank). Registered in England under No. 2101863. Registered ofce: Exchange Court, Duncombe Street, Leeds, LS1 4AX. Authorised and re gulated by the Financial Services Authnumber 141282), member of the London Stock Exchange and t he PLUS Markets. VAT Registration No. 397103051. www.tddirectinvesting.co.uk. Banking Services provided by TD Bank N.V.Incorporated in the Netherlands and r egistered as a branch in England and Wales under branch registratNumber 481) and subject to limited regulation by the Financial Services Authority (FSA rm refere nce number 216791). Details on the extent of our regulation by the Financial Services Authority are available from us on request. Apple, the Apple logo, iPod, iPod touch, and iTunes are trademis a service mark of Apple Inc. Android is a trademark of Google Inc. TDUK1369812.ADV

Trade on the go with theTD Trading AppNow available for iPhone , iPod touch and Android devices

TD Direct Investingwww.tddirectinvesting.co.uk0845 607 6002

TD Direct Investing has developed an award winning mobile app that helps you trade on the go. You can loginto your account securely to trade, view orders, track your portfolio or even create a Watch List to monitorstocks. Download the free TD Trading App today.We are giving away 20,000 in Amazon vouchers, 500 every working day between 25th June 2012 and17th August 2012. This daily prize draw is open to UK residents aged 18 years or over who buy or sell usingthe TD Trading App (Apple or Android). Trades made using the TD Financial Spread Trading App are excludedfrom this prize draw. One prize per person over the duration of the promotion. No trade necessary. Full offerterms are available at www.tddirectinvesting.co.ukThe value of your investments can go down as well as up. You may not get back all the money that you invest.

ECB rejects Greecesbailout negotiation

WEAK domestic demand isprompting businesses to increasingly look abroad for new sales, accordingto figures released this morning by the British Chambers of Commerce.

The service sector has reported itshighest level of forward-lookingexport orders since the start of 2007 prior to the credit crunch the Chambers (BCC) said today.

While domestic growthcontinues to bump along the

bottom, the silver lining is anincrease in firms looking for exportopportunities, and in many cases,

Sluggish sales in the UKcompanies to turn to exp

BY JULIAN HARRIS with countries outside Europe, saidBCC chief John Longworth. The BCCconsulted 7,805 firms, with the

balance of manufacturers reportinghigher exports growing seven pointsto +31 per cent. The balance of service sector firms showing higherexport activity rose eight points to+24 per cent.

Yet UK domestic sales progress wassluggish, the data showed. The

balances for both recorded sectorsstayed in positive territory, yetslipped among factories (by threepoints to plus nine per cent) andservices stagnated at +10 per cent.

FRANCE will have to find between6bn and 10bn this year and amassive 33bn in 2013 to meet itsEuropean deficit targets, or riskunnerving financial markets, thestate auditor told the new Socialist

government yesterday.Responding to President Francois

Hollande's request for a thoroughreview of state finances, the auditsaid a revenue shortfall wasthreatening deficit goals. While inline with economists predictions,the figures mean state spendingcuts are almost inevitable.

Frances auditconfirms hole

BY CITY A.M. REPORTER

7/31/2019 Cityam 2012-07-03

10/24

7/31/2019 Cityam 2012-07-03

11/24

7/31/2019 Cityam 2012-07-03

12/24

7/31/2019 Cityam 2012-07-03

13/24

G E T T Y

ESSAR Energy yesterday said itagreed to sell a 50 per cent stake inan offshore gas exploration block in Vietnam to Italian oil major Eni.Under the deal Eni will assumeoperator status for the block.

Further investment is required toestablish gas reserves in the block and no gas is being produced atpresent, Essar Energy said.

Block 114 is located in shallow waters off the coast of Vietnamand holds an estimated one trillioncubic feet of gas. The deal is yet to be agreed by the

Vietnamese government, the com-pany said in its announcement.

It added: The reduction in EssarEnergys stake in block 114, which

was previously 100 per cent, is inline with the strategy for its explo-ration and production business of

introducing strategic partners tohelp manage risk and of focusingon the development of its coreassets. The firms plan to drill two explo-

Essar Energy tosell its Vietnaminterest to Eni

BY HARRY BANKSration wells and conduct seismic tests

before decided the next steps for the block, Eni said yesterday.

Last week Essar Energy, whichrecently fell out of the FTSE 100,reported that its figures had beendented by a tax case with Indianauthorities. The company said Januarys ruling

against tax breaks had pushed it to apre-tax loss of $1.1bn (707m) for the15 months to 31 March. The company is pinning its hopes on

the Vadinar refinery Indias secondlargest private sector oil refinery withcapacity of 20m metric tonnes perannum, or 405,000 barrels per day.

SHARES in UK exploration firm Soco International jumped 6.9 per cent yesterday afterit announced plans to buy out its minority partner in its main oil subsidiary in Vietnam.Soco will pay $95m (61m) in cash to buy the 20 per cent in the Vietnam subsidiarythat it doesnt already own from partner Lizeroux Oil & Gas.

SOCO SOARS ON FAR EAST FIELD PURCHASE

Essar Energy Plc

26Jun 27Jun 28Jun 29Jun 2 Jul

125.00

122.50

120.00

117.50

115.00

p125.70

2 Jul

DELL said yesterday it will buy enterprise management softwaremaker Quest Software for $2.4bn(1.5bn) in cash, trumping a$2.17bn bid by private investmentfirm Insight Venture Partners.

Dell sparked a bidding war in June when it offered $25.50 per

share for Quest, outbiddingInsights initial offer in March of

Dell wins bidding war for QuestSoftware with $2.4bn cash deal

BY CITY A.M. REPORTER$23 per share. Insight later bid$25.75 a share for Quest.

The addition of Quest willenable Dell to deliver morecompetitive server, storage,networking and end usercomputing solutions and servicesto customers, said JohnSwainson, president of Dell

Software Group.

TUESDAY 3 JULY 201213NEWScityam.com

JP MorganCazenove

Land SecuritiesAvivaLloyds TSBSlaughter & May Lloyds TSBSlaughter & May Lloyds TSB JP Morgan Land SecuritiesLand Securities

2011 Retail Bankof the Y

Lloyds TSBSlaughter & May

2010 Law Firmarf the Y

2010 MarketingCampaign

arof the Y

2011 Retail Bankarhe Y

Lloyds TSB

2011 InvestmentarBank of the Y

2011 PropertyFirm of the Y

JP MorganCazenove

Land Securities

2011 Propertyarthe Y

Land Securities

Cranswick acquires Kingstonn Pork supplier Cranswick yesterdaysaid it has acquired cooked and roastedmeat producer Kingston Foods.Cranswick said the move would helpbroaden the companys customer base.Cranswick said it has acquired theentire issued share capital of KingstonFoods, which had gross assets of 3.7mon 27 January. Tony Turner and Paul

Williams will continue in their currentpositions as managing director andoperations director once they have soldthe firm.

Hansteen seals warehouse dealn Property investment companyHansteen Holdings yesterday said it hadcompleted the purchase of a portfolio ofsix warehouses in Germany from Dexus

Funds Management for 26m (21m).The purchase, which was funded fromthe firms existing cash pile, reflects aninitial yield of 13.77 per cent. The proper-ties total 127,000 square metres.Hansteens joint chief executive IanWatson said: We believe the portfoliorepresents fundamentally great value ona vacant possession basis. The fact thatis that in addition it combines a high run-ning yield, with potential to add value.

Profits surge at Omega Diagnosticsn Allergy testing specialist OmegaDiagnostics said yesterday its profit hadsoared by 36 per cent to 1m in the yearto 31 March. Revenue jumped by 41 percent to 11m. Its allergy testing divisiongrew turnover by almost a third to4.5m, and its food intolerance kits put

on 10 per cent growth to hit 3.9m inrevenues. However its infectious diseasedivision saw revenue dip by two percent. The company said it was concen-trating on markets in India China, Russiaand Brazil for more growth.

Linde plans share sale to fund bn German industrial gas firm Lindeplans to raise up to 1.5bn from selling

new shares to help fund its purchase ofLincare Holdings, which will put it aheadof Air Liquide in the medical gas market.Linde has agreed to pay $4.6bn for theFlorida-based provider of oxygen andrespiratory therapy services to patientsin the home, boosting its position in amarket benefiting from cost cuts by hos-pitals and an ageing population. Lindeshares fell 1.8 per cent following news ofthe fundraising measures.

IN BRIEF

7/31/2019 Cityam 2012-07-03

14/24

TUESDAY 3 JULY 201214 cityam.com

LONDONREPORT

US stocks edhigher despisigns of slum

US stocks edged higher yesterday,shaking off a surprisecontraction in USmanufacturing, which some

investors took as a signal the FederalReserve will take more forceful actionsto boost the economy. The Institute for Supply

Managements manufacturing indexcame in at a lower reading thanexpected in June, registering a contrac-tion in the sector for the first timesince July 2009. The S&P was lower for much of the

session but closed slightly higher inlate gains.

Still, industrial shares were underpressure after the data, the latest in astring of indicators pointing to deterio-rating economic conditions aroundthe globe. Boeing lost 1.5 per cent to

$73.18 and Caterpillar was off 1.4 percent at $83.68. The weak data supported the view

that conditions were worsening, andinvestors said it made the Fed morelikely to adopt additional easy money policies, like more quantitative easing.

The ISM reading was pretty weak.But it is pretty positive that the markethad an excuse to sell off and instead

were resilient, said Mike Gibbs, chief market strategist at Morgan Keegan inMemphis, Tennessee. This givesinvestors a little more confidence thatQE3 may be on the cards.

Eurozone manufacturing shrank again in June and factories are prepar-ing for worse, according to business.Manufacturing in China also weak-ened in June with export orders.

UBS cut its year-end target on theS&P 500 index to 1,375 from 1,475,implying that the market would only

rise about one per cent from currentlevels over the next six months.

BRITAINS top shares extended gains

yesterday, led by rallies in bankingand commodity stocks, with themarket primed for fresh economic

stimulus moves later this week, buildingon measures agreed by an EU summit tocounter the Eurozone debt crisis.

But some commentators were more pes-simistic on the market outlook, feelingthat with uncertainties still hanging overthe Eurozone deal, any disappointment onthe detail of the new measures could trig-ger a sell-off.

I suppose a bit of momentum coming infrom the summit on Friday, which Iassume is the positive tone in the markettoday. That could change when we getmore details about how it is going to work out, because at the moment there are a lotof open questions, said Peter Dixon, theUK economist at Commerzbank inLondon. The FTSE 100 closed 69.49 points higher,

or up 1.25 per cent, at 5,640.64. The UK

blue chip index jumped 1.4 per cent onFriday.

Volumes were relatively thin, at 74 percent of the 90-day daily average, way below

the level seen last Friday, showing sluggishtrading activities as investors are still cau-tiously positioned in a market that stillrequires a solid driver.

Financial stocks were in demand, sup-ported by Fridays Eurozone news giventhe sectors direct exposure to the blocssovereign bonds, with insurer Aviva thetop blue chip gainer, up 3.7 per cent.

Barclays rallied 3.4 per cent after havingsuffered a 17 per cent slump in the pastthree days over a Libor-fixing scandal thatcost chairman Marcus Agius his job.

UK banking and commodities rallyon likelihood of economic stimulus

BESTof theBROKERSAvocet Mining PLC

160

140

120

100

80

p

26 Jun 27 Jun 28 Jun 29 Jun 2 Jul

77.102 Jul

AVOCET MININGCanaccord Genuity has cutits recommendation onthe gold miner from buyto holdand reduces itstarget price to 100p from245p after it lowered 2012production guidance by 15per cent.

DASHBOARDCITY NEW YOREPORT

YOUR ONE-STOP SHOP FOR JOB MBROKER VIEWS AND MARKET RE

FTSE

5,600

5,650

5,450

5,500

5,550

26 Jun 27 Jun 28 Jun 29 Jun 2 Jul

5,640.642 Jul

Halfords Group PLC237.50235.00232.50230.00227.50

222.50225.00

220.00

p

26 Jun 27 Jun 28 Jun 29 Jun 2 Jul

223.802 Jul

HALFORDSPanmure Gordon hasdowngraded the retailerfrom buy to hold andcut its target price from315p to 220p, as it expectsit to be one of the losersfrom the Jubilee tradingperiod and poor weather.

Randall and Quilter Investment Holdings PLC102.00

101.50

101.00

100.50

100.00

99.50

p

26Jun 27Jun 28Jun 29Jun 2Jul

100.752 Jul

RANDALL ANDQUILTERNumis has upgraded thespecialist insurer fromadd to buy with anunchanged target priceof 130p, after it resolved

disputes and gave areassuring AGM update.

KingfisherKaren Witts will join the homeretailers board as financedirector in October. She iscurrently finance chief forAfrica, Middle East, Asia andAsia Pacific at Vodafone, and isalso a non-executive director ofWolseley. Witts worked at BTGroup for more than 10 years,most recently as finance headfor BT Retail.

DechertDr Markus J Friedl has joined the international law firms

corporate and securities group as a national partner inthe Frankfurt office, which was established this year.Friedl has previously worked for other international andGerman law firms in Frankfurt, and was most recently acounsel at Schilling Zutt & Anschtz. Dechert now hasmore than 25 lawyers working in Germany.

MarshThe insurance broker has appointed Andrew George tochair its global energy practice. George was previouslyhead of Marshs energy practice for Europe, the MiddleEast and Africa and succeeds Jim Pierce, who will nowlead Marshs global industry practices group. AndrewHerring, head of Marshs wholesale energy practice, will

be appointed to Georges previous post.

JHCEric Dickinson has been appointed accounts director atthe IT solutions company. Dickinson has over 25 yearsexperience in the financial industry, having worked atSocit Gnrale Securities Services as UK head ofsales and global relationship management, as well asat The Bank of New York (now BNY Mellon) and TCASynergo.

Chadbourne & ParkeCraig Barnett is joining the international law firm as anassociate in the insolvency and restructuring group at itsLondon office. Before joining the firm, he spent fiveyears at Dundas & Wilson as an associate in thecorporate recovery department.

WHOS SWITCHING JOBS Edited by Jamie Sutherland

+44 (0)20 7092 0053morganmckinley.comSPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT

CITY MOVES

To appear inCITYMOVESplease email your career updates and pictures to citymoves@cityam.com

in association with

Will the government meet its borrowingfor the current parliament?

%797.3

13.7

Yes

No

Dont know

VOICE OF THE CITY

PoliticsHome.comPoliticsHome.comIn association with

Apply to join today at WWW.CITYAM.COM/PANEL

Is the UKs public borrowing out of cont

%32.4

4.163.5

Yes

No

Don t know

To what extent do the governments debt leharm the economy as a whole?

%

37.9

5.5

5.5

2.31.8

47Greatly harmSomewhat harmHave a neutral e ectSomewhat bene tGreatly bene tDont know

CITY professionals have voiced deep scepticism overthe possibility of thecoalition meeting its

borrowing targets, with lessthan one in seven believingthat the government canhit its forecasts.Our Voice of the City panel,run in association withPoliticsHome.com, foundthat just 13.7 per cent of respondents thought thatthe current parliament

would succeed with its Plan A targets. A full 79 per cent believethat the government willfail, after the national debtploughed through the 1trillion barrier.

Almost two thirds of respondents saw the UKspublic borrowing as out of control, while just under athird demurred.Seventy-two per cent

blamed the profligacy of Gordon Browns Labour

government for the debtcrisis, with just over 15 per

cent blaming the currentcoalition government, and10.5 per cent placing the

blame on the Eurozone,financial services orconsumers. In order toresolve the problem, 70.8

per cent pointed tospending cuts. Though just8.7 per cent thought taxrises were a good idea, 40.2per cent thought the

government needed toenforce existing tax rules

more effectively. Some 44.8per cent believed tax cutscould bring extra revenueand were preferable.In their comments,respondents lambastedchancellor George Osborneas economically illiterate,and attacked PM DavidCameron for failing to

make good on his promisesof radical cuts. They alsopointed to regulation andhigh tax rates as majorrestrictions on recovery.One argued that the truesize of the national debt

was much higher due toprivate finance initiativeliabilities.

7/31/2019 Cityam 2012-07-03

15/24

7/31/2019 Cityam 2012-07-03

16/24

7/31/2019 Cityam 2012-07-03

17/24

7/31/2019 Cityam 2012-07-03

18/24

Facebook Inc

1 Jun 11 Jun 28 Jun

32

30

28

26

$

TUESDAY 3 JULY 201218 cityam.com

AS Barclays shares bounced back yesterday, this served asan important reminder toretail traders that the

markets are not rational and it iseasy to get your fingers burned.

Anybody set up to take a shortposition on the FTSE open wouldhave been hurt as the bank wenton to be one of the strongestperformers of the London session up 3.4 per cent on the day to finishat 168.4p. But why? The public may have received its sacrificial offeringin the form of chairman Marcus

Agiuss resignation and the movemay have taken some pressure of chief executive Bob Diamond, whois due to testify to the Treasury select committee on Wednesday

but this does not change thefundamentals of the stock. Nordoes it affect last weeks 290mfine for abusing the BBA Liborestimated interest rate, or thepossibility of more headstumbling. Although weve beenspared a Leveson-type publicenquiry, with Hugh Grant grillingBob Diamond about the effects of a shifted Libor quote on a turboswap position there will be aparliamentary inquiry into theLibor scandal.

But this is nothing new once themarkets got the scent of blood, itseemed that spread betters were askeen to short Facebook as retailinvestors were keen to blow theschool fees on buying stocks in thefirst place. Trading according to thenews headlines is the most straight-forward and easy to understandapproach out there a bank receiv-ing publicity is easier to grasp thana bullish engulfing candlestick pat-tern on a chart. According to AngusCampbell, head of sales at CapitalSpreads, sometimes markets simply over-react to headlines and shareprice movements can go too far.This is certainly the case withBarclays, where its share price

plummeted some 15 per cent after

Barclays stabilises value investors retu

The resignation of Marcus Agius does not change Barclays fundamentals

Beware of tradingon public sentiment,writesCraig Drake

TRADINGMANAGEMENTWEALTH

THETIPSTERHoping for a high-flying statement

BUDGET airlineEasyjet will behoping that the Eurozone crisisis not going to put off peoplefrom travelling this summer, as

it issues its a trading statement onThursday. Its share price has done itsown share of high flying, putting onover 30 per cent in 2012. With the farfrom clement conditions weve beenexperiencing in the UK, who doesntneed a holiday? Capital Spreadsquotes a price of 528.3p-531.2p forEasyJet.BSkyB has evolved into a three-dimensional company, with productsand services offered through thetelevision, through online media and

now through handheld devices. Thecompany dominates the pay-per-view sports market and innovativenew hardware has given the companya definitive edge. The share pricesuffered following the News Corp.acquisition fiasco, and in the shortterm it slipped back from its rangehighs on Friday. But with full-yearresults due on 26 July, there are threeweeks to price in any upsidepotential. Spread Co quotes 688.45p-689.95p for BSkyB.Investors will be looking for updateson exploration activity, as well asproduction, fromTu llow Oil when itreleases a trading statement

tomorrow. The company reportedreservoirs in late March and increasedestimates in May. Investors will behoping to see positive reports fromits most recent trading activity inFrench Guiana. A positive readingfrom the recent Ghana drilling projectin the Jubilee Field will also likely actas a catalyst for upside. Tullowexperienced a number of setbacksafter initial production got underway,and so investors will be looking fordetails from the report of when fullproduction will be resumed. CMCquotes a price of 1,493.99p-1,494.99p for Tullow Oil.

CRAIG DRAKE

the news of the Libor f ixing scan-dal broke, and already yesterday

we saw buyers dip their toes back into the stock thinking that its a

bargain. Other banks saw theirshare price rise, but with itunlikely that Barclays was theonly bank to spit in the soup,other fines will follow. Accordingto Campbell, last weeks fall pre-sented a great opportunity toinvestors: Of course, theres noguarantee that they will add to

yesterdays bounce, but aftersuch steep falls, its difficult notto think that they are now a

buy. The Libor scandal will continue

to run, but recent price actionhas been a lesson to traders of the dangers of trying to catch afalling knife, and its a lessonthat is applicable to any stock

being pounced upon by the mar-

kets.

fx360.comtwitter.com/fx360facebook.com/fx360

The contents of this column are provided for general information purposes only. One should consider the appropriatenessof the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612

DAVID MORRISONSENIOR MARKET STRATEGIST, GFT

Barclays PLC

26 Jun 27 Jun 28 Jun 29 Jun 2 Jul

200

190

180

170

160

p 168.402 Jul

Loans from the proposed ESM will not be senior to other debts

FRIDAYS trading brought the first halfof the year to an extraordinaryconclusion. Risk assets soared, asinvestors responded to news from the

EU summit. Expectations for a positiveoutcome from the meeting were low tonon-existent. Yet, despite the well-publicised objections by Germany in thelead-up, European leaders cobbledtogether an agreement to alter the way thatbailout funds can be used. European bailoutfacilities will be used to recapitalise banksdirectly. In this way, future loans including the latest one for Spain will notadd to troubled countries debt loads. Ontop of this, traders cheered theannouncement that loans from theproposed European Stability Mechanism(ESM) will not be senior to other debts. Soinvestors will be happier believing that theirexisting holdings will not becomesubordinate. The fact that this was alreadyimplied in previous statements wasignored.

But before all this can happen, a singlebank supervisor for the Eurozone must beestablished, with European Central Bank(ECB) involvement. This suggests a movetowards a banking union, althoughsupervision is a long way short of thedeposit guarantee scheme, or a bankresolution authority, that many economistsbelieve is vital for the Eurozones continuedexistence. European leaders also agreed tonegotiate closer fiscal cooperation and a120bn (96bn) package to help stimulategrowth and job creation.

Much was made of the announcementthat funds from the European FinancialStability Facility (EFSF) and ESM will beused to buy up the sovereign debt oftroubled countries, with the aim of keepinga lid on bond yields. Previously, the ECBcontroversially bought sovereign debt oftroubled peripheral counties in thesecondary market through its SecuritiesMarkets Programme. The ECB has held offfor over four months now, so it looks as ifthe baton has been passed on. But it isworth remembering that there is onlyaround 200bn left in the EFSF. The credit

facility in the ESM should total 500bn.While significant, this will not be enough tobackstop Spain, let alone Italy. Of this500bn, the ESM has paid in capital of80bn; the rest is pledges from Eurozonecountries. In terms of which countries standbehind the two funds, Germany providesguarantees for 27 per cent; France for 20 percent; Italy for 17 per cent; and Spain 12 percent. In consequence, if yields on Spanishand Italian sovereign debt rise back up todanger levels, then these two countriesstand as significant guarantors to a bailoutfund that will be used to buy their ownbonds. Understandably, given the extent ofits potential liability, Germany opposes anyincrease in the ESM.

Nevertheless, the summit has beenviewed as a major victory for France, Italyand Spain, and a climb-down for Germany as German Chancellor Merkel has alwaysinsisted that liability and control must gotogether. But as more flesh is put on theagreement, the more likely it is that Germanywill insist on some conditionality. Alreadythere is talk that Germany wants individualgovernments to be liable should their owncountrys banks fail to pay back bailoutloans. In addition, it has been reported thatGermany is ready to push for the

implementation of a financial transaction tax(FTT), and banks will only be able to accessfunds from the ESM if they are in countriesthat have signed up to the new tax.

The bullish view is that the agreementsmade at this EU summit have broken thechains linking sovereign and banking risk.Many also see progress towards political andfiscal integration, which will, it is hoped,ultimately keep the Eurozone together andso ensure the survival of the euro. Analternative view is that EU leaders have onceagain come up with yet another short-termfudge, which simply buys the Eurozone a bitmore time. Peripheral countries remainburdened by debt and solidly in recessionwith no apparent way of achieving economicgrowth. Last weeks summit has done little tochange this fundamental dynamic.

ECB MANOEUVRES HAVE NOTCHANGED THE EU DYNAMICS

7/31/2019 Cityam 2012-07-03

19/24

7/31/2019 Cityam 2012-07-03

20/24

ROAST has been around for six years. There was a time when it was one of the foodiest restaurantsin London, by which I mean thesort of place those on the cuttingedge would go to with their mates.

Roast still does British cuisine (pre

doesnt disappoint. Everything insight is painstakingly authentic the bread arrives in cloth sacks; youcan see every imperfection in theearth-tone crockery, which was pre-sumably crafted by simple mountain-folk, and the low-hanging fishbowllight fittings cast an appropriately dim, lazy glow.

The food is clean, crisp and impossi- bly sometimes infuriatingly healthy: smoked, pickled, rolled in

burnt hay or, more often than not, just served raw. It tastes like it was for-aged from the icy tundra by a buxomfishermans daughter. Even the poshpork scratchings were deceptively light part of me wanted to run

home afterwards and smear myself in lard and chocolate. At its best, the food is superlative.

The asparagus poached, fried and,of course, raw with pheasants egg,

was a highlight: just the right combi-nation of crispy and earthy. Otherdishes were harder to love the lump-fish roe with onion sauce and chick-

North Road is studiously authentic all smoked wood and plunging fishbowl light fittings.

This Danish gem isalways interesting,saysSteve Dinneen

TUESDAY 3 JULY 201220 cityam.com

LIFE&STYLERESTAURANTS

EPISODE 60 RETURN OF SUNDAY LUNCHWeve reinstituted Sunday lunch chezCashman. My parents sit at one end ofthe table and Emmas a t the other.Emma and I are scheduled to sitbetween our respective in-laws butwould both prefer not to do so. Mariaand Noel sit mid-table, opposite oneanother. They are intended to operateas buffer states but as I survey thescene, I wish wed also invited KofiAnnan and Ban Ki-moon. A diplomaticincident is surely on the cards.Meanwhile, the twins sleep peacefullyupstairs.

I approach the table with a decentbottle of claret. Noel chose this, Iannounce to the grandparents. Its thetruth. Weve had a rather successfuland inexpensive run recently, followingNoels wine selections. Hes quite thelittle sommelier. Grandparents cluck,

CITYDADalthough I can see Emmas fatherscanning the kitchen in the hope thatweve backed Noels judgment to thetune of at least half a case.

No, daddy, corrects Noel, waitingfor the admiring grandparental whitenoise to abate. I dont smell it. I chooseby the label. Ha-has all round. And

then, in the absence of skilled

diplomatic intervention, Noels in likeFlynn, continuing his offensive. Daddy,isnt it if the Rozzers are after you youshould put your hands in your pockets,stay silent and keep walking? I sensemy fathers mischievous influence. Noelturns to his maternal grandparents,between whom Im sitting. And if youwant to rob someone, the best thing isto break down their door with an axe,sneak into their bedroom and steal theirkeys and leave your keys. Then the nextnight let yourself in and steal all theirstuff.

Emmas father chokes on his peas.Her mother reaches for the bottle ofclaret. And my father feigns deafness,barking What? What was that, littleman? City Dad will be continued next week. For previous episodes, please see

www.cityam.com

RESTAURANTNORTH ROAD69-73 St John St, EC1M 4ANTel: 020 3217 0033

FOOD hhhhiSERVICE hhhhiATMOSPHEREhhhhi

Cost per person without wine: 75

RESTAURANTROASTThe Floral Hall, Stoney Street, SE1 1TLTel: 0845 034 7300FOOD hhhiiSERVICE hhhhiATMOSPHEREhhhii

Cost per person without wine: 45

Back then in 2006 the cuttingedge was British food, locally sourced and (seemingly) simply made. I recall once going thereand receiving terrible service butmindblowing food. A friend once

boasted of the time he ate heart atRoast and loved it.

But with Marcus Verberne(formerly of Caprice Holdings),newly at the helm, I thought it washigh time I went back.

So how does Roast fare in the gastronomical London of 2012, when dayboat fish and localasparagus no longer elicit oohsand aahhs?

Not badly. The food is still freshand it still has one of the best

views in the area of BoroughMarket and the streetssurrounding. But on entering after a hiatus of several years Icouldnt help but notice the decor

felt out of date. The bar furniture was slightly corporate, and there issomething slightly lacking in styleabout the main dining room, too.

And the food was a little pricey, we thought. Starters, whichinclude the likes of Loch Duartsalmon with soused cucumbersand Atlantic prawn cocktail, are inthe 10-15 region and whiletasty probably wont blow yourmind. You can rest assured,though, that whatevers in season

will be on the plate: heritagetomatoes feature prominently now; when we visited, it was all

about asparagus.Mains start to get a bit moreinteresting: at least, they soundinteresting. Goat curry;chargrilled lamb neck with spelt

and yoghurt salad. We had gorgeous-sounding duck and fish.The fish a white dayboat catch

was cottony and well-made, butthere was some disappointment

with the duck, which was toochewy.

The puddings are impressive. Inparticular, the sticky date pudding

with neighbouring Neals Yardcreme fraiche. And who wouldnt

want Green & Black's chocolateand sea buckthorn berry mousse?Exactly.

Theres also a good English wineselection we amused ourselves

with Chapel Down fizz and somelovely white to go with. Roast is a good restaurant, but its no longeroutstanding.

Zoe Strimpel

S CANDINAVIA is having quite amoment. We watch its TV shows, we wear its jumpers, we buy its furniture (while hopingpeople wont notice it came flat-packed in a cardboard box) and, atleast since Noma won the WorldsBest Restaurant award, we eat itsfood. There is something reassuringly

real about our imagined version of Scandinavia a kind of amalgama-tion of Sweden, Norway andDenmark, which ignores the millen-nia of grand, individual history of each and replaces them with aDisneyfied fairytale-land of glacialstreams, wild elk and ruddy-cheekeddames wearing heavy-knit jumpers.

North Road, located somewhatcounter-intuitively on St John St,

Roasts airy and light dining room commands great views of Borough Market.

en skin was rather insipid, no matterhow much I tried to convince myself otherwise.

If there is ever a toss-up betweeninteresting and convenient,Danish chef Christoffer Hruskova willopt for the former. Quail eggs arrivein a ceramic pot atop a mound of hay.I didnt have any cutlery do I use my fingers? Can you eat the hay? (yes anddefinitely not, I discovered).

But, for the best part of 300 fortwo people (including the cheese and

wine tasting menus we didntexactly hold back), its what I expect something Ill still be talking aboutin a few months time. For that kindof money I want an experience: a glo-rious failure (which North Road isnt)is preferable to something dispas-sionately tasty, which you can get fora third of the price. To finish, we were served whatlooked like a bonsai tree, its foliage a

wisp of powder-pink candyfloss, dot-ted with tiny leaves. By this stage, wedidnt worry about eating with ourhands (it would take a particularly self-loathing member of the middleclasses to eat candyfloss with a knifeand fork). There was, however, a dis-cussion between my mother and Iover whether you should attempt toeat the soil. It certainly looked likereal earth and it had a stick pokingout of it, which I tend to use as a ruleof thumb for not putting somethingin my mouth. I swallowed a finger-ful anyway. North Road is that kindof place give it a try, you might bepleasantly surprised. It turns out youcan eat the soil.

North Road is a Scandinavia

7/31/2019 Cityam 2012-07-03

21/24

21TV & GAMEScityam.com

T E R R E S T R I A LBBC1

SKY SPORTS 16pm Live T20 Cricket 9.30pmSpecial Report 10pm Time of OurLives 11pm Football Asia 11.30pmSporting Greats 12am T20 Cricket2am Time of Our Lives 3am FootballAsia 3.30am Sporting Greats4am-6am T20 Cricket

SKY SPORTS 27pm Live Winning Post 9pm Cycling9.30pm Getting to Greenwich 10pmPremier League Poker 12am Super

League Backchat 12.30am SportsUnlimited 1.30am British MotocrossChampionship 2.30am-4.30amPremier League Poker

SKY SPORTS 36.30pm LPGA Tour Golf 8pmEuropean Seniors Tour Golf 9pmSports Unlimited 10pm SuperLeague Backchat 10.30pm BritishMotocross Championship 11.30pmFormula 2 Championship 12.30amChallenge Series Golf 1am EuropeanSeniors Tour Golf 2am-3.30amLPGA Tour Golf

BRITISH EUROSPORT6.45pm Live UEFA Under-19sChampionship Football 8.45pmCycling: Tour de France 10.15pmMotoGP 10.45pm LamborghiniSuper Trofeo 11.15pm WorldSeries by Renault 11.45pm CarRacing 12.15am-12.30am HorseRacing Time

ESPN7pm FA WSL Review Show 7.30pmAustralian Football International

2012 8.30pm Beach Soccer:England v Belarus. 9.30pmBundesliga 10pm 30 for 3011.30pm Press Pass 2012 12am FAWSL Review Show 12.30am SerieA 1am Live World Series of Poker2012 3am Tottenham Hotspur vReading: 2007/08 3.30am CharltonAthletic v West Ham United:2001/02 4am Manchester City vBurnley 2009/10 4.30am LeicesterCity v Arsenal: 1997/98 5amArsenal v Middlesbrough: 2004/055.30am-6am Manchester United vIpswich Town: 1994/95

SKY LIVING7pm Criminal Minds 8pm TheBiggest Loser USA 9pm Katie 10pmCriminal Minds 11pm Bones 12amKatie 1am Supernatural 1.50amMedium 3.30am Bones 4.20amAmericas Next Top Model5.10am-6am Passport Patrol

BBC THREE7pm Doctor Who 7.45pm DoctorWho Confidential 8pm Dont Tell theBride 9pm Coming Here Soon 10pm

EastEnders 10.30pm Live at theElectric 11pm Family Guy 11.45pmAmerican Dad! 12.30am ComingHere Soon 1.30am Live at theElectric 2am Russell Howards GoodNews 2.30am Can We Trust thePolice? 3.25am Dont Tell the Bride4.25am-5.25am Kidnapped andDrugged for Family Honour

E47pm Hollyoaks 7.30pm How I MetYour Mother 8.30pm The Big BangTheory 9pmFILM Mission:Impossible III 2006. 11.30pm The

Ricky Gervais Show 12.05am TheBig Bang Theory 1.05am Scrubs1.35am How I Met Your Mother2.05am Rules of Engagement2.25am The War at Home 2.50amDesperate Housewives 3.30am90210 4.10am Greek 4.55am-6amSwitched

HISTORY7pm Storage Wars 7.30pm PawnStars 8pm Cash Cowboys 9pmStorage Wars 10pm AmericanRestoration 11pm Storage Wars11.30pm Pawn Stars 12amAmerican Pickers 1am CashCowboys 2am AmericanRestoration 3am Swamp People4am The Last Days of World WarTwo 5am Pawn Stars 5.30am-6amAmerican Restoration

DISCOVERY7pm Bear Grylls: Born Survivor8pm Wheeler Dealers 9pm GoldRush 10pm Deadliest Catch 11pmRiver Monsters 12am Gold Rush1am Deadliest Catch 2am AuctionKings 3am American Chopper

3.50am Ice Pilots 4.40am BearsWild Weekend with Jonathan Ross5.30am-6am Destroyed in Seconds

DISCOVERY HOME &HEALTH7pm Supernanny US 8pm Paralyzedand Pregnant With Twins 9pm TheGirl with Eight Limbs: A BodyshockSpecial 10pm Untold Stories of theER 11pm Emergency 12am The Girlwith Eight Limbs: A BodyshockSpecial 1am Untold Stories of the

ER 2am Emergency 3am WifeSwap 4am Birth Stories 5am-6amBirth Days

SKY17pm The Simpsons 8pm AshleyBanjos Secret Street Crew 9pmStarlings 10pmFILM ForrestGump: Drama, starring Tom Hanks. 1994. 12.45am Road Wars 1.15amTransvestite Wives 2.05am RoadWars 2.55am Its Me or the Dog3.45am Emergency Animal Rescue4.35am Airline 5.05am-6am DontForget the Lyrics

BBC2 ITV1 CHANNEL4 CHANNEL5

S A T E L L I T E & C A B L E

6pm BBC News6.30pm BBC London News7pm The One Show7.30pm EastEnders: BBC News8pm Holby City9pm Turn Back Time TheFamily10pm BBC News

10.25pm Regional News;National Lottery Update10.35pm CHOICE Imagine12.05amFILM Infamous 2006.2.05am Weatherview 2.10am SignZone: The Fish Market: InsideBillingsgate 3.10am Sign Zone: APicture of London 4.10am SignZone: Great British Menu4.40am-6am BBC News

5.50pm Wimbledon 2012: Livecoverage of the eighth daysplay.8pm CHOICE Today atWimbledon: Highlights of thewomens singles quarter-finals.9pm Line of Duty: Arnott andFleming close in on Gatess

secret.10pm QI:10.30pm Newsnight: Weather11.20pm The Secret History of Our Streets: The changingfortunes of Portland Road,Notting Hill.12.20am BBC News4am-6am BBC Learning Zone

6pm London Tonight6.30pm ITV News7pm Emmerdale8pm Love Your Garden:9pm Bomber Command: JohnSergeant pays tribute to theaircrews of RAF BomberCommand.

10pm ITV News at Ten10.30pm London News10.35pm FILM Passenger 57:Action thriller, with WesleySnipes. 1992.12.15am Jackpot247; ITVNews Headlines2.45am Loose Women3.35am-5.30am ITV Nightscreen

6pm The Simpsons 6.30pmHollyoaks 7pm Channel 4 News7.55pm Channel 4 Presents: London2012 Will Bayley Part III 8pmEmbarrassing Bodies: Live from theClinic 9pm CHOICE Gordon BehindBars 10pm Six Million DollarConman: True Stories 11.40pmRandom Acts 11.45pm 8 Out of 10

Cats: Best Bits 12.30am 4thought.tv 12.35am Steve Coogan: The ManWho Thinks Hes It 1.35amTriathlon 2.30am KOTV BoxingWeekly 2.55am Americas CupUncovered 3.20am FIVB BeachVolleyball 4.15am The Grid 4.40amBritish F3 5.10am FIM SuperbikeWorld Championship 20125.35am-6am Ironman 2012

6pm Home and Away6.30pm 5 News at 6.307pm Ice Road Truckers:Deadliest Roads: 5 NewsUpdate8pm Worlds Toughest Prison:5 News at 99pm CSI: Crime Scene

Investigation10pm Big Brother11pm Big Brothers Bit on theSide12am Banged Up Abroad12.55am SuperCasino4am Great Artists 4.25am WildlifeSOS 4.50am Wildlife SOS5.10am-6am House Doctor

Fill the grid so that eachblock adds up to the totalin the box above or to theleft of it.You can only use thedigits 1-9 and you must notuse the same digit twice ina block. The same digit mayoccur more than once in arow or column, but it mustbe in a separate block.

COFFEE BREAK

Using only the letters in the Wordwheel, you haveten minutes to nd as many words as possible,none of which may be plurals, foreign words orproper nouns. Each word must be of three lettersor more, all must contain the central letter andletters can only be used once in every word. Thereis at least one nine-letter word in the wheel.

Place the numbers from 1 to 9 in each empty cell so thateach row, each column and each 3x3 block contains all thenumbers from 1 to 9 to solve this tricky Sudoku puzzle.

Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

KAKUROQUICK CROSSWORD

LAST ISSUESSOLUTIONS

KAKURO

WORDWHEEL

SUDOKU

SUDOKU

QUICK CROSSWORD

WORDWHEEL

16 15 24

16 6

17 33

6 15

29 10

12 11

14 28

13 12

34 10

14 18

8 3 14

11

12

10

35

22

12

30

7

13

23

30

10

7

13

6

28

4

17

41

20

11

16

ACROSS

1 Small boxor holdingvaluables (6)

6 Person who servesat table (6)

7 Thin, scanty (6)9 Attentive (7)

10 Famous Americanbattle, DavyCrocketts last (5)

12 Combustiblesubstance derivedrom organicmatter (7)

17 Paces (5)18 Act as a go-

between (7) 20 Take or

granted (6)21 Hairy acial

growths (6) 22 Rests on bended

legs (6)

DOWN

1 One o two actors whoare given the samestatus in a lm (2-4)

2 Insect considered divineby ancient Egyptians (6)

3 Afectedly daintyor rened (4)

4 Characteristic mentalattitude (7)

5 Variety show withtopical sketchesand songs (5)

8 Expression usedto righten awayanimals (4)

11 Imitative behaviour (7)13 Puts into servi ce (4)14 Bean or pea plant (6)15 Things o value or

use ulness (6)16 Number indicated by

the Roman VII (5)19 Duty (4)

I

UD

HNL

P

GO

G R E E N N I G E R

A B M N I

M U M B A I S I G N

B I S K I G

L E N S E D E W

E C A R R I E R C

P E R A R A T A

L D A B T C

A N T I L O G O U T

S N E I U

T O W E L A N G U S

1 6 8 5 1 2

7 4 8 9 9 3 1

1 2 5 3 8 6 9 7

8 7 9 4 8 9

3 7 1 8 9 2 4

2 6 1

8 5 4 9 7 6 3

3 7 9 9 4 3

1 4 3 2 3 7 2 1

6 4 1 9 8 5 7

9 1 5 2 3 1

The nine-letter word wasRECAPTURE

T E R R E S T R I A L

S A T E L L I T E & C A B L E

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5

TUESDAY 3 JULY 2012

IMAGINEBBC1, 10.35PMPaul Simonrecalls themakingof his1986album Graceland, returningtoSouth Africa to reunite withmusicianswhoplayedon the record.

TODAY ATWIMBLEDONBBC2, 8PMJohnInverdale introduces highlightsfromthe womens singles quarter-finalson day eight,andlooksahead totomorrows mens matches..

GORDON BEHIND BARSCHANNEL4, 9PMAn inmate Gordon Ramsay believescouldpotentiallybecomea chef continually getsinto trouble withprison officers.

TV PICK

7/31/2019 Cityam 2012-07-03

22/24

FORMER Chelsea manager Andre Villas-Boas is today expected to beannounced as Tottenhams newmanager as the search to replacethe sacked Harry Redknappreaches its conclusion.

Tottenhams failure to securequalification for the ChampionsLeague was the overwhelmingfactor in Redknapps departurefrom White Hart Lane and Villas-Boas who is expected to sign athree-year contract now remainsthe outstanding candidate to behis successor, despite his failure toimpress at Chelsea.

Villas-Boas was last seasonsacked after less than a year incharge at Stamford Bridge and hisreplacement, Roberto di Matteo,thereafter inspired them to winthe FA Cup and ChampionsLeague. He regardless continues to

be considered one of Europeanfootballs brightest talents,however, and was also consideredfor the vacant Liverpool job beforeBrendan Rodgers was eventually lured from Swansea City.

One of Villas-Boass immediatetasks at Spurs will entail arestructuring of their playingpersonnel. As well as Emmanuel

Adebayors departure, the futuresof the influential Ledley King andLuka Modric remain uncertain.

Villas-Boas set

for three-yeardeal at Spurs

BRITISH No1 Andy Murray will today resume his efforts to advance to thequarter-finals of Wimbledon afterrainfall yesterday halted the momen-

tum built throughout his fourth-round match against Marin Cilic.Intermittent drizzle transformed

into consistent rainfall during acontest in which Murray had takencontrol, a promising turn after early exchanges had resulted in regularclutching of the troublesome back that had marred his performance atlast months French Open.

Murray presently holds a 7-5, 3-1lead and any frustration felt at the

break in play that coincided with achance to close in on the second set

will no doubt be compounded by theloss of a potential days rest in his bidto reach the final at the All EnglandClub for the first time in his career.

Given the early eliminations of rivals Rafael Nadal, the world No2,and Andy Roddick, a previous

Wimbledon finalist, Murrayschances of reaching that first final and potentially even winning hisfirst ever grand slam are as kind asthey have ever been, though Britishtennis fans will have been remindedof the cruel intervention of rain

when Tim Henman appeared on the brink of the 2001 final during hissemi-final against Goran Ivanisevic.

Henman had been leading theCroatian by two sets to one when play stopped, contributing to his loss of momentum and eventual defeat, andhe never again became as close toachieving that particular feat.

Six-time champion Roger Federerensured Murray was not alone in

being undermined by both the weather and back problems, however. The Swiss received treatment for dis-comfort in his back during the firstset, and also experienced a 40-minute

break in play because of the rain,though he regardless secured a 7-6 (7-1), 6-1, 4-6, 6-3 victory over XavierMalisse to advance to the tourna-ments final eight against 26th seedMikhail Youzhny and dismissed any

IN BRIEFKlitschko set for final fightn BOXING: WBC heavyweightchampion Vitali Klitschko will fightGermanys Manuel Charr in Moscow on8 September, and may retire afterwardsto pursue a career within politics. I willmake a decision after the election, hesaid. Charr is young, hungry andundefeated. He is afraid of nobody,always marching forward.

Lavezzi latest to join PSGn FOOTBALL: Argentinian internationalforward Ezequiel Lavezzi has agreed afour-year contract to leave Napoli andsign for Paris St Germain. There is agreat project here, the opportunity towin titles and I want to contribute tothat, said Lavezzi. This club will be

even more important in the future.

Fabio jumps through Hoops at lon FOOTBALL: QPR have signedManchester United left-back Fabio daSilva on a season-long loan. Im sohappy to be her