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MANCHESTER United is set to becomea publicly traded company tomorrowafter investors filled the order book forits shares, despite warnings from ana-lysts that the stock is overpriced.

City A.M. understands that there hasbeen sufficient demand for the club topush ahead with its listing on the NewYork Stock Exchange, which will see itissue 16.7m shares priced at between$16 and $20 raising up to $330m(210m).

It will be third time lucky for theclub, after the owners, the Glazer fam-ily, abandoned earlier attempts tofloat in Singapore and Hong Kong.

But analyst Ken Perkins at Chicago-based Morningstar told City A.M. theproposed share price is aggressive, ifnot excessive and said a fairer value

FTSE 100L5,845.92 +4.68 DOWL13,175.64 +7.04 NASDAQ 3,011.25 -4.61 /$ 1.56 unc / 1.26 unc /$ 1.24 unc

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BY JAMES WATERSON

DAVID HELLIER: Page 2LL

MORE: FORUM: Page 13LL

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ISSUE 1,692THURSDAY 9 AUGUST 2012

was around $10.From an investment perspective itjust doesnt seem attractive. Theyrenot going to pay dividends and theGlazers are going to retain control. Asan investor I dont know what youregetting other than the hope the clubis going to get bought by someoneelse.An $18 f loat price would give the

company a steep predicted price-to-earnings ratio of over 110, comparedto 14.4 for entertainment giant Disney.The high price has led to industry

speculation that many investors areindividuals who have more interest inthe bragging rights that come fromowning a stake in one of the worldsmost famous football clubs than theyare in achieving a good return ontheir investment.

David Gill, Manchester Uniteds chief

executive, was yesterday in London tohelp drum up additional support atan investor roadshow hosted by leadadviser Jefferies.

Supporters groups have been vocalin their opposition to the float, com-plaining that the proceeds will not bespent on improving the clubs playingsquad but instead will be used toreduce the 420m debt pile thatManchester United has carried sincethe Glazers leveraged takeover in2005. If all goes to plan the family willalso enjoy a pay day of around $140m.

Institutional investors have repeat-edly complained about the proposedshare structure, which will leave thecurrent owners with 99 per cent ofvoting rights.

How Manchester Uniteds figures compareMan United Disney CBS

P/E 2013

110.3

P/E 2013

14.4

P/E 2013

12.4$89.2bn

Marketcap

Profit 2011$8bn

Marketcap

Profit 2011$2.5bn

Profit 2011$18.9m

DAY OF NEAR MISSES FOR TEAMGB BUT BOXER NICOLA ADAMSBATTLES THROUGH TO FINAL

VISITORS STEAL THE SHOW

All the actionfrom yesterdays

Olympics:Pages 8, 13, 19, 20

MAN UTD KICKS OFF IPOWITH SKY-HIGH RATING

* P/E = price-to-earnings ratio, the cost of a share compared to the firms income per share.

Marketcap

$2.95bn

$23bn

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IN BRIEFGreeks bid forCredit Agricole unitn Two of Greeces largest banks

yesterday joined a race to buy CreditAgricoles struggling Greek subsidiaryEmporiki, put up for sale to limit theFrench lenders exposure to crisis-hitGreece. National Bank and Eurobanksaid in separate bourse filings theysubmitted offers for Emporiki, whichlost 1.62bn (0.9bn) in 2011. AlphaBank has already said it has made anoffer. But Credit Agricole will have torecapitalise Emporiki if it wants tooffload the bank. Greeces banksupport fund, the Hellenic FinancialStability Fund (HFSF), has toldEmporikis potential buyers that it willapprove a sale only if the unit isrecapitalised and fully funded beforeit is sold.

Morgan Stanley eyes job cutsn Morgan Stanley, under fire to boost

profit margins in its retail brokeragearm, is considering closing brokerageoffices, laying off support staff andrequiring some branch managers alsoto generate revenue as advisers undera cost-cutting drive, according toreports. Morgan Stanley, whichcontrols the Morgan Stanley SmithBarney venture owned jointly withCitigroup, last week reduced thenumber of regions to 12 from 16,eliminating four manager jobs.Among the changes under discussion,they said, is a 10 per cent cut in theventures 120 branch complexes,which are groups of branch offices in acity or region that share complianceand administrative staff. MorganStanley spokeswoman Christine Jockledeclined to comment.

THE US regulatory body at the centreof allegations against StandardChartered yesterday came out fight-ing against criticism that it had actedwithout consulting its fellow watch-dogs, and denied that the case wasproof of an anti-UK bias.

One of the New Yorks state finan-cial services departments senior offi-cials told City A.M.yesterday that thenewly formed regulator didnt dothings the standard old boy way andsaid it was not involved in pursuingan anti-London agenda.

He spoke out after widespread criti-cism from British MPs and policy-makers that claims against the bankwere part of a campaign to under-mine a rival financial centre.The department of financial servic-

es (DFS), run by Benjamin Lowsky,stunned the City on Monday after itlaunched an explosive assault onStandard Chartered over $250bn inalleged money laundering transac-tions tied to Iran.The order issued by the department

scuppered long-running negotiationsthat were already taking placebetween the bank and various USregulators including the Treasuryand the Fed to settle the claims overthe transactions.

Stanchart chief executive Peter Sands apologised yesterday for mistakes made.

2 NEWS To contact the newsdesk email [email protected]

WAY back in the 1990s, a hostof football clubs decided tobecome public companies,listing their shares on the

London stock market.They were led by Manchester United,

which floated in 1991, and were fol-lowed by the likes of Aston Villa,

Sunderland, Chelsea and evenCharlton and Birmingham.Backers tried to convince investors

they were some sort of early dot.complay, like Leeds United, which was runfor a while by the wily entrepreneurChris Akers before being taken over bythe famously over-ambitious PeterRidsdale. They all sold the vision toinvestors of ever increasing revenueson the back of the digital revolution.

Others, like Chelsea, presented astrategy (which now looks distinctlyflawed) of selling investors the idea ofa football business that was combined

EDITORSLETTER

DAVID HELLIER

Manchester United heads to the stock market (again)

THURSDAY 9 AUGUST 2012

with general leisure activities such ashotels and a travel business. Why afootball owner like Ken Bates everthought he would run these disparatebusinesses with any sort of beneficialsynergies is anybodys guess, buthindsight is a wonderful thing.

For a while the experiment seemedto be working and was all the rage,but in time it became apparent that,whilst football-related revenues inmost cases did keep rising, they did soinsufficiently quickly to keep up with

ever rising costs, mainly in the formof player wages.When the dot com bubble burst,

football club share prices collapsed,and most of the listed companieswere taken over.

Tomorrow, Manchester United willbecome a publicly listed company

again, but this time in New Yorkrather than London after a similarattempt to float in Singapore wasabandoned.

Surprisingly, despite almost univer-sally negative publicity, the flotation,which hopes to raise 212m, appearsto be meeting targets, with enoughdemand being registered for theshares within the price range of $16-20. The broker Morningstar values theshares at a more conservative $10 ashare.

Says Owen Wild of the respectedfinancial publication IFR:

plain that it will lead to little invest-ment in the team or its stadium or inthe holding down of rising ticketprices. The Glazers ownership of theclub appears to have weakened it inthe eyes of fans.What the likely success of this IPO

will demonstrate though, is that

New York and an adviser such asJefferies can succeed in floating UKhousehold names in a way thatLondon currently can not.

Recently the vacuum technologygroup Edwards IPOd in New Yorkafter failing dismally to do so inLondon last year.

More will follow these groups, saysWild. There must be a lesson here forLondon somewhere.

Manchester United is a unique asset.The power of the Manchester Unitedbrand is like no other and it is hardfor anyone else to replicate.

During the marketing sessions therehave been all sorts of argumentsabout how to assess the brand, withfans groups pouring scorn on the

banking advisers claims that Unitedhas 659m followers.That United does have an incredible

awareness globally and an army ofzealots that might be prepared to fol-low its fortunes on web-sites and iPadsand Blackberrys, is not to be doubtedhowever. The clubs recent $559msponsorship agreeemment withChevrolet 128 per cent up on its cur-rent deal underlines the potential ofthe clubs revenue growth.

But this flotation is partly about theGlazer familys desire to monetisesome of its investment, and fans com-

The officials comments came asStandard Chartered chief executivePeter Sands spoke out for the first timesince the allegations by the DFS hadbeen made.

We didnt anticipate this happeningat all, he told City A.M. It was quite sur-prising because we had been engagedin a process with five different US regu-

latory agencies, a process we initiatedand we didnt have any reason tobelieve that one of the agencies wouldact in this way.

He admitted that some transactionsdid break US sanctions but theseamounted to only 300 transactionsworth $14m and were all administra-tive or understandable mistakes.

Standard Chartered PLC

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[email protected] me on twitter: @hellierd

We are sorry those mistakesoccurred but they are in the context of150m transactions and there were nopayments identified that involved indi-vidually sanctioned entities by the USgovernment at that time.

Sands also confirmed that StandardChartereds executive director of riskmentioned in the report was RichardMeddings, now finance director, butdenied that he had described US regu-lators as f****** Americans.

As far as we can tell and none of thepeople at that meeting recall makingthat statement so we do not believethat that quote is correct, he said.

Shares in Standard Charteredrebounded seven per cent yesterday,but are still down 18 per cent since thescandal broke. Sands conceded: wehave paid a price already in terms ofreputational damage.

Bank of England governor MervynKing dismissed claims yesterday thatUS regulators were engaging in a waragainst UK banks but said that UKauthorities would ask that US regulato-ry bodies work together and refrainfrom making too many public state-ments until the investigation has beencompleted.

Standard Chartered is believed to beconsidering legal action for reputation-al damage against the DFS, which onMonday accused the 160-year old bankof operating as a rogue institution.

American regulator denies claimthat it has an anti-British stance

BY KASMIRA JEFFORD

Square ties-up deal with StarbucksSquare, the mobile payments start-upcreated by Twitter co-founder Jack Dorsey,yesterday took a big step towards themainstream when Starbucks announced itwould use its smartphone technology toreplace transaction systems in its UScoffee shops. Under the deal, Square willprocess all Starbucks transactions donewith credit and debit cards.

Avatar creator backs China 3D TVJames Cameron, creator of theblockbuster film Avatar, is betting that

China is the place to jump-start 3Dtelevision. Cameron Pace Group, the 3Dtechnology company co-founded by MrCameron, yesterday announced a jointventure with two Chinese state-backedcompanies to produce the advancedcamera equipment needed for 3D filming.

Foreigners to dominate UK propertyForeign institutional investors are oncourse to become the dominant force inthe UK commercial-property market,having pulled level with domestic pensionand insurance funds for the first time.Overseas financial institutions own 23 percent of the UKs 717bn property market.

Cycle success inspires surge in salesCycling firms have reported a surge indemand since recent British triumphs.Visa Europe reported that bike-relatedsales were 15.8 per cent higher last week,while Evans Cycles reported a 35 per centincrease in the sale of road bikes.

Cashmere firm crushed by pensionsShares in Dawson International, one ofthe UKs last cashmere manufacturers,were suspended yesterday after the firmsaid it was unlikely to be able to meet itspension liabilities.

Half of Brits not planning pensionAlmost half of all Britons are not planningto use a pension to fund their retirement,relying instead on savings, inheritance ormoney from their property to see themthrough, according to research fromBaring Asset Management.

Royal Wedding carpet firm in pay rowVictoria, the company that made the redcarpet for last years Royal Wedding hasbecome embroiled in a pay row after itsnon-executive directors allegedlydemanded a bonus if the company was sold.

Ex-UBS Traders offered dealUS prosecutors have agreed to shieldseveral former UBS employees fromcriminal charges in return for cooperationwith the escalating investigation ofsuspected interest-rate manipulation,according to a person close to the probe.

New checks on Rolls-Royce enginesEuropean air-safety regulators haveordered another round of inspections ofRolls-Royce PLC engines on dozens ofAirbus A380 aircraft, similar to the checksthat followed a 2010 engine blowout.

The new jobs website for London professionalsCITYAMCAREERS.com

WHAT THE OTHER PAPERS SAY THIS MORNING

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RUPERT Murdochs News Corp lastnight posted a fourth-quarter loss of$1.55bn (990m) after taking a majorhit on the value of its publishing busi-ness and setting aside a further $57mto cover the cost of the ongoingphone hacking scandal in the UK.Total revenue for the three months

to 30 June fell to $8.4bn, down 6.7per cent on the same period last year.Year-end net income was $1.2bn,

down from $2.7bn in 2011.Not only did we execute on our

operating plan and deliver on ourfinancial targets, we returned over$5bn to shareholders through anaggressive buyback program and div-idends, Murdoch said.

Our company has continued toinnovate, grow and consistentlyadapt to the rapidly changing mediaindustry landscape.

News Corp is in a state of transi-tion, with income from its TV opera-tions failing to off-set the turmoil inits traditional publishing business.

Ongoing restructuring led to awritedown of $1.5bn of goodwill and

News Corp hit

by writedownon publishingBY JAMES WATERSON a further $1.3bn of intangibles in this

quarters accounts, mainly relating tothe Australian newspaper business.

At its US cable business, operatingprofit rose 26 per cent to $792m, asNews Corp cranked up the affiliatefees it charges from cable, phone andsatellite TV distributors.

Income from the companys filmproduction division was substantiallydown from $210m to $120m due tothe absence of major releases in thelast quarter.

Investors were disappointed withthe results and pushed the f irmsClass A shares down 3.5 per cent inafter-hours trading on the NASDAQ.

Hung jury in iSoft fraud caseleaves FSA to consider positionTHREE former directors ofhealthcare IT firm iSoft face an

uncertain future after a juryyesterday failed to reach a verdictin their fraud trial for allegedlyoverstating the firms results.

The Financial Services Authority(FSA) now has a month to decidewhether to continue with the case.Jurors sat through four weeks ofevidence at Southwark CrownCourt but could not come to aconclusion after deliberating for afurther fortnight.

BY JAMES WATERSONA further hearing has been

scheduled for 7 September 2012and the FSA will consider itsposition for a retrial, the regulator

said in a short statement.The FSA began its investigationinto Stephen Graham, TimothyWhiston and John Whelan in 2006following accusations ofquestionable accounting practicesat the firm, which had a centralrole in the botched 6.2bn projectto provide a unified IT system forthe UKs National Health Service.

The central allegation is that thefirm counted revenue from a

54.3m (42.8m) software contractwith the Irish health service asearly as November 2003, eventhough the deal was not confirmed

until 2005.Patrick Cryne, the former iSoftchairman and owner of Barnsleyfootball club, will be triedseparately later this year on thesame charges.

Two years ago Ian Storey, iSoftsformer financial controller,admitted giving false informationto auditors between 2003 and 2005and was banned from working asan accountant for eight years.Rupert Murdoch says his firm is in the middle of great change.

News Corp


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PRIVATE equity firm CarlyleGroup reported a nearly two percent drop in assets undermanagement yesterday, as itrevealed a second quarter loss.

Total assets have declined $3bn(1.91bn) since March to $156bn,although rival private equity

groups have suffered largerdeclines in assets.

The group, one of the largestprivate equity fund managers inthe world, also saw an economicnet loss of $57m from a profit of$392m last quarter and $237m a

year ago.While the short-term outlook is

cloudy, I would argue that we havehistorically made some of our best

Carlyle Group upbeat despite$3bn quarterly asset value drop

BY MICHAEL BOWinvestments during times likethese, Carlyles co-chief executive

William Conway said. Greatinvestments can be made in a badeconomy and lousy investmentscan be made in a vibranteconomy.

The group revealed it had raised$3.9bn from investors in the secondquarter -- the most since 2008 -- tak-ing the total raised this year to$6bn.

Co-chief executive DavidRubenstein, who helped set up thefirm, said: The nearly $4bn in newcapital we raised this quarterreflects the expected pick-up infundraising as our sixth US buyout

fund began to close on new com-mitments.

THURSDAY 9 AUGUST 20123NEWScityam.com

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IN BRIEF

GERMANYS exports fell in June,

official statistics showed yesterday,though imports fell even faster,expanding the trade deficit.Industrial output also slid 0.9 percent, after rising 1.9 per cent in May.

The patchy data didnt deterratings agency Fitch from affirmingits AAA rating with a stable outlook.

And one of the founding fathers ofthe euro, former European CentralBank chief economist Otmar Issing,said Germany will fare better if itremains in the single currency though he conceded other Eurozonemembers could pull out.

Across the border, the Banque deFrance warned that France couldsuffer a shallow recession, withoutput likely to contract in the thirdquarter after falling 0.1 per cent inthe first three months. The countrystrade deficit widened from 5.5(4.3bn) to 6.0bn in June.

Spain also endured a raft oftroubling statistics, with itsindustrial output tanking 6.3 percent in May its tenth straightmonth of decline.

Germany andFrance enduregloomy stats

BY MARION DAKERS

THE BANK of England slashed itsgrowth forecasts yesterday, as its gov-ernor Sir Mervyn King warned thatthe UK economy still faces a tempes-tuous time ahead.

We are navigating rough waters,and storm clouds continue to roll infrom the euro area, King said, afterthe Banks latest Inflation Reportshowed that economic growth willbe flat in 2012.

The previous report, released inMay, predicted around one per centgrowth this year. That documentalso showed growth reaching around1.8 per cent going into 2013, while

yesterdays report halved that rate toapproximately 0.9 per cent.And King added that the Banks

forecasts were unable to account forpotentially severe knocks that could

King warns ofstorms ahead

as forecasts cutBY JULIAN HARRIS

occur, most likely from the Eurozonecrisis. A black cloud of uncertainty ishanging over investment, he said,adding that a strengthening pounddecreases the competitiveness ofBritish exports.

On top of uncertainty from over-seas, deputy governor Charlie Beansaid that the Bank is perplexed atseemingly contradictory rise inemployment while output is falling a circumstance that suggests anunprecedented dive in productivity.We are in a genuine economic puz-zle that we dont really understand,Bean admitted.The Banks projections also showed

inflation nearing two per cent by the

end of the year, while Mays reportforecast the consumer price index tosteady at approximately 2.6 per centat the same stage.

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TECH giant Hewlett-Packard(HP) yesterday increased itsthird quarter earnings forecastdespite an $8bn (5.1bn)

writedown on the value of itsservices business.

The staggering writedown,attributed by HP to marketconditions coupled with recenttrading values of its stock,provided fuel for analysts whoaccused HP of overpaying for its$13bn acquisition of EDS in2008.

The division, the companyssecond biggest revenue driver

behind computers, hasstruggled since then ascompetition during therecession has seen the value ofcontracts plunge. Its sales

HP forced to write off $8bnon struggling services arm

BY KATIE HOPE growth was flat for the firsthalf of the year at $17.5bn.

However, HPs decision toboost its third quarter earningsguidance to $1 a share from itsprevious guidance of $0.94 to$0.97 seemed to appeaseinvestors. The shares rose 2.4per cent to $19.41 yesterday, butremain almost 60 per cent lowerthan their price at the time ofthe EDS acquisition.

HP, which revealed a majorrestructure in May involving27,000 job cuts, also raised thepre-tax charge it expects for thequarter to between $1.5bn and$1.7bn from $1bn. It said this

was due to a higher thanexpected rate of acceptance forits early retirement and

workforce reductionprogrammes.

SKY could be free to charge its rivalshigher prices for its sports channelsafter winning a competition appealagainst Ofcom yesterday.

The competition appeals tribunalfound the regulators concerns overSkys dominance to beunfounded, paving the way forrules to be lifted on the amountVirgin Media and BT pay for SkySports 1 and 2 .

Ofcom said it was surprised anddisappointed at the judgment,which comes two years after theregulators demands.

A full ruling is due in comingmonths, and is likely to be appealedregardless of the decision. VirginMedia vowed to pursue all availableoptions.

Sky appeal onsports upheld

BY JAMES TITCOMB

MCDONALDS yesterday reported f latsales in July at establishedrestaurants around the world, itsworst performance in more thannine years and a sign that aweakening global economy is hittingdiscretionary spending amongmainstream diners.

The results marked the first timesince April 2003 that same-restaurant sales failed to rise. Justtwo weeks ago, McDonaldspredicted an increase in July same-restaurant sales, albeit by less thanthe 3.7 per cent gain reported in thesecond quarter. The f lat resultsuggested that sales significantlydecelerated in the days afterMcDonalds issued guidance on 23July. US sales slipped by 0.1 per cent

last month, while Europeanrevenues dropped by 0.6 percent.

Sales flatteningat McDonalds

BY CITY A.M. REPORTER

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CITYAMCAREERS

.com

August 2012 GDP estimate

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...BUT AT LEAST INFLATION IS STARTING TO EASE

May 2012 GDP estimate

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Inflation has stuck above three per cent for 36 of the last 54 months, consistentlyembarrassing the Banks two per cent target. However, the Bank now says external pricepressures have passed, and that inflation should return to target by the end of the year.

The Bank of England slashed its near term growth forecasts, and also said that in themedium run growth is set to remain below its trend rate. The UK economy is slowlyhealing, Sir Mervyn King said, adding that sharp risks still remain.

GROWTH WILL BE EVEN LOWER THAN EXPECTED...

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IN WHAT has become a torrid fort-night for mining companies, RioTinto yesterday unveiled a 34 percent slump in first half profits to$5.5bln (3.3bn).

However declining global demandfor natural resources hit Rio less dra-matically than its peers: Xstrata,Anglo-American and BHP have allrevealed sharp falls in underlyingearnings over the past two weeks.

In fact, Rios results exceeded ana-lysts expectations, and the sharesfinished nearly three per cent higheryesterday, one of the best perform-ances in the FT-SE 100 index.Record first-half revenues from Rios

Australian Pilbara iron ore minesfailed to counter slowing shipmentsto China. But, unlike his counterpartat Xstrata, Rio chief executive TomAlbanese believes that Chinesedemand is on the rise.We expect to see signs of improve-

ments in Chinese activity by the endof the year ... as government stimulusmeasures begin to flow to infrastruc-ture investment, he said. Rio expectsChinese GDP to expand by eight per

Rio Tinto bets

on expansionas profits dropBY MICHAEL BOW

cent this year, exceeding the Chinesegovernments own expectations.

Despite a rising cost base -- net debtjumped by 55 per cent over the firstsix months of the year to $13.2bn --Albanese has no plans to shave his$16bn capital expenditure budget for2012, attributing the strong perform-ance of the Pilbara mines to invest-ment-generated efficiency.

From autonomous trucks andtrains to faster underground tun-nelling and advanced mineral recov-ery, all these initiatives are aimed atreducing costs and improving pro-ductivity, Albanese said.The interim dividend rose by 34 percent to $0.725 a share.

Government claims businesseshelped it save 5.5bn last yearBIG names from the business worldassisted the government in finding

over 5.5bn in efficiency savingsduring the last f iscal year, CabinetOffice minister Francis Mauderevealed this morning.

The coalition claims it has cut9.25bn from the last two years ofcentral government budgets, andhit out at Labour leader Ed Milibandfor failing to rein in spending whilehe was in government.

Theres no reason why Miliband,when he was sitting in my chair,

BY JULIAN HARRIS couldnt have done this but hedidnt. It depends on there being aminister who cares about it, Maudesaid. Labour retaliated: For all their

talk of savings, this Tory-ledgovernments failures are costingthis country dear, said shadowCabinet Office minister Jon Trickett.

Miliband spent 13 months at theCabinet Office during the previousLabour administrations term.

Announcing the efficiencysavings, Maude paid homage tobusiness leaders who are helpingthe government along the way.

We have a lot of useful input

from very senior business people onthe Efficiency and Reform Board, hesaid, naming Sir Philip Green, LordBrowne, Sir Peter Gershon, Martin

Read, Dame Lucy Neville-Rolfe andMartha Lane Fox.Green found some departments

were spending seven times as muchas others on printer cartridges,Maude cited as one example. Greenalso advised Whitehall on leveragingits size and quality of credit to securebetter purchasing contracts.

Bulk-buying, along with cuttingconsultancy, marketing andproperty spend, drove the savings.

Rio Tinto PLC


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The shares have been weak and volatile performers this year, driven bynear-term risks surrounding the outlook for global growth and higher industrycosts. However, we are positive on the stock, and believe it is a highlyliquid way to gain exposure to long-term emerging market growth.

ANALYST VIEWS

Underlying earnings of $5.2bn is a small beat on consensus at $5.04bn,down 34 per cent on lower prices. Outlook in line with rest of other players withlower prices but continued strong earnings and cashflows. Order booksremain full and Chinese GDP is expected to be 8 per cent in 2012.

Iron ore weaker than expected, underlying earnings $4.7bn and differ-

ence at the revenue line is likely weaker than anticipated iron ore realisations.

Given our expectation of strength in iron ore from Q4 when the Chinesestimulus plans we remain buyers.

HOW DID RIO TINTO DOAGAINST ANALYSTS

EXPECTATIONS?By Michael BowJONATHAN JACKSON KILLIK & CO

CAILEY BARKER NUMIS

RICHARD KNIGHTS LIBERUM CAPITAL

THURSDAY 9 AUGUST 20126 NEWS cityam.com

Technology guru Martha Lane Fox Retail chief Dame Lucy Neville-Rolfe

Business tycoon Sir Phil ip Green Former BP chief executive Lord Browne

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FRANCE has not exactly covered itselfin glory in its somewhat peevish reac-tion to Great Britains utter domina-tion of track cycling at London2012 and it seems they justwont let it go.

First came suggestionsfrom crestfallen Frenchcycling chiefs that thesuccess of Sir Chris

Hoy and Co could bedown to magicwheels which weresuspiciously hiddenaway after races.

Undeterred bythe mockery thatprovoked on this side ofthe Channel, respectedFrench sports

newspaper LEquipe yesterday askedreaders whether Team GBs heroicswere tainted. Of the tens ofthousands who responded, some 70

per cent responded oui.Particularly galling was Jason

Kennys victory over Gregory Baugein the mens sprint final. Bauge

bettered Kenny earlier this year toregain his world title but

found himself trailing inLondon. Clearly cheesedoff, Bauge raised eyebrowsin the post-race mediaconference when heinterrogated Kennyabout the reasonsbehind Team GBsdominance.Whatever happened to

the Gallic shrug andtheir famed air of indif-ference?

Got A Story? Email

[email protected]

8cityam.com

cityam.com/the-capitalistTHECAPITALISTTHURSDAY 9 AUGUST 2012

ATLONDON2012

LONDON 2012 IMAGE OF THE DAY

SARAH Attar of Saudi Arabia became onlythe second woman from the country to evercompete at an Olympic Games yesterday,after running in the first round of theWomen's 800m heats.

Throughout the Olympics, City A.M. will bepublishing its Olympic Image of the Day. Ifyou have a shot you think our readers willlike, please email [email protected]

French use sourgrapes for GBwhine-making

CAN THE OLYMPICS LEAVE ALASTING LEGACY?

It depends on how well the site is inte-grated and the transport links are

maintained. If we continue to fund our sports wellthen further success is guaranteed in the future.

These views are those of the individuals above andnot necessarily those of their company

GREG MURRAYLLOYDS

CITYVIEWS

Interviews by Alex Woodall

London has the size and dynamismof population to ensure that the sta-

dium is used in future. I think the Olympics willspur on sport in the UK.

ANDREAS LIESCHETRINOVA REAL ESTATE

I think that much of the Olympicbuzz will fade after the Games. But

the Olympic park complex is simply too goodto go to waste and will find a good use.

MALCOLM BIRDRR DONNELLY

Jason Kennys victoryupset the French

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HEALTHCARE provider Bupa yester-

day said a lack of competition amongUK private hospitals had contributedto a 22 per cent fall in profits in itsEuropean and US businesses.Posting a 35m profit for its UK,

Spanish and US operations, downfrom 45m last year, Bupa said thislack of competition was pushing upthe cost of treatment and threaten-ing to make its health insuranceunaffordable, forcing customersaway.

The firms UK customer numbersfell five per cent to 2.7m in the firstsix months, it reported.

Chief executive Stuart Fletcher,who took over in March, said:There are some consultantscharging a good deal more thanothers, but who display no betterquality of health outcomes for thecustomer.

There was good news away from

the West where 63 per cent ofBupas turnover is generated withinternational profits up ten percent. Globally, underlying pre-taxprofit was up five per cent.

Bupa hurt byrising cost ofUK healthcare

BY MICHAEL BOW

INSURER Old Mutual saw its shareprice hit a three-month highyesterday after revealing a 12 percent rise in profits and plans toexpand into sub-Saharan Africa.

Chief executive Julian Roberts saidthat the firm would boost its footprintin East and West Africa to combat,sustained low growth.

The firm, based in South Africa,posted a pre-tax operating profit of791m for the first six months of theyear beating analysts expectationsof 776m.

This was despite a fall in assets

managed by its Old Mutual AssetManagement division to 260.7bn,down two per cent from 264.7bn ayear earlier.

The firm also increased its interim

Old Mutual coyover plans for

Nedbank saleBY MICHAEL BOW

dividend 17 per cent to 1.75p.Its star performer was its majority

owned South African banking armNedbank it posted a 27 per centjump in profits. Roberts declined tocomment on whether Old Mutualstill intended to sell Nedbank.

Old Mutuals planned sale of its 52per cent holding in Nedbank toHSBC fell through in 2010.

Old Mutual PLC


160

162

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168

170

172 p 169.408 Aug BAILED-OUT banking and

insurance group ING yesterdayposted a 22 per cent fall inquarterly net profit to 1.17bn(923m) yesterday, missing

forecasts as the cost ofrestructuring and the Eurozonefinancial crisis took their toll.

The Dutch firm has cut itsexposure to Spanish debt from

Eurozone debt damages profitat bailed-out bancassurer ING

BY MARION DAKERS 41.4bn to 34.9bn since the startof the year, and yesterday booked aloss of 178m to account for its de-risking efforts.

As part of its plan to overhaulthe business following a 10bn

bailout in 2008, ING said it is

hoping for a quick sale of its $7bnAsian insurance arm and isplotting IPOs for its European andUS insurance units. Shares in thefirm closed down 1.3%.

FANNIE Mae yesterday reported aquarterly profit due in part tostronger home prices and said themortgage financier did not needadditional taxpayer funds to staysolvent, the second consecutivequarter the company did notrequest help since it was seized byfederal authorities during the

Fannie Mae makes $5.2bn profitBY CITY A.M. REPORTER

financial crisis.Fannie Mae said net income for

the second-quarter ending in Junewas $5.1bn (3.32bn). In the firstquarter, the company said it earned$2.7bn. The higher income allowedFannie Mae to make a $2.9bndividend repayment to the USTreasury. So far, the company hasdrawn $116.1bn in taxpayer moneyand has repaid $25.6bn.

Chief executive Jan Hommen said the results were solid amid economic uncertainty


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cityam.com/forum

LIFE&STYLE

TECHNOLOGY

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ZOE STRIMPELreviews thebest travel apps

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IN BRIEFBP sells fuel arm for 40.5mn Support services group DCC paid40.5m in cash for BPs liquefiedpetroleum gas (LPG) distribution arm,which supplies fuel to industrial,commercial and domestic customers.BP will retain its automotive LPGbusiness, which operates the groupspetrol stations.

Sportingbet on track for profitn Sportingbets full-year profits, due inOctober, will meet expectations despitechallenging economic conditions inEurope, the bookie said yesterday.Sportingbet, which also runs asuccessful operation in Australia,reported a slump in profits in the firstquarter, following a temporary closureof the Spanish gambling market.

Severn Trent puts unit on the blocknWater company Severn Trent yester-day put its Analytical Services businessup for sale to address competition con-cerns. The unit, which provides watertesting and landfill monitoring, accountsfor around 1.5 per cent of group rev-enues, according to Severn Trent. Utilitiesregulator Ofwat yesterday opened a con-sultation into the sale proposal.

IAG hedges its Amadeus staken BA parent IAG yesterday locked in thevalue of Amadeus, by hedging its entire7.5 per cent stake in the high-flying air-line booking system. Ma drid-listedAmadeus shares have risen by more than30 percent over the past year, whileSpains Ibex index slid by 15 per cent.The deal valued the shares at 492m.

GETTY

BRITISH defence technology groupCobham said US budget disputesand the impending presidential elec-tion have hit order books, as thecompany cut its earnings forecast.

Shares fell six per cent on the news,as Cobham reported a five per centdrop in revenue to 892m and a 10per cent fall in profits to 90m in thefirst half of the year.The company aims to boost its com-

mercial aviation business -- whichaccounts for 32 per cent of revenues-- to counter uncertainty over defencespending in both the US and in cash-strapped European countries, saidchief executive Bob Murphy, whojoined from BAE two months ago.

Cobham ordershit by row in US

BY JAMES TITCOMBThe outlook for the US defence and

security market for the end of 2012and 2013 is particularly uncertaindue to the upcoming US electionsand the lack of political consensus onUS government budgets, Murphyadded.

Cobham PLC


225.0

222.5

227.5

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235.0

237.5

240.0 p225.70

8 Aug

CATHAY Pacific Airways yesterdayposted its worst first-half loss since2003, surprising investors with

complaints of weak cargo traffic,high fuel costs and a fall inpremium passengers.

Hong Kong-listed Cathay, whichissued a profit warning in March,reported a net loss of HK$935m(77m) for the six months to theend of June, its weakestperformance since the outbreak ofa viral epidemic in 2003 spooked

Asian flyers.European freight business was

particularly slow in the half,

Cathay Pacific posts worst halfsince 2003 as fuel costs surge

BY MARION DAKERS knocking cargo revenues down 7.6per cent to HK$11.9bn.

In a further blow, the firmreported that fuel costs rose 6.5 percent on a year ago, accounting for

41.6 per cent of total operatingexpenses.

Passenger numbers rose 8.6 percent to 14.3m, but the firm said

yields came under pressure due toa slide in premium traffic.

Shares fell 4.3 per cent yesterday.Chairman Christopher Pratt said:

Aviation will always be a volatileand challenging industry and our

business will always be subject tofactors... which are beyond ourcontrol.

RYANAIR failed to halt acompetition probe into itsminority stake in takeover target

Aer Lingus.The Competition Appeal

Tribunal yesterday threw outRyanairs case, allowing aninvestigation by the CompetitionCommission to continue.

Ryanair loses Aer Lingus appealBY MARION DAKERS Ryanair tried to argue that thebody did not have the power toinvestigate its 30 per cent stake.

Aer Lingus welcomed thedecision, saying in a statement itlooks forward to assisting theCompetition Commission in itsongoing investigation.

Ryanair, which offered to takeover Aer Lingus in June, plans toappeal yesterdays ruling.

THURSDAY 9 AUGUST 201210 NEWS cityam.com

Cathay chairman Christopher Pratt said aviation was a volatile and challenging industry

7/31/2019 Cityam 2012-08-09

11/19


LONDON REPORT

Wall St almostflat as volumesremain down

THE Standard & Poors 500 justbarely extended a streak ofgains to a fourth day yesterday,ending above 1,400 in another

thinly traded session.Expectations for stimulus from the

European Central Bank and the USFederal Reserve triggered the recentgains, but investors found little reasonto keep pushing stocks higher after

driving the market to three-monthhighs.The three major US stock indexes

opened lower but recovered at midday,led by consumer staples and healthcare. Both are defensive plays, an indi-cation that investors are keeping theirenthusiasm in check.

In a sign of that weakening demand,McDonalds fell 1.7 per cent to $87.53after reporting flat same-store sales inJuly, the worst performance for theDow component in more than nineyears. The Bank of England gave littleindication that it would rush to pourin further stimulus even as it sharplycut its forecast for medium-term eco-nomic growth in Britain. Frances cen-tral bank forecast a contraction ingrowth going into the third quarter,citing weak demand from the periph-ery and Britain.The Dow Jones industrial average

rose 7.04 points, or 0.05 per cent, to13,175.64 at the close. The Standard &Poors 500 Index edged up just 0.87 of apoint, or 0.06 per cent, to finish at1,402.22. But the Nasdaq CompositeIndex slipped 4.61 points, or 0.15 per-cent, to end at 3,011.25.

Spanish benchmark 10-year debtyields briefly rose above seven percent, underscoring the cautious tonefrom investors recently disappointedby lack of coordination from Europeanofficials in their efforts to revive thetroubled region.

BRITAINS blue chip share index roseby just a few points yesterday,consolidating around a four-monthpeak as a slide in a batch of stocks

trading without their dividendentitlements offset gains in banking andmining stocks.

Fifteen blue chip stocks traded ex-dividend yesterday includingheavyweights Royal Dutch Shell, BP,

AstraZeneca, GlaxoSmithKline, andBarclays knocking 25.41 points in totaloff the FTSE 100.

Standard Chartered, which was alsotrading ex-dividend, rebounded sevenper cent after losing more than 20 percent over the previous two days afterNew Yorks regulator accused theLondon-based bank of hidingtransactions tied to Iran.

At the close, the UK blue chip indexwas up just 4.68 points, or 0.1 per cent at5,845.92, although that was its highestclosing level since early April.

The index showed little reaction to theBank of Englands sharp cut in itsmedium-term economic growth forecast

for Britain in its latest inflation report.The bank said the factors that havedragged on growth since the financialcrisis may persist longer than firstthought.

Miners were strong performers, led byRio Tinto, which gained 2.9 per centafter its first-half results came in at thebetter end of expectations. Rio saw a 34per cent drop in first-half profit, but saidit

was sticking to its $16bn spendingplans for the year. PeerXstratawas alsohigher, up 1.8 per cent after its well-

FTSE maintains its four-month highdespite hit from ex-dividend stocks

BESTof the BROKERSSerco Group PLC

2 Aug 3 Aug 6 Aug 7 Aug 8 Aug

610605

595

585

590

600

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580

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NATIONAL GRIDLiberum Capital hasupgraded the utility fromhold to buy with araised target price of 730pafter seeing proposals forthe firm until 2021. Itestimates annual totalreturn of nine per centover the next eight years.

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SECURE TRUSTNumis has downgradedSecure Trust Bank fromadd to hold and cutthe target price from1223p to 1167p. The brokersays the shares now offerfair value to investors,rather than being cheapas they were previously.

UtilyxThe energy management

specialist has appointed Jo Butlinas its managing director. She hasan extensive career in the energysector, including senior roles atPowergen, and she most recentlyworked as vice president,operations at SmartestEnergy.

Bahrain MumtalakatThe investment arm of the Kingdom of Bahrain hasappointed Tony Robinson as its new chief financial officer.He joined in April 2011 as investment manager and

coordinator, and previously held management roles at RACInsurance and a Bahraini investment bank.

Charles StanleyThe stock broker has announced the appointments ofMatthew Guy and Joanna Danes as investment managers inits asset management department. They both join fromBarclays Wealth, where they were investment managers.

Pioneer InvestmentsThe investment management firm has expanded itsEuropean equity research team by appointing two researchanalysts. Nick Aslibekian joins from Standard Life as ahealthcare analyst. Virna Valenti becomes a financials

analyst. She was previously a senior credit analyst atPioneer Investments.

Valiant PetroleumStephen Horton and Philip Vingoe have joined the oilexploration company as non-executive directors. Hortonworked at BP for 27 years, and reached the position ofworldwide director of drilling. Vingoe also worked at BP,and was most recently its chief geophysicist.

Jones Lang LaSalleGuy Bransby has been promoted to the role of regionaldirector at real estate services firm. He was previously leaddirector of its planning and development team.

WHOS SWITCHING JOBS Edited by Tom Welsh

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FOUR years after she wasplucked from Juneau, Alaska,in an ill-fated attempt to saveJohn McCains presidentialcampaign, Sarah Palin

continues to confound. Books, TeaParty rallies and appearances on FoxNews have provided her with apowerful soapbox. In this yearsRepublican Senate primaries, justone of the five candidates she hasendorsed has witnessed defeat. Mostvice presidents cant boast of thiskind of rapport with the grassroots.Neither can most Presidents.

As Queen of the Tea Party, Palinhas taken an erstwhile diffuse buthighly-motivated movement of freemarket activists and social

conservatives, and consolidated

OLYMPIC mania seems unableto prevent the coalition fromentering a new crisis phase.The latest nail in the coffinwas the Bank of England

revising down its UK growth forecastfor 2012 to zero, which heaped morepressure on a government alreadybeset by political problems.

The abandonment of House of Lordsreform has angered the Lib Dems. NickClegg has vowed to vote against thechanges to constituency boundaries

considered crucial to the Conservativeswinning a majority in 2015. For thosewho warned of the dangers of coalitiongovernment, this transactional, tit-for-tat approach to policy is unsurprising.But the key point is that it will leavehuge resentment between the two par-ties unless they can agree on a newagenda.

For the Prime Minister, these woeswere compounded by the resignationof Louise Mensch, the Conservative MPfor Corby. Her departure will result in aby-election and an almost inevitableloss of the seat to Labour. This may notseem significant, but Toby Fenwick of

Spread betting, CFDs Trade today atwww.cityindex.co.uk/dailyfact

Canadian housing starts have

doubled since their 2009 low while

unemployment is near a 3-yr low.

FACT OF

THE DAY

cityam.com/forum

The resignation of

Louise Mensch makes acentre-left coalitionmathematically possible

THEFORUM

Twitter: @cityamforum on the web: cityam.com/forum or by email: [email protected]? Disagree? Got a sharp comment?

The Forum wants you to join the debate. Top responses will be reprinted in The Forum.

12THURSDAY 9 AUGUST 2012

RYAN BOURNE

Only radical reform can pull us outof a growing economic quagmire

Fleishman Hillard has pointed out thatit will make a centre-left coalitionmathematically possible for the firsttime. A Labour-Lib Dem coalition, sup-

ported by their Northern Irish spin-offs, Plaid Cymru and the Green party,would not require the support of theScottish National Party or DemocraticUnionist Party. The Lib Dems mightjust have a potential escape route fromthe coalition after all, meaning DavidCameron cant take their continuedsupport for granted.The preservation of the coalition

requires a new, unifying agenda.Rhetorically, at least, all agree that theeconomy is the top priority, and thegovernment plans to use legislativetime, freed up by the abandonment ofLords reform, for a grandly-named

Economic Regeneration Bill.This makes sense. Our economy is 4.5

per cent smaller than its peak at thestart of 2008, and the governmentswatered-down deficit reduction strate-gy is predicated on optimistic growthforecasts. Meanwhile, the two partiesonly hope of electoral success is a sig-nificantly growing economy by 2015.Ronald Reagan once opined that voterswill ask whether they are better offthan at the last election. The answer atthe moment is a resounding no.

What, then, should this bill for theeconomy contain?

So far, public current expenditurehas continued to rise, as capital spend-ing has been slashed and a range oftaxes hiked. You dont need to be aKeynesian to realise that this combina-tion is likely to hurt growth, both inthe short and medium term. The coali-tion should instead scale back on thefunctions of the state, and merge somecurrent government departments toencourage more joined-up thinkingand to save money. Any savings, anddeeper cuts to current expenditure,should be used for targeted tax cuts on

business and increased infrastructureinvestment in projects like new airportcapacity where limited governmentfunds can unlock huge private sectorinvestment.

More important, however, is the needfor dramatic supply-side reform.Planning laws should be liberalised,not just to fast-track new infrastruc-

ture, but to encourage home building.This is desperately needed, and yetplanning laws exclude vast amounts ofgreen belt land and put existing home-owners in a strong position to blocknew development. A scrapping of thesustainable development require-ment should form part of a deregulato-ry component of the bill. This would

also exempt smaller businesses from araft of job-destroying regulations andemployment legislation.

Energy policy should also be re-exam-ined and focused towards growth. Lastweek, a US economist compared theUKs decision to ignore shale gas withdeciding to ignore a cure for cancer. Itsunforgivable that we are neglecting adomestic source of cheap fuel. It alsohighlights a lack of clarity of thoughton energy policy. The governmentwants more gas (largely imported), but

next year is set to make gas moreexpensive by introducing a carbonprice floor. This must be abandoned it will make us uncompetitive, andmerely exports carbon emissions else-where. Cheaper energy is essential to arebalancing away from credit-basedindustries, and the UK is well-placed toexpand advanced, high-tech manufac-turing if these conditions are realised.Will the desire for self-preservation

prove enough for the two parties toundertake the radical economic actionnecessary? We can only hope.Ryan Bourne is head of economic research

at the Centre for Policy Studies.

them into her own Palin-brandedcoalition. Elites despise her, butPalins stump speeches at Tea Partyrallies get activists to trudge to thepolls, donate to candidates, and toilin their campaign offices. The TeaParty movement has seen itsobituary sketched out before but,with Palin, its more organised and

relevant than ever. These are also

the very people Mitt Romney needsto mobilise to vote for him inNovember. But does this mean heneeds Palin?

There is certainly a segment of theelectorate that is attracted to Palin.But her enormous favourabilitydeficit in national polls hasprevented her from taking on amore prominent role in Romneyspresidential campaign. Romneyalready has some Tea Party proxies,but he also understands cost-benefitanalysis. Some Republicans shunPalin rather than endure jabs fromtheir opponents. Palin wont havebeen on Romneys vice presidentialshortlist and shes unlikely to give aspeech at the Republican

convention. Even Palins most

fervent supporters are well aware ofher liabilities. A poll earlier this yearindicated that two thirds of TeaPartiers opposed her running forPresident. They adore Palin. But theycare more about defeating BarackObama.

Palin has not faded intoinsignificance in the presidentialelections solely because of herdivisiveness. Its also because shesnot really needed. One Republicanoperative in a key swing state put itsimply: In a race this tight, stayingat home, or not voting for Romneyon Election Day, gets Obama re-elected. The Tea Party doesnt needPalin to get motivated to defeatObama, even if its reticent about

supporting Romney. Palin might

speak on behalf of the Tea Partymovement. But, in November, theTea Party is already spoken for.

The Tea Partys relationship withRomney is one of common interest.It could only truly break down overthe selection of his running mate, orif it had reason to believe he wouldrenege on his pledge to repealObamas healthcare law. But,whether Romney wins or not, Palinwill emerge in November with ahandful of conservative Republicansenators in Washington with her tothank for their seats. What currentlymatters to the Tea Party, however, iswinning the biggest seat of all.

Ewan Watt is a Washington DC-basedconsultant. You can follow him on Twitter

@ewancwatt

THE WHITEHOUSE RACE

EWAN WATT

Romney can mobilise the Tea Party without Sarah Palins divisive favours

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13

Anti-British bias[Re: Standard Chartered is the victim of USwarfare against British banking, yesterday]John Mann is correct. US regulatorypressure is unfair, excessive, andunbalanced, and solely seeks to protect USself-interests. The UK government shouldprotect British interests unequivocably. Weshouldnt fear the loss of the strategicpartnership, especially if it is used by oneside as a means of arm-twisting the other.

Simon Shaw

The US political trend to blame the Britishpre-dates this current election season. Weshouldnt forget Obamas frequent referencesto British Petroleum, after BPs DeepwaterHorizon crisis in the Gulf of Mexico.

Leo Liebster

Coalition chaos[Re: After Lib Dem-Tory splits onconstitutional reform, will the coalition lastuntil 2015, yesterday]Mark Field is wrong to assume that thecoalitions central economic purpose willhold it together. Any blind man can see thatit wont last its full course. The closer it getsto a new election, the more the Lib Dempanic will set in. Theyll leave in drovestowards the end.

Andrew Jackson

I dont think many people care if thecoalition will last. It has no public support,shocking economic credentials, and its onlyattractive because it stands in the way ofgovernment by Ed Miliband.

Paul Monford

THE countrys heroic athletesmay have grabbed all theheadlines, but they are farfrom the only Britons to haverisen to the challenge of

making the London 2012 Olympicssuch an overwhelming, mood-boosting success.

There is another group of people,which has brought every bit as muchsunshine into the lives of Londoners,and the multitudes visiting for these

two weeks, as Mo Farah or JessicaEnnis or GBs near-invinciblecyclists but without the fanfare.

Except this group doesnt dependon gold medals or world records oreven making a final; they are ontheir game every single day anddont get anything back but a smileor some fleeting bonhomie.They are the Games Makers, the

purple and pink bedecked volunteerswho line the route to our gleamingnew venues, gently, merrily helpingspectators on their way.

I have been to every day of theGames, from Stratford toWimbledon, Greenwich to HydePark, and I havent heard anythingbut effusive praise about a single oneof them. What politicians would dofor that kind of approval rating.Their brilliance lies in their pecu-

liarly amateurish British jollity,which makes them much more thanmere stewards. It would be enough ifthey just performed their primaryfunction, coaxing people in the direc-tion of the Olympic Stadium or theExCel. But they also act as cheerlead-ers, high-fiving and cajoling passers-by with an irresistible enthusiasm.

Whoever encouraged them to be soexpressive is a genius. It might havebeen easier, less problematic, to tellthem just to do their jobs. But, byallowing them personality, they havebecome the living, breathing, laugh-ing face of London 2012. Some even

TOP TWEETSIts up to UK regulators, not US, to show thatthey are determined to learn lessons and cleanup quickly, vigorously and transparently.@TWJGrey

Mervyn King blames the euro and oil prices forweak growth. He doesnt mention consumerssqueezed by inflation and the weak pound.@asentance

Im not sure David Cameron is the kind ofvisionary leader who can outline a neweconomic path for the UK. He tinkers at best.@CintaArsenal

The government says it will put 110 per centinto saving the economy. Thats all you needto know about its business acumen.@PadBrit

As Manchester United nears its share listing,is the club likely to prosper by going public?

YESManchester Uniteds listing raises issues at the heart of football

finance. This listing values United almost 50 per cent greater than the1.5bn it is quoted at elsewhere. But there are three ways it can bejustified. First, the club has potential, especially if it can monetise itsAsian fan base. Secondly, United has a unique brand position. Andthirdly, its competitors can only hope to catch up with its status byspending vast amounts of money. The owners of Chelsea andManchester City have spent billions to do this. Ultimately, the clubwill not pay reasonable dividends to shareholders. Only half the salewill go to paying down debt, leaving United with debts of around350m. Equally, fans are demanding that more is spent on newplayers. But the club has a remarkable ability to confound sceptics,as its latest sponsorship deal with General Motors shows.Tom Cannon is professor of strategic development at the Universityof Liverpool Management School.

Tom Cannon

NODuncan Drasdo

Although public ownership has some key advantages, it isnt the key

question. Who does the owning is. We oppose this IPO, but werenot against the principle wed just like to see a fairer offer, with theinterests of the club, supporters a nd shareholders given equalconsideration. Barcelona and Real Madrid are fan-owned, butperhaps the German clubs have executed the model mostsuccessfully. Their commercial revenues per supporter dwarfs that ofprivately owned clubs like Manchester United. Supporter-clubaffinity is the key. Companies need shared agendas with all theirstakeholders, and in football its even more crucial. Fans deserve avested interest in the clubs they support passionately and financially.We dont want to run United leave that to the professionals. Wedjust like owners to have the same interests as fans.Duncan Drasdo is chief executive of the Manchester UnitedSupporters Trust.

RAPIDresponses

have megaphones, which theyemploy with visible relish.

Most incredible of all, perhaps, is

that they are doing it for nothing butthe experience. We endure miserablecustomer service all too often, andthats from the professionals. Theseselfless individuals outperform thevast majority of their paid counter-parts without any material reason.Its a motivational marvel.

Perhaps to some extent its becausewe expect less, due to their volunteerstatus. Rather than taking their assis-tance for granted, we are grateful fortheir homespun, genuine eagerness,like kindly village fete attendantsmanning the raffle stall.There is no shortage of candidates

for praise where this Games is con-cerned from Danny Boyle and hisextraordinary crew of performers(also volunteers) at the opening cere-mony, to the athletes themselvesand, some ticketing issues aside,administrators such as Lord Coe andDave Brailsford.

Many of those will likely receive fur-ther rewards in the Queens NewYears Honours. But what of theGames Makers? It may be unlikelythat theyll receive the gold medalsfor showcasing this country thatthey deserve, but a permanent trib-ute in the renovated Olympic Parkwould be a start. For truly makingthis Games, it is the least theydeserve.Frank Dalleres is sports editor of City

A.M. You can follow him on Twitter@frankdalleres


FRANK DALLERES

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For the love of the

Games: LondonsOlympics heroes

7/31/2019 Cityam 2012-08-09

14/19

15TV & GAMEScityam.com

TER

RESTRIAL BBC1

SKY SPORTS 16pm Live USPGA Championship

Golf12am Masters of European

Football 12.30amPremier League

World 1amRingside2am Soccer

AM: The Best Bits 3am Premier

League World 3.30am Ringside

4.30am IAAF Athletix 5am-6am

Super Leagues Supermen

SKY SPORTS 23.30pm Live ECB 40 League

Cricket9.30pm WWE: Late Night

Raw 11.30pmWWE NXT12.30amRacemax 1.30am-2am

Americas Cup Discovered

SKY SPORTS 34pm Live Masters Tennis 11pm

ATP Tour Uncovered 11.30pm

IAAF Athletix 12am NRL Fulltime

12.30am-1.30am Super Leagues

Supermen

BRITISH EUROSPORT6.30pm Live Olympic Athletics

10.15pm Live Olympic Basketball

10.45pm Olympic Games:

Together to London 11.15pm

Olympic Diving 12.15amOlympic

Football 1.30amOlympic Athletics

2amOlympic Canoeing 3am

Olympic Diving 4amOlympic

Football 5amOlympic Games:

Together to London 5.30am-6am

Olympics: English Breakfast

ESPN7pm Press Pass 2012 7.30pm Live

UEFA Europa League Football

10.30pm Legends of the PremierLeague 11.30pmPress Pass 2012

12am PTI London Interrupted

12.30amRussian Premier League

Review 1am Live Major League

Baseball 4am ESPN Kicks: MLS

4.30am Press Pass 2012 5am

PTI London Interrupted

5.30am-6am FIBA Basketball

SKY LIVING7pmCriminal Minds 8pm Teen

Wolf9pm Four Weddings US

10pm Criminal Minds 11pm Greys

Anatomy 12am Bones 1am

Supernatural 1.50am Maury

2.40am Medium 3.30am Bones

4.20am Americas Next Top

Model 5.10am-6am Passport

Patrol

BBC THREE7pm Olympics 2012 11pm

EastEnders 11.30pmSun, Sex and

Suspicious Parents 12.30am

Family Guy 1.15am American Dad!

2am Live at the Electric 4.30am

Cherry Healey: How to Get a Life5.30am-6am British Olympic

Dreams

E47pm Hollyoaks7.30pm How I Met

Your Mother 8pm Big Bang

Theory 8.30pmHow I Met Your

Mother 9pm 2 Broke Girls

9.30pm New Girl 10pm Midnight

Beast10.30pm Franklin & Bash

11.30pmBeaver Falls 12.30am

Big Bang Theory 1.30am Scrubs

2am How I Met Your Mother

2.25am Rules of Engagement

2.50am Desperate Housewives

3.30am 90210 4.10am Greek

4.50am-6am Switched

HISTORY7pm Storage Wars 7.30pm Pawn

Stars 8pm Pompeii: Cellar Of

Skeletons 9pm Ax Men 11pm

Storage Wars 11.30pmPawn

Stars 12am American Pickers

1amAx Men 3am Swamp People

4am Last Days of World War Two

5am Pawn Stars 5.30am-6amAmerican Restoration

DISCOVERY7pmBear Grylls: Born Survivor

8pmGold Rush 9pmHow the

Universe Works 10pm Auction

Hunters11pm Deadliest Catch

12am How the Universe Works

1amAuction Hunters 2am

Auction Kings 3amAmerican

Chopper: Senior Versus Junior

3.50am Wheeler Dealers 4.40am

Bear Grylls: Born Survivor

5.30am-6am Destroyed in

Seconds

DISCOVERY HOME &

HEALTH7pmBirth Days 8pmHow Clean

Is Your House? 9pm Untold

Stories of the ER 10pm

Embarrassing Bodies 11pm

Secretly Pregnant 12am Untold

Stories of the ER 1am

Embarrassing Bodies 2am

Secretly Pregnant 3am Dr G:

Medical Examiner 4amBirth

Stories 5am-6am Portland Babies

SKY17pm The Simpsons 8pm Sinbad

9pmMount Pleasant 10pm

Ultimate Road Wars 11pm

Brit Cops: Law & Disorder

12am My Holiday Hostage Hell1am Road Wars 2am Dont StopMe Now 2.55am Caprica

3.45am Emergency Abroad

4.35am Airline 5.05am-6am Sell

Me the Answer

BBC2 ITV1 CHANNEL4 CHANNEL5

SATELLITE&

CABLE

6pm BBC News

6.30pm BBC London News

7pm CHOICE Olympics 2012:

Coverage of this evenings

athletics at the Olympic

Stadium.

10pm BBC News

10.30pm Regional News

10.40pmOlympics Tonight:Gabby Logan and guests look

back on the 13th days events.

12am BBC News

12.10amOlympic Sportsday:

Dan Walker looks back at the

13th days events.

12.55am Holiday Weatherview1am-6amBBC News

6pm Olympics 2012

7pm Coast

7.30pm EastEnders

8pm Hairy Dieters: How to

Love Food and Lose Weight

9pm CHOICEWonderland:

Young, Bright and on the Right

10pm Olympics 2012

10.40pm Newsnight; Weather11.30pm Amish: A Secret Life

12.30am Sign Zone: Rats,

Traps, Bugs & Cutbacks

Panorama1amHorizon: The Truth About

Looking Younger 2amNatural

World: Living with Baboons 3am

Real Rescues 3.45am-6am Close

6pm London Tonight

6.30pm ITV News

7pm Emmerdale

7.30pm Proud to Be British:

Tonight

8pm Emmerdale

8.30pm Coronation Street

9pm The Briefs

10pm ITV News at Ten10.30pm London News

10.35pmThe Talent Show

Story11.35pmPoms in Paradise12am

Jackpot247; ITV News 3am Proud

to Be British: Tonight 3.25am ITV

Nightscreen 4.35am-5.30amThe

Jeremy Kyle Show

6pm The Simpsons: Three

Halloween-themed tales.6.30pm

Hollyoaks7pm Channel 4 News

7.55pm4thought.tv8pm CHOICE

The Churchills 9pm Embarrassing

Bodies: Live from the Clinic 10pm

Americas Animal Hoarder: Horror

at the Zoo True Stories 11.20pm

Random Acts 11.25pm 24 Hours in

A&E 12.30amUndercover Boss1.25amUndercover at the News

of the World 2.20am A Short

History of Everything Else 2.50am

Britains High Street Gamble:

Channel 4 Dispatches 3.20am

Apocalypse: The Second World War

4.20am Chrono-Perambulator

4.30am Countdown

5.15am-6.10am Deal or No Deal

6pm Monkey Life:

6.30pm 5 News at 6.30

7pm Cowboy Traders; 5 News

Update

8pm The Angel of Death: Born

to Kill?; 5 News at 9

9pm The Hotel Inspector: Alex

Polizzi travels to the Meudon

Hotel in Falmouth.10pm Big Brother

11pm Big Brothers Bit on the

Side

12am SuperCasino3.55am Great Artists 4.20am

House Doctor 4.45am Michaelas

Wild Challenge 5.10am Wildlife

SOS 5.35am-6amWildlife SOS

Fill the grid so that each

block adds up to the total

in the box above or to the

left of it.

You can only use the

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 BREAK

Using 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 let ter and

letters can only be used once in every word. There

is at least one nine-letter word in the wheel.

Place the numbers from 1 to 9 in each empty cell so that

each row, each column and each 3x3 b lock contains all the

numbers from 1 to 9 to solve this tricky Sudoku puzzle.

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

KAKURO

QUICK CROSSWORD

LAST ISSUESSOLUTIONS

KAKURO

WORDWHEEL

SUDOKU

SUDOKU

QUICK CROSSWORD

WORDWHEEL

33 21

16 8

15 29

8 18

6 15 15

45

14 16 10

11 4

22 11

7 34

23 17

8

27

19

29

20

7

7

13

30

14

10

35

11

19

10

12

3

24

22

28

17

26

7

ACROSS

4 Clean with a

broom (5)7 Ascetic Muslim

monk (7)

8 Groom with

elaborate care (5)

10 After the

expected time (5)

12 To and ___ (3)

13 Of a triangle,

having two sides

of equal length (9)

17 And not (3)

19 Bid (5)

22 Characterised

by dignity and

propriety (5)

23 Penalty or fine for

wrongdoing (7)

24 Choose by a

vote (5)

DOWN

1 Dexterous (5)

2 Short underpants (6)

3 Keyboard

instruments (6)

4 Become closed (4)

5 Arabian ruler (4)

6 Growth on the

surface of a mucous

membrane (5)

9 Become ground

down (5)

11 Assign (5)

14 Guarantee (6)

15 Pencil mark remover (6)

16 Dome-shaped

dessert (5)

18 __ _ Piaf, French cabaret

singer (1915-1963) (5)

20 Smoke-duct (4)

21 Narrow fissure

in rock (4)

I

A

R

M

TU

E

N

D

B A L S A M F L

A O E R R A T A

N U L L S R B

N V S E T T E E

S E V E R P H L

A S I N I N E

B G O C A R A T

A E R A T E U I

S A A S P I T

T E N N I S E L

E T T R A N C E

8 7 1 2 6 9 8

6 3 2 7 9 8 5 4 1

8 4 9 9 8 2

5 9 1 3 7 4 1 2

1 4 2 1 9 3 8

4 6 8 9 7

3 7 1 4 2 8 3

4 6 3 1 2 2 3 1

9 5 2 8 5 9

9 8 2 3 5 6 1 7 4

7 5 7 8 9 6 8

The nine-letter word was

COURTESAN

TERRESTRIAL

SATELLITE

&

CABLE

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5


OLYMPICS2012BBC1,7PMGaryLineker presents coverageof this

evenings athleticsat the OlympicStadium, whichincludes the finals of

themens 200m andtriple jump.

WONDERLAND: YOUNG,BRIGHT

ANDON THERIGHT BBC2,9PMTwostudentstry totakethe first stepin theirpoliticalcareers by makingtheirmark on the Conservativeassociations at Oxford and Cambridge.

THE CHURCHILLSCHANNEL4, 8PM

Historian David Starkey describes how

Winston Churchill drewon the lessons

ofhis ancestorJohnto lead theUK

through the Second World War.

TVPICK

7/31/2019 Cityam 2012-08-09

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Dont set off without some of these handy tools

THURSDAY 9 AUGUST 2012 cityam.com16

LIFE&STYLEWORDS BY

ZOE STRIMPEL

TECHNOLOGY

n ASK A NOMADTheres an answer to everything, and with 11,000travelers from 129 countries registered at Ask aNomad, you can quickly and easily access them.Best place for Thai food in LA? What are the rentalcar options in Bogota? This app will help youresearch before you go and help you once yourethere with its nearby feature. Free,worldnomads.com

n TOUR WRISTA tool for sharing photo panoramas (panos)so that users can better grasp places anddestinations, making better decisions aboutwhat to see and do. The app enables you to

discover, shoot and share 360-degreepanoramic images and, with about 30,000panos already, theres a huge about of infoalready there. Free

n HG2The Hedonists Guide hasbecome the iconic hipsterreference point for citybreakers. With essentialinsiders info about the bestbars, clubs, hotels, andrestaurants in a city (youllhave to research museumsand libraries elsewhere),youll be as cool as the localsin no time. Currently 41 citiesare covered. 11.99

n XE.COMIts best, most user-friendlycurrency conversion websiteand thus an invaluable toolfor the traveller keen toknow what theyrespending. Stay on top ofworld markets with livecurrency rates and charts, aswell as precious metalscharts. Every world currencyis covered. Free.

n PACKING PROIts so simple yet so useful and, weirder still, so

overlooked. Packing Proerases last-minute packingerrors and headaches with achecklist. If packing is notyour forte, input the type oftrip youre taking and theapp will make suggestions.Geniuis. 1.99

n FOREVER MAPPart of the pleasantly growingnumber of offline apps, thisrather awesome map bySkobbler brings you a super-advanced offline map forEurope, with fully interactivecity and country maps coveringthe continent. Features includeaddress search, location finder,route calculation and info onplaces of interest. 1.49

n TRIP LINGOWhen you zip somewhere for business ora short break, you dont necessarily wantto or have time to learn the language.

Enter Trip Lingo, which provides youlanguage on a need-to-know basis in abeautifully designed format with quirkytwists such as a slang slider to helpyou with colloquialisms.

n TOURIST EYEA trip planner that allows you to plan yourtrip day by day before you go by adding thecities and places youre going to visit. If youdont plan, you can just open the app and itlltell you whats a must-see. Once youre back,use it as a journal of photos, messages andcheck-ins. Use offline to avoid roamingcharges. For iPhone and Android (free),touristeye.com

SO, THATnice little icon with aretro telly you can see on thehome screen of your iPhone?

Yeah, thats not going to bethere for long. Apple has stepped upits feud with Google by removing itsnative support for YouTube in thenext version of its mobile operatingsystem.

How much is this going to affectthe life of the average iPhone user?

Well, not very much. There will be anapp that does exactly the same thing

within five minutes.Wait, that doesnt make for a very

interesting column, does it? What amI supposed to do now? Sit heredrinking tea and reading Take ABreak? (its not mine, I found it. I did.)

OK, let me ask that question again.

How much is it going to affect the lifeof the average iPhone user? OH MY

GEEKSPEAK

STEVE DINNEEN

GOD, WE MAY AS WELL JUST GIVE UPAND DIE. You should probably justsmash your handset into your tear-stained face until there is nothing left

but broken glass and cartilage. Thingswill never, ever be the same again. Im

feeling better about this columnalready. And its not just YouTube thathas vanished from the upcomingiPhone Google Maps will bereplaced by a new Apple version,ingeniously called Maps. EvenGoogles position as the defaultsearch engine on Safari whichapparently costs Google somewherein the region of $1bn a year in sharedad revenue is being questioned. Itslike watching the breakdown of amarriage in slow motion. At the start,

Apple happily showed Google off to

its mates, going as far as inviting it onstage to the launch of the original

iPhone. Apples friends, who are aweird bunch at the best of times, letalone when they are all riled up bythe prospect of a new product,

whooped and cheered, whichprobably made Google feel a bitawkward. Fast forward ten years andthey cant seem to agree on anything,from privacy to patents. But could

Apple really ditch Google in favour ofMicrosofts Bing? That this is even aserious suggestion shows how muchthe technology landscape has shifted.Back in the days when Windows was

still a rising star in the softwareworld, Steve Jobs famously yelled at

Bill Gates, in a crowded room: Youreripping us off. I trusted you, and now

youre stealing from us (promptingthis zinger from Gates: Well, Steve, Ithink theres more than one way oflooking at it. I think its more like we

both had this rich neighbour namedXerox and I broke into his house tosteal the TV set and found out that

you had already stolen it).I wouldnt panic yet though: it

probably wont happen. Googlesearch is too ingrained in the psycheof Apple users and people who love

Apple tend to hate Microsoft. Whatthe escalation in this battle of thetech heavyweights does show is thatnew chief executive Tim Cook is every

bit as ruthless as his former boss.Losing the YouTube icon isnt a

huge deal but it could be a sign ofmuch bigger things to come.

Apple smashes its retro telly

7/31/2019 Cityam 2012-08-09

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1TBR Report "IBM System x x86 servers: Meeting the demands of todays enterprises by combining value and support," January 2012.2 Source: Intel Performance comparison using SPECfp*_rate_base2006 benchmark. Baseline score of 267 on prior generation 2S Intel Xeon processor X5690 (3.46GHz, 6-core, 12MB L3, 6.4 GT/s, 130W)based platform published at www.spec.org as of 6 Sept 2011. Estimated new score of 486 on 2S Intel Xeon processor E5-2690 (2.90GHz, 8-core, 20MB L3, 8.0 GT/s, 135W) is based on Intel internalmeasured estimates as of 6 Sept 2011 using two Intel Xeon processor E5-2690, Turbo Enabled, EIST Enabled, Hyper-Threading Enabled, 64GB memory (8x8GB DDR3-1600), Red Hat Enterprise Linux Server6.1 beta for x86_6, Intel Compiler 12.1.3 x3500 M4 supports up to 768GB of memory using 32GB LRDIMMs in its 24 memory slots. Previous generation x3500 M3 supports up to 192GB of memory.4 Ships with 4 1Gb Ethernet ports standard and supports integrated slot-less 10Gb Ethernet with Virtual Fabric. Previous generation server includes two 1Gb Ethernet slots and requires use of a PCI Express slotto support 10Gb Ethernet.5 x3500 M4 supports up to 32 internal 2.5" HDD. Previous generation x3500 M3 supports up to twenty four 2.5" HDD.6 Quarterly price quoted is based on IBMs 0% System x Solution Finance offering (FMV lease). Terms & Conditions Apply: Offering availability subject to credit approval; for more details and full Terms andConditions please visit: http://www.ibm.com/financing/uk/lifecycle/acquire/xsolutionfinancing.html.Rates and offerings are subject to change, extension or withdrawal without notice. Prices include VAT at a rate of 20%.IBM hardware products are manufactured from new parts or new and serviceable used parts. Regardless, our warranty terms apply. For a copy of applicable product warranties, visithttp://www.ibm.com/servers/support/machine_warranties. IBM makes no representation or warranty regarding third-party products or services. IBM, the IBM logo, System Storage and System x are registeredtrademarks of International Business Machines Corporation registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. For a current list of IBMtrademarks, see www.ibm.com/legal/copytrade.shtml. Intel, the Intel logo, Xeon and Xeon Inside are trademarks of Intel Corporation in the U.S. and other countries. All prices and savings estimates are subjectto change without notice, may vary according to configuration, are based upon IBMs estimated retail selling prices as of 01/04/2012 and may not include storage, hard drive, operating system or other features.Reseller prices and savings to end users may vary. Products are subject to availability. This document was developed for offerings in the United Kingdom. IBM may not offer the products, features, or servicesdiscussed in this document in other countries. Contact your IBM representative or IBM Business Partner for the most current pricing in your geographic area. 2012 IBM Corporation. All rights reserved.

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