England Expects: 100bngamble To Save Uk Economy

EMERGENCY measures to try to kick start an
economic recovery were announced by Sir

Mervyn King and George Osborne at
Mansion House last night, aiming to pump
cash into the financial system and boost
lending to businesses.
The printing presses are set to be switched
back on at the Bank of England as King
warned the economic outlook had deterio-
rated rapidly in the last four weeks. The
Banks governor added: The Eurozones cri-
sis has created a black cloud of uncertainty
hanging over our economy, with a
paralysing effect.
nUnder a new 80bn plan launched jointly
by the Bank of England and the Treasury,
banks will be able to swap loans to indi-
viduals and firms for high quality gov-
ernment bonds, as long as they promise
to lend out this cash at cheap rates.
n Meanwhile King promised to provide
banks with whatever liquidity they
require. At least 5bn a month will be
injected through the activation of an
emergency liquidity scheme designed
to combat market-wide stress of
an exceptional nature. The liquidity injec-
tions will run for an unspecified period,
thought to be three months or more.
n And the Bank of Englands new Financial
Policy Committee (FPC) will now have to
focus on growth as well as financial stability,
which may lessen the pressure on banks
which are currently being forced to cut lend-
ing and build up capital buffers.
n Giving his strongest hint yet that more
quantitative easing (QE) is on the way, King
said the case for a further monetary easing
is growing. He argued against the Bank buy-
ing corporate debt, instead favouring
increasing the 325bn pile of government
bonds it has bought so far.
The Bank of England governor said those
who doubted the impact of further
monetary stimulus in present con-
ditions are too pessimistic, and
added further easing and attempts
to lower bank funding costs are not
alternatives. We can do both.
But as QE has failed to boost lend-
ing sufficiently so far, the Treasury
and Bank announced the plan
to swap loans for gilts,
so long as banks then
increase lending.
The scheme will be
open for the next 18
months and the Bank of England will hold
the assets for up to four years, exchanging
them back to banks when, the hope is, the
economy will have recovered.
Osborne believes it will result in an extra
80bn of lending to firms and households
although there are downsides, with the
Bank taking extra risks to back lending.
Looking to the longer-term, the chancellor
also shifted the new financial regulation
regime, giving it an extra objective of sup-
porting the Treasurys economic policy.
Planned as a pro-growth measure, the dual
mandate will create a legal requirement for
the FPC to report, for every action it takes,
how that action is compatible with econom-
ic growth as well as stability.
However, that could be difficult to achieve
as promoting stability may reduce lending,
hitting growth.
King also announced the extended collat-
eral term repo facility will be activated
today, giving banks easy access to liquidity.
Such liquidity facilities are normally provid-
ed at punitive rates to encourage banks to be
more prudent, but this liquidity will be
priced cheaply, in the Banks desperate bid
to spark the economy back to life.
FTSE 100 5,467.05 -16.76 DOW 12,651.91 +155.53 NASDAQ2,836.33 +17.72 /$ 1.55 unc / 1.23 unc /$ 1.26 unc
BUSINESS WITH PERSONALITY
LONDON2012
days to go
CONFIDENCE HIGH AHEAD OF SWEDEN EURO CLASH
See Pages 34-35
ALLEN STANFORD GETS 110 YEARS IN PRISON FOR FRAUD
See Page 4
42
www.cityam.com FREE ISSUE 1,653 FRIDAY 15 JUNE 2012
Certified Distribution
02/04/2012 till 29/04/2012 is 100,668
BY TIM WALLACE AND MARC SIDWELL
ENGLAND EXPECTS
ECONOMIC CRISIS: Page 2, 4, 6, 7

PICTURE GALLERY: Page 5

King unveils dramatic flood of cheap credit as Eurozone crisis paralyses growth
Mervyn King said the case for further monetary easing is growing
Chancellor George Osborne said
a lack of credit was costing jobs
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ALLISTER HEATH: Page 2

100BNGAMBLE TO
SAVE UK ECONOMY
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
IN BRIEF
French banks ratings slashed
nMoodys Investors Service has today
downgraded the standalone bank
financial strength rating of five French
lenders Credit Industriel et
Commercial, Credit Mutuel Arkea,
Oddo & Cie, Banque Federative du
Credit Mutuel and the BPCE including
some of its subsidiaries citing their
vulnerability to loss of investor
confidence in the highly uncertain
current European operating
environment.
OPEC leaves oil output on hold
nOpec left the ceiling for oil
production on hold yesterday,
powerless to do anything other than
hope top producer Saudi Arabia scales
back supplies unilaterally soon to
stem a $30 (19.28) slide in prices.
Several in the Organisation of the
Petroleum Exporting Countries called
on Saudi to cut back to bring
collective supply down to the 30m
barrel a day limit set in December to
defend $100-a-barrel crude.
Egypt court dissolves parliament
nEgypts supreme court ruled
yesterday to dissolve the Islamist-led
parliament, plunging a troubled
transition to democracy into turmoil
just two days before an election to
replace ousted leader Hosni Mubarak.
Islamists who gained most from
Mubaraks overthrow decried what
they called a coup by an army-led
establishment still full of Mubarak-era
officials. They said the street
movement that spurred last year's
uprising would not let it pass.
Central banks on standby
if Greek vote hits markets
CENTRAL banks have devised a plan
to boost liquidity and prevent a cred-
it crunch if Greeks fail to elect a pro-
bailout government on Sunday.
A senior US official cautioned that
the Greek election will not provide
the definitive signal on what hap-
pens next, stating that central
bankers are on standby to ensure
enough cash is flowing through the
financial system.
The central banks are preparing
for coordinated action to provide liq-
uidity, a G20 aide told Reuters.
The news came after markets were
propped up by rumours that Greeks
are set to vote for a pro-bailout gov-
ernment in which event no such
liquidity move would be required.
Greek stocks shot up by over 10 per
cent yesterday, followed a spike of
around 20 per cent in Greek bank
stocks, provoked by the rumoured
poll data.
And markets throughout the
world were also bolstered by the bull-
ish news, which would boost the
chance of Greece staying in the
Eurozone.
Greek stocks are in rally mode on
hopes for a decisive victory for the
conservative New Democracy party,
said Andrew Wilkinson, chief eco-
nomic strategist at Miller Tabak & Co
in New York.
WEAK US jobless figures and lower
inflation helped fuel an uptick on
Wall Street yesterday, as traders
took the data as a signal that a new
round of quantitative easing is
more likely.
The Labor Department reported
386,000 new claims for jobless
benefits last week, an unexpected
rise of 6,000 on the previous week.
And inflation fell sharply in May,
with consumer prices dropping a
steeper-than-expected 0.3 per cent.
This was the biggest drop since
2008 and took annual inflation to
1.7 per cent. Inflation rose 0.2 per
cent excluding food and fuel.
Meanwhile the US current
account deficit widened to
$137.3bn in the first quarter, the
Commerce Department said.
The fall in consumer prices will
eventually provide a boost to both
the household and corporate
sectors, as it stems from lower fuel
costs, said ING economist Robert
Carnell. But it may be several
months before we start to see some
evidence of the power of low fuel
prices in other activity data.
Others said the readings could
pave the way for the Fed to ratchet
up its QE programme at next
weeks policy meeting. Pressure is
mounting on the Fed to give the
economy a shot in the arm, said
Chris Williamson at Markit.
US investors eye
stimulus after
weak jobs stats
Antonis Samarass New Democracy party is rumoured to be doing well in the polls
2
ECONOMIC CRISIS
BY MARION DAKERS
BY HARRY BANKS
To contact the newsdesk email news@cityam.com
U
SUALLY, formal dinners at
Mansion House in the City are
highly enjoyable but somewhat
predictable affairs. This one was
unusually exciting. For the first time I
can remember, the speeches from
George Osborne and Sir Mervyn King
included major news bombshells. The
Bank is launching an 80bn funding
for lending plan to cut the cost of
credit and boost its availability; it will
this morning announce a new
liquidity programme worth at least
5bn a month; and the governor was
as explicit as he could possibly be that
more quantitative easing is on the
cards. King was extremely gloomy,
warning that conditions had
deteriorated over the past four weeks.
It is absolutely right for the central
bank to provide liquidity to private
banks if the markets seize up; that is
its core role as lender of last resort. It
EDITORS
LETTER
ALLISTER HEATH
Governments plan to subsidise credit could easily backfire
FRIDAY 15 JUNE 2012
makes sense for the Bank to be on
standby ahead of Greeces elections
this weekend. But the fact that this liq-
uidity will be provided cheaply (rather
than at a penal rate) will be seen as an
unnecessary hidden subsidy.
The funding for lending plan is
much more controversial. While it
will be widely welcomed, it is a major
gamble. Im certainly not sold on it. At
the moment, banks can raise financ-
ing from the markets, but this is cost-
ly. The Bank thinks that the best way
to reduce businesses and consumers
cost of borrowing (an objective it sup-
ports) is to make it cheaper for banks
to raise funds while simultaneously
making this cheap funding contin-
gent on them lending at a lower cost.
Banks will be able to hand over any
new loans they make to the non-finan-
cial sector mortgages, consumer
loans, loans to small business to the
Bank of England, which will use these
assets as collateral against which to
lend money to the banks. There will
be a haircut to try and reduce the risk
to the Bank if the value of the asset
collapses. Borrowing against collateral
in this way is currently done privately
but the Bank scheme will be
designed to be cheaper and thus to
reduce banks funding costs. The pric-
ing will reward banks that lend the
most and pass on low interest rates.
There are problems with this. It
0.54 points, the rate on credit card
debt by 0.57 points and a 2-year fixed
mortgage with 75 per cent loan to
value is up 0.66 percentage points.
This has been caused by a combina-
tion of regulatory changes (banks
need to hold much more capital in
reserve and also more liquidity), high-
er risk and increased bank funding
costs. The problem is not the swap
rates, which have remained roughly
constant. Instead, banks, because of
regulations, now need to rely far more
on sterling time deposits. To attract
savers, these have shot up by 0.4 per-
centage points over that period. Why
not simply suspend such regulations?
That would cut the cost of credit with-
out necessitating any grandiose and
risky new government schemes.
could encourage dodgy lending, given
that the Bank of England will under-
write some risks. It involves trying to
plan the volume of credit by private
banks. It aims to boost all forms of
credit but since when is the UKs
problem insufficient credit card bor-
rowing? If the view is that small firms
are being deprived of funds, then why
subsidise all loans?
There are two reasons why its hard
to get a mortgage: new regulations
and the risk of further declines in
house prices and increased unemploy-
ment, which would cause huge losses
to lenders. Small business loans have
been crippled by the need to hold
much more capital against them. The
story is similar in other areas. Since
August 2011, the average rate on a
tracker mortgage is up 0.51 percent-
age points, the rate on a 2-year fixed 90
per cent loan to value mortgage is up
We caught a glimpse of a headline
earlier suggesting that 80 per cent of
Greeks want to remain inside the euro
area, which is what we have thought
would remain an influential factor
throughout the elections.
Shares jumped in the US, the Dow
Jones closing up 1.24 per cent, to
12,651.76, while the Standard & Poors
500 also gained more than one per
cent. The Nasdaq rose by 0.63 per cent.
The MSCI world equity index, which
measures share prices across the globe,
added 0.2 per cent, while the euro
gained ground against the dollar.
Yet many analysts see the gains as a
short term blip, given the rising bor-
rowing costs faced by the key
Eurozone governments of Spain and
Italy.
Uncertainty continues to rock the
single currency area, despite yester-
days hopes over the outcome of the
Greek election.
Radical left part Syriza has been high
in the polls, taking advantage of anger
among voters at the conditions
imposed on Greece in order for it to
receive its latest tranche of aid from
lender states.
Money managers reap US crop
insurance rewards
Institutional money managers have
emerged as unlikely beneficiaries of a
subsidised safety net for US farmers set
for expansion by Washington.
Basel III will damage developing
countries
Tough global bank reforms will be
disproportionately difficult to implement
in developing economies and will damage
their growth, a global taskforce of
bankers and businessmen from emerging
markets is set to warn. The so-called
Basel III rules will impose capital and
liquidity requirements that were designed
for US and Europe institutions but would
be difficult to implement in emerging
economies, according to a report to be
issued on Sunday by the B20 group of
businesses.
AIB to cut top pay in drive on costs
Allied Irish Banks has announced plans to
slash executive and management pay,
freeze staff salaries and switch employees
from its existing defined benefit pension
scheme to cut costs.
Caff Nero brews battle in Poland
Caff Nero is to do battle against Costa
Coffee and Starbucks in Central Europe after
taking a majority stake in a Polish coffee
shop operator as part of an overseas
expansion drive.
Broker says bank added Kerviels loss
A fellow banker stepped forward yesterday
to defend Jrme Kerviel, the rogue
trader saying he was not solely to blame
for the 4.9bn scandal that almost brought
Socit Gnrale to its knees.
Overhaul to make SFO top of its game
The new head of the Serious Fraud Office
plans an overhaul to bring the agency back
to the the top of its game, after it was
widely criticised for failings in its
investigation into the Tchenguiz brothers.
Fifth of international jobs dont work
out as executives return home
A fifth of executives who move overseas for a
new role with their company give up and
return home within two years leaving
businesses out of pocket, a study revealed.
RIM aims to bring private-equity
investor on board
Research In Motion said yesterday it is
nominating Timothy Dattels, an investor at
TPG Capital and a former partner at
Goldman Sachs Group to its board.
AOL Wins Proxy Contest
AOL yesterday won a proxy fight with
activist investor Starboard Value, relieving
some of the scrutiny of chief executive Tim
Armstrong's investments in online content
businesses like the Huffington Post.
WHAT THE OTHER PAPERS SAY THIS MORNING
SHARES in Credit Suisse plunged by
more than a tenth yesterday after
Switzerlands central bank urged it
to cut dividends or issue shares to
improve its below average capital
ratio and protect it from future
financial shocks.
The Swiss National Bank singled
out Credit Suisse for its risk-weighted
capital ratio of 5.9 per cent an
acceptable level under the Basel II
rules but below the global average.
It also called on rival bank UBS to
hike its risk-weighted capital ratio
above its current 7.5 per cent.
And the SNB said these figures fall
to 1.7 and 2.7 per cent respectively
for loss-absorbing capital.
Both firms have very high lever-
age, the SNB said in its annual stabil-
ity report, despite cutbacks on risky
assets at both banks. UBS and Credit
Suisse should trim their balance
sheets, and not merely slash risk-
weighted assets, it added.
SNB hits out at
Credit Suisses
capital buffer
BY MARION DAKERS
While it does not forecast large loss-
es or writedowns for the countrys
banks this year, the SNB is worried
that if the rest of Europe spirals, the
banks face substantial losses through
exposure to mortgages, corporate
loans and equities.
Early signs of a possible recovery in
the euro area, which had emerged at
the beginning of 2012, have vanished
again, the bank warned.
Credit Suisse, which has paid divi-
dends throughout the crisis, gave
SwF0.75 per share to investors in
2011.
Credit Suisse Group AG
14Jun 8Jun 11 Jun 12Jun 13Jun
18.0
18.5
17.0
17.5
19.0
19.5
20.0
20.5 CHF
17.01
14Jun
INVESTORS in beleaguered exchange
operator Plus Markets yesterday said
that a revised offer for part of the
firm was a token gesture that will
not stop their rebellion, as new
allegations surfaced that the board
repeatedly refused offers of funding.
Kuwaiti firm Amari Dhari, which
owns 17 per cent of Plus, yesterday
claimed it had offered new finance
to Plus Markets on multiple occa-
sions over the last twelve months.
Calling the board incompetent,
Amari Dhari said their actions had
directly led to the destruction of
shareholder value.
Last month ICAP entered into an
exclusive agreement with Plus to
buy the stock exchange unit and its
liabilities for 1, angering investors
who claim there was little warning.
Yesterday the offer was upped to
500,000 but shareholders remain
frustrated that directors are set to
take home 423,000 if the deal
passes a vote on Monday.
Investor Simon Chapman told City
A.M.: Shareholders are angry at the
directors for what they consider to
be a wholly inappropriate pay-off.
ICAP and Plus seem to be showing
signs of being very worried about
the vote.
Plus Markets
investors angry
over new bid
BY JAMES WATERSON
Allen Stanford (above right), who is 62, will now spend the rest of his life behind bars
THE SWISS National Bank
yesterday dangled the threat of
capital controls to hold down the
value of the franc if the Eurozone
crisis escalates, days before a Greek
election that could drive another
flood of money into the safe-haven
currency.
The central bank said it was
determined to defend a cap of 1.20
per euro it imposed in September
and was ready to buy foreign
Swiss central bank promises to
act to defend cap on the franc
BY HARRY BANKS
currency in unlimited quantities.
Even at the current rate, the
Swiss franc is still high. Another
appreciation would have a serious
impact on both prices and the
economy in Switzerland, SNB
chairman Thomas Jordan said.
The SNB will not tolerate this. If
necessary it stands ready to take
further measures at any time.
The SNB had to expand its forex
reserves by nearly a third to make
the cap stick last month, as fears
rose of a Greek exit from the euro.
TEXAN tycoon Allen Stanford, famed
for bankrolling international cricket
competitions in the Caribbean and
the UK, was yesterday sentenced to
110 years in prison for running a
$7bn (4.5bn) Ponzi scheme.
The sentence came after 62-year old
Stanford, convicted in March of 13
charges including fraud and
conspiracy, denied defrauding
anyone. He insisted his firm was a
real brick-and-mortar global financial
Stanford sentenced to over a century for fraud
BY KATIE HOPE
empire, which only collapsed after
the US government seized its assets.
Stanfords lawyers had asked for a
sentence of just three years, while
prosecutors wanted a 230-year
sentence the maximum possible
sentence for his convictions.
Stanford was convicted of selling
deposit certificates from his bank in
Antigua. Instead of investing them, it
was alleged that he used them to
fund an extravagant lifestyle of
yachts and private jets.
SNB chairman Thomas Jordan insisted that he will protect the francs peg to the euro
City welcomes Vickers changes
THE CITY last night breathed a sigh
of relief after getting a first look at
the governments proposed banking
reforms, which amend the Vickers
plan to strengthen the sector, taking
into account international
competition and the needs of banks
business customers.
The main aim is to allow bad
banks to fail safely without harming
other institutions or retail
customers, and to remove the
implicit state backing to the largest
banks in the sector.
Retail banks will be separated
from investment banks by a ring-
fence, capital requirements will rise
and resolution procedures will be
reformed to make sure bondholders,
rather than depositors or the
BY TIM WALLACE
taxpayer, loses out in the event of
any bank collapse, as proposed by
the Vickers report last Autumn.
However, some of Vickers plans
were recognised as threatening the
quality of services offered, and
undermining the UKs industry
compared to less heavily regulated
industries in other countries.
Under the new proposals, basic
hedging products will be allowed
within the ring-fenced banks, giving
SMEs access to instruments which
manage their risk exposures but
were banned under Vickers plan.
However, in exchange for that the
banks will have to step up their risk
management procedures.
Similarly the limit on retail banks
access to wholesale funding markets
will not be as strict as Vickers
envisaged international guidelines
are still being determined, and the
government says it does not want to
make funding conditions more
difficult for UK banks than their
international rivals. The new
proposals also back a three per cent
leverage limit, not Vickers four per
cent, keeping in line with the Basel
plans and again stopping UK firms
competitiveness being undermined.
The City of London Corporation
welcomed the changes, arguing:
Leverage standards should be
agreed within an international
framework otherwise Britain could
be placed at a competitive
disadvantage.
But Sir John Vickers disagreed,
saying the limits on leverage should
go further, and urging the
government to resist pressure to
weaken [the plans] effectiveness.
The sentence, handed down by US
district judge David Hittner, marks a
dramatic fall from grace for the
flamboyant sponsor of Twenty20
cricket.
Listed by Forbes as the worlds
605th richest person in 2006,
Stanford marked a five-year cricket
sponsorship deal in typical style by
arriving at Lords cricket ground in a
black helicopter and posing for
photographs with a perspex case
containing $20m in cash.
Key proposals
n Retail banking operations will be ring-
fenced, with operations core to consumer
and small business services separated from
investment banking.
n Those ring-fenced operations will face lim-
its on exposures to other banks they will
only be allowed to carry out tasks like facili-
tating other institutions payments and man-
aging liquidity.
n The biggest banks will hold 17 per cent of
risk-weighted assets as primary loss-absorb-
ing capital.
n Bail-in bonds will be used to make
creditors cover some of the cost of a bank
failing, without a full collapse.
n But depositors will still be protected and
will have a senior claim to bondholders, as
well as a legal guarantee on deposits up to
85,000.
n Banks must comply with Basel IIIs three
per cent tier one leverage ratio.
WHAT IS IN THE WHITE PAPER?
Differences from Vickers
n The binding leverage ratio of three per
cent is in line with other countries but
allows more borrowing than Vickers
proposed four per cent, as the tighter limit
would make UK banks less competitive than
their foreign rivals.
n Ring-fenced retail banks will be able to
sell some vanilla derivative products, like
interest rate swaps, to small firms vickers
did not want this to happen, but it enables
SMEs to better manage risk exposures.
n Limits on ring-fenced banks wholesale
funding operations will not be a strict as
Vickers planned, again because of
competitiveness concerns.
n Building societies will be exempt from
ring-fencing rules.
n Guidelines have been issued regarding
overseas capital exemptions, becoming
more accommodating to big banks and
giving regulators more certainty.
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FRIDAY 15 JUNE 2012
5
NEWS
cityam.com
A CLEAN-UP operation is
underway at Finsbury Square
after around 40 remaining
people were kicked out of the
Occupy camp and it was
closed down.
Islington council said it
expects to re-open the square
within a few weeks following
the eviction in the early
hours of yesterday.
Protesters have moved
barely a mile away, however,
to Shoreditch Park, and now
Hackney council has begun
legal action in an attempt to
remove the group of 20 tents.
It follows the opening of
another camp at Hampstead
Heath, by allied group
Occupy Nomad, which was
cleared on Wednesday after
less than 24 hours.
Yesterday High Court
enforcement officers, backed
by police, swooped on
Finsbury Square at about
1am. The eviction was carried
out relatively peacefully and
there were no arrests.
Islington council has said the
total cost of the occupation
could hit 100,000.
The camp, which was set
up in October, was within
close reach of the offices of
Royal Bank of Scotland, UBS
and other global banks.
It had swelled to about 135
tents at its height and was
latterly made up of protesters
BY PETER EDWARDS
Activists hit Shoreditch after Finsbury Square eviction
THE CITYS finest braved
the rain last night to hear
chancellor George Osborne
outline his dramatic plans
to try and prevent the
Eurozone crisis causing a
second credit crunch.
In his annual Mansion
House speech to the City,
the chancellor said he was
no longer prepared to
stand on the sidelines.
And Bank of England
governor Mervyn King said
bolder action was now
required.
BY KATIE HOPE
Finsbury Square will now be cleaned up
and homeless people. The
council said it has offered
advice and support to
vulnerable people who
needed help.
Activists said yesterday
that they have not ruled
out setting up another
camp in London.
MansionHouse event
attracts Citys finest
A man hands Osborne a maths text book as he arrives Barclays chair Marcus Agius FSA chair Adair Turner (left) and Charles Stanley chair Sir
David Howard were there to hear
BBAs Angela Knight and RBS chair Sir Philip Hampton
FRIDAY 15 JUNE 2012
6
ECONOMIC CRISIS
cityam.com
ITALYs three-year borrowing costs
spiked to 5.3 per cent at an
auction yesterday, underlining the
mounting pressures on the
Eurozones third-largest economy
after a Spanish aid deal failed to
convince investors the blocs crisis
can be contained.
With its economic reforms
stalling and market speculation
rising that it too may eventually
need a bailout, Italy paid the most
since December for three-year
debt which it had sold at 3.9 per
Under pressure Italy sees costs
spike to 5.3pc at bond auction
BY CITY AM REPORTER
cent only a month ago.
But in highly volatile markets
just one day after a three-notch
downgrade of Spain's sovereign
rating, Rome raised its top
planned amount of 4.5bn from
three bonds and sold the debt at
yields below market levels.
These auctions will be judged a
success in the short term, but the
trend in yields and spreads is
something which requires
something from the policymaker
level to reverse, said Peter
Chatwell, a rate strategist at Credit
Agricole in London.
Italian PM Mario Monti has seen his governments borrowing costs soar
THE EUROZONES much vaunted
plan to impose strict fiscal rules on
its member states is almost dead on
arrival, according to analysts at
investment bank JP Morgan.
The so-called fiscal compact will
prove too little, too late, and will fail
to achieve its goals, the bank argued
yesterday.
Given where deficits and debt cur-
rently are, and the broader growth
environment, the fiscal pact is likely
to fail, the note said.
For a number of sovereigns in the
region, the journey is just too long
and the broader underlying growth
environment is just too lacklustre. At
some point, policymakers will need
to recognise this and put the region
on a different path.
The European Union summit at the
end of this month is a chance for
authorities to devise fresh plans to
rescue the ailing single currency, the
bank suggested.
Dismissing the Eurozones com-
JP Morgan says
Eurozone fiscal
rules set to fail
BY JULIAN HARRIS
pact, JP Morgans hard-hitting note
said that it was merely a repeat of
failed previous attempts to impose fis-
cal discipline, such as the Maastricht
treaty and Stability and Growth Pact,
which was supposed to set rules for
countries joining the euro.
Even with eurobonds and a differ-
ent fiscal objective, Spanish growth
performance is likely to be lacklus-
tre, the note said, using the troubled
Mediterranean state as an example of
why the compact cannot work.
This highlights the need for some
additional sources of growth, it said.
Growth could come from the meas-
ures that are likely to be contained in
the growth pact; it could come from
faster demand growth in the core of
the euro area; it could come from
structural reforms; or it could come
from an easier areawide monetary
stance and a sharply lower currency.
Ireland recently held a referendum
in which voters agreed to the fiscal
compact, yet the measures face oppo-
sition in parliaments of many mem-
bers of the single currency.
THE EUROZONE will not tear up the
main targets of Greeces bailout no
matter who wins Sundays elections,
but it might consider giving a new
government in Athens some leeway
on how it reaches them, officials in
Brussels have said.
Even that offer would depend on
a government being in place that
was prepared to stick to the
prescribed austerity path and some
policymakers are reluctant to go
even that far.
If Greece rejects the bailout deal
it struck in February, all bets would
be off and pressure would grow on
it to quit the currency bloc.
The headline targets cannot be
changed, one senior EU official
said. There could be some tweaks
to the path to get there, but not the
goals.
No Greek party has called for
euro exit, but the leftist Syriza
party rejects the stringent terms of
the bailout, without which Greece
will default.
Syriza leader Alexis Tsipras
believes he can get much more
favourable terms for Greece a view
EU leaders roundly reject. French
President Francois Hollande has
also warned Athens that if it
reneged on the terms of the bailout,
it could have to leave the euro.
Brussels could
ease terms of
Greek bailout
BY CITY AM REPORTER
SPANISH Prime Minister Mariano
Rajoy was yesterday forced to call an
emergency meeting with cabinet col-
leagues as the governments borrow-
ing costs touched the dreaded seven
per cent mark, a new euro-era high.
Rajoy convened with his senior eco-
nomic and finance ministers in a bid
to thrash out ways of tackling the
countrys escalating debt crisis.
Yields on 10-year government
bonds neared seven per cent dur-
ing trading yesterday, a level
that some investors fear could
spark the beginning of a
need for a large scale
bailout.
Its psychological
though, not actually a
problematic level, said
Holger Schmieding, chief
economist of Berenberg
Bank. If borrowing costs
were fixed at seven per
cent for a year, or even
more, Spain
would be fine.
But it is the
lack of trust
w h i c h
sends it
higher and
h i g h e r
Rajoy convenes
panic meeting
as yields hit 7pc
BY JULIAN HARRIS
and causes a death spiral.
At close, yields printed 6.91 per
cent, a rise of 16 basis points during
the day.
Markets opened to news from the
previous night that leading credit rat-
ing agency Moodys had given the
thumbs down to the Spains banking
bailout, arguing that it would make
the situation worse by increasing the
countrys debt burden.
Moodys rating slipped three notch-
es to the near junk rating of
Baa3, adding that it could
cut the level even further
within the coming three
months.
Despite yields contin-
uing their rise, the
spread with German
yields did not widen
further, according to
Kathleen Brooks from
Forex.com.
This suggests that the
markets expect
Germany to do some-
thing like guarantee
European debt hence its
credit rating is deteriorating,
Brooks explained.
IN BRIEF
Egan-Jones downgrades France
nRatings agency Egan-Jones cut
Frances sovereign credit rating to
BBB-plus with a negative outlook last
night, citing expectations that the
country's funding costs will see more
pressure as the Eurozone sovereign
debt crisis continues to roil markets.
The deterioration in France's credit
metrics combined with the needed
[support] for Frances banks are likely
to pressure the country, the firms
statement said.
Protests as Monti meets Hollande
nItalians protesting against the
governments austerity policies
clashed with police outside the lower
house of parliament yesterday as
Prime Minister Mario Monti met French
President Francois Hollande next door.
The main crowd a few hundred-
strong waved labour union flags and
kicked footballs at the riot police.
IIF urges monetary loosening
nMajor central banks should ease
monetary policy in coordination to
give a powerful boost to market
confidence and help restore stuttering
global growth, a leading group of
international bankers said yesterday.
The Institute of International Finance
called on the G20 to deliver this
medicine as part of a plan to revitalise
economic growth and job creation.
Charles Dallara, IIF managing director,
said four or five central banks from
industrialised and developing nations
easing simultaneously, based on their
own economic conditions, would have
substantial benefits.
SPANISH banks gross borrowing
from the European Central Bank
(ECB) soared to a record high of
324.6bn (263bn) last month, up
from 316.9bn in April, according
to data that Spains central bank
released yesterday.
The struggling Eurozone
countrys lenders increasingly
have to tap the ECBs funds as they
are frozen out of the interbank
funding market due to banks
reluctance to lend to each other.
Net borrowing also hit a fresh
high of 287.8bn, the Bank of
Spanish banks borrowing from
ECB jumps to record of 325bn
BY JULIAN HARRIS Spains figures showed. The net
figures remove the average
amount that banks stash in the
ECBs overnight deposit facility.
The rise in borrowing conveys
the severity of the predicament
some banks found themselves in
ahead of last weekends bailout
announcement, commented
INGs Martin van Vliet.
Banks in Spain are now by far
the most dominant users of ECB
funding, accounting for about 30
per cent of outstanding ECB
liquidity, he said, yet added that,
relative to size, Portuguese, Irish
and Greek banks borrow more.
Mario Draghis ECB has been increasingly leaned upon by Spains lenders
PM Mariano Rajoy wants to
contain Spains debt
FRIDAY 15 JUNE 2012
cityam.com
PRESSURE to reduce fees poses a
threat to the quality of British
auditing, a leading member of the
Financial Reporting Council (FRC)
said yesterday, as the body issued
its annual reports on the perform-
ance of the countrys four largest
accountancy firms.
Paul George, the organisations
executive director of conduct, told
City A.M.: Commercial pressures
run the risk of undermining audit
quality if firms reduce the amount
of work they undertake in order to
protect margins.
We absolutely believe that an
audit needs to be value for money
[but] the level of fee pressure that
is out there is causing challenges.
The study reveals that there has
been a year-on-year improvement
in the quality of auditing, with
fewer than 10 per cent of sample
audits falling into the worst cate-
gory.
PwC posted the best perform-
ance of the big four, with almost
60 per cent of its sample audits
judged to require limited
Audit quality
threatened by
fee pressure
BY JAMES WATERSON
improvements.
Both KPMG and Deloitte were
judged to have 40 per cent of audits
in the highest category, with a fur-
ther 50 per cent judged to be accept-
able with improvements required.
At the other end of the scale almost
20 per cent of Ernst & Young audits
were considered to require signifi-
cant improvements.
James Chalmers of PwC said: The
AIU recognise we have taken steps to
address the matters raised in the pre-
vious year. We are demonstrating a
positive direction of travel in regards
to audit quality, which remains at
the heart of what we do.
But concerns remain about audi-
tors professional scepticism their
willingness to seek out evidence that
contradicts a companys official line.
Rather than seeking out evidence
to support management the auditor
should look for the most appropriate
evidence and compare it with the
management assertions, George said.
We also have concerns around
audit teams not being specific about
threats and looking at threats and
safeguards in a very generic nature,
he added
Deloitte
n Six sample audits were good, seven audits
were acceptable and one audit needed
significant improvements.
n Firm should ensure quality reviews have a
direct impact on partner remuneration.
n Teams should pay more attention to
planning and performing the audit of revenue.
Ernst & Young
n Six sample audits were good, three audits
were acceptable and two audits needed
n Concerns over partners seeking credit in
appraisals for sales of non-audit services to
entities that they audit.
n Should review guidance on auditing revenue.
KPMG
n Six sample audits were good, seven audits
n Should emphasise obtaining direct
confirmation of the existence and accuracy of
assets and liabilities from third parties.
n Need more dialogue with audit committees.
PricewaterhouseCoopers
n Eight sample audits were good, five audits
n Should report threats to the firms
objectivity from provision of non-audit services
to audit committees.
n Should maintain quality despite competition.
DAVID Cameron yesterday said it
was nonsense that News
International and the Conservative
Party got together in a deal to
exchange press support for policy
influence.
I dont believe in this theory
there was a nod and a wink and
some sort of agreement, he added.
Cameron was also quizzed over
his decision to hire former News of
the World editor Andy Coulson as
his communications director.
Defending the appointment,
Cameron said he received
assurances from Coulson that he
had not known about the phone
hacking. Otherwise, the Prime
Minister said, I would not have
BY LAUREN DAVIDSON
employed him and I would have
fired him. Cameron put forward
similar logic for his decision to
hand Jeremy Hunt responsibility
for the BSkyB bid: If anyone had
told me [he] couldnt do the job, I
wouldnt have given him the job.
He said the move was not some
rushed, botched, political decision.
The inquiry was also read a text
from Rebekah Brooks in which the
ex News Corp executive expressed
her support for Camerons election
and said professionally were in
this together. Yes he Cam!
David Cameron told the Leveson inquiry there was no nod and wink agreement
cityam.com
9
NEWS
FRIDAY 15 JUNE 2012
UNIMPRESSED investors yesterday
drove down the price of shares in
BSkyB and BT after the companies
announced they had agreed to pay a
collective 3.018bn for the right to
broadcast the Premier Leagues games.
At an average 6.53m per match, the
deal will plough an extra 70 per cent
into the Premier Leagues pockets.
Shares in BSkyB, which will pay
2.28m over three years to show 116
football games per season, sank by up
to 8.3 per cent as investors responded
Investors call
foul to Sky and
BTs footy deal
BY LAUREN DAVIDSON
to the broadcasters decision to pay an
extra 40 per cent for the rights.
BT, which has agreed to pay 738m to
show a total of 114 games across the
three year period, saw the value of its
stock drop by up to five per cent.
Liberums Ian Whittaker said BTs
entry is unwelcome for BSkyB as,
unlike Skys previous football counter-
part ESPN, BT has its own platform and
strong brand recognition, and gets first
choice for 18 matches.
But Paul Richards at Numis said, In
our view, BSkyB has retained the very
best selection of rights.
Cameron denies a pact with
News International and Tories
ENTERPRISE social network Yammer
could be snapped up by tech giant
Microsoft in a $1bn deal announced
as soon as today, according to reports.
Set up by former PayPal chief
operating officer David Sacks in
2008, Yammer is used for private
communication within
organisations, unlike public
microblogging tool Twitter or
friends-based social network
Facebook.
Microsofts step into social
networking would bring it into line
with Salesforce.com, which bought
Buddy Media for $745m earlier this
month, and Oracle, which recently
acquired social media data analysis
firms Vitrue and Collective Intellect
for $300m and an undisclosed
amount respectively.
Yammer claims to be used by
200,000 companies worldwide,
including 80 per cent of the Fortune
500. The network counts Deloitte,
Ford, Nationwide and Telefonica O2
among its clients.
Microsoft and Yammer declined to
comment.
Microsoft said
to fancy $1bn
social network
BY LAUREN DAVIDSON
British Sky Broadcasting Group PLC
640
660
680
700
720 p
671.00
14Jun
BT Group PLC
204
206
200
202
208
210
212
214 p
201.70
14Jun
G
E
T
T
Y
Investors send
luxury firm to
naughty step
Y
ESTERDAYS reaction to
Mulberrys slowing growth has
a hint of the schoolroom about
it. An overachiever for the past
couple of years, shareholders greeted
the luxury brands slip with horror
like a teacher who expresses abject
disappointment when their favourite
A* student drops a grade.
In markets as volatile as weve seen
recently, though, the backlash is at
least understandable investors are
desperate for consistency and visibly
rattled when they dont get it.
If profits were falling in Mulberrys
key growth markets emerging mar-
kets and particularly Asia theyd be
right to be worried.
But international revenues over the
year soared by 61 per cent, contribut-
ing significantly to the overall rise of
38 per cent.
The company has been accused of
BOTTOM
LINE
ELIZABETH FOURNIER
FRIDAY 15 JUNE 2012
10
NEWS
cityam.com
More woe at Nokia as stock falls
on plan to cut one in five jobs
LOSS-MAKING Finnish mobile phone
producer Nokia plans to cut another
10,000 jobs globally in its biggest
revamp in recent history, it
announced yesterday, while warning
that the second-quarter loss from its
mobile phone business would be larg-
er than expected.
The cuts, which include the closure
of Nokias only plant in Finland, bring
total planned job cuts at the group
since Stephen Elop took over as chief
executive in 2010 to more than
40,000. Nokia said that it would book
additional restructuring charges of
around 1bn by the end of 2013.
BY CITY A.M. REPORTER
The company, whose cash position is
increasingly scrutinised by investors,
also said restructuring-related cash
outflows would be around 650m in
the remaining three quarters of 2012
and around 600m in 2013.
Nokia stock has crashed more than
70 per cent since it announced in
February 2011 that it was dropping its
own Symbian smartphone operating
software and switching to Microsofts
largely untried Windows Phone sys-
tem.
These changes underline the seri-
ousness of the challenges Nokia is fac-
ing, particularly in light of the
eye-watering competition from Apple
and Samsung, said Ben Wood, head of
research at CCS Insight.
Nokia also said it would sell luxury
phone business Vertu to venture firm
EQT.
Shares in Nokia extended their losses
yesterday, closing 18 per cent down at
16.08 Swedish krona.
WH SMITH, the bookseller and
stationary retailer, saw its share
price rise 2.7 per cent yesterday
after it posted an improvement in
profit margins despite stores sales
continuing to fall.
Like-for-like sales in the first 15
weeks to 9 June dipped three per
cent compared to the same period
last year, although this was a slight
improvement on the five per cent
fall in the first half of the year.
At its high street division, like-
for-like sales fell four per cent
whiles sales at its stores situated
WH Smith keeps books in order
but sales continue to dwindle
BY KASMIRA JEFFORD in airports and train stations were
down by three per cent. The group
said margins improved across both
arms of the business.
Under chief executive Kate
Swanns leadership, WH Smith has
offset flagging sales by trimming
store costs and moving away from
lower margin products like DVDs.
Seymour Pierce analyst Freddie
George, who retained a full year
pre-tax profit forecast of 99.50,
highlighted the strength of
management and strong cash flow.
But other analysts were skeptical,
with Panmure Gordon calling its
business model unsustainable.
Chief executive Kate Swann has slashed costs at the high street firm
MULBERRY lost almost a quarter of its
market value yesterday after the
British luxury handbag maker report-
ed a marked slowdown in recent trad-
ing growth, despite full-year profits
increasing almost two-fold.
While pre-tax profit rose 54 per cent
to 36m in the year to March, broadly
in line with forecasts, the firms
recent trading performance fell sur-
prisingly short of expectations.
Retail sales at stores open at least a
year nudged up three per cent in the
last 10 weeks to 9 June. This contrasts
with a 26 per cent rise in like-for-like
sales during the full-year.
Total revenue for the year grew 38
per cent to 168.5m also falling
short of forecasts with international
sales increasing 61 per cent.
Chairman Godfrey Davis said:
While the current economic condi-
Mulberry bags
profit but sees
shares slump
BY KASMIRA JEFFORD
tions make the short term trading out-
look more challenging in some mar-
kets, we remain confident about
Mulberrys long term future.
The group is stepping up its expan-
sion overseas to exploit more lucrative
luxury markets, with plans to open 15
to 20 international stores this year.
Its shares, which had risen 34 per
cent since the start of the year, closed
down 22.5 per cent to 1,560p yesterday.
Mulberry Group PLC
13Jun 14Jun 8Jun 11 Jun 12Jun
2,220
2,100
2,000
1,900
1,800
1,700
1,600
p
1,570.00
14Jun
Stephen Elop became Nokia chief exec in 2010
Nokia
19
20
21
16
17
18
22
23 SEK
16.08
14Jun
11
IN BRIEF
Computacenter plans cuts value
nShares in Computacenter lost as much
as 16 per cent yesterday after it warned
that its business growth model will
require a significant amount of invest-
ment, including an extra 7m next year in
staff recruitment. Computacenter added
the depreciating euro against the pound
could also cut profit by 3m next year.
But the European IT services provider
said its service revenue is showing sub-
stantial growth.
3i pulls out of Habbo hotel
n3i has become the second sharehold-
er to pull its investment in the
parent company of Habbo Hotel over
allegations the childrens networking
site hosted sexually explicit content.
Britains oldest private equity company
had held a 16 per cent stake in Finnish
internet company Sulake. It made the
move after Balderton Capital dumped
its stake following the allegations by
Channel 4 News. Both firms also
resigned their seat on the board.
LVMH snaps up menswear brand
nFrench luxury conglomerate LVMH
announced yesterday it has acquired
French made-to-measure menswear
brand Arnys for an undisclosed sum.
Retailers have been rushing to tap into
the fast growing menswear sector, with
Burberry planning to launch its first
menswear store later in the fall.
Asian demand for British heritage brands shows no sign of abating
FRIDAY 15 JUNE 2012
cityam.com
NEWS
CARPHONE Warehouse yesterday
reported a 5.5 per cent drop in rev-
enue across its European operations
as fewer customers bought into the
pre-pay mobile phone model.
The handset retailer said European
revenues were 3.3m for the year to 31
March, down from 3.5m, as up to 40
per cent fewer customers opted for
pay as you go phones, influenced by
the lack of well-priced deals.
Carphone Warehouse said it expects
the consumer environment in Europe
to remain challenging in the year
ahead along with the continued
effect of regulation and competition
in the mobile market.
But the group posted a 3.6 per cent
rise in pre-tax profits to 58.3m, boost-
ed significantly to 762.2m including
the 800m disposal of Best Buy Mobile
in the US last year.
Revenue down
at Carphone on
a weak Europe
BY LAUREN DAVIDSON
The companys failed BestBuy elec-
tronics joint venture in the UK set the
company back 193.4m.
Looking ahead, Carphone
Warehouse which is set to launch in
China at the end of this month said
it will continue to roll out its Wireless
World stores, converting the majority
of UK shops in the next few years.
Its shares climbed 7.8 per cent to
140p in yesterdays trading.
A tale of two high
streets split by rents
THE GAP between shop rents in the
UKs smartest and more modest
locations is wider than ever and is
likely to become more marked as
leases come up for renewal, research
exclusive to City A.M. shows.
The number of shopping areas in
London that have reached or
exceeded rental levels seen at the
height of the bull cycle in 2007 has
soared to 42 per cent, according to
property firm Jones Lang LaSalle.
While rents on Londons priciest
streets such as New Bond street have
soared on the back of demand from
BY KASMIRA JEFFORD
wealthy overseas shoppers, 42 per
cent of retail areas in London still
remain below 2007 levels.
However, this contrasts with 73
per cent across the UK overall, with
only 11 per cent of stores seeing
rents reach pre-crash levels.
With 25 per cent of leases expiring
in 2012 to 2013, JLL expects to see a
further rift in rent prices.
Guy Grainger, head of UK Retail
said: Some locations will inevitably
continue to slide against the
backdrop of challenging market
conditions, but retail locations with
a raison detre will continue to out-
perform.
trying too hard to emulate Burberry,
which makes 12 per cent of its rev-
enues in China alone, but done well
that would be no bad thing Asian
demand for British heritage brands
shows no sign of abating and store
launches last year in Korea, Singapore,
Thailand and Taiwan show that even
the core of that market is spreading.
WH Smith, meanwhile, won investor
approval despite yet another fall in
sales the struggling pupil who gets a
pat on the head just for turning up.
The worst thing Mulberry could do
now would be to take the knockback as
a sign to lower its expectations.
It may have had a bad term, but its
far from being bottom of the class.
Carphone Warehouse Group PLC
142
140
138
136
134
132
130
128
p 140.00
14Jun
All gures are for zone A rents and compared to 2007
OLD BOND
STREET
825 +38%
NEW BOND
STREET
950 +53%
OXFORD
STREET 725 +53%
LONDON RETAIL RENTS BOUNCE BACK
of London rents
are at a new
peak level...
42%
Further
growth
expected as
of UK high street
leases are due for
renewal by the end of 25% 2013
...compared
to only
11%
of national
rents
S
O
U
R
C
E
:

J
O
N
E
S

L
A
N
G

L
A
S
A
L
L
E
G
E
T
T
Y
Shell extends offer deadline to
try and win over Cove investors
ROYAL Dutch Shell has given itself
more time to decide the next move
in its battle to buy Cove Energy,
extending the acceptance deadline
on its 1.12bn bid as it vies with
Thailands PTT for an entry into
East Africa's big new offshore gas
play.
Shell said yesterday it was
extending the deadline for Cove
shareholders to accept its 220p per
share cash offer by another two
weeks until 27 June after receiving
valid acceptances for just 4.8 per
BY HARRY BANKS
cent of the shares by the time of
the last offer period closing on
Wednesday.
Analysts still believe that Shell
will increase its bid to trump PTTs
240p per share offer worth 1.22bn.
Shares in Cove, which have
already been trading well above
PTTs offer, closed up 0.4 per cent at
265.1p yesterday, valuing the
business at around 1.3bn.
I think Shell will come back,
Investec analyst Stuart Joyner said.
It could possibly pay up to 300p
per share, possibly more, given the
recent discovery.
Coves partner in Mozambique,
US firm Anadarko, earlier this week
announced a further major
offshore gas find there.
Analysts at Mirabaud Securities
said Shells move to extend the
offer deadline reinforced
suspicions that the company was
working on an improved offer.
East Africa is set to become one
of the worlds largest gas exporters
supplying energy-hungry Asia, after
a string of major discoveries across
Mozambique and Tanzania, which
has attracted the interest of major
oil firms.
IN BRIEF
Statoil finds gas off Tanzania
n Norwegian oil firm Statoil said yesterday
it had discovered a large gas deposit off
Tanzania. Statoil and ExxonMobil found 3
trillion cubic feet of gas in the Lavani well
2,400 metres under the sea. The discovery
confirms Statoil's recent track record for
solid upstream success after it has made big
finds in the mature areas of the North Sea,
the Arctic Barents sea, Brazil and Tanzania.
Halma ups dividend as profits rise
n Halmas full-year profit rose 15 per
cent, it said yesterday, helped by a strong
showing at its health and industrial safety
businesses, prompting the British sensor
maker to raise its dividend. For the year
ended 31 March, pre-tax profit from
continuing operations rose to 120.5m
from 104.6m last year. Revenue at the
company rose 12 per cent to 579.9m.
Shell, led by Peter Voser, hopes to gain access to Coves lucrative Mozambique oil
FRIDAY 15 JUNE 2012
12
NEWS
cityam.com
CHARLES Stanley yesterday warned
over the impact of the long-running
Eurozone crisis as it posted a slump
in profits of more than a third.
The broker and investment manag-
er has been hit by re-doubled
uncertainty in the single currency
area in the second half of the year,
with clients sitting on their cash
until the future of Greece and other
debt-stricken nations becomes clear.
Continuing uncertainty is the big
issue. Some kind of resolution, even
if it is bad, will help people in terms
of making decisions for the future,
finance director James Rawlingson
told City A.M.
The Eurozone is a victory of politi-
cal will over economic sense. It
always has been and continues to be,
which makes it hard to predict.
The firms reported profit before
tax dived 37 per cent to 8.5m for the
year to 31 March but the total divi-
dend was raised five per cent to
11.25p.
Revenue fell five per cent to
119.6m and chairman Sir David
Howard lashed out after Charles
Stanley took another big hit from the
Financial Services Compensation
Charles Stanley
profits dive as
Euro crisis bites
BY PETER EDWARDS
Scheme levy. The firm was charged
1.6m, on top of 2.6m for 2010-11.
Howard said intense regulatory
pressure on the sector placed a
heavy burden on resources.
But there is little evidence that the
increasingly intrusive and burden-
some micro-management of invest-
ment companies has been successful
in staving off some egregious exam-
ples of fraud and mismanagement,
the cost of which is spread across the
shareholders in financial service com-
panies, he added.
Charles Stanleys funds under man-
agement and administration rose six
per cent to 15.4bn after a good
increase in business from existing
customers. Fee income rose eight per
cent to 67.4m.
Unilever set to axe 800 jobs
and close four British plants
ABOUT 800 British jobs will be lost
after consumer goods giant Unilever
said it would close four plants.
The firm, which produces brands
including PG Tips tea, Ben & Jerrys
ice-cream and Brylcreem, will move
some jobs to India and to its historic
home of Port Sunlight on
Merseyside.
It has announced plans to close its
hair care plant in Swansea and a
small distribution site at Bridgend,
South Wales, after it bought US
group Alberto Culver last year. The
BY PETER EDWARDS
former Sara Lee plant in Slough,
which makes Radox and other bath
and shower products, will also be
shut.
It is also closing its Ewloe IT site,
close to Port Sunlight but just across
the border in North Wales, with jobs
transferring to Port Sunlight and to
Bangalore in India.
The changes, a blow to the
coalitions hopes of a
manufacturing-led recovery, will
lead to 500 job cuts from its 7,500-
strong workforce in Britain.
There are likely to be a further 300
job cuts at contractors and other
third-party workers. The plans are
subject to review.
Unilever expects to create about
150 jobs at Port Sunlight, where Lord
Lever first started producing soaps
and detergents more than 100 years
ago. It is proposing to invest 40m in
high-tech manufacturing there.
Amanda Sourry, chairman of
Unilever UK and Ireland, said
businesses face very tough
economic conditions in Europe.
While Unilever is growing well in
the UK and globally, it will always be
necessary to make changes which
raise our game.
TESCO yesterday snapped up We7, the London-based digital music business, for
10.8m. Former Genesis frontman Peter Gabriel, who co-founded the company
alongside Steve Purdham in 2007, is set to pocket 2m from the deal. The business has
yet to make a profit, but Purdham said earlier this year the milestone is not far away.
GENESIS SINGER CREATES DEAL WITH TESCO
Charles Stanley Group PLC
265.00
262.50
260.00
257.50
255.00
252.50
250.00
247.50
p
242.96
14Jun
STRONG growth in Singapore and
South Africa has helped spread
betting firm IG Group to increase
revenue by more than a sixth.
The FTSE 250 firm, which allows
retail investors to bet on financial
derivatives, said it expects to post a
17 per cent rise in net trading
revenue to 366.8m for the year to
31 May.
Sales rose fastest in the rest of
the world section, climbing 43 per
cent to 28.4m, driven by improved
revenue per client in Singapore
and a higher number of active
IG benefits from Singapore
growth as sales rise to 367m
BY PETER EDWARDS clients in South Africa.
It also posted solid growth in the
core territory of Britain, where
revenue rose 15 per cent to
191.8m. Sales in Europe rose 26
per cent to 72.2m.
IG, which will report full year
results on 17 July, said the strong
first half to the year will make for
challenging comparatives in future
but that it remains well
positioned for further growth in
the coming year.
The firm has picked up clients
from MF Global, the US broker
which collapsed in October last
year.
FRIDAY 15 JUNE 2012
13
NEWS
cityam.com
FORMER members of Dire Straits are
opening a charity concert in support
of the Sarah Greene Breakthrough
Tribute at the O2 Empire at
Shepherd's Bush next Thursday.
Three of the seven band members
have played, recorded or worked with
many artists such as Eric Clapton,
Bob Dylan, Cher, James Morrison and
Enrique Iglesias. The band is now
called Straits. The money raised will
be used to find a cure for triple
negative breast cancer and will be
added to the 1.25m already raised.
Ticket prices range from 25- 70. 24
Hour Ticket Hotline: Call 0844 477
2000. VIP and Hospitality Available,
Tickets can be purchased online at:
www.ticketweb.co.uk
Straits lead the
way in cancer gig
G
E
T
T
Y
A
HEALTHY crowd gathered at
the Phillips de Pury auction
house last month to support
the efforts of the Lebedevs in
raising funds for their Journalism
Foundation, an institution designed
to promote ethical journalism
around the globe.
Given the sway that Foundation
chief and former Independent editor
Simon Kelner has in the media and
show business world there was no sur-
prise to find countless celebrities in
attendance.
Hugh Grant, Jemima Khan, Jerry
Hall, Gary Lineker, Claudia
Winkleman, John Snow and Richard
Bacon all supported the event with
their presence and no doubt
their generosity in bidding for
the various auction lots.
More surprising to some, how-
ever, was the presence of Lord
Bell, the chairman of Chime
Communications.
For Lord Bell has been at
loggerheads with the
Independent, one of
the Lebedev newspa-
How Lord Bell crashed Indie ball
per titles, since last December
when the newspaper pub-
lished an investigation
about his firm that entailed
an undercover sting opera-
tion.
Lord Bell has complained
to the Press Compliants
Commission (PCC) about
Lord Bell (above) was a
surprise guest at a Lebedev
Foundation dinner
Got A Story? Email
thecapitalist@cityam.com
14
cityam.com
cityam.com/the-capitalist
THECAPITALIST
FORMER head of the Football
Task Force David Mellor was
bemoaning the cost of his season ticket
at Chelsea yesterday. Speaking on the
radio, Mellor said he hoped some of the
extra money coming into the Premier
League from broadcasting
could be used to reduce the
price of his 5,000 a year
ticket. Another option for
the poor man might be to
move from the posh seats
to behind the goal in
the Matthew Harding
stand. Cost: 750.
FRIDAY 15 JUNE 2012
*Selected items only.
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F
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the articles, describing the sting opera-
tion as in breach of its code.
Lord Bell says he was invited to the
event by Caroline Michel, the head of
the literary and talent agency PFD and
felt there was no reason to turn the
invite down.
Just because were having a differ-
ence of opinion isnt a reason to be bad
mannered or discourteous and Im not
somebody to attack anybody who has
had a relationship with the
Independent.
I am amused that Kelner set up this
foundation at a time when his former
paper has, in my view, behaved in
breach of the PCC code.
Asked if he took the opportunity at
the event to speak to Chris Blackhurst,
the current editor of the Independent,
he said: Hes not somebody I choose
to remember.
Blackhurst said Lord Bells presence
at the dinner was made known to him
but that he did not get a chance to
speak to him.
We have no personal axe to grind
against Lord Bell or anybody at Bell
Pottinger, said Blackhurst. It was
good to see him supporting a cause we
all hold dear to our hearts.
The event itself helped the not for
profit organisation to raise around
150,00 for its activities, which include
supporting journalists in Tunisia.
From left: Hugh
Grant, Gary Lineker
and Jemima Khan
were at the auction
Credit subject to acceptance. Credit is provided by external finance companies as determined by DFS. 4 years interest free credit from date of order. Delivery charges apply. After event prices apply from 11.06.12 - see instore or online for details. Headrest optional extra. Accent
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FOR INDEPENDENT ADVICE, TALK TO US
RAJ SINGHAL
LONDON CHAMBER
OF COMMERCE
CONSTANCE
BRIGHOUSE
KROLL
Before people started working
sooner and saved earlier. But
now we start work later, after uni, it takes
more years until we start saving. It would
be helpful to have more information.
MARIANA
SANTOS
WWF
CITYVIEWS
THE AVERAGE 50-year-old Briton
risks slipping into poverty in old
age unless they double their
pension pot, research out today
claims.
A study by insurer MetLife
shows that a typical 50-year-old
has saved 54,300 for retirement.
But to get to a yearly income
above the poverty line of 14,400
including state pension
payments, the average saver in
this age bracket needs to squirrel
away more than 122,800 by the
time they retire, meaning they
must save another 68,600,
MetLife warns.
50-year-olds need to double
pension pots to avoid poverty
BY MARION DAKERS
They accept that they will
have to retire later than
anticipated, but are still
uncertain about exactly how
young they will be able to do so,
said UK managing director
Dominic Grinstead. Currently
the average 50-year-old is a long
way off the pension required to
be financially comfortable after
work.
The 50-year-olds surveyed
intend to retire at an average age
of 61.5, having paid off their
mortgages at the age of 58.5.
More than one in four of those
surveyed plan to use the state
pension as their main source of
income in old age.
FRIDAY 15 JUNE 2012
16
NEWS
cityam.com
THEFORUM
cityam.com/forum

JOIN THE DEBATE PAGES 24-25
CAR PRODUCTION in Britain hit an
eight-year high last month, industry
figures revealed yesterday, as boom-
ing exports boosted the industry.
Automotive plants manufactured
141,146 cars in May, which is the
highest monthly level since 2004
according to data from the Society
of Motor Manufacturers and Traders
(SMMT).
That represents growth of 42.2 per
cent compared with the same
month last year, and brings year-to-
date volumes up 17.3 per cent on the
same period of 2011.
The vast majority 120,120, or 82.9
per cent of those were manufac-
tured for export, although domestic
production also rose 25.8 per cent to
21,026.
The growth was driven by a siz-
able recovery against volumes ham-
pered by last years Japanese
tsunami, said SMMT chief execu-
tive Paul Everitt.
This boost, coupled with robust
A post-tsunami
boost drives up
cars made in UK
BY WILLIAM ORR AND
TIM WALLACE
year-to-date results demonstrates the
strength of UK automotive manufac-
turing and shows why it continues
to attract high levels of international
investment.
UK engine manufacturing also
rose, growing 13.4 per cent, as year-
to-date volumes topped the 1m mark
and is now running 40,000 units
ahead of output in the same period
of last year.
However, commercial vehicle out-
put remains subdued with only
9,445 vehicles produced. That is
down 7.4 per cent on the month,
driven by falling domestic demand.
British car production is accelerating
2007 08 09 10 11 2012
600
800
1,000
1,200
1,400
1,600
1,800 000s, Annual figures
Export
Total
THE MERGER of the Competition
Commission and parts of the
Office for Fair Trading (OFT) into
the new Competition and Markets
Authority will be managed by
senior OFT official Clive Maxwell,
the government said yesterday.
The career civil servant has
spent the last three years at the
regulator, where he worked on
deals including the News
Corporation and BSkyB merger.
Before that, he spent 17 years at
the Treasury.
Business secretary Vince Cable
welcomed Maxwell to the 135,300
a year job, explaining he has been
Clive Maxwell to take top job at
the new competition regulator
BY LISA MORAVEC AND
TIM WALLACE
instrumental in forging strong
relations with the government and
the Competition Commission on
the development of the new
competition
regime.
Maxwell
replaced OFT
boss John
Fingleton, who
announced his
intention to step
down in
February,
after
seven
years
in the
role.
Clive Maxwell is a very experienced civil servant
These views are those of the individuals above andnot necessarily those of their company
I am denitely worried about
it. Raising the pension age
means that it is not going to be a comfort-
able life. Before you knew when you
would get your pension, now it is unclear.
I should be concerned but I

have not done anything about
it. My long-termplan is not to be a pen-
sioner in this country but to live in another
country, and to reduce the cost of living.
ARE YOU WORRIED

ABOUT YOUR
PENSION?
Interviews by Lisa Moravec
HUNDREDS of thousands more
tourists came to Britain in the three
months to April 2012 than 2011,
despite the Royal Wedding in Easter
2011, official data showed yesterday.
Overseas residents made 6.99m
visits to the UK, up five per cent
from 6.684m a year ago.
The vast majority came from
other European countries 5.49m,
up six per cent from 5.198m in the
three months to April 2011.
Another 670,000 came from
North America, up two per cent on
the same period last year.
The jump in annual numbers was
driven by a four per cent rise in both
business travellers, to 7.3m, and
those visiting friends and family, to
nine million. Holiday growth was
slower, at two per cent, to 12.2m.
Meanwhile, British residents
made 11.84m visits abroad in the
three months to April, up two per
cent from 11.566m in 2011.
European destinations accounted
for 8.62m of those, up one per cent
from 8.578m last year, while 780,000
visits were made to North America,
up four per cent from 749,000.
Overseas visitors spent 3.53bn in
the UK in the three month period,
while Brits spent 6.68bn abroad.
BY LINE IN HERE
THE AVERAGE UK income fell at the
fastest rate since 1981 last year as
inflation eroded real earnings,
according to statistics out yesterday.
The median income fell 3.1 per cent
to 419 a week after inflation and
before housing costs, according to the
Department of Work and Pensions.
The drop in 2010-11 compares with
slow growth in the two previous
years, when the economy was ham-
pered by the global financial crisis.
High earners appeared to have suf-
fered a starker five per cent drop in
income, though the government
claimed this is partly due to the intro-
duction of the 50p tax rate in April
2010, which prompted some of the
top 20 per cent of earners to shift
income into the previous year.
This drop at the top means that rel-
ative child poverty has fallen to 18 per
cent, or 2.3m children, as the figures
are based on those who live on less
than 60 per cent of the median
income.
But the government fell short of its
target to halve relative child poverty
between 1999 and 2011 by around
BY MARION DAKERS
600,000 children, it said in its annual
Households Below Average Income
report.
In London, the citys crippling rental
prices mean that almost 35 per cent of
people in inner London lived on a rela-
tively low income after housing costs
in 2010-11.
Around 18 per cent of central
Londoners live on less than 60 per cent
of the median income before housing
costs, roughly in line with the English
average.
The Institute of Fiscal Studies said
the real earnings are likely to fall fur-
ther. Looking ahead, our forecasts
suggest that median incomes will
have fallen further in 2011-12 and
median incomes will be no higher in
2015-16 than they were in 2002-03,
said research economist Jonathan
Cribb.
Real wages may be falling, but con-
tract rates in some parts of the City are
soaring, according to recruiter Robert
Walters. Accountants doing contract
work enjoyed a 7.8 per cent hike in
rates last year, compared to a rise of
just 0.8 per cent for their salaried
counterparts. Risk and quant contrac-
tors got a 13.8 per cent rate rise.
FRIDAY 15 JUNE 2012
17
NEWS
cityam.com
UK real incomes
fall at quickest
rate in 30 years
UK and visitor spending
2011
2012
UK spending abroad 6.68bn
3.53bn
6.30 bn
3.42 bn
Visitor spending in UK
UK spending abroad
Visitor spending in UK
BUSINESS TRIPS BOOST TRAVEL TO BRITAIN
Visits to UK
from North America
670,000
up 2% from
654,000 in 2011
Visits to UK
from Europe
5.49m
up 6% from
5.198m in 2011
Visits to North
America from UK
780,000
up 4% from
749,000 in 2011
Visits to Europe
from UK
8.62m
up 1% from
8.578m in 2011
Britain booms as popular tourist destination
DESIGN and engineering
group WS Atkins is looking to
expand further abroad to off-
set a slide in UK revenues.
Atkins, whose projects
include the Olympic Games
site and widening the M25,
reported a 1.1 per cent fall in
full year pre-tax profits to
101.6m yesterday, excluding a
gain from changes to its pen-
sion pot. UK revenues slid 7.2
per cent to 859.9m meaning
the firms core market generat-
ed less than half of its turnover.
Overall revenues rose 9.4 per
cent to 1.7bn, helped by the
acquisition of US engineer PBSJ
in October 2010.
Chief executive Uwe Krueger
told City A.M. the success of the
PBSJ deal could pave the way
for further acquisitions abroad.
Getting this acquisition
Atkins eyes overseas
growth as UK wavers
BY MARION DAKERS
Chief exec Uwe Krueger is optimistic about global growth
WS Atkins PLC
660
670
680
690
700
710 p
696.50
14Jun
ANALYST VIEWS
Atkins nals are in
line, which is unsurprising. US
revenues look disappointing to
us, only partially offset by
strong growth in the smaller
Middle East and energy
divisions, while UK is in line.
HOW WELL IS ATKINS

PERFORMING?
by Marion Dakers
WILL WALLIS NUMIS

FRIDAY 15 JUNE 2012
18
NEWS
cityam.com
right in the US was a litmus test for us,
to see if we could do large scale deals
on the M&A side, and I think we have
done this. The focus has been on bolt-
on acquisitions, but we cannot rule
out the possibility of a large deal if the
opportunity arises.
In the year ahead, Atkins said it has
60 per cent of its expected work in
hand, up five percentage points from a
year ago, and hopes to fill around
1,000 vacancies in the UK despite the
tough trading conditions.
Kreuger added that he is looking
forward to hosting clients there and
showcasing our work at this sum-
mers Games.
Full year results are
slightly ahead. Net cash in line.
Headcount up and work-in
hand up. Dr Krueger has set
out his stall, and seeks to
reduce exposure to the UK from around
50pc to less than 25pc.
Atkins delivered a
solid set of prelims, slightly
ahead of our expectations.
With the UK and US having sta-
bilised...and 60pc of forecast
revenue secured, we have increased con-
dence in our 2013 forecasts.
JOE BRENT LIBERUM
CHRIS BAMBERRY PEEL HUNT

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9am to 7pm Monday to Friday. No appointment necessary.

IN BRIEF
Wincanton looks to strong future
nHaulier Wincanton said yesterday its UK
and Ireland markets were performing well
both in securing existing contracts and
winning new business and that it expected
a strong future despite challenging market
conditions. April to March underlying profit
fell to 28.8m from 30m a year ago.
Revenue dropped nine per cent to 1.2bn.
Balfour wins 300m road contract
nBalfour Beatty said yesterday that a joint
venture it is leading had won a 300m
contract to maintain roads in the north
west of the UK. The five-year deal, in
partnership with consultants Mott
MacDonald, was awarded by the Highways
Agency and covers roads in Manchester,
Cheshire, Merseyside and Lancaster.
Filtrona buys cleaning materials firm
nPlastics, fibre and foam supplier Filtrona
has paid $43.5m (28m) for Lymtech
Scientific, a manufacturer and distributor of
speciality wiping materials for the cleaning
industry. The firm said yesterday the
purchase was made on a debt-free basis,
and funded from existing facilities. In 2011,
Lymtech made profits before tax of $5.7m.
ELECTRONIC parts distributor
Premier Farnell posted a slip in
first-quarter profit yesterday as
slowing sales in North America
hurt progress made across Asia and
in choppy European markets.
Premier Farnell, which said good-
bye to outgoing chief executive
Harriet Green earlier this week
after she left to join tour operator
Thomas Cook next month, said
first-quarter adjusted pre-tax profit
slipped 13 per cent to 20.9m on
sales down five per cent at 241m.
The group, which sells products
such as batteries, computer parts
and security products to engineers
in over 100 countries, said sales in
both Europe and Asia Pacific were
up by 2.1 and 8.5 per cent respec-
tively from the fourth quarter but
North America fell 2.7 per cent.
Sales in Europe, its biggest mar-
ket, fell 7.3 per cent year-on-year
hurt by Eurozone turbulence.
Global quarterly sales per day
have been maintained at a stable
level since the decline in the global
electronics and technology markets
New Premier
Farnell chief in
cautious mood
BY HARRY BANKS
that impacted us in June last year,
said new chief executive Laurence
Bain.
As comparators become easier
from the middle of the year and
with the benefit of a 53rd week we
expect growth to return in the sec-
ond half. However as we have limit-
ed forward visibility and in light of
the economic outlook we remain
cautious, he added.
In March the firm posted a slip in
profit for its 2011 to 2012 fiscal year,
missing analyst expectations.
Shares in Premier Farnell rose by
3.7 per cent yesterday to close at
158.8p, valuing the company at
578m.
Premier Farnell PLC
156
154
152
158
160
162
164
166 p
158.80
14Jun
FRIDAY 15 JUNE 2012
20
NEWS
cityam.com
LONDON 2012 IMAGE OF THE WEEK
BRITISH Airways has unveiled a giant image of Jessica
Ennis, the heptathlete, on the Heathrow flightpath. It will
welcome visitors to Britain for the next five weeks.
Between now and the start of the Olympics, City A.M. is publishing its
Olympic Image of the Week. If you have a shot you think our readers will
like, please email pictures@cityam.com with IOW2012 in the subject line.
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Jeff Currie
Goldman Sachs
2011 Analyst
of the Year
Ivan Gazidis
Arsenal
2010 Rising Star
Amanda MacKenzie
Aviva
2010 Marketing
Campaign of the Year
Michael Hintze
CQS
2011 Trader
of the Year
David Cheyne
Linklaters
2011 Lawyer
of the Year
Nominate yourself, a colleague or your company
for City A.M.s third annual Business Awards.
Visit www.cityamawards.com
Deadline for nominations 12 July
Awards night Wednesday 17 October
General enquires: 020 8267 4043 | jo.pead@cityamawards.com
Sponsorship enquires: 020 3201 8940 | harry.owen@cityam.com
Are you one of the Citys
personalities of the year?
in association with
champagne reception sponsor
category sponsors venue sponsor
FRIDAY 15 JUNE 2012
22
U
S stocks jumped yesterday
following the news major
central banks are preparing
coordinated action if the
results of Greek elections this
weekend lead to turmoil in financial
markets.
Energy was the top-gaining S&P
sector, rising 1.7 per cent, helped by a
two per cent rise in US crude oil
prices. Chevron was a top boost to
the Dow, up 1.8 per cent to $101.92.
Some of the initial pop in prices
faded into the close, however, with
Wall Street still seen subject to sharp
swings.
The Dow hit an intraday high up
1.6 per cent but closed up 1.2 per
cent to 12,651.76.
The Standard & Poors 500 Index
rose 1.08 per cent, to 1,329.10. The
Nasdaq Composite Index added 0.63
per cent, to 2,836.33.
H&M Hennes & Mauritz AB
222
220
218
216
214
212
SEK
8Jun 11Jun 13Jun 14Jun 12Jun
220.00
14 Jun
H&M
Liberum rates the fashion chain sell with a target price of SEK170. The
broker thinks H&M will struggle to leverage costs and maintain its gross
margins in a tough time for European clothes retailers. But it expects like for
like sales to rise 1.3 per cent at the firms quarterly results on Wednesday.
DASHBOARD CITY
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B
RITISH blue chips dipped
yesterday, edging down
towards recent six-month
lows as a surge in Spanish
bond yields to record highs cast the
spotlight back onto the problems
in top trading partner the
Eurozone.
Uncertainty ahead of Greek elec-
tions at the weekend which may
decide whether the country stays in
the currency or opts for an exit with
unpredictable contagion risks for
the rest of Europe kept investors
on edge and on the sidelines.
The FTSE 100 closed down 0.3 per
cent, or 16.76 points, at 5,467.05,
wiping out its gains from earlier in
the week, and just over 200 points
above its 1 June trough around
5,230, which was its lowest since
late November 2011.
The truth lies in the performance
of the peripheral European bond
yields, said Jeremy Batstone-Carr,
strategist at Charles Stanley.
The UK wont escape unscathed
because we too have a very high
debt to GDP ratio.
Heavyweight miners led the
retreat yesterday, as investors fretted
about the impact of the crisis on
global economic growth and thus
demand for metals.
Glencore and Xstrata fell four and
two per cent respectively, weighed
down by concerns about whether
they will be able to pull off a
planned merger.
Also among the top fallers was
hedge fund manager Man Group,
which fell 3.6 percent ahead of its
last day in the FTSE on Friday, and
BSkyB, which dropped 3.2 per cent.
The satellite broadcaster paid more
than expected to broadcast most of
the English Premier League soccer
matches in a new three-year deal.
Shares in telecoms operator BT,
which won the right to show some
of the games and competition from
which was seen as the reason for the
higher price tag, fell 3.3 per cent.
LONDONREPORT
Spanish worry
keeps FTSE low
NEW YORKREPORT
Central banks
pledge aids US
TUI AG
Deutsche Bank has raised its rating on the travel group from hold to
buy and has kept its target price at 6.60. The broker thinks TUIs share
price gives almost no value to the business aside from its stake in TUI
Travel, even though the firm has negligible debt following recent disposals.
CAIRN ENERGY
Nomura rates the energy firm buy with a new target price of 382p. The
broker is upbeat about the firms planned purchase of Nautical, but has cut
its target due to falling value at Cairn India. Nomura thinks the Nautical deal
helps establish Cairn as a proper explorer rather than a holding company.
BESTof theBROKERS
TUI AG
4.35
4.30
4.25
4.20
4.15
4.10

4.20
14 Jun
Cairn Energy PLC
305
300
295
290
285
280
p
280.00
14 Jun
iCon Infrastructure
Iain Macleod has been appointed
as a partner at the investment
firm, effective July 2012. He joins
iCons private institutional
European infrastructure team
from Deutsche Bank, where he
served as head of transportation
and infrastructure for Europe,
Middle East and Africa, and head
of mergers and acquisitions for
Asia.
International Standard Asset Management
Darren Upton has joined the alternative investment
management firm as its head of research, and will report to
Alex Greyserman, chief investment officer. He will lead its
development of new systems and markets. Upton most
recently worked at Man Group as head of research
methodology. He holds a PhD in mathematics from the
University of Cambridge.
Renaissance Capital
The emerging markets investment bank has made four
senior hires to its equity products groups in London, New
York and Moscow. In London, Aleksander Diklich joins as
managing director and head of international derivatives
from Citigroup, where he was director of European equity
derivatives. Diklich has previously worked in equity
derivatives at Deutsche Bank.
KPMG
KPMG Forensic has appointed Rachel Sexton as a partner in
its UK financial services practice. She is a specialist in
leading large-scale anti-money laundering, economic
sanctions and other financial crime investigations. Sexton
joins from Deloitte, in Switzerland, where she has worked
for the previous four years on complex regulatory enquiries
and investigations.
Troika Dialog
The investment company, part of Sberbank, has appointed
Dmitri Casvigny as managing director and head of
industrials in its investment banking division. He joins from
Credit Suisse, where he was most recently head of mergers
and acquisitions for Russia. Casvigny has also held positions
at Bear Stearns Dresdner Kleinwort Wasserstein, and BNP
Paribas.
Carmignac Gestion
David Park has been appointed co-manager of the
Carmignac Emerging Discovery fund, part of the emerging
equities team at the asset management firm. He will work
alongside Xavier Hovasse. Park has worked at Carmignac
for five years, and previously held roles at Hyundai
Securities.
Actis
The emerging markets private equity firm has appointed
Mark Ransford as its director focusing on West Africa
opportunities. He was most recently a partner at Kingdom
Zephr, and has also worked on European transactions as a
principal at Apax Partners.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
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I
N WESTERN Texas, theyre
building a clock in a mountain
designed to last for 10,000 years.
The project, backed by Amazon
chief executive Jeff Bezos and
many other tech luminaries, will
take decades to complete and is the
centrepiece of a movement to
encourage more long-term thinking.
The foundation behind it makes a
point of writing the year as 02012 as
a reminder of how much future
there is ahead of us.
The urge to think longer term is
fashionable business advice. The
business secretary Vince Cable
wants to incentivise long-term
thinking in companies through
changing the rules on pay votes for
listed companies. But hes been
W
ITH Greece going to the
polls on Sunday, the
Eurozone crisis
continues to dominate.
While we are in
uncharted territory there is no
legal or jurisdictional framework
that allows for a euro collapse, or
exit from the currency by one or
more countries businesses can
assume three scenarios to set plans
against: a stabilising of the existing
euro; a contracted euro; or a total
disintegration.
While the first scenario will have
most businesses wiping their collec-
tive brow in relief, the latter two
pose significant challenges, with a
total disintegration requiring the
same adjustments as a partial col-
lapse, only on a significantly larger
and riskier scale.
In looking to respond to these sce-
narios, a euro crunch project for
want of a better name should focus
on:
1. Financial exposure and mitigat-
ing financial loss: a legal and con-
tractual/documentation review
Book at cityjet.com *Limited availability. Prices include taxes and charges, correct as of 12/06/12 but are subject to change at any time. Departing from London City Airport to Amsterdam for travel between 03/09/12 - 22/10/12 with last return by 25/10/12. Sales valid until 19/06/12. For full terms and
LONDON CITY AIRPO
WAY TO EUROPE. FRO
cityam.com/forum
Stakes for everyone
will grow exponentially
with every country that
leaves the euro
In association with
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.
24
FRIDAY 15 JUNE 2012
CHRIS RENARDSON
Businesses should be planning for
the scenario of a Eurozone collapse
(in-country and pan-Europe); an
assessment of creditors and suppli-
ers; and a review of in-country new
business initiatives.
2. Systems reviews to support
transactions in the new currency:
rebooking for treasury purposes;
invoicing; payments; inventory
management; hedging; and foreign
exchange exposure.
3. A run-book (set of defined proce-
dures) for an event response: core
operational activities and risk man-
agement; incident management;
risk mitigation; communications;
and legal.
The project should also draw up a
roadmap with critical paths for
remediation and risk mitigation.
A businesss appetite for risk and
financial loss will ultimately deter-
mine its response. But success under
any scenario will depend in no small
part on the quality of the planning
before the event.
SCENARIO 1: A STABILISED EXISTING
EURO
Governments regain popular support for
austerity measures, stabilising the
Eurozone.
Clearly this is the scenario most
organisations will favour, as it pro-
vides the best chance for economic
growth and substantially less turbu-
lence for businesses to navigate.
SCENARIO 2: A CONTRACTED EURO
One or more countries are compelled to
leave the euro as a result of their elec-
torates rejection of austerity measures, a
further deterioration in their economies,
escalating interest rates and a lack of
market confidence.
To succeed through this scenario,
businesses must be prepared for a
world where bank defaults become
more likely. Companies need to pre-
pare for this risk.
As a result, preparation should
include: an on-going review of cred-
it limits, taking into account any
downgrades; repatriation of cash to
a safe haven; adoption of cash
sweeping, pooling and zero balanc-
ing (if not already performed); and
the introduction of netting agree-
ments (offsetting profits and losses
on different contracts or in different
currencies), to reduce credit expo-
sure.
Businesses may also want to think
about spreading exposure across
several banks, rather than keeping
all their eggs in one basket.
SCENARIO 3: TOTAL DISINTEGRATION
Failure to find an effective solution, whole-
sale rejection of austerity measures and/or
the bailout of weaker countries by
stronger countries leads to a collapse of
the euro.
This is accompanied by a return to
all members currencies at their
appropriate value. This outcome,
while similar to a contracted euro,
would be on a wholly different scale
and carry much more risk. Plans
should be drawn up with the same
approach, outcomes factored by way
of a similar process, but businesses
should be under no misapprehen-
sion, the stakes for everyone will
grow exponentially with every coun-
try that leaves the euro.
Ultimately a view has to be taken
on the amount of investment need-
ed versus potential financial loss of
not doing the work and the event
occurring. But while business lead-
ers are hoping for the best, they
should also be planning for the
worst.
Chris Renardson is head of program manage-
ment consulting, capital markets, at Cognizant.
criticised for his suggestions too,
and this is one received idea that
deserves to be taken with a grain of
salt.
The 10,000 year clock is a
wonderfully ambitious, inspiring
project. Theres a great deal to be
said for people looking up from the
narrow horizons of the here and
now to contemplate what we might
be able to achieve as a species in the
long run. But at the same time, its
important to remember how murky
events become the further ahead we
look. Huge historic turning points,
like the launch of Sputnik, the
collapse of the Soviet Union, 9/11
and the Arab Spring, take even the
experts by surprise. One reason
Bezos is building this clock inside a
mountain is to try and make a
structure, rather like a nuclear
waste store, that can survive all
possible changes in the world
around it. Planning for the long
term means making something
massively unwieldy; virtues like
nimbleness and adaptability are not
an option.
We can think long-term far more
easily by turning to the past. You
dont need to add a zero to 2012 to
see that we have thousands of years
of recorded history on which we can
draw, without relying on out-of-
focus crystal balls. Builders of
nuclear waste stores have done just
that, by studying Roman concrete,
because time has proved that this
material can survive thousands of
years in remarkably good condition,
even in seawater environments.
Using historic data for risk
management is nothing new, and
recent events have shown the
danger of relying too much on the
recent past as a guide to extreme
outcomes. But the recorded past has
a great deal more to offer as well:
wisdom, experience and above all,
the chance to learn from other
peoples mistakes.
Long-term thinking is trendy, but
a nimble, adaptive focus on the
near-term allows us to address the
opportunities and threats we can
actually see. While the long-term
thinkers must sit in their bunkers,
locked in to the idea that the Berlin
Wall will never fall or that 8-track
tapes must be the future of music,
resilient entrepreneurs can be out
in the world, working around what
actually happens, moment to
moment. Alongside a deep
appreciation of the lessons of
history, its a powerful approach
that still stands the test of time.
Marc Sidwell is managing editor of
City A.M.
THE LONG
VIEW
MARC SIDWELL
Nimble thinkers can leave long-term visionaries locked in a time warp
conditions go to cityjet.com
RT. THE QUICKEST
OM 99
RTN*
25
Accounting error
[Re: Accounting rules place box ticking
above prudence, Wednesday]
Unfortuantely, Syed Kamall has made
fundamental errors in his article. The
accounting rules proposed by International
Financial Reporting Standards (IFRS) dont
allow balance sheet inflation. They are also
not yet finalised and the IFRS rules relevant
to banks werent in operation during the
financial crisis. The box ticking that Kamall
writes about is a feature of US accounting
rules, as is asset inflation. Balance sheet
inflation during the financial crisis was due
to very odd accounting practices adopted to
deal with securitisation that had not been
qualified by UK and EU auditors. These
practices were never sanctioned by
International Accounting Standards (IAC),
the precursor to IFRS, or UK generally
accepted accounting principles (GAAP).
IFRS regulations continue previous IAS and
GAAP philosophy and advocate prudence
and good policy. This includes the fair value
concept, which means that if no one wants
to buy your product it does not have value.
The IFRS boards discussion with US
accounting regulators, which is causing
delay and contention, is about valuing
structured items that no one wants to buy at
the time of reporting. The US argument is
that someone may want to buy it in future
and they can model the price. This has
proven to be inaccurate. Examples include
the sort of toxic assets held by the bad bank
section of Northern Rock.
Kumar Devadasan
B
SKYBS delight at
remaining the primary
broadcaster for live football
in the UK is not unreserved.
Increased competition
from the likes of Al Jazeera and
ESPN has forced it to pay
handsomely for the privilege, and
the entry of BT into the market
threatens its pre-eminence more
powerfully than any of its previous
competitors have done.
The unexpected emergence of
BT, and the fact that it won the
rights to show 38 of the 154 games
available, is an unwelcome game-
changer.
One of the key pillars of Skys
dominance of the UK pay-TV
market has been its control of the
Premier League rights. Even when
it has had to share these with the
likes of Setanta and ESPN, the
combination of exclusivity on the
top matches, plus Setantas and
ESPNs lack of any direct
distribution platform to the
consumer, has always given Sky the
upper hand.
Yet BT represents an altogether
different challenge. Unlike Setanta
and ESPN, BT has a platform of its
own albeit, at this stage, a
platform that currently lacks
critical mass.
Crucially, in terms of the
matches themselves, BT will now
hold 18 of the first pick 38 games
and this changes this dynamic:
undoubtedly BT will market
aggressively to entice consumers to
sign up to its Infinity fibre
broadband service with the allure
of football games. You would also
expect to see an attractive pricing
offer, which will limit Skys ability
to pass on the increased cost of the
football packages to consumers
and also its ability to attract BT
broadband customers across to
TOP TWEETS
Cameron and lots of politicians seem to have
bad memories when at Leveson. Million
pound book deals tend to restore them.
@Tim_Burgess
Whether Syriza or New Democracy win in
Greece, there will still be violent neo-fascists
in the parliament.
@cocodinos
Look at the foreign policy issues listed on Mitt
Romneys website. Europe is not mentioned.
@Sir Socks
Ken Clarke said only a few extreme
nationalists want a referendum on EU
membership. Its 82 per cent of the UK.
@harrph
Are shareholder revolts over executive pay
a coherent response to poor performance?
YES
The 2012 AGM season has witnessed high levels of shareholder
activism, focused on the bellwether issue of executive pay. The UK
tends not to regulate these issues, believing that companies
should follow good practice or explain their position comply or
explain. This year we are seeing shareholders challenge some
companies a robust demonstration of this principle at work. In
general, shareholders dont have a problem with pay for
performance, and overall levels of voting are not dissimilar from
previous years. What we are seeing in the market is a coherent and
concerted response by shareholders where it is felt that companies
have fallen short of the corporate governance standards expected,
or where pay is out of line with performance. The shareholder
spring is, therefore, simply the result of a democratic capitalist
system in action.
Carol Arrowsmith is a remuneration partner at Deloitte.
Carol Arrowsmith
NO
Thomas de Freitas
Shareholders have proven themselves an ignorant mob in recent
times. Success comes from the top, and if chief executives are
hounded out of office by shareholder activism, businesses critical to
our economy and its continued recovery will be left without
direction. Chief executives capable of running large public
businesses are rare enough; try paying them less and watch them
drift over to the US, China, or wherever else they will earn more (and
be taxed less). Make sure they own and are paid in shares (not
options which incentivise risk taking) and put claw-back measures
in place if they underperform, but not to the extent that they never
take a chance. Anyone prepared to shoulder the weight of
expectation of shareholders and fund managers, particularly in such
choppy markets, is deserving of premium rewards.
Thomas de Freitas is managing director and director of specialist
markets at Communicate Recruitment Solutions.
RAPIDresponses
Skys own service.
Indeed, one of the greatest
dangers, from a structural
perspective, is that consumers take
advantage of the pick and mix
approach offered by BT YouView
for free channels, BT for Premier
League matches and LoveFilm or
Netflix for films and move away
from the subscription model that
is at the heart of Skys approach.
Sky has always puffed up its
margins by getting subscribers
locked into a bundle of
programming in which football
fans, for example, cant buy the
sports channels alone but only
alongside the basic Sky package.
Unlike competitors in the past,
BT has a well-known national
brand that can challenge the
assumption that Sky is the home of
Premier League football. After
years of Sky eating into its
broadband base, it has obviously
made the decision to take the fight
to Sky in its core product. On the
cost side, Sky will also now pay 40
per cent more for a less attractive
package: while it is has been
excellent at controlling costs, there
is an opportunity cost here. The
savings it could have made to boost
overall profitability will now have
to be used to offset the rising costs
of football.
All this adds up to one of the
most significant challenges Sky has
faced in a long time.
Ian Whittaker is head of European
media equity research at Liberum Capital.
FRIDAY 15 JUNE 2012
IAN WHITTAKER
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News Editor Elizabeth Fournier | Business Features Editor Philip Salter | Lifestyle Editor Zoe Strimpel | Sports Editor Frank Dalleres
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one of todays columns? Do you have another subject you want
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Email theforum@cityam.com or comment at cityam.com/forum
Sky under threat
as BT takes fight
to football rights
I
N THE future, nobody will move
their face. That is, at least, in David
Cronenbergs dystopian vision,
adapted from Don DeLillos novel
Cosmopolis.
Through billionaire finance whiz-
kid Eric Packer (Robert Pattinson),
Cronenberg seems intent on building
an American Psycho for the 21st centu-
ry, with Pattinson essentially playing
an updated Partick Bateman. Packer
conducts his business from an inter-
net-connected, tank-like stretch limo,
dreaming up tweaks to his forex-trad-
ing algorithm to add a few more zeros
to his bank balance. In classic Bateman
style, he receives a daily medical check-
up (one scene involves a protracted
prostate exam, conducted during a
wealth management meeting); he
attempts to buy the Rothko Chapel,
just so he can know it belongs to him
and he lines his limo in cork in a futile
attempt to sound-proof it. Hes very
aspirational.
Hes in the limo because, like a
spoiled child, he has demanded his
security team take him across town for
a haircut. This is a bad idea for several
reasons: gridlock caused by an anti-
capitalism protest; a presidential visit;
the funeral procession of a beloved
rapper. Oh, and somebody might be
trying to kill him. The car barely
moves but he receives visitors, who
trade lines about the nature of wealth
and money (you couldnt call it con-
versing, exactly). Like a cross between
Gordon Gekko and Rainman, he wor-
ries about the strength of the yuan but
doesnt really get people (isnt this
how people talk? he implores his
soulless socialite wife).
The sterile world of Packers limo is
a stunning oasis of technology and
wealth amid the fumes and grime of
the city. Even as anarchists descend on
the car, its passengers seem blissfully
unaware, so far removed from the pro-
testers that they dont even acknowl-
edge their existence. The limo,
crawling through the anarchic streets,
becomes a blindingly clear metaphor
for the financial crisis (you cant avoid
the parallel, even though the novel
was released five years prior to the
crash). But what could been a lazy
deconstruction of the financial sector
Cosmopolis is flawed
is turned on its head, with the self-sat-
isfied egotism of the anti-capitalist
movement with clear parallels with
the Occupy demonstrations also com-
ing under fire. As Packer says: Nobody
hates the rich. Everybody is 10 seconds
away from being rich at least thats
what they think.
Youre left with a rather empty, very
misanthropic world, peopled by beau-
tiful, empty people. If Pattinsons aim
was to exorcise the ghost (or the vam-
pire) of the Twilight films, he goes
some way towards achieving it; he may
not have to move his face a great deal
but his presence is palpable.
Cosmopolis isnt classic Cronenberg
Prostitutes and scoundrels roam the seedy
docks in the RSCs The Comedy of Errors
How to escape
from the rain
THE Royal Shakespeare Companys
adaptation of The Comedy of
Errors at Camdens Roundhouse is
nothing if not ambitious.
The seedy markets of
Shakespeares Ephesus become a
rundown dockland reminiscent
of the Baltimore Docks from the
second season of The Wire.
Antipholus and Dromio of
FRIDAY 15 JUNE 2012
26
cityam.com
THEATRE
THE COMEDY OF ERRORS
Camden Roundhouse | By Steve Dinneen
hhhii
FILM
COSMOPOLIS
Cert 15 | By Steve Dinneen
hhhhi
LIFE&STYLEGOING OUT
WHERE
TO DRINK
TIM BADHAM
Syracuse (two sets of twins,
separated at birth from their
respective Ephesus-based siblings)
arrive in a crate as illegal
immigrants. Prostitutes and
hawkers selling knock-off Louis
Vuitton handbags roam the
docks, always on the lookout for
the sinister armed security
forces.
Merchants become modern-day
wide-boys, clad in leisurewear,
camel-skin jackets and shiny
polyester suits. The king is a
Glaswegian mobster who rules the
underworld with an iron fist: an
opening scene sees his security
goons half drowning a hapless
Egeon in an aquarium.
The Comedy of Errors is hardly a
subtle play but director Amir
Nizar Zuabi ramps up the camp
and slapstick to an almost absurd
degree. Crates, actors and entire
houses are delivered to the stage
on a giant cargo winch; dock
workers and police become
marching bands playing live
music; characters are flown
overhead, while others are
plunged into the giant aquariums
at the edge of the stage.
At times the production skates a
little close to pantomime and the
FILM
A ROYAL AFFAIR
Cert 15 | By Steve Dinneen
hhhii
but its a fascinating interpretation of
the times we live in, and an entertain-
ing one at that.
A
TWO-AND-A-HALF-HOURmovie
about the Danish Royal family.
Sold yet? Neither was I. In fact,
its testament to the strength of
the Danish film industry that A Royal
Affair is even getting a British release.
It documents one of the most famous
chapters in Danish history and, even
by our own bonkers monarchal
standards, its quite a tale.
English princess Caroline Mathilde
sets off to Denmark to marry her
cousin, who, rather than the fairytale
prince shed been hoping for, turns out
to be a tittering ninny. Worse, hes also
slightly unhinged possibly schizo-
phrenic, earning him the rather
unkind nickname the Mad King
and completely under the thumb of
the socially regressive Danish court,
who care only for self-preservation and
looking after their pals. The peasants of
Copenhagen arent eating much bread
SEEMINGLY in reaction to the recent
weather, an abundance of new watering
holes have cropped up in London. The
Collection, one of Chelseas choicest
ventures on Brompton Road, relaunched
with Kitchen 264, which includes a swanky
new lounge bar designed by maestro of
interiors Tom Dixon. He utilises his
signature hanging metallic lighting
alongside scorched woods, exposed bricks
and plush leather banquettes.
Close by in South Kensington, the
exclusive Brompton Club will be opening its
tightly sealed doors to the public, as well as
one of Manhattans hottest chefs, when
John DeLucies The Lion pops up until July.
Renowned for his elegant take on Italian-
American cuisine and his ability to draw in
the right crowd at exclusive joints like the
Waverly Inn, the sophisticated oak-paneled
atmosphere of the Brompton Club seems
like the ideal place to play host to The Lions
signature dishes.
During the Olympics an unprecedented
luxury pop-up will launch on Chiswell
Street in Moorgate. The Retreat will be
open for 17 days and supply unlimited
food, drink and entertainment to all of its
members, with a variety of different rooms
including an outdoor park, a Great British
Diner serving fine fare for breakfast, lunch
and dinner, a cinema to catch the Olympic
action, a glamorous nightclub, a country
club and even a backstage theatre area
with on-site beauty professionals.
Xavier Rousset and Agnes Sverrison of
Michelin-starred Icelandic resto Texture are
continuing their successful foray into the
world of wine bars with the second
installation of 28-50 Wine Workshop &
Kitchen which opens soon on Marylebone
Lane. The warm and rusticated design
executed by the team behind Roka
encompasses floor-to-ceiling lighting and
a striking bar. Wine will be a key feature,
with many of their Collectors List on offer
alongside a menu of light bites.
In Soho, a contemporary bar and
brasserie named Central & Co launched
this week, which will offer small plates of
British cuisine that prioritises
provenance. It looks well positioned to
become a popular post-work haunt for
Sohos media set.
Tim Badham is the founder of Innerplace,
Londons leading entertainment concierge
service. www.innerplace.co.uk.
high-camp of the Dromio twins
can get a bit grating, especially a
scene in which Nell (who never
appears on stage in the original
text), attempts to squire one of
them with a marrow.
But there is certainly never a
dull moment, with the production
bulldozing through the play at
breakneck speed. Its not a classic
but you wont forget it in a hurry
either.
The Comedy of Errors is part of
a Shipwrecked trilogy by the Royal
Shakespeare Company at the
Roundhouse, alongside The
Tempest and Twelfth Night.
The RSCs Comedy of Errors is no classic but its still an enjoyable slapstick romp
but compelling
FRIDAY 15 JUNE 2012
27
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entered into a prize draw for which winners will receive a high-
luxury leather watch box (pictured), a
three year subscription to 00/24
WatchWorld and two tickets to the
glamorous Watch of the Year awards
ceremony in London in September.
The Readers Award, voted for by City
A.M. and 00/24 WatchWorld readers,
will be presented alongside awards
to the best watches in five price
categories, picked by an esteemed panel
of expert judges.
TO VOTE: Please visit http://tinyurl.com/0024vote
A Royal Affair is too long... its a bit like
watching an interminable reality TV show in
which the contestants are executed at the end
and they certainly arent getting any

cake.
Most of the action takes place in and
around the palace but even here the
gilt furniture glowers moodily from
shadowy corners this is a time of
political turmoil and there is no place
for frivolities like clear lighting.
As far as the court is concerned,
everything is going just fine until
subversive Enlightenment-thinker-
come-physician Johann Friedrich
Struensee is parachuted into the court
as the kings quack. Hes charming and
brooding and the king falls madly in
love with him in what, given a differ-
ent historical backdrop, could have
been a heart-warming bromance
adventure. A power-struggle that
helped to define the direction of
Danish culture ensues, with an increas-
ingly despotic Struensee intent on
exerting his influence to free the subju-
gated peasantry and dismantle the
powers of the landed gentry.
Alas, the friendship comes to an
abrupt end when Struensees head falls
into the axe-mans basket. You see,
while he is a man of principle, he also
has an eye for the ladies and the queen
is too good a prize to pass up.
The dynamic between the suave
Struensee played by Mads Mikkelsen,
who you might remember as scar-faced
poker-player Le Chiffre in Casino Royal
and bumbling Christian can be capti-
vating, with Struensee torn between
helping the people and exploiting the
vulnerable king.
Mikkelsen delivers the standout per-
formance, with Struensee simmering
under his cool faade, as the heavy bur-
den of power takes its toll. The support-
ing cast play their roles well enough,
but broad brush strokes render the
majority of them either heroes or vil-
lains (you can play a game of
Forbrydelsen bingo, with more than a
few faces familiar from the hit Danish
TV show).
The main problem, though, is that
its just too long. Mad king Christian
VIIs reign lasted a total of 42 years
and by the end of A Royal Affair, I was
starting to suspect they were recreat-
ing it in real-time; like watching an
interminable reality TV show in
which the contestants are executed
at the end. You start off caring about
Struensee but by the end, I was wish-
ing hed just put his head on the
chopping block and get it over with.
Our guide to the best events
to see in the world of the arts
Invisible at the Hayward Gallery is the
kind of exhibition your grandpa would hate.
As the name suggests, its a celebration of
art that isnt there the intangible and the
hidden. White-on-white paintings, pencil
lines meticulously almost imperceptivity
drawn around the cracks on the ground. It
is highly recommended youre a fan of
conceptual art and have a bit of a sense of
humour. 12 June to 5 August, Hayward
Gallery, South Bank.
Gold: Power and Allure at Goldsmiths
Hall is another exhibition that does what it
says on the tin: it is a celebration of gold, in
all its opulent, lustrous glory. It charts the
history of one of the most enduringly
valuable commodities, showcasing more
than 400 treasures from across the country,
ranging from as early as 2500BC to the
present day. 1 June to 28 July, Goldsmiths
Hall.
Ink: The Art of China, at the Saatchi
Gallery will showcase the most impressive
ink works on loan from Chinese Ink
Collectors, including Qiu Jies exceptional
piece Mao in the Cotton Field. Other artists
include Nobel prize winner Gu Wenda. Not
to be missed by fans of the medium. 19
June to 5 July, Saatchi Gallery, Duke of
York's Square.
Those with a penchant for the luxurious
should check out the Masterpiece London
Exhibition, a fair showcasing the best in fine
and decorative arts. It will feature premium
collectors items such as classic cars, fine
wines, jewellery and design from around
the world. 28 June to 4 July, South Grounds
of the Royal Hospital Chelsea.
The Barbican will mark the 50th
anniversary of the James Bond film
franchise from 1962s Dr No to this years
Skyfall with a showcase of costumes, cars,
gadgets, graphic design, weapons and
more, entitled Designing 007 Fifty Years
of Bond Style. 6 July to 5 Sept, Barbican
Centre. By Steve Dinneen
Alicia Vikander and Mads
Mikkelsen as the Danish queen
and her physician
Robert Pattinson shines
as the empty, enigmatic
Eric Packer
28
TV & GAMES
cityam.com
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BBC1
SKY SPORTS 1
5pmLive US Open Golf 3amT20
Cricket 5amFootballs Greatest
5.30am-6amPowerboating
SKY SPORTS 2
5pmLive T20 Cricket 8.30pm
Ashes Memories 9pmRoad to
London 9.30pmPowerboating
10pmYoure on Sky Sports!
11.30pmFootballs Greatest 12am
T20 Cricket 2amYoure on Sky
Sports! 3.30amRacemax 4.30am
Trans World Sport 5.30am-6am
Thrillseekers
SKY SPORTS 3
7pmTight Lines 8pmWWE
Wrestling Special 9pmWWE:
Late Night Smackdown 11pm
WWE: Late Night Bottom Line
12amWWE Wrestling Special
1amRacemax 2amTrans World
Sport 3amNRL Fulltime 3.30am
Super Leagues Supermen
4.30amTight Lines 5.30am-6am
Road to London
BRITISH EUROSPORT
7pmUEFA Euro 2012 Show
7.30pmMotoGP 9.15pmLe Mans
24 Minutes 9.45pmHorse Racing
Time 10pmEuro 2012
12am-12.30amIntercontinental
Rally Challenge
ESPN
7pmNBA 9.30pm30 for 30
11.30pmPress Pass 2012 12am
MMA Live 12.30am30 for 30
2.15amFIBA Basketball 2.45am
ESPN Kicks: Extra 3amLive
International Rugby Union
5am-8amLive Australian Rules
Football
SKY LIVING
6.30pmCSI: Crime Scene
Investigation 7.30pmBattle of
the Brides 8.30pmCougar Town
9pmCriminal Minds 11pmBones
12amLadyboys 1amMaury
1.50amAmericas Next Top Model
2.40amMedium3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer:
Studio debate.
BBC THREE
7pmDoctor Who 8.30pmSnog,
Marry, Avoid? 9pmDead Boss
10pmRussell Howards Good
News Extra 10.50pmFamily Guy
11.30pmAmerican Dad! 12.15am
Dead Boss 1.15amLive at the
Electric 1.45amRussell Howards
Good News Extra 2.30amSnog,
Marry, Avoid? 3amEuros Most
Shocking Moments 3.55amLive
at the Electric 4.25am-5.25am
Dead Boss
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmThe Big Bang
Theory 8.30pm2 Broke Girls
9pmFILMChain Reaction 1996.
11.05pmRevenge 12amBig Bang
Theory 1amScrubs 1.30amHow I
Met Your Mother 1.55amRules of
Engagement 2.20amShameless
3.15amFranklin & Bash
3.55amDesperate Housewives
4.40am90210 5amGreek
5.25am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmStorage Wars 9pm
American Pickers 10pmVietnam:
Lost Films 11pmStorage Wars
11.30pmPawn Stars 12am
American Pickers 1amVietnam
2amSwamp People 3amIce
Road Truckers 4amLock n Load
5amPawn Stars 5.30am-6am
American Restoration
DISCOVERY
7pmBear Grylls: Born Survivor
8pmFreddie Flintoff Goes Wild
9pmWhale Wars: Viking Shores
10pmAircrash Confidential 11pm
River Monsters 12amWhale
Wars: Viking Shores 1amAircrash
Confidential 2amAuction Kings
3amAmerican Chopper: Senior
Versus Junior 3.50amIce Pilots
4.40amBear Grylls: Born
Survivor 5.30am-6amDestroyed
in Seconds
DISCOVERY HOME &
HEALTH
7pmA Wedding Story 8pmI
Didnt Know I Was Pregnant 9pm
19 Kids and Counting 10pm
Quints By Surprise 11pmSecretly
Pregnant 12am19 Kids and
Counting 1amQuints By Surprise
2amSecretly Pregnant 3amA
Wedding Story 4amA Baby Story
5am-6amBirth Stories
SKY1
7pmSimpsons 8pmFuturama
8.30pmThe Simpsons 9pmAn
Idiot Abroad 2 10pmA League of
Their Own: Unseen 11pmDog the
Bounty Hunter 12amRoad Wars
1amRoss Kemp: Middle East
1.55amBrit Cops: Rapid Response
2.55amGadget Geeks 3.45am
Medical Emergency 4.35am
Raising Hope 5.05am-6amDont
Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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6pmBBC News
6.30pmBBC London News
7pmMatch of the Day Live:
Euro 2012
10pmBBC News
10.25pmRegional News
10.35pmCHOICE The Graham
Norton Show
11.20pmThe National Lottery
Friday Night Draws
11.30pmWhite Van Man
12amEastEnders
1amWeatherview1.05amSign
Zone: Silk 2.05amSign Zone:
Question Time 3.05amSign Zone:
Great British Menu 4.05am-6am
BBC News
6pmRoyal Academy Summer
Exhibition: The Culture Show
7pmAntiques Road Trip
8pmGardeners World: From
Gardeners World Live at the
NEC in Birmingham.
9pmThe Great British Story: A
Peoples History: The Black
Death and the Peasants Revolt.
10pmEpisodes
10.30pmNewsnight
11.00pmThe Review Show
1145pmWeather
11.50pmFILMKlute: Thriller,
with Donald Sutherland. 1971.
1.40amTaken 3amBBC News
4.05am-6amClose
4.30pmEuro 2012 Live:
Ukraine v France (Kick-off
5.00pm).
7pmLondon Tonight
7.15pmITV News
7.30pmEmmerdale
8pmCHOICE Lewis
10pmITV News at Ten
10.30pmLondon News
10.35pmEuro 2012 Highlights
11.35pmFILMDantes Peak:
1997.
1.25amJackpot247; ITV News
Headlines 3.30amFILMCare
Bears: Journey to Joke-a-Lot:
2004. 4.50am-5.30amITV
Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.25pm4thought.tv
7.30pmCome Dine with Me
8.30pmThe Million Pound
Drop Live
10pm8 Out of 10 Cats
10.50pmStand Up for the Week
11.40pmRandom Acts 11.45pm
FILMWithout a Paddle: 2004.
1.35amNo, No, No 1.40amMy
Name Is Earl 2amDirty Sexy
Money 2.40amThe Million Pound
Drop Live 4.10amMesh: Tourist
Trap 4.15amThe Confession
4.20amDeal or No Deal
5.15am-6amCountdown
6pmHome and Away
6.30pm5 News at 6.30
7pmCSI: Crime Scene
Investigation: 5 News Update
7.50pmNCIS: The team tries
to catch a spy.
9.05pmCSI: NY
10pmCHOICE Big Brother:
Live Eviction
11pmBig Brothers Bit on the
Side
12amSuperCasino
3.55amMotorsport Mundial
4.20amGreat Scientists 4.45am
Great Scientists 5.10amMichaelas
Wild Challenge 5.35am-6am
Michaelas Wild Challenge
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6 7 8 9 10
11
12 13
14 15 16 17 18
19
20 21
22
13 23
45
14 5 9
34 15
16 10
45
7 21
9 16
6 17 12
45
20 11
24
6
11
22
27
7
28
15
10
8
4
45
10
10
14
19
30
7
29
39
12
7
9
ACROSS
2 Proclaimer of public
announcements (4,5)
6 Port in northwestern
Israel on the Bay
of Acre (5)
8 Jargon (5)
11 Actual (7)
12 Crevice (5)
13 Smudge, daub (5)
14 Light-beam
amplier (5)
17 Missives used
as birthday
or Christmas
greetings (5)
19 Nobility (7)
20 Fine cords of
twisted bres (5)
21 Great feast (5)
22 Most strong (9)
DOWN
1 In a morally
correct way (9)
2 Thin cotton or linen
dress material (5)
3 Sir Thomas ___,
English poet
(1503-1542) (5)
4 Burns supercially (5)
5 Fireplace (5)
7 Number represented
by the Roman XV (7)
9 Storm around (7)
10 Sill of a house
door (9)
15 Branchlet (5)
16 Take (an examination)
again (5)
17 Overseas
telegram (5)
18 Respond (5)
N
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4

4
4
L A M B D A L K
A A R A V I N E
C U S T O M S G N
K T S H A H Y
S H A L L R T E A
L E A K A G E
B E L T M A R I E
A S E E D R R
T T S A U N T E R
H E A L T H E O
E R L A R G E R
1 7 8 4 9 7 9
5 9 2 6 1 7 8 4 3
2 5 1 3 2 1
9 8 7 6 6 9 1
3 8 9 7 6 5
9 7 2 4 5 8 6 3 1
5 4 3 1 2 7
6 1 2 5 2 1 3
9 8 5 9 6 8
7 9 4 6 8 1 3 2 5
1 3 8 9 7 4 9
4
4
4
4
4
4
4
4
4
The nine-letter word was
STREAKING
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
FRIDAY 15 JUNE 2012
THE GRAHAMNORTON SHOW
BBC1, 10.35PM
Russell Brand discusses his role in
musical comedy Rock of Ages, and
Emily Blunt also drops by to talk about
The Five-Year Engagement.
LEWIS
ITV2, 8PM
The detective discovers his favourite
rock band are on the verge of a come-
back but soon suspects they may be
mixed up in the murder of an orphan.
BIG BROTHER: LIVE EVICTION
CHANNEL5, 10PM
Brian Dowling reveals which of the
nominees has proved least popular
with the voting public. Plus, the latest
action from the house.
TVPICK
THERE was a collective sigh of
relief around the country when
England managed to take a point
from their opening group game
against France. It was a solid, if
unspectacular, start for Roy
Hodgsons men, but the new
manager will be feeling
confident his side can take three
points against Sweden in Kiev
this evening.
It was all looking good for the
Swedes when Zlatan Ibrahimovic
fired them into a 52nd-minute
lead against co-hosts Ukraine on
Monday night. That was until
Andriy Shevchenko notched a
quick double, meaning Sweden
now need at least a point against
England to hold any real
chance of progressing to the
knockout stage.
As regular readers already
know, Im more than happy to
oppose England at this
tournament and, although they
surprised me against France, I
think they will find it tough this
evening. Sweden have never been
beaten by England in seven
competitive matches and it
could actually be to Englands
disadvantage that the
Scandinavians lost to Ukraine.
I thought Hodgson organised
his team very well against the
French and they did look solid at
the back. John Terry and Ashley
Cole are world-class defenders
and Ibrahimovic will have his
work cut out to unsettle them.
However, Im worried about
England up front until
suspended striker Wayne Rooney
steps back into the fray against
Ukraine next week.
Danny Welbeck has had a
strong season for Manchester
United, and is certainly very
promising for the future, but Im
not sure hes quite up to this level
just yet. Overall, Andy Carroll has
had a poor campaign for
Liverpool and, for me, Jermain
Defoe isnt really top class. Ashley
Young looked dangerous against
France and he could pose
problems for Sweden, while
James Milner and Alex Oxlade-
Chamberlain have the potential
to make an impact.
Ibrahimovic is undoubtedly
Swedens star man and the rest
of the team doesnt look
especially strong on paper.
However, that is regularly the
case and they have consistently
proved incredibly difficult to
beat at major tournaments.
England can be backed at 11/10
with Coral and that looks too
short. A win isnt exactly
essential for Hodgsons side and I
think there is a good chance of
them drawing again. The last two
competitive meetings between
the nations have both been
draws and a repeat of that is
worth backing at 11/5 with Coral,
who will refund losing bets if the
final goal is scored directly from
a penalty.
The 1-1 scoreline has been the
most common result so far
during the tournament and a
repeat of Englands opening
result is fancied at 6/1. Spread
bettors are advised to sell total
goals at 2.25 with Sporting Index.
30
THEPUNTER
SPORT TRADER
cityam.com
FRIDAY 15 JUNE 2012
SWEDEN .................................
ENGLAND................................
7.45pm BBC 1
nPointers
Draw at 11/5 with Coral
1-1 at 6/1 (general)
Sell total goals at 2.25 with Sporting Index
IT seems a long time ago that a
calamitous France side landed
in South Africa for the 2010
World Cup, torn apart by
internal divisions and managed
by a man no-one in France
wanted for the job. Raymond
Domenechs charges were sent
home in humiliation, finishing
bottom of their group and
shaming the reputation of a
nation that had dominated
world football just over a
decade earlier.
Domenechs successor,
Laurent Blanc, has brought
back stability and tranquility to
the side and facing England on
the back of a 21-match
unbeaten run, the French were
perhaps disappointed to have
left Donetsk without all three
points. They still showed
enough in the 1-1 draw to be
clipped into 8/1 for the
tournament and with players
of the calibre of Samir Nasri,
Karim Benzema and Franck
Ribery they surely should have
enough to see off a dogged
Ukraine team.
Ukraine have never beaten
France in six previous
fixtures, with Les Bleus
winning three and the other
half ending in draws. The co-
hosts had looked unlikely
winners against Sweden at
one stage, falling behind to a
Zlatan Ibrahimovic goal,
before their talisman Andriy
Shevchenko rolled back the
years with a quick-fire brace to
put the Ukrainians in pole
position of Group D.
Unfortunately, their reliance
on the 35-year old striker,
plagued by injury niggles,
hardly stands them in good
stead when we compare with
Frances attacking talent.
France know only too well
the value of partisan support
having triumphed in the World
Cup on home soil back in 1998
and we should expect this to be
a testing assignment for them
back in Donetsk. However, for a
country touted as potential
Euro 2012 winners, Blancs
boys should be backed to beat
their rivals this evening. With
the exception of Frances 4-1
friendly win last year, no team
has managed to find the net
more than twice in clashes
between the two and a French
2-1 victory appeals at Corals
best price 9/1.
UNSURPRISINGLY the racing
fare on offer this weekend isnt
the best with Royal Ascot just
around the corner, so well
concentrate on tomorrows
main three-year-old handicap,
Yorks Bond Tyres Trophy
Handicap (3.10pm).
Roger Charlton has already
scooped plenty of big Saturday
prizes this season and I expect
him to land another with
PRICELESS JEWEL. This
daughter of Selkirk won well on
her seasonal reappearance at
Kempton and, although she has
been raised 9lb, Safari
Sunseeker, who dead-heated for
second, bolted up at Haydock a
fortnight ago. She is worth
backing at 9/2 with Coral.
I will also be having an each-
way saver on Denis Coakleys
GABRIELS LAD at 14/1 with
Coral. He was tipped up in this
column last month for the
Coral Sprint Trophy at
Newmarket, but ended up
being a non-runner. He is very
well-regarded and Kieren Fallon
is an interesting jockey
booking.
One of the highlights of this
summers racing calendar is the
Coral-Eclipse at Sandown Park
on Saturday 7th July and
sponsors Coral are offering City
A.M. readers a money cant buy
invitation to the Parade Ring
prior to the race. Readers can
also get Premier Enclosure
badges for 25 (15 saving) and
a 5 free bet at the Sandown
Park Coral betting shop.
Book now as the offer closes
at midday on Tuesday 19th
June. To book either call 0844
579 3012 and quote
SPCITYCE12 or go online to buy
tickets at www.sandown.co.uk,
select Coral Eclipse Festival and
Premier Enclosure from the list
and enter promo code
SPCITYCE12 on the
booking page.
You can follow me on Twitter
@Bill Esdaile for all my racing
views and we will be covering
each day of Royal Ascot next
week.
UKRAINE.................................
FRANCE...................................
5.00pm ITV 1
nPointers
Back France at 11/10 with Coral
Back France to win 2-1 at 9/1 with Coral
Buy total goals at 2.3 with Sporting Index Text MOBILE
to 65559
coral.co.uk
1700+ Shops
nationwide
0800 242 232
Mon-Sat from8.30am
20 FREE BET!
FOR NEW CUSTOMERS
PENALTY PAYBACK: Singles only on specied markets qualify. Max refund 100 per customer per market. Pre-match bets only.
Applies to Euro 2012 matches played between 12th 15th June only. Any remote refunds will be credited within 24hrs. Coral rules apply.
For additional terms see coral.co.uk. Where a bet qualies for this offer and Consolation Cash Back, stakes will only be refunded once
regardless of the number of concessions to which the bet qualies. *Head First offer: We refunded losing First / Last Goalscorer,
Correct Score andScorecast bets on Greece v Poland, Germany v Portugal, Irelandv Croatia andEnglandv France as
the rst goals were scoredwitha header. HeadFirst offer nolonger available. 20NEWACCOUNT OFFER: Available on
mobile, online and by phone. Newcustomers, 18s + &UK residents only. Deposit and stake up to 20 on any sporting event(s) to receive
a matched deposit free bet on selected markets. Free bet stake not returned with any winnings. Full terms at coral.co.uk/20tc You will
be charged the cost of a standard SMS by your mobile network provider. Mobile service compatible with all internet enabled handsets.
Bet Responsibly. Gambleaware.co.uk - Call 0808 802 0133
TODAY'S MATCHES
13/5 Ukraine 11/5 Draw France 11/10
Group D, Kick-off 5pm, Live on ITV1
13/5 Sweden 11/5 Draw England 11/10
Group D, Kick-off 7.45pm, Live on BBC1
FIRST GOALSCORER
4/1 K. Benzema (F)
7/1 O. Giroud (F)
8/1 S. Nasri (F)
8/1 F. Ribery (F)
10/1 A. Milevskiy (U)
10/1 A. Shevchenko (U)
11/1 M. Devic (U)
11/1 A. Voronin (U)
FIRST GOALSCORER
7/1 A. Young (E)
7/1 D. Welbeck (E)
7/1 A. Carroll (E)
7/1 Z. Ibrahimovic (S)
8/1 S. Gerrard (E)
9/1 M. Rosenberg (S)
9/1 J. Elmander (S)
10/1 T. Walcott (E)
PENALTY PAYBACK: Applies to First / Last Goalscorer
and Scorecast bets on todays live Euro 2012 matches.
Prices subject to uctuation.
CASH BACK
KINGS
WHERE'S YOUR MONEY
GOING TODAY?
WE REFUNDED
LOSING BETS ON
THE FIRST 4 DAYS
OF EURO 2012!
*
PENALTY
PAYBACK
WE
'
LL REFUND LOSING
BETS IF THE FINAL GOAL
IS SCORED DIRECT
FROM A PENALTY
Resolute Swedes can continue
strong record against England
It would be nice to pick up a Priceless Jewel before Royal Ascot
nPointers
PRICELESS JEWEL 3.10pm York (tomorrow)
GABRIELS LAD e/w 3.10pm York (tomorrow)
BEN CLEMINSON PREVIEWS TODAYS EURO 2012 ACTION AND BILL ESDAILE GIVES US HIS BEST RACING BETS
The battle between England defender John Terry, right, and Sweden striker Zlatan Ibrahimovic could be key to the outcome of tonights Group D game
SPORT
31
FRIDAY 15 JUNE 2012
cityam.com
TEAM LINE-UPS
n ENGLAND: B Foden; C Ashton, J
Joseph, M Tuilagi, D Strettle; T Flood,
B Youngs; J Marler, D Hartley, D Cole,
M Botha, G Parling, T Johnson, C
Robshaw (capt), B Morgan
Replacements: L Mears, A Corbisiero, T
Palmer, P Dowson, L Dickson, O
Farrell, A Goode.
n SOUTH AFRICA: P Lambie; J P
Pietersen, J de Villiers (capt), F Steyn,
B Habana; M Steyn, D Hougaard; T
Mtawarira, B du Plessis, J du Plessis, E
Etzebeth, J Kruger, M Coetzee, W
Alberts, P Spies
Replacements : A Strauss, W Kruger, F
van der Merwe, K Daniel, R Pienaar, B
Basson, W Olivier.
US golfer Tiger Woods last night
admitted he was surprised to have
began the US Open so well, having
made his best start to the
tournament in a decade.
Woods was in joint-second place
after posting a one under par 69 at
San Franciscos Olympic Club, three
strokes behind the shock early
clubhouse leader Michael
Thompson, and was clearly happy
with his form.
I played well, said Woods. I felt
like I had control of my game all day
and stuck to my game plan. We
knew it [the course] was going to be
quick, but we didnt think it was
going to happen overnight.
I was really, really surprised how
much it changed it was just like
they used sub-air on the whole place
and you had to make adjustments.
I was very pleased with every
facet of my game and I stayed
very patient.
Woodss confidence has returned
but his form contrasts that of
playing partner Phil Mickelson, who
made his joint worst start in 22 US
Open appearances.
I didnt play very well obviously,
said Mickelson. Ive got a tough
challenge just to reach the weekend.
Superb US Open
start delights
patient Woods
Lancaster relishing decisive Durban Test
IN BRIEF
Wales make changes for Australia
n RUGBY UNION: Wales have made
four changes to their team ahead of
tomorrows second Test against
Australia in Melbourne. No8 Ryan
Jones, hooker Matthew Rees and lock
Alun Wyn Jones are recalled, while
centre Ashley Beck will be given his first
Test start.
Fulham secure Williams signing
n FOOTBALL: Fulham have signed
Wales Under-17 striker George Williams
from MK Dons for the 2012/13 season,
after an undisclosed compensation
package was agreed between the two
clubs. Williams, 16, became the Dons
youngest-ever goalscorer last season.
Everyone at the club wishes him well,
said Dons chairman Pete Winkelman.
Tsonga a doubt for Wimbledon
n TENNIS: Second seed Jo-Wilfried
Tsonga is out of Queens following his 7-
6, 3-6, 7-6 defeat to Croatian Ivan
Dodig. The Frenchman also suffered a
finger injury and may now miss
Wimbledon. Compatriot Nicholas
Mahut, meanwhile, who knocked out
Andy Murray, lost his third-round tie to
Grigor Dimitrov.
Ireland swap four for All Blacks
n RUGBY UNION: Ireland coach Declan
Kidney has made four changes for
tomorrows Test away to New Zealand,
in Christchurch, the second of their Tour.
Backs Andrew Trimble and Gordon
D'Arcy start alongside forwards Mike
Ross and Kevin McLaughlin, with 10
Leinster players among those selected.
TICKETS for oversubscribed London
2012 dates involving some of
Britains leading medal hopes are set
to go on sale today in Denmark
although English-based punters will
also be able to snap them up.
Packages to watch Jamaican sprint
superstar Usain Bolt at the Olympic
Stadium are also among those
available through the website
www.sportsworld.co.uk, City A.M. has
learned. The agents are licensed to
sell to Denmark and Liechtenstein
but anyone with an address in the
European Union can take up the
deals. The tickets are part of
packages that include one nights
Danish London 2012 tickets on
offer to Brits via EU loophole
accommodation in central London.
Packages to see the mens 4x100m
relay final on 11 August, which is
likely to feature Bolt, start from
475, while the mens cycling team
sprint on 2 August, expected to
involve Team GB and Sir Chris Hoy,
starts at 795.
Swimmer Rebecca Adlington is
among the favourites for the
womens 800m freestyle final on 3
August at the Aquatics Centre in the
Olympic Park, with packages costing
upwards of 545.
Packages are also on offer to see
the USAs basketball side, the so-
called Dream Team, from 130 for a
heat match to 295 for the final, in
which they are expected to feature.
BY SPORTS DESK STAFF
BY FRANK DALLERES
ENGLAND coach Stuart Lancaster
insists he cannot wait for their
second Test against South Africa,
even though defeat would end their
hopes of a series victory.
The Springboks secured a 22-17
victory in Durban on Saturday but
Lancaster has resisted the urge to
overhaul his young,
experimental side and
has made only three
changes for
tomorrows Test in
Johannesburg.
Centre Jonathan
Joseph has been
promoted for
his first start
while fly-half
Toby Flood
and winger
David Strettle
are recalled, and
Lancaster, though without injured
pair Brad Barritt and Mike Brown, is
excited about their prospects.
I am delighted for JJ, said
Lancaster of Joseph. He has trained
very well and showed against the
Barbarians and in his short time on
the field in the first Test that he is
ready to make the step to
international rugby. To have two
21-year-old centres is exciting and
we are looking forward to seeing
this combination in action.
Saracens winger Strettle replaces
Brown, with Ben Foden returning to
full-back, while London Irishs
Joseph will start at 13 as Manu
Tuilagi switches to 12 to replace
Barritt. Consequently only
Sarries fly-half Owen Farrell, a
regular until now under
Lancaster, has been dropped,
but the coach is adamant he will still
contribute as a replacement.
Owen has had a fantastic season
and I am sure he will make a
significant impact from the bench,
Lancaster added. However, Toby has
waited patiently for his opportunity
and the time is right to allow him
the chance to demonstrate his
experience and skills in what will be
a very tough challenge.
Its a shame for Mike Brown who
worked hard to get that Test start but
Ben Foden naturally reverts to full-
back and we return to the wing
partnership of David Strettle and
Chris Ashton that served us well in
the Six Nations.
Flanker James Haskell has again
also been overlooked, despite playing
in Englands midweek 54-26 win over
Southern Barbarians. Lancaster felt
Haskell could not be considered last
week because of a lack of time to
train with with the rest of the squad.
BY DECLAN WARRINGTON
Jonathan Joseph will start
his first Test for England
Results
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Tiger Woods
posted a one
under par 69 at
the Olympic Club
NEXT IN LINE: WHO WILL
REPLACE REDKNAPP?
David Moyes
nCurrent club: Everton;
Previous clubs: Preston;
Nationality: Scottish;
Age: 49; Everton record:
P 473 W 198 D 123 L 152;
Win Percentage: 41.8%
n Works wonders on a
relatively small budget
and proved a capable,
long-term club builder.
Roberto
Martinez
nCurrent club:
Wigan;
Previous clubs:
Swansea;
Nationality:
Spanish; Age:
38; Wigan
record: P 127
W34 D 36 L 57;
Win Percentage: 26.7%
nContinually inspires Wigan to
Premier League safety while still
playing entertaining football.
Andre Villas-Boas
nCurrent club: None;
Previous clubs: Chelsea,
Porto, Academica
Coimbra; Nationality:
Portuguese; Age: 34;
Chelsea record: P 40 W
19 D 11 L 10; Win
percentage: 47.5% n
Sacked by Chelsea but still one of
Europes brightest talents.
G
E
T
T
Y
Redknapp was sacked by Tottenham on Wednesday despite finishing fourth in the league
DEFIANT Harry Redknapp insists
he has no plans to retire following
his abrupt departure from
Tottenham on Wednesday night.
Redknapp, who maintained he
would have been sacked even if he
had qualified for the Champions
League, cited his evergreen
counterpart at Manchester United.
I dont think I am coming
towards the end of my career,
said the 65-year-old. Sir Alex
Ferguson is in his seventies and
isnt coming to the end of his, hes
still the best in the world.
Former Portsmouth,
Southampton and West Ham
manager Redknapp had heart
surgery last season but added: I
am still fit as a fiddle. I feel great.
Redknapp leaves Spurs despite
finishing fourth in the Premier
League twice and leading them
into the Champions League for the
first time in 2010.
O
PINION may be divided over
whether Harry Redknapp
deserved to be cut adrift by
Tottenham on Wednesday
night, but ultimately his strong-arm
bargaining tactics left the club with
few options.
When Redknapp went public last
week with his frustration at not
being given a new contract,
arguing that the uncertainty over
his future would destabilise the
squad and could lead to the
departure of star players, he was in
effect challenging his paymasters.
Backing anyone into a corner in
negotiations can be a dangerous
tactic but the Tottenham hierarchy
of chairman Daniel Levy and
majority shareholder Joe Lewis
must be among the last people with
whom one would advise adopting
such a high-risk approach.
Faced with Redknapps
suggestion that a failure to extend
his deal would render his position
almost untenable in effect a back
me or sack me ultimatum they
appear to have refused to cave in to
that demand and called his bluff.
Redknapps stock dropped
dramatically after Christmas, as
Tottenhams early-season form
plummeted and their hopes of
another Champions League
campaign were trampled on by first
Arsenal and then, cruelly, Chelsea.
Fourth place in the Premier
League would once have been
considered a hugely successful
campaign at White Hart Lane and
he may justifiably feel he has
become a victim of his own success
since taking charge in 2008.
Perhaps he may wonder, however,
with the benefit of hindsight,
whether he did himself any favours
or in fact contributed to his own
downfall by indulging in talk of
winning the title last term.
BY FRANK DALLERES
Harry rubbishes retirement talk
and vows to emulate Sir Alex
FRIDAY 15 JUNE 2012
32
SPORT
cityam.com
FOOTBALL
COMMENT
FRANK DALLERES
Redknapp had
bluff called by
Spurs hierarchy
ITALY midfielder Thiago Motta
insists he cannot see Spain and
Croatia agreeing to draw their final
group game, even though their
draw with Croatia leaves them
vulnerable to elimination from the
European Championship.
Andrea Pirlos masterful free-kick
gave Italy the lead six minutes before
half-time but though they remained
the stronger side for much of the
match, Croatia striker Mario
Mandzukic scored the only goal of
the second-half to leave both sides
futures finely balanced.
The result puts Italy in third place
in Group C with two points, while
Croatia are joint-top with Spain with
four. Should they and Croatia draw
2-2 on Monday, Italys Euro 2012
campaign will be over but Motta is
unconcerned about their group
rivals preparing to do so.
Its true we wasted a great chance
today, as we put Croatia under
pressure and didnt finish off the
match, said Motta, who was born in
Brazil. At the end of the day a draw
is fair and we have to focus on the
next match.
Im sure Spain will try to beat
Croatia whatever happens. We are
professionals and I doubt there
would be an agreement at
the Euros.
Italy began with the same side
selected to start against Spain,
despite the goalscoring contribution
of substitute striker Antonio di
Natale, and enjoyed near-total
control of a first-half in which Pirlos
influence showed the classy
midfielder to be at his outstanding
best, even before his goal.
The Azzuri had regularly
threatened on the break, though
they failed to score before Pirlos
stunning strike, the cultured veteran
curling a right-footed effort over the
Croatian wall and beyond
goalkeeper Stipe Pletikosa.
Italys dominance remained
consistent until the games final half
hour but they thereafter began to
tire, and when Ivan Strinic crossed
towards Mandzukic, the striker
controlled the ball and powerfully
shot in via the post to earn a point
that few had predicted.
REPUBLIC of Ireland midfielder
Keith Andrews admits they were out-
classed by Spain after their decisive
defeat ended Irish hopes of reaching
the European Championship
quarter-finals.
Two goals for Fernando Torres and
one each for David Silva and Cesc
Fabregas ensured Ireland were the
first team to be knocked out of the
tournament in a game in which they
had to avoid defeat, and the reality is
that they at no point looked capable
of forging a different fate.
Spain, with four points from two
games, now top Group C on goal dif-
ference and may face England at the
tournaments next stage while
Ireland remain bottom with none.
We lost to a top
side, admits
awed Andrews
We tried to say before the game
lets learn our lessons but we shot
ourselves in the foot again, said
Andrews. They were silly goals and
we didnt learn, but theyre such a
top side any lapse in concentration is
going to hurt you.
For the majority of the game we
were chasing shadows and we could-
nt get near them. They are a
fantastic side.
Torres, starting his first match of
the tournament after La Roja began
without a striker during their 1-1
draw with Italy, raced beyond a static
defence to powerfully finish beyond
goalkeeper Shay Given in the fourth
minute and what ensued was as
effortless a victory as Spain will
have known.
Silva calmly placed Spains second
after more incompetent Irish defend-
ing and then inspired a third when
putting Torres through for a on-one-
on which he finished with all the
composure of his 2008 prime.
Substitute Fabregas then drove in a
fourth after being left unchallenged.
KETTNERS, SOHO
This Georgian mansion in the middle
of Soho is famous for its glamorous
clientele, burlesque aesthetic, selec-
tion of English wine and champagne
vibe. Not, on first glance, the sort of
place youd think of for watching the
football. Well, think again: with a
warren of private rooms available for
hire, its just the place to show how
un-hooliganesque fandom can be. Try
the Salle de France room for a delec-
table viewing experience. Matches
will also be screened in the main
area. 29 Romilly Street, W1D 5HP.
www.kettners.com
BAR KICK, SHOREDITCH
This Shoreditch institution is one of
Londons most dedicated (but cool)
venues for football screenings and
an array of table football sets ensures
you can put your own sporting
dreams into action when the whistles
blown at half-time. A good selection of
beer, cocktails and food accompanies
a fun crowd. 127 Shoreditch High Street,
London, E1 6JE. www.cafekick.co.uk
VIBE BAR, BRICK LANE
With a jumbo screen outdoors and
giant projector screens inside, Vibe is
excellently equipped for Euro 2012
screenings. If the weathers good, grab
a pew outside and take advantage of
Vibes famous open-air barbecue.
Inside or out, the place is always
buzzing (the clues in the name), so
why not make a night of it? 91-95 Brick
Lane, E1 6QL. www.vibe-bar.co.uk
PROUD AT CAMDEN, CHALK FARM
Proud Camden is going all out for the
football with several enticing offers in
its stables venue, the Old Horse
Hospital, which boasts massive plas-
ma screens showing every match,
tasty bites, lots of drinks and a party
atmosphere. Hire one of seven stables,
which will comfortably fit 20 and
comes with waitress service, or book
individual seats in the gig room for 3
per person, including club entry for
the night. 160 for a stable with hostess
service; 200 per stable includes a match-
length barbecue and a case of Carling per
stable. For other deals and offers for watch-
ing the Euro 2012, go to www.proudcam-
den.com. The Stables Market, NW1 8AH
JETLAG BAR, FITZROVIA
Sport meets cocktails at this interna-
tional-themed cafe, restaurant and
sports bar in Fitzrovia. Food is small
plates from around the world so all
customers should feel welcome
regardless of the team they support.
The Lotus Lounge has a cinema
screen, mood lighting and impressive
drinks and food its a popular venue
for screenings so availability is limit-
ed. Otherwise there are comfortable
sofas in the downstairs lounge and
plenty of other vantage points. 125
Cleveland Street, W1T 6QB.
www.jetlagbar.com
THE SPORTING PAGE, CHELSEA
A favourite for Chelsea locals, general
good-timers and fans returning from
sporting fixtures in the mood to cele-
brate or drown their sorrows, this
tasty pub has a fantastic outside ter-
race (with heaters) for half-time.
Inside, there are four screens. Watch
with one of the pubs six ales on tap.
6a Camera Place, SW10 0BH, www.thes-
portingpagechelsea.co.uk
THE MITRE, GREENWICH
A Grade-II listed coaching inn with a
main bar, two beer gardens, conserva-
tory and 16 bedrooms, the Mitre is
one of Londons loveliest venues for
sport-watching (youll have to keep
your bad behaviour outside). A good
selection of beer and lovely seasonal
British food makes the pub a winner
football or no. 291 Greenwich High
Road, www.mitregreenwich.com
Zoe Strimpel
SPORT
33
FRIDAY 15 JUNE 2012
Fernando Torres finally appeared to be returning to his finest form against Ireland
Motta: Spain and Croatia wont conspire against us
ITALY...........................................1
CROATIA .....................................1
EURO 2012
SPAIN.........................................4
REPUBLIC OF IRELAND..............0
EURO 2012
Spain 2 1 1 0 5 1 4
Croatia 2 1 1 0 4 2 4
Italy 2 0 2 0 2 2 2
Ireland 2 0 0 2 1 7 0
GROUP C
TEAM PLD W D L F A PTS
RUSSIAS Football Union is
determined to fight the punishment
of European footballs governing
body Uefa as a result of their fans
behaviour, believing it to be severe.
The presence of far-right banners
and the use of fireworks by Russian
fans in their 4-1 victory over Czech
Republic prompted Uefa to give
Russia a suspended six-point penalty
and a 96,000 fine, which the RFS
appears set to contest.
The RFS said it would fight to
avoid being subjected to this severe
punishment.
Russia set to
fight sanction
BY SPORTS DESK STAFF
FRANCE manager Laurent Blanc
believes his side have to nullify the
threat of Ukraine striker Andriy
Shevchenko if they hope to succeed
in this evenings European
Championship fixture, though he
insists they are capable of beating
the tournaments co-hosts.
He is in great form, said Blanc.
But he needs a bit of space to
show it. We will tell the players we
can beat this team because we've
done it already.
Blanc wary of
Shevchenko
From Chelsea to Greenwich, venues are pulling out the stops
Seven places to watch the Euros
Bar Kick is one of Londons best places to watch this summers European Championship
ENGLAND manager Roy Hodgson
has slammed suggestions that his
players lack the technical qualities of
their Continental counterparts, as
they prepare for tonights Euro 2012
showdown with Sweden in Kiev.
Hodgsons comments came after
France coach Laurent Blanc had
slighted England, saying a really
good side would have punished
them more in the opening stages of
Mondays 1-1 draw between the two
teams. Blancs pointed remarks
echoed familiar complaints about
English players being better at bat-
tling than ball control a theory
Hodgson was quick to shoot down.
I would definitely question any
suggestions that we are lacking in
any way or our players are not techni-
cally good enough, he said. The
Premier League is regarded widely as
a very good league and a very techni-
cal league and we have some of the
best players in that league.
Former Sweden captain Jonas
Thern joined Blanc in sniping at
England, although he chose the sup-
posed superiority complex of
Hodgsons men and their followers
as the object of a vitriolic outburst.
Thern, who led the Swedes to third
place at the 1994 World Cup, predict-
ed that his countrymen would defy
their underdog status against
Hodgsons men, whom he labelled
predictable.
Apparently the one shot towards
the France goal over 90 minutes was
all it took to ignite the chronic
English illusion of world football
supremacy, he said.
I said before the Euro finals start-
ed that Sweden would beat England
and I stand by that statement despite
the horrific display against the
Ukraine [they lost 2-1].
Englands performance had none
of the quality they like to boast it had.
France had 15 shots on goal com-
pared to Englands one. Their style of
play does not intimidate as it is pre-
dictable and stereotyped.
England has historically struggled
against Sweden as they cannot capi-
talise on our strength, which is the
physical game. Sweden does not fear
this style of football.
Victory tomorrow evening in the
second round of Group D fixtures
would leave England well placed to
qualify for the quarter-finals in their
final match against co-hosts Ukraine
in Donetsk on Monday.
A win would also be Englands first
against Sweden in a major tourna-
ment, a record that stretches back
seven fixtures, although that has not
dampened captain Steven Gerrards
confidence in taking three points.
I would think the same level of
performance [as] against France will
be good enough to beat Sweden, said
the Liverpool midfielder.
I would say so with all due respect
to Sweden who are a good, strong
team, but they are not France. I think
we can be a little bit more bold and a
More of same
is Roys best
way forward
E
NGLAND are in danger of
letting expectations get too
high again just because they
have drawn their opening
match against France.The key for
them is to build on a decent
performance, particularly in the
opening exchanges of that game,
but take this competition stage by
stage. They simply cannot have any
grand plans when they are three
fixtures into a new managers
reign and with a squad so heavily
depleted by injury and suspension.
If I was Roy Hodgson I would
approach todays clash with
Sweden with the same strategy as
he did against the French. I dont
think that is being particularly
cautious England were very good
and looked dangerous in the first
15 minutes; its a question of
keeping possession.
For that early spell against
France they retained the ball well,
got their creative players such as
Ashley Young on the ball and
carved out good opportunities.
Once Laurent Blancs team got
back into the game they lost
confidence and struggled to
reassert themselves after the
equaliser, settling for defence.
Alex Oxlade-Chamberlain did
enough to keep his place, Young
and Danny Welbeck need to hold
the ball better and Steven Gerrard
should not be needing to perform
as many defensive duties. But
England beat Sweden as recently as
November 1-0 if they can repeat
that scoreline this evening they
should be more than happy.
Trevor Steven is a former England
international who now works as a talent
scout and pundit.
FOOTBALL
COMMENT
TREVOR STEVEN
But the French and
Swedes put boot
into the Three Lions
FRIDAY 15 JUNE 2012
34
SPORT
cityam.com/sport
BY FRANK DALLERES
@cityam_sport
Hodgson issued a robust defence of his players ability following a barb from France coach Laurent Blanc and stinging criticism of their
Hodgson: Englands skill can
overlooked, but the Lyon player
has assisted a total of eight goals
during qualifying and the finals
more than any other player from
any team.
Data does back up
Swedens reputation as
strong in the heading
department, although
they are by no means
the aerial titans of
popular wisdom.
Of the 51 European
nations involved in the
Euro 2012 qualifiers,
Hamrens side were
ranked eighth in terms of
headed duels won, with 57.7 per
cent. France, who were the
most dominant in the air
with 73.0 per cent, Italy,
Spain and even Scotland
were placed higher.
Similarly, Sweden were
among the top 10 for
headed goals, having nodded
home four times
during the
qualifiers, but
some way off the
most prolific,
Croatia, who
registered
with nine
headers.
England
would still
be advised
to keep the ball on
SWEDEN have long been known
for their durability and aerial
prowess but under Erik Hamren
have been praised for casting
aside the shackles of the
safety-first tactics of
predecessor Lars
Lagerback in favour of
a more ambitious
approach.
In fact analysis shows
that the Scandinavians
have steadily increased
the number of shots per
game over the past decade,
from 5.25 at the 2002 World Cup
to 6.67 at Euro 2008 and seven in
Mondays 2-1 defeat to
Ukraine. In qualifiers, albeit
against some weaker sides,
they registered an average
of 8.55 shots per match.
The Castrol Edge
Performance data also
highlights the relatively
unheralded threat of
attacking
midfielder Kim
Kallstrom.
In a team often
overshadowed
by mercurial
forward
Zlatan
Ibrahimovic,
Kallstrom
could be
35
Ireland are first to be knocked out of Euro
2012 after losing 4-0 to champions Spain
cityam.com
FRIDAY 15 JUNE 2012
8
Total of assists by
Kim Kallstrom in
qualifying and
finals
little bit more ambitious and get at
the Swedes a little bit more.
We are confident if we reach the
same level of performance itll be
enough for a victory.
All 23 England players trained yes-
terday, with Hodgson expected to
stick largely with those who earned a
draw in their opening match in
Donetsk.
mentality from ex-Sweden star Jonas Thern
Ukraine 1 1 0 0 2 1 3
England 1 0 1 0 1 1 1
France 1 0 1 0 1 1 1
Sweden 1 0 0 1 1 2 0
GROUP D
TEAM PLD W D L F A PTS
Kallstrom at heart of
more attacking side
match Europes best
Not so Swede:
Last meetings
in big games
The Euro 92 hosts knocked England out
after Tomas Brolins infamous goal, while
striker Gary Lineker was controversially
subbed in his last international game.
Euro 1992 England 1 Sweden 2
England were unconvincing, despite
taking the lead through Sol Campbells
24th-minute header. Swedens Niclas
Alexandersson equalised from 20 yards.
World Cup 2002 England 1 Sweden 1
A close game best remembered for Joe
Coles stunning 35-yard volley and
Michael Owens horrific knee injury.
England also twice conceded the lead.
World Cup 2006 England 2 Sweden 2
BY FRANK DALLERES
the ground if they
want to prosper,
however. They
were ranked 28th
for aerial duels
won with just
50.3 per cent and
only scored twice
with headers on
their way to
Poland-Ukraine.
Find out if your
team has the
strength to perform
at Uefa Euro 2012
by visiting
castroledge.com/euro
2012
Euro 2012: Page 33; Redknapp latest: Page 32; US Open golf: Page 31
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England Expects: 100bngamble To Save Uk Economy

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EMERGENCY measures to try to kick start an

economic recovery were announced by Sir

I should be concerned but I

ARE YOU WORRIED

HOW WELL IS ATKINS

WILL WALLIS NUMIS

JOE BRENT LIBERUM

CHRIS BAMBERRY PEEL HUNT

8Jun 11Jun 13Jun 14Jun 12Jun

and they certainly arent getting any

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