Cityam 2012-10-26

BUSINESS WITH PERSONALITY
BUSINESS WITH PERSONALITY

Merger talks
for historic
publishers
PEARSON revealed yesterday it is
in talks with German media
powerhouse Bertelsmann to
merge its book publishing arm
Penguin with Bertelsmanns
Random House.
A deal would see a combined
company worth around 2bn,
with Pearson likely to own a
minority share. The merger
would also create a company
with greater clout when
negotiating with technology
giants such as Amazon and Apple
over ebook royalties.
The FTSE 100 firm, which also
owns the Financial Times, said:
Pearson confirms that it is
discussing with Bertelsmann a
possible combination of Penguin
and Random House. The two
companies have not reached
agreement and there is no
certainty that the discussions
will lead to a transaction.
Bertelsmann did not comment.
Analysts warned that the deal
could create competition
worries, as the joint firm would
control more than a quarter of
book sales in some markets.
The regulatory issues would
not be impossible to overcome
but there might be some
problems, Ian Whittaker, a
media analyst at
Liberum Capital,
said, pointing
out that
Penguin is
currently
embroiled in
a dispute
with the US
department
of justice over
fixing ebook
prices.
UK BOUNCES BACK INTO GROWTH AFTER SECOND RECESSION
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
60
70
80
90
100
110
120
130
140
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
100=2009average SERVICES
CONSTRUCTION
TOTAL
PRODUCTION
GDP GREW 1.0%
BETWEEN THE 2ND & 3RD
QUARTERS OF 2012
GDP
IS COMPLETELY FLAT
COMPARED TO THE 3RD
QUARTER OF 2011
THE BANK of Englands next round of
money printing could be put on hold,
analysts said yesterday, after new GDP
figures showed the UKs economy
grew well above expectations in the
third quarter.
GDP grew by one per cent in the
third quarter, its fastest quarterly
growth rate for five years, data from
the Office for National Statistics (ONS)
revealed yesterday, well above consen-
sus estimates of 0.6 per cent growth.
And the unexpectedly high rise
could affect the Bank of Englands
decision on whether or not to expand
its quantitative easing programme
when the last tranche of asset purchas-
es comes to an end in November even
though most economists still believe
the UK faces a bumpy ride.
The GDP result is consistent with
my forecast that the economy would
regain momentum during the course
of 2012 in lagged response to faster
real money supply growth since late
2011, said Hendersons Simon Ward, a
critic of ultra-loose monetary policy in
the UK. This [also] supports the fore-
cast that the MPC will pass on more QE
at its 8 November meeting, barring
external calamities.
And RBSs Ross Walker put the
chance of another round of QE in
November now at just 40 per cent,
down from 70 per cent only last week.
Before the release of the monetary
policy committee (MPC) minutes, the
chance of a new bout of QE was 70 per
cent, Walker told City A.M.
seen since the height of the pre-crisis
boom, analysts were quick to play the
figures down, drawing attention to the
abundance of one-off factors that may
have contributed.
The ONS estimated a 0.2 percentage
point boost to growth from counting
all Olympic ticket sales within the
period. But a bigger factor, according
to analyst estimates, was the bounce-
back from the extra bank holiday held
for the Queens Jubilee, thought to be
worth about half of the overall one per
cent growth.
Even after these two one-off factors,
the underlying picture was of around
0.3 per cent growth, a bright statistic,
especially since commentators had
predicted decline.
Still, analysts said the better than
expected growth had little effect on
their overall projections, and many
predicted a return to decline in the
fourth quarter leading to a flat 2012 as
a whole.
The growth doesnt materially
change our forecasts, said Item Club
economist Andrew Goodwin. The
UK faces a slow grind towards recov-
ery.
Analysts still expect 2013
to see sluggish growth,
before a return to trend
growth in 2014 at the
very least.
www.cityam.com FREE
After the minutesthe probability
of new purchases was 60 per cent.
Then Sir Mervyns speech [on
Wednesday], which was equivocal and
even-handed on QE despite his reputa-
tion as an ber-dove, brought the
chance down to 50 per cent, Walker
said. So the decision was on a knife
edge going into the GDP release.
Other analysts agreed that the sur-
prisingly good GDP numbers could
affect the MPCs decision.
Combined with expected rises in
inflation due to climbing energy bills
and the near-tripling in tuition fees,
the unexpectedly high growth could
contribute to a soul-searching debate
amongst the MPC, Investecs Philip
Shaw told City A.M.
Sir Mervyn this week sug-
gested the Bank would have
to think long and hard
before undertaking further
QE, said Charles Davis of
the Centre for Economics
and Business Research. In
the short term the GDP data
undermine the case for more
QE, yet he added that the
UKs economic fundamen-
tals should not rule out
QE entirely.
Though the headline
number revealed
growth at a pace not
BY JAMES TITCOMB
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ISSUE 1,747 FRIDAY 26 OCTOBER 2012
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27/08/12 til 30/09/12 is 128,785
BOND IS BACK
OUR VERDICT ON THE LATEST 007 OUTING
APPLE BITTEN AS
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Pages 3&4
ALLISTER HEATH,
NEWS: Page 2

ANDREW SENTANCE:
The Forum, Page 21

The figures will be a
boost to chancellor
George Osborne
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
DAVID Cameron said yesterdays
return to economic growth shows
the country is on the right track,
as the coalition celebrated a one per
cent rise in GDP.
The Prime Ministers comments
were echoed by George Osborne,
who said the figures are a sign the
economy is healing.
Weve cut the deficit by a quarter,
over a million new jobs have been
created in the private sector, infla-
tion is down, and the economy is
growing, the chancellor added.
By continuing to take the tough
decisions needed to deal with our
debts and equip our economy for the
global race were in, this government
is laying the foundations for lasting
prosperity.
The coalition governments eco-
nomic policy is based on a political
gamble that short-term unpopulari-
ty will be irrelevant if the country
has returned to sustained growth by
the time of the 2015 general election.
Stephen Williams, the Lib Dem
Treasury spokesperson, said his
party had always known it would be
a choppy road to recovery but they
needed to create the right condi-
tions to support growth and deal
with the deficit.
Although Labours shadow chan-
cellor Ed Balls welcomed the figures
UCL wins Stratford campus approval
University College London has won initial
approval for a 1bn development in east
London that will double the space
occupied by the elite higher education
institution. Newham Council has approved
plans for UCL Stratford, a 23-acre complex
next to the Olympic Park. As well as being
a huge regeneration project in one of
Londons most deprived boroughs, the
new plan is intended to help UCL maintain
its reputation as a world-leading
university. The campus will cover the area
of 705 homes, 318 of which are occupied.
Japan grapples with its fiscal cliff
The Japanese finance ministry will hold
crisis talks with bond dealers in the
worlds largest government debt market
today, amid growing fears about the
impact of a political stand-off on the
nations finances.
Hitachi frontrunner to win Horizon
Japanese engineer Hitachi is the firm
frontrunner to acquire Horizon, the joint
venture planning to build nuclear reactors
in the UK. A Hitachi-led consortium is in
advanced talks with Horizons owners
RWE and Eon.
Vodafone casts doubt over 4G
Days ahead of EEs 4G service going live,
Vodafone is claiming the four walls of the
home or office could play havoc with the
signal, because of the frequencies its
competitor is using for the launch.
Premier Foods to sell Hovis
Hovis, the brand made famous by the
Boy on the bike commercial of the early
seventies, has been put up for sale by
Premier Foods, its owner.
ExxonMobil chief assassinated
A British executive for the oil company
ExxonMobil has been shot dead in front of
his wife in an assassination-style killing in
Brussels. The executive was shot three
times, once as he lay on the ground.
OFT intervenes over plum deal
The OFT announced it was suspending its
duty to refer to the Competition
Commission the acquisition of the food
firm Brookes Avana by Boparan Holdings.
DreamWorks Chairman Resigns
The chairman of DreamWorks Animation
has resigned, having served since the
studio became a public company in 2004.
Roger Enrico will be replaced by board
member Mellody Hobson.
Nintendo Slashes Profit Outlook
Nintendo slashed its fiscal-year profit
outlook by 70 per cent just weeks before
launching the company's first new home
console in six years
POWERFUL Indonesian family the
Bakrie brothers could offer coal
tycoon Samin Tan compensation
for his soured $1bn (620m)
investment in London-listed miner
Bumi.
The move is the latest blow for
troubled London-listed Bumi,
which aimed to be the world's
biggest thermal coal exporter but
may be left as a shell holding
company with no operating assets if
both Indonesian partners pull out.
No details were given on the size
of the potential compensation.
Alexander Ramlie, chief
executive of Tans coking coal
miner PT Borneo Lumbung Energi
that holds the Bumi stake, said he
hoped the investment would be
fully compensated and discussions
were underway to dissolve the
partnership.
Yes, in principle, we believe they
are in agreement to provide us
with some financial compensation
because otherwise we won't agree
to dissolve the partnership and
they cant fulfill their proposal to
Bumi Plc, Ramlie told a news
conference in Jakarta. So thats
the value that we have that the rest
of minority shareholders in Bumi
Plc dont have, so they cant expect
to get the same value as us.
No agreement has yet been
reached, said a Bakrie spokesman.
Possible payout
for Tan over $1bn
Bumi investment
2
NEWS
BY CITY A.M. REPORTER
BY JAMES WATERSON
To contact the newsdesk email news@cityam.com
I
T is not every day that the British
economy gives us cause to
celebrate, so we should all make
the most of yesterdays excellent
third quarter GDP growth figures.
The economy bounced back by one
per cent compared with the second
quarter, which was very good going
by any measure.
The figures need to be treated with
caution, of course; these early ver-
sions are based on incomplete data
and are endlessly revised. The compo-
sition of the growth what part came
from services, manufacturing, or con-
struction is subject to even greater
change. But one thing is clear: the
economy did bounce back, the dou-
ble-dip recession is over and it was a
good day for George Osborne and a
bad one for Ed Balls.
The strong rebound confirms that
the second-quarter fall was entirely
EDITORS
LETTER
ALLISTER HEATH
Great boost to the economy but public still feeling pain
FRIDAY 26 OCTOBER 2012
due to the extra bank holiday. As
Simon Ward of Henderson points out,
the underlying economy contracted
in only two quarters the fourth
quarter of 2011 and the first quarter
of 2012. GDP fell by 0.4 per cent and
0.3 per cent in those two quarters, if
the latest versions of the official sta-
tistics are to be believed, or only 0.2
per cent both times excluding oil and
gas production.
The economy remains around three
per cent smaller than it was at peak
but as Andrew Sentance points out on
p21, non-oil GDP is down by less than
overall GDP. This makes a difference:
North Sea oil and the rest of the econ-
omy operate very separately; oil and
gas output does of course have an
impact on UK Plc but fluctuations in
output have no effect on the living
standards of 99.9 per cent of the pub-
lic at large.
There are, of course, important
caveats. The economy bounced back
in July-September 2012, compared
with April-June 2012, but it remains
the same size as it was in July-
September 2011. Stagnation is better
than shrinkage, of course, but zero
growth is still a very poor result.
Given that the population keeps
going up, GDP per capita fell slightly
over the past 12 months.
The ONS warned this week that net
national income per head in the sec-
The Bank of England may now
pause its quantitative easing (QE) pro-
gramme when it meets in November.
That, at least, is the view of many in
the City Im not yet convinced.
Fourth quarter GDP is likely to be
weak as is growth next year, which
means the Bank may feel justified in
continuing QE. Paradoxically, for
George Osborne, whose budget deficit
so far this year is up by four per cent,
the end of QE would be a nightmare.
It would force him to genuinely tap
the markets for his gilts without any
support from the Banks giant bond-
buying machine. Good news on
growth would turn into bad news for
him on deficit financing. We shall
soon find out but my bet would still
be for more QE next month.
ond quarter had collapsed 13.2 per
cent below the first quarter of 2008.
Even if that decline has now been cut
to 12.2 per cent and that isnt clear
given that GDP and NNI are different
measures the collapse remains
cripplingly vast. And yesterdays good
news on output will do nothing to
reduce the feel-bad factor caused by
real wages that are down five per cent
since 2008, house prices that are
down by a third in real terms across
the UK (according to Halifax), slashing
the wealth of the two-thirds of house-
holds that own one (though helping
those who want to buy), and the reali-
ty that sterling has lost 14 per cent of
its purchasing power since the start of
the crisis, according to the retail price
index. Most people have been getting
poorer and a slight improvement in
GDP wont be enough to reverse this
living standard crisis.
he insisted it is no time for compla-
cency and wishful thinking, while
pointing out that much of the growth
was with the help of the Olympics.
Todays figures show that underly-
ing growth remains weak and that our
economy is only just back to the same
size as a year ago, he added.
Meanwhile David Cameron contin-
ued to face criticism after he apparent-
ly let slip that the GDP figures would
be positive in a parliamentary debate
on Wednesday.
During Prime Ministers Questions
he said the good news will keep com-
ing, having received an advance copy
of the market-sensitive data 24 hours
before publication.
While almost all observers had
expected a return to growth, early
release of the data is against the law.
Downing Street insist that Cameron
was making a general point about the
economy. But last night Andrew
Dilnot, chair of the UK Statistics
Authority, wrote to the Prime Minister
to ask for the rules on pre-release
access to be changed because the cur-
rent arrangements could undermine
public confidence in official statistics.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
IN BRIEF
S&P downgrades French banks
nRatings agency Standard & Poors
cut the credit ratings of several French
banks including BNP Paribas last night,
warning they were becoming more
exposed to a potentially protracted
recession in the Eurozone. S&P cut its
counterparty credit ratings on BNP and
two smaller, unlisted banks; it also cut
the outlook on ten banks including
Societe Generale and Credit Agricole to
negative from stable. S&P cited
economic risks in France.
HS2 compensation unveiled
nThe Department for Transport
yesterday revealed compensation
packages for homeowners who will be
affected by the forthcoming High
Speed Two railway. The government
will pay the full un-blighted value of
homes within 60m of the route,
topped-up with an additional 10 per
cent payment. Residents who live
within 120m of the route will be able to
apply for voluntary purchase, though
this will only apply in rural areas.
Xstrata investors to vote on deal
nXstrata shareholders will vote on the
56bn merger with Glencore on 20
November, it was announced yesterday.
The investor meeting, which will take
place 10 months after the original deal
was announced, will see shareholders
vote on the proposed deal of 3.05 new
shares for every Xstrata share. Under a
new voting structure, Xstrata
shareholders will be able to vote in
support of the deal, but object to the
retention plan for key managers.
Cameron cheers GDP as
sign UK is on right track
SIR Richard Branson has played
down rumours that Virgin Money is
at the forefront of a bidding war for
316 bank branches put back on the
market by RBS.
The founder of Virgin Group told
City A.M. yesterday that while Virgin
Money could look at the assets,
the bank is singing, and its doing
great... I think they could just
continue to expand organically.
Virgin Money, which took over
Northern Rock last year, now makes
one in three new mortgage
approvals in the UK, he added.
RBS is selling the branches as
part of its 2008 bailout deal.
Santander dropped its 1.7bn offer
last week after years of
negotiations, citing ongoing
delays and... uncertainty.
Ive read about RBS
branches being up
for sale and its
not something
Virgin Money
needs to do, Sir
Richard said.
My feeling at
the moment is
that organic
expansion
makes the
most
sense, he
added.
Branson plays
down interest
in RBS branches
BY MARION DAKERS IN DELHI
HYPE surrounding Apples latest
products meant the company record-
ed a fall in sales of the iPad and fair-
ly flat iPhone retail figures in the
three months to October.
In a period that counted just two
weeks of iPhone 5 sales and led up to
this weeks launch of the iPad mini
and fourth-generation iPad, Apple
sold 27m iPhones and 14m iPads.
Sales in the period hit $36bn
(22.3bn), which was a 27 per cent
increase on the same period last year
and broadly in line with expecta-
tions. However, earnings per share
were somewhat below forecasts,
despite profit rising from $6.6bn to
$8.2bn year-on-year.
Chief executive Tim Cook warned
of reduced profit margins over the
next few months due to the compar-
atively lower price of the iPad mini
and higher production costs associat-
ed with the new iPhone 5.
However, he predicted revenue of
$52bn in the next three months,
which would make a record quarter
for Apple.
The firm has updated its entire
Apple sales hit
wall ahead of
new launches
BY JAMES TITCOMB
product line in the last few weeks.
Its going to be an incredible holi-
day season, Cook said, adding that
he was not worried about renewed
competition from tablets such as
Microsofts Surface.
It sounds like a fairly compro-
mised, confusing product, Cook said.
I suppose you could design a car that
flies and floats but I dont think you
could do all those things well.
The companys shares, which had
hit a record price of $700 in
September, briefly fell below $600 in
after-hours trading last night before
rising to around $607 just below its
Wall Street closing price.
We were happy with the 14m iPad
sales in the quarter. It exceeded our
expectations, Apples chief financial
officer Peter Oppenheimer said. But
as the summer went on, the rumours
were pretty rampant about the
iPhone and iPad [mini].
Beyond its two most important
products, Apple posted a one per cent
rise in sales of its desktops and lap-
tops. This bucked falling Windows PC
sales, which have slumped eight per
cent year-on-year in the quarter,
according to research from Gartner. Branson favours organic expansion
AMAZON, the online retailer, was
hit by a $274m (170m) net loss
yesterday as it was dragged into
the red by struggling online
business LivingSocial.
Despite an impressive 27 per
cent increase in third quarter
sales, the firms investment and
capital expenditure programme
cancelled out $13.8bn of sales to
incur a bottom line loss equal to
60 cents a share.
This time last year the firm
made $63m of profits.
Amazon, which yesterday put its
Kindle Fire HD device on sale in
Blow for Amazon as its third
quarter losses rise to $274m
BY MICHAEL BOW the UK, reported a $169m balance
sheet loss related to LivingSocial,
an online coupon deal service.
Amazon poured $175m into
LivingSocial nearly two years ago,
but the book value of its
investment dropped in the third
quarter, leading to a loss
equivalent to 37 cents per share.
The firm said the next quarter
would fare better, with net sales
expected to be between $20.3bn
and $22.8bn. This equates to
growth of between 16 per cent and
31 per cent compared to the
fourth quarter of 2011. Income is
expected to be as high as $310m or
as low as a $490m loss.
3
NEWS
cityam.com
Amazon boss Jeff Bezos, 48, left his job at a hedge fund to set up the retailer in 1994
MICROSOFT last night took the
wraps off Windows 8, the most
radical redesign in the operating
systems history, in a bid to reignite
consumer interest in the company
ahead of todays launch.
Steve Ballmer, the technology
giants chief executive, also showed
off the Surface, Microsofts first
tablet computer, at yesterdays
event in New York.
We have reimagined Windows
and the result is a stunning lineup
of new PCs, Ballmer said
Windows 8 and the Surface go on
sale today, and demand for the
software is expected to be strong,
although the tablet computer one
of Microsofts few forays into
hardware has seen momentum
somewhat spoiled this week.
Apple announced an iPad mini
and a revamped iPad on Tuesday,
while Amazon released its
touchscreen Kindle Fire in the UK
for the first time yesterday.
Windows 8 is the first major
departure from a tried-and-tested
formula from Microsoft since it
unveiled its Windows 95 software
17 years ago. It features a new tile-
based interface and support for
touchscreen computers, with a
similar design to its tablet and
smartphone software.
The Surface will cost as little as
399 when it starts retailing today.
Microsoft pins
its hopes on
Windows 8
BY JAMES TITCOMB
PROFITS plunged at Santander as ever
more Spanish loans turned bad in the
countrys ongoing recession, the
banks third quarter results showed
yesterday.
The Spanish banks UK arm per-
formed more strongly, though it too
was slowed by shipping loan prob-
lems, increased provisions against cor-
porate debt it bought in the credit
crunch, and a cost from its aban-
doned bid to buy hundreds of branch-
es from RBS.
The groups profits plunged 66 per
cent on the year, falling from 5.3bn
(4.3bn) in the first nine months of
2011 to 1.8bn in the same period of
this year.
Provisions for bad loans jumped 30.2
per cent, from 7.3bn a year ago to
9.5bn so far this year, with weak per-
formance in Spain, Brazil and Chile
particularly weighing on the group.
In the UK, pre-tax profits increased
four per cent to 1.1bn in the first
nine months of the year.
Small business lending increased 20
per cent, first time buyer mortgages
rose 22 per cent and current account
Santander hit
by rise in bad
Spanish loans
BY TIM WALLACE
balances jumped 20 per cent, while
the banks core tier one capital ratio
hit 12.8 per cent.
But the unit struggled in some other
areas.
It had to make provisions of 335m
this quarter on corporate loans it
acquired from Alliance and Leicester
in the financial crisis, on top of the
368m provision in the first half of
this year.
And the dropped bid to buy 316 RBS
branches negotiations had been run-
ning for years before Santander pulled
out of the deal this month cost
52m.
The groups shares dipped 0.59 per
cent yesterday, slipping to 5.74.
Banco Santander SA
25Oct 19Oct 22Oct 23Oct 24Oct
5.70
5.75
5.65
5.80
5.85
5.90
5.95
6.00
5.74
25Oct
SWISS banking giant Credit
Suisse saw profits plunge on debt
charges and tougher regulations,
as it revealed its third quarter
results yesterday.
Profits came in at SFr254m
(168.6m) in the three month
period, down 63 per cent on the
same period of last year and
prompting the bank to increase
its costs savings target from the
SFr3bn announced in July to
SFr4bn.
In a bid to make the savings by
2015 it is already in the process
of cutting 3,500 of its 48,400
Credit Suisse plans new round
of job cuts as profits collapse
BY TIM WALLACE workers and confirmed more
would have to go to hit the
target, but did not give an exact
figure on the new job cut plans.
The bank took a hit of just over
SFr1bn from adjustments of the
value of its debts, while asset
management fee revenues fell 14
per cent on the year to SFr438m.
But revenues did increase in
the investment banking arm,
soaring 66 per cent on the year to
SFr3.3bn, driven by rising bond
trading activity. In particular the
bank saw greater demand for
higher yielding products.
Shares edged up 0.09 per cent
on the day.
4
NEWS
cityam.com
Chief executive Brady Dougan said Credit Suisses efficiency drive was going well
BARCLAYS is planning a gradual
realignment of its board in the
coming months, with some of the
longer-serving members preparing to
make way for fresh blood.
The bank has no set limit or target
size for the board and chairman Sir
David Walker is known to be on the
lookout for new talent.
The bank is shifting its focus
towards retail banking and away
from the investment arm built up
by ex-chief executive Bob Diamond.
But investment boss Rich Ricci is
unlikely to leave, as chief Antony
Jenkins has backed him openly.
Barclays declined to comment.
But a source close to the bank said
some directors who have served the
longest may be the next to leave.
Looking back at appointments
over the last decade, some of the
directors have been around for a
while, so you might expect they are
ready to move on to their next
challenge, the source said.
Although no names have been
openly floated, National Audit Office
boss Sir Andrew Likierman was
appointed in 2004, while former
Cadbury chairman Sir John
Sunderland was appointed as a non-
executive in 2005 and Enel SpA chief
Fulvio Conti joined in 2006.
Barclays looks
to bring fresh
talent to board
BY TIM WALLACE
REGULATORS need more and better
staff to have any chance of really
checking if banks are treating cus-
tomers well, top official Martin
Wheatley told MPs and peers
yesterday.
And he rowed back on earlier com-
ments that he will shoot first and
ask questions later when regulating
potentially dodgy bank products,
admitting that regulators will have
to wait for customer complaints
before investigating.
The head of the incoming Financial
Conduct Authority (FCA) told the
parliamentary commission on bank-
ing standards (PCBS) he will rely
on banks predicting the regula-
tors questions and designing
products accordingly, rather
than each one being individual-
ly approved.
I try not to take a view
of products as
good or bad
some are very
Wheatley says
bank watchdog
needs new staff
BY TIM WALLACE
complicated and difficult to under-
stand, but for the right audience they
may be the right product, Wheatley
said. But even if just one in a hundred
products are referred to the FCA,
Wheatley said it would need greater
expertise to cope.
We need to either upgrade or train
our people, hire staff with a bit more
battle scars, who are prepared to use
their judgement, he said.
Wheatley also revealed the lengthy
process of launching a new bank will
get easier in a review out next month.
Currently anyone wanting to set up
a bank has to prove they have the
staff, systems and capital before get-
ting a licence but they often
need a licence to raise the
capital.
Instead, provisional licens-
es could be granted in small-
er steps through the process,
Wheatley said, to open up the
industry to new entrants.
Martin Wheatley wants to
stop consumers losing out
FORCING creditors to take losses
up front with a bail-in mechanism
could help save failing banks and
stop a wasteful liquidation, Bank
of England deputy governor Paul
Tucker said yesterday.
And bailing-in by the deposit
insurer could further help protect
the valuable parts of a failed bank,
he told an industry conference.
A bail-in process would see a
failed banks creditors take losses
on their assets before formal
bankruptcy proceedings, realising
losses more quickly, allowing the
Tucker broadens bank bail-in
proposals to deposit insurance
BY TIM WALLACE healthy parts of the institution to
be sold off and reducing the
chance of a taxpayer bailout.
Rather than a deposit insurer
having to wait to discover its
losses until the end of the process
of a potentially destructive
realisation of a banks assets, it
would hear up front how much it
had lost, said Sir Mervyn Kings
deputy, who hopes to take the top
job at the Bank next year.
That should reduce the
insurers losses, speed up the
process and could leave it with a
healthy chunk of bank to sell at a
later date.
5
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cityam.com
Paul Tucker hopes to take control of prudential regulation by becoming Bank governor
BOTTOM
LINE
MARC SIDWELL
Its too late to buy a parachute when youre in mid-air
A
MERICA is teetering on the
edge of a so-called fiscal cliff,
which falls at the end of this
year. If its politicians need
more encouragement to avoid falling
over it, perhaps they should take a
look at the damage already wrought
by another metaphorical precipice:
the patent cliff.
Three pharmaceutical firms
yesterday saw their revenues
brought down by the expiry of key
intellectual property: Sanofi,
Novartis and AstraZeneca, the UKs
second-biggest drugmaker, which
suffered most of all. AstraZeneca
acknowledged that the revenue
decline in the third quarter
reflected the ongoing effect from
the loss of exclusivity on several
brands, with antipsychotic
Seroquel IR a particular drag in the
US. Global revenue fell to $6.682bn
(4.14bn), down 15 per cent at
constant exchange rates and 19 per
cent on an actual basis.
The problem for AstraZeneca is
that it has a lot further to fall. Pascal
Soriot has only been in post as chief
executive since the start of October,
and he cant be expecting a quiet
life. The next five years could witness
up to half the firms current revenue
falling off the patent cliff.
Thats tougher for AstraZeneca
than for some others, because it
seems unwilling to look for
alternative revenues outside of
prescription drugs. But the very
existence of the patent cliff is in part
a sign that blockbuster medicines
are proving harder and harder to
create. Whether thats due to the
loss of low-hanging fruit or the
growing height of the regulatory
hurdles that must be jumped, it
makes Soriots determination to
restore the company to growth and
scientific leadership a very
courageous, or, less generously, a
high-risk strategy. The only obvious
way to make it work, as Soriot has
acknowledged, is a strategy of
acquisitions rather than just relying
on inspiration to strike internally.
But thats expensive.
Its bad for everyone if the big
pharmaceutical firms have to turn
from bleeding-edge research to
selling shampoo and face cream to
make ends meet. But it is doubtful a
firm can escape a hard patent cliff
landing by trying to buy itself a
parachute in mid-air.
SPOTLIGHT ON SANTANDER
LIKE a tabloid love rat, Santander UK
was trying to make a good
impression yesterday after having
left RBS at the altar in its failed
attempt to purchase 316 of its
branches. That process wasnt helped
by having to admit it had set aside
52m to cover the expense of wooing
Stephen Hesters banking group.
However, Santander UK looks
positively rosy next to its parent,
Spains Banco Santander, which
yesterday reported a 94 per cent fall
in its net profits. Santander UK is
not exposed to Banco Santanders
bad property loans in Spain. But
with its long and short term ratings
placed on Credit Watch Negative by
Standard & Poors, it still faces
challenges of its own.
marc.sidwell@cityam.com
DEBENHAMS yesterday revealed it is
to open 17 UK stores next year and
announced its first Christmas cam-
paign in six years as the department
store group posted a 1.6 per cent rise
in like-for-like sales.
Chief executive Michael Sharp said
the group plans to lure shoppers and
bolster sales during the crucial
Christmas trading period with a tele-
vision, print and online advertising
campaign, launching next month.
The announcement came as the
retailer, which ranks behind rival
John Lewis in terms of annual sales,
reported a 4.2 per cent rise in pre-tax
profit to 158.3m in the year to 1
September.
The overall performance for the
year was a very creditable perform-
ance given how challenging it was,
said Sharp, adding that the group
had also grabbed market share from
rivals across all categories, particu-
larly in the 12 weeks to 2 September.
Gains in womens clothing were
Debenhams to
open 17 stores
as sales pick up
BY KASMIRA JEFFORD
particularly pleasing because that
market is notoriously competitive,
he said.
The group revamped 18 of its core
UK stores in 2012 and aims to refur-
bish a further 30 this coming year,
including its flagship site on Oxford
Street. It aims to open 17 stores over
the next five years, which could gen-
erate 150m worth of sales.
Sharp said yesterday that
Debenhams UK presence was still
immature and said there were a
total of 70 markets it has targeted for
new openings in the future.
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cityam.com
ASOS boss Nick Robertson
yesterday dismissed talks of a bid
by Amazon after the online fashion
firm posted soaring sales abroad.
He poured cold water on
speculation that he had met with
Amazon boss Jeff Bezos saying I
have not spoken to Amazon in
three years.
The retailer, which has changed
its year-end from March to August,
said it has made a pro forma
underlying pre-tax profit of
Asos boss denies bid talks as
the retailer posts soaring profit
BY KASMIRA JEFFORD
44.5m up by 40 per cent
compared with the same period
last year. Group revenues rose 37
per cent to 553m, driven by a 64
per cent jump in international sales
to 333m. UK retail sales also
proved resilient, up 10 per cent to
205m.
Robertson plans in 12 months to
have launched language websites in
Russia and China as well as
warehouses to hold stock so that
customers can get their deliveries
faster. Russia and China currently
account for seven per cent of sales.
Debenhams PLC
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112
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118
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THE FTSE 100 yesterday saw another female director added to its ranks after Whitbread
announced it has appointed Louise Smalley, group human resources director, as an
executive director. Smalley, who will join the board on 1 November, has worked for the
Costa owner for 13 years and was promoted to group human resources director in 2007.
WHITBREAD APPOINTS SMALLEY TO ITS BOARD
EVERCORE Partners adjusted profit fell in
the third quarter as a difficult mergers and
acquisitions market weighed on its revenue but
the boutique investment bank said it remains
cautiously optimistic about the economic
environment. Evercore said investment banking
revenue fell seven per cent to $128.2m (79.5m).
Evercore suffers in weak market
THE NEW York Times posted worse-than-
expected results despite an increase in
circulation revenue. A 7.4 per cent rise in
revenues from circulation, boosted by its digital
subscription plan, could not offset a persistent
slump in advertising sales. The results sent shares
plummeting 22 per cent in trading last night.
New York Times down 22pc
US corporate results round-up
COLGATE-PALMOLIVE, which makes Colgate
toothpaste, posted higher quarterly profits, as
an increase in pricing offset sales falls. The firm
saw third quarter profits of $654m (405.7m)
versus $643m last year. Pricing was up three per
cent and volumes rose two per cent. It also plans to
reduce headcount by six per cent by 2016.
Colgate-Palmolive brushes up
SPRINT Nextel, the wireless telecoms firm,
posted a third-quarter loss that was narrower
than Wall Streets expectations on lower
marketing costs but warned that its network
upgrade has been delayed by about three months.
Sprints net loss widened to $767m (475.8m) from
a loss of $301m in the year-ago quarter.
Sprint Nextel losses widen
EUROPEAN insurance giant AXA
yesterday said its revenues grew by 1.3
per cent in the first nine months of
2012, driven by improvements in its
property and casualty business.
Headline income was 68.4bn
(55bn) for the first nine months of
2012, up from 65.9bn for the same
period last year.
However the French firms accounts
benefited from the depreciation of
the euro against other major curren-
cies, boosting the impact of overseas
earnings.
Income from its asset management
business slumped by 5.7 per cent on a
comparable basis but the euros weak-
ness means the firm can boast that
revenues actually rose by 0.7 per cent
to 2.46bn.
Top line trends for the first nine
months of 2012 are overall in line
with those observed over the previous
quarters. Growth is driven by protec-
tion & health and property & casualty,
which are less sensitive to financial
markets, said Denis Duverne, AXAs
BY JAMES WATERSON
deputy chief executive.
Property & casualty revenue growth
maintained its momentum in most
countries driven by our disciplined
underwriting policy, both in terms of
rates and selectivity, and higher vol-
umes.
New business grew by more than 10
per cent in the US and Asia Pacific
region, offsetting declines in Northern
Europe and the UK.
The company also said its regulatory
Solvency I ratio, a measure of financial
strength, had risen to more than 220
per cent in September, up from the
207 reported three months ago.
8
NEWS
cityam.com
INSIDE
TRACK
W
ITH all the nervousness
about governance issues at
Russian companies wishing
to list their shares in
London, and with Nat Rothschilds
London-listed Indonesian venture
Bumi seemingly ending in tears,
now is perhaps not the best time for
the London Stock Exchange to be
hosting a conference about the
opportunities in Africa for investors.
In theory African companies, due to
the very fact they are part of an
emerging economy that has rudi-
mentary rules in place, bring with
them more than their fair share of
risks.
But there is something of a buzz
building up around the event, main-
ly because the continent looks set for
above average growth over the next
few years and London is fast becom-
ing the go to place for African busi-
nesses to raise money and list their
shares.
There is currently $70bn of market
capitalisation worth of African com-
panies now listed in London, which is
the largest concentration outside of
South Africa.
One of those companies present
next Thursday, Dangote Cement, is
headed for a London share listing in
the next few months which would
propel the company into the FTSE
100, with the group likely to be val-
ued at around 8bn.
Dangote, which is controlled by the
Nigerian billionaire Aliko Dangote, is
expected to strengthen its manage-
ment by appointing Tim Surridge,
formerly of professional services firm
KPMG, as its chief financial officer.
Surridges task, in the months ahead,
will be to bring all the reporting pro-
cedures up to a standard common
with other FTSE 100 groups. He will
be attending the LSE event along
with an audience that brings togeth-
er investors of all types.
The company is set to appoint an
independent chairman in the
months ahead, one strong enough to
stand up to the controlling share-
holder who will be selling down his
shareholding as part of the flotation.
Banks likely to act on any IPO
include JP Morgan, Morgan Stanley
and Goldman Sachs, although it
would not surprise anybody if one or
two smaller houses with special
African expertise were added at a
later date.
Nigeria might not be known for its
high standards of corporate gover-
nance but those on the Dangote
team are determined to get this right.
This would be a huge flotation.
Were flying the flag for Africa and
were determined this should go off
smoothly, even if that means we
might need more time for investor
education, said one of those working
on the float.
UBS BANKERS AWAIT GRIM NEWS
Earlier this year the Swiss-based
bank UBS issued a strong message
to the market that it was commit-
ted to its investment banking arm
by poaching star banker Andrea
Orcel from Bank of America Merrill
Lynch.
But in recent days the talk has
been all about the retrenchment of
the business, with 400 jobs expected
to go globally, possibly as part of a
bigger plan to de-emphasise invest-
ment banking.
The bank is currently ranked
tenth in the year to date in terms of
M&A revenues globally, according to
Dealogic, its lowest ranking to date.
Despite Orcel, it might have further
to fall. david.hellier@cityam.com
Follow me on twitter @hellierd
London looks to Africa to bolster flotation activity
DAVID HELLIER
FORD will stop making vans in
Britain next year, cutting 1,400
jobs on top of 4,300 to be axed in
Belgium as part of a plan by the
US car maker to stem European
losses expected to exceed $1.5bn
(929.7m) this year.
It is the fourth vehicle plant
closure in Europe announced
this year and comes just a day
after Ford itself said it would
shut its 48-year-old Genk plant in
Belgium by 2014, as part of a
wide-ranging restructuring
programme.
The company said the moves
would reduce installed vehicle
assembly capacity by 18 per cent,
with related gross annual savings
of $450-500m. Thirteen per cent
of its European workforce would
be affected by the restructuring.
Ford said despite the loss in
Europe, total company pre-tax
profit, excluding special items,
was better in the third quarter
than in the second and that over
the long term, it was aiming for
an operating margin of six to
eight per cent in Europe.
Analysts at Morgan Stanley
believe Ford is demonstrating
the vision and industrial
courage to make tough
decisions that will pay off long
term.
The US autos giant employs
11,400 at British sites which also
include Halewood, near
Liverpool, and Bridgend in South
Wales.
Axa SA
12.00
12.20
12.40
12.60
12.80
12.19
25Oct
AXA revenues
grow thanks to
new markets
Ford axes UK van plant to stem
losses as Europe crisis weighs
UNILEVERS quarterly sales growth
beat forecasts as demand for
cleaning and personal care
products in China helped the
consumer goods group outshine
larger rival Nestle.
The maker of Dove soap and Cif
cleaners shrugged off the worries
about slowing growth in China,
reporting a growth of 5.9 per cent
in the third quarter, ahead of a
consensus of five per cent and a
second-quarter rise of 5.8 per cent.
Emerging markets, which make up
55 per cent of sales, increased by
12.1 per cent in the period.
Unilever sales
beat forecasts
BY HARRY BANKS
ADVERTISING mogul Sir Martin
Sorrell blamed four grey swans for
a slowdown in global business yester-
day as his company WPP slashed fore-
casts for the second time this year.
Sir Martin said the Eurozone crisis,
political tensions in the Middle East,
sluggish growth in China, and the
state of the US economy were drag-
ging WPPs growth downwards.
The company said revenue is likely
to grow at between 2.5 and three per
cent this year. This is down from a 3.5
per cent prediction made at the end
of August and four per cent before
that. Shares fell just over 2.5 per cent.
There seem to be four grey swans,
grey because we know about them.
By definition, we do not know the
black ones, Sir Martin said.
He told City A.M. that the biggest
cloud hanging over his business was
uncertainty in America over the
countrys deficit, which is being
drawn out by the presidential elec-
tion. The American deficit has now
become the key issue rather than the
Eurozone, Sir Martin said. US busi-
nesses want Romney to win because
Ad boss Sorrell
says grey swans
affecting WPP
BY JAMES TITCOMB
he is more likely to deal with it but
even if he were to win there will still
be a deadlocked Congress.
WPP said revenue had grown 1.6 per
cent year-on-year to 2.5bn in the
third quarter. This was largely held
back by falls in western continental
Europe, which shrunk 8.6 per cent.
Sir Martin highlighted the UK and
Asia as promising areas, while digital
growth was above expectations. WPP
this year set a target of deriving 35-40
per cent of revenues from digital
operations in the next five years, but
Sir Martin said it was almost at 35 per
cent already. Id like to have done
more in digital because we would not
be reporting these numbers, he said. ODEY Asset Management yesterday
sharply increased its stake in Man
Group, taking a bold bet on a
fightback by the struggling
computer hedge fund firm.
Odey, founded by veteran fund
manager Crispin Odey and which is
known for its lucrative bet in 2009
on a recovery in Barclays shares, has
increased its stake in Man to 5.15
per cent, worth some 70m.
According to Thomson Reuters
data, Odey, previously owned 1.25
per cent of Man Group.
Odey ups Man
Group stake
BY MICHAEL BOW
cityam.com
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NEWS
WPP PLC
780
800
820
840
860 p
793.50
25Oct
HARRY Potter publisher
Bloomsbury has seen profits
almost halve in the last six months
as sales of its childrens and
educational books have suffered.
The firm also said sales of adult
books had been lower than
expected, due to the market being
dominated by Fifty Shades Of Grey
and the disruptive effect of the
Olympics.
Chief executive Nigel Newton
said yesterday that trading during
the period had been soft, but
said the firms results tend to be
weighted towards the second half
Fifty Shades and Olympics harm
Harry Potter printer Bloomsbury
BY JAMES TITCOMB of the financial year due to more
people buying books during the
Christmas period.
Bloomsburys shares fell around
five per cent yesterday as it posted
a fall in pre-tax profit from 1.5m
in the period last year to 850,000.
However, the firm was
encouraged by growth in ebook
sales. Bloomsbury made 4.5m
from ebooks during the period.
This is up 89 per cent on last year
and now accounts for 10 per cent
of the publishers 43.5m revenue.
A raft of new ereaders, such as
Amazons Kindle Fire and the iPad
mini, is expected to boost ebook
sales in the coming months.
The company has seen sales of the bestselling Harry Potter titles decline further
ANGLO-SWEDISH pharma giant
AstraZeneca (AZ) will turn to new
deals in an effort to stem the decline
in its sales, new chief executive
Pascal Soriot said yesterday.
AZ reported a worse than expected
19 per cent tumble in revenue to
$6.68bn (41.4bn) in its third quarter
as the company battles a dwindling
pipeline of new drugs while patents
on existing products expire.
Even at constant exchange rates,
sales were down 15 per cent, AZ said.
One of the critical things we need
to do in the mid-term is to bolster
our pipeline and that will rely on
business development activities,
there is no question about it,
Soriot said.
Soriot, a veteran of the pharmaceu-
tical industry with first hand experi-
ence of successful mergers, was
appointed as the new head of AZ at
the beginning of the month.
He replaced former CEO David
Brennan who quit the role abruptly
at the end of April this year, follow-
ing discontent from major investors.
Loss of exclusivity on several key
AstraZeneca in
search for deals
as revenue falls
BY JULIAN HARRIS
brands including Seroquel IR from
the end of March accounted for
most of the revenue decline, AZ
commented yesterday.
Pre-tax profit dipped by 51 per cent
to $2.05bn, for the three months to
30 September, its accounts said.
On his first day in the job, on 1
October, Soriots reign began with
the firm suspending its share repur-
chase programme a move seen as
freeing up funds for potential
acquisitions.
Its share price dropped by one per
cent on the day of the news, hitting
2,861p during the middle of the
month. Yesterday it rose early on, and
ended up 0.42 per cent at 2,895.05p.
11
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cityam.com
AstraZeneca PLC
2,900
2,920
2,940
2,960
2,980 p
2,895.05
25Oct
The results were behind our and consensus estimates at the top line but
ahead of estimates at the core earnings per share line although this was at-
tered by the previously announced OTC Nexium agreement with Pzer.
Its hard not to see core EPS estimates trickling up, we are at $6.20.
ANALYST VIEWS
All in all, this was a good set of results given the generic headwinds the
company faces. The company reiterated full-year core earnings per share guid-
ance of $6.00-6.30 despite the cessation of the share buyback pro-
gramme. We reiterate our hold recommendation.
While core earnings per share (EPS) beat expectations by ve per cent,
this appears to be due to one-off prots from the sale of Nexium OTC rights.
Also, revenues missed by one per cent; but we maintain our hold guid-
ance expecting EPS of $6.10.
IS THERE STILL HOPE FOR

ASTRAZENECAS STOCK
GIVEN THESE RESULTS? Interviews by Julian Harris
BRIAN WHITE SHORE CAPITAL
ALISTAIR CAMPBELL BERENBERG
IAN HILLIKER JEFFERIES

New CEO Pascal Soriot previously worked on mergers involving pharma rival Roche
PHARMACEUTICAL group Shire said
yesterday its chief executive Angus
Russell would be replaced by
Flemming Ornskov, an executive
from Bayer, to help steer the
acquisitive company to continued
growth.
The change in management came
after the firm missed expectations
for the third quarter by reporting
non-GAAP diluted earnings per ADS
(American Depositary Share) of
$1.36, up six per cent, on revenue of
$1.1bn, up one per cent.
The company, whose drugs
portfolios include treatments for
hyperactivity and rare diseases, said
it remained on track to meet its
target for double-digit earnings
growth for the year.
Russell said it was the right time
to move on after Shire had been
transformed from a little company
reformulating old drugs into an
leader in areas like hyperactivity and
rare diseases during his
13-year tenure at the
group, the last five
as chief executive.
Ornskov will take
over on 30 April
after a period of
transition.
Shire replaces
CEO as profits
miss forecasts
Dr Ornskov
will take over
next year
G
UESTS at The Game quiz
evening, held in aid of St Johns
Ambulance, were happily
wining and dining in the
Guildhalls Great Hall on Wednesday
when their supper was disturbed by
a mysterious murder in the library.
Donning forensic suits, teams from
firms including KPMG, Investec,
Hogan Lovells and Ernst & Young
boldly set out to
investigate.
After scoring highly
for both their general
knowledge and CSI-
style deductive
powers, detec-
tives from
KPMG were
declared over-
all winners of
the night.
The Capitalist
suspected they
might have been
in it to win it
early on, after
noticing that
while most firms
had chosen their company name as
their team name, those clever
accountants had named themselves
the KPMGeniuses.
However the real shocker of the
evening was the result of the charity
auction, where the chance to be an
extra on reality television programme
Made in Chelsea turned out to be, by
no small amount, the most sought
after lot.
12
cityam.com
cityam.com/the-capitalist
THECAPITALIST
EDITED BY CALLY SQUIRES
Got A Story? Email
thecapitalist@cityam.com
Murder most mysterious in
the Guildhalls library
Left to right (below) the KPMG
winners: Paul Loveridge,
assistant tax manager; Lee
Epstein, principal adviser;
Karen Bloomfield, director;
Miles Galaska, analyst; Sin
Watson, formerly senior tax
manager and Faye McGillian
Above (top): Angus Campbell, head of
market analysis at London Capital Group
bids for an auction lot; Above (middle):
crime scene; Right, from KPMG: Chris Fyles,
partner and Karen Bloomfield, director
Above top row: Neal Argent, executive
director, E&Y; Malcolm Bairstow, partner, E&Y;
Andrew Ward, senior consultant, E&Y; David
Law, Olympic Delivery Authority; Bottom
row: Lyn Lua, senior consultant, E&Y; Jon
Morris, manager, E&Y; Paul Durkin, partner,
E&Y; Huda As'ad, senior manager, E&Y and
Rob Hoccom, Olympic Delivery Authority
14
NEWS
PERNOD Ricard yesterday predicted a slowdown
in profit growth in the current year after slowing
Asian demand for Martell cognac and Scotch
whiskies dragged quarterly sales below forecasts.
The worlds second-biggest spirits group behind
Diageo predicted a rise in underlying profit from
recurring operations of close to six per cent in the
year to 30 June 2013, a slowdown from nine per
cent in fiscal 2012. Chief executive Pierre Pringuet
said he expected the full year to follow the trend
seen in Pernods first quarter through September.
Pernod predicts slow
Asian profit growth
ONLINE gambling company Bwin was boosted
yesterday when it announced a tie-up with US
Facebook game developer Zynga that will see Bwins
technology used in a range of poker and casino
games. The Zynga deal moved Bwin shares up 6.7 per
cent yesterday.
Zynga announced it was moving into lucrative
casino games on Wednesday night, as games such as
Farmville lose players. The games will give Bwin
access to a vastly increased pool of players.
Bwin shares rise on
Zynga casino deal
BY JAMES TITCOMB
HAULIER Stobart said yesterday it plans to push
further into the air and biomass sectors after the
group relied on tight cost management to offset
the pressure being placed on its core transport
business by nervous retailers.
The company, whose Eddie Stobart trucks
deliver goods to retailers like Tesco, on Thursday
reported underlying pretax profit of 13.2m for
the six months to the end of August, down
nearly 20 per cent from a year ago.
Stobart confident
after tough first half
TRANSPORT group Go-Ahead said yesterday that
its chairman Sir Patrick Brown would retire
from the company in April next year, after 10
years leading the board.
Andrew Allner, a senior independent director
and chairman of the firms audit committee, will
succeed Sir Patrick from 25 April 2013.
The group is now in a strong position to move
forward and the time is ripe for me to step
down, Sir Patrick said yesterday.
Shares in Go-Ahead closed flat yesterday at
1,348.54p.
Go-Ahead chairman
to retire after 10 years
YELLOW Pages publisher Hibu, struggling with huge
debt and a declining core business, yesterday said it
would suspend loan payments until it restructured
its balance sheet, sending its shares down by as
much as 34 per cent.
A number of waivers, consents and amendments
are being sought from the wider lending group in
the coming days so that the restructuring
discussions can proceed as efficiently and effectively
as possible, Hibu, formerly Yell Group, said in a
statement ahead of a meeting with lenders.
Hibu to suspend its
payments on loans
ITALY and Spain were clobbered with further
sets of bad data yesterday, as the countries
struggle to fight both recession and sovereign
debt crises.
Retail trade in Italy, the Eurozones third
largest economy, slid one per cent between
August 2011 and August this year, data from Istat
revealed yesterday. This came as employees were
hit by real declines in their wages, also according
to data from Istat. Hourly wages were up 1.4 per
cent in cash terms over the year, compared to
inflation of 3.3 per cent in that month,
indicating a real decline of 1.9 per cent in just a
year.
And Spain was hit by industrial price inflation
speeding ahead at 3.8 per cent, data for
September from statistical office Ine revealed.
EUROPEAN banks are contracting
foreign lending so far and so fast
that it is reversing the single market
in finance, according to a Deloitte
report published yesterday.
The warning came as new
European Central Bank (ECB) data
showed bank lending to the private
sector slumped 0.8 per cent in the
Eurozone in September, accelerat-
ing on the 0.6 per cent fall in August
and the 0.4 per cent drop in July.
On the year, credit extended to the
private sector fell 1.3 per cent.
However, lending to the public sec-
tor jumped 8.3 per cent.
Deloittes bank survey found cross-
border lending by European banks
fell 41 per cent from its 2008 peak to
the start of 2012 a contraction of
$5.1 trillion.
Despite the sharp contraction
already experienced, the Deloitte
bank survey found that banks
expect this de-globalisation trend to
continue, said the report.
Having completed much of their
deleveraging outside of Europe, 88
per cent of respondents are looking
Banking crisis
reversing EUs
single market
BY TIM WALLACE
to divest assets in Western Europe.
Those divestments are most likely
to come in the form of commercial
real estate, infrastructure and struc-
tured finance portfolios.
The study found almost 80 per cent
of banks see price agreement as a
sticking point in agreeing asset
sales.
But as financing conditions have
improved in the last six months, pri-
vate equity firms have been more
willing to buy, and banks have made
more aggressive provisions against
the portfolios.
Deloitte expects buyers and sellers
to meet in the middle, leading to
an increase in volumes soon.
Most banks are looking to sell o loan portfolios
60! 50! 40! 30! 20! 10! 0!
%oftypesofassetsbanksarelikelytosell
Loanportfolios
Securities and
tradingportfolios
Bank subsidiaries
or branches
Non-bank
activities
LAZARD plans to cut $125m
(77.5m) in annual costs, mainly
through staff reductions, the
investment bank said yesterday, as
it works to meet an aggressive
profit goal in a weak market for its
financial advisory services.
Lazard announced the cost-
cutting target which represents
7.8 per cent of its operating
expenses last year as it reported a
sharp decline in third-quarter
earnings. Its shares rose more than
four per cent.
Higher costs, mainly from
increased compensation, and lower
Lazard lays out plans for $125m
in cost cuts as earnings fall
BY CITY A.M. REPORTER revenue from advising companies
on mergers and acquisitions have
squeezed Lazards bottom line.
Lazard reported third-quarter
earnings of $33m, or 26 cents per
share, down 47 per cent from
$63m, or 49 cents per share, a year
earlier.
Even if revenue does not
improve, Lazard plans to meet its
target through cost-cutting, Jacobs
said. About two-thirds of the
$125m in expense reductions will
come from compensation,
primarily through staff cuts,
although he did not rule out the
possibility of a lower bonus pool at
the end of the year, too.
15
NEWS
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THE US economic recovery may now be
on a firmer footing, a raft of data
releases yesterday suggested, in stark
contrast with more gloomy world
conditions.
Business activity improved in
September, hitting zero on the Chicago
Feds national activity index, up from
minus 1.17, implying economic growth
rates close to long-term trends.
New orders of durable goods also
bounced back from a downbeat August
picture, according to data from the US
Census Bureau, climbing 9.9 per cent
into September to hit $218.2bn
(135.4bn), after Augusts 13.1 per cent
collapse.
Positive data suggests US economy
picking up faster than rest of world
BY BEN SOUTHWOOD And new unemployment benefit
claims plummeted 23,000 in a week,
hitting 369,000 on the seasonally
adjusted measure, the Department of
Labour said, though this data is for the
week ending 20 October. This plunge
clawed back a large chunk of the 50,000
jump seen in the previous week.
Contracts to buy previously owned
homes were less positive, rising just 0.3
per cent on the month, data from the
National Association of Realtors (NAR)
revealed, well under expectations of
around 2.1 per cent, but economists
still expected a generally upward trend.
NAR chief economist Lawrence Yun
said: With positive underlying market
fundamentals [home sales] should
continue on an uptrend in 2013.
Spain and Italy hit
by more bad news
BY BEN SOUTHWOOD
S
O
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E
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O
I
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FOR YOUR
5
MINER Anglo American yesterday
reported solid performance across
five of its seven key commodities, as
it said South African industrial
action had hurt platinum output.
The miners Kumba iron ore pro-
duction jumped 14 per cent in the
third quarter to a record 12.5m
tonnes, driven by a faster-than-
expected ramp-up of the Kolomela
mine, which is expected to produce
at least 7m tonnes this year.
Coal production increased 12 per
cent to 4.5m tonnes, while copper
production soared 12 per cent to
157,300 tonnes over the quarter.
Nickel output jumped 38 per cent to
9,000 tonnes.
However Anglo Americans plat-
inum operations, which have been
hit by wildcat strikes since mid-
September, reported flat output
quarter on quarter at 649,000
ounces.
Anglo American Platinum, the
worlds largest platinum producer,
lost 42,000 ounces of equivalent
refined metal over the quarter, as
well as an additional 96,300 ounces
Solid results for
Anglo American
despite strikes
BY CATHY ADAMS
from 1 to 24 October due to the
strikes. As a result, it warned that the
full-year production target of the pre-
cious metal would be reduced to
between 2.2 and 2.4m ounces.
Industrial action spread to Amplats
Rustenberg operations last month.
Weeks later, it spread to its Kumba
Iron Ore unit. Then at the start of
October, industrial action began at
the Sishen mine, which has led to the
miner losing around 2.2m tonnes of
iron ore.
Analyst Cailey Barker at Numis
Securities said yesterday that Anglo
American had reported pretty good
results considering the challenges to
the business.
Deutsche Bank and UBS are acting as joint
lead managers and joint bookrunners on the
placing. The team from Deutsche Bank was
led by James Agnew, chairman of UK
corporate broking. Agnew has been with
Deutsche Bank for 10 years, having previ-
ously been head of corporate broking at
Merrill Lynch. He has over 25 years experi-
ence as a broker, and currently sits on the
Takeover Panel and the London Stock
Exchange Primary Markets Group. While at
Deutsche Bank, the banker has advised on
the acquisition of Arriva by Deutsche Bahn,
Krafts acquisition of Cadbury, Old Mutual
on its offer for Skandia, DP World on its
offer for P&O and Scottish and Newcastle on
the offer by Carlsberg/Heineken. He has
also worked on the National Grid and
Wolseley rights issues. He qualied as a
chartered accountant with KPMG and is also
a non-executive director on the board of oil
rm Petroceltic. Hew Glyn Davies from UBS
is leading his team on Draxs placing.
Recently promoted to vice chairman for
overall UK activities at the Swiss bank, Glyn
Davies has worked on many high-prole
deals. Most recently, he has been involved
with BP on the sale of its stake in TNK-BP to
Rosneft. On the legal side, Slaughter and
May also has a role advising Drax.
ADVISERS DEUTSCHE BANK
JAMES AGNEW
DEUTSCHE BANK
Anglo American PLC
1,850
1,900
1,800
1,950
2,000
2,050
2,100
p
1,883.00
25Oct
17
NEWS
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POWER station operator Drax
yesterday said it had raised 190m
through a share placing to
support the firms transformation
into a biomass-fuelled electricity
generator.
The FTSE 250 energy firm,
which runs a coal-fired power
station in Yorkshire, placed just
under 36.5m shares, representing
almost 10 per cent of its existing
share capital, at a price of 520p
each, raising 190m.
The placing formed part of
Draxs previously-announced
700m capital investment for the
biomass conversion, so it can move
away from coal-fired power to
Drax raises 190m in placing
for biomass fuel conversion
BY CATHY ADAMS
renewable energy.
It also plans to take on 200m in
new debt, and has increased its
existing 310m debt facility to
400m. There is also 230m in cash
on Draxs balance sheet to use for
investment in the biomass fuel
conversion.
Invesco and Schroders are two
large shareholders that have taken
up their full allocation in the
placing, Drax said yesterday.
The shares will begin trading on
the London Stock Exchange on 30
October.
Meanwhile, Drax said in a
statement that its full-year
expectations were unchanged as
trading conditions in its
commodity markets improved.
COPPER miner Kazakhmys
yesterday said it was on target to
reach its full-year output target of
between 285,000 tonnes and
295,000 tonnes of the base metal.
Over the three months to
September, it posted a 12 per cent
increase in copper cathode output.
Total copper sales over the nine
months to September were 17,000
tonnes below the same period in
2011, due to a 13,000 tonne
decrease in cathode production
and a build up in goods awaiting
customer delivery, the miner said.
Kazakhmys on
track for target
BY CATHY ADAMS
SEGRO yesterday said it had made
progress against a challenging
backdrop in the third quarter,
reducing vacancy rates and bagging
a trio of pre-let deals.
The industrial property company
said total rental income increased
by 7.1m in the period. It has also
signed three new pre-let
development contracts, which will
produce 1.8m of income in 2013.
The groups vacancy rate fell
slightly across the quarter to nine
per cent from 9.1 per cent at the
end of June.
Segro rental
income rises
BY KASMIRA JEFFORD
18
Wall St treads
water on weak
earning reports
U
S stocks eked out small gains
yesterday in another
uninspiring session on Wall
Street, with worries about
weak business spending keeping
investors wary.
The Dow Jones industrial average
rose 26.34 points, or 0.20 per cent, to
13,103.68 at the close. The Standard &
Poors 500 Index gained 4.22 points, or
0.30 per cent, to finish at 1,412.97. The
Nasdaq Composite Index advanced
4.42 points, or 0.15 per cent, to end at
2,986.12.
After the close of trading, Apple, the
most valuable public company in the
United States, posted quarterly earn-
ings that fell short of expectations.
Apples earnings per share came in at
$8.67, compared with Wall Streets esti-
mate for $8.75 a share.
Equity futures fell on the news, with
S&P 500 futures dropping 3 points to
1,405.20, signaling a possible fall in
stocks today.
The broad S&P 500 has declined 3.6
per cent over the previous five sessions
before a modest rebound Thursday. A
string of high-profile disappointments
pointing to weak global demand has
sapped buying enthusiasm after what
has been a strong run in 2012.
There were a few bright spots during
the day, such as Procter & Gamble,
which rose 2.9 per cent to end the reg-
ular session at $70.07 after reporting
stronger-than-expected results. But
that was not enough to motivate
investors reeling from a sharp decline
in recent days.
With about 244 companies in the
S&P 500 reporting results so far, 62.3
per cent have beaten expectations, a
slight improvement on the typical 62
per cent average, Thomson Reuters
data showed.
B
RITAINS top share index was
fractionally higher yesterday as
gains by banks on strong UK GDP
figures were countered by some
mixed corporate earnings.
Banks added 0.8 per cent on news that
Britain pulled out of recession in the third
quarter, with its strongest quarterly eco-
nomic growth in five years, boosting expec-
tations that lending conditions will
improve. This is only a single figure, and
does not signal the start of sustained recov-
ery, cautioned Jeremy Whitley, manager
of Dunedin Income Growth Investment
Trust.
At the close, the FTSE 100 index was up
0.27 points, or 0.01 per cent at 5,805.05
points, having added 0.1 per cent on
Tuesday to snap a three-session losing
streak.
While the economy returned to growth,
the third-quarter corporate earnings sea-
son maintained a mixed picture.
WPP shed 2.3 per cent after the worlds
largest advertising group cut its full-year
outlook for the second time in two months
in a third-quarter trading update.
Trading volume in WPP was more than
double its 90-day daily average, at 254 per
cent, while volume for the FTSE 100 index
was 90 per cent of its average.
Consumer products giant Unilever, how-
ever, added 2.9 per cent after beating mar-
ket expectations with a 5.9 per cent rise in
underlying sales in the third quarter.
And cruises operator Carnival was the
top blue chip gainer, up 3.0 per cent, as its
peer Royal Caribbean Cruises posted
lower quarterly earnings but raised its full-
year forecast, saying bookings have been
stronger than expected and it has been
able to charge more per cruise.
BESTof theBROKERS
Home Retail Group PLC
p 116
114
112
110
108
106
104
110.81
25 Oct
HOME RETAIL
GROUP
UBS maintains its buy
rating for the consumer
goods retailer, raising its
target price from 115p to
120p. The broker will not
change full-year 2013 PBT
and outer year estimates.
DASHBOARD CITY
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
FTSE
5,925
5,900
5,875
5,850
5,825
5,800
5,805.05
25 Oct
APR Energy PLC
p 750
725
700
675
650
625
600
643.91
25 Oct
APR ENERGY
Seymour Pierce has
downgraded the power
provider from hold to
reduce, lowering its
target price to 650p from
685p. The broker blamed
low sales on delays in
contract signatures.
Reckitt Benckiser Group PLC
p 3,900
3,850
3,800
3,750
3,700
3,650
3,770.00
25 Oct
RECKITT
BENCKISER
Panmure Gordon
maintains its hold rating
for the consumer goods
provider, raising its target
price to 3650p from
3540p, after the reiterated
full-year outlook.
McCarthy & Stone
The construction firm has
appointed Mark Elliott as its new
chief executive. He previously
worked for Arena Leisure, the
hotel and race course operator,
where he oversaw its merger
with Northern Racing in March
2012. Elliott was also formerly
chief executive of Wembley.
Otkritie
The Russian financial services firm has appointed Ruben
Aganbegyan as chief executive and chairman of its
managing board. He was most recently president of the
Moscow Stock Exchange, and has also held senior roles at
Renaissance Capital, Troika Dialog, and Credit Suisse.
Aganbegyan has also worked for PwC and Clifford Chance.
Axa Investment Management
Qi Sun has been appointed emerging Asia economist at the
asset management firm. He joins from the Hong Kong
Monetary Authority, where he was an economist focused on
the Chinese economy and financial reform.
AT Kearney
The management consultancy has appointed Alberto Fumo
as senior principal in its private equity consultancy. He has
held a number of senior positions in the strategic
consultancy industry, and focuses on new acquisitions,
growth strategy and portfolio strategy during recession.
Barclays
Adeline Chien has been appointed managing director in the
banks Hong Kong team. She joins from EFG Bank, where
she headed the team responsible for high net worth clients.
Chien has previously held roles at UBS and Goldman Sachs.
Russell-Cooke
Nisha Patel has been appointed as an associate in the law
firms immigration team. She joins from Duncan Lewis
Solicitors, where she managed its immigration team.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
CITY MOVES
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REPORT
in association with
in association with
FTSE flat as poor corporate results
overshadow positive news on GDP
T
HOSE of us glued to the live
feed of Felix Baumgartners
jump from the edge of space
last week were also
incidentally witness to one of
the most powerful and
underappreciated performance
enhancement techniques known. If
you were watching, the chances are
you didnt even give it a second
thought. But theres as much to
admire in the moments before the
jump as in Baumgartners record,
sound-barrier-breaking feat itself.
What the world heard before the
daredevil began his headlong
plummet was the slow, steady voice
of Joe Kittinger, former US Air Force
colonel and the man whose 50-year-
old records Baumgartner was trying
W
HEN the euro was formed,
the economic debate was
marked by a paradox.
Liberal economists on the
continent were
enthusiastic they believed the
euros adoption would force reforms
on the EU. Free market economists in
the UK were more pessimistic. They
feared that economic shocks would
result in complete social dislocation,
due to inflexible labour and product
markets. And while UK free-
marketeers argued that the euro
would lead to an EU superstate, their
continental counterparts trusted that
fiscal and monetary policy would be
kept entirely separate.
UK opponents of the euro have been
vindicated, though to no ones satis-
faction. The European Central Bank
(ECB) has conducted monetary policy
in such a way that both government
debts and banking system debts are
now being shared. Eurocrats have con-
cluded from this that, if debts are to
be shared, there should be strict cen-
tralised EU control of banking systems
and national budget decisions.
cityam.com/forum
Average government
debt in the Eurozone is
half as much again as
the legal EU maximum
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.
20
PHILIP BOOTH
The Eurozone is doomed to unwind
without radical liberalising reforms
The EU is now behaving like a pan-
icking man in quicksand. The ECBs
operations are ensuring that the
banking systems of more solvent
countries are implicitly bailing out
the banks of nations in trouble, and
government debt is being socialised at
the EU level. It is believed that, by
repackaging debt, it will somehow
disappear. Instead the burden grows,
day by day.
Average EU government debt is half
as much again as the legal maximum
under EU rules. In Greece, it stands at
170 per cent of GDP. It is impossible to
imagine EU countries dealing with
this burden unless there is rapid eco-
nomic growth. But growth will not
come unless labour markets, business
regulation and services are speedily
reformed. And this is unlikely to hap-
pen soon. Only this week we saw one
EU commissioner suggest crazy new
regulations to impose compulsory
quotas on female board members.
But even if pro-market reform does
happen, austerity will have to contin-
ue. Governments cannot carry on bor-
rowing bond markets are effectively
shut and are only kept open because
of extraordinary measures by the ECB.
Unfortunately, austerity may affect
growth in the short term. Countries
with floating exchange rates that cut
borrowing do not have to worry so
much about the impact on growth.
The reduced capital inflows needed to
finance government deficits lead to
benefits from lower exchange rates,
interest rates or both. In the
Eurozone, however, exchange rates
are effectively fixed and austerity is
more painful in the short term.
Added to this problem is the need
for countries like Greece to become
competitive again. To do this, wages
and prices must fall by about 25 per
cent. On a fixed exchange rate, this
can only happen through deflation.
However, delivering deflation on the
scale needed, given the EUs
appallingly rigid labour markets, will
prove an economic nightmare. It will
also make the debts of Greece, Spain
and others even harder to service, as
wage levels and tax revnues fall, but
debt interest payments do not.
We may as well short-circuit the
years of pain that the EU and ECB are
imposing upon the Eurozone by try-
ing to postpone the inevitable. We
should look for an orderly default on
government debt in highly indebted
countries. Default should come with
conditions like the mass privatisation
of state assets, the proceeds of which
would be used to repay creditors. This
would cause a crisis in the Eurozone
banking system though UK banks
would probably survive intact. The pri-
ority must be ensuring that those
banks that fail do so in an orderly
way.
Wealth loss is sadly inevitable
because governments have borrowed
money they are not able to pay back.
We cannot avoid that problem and,
however much the ECB postpones the
day of reckoning, we may as well face
up to it.
To get back to growth, unless the EU
can enact the necessary labour mar-
ket reforms, the Eurozone will have to
unwind. And the Eurozone can only
be unravelled by keeping the euro as a
legal tender currency across the cur-
rent single currency area, while allow-
ing member states to issue national
currencies in parallel if they wish.
All other viable paths would seem to
lead to a Eurozone superstate and,
whatever the coalition government
thinks, Britain could not remain out-
side its grasp for long.
Philip Booth is editorial and programme
director at the Institute of Economic Affairs.
to beat. He walked the challenger
through a 40 item checklist from
Mission Control in Roswell.
Kittingers list didnt sound very
sophisticated. It consisted of such
straightforward steps as Item 20,
adjust helmet tie down. Between
two men of such expertise it could
have seemed absurd or patronising.
But in aerospace, more than any
other field, the humble checklist has
proved its worth, even for highly-
trained pilots.
Thats been true since the 1930s,
when pilots used the tool to fly
Boeings B-17. The Flying Fortress
became a critical asset in World War
II. But it was nearly abandoned after
a disastrous test flight when it
crashed due to the complexity of its
controls. Only after test pilots
devised checklists to cope was it
possible to fly the machine safely.
The story of the B-17 is outlined,
with many others, in The Checklist
Manifesto, by Atul Gawande. It is a
fascinating call to arms for the
power of the checklist, and has
gained a cult following. Jack Dorsey,
one of the co-founders of Twitter,
gives a copy to every new employee
at the revolutionary mobile
payment firm Square, where he is
now chief executive. The author
himself is no armchair theorist, but
has used checklists in his own
specialism, medicine, showing they
can cut major complications after
surgery by more than a third.
Gawande also shows the
checklists underappreciated value
for other fields, including finance.
He describes three investors who
find formal checklists improve their
performance, helping them make
better decisions faster. He cites
psychologist Geoffrey Smarts
finding that venture capitalists with
a methodical, checklist-based
approach significantly outperform
other styles of assessing early stage
investment opportunities.
The trouble with checklists, it
seems, is not proving that they work,
but how easy it is to overlook their
effectiveness. The better you are at
what you do, the more likely you are
to imagine that intuition and
mastery will see you through. Yet
the evidence suggests that checklists
are a valuable support to anyone
working at full stretch. No one
wants to surrender to a checkbox
culture, but a checklist can
transform high-level performance.
As Baumgartner shows, for those
humble enough to accept them, the
sky is the limit.
Marc Sidwell is managing editor of City
A.M. The Checklist Manifesto by Atul
Gawande is published by Profile.
THE LONG
VIEW
MARC SIDWELL
The skys the limit: Why the humble checklist beats masterful intuition
MORNING UPDATE
A.M.
21
The Forum is open for you to take part. Got a sharp comment on
one of todays columns? Do you have another subject you want
to share your opinion on? We want to hear your views.
Email theforum@cityam.com or comment at cityam.com/forum
Better than Labour
[Re: Coalition must not become
complacent on economic growth,
yesterday]
Although the coalition should avoid
complacency over economic growth, its
also important that it trumpets the
advantages of its economic policy against
Labours alternative. Yes, austerity has not
been pushed as far as it should have been.
But a continued reliance on the assumed
benefits of stimulus spending would have
been disastrous. Yes, there has been
confusion about how far the government
should intervene to encourage growth. But
some supply-side reforms have been
attempted. Be glad our economy is being
run by George Osborne and not Ed Balls.
Robert Marsden
Kings defence
[Re: Why Sir Mervyn Kings defence of QE
fell short, Tuesday]
The negative effects of quantitative easing
(QE) are not solely seen in rising prices (or
at least their likelihood). QE also devalues
our currency and renders many pensions
not far from worthless. A 100,000 pension
pot now buys you an annual income of just
a few thousand pounds, and a lot of people
are going to look aghast when they realise
how little their auto-enrolled pensions will
leave them to actually live on.
KeithWales
Sir Mervyn King has presided over an
unprecedented financial crisis. Wheres the
contrition?
AndrewWebb
S
OME good GDP news at last!
The UK economy is growing
again. Its official. In fact, the
initial estimate of growth in
the third quarter exceeded
market expectations of 0.6-0.7 per
cent growth by a long way. And at
1 per cent of GDP it now appears to
be the strongest quarter of growth
we have seen since the financial
crisis, at least according to the
current set of official estimates.
The picture of economic growth is
now starting to line up a bit better
with some of the other data, notably
recent figures for employment and
unemployment, which have been
very positive. If we exclude the
impact of oil and gas production, the
economy has grown over the past
year albeit by a rather modest 0.2
per cent. On the same basis, non-oil
GDP is now less than 1 per cent down
on its level in 2007 the peak year for
GDP before the recession hit.
There are, of course, grounds for
caution. First, some of this bounce in
GDP reflects an unwinding of the
dip created by the extra Jubilee Bank
Holiday. Second, the Olympics may
have provided a temporary boost to
economic activity which could
unwind over the next couple of quar-
ters. Third, there are still a number of
clouds on the economic horizon
from the Eurozone and softening
growth in Asia and other emerging
market economies. And the boost
that UK consumers have received
recently from lower inflation may be
unwound as higher food and energy
prices feed through later this year.
So cautious optimism, rather than
euphoria, is the right response to
these figures. We should look at GDP
estimates alongside the other data
we have relating to the state of the
economy, as we know that they can
be revised in the future. Employment
numbers and retail sales growth
TOP TWEETS
Very encouraging GDP figures. Amid
politicising, the real prize is a timely boost to
business confidence.
@MarkFieldMP
Fords factory closures show theres no room
for any complacency as we seek to secure
the economy.
@ChukaUmunna
Can the economic bounceback last? Unlikely
when services growth last quarter was more
than twice cumulative growth since 2008.
@fathomcomment
The coalition cant take credit for this GDP
growth. Its down to the hard work of
business people and entrepreneurs.
@DavidCoburn
As more criticism emerges, has the BBC done
enough to deal with the Jimmy Savile crisis?
YES
The tenor of current accusations, built on a febrile atmosphere of
rumour and suspicion, seems to preclude any reasoned debate
over what we want from a public broadcaster. Weve seen similar
panics around the BBC before, most recently after Jonathan
Rosss prank call to Andrew Sachs in 2008. This has invariably led
to more of the kind of risk-averse compliance regulation and
bureaucratic interference that is so poisonous to serious
journalism. If every questionable editorial decision will be treated
as a conspiracy, rather than failure, no one will benefit. Hard cases
make bad law, as the saying goes. There is a profound risk that,
unless the rest of the media are willing to take a step back and
offer a dispassionate and critical perspective, the extraordinary
case of Jimmy Savile could easily follow the Leveson Inquiry in
creating a chilling atmosphere for our free press.
David Bowden works at the Institute of Ideas.
David Bowden
NO
Sam Bowman
The Savile scandal is an ugly reminder that a news organisation
given near-monopoly status cannot fulfil its duty to the public to
expose wrongdoing. If any private business had acted as the BBC
has, it would collapse. Customers would boycott it and its rivals
would gleefully expose its failings. But the BBC is protected from
accountability by its licence fee subsidy, thanks to which it is a
near-monopoly, with a 70 per cent share of the TV news market.
Its nearest rival ITV has a mere 18 per cent share. We shouldnt be
surprised that the BBC has been so bad at exposing the scandal
within it has no need to be accountable to its viewers, so it can
get away with covering up its misdeeds. The News of the World
was scrapped after its employees crimes came to light. That
wont happen to the BBC. Its time for real accountability to be
imposed but for that to happen, the license fee has to go.
Sam Bowman is policy director at the Adam Smith Institute.
RAPIDresponses
Challenging times
lie ahead despite
solid GDP growth
have been relatively strong, but some
other indicators such as the
Confederation of British Industrys
latest manufacturing survey and
data from construction are more
downbeat.
For me, this reflects the reality that
we are living in a new normal,
where growth in western economies
like the UK is likely to be continue to
disappoint relative to the pre-2007
period. In the decade before 2007, UK
non-oil GDP grew on average by 3.5
per cent. In the current environ-
ment, we should regard growth at
around half this rate 1.5 to 2 per
cent as the norm.
The western world is still recover-
ing from the shocks of the financial
crisis. Consumers are still having to
cope with high and volatile energy
prices. And confidence is weak given
all the uncertainties surrounding
the Eurozone, the global economy
and public finances.
The UK, along with other western
economies, is in a process of transi-
tion. We have left behind a world
where growth was supported by easy
money, cheap imports and a false
belief in the end of boom and bust.
But the forces which might create a
future wave of sustained growth are
not yet apparent. So while the latest
GDP figures should give us some
encouragement, there are still likely
to be challenging times ahead.
Andrew Sentance is senior economic
adviser at PwC and a former member of
the Bank of Englands Monetary Policy
Committee.
ANDREW SENTANCE
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LIFE&STYLE
22
cityam.com
GOING OUT
Stars and statesmen turned out for the
Skyfall world premiere on Tuesday
23 October at the Royal Albert Hall.
Current Bond Daniel Craig, sporting a
post-Olympic glow, was flanked by
new Bond girls, Naomie Harris and
Brnice Malohe.
Prince Charles and Camilla, Duchess of
Cornwall, walked the red carpet, along
with Minnie Driver, Naomi Campbell,
Tess Daly, JLS, fashion designer
Valentino Garavani and Olympic
medalist Victoria Pendleton.
Bond premieres have doubled as
Royal Galas sice the 1964
premiere of Goldfinger. This
years gala raised 300,000 for
charities serving members of the MI5
and the UK Government
Communications Headquarters and
charities designated by the Prince of
Wales.
The after-party, at the Tate Modern,
had a crowd of 600 downing shaken,
not stirred, martinis. Turbine Hall was
a secret lair, fit for any maniacal villan,
complete with an Aston Martin.
Judi Dench, who reprised her role of
M, stepped out in full bling, with a
rhinestone 007 on her neck.
Skyfall opens in cinemas
nationwide today.
FILM
SKYFALL
Cert 12A | By Simon Thomson
hhhhi
A
FTER deftly eluding MGMs
debtors and safely delivering
the Queen to the Olympic
opening ceremony, James
Bond is out of bankruptcy, off
diplomatic protection detail, and
back on the big screen for a superbly
crafted and confident action thriller.
With a dangerously unpredictable
enemy bent on vengeance, Sam
Mendes Skyfall combines the best ele-
ments of classic Bond with modern
concerns about cyber-terrorism, to tell
a more personal story, which is both a
fitting tribute for the series fiftieth
anniversary, and a solid piece of enter-
tainment in its own right.
The mandatory pre-title action
sequence gets the ball rolling with a
rooftop chase through Istanbuls
Grand Bazaar, and ends with Bond
missing, presumed dead. But that
wouldnt be much of a movie, so after
a musical interlude from Adele, and
three months living on a beach, a spec-
tacular attack on MI6 headquarters
prompts his return.
Much of the action takes place in
London. Despite his quintessential
Britishness, Bond doesnt spend a lot
of time at home, so his extended stay
seems like an appropriately patriotic
coda to the capitals long eventful
summer of 2012, and gives residents
the added fun of spotting places they
know.
Skyfall is aware of its history filled
with in-jokes and call-backs to previous
Bond adventures but lays the founda-
tion for the future development of the
franchise.
This is Daniel Craigs third outing as
a colder, less heroic, fallible and world-
weary Bond. The series was rebooted
with Craigs entry in Casino Royale,
but faltered in Quantum of Solace, so
Skyfall uses Bonds resurrection to
get things back on track.
One of the ways it does this is by real-
ising that if Judi Dench is in the cast, it
would be idiotic not to make the most
of her. MI6 chief M is central to the
story, as she fights bureaucrats, politi-
cians and an anonymous foe whose
high-tech assaults are focused on her.
Always dignified, competent, and will-
ing to make difficult decisions,
Denchs seventh appearance
as M is decidedly her best. Skyfall rein-
troduces Bonds gadget-man, Q.
Although he eased the transition from
the much-missed Desmond Llewelyn,
John Cleese was never convincing as Q
(or R). He was passable comic relief, but
he looked like the kind of man who
would unwittingly use the tray of his
CD-ROM drive as a cup-holder (or
indeed, the kind of man who would
unwittingly use a computer with a CD-
ROM drive). Ben Wishaw is excellent as
the detached young boffin who has
taken over the role. His initially com-
bative first meeting with Bond
takes place in the National
Gallery, in front of Turners
Fighting Temeraire an old
battleship about to be bro-
ken up and is emblematic of the
films elegiac theme; the relentless
cycle of progress and obsolescence.
Also making a welcome return is
extravagant villainy. Its a decade since
the genetically engineered North
Koreans (a public school boy and a dia-
mond studded albino) in Die Another
Day and Quantum of Solace presented
arguably the least interesting villain of
the whole series: having the frog-like
visage of a young Andrew Lloyd-
Webber is unsettling but nothing like
as gratuitous as an auxiliary nipple or
metal hands.
On first inspection, Silvas chief
deformity is a ridiculous hairstyle, but
Skyfalls villain is played with a creepy
camp exuberance by Javier Bardem,
who previously won the Academy-
Award-for-best-supporting-actor-with-a-
ridiculous-hairstyle, as the lumbering
killer in No Country for Old Men, so
the filmmakers clearly knew what
they wanted. Clad in a beige lounge
suit that suggests a conscious evoca-
tion of the more outlandish foes of the
70s, Silvas ebullience barely conceals
a monomaniacal sociopath who is rot-
ten to the core.
As for the Bond girls; Brnice
Marlohe is effective as the femme
fatale, while Naomie Harris seems
rather too bright-eyed and enthusias-
tic as MI6 field agent Eve, whose inter-
actions with Bond are among the
worst moments in the film. The lack of
chemistry between the two makes
their pointedly single entendre office
flirtations seem horribly awkward,
more gamesmanship than lust; and
their needlessly zeitgeisty Fifty Shaves
of Grey interlude with a cutthroat
razor is as uncomfortable as watching
siblings kiss. But, in what might be the
films most blatant act of fan service, a
twist in the final minutes renders all
of this retrospectively charming.
Mendes theatrical roots are showing
in this production. Its visually stun-
ning and a sense of hyper-reality is
only reinforced by the casting of bril-
liant actors like Rory Kinnear and
Albert Finney, who breathe life into
what would otherwise have been mar-
ginal roles.
Perhaps Skyfall is too tightly plotted,
but as Craigs first film without Paul
Haggis (Crash) sharing a writing credit,
its refreshingly unsentimental. Meet
it on its own terms and the only com-
plaints about the film are nitpicking,
like what exactly is that minister-lead
inquiry? Or, how come Bonds sudden-
ly wearing gloves when he drops that
guy off a building? But these quibbles
are greatly outweighed by all that is
good about it, like the return of the
Aston Martin DB5, and a henchman
being eaten by a Komodo dragon. A
Komodo dragon!
Skyfall is easily the best addition to
the Bond franchise since The World is
Not Enough. Bond and M go on a jour-
ney together that culminates in dra-
matic character developments, the
likes of which are seldom seen in
action movies. But dont let that put
you off, because its also a literal jour-
ney that ends in massive explosions.
Skyfall takes Bond to new heights
Left: Daniel Craig looking pensive. Above:
the man of the hour in action.
The low-down on the London premiere
23
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Fill the grid so that each
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Place the numbers from 1 to 9 in each empty cell so that
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Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
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1 2 3 4 5 6
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9
10 11
12 13 14 15 16
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33 23
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ACROSS
1 Foundation (5)
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15 Foolish (coll) (4)
17 Noisy quarrel (6)
19 Residential district,
often run-down (6)
20 Bride-to-be (7)
21 Aromatic resin
used in perfume
and incense (5)
22 Sensations of acute
discomfort (5)
DOWN
1 Small lynx of North
America (6)
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B O A S T C A R D S
R U Y E T
D E A R B A F F L E
E R O A N E A
C I T E S P R I M
K O A K T R E E I
C U R L I R E A R
H N B O G S O
A M A Z O N O M E N
I D B N V
R O O T S E A G E R
4 6 6 3 9 8 2
3 5 2 1 3 3 1
1 7 2 3 5 8 9 6 4
6 8 9 7 4 8 9 6
7 9 4 2 1 5
2 3 4 1 9 7 8 6
3 5 4 7 3 1
4 1 2 6 8 9 7 5
8 5 1 9 2 6 7 4 3
9 3 5 1 2 6 2
6 2 8 3 5 9 4
4
4
4
4
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4
4
The nine-letter words were
SUBALTERN and UNSTABLER
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
HAVE I GOT NEWS FOR YOU
BBC1, 9PM
Only Connect presenter Victoria Coren
and former Daily Telegraph owner
Conrad Black join the team captains to
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Anne McElvoy and Tim Samuels to
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comedy Girls.
PIERS MORGANS LIFE STORIES:
BURT REYNOLDS ITV1, 9PM
The actor chats about his career, his
love life, his addiction to prescription
drugs and what it was like to be the
highest-paid film star in the world.
TVPICK
largest venture yet, Ham Yard. Its in
deepest, darkest Soho, says Kit, but
we have a walk-through garden in
the centre. So were going to make it
green. Its going to have some oak
trees in there, and Im hoping to
have a little rill.
It is Kits feel for nature that you
see everywhere birds, flowers,
trees and animals are motifs. And it
is a joyful expression of life that she
breathes into what is, at base, just
bricks and mortar. The whole thing
about doing the hotels is that they
are living things, she says. But that
means they have to move on all the
time. Guests want to see something
happening, they dont want to see it
exactly the same as the last time
they came. And thats part of the
skill of doing it moving it along
but not throwing the baby out with
the bathwater.
Update ideas are likely to come
from all corners of the globe, from
framed prints in a French fleamar-
ket to South American blankets. But
the Kemps are still based in South
Kensington, almost living above the
shop if you will, and constantly in
touch with the properties. I go
round my buildings once a week or
once every two weeks and look at
and Tim started in 1985, with Dorset
Square Hotel (which they sold, then
recently bought back), and Firmdale
has grown organically as sites came
up. Each property has a strong indi-
vidual character, not least because
the buildings themselves are so dif-
ferent. We usually start from
scratch, and turn often-neglected,
derelict areas, like car parks (the
Soho Hotel previously belonged to
NCP) and old warehouses, into regen-
erated, burgeoning new neighbour-
hoods, Kit says. It might be the cosy,
intimate townhouse feel of Dorset
Square in Marylebone, or the hip
hangout of the Soho hotel, with its
film-screening room, to the spacious
glamour of Haymarket and its 18m
pool that can turn into a dancefloor
with private bar and metallic sofas.
Next in development is their
I
WANT to pique the imagination
of even the most jaded
businessman, says Kit Kemp,
design director and co-founder
of Firmdale Hotels, the group that
includes the buzzy Soho, Covent
Garden and Charlotte Street Hotels.
If I can do that for a second, then
weve achieved something.
Pique, she definitely does, with
her love of texture and exuberant
colour; her sense of fun and eclectic
eye; and a strong sense of ordered
yet playful design present in all of
Firmdales seven London properties,
and at its fashionable New York sib-
ling, Crosby Street in SoHo. In a city
that is often grey, and in a world of
hotel interiors that use beige as the
trump card, Kits style stands out. It
should be an individual experi-
ence, she says of arriving at a
Firmdale property. You should not
feel that youre in a formula or a
brand. Thats what Ive really tried
to stay away from.
Wallpaper is in; wallpaper and
upholstery, pictures and rugs and
curiosities; wool and appliqu,
wood and pebbles; embroidery, a
hint of shabby chic; lots of antiques;
retro lamps; fresh, vibrant paint-
work; buff all-marble bathrooms (a
finish so immaculate because
youve got to feel as if youre the
first person thats ever been in
there, she says). Her palette bursts
upon you pistachio, paprika,
ointment pink, arsenic green, leaf
green. Its a style that has endeared
her to A-listers as long as your arm
Meryl Streep at Covent Garden, P
Diddy at the Soho. David Bowie,
Carey Mulligan and Giorgio Armani
are all said to be fans.
Self-taught, Kit has as a string of
awards, including an MBE this year
awarded to both her and her hus-
band, co-owner Tim Kemp. Tim is
amazingly involved, she says. He
finds the sites and is very much to
do with the bathrooms and behind
the scenes things. Hes a big motivat-
ing force. And now, with more than
a quarter of a centurys work under
her belt, Kit has published a book of
her approach to design, A Living
Space, a journey through her cre-
ations, which aims to give confi-
dence as well as inspiration. She
suggests simply trusting your
instincts when putting a look
together. A great space need not be
the most glamorous or luxurious,
she says. It is how personal and
interesting you make it, how much
it reflects you.
Establishing a cluster of hotels in
the capital has brought success to
the privately owned company, which
has bought, or built, all of its proper-
ties and has a turnover of 75m. Kit
After winning over the A-list with her unique designs at Firmdale Hotels,
expectations are high for the companys next big project, says Laura Ivill
24
cityam.com
PROPERTYINTERVIEW
Hotel interiors need not be dull
and predictable just ask Kit Kemp
them all, Kit says. I see the bits that
work and the bits that dont. And
sometimes you stand in a room that
youve just finished that you
absolutely love and think, Gosh this
is whats it all about.
Its this hands-on approach that
has really worked for the company.
Rather than spreading out to LA,
Miami, Boston, Chicago, they are
concentrating on creating Firmdale
New York (where 90 per cent occu-
pancy rates at Crosby Street are com-
mon at an average $700 a night). A
mid-town site has been chosen for
development, with possibly a third
in the future.
Meanwhile, Kit will be imagining
her stream in Ham Yard, the hotels
90 bedrooms and suites and 24
apartments. I do think that rooms
should be an adventure, and a bit of
fun, and not too serious, she says.
You can say, Gosh, I dont think Id
really want this in my own home,
but its quite fun to spend a night or
two. But there might be some areas
that you like, that youd want to
have at home. They are good for
inspiration.
A Living Space by Kit Kemp is out now in
hardback (Hardie Grant, 30). Her fabric
and rug designs are available from Kit
Kemp for Christopher Farr (christopher-
farr.com). Hotel doubles range from 125
plus VAT at Number Sixteen in South
Kensington, to $555 at Crosby Street Hotel
in New York.
A great space need
not be glamourous...It
is how personal and
interesting you make it.
Pilgrims Mews E14

699,950freehold
Ofered to the market for the frst time is this excellent 4 bedroom, end of terrace modern
house in the portered Virginia Quay development. Te house benefts from a mature 45ft
garden, an abundance of light & a very spacious 1st foor reception room.
West India Quay E14
1,000 per week (short Let)
A Manhattan style apartment in this desirable Canary Wharf development, No.1 West
India Quay. Te property comprises 2 large double bedrooms, 2 bathrooms (1 en-suite)
& an exceptionally large reception room with open plan fully ftted kitchen.
Canary Wharf & Docklands
020 7510 8300
sales.canarywharf@chestertonhumberts.com
Canary Wharf & Docklands
020 7510 8310
lettings.canarywharf@chestertonhumberts.com
Te School House, Pages Walk SE1
349,950 leasehold
A delightful 1st foor apartment set within this much sought-after gated Victorian School
conversion. Te property is double height with a galleried bedroom and features such as
exposed brick and wood fooring. Open House Saturday 27th October 12.00-1.00pm
Alaska Building, Grange Road SE1
675 per week
A split level 2 bedroom warehouse conversion set within the Art Deco development,
Alaska Building. Located within close proximity to excellent transport links to the City &
Canary Wharf this development also benefts from superb communal areas & 24hr security.
Te property further boasts a south facing roof top conservatory/terrace.
Tower Bridge & City
020 7357 7999
sales.towerbridge@chestertonhumberts.com
Tower Bridge & City
020 7357 6911
lettings.towerbridge@chestertonhumberts.com
chestertonhumberts.com
4 reasons to sell this autumn
visit chestertonhumberts.com
26
cityam.com
PROPERTY OF THE MONTH
Morley Old Hall, Norfolk
Strutt & Parker Guideprice: 2.5m
S
ECLUDEDin 32 acres of Norfolk
countryside, this renovated
Grade I listed Elizabethan hall
greets visitors at the end of a
long, tree-lined drive.
Stretching over three floors, the
hall has an impressive seven
bedrooms, six bathrooms, fireplace-
accented dining room, and a
generous kitchen and breakfast
room, perfect for families or other
gatherings. On the second floor, the
house has a large game room, ready
for any activity.
It was last purchased in 2012, as
part of a portfolio of country
retreats. As a result, upgrades to the
house included re-landscaping the
gardens, a new central heating
system, significant rewiring,
upgraded plumbing and two new
bedrooms with en-suite bathrooms
on the ground floor.
Luckily, period features like
fireplaces, exposed beams and
timberwork, and a single-piece wide
oak staircase, are still in place. The
main house actually sits on a half-
acre garden island, maintaining its
Anglo Saxon roots with a moat. The
red sand-faced brick house is in the
traditional Elizabethan E-plan and
arranged over three storeys, while
faades face east and west. The view
is open for miles.
Aside from the manor house,
Morley has three individual brick
and timber cottages, each with the
same red-tiled roof. The structures
are all single-storey, making them
ideal for letting, guest or staff
accommodation should it be used
for commercial purposes. West (the
biggest), Middle and East Cottages
have quick access to private gardens
and a mixed orchard. They sit beside
a traditional timber-cladding barn,
one of two, ready for stabling
animals. Amid the trees, Morley even
has a pond to complete this
picturesque property.
Morley Old Hall is mentioned in
Pam Boys Beautiful Homes of
Britain, Sir Nikolaus Pevsners
Buildings of England and Burkes
Guide to Country Houses. Built by
the Sedley Family, who owned the
manor from 1545 until about 1790, it
has since been owned by Field
Marshal Lord Ironside, as well as by
Janet Shand Kydd, first wife of Peter
Shand Kydd, stepfather of Princess
Diana.
Morley is twelve miles from the
City of Norwich, with Attleborough
and Wymondham being the closest
market towns. Trains to Liverpool
Street can be taken from Diss.
Clockwise from left: The decorative interior in Morley Old Hall; the
buildings impressive exterior; the land surrounding the property
Marvel at the views from this
picturesque country manor
Spectacular views with period features at this renovated hall, says Amelia Brust
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LEON/RD STREET
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cityam.com
PROPERTY OF THE MONTH
Have all of your needs catered
for in this striking dream home
020 7758 8478
www.portobellosquare.co.uk
MOVE IN
SPRING
2013
One bed apartments from 452,500
Two bed apartments from 660,000
In the heart of Notting Hill, off
Portobello Road, Portobello Square
offers a stylish collection of apartments,
mews and town houses.

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HIS charming property sits to
the south of North Luffenham
village and is adjacent to the
13th-century St. John the
Baptist Church.
Built in 1555 by James Harrington,
the house was originally named The
Digby House after Simon Digby, who
acquired it in 1559. Digby was a
named conspirator in the Gunpowder
Plot, and was thought to have hosted
planning meetings at the Hall, report-
edly in the Digby Room.
On the first floor are a grand total of
six bedrooms, 3 bathrooms and a sep-
arate shower room. The large kitchen
and breakfast room have a vaulted
ceiling and skylight, as well as an oil-
fired Aga, ideal for families and large
gatherings. The drawing room has an
open fireplace with a 17th-century
carved oak mantel. The library on the
west side of the house, has a clear
view of the garden below. Both the
east and west ends of this floor fea-
ture paneled reception rooms.
The first floor is a self-contained
one-bedroom apartment with a pri-
vate kitchen and sitting room. South-
facing, it is accessed via the rear hall
or a paneled landing attached to an
oak staircase next to the reception
room. Climb to the second floor and
visitors will find four bedrooms and
one bathroom. This floor has good
height and plenty of space, recom-
mended for older children to occupy.
The east end of the main house is
currently designated as a leisure
complex, with a large reception
room fitted for kitchen appliances, an
indoor swimming pool with a Jacuzzi
and sauna, changing room, pump
house, gymnasium and a barbeque
room. Currently, the billiards room is
being used as an office. The property
sits on about 6.1 acres, surrounded by
gardens scattered with topiaries. On
the west side lies a rectangular
sunken water garden, surrounded by
terraced stone walls. Along with the
gardens are six stables with a tack
room, workshop and hayloft, and a
separate barn. Do not forget about
the tennis court, on the north side of
the house, surrounded by various
fruit trees. The towns of Stamford and
Oakham are each 6.5 miles from
North Luffenham Hall, while trains to
Kings Cross can be got from Market
Harborough, approximately 22 miles
away. Access to the A1 is 5.5 miles
away.
Contact www.struttandparker.com
020 7318 5190.
North Luffenham Hall, Rutland
Strutt & Parker Guideprice: 3.45m
Above: The serene gardens surrounding the 16th-century building. Right: The updated but authentic interior
This 16th-century home is perfect for the person with everything, says Amelia Brust
London townhouses
with space to explore
4 bedroom townhouses that offer fantastic and stylish living for
the price of a two bedroom apartment in neighbouring boroughs.
Offering over 1250 sq ft of internal living space with high
specication including four bedrooms, fully glazed garden room
with bi-fold doors, bringing the outdoors in, and taking advantage
of your own private garden.
Ready for move-in from February 2012
Pre-Showhome prices from 535,000*
020 3538 3403 www.ninehouses.co.uk
*Price correct at time of going to press. Computer generated images of NINE.
DAUBENEY ROAD, HACKNEY, E5.
Royal Borough of Greenwich
CityPoint SE9
www.kidbrookevillage.co.uk
Our vision
for your future
Contact us to book your appointment to view - call 020 8150 5151
1, 2 and 3 bedroom apartments and penthouses from 222,500
3 bedroom Mews Houses from 430,000
Sales & Marketing Suite and Show Apartments open daily 10am to 6pm (Thursdays until 8pm)
Kidbrooke Village Sales and Marketing Suite, Wycombe Court, 99 Weigall Road, London SE3 9YY
New Sales and Marketing Suite now open
For village life only fifteen minutes from London Bridge
*

Kidbrooke Village. A new village for London.
Proud to be a member of the Berkeley Group of companies
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Appointed agent: Delivered in proud partnership with:
City Point at Kidbrooke Village offers stylish apartments with a concierge and residents gym, in a beautiful green setting in the
Royal Borough of Greenwich, only moments from Blackheath Village. Further benefits will include sports facilities, shops, bars,
restaurants, schools, healthcare, a hotel and a new transport hub, with train journey times to London Bridge of only 15 minutes*.
Housebuilder of
the Year 2010
Internal Photographs of Silverhind
Show Home. Computer Generated
Illustration, Silverhind.
Where cutting edge
technology meets
ultimate luxury living...
An exclusive collection of just
14 two and three bedroom
luxury apartments
iPad integrated controls
JSVPMKLXMRKYRHIVSSVLIEXMRK
and multi-room entertainment
music/media system
Prices from 539,995
Telephone: 0208 281 2785
Email: silverhind@weston-homes.com
Visit: www.weston-homes.com
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CURRENT MORTGAGE DEALS Source: MoneySupermarket.com
32
cityam.com
PROPERTY FOCUS ON: SOHO
MEARD STREET, W1F
Price: 1.9M
While this property is located in the heart of Soho, Meard Street is a relatively quiet residential
location. The Grade II-listed building boasts contemporary interiors, a spacious double bedroom
and access to a highly sought after private roof terrace. Contact Foxtons on 020 7973 2000
HAT FACTORY AND BEAVER BUILDING, W1F
Price: 1.5m
The property stretches an impressive five floors, with three bedrooms and two bathrooms. The
natural stone flooring has under heating. The closest transport links are Oxford Circus and
Tottenham Court Road tube stations. Contact James Lang LaSalle on 020 7993 7395
BEAK STREET, W1F
Price: 3.99m
This corner four-bedroom semi-detached house is located near Golden Square. It stretches six
floors, has three kitchens and a basement, currently used as a bar, which can be put to other use.
Contact Kinleigh Folkard & Hayward on www.kfh.co.uk or 020 3280 3541
UPPER JOHN STREET, W1F
Price: 1.35m
This first floor, two-bedroom 86 sq m apartment features a large open plan kitchen, high-specifi-
cation interiors and ample room for socialising in a generous reception room. Contact Foxtons on
www.foxtons.co.uk or 020 7973 2000
MARSHALL STREET, W1F
Price: 2.39m
Situated on the fourth floor of the Regent Penthouse, this two-bedroom apartment has a full
kitchen, open reception room, and access to a communal garden. The property is near the Marshall
Street Baths, while Oxford Street is the closest tube. Contact Knight Frank on 020 7881 7722
Q
MY FLAT has been for sale
for 6 months and I think I
should take it off and try
again in the New Year. My
agent doesnt agree, whos right?
A
SELLING your home is
stressful. Keeping your
things in storage, having to
keep your place tidy in case
buyers bother turning up for a
viewing, and then walking your
dogs while theyre in your flat can
be a real pain.However, while
many people had hoped that the
autumn market would prove busy
after a notably quiet summer, it
doesnt seem as if the market is
going to pick up until the New
Year. I am generally of the opinion
that trying to sell your house over
the Christmas period is a waste of
four weeks of marketing, too, so
taking a break might do you some
good, but be prepared for
a long layoff. Things wont get
better overnight. But your agent
might be right. If youre not
particularly troubled by the
inconvenience of viewings and are
keen to sell, it would be wise to
leave it on the market. The
lackadaisical nature of the market
seems here to stay and it rarely
kicks back to life until mid-
February. It is unlikely, then, that
returning your property to the
market in the New Year will prove
more advantageous than keeping
it on. All it takes is one person, the
right one, to see it and buy, and by
taking your house off, you might
miss them.
DIRECTOR, DOUGLAS & GORDON
ED MEAD
Q
A
and
Unfazed by viewings? Keen to sell? Keep your house on the market
Soho continues to be a popular destination
for anyone wanting to be at the heart of
what the capital has to offer. Located
between Piccadilly Circus and Oxford Street,
residents have many of Londons most
visited attractions on their doorstep.
The streets are lined with boutique eateries
and contemporary fashion stores and the
close proximity of Shaftesbury Avenue
means that the best in theatre is only a
stones throw away.
The location is ideal for anyone working
centrally but the abundance of tube stations
and bike docks on offer, make transport
easy whatever the destination.
The strong demand for properties in the
area and the launch of new developments
means that prices continue to increase,
making it a worthwhile place to invest in.
NEED TO KNOW | AREA INSIGHT
LOCAL AREA
|
PRICES
SOURCE: HOME
Detached Semi-Detached Terraced Flats
W1 4.45m 5.38m 6.56m 1.92m
Lender Fixed/Flexible Rate Until APR Maximum Loan
(per cent) (per cent) to Value (per cent)
Chelsea BS Flexible 2.54 November 2014 5.3 70
Yorkshire BS Flexible 2.59 December 2014 4.7 75
HSBC Flexible 2.64 Term 2.8 60
West Bromwich BS Flexible 2.64 November 2014 3.9 75
Norwich & Peterborough BS Flexible 2.69 2 years 4.7 75
Tesco Bank Fixed 1.99 December 2014 4.0 60
Santander Fixed 2.39 December 2014 4.6 60
Halifax Fixed 2.39 February 2015 3.9 60
HSBC Fixed 2.44 December 2014 3.9 60
FOCUS ON:
SOHO
With Easy Start* we can help you make that all important move
heres how it works:
You own 100% of your home - and pay just 85% of the price now
Well give you an interest free loan for 5 years for the remaining 15%
A 5% deposit is required to secure your mortgage
REDHILL
Surrey RH1 2LH
4 bedroom townhouses
from 449,995 or
382,500 with Easy Start
*
Marketing Suite and Show Home
open daily 10am 5pm
0845 260 6606
lindenhomes.co.uk/watercolour
QR scan me now
*On selected homes only, subject to Easy Start terms and conditions and only available to customers where a primary mortgage is required to secure the purchase. 382,500 represents 85% of the full purchase price of 449,995.
Mortgage application will be subject to status. Prices correct at time of going to press. Photographs show Water Colour. Linden Limited. Reg. No. 01108676. Reg. O ce: Cowley Business Park, Cowley, Uxbridge, Middlesex UB8 2AL.
A 4 bedroom townhouse from 382,500
*
with Easy Start
Selling Agent: Cubitt & West
YOUR HOME MAY
BE REPOSSESSED IF
YOU DO NOT KEEP UP
REPAYMENTS ON YOUR
MORTGAGE OR ANY
OTHER DEBT SECURED
ON IT.
unparalleled views
From 222,500
*
Striking 1 & 2 bedroom apartments ideally
located for getting into the city
Panoramic image taken from 16th Floor
020 7089 3917 centralparkliving.co.uk TEXT CENTRAL26 to 60123
live london live central park *based on 1 bed apartment. Prices correct at October 2012. Journey times source: TFL website.
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cityam.com
PROPERTY FOCUS ON: SOHO
LISLE STREET, WC2H
Price: 1.59m
Located on the fourth and
fifth floor of a Dutch-
inspired building, this two
bedroom, two bathroom
duplex penthouse has a
large drawing room, a spi-
ral staircase and a hot tub
located on its roof terrace.
Leicester Square station is
close by. Contact
Winkworth on 0207 240
3322 or
www.winkworth.co.uk
SHAFTESBURY
AVENUE, WC2H
Price: 1.9m
This three bedroom, two
bathroom Victorian red-
brick flat is located on the
iconic Shaftesbury
Avenue. The master bed-
room has an en-suite
bathroom and the flat also
features an impressive
sized dining space and
kitchen. The property is
fully air-conditioned and
has double-glazed win-
dows throughout. Contact
GLP on 0845 315 4145 or
www.greaterlondonprop-
erties.co.uk
SANDRINGHAM
COURT, W1F
Price: 675,000
This one-bedroom apart-
ment is ideal for anyone
looking to take on a proj-
ect. While the property
requires updating, it pro-
vides the perfect opportu-
nity to re-model it to meet
your requirements.
Located on a quiet cul de
sac near Carnaby Street, it
comes with a spacious
open plan kitchen and
ample storage space.
Contact GLP on 0845 315
4145 or www.greaterlon-
donproperties.co.uk
Scan Here For More Info
Images of Millennium Horizon exterior and of the show apartment.
* = 47,500 for a 25% share of the full market value of 190,000
STOP
RENTING
1&2
NEW
APARTMENTS
BEDROOM
SHARED
OWNERSHIP
Millennium Horizon apartments are a collection
of contemporary one and two bedroom
apartments in the heart of Canning Town.
The apartments offer modern specications,
a host of eco features, with some apartments
beneting from views of the City including
the Millennium Dome. You could be owning
your own home at this stunning development
with the help of the Governments part-buy,
part-rent Shared Ownership scheme. Prices
start from as little as 47,500 for a 25% share.*
VIEWING NOW
T: 020 8357 4444
E: sales@nhhg.org.uk
www.nhhg.org.uk/millennium
MillenniumCityAM
"The Soho market is busier than ever. Investors from round the world are
flocking to Soho, attracted by the developments and the on-going
regeneration of the area. The traditional Mayfair buyers are also
increasing their search area to include West Soho as you get more for
your money and the on-going redevelopment of the area means that not
only is it a great place to live but is also a great place to invest."
Robert Hill, CEO of Greater London Properties
KEW BRIDGE
ROAD,
LONDON
Exclusive
Investor Seminar
Hosted by St James with guest speaker
from property experts
London residential property market update
Demand and supply
Growth predictions and statistics
With advice from Barnard Marcus Lettings Director
for West London, Sophie Matthews
Thursday 15th November, 4pm 8pm
with Seb Warner, Knight Frank LLP
Barnard Marcus, 273 Chiswick High Road, Chiswick W4 4PU
Saturday 17th November, 9.30am 2.30pm
with Jeremy Wharmby, Knight Frank LLP
Caf Rouge, 85 Strand-on-the-Green, Chiswick W4 3PU
Call now to guarantee your place 020 3005 2957
1, 2 & 3 bedroom apartments from 269,995
For more information contact the Sales Team,
273 Chiswick High Road, Chiswick, W4 4PU
www.kewbridgewest.co.uk/investorseminar
Prices and details correct at time of going to press.
Computer generated image of Kew Bridge West.
Proud to be a member of the Berkeley Group of companies
Prices from
51,875*
* represents a 25% share
Tel: 0208 308 4193
Email: homes@gallionsha.co.uk
Web: www.parksideviewhomes.co.uk

OVER
40%
RESERVED
1, 2 & 3 BED APARTMENTS
Available through Shared Ownership

on selected
apartments for all
completions by
31
st
Dec 2012.**
**Ask for details.
Conditions may apply.
FREE
LEGAL FEES OR
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T
HE LUXURY PROPERTY SHOW is
returning to South West London's
prestigious Hurlingham Club and
exhibitors from around the world
will display a range of unique and
striking homes, which represent some
of the finest on the international
market.
Television property expert Melissa
Porter will host this intimate gathering
of industry-leading figures, many of
whom will hold seminars on their
particular area of expertise.
These seminars will address topics
including property development, buy
to let, the second home market,
interior design and property portfolio
management in emerging markets.
Integral to the international
property market is foreign currency
exchange and Vik Rampersand of KBR
Foreign Exchange, one of the sectors
fastest growing companies, will speak
at the Hurlingham Club on the 30th
and 31st of October about purchasing
property using an FX broker:
When purchasing or selling
property abroad always use a foreign
exchange broker like KBRFX. We can
help make all-important saving,
sometimes up to 5%. A good FX broker
will make a lot simpler a process which
many may find daunting
Sign up today at
www.luxurypropertyshow.com get your
ticket to get access to expert advice on
property law, the best current locations
for investing in foreign property and
find out what types of properties
should be in your investment portfolio?
The Luxury Property Show
Alexander Miles
Beach Projects
Beautiful South
Blacktower Financial Management
Buena Vista Park Villas
Castlewood Group
Corcoran Group
Desiderata Investments
ElysiumProperties
Evergreen North Cyprus
FCI London
Fine French Entre
First Rate FX
Grand Sud Investissements
Griwaplan AG
Hamiltons Removals
Hra International Real Estate
The Hideaways Club
Homes Of Quality Member of
Frank Salt Real Estate Group
International Homes Luxury
Collection
KBR Foreign Exchange
Keskinler Homes
Las Colinas Golf and Country Club
Lower Mill Estate, Cotswolds
Luxury Homes By VAPF
Luxury Swiss and French Riviera
Property
Mas Bel Canto
Mayfair International Realty
Michel Et Rmi Rippert
Oasis Land Development
Pacific Boutique Properties
Peninsula Associates LLC
PlatinumProperties
Prestige Property Design AG
Prestige MLS
Rightmove Overseas
Solid Estate Advisers
Swiss Prestige Properties
The Spang Morkovine Group
Touchwood UK
Watermark Cotswolds
Zoneblue Design Ltd
Exhibitors at the Luxury Property Show 2013:
Save, Spend and Splurge at the Luxury Property Show
Whether shopping for an
affordable holiday home, a
retreat in the Great British
countryside, a chalet in
Switzerland, a penthouse
apartment in New York or a
luxurious villa in Malta, The
Luxury Property Show has it
all. With properties ranging
from 200,000 to upwards of
10million, there really is
something for everyone inter-
ested in purchasing property.
Now in its sixth year, the show
attracts exhibitors from the
Cotswolds to the Caribbean.
The Hampton from 650,000 -
Cotswolds Watermark, UK
Hamptons Oceanfront Southampton
Estate 19m approx. - The Corcoran
Group, USA
CZP Chalet -
15m approx.
- Chalet
Zermatt Peak,
Switzerland
GriwaPlan
Chalet - 3.7m
including
furniture -
Griwaplan AG,
Switzerland
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WHAT WOULD
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Reserve your private viewing of a completed apartment now.
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0844 544 9030
sales@theheron.co.uk
www.theheron.co.uk
38
LONDON
BAROMETER
ED MEAD DIRECTOR OF DOUGLAS & GORDON
cityam.com
PROPERTYSALES
As a result of on-going
mortgage difficulties and
lengthening chains,
September saw the
average times from
agreeing a deal to
exchange increase to 12
weeks, twice what it was
a year ago.
With an amazing 30 per
cent fewer family houses
over the same period, it
seems that many are
deciding to stay put or, if
relocating, are renting out
their house rather than
selling.
For many people this
market is making them
feel as if they have to
paddle faster to stay in
the same place.
Autumn could present great opportunites for prospective sellers
DOUGLAS & GORDON AVERAGE LONDON SALES PRICE INDEX
Q3 2011 Q4 2011 Q1 2012 Q2 2012
1 bed flat 383,750 387,500 404,167 408,333
2 bed flat 570,083 579,583 608,333 620,833
3 bed house 1,257,500 1,277,083 1,340,000 1,367,917
4 bed house 1,905,000 1,933,333 2,006,250 2,025,000
Supply
500
400
300
200
100
0
Jan JunJul AugSepOct NovDec FebMar Apr May
2010 2011 2012
July 2010
high(448)
Dec 2006
low(127)
Supply & Demand
Jan Jun Jul Aug Sep Oct Nov Dec Feb Mar Apr May
1600
1400
1200
1000
800
600
400
200
0
Demand 2012
Demand 2011
Supply 2012
Supply 2011
1200
1000
800
600
400
200
0
Demand
Jan JunJul AugSepOct NovDec FebMar Apr May
2010 2011 2012
Jan2012
high(1029)
Dec 2011
low(211)
020 8950 5079
WWW.BENTLEYPRIORYSTANMORE.COM
Bentley Priory, The Common, Stanmore HA7 3HT
A UNIQUE OPPORTUNITY TO LIVE WITHIN A 57-ACRE, GATED PARKLAND ESTATE
Scanthis QRcode
with your Smartphone
t A luxury house with 2,481 sq ft
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t Only 35 minutes to Bond Street and
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Stanmore Underground
t Close to some of North Londons
most sought after schools
t Exclusive properties with views
over London city centre
t An estate with 12 acres of natural
parkland and nine acres of woodland
4-Bedroom Houses
from 1.85m.
Showhome open for viewing every day.
SPECTACULAR
4-BEDROOM HOMES
JUST 35 MINUTES FROM BOND STREET
Welcome to a world of stylish living and breathtaking views.
www.bellway.co.uk
Thursday 1st November, 5pm - 8.30pm New Festival Quarter
Skylon, 41 Upper North Street, London E14 6FY.
Enjoy a glass of champagne and canaps in our marketing suite before heading up to
Skylons roof terrace, where you can immerse yourself in the city lights.
Our dressed show home and on-site gym will also be open to enable you to appreciate
the ner details and envisage City living at the New Festival Quarter.
To RSVP and make an appointment for the evening, please contact the ofce via
telephone on 0845 459 5020 or alternatively via email to
newfestivalquarter@btconnect.com
You are
cordially
invited to the
launch of
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40
cityam.com
PROPERTY INTERIORS
Its out with
the new, in
with the old
Rough luxe is the new trend in the
world of interiors, says Naomi Mdudu
S
AY goodbye to the slick,
shiny interiors that
have gripped your
imagination for the
past few years and get ready
to embrace something less
severe. A homely aesthetic is
the trend to know about this
season.
If the idea of pieces that
have been acquired over
time, perhaps a bit on the
lived-in side, and rather
rough around the edges
springs to mind, youre on
the right track.
Far from being stuffy or
over-styled, rough luxe
focuses on rustic, homely
pieces that infuse
personality while also
paying homage to the past.
Antique furniture is a
great place to start the
older and more unique it
looks, the better. But its not
all about buying more
pieces. Playing with original
features in your home works
too. Old fireplaces and
wooden floors should be
celebrated.
And dont be afraid to play
with textures and
contrasting prints with
accessories. The mission is to
create something distinctive
and personal and more than
anything, a comfortable
place that you want to spend
time in.
To say that the trend is
entirely new would be
wrong. The style has, in fact,
quietly gained momentum
for a while but the recession,
along with the backlash
against minimalism, have
no doubt been factors in its
resurgence.
Galerie du Gaston oval clock
50, Graham & Green
www.grahamandgreen.co.uk
Bidjar wool rug
875, Liberty Rugs
www.liberty.co.uk
Ornate hall mirror
300, John Lewis
www.johnlewis.com
The Dexter armchair
675.75, Graham & Green
Voyage como velvet cushion
35, John Lewis
www.johnlewis.com
Maharani coffee table
225, John Lewis
www.johnlewis.com
Lambswool throw
110, John Hanley
www.liberty.co.uk
Home comfort magnets
12 for set of 6, John Lewis
www.johnlewis.com
Velvet geometric pillow
30, John Lewis
www.johnlewis.com
Fir wood coat hanger
38, Graham & Green
Register your interest early
for the launch
QR scan me now
01883 334 443
lindenhomes.co.uk/salters
SALTERS YARD
Bermondsey SE1 3AA
1, 2 & 3 bedroom apartments
3 bedroom homes
In the heart of fashionable Bermondsey
A short walk from Shad Thames
and London Bridge tube
Some with Winter Gardens
Private balconies and terraces
Details correct at time of going to press. Distances approximate.
LAUNCHI NG SATURDAY 3RD NOVEMBER STUNNI NG NEW HOMES I N BERMONDSEY
THERE might not be a changing of
the guard on Merseyside, but
Everton are certainly enjoying a
better period than their
neighbours.
Having finished last season
four points and a place in front
of Liverpool, the Toffees have
kicked on, beginning this
campaign in style, while the
Reds have floundered.
David Moyes charges started
with a home win over Manchester
United and have lost just once
since away to West Brom
meaning that they sit in the
Champions League places going
into the weekend.
By contrast, it took Brendan
Rodgers six games to clock up his
first league maximum. His new
team are two points behind his old
one, Swansea, and six in arrears to
their local rivals.
Their nine-point haul puts them
closer to the relegation zone than
the top four.
Although Liverpools fortunes
are improving after two wins and a
draw in their last three league
games, I expect them to suffer a
setback here.
A contributing factor is likely to
be Thursdays Europa League
contest. Even though it was at
Anfield, that doesnt give Rodgers
small squad long to recover.
For Everton, 13/8 favourites with
Coral, a victory would be sweet
revenge after losing all three
editions of the Merseyside derby
home, away and at Wembley in the
FA Cup semi-final in 2011/12.
At a meaty 14/1 with Coral,
Everton to win 2-0 in the correct
score market is a very interesting
proposition, while selling total
goals at 2.5 is advised with Sporting
Index.
The Spain internationals Fernando Torres (right) and Juan Mata (left) have been in fine goalscoring form for Chelsea this season
42
THEPUNTER
FOOTBALL TRADER
BEN CLEMINSON WITH HIS BEST FOOTBALL BETS OF THE WEEKEND
CHELSEA........................................
MANCHESTER UNITED...................
Sunday 4.00pm
EVERTON.......................................
LIVERPOOL....................................
Sunday 1.30pm
SOUTHAMPTON.............................
TOTTENHAM..................................
Sunday 3.00pm
nPointers
Everton at 13/8 with Coral
Everton to win 2-0 at 14/1 with Coral
Sell total goals at 2.5 with Sporting Index
nPointers
Chelsea at 6/4 with Betfred
Chelsea to score first at 10/11 with Coral
Sell total goals at 3.1 with Sporting Index
ROBERTO Di Matteo delivered
his old boss a reality check at
White Hart Lane last time
out, but Tottenham will be
confident of bouncing back
against Southampton in one
of the other games on
Sundays undercard.
It was a decent side that
Andre Villas-Boas took to
Slovenia to face NK Maribor
last night, but Spurs should
be able to shake of the
effects of the trip against
their lowly opponents.
One huge plus for the
Portuguese manager will be
the return of Gareth Bale,
who missed the Chelsea game
and yesterdays due to the
birth of his daughter. For Bale
it will be a first trip back to
former club Southampton
and he will not be lacking in
motivation to continue his
fine form.
If Southampton have any
hope it is that the four points
they have gathered this
season were all claimed at
home, and that they were
taken in their last two games
at St Marys, when they beat
Aston Villa 4-1 then drew 2-2
with Fulham.
But there have been six
defeats along the way,
including 6-1 to Arsenal, 3-1
to Everton and 4-1 to West
Ham in their last match.
Spurs havent blown
anyone apart yet but they
have won their last two road
games, 3-1 at Reading and 3-2
at Manchester United and
they sit fifth in the table.
They have scored in every
game and at least twice in
each of their last five.
The visitors look a sound
investment at 5/6 with Coral
and this could be another 2-0
win, available at 10/1 with the
same firm.
nPointers
Tottenham at 5/6 with Coral
Tottenham to win 2-0 with Coral
ENGLANDS representatives had
their limitations exposed in the
Champions League this week.
Chelsea, Manchester City and
Arsenal all suffered deserved defeats
while Manchester United were forced
to come from behind after going
two goals down to Braga after
20 minutes.
Of the losing trio Chelsea have the
least to worry about. Im not reading
too much into the Blues defeat
against Shakhtar Donetsk it was
their first Champions League loss
under Roberto Di Matteo and, in
any case, no English side has won
in Donetsk.
Arguably, despite picking up three
points, Uniteds performance leaves
them with more to ponder. There
was certainly much head scratching
after conceding a pair of early goals
to Braga, both of which were scored
by the Portuguese sides striker Alan.
In all competitions, that was the
eighth time in 12 games this term
that the Red Devils have conceded
the first goal. It is a trend that will
worry Sir Alex Ferguson when United
visit Stamford Bridge on Sunday in
the biggest game of the season so far.
Uniteds defensive frailties certainly
give plenty of encouragement for
anticipating Chelsea to score first,
and they can be backed to do just
that, at 10/11 with Coral.
It is also worth betting on Di
Matteos men as favourites to snare
the three points. They are 6/4 with
Betfred and that looks good to me
considering it has been a decade
since United last won at the Bridge in
the Premier League.
Chelsea have cruised to the top of
the table after winning seven and
drawing the other of their eight fix-
tures. And no matter the result on
Sunday, they are guaranteed to
remain at the summit, with the safe-
ty net of a four-point gap over the
Manchester clubs already opened up.
One concern for Di Matteo will be
John Terrys absence. Although, in
the middle of his domestic suspen-
sion for racially abusing Anton
Ferdinand, Terry is at least spared a
public reunion with the QPR centre
backs brother, and his ex-England
team-mate, Rio Ferdinand.
David Luiz and Gary Cahill coped
without Terry at White Hart Lane
last weekend and will have to be
on top form to repel Uniteds
attacking riches.
Robin van Persie netted a hat-trick
on this ground last season in a 5-3
Arsenal victory, while Wayne Rooney
scored a brace and Javier Hernandez
grabbed a late equaliser as United
came from three goals down to earn
a point in SW6 in February.
Hernandezs two goals against
Braga may force his name into what
could be a very attacking starting XI.
But lets not forget, Chelsea have
the best goal difference in the divi-
sion, on plus 13. They also share the
responsibility of putting the ball in
the net, with Juan Mata and
Fernando Torres top scorers on half a
dozen goals each. The Spaniards are
among six different players having
struck at least three times in all com-
petitions. United have only two play-
ers to have scored that many,
Hernandez (3) and Van Persie (8), on
whom they are particularly reliant.
Considering the last 11 contests
between these teams have seen a
haul of 35 goals 10 of which came
in the last campaign you might
expect me to tip up a buy of goals.
However, Sporting Indexs spread is
3.1-3.3 and at that price I just have to
sell in what could be a tight game.
Chelsea visit
looks a Bridge
too far for
Man United
once again
T
HE two-year-old Racing Post
Trophy (3.05pm) is a race
that often throws up clues
for the following years big
events with previous winners,
including Motivator, Authorized
and last years victor Camelot, all
going on to win Classics.
Its a race that Aidan OBrien
targets with his best juveniles
and the maestro has trained six
winners of this showpiece
already. When the yard really
fancy one of their runners they
normally only run that horse
and, having removed their other
five at the final declaration
stage, it looks safe to say they
are keen on the once-raced
Kingsbarns.
As big as 8/1 at the start of the
week, the son of Galileo has
been backed off the boards and
is now 15/8 with Coral. Last year
Camelot was heavily supported
throughout the week and won
in effortless style at odds-on. It is
quite likely Kingsbarns could go
off even shorter and, although
he could be anything, the value
has long gone.
Instead, VAN DER NEER from
Richard Hannons yard looks
worth supporting. Despite his
reputation as the best juvenile
handler in the land, Hannon
has never won tomorrows
feature but this Dutch Art colt
must go close. Working with the
best of them back home, he was
an impressive winner on debut
and stepped up to seven
furlongs to triumph with
authority over a very well-
regarded John Gosden runner
last time.
Neither the ground nor the
step-up to a mile should hold
any fears and at 5/1 with Coral,
he is worth a bet.
In the preceding race (2.30pm)
DUNGANNONshould give a
good account. Andrew Baldings
inmate has been running in
competitive handicaps all
season and dropping back to
five furlongs will see the pacy
son of Monsieur Bond in a
better light.
In the 4.10pm, INVINCIBLE
WARRIOR can make a bold bid
for Listed glory. He made a good
impression on debut and then
won readily next time out. After
just two starts he is less exposed
than a number of these and the
Brian Meehan yard is firing.
Today at Turf Moor, BREDEN
can land the opening Yorkshire
Radio Maiden Stakes (1.40pm).
Gosdens charge was slightly
green on debut but showed
promise and he can expect to
improve on that pipe opener in
a moderate looking contest.
Meehans PATENTLY can
kick off a good weekend for
the Manton team 10 minutes
later in the Join Hot To Trot
Racing Club Maiden Stakes at
Newbury. Meehan debutants
always improve for their first
run and a better display is
expected this afternoon.
ANCIENT CROSS is a typical
sprinter that you need to catch
just right but everything looks
in his favour for the 3.15pm six-
furlong dash. He may not have
won for some time but a series
of consistent efforts have made
it hard for the handicapper to
relent. However, now 4lb lower
than his last win and drawn up
with the pace, Paul Mulrennans
mount can go close for an in-
form Mick Easterby yard.
Richard Hannon could break his duck in tomorrows Group One Racing Post Trophy at Doncaster
RETURNING England wing Ugo
Monye believes he is returning to his
best form following an impressive
start to the season.
Monye was one of four additions
to England coach Stuart
Lancasters 32-man squad
yesterday. The 29-year-old
flyer has already racked
up four tries to sit joint
top of the league
scorers for Harlequins,
who are bidding to
BY PAUL EDDISON
avoid a third straight Premiership
defeat in a row on Sunday against
London Irish.
Ive been happy with my form,
my scoring and involvement in the
game, said Monye. I feel I have
a lot more to offer and will work
on that week on week but its
been a real good start.
Aviva are proud to sponsor
Aviva Premiership Rugby. Visit
premiershiprugby.com
43
RACING TRADER
BILL ESDAILE WITH HIS BEST BETS AT DONCASTER AND NEWBURY
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nPointers
BREDEN 1.40pm Doncaster (today)
PATENTLY 1.50pm Newbury (today)
ANCIENT CROSS e/w 3.15pm Doncaster (today)
DUNGANNON e/w 2.30pm Doncaster
(tomorrow)
VAN DER NEER e/w 3.05pm Doncaster
(tomorrow)
INVINCIBLE WARRIOR e/w 4.10pm Doncaster
(tomorrow)
Van Der Neer can
deliver Hannons
first Racing
Post Trophy
Ugo Monye has scored
four tries this season
Monye making his mark after
returning to international frame
WORLD No4 Rafael Nadal has been forced to
withdraw from the impending Paris Masters and
Londons ATP World Tour Finals because of a long-
term injury to his left knee.
The Spaniard has yet to compete since his second-
round defeat to Lukas Rosol at Wimbledon in June
and has since missed both the Olympics and US Open
but regardless remains confident that he will make a
complete recovery.
I will hopefully resume practice soon since I am
making good progress with my recovery from injury
said Nadal. Its disappointing to miss the last two
tournaments of the season, but its not a surprise.
Nadals season over
with knee injury
BY DECLAN WARRINGTON
IN BRIEF
Pietersen free to join England
nCRICKET: Kevin Pietersen is to join
Englands training camp in Dubai after
his Delhi Daredevils side last night
exited the T20 Champions League.
Cleverly title defence in doubt
nBOXING: Nathan Cleverlys WBO
light-heavyweight title defence against
Ryan Coyne could be off over Coynes
legal dispute with promoter Don King.
Results
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SQUAD
Forwards: M Botha, D Cole, J Haskell,
P Dowson, D Hartley, T Johnson,
C Lawes, J Marler, B Morgan, T Palmer,
G Parling, C Robshaw, M Vunipola,
T Waldrom, D Wilson, T Wood,
T Youngs
Backs: A Allen, C Ashton, B Barritt,
M Brown, D Care, L Dickson, O Farrell,
T Flood, A Goode, J Joseph, U Monye,
C Sharples, M Tuilagi, J Turner-Hall,
B Youngs
*Captain to be named on Tuesday
ARSENAL majority shareholder Stan
Kroenke was last night accused of
plotting to reward himself with a
dividend despite the clubs failure to
end their trophy drought following a
tempestuous AGM.
The American sports mogul, who
spoke only three times on a rare visit
to north London, refused to rule out
issuing a dividend when pressed by
shareholders disgruntled at high
ticket prices and an estimated 70m
unspent cash reserve.
Kroenke, who took his Arsenal
shareholding to 67 per cent last year,
insisted it was not his decision and
cited his track record at US sports
franchises including the Denver
Nuggets basketball team.
First of all theres a tendency to
direct these questions at me this
club is run through the board. Ive
always been respectful of that
process, said Kroenke.
Weve never put any debt on this
club for acquisition, weve never in
any meeting said money is not
available to spend. We have a record
of reinvestment and its there for
everyone to see.
Fans groups criticised Kroenkes
comments, which the Arsenal
Supporters Trust said indicated he
would look to issue a dividend.
AST is totally against dividends
being paid and money taken out of
the club, said AST spokesman Tim
Payton. It is of great concern that
Kroenke clearly intends to do that.
Chief executive Ivan Gazidis
backed Kroenke at the meeting, in
which board members were heckled
over the clubs ticketing and transfer
policies and the teams failure to win
a trophy since the 2005 FA Cup.
Dividends are a board decision,
said Gazidis. Look at the track
record of the board, which has
consistently reinvested funds back
into the club.
Gunners fans
rap Kroenke in
dividend row
TOTTENHAM manager Andre Villas-
Boas last night said that he was
content to take a point from their
Europa League Group J fixture away
to Maribor after his team had unex-
pectedly fallen behind.
Gylfi Sigurdsson scored a second-
half equaliser after Robert Beric had
given the Slovenians a half-time lead
with a goal scored only a matter of
minutes before the break.
Tottenham consequently have three
points from three games and are in
third place in a group which is
among the hardest in a tournament
the Portuguese manager wants to
win, though after an underwhelm-
ing opening 45 minutes he revealed
he was pleased to settle for the point
that had earlier appeared unlikely.
The second half was extremely
good, the first half was not so good,
Villas-Boas said. We came back
into the game, which is pleasant to
see again and it is good for us to
bounce back.
It is obviously not the full result
we wanted bearing in mind the draw
between Lazio and Panathinaikos,
but certainly we will take a point.
The group is completely open. What
we face now is two games at home
and I think we are in a good position
in the group. We are in third posi-
tion. We have three games to play,
there are nine points to play for.
You see the group it is very
tight. It is not a group where the
leader has run off with points.
Group leaders Lazio have accumu-
lated a total of just five points which
means that though Spurs remain at
risk of what Villas-Boas would consid-
er to be a premature elimination,
they are equally capable of finishing
first and advancing to the tourna-
ments knockout stages in a perhaps
unexpectedly impressive manner.
The at times challenging balancing
act between a teams European and
domestic pursuits may be something
with which the London club are
struggling but it regardless remained
obvious that they were the stronger
of the two teams and, in reality, it was
against the run of play that the home
side took the lead.
Jan Vertonghen, Sandro and
Jermain Defoe had all threatened but
it was Beric who first scored only
three minutes before half-time with
an almost effortless two-yard tap in
from Alex Mejacs run and pass.
By 13 minutes after the restart
Sandro and Defoe had already gone
close and it was the latter whose pow-
erful shot prompted a block from
Mejac that fell to Sigurdsson to bun-
dle in from only a yard, and it was
ultimately a move that was to prove
crucial.
Rookie Vunipola ready to face
worlds best, say England chiefs
UNCAPPED Saracens prop Mako
Vunipola has been backed to take
the England set-up by storm after
the 21-year-old was called up for
next months autumn
internationals.
The youngster is one of four
changes to the squad for Tests
against Fiji, Australia. South Africa
and New Zealand, with Leicester
hooker Tom Youngs also in line for a
debut and experienced duo Ugo
Monye and James Haskell recalled.
Loosehead Vunipola, who was
born in Wellington but is of Tongan
descent, has only made five starts for
Sarries but England forwards coach
Graham Rowntree insists he is ready
to face the worlds elite.
Ive no doubt hell make his name
in this autumn series. Ive got every
confidence in him. Im looking for a
fault in his game and I cant find one
at the moment, said Rowntree.
He has got himself fit. His form
has been exceptional. I like his
commitment to every aspect of the
game. He is a dynamic ball-carrier
and he loves a scrum. He respects all
the hard yards, the tackling, the
clearing out, the scrummaging. Hes
got his priorities right.
The Tottenham midfielder Gylfi Sigurdsson (right), an 8m arrival from Hoffenheim in the summer, scored his sides equalising goal
TEAM SKY last night became
embroiled in the purge on doping
sweeping cycling when coach Bobby
Julich left the British outfit after
admitting using banned substances.
The American confessed to taking
the blood-booster EPO between 1996
and 1998, when he was a pro rider
for Cofidis and finished third in the
Tour de France.
Julichs departure came after
Team Sky boss Dave Brailsford last
week demanded that all employees
own up to any past misdemeanours.
It follows the decision of world
governing body the UCI to strip
Lance Armstrong of his seven Tour
titles after a raft of charges from the
Team Sky show Julich the door
after coachs doping confession
US Anti-Doping Agency (USADA).
Julich, who joined Team Sky last
year and in July helped Bradley
Wiggins become the first Briton to
win the Tour, said he was losing his
dream job.
I apologise to everyone, especially
those associated with Team Sky for
my past indiscretions, he added. I
made some poor decisions and have
paid and will pay a huge price.
Brailsford praised Julichs
courage and stressed there had
been no doubts about his work with
us. He added: Although its never
easy to part, we believe this is the
right thing to do.
Armstrong, who was also banned
for life by the UCI, denies doping but
has not contested USADAs charges.
LIVERPOOL last night secured
a narrow 1-0 victory over
Anzhi Makhachkala to take them
top of the Europa Leagues Group
A after 20m winger Stewart
Downing who has yet to largely
feature since the summer
appointment of Brendan Rodgers
as manager cut inside from the
left wing in the 53rd minute and
unleashed a powerful angled shot
beyond Gabulov for the winner.
Newcastle, meanwhile, defeated
Club Bruges 1-0 at St James Park
with a 48th-minute goal from
former Manchester United
midfielder Gabriel Obertan.
44
BY FRANK DALLERES
BY FRANK DALLERES
BY FRANK DALLERES
SPORT
cityam.com/sport
Spains Rafael Nadal has
suffered a new injury blow
Tennis: Page 43
@cityam_sport
Sigurdsson saves Spurs
European ambitions
MARIBOR....................................1
TOTTENHAM................................1
BY DECLAN WARRINGTON
EUROPA LEAGUE

Cityam 2012-10-26

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