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Sports Direct founder Mike Ashley said a summer of sport pushed up sales and profits
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Crispin Odey boosts Ashleys
hopes of a 39m bonus pot
CRISPIN ODEY, the influential hedge
fund tycoon and Sports Direct
investor, said yesterday he was fully in
favour of the retailer reintroducing a
bonus scheme that could hand its
founder Mike Ashley a 39m windfall.
Odey Asset Management is Sports
Directs second largest shareholder
after Ashley and holds a 6.58 per cent
stake in the business.
Speaking to City A.M., Odey said of
Ashley: Hes a genius. If only there
were more entrepreneurs in
the country then it would
be a better game. He
added: Ashley is
playful and that
annoys the City.
Odeys comments
came after the
sports
retailer,
CHANCELLOR George Osborne
attempted to play down the impor-
tance of the UK governments credit
rating yesterday, just hours before
Standard & Poors became the third
and final major agency to put the
country on a negative outlook.
S&Ps verdict came at the end of a
day that had seen Osborne tell MPs
he is open to the possibility of the
Bank of England scrapping its two
per cent inflation target in favour of
a growth-based remit.
With the economy remaining slug-
gish and Osborne struggling to break
down the governments mammoth
annual deficit, S&Ps new lowered
outlook means that it considers there
to be a one in three chance that the
UKs prized triple-A rating could be
slashed in the coming year.
Fellow credit rating agencies Fitch
and Moodys put the government on
negative outlook earlier in 2012.
Speaking to the Treasury Select
Committee of MPs in Westminster
yesterday, Osborne said that credit
ratings were just one test alongside
others of the state of the govern-
www.cityam.com FREE
ment finances.
The ultimate test is what [rate] you
can borrow money at, he told the
committee. The test we have is one
we have to meet every week when we
go and try and sell our gilts.
The UKs gold-plated rating has pre-
viously been cited as evidence of the
coalitions deficit-reduction plans
gaining the confidence of analysts.
Shadow chancellor Ed Balls used
the lowered outlook to hit out at the
chancellors policies.
Standard & Poors is clear that it is
weak economic growth which has led
to their estimates for the deficit and
debt being revised up, Balls said.
In fact the chancellor is now set to
borrow 212bn more than he
planned two years ago because of his
failure on jobs and growth.
Yet S&P seemed to urge the coali-
tion to avoid a more profligate stance.
The outlook revision reflects our
view that we could lower the ratings
on the UK within the next two years if
fiscal performance weakens beyond
our current expectations, S&P said.
We believe this could occur in
particular as a result of a delayed and
uneven economic recovery, or a weak-
ening of political commitment to
consolidation, it added.
Weak economic growth has prompt-
ed wide debate on innovative forms
of monetary stimulus, Osborne told
MPs yesterday.
Osborne said he was glad that his
incoming Bank of England governor
was part of such global discussions.
Earlier in the week, Mark Carney
who will take over as governor next
summer said that adopting a nomi-
nal GDP target, which would take
both inflation and growth into
account, could in many respects be
more powerful than employing
thresholds under flexible inflation
targeting.
Osborne added yesterday: There
are a lot of innovative things happen-
ing around the world, referring to
the US Federal Reserves new targets
for unemployment.
Yet Osborne also told the committee
the Banks inflation target has
served us well, and that a new sys-
tem would need to provide very sig-
nificant rewards in order to be
adopted.
Carney will appear in front of the
committee on 7 February 2013.
ANDY SERKIS IS MAIN DRAW IN WEEKENDS HOTTEST RELEASE
BY KASMIRA JEFFORD
FTSE 100 5,929.61 -16.24 DOW 13,170.72 -74.73 NASDAQ2,992.16 -21.65 /$ 1.61 unc / 1.23 unc /$ 1.31 unc
BY JULIAN HARRIS
DOWNGRADE
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DEBT RATING
ISSUE 1,782 FRIDAY 14 DECEMBER 2012
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which also owns Lilywhites stores
and brands including Slazenger, said
it remained committed to a super-
stretch bonus share scheme after
shareholders revolted over a similar
plan in September.
Under the new scheme Ashley
could net 10m shares, which would
vest in 2018 if performance targets
were met. Ashley is deputy executive
chairman but draws no salary.
Shareholders had rejected the
original proposal to award Ashley
8m shares because of the limited
performance criteria and because
the scheme was potentially open to
other executives. Sports Direct
said the revised bonus scheme
addressed these concerns.
The news came as the firm
said profits rose from 99m to
125m on revenues up 22 per cent
to 1.1bn in the six months to 28
October.
Crispin Odey, founder of
Odey Asset Management
THE HOBBIT: OUR REVIEW

DAVID HELLIER: Page 2
THE EUROPEAN Central Bank (ECB)
will monitor the largest Eurozone
banks, the EUs leaders announced
yesterday, in a compromise which
represents a major step towards a
new banking union for the currency
area.
And after late-night meetings,
Britain secured voting rights which
it hopes will safeguard its position
as a major centre for Eurozone
finance.
They agreed the single supervisory
mechanism will see the ECB moni-
tor the largest 200 Eurozone banks,
with non-Eurozone member states
allowed to join if they wish.
The deal represents a compromise
between countries led by Germany
which wanted the ECB to monitor a
small number of banks, and those
like France which wanted the cen-
tral bank to supervise many more of
the 6,000 banks in the currency
area.
Overall the plan for a banking
union is designed to do more to
break the link between banks and
their governments, and give coun-
tries like Germany peace of mind
that a central authority has more
say over how banks in peripheral
economies operate. This is vital as
the banking union will play a role in
determining how banks could be
Fed begins bank stress tests
The US Federal Reserve is carrying out its
first ever system-wide stress test of bank
liquidity in a move that could force banks
to change their funding sources.
Known internally as C-Lar the
liquidity version of the Feds annual
comprehensive capital analysis and
review the examination only began
recently. According to people familiar
with the matter, it covers some of the 19
banks subject to the capital tests as well
as some of the largest foreign banks with
US operations.
Man Group faces GLG write-off
Man Group is weighing up significant
accounting write-offs next year relating
to its 2010 acquisition of GLG Partners, a
move that will raise eyebrows after the
announcement on Monday that former
GLG boss Emmanuel Roman is to be the
new chief executive of the company.
Spain freezes Mubarak assets
Spain has frozen 28m of assets owned
by former Egyptian leader Hosni
Mubarak, his family and associates,
including luxury beachside properties
and luxury cars.
Shepshed end after 133 years
The tiny Shepshed Building Society threw
in the towel yesterday and announced
plans to be subsumed into the
neighbouring Nottingham.
Foyles trade down the Tube
The development of Tottenham Court
Road Tube station has been blamed for a
drop in trade at Foyles bookshop on
Londons Charing Cross Road.
The independent chain reported a 26 per
cent fall in pre-tax profits.
Ofgem chief executive to leave
Alistair Buchanan is to step down as chief
executive of Ofgem after 10 years, raising
questions about the future of the energy
regulator at a crucial time for the industry.
App users waste 173m on data
Consumers are wasting a staggering
173m annually in the UK on unsuitable
monthly tariffs and data-draining
smartphone apps, according to Carphone
Warehouse and its technical adviser Geek
Squad.
Pimco to boost Treasury holdings
The world's biggest bond fund plans to
increase its holdings of five-year Treasury
notes now that the Federal Reserve will
be including them in its asset-purchase
programme and has made fresh
commitments to keep interest rates low
for a long period.
Pfizer IPO for unit in early 2013
Pfizer is considering a January or
February launch of a roughly $4bn US
initial public offering for animal-health
unit Zoetis.
David Cameron is at a two-day EU summit, which includes talks on closer economic ties
2
NEWS
BY TIM WALLACE
To contact the newsdesk email news@cityam.com
FRIDAY 14 DECEMBER 2012
bailed out by the European Stability
Mechanism which German taxpay-
ers are a major contributor towards.
Chancellor George Osborne wel-
comed the agreement, and said
Britain has secured vital safeguards
on the details of the rules and on dis-
pute resolution, a majority of coun-
tries in the union and a majority of
those outside of it must agree.
And a non-discrimination article
has been included, promising not to
damage London or any other finan-
cial centre outside the union as a
hub for euro-based activities.
Still to be determined are a common
resolution scheme and a common
deposit insurance setup, which will be
negotiated in the coming two years.
ECB president Mario Draghi said
the agreement marks an important
step towards a stable economic and
monetary union, and towards further
European integration.
And the European Banking
Federation agreed, arguing it is of
paramount importance to ensure
financial stability and safeguard a
level playing field between banks
under the mechanism.
n The biggest 200 Eurozone banks will
be monitored by the ECB, rather than
local regulators
n They are banks with assets of at least
30bn (24.35bn), or with assets equal to
one-fifth or more of their countrys
economic output
n That means the banks whose collapse
could cause most trouble are monitored
centrally, but German fears over excessive
central supervision of its mid-sized banks
are also calmed
n All 27 EU nations approved the plan
n But it will only affect Eurozone
members, plus those others who opt in at
a later date
n Britain wanted to make sure it could
not lose its positional as a key centre for
euro-based finance
n So a non-discrimination clause has
been inserted which the government
hopes will protect the UK from any efforts
to on shore euro activities
n The technical details will be decided by
a dual majority system, where a
majority of those in the banking union
and a majority of those outside it need to
approve the rules
n But this is just the single supervisory
mechanism not the full banking union
just yet
n For that, the countries will need to
agree a communal deposit protection
scheme and a common resolution regime
for failed banks is also needed
n George Osborne said that will take
another two years of negotiation
n But when it is agree, the bailout funds
will be able to centrally recapitalise
troubled banks, rather than going
through governments as they do now
WHAT HAS BEEN AGREED?
The new jobs website for London professionals
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WHAT THE OTHER PAPERS SAY THIS MORNING
IN BRIEF
Bank bonus cap rule edges closer
nMEPs yesterday issued a draft
proposal to cap bankers bonuses.
They want to ban banks from paying
bonuses of more than an employees
basic salary and if a supermajority of
shareholders disagree, that cap can be
raised to two-times the salary. The
measure will be voted on in the New
Year, before passing to the European
Council. However Linklaters lawyers
suggested banks could get round the
cap by paying shares rather than cash.
Deutsche charges to hit profits
nDeutsche Bank said yesterday that
its radical restructuring plan would hit
fourth-quarter profits significantly
as the bank gets on with cleaning up
its balance sheet, but there was no
cause for investors to be alarmed.
This is not seen as a profit warning,
this is a guidance ... to make you
aware that we have effects coming out
of resegmentation, chief financial
officer Stefan Krause told analysts
during a conference call.
Nasdaq cancels some trades
nStock exchange operator Nasdaq
OMX is cancelling a series of
premarket trades that resulted in wild
price swings in a number of stocks
yesterday, including Citigroup and
Hewlett-Packard, the exchange said.
Nasdaq said in a statement it is
cancelling trades in nine stocks in
which trades occurred at prices that
marked a swing of 10 per cent or more
from Wednesday's closing prices.
AT&T was also affected.
A
man prepared to offend
thousands of hardened Geordie
football fans by renaming their
place of worship the Sport
Direct Arena (now plain old St Jamess
Park again) wont be too bothered
about entering into a renewed battle
with City institutions over executive
pay.
But more than a handful of other
executives will be interested in moni-
toring Mike Ashleys discussions with
investors over a scheme designed to
reward the Sports Direct founder with
39m of shares if his retail group can
meet some increased earnings targets.
A previous proposal was withdrawn
in September in the wake of the share-
holder spring, when a number of pro-
posed executive pay schemes
contributed to the demise of business
leaders such as Andrew Moss at Aviva,
David Brennan at AstraZeneca and Sly
Ashleys naked ambition could help him win Sports Direct vote
Bailey at Trinity Mirror, as investors
flexed their muscles over boardroom
pay. Especially where it seemed out of
proportion to performance.
Ashleys board never proposed a pay
increase for him because the founder
of the company, 71 per cent share-
holder, and its current deputy chair-
man, doesnt take a salary.
But when it became clear that a
scheme to award him an extra 10m
shares in the group was going to be
voted down by shareholders it was
sensibly withdrawn.
The new scheme, named super
stretch on the grounds that it
demands more stretching perform-
ance targets (rather than because its
describing a new brand of Sports
Direct football socks), is aimed purely
and simply at Ashley.
This, the board hopes, will address
earlier investor concerns that it might
have been more broadly based
amongst the management team,
which have another scheme of their
own anyway.
The targets have been raised so that
the company needs to meet improved
earnings and profits figures in each of
the following two years for Ashley to
benefit at all, so there are hopes that
the renewed scheme will attract the
75 per cent of investor support it
needs to go through.
Certainly shares in Sports Direct,
Management, who yesterday told my
colleague Kasmira Jefford he backed
Ashley in every possible way.
Andy Brough at Schroders is one of
the other larger shareholders.
The debate over the bonus will be
seen as a barometer for arguments to
come. Is the investor community pre-
pared to reward successful entrepre-
neurs in the quoted company arena
or is it still so hostile that many of the
most dynamic of them, like Sir Philip
Green, shy away and stay private?
Theres one bizarre reason why
retail analysts are hoping Ashley gets
his way. Yesterday he threatened to
attend next years analyst meeting
stark naked if he loses. Now theres an
incentive to vote it through.
which suffered from a disappointing
post IPO performance in 2007, have
been moving in the right direction.
Down 26.7p yesterday on profit-taking
after results, Sports Direct shares are
now trading at 382.6p, finally well
above their 300p flotation price, tak-
ing the group heading into the gener-
al direction of the FTSE 100.
And in a sector that has seen more
than its fair share of casualties and
walking wounded of late, including
HMV and Comet, Sports Direct contin-
ues to make good profits, no matter
how soul-destroying some of its stores
might feel.
With only 29 per cent of the groups
shares in non-Ashley hands, the board
will be concerned if any of the larger
shareholders decide to oppose the
revised scheme.
Definitely supportive though is
Crispin Odey, of Odey Asset
EDITORS
LETTER
DAVID HELLIER
david.hellier@cityam.com
follow me on Twitter: @hellierd
nAllister Heath is away
Euro leaders reach late
night bank union deal
THE GOVERNMENT yesterday gave
energy firms the green light to
resume exploring offshore shale gas
reserves in the UK despite splits
over its potential impact on con-
sumer energy prices.
Exploration using hydraulic frac-
turing or fracking which smashes
rocks deep underground to get gas
out of them had been banned in
the UK since last summer following
concerns the process was causing
earthquakes.
Yesterday the ban was
lifted by energy minister
Ed Davey, who
announced plans for rig-
orous safety checks on
the procedure.
Following the
announcement ,
splits emerged over
how much shale
gas would lower
consumer energy
bills.
A spokesman
for the Prime
Minister said
there was
potential for
prices to come
down, while
Conservative
Fracking ban
is lifted amid
price confusion
BY MICHAEL BOW energy minister John Hayes said
fracking could have a significant
impact on unit gas prices, citing the
example of US shale gas, where gas
prices have tumbled.
However, Davey sought to downplay
the impact shale gas will have on the
economy and the pace at which it
will start to affect consumer bills.
We are still in the very early stages
of shale gas exploration in the UK
and it is likely to develop slowly, he
said.
Fracking was banned when small
tremors were felt in Lancashire fol-
lowing drilling by energy company
Cuadrilla Resources.
Cuadrilla chief executive Francis
Egan yesterday welcomed lifting the
ban, and said: Todays news is a turn-
ing point for the country's ener-
gy future.
This week Prime Minister
David Cameron told a par-
liamentary committee:
You see America becom-
ing virtually self-sufficient
in gas, and there is the
opportunity of uncon-
ventional gas-shale gas-
here in the UK.
THE Duke of Edinburgh is well known for telling it straight , but the staff at the Bank of
England must have thought they were safe from any Royal gaffes yesterday, as the Duke made
a visit to the Old Lady of Threadneedle Street with Her Royal Highness. As Bank economist
Sujit Kapadia explained the unpredictable nature of financial crises unpredictable, much like
pandemic flu and earthquakes to the monarch, Prince Philip warned policymakers: Dont
do it again. The Queen also joined the debate, having asked on a visit in 2008 why no one
saw the crisis coming. Kapadia explained: "People thought markets were efficient, people
thought regulation wasn't necessary, to which the Queen replied: People had got a bit...lax,
had they? City watchdog the FSA responsible for overseeing markets was quick to
respond. We've widely acknowledged that the regulatory approach before the financial crisis
in 2008 was flawed and has since been completely changed. Parliament is now awaiting Royal
Assent for the Financial Services Bill, which will determine the powers for the new regulators
that will be created next year.
RIGHT ROYAL CRITICISM OF CITY REGULATION
Ed Davey said shale would
develop slowly
THE CAPITALIST: Page 12

FRIDAY 14 DECEMBER 2012
3
NEWS
cityam.com
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UBS set for $1bn fine next week
over Libor fiddling accusations
SWISS bank UBS is set to be fined
early next week for its role in
fiddling Libor submissions.
It is expected to be hit by a $1bn
(621m) fine, divided between
four regulators across the UK, US
and Switzerland.
That is more than double the
290m charge Barclays attracted
earlier this year, and represents a
major blow to a bank already
reeling from a rogue trader scandal
and in the process of laying off
BY TIM WALLACE 10,000 staff to cut costs and exit
underperforming businesses.
Libor, the key inter-bank lending
rate, is used to determine how
much interest is charged on
hundreds of trillions of dollars
worth of financial products across
the world, but dozens of banks are
believed to have entered false
information into the process.
Barclays fine came with a wave
of bad publicity, making other
banks keen to avoid being the next
in line. But UBS has lost that
struggle, and is likely to be hit on
Monday or Tuesday.
RBS is expected to follow soon
after, with chief executive Stephen
Hester last month explaining he
wants to settle the claims before
the banks results in February.
Three financiers were arrested
earlier this week over Libor fiddling
claims, thought to include former
UBS trader Thomas Hayes.
UBS, the Financial Services
Authority, the US Department of
Justice and the Commodities and
Futures Trading Commission all
declined to comment.
THE FUTURE of HMV was thrown
into doubt once again yesterday after
the music entertainment retailer
warned it is likely to breach its bank-
ing agreements at the end of
January, sending shares tumbling 40
per cent.
The company said weak market
conditions had created material
uncertainties for the business, after
a worse than expected start to the
Christmas trading period in which it
makes up to 60 per cent of its sales
for the whole year.
It said it was in constructive dis-
cussions with its eight lending
banks, including keeping them
informed of current trading, which
it and other retailers hope will be
boosted by a late surge in shopping
before Christmas Day.
HMVs statement came as the
group reported a 24.1m operating
loss for the 26 weeks to 27 October,
an improvement on the 33.2m loss
posted a year ago.
The demise of Game has helped
drive a six per cent increased in like-
for-like sales of games and technolo-
gy products. But like-for-like retail
sales in music and DVDs fell by 16
per cent despite growing its market
share in all categories.
Twelve days to
save Christmas
as HMV falters
BY KASMIRA JEFFORD
Chief executive Trevor Moore, who
joined from camera chain Jessops in
September, said HMV has had a dif-
ficult first half.
Christmas gets later every year,
people are also in search of the pro-
motional offer and being very care-
ful about where they spend their
money, he said.
There are still 12 critically impor-
tant trading days until Christmas
and being on the high street, if
things do come late, is absolutely to
our advantage because thats where
the footfall will be, he added.
Net debt at the half-year rose to
176.1m. The group has been selling
assets to pay down debt and earlier
this month sold a chunk of its live
music business for 7m.
It is due to make a 30m amortisa-
tion payment at the end of January.
BOTTOM
LINE
MARC SIDWELL
HMV has been selling assets to pay down its debt
HMV Group PLC
13Dec 7Dec 10Dec 11 Dec 12Dec
3.00
3.25
2.50
2.75
3.50
3.75
4.00
4.25 p
2.49
13Dec
INTERNATIONAL negotiations
over internet regulation collapsed
without a conclusion last night, as
representatives from the UK and
US refused to agree to terms
demanded by countries including
Russia, China and Iran.
Two weeks of talks over a
reformed UN communications
agreement came to a head as a
host of western nations said they
would not sign a proposed bill
that could lead to greater
Talks break down on internet
treaty after UK refuses to sign
BY JAMES TITCOMB
censorship. A bloc of countries
wants to add clauses to the treaty
that would create international
laws on spam messages and
security issues, but opponents
highlighted the risks associated
with the proposals, warning that
they could be used to clamp down
on free speech.
Were not able to sign a bad
agreement that does nobody any
favours and makes nobody happy,
British representatives said ahead
of todays vote, which is expected
to be rejected.
FRIDAY 14 DECEMBER 2012
5
NEWS
cityam.com
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H
OW long can HMV rely on its
suppliers to play Santa Claus?
At the start of 2012, the long-
suffering entertainment
retailer forged a closer alliance with
suppliers in return for a 2.5 per cent
stake. Their support is understood
to have run into tens of millions of
pounds already, and to include
supplying goods on consignment
sale or return this Christmas. But
it looks like cash-strapped HMV may
already be returning to the well.
Chief executive Trevor Moore
yesterday referred to HMVs
support from its suppliers and
then said that developing that
relationship further would be a key
focus for next year.
HMVs suppliers might wince to
hear that their generosity has only
just begun to be tested, but do they
have much choice? HMV may not
seem to have any cards left in its
hand, but as the last big bricks and
mortar supplier of CDs and DVDs,
the major content owners like
Universal Music need its high street
presence to counterbalance the
threat from low-margin digital files
or deep online discounts from
Amazon for the same physical
goods. If HMV buckles, it will be a
late Christmas gift for Jeff Bezos.
HMV is in terrible shape. Its
interim results yesterday were
below already low expectations.
Having to sell off some of its more
successful side projects like HMV
Live to raise cash can bring only
short term relief at best. But its
massively Christmas-focused
business this quarter of its
financial year brings in 46 per cent
of its revenues makes it vital to
the legacy media firms that want
to see their box sets under our
trees. If it is lucky, they will decide
to reach for the beard and red hat
one more time.
Suppliers stuck playing Santa
BARCLAYS is preparing to cut up to
2,000 investment banking jobs
under a major review of how it does
business, it emerged yesterday,
joining the flood of investment
banks cutting costs and closing
down sub-scale businesses.
The major British bank is expected
to cut back its Asian and European
operations as it focuses on its core
businesses. But some jobs are likely
to go in London, with investment
bank head Rich Ricci recently
indicating the banks tax planning
unit and agricultural trading arm
may be closed as part of its
reputational review.
The expected losses come in at
around 10 per cent of the investment
banks headcount.
Barclays declined to comment
ahead of the official
announcement by
chief executive
Antony Jenkins in
the New Year.
Many major
banks are shedding
staff, with Citi
currently cutting
11,000 jobs.
2,000 staff to
go in Barclays
major review
BY TIM WALLACE
A ROGUE former investment banker
who convinced his two girlfriends to
trade on insider information he fed
them was locked up for two years
and eight months yesterday.
Thomas Ammann, 39, leaked insid-
er tips to both of his girlfriends
Christina Weckwerth, 44, and Dr
Jessica Mang, 30, about his client,
Canon, and its planned takeover of
Dutch photocopier firm Oce.
The women bought shares in Oce,
and when the price subsequently
spiked Weckwerth made 1m
(805,000) and Mang, a chiropractor
from Surrey, made 29,000.
Ammann took half of the profits
from each.
Yesterday he was sentenced at
Southwark Crown Court having
pleaded guilty to two counts of insid-
er dealing and two counts of encour-
aging insider dealing earlier this
year.
His sentence was cut from four
years to two years and eight months
for an early guilty plea.
Sentencing, Judge Anthony
Leonard QC said: Your activities not
Two-timing ex
banker jailed
for illegal tips
BY MICHAEL BOW
only cast a cloud over the particular
business that employed you but
potentially affects the perception of
mergers and acquisitions business
within the City as a whole.
Last month a jury cleared both
Mang and Weckwerth of insider deal-
ing following a trial at Southwark
Crown Court, after accepting they did
not know they were trading on illegal
information.
Ammann, who worked in London
for Japanese investment bank Mizuho
International, had been working on
Canons takeover of Dutch photocopi-
er firm Oce in late 2008 and early
2009.
He was dating both of the women at
the same time when he got them to
buy the shares in Oce.
The Financial Services Authority,
which brought the case, yesterday
said it made no criticism of Mizuho
International.
Tracey McDermott, FSA director of
enforcement and financial crime,
said: At the time of his arrest
Ammann was an FSA approved per-
son with privileged access to inside
information. He sought to exploit
that position to make easy money.
FRIDAY 14 DECEMBER 2012
6
NEWS
cityam.com
A

D
a
i
m
l
e
r

B
r
a
n
d
Ocial government fuel consumption in MPG (litres per 100km) for the new M-Class Special Edition: Urban: 34.4 - 38.7 (8.2 - 7.3), Extra Urban: 42.2 - 50.4 (6.7 - 5.6), Combined: 39.2 - 44.8
(7.2 - 6.3). CO2 Emissions 194-158 g/km. Model featured is a ML 250 BlueTEC Special Edition at 44,870 on-the-road including optional Intelligent Light System at 1,630.00. (OTR price Inc. VAT, delivery, 12 months Road Fund Licence, number plates, rst registration fee and fuel).
*Finance oer based on an ML 250 BlueTEC Special Edition on a Mercedes-Benz Agility Agreement, on 10,000 miles per annum. Excess mileage charges may apply. Payable if you exercise the option to purchase the car. Includes optional purchase payment, purchase activation fee and Retailer deposit contribution.
Orders/credit approvals on selected M-Class models between 1 October and 31 December 2012, registered by 31 March 2013. Guarantees and indemnities may be required. Oers cannot be used in conjunction with any other oer. Some combinations of features/options may not be available. Please contact Retailer
for availability. Terms and conditions apply. Credit provided subject to status by Mercedes-Benz Financial Services UK Limited, MK15 8BA. Prices correct at time of going to print 10/12.
Representative Example: ML 250 BlueTEC Special Edition
The new M-Class.
Introducing the Special Edition.
From just 469
*
a month, you can enjoy standard features including
19" alloy wheels, Mirror Package, aluminium running boards, chrome
underguards and LED daytime running lights. In the M-Class Special
Edition, you can go anywhere, and go there in style.
Visit mercedes-benz.co.uk/offers
36 Monthly
payments of*

469.00
Customer
deposit
7,374.77
On-the-road
price
43,240.00
Retailer deposit
contribution
1,500.00
Duration of
agreement
36 months
Optional
purchase
payment

20,975.00
Amount of
credit
34,365.23
Total amount
payable

47,008.77
Acceptance
fee
180.00
Purchase
activation fee

95.00
Fixed
interest rate
4.16%
Representative
APR
4.6%
Chief executive
Antony Jenkins will
announce the shake
up in the New Year
Thomas Ammann has been sentenced to two years and eight months for insider dealing
Dr Jessica Mang (left) and Christina Weckwerth (right) were cleared of all charges
SHARES in Egyptian-focused miner
Centamin lost almost half their
value yesterday, as is said it would
close its flagship asset following a
dispute over diesel supplies.
The FTSE 250 firm said yesterday
that it had received a claim from
Egypts national oil company for
around $65m (40m) in back pay-
ments for diesel fuel supplied from
December 2009 until January 2012.
Centamin argued that the claim was
illegal.
As a result, the Egyptian General
Petroleum Corporation (EGPC) has
stopped all diesel supplies to the
Sukari gold mine until the amount is
paid.
Discussions are ongoing, but fuel
supplies have reached critical levels,
Centamin said.
Additionally, an unforeseen and
arbitrary request from customs offi-
cials has halted gold exports, pend-
ing an approval from Egypts finance
ministry.
Centamin sinks
as it suspends
its Sukari mine
BY CATHY ADAMS
Due to a resultant lack of diesel
and a shortfall in working capital in
Egypt for the local operations the
decision has been taken to suspend
operations at Sukari, Centamin said
yesterday, which sent its shares to a
seven-year low.
Shares in the gold miner are still
recovering from losing a third of
their value in October, when an
Egyptian court said that the compa-
nys right to mine gold in the country
was invalid.
Shares closed down 47.44 per cent at
27.7p yesterday.
Majority owner Sprint offers up
$2.1bn to buy rest of Clearwire
SPRINT Nextel, the majority owner
of Clearwire, has offered $2.1bn
(1.3bn) to buy the rest of the
wireless service provider, but it will
likely have to offer more money in
order to secure a deal.
Clearwire, which said it is
reviewing the offer, saw its shares
jump more than 11 per cent to $3.06
after the bid, topping Sprints $2.90
offer price and suggesting that
shareholders were hoping for a
higher sum. Sprint said it would
BY CITY A.M. REPORTER
also provide interim financing of
$800m to cash-strapped Clearwire if
shareholders agree to the $2.90 offer.
But analysts said that Clearwire
shareholders would be very unlikely
to accept Sprints offer, which would
allow the third-biggest US mobile
service provider to take full control
of Clearwires spectrum holdings to
bolster its own wireless data services.
Sprint declined to comment on
whether it would revise its offer. Its
proposed price is five per cent higher
than Clearwires closing stock price
on Wednesday, but more than
double its $1.30 price on 10 October.
Clearwire shares have risen
sharply since then on increasing
investor speculation that loss-
making Sprint would use new
financing from Japans Softbank to
buy Clearwire. Sprint agreed in
October to sell a 70 per cent stake to
Softbank for $20bn.
Clearwire said in a regulatory
filing that it is in talks with Sprint
regarding a potential strategic
transaction and that a committee
of its board of directors has been
reviewing the potential deal.
Centamin PLC
Jun Feb Mar Apr May Nov Jul Aug Sep Oct
40
20
60
80
100
120 p
27.70
13Dec
BG GROUP yesterday appointed
Chris Finlayson as its new chief
executive, starting in January.
Industry veteran Finlayson is
currently managing director of BG
Advance and has over 35 years of
experience in the oil and gas
industry. He joined BG Group
from Shell, where he was a
member of the exploration and
production leadership team.
Sir Frank Chapman, current
head of BG Group, will step down
at the end of the year after a 12-
year tenure, although he will
continue to work as an adviser
BG Group appoints oil veteran
Chris Finlayson as its new chief
BY CATHY ADAMS
until his retirement next June.
Analysts welcomed Finlaysons
appointment, with Gordon Gray at
Canaccord Genuity saying that
investors should view the move as
a positive one.
Analysts at N+1 Singer also
heralded Finlayson, saying it
removed a key uncertainty for
BG.
They highlighted that while he
was not the most obvious
candidate, given others in the
frame who have been at BG for a
long time, but said they expected
him to be a strong leader at a
difficult time for BG as it struggles
to deliver on production growth.
FRIDAY 14 DECEMBER 2012
8
NEWS
cityam.com
Chris Finlayson joined BG Group in August 2010 after working for Shell for over 33 years
KPMGs global revenues hit a
record $23bn (14.3bn) for the
year to the end of September, the
professional services firm said
yesterday.
Turnover rose 4.4 per cent in
local terms across the business,
or 1.4 per cent including
currency movements.
Chairman Michael Andrew said
performance had grown weaker
during the year. 2012 was a year
of two distinct halves; with
growth strongest at 6.4 per cent
in the first six months of the year
and relatively weaker growth of
KPMGs global revenues jump
1.4 per cent to a record $23bn
BY MARION DAKERS
2.1 per cent in the six months to
September, he said.
The firms global advisory
revenues jumped 8.3 per cent to
$7.86bn, while the tax arm
enjoyed a 6.3 per cent rise to
$4.86bn.
KPMG is due to give more
details on its European earnings
next week, but said yesterday
that revenues rose four per cent
across the region in spite of the
economic turbulence.
The company increased its total
headcount by over five per cent
to more than 152,000 over the
year, while 450 new partners
were appointed.
MORRISONS, the UKs fourth biggest
supermarket, has chosen Trevor
Strain to replace Richard Pennycook
as its new group finance director, it
said yesterday.
Strain will be officially appointed
to the main board in June 2013, but
will take on Pennycooks
responsibilities next spring after a
handover. Strain joined Morrisons in
2009 as commercial and operations
finance director, and was made
finance director of the corporate
division in 2011. He previously
worked at Tesco for seven years as UK
planning and reporting finance
director.
Morrisons chief executive Dalton
Philips said: Ive worked closely
with Trevor for three
years and Im
confident that he has
the qualities and
experience to make
an excellent
group finance
director.
Pennycook
announced his
departure
unexpectedly
in June.
Trevor to take
the Strain as
Morrisons FD
BY ALEX WYNICK
Strain has worked for
the firm since 2009
10
NEWS
THE BOTCHED West Coast rail franchise contest
could cost the public purse millions of pounds
more to put right, the Department for Transports
top civil servant admitted yesterday.
MPs on the public accounts committee pointed
out yesterday that the original competition cost
1.9m, but the DfT has so far spent a mind-
blowing 2.7m on preparing to defend its
decision in court and 4.3m on subsequent advice,
including the Laidlaw report into the DfTs
shortcomings.
Its a prime example of how one can be penny
wise and pound foolish, conceded permanent
secretary Philip Rutnam.
The DfT scrapped a decision to award
FirstGroup the right to run the West Coast Main
Line in October, blaming serious flaws in the way
the bids were judged.
I cant say that there wont be [further costs],
Rutnam said. The DfT has so far pledged to
reimburse 40m spent by the bidders.
West Coast failures
could cost even more
BY MARION DAKERS
TRANSPORT company National Express said
yesterday that it is on track to deliver a good
revenue and profit performance for 2012.
Its coach division, which covers 1,000
destinations in the UK, expects a four per cent rise
in passenger volume in 2012, while revenues from
non-concession passengers rose two per cent. The
rise comes after a good performance during the
Olympics and the addition of new routes, which
the firm says has offset last years withdrawal of
government subsidies.
National Express said it is on course to deliver
its 2012 targets.
By focusing on good value, high quality
transport services, we have delivered growth
across our core bus and coach operations,
supplemented by a strong performance in rail,
said. Recent bid wins from an expanding pipeline
of opportunities, combined with strong cash
generation, underpin our platform for growth in
the medium term.
National Express on
track with revenues
BY JAKOB VILLUMSEN
DO YOU THINK ERIC SCHMIDT IS RIGHT TO
BE PROUD OF GOOGLES UK TAX PLANS?
Interviews by Alex Wynick and Jakob Villumsen
If they feel its within
the borders of good
ethics, I guess they can.
But I think they should follow the
lead of Starbucks in order to pre-
serve integrity in the eyes of the
consumer.
These views are those of the individuals above and
not necessarily those of their company

I dont blame Google for

avoiding tax, thats the
way our laws work. The rm
employs thousands of people and
if it had to pay more taxes it may
have to make redundancies.
Youve got to nd a balance.
SARAH ROBERTS INDEMNITY RISKSOLUTIONS

I think proud is a
strange word to use.
They should be condent, not
proud. Proud makes Google
sound like its being rather smug
about the situation.
PAUL OVER TRIDENT INTERNATIONAL

CITYVIEWS
IMRAN KAHN BANK OF ENGLAND
FRIDAY 14 DECEMBER 2012
11
NEWS
cityam.com
CITY grandee Rupert Pennant-Rea
yesterday announced he was stand-
ing down as chairman of FTSE 250
money manager Henderson Group
at the groups next annual meeting.
Pennant-Rea, 64, will move to take
up the chairmanship of financial
services firm Royal London Group
following his departure from
Henderson in March next year. His
successor has yet to be
announced.
The company has come a
long way since it demerged
from AMP and relisted,
and has made two success-
ful acquisitions in recent
years. I am leaving the
company and the board in
good shape, he said.
Pennant-Rea, a former
editor of The
Economist news-
paper, is one
of the Citys
best known
Henderson loses
Pennant-Rae to
Royal London
BY MICHAEL BOW
names, having risen to become
deputy governor of the Bank of
England from 1993 to 1995. He had
been at Henderson since 2004.
He is currently chairman of The
Economist Group, and also holds
directorships at Go-Ahead Group,
Gold Fields Limited and Hochschild
Mining.
Pennant-Rea oversaw Hendersons
takeover of two of fund manage-
ments biggest names, New Star Asset
Management in 2009 and
Gartmore in 2010.
Henderson yesterday also
revealed plans to switch its
tax residency back to the
UK from the Republic of
Ireland.
The firm is also ditching
two executive directors,
David Jacob and James
Darkins, as part of a down-
sizing of its board.
Rupert Pennant-Rea is
leaving Henderson
Shock departure of WH Ireland
boss causes shares to plummet
CITY broker WH Ireland saw its
share price collapse yesterday
after the sudden departure of its
chief executive Paul Compton.
The group, which helped found
the Manchester Stock Exchange
in 1836, crashed 27.5 per cent
after announcing Compton had
left the business with immediate
effect.
It did not give further details. A
spokeswoman for the firm said it
could not reveal why Compton
had left.
The companys head of private
wealth management Richard
Killingbeck, who joined the
business last month, will replace
him as acting chief executive.
Chairman Rupert Lowe, the
former chairman of Southampton
FC, will also lend a hand.
WH Ireland floated on the
junior stock market in 2000 and
had been performing modestly
recently.
It posted a slight fall in pre-tax
profits in its last set of interim
results, despite the ravages of
lower market volumes and
investor sentiment.
Compton directly owns around
1.2m of the 23.7m shares in issue,
according to the firms website.
This equates to around five per
cent of the business.
The firms investor relations
department did not comment on
whether Compton still owned
these shares now he had left.
Killingbeck previously held
senior management positions at
Close Brothers Asset Management
and Credit Suisse.
MARIA MILLER INVESTIGATED OVER EXPENSES
CULTURE secretary
Maria Miller will be
investigated over
her expenses, the
Parliamentary
Commissioner for
Standards
confirmed
yesterday. Miller,
who has been
accused of claiming
allowances on the
house her parents
live in, received the
full backing of
David Cameron.
The Prime Minister
said she had
excellent
answers to
questions about
her expenses.
BANKS will be banned from
competing too aggressively to
raise market share, as regulators
fear it will encourage other firms
to follow suit in a race to the
bottom, undermining financial
stability, new guidance showed
yesterday.
The Prudential Regulation
Authority will also seek to stop
large insurers with huge
investment portfolios from
affecting asset prices with major
shifts in their investments.
But both will be enforced by
the PRAs judgement of levels of
risk to financial stability, with no
New regulator to ban banks from competing
too aggressively for more lending business
BY TIM WALLACE
hard and fast rules set down.
A bank could compete for
business too aggressively and thus
contribute to risky
behaviour across
the system as a
whole, said the
note, published
in the Bank of
Englands
quarterly
bulletin.
This means
banks efforts to
seize market
share by
lowering
interest
rates and
lending standards will be
carefully monitored by
regulators, keen to stop banks
taking too many risks but also
potentially denying customers the
good deal banks want to offer to
out-compete rivals.
The PRA will examine both
the threats to the viability of a
firms business model and the
ways in which a firm could
create adverse effects on other
participants in the system by the
way it carries on its business,
the release explained.
Andrew Bailey will lead the
new banking regulator
BY MICHAEL BOW
TO The Savoy on Wednesday
evening, for one of the final awards
dos in The Capitalists diary before
the Square Mile goes into hiberna-
tion for the festive period.
The occasion this week was the
Mergermarket European M&A
Awards 2012, hosted by
Daily Politics presenter
and Spectator chair-
man Andrew Neil.
The annual cer-
emony awards
the biggest
deal makers
from Europe,
the Middle
East and
Africa.
This year the
big winners
were KKR,
which won
Dealmakers at
The Savoy for
M&A knees up
private equity deal of the year for its
sale of Alliance Boots, and Direct
Line, which took IPO of the year.
Goldman Sachs was named finan-
cial adviser of the year, Linklaters as
private equity legal adviser of the
year, and the merger of
Glencore and Xstrata
was named M&A deal of
the year.
The only remain-
ing deal to be
done at the end
of the evening
was negotiat-
ing entry to a
suitably near-
by nightclub. It
is Christmas, after
all.
12
cityam.com
cityam.com/the-capitalist
THECAPITALIST
All change at corporate research
firm Hardman & Co, which has
been sold by Roger Hardman to a
consortium of City worthies. The
business has also taken on a new chief
executive in the form of Keith Hiscock.
Hiscock, who used to be director of
Evolution Securities, tells The Capitalist
that he hadnt anticipated his new role
involving a need for fitness, having been
told by his new bosses in no uncertain
terms that he must learn to ride a
pushbike: I havent been on a bike since
I was in short trousers, but John Holmes,
our new chairman, is cycling from Lands
End to John OGroats. Hiscock
lamented: They even say they are going
to confiscate my Oyster card...
Loyal lunchtime visitors to
Threadneedle Street restaurant
The Mercer, may have noticed
something amiss with the shops
signage this week. The wooden and iron
M symbol, which notoriously dangles
over the pavement and which many
City workers will no doubt be familiar
with from their daily commute has
mysteriously disappeared. Manager
Jason Bedford revealed to The Capitalist
that is not the start of a modern
makeover, but the result of an
unfortunate accident. It turns out that
an errant Number 242 bus smashed the
beloved sign to pieces. Luckily regular
patrons from the Bank of England ought
to still be able to navigate their way
there, given that they both reside on the
same street.
FRIDAY 14 DECEMBER 2012
EDITED BY CALLY SQUIRES
Got A Story? Email
thecapitalist@cityam.com
L to R: Andrew Neil &
KKRs Dominic Murphy
WHEN they werent making
insightful observations on the state
of the UKs financial regulation
yesterday, The Queen and His Royal
Highness The Duke of Edinburgh
seemed to enjoy the rest of their
visit to the vaults of the Bank of
England yesterday.
As tradition dictates, the Queen
and Prince Philip both signed an
unissued 1m banknote to record
their visit, a quirky pastime that
dates back to the 19th century. The
pricey note was then placed in the
Queen and Prince Philip inspect
Bank of Englands gold stash
banks distinguished visitors book.
The Queen and The Duke were
greeted by governor Sir Mervyn
King and Lord Mayor of the City of
London Roger Gifford, before being
whisked off for a tour of the Bank.
The last time the couple browsed
the Banks vaults of gold bars was
in 1998, although the Queens first
visit was back in 1937 when she
accompanied Queen Mary.
No word on Prince Philips
legendary line of questioning when
he met staff members.
Her Majesty the Queen takes a tour of Threadneedle Streets finest bars
TM and 2012 Apple Inc. All rights reserved. Subject to availability. Limited stock on a first come first served basis. Connection subject to status, credit check, Direct Debit and 24 month minimum term contract. Allowances are monthly. Calls/texts made in UK to standard UK landlines/ mobiles, special numbers chargeable. UK data.
Excessive usage policy applies. 99.99 for iPhone5 16GB. Terms apply, see o2.co.uk
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Visit o2.co.uk/iphone5
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THE TWO founders of a London
digital advertising agency were both
set for multi-million pound rewards
as they sold their company to Saatchi
& Saatchi in a deal believed to be
worth around 10m.
Outside Line, majority owned by
Ant Cauchi and Lloyd Salmons,
employs around 70 people from its
Farringdon office. Saatchi &
Saatchis owner Publicis announced
the deal yesterday, saying it would
accelerate the firms shift towards
being a digital-focused company.
Outside Line is a perfect cultural
fit, Saatchi & Saatchi Londons chief
executive Magnus Djaba said. The
agency, which will be integrated into
Saatchi & Saatchi, runs campaigns
for clients including Andy Murray,
British Gas and Virgin
Atlantic.
We know this is
an exciting new
step forward, both
for our agencies and
for our clients,
Cauchi and Salmons
said.
Ad founders
cash in with
Saatchi sale
BY JAMES TITCOMB
The agreement may mean
cheaper Kindle ebooks
Bessie Lee has held various
roles at WPP for 20 years
Magnus Djaba,
Saatchi & Saatchi
London chief
FRIDAY 14 DECEMBER 2012
15
NEWS
cityam.com
APPLE and a group of major publish-
ers have backed down over the pricing
of ebooks, in a move that could see
Amazon set lower prices.
The four publishers Simon &
Schuster, HarperCollins, Hachette
Livre and Macmillan as well as the
technology giant reached an agree-
ment with European authorities fol-
lowing a competition investigation.
The companies agreed
to change the way they
distributed ebooks,
moving from a model
in which the publishers
set the prices to a sys-
tem that allows retail-
ers to discount.
This is a victory for
Amazon, which is look-
ing to cut ebook prices
in order to encourage
uptake of its Kindle
ereader. In 2010, major
publishers teamed up
to force the web retailer
Apple agrees to
back down on
ebook pricing...
BY JAMES TITCOMB
to sell Kindle books at prices they
determined, fearing ebooks would
affect more profitable physical sales.
The European Commission had
accused the companies of colluding
over the pricing strategy. Late Apple
boss Steve Jobs is believed to have nego-
tiated a deal with publishers that kept
the cost of ebooks artificially high.
While each separate publisher and
each retailer of ebooks are free to
choose the type of business relation-
ship they prefer, any form
of collusion to restrict or
eliminate competition is
simply unacceptable,
said Joaquin Almunia,
the EUs competition
commissioner.
The commitments pro-
posed by Apple and the
four publishers will
restore normal competi-
tive conditions in this new
and fast-moving market.
WPP outlines China expansion
with new chief executive role
SIR MARTIN Sorrells advertising com-
pany, WPP, yesterday signalled further
expansion into the East, in appoint-
ing WPP veteran Bessie Lee to the new
role of chief executive for its Chinese
operations.
The move follows an acquisition
spree in the country, which is now
WPPs third-largest market after the
UK and US. Sir Martin expects China
to overtake the UK in the coming
years, although he has highlighted
slowing growth in the region as a
cause for concern.
Lee is currently chief executive of
GroupM China, a WPP subsidiary.
BY JAMES TITCOMB The company said her new
role will require her to
help identify new
business opportunities,
potential acquisitions and
investments, as well as
support the groups
ongoing efforts to attract
and retain the best talent
in China.
Lee has worked at
various WPP subsidiaries
for the past 20 years.
Bessie has done a
fantastic job in building
GroupM China into not
only the leading media
agency group in China,
but one of GroupMs strongest
operations globally, Sir Martin
said.
We look forward to her
lending her considerable
expertise and experience across
WPP to accelerate the growth of
all areas of our business in
China.
WPP has made a flurry of
Chinese acquisitions in recent
years, including Octobers
purchase of communications
agency ArtM. It employs
14,000 people in the country.
New Betfair boss playing it safe
with focus on regulated nations
THE NEW chief executive of Betfair
has outlined plans to focus on
regulated gambling markets,
indicating a shift from the
strategy outlined by former boss
David Yu.
Breon Corcoran, who joined the
online exchange-betting operator
in the summer from Paddy Power,
said the regulatory environment
in certain countries was
challenging and thus the
company would focus investment
within regulated markets with
sustainable revenues.
The shift, which essentially
BY JAMES TITCOMB
means dropping support for
markets such as Russia and
Canada, follows Betfairs recent
exits from Germany and Greece.
The move will cut Betfair
revenues by roughly a quarter.
The new plan was announced as
the company posted a 64m loss in
the six months to November, owing
mainly to acquisition costs and
Corcorans 81m writedowns.
With these effects stripped out,
higher costs moved pre-tax profits
22 per cent lower to 21m, even as
revenues were five per cent up at
200.6m.
Corcoran also announced a
20m cost-saving plan, which he
said would make Betfair a leaner
and more dynamic business.
We have identified a number of
areas requiring change and fixing
these will take time, he said.
GOOGLE yesterday released a
version of its mapping software for
Apple devices, following
widespread criticism of the iPhone
makers own service.
Apple replaced Googles software
with its own as the iPhones
default maps application in
September. However, the service
was riddled with errors, leading
chief executive Tim Cook to issue
an uncharacteristic apology.
The service had put landmarks
in the wrong place and sent
tourists off course. Police in the
BY JAMES TITCOMB
Australian city of Mildura had
warned travellers not to use the
app this week after reports of it
sending people to a national park
45 miles away.
The fiasco led Cook to fire Apple
executive Scott Forstall, who was in
charge of software.
In a blogpost announcing the
software, Googles director of
mobile maps, Daniel Graf.
highlighted Googles focus on
accuracy.
We make tens of thousands of
daily updates to keep Google Maps
accurate and comprehensive, Graf
wrote.
Googles mapping software was used on the iPhone before Apple replaced it this year
THE UKS biggest mobile network
operator, EE, will double the
number of cities that its 4G service
covers next spring.
The move will extend the
companys headstart on Vodafone
and O2, which will not be able to
launch their own high-speed
mobile internet services until
early summer.
EE said yesterday it would bring
4G to an extra 17 areas, including
St Albans, Reading and Watford,
by March. This will extend the
services reach to an extra 4m
people across 35 cities.
Rival networks will not be able
to launch 4G services until early
EE extends headstart by rolling
out 4G service in 17 more cities
BY JAMES TITCOMB
summer, following an Ofcom-run
auction of 4G-approved mobile
spectrum. Applications for the
auction were submitted this week,
with the UKs four major
operators O2, Vodafone, EE and
Three as well as BT, entering.
EE, which runs Orange and T-
Mobile as well its own self-branded
service, won approval to use
spectrum it already owned for 4G
earlier this year. The clearance
angered rival operators and gave
EE a headstart of around eight
months. The service launched in
October, backed by an extensive
advertising campaign.
Were delighted with the
progress of the 4G rollout, EEs
chief executive Olaf Swantee said.
Betfair is reallocating resources; trying to create a business of better
quality with better long-term growth potential. Management now seems keener
on adapting the product to the customer and less determined that the
customer adapt to the product. Target cut to 1,000p but Buy guidance.
ANALYST VIEWS

Current trading is slightly better than we anticipated with revenue up

two per cent year on year in Q3 to date and the groups guidance indicates a
small downgrade to full year expectations reecting the exit from certain
markets. We reiterate our Buy recommendation and 912p target.

The narrative that accompanied the gures contained everything that

we hoped it might. The task facing the new management team should not be
underestimated, but at least Breon Corcoran now appears to be pointing
the business in the right direction. We rate Betfair as a Buy.

WHAT DO YOU MAKE OF

BETFAIRS SHIFT UNDER
NEW MANAGEMENT? Interviews by James Titcomb
IVOR JONES NUMIS SECURITIES

SIMON FRENCH PANMURE GORDON

NICK BATRAMPEEL HUNT

Betfair Group PLC
13Dec 7Dec 10Dec 11 Dec 12Dec
745
755
750
740
760
765
770
775 p
761.00
13Dec
...while Google muscles in on
its turf with iPhone maps app
FRIDAY 14 DECEMBER 2012
16
NEWS
cityam.com
IN BRIEF
London gives birth to new firms
London is the new mother of
business, according to data released
yesterday, with a business birth rate of
14.5 per cent, the highest in the UK.
The Office for National Statistics said
yesterday that nearly 13,000 new
companies opened in London between
2010 and 2011. Overall, the UK saw a
business births increase by 26,000, or
11.2 per cent, and business deaths fall
by 20,000, or 7.9 per cent.
Small firms will drive recovery
Three hundred thousand new small
firms are needed to restore the UK
economy to its former heights, said a
study out yesterday. Smaller firms are
currently contributing 52 per cent of the
private sector output in the economy,
the Centre for Economics and Business
Research said yesterday. And while the
number of large companies fell by 11 per
cent over the past 10 years, there are
now 35 per cent more small firms.
Greek jobs crisis worsens further
Greek unemployment continued to
rise in the third quarter, the Hellenic
Statistical Authority said yesterday.
The number unemployed jumped 5.3
per cent between the second and third
quarters of 2012, it said, putting the
total number of jobless up 40.2 per
cent in just a year. Women under the
age of 24 are finding it hardest to find
a job, and suffer an unemployment
rate of 65.4 per cent .
HOUSE PRICES managed to creep up
in November, after the month saw
uncharacteristically high activity.
Prices were up 0.2 per cent on the
month, according to data from LSL
Property Services and Acadametrics,
on the back of a five per cent rise in
the number of transactions compared
to last November. This put prices up
3.3 per cent on the year a rise of
more than 7,000 the index showed.
The news comes as a separate
report, released today by the Royal
Institution of Chartered Surveyors
(RICS) estimates that house prices will
rise by two per cent in 2013.
The bullish outlook contrasts with
earlier data from Halifax and
Nationwide, which pointed to a
decline in prices over the current year,
but is in line with more cheery
November data from Rightmove.
And Esurv statistics on the
November mortgage market reinforce
the idea that the month was relative-
House prices up
on high volume
of transactions
BY BEN SOUTHWOOD
ly positive for the housing market.
The number of home purchase loans
rose to an 11-month high of 53,259 in
November, the surveyor said. As
recently as June, the number of loans
agreed had dipped to 44,192. But Esurv
did not put this credit boost down to
the governments Funding for Lending
Scheme (FLS). FLS has lowered mort-
gage rates, but criteria failed to loosen
in November, with banks content to
focus on lower-risk low loan-to-value
borrowers, the report said.
It pointed out that the average loan
to value on properties worth less than
125,000 actually fell, reaching 66 per
cent, the lowest in 21 months, suggest-
ing first time buyers were being kept
out of the market, even after FLS.
Newnes at LSL agreed that mortgage
market improvements were top
heavy. He said: Lenders remain risk
averse and conscious of capital
requirements, and those that have
started to tap FLS have been directing
additional funding towards buyers
with larger deposits and buy-to-let.
UK individual consumption falls
to fourth in the European Union
UK INDIVIDUAL consumption slid
to fourth in the EU in 2011, falling
behind Austria and Germany.
British individuals were still
able to exercise 18 per cent more
purchasing power in their
consumption than the EU average,
Eurostat revealed yesterday, but
this placed them fourth.
In 2010 their consumption was
a fifth above average, putting
them in second, behind only
Luxembourg. But Germany and
Austria both saw their individual
consumption increase, moving
the countries into second and
third.
Measured by GDP per resident,
corrected for purchasing power,
the UKs living standards placed
only 10th in 2011. The top nine
were populated entirely by
northern European countries
the benelux nations, the EUs
three Scandinavian members, the
two German-speaking countries,
and Ireland.
Luxembourg placed first on
both measures, with a GDP per
capita some 171 per cent close to
triple the EU average, and
consumption some 40 per cent
above the mean of the rest of the
EUs members.
BY BEN SOUTHWOOD
Olympic and Paralympic Games
fail to boost UK visitor numbers
VISITS to the UK crept lower in
2012, despite London hosting the
Olympic and Paralympic Games.
A total of 26.2m visits have been
made to the UK in the first ten
months of 2012, according to
figures released by the Office for
National Statistics yesterday. This
is one per cent below the level in
2011, despite the capital hosting
the worlds biggest sporting
event.
October, which saw a four per
cent decline in visits compared to
the same month last year,
bringing the figure to 2.7m, was
BY BEN SOUTHWOOD
the fourth month out of the last
five with visitor figures lower
than last year.
However, earnings from
tourism, at 15.8bn in the first ten
months of the year, were up three
per cent on the year before,
despite an 11 per cent fall in
October earnings, bringing the
months figure to 1.6bn. And this
gain did appear to come from an
Olympic boost, rising 12 per cent
and 19 per cent in the two months
the Games were held.
Barclays Mike Saul took a
downbeat view on the figures,
suggesting that Eurozone troubles
were acting as a brake on tourism
from the currency bloc. The latest
tourist numbers offer little
Christmas cheer as year on year
figures continue to decrease, Saul
said. With weak growth across
the Eurozone, household spending
remains a major concern for many
of our traditional visitors.
Whatever the picture for visitors
to the country, UK tourists
enthusiasm for foreign visits
appeared undimmed, with the
total number, at 50.3m in the year
up to and including October,
completely flat on the figure for
2011. And spending abroad
climbed four per cent to reach
29.3bn over the year to October.
NEW CLAIMS for unemployment
insurance fell back again in the
first full week of December.
Seasonally adjusted initial
claims dropped 29,000 to reach
343,000 in the week ending 8
December, the Department of
Labor said yesterday. This
reflected a bigger than seasonally
usual fall in the underlying
claims, bringing them from
500,931 last week to 428,814 just
under the 435,863 they reached in
the same week in 2011.
And total insured
unemployment came down with
new claims, hitting 3,198,000 on
the headline seasonally adjusted
number during the week ending 1
US new unemployment claims
enjoy second December drop
BY BEN SOUTHWOOD
December, down 23,000 on the
weak before and 411,000 on the
year before.
Retail sales data was also
cheery. November sales totalled
$412.4bn (255.6bn), the US
Census Bureau said, a rise of 0.3
per cent compared to October
and a full 3.7 per cent above the
sales seen during November 2011.
Separate data from the Census
Bureau had a less positive
message, though for the previous
month. Distributive trade sales
and manufacturing shipments
summed to a total value of $1.26
trillion in October, the data
showed. Though this was a 0.4 per
cent fall compared to September,
it represented a 3.1 per cent jump
compared to a year before.
ORDERS on manufacturers books
have begun to show improved
signs of life this month, according
to a survey out yesterday.
A net balance of 12 percentage
points more firms told the
Confederation of British Industry
(CBI) their order books were
below normal in December, than
those that said their books were
more full than normal.
But this minus 12 figure was a
significant improvement on
Novembers minus 21, and it is
comfortably above the long run
average of minus 17, putting a
more positive gloss on the data.
And the index for output over
Drop in factory orders now less
severe than long run average
BY BEN SOUTHWOOD the coming three months also
improved from minus nine in
November to zero in December,
suggesting firms expect output to
stay about where it is now.
IHS Global Insights Howard
Archer said the improvement in
the survey data provided some
reason for hope amongst
manufacturers. A significantly
improved December CBI
industrial trends survey offers
some grounds for optimism for
manufacturers going into 2013
after they suffered a pretty torrid
end to a largely difficult 2012,
Archer said.
But he predicted that
international conditions would
continue to prove difficult.
HOUSING MARKET STILL CHOPPY BUT NOVEMBER SEES PRICES UP
HOUSE PRICES
IN NOVEMBER 2012
COMPARED TO OCT 2012
0.2% HOUSE PRICE
THE AVERAGE
226,918
HOUSE PRICES
IN NOVEMBER 2012
COMPARED TO NOV 2011
3.3%
INDICES TREND BROADLY UPWARD AS STUTTERING RECOVERY CONTINUES
Annual increase in house prices, %
Source: LSL Property Services / Acadametrics
15
10
5
0
-5
-10
-15
-20
Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12
LSL Index
Range of other indices
UK LIVING STANDARDS RANK ONLY 10TH IN EU
GDP* Consumption*
Luxembourg 271 140 (1st)
Netherlands 131 113
Ireland 129 101
Austria 129 119 (3rd)
Sweden 127 116 (5th)
Denmark 125 113
Germany 121 120 (2nd)
Belgium 119 111
Finland 114 112
UK 109 118 (4th)
1
2
3
4
5
6
7
8
9
10
S
O
U
R
C
E
:

E
U
R
O
S
T
A
T
*(PER CAPITA) AT PURCHASING POWER STANDARDS, 2011, 100 = EU AVERAGE
IN BRIEF
Rolls-Royce secures Brazil deal
British engineering giant Rolls-
Royce yesterday said it had secured
a 100m contract to supply
integrated power and propulsion
systems for seven offshore drill
ships for Brazilian oil company
Petrobras. The ships will be built at
the Atlantico Sul shipyard, and will
support the extraction of oil from
between 2,000 and 3,000 metres
below the Atlantic Ocean.
Suffolk win for Balfour Beatty
Infrastructure group Balfour Beatty
said yesterday it had been selected as
preferred bidder on a 200m contract
to maintain highways in Suffolk. The
contract, initially for five years, has
the possibility of an extension to 10
years. If approved, Balfour Beatty will
be responsible for designing and
implementing highway maintenence
and improvement works in the East
Anglian county.
Adobe Systems earnings rocket
Software maker Adobe Systems,
the firm behind Photoshop and
Acrobat, yesterday posted a higher
fourth-quarter profit on lower
expenses. Net income rose to $222.3m
(138m) from $173.7m a year earlier.
Revenue was flat at $1.15bn. Deferred
revenue grew by $59.3m to a record
$619.6m, the firm said in its fourth
quarter figures yesterday, while
subscriptions to its marketing cloud
service are on the rise.
GLOBAL airlines yesterday revised
upwards widely-watched industry
profit forecasts for 2012 and 2013, but
said that carriers remain vulnerable
to risks including the Eurozone crisis
and the threat of a US fiscal cliff.
The International Air Transport
Association (Iata), which represents
240 carriers, said that airlines were
set to make a collective profit of
$6.7bn (4.15bn) in 2012, up from a
previous forecast of $4.1bn.
For 2013, it predicted an industry
profit of $8.4bn, up from its previous
estimate of $7.5bn.
Following projections of a loss for
in the October forecast, Iata now
expects European airlines to break
even, a decline of $400m from the
2011 figure.
African carriers are
also expected
to break even,
with airlines
across North
America, the
Iata says airline
profits will be
higher in 2013
BY HARRY BANKS
Middle East and Asia-Pacific regions
all expected to increase profits.
Expectations for Latin America
remain unchanged.
The airline association warned that
macroeconomic risk particularly
the Eurozone crisis and the US fiscal
cliff remained a key threat to global
performance.
We need to make sure that cash
strapped governments understand
aviation is a catalyst for economic
growth, and ensure that light touch
regulation does not become a licence
for infrastructure providers to let
costs get out of control, said Iata chief
executive and director general Tony
Tyler.
Tyler said the organisation would
also maintain pressure on govern-
ments to
invest in key
infrastructure
improvements.
Airbus confirms $9.4bn AirAsia
order in boost to Welsh factory
EUROPEAN planemaker Airbus
said yesterday that Malaysian
group AirAsia was the customer
behind a previously announced
order for 100 A320 aircraft worth
around $9.4bn (5.8bn) at list
prices.
The deal, which provides AirAsia
with an additional 64 A320neo and
36 A320ceo aircraft, was formally
unveiled at Airbuss wing assembly
plant in Broughton, Wales, in the
presence of Prime Minister David
Cameron.
The contract will safeguard 1,500
Airbus jobs in Britain and 7,500 in
BY CITY A.M. REPORTER
the group's wider supply chain,
Camerons office said.
This is excellent news and a
tremendous boost for the
workforce and for UK
manufacturing, Cameron said in a
statement.
Todays announcement
demonstrates the strength of the
UK aerospace sector and the
important role it plays in growing
and rebalancing our economy.
Alongside AirAsias chief
executive Tony Fernandes, Cameron
toured the Broughton plant, which
employs over 5,000 people and will
be making the wings of the
aircraft.
Other major parts are made in
France, Germany and Spain.
The announcement comes a day
after data showed that the number
of people in work in Britain hit a
record high in November, offering
some relief to a government
struggling with unpopular
austerity measures and a sluggish
economy. The contract also
reaffirms AirAsia, Asias largest
low-cost carrier, as the worlds
largest A320 customer by number
of aircraft ordered.
We have just bought 100 planes
which makes a total of 475. To meet
the amazing demand in Asia,
Fernandes wrote on Twitter.
Wood Group drops in spite of
an upbeat trading statement
OIL AND gas services firm John
Wood Group said yesterday that it
expects to deliver good growth
for the year in line with
expectations, despite a subdued
downstream market outlook.
The FTSE 100 firm said in a pre-
closing trading statement
yesterday that Wood Group PSN
was boosted by strong
performance in the North Sea and
North America, although it added
that it expects to lose around
$20m (12.4m) this year on a
contract with Petroleum
Development Oman.
BY ALEX WYNICK
The seven-year engineering and
maintenance contract, worth
$800m, was awarded in 2010 to
provide energy and petroleum
operations in the Arabian Gulf.
The company said that it was
taking steps to reduce losses in
Oman for 2013, and hopes that the
contract will become profitable in
2014.
Meanwhile its engineering
divisions core profit was predicted
to be up 30 per cent for the full
year.
We anticipate further good
growth in 2013 and remain
confident in the longer-term
prospects, Wood Group said
yesterday.
Despite the upbeat comments,
the company was the biggest blue
chip faller yesterday, closing down
4.55 per cent at 733.5p.
John Wood Group PLC
13Dec 7Dec 10Dec 11 Dec 12Dec
740
750
760
770
780 p
733.50
13Dec
EUROPES largest budget carrier,
Ryanair, yesterday lost its appeal to
block an investigation into its near-
30 per cent stake in rival Aer
Lingus.
The UKs Court of Appeal ruled
that it is within the jurisdiction of
the Competition Commission (CC)
to investigate Ryanairs ownership.
The CC is investigating the case
after the Office of Fair Trading
ruled that the stake threatens
competition in the UK airline
market, and could lead to Ryanair
being forced to reduce its golding.
Ryanair appeal over Aer Lingus
bid hit by court rejection in UK
BY JAKOB VILLUMSEN
Aer Lingus chairman, Colm
Barrington, said he was delighted
with the ruling and called it a key
milestone on the path toward
Ryanair being required to divest its
shareholding in Aer Lingus.
Ryanair plans to take the
rejection to the UK Supreme Court
for review.
Meanwhile, Ryanair added two
new board members yesterday to
try and address the gender balance
in its boardroom. Julie ONeill, the
former secretary general of the
Irish Department of Transport, and
Paypal exec Louise Phelan were
welcomed to the firm yesterday.
FRIDAY 14 DECEMBER 2012
17
NEWS
cityam.com
Michael OLearys Ryanair plans to appeal the decision in the Supreme Court
THE US unit of aerospace company
BAE Systems has won a five-year
contract worth $400m (248m)
with the US Navy, it announced
yesterday.
The London-listed company will
perform inspections, maintenance
and modifications for more than
300 T-34, T-44 and T-6 trainer
aircraft used by the Chief of Naval
Air Training in Florida and Texas.
This is a major win for our
team, significantly expanding our
support to the US Navy for trainer
aircraft, said Gordon Eldridge,
vice president and general
manager of Aerospace Solutions at
BAE Systems.
Dave Herr, president of BAE
BAE clinches a $400m deal to
service US Navy trainer aircraft
BY ALEX WYNICK
Systems Support Solutions, said:
This win strengthens our position
in the aviation services market
and creates opportunities for
additional organic growth.
It was a major win for BAE,
which beat incumbent Sikorsky
Aircraft, a unit of United
Technologies Corp, and L-3
Communications Holdings to
secure the contract.
This is BAEs second major
military deal in a week, and is
expected to expand its services
business significantly.
On Monday, BAE won a further
560m deal to complete the
Audacious submarine for the
Ministry of Defence.
It had already won 640m of
work on Audacious.
FRENCH food group Danone said
yesterday that it plans to cut jobs
in Europe in an attempt to save
200m (162.2m) over the next two
years.
The company, the biggest
yoghurt maker in the world, said
job losses will be restricted to
managerial roles, and will be
based on voluntary departures,
but did not comment on how
many positions will be cut.
Danone has been struggling to
improve European sales through
the recession, with a 1.5 per cent
drop in third-quarter sales in
Europe, and some businesses
falling by as much as 10 per cent.
Danone seeks more savings as
austerity in Europe dents sales
BY ALEX WYNICK Activist investor Nelson Peltz,
who has a one per cent stake in
the company, has been pressuring
the company to save profits and
reduce costs.
Danone spokesman Laurent
Sacchi denied that Peltz had
influenced the decision to cut
staff: We have thought for several
weeks, if not months, about a way
to regain a competitive edge, he
said.
Danone warned in June that its
operating profit margin would fall
by 50 basis points to 14.1 per cent
this year and investors have been
bracing themselves for a similar
decline next year as economies
deteriorate. Danone has yet to give
its official outlook for 2013.
Profits in the airline
industry are set to take off
FRIDAY 14 DECEMBER 2012
18
Wall Streets
rally halts over
economic fears
T
HE S&P 500 ended its six-day
winning streak yesterday,
retreating as worries intensified
that Washington's fiscal cliff
negotiations were dragging on with
little progress.
Anxiety about the drawn-out talks
between Democrats and Republicans
was enough to offset encouraging
data on retail sales and jobless
claims .
There is concern that tax hikes and
spending cuts, set to begin in 2013 if
a deal is not reached in Washington,
will hurt growth. The stock market
has taken the heated rhetoric in
stride of late, but downbeat remarks
from Republican House Speaker John
Boehner prompted some selling on
Thursday.
After coming close to a one per
cent decline for the day, the S&P 500
pared losses late in the session. The
index had posted six straight
sessions of gains through
Wednesdays close, and at one point
on Wednesday, the S&P touched its
highest intraday level since 22
October.
The Standard & Poors 500 Index
fell 9.03 points, or 0.63 per cent, to
close at 1,419.45. The Dow Jones
industrial average tumbled 74.73
points, or 0.56 per cent, to 13,170.72
at the close. The Nasdaq Composite
Index slid 21.65 points, or 0.72 per
cent, to end at 2,992.16.
Apple's stock, down 1.7 per cent at
$529.69, was among the biggest
drags on the Nasdaq, while
International Business Machines,
down 0.5 per cent at $191.99, was
among the biggest weights on the
Dow.
A US jury found that Apple's
iPhone infringed three patents
owned by MobileMedia Ideas.
B
RITAINS leading share index fell
yesterday as concerns over US
fiscal negotiations resurfaced,
prompting investors to
consolidate recent gains made during
the longest continuous rally of the year.
The FTSE 100 index was down 16.24
points, or 0.3 per cent, at 5,929.61,
having closed 0.4 per cent higher at a
nine-month closing peak on Wednesday
following six days of consecutive gains.
The index recovered slightly in
afternoon trading from early falls
following encouraging unemployment
and retail data from the United States.
However, shares fell back towards the
intraday trough of 5,918 after US House
Speaker John Boehner accused
President Barack Obama of being
willing to slow walk the economy
towards fiscal crisis.
Federal Reserve Chairman Ben
Bernanke had set the tone for the day's
trading, warning that monetary policy
wont be enough to offset damage if
politicians fail to avert the fiscal cliff
of steep tax hikes and budget cuts
which could throw the worlds biggest
economy into recession.
AstraZeneca was the most heavily
traded stock in the index, trading over
twice its 90-day daily average volume,
while FTSE volume was at 70 per cent.
The drug company lost 2.8 per cent
and took the most points off the index
as it said an experimental rheumatoid
arthritis drug proved inferior to Abbott
Laboratories Humira in a clinical study.
Profit taking was seen as a theme across
the index, with the FTSE expected to
resume its upward path heading into
the year end despite the sessions losses.
BESTof theBROKERS
Johnston Press PLC
7Dec 10Dec 11Dec 12Dec 13Dec
p 14.75
14.50
13.75
14.00
14.25
14.75
13 Dec
JOHNSTON PRESS
Panmure Gordon has kept
a strong buy rating on
the publishing group and
increased its target price
to 18p. The broker says
being elevated to the FTSE
Small Cap index will have
a positive effect on shares.
DASHBOARD CITY
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
FTSE
13Dec 7Dec 10Dec 11Dec 12Dec
5,950
5,940
5,930
5,920
5,900
5,890
5,910
5,921.49
13 Dec
Travis Perkins PLC
7Dec 10Dec 11Dec 12Dec 13Dec
p 1,120
1,110
1,070
1,080
1,090
1,100
1,060
1,072.00
13 Dec
TRAVIS PERKINS
UBS has kept its neutral
rating for Travis Perkins,
and lowered its price
target to 1,100p as product
inflation for building
supplies fell from two to
zero per cent in the second
half, and like-for-like sales
fell by 1.8 per cent.
Victrex PLC
7Dec 10Dec 11Dec 12Dec 13Dec
p 1,680
1,660
1,580
1,600
1,620
1,640
1,560
1,581.00
13 Dec
VICTREX
Broker Numis has issued a
hold rating for the
polymer manufacturer,
with an increased target
price of 1,593p. Results for
this fiscal year have been
respectable but Numis
remains cautious for
next year.
Carmignac Gestion
Vincent Steenman has been
appointed to the asset
management firms portfolio
management team. He joins from
Zadig Asset Management, where
he was a partner. Steenman has
also held roles at the LVMH Group
Arnault Family Office and Morgan
Stanley.
Allele Fund
John Shea has been appointed to the investment funds
advisory board. He is co-owner of Shea Homes, and has also
previously held audit positions at Peat, Marwick, Mitchell &
Co, a predecessor of KPMG.
Innovation Group
The business services firm has appointed Louise Fisk as
head of global communications and marketing. She joins
from Logica, where she managed global public relations
and communications.
Old Mutual Global Investors
The investment firm has announced four appointments.
John Shepherd joins as head of UK discretionary sales from
UBS Global Asset Management. Nick Pearse joins as
discretionary sales manager, south from Milton Asset
Management. Brian McLaughlin joins as advisory sales
manager, north from Prudential UK Intermediaries. And
Graeme Brown joins as advisory sales manager, south from
Momentum Global Investment Management.
Chadbourne & Parke
The law firm has expanded its international arbitration team
with two new partner appointments. Mark Beckett and
Rachel Thorn both join from Latham & Wakins. Beckett is
additionally a lecturer in law at Harvard Law School, and
Thorn specialises in international commercial arbitration.
Simmons & Simmons
Jay Lee has been appointed partner in the law firms
financial markets practice. He joins from Standard
Chartered, where he was head of debt capital markets legal
for North East Asia.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
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in association with
Ominous fiscal cliff talk from Feds
Ben Bernanke spooks the FTSE 100
L
ETS open the kimono. The
language of business is a joke.
It now seems to be best
practice to get your ducks in a
row for corporate meetings by
memorising phrases like value
proposition, point person and core
competency. At the end of the day,
buzz phrases and bizarre metaphors
may take it to the next level, but the
most insidious part of this corrosion
of office communication is more
banal: loose usage, cliche and jargon
that conceal lazy thinking.
What a pleasure, then, to receive
in the post a copy of The
Unpublished David Ogilvy. In this
anthology of office prose, most of
which was never intended for a
public audience, the Father of
F
ORGET the Energy Bill; the
announcement that exploration
for shale gas can now resume is
the big energy story of 2012. In
Lancashire alone, there is
enough shale gas in the ground to
meet Britains needs for decades. But
the big question is what proportion
can be developed at a reasonable cost.
Yesterdays decision means that we can
now find out.
Even on pretty cautious assumptions,
the benefits of a new source of domes-
tic gas could be immense. There are
three principal dividends.
Firstly, economic. We estimate that
developing a shale gas industry could
provide 35,000 jobs, many of them
highly-skilled and in parts of the coun-
try that need them most. Shale gas will
also generate tax revenue and improve
the UKs balance of payments.
According to the Office for Budget
Responsibility, North Sea oil and gas
revenue will fall from over 11bn last
year to less than 5bn in 2015. A grow-
ing shale sector could help to fill that
hole. And a recent report from the
Pyry energy consultancy found that
cityam.com/forum
The UKs balance of
trade could improve by
3bn a year through
lower gas imports
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
FRIDAY 14 DECEMBER 2012
CORIN TAYLOR
Green light for shale: Now Britain
will benefit from the dash for gas
the UKs trade balance could improve
by over 3bn a year through lower gas
imports.
Secondly, environmental. Gas is the
ideal fuel to provide back-up electricity
to intermittent renewables like wind
and solar. The development of cheap
UK gas will help to accelerate the move
away from coal, reducing carbon emis-
sions and improving air quality. Using
natural gas in road transport is anoth-
er major opportunity, and could com-
plement electric and hybrid cars in
cutting the thousands of deaths each
year from polluted streets.
Thirdly, security. Britain currently
imports around half of its gas, and
falling North Sea production means
that imports are projected to reach
three quarters of usage by 2030. UK
shale gas can halt this rise. Shale devel-
opments around the world are also
likely to lead to the link between oil
and gas prices breaking down, as has
happened in the US. But transporting
natural gas by sea or long-distance
pipeline can be expensive. Indigenous
production will remain important.
The official reports have concluded
that the hydraulic fracturing process is
safe if conducted properly. But strong
regulation is important to ensure that
no corners are cut. As energy secretary
Ed Davey pointed out yesterday, the
seismic controls placed on shale gas
fracking are more stringent than those
for geothermal energy, construction
and quarrying projects. And with the
Lancashire shale many times thicker
than the leading plays in the US, con-
siderably more gas can be extracted
from each well. In Britain, thousands
of wells dotting the landscape are
therefore unlikely to be needed.
As in so many cases, the shale revolu-
tion began in the US. From a standing
start, shale now accounts for around a
quarter of US natural gas production.
Natural gas prices have tumbled to
around a third of those in Britain, lead-
ing to a manufacturing renaissance as
industry returns from the Far East and
relocates from Europe. Cheap gas is
increasingly displacing coal in electric-
ity generation, meaning that carbon
emissions have fallen more quickly
than in any other country over the last
few years. And with an accompanying
boom in shale oil production, North
America is on a rapid path towards
energy independence.
Other countries, particularly the
major coal users, are racing to catch up.
China has set out ambitious plans to
produce up to 100bn cubic metres of
shale gas annually by 2020 about as
much as the UKs entire consumption.
South Africa removed a ban on
hydraulic fracturing in September.
Poland will have 34 exploration wells
completed by the end of this year. And
India will unveil a shale gas explo-
ration regime over the next few weeks.
Globally, the International Energy
Agency believes that extensive shale
developments outside the US will lead
to natural gas and renewables going
hand-in-hand as the major energy
growth stories of the next 25 years,
with each energy source accounting
for around a third of global energy
demand growth through 2035.
Less than 40 per cent of UK gas
demand is for electricity, and so howev-
er successful we are at decarbonising
the power sector, gas will still be need-
ed in large quantities for heating,
industry and potentially road trans-
port for several decades to come. So
Britain faces a choice between ever-ris-
ing imports and developing a great
source that is under our feet.
Fortunately, it looks like weve made
the right one.
Corin Taylor is a senior economic adviser at
the Institute of Directors (www.iod.com).
Advertising not only reveals much
about his distinctive approach to his
profession, but also offers a
practical masterclass in clear
English as a critical business tool.
That it comes from a marketing
man, a profession too often
associated in the popular mind with
obfuscation and misdirection,
makes it all the more impressive.
On 7 September 1982, Ogilvy
drafted a memo for internal
circulation on How to write. Here
is how he began:
If everybody in our company
took an exam in writing, the
highest marks would go to the 14
directors.
The better you write, the higher
you go in Ogilvy & Mather. People
who think well, write well.
Woolly minded people write
woolly memos, woolly letters and
woolly speeches.
Ogilvy also drew a connection
between writing well and a writers
truth and integrity. In one speech,
he attacked verbal and
typographical weasels that
encourage public scepticism about
the truth of advertisements. He
encouraged his audience: Lets take
our tongues out of our cheeks. Lets
try and write like human beings.
His final tip in a list for his
copywriters was: Whenever you
write a commercial, bear in mind
that it is likely to be seen by your
children, your wife and your
conscience.
Ogilvys passion for clear and
honest words finds an echo in
George Orwell, who wrote: Good
prose is like a windowpane. In his
1946 essay Politics and the English
Language, Orwell agrees that clear
language is the first step to clear
thoughts, arguing that the fight
against bad English is not frivolous
and is not the exclusive concern of
professional writers. It was a theme
that haunted his work. The horrors
of Newspeak, in his masterpiece,
1984, explore just how far the
corrosion of language might be used
to constrain intelligent thought.
Orwell worried about the impact
of language on politics, but today it
is business that should be
concerned. Not just because sloppy
language risks encouraging sloppy
thinking, but because a sector that
can only speak in jargon leaves the
public with the impression it has
something to hide. Lets park the
thought that language doesnt
matter. We need to manage the
optics of this.
Marc Sidwell is managing editor of
City A.M. The Unpublished David Ogilvy
is published by Profile.
THE LONG
VIEW
MARC SIDWELL
At the end of the day the business cliche just masks woolly mindedness
MORNING UPDATE
A.M.
21
FRIDAY 14 DECEMBER 2012
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
Bankers respond
[Re: British Bankers Association mulls
merger in hunt for cash, yesterday]
The British Bankers Association (BBA) has
not been directed by its members to seek to
merge with any other trade association. At
its recent meeting, the board voted
unanimously to approve the budget for
2013, which accommodates the expected
loss of income from Libor licensing. We
believe this is a real vote of confidence in the
BBA, and its members recognition of its
continued importance to our industry.
Sir Nigel Wicks, chairmanof theBritishBankers
Association.
[Re: New tax avoidance rule is a recipe for
chaos and disorder, yesterday]
Ronnie Ludwig makes a crucial point about
the new tax avoidance rule. Its incredibly
important that something is done artificial
and aggressive tax avoidance destroys the
legitimacy of the system. But that rule must-
nt damage legitimate tax planning, and the
devil is in the detail. Fair and just
arrangements are clearly subjective and it
would be better to have a certain and solid set
of rules. We also need an independent body
to regulate the decisions, as HMRC is clearly
an interested party.
MariaSellers
An anti-avoidance rule is just a sticking plas-
ter. The only way we can end pernicious
avoidance strategies is by simplifying taxes
and lowering rates.
BobHolden
O
NCE upon a time, we had to
read the old classics to hear
about the two kinds of
people in need the
labouring poor and the
undeserving poor. Dickensian scenes
of the hard-working Bob Cratchit,
abused by his employer Scrooge,
contrasted with the feckless,
drunken Bill Sykes.
But is it too far fetched to say were
heading back in this direction?
Attitudes have hardened, with sym-
pathy for those on benefits dwin-
dling. And not surprisingly, George
Osborne has capitalised on this shift
and grasped it firmly to his austerity
chest slashing housing, unemploy-
ment and disability benefits. In the
Autumn Statement, he pegged the
increase in benefits to just 1 per cent
each year for the next three years,
despite expectations that real wages
for those in work, and inflation, will
increase by more. As the economist
Jonathan Portes shows, many bene-
fits have been falling relative to aver-
age earnings for more than 30 years,
despite a slight recent upturn as pri-
vate sector wages stagnated. But
thats not what the public think.
Such a world makes politics diffi-
cult, especially for Labour. It feels
uncomfortable with the idea that
those on low incomes should bear so
much of the strain of the current fis-
cal squeeze. After all, the banking
debacle that led to the need for aus-
terity had little to do with them.
Ed Miliband rightly feels he is on
firm ground when he questions the
cutting of benefits for those in work
the strivers and the squeezed mid-
dle. But even Labour is unsure of its
touch on benefits for those out of
work. Osbornes characterisation of
them as lying in bed may be mislead-
ing. But to be found on the wrong
side of the vicious atmosphere on
scroungers is a dangerous place to be
TOP TWEETS
Shale offers engineering jobs, lower energy
bills, new tax revenue, less reliance on Russia,
and reduced pollution. Whats not to like?
@wallaceme
Gas expert professor Lord Stern says shale gas
is unlikely to be supplied in enough quantities
to be commercially viable.
@BanksJenny
Banking union is the first part of Hermann Van
Rompuys roadmap to a European superstate.
Why is David Cameron backing it?
@Andyjon
Its essential for the City that George Osborne
makes no concessions on Eurozone banking
union merely for the sake of agreement.
@A_Liberty_Rebel
Is Eurozone banking union a danger to the
City of London as a global financial centre?
YES
The rationale for an EU banking union is clear: if Eurozone bank
bailout costs are socialised, then bank regulation must be
centralised. But this is the wrong approach. Instead, we should focus
on ensuring that banks can fail safely, without bailouts. Roland
Vaubel explained the dangers of a banking union in yesterdays City
A.M. Regulators at EU level will be captured by the industry given the
lack of democratic accountability. A banking union prevents member
states from developing regulatory structures that are appropriate for
their own circumstances: Greece and Germany have very different
financial systems. EU structures are also amenable to exploitation by
countries that want to raise their rivals costs. We will see regulatory
costs and restrictive practices imposed on Britain through the back
door by EU institutions that are unaware of the benefits of finance.
Philip Booth is programme director at the Institute of Economic
Affairs.
Philip Booth
NO
Mark Boleat
The devil will be in the detail, but this agreement appears to be a
positive step towards tackling the Eurozones problems while
maintaining the interests of countries outside the banking union. The
issue of voting rights in the European Banking Authority is of critical
importance, and it is vital that a genuinely level playing field is
preserved across the single market. There remain a number of
unanswered questions, but this deal seems to be good news for both
Europe and London. As Europes financial capital, London is not
simply an interested bystander in this debate. We are home to the
most complex parts of the euro area banking system; for instance
banks in the UK hold around 1.4 trillion in euro-denominated assets.
That is why it is crucial we continue working with our European
partners to shape a positive outcome that delivers financial stability,
while protecting the integrity of the single market.
Mark Boleat is policy chairman at the City of London Corporation.
RAPIDresponses
if you want to win elections.
In such a world, the question may
soon be asked, if the state under
either party is not willing to care for
them, who will look after the unde-
serving poor?
Perhaps this will be the future role
for charity and philanthropists. For
many decades, this sector felt it
added value to a fairly comprehen-
sive welfare state by filling in some
gaps, funding innovation and sup-
porting new causes. Maybe in the
future, however, we will need to look
to the modern equivalents of Joseph
Rowntree and George Peabody to
actually provide any services at all for
those at the bottom of the pile.
Already many unpopular causes
only survive by getting help from
charitable organisations and sources
support for prisoners, asylum seek-
ers, and those with severe mental
health problems. Since we will
always have those who cannot get by
in modern society, perhaps it will fall
to real charity and faith-based groups
to once again support them.
Some may think this a desirable
state of affairs ending forever the
moral hazard associated with the
welfare system. But many of us, sit-
ting in our warm homes with the
turkey roasting, will feel that while
Dickensian is a nice atmospheric
phrase, it is not one we expected to
see lived out again in our lifetime.
Dan Corry is chief executive of New
Philanthropy Capital and a former adviser
to Gordon Brown.
www.thinkNPC.org
DAN CORRY
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Charities take the
burden as parties
harden on welfare
LIFE&STYLE
FRIDAY 14 DECEMBER 2012
22
cityam.com
A
FEW months ago I went to a
reading of The Hobbit by Andy
Serkis, the actor most famous
for providing the voice of
Gollum in Peter Jacksons The Lord
of the Rings trilogy. He was reading
the part where Bilbo Baggins first
encounters the mysterious Gollum,
deep under a goblin-infested
mountain. For the parts of Bilbo and
the narrator, his voice had a child-
friendly Jackanory quality to it but
when it came to Gollum, he
transformed vocally and physically
into the creature we recognise from
the movies. He hissed and purred and
argued with himself, all at the same
time, like some malevolent
beatboxer. I had always assumed
there was some degree of audio
trickery used to construct Gollums
distinctive voice but no, he was
there, right in front of me. Even
Serkis' face became Gollum: twisted,
contorted and mad. It was
captivating and slightly alarming,
and made all the more surreal by the
gigantic, Hobbits second breakfast
banquet table he was perched next to
and some hairy-footed violinists (I
definitely didn't dream this).
There were times during The
Hobbit: An Unexpected Journey that I
found myself wishing they had just
filmed Serkis reading the whole
thing.
The decision to make The Hobbit
into a trilogy has received a fair bit of
stick. Compared to The Lord of the
Rings, it is a slip of a book (by the
same reasoning, LOTR should have
spanned nine films) it felt like it was
cashing in on the last filmable JRR
Tolkien novel (I cant imagine any bid-
ding wars for film rights to the
Silmarillion). Is there enough meat to
fill three films, even when you bring
in Tolkiens various appendices and
excerpts? On the strength of the first
installment: no, there isnt.
It kicks off with one of Jacksons
trademark swooping shots through
a gigantic dwarven palace, which
brings back happy memories of
his epic LOTR. But then were
whipped back to The Shire
(home of the Hobbits, obvious-
ly), where a pre-Sauron
Elijah Wood is a
reminder of how
annoying Hobbits
are when they are
not being
attacked by orcs. He doesnt last long,
though, because the rest of the story
is told through a big flashback, trans-
forming Ian Holms familiar Old
Bilbo into Tim from the office. Then it
starts to go wrong. The first act is set
entirely in Bilbos home in The Shire,
where a bunch of dwarves turn
up to ruminate on their lost
homeland. This doesnt
stop them from squeez-
ing in two musical
numbers, one of
which, involving
throwing crock-
ery around,
wouldnt have
looked out of
place on
CBBC. It
takes some-
w h e r e
between
half an
h o u r
a n d
sev-
eral years for them to leave The Shire
and begin the eponymous
Unexpected Journey, by which
time I was thoroughly sick of
both dwarves and hobbits. Set
The Hobbit: A journey worth taking?
GOING OUT
FILM
THE HOBBIT: AN UNEXPECTED
JOURNEY
Cert 12A | By Steve Dinneen
hhhii
pieces are pro-
vided through skirmishes
with trolls and goblins and
the occasional orc, and the battle
scenes are impressively epic. The
problem is, its all very disjoint-
ed, and very little like I remem-
ber the book. Were there really
so many protracted fight
sequences? Was Randagast (a
spirited appearance by
Sylvester McCoy) such a big
part? At times it feels like the
material has been stretched to
breaking point to fill the time.
That isnt to say it isnt fun.
Familiar faces including the magiste-
rial Ian McKellen as Gandalf, Cate
Blanchett as Galadriel and
Christopher Lee as Saruman, make
The Hobbit hard to dislike. Its a bit
like a reunion, at which everyone is
older and more jaded but determined
to relive the good old days. And then
there is Serkis, who completely steals
the show. The scenes involving
Gollum are enthralling. His perform-
ance should be remembered along-
side the cinema greats Brando in
the Godfather or Daniel Day-Lewis in
There Will Be Blood. But even at its
best, The Hobbit lookswrong.
Almost like youre watching a made-
for-TV movie.
Jackson shot The Hobbit in 48
frames per second, which is twice as
many as were used to. His reasoning
is that more is better. But it also
makes everything look fake, like a
giant film set, which is exactly what it
is. Doubling the frame-rate gets rid of
the blur and strobing but thats
what our brains are used to seeing.
That is what makes cinema look dif-
ferent to TV. Maybe in a few years
people will look back piteously at our
generation, with our regressive love
of blurry old movies, as we might
look at an old man who cant get used
to listening to music without a
gramophone.
The Hobbit: An Unexpected Journey
had a lot to live up to one of the
most beloved childrens books ever
written, one of the greatest fantasy
movies ever made. And it inevitably
falls short. Too many factors conspire
to stop it reaching greatness. That
said, even Peter Jackson on a bad day
is thoroughly watchable just pre-
pare yourself for a very long journey
indeed.
At times it feels like
the material has been
stretched to breaking
point to fill the time.

Compared to the
much-loved novel,
the film falls short.
While the film is not without its flaws, the
scenes with Gollum are spectacular.
FRIDAY 14 DECEMBER 2012
23
Over 18s only
hippodromecasino.com
The Hippodrome Casino, Leicester Square
Londons
Biggest
New Years Eve
Party
STARRING NATALIE WILLIAMS
SOUL FAMILY & FRIENDS
SOUL AND
MOTOWN
PARTY LIVE
FILM
NEIL YOUNG: JOURNEYS
Cert PG | By Alex Dymoke
hhhii
The film puts a spotlight on Youngs
life both on and off the stage.
The narrative focuses on Kate and Aarons (above) marriage as much as it explores Kates addictions.
An affectionate
glimpse into the
world of Neil Young
AS A portrait of an artist at work,
Neil Young: Journeys is as intimate
as it gets. Director Jonathan
Demme has created a concert
movie interspersed with footage
of the rocker guiding him around
rural Ontario where he grew up.
Journeys delves into Youngs form-
ative years: we see his mothers
prized old lawn, the lake where he
caught fish as a boy and the place
where he slept in a tent next to his
chicken coop.
The performance sections
(filmed at Torontos old Massey
Hall) are equally personal. Demme
switches between a central
camera located in the sound
booth, and one attached directly
to the mic. We see Youngs mouth
close up as it enunciates his
tremulous whine. The camera
captures the rust-brown stubble
on his jowl and the lens is flecked
with spit by the end of the
performance perhaps a little too
personal.
The airy, green Ontario
countryside provides effective
respite from the intensity of the
performance inside the concert
hall. It also provides interesting
insights into the songs lyrical
content.
As he re-explores the places he
explored as a boy, Young reflects
on a childhood spent with fish,
turtles, chickens and foxes. He has
a clear affection for the great
outdoors, which sheds light on
the environmentalism that has
run throughout his 40 year career.
The film opens with Peaceful
Valley Boulevard, a haunting
green battle cry from 2010s Le
Noise. The majority of tracks are
from that album so dont go in
expecting a run through of the
classics. There are a few thrown in
though, and its one of these that
strikes a poignant note as the
aging rocker returns home. 1979s
My My, Hey Hey (Out of the Blue),
a plaintive reflection on the
shortlived nature of rock-stardom,
seems both fitting and wide of the
mark: Its better to burn out than
to fade away. But Young is not
burning out or fading away. He is
older and somewhat wizened, but
as Journeys shows, hes still
capable of a mesmerizing
performance.
KATE AND Charlie are a couple
who drink together. A lot. And,
for the most part, they have a
pretty good time doing it,
barring the sledge-hammer
hangovers and wet mattresses.
Except, in Kates words, things
start to go from embarrassing
to scary, not least when she
goes to her job in a primary
school so drunk she vomits in
front of the kids.
Films about addiction can
have a tendency to preach to
paint a black and white picture
where alcohol, or drugs, are
bad and being sober isnt. But
Smashed isnt a polemic parts
are a paean to Kate's drinking
days: They say that your worst
day sober is better than your
best day drunk. Thats not true
I had some amazing times
drinking. And while Kates
path through AA is part of the
story, her changing
relationship with her husband
is equally prominent as she
tries to give up drink, shes
faced with abandoning her
social life, and maybe her
marriage, too. This portrayal of
alcohol as both a facilitator of
good times and bad, of love as
well as hate, makes Smashed
stand out in a crowded field of
addiction dramas.
Mary Elizabeth Winstead
puts in a fine performance as
Kate, flitting deftly between
anguish and euphoria and
Aaron Paul Breaking Bads
meth addicted anti-hero also
shines as the selfish but
likeable husband.
There are no good guys or
bad guys, and, while it is often
difficult to watch, the pay-off is
a rewarding and, at times, very
moving film.
Smashed isnt your standard addiction flick
FILM
SMASHED
Cert 12A | By Steve Dinneen
hhhhi
24
TV & GAMES
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League Preview2amGreat
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10.05pmFILMScary Movie 2
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HISTORY
7pmIce Road Truckers 9pm
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experience of three addicts in
prison. 12amWorlds Toughest
Prisons 1amWheeler Dealers
2amSons of Guns 3amAuction
Hunters 3.50amWheeler
Dealers 4.40amDiscovery Atlas:
India Revealed 5.30am-6am
Meerkat Manor
DISCOVERY HOME &
HEALTH
7pmDr Oz 8pmKate Plus 8 9pm
I Didnt Know I Was Pregnant
10pmSupernanny US 11pmIm
Pregnant and a Trucker 11.30pm
Im Pregnant and a Stripper
12amI Didnt Know I Was
Pregnant 1amSupernanny US
2amIm Pregnant and a Trucker
2.30amIm Pregnant and a
Stripper 3amSupernanny US
4amA Baby Story 5am-6am
Portland Babies
SKY1
7.30pmThe Middle 8pmModern
Family 8.30pmSpy 9pmAn Idiot
Abroad 3 10pmA League of
Their Own 11pmRoad Wars
12amCop Squad 2amRoad
Wars 3.45amCrash Test
Dummies 4.10am-6amStargate
BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmNigel Slaters 12 Tastes
of Christmas: BBC News:
Regional News
8pmEastEnders 8.30pm
Outnumbered 9pmHave I Got
News for You 9.30pmLive at the
Apollo 10pmBBC News 10.25pm
Regional News 10.35pmCHOICE
The GrahamNorton Show11.20pm
The National Lottery 11.30pm
Would I Lie to You? The Unseen
Bits 12amEastEnders 1.55am
Weatherview2amSign Zone: Fake
or Fortune? 3amQuestion Time
4am-6amBBC News
6pmCelebrity Eggheads
6.30pmStrictly Come Dancing
It Takes Two
7pmNigella Express
7.30pmCoast
8pmMastermind
8.30pmAn Island Parish
9pmWestminster Abbey
10pmQI
10.30pmNewsnight
11pmReview Show: Weather
11.50pm Rolling Stones:
Crossfire Hurricane
12.50am Muddy Waters and
the Rolling Stones Live at the
Checkerboard Lounge
1.50amBBC News 4am-6amClose
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmYouve Been Framed!
8.30pmCoronation Street
9pmCHOICE A Night of
Heroes The Military Awards
10.30pmITV News
11pmLondon News
11.10pmFILMHard Target.
1993.
12.50am The Store; ITV News
Headlines
2.55amFILM Disclosure: Thriller,
starring Michael Douglas. 1994.
5am-5.30amITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.30pmUnreported World
7.55pm4thought.tv
8pmCome Dine with Me
9pmPeter Kay Live at the Top
of the Tower
10.20pmAlan Carr: Chatty
Man
11.25pm4Funnies: Uncle
11.55pmFull English
12.30amRicky Gervais 1amBritish
Comedy Awards 2012 2.45amMy
Name Is Earl 3.05amGlory Daze
3.50am90210 4.30amDeal or No
Deal 5.25am-6.10amCountdown
6pmHome and Away
6.30pm5 News at 6.30
7pmCowboy Builders: 5 News
Update
8pmNorth Pole Ice Airport:
5 News at 9
9pmCHOICE The Mentalist:
A journalist is murdered.
10pmCastle
10.55pmLaw & Order:
Criminal Intent
11.55pmInside Hollywood
12amSuperCasino
3.50amMotorsport Mundial
4.20amHouseBusters 4.45am
Great Scientists 5.10amMichaelas
Wild Challenge
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6 7
8 9
10
11 12 13 14
15 16 17 18 19
20
21 22
23
13 11 17
45
9 6
29 18
24
45
38
8 11
21 24
45
14 7 7
14
6
23
30
22
15
34
16
15
9
3
10
4
7
35
11
33
13
23
13
19
12
25
ACROSS
1 Notorious Boston
murderer (9)
8 Helicopter
propeller (5)
9 Snow leopard (5)
10 ___ and outs (3)
11 Ameliorate (5)
13 Skid (5)
15 Move on hands
and knees (5)
18 Ancient unit of
length (5)
20 Extreme anger (3)
21 Biblical city known
for vice and
corruption (5)
22 Cloth woven
from ax (5)
23 Apartment on the top
oor of a building (9)
DOWN
2 Name of a book (5)
3 Harsh or corrosive
in tone (5)
4 One dozen
dozen (5)
5 Boredom (5)
6 Bag with a handle
used to carry
papers, les, etc (9)
7 Doing again (9)
12 Novel (3)
14 Romanian
monetary unit (3)
16 Mix up or
confuse (5)
17 Boundary (5)
18 Instrument played
with a bow (5)
19 Component parts
of a skeleton (5)
S
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4

4
S T A N D M U C U S
O G I K E H H
L O E S S C A D O
I O A T H M N
D R E S S A W O K E
P S N I
A L I C E I N S E T
L S M I S T I
O U T B T H E R E
N L L E I W I
G E E S E C L E A N
8 9 3 2 1 1 4
2 6 4 9 1 3 7 9
1 4 2 9 4 7 6 8
3 8 7 2 2 1 3
9 7 8 3 2 8
9 8 5 1 3 6 2 4 7
1 7 8 9 8 5
6 1 8 9 8 7 5
2 4 3 6 1 6 4 1
1 2 7 6 5 9 8 3
5 9 9 2 1 9 2
4
4
4
4
4
4
4
4
4
The nine-letter word was
IMPORTUNE
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
FRIDAY 14 DECEMBER 2012
THE GRAHAMNORTON SHOW
BBC1, 10.35PM
Graham talks to Martin Freeman, star
of the new Hobbit movie, comedienne
Dawn French and funnyman Lee Mack,
with Girls Aloud providing the music.
A NIGHT OF HEROES THE
MILITARY AWARDS ITV1, 9PM
Phillip Schofield and Amanda Holden
present the fifth annual gala event
from Londons Imperial War Museum,
honouring Britains armed forces.
THE MENTALIST
CHANNEL5, 9PM
Jane and the CBI team investigate the
murder of a reporter and uncover
evidence she was about to blow the
whistle on a billionaire philanthropist.
TVPICK
Arabella the Boy to be with in Cheltenhams Cross Country Chase
IT TOOK a while for the Nicky
Henderson bandwagon to start
rolling this jumps season, but it
has gone into overdrive in the
past two weeks thanks to huge
wins for Bobs Worth in the
Hennessy and Sprinter Sacre in
the Tingle Creek.
The highlight of this weekend
is tomorrows Stan James
International Hurdle (3.05pm)
and I expect Seven Barrows to be
celebrating yet another big
Saturday success as GRANDOU-
ET makes his seasonal debut in a
race he won by four lengths 12
months ago.
Unfortunately, that was his
last appearance, as he picked up
an injury prior to the Stan James
Champion Hurdle, but he is now
reportedly back to his best and
has gone well fresh in the past.
It looks effectively a three-
horse race with the favourite
almost certain to be Paul
Nicholls Zarkandar. The 2011
Triumph Hurdle winner made a
successful reappearance in the
Elite Hurdle at Wincanton, fend-
ing off stablemate Prospect
Wells.
He is also getting 4lb from
both Grandouet and last years
Champion Hurdle winner Rock
On Ruby tomorrow, so he has to
be greatly respected and is with-
out doubt my biggest worry.
Rock On Ruby is a cracking
horse, but this years Champion
Hurdle wasnt the greatest
renewal. Harry Fry is sure to have
his stable star in prime condi-
tion, but hes coming up against
two serious animals who I think
will both go very close in March.
Im sticking with Grandouet,
though. Ive always been a big
fan of this horse and he should
be backed at a general 5/2. I also
wouldnt put anyone off taking
the 12/1 Ladbrokes offer for the
Champion Hurdle he could be
a great deal shorter tomorrow
evening.
Another of Hendersons star
hurdlers is coming back for
more at this meeting and
OSCAR WHISKY is a strong
fancy to win a second Relkeel
Hurdle (3.40pm). Hes not going
to be a big price, but I cant see
any of Raya Star, Get Me Out Of
Here or Brampour getting close
to him judged by last months
Ascot run.
The big betting race of the day
is the Paul Stewart Ironspine
Charity Challenge Gold Cup
(2.30pm) and Alan Kings
Walkon looks like being sent off
favourite following an excellent
second behind Al Ferof in the
Paddy Power Gold Cup four
weeks ago.
I like Walkon, and a number
of recent winners ran well in the
Paddy Power, but he has gone
best first time out in the past few
seasons and Im not sure he has
had enough of a break after
what was surely a tough race on
soft ground.
Paul Nicholls Unioniste is
interesting, not least because
hes only a four-year-old which is
practically unheard of in a hand-
icap chase of this nature. He
jumped like a pro behind
Dynaste here last month but he
is very inexperienced and,
despite being current second
favourite, is only first reserve for
the race.
Nigel Twiston-Davies, and son
Sam, will never forget last
Saturdays Aintree double over
the National fences, but the fam-
ily could be celebrating again as
ASTRACAD holds really strong
claims.
He has an excellent record at
this track, winning at this meet-
ing 12 months ago, and,
although most of his runs have
been over two miles, he seems to
be crying out for this longer trip
now. The 8/1 with Coral should
be taken.
I will also be backing CONEY-
GREE in the Albert Bartlett
Novices Hurdle (1.55pm). He was
hugely impressive when winning
at the Open meeting and this
doesnt look a strong contest.
Mark Bradstocks five-year-old
is stepping up in trip but every-
thing he has done so far suggests
he will benefit from it. He is a
half-brother to Carruthers and
Coneygrees early performances
indicate that he could be every
bit as good, if not better than the
yards Hennessy winner.
Follow me on Twitter
@BillEsdaile for all my latest
views.
THERE is a decent card at
Cheltenham this afternoon and
the bet of the day looks to be
ARABELLA BOY in the
Glenfarclas Cross Country
Handicap Chase at 2.30pm.
Enda Bolger is the master of
these races, winning five of the
eight runnings, including the
last three with the wonderful
Garde Champetre. He has
booked Nina Carberry, who has a
fantastic record on this course,
for Arabella Boy and the seven-
year-old really couldnt be in bet-
ter hands.
The son of Beneficial needs
this step up in trip and he
should go very close off just 10st
8lb. Uncle Junior bounced back
to form to win over this course
last month but he has gone up
in the weights again which
could put paid to his chances.
Lets just hope that the fiasco
of this race 12 months ago, when
a number of jockeys took the
wrong course entering the
straight, isnt repeated.
Before the Cross Country,
BRADLEY has a great chance to
compensate punters who saw
him get narrowly beaten here as
favourite last month. Fergal
OBriens inmate lines up in the
1.55pm and is receiving bundles
of weight from Cheltenham spe-
cialist Midnight Chase, who has
won five times at Prestbury Park,
but will do well to shoulder 11st
12lb to victory.
Bradley is relatively lightly-
raced as an eight-year-old, having
had just 11 starts, and still looks
well handicapped off a mark of
138. Conditions should be per-
fect for him and I expect a big
run, although Planet Of Sound is
a danger.
AT FISHERS CROSS can prove
himself a progressive sort with
victory in the 3.40pm. A winner
of four of his six races so far, AP
McCoys mount was impressive
at Newbury last time, stretching
clear of a well-backed Paul
Nicholls horse. Hes gone up 9lb
for that, but Im not sure it will
end his winning spree.
As you would expect with 16
runners, its a competitive affair
but the majority at the top of the
weights look exposed.
Finally, dont miss MELODIC
RENDEZVOUS in the lucky last
(3.40pm) for the in-form Jeremy
Scott team. He was second to
Champagne Fever in
Punchestowns Champion
Bumper in April and was always
the type to do better over hurdles.
He was a decent second on his
seasonal debut at Exeter and his
work since then has reportedly
been of the highest order. This is
a hot race but he can mark him-
self down as a serious novice hur-
dler for the rest of the season.
We reserve the right to change prices before or during the guarantee period should there be any non-runners fromthe published list or a going change
from the time of publication of the prices. MONEY BACK: UK/ROI / website/mobile/telebet & shop customers 18+. Applies to bets struck from 18:00
13/12/2012 until race off. We will refund the win Part only of win & Each Way Singles as free bet token or cash for shop customers up to /200 per
customer. Free bet credited within 24 hours of settlement or cash upon taking losing shop bet slip to Coral shop. Free bet valid 7 days and must be
wagered in full on any Single sports bet (excludes tote pool). Stake not returned. Full terms at coral.co.uk/sports/offers/second. 50 FREE BET OFFER:
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AL L NE W C OR AL . C O. UK
If your horse finishes second to
BRADLEY
Majordomo Hospitality
Handicap Chase
3 Miles 1 Furlong 110 Yards, Grade 3 Handicap Chase,
Cheltenham 1.55pm, Live on C4
10/3 Bradley
4/1 Midnight Chase
4/1 Quartz De Thaix
5/1 Becauseicouldntsee
11/1 Master Overseer
11/1 Planet Of Sound
12/1 Billie Magern
12/1 Saint Are
25/1 Crash
Each-way 1/4 the odds a place 1-2-3
Citipost Handicap Hurdle
3 Miles, Handicap Hurdle, Cheltenham 3.05pm, Live on C4
5/1 At Fishers Cross
11/2 Inish Island
6/1 Saint Roque
8/1 Cross Kennon
8/1 Medinas
9/1 Sivola De Sivola
12/1 Monetary Fund
16/1 Kayf Aramis
20/1 Buachaill Alainn
20/1 First Fandango
20/1 Simarian
22/1 Bouggler
22/1 Counting House
22/1 Destroyer Deployed
33/1 Cockney Trucker
40/1 Air Force One
Each-way 1/4 the odds a place 1-2-3-4
Above 2 races: Non-runner money back. Rule 4 may apply.
Prices subject to fluctuation.
50 FREE BET
FOR NEW CUSTOMERS
1700+ shops coral.co.uk 0800 242 232 Text CITYAM
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25
THEPUNTER
RACING TRADER
BILL ESDAILE PREVIEWS CHELTENHAMS INTERNATIONAL MEETING
cityam.com
FRIDAY 14 DECEMBER 2012
n Pointers
CONEYGREE 1.55pm Cheltenham
(tomorrow)
ASTRACAD e/w 2.30pm Cheltenham
(tomorrow)
GRANDOUET 3.05pm Cheltenham
(tomorrow)
OSCAR WHISKY 3.40pm Cheltenham
(tomorrow)
GRANDOUET 12/1 e/w Champion Hurdle
(Cheltenham Festival))
n Pointers
BRADLEY 1.55pm Cheltenham
(today)
ARABELLA BOY 2.30pm Cheltenham
(today)
AT FISHERS CROSS 3.05pm Cheltenham
(today)
MELODIC RENDEZVOUS 3.40pm Cheltenham
(today)
Grandouet
can stake his
claim for
Champion
Hurdle glory
Nicky Hendersons Grandouet (green silks) can land back-to-back Stan James Internationals
IT WAS always going to be difficult
for Manchester United fans to wipe
the smile off their local rivals
faces following the dramatic finale
to last season. However, they did a
pretty good job of it at the Etihad
last Sunday with Robin van Persies
injury-time winner inflicting
Manchester Citys first defeat of
the season and first home league
reverse in almost two years.
City set to bounce back
from derby disaster
against shaky Magpies
Roberto Mancini praised his
team for showing the character to
come back from 2-0 down. But pri-
vately he would have been fuming
with Gael Clichys naivety to give
the ball away and absolutely furi-
ous with Samir Nasris game of
hide and seek in a three-man wall.
It was another example of Citys
poor defending this season that has
marred a number of their league
performances and nearly all of
their Champions League efforts. A
six-point gap is hardly insurmount-
able but the Italian will know full
well that his side cant give away
any more points to United, and that
starts with tomorrows lunchtime
kick-off at St James Park.
Newcastle, one of the stories of
last season, are in the middle of a
rocky patch. Aside from a home
win against a struggling Wigan
side earlier this month, the
Magpies have lost their other five
most recent Premier League games,
none of which have come against a
team currently in the top seven.
Alan Pardew has done a tremen-
dous job on Tyneside but he has
been crippled by injuries and sus-
pensions to his squad and criticism
is starting to surface about the
strength in depth at his disposal. A
fixture against the current champi-
ons, angered by the derby defeat,
wouldnt be high up Pardews
Christmas wish-list and the wound-
ed animal theory could be felt in
full force tomorrow.
City really should have taken a
point from last weekends match
and although its been a disap-
pointing campaign so far, there is
still a long way to go. I fully expect
them to bounce back in this one
and they are worth a decent bet at
4/6 with Coral in a fixture they sim-
ply cant afford to fail to win.
Mario Balotelli was desperately
disappointing against United and
he is likely to make way for Carlos
Tevez who turned the game for
City. The Argentinian is in good
form and he is worth backing at 9/2
with Coral to score the first goal.
Correct score punters should
snap up the 15/2 Coral offer about a
2-1 away victory as you cant confi-
dently back City not to concede at
the moment. Sporting Indexs total
goals quote of 2.8-3 looks bang on
the money.
Arsene Wengers feeling the pressure
FRIDAY 14 DECEMBER 2012
26
THEPUNTER FOOTBALL TRADER
NEWCASTLE ........................
MANCHESTER CITY ........................
Tomorrow 12.45pm
JUST a few weeks ago West Brom
were sitting pretty in the
Champions League places and
although theyve now slipped to
sixth after three straight defeats,
Baggies fans can hardly be disap-
pointed with where they stand
approaching Christmas.
That said, Steve Clarke will be
wary of slipping any further and
the next three games against West
Ham, Norwich and QPR give them
decent opportunities to pick up
points.
It looked for a long time in West
Hams game against Liverpool last
Sunday that they were going to
follow up the previous weekends
home victory against Chelsea.
However, two late goals gave the
Reds the points and confined the
Hammers to their third defeat in
four.
In fairness to Sam Allardyces
men, they are in the middle of a
horrible run and there is no dis-
grace in losing to Manchester
United, Tottenham and Liverpool.
A trip to the Hawthorns isnt
going to be easy for them,
although they do offer some value
at 11/4 with Coral.
The Baggies have an excellent
home record this campaign with
six wins from eight games and
there will be plenty of people will-
ing to take the even money gener-
ally on offer. Im not one of them,
though, and I find these sides dif-
ficult to split in the outright mar-
ket.
The draw is a definite runner at
12/5 with Coral, but a more sensi-
ble bet is to back both teams to
score at 8/11 with the same firm.
West Brom have found the net in
all but one of their home matches
this term and with both of these
sides conceding plenty in recent
weeks, it looks like a game where
the goalkeepers will be kept busy.
For that reason Im also going to
buy total goals at 2.8 with
Sporting Index.
WEST BROM ..................................
WEST HAM.....................................
Sunday 4.00pm
n Pointers
Manchester City at 4/6 with Coral
Carlos Tevez first goalscorer at 9/2 with Coral
Manchester City to win 2-1 at 15/2 with Coral
n Pointers
Both teams to score at 8/11 with Coral
Buy total goals at 2.8 with Sporting Index
ITS BEEN a week to forget for
Arsenal and their season is quick-
ly sliding into a full-blown disas-
ter.
Tuesdays defeat to League Two
Bradford City in the Capital One
Cup could have been passed off
had Arsene Wengers men been
sitting pretty in the Premier
League. However, a poor start to
the season sees the Gunners in
seventh place and any aspirations
of winning a first league title
since 2003-2004 have gone.
Therefore, it was no surprise to
see Wenger play a full-strength
team at Valley Parade as he bid for
the clubs first trophy in eight
years. The Frenchmans admission
after the penalty defeat that he
wasnt embarrassed at the loss
only infuriated supporters, who
are running out of patience with
his management style.
Reading are in no great shape
themselves and memories of their
Championship win last term look
a distant memory. Brian
McDermotts side have struggled
for creativity and their marquee
summer signing, Pavel
Pogrebnyak, has failed to deliver
up front. Adam Le Fondre is
another striker guilty of wasteful-
ness.
However, despite losing nine of
their 16 games so far, the Royals
have been a tough nut to crack at
the Madejski Stadium. Only
Tottenham and Manchester
United have got the better of them
on home turf in seven games.
Theyve drawn four of the other
five and I can see that trend con-
tinuing when they host Arsenal
on Monday night.
The Gunners new attack hasnt
set the world alight and I dont
predict many goals. A sell of total
goals at 3.1 with Sporting Index is
advised and Corals 7/1 for the 1-1
correct score makes appeal in
what could be a cagey encounter.
READING .......................................
ARSENAL .......................................
Monday 8.00pm
n Pointers
Draw at 3/1 on Betfair
1-1 correct score at 7/1 with Coral
Sell total goals at 3.1 with Sporting Index
BEN CLEMINSON PREVIEWS THE WEEKENDS PREMIER LEAGUE ACTION
Manchester City
cannot afford to
drop any points
at St James
Park tomorrow
Has Wenger lost his golden touch in transfer market?
IN BRIEF
British 2012 stars up for awards
n GENERAL: A stunning year for British
sportsmen and women has seen them
scoop five nominations at the Laureus
World Sports Awards. Athletes Jessica
Ennis and Mo Farah, Paralympian David
Weir, tennis star Andy Murray and Tour
de France champion Bradley Wiggins,
who all won gold at London 2012, have
been shortlisted for prizes on March 11 in
Rio de Janeiro. The triumphant
European Ryder Cup team, which
included seven British golfers, has also
been nominated for two awards.
Hartley to miss Ulster trip with ban
n RUGBY UNION: Northampton and
England hooker Dylan Hartley has been
banned for two weeks after being cited
for foul play during the 25-6 Heineken
Cup defeat to Ulster last week. The
Saints captain was reported for striking
Rory Best and will now miss tomorrows
return trip to Ulster along with
Northamptons Aviva Premiership clash
with Harlequins next Saturday.
Former rugby star, 25, found dead
n RUGBY UNION: Former Sale Sharks
player David Tait was found dead in
Hong Kong on Wednesday, after falling
from an apartment block. The 25-year-
old worked as a corporate finance
manager for KPMG after retiring from
rugby in 2010 due to persistent injuries.
Tait had represented England at Under-
20 level.
FOOTBALL
COMMENT
FRANK DALLERES
Nicklas Bendtner was fined 80,000 for revealing underwear with a betting logo on
27
SPORT
cityam.com
FRIDAY 14 DECEMBER 2012
LONDON Wasps have got one foot
in the quarter-finals of the Amlin
Cup after riding a second-half
fightback to beat French side
Bayonne 30-16 at Adams Park.
The Pool Three leaders opened
up a 14-0 lead thanks to strong
kicking from Jones and a superb
Wasps stave off Bayonne rally
to tighten stranglehold on pool
try from youngster Elliot Daly on
the half hour, who would have
impressed watching England head
coach Stuart Lancaster. Daly added
a penalty kick from his own half
before Bayonne responded on the
stroke of half-time with Joe
Rokocokos converted try.
Bayonne reduced the deficit to
20-16 but Wasps replied with a
fine late solo try from Italian
centre Andrea Masi.
Brought to you by Amlin, proud
sponsors of European Rugby, in their
fourth season as title partner of the Amlin
Challenge Cup and premium Partner of
the Heineken Cup.
REIGNING Tour de France champion
Bradley Wiggins insists he will try to
defend his title despite Team Skys
initial plans to have Chris Froome
spearhead their 2013 challenge.
Wiggins became Britains first
ever winner of the Tour in July but
the 2013 route favours team mate
Froomes climbing abilities.
Im probably going to try and
win a second Tour de France, maybe
well have two leaders, said
Wiggins. How thats going to work
with the team I dont know. Its just
how we service both mouths.
Wiggo warns
of yellow aim
BY ALEX SHARP
MANCHESTER United star Rio
Ferdinand led a scathing attack on
European football chiefs last night
after they fined Serbia just 65,000
for racism less than Denmarks
Nicklas Bendtner was charged for
wearing inappropriate underwear.
Governing body Uefa imposed the
fine as part of a range of punish-
ments relating to Octobers stormy
Under-21 clash between Serbia and
England in Krusevac, in which visit-
ing players were subjected to racist
abuse from the terraces and ended in
a melee among players and staff.
It is 15,000 less than that levied
on Arsenal striker Bendtner for
revealing the waistband of his under-
pants, which featured the name of a
prominent bookmaker, after he
scored for Denmark during the
European Championship in June.
Uefa are not serious at all on
racism, former England defender
Ferdinand wrote on Twitter.
Fines do not work at all. They
have zero impact on
federations/clubs/fans/players. Uefa
need to talk to this generation.....they
dont seem to be up to date on this
issue?? Harsh punishments needed
Rio slams Uefa
over 65k race
fine for Serbia
as a deterrent.
Ferdinands brother Anton, who
plays for Queens Park Rangers and
was found by the Football Association
to have been racially abused by
Chelsea captain John Terry last sea-
son, joined in the criticism.
He wrote on Twitter: Wow Uefa
aint serious with there [sic] punish-
ment... So showin a sponsor is worst
[sic] than racism and fighting!
FA general secretary Alex Horne
condemned the leniency of Uefas
punishments, and its decision to sus-
pend Tottenham defender Steven
Caulker and Blackpools Tom Ince for
their involvement in the post-match
fighting.
We are disappointed with the
sanctions levied by Uefa with regards
to the racist behaviour displayed
towards Englands players, said
Horne, who said the FA planned to
appeal Caulker and Inces bans. We
are surprised to see that two of our
players have been given suspensions.
Uefa also banned two members of
Serbias coaching staff from football
for two years and handed a quartet of
Serbia players suspensions from two
to four games, as well as ruling that
Serbias next Under-21 match be
played behind closed doors.
Results
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T
HE DECAYING of Arsene
Wengers Arsenal from a team
capable of going a whole league
season unbeaten to one with
just 24 points from 16 games and
slain by League Two Bradford in the
Capital One Cup has spawned
countless theories as to where it has
all gone wrong.
Among those voiced by fans and
bloggers (such as Arseblog) and
made more pertinent by the
prospect of more than 50m
waiting to be spent in January is
the concern that the Frenchman
may have lost his fabled golden
touch in the transfer market.
Certainly recent acquisitions
Gervinho, Marouane Chamakh,
Park Chu-Young and Sebastien
Squillaci have been nothing short of
disastrous, while Andrey Arshavin
and Andre Santos have hardly
impressed, making the question a
legitimate one for discussion.
MYTH
It seems a far cry from Wengers
plucking of Patrick Vieira from
relative obscurity in 1996, the year
when he recruited Thierry Henry,
Nwankwo Kanu and Davor Suker
(1999), or even the triple signing of
Robert Pires, Lauren and Sylvain
Wiltord (2000).
But those notable successes
overshadowed less fruitful deals.
When Henry arrived, so did Kaba
Diawara, Stefan Malz and Oleg
Luzhny. The signing of Pires
coincided with that of Igor
Stepanovs and Tomas Danilevicius
two of Wengers worst, although
there is fierce competition.
Luring Sol Campbell from
Tottenham in 2001 may have been
as big a masterstroke as it was an
audacious coup, but that summer
Arsenal also spent big on Francis
Jeffers and Richard Wright, both
expensive flops, while Giovanni van
Bronckhorst and Edu were only
qualified triumphs.
PROMINENT
Poring over Wengers 80-odd
significant buys suggests his record
has always been patchy, like that of
nearly all managers, and the notion
of him as transfer mystic something
of a myth.
What has changed over his 16-
year tenure is that a dwindling
supply of funds has restricted him
to fewer and fewer purchases,
making the mistakes more obvious
and far more costly. Stars such as
Cesc Fabregas, Robin van Persie and
Henry being lured away, rather
than jealously retained like Vieira,
has compounded the problem.
Jeffers, who cost 8m but scored
just eight goals in 39 games over
two seasons, did not wreak undue
damage because Henry, Vieira and
Co were good enough to win the
Double without him playing a
prominent role.
By contrast, the signings of
Chamakh (free but 50,000-a-week
wages; 14 goals in 67 games) and
Gervinho (10m; nine in 55), for
example, look far worse because
major departures have required
them to perform more significant
roles and they have failed
miserably.
Frank Dalleres is sports editor of City
A.M. Twitter: @frankdalleres
LONDON WASPS .....................30
BAYONNE .................................16
BY ALEX SHARP
AMLIN CHALLENGE CUP
BY FRANK DALLERES
CHELSEA manager Rafael Benitez
has warned his squad they must
improve their mentality and take
their chances or risk losing the Club
World Cup final against Corinthians
of Brazil on Sunday.
The jet-lagged Blues defeated
Mexican side Monterrey 3-1 yesterday
thanks to a smart Juan Mata finish, a
deflected Fernando Torres effort and
Darvin Chavezs own goal.
However Benitez was frustrated
his side failed to keep a clean sheet
and wasted several clear chances,
fearing a repeat could cost the
European champions in the final.
Im not very happy with the goal
we conceded. We won but still these
little things can make a difference in
a final, for example, said Benitez.
When I talk about a winning
mentality, I talk about little details
making the difference, you have to
take your chances.
The team has to think about
winning, winning in style and not
conceding because the goalkeeper
likes clean sheets. They have to keep
their concentration right to the end
of the 90 minutes.
Striker Torres has scored in three
successive matches for the first time
at the club, which has coincided
with three wins in a row for
Benitezs side.
Hes a bit sharper, has more
confidence and the teams playing
well, added Benitez. Its a run, and
thats good for him and good for us.
We havent done too much
differently. Weve analysed his
movement and fitness, but its not
been a massive difference.
Benitez won the tournament in
2010 with Inter Milan but is taking
nothing for granted in a final
Chelsea are expected to win.
You can never be confident when
you play a final, anything can
happen, said Benitez. We have a
good team and some experience, but
we need to win against any team.
Blues must be
more ruthless,
insists Benitez
BILLIONAIRE Arsenal shareholder
Alisher Usmanov has reignited the
battle for the club with under-fire
owner Stan Kroenke by lining up
Gunners hero Thierry Henry for a
return in a key boardroom role.
Usmanov wants record goalscorer
Henry to return to Emirates Stadium
and take up an off-field role similar
to that of former team-mate Patrick
Vieira, who is football development
executive at Manchester City.
The Russian tycoon, who is worth
an estimated 11.2bn and controls
29.9 per cent of Arsenal stock, dis-
cussed his plans with Henry, now of
New York Red Bulls, over dinner in
Moscow on Monday, according to
reports in France.
Henry should already be a mem-
ber of the club but not as a player
there is another, more important
role to play, Usmanov said.
Take the example of Vieira at
Manchester City he is also a sym-
bol, but helps a rival club. This must
be avoided with Henry.
Kroenke, who owns 66.8 per cent
of the club, saw off Usmanov to com-
plete a 731m takeover in April last
year and has repeatedly refused his
rival a seat on the board.
The American, worth an estimated
2.5bn, is thought keen to keep
Arsenal, but has come in for fierce
criticism from fans and former direc-
tors, including honorary vice-presi-
dent Lady Nina Bracewell-Smith.
Usmanovs best hope of a buyout
would appear to be getting fans to
back his plans for change Henrys
endorsement would be a major boost
and hoping disgruntled supporters
persuade Kroenke to sell.
Henry, who is expected to return to
Arsenal on loan for a third playing
stint in January, is represented by
Darren Dein, the son of ex-Arsenal
vice-chairman David Dein, who
helped Usmanov buy into the club
after his own acrimonious exit.
The presence of a champion can
radically change the soul of a team,
he added. This is what Henry has
demonstrated last year by returning
to Arsenal. But I think a comeback
succeeds only once. Thats why the
decision to return belongs to Thierry.
Bracewell-Smith, who sold her 16.8
per cent to Kroenke, joined criticism
of him yesterday, after Arsenals worst
start to a Premier League season was
compounded by Tuesdays Capital
One Cup loss at lowly Bradford.
Disappointed would be an under-
statement! Shows he cares very little,
she wrote on Twitter. If making
money was the motivating factor,
surely there are better ways. Football
is a business of passion and SK
[Kroenke] has no passion for AFC.
Pietersen tips England seamers
to help score historic series win
BATSMAN Kevin Pietersen believes
Englands seam bowlers hold the
key to securing their first Test
series win in India since 1985.
Spinners Graeme Swann and
Monty Panesar had hogged the
limelight to help England recover
from defeat in the first Test to take
a 2-1 overall lead going into the
final match in Nagpur.
But Pietersen out yesterday for
73 on day one of the fourth Test, as
the tourists closed on 199-5
believes the challenge posed by an
unpredictable pitch can finally
bring the best out of James
Anderson and Tim Bresnan and
help end Englands dismal record in
south Asia.
I think we are in a position of
strength having two seamers, said
the Surrey man. [India seamer]
Ishant [Sharma], I found incredibly
difficult to play. Scoring was
incredibly hard, especially against
Ishant so we hope Bressie
[Bresnan] and Jimmy can do us a
really good job.
Its the toughest wicket Ive
played Test cricket on in terms of
trying to play strokes.
Cook bidding to become the
first England skipper to win in
India since David Gower 27 years
ago won the toss and elected to
bat, but his team stumbled to 16-2
as Sharma took the Essex mans
scalp for one, plus the wicket of
fellow opener Nick Compton (3).
Jonathan Trott steadied the ship
with 44, before Pietersens virtuoso
knock saw him pass a career
milestone 15,000 first class runs.
Usmanov wants Henry to fill a role similar to Patrick Vieiras at Manchester City
FORMER world No1 golfer Tiger
Woods has thrown his weight
behind the appointment of Tom
Watson as Americas Ryder Cup
captain for 2014 and played down
talk of tension between the pair.
Watson openly criticised Woods
two years ago for his behaviour on
and off the course. But, following
yesterdays announcement that the
63-year-old will lead the US at
Gleneagles, 14-time Major winner
Woods gave Watson his backing.
I think hes a really good
choice, said Woods. Tom knows
what it takes to win and thats our
No claws out for Tom as Tiger
gives full support to US skipper
ultimate goal. I hope I have the
privilege of joining him on the 2014
United States team.
Watson, who skippered America
to Ryder Cup success in 1993, will
become the oldest ever captain, at
65, by the time his players tee off in
Scotland.
And old rival Bernard Gallacher,
non-playing captain of the defeated
Europeans 19 years ago, feels the
appointment can help Woods, who
has not won a Major since 2008,
recapture his best form.
Tom has the best chance of
getting Tiger to fulfil his potential,
said Gallacher. There are few in
the game he respects more.
BY ALEX SHARP
BY FRANK DALLERES
AND JULIAN HARRIS
BY JOSHUA RICHARDS
BY JOSHUA RICHARDS
FRIDAY 14 DECEMBER 2012
28
SPORT
cityam.com/sport
Uefa are not serious
at all on racism

@cityam_sport
Usmanov bids
to bring Henry
back to Arsenal
in director role
Ferdinand blasts European chiefs after they fine Serbia
less than Bendtner for pants stunt: Page 27
HAS WENGER LOST IT? Page 27

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