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Date: 14 July 2012
Time: 10.15 15.30
Voters gave no strong mandate, but gave the New Democracy, led by Antonis Samaras (centre), and Pasok parties enough seats to form a government
GREEK politicians looked set to
form a pro-bailout government
with a very narrow majority last
night, after a close run election
gave no party a sizeable lead.
The backing for the bailout pro-
gramme could lead the Eurozone
to give additional aid to the coun-
try, as the parties in line to form a
coalition have shown commit-
ment to austerity and economic
reforms.
Pro-bailout conservatives New
Democracy came top with 29.5 per
cent of the vote, according to offi-
cial projections last night, while
anti-bailout radical leftists Syriza
came in second with 27.1 per cent.
Pasok, the socialist former ruling
party, came third on 12.3 per cent.
It also supports the bailout.
That means New Democracy
receives the additional 50 seat
bonus given to the top party, allow-
ing it to pair up with Pasok to take
161 seats in the 300-strong parlia-
ment. Syriza, meanwhile, takes
approximately 75 seats in Greeces
second election within six weeks.
New Democracy leader Antonis
Samaras called yesterday for a sal-
vation government to continue
with the bailout programme and
bring the country back to pros-
perity.
The International Monetary
Fund, one of the three bodies
responsible for Greeces bailout,
said it will stand ready to engage
with the new government to
restore financial stability.
The Eurogroup of finance minis-
ters said the election should
allow for the formation of a gov-
ernment that will carry the sup-
port of the electorate to bring
Greece back on a path of sustain-
able growth.
The euro jumped to a one-month
high against the dollar after the
results of the vote were published.
Pasok leader and former finance
minister Evangelos Venizelos also
called for a coalition with the top
three parties taking part.
But Syrizas Alexis Tsipras said he
intends to stay in opposition, and will
not join a pro-bailout grouping.
German foreign minister Guido
Westerwelle signalled that Greece
could gain some concessions from the
troika on the painful bailout pro-
gramme, though nothing like the full-
scale renegotiation sought by Syriza.
There cant be substantial changes
to the agreements but I can imagine
that we would talk about the time
axes once again, Westerwelle said last
night. But there is no way out of the
reforms. Greece must stick to what
has been agreed.
Germanys Chancellor Angela
Merkel called Samaras to congratulate
him last night, but said she expected
Greece to meet its obligations.
SEBs chief economist Robert
Bergqvist told City A.M. the results
could mean cheaper emergency loans
for the state. This means the govern-
ment is likely to receive the next
tranche of its bailout next month, so it
will not run out of money, he said.
The government will have to contin-
ue with austerity measures, but it is
probably going to benefit from some
kind of renegotiation on interest rates
and the maturities on the debt.
FTSE 100 5,478.81 +11.76 DOW 12,767.17 +115.26 NASDAQ2,872.80 +36.47 /$ 1.57 +0.02 / 1.24 +0.01 /$ 1.26 unc
EUROZONE: Page 2, 3, 5 and 16

BUSINESS WITH PERSONALITY
LONDON2012
days to go WHY THE BANKS PLANS FOR GROWTH WONT WORK
See The Forum, Page 20
39
www.cityam.com FREE ISSUE 1,654 MONDAY 18 JUNE 2012
Certified Distribution
30/04/12 till 27/05/12 is 132,076
BY TIM WALLACE
EURO SAFE FOR NOWAS
GREECE BACKS BAILOUT
EXPECTED VOTE SHARE
AND PARLIAMENT SEATS
NEW DEMOCRACY 29.5% 128
SYRIZA 27.1% 72
PASOK 12.3% 33
INDEPENDENTGREEKS 7.6% 20
GOLDEN DAWN 7% 18
DEMOCRATIC LEFT 6.2% 17
KKE 4.5% 12
OUR EIGHT-PAGE GUIDE TO THE SQUARE MILES VERY OWN FESTIVAL
CELEBRATE THE CITY
See Pages 27-34
*official projections
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
IN BRIEF
Markets welcome Greek result
nThe Nikkei opened sharply higher this
morning as traders welcomed the Greek
election result. The Japanese stock
index jumped 1.7 per cent after opening,
in the global markets first response to
the Greeks handing the most seats in
parliament to the pro-bailout New
Democracy party. And the price of gold
fell for the first time in seven sessions,
dipping one per cent as the result in
Athens reduced the safe haven metals
appeal. Golds fall came even as the
euro hit a one-month high against the
US dollar, which would normally
support gold prices. Markets elsewhere
are expected to follow suit, with Dow
Jones futures last night pointing to an
85 point rise in todays trading.
Egyptian Islamists claim slim lead
nEgypts Islamists claimed a narrow
lead early today in vote-counting for
the presidential election but the
generals who have run the country since
the overthrow of Hosni Mubarak issued
new rules that made clear real power
remains with the army. A decree from
the ruling military council, published as
the count got under way yesterday,
spelled out only limited powers for the
new head of state and reclaimed for
itself the lawmaking prerogatives held
by the Islamist-led parliament which
the Supreme Council of the Armed
Forces (SCAF) dissolved last week. The
Muslim Brotherhood, vowing to reject
the moves, said its candidate Mohamed
Morsy led former general Ahmed Shafik,
Mubaraks last prime minister, by 51 to
49 per cent, with votes in from a quarter
of electoral districts.
Eurozone debt dominates
agenda at G20 meeting
WORLD leaders at the G20 summit
in Mexico will be breathing a sigh of
relief today after the pro-bailout
New Democracy party claimed victo-
ry in the Greek election.
The threat of the vote going to the
Syriza party, which opposes austeri-
ty measures and could have forced a
Greek exit from the euro, has been
hanging over the summit.
But as the two-day conference in
Los Cabos gets underway, Eurozone
debt pressures are still set to domi-
nate the agenda.
The world is facing some very dif-
ficult times, economically and
financially, socially and politically,
said Charles Dallara, managing
director of the Instititute of
International Finance. We need
once again a global coordinated
approach.
Leaders from the 20 industrialised
and developing nations, represent-
ing more than 80 per cent of world
economic output, are expected to
pledge to stimulate growth while
balancing those efforts against steps
to rein in budget deficits.
But there is still pessimism that
politicians, after spending more
than $1 trillion (636.23bn) to stim-
ulate growth on top of $6 trillion
in central bank money printing the
past four years can offer policies to
Scrap free current accounts, says
departing RBS retail head
Regulators and polititicans should
forcibly bring an end to popular free
current accounts, the outgoing head of
retail at Royal Bank of Scotland said in a
parting shot to the industry. In
comments that put him at odds with
other senior banking executives, Brian
Hartzer, who left RBS on Friday to take
up a post in Australia, said regulatory
intervention might be helpful in forcing
banks to the table.
Heathrow banks on software to
reduce delays
BAA, Heathrows operator is seeking to
get back on the frontfoot following this
springs immigration queues fiasco by
installing a computer software system
that should reduce delays to arriving and
departing flights.
Wind farm alert
Ed Davey, energy secretary, has warned
Conservative colleagues not to play fast
and loose with investors in Britains
onshore wind farms, as a cabinet row
looms over subsidy levels.
Drugs boss gets good feeling about
treatment for gout
An experimental drug for gout that
AstraZeneca is acquiring could reap sales
of nearly $25bn, according to bullish
forecasts circulated by the pills American
developer. The second-largest British
pharmaceuticals company expects
completion this week of a $1.26bn
(800m) buyout of Ardea Biosciences, a
San Diego-based company that is tackling
the inflammatory disease often suffered
by older men.
Secret EU summit document shows
first step to banking union
A classified draft of next weeks EU
summit conclusions is the first step on an
emerging roadmap to a banking union,
pooling debt via eurobonds and political
union via EU treaty change over the next
10 years. Most of the text, the annexed
Compact for Growth and Jobs, are deals
on project bonds and other small scale EU
initiatives that Francois Hollande is
trumpeting as a 120bn (76bn) growth
pact.
Hyundai heavy wins orders for oil
and gas rigs
Hyundai Heavy Industries, the worlds
largest shipbuilder, said yesterday it has
won three orders valued at a combined
$600m to build oil and gas rigs.
Bollor set to join Vivendi board
Vincent Bollor, a French industrialist
known for financial flair and tough
takeovers, intends to accept a seat on
Vivendis board in the fall, sources say.
WHAT THE OTHER PAPERS SAY THIS MORNING
STRONG sales growth and rising
profits have boosted business
confidence in London, a new study
shows today, with the situation set
to improve further over the next 12
months.
Average turnover rose 4.5 per
cent and profits by 5.2 per cent,
pushing the ICAEW/Grant
Thornton confidence index to 13.3,
a 26.5 point jump on the quarter.
Firms anticipate turnover will
grow by 5.1 per cent in the next 12
months, with profits rising 4.9 per
cent and sales volumes 4.5 per cent.
The export outlook is also strong,
with 4.1 per cent growth forecast.
However, that optimism is only
feeding through slowly into hiring
employment rose 0.1 per cent in
the year to the second quarter, and
salaries increased by 0.7 per cent,
well below inflation and the lowest
rise since the first quarter of 2011.
The government needs to
harness businesses increasing
optimism about Londons
economic future and turn it into
sustainable, consistent growth,
said Ian Strange from the ICAEW.
Of particular concern are the
subdued employment growth
expectations. Businesses anticipate
an average 1.4 per cent increase in
headcount over the coming 12
months, well below levels seen
before the financial crisis.
London bucks
the gloom as
firms expand
Syriza supporters, seen waving flags at a rally, could scupper G20 support for Greece
2
ECONOMIC CRISIS
BY TIM WALLACE
BY JENNY FORSYTH
To contact the newsdesk email news@cityam.com
I
T was the kind of giant kicking
sound that always warms the
financial markets hearts. And no,
I wasnt referring to football, but
to Greeces nail-biting election finish,
which saw the euro granted a stay of
execution. Pro-bailout parties eked
out a small victory, avoiding an
immediate and explosive Eurozone
crisis, albeit at the cost of kicking the
Greek debt can further down the
road. And so Europes extended
Groundhog Year continues.
The currency, equity and credit mar-
kets will rejoice this morning and
the bounce will almost certainly be
greater and longer-lasting than the
damp squib that followed Spains
flawed bailout but Greece and the
Eurozone are hardly out of the woods.
The choice always was either a near-
immediate Grexit and default had
the anti-bailout far-left Syriza party
EDITORS
LETTER
ALLISTER HEATH
Greece jumps out of the fire and straight into the frying pan
MONDAY 18 JUNE 2012
and other fellow-travellers won or a
slow, drawn out disaster if the main-
stream parties were to win. We are
now about to begin this latter sce-
nario. A Grexit has been delayed, not
prevented; time has been bought to
allow other Eurozone basket cases,
such as Spain and Italy, to implode at
their own paces, without the process
being accelerated by Greece.
The centre-right New Democracy
will probably go into some sort of
coalition with Pasok, its socialist rival,
and have just enough MPs to govern.
To reward the Greeks for having voted
the right way, we will see plenty of
warm words from the EU and (most
likely) some minor concessions on the
bailout agreement. These changes are
unlikely to have much of an effect,
however; Greece will remain unable
to reform itself, improve its adminis-
trative structures, deregulate its econ-
omy, raise enough revenues or cut
spending sufficiently. All the main
parties campaigned on a deluded, dis-
honest set of promises that they will
never be able to keep to.
Even on the most optimistic set of
projections, the Greek economy will
remain crippled by an unsustainable
national debt which even under
utopian economic conditions would
guarantee stagnation; in the real
world, given the rate at which GDP
has been shrinking, this debt will
nomically illiterate, ex-communist 37-
year old leader, has taken Syriza from
4.6 per cent of the vote in 2009 to 27.1
per cent today. And if Syriza falls
back, the danger is that the fascist
Golden Dawn party will gain even
more seats next time.
Yesterdays election was billed as
one of the defining moments of mod-
ern European history. But far from
representing some sort of turning
point, it will probably be entirely for-
gotten within a year, not even regis-
tering as a footnote in the story of the
Eurozones slow demise.
Greece is set to face Germany in the
next round of Euro 2012. The game
will be riveting but one thing is for
sure: it wont be the last bust-up
between the two countries this year.
never be brought under control and
tens of billions more will have to be
written off. Greeces budget deficit
remains too high and its unit labour
costs still need to fall by 30-40 per cent
if it is to become competitive again;
but given that there is no appetite to
slash wages by that much, unemploy-
ment will continue to rise. Given all
of this, and despite the extreme short-
term pain, a managed Grexit and
debt write-off would be the least disas-
trous solution for all concerned, the
long-suffering Greek public as well as
the global economy. International
economic authorities werent ready
to cope with such a scenario yester-
day; they had better be better pre-
pared when the New Democracy-led
government fails, as it inevitably will,
and the next elections are called.
Syriza is already waiting in the
wings. Alexis Tsipras, the partys eco-
restore confidence.
Central bankers are poised to fight
market turbulence with emergency
cash injections.
France circulated a proposal saying
it wants the European Union to agree
before the end of 2012 on growth-
boosting measures worth 120bn
made up of some 55bn of unused EU
structural development funds, 4.5 bn
in project bonds for infrastructure
projects and 60bn in capital to be
raised by the EIB if it were given an
extra 10bn in financing.
And political differences over the
future shape of Europe, a US Congress
bitterly divided over fiscal policy and a
leadership change in China, not to
mention political turmoil in Egypt
and violence in Syria, all cast a trou-
bling shadow over the meeting.
US President Barack Obama set to
meet Vladimir Putin for the first time
since the Russian President regained
power reportedly wants to press
Europe to resolve its debt crisis, but
does not expect much progress until
the European Union holds its 28-29
June leaders summit.
CNBC COMMENT: Page 16

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FRANCOIS Hollandes Socialist party
won an absolute majority in Frances
parliament yesterday, giving a boost
to the President as he presses
Germany to support debt-laden
Eurozone states hit by austerity
measures.
The Socialists won between 296 and
321 seats in yesterdays parliamen-
tary election runoff, according to
projections, giving him a comfort-
able majority to steer policies
through the lower chamber.
The left-wing triumph means
Hollande, elected in May, wont need
to rely on the environmentalist
Greens, projected to win 20 seats, or
the Communist-dominated Left
Front, set for just 10 deputies, to
pass laws. The centre-left already
controls the upper house of par-
liament, the Senate.
Its a much bigger
majority than expect-
ed, said political ana-
lyst Mariette Sineau
at the CEVIPOF insti-
tute. It can only
Hollandes left
clinches victory
in French vote
BY HARRY BANKS
reinforce Hollandes position interna-
tionally rather than having a weak
majority and being hostage to the
Greens and Left Front.
But the biggest upset of the night
was the victory of three anti-immi-
grant National Front candidates,
including Marion Marechal-Le Pen,
the blonde granddaughter of party
founder Jean-Marie Le Pen.
Hollande supporter and Prime
Minister Jean-Marc Ayrault, who held
his seat in parliament yesterday, said
the government would throw its
energy into bolstering public
finances, stimulating
growth and bringing
down unemployment, in
the Eurozone as well as
France.
The goal is to shift
Europe towards growth
and protect the euro zone
from speculation. The task
before us is immense, he
said yesterday.
All eyes will be on Antonis Samaras as he attempts to cement coalition support
Hollandes Socialist party has
won control of parliament
PROFILE: ANTONIS SAMARAS
MONDAY 18 JUNE 2012
3
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Q
How strong is the
pro-bailout vote?
A
New Democracy
got close to 30 per
cent of the vote,
followed by anti-bailout Syriza on 27
per cent. It may not sound like a big
victory, but the winning party gets a
bonus of 50 seats in parliament to
give them an advantage in forming a
ruling coalition. It is that bonus
which should give New Democracy a
slender majority if it forms a
coalition with Pasok, a former ruling
party that got more than 12 per cent
of the vote.
Q
What does that mean for government
finances?
A
The government needs the EUs
bailout cash, otherwise it will run
out of money in mid-July. If this
coalition is formed successfully, it
will receive the cash. Indeed, the
conditions might be easier than first
thought Germanys finance
minister said the government may
be charged a lower interest rate.
Q
Does the mean the crisis is over?
A
Not at all. This was a major hurdle
and Greece will now not leave the
euro for now, at least. However, the
alternative may be just as bad the
country has to press on with tough
economic reforms and government
spending cuts, in the middle of a
very deep recession and with youth
unemployment at over 50 per cent.
Q
A
and
What will happen
in Greece now?
THE man who appears to hold Greeces
future in his hands this morning is an
experienced economist with more than
35 years of experience at the forefront of
Greek politics.
Leader of the New Democracy party
since 2009, Samaras began his political
career as an MP for the south western
Messenia region in 1977.
A hawkish Conservative whose pre-
election promises included stopping the
invasion of illegal immigrants", Samaras
served as minister of both finance and of
foreign affairs in the Greek parliament in
the early 1990s. He then spent 10 years in
exile from the party breaking off and
forming his own rival faction after
internal disagreements in the wake of
the Yugoslavias break-up saw New
Democracy fall from power in 1993. He
rejoined the party in 2004 and won back
his seat in parliament three years later,
this time rising quickly to the top via a
stint as minister of culture.
All eyes will be on Samaras over the next
few days as he attempts to form a
government for the second time in as
many months, having failed in early May
to secure enough support.
Hell have to endure tough negotiations
in the coming days, but will be happy to
be short of one: former Prime Minister
George Papandreou, his classmate at
Amherst College but political rival since.
ECONOMIC CRISIS
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cent who believe it was a mistake.
Even though our panel of City
workers was not convinced of the
wisdom of such bailouts, they still
expect the Eurozone to stump up
for more such rescue packages in
the coming months and years.
Cyprus is the firm favourite to
ask European authorities
for a bailout next,
with a whopping
52.5 per cent of
respondents
picking the tiny
republic as the
likeliest
candidate for
financial help.
Italy
GREECES election has pulled its
smaller neighbour Cyprus back from
the precipice for now according
to experts.
Not Armageddon just yet.
Armageddon put off for another
day, said Fiona Mullen, a Nicosia-
based economist for the
consultancy firm Sapienta, who
estimates Cyprus would need 10bn
or more if Greece were pushed out
of the euro.
I was worried last week that
Cyprus had left it too late to go to
the European stability mechanism
to cover itself not only for a bank
bailout but for a Greek exit. It seems
to have got a bit lucky.
Cyprus, a small country with just
a million people but a big offshore
financial industry, still faces a
European bank regulator deadline
in just two weeks to find 1.8bn
around a 10th of its GDP to bail
out its second largest lender.
Stelios Platis, who runs a
financial consultancy in Cyprus,
said the result would buy Nicosia
time, but not necessarily much,
given its exposure to Greek banks.
Greek election
buys time for
smaller Cyprus
BY HARRY BANKS
G
E
T
T
Y
SPAINS banks might need further
help from the European Central Bank
(ECB) after underestimating their loss-
es, a top minister said yesterday.
Deputy economy minister Inigo
Mendez de Vigo told a Spanish news-
paper that the extra liquidity injec-
tion from the ECB would help, just
days after the IMF said the sector
needed a 40bn (32.2bn) recapitalisa-
tion.
Meanwhile Prime Minister Mariano
Rajoy said he will not adopt all of the
International Monetary Funds rec-
ommendations for the country, refus-
ing to raise VAT or cut public sector
salaries.
Instead he made a plea for Eurozone
nations to send a message to the mar-
kets by pushing for ever closer union.
Europe has to transmit to the world
Spanish banks
may need ECB
liquidity help
BY TIM WALLACE
that the euro is an irreversible proj-
ect, he told members of his conserva-
tive Partido Popular party.
A week earlier he unveiled a plan to
ease the crisis by arranging a bank
bailout of up to 100bn, but investors
were unconvinced and 10-year borrow-
ing costs brushed the psychologically
important seven per cent level on
Friday.
Spanish 10-years bond yields rose dangerously high
Apr May Jun
6.0%
5.5%
6.5%
7.0%
6.874%
Our panellists are
sceptical that Spanish PM
Mariano Rajoy can
rescue the countrys
ailing banking sector
EUROPEAN leaders dealing with
the sovereign debt crisis have done
too little, too late, outgoing World
Bank chief Robert Zoellick said
yesterday, warning that Europe
risks losing influence and
developing nations now face
increasing market uncertainty.
European politicians always act
a day late and promise one euro
too little. Then, when it gets tight,
they add new liquidity, Zoellick
World Bank chief Zoellick says
Europe doing too little too late
BY CITY A.M. REPORTER told Germanys Der Spiegel.
While that bought time, it did
little to address the Eurozones
structural problems, Zoellick said.
Its no longer so much about
which model the Europeans
choose. They should just decide on
one. Quickly.
"If Europe continues to falter, it
will lose global influence.
European leaders must be aware of
that, Zoellick said, adding that
Germany should take a leadership
role and keep pushing for reforms.
Robert Zoellick will step down as head of the World Bank on 1 July
MONDAY 18 JUNE 2012
5
EUROZONE CRISIS
cityam.com
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jobs website
for London
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C
I
T
Y
A
M
C
A
R
E
E
R
S
.
c
o
m
Do you think 100bn will be enough to turn the
Spanish banking system around?
%
banking system
7.6
83.9
7.
83 9
8.5
Yes
No
Dont know
O
UR PANEL of City
professionals has given a
resounding thumbs down to
Europes bailout of Spanish
banks, with fewer than one in ten
believing the rescue will work.
Our Voice of The City panel, run
with PoliticsHome, showed that
close to 84 per cent of respondents
think the 100bn bank bailout
plan announced last week will not
be enough to turn around Spains
beleaguered banking system.
And less than half of the panel
think the EU was right to provide
Spain with the loan to prop up
its banks.
Almost 47.9 per cent think it
made the correct decision by
offering the Spanish
government up to 100bn to
feed into countrys
financial sector, slightly
lower than the 48.3 per
Europes plan to rescue Spanish banks will be
an expensive mistake, our City panel warns
VOICE OF THE CITY
PoliticsHome.com PoliticsHome.com
In association with
Apply to join today at WWW.CITYAM.COM/PANEL
BY HARRY BANKS
Do you think the EU was right to provide Spain with
the 100bn bailout loan?
%
47.9
48.3
e 100bn bailo
3.8
Yes
No
Dont know
came next, with slightly over one in four
panellists singling out Mario Montis
government as next in line for a handout,
followed by Portugal, picked by one in six of
our panellists.
G
E
T
T
Y
CREDIT Suisse has no plans to issue
new shares after the Swiss central
bank called on it to improve its capital
base, chief executive Brady Dougan
was quoted as saying yesterday.
Of course I am disappointed.
FINMA has given us directions as to
how we should strengthen capital. We
are fulfilling those, said Dougan.
Even more surprising were the sug-
gestions by the SNB to cut the divi-
dend and to raise capital.
In its annual financial stability
report published last Thursday, the
SNB said Credit Suisse should urgent-
ly boost its loss-absorbing capital base
by cutting risk, suspending dividends
or issuing shares, sending the stock
down 10 per cent.
While it is the SNBs job is to guard
the stability of the Swiss financial sys-
tem, the Finma regulator polices the
banks and has not demanded any
immediate action from Credit Suisse.
Dougan rejected the idea of a capital
hike: That is not our plan, he told
the SonntagsZeitung paper.
He said the SNBs calculations of
Credit Suisses capital were incom-
plete and based on a very pessimistic
scenario for the Eurozone debt crisis,
adding the report had shaken the con-
fidence of clients and investors: That
is not just bad for us but for the whole
Credit Suisse
boss: no need
for new shares
BY HARRY BANKS
financial centre.
Dougan said SNB Chairman Thomas
Jordan had not discussed the need for
Credit Suisse to cut its dividend and
raise capital when the two men met
for lunch just 10 days ago.
The SNB calculated that Credit
Suisse had a Tier 1 capital ratio of 5.9
per cent at the end of March, com-
pared with 7.5 per cent for rival UBS,
as calculated under global Basel III
rules that demand banks reach 10.5
per cent by 2019.
The criticism from the SNB has also
increased pressure on Dougan, who
was lauded for navigating the bank
through the subprime crisis relatively
unscathed but has come under fire of
late for squandering that advantage.
Credit Suisse responded last week by
noting it exceeded current Swiss capi-
tal requirements and was working
towards meeting stricter rules by 2019.
INSURANCE FIRM Markel today
confirmed it has become the first
tenant to sign up to Land Securities
and Canary Wharfs iconic City
skyscraper, the Walkie-Talkie.
Markel said it will take up 51,000
square feet on two upper floors of
the 690,000 sq ft tower, relocating
from its current head offices at 49
Leadenhall Street. It will pay around
65 per sq ft for a 20-year term.
The Walkie-Talkie at 20 Fenchurch
Street is one of four skyscrapers
BY KASMIRA JEFFORD currently being built in the City, and
developers expect it will capture
demand from a wave of lease
expiries due from 2013.
The deal marks a considerable
coup for Land Securities in what has
been a lacklustre lettings market,
buoyed so far this year by a wave of
insurers looking for new City offices.
The 37-storey is skyscraper is due
to be completed in 2014 and Markel
Brady Dougan met with SNB chairman Thomas Jordan 10 days ago
Credit Suisse Group AG
15Jun 11 Jun 12Jun 13Jun 14Jun
18.0
18.5
17.0
17.5
19.0
19.5
20.0
20.5 CHF
17.70
15Jun
Construction on the tower began in
January 2011 and is due to finish in 2014
LONDON businesses that tested
alternative working arrangements
last month in preparation for this
summers Olympic Games suffered
problems with technology and
travel arrangements, a survey
showed.
A stress test in which more
than 100 companies asked staff to
experiment with remote working
Trial run of Olympics working
routines highlights problems
BY CITY A.M. REPORTER
or changes to their journeys failed
to dispel concerns about how
smoothly the capital will function
during the Games, which run from
27 July to 12 August.
Nearly 80 per cent of the
companies that took part said they
were confident they could cope
with the impact of the Games,
Deloitte said. But it noted firms
that diligently joined the test were
likely to be the best prepared.
MONDAY 18 JUNE 2012
6
NEWS
cityam.com
Insurance firm Markel is first
tenant for the Walkie-Talkie
expects to move
later that year.
Insurer Kiln
group is poised
to become the
second tenant.
0
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ACTION
CHAISE END SOFA
HALF PRICE
1499
AFTER EVENT PRICE
2998
31.22
A MONTH
NO DEPOSIT
NO INTEREST
EVER
half price
ends Sunday
THE UKs shareholder spring could
this week give way to a sizzling share-
holder summer, as newly emboldened
investors keep up the pressure on
company boards.
The biggest potential for fireworks
this week comes on Thursday when
the board of struggling Heritage Oil
faces investors, disappointed at the
two-thirds reduction in the companys
value over the past 18 months.
In the lead up to the AGM, share-
holder advocacy groups have been agi-
tating, with the Association of British
Insurers (ABI) objecting to the two-year
notice period of exec directors, while
Pirc has queried the wisdom of award-
ing director bonuses after a $67m loss
in the latest financial year.
In a statement unlikely to cheer
investors, Heritage defended the pay-
ment on the grounds of the compa-
nys excellent health and safety
record. Nearly one-fifth of investors
voted against the remuneration
report at last years AGM.
British Airways owner IAG has also
incurred the wrath of shareholder
BY LAURIE LAIRD
advocacy groups ahead of its AGM on
Wednesday. The ABI has objected to a
2.8m lump sum to be paid to chair-
man Antonio Vazquez Romero on his
retirement, a deviation from standard
UK practice. Pirc has questioned the
companys failure to ask directors to
stand for re-election at the AGM, the
first since the completion of the merg-
er of BA and Iberia.
Pirc has also advised investors to vote
against the pay report at UK Coals
AGM on Friday, questioning recent
increases in bonus limits. In April, UK
Coal reported its first profit in four
years, but still faces pensions liabilities
far in excess of market capitalisation.
ADVISERS HKEXS TAKEOVER OF THE LME
CAROLINE SILVER
MOELIS & COMPANY
Regulatory hurdles are the next
challenge in HKEx bid for LME
HAVING secured a
recommendation from the board
of the London Metal Exchange
(LME) for its 1.4bn takeover last
Friday, Hong Kong Exchanges &
Clearing (HKEx) will now be
shifting its focus to winning
approval for the deal from
regulators.
Though the deal is subject to
shareholder approval with a vote
for major investors including JP
Morgan and Goldman Sachs
BY ELIZABETH FOURNIER expected before the end of next
month it must then also clear the
desk of the UKs Financial Services
Authority.
Though HKExs chief executive
Charles Li has vowed to maintain
the traditions of the 135-year-old
LME, the only open outcry trading
floor left in the City, until at least
2015.
But more pressing on the FSAs
agenda will be a potential threat to
the LMEs corporate governance,
with the watchdog keen to ensure
it can maintain its high standard
of domestic supervision of the
exchange once control passes to its
new owners.
Recent cross border
consolidation attempts among
exchanges have been dogged by
regulatory problems, most recently
when the European Commission
blocked NYSE Euronexts sale to
Deutsche Boerse earlier this year.
And last year the Australian
government blocked Singapores
planned takeover of the ASX over
fears it threatened national
interests.
International Consolidated Airlines Group
13Jun 14Jun 15Jun 11 Jun 12Jun
155.00
152.50
150.00
147.50
145.00
142.50
140.00
p
147.40
15Jun
MONDAY 18 JUNE 2012
8
NEWS
cityam.com
How the shareholder spring developed (and where it might go next)
12 APRIL
30%
of investors at
Smith & Nephew
fail to back
remuneration
1 MAY
36.5%
do not support
Xstratas
executive
pay deal
27 APRIL
31.5%
of shareholders of
Barclays fail to
back remuneration
10 MAY
67%
vote against car
dealer Pendragons
remuneration report
14 MAY
47%
fail to support
media group UBMs
remuneration policy
3 MAY
54%do not back Aviva pay deal
37% do not back UBS pay deal
Sly Bailey of Trinity
Mirror quits toavoid
shareholder revolt
8 MAY
donotbackWilliamHill paydeal
Avivas
AndrewMoss
steps down
49.9%
22 MAY
9%
vote against Shells
pay package up from
2%a year before
22 JUNE
UK Coal
21 JUNE
Heritage Oil
20 JUNE
British Airways owner IAG
29 MAY
22.9%
of shareholders at Lonrho
rejected the rms
executive pay plans
30 MAY
63%
of Centamin voters were
against the miners
remuneration report
16 MAY
26%
vote against oil
group Tullows
pay deal
17%
voteagainst888s
executivepay
17 MAY
67%
do not back
oil group Cairns
pay deal
32%
donotback
Cooksonpaydeal
33%
donotback
Prudential paydeal
40% donotbackInmarsatpaydeal
13 JUNE
of WPP shareholders vote against
chief executive Martin Sorrells
13mpay award
59.5%
Investor wrath
moves to IAG
and Heritage
MOELIS & Company is acting as
financial adviser to LME Holdings on
HKExs recommended takeover bid
for the exchange, with managing
director Caroline Silver on the team
alongside executive director Holger
Vieten.
Silvers most high profile deal in
recent years was advising GLG on its
takeover by Man Group in 2010, but
she has plenty of experience advising
stock exchanges on cross border
transactions, having been the main
adviser to Euronext on its tie-up with
NYSE, and helping Norse exchange
OMX on its sales to Borse Dubai
during her 14 years at Morgan
Stanley.
Rothschilds Stephen Fox and
Philippe Le Baque are acting as
financial advisers to HKEx, along
with Matt Chamberlain from UBS.
For legal advice, LME turned to magic
circle firm Freshfields Bruckhaus
Deringer, which fielded an M&A team
led by partner Sundeep Kapila, as
well as financial services head
Michael Raffan and lawyers from the
tax and employments teams.
It is also working with Jones Day
partner Frances Murphy on
competition aspects of the
transactions.
Allen & Overy, led by corporate
partner Alistair Asher, is acting as
legal adviser to HKEx.
BRITAIN will order the first reactor for
a new generation of nuclear-armed
submarines this week as part of a
1bn contract with Rolls-Royce, a
defence ministry source said yester-
day, in a move that could spark a fresh
dispute within the coalition govern-
ment over the Trident programme.
The deal, including an 11-year refit
of the UKs sole submarine propulsion
reactor factory at Derby in central
England, would protect 300 Rolls-
Royce jobs and many others at suppli-
ers elsewhere, the source said.
Defence secretary Philip Hammond
confirmed the plan in an interview
with the BBC yesterday.
The government is split over plans
to replace, at an estimated cost of
around 25bn, Britains four nuclear
Vanguard submarines when they
retire from service in the 2020s.
The Conservatives want a new fleet
of submarines that will continue to
carry the Vanguards Trident missiles
and maintain Britains independent
nuclear capability.
But the Liberal Democrats are push-
ing for cheaper and less destructive
alternatives, arguing that the current
capability the ability to obliterate
Coalition starts
a 1bn move to
update Trident
BY HARRY BANKS
Moscow is an outdated hangover
from the Cold War.
The two parties have postponed a
final decision till 2016, after the next
parliamentary elections, while agree-
ing in the meantime to fund advance
work to allow the submarines to be
built on time if the go-ahead is given.
The government said last year it
expected to spend 3bn by 2015 on
preparatory work for the new subma-
rine fleet. The deal to be announced
today also includes a contract to build
the reactor for the last of seven Astute
class nuclear-powered attack sub-
marines.
Last month Hammond announced
350m of contracts, mainly with con-
tractor BAE Systems, to design the
Vanguard successor submarines.
Rolls-Royce Holding PLC
845
840
835
830
825
820
815
p
822.00
15Jun
THE OWNERS of German chemical
company Evonik are set to scrap
plans for what could have been
Europes biggest initial public
offering in more than a year, four
people familiar with the matter
said yesterday.
A string of share flotations
across the globe have been blown
off course by the volatility of
RAG set to scrap Evonik float
again as market turmoil bites
financial markets in recent
months, arising from fears the
Eurozone debt crisis will drag
down economic growth.
The sources said the RAG
Foundation was likely to cancel the
Evonik IPO today, which would be
the second time it has pulled plans
for a flotation. RAG said last year it
was preparing an Evonik IPO but
put the plans on ice in September
due to market weakness.
9
NEWS
cityam.com
THE WAIT is over. Vodafone will today
find out whether its 38p per share
offer for Cable & Wireless Worldwide
is attractive enough to win over the
telcos stakeholders.
The deal will this morning be put to
CWWs shareholders, two months
after Vodafone unveiled the 1.04bn
offer that would make it the UKs sec-
ond largest telecoms company by
domestic revenues behind BT.
But the telco giants quest for owner-
ship of CWW has been tainted by the
shaking head of its would-be sub-
sidiarys biggest shareholder.
Orbis, which owns 19 per cent of
CWW, has hinted that it might vote
against the bid, claiming that 38p per
share undermines the value inherent
in the 84 year old company.
The fund manager, which said it will
not decide how to vote until shortly
before the meeting, has previously
indicated it would be willing to
remain a minority shareholder in a
Vodafone-owned CWW.
But in statement issued on Friday,
Vodafone reiterated that it will not
switch to a contractual takeover,
adding, unless the scheme is
Crunch time as
Vodafone faces
the CWW vote
BY LAUREN DAVIDSON
approved at the CWW shareholder
meeting, the offer will lapse.
The terms of the deal which
Vodafone said at the time of the offer
were final stipulate that in order for
the bidder to gain total control of the
company, 75 per cent of CWWs share-
holders must vote in favour.
Orbis could be angling for a repeat of
Canons 2010 takeover of Oc, when
Orbis remained a minority sharehold-
er before selling out to the camera
giant almost two years later for a sum
understood to be much higher. But it
seems unlikely Vodafone will stand for
such antics.
CWWs shares closed on Friday at
35p an increase of 75 per cent since
Vodafones interest came to light.
Everything Everywhere faces a
takeover bid from its ex-chief
EVERYTHING Everywhere is the
target of a private equity takeover
bid fronted by its former chief
executive Tom Alexander.
Private equity firms KKR and Apax
are understood to have put forward
a collective 3bn to buy the British
telecoms company a hybrid of
Orange and T-Mobile, the UK brands
of France Telecom and Deutsche
Telekom respectively but this
figure falls far short of the total
asking price.
Analysts have pegged a value of
BY LAUREN DAVIDSON
around 9bn or 10bn on the mobile
network, but a sale is expected to set
the buyers back around 8bn once
future investments and upgrade
plans are factored in.
Tom Alexander, who resigned as
boss of Everything Everywhere last
summer citing personal reasons, is
understood to have been building
the cash squad for several months
unsuccessfully at first.
Although Alexanders plans have
now gained traction, with a few
investment banks pitching in,
industry experts have expressed
doubt that the bid will succeed,
pointing at the timing of the bid, the
complexity of the number of
funding sources involved and the
amount each will have to cough up.
But sources say Everything
Everywhere, which has 27m
customers, is open to a sale. Previous
rumours have claimed Deutsche
Telekom is looking to pull out of the
UK hybrid, while France Telecom
only last week hinted at potential
plans to take the business public.
KKR,which bought Alliance Boots
in 2007 for 11bn, and Apax, which
recently bought Oranges Swiss arm
for 1.3bn, declined to comment. Tom Alexander resigned from the company last summer to spend time with his family
Cable & Wireless Worldwide PLC
15Jun 11 Jun 12Jun 13Jun 14Jun
34.8
35.0
35.2
35.4
35.6
35.8 p 35.03
15Jun
FACEBOOK has agreed to pay
$10m (6.4m) to charity to settle a
lawsuit that accused the site of
violating users rights to control
the use of their own names,
photographs and likenesses,
according to court documents
made public over the weekend.
The lawsuit, brought by five
Facebook members, alleged the
social networking site violated
California law by publicising
users likes of certain advertisers
on its Sponsored Stories feature
without paying them or giving
them a way to opt out, the
documents said.
Facebook agrees to pay a $10m
settlement after users file suit
A Sponsored Story is an
advertisement that appears on a
members Facebook page and
generally consists of another
friends name, profile picture and
an assertion that the person
likes the advertiser.
The settlement was reached last
month but made public this
weekend. Facebook declined to
comment on Saturday.
The proposed class-action
lawsuit, filed in federal court in
San Jose, California, could have
included nearly one of every three
Americans, with billions of dollars
in damages, according to previous
court documents.
MONDAY 18 JUNE 2012
10
NEWS
cityam.com
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G
E
T
T
Y
LUKE Johnson, the entrepreneur
behind Italian restaurants Strada and
Pizza Express, is set to buy struggling
dental care chain James Hull.
A source close to the deal told City
A.M. that Johnson, chair of private
equity firm Risk Capital Partners, is
in advanced talks with the high-
end dentistry firm over a takeover.
The recession has not been kind
to James Hull, which has seen its
debts rack up as fewer peo-
ple choose to spend on cos-
metic dental procedures.
The deal, thought to be
worth around $10m
(6.4m), would not be
the first dental practice
in Johnsons portfolio.
The Oxford medicine
graduate founded
Intergrated Dental
Holdings in 1996 and
sold it ten years later for
over 100m after grow-
ing it to become the
Luke Johnson
sinks his teeth
into new deal
BY LAUREN DAVIDSON
largest UK chain of dental surgeries.
But the dental deal could be seen
as an ironic addition to Johnsons
current portfolio, which is largely
full of food-based firms.
The former Pizza Express chair-
man, who multiplied the Italian
high street chains value more
than twentyfold, also founded
Signature Restaurants owner
of The Ivy and Le Caprice and
is currently chairman and part
owner of Baker and Spice,
Giraffe and Patisserie Valerie.
Johnson, former chair-
man of Channel 4, is also
a prominent contributor
to severeal arts groups.
James Hull was found-
ed in 1987 by its epony-
mous former boss who
was forced to resign in
2009 after an investor
row over his expenses.
Microsoft remains coy ahead of
expected launch of new tablet
MICROSOFT is widely expected to
unveil a tablet device today after
inviting media to a major
announcement.
The tech giant refused to give
further details, except to say: you
will not want to miss it.
The secretive invitation is
possibly an attempt to emulate
Apple-style excitement around the
launch of a new product. Sources
close to the matter have said
Microsoft is intending to take on its
BY LAUREN DAVIDSON
more successful hardware rivals by
releasing its own tablet.
The announcement would not
come as a huge surprise, as Microsoft
has already unveiled its new tablet-
friendly Windows RT operating
system a version of the soon-to-be
released Windows 8 which is
compatible with the ARM chips
found in most mobile devices.
Microsoft has more traditionally
worked with Intel, the processor
typically used to power computers.
While Microsofts strength lies in
software Windows is by far the
most prevalent computer operating
system this would not be
Microsofts first foray into hardware.
The Xbox games console stands as
a credible rival to the PlayStation
and the Wii, created respectively by
hardware experts Sony and
Nintendo.
However, Microsofts portable
music player venture, dubbed Zune,
was a flop. After discontinuing
production of the range last year, the
company announced the death of
the brand name earlier this month.
Other speculation has pointed
towards an unveiling today of Xbox
Music, the replacement for Zune.
The former Marks & Spencer boss is making a return to the British high street
Luke Johnson: a man who
is not afraid of the dentist
SIR STUART ROSE has become
chairman of the fast-growing
discount fashion chain Blue Inc,
taking up his first major
corporate role since leaving
retailer Marks & Spencer 18
months ago.
Rose takes the role after
investing a small amount of his
own money in Blue Inc last year,
following a larger investment
from the billionaire Reuben
brothers.
Since leaving the top role at
M&S last January, Rose has also
taken an advisory role at private
equity group Bridgepoint and
Stuart Rose takes the chair of
discount fashion store Blue Inc
BY KASMIRA JEFFORD
invested in online firm The Hut.
He is also a non-executive of
South African food and clothing
retailer Woolworths.
Blue Incs chief executive
Steve Cohens private vehicle
Marlow Retail bought the
menswear chain in 2006 from
the Levy Family, who founded
the business in 1912.
The chain traded as Mr Byrite
until 1999, when it was
rebranded as Blue Inc to attract
a younger audience.
The business, which has 191
stores and employs 2,000 staff, is
on track for sales excluding VAT
of 80m and earnings of 5.5m
this year.
MONDAY 18 JUNE 2012
11
NEWS
cityam.com
*Conditions apply. See education.gov.uk/teacconditions for full details.
SO MUCH for a relaxing weekend.
That was the last thing on offer for
the team of 17 Nomura employees
who set off last Thursday to spend
three days cycling 450km from
London to Paris to raise money for the
Rainbow Trust.
Leaving Nomuras London head-
quarters at One Angel Lane, the
intrepid cyclists were warmly wel-
comed on Saturday afternoon at a
reception at the Eiffel Tower, which
was organised by the Japanese firms
Paris office as part of its 40th anniver-
sary celebration.
A Paris adventure for City cycling teams
If Parisian hospitality at the end was-
nt quite enough to take the teams
minds off burning thighs and saddle
sores, then the knowledge that theyve
raised more than 36,000 so far for the
Rainbow Trust, which provides emo-
tional and practical support to fami-
lies who have a child with a life
threatening or terminal illness,
should certainly help.
Not to be outdone, this week will see
another London to Paris cycle chal-
lenge get underway, heading from
London to Paris via Dover and Amiens.
Stockbroking firm Killik & Co is
Nomuras team (above) made 36,000 cycling to Pariss famous Eiffel Tower (below)
Got A Story? Email
thecapitalist@cityam.com
12
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THECAPITALIST
WHAT goes together better than
a City location, steak, and fast
cars?
Nothing, according to Italian supercar
maker Lamborghini, which will be
parading a retrospective of its finest
luxury vehicles outside Gaucho
Broadgate behind Liverpool Street
Station this week.
Classic models from the 1960s to the
present day will be on show from
Wednesday this week, before moving
south of the river on Friday to take up
residence outside Gaucho Tower Bridge.
To celebrate the pop-up
exhibition, champagne receptions will
be held outside the chain of steak
MONDAY 18 JUNE 2012
sending its well-prepared team to mas-
ter a 550km route to raise money for
the War Child.
Mike Savage, Fred Robinson, Dan
Dowding, Jan Wood and Jer OMahony
have left nothing to chance during
training for the event, spinning
throughout the winter and attending
warm weather camps in Lanzarote.
OMahony in particular should find
the task ahead a breeze, having com-
pleted the gruelling Marathon des
Sables (six marathons run across in
the Sahara desert over six days) in
preparation for the event.
Lamborghinis supercars
will be on show at Gaucho
restaurants, while well-fed speedfreaks
browse models including the 350GT, first
produced in 1964, right up to the
Aventador LP700-4, a 700-horsepower
behemoth unveiled at last years Geneva
Motor Show. Enthusiasts will also
recognise the iconic Diablo
famously thrown out of a
plane at the end of
Bond film Die
Another Day.
All the cars
on show
have been
specially
flown in
from the
Lamborghini museum in Bologna, and
are making their way around London
this week also making appearances at
Duke of York Square in Chelsea and at
Marble Arch.
UK savers are facing losses of 18bn
per year thanks to ultra-low interest
rates and above-target inflation,
according to new research out today
from UHY Hacker Young.
The Bank of Englands 0.5 per cent
base rate and 325bn of quantitative
easing is in part to blame, the
accountancy firm said, while a lack
of competition among high street
banks has made the problem worse.
Savers lose out
from low rates
BY LISA MORAVEC
G
E
T
T
Y
INCREASING numbers of small busi-
nesses are being refused credit by
banks, a new industry study showed
today, damaging prospects for eco-
nomic growth and jobs.
Although over 50 per cent of small
firms want to grow their firms over
the next year, 41 per cent of
those who applied for
credit were turned down
in the second quarter,
the Federation of Small
Businesses (FSB) found.
The proportion looking
to grow rapidly
shrank from 10.9
per cent in the
first quarter to
7.2 per cent
this quarter,
with one in
five now say-
ing access to
finance is
the main bar-
rier to growth
plans.
Already a net bal-
ance of 3.9 per
Jump in demand and
pay for accountants
BY TIM WALLACE
cent of firms are announcing layoffs,
and the FSB thinks this will get worse.
The will of small businesses to grow
is there but the money to enable them
to do so is not, said FSB chairman
John Walker.
Unless this is addressed effectively
and rapidly, that confidence might
evaporate altogether, with dire conse-
quences for the economy.
The business group praised the
funding for lending scheme
announced by the chancellor and gov-
ernor of the Bank of England last
week, which aims to see an 80bn
increase in lending to firms and
households, facilitated by the
Bank taking risky debt from
banks in exchange for govern-
ment bonds.
It called for a clear report-
ing process so that tangible
evidence is given to show
the money is being passed
on to small firms and not
just shoring up the banks.
SME growth stopped
by new credit crunch
DEMAND for finance and
accountancy workers increased
last month, a recruitment
industry study shows today,
starting to reverse the downward
trend of the past year.
The sector also received a boost
as the majority of accountants
received pay rises in the last year,
a separate study showed, with
many also receiving a bonus.
Vacancies in finance and
accountancy were up two per
cent in May, making it the only
sector to record growth in
demand for permanent workers
according to the association of
professional staffing companies
(APSCo).
Demand for some specialist
accountancy skills, particularly in
London, is holding up quite well,
said John Nurthen from Staffing
Industry Analysts.
To a significant degree this is
being driven by the regulatory
BY TIM WALLACE
Most accountants received pay rises in the last year
0% 10% 20% 30% 40% 50% 60% 70% 80%
Recovery/Insolvency
Transaction Services
FundManagement
Financial Analysts
Audit/Assurance
Accounts General
Compliance
Tax
Consultancy
The FSB praised Mervyn Kings
planned 80bn lending boost
PROPERTY prices in London and
the south west have reached a
fresh high, Rightmove data
showed this morning.
Average house prices across the
UK rose by one per cent to
246,235 from May to June, while
Londons prices rose 1.7 per cent
to an average of 477,440.
In comparison to August 2007,
national prices are up 2.4 per cent
but in real terms, after inflation
Capitals houses beat inflation
while rest of the UK struggles
BY LISA MORAVEC has been taken into account, they
are down 13 per cent.
Greater London is the only area
where prices have outpaced
inflation, registering a real-term
rise of three per cent over the
same period.
The better properties in the
better areas remain in short
supply, giving sellers of sought-
after stock, and their agents, the
confidence to come to market at a
higher price, said Rightmoves
Miles Shipside.
BUILDING firms are more than twice
as likely to go into liquidation as
those in other sectors, according to
Graydon UKs insolvency predictor
for this quarter.
Construction firms are being hit
hard as many long term capital
expenditure projects, particularly
those funded by the government, are
coming to an end, said Graydon
UKs Gordon Skaljak.
Building firms
going under
BY TIM WALLACE
THE FORUM: Page 20

High demand and constrained supply is pushing Londons house prices to record highs
MONDAY 18 JUNE 2012
13
NEWS
cityam.com
THEFORUM
cityam.com/forum

JOIN THE DEBATE PAGES 20-21
The level of competition for
those with expertise in this area
means its very likely the 2012
bonus will be higher, meaning
theres currently huge scope for
anyone with the right skills to
significantly boost their earnings,
said Marks Sattins Shaila Verma.
However the backdrop is still a
gloomy one despite the up-tick in
demand the number of finance and
accountancy job opportunities is
still down 20 per cent on the year as
the Eurozone crisis hit finance
workers hard.
environment. Where employers
can, they are still trying to
squeeze additional capacity out
of existing staff rather than
commit to new hires.
That demand has also been
reflected in pay the majority
of accountants have received
salary rises in the past year,
driven by improved business in
the insolvency and
restructuring industry
according to recruiter Marks
Sattin.
Figures out today show 75 per
cent of accountants specialising
in the sector saw salary rises,
followed by 73 per cent of
transactional specialists and 70
per cent of financial analyst.
Furthermore, 60 per cent of
recovery and insolvency
practitioners and 63 per cent of
transactional specialists
received bonuses, which
averaged 15 per cent of their
salaries growth which is set to
continue into next year.
DANIEL TUBBS, former co-head of
BlackRocks global emerging
markets team, has been hired by
Swiss asset manager Mirabaud, the
company revealed today.
Tubbs, who left BlackRock in
March, will join Mirabauds London
office where he will manage a long-
only Ucits-registered investment
fund focussing on emerging market
equities.
An Exeter University graduate and
a qualified chartered accountant,
Tubbs spent six years with German
asset management firm WestLB as a
fund manager, eventually heading
its Asian emerging markets team
before joining BlackRock in 2007.
Mirabauds chief investment
officer said Tubbs Asian equities
experience and passion for stock
picking will fit perfectly in
Mirabauds equity culture.
The asset manager forms part of
the larger Geneva-based banking
group Mirabaud & Cie, which also
runs a private banking arm and a
corporate broking division focussed
primarily on natural resources.
Tubbs said Mirabauds
entrepreneurial spirit attracted
him to the firm: Its potential,
coupled with the desire to build up a
market-leading team and products,
also convinced me to take on this
new challenge, and I am proud to be
joining the company.
Ex-BlackRock
co-head Tubbs
joins Mirabaud
BY KASMIRA JEFFORD
R
E
U
T
E
R
S
PATRICK Claridge has relinquished
the reins of Merchant Securities,
the financial services firm he has
led since 2006, it emerged yester-
day.
Claridge vacated his office on
Thursday, he told City A.M. last
night, insisting that his departure
was on friendly terms and was
always part of the plan, following
Sanlamss buyout of Merchant
last February.
Sanlam, the South African
investment conglomerate,
aims to compete with fellow
South African transplants Old
Mutual and Investec, by consoli-
dating its operations in the
UK investment compa-
nies Nucleus and
P r i n c i p a l
I n v e s t m e n t
Management.
It make sense
for them to inte-
grate their UK
o p e r a t i o ns ,
Claridge added.
Merchant Secs
chief Claridge
leaves the firm
BY LAURIE LAIRD
Claridge, the former head of the
London operations of E*Trade, was
circumspect about his future plans,
other than decreasing his handicap
on the golf course. Im quite keen
to explore something else, but the
market environment is tough right
now, he said.
Daniel Kriel, chief executive of
Sanlam Private Investments, will
relocate from Cape Town to London
to lead Merchant Securities for the
next three months until a per-
manent replacement is iden-
tified.
Claridge has yet to
unload the shares he
retained after the Sanlam
buyout, but said yesterday
he was planning to to sell
off his stake shortly.
Following the buyout
Merchant Securities retained
25 per cent of the shares, of
which Claridge was the
largest shareholder.
Patrick Claridge has no
immediate plans
following his departure
BRITAINS first cable car spanning
the Thames is set to open to the
public in time for the Olympic
games, Transport for London
confirmed today.
The 50m project has been
subject to safety tests in recent
weeks but TfL said it was on course
to open on 28 June, a month ahead
of the Games.
Emirates Airline is sponsoring
the Alpine-like cars, which will be
able to carry 2,500 people an hour
between two Olympic venues, the
02 in Greenwich and the ExCel
centre at the Royal Docks.
East London cable car due for
launch by the end of the month
BY KASMIRA JEFFORD
This spectacular new addition
to Londons skyline will provide a
much needed new river crossing in
the east of our great city, London
mayor Boris Johnson said today.
It will open up access to jobs in
the Royal Docks enterprise zone
and attract businesses and
investors to a previously under
exploited area.
Passengers will be able to use
their Oyster cards to make the
journey, with a single fare using
Oyster pay as you go costing 3.20
or 1.60 for a child, TfL said.
A non-stop return journey to
take in the skyscraper views will set
sightseers back 6.40 on Oyster.
MONDAY 18 JUNE 2012
14
NEWS
cityam.com
The Emirates Air Line will make its inaugural journey on 28 June
G
E
T
T
Y

/

R
E
U
T
E
R
S
CARPHONE Warehouse founder
Charles Dunstone was the sole busi-
ness leader awarded a knighthood in
the Queens birthday honours for
2012, announced over the weekend,
in a year that saw industry and eco-
nomic leaders garner just 12 per cent
of accolades, down more than a full
percentage point from 2011.
However, Sir John Parker, chairman
of mining giant Anglo American,
added a few initials to his existing
knighthood, acceding to Knight
Grand Cross (GBE), the highest hon-
our bestowed on a civilian.
Despite a tough year for the UK high
street, retail bosses were also well rep-
resented on the honours list. Lucy
Neville-Rolfe, deputy chair of the
British Retail Consortium and corpo-
rate affairs director at Tesco, became a
dame, while creative director at
Mulberry, Emma Hill, earned a CBE.
The co-founder of Coffee Republic,
Business world
wins praise in
the honours list
BY LAURIE LAIRD
Sahar Hashemi, rounded out the list
of businesswomen honoured.
Despite a few high profile names
making the cut, City veterans were
rather sparsely represented on the
2012 list. Keith Hamill, chairman of
broker Tullett Prebon and former
finance director of WH Smith gained
an OBE and Brian Winterflood, head
of the eponymous securities firm,
earned an MBE. Stuart Fraser, outgo-
ing policy chief for the City of London,
was awarded a CBE for services to the
Square Mile, and ex-Deloitte senior
partner and FSA non-exec Brian
Pomeroy was knighted.
In the industrial sector, Dr Peter
Bonfield, chief executive of engineer-
ing group BRE, earned an OBE.
Representing the media industry,
Welshman Ron Jones, whose produc-
tion company Tinopolis accounts for a
significant portion of UK television
programming, including the BBCs
Question Time, earned a CBE, as did
Warner Bros UK head Josh Berger.
Mulberrys Emma Hill was named a CBE, while the FSAs Brian Pomeroy has been knighted, while Anglo chair Sir John Parker was made a GBE. Warner Bros UK head Josh Berger earned his CBE, and Brian Winterflood became an MBE
KNIGHTED:
CHARLES DUNSTONE
MONDAY 18 JUNE 2012
15
NEWS
cityam.com
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your rst pair. Extra Options available at an additional charge on both pairs. Excludes safety eyewear. SKU 25283945. 2012 Specsavers. All rights reserved.
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KNIGHTED:
LUCY NEVILLE-ROLFE
THE words Arise, Sir Charlie may fall awk-
wardly on the ears of an entrepreneur nearly
as well known for his man of the people man-
agement style as for his astounding personal
wealth(estimatedat approximately830m).
Through his 11 years as chief executive of the
worlds largest independent communications
retailer Carphone Warehouse, Dunstone put in
his fair share of shifts on the shop oor.
He may have started CPW from his London
at, on seed money of just 6,000, but the
yacht-loving Dunstone isnt quite a rags-to-
riches story. His father was an executive at BP,
who sent the budding entrepreneur to the
independent Uppingham School. Dunstone
later abandonedabusiness degreecourseat
Liverpool University.
Since taking over the chair
of CPW in 2010, Dunstone
has immersed himself in
charity work, sitting on
the council of the Princes
Trust.
His own chari-
table trust
supports a
Lancashire
academy.
As Tesco negotiates the unfamiliar world of
falling sales gures, the retailing giant
can scarcely afford to lose one of its safest
hands at the tiller. Yet Lucy Neville-
Rolfe, group legal and corporate affairs
director, will leave the board early next year
when she reaches the retirement age of 60.
A former civil servant, Dame Lucy (as she
will now be known) used her political nous
to steer Tesco successfully
through three separate Competition
Commission inquiries. A prodigy of former
chief executive Sir Terry Leahy, she shares
his work ethic and desire to engage in
every level of Tescos business. Also like
Leahy, she has publicly criticised the British
education system for producing poorly-
skilled and ill-disciplined school leavers.
What greater com-
pliment to Dame
Lucy than Tescos
acknowledge-
ment that her role
will be split into
two when she
leaves the
rm in
2013?
IN BRIEF
Wealth funds interested in Snam
n Italian oil and gas major Eni has
received expressions of interest from
sovereign funds for a 22.5 per cent stake
in Snam that it must sell to exit
investment in the gas grid operator, an
Eni source said yesterday. Several
sovereign funds have expressed a
preliminary interest that Eni will
evaluate, the source said.
Low-paid lose benefits during strikes
n Workers who go on strike will forfeit
benefits that top up their wages, work and
pensions secretary Iain Duncan Smith said
yesterday. Employees can claim benefits
such as working tax credits if their income
falls below 13,000, even if this drop is
caused by strikes. Striking is a choice, and
in future benefit claimants will have to pay
the price for that choice, the minister said.
MONDAY 18 JUNE 2012
16
NEWS
cityam.com
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N
EW Democracy may have
eked out a victory in Greece
last night, but that wont
make Europes crippling
solvency problems go away. It pays
to take a look at history: Greece was
the very first country to default on
its debt in recorded history, going
back to 377BC. Moreover, since its
independence in 1829, Greece has
spent around half its time in
default on its sovereign debt. The
UK technically hasnt defaulted
since 1066 (though some debt was
voluntarily renegotiated in the
1930s), France hasnt defaulted
since 1812, but guess which country
holds the record for defaulting the
most times? Spain.
Spain defaulted on its debt six
times in the 18th century, and seven
times in the 19th century.
It made it through the 20th centu-
ry without reneging on its debts,
and hasnt defaulted in the 21st cen-
tury (yet).
ALL EYES ON THE G20
This week should be interesting,
regardless of the coalition negotia-
tions in Greece. In the aftermath of
Fitch and Moodys downgrading
Spain, Mexico will host a summit of
G20 leaders today and tomorrow. It
will almost certainly be dominated
by the Eurozone debt crisis.
We should find out how Spain
plans to use the up-to-100bn
(80.4bn) that finance ministers
have agreed to lend to shore up its
banks. Whichever route they take,
the sooner Spanish leaders commu-
nicate their intentions the better,
after borrowing costs hit a record
high last week, and European
Central Bank (ECB) data showed
Spanish banks borrowed a new
record of around 325bn in May.
PORTUGUESE BORROWING HITS HIGH
But its not just Spain going to the
ECB Portuguese borrowing in May
also hit a record high of almost
59bn showing that the interbank
lending market remains sticky for
peripheral Europe.
When looking at banks across
Europe, Standard & Poors states
that of the 50 largest rated
European banks, 27 currently have
negative outlooks or negative credit
watch placements, reflecting their
view of the difficult environment
across the region.
WILL THE FED TWIST AGAIN?
This week also sees the US Federal
Reserve meeting on 19-20 June. The
key question is whether the Fed will
indicate another round of
Operation Twist (swapping short
duration bonds for longer duration
bonds), or whether it might show a
willingness to support the market
by directly buying bonds.
Most market participants now
expect Fed and ECB stimulus before
the summer is over.
Gary Baker, head of European equi-
ties strategy at Bank of America
Merrill Lynch, says his latest
research shows 73 per cent of
respondents now expect more quan-
titative easing from the ECB over the
next four months, up from 46 per
cent who expected new cash injec-
tions when they were surveyed in
May. Expectations of more QE from
the Fed also rose, with a net 44 per
cent of respondents expecting fur-
ther action compared with 31 per
cent in June. Greece may have
backed a pro-bailout party but the
fun is just about to begin.
Louisa Bojesen is a CNBC anchor. Follow
her on Twitter @louisabojesen
CNBC
COMMENT
LOUISA BOJESEN
It is not all just about Greece as the G20 meets in Mexico
THERE WAS growing speculation
over the weekend that Royal Dutch
Shell will raise its offer for energy
explorer Cove, after the firm extend-
ed its bid deadline for the second
time.
Shell said last week that sharehold-
ers in Aim-listed Cove now have until
27 June to accept its 1.12bn or 220p
per share offer, but the firm is report-
edly working towards an improved
offer to compete with rival energy
firm PTT, which tabled a 240p bid.
Cove shareholders will have the
chance to press the board on its pre-
ferred bidder at the companys annu-
al meeting on Wednesday.
Coves shares remained above both
offer prices at 264p on Friday, with
less than five per cent of sharehold-
ers giving their blessing to Shells
advances. The shares have remained
firmly above Shells initial offer price
since its interest was revealed on 21
May.
And analysts are expecting a sub-
Shell looks into
improved offer
for Cove Energy
BY HARRY BANKS
stantial price bump from Shells
counter-offer, which is expected with-
in the next couple of weeks.
I think Shell will come back,
Investec analyst Stuart Joyner said
last week. They could possibly pay up
to 300p per share, possibly more,
given the recent discovery.
Much of Coves value comes from its
stake in a lucrative gas discovery off
Mozambique.
Morgan Stanley is acting as finan-
cial adviser for Shell, while Cove is
taking advice from Standard
Chartered and Cenkos Securities.
CVC cuts Formula One
stake in $500m deal
US ASSET management company
Waddell & Reed increased its stake in
the Formula One motor racing
business to 20.9 per cent from
around 14.4 per cent over the
weekend, in a $500m (318.07m) deal
after the motor racing business put
flotation plans on hold.
Private equity firm CVC, since
2006 the largest shareholder in
Formula One, has now cut its stake
to around 35 per cent from 63 per
cent in deals in recent months.
The deals have helped ease
pressure on CVC to list Formula One.
The business put plans to float in
Singapore on hold two weeks ago
because of volatile markets.
Several funds managed by
Waddell & Reed Investment
Management Company and Ivy
Investment Management Company
have today agreed to invest a further
$500m in a private placement in
Formula One at $9.1bn enterprise
value, CVC said in a statement. The F1 Singapore float has been delayed
Cove Energy PLC
269
268
267
266
265
264
263
p
264.00
15Jun
INVESTORS in the worlds first
floating wind turbine are seeking
European Union funding to build
five more off the coast of Portugal
following the success of initial
testing of the device.
The wind power generator, which
cost 20m (16.2m), floats over deep
ocean waters, unlike previous
offshore wind farms built in shallow
waters and attached to the sea bed.
EDP and Seattle-based Principle
Power, partners in the project, said
the pilot produced 1.7 gigawatts of
energy per hour (GWh) on average
since its blades started turning six
months ago, enough to supply power
to 1,300 families.
The pilot sits six kilometres off the
coast of the windy town of Povoa do
Varzim, close to Porto in northern
Portugal.
It is 54 metres tall and weighs
1,200 tonnes, with a turbine from
Denmarks Vestas and backup from
Repsol and other local partners.
Construction of a bigger wind farm
park now awaits EU funding.
We have applied for a European
Commission funding scheme that
creates a tariff-like funding
mechanism when you produce
energy. It is provided through the
monetisation of carbon credits,
Weinstein said.
Floating wind
power project
seeks EU funds
MEMBERS of the Unite union will
this morning begin a 24-hour strike
over pay and pensions at Ford.
Up to 1,200 workers are expected
to walk out of the carmakers sites in
Dagenham, Bridgend, Halewood and
Southampton over wages and plans
Union plans walkout at Ford
MONDAY 18 JUNE 2012
17
NEWS
cityam.com
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IN ASSOCIATION with Repskan.com,
City A.M. is measuring the relative Olympic
media buzz around the London 2012 Olympic
and Paralympic Games partners, week by
week. The leaderboard, right, reflects their
ranking over the past week, in this case from
Wednesday 7 June to Wednesday 14 June.
The news that Samsungs Galaxy S3 users will
get a free app to watch the Olympics has
spread widely in traditional and social media.
The app enables users to subscribe to the
Eurosport channel for free during the Games,
and has gone down well with the gadget
community and consumers. In other news, a
recent announcement regarding Dow
Chemicals has stirred up another round of
anti-Dow sentiment, causing it to rocket 20
places in the rankings. Also, BMW has opened
its first electric car showroom, to tie in with its
Olympic program, and Coca-Colas new can
design is still going down well.
OLYMPIC MEDIA BUZZ
LONDON 2012 PARTNERS
Brand Position change
Visa 6
Samsung -1
McDonalds 18
Coca-Cola 11
BMW 3
BT 0
Omega 7
Adidas 3
BP -5
CIsco -5
TOP TEN PARTNERS BY MENTIONS
%
11
35
21
4
Blogs
Regionals
National News
Topicals
Twitter
Other
SAMSUNG
MENTIONS BY
CATEGORY
5
24
to close the companys final salary
scheme to new employees.
Ford remains willing and
available to continue discussions
with the union representing these
workers, the company said in a
statement. The vast majority of the
companys employees are not
involved in this disagreement.
MONDAY 18 JUNE 2012
18
Volatility in US
markets after
the Greek vote
I
N addition to backyard barbecues
and beer, this years Fathers Day
was likely to have seen many
investors with their minds on
Greece.
The Greek election the vote yester-
day that grabbed the attention of the
worlds financial markets is expect-
ed to create volatility in the new trad-
ing week, in particular, for US stocks,
according to analysts and investors.
Central banks from major
economies are ready to take steps to
calm financial markets should the
outcome of the Greek elections create
a market storm.
The rest of the week is not likely to
be any quieter. The Federal Reserve is
due to release a policy statement on
Wednesday at the end of its two-day
meeting, and the steady flow of sover-
eign debt warnings and downgrades
is likely to continue.
In yet another sign of investor nerv-
ousness, the CBOE Volatility index ,
Wall Streets fear gauge, was up for
much of Friday, even as stocks rose,
although the VIX finally closed lower.
Many investors have been trying to
prepare for the worst.
People have been hedging their
positions aggressively over the past
two weeks heading into this week-
end, said Alec Levine, a derivatives
strategist at Newedge Group SA in
New York.
Despite the fears, stocks ended last-
week on a positive note, marking a
second straight week of gains. The
benchmark Standard & Poors index is
now up 6.8 per cent for 2012. Part of
what has spurred optimism has been
the hope that the Fed and other cen-
tral banks would act to provide more
economic stimulus. There has been
continuing speculation over whether
the Fed will engage in a third round
of quantitative easing.
T
HE worlds leaders will be watching
the fallout from the Greek election
today from Mexico, at the two-day
G20 summit.
But despite the focus on the election
results this week plus Spains report
today on whether 100bn is enough to
solve its financial woes there is also a
busy calendar for UK business and eco-
nomics.
UK inflation figures for May will be
revealed tomorrow, along with a quarterly
trading update from Argos and Homebase
owner Home Retail Group. Figures are
expected to be disappointing, owing to
Aprils dismal weather, although analysts
hope Argoss TV sales will be up as Brits
prepare for a summer of sport.
Wednesdays news includes the Bank of
Englands MPC minutes, plus UK unem-
ployment figures and a US rates decision.
Kesa Electricals is also expected to give
its full-year results.
Thursdays reports include UK retail
sales, CBI Industrial Trends, Eurozone pur-
chasing managers index and the
Eurogroup meeting of finance ministers.
Heritage Oil looks set for a fiery AGM,
while Dixons will give full-year figures and
Go-Ahead Group will update on trading.
Busy week for UK businesses while
leaders focus on Eurozones future
Dixons Retail PLC
12.80
12.90
13.00
13.10
13.20 p
11Jun 15Jun 12Jun 13Jun 14Jun
12.99
15 Jun
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FTSE
5,540
5,480
5,520
5,500
5,440
5,460
5,420
5,478.81
15 Jun
Aquarius Platinum Ltd
62.50
65.00
60.00
67.50
70.00
72.50
75.00
77.50 p
59.65
15 Jun
Nokia
1.80
1.90
2.00
2.10
2.20
2.30
2.40
2.50

1.93
15 Jun
Cushman & Wakefield
The commercial real estate
services firm has announced that
James Meikle will transfer from
its Europe, Middle East and Africa
corporate occupier and investor
services team to head up
occupier representation. He will
specialise in advising City and
Canary Wharf occupiers. Meikle
previously ran Cushman &
Wakefields office leasing business in Milan.
Freshfields Bruckhaus Deringer
Laurent Garzaniti has been appointed co-head of the law
firms telecommunications, media and technology sector
group. He will work alongside Cologne-based partner
Norbert Nolte, and he replaces Ben Spiers, who recently
assumed the position of co-head of London mergers and
acquisitions. Garzaniti is a competition lawyer and has
broad experience of EU and Belgian competition law.
3i Debt Management
Andrew Bellis has been appointed as managing director
and partner at the debt management business. He will
report to Jeremy Ghose, managing partner and chief
executive of the firm. Bellis was most recently global head
of new issue collateralised loan obligations at Credit Suisse,
and he has also held a number of senior positions at Bank
of America Merrill Lynch.
Post Office
Alasdair Marnoch has joined the board of the Post Office as
a non-executive director. A chartered accountant, he will
chair the boards audit, risk and compliance sub-
committee. Marnoch has wide experience as a finance
director, and most recently served as chief financial officer
of the Equiniti Group, a provider of administration and
processing services.
Faster Payments Scheme
Craig Tillotson has been appointed as managing director of
the payment services scheme. He has 25 years experience
working as a board director and strategy consultant in the
telecoms and technology industries, notably at Vodafone,
T-Mobile and McKinsey. Tillotson joins from AT Kearneys
communications, media and technology practice.
Toronto-Dominion Bank
The Canadian banking group has appointed Lord Gus
ODonnell as a strategic adviser to Ed Clark, its chief
executive. He will provide advice and counsel on economic,
governmental, regulatory and strategic matters. ODonnell
was cabinet secretary and head of the civil service from
2005 to 2011, and has previously served as the UKs
executive director to the World Bank.
Ferrex
The Aim-listed iron ore and manganese development firm
has appointed James Carter to its board. Carter is Ferrexs
chief financial officer and has 18 years commercial and
financial experience in the resource industry. He was
previously chief financial officer of Straits Asia Resources.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
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CITY MOVES
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in association with
LONDONTHE WEEK AHEAD BESTof theBROKERS
DIXONS
Panmure Gordon rates the
electrical retailer as a buy
with a target price of 28p
ahead of results on Thursday.
The brokers expects the
numbers to provide support for
the UK profit recovery story.
AQUARIUS PLATINUM
JP Morgan has downgraded
the platinum produce from
neutral to underweight
with a target price of 63p
after the suspension of ops at
its Marikana mine.
NOKIA
Credit Suisse had cut its rating
on the Finnish handset maker
from outperform to neutral
with a target price of 2,
saying that its smartphone
recovery has been slower than
expected.
I
N THE four years since the start
of the financial crisis, we have
walked a tightrope between
enough and too much
regulation; between the
commendable aim of protecting
consumers, markets and financial
stability on the one hand, and the
tendency of politicians, looking to
voter concerns and media
headlines, to be seen to do
something.
That is understandable. But the
challenge is to do the right thing
drawing a medical analogy, to cure
the disease, to inoculate against
relapses, but to avoid killing the
patient through invasive surgery
and overdoses of strong medicine.
The function of banking, but also
S
OMETIMES life sucks.
Sometimes, one day we are
active athletic people,
running and playing squash,
and the next we experience a
bad back injury and cannot run fast
or twist any more.
When such things happen, it is
tempting to believe that there must
be a solution, some magic bullet
that will restore us quickly to our
former state. We ask the doctor what
pill we should take or what surgery
there is. If no such therapy works we
could try other routes maybe
Chinese or chiropractic medicine.
Next we might get desperate, check-
ing out homeopathy, Reiki, or faith
healers. We dont want to accept
that our back is bust, we are fortu-
nate to be able to walk at all, and if
we exercise vigorously again it will
only be after a slow, challenging
process of rehabilitation. Sometimes
there really is no magic bullet, and
sometimes a wise and helpful doctor
should tell us that hard truth even
if we initially angrily reject her
counsel.
Book at cityjet.com *Limited availability. Prices include taxes and charges, correct as of 12/06/12 but are subject to change at any time. Departing from London City Airport to Amsterdam for travel between 03/09/12 - 22/10/12 with last return by 25/10/12. Sales valid until 19/06/12. For full terms and
LONDON CITY AIRPO
WAY TO EUROPE. FRO
cityam.com/forum
If banks had gone
bust, there would have
been new banks to
serve unmet demand
In association with
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.
20
MONDAY 18 JUNE 2012
ANDREW LILICO
As with back injuries, so with an
economy. Sometimes economies
experience serious shocks and
things must change. People dont
want to accept this. They feel policy-
makers ought to be able to pull
some mystery lever, fire some magic
bullet, and all will be well again. A
policymaker that told us that there
was nothing more to do but grapple
with rehabilitation would find his
or her counsel rejected as angrily as
a doctor without a cure.
The British governments latest
wheeze its latest putative magic
bullet is funding for lending.
The idea is that the Bank of England
will lend money, on easy terms, to
banks, provided those banks can
credibly guarantee that money will
be lent out to businesses.
At one level, this is terribly ironic,
because so much of policy the past
four years has reduced the capacity
and willingness of the banking sec-
tor to lend. That is most obvious in
the case of the huge increases there
have been since 2008 in liquidity
and capital requirements. The more
capital firms must keep idle, in one
sense or another, the less they will
have to lend.
But it is also the case that the
whole process of bailing out bust
banks has impeded credit growth. If
banks had gone bust, there would
have been multiple new banks that
entered or arose to take the place of
the bust old banks; and old banks
that had not gone bust would have
also expanded to serve the unmet
demand. Because these new and
surviving players would be healthy
banks, they would be eager to lend
and to gain new customers. By con-
trast, bust banks do not have mar-
ket-driven incentives to expand
quite the reverse. To make bust
banks expand their lending, policy-
makers have attempted all kinds of
regulatory inducement and instruc-
tion (e.g. Project Merlin). Such meas-
ures chase the problem it is policy,
in the form of increased capital and
liquidity requirements and in the
form of bailouts to keep zombie
banks going, that has been an
important driver of limiting credit
growth.
Of course, when I say credit
growth I mean growth of credit to
firms with viable investment proj-
ects. Even under ideal circum-
stances, one would expect total
credit in the economy to shrink
particularly as households (not
firms) cut back. Politicians may not
like it, but the truth is that UK
households are horribly over-indebt-
ed and should be cutting their debts
faster, not slower, so total credit
should be shrinking, not growing.
In reality, claims by the govern-
ment to the contrary notwithstand-
ing, the new funding-for-lending
announcements, together with
their catchily titled Extended
Collateral Term Repo Facility bank
liquidity-enhancing brother, are
intended by the government to
respond to the risk of another credit
crunch if (as is seeming increasingly
inevitable) there is a widespread
financial collapse in the Eurozone.
But in truth, a Eurozone collapse
would set off such a dramatic series
of events that the Mansion House
measures would be overwhelmed
and irrelevant. No magic bullet can
end the euro crisis, and no magic
bullet can prevent Britain being
caught in the fallout of it.
Andrew Lilico is chairman of Europe
Economics.
of insurance, asset management,
the derivative markets and other
areas of City business, is to allocate
and manage capital so it performs
an economic function or more
simply, to make the domestic,
European and global economy
work.
There has been a mismatch
between intent and delivery over
the past few years, and we are still
seeing the consequences. Some of
the remedies are policy tools and we
can applaud the decisiveness of the
chancellor and the governor of the
Bank of England their decision
last week to open up the flow of
capital, through the banks and out
to the wider economy, may have
echoes of accident and emergency,
but if it supports the patients
recovery then few will argue.
But it is vital to get the longer
term treatment right. The
tourniquet has only a limited place
in modern medicine. Demanding
that banks and, indeed, insurers
hold ever-higher capital buffers may
reduce systemic risk but, at a time
when capital is scarce anyway, there
is a danger of less being available to
fund the growth of smaller
companies, the development of
intellectual property, the expansion
of world trade. If the tourniquet of
regulation is too tight, the capital
wont flow.
So, as we move to put into place
the new regulatory structures
under the oversight of the Bank of
England, and at a time of great
economic and political risk,
policymakers need to be acutely
conscious of the danger of over-
treatment. There are some good
signs: the Financial Services
Authority has accepted that high
quality and independent-minded
individuals will be deterred from
serving as non-executive directors if
the process to clear and authorise
them is too rigorous and
prescriptive. The proposals to ring-
fence retail and commercial
banking set out in the government
white paper can work given time,
pragmatism and the acceptance by
government that capital flows
should be encouraged, not
inhibited. On the fiscal front, the
direction of travel on corporation
tax is favourable.
Financial services business is not
a conspiracy against the common
good. Effective supervision and
proportionate regulation will
reinforce the wider economy, not
damage it.
Mark Boleat is policy chairman at the
City of London Corporation.
CITY
MATTERS
MARK BOLEAT
New banking regulation mustnt be the medicine that killed the patient
Cheap government credit isnt the
magic bullet for our future growth
conditions go to cityjet.com
RT. THE QUICKEST
OM 99
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21
Broken spring
[Re: Are shareholder revolts over executive
pay a coherent response to poor
performance?, Friday]
The shareholder spring is another example
of a public spurred on by a militant minority,
and fuelled by a mixture of jealousy and
ignorance. Anyone earning more than
double the average wage has been branded
a fat cat and undeserving of their pay.
Weve become a nation of failures.
GaryChaplin
Slamming well-paid executives is dangerous
to the economy and to businesses. The issue
has only arisen this year because of a few
people with anti-business agendas.
LisaMorden
No credit to them
[Re: Governments plan to subsidise credit
could easily backfire, Friday]
This new Bank of England-backed lending
wont work for our business. We have viable
plans but arent taking them forward, even
though we could raise funds. Firstly, we
dont like the rate or terms on offer from our
bank. We also dont trust the bank not to
demand the money back if the going gets
tough and were more concerned about the
impact of the euro crisis on our bank than
our own business. Secondly, the
government has us bogged down in a never
ending stream of new and updated
regulation and bureaucracy. Theres no time
to start new projects.
JohnMilton
H
APPY at work? Happy that
your commitment, courage
and integrity are recognised
and nourished? If not, learn
from how the Navy runs
and how its leaders get things done.
All firms contain managers, whose
job it is to do things right, and lead-
ers, whose job it is to do the right
thing. Improve leadership at work,
and you improve lives.
Doing the right thing means three
things: looking after your sharehold-
ers, your customers, and your people.
Its in the latter where leaders fail.
They tend to lack soft skills, the emo-
tional intelligence and the subtlety
of character to elicit the best from
their people when times get tough.
The Royal Navy runs on soft skills
(and never on shouted orders) these
are the qualities of character and cul-
ture that are remarkably resilient
and, most importantly, instilled in all
Royal Navy personnel. They under-
stand the uses of commitment, loyal-
ty, integrity, respect, cheerfulness in
ways that the commercial sector can
only dream of. And the Navy doesnt
lack the ability to plan, manage and
execute; it does these things highly
professionally.
This is military philosophy applied
to everyday working life.
Develop soft skills and see how
employees who are trusted, valued,
respected and treated cheerfully
flourish and prosper. In a recession,
if money is not the first reward,
improving an employees relation-
ship with work should be. Your peo-
ple will achieve more with fewer
resources.
Figure out what your ethos is.
Achieve this and customer service
becomes a reality, not just a hopeful
promise; innovation is inculcated
into the way everyone thinks all the
time; honesty isnt a matter of com-
pliance but a matter of fact.
TOP TWEETS
Government plans to subsidise credit are a
desperate attempt to reflate the debt bubble.
Expect inflation to accelerate.
@DGWilkinson
President de Kirchner of Argentina asks how,
geographically, the Falklands can be British. I
would explain, but I speak no Spanish.
@SirJoshuaToThee
Angela Merkel is standing firm. Good. Lets all
take our medicine, however unpleasant, and
start the long rebuild of something better.
@rupertmurdoch
The net result of government action in credit
markets is to reduce the wealth of society.
@SteveBakerMP
Will the City ever be representative of the
diversity of Londons broader workforce?
YES
Globalisation has changed the working landscape, and the City is no
different. London is one of the worlds leading financial centres,
staffed by top talent from across the globe, creating a truly diverse
workforce. As a City recruiter, I can confirm that roles are filled by
the strongest applicants and hiring decisions are based solely on
merit. However, the fact remains that the Square Mile is surrounded
by some of Londons poorest boroughs which, disappointingly,
remain grossly under represented in financial and professional
services. The key reason is that parts of our education system arent
producing a suitable quality of applicant, with the knowledge and
aptitude needed to break into what is a hugely competitive industry.
Unless this is tackled at source, there will be sectors of society that
will never achieve proportional representation in the City.
Ric Berke is director at Bruin Financial.
Ric Berke
NO
David Lammy
The City is rightly hailed as the worlds best across a swathe of
industries finance, law, insurance, consulting. I am intensely
supportive of the Citys elitism, but that support stops when the
elite become elitist. When recruitment depends more on who you
know than on what you know, the chances of the City ever looking
like London are thin. In too many City firms, people from
Tottenham might clean the desks by night, but they will never
occupy the desks by day. That isnt good enough. I salute the
noble ambitions of many to open up the City to people and
postcodes which have never before joined our global financial
elite. Yet, too often, these efforts are too sporadic and piecemeal
for the answer to the above question to be anything other than
no time soon.
David Lammy is Labour MP for Tottenham.
RAPIDresponses
Be clear in your thinking and you
will be more efficient. The Navy
works with Mission Command,
which sets out the intent, strategy,
resources and inspiration for large-
scale activity. Its simplicity is com-
pelling. It has been tested in all
manner of fast and dangerous condi-
tions. I have worked extensively in
the commercial sector, and spent
three years with the Royal Navy.
Never have I found a more upbeat,
consistent, yet flexible and innova-
tive working environment. I learned
that when people gather together to
achieve an end, soft skills get things
done. When two groups attempt the
same thing, the successful group will
be the one whose leaders understand
how to use soft skills to motivate and
maintain effort.
What about when things go
wrong? Edmund Hillary, first up
Everest, said that if you were in trou-
ble in a difficult place you needed
Ernest Shackleton, the heroic polar
explorer, because he understood his
people, and was prepared to do the
right thing. Shackleton never lost a
man in the Antarctic. He understood
his people, got them to make sacri-
fices for the common good, and
earned their respect.
And employees: imagine how
much better your day might be if
your leaders put some of those soft
skills to use and were prepared to fos-
ter them throughout the organisa-
tion.
Andrew St George is author of Royal
Navy Way of Leadership (Preface, 14.99).
MONDAY 18 JUNE 2012
ANDREW ST GEORGE
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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
Bruin Financial, a specialist financial services recruitment firm, in collaboration with David Lammy
MP, is hosting a forum in Westminster on 27 June to discuss the question of diversity in the City.
How business can
learn from Royal
Naval leadership
W
HEN the offer went up
by yet another 1m I had
to say yes. My heart was
heavy though because I
was proud of what we
had created from scratch, against
the odds. Id also had a lot of fun.
The business was the now famous
London club, Home House.
Eight years earlier, Brian Clivaz
had shown me a magnificent
Georgian building built by the
architect Robert Adam in the 1770s.
Empty for 12 years, it was derelict
but full of history. It had housed all
sorts of people, such as Earl Grey, of
the tea fame, and Anthony Blunt, of
the spying game. It was the French
Embassy during the revolution.
With its amazing staircase and
ornate rooms, it was absolutely
stunning and I fell in love with it.
Brians idea was to create a
members club with beautiful
sitting rooms, a health spa, 18 hotel
rooms, a restaurant, a bar and a
courtyard. I liked his concept, and
had a few ideas of my own.
I didnt want just another stuffy,
old-fashioned London club, where
dress codes usually required men to
wear a tie, and which offered a
wide, yellow polyester one if you
lacked one. Oh, and women were
rather discouraged. So I agreed to
be the largest investor and later
chairman. The club would allow
casual dress, mobile phones and
lots of women members. I knew
that if the women came to the club,
so would the guys.
Most of my friends
thought it wouldnt work.
1,500 a year membership
is too expensive Richard.
No one will pay it. Its just
outside Mayfair. That wont
work. That one I laughed
about: Yes, but why are
all your London
properties named
after the Monopoly
board anyway?
The restoration and decoration
took nearly two years, and cost over
10m. Brians struggle to get the
work finished and the club open on
time was the subject of a BBC
documentary, Trouble At The Top. I
was portrayed as the worried
money guy but the delays were not
really a concern to me. For me, the
success of the business would
depend on attracting enough
members, even if that happened
six months later than planned.
Eventually, we got the thing
going. At first there were many
issues with the service it was
not easy opening a business
with over 100 new employees.
But even that quirkiness seemed
to add a charm to the place and
it attracted 2,500 members.
Celebrities were everywhere.
Madonna stayed there. Bill Clinton
tried to get in after closing time. I
had a memorable moment at a
party when Sir Paul McCartneys
first words to me were I know
you. Hed seen the BBC show and
booked the club.
I still enjoy Home House. As just
another member the business side
is not my concern. And I am proud.
We invented a genre the
combination of a historic and
beautiful building with a casual
atmosphere. We sold the business
and kept the legacy.
Since the mid-1990s Richard Farleigh has
operated as a business angel, backing more
early-stage companies than anyone else in
the United Kingdom. www.farleigh.com
Dominique Lazanski reports on Ernst and Youngs award for the globes top new business
D
ESPITE the gloomy
economic outlook in
Europe, Monte Carlo was
buzzing, as Ernst and
Young hosted its twelfth
annual World Entrepreneur of the
Year award last week.
No fewer than 59 entrepreneurs
from 51 countries gathered to com-
pete for the top prize in an atmos-
phere of unfettered optimism.
This years country winners
included Reid Hoffman, founder of
LinkedIn, representing the US, and
Finlands Mikael Hed, chief execu-
tive of Rovio, the company that
makes Angry Birds.
No wonder they were upbeat. Even
in challenging times, these people
are creating jobs and wealth.
Together, they employ over 300,000
people across 51 countries and are
responsible for over $59bn (38bn)
in revenue in the last year alone.
Liew Kee Sin president and chief
executive of the Malaysian property
development company S P Setia
Berhad, which is bidding for
Battersea Power Station is enthusi-
astic and positive. He encourages
others to start their own business:
Its good to get away from ones
comfort zone and the downturn
was a wake-up call. There is no such
thing as a secure job anymore, so
why not take a risk?
Bill Buckley of BSL Buckley
Systems is equally enthusiastic.
Over the last 25 years he has grown
his company into the largest manu-
facturer of precision electromag-
nets and ion hardware in the world.
Buckley is very down to earth, with
a palpable passion for what he does.
He has a less than 1 per cent staff
turnover and his positive attitude
shows why.
His advice to upcoming entrepre-
neurs is: Dont be frightened. Have
a goal and go for it. And make quick
decisions. If you make a mistake you
can always fix it later.
AND THE WINNER IS...
All country level winners had already
competed in regional and country-
wide finals for the chance to repre-
sent their country. The World
Entrepreneur of the Year was chosen
after a long day of interviews held by
a selection committee of past win-
ners including Steve Case, formerly
of AOL, and Michael Spencer of Icap.
The title of World Entrepreneur of
the Year went to James Mwangi, chief
executive and managing director of
Kenyas Equity Bank the largest
bank by customer base in East and
Central Africa, and the largest
African majority owned company in
the region. The bank has over
half of all bank accounts in
Kenya (7m accounts). Mwangi is
responsible for tuning around a fail-
ing micro-finance institution and in
the process helps improve the quality
of life of the poorest, by giving them
access to finance for investment.
Mwangi came from a poor family
and his father died in the repatria-
tion effort at the end of the last cen-
tury. The ability to mobilise trust and
confidence in the business that he
created was a key secret to his suc-
cess. He urges everyone to look to
Africa for investment in these tough
economic times.
Although each entrepreneur has a
different story to tell and are
involved in a wide range of indus-
tries, from food products to hospitali-
ty, to software and everything in
between they had similar ambi-
tions to create jobs and elevate the
health and welfare of the very poor-
est in the world. Entrepreneurs, not
the government, will do the hard
work of rebuilding economies.
Aigboje Aig-Imoukhuede of Nigerias
Access Bank sums it up best: The
government and central banks cant
generate jobs. A wise government
makes a country fertile for entrepre-
neurs and then entrepreneurs create
jobs.
World Entrepreneur of the Year
G
OOD things dont always come
to those who wait. Here are
some great prizes for talented
entrepreneurs looking to kick-
start their start-up.
Innovating for Growth (British Library)
Key date: Ongoing
Details: You can win a package of business
advice and support worth 10,000 through
th British Library. It is available free to SMEs
who want to expand.
Website : www.bl.uk/bipc
Money Making Ideas (Borro)
Key date: Closes today
Details: The Money Making Ideas
competition will award one small business
or entrepreneur with a 10,000 prize to
invest in their existing business. To
participate in the competition, you need
to submit a 250-word text pitch, or 60-
second elevator pitch video of yourself
talking about your business idea and how
you would invest the prize money.
Website: www.facebook.com/borroloans
Enterprising U (RBS)
Key date: Closes on Friday
Details: The RBS EnterprisingU is your
opportunity to win 25,000, 10,000, or
5,000 in cash for your business ideas or
existing business. You will have to run
your business concept through Figs
viability tests (2 online forms) to be in
with a chance to pitch these ideas to a
room full of investors.
Website: www.enterprisingu.com
Marketing 4 StartUp Britain 2012
Key date: 16 July 2012
Details: You have the chance to compete
to win the services of a marketing agency
for a year.
Website:www.marketing4startupbritain.com
Dr James Mwangi, World Entrepreneur of the Year (above left); the trophy (above middle); Mikael Hed (above right)
ENTREPRENEURS
22
Four competitions
for speedy growth
MONDAY 18 JUNE 2012
cityam.com
of a SERIAL
ENTREPRENEUR
RICHARD FARLEIGH
CONFESSIONS
INNOVATION
DIARY
PHILIP SALTER
The ace of clubs: Building an innovative legacy at Home House
In association with
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A
S INDIA looks set to lose its
investment grade rating, are
the Bric nations starting to
tumble? The last ten years
have seen investors flocking to the
vaunted opportunities available in
the markets of the Bric grouping of
Brazil, Russia, India and China. Over
that time, Bric indices have almost
quadrupled their gains and their
economies have expanded at four
times the rate of the US. With the
rise of emerging market-based
exchange-traded funds (ETF) and
other vehicles facilitating retail
investment in previously closed
economies, investors in the west
clamoured to get their hands on the
Bric growth story. But is the gold
rush over? Certainly, questions are
rightly being asked as Europe
deteriorates and its demand for
emerging market exports fall,
coupled with emerging market
inflation problems and fears of a
Chinese hard landing, the Bric
package does not seem the
attractive opportunity it did ten
years ago.
INDIA JUNKED
Ratings agency Standard and Poors
has warned that India may become
the first of the Brics to lose its invest-
ment grade rating. Threatening to
junk India, it says that Indian
authorities may be unable to react to
economic shocks quickly enough to
maintain its current creditworthi-
ness. A note on the agencys negative
outlook states: Slowing GDP growth
and political roadblocks to economic
policymaking could put India at risk
of losing its investment-grade rating,
which is just one notch above specu-
lative grade and carries a negative
outlook.
And it is not just India that is strug-
gling. The European crisis has been a
The Brics start to look wobbly as
emerging market growth slows
drag on Russian stocks, while an over-
heating real and falling commodity
prices have hit the Brazilian market
below the waterline (both rated BBB,
one notch above India). China
appears to be in a more stable posi-
tion at AA-, but its slowdown may
have some way to go. Authorities
have reined in inflation a little, and
are trying to suppress property
prices, which is harming investors.
During the ten years of growth, sup-
porters of Bric investment opportuni-
ties lauded the ability of state-driven
capitalism to push through the
changes required to allow emerging
economies to compete with their
Western liberal counterparts. But as
the Brics struggle with inflation and
malinvestment, this run appears
increasingly less certain. It can con-
vincingly be argued that the Brics are
a disparate group which are better
considered individually rather than
as a grouping. But they do share com-
mon difficulties with transparency,
corporate governance and political
interference and this leaves a lot of
questions that need to be resolved for
the Bric success story to continue.
Spiralling inflation could be the wrecking ball that breaks down emerging market growth
As the cracks start to show, investors are not so quick with their money, writes Craig Drake
MONDAY 18 JUNE 2012
24
cityam.com
PERSONAL FINANCE MANAGEMENT WEALTH
IBOV (Brazil)
Feb Mar Apr May Jun
70,000
65,000
60,000
55,000
RTSI (Russia)
Feb Mar Apr May Jun
2,000
1,750
1,500
1,250
Sensex 30 (India)
Feb Mar Apr May Jun
19,000
18,000
17,000
16,000
SHComp (Shanghai)
Feb Mar Apr May Jun
2,500
2,400
2,300
2,200
It has been a tough time in the news of late for the
Bric economies, with talk of a hard landing in
China, political stalemate in India and falls in
natural resource prices affecting exporting
nations like Brazil and Russia.
In our view, though, these are just bumps in the
road, and the long-term investment case for these
economies remains intact. All of the Brics are
continental-sized economies with large
populations that are less affected by negative
demographic factors than many more developed
nations. One of the biggest points in their favour
is the emergence of a middle class who want the
same advantages in terms of goods and services
as their peers in the developed world. As the
focus shifts from exporting cheap goods to
greater domestic consumption and investment,
the Bric economies will be less exposed to global
economic conditions than is currently the case.
This trend will take many years to play out, which
is why we remain confident on the long-term
investment prospects for the Brics. However, the
volatility that has been seen in the major indices
of the Brics underlines the need for taking an
active approach to investing in these markets.
Searching out the companies that will benefit
from the economic and social trends is likely to
produce a better and smoother return over the
long term than simply following an index as it
rises and falls.
Richard Titherington is chief investment officer of
emerging market equities at JP Morgan Asset
Management.
NO
RICHARD TITHERINGTON
In the aftermath of the financial crisis there is no
doubt that Bric countries became a popular choice
to diversify investment portfolios. However, the
shockwaves from the deepening Eurozone crisis
has led some emerging markets stock indices to
experience sharp falls since the beginning of March,
whereas US markets have remained more stable.
Yet currently, US equities are among the most
attractive assets. The recent pull-back has helped
to alleviate some of the overly optimistic sentiment
indicators that were highlighted earlier this year in
the market. Earnings remain healthy, car sales and
the housing market have improved, and although
unemployment claims are no longer descending at
the same pace as weve seen of late, the labour
market is continuing to heal. Following the easing
of Middle East tensions and weaker global growth
there has also been a dramatic pullback in oil prices
which is crucial to help contain inflation concerns,
bolster consumer confidence, and adds to the
discretionary spending budget. The continued
uncertainty in the state of the global economy and
the subsequent market volatility reminds us again
how important it is to base investment decisions on
a long-term strategy. But for investors looking to
re-balance their portfolios for the longer term,
relatively speaking the US market is an attractive
option as the economy continues to muddle
through despite the global economic slowdown. As
our chief investment strategist recently asked, is
the US the best house in a bad neighbourhood?
Kully Samra is UK branch manager at Charles
Schwab.
YES
KULLY SAMRA
Is it time for investors to return their focus to the West?
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F
or non-members, visiting Skibo
Castle, home of the ultra-
exclusive Carnegie Club, is
bittersweet. Allowed just one stay
pre-membership, those who are
invited to sample the castles delights
and the lifestyle offered by the Club,
named after Skibos former owner
Andrew Carnegie, are exposed to
such a confluence of pleasures that
the predominant feeling on
departure is: I want to come back.
Come back you may, but youll have
to be a guest of an existing Carnegie
Club member a rarefied group or
gain membership yourself. This
should your application be successful
will set you back 24,000 in joining
fees plus 7,690 per year (both with
VAT), before room rates, which start
at 985 for a double room.
Then again, the refined grandeur
that permeates Skibo from the
superbly restored castle and cottages
to the estates own single malt (each
room contains a crystal decanter of it)
is very much for those with
resources. With a membership com-
posed of successful London financiers,
American tycoons and assorted
European heavy-hitters and aristo-
crats, money tends not to be an issue.
Elite on all counts, Skibo is not a
hotel. It is a members club to treat as
a second (or third, fourth or fifth)
home; a place where you can sip
whisky and read the paper unmo-
lested in one of Andrew Carnegies
old studies, sneak off for a horse
ride round the estate or swim
lengths in a newly revamped con-
servatory swimming pool. The
estate also boasts one of the finest
golf courses in the country the 18-
holer is the only Championship
course that allows you to play with-
out a tee-time.
Unlike in a hotel, you wont see a
pound sign anywhere (apart from
the spa, perhaps) and dinner is not
marred by anything as crass as
choice the menu is presented to
you fresh each day, and tends to be
composed of rich, delicious local
ingredients or traditional dishes such
as beef, oysters, smoked salmon and
of course haggis and cranachan.
There are two histories at play at
Skibo. The site itself has been occu-
pied since Viking times. The first cas-
tle was built in the late 12th century
by the Bishop of Caithness and
Sutherland on the remains of a Norse
stronghold. In 1545, the estate was
given to John Gray, of a powerful
Catholic family, and it has been pri-
vately owned ever since.
But Skibos current incarnation
owes most to its purchase, in 1898, by
steel magnate Andrew Carnegie.
Though he made his fortune in
Pittsburgh, Carnegie was the son of a
Dumferline weaver, and would return
Only a small part of the original Skibo Castle remains, but the building has been renovated in great period splendour.
LIFE&STYLE
MONDAY 18 JUNE 2012
26
cityam.com
TRAVEL
Fine wines and food evolved into a vigorous
ceilid a good session of Strip the Willow certainly
helped burn off the pudding of cranachan souffle
TRAVEL NOTES
BY ZOE STRIMPEL
Andorras Sport Hotel opens on 29 June
The luxury Sport Hotel Hermitage & Spa opens for the
summer season offering excellent access to the Pyrenees,
Europes highest golf course (at 2,250m), one of Europes
largest spas offering a huge array of treatments, plus
plenty of activities for kids. The ultimate European out-
door experience. www.sporthotels.ad
Watergate Hotels new look
The iconic North Cornwall hotel is unveiling its 3m proj-
ect to create new active relaxation spaces featuring a
25 metre pool, treatment rooms and guest lounge all with
stunning views over the bay. A new boardwalk gives surf-
in/surf-out access. Rooms from 105 on a B&B basis for
two people sharing. www.watergatebay.co.uk
Borneos Gaya Island to open 1 July
Gaya Island will open on Pulau Gaya, off the coast of Kota
Kinabalu. The resort, fringed by a golden beach and
backed by rainforests, features 121 stand-alone hill villas
with spectacular views of the South China Sea and majes-
tic Mount Kinabalu. From 2,995 per person (incl flights
from Heathrow), through Wexas Travel. www.wexas.com
Summer nights at Soho House Berlin
This summer, SHB is unveiling 20 slick new apartments
and, in August, non-members can get in on the coolest
venue in town. Original Travel offers stays at Soho House
Berlin during August including 20 per cent off any room
or apartment. Discounted rates from 84. Visit
www.originaltravel.co.uk or call 020 7978 7333.
to Scotland for summer holidays.
Carnegie made Skibo his Scottish
retreat, and though he didnt drink
himself hosted legendary parties
with guests such as Rudyard Kipling,
John D Rockefeller, King Edward VII
and numerous heads of state who
would carouse and delight themselves
with country pursuits. In 2003, the
club was bought by a member, kick-
starting a 16m renovation.
The weekend we visited, the weather
in London was as ever atrocious.
But stepping off the plane at Inverness,
an hours drive from Skibo, the sky was
pale blue and still light at 9pm.
The quality of the Highlands air is
famous and indeed its purity is star-
tling. We had but scant time to breathe
it in while surveying the landscaped
gardens of the estates 7,500 acres
before we were due at a late supper,
kept especially for us.
While the estates 12 family cot-
tages are lovely and practical for large
groups, nothing beats staying in the
castle. Sweeping through the oak-pan-
eled foyer, whose tables are set in the
morning with whole smoked salmon
and home-made Bircher muesli, you
ascend a grand spiral staircase past a
stained-glass triptych dedicated to,
somewhat egotiscally, Andrew
Carnegies life. My room on the top
floor was vast, lavishly but tastefully
furnished in late 19th century style,
with panoramic views and wait for it
a gold-trimmed telescope. Madonna
had her wedding at the castle and Ill
bet she stayed in this room, a place in
which a lady can truly relax while
reclining on the vast pale blue-uphol-
stered sofa looking out to the fields, a
flagon of whisky and some home-
made fudge in hand (no fudge and
whisky for Madge though, obviously).
The second night was particularly
special. After a day of riding, quad-bik-
ing, swimming, spa-ing, gyming and
eating, we prepared for a rather
unique Saturday nights entertain-
ment. At 7:30 we were invited to
drinks in the drawing room, where the
Pommery flowed and oysters were
brought out. Guests many of whom
were in kilts discussed the days golf,
before being summoned to dinner. But
first: a furious bagpiping session and
the ritual haggis knifing (poetry
included) the haggis, served with a
dram of whisky for a toast, was the
best canap Ive ever had.
Dinner in Mrs Carnegies dining
room, as it is known, was an extrava-
gant affair with all the guests (bar chil-
dren) seated around one enormous
mahogany table. Fine wines and fine
food and toasts evolved, eventually,
into a vigorous ceilid (bagpipes and
dancing) a good session of Strip the
Willow helped burn off some of the
calories from the cranachan souffl.
Leaving was a wrench because a
return can not be guaranteed. But if
you have the chance to experience the
Donovan Club at Skibo Castle, its a
very worthwhile kind of wrench.
For information about visits, golf and
membership, go to www.carnegieclub.co.uk
or call 01862 894 604.
HideawayintheHighlands
Zoe Strimpel visits the splendid, ultra-exclusive Skibo Castle
MONDAY 18 JUNE 2012
27
CELEBRATE THE CITY
cityam.com
AGENT PROVOCATEUR, ARTISAN FINE ART, BACHET, BOODLES, BULGARI, CHURCHS, CROCKETT & JONES, DE BEERS, GRAND CAFE, GUCCI, HARRYS OF LONDON, HERMS, IMPERIAL CITY, JO MALONE, KIEHLS, KOJIS,
LOCCITANE, LOEWE, LORO PIANA, LULU GUINNESS, MEZZANINE LOUNGE, MOLTON BROWN, MONTBLANC, OMEGA, PAUL A. YOUNG FINE CHOCOLATES, PAUL SMITH, PAVAROTTIS, PENHALIGONS, PRETTY BALLERINAS,
ROYAL EXCHANGE JEWELLERS, SAGE BROWN, SAUTERELLE, SEARLE & CO, SMOKERS PARADISE, SMYTHSON, TATEOSSIAN, THEO FENNELL, TIFFANY & CO., VILEBREQUIN, WATCHES OF SWITZERLAND
ROYAL EXCHANGE, BANK, CITY OF LONDON, EC3V 3LR STORE TRADING HOURS 10AM - 6PM RESTAURANTS & BARS 8AM - 11PM
CELEBRATE THE CITY
LIVE MUSIC I POETRY READINGS I LUXURY SHOPPING I SUPERB DINING
IN ADDITION, THE GRAND CAF IN THE COURTYARD WILL HOST BRITAINS MOST REVERED CRAFTSMEN,
AS THEY ABANDON THEIR WORKSHOPS FOR THE DAY TO DEMONSTRATE THEIR SKILLS TO THE PUBLIC
CELEBRATE THE CITY 2124 JUNE FOR FURTHER INFORMATION GO TO VISITTHECITY.CO.UK
FOR FURTHER INFORMATION VISIT THEROYALEXCHANGE.COM
A SPECIAL OPENING ON SATURDAY 23 JUNE TO CELEBRATE THE CITY IN STYLE
W
HO knew there could be so
much to explore and enjoy in
one Square Mile? This week as
the Spitalfields Festival comes
to a close and the 50th anniversary of
the City of London Festival begins City
buildings throw open their doors to
give you the chance to encounter
breath-taking interiors and unrivalled
riches. Make a date and bring the family
for must-see entertainment, street
sports, exhibitions, livery
demonstrations, walks, talks, poetry,
music and more in one fantastic
celebration that is everything City.
In the articles that follow, Matt
Trueman explores a few of the
highlights during the four days of
festivities read on and get a taste of
whats on offer or, for full programme
details, check out
www.visitthecity.co.uk/culture2012 or
pick up a brochure from the Citys
churches, libraries or the City
Information Centre opposite St Pauls
Cathedral. Most events and activities are
FREE!
Celebrate the City: four
days in the Square Mile is
promoted by the City of
London Corporation and
the Diocese of London
with generous support
from the City Bridge Trust.
@celebrateatcity celebratethecity Follow facebook.com/
Listen to Magic 105.4 for your chance to win exclusive Celebrate the City prizes
www.visitthecity.co.uk/culture2012
MONDAY 18 JUNE 2012
28
CELEBRATE THE CITY
cityam.com
H
ow do you celebrate
something as multifaceted as
the City of London? It is a
place of contradictions: both
a glass-fronted metropolis and a
cluster of stone relics, stubborn and
robust. It throngs with people of all
nationalities and hums with activity
that is at once local and global.
Crammed into a single square mile
(marginally bigger, if were being pre-
cise) are around 300,000 workers and
hundreds of heritage sites, architec-
tural icons old and new, public sculp-
tures and statues, organisations,
associations and cultural bodies. All
because, some 2,000 years ago, some
Roman set down his stall on the bank
of the Thames.
Celebrate the City aims to cover all
that and more, squeezing everything
the Square Mile offers into the long
weekend that straddles midsummer
(21-24 June). The City has an enor-
mous amount of culture going on
every day, explains Sir Nicholas
Kenyon, Managing Director of the
Barbican Centre, but in this special
year of 2012, we wanted to draw it all
together over four days.
In fact, organisers hope to go one
better and condense the spirit of the
City into a single launch event.
On Thursday evening, at 6pm,
Celebrate the City begins with a
bang. Sixteen of them in fact; each a
cannon shot in Tchaikovskys iconic
1812 Overture performed outdoors in
Guildhall Yard by students from
Guildhall School of Music & Drama.
Admission is free.
Guildhall Yard makes perfect sense
as a launch pad. Its bang in the cen-
tre of the City and embodies 2,000
years of the Citys history and archi-
tecture. From it you can see a paved
circle on the floor that marks the
Roman amphitheatre preserved
underneath and the Guildhall itself,
which dates back to the 15th Century
and mixes gothic and modernist
architecture. On the south side
stands St Lawrence Jewry, designed
by Christopher Wren in the 17th cen-
tury and rebuilt after the Second
World War, and on the east side is
Richard Gilbert Scotts Guildhall Art
Gallery, a relative fledgling at only 13
years old.
Project Director, Stella Ioannou,
believes the Yard is one of Londons
hidden treasures. You can talk to
someone who works in a business
next door, and they might never have
been into the yard. Thats what
Celebrate the City is all about: a mag-
nificent public space, a big musical
performance and, hopefully, some
sunshine.
The Lord Mayor suggested the 1812
Overture as a personal favourite
and, of course as a resounding and
triumphant piece of music which
captures perfectly the celebratory
mood of this event.
As a favourite of Independence Day
celebrations, many Americans think
it recalls the USAs defeat of the
British Empire. However, Tchaikovsky
was actually writing about Russias
victory over Napoleons French in the
same year.
Nonetheless, Napoleonic Wars
hardly scream London. Fortunately
Jonathan Doves River Songs, which
opens the event, does. The cantata is
inspired by the River Thames.
It will be performed by a selection
of choirs, several made up of employ-
ees at major City companies includ-
ing Standard Chartered and Hearst
Magazines. Brought together by
Music in Offices, a charity run by
Tessa Marchington and Guildhall
graduate Joel Garthwaite, they will
sing alongside the Guildhall Staff
Chorus and choirs from Barbican
School and BBC Worldwide Service,
building to a ten minute crescendo
featuring hundreds of combined
voices just over 250 of them.
Audiences relationships to her-
itage and culture are really chang-
ing, says Kenyon. Rather than being
passive observers, they really want to
take part and have a sense of owner-
ship.
When a piece of music is as rousing
as Tchaikovskys though, most are
happy to sit back and be blown away.
The 1812 takes its time to build. A
slow and solemn start grows into a
series of running battles between
brass and string sections. Fragments
of the Marseillaise compete with
Russian folksongs. First the French
seem to be winning, then the
Russians. It teases you with morsels
of that familiar final refrain (do-do-
do-do-do-do-do-bom-bom) before soar-
ing into its final jubilant cacophony
of cannon fire and clanging bells. Its
an explosive 16 minutes.
Its the perfect piece for this sort of
occasion, says Kenyon, Its perfect
for the outdoors. If it were any
longer, youd want to sit down.
Everybody knows some of it and it
will make a huge impact.
Matt Trueman
Start your weekend with a bang
this Thursday evening at 6pm
Above: Tchaikovskys dramatic 1812 Overture will be performed in Guildhall Yard for
free. Right: Guildhall School musicians prepare for the performance.
When music is as
rousing as this, most
are happy to sit back
and be blown away.
Hear Tchaikovskys thunderous 1812 Overture in the magnificent Guildhall Yard

MONDAY 18 JUNE 2012
29
CELEBRATE THE CITY
cityam.com
A
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SUMMER
SHOW
Post War
Winners
Buy
Use
Collect
Treasure
British
Silver
Post War Winners
Exhibition: May to September 2012.
Leading Modern British Silversmiths
www.thesilvervaults.com
Silver
vaults
the London
the home of silver shopping
W
ALKING around at street
level, you only glimpse a
fraction of the City. For
the most part, it oper-
ates and exists behind closed
doors and, at close to 2,000 years
old, it has its fair share of stories
and secrets tucked away.
There is an enormous
amount going on under the
radar in the City that people
dont normally get to see, says
Sir Nicholas Kenyon with just a
trace of mischievous relish,
Were basically saying, Lets
make all this visible.
During the four days of
Celebrate the City, a large num-
ber of the Square Miles major
buildings and institutions will
open their doors to the general
public for free. The result will be
a unique perspective of the City
and a rare insight into its work-
ings.
My background is architec-
ture, says project director Stella
Ioannou, and there arent many
buildings of note in London Ive
not been inside, but Id never
been into the Bank of England
before and it literally took my
breath away. Its one of the most
beautiful buildings Ive ever
experienced.
Celebrate the City incorpo-
rates the first weekend of the
London Festival of Architecture
with its Developing City exhibi-
tion and builds upon the work
that the City of London Festival
has done over the years in open-
ing up City buildings for music
and other events, juxtaposing art
and architecture in spectacular
fashion.
Architectural treats this week-
end include Sunday tours of
Mansion House, the Lord
Mayor's home and workplace,
which leave every hour, while the
Bank of England and many of the
livery halls will be open on the
Saturday, including the stunning
Goldsmiths Hall on Foster Lane.
In many of these cases, its not
just the building itself that holds
appeal, but the contents as well.
ING never really opens its build-
ing up, explains Ioannou. Part
of INGs unique art collection is
the Baring Brothers collection,
which 120 lucky people will get
the chance to see on this tour.
Its an art aficionados dream.
Similarly, at Mansion House, the
Harold Samuel Collection of
Dutch and Flemish Masters will
be on show.
For heritage, the Guildhall is
the place to go. Beneath it is one
of the Citys oldest relics; the sur-
viving remains of a Roman
Amphitheatre that dates back to
around 120AD. Due to its ambi-
ent low light, it also boasts per-
fect conditions to display the
Citys Magna Carta. This 700-
year-old document, probably the
finest surviving copy in the
world, will be on show alongside
a collection of very rare docu-
ments about the Sheriffs of
London. The Citys Shakespeares
First Folio will also be on display,
in the Guildhalls Old Library.
The Great Hall itself the old-
est part of the building will
also be set up for the next
Sheriffs election; one of many
unique customs and rites
involved in the organisation and
governance of the City.
Ioannou believes that such
lesser-seen processes can appear
anachronistic and risk being mis-
understood. Opening them up is
at the very heart of Celebrate the
City. Its important to explain
these mysterious ancient organi-
sations, because unless youre in
it or youve had the opportunity
to experience it, you are unable
to understand and appreciate it.
Kenyon agrees: When you
come into the City, theres this
incredible sense of energy, of
things being done and business
being transacted. But its all
within an aura of slightly veiled
mystery. Working out what the
levers are and whos driving
what can be difficult to pene-
trate. We ought to open up the
City and explain it.
At the Guildhall Art Gallery,
for example, the Butcher, Baker,
Candlestick Maker exhibition of
livery treasures will drop its
admission charge on Saturday,
while several of the halls are not
just open, but offering guided
tours as well.
Kenyon believes that the
chance to see London in the com-
pany of experts is a rare opportu-
nity and a real highlight of the
festival. There are several walk-
ing tours of the Citys many phe-
nomenal churches, including All
Hallows and St Brides, and oth-
ers dedicated to iconic
Londoners, such as Dr Johnson,
poet John Keats and Charles
Dickens.
The array of treasures on show
during Celebrate the City is testa-
ment to the spirit across the
Citys many organisations,
according to Kenyon. We could
not have done this without the
collaboration and partnership of
all the institutions in the City
that have worked together to cre-
ate this unique moment.
Matt Trueman
Four days of
open doors and
hidden treasures
Marvel at the Magna Carta or get a peek
behind the scenes at the Bank of England...
Bullion for you: Check out the exhibition at Bank of England Museum
Mansion House, home of the Lord Mayor, opens its doors on Sunday 24th June for tours
of its magnificent interiors and its collection of Dutch and Flemish Masters
Bring the family to the Cheapside Fayre on Saturday
Champagne sunset
Friday night at Tower Bridge
On Friday 22nd June (6.30-9pm), the high-level Tower Bridge walkways are open for free to the public, who can sip champagne whilst watching the sun set over the capital.
As London experiences go, they dont come much more iconic and memorable than this, says Matt Trueman
MONDAY 18 JUNE 2012
30
CELEBRATE THE CITY
cityam.com
T
HE CITY is magical at night,
says Stella Ioannou, Project
Director of Celebrate the City.
Shes right, of course. The
London skyline is among the most
recognisable anywhere in the world
and its finest rooftops and spires
from the dome of St Pauls to the tip of
the Gherkin are clustered in and
around the Square Mile.
On 22 June, Celebrate the City is
offering members of the public a
rather special viewpoint: from the top
of Tower Bridge as the sun sets over
London with a glass of champagne in
hand. As London experiences go, they
dont come much more iconic than
that.
So much so, in fact, that the bridge
was the location for The Apprentice
final in 2006, with the last two remain-
ing candidates challenged to host an
event in one of the walkways.
Whats more, the Bridge will play
host to the five Olympic rings, creating
a visual focus for the Games this sum-
mer and reinforcing its position as
Londons best-loved landmark.
The two high level walkways above
Tower Bridge stand 143 feet above the
River Thames and offer spectacular
views. To the west, you look out over
the Tower of London, HMS Belfast and
towards Blackfriars Bridge. However,
with the Olympics only a month away,
the activity will be in the east towards
Docklands, Canary Wharf and
Greenwich. Look down and youll see
the Citys lights reflected in the river
itself.
In fact, the only thing that wont be
in your eye line will be Tower Bridge
itself. It is a definitive London icon that
appears on signposts pointing this way
all over London. Set to grow more
recognisable as it becomes a symbol of
Londons Olympic presence, the Bridge
was also the climactic backdrop for
the pageant marking the Queens
Diamond Jubilee.
Construction started in 1886 and
Tower Bridge took eight years to build
at a cost of 1.18m equivalent to 100
million today. When the Bridge used
to open on a regular basis, allowing
ships passage into the Pool of London,
the walkways were just that; pedestri-
an footbridges reached by passenger
lifts. Today, with the opening a rarer
occurrence, they serve as an award-
winning venue for hire and as one of
Londons most popular visitor attrac-
tions.
But without an invite to one of the
various events held in them or by pay-
ing the admission fee for the Tower
W
HEN people talk of cities
as playgrounds, they tend
not to be thinking about
swings and roundabouts,
but bars, restaurants and the like.
Its not exactly child-friendly.
However, families are at the
heart of Celebrate the City and a
significant proportion of the
festival programme has been built
with them in mind.
When it comes to things to do
in London, says Stella Ioannou,
Celebrate the Citys project
director, The Citys not
necessarily the number one family
destination. We wanted to open
the City up to groups that might
not ordinarily take part in what
its got to offer and families were
at the forefront of that.
During the four days, children
will get free access at set times to
two of Londons most iconic
landmarks, both designed by Sir
Christopher Wren: St Pauls
Cathedral and the Monument on
Fish Street Hill, where you can
climb the 311 steps for a
spectacular panoramic view.
More or less sandwiched
between the two is Cheapside,
effectively the Citys original high-
street. On Saturday 23 June, it will
be closed to traffic as Celebrate
the City takes over and transforms
it into a family fayre. All manner
of stalls and activities will be
spread from one end to the other,
spilling onto the side streets to the
north up to the Guildhall Yard
where there will be a market.
All of this is happening, not in
the context of some green field or
other, but in the middle of the
City, with all its fantastic heritage
and history, the Barbicans
Managing Director Sir Nicholas
Kenyon points out, Its also a
fantastically concentrated area so
its very easy to get around.
On the day, the street will be
split into three areas, showcasing
music and performance, sport and
the Citys various liveries.
Stages at the east end of
Cheapside will host performances
from City Bridge Trust-supported
organisations, including the
London Childrens Ballet and
circus and street dancers, Funk da
Cirque! Other performances, such
as stilt-walkers and suitcase-size
puppetry, will be roaming
throughout and, in One New
Change, a series of choirs and
bands playing all day. As you walk
west towards St Pauls, it becomes
more hands-on: sporting activities
from Golden Lane Sport &
Fitness, interactive
demonstrations from
St John Ambulance
and Fire Services
and, most crucially,
free ice-cream for
children.
However, its the
livery company
demonstrations
that will
likely
draw
most
interest.
Rooted in
Medieval
England, these companies are the
Citys original trade unions and
theres one for almost every trade.
Depending on who you choose to
agree with, there are 108 or 109 of
them, says Ioannou. Theres
everything from the fan-makers to
the glove-makers, the information
technologists to the tax advisors. I
cant even pronounce half of
them.
With many different liveries
represented, Cheapside Fayre
offers a unique opportunity
to see their work up close.
The Farriers will be shoeing
horses. The Blacksmiths
are bringing a forge. The
Poulters will be showing
chicks in incubators at
various stages of
development and the
Farmers will be
milking a cow on
Milk Street.
But the City is
about more than
its various
trades. Its also
home to some stunning
architecture, much of which will
be open access.
With her background in
architecture, Ioannous delighted:
Even as an adult, I still get excited
when I go to the top of the
Gherkin or at the 25th floor of
Tower 42. For a child whos never
even been into the City, let alone
in a high-speed lift to the 34th
floor, thatll be something else.
Reinforcing this theme is the
Open House Junior Festival,
Londons first ever child-friendly
City architecture festival run by
Victoria Thornton, which will be
running a series of workshops and
competitions. Were educating a
generation and giving them the
opportunity to start
understanding how you build a
building and even, dare I say, to
consider becoming an architect.
Its the chance, in other words,
to get a glimpse into the
playgrounds of the future.
Matt Trueman
Bridge Exhibition, theres no getting
in. But on Friday 22 June from 6.30pm,
admission is free all part of Celebrate
the City a feast of exhibitions and
entertainment and the City of
Londons response to the 2012 Games.
If you live in London and you havent
been onto the walkways on Tower
Bridge to watch the sunset, then, quite
frankly, youre missing a trick, says
Ioannou.
Thats totally in keeping with
Celebrate the Citys programming pol-
icy, by which it intends to open up the
Square Miles best-loved buildings and
treasures to the public. On the 22nd,
once the sun has gone down, therell
be a spectacular light show showcas-
ing the Bridges brand new energy-
efficient LED makeover to round the
evening off. Its basically date-
night, laughs Ioannou.
In fact, budding romantics are well
catered for throughout Celebrate the
City. Also on Friday evening, at 6pm,
opera group Amore will be giving a
free concert in the Gothic ruins of
nearby St Dunstans Church. The
Wren-designed building was a vic-
tim of the Blitz, but its remains have
been turned into an elegant garden
that will provide a gorgeous setting.
Youthful and fresh, Amore arent
your average opera stars and have
been called sultry singing sensa-
tions by Hello Magazine. Expect
popular classics.
In fact, the City often does
romance all by itself, as showcased
by the various walks through its
secrets. The Blooming City treads a
route around the Citys public parks,
while the two church tours and
another filled with John Keats
romantic poetry should also set
hearts throbbing.
For a more unstructured route, the
Great St Helens Sculpture Space is
ideal. This newly installed outdoor
sculpture space, can be reached by a
free rickshaw from Cheapside on
Saturday and contains work by
Tracey Emin, Michael Craig-Martin
and Julian Opie, as well as Yayoi
Kusamas rather appropriate Flowers
That Bloom Tomorrow.
Recipe for success is a special blend
Neleen Strauss of
wine restaurant
High Timber on
three years in EC4
MONDAY 18 JUNE 2012
31
CELEBRATE THE CITY
cityam.com
SUMMER OF YOGA
For your free yoga class visit:
Q
Three years in the City how has
it been?
A
Considering we opened High
Timber just as the recession
kicked in, overall it has been
fabulous. There are so many big
characters in the City; the restaurant
always seems to have a buzzing and
fun atmosphere.
Q
Whats been great and whats
been hard?
A
It is great to see that in such a
short time we have built up quite
a large and loyal customer base.
Working with such great food and
wine suppliers has also been
reassuring for us. It was not the
easiest time to open in 2009 the
City lost a lot of employees and many
were wary of the economy. I think
having had the same core staff since
we opened makes life a lot easier.
Q
Whats your favourite part about
being a City restaurant?
A
I just love the City. Its full of
people working to keep the rest of
the country alive, they work and play
hard and know exactly what they
want to eat and drink. The City has a
certain charm I will never get tired
of. I think having the Thames on our
doorstep helps to lend a certain
amount of escapism too.
Q
So its true: City folk
love meat?
A
Yes, on the whole, meat always
goes down well, a trend I think
that has only increased in the
recession as City workers look to
warming and hearty comfort food
during their lunch. They love quality
and our Lake District cows taste
superb. Our T-Bone should get its
own Facebook page.
Q
High Timber has a wonderful
spot on the river. Have any of the
customers got too frisky and had
any near-misses with a swim in the
Thames?
A
There are particular times when
we have to be on our guard and
Chef (Justin Saunders) gets out his
red Bay Watch life guard shorts
particularly around Christmas and
New Years Eve. I think perhaps NYE
wins for friskiness they had their
own fireworks. Enough said! It is
true that restaurant staff go blind
and deaf when their customers over-
indulge
Q
You co-own High Timber with
Jordan Winery in Stellenbosch.
Tell us about the unusual High
Timber wine collection and why
your cellar is interesting.
A
We are proud of the South African
connection and offer the largest
range of New World wines of any
City restaurant. Jordan Wines is
making us our own red blend, and
Ken Forrester has already made us a
fuller version of his famous FMC;
FMC Moelleux, especially for High
Timber. Very chuffed. With Gary and
Kathy Jordan we have strong ties
with the best wineries in SA, many of
whom see it as a home-from-home
when they are visiting the UK.
Q
Why do you think people would
want South African wine when
theres so much choice? And
traditionally, professionals like Old
World vino, dont they?
A
A lot of British people have links
with SA, in a business capacity or
a personal one. And increasingly we
find the City far more open to
explore all different types of wine.
We do of course have fabulous Old
World wines for those days when
they want to show the money (or,
more often than not, have lost a
rugby/cricket match against SA).
Q
With lots of competition in
London, how do you keep
attracting customers?
A
We always try to over-deliver.
South Africans are easy going, I
abhor snottiness from waiting staff.
We always do our best to make every
one feel like a regular.
Q
Any tips for getting the most out
of South African wine?
A
Chenin Blanc is one of the best
grapes for food. Whether it is a
light cheapie, or a luscious silky
oaked wine, they tend to make them
very well there.
Q
What are you most excited about
at High Timber?
A
Working next to a passionate head
chef that loves cooking, (Justin
Saunders) we have daily food
excitement. We are looking at ways
of making our terrace even more
relaxing to de-stress our regular
clientele over the commuting
nightmare that will be the Olympics.
When the sun is out for real I will do
a proper braai on the terrace on
Saturday afternoons.
High Timber is at 8 High Timber Street,
EC4V 3PA, tel: 020 7248 1777,
www.hightimber.com
Zoe Strimpel
Neleen Strauss with chef Justin Saunders at High Timber, which has the biggest collection of New World wine in the City
Boisdale of Bishopsgate
A City institution, this Scottish-themed
restaurant is owned by the exuberant
personality Ranald Macdonald. Its where
Square Mile stalwarts go to do business
over the finest single malts, Scottish
seafood and the very best steak in an
atmospheric bar and tartan-tastic dining
rooms. Boisdale also has restaurants in
Belgravia and Canary Wharf. 202
Bishopsgate, EC2M 4NR,
tel: 020 7283 1763
Barbecoa
Jamie Olivers outpost at One New
Change is a fantastic place for meat-
lovers, with divine pulled pork, burgers
and steaks. If you are in any doubt about
the quality of the meat served, check out
the Barbecoa butcher, which is full of a
variety of meat to make carnivores weep.
20 New Change Passage, EC4M 9AG, tel:
020 3005 8555
Coq DArgent
Where the young crowd go to let down
their hair after work, Coq DArgent boasts
unrivalled views of the City rooftops from
its beautiful terraces. There is not better
place in town for a glass or three of
Champagne on a summers day. 1
Poultry, EC2R 8JR, tel: 020 7395 5000
Chamberlains
One of the Citys choicest spots for fresh
seafood, Chamberlains in Leadenhall
Market sources its fish from Billingsgate
Market and offers everything from tip top
fish and chips to more ornate fare. A
great wine list tops off the experience.
23-25 Leadenhall Market, EC3V 1LR, tel:
020 7648 8690
The Bleeding Heart
A favourite among Clerkenwell
gourmands, this French eaterie also has a
bistro for more casual dining and a tavern
for a cheeky drink before dinner. The
main restaurant serves rich, characterful
Gallic food and has a deeply loyal client
base. Expect to drink a glass too many of
rich Bordeaux. 19 Greville Street, EC1N
8SJ, tel: 020 7242 8238
ZS
WHERE TO EAT: FIVE OTHER
SQUARE MILE FAVOURITES
Shopping in
style at the
Citys 10 best
From bespoke tailors to luxurious malls,
Zoe Strimpel picks the best of the bunch
MONDAY 18 JUNE 2012
32
cityam.com
CELEBRATE THE CITY
Londons most delectable chocolatier has shops
in Islington and Soho, but our favourite is the
outpost on Threadneedle Street. Just a stones throw
from Bank, the store is a beacon of temptation, with
its opulent display window and signature purple
exterior. Paul, who has flame-red hair, oversees an
operation in which all chocolate is made in-store and
by hand. He and his
team make the
delectable treats in
small batches using
the very best of
ingredients and the
simplest equipment.
Concentrates,
essences,
preservatives or any
other additives are
not used and the
choccies taste purely
delicious to match.
paulayoung.co.uk
1
Bulgari, Boodles, Smythson,
Tiffany, Lulu Guinnessthe
Royal Exchange is the Citys luxury
shopping outpost. Founded in 1565
by Sir Thomas Gresham as a centre of
commerce and trade, the Royal
Exchange was officially opened by
Queen Elizabeth I in 1571. It has
always been a place of discernment
in the 17th century, stockbrokers
were banned due to their poor
manners, and were made to go about
their business elsewhere. The
original building was destroyed in
the Great Fire of 1669, and its replacement designed by Edward Jarman
was also destroyed by fire in 1828. The third building is what we have
today: designed by Sir William Tite, it harks back to the original
structure of a four-sided building around a central courtyard where
merchants and tradesmen could do business. theroyalexchange.com
3
The Royal Exchange,
Bank
Paul A Young, Bank
Onadeko, Spitalfields Market
A Spitalfields stalwart since
2001, this is one of the Citys
funkiest interiors shops, with
designs manufactured by Calligaris,
Miniforms, Bontempi and
Westminster. With a window-walled
corner spot in Spitalfields Market,
Onedeko has something for
everyone so long as you like
creative pieces. An alarm clock on
wheels that runs away from you in
the mornings; a bible that holds a
flask inside; a foldaway colander
and a chain wine holder are among
the quirkiest. The furniture, of
which there is a full complement, is
sleek and modern from exotic and
elegant lamps and chandeliers to
elegant outdoor furniture and
ingenious space-saving solutions. 7
Horner Square, onedeko.co.uk
5
The construction of One New Change has
restored Cheapside to its position as a central
thoroughfare for tradespeople, shoppers and
coffee-drinkers with a modern twist. ONC is an
architecturally splendid place in which to shop,
eat and talk. Already iconic, and certainly
unforgettable whatever your tastes, the building
was designed by
Pritzker Prize-
winning architect
Jean Nouvel and
sports 6,500 floor-to-
ceiling glass panes in
varying shades of
red, grey and beige,
flooding the floors
with natural light.
Shops include H&M,
Swatch, Banana
Republic and Phase
Eight. onenew
change.com
2
One New Change, Cheapside
Nestled in a maze-like enclave between Lombard Street and
Cornhill sits Cad and the Dandy, a bastion of contemporary City
style, run by a former Barclays private equity employee and an ex
sales-side man at BNP Paribas. Mixing old-fashioned charm an
antique mahogany cutting table, an old leather sofa with a modern
sensibility, its where the Citys sartorial elite go to get dressed.
The business, which has outposts in Canary Wharf and Savile Row,
offers fully bespoke suits starting
at 750 Savile Row style but not
at Savile Row prices. So how does
it work? Cad offers three grades
of tailored suit: machine stitched,
half hand-stitched and fully
hand-stitched. All suits start with
pattern creation, done by hand
and retained for all future
orders. The website features a
snazzy interactive design tool to
help you choose your perfect suit,
but your measurements are done
in person. cadandthedandy.co.uk
Cad and the Dandy, Cornhill
4
MONDAY 18 JUNE 2012
33 CELEBRATE THE CITY
Leadenhall Market
A stunning piece of architecture,
Leadenhall was originally built in
the 14th century market on what was
once the centre of Roman London.
Originally a meat, game and poultry
market, Leadenhall is now home to a
handful of the Citys favourite pubs, as
well as high street fashion shops,
barbers, quirky little businesses and
lunch spots, from a cheese and wine
caf to iconic fish restaurant
Chamberlains.
Most striking about Leadenhall
Market is the beautiful roof an ornate
structure painted green, maroon and
cream, designed in 1881 by Sir Horace
This traditional City tailor is a gem beloved
by the established financial crowd for its
high quality, solid and well-made bespoke suits.
Its the sort of operation the word gentleman
seems to fit perfectly. The head cutter is Russell
Howarth, who has had 23 years tailoring
experience, while Graham Browne himself, the
Savile Row tailor who started the firm over 40
years ago, is still involved in the business.
Expect 20 measurements and figuration details
taken before your personal pattern can be hand-
drafted and cut from scratch. Sound knowledge,
a history in the trade and very high quality
fabrics such as Dugdale Brothers
Huddersfield cloth make this the perfect place
to buy your City suit. grahambrowne.co.uk
6 7
On Queen Victoria Street near a Snappy Snaps, a
newsagent and a juice shop sits this unusual
gallerist. Gladwells art establishment first arrived in the
Cheapside area in 1752 and now offers one of Londons
best selections of oil paintings, watercolours, drawings,
etchings and mezzotints with traditional subjects. This is
not the place to go for abstract work. But for traditional
paintings, Gladwell is a London favourite and has a loyal,
intergenerational customer base. The gallery also restores
pictures and makes frames using locally carved
mouldings some of which are over two centuries old.
The current exhibition features works from Joan Miro,
Claude Monet and Charles Perron. gladwells.org.uk
10
Gladwell & Company
Located in the Royal
Exchange, Searle and Co
has been selling silver and
jewellery to the City for 100
years and has one of the most
interesting selections in
London. The vintage
collection contains the likes
of goblets from Dublin
aristocrats circa 1804, art
deco rings from 1928 in
synthetic sapphire and
diamond, and a silver four-
piece tea set in the style of
Hester Bateman from 1969.
Jewellery for ladies and
gentlemen ranges from the
contemporary and chic to the
more traditional. Quite
literally a City gem among
the army of high street shops
now found in the Square
Mile. Its the perfect place to
find a special anniversary
gift. searleandco.ltd.uk
9
Searle & Co
...And breathe. Stepping
into Jo Malone is stepping
out of the world of stress and
deadlines into a paradise of soft
scents, candle-lit tranquility and
gift paradise. For this reason,
JMs City outpost is particularly
special. Surrounded by
skyscrapers and the hustle and
bustle of Bank, the shops
geometrically arranged array of
bottles and candles is enough to
soothe and inspire even the
most stressed of office workers.
Many of the scents are iconic:
Pomegranate Noir, for example,
is one of the most sensual and
distinct. Limited edition scents
such as velvet Rose and Oud and
Plum Blossom are divine, but
theres a vast array to choose
from whatever your nose. You
can also make your own scents.
For the ultimate gift, splurge on
a giant Jo Malone candle your
home will smell like a spa for
months. jomalone.co.uk
8
Jo Malone
Graham Browne
Jones, the architect behind
Billingsate and Smithfield.
Cobbled floors add a sense of
atmosphere to the arcade,
which appeared in Harry
Potter and the Philosophers
Stone as Leakey Cauldron and
Diagon Alley. Filming for the
Imaginarium of Doctor
Parnassus, Hereafter and
other films also took place
here. Whether youre after a
pint in a vibrant atmosphere,
a fine fish dinner with
champagne or a new
cashmere jumper from Reiss,
Billingsgate is a fantastic
place to go to soak up the
atmosphere of the Square
Mile. leadenhallmarket.co.uk
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Five of the Citys cultural treasures
Zoe Strimpel chooses some history-filled local gems
MONDAY 18 JUNE 2012
34
CELEBRATE THE CITY
cityam.com
Gold and the
Bank of England
Admission free
10am 5pm Monday to Friday. Closed weekends
and public holidays. Entrance in Bartholomew Lane,
London EC2R 8AH. Tel: 020 7601 5545
www.bankofengland.co.uk/museum
22 June 10 November
Some glimpses into the
part gold has played during
the Banks long history and
the Banks role in relation
to gold today.
In the Museum every day:
Find out what the Bank does
Learn about banknote design
Try to lift a gold bar
Audio visual displays
Museum shop
London Metropolitan Archive, Northampton Road, Clerkenwell
This is a true treasure trove archive heaven
for anyone interested in the Citys fascinating
history. Its got an extraordinary range of
collections and records about the capital, and
also runs a wide selection of talks, guided
tours, film screenings and exhibitions. The
archive is one of the oldest, most complete
and wide ranging civic archives in the world.
It dates from 1067, with a Charter of William I,
and traces the history of the City through a
thousand years, encompassing civil war, fire
and other unrest. The Citys unique role in
national life with its traditional ceremonial
role and emergence in the twentieth century
as a leading local authority is documented
here. cityoflondon.gov.uk/lma
Goldsmiths Hall is the official home of the Worshipful
Company of Goldsmiths, one of the Citys 12 livery
companies. Rebuilt in 1835, it is the third Hall on this
site. Founded to regulate the craft or trade of the
goldsmith, the Goldsmiths' Company has been
responsible since 1300 for testing the quality of gold,
silver and, from 1975, platinum articles. Indeed, the
Trial of the Pyx (testing the metallic composition of
coins from the Royal Mint) dates back to the 12th
century. The Hall also hosts wonderful, if niche,
exhibitions: the current one is Gold: Power and Allure,
4,500 years of gold treasures from across Britain.
thegoldsmiths.co.uk
The theatre, which offers fun lunchtime shows
(bring a picnic), is part of the St Bride
Foundation, which was established in 1891 to
meet the social and cultural needs of a
community working within the flourishing print
industry. Although the printing presses have
moved away, the Foundation remains a Fleet
Street institution, and includes exhibition
spaces, a theatre, educational centre and one of
the most significant collections of typography
and historical printed reference in the world.
Situated in the narrow streets surrounding St
Brides Church, its an atmospheric, charming
venue look out for David Copperfield
performed by the Tower Theatre Company, 24-
28 July. stbridefoundation.org/bridewelltheatre
An 18th century Grade 1-listed Hawskmoor church on Old
Street, LSO St Lukes is an exquisite alternative to the Barbican
(the LSOs headquarters) and a hive of non-stop musical
activity. Its home to the UBS and LSO Music Education Centre
as well as LSO St Lukes and LSO Discovery, ensuring an
incredibly diverse stream of projects and concerts is always in
house. LSO St Lukes holds weekly lunchtime concerts as well
as evening performances with the best from the chamber
music and orchestral worlds as well as funky modern work
such as break dancing and Norwegian goat horn music.
lso.co.uk/visitinglsostlukes
Near Liverpool Street, this impressive
building is home to a huge variety of
courses and events, from yoga to
French, and has a library with world-
renowned collections on London
history, labour and socialist history,
protest and campaigning. Current
courses include creative writing, belly
dancing, and introductory European
art history. Events range from
scriptwriting to architectural tours of
the Grade II listed building. A centre of
learning in the Square Mile.
bishopsgate.org.uk
Goldsmiths Hall, Foster Lane, St Pauls
London Symphony Orchestra, St Lukes, Old St
Bishopsgate Institute,
Bishopsgate,
Liverpool Street
Bridewell Theatre, Bride Lane, Fleet Street
35
TV & GAMES
cityam.com
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BBC1
SKY SPORTS 1
7pmLive T20 Cricket 10.30pm
Youre on Sky Sports! 12am
Footballs Greatest Managers
12.30amT20 Cricket 2.30am
Sports Unlimited 3.30am
Watersports World 4.30amMax
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7pmCriminal Minds 8pmPushy
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BBC THREE
7pmWorlds Craziest Fools
7.30pmMatch of the Day Live:
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Comedy Empire 10.30pmSnog,
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1amChris Moyles Comedy
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E4
7pmHollyoaks 7.30pmLove
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7pmStorage Wars 7.30pmPawn
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Pickers 11pmStorage Wars
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DISCOVERY
7pmBear Grylls: Born Survivor
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7pmA Wedding Story 8pmI
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7pmThe Simpsons 8pm
Road Wars 9pmA League of
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11.10pmRoss Kemp: Extreme
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1.10amArmed and Dangerous:
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Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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6pmBBC News
6.30pmBBC London News
7pmCHOICE Match of the
Day Live: Euro 2012
10pmBBC News
10.25pmRegional News
10.35pmTrue Love
11.05pmThe Graham Norton
Show
11.50pmFILMThe Lonely
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1.15amWeatherview1.20amSign
Zone: Antiques Uncovered 2.20am
The Little Paris Kitchen: Cooking
with Rachel Khoo 2.50am
Chaplains: Angels of Mersey
3.20amGreat British Menu
4.20am-6amBBC News
6pmEggheads
6.30pmGreat British Railway
Journeys
7pmThe Hairy Bikers: Mums
Know Best
8pmNatural World: Unnatural
History of London
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the Monarchy
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10.30pmNewsnight; Weather
11.20pmSecrets of Our Living
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4am-6amBBC Learning Zone
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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
24
10 11
45
20 26
17 22 6
15 23
45
7 17
14 11 9
15 24
45
27 12
28
21
16
14
22
16
19
6
4
8
25
45
29
13
12
14
12
16
38
30
11
9
13
ACROSS
3 Ray of natural
light (7)
6 Biting tools (5)
8 Speed by which
the population
declines (9)
9 Main (5)
10 Deep serving
bowl (6)
13 Musical
composition (4)
16 Killed (4)
18 Climb (6)
20 Frameworks for
holding objects (5)
22 Careless,
inattentive (9)
23 Stir up (a re) (5)
24 Sculptures
representing
humans or
animals (7)
DOWN
1 Type of plaster applied
to exterior walls (6)
2 Boring,
monotonous (7)
3 Aggressive remark
directed at a person
like a missile (5)
4 Commits to a
grave (6)
5 Bring into harmony
with (6)
7 Quoits target (3)
11 Container for
ashes (3)
12 Citizen who has a
legal right to vote (7)
14 Father or mother (6)
15 Engrave (6)
17 Flat disk used as a seal
to prevent leakage (6)
19 Clothing (5)
21 Insect (3)
O
L
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H S
D
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4
4

E T O W N C R I E R
T O Y H N
H A I F A A R G O T
I L I T E R A L H
C L E F T S M E A R
A T P E
L A S E R C A R D S
L P E E R A G E H
Y A R N S B E A N O
I I L C L
M I G H T I E S T D
7 2 1 3 6 9 8
8 1 6 2 5 4 7 9 3
9 5 1 4 3 5 1
7 9 4 8 6 7 8
5 3 8 2 1 7
1 4 7 5 6 3 8 9 2
4 2 1 9 7 5
2 7 1 3 2 6 4
1 3 2 9 8 8 4
8 9 4 1 7 3 5 6 2
8 9 3 1 2 5 3
4
4
4
4
4
4
4
4
4
The nine-letter word was
CAPTIONED
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
MONDAY 18 JUNE 2012
MATCH OF THE DAY LIVE: EURO
2012 BBC1, 7PM
Italy v Republic of Ireland or Croatia v
Spain (Kick-off 7.45pm). Gary Lineker
presents coverage of one of the final
Group C fixtures.
SOUNDS OF THE 70S 2 PUNK
ANARCHY ON THE BBC BBC2, 10PM
Performances by punk and punk-
influenced bands, including X-Ray
Spex, Joy Division, the Damned, the
Undertones and the Buzzcocks.
BENIDORM
ITV1, 9PM
Mick upsets Janice during a trip to
the Callosa waterfalls and Brandy
plays a practical joke on Martin that
exposes his gullible side.
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TODAY'S MATCHES
13/2 Croatia 13/8 Draw Spain 4/5
Group C, Kick-off 7.45pm, Live on BBC3
2/7 Italy 9/2 Draw Rep of Ireland 17/2
Group C, Kick-off 7.45, Live on BBC1
FIRST GOALSCORER
9/2 F. Torres (S)
6/1 C. Fabregas (S)
6/1 D. Silva (S)
8/1 A. Iniesta (S)
12/1 Xavi (S)
12/1 N. Jelavic (C)
12/1 M. Mandzukic (C)
14/1 Eduardo (C)
FIRST GOALSCORER
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9/2 A. Di Natale (I)
5/1 A. Cassano (I)
9/1 A. Pirlo (I)
12/1 R. Keane (ROI)
14/1 S. Long (ROI)
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R
OYAL Ascot will once
again host a strong
international raiding
party when the worlds
most famous five-day meeting
gets underway tomorrow.
Horses and jockeys now regu-
larly travel to Berkshire from
throughout Europe and from as
far afield as Japan, Hong Kong,
New Zealand, South Africa and
the USA. However, its the visit
of one Australian mare that
threatens to grab all the head-
lines in the days to come.
Black Caviar, the unbeaten
sprinting sensation, is rated the
worlds second best horse
behind Frankel on the back of
21 straight wins. She bids to
extend that record on Saturday
by recording her 12th success at
Group One level in the six fur-
long Diamond Jubilee Stakes for
which she is 1/3 with Coral.
The six-year-old mare exer-
cised in front of the media late
last week and all seems to be
going to plan. The boys have
been happy and she has been
eating and sleeping normally,
reported Jeff OConnor, racing
manager for her trainer Peter
Moody. Weve covered a lot at
home and achieved everything
we wanted to achieve there, he
added. Coming here is not
about the prize money, theres a
prestige in winning at Ascot -
that is a pretty big thing.
Black Caviar reportedly took
the flight over in her stride,
although she did lose the
expected 9-10 kilos during the
30 hours in transit. However,
she is eating and drinking as
normal now and is due to line
up on the weekend at her nor-
mal fighting weight.
Connections dont seem too
concerned about the recent
rain, even though the wonder
mare has never raced on a slow
or heavy track at home. Weve
seen her have a lot of gallops at
Caulfield on those winter morn-
ings and shes coped with that
every time, OConnor reas-
sures. She had a race trial at
Cranbourne before she started
racing and did a super time in
the heavy going that day.
He does, however, admit that
we are nearer the end of Black
Caviars racing career than the
beginning and that she might
soon tell us all that she wants a
bit of peace and quiet: At the
moment she loves the cameras
and enjoys being a racehorse,
but one day she might just turn
up and say I have had enough.
OConnor is also keen to play
down the Anglo-Australian
rivalry. I am really happy at the
welcome Black Caviar has got in
England. For me, its not about
her beating the Poms, an angle
which has been put forward. I
am thrilled that Black Caviar
and Frankel are racing at Royal
Ascot in the same week and we
can adore them both. We just
want to turn up and compete,
he said.
One thing for certain is that if
the real Black Caviar does turn
up, shell take some catching.
THIS years Royal meeting
couldnt kick off with a much
bigger bang than Frankel in
tomorrows opening Queen
Anne Stakes, but that race is
immediately followed by two
other Group One contests.
Well be taking a detailed look
at the card in tomorrows
newspaper and will
concentrate on trying to
unearth some interesting
special bets today.
The top jockey market is
much more my cup of tea
than the colour of the Queens
hat and Im keen to oppose
the current favourite, Joseph
OBrien, who is as short as 6/4.
The angel-faced assassin has
had a season to remember and
he is understandably high up
the list with the firepower
Ballydoyle have at their
disposal. However, he will
miss out on Fame And Glory,
perhaps the stables biggest
banker of the meeting, and he
is yet to win a race at this
unique course.
Richard Hughes is always to
be feared at this meeting and
he will have the pick of
Richard Hannons two-year-
olds. That said, there doesnt
appear to be a certainty like
Canford Cliffs in their squad
this time and although I
expect him to ride plenty of
placed finishes, winners may
be hard to come by.
If Ryan Moore can stay
injury free this season, he will
surely claim his jockeys title
back, but this week could be
difficult for him. OBrien will
be taking the big Coolmore
rides and with Sir Michael
Stoute still struggling for
winners, Moore is passed
over at 4/1.
The one jockey who I
still feel is overpriced at
the moment is WILLIAM
BUICK and the 10/1
available with Ladbrokes
should be snapped
up. No one is
riding better than
the 23-year-old at
the moment and
John Gosdens
stable continues
to be in red hot
form. Buick will
also pick up
some decent
spare rides and
he has a solid chance of
picking up three or four
winners, which could be
enough to land the prize.
Of the others, Johnny
Murtagh has to be of interest,
as he is often the go-to man
for a number of top British
trainers. He rides the track
brilliantly, but he wont have
as strong a book of rides as in
previous years. Tom Queally
will surely be on the board
after Frankel does the
business in the opener
and quotes of 20/1 may
slightly underestimate
his chances.
The top trainer market
doesnt look quite as
open, as Aidan OBrien
should be pretty difficult
to beat. Hes as short
as 4/6 and, although
I wouldnt be
taking that price,
Im struggling to
find one to
oppose him
with. Champion
trainer Richard
Hannon is next
best at 5/2, but
that isnt big enough
to tempt me. Gosden is
slightly interesting at 10/1
with William Hill and if I was
to have a bet on this market it
would be him.
There is still plenty of
uncertainty over ground
conditions and with rain
forecast over the next couple
of days, ante-post betting at
this late stage can be a
dangerous pastime. That said,
I think there is value in
backing French raider
MOONLIGHT CLOUD each-
way at 15/2 with Paddy Power
for Saturdays Diamond
Jubilee Stakes. Black Caviar
will take plenty of stopping,
but Freddie Heads French
raider is pretty smart in her
own right and can shake-up
the Aussie sprint sensation.
Dont forget we will be back
every day this week with in-
depth Royal Ascot coverage
and you can also follow me on
Twitter @BillEsdaile.
MONDAY 18 JUNE 2012
36
THEPUNTER
RACING TRADER
BILL ESDAILE LOOKS AHEAD TO THIS WEEKS ROYAL ASCOT MEETING
nPointers
William Buick top jockey at 10/1 with
Ladbrokes
Moonlight Cloud e/w 15/2 with Paddy Power
Diamond Jubilee, Saturday
Ascot ready to welcome
Australian
sprinting
sensation
Black Caviar
Buick is the value at 10/1 to be crowned top jockey for the first time
Unbeaten Australian mare Black Caviar, trained by Peter Moody, will aim to win her 22nd consecutive race in Saturdays Diamond Jubilee Stakes in Berkshire
G
E
T
T
Y
BRITAINS Cal Crutchlow
bemoaned that only a broken
ankle cost him a place on the
podium at yesterdays Moto
GP at Silverstone, after he
defied doctors orders to
compete in the race.
Crutchlow produced
a heroic perform-
ance, moving from
the back of the grid
to finish sixth in
front of a cheering
home crowd, despite
dislocating and frac-
turing his ankle
in qualifying.
It was a tough
day, and a shame I
couldnt have been
at the front of the
grid because I would have
been on the podium,
Crutchlow said, admitting
that his weekend had been a
bit emotional.
Im pleased, we did a good
job, Crutchlow added after
the race. It was a long day [on
Saturday when the crash hap-
pened], they told me I wasnt
allowed to ride at the hospi-
tal. The 26-year-
old was forced to
start in 20th
place, after
his crash
p r e -
vented
h i m
from completing qualifying.
The race was won comfort-
ably by Yamahas Jorge
Lorenzo, who held off nearest
rival Casey Stoner to claim his
fourth win of the season.
This victory is fantastic, the
season we are doing is just
perfect, we cant ask for
more, Lorenzo said. Fighting
with Casey, I enjoyed it a lot.
The Spaniard leads Stoner by
25 points in the drivers Moto
GP standings, while Stoners
Honda colleague Dani
Pedrosa, who came third at
Silverstone, stays third.
Crutchlow, who races for
Monster Yamaha Tech 3, is
fourth place, with 66 points.
ARGENTINAS David Nalbandian yes-
terday provoked controversy amid
the usually quaint surroundings of
Queens after he was disqualified for
kicking an advertising board into a
line judges leg, drawing blood from
the officials shin.
The final of the Aegon
Championships, widely seen as a
warm-up to Wimbledon, ended bit-
terly as chair umpire Fergus Murphy
dismissed Nalbandian for unsports-
manlike behaviour, thus granting
victory to opponent Marin Cilic.
With Nalbandian leading 1-0 in
sets, the world No39 missed a run-
ning forehand and booted the adver-
tising board in frustration. Line
judge Andrew McDougall was left
bleeding profusely by the incident.
At the time Cilic was trailing
Nalbandian, having lost the first set
7-6 (7-3) on a tie break, with the sec-
ond set tied at 3-3.
Deprived of a full matchs enter-
tainment, the sell-out crowd booed
and chanted play on, but the offi-
cials stuck by their decision.
Addressing the crowd during an
awkward post-match ceremony,
Nalbandian was contrite yet also
appeared to blame tenniss govern-
ing body, the ATP.
I am very sorry. Sometimes you
get very frustrated on court. Its a
tough moment to end a final like
that but sometimes we feel so much
pressure from the ATP playing so
many tournaments, he said.
Arguing that the final should not
have been stopped, Nalbandian
added: The rule book is very big and
I can tell you the ATP do a lot to the
players and nothing happens.
Yet senior Queens official Chris
Kermode said there was no option
but to end the game. Theres not a
lot we can do about it. We are under
the governance of ATP rules. Youd
like to think you can bend the rules
but [then] it sets a precedent.
Line judge McDougall was quite
seriously injured in the incident,
Kermode added.
IN BRIEF
Federer loses to Haas in Halle
n TENNIS: World No3 Roger
Federer stumbled in his
preparations for Wimbledon
yesterday, losing the Gerry
Weber Open final in Halle.
German wildcard Tommy Haas
completed a dream tournament
by beating Federer 7-6 (7-5) 6-4.
If someone had said before that
I was going to beat Roger
Federer probably the best
player of all time I would have
thought they were mad,"
Haas said.
MVila drops Gunners hint
n FOOTBALL: France
international midfielder and
Arsenal target Yann MVila has
admitted he is interested in
joining the club for next season.
I have heard Arsenal are
interested in me, he said. I like
Arsenal and I like the Premier
League. I dont know what is
happening with the clubs, but
yes, I would be interested in the
Premier League and Arsenal.
Cook to continue attacking
n CRICKET: England captain
Alastair Cook will stick with his
attacking tactics for the second
one-day international against
West Indies tomorrow. It makes
it very hard for the opposition to
get away from us, Cook said,
after Englands bowlers repaid
his faith by bowling West Indies
out for 172 on Saturday.
Ireland duo to miss final Test
n RUGBY UNION: Ireland will be
without centre Gordon DArcy
and No8 Jamie Heaslip for
Saturdays final Test against New
Zealand after suffering
respective calf and finger
injuries. Ulsters Paddy Wallace
will replace DArcy, though no
one will be called up for Heaslip.
Queens finalist David Nalbandian, of Argentina, criticised the ATP
TOUR de France hopeful Mark
Cavendish secured a morale-
boosting victory in the run up
to the epic event yesterday,
grabbing his first-ever general
classification win.
Cavendish, Britains world
champion cyclist, took the Ster
ZLM Toer for Team Sky,
holding onto the yellow jersey.
Radobanks Lars Boom came
in second, eight seconds
behind Cavendish.
I wanted to be in my best
form and am definitely in it so
Im looking forward to France
now, Cavendish said.
The Tour de France begins
on 30 June in Belgium.
Cavendish
wins Tour
warm up
BY SPORTS DESK STAFF
BY JULIAN HARRIS
Cal Crutchlow dislocated and fractured
his ankle in qualifying on Saturday
SPORT 37
MONDAY 18 JUNE 2012
cityam.com
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ZZ rars. D@;C8E;J>IFLGNXin`Zbj_ì\m>cXdfi^Xe
(T|e SwAlEO St+|am)1NXin`Zbj_ì\ 45 (8.O a1ers,
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Efik_Xdgkfej_ì\ J5 (ZO.O a1ers). Jfd\ij\k 45
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On LIe subjecL oI bunkers, II you
Iuncy boLI Irunkel und Bluck
Cuviur Lo wIn LIIs week, we`ve goL
u specIuI prIce on LIe doubIe. I
you ure u bunker, you muy uIso be
Iuppy Lo Ieur LIuL we wIII luy uny
horse in uny ruce ut Royul
Ascot to lose go,ooo. SLur
SporLs Isn`L IIke every oLIer book-
muker us we oIIer LIe mosL
personubIe, prIvuLe, IrIendIy und
proIessIonuI LeIepIone debIL und
credIL beLLIng servIce uvuIIubIe.
So, II you`re IookIng Ior u reIresIIng
cIunge, you cun open un uccounL by
cuIIIng oSooo g1 1 or by vIsILIng
www.stursportsbet.co.uk.
AILernuLIveIy, II you`re goIng Lo
AscoL, LIen pIeuse come und suy IeIIo
us we ure once uguIn stunding in
the ring.
__________
WINNER
MOST CREATIVE
MARKETING CAMPAIGN
__________
1 think he thought 1
uos o honker. Well
thot's uhot he
shouted onguog!
Crutchlow: Injury cost me
Bad blood at Queens as final
is ruined by Nalbandian kick
BY JULIAN HARRIS
G
E
T
T
Y
Van Marwijk: Blame me
for Hollands early exit
ENGLAND striker Wayne Rooney is
adamant he and his team-mates will
be fully prepared for a hostile crowd
away to Ukraine in Donetsk as it
is nothing they have not
experienced before.
Victory over Sweden on Friday
night means England need only a
point against Ukraine to advance to
the European Championship
quarter-finals and though the
atmosphere is expected to be as
intense as anywhere in world
football, the talented talisman is
unconcerned about its ability
to unsettle.
Theyll obviously have the
majority of the support and the
majority of the fans in the stadium,
said Rooney. [But] weve been in this
situation before. Weve been to a lot
of stadiums around Europe and
HOLLAND manager Bert van
Marwijk accepted the blame for his
sides shock early elimination from
the European Championship after
their third defeat from three became
the devastating denouement of a
woeful campaign.
The recalled Rafael van der Vaart
scored for Holland before Cristiano
Ronaldo inspired a Portuguese
victory that finally justified his
reputation as the countrys sole
hope. The forward scored twice and
shamed the Dutchs ultimately
superior talent with a hunger that
suggested a season of success with
Real Madrid has failed to dim his
personal ambitions.
Portugal now advance to a
favourable quarter-final against
Czech Republic while Holland,
World Cup finalists just two years
ago, return home to be scrutinised
for their pitiful performance.
We had to win with a two-goal
difference so we had to take a risk, it
started well but then it didnt go to
plan, said Van Marwijk, already
unpopular with many for his less-
than-purist approach. We are
disappointed we did not play well. I
am disappointed, I am responsible.
Today we opened the scoring but
then you have to keep that
advantage to force your opponent to
take more risks. Again we proved not
able to do that and then we gave the
goals away too easy. I am responsible
and therefore failed at this
tournament but at this moment I
am not thinking about my future.
It was in the 11th minute when
Van der Vaart controlled Arjen
Robbens pass before curling a
superb left-footed effort beyond the
despairing dive of Portugal
goalkeeper Rui Patricio, but play
thereafter became as shapeless as
the tournament has known.
Joao Pereiras masterful through-
ball left Ronaldo with a simple
placed finish in the 28th-minute
before the latter showed similar
composure to calmly finish a swift
break 15 minutes from the end.
around the world, and weve had to
deal with this atmosphere on a lot
of occasions.
England manager Roy Hodgson
has all but confirmed Rooneys
return following the conclusion of
his suspension and with Ukraine
needing to win the strikers
experience will be crucial. The
Manchester United man played
alongside Ashley Cole, John Terry
and captain Steven Gerrard when
England drew 0-0 away to Turkey in
2003 to qualify for Euro 2004 and
believes overcoming that challenge
ideally prepares them for tomorrow.
If you look at Turkey away nine or
10 years ago, it was as hostile as
youre going to get, he said. So we
understand theres going to be a big
atmosphere and its something we
have to deal with.
Were big enough and
experienced enough to deal with it.
MONDAY 18 JUNE 2012
38
SPORT
cityam.com/sport
BY DECLAN WARRINGTON
ENGLAND manager Roy Hodgson
admits winger Theo Walcott may
start tomorrow against Ukraine if
he can recover from the recurrence
of a hamstring injury he suffered
yesterday in training.
Walcott scored Englands
equaliser and set up their winning
goal in the 3-2 victory over Sweden
after coming off the bench and
Hodgson hopes to have him ready.
Whether or not he is a real
contender will depend on what the
medical people can tell me and
how much guarantee they can give
that he wont be leaving the field
after five minutes, said Hodgson.
Hodgson hopes to start Walcott
BY SPORTS DESK STAFF
@cityam_sport
GIVING YOUR ALL FOR ENGLAND
drinkaware.co.uk
for the facts
Enjoy Responsibly
Enjoy the match with your mates and a
Carlsberg 4x 568ml
Offers available at participating stores only, excluding ROI and Scotland, subject to availability.
E & OE. N.B. Some variants may not be available in some stores. Offers ends from 20th June 2012.
4.50
at

England striker Wayne Rooney is again available for selection following his suspension
PORTUGAL.................................2
HOLLAND....................................1
EURO 2012
Germany 3 3 0 0 5 2 9
Portugal 3 2 0 1 5 4 6
Denmark 3 1 0 2 4 5 3
Holland 3 0 0 3 2 5 0
GROUP B
TEAM PLD W D L F A PTS
Rafael van der
Vaart was recalled
to Hollands
starting line up
against Portugal
Antagonistic atmosphere wont
bother England, insists Rooney
39
Lars Bender scored the winner to give Germany maximum points from Group B
GERMANY coach Joachim Low last
night predicted that Greece will
prove a tough nut to crack, after
his team set up a quarter-final
against the 2004 winners
scheduled for Friday.
Lows men finished top of Euro
2012s Group B on maximum
points thanks to a late winner
from Lars Bender. But for much of
the game the Danes held out, after
Lukas Podolskis first-half opener
was matched by an equaliser from
Michael Krohn-Dehli.
Against Greece, it will be a
completely different match.
Nevertheless, they play a very
similar game to the Danes. They
are very dangerous in attack and
strong in defence, Low warned.
Germany got off to a good start
last night, however. On 19 minutes
Thomas Muller received
possession deep inside the box and
turned to pull the ball back across
goal where it skimmed off Mario
Gomezs boot and found the
oncoming Podolski, who drilled
in from eight yards.
The new Arsenal signing
reeled away, celebrating a goal
that also marked his 100th
international appearance for
Germany. He became the
youngest European to reach a
century of caps.
Yet the plucky Danes refused
to give up, and just six minutes
later drew level from a well-
drilled set piece.
Full-back Lars Jacobsen took a
corner from the right hand side
which found another Arsenal
forward Nicklas Bendtner
who had pulled away from the
pack. Bendtner headed back
across goal for his diminutive
strike partner Krohn-Dehli to
nod in from close range.
And Bendtner could have had
a penalty thirty minutes into the
second half, when his shirt was
tugged by centre back Holger
Badstuber, as he tried to latch
onto a high ball into the box. But
referee Carlos Velasco Carballo
waved play on, and four minutes
later the Danes were behind.
The energetic Bender ran onto
the end of a loose diagonal pass
and rolled the ball beyond
Stephan Andersen to grab all
three points for Germany.
Youll never beat the Irish? Its time for that song to be
put away because everyone is beating them. Im sick
of this win, lose, were on the booze mentality
cityam.com
MONDAY 18 JUNE 2012
ENGLAND coach Stuart Lancaster is
confident about the ability of
Harlequins scrum-half Danny Care
to replace Ben Youngs after the
latters shoulder injury ruled him
out of the remainder of the tour of
South Africa.
Care was dropped for the Six
Nations because of several off-field
incidents but has since been
recalled and, after impressing in last
weeks mid-week match against
Southern Barbarians, Lancaster
believes him to be a capable deputy.
It wont be any disruption, said
Lancaster, who also has scrum-half
brothers Lee and Karl Dickson to
choose between to play at nine for
Saturdays third Test against South
Africa in Port Elizabeth.
Both Danny and Lee know the
game plans. I didnt need any get-out
clause to make any selection
decisions it gives us an opportunity
to look at Lee and Danny.
The loss of Youngs is a substantial
setback for England. The scrum-half
impressed throughout Saturdays 36-
27 loss in Durban and scored two
tries, though he was ultimately
unable to prevent a series defeat.
South Africas Willem Alberts and
Pat Lambie are also doubts, but will
both be assessed this week.
Germany wary of dangerous
quarter-final against Greece
Lancaster eyes Care to replace injured Youngs
T
h
e

n
e
w

j
o
b
s

w
e
b
s
i
t
e

f
o
r
L
o
n
d
o
n

p
r
o
f
e
s
s
i
o
n
a
l
s
C
I
T
Y
A
M
C
A
R
E
E
R
S
.
c
o
m
DENMARK...................................1
GERMANY ..................................2
BY JULIAN HARRIS
EURO 2012
Former Republic of Ireland captain Roy Keane on their European Championship campaign
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