BUSINESS WITH PERSONALITY

Facebook is
set for record
breaking IPO
FACEBOOK is set to become the
third largest float in US history later
today, after pricing its shares at $38
each giving the social network a
$104bn (65bn) valuation and rais-
ing an eye-watering $16bn.
Only General Motors and credit
card firm Visa have had bigger IPOs
and the offering gives the eight-year-
old company, founded in a Harvard
bedroom, a valuation equivalent to
Amazon.com and exceeding that of
Hewlett-Packard and Dell comput-
ers combined.
The valuation means that founder
Mack Zuckerberg will be worth
around $19bn before the substan-
tial gains in share price that are
expected today. The float comes at
the end of a week that has seen
the IPO jump in both size and price
as Facebook struggled to meet
demand for its shares.
On Wednesday the firm increased
the size of the offering by almost 25
per cent to 421m shares, while the
day before it had raised the target
price range to between $34 and $38
per share, up from $28-$35.
Even that was not enough and last
night analysts were speculating on
how much the stock will rise on its
first day of trading.
I think anything over 50 per cent
will be considered a successful offer-
ing, said Jim Krapfel, an analyst at
Morningstar. A lot of retail
investors are not concerned about
valuation. Thats what is going to
drive the first day pop.
Lee Simmons at Dun & Bradstreet,
was more modest: Youve got a
large offering at an increased price,
so a huge pop may be difficult to
achieve. Id think a 10 to 20 per cent
pop over the offer price is expected.
Spanish Prime Minister Mariano Rajoy is struggling with soaring borrowing costs as contagion spreads
SIXTEEN Spanish banks and four of
the countrys regions were downgrad-
ed by ratings agency Moodys last
night as the sovereign debt crisis
spread from Greece to the Eurozones
larger troubled economies.
The rating agency slashed the
long-term debt and deposit ratings of
the embattled countrys banks by
between one and three notches
including those of its largest lenders
Banco Santander and BBVA, and
kept seven of them on review for
further reductions.
Moodys also downgraded
Santander UK to reflect its link to
parent company Banco Santander,
but said at A2 its rating was one
notch above that of its parent. It also
pointed out that Santander UK had
no direct exposure to the Spanish
government (or regional
governments), and said the FSA was
unlikely to allow Santander UK to
substantially weaken itself in order
to support its parent.
Moodys blamed the renewed
recession, a dramatic deterioration
in the countrys property portfolio,
funding difficulties and the reduced
ability of the Spanish government to
support its lenders as its own
creditworthiness diminishes, for the
move.
The downgrade came as Spains
government was forced to pay
extraordinarily high interest rates to
borrow money yesterday as fears of
www.cityam.com FREE
contagion grew, while shares in its
fourth-biggest lender Bankia
plummeted. Both the bank and the
government were forced to deny
rumours of a 1bn (0.8bn) run to
withdraw money from the bank,
which pushed shares down another
14.08 per cent.
Bankias stock losses total 40 per
cent in the last month.
Despite being part-nationalised
just last week at a cost of up to
10bn, analysts still expect the bank,
and the whole sector, to have to
make more provisions against real
estate losses.
Meanwhile, the Spanish
government tried to sell 4.5bn in
three- and four-year bonds yesterday,
but only raised around 2.5bn due to
low demand.
It had to pay a yield of 4.876 per
cent on three-year debt, up sharply
from 4.037 per cent earlier this
SHAREHOLDER SPRING HITS CAIRN AND PRUDENTIAL
BY JAMES WATERSON
FTSE 100 5,338.38 -66.87 DOW 12,442.49 -156.06 NASDAQ2,813.69 -60.35 /$ 1.58 -0.01 / 1.24 -0.01 /$ 1.27 unc
BY TIM WALLACE
AND KATIE HOPE
ISSUE 1,635 FRIDAY 18 MAY 2012
BLUES HEAD
FOR MUNICH
See Page 30-31 See Page 3
Certified Distribution
02/04/2012 till 29/04/2012 is 100,668
CITYREVOLTCONTINUES
Spanish 10-year bond yields spiked
Apr May Mar
5
5.5
6
6.5
% 6.314
17May
Bankia stock plunged again yesterday
18Apr 24Apr 30Apr 8May 14May
2.2
2.4
2.6
1.8
2.0
2.8

1.422
17May
month, and 5.106 per cent on the
four-year bonds, far higher than the
3.374 per cent paid on a similar
auction in March.
Ten-year yields rose to 6.314 per
cent levels last seen in December,
before the European Central Bank
eased market tensions by pumping
1 trillion in cheap loans into
Europes banking system. The cost of
credit default swaps on five year
bonds rose 13 basis points (bp) to an
all time high of 553bp, also
reflecting the increased risks of
lending to the country.
Spains banks have been brought
to their knees by a huge, speculative
real estate bubble to which the banks
had, and still have, large exposure,
said Ted Scott from F&C Investments.
The Spanish government will
probably be forced to pour more
money into the banks before being
prevailed upon to seek assistance
from the Eurozone bailout fund and
the IMF.
As chaos struck Spain, Fitch
slashed Greeces credit rating deeper
into junk, from B- to CCC, to reflect
the heightened risk that [it] may not
be able to sustain membership of the
monetary union and warned that
all Eurozone members would be at
risk of a downgrade if Greece exited.
The concerns pushed the IBEX
down 1.44 per cent, while the FTSE
100 dropped 1.25 per cent a six-
month low. Italys FTSE MIB fell 1.69
per cent, while on Wall Street the
Dow Jones fell 1.2 per cent.
NOWSPAINFEELS
THE EURO PAIN
G
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Y
MORE ON FACEBOOK: Page 6, 23

MORE ON EUROZONE: Page 2, 4, 22

allister.heath@cityam.com
Follow me on Twitter: @allisterheath
G
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Recovery could be helped
by more QE, says Cameron
PRIME Minister David Cameron said
yesterday that there is scope for even
more monetary stimulus from the
Bank of England, putting him at
odds with a senior Bank official.
Our responsible fiscal policy is
being matched by active monetary
policy, Cameron enthused.
And the independent Bank of
England is able to do more to sup-
port the economy if necessary or if
inflation falls below their target.
Yet inflation stuck at 3.5 per cent
on the latest consumer price index
(CPI) measure, and this week the
Banks Inflation Report warned that
it could stay above target until the
third quarter of 2013.
To date the CPI has remained above
the Banks two per cent target for 28
months in a row.
We are mindful of that and we
dont want to take risks with credi-
bility, senior Bank director Paul
Fisher said yesterday. Peoples infla-
tion expectations have been remark-
ably resilient through this episode.
We need to justify that by getting
inflation back to target over the next
couple of years.
Contrary to the Prime Ministers
dovish tone, Fisher said that the
Bank should only consider more
quantitative easing if the economy
takes a serious downturn, a scenario
TAXPAYERS could effectively pay
about 2bn to wind down all of
Northern Rocks assets, the
National Audit Office has
estimated, in a report that also
reveals that the government
successfully bid up the price of the
bank it sold by some 60m.
The NAO says that taxpayers
could be left hanging onto some
assets from the bad bank for 10-
15 years. The public purse will
probably escape losing money on
them because of its low cost of
funding, the agency said, but if the
government had to fund them at
typical market costs, the net
present cost is forecast to be 2bn.
However, the Treasury and the
agency UK Financial Investments
(UKFI) acted reasonably in
pursuing a sale of the good bank
as soon as possible, the NAO said,
concluding: A delayed sale would
not have been better value.
And the report also documents
the bidding process for the good
bank in detail: it reveals that JC
Flowers submitted an offer that
would have partially mutualised
Northern Rock and combined it
with One Savings Bank. But the
private equity firm withdrew its
bid. Instead, NBNK and Virgin
Money slugged it out over the bank
until Virgin outbid its rival by
about 90m.
NAO forecasts
net loss on Rock
of up to 2bn
PM Cameron lauded monetary stimulus... ...Yet Bank official Fisher was less dovish
2
NEWS
BY JULIET SAMUEL
BY JULIAN HARRIS
To contact the newsdesk email news@cityam.com
I
T is truly astonishing that one of
the greatest company flotations in
history is taking place in the
middle of one of the greatest
financial crises in history. Facebook is
going to market, raising $16bn and
valuing the firm at a ridiculously
optimistic $104bn in the biggest
technology initial public offering
(IPO) in history; meanwhile, Greeces
woes have spread to Spain, as the
Eurozone moves ever closer to the
next stage of its slow-motion crisis.
Moodys decision to downgrade 16
Spanish banks last night, including
Santanders UK subsidiary, was
merely the latest blow.
The symmetry is striking: as one
bubble inflates, another deflates. The
difference, of course, is that Facebook
is a great company, albeit one that is
being over-valued; the Eurozone was
always a flawed construct, a
EDITORS
LETTER
ALLISTER HEATH
Facebooks bubble inflates while the Eurozones deflates
FRIDAY 18 MAY 2012
grandiose scheme that will eventually
help destroy the region it was suppos-
edly trying to unify. The two stories
are telling in other ways too. Greece
may once have been the worlds great-
est civilisation but tragically it is
now in an abject state. The great inno-
vators were once in Athens and the
Greek city-states; they have long since
moved elsewhere, not least to Menlo
Park, California, home of Facebook.
The problem for Britain is two-fold:
it is not developing enough new
world beating companies. There is
still no British Facebook. And it isnt
really doing anything significant to
protect itself from the fallout from
the Eurozone crisis even more quan-
titative easing, as the Prime Minister
implied may be the answer yesterday,
is hardly enough. What is needed is a
solution to both problems simultane-
ously. The coalitions Plan A lots of
tax hikes, spending cuts of 1 per cent
a year for six years and even more red
tape and tinkering isnt working;
the oppositions Plan B spend a few
billion more than the coalition and
tax the City even more would make
matters even worse. What we need is
a plan A+: genuinely restrained public
spending combined with radical
deregulation and a tax system that is
pro-growth, pro-entrepreneurs and
pro-capital formation.
That is where a major research proj-
transparent and fairer tax system
made in the UK for several decades. I
will be writing about the detailed pro-
posals we are advancing, as well as
some of the findings from the dozens
of academic papers we reviewed, on
Monday; we will also be publishing a
series of articles in our Forum pages
on various aspects of our findings.
The Eurozone crisis means the UK
government can no longer continue
with business as usual. The chancel-
lors plans cannot survive a major
implosion of the single currency. He
needs to be much bolder. We need to
become an economy that can pro-
duce its own Facebooks to grow our-
selves out of recession not one
where the answer to every problem is
to print more money.
ect that I have been leading comes in.
On Monday, the 2020 Tax
Commission a body of economists,
business people, think-tankers and
journalists will be releasing its final
report, a 417-page treatise on how to
reform Britains tax system to boost
growth and incentivise work and
investment. The Commission of
which I was privileged to be the chair-
man was set up by the TaxPayers
Alliance and the Institute of
Directors; its mission was to draw on
economic research, international
experience, history, philosophy, psy-
chology and opinion polling to map
out what a government that was seri-
ously committed to boosting competi-
tiveness would do to the tax system.
The result is the most comprehen-
sive, evidence-based and detailed case
for lower taxes, lower spending and a
dramatically different, simpler, more
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that he does not envisage occurring.
Weve had a couple of quarters of
negative growth, but we havent really
had a fall back into a deep recession,
Fisher said. If I saw that risk re-emerg-
ing, then personally I would want to
think again about restarting, he said.
If there is not that serious possibility
of deflation down the road, then I
think there is less impetus behind
doing more asset purchases.
In February Fisher told City A.M. that
he was open-minded about whether
the Bank should do more QE or keep
assets at the current level of 325bn.
Since then, initial estimates from the
Office for National Statistics (ONS)
have suggested that the UK has
entered a technical, shallow recession,
although labour market figures
released on Wednesday showed that
employment has risen, while business
surveys appear to reflect mild growth,
rather than economic contraction.
The key reason for restarting QE last
October was the possibility that the UK
could topple over into a deep recession
again. We seem to have hopefully
headed that risk off at the pass, Fisher
told Dow Jones Newswires yesterday.
LMEs suitors bids pass 1bn mark
The three remaining contenders to acquire
the London Metal Exchange have all
valued it at more than 1bn and promised
to preserve its open outcry trading pit,
setting the scene for a close-run contest
as they attempt to snatch control of the
historic bourse.
Graff on for $3bn-$4bn value at IPO
Graff Diamonds, known for selling
multimillion-pound jewels to the super-
rich, will be valued between $3bn and
$4bn when it lists in Hong Kong,
according to people familiar with the
process.
De La Rue prepares for new drachma
A British company that produces
banknotes for more than 150 countries is
preparing for a potential reintroduction of
the drachma. De La Rue, which prints
sterling and euros, has asked its
production staff to select potential
security threads for use in new banknotes
and retrieved covers from an old
collection of copper moulds, used for
watermarks, should Greece exit the euro
and an order come in from Athens.
No. 10 guide to changing nappies
New parents will be given government
advice on changing nappies,
breastfeeding and baby talk under a
multi-million pound initiative to support
family life. David Cameron said it was
ludicrous that parents received more
training in how to drive a car than in how
to raise children.
Hugo Boss Dresses Up China Efforts
High-end fashion label Hugo Boss plans to
open about 60 new stores in China's
mainland over the next three years just as
growth in the country's luxury sector
seems to be cooling off.
US duties for Chinese solar panels
Trade tensions between the U.S. and
China are likely to ratchet up after the
Commerce Department found several
Chinese solar-panel companies guilty of
dumping and slapped 31% tariffs on their
products.
cityamactivetrader.com 0203 201 8900
In association with Champagne reception sponsor
WHAT THE OTHER PAPERS
SAY THIS MORNING
OIL explorer Cairn yesterday became
the latest firm to suffer a defeat on
executive pay as 67 per cent of
investors voted against the firms
remuneration report
But because the poll is non-
binding it seems that the board are
set to push ahead with the
payouts despite being hit by one of
the largest ever shareholder
rebellions on directors pay.
We have taken on board and
acknowledge the way shareholders
have cast their proxy votes on
remuneration, Jackie Shepherd,
head of the firms remuneration
committee, said in a statement.
Cairns share price has dropped
by 72 per cent in the
last year and in
January exasperated
investors forced the
board to abandon a
plan to give
chairman and
founder Bill Gammell
share options
worth 2.5m.
Shareholders
say no to Cairn
executive pay
BY JAMES WATERSON
THE SHAREHOLDER spring yesterday
hit insurance giant Prudential, as a
third of investors failed to back its
remuneration report while a simi-
lar rebellion hit industrial materials
group Cookson.
More than 30 per cent of
Prudential shareholders voted
against proposals to hand 29.8m in
pay and benefits to seven executive
directors at a tense AGM in central
London.
A further three per cent of
investors withheld their votes.
It was particularly embarrassing
for chief executive Tidjane Thiam
because the pay deal was given an
amber top warning by the
Association of British Insurers, the
trade body that is expected to
appoint Thiam as its new head.
Those who voted against have
stressed that they did so because of
Prudential and
Cookson hit by
investor revolt
BY JAMES WATERSON
concerns about specific issues, said
chairman Harvey McGrath.
They went on to express their full
confidence in the management of
the group, he added, before saying
that the firm would consult share-
holders on pay in the future.
Prudential's best-paid director last
year was Michael McLintock, the head
of its M&G fund management arm,
who received a total package worth
7.6m. This compares to 4.7m for
chief executive Thiam.
Shares in the firm closed down 1.5
per cent at 690p.
At Cooksons AGM on the other side
of the capital, 32 per cent of share-
holders voted against the remunera-
tion report, in protest a long-term
incentive plan that is set to give 20m
worth of shares to three executives.
Cookson responded by saying it will
look at breaking the firm up to
improve returns and will appoint an
activist shareholder to its board.
Santanders AA mortgage deal
shows appetite for securitisation
BANKING group Santander UK said
yesterday it had raised 2.25bn
through a residential mortgage-
backed securitisation deal.
The first AA-rated issuance by a
UK institution since before the
financial crisis was announced
came just hours before the branch
had its credit rating slashed by
Moodys.
Nonetheless, the UK arm of the
Spanish bank has raised 5.25bn via
asset-backed deals so far this year,
with strong demand for this latest
BY ELIZABETH FOURNIER
tranche, issued via its Fosse master
trust programme.
The vehicle which packages
together a portfolio of prime
residential UK mortgages sold by
Alliance & Leicester included two
tranches of debt rated at AA.
Mortage-backed deals have been
out of favour for several years after
banks lost huge amounts of money
on packages of subprime loans that
had been given investment-grade
rating.
But investors have slowly been
returning to the securitisation
markets in recent months, seeking
highly-rated and transparent deals
backed by stable sources of cashflow.
The Santander deal is made up of
eight AAA tranches with a range of
maturities and denominated in five
different currencies including
Australian and US dollars.
An extra set of notes,
denominated in Japanese Yen, was
added at the last minute to meet
investor demand. Securitisations
form an important part of Santander
UKs balance sheet management,
and so far this year, weve raised
5.25bn through vehicles such as
todays, backed by residential
mortgages, said Stephen Jones,
finance chief at the bank.
Chairman Bill
Gammell lost the
vote on pay
GLOBAL law firm Norton Rose
released its first set of financial
results since its recent
international mergers yesterday,
reporting strong growth in its
revenues compared to 2010.
In the year to 30 April
preliminary turnover at the
combined group hit $1.32bn
(835m), up from $814m last
year compared to figures for
Norton Rose LLP and Norton
Rose Australia.
Including currency
differences that equates to
growth of nine per cent on a
like-for-like basis.
Revenues grow at Norton Rose
as global acquisitions add up
BY ELIZABETH FOURNIER
The groups revenues now
include its recent acquisitions in
South Africa, where it merged
with local firm Deneys Reitz,
and in Canada where it was
joined by Toronto-based Ogilvy
Renault.
The benefits of the group are
obvious, said Norton Rose chief
executive, Peter Martyr.
We are seeing strong growth
across the business
internationally.
Norton Rose is the first major
UK law firm to report full-year
revenues for the latest financial
year, with figures for 2011
expected from the Magic Circle
firms and rest of the sector over
the next few weeks.
FRIDAY 18 MAY 2012
3
NEWS
cityam.com
How the shareholder spring developed
(and where it might go next)
2

J
U
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E
WPP
Holdings
AGM dates for potential shareholder rebellions
1
2

A
P
R
I
L
30%
of investors at
Smith & Nephew
fail to back
renumeration
2
7

A
P
R
I
L
31.5%
of shareholders of Barclays fail
to back renumeration
1
7

M
A
Y
70%
do not back
Oil gorup Cairns
pay deal
33% do not back Prudential pay deal
2
5


M
A
Y
HSBC
3
1

M
A
Y
Deutsche
Bank
do not back
Cookson pay deal
32%
3

M
A
Y
40% do not back Inmarsat pay deal
37% do not back UBS pay deal
Sly Bailey of
Trinity Mirror
quits to avoid
shareholder revolt
do not back
Aviva pay deal
59%
8

M
A
Y
Avivas
Andrew Moss
steps down
do not back William
Hill pay deal
52%
IMF chief Christine Lagarde has
warned that a Greek exit from the
euro would be extremely expen-
sive as analysts step up their war-
gaming of a disaster scenario that
would see Athens crash out of the
single currency.
Bank of America Merrill Lynch
analysts have estimated that
Greece will have just 1.3bn left by
the end of May and could run out
of money in June if its bailout
funds are not disbursed.
In a paper on the consequences
of a possible Greek exit, the BoA/ML
analysts say that the ECB could lose
35bn, but is unlikely to require
recapitalisation unless other coun-
tries also fall out of the single cur-
rency.
Broadly, the analysts conclude
that an exit for Athens will not be
disastrous for the rest of the
Eurozone but should the impact
of a Greek collapse extend to larger
countriessuch as Spain or Italy
the future of the entire Eurozone
project would be in tatters.
The main fear is a run on
BY JULIET SAMUEL
Spanish banks, which would likely
force Madrid to seek a Eurozone-
sponsored bailout for them.
Markets have also been shaken by
the gaining popularity of the radi-
cal left Syriza party led by Alexis
Tsipras, who won popular support
by playing hard-ball during coali-
tion negotiations and who could
take first place in Greeces new
round of elections.
Yesterday he told CNN: I dont
know what Madame Merkel wants
to do but I know what we want to
do... We dont want outside the
Eurozone. But we believe that
Madame Merkel put the euro and
the Eurozone in big danger by keep-
ing these austerity measures.
He also said: Everybody now
understands that with this [austeri-
ty] policy we are going directly to
the hell. And we want to change
this way.
Investec analysts were more san-
guine: In our view the market has
all but priced in a Greek exit from
the euro.
It is not clear, however, whether
markets can price a Greek exit with-
out also estimating the cost of pos-
sible contagion.
Fitch says top 29 banks
need $556bn in equity
RATINGS agency Fitch yesterday said
the worlds top banks may need to
raise a total of $556bn (351bn) to
meet tougher new capital rules,
cutting returns by a fifth and forcing
them to curb investor payouts and
raise customer charges.
The credit rating agency studied
29 banks named by G20 world
leaders as being globally
systemically important financial
institutions and required to hold
core capital buffers of up to 9.5 per
cent by the start of 2019.
BY CITY A.M. REPORTER
The list includes Barclays,
Deutsche Bank, Goldman Sachs,
HSBC, JPMorgan and UBS.
Fitch said the banks represented
$47 trillion in assets and may need
to raise $566bn of common equity
to hit core ratios of around 10 per
cent and satisfy new global Basel III
requirements being phased in over
several years from January.
Banks will likely pursue a mix of
strategies to address these
shortfalls, including retention of
future earnings, equity issuance,
and reducing risk-weighted assets,
Fitch said.
Dimon faces questions on the $2bn trading loss
GOLD rose slightly yesterday, as
buyers were enticed to the market
because of its relatively low price.
However, the 2.51 per cent rise
to $1575.20 still leaves gold well
below its recent $1795 peak in
March as investors steer clear of
the traditional safe haven despite
renewed Eurozone worries hitting
other assets like stocks and bonds.
Analysts believe the unusual falls
in gold prices have been caused by
central banks ending quantitative
easing, thus reducing inflationary
pressures which eat away at the
value of assets like bonds.
Gold moves off four-month
low as investors eye low prices
BY TIM WALLACE
Gold is losing out to other
potential safe havens for example
the dollar is quite high and the US
is relatively resilient to the crisis in
Europe, making their bonds more
appealing, said Capital
Economics Julian Jessop.
Even German bonds are
popular, squeezing out gold.
Whether this will last remains
to be seen in a Eurozone breakup
even the dollar will suffer from the
impact on the global economy, and
we could see more quantitative
easing. Assets like bunds could lose
their safe haven status, and
investors would move back to
gold.
FRIDAY 18 MAY 2012
4
NEWS
cityam.com
JPMorgans Dimon will
testify before Congress
JPMorgan chief executive Jamie
Dimon has agreed to testify before
the US Congress over his banks
recent trading losses, which have
ignited a political debate over
whether large US banks need to be
reined in by regulators or new laws.
US Senate Banking Committee
chairman Tim Johnson said in a
statement yesterday that his panel
will invite Dimon to appear before
Congress.
As always, we will continue to
be open and transparent with our
BY JAMES WATERSON regulators and Congress, JPMorgan
said, confirming Dimon will appear
before the panel.
Last week the bank announced
that it has suffered more than $2bn
(1.2bn) in losses due to trades that
went bad at its London-based Chief
Investment Office.
Critics cite the trades as evidence
that reforms introduced by the 2010
Dodd-Frank financial oversight law
should be strictly enforced.
Shares in JPMorgan have lost a
quarter of their value since the
existence of the losses was revealed
last Thursday night.
Markets strive
to price in cost
of Greek exit
Social Networkers: the instant billionaires set to benefit from Facebook
G
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FACEBOOK will celebrate its flotation
with an all-night hackathon at its
Californian headquarters, a company
tradition in which programmers
work on side projects that some-
times turn into mainstream offer-
ings.
But after the party the firm will
have to focus on proving to investors
that it really is worth more than
$100bn (63bn).
Despite being the worlds biggest
social network, with over 900m
active users, Facebook faces chal-
lenges maintaining its growth
momentum.
Some investors worry the company
has not yet figured out a way to
make money from the growing num-
ber of users who access the site on
mobile devices such as tablets and
BY JAMES WATERSON
smartphones where adverts are more
difficult to sell.
Meanwhile, revenue growth from
Facebooks online advertising busi-
ness, which accounts for the bulk of
its revenue, has slowed in recent
months.
Earlier this week General Motors
decided to stop buying space on the
site, after the companys marketing
executives decided Facebooks ads
had little impact on consumers.
Realistically the sites seemingly
endless growth must begin to slow,
with more than a third of the worlds
internet users already signed up.
Some financial advisers are con-
cerned by the companys valuation
and have struggled to lower expecta-
tions. As one adviser commented:
People want to just own it because
they think its the next Google and
they missed out on that.
FRIDAY 18 MAY 2012
6
NEWS
cityam.com
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personalities of the year?
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category sponsors
champagne reception sponsor
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Heron Corporation
2011 Personality
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Centrica
2010 Dealmaker
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Spotify
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Burberry
2010 Company
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your company for City A.M.s third
annual Business Awards.
Visit www.cityamawards.com
Deadline for nominations 12 July
in association with
MARK ZUCKERBERG
Facebook founder and chief executive
Stake: 27.9%
The Harvard dropout, who created
Facebook in his college dorm room in
2004, will control 55.8 per cent of the
voting power after Facebooks IPO.
JIM BREYER
Angel investor
Stake: 11.2%
Jim Breyer, a partner at Accel, was
one of Facebooks earliest investors.
He is selling most of his shares and
will be left with a 1.4 per cent stake.
ACCEL PARTNERS
Venture capital investor
Stake: 11.2%
Accel Partners, helped by then
associate Kevin Efrusy (pictured)
invested $12.7m in Facebook in the
websites early days.
DUSTIN MOSKOVITZ
Facebook co-founder
Stake: 7.5%
Zuckerbergs Harvard roommate,
Moskovitz helped create the website
and was credited as Facebooks
chief technology officer.
SEAN PARKER
Facebook founding president
Stake: 3.9%
Co-founder of Napster, Parker was
Facebooks first president and acted
as a mentor to Zuckerberg. He drew
in several large investors.
THE OTHERS
DST Global | Yuri Milners fund 5.5%
Eduardo Saverin | Ex Facebook CFO 4%
Mail.ru Group | Russian internet giant 3.1%
Tiger Global | Hedge fund 2.8%
Peter Thiel | Angel investor 2.5%
Meritech Capital | Venture capital firm 2.3%
Elevation Partners | Bonos fund 2.2%
AMAZON
Date: May 1997
Raised: $54m
Price: $18
First day of trading: Up 30% to $23
Current price: $218
GOOGLE
Date: August 2004
Raised: $1.67bn
Price: $85
First day of trading: Up 18% to $100
Current price: $623
LINKEDIN
Date: May 2011
Raised: $352.8m
Price: $45
First day of trading: Up 109% to $94
Current price: $105
GROUPON
Date: November 2011
Raised: $700m
Price: $20
First day of trading: Up 31% to $26
Current price: $12
ZYNGA
Date: December 2011
Raised: $1bn
Price: $10
First day of trading: Down 5% to $9.5
Current price: $8.2
FACEBOOK BY NUMBERS
901mmonthly active users
526mdaily active users
$3.7bn revenue in 2011
$1bn net income in 2011
Facebook must
prove itself on
ads and growth
INTERNET IPOs: WHAT IS FACEBOOK UP AGAINST?
A most hospitable retreat in the belly of Liverpool Street.
I AM THE
MERCHANT.
MAN HATH NOT
CREATED A GREATER
PARTNERSHIP THAN
THE HUMBLE FISH
AND THE CHIPPED
POTATO.
INVESTEC is not interested in any
more acquisitions for now,
managing director Bernard Kantor
told City A.M. yesterday, after
unveiling what he called
disappointing results for the last
year.
The results were hit by higher-
than-expected impairments in
Australia due to flooding in
Queensland, Kantor said. You cant
be happy with these results, thats
clear, he said. But were very
confident about the future.
Operating profit for the year to
March fell by 17.4 per cent to
358.6m. But the bank is
successfully growing its wealth
management business: assets under
management rose 8.9 per cent to
96.8bn, partly fuelled by its
acquisition of Evolution Group,
which owned wealth manager
Williams de Broe.
Unlike other banks, Investec is
struggling with a 10bn excess of
deposits that it would like to put to
use, giving a loan-to-deposit ratio of
70 per cent that Kantor said he
would prefer to be 85-90 per cent.
But he added that in current
markets, he would rather have too
much than too little liquidity.
Asked if the bank is interested in
further acquisitions, Kantor said:
We need to grow organically now
and integrate the businesses.
Investec cools
on acquisitions
as profit drops
BY JULIET SAMUEL
G
E
T
T
Y
AVIVA yesterday admitted it will take
the rest of 2012 to find a new chief
executive, as it announced it had
seen a five per cent drop in life insur-
ance sales for the first quarter.
Andrew Moss, the insurers former
boss, last week became the highest-
profile casualty of the shareholder
spring when he quit after 59 per cent
of investors voted against the compa-
nys remuneration report part of a
wider protest against the companys
underperforming shares.
Incoming chairman John
McFarlane, currently running the
business on an interim basis, said he
would take the necessary actions
and decisions to improve the stand-
ing and performance of the group
at an important time for Aviva.
He also confirmed that the group
will get rid of units where the prog-
nosis for the future is not ideal, con-
tinuing a long-term strategy of
selling underperforming units.
Aviva is badly exposed to the
Eurozone crisis, with almost 40 per
cent of its operating profit generated
Aviva will take
rest of year to
find new CEO
BY JAMES WATERSON
in mainland Europe last year.
Life and pension sales in recession-
struck Italy and Spain were down 23
per cent for the quarter as consumers
there saved and invested less.
Shares in the firm, which have lost
almost 40 per cent of their value in
the last six months, dropped a fur-
ther two per cent yesterday.
But Barrie Cornes, an analyst at
Panmure Gordon, issued a buy rec-
ommendation: The shares are being
driven by Europe but, on a 12 month
view, we believe that the current
share price represents a buying
opportunity but its not for the faint-
hearted.
Aviva PLC
15May 16May 17May 11 May 14May
280
285
270
275
290
295
300
305 p
267.90
17May
LLOYDS of London insurer Amlin
yesterday said it is on course to
return to profit, helped by price
increases and an absence of
substantial claims during the first
four months of the year.
The trading environment
continues to improve, with more
than 75 per cent of our portfolio
achieving rate increases in the
period to 30 April, explained
chief executive Charles Philipps.
We remain well positioned to
return to a good level of
profitability during 2012.
Amlin said gross written
Higher premiums help insurer
Amlin recover from catastrophe
BY JAMES WATERSON premiums for the period were up
10.5 per cent at 1.4bn, boosted by
an average renewal rate increase
of 4.3 per cent.
The biggest gains were to be
found in its catastrophe
reinsurance business, assisted by a
strong performance from its UK
motor division.
Shares in the firm, the largest
listed insurer on the Lloyds
market, closed yesterday up 3.6
per cent at 329.4p.
Amlin made a pre-tax loss of
193.8m in 2011 after catastrophe-
related payouts following
earthquakes in Japan and New
Zealand, as well as the Thai floods.
FRIDAY 18 MAY 2012
8
NEWS
cityam.com
Amlin is set to return to profit in 2012 after Japans earthquake caused a loss last year
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FINANCIAL services group Close
Brothers posted a jump in its loan
book yesterday as the banking
division prospered.
It said the banking arm showed a
strong performance in the
quarter to 30 April with the loan
book up six per cent to 4bn, helped
by new business in motor finance,
asset finance and property. The loan
book is up 15 per cent so far this year.
Boost for Close
Brothers bank
BY PETER EDWARDS
PRIVATE equity house 3i is expected
to shake-up its global operations
after naming veteran banker Simon
Borrows as its new chief executive
and posting a heavy loss.
Borrows, who replaced Michael
Queen yesterday after answering
calls from some of the groups larger
shareholders to go for the top job,
will cut costs as he tries to reverse
the groups share price decline and
patchy investment record.
Borrows is said to have agreed a
clear mandate with the board for
tackling the groups issues.
He hinted at his strategy when he
said he would tackle the difficult
legacy portfolio from the peak years
of 2007 to 2009 and noted that
many of the challenged invest-
Borrows set to
tighten belts
at troubled 3i
BY PETER EDWARDS
ments came out of offices in Britain
and Spain. The firms global footprint
will be more focused and a lot lean-
er although he re-affirmed his faith
in its operations in the emerging
markets of India and Brazil.
Shares in 3i, Britains oldest private
equity firm, have fallen by more than
a third over the past year. Yesterday it
said net asset value per share was
279p at 31 March, down 20.5 per cent
from 351p a year ago.
The dividend was raised to 8.1p
from 3.6p last year as Borrows, who
joined 3i as chief investment officer
in October, set out to cheer unhappy
investors.
Total return, a measures of the
change in the value of its investments
and its fee income, fell to a negative
of 656m for the year, compared to a
324m gain the previous year.
HSBC ramps up cost-savings
and says overhaul is on target
HSBC said yesterday that it has
already achieved $2bn in
annualised cost-savings and that
it is likely to get the figure up to
$3.5bn once its three-year
overhaul is complete.
It also said that it has reduced
its payroll by 14,000. And its
disposal or wind-down of 28
unwanted businesses has bagged
the bank $5.9bn and will
eventually reduce its headcount
by 15,000 staff.
More importantly, the deals
have also allowed the bank to
free up $55bn in risk-weighted
assets, meaning it can redeploy
the capital it had held against
BY JULIET SAMUEL
possible losses from those assets.
The bank did not reveal many
new targets, disappointing some
analysts, but stuck to its 48-52 per
cent cost-to-income ratio, which is
widely seen as unrealistic.
Credit Suisse analysts said they
dont expect the bank to achieve
that target because: We dont
expect interest rates to go up that
soon; we need full delivery of
revenue growth targets; cost
inflation is not reflected; and
there is no investment spend
assumed.
Chief executive Stuart Gulliver
said: We will continue to simplify
HSBC, enabling us to integrate
systems and operate to high global
standards internationally.
The bank also reiterated that it
expects to achieve a return on
equity of 12-15 per cent in the
medium term, versus 10.9 per
cent last year.
And it outlined how it shares
out the proceeds of its
activities, saying that half is
retained for capital or investing,
35 per cent is paid out as
dividends and 15 per cent is
allocated to bonuses, which it
said was a considered level.
The total pay bill will be a much
larger proportion, however,
since it would also include base
salaries.
The bank also plans to cut
down IT costs from 14 per cent
of its expenses to 12 per cent in
part by moving some
technology centres offshore.
F
ROM the gobbledegook
spouted by HSBCs top brass,
you could be forgiven for
doubting its claim that it is
making strong progress in
simplifying the bank.
Yesterdays strategy day, like its
first one a year ago, was an orgy of
jargon.
Last year, the concept of
connectivity took centre stage.
This was a buzzword to show that
chief executive Stuart Gulliver had
recognised that HSBCs main
appeal to business clients is its
presence in an awful lot of fast-
growing countries.
This year, we had promises to
implement end-to-end re-
engineering, contact centre
optimisation, right-shoring and
de-layering and international
connectivity (is there any other
kind, after all?).
Notwithstanding the nonsense
words which are an odd contrast
to Gullivers pithy turn of phrase
when he is not impressing
analysts has the bank made
progress in the right direction?
It certainly looks like it: that the
bank revised up its cost-savings
guidance is important, since the
markets biggest doubts about the
bank generally hang over its
expenses.
And it seems increasingly like
many of the cuts might not be as
tricky as first thought: if the
company could boast that it has
reduced paper consumption by 14
per cent in one year, there must
surely be a lot of other low-
hanging fruit to harvest.
Of course, there are still grave
macro threats to the strategy:
inflating pay costs in Asia, low
interest rates in the west and the
Eurozone teetering on the brink of
disaster.
But in the areas he can control,
Gulliver appears to be delivering
on his promises so far.
BOTTOM
LINE
JULIET SAMUEL
City rainmaker Simon Borrows had been seen as the heir apparent since joining 3i in October
The new capital management policy seems sensible, in that it seeks to
steer a middle way between the ultimately over generous distributions which
left 3i over-geared in the credit crisis and the recent approach, which
tilted in the other direction... We reiterate our Buy rating on 3i.
ANALYST VIEWS

Although the lower than expected net asset value is disappointing this is
offset somewhat by the announcement of an enhanced distribution policy. The
market will be looking for a decisive plan from the new CEO to turn
around the fortunes of the group... This turnaround will take time.

The adoption of a clearer distribution policy is encouraging, as well as

the continued focus on reducing costs. 3i has a strong infrastructure franchise
and the debt management team has impressive credentials. However...
speculation over more radical corporate action is likely to continue.

HAS BRITAINS OLDEST

PRIVATE EQUITY FIRM
STOPPED THE ROT? Interviews by Peter Edwards
PHILIP MIDDLETONBANK OF AMERICA MERRILL LYNCH

MICK GILLIGAN KILLIK & CO

CHARLES CADE NUMIS

FRIDAY 18 MAY 2012
9
NEWS
cityam.com
Despite the right-shoring and de-layering,
Gulliver is travelling in the right direction
HEWLETT-Packard is considering
cutting its workforce by eight to ten
per cent, or a minimum of 25,000
jobs as newly installed chief
executive Meg Whitman strives to
return the storied Silicon Valley
institution to growth.
HP, which employs more than
300,000 people across the globe,
could announce the layoffs as soon
as next week alongside quarterly
results.
HP to slash up
to 25,000 jobs
BY PETER EDWARDS
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G
E
T
T
Y
THE coalitions industrial strategy has
received a major boost from General
Motors decision to invest 125m on
building a new Astra in Britain at the
likely expense of Germany.
Vauxhall, owned by GM, will begin
assembling the next generation Astra
compact at Ellesmere Port in 2015.
It will create about 700 jobs at the
Vauxhall factory and another 3,000 in
the supply chain and means the
north-west plant, which has long
faced rumours of closure, will stay
open until at least 2020.
It casts doubt over the future of
GMs plant in Bochum in Germany,
however. GM is expected to halt pro-
duction of the Astra at its main plant
in Russelsheim, making the car only
at Ellesmere Port and at Gliwice in
Poland from 2015. Russelsheim could
take on some Chevrolet production,
but no decisions have been made.
GM, which lost $747m on its
New Astra gives
Vauxhall plant
125m lifeline
BY PETER EDWARDS
European operations last year, chose
Ellesmere Port after the workers
accepted a new labour deal, which
includes the end of the summer shut-
down, a two year pay freeze and then
two years of agreed pay rises.
The deal means a third production
shift will be added at the Vauxhall fac-
tory, which employs 2,100 workers, to
ensure 24-hour a day running, as well
as the start of weekend working.
GM said production at the plant,
whose sole product is the Astra, would
rise to at least 160,000 cars a year from
the current 140,000, with the poten-
tial to top 200,000.
This (deal) is assisted by the govern-
ments industrial strategy, increasing
its focus on the manufacturing sector
and creating ideal ground for compa-
nies to build up long-term invest-
ments, said Vauxhall chairman
Duncan Aldred.
It represents a victory for business
secretary Vince Cable who flew to New
York in March to lobby GM bosses.
ON Monday it looked like Plus Markets,
the stock exchange for small companies,
was nearing closure. Now, however, its
future looks somewhat brighter.
Holding its hand throughout a nervous
week has been N+1 Brewin, its
nominated adviser and broker, and
Wyvern Partners, its financial adviser.
The N+1 team includes Aubrey Powell,
Alex Wright and Robert Beenstock.
Powell, an Oxford graduate in human
sciences, has worked across a range of
sectors including healthcare and
technology.
He joined N+1 this year as a divisional
director in corporate finance, having
spent 14 years at Panmure Gordon and
Salomon Brothers, which was later
merged into Citigroup.
Wright, educated at Newcastle
University, spent nearly four years at
Grant Thornton before joining Brewin
Dolphin in July last year.
N+1 Brewin was formed when the
corporate advisory and broking team of
Brewin Dolphin bought its way out to
set up a new firm. They established a
joint venture with the financiers that
backed the buyout, N+1, a Spanish
financial adviser and asset
management group.
Anthony Gahan, who led the Wyvern
team, is a founding member of the firm
and previously worked for Lehman
Brothers and Flemings.
ADVISERS N+1 BREWIN
N+1 BREWIN
Plus Markets heads for break-up
as rival bidders line up with Icap
PLUS Markets has moved nearer to
being saved from closure but is likely
to be broken up and sold off to three
separate buyers.
Yesterday Plus confirmed it had
begun talks over the stock exchange
unit with Icap, the worlds largest
inter-dealer broker, run by former
Tory party treasurer Michael Spencer.
More deals could follow, however,
after it received expressions of inter-
est in its derivatives and trading solu-
tions businesses.
BY PETER EDWARDS
Hirander Misra, an electronic trad-
ing expert and one of the founders of
Chi-X Europe, has reportedly held
talks to buy Plus-TS. Meanwhile Vijay
Angelo, currently a consultant to
Plus, and other backers are in talks to
buy Plus-DX. A deal could be complet-
ed as soon as next week.
Angelo declined to comment and
Misra could not be reached.
Plus said it is in talks with Icap
about a sale of the stock exchange
for a nominal amount. The talks are
seen as a move by Icap to pay a cut
price for Plus exchange licence, an
attractive asset at a time when global
regulators are looking to force more
of Icaps core over-the-counter deriva-
tives markets to use exchanges.
The primary interest for Icap prob-
ably isnt Pluss existing businesses,
but the opportunity to pick up an
exchange license on the cheap, said
Richard Perrott at Berenberg Bank.
Plus said on Monday it was plan-
ning to close after failing to secure a
buyer, but the deal offers a lifeline to
Plus 156 listed companies that were
facing the prospect of going private
or seeking other exchanges.
FRIDAY 18 MAY 2012
11
NEWS
cityam.com
ARE YOU MORE LIKELY TO BUY A CAR
IF IT IS MADE IN BRITAIN?
Interviews by Lauren Davidson
No, although I might be more likely to buy shoes
or clothes made in Britain. Since the UK manu-
facturing industry declined we just dont have the car-mak-
ing expertise anymore not like Japan or Germany.
These views are those of the individuals above andnot necessarily those of their company
SIMON BYATT
EUROSTAR

It would be an additional benet, but being

made in Britain is not a strong enough rea-
son in itself to sway me to buy. If it was a good car, like
the old classic Leyland or Rover, then maybe.
RICHARD ROCHE
ROCHE SOLUTIONS
Not necessarily, Id be more interested in the
quality of the car. I would like to buy British,
but buying a car is hedged by other issues and its more
important to have a good, reliable car.
COLIN HALL
OUR IT DEPARTMENT

CITYVIEWS
Vince Cable hails General Motors decision to invest in Ellesmere Port
POLYUS, Russias largest gold
producer, said yesterday that it
expects to complete a premium
listing on the London Stock
Exchange next month and is likely to
join the FTSE 100 index.
As already the largest gold
producer in Russia and one of the
top ten globally, Polyus Gold aspires
to become one of the worlds
leading gold mining companies,
said chief executive German
Pikhoya.
The miner, owned by tycoons
Mikhail Prokhorov and Suleiman
Kerimov, currently has global
depositary receipts trading in
London but aims to get a so-called
premium listing, which would put
the $7.4bn (4.6bn) gold miner in a
stronger position for possible
international mergers.
But the process has been delayed
by regulatory hurdles, particularly
the requirement that Polyus has a
free float of at least 25 per cent.
Earlier this month the firm
raised $635m by selling a five per
cent stake to Chinese investor CIC,
taking its free float to 22 per cent.
The UK Listing Authority is
expected to grant a waiver for the
remaining three per cent.
Russian gold
miner Polyus
eyes LSE listing
BY JAMES WATERSON
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ELECTRICALS chain Kesa said sales
declines worsened in its fourth
quarter as consumers fretted about
fallout from the Eurozone debt crisis
and its core French business came
up against tough digital switchover
comparisons.
Shares in the group fell eight per
cent yesterday after the group,
which sold its UK arm Comet at the
beginning of the year, said sales at
stores open over a year fell 5.9 per
cent in the 16 weeks to 30 April.
Kesa said the group would,
however, make an underlying pre-tax
profit this year between analysts
estimates of 53-64m.
Thierry Falque-Pierrotin, Kesas
chief executive, warned: Since last
reporting in January trading
conditions have been volatile and
have remained weak in most of our
markets, particularly in Vision [TVs]
and in Italy and Spain.
Like-for-like sales at Darty France
stores open over a year slumped 10
per cent, having been down 4.7 per
cent in the third quarter.
TV sales slumped by more than 30
per cent against a spike in demand
last year when France switched from
analogue to digital, forcing shoppers
to upgrade their television sets.
Kesa sees sales
hurt by French
performance
BY CITY A.M REPORTER
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FRENCH CONNECTION shares
plunged more than 20 per cent yester-
day after the fashion retailer issued its
third profit warning of the year as
tough high street conditions contin-
ued to take their toll.
The chain said it appears unlikely
that its full-year profits will meet
expectations after revenues fell 9.5
per cent in the three months to 17
May from the same time last year.
Analysts had previously forecast a
pre-tax profit of between 3m to 4m.
Like-for-like retail sales in Europe
and the UK slumped 12 per cent in
the period as consumers continued to
grapple with muted wage growth and
lower disposable income.
The retailer said margins were also
hit by shoppers demanding bigger dis-
counts in the January sales.
We are being relatively conserva-
tive on our outlook because we are
Third 2012 profit
hit rocks French
Connection stock
BY KASMIRA JEFFORD
not sure that we can see much reason
for expecting any bounceback in the
market or any growth this year,
finance director Roy Naismith said.
Clearly we have got to grasp hold of
this UK retail position with the market
that exists at the moment and ensure
that we get back to a sensible position.
He said the strategic review of the
business launched in March, was well
under way, which will include rene-
gotiating or exiting leases on some of
its 71 UK stores.
Asda market share up as it lures
shoppers with price guarantee
ASDA, the British arm of
supermarket giant Walmart, said it
continued to gain market share in
the first quarter of the year as its
focus on low prices and a revamping
of own-brand ranges helped drive
sales growth.
The UKs second-biggest super-
market chain behind Tesco, said
like-for-like sales excluding fuel and
VAT accelerated in the 12 weeks to
31 March to 2.2 per cent, helped by
strong growth in its core grocery
division and childrenswear.
This follows a rise of one per cent
KASMIRA JEFFORD
in the fourth quarter of last year.
Recent figures from Kantar
Worldpanel revealed that Asda is
growing faster than its main UK
rivals and has now got a market
share of just under 18 per cent.
The supermarket also saw cus-
tomer numbers increase 2.9 per cent,
which it attributed to the success of
its price guarantee scheme, which
gives customers their money back if
it fails to be 10 per cent cheaper than
its rivals Tesco, Sainsburys,
Morrisons or Waitrose.
Customers really valued our price
leadership, the ongoing improve-
ments in quality and our commit-
ment to warm and friendly service,
chief executive Andy Clarke said.
The group added three new stores
in Worcester, Ramsgate and
Tunsbridge Wells in the quarter,
bringing the total number of stores
it owns in the UK to 544.
Meanwhile its parent company
Walmart reported a better-than-
expected quarterly profit as more
shoppers flocked to its US discount
stores.
Net income for the three months
to 30 April surged 10 per cent to
$3.74bn (2.36bn) from $3.4bn a
year earlier, helped by an earlier
Easter and warmer weather.
Founder and chief Stephen Marks faces a struggle to revive the stores fortunes
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THE RESTAURANT GROUP, the
owner of the Garfunkels and
Frankie & Bennys chains, said it
enjoyed a significant uplift in
sales since the end of February, as
the wet weather prompted more
people to visit retail parks and
watch a film.
The company said like-for-like
sales were up four per cent in the
first 19 weeks of 2012 compared to
the same period last year. Total
sales rose eight per cent.
In February it reported
disappointing sales for the first two
months of the year, but predicted
at the time that it would see a
Garfunkel's restaurant owner
profits thanks to bad weather
BY KASMIRA JEFFORD
turnaround as inflation eased and
discretionary spending increased.
The group is trading in line with
expectations and is on track to
report a strong first half
performance, chairman Alan
Jackson said at the groups general
meeting yesterday.
The company runs around 400
restaurants and pub restaurants in
the UK and opened three new sites
in the quarter. It plans to storm
ahead with 25-30 new sites this
year, with over half opening under
the Frankie & Bennys brand.
Jackson said its Coast to Coast
restaurant, which opened in
Brighton in November was also
performing well.
FRIDAY 18 MAY 2012
13
NEWS
cityam.com
The past four years have been a bumpy
ride for the man who plastered the
country with FCUK and made a fortune
on the clever and intentionally
mischievous four letter logo.
Stephen Marks would have been
forgiven last year for thinking that
French Connection had put its darkest
days behind it.
After a painful restructuring in 2009,
which forced Marks to sell-off the
Nicole Farhi brand and retreat from
Japan, the company seemed to be on
the mend and posted a return to profit
in March last year.
In August, Marks told investors that UK
like-for-likes were improving and that
it could approach the important
winter season with confidence despite
the tough economic environment.
However, just months later the picture
had changed and Marks has described
the past winter season as the most
difficult in all his years in the business.
Born and brought up in Harrow in north
London, Marks, now 65, founded
French Connection with Nicole Farhi in
1972 after starting out in the rag trade
making womens coats. He still owns a
42 per cent stake in the retailer.
ANOTHER RETAILER FEELS HIGH STREET PAIN
G
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SUNGJOO Kim, the chief executive
and chair of the luxury fashion
brand MCM has been given the
most prestigious award at the RBS
sponsored Asian women of achieve-
ment awards celebrating the contri-
bution of Asian women across
British business.
The judges described Sungjoo
Kim (right), known as Ghengis
Kim by some of her employees
because of her hard work, as a
wonderful example of someone
who has overcome widespread
prejudice and family opposition to
become one of her countrys most
highly respected entrepreneurs,
while still retaining a strong sense
of social responsibility.
MCMs flagship store is located
on Sloane Street. Business woman
of the year went to Vicky Shu, a
lead project engineer with Shell
UK.
Got A Story? Email
thecapitalist@cityam.com
14
cityam.com
cityam.com/the-capitalist
THECAPITALIST
FRIDAY 18 MAY 2012
GLOBAL BUSINESSES
RECRUITING LONDONS
BEST PROFESSIONALS
YOUR FUTURE IS OUR BUSINESS
CITYAMCAREERS.com
WWW.CITYAMCAREERS.COM
OVER
OR SCAN HERE
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300K
LONDON 2012 IMAGE OF THE WEEK
IN a ceremony in Athens yesterday, the Olympic
flame was handed over to a delegation led by
Princess Anne. Accompanied by David Beckham, it
will travel to the UK on a specially painted golden
British Airways plane. Nicknamed the Firefly, the
plane will land in Cornwall, where the Torch will
begin its 70 day journey across the country.
Between now and the start of the
Olympics, City A.M. is publishing its
Olympic Image of the Week. If you
have a shot you think our readers will
like, please email pictures@cityam.com
with IOW2012 in the subject line. Full
details: cityam.com/london-2012
Retailer glitters at RBS awards
IN BRIEF
Merrill Lynch makes powerful hires
Bank of America Merrill Lynch
(BoAML) yesterday said it had hired
three Credit Suisse bankers to boost its
US power and renewables team.
The bank said Ray Wood, Gavin Wolfe
and Jason Satsky will join in August.
BoAML said that it has consistently
been among the top three banks for US
power and renewables transactions.
Record results for Paddy Power
Paddy Power yesterday reported
record turnover of 4.6bn and operat-
ing profit of 120m for fiscal 2011. The
gambling company increased its full
year dividend by a third to 100 cents
per share and said net revenue was up
28 per cent so far in 2010.
Johnston Press grows digital sales
Johnston Press yesterday posted a
two per cent drop in circulation revenue
for the first 18 weeks of the year. The
publishing group, where digital rev-
enues rose 13.9 per cent but advertising
revenues dropped 9.1 per cent, also said
it will launch an online used car sales
service together with Motors.co.uk.
Bullish Gap ups profit forecast
Clothing retailer Gap yesterday upped
its profit forecast for the full year to $1.78
to $1.83 a share, above the $1.75 to $1.80
it had forecast in February after a strong
first quarter. For the first quarter ended
28 April, Gap earned $233m, or 47 cents
a share, compared with $233m, or 40
cents a share, last year.
G
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TALKTALK yesterday unveiled plans to
increase its dividend after its pre-tax
profits more than doubled last year.
In a bullish trading update, the tele-
coms group reported annual pre-tax
profits rose to 127m from 57m the
year before, with ebitda up 18 per cent
to 326m.
We have delivered our 20 per cent
ebitda margin target significantly
ahead of schedule, chief executive
Dido Harding said, referring to the
companys turnaround strategy out-
lined 18 months ago.
We are underscoring our confi-
dence in the long term prospects for
the business by raising our medium
term ebitda margin target to 25 per
cent and a commitment to grow the
full-year dividend by at least 15 per
cent per annum, Harding added.
TalkTalk lost 13,000 customers in
the fourth quarter, a vast improve-
ment on the 43,000 users who
changed providers in the same period
TalkTalk raises
dividend after
its profits soar
BY LAUREN DAVIDSON
the year before, and said it expects to
deliver its first total customer growth
this quarter.
Harding said she anticipates the
launch of Youview, set for the second
quarter of this year, to boost TalkTalks
customer numbers.
The more products we offer, the
more loyal our customers will be, she
told City A.M.
But she said she is not so fussed
about the TV services release date,
which has been delayed several times.
TalkTalk shares jumped by a fifth to
close yesterday at 159p.
Euromoney beats outlook and
sees opportunities in Greek exit
EUROMONEY, the financial
information arm of Daily Mail &
General Trust, yesterday reported a
13 per cent rise in first-half sales,
boosted by acquisitions, and said
current trading was in line with its
expectations.
Euromoney, one of Europes
biggest business and financial
magazine publishers, said it would
continue to pursue its selective
acquisition strategy and was seeing
BY CITY A.M. REPORTER
the benefits of moving more of its
business online.
Adjusted pre-tax profit was up 17
per cent to 48.6m, slightly ahead
of the companys guidance last
month, on sales of 189m.
The interim dividend was raised
12 per cent to 7p.
The outlook for financial
markets still looks tough,
particularly in the Eurozone, it
said, adding it was shielded to some
extent by the fact more than half its
revenue came from steady
subscription streams.
Euromoney makes about 15 per
cent of its revenues from Europe,
excluding Britain, but finance
director Colin Jones said the
prospect of Greece leaving the
Eurozone could actually help the
company.
It would give a little more
certainty to some of the stronger
European economies, he said.
Volatility of currencies is not a bad
thing. Its probably another
conference we want to run or
something like that... making
money from adversity.
LIMITED Brands, parent of the Victoria's Secret lingerie store chain, posted a quarterly profit
that topped Wall Street's view but its shares fell after its forecast for the current quarter fell
short of analysts' expectations. The company reported first-quarter net profit of $124.6m, or
41 cents per share, and net sales slipped to $2.15bn from $2.22bn in the first quarter last year.
VICTORIAS SECRET OWNER DISAPPOINTS STREET
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SOFTWARE firm WANDisco
yesterday announced its intention
to raise 10m in a flotation on
Londons AIM market at the
beginning of June and use the
money to fund expansion.
The company, which has bases in
Yorkshire and Silicon Valley,
provides software development
tools to firms such as Hewlett
Packard, Motorola and Honda,
enabling engineers to work
together across borders.
It currently employs 40 people
in Sheffield to provide software
engineering and support, with
Sheffield firm WANDisco set to
raise 10m from AIM flotation
BY JAMES WATERSON
sales and marketing based in
California.
In February the firms chief
executive David Richards told City
A.M. that he was sure that his firm
would be a success if it went
public: I think if youve got a
growth story like ours which is
50 per cent growth last year alone
I feel pretty confident.
WANDisco is currently owned
entirely by employees with
Richards holding 32.7 per cent of
the firm and co-founder Dr.
Yeturu Aahlad having a further
32.6 per cent.
The remainder is split between
other employees.
FRIDAY 18 MAY 2012
15
NEWS
cityam.com
PUB and brewing group Marstons
reported a rise in profits yesterday,
which it attributed to its strategy
of increasing food sales and target-
ing family consumers searching
for value in a struggling economy.
Marstons underlying profit
before tax rose nearly 15 per cent
to 33.5m in the half-year ending
31 March.
The company credited its F-
Plan a strategy focusing on
food, families, females, and 40-50
somethings for spurring its
growth this year, including an 11
per cent increase in the number of
main meals served and an eight
per cent increase in children's
meals.
Importantly, the majority of the
growth in food sales has been
achieved through higher sales vol-
ume rather than through price
increases, the company said.
On current trading, the company
said like-for-like sales in the 32
weeks to 12 May were up 2.4 per
cent in the companys managed
house division.
Managed pubs are run directly
by the company and have greater
Marstons gets
a lift from drive
to up food sales
BY HARRY BANKS
pricing freedom.
It estimated that profit at its ten-
anted and franchised businesses
rose around three per cent in the
same period.
Revenue was 342m, up from
318m in 2011.
The company, which employs
12,000 people and operates around
2,150 pubs across England and
Wales, raised its interim dividend
to 2.2p per share, up five per cent
from last year.
Shares in Marstons have risen
about four per cent since the start
of the year, compared to an approx-
imately 12 per cent rise in the FTSE
Mid 250 Index.
Yesterday the shares closed 2.75
per cent higher at 97p, valuing the
company at around 539m.
IN BRIEF
FDA warning hits Hikma margins
n Hikma Pharmaceuticals said
yesterday it expects profitability in its
generics business to be hurt by
continuing price competition and steps
it has taken to comply with a warning
letter from US regulators. For the full
year, the company expects to record
generic drugs sales of between $130m-
$135m, with sales strengthening in the
second half. This marks a 13 per cent
drop from the $154.8m in sales the
generics business reported last year.
Kier performing well so far in 2012
n Construction, services and property
group Kier said yesterday it was on
track to meet its forecast for the coming
year. The group said its construction
division continued to be resilient and
had maintained operating margins
above two per cent, and that it had
secured more than 400m of new work
so far this year.
Shanks hails UK profit growth
n Waste management firm Shanks said
yesterday that a strong performance in
the UK had helped it deliver profit
above expectations for the year to 31
March. Underlying pre-tax profit was up
10 per cent compared to last year,
climbing from 35.2m to 38.8m on
revenues that increased by five per cent
from 717.3m to 750.1m. In the UK
revenue was up by 6m to 186m, while
trading profit grew 39 per cent to
6.9m from 5m in 2010.
SOUTHEND AIRPORT IS JEWEL IN STOBARTS CROWN
THE chief executive of
haulage firm The
Stobart Group said
yesterday its new
development at London
Southend Airport was
arguably the jewel in
the Stobart crown, as it
reported a 1m rise in
profits in the year to 29
February. Group profit
before tax was 30.5m
compared to 29.5m in
the previous year, while
turnover rose from
500.4m to 551.9m.
Since last year Stobart
has opened a control
tower, railway station,
passenger terminal and
runway at London
Southend.
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FRIDAY 18 MAY 2012
16
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cityam.com
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IN BRIEF
Grainger outperforms UK market
Residential landlord Grainger said
yesterday that its UK portfolio was
outperforming the wider housing
market after its valuations rose 2.8 per
cent in the first half of the year.
Completed UK sales rose 5.8 per cent
year-on-year to 94.6m in the six
months to 31 March, while net rental
income increased by 16.4 per cent to
31.8m.
Moody buy boosts Intertek
Intertek said yesterday that its
revenues for the first quarter had been
given a major boost by its acquisition of
Moody International, adding to strong
organic growth of 9.5 per cent.
Revenues at the safety testing firm grew
by 40 per cent in the three months to 30
April, during which the company spent
17m on acquisitions.
Galliford wins Devon road contract
Housebuilder and construction firm
Galliford Try said yesterday it had won
an 80m contract to build the
Kingskerswell bypass in South Devon.
Work is due to begin this month and be
completed by the end of 2015.
Buffett buys Media General
Warren Buffetts Berkshire Hathaway
is boosting its bet on the US newspaper
industry, with a deal to buy the majori-
ty of Media Generals papers for $142m
(89.7m) in cash. The deal, announced
yesterday, means Buffett will have a
stable of about 25 daily newspapers
across the country. Berkshire will also
lend Media General $400m and provide
a $45m credit line.
G
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NATIONAL Grid yesterday reported a
five per cent increase in full-year prof-
its, in line with estimates, and said it
was positive on its outlook for next
year.
Pre-tax profits in the year to the end
of March rose five per cent to
2.59bn, in line with analysts esti-
mates, Britains biggest power suppli-
er said.
National Grid increased its full-year
dividend by eight per cent to 39.28
pence, in line with its policy.
The company said in a statement:
The restructuring of our US business
is now complete and is delivering
operational and financial benefits to
underpin our progress on further
improving US returns.
Our existing price controls in the
UK continue to deliver attractive
returns and we are working to ensure
that this can continue, the gas and
electricity transmission company
added.
It said that net debt levels had
jumped by 1bn to 19.6bn.
National Grid, which currently
National Grid to
hike dividend
as profits surge
BY HARRY BANKS
plans to increase its 2012-13 dividend
by four per cent, expects to announce
a new dividend policy for the period
from April 2013 during the course of
the next year. National Grid is in the
throes of modernising its infrastruc-
ture to make it more eco-friendly.
Chief executive Steve Holliday said:
On the back of a solid all round per-
formance in 2011-12, and reflecting
the revenue growth that our regulato-
ry arrangements provide, we main-
tain a positive outlook for 2012-13,
and expect to deliver another year of
good operating and financial per-
formance. The company also revealed
that it had taken a 116m hit from
bad weather hitting its US business.
National Grid PLC
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BRITISH engineer Invensys said
yesterday it was seeing strong
demand from emerging markets, as
it sought to draw a line under 60m
extra costs unearthed in Chinese
nuclear power contracts in January.
Chief executive Wayne Edmunds
said yesterday no further cost issue
had come to light, adding: We have
the (new) leadership team in place
and I take comfort from that.
Invensys, which makes control
systems for nuclear power stations,
industry, railways and domestic
appliances, said adjusted operating
profit in the year to March fell 20
Invensys buoyed by emerging
markets after China setbacks
BY CITY A.M. REPORTER per cent to 209m, because of
higher costs in its nuclear and rail
operations. The outcome met
forecasts. Revenue rose two per cent
to 2.54bn.
Edmunds said its operations
management unit (IOM), which
provides control systems for oil
refineries and power plants, saw
good demand, particularly in
software, where underlying orders
rose 20 per cent. The company was
also prepared for any economic
disruption, for example in banking,
from Europe, he said.
We do have contingency plans if
there are any short-term
disruptions, Edmunds added.
FRIDAY 18 MAY 2012
17
NEWS
cityam.com
THESE APARTMENTS
M
UST BE SOLD!
THESE APARTMENTS
M
UST BE SOLD!
Leading sustainable developments
Invensys saw adjusted operating profit fall 20pc due to higher costs in nuclear and rail
G
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THE DOWNTURN in consumer confi-
dence continued this month, accord-
ing to survey data published
yesterday, as falling house prices and
deteriorating household finances hit
the economy, while consumers are
pessimistic that the government is
doing anything to help.
YouGovs household economic activ-
ity tracker (HEAT) index fell from 96 to
94 in May, continuing the downturn
which started in April.
Perceived home values dropped
with the index falling from 105 to 98,
while households remain concerned
about their finances over the next 12
months, with that component down
from 74 to 71.
The headline figure was also strong-
ly dragged down by very low confi-
dence in the governments handling
of the economy.
The measure held at 56 this month,
down sharply from a 12-month high
BY TIM WALLACE
of 72 recorded in January.
After the promising start to the
year, consumer confidence has been
knocked in the last two months, said
YouGov boss Stephan Shakespeare.
This decline came off the back of a
poorly perceived budget and the ongo-
ing news from Europe is now starting
to impact as well.
However there were some positive
signs in the survey data the forward
looking job security index jumped
from 100 to 105.
US jobless data fuels
fears over economy
US MANUFACTURING output fell
unexpectedly in May while recent
falls in unemployment ground to a
halt last week, official data showed
yesterday, adding to worries of an
economic slowdown.
Meanwhile Treasury secretary
Tim Geithner said the country
should avoid severe, immediate
austerity if it wants to keep
growing.
Geithner called for a balanced
approach to restoring long-term
fiscal credibility, though he has
also recently warned that the
BY TIM WALLACE
budget deficit must be reined in.
Factory activity fell for the first
time in eight months, with the
Philadelphia Feds survey coming in
at minus 5.8, down from 8.5 in April.
The new orders index fell from 2.7
to minus 1.2 and employment fell 19
points to minus 1.3, as 51.3 per cent
of firms reported low expected sales
growth as a major factor limiting
hiring.
The number of new claims for
unemployment benefits came in at
370,000 last week, the Labor
Department said the same level as
the previous week, which was
revised up in yesterdays release.
Consumer condence fell again in May
Mar
2011
Sep
2011
Jun
2011
Jan
2011
Mar
2012
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Treasury secretary Tim Geithner warned austerity alone is not best for economic growth
INVESTING in a spaceport should
form a key part of the UKs
infrastructure strategy, a leading
business group said today, as it
would help Britain take the lead in
a major emerging industry.
A spaceport would be a key
piece of infrastructure for the
sector operating as a hub for space
tourism, research and
development, the Institute of
Directors report said.
Pointing to the high value of
space tourism and contracts
awarded to the private sector to
supply the international space
station, the IoD believes the
private sector could fund much of
the construction, which could cost
as little as 120m if former RAF
bases are adapted for space travel.
Businesses call
for spaceport
BY TIM WALLACE
LONDONS rental prices outstripped
the UK average again in April,
industry data showed yesterday,
while arrears also increased last
month.
Rents rose 0.5 per cent in the
month to an average of 709 in
England and Wales, LSL property
services reported, taking the annual
rise to 2.4 per cent.
However Londons rents rose 0.7
per cent in the month and 4.5 per
cent in the year to an average of
1,032 per month.
Arrears also rose in the month
with 9.9 per cent of rent late or
unpaid, totalling 300m.
After absorbing the impact of the
stamp-duty deadline on tenant
demand, the rental market began to
heat up , said LSLs David Newnes.
Rents climb
again in April
BY TIM WALLACE
UK mood grim
as household
finances suffer
JAPANS economy rebounded sharply
in the first quarter, official data
showed yesterday.
GDP expanded by one per cent in
the three-month period, far outstrip-
ping the Eurozone, which registered
no growth, and the US, which saw
growth of just over 0.5 per cent.
That compares with a two per cent
decline in Japan in the same quarter
of 2011 in the wake of the earthquake
and tsunami that hit in March.
Private consumption rose 1.1 per
cent in the quarter and public invest-
ment increased by 5.4 per cent.
Exports also rose by a surprisingly
strong 2.9 per cent despite relatively
slow growth in major export markets.
Japan grows
in first quarter
BY TIM WALLACE
19
NEWS
FRIDAY 18 MAY 2012
Covington & Burling
The international law firm
has appointed David
Lorello as a partner in its
London office. He is a US
lawyer and will work in the
firms anti-corruption and
trade control practice. Lorello earned his law
degree from Columbia University.
Mariana Capital Markets
Manvir Nijhar has joined the recently-formed
equity derivatives brokerage as partner in its
London office. Nijhar was previously co-head
of equity derivatives flow sales at Citigroup.
CSS Insight
The telecommunications analyst group has
appointed Marina Koytcheva as its new
director of forecasting. She joins from Nokia.
Olga Holin will also become business
development manager.
Heidrick & Struggles
Daren Kemp has been made global practice
manager of the leadership advisory firm. He is
currently partner of its strategic partners
programme and will move to its London office.
U
S stocks hit a four-month low
yesterday as rising Spanish
bond yields increased investor
anxiety over that countrys
banks and another round of weak
data undermined hopes for US
economic recovery.
Growing worries over
developments in the Eurozone and
lackluster economic data pushed
the S&Ps losing streak to five
consecutive days. The index, which
closed at a level not seen since mid-
January, has now relinquished more
than half of its gains from the first
quarter.
There is not a lot of interest in
the equity market,said Jason
Weisberg, managing director at
Seaport Securities Corp in New
York. The overhang with Europe is
so heavy, people are tired of playing
whack-a-mole, and their portfolios
are the mole.
The Dow Jones industrial average
dropped 156.06 points, or 1.24 per
cent, to 12,442.49. The Standard &
Poors 500 Index fell 19.94 points, or
1.51 per cent, to 1,304.86. The
Nasdaq Composite Index lost 60.35
points, or 2.10 per cent, to 2,813.69.
Caterpillar dropped 4.5 per cent
to $87.77 as the biggest drag on the
Dow after the heavy equipment
companys dealers reported slowing
sales for April.
The Dow declined for an eleventh
session in the past 12.
BESTof theBROKERS
African Barrick Gold PLC
p
360
350
340
330
320
310
11May 14May 15May 16May 17May
344.30
17 May
AFRICAN BARRICK GOLD
Goldman Sachs has upgraded the FTSE
250 miner to neutral, despite saying
it is poorly positioned compared to
underperformance of peer companies.
Goldman yesterday released a note
saying that it nonetheless sees a
median upside relative to our mining
coverage and is hence edging up its
rating of African Barrick Gold.
DASHBOARD CITY
CITY MOVES
NEW YORK REPORT
in association with
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
Babcock International Group PLC
p
880
860
840
820
800
780
11May 14May 15May 16May 17May
836.50
17 May
BABCOCK
Liberum Capital has downgraded the
engineering support services company
to hold from buy, with a target
price of 850p. Net debt for the current
financial year is up by 3m, Liberum
said, while warning over coal prices
and adding: Accounting changes
might result in a 12 per cent
downgrade to financial year 2014.
Ophir Energy PLC
p
600
575
550
525
500
11May 14May 15May 16May 17May
590.00
17 May
OPHIR ENERGY
Credit Suisse has upped Ophir Energys
target price to 950p from 680p to take
account of its Tanzanian gas discovery.
It says the find will increase its gross
gas resource base, and puts Ophir on
track for a strong drilling programme
this financial year. Sees July and Papa
well result as next potential catalyst for
shares. Reiterates outperform rating.
Data disappoints as stocks drop
B
RITAINS top share index
closed below 5,400 for the
first time this year yesterday,
extending its falls to a fourth
straight session as jitters over
turmoil in the Eurozone
dominated the market backdrop.
Weaker banks were the biggest
drag on sentiment, reflecting
exposure to Eurozone debt as
worries about Spanish banks and
the countrys increasing financing
costs were added to the political
paralysis gripping Greece.
At the close, the FTSE 100 index
was down 66.87 points, or 1.2 per
cent at 5,338.38, its lowest close
since November 2011 and having
hit an intra-day low of 5,309.75.
Its losses for the week extended
to 4.3 per cent. Investors were
braced for more weeks of
uncertainty in the Eurozone, with
a second parliamentary election
in Greece scheduled for 17 June
likely to increase prospects of the
country quitting the single
currency and the subsequent
spillover into other countries,
notably Spain.
Spains medium-term
borrowing costs rose sharply
yesterday to around five percent
in an auction of three and four-
year bonds.
In Madrid, Bankia shares fell 14
per cent, having lost as much as
30 per cent earlier after Spains El
Mundo newspaper said customers
at the troubled lender had
withdrawn more than 1bn over
the past week.
LONDON REPORT
Fourth straight dip for the FTSE
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
WHOS SWITCHING JOBS
Edited by Tom Welsh
IN BRIEF
Premier Oil trading in line
Premier Oil yesterday reported that
production averaged 56,100 boepd
(barrels of oil equivalent per day)
during the first four months of the
year in line with trading forecasts. In
a trading update the company said
that it has been producing 62,700
boepd over the last four weeks. In the
statement covering the period from 1
January to 17 May, the company said:
Premier reiterates its production
guidance.
Salamander hitting targets
Oil explorer Salamander said yester-
day it was hitting its production tar-
gets. In an interim management
statement for the period from 1 January
to 16 May, it said its production for the
four months up to the end of April
averaged 10,308 boepd (barrels of oil
equivalent per day). The company said
it would keep its 2012 average produc-
tion forecast at 12-13,000 boepd. The
group completed one appraisal well
during the period, the Dong Mun-3 well
block in Thailand, it said.
Yule Catto sticks to forecast
Chemicals company Yule Catto yes-
terday reported solid trading despite
tough markets. The firm, which sees
half of its profit generated in the
Eurozone, said net debt at the end of
April was 171m. The trading update
covering the period from 1 January
said: The environment remains both
challenging and volatile. Against this
background, expectations for the
group over the year are unchanged.
R
E
U
T
E
R
S
MINER Vedanta yesterday reported a
rise in profits attributing the lift to
its acquisition of Cairn India.
The company said that the outlook
for commodity markets was positive
despite losses in its aluminium busi-
ness. Vedanta said that its profit had
risen 13 per cent in the year to March
to $4bn (2.5bn) mainly fuelled by
Cairns oil and zinc production.
However, spending on Cairn lifted
net debt to $10.1bn, the company
said. Vedanta completed its deal for
Cairn India in December 2011, pay-
ing around $6bn.
Chairman Anil Agarwal said: This
has been a transformational year for
the group, in which we completed
the Cairn India acquisition,
announced the consolidation of the
group, and delivered strong growth.
We are one of the largest diversi-
fied natural resources companies
globally, and with our growth proj-
ects largely completed the outlook
for natural resources remains
robust, Agarwal added.
Agarwal also said that Vedanta had
Vedanta profit
rise fuelled by
Cairn takeover
BY JOHN DUNNE
relatively low costs and expects dou-
ble-digit growth in aluminium
demand in India. Last month the
company reported a drop in full-year
iron ore output, hit by a ban on min-
ing in the southern Indian state of
Karnataka.
Meanwhile, Cairn yesterday gave a
trading update in which it said it was
waiting for seismic data before com-
mitting to further drilling in the seas
off Greenland.
The company said its drilling was
still highly prospective. Separately
shareholders as expected voted to
reject a bonus of more than 3m for
founder Sir Bill Gammell.
Vedanta Resources PLC
15May 16May 17May 11 May 14May
1,020
1,040
1,000
980
1,060
1,080
1,100
1,120 p
985.00
17May
CHILEAN miner Antofagasta said
yesterday that its earnings rose 35
per cent in the three months to 31
March with a rise in the gold price
and increased copper production
contributing.
Earnings before interest, tax,
depreciation and amortisation
(Ebitda), were just over $1bn
(632m) compared with $812m the
year before.
Gold production volumes in the
reporting period were 63,500
ounces and sales volumes were
63,400 ounces Antofagasta said in
its trading update.
Antofagasta earnings jump on
gold price and copper boost
BY CITY A.M. REPORTER The company said the rise was
driven by the starting of
production at its Esperanza mine
which had been behind schedule.
Market gold prices averaged
$1,690.9 per ounce in the three
month period, an increase from
the average price of $1,386.5 the
year before.
Antofagasta produced 162,900
tonnes of copper over the period,
up by more than a quarter on the
129,800 tonnes last year.
The group has four mining
companies; Los Pelambres,
Esperanza, El Tesoro and Michilla,
and is one of the biggest miners in
South America.
FRIDAY 18 MAY 2012
20
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Antofagasta attributed the rise to production starting at its Esperanza mine
D
OES Britain need to reform
its character? According to a
new centre being formed at
the University of
Birmingham, and launched
this week at the House of Lords,
emphatically so. The Jubilee Centre
of Character and Values, funded by
the John Templeton Foundation, has
a mission of developing character in
our schools and in our wider
national life, including companies.
A focus on character may seem
obscure to many, rather making the
centres point. We confuse it with
matters of personality and identity.
But character has a very specific
meaning: it is one of the pillars of a
traditional liberal education. Since
the days of Plato in fifth-century
O
N THURSDAY we finally saw
what contagion could look
like. After large deposit
withdrawals from Greek
lenders earlier this week,
Spanish newspapers reported that
one of Spains banks was facing
similar problems, although it later
denied this. Contagion was only
meant to happen when Greece
actually left or was kicked out of
the Eurozone, but could it happen
for real this quickly?
The trouble with bank runs is
that they become almost airborne
and can be the financial equivalent
of bird-flu. When depositors
withdraw their funds from banks it
shows a complete lack of confidence
in the financial system. Spains
banks are loaded with bad real
estate loans, which are expected to
rise in the coming weeks and
months. The government has made
attempts to re-capitalise the
banking sector, the latest one just
last week. But the problem could be
bigger than the government has
estimated and may even push Spain
cityam.com/forum
Deposits in Greek
banks have fallen by 30
per cent since 2009, by
about 5bn a month
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.

22
FRIDAY 18 MAY 2012
KATHLEEN BROOKS
Like avian flu Eurozone contagion
could be on us before we know it
towards a bailout.
Spanish savers can see what is
going on in Athens, thus it is easy to
understand why they might want to
withdraw their money to the safety
of a secure Swiss vault. Greek banks
balance sheets were essentially
decimated when Athens negotiated
the private sector debt swap. The
four biggest banks had a combined
loss of nearly 30bn (24.1bn). That
is roughly equivalent to the loss
faced by Citigroup at the peak of
the financial crisis in 2009;
however, Greeces economy is the
equivalent of 0.3 per cent of the US
economy, which puts things into
perspective. In Spain, the problem is
even more complex. Recapitalising
the banks could push Spain towards
a bailout. Yet Spanish banks hold
sovereign debt, so if Spain were to
undergo a private sector debt
haircut a la Greece, the banks
would require even more support
from European officials as the value
of Spanish sovereign debt
plummeted.
The Greeks may be withdrawing
money at a faster rate now; however
there has been a steady flow of
funds out of Greek banks since
2009. Deposits have fallen by 30 per
cent since 2010 at a rate of
approximately 5bn per month.
Next months re-run of the election
has only intensified what was
already a bad situation as savers fret
that a return to the drachma could
cause their holdings to decline in
value. In Spain, the problem is less
severe: deposits in Spanish banks
have declined by approximately 5
per cent since 2010, nothing like the
scale we have seen in Greece. Added
to that there is not yet talk of a
return to the peseta, but if the same
pattern as Greece emerges in the
Iberian nation then the rate of
deposit withdrawals could turn into
an unsustainable torrent.
The problem is that the currency
bloc does not have a joint banking
sector; in fact the whole currency
union was never designed to have
one joint economy. The economy of
each member state has a banking
sector at its heart. And as banks see
their deposits drop, their very
survival gets called into question.
Although banks can borrow from
their national central banks if the
European Central Bank (ECB) turns
them away (as has been the case for
some Greek banks recently), in the
case of Greece it would fall to the
rest of Europe to recapitalise its
central bank if it was to need it.
Spain has also become a
European concern. One option
touted as a way for Spain to avoid a
bailout is to recapitalise its banks
using the EFSF, the Eurozones
bailout fund. If this were to happen,
it would mean that German
taxpayers were on the hook for
Spanish banks liabilities, which
would be the biggest sign yet of a
shift to closer economic integration
in the currency bloc.
Closer economic, fiscal and
political ties in the currency bloc are
a possible solution to the sovereign
debt crisis. However, German
taxpayers are extremely unlikely to
want to fund bad mortgages on
Spanish banks books. If Germany
doesnt play ball then expect a tidal
wave of deposit withdrawals from
Spanish institutions, causing a new
phase of this crisis more severe
than anything we have seen so far.
Kathleen Brooks is research director at
Forex.com
Athens, the three Cs of a liberal
education have been: the study of a
canon of great works; the mastery of
a curriculum dealing with the arts of
language and number; and the
development of a character able to
act with virtue whatever life may
throw its way.
Rudyard Kipling evokes the ideal
of character in his poem, If: If you
can keep your head when all about
you/ Are losing theirs and blaming it
on you,/ If you can trust yourself
when all men doubt you,/ But make
allowance for their doubting too;/ If
you can wait and not be tired by
waiting,/ Or being lied about, dont
deal in lies,/ Or being hated, dont
give way to hating,/ And yet dont
look too good, nor talk too wise...
Such an ideal has fallen from
favour in Britain today, along with
the other components of liberal
education, but it is a form of
practical wisdom that still matters
enormously, especially in business.
That might have surprised the
ancient Greek philosophers, who
had little time for commerce, but
the business world, perhaps more
than any other sphere, values the
full range of a liberally-educated
mind. Like the liberal arts
curriculum, business demands not
just the arts of language, of logical
deliberation, discussion and
persuasion, but the numerate arts as
well. Like the ancients, but unlike
many students of the humanities
today, it sees that numbers are a rich
way of describing and understanding
the world, one the verbally dextrous
cannot afford to ignore.
And character is also vital to a
business career. Business life is
uncertain, its priorities shifting with
new technology and popular taste,
its participants at the mercy of
hirings and firings, projects that fail
and others that unexpectedly
succeed. In such a world, the
personal steadiness that comes with
characters self-mastery can make all
the difference. In the same way, the
ideal employee is not simply
someone who will do exactly what
his or her boss tells them, but an
individual with the character to take
responsibility without going rogue.
I wish the new centre success.
Business is an intensely human
profession, with humane concerns.
Its continued success relies on
individuals with the character to live
up to its high standards.
Marc Sidwell is City A.M.s business
features editor. The School of Freedom: a
liberal education reader, edited by Marc
Sidwell and Anthony OHear, is published
by Imprint Academic.
THE LONG
VIEW
MARC SIDWELL
Character matters today more than ever but in business it always has
23
Structural freedom
[Re: Personal choice is the only measure
that matters, Wednesday]
We have to do more than just make the
intellectual case for personal choice in our
lifestyles. We have to stop the person In
Whitehall from restricting our liberty of
action and thought. But which party stands
for freedom socially and economically?
The reality is that the libertarian in each of
us is poorly represented in the current
political system. And the problem is not just
party political, but structural. We need
reform to let us to make voting choices that
would promote freedom, possibly through
direct democracy. I cant see our current
politicians standing up for our right to be
ourselves.
MartinBall
Beyond break-up
[Re: Eurozone break-up will be traumatic but
is now inevitable, yesterday]
Break-up is probably inevitable and will likely
be traumatic, though better for everyone in
the long run. But there would remain signifi-
cant imbalances between exporting countries
and Mediterranean peripheries. And the fun-
damental problem would still be there: lack
of competitiveness, even if cushioned by
exchange rates.
LucyBrown
The Greek export sector is non-existent and
its only real earner is tourism. What kind of
brave traveller will go there now? The country
needs above all a strong, unifying govern-
ment to restore tourist confidence.
DerekWalker
M
ARK Zuckerberg could be
forgiven for thinking
that dropping out of
Harvard to develop
Facebook was the best
decision of his life, when hes in
line for a windfall of more than
11bn today. But this success is a
smokescreen. A degree is often the
best way to prepare someone for a
future of entrepreneurial success.
Earlier this month, Zain Jaffer, a
graduate of UCLs Technology
Entrepreneurship Masters,
secured $2m in funding from
Google and AOL Ventures for
Vungle, an app promotion start-
up. Jaffer is part of a growing
trend of graduates starting firms,
and of universities making
support for entrepreneurs part of
the core of what they do.
That universities now offer
entrepreneurship degrees would
be unbelievable a generation ago.
But now the UK educates students
from Chile to China on how to
launch a start-up in emerging
technologies. Five years ago,
support for entrepreneurship was
rare. Now, nearly every major
university offers support to
budding business owners.
Likewise, student enterprise
societies have mushroomed the
National Union of College and
University Entrepreneurs, for
example, boasts 40,000 members,
70 member societies and aims to
have a society in every university
in the country by 2015.
This is no surprise: the years
spent at university provide the
safest, most supportive
environment for entrepreneurs,
and expose them to innovative
research and support, financial
or otherwise.
One graduate told me that
university is a golden opportunity
TOP TWEETS
So the Eurozone has a fundamental flaw, its
built on growing red tape and regulation. Do
we have parties who want to deregulate? No.
@FinancialBear
Greece doesnt want to leave the euro
because no one wants to leave a party where
all the drinks are bought by everyone else.
@usercare
Austerity promotes growth when public sec-
tor and its debt is choking the real economy.
@dlacalle
Archbishop Sentamu says redefining mar-
riage will diminish meaning. Only if you
believe whats added is inferior or weaker.
@mikefreermp
Is GMs decision to build the Astra in Britain
a signal that UK manufacturing is reviving?
YES
Vince Cable was yesterday trying to take all the credit for GM's
decision to continue building the Vauxhall Astra at the Ellesmere
Port plant in Cheshire. But the truth is that Vauxhall workers
secured their own destiny during the last downturn, when the
labour force responded with remarkable flexibility to a sharp
decline in sales. Like other car factory workers across the UK, they
agreed to a raft of measures to help cut costs in the annus
horribilis that was 2009, including pay cuts, sabbaticals on 30 per
cent of salary, a four-day week and fewer shifts. Crucially, these
measures were agreed upon, and in some cases even suggested
by, the trade unions. A pledge to be similarly flexible in the future
has meant the fate of GM's UK factory has been secured while the
sword of Damocles hangs over its German ops. The more militant
trade unions should take note.
David Crow is managing editor and head of news at City A.M.
David Crow
NO
Tony Burke
The car industry in the UK is the only ray of light in an otherwise
bleak landscape for manufacturing. GMs decision to invest in the UK
is the latest by a number of car manufacturers. But we should not be
lulled into a false sense of security. You only have to look at what the
aerospace industry and the looming closure of Brough. Its closure by
BAE Systems will end nearly a hundred years of aircraft building in
Humberside. More needs to be done to support manufacturing. Next
week we are publishing our Driving Growth strategy, which calls
on the government to build on success in the car industry and
implement a strategy to support manufacturing. Well also call for a
statutory training levy on companies to ensure we have skills for the
future and call on the government to buy British. If there is to be a
manufacturing renaissance, the government needs to look beyond
re-hashed polices such as enterprise zones.
Tony Burke is assistant general secretary of Unite the Union.
RAPIDresponses
Facebook shows
how university is
a startups friend
to fail, and then succeed better.
Hes right. University gives
graduates confidence to take risks
and think big and a test bed of
thousands of potential
consumers.
Take HelpYouApply, a website
started by an undergraduate this
year to help students apply for
internships in the City. Anish
Vinayak started it after canvassing
students to see if there was a
better way of filling in
information on application forms.
There wasnt and so the site, to
perform the task automatically,
was born.
University, too, is a time when
students can build the networks
and friendships which will define
their future careers. Yesterday,
UCL awarded nearly 100,000 in
start-up funding to students and
graduates starting businesses. All
are operating in different sectors,
but the defining theme is that
entrepreneurs are brought
together, and nurtured, by a
shared university experience.
We need the brightest, most
ambitious entrepreneurs to fuel
an economic recovery. Bill Gates,
Steve Jobs, Zuckerberg theyre all
successful, but now they wouldnt
have to drop out to realise their
ambition. We must recognise that
when starting a business, a degree
and the university experience is
the best preparation on offer.
Professor Stephen Caddick is vice-
provost (Enterprise) at UCL.
FRIDAY 18 MAY 2012
STEPHEN CADDICK
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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
A comedic look at US suburban dystopia
yard of Mary and Ben, owners of much
discount patio furniture. Theres noth-
ing obviously Detroit-like about the
place the title lingers more as a sym-
bol of Americas fall from economic
(and possibly other sorts) of grace than
denoting a literal context.
The play opens with Mary, who
seems highly controlling and on-edge,
trying to get a sun umbrella up, and
failing. She is busy hosting the new
neighbours, a young couple, Kenny
and Sharon, who are round for a bar-
becue. Portly and good-natured Ben
comes out to help and puts burgers
on. And so the action kicks off: Mary is
a paralegal, Ben is unemployed a
recent casualty of the recession. Mary
supports them while Ben is home all
day, supposedly fixing up a website for
a new business (but probably looking
at porn). Kenny and Sharon are ex-
addicts who met in rehab (or so they
say).
As the intimacy between the couples
develops, neighbourliness proves a
rich vein, and throughout a sequence
LIFE&STYLE
FRIDAY 18 MAY 2012
24
cityam.com
REVIEWS
FILM
TWO DAYS IN NEW YORK
Cert: 15 | Zoe Strimpel
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THEATRE
DETROIT
The National, Cottesloe Theatre | Zoe Strimpel
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HIGHLIGHTS ON
FOR FULL FESTIVAL LINE-UP AND TICKETS GO TO:
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A FULL CIRCLE LIVE & ^SJM PRESENTATION
ERYKAH BADU
WED 27JUNE
VAN MORRISON
SINGS THE BLUES
FRI 29 JUNE
RONNIE WOOD & FRIENDS
CELEBRATING THE CHESS RECORDS STORY
SAT 30 JUNE
TOM JONES
PERFORMING HIS CRITICALLY ACCLAIMED ALBUM PRAISE & BLAME
& TRACKS FROM HIS NEW ALBUM SPIRIT IN THE ROOM
SUN 1 JULY
FEATURED VENUES
- HMV HAMMERSMITH APOLLO -
- O2 SHEPHERDS BUSH EMPIRE -
THE ROBERT CRAY BAND
TUE 26 JUNE
ERIC BIBB
WED 27 JUNE
NICK LOWE
THU 28 JUNE
SOUTHSIDE JOHNNY & THE ASBURY JUKES
FRI 29 JUNE
BRAND NEW HEAVIES
SAT 30 JUNE
^
of late-night intimacies and more bar-
becues, the couples let their guards
down, then their hair, then a few other
things.
A sense of urgency informs their
union: for Kenny and Sharon, keeping
the roof over their heads and staying
off the crack; for Mary, getting
through another day without driving
off the road into a ditch out of the
sheer boredom and futility of life; for
Ben, a new start. The characters
become pleasantly complex via their
inter-relations. And despite the apoca-
lyptic ending, this is not a gloomy play;
there is little ill-feeling.
In the end, Detroit is let down by its
own comedy it feels lightweight,
held back from being the tragi-comedy
it should be. Thankfully, itgoes light
on meta-blame the consumerist
American way, bankers and so on are
let alone. But it also leaves you wonder-
ing quite what it wanted to do, quite
where its beef lies. The acting is exu-
berant and exciting, though, and
makes it well worth a view.
W
RITTEN by American
playwright Lisa DAmour for
Chicagos brilliant
Steppenwolf Theatre
Company, Detroit was a finalist for the
2011 Pulitzer Prize for Drama and
received gushing reviews in the US.
Now at the Nationals tiny Cottesloe
Theatre, directed by Steppenwolfs
formidable Austin Pendleton but with
an English cast, I worried that the
actors accents would ruin the whole
thing and that a play about American
suburban dystopia would seem out of
place on the South Bank. But Detroit
is, by and large, a success. It shimmers
with almost-but-not-quite-obvious
meaning; its right-on and funny, and
unexpectedly subtle.
The setting is the suburban back Sharon (Claire Dunne) and Kenny (Will Adamsdale) in Detroit.
T
wo Days In New York is probably the least
catchy title of all time. Marginally less catchy,
even, then Two Days in Paris, the popular
film of which this is the sequel. Indeed, this
is as much of a depressing slog to watch as it is for
the films characters to experience: for us, two
hours of watching a dysfunctional and often
frankly disgusting French family tear each other
to shreds in a Manhattan apartment.
Two Days is another heaping helping of Julie
Delpy, the queen of neurotic-erotic French
femininity and the films director. She is an artist
called Marion and lives with her new boyfriend
Mingus, played by Chris Rock, a radio show host,
and their their kids from previous relationships.
The action centres around the invasion of their
flat and lives by Marions family, visiting from
Paris to celebrate her new show, a mediocre
collection of photos of her in bed with previous
men. Her father is played by her real father,
Albert, who is a dripping, grinning, snoring,
marginally comedic parody of a sausage-
smuggling French patriarch. Her sister is an
insufferable nymphomaniac and the sisters
boyfriend is an offensive fool, who does drug
deals in Delpys flat in front of the kids, and
assumes Mingus loves early rap group Salt n
Pepa.
Apart from Mingus, nobody is particularly nice
probably in that intentional gross-weird-funny
way. Despite the odd laugh at how horrid the
French are and how mad Delpy is, this is a chore
best left alone.
Delpy film is a slog of
a family saga in NYC
FILM
EVEN THE RAIN
Cert 15 (English subs) | Steve Dinneen
hhhhi
E
ven the Rain is a wildly ambitious film that
interweaves the arrival of Christopher Columbus
in the New World with the modern-day
exploitation of the indigenous South Americans.
Gael Garca Bernal plays earnest young
filmmaker Sebastin, who is on location shooting a
movie about the greedy, sadistic Columbus. That
location turns out to be land-locked Bolivia, where
penny-pinching producer Costa, played by the
excellent Luis Tosar, thinks he can get away with
paying less for the hordes of extras the shoot
requires.
The film takes place at the time of the Bolivian
Water Wars in 2000, when thousands took to the
streets to protest against astronomical rises to their
water rates. The parallels between the brutal
colonial forces of the past and present are hardly a
lesson in subtlety but Scottish writer Paul Laverty
(Looking for Eric, Sweet Sixteen) resists painting an
anti-globalization polemic. Instead the film-within-
a-film acts as a microcosm of the complex
colonial/indigenous relationship, with the director
torn between doing the right thing and pushing
ahead with his important film, even if that
involves exploiting the native population himself.
It is a little worthy and some of the jarring
coincidences that drive the plot feel rather
contrived, but outstanding performances from
Bernal and Tosar (whose portrayal of Costa, as his
conscience veers between pragmatism and guilt, is
nothing less than stunning) ensure Even the Rain is
rarely less than gripping.
Even the Rain is blunt
but its no washout
Gael Garca Bernal is excellent as the earnest young director
Julie Delpy and Chris Rock as a couple in Two Days
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25
F
ORTNUM & Mason is as much
a part of London as Piccadilly
itself, oozing sweet nostalgia
and evoking centuries-old
luxury. But like any truly iconic
London institution, Fortnums
established in 1707 and holder of
more royal warrants than you can
shake a stick at has rolled with
the times.
Gorgeous displays, the best of new
food and drink products, as well as
beautifully finished games, trinkets
and soft furnishings have kept it
fashionably synonymous with the
best of British. Naturally, the crowd
who takes tea there includes the
social crme of London as well as
anyone after a proper treat.
Now, with the Queens Jubilee
approaching, Fortnums is embrac-
ing its centuries-old relationship
with the royal household by
launching a dedicated Diamond
Jubilee Tea Salon in the former St
Jamess restaurant. Designed by
David Collins the man behind the
gorgeous Wolesley and Connaught
Bar (among others) the Salon
evokes the Georgian charm of
Fortnums early 18th century her-
itage with a modern twist, retain-
ing its signature elegance with the
eau de nil and white colour
scheme.
And for the tea? A team of in-
house tea experts tea-ristas if you
will are on hand to guide guests
through the list of over 150 brews,
from single estate to rare tea;
blends or tisanes. Darjeeling
Jungpan or Jeju-Do Island
Seogwang Green anyone?
Hourglasses with different
coloured sands to match the tea
type (black, green or white) will be
used to measure brewing time. To
top it off, Jane Smyth, Fortnums
first female chef, will be serving up
her brilliant Battenberg cake and
other treats, including scones with
cream and jam.
Tea menus start from 38. To book,
call 0845 602 5694.
Fortnum & Masons Diamond Jubilee Tea Salon, with Jane Smyth.
For the next month City A.M. and Brewin Dolphin will be shining a spotlight
on a series of City Treasures as we celebrate some of the great places and
institutions around us. Many of them are established with a long
and interesting heritage yet they still exude their core values
based on service and excellence.
Monday is the Chelsea Flower Show.
www.brewin.co.uk
TEA AFICIONADOS WILL FLOCK TO FORTUMS FOR THE JUBILEE
- FORTNUM & MASONS-
Thames Diamond Jubilee Pageant
2pm, Sunday 3 June, Battersea Bridge
One of the highlights of the Jubilee weekend will
be the Thames Pageant, where up to a thousand
boats will gather on the river, from the smallest
rowing boat to giant military vessels. The flotilla
will make its way down the Thames, starting at
Battersea Bridge at 2pm and making its way to
Tower Bridge by 6pm. An estimated 30,000 people
will make the water-bound voyage, with hundreds
of thousands cheering them along from the river
banks. www.thamesdiamondjubileepageant.org
Jubilee Beacons
Monday 4 June, 10pm, across the country
Another of the integral celebrations is the
lighting of a network of over 4,000 special Jubilee
beacons giant bonfires that will snake across
the country, with the Queen lighting the final
one at 10.30pm in central London. Similar
beacons will be lit at 10pm across the
Commonwealth, with the furthest afield in the
UK located in Shetland. Highlights will be the
lighting of beacons across Hadrians wall (starting
at 10.10pm) and atop the highest peaks in each of
the countries in the UK Ben Nevis, Snowdon,
Scafell Pike and Slieve Donard (10.29pm). The
event organisers have even applied to the
Guinness Book of World Records for the longest
chain of Beacons ever. To see where your closest
beacon is located check the interactive map at
www.diamondjubileebeacons.co.uk.
Diamond Jubilee Festival at Battersea Park
Sunday 3 June, Battersea Park, 12pm
The best place to watch the boat pageant will be
the Thames banks at Battersea Park, where a
festival featuring vintage music, dance, crafts and
a funfair will begin at midday. Those hoping to
toast Her Majestys flotilla can find liquid
refreshments in a pop-up pub in the park. And for
food? Why, let them eat cake! A diamond
encrusted stand will hold 1,000 cakes and bakers
Konditor and Cook have created a portrait of the
Queen made of 3,120 cakes (one for each week of
her reign). Tickets 5 adults, children free. Go to
www.thamesdiamondjubileepageant.org for details.
Diamond Geezer
Until 9 June, WW Gallery, 34-35 Hatton Garden EC1N 8DX
For an alternative take on the celebrations, head
over to the WW Gallery, where you can find an
exhibition featuring portraits of Her Maj by
contemporary artists. Many of the paintings echo
the iconic sleeve for 1977 Sex Pistols single God
Save the Queen, with others poking fun at the
royal familys German roots. The gallery says the
ironic exhibition, while sometimes provocative,
is not explicitly anti-monarchy, instead
examining the paradox of our national
ambivalence towards the institution. Artists on
display include Cathy Lomax, Jasper Joffe, Alex
Michon and Dick Jewell.
www.wilsonwilliamsgallery.com
The Big British Bang at Selfridges
Until 24 June, Selfridges, 400 Oxford Street
If you feel like contributing to the health of the
British economy over the weekends festivities
through a little retail therapy, head over to
Selfridges, where there will be a plethora of
Jubilee-themed events. The famous department
store promises to host fashion exhibitions, pop-up
shops and special goings on in the Tiara Shop
within the Wonder Room. Go to
style.selfridges.com/store/london.
Steve Dinneen
Diamond Jubilee events
Free dinners for Diamond Wedding couples at
Clos Maggiore
3 King Street, Covent Garden, WC2E 8JD, tel: 020 7379 9696
One of Londons most romantic restaurants, Clos
Maggiore, is paying homage to the Queeens
Jubilee by offering a delicious four-course dinner
on the house to couples who can prove they were
married in 1952. The menu will feature produce
from the royal estate at Windsor Park and
perfectly-paired wines. For everyone else, the
menu costs 38 or 62 with wine pairing.
Extra-tasty street party at the Lamb Tavern
10-12 Leadenhall Market EC3V 1LR, tel: 020 7626 2454
On 3 June this City pub will host a bunting-tastic
street party with delights including a pop-up bar
serving specially brewed Youngs Jubilee Ale, live
music from a Brit pop band and a British buffet
featuring a smattering of the classics.
Royal pub quiz at the Cadogen Arms
298 Kings Road, SW3 5UG, tel: 020 7352 6500
Patriotic pub quiz fans should not miss this
opportunity to show their regal knowledge: on 4
June, loyal subjects will be tested on monarchic
history from 1952 up until the present day; the
winner will be crowned with royal knees-up
thanks to a princely 100 bar tab.
Volupte to host Jubilee Show
9 Norwich Street, EC4A 1EJ, tel: 020 7831 1622,
volupte-lounge.co.uk
The City cabaret supperclub is putting on a Best
of British show on 5 June: the day starts early,
with a traditional British afternoon tea at
2.30pm; a dinner menu of British comfort
classics at 8pm; and a burlesque show hosted by
British beauty Diamond Jubilee that should put a
firmly jolly end to the night.
Jubilee Tea at the Botanist
7 Sloane Square, SW1W 8EE, tel: 020 7730 0077
Sloane Square favourite has teamed up with
Marmite to create a celebratory Marmite
Afternoon Tea in homage to Her Royal Highness.
Available between 28 May-10 June, the tea includes
finger sandwiches, homemade cheddar, chive and
Marmite scones, and chocolate cake with Marmite
caramel buttercream. The Botanist is also celebrat-
ing the Jubilee with a range of aperitifs named
after members of the royal family.
Diamond Lunch at Butlers Wharf Chop House
36e Shad Thames, SE1 2YE, tel: 020 7403 3403
Butlers Wharf Chop House is offering a special
Diamond Jubilee lunch on 3 June that has been
created especially for the occasion to showcase
the best of British produce. The lunch includes
English sparkling wine on arrival, canaps, a
four-course menu, wine, water, tea or coffee.
225 per person for a window or terrace table
and 195 per person at all other tables.
Cantina del Ponte (next door)
At Butlers sister venue, terrace table tables will be
available for 120 per person on 3 June. Menus
include Prosecco on arrival and a four-course lunch.
Zoe Strimpel
Where to eat like a queen
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SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive European Challenge
Cup Rugby Union 10pmTest Cricket
12amSuper League 2amTest
Cricket 4amEuropean Challenge
Cup Rugby Union 5.30am-6am
Premier League World
SKY SPORTS 2
6pmUEFA Champions League Final
Preview 2012 7.30pmLive Super
League 10pmUEFA Champions
League Final Preview 2012
11.30pmFootballs Greatest
Managers 12amAmericas Cup
World Series Venice 12.30am
European Challenge Cup Rugby
Union 2amUEFA Champions
League Final Preview 2012 3.30am
Footballs Greatest Managers
4am-6amSuper League
SKY SPORTS 3
7pmTight Lines 8pmLive PGA
Tour Golf 11pmEuropean Tour Golf
1amAmericas Cup World Series
Venice 1.30amPGA Tour Golf
4.30amAmericas Cup World
Series Venice 5amRoad to
London 5.30am-6amATP Tour
Uncovered
BRITISH EUROSPORT
6.30pmLive WTA Tennis 8.15pm
Diving 9.15pmCycling 9.45pmLive
Cycling 12am-12.30amCycling:
Giro dItalia
ESPN
5.15pmNBA Basketball: Indiana
Pacers v Miami Heat. 7.15pmNBA
Tonight 7.45pmPress Pass 2012
8.15pmBundesliga Special
Jurgen Klopps Champions 8.45pm
Jose Mourinho The Best Coach in
the World 10pmBundesliga 11pm
MMA Live 11.30pmPress Pass
2012 12amESPN Kicks: MLS
12.15amBundesliga 1.15amESPN
Kicks: Extra 1.30amEuroleague
Basketball Magazine 2amFIBA
Basketball 2.30amMMA Live 3am
Live UFC 4.15amAMA Supercross
5.15amNBA Action 5.45am-6am
ESPN Kicks: Extra
SKY LIVING
6.30pmCSI: Crime Scene
Investigation 7.30pmBattle of the
Brides 8.30pmCougar Town 9pm
Criminal Minds 10pmCSI: Crime
Scene Investigation 11pmBones
12amThe Love Machine 1am
Ladyboys 1.50am Criminal Minds
2.40amMedium3.30amBones
4.20amCriminal Minds
5.10am-6amJerry Springer
BBC THREE
7pmDoctor Who 8.30pmSnog,
Marry, Avoid? 9pmLip Service
10pmEastEnders 10.30pmFamily
Guy Best Freakin Episodes
12.30amRussell Howards Good
News Extra 1.15amSnog, Marry,
Avoid? 1.45amLee Nelsons Well
Good Show2.15amAngry Boys
2.45amLip Service 3.45amRussell
Howards Good News Extra
4.30am-5.25amBritain Unzipped
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmThe Big Bang
Theory 8.30pm2 Broke Girls 9pm
FILMThe Beach 2000. 11.20pm
Shameless 12.25amThe Big Bang
Theory 1.30amScrubs 1.55am
How I Met Your Mother 2.20am
Rules of Engagement 2.45am
Accidentally on Purpose 3.05am
Desperate Housewives 3.50am
90210 4.35amGreek 5.15am-6am
Switched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmStorage Wars 9pm
American Pickers 10pmAmerican
Restoration 11pmAmerican Pickers
12amStorage Wars 12.30am
Pawn Stars 1amSwamp People
2amThe Universe 3amIce Road
Truckers 4amHeir Hunters
5am-6amAncient Discoveries
DISCOVERY
7pmBear Grylls 8pmWorlds
Toughest Expeditions with James
Cracknell 9pmWhale Wars 10pm
Gold Rush 11pmRiver Monsters
12amBear Grylls 1amWhale Wars
2amWorlds Toughest Expeditions
with James Cracknell 3am
Deadliest Catch 3.50amIce Pilots
4.40amWheeler Dealers
5.30am-6amDestroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmSay Yes to the Dress 8pmI
Didnt Know I Was Pregnant 9pm
19 Kids and Counting 10pmWorlds
Worst Mom11pmI Didnt Know I
Was Pregnant 12am19 Kids and
Counting 1amWorlds Worst Mom
2amI Didnt Know I Was Pregnant
3amSay Yes to the Dress 4amA
Baby Story 5am-6amBirth Stories
SKY1
7.30pmThe Middle 8pmModern
Family 8.30pmThe Simpsons 9pm
A League of Their Own 10pmGlee
12amRoad Wars 1amAirline USA
2amBrit Cops: Frontline Crime UK
2.55amCaribbean Cops 3.45am
Body Language Secrets 4.35am
Raising Hope 5.05am-6amDont
Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News
6.30pmBBC London News
7pmCHOICE The One Show:
BBC News
8pmEastEnders
8.30pmWould I Lie to You?
9pmHave I Got News for You
9.30pmNot Going Out
10pmBBC News
10.25pmRegional News
10.35pmThe Graham Norton
Show11.20pmThe National
Lottery: 18 UK Millionaires
11.35pmThe Matt Lucas Awards
12.10amEastEnders 2.05am
Weatherview2.10amSign Zone:
Silk 3.10amSign Zone: Question
Time 4.10am-6amBBC News
6pmEggheads
6.30pmAntiques Road Trip
7.30pmGreat British Menu
8pmCoast: The Western Isles
and Shetland.
8.30pmGardeners World
9pmCHOICE Maestro at the
Opera
10pmEpisodes
10.30pmNewsnight
11pmThe Review Show
11.45pmWeather
11.50pm Later with Jools
Holland
12.55amTaken
2.20amBBC News 4.15am-6am
Close
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmPoms in Paradise
8.30pmCoronation Street
9pmPiers Morgans Life
Stories: Lulu
10pmITV News at Ten
10.30pmLondon News
10.35pmFILMRaw Deal:
Action thriller, starring Arnold
Schwarzenegger. 1986.
12.30amThe Store; ITV News
Headlines
2.35amFILM Unleashed 2005.
4.15am-5.30amITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.30pmUnreported World
7.55pm4thought.tv
8pmCome Dine with Me
9pm8 Out of 10 Cats
9.30pmVery Important People
10pmCHOICE Alan Carr: Chatty
Man 11.10pmStand Up for the
Week 11.55pmFILMTeam
America: World Police 2004.
1.40amRandom Acts 1.45amMy
Name Is Earl 2.05amMy Name Is
Earl 2.25amDirty Sexy Money
3.10amDirty Sexy Money 3.50am
St Elsewhere 4.35amDeal or No
Deal 5.30am-6.15amCountdown
6pmHome and Away
6.30pm5 News at 6.30
7pmCricket on 5: England v
West Indies; 5 News Update
8pmDirty Great Machines:
5 News at 9
9pmThe Mentalist: Lisbon
reconnects with her ex-fiance.
10pmCastle
10.55pmLaw & Order:
Criminal Intent
11.55pmInside Hollywood
12amSuperCasino
3.55amMotorsport Mundial
4.20amNicks Quest 4.45am
Nicks Quest 5.10amWildlife SOS
5.35am-6amWildlife SOS
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
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
25 26
24 18
16 25
10
29
16 19
29 30
12 15
39
22
26 14
7 23
16
8
13
10
34
9
9
17
6
35
12
6
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11
33
3
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ACROSS DOWN
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C H I P S S C A N T
H A H U W
A L A R M A O R T A
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S I L E N C E L O G
C C A U L K I
S E T S T E E P L E
T R T E S T V
A L I C E S T A G E
F L R L N
F I L L Y C E N T S
2 5 7 1 9 8 3
1 8 9 3 4 5 1 2
4 1 2 7 9 4 8
1 6 9 3 7 2 9
7 9 5 4 1 8
8 7 9 1 9 3 8 4
2 4 7 1 3 5
7 3 9 1 2 5 1
1 2 6 4 3 2 7
6 5 8 9 4 1 6 2
1 7 8 8 4 9 6
4
4
4
4
4
4
4
4
4
The nine-letter word was
PRIVATEER
1 Product of seabirds (5)
5 Food of a ruminant
regurgitated to be
chewed again (3)
7 Cause to be
embarrassed (5)
8 Goes at great speed (5)
9 Deserving of a
scratch (5)
12 Collapse caused by
high temperature (10)
16 Plant family which
includes the maple (4)
17 Bold and impudent
behaviour (4)
19 Item associated with
King Arthur (5,5)
22 Protrude outwards (5)
23 Means of com-
munication (abbr) (5)
24 Domestic birds (5)
25 Lad (3)
26 Skimmed (5)
1 Nepalese soldier (6)
2 Study of ancient
people through their
material remains (11)
3 Desert garden (5)
4 Muslim or Hindu
mendicant monk (5)
5 Crammed full of
people or things
(coll) (5-1-5)
6 Confront with
resistance (4)
10 Roman cloak (4)
11 The Underworld (4)
13 Colour of unbleached
linen (4)
14 Shallow basket used
when gardening (4)
15 Small amount (3)
18 Fable (6)
20 At no time (5)
21 Narrow to a point (5)
22 Rear-facing point
on an arrow (4)
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
THE ONE SHOW
BBC1, 7PM
Chris Evans and Alex Jones present an
outside broadcast from Royal Naval
Air Station Culdrose in Cornwall as the
Olympic flame arrives from Athens.
MAESTRO AT THE OPERA
BBC2, 9PM
The final of the baton-waving
challenge arrives and two celebrities
go head to head for the chance to
conduct Act 2 of Puccinis La Boheme.
ALAN CARR: CHATTY MAN
CHANNEL4, 10PM
American reality TV star Kim
Kardashian and 8 Out of 10 Cats team
captains Sean Lock and Jon
Richardson join Alan for chat.
TVPICK
26
TV & GAMES
cityam.com
FRIDAY 18 MAY 2012
1/4 ODDS
ON ALL CHANNEL
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Each-way 1/4the odds a place 1-2-3
All above races: Non-runner money back. Rule 4 may apply.
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6/1 Be Fabulous
13/2 Times Up
8/1 Blue Bajan
20/1 Electrolyser
33/1 Glens Diamond
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MONEY
BACK
IF YOUR HORSE FINISHES 2ND TO
SPIFER
Each-way 1/4 the odds a place 1-2-3-4
9/2 Spifer
6/1 Caucus
8/1 War Poet
10/1 Deauville Flyer
10/1 Easy Terms
11/1 Lyric Street
12/1 Bridle Belle
14/1 Sadeeks Song
14/1 Tepmokea
14/1 Warlu Way
16/1 Crackentorp
20/1 High Ofce
20/1 Waldvogel
22/1 Very Good Day
25/1 Itlaaq
28/1 Kinyras
Sign up in shop or visit
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them. Munich are 4/5 with Coral to
win the match and I cant see past
the favourites.
The worry is that Bayern finished
eight points behind Borussia
Dortmund in the Bundesliga and
were hammered 5-2 by the same side
in the German cup final last
weekend. Im not too concerned
about that final, though, as they
surely already had one eye on
tomorrows match.
Robbens had a strong season,
scoring 18 goals, and looks the value
in the first goalscorer market at 7/1
with Ladbrokes. He takes penalties
and would love nothing more than
to net at the Allianz Arena against
his old friends.
Neither team have a particularly
solid defence, so expect goals. The
last eight finals have all produced a
minimum of two and I fancy both
sides to get on the scoresheet.
The 2-1 Bayern win at around 8/1
on Betfair makes plenty of appeal
and I wouldnt put anyone off
buying Sporting Indexs total goals
quote at 2.65.
There are some fantastic
promotions from the bookmakers on
this match. Paddy Power are
refunding first/last goalscorer,
correct score and scorecasts if
Chelsea lift the trophy, while Coral
will refund the same markets if
Fernando Torres repeats his semi-
final feat of scoring the last goal.
Excelebration may well ruffle Frankels feathers
Arjen Robben looks
a decent bet at 7/1 to
score the first goal
FRIDAY 18 MAY 2012
27
THEPUNTER
SPORT TRADER
BEN CLEMINSON PREVIEWS THE CHAMPIONS LEAGUE FINAL AND BILL ESDAILE BRINGS YOU HIS BEST RACING BETS
cityam.com
BAYERN MUNICH...........................
CHELSEA........................................
Tomorrow 7.45pm - ITV1
nPointers
SHIROCCO STAR e/w 2.10pm Newbury (today)
RED CADEAUX 2.30pm York (today)
DEIA SUNRISE 3.45pm Newbury (today)
LETHAL FORCE 4.20pm Newbury (today)
GABRIELS LAD e/w 2.45pm Newmarket
(tomorrow)
EXCELEBRATION e/w 3.40pm Newbury
(tomorrow)
nPointers
Bayern Munich at 4/5 with Coral
Arjen Robben first goalscorer at 7/1 with Ladbrokes
Bayern Munich to win 2-1 at 8/1 on Betfair
Buy total match goals at 2.65 with Sporting Index
A
LTHOUGH Bayern Munich and
Chelsea are giants of European
football, the contestants of this
years Champions League final
finished just second and sixth in
their respective leagues.
Roberto di Matteo has made a
strong impression since taking the
reins at Stamford Bridge. The FA Cup
is already in the bag, but the Italian
may be looking for a new job in the
summer even if he delivers the
Champions League.
The Blues produced one of the
great battling performances in
European history to defeat Barcelona
in the semis and they will have to do
it the hard way again tomorrow.
Skipper John Terry, Branislav
Ivanovic, Raul Meireles and Ramires
are all suspended, while there are
injury worries with Florent Malouda,
David Luiz and Gary Cahill.
Chelsea still have plenty of quality
in their line-up and they will be
relying heavily on Didier Drogba and
Juan Mata to cause Bayern problems.
However, its their backline Im
worried about, as they are up against
a top quality attacking side.
Jupp Heynckes men also showed
fantastic character to come back
from two down against Real
Madrid in their semi-final second
leg, before progressing on spot
kicks. Arjen Robben was the star of
the show against his previous club
and hell be coming face-to-face
with former colleagues again
tomorrow.
Franck Ribery and Bastian
Schweinsteiger are other world class
players, while Mario Gomez has
netted 12 goals in this years
competition. Bayern also have the
advantage of playing at their own
ground and, for me, it all points to
the Germans lifting their fifth
European Cup.
Chelsea will be desperate to repair
the heartbreak from their penalty
shootout defeat to Manchester
United in Moscow four years ago, but
I think the combination of a
weakened squad and Bayerns
offensive prowess will count against
THE freak that is Frankel
returns at Newbury tomorrow
where he bids to defend his
unbeaten record and make it a
perfect 10 in the JLT Lockinge
Stakes at 3.40pm. However, it
hasnt all been plain sailing in
the run-up to this race as Sir
Henry Cecils superstar suffered
an injury on the gallops last
month.
Frankel now seems fine,
having worked impressively on
Newmarkets Rowley Mile, but
exercising with stablemates is
totally different to the blood
and thunder of a Group One
contest. He has always been
exuberant and wants to get on
with things, but there is no
substitute for a prep race and
if he does not switch off in the
first part of the race, he may
well find main market rival
EXCELEBRATION close
enough to cause him
problems.
Excelebration, who had a rear
view of Frankel three times last
season, has a definite fitness
advantage and, at 7-2 with
Coral, he represents excellent
each-way value. He is now under
the expert tutelage of Aidan
OBrien and it is reasonable to
assume that he might just find
the necessary improvement to
give Frankel fans a few worries.
Looking at this afternoons
action and Ed Dunlops
globetrotting RED CADEAUX
can land the Yorkshire Cup
(2.30pm), the third leg of the
QIPCO British Champions
Series at 11/4 with Coral. The
six-year-old was beaten a nostril
in last seasons Melbourne Cup
and followed that run with a
really impressive third place
finish in the Hong Kong Vase.
He showed his wellbeing on his
reappearance at Kempton a
fortnight ago and this 14
furlong trip looks right up his
street.
John Gosden has his team in
great nick at the moment and
Starscope is sure to start a
warm order in this afternoons
Swettenham Stud Fillies Trial
(2.10pm) at Newbury. She ran
an absolute cracker to finish
runner-up in the QIPCO 1000
Guineas, but isnt certain to
stay this 10 furlongs and I will
be taking her on with Hughie
Morrisons SHIROCCO STAR.
Darryl Hollands mount won
her maiden at this track last
October and although she has
to improve massively, the step
up in distance will help. I
expect her to make the
running and she could be hard
to peg back at what will be a
decent each-way price.
Gosden can get in the
winners enclosure with DEIA
SUNRISE in the 3.45pm. He
found just one too good at
Newmarkets Guineas meeting
and still looks dangerously well-
handicapped off his unchanged
mark of 79.
LETHAL FORCE finished
fourth in last years Coventry
Stakes and was an impressive
winner on his seasonal debut at
Bath last month. He can land
the Listed Carnarvon Stakes
(4.20pm) for Clive Cox.
Finally, its worth having a
few quid each-way at 20/1 on
Denis Coakleys GABRIELS LAD
in tomorrows
coralchampionsclub.co.uk
Sprint Trophy (2.45pm) at
Newmarket. He won his maiden
at Kempton and is very well-
regarded by his shrewd trainer.
You can follow me on Twitter
@BillEsdaile.
Robben
can come
back to
haunt his
former
club
nHot Tipping
Ben Cleminson had
three out of six winning
football ante-post bets
at 9/2, 9/1 and 11/1.
Bill Esdaile highlighted
three racing winners and
a second from just four
selections last week,
including one at 12/1.
FOOTBALL TRADER BEN CLEMINSON BRINGS YOU THE BEST BETS AHEAD OF THE NEW FOOTBALL SEASON
Punter | Sport
26
City to emerge from the
shadows of bitter rivals
IN BRIEF
Murrays a sore loser in Italy
nTENNIS: Britains Andy Murray
blamed a back injury after losing to
Richard Gasquet at the Italian Open.
The Frenchman came back to win the
third-round match 6-7 (2-7), 6-3, 6-2.
Murray said the niggle would not
keep him out of the French Open.
Borrowed clubs suit Snedeker
n GOLF: Lost luggage forced Brandt
Snedeker to use borrowed clubs as the
American beat Dane Thomas Bjorn
5&4 at the World Match Play in Spain.
Englands Ian Poulter and Justin Rose
also enjoyed wins in their opening
round-robin stage matches.
Mallinder pens new Saints deal
n RUGBY UNION: Northampton
director of rugby Jim Mallinder has
signed a new contract that will keep
him at Franklins Gardens until at least
2015. Mallinder has won four trophies
in five years with Saints.
Champ Stoner in shock quit call
n MOTORSPORT: Moto GP champion
Casey Stoner will retire at the end of
the season after falling out of love
with racing. The Australian, who leads
this terms standings after two races,
said: The sport has changed to the
point where I am not enjoying it.
Ainslie on cusp of historic win
n SAILING: Britains Ben Ainslie will
claim a record sixth Finn World
Championship if he can win two points
in todays final racing in Falmouth.
Ainslie won all three races yesterday.
G
E
T
T
Y
ULSTER scrum-half Ruan Pienaar
insists the Heineken Cup final under-
dogs are not reliant on him and his
fellow South African imports as they
prepare to collide with Leinster in
tomorrows historic all-Irish
European showdown.
World Cup winner Pienaars lethal
kicking has propelled Ulster to the
frontier of a monumental triumph,
not least in last months narrow
semi-final victory over Edinburgh
when his boot delivered 17 of
his sides 22 points.
Another Springbok,
hulking lock Johann
Muller, will lead them
into battle at
Twickenham against
a celebrated Leinster
side set to include
Jonny Sexton, Rob
Kearney and, fitness per-
mitting, Brian ODriscoll.
But Pienaar, whose heroics have
earned him a place alongside fly-half
Sexton and full-back Kearney on the
ERC European player of the season
shortlist, denies 1999 winners Ulster
are reliant on their imports.
I have never heard anyone say
that, said the 28-year-old, who was
part of the South Africa squad that
beat England to the 2007 World Cup
in France. It takes 23 players in a
squad on any given day to do some-
thing special.
Everyone, from the management
right down to the individual players,
Pienaar kicks
Ulsters import
critics to touch
has worked very hard to get here. You
cant single anyone out. And anyway,
we are well aware that we havent
achieved anything yet. We still have a
lot of hard work to do.
Leinster are the overwhelming
favourites to win the first Heineken
Cup final to be contested by two Irish
provinces and claim the trophy for an
unprecedented third time in four
years. They are also looking to
become the first team to win the
competition without losing a game,
yet decorated Toulouse coach Guy
Noves has issued a warning, say-
ing Ulsters progress is no fluke
and they should not be
underestimated.
It seems to me that
Ulster are a province that
have really redoubled their
efforts and I think last sea-
son they had already start-
ed to change direction,
Noves added.
I think theyve made huge
progress and wanted to become a
major Irish province, contrary to pre-
vious years when, from my view from
the outside, they seemed like the
poor relation of Munster and Leinster.
We knew that it was always diffi-
cult to play them at their ground but
they were still a team that didnt
seem complete in every sector.
Theyre not there by chance. The
results they got in the pool stages
maybe surprised people who werent
expecting it. But theyve backed them
up to become one of the best teams in
Europe, without question.
Pienaar contributed 17 of Ulsters 22 points in the semi-final win over Edinburgh
I
RIDE Be Fabulous in todays
highlight, the Sportingbet
Yorkshire Cup, which is the next
instalment of the QIPCO British
Champions Series. I have to be
honest, I dont know a great deal
about him as he was formerly
trained by Andre Fabre. All his best
form is on soft ground, so any rain
would boost his chances.
It looks a hot race with the likes
of Red Cadeaux, Harris Tweed and
Arctic Cosmos, so my horse will have
to be pretty good to win this first
its fantastic for everyone in racing
to see Frankel back in action. Hes a
truly great horse and even though
Excelebration has had a prep run
Frankel will beat him again.
Im at Newmarket tomorrow and I
ride an interesting one for Roger
Charlton called Mince in the
2.45pm. He was only beaten a head
over course and distance last time
and he should go close.
Harlestone Times is a solid
contender and he has an each-way
chance in the 1m6f handicap.
I was impressed with Noble
Mission when he beat me earlier
this month and he should win the
2.15pm. William Haggas runs
Mukhadram in the 5.05pm and if he
repeats the form of his second in
the Wood Ditton, he will definitely
be shedding his maiden tag in this.
Frankie Dettori is an
ambassador for the QIPCO
British Champions Series. For more
information, or to buy tickets, visit
www.britishchampionsseries.com
or call 0870 727 1234.
ROAD TO THE FINAL
Leinster Rugby
n Pool stage
Montpellier 16 - 16 Leinster
Leinster 38 - 13 Glasgow
Bath 13 - 18 Leinster
Leinster 52 - 27 Bath
Glasgow 16 - 23 Leinster
Leinster 25 - 3 Montpellier
n Quarter-final
Leinster 34-3 Cardiff Blues
n Semi-final
Clermont Auvergne 15-19 Leinster
Ulster Rugby
n Pool stage
Ulster 16 - 11 Clermont Auvergne
Leicester 20 - 9 Ulster
Ulster 31 - 10 Aironi
Aironi 20 - 46 Ulster
Ulster 41 - 7 Leicester
ASM Clermont 19 - 15 Ulster
n Quarter-final
Munster 16-22 Ulster
n Semi-final
Ulster 22-19 Edinburgh
71
Number of points
scored by Pienaar
in this years
Heineken Cup
RECORD-BREAKING former England
fly-half Jonny Wilkinson has been
hailed by Toulon captain Joe van
Niekerk as they prepare for tonights
Amlin Challenge Cup final against
Biarritz at the Stoop.
An all-French clash will have a
distinctly English flavour, with
Wilkinson one of a handful of ex-
pats in Toulons squad and former
Red Rose full-back Iain Balshaw
enjoying his third season at Biarritz.
Exceptional Wilkinson seeks
end to Toulons 20-year wait
He is one of those players who
only comes round every 10 years, if
that, said South African No8 Van
Niekerk of Wilkinson. To have him
in our team is exceptional.
The 33-year-old has a rival for most
influential Englishman at Toulon in
Steffon Armitage, the former
London Irish flanker named this
years player of the season in the
French top flight. A star-studded side
seeking its first major trophy for 20
years also includes Australian Matt
Giteau and All Black Carl Hayman.
FRIDAY 18 MAY 2012
28
BY FRANK DALLERES
BY SPORTS DESK STAFF
ENGLAND boss Stuart Lancaster
has been slammed by his Leicester
counterpart Richard Cockerill for
revealing details of fly-half Toby
Floods injury.
Cockerill called Lancaster naive
for disclosing privileged
information as the Tigers prepare
for next weeks Premiership final.
The England head coach this
week admitted Flood could miss
next months tour of South Africa
Tigers boss mauls Lancaster for
going public on Floods injury
as he was struggling to recover
from an ankle problem.
Its very unhelpful, said
Cockerill. He is on club duty, its
our business and its not helpful
there is speculation surrounding
his fitness.
I would not be telling anyone
else that information. Its privileged
and should be kept private.
Tensions reached a head on
Wednesday when Leicester denied
England physio Phil Pask access to
Flood to assess his condition.
BY FRANK DALLERES
SPORT
cityam.com
Results
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FRANKIES
THOUGHTS
FRANKIE DETTORI
True great Frankel is too good for Excelebration
time up. Ive got four other rides at
York this afternoon, but theres
nothing that really catches my eye.
The big race of the weekend is the
JLT Lockinge Stakes at Newbury and
WEST HAM manager Sam Allardyce
has warned his players not to let the
importance of tomorrows 90m
play-off final against Blackpool
threaten their quest to return to the
Premier League at the first attempt.
The Hammers are hot favourites to
record a third win of the season over
the Tangerines, whom they have
already smashed eight goals past in
two Championship fixtures, when
they meet at Wembley.
Weighty expectations have at
times seemed to hinder Allardyces
men this term but the former
Blackburn, Newcastle and Bolton
boss has called on his players to use
it to their advantage.
Its a one-off game. Its a fabulous
game to be involved in, particularly
for the players. We are the favourites
with all the pressure on us, so we
have to handle that as we have done
all season, he said.
But it wont be easy, we will treat
them with the utmost respect and
make sure we try to expose their
weaknesses as early as we can. Weve
got to live with the pressure it
should bring the best out of us and
not be one of those games where we
freeze on the big stage.
West Ham hope to join Reading
and Southampton in promotion
from the second tier, which is worth
an estimated 90m in extra income.
The east Londoners have been
boosted by the return to fitness of
midfielder Jack Collison, who scored
twice in the semi-final first leg
against Cardiff but dislocated his
shoulder in the second match.
Everyone who has been playing
recently is fit, the squad is strong
and we just have one final day to
select the side, Allardyce added.
Its been a long wait since we
played Cardiff but we are rested,
eager and hopefully we can give our
best performance of the season.
Allardyce, meanwhile, confirmed
he has taken legal steps over
comments Blackburn manager Steve
Kean, his former assistant, appeared
to make about him on an amateur
video published online this week.
He said: Its disappointing but its
in the hands of my lawyers and they
are taking action that is appropriate
under the law of the land.
Allardyce: We
mustnt freeze
in 90m final
BAYERN Munich star Franck Ribery
has heaped pressure on Chelsea
ahead of tomorrows Champions
League final, claiming the Blues
would struggle to recover from
another near miss in the com-
petition Roman Abramovich
prizes highest.
The success or failure of
Chelseas season and
perhaps manager
Roberto di Matteos posi-
tion rests on whether
they can muster an
improbable European victo-
ry against the Bavarian giants
on their turf at the Allianz Arena.
It may also represent a last chance
for some of the west London sides
stalwarts, such as Frank Lampard
and Didier Drogba, to lift the one
major trophy to elude them since
owner Abramovichs revolu-
tion in 2003.
Wounds remain raw
from the heartache of
four years ago, when
they lost the final on
penalties to Premier
League rivals Manchester
United, and Ribery believes
more anguish could wreak
colossal psychological damage.
Abramovich has wanted to win
the Champions League for so long,
said the France winger. If they lose it
on Saturday then it will be brutally
tough. It would ruin them in the
head and really lower morale.
We are definitely not thinking
about losing. If you lose then you are
distraught. If we win the
Champions League then we
can forget about not winning
the league or cup this year.
Nobody would care about
that anymore.
Bayerns campaign
also hinges on this
clash, with a wounding
5-2 defeat to
Bundesliga cham-
pions Borussia
Dortmund
Defeat will ruin Chelsea,
in the German cup final leaving this
their only chance to avoid a second
consecutive barren season.
For Chelsea, upsetting the first
team to play a Champions League
final in their own stadium represents
their only route into next years
competition, having fallen
two places short of a
domestic top four finish.
They have already
defied the odds to over-
come Barcelona with a
masterclass in tenacity
capped by a glorious
night at Camp Nou, but
Bayerns former Blues
winger Arjen Robben has
warned that pragmatic
approach will not work again.
We expect them to be very defen-
sive and tight, but we have played
often against such sides and we have
just got to try to find a way
through. We have got to try
and take the game to
them, said the Holland
forward.
I saw their semi-final
against Barcelona and
they did well in a defen-
sive capacity you could
say they parked the bus
in their own area.
But I have to disappoint
them because they are not going
to win it.
Both teams will be severely deplet-
ed by suspensions, with Chelsea miss-
ing captain John Terry, fellow
defender Branislav Ivanovic and mid-
fielders Raul Meireles and Ramires.
Centre-backs David Luiz and Gary
Cahill are, however, set to be fit
following injury.
Bayern, who overcame
Barcelonas Spanish arch-
rivals Real Madrid in the last
four, are without defensive
trio Holger Badstuber, David
Alaba and Luiz Gustavo.
Broads six of the best give England edge
Bayern stars taunt Blues as Robben warns
old team they face Champions League woe
relieved of his temporary post
whether they beat Bayern Munich
in tomorrows final or not.
The decorated 65-year-old, whose
impeccable club CV includes seven
league titles with three different
teams in Italy and Spain, quit the
England job in February after a row
with the Football Association.
That dispute centred on his
loyalty to Chelsea skipper John
Terry, who was stripped of the
national captaincy over racial abuse
FRIDAY 18 MAY 2012
30
SPORT
cityam.com/sport
BY FRANK DALLERES
THE MANAGERIAL uncertainty
threatening to overshadow
Chelseas bid for Champions League
immortality escalated yesterday
when former England boss Fabio
Capello emerged as a candidate to
replace Roberto di Matteo.
Italian media reported Capello
had held talks with Blues chiefs
about taking charge in the summer,
when Di Matteo is expected to be
BY FRANK DALLERES
ALL-ROUNDER Stuart Broad
admitted his pride after a six-wicket
haul on an encouraging opening
day of the first Test against West
Indies elevated him to a select group
of England greats.
The Nottinghamshire man took
6-72 as England reduced the
tourists to 243-9 at Lords, with
evergreen batsman Shivnarine
Chanderpaul offering by far the
sternest resistance with a stubborn
87 not out.
With that Broad became only the
seventh man to have achieved a
century and a five-fer at the home of
cricket, joining the esteemed likes of
2005 Ashes hero Andrew Flintoff and
former captain Sir Ian Botham.
Following Freddie [Flintoff] and
Beefy [Botham] in the England
dressing room is a huge honour,
said Broad, who was overshadowed
by paceman James Anderson (2-59) in
the morning session after England
won the toss.
But more important today is to
have got nine wickets on the first
day of the Test. Winning the toss and
bowling, youre thinking, Can you
bowl them out for a hundred? But
you know Lords is never like that.
Its a bit of a patience game. We were
aiming for seven wickets in the day;
to pick up nine were delighted.
Anderson skittled Kieran Powell
for five and claimed Kirk Edwards
lbw for just one before opener
Adrian Barath (42) and Darren Bravo
(29) dug in to carry West Indies to
83-2 at lunch.
Broads first wicket came soon
after when Anderson caught Barath,
and Bravo fell next when
Chanderpaul refused his call for a
single off Ian Bell and Graeme
Swann removed the bails with both
batsmen at the strikers end.
Veteran Chanderpaul, 37, who
came into the match with an average
of 66 at this ground, dodged lbw
calls off Anderson and Swann as he
built a fifth-wicket partnership of 81
with Marlon Samuels, before the
latter edged Broad to England
debutant Jonny Bairstow at point.
Broad took four more scalps,
captain Darren Sammy (17) the only
one to reach double figures and Fidel
Edwards succumbing to the final
ball of the day, as Chanderpaul
extended his Lords love affair.
BY FRANK DALLERES
Di Matteos fate could
rest on tomorrows
final in Munich
Collison is fit following a shoulder injury
Capello emerges as a candidate to
9
Trophies won by
Chelsea since
Abramovich
takeover
12
Goals scored by
Bayerns Mario Gomez
in this seasons
competition
G
E
T
T
Y
BY FRANK DALLERES
31
EUROPEAN SHOWDOWN
SET TO HAVE SEISMIC
IMPACT ON CAPITAL
European competition
Victory for Bayern will propel Spurs
into next terms Champions League,
although they will have to negotiate a
play-off. Chelsea glory would render
their fourth-placed finish worthy only
of another Europa League campaign
Manager
Harry Redknapps position looks
secure but might a failure to rejoin
Europes elite competition prompt a
re-evaluation by him or club?
Players
The real worry for Tottenham is that
stars Gareth Bale and Luka Modric will
be lured away if Champions League
football slips out of reach. It would
also make targets, such as Ajaxs Jan
Vertonghen, harder to attract
says Ribery
Broads haul saw him join a distinguished group of England players
Its very unhelpful. Its privileged
information and should be kept private

FRIDAY 18 MAY 2012

allegations, which he denies, and
Capello has been out of work since.
Former Barcelona coach Pep
Guardiola is also thought to be on
Blues owner Roman Abramovichs
shortlist, but the Spaniard, who
resigned this month, has indicated
he intends to take a sabbatical.
Di Matteo has led the team to the
FA Cup and only their second ever
Champions League final since
taking the reins after the sacking of
Andre Villas-Boas in March.
Liverpool open Martinez talks
LIVERPOOL are set to open talks
with Wigan manager Roberto
Martinez about the Anfield vacancy
after being granted permission by
the Latics yesterday.
Reds chiefs made an approach to
Wigan chairman Dave Whelan 24
hours after sacking Kenny Dalglish
over their worst Premier League
finish for 18 years. The clubs
American owners, Fenway Sports
Group, are thought to have
shortlisted a handful of candidates,
including Swanseas Brendan Rogers.
Former Chelsea manager Andre
Villas-Boas is a high-profile
contender, while Norwichs Paul
Lambert and Newcastles Alan
Pardew have also been linked.
When Liverpool sacked Kenny I
have to say I thought they would be
knocking on the door and sure
enough they are, said Whelan. I
would love to keep him but I have
told Roberto he has my permission
to speak with Liverpool. If Liverpool
are serious then I may lose him.
Spaniard Martinez, 38, has won
praise for keeping unfashionable
Wigan in the top flight on a modest
budget since taking charge in 2009.
Liverpool icon Dalglishs second
spell in charge was terminated just
one year into a three-year deal.
BY FRANK DALLERES
replace Di Matteo
G
E
T
T
Y
cityam.com
Leicester boss blasts England over Toby Flood: Page 28
Tomorrows result is not just about
Chelsea; Tottenham fans will also be
watching through their fingers at a
match that looks sure to have a
profound and far-reaching impact
throughout London. Heres why:
European competition
Chelsea have been Champions
League ever-presents throughout the
Abramovich era but winning the
competition is their last hope of
preserving that record. Defeat would
see them enter the Europa League
instead as FA Cup winners
Manager
Roberto di Matteo may be shipped
out whether he wins or not, but would
be harder to shift if he became the
first Chelsea manager to lift the trophy
Players
A sixth-place finish in the Premier
League and an ageing squad are likely
to mean a busy summer regardless