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BUSINESS WITH PERSONALITY
HIGHER taxes and an anti-business
attitude are driving French bankers
and high-fliers out of Paris and into
London, City A.M. has learned from
recruiters and estate agents.
Socialist President Francois
Hollandes planned 75p top tax rate
was the flagship policy in his elec-
tion campaign but instead of rais-
ing cash from the super-rich, it could
simply drive them abroad.
Prime Minister David Cameron has
pledged to capitalise on the French
leaders policies, this summer saying
he would roll out the red carpet to
French firms put off by Hollandes
perceived anti-business stance.
London-based recruitment firm
Astbury Marsden, which specialises
in the banking sector, has seen a 51
per cent rise in French-language
applicants in recent months, com-
pared with the same period of 2011.
There is a definite spike in French-
speaking candidates, said managing
director Jonathan Nicholson.
We have not seen similar increases
in candidates from other countries,
so it may well be connected to Mays
change in government in France.
Surveys from TotalJobs.com have
found 42 per cent of French workers
are willing to move to the UK.
www.cityam.com FREE
Similarly, only 32 per cent of the
global workforce would be happy to
work in France compared with 49 per
cent who are willing to work in the
UK, while London is consistently seen
as the most popular city among
workers internationally.
International recruiter Robert
Walters told City A.M. that some of
the largest French firms are lobbying
fiercely against the tax, threatening
to move abroad unless exemptions
are found for their top earners
although families enthusiasm for
the move may be dampened by high-
er living costs in London than in
Paris.
Meanwhile estate agency Savills has
reported rising numbers of French
buyers in London since the election
of President Hollande and predicts
the trend will grow stronger next
year.
There is no doubt that French buy-
ers have made up a significant pro-
portion of our clients this year, said
Savills Lindsay Cuthill.
Whereas previously they were not
committed long-term, often renting
small houses or apartments, since
the election they are buying larger
houses and looking to stay for
longer.
And she expects more families to
move in the middle of 2013, ahead of
the next school year.
I suspect that the election came at
the wrong time for many families,
who had already committed to the
school year. I predict a sharp rise in
moves next year in a second round of
relocations.
MAN INVESTMENTS IS STILL EUROPES TOP HEDGE FUND
FTSE 100 5,776.60 CLOSED DOW M13,124.67 -33.30 NASDAQ 3,073.19 +3.40 /$ M1.58 -0.01 / 1.26 unc /$ M1.25 -0.01
CLARKE RULES THE ROOST
ISSUE 1,704 TUESDAY 28 AUGUST 2012
EUROPE READY
FOR RYDER CUP
See Sam Torrances golf column: Page 23
See Page 12
EXCLUSIVE
BY TIM WALLACE
Certified Distribution
02/07/12 til 29/07/12 is 131,194
FRENCH BANKERS
ESCAPE HOLLANDE
David Cameron upset President Hollandes allies when said he will welcome French firms who prefer the UKs more business-friendly tax regime
LONDON VS PARIS
MICHELIN STARRED RESTAURANTS
LONDON: 66
PARIS: 118
TRAVEL- CITY CENTRE ONE-DAY TRAVEL PASS
LONDON: 10.60
PARIS: 8.75
RENT*
*A luxury two bedroom unfurnished apartment per month
LONDON: 2,800
PARIS: 1,924.72
CINEMA TICKET FOR INTERNATIONAL RELEASE
LONDON: 12
PARIS: 8.37
A CUP OF COFFEE (INCLUDING SERVICE)
LONDON: 2.70
PARIS: 3.35
A LITRE OF UNLEADED GASOLINE
LONDON: 1.36
PARIS: 1.40
A LITRE OF MILK
LONDON: 0.79
PARIS: 1.13
MILK
DRINKING - PINT OF LAGER
LONDON: 3.50
PARIS: 6.30
IN BRIEF
Spanish GDP revised downwards
nRevised data published yesterday
showed Spains economy contracted
by more than previously estimated in
2010, and grew by less than first
published in 2011, reigniting fears
about the countrys ability to rein in its
public deficit. The struggling
economy, which may require a full
bailout, shrank 0.3 per cent in 2010,
more than the 0.1 per cent decline that
had been estimated. And the
countrys statistics institute INE said
that growth last year was only 0.4 per
cent, instead of the 0.7 per cent rise
that had previously been reported.
French unemployment worsens
nThe number of people out of work
in France rose for the 15th month in a
row in July to reach its highest level in
more than 13 years, in the latest grim
news for Frances stagnating
economy. Labour ministry data
released yesterday showed that the
number of registered jobseekers in
mainland France rose by 41,300 last
month to 2.987m, in the biggest
monthly increase since the 2008-09
financial crisis.
Troika visits bailed-out Portugal
nThe so called troika of lenders the
EU, European Central Bank (ECB), and
International Monetary Fund will
return to Portugal today to conduct
the fifth quarterly review of its 78bn
rescue package. It is still possible that
Portugal could require another bailout
package, while its leaders may
request more time to meet the deals
conditional austerity targets.
ECB official: bond buying
wouldbe within mandate
A SENIOR official at the European
Central Bank (ECB) has reassured
Germany that any new bond buying
will not amount to back-door fund-
ing of struggling Eurozone states.
Joerg Asmussens remarks, made
in Hamburg yesterday, will heighten
expectations that the ECB is set to
act to bring down ailing govern-
ments borrowing costs.
Under the framework of the new
programme, the ECB will only buy
bonds with short maturities,
Asmussen said.
The whole discussion will be led
by the requirement that any con-
cerns about treaty-violating state
financing are dispelled. We will only
act within our mandate.
The ECBs governing council is
meeting next Thursday and will dis-
cuss measures to ease the debt crisis.
Jens Weidmann, the chief of
Germanys central bank, warned on
Sunday that more ECB bond-pur-
chases could become addictive like
a drug.
Such a policy is for me close to
state financing via the printing
press, Weidmann told the German
magazine Der Spiegel.
The euro edged slightly upwards
against the dollar yesterday as some
investors decided that weak eco-
nomic data has increased the
Ryanair seeks rivals help in bid
Ryanair is seeking regulatory approval for
its proposed takeover of Aer Lingus by
asking at least six airlines to operate
alternative services on some of the Irish
flag carriers routes. Ryanair has
approached competitors, asking them to
consider providing competition on routes
to and from Dublin.
Aviva activists say directors must go
An activist group of Aviva policyholders
and private shareholders is hoping to
reignite the row that prompted the
insurers chief executive to stand aside,
calling on another four directors to leave.
Almost four months after Andrew Moss
stood aside following a shareholder revolt
over pay and performance, the group that
led criticism of his tenure has turned its
sights on other board members.
Statoil finds oil in North Sea
Statoil has raised its production aspirations
in Norway after confirming the discovery of
a large field in the North Sea. The
Norwegian state-controlled oil group said
yesterday that it was seeking to produce
more oil domestically in 2020 than now.
Still boys only at the top
Britains biggest companies may have
heeded calls to end the male dominance
of boardrooms, but the glass ceiling
remains firmly in place when it comes to
their top executive positions.
Travelodge rival knocks at the door
As if losing control of 49 of its hotels was
not bad enough, Travelodge may have to
give some to a rival it has fought for the
past 25 years. Premier Inn is understood to
be examining up to half a dozen of them.
Greece settles with Siemens
It is not quite the bailout booster Greeks
were hoping for, but Athens has extracted
330m from Siemens, the German
engineering group, in settlement of
corruption charges.
Disney may buy out Paris park
The Walt Disney Company is considering
buying out the loss-making Disneyland
Paris theme park complex. Disney
currently owns 39.8 per cent of the French
business, which opened in 1992.
Regulators rethink pre-IPO chatter
US securities regulators are reviewing
whether to ease limits on what companies
can say ahead of initial public offerings,
after lawmakers complained small
investors were kept in the dark during this
year's botched stock sale by Facebook.
US car makers to face Canada strikes
The Canadian Auto Workers said workers
at Chrysler, General Motors and Ford have
voted to go on strike if necessary to back
up the unions bargaining committees.
THE FEDERAL Reserve gave a boost
to the governments balance sheet
in the first half of the year,
according to accounts released
yesterday, whose unprecedented
publication came after pressure to
increase transparency following
the credit crunch.
The US central bank generated
$47.5bn profit in the six months to
June, of which it gave $46.4bn to
the federal government.
This profit came overwhelmingly
from $16.6bn of income on
mortgage-backed securities, and
$23.4bn of revenue from interest
on federal government debt.
The Fed agreed to publish more
regular accounts last year after
heavy pressure from Republicans
including Mitt Romney.
This release came as investors
and analysts looked forward to the
Jackson Hole symposium of US
central bankers, and its
centrepoint: governor Ben
Bernankes Friday speech.
Ahead of Jackson Hole, Chicago
Fed president Charles Evans
claimed yesterday that the Fed
must expand the money supply
further to boost employment.
Meanwhile, the Fed said it is
considering delaying until
September 2013 the requirement
that medium-sized banks conduct
annual stress tests.
Fed gave $46bn
half-year profit
to Washington
Joerg Asmussen appeared to pave the way for Mario Draghis ECB to resume purchases
2
NEWS
BY BEN SOUTHWOOD
BY JULIAN HARRIS
To contact the newsdesk email news@cityam.com
E
VERYONE knows that Sweden is a
social-democratic paradise,
where taxes are high, the welfare
state is big and everyone enjoys
the benefits. That doesnt mean its
true. In recent years, research like that
compiled in Richard Wilkinsons and
Kate Picketts The Spirit Level has
painted Sweden and its Scandinavian
neighbours as political role models.
The reality, as always, is more
complicated. Thanks to a new
publication from the Institute of
Economic Affairs, the other side of the
story is harder than ever to ignore.
The Surprising Ingredients of
Swedish Success, written by Nima
Sanandaji, dissects the beneficial
impact of Swedens recent free market
reforms, such as its system of school
vouchers, still, tragically, a step too far
for the UK. It also traces back Swedens
cultural strengths its strong work
Sweden turns the page and Scandinavian noir explains why
TUESDAY 28 AUGUST 2012
ethic and high levels of interpersonal
trust to before its welfarist heyday.
Indeed, Sanandaji finds that those
decades of the twentieth century
when Sweden aggressively expanded
the size of its state the late 1960s and
1970s were followed by economic
decline. In 1975, Sweden was the
fourth richest industrialised nation
measured on GDP per capita. By 1993,
it had fallen to 14th.
Perhaps commentators would find
this less surprising if they had paid
more attention to the undercurrents
in the countrys recent cultural out-
put. Swedish authors like Henning
Mankell and Stieg Larsson have
become household names in the UK,
but few stop to consider the context of
their stories: a universally corrupt
social underbelly, where crooked offi-
cials abuse their power and structures
built with visions of centrally-man-
aged harmony act only to conceal
monstrous cruelty.
In The Girl With the Dragon Tattoo,
Lisbeth Salander is raped by her state-
appointed guardian. John Ajvide
Lindqvists vampire novel Let The
Right One In turns a state-planned
housing estate into a concrete maze of
horrors. Mankells Kurt Wallander
investigates crimes only to uncover
ragged holes in the social fabric.
These books are fiction, and they
exaggerate Swedens shadows for
to Swedens more successful integra-
tion record in the first half of the twen-
tieth century. Easier to demonise the
corruption in an ageing family busi-
ness than to consider how punitive
taxation has prevented new entrants
to the marketplace from shining light
on the darkness for half a century.
The Victorian art critic John Ruskin
once wrote that the only trustworthy
autobiography of a great nation is its
art. Swedens novelists show there is
far more to its recent history than the
triumph of the big state, just as its
politicians are now demonstrating the
power of free market reforms.
Hopefully Swedens next chapter can
uphold market liberalism without los-
ing the bleak brilliance of its fiction.
effect. But they also reflect real con-
cerns, and to the attentive reader offer
their own counterpoint to the idea of
Sweden as a paradise of paternalism.
The first book of Larssons Millennium
trilogy, which in Swedish is literally
titled Men Who Hate Women, is pep-
pered with statistics on the rate of vio-
lent crime against women in Sweden.
Swedens failure to integrate its immi-
grant population haunts Mankells
first Wallander book, Faceless Killers.
Ironically, despite peering into the
darkness, many of these authors
would resist the very solutions and
explanations that the IEAs new
research report advocates. Seeing the
Swedish dream in decay, it is tempting
to try to shore up its failing timbers,
rather than to confront, for example,
the connection between a rigid labour
market and the difficulty of integrat-
ing recent immigrants, or the contrast
chance of more stimulus from
European authorities. The euro hit a
session high of $1.2535, after the
German Ifo index of business morale
sank for a fourth straight month in
August to reach its lowest level since
March 2010.
This clearly shows that Germany
cannot escape unharmed if the rest of
the Eurozone falls into a deep reces-
sion, said Boris Schlossberg of BK
Asset Management in New York.
Policymakers may now temper their
insistence on austerity and instead
pursue more stimulative policies.
Germanys Wolfgang Schaeuble said
yesterday that he and fellow Eurozone
finance ministers will form a working
group to discuss proposals such as a
new fiscal and banking union.
Meanwhile Chancellor Angela
Merkel and her foreign minister
Guido Westerwelle both made pleas
for German politicians to restrain
their comments over Greece. Earlier,
Christian Social Union leader
Alexander Dobrindt a political ally
of Merkels said that he expects
Greece to leave the Eurozone as soon
as next year.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
EDITORS
LETTER
MARC SIDWELL
marc.sidwell@cityam.com
follow me on twitter: @marcsidwell
nAllister Heath is away
NOKIA shares hit their highest point
in more than four months yesterday
on suggestions the Finnish phone
manufacturer could be the biggest
winner from Apples court victory
over Samsung last week, while the
Korean firms value plummeted.
Analysts said that Nokia which
teamed up with Microsoft last year to
launch a range of handsets running
the Windows Phone software could
benefit from being one of the few
companies to make phones not run-
ning Googles Android operating sys-
tem, with the ruling having wider
implications for the mobile phone
industry.
Apple said yesterday it is seeking
bans on eight models of Samsungs
smartphones, including its Galaxy S
devices, and may take action against
other Android makers.
A California court ordered Samsung
to pay over $1bn (630m) to Apple on
Friday after the Korean firm was
found to have infringed a number of
patents for technology used in the
iPhone.
Samsung shares fell 7.5 per cent in
trading in Seoul yesterday, wiping
Samsungs loss
is Nokias gain
after Apple win
BY JAMES TITCOMB
7.6bn off the firms value.
Google broke its silence on the rul-
ing yesterday in an attempt to reassure
handset makers. Most of [Apples
claims] dont relate to the core
Android operating system, and several
are being re-examined by the US
Patent Office, the web giant said.
But with the prospect of US bans on
some products from Samsung
Androids most successful partner
and further lawsuits, Nokia, which has
seen its market share obliterated by
Apple and Samsung, could gain.
As Android and Apple tear each
other apart, Microsoft has been wait-
ing in the wings and is in a very good
position to move in and entice users to
switch from Android to Microsoft,
said Nomuras Richard Windsor.
LONMIN MINE UNREST MOVES INTO THIRD WEEK AS VIOLENCE SPREADS
CASH strapped
platinum miner
Lonmin reported
further unrest in its
Marikana mining
district yesterday,
with reports of
fresh intimidation
of workers in its
Eastern mines.
Violence, which
claimed the lives of
34 people twelve
days ago, had
largely been
confined to its
Karee mine in the
West. Yesterday it
said workers had
faced
intimidation in
the East.
Nokia
21 Aug 22Aug 23Aug 24Aug 27Aug
2.80
2.60
2.70
2.30
2.40
2.50

2.66
27Aug
IBM yesterday agreed a cash deal to
acquire Kenexa, the human
resource software manager,
marking its entry into the sector.
The deal will see the computing
behemoth pay $46 per share,
valuing the smaller firm at $1.3bn
(823m), and comes after recent
forays into the HR management
market from other tech giants.
Kenexa reported a net loss of
$1.7m in the last quarter.
SAP bought Kenexas competitor
SuccessFactors for $3.4bn
December last year, while Oracle
acquired another rival, Taleo, in a
IBM pays $1.3bn cash to acquire
HR software manager Kenexa
BY BEN SOUTHWOOD
$1.9bn deal in February.
Analysts predicted that the
scramble for the social enterprise
market was heating up. This is a
big step, said Rebecca Wetteman
at Nucleus Research. This brings
the arms race up a notch.
Historically IBM has been seen as
a relatively conservative technology
firm, focusing on email, databases,
operating systems and
middleware but new boss Ginni
Rometty is starting to make her
imprint on the firm.
Nomura analysts suggested that
moves by competitors into IBMs
strongholds have pushed it into
more adventurous expansion plans.
BEST BUY yesterday announced it
had reached an agreement with
founder Richard Schulze to allow
him to prepare a bid to buy the
struggling electronics retailer.
The US company, which said last
week that talks between the
parties had broken down after
Schulze claimed Best Buys
proposals were completely
unacceptable, announced that it
had satisfied all of his requests.
Best Buy will give Schulze access
to the companys accounts, as well
as waiving Minnesota law to speed
up a deal. The firms shares, which
fell after last weeks poor results,
closed up 3.2 per cent.
Best Buy nears
deal after talks
JAMES TITCOMB
MAJOR swaps players will face new
risk management requirements
under rules finalised by the
Commodity Futures Trading
Commission (CFTC) yesterday.
The rules, which the agency
approved unanimously in a closed-
door vote, will dictate the way major
swaps industry participants
document and reconcile their swaps
trades. They also detail how swaps
will be valued and netted.
Proper documentation of swaps
is critical to reducing risk, the CFTC
said. The CFTC was tasked by the
2010 Dodd-Frank financial reform
with increasing transparency and
limiting risk in the swaps market.
US agrees risk
rules for swaps
BY CITY A.M. REPORTER
TUESDAY 28 AUGUST 2012
3
NEWS
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Call 08080 00 00 52
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iPhone 4S
now and ask about next day delivery or go in store today
IN BRIEF
AOL to buy back $600m in stock
nAOL said yesterday it will buy back
$600m (390m) of stock and pay a
dividend of $5.15 per share as part of
its plan to return shareholders $1bn
that it received by selling patents to
Microsoft. The company has been
aggressively giving back to investors
in recent months. It won a bitter proxy
battle against activist hedge fund
Starboard Value and pledged to give
the entire $1bn patent sale proceeds
to shareholders. The deal will see AOL
pay Barclays $600m upfront to
execute the repurchase this year, with
Barclays to deliver the first 4m shares
by 30 August.
HK regulator acts against E&Y
nHong Kongs securities regulator
said yesterday it had launched legal
proceedings against Ernst & Young
(E&Y) for failing to produce
accounting records related to a
Chinese company as specified, the
latest auditor to run into trouble over
a Chinese client. Ernst & Young
claimed it did not have the relevant
records on Standard Water, which
were held in China by its joint venture
partner, Ernst & Young Hua Ming, the
SFC said in a statement, adding the
auditor then said the documents could
not be produced due to restrictions
under Chinese law. E&Y was not
immediately available to comment.
AN OUSTED director at carpet maker
Victoria has criticised the firms board,
saying management is not acting in
shareholders interests ahead of a cru-
cial vote at Fridays annual meeting.
Alexander Anton, a member of the
firms founding family who stepped
down recently over a disagreement on
pay, told City A.M. that Victorias board
used every trick in the book to
remove him and two other non-execu-
tive directors on 8 August. He added
that investors feel the company is
being run for the benefit of manage-
ment rather than shareholders.
Anton and another ex-director
Geoffrey Wildes have the support of
Victorias biggest shareholder New
Fortress Finance for a return to the
board just weeks after they left.
Investors will vote on their appoint-
Victoria director
hits out as vital
meeting looms
BY JAMES TITCOMB
ments in October. Anton says he has
two-thirds of support for the motion
that would also remove interim direc-
tors David Garman and Roger Hoyle
and chairman Katherine Innes Ker.
Friday will test shareholder resolve
ahead of the later vote, with Garman
and Hoyles full appointments to be
decided, alongside re-elections of direc-
tors Alan Bullock and Barry Poynter.
Victoria, which made the carpet for
the royal wedding, saw Anton, Wildes
and Innes Ker join in March along with
former CBI president Sir Bryan
Nicholson. The three men were made
to resign after proposing a scheme to
reward them for selling the firm.
Innes Ker said: We urge all share-
holders to ensure their voice is heard
so that they are not subjugated to the
will of minority shareholders, adding
Antons plan gave him extraordinary
rewards simply for being on the board.
CNBC
COMMENT
STEVE SEDGWICK
TIFFANY & Co, the New York-based
jeweller, cut its sales and profit
forecasts for the second
consecutive quarter yesterday after
its well-heeled customers trimmed
spending in an uncertain economy.
The group lowered its full-year
profit outlook by around four per
cent, saying it expects sales growth
during the end-of-year holiday
season to be slower.
In the quarter, global sales rose
Tiffany lowers profit forecast
but pushes ahead with growth
BY KASMIRA JEFFORD 1.6 per cent to $886.6m (561.4m),
while net income rose two per cent
to $91.8m, slightly shy of Wall
Street forecasts. Sales at US stores
open more than a year fell five per
cent, including a nine per cent
drop at its Fifth Avenue store.
Sales also declined five per cent
in the Asia Pacific region, as even
luxury shoppers in China cut back.
Despite the cautious forecasts,
Tiffany is pushing ahead with its
expansion and plans to open 28
stores by the end of the year.
ITALIAN bank UniCredit
became the latest bank to
admit it is under investigation
by the US authorities for
breaching Iranian sanctions,
making public statements over
the weekend.
And French banks BNP
Paribas and Credit Agricole
both revealed they are
carrying out internal probes
into potential breaches of US
regulations although they
would not say whether or not
this is related to sanctions
against Iran.
UniCredit is being
investigated by the US
Treasurys office of foreign
assets control, the Justice
Department and the New York
BNP and Credit Agricole start
internal law-breaking probes
BY TIM WALLACE
County district attorneys
office.
Its German unit HBV is
accused of breaking rules over
trade and transactions with
Iran.
The revelations come in the
same month as UK-based
developing markets specialist
Standard Chartered paid
$340m (215.2m) to the New
York state department of
financial services to settle
charges over sanction-
breaking.
Separately US authorities are
investigating RBS and
Germanys Commerzbank,
while HSBC has been accused
of inadvertently enabling
money laundering with its lax
controls in countries including
Mexico, Syria and Iran.
M&T BANK yesterday announced
its plan to buy Hudson City
Bancorp in a $3.7bn (2.34bn)
deal that could lead to further
consolidation among regional
banks in the US.
The acquisition which has
yet to be approved by
shareholders or regulators
pushed shares in New Jersey-
based Hudson up 15.7 per cent
and New York States M&T up
4.76 per cent yesterday.
M&T plans to shrink Hudson
Citys $43.6bn balance sheet by
roughly one-third as it
liquidates an investment
portfolio.
It expects to gain about $25bn
in deposits and $28bn in loans
from the merger.
M&T Bank to
buy Hudson
BY TIM WALLACE
Tiffany shares rose 7.8 per cent after it posted a better-than-expected 1.6 per cent sales rise
TUESDAY 28 AUGUST 2012
5
NEWS
cityam.com
Something for everyone in
forecasting equity markets
F
OR such a highly paid group
of professionals the great
and the good of the
financial markets have been
behaving in somewhat lemming-
like fashion once again.
Rather than judging
important allocation decisions
based on economic and stock
fundamentals, its been more
about will they or wont they.
There we were, for example, in
the early part of last week
marching up to the top of the
hill on the prospect of fairly
soon action from the Fed unless
the data improved and by the
end of the week, according to the
latest FOMC minutes, we had
traipsed back down again as
James Bullard told CNBC those
minutes were a bit stale.
Leading the charge for the
bears are the Bob Janjuahs of the
world. To recap, Janjuah of
Nomura thinks between now and
November the S&P will move
from its current level to 1,000-
1,100 or between 300 and 400
points lower. Theres lots of
reasons including weak global
growth, too much monetary and
fiscal stimulus optimism, US
fiscal cliff ramifications being
built into corporate earnings
numbers and the US drought,
along with other weather-related
shocks, creating food price
inflation. All very jolly stuff.
The good news for the longs
though is for every yin theres a
yang, and number crunching
from Piper Jaffrays Technical
Research team makes them think
that conditions are now right for
a new bull market to emerge and
the S&P to break 2000-2007 highs.
So for those of you who want a
clear direction for equities after
over a decade of being stuck in a
range theres something for
everyone. Enjoy the ride!
Steve Sedgwick, Anchor, SquawkBox
Europe, CNBC
THE DEPARTMENT for transport plans
to formally approve the handover of
the West Coast Main Line as early as
tomorrow, brushing off pleas from
MPs and Virgin tycoon Sir Richard
Branson to delay the move.
Sir Richard took to the airwaves yes-
terday, calling on the government to
allow time for politicians to re-exam-
ine FirstGroups winning bid to run
the route from December.
The founder of Virgin Group,
whose Virgin Trains joint ven-
ture stands to lose its remain-
ing rail franchise under the
decision, wants a brief stay
so the debate can take
place and the facts can
be examined.
He also called on the
Prime Minister to get
some sense into the
DfT, adding that
Virgin would run the
route on a not-for-prof-
it basis while the bids
are reconsidered.
We will fight until
theres no longer a
No delays on
the West Coast
train handover
BY MARION DAKERS
fight to be had, he told the BBC. We
may not succeed, but this is the first
time weve been really outspoken in
saying something is wrong at the
department for transport.
A spokesperson for the DfT acknowl-
edged the efforts, but insisted that
the winning bidder was decided by a
fair and established process and no
reason has been advanced to convince
DfT not to sign the agreement.
FirstGroup chief executive Tim
OToole said he was pleased by the
firm stance, adding yesterday that his
firm won the bid fair and square.
But the departments refusal to
budge will disappoint the public
accounts committee, which has
also asked for a delay in order
to probe the details of the
franchise bids, and the Labour
party, whose shadow trans-
port secretary Maria Eagle
said yesterday that MPs
should be given a chance to
raise concerns over the deci-
sion in parliament.
Virgin on furious: spurned rail
tycoon Sir Richard Branson
NY Times sells
off About.com
LONDON-BASED business-to-
business service firm Blur Group
is preparing a listing on Aim in the
next few months, with founder
and chief executive Philip Letts set
to make a small fortune.
Letts, who founded Blur in 2009,
has appointed Singer Capital
Markets to advise on the listing,
which could launch as early as this
year. He currently owns around 70
per cent of the firm, which teams
technology companies up with
advisory firms. Blur expects to
raise around 5m from the listing.
We are confident that we have
Blur chief to show tech firms can
list in UK as he prepares Aim IPO
BY JAMES TITCOMB the right foundations in place to
ensure that Blur Group becomes
the successful, UK headquartered,
global player that the UK tech
sector needs, Letts said. He has
said in the past that he is
determined to prove that Britain is
an appropriate environment for
nurturing young tech firms.
Letts, 46, became the first
British CEO of a Silicon Valley firm
when he took the reins at Tradaq
in 2000, and has headed five
internet businesses since 1991.
Other investors who stand to
profit include ITV chairman
Archie Norman and Odeon chief
executive Tim Schoonmaker.
TUESDAY 28 AUGUST 2012
7
NEWS
cityam.com
Philip Letts owns about 70 per cent of Blur Group having founded the business in 2010
TORY MP Tim Yeo has added to a
growing chorus of disapproval over
the governments blanket ban on a
third runway at Heathrow.
The former environment minister
told the BBC yesterday that while a
decision is delayed, Britain is
falling behind in the race to
increase air travel capacity.
Former Labour chancellor Alistair
Darling also criticised the coalitions
stance, adding that we cant keep
putting this decision off.
BY MARION DAKERS
THE NEW York Times Company has
sold its information website
About.com to online media
company IAC, in a $300m (190m)
cash deal.
IAC, which also runs the Ask
Jeeves website, beat rival bids from
Answers.com and Demand Media.
NYT has made a loss on the
website after buying it for $410m in
2005, with About.com seeing
advertising revenues drop after
Google changed the way its search
engine handled questions. A merger
of Ask.com and About.com would
still create the sixth-biggest website
globally, according to comScore.
BY JAMES TITCOMB
Yeo: We need
a new runway
UNITED BISCUITS enjoyed robust
profit and revenue growth in 2011,
its annual accounts disclosed, a
performance that is sure to buoy
its private equity owners hopes of
selling off parts of the firm.
Pre-tax profit for the maker of
McVities digestives and Penguin
biscuits rose 4.7 per cent to
156.6m in 2011, based on revenue
which grew 5.5 per cent to 1.12bn.
This positive news will provide a
fillip for owner Blackstone, which
has been trying to sell the firm for
some two years, with suitors over
the years including Chinese giants
Bright Foods and Wahaha.
Recently the US private equity
behemoth has been lining up a
deal which involves hiving off the
smaller salty snacks business, after
failing to complete a deal selling
the group as a whole.
Analysts expect Kellogg and
Intersnack, the German maker of
Pom Bear crisps, to bid for the
snacks branch, which is valued at
roughly 500m.
Blackrock acquired United
Biscuits for 1.6bn in 2006.
United Biscuits
impresses with
2011 upswing
BY BEN SOUTHWOOD
HERTZ Global Holdings yesterday
announced it has struck a deal to buy
Dollar Thrifty for $2.3bn (1.45bn),
ending a protracted battle to take con-
trol of the rival car rental firm.
The merger will see Hertz pay $87.50
per share in cash for Dollar Thrifty,
representing an eight per cent premi-
um to its closing price of $81 on
Friday.
This is more than double what
Hertz first offered for the firm in 2010
before Thrifty shareholders rejected
the $1.2bn offer.
The group tried again last year with
a raised offer of $2.2bn but withdrew
in October after it struggled to win
antitrust clearance from regulators.
We are pleased to have finally
reached an agreement with Dollar
Thrifty after a lengthy but worth-
while pursuit, Hertz chairman
Dollar Thrifty
accepts $2.3bn
Hertz merger
BY KASMIRA JEFFORD Mark Frissora said.
Well be a stronger global competi-
tive player with a full range of rental
options not only in the US but in
Europe and other markets given
Dollar Thriftys strong international
presence.
As part of the deal, Hertz said it will
sell its Advantage Rent a Car discount
unit to Franchise Services of North
America and Macquarie Capital.
Lazard was brought on board last year to
lead Hertzs renewed efforts to buy Dollar
Thrifty, working alongside Bank of America
Merrill Lynch and Deutsche Bank.
Mark McMaster, vice chairman of US invest-
ment banking and Antonio Weiss, global
head of investment banking, were the prin-
ciple nancial advisors on the deal together
with director Navin Bhargava.
McMaster has worked at Lazard for more
than two decades and oversees industrials,
consumer, retail and nancial sponsors.
Over the past year, he has been advising the
board of Tyco, the US industrial conglomer-
ate, on its ongoing strategy to break up into
three companies. Meanwhile Weiz, a Yale
and Harvard graduate who joined Lazard in
1993, has worked on a string of heavy-
weight deals including Krafts 12bn acqui-
sition of Cadbury in 2010 and US brewer
InBevs 26bn takeover of Belgiums
Anheuser Busch in 2008. The pair also
worked together in advising 3G Capital, the
New-York based investment rm backed by
Brazilian billionaire Jorge Paulo Lemann,
on its $4bn buyout of Burger King in 2010.
JP Morgan and Goldman are acting as
nancial advisers to Dollar Thrifty.
ADVISERS
MARK MCMASTER
LAZARD
Hertz, led by Mark Frissora (left), is buying Dollar Thrifty, headed by Scott L Thompson
DAVID LLOYD LAUNCHES HIGH STREET GYM CHAIN
David Lloyd Leisure, the
tennis-based health
and fitness club group,
said yesterday it plans
to launch a chain of
smaller studios on
British high streets to
target busy workers
looking for more
flexible workout
regimes. The group,
controlled by London &
Regional and Caird
Capital, said it will
invest 500,000 in
opening three trial
sites, with the first site
due to open in Putney
next month.
The DL Studios will be
non-membership
based and offer
personal training
sessions as well as
group exercise classes.
Hertz Global Holdings
21 Aug 22Aug 23Aug 24Aug 27Aug
15.0
14.0
14.5
12.5
13.0
13.5
$
14.21
27Aug
BILLABONG, the struggling
Australian surfwear chain,
yesterday unveiled a turnaround
plan in an attempt to fend off a
A$694m (456m) private equity
bid, even as it reported it had
swung to a full-year loss.
Chief executive Lorna Inman
laid out a four-year strategy to
simplify the business, focus on
core brands and expand its online
presence in order to return to
positive sales growth.
However, she warned that
trading conditions would remain
challenging in the coming year.
Billabong reported a full-year
net loss of A$276m compared with
a profit of A$119.1m a year earlier.
Private equity firm TPG
BY KASMIRA JEFFORD
International made an offer in July
to buy the company for A$695m,
five months after Billabong
rebuffed a previous, higher offer
that valued the company at
A$841m.
Inman said talks with TPG were
ongoing. The group has previously
said the latest offer is too low.
Shares in the company have
fallen more than 75 per cent in the
past 18 months, as sales have
fallen in US and Europe after
consumers cut back on spending
and brands lost some of their
appeal with young shoppers.
Its business also suffered after it
made an ill-timed global expansion
just before the financial crisis in
2008 that left it with a heavy debt
load.
TUESDAY 28 AUGUST 2012
8
NEWS
cityam.com
Billabong unveils rescue plan
as TPG takeover talks continue
ITS just two days before entries to
the Square Miles first ferret racing
contest close, so youd better get
your entry in quick if youre interest-
ed.
The lack of your own ferret is no
excuse. The Hants and Berks Ferret
club, which promotes the welfare
and protection of working and
rescued ferrets, will provide anyone
who signs up with their very own
furry creature for the day.
The event scheduled for
lunchtime on 14 September will
pit the ferrets against each other in
a series of obstacle courses.
And there are exacting rules in
place to ensure the winner will be
undisputed. The fastest
On your marks:
City gets ready
for ferret racing
ferret must clear the line with all
four paws to be deemed worthy of
the Square Mile championship
title just one paw past the post
wont do it.
The rules may be tough, but its
all in aid of a good cause.
Money raised from the ferret
racing will go towards host law
firm DAC Beachcrofts goal of
raising 25,000 for The Princes
Trust charity.
Companies are being invited to
sponsor either a ferret or a race,
with a Ferret Trophy up for grabs
for the sponsor of the winning
ferret.
Companies sponsoring a ferret
and/or race will be invited to attend
on the day, have a drink and watch
the racing unfold. Flat caps and
tweed optional.
For more information, or to sign
up visit:
www.dacbeachcroft250.com/
whats-on/event/city-ferret-
racing-london/
A QUIET summer day in the City was last week livened up by the presence of rugby stars
including England captain Chris Robshaw (top right). Seven Investment Management hosted
the one-day work experience, which emphasised the importance of planning life after rugby.
Fighting your way out of a scrum is a useful skill in these banker-bashing times.
RUGBY STARS DESCEND ON THE CITY
Got A Story? Email
thecapitalist@cityam.com
10
cityam.com
cityam.com/the-capitalist
THECAPITALIST
With the Paralympics set to open
tomorrow The Capitalist is looking
forward to falling into the grip of sports
obsession once again. But if youre still
reminiscing about Team GBs Olympic
glories, and want to give some money
to a good cause, have a look at the
Mayors Fund for London auction. For
City types, its no surprise that the
bowler hat and pinstriped suit-wearing
City Wenlock statue is proving a top
draw, with the latest bids at over
16,730. But if youre feeling a tad less
conservative you could always
celebrate Londons punk roots with
Punk Mandeville a snip at just over
5,100. Both are signed by the charitys
patron, Mayor of London Boris Johnson,
and at 2m tall would be sure to put any
neighbourhood gnome collection in the
shade. To bid, go to:
http://memorabilia.london2012.com
Facebooks massive drop in share
price - from an IPO launch at $38
to a close of $19.27 on Friday clearly
hasnt dented the social networking
giants confidence. While other firms
might have retreated to lick their
wounds, Facebook has unveiled plans
for a massive 420,000 square foot
campus annex, roughly the area of
eight football fields. Space-age, high-
tech buildings have become the norm
for web giants, however. Apple has
proposed a massive spaceship
campus in Cupertino, California, while
Google recently opened new offices in
Venice, California, at the renowned
Binoculars Building designed by
architect Frank Gehry. Facebooks new
design also comes from Gehry, famous
for the Guggenheim Museum in Bilbao,
Spain. Plans for the new headquarters
in Menlo Park were due to be sent to
local city officials for approval
yesterday. No doubt Facebook will be
hoping they like them.
TUESDAY 28 AUGUST 2012
A ferret must clear the line with all
four paws to be declared champion
IN BRIEF
Russias Rusal cuts its capacity
nRussian group Rusal, the worlds
largest aluminium producer, said
yesterday that it would cut capacity
three per cent by the year-end and
was taking a charge on its investment
in Africa, as it grapples with weak
prices and rising power costs. Rusal,
which produces nine per cent of the
worlds primary aluminium, has been
hurt by persistently weak prices for
the metal used in drink cans, car parts,
aircraft and iPads. Slack demand and
overproduction have pushed prices
close to two-year lows. It reported a
net second-quarter loss of $37m
(23.4m) yesterday, including a
$167m impairment related to its
Friguia alumina refinery in Guinea.
Sinopec eyes injection of assets
n Sinopec Group, parent company of
Asias largest refiner, Sinopec, is
working on a plan to inject its
overseas assets into its listed unit, its
chairman said yesterday, a move
aimed at cutting the units exposure to
unprofitable refining at home. We
are evaluating our upstream assets.
Once it is done, we will inject them
into the listed company as soon as
possible, Sinopec chairman Fu
Chengyu said. Fu said Sinopecs
current cash flow was not enough to
fund the purchase of all upstream
assets from the group.
EUROPES five biggest hedge funds
boosted their market share of man-
aged assets to 40 per cent last year,
further concentrating investor
assets into a handful of hedge fund
managers.
The assets of this years top five
managers Man Investments,
Brevan Howard, BlueCrest Capital
Management, Winton Capital
Management and Standard Life
Investments increased to $165bn
(104.4bn) at the end of June 2012,
according to figures released yester-
day.
This equates to 40 per cent of total
hedge fund assets of those surveyed
and an increase on the market
share of 38 per cent posted last year.
The total assets managed by the
top five is a 53 per cent increase on
the $108bn of assets managed by
the then-top five when the annual
survey was conducted in 2010.
The survey found total assets
under management had increased
seven per cent from mid-2011 to hit
Top hedgies run
40pc of market
BY MICHAEL BOW $414bn this year.
The study by The Hedge Fund
Journal, now in its seventh year, sur-
veyed 50 hedge funds across Europe.
Topping the table again this year
was Man Investments, which has
been beset by a spate of downgrades
by equity analysts and rating agency
Moodys of its parent Man Group
over the past two weeks.
It increased its assets by 21 per cent
from $34.1bn to $41.4bn at the end
of June.
British hedge fund Brevan Howard
took second place after increasing
its assets by 14 per cent, while
BlueCrest Capital Management and
Winton Capital Management both
went up a spot to three and four
respectively.
The biggest riser in the top ten was
Standard Life Investments, leaping
from ninth to fifth after growth in
its Global Absolute Return Strategies
(GARS) fund.
The data also showed UCITS funds
now account for 18 per cent of total
assets under management of the
funds surveyed, equal to $71.6bn.
Man Group chief executive Peter Clarke has helped boost fund assets by 21 per cent
AQUANTUM Group, a
quantitative index provider led
by a group of former scientists,
yesterday announced plans to
roll out its own fund
management business.
The firm, which has a UK
office in Oxford in addition to
bases in Munich, New York and
Luxembourg, will start offering
managed futures funds for high
net worth individuals and other
investors later this year.
It follows on from its core
business offering of index
products following a solid
uptake of them by third parties.
It had previously signed a
licencing agreement with Royal
Bank of Scotland boosting the
amount of money run using
Aquantum launches its own
fund management business
BY MICHAEL BOW Aquantum indices to $1bn
(633m).
The asset management
business, to be called
Aquantum AG, will have its
own management, supervisory
and advisory boards.
Its principals include former
Winton Capital Management
scientist Thomas Morrow,
former nuclear energy
researcher Dr. Oliver Podobrin
and former head of RBSs exotic
equity structuring and pricing
desk Moritz Seibert.
Morrow said: Given the
popularity of our indices, the
establishment of a full-scale
asset management business to
directly harness Aquantums
unique quantitative trading
expertise is a natural next
step.
TUESDAY 28 AUGUST 2012
12
NEWS
cityam.com
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THE ALTERNATIVE Investment
Market is set to list its first known
Kosovan marble miner after
quarrying firm Fox Marble Holdings
today announced the completion of
a 9.65m fundraising round.
Fox, which quarries marble in
Kosovo, said it had completed the
fundraising of 6.59m of ordinary
shares and 3.06m of convertible
loan notes and is set to start ordi-
nary share dealing this Friday.
It is the first known company with
operations centred in Kosovo to
achieve an Aim listing.
Chief executive Christopher Gilbert
said: With the proceeds from the
fund raising we can turn Fox Marble
into a world leader in marble.
The money will spent on a process-
ing plant and new equipment.
Fox Marble set
to list on Aim
BY MICHAEL BOW
HEDGE FUND JOURNALS EUROPE 50 ASSETS UNDER MANAGEMENT
Rank 2012 Rank 2011 Manager Assets Under Management
1 Man Investments $41.4bn
2 Brevan Howard $36.7bn
3 BlueCrest Capital Management $31.1bn
4 Winton Capital Management $28.5bn
5 Standard Life Investments $27.3bn
6 Blackrock $26.9bn
7 GAM $15.4bn
8 Brummer & Partners $14.2bn
9 Capula Global $13.0bn
10 Amundi $11.3bn (on 31 Mar)
1
2
3
4
5
6
7
8
9
10
1
3
4
5
9
2
6
7
11
NA
THE UKs services industry has suf-
fered a hugely disappointing per-
formance in the last three months,
with shrinking business and tum-
bling confidence, a survey of the
countrys biggest sector shows today.
Both consumer services and profes-
sional services reported that business
shrank in terms of volume and value,
the Confederation of British Industry
(CBI) research reveals.
Back in May, the same CBI survey
showed that firms expected business
to improve from June to August. A net
balance of seven per cent of respon-
dents in business services (such as
legal and accountancy firms) predict-
ed higher incomings, yet todays sur-
Survey reveals summer
setback for UK services
BY JULIAN HARRIS
vey reveals a devastating negative bal-
ance of 16 per cent reporting a fall in
the value of business over the period.
Optimism among these firms has
collapsed from a positive reading of
plus eight per cent back in May to
minus 11 per cent now.
And the story is even gloomier
among consumer services firms such
as restaurants and bars. Companies
optimism regarding their business sit-
uation worsened from a negative bal-
ance of two per cent in May, to minus
23 per cent in August.
Conditions in the service sector
have not improved as expected this
quarter, with firms now more nega-
tive about the overall business situa-
tion than they were three months
ago, said the CBIs Anna Leach.
Companies selling services to con-
sumers continue to face challenging
times, with price-cost pressures and a
weak business environment squeez-
ing profits.
Last week the CBI also reported bad
conditions in the manufacturing and
retail sectors. Orders dipped at UK fac-
tories this month, the CBI found,
while sales on the high street were
slightly down.
The news will be worrying for chan-
cellor George Osborne, who hopes the
economy can bounce back in the
third quarter of the year.
At the end of last week the UKs GDP
level for the second quarter of the
year was revised to a fall of 0.5 per
cent, up from the initial estimate of a
0.7 per cent drop.
INTERNATIONAL cash is flooding
into the London property market,
as foreign buyers capitalise on
weak sterling, a report released
today by Cluttons claims.
The property consultants
predict a 3.2 per cent annual
increase in prime central London
house prices, driven by cash
buyers in turn driven by the
weak pound.
Compared to the 2007 peak,
buyers from the Middle East now
face discounts of some 30 per cent
thanks to favourable currency
rates, while those from the Far
East find prime house prices as
much as 60 per cent lower.
The prime central London
property market continues to
buck the national trend, said Sue
Foxley, Cluttons head of research.
Strong annual growth is forecast
in spite of significant downward
International money bolsters
central London property boom
BY BEN SOUTHWOOD pressure on prices.
Foxley said that as well as
international demand, there was
upward pressure on the market
from both first-time buyers and
due to the Bank of Englands
funding for lending scheme (FLS).
A growing mortgaged first-time
buyer market means that we are
likely to see increased
competition for properties at the
lower end, which will have a far
reaching effect on the whole of
the supply chain, Foxley said.
FLS also appears to be re-
energising the debt financing
market.
The report threw cold water on
the idea of an Olympic rental
boom, saying that the expected
boost from tenants simply did not
materialise.
And Cluttons expect a one per
cent retrenchment from the
unsustainable growth in the
rental market seen in 2012.
THE PROPORTION of factories
reporting rising costs of credit
has fallen to its lowest rate
since 2007, an industry group
has revealed today.
The EEF hopes that its latest
survey marks a turning point in
the cost of borrowing for
manufacturers in the UK.
The balance of companies in
Fewest manufacturers since
2007 find rising credit costs
BY JULIAN HARRIS the sector finding an increase in
the cost of credit has fallen to
11.2 per cent from 21.2 per cent
in the second quarter, EEF says.
This balance has not been
lower since EEF began its credit
survey in quarter three of 2007.
However, there are still more
companies saying the cost of
finance is going up rather than
down, complained the groups
economist Lee Hopley.
SLOWER inflation may be behind
a slight easing in private sector
wage increases, Incomes Data
Services reported this morning.
The median pay award in the
three months to July slipped to
2.5 per cent, down 0.5 per cent.
The retail price index fell from
5.6 per cent last September to 2.8
per cent in June of this year.
Private wage
hikes easing
BY CITY A.M. REPORTER
TUESDAY 28 AUGUST 2012
13
NEWS
cityam.com
Cluttons says foreign buyers are benefiting from favourable exchange rates



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Foreign firms get no special
tax treatment, say lawyers
FOREIGN-OWNED firms are
linked to almost half of HMRCs
investigations into large
companies tax bills, according to
lawyers.
Pinsent Masons reckons the
figures rubbish claims that
revenue-collecting authorities
adopt a light touch approach to
chasing inwardly investing
companies for their tax
contributions.
HMRC investigates levels of tax
that the 770 largest businesses in
BY JULIAN HARRIS the UK may still have to pay, along
with the risk to the Exchequer
from companies litigating over
amounts of tax they have
overpaid.
From March last year HMRC had
identified 25bn at risk, of which
11bn concerned foreign-owned
companies, Pinsent Masons
claims meaning that 44 per cent
of the total could involve
negotiations with inward
investors to the UK.
HMRC actively targets foreign-
owned companies within the UK
to see if they owe any extra tax,
said the law firms head of tax
Jason Collins.
There is a popular myth that
HMRC and the Treasury are so
easily charmed by the presence of
foreign companies in the UK that
they are happy to accept any tax
payment that they get. That could
hardly be further from the truth.
The current regime can even
deter foreign companies from
investing in the UK, Collins added.
The enquiries to which HMRC
subjects these companies can be
incredibly tense, time consuming,
and, at times, confrontational.
ECONOMYS BIGGEST SECTOR IS FACING A TOUGH TIME
CONSUMER SERVICES
(Hotels, bars, restaurants etc)
BUSINESS SERVICES
(Accountancy, legal and marketing rms)
Expected
7%
Actual
-16%
InMay, a net balance of 7%expectedmore
business (interms of value) fromJune - August.
Yet a net balance of 16%have nowreportedlower
value of business fromJune - August.
Optimismhas plummetedover
the last 3 months
MAY
+8%
AUGUST
-11%
InMay, a net balance of 22%expectedmore
business (interms of value) fromJune- August.
Yet a net balance of 12%have nowreported
lower value of business fromJune - August.
Optimismhas plummetedover
the last 3 months
MAY
-2%
AUGUST
-23%
Expected
22%
Actual
-12%
S
O
U
R
C
E
:

C
B
I

S
U
R
V
E
Y
LONDONREPORT
TUESDAY 28 AUGUST 2012
14
U
S stocks were barely changed
in light volume yesterday as
investors waited for signs from
central banks about
stimulating the weak economy,
though Apples shares hit a record
high after a major court victory.
Apple rose two per cent to $676.56
after the iPad maker won a $1bn
judgment in a patent lawsuit against
Samsung Electronics. Samsung of
South Korea said it would contest the
verdict. Earlier, Apple hit an all-time
high of $680.87.
Investors are looking ahead to
Federal Reserve Chairman Ben
Bernankes speech to a meeting of
central bankers at Jackson Hole,
Wyoming, on Friday.
Bernanke is likely to keep markets
guessing about the timing of another
round of bond purchases, but he is
likely to sustain expectations for
action of some kind next month.
Stocks have rallied in recent weeks
on growing expectations for a third
round of quantitative easing from the
Fed, as well as possible action from
the European Central Bank.
The Dow Jones industrial average
was down 4.88 points, or 0.04 per
cent, at 13,153.09. The Standard &
Poors 500 Index was up 2.45 points,
or 0.17 per cent, at 1,413.58. The
Nasdaq Composite Index was up 8.45
points, or 0.28 per cent, at 3,078.24.
DASHBOARD CITY
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
British Retail Consortium
The BRC has appointed Ian
Cheshire as chairman, taking
over the two-year post from
Rob Templeman on 1 October.
Cheshire has been chief
executive of Kingfisher since
January 2008 and an executive
director since June 2000. He
has also been a non-executive director of Whitbread
since February 2011. He serves as a lead non-
executive member at the Department for Work and
Pensions. He is a member of the Corporate Leaders
Group on Climate Change and a member of the
Employers Forum on Disability Presidents Group.
To provide continuity, Templeman will stay on for a
year as deputy chairman while Helen Dickinson,
who has more than 20 years of experience at KPMG,
will take up the role of director general in
December.
Standard Chartered Bank
The bank has appointed Alex Manson as group head
in its wholesale banking geographies of Asia, Africa
and the Middle East. Manson, who will be based in
London, joins from Deutsche Bank.
Marsh
The insurance broker and risk adviser unit of Marsh &
McLennan has hired John Kunzler as head of its UK
regulated professions practice for England and
Wales. He joins from Travelers Companies.
Vericrest Financial
The Texas-based financial services company has hired
David Slear as senior vice president of default
services. Prior to joining Vericrest he spent nearly ten
years in the default operations of mortgage and
consumer lending at HSBC.
InterMune
InterMune, a San Francisco-based biopharmaceutical
company, has hired Jon S Becker as vice president,
deputy general counsel and head of European legal
affairs, based at the companys European HQ in
Basel, Switzerland. Becker worked for 15 years at
Amgen, also based in Switzerland.
The Crown Estate
The Crown Estate has appointed two new portfolio
managers, Robin Clarke and Malcolm Burns, for its
Rural and Coastal Portfolio.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053 morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
CITY MOVES
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BESTof theBROKERS
TULLOW OIL
Morgan Stanley reiterates its
overweight rating on Tullow
Oil. It believes the shares are
undervalued given Tullow has
opened three new oil regions in
the past year. Development
concerns are overdone, it says.
RESTAURANT GROUP
Panmure Gordon increases its
target price to 375p from 327p
and reiterates its buy rating
ahead of Fridays first-half
results. Expects strong growth
in sales and earnings to lead to
a 15 per cent dividend hike.
WPP
Investec reiterates its buy
rating on WPP ahead of
Thursdays results. Investec is
hoping the first-half figures
will prove a catalyst for the
shares, enabling it to boost its
860p target price.
Restaurant Group PLC
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WPP PLC
20Aug 21Aug 22Aug 23Aug 24Aug
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850
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NEW YORKREPORT
M
ARKET watchers will be
looking to tomorrows
Nationwide house prices
report and mortgage
approvals on Thursday to gauge
whether the UKs economy is pulling
out of its double dip.
Recent data put the number of
mortgage approvals at a 15-year low
and last month house prices had fall-
en by 0.7 per cent and 2.6 per cent
year on year.
Today sees corporate reports from
Cairn Energy and G4S, while tomor-
rows updates come from 888
Holdings, Antofagasta and Serco
Group. On Thursday Admiral, WPP,
Regus, Unite Group and Cape will
update the market while Restaurant
Group will report on Friday.
R
e
g
i
s
t
e
r
e
d

c
h
a
r
i
t
y

S
C
0
2
4
4
1
4
Join us for the London Night
Hike Friday 21 September 2012
Enjoy exclusive access to the citys top
architectural spaces, as well as food,
drink, live music and more.
maggiescentres.org/nighthike
in partnership with
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City
Open House
London
2012
Apple on a high after court win
E
VEN though Im an Everton
fan, Im enjoying the start of
the new Premier league
season. Part of the optimism
is the latest round of
television money that offers a
lifeline to clubs that are financially
perilous.
This season, the Premier League
made 3bn selling the rights to
screen matches, a surprise 71 per
cent increase on last year. Each club
will receive an extra 14m to play
with, and more than two thirds of
that came from Sky. This windfall
illustrates several important
economic concepts.
Firstly, you may hear journalists
refer to transfer inflation, as clubs
spend some of the money on new
Spread betting, CFDs and
Trade today at www.cityindex.co.uk
FACT OF
THE DAY
Of the last 10 UK bank holidays, the FTSE 100 has rallied the
next trading day on 7 occasions, netting average gains of 1.6%.
cityam.com/forum
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.
16
TUESDAY 28 AUGUST 2012
players. However, as the economist
Milton Friedman said: Inflation is
always and everywhere a monetary
phenomenon. Economists typically
use the term inflation to refer
either to an increase in the money
supply, or its consequence, an
increase in the general price level.
Increasing prices in one particular
sector, such as football transfers, is
not inflation. In the same way,
people often get confused about
rising energy prices. What they are
typically observing is the
consequence of inflation, not the
cause. Unless BSkyB gets control of
the printing press, the company
cannot generate inflation.
Another concept is Cantillon
effects, named after the classical
economist Richard Cantillon who
was an early pioneer of monetary
theory. He noted that increases in
the supply of money has localised
effects, with prices moving in a
sequential order based on their
distance from the initial injection.
In a modern economy, new money
tends to enter the financial system
through the banking sector, hence
market participants clamber to get
closer to the source. You want your
income to rise before the prices of
the goods that you buy. Skys
television money will increase
prices beyond the football club, but
it will initially be concentrated in
the football sector.
Finally, we can think about the
speed at which these changes occur.
Tottenham Hotspurs former
chairman, Alan Sugar, famously
compared the business model of
football with drinking prune juice:
all the money you put in
immediately gets passed on to
players and agents. In 2009/10, only
three Premier League clubs had
wage to turnover ratios of less than
50 per cent (Arsenal, Manchester
United and Wolverhampton
Wanderers), while eight clubs had
ratios over 80 per cent). So we might
expect players to capture the
majority of this 3bn. But if
everyone expects transfer fees and
wages to go up, managers will
increase the bidding now.
The bottom line is that the people
who immediately benefit are those
with the scarce talent. And thats
the players. But the fans of the
Premier League will also benefit
from seeing some of the best players
in the world play in England. It is,
after all, a global market.
Anthony J. Evans is associate professor
of economics at ESCP Europe Business
School. www.anthonyjevans.com
@anthonyjevans
FRONTLINE
ECONOMICS
ANTHONY J. EVANS
Its open season for footballs economic analogies and the skys the limit
T
HE Treasurys latest
consultation Ensuring the
Fair Taxation of UK
Residential Property
Transactions has just closed.
We responded to it, and disagreed
not only with the substance of the
policies, but also the way in which
the consultation was framed around
the vaguest of concepts: fairness.
The main proposal is for a graduat-
ed Annual Charge to be levied on UK
residential property valued at 2m
plus, which is owned by any non-nat-
ural person. Also, capital gains tax
(CGT) is to be extended to catch dis-
posals of such property by a non-resi-
dent.
Aside from the disappointing
absence of any detail on the extension
to CGT, the most curious thing about
the consultation was the prevalence
of the word fair, which cropped up
on 16 separate occasions. The word
fairness has a tenuous link to tax,
yet it has become the mot du jour
ever since the chancellors incanta-
tion on morality at the last budget.
Of course, tax legislation and case
It wont take long for
government to extend
the Annual Charge to
cast a wider net

Taxation shouldnt be determined

by subjective opinions of fairness
law are littered with examples of
unfairness ranging from the double
and triple taxation of the same eco-
nomic income, to the taxation of indi-
viduals on income they dont receive.
Recently, the tribunal in Rogge and
others versus HMRC found that a tax-
payer should be taxed on income he
effectively paid to himself. The tribu-
nal called it an absurd conclusion,
but stated that it was bound by the
wording of the statute.
If taxation is to be driven by a con-
ception of fairness, it is hard to see
how it could be deemed fair for any-
one caught by the Annual Charge. It
would be retroactive and is designed
to catch transactions that may have
taken place decades ago. Also, as a
wealth tax directed at property val-
ues, rather than net wealth, it would
disproportionately impact upon
those living in expensive areas, as
well as those who have chosen to
invest their wealth in property.
But irrespective of the inconsisten-
cies in the consultation, in truth, tax-
ation has little to do with fairness.
Income tax was originally introduced
as a short-term measure to fund the
national debt arising from the
Napoleonic Wars. That was 200 years
ago. The tax system was not created
in any formalised or coherent man-
ner based on an objective notion of
fairness. We have an arbitrary hodge-
podge of rules, designed to extract
funds from the population to cover
spending and win votes.
There is no inherent fairness and no
inherent morality in the system. It
wasnt built with that in mind. How
can fairness be said to be a central
tenet of a system that taxes income at
50 per cent, but capital gains at 28 per
cent?
It has not gone unnoticed that the
Annual Charge looks suspiciously like
a Mansion Tax lite. The threshold of
2m is the same as that championed
by the Lib Dems in their proposed
Mansion Tax. It targets albeit indi-
rectly broadly the same base of tax-
payers: wealthy foreigners.
But it wont take long for a govern-
ment to extend the terms of the
Annual Charge to cast a wider net.
The history of taxation shows that
once a tax is introduced, it is only a
matter of time before it is extended to
include a greater portion of the popu-
lation.
But in the short term we should be
concerned about how this Mansion
Tax lite is perceived by the wealthy
foreigners it is targeting. Whether we
like it or not, the UK needs these peo-
ple to help drive our economic recov-
ery. We need to attract wealthy
foreigners to the UK, and we need to
retain those who are already here.
The government is happy and
rightly so to make the UKs corpora-
tion tax regime more competitive to
attract multinationals. The benefits
of attracting wealthy individuals into
the UK through the collection of
indirect taxation are similar to the
benefits of attracting multinationals.
Yet we are openly pursuing tax poli-
cies that deter wealthy individuals
from moving to the UK because of the
complexity of the rules, the frequen-
cy of changes and the uncertainty of
tax treatment because of retrospec-
tive taxation.
By allowing a woolly notion of fair-
ness to creep into taxation, the politi-
cal landscape is such that it has
become almost impossible for politi-
cians with vision to tax us in the
nations best interest.
Mark Davies is director of Mark Davies
and Associates.
MARK DAVIES
FX trading can result in losses greater than your initial deposit.
POINT SPREAD
*
TRADE FTSE
*1 point spreads available during market hours on daily funded trades and daily future spread bets and CFDs (excluding futures).
17
Unprepared youth
[Re: Rigour in GCSEs is essential but we need
students fit for business, Thursday]
Our nations future depends upon our
willingness to create new educational
partnerships, raising academic expectations
of all children and providing them with
skills. Our research on skills and future jobs
shows that between 2007 and 2010 an
average of almost 50 per cent of pupils in
cities left the education system without A*
to C grades in GCSE Maths and English. This
not only has implications for young peoples
futures, but also directly impacts on the UK
economy because businesses do not have
access to the pool of skills they need.
GavinAspden, director of qualifications, ICAEW
Building growth
[Re: New infrastructure cannot dig us from
our economic hole, Friday]
Eamonn Butler finally raises the elephant in
the room: when there is talk of huge infra-
structure investment, someone has to pay.
Constant, above-inflation increases in water,
energy, transport costs and subsidies for
green energy mean that the burden will fall
on the user and the taxpayer. And guess
what: it is, pretty much, the same person.
Mike Bryan
Infrastructure spending might not work, but
I have not heard many other concrete ideas
for getting the economy back on track.
David Crooks
T
HE coalitions plans for the
public finances seem
doomed to fail. Both parties
came into office pledging to
eliminate the current
structural deficit in five years, and
for the debt-to-GDP ratio to be falling
by the end of the Parliament. In
effect, this meant faster deficit
reduction than the Labour party had
outlined under Gordon Brown.
However, now the budget deficit is
falling almost as slowly as Labour
planned. Current spending contin-
ues to increase in real terms, and the
25 per cent deficit closure that
occurred by the end of 2011/12 was
driven by cuts to investment and eco-
nomically damaging tax hikes. The
current structural deficit, which the
coalition pledged to eliminate, has
only been reduced by 13 per cent.
Slower than expected growth means
public sector net debt is now official-
ly forecast to be 1,365bn by the end
of the Parliament, 81bn higher than
originally planned. And recent bor-
rowing figures suggest it will be
much higher still.
For these reasons, the public
finances take centre stage in political
debate. But how tuned in are the
public to what the coalition actually
set out to achieve, and how success-
ful the coalition has been so far?
Some polling weve done suggests:
not very. In fact, worryingly, it sug-
gests many in the public dont know
the difference between debt and
deficit which could easily be
exploited in future election cam-
paigns. Just 10 per cent of those sur-
veyed realise that, on official
forecasts, the coalition government
is planning to increase the national
debt by around 600bn between
2010 and 2015. In fact, 47 per cent of
the public incorrectly thought it
intended to reduce the national debt
by the same amount, while 32 per
cent simply didnt know.
TOP TWEETS
Osborne announces that he does now have a
plan B. Its actually the old plan A but marked
down by Gove
@davidschneider
The economy is still in longest double-dip
recession since World War Two. We need a
change of course and a plan for jobs and
growth.
@RachelReevesMP
As Marvin Gaye said: What's going on?
According to GDP data: output is down, gov-
ernment spending and wages are exploding.
Is the ONS in a parallel universe?
@asentance
Are new landmark skyscrapers destroying
the City of Londons traditional character?
YES
The City of London has lost the intimacy of its streets and lanes.
Planners have traded it away for the blank facades of huge
monoliths crashing into the pavement, apparently mitigated by
wind-blown plazas. Towers and offices with large floor plates are
seen as an essential for the City as a global trading centre. But it
is not these, but the architecture of the modern monolith, that
has made the street a hostile place. As architects concentrate on
designing huge facades, they falsely believe that it is essential to
carry their structural expression to the street. The City could
learn from the pioneering tall buildings of New York and
Chicago, where the street was given its own intimate building,
and the towers are plain, with landmark silhouettes. Planners
and architects need to learn from history and restore the human
scale to the streets.
Professor Robert Adam is director of ADAM Architecture.
Robert Adam
NO
Earle Arney
The Olympic Games has created an opportunity for the City of
London to regain its confidence as a relevant global city. Despite
early pessimism, the City can revel in its accomplishments and,
as we look towards the legacy of the Games, it can now become
a truly sustainable commercial centre. To achieve this, the
classical building typology must be refreshed. We need new tall
buildings, particularly to the east of the City. By building higher,
we can provide offices that are fit for purpose and with
increased natural light, therefore producing lower carbon
emissions. More importantly, tall buildings can provide larger
public spaces at ground floor level to delight workers and
contribute socially. By growing up, we can move beyond style
and ensure that we all have a happier and healthier City to live
and work in.
Earle Arney is director of workplace at Woods Bagot.
RAPIDresponses
Of course, it was never the coali-
tions ambition to reduce the debt
this Parliament in money terms, or
as a proportion of GDP. We keep
adding to the debt all the while we
run a deficit, which looks like it will
be well into the next Parliament. It
doesnt help that many politicians
and commentators regularly confuse
the debt and deficit. As such, it
makes sense for coalition ministers
to simplify matters by saying we are
paying off the nations credit card.
The public also seem unclear about
what the government has actually
achieved. The coalition correctly
states that the deficit has fallen since
2010, even if more slowly than
expected. But just 39 per cent agreed
with the statement: The govern-
ment has reduced its budget deficit
since 2010, compared to 28 per cent
who disagreed and 33 per cent who
didnt know.
Ignorance of the public finances
makes changing course more diffi-
cult, but unless we see a surprise
uplift in the economy in the next few
months, there seems little economic
or political payoff to stick to status
quo policies.
I think actual spending cuts, along-
side tax cuts and significant supply-
side reforms are the best hope for the
economy. If the chancellor agrees,
then its clear winning the argument
will require more clarity about the
true state of the public finances, and
the aims of changing tack.
Ryan Bourne is head of economic
research at the Centre for Policy Studies.
TUESDAY 28 AUGUST 2012
RYAN BOURNE
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Misinformed public
remain confused by
the debt and deficit
T
HIS weekends economic
symposium at Jackson
Hole has the power to
monumentally shake
world markets, which is what
voracious traders subdued by
the summers low trading
volumes will want to see.
With both Ben Bernanke,
chairman of the Federal
Reserve, and Mario Draghi,
president of the European
Central Bank (ECB), due to speak
at this years event, there
should be ample opportunity
for traders to catch pips on the
back of their comments.
The eagerly anticipated annual
event has become a significant
fixture in the economic calen-
dar, even more so in the crisis
era. The remarks will give key
insights on the future direction
of US monetary policy, which
will inevitably have global rami-
fications.
At the 2010 event, against the
background of a fragile economy
and chronically high unemploy-
ment, Bernanke outlined policy
responses that firmly pointed to
further quantitative easing. The
markets were buoyed by the
additional monetary accommo-
dation at the Feds disposal.
The 2011 event was more
oblique: details about the specif-
ic tools available to the Fed were
light, initially leaving stimulus-
hungry markets disappointed.
However, markets breathed a
sigh of relief after digesting the
full implications of Bernankes
speech and were recompensed
with Operation Twist a few
weeks later.
The outgoing ECB president,
All eyes will be fixed on Mario Draghi and Ben Bernanke for the Jackson Hole economic symposium at the end of this week
TUESDAY 28 AUGUST 2012
18
cityam.com
TRADING MANAGEMENT WEALTH
DAVID MORRISON
fx360.com
THE GLISTENING APPEAL OF
PRECIOUS METALS RETURNS
twitter.com/fx360 facebook.com/fx360
SENIOR MARKET STRATEGIST, GFT
The contents of this column are provided for general information purposes only. One should consider the appropriateness
of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612
Jean-Claude Trichet, also
appeared at last years event, but
it was no swan song. Markets
were becoming nervous about
the escalating crisis bubbling
away in Greece and Trichet had
nothing game-changing to offer
them.
One could be forgiven for
thinking that this year will feel
like dj vu: parallels can easily
be drawn.
TO EASE, OR NOT TO EASE
That is the question. Whether or
not Bernanke will pull the trig-
ger on a third round of quantita-
tive easing, QE3, is a coin-flip.
The Feds recent meeting min-
utes struck a dovish tone:
Additional monetary accommo-
dation would likely be warrant-
ed fairly soon unless incoming
information pointed to a sub-
stantial and sustainable
strengthening in the pace of the
economic recovery.
The prospect of further mone-
tary easing was quickly priced
into global markets, but have
they been too quick off the
mark? David Morrison, market
strategist at GFT Markets
believes so: Recent data,
released after the Feds meeting,
has surprised to the upside.
There is an awful lot of compla-
cency in the market and there is
room for disappointment gold
and silver look particularly
overextended.
With the better than expected
employment data, consumer
confidence reaching highs not
seen since 2008, stronger retail
figures and equity market ral-
lies, the US economy looks in a
less perilous state than it was
going into last years Jackson
Hole. However, does this amount
to a substantial and sustainable
strengthening of the US econo-
my?
The stimulus-hungry think not:
although employment has
improved, it still remains stub-
bornly above 8 per cent and has,
in fact, slightly increased since
Aprils reading. Housing data,
although favourable, is still
weak.
Europe still remains a big risk
to global stability. Shavaz Dhalla,
financial trader at Spreadex,
expects some clarification from
Draghi [as to the ECBs approach]
and probably an announcement
of the capping of sovereign bond
There is a chance that the doves may get
their wings clipped at Jackson Hole, but
we should still see the return of market
turbulence, writes Yogesh Chandarana
Gold
$

p
e
r

o
u
n
c
e
25Jun 02Jul 09Jul 16Jul 23Jul 30Jul 06Aug 13Aug 20Aug 23Aug
1,680
1,660
1,640
1,620
1,600
1,580
1,560
1,540
1,520

NY Close London AM London PM
Central Bank elixir
U
P UNTIL last week, gold and silver
like a Parisian in August appeared
to have shut up shop for the
summer. In contrast, equity markets
had pushed higher in a low volume melt-
up that brought the Dow and S&P 500 up
to levels last seen in December 2007. Even
more impressively, the Nasdaq 100 hit its
highest point since 2001, largely thanks to
Apple. Meanwhile, crude oil reversed the
majority of its May-June pullback, as a
geopolitical risk premium was re-
established.
But last week, silver, then gold, broke out
sharply to the upside in moves which took
most traders by surprise. Silver flew above
$28.30/oz a level which had acted as
resistance from the beginning of June.
A day later, gold joined in on the action.
It surged through $1,625/oz the 61.8 per
cent Fibonacci retracement of the
December to February rally and went on
to take out its 200-day moving average at
$1,645.
No doubt the two metals are getting a
boost as investors continue to factor in the
likelihood of further central bank stimulus.
After all, both gold and silver notably
failed to follow equities and oil higher over
the summer and could now be playing
catch-up. But this latest move feels more
like a technical breakout, backed by
genuine buying for other fundamental
reasons.
Two weeks ago, the World Gold Council
reported that overall gold consumption fell
7 per cent in the three months to June,
with second quarter gold demand falling to
its lowest level in more than two years.
Retail buying in India fell sharply thanks to
the weakness of the Indian rupee, together
with increased import duties. Chinese retail
demand also fell, as the economy slowed
and the Shanghai Composite fell back to
levels last seen at the height of the
financial crisis. However, with reports of
Indian demand picking up ahead of the
marriage season and Diwali, it may be too
early to write off the worlds two largest
gold consumers.
Meanwhile, as foreign exchange and
portfolio diversification continues, central
banks, financial institutions and high net-
worth individuals continue to accumulate
gold. News that George Soros and John
Paulson had significantly increased their
gold holdings in their respective hedge
funds in the last quarter also piqued
investors interest. It is also worth noting
that LCH-Clearnet, the clearing house,
joined CME Europe in allowing the use of
gold as collateral for margin cover
purposes. The obvious conclusion is that
financial institutions are happy to consider
gold as money, even if many of the worlds
leading economists (and Ben Bernanke)
continue to insist that it is nothing of the
sort.
The question now is: can the upside
momentum be maintained? With the price
consolidation that took place over the
summer, gold and silver have built solid
bases from which to head higher. The risk
for both metals is that the current rally is
based solely on the expectation of further
central bank stimulus from the Federal
Reserve, European Central Bank (ECB) and
Peoples Bank of China. If this is the case
and such stimulus ultimately fails to
materialise, or if a public argument builds
over bond purchases between the ECB and
the Bundesbank, then gold and silver could
pull back sharply.
The Fed could easily disappoint by
holding off from further large scale asset
purchases until after the US presidential
election in November. But the appetite for
further stimulus is strong due to high levels
of unemployment, tepid growth and the
need to keep bond yields firmly anchored.
In addition, the Eurozone debt crisis looks
set to escalate further.
Geopolitical risk is also increasing: the
hostilities in Syria, together with rising
tensions between Iran, Israel and the US,
could easily converge and then set off a
chain of events which have the potential to
spread worldwide. Given this uncertainty, it
is no wonder that precious metals are once
again being sought out as safe havens.
Source: Kitco
19
yields.
Concrete news from Super
Mario would elate European stocks
at the beginning of the following
week. Brenda Kelly, senior market
strategist at CMC Markets believes
any QE will be bullish for
European indices particularly the
banking sector as well as euro-dol-
lar. Any disappointing news will
result in a sharp equity market cor-
rection.
However, traders will need to care-
fully time their trade entry and
exit. Draghi is speaking outside of
market hours, adding another level
of risk. Morrison cautions:
Investors need to be very wary of
keeping open positions over the
weekend.
Over the course of the last year,
traders will have learned to take
comments from Eurozone policy-
makers with the utmost caution,
since they have hardly been a
paragon of reliability. Their dance
has been foreseeably macabre: a
solution is put forward and mar-
kets rally; shortly afterwards, it
becomes clear that the solution
doesnt actually address the
Eurozones long-term stability, or,
will never be implemented (usually
because Angela Merkel says nein);
markets recoil and the crisis brings
Europe a step closer to disaster;
repeat ad nauseam.
Whatever the outcome, Jackson
Hole is set to slam the door shut on
the summers lull in trading vol-
umes. Kelly says that trends will
start to have more significance
because the direction of the moves
will have much more conviction.
Morrison agrees: It looks like it
will be a busy September, with the
European finance ministers and
ECB due to meet after Jackson Hole;
the Bank of England and the Fed
will meet again; and the Bundestag
will rule on the European Stability
Mechanism. Dont forget the presi-
dential elections and the looming
fiscal cliff in the US.
Lock and load, dear traders: hunt-
ing season is about to begin.
The Vix index
Jun Apr Mar Feb May Jul Aug
26
24
22
20
18
16
14
15.85
TUESDAY 28 AUGUST 2012

PIP HUNTING:
Some trading ideas from the
experts:
nDavid Morrison, market strategist,
GFT Markets
With trading volumes set to pick up:
The Vix index looks good. Volatility is
under-priced.
n Brenda Kelly, senior market
strategist, CMC Markets
Stay hedged: Any uncertainty from
Mario Draghi will lead to a pop in
German bunds.
n Shavaz Dhalla, financial trader,
Spreadex
The self-described contrarian says:
Im looking to short banks and
miners, and take a long position in
gold. September is going to be all
about volatility.
My pick: Short Aussie-dollar
Expertise: Fundamental and technical analysis
Average time frame of trades: A few hours to a few days
Despite the rally that came after minutes of the Federal
Reserves latest meeting were released, the Aussie-dollar has
broken down to fresh lows for the month of August. Given
this intra-month reversal, it is likely that we will see further
losses going into the last week of the month. The downtrend
that began in the early part of August still remains intact. A
daily close below $1.0400 suggests further losses towards
the $1.0310 mark.
ANALYST PICKS
STRATEGIST
ILYA SPIVAK
My pick: Stay short Aussie-Canadian dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I sold Aussie-Canadian dollar at Ca$1.0441 to gain exposure
to expectations of slower Chinese growth against accelerated
US economic expansion. The trade was triggered as prices
broke support at the bottom of a rising wedge chart pattern,
after completing a bearish evening star candlestick. The
initial target is Ca$1.0281. Prices are making downside
progress and I will continue to hold the trade. A stop-loss will
be activated on a daily close above Ca$1.0598.
CHIEF STRATEGIST
JOHN KICKLIGHTER
My pick: Short Aussie-dollar and dollar-yen, buy euro-Swissie
Expertise: Fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
Volatility increased last week and some clean ranges (like
sterling-dollar) came under stress. There is still a lull before
heavy event risk in the first half of September (Fed, ECB, EU
summit), so volatility is warping technical levels, and trends
are struggling to solidify. For a risk-detached range, I like the
dollar-yen wedge (long bias). For a break, I like an Aussie-
dollar channel break at $1.0400. And, for intervention, I like
euro-Swiss franc long from SFr1.2060.
CURRENCY STRATEGIST
CHRIS VECCHIO
10-year German bund yield
Oct Sep Nov Dec 2012 Feb Mar Apr May Jun Jul Aug
2.5 %
1.5
1
0.5
1.33
2
isnt certainbut expect volatility
PERUVIAN FOOD has soared in
popularity in recent years, which
would explain why Lima was
packed out, even on a Monday
night.
There are countless restaurants
in London that offer bland menus;
Lima is an exception and the
buzzing atmosphere and friendly
Peruvian staff have already made it
a favourite of Fitzrovias
discerning diners.
Most of the time you cant
understand a word of what youre
ordering, but this is all part of the
fun.
Head chef Virgilio Martinez is a
maverick. Having been the
executive chef for the restaurant
Astrid y Gaston, named as one of
the worlds 50 best restaurants,
and having worked in notable
kitchens in New York, Singapore
and Spain, he is one experienced
cook. His diverse background is
20
POP-UPS. Theyve become a thing,
havent they? If its not located in the
loft of an abandoned Victorian
insane asylum, it isnt worth a dime.
You cant move for the bloody things,
whether its the glut of temporary
members clubs that cropped up to
take advantage of the elusive tidal
wave of Olympic tourists, or the likes
of eBay and Microsoft opening sea-
sonal stores to entice Christmas
shoppers.
The Seagrass, on Chapel Market in
Islington, pops up three nights a
week inside a building that, during
the day, happens to be a pie and
mash caf called M Manze. Of course,
some people might quibble that a
food venue, located in a cafe, isnt so
Pop-ups are everywhere
but The Seagrass shines
much a pop-up as, you know, a
restaurant.
The venue is quietly stunning, all
original Victorian fittings and fading,
glazed tiles. Add some dim candle-light
to the equation and youre probably not
far from how the place looked 100 years
ago.
You can tell its informal dining
when the waiter offers to shake your
hand before he introduces the
starters. The casual atmosphere goes
some way to mitigating for the fail-
ings of Manze as an evening venue.
The toilet, for instance, is unhelpfully
situated on the far side of the
kitchen. Now, restaurant kitchens
arent the most pleasant of places at
the best of times, and having to make
eye-contact with the chef who is
about to cook your dinner as you
make your way to the loo is hardly
ideal, although it does act as a apt
demonstration of the cyclical nature
of the dining experience.
The church-style pews that serve as
seats arent really suited to a leisurely
meal, either, and I found myself
squirming into increasingly uncom-
fortable positions in a bid to prevent
the circulation in my buttocks from
being cut off.
LIFE&STYLE
TUESDAY 28 AUGUST 2012
cityam.com
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Beat the back to work blues with a revamped daily routine
NOT KNOWN as the ugly cousin of
hangovers for nothing, post-
holiday blues can be at their worst
this time of year. They are helped
along by the knowledge that the
last Bank Holiday until mid-winter
has passed, a new school term is
around the corner and there are no
more Olympics for at least another
fifty years. But when alls said,
wallowed and done, what to do?
Here are my top tips for staying
chipper for the remainder of
August.
STOP THE HOLIDAY INDULGENCE
You may think youre being good to
yourself by skiving the gym this week
or succumbing to one last lardy lunch
but youll feel actually feel a whole lot
brighter if you pack away the crate of
Stella and hit the tarmac instead.
FIND A NEW SANDWICH BAR
No point longing for your two-week
summer holiday for the remaining 50
weeks of the year recreate some
holiday habits into your daily routine.
Become a tourist on your own
doorstep and start by getting out of
your lunchbreak rut. Kill two birds
with one stone and find a new
sandwich/salad bar thats off the
beaten track. Find somewhere that
serves up salads-with-a-twist (think
goats cheese with honey and walnuts)
and make sure its at least a brisk, 10
minute endorphin-inducing walk
from your desk.
UNPACK IMMEDIATELY
Researchers from Manchester
Metropolitan University assessed
workers back-to-work blues via a
mathematical formula. Factors for
reduced back-to-work stress included
relaxing thoroughly while on holiday,
returning to a job you enjoy and not
leaving your suitcase half unpacked
as a visible reminder of whats been
and gone. They suggest at least one
days breathing space in between
your plane landing and heading into
work.
www.laurawilliamsonline.co.uk
@laurafitness
FIT IN
THE CITY
LAURA WILLIAMS
FITNESS & DIET EXPERT
The food had to be pretty good to jus-
tify the extra inconvenience. And it
was. I started with mussels, which,
while hard to get wrong, certainly did-
nt disappoint.
For the main, in a momentary lapse
of reason, I opted for the crab, served
with a hearty portion of chips and
salad. It may be a fine crustacean but
its hard to look graceful as you attempt
to smash your way through its shell. My
guest kindly looked the other way as a
glob of boiling hot crab meat sprayed
onto my hand. When I finally got it into
my mouth, though, it was divine. The
tender cut of venison on the plate oppo-
site was even better.
The Seagrass does the important
things right. The service is good, the
food is very good and, when you
account for the bring-your-own-bottle
policy, it ends up being quite reason-
able, too. Over and above that, you feel
like youve worked for your dinner; like
the trips through the kitchen and the
familiarity of the waiting staff some-
how make you more than just another
punter. You wouldnt want to go there
every night, which is just as well,
because you cant: its a pop-up.
Whatever that means.
RESTAURANT
THE SEAGRASS
74 Chapel Market, Islington, N1 9ER
Tel: 020 7837 5270
FOOD hhhhi
SERVICE hhhii
ATMOSPHERE hhhii
Cost per person without wine: 30
The Seagrass is located in a quietly stunning Victorian cafe
apparent in the variety of his
ingredients and combination of
styles, which amalgamate to create
a truly unique menu.
The starters, with one exception,
are all raw. While not to everyones
taste, this really allows the flavours
of the dishes to shine. Beautifully
rich tones are mixed with
refreshing ingredients, as
Algarrobo tree honey, Ghoa cress,
shaved foie gras and shreddings of
duck find harmony together.
The pick of the bunch, and one I
would quite happily gorge daily, is
the truly scrumptious confit of
suckling pig, accompanied with
roasted Amazonian cashew nuts,
lentils and pear, accented with
flavoursome crispy pork skin.
The food is as beautiful as it is
delicious, with Martinez carefully
considering every detail.
Conceived by London design
firm March & White, the interior
is elegant yet warm and the large
abstract paintings adorning the
walls give it a vibrant authenticity.
Lima finds the perfect
combination between modern
cuisine and traditional Peruvian
ingredients and the imagination
and creativity that Martinez brings
is sure to keep people coming
back. For those wishing to
experience something different
Lima will not disappoint.
RESTAURANT
LIMA
31 Rathbone Place, Fitzrovia, W1T 1JH
Tel: 020 8600 3600
FOOD hhhhi
SERVICE hhhii
ATMOSPHERE hhhhi
Cost per person without wine: 45
For a taste of Peru
in Fitzrovia try Lima
Limas inventive menu is as beautiful as it is delicious
Steve Dinneen
Albany Bell
21
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Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6
7
8
9 10
11 12 13 14 15 16
17 18
19
20
21
22
5 20
14 14
3 34
29 13
21 10
42
4 39
30 11
16 13
27 9
15 16
6
10
16
45
12
30
17
39
9
23
7
37
7
10
28
45 24
12
8
ACROSS
3 Feeling uneasy and
self-conscious (7)
6 Consecrate (5)
7 Blood-red (7)
8 Expel from a country (5)
9 Large, edible
marine sh (4)
11 Align oneself with (4)
14 Prescribed selection
of foods (4)
17 As well (4)
19 Cows milk-gland (5)
20 Abstaining from
food (7)
21 Throw with great
efort (5)
22 Looked after a small
child in the absence
of a parent (7)
DOWN
1 Mother
superior (6)
2 In arrears (6)
3 Valuable
quality (5)
4 Counterpane (6)
5 Come out (6)
10 Raises (3)
12 Island in the
Ionian Sea, the
legendary home
of Odysseus (6)
13 Hearty and
lusty, crude (6)
15 Native of Mumbai,
for example (6)
16 Country, capital
Ankara (6)
18 Had better (5)
A
S
N
R
M I
U
E
T




4


4
F A E R O S P A C E
A M A T S
R A B B I A B Y S M
M E S O L E A
S E R G E L A T I N
T A L F
E X I S T V I S O R
A D I K E T I
D E L F T R O U N D
E H D N A
B A R T E R I N G Y
9 8 7 9 7 5 1
2 5 1 4 6 3 9 6
4 9 2 5 7 1 8 3
3 1 4 3 1 2
2 8 3 8 5 9 6 1
1 3 5 2 9 7 8 5
3 6 8 9 5 7 7 4
4 7 9 6 8 9
5 6 8 2 3 7 4 9
4 9 5 1 4 8 2 6
1 2 9 3 6 1 2
4
4
4
4
4
4
4
4
4
The nine-letter word was
DECATHLON
T
E
R
R
E
S
T
R
I
A
L
S
A
T
E
L
L
I
T
E
&
C
A
B
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
TUESDAY 28 AUGUST 2012
ACCUSED
BBC1, 9PM
A teenager comes to suspect the
motives of his mothers palliative
care nurse, leading to a deterioration
in his mental health.
THE GREAT BRITISH BAKE OFF
BBC2, 8PM
The 10 remaining amateur cooks
tackle three tart-making challenges,
with judges assessing their creative
flair and technical abilities.
UEFA CHAMPIONS LEAGUE
ITV1, 11.35PM
Adrian Chiles presents highlights of
this evenings play-off second-leg
matches, as five teams booked their
progression to the group stages.
TVPICK
TOTTENHAM look poised to embark
on an eight-figure transfer spree
before the weekend after finally
agreeing to sell inspirational
midfielder Luka Modric to Real
Madrid for around 30m yesterday.
Croatia star Modric completed a
medical and signed a five-year
contract with the Spanish
champions, bringing to an end
weeks of speculation about his
future at White Hart Lane.
The 26-year-old, who cost Spurs
16.5m four years ago, has generated
a transfer fee profit of 13.5m,
plus around 3m more in possible
add-ons related to appearances
and success.
That cash looks certain to be spent
before Friday nights summer
deadline for moves, with Tottenham
manager Andre Villas-Boas eyeing
two midfielders, a striker and
a goalkeeper.
First to arrive could be Lyon
stopper Hugo Lloris, after Spurs
revived their interest in the France
No1 over the weekend. The north
Londoners had a 12.5m bid rejected
earlier this month. Lloris, 25, is
thought to want a move to a top
European club, with Tottenham
keen to bolster their goalkeeping
Spurs ready to
spend as 30m
Modric departs
BRITISH No1 Andy Murray admitted
he was unable to perform to his best
during the 6-2, 6-4, 6-1 US Open first
round victory over Alex Bogomolov Jr
but was regardless satisfied with the
result on a court he felt had slowed
in the year since the last Grand Slam
at Flushing Meadows.
The Scotsman was far below the
imperious, irresistible figure that
defeated Switzerlands Roger Federer
to Olympic gold at Wimbledon earli-
er this month and showed several
signs of frustration in stuttering to
his latest win, yet if his dismissal of
an injury scare as cramp is to be
believed, in securing a straight sets
victory his ability to challenge for
a first Grand Slam title remains
entirely intact.
I thought it was a six or
seven out of 10,
said Murray, who
faces Croatias
Ivan Dodig next. I
didnt serve particu-
larly well at the begin-
ning but I won in
straight sets against a
tough player, and thats what
I needed to do.
I managed to come
through, which is the most
important thing. Obviously I
would have liked to have
played a bit better but the
conditions were difficult; it
was very windy.
Murray masters
Bogomolov but
admits to being
below his best
[The court] was definitely slow-
er [than it was last year], thats for
sure. But it was more a case of
getting used to playing on that
court. When the conditions are
breezy it can be tough: from
one end you have to do a lot of
defending and running, and
from the other side you have to
dictate the points and play with
a bit of spin. I struggled a bit
with that, but I did well when I
needed to.
Maybe [Ill keep using drop shots
more]. I think also when youre play-
ing a bit further inside the court, you
get the chance to use it a little bit
more and its more effective as well.
Thats something Ill need to try and
do its tough to hit through guys all
the time not that many are comfort-
able at the net, so if you can use
it well its a good tactic and it
worked well.
After securing the first set by
winning four consecutive games,
Murray laboured against his Russian
opponent in the second before dis-
playing greater skill and variety
to more convincingly win the
third. A potential injury
scare and occasional dis-
plays of anger went further
then the undermining
heavy thunder and rainfall,
however, in suggesting all
may not be well in his world.
For compatriot Heather
Watson, the day was a signifi-
cant disappointing after a rel-
atively successful period was
ended by a first-round, 6-2,
6-3 defeat to Chinese ninth
seed Li Na.
Luka Modric joined Tottenham in 2008
TUESDAY 28 AUGUST 2012
22
SPORT
cityam.com/sport
BY FRANK DALLERES
BY DECLAN WARRINGTON
Heather Watson suffered
defeat in the first round
@cityam_sport
options and mindful of 41-year-old
Brad Friedels advancing years.
Villas-Boas is also monitoring
Shakhtar Donetsks Brazilian
attacking midfielder Willian, a
player the Portuguese showed
interest in while manager of Chelsea
last season.
The Blues failed with a 17m bid
for Willian during the January
transfer window and, despite the
premature departure of Villas-Boas,
reconsidered the player this summer
after Shakhtar dropped their price.
Spurs are also trailing France and
Rennes defensive midfielder Yann
MVila, a long-time target of their
arch-rivals Arsenal.
Tottenham are mulling whether to
raise their offer for MVila, 22, after a
12.5m bid was rejected. Gunners
boss Arsene Wenger failed with a late
raid on Rennes in August 2011 but
his interest is thought to have cooled.
Villas-Boas could yet sign another
striker, despite landing Emmanuel
Adebayor on a permanent deal from
Manchester City, with Internacional
and Brazils Leandro Damiao top of
their shortlist.
Andy Murray (above) will face Croatias Ivan Dodig in the second round of the US Open
ENGLAND batsman Eoin Morgan
hopes exiled colleague Kevin
Pietersen can earn a recall to the
international set-up, but insists the
one-day team have not missed his
explosive hitting.
Pietersen remains frozen out
after his career-threatening row
with Test captain Andrew Strauss
and the England hierarchy, as
England prepare for todays second
one-day match against South Africa
in Southampton.
Coach Andy Flower has warned
there will be no swift welcome back
to the fold for the outspoken South
Africa-born star, although Morgan
hopes the rapprochement is a
matter of when, not if.
Morgan: Swift Pietersen return
would be good for England
Kevin is a world-class cricketer
and any team around the world
would want him in their side, but
there are issues surrounding him
at the moment and it will take time
to resolve them, he said.
Personally I didnt find him
difficult but Ive not been around
the Test team a lot. Obviously the
quicker that happens the better.
Pietersens absence initially
following his retirement from one-
day internationals, a decision he
has since reversed only to be
omitted has not stopped England
topping the world ODI rankings.
Weve played fantastic cricket.
The guys who have replaced him
have done particularly well, added
Morgan, who played in Fridays
abandoned series opener in Cardiff.
BY FRANK DALLERES
A BRITISH world champion
paracycler has apologised after his
comments criticising Paralympians
from other sports caused
controversy on the eve of the Games.
Jon-Allan Butterworth, one of the
countrys top medal hopes at London
2012, accused some Team GB
Paralympians outside cycling of just
having a laugh.
Butterworth, the current C5 1km
time trial world champion, lost his
left arm in a rocket attack five years
ago while serving as a weapons
technician with the RAF in Iraq.
Butterworth said: I was ill-
informed and was not aware how
hard the selection process is in
athletics. The team ethos is
World champion paracyclist
apologises for paralympics row
important to me and I apologise if I
have upset any of my fellow athletes.
Im sure they will have a successful
Games as I hope the cyclists will. This
is my first Paralympics and I am
keen to do my talking on the track.
Butterworth had earlier sparked
the row by questioning Team GB
colleagues, and the level of funding
allocated to different sports, just
days before tomorrows opening
ceremony.
He said: If you take yourself
seriously as a professional athlete in
Paralympic sport you need to act like
a professional athlete. There are
some sports which just have a laugh.
Im definitely critical of it because I
work hard. Scrap all their funding,
give it to cyclists and well win
double the medals we do already.
BY JEORGE BIRD
23
IN BRIEF
Arm injury delays Barker return
nBOXING: Middleweight Darren
Barker has been ruled out of his fight,
scheduled for September 8 against
Italian Simone Rotolo, after suffering
an arm injury. I am gutted for Darren
as hes been looking great in training
and I know he was ready to get back
to what he does best, said promoter
Eddie Hearn. The only good news is
that it is a new injury rather than an
aggravation of an old one.
Togos Boukari heads to Wolves
nFOOTBALL: Wolves have signed
Togo winger Razak Boukari from
Rennes on a four-year contract. I
know it is not the Premier League but
that is not a problem because I just
want to play football, he said.
Ansbro suffers broken neck
nRUGBY UNION: London Irish and
Scotland centre Joe Ansbro broke his
neck against Munster on Friday
evening and is in hospital recovering.
Joe broke a small bone at the top
of his neck early in the games
second half," read a club statement.
Mowbray admits Emnes interest
nFOOTBALL: Middlesbrough
manager Tony Mowbray has admitted
Swansea are interested in signing
Dutchman Marvin Emnes but is
adamant he is in no rush to sell. He
said: There have been enquiries for
two years for Marvin from Swansea,
ever since he went out on loan. There
is no reason for us to rush into selling.
Lets see what the week brings.
E
UROPES Ryder Cup team has
now been finalised, and it has
to be said that Nicolas Colsaerts
and Ian Poulter were absolutely
the right wildcard picks in the end.
Padraig Harrington ended up 19th in
the points list and was ultimately too
far down in the table to go, even
though he has strong qualities. I
would have picked both of those two
as well.
Colsaerts showed huge credentials
when he won the World Match Play
Championship, beating Graeme
McDowell, and thats what the Ryder
Cup is all about. Captain Jose Maria
Olazabal has already mentioned
Colsaerts strength as a big hitter and
that can be a huge benefit, but hes
in there as a class player; he should
be extremely happy with his team,
because it couldnt be any stronger.
The Medinah, where the Ryder
Cup will be played, is a great course,
but itll be set up to suit the
Americans. Thats just something
you have to contend with when
youre playing away from home we
do it here and theyll do it there,
though thats not something Ive any
concerns about.
While Colsaerts is a Ryder Cup
rookie, hes ready, and youve got to
be blooded at some time. Hes not a
21-year-old hes 29 and hes an
experienced boy. Its been a meteoric
rise for him because four years ago
he wasnt in the top 1000 in the
world, and now hes in the Ryder
Cup team.
Im disappointed for Harrington
for missing out, of course, but Im
not disappointed for the team; at
19th he simply wasnt close enough.
Over the last three or four weeks, I
think the European team has been
strengthened enormously,
particularly with the recent wins for
Rory McIlroy, Sergio Garcia and Paul
Lawrie. I think this is as strong as
they can get.
If it was to be played on neutral
territory Id 100 per cent back the
Europeans, but home support and
home conditions are big advantages,
particularly as Chicago is boisterous,
so well see.
Olazabal would have been through
nearly everything in his head by
now; all hell be doing is looking at
his pairings. Everything else will
have been arranged, and now its
game on. I cant wait for three
weeks time for it to happen. As a
captain, it is a relief to finish
selecting the team the hardest
thing is telling the last man that
youre not picking him; I once had to
tell that to Olazabal himself. Once
thats done, its all go.
Sam Torrance OBE is a multiple Ryder
Cup-winning golfer, former captain of the
European team, and media commentator.
Follow him on Twitter @torrancesam
Englands Ian Poulter is one of two wildcard selections for Europes Ryder Cup team
We will get some goals I am sure from Diaby, Ramsay,
Walcott, Gervinho. We have to share it around a bit
Arsenal manager Arsene Wenger on his sides failure to so far score a Premier League goal
cityam.com
TUESDAY 28 AUGUST 2012
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COMMENT
SAM TORRANCE
EUROPEAN Ryder Cup captain Jose
Maria Olazabal has hailed Ian
Poulters matchplay prowess after
handing him a wildcard place in his
team for next months showdown
with the United States.
Olazabal yesterday named Poulter
and Belgian Nicolas Colsaerts as the
two discretionary picks in his 12-man
squad, meaning three-time Major
winner Padraig Harrington misses
out for the first time since 1997.
Englishman Poulter, who suffered
a bout of pneumonia earlier this
year, was the leading points scorer in
2008 and won three points out of
four when Europe regained the
trophy two years ago at Celtic Manor.
Every one of you guessed Ian was
going to be there for obvious
reasons, said Olazabal, who is
aiming to secure Europes fifth win
from the last six instalments of the
biennial contest.
He has a great Ryder Cup record,
he was playing well he had some
issues earlier in the season, he got ill
and he couldnt play as much but
he is cured and his attitude and
spirit in the Ryder Cup team has
always been great. He likes to be in
that situation, playing in the Ryder
Cup gets the best out of him.
Poulter and Colsaerts, who is set to
become the first Belgian to play in
the Ryder Cup, were the two men to
come closest to qualifying
automatically, having finished 11th
and 12th in the points ranking.
They join Rory McIlroy, Justin
Rose, Graeme McDowell, Paul Lawrie,
Francesco Molinari, Luke Donald, Lee
Westwood, Sergio Garcia, Peter
Hanson and Martin Kaymer in the
team to face David Love IIIs US team.
Colsaerts, 29, needed a top-two
finish to qualify automatically for
Olazabals team, but finished tied for
19th as Lawrie won his second
European Tour title of the year.
BY FRANK DALLERES
City landmarks set for key role in parade of London 2012 heroes
ROUTE details of a parade taking
place next month to celebrate
Britains Olympians and
Paralympians have been revealed,
with the City hosting the starting
point for the celebration.
Around 800 athletes, including
several medal winners, are set to
partake in the procession, which will
depart from Mansion House at
1.30pm on Monday 10 September.
The event will be known as the Our
Greatest Team Parade and will see
the athletes stationed on 21 floats.
They will initially travel along
Queen Victoria Street and Cannon
Street, passing St Pauls Cathedral,
before embarking down Fleet Street,
past Aldwych and into The Strand,
eventually reaching Trafalgar
Square. This section of the parade
will be open to the public, while a
big screen providing live
commentary will be stationed at the
base of Nelsons Column.
The parade will continue through
Admiralty Arch and into The Mall,
prior to travelling down to the
Queen Victoria Memorial. This part
of the route, however, will be
restricted to groups who made a
significant contribution to the
success of the Games, with tickets
provided for 14,000 volunteers,
members of the emergency services
and military, Olympic coaches and
staff, athletes families and school
pupils from every London borough.
Mayor Boris Johnson said: This is
a chance to celebrate the heroes and
heroines who have thrilled us with
their skills, sportsmanship, and
grace during Londons spectacular
Olympic and Paralympic Games, and
whose names and triumphs will live
on for centuries to come.
BY JEORGE BIRD
START: 1.30pm
Mansion House
St Pauls
Temple
Chancery
Lane
Barbican
Mansion
House
Bank
London
Bridge
Southwark
Holborn
Covent
Garden
Embankment
Waterloo
W
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Cannon Street
Southwark Street
FINISH:
Trafalgar Square
Matchplay pedigree earns
Poulter a wildcard spot in
Europe team for Medinah
Results
Olazabal is spot on with his wildcard picks