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News
4 CITYA.M. 6 FEBRUARY 2012
JUSTINE Greening is set to become the
first secretary of state for transport to
vote at a Network Rail AGM, as the gov-
ernment steps up its opposition to
large bonuses proposed for the groups
senior management.
Greening said yesterday that she
will exercise her right to vote against
the bonuses at this weeks meeting,
despite admitting that it wont prevent
the payments being made.
Labour MP Tom Harris last week
tabled an Early Day Motion (EDM) call-
ing for Network Rail directors to reject
the generous remuneration packages,
including a 340,000 bonus for chief
executive Sir David Higgins.
The motion, signed by 30 Labour
MPs, cited major asset failures, con-
gested routes and poor management
of track condition as reasons for
poor performance of the UK rail net-
work in 2011.
Yesterday Greening, MP for the
London constituency of Putney, told
the Sunday Politics show: Im going to
go to the meeting next Friday, Im
going to vote against them [but] I wont
be able to stop it from going through.
Even if she were to lead a successful
vote against the bonuses, the result is
only advisory, Greening said.
BY JULIAN HARRIS
POLITICS
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
BeamReach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
Justine Greening, the
secretary of state for
transport, will attend
Network Rails AGM to
oppose the bonuses
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7248 2711
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Rail bonuses
row heats up
Greek PM Papademos is trying to get agreement on a bailout Picture: REUTERS
Deadline looms in Greece
RATING AGENCIES RAISE DOUBTS ON
SCOTLAND SECURING TRIPLE A
STATUS
XtryAn independent Scotland would
not be able to count on receiving
triple A status, credit rating agencies
have told the Financial Times, poten-
tially leading to higher borrowing
costs for it if a referencum on inde-
pendence was successful. The three
leading credit rating agencies
Standard & Poors, Moodys and
Fitch indicated an independent
Scotland would not automatically
inherit the Uks top-notch rating.
CALPERS PILES PRESSURE ON APPLE
OVER THE WAY IT ELECTS DIRECTORS
Apple faces fresh shareholder pres-
sure at its annual meeting this
month from the largest US public
pension fund, to change the way it
elects directors. Calpers the
California Pulbic Employees
Retirement System has called on
Apple to allow directors to be elected
by majority voting.
EBA SCEPTICAL ON CAPITAL RAISING
The European Banking Authority is to
challenge a significant proportion of
the capital restructuring plans put
forward by some of the continents
leading banks to meet tough new cap-
ital requirements, sources say.
SABADELL SETS STAGE FOR 1.2BN
SHARE SALE
Banco Sabadell, the Spanish lender,
has begun sounding out investors
about a rights issue worth up to
1.2bn.
RICH FIGHT IT OUT FOR TOP LONDON
PROPERTIES
Demand for the best homes in
London is showing no sign of letting
up, with values rising again last
month. The residential agent Knight
Frank said yesterday that its Prime
Central London Index showed values
for top-end homes rising by 0.9 per
cent overall in January.
BOARDS FALL BEHIND IN THE DRIVE TO
APPOINT WOMEN
Britains biggest companies will miss
a deadline to have a quarter of their
boardroom positions filled by women
unless more is done to move talented
female executives up the corporate
ladder, recruiter Norman Broadbent
has warned.
DUBAI ABANDONS $10BN DEBT
RESTRUCTURING
Dubais government has walked away
from the $10bn (6.3bn) debt restruc-
turing of one of its biggest conglomer-
ates, leaving creditors, including the
Royal Bank of Scotland (RBS), with
exposure to potentially big losses.
Dubai Group, the financial services
arm of Dubai Holdings, said the emi-
rates Supreme Fiscal Committee (SFC)
had quit the negotiations and would
not inject any government cash.
US HEDGE FUNDS CAPITALISE ON
LEHMAN COLLAPSE
It may sound impossible but one of
the best financial investments of the
past three years has been a collapsed
bank Lehman Brothers.
DEXIA HEADS TO NEXT LIFE AS
FRENCH NEAR A DEAL
The French government and two
state-controlled entities are in the
home stretch to create a new munici-
pal lender from the remains of trou-
bled Franco-Belgian bank Dexia, but
they have yet to agree on the price of
a key asset, the fate of hundreds of
employees, and the exact missions of
the future company.
PEPSICO, COKE TO UPDATE INVESTORS
PepsiCo and Coca-Cola likely will
show solid profit growth when they
share their 2011 results this week, but
this year could be tougher. Investors
want more evidence US consumers
will swallow pricier soda and chips.
Domestic soda sales have shrunk.
WHAT THE OTHER PAPERS SAY THIS MORNING
MINING group Xstrata could lose out
on its merger with commodities giant
Glencore if the two companies ignore
Xstrata shareholders demands to be
offered a decent premium, investors
warned last night.
The deal, revealed last week, could
see a combined company worth 50bn
with revenues of over 110bn.
Xstrata chief executive Mick Davis is
tipped to run the merged companies
at least for an initial period but some
Xstrata shareholders would rather see
him step down altogether.
Richard Buxton, head of UK Equities
at Schroders, said he will ballot against
the merger and vote Davis off the
board if Xstrata shareholders are not
given an attractive premium.
He told City A.M., Glencore needs
Xstrata it has a higher growth rate
and better assets. If they want to get
command of that, they should pay a
control premium.
Buxton called the the 11-12 per cent
per cent speculated premium deriso-
ry and unimpressive.
However, it emerged last night that
Glencores advisers might be contem-
plating a premium as low as eight per
cent.
A source close to the deal pointed
out that there has been an 11 per cent
uplift for Xstrata shareholders since
the deal was announced.
The details of the transaction are
expected to be revealed on Tuesday
when Xstrata publishes its prelimi-
nary year-end results.
Under the terms of the merger,
Glencore which owns 34 per cent of
Xstrata will be excluded from voting
on its shareholding.
Glencore and XStrata both declined
to comment.
It is seen likely that the former BP
chief executive Tony Hayward would
become the senior non executive
director of the merged group.
Glencore bid
talks focus
on premium
BY LAUREN DAVIDSON
COMMODITIES
Xstrata chief Mick Davis could face a vote of confidence if Glencores Ivan Glasenberg fails to improve deal
New from City A.M., we bring you the latest
K
>
hs
THE BEST ROLES NEED
THE BEST CANDIDATES.
WWW. CI TYAMCAREERS. COM
News
5 CITYA.M. 6 FEBRUARY 2012
NEWS | IN BRIEF
Romney takes Nevada vote
Republican front-runner Mitt Romney
cruised to an easy victory in Nevada over
the weekend, crushing his three remaining
rivals and taking firm command of the
partys volatile presidential nominating
race. With support from a broad cross-
section of Republicans, Romney won by a
big double-digit margin over former US
House Speaker Newt Gingrich,
Representative Ron Paul and former
Senator Rick Santorum. The victory was
Romneys second in a row and his third in
the contests in the state-by-state battle to
find a Republican challenger to President
Barack Obama in Novembers general
election. It propels Romney into the next
contests in Minnesota, Colorado and
Missouri tomorrow on a growing wave
of momentum.
ANALYSIS l Xstrata PLC
p
30Jan 31 Jan 1 Feb 2Feb 3Feb
1,250
1,200
1,150
1,100
1,283.00
3 Feb
As crunch time nears theres
still a lot left to be decided
SO as expected, Xstratas share-
holders are kicking up a fuss over
the premium Glencore is offer-
ing to pay for the company, bare-
ly a year after blocking a similar
deal before Glencores record list-
ing last May.
With current talks rumoured
to be moving towards a premium
as low as a single digit figure,
investors are unlikely to be
impressed particularly as the
share price had already jumped
11 per cent since Wednesdays
close, before the talks were
announced.
Add two fiery personalities at
the top of each company, throw
in competition authorities pre-
sumably chomping at the bit to
get involved, and youve got a
heady mix of possible delays and
hurdles.
The City is desperate for a
mega merger to break the deal
drought of recent months, but
investors should be wary of
jumping the gun when theres
still so much still up in the air.
BOTTOMLINE
Analysis by Elizabeth Fournier
Whats Included
Direct ights & Resort transfers
PLUS Exclusive
Rockstar Service
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Dedicated check-in desk at the
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News
6 CITYA.M. 6 FEBRUARY 2012
LONDONERS FACE THE BIG FREEZE
Londoners came out to play yesterday as the
capital woke to a blanket of thick snow.
Alexandra Park (above) was a popular spot for
sledging, while City tourists at Bankside (right)
took the opportunity to brave the cold and see
Londons famous landmarks covered in white.
The biting weather proved testing for Occupy
London protesters at St Pauls Cathedral (left),
who faced camping in icy conditions with sub-
zero temperatures. Up to 16cm of snow
swathed parts of the UK, causing traffic prob-
lems and limited public transport. Motorists
and train operators warned of potential fur-
ther problems today as the snow melts and
turns to ice.
Pictures: LEON NEAL/AFP/Getty Images, Laura
Lean/ City A.M.
ALEXANDRA PARK
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True Blood 4
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Coming March
ABC Studios
DAVID Webster, the long-standing
chairman of Intercontinental Hotels
Group, is to stand down after eight
years at the helm of the worlds
largest hotel group.
A source close to Webster said that
no date had been set yet for his depar-
ture, but that he is likely to leave later
this year.
The owner of Holiday Inn and
Crowne Plaza brands has already
kicked off a search for his replace-
ment, with Sir Stuart Rose, the for-
mer chairman of Marks and Spencer,
and Allan Leighton, the former Royal
Mail chairman, touted as two possible
candidates for the job.
Luke Mayhew, the former manag-
ing director of retailer John Lewis,
who was appointed non-executive
director of IHG last July, is also under-
stood to be a likely candidate.
Webster, 66, joined IHG in January
2004, after seven years as chairman of
Safeway. He was one of a trio of entre-
preneurs who in 1977 formed Argyll,
a grocery business that expanded rap-
idly and was involved in a number of
takeover battles, including the firms
failed bid for Distillers, which was
sold to Guinness.
The group went on to buy the UK
arm of the American supermarket
Safeway in 1987 and grew the busi-
ness into the UKs fourth largest
supermarket. Webster stepped down
after seeing the group through a
fierce bidding war that resulted in its
merger with Wm Morrison in 2004.
Webster, son of a former Glasgow
Herald London editor, Comyn
Webster, was also formerly a non-
executive director of Reed Elsevier,
and served in the Royal Naval Reserve
for eight years from 1962 to 1970.
He has also been chairman of
Makinson Cowell, the capital markets
advisory firm, since 2004.
News of Websters retirement
comes just a year after chief execu-
tive, Andy Cosslett, stepped down, to
be succeeded by the finance director,
Richard Solomons.
Webster to
step down as
IHG chairman
NEW Liberal Democrat energy secre-
tary Ed Davey is already under politi-
cal pressure, after more than 100 Tory
MPs called on the government to
slash subsidies to wind farms.
The 101 Conservative signatories
wrote to Prime Minister David
Cameron to demand a re-think of the
coalitions energy policy.
In these financially straitened
times, we think it is unwise to make
consumers pay, through taxpayer sub-
sidy, for inefficient and intermittent
energy production that typifies
onshore wind turbines, said the let-
ter, printed in the Sunday Telegraph.
The dispute mirrors current situa-
tions in other countries, where state
subsidies for some renewable source
energy suppliers are being called into
question.
Many projects in the US have fallen
into limbo as firms await the out-
come of talks in Congress over
whether or not to continue with sub-
sidies and tax credits, including for
wind farms.
And in economically-troubled
Spain, new Prime Minister Mariano
Rajoy has temporarily suspended pay-
ments to new renewable energy
plants, as part of his ongoing
attempts to control the states large
annual budget deficit.
Tory MPs rebel
over subsidies
for wind farms
David Webster has been at the helm of IHG for eight years
BY KASMIRA JEFFORD
LEISURE
ENERGY
News
9 CITYA.M. 6 FEBRUARY 2012
VODAFONE will scrap a $1bn merger
of its Greek business with a local com-
petitor due to the belief that EU regu-
latory authorities will block the deal.
The deal with Wind Hellas will be
called off due to regulatory uncer-
tainty on EU competition law.
The turmoil of the Greek economy,
which is in a deep recession, is also a
factor, said a source.
The aim was to build a telco to rival
the Greek state player Cosmote,
which has about half the market.
Keeping London on the move
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EU competition law thwarts
Vodafones Greek merger deal
TELECOMS
News
10 CITYA.M. 6 FEBRUARY 2012
Coca-Cola Olympic mentions by category
Regional News
Topicals
Twitter
Blogs
Video
Other
National News
%
11
2
6
51
4
9
18
Brought to you by
IN ASSOCIATION with Repskan.com,
the media monitoring and analytics
platform, City A.M. is measuring the rel-
ative Olympic media buzz around the
partners for the London 2012 Olympic
and Paralympic Games, week by week.
The leaderboard, right, reflects their
ranking over the past week, in this case
from Wednesday 25 January to
Wednesday 1 February.
Coca-Cola is sponsoring the 2012 Olympic
Torch Relay, this week details of the proces-
sion and the route it will take were released.
The relay will involve 8,000 Torchbearers
who will carry the flame across the UK,
before its arrival at Londons Olympic
Stadium on 27 July 2012. Coca-Cola has
linked its sponsorship of the Torch Relay to
its community projects, promoting the
involvement of young people across the UK
and giving them opportunities to carry the
Olympic Flame.
Olympic Media Buzz
LONDON 2012 PARTNERS
TOP TEN PARTNERS BY MENTIONS
Brand Position change
Samsung 1
Coca-Cola 6
Visa 2
BMW 1
UPS 8
Adidas 8
Panasonic 3
Lloyds TSB 2
British Airways 4
Omega 7
Board members are
calling for Deutsche
Boerse chief executive
Reto Francioni to
step down
Picture: GETTY
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THE QUEEN will today celebrate her
Diamond Jubilee anniversary, with
6 February marking exactly 60 years
since her accession to the throne.
Yesterday the Queen and the
Duke of Edinburgh, who is recover-
ing from treatment for a blocked
artery over Christmas, attended
a church service in
Sandringham, as her
traditional winter break
in Norfolk comes to an
end.
Official celebrations
will take place over a
four-day weekend in
June, during which the
Queen will lead a
1000-strong flotilla
of boats on the
Thames through
London.
The Queen usu-
ally spends
Accession Day pri-
vately it is also the day her father
George VI died but this year she
has two public appearances
planned, visiting both Kings Lynn
Town hall and a local nursery
school.
In her Diamond Jubilee year the
Queen has said she will try to visit
as much of the UK as possible, while
other members of the Royal family
travel further afield to take cel-
ebrations round the world.
Prince William and the
Duchess of Cambridge
will visit Asian countries
where the Queen is head
of state, including Malaysia,
Singapore and the Solomon
Islands.
Prince Charles and the
Duchess of
Cornwall will visit
o t h e r
Commonwealth
countries, includ-
ing Australia,
and New
Zealand.
Queen marks
sixty years
on the throne
BY ELIZABETH FOURNIER
MONARCHY
News
12 CITYA.M. 6 FEBRUARY 2012
City panel concerned about the
impact of Financial Services Bill
PoliticsHome.com PoliticsHome.com
In association with
Completely aware
Somewhat aware
Somewhat unaware
Completely unaware
Dont know
%
How much do you know about the financial services bill?
1%
23%
19%
13%
45%
Very concerned
Somewhat concerned
Neither concerned
nor unconcerned
Somewhat unconcerned
Very unconcerned
%
How concerned are you about the impact of the bill as a whole?
Dont know
3%
4%
15%
23%
13%
42%
Strongly agree
Somewhat agree
Neither agree
nor disagree
Somewhat disagree
Strongly disagree
%
To what extent do you agree that the bill will lead to the UK
avoiding another financial crisis?
Dont know
15%
23%
13%
42%
%
1%
4%
18%
26%
29%
23%
AS MPs debate the new Financial
Services Bill in the Commons
today, almost 60 per cent of our
Voice of the City panel have con-
fessed to being concerned about
the overall impact it could have
on the UK.
Fifteen per cent of our
panel surveyed in associa-
tion with
PoliticsHome.com, said
they were very con-
cerned about the bill,
announced by MP
Mark Hoban (right)
which is supposed to
provide a more robust
regulatory system for
the City.
A further 42 per
cent said
t h e y
were somewhat concerned.
More worryingly, perhaps,
almost a third of respondents
admitted to being either com-
pletely or somewhat unaware
of the Bill, which will establish a
new system of regulation, includ-
ing introducing a new City regu-
lator to replace the Financial
Services Authority.
And even those who
are aware of the Bill
seem sceptical about
its worth, with just
19 per cent agreeing
that it will fulfill
one of its core objec-
tives to stop the UK
falling into another
financial crisis, com-
pared to 55 per cent
who disagreed with
the idea that it
would
help.
BY ELIZABETH FOURNIER
BANKING
Zuckerberg faces
whopping tax bill
PRIVATE equity firm Permira is on the
lookout for a new chief executive for
All3Media, in which it owns a majori-
ty stake, as current head Steve
Morrison, 64, prepares to step down.
A headhunter has been brought in
as it is thought likely that the new
chief executive will be an external
candidate.
All3Media, the British television
production company behind Peep
Show, The Only Way Is Essex and
Midsomer Murders, made record
profits in 2011.
The UKs biggest production com-
pany reported a 28 per cent revenue
hike to 465m, alongside a 20 per
cent jump in earnings before interest,
taxes, depreciation and amortisation
to 64m.
However, attempts to sell the com-
pany for 750m last year failed.
Steve Morrison, who has been with
All3Media since its 2003 birth, will
remain involved with the company in
the new role of chairman.
All3Media sets
hunt for new
chief in motion
MEDIA
News
15 CITYA.M. 6 FEBRUARY 2012
ONLINE car sales network
AutoTrader.com is making prepara-
tions to list as a public company,
according to Bloomberg, following
in the footsteps of Facebook which
last week filed for a staggering
$5bn IPO.
The website, which is owned by
Cox Enterprises (75 per cent) and
Providence Equity Partners (25 per
cent), is said to be currently in dis-
cussions with banks about the
move.
This could be a bid to cash in on
the rising automative industry,
where sales of new vehicles in the
US are returning to pre-recession
levels and used-car prices are at a
near record.
AutoTrader took a stab at float-
ing in 2000, but withdrew the
offering before it hit the market.
The car sales website could have
taken a confidence boost from the
string of recent internet flotations.
Shares in LinkedIn, Groupon and
Zynga which listed last year
jumped last week on news of
Facebooks coming public offering.
All three internet companies are
trading above their IPO price.
Founded in 1997, AutoTrader
attracts more than 14m buyers
each month to its website.
AutoTrader declined to com-
ment.
AutoTrader website takes first
steps to file for public offering
TECHNOLOGY
EMPLOYMENT
News
17 CITYA.M. 6 FEBRUARY 2012
SCOTLAND
21.8%
FIRST-TIME BUYERS ARE MOST COMMON IN LONDON
EAST
MIDLANDS
19.0%
Percentage of those who expect
to buy in the next 12 months
that will buy for the first time
NORTH
WEST
26.3%
WALES
22.0%
WEST
MIDLANDS
22.7%
SOUTH
WEST
20.1%
SOUTH
EAST
21.0%
GREATER
LONDON
41.5%
EAST
ANGLIA
21.6%
YORKSHIRE&
HUMBERSIDE
22.1%
NORTH
24.5%
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BUSINESSES are slashing investment,
slowing hiring and freezing pay thanks
to worries over the economic outlook,
according to the Institute of Chartered
Accountants in England and Waless
(ICAEW) business confidence monitor,
published today.
Sentiment among small manufactur-
ers declined for the third quarter run-
ning according to the Confederation of
British Industry (CBI).
However, services output expanded in
January, Markits purchasing managers
index (PMI) showed on Friday, and retail
sales last month were better than
expected according to todays BDOs
high street sales tracker.
The ICAEW confidence index sta-
bilised at minus 9.3 for the first quarter
of 2012, from minus 9.7 in the previous
quarter which saw the first negative
reading since mid-2009. The weak data
point to a 0.2 per cent decline in GDP
this quarter, the Institute believes tak-
ing the UK into recession.
The subdued outlook means average
salary growth is set to slow to 1.1 per
cent. Unemployment is set to keep ris-
ing with small firms expect to increase
headcount by 1.8 per cent and larger
firms by just 0.5 per cent.
Meanwhile small manufacturers out-
put was flat over the three months to
January, the CBI reported, with 33 per
cent fearing export orders will be hit by
the Eurozone crisis.
However, mid-market retailers report-
ed modest sales growth of 0.2 per cent
year on year in January the BDO said.
The services sector rebounded, Markit
reported on Friday, registering strong
growth in employment.
Recession risk
on low morale
Workers are facing the cold shoulder as firms look to freeze pay and hiring in 2012 Picture: PA
BY TIM WALLACE
UK ECONOMY
News
18
ANALYSIS l Business confidence points
to a recession
Index
London
UK confidence index
Q1 2012 Q1 2008 Q1 2009 Q1 2010 Q22011
40.0
30.0
20.0
10.0
0.0
-10.0
-20.0
-30.0
-40.0
-50.0
-60.0
London Southend
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BANK lending will contract through
2012 for the first time since 2009, with
small and medium-sized enterprises
(SMEs) particularly badly hit, the Ernst
and Young Item Club predicted today.
Total bank loans will contract by 2.2
per cent in 2012, the report forecast,
followed by growth of just 0.9 per cent
in 2013.
The fall compares with estimated
4.3 per cent growth in 2011.
SMEs face a 5.7 per cent fall in lend-
ing this year, with construction and
real estate among the worst hit.
Furthermore the cost of credit is
expected to keep rising.
The average interest rate on small-
er loans, of 1m or less, is already dou-
ble that charged on loans of 20m or
more, and we expect this trend to con-
tinue, warned Item Clubs Neil Blake.
As these young companies tend to
be high-growth businesses, this will
have adverse knock-on effects for eco-
nomic growth.
The credit crunch will also extend to
consumers who are set to see bank
lending fall by a further 5.4 per cent,
and will not see loans return to 2011
levels until 2014, the Item Club
believes.
However, the non-bank sector is
expanding quickly bank and build-
ing society unsecured lending to indi-
viduals fell by 23 per cent, or 34bn,
since 2008, while lending by high-costs
consumer credit providers has risen 42
per cent, or 29bn, over the period.
SMEs to bear
brunt of new
credit crunch
ECONOMISTS widely expect at least
another 50bn of quantitative easing
(QE) to be announced by the Bank of
Englands Monetary Policy
Committee (MPC) on Thursday.
Committee members including
governor Mervyn King have dropped
clear hints that they will buy more
government bonds to lower interest
rates and boost demand, slowing
inflations rapid decline with the aim
of hitting the two per cent target in
the medium term.
Economists at Barclays Capital
believe the inflationary impact of QE
may have been overstated.
Money and credit in the economy
continued to shrink in December,
and the additional 50bn of QE we
expect is unlikely to halt the slide,
said Chris Crowe, arguing the link
between QE and nominal income is
weaker than previously assumed.
Meanwhile economists at Citi
believe the MPC will go further
through 2012, predicting QE will
reach 600bn by the end of the year.
For the February meeting we fore-
cast the MPC will expand QE by
75bn, said economist Michael
Saunders. For the longer-term pic-
ture, our view is partly based on our
view that as inflation slows the MPC
will be more willing than many
expect to use QE to boost the econo-
my against a range of headwinds.
Bank of England expected to release
another 50bn of quantitative easing
BY TIM WALLACE
UK ECONOMY
News
CITYA.M. 6 FEBRUARY 2012
BY TIM WALLACE
UK ECONOMY
19
ANALYSIS l Bank lending
Value of loans
indexedfrom
Jan 2007
Jan07 Jan08 Jan09 Jan10 Jan11
Other consumer credit providers
Banks andbuildingsocieties
150
140
130
120
110
100
90
80
70
60
February 2012
+50bn*
TOTAL: 325bn
QE starts
March 2009
75bn
May 2009
+50bn
August 2009
+50bn
September 2011
CPI inflation hits
5.2%
Bank of England estimates
QE added
1.5 2%
to GDP, and
0.75 1.5%
to inflation
October 2011
+75bn
BANK POISED TO PRINT MORE MONEY
November 2009
+25bn
TOTAL: 200bn * Expected amount
P
i
c
t
u
r
e
:
L
a
u
r
a
L
e
a
n
C
i
t
y
A
.
M
.
TRAVEL company Thomas Cook
Group has hired Credit Suisse to sell
off its Indian foreign exchange busi-
ness, according to weekend reports.
The sale is part of Thomas Cooks
planned divestments of non-core
assets to raise 200m to reduce debt
and shore up the troubled companys
balance sheet.
Thomas Cook was not immediately
available for comment on the Sunday
Times report. Thomas Cook swung to
an annual loss last year after a series
of profit warnings and the resigna-
tion of chief executive Manny
Fontenla-Novoa in August.
THE Bakrie familys shareholder part-
ner in Bumi, Samin Tam, is due in
London this week in a bid to persuade
institutional shareholders to oust Nat
Rothschild off the board of the coal-
mining company.
The Bakries who set up their ven-
ture with Rothschild just over a year
ago sold half their stake in Bumi last
November to a group backed by
Indonesian businessman Samin Tan,
helping them to avoid default on a
$1.35bn loan.
In a surprise statement on Friday,
the Bakrie family and Tan, who
together control a 29.9 per cent voting
stake, called for an extraordinary gen-
eral meeting to discuss a shake-up of
the board.
Tan has proposed himself and Indra
Bakrie as co-chairmen the role cur-
rently held by Rotschild and has also
tabled resolutions to remove four
other directors including James
Campbell, a former Anglo American
head of coal and fellow founder of
Bumi, chief executive Ari Hudaya,
who is also chief executive of part-
owned, listed miner PT Bumi, and
chief financial officer Andrew
Beckham.
The London-listed Bumi was
formed when Rothchilds cash shell
Vallar bought stakes in two
Indonesian coal mining companies
called Berau and PT Bumi Resources
forming Bumi in a reverse takeover.
The latest move has sparked specu-
lation of a deepening rift between
Rothschild and his Indonesian part-
ners, after he wrote a letter to Hudaya
calling for a radical cleaning up of
PT Bumi Resources corporate gover-
nance culture.
The two sides appeared to have
made amends in December after
Rothschild met Indra Bakrie in
Singapore and the Bakries agreed on a
debt repayment schedule for 2012.
Bakrie ally in
bid to unseat
Rothschild
MICRON Technology yesterday
announced that Mark Durcan, 51,
had been appointed chief executive
replacing Steven Appleton, who was
killed Friday when the small plane he
was piloting crashed at an airport
near the company headquarters in
Boise, Idaho.
Durcan had been Micron's presi-
dent and chief operating officer. On
Saturday he was also appointed to the
company's board.
The company remains shaken by
the loss of its leader. Appleton was
one of the most prominent figures in
the semiconductor industry.
Durcan to take
over at Micron
Thomas Cook
eyes disposal
BY KASMIRA JEFFORD
MINING
LEISURE
TECHNOLOGY
Bromley Mind
Head of Services
40,000pa 37.5 hours per week
Based in Orpington
Bromley Mind is a dynamic, successful provider of mental health and de-
mentia services with a reputation locally and nationally for quality and inno-
vation. Success in attracting new funding has enabled us to continue to
grow despite a challenging financial climate.
We are looking for an experienced leader and manager with the skills to
take forward our diverse services. As a key member of the Senior Manage-
ment Team, you will be responsible for service delivery across the organi-
sation, and play a central role in the strategic and business development of
Bromley Mind.
Educated to degree level or equivalent, you will have a strong track record
in senior management, including leading service and project development,
supervising and developing staff. You will have specific experience in pro-
viding services for people with mental health needs and/or dementia,
preparing tenders and/or funding bids and leading teams through service
transformation.
You will be an excellent communicator, able to enthuse and motivate peo-
ple within and outside our organisation.
More details and an application pack can be downloaded from our
website
http://www.bromleymind.org.uk/work-for-us/current-vacancies#head-of-services
www.bromleymind.org.uk
Successful applicants will be expected to undergo an Enhanced level Criminal Records
Bureau check
Bromley Mind is committed to equality of opportunity and welcomes applications from candidates with personal
experience of mental health needs
Registered Charity: 1082972
Closing date:
12.00pm on Tuesday 7th February 2012
Likely Interview date:
Friday 17th February 2012
News
20 CITYA.M. 6 FEBRUARY 2012
ANALYSIS l Bumi PLC
p
30Jan 31 Jan 1 Feb 2Feb 3Feb
890
880
870
860
850
850.00
3 Feb
the rest - other institutional shareholders
47%
11%
11%
5%
4%
3%
%
Rosan Roeslani
Samin Tan & Bakrie Family
Nat Rothschild
Abu Dhabi Investment Authority
Schroders
Blackrock
ANALYSIS l Bumi/Rothschild Story
Nat Rothschild is
facing opposition
at Bumi
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A PAKISTANI textile billionaire is
understood to be putting together a
surprise bid to rescue Peacocks with
the collapsed retailers management
team.
The fashion chain went into
administration last month in the
biggest retail collapse since
Woolworths, after plans to restruc-
ture the company broke down and
banks pulled the plug on funding.
Alshair Fiyaz, who is worth an esti-
mated 3bn, is working with Solstra
Capital, a Danish investment fund
part-owned by Fiyaz that manages
1bn of assets. It is expected to sub-
mit a second-round bid tomorrow, it
was reported yesterday.
He is understood to be working
with Peacocks managing director
Tim Bettley, and other members of
its senior management team includ-
ing Roy Ellis, finance director.
Peacocks administrators KPMG
received six first round bids last
Monday but interest from private
equity bidders is believed to have
dimmed.
KPMG has already announced 249
redundancies from Peacocks head
office in Cardiff last month and
more than 8,000 jobs are at risk if
the administrators do not find a
buyer for the firm.
Fiyaz has been involved in some
retail deals in the past, including the
purchase of Danish department
store business Magasin du Nord by
Solstra Capital three years ago,
which was then leased to
Debenhams.
However, his main interests lie
with his shipping and financial serv-
ices business ALFI Investments.
Textile tycoon
makes move
on Peacocks
DEBENHAMS has unveiled its latest
womenswear collection created by
one of the Duchess of Cambridges
favourite designers, as part of the
retailers ongoing move to grow its
market share of occasionwear ahead
of its rivals.
British designer Jenny Packham
also a favourite among Hollywood A-
listers will launch an affordable
range of dresses, accessories and chil-
drenswear across 72 of Debenhams
166 stores in April and will expand
into a further 56 later in the year.
The announcement comes as
Debenhams chief executive Michael
Sharp said the group enjoyed a better-
than-expected Christmas, largely due
the success of its Designers at
Debenhams ranges, which are sold on
an exclusive basis.
The department store said its best-
performing designer range was the
young fashion range H by Henry
Holland.
Packham is best-known for her
bridalwear and the new collection
No. 1 Jenny Packham will cater for
bridesmaids and wedding guests,
with prices ranging between 85 to
160.
Debenhams also announced an
exclusivity deal last week with the US
casual clothing brand Nautica.
Debenhams
launches Jenny
Packham range
Debenhams hopes to grow its market share with Jenny Packhams fashion range
BY KASMIRA JEFFORD
RETAIL
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News
22 CITYA.M. 6 FEBRUARY 2012
NEWS | IN BRIEF
Putin protests gather steam
Vladimir Putins opponents vowed yes-
terday to press on with demonstrations
against his 12-year domination of Russia
after tens of thousands attended a
march which kept up the momentum of
their protest movement. Well be back,
the organisers said on a social network
site, one day after demonstrators defied
the cold to stage the third mass rally
since anger mounted over alleged fraud
in a parliamentary election won by
Putins party on 4 December.
Deutsche Telekom bids for rights
Deutsche Telekom will bid on its own for
exclusive satellite and cable rights to
show Germanys Bundesliga soccer
games live, a magazine reported, open-
ing a possible bidding war with Sky
Deutschland. Should Telekom receive the
rights, which are estimated to cost
about 225m (187m) every year, Der
Spiegel reported yesterday that it might
look to sell the cable rights to a third
party.
Chronicle wins at the box office
Thriller Chronicle edged ahead of
haunted house film The Woman in
Black in a tight box-office race that
saw both movies beating pre-weekend
forecasts, studio estimates released yes-
terday showed. Chronicle brought in
an estimated $22m from US and
Canadian theatres.
Multi-millionaire Nigel Doughty donated at least 3.5m to the Labour party.
ANALYSIS l Olympus Corp
3
3
CHELSEA
MANCHESTER UNITED
Man City 24 18 3 3 63 19 57
Man United 24 17 4 3 59 24 55
Tottenham 23 15 4 4 44 25 49
Chelsea 24 12 7 5 44 29 43
TOP FOUR
TEAM PLD W D L F A PTS
Swann pleased spin twin
Panesar proves his worth
Hartley pride as Lancaster
era starts on winning note
ENGLAND hooker Dylan Hartley has
hailed the discipline and character of
an inexperienced side after they over-
came pressure and a hostile environ-
ment to get the Six Nations and the
Stuart Lancaster era off to a winning
start.
Captain Chris Robshaw, winning
only his second cap, and debutants
Owen Farrell, Brad Barritt and Phil
Dowson earned plaudits as England
fought back to defeat Scotland 13-6 at
Murrayfield on Saturday night. It was
not pretty but the result was just the
start that interim head coach
Lancaster had hoped for, and bore out
his pre-match emphasis on forging
unity among a new-look squad.
Hartley said: People talk about
experience. Experienced teams dont
give away penalties; we had a lack of
experience and our discipline was
superb. Defence is an attitude and it
sure as hell came through. It shows
great character in the side.
England regroup today with two
changes to the squad, including the
return of fit-again fly-half Toby Flood,
ahead of Saturdays trip to face Italy
in Rome. Harlequins Karl Dickson
replaces his brother Lee, who broke a
hand bone in the Calcutta Cup win.
ENGLAND must climb a mountain
if they are to avoid a humiliating
whitewash in the third Test against
Pakistan today, according to spinner
Graeme Swann.
Set 324 to win a target which
would have been substantially larger
had Monty Panesar not returned fig-
ures of 5-124 as the hosts lost their
last seven wickets for 34 runs
England reached 36-0 at the close to
offer them hope of ending a forget-
table series on a high.
Further encouragement could be
sought from the mammoth third-
wicket partnership of 216 between
Younus Khan (127) and Azhar Ali (157)
which suggested conditions are not as
hostile as the other scores in this
match would indicate.
But Englands neurosis against
spin, which has been largely responsi-
ble for them posting five consecutive
sub-200 scores, means they cannot
approach the task of reaching their
highest total of the series with any
justifiable confidence.
On current form, its an absolute
mountain to climb, said Swann. But
I think were due a decent score in
this series. Im forever the optimist
and Id like to think a couple of the
CONTINUED ON PAGE 35
Climb mountain or face a
whitewash, warns Swann
Sport
36 CITYA.M. 6 FEBRUARY 2012
ROBSHAW REMINDS
ME OF DALLAGLIO
WORLD CUP WINNER
LEWSEYS VERDICT: P34
BY FRANK DALLERES
RUGBY UNION
France 1 1 0 0 30 12 2
England 1 1 0 0 13 6 2
Wales 1 1 0 0 23 21 2
Ireland 1 0 0 1 21 23 0
Scotland 1 0 0 1 6 13 0
Italy 1 0 0 1 12 30 0
SIX NATIONS
TEAM P W D L F A PTS
BY JAMES GOLDMAN
CRICKET
3
3
CHELSEA
MANCHESTER UNITED
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