Cityam 2013-01-25

STOCKS ROAR BACK
Apple Inc
24Jan 18Jan 21 Jan 22Jan 23Jan
490
470
510
450
$
450.50
24Jan
FTSE closes at highest since May 2008 and S&P 500 smashes through 1,500 as bulls storm back into equities
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FTSE 100 6,264.91 +67.27 DOW 13,825.33 +46.0 NASDAQ M3,130.38 -23.29 /$ 1.58 unc / M1.18 -0.01 /$ 1.34 +0.01
ISSUE 1,805 FRIDAY 25 JANUARY 2013
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DEBATE: Page 19

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from 26/11/12 to 30/12/12 is 127,678
hit $450.50 a low not seen for 12
months. The fall threatened Apples
position as the worlds highest-valued
company, with its market
capitalisation now sitting at $423bn,
less than $10bn higher than
ExxonMobil, which Apple leapfrogged
one year ago today.
Such is Apples weight on Nasdaq
that despite a global market rally
yesterday, the index was dragged
down by 0.8 per cent.
On Wednesday night, Apple
reported record quarterly profits and
revenues on all-time high iPhone and
iPad sales. But the firm missed
revenue forecasts, and warned of
slowing growth and lower profit
margins in the next quarter. The fall
Apples biggest in one day for four
years means that its shares have now
dropped by more than a third since
their $702 high. Analysts warned the
company needs to be reinvigorated by
new technology to continue to grow
at the rate it has done until now. To
re-accelerate growth, Apple likely
needs to launch new products, yet few
seem likely before June, Nomuras
Stuart Jeffrey said.
APPLE saw more than $60bn (38bn)
wiped off its market value yesterday
as investors bailed out of the
company following a set of results
that disappointed Wall Street.
After the technology giants
revenues for the last three months of
2012 missed analyst forecasts, shares
fell by 12.4 per cent in New York to
BY JAMES TITCOMB
... but Apple is left out in the cold after disappointing results
HOLLYWOODS TAKE ON THE HUNT FOR BIN LADEN
ZERO DARK THIRTY
STOP CHEERING
A WEAK POUND
Andrew Sentance in the Forum, Page 18
Jul Oct 2009 2010 2011 2012 2013
3,500
4,000
4,500
5,000
5,500
6,000
Apr Jul Oct Apr Jul Oct Apr Jul Oct Apr Jul Oct
,
,
CLOSING PRICE
2 MARCH 2009
FTSE falls below the 3,700
mark for the rst time since April 2003
6,264.91
24 JANUARY 2013
UK STOCK markets turned a corner
yesterday after blue chip firms
spurred the FTSE to its highest level
in nearly five years, giving London its
best start to the trading year since
1989.
The FTSE 100 list of Britains biggest
companies surged past the 6,200
mark to its highest level since May
2008, capping off a week of consecu-
tive gains and cementing expecta-
tions that 2013 will deliver a return to
stronger equity markets.
Yesterdays close of 6,264.91, up just
over one per cent, added an estimat-
ed 17bn to the value of Britains top
firms, with both the FTSE 250 and
FTSE All Share also making
gains.
Across the pond the US
S&P 500 also smashed
through the 1,500 mark
for a brief time yester-
day, the first time it has
breached the level
since December 2007.
The FTSEs momen-
BY MICHAEL BOW
tum was driven by solid economic
data from around the world and
talks about a potential deal involving
mobile phone giant Vodafone selling
its stake in Verizon Wireless. There
were also rumours that first esti-
mates of the UK GDP reading for the
end of 2012, due this morning, might
come in higher than expected.
And manufacturing data from
China and the United States, the
worlds two largest economies, grew
at the fastest pace in about two years
this month, providing some sign that
the global economy is heading into
the rest of 2013 in better shape than a
year ago.
Yesterdays rally is in stark contrast
to the dark days of March 2009,
when the FTSE fell below 3,700
for the first time since April
2003.
The FTSE 100
has gained 6.2
per cent
since the
start of
t h e
year its best for 23 years and has
been propelled ever higher by better
performing financial stocks.
Despite drastic job cuts in the bank-
ing sector, markets have cheered
plans for smaller, nimbler banks,
while Barclays, HSBC and Lloyds
Banking Group have all contributed
to driving the index higher.
Barclays added 1.35 per cent yester-
day to close at 300p, having seen its
share price double since last July.
Meanwhile Lloyds climbed 2.81 per
cent to 53.48p up from just 30p a
year ago, and HSBC finished the day
1.41 per cent higher at 704.9p,
consolidating gains that
have seen it improve
its share price by
almost a quar-
ter in the last 12 months.
The FTSE All Share Index has gained
7.64 per cent since the start of the
year, and is close to 25 per cent high-
er versus a year ago.
The S&P 500 closed at 1,494.82 yes-
terday, while the Dow Jones hit
13,825.33. The Nasdaq fell by 23.29
points to close at 3,130.38, dragged
lower by Apples sharp fall.
Yesterdays bullish mood was also
strengthened by numbers published
by Bank of America Merrill Lynch,
which revealed $35bn had come back
into equity funds around the globe in
the past 13 days, $19bn of which were
in long only equity funds.
The great rotation has begun and
the big picture is transitioning from
deflation and deleveraging to a nor-
malization of growth, rates and risk
appetite, chief investment strategist
Michael Hartnett said in a note to
clients. And while the industry flow
data does not show rotation out of
bonds, our private client data does.
Some $800bn of investors cash has
flowed into bond funds over the past
seven years and cashed in on $600bn
from equity profit taking.
MARKET REPORT: Page 17

allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Osborne and Clegg clash
over way to fix economy
GEORGE Osborne yesterday rejected
a call from the International
Monetary Funds chief economist to
adopt a less aggressive stance on cut-
ting the UKs deficit.
The IMFs Daniel Blanchet suggest-
ed this years Budget, due in March,
would be a good time to take stock
and make changes to the austerity
plan and slower fiscal consolida-
tion may be appropriate.
But the chancellor, speaking at the
World Economic Forum in Davos,
rejected the proposal, saying any
reduction in spending cuts would
risk Britains economic credibility.
That credibility is very hard won
and easily lost and I think it would
be a huge mistake to put that at
risk, Osborne told an audience in
the Swiss alps.
Osbornes views appeared to contra-
dict those of deputy Prime Minister
Nick Clegg, set out in an interview
yesterday where he seemed to regret
the extent of the cuts to capital
expenditure under the coalition.
If Im going to be sort of self-criti-
cal, there was this reduction in capi-
tal spending when we came into the
coalition government. I think we
comforted ourselves at the time that
it was actually no more than what
[former chancellor] Alistair Darling
spelt out anyway, so in a sense every-
Fears over ECB funding scheme
Concern is mounting among senior
bankers that the European Central Banks
special longer-term funding scheme risks
backfiring, stigmatising the regions
weaker banks a year after it was launched.
From the end of January banks have the
opportunity to start paying back the
cheap three-year money they borrowed
under the ECBs longer-term refinancing
operation. Bankers fear the early
repayment window will hasten the advent
of a two-tier banking market in the
region.
Ikea founder questions expansion
Conflict appears to be brewing at the top
of Ikea after the founder of the flat-pack
furniture retailer expressed surprise over
managements plans to double the pace
of store openings.
EU carbon prices crash to record low
The worlds biggest carbon market was
left in disarray on Thursday, with prices
briefly crashing almost 40 per cent in a
matter of minutes, after European
politicians rejected a plan to prop up
prices.
Mot billionaire boss moves
The richest man in France Bernard Arnault
has transferred his multibillion-euro
fortune to Belgium. Aides said he had
made the move not for tax reasons but to
ensure LVMH remained in the family when
he died.
Timpson cobbles Snappy Snaps deal
The family behind Timpson is diversifying
from shoe repairs into passport pictures
through a deal to take over Snappy Snaps
for a price of between 2m and 3m.
Boris: Junk rhetoric of austerity
Boris Johnson is to demand government
junks the rhetoric of austerity and backs
multi-billion pound investments in
housing and transport. The Mayor will
outline a plan to leaders in Davos.
BoA issues bond crash Fed alert
The return of confidence and healthy
growth in the US risks setting off a bond
crash comparable to 1994 and triggering
a string of upsets across the world, Bank
of America has warned.
Toyota, BMW to share technology
Toyota and BMW said they will expand a
technology-sharing pact, the latest sign
of a deepening partnership. Toyota will
provide BMW with technical know-how
for fuel-cell vehicles.
Citi to pull SAC Capital investment
Citigroups private bank has decided to
pull its $187m investment from SAC
Capital, the latest client defections amid
scrutiny of the hedge-fund firm.
THE size of the Federal Reserves
balance sheet reached a record,
Fed data released yesterday
showed, due to the central banks
purchases of Treasuries and
mortgage-backed securities that
are part of its unconventional
policy aimed at supporting
economic growth.
The Federal Reserves balance
sheet which is a broad gauge of
its lending to the financial
system stood at $2.994 trillion
(1.897 trillion) on 23 January, up
from $2.946 trillion on 16 January.
Fed data shows
record balance
George Osborne said his austerity plans were keeping state borrowing costs low
2
NEWS
BY CITY A.M. REPORTER
SOCIAL network Twitter, the
social network known for its 140-
character messages, hinted at the
direction of its evolution yesterday
with the launch of a new
streaming video service for
smartphones.
The service, called Vine, records
six-second-long video clips, which
can then be seamlessly embedded
within tweets.
Privately held Twitter is
expected by analysts to go public
within two years.
Twitter rolls out
video function
BY JAMES WATERSON
To contact the newsdesk email news@cityam.com
T
ODAY is GDP day, when the
Office for National Statistics
releases its first, early and ultra-
preliminary estimate of the
growth of the UK economy. As ever,
the media, the markets and the
political classes will massively over-
react to whatever gross domestic
product (GDP) number is released,
good or bad. I would urge everybody
not to pay too much attention.
It is clear that the UK is performing
poorly, with real wages falling, retail
sales stagnating and the budget
deficit increasing again. But it is hard
to accurately measure the size of the
overall economy and GDP figures are
not only spuriously accurate but also
subject to shockingly large revisions.
Vital research by Sam Williamson of
the University of Illinois, published on
econobrowser.com, shows that the
extent of these revisions can be
EDITORS
LETTER
ALLISTER HEATH
Why you should take economic statistics with a bucket of salt
FRIDAY 25 JANUARY 2013
extraordinarily significant.
Until about 18 months ago, the
Office for National Statistics (ONS)
thought UK GDP (in real terms, meas-
ured in 2009 prices) had grown by
2.43 per cent per year over the past 62
years. Per person, GDP had grown by
2.06 per cent a year, from 6,428 in
1948 to 22,410 in 2010. Then came
the Blue Book 2011 and 2012, the key
annual documents about the econo-
my, and everything changed, thanks
seemingly to a decision to use a differ-
ent measure of inflation.
The ONS now believes the economy
has been growing by 2.68 per cent a
year over the past 62 years much
faster. GDP per person is now deemed
to have grown by 2.31 per cent a year,
from 5,559 in 1948 to 22,920 in
2010. Our statistical masters have
decreed that the economy was actual-
ly 14 per cent smaller than previously
thought in 1948 astonishingly, fig-
ures first out more than six decades
ago are still being revised, which sug-
gests that todays data will probably
look very different by 2075.
There are numerous other almost
unbelievable changes. The biggest
revisions are to our performance in
the 1950s (up almost 0.4 per cent a
year) but every decade has been
improved, at the stroke of a statisti-
cians pen. Thousands of economic
studies, including hugely important
supposed quality improvements in
the public sector (such as better A-
Level grades) started to be treated as
increased output. Then there are all
the short-term changes, the endless
revisions going back a few years that
sometimes turn what we thought was
a terrible, negative quarter into a pos-
itive one. The inevitable problem is
that the ONS relies heavily on surveys
of the activity of existing firms, thus
missing some new ones.
The fact that statisticians can simply
rewrite the past is deeply depressing;
what seems like objective reality is in
fact little more than a social con-
struct (as an over-caffeinated French
philosopher might put it). The econo-
my is doing poorly but dont take
todays figures too seriously.
work, have become worthless
assuming, of course that the new
data is more accurate than the old.
Either way, its a disaster for our
understanding of economic history.
The new numbers suggest the econ-
omy grew by 3.03 per cent a year in
the 1950s, peaking at 3.18 per cent a
year in the 1960s before slowing to
2.07 per cent in the 1970s, accelerat-
ing back to 3.09 per cent in the 1980s,
before expanding by 2.77 per cent in
the 1990s and by a miserable 1.77 per
cent in the 2000s, the worst of the
post-war decades. These figures would
be fascinating if they hadnt emerged
from such a breathtaking re-rewrit-
ing of history.
Over the past decade, I have wit-
nessed and written about other such
massive revisions. There were huge
changes when new European
accounts were introduced and when
body was predicting a significant drop
off in capital investment.
Clegg added: But I think weve all
realised that you actually need, in
order to foster a recovery, to try and
mobilise as much public and private
capital into infrastructure as possible,
Clegg told The House magazine.
Meanwhile Angela Merkel told the
Davos conference that European lead-
ers must keep down the cost of labour
to ensure the EU remains competitive,
adding that fiscal consolidation and
growth are two sides of the same
coin.
The German chancellor also declined
to criticise David Camerons decision
to call for a referendum on Britains
continued membership of the EU and
the two leaders held private discus-
sions yesterday afternoon.
The Prime Minister used his speech
at the conference to repeat his attacks
on tax avoidance. Companies need to
wake up and smell the coffee, because
the customers who buy from them
have had enough, he said. I am a low-
tax Conservative. But Im not a compa-
nies-should-pay-no-tax Conservative,
he told business leaders.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
IN BRIEF
Pay cut for Morgan Stanley chief
nMorgan Stanley chief executive
James Gorman received lower pay for
2012 after profits declined but the
bank showed progress in reshaping its
businesses. Gorman received $6m
(3.8m) in total compensation for
2012, including $800,000 in salary,
$2.6m in deferred cash and $2.6m in
stock options, a person familiar with
the matter said yesterday. He did not
receive a cash bonus. Gorman made
$8.56m for 2011.
Samsung posts record profits
nSamsung Electronics reported a
record quarterly profit of $8.3bn
(5.3bn) and kept its 2013 investment
plans at the previous years level,
defying expectations that it may
reduce spending amid weaker
demand for computer chips. The
South Korean firm said October to
December operating profit increased
89 per cent from a year ago to 8.84
trillion korean won, in line with its
earlier estimate.
Amazon buys voice tech firm
nAmazon said yesterday it had
snapped up text-to-speech
technology company Ivona Software,
a sign that the worlds largest Internet
retailer may be looking to develop
more services similar to Apples Siri
voice-based search product. Ivonas
technology already supports several
features on Amazons Kindle Fire
tablet computers, such as text-to-
speech, said Dave Limp, who oversees
the Kindle business.
BANKING fees for new company
share issues should be aligned with a
floated groups share price several
months after the first day of dealings,
Sacha Sadan, director of corporate
governance at Legal & General, said
yesterday.
Sadan, whose firm manages 391bn
of assets, said yesterday: How come
day one of the flotation is the day that
we set the fees? Were not saying the
size of the fees is the issue; we just
want it better aligned with a new
issues stock market performance.
Sadans comments are the latest
salvo in the war of words that has been
raging for the past couple of years
between investors, investment banks
and private equity owners, who are
struggling to revive Londons mori-
bund IPO market.
Last year there were only four main
market IPO share issues, the lowest
number since 2009.
Sadan said he also favoured smaller
banking syndicates so that banks had
more accountability and there might
be more independent analyst
research. How do we get the market
working again? Its in everybodys
interest to sort this, he said.
One executive of a company that
intends to float shortly said: Wed
love to float in London but the London
markets been effectively closed for a
long time.
Fund manager
calls for reform
of IPO market
BY DAVID HELLIER
COMPUTING giant Microsoft yester-
day posted a quarterly drop in prof-
its, as slow sales of its Office software
dragged down a positive start for its
freshly minted Windows 8 system.
Sales rose three per cent overall to
$21.5bn (13.6bn) for the three
months ending December 2012, the
company said last night, but profits
slid to $6.4bn, down from $6.6bn in
the year previously.
This equated to 76 cents a share
this quarter versus 78 cents a quarter
a year ago. Analysts had pinned
hopes on profits of 75 cents a share.
The companys flagship Microsoft
Office software had a sluggish quar-
ter, with revenues falling 10 per cent
to $5.7bn. Windows sales leapt, how-
ever, by 24 per cent, hitting $5.9bn.
Our big, bold ambition to re-imag-
ine Windows as well as launch
Surface and Windows Phone 8 has
sparked growing enthusiasm with
our customers and unprecedented
opportunity and creativity with our
partners and developers, chief exec-
utive Steve Ballmer said.
Microsoft profit
dips in spite of
new Windows 8
BY MICHAEL BOW
The firms revenue growth was also
diminished by a surge in the amount
of money it spent on marketing and
advertising this quarter.
The firm racked up a $4.3bn mar-
keting and sales bill, up from $3.7bn
in the quarter last year, reflecting a
trend by the worlds largest computer
firm to target more consumers and
eat into territory traditionally domi-
nated by arch rival Apple.
Microsoft said it has sold more than
60m Windows 8 licenses since
launch, a solid start for its latest oper-
ating system.
Microsoft shares fell slightly in
after-hours trading.
Microsoft Corp
27.4
27.2
27.6
27.0
27.8
28.0
28.2
$
27.63
24Jan
PRESIDENT Obama yesterday
nominated a politically
independent ex-New York
attorney as the next chair of the
Securities and Exchange
Commission (SEC), the US
financial watchdog that
monitors the countrys securities
markets.
Mary Jo White, currently head
of law firm Debevoise &
Plimptons litigation team, will
succeed Elisse Walter, who
stepped up last December when
Mary Schapiro stepped down.
White, who is married to the
Obama picks tough ex-New York
attorney as next chair of the SEC
BY ELIZABETH FOURNIER SECs former head of corporation
finance John White, was the first
female attorney for the southern
district of New York from 1993
to 2002, prosecuting high profile
cases including mafia boss John
Gotti and Ramzi Yousef, who was
behind the 1993 World Trade
Center bombing.
Though she has also defended
Wall Street bankers, including
former Bank of America chief
executive Ken Lewis, White is
seen as a tough cop, and will be
involved in implementing the
dozens of unfinished rules
required by the 2010 Dodd-Frank
Wall Street reform law.
3
NEWS
cityam.com
Mary Jo White is head of litigation at US law firm Debevoise & Plimpton
INSIDE TRACK: Page 8

LONDONS West End has leapfrogged
Hong Kong to regain its spot as the
worlds most expensive location to
rent office space after rents declined
in the Asian city.
Property specialists DTZs annual
Global Occupancy Costs survey pub-
lished today shows that occupiers in
Londons West End had to pay
US$23,500 (14,900) per workstation
per annum at the end of 2012, which
is more than three times the global
average.
These figures are a tangible reflec-
tion of the fact that London is a high-
ly attractive place to locate a
business, Richard Howard, head of
DTZ West End, said, although he
warned that prices in the West End
can still vary greatly.
While boutique specialist finan-
cial sector companies are happy to
pay a premium to be based in one of
the worlds premier business dis-
tricts, recent transactions involving
Google, Expedia, Skype, Facebook
and LinkedIn have all been at a con-
siderable discount to Mayfair prices,
reflecting the vibrancy of their dis-
tinctive locations, he added,
Facebook moved into larger 30,000
sq ft offices in Covent Garden last
year although the exact amount it
West End ranks
as the worlds
priciest offices
BY KASMIRA JEFFORD
The Walbrook Building opposite Cannon Street station is now just over 15 per cent let
4
NEWS
cityam.com
After a three-year wait ... the
Walbrook secures its first tenants
THE WALBROOK Building opposite
Cannon Street station has finally
clinched its first two tenants, nearly
three years since it was first built.
Property developer Minerva, said
it has secured the first deal with
insurance broker, Arthur J
Gallagher, which has taken offices
on the ground floor and the whole
of the seventh floor amounting to
just over 60,000 square feet (sq ft).
The company has signed a 15-
year lease and is paying a rent of
57.50 per sq ft.
BY KASMIRA JEFFORD
Minerva also announced that
Jones Lang LaSalle have signed a 12-
year lease on 10,500 sq ft of office
space on the eighth floor.
The property agent, which is
paying 60 per sq ft, will use the
office as its new City headquarters.
The Walbrook, designed by Foster
and Partners, comprises 445,000 sq
ft of office and retail space. It was
first completed in February 2010,
but has been empty ever since.
The two deals mean it is now just
over 15 per cent let.
The Citys EC2 postcode,
traditionally dominated by the
financial service sector firms, has
suffered from a lacklustre lettings
market as companies shelve plans
for new space amid job cuts and the
threat of a triple dip recession.
The main lettings over the past
year have come from a wave of
insurers looking for new offices
near the Lloyds of London building.
Minerva was bought in 2011 by a
consortium led by Jamie Ritblats
Delancey and private equity group
Area Property Partners. It also owns
the Citys St Botolph building which
recently signed insurer Jardine
Lloyd Thompson as a tenant.
TECHNOLOGY, media and
telecoms (TMT) firms are piling
into the City office market and
taking up some of the slack left by
a downsizing of financial services
companies.
Research by property experts
Colliers International shows in
2012 TMT firms accounted for 30
per cent of take-up in the City
market and 26 per cent in 2011,
with companies such as Expedia,
Tech and media demand for
office space soars in the City
BY KASMIRA JEFFORD Skype and Mind Candy moving to
areas such as Farringdon and
Clerkenwell. That compares to just
12 per cent in 2010 and 10 per cent
in 2009.
Simon Crotty, head of city office
at Colliers International said:
With take-up of the number of
financial services offices in the
City significantly down year on
year, businesses in the technology
and media sector are helping to
fill the void, with 835,232 square
feet taken during 2012.
5 MOST EXPENSIVE OFFICE LOCATIONS
1 London West End 23,500
2 Hong Kong 22,190
3 Geneva 17,560
4 Tokyo 17,280
5 Zurich 16,420
Location
Cost per work station
per annum (US$)
paid is not known.
In 2011, Londons West End lost its
top spot as the worlds least afford-
able district when Hong Kong
jumped from fourth to first place.
Karine Woodford, head of occupier
research at DTZ said Hong Kong has
once again been overtaken by London
after occupancy costs fell 12 per cent.
Overall in 2012, average global occu-
pancy costs increased by one per cent
to US$7,495 per workstation in 2012.
In Londons Square Mile, the cost
for companies to provide office space
for their workers increased 3.7 per
cent while in the UK overall, costs
increased by 1.6 per cent.
DTZ said City occupiers showed
subdued demand and remained
reluctant to move unless compelled
by factors outside of their control.
THE EUROZONE recession is
getting deeper in most countries,
with private sector output
plunging in France, Spains
unemployment soaring further and
Italian retail sales dropping again,
according to a raft of data
published yesterday.
But Germany is defying the
trend, with businesses reporting
strong growth in January, bouncing
back from a weak December and
raising hope that it could continue
to be a positive presence in the
blighted currency union.
Markits purchasing managers
index (PMI) for the Eurozone came
in at 48.2 in January, below the 50
level and so indicating another
Eurozone recession deepens
as output in France plunges
BY TIM WALLACE
contraction in private output.
That is an improvement on the
47.2 recorded in December, largely
because of a rebound in German
output its index jumped to 53.6.
But poor French performance
weighed on the total score, falling
to 42.7 indicating the fastest fall in
output since March 2009.
Meanwhile Spains
unemployment rose to 26 per cent
in the final quarter of 2012 and
youth unemployment reached a
new high of 60 per cent.
Italy saw its retail sales dip
another 0.4 per cent, official
figures showed, and Belgian
business confidence declined from
minus 11.8 to minus 13.2, an index
reading suggesting recession is on
the way.
5
NEWS
cityam.com
Empty offices look bleak now
but are also a sign of optimism
T
HE City is changing, and not
just because of the skyscrapers
about to reinvent its skyline.
The firms that are taking office
space are changing as well.
The trend for insurers to cluster in
EC3 around the Lloyds building is
well-established. Equally striking has
been the lack of demand in Cannon
Place and the Walbrook, in an area
associated with financial services.
The announcement of tenants at
the Walbrook is a relief, but it is too
soon to announce recovery. The
appearance of Cannon Place as a
fictional office location in the latest
series of TV crime drama Silent
Witness is a quiet reminder of the
lack of real occupants.
Meanwhile, not content with the
fast-growing digital development
hub around the Old Street
roundabout, technology firms are
finding the City itself an attractive
choice, according to research from
Colliers International. And in the
West End, even hedge funds must be
feeling the pinch as rents rocket to
the highest in the entire world.
Such trends are the inevitable
result of the post-crisis adjustment
in the City, and the changing face of
global demand. It has been a harsh
process for the commercial property
sector, but even the stalled
development of the Helter Skelter
tower that had cast a metaphorical
shadow over the City in recent years
seems to be moving again in 2013.
And empty offices are about vision
as well as failure. The Empire State
Building was empty at first, having
opened at the height of the Great
Depression. It eventually became
both profitable and an icon of its
city. The City is likely to opt out
from the new decision to allow
commercial office space to be
converted into housing, but it will
do so as an expression of faith that
office demand will return for the
firms who can ride out the slump.
BOTTOM
LINE
MARC SIDWELL

GERMANY
53.6
63% OPTIMISTIC
IPSOS MORI
PMI
BELGIUM
BUSINESS
CONFIDENCE
LEADING INDEX
SPAIN
26%
60%
YOUTH
GERMANY IS DEFYING THE RECESSION GRIPPING THE EUROZONE
EUROZONE
48.3 PMI
48.3
47.5
FRANCE
42.7 PMI
7% OPTIMISTIC
IPSOS MORI
-13.2
ITALY
0.4%
MANUFACTURING
SERVICES
UNEMPLOYMENT
RETAIL SALES
*A PMI below 50 indicates contraction
All PMI gures refer to January
FINANCE firms looking to sell
payment protection products in
future should take care to properly
identify their customers and check
the product does what the
customer thinks it does, the
Financial Services Authority (FSA)
and Office of Fair Trading (OFT) said
yesterday.
The new guidelines are intended
to explain to firms how they can
avoid misselling PPI in future
banks are expected to pay a total of
over 12bn in compensation to
customers who were wrongly sold
the product in recent years.
Banks must also make sure
customers can easily compare the
product on offer with other services
on the market, the OFT stressed.
Lawyers urged care in designing
the products in future.
Debt freeze or waiver products
will attract close scrutiny, says Bill
McCaffrey from CMS Cameron
McKenna. Creditors will have to
ensure that cover meets customer
needs and be transparent over price
matters that ought to be covered
in the creditors required pre-
contractual explanations to
customers. Regarding consumer
credit, particular care must be
taken in documenting the product,
considering whether the APR is
impacted and how best to advertise
within the scope of regulation.
New guidance
to stop future
PPI scandals
BY TIM WALLACE
EMAILS from Barclays former top
bosses including Bob Diamond were
passed to regulators as part of the
Libor fixing investigation, a court
revealed yesterday, after a bid by those
listed to remain anonymous failed.
A total of 106 staff and former
employees had wanted to go un-
named, including 25 people identified
in the regulatory filing.
Among those listed were ex-chief
executives Bob Diamond and John
Varley, former operations chief Jerry
Del Missier, current finance
director Chris Lucas and
investment bank boss
Rich Ricci. New York
fixed income boss
Harry Harrison, fixed
income global boss Eric
Bommensath, former
swaps trader Ryan
Reich and ex-trading
desk head Ritankar Pal
were also named.
It does not follow
that the peo-
p l e
Barclays staff
in Libor probe
named in court
BY TIM WALLACE
London Stock Exchange boosts
data business as trading dips
LONDON Stock Exchange (LSE)
managed to boost its profits in the
final three months of 2012, despite
low trading volumes hitting its
core capital markets business.
Income from fees on UK share
trades dropped by 13 per cent,
while earnings from post-trade
services such as clearing
slumped from 58m to 49.6m.
However total group income was
up six per cent on the same period
last year at 208.9m thanks to a
strong performance from the
stock exchanges data business.
The group has continued to
BY JAMES WATERSON
benefit from a more diversified
range of businesses with
particularly strong performances
from our information services and
our technology operations, said
chief executive Xavier Rolet.
Income from the data division
rose 44 per cent to 76m, largely
thanks to the integration of the
FTSE International business, which
maintains the famous stock market
indices. In December 2011 LSE paid
Financial Times publisher Pearson
450m for the 50 per cent of the
FTSE business it did not own.
LSE also said it was making
progress on its purchase of clearing
house LCH.Clearnet, with
regulators in UK, Portugal, Spain
and France backing the deal. Only
the Dutch authorities and the UKs
Financial Services Authority have
yet to give it the go-ahead.
London Stock Exchange Group PLC
1,170
1,180
1,190
1,200
1,210 p
1,205.00
24Jan
GERMAN lender Commerzbank
joined the flood of banks cutting
jobs yesterday, telling staff that
thousands will get the chop in its
latest round of cost cutting.
Up to 6,000 of its 56,000 staff will
go from the end of 2013.
Around three-quarters of its
total headcount work in Germany,
but London is one of its major
centres outside the banks home
country and staff in the City are
not expected to be spared from the
redundancies.
The bank, which has twice been
bailed out by the German taxpayer,
Commerzbank set to cut 6,000
jobs in its latest savings drive
BY TIM WALLACE
is going through a major shake up,
pulling out of areas like shipping
finance and commercial property
lending as it cuts back on capital-
intensive business lines.
And it is investing 2bn (1.7bn)
over the next three years to refocus
on areas like the private customer
business and its small and medium-
sized enterprise (SME) unit.
Commerzbank merged with
Dresdner Bank in 2008 and under
that agreement cannot cut any jobs
until the end of this year.
But negotiations will begin next
month on the number of staff who
will lose their jobs, and the terms
of the action.
6
NEWS
cityam.com
Chairman Martin Blessing is pushing through tough reforms at the bailed-out bank
ELECTRONIC trading firm Knight
Capital posted a dismal set of
figures yesterday, with an 84 per
cent drop in earnings and 16 per
cent decline in revenue.
The firm, which stood on the
brink of collapse last summer after
a trading glitch delivered a $460m
(291m) loss to the business, is
currently being taken over by rival
Getco in a $1.8bn deal.
Yesterday the firm, which uses
algorithmic programmes to trade,
said net income for the last three
months of 2012 fell to $6.5m, down
from $40.2m last year.
Revenues of $287.7m were also 16
per cent lower.
Chief executive Tom Joyce said:
Knight Capital suffers huge
profit loss after volume drop
BY MICHAEL BOW
The financial results for the
quarter were negatively impacted by
the steep year-over-year declines in
consolidated US equity volume and
market volatility as well as the
writedown of an investment and
heightened professional fees.
The company has felt the force of
declining fee volumes.
It said it traded an average of
41.2bn exchange-listed shares every
day in the fourth quarter, a drop
from 51bn in the same period in
2011.
But there were reasons for cheers
in its institutional sales and trading
division, which leapt to a $9.4m
profit in the quarter, compared
with a $17.1m loss in the previous
year.
Icap confirms probe over Libor
ICAP confirmed yesterday it was
being investigated by the
Financial Services Authority (FSA)
over Libor setting, making the
worlds largest broker the first
non-bank to confirm it has been
linked with the scandal over
fixing the lending rate.
As an inter-dealer broker, Icap
acts as an intermediary between
the world's largest investment
banks, many of which are
involved in setting the Libor rate.
Icap does not contribute to the
Libor setting process but
regulators have called into
question the role that individual
brokers, at Icap and rival firms,
may have played as conduits to
manipulation by traders working
at investment banks.
Icap said in a regulatory filing it
had been told by the FSA that one
of its subsidiaries was under
investigation.
The investigation is
confidential, accordingly no
further comment will be made at
this stage, the broker said in a
statement.
More than a dozen banks
around the world have been
scrutinised by regulators as part
of an investigation into the
suspected rigging of interbank
rates, which are used to price
trillions of dollars of financial
instruments.
Shares in Icap closed down 0.95
per cent at 324p yesterday, having
slumped as much as three per
cent in earlier trading.
ICAP PLC
315
310
320
325
330
335 p 324.00
24Jan
COFFEE chain Starbucks pleased
investors yesterday posting a rise in
earnings per share after releasing
results in line with Wall Streets
expectations.
The coffee brewer, which started
in 1971 in Seattle, posted net
revenue figures of $3.8bn (2.4bn),
up 11 per cent for the three months
ending December.
In the UK, the group said the
closure of underperforming stores
across the country, as well as the
sale of some airport stores to
licensees who license the
Starbucks grinds out revenue
increase but UK disappoints
BY MICHAEL BOW
Starbucks brand to run a coffee
shop had led to a decline in
revenues from company operated
stores. The firm does not break
down UK sales in its accounts but
posted a revenue figure of $306.1m
for Europe, Middle East and Africa,
a small one per cent increase
compared to last year. Starbucks
was slammed this year for its UK tax
affairs. It subsequently promised to
pay 20m to the UKs tax
authorities to make up for the lack
of payments.
The firm opened seven stores
across EMEA during the quarter,
versus 25 a year ago.
implicated in the regulatory finding
are personally implicated. Others are
simply those whose emails were hand-
ed over to the regulatory authorities,
said the judge, in a case which sees
Guardian Care Homes claim Barclays
missold an interest rate swap.
This started as an alleged misselling
case which the bank considers has no
merit. The addition of a claim based on
what happened with Libor does not
change the banks view, said Barclays.
Meanwhile new chief executive
Antony Jenkins vowed not to close
down the investment banking arm.
He is reviewing the banks opera-
tions in the wake of the scandal, and
is set to cut 2,000 investment bank
jobs. But that does not amount to
a scaling back of its ambitions, he
said: Barclays is a universal bank
today, it will continue to be a uni-
versal bank, and it will continue
to have very very significant,
large investment bank.
Ex-Barclays chief
Bob Diamond was
named in court
PUNCH TAVERNS boss Roger
Whiteside will give up happy hours
for elevenses when he becomes the
new chief executive of bakery chain
Greggs next month.
Whiteside, who has been a non-exec-
utive director at Greggs since 2008,
will succeed Ken McMeikan on 4
February, the firm said yesterday.
McMeikan, who drove the govern-
ment to retreat on controversial pasty
tax rises last year, is leaving the firm
to take over at catering wholesaler
Brakes Group.
Greggs chairman Derek Netherton
said Whiteside had been involved in
developing group strategy in what has
been a period of signifi-
cant change.
He is very well
respected within the
company and his
appointment will
enable a smooth tran-
sition in what is still a
challenging consumer
environment, he said.
The popular
chain suffered
a 2.9 per
cent drop
in like-for-
like sales
Boss at Punch
trades pints for
Greggs pasties
BY KASMIRA JEFFORD
over Christmas, blaming bad weather
conditions, and challenges facing the
high street.
As a result it has scaled back its
expansion plans in favour of refurbish-
ing existing stores in a bid to reverse
falling sales.
Greggs shares rose one per cent yes-
terday on news of the appointment,
which was welcomed by analysts.
[Whiteside] brings with him signifi-
cant experience that should be rele-
vant to Greggs, having worked at
businesses that have seen growth as
well as faced significant challenges,
said Sanjay Vidyarthi at Espirito Santo.
The 54-year-old was one of the found-
ing team of Ocado in 2000 before mov-
ing to become chief executive of
Threshers, where he led a turnaround
of the off-licence chain. Prior to that
he spent 20 years at M&S.
Allison Kirkby, finance chief at
media production firm Shine will
take over from Whiteside as non-
executive director.
Punch, whose shares fell more than
two per cent yesterday, has made its
chairman, Stephen Billingham,
executive chairman while the
pub operator restructures
its business.
Wandisco leads the way for UK technology flotations
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8
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cityam.com
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W
e have already seen the likes
of Luxfer, Edwards and
Manchester United list in
New York when they might
have been expected to grace the
London flotation markets. Now there
are rumblings that Intelligent
Energy, a clean energy technology,
might look overseas for a listing if it
chooses to go for one. And my fellow
columnist Mark Kleinman reported
yesterday how Global Switch, the
data centre operator founded by the
Reuben brothers, might list just as
easily in New York or Singapore than
London.
Intelligent Energy is a growing com-
pany that appears to be going places.
Recently it appointed Bank of
America Merrill Lynch to advise it on
a private placing and the suggestion
is that it could float sometime.
Although based in Loughborough, its
management team is said to be wary
of the London market, fearing it
might give it a lowish rating. So, just
as with other industrial technology
companies, like Luxfer and Edwards,
it might well follow a path to the US.
Fleetmatics, an Irish GPS fleet track-
ing company recently floated in New
York and Wonga, the pay-day lender,
is threatening to list on the wrong
side of the Atlantic as far as the
London Stock Exchange is concerned.
Certainly at the higher value end,
Londons IPO market is in a sorry
state. At least housebuilder Crest
Nicholsons intention to float,
announced earlier this week, provid-
ed a fillip but more is needed to
restore the market to anything like its
former health.
Says David Vaughan, IPO leader at
Ernst & Young: In 2007 London was
doing plenty of IPOs a year with a
market capitalisation of 50m or
more and in the last three years we
havent even got into double figures.
Statistics show that in 2007, there
were 46 main market deals, raising
$33.2bn, whereas last year there were
eight deals that raised just $4.3bn.
Some new issue investors have been
mugged by a series of poorly perform-
ing issues from the likes of Ocado,
Betfair, Perform and now Bumi. These
investors view private equity sellers as
too greedy.
There are signs at the lower capital-
isation end of the market of increas-
ing activity, however, with Liberums
Steven Tredget hearing that investors
are looking at an increasing number
of situations.
There have already been a number
of flotations recently where partici-
pating investors appear to be sitting
pretty. These include Panmure
Gordons float of Wandisco, a
provider of global collaboration soft-
ware, whose shares were issued at
180p last June and now trade at 548p.
Another Panmure deal, Fusionex, a
Malaysian software group, issued
shares at 150p each in December that
now trade at near 250p.
Says Panmures veteran banker Alan
Pollock: Our view is that if you show
people a good company with the
right prospects and good manage-
ment, there will be strong demand
for it, especially if it is an entrepre-
neur rather than a private equity
group selling out. Pollock says recent
deals have attracted the likes of M&G,
Aviva and Blackrock, investors that
need to come back onside to get the
main market going again.
david.hellier@cityam.com
AG BARR, the maker of soft drinks
Irn Bru, Tizer and Rubicon,
yesterday said it expected to have
outperformed the soft drinks
market in its final quarter despite
a summer of bad weather.
The company, which is awaiting
approval from the Office of Fair
Trading on its merger with rival
Britvic, anticipates total sales in
the final quarter to be over five
per cent ahead of the prior year.
Irn Bru maker AG Barr expects
revenue growth as merger nears
KASMIRA JEFFORD Full year revenues are expected
to be around 253m, reflecting a
year-on-year growth of around
seven per cent.
Despite very poor summer
weather and a competitive market
place, all of our core brands grew
in the year, AG Barr said.
The group, which is building a
new warehouse and production
site at Milton Keynes for future
expansion, said production at the
site is on track to start this
summer.
Punchs outgoing chief
Roger Whiteside
BUDGET airline EasyJets push to
attract more cost-conscious business
travellers has helped the firm deliver
a 9.2 per cent rise in quarterly rev-
enues to 833m.
Passenger numbers rose 6.2 per cent
to 13.7m while revenues per seat
jumped 3.9 per cent to an average of
53.87 in the final three months of
2012, the firm said in a statement
yesterday.
The low-cost carrier picked up cus-
tomers from rivals, who cut their win-
ter capacity by 800,000 seats, and on
new flights to Switzerland and
France.
EasyJet also kept a close watch on its
expenses, which coupled with mild
weather in the period meant the cost
per seat rose by just 0.5 per cent,
excluding fuel.
The firm said it expects to report
pre-tax losses of 50m to 75m in the
first half of the year, better than its
previous forecast of 100m.
EasyJet has made a strong start to
the year due to a combination of man-
agement action, competitor capacity
reductions and the benign operating
environment, said chief executive
Carolyn McCall.
The firm said it planned to increase
capacity by a prudent three to five
per cent, in a nod to largest sharehold-
er Sir Stelios Haji-Ioannous concerns
about the pace of expansion.
EasyJets shares closed up 5.1 per
cent at 898.5p a record high.
EasyJet set to
narrow losses
as traffic rises
BY MARION DAKERS
INVESTMENT manager St Jamess
Place yesterday reported a substan-
tial hike in fourth-quarter sales, as
wealthy customers regained confi-
dence in the economy.
Investor sentiment is up, chief
executive David Bellamy told City
A.M. People are settling down and
adjusting to the new normal
interest rates will stay low. Theyve
got to get on with their lives.
We seem to be winning some sig-
nificant businesses from some of
the more traditional wealth man-
agers and banks who have, frankly,
lost it with some of their clients,
Bellamy added.
New business hit 223.8m in the
last three months of 2012, up 46 per
cent on the same period last year.
St Jamess Place sells investment
products via its in-house chain of
financial advisers, with more than
1,700 people now working for the
company on this basis.
Bellamy says many of the newly
recruited advisers are former City
professionals in their late 30s who
want a second career but his com-
St Jamess Place
up as investors
gain confidence
BY JAMES WATERSON
pany is also attractive to independ-
ent financial advisers (IFAs) who
want the security of working for a
large business.
Whats coming out of the 2008/09
period is more invasive regulation,
greater compensation levies. If
youre a small IFA you may not be
sure you can keep up with all this
regulation, he said.
There was no update on specula-
tion surrounding Lloyds Banking
Groups 60 per cent stake in St
Jamess Place, despite reports that
the bank is looking to offload its
interest.
Total funds under management
grew by a fifth to reach 34.8bn.
Carolyn McCall has helped EasyJet attract business travellers
St. James's Place PLC PLC
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450
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462.50
24Jan
9
NEWS
cityam.com
Revenue was strong; average revenue per seat at constant currency
+8% driven by tight industry capacity and the nal quarter of the switch from
a credit card charge to a higher admin fee. Lack of disruption would have
helped prot before tax.
ANALYST VIEWS
The share price has been cruising to new altitudes of late and this
update provides further vindication. The strong increase in revenue, improved
load factors and largely booked advanced seats have all contributed to
what will likely be a much lower loss at the halfway stage.
First half guidance for both revenues and costs has improved and the
company expects interim losses to be in the range of 50m to 75m... Overall, a
very strong interim management statement which demonstrates
EasyJets revenues per seat continue to grow strongly.
WHAT DO YOU MAKE OF

EASYJETS UPDATE?
By Marion Dakers
PETER HYDE LIBERUM
RICHARD HUNTER HARGREAVES LANSDOWN
GERT ZONNEVELD PANMURE GORDON

IN BRIEF
Japan logs record trade deficit
nJapan logged a record annual trade
deficit in 2012 as exports extended a
slide in December, signalling that Prime
Minister Shinzo Abes efforts to weaken
the yen have been slow to gain
traction. Despite polls suggesting
Japanese manufacturing sentiment is
improving, the 2012 trade gap of 6.93
trillion ($78.27bn) and a seventh
consecutive monthly drop in exports
show that has yet to translate into hard
economic data.
Italys Monti criticised over banks
nItalian Prime Minister Mario Monti
said yesterday he would be prepared to
recall parliament to report on the
troubled Banca Monte dei Paschi di
Siena but rejected suggestions that
authorities had failed in their oversight
functions. Its an issue which is really
without any substance, but the
government is nonetheless ready to
address parliament on it, he said at
the World Economic Forum in Davos.
Bad loans up at Spanish lenders
nSpanish banks Bankinter and
Sabadell both reported rising bad
loans yesterday. Mid-sized Bankinter
warned its bad loans could hit five per
cent of total loans this year, up from
4.28 per cent at the end of 2012.
Barcelona-based Sabadell,
meanwhile, said its bad loan ratio
jumped to 9.33 per cent of total loans
at the end of December from 8.46 per
cent in September.
RETAIL sales growth slowed this
month, a leading business survey
showed yesterday, although the fig-
ures were still slightly better than
downbeat shops had feared.
For the first two weeks of the year 41
per cent of retailers reported rising
sales compared with the same period
of last year, the Confederation of
British Industrys (CBI) study found.
At the same time 24 per cent saw
sales drop, leaving a positive net bal-
ance of 17 per cent. That is down on
the 19 per cent in December and 33
per cent in November, showing a slow-
down in shops fortunes.
But despite the slower pace, sales
still rose to almost exactly the level
deemed normal for the time of year
an improvement on the below-aver-
age figures recorded for the whole of
2012. By sector, non-store sales
which include online and mail-
order rose most strongly, with a net
balance of 70 per cent of retailers
reporting growth.
Christmas sales
growth fizzles
out in January
BY TIM WALLACE Furniture and carpets retailers fol-
lowed closely with a balance of 64 per
cent seeing sales rise, and grocers with
a balance of 43 per cent. Chemists per-
formed worst, with a net balance of 56
per cent reporting falling sales.
The problem that retailers face is
that consumers purchasing power
has come under some renewed pres-
sure from a move back up in inflation
and muted earnings growth, said IHS
Global Insights Howard Archer.
Still strong employment growth
offers hope for consumer spending,
but it is questionable whether this can
continue.
Bank lending to firms plunges
again despite government aid
GOVERNMENT schemes to boost
lending to companies have failed to
turn around the firms deleveraging
since the crisis, according to
industry figures out yesterday.
Net lending to non-financial
firms plunged by 3.5bn in
December, even faster than the
3.1bn fall in November and the
biggest dip since June, the British
Bankers Association (BBA) revealed.
The decline is almost double the
BY TIM WALLACE
1.54bn average decline over the last
six months and takes the stock of
outstanding bank debt to 288.1bn.
That drop comes despite the
efforts of the Treasury and the bank
of Englands Funding for Lending
Scheme (FLS) which gives cheap
funding to banks on the basis that
they lend it to households and firms.
The programme has been running
since August, though the Bank of
England maintains it will take some
time for the funding to pass through
the system into actual credit
provided to customers.
Mortgage lending expanded, but
only very slowly.
Loans for home purchase grew by
0.6bn in December, well above the
0.1bn average expansion seen in the
past six months. But that still leaves
mortgage loans outstanding at
777.4bn, well below pre-crisis levels.
Consumer credit also edged up
0.3bn in the month, but that is
likely to be associated with
Christmas borrowing rather than
long-term growth.
Retail sales growth slowed this month
2012 2013
0
10
-30
-20
-10
20
30
40
5.0 %firms, netbalance
RECENT retail administrations
could lead to a doubling of store
closures on Britains high streets,
according to a report from the
Local Data Company (LDC).
The latest monthly figures from
the LDC show that the shop
vacancy rate decreased for a third
month in a row by 0.06 per cent to
14.25 per cent in December 2012.
LDC director Matthew
Hopkinson said the number of
vacant shops declined slightly in
December because of retailers
using empty space to open pop up
UK faces record vacancy rates
in 2013 as administrations rise
BY KASMIRA JEFFORD
shops to attract shoppers in the
run-up to Christmas.
Despite the fall in vacancy rates
last month, Hopkinson warned the
number of vacant shops is likely to
rise as the likes of Blockbuster,
HMV and Jessops fall by the
wayside. In light of recent
administrations and the number
of distressed retailers being
quoted I fear that we will see a rise
in the number of vacant shops as
we enter 2013, he said.
The LDC said in 2013 as many as
1,400 stores will close as retailers
scale back their estate and further
brands fall into administration.
10
NEWS
cityam.com
The Local Data Company said the number of store closures could double in 2013
EXPLORER EnQuest yesterday
unveiled a nine-year retail bond
paying 5.5 per cent, becoming the
first oil company to launch the
product.
The bonds, which will mature
on 15 February 2022, have a
minimum initial subscription
amount of 2,000.
They will also be admitted to the
London Stock Exchanges Order
Book for Retail Bonds.
The bond issue comes just a day
after the FTSE 250-listed oil
explorer acquired an eight per
EnQuest becomes first oil firm
to launch retail bond on LSE
BY CATHY ADAMS
cent stake in the Alba field in the
North Sea.
EnQuest chief executive Amjad
Bseisu yesterday hailed the
companys entrance onto the
market.
The bond will allow the
company to diversify its funding
base and extend the tenor of its
borrowings and will complement
our already strong balance sheet,
he added.
Yesterday City A.M. revealed
that retail bonds providers are
lobbying for them to be included
in the governments Financial
Services Compensation Scheme.
F
ACEBOOKS recently opened
London base is the type of
relaxed environment the
average undergraduate must
dream of entering the workforce in
skateboards strewn across the floor,
boardgames stacked on top of each
other, and oddly-shaped sofas rather
than stiff office chairs.
However, ambitious students
fantasising about being the next
Mark Zuckerberg will have to
meet an unusually strict list of
requirements even to apply for an
internship at the social network-
ing company.
An advert placed on
Facebook yesterday inviting
applications from business
students for a 12 week sales
internship at its Covent Garden hub
asks budding Facebookers for two to
four years of work experience, prefer-
ably in strategy consulting, sales oper-
ations or business development and
for superior PowerPoint and Excel
modelling skills.
The application process for the job
made through Facebooks web-
site certainly differs from the
Harvard University alcohol-
fuelled hacking marathons
Zuckerberg is rumoured to
have used to recruit some of
Facebooks first interns.
It appears that the successful
applicant will be richly rewarded,
however. According to one recruit-
ment website, Facebook interns
in the US are paid on average
$5,602 (3,550) a month,
which equates to a salary of a
whopping $67,000.
Mark Zuckerbergs recruiting
methods have changed slightly
Presumably giddy with success,
Bertrand de Mazieres became an
unexpected talking point at Wednesday
evenings IFR banking awards by slipping
over on the podium as he came up to
accept his honour for becoming Issuer of
the Year. Despite being warned of the
slippery floor surface ahead of the
presentations, the waistcoated director
general of the European Investment Bank
lost his feet entirely, knocking over the
lectern and a couple of glasses in the
process.
Luckily for him and his colleague, De
Mazieres recovered his composure to
receive his award from actor Stephen
Mangan, who congratulated him for
avoiding hospital.
Bank of the Year was BNP Paribas, which
did what was expected of it by the
hundreds of bankers present. As is
traditional, the winning bank bid the
highest amount for the tombstone
auction, hosted by TV presenters Natasha
Kaplinsky and Jonny Gould, helping to
raise funds for Save the
Children. Its
350,000 helped
bring the grand
total to 1.054m.
More than one
thousand bankers
then danced the
night away in the
Grosvenor Houses
ballroom.
THE ART of the official apology is
a difficult one to master (see:
Tescos hit the hay tweet and
Nick Cleggs video mea culpa), and
rail operators are not known for
their human warmth when trains
break or go missing.
So The Capitalist is heartened to
hear of C2Cs act of contrition,
which came in the form of free
mini eggs and chocolate buttons.
C2C sent teams wearing bright
pink hairshirts to Fenchurch
Street, Limehouse and West Ham
stations to apologise for delays
caused by a broken down train last
Thursday. Commuters took the
treats in good cheer particularly
those who werent even on the
delayed services last week.
C2C sent a sorry squad to hand out mini eggs and chocolate buttons to disgruntled customers
Sorry seems to be the sweetest
word for some C2C commuters
Tough demands
put on next lot
of Zuckerbergs
13
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cityam.com/the-capitalist
THECAPITALIST
CALLY SQUIRES IS AWAY
Got A Story? Email
thecapitalist@cityam.com
The EIBs Bertrand
de Mazieres
LADBROKES made its first
acquisition under chief executive
Richard Glynn yesterday, with the
30m (25m) purchase of Irish
exchange-betting website Betdaq.
The move will expand the
bookies online offering, which has
struggled to gain a foothold in the
internet betting market, a
weakness rivals such as William
Hill have exploited.
The deal follows abandoned
attempts to buy online operators
Sportingbet which William Hill
recently agreed a 485m deal to
buy and 888.com.
Betdaq operates an exchange
system, in which customers can
both back and lay bet against
an outcome, with the odds
adjusting according to what bets
are placed.
The exchange system is also
employed by Betfair, which is many
times bigger than Betdaq,
although analysts highlighted the
opportunity for the smaller firm to
compete if Ladbrokes gives it the
right investment.
Betdaq is currently owned by
Irish billionaire Dermot Desmond.
The deal, which Ladbrokes
expects to complete next month, is
half in cash with the remainder in
company shares.
Ladbrokes bets
on online rally
in Betdaq deal
BY JAMES TITCOMB
NOKIA returned to profit in the final
quarter of 2012, as sales of its Lumia
smartphones finally picked up.
However, the Finnish company said
it would not be paying a dividend for
the first time in over 20 years, as it
struggles to preserve its cash pile.
Following a cost-cutting plan that
saw tens of thousands of jobs go,
Nokia reached a quarterly profit of
375m (317m). This followed six suc-
cessive quarters of losses that
reached 1bn at times.
Nokia, which was overtaken by
Samsung as the worlds biggest
mobile phone maker by handsets
sold after 14 years at the top, has
struggled to establish itself among
the elite smartphone manufacturers.
It abandoned development of its
own Symbian software in favour of
Microsofts Windows Phone operat-
ing system two years ago, but has
failed to see meaningful sales of its
Lumia smartphones until now.
As announced earlier in the
month, the company sold 4.4m
Nokia hangs up
on dividend to
preserve cash
BY JAMES TITCOMB
Lumias in the quarter less than a
tenth of the 47.8m iPhones Apple
sold, but an encouraging improve-
ment for Nokia.
Sales of its cheaper Asha phones
also impressed, while a turnaround
in Nokia Siemens Networks, its net-
work equipment joint venture with
Siemens, boosted the figures.
Shares in Nokia, which had doubled
in value since July to hit a nine-
month high, fell by 5.5 per cent on
news of the dividend being abolished.
The annual dividend cost the firm
750m last year, around a sixth of its
4.4bn cash pile.
Michael Turner, the executive chair of Fullers, is eyeing further investments this year
Nokia
3.20
3.10
3.30
3.40
3.50
3.60
3.70
3.30
24Jan
CUSTOMERS flocked to Fullers
pubs over Christmas, as the
landlord and brewer reported a
4.5 per cent like-for-like sales rise
during the festive period in its
core business.
After declining sales for much
of the year, improved trading in
the nine weeks to 19 January has
pushed Fullers to a 2.6 per cent
rise in like-for-like sales for its
managed pubs and hotels division
in the 42 weeks of the current
Fullers improves at Christmas
after watered-down summer
BY JAMES TITCOMB financial year.
Fullers, which owns nearly 400
establishments mainly in the
south east, including Square Mile
favourites The Counting House
and The Swan, had blamed the wet
weather during the summer for a
decline in revenues earlier in the
financial year.
The company is pursuing
acquisition opportunities, but
managing director Simon Emeny
said: No matter how much money
we invest I would hope for better
weather more than anything.
14
NEWS
cityam.com
Margin caution from Jaguar
Land Rover hits Tata Motors
JAGUAR Land Rovers (JLR)
runaway profit growth could hit
a speed bump in the next
quarter, the firm said yesterday
in an announcement that sent
parent firm Tata Motors shares
down as much as ten per cent.
British carmaker JLR said that
while revenues rose in the last
three months of 2012, its profit
margin is likely to be slightly
lower than in the previous two
quarters.
Earnings are likely to be flat
on the prior six months.
The firm blamed currency
movements and the new,
cheaper Evoque model taking up
a larger portion of overall sales.
Nevertheless, JLR said it plans
to stick to its capital expenditure
programme, splashing out 2bn
on research, development and
BY MARION DAKERS
other projects in fiscal 2013 as
the company tries to capitalise on
its soaring growth rate in new
markets.
Free cash flow for the three
months to the end of December
2012 is set to be negative as a
result of this spending drive.
JLR last week posted record
global sales figures for 2012,
selling 357,773 vehicles in the
year, a rise of 71 per cent.
The firm has said it will report
its full results for the final
quarter of 2012 some time in
February.
Mumbai-
traded
shares
of Tata Motors, which hit an all-
time high earlier this month,
were knocked yesterday by the
surprisingly cautious outlook
from its star performer JLR.
Given that adverse currency
movement and a weak product
mix led by Evoque are the
primary factors driving down
margins, the pain may spill over
to FY14, Mumbai-based financial
services firm IDFC said in a report.
HYUNDAI Motor Cos
quarterly sales were dented by
the strength of the Korean won,
the firm said yesterday. The six
per cent profit decline to 1.89
trillion won (1.12bn) came
even as Hyundai sold a
record 1.23m vehicles in
the fourth quarter.
IN BRIEF
Sony fined over PlayStation hack
n Sony has been fined by the UKs
data protection watchdog over a
security lapse that led to millions of
PlayStation users personal details,
including credit card information,
being compromised. The Information
Commissioners Office (ICO) fined the
Japanese electronics giant 250,000
and Sony said it would appeal the
judgement. The ICO said the incident,
which happened in 2011, would not
have happened if appropriate
security measures were in place.
Carphone Warehouse cheers
n Carphone Warehouse, Europes
biggest independent mobile phone
retailer, beat sales growth forecasts,
with strong demand for smartphones
and tablets in the UK more than
offsetting weakness in France.
Despite beating sales forecasts the
firm said it would not be changing
earnings guidance as it had invested
in margins to drive revenue. Sales at
stores open over a year rose 7.8 per
cent in the final three months of last
year, with UK sales up 16 per cent.
Online shopping spurs PayPoint
n Credit card processing company
PayPoint yesterday said increasing
internet transactions led it to a four
per cent rise in revenues year-on-
year for the three months to January.
The firm, whose customers include
Sainsburys Local, Asda and the Co-
op, processed 193m transactions
during the period, up five per cent on
last year. The rise in internet
shopping over the Christmas period
meant an 18 per cent leap in online
transactions.
Jaguars record sales pace may
come at the expense of margins
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IN BRIEF
Chemring profit tumbles 42pc
nDefence equipment manufacturer
Chemring said yesterday that pre-tax
profit sank 42 per cent over the year
to October, in a difficult 12 months
that saw profit warnings and failed
takeover talks. The company, which
makes defence equipment such as
flares and explosive device detectors,
said underlying pre-tax profit fell to
70.1m, down from 120.2m over the
same period in 2011. Revenue edged
up two per cent to 740.3m.
London Mining beats targets
nLondon Mining yesterday hailed
better-than-expected output over
2012, as it continued to ramp up
operations at its Marampa mine in
Sierra Leone. The iron ore miner
posted full-year production of 1.63m
wet metric tonnes, which beat targets
set last January. Over the fourth
quarter, production at the flagship
West African mine hit 546,000 wet
metric tonnes, up 46 per cent on the
previous quarter.
Oz consortium for Balfour Beatty
nInfrastructure group Balfour Beatty
has formed a consortium with
Transfield Services to target
government contracts to maintain
highways on the east coast of
Australia. London-listed Balfour has
joined forces with the Australian
company to win state outsourced
contracts which would include
maintaining services such as street
lighting, bridges, drain clearing and
road and footway resurfacing.
ENGINEERING group Invensys yester-
day forecast an improved perform-
ance this year, as it was boosted by
solid trading in its rail business.
The FTSE 250-listed firm, which
makes control systems for nuclear
power stations, industry, railways
and domestic appliances, said overall
performance in the three months
from 20 September had continued in
line with the first half.
Subject to any significant changes
to the global macroeconomic envi-
ronment, we continue to believe that
we will improve our performance for
the year as a whole, it said in a trad-
ing update.
Revenue improved at the Invensys
Rail business which the firm
agreed to sell to Siemens in a 1.7bn
deal in November during the quar-
ter, thanks to the start of several
large contracts won last year.
Operating profit in this division was
ahead of the same quarter in 2011,
the company said.
Rail boost for
Invensys ahead
of strong year
BY CATHY ADAMS
The engineer reiterated yesterday
that the completion of its rail dispos-
al to Germanys Siemens will take
place in the second quarter of this
year. Following the green-light
from shareholders, banks and
the UK Pension Regulator, it is still
waiting for approval from anti-trust
regulators.
The disposal of the rail business is
a very good deal for shareholders,
crystallising value and de-risking the
remaining business with the pension
agreement, analysts at N+1 Singer
said yesterday.
Bumi leadership war heats up
as crucial meeting gets closer
THE BOARD of Bumi yesterday said
it was confident it can retain
control of the troubled coal miner
at the general meeting next month.
It is understood that chief
executive Nick Von Schirnding has
spoken to many of Bumis top
shareholders, and as a result is
confident of a victory over Bumi co-
founder Nat Rothschild when they
go head to head at next months
general meeting.
However, Bumi has not yet
gained any public support from
shareholders, whereas Rothschild
has secured the support of four
BY CATHY ADAMS
named shareholders.
Financier Rothschild called for a
general meeting earlier this month
to overhaul the board including
the ousting of chief executive
Von Schirnding and
chairman Samin Tan
and put himself back at
the head of the company.
Wallace King, proposed
by Nat Rothschild as the
new Bumi chairman,
said in an interview:
We met with a
number of investors
in London. They can
see the issues. They
want to go forward
on a positive basis. In pretty much
all of the interviews Id say the body
language was quite positive.
So far, Rothschild has won
support from Schroders Richard
Buxton, Taube Hodson Stonex, John
Duffield at Brompton Asset
Management and Sofaer Capital
for his proposal.
The general meeting the exact
date of which is expected to be
confirmed next week will
decide who will lead the
coal miner going
forward.
Invensys PLC
337.5
340.0
342.5
345.0
347.5 p
345.50
24Jan
A NEW London airport in the
Thames Estuary would need up to
30bn in public subsidy to make it
viable, a report commissioned by
MPs warned yesterday.
The commercial value of any
newly built airport is likely to be
significantly lower than the 20bn
to 50bn it would cost to build,
consultancy Oxera said in a report
for the transport select committee,
adding that a private investor
would not take on the project
Boris Island airport plan would
need billions in public subsidy
BY MARION DAKERS
without huge taxpayer support.
These figures do not include
billions of pounds in compensation
needed to convince airlines to
move from Heathrow to a new hub.
By comparison, Oxera said it
would cost between 14.3bn and
20.8bn to add at least one runway
to all three existing major London
airports.
The study cast doubt on the
Thames Estuary plan, dubbed Boris
Island after the Mayor came out in
support of the idea, noting that it
would be less well-connected than
Heathrow or other airports.
16
NEWS
cityam.com
The Thames Estuary airport, designed by Foster + Partners, would need state support
HURRICANE Sandy has wiped
$15m (9.5m) from transport
company FirstGroups operating
profits this year, but the firm said
yesterday it had otherwise traded
as expected in the final quarter of
2012.
First, which operates Greyhound
coaches and school bus services in
the United States and Canada, said
the storms that battered Americas
east coast in October had affected
its business in 130 towns and cities.
Closer to home, Firsts UK bus
unit posted like-for-like passenger
revenues up 2.1 per cent in the
quarter, slightly lower than its 2.6
per cent pace of growth earlier in
the year.
Hurricane Sandy knocks profit
at rail and bus firm First Group
BY MARION DAKERS
Asset sales are going as planned,
as the firm tries to reposition itself
following cuts to public subsidies
on some routes.
Firsts rail business saw like-for-
like revenues rise 8.1 per cent. The
FTSE 250 company is waiting for
the government to decide whether
and when to restart the rail
franchise competitions, which
were frozen in October, before it
makes a decision on this years
dividend.
While there is significant work
still to do, we are satisfied with the
progress of the actions taken so
far, though we remain cautious in
respect of continued economic
weakness, said chief executive Tim
OToole. Shares closed up 6.15 per
cent yesterday at 203.8p.
Nick Von Schirnding was
promoted in December
AT&T sees its losses narrow as
subscriber rise trumps forecasts
AT&Ts revenue rose faster than expected in the
fourth quarter as it added more subscribers. It
made a fourth quarter loss of $3.86bn (2.5bn) or
68 cents per share, compared with a loss of
$6.68bn or $1.12 per share in the year-ago quarter
when it took big charges. Revenue rose to
$32.58bn from $32.5bn and compared with Wall
Street expectations for $32.2bn.
3M reports solid results as sales
of its products begin to pick up
DIVERSIFIED US manufacturer 3M yesterday
reported a 3.9 per cent rise in profit, on solid
growth in sales of its wide array of products, which
range from Post-It notes to films used in television
screens. The company said that fourth-quarter
profit came to $991m or $1.41 per share, compared
with $954m, or $1.35 per share, a year earlier. The
results are in line with forecasts.
United Continental sees losses
widen as higher costs take a toll
UNITED Continental yesterday posted a bigger
fourth-quarter loss, hobbled by higher costs, lower
revenue and charges. The worlds largest carrier
said the quarterly net loss widened to $620m, or
$1.87 a share, from $138m, or 42 cents a share, a
year earlier. Revenue fell 2.5 per cent to $8.7bn. It
took charges of $430m in the quarter, with much of
that tied to paying off pension debt.
Xeroxs results in line with Wall
St forecasts despite flat revenue
XEROX yesterday reported fourth-quarter revenue
in line with expectations. The company said revenue
was flat at $5.9bn and earnings per share, excluding
items, were 30 cents. Analysts looked for revenue of
$5.88bn, according to Thomson Reuters.
In the fourth quarter of 2012 Xerox, which is trying
to shift its printer company image, started a
restructuring programme focused on its services.
Bristol-Myers Squibb is hurt by
drug competition from rival firms
BRISTOL-MYERS Squibb reported better-than-
expected quarterly results yesterday, but scaled
back its 2013 earnings forecast following setbacks
for several of its experimental drugs. The company
expects earnings this year of $1.78 to $1.88 per share
before special items. That would represent a decline
of as much as 11 per cent from 2012, mainly because
of generic competition for its drugs.
Slow market recovery for Stanley
Black & Decker hits profit hopes
TOOL maker Stanley Black & Decker yesterday
forecast a 2013 profit below analysts estimates
warning of a slow recovery in its markets. The firm
expects to earn between $5.40 (3.40) and $5.65
per share for 2013. Stanley Black said net income
from continuing operations for the fourth quarter
fell to $130.5m, or 79 cents per share, from
$153.3m, or 92 cents per share, a year earlier.
Lockheed Martin is confident on
2013 despite fourth quarter blow
LOCKHEED Martin, the Pentagons biggest supplier,
yesterday reported a 19 per cent drop in earnings per
share to $1.73 for the fourth quarter from $2.14 a year
earlier, reflecting one-off costs including a large non-
cash pension adjustment. Excluding these, Lockheed
earned $1.91 per share, beating expectations.
Lockheed said it expected earnings per share to rise
to between $8.80 and $9.10 in 2013.
US CORPORATE RESULTS
ROUND UP
17
cityam.com
LONDONREPORT
Vestra Wealth Management
Heinz Schmid has been
appointed fixed income
strategist in the wealth
management firms investment
team. He joins from Investec, and
was previously head of UK fixed
income at BNP Paribas. Schmid
has also managed HSBC
Investment Managements
sterling fixed income team, and
held a number of roles at UBS.
Centrus Advisors
Geoff Knight has been appointed partner at the treasury,
debt advisory and corporate finance partnership. He joins
from RBC Capital Markets, where he was managing director
and head of corporate debt capital markets. Knight has
particular experience in the corporate and infrastructure
financing markets.
Pramerica Real Estate
The property investment firm has appointed Philip Barrett
as chief risk officer for Europe and Asia. He joined in 1999
and has been a managing director for the firms European
real estate investment platform. In addition, Raimondo
Amabile and Andrew Radkiewicz have been appointed co-
heads of Pramericas European business.
Hamilton Lane
The private equity asset management firm has appointed
Paul Waller as a partner in its London office. He recently
retired after 35 years at 3i, where he was managing
director, with special responsibility for investor relations
and fundraising.
Westhouse Securities
The corporate broking group has appointed Dragan Trajkov
as an analyst in its oil and gas research team. He joins from
Renaissance Capital, where he was a research analyst
covering Africa and Middle East oil and gas companies.
Trajkov began his career at Genuity Capital Markets, and
has also held roles at Salman Partners.
Barclays
Eleanor Cox has been appointed associate director in the
banks charities team. She joins from RBS, where she
worked with a portfolio of technology, media and telecoms
clients. Cox will work alongside David McHattie, head of
charities, corporate banking at Barclays.
Russell Investments
The asset management firm has appointed Sjef Pieters as
head of Nordics. He joins from SAIL Advisors, where he was
senior vice president responsible for sales in Europe.
Pieters was also previously head of Lyxor Benelux at
Societe Generale, and a principal at Barclays Investors.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
Wall St inches
higher despite
Apples plunge
T
HE smallest of gains gave the
Standard & Poors 500 its
seventh straight winning day
yesterday, but the index failed to
hold above the 1,500 line, restrained
by Apples worst day in more than
four years. Apple slid 12.4 per cent to
$450.50 a day after it posted revenue
that missed Wall Streets forecast as
iPhone sales were poorer than
expected.
The sharp drop wiped out nearly
$60bn in Apples market capitalisation
to less than $423bn, leaving the com-
pany vulnerable to losing its status as
the most valuable US company to sec-
ond-place ExxonMobil, at $416.5bn.
The S&P 500, however, managed to
hit its longest winning streak since
October 2006. The market has sent
the message it is no longer driven by
the whims of Apple, said Ken Polcari,
director of the NYSE floor division at
O'Neil Securities.
The S&P 500 briefly traded above
1,500 for the first time since 12
December 2007, but failed to hold
above it, indicating that momentum is
waning and a pullback is in the charts.
If the market had a little bit more
excitement to it, momentum players
would have jumped after it broke
through 1,500. Investors know the
market is a little bit ahead of itself,
Polcari said.
Economic data helped buoy equities
as US factory activity grew the most in
nearly two years in January and new
claims for jobless benefits dropped to a
five-year low last week, giving surpris-
ingly strong signals on the economy's
pulse. At the same time, Chinese man-
ufacturing grew this month at the
fastest pace in about two years, while
data suggesting German growth
picked up boosted hopes for a
Eurozone recovery. PMI in Asia,
Europe, and obviously, here in the
United States, is moving in the right
direction, and thats stuff people
should be excited about, Polcari said.
The Dow Jones industrial average
rose 46 points or 0.33 per cent, to
13,825.33 at the close. The S&P 500
inched up just 0.01 of a point, or 0 per
cent, to finish at 1,494.82. The Nasdaq
Composite dropped 23.29 points or
0.74 per cent, to end at 3,130.38, with
most of that loss on Apples slide.
The broader Russell 2000 index also
hit a milestone as it closed above 900
points for the first time.
Video streaming service Netflix sur-
prised Wall Street with a quarterly
profit after it added nearly 4m cus-
tomers in the United States and
abroad. Netflix shares surged 42.2 per
cent to $146.86, its biggest percentage
jump ever.
Earnings have helped drive the stock
markets recent rally. Thomson
Reuters data through early yesterday
showed that of the 133 S&P 500 compa-
nies that have reported earnings so far,
66.9 per cent have exceeded expecta-
tions above the 65 per cent average
over the past four quarters. In total
6.8bn shares changed hands on the
New York Stock Exchange, the Nasdaq
and NYSE MKT.
B
RITAINS top share index rallied on
yesterday, outperforming its global
peers and extending its best start to
the year since 1989, boosted by
strong global economic data and deal
chatter for heavyweight Vodafone.
The FTSE 100 surged 62.27 points, or 1.1
per cent, to 6,264.91 points, a level not seen
since May 2008, taking its gains since the
start of the year to 6.2 per cent, equal to its
yearly gain in 2012.
Buying momentum on the FTSE has been
building since the index climbed above its
2011 high at 6,100 earlier this week, push-
ing investors who were selling UK shares
short to close their positions.
Short sellers borrow securities with a
view to selling them and buying them
back at a lower price before returning
them to the lender.
Since the FTSE went above 6,100 there
has been a lot of short covering, a senior
trader said.
Plus you get the move out fixed income
into equities, a serious attempt for once.
Recent fundflows data showed investors
were piling into shares as yields on sover-
eign bonds were dampened by central
banks debt purchases and concerns about
a Eurozone break-up receded.
The yield on UK shares is 9.8 per cent
higher than that offered by Britains 10-
year government bond, Thomson Reuters
Datastream data shows, meaning UK
stocks offered a higher risk premium than
its Eurozone and US peers.
The FTSE 100 has outpaced a five per cent
rise for the US S&P 500 and a 3.3 per cent
rise for the Euro STOXX 50 since the start
of this year.
Vodafone was the single biggest contrib-
utor to the FTSE yesterday, adding 10 index
points as it rose 3.2 per cent, its biggest
daily rise since August, in volume one and
half time its 90-day average.
Traders cited talk that Vodafone may sell
its stake in Verizon Wireless to Verizon as
the main reason behind the rally.
John Keith, a senior research associate at
Sanford Bernstein, said this would be the
ideal time for Vodafone to sell the assets,
given Verizon Wirelesss current high
valuation.
But he cautioned Verizon was unlikely to
make an offer any time soon.
If you look at the trajectory where
Vodafone is going, with European markets
getting weaker, then perhaps it would
make sense for Verizon to wait a little bit
longer, Keith said.
We dont expect a bid soon although
there is likely to be a lot of noise around
the idea.
The speculation was triggered by com-
ments from widely-followed hedge fund
manager David Einhorn, who said he has
added to his Vodafone position, arguing
that the market undervalues the clearly
quite valuable stake in Verizon.
Stronger-than-expected data from the US
and top-metal consumer China also fuelled
the FTSE rally, boosting stocks that depend
on economic activity, such as miners and
construction material companies .
Building materials group CRH was the
top FTSE gainer, up 5.3 per cent to 1,314p,
with a trader saying buyers piled into the
stock after it broke its recent high at
around 1,300p.
Manufacturing in China and the US, the
worlds two largest economies, grew at the
fastest pace in about two years in January,
providing tentative signs that the world
economy may be gaining traction after a
sluggish 2012.
Fredrik Nerbrand, global head of asset
allocation at HSBC, said a string of recent,
positive economic data out of China and
the US, as well as receding risks of a euro
zone collapse, have led him to reduce the
probability of below-trend global growth
and inflation.
New Year rally continues as FTSE
surges again and short sellers exit
BESTof theBROKERS
Darty PLC
18Jan 21Jan 22Jan 23Jan 24Jan
p 66
64
63
65
62
63.75
24 Jan
DARTY
UBS has slashed its rating on the electrical goods retailer formerly
known as Kesa from buy to neutral, citing an increasingly
competitive French electricals market. Darty requires an improvement
in French profits above and beyond the cost savings we have factored
in, the bank says, despite increasing the target price on the stock from
a previous 60p, to 65p.
FTSE
6,275
6,250
6,225
6,200
6,150
6,175
6,264.91
24 Jan
DASHBOARD CITY
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
NEW YORK
REPORT
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
in association with
AVEVA Group PLC
p 2,220
2,180
2,160
2,200
2,140
2,200.00
24 Jan
AVEVA
Panmure Gordon becomes the latest broker to cast its eye over software
firm Aveva, citing a tepid amelioration in the macro outlook and the
companys new product named E3D and improving sentiment to
China. It concludes: In time E3D sales could translate gushing
comment into a snip of an upgrade, maybe as early as quarter four. Until
then a hold feels about right. Panmure gives a target price of 1,900p.
WH Smith PLC
p 670
650
640
660
630
620
655.00
24 Jan
WH SMITH
The stationery retailer, which reported strong margins in an update this
week, has had its target price upgraded to 725p by Numis, which
maintains its add rating on the stock. There is little the company can
do to reverse the effect of lower high street footfall on its like-for-likes,
but the detailed strategy package and policy of retiring equity continues
to deliver earnings per share growth of more than 10 per cent, it said.
D
AVID Camerons promised
referendum on Europe will
be the first in my lifetime,
which began the year after
the 1975 vote to remain in
the Common Market. So to me the
Prime Ministers new commitment
for a vote feels like both a victory and
a defeat. It is a historic decision: after
more than four decades (the vote still
wont happen until after 2015), the
British public will issue a verdict on
its relationship with the EU. It is also
a national embarrassment: our
democratic deficit is so vast that our
elected elites have not dared to put
their decisions on Europe to the vote
since the fall of Saigon.
And Britain is hardly alone. One of
the main rallying cries of those
A
BOUT two years ago, as a
member of the Monetary
Policy Committee, I used the
title of the classic 1970s
Genesis album Selling England
by the Pound to draw attention to the
way in which the weakness of sterling
was pushing up our inflation rate.
Between mid-2007 and early 2009,
sterling depreciated by over 25 per cent
the biggest fall in its external value
over a short period of time since we left
the Gold Standard in 1931. The pound
remained weak through 2010 and 2011,
and recovered somewhat in 2012. This
modest rise in our currency helped to
reinforce the decline in the inflation
rate we saw over the course of last year.
But sterling is now falling again and
there is a danger that this renewed
decline will continue and push infla-
tion higher this year.
Why has sterling weakened recently?
Three main factors appear to be at
work. First, as the euro crisis took hold
in late 2011 and 2012, sterling benefited
from a safe haven effect attracting
short-term flows of finance looking for
a more stable home outside the
cityam.com/forum
Over the past five
years, UK inflation has
averaged 3.5 per cent
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.
18
ANDREW SENTANCE
Official policy of debasing sterling
is selling off England by the pound
Eurozone. With signs that the euro situ-
ation may be stabilising, these safe
haven currency flows are reversing
with the pound falling below 1.20 last
week for the first time since last March.
Second, the UK has seen weak growth
and relatively high inflation over the
recovery so far. This contributes to the
view in financial markets that we are
likely to see a similar pattern in the
future and that UK economic funda-
mentals are not very healthy.
Third, and most crucially, a weak
pound appears to be an important
ingredient of official economic policy.
Government ministers, including the
chancellor, have talked of rebalancing
the economy and emphasised the role
of a competitive currency in achieving
this. The governor of the Bank of
England has argued along the same
lines. In his major speech earlier this
week, he said that the 25 per cent fall in
the value of the pound was certainly
necessary for a full rebalancing of our
economy.
Unfortunately, this is a flawed policy.
The thinking behind it is that a compet-
itive pound will spur exporters into
action and pave the way for an export-
led recovery. But exporters in a mature
industrialised economy like the UK do
not respond to short-term currency
movements in this way.
British exports are also not highly
price-sensitive. Within manufacturing,
our main exports are high value-added
products which sell on the basis of qual-
ity and technology. Services exports
with the possible exception of tourism
also rely mainly on the professional-
ism, high quality and new ideas that UK
firms can offer relative to competitors.
Exporters need much stronger long-
term reasons than a temporary price
advantage to expand into new export
markets. They need the confidence that
there will be a sustainable demand for
their products and services which will
underpin profitable growth.
In addition, the experience of UK
exporters from the past has been that
currency depreciations can be quickly
reversed. The depreciation of sterling in
1992-3 following the UKs exit from the
European Exchange Rate Mechanism
was wiped out four years later when
the pound appreciated again in 1996-7.
It is not surprising that export-led
growth has not materialised. But what
we have seen very clearly in response to
a weakened pound has been a pro-
longed period of high inflation. Over
the past five years, UK inflation has
averaged around 3.5 per cent compared
to the 2 per cent target. The excess infla-
tion of 1.5 per cent per year has been a
severe drag on consumer spending and
growth in the UK economy.
If we are to avoid a continuation of
this consumer squeeze, the UK govern-
ment and the Bank of England should
stop talking down sterling and avoid
actions like repeated rounds of quan-
titative easing which weaken our cur-
rency on the foreign exchanges. We
should recognise that a strong currency
and a strong economy generally go
hand in hand. Previous attempts by the
UK to devalue our way out of economic
problems starting in 1967 and contin-
uing through the 1970s and into the
1980s did not work.
In his speech welcoming the deprecia-
tion of the pound, Sir Mervyn King also
noted that currency wars in which
countries seek to out-devalue each
other are a recipe for economic tur-
moil and conflict. He is right. What we
need to do is apply this insight to our
own currency. A stronger pound could
have benefits for the UK economy eas-
ing the upward pressure on inflation
and supporting the growth of con-
sumer spending. We should stop
Selling England by the Pound.
Andrew Sentance is senior economic adviser
at PwC, and a former member of the Bank of
Englands Monetary Policy Committee.
disaffected with the EU is its tenuous
link to democratic accountability.
And even as we celebrate the
promise of a vote some have waited a
lifetime to make, our leaders are
jetting off to party with the powerful
in Davos, a glittering bubble of
groupthink for the globes self-
segregating, self-congratulatory elite.
Camerons Tories came to power
waving the metaphorical banner of
localism. It was never the sort of full-
blooded commitment laid out in
Daniel Hannan and Douglas
Carswells 2008 manifesto The Plan,
or evangelised in Michael Portillos
2010 documentary Power to the
People, but Camerons strategists
had at least heard of those trends
and pillaged a few of the less
shocking initiatives.
The results have been meagre.
Elected mayors, apart from in
London, have not excited the
popular imagination, with nine out
of 10 cities voting against the
proposal in 2012. Elected police
commissioner elections were
scheduled for the worst possible
time last November, resulting in
record low turnouts. Regulatory
tinkering to support favoured causes
means businesses must study every
move at the Treasury and the
Department for Business, Innovation
and Skills. Quantitative easing from
the Bank of England has kept all eyes
on Sir Mervyn King and the MPC.
The truth is, Cameron has shown
little concern for the consent of the
governed. His trademark policy, the
big society, is about intruding
government into civic voluntarism,
not limiting state power. He has
created a nudge unit to make us
make the decisions Number 10
decides are right. He believes he can
always pick a winner, whether
through a national industrial policy
or by supporting green energy
development.
It was always a mistake to imagine
such a man could lead us to greater
self-government. Even his decision to
offer this long-delayed referendum is
less to do with trusting the people
and more to do with political
calculation: an attempt to bring his
party back under control while
ensuring the verdict he wants. But
his decision has offered the rest of us
a glimmer of hope. While we wait for
Camerons plan to play out, this vote
should be a signal to reinvigorate
direct democracy as a popular cause.
Its not just Brussels we need to
renegotiate our relationship with,
but Westminster as well.
Mark Sidwell is managing editor of
City A.M.
THE LONG
VIEW
MARC SIDWELL
Brussels and Westminster both fail to offer the public direct democracy
In association with
CITY BO
19
No renegotiation
[Re: Camerons decision to call a
referendum is absolutely right,
yesterday]
There is no guarantee of any referendum,
even in the event that David Cameron is
re-elected. Francois Hollande is adamant
that powers stay at EU level, and he is
backed by legal precedent. EU
institutions, like the European Council,
are also legally bound to work towards an
ever-closer union both economically
and politically so our only choice looks
like a straight in/out. The Prime Minister
may be returned to power in 2015, but
what if the myriad of technical
discussions takes forever, and theres no
agreement to hold a referendum over?
Brian Mooney
Politics of Europe
[Re: Conservative unity on Europe will
break open deep Labour fractures,
yesterday]
Yes, Labour should and must (if it wants
to win power) offer a referendum. But the
question is: what sort? David Cameron
has suggested a reform-or-out choice.
Perhaps theres space for an alternative.
But on the question of Tory unity, Andrew
Lilico is over-optimistic. Tory Europhiles
have not emerged from the woodwork,
and the Lib Dems have mostly been
keeping their mouths shut. Both of these
groups would put EU conformity over any
UK self-interest. Weve heard an awful lot
from Tory Eurosceptics, but the fightback
is coming. And its coming soon.
David Smuts
T
HE coalition received bad
news this week, as figures
revealed the UK added
15.4bn to its debt pile in
December 2012 up from
14.8bn in the same month in 2011.
The chancellor will now be forced to
ask ministers to prepare further cuts
for 2014-15. But the problem is not
just fiscal. Its political. The coalition
is extending a culture of dependency
on the state, with damaging
implications for Britains long-term
finances.
Nowhere is this clearer than in its
pension reform. A new single-tier pen-
sion paying out a flat rate of 144 a
week will merge the basic pension
and the earnings-related secondary
pension. Its been posed as a cheaper,
simpler means of providing a reason-
able retirement income to all. And it
may save the Treasury some money.
But theres trouble in the detail.
Working people will have to make
national insurance contributions
(NICs) for at least 35 years. But those
who take time off for a series of rea-
sons deemed admissable by the state
will have a fantasy NIC credit
made by the taxpayer. They will then
be viewed as having paid their full
contribution, and officially moved
onto the flat 144. Women, we are
told, will be winners; so will the low-
paid and self-employed.
But someone must pay for this. The
usual creative accounting will not do,
despite projections in the pensions
White Paper. As another White Paper
(this time the blueprint for the wel-
fare state) put it, the only affordable
way to fund benefits over a long peri-
od is if theyre paid for by the NICs of
working people in times of earnings,
with co-payments made by employers
and the state. The assumption must
be that every household has one
breadwinner (a working spouse
would pay for the non-working). It
After Apple reported disappointing profits
and sales, is it doomed to relative decline?
YES
Apples latest results were spectacularly good by any standard
except their own. The company has been hyped up so far, and for so
long, that failing to meet expectations was almost inevitable. But
the real problem for Apple is that now the top has been called, the
markets are looking to justify their new-found scepticism. Every
future statement will be picked over for signs of weakness. If prices
are raised, Apple will be accused of abusing its powerful position; if
lowered, they are scrambling to retain market share. Too many
products will mean the company has lost focus; too few and Apples
executives are resting on their laurels. All this negative publicity will
be overstated, but it affects the way customers behave, so has a self-
fulfilling quality. The bottom line is that Apples share price will
never fully recover. It has lost its mojo, and it wont get it back.
Julian Birkinshaw is professor of strategy and entrepreneurship at
London Business School.
Julian Birkinshaw
NO
Dominic Sunnebo
Apple is far from finished. Although its recent results disappointed,
iPad and iPad Mini sales were good. Apple still has a big future. It is
excellent at creating strong brand loyalty a powerful resource that
its competitors struggle to emulate. There is no doubt that if, as
expected, Apple released a TV, it would see mega sales because its
customers are linked into its mature and developed ecosystem
another strength. Importantly, consumers perceive that the App
Store is superior to its competitors, and that is a huge barrier to
Android. Although there are more Android devices on the market,
Apple customers are more likely to actually spend money
downloading applications. And in terms of profits and development,
Apple is way ahead. Its shares may have fallen from their peak, but
they still represent an incredible buying opportunity.
Dominic Sunnebo is global consumer insight director at Kantar
Worldpanel.
may sound unrealistic. But its a sim-
ple principle that should underpin
the systems affordability.
The problem is that incentives to
earn and save are dampened when
those who do not work can be as
wealthy as those who do. As Lord
Beveridge (the designing hand behind
the welfare state) explained, the only
affordable way to provide benefits is
for non-workers to receive a lower,
subsistence, amount.
And the new pension plan ignores
this. Unfortunately, its nothing new.
The reform is one example of a series
of damaging changes to the welfare
state, pursued by successive govern-
ments. It began in the 1940s, when
Clement Attlee played politics with
welfare to pay out pensions without
the recipients meeting full contribu-
tory conditions. The actuarily-based
fund to pay for this failed to materi-
alise. Then, in the 1960s and 1970s, as
the number of workless households
expanded, the state invented a variety
of cash payments from the public
purse to support workless house-
holds. The trend was set. The taxpayer
became paymaster, with politicians
agreeable facilitators.
Today, the principle of benefits in
return for contributions has been
turned on its head. Those who have
paid their way find themselves rela-
tively penalised. And while most
rightly want to help the destitute or
struggling, its not feasible or desir-
able for the taxpayer to take the place
of the breadwinner.
Sheila Lawlor is director of Politeia.
SHEILA LAWLOR
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NUS
With no queues, it
s a more
rewarding experience using
London City Airport.
visit cityjet.com
Nick Clegg is throwing his toys out of the
pram on an EU referendum. The Lib Dems
will get a drubbing in 2015.
@benhowlettcf
If the rest of Europe block renegotiation,
they should know where Britain would head.
Out the EU.
@mgharfalkar
Im more concerned about David Cameron
making wrong claims about the national
debt than anything the IMF says.
@philritchie
George Osborne in Davos: We have a
credible and flexible debt reduction plan.
Even as debt goes up.
@labourpress
BEST OF TWITTER
LETTERSto the editor
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E: theforum@cityam.com | Comment: cityam.com/forum | @cityamforum
Incentive to work
will be dampened
by pension reform
21
PROPERTY
Top schools fuel house price hike
Developments in
Wimbledon and
North London prove
a hit with families
A
GOOD EDUCATION can cost
parents more than just
tuition fees. Trends show that
top performing schools drive
house prices in their local
neighbourhoods by nearly a third
more than the national average.
Little wonder, then, that developers
are constructing luxury schemes in
these sought-after areas.
Wimbledon Hill Park is going down
well with parents keen to enroll chil-
dren in independent schools like
Kings College, Wimbledon High and
Wimbledon Chase primary school.
The development offers eight tradi-
tional and contemporary executive
family homes, with prices starting
from 3.5m.
Fifteen minutes south of the river
is Riverside Quarter, a new develop-
ment in Wandsworth, which offers
121 two to four bedroom apartments
at prices starting from 500,000. The
100m development is a big draw for
buyers looking to be near high-per-
forming schools like Putney High,
Emanuel School and Graveney,
despite the premiums.
In the south east, prices near top
schools are 37 per cent higher than
neighbouring areas and north
London is another location that has
seen prices rise in response to the
strongly performing schools in the
area. Homes near Henrietta Barnett
School, for example, trade at a premi-
um of 394,282, a huge hike on the
prices of properties in neighbouring
areas. This could be because exter-
nal influences on house prices here
are much stronger and high popula-
tion density means theres more
competition for homes in London,
even without the lure of living near a
top primary school, says Prime
Locations Nigel Lewis.
On the whole, London has experi-
enced this trend noticeably less than
other regions. Homes near good
schools in the capital are, on average,
only 7.4 per cent more expensive, the
lowest such premium in the UK over-
all.
According to a report by Lloyds TSB
house prices in the postcodes of the
30 state schools with the highest
2011 GCSE results in the country
were 33,631 higher than average, or
12 per cent higher than prices in
neighbouring locations. That
amounts to house premiums nearly
three times the average annual pri-
vate school fee of 11,422. Overall,
the typical price of a home in the
postal districts of Englands best
state schools is 303,902, nearly a
third higher than the average house
price across England of 236,321.
Outside London, developers contin-
ue to build schemes aimed at ambi-
tious parents. Less than half an
hours drive from Harrow sits the
Kings Island development, home to
Peterborough and St. Margarets
School. The gated island community
is comprised of 24 three and four-
bedroom conversion and new-build
family homes, as well as 127 one and
two bedroom conversion and new
build apartments and penthouses.
Prices go from 201,995 to 669,995
for properties on the development,
which is located on the former
William King Flour Mill site.
Meanwhile the Grand Union Canal
and River Colne border the property,
which is situated amidst the
Middlesex countryside and
Uxbridge.
Regionally, the north west has the
largest premium, with houses in
postal districts of the top ten state
schools trading at an average of 28
per cent, or 43,437 above the aver-
age house price in the county. In sec-
ond place is the north, with house
prices near the top schools at close to
a fifth higher than their county aver-
age.
At the same time, districts for top
schools in the south west trade
homes at a 16 per cent discount com-
pared to neighbouring locations,
such districts in the East Midlands
trade at a six per cent discount.
Amelia Brust
The charming
green
surroundings in
the Kings Island
development
The exterior of the
popular Riverside
Quarter
development in
Wandsworth
Homes in the
Wimbledon Hill
Park are particularly
highly sought after
cityam.com
Scan Here For More Info
* = 47,500 for a 25% share of the full market value of 190,000
for a 1 bedroom home.
Contracts to be exchanged within 4 weeks and complete
before 22nd March 2013.
Images of Millennium Horizon exterior and of the show apartment.
Uic=iag ac=!
T: 020 8357 4444
E: sales@nhhg.org.uk
www.nhhg.org.uk/millennium
MillenniumCityAM2013
Millennium Horizon apartments are a collection
of contemporary one and two bedroom
apartments in the heart of Canning Town. The
apartments offer modern specications, a host of
eco features, with some apartments beneting
from views of the City including the Millennium
Dome. Owning your own home in 2013 at
this stunning development is now possible
with the help of the Governments part-buy,
part-rent Shared Ownership scheme. Prices
start from as little as 47,500 for a 25% share.*
APARTMENTS
TIRED OF
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NEW
BEDROOM
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OWN YOUR OWN HOME IN 2013
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on completion for all buyers who
reserve before 31st January 2013.
For more details please speak to a
Sales Consultant.
22 PROPERTY FOCUS ON
CURRENT MORTGAGE DEALS Source: MoneySupermarket.com
Lender Fixed/Flexible Rate Until APR Maximum Loan
(per cent) (per cent) to Value (per cent)
Barclays Flexible 2.39 March 2015 3.8 70
Yorkshire BS Flexible 2.44 March 2015 4.6 75
Norwich & Peterborough BS Flexible 2.49 2 Years 4.7 75
ING Direct Flexible 2.49 2 Years 4.7 60
Virgin Money Flexible 2.55 April 2015 4.5 70
Yorkshire BS Fixed 1.99 March 2015 4.6 60
HSBC Fixed 1.99 March 2015 3.8 60
Santander Fixed 2.24 March 2015 4.5 60
Yorkshire BS Fixed 2.69 March 2016 4.5 75
KIDBROOKE PARK
ROAD, SE3
Price: 319,950
This two-bedroom ground floor
conversion flat is situated in a
semi-detached Victorian house
within walking distance of the
Village. Both bedrooms are
doubles, the reception space is
ideal for entertaining and the
property also comes with a
large communal garden.
Contact Jones Lang LaSalle at
joneslanglasalle.co.uk or
020 324 6921
FOCUS ON: BLACKHEATH
POND ROAD, SE3
Price: 3.95m
Located in the highly sought
after Cator Estate, this property
comes with seven large bed-
rooms, three bathrooms, an
underground gym and wine
cellar. The grounds are equally
impressive. After driving
through electric gates, guests
are greeted with landscaped
gardens.
Contact John Payne at john-
payne.com or 020 3324 7815
Named after the grassland that separates it
from Greenwich and Lewisham, Blackheath
is often described as one of the few
remaining villages in the heart of London.
Many refer to it as south east Londons
answer to Hampstead because of its
charming, green surroundings and
bustling village. While it does not have an
underground station, it has good National
Rail services, so London Bridge and Cannon
Street can be accessed within 30 minutes
and Lewisham DLR station is close by,
creating easy links to Canary Wharf and
making it a popular area for professionals.
Blackheath has always been very popular
but the legacy of the Olympics has helped
to generate an increased amount of
interest in the area with so many people
flocking here last summer, says Foxtons
sales manager Mark Ruffell. There really
is something for everyone here; from the
beautiful green open spaces to the many
boutique shops and restaurants, some
outstanding schools and enough trendy
bars to sate the appetites of young
professionals.
NEED TO KNOW | AREA INSIGHT
LOCAL AREA
|
PRICES
SOURCE: HOME
Detached Semi-Detached Terraced Flats
1.7m 888,734 501,742 288,997
Discovery Dock West, South Quay Plaza E14
1,200,000leasehold
A magnifcent 12th foor 3 bedroom, 3 bathroom apartment with an un-demised
terrace boasting commanding views of the dock & Canary Wharf. Discovery Dock West
is well located only 250m from Canary Wharf underground station.
EPC Rating C
Neutron Tower, Blackwall Way E14
725 per week
A stunning penthouse apartment with 2 bedrooms, 2 bathrooms & a large reception room
leading onto a balcony. Te apartment ofers sweeping views of the Canary Wharf skyline
incorporating the River, O2, Canary Wharf & the City.
EPC Rating C
Canary Wharf & Docklands
020 7510 8300
sales.canarywharf@chestertonhumberts.com
Canary Wharf & Docklands
020 7510 8310
lettings.canarywharf@chestertonhumberts.com
Queen Elizabeth Street, Tower Bridge SE1
420,000 leasehold
A 1 bedroom, 2nd foor apartment set in this iconic Piers Gough designed building.
Te property lies within the heart of Shad Tames & has a balcony & allocated secure
parking. Te building benefts from a 24hr porter & access to a gym.
EPC rating D
Alaska Building, Grange Road SE1
675 per week
A split level 2 bedroom warehouse conversion set within a stunning Art Deco development.
Located within close proximity to excellent transport links to the City & Canary Wharf this
development also benefts from superb communal areas including a south facing rooftop, &
24hr security.
EPC rating F
Tower Bridge & City
020 7357 7999
sales.towerbridge@chestertonhumberts.com
Tower Bridge & City
020 7357 6911
lettings.towerbridge@chestertonhumberts.com
chestertonhumberts.com
75 Ofces 5 Continents 11 Countries
Russia Italy France Spain South Africa Australia Singapore
UAE Barbados Gibraltar United Kingdom
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cityam.com
LIFE&STYLE PROPERTY
THE PAGODA, SE3
Price: 3.5m
While this property has a country feeling, its within easy commute of the City and Canary Wharf. The 6,000 sq ft building,
which was once occupied by Queen Caroline, wife of George IV, boasts 7-bedrooms, four bathrooms and a third of an acre of
gardens. Contact Kershaws at kershaws.eu or 020 8297 2922
MORDEN ROAD, SE3
Price: 1.3m
This property is ideal for those after a home
that boasts period features with a modern
twist. It is Grade II listed and located on the
Cator Estate but has a modern, well-
equipped kitchen and dining room area. It
has three large bedrooms with plenty natu-
ral light and the property spreads over four
floors. Blackheath station is nearby. Contact
Your Move Premier on your-move.co.uk
LEE TERRACE, SE3
Price: 900,000
This three-bedroom maisonette is ideal for someone after a
historically rich home. It boasts impressive high ceilings, a
grand and spacious reception room and benefits from having a
communal and private entrance behind a gated driveway. The
master bedroom comes with an en-suite bathroom. Contact
Foxtons on foxtons.co.uk or 020 7973 2020
LANGTON WAY, SE3
Price: 1.3m
Located a short distance
from the hub of restau-
rants in the Village, this
house comes with four
double bedrooms that all
come with fitted
wardrobes. The property
also features hard wood
floors, a study, guest
cloakroom and land-
scaped gardens. Contact
Foxtons on foxtons.co.uk
or 020 7973 2020
RESTELL CLOSE, SE3
Price: 400,000
While the majority of properties in the area are either houses or flat conversions, many new luxury apart-
ments are now available too. This one is located on the 6th floor in a sophisticated block adjacent to
Greenwich Park. It has two bedrooms and benefits from a 24-hour concierge and access to a roof terrace.
Contact acorn.ltd.uk or 020 3324 6405
LISKEGARD GARDENS, SE3
Price: 1.99m
This five-bedroom semi-detached property is one of many new developments in the area, designed
to blend in with the Victorian style common in the area. It offers an open plan kitchen, dining area
and off-street parking and is within easy reach of both Greenwich Park and Blackheath station.
Contact Jones Lang LaSalle at joneslanglasalle.co.uk or 020 324 6921
Our vision
for your future
Proud to be a member of the Berkeley Group of companies
www.roman-house.co.uk
Roman House - the epitome of Boutique City Living
New Show Apartment now open
Nestled beside the Barbican and just moments from the nightlife, Michelin starred restaurants and
culture of the Square Mile. The Residences at Roman House boast boutique style interiors, 24-hour
concierge, gym and access to the beautiful St Alphage Gardens.
Call: 020 7920 9920 or email: romanhouse@berkeleygroup.co.uk
Luxury Studios, 1, 2 & 3 bedroom residences from 565,000
Roman House, Wood Street, London, EC2Y 5BA
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Royal Borough of Greenwich
CityPoint SE9
Contact us to book your appointment to view - call 020 8150 5151
2 and 3 bedroom apartments from 305,000
3 bedroom Mews Houses from 430,000
Sales & Marketing Suite and Show Apartments now open daily 10am to 6pm (Thursdays until 8pm)
Kidbrooke Village Sales and Marketing Suite, Weigall Road (off Kidbrooke Park Road) London SE3 9YY
Final release of 2 and 3 bedroom apartments,
available for immediate occupation
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City Point at Kidbrooke Village offers stylish apartments with a concierge and residents gym, in a
beautiful green setting in the Royal Borough of Greenwich, only moments from Blackheath Village.
Further benefits will include sports facilities, shops, bars, restaurants, schools, healthcare, a hotel
and a new transport hub, with train journey times to London Bridge of only 15 minutes*.
Kidbrooke Village. A new village for London.
As part of Kidbrooke Village,
the OneSpace Youth and
Community Group has
facilities for sports, internet
access and community events.
Our Vision. Your Future.
In the last ve years,
The Berkeley Group has
invested 260 million in the
facilities communities need.
Proud to be a member of the
Berkeley Group of companies
www.kidbrookevillage.co.uk
Appointed agent: Delivered in proud partnership with:
Call now to make your
appointment to view
0844 488 1652
lindenhomes.co.uk/salters
BERMONDSEY
SE1 3AA
Studios, 1 & 2 bedroom apartments
and 2 & 3 bedroom houses
from 249,995
- ln the heart o ashionable 8eruondsey
- ^ short walk
*
rou Shad 1haues and London 8ridqe tube
- Soue with winter Cardens, rivate balconies or terraces
- Suerior secication
Listance is aroxiuate. Price correct at tiue o qoinq to ress.
J UST 6 HOMES REMAI NI NG
WINNER 2012 What House Awards 8est Larqe Pousebuilder Building Awards Pousebuilder o the Year
28
cityam.com
Having correctly called
the market last year, we
are sticking our neck out
again this year. Despite
the general consensus
that there will be little
growth in London in
2013, we are of the
opinion that the lack of
supply and continued
demand for property
from abroad and at home
are even more
pronounced, so eight per
cent growth in Central
and South West London
should be realised.
However, we foresee
lower growth in prime
central areas, but this
will be balanced by
stronger growth in
family markets like
Southfields and
Hammersmith where
prices can be expected
to rise by as much as 10
per cent.
There will be growth in London in 2013, particularly in family markets as a result of a lack of supply and continued demand for property
DOUGLAS & GORDON AVERAGE LONDON SALES PRICE INDEX
Q4 2011 Q1 2012 Q2 2012 Q3 2012
1 bed flat 387,500 404,167 408,333 410,833
2 bed flat 579,583 608,333 620,833 634,167
3 bed house 1,277,083 1,340,000 1,367,917 1,369,167
4 bed house 1,933,333 2,006,250 2,025,000 2,110,833
Supply
500
400
300
200
100
0
Jan JunJul AugSepOct NovDec FebMar Apr May
2010 2011 2012
July 2010
high(448)
Dec 2006
low(127)
Supply & Demand
Jan Jun Jul Aug Sep Oct Nov Dec Feb Mar Apr May
1600
1400
1200
1000
800
600
400
200
0
Demand 2012
Demand 2011
Supply 2012
Supply 2011
1200
1000
800
600
400
200
0
Demand
Jan JunJul AugSepOct NovDec FebMar Apr May
2010 2011 2012
Jan2012
high(1029)
Dec 2011
low(211)
LONDON
BAROMETER
ED MEAD DIRECTOR OF DOUGLAS & GORDON
PROPERTY PROPERTY OF THE MONTH
L
OCATED IN the picturesque
Surrey countryside is this
unique property tucked away
behind the private gates of the
highly sought after Wentworth
Estate. The location is known for
being the home of the
internationally renowned
Wentworth Club with its
exclusive facilities and
world famous golf course,
and the property is equally
impressive.
Set on approximately
four acres of land, guests
driving up to the property
from its private gate are
greeted with impressive
landscaped gardens
bordered by a sprawling
woodland encompassing
pool area and a large
double garage.
The house boasts five
substantial bedrooms. The
master bedroom comes
with access to a roof
terrace and all five feature dressing
rooms, en-suite bathrooms and
walk in wardrobes, making it ideal
for accommodating large families.
The property also features a bright
dining room and a contemporary
kitchen, along with a utility and
cloakroom located on the ground
floor.
A spacious reception with
impressive high ceilings can also
be found on the ground floor, with
direct access and views of the
gardens, while the second
reception room sits adjacent to the
conservatory, allowing for plenty of
natural light. Both rooms are vast,
providing the perfect space to
entertain guests.
The estate is close to the nearby
amenities of Virginia Water and
Egham and is within easy reach of
the M3 and M25 routes into
London and the south. The nearest
station is Longcross, which offers
direct access to London Waterloo in
under 50 minutes.
For more information contact Foxtons
Woking on 01483 43 44 455
Naomi Mdudu
Take in the views at this Surrey manor
Have all of your
needs catered for in
this comprehensive
4.75mhome in the
Wentworth estate
While the property boasts an impressive array of unique features, the grounds are the big selling point
NOW 50% SOLD
WIMBLEDON
VILLAGE
SW19
020 8879 0222 www.londonsquare.co.uk
WHERE GEORGIAN GRANDEUR
MEETS MODERN SPLENDOUR
Our sumptuous collection of four lavish 5 bedroom homes reect the aesthetic
and generous proportions of traditional Georgian properties, yet have been
designed with modern luxury in mind. Set within an exclusive gated community,
just a short walk from Wimbledon Villages cafs, shops and restaurants.
PRI CES FROM 2. 95M
THE NEW GROSVENOR SHOW HOME NOW OPEN
Marketing Suite & Show Home open daily, 10am 5.30pm
Edge Hill, Wimbledon Village, London SW19 4RB
Image depicts the Grosvenor Show Home at London Square Wimbledon Village. Details and prices are correct at time of going to press. All distances according to walkit.com.
Pionner small bowl 25
La Rochere Dragonfly Tumbler 5
Tribal frame 20
Fallen fruits rusty folk hook 8
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cityam.com
LIFE&STYLE PROPERTY INTERIORS
The must have items for 2013
Whether youre after a new look or simply items to refresh your home, these are John Lewis trends to know this year
Botanist is a distinctly British trend
and draws on our national obsession
with gardening in all of its forms, says
John Lewis Stratford City home design
adviser, Jo Rickwood. Our
spring/summer 2013 collection is
comprised of decorative accessories
and soft furnishings in signature prints
from the natural world. It also includes
decorative glass and tableware,
coasters and placemats; everything a
home needs for a spring update.
Just like with fashion, the world of
interiors is going global by tapping
into the explorer trend that has been
doing the rounds for a while.
At John Lewis our inspiration is rooted
in our pioneering ancestors, says
Rickwood. Were interested in the
meeting point between different ideas
and cultures, and have looked to places
like the sun baked deserts and
landscapes of the American
southwest.
Botanist herb tea towels 13
Botanist cork coasters 5
Dark blue meadow cushion 30
Dragonfly napkin ring 2.50
Green bud vases 2.50
Osler vase 20
Beechwood tealight holder 8
Pyramid Crewel Cushion 35
Kollur Rug in putty and ochre 145
Pioneer tree cushion 30
Key Trend 2:
Botanist
Key Trend 1:
Pioneer
All items featured are available at John Lewis
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London N1
Only two and three
bedroom homes remaining
Floor plans, specication
and prices available online
Sales Suite open
Thursday to Monday
Book a viewing today
Call 0844 406 9299
www.kingslandwharves.co.uk
Photography depicts Showhome
at Kingsland Wharves.
Computer Generated Image
is indicative only.
Hertford Wharf nal phase selling now
WINNER 2012 What House Awards Best Large Housebuilder | Building Awards Housebuilder of the Year
YOUR HOME MAY BE
REPOSSESSED IF YOU DO NOT
KEEP UP REPAYMENTS ON
YOUR MORTGAGE OR ANY
OTHER DEBT SECURED ON IT.
Last release of 4 bedroom townhouses from
382,500 with Easy Start
Selling Agent: Cubitt & West
*On selected homes only, subject to Easy Start terms and conditions and only available to customers where a primary mortgage is required to secure the purchase. 382,500 represents 85%of the full purchase price of 449,995.
Mortgage application will be subject to status. Prices correct at time of going to press. Photographs showWater Colour. Linden Limited. Reg. No. 01108676. Reg. O ce: Cowley Business Park, Cowley, Uxbridge, Middlesex UB8 2AL.
REDHILL
Surrey RH1 2LH
4 bedroom townhouses
from 449,995 or
382,500 with Easy Start
*
With Easy Start
*
we can help you make that all-important move
heres how it works:
- You own 100% of your home and pay just 85% of the price now
- Well give you an interest free loan for 5 years for the remaining 15%
- A 5% deposit is required to secure your mortgage
- Ask for details of other ways we can help you move
0844 417 5662
lindenhomes.co.uk/watercolour
Marketing Suite and Show Home
open daily 10am 5pm
Prices from
51,875*
* represents a 25% share
Tel: 0208 308 4193
Email: homes@gallionsha.co.uk
Web: www.parksideviewhomes.co.uk

OVER
70%
RESERVED
1, 2 & 3 BED APARTMENTS
Available through Shared Ownership

on selected
apartments for all
reservations by
28
th
Feb 2013.**
**Ask for details.
Conditions may apply.
500
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OR WHITE GOODS

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OR WHITE GOODS

on selected
apartments for all
eservations by r
28
th
Feb 2013.**
**Ask for details.
. Conditions may apply
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A
FTER THE success of its one-
bedroom apartments,
Kingsland Wharves is now
entering into the final stages
of completing the development by
launching a series of two and three
bedroom homes.
The prestigious new development is
comprised of exclusive apartments
overlooking the banks of the historic
Kingsland Basin and is already going
down well with City professionals on
the look out for a spacious pad with
great views.
Kingsland Basin dates back to 1882
and is one of the many basins housed
along the Regents Canal, and was
originally used to store and transport
materials to the warehouses in the
area. Today the apartment buildings
on the canal are designed to blend in
with the restored warehouse
aesthetic the area is known for.
All of the properties come with
smart, contemporary finishes to
make the move just that little bit
easier. Wooden veneer floors feature
throughout and each kitchen comes
fully equipped with wooden and
coloured gloss finishes and a range
of Bosch and Neff appliances. Large
balconies and patios have been
added to make sure guests can take
full advantage of the impressive
waterside views, too.
The development benefits from
being located in the heart of what east
London has to offer. The area
continues to be a melting pot of
different cultures so residents have a
range of restaurants with different
cuisines on their doorstep.
Aside from being within close
proximity of the City, residents also
benefit from being in the hub of the
bustling Shoreditch and Hoxton area,
with its independent cafes, thriving
night scene and celebrated arts
culture. Angel and Islington are close
by and can be accessed by the excellent
transport links.
The extension of the East London
Overground has opened up a new
world of connections for the area.
Haggerston overground station is only
two minutes walk away; Canary
Wharf, the West End and London City
Airport can be accessed in less than
thirty minutes and cyclists are well
and truly catered for by the plethora of
Boris bike docks in the area.
To view floor plans for Kingsland
Wharves, or to register your interest in the
new homes now, visit
kingslandwharves.co.uk or call the sales
team on 0844 406 9299.
The new development is already proving popular with City professionals due to its impressive views and central location
32
cityam.com
PROPERTY PROPERTY OF THE MONTH
Kingsland Wharves
offers waterside
living near the City
- we have a nuuber o 5% deosit scheues
*
available
to hel qet you uovinq
- Lleqant, rivate, qated houes o Uld 8exley hiqh street
- 1, 2 or 3 bedroou aartuents
OLD BEXLEY
Weir Road DA5 1LQ
1 & 2 bedroom apartments
from 199,995
A home in the heart of Old Bexley
yours with a 5% deposit
Subject to status and the relevant scheue rules. 1erus and conditions aly. Un selected houes only and not in conjunction with any other oer. Price correct at tiue o qoinq to ress. Couuter qenerated iuaqe shows Peritaqe Cate.
WINNER 2012 What House Awards 8est Larqe Pousebuilder Building Awards Pousebuilder o the Year
Sales Of ce open Thursday to Monday
10am 5pm from, 7 Bourne Road,
Old Bexley DA5 1LQ
0844 488 1276
lindenhomes.co.uk/heritage
0333 666 2535 www.londonsquare.co.uk
LEONARD
STREET
EC2
2 BEDROOM SHOW APARTMENT NOW OPEN
WHERE CITY SOPHISTICATION
MEETS SHOREDITCH COOL
Our 45 luxury 1 and 2 bedroom apartments and three stunning penthouses
offer superbly designed, spacious interiors on the edge of The City, with the
hip hangouts of Hoxton and Shoreditch just a 5 minute walk away.
PRI CES FROM 590, 000
Marketing Suite & Show Apartment open daily
28 Leonard Street, London EC2A 4BY (closest tube station is Old Street)
NOW 80% SOLD
Image depicts the two bedroom show apartment at London Square Leonard Street. Details and prices are correct at time of going to press. All distances according to walkit.com and t.gov.uk
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PROPERTY RENTAL OF THE MONTH
BOWTRINITYE3
Stylish apartments in ZONE 2 with amazing transport links, under 20 minutes from Liverpool Street & Canary Wharf!
Spacious studio, one, two & three bedroom apartments all with a private balcony or terrace
High specification apartments with stylish interiors
Close to Mile End Tube and Devons Road DLR for easy access to The City and Canary Wharf
Ready for Move-in from June 2013
Prices 190,000 - 338,500
*
Call: 020 3538 3476 www.bowtrinity.co.uk
Sales & Marketing Suite: 2 Eric Street, off Burdett Road, Bow, E3 4HG.
Opening hours: Monday - Saturday 10am - 6pm Sunday 11am - 5pm
*Prices correct at time of going to press. Photography of show apartment interiors. Map not to scale.
SHOW APARTMENTS AND SALES & MARKETING SUITE OPEN DAILY
A119
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THE HIGHWAY
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CITY OF
LONDON
A10
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BLACKWALL
TUNNEL TOWER
BRIDGE
ROTHERHITHE
TUNNEL
2012
Olympic
Park
LONDON
BRIDGE
LIVERPOOL
STREET STATION
ROYAL
DOCKS
CANARY
WHARF
STRATFORD
BOW
ISLINGTON
SHOREDITCH
WAPPING
HOLBORN
ALDGATE LIMEHOUSE
BASIN
A3
A1206
The O2
A201
A3211
A201
MILE END ROAD

BOW ROAD
NEW RELEASE OF STUDIOS, 1, 2 & 3 BEDROOM APARTMENTS NOW AVAILABLE
19th century gothic architecture at its best
A
CHARMING Grade II listed
Victorian gothic lodge,
located at the entrance of a
24-acre north London park
and cemetery, has become available
to rent this week.
East Lodge, which was built in 1855
on Willesden Lane at the entrance of
Paddington Old Cemetery, was sold
at auction by Brent Council in July
and acquired by a local couple inter-
ested in its heritage. It has since
been lovingly restored and repaired
by local master craftsmen and
builders Jennings and David
Construction.
The property is comprised of two
upstairs bedrooms and two ground
floor reception rooms, with a toilet
and bathroom located adjacent to
the ground floor kitchen. The
detached property has its own off-
street entrance and has its own gar-
den and outside space that has been
landscaped and made over by Clifton
Nurseries of Maida Vale. It also has
open access to the park and ceme-
tery areas.
It was originally designed by archi-
tect Thomas Little, who was the man
behind the Anglican chapel in
Nunhead cemetery. Today it enjoys
considerable parkland space, grass-
lands and walkways and is a popular
sanctuary for local residents, dog
owners and walkers.
The property is located within
half a mile of the A5 Kilburn High
Road, which is a major arterial
route in West London. It is also sit-
uated within 10 minutes walk of
Queens Park and Kilburn under-
ground station and Brondesbury
Park station is close, too. Residents
can also benefit from being within
close proximity to fashionable
Maida Vale, St Johns Wood and
West Hampstead, making it ideal
for commuters.
The property is available to rent for 625
per week. For more information contact
Paramount Properties on 020 7644 2314
or go to paramountproperties.co.uk
Despite the modern
interior, the
building still retains
its charming period
features
New Phase Launching from the Brand New Sales and Marketing Suite
16th and 17th February 2013
Marine Wharf, Surrey Quays, is ideally located only minutes from Canada Water and Canary Wharf and offers an outstanding
choice of apartments and penthouses. Forming part of a sustainable contemporary community, Marine Wharf will benefit from
shops and leisure facilities, including a Tesco Express, 24 hour concierge, residents gym, landscaped courtyards and a new park.
1, 2 and 3 bedroom apartments and penthouses available from 272,500
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Marine Wharf will have
over 1.5 acres for
people to enjoy.
Our Vision. Your Future.
In the last ten years,
The Berkeley Group has
created 436 acres of
public open space.
Proud to be a member of the
Berkeley Group of companies
www.marinewharf.co.uk
Call 020 8694 3100 for more information
Sales Information Centre open daily 10am to 6pm (Thursday until 8pm)
Plough Way, Surrey Quays, London SE16 7UD
The exciting new
vibrant destination for
Londons Dockside
38
cityam.com
Gsli rn Gararsson shines as Gregor Samsa
LIFE&STYLEGOING OUT
FILM
LINCOLN
Cert 12A | By Alex Dymoke
hhhhi
E
NTITLED SIMPLY Lincoln,
directed by Steven Spielberg and
with a score by John Williams,
you could be forgiven for
expecting a slick, grandiose epic. A
small town mid-Westerner who
educated himself, struck out on his
own, became a lawyer and eventually
President, Abraham Lincolns life is
tailor made for the Great American
Movie.
But this is no biopic. Lincoln declines
the romance of the mans life story.
The focus is narrow; one month, to be
precise. Its the beginning of 1865 and
the American Civil War is drawing to a
close. Lincoln is conflicted. Like every-
one else in the country he craves
ZERO DARK Thirty is military
jargon for the precise time,
12.30am, when US Navy SEALs first
set foot in Usama bin Laden's
(UBL) hideout. It is also the name
of director Kathryn Bigelow's
latest collaboration with
screenwriter Mark Boal (they are
the Oscar winning duo of Hurt
Locker fame). The film was
released to wide critical acclaim
it received five Oscar nominations
and a heavy onslaught of
criticism for its alleged
glorification of torture:
accusations that are more than a
little ridiculous.
Boal, a trained journalist, went
through a laborious, decade-long
fact-gathering process (almost as
long as the CIA mission his film
depicts), that included obtaining
first-hand accounts from counter-
terrorist operatives. To omit any,
ahem, questionable methods of
coercion he uncovered would be
sugarcoating history. In the event,
the film does nothing to glorify
these methods quite the opposite,
in fact. Bigelows film deliberately
questions the efficacy of torture: it
is a combination of bribery,
surveillance, and the discovery of
an old file by a CIA analyst, that
ultimately leads agents to bin
Laden's compound.
Despite the controversy, its not
long until the torture scenes are
over, and the focus shifts to
documenting the CIAs frustrating
struggle to find a needle in the
haystack. Tension builds as they
attempt to tap into bin Laden's
labyrinthine network an
operation that takes almost a
decade and is punctuated by a
series of attacks (London's 7/7, the
Taj Mahal Hotel bombing).
Maya (played by Jessica Chastain)
undergoes a radical
transformation from wide-eyed
novice to hardened navigator of
the counter-terrorism world.
For the first hour, she is a
distant character, with the
supporting cast Jason
Clarke and the consistently
excellent Jennifer Ehle
taking centre stage. Its only
halfway through the film,
when Maya breaks her
calm during a heated
exchange, that you start to
see why Chastain should win the
Oscar shes been nominated for.
The setting switches
from the clinical
corridors of Langley (do
US government officials
really swear this much?
They never did in the
West Wing) to the US
Embassy in Pakistan,
as the small team
of CIA agents hit
endless
stumbling
blocks in their
prolonged
intelligence
gathering
process.
When the
much-
anticipated
finale arrives,
after two
FILM
ZERO DARK THIRTY
Cert 12A | By Annabel Palmer
hhhhi
Jessica Chastains Maya
Lincoln is no ordinary biopic
peace. However, he is also aware of the
need to get the 13th amendment writ-
ten into the constitution before the
end of war, or risk the continuation of
slavery in the surrendering southern
states.
We are not presented with a simple
moral conflict: advocates of slavery
(bad) vs abolitionists (good). Instead the
plot is driven by the snags and
nuances of American government
institutions. The battle has already
been won the problem now is mak-
ing government work. Spielberg and
writer Toby Kushner take this towering
figure of American history and bring
him down to where he rightfully
belongs in the knotty world of
Washington DC.
When we first meet Daniel Day-
Lewiss Lincoln we cannot see his face.
Throughout the film he is often par-
tially cast in silhouette, a halo of light
outlining his profile. Its an apt
metaphor for the man: Lincolns great
moral victory was against slavery, but
the game at which he was most skilled
was a dark and dirty one politics.
In many scenes advisors and fellow
politicians surround him, indignantly
wrangling over Washington intrigue,
until he crashes a heavy palm to the
table. Silence falls and Day-Lewis fills it
with slow, heavy words, rich with wis-
dom but delivered through a twin-
kling smile.
He talks in stories and parables, and
just as his face is obscured by darkness,
it is often unclear what he is getting at.
At one point he makes the enigmatic
declaration, Time thickens things, to
which his loyal secretary of state
responds, Yes I guess it does Actually
I have absolutely no idea what you
mean.
With his mischievous smile, Day-
Lewis is predictably good at portraying
Lincoln the astute politician while
retaining his aura as the ultimate
champion of liberty. The rest of the
Daniel Day -
Lewis is on
superb form as
the title character
FRANZ KAFKAS The
Metamorphosis, in which
protagonist Gregor Samsa wakes
up one morning to discover he has
turned into an Ungeziefer
(usually translated as beetle) has
variously been interpreted as the
most harrowing of
autobiographies, a comment on
the alienation of modernity and,
perhaps most profoundly, the best
literary depiction of a hangover
(thanks, Kingsly Amis).
In the hands of Gsli rn
Gararsson the co-director,
writer and star of the show it is a
darkly comic family melodrama,
in which the metamorphosis is
realised through a gravity-defying
performance that sees Samsa
literally crawling the walls as he
loses touch with the world. It is a
bravado performance at once
heartbreaking and physically
impressive. Samsas grotesque
family add a dry humour to what
could easily have descended into a
grindingly miserable adaptation,
and Jonathan McGuinnesss
fascistic lodger is deliciously,
camply menacing.
The staging is immaculate,
warping the physical space of a
middle-class family home into a
surreal climbing-frame for Samsas
insecurities to explore.
An original soundtrack
composed by Nick Cave and
Warren Ellis completes this
brilliantly realised, strangely airy
adaptation.
A darkly comic
take on Kafka
THEATRE
THE METAMORPHOSIS
Hammersmith Lyric | By Steve Dinneen
hhhhi
cast is consistently excellent too,
which is lucky given how talky the
whole thing is (after half an hour I felt
like a constitutional scholar). Tommy
Lee Jones is particularly good as the
acid tongued radical, Thaddeus
Stevens.
In a Zen-like display of will-power,
Spielberg manages to hold the senti-
mental gloop at bay for almost the
entire film. Almost. Unfortunately
there is an almighty lapse in the
final ten minutes, one that is diffi-
cult to stomach precisely because the
rest of the film left us unprepared
for it.
Overall, though, this is a classy polit-
ical drama about the machinery of
power. It has more in common with
something like In the Loop than, say,
Amazing Grace (the 2006 William
Wilberforce biopic set over 20 years).
Lincoln depicts a moral visionary, but
focuses on his pragmatism. Are you
taking notes, Mr Obama?
Zero Dark Thirty surpasses even Bigelows The Hurt Locker
hours of buildup, you feel like
youve earned it. And Bigelow
doesnt disappoint: its a nail-biting
climax, even though you know the
outcome. Its filmed primarily
through the SEALs night vision
goggles a very effective tactic for
building suspense when used well
(not like Arnie's Eraser). The scene's
realism never falters: Bigelows
production team built, brick by
brick, a 38,000 square foot
compound based on blueprints;
black hawks were actually used.
There can be little doubt that
Bigelow is Hollywoods foremost
narrator of 21st century warfare.
Zero Dark Thirty is a powerful,
gripping thriller that even
surpasses Bigelows last outing it
deserves to be judged on its own
merits, rather than by the half-
baked controversy it unfairly finds
itself mired within.
39
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TVPICK
A
FTER what has been a
most unwanted hiatus
from National Hunt
racing we have to hope
and pray that tomorrows
fantastic card at Cheltenham
gets the green light.
Festival clues will come thick
and fast from the first race to
the last and the highlight for
many will be the return of
Sprinter Sacre in the resched-
uled Victor Chandler Chase
(1.50pm). There is very little
more to be said about this ani-
mal; just sit back and enjoy.
The other feature race is the
Grade Two Argento Chase
(2.25pm) and it is hugely disap-
pointing that both Bobs Worth
and Tidal Bay are likely to miss
out on the race.
The former would have been
a strong fancy, but in the lead-
ing duos absence I cant see
past 2010 Gold Cup winner
IMPERIAL COMMANDER. Nigel
Twiston-Davies 12-year-old has
been off the track for nearly two
years, but his record when fresh
alleviates most concerns about
that absence.
In five seasonal reappear-
ances he has only been beaten
once and that was a nose defeat
to the great Kauto Star in the
2009 Betfair Chase. He also has
to carry up to 10lb less than his
rivals tomorrow and I dont
think there is anything to be
scared of in the line-up.
Grands Crus would be a
threat on the best of his form,
while I would also give a little
each-way squeak to Wayward
Prince, although he has to carry
a penalty and concede weight to
a number of runners, including
my selection.
THE NEW ONE is scheduled
to line up in the following
Neptune Investment Novices
Hurdle Trial (3.00pm) and he
will surely take all the beating
following his demolition job at
Warwick a fortnight ago.
It remains to be seen who will
take him on but the connec-
tions of Puffin Billy seem happy
enough to avoid him and there
is every chance Nigel Twiston-
Davies contender is a future
star in the making.
Yes, he has some minor jump-
ing frailties, but he is unbeaten
over hurdles, has won at the
track and should strip even fit-
ter for his Warwick run, which
is a very scary proposition for
his rivals.
The Cleeve Hurdle (3.35pm)
looks a straight match between
Oscar Whisky and Reve De
Sivola, with the stamina doubts
of the former the only thing
stopping me putting him up. If
he wins, hell be a very short
price for the World Hurdle, but
Im happy to keep a watching
brief.
Its difficult to know who is
running in the handicaps, but
the one I want to be with, if lin-
ing up, is Jonjo ONeills JOHNS
SPIRIT in the 2m 5f Novices
Handicap Chase (12.40pm).
He travelled brilliantly last
time at Sandown before run-
ning out of puff and a nine
length second to the progressive
Katenko over a trip too far is
very strong form.
AP McCoy is jocked up and off
10st 11lb I fancy the pair to go
very close indeed. Vino Griego,
tipped up in this column last
weekend for Ascots abandoned
meeting, should also run well
for the in-form Gary Moore
yard.
Follow me on Twitter
@BillEsdaile for all my latest
views.
Commander can
return with a
bang in Argento
Chase with big
guns missing
2010 Gold Cup winner Imperial Commander can mark his comeback with a win
n Pointers
JOHNS SPIRIT e/w 12.40pm Cheltenham
(tomorrow)
IMPERIAL COMMANDER 2.25pm Cheltenham
(tomorrow)
THE NEW ONE 3.00pm Cheltenham
(tomorrow)
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7/5 Millwall 12/5 Draw Aston Villa 9/5
FA Cup. Kick-off 7:45pm
CORRECT SCORE
9/1 0-0 9/1
7/1 1-0 7/1
11/2 1-1 11/2
9/1 2-0 11/1
8/1 2-1 10/1
14/1 2-2 14/1
25/1 3-0 28/1
20/1 3-1 25/1
Millwall Aston Villa Millwall Aston Villa
40
THEPUNTER
RACING TRADER
BILL ESDAILE PREVIEWS CHELTENHAMS TRIALS DAY
EACH week I will be bringing you a
selection for the Cheltenham Festival that
I feel has the potential to shorten between
now and mid-March.
Oscar Whisky is a prime candidate but,
as Ive already said, he is far from
guaranteed to stay in tomorrows Cleeve
Hurdle. Instead, Im going to focus on the
RSA Chase as Im keen to oppose David
Pipes hot favourite Dynaste, currently
available at 5/2 with Star Sports.
There is no doubt that the seven-year-
old grey gelding is the most exciting
staying novice chaser this season and its
all too lazy to draw comparisons with
stablemate Grands Crus, who was a
beaten favourite in this race last year.
That said, the RSA is a war of attrition
and Im not sure this test of stamina is
what he wants. He has been beaten both
times he has run at Cheltenham over
three miles, admittedly both times behind
Big Bucks. Hes also still in the Jewson
which connections may opt for.
The problem is finding one to beat him,
but Im pretty sure Willie Mullins
BOSTON BOB will start shorter than the
current 7/1 available with Star Sports.
He is due to run at Leopardstown
tomorrow over 2m 5f and Mullins seems
to be adopting a similar strategy to when
Cooldine won the RSA in 2009. The
trainer campaigned him over shorter trips
before stepping him up to 3m f at
Cheltenham.
Boston Bob looks an out-and-out stayer
to me and I can see him powering past
Dynaste up that unforgiving hill.
nPointers
BOSTON BOB 7/1 RSA Chase
(Cheltenham Festival)
BY BILL ESDAILE
The Road to
Cheltenham
WWW.STARSPORTSBET.CO.UK 08000 521 321
41
FOOTBALL TRADER
BEN CLEMINSON PREVIEWS THE WEEKENDS FA CUP ACTION
cityam.com
A
REPEAT of the 2011 final kicks-
off tomorrows FA Cup fourth
round action when
Manchester City travel to the
lively Britannia Stadium.
Roberto Mancini closed the gap at
the top of the Premier League to five
points last weekend and hell be
keen to build on a run of five
successive victories across all
competitions. We tipped up City to
lift the trophy in May at 11/2 with
Blue Square Bet a few weeks ago.
They are now priced at 9/2 and I
dont see any reason to desert them.
Stoke boasted the best league
defence until the turn of the year
and now its City who arrive on the
back of four clean sheets. Compared
to the Potters run of one win in 10
matches, it is clear to see why the
visitors are strongly fancied to
progress.
One of those defeats came at the
Etihad, but the Staffordshire side
are a different beast at home. They
ran City close in the final two years
ago, yet ultimately fell short and I
fancy the same outcome again,
which can be backed at 4/5 with
Coral. Expect Mancini to keep it
tight, so spread bettors are advised
to sell total goals at 2.6 with
Sporting Index.
Before then Aston Villa will be
desperate to avoid a second
disastrous result in a week when
they head to London to take on
Millwall tonight.
The last time these two clubs faced
each other in this competition was
27 years ago, when the Lions went
through thanks to a 1-0 win after the
first tie had ended 1-1 at Villa Park.
Paul Lambert failed to inspire a
comeback against Bradford in the
Capital One Cup and the confidence
visibly drained from their young
side when the equaliser went in.
Expect Kenny Jackett to have been
working on set-pieces during the
build-up after witnessing the
Bantams score three of their four
goals against Villa from corners.
With relegation a genuine
concern for Lamberts men,
additional matches wont be high on
their wish list with a small squad
and their midweek exertions likely
to affect their chances. Away from
Birmingham its four games
without a win for Villa and Im
happy to tip up Millwall at 7/5 with
Blue Square Bet.
Manchester United needed two
attempts to get past West Ham, but I
dont expect them to have the same
issue with a struggling Fulham side.
The Cottagers are notoriously bad
travellers and they head to Old
Trafford knowing that United have
won nine straight domestic home
games.
Martin Jols side have lost half of
their away fixtures in the league
this season and that includes a 3-2
defeat at Old Trafford.
In Uniteds past six home league
games they have racked up 15 goals,
while they notched 18 in their
previous six meetings with Fulham.
Sir Alex Ferguson will be keen to
avoid another cup replay, so expect
him to send out a strong starting XI
to get the job done early and Im
happy to take United with the -1.5
Asian handicap at 2.0 with Samvo.
n Pointers
Manchester City at 4/5 with Coral
Sell total goals (Stoke v Man City) at 2.3 with
Sporting Index
Millwall at 7/4 with Blue Square Bet
Manchester United with -1.5 Asian handicap at 2.0
with Samvo
Results
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Manchester City, the 2011 winners, remain on course to lift the FA Cup
IN BRIEF
Wiggins targets Giro and Tour
n CYCLING: Britains Bradley Wiggins
is set to bid to become only the eighth
man to win the Tour de France and the
Giro dItalia in the same year. Team
Sky have confirmed that Wiggins will
ride the Giro in May as well as
defending his Tour title in June and
July. The Olympic time trial champion
is slated to begin his season with the
Mallorca Challenge next month.
Alonso sits out first Ferrari test
n FORMULA ONE: Ferraris Fernando
Alonso is to skip the first testing
session of his teams new car in Jerez
next month in order to focus on his
fitness. Felipe Massa and development
driver Pedro de la Rosa will instead
put the 2013 model through its paces,
before Alonso gets behind the wheel
in Barcelona two weeks later.
U
NFORTUNATELY,
the snow put
paid to last
weeks racing at
Lingfield Park
Racecourse so we
missed out on round
three of the Blue
Square Bet Sprint
Series. The staff at the
track have done a great
job this week in
ensuring that weve
had racing and tomorrow will
see the series return with a
bang.
Looking at the action and
DIAMOND VINE makes an
eagerly awaited appearance in
the first division (1.25pm)
following his record as one of
the highest points scorers in
the 2012 competition. He
made five scoring appearances
in the heats last year,
including two wins, and he
finished off with a fourth
place in the Grand Final. Youd
have to expect a renewed
challenge on Saturday after a
break of a few weeks.
David Evans has yet to saddle
a winner but HAADEETH looks
primed to run a big race in the
second division at 2.00pm. He
had a bit of trouble in running
when finishing fifth in round
two of the series. A winner in
round six last year, his trainer
certainly targets the
competition and he is worth an
each-way investment.
Remember to punt with Blue
Square Bet as we will give you
your money back if you finish
second, beaten less than half a
length, in all Blue Square Bet
Sprint Series races.
Visit http://betting.bluesq.com/
for more information and to
read exclusive blogs from jockey
Luke Morris and ATR all-weather
specialist Simon Mapletoft.
WITH ALAN ALGER
FROM BLUE SQUARE BET
City can edge
out Stoke at
the Britannia
CHELSEA star Eden Hazard was
accused of shaming Belgium and
faced the renewed threat of police
action last night for appearing to
kick a ball boy in Wednesdays
Capital One Cup exit at Swansea.
Football Association chiefs, howev-
er, were still deciding whether the
32m midfielders actions warrant
increasing the three-match ban auto-
matically triggered by his red card
for violent conduct.
Belgian footballs chief executive
Steven Martens declared himself
not proud of the 22-year-olds alter-
cation with the teenage ball boy,
which he branded unpleasant.
Its unfortunate and of course its
not something we are proud of. No
football authority or person interest-
ed in football likes to see acts of vio-
lence or lack of respect and this is
what happened, said Martens.
Professionals have to be able to
control their emotions and when
they dont thats unpleasant in gen-
eral. But Eden is more than intelli-
gent enough to understand that this
is going to be a lesson learned for
him. All of us make mistakes in life.
South Wales Police have reopened
their investigation into the clash
after receiving three complaints
from members of the public.
The case had previously been con-
Belgian FA
slam Hazard
for ball boy
altercation
sidered closed after the ball boy, 17-
year-old Charlie Morgan, the son of a
Swansea director, told officers he did
not wish to pursue the matter.
Chelsea captain John Terrys crimi-
nal trial for alleged racism towards
Queens Park Rangers Anton
Ferdinand, in which he was acquitted
last year, arose only after a member of
the public complained to police.
The FA spent yesterday scrutinising
video recordings of the semi-final as
they ponder whether to take further
action against the former Lille player.
Hazard has argued that he was try-
ing to kick the ball free from under
the boy, who was lying over it. He
appeared to connect with the youth,
who then clutched his ribs.
Chelsea would be entitled to appeal
any charge, and Hazard, who had
never been sent off before, apologised
both to the boy and publicly immedi-
ately after the match.
Players union chief Gordon Taylor
condemned Hazard but called for a
measured response.
You cant take the law into your
own hands, said Taylor, chairman of
the Professional Footballers
Association. He lost his head, his
actions were unacceptable and the
referee had no alternative. He made
the correct decision but you do not
want people to be hung, drawn and
quartered for things that happen in
the heat of the moment.
CRYSTAL Palace and England
forward Wilfried Zaha is poised to
seal a dream 15m transfer to
Manchester United, but will remain
in south London until the summer
to help the Eagles bid for promotion.
The Ivory Coast-born 20-year-old,
who was handed his first
international cap by Roy Hodgson in
last years friendly defeat in Sweden,
is expected to cost United 10m up
front rising to a potential 15m
depending on appearances and
performance.
Zaha is believed to have agreed a
contract until 2018 at Old Trafford
after the Premier League leaders
manager Sir Alex Ferguson held
talks with the Palace academy
product at the weekend.
But under the terms of the deal
the pacey, versatile attacker, who can
play on the wing or as a striker, is set
to remain on loan at Selhurst Park
until the end of the season.
Zaha has scored five goals in 27
Championship appearances this
term as Palace have climbed to
fourth in the second tier, despite the
departure of boss Dougie Freedman
for Bolton in October.
Securing his signature represents
a transfer coup for United, amid
interest from other top flight sides
including Arsenal, although their
manager Arsene Wenger insisted he
had not bid for the player last week.
Zahas summer arrival
will increase
doubts over the
long-term future
of Portugal
winger Nani,
who is wanted
by Russian clubs
and has become
an increasingly
peripheral figure
at Old Trafford
this season.
United spend
15m on Palace
forward Zaha
NEWCASTLE continued their
Francophile January spending last
night by signing left-back Massadio
Haidara and closing in on a deal for
midfielder Moussa Sissoko.
Haidara, 20, joins from Nancy on
a five-and-a-half-year contract and
will provide competition for Davide
Santon, who has been linked with a
move back to his native Italy.
Sissoko is set to swell the French
ranks at St James Park further
after his club Toulouse yesterday
said the 23-year-old, capped six
times, had agreed a move.
The Magpies have already lured
Montpellier defender Mapou
Yanga-Mbiwa and Bordeaux
forward Yoann Gouffran across the
Haidara and Sissoko sign up for
Newcastles French revolution
Channel this week, and signed
right-back Mathieu Debuchy from
Lille earlier this month.
Those arrivals take the number
of French players in Alan Pardews
squad to 11, with first-team
regulars Hatem Ben Arfa and
Yohan Cabaye the most prominent.
The other Frenchmen currently
on Newcastles books are
midfielders Sylvain Marveaux,
Gabriel Obertan, Romain
Amalfitano and Mehdi Abeid.
Readings French forward Jimmy
Kebe yesterday sparked confusion
when he joked on Twitter that he
was also on his way to the north
east. But Kebe later wrote: Oups
[sic] i thought if youre french and
play football u just pop in to
Newcastle and sign a contract.
THE OLYMPIC Stadium will mark the
anniversary of last years Games
opening ceremony by hosting the
London Grand Prix athletics meeting
later this year.
The event, which has been moved
from its traditional home of Crystal
Palace, is set to take place on the
weekend of 27 July a year after
London 2012 got under way. Moving
the meeting means a huge potential
increase in attendance the
Stratford venue holds up to 80,000
compared to Crystal Palaces 22,000.
Olympic heptathlon champion
Jessica Ennis said: Hopefully I will
be there and using the competition
as part of my preparation for the
World Championships [in August].
Track date for
Olympic Park
BY FRANK DALLERES
42
SPORT
cityam.com/sport
BY FRANK DALLERES
BY FRANK DALLERES
BY FRANK DALLERES
TOTTENHAM have failed in their
latest attempt to persuade Schalke to
let Germany midfielder Lewis Holtby
join them and ease their midfield
injury concerns.
Spurs have a deal in place for
Holtby, who has an English father, to
join them in the summer on a free
transfer when his contract expires.
But an injury to central midfielder
Sandro has increased their need for
cover and prompted them to make
Schalke an offer to let the 22-year-old
leave this month.
The Bundesliga clubs general
manager Horst Heldt said
Tottenham would have to raise their
bid if they wanted to accelerate the
move, but left the door open for
Schalke reject Tottenham bid
to accelerate Holtby transfer
further negotiations.
Spurs have increased their offer
for Holtby, but only slightly, he
added. It remains unacceptable. We
will have to wait and see. Feasibility
is what its about, not wishes.
Sandro is likely to miss the rest of
the season following knee surgery,
while his replacement, Scott Parker,
has a chequered injury record.
Manager Andre Villas-Boas can
scarcely afford further casualties in
midfield or attack as he looks to lead
Tottenham back into the Champions
League in his first term.
Emmanuel Adebayors absence on
international duty has left Jermain
Defoe as his only striker, although
Clint Dempsey proved his penalty-
box value with the equaliser against
Manchester United on Sunday.
BY FRANK DALLERES
Zaha is set to
stay at Palace on
loan until the
summer
@cityam_sport
Hazard is waiting
to hear whether
the Football
Association plans
to extend his
three-match
suspension
43
WARWICKSHIRE all-rounder Chris
Woakes has been handed an
extended England audition after
seamer Tim Bresnan was ruled out
next months tour of New Zealand.
Woakes, who has briefly featured
in the current one-day series in India
but is uncapped in the five-day
game, replaces Bresnan in the Test
and Twenty20 squads.
The 23-year-old is also one of three
additions to the one-day party, along
with Yorkshire batsman Joe Root and
Middlesex seamer James Harris.
Root had been slated to captain
the England Lions, who tour
Australia in February, but is instead
bound for New Zealand, where he
will also be part of the Test squad.
Bresnan will fly home from India
after Sundays final ODI to see a
specialist about a long-standing
elbow injury.
Batsman Eoin Morgan and all-
rounder Samit Patel have been
dropped from the Test squad, while
wicketkeeper Craig Kieswetters
England future looks bleak after he
was axed from the one-day side. The
first T20 in Auckland is on 9 February.
Bresnan and
Kieswetter out
of England trip
I was really panicking, but not because I
couldnt convert my match point
cityam.com
BY FRANK DALLERES
A BUSI NESS CLUB EXCLUSI VELY FOR THOSE AT THE VERY TOP OF THEI R GAME
The Tulip Club
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the Parrot Tulip is synonymous with success. Its the territory of the highest ranking,
the most afuent, and the most inuential.
The Tulip Club will bring together the cream of the business community for the nest
in rugby hospitality at Saracens new state-of-the-art stadium, Allianz Park, in the heart of London.
As well as exclusive networking opportunities and special themed events in the heart of the city.
To join the waiting list, email hughvyvyan@saracens.net
Momentum behind
Murray as Brit aims
to end Federer curse
STATISTICS, it is said, can be used to
justify any argument, but the
weight of data in Andy Murrays
favour ahead of the Britons
Australian Open semi-final against
Roger Federer today is compelling.
The US Open champion has
enjoyed the better of their 19
encounters and won nine of their 17
meetings on hard courts, while his
progress to the last four has been
unfettered by a single dropped set.
Yet to reach Sundays final, where
world No1 Novak Djokovic awaits,
Murray will have to achieve a
significant first: beating Federer, the
second seed, in a grand slam.
Three times they have met at
major tournaments, three times in
the final, and three times the Swiss
has won, for the loss of just one set
in last summers emotional climax
to Wimbledon.
But that match proved something
of a turning point for the Scot. A
hitherto lukewarm British public
embraced him and he returned to
Centre Court weeks later to thrash
Federer and claim Olympic gold.
Murrays biggest title yet was a
watershed moment and has palpably
galvanised the 25-year-old, who
followed London 2012 success by
becoming Britains first grand slam
champion since 1936 in New York
the following month.
His unfussy procession through
the draw in Melbourne lends weight
to arguments that this is a new,
more confident Murray, at last
unintimidated by going toe to toe
with the best on the biggest stage.
Federer himself praised Murrays
more assertive game this week,
while trying to brush off fears that
his own five-set win over Jo-Wilfried
Tsonga had left him drained.
Murray, by contrast, should stride
out at the Rod Laver Arena at 8:30am
British time in peak condition and
with good reason to believe he can
finally end Federers grand slam hex.
BY FRANK DALLERES
Murray, who is on court at 8:30 this morning, has never beaten Federer in a grand slam
Victoria Azarenka denies tactical time-out claims in Australian Open semi
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