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NOKIA: NEW PHONE IS BEST EVER

BUT ITS SHARES STILL TUMBLE 13 PER CENT

Public encouraged to extend homes to boost economy

See Page 22

BY JAMES WATERSON

David Cameron and Nick Clegg are set to launch a series of economic growth policies in coming weeks sion of the FirstBuy scheme to encourage new homeowners, with funding for another 16,500 new homeowners. The programme is a joint initiative between leading housebuilders and the government, providing new buyers with a loan of up to 20 per cent of their new property’s value. The announcements come after David Cameron completed his first government reshuffle, with a pledge to focus on implementing policies to drive economic growth. ALLISTER HEATH: Page 2 

homes and kick-start the economy,” the Prime Minister and deputy prime minister said in a joint statement. “We’re determined to cut through the bureaucracy that holds us back. That starts with getting the planners off our backs. Getting behind the businesses that have the ambition to expand. And meeting the aspirations of families that want to buy or improve a home.” In addition to relaxing the rules on home improvements there will also be an exten-



PLANNING laws will be temporarily relaxed to allow home extensions to be built without planning permission in an attempt to boost the flatlining economy, the government will announce today. Homeowners will be allowed to build single-storey extensions that stretch up to eight metres beyond their property’s rear wall without having to jump through the existing bureaucratic hoops. At the moment owners of terraced houses are permitted to build three metres from their back wall without resorting to official procedures and owners of detached properties can extend their home by four metres. The government’s proposals will see these limits doubled, although councils may retain some ability to veto development in conservation areas. The government hopes that by substantially reducing the amount of paperwork required to build a conservatory, loft extension or garage conversion they can revive the construction industry and help kickstart growth across the rest of the economy. The plan would also enable businesses to expand their shop by 100 square metres and industrial units by 200 square metres without full planning permission. Any relaxation of the laws will be temporary with the waivers likely to end before 2015 in an attempt to make property owners commit to spending during this parliament. Approximately 200,000 planning applications are made for residential improvements every year in the UK, most of which are approved – but only after a process that often takes up to eight weeks. There will be a swift consultation on the new measures before they are implemented later this year. “This government means business in delivering plans to help people, build new

Lloyds in new mis-selling probe as FSA plans crackdown BY TIM WALLACE LLOYDS is facing an FSA probe into the state of compliance practices which may have enabled mis-selling to take place back in 2011, it emerged yesterday. The revelation came hours after top regulator Martin

Wheatley told the industry it has just 18 months to reorganise bonus rules to remove perverse incentives which can promote damaging sales practices. Banks are rushing to meet the tough new regulatory guidelines, yesterday pledging to crack down on

mis-selling. If they fail to hit Wheatley’s targets, he will take a “more intrusive” approach, which could see individuals punished. Wheatley’s bold effort to change the whole selling culture within banks represents a major challenge

FTSE 100 M 5,657.86 -14.15 DOW  13,047.48 +11.54 NASDAQ  3,069.27 -5.79

for the embattled industry. Consultants expect banks will have to change the way they recruit and train staff, and spend more on HR and compliance to clamp down on mis-selling if they want to please the regulator, who will soon head up the Financial Conduct Authority.

£/$ 1.59 unc

£/€ 1.26 unc €/$ 1.26 unc

Certified Distribution 02/07/12 til 29/07/12 is 131,194

THURSDAY 6 SEPTEMBER 2012

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To contact the newsdesk email [email protected]

At last, a genuine supply-side reform from David Cameron

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UST when I had almost completely written off this government, it has suddenly decided to announce a genuine, albeit limited, pro-growth policy. Speaking today, the Prime Minister will announce an emergency but time-limited partial liberalisation of planning rules. For one year only, there will be a doubling of Permitted Development Rights – what businesses and homeowners are allowed to do without the need to seek planning permission. It will become easier to put in a new conservatory, loft extension or garage conversion, though there may still be limits to this in certain areas. David Cameron will promise that homeowners will be able to extend to 6m or 8m beyond the property’s rear wall, depending on whether it is a terraced or detached property. Businesses will

Draghi likely to buy bonds in short term fix BY TIM WALLACE MARKETS edged up yesterday on hopes that European Central Bank boss Mario Draghi will today announce plans to buy more bonds in an effort to temporarily ease the pressure on troubled governments. The central banker has been caught between dovish factions looking to relieve the pressure on the beleaguered Italian and Spanish governments, and hawkish Germans who are concerned the ECB will break its mandate by intervening too far in markets. Draghi has tried to forge a middle path, hinting that high borrowing costs in troubled countries impedes the proper functioning of normal monetary policy and so merits his attention. However, he is not expected to go all out on a US- or UK-style round of quantitative easing, and is instead likely to announce any further bond purchases will be “sterilised,” as they have been in the past. That means the ECB will take in deposits from banks equivalent to the amount of government bonds purchased, thus avoiding accusations of printing money to bail out governments. Spanish government borrowing costs fell, with 10-year bond yields down 0.161 percentage points to 6.41 per cent. Italian yields also fell 0.154 points to 5.514 per cent. 



EUROZONE: Page 13

EDITOR’S LETTER ALLISTER HEATH be able to expand their shop by 100 square metres and industrial units by 200 square metres, and shops and offices will be permitted to develop up to the boundary of the premises. This would be an excellent, though of course somewhat limited, measure. Let us hope that these reforms actually materialise, unlike so much of what the government has promised until now. The government says that there will be a one month consultation period and that the changes

will happen before the end of the year, guaranteeing a substantial construction boom and the rescue of a struggling industry. It will also help partly alleviate Britain’s horrendous housing crisis, which sees millions of families crammed into excessively cramped accommodation. Many will now be able to extend their properties, including semis and ground floor flats. Many families can’t afford to move, because loan to value ratios on mortgages have declined substantially and because of crippling stamp duty. However, many of these will be able to extend the size of their properties, thus making a move less necessary. Of course, it will only benefit those with the land and money to pay for an extension, but that will still be a large number of people. This partial and temporary liberalisation of the housing market will not

Women execs in sharp rise across Europe BY BEN SOUTHWOOD A THIRD of all new board members at Europe’s biggest firms this year are women, new research reveals today, with women now holding almost double the number of board seats than just eight years ago. Female directors now make up 15.6 per cent of boards, up from just eight per cent in 2004, and eighty-six per cent of the biggest European companies now have at least one woman on their board. The number has risen by seven percentage points since 2010, and is up 25 percentage points since 2004, when just 61 per cent of boards included both genders. And according to the research, by headhunter Egon Zehnder, the trend is only accelerating – if appointments continue at their current rate women could make up a quarter of all boards in the next five years. But progress has not been uniform across the continent. Every one of the largest companies across five Scandinavian countries has a woman on their board. The UK is close behind: only five per cent of firms

surveyed– all with a market capitalisation of over €4bn – have a wholly male board. On the other hand, Greece, Italy, and the Netherlands are well behind – in each country nearly a third of the biggest businesses have boards including no women. In Portugal and Luxembourg this proportion rises to around half. “Our statistics suggest we could be at a tipping point, with women set to fill one in four of all board roles across Europe within five years,” said Damian O’Brien, chief executive of Egon Zehnder. “To sustain future growth, the key challenge...will be to ensure more women [are] rising through the executive ranks. Since 2004, when the research started, women have risen to the top of several key British companies. Angela Ahrendts joined the Burberry board in 2006 and became chief executive later that year, while Deirdre Mahlan was made finance chief of drinks firm Diageo in 2010. Alison Carnworth – who recently left the board of Barclays Bank – still

please everybody. Many neighbours will be angered by new structures appearing in their neighbourhood and at times damaging their views. It will be decried as anti-environmentalist, as the greatest ever destruction of garden space. It was the Conservatives who used to rail against people who paved over their front gardens to make space for off-street parking; Lib Dems activists will be outraged. Of course we mustn’t concrete over the whole of the countryside or build skyscrapers in every back garden. But we have gone too far the other way. We have become ridiculously antidevelopment and anti-growth, destroying jobs, artificially boosting house prices, and forcing young people to live in rabbit hatches. Property rights – the ability do what one chooses with one’s land and home – have been excessively eroded, with home-

WOMEN ON BOARDS: HOW EUROPEAN COUNTRIES COMPARE COUNTRY

2004

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Austria 7 Belgium 3 Denmark 4 Finland 14 France 6 Germany 10 Greece NA Italy 2 Luxembourg NA Netherlands 7 Norway 22 Portugal NA Ireland NA Spain 3 Sweden 20 Switzerland 9 UK 10 Europe Overall 8

6.8 4.2 17.9 20 7 7.2 4.4 1.6 0 6.5 28.8 0 8.1 4.3 22.8 5.9 11.4 8.3

8 13.3 17 27.1 20.5 12.8 10.4 8.4 6.1 12.5 36.4 4.7 12.9 11.8 24.6 11.6 18.2 15.6

holds non-executive directorships at Man Group and Zurich, and was appointed chair of Land Securities in 2010. And just last month Estelle Brachlianoff relocated from Paris to London to become chief executive of the UK’s biggest waste management firm, Veolia. Despite these high-profile hires, the survey shows women are still under-represented in executive roles. Just one in 20 executive board positions across Europe are held by women, and this figure has stagnated since 2010.

owners having to grovel for permission for even the smallest changes. It has become far too difficult to get anything done in Britain. In most other areas the government is still getting it wrong, with the ridiculous decision to set up a commission into airport expansion that will take three years – yes, three years, until the summer of 2015 – to report. It is these sort of cowardly blunders that have made me such a harsh, despairing critic of this government, especially given its inability to push through supply-side reforms. But not today. For once, the prime minister is showing courage. This reform, while modest, will create tens of thousands of jobs. The devil will be in the detail, but this fresh attitude is to be applauded. [email protected] Follow me on Twitter: @allisterheath

Ed Balls calls for wealth tax BY JAMES WATERSON SHADOW chancellor Ed Balls has backed proposals for a permanent wealth tax on homes worth more than £2m in order to safeguard key public services and offered to discuss the idea with business secretary Vince Cable. “The likes of a mansion tax need to be on the table to be looked at,” the Labour MP told the Independent. “I’m open to new ways of making our economy strong which requires investment in skills and universities and for the NHS.”

Fourth London Whale trader BY CITY A.M. REPORTER A fourth London-based JP Morgan Chase trader is under scrutiny in the investigation by US authorities into the bank’s nearly $6bn (£3.7bn) trading loss. Julien Grout, a trader who joined JPMorgan Chase in 2009, is drawing attention because he worked in the bank’s Chief Investment Office and reported to Bruno Iksil, the French credit trader nicknamed the ‘London Whale’ who is a central figure in the federal probe, two sources told Reuters.

WHAT THE OTHER PAPERS SAY THIS MORNING Citigroup targets European banks

Citigroup is launching a commodity trade finance business to capitalise on the pullback from the market by European lenders such as BNP Paribas. European banks including BNP and Crédit Agricole are scaling back their presence to limit their need for scarce dollars and comply with tougher regulatory capital requirements.

Ex-Porsche CFO denies credit fraud

Porsche’s former chief financial officer has denied committing credit fraud during

the carmaker’s failed attempt to take over Volkswagen. On the first day of his trial in Stuttgart, Holger Härter told reporters that he rejected the accusations and would prove prosecutors wrong in court.

Goldman boosts loans to wealthy

The private bank of Goldman Sachs is quietly beefing up its lending to wealthy individuals with a host of new loan products and credit offerings. Investment banks such as Goldman and Morgan Stanley have turned to private banking to boost revenues as new rules are expected to clamp down on their old profitmaking activities.

CITYAMCAREERS.com

UBS fears over rogue trader trial

The head of UBS has warned staff to toe the line as Switzerland’s biggest bank prepares for a barrage of negative publicity when the trial of an alleged rogue trader begins in London next week. UBS employees have been urged to avoid jeopardising the criminal proceedings by commenting publicly.

Ex-Clinton’s boss to head Costcutter Costcutter has brought in Darcy WillsonRymer, the former boss of the Clinton Card chain, as its new chief executive.

US judge dismisses RBS investors

Royal Bank of Scotland shareholders who are threatening a £3.3bn lawsuit against the lender and its former directors have been dealt a blow after a US court dismissed similar allegations that the bank misled investors.

Four dead in France shooting

Three people were found shot dead inside a British-registered BMW following a gun massacre that left a young girl fighting for her life at a French alpine beauty spot near Chevaline, in the French Alps.

Democrats restore Jerusalem

After coming under fire for omitting language describing Jerusalem as Israel’s capital, Democrats yesterday swiftly reinserted the language in an attempt to defuse controversy on the eve of President Barack Obama’s speech accepting his party’s nomination. Party convention chairman Antonio Villaraigosa, the mayor of Los Angeles, called three separate voice votes on a resolution reinserting a passage referring to Jerusalem as the capital of the Jewish state.

The new jobs website for London professionals

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OFT launches investigation into the price of petrol at UK pumps BY CATHY ADAMS THE Office of Fair Trading (OFT) yesterday caved in to pressure from MPs and said it would investigate the UK petrol and diesel sector. The review will look at whether reductions in the crude oil price are being reflected in the price at the pumps and lack of competition in the sector. MPs and consumer groups yesterday hailed the decision, with new transport minister Patrick McLoughlin understood to be supportive of the review, which follows continued pressure from MPs.

In July around 60 MPs demanded an investigation into why petrol retailers were reticent to pass on oil cost savings to consumers. Conservative MP Robert Halfon, who has been campaigning for lower fuel prices, said yesterday: “Pump prices keep going up and up, even though there is no oil shortage. Why? We need a proper investigation, just as Germany and America are doing. Britain is being taken for a very expensive ride.” The OFT said it would also look into whether supermarket practices, including when petrol is sold at a loss

in order to attract shoppers into stores, make it hard for independent retailers to compete. The UK’s retail roads fuel sector is worth around £32bn a year. Petrol prices rose by 38 per cent between June 2007 and June 2012, while diesel prices rose 43 per cent. According to Bloomberg’s Gas Price Ranking, the UK is the 10th most expensive region in the world for fuel. The OFT will gather information over the next six weeks, and will publish its findings in January 2013, the month when the postponed 3p petrol tax rise is due to take effect.

BY JAMES WATERSON BORIS Johnson yesterday refused to rule out standing in a parliamentary by-election if the government backs a third runway at Heathrow. Asked whether he was willing to campaign on the issue within the House of Commons, the Mayor told the BBC: “My job is to follow the interests of the people of London.” His comments came as Prime Minister David Cameron joined Labour’s Ed Miliband in backing an independent commission into airport capacity to be led by Sir Howard Davies, the former head of the Financial Services Authority. Despite a pledge to fast-track infrastructure measures to promote growth, Davies may not publish his final report until 2015, postponing the decision until after the next general election. Cameron is stuck in a political bind as he opposed a third runway in the 2010 Conservative manifesto and has at least two more years in coalition with the Lib Dems, who have promised to block any development.

Johnson said the proposal was a “fudgerama” and said he would lead the campaign against expansion of the west London airport. “If a commission were not to report until after the next election we’d have lost a huge amount of time. I don’t think British business would be remotely satisfied with that answer.” Yesterday Cameron told the House of Commons: “While I believe that we need to establish a form of review that will bring parties together and make a decision about airport capacity, I will not break my manifesto pledge.” But transferring responsibility for the decision to an outsider would make it easier to justify a policy U-turn in the future. In addition, the decision to move Justine Greening, a noted opponent of Heathrow expansion, from transport secretary in this week’s reshuffle removes one of the main political barriers to change. London Chamber of Commerce chief executive Colin Stanbridge said: “The last thing we need is another two and half years talking with no action. While this government has dithered business has suffered.”

...while his younger brother is appointed to the government BY JAMES WATERSON



CITY VIEWS Page 10



DAVID Cameron yesterday concluded his first cabinet reshuffle as the government announced a new committee of top-level ministers who will help drive through growth measures across Whitehall. The confirmed list of new ministers contains many new appointments at junior ministerial level, with 29 MPs leaving the government. One surprise inclusion was Jo Johnson, younger brother of Mayor of London Boris Johnson, at the whips office. In a marked contrast with his sibling, Jo Johnson will be tasked with

ensuring Conservatives remain loyal to government policy. Former Goldman Sachs banker Sam Gyimah becomes the Prime Minister’s parliamentary private secretary, while Edward Timpson has joined the Department for Education. Lib Dem Jo Swinson becomes a business minister and Stephen Crabb will work at the Treasury and Welsh Office. Meanwhile George Osborne will head a new growth committee aimed at boosting the economy. Business secretary Vince Cable, Ken Clarke and David Laws are also on the committee.

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Britvic and AG Barr gear up for £1.4bn deal BY MICHAEL BOW TANGO soft drink maker Britvic yesterday revealed it had been approached by AG Barr, maker of Scottish staple Irn-Bru, in a plucky bid to merge the two beverage firms. AG Barr, which is much smaller than Britvic with revenues of £237m versus £1.3bn, said yesterday there was a “compelling industrial logic” for the plan. The proposal, which stock analysts said appeared “well developed”, would see Britvic shareholders own 63 per cent of the new business and AG Barr shareholders take 37 per cent. A new board of directors has already been drawn up, with AG Barr chief executive Roger White set to take on the role of chief executive at the combined group. Two sources familiar with the situation yesterday said they expected current Britvic chief executive Paul Moody to leave the company. The proposal to put Britvic on the

block could also lead to interest from PepsiCo, which has licensed its franchise to Britvic in the UK, and private equity firms, to buy the company. Britvic has been under the cosh this year after it was forced to put out a profit warning in July following a recall of its Fruit Shoot drinks brand which cost the company up to £25m. The move by AG Barr, which has been called “opportunistic” by analysts, would help it crack markets south of the border using Britvic’s supply network in England and Wales.

A.G. Barr PLC 460 p

450.20

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450 440 430 420 30 Aug 31 Aug 3 Sep 4 Sep 5 Sep

BRITVIC AND AG BARR MERGER Pepsi max

Britvic **

£1.3bn*

7up

Tango

SoBe

MANCHESTER United’s share price tumbled further in New York yesterday, after investors took in a range of analysts’ research notes. The stock fell out of bed as soon as the Nasdaq opened, plummeting around three and a half per cent. Despite recovering slightly, the price was down 2.2 per cent at the close of play last night, at $12.90. Some underwriters of the English football club’s initial public offering (IPO), which kicked off on 9 August, were bullish over the shares’ prospects as they released their first

recommendation notes on Tuesday. Jefferies was the most optimistic, slapping a $20 target price alongside its “buy” rating. But yesterday’s market action suggests that investors may be more inclined to believe the bearish side of the argument. Nomura had been more conservative, starting with a $13 target and “neutral” rating. And Kenneth Perkins of Morning Star in Chicago told City A.M. that the stock’s intrinsic value is little more than $10 per share. “I wouldn’t recommend buying until it’s below $10 and several risks make it unadvisable to invest in the

Robinsons

Combined value

J20

£1.4bn

Tizer

AG Barr **

Ownership Structure

AG Barr

37%

Britvic

63%

£237m

KA

IRN-BRU Orangina

Rubicon

Management Team

Chairman Gerald Corbett, chairman of Britvic Chief executive Roger White, CEO of AG Barr

*40% from PepsiCo contract ** 2011 revenues

Deputy chairman Ronnie Hanna, chairman of AG Barr Finance chief John Gibney, CFO of Britvic

ADVISERS CITI AND ROTHSCHILD DAVID WORMSLEY CITI

Britvic is being advised by one of the big beasts of the M&A jungle – David Wormsley from Citi. Known as “The Worm” in financial circles, he is one of the top M&A bankers in the City, having been linked with enormous deals including Ferrovial’s £10bn purchase of BAA and a £41bn restructuring at Shell. He was also responsible for leading Citi as joint global co-ordinator and bookrunner on the Glencore listing in 2011. Most recently he popped up leading the official advisory

Man United’s stock dives again BY JULIAN HARRIS

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stock. You don’t get any voting rights so are relying on capital gains,” Perkins said. The shares floated at $14 in August.

Manchester United PLC $

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team for Glencore alongside Morgan Stanley’s Michael Antakly in the Xstrata deal. Once upon a time Wormsley was Guy Hands’ financial adviser and used to take shooting holidays with him and his family. But the two fell out over a dramatic court dispute when Hands lost a multibillion-dollar lawsuit after he tried to claim Wormsley tricked him into buying EMI. Luckily for Britvic, Wormsley is known as a fierce negotiator. In an email to Hands in 2006 he told his old friend: “I am incapable of not trying to get you to the best possible outcome.” AG Barr is being advised by a team from Rothschild led by Akeel Sachak. He has worked on the sale of Scottish & Newcastle to Heineken and Carlsberg as well as the recent acquisition of Rank Hovis McDougall by Premier Foods.

Choosing the right person to mix the drinks BOTTOM LINE

O

MARC SIDWELL

THERS may be busy discussing plans for a referendum on Scottish independence, but there are signs of a fresh crossborder union between Hemel Hempstead-headquartered Britvic and AG Barr, maker of Scotland’s other national drink, Irn-Bru. If this new act of union goes ahead, it looks good for AG Barr – its revenues are almost five and a half times smaller than Britvic’s, but its chief executive would end up running the group. Still, that may be fair enough. Since taking over the Scottish firm as its first head from outside the Barr family eight years ago, Roger White has seen its pre-tax profit rise by some 140 per cent. Britvic’s chief exec Paul Moody has managed a pre-tax profit increase of 14 per cent since 2005, capped by this summer’s Fruit Shoot recall and the recall of two Ballygowan product batches in Ireland last Wednesday. If the deal comes off, White might just put some real fizz into the resulting British drinks giant.

Bonuses cut at News Corp but Rupert still gets $30m packet BY KATIE HOPE NEWS Corp executives, including Rupert and James Murdoch, had millions cut from their annual bonuses last year because of the phone-hacking scandal. But the two Murdochs were still paid a combined $47m (£29.6m). Rupert Murdoch was paid just over $30m, down nearly $3m on the previous year, while James was paid $16.8m, more than $1m less than the previous year. Deputy chief operating officer

Chase Carey and chief financial officer, David DeVoe, also saw their total remuneration cut. The cuts were detailed in a US regulatory filing. The company’s remuneration committee said that Murdoch and other senior executives should “share responsibility” for the impact of the phone-hacking scandal. However, the committee said this had to be balanced against the overall group performance, which remained strong, boosted by its cable arm.

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US accuses BP of negligence over Gulf spill BP is facing a multi-billion dollar lawsuit from the US government for gross negligence relating to the Macondo oil spill. The Deepwater Horizon disaster, which happened in April 2010, caused BP’s share price to plummet to almost half its value. In a filing to the Department of Justice (DoJ), the US government yesterday accused BP of “gross negligence and willful misconduct” surrounding the operations in the Gulf of Mexico that led to Deepwater Horizon, adding that BP’s arguments in defence were “plainly misleading”. The British oil behemoth denied allegations of gross negligence surrounding the disaster, which killed 11 people and poured crude oil into the sea off Mexico for months. It added in a statement yesterday: “BP believes it was not grossly negligent and looks forward to presenting evidence on this issue at trial in January.” It is understood that the DoJ is seeking around $25bn (£15.7bn) in com-

pensation, while BP is hovering around the $15bn mark. The trial is due to start proceedings in January. Yesterday it was revealed that the oil giant is facing lawsuits from a raft of institutional investors, including Skandia and GAM Funds. BP has pencilled in $38bn of divestments to cover costs relating to the oil spill. Jonathan Jackson at Killik & Co said yesterday that for every $10bn extra in compensation, 35p will be wiped off BP’s share price. The FTSE 100 company’s share price dropped in trading yesterday, to close 2.92 per cent down at 423.85p.

BP PLC 450 p 445 440 435 430 425 420

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Shell charges ahead with its CCS project BY CATHY ADAMS

GETTY

BY CATHY ADAMS

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The miners are demanding that their wages be doubled to 12,500 ZAR (£934) a month

More than 3,000 miners strike again at Lonmin’s Marikana BY CATHY ADAMS MORE than 3,000 striking South African miners launched a fresh attack on London-listed Lonmin’s Marikana mine yesterday, as peace talks between the company’s management, unions and the government continued. It marked the largest protest at Marikana since 44 mine workers were killed during recent clashes with police. The majority of the arrested miners were freed from murder charges yesterday, after they were arrested last month following the altercations.

Police officers were deployed to the fresh strike at Marikana, armed with tear gas and assault rifles, although the protestors retreated after two hours. It is thought the miners wanted a hike in salary to 12,500 ZAR (£934) a month, more than double their current salary. Lonmin said that 4.2 per cent of workers reported for work yesterday across all mine shafts. Lonmin has seen its share price plummet over the past month, as production was halted for the fourth week. Its shares closed down 6.2 per cent yesterday at 529.5p.

ANGLO-DUTCH oil giant Shell said yesterday it will go ahead with its $1.35bn (£840m) carbon capture and storage (CCS) project for an oil sand operation in Canada. The flagship Quest project is designed to reduce carbon dioxide emissions at its 255,000 barrel a day Scotford oil sands project in Canada. It is to be built on behalf of Shell’s joint venture partners at the field, with 60 per cent funded by Shell and 20 per cent by Chevron and Marathon Oil. Shell chief executive Peter Voser said yesterday: “We will need all sources of energy to meet world demand in the coming decades. “By 2050 at least 65 per cent of our energy will still come from fossil fuels. So CCS will be important to manage climate impacts,” he added. The Quest project will capture more than 1m tonnes of carbon dioxide each year from the site near Edmonton, and transfer it 1.2 miles underground. It will take about 30 months and up to 700 workers to construct the project. Oil sands emit millions of tonnes of carbon dioxide each year. Shell is also working with other countries – including projects in Norway and Australia – to develop CCS.

Protection for your mobiles and gadgets with Tech Pack, available on Barclays Features Store. Barclays Features Store is an interactive hub that lets you shape your current account around your life. All you have to do is add the Features you want and leave out the ones you don’t. So, if you love your gadgets, you could add a Tech Pack and insure them for £ 7 .50 per month. Find out more in branch, on 0800 1583215 or at barclays.co.uk/featuresstore

Terms, conditions and exclusions apply. The policy excess varies on the type of mobile phone you claim for and the type of claim you make. Mobile Phone Insurance covers up to tw o of your family’s mobiles or smartphones. Maximum of tw o successful claims per account holder w ithin a 12 month period. Please read the Policy D ocuments so you know w hat’s included and w hat’s not. Features w ithin the Features Store are available on all Barclays current accounts except for Cash Card and accounts for children. My Packs are only available to Barclays Bank Account and Premier Current Account customers. The cost of Tech Pack for Premier Current Account customers is in addition to the £ 10 per month Premier Current Account Fee. Barclays Bank PLC is authorised and regulated by the Financial Services Authority (FSA). Registered No 1026167. Registered Office: 1 Churchill Place, London E14 5HP.

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UK eighth most competitive in global survey BY BEN SOUTHWOOD THE UK jumped two places in this year’s global competitiveness report, released yesterday by the World Economic Forum (WEF). Britain placed eighth in the world for competitiveness, leapfrogging Denmark and Japan, based on marginal improvements across the board – except its macroeconomy. The macroeconomic environment worsened by 0.5 points according to WEF’s index, as the UK slipped back into recession, with the world’s 137th best – fifth worst – current budgetary situation. One hundred and twelve countries had a better gross national savings; 64 had better inflation, and 126 had a better central government debt situation, according to the WEF. However, the Treasury jumped on the results as evidence its policies were working. “We welcome the WEF’s assessment,” a spokesperson said, “The UK is becoming more competitive thanks to this government’s reforms: creating a more

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flexible and educated workforce; simplifying our tax system and reducing the main rate of corporation tax as well as scrapping burdensome regulation and simplifying planning rules.” However, although the UK lost six places in the total tax ranking, it gained 17 when considering the extent and effect of taxation instead. And while Britain dropped 13 places when ranking how quickly one can start a business, the UK has got no worse – it’s just that other countries have cut more red tape. The UK also improved 11 places in terms of the burden of government regulation – but it remained only 72nd best in the world. The real standout positive factors were in education, skills and training. The UK was ranked first in the world for the quality of its management schools, up from second last year. Similarly, Britain remained second in university-industry research and development collaboration, and held third place in the quality of its scientific research institutions.

Allocated seats for all Easyjet flights for a fee

UK RISES UP COMPETITIVENESS LEAGUE

BY KASMIRA JEFFORD

GCI SCORE

Not covered

5.39 to 5.72 5.00 to 5.39

4.60 to 5.00 4.20 to 4.60

3.80 to 4.20 2.78 to 3.80 *all scores out of 7

THE UK DID WELL IN SOME INDICES...AND NOT SO WELL IN OTHERS 1ST

1ST

3RD

PLACE

PLACE

PLACE

QUALITYOF MANANGEMENT SCHOOLS

FINCANCIAL MARKETS LEGAL RIGHTS

QUALITYOF SCIENTIFIC RESEARCH INSTITUTIONS

72ND

97TH

BURDEN OF GOV. REGULATION

SOUNDNESS OF BANKS

113TH

137TH

GROSS NATIONAL GOVERNMENT SAVINGS BUDGET BALANCE

THE MOST PROBLEMATIC FACTORS FOR DOING BUSINESS Accessotfina nci ng Taxrates Taxregulations Ine cientgovernmentbureaucracy Inadequatelyeducated workforce Inadequatesupplyofinfrastructure Restrictivelaborregulations In ation Policyinstability

15.3% 15.3% 10.2% 8.6% 7.9% 6.9% 6.4% 5.8% 5.5%

TRAVELLERS flying EasyJet will soon be spared of lengthy queues and scrambling to secure a good seat after the budget airline announced yesterday it is to introduce allocated seating on all flights. The company said passengers will have the option of choosing from three brands of pricing depending on where they want to sit – £12 for leg room, £8 for seats up at the front or £3 for any other seat. Anyone who chooses not to select a seat will be given one when they check-in online or at the airport. The move comes after a trial carried out this summer during the airline’s busiest time, to stress test the new systems. EasyJet said the trial showed that allocated seating can be delivered “at the same time as maintaining strong levels of on-time performance and without adding cost.” Some 60 per cent of customers said they are more likely to use EasyJet in the future as a result of the improved boarding experience. “Our customers asked us to trial allocated seating and we are really pleased with the positive passenger feedback during the trial,” chief executive Carolyn McCall said. “As importantly, we have shown that we can do so while delivering strong on time performance – the most important driver of passenger satisfaction.”

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Profits surge at Hargreaves as founder leaves BY MICHAEL BOW HARGREAVES Lansdown founder Peter Hargreaves yesterday criticised big consumer companies for failing to treat customers as individuals. Hailing a “sparkling” set of full year results for the firm, he said clients’ trust in the firm had boosted its performance, a factor he said was all too readily neglected by other consumer and financial firms with lots of customers. “One of the problems with other firms is they have so many customers that they find it easier to ignore them all, because any individual customer is so worthless in their eyes,” he said. “It’s like telephone companies, each individual customer is so unimportant that they don’t look after them.” The company yesterday said it had boosted pre-tax profits by 21 per cent and increased revenues by 15 per cent in the full year. It also upped its total dividend by 20 per cent to 22.59p. Hargreaves said: “If we’d had a great investment envi-

ronment, those results would have been good. The fact we’ve had a bad investment environment means the results we’ve had have been sparkling.” Yesterday’s results were accompanied by an announcement that the firm’s co-founder and major shareholder Stephen Lansdown, 59, was stepping down from his non-executive role on the board. The move brings to an end a 31 year partnership between Lansdown and co-founder Peter Hargreaves, which started the firm together in 1981. Lansdown will step down in November.

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Direct Line to cut 900 jobs ahead of IPO BY JAMES WATERSON

PROFILE: STEPHEN LANSDOWN WHEN Peter Hargreaves and Stephen Lansdown began work at the same Bristolbased investment business back in 1979, there was no inkling it would yield one of the most successful entrepreneurial business partnerships of the last 30 years. Just 20 months after meeting, the two men started trading from a bedroom in 1981. The venture was called Hargreaves Lansdown. Now, three decades later, the firm is a FTSE 100 unindebted giant, booming along with double digit profit growth. Lansdown, 59, says it is now time to step away from the firm. He leaves a rich man. His 20 per cent stake in the business is worth around £600m. This year alone he stands to collect £21.6m, after the firm raised its dividend by 20 per cent. Lansdown, Hargreaves’s junior by six years, first qualified as a chartered accountant with

Touche Ross & Co in 1975 and is noted for his interest in football. He says his life ambition is to see Bristol City Football Club in the Premier League and he is a leading shareholder in the club. He even went as far as to sell a 4.7 per cent stake in Hargreaves Lansdown for £47.2m, which he put towards the cost of building Bristol City's new football stadium. His most recent role at Hargreaves Lansdown was as non-executive director, having stepped down as chairman in 2009. “He’s showing the ultimate faith in the management team, because without a seat on the board he can assess how good the board is,” Peter Hargreaves said yesterday. Hargreaves, who said he planned to party at Lansdown’s 60th birthday bash next month, now carries the mantle as the sole founder left on the board.

DIRECT Line Group yesterday announced plans to sack 891 workers in the “first phase” of a substantial cost-cutting programme ahead of the insurance group’s London float, expected next month. Around 500 sales staff will go with the closure of a call centre in Stockton-on-Tees, near Middlesbrough, with the work transferred elsewhere in the UK. Several hundred more jobs are being targeted across the country, including roles at the firm’s head office in Bromley and IT functions. A spokesman told City A.M. that the reduction in sales staff was possible thanks to efficiency savings and a decline in the number of people who purchase insurance over the telephone. “We have not made these proposals lightly and fully understand the impact this will have on our people,” said chief executive Paul Geddes, who last month pledged to cut £100m from his company’s annual costs by 2014. Direct Line is currently owned by RBS, which is being forced to sell the subsidiary as one of the conditions attached to its government bailout. The bank has said it intends to float some Direct Line shares in October, despite the stagnant market for London IPOs.

Make payments and transfer money on the go with our Mobile Banking app, available on Barclays Features Store. Barclays Features Store is an interactive hub that lets you shape your current account around your life. All you have to do is add the Features you want and leave out the ones you don’t. So, if you want to be able to manage your money on the move, choose the Barclays Mobile Banking app. Find out more in branch, on 0800 1583215 or at barclays.co.uk/featuresstore

Terms, conditions and exclusions apply. Features are available on all Barclays current accounts except for Cash Card and accounts for children. My Packs are only available to Barclays Bank Account and Premier Current Account customers. Barclays Bank PLC is authorised and regulated by the Financial Services Authority (FSA). Registered No 1026167. Registered Office: 1 Churchill Place, London E14 5HP.

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EC takes next step in campaign to make Libor-fixing a crime BY TIM WALLACE TOP REGULATOR Michel Barnier yesterday launched a consultation on the future of Libor and other similar key lending rates as he seeks to clamp down on financial manipulation across the EU. The European Commission (EC) wants to make rate-rigging a crime, alongside insider dealing and market manipulation – and that could mean jail terms for rogue bankers in future. But the consultation will also

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seek ways to change the way market indices and benchmarks are compiled, as well as studying governance and transparency around the measures. “The international investigations underway into the manipulation of Libor have revealed yet another example of unacceptable behaviour by banks. Doubts about the accuracy and integrity of indices can undermine market confidence, cause significant losses to consumers and investors, and distort the real economy,” said

Barnier. “The Commission has already acted quickly to amend its legislative proposals on market abuse. However, changing the sanctions regime alone may not be sufficient: wider work is required to regulate how indices and benchmarks are compiled, produced and used.” Although Libor is the most highprofile of the rates being examined, the consultation will also cover Euribor as well as commodities and real estate price indices, the EC said.

MASSENET TO CHAIR BRITISH FASHION COUNCIL

NET-a-Porter founder Natalie Massenet has been appointed to chair the British Fashion Council (BFC), replacing Harold Tillman, who has held the position since 2008. Massenet sold a stake in Net-a-Porter to Swiss luxury group Richemont earlier this year.

Top MP hits out at Barclays tax dodge claims BY TIM WALLACE BARCLAYS’ evidence to the Treasury Select Committee of MPs on tax avoidance measures directly contradicts that given by the chancellor, the committee’s influential chairman Andrew Tyrie declared today, demanding an explanation from the bank. HM Revenue and Customs retrospectively clamped down on the bank in February after it reduced its tax bill by roughly £300m in a debt buy-back scheme. Barclays’ then-chief executive Bob Diamond said the bank understood HMRC was familiar with such actions, and so was shocked when the authorities acted against the bank when it voluntarily disclosed the details the HMRC. But George Osborne told the Committee this was the first time they had seen such a scheme, and so were within their rights to shut it down retrospectively. As a result of this apparent contradiction, Andrew Tyrie said “If Barclays thinks the chancellor is mistaken, it should explain why.” When City A.M. questioned the bank it stood by Bob Diamond’s explanation of events.

However, Tyrie did not give the government the all clear either, blaming the tax system for the row. “There can be little doubt that those opportunities for avoidance – the unintended consequences – exist because the law is so complex,” he said today. “There is, therefore, something that might be done about it: simplify the tax system.” Meanwhile Barclays announced the appointment of Curt Hess as the boss of its retail and business banking operations in Europe. It is the first appointment by new chief executive Antony Jenkins, who previously headed up the bank’s whole retail arm, as well as standing in in a caretaker role in Europe. However Barclays has also been forced to reveal the names of two staff who lost their jobs over the Libor scandal. The bank had to formally notify the US Financial Industry Regulatory Authority that executive Ritankar Pal was “discharged” on 30 July because he failed “to properly supervise individuals on his team.” And New York-based derivatives trader Dong Kun Lee was also ousted for allegedly engaging in “communications involving inappropriate requests relating to Libor.”

City job vacancies edge up yet market remains down on 2011 BY JULIAN HARRIS THE CITY jobs market surprisingly picked up in August as the Olympic Games failed to dent activity in the Square Mile, a top recruiter said this morning. Yet Morgan McKinley, which published the research, also warned that financial sector employment prospects remain worse than at this time last year. There was a five per cent lift in London’s financial services vacancies last month, compared to July, the report showed.

However, job availability was a depressing 34 per cent lower than in August 2011. “Professionals with a regulatory bias, namely those in risk, compliance and audit are still in demand more than other skill sets,” added Morgan McKinley’s Hakan Enver, citing “the stricter regulatory stance” of authorities that regulate the industry. Overall the jobs market remains sluggish, Enver added, blaming “Eurozone concerns, the double dip recession as well as overall reductions in trading flows.”

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Battersea Power Station’s chimneys will be taken down next year

Battersea plans move closer as owners move in BY KASMIRA JEFFORD THE NEW Malaysian owners of Battersea Power Station revealed yesterday that work on the £8bn scheme is set to get under way this year after completing the purchase of the historic site. SP Setia, Sime Darby and the country’s Employees’ Pension Fund – officially took ownership of the site yesterday after paying £400m to buy it out of administration in July. Europe’s largest brick building, has been derelict since it was decommissioned in 1983 and has seen a string of developers try and spectacularly fail to revive it. The consortium said they will push ahead with existing plans approved under its previous owner, which allows for 3,500 homes, 1.7m square feet of offices, shops, a hotel and a new park. They also confirmed Robert Tincknell, who led the project under its previous Irish developers Treasury Holdings, as chief executive of the

MATTHEW ARGENT JEFFERSON YOUNG

DJAMOL ARIPOV LONDON BRAND MANAGEMENT

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new vehicle – the Battersea Station Development Company. “Before the end of the year you are going to see cranes, diggers and other activity here for the first time in 25 years,” said Tincknell. The first phase of the redevelopment includes the building of 800 apartments next to the power station as well as the £50m refurbishment of the power station and is expected to be completed by 2016. The four iconic white chimneys will be demolished one at a time before being built back up again in a process that will cost £11m and take three years to complete. The first batch of homes will go on sale next Spring and the consortium aims to sell the 800 flats by September, using the proceeds to fund the rest of the scheme. They are confident that, with the building’s iconic status and the buoyancy of London’s market, the flats will sell themselves. They will also have to pay £203m towards extension of the Northern Line.

WHAT DO YOU THINK OF THE Interviews by Will Calder RESHUFFLE? Based on public opinion and not necessarily his record I was surprised Osborne kept his job. A fresh face in the higher ranks of the government would have been good. But I would still have him over Ed Balls any day.

I’m surprised about the government reshuffle; I think they are overlooking the Mayor of London. I’m a big fan of Boris when it comes to the Heathrow runway and I think he has the right plans for London. I think replacing the minister for Transport was symbolic As a frequent flyer I’m concerned with London’s capability to keep up with demand and I think another runway in the city would be a big step forward.

These views are those of the individuals above and not necessarily those of their company

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Double-dip for Eurozone as it slumps again BY BEN SOUTHWOOD THE EUROZONE economy suffered an even more severe downturn in August than at first thought, survey data from Markit revealed yesterday. The initial “flash” purchasing managers’ index (PMI) for euro area economic output in August was 46.6, marginally up on July’s 46.5 – but yesterday’s figure was 46.3. Any figure below 50 indicates contraction. Activity was slightly more positive than output – at 47.2 – but was also lower than the initially recorded 47.5, and also deteriorated compared to July. “The final August PMI came in...slightly below its earlier flash estimate, leaving the Eurozone economy on course to fall back into technical recession in the third quarter,” said Rob Dobson at Markit. “Sharp declines in new orders at manufacturers and service providers, plus further job losses, mean that there is little prospect of a sustained improvement in economic conditions over the near term,” Dobson warned. Spain suffered a particularly harsh

blow, with its 54th successive month of employment decline, and overall activity still nose-diving, though the index was up 0.3 at 44. But the pain was spread across the currency bloc, as even Eurozone powerhouse Germany felt the strain. Germany’s composite output declining faster in August, and business activity going from slight expansion in July to significant decline in August. “The looming concern is the increasing signs of weakness coming out of Germany, the nation others were looking to as a pillar to prop up growth in the broader currency region,” Dobson added.

Eurozone recovery hamstrung by debt crisis 65 PMI Output Index, 50 = no change 60 GDP 55 50 PMI 45 40 35 30

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IN BRIEF Pocket money squeezed in slump n The amount children receive each week in pocket money has fallen back this year, after recovering from 2010’s seven-year low in 2011, a survey showed today. On average, children are given £5.98 a week by their parents, down from last year’s £6.25, Halifax said in it is annual pocket money survey. But children in London have weathered the storm relatively well, losing only four per cent of their pocket money, from an already high base. Boys continue to be given more than girls, with the gap widening in 2012 to 37p per week, amounting to £19.24 less per year for girls.

Eurozone shoppers guarded their wallets more closely in July, especially in crisis-hit Spain

Ireland sees shop sales surge as crisis-hit Spain suffers fall BY BEN SOUTHWOOD RETAIL trade slipped in the Eurozone in July, down from a slight increase in June, official Eurostat data revealed yesterday. The total volume of retail trade fell 0.2 per cent across the 17 euro area countries, having increased by 0.1 per cent in June. Though this overall picture was fairly flat, it hid a 0.9 per cent rise in non-food volumes, and a 0.9 per cent fall in food, drinks and tobacco sales. There was also divergence between different countries’ experiences: sales in Ireland

climbed 1.7 per cent as it recovers after its short, sharp, austere recession, whereas in crisis-hit Spain volumes dropped off 1.9 per cent. The generally gloomy picture was highlighted by the yearly figures, which showed overall sales down 1.7 per cent, driven by collapses of 7.6 per cent in Portugal and 7.3 per cent in Spain. “The prospects for consumer spending in the Eurozone look troubling,” warned Howard Archer at IHS Global Insight, pointing to lagging consumer confidence and employment.

Narrow money continues to grow n Narrow money continued its steady growth into August, Bank of England data revealed yesterday. There were 0.4 per cent more notes and coins sloshing about in the economy this month, compared to July, putting the total supply 5.1 per cent up on August last year. Simon Ward, economist at Henderson, told City A.M. that healthy narrow money supply growth usually precedes a pick up in economic activity.

Indian banks hit by bad loans n Indian banks are being hammered by large numbers of non-performing loans (NPLs), Fitch revealed yesterday. Cumulative gross NPLs at the biggest five Indian banks, who together control around a third of the banking system's total assets, rose 62 per cent in loans maturing in quarter one 2013, compared to quarter one 2012.

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THECAPITALIST

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Life in the City all mapped out for you As well as scale models of developments past and present that have defined the City’s progress, the Developing City Exhibition has asked three teams of architects to put together their visions of London in 2050 – including a park running all the way from Hampstead to the City along the route of the old River Fleet, and a de-carbonised City with pedestrianised streets, more green space and a new financial centre at Aldgate.

Perhaps you’ll also find the answer to one of The Capitalist’s most burning questions – why every new building that springs up in London has to be given a bizarre nickname? We already have the cheesegrater and the walkie talkie, and no sooner had WR Berkley applied for permission to build a new 35-storey tower by Leadenhall market yesterday than it had already been given a rather gruesome moniker – the Scalpel.

FOR those of you who missed out on the chance to snap up City Gent Wenlock when the auction closed last week, worry not. Though lots in the auction are going fast there are still around 10 mascots left – including surely London’s most useful legacy mascot, covered in print from the capital’s famous A-Z map. Watch out too for a number of Olympic and London 2012 banners signed by Boris Johnson, all on sale to raise money for the Mayor’s Fund for London.

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YOU work there everyday, and probably spend more time surrounded by its office buildings than your own four walls, but how much do you really know about the Square Mile? A lunchtime trip to the Walbrook Building on Cannon Street this week might help you find out, as until Saturday it’s home to an exhibition exploring the link between the architecture of the City of London and its success as a business centre.

LONDON’S MOST USEFUL WENLOCK UP FOR GRABS

The new jobs website for London professionals

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Theo Fennell in takeover talks with EMI Capital BY KASMIRA JEFFORD THEO Fennell, the Aim-listed jeweller, saw its shares jump nearly 30 per cent yesterday after it confirmed it is in takeover talks with EME Capital. The company said discussions were at a “very preliminary” stage, and may or may not lead to an offer being made. A spokesperson for the jeweller declined to comment further.

The group sells jewellery and watches designed by its founder Theo Fennell – also known as the “King of Bling” – who still owns a 16.1 per cent stake in the company. The chain has been loss-making since 2009 after struggling to recover from the recession and has recently turned its attention to China and emerging markets to drum up sales. EME, a private equity and financial advisory group set up in 2010, must either announce a firm intention to make an offer or walk away by 3 October. Shares closed up 27.7 per cent at 15p.

Theo Fennell with model Laura Bailey

3i cuts further stake in Norma after placing BY MICHAEL BOW

The so called “Starbucks of Sweden” was bought by Norway’s Herkules Private Equity III

Sweden’s Espresso House sold by UK owners to Norway fund BY MICHAEL BOW COFFEE chain Espresso House, known as the “Starbucks of Sweden”, has been sold by its UK private equity owners Palamon Capital Partners to a Norwegian private equity fund, it was announced yesterday. The popular coffee haunt, which has 120 coffee bars dotted around Sweden, was snapped up by Norwegian fund Herkules Private Equity III after posting annual

CITY A.M. | OUR SHADOW MPC VOTES 8-1 FOR NO NEW ACTION ALLISTER HEATH | CITY A.M. “Hold policy on interest rates and QE. Instead of coming up with fancy schemes to bring interest rates down even further, the Bank needs to realise that tight money isn't the problem. We need supply-side reforms – such as today’s housing shake-up – not ever easier money.”

GRAEME LEACH | INSTITUTE OF DIRECTORS “No change to interest rates or QE. The monetary policy committee’s preferred broad money supply measure has picked up recently and we need a clearer trend in this before introducing any change in policy.”

SIMON WARD | HENDERSON “Hold. The Bank of England may have overstimulated – monetary trends were signalling an improved economic outlook before the July extension of QE, while CPI inflation may rebound to three per cent plus by early 2013.”

GEORGE BUCKLEY | DEUTSCHE BANK

VICKY PRYCE | FORMER GOVT ADVISER

“With some of the business survey data pointing upwards and the asset purchase programme ongoing, there seems little need for additional monetary loosening this month”

“Hold but keep open possibility for further easing. Europe weakness persists and forecasts suggest a fall in UK GDP this year. Any infrastructure and housing stimulus will take time to be felt.“

VICKY REDWOOD | CAPITAL ECONOMICS “Cut interest rates to 0.25 per cent and continue with the extra QE already in progress. The economy clearly needs more support and the stimulus undertaken so far won’t be enough to get the recovery back on track.”

HOLGER SCHMIEDING | BERENBERG BANK “Hold policy. The MPC should leave all options open to ease policy further. But as the current asset purchase programme is still running, the MPC has no need to decide on further actions at this meeting already.”

Analysts don’t forsee new QE BY BEN SOUTHWOOD CITY analysts expect the Bank of England to continue its wait and see approach to monetary policy in its September meeting today, keeping rates constant, and continuing to carry out previously announced asset purchases. Martin Beck at Capital Economics said that the positive news in the service sector would provide extra reason for the Bank to sit on its hands and wait before engaging in any new major policy initiatives. Chris Scicluna at Daiwa Capital agreed. “The next move from the monetary policy committee, almost certainly another increase in gilt purchases, is not likely until November,” he said.

TREVOR WILLIAMS | LLOYDS TSB “Keep rates on hold but be prepared to cut to zero and maintain QE. Downside risks to the economy have materialised and there is a risk things get worse before they get better.”

ROSS WALKER | RBS “The Bank is mid-way through the £50bn of gilt purchases and there is no compelling reason to raise the purchase target. Similarly, the benefits of a Bank Rate cut would be modest.”

IN BRIEF Saga says QE harmed over 50s

Woman dies in Coq d’Argent fall

n The older generation saw

n A woman fell to her death from

massive cuts in their real income due to the Bank of England’s quantitative easing (QE) programme, research released today claims. The report, commissioned by Saga and prepared by the Centre for Economics and Business Research (CEBR), says that the boost QE gave to assets was not enough to outweigh the hit to annuities from drastically reduced gilt yields. It also points out that high inflation – which QE contributed to – disproportionately affected over 50s, cutting their real incomes sharply. Saga boss Ros Altmann told City A.M. she hoped the report would spark “an honest debate,” about the asset purchasing programme.

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the roof terrace of French restaurant Coq d'Argent in the City on Tuesday night when she is reported to have taken a sip of wine before stepping over the edge of the terrace, plunging approximately 80 feet to the ground. The woman, believed to have been Asian and in her 30s, was pronounced dead at the scene, a short distance from Bank underground station. Her name has not been released by police. It is thought to be the third such death in five years. The restaurant, which opened in August 1998, specialises in French cooking. David Loewi, managing director of D&D London, which owns Coq d'Argent, said: “It is a very sad case, but we cannot comment further as a police investigation is under way."

revenue increases of 30 per cent to kr560m (£52.3m) under Palamon’s ownership. Since 2006, the chain has grown from a small 22 outlet coffee chain in the south of Sweden to expand rapidly into the capital Stockholm and the rest of the country. “For us, this investment has returned 3.4x on invested capital,” Palamon partner Dan Mytnik said. Palamon, which is based in King Street in Piccadilly, manages around €1.1bn of funds.

UK private equity firm 3i sold €77m (£61m) of shares in German engineering firm Norma Group to institutional investors yesterday – taking its stake from 73 per cent to 16.7 per cent in just 18 months. 3i announced it had placed four million shares for a price of €19.25 per share with investors. The news prompted Norma to fall from €19.95 to €18.84 on the Frankfurt stock exchange. It ended the day at €19. 3i, which invests in mid market private equity, infrastructure and debt management, maintains its position as Norma’s biggest shareholder with an aggregate holding of 16.7 per cent. It floated Norma onto the market last April with a €669m market cap, taking its share in the company down from 73 per cent to 31 per cent – a 46 per cent reduction. The latest move follows the same trend and reduces its ownership of the company by a further 46 per cent. Norma was formed in 2006 through the merger of German firm Rasmussen Group and the Swedish company ABA Group.

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Ashley’s payout plan is rejected by shareholders BY KASMIRA JEFFORD SHAREHOLDERS in Sports Direct yesterday rejected a proposed “superstretch” scheme that could have netted its founder Mike Ashley a multi-million pound bonus. Under the proposals tabled at yesterday’s annual general meeting Ashley would have received 8m shares worth around £25m at yesterday’s share price if the retailer hit a series of targets over the next three years. While over 60 per cent voted in favour of the scheme, the level of proxies did not reach the required 75 per cent necessary for a special resolution. Ashley was not allowed to vote his holding. The Newcastle United football club owner owns 71 per cent of Sports Direct’s equity and receives no pay for his role as executive deputy chairman. Dave Singleton, chairman of the remuneration committee, said: “As a board, we are very disappointed that this resolution was not passed, however we respect shareholders’ views.” He said new scheme with further performance criteria will be proposed to shareholders at a future meeting.

The outcome of the AGM came after Britain’s biggest sporting goods retailer said that sales jumped 25 per cent to £519m in the first quarter of the year, while gross profits rose 20.4 per cent to £211.1m. Dave Forsey, chief executive, said trading since the end of July has remained equally strong, with Great Britain’s strong performance during the Olympics helping to boost UK sales. The group, which has around 400 UK stores, has seen shares rally almost 50 per cent this year. Its performance contrasts with that of struggling rival JJB which put itself up for sale last week.

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IN BRIEF Prezzo toasts strong first-half

Investors rejected a bonus scheme that would have landed Mike Ashley a £25m bonus

ANALYST VIEWS

Interviews by Kasmira Jefford

WERE SPORTS DIRECT’S RESULTS IN LINE WITH EXPECTATIONS?

PHILIP DORGAN PANMURE GORDON

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Knock-out numbers from Sports Direct. It has clearly fully-capitalised on the opportunities that the summer of sport has presented. We remain ‘Buyers’, with a target price of 350p. We think that there is also a danger that it could become an internet stock, as online penetration races to 20 per cent of sales.

ANDREW WADE NUMIS

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Sports Direct is a clear market leader, set to continue delivering share gains from competition weakness, with international growth, a strong online operation and (according to management) either an acquisition or special dividend to come this year...We reiterate our ‘add’ recommendation.

FREDDIE GEORGE SEYMOUR PIERCE

Following this update, we are provisionally retaining our full-year 2013 pre-tax profit forecast of £195m...Over the medium term, the company should benefit from recent acquisitions, capacity coming out of the market (less important) and a major opportunity to develop internet sales.

n Italian restaurant chain Prezzo posted a jump in first-half revenues and profits as it continues to roll out its expansion programme. Sales rose 14 per cent to £68.1m in the 26 weeks to 1 July while adjusted pre-tax profits increased by four per cent to £7.6m. The company opened 12 restaurants in the period bringing its estate to 193 and aims to have opened around 25 by the end of the year. Chairman Michael Carlton said: “With the landmark of 200 restaurants fast approaching, we have been strengthening the Prezzo team and increasing investment in training, marketing and other support functions within the business.” He added that the Olympics and the Jubilee had resulted in greater peaks and troughs in trading and presented “both opportunities and challenges for restaurant operators.”

Patron eyes Europe with new fund n Patron Capital, the real estatefocused private equity group, has raised €880m (£633.5m) for a new fund, as investors continue to tap into distressed debt opportunities in Europe. Patron said Fund IV will target distressed property companies, hotels and leisure and healthcare. It aims to generate a rate of return of 17 per cent to 22 per cent gross over three to five years. The group has already invested 15 per cent of the fund, with initial investments including its £38m acquisition of seven luxury hotels that were formerly part of the Von Essen group and the Motor Fuels Group chain of petrol stations.

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Gazprom gearing up to fight EU competition probe into gas sales BY CITY A.M. REPORTER RUSSIA’S Gazprom said yesterday it was ready to talk after the European Union launched a competition probe into its gas sales, but was armed with legal and political reasons why the EU should back off. The European Commission launched the probe on Tuesday into suspicions that Gazprom, more than 50 per cent held by the Kremlin, was hindering the free flow of gas across the EU and imposing unfair prices on its customers by linking the price of gas to oil prices. Gazprom, which generates most

of its 3.2 trillion roubles (£62bn) of gas sales in Europe, said it abided by all appropriate laws in the EU and everywhere it operated, including price mechanisms, and prepared the ground for a fight by stressing its strategic importance to Russia. “We hope that during the investigation ... the fact that Gazprom, set up beyond the EU jurisdiction, is a company, bestowed ... in accordance with the Russian law, with a status of a strategic organisation controlled by the state, would be taken into account,” Gazprom said. Political tensions between the EU and Russia over gas supply are

nothing new. Gazprom supplies over a quarter of Europe's gas consumption, and several EU states rely on it for most of their needs and are locked into long-term contracts, in some cases of up to 30 years. Last year, the Commission raided the offices of several Gazprom units in Europe to investigate their involvement in supply, transmission and storage of natural gas. A Commission official said at the time the raids were part of an EU effort to wean itself off reliance on Russian gas. Gazprom expects to export 150bn cubic metres of gas to the EU this year, unchanged from 2011.

IAG boosted by August jump in premium traffic BY HARRY BANKS INTERNATIONAL Airlines Group (IAG), the owner of British Airways and Iberia, yesterday said its group traffic measured in revenue passenger kilometres rose five per cent year-on-year in August, helped by 12.6 per cent growth in premium traffic. The group said that non-premium traffic grew by 3.9 per cent, while its capacity measured in available seat kilometres rose by 5.6 per cent. The company also said that underlying market conditions were unchanged from guidance given at its recent second-quarter results, with trading conditions at its London hub remaining firm. However, it said that its performance at Madrid continued to be impacted by weak economic conditions, with short-haul traffic particularly affected. The performance statistics cover British Airways, including Bmi Mainline and Iberia.

NEWS

Christian Louboutin wins right to protect distinctive red soles BY CITY A.M. REPORTER THE bright red soles on French footwear designer Christian Louboutin's high-heeled shoes are so distinctive they deserve trademark protection, a US appeals court has ruled. A three judge panel at the 2nd US Circuit Court of Appeals in New York yesterday reversed a lower court’s finding that a single colour could not be trademarked in the fashion industry. Paris-based Louboutin, whose pumps have graced many famous feet, sued rival Yves Saint Laurent (YSL) in April 2011 in Manhattan federal court over what he claimed is his signature use of lacquered red on shoe soles.

Shanta Gold finds Tanzanian gold n East African gold mining company

Shanta Gold yesterday revealed “encouraging” exploration results from its Lupa gold field in Tanzania. Shanta signed a joint venture agreement with Great Basin Gold last year to explore Lupa Goldfields, the second largest gold field in the African country. Shanta said it had found nine prospect areas with good gold values. Despite the positive update, the shares fell 2.48 per cent in trading yesterday to close at 29.5p.

Polymetal looks for partnership n Polymetal yesterday said it was

looking for a joint venture partner to explore its Tamunier project in Russia, after some disappointing exploration results. It said it had found some gold in 50m tonnes of ore, but the project did not fit with the company’s strategy of looking at higher-grade assets, so it would consider a partnership or a sale of the Russian operation.

Rio sells aluminium business n FTSE 100 miner Rio Tinto has finalised

International Consolidated Airlines Group 143

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In August 2011, Manhattan federal judge Victor Marrero denied Louboutin’s request for a preliminary injunction that would have prevented YSL from selling pumps with red soles. But at yesterday’s ruling, the appeals court panel said Louboutin’s long-standing use of the red sole was “a distinctive symbol that qualifies for trademark protection”. However, Judges Chester Straub, Jose Cabranes and Debra Ann Livingston limited Louboutin’s trademark to shoes where the sole stands out in contrast to the rest of the pump. The finding would allow YSL to produce a monochrome red shoe with a red sole, the opinion said.

RICHEMONT SEES LUXURY SALES BONANZA SLOW IN BRIEF

IAG also said that its bmibaby business, which it had already announced will be wound down, will be formally closed when its last flight departs on 9 September. IAG also revealed new routes for its airlines. Iberia Express will run a new route between Madrid and Amsterdam, while British Airways is launching a new service to Colombo, Sri Lanka from Gatwick starting at the end of March next year. IAG’s shares closed 0.1 per cent lower yesterday at 139.7p.

144 p

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LUXURY firm Richemont, headed by Johann Rupert (above), said Asia sales slowed markedly in the first half of the year, rising 12 per cent compared to 46 per cent in the year to March. Sales in Europe grew at a faster pace of 19 per cent, down from 20 per cent in 2011-12.

the $151m (£95m) sale of its North American arm of the aluminium wire and cable manufacturer Alcan Cable business to General Cable Corporation. Meanwhile, the sale of its Tianjin operation in China is expected to close later this year for $34m. It follows the plans announced last year by the mining giant to sell 13 aluminium operations in Australia, Europe and the US to reduce the Alcan business.

buys Brazilian electronics Hibu’s rollercoaster continues Lenovo firm CCE to double market share as major shareholder cuts stake BY CITY A.M. REPORTER

BY MICHAEL BOW TROUBLED Yellow Pages publisher Hibu yesterday saw its share price surge back as much as 50 per cent from Tuesday’s losses as it officially unveiled a committee of creditors tasked with restructuring the ownership of the firm. The firm confirmed reports that Alcentra, GE Corporate Finance Bank, Gruss Asset Management, Blackstone’s GSO Capital, QP SFM Capital and the Royal Bank of Scotland had been appointed to form a co-ordinating committee of lenders to represent the firm’s

creditor base. Shares in the FTSE 250 listed company bounced back from Tuesday’s low of 0.37p to hit 0.61p yesterday. However, this trails the recent high of 1.24p price on Friday afternoon following news the firm had won a reprieve from lenders to stop it breaching its debt limits. In a sign of possible shareholder nervousness over a mooted debt for equity restructure deal, the firm’s biggest shareholders, asset manager Invesco, on Tuesday reduced its holdings in the company from 24 per cent to 17 per cent.

Hibu, which changed its name from Yell earlier this year, has about £2.2bn of debt, dwarfing its current market capitalisation of just £28m.

Hibu PLC 1.25 p

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1.00 0.75 0.50 30 Aug 31 Aug 3 Sep 4 Sep

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CHINA’S Lenovo Group agreed yesterday to buy Brazilian consumer electronics maker CCE, as the world’s second-largest PC maker by sales looks toward Brazil’s promising consumer market to boost profit growth, which has been slowing. The deal, announced in a securities filing and valued at a base price of 300m reais (£93m), will help Lenovo nearly double its share of the PC market in the world’s sixth-largest economy. The acquisition came after shares in Lenovo dropped as much as 8.1 per cent after Japan’s cash-strapped NEC Corp sold its entire stake in

the company in a deal worth ¥18bn (£144.37m). The fall in the stock took Lenovo shares below HK$6.30, the lower end of the range at which the deal was priced, suggesting investors were expecting further weakness in the stock. A Lenovo executive said that the stake sale would not impact a PC and tablet business venture the two formed last January to focus on the Japanese market. “In reality, NEC could sell those shares after two years anyway as per contract. All we have done is to let them do it 10 months earlier. This has no bearing on our joint venture,” said Roderick Lappin, vice president of Lenovo Group.

cityam.com

THURSDAY 6 SEPTEMBER 2012

18

CITYDASHBOARD CITY MOVES WHO’S SWITCHING JOBS

HSBC

YOUR ONE-STOP SHOP FOR JOB MOVES, BROKER VIEWS AND MARKET REPORTS

Barnett Waddingham

Stanier specialises in advising UK and international issuers on independent price offerings.

James Emmett has been appointed the bank’s head of global trade and receivables finance. He began his career at HSBC 17 years ago, and has held a variety of roles in trade finance, commercial banking, retail banking and strategy. Most recently, Emmett was head of strategy and planning for commercial banking. He replaces Rakesh Bhatia, who is moving to another role at the bank.

Gavin Markham has been appointed as an associate in the actuarial and consultancy firm’s corporate consulting team. He joins from BAE Systems, where he was head of pensions actuarial for 5 years. Markham has also previously worked for Towers Perrin.

BlackRock The investment management firm has made two new appointments to its UK institutionals business. Arno Kitts joins as head of UK institutional from Henderson Global Investors, where he was most recently co-head of global distribution. Andy Tunningley joins as head of the UK strategic team from Aon Hewitt, where he was latterly global practice leader in its investment consulting division.

Ignis Asset Management Mark Julio has been appointed as portfolio manager for emerging market equities at the asset management firm. He joins from Baring Asset Management, where he was investment manager, global emerging market equities.

Cordea Savills

Berwin Leighton Paisner Julian Stanier has been appointed as a partner in the law firm’s London corporate finance team. He joins from Norton Rose, and has more than 18 years’ experience in equity capital markets, and mergers and acquisitions transactions.

NEW YORK

in association with

Edited by Tom Welsh

Aberdeen Asset Management

The property investment management firm has appointed Kiran Patel as its chief investment officer. He joins from Axa Real Estate, where he was most recently global head of business development, distribution, research and strategy. Patel has over 20 years’ experience in the industry, and has also held roles at Legal & General Investment Management.

Julie Pine has been appointed as client director in the asset management firm’s London office. She joins from Fidelity, where she held a similar role. Pine has worked in asset management since 1989 and will be responsible for building Aberdeen’s relationships with UK pension funds.

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LONDON REPORT

BESTof the BROKERS

FTSE underperforms as BP weighs on a market awaiting Europe news

B

RITAIN’S benchmark share index fell to its lowest level in more than a month yesterday, underperforming gains on rival European stock markets, as BP slumped after the 2010 Gulf of Mexico oil spill returned to haunt the energy company. Nerves ahead of a European Central Bank meeting today, with the ECB under increasing pressure to take new steps to fight the Eurozone’s sovereign debt crisis, also weighed on markets. The blue-chip FTSE 100 index ended down 0.3 per cent, or 14.15 points lower, at 5,657.86 points. It finished at its lowest closing level since ending at 5,635.28 points on 31 July, and underperformed gains on Germany’s DAX and France’s CAC-40 markets. BP took the most points off the index, falling 2.9 per cent to 423.85p and stripping 9.5 points off the stock market. The US Justice Department ramped up its rhetoric against BP over the massive 2010 oil spill, but Hartmann Capital trader Basil Petrides said he had used BP’s decline to buy the stock since he felt BP and the US would end up reaching a settlement over the affair. Petrides added that equity markets could fall today since he felt ECB head Mario Draghi might only offer up limited details on a new bond-buying plan, which might not fully dissipate investors’ worries over the European debt crisis. “I think the market will go down tomorrow and I will be looking to buy stock. There’s a lot of cheap stocks out there, but what’s cheap today may be cheaper tomorrow,” said Petrides, who bought BP shares at 419p and 423.50p yesterday. Insurer Resolution was the worst-performing FTSE 100 stock, falling 5.1 per cent. Traders cited the ongoing impact from a series of broker downgrades on the stock over the last month, after Resolution disappointed investors by cancelling plans to give cash back to its shareholders.

“Investors have lost a bit of confidence in that stock,” said JN Financial investment manager Edward Smyth. Technical trading patterns pointed to further negative pressure on the FTSE, which remains close to falling below its 200-day simple moving average level – an indicator often used by traders as a signal to sell. IFR Markets, a unit of Thomson Reuters, wrote in a research note that the FTSE 100 had managed to hold above a key technical level of 5,630 points but would need to break back above the 5,700 mark to get more buying momentum back for the index. “Technically, the picture is bearish. If it remains below the 200-day average, it could move down to 5,500 points or lower,” said EGR Broking managing director Steven Mayne. Mayne said he had been “short” on the FTSE, having taken out bets on further falls in the index, but was not taking any major positions ahead of the ECB meeting. “Sitting on the sidelines seems to be the sensible strategy,” he said. Meanwhile in the rest of Europe, Nokia slumped 13 perc ent after the company and Microsoft showcased the new Lumia smartphone in New York in hopes of competing with Apple and Samsung, but analysts were less impressed. The Eurozone’s blue chip Euro STOXX 50 index rose 0.2 per cent to 2,441.81 points.

660.00

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3 Sep

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5 Sep

JD SPORTS

Ahead of interim reports on 18 September, Singer Capital has moved JD Sports back onto its “buy” list from “fair value” with a target price of 790p. The broker expects a fall in profits before tax from £16m to £2.4m after the company absorbed Blacks at the start of the year, but has confidence in management to restore profitability. It also sees international expansion of the core business as a driver of the investment case.

320.30

Ashtead Group PLC p

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ASHTEAD

Numis has raised its target price on the equipment hire group from 293p to 380p and maintained its “buy” rating on the stock, saying the firm’s first quarter numbers reinforce the point of structural change in the industry. With rental trends growing in the US the firm is doing well despite weak economic and construction trends, says Numis. The broker has raised its full year outlook by 15 per cent.

97.25

Home Retail Group PLC p

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5,657.86

5,775

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5,750

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HOME RETAIL GROUP

5,700 5,675 5,650 30 Aug 31 Aug

JD Sports Fashion PLC p

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UBS has upgraded the Argos-owner from “neutral” to “buy” with a target price of 97p, saying that if Argos can produce broadly stable like-for-like sales in its second quarter, then its long term sales decline will start to look more like a cyclical trend than a structural problem. It also expects new managing director John Walden to address any remaining structural issues, but says the firm would benefit from further recovery in the UK consumer.

REPORT

FedEx outlook stokes bearish US sentiment

U

S stocks closed out a second straight session of thin trading yesterday, with investors reluctant to make big bets ahead of a crucial meeting of the European Central Bank, which could announce new policies to help contain the Eurozone’s debt crisis. Media reports that European policymakers would unveil a bond-buying plan to bring down crippling borrowing costs in Eurozone economies boosted sentiment, but it wasn’t enough to drive gains in stocks. Shares opened lower, hurt by FedEx, which late on Tuesday cut its quarterly profit outlook on weakness in the global economy. FedEx is considered an economic bellwether because of its role as the No2 world shipping company. The stock fell two per cent to $85.80, United Parcel Service fell 2.4 per cent to $71.94 and the Dow Jones Transportation index lost 1.1 per cent. “While FedEx is only one company, it’s one whose warning is indicative of the global economic slowdown we’re dealing with,” said Leo Grohowski, chief information officer at BNY Mellon Wealth Management in New York. Equities seesawed between positive and negative territory throughout the session. About 5.49bn shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, well below last year’s daily average of 7.84bn in a sign of investor caution. Central Bank sources told Reuters the ECB was ready to waive seniority status on government bonds it buys under a new program which it is set to agree on at today’s Governing Council meeting. Bloomberg earlier reported that the ECB would, with broad support from its council members, unveil an unlimited, sterilised programme of bond purchases. The ECB has been expected to be cautious about disclosing the size of its bond-buying, given opposition from Germany’s central bank. Further details of the plan will be revealed by ECB President Mario Draghi after today’s meeting, but some analysts cautioned the ECB may opt to wait until after the German constitutional court rules on the region's bailout funds on 12 September to announce any new steps. “While some of the rhetoric coming out of Europe has been positive, we'll need to see follow-through in actions now,” said Grohowski, who helps oversee $171bn in client assets. The Dow Jones industrial average was up 11.54 points, or 0.09 per cent, at 13,047.48. The Standard & Poor’s 500 Index was down 1.51 points, or 0.11 per cent, at 1,403.43. The Nasdaq Composite Index was down 5.79 points, or 0.19 per cent, at 3,069.27.

THURSDAY 6 SEPTEMBER 2012

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THEFORUM

In association with

cityam.com/forum

Self-control: The secret ingredient that guarantees a successful life W

HEN psychologists isolate the personal qualities that predict positive outcomes in life, they consistently find two traits: intelligence and self-control. So far researchers haven’t learned how to permanently increase intelligence. But they have discovered, or at least rediscovered, how to improve self-control. The first two steps are setting a goal, and then monitoring your behaviour. The latest laboratory work reveals that self-control has a physical basis and is dramatically affected by simple things like eating and sleeping. A life-changing business decision may go in different directions depending on whether it’s made before or after lunch. My co-author, professor Roy Baumeister, started out as something of a sceptic. But then he observed willpower in the laboratory: how it gives people the strength to persevere, how they lose self-control as their willpower is depleted, and how this mental energy is fuelled by glu-

Agree? Disagree? Got a sharp comment? The Forum wants you to join the debate.

JOHN TIERNEY cose in the body’s blood stream. He discovered that willpower, like a muscle, becomes fatigued from overuse but can also be strengthened through exercise. We often think of willpower as an extraordinary force that can be summoned to deal with emergencies. But that’s not what Baumeister has found. Most major problems centre on a failure of self-control: compulsive spending and borrowing; underachievement at school; or procrastination at work; alcohol and drug abuse; unhealthy diet; lack of exercise; chronic anxiety; explosive anger. But your supply of willpower is limited, and you use the same resource

Twitter: @cityamforum

for many different things. Each day may start off with your stock fresh and renewed. But then, all day, things chip and nibble away at it. The link between willpower and decision making works both ways: Decision making depletes your willpower and, once depleted, you’re less able to make decisions. If your work requires you to make hard decisions all day long, at some point you’re going to be depleted you will start looking for ways to conserve energy. And the most tiring decisions are the ones that seem tough to you, even if they seem obvious to others. This depletion isn’t intuitively obvious, especially when it comes to appreciating the impact of making decisions. Virtually no one has a gutlevel sense of just how tiring it is to decide. Even hypothetical decisions deplete energy. After making some tough decisions, remember that your self-control is going to be weakened. The problem of decision fatigue affects everything from the careers of chief executives to the prison sen-

on the web: cityam.com/forum

tences of criminals appearing before weary judges. It influences the behaviour of everyone, every day. Yet few people are even aware of it. When asked whether making decisions would deplete their willpower and make them vulnerable to temptation, most people say no. In one study, people were asked to

Willpower is like a ‘muscle that becomes

fatigued from over-use, but it can be exercised imagine that they had $10,000 (£6,286) that they did not need in a savings account. Then they were presented with an investment opportunity described as average risk and above-average rate of return. When people were not depleted of willpower, most of them said they would

make the investment. Depleted people, in contrast, decided to leave the money where it was. Their decision didn’t make any sense financially – but it was easier than making a decision. Forget the image of starving artists (or City workers) who do great things by working around the clock. Selfcontrol is most effective if you take good basic care of your body. The more that researchers study sleep deprivation, the more nasty effects they keep discovering. A big mug of coffee in the morning is not an adequate substitute for enough sleep. Beware of making binding decisions when your energy is down – you’ll tend to favour options with short-term gains and delayed costs. A rested will is a stronger will. John Tierney is a journalist at the New York Times. This is an exclusive extract from Willpower: Why Self-Control is the Secret to Success, which Tierney co-wrote with Roy F. Baumeister, professor of psychology at Florida State University. It is published in paperback today (Penguin, £9.99).

or by email: [email protected] Top responses will be reprinted in The Forum.

Obama isn’t working: He won’t win without a stronger message on jobs

A

S BARACK Obama pinned his electoral hopes on Bill Clinton’s rhetorical prowess at the Democratic convention last night, Mitt Romney is channelling Ronald Reagan by asking voters: “Are you better off now than you were four years ago?” It’s certainly throwback week on the campaign trail. But, with two landslide victories, Reagan may provide Romney with that elusive edge in the polls. At least at first sight, the Republican convention failed to garner much momentum for Romney. According to Gallup, the Republican nominee has joined the ill-fated George McGovern and John Kerry in becoming only the third

THE WHITE HOUSE RACE EWAN WATT presidential candidate – and the first Republican – to fail to receive a “bounce” in the polls after their convention speech. This can perhaps be attributed to the fact that, compared to John McCain and Sarah Palin’s speeches in 2008, television viewership plummeted 23 and 41 per cent for Romney and his vice presidential running mate Paul Ryan respectively. If the convention

in Tampa was about introducing voters to Romney’s private, more charitable side, some sections of the electorate clearly remain oblivious. And yet, as Obama heads down to Charlotte, North Carolina, he does so, according to an ABC News/Washington Post poll, as the first incumbent seeking re-election with a net unfavourable rating. Most importantly, his favourable ratings among women have fallen to their worst levels since he took office. This made it all the more important for first lady Michelle Obama to wow viewers with a moving speech about her husband’s values, his humble upbringing and the need for a second term to complete the “change” he initiated in 2009. Her

delivery was powerful – near perfect. Like Ann Romney last week, the first lady demonstrated her credentials as a major asset to the campaign. But asking voters for another term to achieve an abstract, four year old campaign slogan is not an easy sell. A full 54 per cent of Americans believe that Obama doesn’t deserve re-election. The President gave himself an “incomplete” when asked to grade his first term, drawing ridicule from Republicans. They noted that, when the clock runs out, you fail. However, it’s in posing the Reagan question – whether the country is “better off” under Obama – that Republicans have put Democrats on the defensive. A response in the

affirmative might appear insensitive; the negative a de facto endorsement to oust him. Republicans certainly know the answer. Gauging the mixed responses from Democrats, they have yet to make up their minds. As Obama takes the stage tonight, he’ll be well aware that new jobs numbers will be released hours later on Friday morning. If they are again disappointing, Romney will not just be channelling Reagan, but continuing to cite a 1979 campaign advertisement from Margaret Thatcher. One term is enough. Because “Obama isn’t working.” Ewan Watt is a Washington, D.C.based consultant. Follow him on Twitter @ewancwatt

THURSDAY 6 SEPTEMBER 2012

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The Forum is open for you to take part. Got a sharp comment on one of today’s columns? Do you have another subject you want to share your opinion on? We want to hear your views. Email [email protected] or comment at cityam.com/forum

RAPIDresponses

TOP TWEETS

Jolt the economy

Gas is no saviour

[Re: More public spending is unlikely to multiply into stronger economic growth, yesterday] Paul Ormerod is spot on. I had hoped that the world had evolved beyond the theories of John Maynard Keynes. It should be obvious now that an increase in public spending will not stimulate the economy. Rather, David Davis is right. The economy must be jolted into action, and that won’t happen if you increasingly saddle the country with debt. You do this by relaxing labour laws, removing red tape, and lowering taxes. This is why our politicians need to have practical experience in the business world. Common sense is something we seem to be lacking.

[Re: Britain can finally make the dash for gas with Paterson, yesterday] Benny Peiser’s suggestion that shale gas is a silver bullet for the economy misrepresents reality. A Deutsche Bank report on shale’s potential in Europe suggested that “those waiting for a shale gas ‘revolution’ outside the US will likely be disappointed”. In the UK, estimates by the British Geological Survey suggest that recoverable shale reserves are equivalent to around just one and a half years of UK consumption. And UK emissions will not be positively impacted. Any additional use of gas will be at the expense of genuinely lower carbon alternatives.

Ike Nwobodo

Jenny Banks, energy and policy officer at the World Wildlife Fund

I can’t believe the Tories have been so easily satisfied by this small reshuffle. It’s the economy they should worry about. @antonhowes

Reshuffle optimists aren’t predicting radical improvements, but there’s greater scope for lots of incremental improvements. @TimMontgomerie

Delaying the Heathrow decision until after the next election is unacceptable and should be taken as a green light. @ZacGoldsmith

Boris Island and regional expansion is the way forward to increase capacity. Do we need an expensive review to tell us this? @NadineDorriesMP

As the coalition debates whether to expand airport capacity, which is the best option?

HEATHROW

BORIS ISLAND

Tim Yeo

Huw Thomas

Britain needs the third Heathrow runway because Boris Island is too expensive, too late and in the wrong place. Building Boris Island requires billions of taxpayers’ money. Expanding Heathrow does not require a penny. No aircraft could take off from Boris Island before 2030. The third runway could be operating in 2020 if the go-ahead is given now. Waiting another decade to bring our transport infrastructure into the twenty-first century will weaken our economy, while our European competitors tie up the inward investment and export business that China and other Asian tigers have to offer. Anyone living west of Paddington would have to cross London to fly from Boris Island, another 100,000 more people fighting their way through the capital every day. So if you want a project that is on time, free and cuts congestion in London, Heathrow is the only choice. Tim Yeo is Conservative MP for South Suffolk.

Connectivity is the lifeblood of Britain’s economy. But to remain competitive, we must comprehensively tackle the issue of aviation capacity – not just in the short term, but for future generations. A third runway at Heathrow, which can only be a short one, is a temporary fix. It will reach full capacity within a decade, with no means to expand. A purpose-designed aviation hub in the Thames Estuary would satisfy capacity and connect Britain to the emerging economies that will drive growth. A world-class airport with four full-length runways in the Estuary would take 14 years to complete, only two years longer than expanding Heathrow because the planning process is the same. What’s more, the £20bn cost of the new airport can be met by private funding. But investment can only follow from confidence, which relies on political will to act. Huw Thomas is a partner at Foster + Partners, the architect firm founded by Lord Foster, which developed the Thames hub proposal.

The reshuffle is a fillip for Osborne and the economy

T

HE chancellor had a mixed reshuffle. First, the negatives. He wanted Iain Duncan Smith out of Work and Pensions, but the quiet man had his way. Osborne also winds up with Ken Clarke as a roving rival, licensed to speak about the economy; untameable and unabashed in voicing his views, whether or not they fit with the message of the day. Also, Clarke is able to boast a record as chancellor which compares favourably to that of the incumbent. It’s a perplexing outcome – one the leadership may not quite have thought through. However, the reshuffle offers some long-term prospects of success for the chancellor and the economy. The new line-up sees some of the more rigorously right-wing, low-tax, deregulation-minded MPs move up, while more centrist mid-tier players move out. The 2010 parliamentary Conservative intake has had to wait longer for perks than its predecessors, and the reshuffle brought fewer rewards than normal, as the Lib Dems took a disproportionate share of the spoils. Nevertheless, Matt Hancock, Sajid Javid and Liz Truss have finally seen substantive Parliamentary progression. Albeit necessarily more obedient than others, they are fairly representative of their intake as a whole: bright, pretty Eurosceptic, independently minded free marketeers. Osborne’s erstwhile parliamentary private secretary (PPS), Javid, was an investment banker who has called for tax cuts to encourage growth: he becomes economic secretary. I’ve seen him inspire free market audiences with his open calls for a much smaller state. The chancellor’s former chief of staff, Hancock, goes to Business Innovation and Skills as a PPS. A more disciplined supporter of

ALEX DEANE the government line is hard to find, but he’s also well qualified and a believer in liberating business and individuals from onerous regulation and tax. Truss was a campaigning thinktanker, who has an admirable commitment to individual choice over state control. Not everything went right. Mark Hoban’s replacement, former Social Democratic Party man Greg Clark, is wonkish and wise, but the extent to which he can enhance Hoban’s work as financial secretary is questionable. Similarly, Michael Fallon replaces the highly regarded Business Innovation and Skills minister Mark Prisk. Fallon has been a strong and reliable performer for ages, whose absence from higher office was frequently remarked upon. Whether Prisk had to make way is another question. But all in all, it was a good shuffle. The removal of the abysmally underperforming erstwhile Party co-chairman Sayeeda Warsi was a must. Likewise, the installation of a new face at the Department for Transport will permit the leadership to plough on with the symbolic and important expansion of Heathrow. And the rise of a more ideological, braver generation offers the prospect of reinforcements among the welterweights for actual, genuine cuts. It will put steel in the spine of those who believe we need to shrink the state to get Britain’s economy out of the mire. Alex Deane is the former aide to David Cameron.

4th Floor, 33 Queen Street, Distribution helpline Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor Marc Sidwell London, EC4R 1BR News Editor Elizabeth Fournier | Business Features Editor Philip Salter | Lifestyle Editor Steve Dinneen | Sports Editor Frank Dalleres If you have any comments about the Tel: 020 3201 8900 distribution of City A.M. Art Director Gavin Billenness Fax: 020 7248 2711 please ring 0203 201 8955, or email Commercial Sales Director Jeremy Slattery | Commercial Director Harry Owen | Head of Distribution Nick Owen [email protected] Email: [email protected]

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cityam.com

THURSDAY 6 SEPTEMBER 2012

22

LIFE&STYLE TECHNOLOGY

Tablet market hots up

NEED TO KNOW

THE NOKIA LUMIA 920

Nokia yesterday unveiled its latest handset, the first smartphone to run Windows Phone 8.

Samsung ATIV Smart PC

Sony Vaio Duo 11

This hybrid tablet comes with a keyboard docking station, aiming to combine the useability of a laptop with the, well, the coolness of a tablet. It looks a bit like a beefed up Galaxy Tab.

The Vaio Duo 11 is a flippy, foldy, deckchair-like device with a physical keyboard that falls somewhere between a tablet and an ultrabook. The extra hardware, though, makes it heavy.

A resurgent Microsoft hopes a new range of devices running Windows 8 will succeed where Google has failed and shake up a tablet industry dominated by Apple. Here are some of the players hoping to steal the iPad’s limelight.

WORDS BY STEVE DINNEEN

Lenovo ThinkPad 2

The basics

Positioned towards the business end of the market, the ThinkPad 2 is a 10.1 inch device that comes with a full USB slot, despite being just 9.8mm thick. It follows the trend of having a keyboard dock.

Nokia has, once again, produced what looks like a seriously good handset. It has a gigantic 4.5 inch HD display, which squeezes lots of the “Live Tiles” that Windows Phone 8 is based around onto the homescreen. It is also bright, with colours including banana yellow, electric blue and fire engine red.

The camera

One of its biggest selling points is the camera, which Nokia says is the best in class. It lets in five times more light than any of its rivals, meaning you can take pictures in low light without having to use a flash, which tends to make everything look awful. It also adds a new image stabiliser to the Carl Zeiss lens, making it easier to take pictures on the go.

Toshiba Satellite U920T

Dell XPS Duo 12

Well, would you Adam and Eve it? Another hybrid tablet, this time in the form of a fairly gigantic 12.5 inch, Gorilla Glass device with a fold out keyboard. Not the most practical solution on the market.

A slightly baffling device that will have you spinning it around in wonder the first time you get your hands on it. After the novelty wears off, though, you might wish it was a bit more straightforward.

Asus Vivo Tab

This purple contraption comes with... Yup, you guessed it... A keyboard dock. The keyboard is one of the better ones out there, although the tablet itself isn’t going to win many design awards.

HP Envy X2

The X2 is essentially a touchscreen version of HP’s Envy 4 ultrabook. It’s a slick piece of kit, working pretty well with and without the keyboard. This is one of the ones to watch.

Wireless charging

The days of the cable are numbered. The 920 comes with wireless charging, meaning you just need to lie it down next to a charge point and it will juice itself up. Options include the charging tablet (below), the “Fatboy” rechargeable pillow, which is essentially a softer version of the tablet, and various other docks. Nokia says Virgin Atlantic will be among the first brands to offer wireless charging facilities, which suggests we may be seeing more of the technology very soon. Perhaps even next week, when a certain other company has a little announcement for us.

SATELLITE & CABLE SATELLITE & CABLE

BBC1 6pm BBC News 6.30pm BBC London News 7pm The One Show 7.30pm EastEnders: BBC News 8pm CHOICE Waterloo Road 9pm Good Cop: 10pm BBC News 10.25pm Regional News 10.35pm Neighbourhood Watched: 11.20pm FILM Gone Baby Gone: 2007. 1.10am Holiday Weatherview 1.15am Sign Zone: Dial 999 – and Wait?: Panorama 1.45am Sign Zone: Countryfile 2.45am Sign Zone: Land of the Lost Wolves 3.45am Sign Zone: Doorstep Crime 999 4.15am-6am BBC News

SKY SPORTS 1

7pm Premier League World 7.30pm Live Under-21s International Football: Scotland v Luxembourg (Kick-off 7.45pm). 10pm The Footballers’ Football Show 11.30pm Premier League World 12am Ringside 1am Under21s International Football 2.30am The Footballers’ Football Show 4am Ringside 5am Premier League World 5.30am-6am IAAF Athletix

SKY SPORTS 2

4pm Live US Open Tennis 10pm Ringside 11pm IAAF Athletix 11.30pm ATP Tour Uncovered 12am-4am Live US Open Tennis

SKY SPORTS 3

7pm The Rugby Club 8pm Live PGA Tour Golf: The BMW Championship. 11pm European Tour Golf 1am The Rugby Club 2am PGA Tour Golf 5am-5.30am Thrillseekers

cityam.com

THURSDAY 6 SEPTEMBER 2012

TV LISTINGS

TERRESTRIA TERRESTRIAL

24

BBC2

ITV1

6pm Eggheads 6.30pm Celebrity MasterChef 7pm Celebrity Antiques Road Trip: Michael Aspel and Una Stubbs search for heirlooms in Norfolk. 8pm Wartime Farm 9pm Hilary Devey’s Women at the Top 10pm Mock the Week 10.30pm Newsnight: Weather 11.20pm The Rob Brydon Show 11.50pm James May’s Things You Need to Know 12.20am BBC News

6pm London Tonight 6.30pm ITV News 7pm Emmerdale 7.30pm Whatever Happened to Summer?: Tonight 8pm Emmerdale 8.30pm The Corrie Years 9pm CHOICE The Bletchley Circle 10pm ITV News at Ten 10.30pm London News

4am-6am BBC Learning Zone

10.35pm The Jonathan Ross Show: 11.35pm Poms in Paradise: 12.05am Jackpot247; ITV News Headlines 3am Whatever Happened to Summer?: Tonight 3.25am ITV Nightscreen 4.35am-5.30am The Jeremy Kyle Show

1.15am Dave Gorman’s Googlewhack Adventure 3.10am Stalked 3.35am This Is Me 3.40am Time Team 4.35am Deal or No Deal: Noel Edmonds hosts the game show 5.30am-5.40am Quick Bakes with Eric Lanlard

BRITISH EUROSPORT

Minds 5.10am-6am America’s Next Top Model

3.15am 90210 3.55am Smallville 4.40am-6am Switched

BBC THREE

HISTORY

7.30pm World Superbikes 8.30pm British Superbikes 10pm MotoGP 11.30pm-12.30am Cycling: Vuelta a Espana

ESPN

7pm ESPN Kicks: Brasileirao 7.15pm ESPN FC Press Pass: Football-related debate. 7.45pm Premier League World 8.15pm Major League Soccer 10pm Dream On – Wembley FC 11pm ESPN Kicks: MLS 11.30pm ESPN FC Press Pass 12am Live Major League Baseball 3am FIBA Basketball 3.30am Planet Speed 4am-6am World Series of Poker

SKY LIVING

7pm Criminal Minds 8pm Teen Wolf 9pm Cooks to Market 10pm Styled to Rock 11pm Grey’s Anatomy 12am Bones 1am Criminal Minds 1.50am Supernatural 2.40am Medium 3.30am Bones 4.20am Criminal

7pm The World’s Strictest Parents 8pm Don’t Tell the Bride 9pm Edinburgh Comedy Fest Live 2012 10pm Wilfred 10.20pm Pop’s Greatest Dance Crazes 10.30pm EastEnders 11pm Family Guy 11.45pm American Dad! 12.30am Edinburgh Comedy Fest Live 2012 1.30am Wilfred 1.50am Don’t Tell the Bride 2.50am-3.50am The Comedy Marathon Spectacular

E4

7.30pm How I Met Your Mother 8pm Big Bang Theory 8.30pm How I Met Your Mother 9pm 2 Broke Girls 9.30pm New Girl 10pm Franklin & Bash 11pm 8 Out of 10 Cats Uncut 11.50pm The Big Bang Theory 12.50am Scrubs 1.20am How I Met Your Mother 2.10am Rules of Engagement 2.35am Desperate Housewives

CHANNEL4 5.25pm Paralympic Games 2012 7pm Channel 4 News 7.30pm CHOICE Paralympic Games 2012 Tonight 10.30pm The Last Leg with Adam Hills 11.15pm Rude Tube: Ultimate Champions 12.20am David Blaine: Drowned Alive

7pm Storage Wars 7.30pm Pawn Stars 8pm Swamp People 9pm Ice Road Truckers 10pm Storage Wars 10.30pm Storage Wars: Texas 11pm Storage Wars 11.30pm Pawn Stars 12am American Pickers 1am Ice Road Truckers 2am Storage Wars 2.30am Storage Wars: Texas 3am Swamp People 4am The Last Days of World War Two 5am Pawn Stars 5.30am-6am American Restoration

DISCOVERY

7pm Bear Grylls 8pm Gold Rush Special 9pm How the Universe Works 10pm Curiosity 11pm Gold Divers 12am How the Universe Works 1am Alive! Sixty Days Under the Snow 2am Auction Kings 3am American Chopper: Senior Versus Junior 3.50am

CHANNEL5 TV PICK 6pm Home and Away 6.30pm 5 News at 6.30 7pm Frontline Police: Rav Wilding accompanies officers on a drugs raid; 5 News Update 8pm The King’s War on Witches: Revealed: 5 News at 9 9pm The Hotel Inspector 10pm Celebrity Big Brother 11pm Celebrity Big Brother’s Bit on the Side 12am SuperCasino

WATERLOO ROAD

BBC1, 8PM Gerard Findlay (Taggart’s Alex Norton) sets out to discredit Michael and it certainly does the trick with Lorraine (Daniela Denby-Ashe) and Sian.

3.55am HouseBusters 4.20am House Doctor 4.45am Michaela’s Wild Challenge 5.10am Nick’s Quest 5.35am-6am Nick’s Quest

Wheeler Dealers 4.40am Bear Grylls 5.30am-6am Destroyed in Seconds

DISCOVERY HOME & HEALTH

7pm Dr Oz 8pm I Didn’t Know I Was Pregnant 9pm Untold Stories of the ER 10pm Embarrassing Bodies 11pm Hoarding: Buried Alive 12am Untold Stories of the ER 1am Embarrassing Bodies 2am Hoarding: Buried Alive 3am I Didn’t Know I Was Pregnant 4am Deliver Me 5am-6am A Baby Story

THE BLETCHLEY CIRCLE

ITV1, 9PM New drama series about four fictional ex-Bletchley Park operatives who team up to solve murders. With Anna Maxwell Martin and Rachael Stirling.

SKY1

7pm The Simpsons 8pm Sinbad 9pm Trollied 10pm An Idiot Abroad 11pm Brit Cops: Frontline Crime UK 12am An Idiot Abroad 2 1am Road Wars 2am Brit Cops: Zero Tolerance 2.55am Road Wars 3.50am Brit Cops: Rapid Response 4.40am Road Wars 5.10am-6am Sell Me the Answer

PARALYMPIC GAMES 2012 TONIGHT CHANNEL4, 7.30PM

Continuing coverage of the 2012 Paralympics from London, featuring athletics, wheelchair basketball and wheelchair rugby.

cityam.com

THURSDAY 6 SEPTEMBER 2012

GAMES

COFFEE BREAK

QUICK CROSSWORD 

Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

SUDOKU

KAKURO

Place the numbers from 1 to 9 in each empty cell so that each row, each column and each 3x3 block contains all the numbers from 1 to 9 to solve this tricky Sudoku puzzle.



       



Fill the grid so that each block adds up to the total in the box above or to the left of it. You can only use the digits 1-9 and you must not use the same digit twice in a block. The same digit may occur more than once in a row or column, but it must be in a separate block.

  

 

45

24 28

17

14

9

6 12

3

7

39

15

12

35

6

21





34



14

17 16





33

4



30

16 4

7

45







LAST ISSUE’S SOLUTIONS QUICK CROSSWORD B L E E L A T E R M E H E M A N R R R S P A I N O G U L D Y E

P B B A C U N A D L S T G R A C A T E U L U N A W A L V N F T R A I N E A T R Y D

A R A G C E C R E N Y S E E R

KAKURO 1 5 9 3 7 8 2 4 1 4 2 1 3 4 3 7 6 5 7 9 3 9 8 1 4 2 8

3 6 5 5 1 1 2 6 9 1 2 8 4 6 6 1 9 3

7 9

8 7 8 9 4 6 5 8 9 2 4 1 7 6 2 6 9 8 7 3 2 4 1 3

A

Using only the letters in the Wordwheel, you have ten minutes to find as many words as possible, none of which may be plurals, foreign words or proper nouns. Each word must be of three letters or more, all must contain the central letter and letters can only be used once in every word. There is at least one nine-letter word in the wheel. 2 1 7 3 3 9 1 9 4

SUDOKU WORDWHEEL The nine-letter word was OBSERVANT

        

        

        

        

        

L I         

        

Q U B

E E         

        

 



7

WORDWHEEL







17

ACROSS

  



16

  





6







8 9



 

23

22 14

20

15 17

5

16

23 11

20



25

T

1 4 6 8 9 12 13 15 17 19 21 22 23 24

Close-fitting (5) Stepped (4) High male voice (4) Battleground (5) Showing reason or sound judgment (8) Item of footwear (4) Castrated male chicken (5) Leg joints (5) Inlet (4) American state in the Rocky Mountains (8) Paved area which adjoins a house (5) Card game (4) Group of people working together (4) Item of bed linen (5)



DOWN 1 Digits of the foot (4) 2 Product of seabirds, used as a fertiliser (5) 3 Implied (5) 4 Bullfighter (8) 5 Waste pipe (5) 7 Bath powder (4) 10 Very dark black (4) 11 Socially awkward or tactless act (8) 14 Was in debt to (4) 15 Destroyed or killed (5) 16 Before long (4) 17 Army unit of two or more divisions (5) 18 Indistinct (5) 20 Drum out (4)

THURSDAY 6 SEPTEMBER 2012

26

SPORT Cahill: Earning England recall will be tough BY JEORGE BIRD CHELSEA centre-back Gary Cahill admits he faces a fight to reestablish himself in the England starting line-up having missed Euro 2012 through injury. Cahill featured regularly under Fabio Capello for England, who play in Moldova tomorrow and host Ukraine on Tuesday, but now faces competition for his place from John Terry, Joleon Lescott and Phil Jagielka. “I think me not making the Euros has made this harder in one way,” he said. “I thought the lads did really well at the Euros so for me not being able to stamp my authority in that tournament has come back and made it another fight for me to try to get back involved and get the starting place. There’s great competition and Jags [Jagielka] scored against Italy, Joleon had a great Euros and JT

Gary Cahill was injured for Euro 2012 [Terry] is obviously well known and proven for many years.” Cahill also backed his Chelsea team-mate Daniel Sturridge, who is currently out of favour at Stamford Bridge but in the England squad, to shine on the international stage. “Everyone knows about the talent that Daniel has and how sharp and dangerous he can be,” he added. “It’s great to see him here after missing the [Italy game] through injury and he’s been lively in training over the last few days.” Left-back Leighton Baines, meanwhile, believes that there is less tension among the England squad under Hodgson than during the Capello reign. “He’s definitely relaxed us all and there’s been a shift in people’s mentality,” he said.

HODGSON’S CHOICE

England centre-back options n John Terry (Age: 31; Caps: 77)

Stalwart but increasingly injury prone

n Joleon Lescott (Age: 30; Caps: 21)

Good foil for stoppers like Terry/Cahill

n Phil Jagielka (Age: 30; Caps: 13)

Very reliable but age not on his side

n Gary Cahill (Age: 26; Caps: 10)

Has shone but missed Euros with injury

n Phil Jones (Age: 20; Caps: 5)

Versatile youngster currently injured

n Chris Smalling (Age: 22; Caps: 3)

Future prospect and can play full-back

n Rio Ferdinand (Age: 33; Caps: 81)

Stint appears over after Euros snub

cityam.com/sport

@cityam_sport

Sarah writes latest golden chapter of a stirring Storey

Paralympic cyclist claims her third gold of the Games

TODAY AT THE GAMES Athletics

n Oscar Pistorius is in action in the

T44 100m, dubbed the standout race of the games, where he will take on Jerome Singleton and Britain’s Jonnie Peacock (9.58pm). n In the T54 800m, reigning champion David Weir seeks another medal, but he will face competition from Kurt Fearnley and worldrecord holder Marcel Hug. n British world champion Dan Greaves aims for a medal in the F44 discus at the Olympic Stadium. n Great Britain’s Libby Clegg and Hannah Cockroft take part in the T12 200m (semi-finals 12.41pm, finals 7.42pm)

BY DECLAN WARRINGTON GREAT Britain’s Sarah Storey yesterday won her third gold medal of the Paralympic Games in the C5 women’s road cycling time trial and further success could yet follow today. In finishing one minute and 34 seconds ahead of her challengers, Storey defended the title won four years ago in Beijing to add to the golds of her C5 pursuit and 500m time trial toils and near to within one win of Baroness Tanni GreyThompson’s and Dave Roberts’ record of 11 gold medals. “I’ve spent so much time on the road this year and only went on to the track three weeks ago,” said Storey, who today competes for road race gold. “Having watched the success of the Olympic team on the road, Bradley [Wiggins] winning the time trial and Chris Froome getting the bronze medal, I just wanted to make sure I added my name to that list of success. “With the track I’ve done so much [but] I love riding on the road and when the time trial’s done, well there’s no greater feeling.” Furthering Storey’s success, Oliver Hynd won Britain’s sixth swimming gold in the SM8 200m individual medley to supplement the silver and bronze he had already won, Charlotte Henshaw and Liz Johnson respectively took sil-

Swimming

n Jonathan Fox goes for gold in

swimming in the 400m freestyle (5.47pm).

The cyclist Sarah Storey has won 10 golds and could equal Great Britain’s medal record ver and bronze with second and third in the SB6 100m breaststroke final, and Louise Watkin took S9 50m freestyle silver. In athletics, Bethany Woodward took silver in the T37 200m, David Devine won bronze in the 800m for his second bronze of the Games and in wheelchair tennis, Peter Norfolk and Andy Lapthorne took silver after losing 6-2, 5-7, 6-2 to Americans David Wagner and Nick Taylor in the quad doubles final.

Oliver Hynd has won three medals

PARALYMPICS chiefs have challenged South Africa to provide evidence that rival athletes illegally adjusted the height of their prosthetic legs in between races. Officials from the country have reignited the row sparked by Oscar Pistorius’s shock T44 200m final defeat to Brazil’s Alan Oliveira by writing to the International Paralympic Committee. An IPC spokesman said it had not measured blade length before each race but had canvassed coaches, who denied the practice, adding: “There is no evidence they were competing on different sized running blades.” Pistorius last night helped South Africa break the 4x100m relay T42/46 record, in 41.78 seconds.

Road cycling

n Sarah Storey seeks further

success in the women’s road race (2.32pm).

Sailing

n Britain hope for their first ever

medal in the SKUD 18 (1pm) and the Sonar (11am).

TOP 3 MEDAL TABLE China

60

50

49

Russia

28

25

20

GREAT BRITAIN

25

36

31

No1 one-day status a timely lift Cook content with summer’s for England and the new captain work after South Africa draw

C

ONFIDENCE in the England camp took a knock when they lost the Test series to South Africa last month followed by the first one-day international, so their recovery in the ODI series will have given morale a vital lift before a really tough winter tour to India, even despite losing again yesterday. The No1 status, in this form at least, remains theirs and they deserve great credit for what has been a team effort, rather than inspired by any individual’s sustained brilliance. Having said that, James Tredwell, now settled as England’s second spinner after Graeme Swann, has acquitted himself consistently well in various conditions – that’s a big bonus. It should be noted that South

CRICKET COMMENT ANDY LLOYD Africa have missed Jacques Kallis, but they are still very competitive. Having just assumed the Test captaincy, it’s also a fillip for Alastair Cook. All teams have sticky spells, when decisive leadership is very important. Coach Andy Flower has been exemplary, and Cook also did very well. Andy Lloyd is a former England Test cricketer. He has also been captain and chairman of Warwickshire.

BY DECLAN WARRINGTON ENGLAND captain Alastair Cook believes his side can be proud of their progress despite last night losing to end their one-day international series with South Africa in a 2-2 draw. England remain the world’s No1 ranked one-day side despite the South Africans yesterday securing a convincing seven-wicket victory and Cook, even with the loss of their status as the world’s top Test team and accepting that yesterday’s result was a disappointment, is regardless adamant that England are moving in the right direction. “It has been a good year,” said Cook, who last week replaced Andrew Strauss as Test captain.

“We’re building a squad, and we’ve competed in sub-continental conditions as well [in Pakistan]. “[But] it was a disappointing day – 180 on that wicket was nowhere near enough. “We pretty much all gave our wickets away. It’s frustrating, we came into the game trying to wrap up the series, and you’re not going to do that when you bat like that.” After James Anderson had inspired initial home hope when taking two wickets to reduce the Proteas to 14-3, South Africa’s Hashim Amla – alongside AB de Villiers – secured 97 not out in dominating England’s bowlers and increase his summer’s total to an impressive 817.

THURSDAY 6 SEPTEMBER 2012

cityam.com 27

Sunderland winger Adam Johnson has withdrawn from the England squad for the World Cup qualifiers against Moldova and Ukraine after suffering a thigh injury

Hamilton may leave McLaren for Mercedes BY JEORGE BIRD Andy Roddick won the US Open in 2003

Roddick retires on Del Potro defeat as Sharapova soars into US Open semi finals BY DECLAN WARRINGTON ARGENTINA’S Juan Martin del Potro last night ended the career of Andy Roddick with a hard-fought four set victory in the quarterfinals of the US Open. That Roddick retired at the scene of his finest hour – Arthur Ashe Stadium where he won the 2003 grand slam title – was perhaps rather fitting but despite him threatening Del Potro when winning the opening set, Roddick’s resilience was gradually broken

over the course of a high quality 6-7 (1-7), 7-6 (7-4), 6-2, 6-4 win for the big-serving seventh seed. In the women’s tournament, the third seed Maria Sharapova made the final four after defeating France’s Marion Bartoli 3-6, 6-3, 6-4 and admitted that she had benefitted from the substantial break in play brought by Tuesday’s rain. “The rain break gave me a few hours to think about things,” said Sharapova, who faces Belarusian top seed Victoria Azarenka next.

“I came out so flat [before]. She’s so tough and she was on fire. It’s not a good feeling to come into a match knowing that you’re down 0-4. It was a tough position to be in. But I’m so thrilled to get back to the semi-finals.” Sharapova won the first two games upon the resumption of play but despite Bartoli regardless securing the opening set, the Russian nervelessly completed her comeback to reach the semi-finals of the tournament for the first time since her 2006 slam victory.

BRITAIN’S Lewis Hamilton is close to swapping McLaren for Mercedes next season, according to former Jordan GP owner Eddie Jordan. Jordan believes that Hamilton will replace Michael Schumacher at Mercedes with the German expected to retire at the end of the year. Hamilton signed a lucrative fiveyear contract with McLaren in 2008 and is yet to agree new terms with the manufacturer. Jordan said: “I can now confirm his people have had meetings with Mercedes. Bernie Ecclestone made it clear to me live on television on Sunday that Schumacher was leaving, although Schumacher later played it down. “So it would appear Michael is leaving and Lewis is arriving at Mercedes. In fact the team have made it clear they cannot offer him as big a salary as his current $15m (£9.42m) deal, which was negotiated before the global financial crisis.” A McLaren spokesman said: “We have been told by Lewis Hamilton’s management team that the story is untrue.”

This is the one that matters QIPCO BRITISH CHAMPIONS DAY Be part of history at the explosive finale to our summer of sport Saturday 20 October 2012 at Ascot Racecourse Your tickets are waiting

0844 346 3000 britishchampionsseries.com

IN BRIEF

Hamstring injury sidelines Carroll

n FOOTBALL: West Ham’s Andy Carroll has been ruled out for around six weeks after suffering a hamstring injury against Fulham last weekend.

Bertrand extends Chelsea stay n FOOTBALL: Ryan Bertrand has signed a new five-year contract to stay at Chelsea.

Lord Oaksey dies aged 83 n RACING: Former jockey and founder of the Injured Jockeys Fund, Lord Oaksey, yesterday died aged 83.

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