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CITYVIEWS
I cant see the benefit in cutting them
more as they are next to nothing any-
way. I think people are cautious at the moment
theyve got their money stashed under their beds
and that is where they are going to keep it.
TIM MILLS
FIDELITY
Manufacturers
report gloomy
EU conditions
IN BRIEF
House prices soar in London
nHouse prices in London rocketed by
7.7 per cent in the year to May, the
Land Registry said yesterday far
outperforming the 0.4 per cent rise
seen across the UK. The most
expensive property sold in May went
for 18.5m in central London; the
cheapest recent property was sold in
Oldham for just 10,000, in April 2012.
London remains the powerhouse of
the UKs housing market, said Peter
Rollings of Marsh & Parsons.
Euro woes prompt asset juggling
nBNP Paribas is considering
relocating some international
activities to deposit-rich markets like
Belgium, according to a spokeswoman
for the bank, as BNP and other French
banks scramble to fill funding gaps on
their balance sheet. By moving assets
around its international chessboard,
BNP would likely be able to reduce its
own intra-group lending lines to euro
area troublespots like Italy and Spain.
World Bank could aid euro area
nThe new head of the World Bank
said yesterday that he was open to the
possibility of the development lender
advising troubled developed nations
like Greece, a major shift for an
institution that has focused on the
worlds poor. As American Jim Yong
Kim took the reins of the World Bank,
he said his priority was to protect
developing countries at a pivotal
moment for a world economy that
appears to be losing steam rapidly.
A EUROZONE rescue plan devised
at last weeks crunch summit has
been thrown into doubt, after the
Finnish government said it would
block the move along with the
Dutch authorities.
Leaders from the single currency
area had announced that rescue
funds could be used in a flexible
and efficient manner to mitigate
pressure on troubled states
believed to be a reference to pur-
chasing of bonds on the secondary
market.
But yesterday in Helsinki the
Finnish government told its parlia-
ment that it would seek to prevent
the European Stability Mechanism
(ESM) the planned new bailout
fund from being used to hoover
up debt.
Meanwhile a spokesman from the
Dutch finance ministry reiterated
that his government also did not
like the bond purchasing plan.
The Prime Minister said last
Finns and Dutch
cast doubts on
Eurozone deal
BY JULIAN HARRIS
Friday he is not in favour of buying
up bonds it will be expensive and
can only be done if there is unanim-
ity [among member states], the
spokesman, Niels Redeker, warned.
That means the Netherlands
would need to vote in favour.
However, a get-out clause in the
ESMs rules could allow the meas-
ure to be waved through, even if
Finnish and Dutch opposition per-
sists. If the European Central Bank
and European Commission feel the
Eurozone is under threat, they can
action the rescue fund on the basis
of an 85 per cent majority vote.
Finland, which enjoys stronger
public finances than most other
Eurozone states, has proved a lead-
ing cynic against a range of short-
term measures to bail out indebted
member states.
Meanwhile, Germanys constitu-
tional court yesterday announced
that it would begin a hearing on 10
July to determine whether the
countrys involvement in the ESM is
permitted by its constitution.
THE GREEK government should stop
wasting time and money trying to
renegotiate its bailout deal, and
focus on implementing reforms to
get its economy back on a path to
growth, a top European Central
Bank (ECB) official said yesterday.
Prime Minister Antonis Samaras
wants to ease some of the tough
austerity conditions attached to the
130bn (104.3bn) bailout, due to
the weak state of the economy.
But ECB executive board member
BY TIM WALLACE
Jrg Asmussen rejected the idea that
a slower readjustment would help,
arguing the deal is good for Greece.
The fiscal measures under the
programme have been designed to
gradually restore the sustainability
of public finances, he claimed.
If Greece were on its own, the
adjustment would have to be much
faster and more drastic, given that
the sovereign has lost access to
financial markets. So the
programme is actually helping
support the Greek peoples standard
of living.
JOBLESSNESS in the Eurozone rose
to a new record high in May,
pushed up by lay-offs in France,
Spain and even stable Austria, as
the two-and-a-half year debt crisis
continued to eat away at the
currency blocs fragile economy.
Around 17.56m people were out
of work in the 17-nation euro area
in May, or 11.1 per cent of the
working population, a new high
since Eurozone records began in
1995, the EUs statistics office
Unemployment edges higher
across single currency area
BY CITY A.M. REPORTER Eurostat said yesterday.
Unemployment will continue to
rise until we see an improvement in
the economy, and that may not be
until next year, said Steen
Jakobsen of Saxobank. The next
few months are likely to constitute
a low in the growth cycle, he said,
predicting a contraction in output
in the next quarter.
Economists at ING see
unemployment reaching as high as
12 per cent if European
manufacturing does not stage a
recovery, they said yesterday.
TUESDAY 3 JULY 2012
9
ECONOMIC CRISIS
cityam.com
The Eurozone is experiencing a record level of joblessness
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ADVERTISING giant WPP yesterday
snapped up South Korean media
planning agency Alchemedia for
an undisclosed sum.
Alchemedia has been valued at
around 10bn won (5.6m) and will
be absorbed into WPPs Korean
arm GroupM.
The purchase is the latest
purchase in Sir Martin Sorrells
shopping spree, following the
takeover of French consultancy
I&E and the 343m investment in
digital marketing agency AKQA
last month.
WPP expands
in South Korea
BY JAMES TITCOMB
COMMUNICATIONS firm Arqiva has
made an agreed 23.4m bid for Wi-Fi
operator Spectrum Interactive,
which would create one of the UKs
largest internet hotspot providers.
The deal is set to put Arqiva in
control of hotspots in over 2,100
locations. It will compete with the
likes of BT and Virgin Media,
although unlike its rivals it will
only sell its services to businesses.
Arqiva, which already owns 1,000
transmitter sites, said the deal
would allow it to bolster its fast-
growing mobile data business.
Arqiva set for
hotspot deal
BY JAMES TITCOMB
TUESDAY 3 JULY 2012
10
NEWS
cityam.com
brainchild of Steve Perlman, whose
accomplishments include Apples
QuickTime multimedia player, the
motion capture technology used in
Brad Pitts Benjamin Button movie
and an innovation incubator named
after an Ayn Rand hero: Rearden.
Perlman unveiled OnLive in 2009 to
a chorus of disbelief. An industry
built around rolling out ever-more-
powerful consoles to run the latest
games simply did not believe that
these graphic marvels could be
delivered over the internet onto any
device. But as yesterdays deal
demonstrates, that disruptive future
is rapidly arriving.
When you can stream games to
any device, it is more important than
ever to make a customers devices
talk to one another. Sonys previous
chief executive Howard Stringer
understood this when he proposed a
four screen strategy for the
technology giant: interaction across
computers, tablets, phones and
smart TVs. His successor Kazuo Hirai
has laid out his own path, but this
acquisition shows their common
ground. Streaming technology like
Gaikais brings games into the mix
with streaming music and films.
However, it also suggests that
anyone building plans around
dedicated games consoles, handheld
or otherwise, is standing on a
burning platform while a chainsaw
hurtles towards them.
Marc Sidwell is City A.M.s managing
editor.
CREDIT Suisse sold its seven per
cent stake in fund manager
Aberdeen Asset Management
yesterday as part of its efforts to
substantially increase its capital.
The Swiss bank planned to sell
80.4m shares for 245p to 255p
each, raising as much as 205m.
A source close to the deal
confirmed the shares were snapped
up in around 15 minutes during
late afternoon, mostly selling at the
top end of the price range a two
per cent discount on Aberdeens
260p closing price on Friday.
Its shares rose 1.9 per cent to
265p yesterday.
Credit Suisse
sells Aberdeen
BY LAUREN DAVIDSON
POUNDLAND has continued to
prosper in the economic downturn
as shoppers flock to the retailer in
search of bargains.
Europes biggest single price
discount retailer reported record
sales of 780m in the 53 weeks to
April a 21.6 per cent jump and a
22.2 per cent leap in earnings before
interest, tax, depreciation and
amortisation to 287.7m.
More than 4m bargain hunters a
week shopped at Poundland over the
period, pushing like-for-like sales 2.3
per cent higher. A third of shoppers
now visit budget retailers of some
kind, according to IGD.
Poundlands
in the money
BY JAMES TITCOMB
GLOBAL private equity firm
HarbourVest Partners said funds
under its management will buy
Conversus Capitals investment
portfolio for $1.4bn (900m).
Guernsey-based Conversus, a
publicly traded portfolio of third-
party private equity funds, said it
will appoint a liquidator to wind
up its operations after the closing
of the deal.
HarbourVest said the funds,
along with HarbourVest Global
Private Equity Limited, will buy
the entities that hold Conversus
private equity fund interests and
direct co-investments.
HarbourVest
buys portfolio
BY CITY A.M. REPORTER
TUESDAY 3 JULY 2012
11
NEWS
cityam.com
With growth at Serco largely emanating from emerging markets such as
Africa and Asia, a retreat from more pedestrian regions is understandable.
Despite the recent half year trading update, which placed greater
investor faith on the second half, consensus opinion remains favourable.
ANALYST VIEWS
16
TUESDAY 3 JULY 2012
DETLEV SCHLICHTER
Germanys economy is only king
in the blind valley of the Eurozone
those 13 years did Germanys deficit
stay within the Maastricht Treatys rec-
ommended limit of 1 per cent, and on
seven occasions it exceeded the maxi-
mum of 3 per cent.
True, last years deficit of 1 per cent
looks respectable when compared to
most of the Eurozone, or Britain (8.4
per cent) or the US (8.7 per cent). But
this was achieved after two years of
three per cent growth, record-low bor-
rowing costs and the lowest unemploy-
ment rate in 20 years. Even then, the
German state could not balance its
books. And these rosy conditions will
certainly not last. As elsewhere, artifi-
cially low interest rates are, for the
time being, sustaining a mirage of
profitability and prosperity in large
parts of the German economy, in par-
ticular the financial sector.
More important is the fact that
Germany sits on a ticking fiscal time
bomb and nothing has been done in
years to diffuse it. Over the past four
decades, Germany extended consider-
able, unfunded promises to the popu-
lace, mainly in the areas of public
health insurance, state pensions and
the public care insurance. An expen-
sive inheritance of the last conserva-
tive government under Helmut Kohl,
Chancellor Angela Merkels mentor.
These commitments constitute, at
minimum, implicit government debt
in excess of 200 per cent of present
GDP.
The Germans like their welfare state
and their appetite for reform is strictly
limited. The modest, but not unimpor-
tant, measures to liberalise the labour
market that Germany now feels give
her the right to lecture others on the
topic of structural reform, all date back
to the second Gerhard Schroeder gov-
ernment ten years ago. Nothing has
happened under Merkel. No wonder,
these reforms cost Schroeder the chan-
cellorship.
Germany is not an exception. Like
most other mature social democracies,
it is slowly but surely going broke.
Differences with Greece and Spain are
of speed and degree only, not of direc-
tion. It is utter recklessness that the
country has now taken it upon itself to
be the backstop for the entire conti-
nent. Once Spain has officially joined
the casualty list, 80 per cent of
European Financial Stability Facility
(EFSF) funds will have to come from
just 3 countries: Germany, France and
Italy. That would mean a bill in excess
of 200bn for Germany right away,
more than 8 per cent GDP. But as
Italy or various national banking sec-
tors could be next in line, demands
on German funds are practically limit-
less.
Banks in the periphery are haemor-
rhaging deposits, which are flowing to
a considerable degree to Germany. At
the level of the national central banks,
these transfers are not being settled.
This allows banking sectors in the
periphery to replace vanishing client
deposits with ECB funds, and thus
limit asset sales and balance sheet con-
traction at local banks in Spain and
Greece. This puts the Bundesbank in
the uncomfortable position of being a
de-facto creditor to other central
banks. At the end of May, Target2 bal-
ances at the Bundesbank stood at
700bn, about 27 per cent of German
GDP.
Germany may well be last man stand-
ing in the Euro drama but that only
means that there will be no one left to
bail her out. Bunds as safe-haven invest-
ments are another bubble ready to
burst.
Detlev Schlichter is the author of Paper
Money Collapse The Folly of Elastic Money
and the Coming Monetary Breakdown (Wiley,
2011). He blogs at papermoneycollapse.com
tions.
When the Bank of England makes
decisions about the necessity and
efficacy of quantitative easing, they
chiefly look at M4, the broad money
supply. However, in May 2009 they
decided that deposits of other
financial corporations were under-
mining M4 and released a new ver-
sion, M4ex, which stripped them
out. This was all in good timing,
because while M4 was suggesting
that the money supply was expand-
ing by 12-18 per cent throughout
2008/2009, M4ex showed that it fell
from over 10 per cent growth to
about 4 per cent. This is far more
consistent with common sense, but
with two conflicting measures there
is scope for economists to trust
whichever fits their prior beliefs.
Indeed, the recent debate over QE3
rests on an estimate of what would
happen to broad money growth
with and without further monetary
stimulus. As the chart shows, those
advocating more money pumping
are wont to focus on the traditional
measure of M4, which is suffering
from an ongoing monetary contrac-
tion. However, M4ex is growing at a
positive, moderate rate.
There is also scope for other meas-
ures, and a richer conversation
about how to measure the money
supply. In the US, money of zero
maturity (MZM) has emerged as a
complement, occupying a middle-
ground between narrow and broad
money. Kaleidic Economics the
London-based business roundtable
that I direct currently publishes a
similar measure called the Austrian
money supply (MA).
MA has revealed strong monetary
growth throughout 2011. In the first
few months of 2012 it has been
growing at above 5 per cent per
annum. This suggests that the mon-
etary authorities might be reinflat-
ing the bubble that caused the 2008
recession.
Anthony J. Evans is associate professor
of economics at ESCP Europe Business
School.
www.anthonyjevans.com
Twitter: @anthonyjevans
FRONTLINE
ECONOMICS
ANTHONY J. EVANS
The science of measuring the money supply can be artfully constructed
Measures of the money supply
Apr2011 Jul 2011 Oct 2011 Jan2012
9%
6%
3%
0%
-3%
M4ex
MA
M4
MN QUICK
cityjet.com
It takes no time to
y from City Airport.
From 70
*
one way.
17
Winners and losers
[Barclays chair was right to resign over
scandal, yesterday] Bob Diamond should
be applauded for having led and very
successfully grown Barclays' investment
banking operations into a global titan.
But an operation or organisation typically
reflects the standards and behaviours of
its leaders, especially if the leader has a
strong personality.
Philip Morrish
Changing the metric of Libor appears to be
fraught with legal difficulties, due to the
sheer number of contracts currently tied to
it. Would the International Swaps and
Derivatives Association have the authority
to change the contracts, and would their
reach extend to all such contracts?
Martin Madden
I dont understand who lost out from the
manipulation. I see mention of mortgage
holders and pension funds who were
counterparties, but how did they lose?
Kate McFarlane
Libor manipulation isnt a victimless
crime. Chief among the victims are the
vast majority of Barclays employees for
whom the scandal will be an
embarrassment. Money comes and goes
a damaged reputation is tougher to fix.
And the reputation of the City as an
employer to many of Britains best and
brightest also suffers. Defences salaries
and bonuses often cite talent and
expertise. What evidence of talent is
there in trading a rigged market?
Kevin Wales
W
E SHOULD be under no
illusion about how
catastrophic the failure
of the Libor rate setting
mechanisms has been.
There has been widespread
manipulation of the most
important price of risk. And we
dont need reminding how
important the price mechanism is
for the allocation of everything
from goods to services, and of
course capital. Any manipulation
of prices naturally leads to a
misallocation of capital,
redistribution of wealth, and
arbitrage opportunities. With
Libor forming the base for over
500 trillion in securities and
loans, Barclays is lucky to get away
with a fine of 290m.
However, just beating up Barclays
as a proxy for our frustration will
do nobody any good. We must
identify the source of failure and
take the right steps so it doesnt
happen again. The main culprit for
this misery is the British Bankers
Association, which has allowed a
price setting mechanism to persist
that was wholly inadequate for the
task. It was designed in a period
when trading was done over the
telephone, and prices communicat-
ed via newspapers. It was never
updated, despite enormous techno-
logical change in the trading
room, and no safeguards devel-
oped, despite its tremendous suc-
cess as a reference value.
The process invited manipula-
tion, and some traders responded
to the economic incentives manip-
ulation offered. This is obviously a
failure of the traders, but also of
the institution that designed the
process.
To regain trust in the system, the
public debate needs to focus on
how to restructure Libor. It must be
TOP TWEETS
Drought news just in: April to June this year
has been the wettest second quarter in the UK
since records began in 1910.
@cjsnowdon
The public is asking for head of top bankers.
How many politicians, regulators and central
bankers have resigned for the mess we are in?
@TheBigFish_UK
Barclays one of biggest FTSE risers but for
perspective, still 14 per cent lower than last
Monday, 3bn off value due to Libor scandal
@DavidJones_IG
Spain is now paying more to borrow for 3
months than Germany is doing for 30 years.
@plegrain
Would a vote for Scottish independence in
its referendum be boon for its businesses?
YES
Scotland is a country rich in opportunity and bursting with
innovation, but sadly this does not translate often enough into
greater commercial opportunities. Independence will provide us
with new tools tax credits for example to deliver a step-change
in Scotlands research and devlopment. Independence provides
greater scope to shape the regulatory environment to promote
competition, while encouraging consumer choice and technical
innovation. Scotlands international links are key to building success,
however, we are often one step removed from that international
market and business is frustrated at being directed through London
to connect with Europe and beyond. Control of air passenger duty
would enable us to grow the number of direct international air links.
With independence, we can utilise all the economic levers to provide
the stable and supportive environment Scottish businesses demand.
Stewart Hosie MP is the SNPs Treasury spokesperson.
Stewart Hosie
NO
Alistair Darling
Scotland is better off as part of the United Kingdom because of
the huge benefits of a single market for business. We have the
pound and share a financial services regulatory regime with our
neighbour. Its important given the size of the sector in Scotland.
On top of that, there are many other rules and regulations that
apply across the border. And Scotland as part of the UK has far
greater influence in the European Union than it would ever have
alone. The nationalists ill-thought-out plan for a currency union,
sharing the pound with the rest of the UK, would create the same
problems we see in the Eurozone today. A common currency
eventually takes you back to political union, exactly where you
started from. The nationalists have yet to explain to business the
uncertainty, risks and costs of separation.
Alistair Darling is the former chancellor of the exchequer and
leader of the Better Together cross-party campaign group.
RAPIDresponses
robust to manipulation, using
technology in a clever way to min-
imise the ability of ex-post manipu-
lation by delivering prices in real
time. While internal and external
oversight is desirable, we have to be
realistic about how much can be
achieved with it. Unfortunately, if a
process that offers enormous
rewards can be manipulated, even-
tually somebody will try to do it.
There are obvious things that
need fixing. Libor needs to be
based on real trades, and not
assumed trades. It will need to be
volume-weighted, and not treat
every trade equally. The informa-
tion needs to be sourced directly
and automatically from in-house
trading systems, and this interface
has to be secure against human
interference.
The delivery of real-time prices
will allow users to average over a
longer time period, making manip-
ulation less rewarding and less
harmful. We will also need to do
spot checks that trades have even-
tually been settled.
Any manipulation should lead to
automatic disqualification by the
FSA (soon to be FCA). But we should
not put all the responsibility onto
the supervisor. In the end, the
banks must look after themselves
and their clients.
Dr Tom Kirchmaier is lecturer in busi-
ness economics and strategy at
Manchester Business School and a fellow
of the Financial Markets Group at LSE.
TUESDAY 3 JULY 2012
TOM KIRCHMAIER
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Libor needs swift
modernisation to
recapture trust
G
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Facebook Inc
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TUESDAY 3 JULY 2012
18
cityam.com
A
S Barclays shares bounced
back yesterday, this served as
an important reminder to
retail traders that the
markets are not rational and it is
easy to get your fingers burned.
Anybody set up to take a short
position on the FTSE open would
have been hurt as the bank went
on to be one of the strongest
performers of the London session
up 3.4 per cent on the day to finish
at 168.4p. But why? The public may
have received its sacrificial offering
in the form of chairman Marcus
Agiuss resignation and the move
may have taken some pressure of
chief executive Bob Diamond, who
is due to testify to the Treasury
select committee on Wednesday
but this does not change the
fundamentals of the stock. Nor
does it affect last weeks 290m
fine for abusing the BBA Libor
estimated interest rate, or the
possibility of more heads
tumbling. Although weve been
spared a Leveson-type public
enquiry, with Hugh Grant grilling
Bob Diamond about the effects of
a shifted Libor quote on a turbo
swap position there will be a
parliamentary inquiry into the
Libor scandal.
But this is nothing new once the
markets got the scent of blood, it
seemed that spread betters were as
keen to short Facebook as retail
investors were keen to blow the
school fees on buying stocks in the
first place. Trading according to the
news headlines is the most straight-
forward and easy to understand
approach out there a bank receiv-
ing publicity is easier to grasp than
a bullish engulfing candlestick pat-
tern on a chart. According to Angus
Campbell, head of sales at Capital
Spreads, sometimes markets simply
over-react to headlines and share
price movements can go too far.
This is certainly the case with
Barclays, where its share price
plummeted some 15 per cent after
Barclays stabilises as
value investors return
The resignation of Marcus Agius does not change Barclays fundamentals
Beware of trading
on public sentiment,
writes Craig Drake
TRADING MANAGEMENT WEALTH
THE TIPSTER
Hoping for a high-flying statement
B
UDGET airline Easyjet will be
hoping that the Eurozone crisis
is not going to put off people
from travelling this summer, as
it issues its a trading statement on
Thursday. Its share price has done its
own share of high flying, putting on
over 30 per cent in 2012. With the far
from clement conditions weve been
experiencing in the UK, who doesnt
need a holiday? Capital Spreads
quotes a price of 528.3p-531.2p for
EasyJet.
BSkyB has evolved into a three-
dimensional company, with products
and services offered through the
television, through online media and
now through handheld devices. The
company dominates the pay-per-
view sports market and innovative
new hardware has given the company
a definitive edge. The share price
suffered following the News Corp.
acquisition fiasco, and in the short
term it slipped back from its range
highs on Friday. But with full-year
results due on 26 July, there are three
weeks to price in any upside
potential. Spread Co quotes 688.45p-
689.95p for BSkyB.
Investors will be looking for updates
on exploration activity, as well as
production, from Tullow Oil when it
releases a trading statement
tomorrow. The company reported
reservoirs in late March and increased
estimates in May. Investors will be
hoping to see positive reports from
its most recent trading activity in
French Guiana. A positive reading
from the recent Ghana drilling project
in the Jubilee Field will also likely act
as a catalyst for upside. Tullow
experienced a number of setbacks
after initial production got underway,
and so investors will be looking for
details from the report of when full
production will be resumed. CMC
quotes a price of 1,493.99p-
1,494.99p for Tullow Oil.
CRAIG DRAKE
the news of the Libor fixing scan-
dal broke, and already yesterday
we saw buyers dip their toes back
into the stock thinking that its a
bargain. Other banks saw their
share price rise, but with it
unlikely that Barclays was the
only bank to spit in the soup,
other fines will follow. According
to Campbell, last weeks fall pre-
sented a great opportunity to
investors: Of course, theres no
guarantee that they will add to
yesterdays bounce, but after
such steep falls, its difficult not
to think that they are now a
buy.
The Libor scandal will continue
to run, but recent price action
has been a lesson to traders of
the dangers of trying to catch a
falling knife, and its a lesson
that is applicable to any stock
being pounced upon by the mar-
kets.
fx360.com
twitter.com/fx360 facebook.com/fx360
The contents of this column are provided for general information purposes only. One should consider the appropriateness
of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612
DAVID MORRISON
SENIOR MARKET STRATEGIST, GFT
Barclays PLC
26Jun 27Jun 28Jun 29Jun 2Jul
200
190
180
170
160
p
168.40
2Jul
Loans from the proposed ESM will not be senior to other debts
F
RIDAYS trading brought the first half
of the year to an extraordinary
conclusion. Risk assets soared, as
investors responded to news from the
EU summit. Expectations for a positive
outcome from the meeting were low to
non-existent. Yet, despite the well-
publicised objections by Germany in the
lead-up, European leaders cobbled
together an agreement to alter the way that
bailout funds can be used. European bailout
facilities will be used to recapitalise banks
directly. In this way, future loans
including the latest one for Spain will not
add to troubled countries debt loads. On
top of this, traders cheered the
announcement that loans from the
proposed European Stability Mechanism
(ESM) will not be senior to other debts. So
investors will be happier believing that their
existing holdings will not become
subordinate. The fact that this was already
implied in previous statements was
ignored.
But before all this can happen, a single
bank supervisor for the Eurozone must be
established, with European Central Bank
(ECB) involvement. This suggests a move
towards a banking union, although
supervision is a long way short of the
deposit guarantee scheme, or a bank
resolution authority, that many economists
believe is vital for the Eurozones continued
existence. European leaders also agreed to
negotiate closer fiscal cooperation and a
120bn (96bn) package to help stimulate
growth and job creation.
Much was made of the announcement
that funds from the European Financial
Stability Facility (EFSF) and ESM will be
used to buy up the sovereign debt of
troubled countries, with the aim of keeping
a lid on bond yields. Previously, the ECB
controversially bought sovereign debt of
troubled peripheral counties in the
secondary market through its Securities
Markets Programme. The ECB has held off
for over four months now, so it looks as if
the baton has been passed on. But it is
worth remembering that there is only
around 200bn left in the EFSF. The credit
facility in the ESM should total 500bn.
While significant, this will not be enough to
backstop Spain, let alone Italy. Of this
500bn, the ESM has paid in capital of
80bn; the rest is pledges from Eurozone
countries. In terms of which countries stand
behind the two funds, Germany provides
guarantees for 27 per cent; France for 20 per
cent; Italy for 17 per cent; and Spain 12 per
cent. In consequence, if yields on Spanish
and Italian sovereign debt rise back up to
danger levels, then these two countries
stand as significant guarantors to a bailout
fund that will be used to buy their own
bonds. Understandably, given the extent of
its potential liability, Germany opposes any
increase in the ESM.
Nevertheless, the summit has been
viewed as a major victory for France, Italy
and Spain, and a climb-down for Germany
as German Chancellor Merkel has always
insisted that liability and control must go
together. But as more flesh is put on the
agreement, the more likely it is that Germany
will insist on some conditionality. Already
there is talk that Germany wants individual
governments to be liable should their own
countrys banks fail to pay back bailout
loans. In addition, it has been reported that
Germany is ready to push for the
implementation of a financial transaction tax
(FTT), and banks will only be able to access
funds from the ESM if they are in countries
that have signed up to the new tax.
The bullish view is that the agreements
made at this EU summit have broken the
chains linking sovereign and banking risk.
Many also see progress towards political and
fiscal integration, which will, it is hoped,
ultimately keep the Eurozone together and
so ensure the survival of the euro. An
alternative view is that EU leaders have once
again come up with yet another short-term
fudge, which simply buys the Eurozone a bit
more time. Peripheral countries remain
burdened by debt and solidly in recession
with no apparent way of achieving economic
growth. Last weeks summit has done little to
change this fundamental dynamic.
ECB MANOEUVRES HAVE NOT
CHANGED THE EU DYNAMICS
BY CRAIG DRAKE
G
E
T
T
Y
Shoppers are not as keen as they were
tive trades panel, the report presents
mixed fortunes for retailers: It is
notable that sales were still considered
to be below par for the time of year.
McKenna adds: Weak consumer confi-
dence and uncertainty over the eco-
nomic outlook are still putting a brake
on consumer spending across the
whole retail sector.
POWER OF THE POUND
The gulf between wages and inflation
has fallen, slowing the erosion of the
purchasing power of the pound in
your pocket. Consumer Prices Index-
based inflation has been flattened to
2.8 per cent a long way from the 2011
rate of 5.2 per cent. At the same time,
wages are increasing by around 2 per
cent on average. But while inflationary
pressures on the family shop have
been eased, behaviour is going to lag
macroeconomic data released by quasi-
autonomous government depart-
ments, and the public will need
greater incentives to increase their
shopping. Tesco for one has seen its
share price hit by spending power tak-
CURRENCY STRATEGIST
CHRIS VECCHIO
My pick: Short Aussie dollar-dollar and Aussie dollar-yen
Expertise: Fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
Technical divergences are building and it appears we have
completed five waves up in the Aussie dollar-yen and Aussie
dollar-dollar, the FX markets barometer of risk-appetite. As
such, we expect declines which should be provoked by
market participants not buying the Eurozone summit results.
With QE3 off the table until the end of the year, the US dollar
should start to perk up and attract new buyers with ease once
European concerns return in the coming days and weeks.
ANALYST PICKS
Doing the UK supermarket sweep
T
HE jubilant spending during
the Queens diamond jubilee
may have given the high
streets a boost, and inflation
is being slowly reined in, but UK
supermarkets are still facing a
difficult year ahead.
According to the Confederation
of British Industry (CBI), the
Queens Diamond Jubilee boosted
retail sales in June, but shop sales
were down for the time of year. In
its June survey, the CBIs distribu-
tive trades index came in at 42 per
cent its strongest figure in 18
months. Retailers followed up a
rise in retail figures in May with
another stint of strong growth in
both sales and orders.
The Jubilee celebrations, and the
extended weekend that came with
it, gave the high streets a boost.
But celebrations are unlikely to
continue into July for the super-
markets. According to Judith
McKenna, chair of the CBI distribu-
STRATEGIST
ILYA SPIVAK
My pick: Long dollar-yen
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I bought dollar-yen at 78.96 expecting an advance after the
Fed opted not to launch QE3 in June, helping to support US
yields relative to their Japanese counterparts. The pair has
already hit its initial target at 79.69 and I am now aiming for
80.38 as the next significant level. Prices are showing a
bullish engulfing candlestick pattern above the bottom of a
rising channel set from the 1 June low, hinting at an upswing
ahead.
CHIEF STRATEGIST
JOHN KICKLIGHTER
My pick: Short Aussie-dollar and long euro-Swiss franc
Expertise: Fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
Surprise policy commitments from the EU this past week
generated a tremendous swell in volatility for euro and risk-
based assets. Is this a trend shift? I took profit on Canadian
dollar-Swiss franc last week, but reentered at SFr0.9270, as
its generally risk neutral. My euro-Swissie will be a slow burn
in a questionable euro recovery. For a risk view, I am looking
for a distant Aussie dollar-dollar parity break. If it gets down
there, its likely a trend.
ing a knock not just in Britain, but
in emerging markets too. The
Chinese slowdown has hit the
largest UK-listed grocer, with newly
implemented shopping hours legis-
lation in South Korea also affecting
profits.
Closer to home, its the race to the
doorstep for online retailers which
could cause the biggest shake-up.
Sainsburys and Tesco are making
substantial gains over initial pio-
neers Ocado, narrowing delivery
windows and improving product
quality. And its difficult to see
Ocado fighting back at 75p it is
now a long way from its February
2011 price of 285p. Though still prof-
itable, its average basket size has
shrunk to 113.10 and will have to
fight hard to prevent it shrinking
further.
The supermarkets may have had
cause to join in with the ticker-tape
celebrations last month. But in the
long term, it looks like a number of
UK supermarkets will be left on the
shelf this year.
TUESDAY 3 JULY 2012
19
cityam.com
ROAST has been around for six
years. There was a time when it
was one of the foodiest restaurants
in London, by which I mean the
sort of place those on the cutting
edge would go to with their mates.
Roast still does British cuisine (pretty) well
doesnt disappoint. Everything in
sight is painstakingly authentic
the bread arrives in cloth sacks; you
can see every imperfection in the
earth-tone crockery, which was pre-
sumably crafted by simple mountain-
folk, and the low-hanging fishbowl
light fittings cast an appropriately
dim, lazy glow.
The food is clean, crisp and impossi-
bly sometimes infuriatingly
healthy: smoked, pickled, rolled in
burnt hay or, more often than not,
just served raw. It tastes like it was for-
aged from the icy tundra by a buxom
fishermans daughter. Even the posh
pork scratchings were deceptively
light part of me wanted to run
home afterwards and smear myself
in lard and chocolate.
At its best, the food is superlative.
The asparagus poached, fried and,
of course, raw with pheasants egg,
was a highlight: just the right combi-
nation of crispy and earthy. Other
dishes were harder to love the lump-
fish roe with onion sauce and chick-
North Road is studiously authentic all smoked wood and plunging fishbowl light fittings.
This Danish gem is
always interesting,
says Steve Dinneen
TUESDAY 3 JULY 2012
20
cityam.com
LIFE&STYLERESTAURANTS
EPISODE 60 RETURN OF SUNDAY LUNCH
Weve reinstituted Sunday lunch chez
Cashman. My parents sit at one end of
the table and Emmas at the other.
Emma and I are scheduled to sit
between our respective in-laws but
would both prefer not to do so. Maria
and Noel sit mid-table, opposite one
another. They are intended to operate
as buffer states but as I survey the
scene, I wish wed also invited Kofi
Annan and Ban Ki-moon. A diplomatic
incident is surely on the cards.
Meanwhile, the twins sleep peacefully
upstairs.
I approach the table with a decent
bottle of claret. Noel chose this, I
announce to the grandparents. Its the
truth. Weve had a rather successful
and inexpensive run recently, following
Noels wine selections. Hes quite the
little sommelier. Grandparents cluck,
CITY DAD
although I can see Emmas father
scanning the kitchen in the hope that
weve backed Noels judgment to the
tune of at least half a case.
No, daddy, corrects Noel, waiting
for the admiring grandparental white
noise to abate. I dont smell it. I choose
by the label. Ha-has all round. And
then, in the absence of skilled
diplomatic intervention, Noels in like
Flynn, continuing his offensive. Daddy,
isnt it if the Rozzers are after you you
should put your hands in your pockets,
stay silent and keep walking? I sense
my fathers mischievous influence. Noel
turns to his maternal grandparents,
between whom Im sitting. And if you
want to rob someone, the best thing is
to break down their door with an axe,
sneak into their bedroom and steal their
keys and leave your keys. Then the next
night let yourself in and steal all their
stuff.
Emmas father chokes on his peas.
Her mother reaches for the bottle of
claret. And my father feigns deafness,
barking What? What was that, little
man? City Dad will be continued next
week. For previous episodes, please see
www.cityam.com
RESTAURANT
NORTH ROAD
69-73 St John St, EC1M 4AN
Tel: 020 3217 0033
FOOD hhhhi
SERVICE hhhhi
ATMOSPHERE hhhhi
Cost per person without wine: 75
RESTAURANT
ROAST
The Floral Hall, Stoney Street, SE1 1TL
Tel: 0845 034 7300
FOOD hhhii
SERVICE hhhhi
ATMOSPHERE hhhii
Cost per person without wine: 45
Back then in 2006 the cutting
edge was British food, locally
sourced and (seemingly) simply
made. I recall once going there
and receiving terrible service but
mindblowing food. A friend once
boasted of the time he ate heart at
Roast and loved it.
But with Marcus Verberne
(formerly of Caprice Holdings),
newly at the helm, I thought it was
high time I went back.
So how does Roast fare in the
gastronomical London of 2012,
when dayboat fish and local
asparagus no longer elicit oohs
and aahhs?
Not badly. The food is still fresh
and it still has one of the best
views in the area of Borough
Market and the streets
surrounding. But on entering
after a hiatus of several years I
couldnt help but notice the decor
felt out of date. The bar furniture
was slightly corporate, and there is
something slightly lacking in style
about the main dining room, too.
And the food was a little pricey,
we thought. Starters, which
include the likes of Loch Duart
salmon with soused cucumbers
and Atlantic prawn cocktail, are in
the 10-15 region and while
tasty probably wont blow your
mind. You can rest assured,
though, that whatevers in season
will be on the plate: heritage
tomatoes feature prominently
now; when we visited, it was all
about asparagus.
Mains start to get a bit more
interesting: at least, they sound
interesting. Goat curry;
chargrilled lamb neck with spelt
and yoghurt salad. We had
gorgeous-sounding duck and fish.
The fish a white dayboat catch
was cottony and well-made, but
there was some disappointment
with the duck, which was too
chewy.
The puddings are impressive. In
particular, the sticky date pudding
with neighbouring Neals Yard
creme fraiche. And who wouldnt
want Green & Black's chocolate
and sea buckthorn berry mousse?
Exactly.
Theres also a good English wine
selection we amused ourselves
with Chapel Down fizz and some
lovely white to go with. Roast is a
good restaurant, but its no longer
outstanding.
Zoe Strimpel
S
CANDINAVIA is having quite a
moment. We watch its TV
shows, we wear its jumpers, we
buy its furniture (while hoping
people wont notice it came flat-
packed in a cardboard box) and, at
least since Noma won the Worlds
Best Restaurant award, we eat its
food.
There is something reassuringly
real about our imagined version of
Scandinavia a kind of amalgama-
tion of Sweden, Norway and
Denmark, which ignores the millen-
nia of grand, individual history of
each and replaces them with a
Disneyfied fairytale-land of glacial
streams, wild elk and ruddy-cheeked
dames wearing heavy-knit jumpers.
North Road, located somewhat
counter-intuitively on St John St,
Roasts airy and light dining room commands great views of Borough Market.
en skin was rather insipid, no matter
how much I tried to convince myself
otherwise.
If there is ever a toss-up between
interesting and convenient,
Danish chef Christoffer Hruskova will
opt for the former. Quail eggs arrive
in a ceramic pot atop a mound of hay.
I didnt have any cutlery do I use my
fingers? Can you eat the hay? (yes and
definitely not, I discovered).
But, for the best part of 300 for
two people (including the cheese and
wine tasting menus we didnt
exactly hold back), its what I expect
something Ill still be talking about
in a few months time. For that kind
of money I want an experience: a glo-
rious failure (which North Road isnt)
is preferable to something dispas-
sionately tasty, which you can get for
a third of the price.
To finish, we were served what
looked like a bonsai tree, its foliage a
wisp of powder-pink candyfloss, dot-
ted with tiny leaves. By this stage, we
didnt worry about eating with our
hands (it would take a particularly
self-loathing member of the middle
classes to eat candyfloss with a knife
and fork). There was, however, a dis-
cussion between my mother and I
over whether you should attempt to
eat the soil. It certainly looked like
real earth and it had a stick poking
out of it, which I tend to use as a rule
of thumb for not putting something
in my mouth. I swallowed a finger-
ful anyway. North Road is that kind
of place give it a try, you might be
pleasantly surprised. It turns out you
can eat the soil.
North Road is a Scandinavian joy
21
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7pmThe Simpsons 8pmAshley
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1994. 12.45amRoad Wars 1.15am
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Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6
7 8
9
10 11
12 13 14 15
16 17
18 19
20
21
22
16 15 24
16 6
17 33
6 15
29 10
12 11
14 28
13 12
34 10
14 18
8 3 14
11
12
10
35
22
12
30
7
13
23
30
10
7
13
6
28
4
17
41
20
11
16
ACROSS
1 Small box
for holding
valuables (6)
6 Person who serves
at table (6)
7 Thin, scanty (6)
9 Attentive (7)
10 Famous American
battle, Davy
Crocketts last (5)
12 Combustible
substance derived
from organic
matter (7)
17 Paces (5)
18 Act as a go-
between (7)
20 Take for
granted (6)
21 Hairy facial
growths (6)
22 Rests on bended
legs (6)
DOWN
1 One of two actors who
are given the same
status in a lm (2-4)
2 Insect considered divine
by ancient Egyptians (6)
3 Afectedly dainty
or rened (4)
4 Characteristic mental
attitude (7)
5 Variety show with
topical sketches
and songs (5)
8 Expression used
to frighten away
animals (4)
11 Imitative behaviour (7)
13 Puts into service (4)
14 Bean or pea plant (6)
15 Things of value or
usefulness (6)
16 Number indicated by
the Roman VII (5)
19 Duty (4)
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G R E E N N I G E R
A B M N I
M U M B A I S I G N
B I S K I G
L E N S E D E W
E C A R R I E R C
P E R A R A T A
L D A B T C
A N T I L O G O U T
S N E I U
T O W E L A N G U S
1 6 8 5 1 2
7 4 8 9 9 3 1
1 2 5 3 8 6 9 7
8 7 9 4 8 9
3 7 1 8 9 2 4
2 6 1
8 5 4 9 7 6 3
3 7 9 9 4 3
1 4 3 2 3 7 2 1
6 4 1 9 8 5 7
9 1 5 2 3 1
4
4
4
4
4
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4
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The nine-letter word was
RECAPTURE
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
TUESDAY 3 JULY 2012
IMAGINE
BBC1, 10.35PM
Paul Simon recalls the making of his
1986 album Graceland, returning to
South Africa to reunite with musicians
who played on the record.
TODAY AT WIMBLEDON
BBC2, 8PM
John Inverdale introduces highlights
from the womens singles quarter-
finals on day eight, and looks ahead to
tomorrows mens matches..
GORDON BEHIND BARS
CHANNEL4, 9PM
An inmate Gordon Ramsay believes
could potentially become a chef
continually gets into trouble with
prison officers.
TVPICK
FORMER Chelsea manager Andre
Villas-Boas is today expected to be
announced as Tottenhams new
manager as the search to replace
the sacked Harry Redknapp
reaches its conclusion.
Tottenhams failure to secure
qualification for the Champions
League was the overwhelming
factor in Redknapps departure
from White Hart Lane and Villas-
Boas who is expected to sign a
three-year contract now remains
the outstanding candidate to be
his successor, despite his failure to
impress at Chelsea.
Villas-Boas was last season
sacked after less than a year in
charge at Stamford Bridge and his
replacement, Roberto di Matteo,
thereafter inspired them to win
the FA Cup and Champions
League. He regardless continues to
be considered one of European
footballs brightest talents,
however, and was also considered
for the vacant Liverpool job before
Brendan Rodgers was eventually
lured from Swansea City.
One of Villas-Boass immediate
tasks at Spurs will entail a
restructuring of their playing
personnel. As well as Emmanuel
Adebayors departure, the futures
of the influential Ledley King and
Luka Modric remain uncertain.
Villas-Boas set
for three-year
deal at Spurs
BRITISH No1 Andy Murray will today
resume his efforts to advance to the
quarter-finals of Wimbledon after
rainfall yesterday halted the momen-
tum built throughout his fourth-
round match against Marin Cilic.
Intermittent drizzle transformed
into consistent rainfall during a
contest in which Murray had taken
control, a promising turn after early
exchanges had resulted in regular
clutching of the troublesome back
that had marred his performance at
last months French Open.
Murray presently holds a 7-5, 3-1
lead and any frustration felt at the
break in play that coincided with a
chance to close in on the second set
will no doubt be compounded by the
loss of a potential days rest in his bid
to reach the final at the All England
Club for the first time in his career.
Given the early eliminations of
rivals Rafael Nadal, the world No2,
and Andy Roddick, a previous
Wimbledon finalist, Murrays
chances of reaching that first final
and potentially even winning his
first ever grand slam are as kind as
they have ever been, though British
tennis fans will have been reminded
of the cruel intervention of rain
when Tim Henman appeared on the
brink of the 2001 final during his
semi-final against Goran Ivanisevic.
Henman had been leading the
Croatian by two sets to one when play
stopped, contributing to his loss of
momentum and eventual defeat, and
he never again became as close to
achieving that particular feat.
Six-time champion Roger Federer
ensured Murray was not alone in
being undermined by both the
weather and back problems, however.
The Swiss received treatment for dis-
comfort in his back during the first
set, and also experienced a 40-minute
break in play because of the rain,
though he regardless secured a 7-6 (7-
1), 6-1, 4-6, 6-3 victory over Xavier
Malisse to advance to the tourna-
ments final eight against 26th seed
Mikhail Youzhny and dismissed any
IN BRIEF
Klitschko set for final fight
n BOXING: WBC heavyweight
champion Vitali Klitschko will fight
Germanys Manuel Charr in Moscow on
8 September, and may retire afterwards
to pursue a career within politics. I will
make a decision after the election, he
said. Charr is young, hungry and
undefeated. He is afraid of nobody,
always marching forward.
Lavezzi latest to join PSG
n FOOTBALL: Argentinian international
forward Ezequiel Lavezzi has agreed a
four-year contract to leave Napoli and
sign for Paris St Germain. There is a
great project here, the opportunity to
win titles and I want to contribute to
that, said Lavezzi. This club will be
even more important in the future.
Fabio jumps through Hoops at loan
n FOOTBALL: QPR have signed
Manchester United left-back Fabio da
Silva on a season-long loan. Im so
happy to be here, he said. This loan is
so important for me in terms of my
career. I want to play as many games as
possible here. Fabios twin brother,
Rafael, meanwhile, has signed a new
four-year contract with United.
Dernbach to miss rest of series
n CRICKET: Surrey bowler Jade
Dernbach will miss the remainder of
Englands one-day international series
against Australia with a side strain
suffered during their six-wicket victory
on Sunday. But England are hopeful
James Anderson will be fit for the rest
of the series, despite his groin injury.
WBO lightweight challenger Kevin
Mitchell has vowed to use his only
professional defeat as his motivation
to overcome champion Ricky Burns
when they fight in Glasgow on
22 September.
Mitchell suffered a third-round
stoppage loss to Australias Michael
Katsidis in May 2010 but has won his
last two fights since then and
believes it is the pain of that defeat
that has inspired him to improve.
Since the Katsidis fight Ive never
looked back. Everything is perfect
now, said Mitchell.
I cant get up for the normal
Katsidis loss will inspire me to
victory over Burns, says Mitchell
fights, I want the big names and
the big names only. Theyre the
ones that deliver the big money.
I want the names like [WBA
champion] Brandon Rios. Ricky
Burns generates more money than
any other fight in this country so
thats why Im fighting him. After
this fight well go on from there.
Burns was the superior fighter
when sparring Mitchell last year
but the latter is adamant that it
was only his lack of fitness that
allowed the Scot to flourish.
I wasnt fit when we sparred,
he said. He was and got the better
of me. He was too fit and strong at
the time.
TUESDAY 3 JULY 2012
22
SPORT
cityam.com/sport
BY DECLAN WARRINGTON
BY DECLAN WARRINGTON
BY DECLAN WARRINGTON
@cityam_sport
WORLD CHAMPION Mark
Cavendish has revealed his desire
to win the second stage of the
Tour de France yesterday was
inspired by a greater goal to
make history.
Though he has previously
insisted the prospect of winning
an Olympic gold medal at London
2012 is his greatest ambition,
Cavendish performed
exceptionally during yesterdays
207.5-kilometre test from Vise
to Tournai to suggest he may still
be considering the bigger
picture with Team Sky throughout
the Tour.
We knew it was going to be
hard here this year, Cavendish
said after his maiden victory as
world champion.
I always say I wanted to make
history. There are not many
better ways to make history than
by being part of a team winning
the Tour de France with a
British rider.
It was always going to be
difficult to win stages and
if anything it made me
more relaxed.
In the past I always had a
dedicated team to a sprinter. With
a team I should win most of the
time so there was always that
pressure to win.
Chance to make
history pushes
Cavendish on
BY SPORTS DESK STAFF
concerns that he continues to carry
an injury. My back is okay, it started
to feel better as the match went on,
he said.
The day was far smoother for
world No1 and reigning champion
Novak Djokovic, who took just 90
minutes to dismiss fellow Serb
Viktor Troicki in straight sets during
a clinical 6-3, 6-1, 6-3 victory. I think
I played really well throughout the
whole match, Djokovic said,
though he must wait to learn the
identity of his quarter-final oppo-
nent after Richard Gasquets match
against Florian Mayer was also dis-
rupted by the weather with the lat-
ter leading 6-3, 2-1.
While the mens tournament
remains bereft of any true clarity,
the womens yesterday became far
clearer. Top seed Maria Sharapova
and four-time champion Kim
Clijsters suffered surprise defeats,
the latters love affair
with Wimbledon drawing to a
cruel conclusion.
Clijsters will retire after the US
Open, making yesterdays match her
last at the British grand slam, and
conceded that her conqueror,
German eighth seed Angelique
Kerber, had deserved to win.
I just had the feeling that there
was absolutely nothing I could have
done to have won that match, said
Clijsters. My opponent was better on
every level. That was all I was
thinking about.
I know that every time Ive played
here Ive given my best, and thats the
only thing that I can do.
TODAYS HIGHLIGHTS
Mens singles
n A Murray [4] v M Cilic [16]
n D Ferrer [7] v J Del Potro [9]
n M Fish [10] v J Tsonga [5]
Womens singles
n S Williams [6] v P Kvitova [4]
n A Radwanska [3] v M Kirilenko [17]
n T Paszek v V Azarenka [2]
Rain results
in misery
for Murray
Troublesome weather interrupts
play with British hopeful in charge
British No1 Andy Murray hopes to
reach the final at Wimbledon for the
first time in his promising career
T
wo great victories dominated
play this weekend, with Tiger
Woods winning the AT&T
National title at Congressional,
America, and Waless Jamie
Donaldson winning his first
European tour title at the Irish Open.
I firmly believe that that win
shows Woods to be back to his best.
He required his mental strength to
first overcome the overnight leader,
Brendon de Jonge, and then when
he and Bo Van Pelt were so close by
the end no one else was near
them and they were even with
two holes remaining, so winning
at that point showed what he
is about.
The victory was Woodss 74th PGA
Tour win and takes him above Jack
Nicklauss record. For him to do that
at 36, and to still be in such good
physical condition, I would
definitely also back him to surpass
Nicklauss Major win record. Woods,
on 14, needs five more victories to
do so, but hes got time on his side
Nicklaus won his last Major at the
age of 46.
If Woods were to stop playing
tomorrow Id already put him in
the top three players of all time,
but hes now said that he is
targeting Sam Sneads record of
82 PGA tour victories. Though its
a case of one step at a time and
thats how it should be treated,
again, at his age, he can certainly
do it.
Donaldsons was also a great
result. Hed said he was using the
event to prepare for The Open at
Royal Lytham & St Annes later this
month and it brought his first
European tour title. Aged 36 and
with that being his 255th
European tour event, he thoroughly
deserved the win and the
tournament truly belonged to him.
Sam Torrance OBE is a multiple
Ryder Cup-winning golfer and media
commentator. He has won 21
European Tour titles in a career
spanning 40 years and famously sank
the putt that clinched victory for
Europe in the 1985 Ryder Cup. He also
captained Europe to glory in 2002.
Follow him on Twitter @torrancesam
23
G
E
T
T
Y
Mark Cavendish edged the second stage
of the Tour de France by finishing half a wheel
in front of Andre Greipel
cityam.com
TUESDAY 3 JULY 2012
BY DECLAN WARRINGTON
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GOLF
COMMENT
SAM TORRENCE
Woodss win shows he is back to his best
Sharapova lost 6-4, 6-3 to German
15th seed Sabine Lisicki to bring to an
end her bid to be the first since
Serena Williams in 2002 to win the
French Open-Wimbledon double.
[Lisicki] did many things better
than I did, Sharapova said. She
played very well. I could have done
things differently but not today.
The Russians exit strengthens
Williamss hopes of winning her fifth
Wimbledon title. After yesterdays 6-1,
2-6, 7-5 victory over Yaroslava
Shvedova, she today faces a quarter-
final against Petra Kvitova.
Ex-England coach is
only interested in
footballing affairs
TEAM GB manager Stuart Pearce is
adamant ticket sales and
merchandising will be far from
his mind as he prepares his squad
to compete for success at
London 2012.
Pearce has been fiercely
criticised for his decision to omit
former England captain David
Beckham from his squad despite
the midfielders influential and
dedicated support of Londons bid
to host the Olympic Games. Many
observers consider Beckham to
have been a key ticket seller for a
sport in which Team GB do not
traditionally feature and therefore
fear his absence will consequently
be a significant disappointment
for those hoping to witness the
denouement of a stellar career,
and though Pearce has admitted
to admiring Beckham and
sympathising with the fact that he
will miss the Games, he has
defiantly defended his position by
insisting that ticket sales are
simply not his concern.
In regard to ticket sales and
merchandise: Im a football man
and I pick solely on football
ability, said Pearce. I have to
back my opinion and thats what I
have done.
Ive got a list of names written
down now, who I think ability-wise
are good enough to do a job. I
didnt pick on personality, I didnt
pick on ticket sales and I certainly
wasnt picking on nationality.
To be honest I cannot tell you
how many players there are from
England and Wales. The 18 players
are all Olympians now and thats
the only way I view them.
Pearce was a senior figure under
Fabio Capello when the latter was
the England manager and, while
the Italian included Beckham as
part of his backroom staff during
the 2010 World Cup when he was
injured, Pearce has insisted that
Beckham will be extended no such
courtesy, even though though he
has undoubtedly displayed a
genuine passion for the Olympics.
That wont be the case with
regards to David, he said. With
what he's done to bring the bid to
these shores, I for one would
champion him for what he's done
for the cause. But we only have
seven passes [for backroom staff].
We have no passes for that.
The players have to be prepared
to come through the door on form
alone and that happens to be the
case with staffing too: they have
their role to play.
Olympic rules permit the
inclusion of three players over the
age of 23 and Beckhams omission
comes with the inclusion of
former Manchester United team-
mate Ryan Giggs, Liverpool striker
Craig Bellamy and, somewhat
surprisingly, Manchester City
defender Micah Richards.
Pearces squad comprises of five
Wales internationals and 13
Englishmen. The squad does not
include any Scottish or Northern
Irish players but within those
selected lies a hint of how he may
wish to play.
Steven Caulker, Neil Taylor, Joe
Allen and Scott Sinclar were
among the key players in
establishing Swansea City in the
Premier League during a season in
which they were widely praised for
their pleasing brand of passing
football. That no other club
features more than two players
suggests Pearces tactics may well
replicate those of the Swans.
Pearce: Ticket sales dont
concern me just players
Full Team GB Olympics Squad
Goalkeepers
n Jack Butland, England
n Jason Steele, England
Defenders
n Micah Richards, England, over 23
n Steven Caulker, England
n James Tomkins England
n Craig Dawson England
n Ryan Bertrand England
n Neil Taylor Wales
Midfielders
n Ryan Giggs, Wales, over 23
n Aaron Ramsey, Wales
n Scott Sinclair, England
n Tom Cleverley, England
n Joe Allen, Wales
n Jack Cork, England
n Danny Rose England
Strikers
n Craig Bellamy, Wales, over 23
n Daniel Sturridge, England
n Marvin Sordell, England
Team GB manager Stuart Pearce was a coach with England under Fabio Capello from 2008 until the Italians February departure