AN EMOTIONAL Andy Murray insisted he is getting closer to winning a Grand Slam

tournament after losing the Wimbledon mens singles final in four sets to Roger Federer
yesterday. Murray was widely deemed to have won over some previously sceptical fans, who
have found him dour, with a gracious and tearful speech following his defeat.
TEARFUL MURRAY LOSES FINAL BUT WINS HEARTS
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Experience Day. Register at www.cassmba.com
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Date: 14 July 2012
Time: 10.15 15.30
BRITAIN will fall behind the rest of the
world unless a bold, brave stance on
airline growth is adopted by the gov-
ernment, Virgin founder Sir Richard
Branson warned yesterday.
Speaking at the launch of new Virgin
Atlantic routes to Cancun and
Moscow, Branson hit out at leaders
who stand in the way of expansion at
close-to-capacity Heathrow and impose
steep taxes on air travel.
What we ought to be talking
about is wholesale expansion to
Asia, to Africa, to South
America, and options on
routes that are not current-
ly serviced, he told
reporters.
But its impossible, and its
been impossible for the last 15
years. Britain came to a full
stop 15 years ago.
Millions of travellers
across the world are
going to other European
cities rather than com-
ing to the UK and that
affects every single
aspect of the UK. In time
it will turn into a third
world country
its that serious.
www.cityam.com FREE ISSUE 1,669 MONDAY 9 JULY 2012
BY MARION DAKERS IN CANCUN
BRANSON: UK
IS AT RISKOF
JOINING THE
THIRD WORLD
Certified Distribution
30/04/12 till 27/05/12 is 132,076
TOP BANKS grip on the market
would be broken if consumers
could change banks as easily as
they change mobile phone
networks, Labour leader Ed
Miliband will say today.
He will also call for the big five
high street banks to sell off up to
1,000 branches, allowing two
smaller institutions to join the big
players, in a speech that accuses
the coalition of failing to restore
BY TIM WALLACE competition to the sector in the
wake of successive crises.
However, the government
believes it is already taking
sufficient steps as Lloyds is selling
hundreds of branches to the Co-Op.
Furthermore, new rules will create
a new account switching service by
September 2013.
Meanwhile reports yesterday
claimed Barclays is looking at
spinning off its investment bank in
the wake of the Libor scandal.
Virgin founder Richard Branson says the UK must
adopt a brave stance on aviation policy
Branson said that Virgin will partici-
pate in the coalitions ongoing avia-
tion review, but only if it reverses its
farcical blanket ban on considering
a third runway at Heathrow.
If by some miracle they think
Heathrow isnt the answer, then we
will go along with it. But all the
experts think Heathrow is the answer,
so I think it will be very surprising if
its not, he said.
Branson was speaking as Virgin
Atlantic unveiled its latest bid to mus-
cle in on BAs dominance at Britains
biggest airport, pledging to launch
a new route to Moscow next
year but only if it can take over
some of BAs landing slots at
the hub.
BA has been forced to sell 12
landing slots at Heathrow
following competition
concerns surround-
ing its takeover of
BMI earlier in
the
year. Virgin said it will bid for all 12
slot pairs and use some of them to
start flights to Moscow using new
A330 planes from 2013.
We will know by Christmas what
routes we can fly, Virgin Atlantic
Airways chief executive Steve Ridgway
told reporters. The competition that
we have provided to BA on the long-
haul destinations, we can now do that
on short haul.
Virgin Atlantics head of North
America, Chris Rossi, said the firm had
been looking to fly to Moscow for 15
years, but had until now struggled to
gain a toehold in the market.
In a separate development a group of
influential backbench Conservative
MPs will today make a stand against
their party and call for two new run-
ways to be built at Heathrow.
The report by the Free Enterprise
Group says a third runway would
only provide a stopgap solution.
One solution is to grant plan-
ning permission for both a third
and fourth runway at the same
time, allowing Heathrow to
upgrade itself to a truly world class
hub, the report says.
FTSE 100 5,662.63 -0.53 DOW 12,772.47 -124.20 NASDAQ2,937.33 -38.79 /$ 1.55 -0.01 / 1.26 +0.01 /$ 1.23 -0.01
SEE SPORT: Pages 22-23

ALLISTER HEATH: Page 2

Labour: changing banks should
be as easy as switching phones
LONDON2012
days to go
18
BUSINESS WITH PERSONALITY
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
IN BRIEF
Greek government wins approval
nGreeces new conservative-led
government today won parliamentary
approval, but faced the much tougher
task of convincing European partners
and the IMF to give it more time to
meet the terms of its bailout. There had
been little doubt the government
would sail through the confidence vote
after a heated three-day debate in
which it pledged to win back the trust
of foreign lenders. All 179 ruling
coalition deputies backed the motion
in the 300-seat parliament. After
demanding a long list of changes to
Greece's latest rescue package when it
took power last month, the three-party
coalition has struck a more conciliatory
tone in recent days as it faces the
prospect of running out of cash
without more aid.
Egypt to reconvene parliament
n Egypts new president yesterday
ordered a parliament dominated by his
Islamist party to reconvene,
challenging the authority of the
generals who had dissolved the
assembly in line with a court order.
President Mohammed Mursi's decree
appeared to catch off guard the
generals who handed power to him on
30 June. State media said the army's
supreme council held an emergency
meeting and a council member,
declining to be named said the
generals were not given prior warning.
Before the handover, the army put
some curbs on the presidency and gave
itself legislative powers. Mursis
decision hands those powers back to a
parliament that was led by his allies in
the Muslim Brotherhood.
Bank of England deputy
faces Libor quiz from MPs
PARLIAMENT will today question
Paul Tucker, the deputy governor of
the Bank of England, over his role in
the Libor-fixing scandal that
brought down top executives at
Barclays bank and threatens to
cause lasting damage to the reputa-
tion of the financial system.
Tucker made the unusual decision
to request an appearance in front of
the influential Treasury select com-
mittee at the earliest opportunity
after Barclays released an account
of a telephone conversation he had
with Bob Diamond, then head of
Barclays investment banking divi-
sion, in October 2008.
According to Diamonds memo,
Tucker said senior figures in
Whitehall were asking questions
about Barclays high Libor rate sub-
missions and may have implied that
the bank should lower its estimates.
Yesterday the official who dis-
cussed Libor submissions with
Tucker was widely named as cabi-
net secretary Sir Jeremy Heywood.
Tucker will be asked about the
minutes of a November 2007 meet-
ing he chaired where concerns were
raised about incorrect Libor rates.
Before the Bank of England was
dragged into the scandal Tucker
was widely considered to be the
favourite to take over as governor
Call for French business boost
French business urgently requires shock
treatment to cut labour costs and boost
its flagging ability to compete on
international markets, top economists and
business leaders have warned Francois
Hollande.
ArcelorMittal refuses to rule out EU
steel closures as demand falls
ArcelorMittal has refused to rule out
further site closures in Europe as the
global steel industry enters what some
observers fear could be a five-year spell
of overcapacity linked to signs of a severe
slowdown in demand and consumption in
China.
FTSE 100 total pension deficits soar
The total pension deficit at the UKs
largest companies has more than doubled
over the past year, hit by falling bond
yields and volatile markets. The combined
deficit rose from 19bn at the end of June
last year to 41bn at the end of May in the
annual analysis of 83 FTSE 100 companies
by actuarial consultants Lane, Clark &
Peacock, to be published tomorrow.
Asda joins race to replace
battered high street banks
The plunging popularity of banks has
prompted Asda to follow its closest rivals
in taking an aggressive step into the
world of personal finance.
Oil explorers get tax breaks to help
quit North Sea
Offshore oil explorers are to be given
deeds by the Treasury guaranteeing tax
relief to offset the multibillion-pound cost
of dismantling North Sea equipment.
BP is dragged into SFO bribery
investigation
BP is facing a Serious Fraud Office
investigation relating to work the
company has been involved with in
Azerbaijan.
German president tells Merkel to
come clean on EU debt deal
German president Joachim Gauck has
ordered Chancellor Angela Merkel to
clarify exactly what she agreed at the EU
crisis summit.
Boeing to expand lead in orders
over Airbus
Boeing looks set to start Europes big air
show with orders from at least two
leasing companies deals that should
help the US plane maker consolidate its
lead in orders over Airbus this year.
Thousands could lose internet
Thousands of people whose computers
were infected with malicious software
more than a year ago faced the possibility
of not being able to get online today.
SMALLER banks and building soci-
eties are benefiting from increased
current account business as con-
sumers become disillusioned with
big banks.
Metro Bank saw a 30 per cent
increase in new account enquiries
last week, and has increased call cen-
tre manpower by 13 per cent to cope
with demand. It typically opens 1,500-
2,000 new accounts each week.
New figures from the Co-operative
Bank show a 48 per cent increase in
the number of online customers
requesting to switch their current
account in the last two weeks.
Nationwide saw an 85 per cent
increase in the number of online
accounts opened last week, while
Norwich & Peterborough Building
Society saw applications double, with
a high proportion of these coming
from Barclays and NatWest, accord-
ing to Ewan Edwards, head of current
accounts at N&P, although an RBS
spokeswoman said there is no signif-
icant change in the current account
customers and that it was too early
to see any real change.
With politicians stressing that
banks must make the switching
process easier, Metro Bank spokes-
woman Beth Murray said a better
understanding of the switching
process would lead a number of cus-
tomers to smaller banks and building
societies.
Smaller rivals
pick up business
after rates scam
Deputy governor of the Bank of England Paul Tucker asked to be heard by the committee
2
NEWS
BY JANE HAMMOND
BY JAMES WATERSON
To contact the newsdesk email news@cityam.com
F
OR once, Labour has got it half
right. It will confirm today that
it wants to make it much easier
for current account holders to
change bank, in a bid to empower
consumers and to drastically improve
competition in retail banking. The
idea is to make switching bank as
easy as it is changing mobile phone
company by giving consumers
ownership of their bank account
numbers, in the same way that they
now own their phone numbers. Bank
account portability might sound like
a technical change but it would
revolutionise the entire financial
services industry and allow new
entrants such as Tesco to scoop up
market share very quickly.
Signing up students when they open
their first account, knowing that they
are less likely to leave than to get
divorced, remains a central strategy
EDITORS
LETTER
ALLISTER HEATH
Why it must be made much easier to switch bank accounts
MONDAY 9 JULY 2012
for many high street banks. In theory,
it is not that hard to change bank and
some people do so already (see story
below) but most consumers are put
off by the paperwork and worry that
money will get lost. Red tape includ-
ing anti-money laundering legislation
also makes it harder to switch.
Unfortunately, Ed Milibands other
views on banking reform are misguid-
ed. He wants to carve out yet another
1,000 branches from the existing Big
Four Barclays, HSBC, Lloyds Banking
Group and RBS and hand them over
to challenger banks to create a Big
Seven. Some of this is already happen-
ing, with Virgin snapping up
Northern Rock, and Co-op set to buy
branches from Lloyds. But there are
three problems with extending this
top-down approach any further.
Centrally planning competition
doesnt work. Why seven banks? Why
not nine, or 30? The truth is that the
supermarket industry is ultra compet-
itive even though people often only
have the choice of two or three stores.
The same holds in other industries.
Market structure is not the issue. The
key is to empower consumers to vote
with their feet and then allow the
structure of the market to adjust to
their free choices, in a bottom-up
fashion, rather than to try and plan
what it should look like.
Another problem with forcing more
version, any newly authorised bank
would be able to buy a licence to use
the system, removing the advantage
of the long established clearers.
Accounts could also be easily trans-
ferred from failed institutions to
sound ones during a crisis, reducing
the risk of a run.
This is the kind of policy the City
needs to adopt to rebuild itself along
pro-market lines. Banks should
embrace full account portability,
rather than the adulterated, ersatz
version proposed by the coalition.
Banks desperately need to improve
their reputations. Enforced relation-
ships never end well so treating con-
sumers like grown-ups by giving
them an easier exit strategy would
undoubtedly be a good first step.
branch disposals is that large num-
bers of customers would have to
change bank against their wishes, cre-
ating chaos and inconvenience. Last
but not least, it is complicated and
costly to carve out branches from an
existing bank. The current amputa-
tions are taking years to execute, with
vast numbers of consultants involved.
It would be better to spend the money
bank account portability would be
expensive on building a new ultra-
modern clearing system. It would
hold all accounts with an identifying
code to establish which bank holds
the account, allowing near instanta-
neous switching.
Intriguingly, this is one issue where
Labour and the Free Enterprise Group
of Tory MPs are now allies. The group
issued a pamphlet advocating full
bank account portability last year,
penned by Andrea Leadsom. In her
when Mervyn King steps down in the
autumn. His chances of winning the
top job may now depend on the qual-
ity of the evidence he presents today.
Further committee hearings are
expected to be arranged before the
parliamentary recess, with Barclays
chairman Marcus Agius due to make
an appearance tomorrow.
Meanwhile Deutsche Bank declined
to comment on reports that two of its
traders have been suspended after it
used external auditors to examine
whether staff were involved in manip-
ulating interbank lending rates.
n What was said during the call he had
with Bob Diamond in October 2008?
n Did he act on concerns raised about
Libor at a 2007 meeting of the Banks
Sterling Money Markets Liaison Group?
n Was he aware that Libor-fixing was
taking place at other banks?
n Did he turn a blind eye to Libor abuse?
n Was Sir Jeremy Heywood the Whitehall
official worried by Barclays Libor rate?
QUESTIONS FOR TUCKER
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
Private equity house Permira is con-
sidering a refinancing of frozen food
firm Birds Eye, which would land the
firm a 500m (397m) windfall.
Under the terms of the refinancing,
the level of Birds Eyes debt would
expand to almost 2bn from 1.4bn.
Permira, which bought the UK-
based frozen food producer from
Unilever for 1.6bn in 2006, is under-
stood to be considering the refinanc-
ing in order to return value to
shareholders.
A source told City A.M. that Birds
Eyes strong growth throughout the
past few years, helped by strong per-
formance of subsidiary Findus Italy,
which it bought from consumer giant
Unilever in 2010 for 800m, meant
that refinancing the business could
return some of that value to investors
in the form of a dividend.
Total net sales at Iglo Group, the par-
ent company of Birds Eye, grew 1.4 per
cent to 1.5bn for the year ended 31
December 2011. Two of Permiras part-
Permira plans
400m Birds
Eye refinancing
BY JANE HAMMOND ners Cheryl Potter and Maximilian
Biagosch sit on the Iglo board.
The source also said that the refi-
nancing would put a better capital
structure in place and allow Birds Eye
to back up its growth and innova-
tion strategy over the next three to
four years. The source added that the
acquisition of Findus Italy, the frozen
Italian food producer, had significant-
ly transformed the Birds Eye busi-
ness, and the money raised from the
refinancing could pave the way for
future consolidation in the market.
Permira put Birds Eye up for sale ear-
lier this year, but offers from rival pri-
vate equity houses BC Partners and
Blackstone were both rejected. It is
understood that Permira, whose port-
folio includes names such as high-
street chain New Look, Just
Retirement and Hugo Boss, was look-
ing for around 2.8bn, but offers fell
short at between 2.5 and 2.7bn.
Private equity house Permira owns
around 20 companies globally, with
around 35 per cent in the consumer
sector and 33 per cent in TMT.
Firms more cautious on profits
THE NUMBER of profit warnings
issued by UK businesses fell 18 per
cent in the second quarter of
2012, according to figures out
yesterday from Ernst and Young
but only because firms are more
cautious in their initial
predictions, not because profits
are improving.
Sixty warnings were issued in
the quarter, down from 73 in the
previous three months. But any
unexpected deepening of the
Eurozone crisis could push
warnings up again, the report
warned.
Part of the fall in warnings is
BY TIM WALLACE
undoubtedly due to a slight
improvement in trading
conditions, alongside hopes for an
Olympic boost, and, crucially,
falling input prices, said Ernst &
Youngs restructuring head Alan
Hudson. However, many
companies have also battened
down the hatches and cut costs to
meet targets, he added.
Though most FTSE sectors saw a
year-on-year drop in profit
warnings, the UKs construction
and materials companies were the
worst hit during the quarter as
seven firms issued alerts the
highest number since 2008.
The British high street has also
continued to feel the stretch, with
five profit warnings from firms in
the FTSEs general retailers list.
Though this number matched
the previous quarter it was down
from nine in the same period a
year ago, suggesting that pressure
on the consumer purse has begun
to ease.
Even if the UK economy moves
back into the black this summer,
the recovery still lacks the
traction it needs to build
sustainable momentum, said
Hudson.
There is only so much fat that
companies can trim and only so
long they can tread water with
little or no investment
investment that both they and the
UK economy desperately need.
Permira partner Cheryl Potter sits on the Iglo board
DEBENHAMS, Britains second
largest department store group,
revealed yesterday it is launching
its first foreign language website in
Germany as part of its ambitions to
expand overseas.
The retailer, which runs 164
stores in the UK and Ireland and
the Magasin du Nord chain in
Denmark, also plans to expand its
international delivery service to an
extra 34 countries, including
Argentina, Israel and Singapore,
taking the overall number of
BY KASMIRA JEFFORD
Debenhams launches website
in German to lure shoppers
MONDAY 9 JULY 2012
3
NEWS
cityam.com
countries to 41.
Simon Forster, online director at
Debenhams, said: With the second
largest e-commerce market in
Europe after the UK, Germany has
consistently been one of our top
performing countries online and
now German shoppers will benefit
from their own bespoke website.
The group last week posted
better-than-expected sales up 3.1
per cent in the 16 weeks to 23
June after events including the
Diamond Jubilee helped lure
shoppers through its doors. Online
sales jumped by 34.9 per cent.
RETAIL giant Marks & Spencer (M&S)
is expected to announce weak first-
quarter sales at its annual meeting
tomorrow, after clothing sales were
hit hard by the poor weather.
A consensus forecast of 12 analysts
compiled by the company predicts a
6.7 per cent drop in clothing and
homeware sales compared to the
same period last year.
This is expected to translate into a
three per cent drop in overall sales,
with 0.8 per cent sales growth in the
firms food division going some way
to make up for falls elsewhere.
Such results would represent the
worst quarterly figures in three
years.
Unfavourable weather has clearly
paid a part in the poor general mer-
chandise performance, although
with John Lewis continuing to post
growth and Debenhams reporting
strong UK trading, we think there is
an element of poor execution at
play, said Richard Cathcart, an ana-
lyst at Espirito Santo.
Investors will be keen to clarify the
future of executive Kate Bostock at
M&S expected
to reveal weak
non-food sales
BY JAMES WATERSON
the AGM, with M&S declining to deny
press reports that the head of non-
food products is set to leave the firm.
If Bostock leaves she will be follow-
ing M&Ss head of menswear, Richard
Price, who quit last month to become
managing director of Bhs depart-
ment stores.
Meanwhile chief executive Marc
Bolland will face questions over the
size of his pay deal after corporate
governance lobby group Pirc recom-
mended investors abstain from vot-
ing on the firms remuneration
report.
M&S has had a turbulent 2012, with
shares in the firm dropping by 18 per
cent since mid March.
M
ARKS & SPENCERs trading
update tomorrow is likely to
suggest that the high-street
stalwart has been
particularly weather-beaten in the
first quarter of the year.
Not only in the face of the
wettest spring on record which it
is expected to blame for a 6.7 per
cent decline in non-food sales but
also metaphorically speaking, with
an unnerving number of senior
staff blown elsewhere by the winds
of change.
Some analysts fear changes at
the top are beginning to trickle
down to its trading performance;
after all, a company needs a stable
management team to ensure
consistent results. But if its not the
changes in management chief
executive Marc Bolland has in the
past argued that staff turnover is
normal for a business of M&Ss size
then surely rain cant be the sole
cause of the retailers worst quarterly
trading in three years?
Finance director Alan Stewart has
done an admirable job reining in
costs and keeping 2011 profits in line
with forecasts. But growing sales is
always the best formula for success
and its here that Marks seems to be
struggling with its general
merchandise in particular
womens fashion.
At the companys full-year results
in April Bolland jumped from one
initiative to the next reassuring
that work was well underway to
modernise stores, grow market share
in clothing, revamp its homeware,
create a beauty department and
become a leading multi-channel
retailer while expanding abroad.
The retail sector never stands still
and Bolland is clearly not short of
ideas. But the key challenge he faces
now is to show that two years after
joining, he can turn those ideas into
consistent positive sales growth.
BOTTOM
LINE
KASMIRA JEFFORD
Marks and Spencer Group PLC
6Jul 2Jul 3Jul 4Jul 5Jul
322.5
325.0
317.5
320.0
327.5
330.0
332.5
335.0 p
318.00
6Jul
MONDAY 9 JULY 2012
4
NEWS
cityam.com
Marks & Spencer chief Marc Bolland is expected to address speculation of Kate Bostocks departure at the annual meeting tomorrow
Its not just any sales fall, its an M&S sales fall
HAMLEYS may be sold to French retail
group Groupe Ludendo, according to
reports yesterday.
Britains most famous toyshop is cur-
rently owned mainly by nationalised
Icelandic bank Landsbanki, famous for
running the Icesave
deposit programme that
defaulted in the financial
crisis of late 2008.
Landsbanki acquired
its stake from retail
investment group
Baugur in a debt-
for-equity swap after the investment
group went into administration in early
2009.
Baugur took control of 63.7 per cent
of Hamleys in 2003, in a bid worth
254p a share, valuing the company at
roughly 59m.
This was after a bidding war with rival
investor Tim Waterstone, who had
offered 230p but judged bids of around
254p a step too far.
Last year Landsbanki rejected a 60m
offer for the retailer from Bahraini
investment bank Global Banking
Corporation.
The second most important
stakeholder is Bracken, a pri-
vate equity firm run by
David Spotty Rowland,
the property develop-
er who left school at
16 and developed an
empire centred on a property empire
hundreds of millions of pounds.
Rowland, a tax exile living in Jersey,
has been a major donor to the Tory
party, giving close to 3m in the run up
to the 2010 election.
French may buy
iconic British toy
store Hamleys
BY BEN SOUTHWOOD
FOOTFALL on Britains high
streets fell by 5.5 per cent in
June, hitting hopes that an
increase in consumer spending
could boost the economic
recovery.
Research released today by
consumer monitoring firm
Springboard blamed rain
throughout the month, which
has continued into July and is
set to wipe out any potential
boost from the Queens Jubilee
celebrations.
This was supposed to be the
Great British summer but it
seems were abandoning our
towns because of the Great
British weather, said Diane
Werhle, research director at
Springboard. Were calling on
people to get out and about in
the UKs weather-proof historic
destinations.
Historic town centres
suffered the least, dropping 2.7
per cent on a year-on-year basis.
But coastal towns were hit
hard by the poor conditions,
with footfall down 4.4 per cent.
The government recently
awarded grants of 100,000
each to rejuvenate the high
streets of 12 towns, under the
guidance of retail consultant
Mary Portas.
High Street footfall drops as
weather hits retail recovery
BY JAMES WATERSON
MONDAY 9 JULY 2012
5
NEWS
cityam.com
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THE EMIR of Qatar may buy
Valentino from its private equity
owners, Sky News said yesterday.
The private equity firm Permira
currently owns Valentino, having
acquired the luxury Italian fashion
brand near the top of the market,
for 2.6bn (2.1bn). The deal could
see a loss of some 2bn on that
investment, as the price suggested
is between 550m and 600m.
The acquisition would see not
only the eponymous Valentino
label, but also Hugo Boss and
Missoni changing owners.
No spokesman from Permira was
available to make a comment.
Valentino to
go to Qatar
BY BEN SOUTHWOOD
TRAVEL company Stagecoach is eye-
ing a move into upmarket transport
through its budget bus brand
Megabus.
It has commissioned a 52ft double-
decker bus, designed to carry passen-
gers on inter-city journeys.
It is understood that the buses,
which will operate under the firms
Megabus brand, will have luxury
leather seats by day, and give way to
more than 40 fully-flat beds at night.
The buses will also include a hostess
service, where customers will be
served food and drink at their seat.
A prototype bus, which will be one
of the longest in the world, is current-
ly being tested in Scotland and costs
around 500,000.
Stagecoach will order an initial lot
of 10 buses, taking the investment in
the new premium product to 5m.
The service is expected to be fully-
operational by 2013, although it is
not known how many routes the
buses will be available on. Megabus
currently runs an inter-city service
across much of England, Scotland
and Wales.
Stagecoach to
launch luxury
sleeper buses
BY JANE HAMMOND
Stagecoach declined to say how
much the luxury service will cost, and
how it will compare in price terms to
first-class train travel.
There is already a similar Megabus
Gold service that operates between
Glasgow and Inverness and Glasgow
and Dundee, which offers an at-seat
food service. It has been running for
around 18 months and has been very
successful, according to Stagecoach
spokesman Steven Stewart.
As well as the Megabus brand,
Stagecoach Group, run by chief execu-
tive Sir Brian Souter, owns the Oxford
Tube, a coach service that runs
between London and Oxford, and the
Scottish Citylink brands, a provider of
express coach services in the country.
Serious Fraud Office reopening
probe into Weavering Capital
THE Serious Fraud Office (SFO) has
reopened its criminal investigation
into the collapse of Weavering
Capital in 2009 10 months after
dropping the original probe.
New director David Green called
for the U-turn after a high court
judge found Weavering Capitals
founder Magnus Peterson liable for
deceit and breach of his fiduciary
duties in a civil case in May.
Weavering Capital, one of
Londons oldest hedge funds, went
into administration in March 2009.
BY JENNY FORSYTH
Last September the SFO dropped
its investigation into the case, saying
it did not have a reasonable
prospect of conviction. However
liquidators of Weavering,
represented by law firm Jones Day,
successfully launched a civil case
against Peterson and other
Weavering staff.
The SFO announced its change of
heart on its company website, citing
the court judgment.
The company was advisor to a
Cayman Islands incorporated hedge
fund called Weavering Macro Fixed
Income Fund Ltd which had funds of
$639m [413m] under management
in 2008, said the SFO release. The
investigation concerns interest rate
swap transactions between the fund
and a related Weavering company in
the British Virgin Islands which had
the effect of inflating the net asset
value of the fund.
It is not the first volte-face for
Green, who took the helm at the SFO
in April. His predecessor, Richard
Alderman, backed out of a criminal
investigation of Libor manipulation
because of lack of resources but
Green secured an extra 3m of
Treasury funding to carry it out.
IN BRIEF
Praetorian Resources lists on Aim
n Natural resources investment company
Praetorian Resources today lists on Aim
with an initial market capitalisation of
24m. Established by Richard Lockwood
and Malcolm Burne, the geographically
unconstrained portfolio will invest in
equities and debt securities in the
precious and base metals, energy,
industrial minerals, soft commodities,
diamonds and other gemstones sectors.
Of the initial market cap, the company has
raised 10m through a placing, with 14m
from leading institutional investors.
France eyes changes to auto sector
n France will not let its auto industry
collapse and plans to unveil structural
measures to help the struggling sector
stay afloat, French finance minister Pierre
Moscovici said yesterday, as the threat of
closure looms over a major production
centre. Moscovici said a plan to save the
auto sector would be unveiled in the next
month, including job-saving solutions for
a Peugeot PSA factory near Paris.
Bombardier gets $1.02bn order
n Canadas Bombardier Aerospace said
yesterday a new customer, which has
requested to remain unidentified, has
placed a conditional order for five CS100
and 10 CS300 jetliners. Based on the list
prices of the aircraft, the contract is valued
at about US $1.02bn. Earlier it said it was
in talks with AirAsia about a more densely
packed 160-seat version of its CSeries jet
in a bid to compete with Airbus.
Sir Brian Souter founded Stagecoach in 1980 with two second-hand buses
Stagecoach Group PLC
6Jul 2Jul 3Jul 4Jul 5Jul
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6Jul
MONDAY 9 JULY 2012
6
NEWS
cityam.com
SPANISH and Greek banks have had
to borrow hundreds of billions of
euros from central banks to shore up
their balance sheets as depositors
have fled from the risky institutions,
a top economist has warned.
Banks borrowed an additional
81.1bn (64.3bn) from the
Eurosystem in June, an increase of
5.9 per cent. Over the same period
the Bank of Spain increased lending
by 62.3bn.
Assuming that system-wide loans
were unchanged between 31 May
and 1 June, Spanish banks accounted
for 77 per cent of the total lending
rise last month, said Simon Ward
from Henderson. The size of the
increase suggests funding was used
to finance the government as well as
cover deposit outflows.
That means banks have increased
borrowing from the Bank of Spain by
288.7bn since the end of November
2011, while its Target2 liabilities rose
by 271.2bn to 408.4bn. Meanwhile
figures from the Bank of Italy show
its loans at 8.5bn in June.
The Spanish and Italian figures
imply that lending to banks by other
Eurosystem members rose by only
about 10bn in June, said Ward.
This is a net result so could
conceal higher borrowing by Greek
banks; the suggestion, however, is
that Greek deposit outflows were
smaller than feared last month.
Euro banks
seek official
sector loans
BY TIM WALLACE
SPAIN is on the right path to over-
come recession and regain investor
confidence, and its public accounts
can handle the extra weight of
European aid designated for banks,
Germanys finance minister said in an
interview published yesterday.
Wolfgang Shaeuble praised the
Spanish governments tough steps to
stabilise public finances, and said the
state can cope with the extra burden
of taking on European debt to bail out
its troubled banks.
However, he would not be drawn on
the possibility of a banking union.
To talk of what will happen when
the future banking supervisor
is functioning is to build
castles in the sky. Right
now we must work with
what we have, he told
Spanish newspaper El
Pais.
The fundamental
figures and the
intention to
reduce the
deficit shows
Spain praised
for pushing on
with reforms
BY HARRY BANKS
that we should not exaggerate the cost
of the bailout on public accounts.
Spain is on the right path.
Spains government has applied for
up to 100bn (79.3bn) from the
Eurozone to recapitalise its weaker
banks, hit by a burst property bubble,
which would add around 10 percent-
age points to the countrys debt levels
if taken in full.
Madrid expects Spains debt ratio as
a percentage of gross domestic prod-
uct to be around 80 per cent, exclud-
ing the bank bailout, by the year-end,
in line with the European average.
But Schauble praised Spanish efforts
to bring down its borrowing and main-
tain access to debt markets.
Spain is doing a great deal to break
the vicious circle and strengthen mar-
ket confidence, he said.
Meanwhile Italian prime minister
Mario Monti hit out at opponents of
his labour market reforms, arguing
that complaints about government
policy undermine his efforts and
push up borrowing costs.
Schaeuble said Spain can
cope with the bank bailout
THE SWISS National Bank (SNB)
must defend the cap it has set on
the franc as the upward pressure
on the safe-haven currency is only
set to rise, the countrys economy
minister said in an interview
yesterday.
The latest data show the SNBs
foreign exchange reserves jumped
19 per cent in June as a flood of
cash into Switzerland forced the
Bank to sell francs to defend the
cap, set at SwFr1.20 to the euro
last September.
The pressure on the SNB will
increase. That is why it is all the
Pressure set to rise on franc as
capital escapes single currency
BY CITY A.M. REPORTER
more important to defend this
minimum exchange rate without
compromise, Johann Schneider-
Ammann told SonntagsZeitung.
The minister confirmed the
government has contingency plans
in case of the horror story of a
Eurozone collapse, but added that
he does not expect that to happen
as Europe could not afford to let
the single currency break apart.
However, he said capital
controls would not be among any
tools used, including imposing
negative interest rates on
foreigners Swiss franc deposits in
Swiss bank accounts, pointing to
the failure of previous such moves.
MONDAY 9 JULY 2012
8
NEWS
cityam.com
Swiss economics minister Johann Schneider-Ammann said the cap on the franc must be kept
BRITISH defence giant BAE Systems
said yesterday that it is the fron-
trunner in the race to win a $11bn
(7.1bn) to provide trainer jets to
the United States Air Force (USAF).
The USAF has a requirement to
replace their aging training air-
craft and we believe Hawk, as
worlds most successful and afford-
able jet trainer, is best placed to
meet their needs, a spokesman for
the company told City A.M.
Although the contract would ben-
efit British-based staff it is under-
stood that political constraints
mean that the majority of manu-
facturing work would be undertak-
en in the US.
The firm is confident that it can
face down opposition from
American rival Lockheed Martin to
provide 350 trainer aircraft, in part
because the USAF is seeking a tried-
and-tested replacement for its age-
ing fleet of T-38 airplanes. Over 900
Hawks have been sold since the
model first entered services with
the in 1976.
The USAF is expected to make a
decision by 2014, with the first air-
craft due for delivery in 2020.
BAE is facing a difficult period as
domestic defence cuts bite and it
becomes increasingly reliant on
overseas orders. It appears to have
BAE in the lead
for 7bn US Air
Force jet deal
BY JAMES WATERSON
missed out on a 7bn contract to
provide fight jets to India but is
hoping to conclude a $2bn deal
with Oman for 12 Typhoon aircraft.
In late May the firm sealed a
1.6bn deal to supply Saudi Arabia
with Hawk jets, including 22 new
Hawk advanced jet trainer aircraft,
which will be made in UK, and 55
Swiss made Pilatus turboprop air-
craft as well as training equipment
and other support services.
Meanwhile yesterdays Sunday
Times reported that the firm is
planning to close Glasgows historic
Govan shipyard and its Portsmouth
dockyard after a drop in naval
orders.
We continue to work closely with
the Ministry of Defence to explore
all possible options to determine
how best to sustain the capability to
deliver complex warships in the UK
in the future, the firm said in
response.
Regulators dominate top list of
Europes finance power players
EUROPEAN Central Bank (ECB)
president Mario Draghi has been
ranked as the most important figure
in European financial markets for a
second year running, according to a
list published today.
The table of the 100 most
influential people in European
financial markets, released today by
Financial News, comes as Eurozone
leaders put plans in place to give the
ECB supervisory powers over its
biggest banks, adding to Draghis
responsibilities.
BY KASMIRA JEFFORD
He leads a quartet of regulators to
make it into the top 10 including
Stefan Ingves, the chairman of the
Basel Committee on Banking
Supervision; Mervyn King, the Bank
of England governor who is
preparing for its new role overseeing
UK financial institutions; and Michel
Barnier, European commissioner for
internal markets and services under
whose watch a slew of new rules has
come into effect.
For the first time since the survey
was first published in 2005, a
woman has broken into the male-
dominated list of top 10 influential
people. Elizabeth Corley, chief
executive of Allianz Global Investors
is ranked in sixth place, largely for
the part she has played as a leading
spokesperson for the asset
management industry. Overall, the
number of women on the FN100 has
edged up to seven from the average
in previous years of five.
Daniel Pinto, JP Morgans head of
Europe the Middle East and Africa is
the highest placed banker, in fourth
place, followed by Goldman Sachs
co-chief executives Richard Gnodde
and Michael Sherwood in fifth and
eighth places respectively.
Elizabeth Corley is chief executive of Allianz Global Investors
BAE Systems PLC
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MONDAY 9 JULY 2012
9
NEWS
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HUNGRY investors in search of an
investment in a falafel wrap may find
solace in fast-food chain Leons new
retail bond. Nicknamed the Leon
bond, the three-year fixed-term cor-
porate bond pays an annual coupon
of between 10 to 15 per cent in eon
Pounds, depending on the amount
invested, which can be redeemed at
the restaurants chains. Investors
need to subscribe for a minimum of
1,500.
The chain, with six branches in the
City, hopes to raise 1.5m from the
bond issue, which will support the
chains expansion as well as setting
up the not-for-profit Leon founda-
tion, whose first initiative is to set up
a cookery school for young renal ill-
ness sufferers. Leon is giving away
1,000 in eon Pounds at one of its
restaurants nationwide each
Thursday until applications for the
bond close on 31 July.
Leon is not the first SME to turn to
its customers for funding. Hotel
Chocolat raised 3.7m through its
retail bond in 2010, offering a gross
annual return of 6.72 per cent for a
2,000 investment, payable in choco-
late. And online travel group Mr &
Mrs Smith sought 5m from a retail
bond paying 7.5 per cent, or 9.5 per
cent in loyalty money.
Henry Dimbleby, co-founder of
Leon, said consumers are keen to
invest in favourite brands rather than
banks. It remains to be seen how
many will put their money where
their mouth is.
Henry Dimbleby & John Vincent co-founded Leon in 2004
BUSINESS HAS SUFFERED A SERIOUS BLOW.
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Got A Story? Email
thecapitalist@cityam.com
10
cityam.com
cityam.com/the-capitalist
THECAPITALIST
MONDAY 9 JULY 2012
Brought to you by
IN ASSOCIATION with Repskan.com,
City A.M. is measuring the relative Olympic
media buzz around the London 2012
Olympic and Paralympic Games partners,
week by week. The leaderboard, right,
reflects their ranking over the past week, in
this case from Wednesday 27 June to
Wednesday 4 July.
Coca-Cola has maintained its high position
in the rankings, and has recently launched
its largest Olympic-themed marketing effort
in its 84-year history of supporting the
Games. But along with McDonalds, Coca-
Cola has also received attention for less
positive reasons. The International Olympic
Committee has come under pressure from
the London Assembly to ban sponsors that
produce high calorie food and drinks.
OLYMPIC MEDIA BUZZ
LONDON 2012 PARTNERS
Brand Position change
McDonalds -
Samsung 2
Coca-Cola 1
Visa -3
Adidas -
BP 4
British Airways -1
Lloyds TSB 3
BMW -1
BT -1
TOP TEN PARTNERS BY MENTIONS
%
10
62
10
1

4
13
Blogs
Regionals
National News
Topicals
Twitter
Other
COCA-COLA
MENTIONS BY
CATEGORY
ANYONE making an unwelcome
weekend trip into the office
yesterday will have been greeted by
busier-than-usual City streets, as more
than 25,000 runners took to the
pavements around London for the
annual British 10k.
Among those braving the rain to jog
the iconic route past landmarks
including Big Ben, St Pauls Cathedral
and even the City A.M. offices was a
57-strong team raising money on
behalf of the London Legal Support
Trust, which provides funding to
support law centres and legal advice
agencies across London and the South
East.
Leon banking
on appetite of
hungry savers
THE EUROZONE crisis has battered
British business confidence again,
influential surveys from both
Deloitte and BDO show today, leav-
ing firms unwilling to borrow and
invest, and too uncertain to boost
hiring.
Deloittes survey of chief finance
officers (CFOs) shows its third major
dip in confidence in the last five
years, and its sharpest decline since
2007.
Ninety-five per cent of CFOs rated
current financial and economic
uncertainties as above normal in
the second quarter, with a major neg-
ative impact on spending plans.
A net balance of 32 per cent expect
hiring spending to fall, 34 per cent
see capital expenditure falling, and a
balance of 67 per cent predict a fall
in discretionary spending.
After a rally in the first quarter,
CFOs now see an almost 50 per cent
chance of the recession continuing
UK confidence
devastated by
Eurozone crisis
BY TIM WALLACE
until the end of the year, or for the
economy to hit a triple dip reces-
sion in the next two years.
Economic uncertainty remains
the big constraint on corporate
expansion, said Deloitte chief econ-
omist Ian Stewart.
Uncertainty has had a corrosive
effect on risk appetite and 80 per
cent of CFOs say this is not a good
time to take risk onto their balance
sheets.
Meanwhile BDOs business trends
report reveals confidence fell to its
lowest point of the year so far in
June, with the manufacturing sector
taking a particularly hard knock.
The optimism index, which pre-
dicts business performance two
quarters ahead, fell for the fourth
consecutive month to 93.5 in June,
from 95.5 in May below the key 95
level that indicates growth.
The manufacturing sector led the
fall with a drop from 96.5 in May to
83.8 in June the lowest reading
since March 2009.
THE UK must cut red tape for
small businesses to help transform
the UKs economy, a group of Tory
MPs will say in a paper released
today.
Seven MPs have voiced a raft of
ideas on how Britain can get its
economy back on track including
fairer taxes, a reduced regulatory
burden, and the creation of a
dedicated Ministry of
Infrastructure.
The so-called Free Enterprise
Group suggests that micro
businesses those with three or
Tory MP group calls for cuts to
red tape and tax to help growth
BY BEN SOUTHWOOD
fewer employees and less than
75,000 annual turnover should
be exempt from employment
regulation.
They also call for the Treasury
to focus more on the supply-side,
implying that lower taxes might
be supported.
Member Kwasi Kwarteng MP
said: We need to take bold
decisions to create jobs and
growth and restore credibility to
the UKs financial sector. Its time
for the government to stop
hindering businesses and to
create the space to allow
entrepreneurs to thrive.
12
GLOBAL ECONOMICS
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Bankers and graduates hit with
crashing wages and less hiring
WORKERS are taking a hammering
as appointments collapse and
wages stagnate, according to
recruitment industry research
published today.
Permanent placements slumped
in June the first fall in six months
and the quickest drop for three
years, the Recruitment and
Employment Confederation (REC)
and KPMG report on jobs showed.
The index crashed from 51 in
May, to 46.8 in June. A score of 50
indicates no change.
The real worry is that the
acceleration in the pace of decline
suggests this isnt a mere blip, said
BY BEN SOUTHWOOD
Bernard Brown, head of business
services at KPMG, after temporary
staff billings fell for the seventh
month running, accelerating to the
fastest pace of contraction since
mid 2009.
Chief executive of REC Kevin
Green said: A decrease in hiring
activity means we could see a
period of increased unemployment,
especially as a new wave of school
leavers and graduates enter the
labour market over the summer.
Separate research published by
the Association of Professional
Staffing Companies showed
graduate salaries were down 20.5
per cent on last year, while banking
and insurance performed
consistently poorly across nearly all
regions and job types.
Although the results show
permanent placements rising 17 per
cent in June compared to May, the
level of placements was still down
strongly on the year.
The latest data are an
improvement on the bad news from
early spring, but its not clear that
this is the beginning of a long-term
positive trend, said chief executive
Ann Swain.
Its not been a good time to be a
banker recently, and fears about
new regulation, whether from
Europe or the UK, in the wake of
the recent scandals could put a
dampener on recruitment.
EUROPES listed firms are sitting
on 110bn, a new study reveals
today, but are afraid to spend it in
the uncertain economic
environment.
German firms hold the most,
with liquid assets and cash
totalling 25.88bn an average of
195m for each of the 133 firms
covered in the study from
Company Watch.
British hoards came in next
with a total of 18.92bn, or 90m
for each of the 211 firms,
followed by 61 Swiss firms that
are sitting on a total of 14.6bn,
averaging 239m.
Despite the countries problems
overall, large listed Spanish firms
Companies hoard cash against
growing market uncertainty
BY TIM WALLACE
hold an average of 285m in cash,
and Italian firms 143m.
All European economies are
affected to some degree by the
Eurozone crisis and it looks as if
the headlong growth of the BRIC
economies is faltering, so its
hardly surprising that the bosses
of our largest businesses view
debt as dangerous and cash as
comforting, said Nick Hood from
Company Watch.
Investors in these public
companies have a clear choice
between companies which have to
rely on a risk-averse banking
sector with limited liquidity and
their better endowed brethren,
who hold plenty of cash, but
arent currently willing to risk
too much of it on expansion.
INVESTORS have been pulling
hundreds of millions of dollars out
of stock funds that invest mainly in
companies associated with the big
four emerging market nations of
Brazil, Russia, India and China.
But its China that is causing most
of the worry for investors, amid signs
that the worlds second-largest
economy is slowing more sharply
than expected.
Even emerging market bull Jim
ONeill, chairman of Goldman Sachs
Asset Management, who coined the
BRIC acronym, said hes been a bit
surprised by the slowdown in China.
But ONeill remains convinced
Chinas economy will be more than
enough to make-up for any weakness
in the other BRIC nations.
It is making the trajectory that I
predicted difficult to stick with,
ONeill said about the slowdown. But
he added, I find it hilarious that
people question the thesis on the
basis of two quarters.
The second-quarter was not kind
to so-called BRIC-focused stock funds,
with investors redeeming $787m
(508m) during the period,
according to fund tracking firm
EPFR. Chinese-focused funds were hit
particularly hard, with investor
redemptions totalling 88 per cent of
the $1.6bn in new money those
funds took in during the first
quarter.
BRIC troubles
scare markets
BY CITY A.M. REPORTER
MONDAY 9 JULY 2012
13
GLOBAL ECONOMICS
cityam.com
Global outlook takes a hit as
Germany joins worsening slump
GLOBAL business confidence slumped
last month, led by declines across
much of the Eurozone, according to
data published today by Markit.
A net balance of 37 per cent of
firms expect activity to increase in
the next year, indicating slower
expansion than the 44 per cent
recorded in February.
That slowdown also extended to
the jobs market, with a net
balance of 17 per cent expecting to
take on more staff in the next 12
months, down from 19 per cent in
February, with manufacturers
BY TIM WALLACE
leading the decline.
Confidence fell sharply in
Germany, where a net balance of just
16 per cent expect to expand in the
year, down from 37 per cent four
months ago. Italy and Spain all
recorded similarly low optimism
figures, leading to negative
employment expectations a net
balance of 10 per cent of Italian
firms and 16 per cent in Spain
expect to cut headcount.
Business confidence also slumped
in the UK and US, though net
balances of 38 and 57 per cent
remain above those in the Eurozone.
Meanwhile optimism slowed in
China and Brazil and dropped
sharply in Russia, dragging down
capital expenditure expectations in
all three. However, India stood out
among the BRIC nations with rising
employment intentions.
The recent deterioration of
business optimism and employment
intentions is clearly centred on the
Eurozone and Germany in
particular, where confidence has
fallen to levels similar to the
downbeat moods evident in France,
Spain and Italy, said Markits Chris
Williamson.
However, the survey provided
some hope, because global business
optimism remained higher than the
post-crisis low seen late last year.
FRAUD dropped massively in the
first half of this year but
worryingly is mainly perpetrated
by management, says research
released today by KPMG.
Fraud figures fell from 1.1bn
during the six months to June 2011
to just 374m in the same period
this year the lowest since the
second half of 2006. Though this
came from an increased number of
prosecuted cases, up from 131 last
year to 136, there were a smaller
number of major cases.
Most cases tend to come from
within organisations, according to
the study, with 55 per cent of the
total perpetrated by management.
Employees, on the other hand
accounted for under six per cent.
Fraud total down but computer
crime is the new battleground
BY BEN SOUTHWOOD
One key difference this year has
been the absence of so-called
missing trader VAT fraud after a
government campaign no crimes
of this type were prosecuted in the
first half of 2012.
KPMG fears that streamlining
operations in a tough economic
environment may lead to less
oversight of managers, giving them
more leeway to engage in
fraudulent activity. But this
oversight may not always give the
results intended one notable case
is that of the counter-fraud head at
a bank who pocketed 2.4m in
procurement scams.
Cyber-crime has emerged as a
new battleground in fraud one
case involved the sale of over
340,000 individuals details, and
losses to businesses of some 27m.
% net balance
Business Optimism,
50+
25 to 50
below 25
Top European rms are sitting on huge cash piles -
but are unwilling to invest in the crisis
18.9bn
25.9bn
Germany
UK
Switzerland
Italy
3.4b
14.6bn
France
11.1bn
Big rms' nancial prospects dropped sharply in Q2
Q4 Q3
2007 2008
Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2
-70%
-50%
-30%
-10%
10%
30%
50%
70%
2009 2010 2011 2012
NetbalanceofCFOswho
aremoreoptimisticthan
threemonthsago
Staf Appointments fell in June
1998 2002 2006 2012
35
40
45
25
30
50
55
60
65
70 50=nochangeonpreviousmonth
Permanent
Placements
Temp/ContractBillings
Global business optimism fell in June as the debt crisis across the Eurozone continued
SOURCES: MARKIT, KPMG/REC, DELOITTE, COMPANY WATCH
14
MONDAY 9 JULY 2012
cityam.com
Capita Insurance Services
The specialist provider of Lloyds
services has appointed John
Holm as commercial director. He
joins after five years at National
Australia Bank, where he was
insurance sector head and
director of corporate banking for
its Clydesdale Bank business.
Holm previously held a number
of senior roles at RBS, notably as director of origination for
the insurance sector.
Wainbridge
Jonathan Hardie has been appointed head of asset
management in the London team of the property
investment firm. He has over 25 years experience in asset
management, and has previously held positions at
Westbrook Partners, Haslemere Estates and MEPC.
Alliance Medical
The healthcare diagnostic services provider has appointed
Nick Burley as group chief financial officer. He joins from
Tianhe Chemicals Group, a Chinese chemicals firm, where
he served as chief financial officer. Burley has also served in
the same role for The Vita Group and McCormick.
Katten Muchin Rosenman
The full service law firm has announced a triple hire into its
London real estate team. Stephen John and Ranjeev Kumar
join from the London office of Fried Frank, and will serve as
special counsel and partner respectively. Joe Payne will also
arrive as a partner from Field Fisher Waterhouse. Their
appointments follow the recent hire of Peter Sugden as the
law firms London managing partner.
Fox Williams
The law firm has appointed two partners to its financial and
regulatory practices. James Carlton joins from Russell Jones
& Walkers business crime and regulatory investigations
group. Richard Honeybourne joins from Addleshaw
Goddard. He is a funds specialist and acts on complex
headline transactions.
OneSavings Bank
The mutual bank has announced that Rodney Duke is
joining its board as a non-executive director. He will also
chair its risk committee. Duke is an experienced FTSE 100
non-executive director, and worked previously as group
general manager at HSBC. He was also on the board of
Alliance & Leicester.
Otkritie Capital
The investment arm of the Russian financial group has
appointed Pavel Dubovets as sales director for its
derivatives team. He joins from Troika Dialog, where he has
worked in equity sales for the past 11 years. Dubovets has
also held senior roles at Surgutneftegaz, the gas firm.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
Bank deputy
and M&S take
centre stage
A
LL eyes will be focused on the
Treasury Select Committee
hearing today, as deputy Bank
of England governor Paul
Tucker presents his side of the story
in the Barclays/ Libor scandal.
His appearance will be followed
tomorrow by one from Marcus Agius,
the former Barclays chairman.
Today sees trading updates from
housebuilder Bovis expected to be
positive and recruitment group
Michael Page.
Companies updating the market
tomorrow include ASOS and
Interserve, while Big Yellow Group,
Intermediate Capital Group, Young &
Cos Brewery, Blackberry maker RIM
and retail giant Marks and Spencer
are all holding annual general meet-
ings.
Hundreds of Marks and Spencers
shareholders are likely to turn up for
the ubiquitous free sandwich. But they
are likely to also come away with bad
news from chief executive Marc
Bolland, with analysts predicting a fall
in trading of general merchandise,
including clothing.
In economic news, the Office for
National Statistics (ONS) is expected to
announce a marginal increase or
decrease in Mays industrial produc-
tion and manufacturing output as the
market remains stagnant.
Wednesday will see trading updates
from Barratt Developments,
Bloomsbury Publishing, JD
Wetherspoon and luxury retailer
Burberry.
Meanwhile BT Group, FlyBe, ICAP,
UK Mail Group and supermarket J
Sainsbury will hold their annual
meetings.
On Thursday, retailer SuperGroup is
set to give full-year results, with
investors keen to see if it can maintain
the massive growth it had as a private
company. Since floating, it has been
plagued by problems including arith-
metical errors in its profit and loss
forecasts which resulted in a profit
warning.
Trading updates are due from
Associated British Foods, Centaur
Media and Premier Oil.
Meanwhile, in economic news the
Office of Budget Responsibility (OBR) is
set to publish its report on fiscal sus-
tainability. The report is expected to
contain the OBRs long-term view of
the UKs public finances, including tax
and spending pressures.
On Friday bothDell and British Land
are due to hold their AGMS.
W
ALL Street has been running in
circles for the past two months,
and the pattern may continue
despite the upcoming start of the
earnings season.
Quarterly report cards from blue-chips
Alcoa and JPMorgan this week could fade
into the background as traders jockey for
position before key data from China and
more central bank headlines.
After three major central banks eased
monetary policy last week, investors will
comb through the minutes of the latest
Federal Reserve policy meeting, which will
be released on Wednesday, to see what offi-
cials said about a further round of asset
purchases.
US stocks face headwinds from a slowing
global economy. Europes debt crisis has
drawn much of the attention, but little
clarity has emerged about how the
Eurozones debt and banking problems
will be fixed despite numerous meetings.
The uncertainty has left the market in
the hands of traders, who look for opportu-
nities for quick returns, while investors,
who are in the market for the long haul,
watch from the sidelines.
The S&P 500 flirted with going negative
for the year shortly before posting its best
week since December. The benchmark
index is less than 0.1 per cent above where
it was two months ago.
Traders are happy going in and out of
the market within a range, but for the aver-
age investor its a market in which the
path is still unclear, said Quincy Krosby,
market strategist at Prudential Financial in
Newark, New Jersey.
On Friday, the S&P 500 closed down 0.55
per cent for the week. The index has posted
four weeks of gains and four of losses in
the last eight.
Weak US labour market data on Friday
raised the chances in favour of the Fed
launching a new round of monetary stim-
ulus to boost growth, according to a
Reuters poll.
The Feds minutes midweek will be fol-
lowed Thursday by the Japanese central
banks views on the health of its economy
after a two-day meeting.
If we do see additional asset purchases
from the Bank of Japan that would depreci-
ate the yen and would be a short-term pos-
itive for global equities, said Brian
Jacobsen, chief portfolio strategist at Wells
Fargo Funds Management in Menomonee
Falls, Wisconsin.
The recent central bank actions are seen
as precautionary moves as the global econ-
omy stalls. This weeks gross domestic
product data out of China will help give
the market important clues about the
worlds second-biggest economy.
Some of the negative news is built in,
and Im anticipating a positive surprise
coming out of China, Jacobsen said.
Economists expect China to report year-
on-year GDP growth of 7.6 per cent, com-
pared to an 8.1 per cent yearly gain in the
first quarter.
Other Chinese data next week include
inflation, loan growth, trade balance and
retail sales.
Europe remains on traders minds
despite an agreement last week that opens
the door for troubled banks to receive res-
cue funds. However, Italian and Spanish
borrowing costs have resumed their rise in
a bearish sign for markets.
Testimony by ECB President Mario
Draghi to Europes parliament today will
be followed by a meeting of Eurozone
finance ministers.
Aluminum company Alcoa reports sec-
ond-quarter results today. Alcoa surprised
Wall Street last quarter with a positive out-
look, but the global slowdown could make
it harder for the aluminum maker to keep
its bullish stance.
JPMorgan Chase & Co will also report
earnings this week, with investors eager to
know how big the banks losses will be fol-
lowing a botched trade. The initial estimat-
ed loss at the bank was $2bn but later
reports indicated it could balloon to more
than four times that.
The idea is that analysts have been
marking down not only earnings estimates
but revenue estimates, and the reason is
because of weakness in Europe, which is
spilling over to weakness in global opera-
tions for many companies, said Brian
Gendreau, market strategist with Cetera
Financial Group in Gainesville, Florida.
Alcoa and JPMorgan start earnings
season as traders await more data
BESTof theBROKERS
ICAP PLC
2Jul 3Jul 4Jul 5Jul 6Jul
p 345
320
315
325
330
335
340
313.60
6 Jul
ICAP
Numis has downgraded the interdealer broker from buy to hold and
lowered its target price from 412p to 344p after a fall in electronic
volumes over June and potential knock-on effects of the ongoing Libor
scandal. The broker has downgraded its forecasts by four per cent for
this year and five per cent next year, and continues to see negative
revenue pressure from regulation for several years.
FTSE
5,700
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5,675
2Jul 3Jul 4Jul 5Jul 6Jul
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6 Jul
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6 Jul
CARILLION
UBS has downgraded the support services and construction firm from
neutral to sell with a target price of 230p , seeing low growth potential
in its support services division and even possible revenue decline in 2013.
The broker says unsustainable construction margins and low cash conversion
will also weigh on the stock. However, UBS does see a possible upside to its
new rating if contracts materialise in the second half.
Marshalls PLC
2Jul 3Jul 4Jul 5Jul 6Jul
p 90
82
80
78
84
86
88
80.00
6 Jul
p
MARSHALLS
Panmure Gordon has downgraded its recommendation on the
landscape, driveway and garden products retailer from buy to hold
following a trading update, which saw the business impacted by bad
weather from April to June. Though the broker sees much to be positive
about at the group in terms of groundwork, Panmure says it is hard to
see a share price catalyst in the short term.
THE WEEK AHEAD
assets posted as collateral by clients.
The second is the failure of UK regula-
tion and its impact on the Citys repu-
tation as a safe place to do business.
Re-hypothecation usually involves a
right of brokers to transfer assets held
in custody. They can use collateral to
back their own trades and borrowing.
This is largely a UK practice. In
Canada, re-hypothecation is banned.
In the US, client protection rules exist
alongside a cap of 140 per cent on the
amount a clients balance can be re-
hypothecated. In the UK, there is no
limit unless specifically negotiated.
This links us back to UK regulation.
Among the edicts of the Financial
Services Authority (FSA) is the
Conduct of Business Sourcebook,
which explains how institutions
O
UR SUCCESS as a global
financial centre depends
on trust. Recent events
have shaken that trust,
and we must restore it. It is
the responsibility of us all to make
the case for the importance of the
City to both the British economy
and to other economies abroad,
both now and in the future. It is
vital in creating jobs and growth.
The services we provide are our
livelihoods, but they also help to
create and support the livelihoods
of our fellow citizens, up and down
the country.
But the City must be trusted if it
is to help create jobs and growth. If
it is not, our ability to serve the
L
ESSONS have been learned is
todays platitude of choice. It
was used to account for the
failings that led to the collapse
of Lehman Brothers an event
that was meant to change everything.
So it was with disbelief that I heard
from a group of MF Global clients.
MF Global was a derivatives broker
that filed for bankruptcy last October.
It bet $6.3bn on the bonds of Europes
most indebted nations, contributing
to an internal liquidity crisis. Before
bankruptcy, it seemed to dip into seg-
regated US customer funds to cover
margin calls through MFGUK, its UK
operation. The UK was a convenient
cover for such trades compared to the
US, where the reuse of client collater-
al on this scale is forbidden.
Regulators from other jurisdictions
acted quickly to get client money
back. Canadians had their funds fully
returned, Singaporeans got 90 per
cent and US clients 72 per cent. In the
UK the figure is just 26 per cent.
The case highlights two shortcom-
ings in British finance. The first is re-
hypothecation, a process whereby
brokers use, for their own purposes,
FLIGHTS STRAIGHT F
FROM 63
ONE
WAY*

*Fare available from London City Airport to Dublin. Price valid as of 19 June. Subject to terms, conditions and availability.
cityam.com/forum
The FSAs bungled
handling of the MFGUK
case shows its inability
to fulfil its duties
In association with
THEFORUM
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Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

16
MONDAY 9 JULY 2012
MARK FIELD
MF Globals bankruptcy highlights
perilous faults in UK finance rules
should classify clients as retail, pro-
fessional or eligible counterparty.
Retail funds are held in segregated
accounts. But the money of profes-
sional or eligible counterparty clients
can be lent to the broker when the
client agrees to a title transfer. Clients
have little control over their classifica-
tion and can be pressured to agree to
a title transfer structure to obtain
financing with huge implications if
the broker goes bust. Non-retail
clients are unsecured creditors and
are left far down the pecking order
come bankruptcy.
This is the hapless fate of most
MFGUK clients, who thought that
client money was client money.
They are now jostling with others for
a share of the property. It will be a
long and expensive process.
It didnt need to be this way. The FSA
put MFGUK into special administra-
tion when it was technically solvent,
with sufficient resources to give regu-
lators scope for a less disruptive strat-
egy to clients and counterparties.
But theres more at stake than the
return of client funds. Brokers have
exploited UK regulation to transfer an
unknown amount of client funds to
the UK to be re-hypothecated many
times. This could compromise the sta-
bility of the entire UK financial sys-
tem. While money does come into the
UK, clients and taxpayers potentially
bear all the cost and none of the bene-
fit in the event of systemic failure.
There is a second shotcoming in
British finance. The speed at which
clients money is returned on bank-
ruptcy is a litmus test of the attrac-
tiveness of the City. Clients will have
realised that their money may not be
as safe as assumed, and re-hypotheca-
tion also makes sorting out who gets
what from an estate very messy.
When the Citys competitor jurisdic-
tions return funds quickly, it will be
no surprise if investors turn away
from us. The FSAs remit is to protect
clients and maintain confidence in
our financial system. Its bungled han-
dling of the MFGUK administration
highlights the FSAs inability to fulfil
its duties. To shore up Londons repu-
tation before confidence drains away,
the MFGUK case needs immediate
attention from the wider UK financial
establishment.
We must examine re-hypothecation.
The ability to manipulate collateral is
a good way to promote liquidity. But
this benefit must be balanced against
the cost of investors overlooking the
UK, and any taxpayer burden if there
is systemic failure. We must dispense
with re-hypothecation or limit the
percentage of client funds that can be
used for this purpose.
The FSAs awareness of client segre-
gation problems after Lehmans
debunks the myth that lessons have
been learned. This latest episode of
regulatory incompetence risks dam-
aging Londons international compet-
itiveness as a financial centre.
Mark Field is Conservative MP for the
Cities of London and Westminster.
wider economy will be restricted by
overly burdensome regulation and
law. My concern is that the way in
which the current debate is being
conducted omits the central
importance of the City to the wider
economy and also the fact that only
a tiny number of people have not
met the standards the City and the
wider community expect of them.
Over 300,000 people work in the
City, and nearly all of us go about
our work with the right values and
the right ethos. We deserve the
trust our clients put in us. We must
also convince others that we are to
be trusted.
On Wednesday, when I entertain
Her Majestys Judges to dinner at
the Mansion House, I will as Lord
Mayor and as a lawyer reaffirm
the importance we attach to the
rule of law.
This is not a legal abstraction. It
is about having the right
regulations and the right laws in
place, but it is about those who are
governed by regulation and law to
following them because they know
them to be right. They should be
followed by choice, not by necessity.
It is no coincidence that
international business bases itself
in London: English law and British
politics provide the stability,
predictability and clarity that it
needs and because international
business knows that we go about
business in the right way. Our
commitment to the rule of law is
valued right across the world.
There is no doubt that the
reputation of London as a global
financial centre has been damaged
by the minority involved in the
Libor scandal. That is why we need
to stress the importance of
upholding the highest standards of
ethics when it comes to dealing
with clients, shareholders and the
public. Only then can the City prove
that we are once again worthy of
the publics trust.
We should be firm with those
who have let others including the
rest of the City down and we must
be seen to be firm. But we must also
make it clear that we live the right
values in our work and are worthy
of the trust of our clients,
shareholders and country. These are
the standards that have made
London the worlds pre-eminent
global financial centre.
David Wootton is Lord Mayor of the
City of London.
CITY
MATTERS
DAVID WOOTTON
Trust in the City is central to its ability to create jobs and foster growth
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17
Cheapened money
[Re: Why QE is not the answer to Britains
economic problems, Friday]
Quantitative easing is a disaster. Milton
Friedman wouldnt have supported this
further injection if he were still alive, and
hed be right as he was about most things.
He predicted the euro would have about a
10 year lifespan. It seems he was pretty spot
on about that too. Though I dont blame the
euro so much as its poor management, as
governments have pandered to the whims
of their citizens.
SteveOkare
This article is correct. Debasing our currency
will inevitably result in long-term damage to
our economy.
HughHarris
Financial pain
QE is like financial morphine. Imagine a
patient post-operation: there is only so much
morphine the body can take to dull the pain.
If you have too much, it can harm or even kill
you. It will only last for a while, and then you
just have to get on with recovery and live
with the pain.
Chris Staerck
[Re: The fall of Bob Diamond: How tragedy
can stalk even the most powerful, Friday]
Crowing at the resignation of Bob Diamond is
just another instance of popular glee when-
ever anyone successful falls from a great
height. And Marc Sidwell is right to say its a
tragedy through their hard work, these
men and women enrich all our lives.
TimWalker
P
RESIDENT Franois
Hollande is only just
settling into the Elyse, but
ripples of unrest towards
his tax policies are already
being felt, both in France and
further afield.
The headline figure is the pro-
posed 75 per cent rate of income
tax, which will apply to income of
over 1m (793,000) a year. This
will be a substantial increase for
those taxpayers albeit few in
number whose income falls with-
in this bracket. Of wider impact are
the proposed changes announced
by the French government on 4
July. These involve not only
increased rates of income tax, but
also wealth tax, capital gains tax
and inheritance tax. Some of the
changes will affect a considerably
larger proportion of the popula-
tion, including non-resident own-
ers of residential property in
France.
These significant increases in tax-
ation may result in less revenue
being generated, partly because
some who would be affected by the
new rules will simply move abroad
until the tax climate improves.
This would have the wider conse-
quence that France could lose the
sort of people who are helpful to
have around in difficult economic
times entrepreneurs and high-
achievers.
Prime Minister David Cameron
recently quipped that England
would be rolling out the red car-
pet for French taxpayers seeking
to escape the 75 per cent charge.
This remark was, for obvious rea-
sons, not well received across the
Channel. Economies in the devel-
oped world all seek to attract
organisations and talented individ-
uals who will stimulate economic
growth. The UK is not alone in
TOP TWEETS
There is no such thing as cheap money.
Everything has a value that must be paid
sooner or later.
@Parsonsivor
Blaming Ed Balls for Libor because he was
City minister is like blaming the transport
minister for every car crash.
@campbellclaret
I cant understand the calls for a judge-led
inquiry into Barcays, considering the waste of
time and money Leveson has become.
@ChillieHead_86
Hollande is more grounded in reality than
Labour. He admits that national debt is the
enemy of the left.
@David_RutleyMP
Have recent events shown that relationships
between banks and regulators are too close?
YES
Without banking Britain is bust, a taxi driver recently told me. He
is right. A competitive, free, financial market is vital to our countrys
well-being. Any regulation imposed should be applied equally to all
market participants. What the Libor scandal has shown is that the
too big to fail principle has created a regulatory advantage for
bigger banks. Regulators and banks have a cosy relationship of soft
words, nuances and nudges on how banks can conduct their
business. This is dangerous and unfair. Smaller players in the
markets do not have the same relationships and consequently pay
for it in higher trading costs or increased regulatory burden, while
compliance officers face huge personal costs when their advice is
ignored. Our concern is that regulators have to be seen to be fair to
all, not just the special few. Otherwise the financial markets will
smell and rat and desert the great ship, the City of London.
Steven Woolfe is Ukip financial services spokesman.
Steven Woolfe
NO
Stephen Gilchrist
Pointing the finger at the FSA and shouting conspiracy! misses the
point. Cock up is a more accurate battle cry. While individuals
within the regulator are assigned to individual banks to enable it to
understand the banks business, it is not the regulators business to
manage the banks affairs. Resourcing and the quality of resources is
the issue. Missing warning signs about Libor problems is not
necessarily indicative of an unhealthy relationship with the banks. It
points much more towards the dichotomy of a relatively compact
regulator being expected to monitor the behaviour of a global
financial giant, operating in an essentially amoral industry. Especially
when the tension between doing well for the bank, the economy or
the commission-earning individuals within it, is ever present. Trust
also plays a part. The banks must comply with FSA principles. It must
be assumed as a default position that they are in fact doing so.
StephenGilchrist ischairmanandheadof regulatorylawat SaundersLaw.
RAPIDresponses
Hollande is at risk
of slaying Frances
golden tax geese
doing so, and one of the balancing
acts facing the new government in
France will be to avoid frightening
off those who fall within this cate-
gory either currently based in
France or looking where to invest.
Where governments wish to
retain internationally mobile
entrepreneurs and investors, the
way in which they introduce tax
and the language they use about it
can be important. An example of
how not to do it was seen in the
unrest caused within the interna-
tional community in the UK in
2008 when, without warning, the
previous UK government proposed
sweeping changes to the tax sys-
tem affecting non UK domicil-
iaries.
The tipping point at which any
individual decides to move from
one country to another, or to cease
investing in one economy in favour
of another, will always depend on a
range of circumstances by no
means only to do with tax. But as
governments the world over have
learned, there is a point at which
raising taxes can become counter-
productive.
In the 1970s, when tax rates in
this country had reached 98 per
cent, some took the view that
France was a pleasanter place to be
resident. It will be interesting to
see how many residents of France
decide to reverse that trend.
James Johnston is a private wealth
partner and head of the French group at
Bircham Dyson Bell.
MONDAY 9 JULY 2012
JAMES JOHNSTON
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Discount brokers offer funds
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A
RE you ready for the retail
distribution review (RDR)? After
many years in the planning, the
implementation of the RDR is
quickly approaching on 1 January
2013. While it will change the way
financial advice is received, recent
surveys show there is little awareness
amongs investors of the review and
why it matters.
An InvestSmart survey found 93 per
cent of investors have no awareness of
the RDR, while another, carried out by
Defaqto, found that 80 per cent of
independent financial advisers (IFA)
believed the public knew nothing of
the RDR. However, every investor
should be speaking to their advisers
about the RDR.
Sadly, when it comes to financial
advice many investors do not under-
stand what they are paying for and
whether its a fair price. The RDR is
designed to help solve this problem. It
represents a very important change in
the regulation of financial advice,
designed to improve value for money.
Investors will be entitled to clear and
simple information about the fees
they are being asked to pay, and
should therefore in a better position to
decide whether they represent fair
value. There are three main things
investors should be asking their finan-
cial adviser about:
Find out what kind of advice
your adviser will be giving you.
Under the RDR, all advisers will have
to inform their clients whether they
provide independent or restricted
advice before the advice is given.
Independent advice is based on a com-
prehensive and fair analysis of the rel-
evant market. It is free from
restrictions that could impact on the
advisers ability to recommend what is
best for the client.
If the advice is not independent, its
called restricted. It can translate into
advice on a limited range of products
What to ask your financial
adviser to avoid costly fees
Y
OUVE probably changed the
way you buy airline tickets
and car insurance over the
last decade, and its likely
that you shop around on the
internet or buy through price
comparison sites. But what about
the way you invest your own
money?
Some of us do it ourselves, some
leave it to a trusted adviser, but
most of us give it as little thought
as possible. According to our
recent research, there are 6.5m
active private investors in the UK
and the number of people who
choose to do it themselves is
increasing. There is a view that we
all need to take more interest and
have more control over our long-
term financial security. If that
means managing your investments
online, what are the options and
which approach is right for you?
Self-directed investors often use
platforms or fund
supermarkets and most services
will include the ability to buy and
sell investments, and to take
advantage of tax savings in pots
like individual savings accounts
(Isa) or self-invested personal
pensions (Sipp). As well as showing
users what theyve got, they
usually offer information and
guidance to help them make
investment decisions.
Asset managers will sell their
own funds directly to you through
their websites, but it may not
always save you money compared
to buying through your
Independent Financial Adviser.
Most wont give you access to other
asset managers funds or enable
you to manage other investments.
However, some have decided to
offer open architecture, where you
can buy other companies funds on
their platform. Fidelity was one of
the first with FundsNetwork,
which is a comprehensive
customers to consolidate all their
pensions into Sipps an approach
that Bestinvest would also like
their clients to take.
Stockbrokers have traditionally
specialised in listed securities, like
stocks and shares, but these days
they are making it easier and
cheaper for their clients to include
funds in their portfolios. Barclays
Stockbrokers re-launched their
proposition in February, with
more focus on funds and more
competitive pricing. Interactive
Investor has done the same and
has a website jammed full of
information and tools for
engaged investors.
But what about
the millions of
people who dont
enjoy managing
their investments?
Barclays and HSBC have
both launched simple
investment
propositions over
the last year, so
Are you sitting comfortably...
MONDAY 9 JULY 2012
18
cityam.com
PERSONAL FINANCE MANAGEMENT WEALTH
or providers. Firms who offer restrict-
ed advice will be required to tell you
this and what the restriction is before
they provide a service.
Know what you are paying your
adviser for and give your con-
sent. Advice has never been free, but
many consumers may think it has
been because they previously paid
the adviser indirectly, through the
money they invest in the product.
The RDR will require advisers to make
any such payments explicit (if they do
not do so already) and gain your con-
sent.
Know your advisers pricing
model. Ask your adviser how
much they propose to charge and
what services they will provide for
that fee. Do not confuse the cost of
advice with the cost of the product
you are buying. If the adviser propos-
es to link their fee to the cost of the
product so that you do not have to
pay for advice directly, be very sure
that you understand the on-going
payment that the adviser will receive
as a result of this arrangement post-
RDR. And satisfy yourself that it is a
fair payment for the on-going advice
they are providing.
A big issue is the advice gap the
RDR could bring to investors with
lower amounts of money to invest.
There is speculation that financial
advisers who are unable to meet the
RDR requirements will leave the
industry. In addition, the fee-based
approach will mean certain
investors are unable, or unwilling, to
pay for financial advice. These
investors will be left to a Do It
Yourself approach to investing and
plotting their financial future them-
selves. There are a number of compa-
nies that already fill this gap and
more are on the way. If you fall into
this category, ensure you explore the
options available to secure a solid
financial future.
Ultimately, in the lead up to RDR
implementation, dont be afraid to
ask direct and perhaps difficult
questions around the changes the
RDR will bring and what they mean
for your investments. Good advisers
should welcome a client who wants
to be informed, and good advisers
should be confident about the quali-
ty of their work and the fact that it
justifies the fees they wish to charge.
Graham Mannion is managing director
of InvestorBee.
Modern means for managing your money
you can see your investment
portfolio next to your online
banking. New entrants, like
InvestorBee and rplan, offer new
thinking using the wisdom of
crowds and slick planning tools to
guide your decision making.
So which platform is right for
you? It very much depends on your
experience and your level of
engagement with your investments
but there are plenty different
propositions for different types of
people horses for courses. Do you
want simple, sophisticated, hand-
holding or ultra low cost? Are you
a long-term saver or a short-term
trader? Figure out whats
important to you and there are
good options to put your money
on. Try www.which.co.uk for
further tips, or look at
www.candidmoney.com which has
guides to using fund supermarkets
and Isa discount brokers
including the costs involved.
Jeremy Fawcett is head of new platform
channels at The Platforum.
INVESTMENT
COMMENT
GRAHAM MANNION
Big changes are happening in the way you are charged you need to understand this new investment landscape
INVESTMENT
COMMENT
JEREMY FAWCETT
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Dreadlock holiday: Clockwise from top, GoldenEye and below, Fleming pictured in 1964
For a relaxing paradise vacation, Jamaicas finest is worth a look, says Lucie Greene
LIFE&STYLE
MONDAY 9 JULY 2012
20
cityam.com
TRAVEL
KINGSTON: NEED TO KNOW
SLEEP:
Stay at GoldenEye from 355 per night. Price
is based on two sharing a Lagoon Suite and
includes breakfast.
Stay at Strawberry Hill from 150 per night.
Price is based on two sharing a one-bedroom
cottage and includes breakfast.
To book: visit www.islandoutpost.com or call
01895 522 476
FLY:
All-inclusive World Traveller fares are
available to book on ba.com for 679. World
Traveller Plus fares are available from 1,095
and Club World fares from 1,975.
T
HE SUN descends over Kingston
town, casting a warm blood
orange-hued glow over the city
and dramatic dock beyond. At
street level music systems crank out
raga, cars beep, locals chat animatedly
by beer shacks and jerk chicken
stands as our car weaves masterfully
through the throng of traffic. Rush
hour, explains our driver, handing
me a beer as I sit back, watching the
sunlight fade. Were here to unwind
in two legendary, recently refurbed
resorts: Golden Eye and Strawberry
Hill and already Im relaxed.
Jamaica is having a bit of a
moment. Stars have been flocking to
the island of late (not least HRH Prince
Harry on his recent Caribbean tour.) In
addition to the buzz surrounding
Golden Eye and Strawberry Hill,
GeeJam, one of the islands other hot
hotel residences and partnering
resorts, has become the go-to for any
recording artist in search of a record-
ing haven (Alicia Keys is in residence
when I am there, making her album at
the hotels studio. Snoop Dog took it
over last month.)
Sensing the movement, perhaps, in
March British Airways also increased
its flight frequency for the summer to
Kingston from Gatwick Airport from
two to three flights a week.
GoldenEye owns almost mythic sta-
tus in Jamaican history. The home of
Ian Fleming from 1946 (and place
where all James Bond novels were
penned), theres not a celebrity or icon
who hasnt frolicked on its beaches.
Noel Coward loved staying there so
much he bought a house, Firefly, near-
by in 1949. Throughout the 1950s, the
small strip of northern coastal land
was a hub for visiting luminaries
including Katherine Hepburn,
Elizabeth Taylor and Errol Flynn, who
gallivanted on its beaches. The proper-
ty later gained Rock and Roll status
when Island Records founder and
Jamaican resident Chris Blackwell pur-
chased it in 1976, attracting The
Rolling Stones, Sting and others to
hang out and party.
Hes done the same with GoldenEye
in the past year, adding 25 acres, build-
ing 21 swanky new hut residences and
suites for guests around the pristine
beach and lagoon, adding a dramatic
saltwater pool and beach bar-meets-
infinity pool, refreshing the original
Fleming Villa as a sleek MTV cribs-style
(but chicer) five bed residence, and
launching a lagoon spa. The result is
quite something: a secluded Jamaican
oasis with a blissful beach on one side,
emerald lagoon waters on the other,
and lush jungle-bedecked hills in the
distance. Its easy to see why the resort
is attracting fresh waves of glitterati
P Diddy, Jay Z, Beyonce, Naomi
Campbell and Kate Moss are some
recent visitors.
But enough of the celebrities. My
abode for the duration is one of the
new beach huts, a one bedroom suite
complete with vaulted ceiling, living
area (with gigantic daybed), ceiling
fans, roll top bath, kitchen, garden
(with outdoor shower), and most
blissfully a terrace with steps direct-
ly on to the beach. The vibe is laid-back
luxury I pad around bare foot in a
bikini, lounge in the resorts beautiful
tie-dye bath robes (made by a local
artist) and mix myself drinks at the
kitchenette.
Vibrant stylish furnishings come
courtesy of 1960s doyenne Barbara
Hulanicki. The Bizot beach bar is
meters away and cranks out rare reg-
gae, ska, and hip hop throughout the
day. Each of the suites has all the frills
youd expect, including free wifi, tea,
coffee, bottled water, cable TV. At
night I fall asleep to the soundtrack of
gently lapping waves. Its heaven. The
food is pretty good too, modern
Jamaican food a twist, and bistro clas-
sics if you want them. Slow cooked
ackee and salt fish in the morning
with a coffee starts the day. Coconut
crusted shrimp in the evening is a hit.
The barmen at both the resorts mix a
mean rum punch. GoldenEye is prima-
rily about relaxing but there are water-
sports on offer if you choose. Jet skis
are available to hire. Snorkelling,
kayaking and paddle boarding are
free. I spend one afternoon paddling
round the lagoon and in to the next
bay. The spa is recommended; all the
treatment rooms are in self-contained
huts built in to the hillside with open
shutters that allow a gentle breeze.
Treatments use locally-sourced ingre-
dients. (I had a warming deep tissue
pimento and ginger massage with
tropical birds tweeting outside which
sends me in to a relaxation coma.)
Nearby the town of Oracabessa is
worth a look for a slice of local life. I
also visit Firefly, Noel Cowards dra-
matic hilltop residence, which boasts
staggering views across the coastline.
And on to Strawberry Hill The drive
from GoldenEye to Strawberry Hill
which is perched high in the hills over-
looking Kingston is a winding tra-
verse through the Jamaican Hills. Its a
fascinating, and beautiful, window in
to Jamaican life. I stop to buy jerk
chicken from roadside stands and
fresh (fresher than Ive ever tast-
ed) pineapple. The final zig
zag in to the clouds seems
endless at one point, but we
eventually turn a corner in
to the Strawberry Hill
grounds and its clear that
its worth it. Strawberry Hill
is 3,100 meters above sea level.
Originally a 18th century cof-
fee plantation, then a restau-
rant, its been owned by
Chris Blackwell since
1972, who trans-
formed it in to
a hotel in the 90s, adding several
rooms, and later the pool. The hotel
has just completed a careful restora-
tion and facelift for 2012.
Theres something utterly charming
about this place. The small 19th centu-
ry-style white wooden hut residents
are perched in to the surrounding hill-
side around the main clubhouse, and
feel like a window in to a bygone colo-
nial era. Original features, such as tra-
ditional cut out wooden decorative
panels featuring giraffes and lions
have been kept. Cute kitchenettes in
rooms feature original decorative tiles.
Each has small balconies overlooking
the mountainscape.
They have all the luxuries soft bil-
lowing sheets and four-poster beds
but theres also a feeling of
old-fashioned rusticness too.
Floorboards creek, the
doors are locked using
(wait for it) actual keys,
theres no air conditioning
(you dont need it that high
up) and no internet, except
for in the clubhouse. At the
heart of the property, and at
its highest point, is the club-
house and restaurant,
which features one of
the most dramatic
and stunningly beau-
tiful infinity pools I have ever seen. A
glacial pane of water gives way to palm
trees and Kingston bay beyond. Guests
can eat by the pool, or sit on the open
terraces.
At night local Kingstonians come up
to sample the Jamaican fare. Like
GoldenEye, Strawberry Hill is also
steeped in cultural history. Bob Marley
famously convalesced here after being
shot in 1976. The Rolling Stones,
Marianne Faithful, Grace Jones, Sting,
Peter Tosh, and Willie Nelson have also
drank in its bar and today an expertly
crafted playlist still infuses the atmos-
phere with grooves from 8am
onwards. Nearby, guests can wander to
the local Craighton Estate Coffee
Plantation and buy Blue Mountain cof-
fee. The hotel also has a decent spa.
But really its all about the views. I
spend one, two, then three days peri-
odically looking up from a book to
take in the majestic landscape
shrouded in mist one minute, and
drenched in sunset the next. Its gen-
uinely breathtaking. Only a visit to the
Bob Marley museum in downtown
Jamaica is enough to lure me down to
Kingston (well worth a look if only
for the fact that the guides actually
sing Bob Marley tunes at you.) Theres
just about room for one rum punch
then its home.
Live like a true king in Kingston
The Bob Marley
museum is worth a
visit to hear the staff
sing his tunes to you

21
TV & GAMES
cityam.com
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BBC1
SKY SPORTS 1
7pmFight Night Countdown
7.30pmLive Super League 10pm
Fight Night Countdown 10.30pm
Time of Our Lives 11.30pmGolden
Moments of European Football
12.30amSoccer AM: The Best
Bits 1.30amSuper League 3am
Sports Unlimited 4am
Watersports World 5am-6am
Max Power
SKY SPORTS 2
7pmLive World Cup Speedway
10pmNASCAR 11pmSporting
Greats 11.30pmBritish Miler
12amFight Night Countdown
12.30amWorld Cup Speedway
3.30am-4.30amNASCAR
SKY SPORTS 3
7pmLive Winning Post 9pm
Thrillseekers 9.30pmBritish Miler
10pmWWE: Late Night Bottom
Line 11pmWWE: Late Night
Afterburn 12amWWE: NXT 1am
WWE Vintage Collection
2am-4.15amWWE: Late Night
Raw
BRITISH EUROSPORT
6pmLive UEFA Under-19s
Championship Football 8pmUEFA
Under-19s Championship Football
9.15pmCycling: Tour de France
10.20pmMotoGP 11.20pm
Rallying 11.35pm-12.35am
Cycling: Tour de France
ESPN
7pmPress Pass 2012 8pmBeach
Soccer 9pmMajor League Soccer
10.45pmESPN Kicks: Extra 11pm
NBA Action 11.30pmPress Pass
2012 12amUFC 148: Silva v
Sonnen II 4amGRAND-AM Road
Racing 5am-6amNHRA Drag
Racing
SKY LIVING
7pmCriminal Minds 8pmStrictly
Baby Ballroom9pmBritain &
Irelands Next Top Model 10pm
Criminal Minds 11pmKatie
12amBones 1amAmericas Next
Top Model 1.50am Supernatural
2.40amMedium3.30amBones
4.20amNothing to Declare
5.10am-6amPassport Patrol
BBC THREE
7pmBritish Olympic Dreams 8pm
Dont Tell the Bride 9pmRiots:
The Aftershock 10pmEastEnders
10.30pmSnog, Marry, Avoid?
11pmFamily Guy 11.45pm
American Dad! 12.30amRiots:
The Aftershock 1.30amSnog,
Marry, Avoid? 2amComing Here
Soon 3amDont Tell the Bride
4amBritish Olympic Dreams
5am-5.30amSnog, Marry, Avoid?
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmDavid Blaine:
What Is Magic? 9pmRevenge
10pmThe Inbetweeners 11.10pm
Rude Tube: Mashed n Mixed
12.15amThe Big Bang Theory
1.15amScrubs 1.40amHow I
Met Your Mother 2.10amThe
War at Home 2.30amRules of
Engagement 2.55amMy Name Is
Earl 3.40am90210 4.20am
Greek 5am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 9.30pmAmerican
Restoration 10pmAmerican
Pickers 11pmStorage Wars
11.30pmPawn Stars 12am
American Pickers 1amPawn Stars
1.30amAmerican Restoration
2amPawn Stars 3amSwamp
People 4amThe Last Days of
World War Two 5amPawn Stars
5.30am-6amAmerican
Restoration
DISCOVERY
7pmBear Grylls: Born Survivor
8pmExtreme Drug Smuggling
9pmBear Grylls: Born Survivor
10pmSons of Guns 11pmFinding
Bigfoot 12amBear Grylls:
Born Survivor 1amSons of Guns
2amAuction Kings 3am
American Chopper 3.50amIce
Pilots 4.40amBear Grylls: Born
Survivor 5.30am-6amDestroyed
in Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pm
Secretly Pregnant 9pmUntold
Stories of the ER 10pmHospital
Sydney 11pmFat Hospital 12am
Untold Stories of the ER 1am
Hospital Sydney 2amFat Hospital
3amWife Swap 4amBirth
Stories 5am-6amBirth Days
SKY1
7pmThe Simpsons 8pmA League
of Their Own 8.30pmSpy 9pm
Cop Squad 10pmSpartacus: Gods
of the Arena 11.10pmStrike Back:
Project Dawn 12.10amCosta Del
Street Crime 1.40amStargate
SG-1 3.35amEmergency Animal
Rescue 4.35amAirline
5.05am-6amSell Me the Answer
BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News 6.30pmBBC
London News 7pmThe One Show
7.30pmFood Factory; BBC News
8pmEastEnders 8.30pmBritain
on the Brink: Back to the 70s?
Panorama 9pmBlackout 10pm
BBC News 10.25pmRegional News
10.35pmCHOICE How to Live
Beyond 100 11.15pmThe Graham
Norton Show12amFILM
Educating Rita: Comedy drama,
with Michael Caine. 1983. 1.45am
Weatherview1.50amSign Zone:
Coast 2.50amSign Zone: The Little
Paris Kitchen: Cooking with Rachel
Khoo 3.20amSign Zone: Fake
Britain 4.05amSign Zone: Great
British Railway Journeys Goes to
Ireland 4.35am-6amBBC News
6pmEggheads
6.30pmThe Farm Fixer
7pmFaster, Higher, Stronger:
New series. The history of the
Olympic Games.
8pmCHOICE Volcano Live
9pmDouble Cross: The True
Story of the D-Day Spies
10pmQI
10.30pmNewsnight; Weather
11.20pmLost Land of the
Volcano
12.20amWorlds Most
Dangerous Roads
1.20amBBC News 3.15amThe
Super League Show4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmCountrywise
8.30pmCoronation Street
9pmLive Who Wants to Be a
Millionaire? The People Play
10pmITV News at Ten
10.30pmLondon News
10.35pmI Took My Babys Life
11.35pmIn Plain Sight
12.20amJackpot247; ITV
News Headlines
3amJeremy Kyle Show3.55am
ITV Nightscreen 4.35am-5.30am
The Jeremy Kyle Show
6pmThe Simpsons 6.30pm
Hollyoaks 6.55pm4thought.tv
7pmChannel 4 News 7.55pm
Channel 4 Presents: London 2012
Stephen Miller Part III 8pm
Secrets of the Taxman: Channel 4
Dispatches 8.30pmJamies
Summer Food Rave Up: Jamie
Oliver cooks sticky ribs and a
festival breakfast. 9pmCHOICE
Undercover Boss 10pmThelmas
Gypsy Girls 11.05pmComing Up
11.40pmRandom Acts 11.45pm
Embarrassing Bodies: Live from the
Clinic 12.45amThe Good Wife
2.15amThe Big C 2.45amFILM
The True Story of Jesse James:
1957. 4.20amSt Elsewhere
5.05am-6amDeal or No Deal
6pmHome and Away
6.30pm5 News at 6.30
7pmJurassic Park: The True
Story; 5 News Update
8pmNew Police Interceptors;
5 News at 9
9pmBig Brother
10pmThe Walking Dead: Rick,
Hershel and Glenn face foes
both dead and alive.
11pmFILMHollow Man: Paul
Verhoevens sci-fi thriller,
starring Kevin Bacon. 2000
1.05amSuperCasino 3.55amGreat
Artists 4.20amWildlife SOS
5.10amHouse Doctor
5.35am-6amHouse Doctor
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
23 24
25 26
26 30
11 15
22
17 10 13
34 9
15 11
8 33
14 12 6
37
27 13
10 29
9
16
10
4
3
36
13
22
19
39
28
7
16
12
21
24
6
23
37
13
8
15
12
9
ACROSS
1 Boasts (5)
4 Fruit of the oak (5)
7 Constricted (6)
9 Expel (gases or
odours) (4)
10 Unit of heredity (4)
12 Submerge in
a liquid (4)
13 Facing of a jacket (5)
15 High mountain (3)
17 ___ Island, New
York Bay area (5)
19 Number indicated
by the Roman V (4)
21 Estimation (4)
23 Osculate (4)
24 Making an
attempt (6)
25 Leaves of a book (5)
26 Take an oath (5)
DOWN
1 Cast out (6)
2 Postal service for
overseas (7)
3 Mixture of fog
and smoke (4)
5 Slink (5)
6 Short letter (4)
8 Strongly built,
sturdy (4-3)
11 Forty winks (3)
14 Large imposing
building (7)
15 Be of service (3)
16 Pauper (6)
18 Strong, tightly twisted
cotton thread (5)
20 Gait in which steps
and hops alternate (4)
22 Painting, sculpture,
music, etc (4)
H
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C A F E S A R M E D
Y A A E G
N U N C I O T A R E
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C O Y O T E I O T A
A P R E G
L A C E S A V A G E
M U R D E R E R L
F E T A E U R O P E
N T B M S
A D D E R A R A B S
1 9 8 4 9 7 6
3 7 2 6 1 8 4 9 5
8 6 9 3 1 2
2 4 1 5 7 6 8 9
7 5 5 1 3 5 2
7 9 3 6 2
1 4 6 7 9 6 1
5 1 4 3 2 1 7 5
7 9 8 9 5 8
4 3 8 6 1 5 2 9 7
7 2 9 3 7 2 1
4
4
4
4
4
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4
The nine-letter words were
ADVERSITY
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
MONDAY 9 JULY 2012
HOWTO LIVE BEYOND 100
BBC1, 10.35PM
Centenarians reveal their thoughts on
seeing 100 years of change, describing
how their attitudes and opinions have
altered over time.
VOLCANO LIVE
BBC2, 8PM
Exploring the science of vulcanology
and how Kilauea on Hawaiis Big
Island is transforming the terrain that
surrounds it.
UNDERCOVER BOSS
CHANNEL4, 9PM
Peter Marks, the CEO of Britains
biggest nightclub chain, which includes
well-known brands Oceana and Liquid
goes undercover in his own business.
TVPICK
Moved Murray
sobs after final
loss to Federer
Sun shines on Red Bull
as Webber grabs win
World No4 Andy Murray has now lost in each of
Rain was predicted at Silverstone, yet the clouds stayed away for winner Mark Webber
MONDAY 9 JULY 2012
22
SPORT
cityam.com/sport
RED Bull driver Mark Webber poured
praise on his colleagues efforts yester-
day after leading the Milton Keynes-
based team to their third Formula One
victory at Silverstone in four years.
Webber, who has held talks with other
teams with a view to leaving Red Bull,
pipped Ferraris Fernando Alonso to
first place with only three laps
of an action packed British
Grand Prix to go.
Its a very special victo-
ry for the team, being
just down the road
thanks to them for doing
a great job, an elated
Webber said, having won
in one hour, 25 minutes, 11
seconds. A bit of strategy at
the end there [worked for us],
Webber said, after instructions through
the team radio helped him overtake
Alonso on lap 49.
The Australian lives only a short drive
from Silverstone, while Red Bulls base is
a mere 18 miles away. Webbers team-
mate Sebastian Vettel completed the
podium, to hammer home Red Bulls
recent domination of the British Grand
Prix. Torrential rain had disturbed quali-
fying throughout Saturday afternoon, yet
stayed away for yesterdays race.
McLarens Lewis Hamilton was unable
to improve on his eighth place start on
the grid, while team-mate Jenson Button
only narrowly got in on the points in
10th. Force Indias Paul di Resta had to
retire for the first time in his last 24 races
after contact with Romain
Grosjeans Lotus in lap one.
Another collision occurred in
lap 13 when Williams Pastor
Maldonado crashed for the sec-
ond time in two races, taking
out the Sauber of Sergio Perez.
Perez criticised the Venezuelan
and called on the stewards to
take action, yet the Williams man
escaped with just a 10,000 fine.
Kamui Kobayashi was fined 25,000 for
a separate incident in which he crashed
into his Sauber engineers in the pit-stop.
Webbers victory takes him to within 13
points of Alonso, who leads the drivers
championship on 129 points. Vettel is in
third with 100 points, while Hamilton
has slipped into fourth place in the rank-
ings, on 92 points.
BY JULIAN HARRIS
BY DECLAN WARRINGTON
Wiggins fumes at doping talk
BRITISH cycling hopeful Bradley
Wiggins held onto the yellow
jersey after stage eight of the Tour
de France yesterday, yet reacted
angrily after the race when asked
about doping allegations made on
the social network Twitter.
I cant be doing with people
like that, Wiggins said during an
expletive-fuelled rant against
critics who have suggested that
winning the Tour is impossible
without the use of performance
enhancing drugs.
Theyre just ****ing ******* ... its
easy for them to sit under a
pseudonym on Twitter and write
that kind of **** rather than get off
their ****es and apply themselves
and work hard at something, he
told reporters.
His sentiments were later backed
up by fellow Team Sky racer Chris
Froome, who took to Twitter itself
to make his point. Critics need to
wake up and realise that cycling
has evolved. Dedication and
sacrifice equals success, he wrote.
Wiggins even took a jibe at the
popularity of tennis, on a day that
millions were glued to the mens
final at Wimbledon. Tennis is
nothing. It only lasts one and a
half hours, he barked.
Yet the Team Sky man had
reason for a rosier outlook, after
retaining the overall lead of the
Tour ahead of todays stage nine.
French crowds cheered on
youngster Thibaut Pinot yesterday,
as he rode to victory in three
hours, 56 minutes and 10 seconds.
Wiggins finished fourth, one of
a pack that came in 26 seconds
behind. Overall he stays 10 seconds
ahead of Cadel Evans.
BY JULIAN HARRIS
@cityam_sport
BRITISH No1 Andy Murray failed to
fight back the tears that emerged
from a defiant defeat after win-
ning the hearts of a nation against
Roger Federer in yesterdays final
at Wimbledon.
The Scots performance was as
gutsy as his fate was cruel, but if he
possessed a composure that had
previously eluded in past grand
slam finals, new world No1
Federers greater class and experi-
ence ultimately separated the two
on an afternoon when hope was
regardless renewed about Britains
possession of a genuine grand
slam winner.
In securing the matchs opening
set, Murray had displayed the suit-
ability in style that had inspired
such a promising record over the
Swiss but even though his play
underlined the same dogged deter-
mination that had earned a first
final at the All England club, the
sports greatest ever player had yet
another level to unlock from
which he produced his latest land-
mark triumph with a 4-6, 7-5, 6-3,
6-4 scoreline.
Im getting closer, said Murray,
the emotion in his voice as
patent as the pride emitted
from a loyal crowd towards
the All England Clubs mod-
ern day hero. Im going to try.
This is not going to be easy.
Firstly Id like to congratu-
late Roger.
I was asked the other
day: Is this your best
chance, Roger is 30 now?
Hes not bad for a 30-year-
old. He played a great
tournament. I know he
had some struggles with
his back, but he showed
what fight he had.
He deserves it. Ill try not to
look at him as Ill start [crying]
again. Thanks to everyone who has
supported me. You did a great job.
And last of all to the crowd.
Everyone always talks about the
pressure of playing a Wimbledon
and how tough it is. Its not the
people watching, you make it so
much easier to play. The support
has been incredible. Thank you.
Id say thats the best Ive played
in a slam final. I created chances, I
went up a set.
It was a long match. Even the
last two sets, I still had chances.
The game where I got broken in
the third set was a very, very long
game. I had a lot of game points.
It wasnt like I gave away bad
games or stupid games and stuff. I
played a good match. I made pretty
good decisions for the most part,
so Im happy with that.
I felt more comfortable this
morning and before the match
than I had done maybe in the pre-
vious slams.
Murrays other grand slam final
defeats in the 2008 US Open and
the 2010 and 2011 Australian
Opens showed a player unpre-
pared for the pressures associated
with a Major final but yesterday
afternoon that was simply
never the case. During the
week he spoke convincingly of
dealing with the stresses that had
built and so it proved when
business truly began; this was
a player ready to seize a
place in history and to use
his fans support.
For Federer, the
deserved victory repre-
sents a record 286th week
at the top of the worlds
rankings, the equalling of
American Pete Samprass
seven Wimbledon titles and
a dismissal of the criticism
that suggested his best years
had passed.
To win 90 per cent of my
matches throughout the year is
impossible every single year, he
said. So youre always going to go
through ups and downs.
But I knew how close I was for
the last few years, and some people
didnt quite see that maybe for dif-
ferent reasons. But I knew and I
Roger Federer is once
again the world No1
4
successive podium
finishes for Webber
at Silvertsone
23
the four grand slams finals he has made it to but became the first Briton in 73 years, since Bunny Austin, to reach Wimbledons final
GIGGS NAMED FOOTBALL CAPTAIN FOR TEAM GB
WELSHMAN Ryan Giggs,
the Manchester United
veteran midfielder, was
yesterday named captain
of Great Britains football
side for London 2012.
Manager Stuart Pearce
said that Giggs who
retired from playing for
Wales five years ago
was the standout
captain among his
squad. Team GB womens
manager Hope Powell,
meanwhile, named
Lincoln Ladies Casey
Stoney as captain for their
Olympics campaign.
cityam.com
MONDAY 9 JULY 2012
GLOBAL BUSINESSES
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WIMBLEDON RECORD
Mens singles winners
nRoger Federer, seven titles
nPete Sampras, seven titles
nBjorn Borg, five titles
nRod Laver, four titles
nBoris Becker, three titles
nFred Perry, three titles
nJohn McEnroe, three titles
nJimmy Connors, two titles
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RFU appoint Beaumont as chairman
n RUGBY UNION: Former England captain Bill
Beaumont has been appointed as the Rugby
Football Unions new chairman as the governing
body progress towards staging the 2015 Rugby
World Cup. Paul Murphy, meanwhile, has taken
over as President.
Spurs confirm Vertonghen signing
n FOOTBALL: Tottenham have announced the
signing of defender Jan Vertonghen from Ajax
for an undisclosed fee, subject to the Belgium
international passing a medical.
Groves announces stateside ring return
n BOXING: British and Commonwealth super-
middleweight champion George Groves will
fight Mexicos Francisco Sierra in San Jose,
America, on 28 July.
Bryan and Raymond take doubles trophy
n TENNIS: American pair Mike Bryan and Lisa
Raymond yesterday won Wimbledons mixed
double championship by defeating Indias
Leander Paes and Russias Elena Vesnina 6-3,
5-7, 6-4 on Centre Court.
think the belief got me to victory.
I think its going to take much
longer to understand what I was
able to achieve today. It was crazy
how it all happened under the cir-
cumstances. I played terrific.
Federer had been uncharacteris-
tically nervy in the matchs open-
ing set but he thereafter settled to
take control of play.
After levelling the match with a
masterful backhand drop volley in
the second, Federer took control of
the third set following a 35
minute break and the closing of
the roof because of rain to
assume a lead that he at no point
looked like conceding.
Murray remained tenacious
saving one of two Championship
points in doing so but was fight-
ing to stay in the match and sealed
his defeat when hooking an ambi-
tious forehand into the tramlines.
Chelsea captain John Terrys trial for an alleged racially
aggravated offence committed against QPR last season
begins today at Westminster Magistrates Court
IN BRIEF
Results