City Diary: How Lord Sugar schooled Rupert Murdoch in digital media Meanwhile, Murdoch - despite losing out to Random House in the race to pick up the Penguin publishing business - seems to have the inside track on the firm. "Penguin headquarters to shift from exciting London to Gutersloh," he tweeted. The German town will be news to Penguin owner Pearson, which stated on Monday the HQ of Penguin Random House, post-merger, will be in New York. 4G signals marketing war Mudslinging from Vodafone, which has cast the first stone in the 4G marketing wars by attacking the new ads from rival Everything Everywhere. EE's new TV and cinema ads sell the firm as "the new network for your digital life" by using the conceit that everyone is only six degrees of separation from actor Kevin Bacon, the star of the campaign. In fact, says a Vodafone critic, Facebook research has shown there are only four degrees of separation in the digital world. And surely four degrees of separation for 4G would have made a better shout? Leeson's lesson for recovery Who better to advise on how London can rebuild its reputation as a global banking leader than Nick Leeson, the man who brought Barings to its knees? The self-styled Canary in the Coalmine gave his unique take on how the Square Mile can dig itself out of its current hole at a "magnificent three-course lunch" yesterday in the City, where well-watered guests met for drinks in the bar at 11.30am. For a small fee for Leeson, of course - Diary hears tickets changed hands for £75. Gone with the wind. That's the fate of the hoped-for government funding for the South Yorkshire project 2Co, after energy minister Ed Davey dropped the proposal from the longlist vying for his £1bn funding pot for carbon-capture schemes. The fact that 2Co has not made the cut for Davey's final four has raised eyebrows, since the EU, which is running a parallel contest to bankroll carbon capture technology, put 2Co at the top of its list to receive its €1.5bn (£1.2bn) funds in July. Why the discrepancy? Apparently, the Department of Energy & Climate Change felt 2Co fell short of its yardstick of offering "value for money for the taxpayer." Going against the grain The stars of BBC 3 show The Revolution Will Be Televised today launch a film parodying Barclays" estimated £500m profiteering from speculating on food prices. The police "seemed sympathetic," say the film-makers, when they poured corn all over the bank's floor to highlight its "almost criminal" margins.