INFO magazine "Real Estate" by French Chamber of Commerce in Great Britain

I N F O french chamber of commerce in great britain the magazine for anglo-french business

june / july 2011 www.ccfgb.co.uk

5 minutes with

Inès de la Fressange in London

France tops table of European investors in the UK

Interview with Frédéric Mitterrand

Focus on Real Estate: London and Paris

Cannes 2011: A vintage year

Jean-Dominique Mallet, CEO of Veolia UK

A tale of two residential markets

Success Story

Launches her style guide Parisian Chic French Minister of Culture by Cinémoi

Ann Widdecombe

answers our Questionnaire de Proust

The East India Company

SHE’S ELECTRIC ZOE Preview joins Fluence Z.E., Kangoo Van Z.E., and Twizy as Renault’s amazing electric vehicle range goes on charge

ENJOY CHIVAS REGAL RESPONSIBLY

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Stranded in Lib ya

A South African ex ecutive and his fam ily had been living an d working in Libya for the past three an d a half years. He was shocked when ne ws came of violen ce against citizens. “Th at’s when I realized I had to get out an d get my family to safety,” he says. Hi s company is unab le to arrange for them a flight back home and he waits for the Go vernment to rescu e him and his family .

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Arnaud Vaissié

editorial

President, French Chamber of Commerce in Great Britain, and Chairman & CEO, International SOS

Continuity and renewal: business lessons from the Royal Wedding

ritain’s Royal Wedding has undoubtedly caught the imagination of the World. The impressive bearing both of the couple themselves and of the ceremony itself has shown to many the value of an institution that can easily be mocked in an era when style and form have tended to lose their appeal. The formality of the proceedings has brought out two elements for many of us from which businessmen can learn. First of all, there is an important place for style and presentation in ensuring the durability of your institution. In an age of ‘dress-down’ relaxation and flat hierarchy-free organisations, people still have a sense of respect for the best aspects of presentation. Companies will benefit from reviewing their décor; managers will only gain respect if they treat themselves and colleagues with respect. Second, Englishness has a strong appeal and quality, and English brands can hold their own. Global markets do not have to be homogeneous and bland. Many of us live in the UK, and we are selling to English companies. So let us remember this part of the national character, and enjoy it. The Chamber joins with the British people in wishing the happy couple and their families’ good luck. Continuity is at the core of the Royal Family, much as it is at the core of much commercial global life. This concept is for example critical to an understanding of the British residential market, as we see in this issue’s Focus. This market is a remarkable eight times the size of the commercial property sector. The concept of property ownership has an enduring place in the British private consciousness, determining many values about inheritance, continuity and personal worth. The subject of continuity and sustainability could not be more pertinent than to today’s concern with environment and we welcome the launch of our Climate Change Forum under the chairmanship of Richard Brown, the Chairman of Eurostar. This launch was one of the events noted at the Chamber’s Annual General Meeting, held on Thursday, May 12. Here it was announced that the Chamber had turned the corner in its financial performance, recording a profit this year. At the same time, the number of members has grown, indicating our dynamism and responsiveness to companies’ needs. Finally, we were absolutely delighted to welcome our new French Ambassador to the UK, HE Mr Bernard Emié, and deeply appreciative of his intentions to support the Chamber in its efforts to build bridges between French and British companies and markets. A new optimism is building as we confront the challenges ahead. I

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contents

issue 195 / June – July 2011

Cannes 2011: A vintage year

Report of the Annual General Meeting

Who controls the planning and construction process?

Success story: The East India Company

34 Inès de la Fressange launches her style guide «Parisian Chic» in London 36 The race is on towards private sector-led economic growth

Breaking News 10 The Middle East: promise of new markets

5 minutes with

Success Story

12 Jean-Dominique Mallet Chief Executive of Veolia Environmental Services UK

News in the City

France tops table of European investors

38 The East India Company

16 Royal Wedding 17 UK economy doing just fine!

News 19 France tops table of European investors 21 Mayor announces world-class consortium to construct London’s cable car 23 Recommended offer for Arsenal holdings 24 EDF Energy partners with London Eye & Tower Bridge 25 Saint-Gobain central to MediaCityUK 26 Renault rolls out new electric vehicle range 29 Thales wins Queen’s Awards for Enterprise 30 Ligne Roset unveils new collection 31 Hermès launches first ever furniture range 32 Dorchester celebrates 80th Anniversary

Real Estate The Power of London 42 London and Paris: a tale of two rising residential markets 44 In the land of the rising rent 46 The £36 billion question for property investors 48 London’s magic Legal & Planning issues 49 Lease accounting for property: make room for change 50 Who controls the planning and construction process? 52 Legal minefield in property acquisition 53 Inventories: the key to cutting out letting disputes Case Studies 54 Changing the shape of East London 55 Overseas students fill up London’s flats

33 St Pancras Renaissance’s grand opening Managing Director: Florence Gomez Editor-in-chief: Nicolas Kochan Assistant Editor: James Harrington Corp Communications Exec: Hannah Medioni Graphic Designer: Prima Hevawitharane Advertising: David Lislet - Tel: (020) 7092 6651 Publications Assistant: Pauline Beroard Cover picture: © Renault Printed by: Headley Brothers Ltd Subscription: INFO is published every 2 months.

56 The French making themselves at home in London…does it show?

Culture 57 Summer Exhibition 2011 at the Royal Academy of Arts 58 What’s on 60 Book reviews 61 Cannes 2011: A vintage year 62 Frédéric Mitterrand from Cannes: ‘French cinema is very diverse’

Wine Press News

@ the Chamber...

64 66

67 New members 68 Report of the Annual General Meeting 70 Climate Change forum launched 72 Luxury Club: Media in a new e-era 73 Basel III discussion excites Chamber members’ interest 74 Leading CSR approaches aired at fifth Forum meeting 76 Forthcoming events

Questionnaire de Proust 78 with Ann Widdecombe

Editorial Committee: Marie-Cécile Boulle, Frédéric Larquetoux, Marc Reboux & Jemma Scott.

Distribution: CCFGB members, Franco-British decision makers, Business Class lounges of Eurostar, Eurotunnel & Air France in London, Paris and Manchester.

Contributors: Philippe Albanel, Matt Black, Nathan Boublil, Marie-Cécile Boulle, Robert Colenutt, Rafael dos Santos, Sidibe Fatou, Fiona Guthrie, Andy Heiron, Philippe Lane, Frédéric Larquetoux, Thibault Lavergne, Julien Planté, Jemma Scott, Carol Wakeford, & David Wiley.

Editorial and Publishing Offices: French Chamber of Commerce in Great Britain Lincoln House, 300 High Holborn London WC1V 7JH Tel: (020) 7092 6600; Fax: (020) 7092 6601 www.ccfgb.co.uk

info - june / july 2011 -

Patron Members of the French Chamber of Commerce in Great Britain

G U I D E L I N E S

October 2009

- info - june / july 2011

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10/02/2011 16:12:42

breaking news

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The Middle East: the promise of new markets when the storm has abated

Over 1 Million in Tahrir Square demanding the removal of the regime and for Mubarak to step down. February 9, 2011

olitical uncertainty in the Middle East, coupled with the death of Osama bin Laden in Pakistan, produces a period where instability and promise seem equally balanced. On the one hand, we see the risk that markets and sources of raw materials, such as energy are jeopardised, or even cut-off, as the dictatorial regimes in power seek to retain their authority, confronting challenge from rebels. On the other hand, we see the promise of widening empowerment of the larger part of the populace.

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That over time will put prosperity into the hands of the ordinary, and currently disenfranchised people, expanding the demand side of the marketplace. Local and global business, looking for new markets, will benefit from more active consumers and a greater diversity of demand. For these reasons alone, events in the Arab world need to be watched by the global business community. Let up briefly recap on those events. They began in Tunisia in December last year, when demonstrations

followed the suicide of Mohamed Bouazizi, a university graduate who had to make ends meet by working as a street vendor. That culminated in the departure of the Tunisian leader, Zine el Abidine Ben Ali, to Saudi Arabia in January. No sooner had that event finished, than people were congregating in Tahrir Square, Cairo protesting at conditions in Egypt. Not one month later, on 11 February, President Hosni Mubarak, who had ruled over Egypt for 30 years, had quit. The events rolled on, with the next stop being Libya, where unrest in Tripoli, the capital, spread to other major centres in March. Colonel Muammar Gaddafi proved a more obstinate adversary than Mubarak. He waged war on the cities held by rebels, only being restrained by French, British and American forces, acting under United Nations Resolution 1973, setting up a no-fly zone and giving Western governments the authority to use force to protect civilians. At the time of writing, the Libyan situation is at a stale-mate. Amidst continued violence and defection within his ranks, Gaddafi tenaciously clings onto power despite the declamations arising from the international community, the rebel leaders and his own population. A meeting with South African president Jacob Zuma at the end of May heard Gaddafi announce that he was ready to agree to a previously rejected ceasefire and an implementation of a “road map” to peace in Libya, but under no circumstances would he relinquish power over the country. We can see a comparable situation in the events of the Syrian uprising, that began at much the same time, and has involved many hundreds of deaths – numbers are inexact due to the country’s secrecy – together with many arrests. The Assad family, like that of the Gaddafi family, appears determined to protect their patch and their wealth. These highlights have been joined by a large number of demonstrations and repressions in countries as far afield as Bahrain, where Saudi troops were brought in to quell uprisings, through Iraq, Jordan, Morocco, Algeria and most recently Yemen. The business community can take a number of lessons from this series of events. These fall into the categories of short and long-term. The short-term has hazards for security in the region. Business operations there, are undoubtedly at risk, and the stability of these operations has not been helped by the killing of Bin Laden. This carries great risk of reprisals. The longer-term looks more positive, while issuing the caveat that many of these situations have yet to play themselves out. The final look of the region will

breaking news

Syrian demonstration in Damascus, April 2011

remain unclear for a long time. It is also certain that each country will choose its own route, making a single and homogeneous picture less likely than one that is diverse. But, when that is all said, we are still left with a region where power and resources will be delegated beyond the narrow and privileged elite to a wider populace. An underprivileged population will have new buying power, new commercial thrust and interests. In other words, a mass market is in the process of development. The obverse of this picture is that the wealth of the powerful families, so much of which has been obtained by duress and corruption, will be dissipated. The business sectors in these countries can expect to be more transparent, and the profits made from local commercial activity will be retained inside the countries rather than taken abroad. The means with which these revolutions have been harnessed and co-ordinated also give us reasons for hope. The medium for communicating between leaders of the demonstrations and the many thousands who participated in each country has been social networking sites like Twitter and Facebook. The people engaged in the overthrow of entrenched families are sophisticated and predominantly young. They are also independent thinking, and indeed it has been widely observed how little influence or interest these young people have in the religious dogma not to say violent means of al Qaeda and the like. In short, we are looking at the makings of a marketplace, whose aspirations are drawn primarily from the Internet. This gives great reason to be hopeful over the long term, both for those engaged in commerce and for those whose main concern is regional stability. The challenge for the business community is to pick their moment to invest. Meantime, they must be watchful and infinitely cautious. I N.K

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5 m i n u t es w i t h . . . Jean- Dominique Mallet

The Chamber is pleased to announce that Jean-Dominique Mallet has just been elected as a member of the Board of the Chamber at our Annual General Meeting on 12 May 2011. Veolia Environnement has been in the UK for 20 years. Since then it has become an established player in waste collection and recycling, having invested £1 billion and gained around 20 percent market share. Here, Jean-Dominique Mallet, its chief executive, explains its achievements and strategy.

INFO: Is waste management the largest part of Veolia Environnement?

Worldwide, water is the largest part of our company, but in the UK, it is waste. Waste is big here because ten years ago the UK was called “the dump of Europe”; put everything in a hole and say goodbye. In the last ten years the UK has accelerated its transformation at a pace that has never been equaled in the rest of the world. The UK followed the precedent set by the European regulators and introduced a landfill tax some ten years ago which has risen every year by £8 to reach £56 per ton at the end of April 2011. So because it is becoming so expensive, in addition to the environmental impact, everybody has had to find alternative technologies and this is a market calling for about £10 billion a year infrastructure in the next ten years. It is a very important market for the environment, and obviously for environmental services, and the UK already is the largest country in the waste management sector after France, in terms of turnover, for Veolia. To what do you ascribe your continuing success here in the UK?

We have been committed to this business for so long,

12 - info - june / july 2011

so we have brought commitment and technology. The waste management business of Veolia was created in 1923 with horses and carts. It is a fascinating story; we just celebrated twenty years presence in the UK; our first UK turnover was £20 million and today it is £1.4 billion. But a lot of it is due to the fact that the UK changed pace, and today, to their credit, it is one of the most advanced countries in terms of waste management, and one of the smartest examples in terms of intelligent public/private partnership. So, Veolia has absolutely decided that the UK is a strategic place to invest. We have already invested about £1 billion in the UK, which is a very reasonable amount of money. And we invest around £200 million per year. We continue to grow, because we continue to invest. Do you think that being French affects the way your company does business in the UK?

A key role for me is to be the right conduit between France and the UK. I am able to bring a little bit of Anglo-Saxon culture into France and a little bit of French culture into the UK; these countries are so complementary. The name of the game for us is to benefit from best practices, from centralised technical know-how, and make sure we learn from each other.

5 m i n u t e s with Jean-Dominique Mallet

is the tonnage this week?” because we measure every truck, every day, in every treatment facility. Do you get involved at an early stage with product manufacturing? It seems it might be logical to solve some of the practical recycling problems before they even made themselves felt.

Jean-Dominique Mallet • CEO UK & Executive Vice President Northern Europe & Australia

We have acquired a wide range of expertise in the industry which we provide to our clients. People understand that we have been doing the business for 150 years, and that you are likely to do best what you have been doing for a long time. Has the economic downturn significantly impacted on your business and the waste sector in general?

Yes. The UK has been the hardest hit country; it is the one suffering now, and there is a direct correlation between the volume of waste and economic output. By seeing the volume collected every week, we knew how bad the recession was. I remember very well in December 2010, everybody was telling distinguished guests that the economy was coming back, and there was reason for optimism, and I said, “I can tell you that I weigh the waste everyday and it’s not back.” A month later it was announced that GDP was negative in the last quarter. Now, some friends call me and say, “what

Yes, people do think about this and we assist in explaining the latest sorting technology. Take an orange juice carton; it is not easy to recycle the plastic cap. So, you need to find a system that cuts the plastic cap off. The supreme demonstration of intelligence is adaptation, and companies are integrating these ideas, and what we can give them is access to information about recycling; what is easy to recycle, what the commodities market looks like and so on; because some commodities like glass are fairly easy to recycle, but others like plastic are not. We have to help them anticipate prices. Recycling is an economy driven by commodity prices. Today the prices of commodities is high because of demand in Asia, so there is an additional incentive to recycle beyond the environmental aspect. If the price of commodities collapses, then the cost of recycling will grow. Recycling involves collecting the waste, treating it in a sorting plant, and selling the recycled product. So, whatever the state of the economy is, your cost of collection is about the same, plus or minus the energy cost, but the price of commodities can be very different. Could you indicate the company’s managerial and cultural style?

We are not French, we are a UK company. Even though our HQ is in France, we are a local company by definition because we serve local authorities as well as large well known blue chip organisations and SMEs. 90 percent of our staff in the UK are British. And yes, I am French but the next CEO doesn’t have to be. Our CEO in America is American, in Germany, German, and even though it is the Board who will make the ultimate decision, I will personally endeavour to make sure the next UK CEO is British with an obvious understanding of French culture. When you work for a multinational company, you have to respect its multinational dimension while taking into account the company’s roots. I Interview by Nicolas Kochan

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AS ONE WE CREATE SOLUTIONS TOGETHER BUILDING ON OUR LONG-TERM RELATIONSHIP C O R P O R AT E & INVESTMENT BANKING I n a g l o b a l a n d c o m p e t i t i v e e c o n o m y, y o u n e e d t o a n t i c i p a t e a n d m a k e t h e r i g h t d e c i s i o n s . Wha t e v e r y o u r o b j e c t i v e s , i t i s t h ro u g h s t r a t e g i c d i a l o g u e a n d e x c h a n g e , f i r s t - h a n d u n d e r s t a n d i n g of local envi ro n m e n t c o m b i n e d w i t h o u r p re s e n c e a n d e x p e r t i s e i n g l o b a l m a r k e t s , t h a t w e c a n h e l p y o u m eet your lo n g - t e r m g o a l s . W h e t h e r i t i s t h ro u g h a d v i s i n g , f i n a n c i n g , h e d g i n g o r d e l i v e r i n g i n v e s t m e n t s o l utions, we believe in the value of collaborative intelligence. w w w. s g c i b . c o m

Societe Generale Corporate & Investment Banking (SG CIB) is a marketing name for the corporate and investment banking businesses of Societe Generale and its subsidiaries worldwide. Societe Generale is a credit institution and an investment services provider (entitled to perform any banking activity and/or to provide any investment service under the Markets in Financial Instruments Directive (MiFID) except the operation of multilateral trading facilities) authorised and regulated by the French Autorité de Contrôle Prudentiel (the French Prudential Control Authority) and the Autorité des Marchés Financiers (the French Financial Markets Authority). Societe Generale is subject to limited regulation by the Financial Services Authority for the conduct of its business in the United Kingdom. Details of the extent of its regulation by the Financial Services Authority are available from us on request. Societe Generale benefits from the European Commission passport authorising the provision of investment services within the European Economic Area. This material has been prepared solely for information purposes, and does not constitute an offer, a solicitation of an offer or invitation, or any advice or recommendation, from Societe Generale to buy or sell any security or financial instrument or product, or participate in any trading strategy, activity or arrangement. Not all securities or financial instruments or products offered by Societe Generale are available in all jurisdictions. This communication is not intended for or directed at retail clients/investors. It is for professional clients/investors only. Please contact your local office for any further information. © ArnoLam.com -

news in the city

by Nicolas Kochan

Introduction Banks are responding to the new Basel III rules by cutting back their lending and restructuring. The question is whether this goes to the heart of the problem that caused the crash.

ÂŠ wikipedia/son_gismo

ow levels of bank capital were substantially to blame for the economic collapse of 2007 through 2009. The ratio of unencumbered funds (that is Tier One Capital) to loans extended to customers on banks balance sheets had reached a point where solvency, rather than liquidity, was at risk. The lesson from the collapse drawn by the Basel regulators, who determine capital ratios, is that an increase in these ratios would make the banking system more secure from collapse. This is the context for the Basel Committee on Banking Supervision to recommend an increase in capital and a tightening of criteria for eligible capital for banks. The result was the Basel III rules, now under development. The consequences of their implementation â&#x20AC;&#x201C; which stretches over quite a number of years to cushion the effect -- are significant. Bank lending is measured as a proportion of the capital, that must be instantly available as a safety net. When the ratio of that lending to capital is lowered, so each unit of capital supports less lending than formerly, under Basel II rules, banks either put more capital aside to keep their lending at current levels, or they cut lending levels. The impact of lower lending is a smaller bank, the impact of a greater capital set-aside is that lending charges must rise, to compensate for the opportunities lost by using the capital in other, and possibly more profitable activities. This calculation is far from simple. The impact of Basel III will be particularly felt on the largest banks as Basel is particularly concerned about institutions whose collapse poses systemic risk. But these banks are under a countervailing pressure from governments to lend to their hard pressed real economies.

Basel â&#x20AC;˘ home of the Basel Committee on banking supervision

This makes Basel III, though rather technical in concept, rather controversial in implementation, as banks have sought to rein back on lending to smaller customers as they have set aside capital to meet the Basel III regulations. For some, the issue goes to the entire purpose of the Basel exercise, rather than the banking technicalities of what now does or does not count as capital. For Basel assumes that the crisis arose because of an inadequate leverage ratio. For the critics, the problem went to the manipulation of bank balance sheets, by the use of special purpose vehicles (SPVs) to create shadow banks, that were off the balance sheet altogether. These SPVs took on board borrowings which were separate from the disclosed balance sheet and therefore did not count for inclusion in the Basel ratios. The solution to this form of management of the balance sheet is tighter disclosure and greater and more intrusive supervision of day-to-day banking activity rather than more technical measures, however well intentioned, to tinker with ratios and leverage. I

On the 17th of May, the Chamber organised a seminar sponsored and hosted by HSBC on the impact of Basel 11 and 111 on Corporate & Bank relationships. See page 73.

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news in the cit y

Royal Wedding

The Duke and Duchess of Cambridge

||| There is a business angle on everything! So how about this for pouring cold water on the nuptials of the heir to the throne. One newspaper has predicted that the British economy would lose some £5 billion because of the

extended holiday period between 22 April (the Easter holiday) and 2 May (the bank holiday after the Royal Wedding). These figures will never be proven, but the lack of people at their desks, either because they were escaping from the festivities or because they were glued to the television watching them, suggested that people were taking an extended break. But what was lost on the holidays, will have been at least partly regained from the good mood that swept the nation, in the process transforming itself into consumption and buying. Other beneficiaries were makers of bunting and commemorative items, like upmarket jewellery, gold coins, minted for the occasion. Finally, the tourist trade, long under pressure from recession, saw a bounce, as people flocked to London to see the event first hand. While this will not have been anything like the Olympics, there was definitely a sense that it was a trial run! I

Boris Johnson says it as it is, and the voters agreed! ||| Boris Johnson used characteristically strong language in joining the Alternative Voting system debate. He said the referendum, which took place on May 5, was ‘a last gasp from the bunker of the man who lost. The whole thing threatens to be a damp squib. Which is a shame, because the more closely people focus on what is being put to the people, the more clearly they should see that this is a gigantic fraud.” He added it was “complete tripe” that MPs elected under AV would be more in touch. The AV system of proportional representation was ‘utterly bonkers’. The way the vote went, it looks like the voters agreed with Boris Johnson. They voted two to one against adopting the new system. I

Boris Johnson

M&S redux ||| There has been great rejoicing that Marks & Spencer is returning to Paris, after a ten year gap. The closure of its shop on Boulevard Haussmann was regarded as a mistake. Now the opening of the M&S store (formerly Esprit) at 100 Champs Elysées, set to take place in November, is regarded as a great opportunity. The City waits to see how the shop will be stocked, but also

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whether M&S builds out its shopping empire more widely into Paris and into France. M&S has 361 shops overseas but the vast majority of these stores are run as franchises and it has no whollyowned stores in Western Europe. The chain has four stores in China, 19 stores in India and ambitious growth plans. I

news in the cit y

profile

UK economy doing just fine! One of the UK’s top economic observers, Michael Saunders of Citigroup says the negativity is overdone. Exports are roaring away, jobless limits tolerable and policy under control.

he British economy has suffered a lot of criticism in recent months. People have looked at the GDP figures and concluded the country is going through what is very close to another recession. Not so, says one of the leading UK economists and a man whose research is read and acted on in government and leading commercial organisations. Michael Saunders has been with Citigroup for some 20 years, and is the bank’s senior economist. He says that too many commentators read the headlines, and not the details of economic data, leading them to misleading conclusions. ‘The notion Michael Saunders that the UK economy is flat is a side effect of quite misleading construction data’. The data problems arise from quirks of invoicing, but as a result the economy’s performance has been written down from almost 1 percent growth in the last quarter to a very sluggish 0.5 percent. ‘UK economic performance is fine. We are on track for annualised growth of 2 percent.’ He is also bullish on Britain’s very strong labour market, and the country’s shortage of skilled labour is greater than it has been for many years. The economy’s strength has occurred during a period of three-fold rebalancing, says Saunders. First, there is a shift in direction from public to private; second, investment is moving from a domestic emphasis to one that is more focused on exports; third, the consumption (that so overtook the economy to its detriment over the last ten years) is being replaced by a

pressure to invest. The move to exports is particularly powerful, says Mr Saunders, who cites the impact of the low pound as crucial. ‘Export growth is extremely strong in particular as regards high growth regions.’ However, he says that more than half of UK exports go to EU countries, and these are also rebounding. He sees no reason for the pound to strengthen in the short term, as the British economy climbs out of its recessionary lows. While many commentators have criticised the UK’s ‘fiscal tightening’, with its impact on government social spending, Saunders says it was an absolutely inevitable consequence of poor macro-economic management. ‘The budget deficit was only one tenth of one per cent different to that of Greece. Any notion that the UK could have avoided fiscal tightening is pure fantasy.’ He notes that the UK’s fiscal tightening is much more severe than that in place in France, while the economy has experienced a much sharper stimulus from the fall in the currency. He now expects the UK economy to rebalance, towards a norm, mid-way between boom and bust. One policy he does not expect to resurface on the political agenda, for twenty years at least, is that of joining the Euro. ‘We need an exceptionally weak currency. We need currency flexibility; this has been invaluable. The chances of the UK joining European Monetary Union over the next decade is zero!’ For an economist, that is indeed definitive, impassioned language! I N.K

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news in the cit y

Fournisseur dâ&#x20AC;&#x2122;Ã©nergie Ã Londres Pour plus dâ&#x20AC;&#x2122;information visitez edfenergy.com

18 - info - june / july 2011 %$& %NERGY IS A TRADING NAME USED BY %$& %NERGY #USTOMERS PLC 2EG .O WHOSE REGISTERED OFlCE IS AT 'ROSVENOR 0LACE ,ONDON 37 8 %. INCORPORATED IN %NGLAND AND 7ALES %$& %NERGY #USTOMERS PLC IS A WHOLLY OWNED SUBSIDIARY OF EDF Energy plc. The responsibility for performance of the supply obligations for all EDF Energy supply contracts rests with EDF Energy Customers plc.

news Compiled by Hannah Meloul

Bilateral News

France tops table of European investors in the UK Despite difficult economic conditions, the UK has received a $1 trillion of foreign direct investment. Only the United States receives more.

||| With $1 trillion of Foreign Direct Investment, a figure There are exceeded by only the USA, the already UK has proved its resilience as more than a financial center for foreign 2000 French capital in the context of an companies extremely difficult economic settled in climate. the UK, In this period, and out of hiring almost 54 countries actually investing 330,000 in the UK, France has kept its employees status as Europe’s premier investor in the country, ahead of Germany and Ireland, and it is now the third largest international investor after the USA and Japan. The USA has increased by 14 percent the number of jobs created by its investment over last year securing it the top position in the table; Japan has increased its UK-based projects by 27 percent to a figure of 107. Strong investment is also coming from China, in sixth place with 74 companies setting up in the UK in 2010. Australia, Canada and Italy also continue to gravitate towards the City. India however has dropped down to 4th place in the ratings, falling behind France, with 92 companies setting up in the country in 2010 compared to 99 for the French. Along with this increase in projects, French investment has also helped to create 3,729 jobs in the UK over this period, up from 2,765 previously, and so an increase of around 35 percent. UK Trade & Investment (UKTI) has been instrumental in supporting 35 of a total of 99 French companies in investing in the UK during the period 2009-10; the online event sales company Vente-Privée

Canary Wharf • Financial heartland

3rd

France’s ranking as an international investor in the UK after USA & Japan

and HRA Pharma, which provides products, devices and support in the area of reproductive health, have both established subsidiaries in London during the year, and Michelin has injected an extra €31 million into its tyre manufacturing and recycling facility in Stoke-on-Trent. HE Mr Peter Westmacott, British Ambassador to France, commented, “we are very glad regarding these results which underline the still very strong attractiveness of the United Kingdom. There are already more than 2000 French companies settled in the UK, hiring almost 330,000 employees”. Statistics like these should leave no doubt that the UK continues to sustain its reputation as a firstclass and highly competitive investment destination, both in Europe and worldwide. I JH

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Academics research French contribution to London Two academics are scrutinising the history, depth and importance of the French community’s impact on London, says Philippe Lane, Attaché for Higher Education.

||| The research project, led by Professors Debra Kelly (University of Westminster) and Martyn Cornick (University of Birmingham), funded by the “Arts and Humanities Research Council”, examines, for the first time, the history of the social, cultural, political and economic presence of the French in London, and explores the multiple ways in which this presence has contributed to the life of the city. It begins by retracing the historical outline of the London French. The capital has often provided a place of refuge, from the Huguenots in the 17th century, through the period of the French Revolution, to various exile communities during the 19th century, and on to the Free French in the Second World War. It also considers the generation of French citizens who settled in postwar London and then who came to London in the 1960s, especially post-68. Further, it provides insights into the contemporary French presence by assessing the motives and lives of younger French people seeking new opportunities in the late 20th and early 21st centuries. It analyses the impact that the French have had historically, and continue to have, on London life in the arts, gastronomy, business, industry, education, and the creative industries. Within this dual historical and contemporary focus, the research project will reassess the many intellectual and cultural exchanges that have characterised the relationship between French migrant and host city.

The research project therefore: • Reviews work and provides new research on the historical legacies of the French in London from the 17th to the late 20th centuries; • Analyses the impact of the French on contemporary London (from the 1980s to the present day); • Provides an innovative and up-to-date socio-cultural and politico-economic history of the contributions made by the French to London. This is a timely history on a number of levels. In the

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contemporary social and economic context, the French Consulate estimates that 300-400,000 French citizens reside in London, and the South-East, making it one of the largest non-English populations in the capital.

The mains topics are: On the historical focus: the 17th century London and Huguenot legacies; the Exiles and Refugees in London and their political and socio-cultural legacies; the Cultural Production in the 19th and early 20th Centuries; the Impact of the two World Wars on French Communities in London; the Cultural and Artistic Exchanges in post-1945 London. On the contemporary focus: London as a City of socioeconomic opportunities; The French ‘communities’ in London (who and where they are); Cultural, social, political and economic contributions of the London French to the life of the British capital. The project will trace these themes across the centuries and across the spaces and places of London. I

Further contemporary manifestations of the contribution made by the French to London are: • The establishment in 2008 of the ‘Français of the Year Awards’ which celebrate the achievements of prominent French men and women in business, sport, fashion and gastronomy. • The launch in 2010 of Cinémoi, the UK’s only dedicated French film channel. • The recent launch of French Radio London. • The launch 11 years ago of the ‘Franco-British Business Awards’ co-organised by the French Chamber of Commerce in Great Britain and the Franco-British Chamber in France recognising the expertise and success of French and British companies on both sides of the Channel.

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Mayor announces world-class consortium to construct London’s cable car ||| The Mayor of London, Boris Johnson, has confirmed work will start this summer on a cable car across the Thames helping to boost the on-going regeneration of East London. This follows the appointment of a world-class consortium to build and operate the cable car with Mace as lead contractor. The cable car will span the Thames, providing a low-emission, quick, direct and fully accessible link connecting the Greenwich Peninsula and the O2 with the Royal Victoria Docks and the ExCeL. It will provide a spectacular architectural addition to London and a much needed river crossing in this area, cutting travel times to five minutes. This supports the Mayor’s vision to transform this area into a new metropolitan quarter boasting new businesses, tourist attractions, homes and job opportunities. Work will start this summer on what is set to be the first urban system of its kind in the UK. Transport for London is striving to deliver the scheme before

the London Olympic and Paralympic Games although this remains an extremely challenging timeline for such a complex project. “Gliding serenely through the air across the Thames will provide a truly sublime, bird’s eye view of our wonderful city” said Boris Johnson. TfL also announced today the start of a competitive process for commercial partners who want to invest in the scheme in return for the rights to associated commercial sponsorship opportunities, including naming rights and branding options. The commercial programme will be a key component of a funding package for the cable car which will also include third party grants and surplus fare revenue. It will also provide a full and transparent process. The winning bidder is expected to be announced later this year. In the interim, to aid the quick delivery of this important new transport link TfL will provide upfront funding for the cable car. I

Schematic of the proposed cable car

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Companies The following Company News section covers activities and events of Chamber members. It provides up-todate information and coverage, with the intention of promoting their know-how and achievements.

Eurostar launches guaranteed boarding for its Business Premier customers ||| Eurostar has launched at the beginning of May a guaranteed boarding service for its flagship Business Premier class. The Eurostar Business Premier ‘Boarding Guarantee’, will exclusively offer Business Premier passengers guaranteed access to the train of their choice regardless of their reservation. This means business customers can feel confident that if they arrive late or even early for their train they will be able to board another service, without having to join a stand-by queue. The ‘Boarding Guarantee’ is available at Eurostar stations on the same day of travel as the original booking. Wherever possible, customers will be accommodated in Business Premier coaches and where

this is not possible, travel will still be guaranteed in either Standard Premier or Standard class. I

Eurotunnel Group revenues grow almost a quarter ||| The Eurotunnel Group recorded growth in its revenues for the first quarter of 2011 driven by an increase in its core activity, the transport of trucks and passenger vehicles on board its Shuttles, which grew by 14 percent to €81.7 million compared to the same period in the previous year. Total revenues for the Eurotunnel Group for the first quarter of 2011 have increased to €179.2 million, a growth of 24 percent compared to 2010. Revenues arising from the use of the railway network by Eurostar passenger trains and train operators’ rail freight services rose to €59.9 million and also grew, by 5 percent during the first quarter. “Eurotunnel has made excellent progress in all its strategic activities as a result of its long term strengths: customer service and protection of the environment, whilst the ferries which use bunker fuel have to apply fuel surcharges. Our rail freight business is developing as planned through the efforts of the dynamic teams at Great Britain Rail Freight (GBRf) in the UK and Europorte in France” commented Jacques Gounon, Chairman and Chief Executive Officer of the Eurotunnel Group. I

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Cofely, a GDF SUEZ company, delivers low carbon district energy across Leicester ||| Cofely has signed a 25 year contract with Leicester City Council (LCC) to link and extend four existing district heating schemes across the City of Leicester. The work will be delivered through a new subsidiary company – Leicester District Energy Company – with an investment of £14m by Cofely and additional funding from the Community Energy Saving Programme (CESP)1. The project will realise a long-held ambition of LCC to optimise the performance of its existing district heating schemes and will also significantly broaden the use of low carbon heating within Leicester. The low carbon energy schemes are due to go live during 2012, serving 3,000 dwellings across six housing

estates, as well as 15 civic buildings, through 7km of insulated pipework. When all of the first phases are delivered (including the City Council, the University and the Penitentiary centre), the scheme will use a combination of over 5 MW of low carbon gas-fired combined heat & power (CHP) and biomass boilers to achieve CO2 emissions savings of 12,000 tonnes per annum. A second phase of the project will extend the scheme to include HMP Leicester and the University of Leicester. Cofely will assume operational responsibility for the existing schemes in late spring 2011. I 1 Community Energy Saving Programme targets households across the UK, in areas of low income, to improve energy efficiency standards, and reduce fuel bills. The programme is delivered through the development of community-based partnerships between Local Authorities (LAs), community groups and energy companies.

Peugeot nabs patent accolade again ||| For the fourth year in a row PSA Peugeot Citroën has been recognised as France’s leading patent applicant. The company released 1,152 patents in 2010. Innovations included hill assist devices, grip control traction for slippery surfaces, and windshield head-up vision displays of speedometers. In addition PSA, the second largest car maker based in Europe and sixth

throughout the world, introduced the novel “stop and start” system shutdown to reduce CO2 emissions. Plus it patented new features to protect pedestrians and improve emergency braking systems. • Sales of Peugeot cars rose by 8.8 percent in March 2011 compared to a year earlier, while Citroën sales climbed 19.2 percent over the same period. I

Recommended offer by KSE for Arsenal Holdings Wenger whom he has stated is a wonderful manager. KSE has also stated that the offer will not be funded by debt finance secured against the Club. The Independent Directors of Arsenal comprising of Mr Hill-Wood, Ivan Gazidis, Ken Friar, Sir Chips Keswick and Lord Harris of Peckham have considered these confirmations as well as the offer price and, having received advice from an independent adviser, Rothschild, are recommending that shareholders accept the offer. I

||| As part of the offer KSE, which is a company owned by existing Arsenal Director Stan Kroenke, has committed to continue to operate the Club in line with our existing self-sustaining business model. Mr Kroenke has a proven track record of successful long-term investment in sport and has confirmed that he has asked the existing Board to remain in place. This includes Mr Peter Hill-Wood as Chairman. Mr Kroenke is also fully supportive of Manager Arsène

The Emirates Stadium

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EDF Energy signs 2 partnerships with London Landmarks: The London Eye and Tower Bridge ||| On the 25th of January, before sunrise, the iconic EDF Energy London Eye cast a brilliant light across London to symbolise a low carbon vision for the Capital and beyond. It marked the launch of EDF Energy’s threeyear sponsorship with Merlin Entertainment’s iconic attraction - the London Eye. This symbolic sunrise aims to help Britons to take action against climate change and sign up to Team Green Britain (teamgreenbritain.org), a growing group of people, schools and communities engaged in tackling climate change. Joining the team is TV personality Myleene Klass who has pledged to start living a more sustainable lifestyle and support EDF Energy’s low carbon vision for London. As well as using its expertise as Britain’s largest producer of low carbon electricity to help Merlin reduce the London Eye’s overall carbon footprint, EDF Energy will guarantee that every single unit of energy used by the EDF Energy London Eye is matched with energy generated from low carbon sources. On the 21 April, the Mayor of London has also announced a deal between City Hall, City of London Corporation, EDF and GE to install a state-of-the-art energy-efficient lighting system on Tower Bridge. As

TV Personality • Myleene Klass

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well as helping to cut carbon and reduce energy costs, the project will enhance this global icon’s architectural features at night. If given planning permission, this will deliver LEDs and flexible lighting and a new cabling system to complement the bridge’s features - such as its gothic turrets, central aerial walkway and suspension chains - in colours sensitive to its listed building status. The lighting system will be flexible, allowing for both varying colours and intensity of light, enabling Tower Bridge to respond to special events in a unique and spectacular manner. The project must now obtain the necessary planning permissions but if successful, work could start by September and be completed by spring 2012, in time for the Olympic and Paralympic Games. Commercial agreements have now been signed between all relevant parties and a detailed planning application is being drawn-up. Vincent de Rivaz, Chief Executive at EDF Energy said “As Britain’s largest producer of low carbon electricity, EDF Energy is leading the energy change. We are working with Government, transport providers, attractions, business and institutions to help create a city, and country that’s more sustainable and enjoyable for visitors and residents alike. I

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Saint-Gobain central to MediaCityUK

The new MediaCityUK development is set to house key departments of the BBC

||| Overlooking The Lowry and Imperial War Museum on the banks of the Manchester Ship Canal, the landmark MediaCityUK development is Europe’s biggest dedicated media centre. It is set to become the new home for the BBC in the North following a decision to relocate key London-based departments, including BBC Sport, BBC Children’s and Radio 5 Live to the site in 2011. The new facility will house TV and radio studios, a five storey office building and a mix of commercial and residential areas. As part of the multi-million pound

project, a number of Saint-Gobain companies were able to provide systems to meet acoustic high standards. SaintGobain PAM supplied its Ensign above ground drainage system. Used throughout the MediaCityUK complex, this consists of lightweight cast-iron socket-less pipes and fittings in 50 to 600mm diameters which are connected by a unique, two-piece ductile-iron coupling. The system was chosen for the project as it is the quietest above ground drainage system available on the market. I

Pernod Ricard hopes the spirit is willing… ||| French drinks giant Pernod Ricard has bold plans for UK tipplers to sip more premium spirits. To that end it has launched its “Premium Edge” initiative. Aimed at both the on-and-off trade and operating on both sides of the Channel, the campaign offers special displays, limited edition packs and educational material to retailers who seek higher margins during parched times. In the British context premium implies bottles worth £13 or more. Currently premium consumption makes up 31 percent of the spirits market in Britain

compared to 46 percent in the USA. To reach that Stateside target the company will stress attributes of heritage, quality, exclusivity and style. Tastes differ, however, depending on whether you are standing in a pub or shopping for a special occasion in an off-licence. According to market research, bartenders favour pushing premium scotch whereas consumers prefer to spend more for pricier vodkas. Pernod Ricard owns such legendary brands as Chivas Regal cognac, Absolut vodka, The Glenlivet whisky and Beefeater gin. I

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Renault - rolling out new electric vehicle range ||| 100 years ago, electric vehicles (EVs) were a common sight in the streets of Europe and the USA. In fact, their reasonable cost and the absence of unpleasant smells, noise, and most importantly the need to hand crank, made them perfect city cars and delivery vans. This was until mass production methods and the invention of the electric starter brought about the internal combustion engine-dominated (ICE) world that we know today. After decades, which saw EVs confined to golf buggies and milk floats, they came back onto the scene when General Motors built and trialled its EV1 in the mid 1990s. The 2006 documentary film ‘Who killed the Electric Car’ narrates its short but busy life. It seemed that EVs’ time was yet to come, but in the last few years, we have seen a major increase in interest.

Main Breakthrough So, why are EVs now returning to the market? The main breakthrough is probably the development of LithiumIon batteries, which are already widely used in laptops and mobile phones. And the reason for this is what

Source charging stations will give a full charge in 6-8 hours

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is known as ‘energy density’ or the capacity to store energy relative to the weight of the battery (measured in kWh/kg) which is vastly superior to conventional Nickel-Cadmium or Lead-Acid batteries, allowing range over 100 miles (160km). A range of 100 miles is not a limitation that we have traditionally experienced, and it gives rise to the socalled ‘range anxiety’. It is clear that EVs will not suit every usage profile, but data proves their relevance: 32 percent of Clio-sized cars will never make journeys longer than 150km1 and 90 percent of car journeys in London are less than 10 miles2. Delivery vans and commuters are obvious targets, and early field trials show that drivers quickly overcome their anxiety, as they become accustomed to specificities of an EV, and start enjoying the inimitable driving experience. A firm belief in the relevance and mass-market affordability of EV’s is the foundation of Renault-Nissan Alliance’s strategy to offer ‘pure’ electric vehicles rather than hybrid vehicles, which while negating the range issue, are inherently more expensive . Many of the major car manufacturers now plan to sell mass-market electric vehicles, all with similar quality and performance as a conventional vehicle. Mitsubishi, Citroen, Peugeot and Nissan are already offering cars in the UK, with BMW, Ford and Volkswagen likely to launch products in the next couple of years. Even established hybrid manufacturers Toyota and Honda have developed EV-versions of their products. All manufacturers are forecasting significant growth in the EV sector, with Renault amongst the most bullish, projecting that they will take about 10 percent of the market by 2020. Even if it seems a bold figure, this is still not enough to reach the target of 1.7 million vehicles on the road by 2020 set by the Committee on Climate Change (CCC) in order to meet the UK’s carbon-reduction targets.

Significant developments EVs allow significant CO2 savings, even when taking into account the emissions from electricity production: typically 40 percent less than the equivalent diesel model. The growing pressure to decarbonise electricity means bigger future savings: the target of 300g/kWh (again, set by the CCC) in 2020 translates into 42g/km, well below what will be achievable by combustion engines. However, there are more than just CO2 reductions to consider - EVs also offer significant improvements in noise and air pollution, at a time where cities and states struggle to meet European targets on nitrogen oxide levels and risk heavy fines.

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DON’T bE THE LAST TO CHANGE wITH THE TIMES. available in 2012

available in 2012

available in 2011

available in 2012

RENAULT’S ELECTRIC VEHICLE RANGE. REGISTER YOUR INTEREST IN THE FUTURE AT RENAULT-ZE.COM

Zero emissions in use. The production of electricity in the UK generally produces CO 2 .

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The new electric vehicle range from Renault. (L to R) Twizy • ZOE • Fluence Z.E. & Kangoo Van Z.E.

Whereas most manufacturers are still offering one EV model, Renault are diving in with both feet and launching four vehicles in the space of 12 months. First comes Kangoo Van Z.E. in November; followed by Twizy, a striking two-seater city car, in the first Quarter of 2012. Later in 2012 Renault will launch Fluence Z.E., a saloon family car, before what is expected to be the best-selling model, a 5-door super-mini (B-segment hatch) named ZOE. With its partner Nissan looking to introduce further products following the launch of Leaf, already European Car of the Year 2011, the RenaultNissan Alliance clearly aims at being the leader of the fast-growing EV market. Affordability is essential for EVs to move from niche to mass market. The UK government has recognised this issue with the introduction this January of the Plugged-in Car Grant (PiCG), a consumer incentive of 25 percent of the purchase cost, up to £5,000. The PiCG is available, subject to certain safety and performance criteria, for cars, but vans and quadricycles such as Twizy are excluded. Even taking into account this welcome help, the upfront cost of an EV can still be a barrier, with a typical net price of £25,000. Renault has addressed this through an innovative battery rental scheme, starting at around £70 per month and consequently the car is priced inline with its conventional counterpart. Whether you pay upfront or rent the battery the additional cost of an

EV is balanced by savings on maintenance, congestion charge and crucially by the very low running costs: under 3p per mile, typically a quarter the cost of diesel, and the gap is likely to widen further. Charging may be a concern, but manufacturers’ agree that most charging is expected to take place at home. The safest and most efficient solution is to use a Wall-box, allowing a full standard charge in 6 to 8 hours, preferably overnight when electricity is plentiful and often cheaper. Public infrastructure retains a key role, especially as not everyone enjoys off-street parking. Employers, retailers and local authorities have already started to install charging points, including ‘fast charge’ points allowing 80 percent of full charge in 20 minutes. The government has committed £30m funding in 8 key regions to support this infrastructure roll-out through their Plugged-in-Places scheme, initially in London, the North East and Milton Keynes, with a second wave comprising the Midlands, Greater Manchester, East of England, Scotland and Northern Ireland announced in December 2010. Electric vehicles now have a level of range and performance suitable for a significant proportion of road users. They make sense economically and environmentally by reducing CO2 emissions and improving air quality. Above all, they are now a reality on the UK’s roads: this is why 2011 could well be the beginning of a new chapter for the motor industry. For more information on Renault’s forthcoming range of Electric Vehicles and to register your interest, please visit renault-ze.com Renault is showcasing 22 vehicles at this year’s Company Car in Action - Millbrook (28-29 June 2011), including the first manufacturer built electric LCV, New Kangoo Van Z.E. and Fluence Z.E., the electric 4door family saloon. To register for this exciting event, please visit renaultbusiness.co.uk/fleet-events I Andy Heiron, Head of Electric Vehicle Programme, Renault UK. 1

Save on Congestion Charging by driving an EV

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Source: Renault research (Europe) / 2Source TfL

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Capgemini makes two acquisitions in France in high growth markets ||| These moves will reinforce the Group’s positioning on two particularly dynamic markets in France, and will contribute significantly to its growth program. Capgemini will acquire a 100% stake in Artesys and Avantias. These acquisitions amount to a combined total of €40 million and will be financed by the Group’s net cash. Artesys is one of the leaders in France in the conception of IT infrastructure solutions. Avantias specialises in the implementation of ECM (Enterprise Content Management).

Paul Hermelin, Chief Executive Officer of the Capgemini Group commented “It is important that we invest in the French market, which represents more than 22 percent of Group revenues, and which is gradually seeing a return to growth. Our ambition is particularly to become a global player in cloud computing on the French market. We are also planning on recruiting over 4,500 new hires in France this year, which will contribute to the Group’s growth in what is one of its more traditional markets”. I

Thales wins Queen’s Awards for Enterprise ||| Thales UK is proud to announce that Her Majesty The Queen has conferred on April 21, two of its business units with the Queens Award for Enterprise. The awards are in the International Trade category and are being conferred on Thales UK’s optronics business and its missile electronics business. Thales UK’s optronics business designs and manufactures electro-optic day and night-vision equipment for use in land, sea and airborne applications. Thales UK’s missile electronics business designs

and manufactures target detection devices, fuses and safety arming units, which are installed in a range of missiles. With origins tracing back to the First World War, the business has risen to being a recognised world leader in its areas of operations. Both parts of the business have been selected for the award for more than doubling their overseas revenues over the last three years. I Last year, Thales won the Jury’s special Award at the Franco-British Business Awards (FBBA) ceremony that was organised by the French Chamber of Commerce in Great Britain in partnership with the Franco-British Chamber of Commerce & Industry in France. This year the FBBA will take place in Paris in November.

Triple hat-trick for Alstom ||| Three contracts in early April gave the French energy and transport group Alstom considerable cheer. First it won a €650m contract to provide equipment for a coal plant in Malaysia, as part of a consortium with China Machinery Import and Export Corporation. Alstom also received orders for trams from Systral, the main transport syndicate for the Rhône and Lyon region. The contract could be worth up to €58m once completed in autumn 2012. Lastly the firm won a €27m contract with the region “Pays de la Loire” for eight trams that will link Nantes and Chateaubriand by 2014. In the third quarter of 2010-11 Alstom saw orders in its energy sector grow by 6.9 percent over the previous quarter, and by 4.1 percent in its transportation division.

Total orders for Q3 thus stood at $4.4bn, which spelt encouraging news after the firm lost out to Siemens on a deal to provide rolling stock for Eurostar last October. I

The pink Citadis tram in Reims, manufactured by Alstom

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Ligne Roset unveils its new collections at The National Theatre

Ligne Roset’s new collection featuring the “Ploum“ sofa

||| The 5th May 2011 saw Ligne Roset launch their new collections of modern furniture at the National Theatre on London’s South Bank. More than a hundred guests attended the event which took place on “The Deck” at the theatre, where the company has already furnished and decorated the VIP Lounge with its distinctive and forward thinking style. Those present on the night made up a spectrum from the architecture, hotel and design industries; among them were Michel Roset, Creative Director of Ligne Roset and Bruno Allard, Ligne Roset’s UK Director, along with Matt Turner, editor of “Sleeper” magazine.

Pernod Ricard kindly supplied the cocktails, and these were all made using varieties of Absolut Vodka (Absolut Expresso Martini, Absolut Long Cosmopolitan and Absolut Pears & Elderflower Fizz). Among the products on display at this year’s event were Inga Sempé’s “Ruché” bed, and the highly contemporary, organic form of the “Ploum” sofa by 2011’s Red Dot award winning designers Ronan and Erwan Bouroullec, an item of furniture that the brothers liken to a “ripe, voluptuous piece of fruit”. Both these products are part of the Ligne Roset’s new 2011 collection, which was launched to acclaim at Maison et Objet in Paris earlier this year. I

||| Nespresso achieved sales of more than £2 billion and organic growth above 20 percent in 2010. The booming portioned coffee segment continued to grow, while still representing only 8 percent of the total coffee market in terms of volume. In the face of a burgeoning competitive landscape, Nespresso maintained its double-digit growth trend. Additionally, Nespresso continues to grow its leading market share in coffee machines (including filter and pad coffee machines) to about 20 percent. The number of Nespresso Club Members grew by over 35 percent to 10 million. To maintain its personalised services, the number of Nespresso employees increased by nearly 30 percent to 5,500. More than 70 percent of the teams in Nespresso’s markets are customer facing. In 2010, the

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Nespresso: Continuing leadership through passion for quality

Nespresso lead the way in coffee machines

company opened 36 new boutiques – from Munich to Miami and from Shanghai to Sydney – bringing the total number of boutiques in its global retail network to 215. I

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Hermès launches its first ever furniture range in Milan

Hermès launches its new furniture range

||| Hermès and Dedar, the Italian textile firm, are pleased to announce the creation of a joint subsidiary, Faubourg Italia, specialising in the production and distribution of furnishing fabrics and wallpapers. This partnership fuses the experience and know-how of Dedar with the richness of the Hermès creative universe, on a foundation of values cherished by both houses: the constant quest for excellence and a strong family spirit. The collections designed under Hermès’ artistic direction are now available from selected Hermès stores. Hermès has unveiled its new furniture line at the Milan’s International Furniture Show (Salone dei Mobili) which took place from 12 to 17 April. The company has thrown open its doors and invited the designers Enzo Mari, Antonio Citterio and the RDAI studio (Rena Dumas Architecture Intérieure) to chart a new page in its history in the domain of furniture. “These collections are an opportunity to demonstrate a contemporary expression of Hermès,

faithful to its craftsman spirit and imbued with values of functionality and comfort” says Pierre-Alexis Dumas, artistic director of Hermès. Among these creations are collections of carpets, furnishing fabrics and wallpapers. Today Hermès puts Delahaye_Ad_82_62 19/1/09 1 I its signature to a complete world17:13 for thePage home.

Worldwide and local removals, relocations & storage. Serving the French community in London for over 30 years. +44 20 8687 0400 info@delahayemoving.com

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The Dorchester celebrates its 80th anniversary

Alain Ducasse at The Dorchester

The Dorchester celebrates its 80th anniversary

||| The term “legacy” acquired a double meaning this April when The Dorchester celebrated its first 80 years as a London landmark. Looking back to past glory, the hotel revived an exclusive commemorative cocktail, last tasted 60 years ago. Looking forward to a greener tomorrow, The Dorchester will plant 80 trees – one for each of its illustrious years. The first 15 will soon form The Dorchester Anniversary Walk in Mayfair and St. James’s; another 65 will appear across London in areas to be chosen by the community-led charity Trees for Cities (TfC) and

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Westminster Council. As the hotel’s general manager Roland Fasel remarked: ‘We are creating 80 living monuments to be enjoyed far into the future.’ ‘Trees deliver a range of benefits to improve quality of life’, added Mayor of London Boris Johnson, ‘[so] this fantastic commemoration will leave a wonderfully leafy legacy for generations’. It should also boost Johnson’s plan to grace London’s streets with 10,000 new trees by 2012. A majestic Plane outside The Dorchester’s entrance was named one of the Great Trees of London in 1997. Over eight decades it has witnessed the hotel’s 1931 launch event for “aristocrats and industrialists, ambassadors and statesmen, pleasure-seekers and the Beautiful People”, Prince Philip’s stag party 16 years later, the Beatles’ Variety Club award in 1964, and numerous stay-overs by film-stars and world leaders. The Dorchester’s green award-winning Corporate Responsibility team came up with the tree-planting idea. Commented Sharon Johnson, CEO of TfC: ‘The gift of 80 long-living, large canopy trees will provide clean air and enhance the London cityscape for hundreds of years to come.’ Besides reviving Harry Cradock’s inimitable ‘Dorchester of London’ cocktail, made with a still-mysterious ‘Forbidden Fruit’ liquor, the hotel will this year renovate its ballroom, and sumptuous suites representing the acme of classical English elegance. Constant renewal seems key to the Dorchester concept. In 2006 it refurbished its bar; in 2007 it opened the three Michelin starred Alain Ducasse French restaurant and added three modern roof suites; and in 2009 it transformed its Art Deco spa. The Mayfair flagship heads a Dorchester Collection of outstanding international hotels. Now its reputation should blossom yet further with its innovative ecological contribution. I

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St Pancras Renaissance London celebrates its grand opening with a star-studded party ||| The eagerly anticipated St Pancras Renaissance Hotel London’s grand opening took place on 5 May, 138 years to the day after the original Midland Grand Hotel opened its doors in 1873. Some of the celebrities who drank Laurent Perrier Champagne on the Grand Staircase and nibbled from macaroon trees in the hotel’s grand lobby included Adrien Brody (pictured) and Sophie Ellis Bextor. Nearly 1,500 guests enjoyed the hotel in all its glory, drinking Victorian-inspired cocktails and enjoying canapés including Haggis bonbons with Whisky sauce or Colston Basset stilton doughnuts with smoked chilli jelly. Having been lovingly and masterfully restored to once again become one of London’s most iconic hotels, the spectacular seven year, £150 million transformation by the hotel’s owner, Manhattan Loft Corporation, was officially revealed. The event showcased the very best of Sir George Gilbert Scott’s historic masterpiece, including areas of particular historical importance that have been carefully renovated. These include the ‘Ladies Smoking Room’, the first place in Europe where women could smoke publicly, the Booking Office, now a glamorous bar and restaurant, and the famous grand staircase, widely revered as the most majestic in England and host to the Spice Girls ‘Wannabe’ video. I

The facade of the St Pancras Renaissance Hotel

The Chamber, present at the event, wishes a bright future to the St Pancras Renaissance Hotel London and congratulates their team, particularly, Kevin Kelly, General Manager and Ed White, Director of Sales and Marketing for organising such a fantastic event. Actor Adrien Brody was one of the many stars that graced the grand opening of the St Pancras Renaissance

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news

Launch of Inès de la Fressange’s style guide « Parisian Chic » at the London Roger Vivier boutique on 5 April

(L to R) Jeanne Marine • Ines de la Fressange • Bob Geldolf

Ines de la Fressange and Sophie Gachet

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||| Sophie Charbonneau, manager of the Roger Vivier boutique in Knightsbridge and very active member of the French Chamber, hosted the launch party of supermodel and businesswoman Inès de la Fressange’s style guide, Parisian Chic, co-authored with Sophie Gachet, a fashion journalist for Paris Elle, on 5th April. Inès de la Fressange started working in the fashion world as a runway model in the late 1970s; she became Karl Lagerfeld’s muse and the face of Chanel during the 1980s, posed as the Marianne face of France and launched a clothing line in the 1990s. Today she is a wife, the mother of two daughters, and a creative consultant with Roger Vivier shoes. The guests at the launch showed a very positive reaction to the book with over 110 copies sold and signed during the evening. Among the guests at the glamorous event were French actress Jeanne Marine and the singer Bob Geldof, along with designer Allegra Hicks and Priscilla Waters. The interior of the shop was decorated to evoke a French atmosphere with miniature Eiffel Towers and the colouring of the Tricolore throughout. The chairs were borrowed from Café Rouge which has embodied French style since its opening in 1989. Parisians are renowned for their sense of chic, not only in fashion but in lifestyle, and who better to define that approach than Inès de la Fressange? It would seem that the French have style in their DNA! So here, in this handy red, flexi-bound volume, are all the tips that any woman, of any age, will need to keep a bit of that je ne sais quoi in her life. Inès de la Fressange tells readers that ‘a smile’ is the best accessory a woman can have and provides 16 points on what to wear for every occasion, along with a superb guide of fashion faux pas aimed at the over-50s. But not only does Inès de la Fressange reveal ‘how’ to do things, she also tells ‘where’, with her own ‘black book’ of fashion and decorating finds; at the end of each section there is a dream directory of shops to visit and information on hotels, restaurants and venues for family-based activities. She also provides an outstanding array of shopping websites for the reader to visit covering both the home and fashions. Inès de la Fressange’s guide is vibrant and essential and exudes that quintessential Parisian chic that all readers will undoubtedly find irresistible. I

news

hello, goodbye...

he French Chamber of Commerce would like to welcome the new representatives of existing member companies. We would also like to express our gratitude to members who have made outstanding contributions to the Chamber, but who are now moving on to different destinations. We wish them all the best in their new posts.

Ariel Eckstein, new Managing Director of LinkedIn EMEA ||| The main contact of the Chamber, Guillame Larronde-Larretche has now returned to Paris where LinkedIn has opened a new office offering local support to the growing number of French companies using the companyâ&#x20AC;&#x2122;s recruitment and marketing solutions. Ariel Eckstein is the newly appointed London based Managing Director of LinkedIn EMEA. I

Guillame LarrondeLarretche

Ariel Eckstein

Ici Londres appoints new Manager ||| Rachel Benessiano is taking up the role of Manager of Ici Londres Magazine, replacing Emilie Coulette who is leaving the UK for new opportunities. Rachel has been with Ici Londres for 2 years and before becoming Manager she was Sales and Marketing Executive. I

Emilie Coulette

Rachel Benessiano

info - june / july 2011 - 35

news

legal

The race is on towards private sector-led economic growth Business angels and private capital are government’s choice to give the UK economy a tonic

task was tricky: delivering a fiscally neutral budget, under the backdrop of downgraded growth forecasts and rising inflation. The result was a “pro-enterprise” budget aimed at stimulating the economy through a series of measures providing wide-ranging benefits for small businesses, entrepreneurs and angel investors. The British government is now very clear in its intentions to foster direct financing from individuals (angel investors) in SMEs. A notable measure was the extension of tax relief available to business angels through the so-called Enterprise Investment Scheme (EIS) in operation since 1994. Since 5 April 2011, angel investors in SMEs can now claim 30 percent income tax relief (previously 20 percent) on investments in EIS-qualifying companies, of up to £1m p.a. per person (previously £500,000). As such, angel investors can now claim income tax relief in any one year of up to £300,000 p.a. (previously £100,000). Furthermore, if the company succeeds and the shares are ultimately sold, angel investors will enjoy a tax free gain (vs. up to 28 percent on other equity investments). Any capital loss incurred by investors on their principal may be offset against income (less the income tax relief received). Overall, for a 50 percent taxpayer, the improved scheme significantly “de-risks” angel investments in SMEs, reducing the maximum potential loss to 35 percent of invested capital. In addition, the size limit on companies eligible for EIS will be increased, from 50 to 250 employees and from £7m to £15m in gross assets. SMEs will also enjoy other measures announced in the new Budget which include a reduction in corporate tax to 23 percent by 2014-15, giving the UK the lowest rate in the G7 (assuming no reduction in other countries): 16 percent less than the US, 11 percent less than France and 7 percent less than Germany. Financing should also be easier further down the ‘development chain’ with the 3 April 2011 launch of the Business Growth Fund (BGF) by Britain’s top six banks (Barclays, HSBC, Lloyds, RBS, Santander

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||| On 23 March 2011, Chancellor George Osborne’s

Chancellor of the Exchequer • George Osborne

and Standard Chartered). Chaired by Sir Nigel Rudd, the £2.5bn fund will invest exclusively long-term growth capital (£2m to £10m per investment) in SMEs. Start up culture is also becoming more socially attractive in Britain. Entrepreneurship and innovation are being widely promoted with clear intentions for East London to become the “Silicon Valley of Europe”. The Start-Up Britain campaign was launched less than a week following the new Budget and is a rapid response from the private sector to the Government’s call for an “enterprise-led” recovery. Fully supported by the coalition government, it has so far gathered the support of 60 leading brands (including Barclays, BlackBerry, Microsoft, McKinsey & Co. and Virgin Media). Positive side effects of the financial crisis are now emerging, including a drastic change in mentality towards entrepreneurship. It is now easier than ever for UK-based SMEs to raise “smart money” from investors. Combined with a general tax-friendly environment and a reduction in red tape, these measures will undoubtedly incentivise problem solving through innovation and a “create-your-own-job” answer to unemployment. I Nathan Boublil, Associate at Entrepreneurs Partners LLP, a Venture Capital syndicate

news

uk regional review

||| Scotland is gearing up for its own set of Games, albeit not something on the magnitude of the Olympic Games. So BusinessClub Scotland has been set up to help Scotland’s businesses capitalise on the opportunities generated by major events in Scotland, both in the run up to the Glasgow 2014 Commonwealth Games and beyond. The Club facilitates contract opportunities, business networking and business engagement around major sporting and cultural events in Scotland. BusinessClub Scotland is supported by the Scottish Government, the country’s leading business organisations and works closely with EventScotland and Scottish Enterprise. The club is open to all Scottish companies. I

Scotland gears up for the Glasgow 2014 Commonwealth Games

Rt Hon Alex Salmond MSP launches the Commonwealth Games at the People’s Palace

French firm makes waves in Northern Ireland ||| A Northern Ireland firm making pump and plumbing products for caravans, boats and the healthcare industry, will supply BJ Technologie - a global sail boat manufacturer - with bilge and shower

waste pump systems. Whale Pumps which is based in Bangor, said it had previously acted as a ‘tier two’ supplier to BJ Technologie, whose brands include Beneteau, Jeanneau and CNB, before the latest deal was won. I

Welsh put their faith in savings

The Welsh lead the way when it comes to money

||| Opportunities for financial services companies in Wales, perhaps? At least that is the conclusion of a piece of recent research by London stock brokers, Brewin Dolphin, who say that the Welsh are particularly savvy with their money and investing. It shows that almost half (49 percent) of adults in Wales are set to continue current savings levels or increase their saving in 2011. 74 percent of people have savings and investment products, with 58 percent having savings accounts, 42 percent with pensions and 46 percent with ISAs. 24 percent of respondents have investments in the stock market or funds. I

info - june / july 2011 - 37

success story

Luxury foods company takes a (tea) leaf out of history Businessmen like to capture the next market trend, rather than revive past ones. Yet the entrepreneurs who have created the East India Company, four hundred years after its launch, argue that the name still has enduring brand value. Here Arjan Overwater, CEO of The East India Company Fine Foods business worldwide, describes the business recipe for success

he East India Company, as it is known today, dates The story of the name imbues the entire project. back to 2005. That was the year when an Indian The East India Company was formed by Royal Charter born businessman called Sanjiv Mehta bought the name, of Queen Elizabeth I in 1600 and given the full title of the identity, the coat-of-arms and the trade mark from ‘Governor and Company of Merchants of London Trading a group of high-profile British businessmen. Mehta into the East Indies’. It enjoyed hundreds of years of re-launched the East India Company as monopoly over the trade, export and import a luxury food and goods provider. Mehta of goods from Asia and unprecedented levels and his colleague Arjan Overwater then of power and influence in its operations; The East India set about creating a luxury food products boasting its own fleet, armies and currency. retailer and distributor, with the degree of Company shop The company’s fascinating story ultimately style and story that few can emulate. Today embodies the came to a close after the Indian rebellion luxury as much as it is the perfect example of how history of 1857. the history. It is can transform and embellish a brand. Mr Overwater says, “the East India The company has one dedicated outlet extremely elegant, Company was, in its time, the greatest in London and a distribution to upmarket detailed and well trading power of its day. And in modern department stores including Mitsukoshi, conceived times, we have similar companies Selfridges and Harrods (summer 2011). dominating a sector, such as Microsoft or With further planned expansions to the Google do in IT. It obviously represents a franchise currently under development certain impact and power”. internationally, the company hopes that the brand’s The East India Company shop embodies the interest will allow them to sell, not just a product, luxury as much as the history. It is extremely elegant, but also a whole experience. Mehta says, “the project detailed and well conceived; Overwater notes that was not simply a commercial venture – there was an the qualities of the retail space were to be crucial emotional connection too. Today there is no single in bringing the “total consumer experience and brand name from the East that can stand alongside credibility of the company” to the customers who some of the top luxury names. The East India Company come through its doors. Similarly, extremely high has that ability.” standards of production are on display throughout

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The original East India Company traded mainly in cotton, silk, indigo dye, saltpetre, tea, and opium

the store, with its luxurious branding and packaging, the highly original and often pleasingly esoteric recipes developed by the Company themselves and the opulence of the selection at hand. Tea accounts for about 30 percent of sales at the moment, they sell the old favourite staple teas of course, but they also stock a large and exotic selection of over 100 other kinds, all stored in an impressive and ornate ‘tea library’, and often blended to the company’s own specifications. This library will become fully computerised so that customers can easily automate an order to their own specifications. Apart from tea, the shop also specialises in mustards, cordials, chocolate, pickles and chutney and coffee, all presented with the same painstaking attention to detail.

Rediscovery of forgotten flavours A preoccupation with the rediscovery of more forgotten flavours drives product development. “We are constantly pursuing a celebration of taste, an exploration of taste, and the different excitements that could come from that. So we do a lot of tasting in store” says Overwater The prominent use in the products of certain flavours that perhaps might seem archaic,

such as jasmine, poppy or lavender for example, are indicative of the way in which the company is trying to induce a feeling of an authentic connection with the past whilst at the same time staying contemporary in its outlook; Overwater finds this particular interesting as “young people are rediscovering the categories of flavour. When we do tastings here, we will mix these flavours with tea or maybe a hint of vodka. So we can do modern things with an old staple.” The branding and distinctly British experience singles The East India Company out from the pack. This is the British heritage link to its trading past.

30%

of sales for the company are currently down to tea

As Mehta himself says, “On a rational plane, when I bought the company I saw gold at the end of the rainbow. But, at an emotional level as an Indian, when you think with your heart as I do, I had this huge feeling of redemption - this indescribable feeling of owning a company that once owned us.” I N.K.

info - june / july 2011 - 39

focus

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focus

Real Estate: Foreign money keeps London market bubbling

rices and rents for property in London’s prime locations are booming in both the residential and commercial property markets. The rate of growth in prices for houses, flats and offices in choice areas of the Capital is staying well ahead of the rest of the country. This anomaly is substantially due to the wall of money entering the UK from overseas, including many Middle Eastern and Russian buyers looking for a secure, safe and attractive investment and bolthole. That is London’s charm, and buyers speak of a strong future for Central London property markets. Paris has not been overshadowed by London’s bright lights. In fact, prices of apartments there have risen around ten percent, as recent figures from the National Association of Estate Agents (FNAIM) show. Estate agents say that French prices continue to rise. Prime locations on both sides of the Channel, is where property is most exciting! I

Focus contents The Power of London

42 London and Paris: a tale of two rising residential markets 44 In the land of the rising rent 46 The £36 billion question for property investors 48 London’s magic

Legal & Planning issues

49 Lease accounting for property: make room for change 50 Who controls the planning and construction process?

52 Legal minefield in property acquisition 53 Inventories: the key to cutting out letting disputes Case Studies

54 Changing the shape of East London 55 Overseas students fill up London’s flats 56 The French making themselves at home in London…does it show?

info - june / july 2011 - 41

focus

Part one: The Power of London

London and Paris: a tale of two rising residential markets The two cities are moving in parallel, although Paris has some way to go to catch up with London’s extraordinarily vibrant residential market. Yet Marie-Cécile Boulle of Boulle International, says that London and Paris will remain ‘two attractive long term investment centres in the world’

K property prices have risen by 410 percent between 1986 and 2006. However, London property prices historically have been rising faster than average UK property prices. At the end of the first quarter in 2011, the UK housing market was showing a mixed picture with the North/South divide continuing to widen. Prices rose in 8 out of 13 regions and in London average values increased by 2.3 percent over the first quarter compared to a 1 percent in the UK as a whole. In light of the recent economic downturn, international political turbulence and reported meltdown in property prices, it is legitimate to ask ourselves in which direction property prices are heading and whether investing in London bricks and mortar is still wise. The recent UK budget and public spending cuts are bringing more ambiguity to the economic recovery and will drive more household uncertainty. Surprisingly, in the key hotspot of London’s central areas, properties are attracting offers above the asking price within days of being put on the open market. We also note that more sales are going to sealed bids. A total of 36 percent of agents interviewed by Lonres report an increase in the past three months within central London areas. This is mainly due to a shortage of quality properties coupled with a strong influx of international buyers from India, Russia, Japan and more recently and predictably a wave of investors from the Middle East.

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The strong demand coupled with the constrained supply means that committed buyers are making stronger offers. As well as pushing up prices, this also means that the level of pricing achieved has increased to an average of 97.6 percent in Q1 2011 – this is the highest level since the peak of the market in 2007. This trend is in opposition to the national UK trend, and reinforces the resilience of London as a prime property location, with house prices expected to rise by at least 2-3 percent in 2011. In the graph it can also be seen that London’s sought-after areas have not been greatly affected in the last 10 years. In fact the trend has been upwards. It is interesting to note that across the London area as a whole, average sale prices have already risen by 5.8 percent since the end of 2010. Current ultra-luxurious developments at prestigious addresses highlight the undeniable status London has earned as the world’s real estate capital. London continues therefore to hold its global investment appeal as so much of the rest of the world experiences political and economic uncertainty.

What about Paris? The trend couldn’t be more similar. Strong demand for residential property (particularly given the limited alternative investment opportunities) is pushing up values. The performance of the residential market in Paris continues to be strong, with average sale values

focus 1. Average sales prices for All London Areas Source: Lonres

£ 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000

79 83 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 YEAR

KEY: 1 Bed House

2 Bed House

3 Bed House

increasing by 23 percent year on year in Q1 2011. The enclosed graphic of Paris depicts sales between January and March 2011. The graphic also attempts to compare the price trends in the Parisian arrondissements and their London equivalents. According to the National Association of Estate

Av sales value Av sales price

Agents (FNAIM), values of Parisian apartments in 2010 until the third quarter grew by 9.7 percent whilst the National Institute for Statistics and Economic Studies (INSEE) put growth for the period at 13.8 percent. Whichever number you take, the price of prime apartments is rising in both capital cities. I

81375/Sq Ft 112644/Sq Ft

 18e

117574/Sq Ft 153806/Sq Ft

7e Belgravia

Av sales value Av sales price

 10e

 8e

Av sales value Av sales price

 3e

16e

 7e

95939/Sq Ft 130695/Sq Ft

3e East Dulwich Av sales value Av sales price



16e

70202/Sq Ft 194755/Sq Ft

10e Islington

8e Knightsbridge, The Onslows

Av sales value Av sales price

73216/Sq Ft 98404/Sq Ft

18e Notting Hill

 17e

104378/Sq Ft 154537/Sq Ft

5+ Bed House

Av sales value Av sales price

17e Notting Hill

Av sales value Av sales price

4 Bed House

116573/Sq Ft 157045/Sq Ft

4e Mayfair



12e



Av sales value Av sales price

105572/Sq Ft 132052/Sq Ft

Av sales value Av sales price



13e

16e Chelsea, Holland Park, North & South Kensington Av sales value Av sales price 6e Belgravia

124377/Sq Ft 166808/Sq Ft

Av sales value Av sales price

72915/Sq Ft 101321/Sq Ft

12e King’s Cross 77145/Sq Ft 96380/Sq Ft

13e Camberwell

Source: databiens Note that the map is shaded by average value with dark blue being the most expensive properties to pale grey being the least expensive

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focus

In the land of the rising rent Dinner parties across London have a new hot topic. In the truly international market that is London, rentals have risen 20 percent in the past 18 months. Jemma Scott of Knight Frank notes the rise of the Accidental Landlord

he London property market is playing out like a West End production. From the boom that led to the bust of Lehman Brothers, and the crash of September 2007, to the creation of the ‘Accidental Landlord’, property is proving to be a roller-coaster ride for those with brave instincts. A total of 20 percent might at first appear to be a phenomenal increase in rent, even by London standards, yet a glance at the past 3 years reveals how rents were driven down 18.2 percent from March 2008 to March 2009, so creating a trough from which rents have risen steadily. Taking a broader view, since 2000, the average London salary has risen 43 percent, London property prices have risen an extraordinary 131 percent, whilst rents have risen 27 percent. All in all, it is still comparatively cheaper to rent in the capital than to

Lehman Brothers before the start of the property crisis

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buy. An Englishman’s home is his castle, however, and the desire to own is very different to the Parisian model where renting long term is a lifestyle choice. Instead of mortgage rates and property prices, Parisian dinner parties hum with talk of landlords’ efficiency, or lack thereof, and recent rent review negotiations. The Lehman Brothers crash heralded the global recession, and property prices in London fell for 12 consecutive months, from March 2008 to March 2009, ending 23.9 percent lower than peak. Developers had been making hay in the sunshine of the early millennium, buying properties and seeing their value rise sharply thanks to a lick of paint and an Ikea kitchen. For many first time investors, this success was fuelled by the cheap financing of 100 percent mortgages. They were simply not prepared for that fateful day in September 2007 when, suddenly, holding a large portfolio of stock brought with it the prospect of a guaranteed loss. Many of these investors became part of the ‘Accidental Landlord’ phenomenon, effectively flooding the market with new stock. Juliet Hill of Knight Frank, Knightsbridge, saw their rental listings almost triple. Contrary to expectation, the crash did not see expats return home in droves because many had made homes in London; their children were settled in school and this was a global crisis anyway. So rather than a mass exodus, downsizing became London‘s latest, and most unlikely, property trend. With stock levels high and quality tenants in demand, new rent payers were able to negotiate 20 percent (in some cases even 30 percent) rent reductions in return

focus

for long-term commitment. As long as their mortgages were covered, the accidental landlords just wanted to hold out until prices rose again, and in some cases tenants found themselves paying rent directly to the lenders who were keen to mitigate any losses. In time, however, banks understandably became less flexible. Reluctant to transfer investment into

43%

prices in prime Central London. The best properties now appeared to exceed the previous peak values. Some Accidental Landlords however were quite happy with their new- found landlord status, watching their capital growth increase. Many tenants were enjoying low rents thanks to the negotiations of Spring/Summer 2008 and in many cases those in the

131%

The average rise in London salaries since 2000

buy-to-let, the cost of mortgages effectively rose. The role of Accidental Landlord was less appealing when the higher day-to-day management expectations of quality ‘corporate’ tenants became too time-consuming for many. In March 2009, the weak pound hit its lowest rate against the dollar in years at $1.47 to £1. London was once again an attractive proposition for the international investor. The Accidental Landlords were now able to envisage selling at a decent rate, which has steadily risen, and we are currently at just 1 percent of peak

The rise in property prices since 2000

know were looking forward to a guaranteed cap on rental rises for the next 3 years. Fast forward to London 2011, recruitment (according to Morgan McKinley, a global recruitment consultant) is up 23 percent since November 2010, Central London Financial Firms Office Take-up is up 230 percent compared to 2008 and rental stock levels show four prospective tenants for every property. Within the space of four years, London has uniquely played out a boom, bust and boom. Outside London, rents have been much less buoyant, but that’s another story. I

Plenty of room for rental growth

The savvy investor would currently be well advised to purchase a portfolio of decent, well located, one bedroom executive-style flats, situated close to an underground station in the prime central area. Demand is far outstripping supply for this type of property and rents are increasing rapidly with yields becoming more and more favourable. We would

The savvy investor is advised to purchase executive style flats in a prime central area situated close to an underground station

predict a return to 5 percent yields again by autumn 2011 for this sector of the market. Presentation of property for rental is key; maximising the rental return is vital but equally important is finding a tenant fast thus minimising void periods. Investors need to be in tune with tenants’ demands and decorate, equip, furnish and present the property in the right way. A good rental agent should be able to offer this service either as general advice or under the umbrella of their management division handling the full refurbishment. The sales and rental departments should also be able to work together advising on the right property to buy, the projected rental return and suggested improvements to maximize the rental income. Investors looking for higher returns need to source property outside of the prime central zone. However, these areas, being less stable, will result in a riskier overall investment, with property values being more volatile. Prime locations remain hot favourite for the international investor. I Fiona Guthrie, Lettings Director, Plaza Estate

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focus

The £36 billion question for property investors Investor confidence in the commercial property sector is relatively strong, despite elements of political and economic uncertainty, says David Wiley, director, research, CB Richard Ellis

he UK undoubtedly faces a number of challenges; both international and domestic. These affect not only the pace but also the shape of its projected recovery both at the macro level, but also for the real estate market. In the short term, economic conditions have thrown up a number of unforeseen complications to the broader improvements expected, particularly the loss of momentum at the end of 2010, the higher than expected rate of inflation and the sharp increases in global oil prices. The unknown consequences of Middle Eastern instability and the disruption to supply and manufacturing chains resulting from the earthquake in Japan pose further challenges. Although the ultimate impact of these on the UK economy is as yet difficult to

opportunity for investors into UK commercial real estate in the next few years.

Real estate market activity The recovery in UK commercial property since the market trough in June 2009 saw capital values rise by 20.2 percent by the end of December 2010. However, valuations remained 33 percent below their 2007 peak. The £36.5bn of property transacted in 2010 was a 43 percent increase over the 2009 total. The rebound was led by a resurgence of interest in Central London offices, which accounted for 28 percent of the total. Retail represented 33 percent, as purchases of retail warehouses and shopping centres picked up.

Market forecasts

20.2%

The rise in capital values between June 2009 and December 2010

£36.5bn

worth of property was transacted in 2010

quantify, they highlight the heightened uncertainty that investors face now and point towards the likelihood of higher risk premia. Despite these factors, the government’s recovery course appears to be largely on track for now, with confidence in UK bond markets remaining relatively firm. Within this spectrum there will be pockets of

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Divergent performances are predicted among the different grades of property. This will see further gains at the prime end of the market, but falls for secondary and tertiary property as softer investor appetite is expected to cause a mild market correction – with secondary assets and the regions more vulnerable. For the moment, further yield hardening has lost momentum in the absence of compelling signs of upward movement in rents. This is reflected in the yield impact for Q1 2011, which shows an annualised rate of capital growth of 3.2 percent. Actual capital growth in the year to date has been a modest 0.3 percent. Over the first two months of 2011, sub-sector capital value movements have shown a continuation of the performance patterns seen last year. Central London offices and retail warehouses have, as expected, outperformed. The other retail sub-sectors have seen

ÂŠ wikipedia/Dave Pape

focus

A resurgence of interest in Central London offices led the recovery in the real estate market

marginal reductions in values, along with offices outside of Central London. This points to the consistent trend showing that the largest, most liquid markets in the UK backed by solid occupier demand are attracting continued investor interest. This is however creating stiff competition for the top tier of assets and, with little appetite for risk being exhibited, investors are being forced to compete fiercely for top quality assets or are choosing not to invest at all.

Rental growth prospects Up to 2015, offices are expected to be the only principal sector to see meaningful rental growth, with an average increase of 5.2 percent pa. This is again flattered by projected growth in Central London, which is forecast to see rents rise by 7.3 percent pa. By contrast, rental growth outside Central London is expected to remain relatively subdued. Prospects for rental growth in regional office markets will be severely affected by the Governmentâ&#x20AC;&#x2122;s public sector cuts, traditionally the largest occupier in these markets. The outlook for secondary stock in regional office markets is likely to be worse, given the over-supply of space in many markets, the lack of transactional pricing evidence and risk appetite amongst investors. As with offices, retail rental growth prospects are expected to vary greatly across the country. However,

given the broader consumer slowdown, average rental growth is expected to be low, in sharp contrast to previous economic recoveries where retail rental growth has tended to lead the other sectors.

Softening of yields There has been some evidence of a softening of yields and falling values in office markets outside Central London over the past six to nine months, and this is expected to affect secondary High Street shops and shopping centres as well as 2011 progresses. Central London offices are expected to fare better, with capital values up 10.0 percent over the year backed by strong rental growth. Renewed capital growth is forecast over 2012 as economic growth strengthens and confidence returns. Beyond that, improvements in occupier markets are expected to lead to a gradual improvement of yields and moderate capital appreciation. From 2013 onwards the Central London market however will readjust as several significant new developments complete increasing available space in the Capital. Overall, the UK is facing a number of significant economic challenges, but the majority of these are not confined to this country alone. Investors seeking returns can still access quality assets with good income streams, however central London and prime retail assets will continue to dominate investor demand in the near term. I

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London’s residential magic London’s appeal to wealthy buyers of property rests in its worldwide reputation for commerce, culture and infrastructure, says Philippe Albanel of Barnes International.

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he proportion of foreign buyers in central London soared from 53 to 70 percent between 2009 and 2011 and this trend is pushing up prices. At the top end of the market, the proportion is even higher. The weakness of the pound ensures that what are effectively discounts for foreign buyers are still significant and recently the global economic crisis has produced a new type of buyer, the very wealthy from China, India, and Eastern Asia. As rents have been rising, lenders, investors and buyers are more confident of long-term capital growth in London than elsewhere. The main factor boosting London is the scale of demand from overseas purchasers. Even if foreign buyers are concentrated in more-or-less specific central London locations, they have enough influence to make an impact on house prices across the entire city. The reason for the strength of the London market in comparison with the regional markets are to be found in London’s overall, enticing “package”. This is comprised of several factors: a strong international financial sector, a highly skilled labour force, a strong inventory of high quality office space, a good internal and external transport network, and an overall high quality of life. London’s main economic driver since 1990 has been its increasing stature as an international financial centre coupled with the strong growth of the world economy and world trade. The international financial service companies are attracted to trading in London by both the business and personal tax rates, and the predictability of tax policy in the UK.

London’s magic

70%

The number of foreign buyers in 2011 compared to 53% in 2009

The subject of London as a safe-haven is one of the crucial factors influencing wealthy people to purchase property. Even more so than the financial culture, London is a welcoming place to live thanks to established networks of internationally-minded citizens and business associates and the high levels of safety and security to be found in the city. Furthermore, with the arrival of the Olympic Games in 2012, the London property market will remain strong and the attractiveness of investing will be given a further boost, broadening its horizons to further embrace the eastern parts of the Capital. I

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Part two: Legal & Planning issues

Lease accounting for property: make room for change The Leasing industry is estimated to be worth $640 billion worldwide but the vast majority of lease obligations, under international accounting standards, are not recognised on company balance sheets. All this is about to change, says Frédéric Larquetoux, Senior Manager at Saffery Champness

rench and UK companies applying international accounting standards only recognise ‘finance lease’ assets on their balance sheets; ‘operating lease’ assets are not recognised. A lease is defined as being an agreement whereby the lessor conveys to the lessee, in return for a payment or series of payments, the right to use an asset (such as a property) for an agreed period of time. A lease is a finance lease when it substantially transfers all the ‘risks and rewards’ incidental to ownership of the asset. In very simple terms, a finance lease is a lease that is primarily a method of raising finance to pay for assets, rather than a genuine rental.

Why change? Primarily to enhance convergence between international and US accounting standards and to ensure all leases are recognised on the balance sheet. The argument goes that the existing rules for classifying leases can be rigid and drive increasingly complex lease agreements leading to arbitrary distinctions between ‘operating’ and ‘finance leases’ that are economically similar in substance. A new ‘right-of-use’ model? The proposed accounting standard scraps the ‘risks and rewards’ model and introduces a single ‘right-of-use’ model applicable to most leases. Lessees would recognise an intangible asset for the right to use the leased item (amortised over the shorter of its useful life or the lease term), and a liability for the corresponding obligation to make lease payments. The initial lease liability would be measured based on estimates of the lease term and other variables (contingent rentals, term option penalties, etc) discounting future payments to present value. Lease payments would then be allocated between interest expense and a reduction of the lease liability (using the effective interest method), rather than,

as is currently the case for operating leases, recognised as rental expense under the straight-line method.

How will this impact companies? Communication with key stakeholders (suppliers, customers, shareholders,…) will be key as the recognition of leases on the balance sheet will impact many companies’ financial metrics and key performance indicators. The higher asset base may change asset turnover and return on capital ratios, and the increase in debt may lead to a possible deterioration of debt-to-equity and interest cover ratios. Also, the pattern of expense recognition may change for leases currently classified as operating leases; the total lease related expense may be front-end loaded due to the recognition of interest expense using the interest method. Additionally, the respective classification of interest and amortisation expenses as ‘financing’ and ‘operating’ is also likely to affect ‘operating income’ as well as increase earnings before interest, tax, depreciation and amortisation (EBITDA), and operating cash flows under the new model would be higher for leases currently classified as operating leases as lease payments would be treated as ‘financing’ cash outflows (operating lease rental payments are currently treated as an ‘operating’ cash outflows). So what’s next? Leading accounting and finance functions are already completing detailed impact assessments as the changes, thought become effective not earlier than 2014, possibly 2015, will require significant management and organisational resources. Changes are likely to impact internal controls and information gathering systems, accounting and IT systems, accounting policy decisions and manuals, financial statements, tax, and disclosures… There is only one constant in the world of international financial reporting, that is ‘change’ – businesses need to be prepared for it. I

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Who controls the planning and construction process? Local communities will gain greater control over housing and planning decisions, if a new bill passes through Parliament. But how will it work, and what does it mean for planning and real estate development, asks Robert Colenutt of the Northampton Institute for Urban Affairs.

he Prime Minister has summarised his view of the Big Society as ‘Empowering Communities’; ‘Opening up Public Services’; and ‘Building a stronger Civic Society’. One key ingredient of the concept is that decisions should be made locally and that local communities are best placed to decide on what development they should support, what services they need and how to deliver them. Yet this thought does not square with the housing and property market where developers want freedom to build where they want, not local regulations, and time-consuming neighbourhood consultations, increasing their costs and risks.

Community Rights This takes us to The Localism Bill which creates a number of new community “Rights”. These include a right for the community to challenge the delivery of local authority services; a right for community organisations to have first option to buy designated “land of community value” that comes onto the market; a right for parish councils and neighbourhood forums to prepare neighbourhood plans; and a right for local people to hold referendums on local services and local taxation. These rights have the potential to slow down or “interfere” with local decisions about planning,

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development, services and council tax that would normally be taken by a local authority. Yet the measures tap into the frustrations of many communities with local government regulations and bureaucracies, where public consultations which often seem to have no effect, and with some public services unresponsive to local needs.

Local authority powers From the point of view of local authorities faced with the need to make cuts and find economies, there are advantages in being able to reduce staff by out-sourcing, transferring the costs of running community facilities such as libraries and community centres to community groups. At the same time, localism creates complications, costs and political risks. Local authorities will have a duty to enable and manage the new community rights, including entertaining tendering from a diverse and fragmented range of voluntary and community providers, and helping communities draw up neighbourhood plans. And they will be required to regulate, manage and scrutinise the whole process. There will be legitimate demands on them to help facilitate the process with funding and staff time. This could raise expectations of community power and self help to unrealistic levels. It will

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Towns and cities have been planned with aesthetics in mind, such as Royal Crescent in Bath, England

also be costly. Instead of the Localism Bill reducing bureaucracy and costs and increasing “freedom” for local action, new bureaucracies, regulations and financial scrutiny will be created to establish and manage the system.

Impact on the Property Sector

might undermine the local authority’s own plans, painstakingly prepared over the past few years. They also argue that unless there is proper funding for neighbourhood plans and community rights, the communities that are most likely to benefit are those relatively prosperous communities who want to block development, not encourage it.

The property industry, particularly the housing sector An Opportunity for Local Communities? is in a recession, and it is traditionally resistant to measures that increase costs or cause delays. When The Localism Bill will not be enacted until next year, but many in the voluntary and community sector are the Localism Bill was first published, the property industry was supportive of the Localism considering whether Localism really is Bill primarily because it was couched in an opportunity to undertake their own development and take a lead where the terms of anti-regulation, highlighting One key ingredient of the concept is that an end to top down regulation by private and public sector are seen to Whitehall. But as the detail became decisions should be have let them down. Potentially, the opening is there – they have the legal clearer and potential risks of delays and made locally and that local communities are fragmentation evident, there is concern right to create their own plans. But that the strategic element of planning best placed to decide without resources to implement these schemes or buy land under Community at regional or city wide level which is on what development they should support so important to developers may be lost. Right to Buy, or have the backing to Without a strategic overview, Localism run services, they may find themselves frustrated. might encourage “NIMBYISM” – Not In My Back Yard reactions to growth. So, the Localism Bill which arrived with such promise, is creating as many questions and challenges Many of these concerns are shared by the as it is creating opportunities for communities, local professional bodies that represent Town Planning. Planners support localism in principle but think it authorities and developers. I

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Legal minefield in property acquisition Acquiring land for large projects poses legal problems for developers. Here, Carol Wakeford, partner of Cripps Harries Hall, lays out some such problems encountered during the building of the Highspeed rail link to St Pancras

igh Speed 1 arrived at St Pancras International three and a half years ago, in November 2007. The Kent section of the railway was completed first in 2003, followed by the London section, travelling through and below the capital to arrive at St Pancras International in Central London. The company had to work with a wide range of owners and companies to acquire their land. These included farmers, private individuals and utility companies, who had to face the critical challenge of diverting but maintaining electricity and water supplies to the many communities along the route while the railway was under construction. Some complications included the purchase of the ‘tube’ of soil to build the tunnels into Central London

High Speed 1 emerging from the Channel Tunnel

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and St Pancras International. Homeowners had to understand that a tube of soil below their property needed to be purchased to build the tunnels, while the soil had no value in the market. Negotiations took place through the Lands Tribunal – the ‘court’ which decides the amount of compensation to pay to a landowner whose land has been taken for the project, if the compensation cannot be agreed amicably. The lawyers report that they encountered the following problems and challenges: • Homeowners who wanted compensation for the noise of the train passing, even when their home is alongside another existing railway or a motorway; • Those whose home is already over a tube line into London; • Landowners who said their land is ripe for development but could not now be developed because the railway ran under or over it; • The homeowner who said the cracking in his house was caused by the trains passing. In fact the properties had been inspected prior to construction and the cracks were present then too; • Homeowners complaining they could not sleep because the trains pass under their bedroom window, although the sound of the flushing toilet next door caused more noise than a Eurostar… Cripps Harries Hall is now working on London’s Crossrail project and hope to obtain work on High Speed 2, the new high speed railway link from London to Birmingham, Leeds and Manchester. I

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Inventories: the key to cutting out letting disputes Renting a property or premises can be a tricky process, for both landlords and tenants. One must have an inventory in place to resolve any dispute, otherwise there is no proof of the property’s

An Inventory Report This is an accurate and detailed description of the interior of a property; recording the furniture and fittings and also describing the decorative order and will include every item, with description and comments on any deficiencies/damages and the working order of certain items. In addition to this, a Check-In Report, a CheckOut Report and Interim Report are also required at appropriate stages of the tenancy. Once the accuracy of the report is agreed, it becomes a binding document. An independent and impartial report will allow an accurate comparison to be made at the end of the tenancy and thus is primarily used to prevent or resolve any dispute between landlord and tenant. The Dispute Service The Dispute Service is an independent, not-for-profit company established in 2003 to resolve complaints and disputes arising in the private rented sector rapidly and fairly. It was awarded a contract by the Government to run a Tenancy Deposit Scheme under legislation which came into effect on 6 April 2007. All deposits taken for Assured Short hold Tenancies (ASTs) have had to be covered by a Tenancy Deposit Scheme within 14 days of the start of tenancy. Any private landlord or regulated letting agent offering residential property for rent is eligible to apply to join. Under the Tenancy Deposit Scheme: • Deposits will be protected during the tenancy. • Where there is no dispute at the end of the tenancy, the deposit should be returned promptly by whoever is holding it.

original condition, says Sidibe Fatou, Director at Déjà Vu Inventories

An inventory is important when moving into a new property

• Where there is a dispute about the return of the deposit, it will be dealt with fairly by the Independent Case Examiner (ICE). The ICE will make a decision quickly and the deposit will be paid out without unnecessary delay. The Tenancy Deposit Scheme has effectively made Inventory Reports an essential requirement in the lettings industry.

Using Alternative Dispute Resolution It is better than sending disputes to court because deposit disputes need to be resolved rapidly and cheaply. Tenants usually need the money as a deposit on their next property, and landlords need to know how much will be available to spend on redecoration, repair of damages and so forth. The TDS successful adjudication process is based on an expert assessment of documentary evidence (the Inventory Report which can also include photographs and videos). I

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Part three: Case Studies

Changing the shape of East London The Olympic Games in 2012 promise London a great and memorable spectacle. Additionally, East London can also expect to enjoy a lasting economic legacy from the Games thanks to strong investment in the area, says Matt Black, senior director, Central London Development

he economic and physical landscape of East London has experienced dramatic change as a result of the decision by the International Olympic Committee (IOC) to award London the right to host the 2012 Olympic Games. In 2005, Stratford was an area little known and understood by the rest of the capital and the country. It comprised a few hundred acres of heavily contaminated land housing, old and often redundant industrial buildings in hundreds of separate ownerships with little opportunity for regeneration or redevelopment. The investment into Stratford in order to create the Queen Elizabeth Olympic Park, one of the largest real estate projects in Europe, will completely transform the character of the area, in effect creating a whole new area of London. The post-games park will provide in excess of 11,000 new homes for a population of over 20,000 people. In September 2011, the area will also see the opening of Westfield, Stratford. This is Europe’s largest urban shopping mall, and will provide 1.6million square feet of retail space, radically improving the retail offerings in east London. Just as importantly, it will bring with it over 18,000 new jobs to an area that has suffered mass unemployment and economic hardship for a number of years. In addition, the legacy will provide over 5 million square feet of new office buildings and further employment opportunities. The sporting legacy will include a Premier League football stadium, an aquatic centre containing two 50-metre swimming pools, a velodrome, a handball arena, as well as additional venues for other leisure and cultural activities. The Stratford area also now benefits from what is acknowledged to be among the best public transport connections in London, with underground and

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The Olympics are changing the face of Stratford

overground networks and the Channel Tunnel rail link station direct from King’s Cross to Paris. The regeneration of Stratford has created a substantial amount of interest from the international investment market where we have seen Canadian and Dutch pension funds jointly purchase 50 percent of Westfield’s shopping centre for over £870 million, and the Swedish company Inter–IKEA purchasing land south of the Olympic Park valued in excess of £25 million. This investment interest has been further underpinned by the phenomenal volume of money that is currently chasing the prized investment known as the Athletes Village; a complex that comprises 2,800 flats to be delivered to the market after the Olympic Games themselves take place. Whilst the Olympic and Paralympic games will form the undeniable focus of the events to come in 2012, the legacy of the Olympic Games will change the landscape and outlook of east London for generations to come. I

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Overseas students fill up London’s flats The effects of the global economic slowdown are dramatically re-shaping the short-term lettings market in London, says Rafael dos Santos, marketing and business development director of London UP! Accommodation

he short-term letting market in London is booming, and this is the result of a massive rise in the number of young French graduates coming to the Capital in recent years. Rafael dos Santos says that the occupancy levels of his 190-strong stock of apartments has risen from 70% in 2010 to 95% this year. This trend however is not being driven by business forces but rather by personal choice. Before the recession, a major French bank had been an important client for London Up! Accommodation in bringing over to London a high volume of graduates in need of shortterm lets for the duration of their work placements and internships organised by the company. However, this year Mr dos Santos has seen no business or bookings at all from the bank, a sign, he thinks, that the staff travel budgets for companies have evaporated and the programmes that brought the previous numbers of students and interns to London have been radically curtailed by the economic difficulties. The demand from young people derives from a combination of a strong Euro giving them more for their money and the desire to move abroad to gain international experience to boost their employability in an increasingly Europe-wide and competitive market place. The market as a whole is struggling, following a very testing period. A short-fall in business from the corporate sector is forcing firms to readapt to the postcrisis context and uncover new markets. These include growing demand from countries such as Brazil, China and India. Thousands of students come to London from these countries, particularly for MBA and MA courses, and although immigration regulations have

French students choose London to succeed

been tightening recently, overseas students are willing and able to pay full fees for their courses and they have deep pockets; they are, asserts Mr. dos Santos, ‘looking to invest in the UK’. I J.H Rafael dos Santos, marketing and business development director of London Up! Accommodation, an agency which specialises in short-term lettings in London

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The French making themselves at home in Londonâ&#x20AC;Śdoes it show? When French people come to London, they turn mundane properties into something stylishâ&#x20AC;Ś and French! Marie-CĂŠcile Boulle observes

he French attach great importance to finding a home where they can live well and entertain their friends and family. This has greatly influenced the typical English interiors of yesterday. At some stage, English landlords realised that the French actually liked London and the Londoners. They came to appreciate that the French tenantâ&#x20AC;&#x2122;s unwillingness to compromise on quality at the start of a tenancy led to a long, mutually beneficial tenant/ landlord relationship. Landlords found themselves being handed back a property in better condition than at the beginning of the tenancy. Attracting this model tenant became a priority to the professional landlord. Separate tiny kitchens were transformed into open plan â&#x20AC;&#x2DC;cuisines americainesâ&#x20AC;&#x2122;, wood replaced carpeted (bathrooms too) floors, neutral white and off-white to suit any interior dĂŠcor is now de rigueur and, in the family market, removing furniture became the norm. Many suppliers in the building and refurbishment sectors have benefited from this Anglo-French transition. Landlords have also enjoyed getting to know their tenants and some have received the unexpected pleasure of being invited to dinner. In recent years the French have showed further appreciation of life in their country of adoption, entering the emotionally charged home acquisition market; some are actually â&#x20AC;&#x2DC;riskingâ&#x20AC;&#x2122; investing in â&#x20AC;&#x2DC;buy to letâ&#x20AC;&#x2122; in London real estate. This is a sure sign of a renewed and long term entente cordiale from which we can all benefit, and who knows where this cross-cultural experience will lead us all? I

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ÂŠ flickr/Diorama Sky

The French are here to stay

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Summer Exhibition 2011 at the Royal Academy of Arts 7 June – 15 August 2011 / Admission £10 ||| The Royal Academy’s annual Summer Exhibition is the world’s largest open-submission contemporary art show. Now in its 243rd year, this exhibition will continue the tradition of showcasing work by both emerging and established artists in all media including painting, sculpture, photography, printmaking, architecture and film. This year’s co-ordinator is Royal Academician Christopher Le Brun. Playing a significant role is Michael Craig-Martin who will be curating one of the largest galleries. The Architecture Room will be curated by Piers Gough and Alan Stanton. I

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a ge n da

What’s on? Toulouse-Lautrec And Jane Avril - Beyond the Moulin Rouge ||| Nicknamed La Mélinite after a powerful form of explosive, the dancer Jane Avril (1868-1943) was one of the stars of the Moulin Rouge in the 1890s. Known for her alluring style and exotic persona, her fame was assured by a series of dazzlingly inventive posters designed by the artist Henri de Toulouse-Lautrec (1864-1901). Jane Avril became an emblematic figure in Lautrec’s world of dancers, cabaret singers, musicians and prostitutes. However, she was also a close friend of the artist and he painted a series of striking portraits of her which contrast starkly with his exuberant posters. The exhibition brings together this rich group of paintings, posters and prints from international collections to celebrate a remarkable creative partnership which captured the excitement and spectacle of bohemian Paris. I Courtauld Gallery / 16 June – 18 September 2011 / Admission charge

Treasures of Heaven: saints, relics and devotion in medieval Europe ||| This major exhibition brings together for the first time some of the finest sacred treasures of the medieval age. It features over 150 objects from more than 40 institutions including the Vatican, European church treasuries, museums from the USA and Europe and the British Museum’s own pre-eminent collection. Treasures such as these have not been seen in significant numbers in the UK since the Reformation in the 16th century, which saw the wholesale destruction of saints’ shrines. The exhibition offers a rare opportunity to glimpse the heritage of beautiful medieval craftsmanship that was lost to this country for centuries. I 23 June – 9 October 2011 / British Museum / Admission charge

Holy thorn reliquary, Paris, France, About 130 - 97, Gold, enamel, rock crystal, pearls, rubies, sapphires. Copyright The Trustees of the British Museum

Kensington Palace Gardens Bastille Day Ball Charity Dinner and Party ||| This year, the Bastille Day Ball, organised by FranceInLondon. com will be held in the Kensington Palace Gardens behind the French Ambassador’s Residence. This exclusive event, organised under the patronage of the French Ambassador, has two aims: to celebrate Bastille Day in style but more importantly, to raise funds for the Fédération des Associations Françaises de Grande-Bretagne for them to assist their charitable members. We invite you to join us at this fabulous event which promises to be one of the highlights of this year’s summer season. I For more information please visit www.bastilledayball.co.uk. It will take place on 14 July 2011 from 6.30pm until late

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a ge n da

What’s on? Cendrillon – The Royal Opera House ||| For the first time ever, The Royal Opera presents the story of Cinderella as told in Massenet’s opera Cendrillon. The production, new to the Royal Opera House, is by Laurent Pelly, whose previous work here has included the spectacularly successful La Fille du régiment, a heart-warming L’elisir d’amore and last season’s stylish new Manon. Pelly brings his characteristic lightness of touch, wit and elegance to Massenet’s delightfully tuneful score against sets and costumes of fairytale charm. Joyce DiDonato takes the title role, with Alice Coote – just like the Principal Boy familiar from British pantomime – as her Prince charming. And of course there has to be a fairy godmother, played by Eglise Gutiérrez, in this version of a tale that gained its popularity from the published fairytales of Frenchman Charles Perrault. Musical highlights include the fairy godmother’s airy coloratura, the orchestral dances of the ball, the March of the Princesses, and of course rapturous duets between the Prince Joyce DiDonato, title role lead soprano and Cendrillon. French music specialist Bertrand de Billy is the conductor for an opera of radiance and charm to finish the 2010/11 Season on a note of pure pleasure. I 5 July – 16 July 2011

EXCLUSIVE! The Chamber is giving its Patron members the opportunity to attend the Premiere of Cendrillon on the 5th of July. The event promises to be a memorable one as Patron members will enjoy an “apéritif dinatoire” in the Conservatory (privatised for the occasion) – a visit backstage and VIP seats. The Chamber would like to thank Pernod Ricard for being the main sponsor of this fantastic evening and BNP Paribas Leasing Solutions for being a supporting sponsor. Please contact Jonathan Rosen on +44 20 7092 6638 for more information.

French Radio London - La Fête de la Musique ||| French Radio London is offering you the chance to spend an incredible night at the Fête de la Musique on the 23 June from 7pm to 12.30am at the fantastic KOKO venue. Among the artists: Gaëtan Roussel, Julien Doré, Bertrand Belin, Gabi and Michaël Canitrot. I Save the date and book online! Admission: £30 or £35 on the day of the concert. Visit www.frenchradiondon.com to book your ticket. The venue - KOKO

Glamour of the Gods: Hollywood Portraits – Photographs from the John Kobal Foundation ||| Glamour of the Gods is a celebration of Hollywood portraiture from the industry’s golden age, the period 1920 to 1960. From Greta Garbo and Cary Grant to Audrey Hepburn, James Dean and Marilyn Monroe, it is these portraits that transformed actors and actresses into international style icons. In many cases these are the career-defining images of Hollywood’s greatest names and help to illustrate their enduring appeal. I National Portrait Gallery / 7 July - 23 October 2011 / Admission charge © Clark Gable and Joan Crawford for Dancing Lady

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bo ok r e v i e w s

Underground Time

Philosophies of Difference

by Delphine De Vigan, translated by George Miller ||| Everyday Mathilde takes the Metro and then the commuter train to the office of a large multinational where she works in the marketing department. Everyday, the same routine, the same trains. But something happened a while ago - she dared to voice a different opinion from her moody boss, Jacques. Bit by bit she finds herself frozen out of everything, with no work to do. Thibault is a paramedic. Everyday he drives to the addresses he receives from his controller. The city spares him no grief: traffic jams, elusive parking spaces, delivery trucks blocking his route. He is well aware that he may be the only human being many of the people he visits will see for the entire day and is well acquainted with the symptomatic illnesses, the major disasters, the hustle and bustle and, of course, the immense, pervading loneliness of the city. Before one day in May, Mathilde and Thibault had never met. They were just two anonymous figures in a crowd, pushed and shoved and pressured continuously by the loveless, urban world. I

by François Laruelle, translated by Rocco Gangle ||| In this first English translation of his work, Laruelle explores the major European thinkers from Nietzsche to Derrida to define his own ‘non-philosophical’ project. A crucial text in the development of François Laruelle’s oeuvre and an excellent starting point for understanding his broader project, “Philosophies of Difference” offers a theoretical and critical analysis of the philosophers of difference after Hegel and Nietzsche. Laruelle then uses this analysis to introduce a new theoretical practice of nonphilosophical thought. Rather than presenting a narrative historical overview, Laruelle provides a series of rigorous critiques of the various interpretations of difference in Hegel, Nietzsche and Deleuze, Heidegger and Derrida. From Laruelle’s innovative theoretical perspective, the forms of philosophical difference that emerge appear as variations upon a unique, highly abstract structure of philosophical decision, the self-posing and selflegitimating essence of philosophy itself. I

Where would I be without you? by Guillaume Musso translated by Anna Brown

Présence française dans le monde, l’action culturelle et scientifique

and Anna Aitken

||| Parisian cop Martin Beaumont has never really got over his first love, Gabrielle. Their brief, intense affair in San Francisco and the pain of her rejection still haunt him years later. Now, however, he’s a successful detective - and tonight he’s going to arrest the legendary art thief, Archibald Maclean, when he raids the Musee d’Orsay for a priceless Van Gogh. But the enigmatic Archibald has other plans. Martin’s pursuit of the master criminal across Paris is the first step in an adventure that will take him back to San Francisco, and to the edge of love and life itself. I

by Philippe Lane, Préface de Xavier Darcos, président de l’Institut Français

||| With over 400 French high schools abroad, nearly 1000 French Alliances distributed worldwide and an extensive cultural and scientific network, France undoubtedly plays an important role in the field of the “diplomacy of influence”. What is its scope in this regard? What are its current priorities? What are the means and terms of its operation? Highly accessible, concrete and pedagogic, and addressed to a wide audience, this book contributes to the ongoing debate on the action and consequence of France’s influence in the world. I

These books, written in french and recently translated into english, were selected by the French Institute

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Cannes 2011: A Vintage Year A vintage year for the Cannes Film Festival as Robert De Niro presides over this year’s Jury

Jean Dujardin won Best Actor at Cannes

||| The 64th edition of the Cannes Film Festival, with a jury presided by the legendary Robert de Niro, has been an exceptional year. As with a good wine, we are sure that this year’s films are ones to savor, and that they will endure as they take their place in the history of cinema. The Cannes Film Festival awarded its top prize to what may be the most ambitious film made anywhere by anyone: The Tree of Life. Notoriously shy and reclusive like a true artist, and inevitably raising comparisons to Stanley Kubrick, the American director Terrence Malick did not appear at the closing ceremony to collect the Palme d’Or. His film sets out to explore no less than the origins and meaning of life, and features dinosaurs, the birth of the Universe and what might have been the afterlife, as well as a boy’s childhood in 1950s smalltown Texas. Another winner of this year’s selection, one to remember, is the flamboyant and magnificent Jean Dujardin, who received the Award for Best Actor thanks to his brilliant performance in The Artist, a black-andwhite film without any dialogue whatsoever. It’s a work of genius, a joy, a tribute to the glories of silent cinema and an absolute triumph of love.

Another French talent who received an Award was Maïwenn, who took away the Jury Prize for Polisse, a gritty film about a Child Protection Unit, which is a powerful look at the harrowing crimes this group of officers investigate on a day to day basis. Kirsten Dunst was awarded the Best Actress Prize for her performance in Melancholia, even though its director Lars Von Trier has been declared ‘persona non grata’ by the Cannes Film Festival following his controversial declarations made during a press conference in the middle of the festival. Despite this, the film remains one of his best and we’re happy to see the main actress rewarded, two years after Charlotte Gainsbourg for Antichrist and 11 years after Björk for Dancer in the Dark. The Cannes Film Festival has always attracted the most famous stars but this year was pretty exceptional: Penelope Cruz, Johnny Depp, Brad Pitt and Angelina Jolie… they were all there, as were jury members Jude Law and Uma Thurman. But the most unique moment on the red carpet was when all the photographers stopped taking pictures, put their cameras down and applauded the veteran actor Jean-Paul Belmondo as he was walking to the Palais to receive a very special award: his own Palme d’Or honouring his 50-year career in film. Cinémoi produced seven TV shows sponsored by Renault, and more than 35 short programmes for the web, providing the most comprehensive and unique coverage of the 64th festival to an international audience, thanks to a partnership with Sundance Channel Global, in a deal facilitated with 3DD Entertainment. You can view exclusive pictures of the biggest stars and short edits of all of Cinémoi’s features on the free iPhone app. (also available on Android phones). I Julien Planté, Cinémoi’s Artistic Director

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Frédéric Mitterrand from Cannes: ‘French cinema is very diverse’ The French Minister of Culture and Communication spoke to Julien Planté, Managing Director of Cinémoi about French cinema and in particular the Cannes Film Festival, which he attended.

||| JP - So you are in Cannes, were you at the Opening Ceremony last night?

FM - Yes I was. It was not my first Opening Ceremony but it was the first time that I was at the top of the Red Carpet welcoming the guests. I have always had a great interest in the Cannes Film Festival since my first attendance in 1971, but yesterday was more special than ever because I had that very curious

impression of greeting a wave of celebrities, including the President of the Jury, Robert De Niro, just like a tsunami of fame. What do you think about this year’s French selection at Cannes, with Alain Cavalier, Maïwenn and Christophe Honoré?

I haven’t seen their films yet but I think it is positive that Alain Cavalier is back because he is a relatively unknown, yet very important French director. Thérèse, which was shown fifteen years ago and received the Jury Prize then, was a complete surprise. I think that Alain Cavalier being back in Cannes might pleasantly surprise everybody. French cinema is very diverse, what do you think of French cinema today?

French cinema is very diverse indeed and that actually is its strength. We produce 260 French films every year. Some people say it is too many. However, all of them are shown and hopefully seen, but sometimes very briefly in cinemas and mainly on television. But in some cases, the directors become famous later on and all of a sudden, their earlier work becomes important. Yesterday I was surprised to see that everyone was talking about Bernardo Bertolucci’s first film called Prima della Rivoluzione. Actually that was not his first movie. He directed another one before that, which was completely unsuccessful and immediately forgotten. Then 15 years later, it was rediscovered when Bertolucci became famous. So to those who say there are too many movies, I say you are not very wise.

Robert De Niro was President of the Jury at Cannes this year

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You are a man of television. Indeed, you had your own TV shows where you presented films. What would be your advice to a channel such as Cinémoi?

Open your mind. Watch as many films as you can, and don’t trust the people who write about films. I was very fond of films which were considered by critics as really bad and it was terrible for me because I used to like those films. But then I decided that what I liked was more important. Ten or twenty years

Frédéric Mitterrand flanked by Oliver Bengough, CEO (L), and Julien Planté, Managing Director of Cinémoi (R)

later, I saw that the reviews had changed and that some of the bad films were considered good! So my advice is just rely on your own judgement… When you really like a film, you don’t change your mind… You like it very much forever. I saw films when I was 12 or 14 years old which moved me very strongly. Then I doubted for years that they were as good as I thought. However, when I saw them again when I was much older, I was surprised to realise that my original impressions had been correct and that I was still moved by them.

Since the launch of Cinémoi two years ago I think we have interviewed more than 80 personalities like Agnès Varda, Vincent Cassel, Jacques Audiard… I would like to ask you just like I’ve asked all of them : what do you think about Cinémoi?

I think that Cinémoi is a brilliant idea, a beautiful project, and that it deserves to be supported very strongly. As a French Minister but also as an ardent movie lover, I’m a very strong supporter of Cinémoi and I give you all the wishes of a movie lover and all the blessing of a Minister. I Thursday 12th May, Cannes

Which films are you talking about?

For example the Italian film Amici per la pelle directed by Franco Rossi which is about a very strong friendship between two guys. I loved that film. The film disappeared for 15 years and when I saw it again just one year ago, it was still marvellous.

It’s very clever to do that! I can’t do anything else but encourage you and say you are very brave! You have my congratulations for that!

I suppose it is one of the missions of the Festival de Cannes to bring foreign films to an international audience. It is also our mission here at Cinémoi to bring French films to a British audience, all with English subtitles, films that have sometimes never been seen before, from all periods and all genres.

Kirsten Dunst won Best Actress at Cannes

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w i n e p r ess

The King of Wines at Royal Wedding

Wines have a long and close history of associations with the Monarchy, both here and in France

Pol Roger was served to the Duke & Duchess of Cambridge

London’s best cheesemonger

Time Out

Delicious and unique CHEESES to impress your guests for any event www.la-cave.co.uk

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08451088222

hat did Kate and William drink after their beautiful wedding, behind the closed doors of Buckingham Palace? The question should not sound indiscrete. For both the British Crown and wine producers have created a myth that persists to the modern day about the ‘king of wines’ and ‘the wine of kings’. No one interested in British culture can fail to know the favourite drinks of James Bond and Queen Elizabeth. The ‘By appointment to Her Majesty the Queen’, warrant held by Lanson among others, is a precious right that privileged holders show proudly on their products. Both retailers and consumers believe that drinking the same Champagne as the Queen and eating the Prince of Wales’s Cornish natural yogurt allows them to share in their nobility. This phenomenon is not limited to the British or even to our capitalist society! From Charlemagne in the VIII century to today, the king’s drink has always been part of a marketing plan by the wine producer. Two things always catch one’s attention when visiting wine producers: firstly, the fabled size of the Tronçais forest which was planted under Louis XIV by Colbert in the centre of France. Indeed, most wine producers boast their barrels were made in oak from the Tronçais forest! No less extraordinary is the fact that many wine regions claim that a particular king liked their wine. Such a tradition is not so valuable, of course, when the king is not generally liked. A number of wines are named after kings. The first was the white wine of Burgundy Corton-Charlemagne, named after Emperor Charlemagne. He is supposed to have owned the land on which the grapes grew.

w i n e p r e ss

François the first is supposed to have authorised the production of the Cour-Cheverny in the Loire Valley. He had apparently brought back from Burgundy the grape variety Romorantin, the basis for this appellation. Half a dozen French wines contend for the honour of being Henri IV’s favourite wine. These include Arbois in Jura and Givry in Burgundy. Legend has it that Henri IV had his lips covered by garlic at his birth, mixed with Jurancon, the local dessert wine in the South-West Kingdom of Navarre. Louis XIII loved to drink Clos de Vougeot with his feast of game, while Louis XIV’s favourites were Rosé des Riceys (a still, Pinot Noir from Champagne), the red from Burgundy advised by his doctor Fagon and the Tokay from Hungary. Napoleon drunk Chambertin also from Burgundy but, at the end of his life in St Helena, drank the famous sweet wine of Constantia from the Cape Town region. Charles X, perhaps under the influence of his exile in England, appreciated the more English taste of Château Lafite.

So it is no coincidence that most of the favourite wines of the Kings of the Vallois mostly came from the Loire Valley, also called the Valley of the Kings. The prestige of Champagne, sometimes called “the King of wines” may be derived partly from the fact that the French Kings were crowned at the cathedral of Reims, which is at the heart of the Champagne region. The link between power and wines is demonstrated by the revival, at the time of the fall of the Soviet system, of the wine of Massandra in Crimea created for the Tsar Nicolas II. Given the popularity of the Royal wedding, there is a great future for wines with a royal or prestigious endorsement. The Champagne Pol Roger, served for Kate and William, would not be the same without the Winston Churchill cuvee; Chateauneuf would not be the same without ‘du Pape’, the Romanée without the Prince de Conty, the Cognac without Napoleon or James Bond without Dom Perignon...Oh sorry, I mean Bollinger! I Thibault Lavergne is the managing director of Wine Story Ltd

Cheese of the month by La Cave à Fromage: Crottin de chavignol ||| Born on the banks of the Loire valley, in the Sancerre district, Crottin is a very small goat’s cheese, weighing in at approximately 60 grams. The name “Crottin” comes from the local dialect, with ‘’crot’’ meaning “hole”. Being on the riverbanks, the soil is formed of clay, and farmers use this clay to make the dishes for their cheese. At the end of the 19th century, the pest Phylloxera spread to the Loire Valley and decimated many of the vineyards. Farmers decided to intensify the rearing of goats in place of the vines, resulting in a much higher yield Crottin de Chavignol and availability of goat’s milk. When young, after around 10 to 14 days, Crottin is light and slightly creamy at heart. When more mature, it displays a beautiful grey to blue rind, and will be dry to the taste releasing delicious hazelnut aromas. I

Wine to accompany Crottin de Chavignol by Wine Story ||| I remember visiting the tiny village of Chavignol in the late 90’s and being surprised by the fact that the goats were invisible. Chavignol is renowned for its eponymous cheese, but, except for in the Cheesemakers’ house, you are unlikely to come across the famous Crottin goat’s cheese. Rather, you will discover a lot of Sauvignon Blanc vines from which the Chavignol, where goats are invisible! more famous Sancerre is made. Located only a few miles north west of the town of Sancerre, Chavignol is one of the fourteen villages that can produce Sancerre wine. In the middle of the village Pascal Thomas produces ripe and fruity wines. If you prefer your Sancerre more mineral and dry, try the Domaine La Croix Saint Laurent in Bue, another village a few miles away. In both cases Crottin de Chavignol and Sancerre taste well together and this is not a legend. I

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news @ the ch a mber T

he Chamber provides a fertile and lively forum for discussion of topical and important ideas. In addition to its value as a networking organisation, it is also a place for learning and sharing knowledge and experience. As we see in the report of our AGM, Forums and other Chamber activities have been developing strongly. That, together with a positive financial result, provides an optimistic springboard for the coming year, said managing director, Florence Gomez. Lively debate and discussion was evident at the launch meeting of the Climate Change Forum chaired by Richard Brown. Members who participated were eager to both share experiences and understand the internal procedures and philosophies adopted by other companies towards climate change and environmental issues. Forums are constantly trying to convey their shared knowledge as widely and as effectively as possible, so we would like to urge members to take an interest in the publication called ‘Light at the End of the Tunnel’, that was produced by the French Chamber’s Cross-Cultural Relations Forum. This valuable document was assembled as a result of shared knowledge, but it has the very practical purpose of enabling companies to do better business across cultures. The Chamber’s capacity to attract those in the vanguard of best thinking and best practice was amply demonstrated at the meeting of the Luxury Club, where Arnaud de Puyfontaine (CEO of National Magazines) and Steve Hatch (MD of MEC UK) gave masterful analyses of the communications challenge facing companies in the luxury area. The value of earnest discussion and knowledge sharing needs to be offset by some relaxation, and that was undoubtedly obtained at the Champagne networking event on 13 April at the St Pancras Renaissance Hotel. The event was held in the Ladies Smoking Room and 150 members in attendance heard a fascinating account from the hotel historian Royden Stock, about the remarkable history of the newly-refurbished hotel. Royden guided the privileged members around the historic Victorian building. (see page 33). Banking regulation was the subject of another important and informative Chamber event, sponsored by HSBC and held on May 17. This seminar was addressed by senior figures of the bank. It was well-attended by Chamber members, demonstrating the width of our interests and curiosity. The Chamber is pleased to welcome 14 new members since our last publication. Two of these are Patron members, Sagemcom, a French hightech company, represented by Raphaël Fainac, and the Royal Academy of Arts with whom we are delighted to have signed a partnership agreement. The RA is represented by Stuart South I

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2 New patron members:

Royal Academy of Arts represented by Stuart

South, Corporate Membership Manager | www.royalacademy.org.uk

The Royal Academy of Arts, founded in 1768, is a completely autonomous politically independent self funded charity which recognises each strand of the visual arts, accommodating every level of interest including architecture, painting, photography and sculpture. The RA has creativity as its backbone and as well as exhibiting a programme of blockbuster exhibitions each year, the RA stimulates debate with a varied schedules of talks tours and workshops as well as creating the next generation of artists through the RA Schools. Forthcoming exhibition highlights include ‘Degas and the Ballet’ in the Autumn of 2011, followed by ‘David Hockney RA: A Bigger Picture’ in Spring 2012 and an exhibition of impressionist masterpieces during the Olympic period. Into 2013 the RA will host Édouard Manet: From Portrait to Tableau.

Sagemcom represented by Raphaël

Fainac, Managing Director | www.sagemcom.com

A French, international scale, high-tech company, Sagemcom is working to establish itself as a leader in high added value communicating terminals. It specialises in broadband communications, telecoms and energy, and the document management sectors: consumer and professional printing terminals, digital TV set-top boxes, broadband and residential terminals, communicating management solutions, energy and systems management, telecom partnerships and convergence. With a turnover of circa 1.4 billion euros, Sagemcom employs 7,000 people on five continents. In the UK, Sagemcom has a very strong presence with the key energy, mobile and TV operators and the major retailers. And it continues to grow and to innovate for the UK homes to connect to the digital world of tomorrow.

3 New Corporate members:

Jeux D’images www.jeuxdimages.co.uk Jeux D’images hits the London scene bringing with them 30-years worldwide experience from their Studio in Paris. They execute visionary and creative photography/videography for all Corporate - Awards - Films - Celebrities - cuttingedge Fashion - and special occasion photography which has earned them a global reputation of unrivalled standards of excellence. Represented by David Attiach, Director

RSM Tenon www.rsmtenon.com RSM Tenon is the 7th largest entrepreneurial professional service firm in the UK today, with leadership in the provision of risk management, tax, recovery, financial management and business advisory services, looking after individuals, owner-managed and listed businesses. We are a member of RSM International, the 6th largest global accounting network with over 700 offices in 83 countries. Represented by Krish Soopramanien, Tax Director

Victanis www.victanis.com Victanis is a pan-European commercial advisory firm and strategy consultancy who supports corporate clients and financial investors with their growth strategy and international development, either organically or through acquisition. We advise, support and accompany European companies and investors in their business development, market strategy and the origination and execution of transactions. Represented by Marc de Thomasson, Director

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9 new Active members: Interiors Moschetti Ltd

SKINsoft

Web

Interior Design

Represented by Simon Baldeyrou, CFO www.deezer.com

Represented by Ivana Moschetti, Director www.imoschetti.com

JWD (UK) Ltd

Represented by Domitille Fourcade, Export Manager www.skin-museum.co.uk

Déjà Vu Inventories Ltd

Watchers and Jewellery Distributors

Blogmusik SAS

Property

Represented by Fatou Sidibe, Director www.dejavuinventories.co.uk

Expandys

International trade and development

Represented by Emmanuel Bisi, Director www.expandys.com

Represented by Delphine Prigent, Country Manager www.jwd.fr

Tie-Break Consultancy Limited Sports sponsorship, event creation & hospitality

Represented by Richard Walmsley, Managing Director www.tiebreakconsultancy.com

NH Hotels Hospitality

Represented by Michael Benjamins, Sales Manager www.nh-hotels.com

We did SAS NTIC

Represented by Raymond Guatterie, CEO website under construction

Recent Events

12th May: Chamber Annual General Meeting hosted by

The Chamber turns the corner: report of the Annual General Meeting There was a positive and hopeful spirit at this year’s AGM, when the members heard that the Chamber had made a small profit and increased its membership.

||| The Chamber has turned the corner, recording a small profit in 2010 following a deficit in 2009. It also announced a return to a positive balance of members. So when it gathered for its Annual General Meeting on Thursday, 12 May, at Reed Smith’s offices in London, there was a renewed sense of optimism, coupled with an appreciation of the measures that management had taken to enable this improvement to take place. A record number of 120 guests attended the meeting, and for most it was also their first chance to meet the recently appointed French Ambassador to the UK, HE Mr Bernard Emié, fresh from his tenure in Istanbul. In his address, the diplomat vividly described the remarkable political and economic partnership that now exists across the English Channel.

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The Ambassador said that just that day, Chancellor George Osborne confided to him ‘Never in my lifetime have we had such a good relationship between France and the UK’. To which Bernard Emié commented to the CCFGB audience: ‘It is a privilege to take up my post when relations are so good in both the political and financial spheres. And that is an outcome of what you (the French Chamber members) have been doing. I am aware of the Chamber’s commitment, history, effectiveness, and dynamism’. In his opening address CCFGB President Arnaud Vaissié had already described the Chamber as “incredibly dynamic” over the past year, despite the economic challenges that were still buffeting Britain. He stressed achievements, including the creation of new clubs

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and forums, the running of a survey of members’ attitudes to the Chamber in partnership with Ipsos Mori, the appearance at Chamber events of such high calibre speakers as London Mayor Boris Johnson, CBI President Helen Alexander, or Alstom Chairman & CEO Patrick Kron, and the recent launch of a dramatically improved interactive website. Mr Vaissié also noted a string of firsts, such as the Chamber’s first trade mission, sent to Birmingham and consisting of a 20-strong delegation accompanied by the then French Ambassador to the UK, Maurice Gourdault-Montagne. He also noted the CCFGB’s role in launching a new school – CFBL, the bilingual French school in Kentish Town, to be opened in September. ‘It is a wonderful example of innovation and co-operation between the Chamber and others’, he said. CCFGB Director Florence Gomez’s operational report added details to the President’s remarks. She announced seven new patron members, 22 new corporate members and two new board members. She commended the extension of the VIE platform from 10 to 16 desks; welcomed the growth in annual turnover to £1.6m; and noted the deepening ties between the Chamber and the British Chambers of Commerce (BCC) network. Florence Gomez particularly praised the hard work of the CCFGB team. Despite being downsized in 2009, she added, ‘the team has kept on developing new projects.’ Amongst these projects were a new publication, France-UK Express, written in French and distributed to 5,000 SMEs and all French Chambers of Commerce in France; and the launch at the French Ambassador’s Residence of the corporate social responsibility and the cross-cultural relations forums. The latter had published a guide to Anglo-French perceptions which was selling well! Florence Gomez noted the quality of the Chamber’s 30 events over the year, in terms of venue, speakers, attendance and food and wine – not least at the Dîner des Chefs with Hélène Darroze at the Connaught and Raymond Blanc at Le Manoir aux Quat’ Saisons. None of this would be possible, she added, without the generosity and loyalty of sponsors. As the first French chair of the Council of Foreign Chambers of Commerce in the UK (40 countries represented in total), she welcomed the tremendous response and networking opportunities generated by the first two international CFCC wine-tasting sessions in 2010. Within the CCFGB itself, Florence Gomez noted the trade mission to Birmingham, the Patron trip to Jersey, a cinema premiere sponsored by Cinémoi with guest speaker movie director Bertrand Tavernier, and a visit of the Olympic site sponsored by Think-London.

Bernard Emié • Recently appointed French Ambassador to the UK speaks at the Chamber’s Annual General meeting

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11th April: Climate Change Forum launch

Climate Change Forum launched by industry leaders Every company has an impact on greenhouse gas emissions, and can contribute to tackling climate change. This is why many leading firms have come together, under the Chamber’s auspices, to launch its Climate Change Forum.

||| The Chamber’s ‘Climate Change Forum’ was industry sectors that may potentially impact on the launched on the 11th April. Its inaugural meeting companies of the Chamber. This “collectivisation” of saw twelve prominent companies come together to environmental knowledge could help companies out discuss the opportunities and challenges facing their of any “silo-thinking” on environmental matters and business on the environmental front. could also help prevent businesses from unnecessarily Upon opening, the Chair, Richard Brown, Chairman reinventing solutions that had already been put into of Eurostar, suggested potential objectives for the forum practice elsewhere. that might be considered during the session. Firstly, that During the round table discussion, the participants expressed clear support for this new forum. They the forum act as a think-tank and attempt to exert a modest influence on the UK government; emphasised that while there are a number it was hoped that it might in time become of other comparable organisations bringing companies and organisations a collective lobbying platform in France The Chamber’s too. together, these alternative groups tend to Climate Change Secondly, that the members of the be organised sector by sector; by categories Forum is the such as energy, waste management or Forum might use the French Chamber of only significant, Commerce and its member companies transport. In contrast, the Chamber’s dedicated to better develop an overview of general new forum is more ambitious in its reach, Franco-British gathering together and unifying a variety company environmental policies and to body in which a cross-cultural develop suitable responses to the results of sectors beneath its umbrella using a dialogue on these traversal approach. found. It was hoped that gathering this matters might information would not only be useful The Chamber’s Climate Change be productively for the members of the forum but also to Forum is the only significant, dedicated pursued. highlight the extent to which companies Franco-British body in which a crossare already taking action to help tackle cultural dialogue on these matters climate change, and the issues they are might be productively pursued. The facing in doing so. value, the participants recognised, comes from this Finally, that the forum could help Chamber multi-sectoral, transversal character in the Forum’s members more widely by pooling ideas, knowledge scope and organisation –uniquely spanning France and Britain–, and it allows businesses to share and practical know-how on key issues. By using its collective expertise, it could better keep track their practical knowledge and their ideas for future of the relevant developments occurring within innovation, possibly helping to uncover potential

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Richard Brown, Chairman of Eurostar & Chairman of the French Chamber’s Climate Change Forum partnerships on the basis of shared concerns. The meeting put a particular stress on the great need for influencing policy on both sides of the channel. As environmental laws and taxation – for example in carbon accounting – are different in France and the UK, firms often encounter significant problems when doing business in both countries simultaneously and often struggle to “harmonise” policies between the two nations. The UK is often considered to be at the forefront in combating climate change, but much effective action is being taken in France too. Offering guidance on how to work more effectively and ’Cross-Border’, and to “compare and contrast” and “cross fertilise” policies and initiatives between the two Countries could also be of significant value. The forum resolved to draw up a three-part program to carry out its aims: to research company attitudes to environmental good practice; to research the legal and regulatory frameworks in detail and to draw the pertinent comparisons between French and UK culture and practice; and finally, to embark on a program to share best practice and experience, in the first instance between Forum members and wider Chamber members. To make people aware of what the big companies are doing about environmental policy and the commitments they are making to tackling climate change is a critical aspect of the forum’s purpose. I

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Most pleasing was the “spike in membership last year, an absolute record”: up to 135 new firms joined the Chamber in 2010; the appointment of Hannah Medioni as head of corporate communications; the launch of the new website, more outreach to members, as well as a fuller INFO and Directory. The Chamber received coverage for the first time in the FT at the awards ceremony in Mayfair, with CCFGB Ambassador Raphaël Ibanez. Lastly, Florence announced that, in a survey of Chamber members carried out by Ipsos Mori, 77 percent of our members expressed satisfaction with the Chamber’s performance and activities. Some 80 percent found the clubs and forums ‘very useful’, in many cases, an attraction to joining the Chamber. There then followed report-backs from chairs of Forums and Clubs. Mr Peter Alfandary, chair of the CrossCultural Relations Forum (CCR), said it enabled British and French business people to understand each other better. ‘Often we fall into traps of misunderstanding. The CCRF tries to bridge that gap’. Thierry Outin, chair of the luxury club, called his group “a networking platform to exchange experiences”. Topics at their breakfast meetings included investment in the Luxury sector, the internet, and evolution of the media. Cédric Filet and Nathalie Zimmermann-Néon, co-chairs of the SME and Entrepreneurs Club were proud to speak about the 100 companies who joined their 13 sessions, and their sponsorship of two street children from Cameroon. Mr Filet announced he was leaving position as he was moving to Brazil. Richard Brown, speaking for the newest forum on climate change, said that ‘our Anglo-French membership gives a unique perspective onto policy’ on either side of the Channel. In his address the ambassador pledged to continue the close associations of his predecessor with CCFGB, and promised to continue with trade mission visits. ‘Strengthening our industrial partnership is essential to re-launching our economies’, he said. After outlining the practical application of the November 2010 AngloFrench defence pact in Libya this year, he predicted that ‘the scope for co-operation in the defence sector is huge’. Yet ultimately SMEs ‘underpin our French and British economic relationship’. And alluding to the Chamber’s sterling record as hands-on advisors about practicalities, he insisted: ‘CCFGB provides essential support for their future development’. Formal proceedings ended with a finance report briefing, minutes and votes. Arnaud Vaissié and Peter Alfandary were re-elected president and deputy president respectively, after which drinks and food were served. I N.K

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Recent Events

20th April:

hosted by

Using the context to adapt the content: Media in a new e-era The Luxury Club held a fascinating and important round table about luxury and new media. The talk was both theoretical and practical

||| The Luxury Club breakfast, held on 20 April at the Dorchester Hotel, was entitled ‘Luxury and New Media: Communication Challenges.’ The meeting was chaired by the Managing Director of Hermès GB who is also the chairman of the Luxury Club Thierry Outin, and involved a Roundtable. The key participants were Arnaud de Puyfontaine, the Chief Executive of National Magazines, and Steve Hatch, the Managing Director of MEC UK. Thierry Outin began by drawing attention to some of the key issues for luxury businesses in an age of new media. A theme to which both speakers returned, was the challenge of maintaining brand quality and reputation when media are more diffuse. Steve Hatch referred to the ‘dramatic transformation’ in media, and while some luxury business managers regarded this proliferation as a threat, he regarded it in a positive light. Arnaud de Puyfontaine referred to a ‘great era of change’. He expected the rate of change to further accelerate. In this environment, advertisers shall aim to target individuals and niches rather than the mass market. The key to successful advertising is segmentation and market differentiation. Steve Hatch highlighted the importance of FaceBook, which now has 30 million users in the UK alone. Moreover, he expected the technology facilitating electronic media to advance exponentially. Mr Hatch focused on three forms of communication, namely paid communications; owned communications and earned communications. The combination of owned and earned communications is crucial for luxury businesses. The control of new media remains the key to the relationship between the luxury business and its advertising. The business is less interested in making

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Florence Gomez • Steve Hatch • Arnaud de Puyfontaine & Thierry Outin

30m

The number of Facebook users in the United Kingdom alone

money from the media than in ensuring it serves the brand values of exclusivity. The use of Google is likewise less about transaction than about facilitating the discovery of a brand. The value of data gathering and mining was also less significant in today’s market than media’s access to a large audience. Steve Hatch cited the need for ‘specific messages’. He said ‘behaviouralism was key’ and he counselled media to talk and track customers for research of their buying processes. ‘You need to understand the context to adapt the content.’ The audience, mainly key players from the Luxury sector, were delighted to participate and contribute to the topical issue of media in the digital era. I

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Recent Events

17th May: Seminar hosted by

Basel III discussion excites Chamber members’ interest What are the implications of changing banking regulations for small and large firms? That was the subject of a seminar sponsored by HSBC.

||| The Basel III regulations were established to ensure banks become more transparent and better capitalised. They are designed to prevent the re-occurrence of the financial crash of 2008, when Lehman Brothers collapsed, and other banks were bailed out. These rules have a primary impact on banks, and how they manage themselves, but, as the Chamber members who attended a seminar on 17 May at the stunning HSBC offices on St James Street discovered, the Basel III rules also impact companies whether small or large. The event sponsored by HSBC, was introduced by Martin Tricaud, HSBC’s main representative at the Chamber, the bank’s global head for multinationals. Mr Tricaud, stressed the bank’s commitment to its Patron membership of the Chamber and its intention to further develop that relationship. The floor was taken by Peter Alfandary, the Chamber deputy President, who expressed his gratitude to HSBC for the use of its splendid offices, which he observed had formerly served as a Gentleman’s Club, before being acquired by the bank. The event began with a brief synopsis of structure, content and conditions of Basle III, led by John Peachey, HSBC UK managing director and head of the financing solutions group. Mr Peachey explained how the new rules had evolved from Basel II, to tighten up the definitions and allocations of capital held by banks. Mr Alfandary introduced the panelists. The discussion, moderated by Mr Nick Kochan, Editor–inChief of INFO. was launched by John Grout, the policy and technical director of the Association of Corporate Treasurers, who questioned whether Basel III made such onerous demands on banks that their prices for lending would rise. This might have the result of making bank lending too expensive for all but the largest corporate. He observed the irony that the largest corporates had

The seminar panel least need of borrow, as they could issue their own bonds in the capital markets. This theme was pursued by Philippe Henry, HSBC’s European head of credit and lending, who anticipated ongoing pressure on bank costs as they seek to maximise the effectiveness of their capital. He also argued banks will need to know their customers better, as they tailor products more closely related to their needs, and to their risk profiles. The need to Know Your Client (KYC) was also highlighted by Jean-Luc Janet, managing director of Alliance Medical, a medical high-tech company. This company has longterm borrowings from the bank to fund research and Mr Janet was concerned how the price of money would be affected by the new regulations. The corporate view of Basel III was represented by Philippe Messager, EDF global head of financing and investments & administrator of the French Association of Corporate Treasurers. The final contribution came from John Peachey, who raised questions over banks’ ongoing ability to lend to smaller and riskier SMEs where the cost of capital will be highest. I

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Recent Events

10th May: Corporate Social Responsibility Forum with Panasonic Europe

Leading CSR approaches aired at fifth Forum meeting The Corporate Social Responsibility Forum met for its 5th session on the 10th May bringing together representatives from Panasonic Europe, Laurent Abadie, the Chairman and CEO, and Pamela Fandel, General Manager Environment, CSR & Production Support, to speak alongside Michel Doucin, the Ambassador responsible for Bioethics and Corporate Social Responsibility for the French Ministry of Foreign Affairs.

||| The Forum took place at the Chamber of Commerce offices and was excellently attended. The meeting was chaired by Christophe Gasc, BPM Alliance Manager, North East Europe, for IBM UK and David Glass, head of the corporate department and senior partner at Pritchard Engelfield. The focus of the meeting was Panasonic, a company which has maintained a long and distinguished history in the field of corporate responsibility. Ever since its

$79bn

The total turnover achieved by Panasonic in 2010

Christophe Gasc & Laurent Abadie

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creation in the early 20th century, Konosuke Matsushita, the company’s founder, had envisioned the company as maintaining a serious responsibility to society in its operations. Since then, the company has employed a famous set of seven core values guiding them to this day; improvement, gratitude, cooperation, honesty, contribution to society, adaptability and courtesy and humility. Although these values are well known to the Japanese, the Panasonic representatives hoped that the efforts of their CSR projects would further broadcast the importance of this company culture beyond the home territory. Employing over 366 million people and with a turnover in 2010 of $79 billion, the company aims to become the number one Green Innovation Company in the electronics industry by 2018, appropriately the 100th anniversary of its inception as a business. Laurent Abadie, the Chairman and CEO, of Panasonic Europe, said, ‘Panasonic’s philosophy is to drive for high quality. Sales is not an aim but a consequence of this philosophy.’ Pamela Fandel introduced the “Kids School – Eco Learning” program that is being implemented by Panasonic as a part of their pledge to develop ecologically sound solutions to lifestyle and business problems. The program is a pan-European initiative that aims to bring environmental education to children ages 7 to 11 on subjects such as climate change and biodiversity

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(L to R) Michel Doucin • Pamela Fandel • Peter Alfandary • Christophe Gasc • Laurent Abadie at the Chamber and also aims to foster employee engagement with the issue. In particular, he singled out the ‘Social communities. Using the internet as a platform, it Entrepreneurship Approach’, in which products are allows pupils and teachers to interact through online conceived as a response to specific problems and a teaching materials, embedded corporate materials, flexible model of management is adapted to benefit videos and picture diaries. So far 16,000 those who are in need so furthering the children have been educated using the social and environmental goals, along scheme including some 8,500 in Turkey with social dialogues and the use of Some 616 French and 4,500 in Romania. International Framework Agreements companies are Michel Doucin, one of the most to help negotiate with Global Union registered to the respected authorities on CSR in France, UN Global Compact Federations. spoke on the subject of France, and Mr Doucin noted that in 2001 compared to 172 how it aims to position itself within the several regulations were created to British businesses, a statistic world of CSR. He asserted that the UK make mandatory the reporting on demonstrating and France differ significantly in their environmental and social activities for France’s extremely attitudes on the matter. French listed companies and also that strong commitment the French Presidency was instrumental He said that the UK tends to approach to the issues of CSR through the dimensions of Human to assisting Kofi Annan in attracting CSR. Rights (for example deciding how to many large French companies into provide philanthropic services to the the UN Global Compact, an initiative poorest in society), ecological initiatives for businesses that are committed to and fighting corruption. He also noted that there is to aligning their operations with ten principles of human be found in the UK strong collaborations between the rights, labour, environment and anti-corruption. Some government and academics; a partnership that is not 616 French companies are registered to the UN Global so often found and across the channel. Compact compared to 172 British businesses, a statistic On the other hand, France’s strength lies in its demonstrating France’s extremely strong commitment development of solutions to the social aspects of to the issues of Corporate Social Responsibility. I

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Forthcoming Events

14th june 2011

TRAINING: Become an expert in spoken communication with Kingstree 09.00 – 17.00 £350 + VAT Trainer: Anne Constans, Consultant at the Kingstree Group At THE KINGSTREE GROUP OFFICES

The French Chamber of Commerce is organising a training with the Kingstree Group. This training is dedicated to senior professionals who want to develop their communication skills by making the most formal presentations using their own style in all critical meetings and communications. about ANNE CONSTANS Anne is a French national, bilingual in English and French who graduated in 1991 from the ISG MBA programme. She started with Kingstree in 2001 after

successfully completing the in-house training and passing the FSA exam. Anne advises her clients on the preparation for their strategic meetings, presentations to their boards and staff and the industry conferences they participate in. She is also instrumental in management roadshows for IPO and helps clients to get business by preparing teams for pitches. Anne covers various sectors such as financial services, retail, telecoms and pharmaceutical. Her portfolio of clients includes Astrazeneca, Ashurst, Cinven, KPMG, Morgan Stanley, Shell, Telefonica and UBS. Based in Paris, she is now in charge of Kingstree’s French subsidiary.

5th july 2011

Patron event sponsored by 18.00 – 23.00 FREE - Patron Members only

Pernod Ricard UK, as the main sponsor and BNP Paribas Leasing Solutions as the supporting sponsor, are giving the Chamber’s Patron members the fantastic opportunity to be present at the Premiere of Cendrillon. A new production by Laurent Pelly is always cause for celebration and the welcome arrival of the young French director’s Cendrillon (Cinderella) is no exception. Massenet’s score is enchanting and the cast brings together a brilliant team of performers as renowned for their style, wit and dramatic flair as they are for their exquisite singing.

Cast: Cendrillon - Joyce DiDonato, La Fée – Eglise Gutiérrez, Le Prince Charmant – Alice Coote. Conductor Bertrand de Billy. The event promises to be a memorable one as Patron members will enjoy an “apéritif dinatoire” in the Conservatory (privatised for the occasion) – a visit backstage and VIP seats. The Chamber would like to thank Pernod Ricard for being the main sponsor of this fantastic evening and BNP Paribas Leasing Solutions for being a supporting sponsor.

For more details or information about events, please contact Cécilia Gonzalez on cgonzalez@ccfgb.co.uk or on 020 7092 6641 or Elsa Bréchotte on ebrechotte@ccfgb.co.uk or 0207 092 6643

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Forthcoming Events

14th september 2011

Business Club Cocktail Sponsored by Société Générale Hambros

18.00 – 20.00 £35 + VAT per person at the sofitel london st james ‘International wealth planning and wealth management for UK residents non-domiciled’

We are happy to announce that our next Business Club Cocktail will be sponsored by Société Générale Hambros. On this occasion, we will have the pleasure to welcome Renaud Billard, Head of French Team and Géraldine Appert, International Wealth Planner as our guest speakers. Do not miss the opportunity to network with approximately 100 guests and benefit from the expertise of our guest speakers guiding you through alternative wealth planning structures.

About Société Générale Hambros Société Générale Private Banking Hambros (SGPB Hambros) is a private bank which has been providing a comprehensive wealth management service in the UK and overseas for more than a decade. Dedicated to high net worth individuals and families, clients benefit from the worldwide expertise and resources of Société Générale, combined with a high level of personal and customised service, investment capabilities and access to a broad range of products and services.

22nd September 2011

CEO Breakfast 08.00 – 10.00 £40 + VAT AT THE andaz HOTEL

Guest Speaker: Jean-Jacques Gautrot The Chamber is delighted to announce that Jean-Jacques Gautrot, CEO & Chairman of Areva UK will be the guest speaker of its next CEO Breakfast. He will update the audience on the energy industry in the context of the current nuclear issues. ABOUT areva AREVA supplies solutions for carbon-free power generation, and its expertise and know-how in this field are setting the standard. As the global nuclear industry leader, AREVA’s unique integrated offer to utilities covers every stage of the fuel cycle, nuclear reactor design and construction, and related services. The group is also expanding considerably in renewable energies – wind, solar, bioenergies,

hydrogen and storage – to be one of the top three in this sector worldwide in 2012. In the UK, AREVA has been active in the nuclear industry for more than three decades. Over the past two years, the group has stepped up its activity and, in partnership with British companies, become a key player in both the new-build programme and the clean-up and recycling of the UK nuclear legacy.

For more details or information about events, please contact Cécilia Gonzalez on cgonzalez@ccfgb.co.uk or on 020 7092 6641 or Elsa Bréchotte on ebrechotte@ccfgb.co.uk or 0207 092 6643

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Questionnaire De Proust Ann Widdecombe

fter studying at the Royal Naval School in Singapore, La Sainte Union Convent in Bath, Birmingham University and Oxford University, Ann started her career in marketing at Unilever in 1973. She then worked as a Senior Administrator at London University from 1975 to 1987. From 1987 to 1997, she was the Member of Parliament for Maidstone, and for The Weald and

Maidstone from 1997 to 2010. She retired from politics at the 2010 general election. Ann is well known as a former British Conservative Party politician but also because she has been a novelist since 2000. And since 2002 she has made numerous television and radio appearances, including as a television presenter. The flower I like:

hydrangea My favourite animal:

panda My favourite prose author:

Austen My favourite poets:

Thomas Gray, Rudyard Kipling, John Masefield My hero in fiction: Rudolph Rassendyll

My favourite heroines in fiction:

Anne Elliot My favourite composers:

I am tone deaf My favourite painters:

Michelangelo, Briton Riviére My heroes in real life:

The principal aspect of my personality:

contentment The quality that I desire in a man:

kindness What I appreciate most about my friends:

humour My main fault:

impatience My favourite occupation:

walking on Dartmoor My dream of happiness:

Heaven My greatest private misfortune:

losing my brother to cancer What I should like to be:

more patient The place I would like to live in:

where I do live My favourite colour:

dark green

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Mother Teresa, Pope John Paul II My favourite name: Cecily What I hate the most of all: offal Historical figure I despise most: Laying aside serious

evildoers such as Hitler, Oliver Cromwell My favourite food and drink:

Roast Lamb, Whisky & soda The military event that I admire the most:

Scipio’s thwarting of Hannibal’s elephants at Zama The reform which I admire the most:

Introduction of the Gregorian calendar The gift of nature I would like to have:

to sing in tune My present state of mind:

very contented Faults for which I have the most indulgence:

my own My motto: carpe diem

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