INFO ... 2010 / 2011 T � :
P K H A A K CEO of Alstom, addresses President of CBI at the on the 1.5 Billion treasure trove Chamber’s Dîner de la Rentrée Annual Financial Lunch
P G A K ESCP Europe comes top in What they mean for businesses Turning the World upside down FT rankings AFRANCE_INFO_AD.eps 10/11/09 11:40:14
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B,)%(&20(6:+(1B ;LQGG Arnaud Vaissié President, French Chamber of Commerce in Great Britain, editorial and Chairman & CEO, International SOS
elations between Britain and France are as warm as they have ever been. The meeting R and subsequent accord between the President of France and the British prime minister at the beginning of November was smoothly and effectively choreographed. The highlight and the most encouraging announcement was of course on defence, where the two countries are pooling resources in the interest of saving costs. That is a requirement for both countries and much will be achieved. But, ground-breaking as this is, it is far from the whole story. The defence deal is indicative of a realisation that the two countries have an over-riding interest in exploring co-operations. These may range in the future from industrial joint ventures through to even more forms of cultural and economic relationships. The pace of progress in building creative alliances between Britain and France, so long too halting, will now move up a gear. That is very welcome. The Chamber plays a role in this collaboration by bringing together leading British and French business people in friendly yet constructive forums, to enable them to understand each others’ economies, countries and companies. So the Annual Financial Lunch which took place in mid-November was hosted by a leading British captain of industry, Helen Alexander, the president of the Confederation of British Industry. Ms Alexander has an unparalleled familiarity and insight into British companies and management, and the mutual sharing of interests was beneficial to British and French managers alike. Meanwhile the focus of the address given by Patrick Kron to our “Dîner de la Rentrée” was the important contribution made by Alstom to the British market, and the opportunities he sees here for future collaboration between his company and British clients and providers. In an exciting and visionary speech, Mr Kron made clear that Alstom, while based in France, was a truly global company, with 90% of sales derived outside its home base. No review of today’s global economy can avoid reference to the recessionary pressures now facing all our companies and countries. We see from our Focus on Finance in this issue that state spending on infrastructure and on social budgets is being curtailed. This is giving rise to social tensions. But it also presents an opportunity – in admittedly difficulty circumstances – for companies to increase their share of the gross domestic product and enter markets and sectors they might not have expected. The Chamber will continue to play its role of bringing the French and British communities together in order to help our companies resume growth and improve their prospects. I
info - december 2010 / january 2011 - contents issue 192 / December 2010 - January 2011
Helen Alexander: guest The power of business: Patrick speaker at Chamber’s Kron at the Dîner de la Rentrée 74 Annual Financial Lunch 72
Anish Kapoor: Turning French banks take care The revenge of 61 the world upside down 53 with risk 37 the real economy
5 minutes with Success Story 58 Going back to basics: private client investment advice after the crisis 10 Jean-Claude Perdigues 32 Lars Clausen: Zoo markets a path to success 59 New rules for Credit Rating Agencies Managing Director of GDF SUEZ E&P UK Ltd 60 Emerging markets: the path Navigating the Storm 35 to future growth News in the City 36 Timeline of a crisis 13 Cuts sound clarion call to the city 37 The revenge of the real economy Culture 17 Profile: Arnaud Chupin pursues Crédit 39 How to raise working capital after 61 Anish Kapoor in Kensington Gardens Agricole CIB’s development in the UK the financial crisis 62 What’s on 41 When man and machine collide 65 Book Reviews News 42 Mixed messages haunt British banking 43 Not out of the woods just yet… 19 Low carbon energy pioneered The Mark of Distinction. Borrowing still tight for SMEs Wine Press 66 for the Olympics 44 Lightening the load Offer your staff and 20 VINCI and partners working on Lee Tunnel 46 Bankers of no resort? @ the Chamber... customers the best every day. EADS Defence & Security becomes Cassidian 48 Capgemini’s model of a banking future 68 Chamber news and new members Cinémoi to be launched on Virgin Media 49 The £1.5 billion treasure trove 71 First ‘Dîner des Chefs’ with Hélène Darroze at the Connaught 21 International SOS awarded China’s Ministry 50 Mind the gap – opportunities for of Foreign Affairs contract financing European innovation 72 The power of business: Patrick Kron 51 Banking on which investment banks? at the Dîner de la Rentrée Accor: change in executive management 52 How to shape the bank of the future 74 Annual Financial Lunch: Helen Alexander 23 Anglo-French Treaty may reap 53 French banks take care with risk talks about International Cooperation economic benefits 54 Make hay while sun shines! It may not last 76 Enterprising spirit still rules in Jersey 24 The Charles Péguy centre 55 New automatic pension schemes: 77 Forthcoming events 25 ESCP comes top in FT rankings What they mean for small businesses 27 UK Regional review 56 Tax - The Tide is Turning Questionnaire de Proust 28 Special focus on the Alsace region 57 Adapting in order to succeed 78 with François Ozon
Managing Director: Florence Gomez Editorial Commitee : Mark Beynon, Anaïs Cudi, Distribution : CCFGB members, Franco-British decision Editor-in-chief: Nicolas Kochan Xavier Denecker, Olivier Jouanne, Marion Laleve, makers, Business Class lounges of Eurostar, Eurotunnel Assistant Editor: Lawrence Joffe Anne Marnat, Andrew Moore, Jean Olivari, & Air France in London, Paris and Manchester. Corporate Communications Exec: Hannah Meloul Gherardo Laffineur Petracchini, Marcus Rebuck. Editorial and Publishing Offices : Graphic Designer: Prima Hevawitharane French Chamber of Commerce in Great Britain Contributors : Mark Beynon, Xavier Denecker, Advertising: David Lislet - Tel: (020) 7092 6651 Lincoln House, 300 High Holborn Jean-Christophe Fonfreyde, Bruno Grappin, Publications Assistant: Pierre-Olivier Lucereau London WC1V 7JH Angela Knight, Marion Laleve, Thibault Lavergne, Tel: (020) 7092 6600; Fax: (020) 7092 6601 Cover picture: © Stanislav Pobytov Andy Lees, Stephen Lewis, Christian-George Malissard, www.ccfgb.co.uk Discover Nespresso Business Solutions. Printed by: Headley Brothers Ltd Micha Missakian, Andrew Moore, Jean Olivari, Subscription: INFO is published every 2 months. Stéphane Rambosson, Jean-François Roubaud, To arrange a free demonstration, Prue Watson. please call 0808 100 88 44 www.nespresso-pro.com info - december 2010 / january 2011 -
UKfe10Info DecisionMaker 197x279 1 08/02/10 14:17 Patron Members of the French Chamber of Commerce in Great Britain 8PSMEXJEFSFBDI )VNBOUPVDI
GUIDELINES *OUFSOBUJPOBM404 October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info - december 2010 / january 2011 5 minutes with Jean-Claude Perdigues
Could you describe any major future challenges? substantial. We plan to invest in diverse areas in the UK One central challenge affecting long term investment where the group is strong worldwide, such as nuclear decisions is the decoupling of once-connected oil power production and underground gas storage. 5 minutes with and gas prices. Especially since the economic crisis, oil prices have remained relatively high while gas has Is GDF SUEZ growing in the UK? Jean-Claude Perdigues dropped because supply exceeds demand. This means Oh yes. In my own field, we have more than doubled less predictability. On the other hand, gas becomes the number of UK staff over the past two years. We have more attractive as prices fall, which in turn justifies about 100 staff and another 100 contractors. Nor is our new projects. merger with International Power the end of the story. It Actually, when you explore, you never know exactly is just a milestone. Plus one of our affiliates, Cofely, is a what you are going to find, whether it will be oil or gas, key investor in the energy needs of the 2012 Olympics. or a mixture of the two. Because of price decoupling, In short we have a very diversified and ambitious UK you have to be more selective and cautious, as you portfolio, and we want to grow, so no doubt people need a profitable break-even point. will hear more about us! That said, in the UK we benefit from a large and mature existing infrastructure, including offshore What is your UK turnover? transportation routes, treatment facilities and For my subsidiary, it is about £300m. We produce some Newly appointed in August as Managing Director of GDF SUEZ E&P UK Ltd, the UK division of distribution networks. Access to infrastructure is key to 10m barrels in the UK. GDF SUEZ dealing with oil and gas exploration and production, Jean-Claude Perdigues, 49, is unlocking existing potential, at tariffs that make sense. responsible for developing the largest British offshore gas project in 30 years. Here he shares The challenge is striking the right balance. How would you describe GDF SUEZ’s management his hopes and ambitions with INFO… culture? Are you saying gas is a thing of the past? Our profile differs from country to country: in France On the contrary, there is much potential. Gas could and Central Europe we focus on the domestic market, substantially help meet short term domestic UK energy less so here. First and foremost we are an energy What is the culture and structure of GDF? the UK. Here the high profile element is the coming needs. And in the longer term, the low CO2 emissions of company that covers the entire value chain from GDF SUEZ is very diversified and varied. It is prominent merger between International Power and the power gas tallies with state environmental goals. So currently upstream oil and gas production and power production in energy, environment, distribution of water, and production business of GDF SUEZ. That is what is most we are looking at the overall political agenda. There up to retail. We are now investing in many diverse UK providing services to municipalities and industry visible to the public eye. are already tax incentives for small fields, and for high business lines, including environment, water treatment across the world – and it is active in all these areas in My own job now is to manage the E&P business in the pressure, more challenging fields, where the break-even and waste management – all utility-oriented activities. UK. In fact it is a long and successful point is set higher. These are steps in the right direction, Embedded in our values is the idea of serving story – for 14 years GDF SUEZ has had but the authorities should introduce more incentives our customers, whether these be municipalities, E&P offices in the UK, and throught so we get the best out of existing gas reserves. governments, or domestic or retail consumers. We are that period we have been expanding. Most of all, we are excited about developing the very pragmatic and capitalistic. Worldwide GDF SUEZ My work entails getting involved as Cygnus1 gas field, one of the most important discoveries employs some 200,000 and throughout we focus on our an operator with offshore licenses in over the last 30 years but we also have other developments three main pillars, energy, environment and services. the UK and North Sea. to come, either as an operator e.g. Juliet2 or as a partner e.g. West Franklin3. Coupled with incentivisation from How do you run such a vast business? How would you typify the British Whitehall, this could yield results that would benefit us, We try not to get too centralised. To make this huge sector? the Treasury and the nation as a whole. boat manageable, flexible and customer-oriented, we Well, the UK oil and gas business have to delegate authority and allow our affiliates retains great potential. It is a mature French companies are becoming familiar in the UK, and appropriate autonomy. At the same time we operate province where people have been GDF SUEZ is one of the biggest. So why is it not better within the framework of a consistent culture. We producing for decades. True, the known in the UK? pay a lot of attention to the environment and ethics, received wisdom is that there is not First, unlike EDF, say, we are not really in the UK especially in the E&P sector where health and safety much more to be done, and the UK is domestic retail business. Apart from energy activities are key. We have some key drivers and management unlikely to be the location for giant and exploration, we work mostly in the power principles that we apply around the world – and Britain discoveries. But overall conditions are sector, as a producer. In terms of retail we service is no exception! I Interview by Nicolas Kochan relatively stable and the remaining commercial customers, but we don’t distribute to 1The Cygnus Gas Field is operated by GDF Suez, which also owns a 38.75% stake, Centrica has a 48.75% interest and Endeavour holds the remaining 12.5% interest. The field was potential is still very significant. domestic customers. However, the group is active in discovered in 1988 and lies at water depth of 76ft. The discovery is one of the largest in the Southern North Sea. The UK is important for long term water distribution, which is more visible. There are 2Juliet is located to the south of the Amethyst gas field, about 40 km due east of the investments; especially so as we fund currently already more than 10,000 people working Humber Estuary. 3West Franklin is a gas and condensate field to the west of the Franklin Field. The Jean-Claude Perdigues • Managing Director of GDF Suez E&P UK projects that may run for decades. for GDF SUEZ and affiliates in the UK, which is quite discovery was made in 2003 below a depth of 5,750m (vertical depth).
10 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 11 n e w s in the city
by Nicolas Kochan
Cuts sound clarion call to the City
ritain’s sovereign debt is trading at lower yields Bthan at any time in the last twenty years. It is lower than Germany’s, lower than any Western developed country. The reason: the markets and the City have given a major thumbs up to the government’s cost cutting exercise of 20 October. Why are the yields lower? There are two reasons. First, City bond traders believe the UK will be borrowing less as the British public sector shrinks. Second, because the markets believe that the chances are now remote of Britain defaulting on its obligations. Whereas Britain was once referred to in the same © O’vv flickr/Victor breath of Greece, now it is spoken of with reverence The City of London • the world’s largest financial centre in the Square Mile. Indeed, Britain’s government has been hailed as the defence, universities, Local Councils and Government AS A LONG-TERM PARTNER, most radical among the G20. It seemed a remarkable departments had their budgets cut. claim at the time it was made, some months ago, and Chancellor of the Exchequer George Osborne says WE STAND BY YOU THROUGH ALL YOUR STRATEGIC PROJECTS. it was based on the Coalition government’s proposal there is no ‘Plan B’, that is a fallback position if Plan A to swing the axe among the state-based part of the does not work, or does not find favour with the people. economy. It was also radical because it envisaged At the time of writing, the Coalition government does “At Societe Generale, we are committed to developing long-term relationships through strategic bringing the State’s share of the economy down in a not need a plan B. For it appears the people like plan short and sharp manner. A. There has been outrage in predictable quarters, dialogue and providing you with tailor-made services to meet your specific and changing needs. 157,000 employees The radical solution faces inevitable criticism. But but there has been just as much support for the Whether you are a corporate or a financial institution, we combine our strengths to bring you in Britain it has been mooted. It does not remotely government’s proposition that the Budget Deficit of 83 countries the right financial solution based on our global advisory approach, spanning M&A, financing, compare with the protests on the streets of Paris £154 billion needs to be tackled. The number looks all 32 million against comparatively modest pension reforms. The the worse when you look at Britain’s national debt of risk and capital management. Through our worldwide network and in-depth sectoral expertise, clients difference between British and French ways of doing £903 billion, or 62.2% of GDP, the highest since records we are here to accompany you in your strategic plans. Standing by you.” politics could not be starker. That said, the British began in 1993. story has hardly started and no-one can be sure that The fall in yield on government debt also reflects www.societegenerale.com the many people taking cuts to their benefits, their City expectations of sluggish UK growth over the next services and even their jobs, will take this lying down. period. This reflects the decline of the State as a catalyst Already we have seen the streets of London filled with for growth and private expenditure. over 40,000 protesting students. This Spending Review sounds a clarion call to Yet the statement of 20 October was every bit as private suppliers of capital to take up the slack. The savage and effective as the early claims. Some £81 billion more forward looking City financiers and markets will We stand by you will be cut from the state budget over the next three see opportunities for equity participation in Britain’s years. Everything from social and welfare spending, industrial sector. I N.K. Société Générale is a credit institution and an investment services provider (entitled to perform any banking activity and/or to provide any investment service except the operation of Multilateral Trading Facilities) authorised and regulated by the French Autorité de Contrôle Prudentiel “ACP” (the French Prudential Control Authority) and the Autorité des Marchés Financiers “AMF”. Société Générale is subject to limited regulation by the Financial Services Authority “FSA” for the conduct of its business in the UK. Details of the extent of its regulation by the Financial Services Authority are available from us on request. Société Générale benefits from the EC passport authorizing the provision of investment services within the EEA. This material has been prepared solely for information purposes and does not constitute an offer from Société Générale to buy or sell or a solicitation of an offer to buy or sell any security or financial instrument, or participate in any trading strategy. Not all financial instruments offered by Société Générale are available in all jurisdictions. This communication is not intended for or directed at retail customers. It is for professional investors only. Please contact your local office for any further information. © 2010 Société Générale Group and its affiliates. info - december 2010 / january 2011 - 13
SGCIP59_CORP_CRISTO_197X279_UK.indd 1 15/09/10 17:09:27 HELP END news in the city
CHILD Holding Goldman to account Bye-bye to big bonuses?
||| City high flyers are unusually nervous about their HUNGER bonus season, this year. A total of £7 billion is thought to be on its way into bank accounts. Bonuses are in the spotlight because of the Government cuts to welfare budgets and are preparing themselves for some political flak. That means bankers getting their heads down and hoping the abuse flows over them. David Cameron gave Your support can go a long way: a taste of the shock tactics in early October when he said, ‘I think the Chancellor was pretty clear when he said if £10 One week’s supply of these people go on paying themselves big bonuses and therapeutic milk, nutritional not lending money to the small businesses that need to products, vitamins and medicine get our economy going, he won’t stand idly by.’ I for a child*
£36 can provide a month’s For this relief... complete home treatment for a malnourished child* ||| For all the talk of bonuses, the Chancellor’s statement on 20 October was greeted in the City with £100 can provide market relief. He imposed an annual tax on the banks of £2.5 gardening kits for 10 families billion, a modest sum given the amount of profits and including seeds and tools* the hostility now felt towards institutions who British people still blame for the recession. That will not dent *Minimum cost but may vary according to many of their profit and loss accounts seriously.I changes in product prices © flickr/Morgaine
© S. Hauenstein Swan Paternoster Square in London • HQ of Goldman Sachs ||| INFO was glad to receive a signed copy of ‘La Banque: Golden opportunities to slot in... To discuss corporate partnership opportunities, please contact Action Against Hunger’s Corporate Team Comment Goldman Sachs dirige le Monde’, through on 0208 293 6134 or email [email protected] the post, signed by the book’s author Marc Roche, You can make a credit card donation over the phone, online or by completing the coupon French correspondent for Le Monde in the UK. This is a Call: 0208 293 6134 or donate online: www.actionagainsthunger.org.uk brave attack on the world’s most powerful, (the author would say insidious and wicked) investment bank. We have heard rather less from the bank that is famous for boasting recently, suggesting they may be learning Yes, I would like to make a donation to Action Against Hunger some lessons from their unhappy recent past. I Here is my gift of £100 £250 £500 £1,000 other £ In sickness and in wealth Name Address ||| In these bleak times, City Post code women (but not only women) We will not pass your details to any other organisations. were pleased that Katrin © Matsuda flickr/Yukihiro We would like to send you information about our work in the future but will not do so unless you tick this box. A traditional vending machine Radmacher, a wealthy German I enclose a cheque/postal order (payable to Action Against Hunger UK) heiress, got one up on her ||| London was amused to hear that you can now Please debit my MasterCard Visa Amex Switch CAF Card misbehaving French husband buy gold coins through a vending machine. A clever CAF Cards and charity vouchers Nicolas Granatino, when the entrepreneur is installing the security-proof machines are not eligible for gift aid © flickr/John Linwood Card No. British court (for the first time) for the super-wealthy in financial centres round gave her prenup agreement legal force. The result will Europe, so you can take advantage of a rising gold Start date / Expiry date / Issue No. Switch only change the outlook for canny partners in a British price, with your Coke or Mars bar. Whatever can we marriage for good. I expect next? I Signature Date
I am a UK taxpayer and want Action Against Hunger UK to treat all my donations from 06/04/2004 as Gift Aid donations until further notice. NB. You must pay an amount of income tax and/or capital gains tax equal to the tax we reclaim on your donations, currently 28p for every £1 you give. info - december 2010 / january 2011 - 15 Please send your donations and coupons to FREEPOST ACTION AGAINST HUNGER SE10 8JA
End Child Hunger ad - 05.01.indd 1 16/11/2010 11:36:33 @ the chamber... news in the city
profile
Arnaud Chupin pursues Crédit Agricole CIB’s development in the UK
London is the main hub of Crédit Agricole CIB’s Fixed Income Markets activities. Now Arnaud Chupin says the bank wants to sell more of its services to big UK companies and institutional investors.
rnaud Chupin is a great fan A of London. The man who heads up Crédit Agricole CIB’s UK operations says, ‘London is clearly the capital city of Europe for capital markets. It is easier to attract people, it is more flexible.’ Mr Chupin says he believes there is still a strong local demand for capital markets products and structured financing solutions and he is seeking to position Crédit Agricole CIB to meet it. He knows the capital markets areas in great depth. Having started his career in Paris, Arnaud Chupin has held a number of positions at Crédit A great fan of London • Arnaud Chupin Agricole CIB, from Commercial manager in Sri Lanka to Head of the Swaps desk in Tokyo. origination capabilities in London. This gains Early in the 90’s he took charge of the Group’s European efficiencies and enables the bank to adapt to changes futures operation, firstly based in Paris and then in in market trends more quickly. Chupin highlights that London. He moved on to become Senior Country Officer over the years Crédit Agricole CIB has built strong (SCO) of Crédit Agricole CIB’s business in Italy in 1999. The relationships with British Corporates and Financial country being the second retail market of Crédit Agricole Institutions and remains committed to assist them Group made this a key position. in their development. Parallel to this he underlined CREATIVE ANIMALS Today, as SCO, he has charge of Crédit Agricole the leading role of Crédit Agricole CIB in supporting CIB’s business in the UK. Turning to the role of KKR’s acquisition of Pets at Home, a transaction which Crédit Agricole CIB in the UK, he says it operates reopened the European Leveraged Finance market for ZOO Communications is a truly multi-disciplinary design and marketing agency as a ‘classical foreign bank in a European country. underwritings in March 2010. Arnaud Chupin also ADVERTISING specialising in the Luxury and Travel industries and have a knowledge of promoting French brands in the UK. ZOO has over 20 years’ experience and a never ending desire We target UK clients for what we do well, namely illustrates Crédit Agricole CIB’s commitment to the to create and innovate with new technology across an ever-expanding portfolio of PRINT DESIGN structured finance and capital markets. We offer these British economy by listing many UK infrastructure interactive media such as iPad and iApps. services to very large companies. We also offer access projects that the bank recently financed: Southmead CORPORATE IDENTITY We would love the opportunity to discuss what we could do for you, to our global network to clients.’ He also notes that Hospital in Bristol, M25, Gatwick Airport and the please call Lars Clausen on +44 (0) 20 8541 0800 or email [email protected] the UK is a platform for many of Crédit Agricole CIB Future Strategic Tanker Aircraft project (MOD). This WEBSITE DESIGN & STRATEGY business lines, in particular Fixed Income Markets demonstrates Crédit Agricole CIB’s commitment to and Structured Finance.’ the UK. “We are proud to finance these projects that E-MARKETING The bank is concentrating its structuring and will help the country’s economic recovery.” I N.K
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State of the art • The new low-carbon energy centre at the Olympic Park unveiled by Boris Johnson (inset)
||| London Mayor Boris Johnson officially unveiled the state-of-the-art low-carbon Energy Centre in the Energy Centre Facts Olympic Park on 19 October. Accompanying him was • An initial capacity of 46.5 MW of heating and 16 Gérard Mestrallet, Chairman and CEO of GDF Suez, MW of cooling who will own and operate the energy-efficient new • 45m tall at its highest point facility, and the CEO of the Olympic Delivery Authority 7KHEHVWZD\ (ODA), David Higgins. • 5 cooling towers, and 2 hot water boilers each The Energy Centre will generate electricity and weighing around 60 tons WRWDUJHW deliver energy across the site, well before the Games begin. The project is the largest such scheme to be built locally. We want to encourage more energy centres such so far in the UK. Designed, financed and built by Cofely, as this one through the London Green Fund, which will the French a subsidiary of GDF Suez, the centre will channel excess offer loans for innovative infrastructure projects.” heat produced during electricity generation, towards ODA Chief Executive David Higgins said: “The heating and cooling buildings. Besides its five cooling opening of the Energy Centre is a significant milestone LQ/RQGRQ towers and two boilers weighing some 60 tons each, for the Olympic Park and demonstrates the sustainability it will span approximately 16km of community energy features that underpin this project. The centre will deliver networks for the new buildings and communities that a lasting legacy of green power for generations to come 0HUU\&KULVWPDVDQG+DSS\1HZ ZZZLFLORQGUHVFRP LQIR#LFLORQGUHVFRP info - december 2010 / january 2011 - 19 news news VINCI Construction Grands Projets and partners are breaking ground International SOS, the group chaired by Arnaud Vaissié, awarded China’s on the Lee Tunnel shaft site Ministry of Foreign Affairs contract ||| Three of the country’s leading civil The Lee Tunnel will help prevent 40 ||| International SOS has been At the signing ceremony in engineering contractors − Morgan Sindall, per cent of the approximately 39 million awarded the contract to provide Beijing on 17 September, Yang VINCI Construction Grands Projets and tonnes of sewage which enters the River comprehensive medical and Jiechi, Minister for Foreign Bachy Soletanche (MVB) – are working Thames and River Lee each year from 57 security assistance services to Affairs, acknowledged that together to deliver the £635m Lee Tunnel. overflow points. Construction started the People’s Republic of China, significant risks exist for their The joint venture partners have at the end of September and tunnelling Ministry of Foreign Affairs (MFA). global workforce when they collaborated in the past on some of the work will start in 2012, with the project Under the new agreement, MFA work and live abroad. Laurent UK’s highest profile projects, and on due for completion in 2014. Chinese diplomatic personnel Sabourin, Group Managing Thursday 30 September they broke ground The tunnel will be Thames Water’s stationed abroad and their Director of International SOS, on the new four-mile sewer. As wide as biggest engineering project to date. families can access International said of the contract: “China’s three double-decker buses, this tunnel will Debbie Leach, CEO of enviromental SOS’s 24/7 assistance services foreign affairs policy is highly be the deepest ever to be constructed in charity Thames21 said: “Currently the from their 25 global alarm centres influential as it emerges as London. It will prevent 16 million tonnes sewage going into the River Lee kills fish and receive medical treatment a rising power backed by its of sewage overflowing into the River Lee and other aquatic life, in turn affecting and support at International SOS robust economy, an engine of each year. The tunnel will take discharges Martin Baggs • the birds. Once the sewage has gone, there clinics worldwide. world economic growth. We CEO Thames Water Yang Jiechi • Chinese Minister for Foreign Affairs from London’s largest combined sewer will be many more opportunities for the They can also obtain pre- are very proud to have the overflow at Abbey Mills in Stratford, east London, for community to get actively involved in improving, travel advice, security and medical alerts and be opportunity to support the MFA, which is a testament treatment at a now-expanded Beckton sewage works. enhancing and enjoying this beautiful river.” I evacuated in a serious medical or security incident. to the strength of our value proposition.” I EADS Defence & Security changes name to Cassidian Accor’s Board of Directors announces a change in executive management ||| EADS Defence & Security announced on the 17 The new name comes from the Latin terms September 2010 its official name change to Cassidian. “cassida” (helmet) and “meridian” (the imaginary line ||| Under the leadership of Gilles Pélisson, Accor has continue to act as Chairman of the Board of Directors, The announcement was made by EADS and by Cassidian running north and south). It symbolises worldwide undergone a radical transformation in the last five in a non-executive capacity, until January 15, 2011, on CEO Dr. Stefan Zoller. protection and security, thus reflecting the Cassidian years. The demerger of the services and hotels business which date Denis Hennequin will assume the position Cassidian remains a division of EADS and believes that claim, ‘defending world security’. Cassidian has also has been successfully completed and of Chairman & CEO of Accor. it can market its large portfolio of security systems more introduced a new logo consisting of the globe with the company is back on track for growth, Philippe Citerne, Vice-Chairman of effectively by establishing a clear-cut profile. “Our business is surrounding and protecting hands. The company has with sharply improved results. Accor’s Board of Directors, said: “The Accor is now moving changing. So are our customers. Especially in the civil markets started to use the new name and logo immediately, Accor is now moving into a new phase Board is unanimous in thanking Gilles which we address with our security products, it is essential to although its subsidiaries are retaining their present in its development, during which the into a new phase Pélisson for his crucial contribution to be perceived as a strong brand,” says Dr. Zoller. names for the time being. I definition of priorities and their execution in its development, Accor’s development. Over the last five will be key factors in its success. during which years at the head of the Group, Gilles On the occasion of the Board of the definition of has successfully led every stage in the Cinémoi to be launched on Directors meeting on November 2, 2010, priorities and their Group’s transformation, and in this way London’s best cheesemonger Time Out Virgin Media the Board and Gilles Pélisson, Chairman execution will be key has made an enormous contribution & CEO of Accor, recognised the strategic factors in its success. to strengthening Accor’s position as ||| After its first bold move in 2009, with the launch of divergences between them, leading a world leader and improving the the Cinémoi television channel on Sky (channel 343), them to organise the departure of Gilles Group’s financial performance against a the promoter of fine French Films on the little screen Pélisson as of 15 January 2011. backdrop of economic recovery”. has announced they will be broadcast on Virgin Media The Board of Directors has therefore terminated Gilles Pélisson said: “I am proud that Accor, now (channel 445) from early December. Gilles Pélisson’s appointment as Chief Executive Officer refocused and in the best of health, can take full Delicious and unique To celebrate its launch, Cinémoi will be available December and appointed Denis Hennequin as Executive Director advantage of the economic recovery. I have every CHEESES 2010 to January 2011 with diverse and exciting selection of the with effect on December 1, 2010. Denis Hennequin has confidence in the successful development of Accor to impress your guests greatest French films, for 12 hours a day from 3pm to 3am, all been a director of Accor since 2009 and Chairman & and Edenred. I would like to thank most sincerely the for any event with English subtitles. As an independent channel in the world CEO of McDonald’s Europe since 2005. Yann Caillère women and men all over the world who worked with www.la-cave.co.uk 08451088222 of media, Cinémoi has dedicated itself to bringing glamour, will retain his position as Deputy CEO. me on this vital transformation that has given the style and quality programming to the UK audience. I To ensure a smooth handover, Gilles Pélisson will Group a strong base on which to build its future. I 20 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 21 news news The Caravan of Hope 2012 Bilateral ||| The SSL White Horse Charity buys horses in the 14 times champion of France in ‘driving horses’ or ‘attelage’, Camargue, ride them across France and part of Mr Gérard Ste Beuve, is very kindly choosing the two England, and, at the end of the long ride, donate them draught horses for the association and training them to to RDA Centres (Riding for the Disabled Association be both ridden and driven free of charge. They have just and similar centres in France such as the Fondation been ‘voted in’ by the British Community Committee and Anglo-French Treaty may reap economic benefits Claude Pompidou, Centre de Kerdreineg in Brittany). are pleased to be members of the “British in France”. The As part of the riding team, they take French and British Fondation d’Entreprise France Télévisions have assured ||| Few can doubt that the Anglo- implications before the respective young people from disadvantaged backgrounds or the SSL of their intention to continue to support them. French military declaration of 2 ministries of defence have decided with social problems and help them to get their lives France 3 covered their progress across France on their November represents a milestone on allocations”, he commented. “Yet working by enabling them to care for and ride the news programme I in bilateral strategic and diplomatic one area that arises is the future horses during the six month journey. relations. Commenting on the development of unmanned aerial The SSL are planning and fundraising their 3rd project, Although the Caravan of Hope project is not until treaty’s centrepiece, a rapid reaction vehicles (UAVs) or drones”. “Currently The Caravan of Hope 2012. This new project has the same 2012, we need donations NOW in the UK! Combined Joint Expeditionary Force French, Spanish and German aims as the two previous ones, but they will be using two If you would like further information or would (CJEF), UK Defence Secretary Liam companies are collaborating on UAVs, covered western style wagons instead of escort vehicles. 5 like to make a donation, please contact: info@sllassoc. Fox said it made ‘perfect sense’ to put so with these new agreements it seems other Camargue horses will be ridden by the young people com, or Jakki Cunningham on 0207 482 5673/07946 British combat troops, including the logical to open up this area to British and team leader. Their new and third aim is to leave as 098 442 - [email protected] for UK enquiries and SAS, Royal Marines and Parachute firms as well.” small a carbon footprint on the project as possible by Isabelle Segura on 00 33 (0)5 61 82 55 31/00 33 (0)6 08 Regiment, under French command. Besides the 6,500-strong CJEF, being completely environmentally friendly. 02 56 45 - [email protected] for enquiries relating to the The Daily Telegraph defence which will begin land and air Amongst their many and kind supporters: saddles, French side of the charity. All our literature is available analyst, Sean Rayment, concurred, exercises next year, the Anglo-French bridles and saddle cloths were given to them by the in French. describing the deal as essential. “The © flickr/Anguskirk treaty also provides for: an integrated The Parachute Regiment Cavalry Regiment of La Garde Républicaine in Paris. The French and British have similar sized aircraft carrier strike group for the armed forces”, he added, “and France’s military expenditure early 2020s; a joint nuclear weapons facility at Valduc in hello, goodbye... is greater that the United Kingdom’s, but not by much. From France and another development centre at Aldermaston; a like-for-like view Britain is far closer to the French military mutual support on military transport aircraft, notably he French Chamber of Commerce would like to welcome new members who have just joined us. We than the United States.” the Airbus A400M; spy drones to enter service after 2015 Twould also like to express our gratitude to members who have made outstanding contributions to the In the longer term, moreover, the deal signed by and combat drones after 2030; a ten-year strategic plan to Chamber, but who are now moving on to different work or to retirement. French President Nicolas Sarkozy and British Prime cut 30% off the costs of complex weapons systems; and a Minister David Cameron could signal a sharing of cyber security framework to counter marine mines and Laurence Dubois Destrizais munitions and commission of new weaponry, to the enable French use of British refuelling facilities. Given ||| Laurence Dubois Destrizais, new Minister Counsellor for Economic and Financial benefit of defence firms on both sides of the Channel. General Sir David Richard’s 14 November remark that the Affairs. Following Jean-Pierre Laboureix’s departure in the summer, Laurence Dubois One defence industry source indicated reasons for some battle with Al Qaeda may go on indefinitely, British and Destrizais has taken up her post as Minister Counsellor for Economic and Financial caution, however. “The treaty was at the political level, so French armed forces will probably have enough on their Affairs at the French Embassy on 15 October 2010. Coming from the Treasury, she has a it would be premature to comment about commercial plates for years to come. I very strong background in international and multilateral affairs, as her previous posts include, most recently, Minister Counsellor for Economic Affairs at the French Permanent Laurence Dubois Representation to the OECD and French Delegate to the Development Assistance Destrizais Committee, as well as Permanent Delegate for France at the WTO in Geneva. I Expatriation – wave of the present, and future? Micha Missakian appointed to the French banking desk ||| Forget Gene Kelly’s American in Paris – recent evidence were France’s Christian Roudaut and Britain’s Jonathan ||| Micha Missakian, Ernst & Young France Partner, transferred to the London office last suggests that French and ‘Brits’ prefer to explore life Fenby, respected authors and journalists who have July 2010 to implement the French Banking Desk. on either side of the Channel themselves. Yet while lived as expats in each other’s countries. Micha is a Commissaire aux Comptes and holds a Master in Financial Markets from the typical French migrant settles in London and its Paris Dauphine. He has been serving large French Financial institutions for 17 years. In environs the English Francophile seems more drawn to Attitudinal sea-change 2007, he created and then supervised during 3 years the French Banking Desk Americas the countryside. Furthermore the French are only now Roudault vividly described how French attitudes had in New York. coming to accept ‘expatriation’, whereas Brits have been changed. “The cliché was that expats were exploitative Micha Missakian This appointment in the UK is part of the Ernst & Young’s commitment to strengthen relocating since time immemorial. nabobs, mercenaries of finance in London, traitors to through the French Business Network a close business relationship with French These insights emerged from the Institut Français’ their country, or madmen who chose exile because there companies abroad in order to assist them in their growth process. I discussion on Expatriation, held on 7 October and was something wrong with them. But the general view moderated by Etienne Duval. Principal participants has changed radically in the past two decades. Now new 22 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 23 news news Schools emigrants are normal people, just like Dordogne and now in France’s other French.” southwest for the lifestyle.” ESCP comes top in FT rankings French expatriation grew during Added one contributor from the with late 1990s with European floor, a Frenchman resident in London: This year is proving quite a bonanza for ESCP Europe Business School. The School has won a string alignment, said Roudaut, whose latest “There is a flexible jobs market here, book surveys the 2.5m mainly young unlike in France, and the UK represents of awards, thanks to a combination of core values, flexibility and openness to new ideas, Director French who now live abroad. That the first step to globalisation. You can Professor Patrick Gougeon told INFO’s Lawrence Joffe. still lags behind the estimated 5m be in a very international world just British expats, for as Fenby explained, © flickr/dovima_is_devine_II two hours train from Paris. The change “Brits have a lot of developed English- ‘An American in Paris’ • 1951 is really startling.” ||| Patrick Gougeon, Director of ESCP Some 3,500 students from 90 different speaking countries to go to; the Roudault stressed the ethnic Europe Business School in London, nationalities populate ESCP Europe’s five French have fewer.” and social diversity of the new French emigrants and had barely got his feet under the campuses – Paris, Berlin, London, Madrid wished that “more in France would listen to what we proverbial table when the Financial and Turin. Often they spend each year of their Should I go or should I stay? have to say”. While negative factors drove expatriation Times ranked ESCP Europe as the best three-year courses on a different campus. There remains an asymmetry between British and – like frustration at French red tape – Roudault also business school to study a Master in “We are reaping the rewards of the French motivations, added Fenby. “Many French in called expatration a “win-win situation where you Management degree. The Financial efforts that others made”, says Gougeon. London came to better employment opportunities”, succeed with a good experience, and with a poor one, Times announced its 2010 league table A long and proud heritage helps too. he said, “Yet English friends in France settled in the you appreciate the good things when you return.” I on 20th September, and with it the Founded in 1819, the École Supérieure de School moved into first place in the Commerce de Paris was the first French world for its innovative, cross-border school to teach business studies. Recently management programme. it merged with management pioneers, To celebrate the news, the alumni of EAP, Ecole Européenne des Affaires, the School hosted a champagne evening founded in 1973. Following the success of The Charles Péguy Centre, where French visitors can integrate and charity auction at the Sofitel Saint a new master programme in “Marketing James Hotel on Friday 19th November. The Patrick Gougeon and Creativity”, Gougeon is now keen to event was attended by His Excellency Maurice Gourdault- roll out a joint programme between London and Madrid ||| Since its creation in 1954, the Charles help in 2009, and already more than 800 Montagne, the French Ambassador to the UK. ESCP Europe campuses on Energy Management. Péguy Centre has welcomed French people since 1 January 2010. One fifth of them have Only weeks later ESCP Europe notched up another Such innovation is typical of ESCP Europe London. aged between 18 and 30 years old who come no qualification, another 20% have an A- success, when the Financial Times positioned its “We offer a truly pan-European business environment and to visit or are living in London, and helps level or Certificate in Vocational Training, European Executive MBA programme into the fifteenth see ourselves as part of a European edifice”, comments them to integrate in the English capital. On 30% have a second Bachelor’s degree and a place worldwide and first for the career progression Gougeon. “Firms welcome our graduates’ flexible 10 November 2010 the CPC celebrated its further 30 % hold a Master’s level degree. opportunities offered to its graduates. So what makes attitude and their ability to speak so many languages, move to brand new premises in Old Street, For more than 20 years, the CPC has ESCP Europe Business School, with a campus in London especially so, it seems, at a time of recession”, he adds. built in order to satisfy increasing public developed an employer network. About sited on a former seminary, such a goldmine? ESCP Europe is accredited by the 1AACSB, 2EQUIS and demand for their services. half of the jobs on offer are related to The European dimension of the School is one 3AMBA. Past alumni include Jean Pierre Raffarin, former Not only will the CPC be able to offer Charles Péguy tourism, hotel business and catering, which factor, suggests Gougeon, and the London campus is French Prime Minister, Christian Porta (who graduated members better equipment, such as advanced (1873 - 1914) typically suits young French people who an essential asset: “We enjoy the unique advantages of in 1984), Chairman and CEO of Chivas Brothers, and computers and wifi, but members will also be are still developing their skills and may not being in London... even the food and pubs!” he jokes. Nicolas Petrovic (1991) CEO of Eurostar. Others include able to enjoy much more spacious rooms. The CPC was necessarily be fluent in English. As regards the other London is a hub of the Anglo-Saxon business culture, Arnaud de Puyfontaine (1988) of Merrill Lynch Wealth taken up by the Centre d’Echanges Internationaux in proposed jobs, they are related to various sectors: of the dominant normative enterprise model” he says. Management, Catherine Petitgas (1983) Trustee of the 1983, and is strongly backed by the French Government’s retailing and commerce, administration and IT, and a Yet equally Continental students learn to see things Whitechapel Gallery, Sylvie Freund-Pickavance (1988) European and Foreign Affairs Department and the good number of services. “from a global perspective”, says Gougeon. ESCP Europe Business Director at Value Retail Management and French General Consulate in London. It is far easier for students to travel abroad today London’s challenging combination of studies means Louie Beatty (1989) Managing Director of Piggyback. A Everybody can become a CPC member for a £60 fee thanks to “grandes écoles” and universities’ networks. students can fit in with any business environment, roll-call, which itself seems worth celebrating. I a year. Each member can then enjoy daily job offers, However, this seems less the case for those who are whether in Asia, Latin America or Africa. ESCP Europe runs www.escpeurope.eu and an employment consultant can help him or her no longer students. And this is the role assumed by numerous programmes and is cosmopolitan in character, 1AACSB International − The Association to Advance Collegiate Schools of Business is an association of educational institutions, businesses, and other organisations devoted to the revise his/her CV, train for job interviews, gain access the Charles Péguy Centre. Essentially it enables young too. Gougeon himself is French and in his previous advancement of management education. 2EQUIS is the leading international system of quality assessment, improvement to good addresses and get advice on how to improve people freshly propelled into their professional life to assignment he headed the School of Management at the and accreditation of higher education institutions in management and business one’s English or find accommodation. find a job through the organisation, especially through Asian Institute of Technology in Bangkok; his predecessor administration. 3The Association of MBAs (AMBA) is the international impartial authority on postgraduate More than a thousand members enjoyed the CPC’s use of CPC’s networks. I as London director, Davide Sola, was Italian. business education. 24 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 25 news uk regional review Spending cuts? The With free offi ce space and consultancy support, Future Transport Strategic Aircraft part.” He predicted significant news is less grizzly (FTSA). The first of 14 FTSAs will openings for Ulster exports to technology businesses can’t wait to move to Wales. in North Wales! enter service with the RAF late next European markets, and noted that ||| Few were year. Wings for the A400M itself are SIAL 2010 helped provincial firms celebrating after made in Filton, Bristol, across the keep abreast of global trends. hearing the UK Severn from Wales. I Some 150,000 trade visitors from g o v e r n m e n t ’s around 200 countries could sample long awaited the wares of up to 6,000 exhibitors I spending review Ulster firms hunt in late October. Yet workers at the opportunities at Broughton Airbus plant in Flintshire, Paris food show Scottish firm North East Wales, were exceptions. teams with Total in ||| Every two years Paris hosts the Shetland gas bonanza world’s biggest food ||| An Aberdeen-based and drink exhibition, offshore engineering © flickr/Aergenium and this October SIAL company has won a 2010 was honoured by £158m contract with a particularly strong Northern Irish Total E&P UK, British contingent. Twenty companies from subsidiary of energy all over Ulster attended the four-day giant Total France. From 2012, it The first A400M, surrounded event. Together they represent over was announced in October, Subsea by EADS employees 60 per cent of the province’s food and 7 will start installing the first of Their cheery mood followed drink industry, a sector that generates 141km of pipelines in the Laggan Prime Minister David Cameron’s more than £3bn annually. and Tormore gas fields, located announcement that they would help Invest Northern Ireland assisted in challenging 600m-deep waters build 22 of Airbus Military’s A400M 17 of these firms and put them in 125km west of the Shetland Isles. aircraft. The airlifter, nicknamed the touch with European supermarkets Grizzly, is a four-turboprop beast and foodservice organisations. that will ferry Britain’s armed forces Invest NI also ran a stand to promote around the world. red meat and organised a business North Wales Assembly member, mission to bolster ties with existing Mark Isherwood, said this news customers and seek new buyers. confirmed the skill of workers in Broughton, who he predicted would “make great strides in securing the defence of the nation”. He also + Lynne © flickr/Peter Shetland Isles welcomed the economic boost that investment in North East Wales Some analysts predict a second would bring. North Sea bonanza that could The A400M programme entered generate thousands of local jobs. its industrial phase in 2006, and © flickr/CocinasCentrales.com Subsea 7 currently employs 5,000 now the pan-European Airbus Parisian Demonstrations at SIAL people worldwide and it has Military is eyeing opportunities for Alastair Hamilton, Invest NI collaborated with Total on past North A400M exports to India. Broughton Chief Executive, was “immensely Sea projects. This lucrative Franco- manufactures wings for the Grizzly’s encouraged to see such a strong Scottish deal comes 40 years after aerial refueling sister aircraft, the representation of local companies the building of Shetland’s massive To apply for Access Wales Airbus 330 MRTT, also called the from virtually every sector taking Sullom Voe oil and gas terminal. I T. +44 (0)1443 845 500 ibwales.com/accesswales26 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 27 IBW Arab Chamber of Commerce Ad.indd 1 08/04/2010 10:49 regional feature: alsace regional feature: alsace Fast Facts • 1st region for export per capita • 1st for employment generated by foreign investments • 2nd diplomatic center in France Alsace: • 3rd scientific cluster in France your European business catalyst Alsace, the north-eastern region of France bordering Germany and Swiss, has on many accounts been a long-time favorite choice for foreign companies seeking a location for their activities on the European continent. Among the many assets attracting companies into the region: Services Alsace International Alsace International is the organisation for the economic promotion of Alsace. It is the one-stop-shop An Outstanding Market Access combined to French flair and creativity. Being naturally Franche-Comté region. www.vehiculedufutur.com for international companies seeking to develop their Located along the Rhine, the long-time major bilingual, their command of English is much better • “Fibers Innovative Cluster” focuses on the European business from an Alsatian base. commercial waterway of the continent, it is central to than the French average. Quality of the workforce has development of fibers (wood, paper, textiles, AI supports you all along your project: Europe’s main concentration of population, industry, continuously come as N°1 satisfaction item in surveys composites) through innovative projects, together • help in your location search, advice on public funding investment, education and research. Most western conducted with foreign investors. with the Lorraine region. www.polefibres.fr programs European markets lie within driving distance, giving • “Alsace énergivie” works on the development of • organisation of your “look & see” trip local companies an easy reach to a large share of Internationally recognised research • introduction to strategic regional partners Europe’s purchasing power. Alsace belongs to the • support for your expats to make their move easy… Upper-Rhine French- Our services are confidential and free of charge.I A Thriving and International Economy German-Swiss area The cradle of known as the “Golden flagships such as Triangle of Research Alcatel, Alstom or and Education.” This Tourism Schlumberger, its area combines 167,000 Alsace, a highly touristic early industrial students and 20,000 region, welcomes around vocation was only researchers. Alsace 11 million visitors yearly. to be hindered boasts two universities Alsace boasts an exceptional by 3 successive about 250 research concentration of historic wars, after laboratories, and three energy-plus solutions in the building sector. cluster. and cultural sites, diversity which the region successfully diversified into new national research www.energivie.eu of lively cities and technologies with a substantial input from foreign establishments (CNRS, • “Hydreos” deals with continental water issues: quaint villages, beautiful companies’ investment. With its historic multi-cultural INRA, INSERM). Attractive financial tools - such as R&D Tax pollution management, quality of water systems mountains allowing and bilingual assets, Alsace is the first international Credit and Cluster collaborative research financing - make and water protection, in collaboration with the multiple outdoor activities, region in France. Strasbourg, seat of the European it particularly interesting for companies located in Alsace to Lorraine region. www.hydreos.fr. the best white wine in Parliament, is a vibrant cosmopolitan city with a large carry out their research in this unique environment. the world and the highest foreign community of professionals and students. The More than 1,200 international companies have concentration of Michelin- regional economy, one of the wealthiest in Europe, has 5 high-tech clusters put Alsace at the forefront of chosen Alsace starred restaurants! The both the highest foreign investment and exports rates progress Novartis – Ricoh – PSA – Columbia Sportswear – Georgia region is also well known for in the country. • “Alsace BioValley”, a world-class cluster focused on Pacific – Behr – Liebherr – DS Smith Kaysersberg – the celebration of Christmas pharma, biotech and medical devices. www.alsace- Osram – Hartmann – Gripple – Mercedes Benz – HJC – time, for more information Human Resources & Unparalleled Quality of Life biovalley.com Mars – DuPont de Nemours – Sharp – Timken- Johnson please visit: http://noel.tourisme-alsace.com/en/ With their dual culture, Alsatians take the best of • “Vehicle of the Future” deals with technologies Controls – Dow – Kraft – Wrigley – Hager – THK – both worlds, with German discipline and work ethics linked to car manufacturing, in association with the Mitsubishi – Lilly… 28 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 29 news regional feature: alsace Fournisseur d’énergie à Londres A UK Success Story in Alsace ALSACE: THE CONTINENTAL ‘CRADLE’ OF Pour plus d’information GRIPPLE UK’S INNOVATIVE WIRE SUSPENSION VIVE visitez edfenergy.com SYSTEM COMPANY LA VIE !!! VIVE eveloped within two years, the original L’HIVER... D Gripple was launched in the UK in 1988. Throughout the 1990s the name Gripple became QUI VOUS APPORTE synonymous with fencing and trellising. In 1998, Gripple entered the world of construction. The LES BONNES AFFAIRES !!! wide ranging, ground-breaking, ready-to-use solutions have revolutionised services ranging from electrical, heating, plumbing and ventilation to air conditioning, ceilings and signage. Energised by the rapid and exceptional British development of the company’s innovative wire suspension system, Gripple Ltd decided to expand in Europe. In September 1999, the European industrial BUYING OR RENTING? sales operation of Gripple was established in Obernai, France. Apart from its strategic location at Winter is Best! the crossroads of major European markets, Alsace ACCOMPAGNEMENT BILINGUE… ACQUISITION… was selected for its conscientious, multilingual VENTE… LOCATION… SERVICES EXPAT.. and highly qualified workforce as well as for the FORMATION : ‘L’INTÉGRATION LONDONIENNE’… quality of life the region offers. BILINGUAL CORPORATE RELOCATION... Setting up in Alsace was facilitated by a strong professional support from the local economic ACQUISITION… SALES… EXPAT SERVICES... development agency. Ten years on, the Alsace LONDON INTEGRATION TUTORIALS.. office has expanded: it boasts 55 well trained staff, 4 regional offices in Germany, Italy, Portugal and MARIE-CÉCILE BOULLE Spain, and has opened a marketing department as ET SES COLLÈGUES VOUS OFFRENT PLUS DE well as an integrated design department. 50 ANS D’EXPÉRIENCE Innovation has always been central to INTERNATIONALE ! the Gripple ethos, as has significant financial investment which will continue to support the development of further revolutionary award- winning products in more markets in the field of Call us and HEAR construction. I the difference … Denis Anthoni, we love what we do!! Director, Gripple Europe aOZSa.P]cZZS Q] cY www.gripple.com eee P]cZZS Q] cY 30 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 31 %$&%NERGYISATRADINGNAMEUSEDBY%$&%NERGY#USTOMERSPLC2EG.OWHOSEREGISTEREDOFlCEISAT'ROSVENOR0LACE ,ONDON378%. INCORPORATEDIN%NGLANDAND7ALES%$&%NERGY#USTOMERSPLCISAWHOLLY OWNEDSUBSIDIARYOF EDF Energy plc. The responsibility for performance of the supply obligations for all EDF Energy supply contracts rests with EDF Energy Customers plc. INFO Feb10.indd 1 11/02/2010 10:32:49 success story success story Zoo markets a path to success Lars Clausen’s French and Danish influences have already made an impact on marketing in England. Now with its embrace of the brave new world of iApp technology, his firm Zoo Communications promises an even more exciting future. Simplicity and style • Lars Clausen implicity and style – those are the two winning Empowering people once emailed them, and called him in to help with web designs, such as a multilingual website for the S ingredients of any successful marketing group. Another key to success is an open managerial style, a problem. BTA’s slightly rebellious French branch Monaco Tourism Board. So says Lars Clausen, managing director of Zoo Lars insists. Zoo now handles clients from the Monaco wanted to use edgy images of punks on London’s Yet Lars warns: ‘A website has to be clean, simple Communications. And Lars, now 42, feels genetically Tourism Board, the software firm Cognizant and King’s Road, but this was not what the English BTA and straight to the point. The end-user is looking for blessed with both ingredients as he is half French and the prestigious Oetker European hotel chain, to the wanted to portray of England. It was a test: if he could something visually exciting. People no longer have half Danish! retail chain Tchibo, the brewing conglomerate Inbev solve this issue, BTA would employ his services full- time to read, and strong visuals tell a story far better UK, a prestigious marketing group called The Luxury time. So Lars visited the Paris office, spoke to them in than any words.’ A supposedly dynamic website full of In the genes? Network, and the elite London Capital Club. French, and changed their minds. All were happy and Flash-based technology can appear cluttered, he says, As he explains, ‘My mother’s French side had a definite Lars continued working fruitfully with BTA. and even static; whereas a simpler site loads quicker influence, because I do appreciate good elegant design. Studying the market ‘and has information where you want it.’ If you lose Yet there is a modern-looking simplicity to the way Lars graduated in 1990 and spent a year working for a A taste for tourism and luxury people on the home page, says Lars, they switch off Danes do things, and that also translates into Zoo’s small design agency at Kingston upon Thames. Then The BTA contract opened the door for others in the and move elsewhere. no-frills, no-nonsense service.’ on 1 January 1992 Lars set up his own company, Direct tourism field, first with Maison de la France and then with Another inherited head-start was a good grounding Communication Group (DCG), the predecessor to Le Méridien. When Forte Hotels bought Le Méridien they Mind-blowing possibilities in business principles from his Danish father, the today’s Zoo Communications. He admits that good moved their offices to England. One day the Le Méridien Lars particularly welcomes iPad technology, especially marketing director for American Express Europe. In luck played a role in attracting initial clients. Purely by manager called Lars, remembering an earlier contact, and iApp programmes, which ‘open up mind-blowing fact it was his father’s job that brought Lars – who chance he called the Institute of Direct Marketing (IDM), said ‘I want to work with a French-speaking agency’. possibilities for both sales and exhibitions’. He calls was born in Aarhus, Denmark’s second city – to discovered that the marketing director was an old Lars continued with them even after Le Méridien’s it ‘a whole new avenue for companies, a revolutionary London as a child. Kingston boy, and spent ten years working with them. owners changed, from Forte to Granada to Starward way to communicate with end-users and staff alike’. Creative genes clearly run deep in the Clausen Hotels. Work included drafting brochures and corporate Furthermore, apps will drive design because they family tree. Lars’s Danish grandfather was an Playing the French card communications, directors’ and investors’ presentations, enable you to do things you couldn’t do before. Data architect, and the young Lars promised him one His fluent French helped him land a second client, a and creating collateral at a hotel level. In short, the firm capture provides a perfect example. ‘You can get clients’ day that he would become an architect like him. French company called Travel Voyages, for whom Lars’s transformed their visual marketing. information onto their iPad, ready for use in a targeted ‘But while I never really managed it, I was always firm did everything from newsletters to letterheads and email campaign’, he says. Zoo produced looping videos interested in advertising and marketing. So when I business cards. ‘From early on I noticed I was getting To the point websites on ambilight plasma screens, and kiosks with options to was offered a position in a small design agency after easy wins when I approached French companies who Zoo never touches product design, yet it greatly download information onto memory sticks. Moreover graduating in 1990, it seemed a good step onto the were setting up in the UK’, he explains. influences packaging and advertising. Lars moved iApps can duplicate on a client’s iPad what is shown on ladder. I have stayed in design and communication One breakthrough came with the British Tourism into the digital arena in 2000, and soon branched big screens at exhibitions. ‘The important thing is being ever since.’ Authority. The BTA remembered a piece Lars had out into e-marketing, multimedia presentations and in control of the technology’ I N.K. www.zoocomms.com/frenchchamber 32 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 33 focus f o c u s Navigating the Storm Introduction f the end of a recession may be found in its origins, through to pressures on the Eurozone and the decline Ithis one is hardest call. This is because of its instability in the dollar. This additional instability makes company and the depth of neglect now exposed. planning and selling harder than ever. The economic and financial world is in greater Finally, stock and bond markets have become flux than ever before. In every department of finance, especially volatile over the last two years, in reaction to including currencies, stocks, national economies, the $64 billion question, when will recession end and banking and local business, managers are having to sustainable growth resume. This forms the final part make guesses about the future look of their markets and of the Focus and we hope to examine for an equation their costs based on very little information. We are in whose answer has yet to be established. But it is also the a brave new world, where instability is a key factor in answer we are all seeking for better management, wiser decision making. What are the risks in this environment, planning and greater profitability.I and what are the most visible key strategies? What will the financial world look like if one stares into the future? How do you succeed in this environment? Focus contents The following pages will look at the origins of the 36 Timeline of a crisis 51 Banking on which instability in the economic crisis of the last two years. investment banks? How we got to where we are now We will also look at the development of the crisis, from 52 How to shape the credit crunch to industrial recession. Having covered 37 The revenge of the bank of the future real economy the macro-economic environment, we will go on to 53 French banks take 39 How to raise working capital care with risk global conditions in the banking system, in particular after the financial crisis After the crisis the pressures for structural and capital change. We will 41 When man and focus here on the differing impact on French and British machine collide 54 Make hay while sun shines! banks. We will also investigate the wider impact of the It may not last What role for banking? Basel Three changes on banks across the world. 55 New automatic pension 42 Mixed messages haunt schemes: What they Companies have been forced to address the economic British banking mean for small businesses crisis, as banks have reduced their lending and imposed 43 Not out of the woods just yet… 56 Tax - The Tide is Turning more conservative terms on borrowing. How has this Borrowing still tight for SMEs 57 Adapting in order to succeed impacted the running of their businesses? We will ask if 44 Lightening the load 58 Going back to basics: British and French companies have reacted in different 46 Bankers of no resort private client investment advice after the crisis ways to a crisis in consumer confidence and spending 48 Capgemini’s model of a banking future 59 New rules for Credit power. Should managers make better or different use 49 The £1.5 billion treasure trove Rating Agencies of their financial advisers and suppliers of financial 50 Mind the gap – 60 Emerging markets: the products like insurance, bank loans or investment? opportunities for Financing path to future growth Companies have also had to struggle with currency European innovation crises, ranging from the decline of the Euro/sterling rate, 34 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 35 focus focus Part one : How we got to where we are now Timeline of a crisis The revenge of the real economy Oct 1987 May 1997 Black Monday, the largest global Tony Blair and the After outlining the recent history of financial and systemic crises, Xavier Denecker, MD of Coface one-day percentage decline in stock triumph of New Labour market history – the LSE fell by – continuing in different UK and Ireland, locates the causes of the global economic downturn - and proposes solutions 26.45% guise the free market based on reform, restraint and a return to economic sanity. © wikipedia/Autopilot policies of Thatcher © wikipedia/World Economic Forum © wikipedia/World housands of reports, books and articles have been The systemic crisis Aug 2007 Sept 2007 T dedicated to the financial crisis between 2007 From 2007 banks, such as Northern Rock in the United Paribas announces two hedge funds frozen due to Northern Rock, one of and 2009. Most explain that it came out of a growing Kingdom, started to experience serious difficulties. “complete evaporation of liquidity” in asset backed the top five UK lenders, separation between the real economy and the financial Financial commitments had grown out of proportion security market. European Central Bank injects €170bn becomes the first British economy. This link will have to be restored. The access to their capital stock. Markets got feverish. Panic into banking market, US Fed lowers interest rates, Bank bank in 150 years to of England refuses to intervene in credit markets suffer a bank run to credit for the financing of companies’ working extended as traders, using very similar software, moved © wikipedia/Alex Gunningham © wikipedia/Alex capital will be more difficult in the future. in the same direction. It was a classic herd effect, all upward, all downward, all at the same time. The subprime crisis Most of the banks were convinced that they were Sept 2008 First of all, let’s go back to the story of the crisis. In too big for states to let them go bankrupt. So they had short, how did we get here? Emerging Asia has for not integrated the lack of liquidity on the markets One week after US government intervenes to save two vast mortgage lenders, Fannie Mae and Freddie Mac, to stop a run on the dollar, Lehman Brothers, 150-year-old giant years been selling its products to the West at low prices into their crisis scenarios. The massive intervention of global corporate finance, files for Chapter 11 bankruptcy. These events are cited which limited inflation; it accumulated receivables in by central banks, governments and, behind them, as major factors in the election of Barack Obama two months later. Meanwhile in dollars and euros which allowed interest rates to be taxpayers, then became their only resort. Britain Lloyds takes over Halifax Bank of Scotland after the latter’s shares plummet. maintained at a low level. The financial crisis resulted essentially from the Within a month Lloyds itself is in big trouble as financial markets collapse. © flickr/sdufaux Moreover, millions of households gained access disjunctions between the financial economy and the to mortgages for the first time. This combination of real economy. The leverage, that is the proportion phenomena was increased by securitisation. Banks between the proper wealth of banks and their Jan 2009 Feb 2009 generated securities representing mortgages that financial commitments, had increased to considerable were produced in different regions and for different proportions. Now, as public finances recover, the main UK is officially in At President Obama’s insistence borrowers’ profiles. Rating agencies put their mark challenge for governments consists in preventing this recession after two US Congress passes record consecutive quarterly $787bn stimulation package to on those financial vehicles, which banks or private happening again. The G20, the IMF, the United States, declines in GDP, the prevent job lay-offs and further individuals bought on the mere financial rating of the the European Union, and the Bank for International last by 1.5% recession due to the worsening vehicle, without considering the underlying risk. Settlements in Basel are gradually setting up a new credit crunch © wikipedia/John Thurm © wikipedia/John © wikipedia/Ari Levinson The possibility of getting rid of risk prompted banks framework for financial activities. It will take months to grant loans to insolvent borrowers: the subprime and years to implement, but this will happen. crisis was now close at hand. Before it burst, everyone had their reasons to be satisfied. Regulatory authorities Avoiding a repeat of the financial crisis Apr 2009 Sept 2010 were convinced that once the risk had been divided up, We can see the main thrusts of this development, even UK Chancellor Alistair Interest rates cut to it would dilute until it became insignificant. Thanks though the timing and details vary from one country Darling reveals £175bn 0.5%, the lowest rate in to the ‘mark to market’ accounting technique – the to another. The Dodd Frank law, adopted in the United budget deficit, largest in 315 years of the Bank valuation of assets at their current value on the market States reveals a few of them. A regulatory authority UK financial history, with of England’s existence; – bank directors were seeing the value of their companies was set up in charge of detecting systemic risks and total government debt set analysts speak of a new to double to £1 trillion by policy of ‘quantitative soar on the stock market. As for traders, their bonuses provided with the power to constrain or dismantle © wikipedia/Antonio Cruz/Abr © wikipedia/Antonio the year 2014 © flickr/ jon hanson easing’ were exclusively related to short term results. financial institutions in difficulty. The protection 36 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 37 focus focus How to raise working capital after the financial crisis Blamed for abandoning clients when times were hard, credit insurers, says Xavier Denecker, actually protected companies from bankruptcy. Now a new openness promises brighter futures. he sudden reduction in credit by banks has T hastened the bankruptcy of many companies in 2008 and 2009. Credit insurers have also been blamed for having reduced or cancelled cover when their clients needed insurance most. What has happened? © flickr/Matt Perdeaux And what solutions are available to companies to The revenge of the real economy • pictures of those evicted from their homes colour the windows of a council estate finance their working capital now that the financial of consumers of financial products, in particular companies who complain that credit has become rare, crisis is behind us? mortgages, is reinforced. Trading in derivatives will and banks who pretend that it is credit demand which And why did banks in the United Kingdom have to be conducted in organised markets and in has reduced. reduce credit to companies so suddenly in 2008 and structures separated from other banking activities. It In the short term, companies will probably give 2009? Three factors may answer this last point: first, will be more difficult for deposit banks to conduct priority to debt-clearing, cutting expenditure, and balance the fragility of prominent financial institutions; operations for themselves. The dismantling of major sheet consolidation. Banks are probably right to say that second, their reluctance to take risks in an unstable Kenzer © flickr/Jonh banks in a critical situation will become easier. there are fewer candidates for credit, even if the increase environment; and third, the lower need for working Credit • hard to come by Other reforms are in progress. They deal with levelling in their risk premiums and of their margins has a role capital by clients whose sales were decreasing. as to banks, is the need for transparency. Financial off bonuses, and forcing a split in their payment to take to play in the loss of interest they say they are suffering. At the height of the turmoil credit insurers were institutions’ clients have the right to know on which account of mid-term results. Rating agencies’ activity is But in the longer term, the establishment of control over confronted with a fast deterioration in the quality of criteria they base their risk scores. The transparency regulated and opened to competition. Establishing a leveraged finance and the increase in capital needs will their risk portfolios. Unable to adjust their premium requirement is not unilateral. It also applies to tax on transactions aiming to curb them does not seem make access to credit more difficult and more costly. rates quickly enough compared to the increasing companies. When they release their annual accounts, very likely, but taxation on the banks’ profits is on the The real economy will take its revenge on the cost of those risks, they reduced their credit limits. and make management accounts available in a agenda. Uncovered transactions will be prohibited financial economy. We will certainly not return to the Yet they played their ‘cut-out’ role in the economy standardised and computerised way, they allow on some securities such as Credit Default Swaps on time before derivatives and securitisation; financial perfectly. By paying a level of claims never seen lenders and insurers to make decisions on risk which sovereign debts. Limits to leverage will be imposed by innovation will go on. But all the ways of financing that before, they enabled many companies to survive the are better documented and therefore more accurate. subjecting transactions currently out of the balance are directly linked to real transactions will get privileged bankruptcy of large clients. And by removing their The second lesson is that there will probably sheet towards building reserves. And finally, the level treatment. We can expect a significant development guarantee on risky buyers, they revealed to their be renewed interest in forms of financing that are of the required reserves will be increased according to of receivables finance. On the whole, this change will policyholders the customers with whom they could directly linked to commercial transactions, such as the norms of Basel II. clearly benefit companies whose real financing needs trade safely in troubled times. letters of credit, invoice discounting and factoring. will be taken into account better; banks, who will Banks will have to put more capital behind their The revenge of the real economy avoid undertaking disproportionate risks; and citizens, Learning from the crisis commitments, but resorting to secured forms of What will be the consequences for companies, in who now know what financial crises cost in terms of However it is necessary to learn from the crisis. The financing reduces the intensity of the risk and the particular the financing of their working capital? unemployment and human dramas. I Xavier Denecker, first lesson, which applies to credit insurers as well need for capital. I A contradictory dialogue has emerged between Managing Director of Coface UK and Ireland 38 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 39 focus focus When man and machine collide Corporations are vulnerable to destruction or destabilisation as a result of many factors. These include human duplicity, computational failure and inadequate oversight. Here, Bruno Grappin, Head of Research and Development at Arrow Financial Consulting France, explains the importance of operational risk in anticipating and protecting a company from disasters. f the latest newspaper headlines are anything to go by, regulatory mechanisms. The impact of these crises has I it appears very difficult to determine whether man or in particular compelled regulatory bodies to demand machine is most at fault for these troubled economic that financial institutions put in place a genuine times. Although programmed by humans, trading operational risk management system. computers can sometimes go completely out of control, Trust is vital to financial trading, as has recently with dire consequences: take the Accenture flash crash been proven by the liquidity crisis from which we have of 6 May 2010, for instance, where the share price just emerged. However, recent crises have shown that temporarily plummeted to just 1 cent following a human the control procedures currently in place are still far error that was subsequently proliferated by trading from satisfactory, and that the practices of enterprises, automatons. Or the Black Monday crash of 19 October their staff and their computer systems must all be 1987, when a computer glitch brought about the collapse regulated further. of many of the world’s stock markets – including Hong We have to recognise that only the concerted efforts Kong (down 45%), Australia (down 42%) and Spain (down of the regulatory watchdogs will prevent the mistakes 31%) – and led to the biggest fall in prices ever seen. These made in the past from recurring. However, beyond the events were both short-lived crises caused by machines, operational risk so widely reported by the media, is it which seem to have faded from public memory due to not time for us to question the validity of the models there being no human agency to castigate. that are used to assign value to financial contracts? On the other side of the coin, however, just think After all, were these very models and their questionable of all the editorial inches devoted to some presumptions not to blame for the of the more recent crises that we’ve gone recent subprime mortgage crisis, which through, reporting the misdemeanours of arose due to buyers not being able to such fraudsters as Nick Leeson, who was foresee the risks that they were placing responsible for the collapse of Barings Bank themselves under? in 1995, Jérôme Kerviel, whose actions led to The Basel Committee on Banking Société Générale losing €5 billion in 2008, Supervision is well aware of this problem, and Bernard Madoff, who swindled over $50 and is today demanding that banks billion from his investors. take model risks into consideration. By In the past, colossal losses generated transforming local crises into full-scale by machines in a matter of milliseconds international crises, market globalisation have shaken financial markets to their very has forced the financial world to re- core, yet in the general mindset, the blame examine its practices and ensure that its for any misadventure whatsoever still risks – which go far beyond misdeeds lies solely at the feet of people. The crises committed by individuals – are kept caused by man and machine alike have under control. I Bruno Grappin, Head of forced financial institutions to reassess Art © flickr/ Feggy Research and Development – Arrow Financial their own practices and strengthen their Taking the blame • Bankers Consulting France 40 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 41 Eagle Perf_Info Ad_279x197_AW.indd 1 27/10/10 16:42:45 focus focus Part two : What role for banking? Banks have taken much of the blame for the crisis. But most finance is provided by them, and most businesses depend on them for working capital. Here we look at the responsibility of the banks for what went wrong, but perhaps more importantly, look forward to assess the banks’ role in the future and other providers can offer finance for businesses. Not out of the woods just yet… Borrowing still tight for SMEs Mixed messages haunt British banking ‘Credit crunch’ is no empty cliché for firms across the UK. Here Prue Watson,Press Officer of the British companies are still paying for the credit crunch that devastated the world financial Federation of Small Businesses answers questions from INFO, and explains that while banks are system. Banks will not lend until they have a sounder footing, whatever the government might cautiously offering loans again, these often come with strings attached. require, or the banks themselves claim, says Nicolas Kochan. ow far has the credit crunch affected the ability of recession. However, for fuller statistics we advise readers ank lending to British legacies. One of these is of course Hsmall and medium-sized businesses to borrow from to consult the British Bankers Association (BBA) whose B companies is at record low the massive budget deficit, which banks? figures are recorded here: www.bba.org.uk/statistics/ levels. This is a subject of great government is seeking fill with a At the beginning of the downturn, small businesses article/small-business-support-september-figures. aggravation to the companies and programme of harsh cuts to public consistently received a ‘no’ from their bank when perplexity to many who argue that services. The second, is the pressure they applied for an overdraft or a loan. As we moved Have banks attached new and tougher conditions to only by investing and lending to on the banks to prepare themselves through the recession, banks began to say ‘yes’ but borrowing. What are those conditions? British companies will the scourge for sale to the market. This will attached huge interest rates when businesses were at Banks have got tougher on security for finance and of rising unemployment be enable the Government to earn an all-time low. In some cases applying firms were and have increased charges for banking services, such as averted. This looks sensible at one back its £76 billion support for the still are asked for collateral, such as listing their house cash and cheques. We are also hearing that chip and pin level, but at another it is fraught two big banks, together with some as security. Now, small businesses in need of finance card terminals are being made more expensive and that with complications. of the other funds the banks used are dipping into their savings or borrowing money monthly charges for these machines are being increased. St. Andrews Square in Edinburgh • Former To understand the problem RBS HQ to remain afloat. from friends and family. in stimulating bank lending, one Here comes the rub for small Have you seen an improvement in borrowing conditions must go back to the low point in British banking history companies, completely removed from this world of Could you give us some statistics to show how much SMEs for SMEs? in 2008 when the British government became owners high finance, yet dependent on the banks for borrowing were borrowing every year before the recession, say in Yes, however there have been fewer small businesses of the country’s two largest financial institutions, Royal and long term investment. Government wants banks 2007, and how much they are able to borrow now? asking for finance. It is almost impossible to explain Bank of Scotland and Lloyds Banking Group. Both to lend to companies because they have a duty to the It was around £500 million per month before the why this is happening, but reduced demand and fear of institutions had invested in American subprime and wider economy. Banks are also being asked to build up the banks have both been mentioned. other so-called ‘triple-A’ instruments only to find them their capital reserves, to ensure they meet the solvency close to worthless as liquidity exited the market due to requirements (a function of the Basel Three accords). Do you give any particular pieces of advice to SMEs lack of trust in basic economic fundamentals. These are aimed at guarding them against a repeat of the wanting to borrow from banks? The British government was required to spend some crisis. Finally, maximising bank profitability is a priority Small businesses should always go to the bank with a £850 billion in support of the banking system. This was to help government reap back its investment. solid and concise business plan. For without it the bank made up of the following elements. The government The messages are mixed and unhelpful. Government is more than likely to refuse the request for credit. spent £76 billion to buy controlling stakes in the two waves the big stick at the banks for poor lending to banks (58% in the larger bank RBS and 43% in Lloyds). smaller companies, on the one hand, yet they privately What other sources of finance can SMEs use, if banks This was combined with the provision of £200bn pressurise them to do everything possible to set aside reject them? for liquidity support; guarantees of up to £250bn of risk capital and produce profits and performance that We know from our members that many small wholesale borrowing by banks to strengthen liquidity; shareholders will pay for at some future date. businesses are dipping into their savings or going to £40bn of loans and other funding to Bradford & Bingley Bank lending is likely to remain very short, so long friends and family for finance. But small businesses and the Financial Services Compensation Scheme; and as British institutions are required to face in so many can also access finance from small credit unions and © flickr/Howard Lake © flickr/Howard insurance cover of over £280bn for bank assets. ways, whatever the public posturing and bank directors’ Money money money! • The beginning of the downturn saw equity funds; and some loans and grants are available The terrifying bill to the British taxpayer has left many statements of good intent. I N.K. many businesses refused a bank loan through local authorities. I 42 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 43 focus focus Lightening the load The French Confederation of Small and medium sized businesses (CGPME) finds the worst of the loan famine for SMEs has passed. But the strains continue to show, says Jean-François Roubaud, CGPME president. ow far has the credit crunch Could you give us some statistics affected the ability of small to show how much SMEs were H © sxu/kipcurry/Pierre Amerlynck and medium-sized businesses to borrowing every year before the The French Confederation of small and medium sized businesses says the loan famine has passed borrow from banks? recession, say in 2007, and how The worst credit squeeze as far as much they are able to borrow now? What business sectors are banks favouring with loans? anyway. If that fails, the CGPME would encourage its businesses were concerned was in The CGPME uses the Banque de Which sectors are they less happy to lend to? members to get in touch with their third party credit the second half of 2008, particularly France’s statistics on non-financial The CGPME does not have any accurate figures on this. ombudsman at their local CGPME or bring the credit after Lehman Brothers failed. The companies [SNF]. These show One thing we have found, though, since the crisis, is that ombudsman in if it falls within their remit. crisis of confidence spread, and loans to businesses and SMEs the banks have tended to lump all businesses together SMEs found themselves starved of have not recovered to where they by the sectors they are involved in, not as a function What other sources of finance can SMEs use if banks credit. Some sectors, and industry were in September 2008, when of how able they are to repay their loans individually. reject them? in particular, found their credit the crisis hit France. Then they When it comes to lending, the banks are tending to While the banks are still businesses’ main financial dried up almost completely. had borrowed over €582 bn; today, favour safe or financially most promising sectors. partners, alternative or complementary approaches What this meant in practice the figure is €539.5 bn. Not only are also growing. In France, primarily, there is OSEO, for many SMEs was that banks that, but the level of loans granted Have you seen an improvement in borrowing conditions which was set up specially to facilitate credit to SMEs. became more demanding, took to SMEs has also been going down for SMEs? It loans directly and in partnership with the banks, or longer to process applications since August 2009. Accessing credit has become easier for SMEs in 2009-2010. it provides guarantees. OSEO proved to be particularly and granted less facilities. © flickr/David Shankbone Loan rates are down, and the banks have committed welcomed by businesses concerned by the crisis. The crisis of confidence spread after Lehman The main problems appeared Brothers failed in September 2008 Have banks attached new and themselves to provide more finance for SMEs, improving Businesses can also use mutual guarantee companies, with short-term credit and tougher conditions to borrowing. their lending terms and acceptance times. The authorities factoring companies and credit insurance to find financial cashflow facilities. Many SMEs found themselves in What are those conditions? have also implemented policies to encourage loans solutions. And, finally, businesses can turn to venture serious difficulty. More businesses were becoming When it comes to accessing credit, the banks have to SMEs. So things have improved: but there are still capital. It is worth noting here that the authorities are insolvent, drastically so since July 2008 according to tightened up. The main criticisms by CGPME members problems, especially in terms of short-term credit. trying to help SMEs access the regulated markets. Altares. Insolvencies increased relatively modestly in are that the banks are more timid: during the crisis, they the first six months, up 5%, but three times that rate in refused to take any risks, took longer to approve loans and Would you give SMEs wanting to borrow from banks any Which banks are most willing to lend to SMEs? the second half of 2008 (up 15 %). demanded more documents and, above all, guarantees. particular advice? It’s hard to say which banks are most liable to lend to This led to 48% of directors of SMEs saying they Today, if the cost of credit has fallen (except for The main advice the CGPME can give its members is SMEs; but some networks are more oriented to the were reining in their investments in March 2009. short-term facilities, which are still high), the issue of to be as straight as possible with their banks. They SME markets historically speaking than others. The What has stood out about this crisis is that it was not collateral required is becoming a hot topic. We also must not hesitate to think ahead, while trying to find Banques Populaires have a long record of investing in SMEs having problems which led to them finding it hard suspect the reforms the Basel Committee has instigated solutions with their banks if need be. It is essential this market. Because of the crisis, most networks have to access credit, but the credit squeeze by the banks. will just make the banks demand even more. to establish a constructive dialogue with your banks also set up SME management operations. I 44 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 45 focus focus Chris Brown: Froodoo, South East ||| With loans from friends and family Chris Brown set up Froodoo, a business that provides advertising via mobile phones. But he needed extra capital, so he approached venture capitalists, only to be rebuffed on the grounds that Froodoo was too small and new. Next he sought out government grants, but found nothing suitable. So he considered an Enterprise Finance Guarantee, which aims to release working capital through term loans and the consolidation of overdrafts. Bankers of no resort? The government has allocated £700m until the end of March 2011 for Enterprise Finance Guarantees (EFGs) to help banks lend to potential clients. EFGs As Britain climbs out of recession, banks still seem cautious about helping small business start- can be claimed for business growth and development ups. Lawrence Joffe explores the cases of some Federation of Small Businesses members who feel too, where a sound proposition may otherwise be mistreated and who insist that banks could do more. Celera © flickr/Samantha declined due to a lack of security. However, while Froodoo • provides advertising via mobile phones the banks liked his proposition, says Chris, they were not interested until Froodoo proved it could generate revenue without a loan. Currently he is approaching returns. In short Chris suffered from that familiar investment angels in the hope of some heavenly teve Kaczmarek of Lincolnshire sought a £50k Nor is Steve’s case unique – many SMEs wonder why old Catch 22 dilemma – no loan without revenue, no assistance! I S loan from Natwest Bank to bolster his enterprise, banks make genuine entrepreneurs jump through hoops, Poyntons Trading. Surely, he felt, offering his mortgage- banks who only three years ago were offering toxic free property worth £250k as surety would clinch the loans to far less scrupulous applicants. Greater leeway in deal. But Natwest declined and gave no reason. Now lending would benefit not only small firms, they say, but Vonnie Sandlan: The Life Craft, Glasgow three staff have lost their jobs and Steve has had to also a national economy that could do with an injection cease trading. of commercial vigour. Here are three case studies. ||| Earlier this year Vonnie Sandlan and her husband were made redundant. Far from seeing this as a disaster, however, the Glasgow couple immediately began setting up The Life Craft, a tea room, arts and James Winnister: J-Tech Systems, Croydon crafts workshop, online products retailer, and creative skills college, teaching knitting, sewing, crocheting, ||| James Winnister set up J-Tech Systems, a security and jewellery making, even designing your own tattoo. “We fire installation business in Croydon. By all accounts were thinking of doing this for ages”, Vonnie explains. it was a successful enterprise, doubling turnover in “I had been a civil servant and knew it would be hard the past twelve months, with much money going in to find another job in the current climate. So it was an and out every month. So why did Barclays refuse him opportunity to do something I really enjoyed”. credit or even a small overdraft? Launched in August, the business soon attracted a Frustrated with normal banking channels, James following; all classes were sold out in four weeks. To © flickr/pigpogm/Michael Randall turned to ‘factor invoicing’ through another company. cope with costs of anticipated expansion, the couple The Life Craft • a tea room and arts & crafts centre This is a way of getting immediate access to cash, invested £30,000 of their own money and drafted a rather than having to wait for invoices to be paid. detailed business plan. Yet when they approached the why are they asking me all these bankish questions!” Finance companies will pay out on unpaid invoices Royal Bank of Scotland for a business loan of £16,500 Meanwhile the couple have an expensive 10-year for a fee. Unfortunately there is a price to pay, as they found obstacles flung in their way. lease to pay; they had to lay off one of two fulltime James explains. “Formally RBS says it is not refusing; they just need staff; and funds have dried up for essential equipment. “We’ve had to factor out some of our larger invoices, © flickr/Mike_fleming more information”, says Vonnie. “I have already given Vonnie thinks banks are being short-sighted. “They which is costing the company between £500 and J-Tech Systems • provided security & fire installation them everything I can. I had to pay an accountant to have to listen up a bit. If they don’t help small, £1,000 a month – money we really could do with help me answer complex forms. I understand the banks’ motivated enterprises who may have temporary cash- keeping in the business,” he says. The government to small businesses. After all, he says, “They’re the position after being bailed out, but I cannot fathom flow needs, many will go under. And that won’t help should do more to pressurise banks into lending lifeblood of the economy.” I their attitude. My background is not in banking – so anybody, including the banks.” I 46 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 47 focus focus Capgemini’s model of a banking future The £1.5 billion treasure trove With banks under pressure to start lending more freely to SMEs, Andy Lees, Vice President and UK Banks are the target of many unfair claims and criticisms, yet Angela Knight Chief Executive of the Head of Capgemini Financial Services, explores what the winning bank model looks like. British Bankers Association says that their Business Growth Fund offers a way out of the loan famine. s the UK government looks to retail banks due to factors such as A the private sector to grow and low capitalisation, absence of credit ince the onset of the global financial crisis, the drive the economy, it is imperative ratings and high bankruptcy rates S subject of bank finance for small businesses has that SMEs – which account for 51 in comparison to larger enterprises. become a topic of national importance in the UK. We per cent of private sector output Indeed the global financial and are told the banks are not lending enough; or that they – have secure access to finance and economic crisis, characterised are lending enough but the terms are too onerous; or the confidence to use it. by the increasing cost of risk, a that they are turning down loan requests from viable Considering their importance to shrinking demand in the markets, businesses. the economy, the UK government and rising pressure on banks to On the other hand, over this same period, the has a strong interest in supporting support the economy, highlighted banks have seen a steady decline in demand for loans the specific needs of this market, the significant challenge faced by – businesses are, quite reasonably, paying down their and as such, banks have the added the small business banking market overheads, including loans and overdrafts – while pressure of making lending a top to accelerate business development there has been a steep increase in the cost of wholesale priority. Despite this, the latest whilst at the same time managing funding, upon which much bank lending depends. © flickr/HM Treasury Bank of England figures show that the risk. Securitisation markets remain subdued, with knock- The Gladstone Budget Box • Iconic symbol of the Treasury small business lending remains in Capgemini recently produced on consequences for the flow of bank credit into the crisis with many SMEs struggling to Andy Lees • helping SMEs a report “Small Business Banking wider economy. growth. The Business Finance Taskforce was set-up get loans and having to self-finance and the Crisis ” with UniCredit Past downturns show us that a pick-up in lending to analyse the facts, to create momentum: to ensure or use savings to grow and develop their businesses, and the European Financial Marketing Association demand usually lags behind the pace of economic recovery. money is lent prudently to viable small to medium instead of taking on debt. (EFMA) which identified that the small business The normal pattern would be for the pick-up to start with companies; and to support the economic recovery Business Secretary, Vince Cable, has spoken out market requires strong risk management from retail larger businesses and then work through to the smaller without initiating another credit surge. against limited lending by banks as without finance banks and that they must strengthen the role of the ones. This time however the smaller businesses may be in The Taskforce banks committed to 17 actions across businesses are not able to create jobs and contribute relationship manager and improve their credit risk a better position than their larger counterparts. three broad areas. At one end there are things like to the economic recovery. Identifying a niche in the management system. The banks carry special responsibilities here, both creating a national network of mentors to help guide market, the British Enterprise Bank is set to launch in in the wake of the economic crisis and as engines of customers through the process of securing credit. At the the second half of 2011, to offer a new source of funds Achieving the “winning bank” model the economy. They are currently approving four out of other end the banks are looking to build over a number to SMEs. If the bank gets a banking license from the Key to the report’s findings is the emergence of the every five business loan applications, and are registering of years a new £1.5 billion Business Growth Fund that FSA, it will be an entire business model designed to “winning bank” model, which prescribes methods for retail some 40,000 new business banking relationships every will fill a gap in the market, providing capital for viable serve SMEs that have been unable to access adequate banks to outperform competitors on both managing risk month - predominantly start-ups. It is however also businesses wanting to invest and grow. funds from mainstream UK banks. and development of the small business market. true that the application process is likely to be more This was not a document to be put on the shelf to To date, a key factor in the constraint of small To help outperform their competitors on both rigorous than it was in the easy credit era which ended gather dust. It is a promise to government, to business business finance is the restrictive risk management development and risk management the winning bank with the credit crunch. organisations and to customers, and we hope it will processes within British banks. Despite its development model prescribes that banks must ensure strong client Therefore the chief executives of the six largest UK begin to bring real results for the small and medium potential, the small business market remains risky and relationships through a deep understanding of each banks decided in July to take a close look at how they business sectors very soon. I Angela Knight, Chief complex, and requires strong risk management from client’s line of business, needs and expectations. I could do more to help the UK return to sustainable Executive of the British Bankers Association 48 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 49 focus focus Mind the gap – opportunities for Financing European innovation Banking on which investment banks? Investment banks are responsible for the financial crisis alongside politicians, regulators and investors. Creative solutions are being attempted by investors in companies as they seek to assist the Where and who are they, how are they surviving , how will they evolve? By Stéphane Rambosson, entrepreneurs, while protecting themselves from today’s enhanced risk climate, says Marion Laleve, Managing Partner of Veni Partners LLP. managing director of Sum Up Consultancy. ost investment banks are part of large integrated The IMF stated in its recent interim report, the importance hile venture capital business firms crucially members. Most VCs shifted to companies that were M banking conglomerates which can also house of continued support to banks from governments and W fostered innovation, recession has made it already generating revenues and carrying lower risk. retail banking and consumer finance, asset management central banks as some have not fully “cleaned up” their difficult for them to raise funds. So how can innovative This created a funding gap in early stage companies”. and private banking, commercial and corporate banking. balance sheet and are still weak. Refinancing will continue new companies find financial support? Yet while predicting that 40% of VCs may close, These conglomerates have come under scrutiny in the to be a key theme as Eurozone banks still have to refinance In the past, venture capital (VC) firms backed the Romans predicted that entrepreneurs could plug the wake of recent events and there has been discussion that $4,000 billion of debt over the next two years. early stages of such icons as Google, Apple and Facebook funding shortfall. “Today is a great time to invest in they should be broken up, into smaller operations. So the Compensation strategy is a key element of the future of in the US and Skype in Europe. VCs turned start-up an early stage VC fund because they have almost no key question, as we look at the future of investment banks, investment banks. Compensation to revenue ratios were businesses into market leaders in such technological competition in Europe. The trick is making sure that is whether they will remain part of integrated banking generally between 50 to 60% in the current environment. sectors as IT, life sciences and ‘clean tech’. fund managers have the skills and networks to navigate conglomerates. The answer is likely to be yes. The best Political and regulatory pressure on bankers’ pay, in some the dangers of early stage investing”. Pension funds, evidence for this is that the US has not imposed a new instances means these have been taken down to around 40%. Disproportionate impact family offices, university endowments and banks will “Glass-Steagall act1”. This had separated traditional banking Venture capital represents only 2% of the US GDP, yet then all seek to invest, generating a positive cycle that and investment banking in the US. Its regulators have acted Tax problems for bonus earners venture-backed companies accounted for 11% of jobs will boost the innovation economy. to minimise proprietary trading and alternative investments New EU banking pay rules have been published by the in the private sector and 21% in revenue in 2008. The (private equity and hedge funds) which can only represent Committee of European Banking Supervisors– and up UK, followed by France, is the largest venture capital Legal impediments? 3% of banks’ capital under the new “Dodd-Frank Act”. to 60% of bonuses will have to be deferred for up to 5 market after the US. Private equity and venture-backed Obstacles to this recovery, though, may actually come The UK has nominated an independent committee, years; half of the whole amount (upfront plus deferred) companies employed close to 6m people in Europe from EU policy makers. The European Parliament composed of relevant senior professionals, including Bill must be paid in shares, and there will be a minimal in 2004, equivalent to 3% of the continent’s 200m and Council agreed to the controversial Alternative Winter who headed JP Morgan’s European operations, to detention period post deferral. This causes significant economically active people. Investment Fund Managers’ (AIFM) Directive, which prepare recommendations. Its results will be fascinating, potential tax issues. MRTs2 or bankers with “significant Typically VC firms take on part of the ownership demands disclosure requirements of fund managers, as the UK’s integrated financial institutions with large influence function” will be subject to a bonus cap based risk and help manage the company, provide expertise, as well as lower remuneration and an expensive investment banks, namely Barclays and HSBC, have already on a maximum multiple of base salary. EU regulators offer contacts, assist in hiring management, and in new registration regime. AIFM also restricts non-EU threatened to move their headquarters from the UK to the propose that the cash bonus element be limited to difficult times use a heavy hand when trimming costs. investors doing business in Europe. US or Asia should a split be required or enforced. 20% whilst the FSA3 has suggested 50%. There is a Since the recession, VC firms have shifted from seeking All of this could prompt an exodus of VC firms A key consideration will be the sort of capital and consultation process currently underway and rules high growth companies to managing existing clients, investing in Europe. According to European Private financing required of investment banks. Basel III standards will be effective in January 2011. These will apply to while cautiously stressing capital efficiency. Equity and Venture Capital Association chairwoman require banks to increase Tier 1 and assimilated capital from EU banks globally and to EU arms of international Uli Fricke, the measures will harm the EU’s already 7% to 9%, which despite the long term deadline (by 2019) banks, which should create considerable distortion Recession and recovery struggling SME sector. “Most worryingly, there is no is triggering flurries of rights issues, some also acquisition- globally and could boost non EU venues (US, Asia and Access to financing now worries innovative technology light-touch opt-in for small funds in this directive. This related (e.g. Deutsche Bank, Standard Chartered and BBVA). Switzerland). Structural constraints are likely to lead start-ups. When the recession hit the capital pool shrunk will have a damaging knock-on impact for financing of Access to increased capital will be sought by investment to another increase of salaries, notably by US banks, dramatically. Andrew Romans, CEO of the Founders innovative SMEs. The European Commission should banks in order to commit capital to clients and underwrite which will affect business models; with more capital Club says “many VCs could only raise a fund half the urgently address this burden that jeopardises a recovery transactions - e.g. as was the case for Morgan Stanley with and more fixed costs, banks will have to be creative to size of their previous one. Management fees were based on knowledge”. I Mitsubishi, expected by Nomura to access more capital. generate adequate returns for other stakeholders. I reduced and they had to let go of partners and team Marion Laleve, managing director of Sum Up Consultancy Regulatory capital funds are also being set up to this effect. 1Glass-Steagall Act − US banking law of 1933 largely designed to prevent speculation. 2MRT − Material Risk Taker 3FSA − Financial Services Authority 50 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 51 focus focus How to shape the bank of the future French banks take care with risk French banks have come well out of the crisis, as a result of native caution, strong competence A crisis entails both danger and opportunity, runs the Chinese saying. In that spirit Christian-George and prudent financial management. But Micha Missakian of Ernst & Young warns there may be Malissard, CEO of Eagle Performance and senior business advisor to large multinational firms, pitfalls ahead. believes the current downturn offers a chance to abandon the tired notion, “the boss is the expert”, and promote instead collegial banks with less clone-like staff… lthough it may appear obsolete to compare banks before their European peers. Once bitten twice shy. A on nationality criteria, local specificities remain Finally, traditional French caution is evident in ow are banks responding to the crisis in terms of What is management’s challenge in many banks? strong. In this respect, French banks seem to emerge the attitude to assuming risk. Savings ratios in France H how they handle other people’s talents? Banks now encourage managers to apply commonsense, from the crisis in quite good shape. The reasons for are among the highest in the world and this has Some missed opportunities; others will have done energy and conviction. Many people have been fired or this are many. They include: their business model, the positive consequences both for household solvency the right things. Banks should reconsider how their end up burned out. Banks ought to revive confidence, local regulatory environment and as usual when it and for banks’ balance sheets. French education also management is designed. Currently staff are valued for and managers must clarify objectives and ensure that comes to France, a pinch of tradition. plays a part. France offers top-of-the-range degrees in their expertise and their ability to manage formulas and everyone in the chain of command gets it 100% clear. The recent crisis has highlighted the resilience of the Mathematics: more than 20% of the Fields Medals have models. Investment banking is a lot about technology universal banking model. Now it is generally accepted been awarded to French researchers. These medals are and execution, yet few reward employees for what they How can this be best achieved? that such model has become as French as Champagne awarded for outstanding achievements in mathematics. are. People are promoted up the silo because of their Banks can maximise synergy through introducing (at least for a few decades as some predict that global Mathematical ability is as useful for building nuclear competences, not their behaviours. This risks promoting collegiality. In matrix management people work together, warming might force producers to harvest the grapes in plants as it is for the risk management departments of clones of themselves, who in turn hire yet more clones. rather than compete. This will benefit the bottom line. the Hampshire). Thus, besides their strong retail banking banks. It is also reflected in the conservative approach People need to hold back their egos and review their networks, French banks have built international size asset often taken by French banks. As an illustration, at How exposed are banks as a result of this strategy? preconceived ideas. New reward policies recognise management, investment banking and even insurance the time of the move to IFRS (International Financial Banks could reflect greater diversity. They are too inward behaviour and collaboration, which is great. Yet who is businesses. Crédit Agricole and Société Générale for Reporting Standards), when it became easier to compare looking and appoint their own people. Some bankers do the best asset: a person lacking relationship skills but example have created one of the top 10 worldwide Asset financial statements, we noticed that French banks recruit from other industries, but when Apple needed a achieving targets, or a person with great rapport? Management companies, while BNP Paribas is the number had very high reserve-to-loans ratios. These proved well top gun they turned to Coca-Cola, not a banker! The boardroom must provide an example. The boss one consumer credit firm in Continental Europe. equipped to face the financial hurricane which started needs to communicate values. Too many top executives The French banks also owe their solidity to the to blow barely two years afterwards. What does the post crisis situation mean for the senior ignore staff and seem disconnected from the reality French regulators and public opinion. French banks paid However some would argue that such a banking people in the bank? of the trade. How many of them are still unknown by a heavy toll during the crisis of the early 1990’s. While model is less efficient in times of economic growth as The crisis provides a chance to reshape the powerbase, to their workforce, or are eroding commitment through this delivered a great blow to many countries’ banks, an obvious consequence of the risk/profitability couple. bring people into the boardroom who can lead as opposed unachieved decisions? few had to deal with issues on the scale of those hitting It is probably true, however does it still make complete to command. These are different skills. Commanding is Crédit Lyonnais. French tax payers have in a way been sense for an industry which will have to get used to the traditional way of managing and it often requires Why is your particular role as a trainer and coach? asked for contribution to prop up their banking system lower return on equity because of new prudential obedience. Although leadership and managing skills are My role is to challenge management behaviour and regulatory and tax burdens? complementary, people would prefer to work for leaders expectations. I emphasise the importance of human Still, it is fair to say that unlike some of their with vision rather than just expertise. and personal values as well as specific skills in the European peers, a lower proportion of the revenue of appointment and promotion of staff. I also encourage French banks is driven by their Asian operations, which What are the key skills for management and how should managers to work in teams. I accept that banks still could be viewed as a restraint on their development. they develop? need to get the best people from the best university Schematically, French banks were probably not heavily Banks need to hire or upgrade people who can see, or from top competitors. But employees also need active where it was not safe, but they may not be strong explain and convey the firm’s global mission. Employees personality and temperament. Without this complex enough where it could be good to operate in the future. no longer know if they are working for the right banks. formula you will be in a tier two bank. To reach the Wind ole We should also bear in mind that France did not Recently banks have been blamed for the crisis and key top you need to hire the best people, but also find the é experience a real estate crisis. Some predict a quite talents felt exposed to criticism. Some are at a major best way of handling and developing them. It is often significant decrease in real estate values in France over turn in their working life and banks should not lose said that “people” are company’ best assets but I would flickr/ © the next 5 to 8 years. If that happens, the situation may them. They need direction and guidance. rather say only the “right people” are the best assets! I The universal banking model has become French like the Eiffel Tower turn out quite differently. I 52 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 53 focus focus Part three: After the crisis Make hay while sun shines! New automatic pension schemes: It may not last What they mean for small businesses The economic system is in need of a complete restructuring to ensure recovery from recession, The Government’s October pension reforms seem part good and part bad, benefitting millions especially as VAT is set to leap to 20% next year. Here Stephen Lewis talks to Nicolas Kochan. of individuals but arguably penalising SMEs. Here Mark Beynon of Blueprint Financial Services stresses the positives! hat lessons should companies draw from where we are could develop for funnelling money into SMEs, which bypassed Wnow? Many Chamber members are French companies the traditional banking sector, they would be very happy. or businesses, still feeling the strain from the who are in the UK, some small, some big. How do you expect F economic downturn, the government’s confirmation the economic environment will look for the near future? Do you see the euro weakening, say, against sterling? last month that every company ‘no matter how small’ will They should be making hay while the sun shines! We The level the euro has reached in the past month or so have to provide a pension scheme to its staff was met with will have some relatively favourable demand conditions is the level at which it was trading roughly this time dismay. The Federation of Small Businesses warned of the over the next two to three months. So that will be a last year. Then it created significant tensions in the ‘extortionate costs’ and was ‘extremely disappointed’ that favourable market for those who wish to sell goods and euro zone. For German exporters, they could live with the Government was not exempting so-called micro firms services. But it will become tough thereafter. it; it was fine having 1.40/ 1.50 against the dollar. But the – those with five employees or fewer. The important thing will be to make sure that French exporters could not live with it. They need the The government says it will mean millions of people inventories do not move in the wrong direction, because euro to be around 1.25 to be comfortable. will start saving into a pension scheme for the first it may be that some companies will be lulled into a sense time. That way an additional 4m to 8m people start to that the economy is in a sustainable upswing, because Do you have a prognosis on how long the recession will last? provide for their old age and put the brakes on the ever © flickr/Scott Wills of their own experience of above-forecast sales in this I have maintained that we haven’t been in a recession but increasing savings gap in UK retirement planning. Preparing for later life period. So they may over-order and then find that demand [rather] a depression! I define a depression as a situation falls away very quickly. Then they will face a very serious where the level of activity is widely recognised to be sub- Sweetening the pill do not have such expertise themselves. financing problem. The key unknown will be the rise in optimal. But nothing the authorities can do to push up Government officials say small firms will have However, businesses who take action sooner rather VAT to 20% in January next year. activity is effective. That is the situation we are in. It is most additional time to adjust. Auto-enrolment will be than later can minimise the burden, and ensure that It will be very difficult for companies to regulate the obvious in the USA where they are really trying everything forced on large firms in 2012, but small firms will not their staff have the most appropriate benefits package level of inventories to ensure that they do not get short or they can think of to get activity up, and it hasn’t worked. have to comply with the rules until August 2014. when auto-enrolment comes into effect. caught long in an embarrassing way. This is quite different The effects to boost activity here have been less energetic, Under the scheme rules, employers will pay in 3% of For small and medium sized companies, the easiest from the situation last year, when the temporary cut in but one suspects that even if they were more energetic, they a member’s salary, the government 1% and the member option is a Group Personal Pension – simple to set VAT was restored. It went to 15% and then up again. Most still wouldn’t have worked. This includes quantitative easing. himself will pay 4%. However, these contribution levels up and operate, with most admin carried out by the prices didn’t fall when the rate was cut; instead it boosted So we should expect a very patchy lot of performance from will be rolled out over a five year period with initial nominated insurance company. Effectively, all the retailers to keep them going through what was a very these economies going forward from here. employer contribution levels set at 1%. employer needs to worry about is getting the funds difficult time for them. We are not really going to get out of this depression Let’s remember the benefits rather than the costs of to the insurance party. If you are already set up with phase until we have thorough-going structural reform. the new requirements. Provision of a pension scheme BACS1, this is easy. Group Personal Pensions can take Do you see any improvement in bank lending to companies? That will require a shift in the balance of the US and motivates and keeps staff. It’s the second most valued a matter of weeks to set up through an independent Banks claim that for large companies who don’t need credit, UK economies towards exporting and away from benefit – after pay of course – and, with personal pension financial adviser (IFA). Finding the right adviser could the credit is available. For small companies who have uncertain consumption. It is difficult to achieve a rise in savings scandals still within memory, it is especially valued. save companies considerable sums of money. business plans, they may feel the need for credit to tide them levels when saving attracts a rate of just 0.5%! So we The myriad choices can be confusing and complex. The message is clear - act now, save later. I over – but it is not going to be available. The banks don’t want don’t have a coherent policy mix here – it won’t get us This choice is only likely to increase as demand for The Department for Business, Innovation and Skills (BIS) to lose money on the assets that they take onto their books. out of the depression. I services rises with the proposed changes. Now smaller offers free advice and tools online to help you manage The government would prefer if companies could find Stephen Lewis is the chief economist at Monument companies may face the major cost of having to hire your employment obligations. (See company website www. sources of finance outside the banking sector. If other channels Securities in London. consultants to set up retirement schemes, since they businesslink.gov.uk/employing people). 1Bankers Automated Clearing System 54 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 55 focus focus Adapting in order to succeed Tax − The Tide is Turning The middle of recession is the time to start looking forward. That enables management to raise Government has to set tax rates that maximise returns, generate growth and don’t harm the morale. It also puts the spotlight on today’s deficiencies that will hamper recovery. When the vulnerable. Andrew Moore, director of Leprêtre and Partners, describes what it takes to get the recovery arrives, the business that learns these lessons is best positioned to take advantage of balance right. the upturn, says Jean-Christophe Fonfreyde, of Papillon Consulting. he purpose of taxation is to match the cost of balancing short term needs for cash against sound long ecessions present strong opportunities for the acquisition of talent or assets or new partnerships T provision for the public good to the tax revenue term planning. In the long term, it is the economic status R companies with the willingness to transform in research, manufacturing or supply chains. – a simple job of balancing the books. There should of the nation that underpins business, which underpins tax themselves, enabling them to emerge as industry Resources should be quickly and systematically also be some flexibility to allow for the varying tides revenues and thus maintains public provision. If economic leaders over competitors that reacted passively or focused to targeted areas. Other areas should either be of trade. It sounds easy enough, but in reality the strength can be restored, then perhaps some short term defensively and stuck to pre-crisis modi operandi. divested if persistently underperforming or be given flow of money takes a torrid and turbulent route over pain is tolerable, like bathing wounds in salt water. Benefiting from the economic downturn requires resources directly proportional to their contribution boulders, down ravines and through hidden channels. Tax is a means of distributing wealth, but it can also organisations to develop a sense of urgency, to focus to future growth. Channelling resources in that way Is it leading to an all consuming whirlpool, or are distribute pain to some and provide welcome relief to unwaveringly on action and on the future and to can provide a strong advantage over competitors there calmer waters ahead? others. So where to begin? The windfall tax levied on concentrate resources on innovation, customers who may be involved in indiscriminate cost-cutting We may be able to make some sense of it all by banks in the UK and France could be interpreted as a and staff engagement and operational excellence. programmes. considering the direction of the current, and the punishment levy, a way of taking from those who appear Transformation follows several logical phases. The fourth phase requires actively engaging obstacles ahead for taxation. to have profited most during the crisis. Is this a popularity Firstly, a company must thoroughly identify its with staff and customers. The new strategy must be tax? Or something of genuine value to the State producing existing areas of strength and unique defensible communicated in an open, simple, unequivocal way Regulators are ‘toothless sharks’ significant revenue? Or is it a mechanism to discourage capabilities that set it apart from the competition. It across the whole organisation. A commercially-driven It is tempting to blame the bank for the current excessive profit making? That is without stifling an must use open feedback from staff, suppliers and HR function should ensure that its core areas, such economic predicament. The banks, in their turn may important aspect of the economy – money lending. customers to have a complete view. as talent management or reward, are totally aligned point the finger of blame at regulators, who in turn, Secondly, it must identify the most significant with the transformation programme. Staff given blame governments for making them toothless sharks. Plugging the high earners’ leak challenges it will face over the next 10 to 20 years and responsibility for implementing the new strategy In the meantime, anyone who has sunk because they The bank windfall tax is a drop in the ocean compared to develop an understanding of the driving forces of change. should be promptly given sufficient resources and either lent or borrowed too much is accused of greed. most public deficits, and so the net widens to catch higher This broad scan must combine crisis-related trends, such autonomy, with clear accountability. Individual responsibility is lost in a sea of acrimony. earners. Indeed, income taxes are a great source of revenue as consumer frugality, with on-going fundamental shifts There is no shortage of hands waving for help, and there for governments. The UK and the French tax systems levy such as globalisation, environmental sustainability, Rethinking business models are no hands being held up in responsibility. higher taxes on those who earn more. We now see top demographic evolutions or new technologies. Scenarios Corporate distrust increased during the recession so Governments cannot coast through such waters rates of income tax reaching 50% for the small percentage can tremendously support this foresight phase and earning customers’ loyalty will require true transparency completely rudderless. The ship has to be brought under of the population in the UK who earn more than £150,000. provide senior executives with a common toolkit and from organisations, with the provision of details about control. A country with unrestrained borrowing is bad Capital gains taxes have seen reduced tax free allowances language with which to take decisions and carefully products, services, prices or environmental policies. for business. Bad business cannot sustain employment, in France and increased top rates in the UK. weighted risks. Customers must feel that they are truly at the heart of which is bad for tax revenues. So can such a listing In the UK and France income tax relief can be Thirdly, by combining the capabilities of audit with the organisation’s vision. In addition, companies must ship be righted? It has to re-float the public coffers, claimed for contributions into a pension plan. As usual, the foresight work, the organisation will be able to rethink their business models to offer cash-strapped maintain the economic status of the nation, hold the where there is tax relief it is the higher earners who decide which strategy to follow and where resources consumers more for less. Lessons can be taken from currency within a reasonable parameter, but also avoid are most able to take advantage of the concession. For should be allocated or developed. Existing capabilities companies in emerging economies like India that drowning consumers and businesses in tax. governments the biggest leak in the dam is through may be boosted by increasing dominance in certain have successfully innovated to offer value-for-money When money is tight it is impossible for governments higher earners, which is now being plugged as pension markets. New capabilities may be required to gain products and services to customers with limited to achieve all these objectives. So they must prioritise, savings reliefs are capped for the better off. I critical size in emerging niches and may necessitate incomes but growing aspirations I 56 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 57 focus focus Going back to basics: private client New rules for Credit Rating Agencies investment advice after the crisis The guardians of stability were in bed with the banks, creating unsustainable and ultimately dangerous conflicts of interest. Now the hunt is on for a better regulatory system, says Nicolas Kochan. Diversification is pivotal to every successful private investors portfolio, explains Jean Olivari, Private Banker, Coutts International Banking – yet much depends on whether you are young or old and if you chase risk or run away from it! f all the dogs that failed to bark when the financial O crisis loomed, credit rating agencies (CRAs) were the most notorious. Their capacity to lavish AAA status lot of private investors have been badly hurt by to ride a few economic cycles. on securities that were quickly shown to be near A the downturn in the markets. Some sold their Risky assets such as shares tend to be more volatile valueless would be laughable, if it were not so serious for investments at the wrong time and are now wondering but this averages out over the time invested. What this the many investors who trusted their judgement, only whether they should remain in cash and other low risk means is simply that the longer the investment time to find it was based on straw. It is no wonder financial investments, or switch out of them and into higher risk horizon the more likely the positive return outcome. centres around the world are wrestling with a means assets. Despite the increased complexity of products There is sadly no short cut. The more risk you are willing to lift their reliability and boost their transparency. available to investors in recent years (private equity and to take, the greater the potential return. The greater the The CRA’s key role is to produce a rating or mark, to hedge funds to name just two) certain basic financial margin by which you wish to beat inflation, the greater indicate the quality of a financial instrument or entity. © wikipedia/Rama principles still stand the test of time. the risk you need to take. This is used by investors as an assurance of its quality. European Union Parliament • Strasbourg In particular, diversification remains the key to An older investor, on the other hand, will have Key CRAs are Moody’s, Standard and Poor’s and Fitch. proposed what ultimately became the Wall Street successful personal wealth planning and is a cornerstone less time and will prefer income-yielding assets to Regulators’ efforts are targeted at conflicts of Reform and Consumer Protection Act (dubbed the Dodd- of modern portfolio management theory. At Coutts we complement his pension income. Of course that person interest endemic in the ratings system. Under the Frank Act after the parliamentarians who promoted it). initially do a fact-find exercise and this tells us whether might also look for some capital growth in regard to his current system the company pays the agency. Critics say The legislation seeks to tackle conflicts of interests and a person’s wealth is too concentrated in a specific area. cash and advice here should take into account appetite this puts irresistible pressure on the agency to deliver create openness. It subjects an analyst’s past work to We coin these areas “wealth preservation”, “wealth for risk, total wealth available and disposable income. a higher rather than lower score because it wants to increased scrutiny when they are hired by a customer. It enhancement” and “wealth generation”. Being able to ascertain risk is tricky with most ensure it receives the company’s future business. requires CRAs to disclose their fees, ratings history and A person with too much exposure to the “wealth people and should be done at the outset. On that And critics say CRAs operate in an inefficient provide detailed methodologies. Finally, it bans CRAs preservation” area (through exposure to cash or point most retail advisers develop questionnaires to ‘oligopolistic’ market where competition is restricted. from offering consultancy work for ratings’ clients. government bonds for example) might not be taking assess risk tolerance. Yet I often find them to be too Potential conflicts of interest often arise where a The EU has approached legislative reform faster and enough risk to generate future wealth. Similarly someone impersonal, and think that asking “what if” questions leading agency is providing several services to one client, arguably with more decisiveness than the US. On 17 who holds the majority of his assets in the “wealth with someone face to face is best. Investment advice effectively hampering its ability to provide independent November 2009 the European Parliament and Council generation” area (via private equity or other illiquid is, after all, about people and a meeting will show ratings for each separate arm of the business. approved the Credit Rating Agencies Regulation. This products for example), might be taking far too much risk - personality, which is something that determines the Peter Hahn, professor of finance at the Cass Business legislation became immediately effective in all EU that person might need a deposit to buy a house or cash to willingness to take risk. School and an adviser to the Financial Services Authority, member states. Under UK regulations passed at the buy an art painting, precipitating an investment decision The concept is critical to diversification. It is based says ‘The market for ratings would be more transparent same time, the Financial Services Authority was in what could thus be unfavourable market conditions. on the fundamental idea that a person should invest in if there were more established agencies. Instead we given charge of CRA regulation in the UK, although The art of good private investment advice is assets that deliver low correlated returns (for example, have a very few CRAs of any repute and those few the power is expected to be transferred in 2011 to a establishing what purpose each of the areas cited equities and commodities). If we invest in this way we are immensely powerful.’ Financial institutions have common European Securities and Market Authority. above play in someone’s life. In doing so, consideration can generate a higher return with lower risk. This is still connived in building this oligarchy by limiting their European CRA Regulations establish a registration for “lifestyle investing” should apply to that part of true today and most asset classes should be included investing to instruments rated by one of the top three and certification system for CRAs; EU issuers may the wealth that is available for investment. “Lifestyle in a portfolio – including equities and bonds but also CRAs. That’s hardly a recipe for neutrality. only use CRAs established in the EU and registered investing” tells us that a young investor should have alternative assets such as hedge funds, commodities The clampdown on credit rating agencies started under CRA Regulation or certain specially approved more exposure to risky assets as he will have the time and property. I in December 2009 when the Obama administration non-EU CRAs. I N.K 58 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 59 focus exhibitions Emerging markets: the path to future growth The world knows that China and India are growing fast and supporting struggling developed economies. But there are yet more markets which have yet to emerge and which offer investors opportunities, says Nicolas Kochan. he rise of the emerging markets by storm, some experts are T is one of the phenomena looking forward, beyond the of today’s business world. This BRICs to the next set of markets is reflected in the amount of that are likely to modernise at a foreign investment moving from pace. These have been given the developed to developing countries. acronym of CIVETS, standing As a result of these inflows, the for Columbia, Indonesia, currencies of the emerging markets Vietnam, Egypt, Turkey and are strengthening against the dollar South Africa. Each of these and euro. These flows are proving countries has crossed some of the catalyst for the creation of flickr/bahtiar1070’s © the hurdles required to fund Anish Kapoor | Sky Mirror, Red 2007 | Installation view Kensington Gardens, London | (28 September 2010 – 13 March 2011) | © 2010 Dave Morgan Pudong • Shanghai a new middle class, and a new their economy’s faster growth. market for Western commodities and consumer goods. For example, each has a banking system, capital markets These flows have most dramatically impacted on of some kind, cheap and plentiful labour and a middle Anish Kapoor: China and India, the so-called BRIC economies. The class eager to acquire the goods that are available as their Turning the World Upside Down in Kensington Gardens other two are Brazil and Russia. Large accumulations of countries root themselves more firmly in the global dollars have essentially made these countries the lenders economy. 28 September 2010 - 13 March 2011 | An exhibition organised by The Royal Parks and the Serpentine to the US, a reversal of the traditional role. To that extent, These countries do not of course offer the sort of Gallery | Nearest Tube: Queensway or Lancaster Gate | Open daily 6am - dusk. Admission free. the emerging markets are now calling the tune to which impact on global investment created by China and India. ||| The Royal Parks and the Serpentine Gallery are currently presenting a major exhibition of large wealthy countries must dance. The Chinese, for example, Their size is modest in comparison with those leviathans scale outdoor sculptures by acclaimed London-based artist Anish Kapoor in Kensington Gardens. maintain a currency at a low rate versus the dollar, which and in political terms their strategic position is modest The free exhibition showcases a series of major recent works never before shown together in gives Chinese-produced exports a competitive strength too. Yet smart investors may find that they boast talented London. Constructed from highly reflective stainless steel, the giant curved mirror surfaces create in the United States and elsewhere. This reality sparked and educated labour forces, as well as political stability. illusory distortions of the surroundings and are visible across large distances, creating new vistas in a debate that has consumed the G20 meeting recently The universe of emerging markets is, in short, more this famous and much- loved setting. held in Korea. No doubt it will also feed into the French complex and more dynamic than might appear at first The sculptures are sited to contrast and reflect the changing colours, foliage and weather in presidency of the G20, which is about to begin. glance. The supply of free capital will search out those Kensington Gardens. Despite their monumental scale, the works appear as pure reflection of their There are signs that the Chinese may be going some way countries where returns will be greatest and the risk surroundings: the sky, trees, water, wildlife and changing seasons. The distortions in the works’ towards accepting the position. In October, for instance, China least. Political fluidity and insecurity — a consequence mirror-like surfaces call into question the viewers relationship to both the work itself and the amazed many when it raised its interest rates by a small amount, of their shortfall in economic development — are surrounding environment. in an apparent concession to the US. Chinese growth has only one side of the emerging market issue. The other Kapoor was born in Bombay in 1954 and has lived in London since the early 1970s when he moved at such a pace that it seems hard to imagine anything is growth potential that outpaces that of developed studied at Hornsey College of Art and Chelsea School of Art and Design. Over the past twenty years but the country’s continual modernisation at a hectic rate. economies and populations eager to make the leap he has exhibited extensively in London and worldwide. I Yet while China and India take the financial world into the global economy, and work hard to attain it. I 60 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 61 agenda agenda What’s on? Wake Up To London’s New French Voice: ||| Ecoutez-here! Since November start of FRL which I am sure is going Poussin to Seurat: French Drawings from the National Gallery of Scotland 17, French Radio London (FRL) to pick up many regular listeners. They has taken to the airwaves - can look forward to a lively mix of the precipice of abstraction. London’s first French language very best of French music from the The show includes work by terrestrial broadcast station. It past and present and aimed to appeal Antoine Watteau, Eugène Delacroix, will broadcast on London II DAB primarily to French music tastes.” his contemporary and chief rival, digital radio multiplex but it is Also envisaged in the menu mix Jean Auguste Dominique Ingres, and expected to find listeners way are lifestyle programmes, cultural the Rococo master, François Boucher. beyond London via the internet. news and interviews to make up a Etchings by Jean-Baptiste-Camille Aimed primarily at London’s unique blend of entertaining and Corot, a leading light in the Barbizon 400,000 native French speakers informative output. School, mark a fascinating transition and the countless Francophiles The London II DAB network between the Neo-Classical style and - second home owners, holiday covers the Greater London area Impressionism. makers, gourmands, linguists and has the best coverage of any Fittingly, Corot’s contributions - FRL looks set to be popular of the three London multiplexes, are counterpoised by sketches from amongst addicts of all types of reaching 4.5 million households the Caribbean-born Impressionist, French music, wherever they are. (approximately 11 million people). Pascal Grierson • CEO of French Radio Camille Pissarro, whose genius in FRL’s CEO, Pascal Grierson, Pascal Grierson adds “This makes FRL depicting light comes through as comments “The preliminary research indicates that a really exciting development not only for listeners, clearly in his drawings as in his France’s “Fifth City” has a huge appetite for this station. but also for commercial partners and sponsors who better known paintings. Finally We are delighted that the French Ambassador to the will benefit from a unique platform to reach French- Claude Lorrain • Roman Landscape with a Gatehouse, courtesy of National Gallery of Scotland there is Georges Seurat himself, the UK, H.E Mr Maurice Gourdault-Montagne, has hosted speaking London residents and the wider Francophile great pioneer of pointillism. In fact an event at the French Residence to mark FRL’s début.” community.” ||| If the pen is mightier than the sword, the humble his displayed sketch of a boy dripping with water, a Olivier Jauffrit has signed up to host the weekday Some of the enterprises which have already pencil clearly has some resources of its own. So it seems draft towards his oil masterpiece, ‘Bathing at Asnieres’, breakfast show between 06.00 and 10.00. taken up the invitation to be partners of FRL include from the current exhibition Poussin to Seurat: French provides fascinating insight into the metamorphosis of After a successful broadcasting career spanning Champagne specialists, French Bubbles and special Drawings from the National Gallery of Scotland, now on Seurat’s unique vision. over 20 years in France, which included stints at Rire event organisers, Evensus. I show at the Wallace Collection, a rare oasis of tranquillity There are also many beautiful examples by lesser- et Chansons and Europe 2, Olivier moved to the UK in Find the very latest news about French Radio London at located not far from the hubbub of Oxford Street. known artists, such as Joseph-Ferdinand Lancrenon, 2003. Olivier comments “I am delighted to be in at the www.frenchradiolondon.com Speaking of tranquillity, what image can be more Nicolas Alphonse and Michel Mandevare. One other soothing than one featured work, the preliminary sketches is Louis Roguin, whose striking portrait of an Algerian by Nicolas Poussin to his oil masterpiece, ‘Dance to the Jewish woman wearing a cone-shaped hat is used in French Film Festival: Music of Time’ – itself on display upstairs in the museum. the exhibition’s publicity material. And to provide yet The exhibition is free, open to the public, and runs more variety, visitors can admire drawings by writer- ||| Bringing a compelling selection of French cinema to UK audiences till 3 January next year. What strikes the viewer is the artists, Eugène Fromentin and George Sand. for the 18th year, the French Film Festival returns to Ciné lumière extraordinary range of styles on display, the varied All works are on loan from the National Gallery of along with several other cultural hubs including Edinburgh, effects achieved by the use of different materials – quill, Scotland, where over the past 30 years canny curators Manchester and Glasgow. Stirring up a storm at Cannes, Outside lead pencil, gouache, crayon and chalk – and the unique have built up a collection of French drawings to rival the Law directed by Rachid Bouchareb (London River) will open the imprint of the individual artistic eye. And while some their French paintings. Apart from being a triumph festival. Amongst the highlights are Skirt Day, starring Cesar Award works are means to a supposedly grander end (as with of trilateral cultural co-operation between Scotland, winner Isabelle Adjani, Making Plans for Lena, Christophe Honoré’s the Poussin sketches), others are clearly little gems in England and France, the etchings also provide the latest film and ‘The Hedgehog’, the screen adaptation of Muriel their own right. perfect bait to lure visitors to the other French Barbery’s bestseller ‘The Elegance of the Hedgehog’. We are delighted The period covered spans the baroque elegance of treasures displayed in the Wallace Collection. Well to welcome acclaimed French director André Téchiné for an exclusive 18th century draftsmen, through the wistful etchings of worth visiting! I L.R.J masterclass, Pierre Etaix, the former assistant to Jacques Tati who the Romantic period and the everyday realism of socially Thursday 23rd September, 2010 - Monday 3rd January, will talk about his film ‘Le Grand amour’ shown here on a new print and Christopher Thompson who will present aware mid-19th century artists, to the compellingly 2011 | Wallace Collection, Hertford House, Manchester his first feature film Bus Palladium. I subjective gaze of the Impressionists, standing on the Square, London W1U 3BN www.frenchfilmfestival.org.uk 62 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 63 Titanic: The Artefact Exhibition book reviews ||| On 15 April, 1912, Titanic, the world’s largest ship, sank after colliding with an iceberg claiming more than 1,500 lives and damaging the world’s Phantoms on the Bookshelves Theory of the Subject confidence in modern technology. 98 years later, The O2 in London and RMS Titanic, Inc. will pay tribute to the by Jacques Bonnet, translated by Sian Reynolds by Alain Badiou, translated by Bruno Bosteels tragedy which continues to affect us through Titanic: The Artefact Exhibition. ||| This enchanting study on the ||| Theory of the Subject The exhibition will showcase more than 300 legendary artefacts conserved art of living with books, considers announces the thought of the from the Ship’s debris field, extensive room recreations as well as never how our personal libraries reveal twenty-first century. It opens up before seen footage from the most ambitious expedition to Titanic in our true nature: far more than just the path that Badiou followed © wikipedia/F.G.O. Stuart (1843-1923) © wikipedia/F.G.O. history- offering visitors a real look at this iconic ship and its passengers. places, they are living labyrinths in his two later classics, ‘Being RMS Titanic on its one and only voyage For visitors seeking an enhanced experience at the Exhibition, they offer two separate of our innermost feelings. The and Event’ and ‘Logics of Worlds’, audio guides – one geared towards adults and the other intended for children. author, lives in a house large but it enforces this opening with Each tour touches on several aspects of Titanic’s story, from her construction and launch to her ill-fated maiden voyage and enough to accommodate his a violent freshness which far the disaster’s aftermath. Audio narratives can be accessed at random, allowing you not only to enhance but also to customise many thousands of books, as well as overspill from surpasses its later developments. your Exhibition experience. I the libraries of his friends. While his musings on So beware, reader: when you open this book, you 5 November 2010 to 1 May 2011, at O2 the habits of collectors past and present are learned, hold in your hands proof that philosophers of the witty and instructive, his advice on cataloguing status of Plato, Hegel and Heidegger are still walking may even save the lives of those whose books are around today! I Dior illustrated: René Gruau and the Line of Beauty so prodigiously piled as to be a hazard. The Ghosts on the Bookshelves ranges from classical Greece to ||| A celebration of the renowned illustrator René Gruau (1909-2004), who created some of contemporary Iceland, from Balzac and Moby Dick Hidden Lives the most iconic fashion images of the 20th century. This exciting exhibition will showcase to Google, offering up delicious anecdotes along groundbreaking artworks including original illustrations for Christian Dior Parfums, vintage the way. This elegantly produced volume will be a by Sylvie Germain, translated by Mike Mitchell perfume bottles, sketches and magazines, as well as a selection of Dior Haute Couture dresses. lasting delight to specialist collectors, librarians, ||| The Barynxes are a middle- His illustrations also tell of a special understanding Gruau had of Christian Dior himself, bibliophiles and all those who treasure books. I class family. Charlam, the born of a close friendship between the two men. Gruau influenced the graphic style grandfather, who wants to take of a whole generation of fashion illustrators and the exhibition will feature specially control after the death of his commissioned pieces from six UK based illustrators, whose works will draw inspiration The Art of Struggle son, Georges, in a road accident; © SARL Rene Gruau, Miss Dior c. 1960 © SARL Rene from the rich collaboration between Gruau and the House of Dior. I Sabine, his daughter-in-law, 10 Nov 2010 – 9 Jan 2011, Embankment Galleries by Michel Houellebecq, translated by Delphine Grass who mutely but successfully ||| Notorious as a novelist, Michel wards off his encroachment. Houellebecq was first known The three sons, who seem St John’s Wood Art School and Anglo-French Art Centre: in France as a poet. In many relatively unaffected by the loss of their father and Paintings and Works on Paper by Artists from Two Leading Art Schools in St John’s Wood ways it is through poetry that who make their own way in life, sometimes to he found his novelist’s voice. Charlam’s approval, sometimes to his disapproval. ||| This exhibition commemorates the art school in London’s St. John’s Wood “The Sense of the Struggle” is Marie, the daughter, whose leg was damaged in that enjoyed several incarnations between 1878 and its final demise as the a collection of prose and verse the accident rebels against his authority. Dith, the Anglo-French Art Centre in 1951. The St John’s Wood Art School – founded in pieces which investigate issues aunt, whose undiscovered secret is her passion for 1878 – trained as many artists of repute as any art school in London. of alienation, individualism and her nephew, Georges; and Pierre, whom Sabine There was an amazing exhibition program: the first showed André Lhote; disillusionment - themes that will be familiar to chances to encounter; Mr Loyalty, the man she can another featured ‘Spanish Painters in Paris’, including Picasso, Clavé and Oscar Houellebecq readers - while subtly adopting a variety rely on in her business and who becomes a kind Francis Bacon signed print Dominguez. In addition, painters came over regularly from France to teach: of tones and styles, revealing facets of the author of honorary uncle to the children, much to the Léger, André Lhote and Jean Lurçat. Exploratory Francophile Modernism was much less encouraged at London’s unknown until now in the English-speaking world. disgust of Charlam complete the family group.. But other more renowned, long-established, mainstream yet still rather parochial art schools. Deeply melancholic and despairing at the inhumanity that is merely the surface. What gives this novel its Contemporary British artists also had an opportunity to display their work at the Anglo-French; one exhibition of the present-day world, yet brimming with vitality special flavour are the things unseen, the magma of featured Francis Bacon, Yankel Adler, Robert MacBryde, Robert Colquhoun and Julian Trevelyan, which toured and invention, these timely, poignant poems clear hopes, desires, fantasies, memories, humiliations, to Paris under a reciprocal arrangement. Yankel Adler, Francis Bacon, Jacob Epstein, Henry Moore, John Minton, away the dross of hollow optimism and call for an passions and hatreds bubbling beneath the surface Graham Sutherland acted as tutors at the sketching sessions which were held regularly. end to the nightmare of modern existence. I of all their lives. I Sadly, the Anglo-French closed in 1951, unable to bear increasing financial losses. The closing down of the Anglo- French Art Centre was a great loss – it was unparalleled in providing students with the best of European culture These books, written in french and recently translated into english, were selected by the bureau du livre de informally and expertly. I 19 November – 23 December 2010, Boundary Gallery NW8 Londres, translators and publishers 64 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 65 w ine pr ess w ine press Lebanese tipplers. Serge Hochar from Château Musar 1m bottles to reach 7m – not bad considering that the once declared: “This is how we established ourselves in total Lebanese vineland is around 2,500 hectares. Red the UK and how our 95% local market became 5%”. (It grapes include Bordeaux and Rhône Valley, blended is 15% today). together as Cabernet Sauvignon, Merlot, Grenache, Syrah Although the 1975-1990 civil war devastated the and Cinsault; and Sauvignon and Chardonnay in white. national wine market, one wartime politician, Walid One particularly impressive current project is Jumblatt, started to invest in Château Kefraya (founded Château Marsyas in the southern Bekaa. The Syrian 1951). Now Massaya, a joint venture between two Saadé brothers own and run this high altitude estate; Lebanese brothers and three famous French wine- they also founded Domaine de Bargylus, the first A Lebanese journey into my wines makers, provides a perfect example of a post-war boom modern vineyard in Lattakia in Syria, assisted by the in new vineyards. Most ventures are led by wine lovers famous French wine-maker Stéphane Derenoncourt at of Lebanese origin returning home, such as Akram both domains. Early tasting suggests that bottles from Lebanon has a long, rich and often tempestuous history – and one of the oldest wine-growing Kassatly of Château Ka, Naji Boutros of Château Belle- both sides of this very symbolic border may be ones to traditions on the planet. Now Thibault Lavergne reveals how Western connoisseurs are waking Vue, and the CEO of Nissan-Renault, Carlos Ghosn (born watch in the next few years. I up to Lebanese viticultural delights. in Brazil to Lebanese parents), who recently invested in Thibault Lavergne is the managing director of Wine Story Ltd a new winery called Ixsir. Sources: Journey into the Mind’s Eye by Lesley Blanch, travel book writer and first wife of Romain Between 2005 and 2009 Lebanese wine sales rose by Gary. Wines of Lebanon by Michael Karam, Le Liban contemporain by Georges Corm hen 11 wineries from Lebanon showed off their Wlatest products at a special trade and media tasting in London on 4 November, many buyers and journalists The Cheese of the Month by La Cave à Fromage: Vacherin started asking: How come Lebanon has so many producers, and why didn’t we know about them before? ||| Who would think that French rivalry was only confined to our For most people, Lebanese wines consist of only British friends? It would be selfish not to count on our neighbours three or four domains, led by the iconic Château on the eastern front, Switzerland. Of course subjects of envy include Musar. But Lebanese viticulture is much richer than Voltaire and William Tell, but let’s not forget one more, a unique the cliché of dedicated men who kept making wine cheese called Vacherin Mont D’or. under the rigours of civil war during 1975-1990. In fact Produced on both sides of the border along the Jura range, the presence of 11 ‘Union Vinicole du Liban’ producers this very seasonal product is made from 15 August till 15 March; in London testifies to a tradition of some depth. when milk is in short supply in mountains during winter months. © flickr/heatheronhertravels Situated at the eastern end of the Mediterranean, Wines from the famous Château Musar Making large cheeses such as Comte and Gruyère is problematic, Lebanon is bordered by Syria to the north and east as each cheese requires 400 litres of milk. 30 Farmers decided to and Israel to the south. Just half the size of Wales, the ended in the 13th century, the only entities that cared produce a much smaller cheese, the Vacherin. © wiki/NEON ja country boasts two majestic mountain ranges that run for viticulture till the 19th century were monasteries, Solely made at a minimum altitude of 700m, circled with a thin Vacherin • brings a smile to one’s face in parallel vertical lines down its middle. And nestling such as the remote Hamatoura in the Koura valley. layer of epicea wood, it is then finished to mature in a wooden box, using local pine woods. Pick it when lightly between these peaks sits the Bekaa valley, where most In 2003 the Maronite Church hired a French beige and wrinkly on the top, eat it either cold or warm it up in the oven, it will always bring a smile to one’s face. of the vineyards are located. oenologist to oversee wine making at all of its 75 What is now Lebanon was home to some of the monasteries. Château Ksara, today Lebanon’s biggest Wines to accompany the Vacherin earliest winemaking anywhere, dating back to 7000 wine producer (2.2m bottles) began life in 1857, founded BC. Four millennia later the Phoenicians, the original by Jesuits. But Lebanese typically drink arak, a grape- ||| How do you like your Vacherin? At room temperature, gently Lebanese, were exporting wine from Byblos, Sidon and based aniseed liqueur, and many local winemakers warmed by the heat of the oven, or perhaps you prefer it toasty Tyre. Between 900-300 BC Lebanese wine spread to began life distilling this brew. from the flames of a fireplace on a cold winter’s day? Whatever Egypt and Carthage in North Africa, to Cyprus, Greece, Meanwhile the French were returning to old haunts, the thermometer says there is a wine to suit. For those who like Ancient Rome, Sardinia, Spain and even to France. Still as when François-Eugène Brun founded Domaine des their cheese slightly chilled or at room temperature, I propose today tourists visiting Baalbek in the Bekaa valley Tourelles in 1868. In 1920 France was awarded the a light bodied red like a Beaujolais from Claude Bernardin, or a can marvel at the spectacular 2nd century Temple League of Nations mandate for Lebanon and Syria, and Fleurie from Patrice Barraud, or in white an Alsace Riesling like of Bacchus (god of viticulture), proof of a distinctly French soldiers and civil servants were keen customers Les Hospices from Gerard Neumeyer. Lebanese role in the genesis of wine. for pioneering labels, such as Château Musar (founded But if you prefer your slice creamy, runny and warm, remember Of course the Levant is also the birthplace of Judaism in 1930) and Vin Nakad (1923). After the French left in that heat brings out a fruitier taste. So you could try an aromatic and Christianity, and wine production increased to 1946, Lebanese producers began exporting their bottles Gewurztraminer Alsace as a complement; or, by way of daring © wiki/Saxifrage meet their sacramental needs. In the 8th century when to Diaspora populations in France, London, North and contrast, why not a dry Arbois or a white from Roussillon, such as Gewurztraminer grapes on the vine Muslims conquered the land, and after the Crusades South America, Australia and Africa; and then to non- Cuvée Alexis from Domaine Seguela? 66 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 67 @ the chamber... the chamber... branded with the De Beers Marque. The De Beers Passport documents the specifications of a diamond chamber news : introduction jewellery and is the guarantee that every single De Beers diamond is natural, untreated, conflict free and responsibly sourced and manufactured. The De Beers Marque uses technology patented by the De Beers Group invisible to the naked eye and ensures that each stone is individually catalogued in the De Beers he French Chamber has had an exceptionally active While the events have been proceeding apace, our diamond registry where it will retain its identity as a De Beers official diamond, to provide each customer Tautumn. Three of our trophy annual events were membership team have been busy recruiting new with total peace of mind. held in October and November. Each was greeted with members. Over the last two months, we have gained 31 great acclaim and entertained the many Chamber new members to our ranks. members and their guests. Let us now look forward to the forthcoming 7 New Corporate members: The Dîner des Chefs, held under the auspices of the Ambassador’s Brief, on December 2. Here we will Chamber’s Luxury Club, offered an opportunity for be addressed by the Ambassador about the French Bridor UK www.groupeleduff.com us to taste and appreciate the work of distinguished government’s plans for its tenure of the Presidency of We assure daily delivery of bread and pastry, selecting recipes that respect the French traditions. Hotels, coffee shops French Chef, Hélène Darroze. The Dîner de la Rentrée, the G20, at a time when today’s European economic and contract caterers appreciate our know how. We are committed to respond to your expectations of quality, freshness sponsored by Alstom, was addressed by Alstom CEO environment is so uncertain. This will indeed be a and reliability of service. Patrick Kron. The event was important both for the most important event. Represented by Marco Lindic, Managing Director quality and relaxed nature of Mr Kron’s speech as for the food and delightful atmosphere. 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He Today Chaumet continues to develop internationally with more than 70 boutiques situated in the world’s major capitals CBI, spoke with authority and aplomb. replaces Antoine Pin, the CEO of LVMH watch and including two boutiques in London (Harrods and New Bond Street). The Business Club Cocktail, held on 9 November, Jewellery UK who is now general manager of LVMH Represented by Emmanuelle Landes, Boutique Manager and sponsored by Jersey Enterprise provided an watch and Jewellery in Japan and Korea. opportunity for Senator Maclean, Jersey’s Economic The Human Resources Forum has also changed Edenred www.edenred.co.uk Development Minister to address the Chamber on the chairman with Karan Hutchinson, the group human Helping organisations engage and motivate people to achieve enhanced performance. In the UK, Edenred offers a unique island’s industry and financial opportunities. resources director at AXA UK taking over from Nicolas and unrivalled total reward solution, encompassing: Employee Benefits, Incentives and Rewards, Expense Management, The Franco British Business Awards, held while this issue Moreau. He has returned to France, having taken the Communication Services. of INFO was in production, provides a showcase of the best new role of CEO of AXA France. Represented by Patrick Langlois, Managing Director Edenred - UK Group and most innovative French and British companies. This We thank both departing chairmen, Antoine and year’s awards is our tenth, and thus has added significance. Nicolas, for their excellent efforts and welcome our new Knight Frank www.knightfrank.com It will of course be covered in depth in our next issue. ‘chairpeople’. We wish them luck in their new posts. I Knight Frank estate agents are widely regarded as the market leader for high quality commercial and residential property in London and throughout the UK. We have over 200 offices worlwide across 43 countries, including 20 network offices in France. We’re passionate about property and are professional in everything we do, which is why we are the world’s largest privately owned global property agency and consultancy. 1 new Patron member: Represented by Jemma Scott, Head of Residential Corporate Services De Beers Diamond Jewellers represented by François Delage, CEO www.debeers.com The Dorchester www.thedorchester.com The Dorchester in the heart of Mayfair overlooking Hyde Park embodies the highest service values whilst its design and De Beers Diamond Jewellers was established in 2001 as an independently managed and operated character exude 1930s glamour with a contemporary edge. company by De Beers SA, the world’s premier diamond mining and marketing company, and Prized for its spacious and beautifully designed rooms and suites, The Dorchester’s restaurants and bars – Alain Ducasse, LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group. China Tang, The Grill and The Promenade – also attract Londoners and the glitterati alike. The Dorchester Spa was recently De Beers Diamond Jewellers is the ultimate destination for diamond jewellery. With transformed to create the most desirable and indulgent pampering destination in London. over 120 years of diamond experience to draw on, De Beers Diamond Jewellers go well Represented by Céline Saffray, Senior Sales Manager beyond the 4C’s to capture Fire, Life, and Brilliance in diamonds, providing the very best diamonds in the world set in the most magnificent designs to create the sublime. Deltalyo & Valmy Ltd www.valmy.eu | www.deltalyo.com The creation of timelessly elegant diamond jewellery – from selecting the world’s finest With both our factories in France we supply Respiratory Masks, Personal Protective Equipment, hygiene consumables and diamonds to impeccable craftsmanship and sophisticated designs – is the De Beers Anesthesia devices. Also involved in spraying equipment we deliver our ranges to car body distributors. Difference, an absolute expression of the Art of Diamond Jewellery. Represented by Sandrine Grange, Export Manager Each De Beers diamond is certified with a De Beers passport and those above. 20 carats is microscopically 68 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 69 @ the chamber... @ the chamber... Recent Events Saffery Champness www.saffery.com Saffery Champness is one of the UK top 20 firms of chartered accountants and has over 150 years experience providing tailored financial, tax and business advice to private-wealth clients and to owner-managed entrepreneurial businesses. 27th October: ‘Dîner des Chefs’ hosted by We have particular experience in the Media & Entertainment, Professional & Consultancy (recruitment, travel), and Property sectors. Saffery Champness is a member of Nexia International, a leading worldwide network of independent, high quality and innovative accounting and consulting firms that operate from 105 countries, comprising 590 offices Hélène Darroze and the Connaught host and over 20,600 personnel. Represented by Frédéric Larquetoux the Chamber’s first ‘Dîner des chefs’ 23 new Active members: ||| The French Chamber’s her to pursue a career in Anthony & Co UK Ltd Formulas4life London UP! Accommodation Luxury Club held a highly high-class cooking and Financial Advice Consulting - Educational and Accommodation successful ‘Dîner des Chefs’ at insisted that there was Professional Training Represented by Represented by the Connaught Hotel Mayfair certainly a place for a Bérangère Hassenforder, Represented by Rafael Dos Santos, Director Managing Director Keenan Kate, Business Psychologist www.londonup.com on 27 October 2010. Some 100 woman therein. www.formulas4life.com members and guests attended In 2008, Hélène took www.antcouk.com Panasonic Europe Ltd a glittering affair in a splendid over the restaurant at The AS24 Fuel Card Ltd Howard Kennedy Electronics Fuel/Transport Legal Represented by West End location. Connaught Hotel. Her Represented by Represented by Masako Hiraki, The Michelin-starred cuisine combines a subtle Sharokh Koussari, Partner Manager, CEO Office Xavier Bourat, Chef who provided a blend of tradition, modernity, Managing Director www.howardkennedy.com www.panasonic-europe.com unique signature menu audacity and refinement. www.as24.com I-D Media Les Petites étoiles was Hélène Darroze. She Nathalie Seiler-Hayez, Hélène Darroze, Thierry Outin, Florence Gomez It was only fitting that Beavis Morgan Digital Communications Agency Education Audit/Accounting Represented by Represented by spoke at the dinner about the very first ‘Dîner des Represented by Patrick O’Donovan, Philippe Fraser, Director her enthusiasm for the quality of British produce Chefs’ was held at the exclusive Connaught Hotel. From François Debertrand, Managing Director www.lespetitesetoiles.co.uk and indeed cuisine, about her aspirations for the the opening cocktail kindly sponsored by Pommery, or www.i-dmedialondon.co.uk Head of International Development Radisson Blu Portman Hotel Connaught and about her vision for cooking and taste. the exquisite after dinner vintage cognac sponsored by www.beavismorgan.com IMG Hospitality Industry She delivered a fantastic speech sharing with the Pernod-Ricard, to the great gifts generously offered by Sports Represented by CdeC by Cordelia de Castellane audience her passion, savoir faire and her exceptional The East India Company and Ladurée, the evening was Retail Represented by Hubert Losguardi, Represented by James Dale, Account Manager Sales Executive entrepreneurial spirit. The Chamber was honoured to a total success and has indeed set the bar high for all Cordelia de Castellane, www.imgworld.com www.radissonblu.co.uk enjoy the catering of this hugely talented Chef who has future ‘dîners’ in this series as we look forward to the next Director In1 solutions ResFamiliaris LLP a distinguished pedigree performing in a masculine installment taking place at Raymond Blanc’s Manoir aux www.cordeliadecastellane.com Hospitality / Technology Banking & Finance culinary world. Quat’Saisons in March 2011. The chamber wishes to thank Represented by Represented by Currency Change Ltd Hélène Darroze, the Connaught as well as all sponsors Foreign Exchange Provider Richard Toms, Jérôme Lazare, Who is Hélène Darroze? and participants I Represented by UK Business Development Manager Managing Partner Laurent Guilbaud, www.in1solutions.com www.resfamiliaris.com This exquisite evening was an opportunity to celebrate Managing Director ING Europ Showroomprive.com the work and career of Hélène Darroze, one of France’s What is the Luxury Club? www.currencychange.eu Industrial engineering e-commerce foremost Chefs. She proudly belongs to a longstanding The Chamber’s Luxury Club brings together CEOs and The East India Company Represented by Represented by gastronomic heritage, representing the fourth generation directors operating within luxury markets, including Retail/Luxury Pierre Coudour, Administrator Thierry Petit, Founder and CEO www.ing-europ.com www.showroomprive.com of a family of cooks, hôteliers, and restaurateurs from fashion labels, gastronomic restaurants, five star hotels, Represented by the Landes. Her great grandfather had opened the inn luxury food and beverage brands. All these companies Arjan Overwater, JSD Event Tenesol SA CEO Event production & branding marketing Photovoltaics « Le Relais » at Villeneuve-de-Marsan in 1895 which was face similar challenges of a changing marketplace and www.eicfinefoods.com Represented by Represented by carried on by her grandparents, and then by her father. consumer base. Bastien Dupuy, Benoît Rolland, As a child she was greatly influenced by the markets of The Club provides not only an opportunity for French Radio London Director & Project Manager General Manager the Basque country where her father bought products of networking, but useful sharing of experience and Radio Broadcasting www.jsdevent.com www.tenesol.com Represented by the Landes soil: cepes, foie gras, etc. expertise. Many of its meetings are held exclusively Khindria & Co Pascal Grierson, Vranken estates After graduating in 1990, she spent three years at the for senior directors within the luxury sector. The club CEO Law firm Champagne www.frenchradiolondon.com Represented by Represented by gastronomic restaurant Louis XV in the Hôtel de Paris holds three breakfast meetings per year in luxury Tony Khindria, Thomas Lambert-Laurent, in Monte Carlo. The restaurant was run by celebrated hotels, as well as three ‘Dîner des Chefs’which allows Solicitor-Partner-Avocat à la Cour Managing Director Monégasque Chef Alain Ducasse, who had just gained the Club to be accessible to other Chamber members. www.khindria.com www.vrankenpommery.com his prestigious third Michelin star. Ducasse encouraged 70 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 71 @ the chamber... @ the chamber... Recent Events 8th November: ‘Dîner de la Rentrée’ sponsored by The power of business: Patrick Kron at the Chamber’s ‘Dîner de la Rentrée’ National differences can be overcome by companies working together, across borders and across cultures. Alstom is one such bridge builder says Patrick Kron, speaking at the ‘Dîner de la Rentrée’. ||| ‘Business has done much to bring our two countries Mr Kron went on to discuss the three elements of much closer’, said Patrick Kron, addressing this year’s ‘Dîner the Alstom empire. They are power generation, power de la Rentrée’. He went on to outline the role of Alstom in transmission and rail infrastructure. building British transport, power and energy infrastructure. ‘We’re key to the construction of power plants for a (Left to right) Ian Fisher • Stephen Burgin • Arnaud Vaissié • Florence Gomez • Patrick Kron • Vincent de Rivaz Mr Kron was speaking to the French Chamber on 8 wide range of energy sources – hydro, nuclear, gas, coal November, at an event sponsored by Alstom, which took and wind. Around one third of all nuclear power plants Looking more specifically at the UK’s energy supply, opportunity for the UK.’ The Chamber wishes to thank place at Renaissance London Chancery Court Hotel and across the world are equipped with Alstom turbines and Mr Kron said ‘more electricity can be produced using less Alstom for its very loyal support and particularly Patrick brought together more than 200 participants. He paid tribute we are today building four of the six new gas fired power fuel, which means lower pollutant and carbon dioxide Kron and Stephen Burgin, Country President of Alstom, as to the French Chamber of Commerce in Great Britain saying stations here in the UK. We are in the forefront of new emissions. Our solutions keep 90 per cent of thermal well as all the participants and the Renaissance London it has done so much to foster this special relationship. ‘It developments in power transmission, with a focus on power plant emissions out of the atmosphere. We are a Chancery Court hotel staff. I has been doing this good work since 1883 promoting trade smart grids. We build the fastest train and the highest world leader in hydropower and a growing presence in and investments between France and Britain and providing capacity automated metro in the world.’ the geothermal and wind power industries. In wind, we Bouygues: Winner of the both business communities with specialised services and a Mr Kron said the company was ‘accelerating work and are developing a high capacity offshore turbine and are forum – like tonight – where we can come together to share investment in carbon efficient solutions including leading the currently building major onshore projects in Wales and INTERCULTURAL TROPHY our knowledge and discuss our interests.’ world in carbon capture for the power generation industries.’ Scotland at Europe’s largest wind farm, Whitelee.’ FOR BUSINESS EXCELLENCE Mr Kron observed that the company had just completed For the 13th year running, our Trophy – designed the conversion of the Drax coal station to be able to use by Cartier – was presented to the member of the biomass as fuel, making it the largest co-firing plant in Chamber elected by other fellow members as the world. ‘With so much knowledge in so many areas, having made particular efforts to develop stronger we are a major player in the UK energy sector - whichever ties between our two countries or to promote technologies are in the energy mix.’ Franco-British cross-cultural relations. The company has been praised for its work with Virgin Trains and the Alstom Pendolino fleet on the West Coast Mainline, as well as for the Alstom trains on London Underground’s Northern and Jubilee Lines. ‘Both projects are today considered as benchmarks in fleet performance and management.’ Alstom is heavily involved in discussions about the UK’s high speed rail programme. ‘We would expect to play a most active role in the supply of both trains and infrastructure, thanks to our established position as world leader in high speed rail technology most notably with the TGV in France and the AGV soon to be in service in Italy. Combined with rolling stock replacements, upgraded Last year winner, Julien Planté, Operations Director & Head of signalling and new infrastructures, the high speed Programmes at Cinémoi, handing over the Trophy to this year winner: Guests at the Dîner de la Rentrée option represents an incredible challenge and a major Arnaud Bekaert, Deputy Managing Director of Bouygues UK 72 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 73 @ the chamber... @ the chamber... AGS FW_London_h221mmXw76mm_hires.pdf 2010/11/17 09:29:54 AM Recent Events and building the bank’s image and communication. ‘The goal is to be the relationship focused bank for our clients and know the commitment of our teams. The universal banking model has proved its resilience 12th November: Annual Financial Lunch sponsored by through the crisis.’ Mr Fisher said they would not need to raise new capital to meet Basel criteria. The London operation is a key platform for the bank, in leasing, private banking and corporate banking. Mr International Cooperation: Fisher also said ‘banks provide an important role in supporting the real economy.’ Key to success of reforms The bank provided over 4 billion Euros for social and ecological projects, in hospital and universities Helen Alexander, guest speaker at the Chamber’s Annual Financial Lunch, said that if guests and these helped to provide jobs. ‘We see ourselves as an integral part of the wider economy.’ took one message from her speech, it should be the importance of international cooperation. After Ian Fisher, the lunch was addressed by Helen Alexander. She said that ‘delivering stability to our industries without causing long-term damage to competitiveness is not going to be easy. Some reform will be necessary if we are to avoid repetition of the last crisis. The cost of that to the internationalC economy, to individual countries’ fiscal positions M and to business has been immense. Some of the figures have been breathtaking. EU government’sY commitment to aid amounts to 30% of EU GDP.’ CM Helen Alexander went on to say that ‘we can’tMY put a figure on the cost to reputation to institutions, CY regulators and to banks. ‘ Reforms need to prevent a repetition of theCMY crisis and help restore trust. This can’t be achievedK just through regulatory change. The CBI has three tests for financial sector reform. She asked if the proposed reforms first, delivered better management of systemic risk, therefore reducing the economic impact and exposure of the public purse in the event of a future failure. Second, will they enable financial service firms to play an efficient role in the economy and finance the recovery?, and third, are they internationally coordinated and effective to avoid undermining the competitive advantage of any single (Left to right) HE Maurice Gourdault-Montagne • Ian Fisher • Helen Alexander • Arnaud Vaissié country, or indeed harming their economy. She acknowledged the importance of Basel and ||| The key point to the reform of the international The lunch, held at the Sofitel St James, was the changes to capital requirements. ‘These have financial system is the importance of international co- attended by some 150 guests from the French and been endorsed by the G20. She said that the Financial operation. ‘If you remember nothing else about my British financial community. Stability Board had made recommendations about speech, that should stay in your minds.’ So exhorted The Chief Country Officer of Société Générale, Ian supervising Systemically Important Financial Helen Alexander, in addressing the Annual Financial Fisher introduced the speaker. Mr Fisher began by Institutions (SIFIs). The Chamber wishes to thank Lunch, held on 12 November. This was sponsored by introducing the guests to a recent project of SocGen Société Générale who have sponsored the Annual Société Générale and Helen Alexander, President of called Ambition 2015. This was launched in June 2009 and Financial Lunch since its very first edition in 1998, Ian the Confederation of British Industry (CBI), was the involves a total of 50 projects. It focuses on four pillars: Fisher, Helen Alexander as well as all the participants guest of honour. clients, employees, strengthening operating model and the Sofitel.I 74 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 75 @ the chamber... @ the chamber... Recent Events forthcoming events 9th November: Chamber’s Business Club Cocktail sponsored by 2nd december 2010 Ambassador’s Brief Enterprising spirit still rules in Jersey says Senator Maclean Ambassador’s Brief 18.00 - 19.30 At the Residence of the French Ambassador Addressing an enthusiastic gathering of nearly 80 Chamber members at the Radisson Edwardian Bloomsbury Hotel in central Maurice Gourdault-Montagne London, Senator Maclean spoke affectionately French Ambassador to the UK and informatively about the British Crown ||| His Excellency Mr Maurice Gourdault-Montagne, French Ambassador to the Dependency that is actually much nearer United Kingdom will address Patron and Corporate Chamber Members on the Normandy than it is to England. theme “France-UK Summit 2010/ Declaration on Defence and Security Co-operation/ In fact the Senator devoted many words to the French presidency of the G20”. The speech will be followed by a Q&A session. island’s thriving links with France, as evidenced by regular meetings with the governments of For more details, please contact Jonathan Rosen on [email protected] or on 020 7092 6638 Brittany and Normandy, a new sea route linking Jersey with Cherbourg, and the holding of Tour de Bretagne cycle race partly on the island. Another tie he stressed was with the Chamber 27th January 2011 itself. The idea for the Jersey Cocktail arose out of a ‘Retail Industry Event with Special Guest Speaker Michael Ward Senator Alan Maclean, Peter Alfandary, Clive Boothman successful debut visit by Chamber Patron members ||| Despite what the map might suggest, Jersey is not an to the island in May this year. The Patron trip was sponsored by 18.00 - 20.00 island – at least not in economic terms. So said Senator Mazars, BNP and Jersey Enterprise. VENUE TBC Alan Maclean, Jersey’s Economic Development Minister, Senator Maclean also said that Jersey was “still open in a well received speech at a Business Club Cocktail for business” and that its “spirit of enterprise, innovation Michael ward hosted by the Chamber on Tuesday, 9 November. and opportunities” was in no way diminished. “We were managing director of harrods Amplifying his argument, the Senator described how from fortunate to have been in such a strong position at the ||| Michael joined Harrods as Managing Director in March 2006 from Apax, a leading fishing, wool making and agriculture to trading and popular beginning of the downturn”, he added. “We had no debt, private equity company specializing in retail investments. Prior to Apax Michael was a member of the Board of Celesio AG running Europe’s largest pharmacy chain tourist locations, Jersey has long punched above its weight in considerable cash reserves and a stabilisation fund, set up with leading position in six European countries. Michael is a fellow of the Institute relations with its larger mainland neighbours. More recently, from savings during the boom years”. of Chartered Accountants in England and Wales, holds a Masters degree in Business of course, it has built a “world renowned financial services While not minimising financial challenges, the Senator Administration and is a member of the Institute of Corporate Treasurers. centre that now acts as our economic powerhouse”. assured listeners that his government strove for economic growth, based on five pillars or principles, with “diversification For more details, please contact Cécilia Gonzalez on [email protected] or on 020 7092 6643 high on the agenda”. To illustrate these points he cited the many enterprises that had relocated to Jersey, and island laws that presciently targeted markets in Middle East and Asia. Alan Maclean worked extensively in marketing, public relations and property management, before being elected to the island’s parliament in 2005. He took up his ministerial post in 2008. Also addressing the event was Clive Boothman of Jersey Finance. His experience working in the City for the likes of Schroders, Gerrards, Cofunds, Arthur Young and Ernst & Young showed through in a talk that elicited many lively questions. www.delahayemoving.com London • 020 8687 0400 [email protected] The Chamber wishes to thank Jersey Enterprise, Senator Maclean and Clive Boothman as well as all participants and the Radisson Edwardian Bloomsbury Hotel I 76 - info - december 2010 / january 2011 info - december 2010 / january 2011 - 77 Questionnaire De Proust François Ozon ne of the most important young directors and screenwriters in the “New Wave” in French cinema, François O Ozon was born in 1967 in Paris. After taking a master’s degree in Cinema (Paris I), he entered the famous French school of cinema La FEMIS, in 1990, specialising in the craft of directing. Since then, he has achieved international acclaim for his films ‘8 femmes’ (2002) – starring such icons of French cinema as Catherine Deneuve, Fanny Ardant, Isabelle Huppert and Emmanuelle Béart – and ‘Swimming Pool’ (2003) starring Charlotte Rampling and Ludivine Sagnier. Ozon is an “enfant terrible” who is never afraid to tackle taboos. Already a veteran of 12 features and many more shorts, he uses both satirical and serious modes to provoke strong reactions on a range of sensitive social, sexual and political issues. One of his most recent works, ‘Le Refuge’, has been released as a DVD on 8 November in the UK. It stars some of France’s finest talents including Isabelle Carré, Melvil Poupaud and Louis-Ronan Choisy. My favourite colour Black © wikipedia/César The flower I like A white rose My favourite animal The penguin My favourite prose author Virginia Woolf My favourite poets Arthur Rimbaud My hero in fiction No God, no master, no heroes libraries. VINCI and subsidiaries photo im Shaw, t My favourite composers Ravel, Debussy, Mozart, Bach CONStruCtING A SuStAINABle future My favourite painters credits: © Photo Egon Shiele, Balthus What I hate the most of all At VINCI Construction Grands Projets, we engineer solutions that are not only Waking up at night to go to the toilet financially competitive, but work sustainably for the planet. Superior design and construction practises are helping us save 20,000 tonnes of CO emissions in My favourite food and drink 2 Chocolate and red wine two years. At Clackmannanshire Bridge in Scotland we responded innovatively to The principal aspect of my personality sensitive environmental factors. We’ve left a legacy of reduced traffic congestion To know how to bounce back The military event that I admire the most and pollution for local residents, and have enlarged the local wildlife habitat by I don’t like military events, but I think the The quality that I desire in a woman uniforms can look quite sexy… hectares. Just one way in which VINCI Construction Grands Projets demonstrates Her hair sustainability leadership. The gift of nature I would like to have What I appreciate most about my friends To eat without getting fat The way they indulge me To learn more please visit www.vinci-construction-projects.com/british-isles My present state of mind My main fault Confused and excited To test the limits and keep on pushing Faults for which I have the most indulgence: My favourite occupation Making movies My own faults My dream of happiness My motto I don’t have one, because I think at least twice before enjoy being unsatisfied opening your mouth 78 - info - december 2010 / january 2011 www.c .tv i nemo Gaspard Ulliel i , Photo © Ki Price, Cannes Film Festival 2010 Now available on Virgin Media, channel 445 channel Media, Virgin on available Now