Square Mile Magazine - Issue 45 - 'A Time to Rebrand?'

The tricky business of reinventing your bank’s identity£3.25

ISSUE 45

PLUSTHE DAILY

TELEGRAPH’S ALEX ON HIS

BIGGEST BONUS EVER

A TIME TOREBRAND?

THE VOICE OF THE C ITYTHE VOICE OF THE C ITYsquaremile

SM 220x276 Layout.indd 1 14/01/2010 10:01:47

SM 220x276 Layout.indd 1 14/01/2010 10:05:37

ADs.indd 22 10/8/09 17:34:37

ADs.indd 23 10/8/09 17:35:04

SM 220x276 Layout 1 26/10/2009 13:16

www.speake-marin.com

SM 220x276 Layout 1 26/10/2009 13:17

Admiral’s CupLimited Edition of 10 piecesworldwide.

Adm

iral’s

Cup

nam

e ap

prov

ed b

y th

e Ro

yal O

cean

Rac

ing

Club

, Lon

don.

+44 (0) 1932 574 674 [email protected]

The Admiral’s Cup Black Hull 48. Corum CO753 exclusive movement, chronometer certified. A unique black automatic chronograph with pushers lock. Bezel set with 72 black diamonds, 1.38ct.

Corum-Hedge Magazine-Black Hull Ad:Layout 1 26/10/09 21:25 Page 1

SM 220x276 Layout 1 28/10/2009 16:05

Martin Deeson, [email protected]

© Square Up Media Limited 2009. All rights reserved. No part of this magazine may be reproduced without the written permission of the publisher. All information contained in this magazine is, as far as we are aware, correct at the time of going to press. Square Up Media cannot accept responsibility for errors or inaccuracies in such information. If you submit unsolicited material to us, you automatically grant Square Up Media a licence to publish your submission in whole or in part in all editions of the magazine. All material is sent at your own risk and although every care is taken, neither Square Up Media nor its employees, agents or subcontractors shall be held liable resulting for loss or damage. Square Up Media endeavours to respect the intellectual property of the owners of copyrighted material reproduced herein. If you identify yourself as the copyright holder of material we have wrongly attributed, please contact the office.

To receive your complimentary subscription to square mile visit

squaremileclub.com/subssquare mile uses paperfrom sustainable sources

CERTIFIED DISTRIBUTION:26,867 (Jan-June 2009)

▶ GEORGINAWILSON-POWELL… is a freelance journalist based in Dubai who regularly writes about arts, culture, travel and business for a range of both Middle Eastern and UK press.

◀ MICHAEL MORITZ… is a venture capitalist with Sequoia Capital and has also been a member of the board of directors of Google, Inc. He is ranked number 2 on the Forbes Midas List of top deal-makers.

◀ ROGER BOOTLE… is one of Britain’s best-known economists, and writes regularly for the Daily Telegraph. He is MD of Capital Economics, economic adviser to Deloitte, and advisor to the Treasury.

FRONT COVERThis month, Martin Hargreaves illustrates the changing shapesof bank brands. On p34 Georgina Wilson-Powell asks if rebranding is intelligent strategy or just a knee-jerk reaction to the current climate.

WHO WOULD WIN in a fi ght: tigers v sharks? It’s one of those questions you can spin out for at least half a pint. The right answer is: it depends on where the fi ght is fought. On land, and the big fi sh ain’t looking so clever. Underwater? Well, then its curtains for Tony Tiger.

Who would win in a fi ght: the City v the government? Again, it depends entirely on the battleground on which such a clash of the Titans was picked. If the government tried to take on the City on the area of fi scal policy (as they have done) then how could they ever hope to win? On the one hand, you’ve got the government: the institutional equivalent of a blue whale – huge, bloated, slow to anger, pretty useless in a ruck and made largely of blubber. On the opposing side you have the City: some of the cleverest minds in Britain, devoted to making money with their friends, Britain’s most highly paid and cleverest lawyers and tax advisers. A blue whale picking a fi ght with a pack of lions, if you will, on the Serengeti. Whale down.

Wouldn’t it have been better if the government had picked a different fi eld of war? Instead of trying to outsmart the cleverest animals in the jungle (not gonna happen) maybe they should have tried to get the hyenas on side. Instead of attempting to levy an unworkable 50 per cent tax on bonuses with a myriad negative consequences, why not launch a ‘Bankers Save Britain’ campaign? Call on all bonus recipients to donate ten per cent of their net bonus to a new fund, rather like the lottery fund, whose remit is to help the urban and rural unemployed and save people’s homes from getting repossessed. Anyone who donates gets their name published in the newspaper. And a tax break. Result? The poor win. Government wins. Bankers get a PR boost. But I guess it’s because of ridiculous ideas like that that I’m just a hack, and not a big dead blue whale.

▶ ANGELA KNIGHT... is chief executive of the British Bankers’ Association. This month she begins her new column for us. On p53, the ‘White Knight’ rides to the City’s rescue and says, don’t kill the golden goose.

The voice of The c iTysquaremileEDITORMartin Deeson

DEPUTY EDITOR Mark Hedley

ART EDITORMatthew Hasteley

CITY EDITORJon Hawkins

ASSOCIATE EDITOR Eugene Costello

FASHION EDITORAmelia Pruen

EDITORIAL ASSISTANTEmma Taylor

CONTRIBUTORSJamel Akib, Mike Baghdady, Roger Bootle, Lou Cooper, Bernadette Costello, Gareth Groves, James Gurney, Angela Knight, Antonia Methuen, Steve McDowell, Michael Moritz, Guy Paterson, Charles Peattie, Russell Taylor, Russ Tudor, Georgina Wilson-Powell,Saul Wordsworth

JUNIOR DESIGNERKaterina Varnavides

DESIGN INTERNLucy Phillips

PRINTINGColourfast Europe

M E D I A

MANAGING DIRECTORTim Slee

MARKETINGClare Brind

PRINT ADVERTISING Michael Berrett, Mark Edwards, Christian Morrow, Kevin Rudge, Tom Rutherford

EVENT ADVERTISINGVicky Miller, Alex Watson

ACCOUNTSSteve ColeNatalie Jackson

CONTACT020 7819 9999 ☎

SQUAREMILE

squaremileclub.com JANUARY 7

EDITOR’S LETTER

CONTENTSSQUARE MILE

ISSUE 45

40

2074

▼ CITY50 STEVE JOBSMichael Moritz on the man who founded Apple, twice.

53 ANGELA KNIGHT The BBA chief calls for sensible reform of the banking industry.

55 POST-ITS Novel approaches to tax avoidance, a £2k Lambo and what to do when the double dip comes (stockpile guns, since you asked).

56 EXECUTIVE CLASS Kuoni CEO Peter Rothwell on how the luxury travel market is responding to challenging times.

59 HERD MENTALITYWhy group infl uence means the markets aren’t always right.

60 GOLD RUSH Mike Baghdady looks at therise of the commodities markets.

62 KEEP IT IN THE FAMILY Where should wealthy families put their cash in the wake of the crisis?

64 HAWKEYE Dark Pools are attracting suspicious glances, but are they all that bad? Our new City editor fi nds out...

49

▼ FEATURES34 BRAND AND DELIVERGeorgina Wilson-Powell on how global brands such as Aviva (that’s Norwich Union, in old money) and Santander (remember the Abbey habit?) are spending millions bringing local brands into the empire – but at what cost to goodwill?

40 FOR GLOVE AND MONEYWe head down to the infamous Repton Boys’ Club in Bethnal Green, but not to train for a few rounds in the ring. Oh no. We’re here to see the beautiful people parading the latest fashions – and when we say beautiful, believe us, we’re not joking.

66 WE’LL DRINK TO THATChase away the January blues with some of the fi nest drinks and accessories to be had.

▼ ENDNOTES96 LOWER LIFE

▼ CHEQUELIST74 PORSCHE PANAMERA80 TRAVEL: BERLIN82 TRAVEL: HOTEL GURU85 REVIEW: MODERN PANTRY86 REVIEW: MISSOURI ANGEL89 WINE: 2008 RHONES90 PROPERTY: LONDON

▼ UPFRONT12 UP & COMING14 SPEND & SAVE16 NOTICE BOARD20 CITY TALK25 PRIVATE EYE27 THE INSIDER29 ACCESSORIES30 HEALTH MANAGEMENT

squaremileclub.com8 JANUARY

56-57 BURLINGTON ARCADE PICCADILLY LONDON W1J 0QN TEL 020 7499 6814 - 9 HATTON GARDEN LONDON EC1N 8AH TEL 020 7831 3333

B R I D G E C O L L E C T I O N

D ES IGNE D A ND HA NDMA DE IN HOUS EIN P LA T INUM A ND 18CT GOLD

www.h i r sh l ondon . com

famous for engagement rings

24707_BridgeCol_SqMile:24707_BridgeCol_SqMile 13/1/10 13:56 Page 1

SM 220x276 Layout.indd 1 14/01/2010 09:49:15

squaremile-feb/march010.indd 1 11/01/10 11:30:55SM 220x276 Layout.indd 1 14/01/2010 09:40:37

BECOME A POSTMAN P12

BEST OF BRITISH 2009 P16

ALEX’S EXIT STRATEGY P20

SEVENTIES STYLE P27

P27 HARRY’S GAME: With 55 parts, a distinctive movement (above) and six portholes through which to read the time, Harry Winston’s Opus 3 amazes and delights in equal measure, says QP’s James Gurney

OPUS DEI

UPFRONT

Up&

Comin

gEmail [email protected] more Square Mile, sign up at squaremileclub.com

win a bottle of JoHnnie walKeR blue labelSend us your thoughts and opinions. They can be on anything to do with the City or our magazine. The winning letter, as chosen by our editor, will win a bottle of Johnnie Walker Blue Label worth £125.

Competition teRms and ConditionsNo employees of Square Up Media or employees of the competition provider are eligible for entry. Entrants consent to receiving relevant mailings or information from Square Up Media. If you do not want to receive further information then type ‘No Mailings’ as part of the email subject header. Square Up Media will randomly choose winners from the entrants and will not enter discussion on this after the draw has taken place. The winner(s) will be notified on 29 January 2010.

CalendaR giRlsThe City was shrouded in Lamborghini tyre smoke last month at the world premiere of the 2010 Pirelli calendar.

A Murciélago LP 670-4 SuperVeloce and two Gallardos chauffeured some of the best known celebrities from music and show business to the event, including serial socialite Lady Victoria Hervey, and irritating crooner James Blunt.

Recently, the partnership between Lamborghini and Pirelli has also been documented on film. Go to YouTube to see a yellow Gallardo (clad in Pirelli PZero tyres, natch) driven on the streets of LA by actress Uma Thurman. It’s a tough call to decide which is prettier.

If your vote is for the Lambo, then test drives can be arranged. Call Lamborghini Sevenoaks on 01732 467 827.

tHe vip tReatment‘Selected’ is a new initiative brought to you from the directors of square mile. Selected keeps you informed of what’s going on, where and when in the world of private members’ clubs.

The service is complimentary to square mile readers and provides an unbiased recommendation of the capital’s coolest parties as well as offering subscribers unparalleled access to the capital’s finest events.

Recent guests at Selected’s chosen events include Jay-Z, Beyoncé, Noel Gallagher and Chelsey Davy to name but a few of the usual suspects.

To sign up for complimentary subscription please email ‘Subscription’ in the subject to [email protected] As well as the enewsletter, check out mynext7nights.com

100 Things to do After the City#19 beCome a postmanWhen they’re not on strike, postmen and women play a vital role in our lives. Just think about it for a moment: without our local postie, how would we know if we were overdrawn, seriously ill or pregnant?

The earliest known postman was Pheidippides (or Philip). Philip carried the news of a Greek victory in the Battle of Marathon in 490BC, his message being of such urgency that he ran all the way to Athens. When he arrived, he forgot the news and died of embarrassment. These days, Philip could simply pop into his local Post Office and enquire about registered post or one of the many courier services now available.

In his play, Death of a Postman, Arthur Miller depicts perfectly life on the road – I mean, pavement – for the average postie; a life of endless battles against illegible hand-writing, wild dogs, long hills and the condition known as ‘postman’s pant’. Some spend their days waiting to be upgraded to parcels, while others run private clinics for DHL to boost income.

Postmen’s feet adapt to the unique pounding-and-mileage combination the postal foot undergoes. Over the years, postmen’s feet become flatter and flatter to the point where, unsocked, they resemble ping-pong bats, hence the saying, ‘postmen’s feet never die, they just fade away’. Once the feet become membrane-thin, the postman is fighting a losing battle and should call it a day.

It is a popular misconception that the postman always rings twice. Most ring once and run off, a form of ‘knock-down ginger’ that comes with calling card: “I rang but you were on the loo”.

By the year 2025 all post will either be sent electronically (‘email’) or beamed directly into our heads (‘headmail’) via infrared technology, thus rendering the postman surplus to requirements. After years of pounding the streets it is hoped that many will take on more sedentary roles – armchair critic perhaps, or backseat driver – roles in which bleeding-though-the-sock is kept to a minimum. ■

upfront

12 January squaremileclub.com

●●

pHoto londonThis stunning image (above) of a tourist on top of the Millennium Bridge by Dan Law is one of over 170 entries in Landscape Photographer of the Year: Collection 03 (AA Publishing £25) – a coffee table book fi lled with breathtaking photos from around Britain.

A free exhibition of winning and commended entries will be held in the Lyttelton Foyer at the National Theatre from5 December to 24 January.

The 2009 Awards were held in association with Natural England and the English National Park Authorities.take-a-view.co.uk

open wideThe open Championship celebrates its 150th anniversary next year. To mark this historic occasion, The open offi cial Hospitality team are ensuring the championship is also remembered as a celebration of Scottish food, hospitality and produce. With specially designed fi ne dining and corporate hospitality packages,

both in the offi cial village and at the old Course Hotel (the offi cial hotel for the players) this is the perfect way to be close to the action and rub shoulders with some of the world's best golfers.

With various options to enjoy, be sure to mark this historic occasion by sampling the very best in corporate hospitality with Sodexo Prestige.

To fi nd out more about the packages available at The open Golf 2010 log on toopengolfoffi cialhospitality.com

pReCious metalThis Christmas is all about bespoke. It’s been the magic word for the luxury industry of late, and now more than ever, it's all about personalised style.

Chambers & Beau makes quality jewellery that can be personalised with hand-stamped names, dates, words or messages. The fl attened sterling silver has a certain shabby chic – very Shoreditch (despite the fact it's made in Devon). chambersandbeau.com

there is simply no higher priority tha

n to ensure we fi eld

the very best

people. o

ur obligation is to ensure we p

ay appropriately. Jo

hn

VA

RLEY, C

Eo, BA

RCLA

YS

FLASh SUShI IS the fi rst authentic Nyotaimori dining experience available in London. Nyotaimori, roughly translated as ‘turning a naked woman into a dinner plate’, is apparently a traditional Japanese art. (I really must make an effort to go to Japan more often.)

For centuries this rare and shadowy practice has been the sole preserve of Japan’s elite social circles, but in the spirit of gastro-egalitarianism will be brought to the paying pervs of London too.

Flash Sushi will offer a limited number of places at £250pp with only one dinner sitting per month until March 2010.To fi nd out more go to fl ash-sushi.com. ■

Crunch Bunch#10 in ouR RegulaR seRies foR people wHo’ve missed tHe news, HeRe's... flasH susHi

PHo

ToG

RA

PH: D

an Law, fl ickr.co

m/p

hoto

s/dan-law

com

Up & Coming

January 13squaremileclub.com

CA

RTo

oN

: Mo

dern To

ss, mo

dernto

ss.com

Ronnie sCott’s membeRsHipAs Ronnie Scott’s celebrates its 50th anniversary, this iconic venue is delighted to announce details of an amazing new membership package.

An unmissable chance to become part of the Ronnie Scott’s family, the package includes a whole array of unique benefits and complimentary offers, including two free tickets to a standard price show per year; 20 per cent off all tickets (including guests); priority booking; and much more. Membership is priced at just £165 per person. ronniescotts.co.uk

pop up paRtyYou know how you religiously watch X-Factor every weekend and how it’s destroyed your social life (or is that just me?)... Well, now you can bring back some Jedward action into your own front room with the Lucky Voice Pop-Up Party.

As part of the package, you’ll have a pro bartender making you drinks on demand, a Lucky Voice karaoke system, and AV equipment including a plasma screen and a Bose sound system with two wireless mics. All this enables you to sing together with your closest friends (presuming you still have some) without the potential for public ridicule. From £1,500. 020 7907 7743; luckyvoice.com/popup

Table Talk

I thInk MoSt will agree, Christmas lunch is a nightmare. You’re forced to sit around a table with relatives you could have sworn were meant to be dead by now. Your Aunt Polly’s bread sauce is surpassed by most cement mixers. And if you have to hear the King’s College choir sing Hark! The Herald Angels Sing one more time it may be worth ripping off one of your testicles – so at the least you can sing along in the same octave.

Given that you have to sit through all of this, then at least pull up a pew at one

of the best dining room tables known to man: the Cimitree Repeat After Me.

The legs – hand-cut laminations of English ash internals and American black walnut externals – have been rotated as they run the length of the table, creating a distinct vertebrae affect. Each of these legs is made up from three separate laminations to give strength and rigidity: ideal if Gran has one too many sherries and decides that the spare room is too far to walk for her nap. ■ – Mark Hedley01730 826 809; cimitree.co.uk

■ bonus busteRCimitRee Repeat afteR me dining Room table, £26,000

upfront SpEnD & SAVE


SM 220x276 Layout.indd 1 14/01/2010 10:36:03

+ bEst oF british 2009

the inaugural square mile Best of British Collection 2009 was held last month at the City’s gibson hall. the event brought together over 30 of Britain’s fi nest luxury brands all under one roof for one night only.

guests were treated to drinks from Bulldog gin and Bombardier beer, while Johnnie Walker Blue Label and the Dalmore hosted their own whisky tastings. and Fortnum & Mason provided some tasty treats.

the hall echoed with British classics played by the trio of Young guns musicians, keeping the evening and the guests in good spirits. Many thanks toall involved and those who attended.


upfront

pho

tog

ra

phs b

y Chris o

’Do

novan and

Mark h

edley

+ Exhibitor dEtails

alto; clubalto.com and so to Bed; andsotobed.co.ukasprey; asprey.com Backes & strauss; backesandstrauss.comBespoke-England; bespoke-england.co.ukBoodles; boodles.com Bovey Castle; boveycastle.com Bremont; bremont.comCzech & speake; czechandspeake.comthe Dalmore; thedalmore.com Dent; dentlondon.comDrakes; drakes-london.comEdward green; edwardgreen.comEllicott; ellicott.ch Fortnum & Mason; fortnumandmason.co.ukthe Fox Club; foxclublondon.com the goring; thegoring.comgeoffrey parker; geoffreyparker.comgraham; graham-london.comhavana house; havanahouse.co.uk huntsman; h-huntsman.com IWI Watches; iwiwatches.com Johnnie Walker; thewhiskyexchange.com Jura; jurawatches.co.uk Keith prowse; keithprowse.co.ukLinks of London; linksoflondon.com Lucie Campbell; luciecampbell.comMaurice sedwell; savilerowtailor.com rapport; rapportlondon.comrichard ogden; richardogden.comsodexo prestige; uk.sodexo.com speake-Marin; speake-marin.comturnball & asser; turnbullandasser.com Vertu; vertu.comthe Watch gallery; thewatchgallery.co.uk

+ with thanks to...

Venue: gibson hall; gibsonhall.com

Gin: Bulldog; bulldoggin.comBeer: Bombardier; bombardier.com

Musicians: Young guns; younggunsuk.comPhotographer: Chris o’Donovan; chrisodonovan.comChairs: Melanie porter; melanieporter.co.ukProduction: Eclipse presentations; eclipse-presentations.co.ukEvent manager: Jane Lees; [email protected] house: Clare Brind, Mark Edwards and Christian Morrow; squareupmedia.com


Notice board

+ harry winston EvEnt

harry Winston – the luxury jeweller and watchmaker – teamed up with square mile to host a unique event at Eight Club in Bank on 28 october. there were three rooms for our readers to enjoy: a diamond room; a watch room and a jewellery room – where harry Winston’s latest collections were on display with experts on hand to answer any questions.

If you’re interested in attending any of our upcoming Watch Club events email [email protected] with ‘Watch’ in the header.

pho

tog

ra

phs (h

arry Winsto

n) Dam

ien gab

et; (proud

Cab

aret) Lou C

oo

per

+ proud cabarEt party

square mile hosted a VIp launch party for the City’s newest establishment, proud Cabaret. Modelled on a 1920s supper club, proud Cabaret brings together fine dining and entertainment in surroundings that recall the glamour of the jazz age. proudcabaret.com


Notice boardupfront

For a list of PIAGET stockists, please telephone 0207 343 7200 or e-mail [email protected]

www.piaget.com

TITANIUM CASE, SAPPHIRE CASE BACK, AUTO-MATIC FLYBACK CHRONOGRAPH, 880P PIAGET MANUFACTURE MOVEMENT, DUAL TIME ZONE, DOUBLE BARREL, BALANCE WITH SCREWS, 100 METERS WATER RESISTANT, RUBBER STRAP.

MARCUS068_05_Pi_Polo_SquareMile_1 1 15/6/09 11:37:32SM 220x276 Layout.indd 1 14/01/2010 13:22:38


upfront

MD: When I interviewed you this time last year, Alex, global capitalism was facing meltdown and your employer Megabank was teetering on the brink of collapse. Since then your bank has been rescued by the government and the economic crisis seems to have abated somewhat. AM: That’s true. Obviously, being effectively nationalised is an unusual situation for a bank. The private and public sector make strange bedfellows. But to be fair, both were to blame for the crisis, which was caused by the recklessness and greed of bankers, coupled with supervisory and regulatory failure by the authorities. So it’s up to us to resolve the situation and I think we’re now working effectively together and identifying areas of common ground and shared methodology.

And what would those be?Well, an instinctive short-termism for a start. The politicians are looking to next spring’s election and we bankers are just trying to get one more bonus under our belts before things really go belly up. So we’ve just been papering over the cracks in the meantime. But you’ve personally had a record year in terms of fees. To what do you owe your success?Well, you reap what you sow. What I think has seen us all right is the sheer calibre of the corporate clients we built up in the boom years. Basically, they were all total dogs and they’re now in massive financial trouble. So we’re earning big fees from advising them on debt-restructuring and crisis management. And obviously not making any mention of how it was us that advised them (for substantial fees, naturally) to take on all that debt in the first place.

So what kind of bonus are you looking at this year? Any guilt?No, I certainly don’t want my bonus paying in gilts. It’s bad enough having to have it deferred and paid in bank stock without any of that dodgy Treasury debt..

No. I meant guilt with a ‘u’.Oh, I see. No, not really.

But what about the appropriateness or otherwise of bankers being paid bonuses at a time where the rest of the country is still in recession?Well, don’t forget the City’s been very profitable in the second half of this year. But obviously we do still have some sensitivity to public opinion. And so for this reason we will certainly not be paying our staff huge bonuses.

No?Absolutely not. We’re now calling them ‘retention payments’ instead.

Whatever you call them, ordinary people are angry about these payouts happening so soon after the banks were rescued with public money.They’re missing the point. What they forget is that City salaries are an important source of taxation revenue and that this new boom has implications for the public exchequer. When the financial sector is making money there is a beneficial trickle-down effect to

other sections of the economy. Such as tax lawyers. I mean, for example, this time last year none of us bankers were expecting to ever see a decent bonus again. But now that we are, we’re going to need to employ someone to help us avoid the new 50 per cent tax bracket.

So, no guilt there then. Would a regulatory policy of ‘naming and shaming’, of publishing lists of individuals in a bank who earned more than a million pounds a year have any effect?Only if one’s name didn’t appear on the list. Now that’d be really shaming. Do you feel the City has taken sufficient steps to remove the correlation between earning large bonuses and risk-taking?Yes, absolutely. Earlier this year regulators were putting pressure on the banks not to pay out big bonuses. And Megabank responded very responsibly: by doubling everyone’s basic salaries. Which means we now automatically earn large amounts of money. So there’s no need for us to take any risks at all.

And of course we mustn’t forget the Government’s constructive contribution to this issue.

In introducing tighter financial regulation and supervision?No, in introducing looser monetary policy. Nowadays we bankers can borrow money for next to nothing and invest it in bonds that yield six per cent. So the bank makes a profit and we all get nice fat bonuses. And once again there’s no risk at all involved. So everyone’s happy.

Look, don’t forget that markets thrive on sentiment and confidence. For us in the City having had our salaries doubled has really helped boost our morale. I mean, we’ll now get twice as much ▶

alex’s annus mirabilis

●● The bank makes a profit. We all get fat bonuses. No risk at all…

MarTiN DeesoN, editor of Square Mile magazine, caught up with Alex Masterley, investment banker at Megabank, in his local wine bar in the City


city talk

▶ in our redundancy settlements once the inevitable happens and the black bin-liners get passed out.

What do you think of proposals, supposedly favoured by Mervyn King, to break up investment banks into their so-called ‘casino banking’ and ‘utility banking’ arms?It seems a practical solution to me. After all, the casino-banking divisions have been responsible for making all the money recently, so let’s hang on to that bit. And who wouldn’t want to get shot of all those potentially dodgy mortgages that the utility bank has secretly got stashed away somewhere off its balance sheet? Bring it on, I say.

Can you explain Credit Default Swaps to us please (as some of our readers need ‘reminding’)?Excuse me a second. Memo to graduate trainee: please look up credit default swaps on Wikipedia and email me asap. Sorry, about that, Martin. I’ll get back to you on that one.

So how do you feel about the demonising of bankers by the media this year? Has it had any effect on your collective behaviour?Oh, most certainly. We’ve been consistently portrayed in the press as ruthless, opportunistic, totally lacking in moral values and motivated by our own financial gain at the expense of others. This has had the result of enabling us to pay ourselves even higher bonuses. After all, we have to protect ourselves from being poached by all our ruthless, unprincipled, opportunistic competitors.

And how about the attitude of people at dinner parties? Is ‘banker’ a dirty word now?Admitting to being a banker at social occasions these days tends to attract unwelcome, aggressive, persistent attentions from other guests – they’re usually trying to get you to swing them an internship for their kid.

On a personal level, this year your wife, Penny, actually took a job for the

first time in her life. She now works as a counsellor. Did you approve?Obviously, having a working wife is a little shaming, but Penny specialises in redundancy counselling. So it’s a hedge against next year going completely tits up in the markets. But she’s actually highly qualified to advise people who have just lost their jobs. Well, after 20 years as a corporate wife she has a wealth of experience of how to fill leisure time.

And I hear your son Christopher has recently gone to college, to study art. How did you feel about that?I must say I was disappointed. I’d always hoped that my boy would follow me into the City. To encourage him I always used to invite him to come and visit me in my workplace. I hoped that making him wait in the bank’s reception for hours on end looking at all that dreadful corporate art would put him off the stuff for ever. Clearly, I didn’t keep him down there for long enough.

How will you be spending Christmas?In meetings with headhunters. The proposed new government legislation to curb excessive City pay that is due to come into force early next year only applies to new employment contracts, so this is my last chance to land myself a decent package at a different bank before I retire.

What’s your exit strategy if the City does go belly-up? Isn’t now the perfect time to hang up your cufflinks – and, I don’t know, open a beach bar in Grand Bahama, or something?I think a bar in Verbier or Zermatt might be more practical at present with all the hedge funds planning to relocate to Switzerland. Oh, excuse me a moment..

I see that something important has just come through on your BlackBerry. Some big deal you’re closing? Er, no. It’s the email revealing the venue for Megabank’s Christmas party which is happening tonight. It’s had to be shrouded in strictest secrecy this year, naturally. A bit like one of those illegal raves back in the 1990s where you had to drive round the M25 until someone phoned you with the location. Well, obviously, we wouldn’t want taxpayers to find out that we’re spending their bailout cash on vintage champagne.

Well, Alex, I’d better let you go. One last question: after a year which has seen bankers lose much public respect what can the financial community do to redress its image?You know, I think what we need right now is the traditional services provided by the PR industry.

To put a positive spin on the City?Er, no. To pick up the tab for these drinks. Failing that, I’m afraid this bill is yours. ■

‘The Best of Alex 2009’ by

Charles Peattie and Russell

Taylor is out now. (£9.99,

Prion) alexcartoon.com

Read Alex every day in the

‘Daily Telegraph’ and every

month in square mile

●● obviously, having a working wife is a little shaming

2009


city talkupfront

Luxury travel,tailor made by the experts

VOTED THE WORLD’S LEADING TOUR OPER ATOR FOR 11 YEARS IN A ROW • WWW.KUONI.CO.UK

The

KuoniSaleSave up to30%

BOOK IN-STORE WITH OUR PERSONAL TRAVEL EXPERTS AT84 Bishopsgate, London, EC2N 4AU0207 374 6601

36233 KUO] Square Mile ad•.indd 1 22/12/09 15:33:32ads_resize.indd 10 18/1/10 17:50:25

ww

w.r

icha

rdja

mes

.co.

uk

+4

4 (

0)2

07

43

4 0

60

5

Bes

poke

+4

4 (

0)2

07

28

7 9

64

5

richardjames_aw09_squaremile.indd 1 10/8/09 12:21:21ADs.indd 21 10/8/09 17:45:39

PRIVATE PARTSIn 2009, PRIVATE EYE’S super satiristswere let loose on the City. Buckle up...

‘The Private Eye Annual 2009’ – edited

by Ian Hislop – is available from all good

bookshops (Private Eye Productions, £9.99)

Subscription to ‘Private Eye’ costs £28 for

one year (26 issues).

JANUARY 25squaremileclub.com

PRIVATE EYEUPFRONT

Trader Vic’s – an exotic experienceDiscover paradise in the heart of London. Taste the delights of French Polynesian cuisine, or try an exotic cocktail, while enjoying live Latin music every night.

Call 020 7208 4113 or visit tradervicslondon.com

London Hilton on Park Lane, 22 Park Lane, London W1K 1BE

TraderVic's_SquareMile_Jan2010.indd 1 06/01/2010 10:20:51

TraderVics_SquareMile_Jan2010_2.pdf 18/1/10 17:35:10

ads_resize.indd 7 18/1/10 17:36:17

1

43

2

5

IT WAS ARGUABLY The Face magazine that fi rst poured style scorn on the 1970s as “the decade that taste forgot”. However, while this was indeed the era that gave us polyester and Love Thy Neighbour, at the recent book launch party for 70s Style and Design (Thames and Hudson) by Dominic Lutyens and Kirsty Hislop it was certainly wall-to-wall style, as many of the era’s movers and shakers came out in force to celebrate the decade that managed at once to straddle the escapism of Ossie Clark and the anger of punk.

From pop to postmodernism, Edwardian romanticism to a return to nature, the 1970s had it all. Fast forward 30 years and the infl uences of this most pivotal of decades can still be seen to set trends. Last month, Sir Terence Conran was awarded the Elle Decoration British Design

Award for lifetime achievement while Celia Birtwell (celiabirtwell.com), textile designer extraordinaire and muse of the late Ossie Clark, is also enjoying a major renaissance, with a surge of collaborations on the high street with retailers such as Topshop (dresses), Boots (beauty and accessories) and even Millets (a patterned-print tent).

A new generation has also seen the light. Award-winning designer Ella Doran (elladoran.co.uk) creates photographic furniture with Formica, and in situ wall panels that immediately resonate with a sense of the retro. From leaves to architectural trompe l’oeil effects, Doran creates innovative visual effects that nod to this lost decade but with new clarity and vigour. From wallpapers to china, clothes to music – the return to the lost decade is certain to fl are the imagination. ■

DE SEDE DS–51 CHAIR £3,5451 Available in ‘Relax’ or ‘Active’ versions. Unfortunately the ‘Frankie Says Relax’ one didn’t come out until the 1980s. chaplins.co.uk

KUNDALINI HARA £1,0182 Based on one of the ‘chakras’ – seven spinning vortexes of energy, apparently. All we know is that the past is bright... leighharmer.co.uk

DE SEDE DS-600 £2,0903 You can zip elements of this modular sofa together to fi ll even the largest penthouse. chaplins.co.uk

ROSENDAHL BANKERS CLOCK £6794 This modernist clock was designed by Arne Jacobsen in 1971 for the National Bank in Copenhagen. Time is money. panik-design.com

PROGETTO COMPIUTI £15,1555 Shiro Kuramata designed this in 1970. It was going to have straight sides, but who knows what they were on back then? chaplins.co.uk

Retro has never looked funkier – don’t sweat it, just get down and in the groove, says MARK HEDLEY

THAT ’70s SHOW

CREATIVE FLAREANTONIA METHUEN REVISITS THE 1970s


UPFRONT INSIDER

Pure Cashmere Pinstripe Suits

zegna.com

Hedge Magazine_230x285.indd 1 20-07-2009 12:48:40zegna.indd 1 11/8/09 12:45:33

1

43

2

5

11

AT QP MAGAZINE’S annual watch exhibition, SalonQP, David Gouten (CEO of Harry Winston’s watch subsidiary) was proudly wearing one of the most long-awaited watches ever made. Back in 2003, Harry Winston’s third Opus series watch was unveiled to a vastly impressed audience. Vianney Halter’s design had been inspired by the cylindrical Curta calculating machines of the late 1940s (it may seem hard to believe now, but there was an era before Texas Instruments’ fi rst electronic calculators).

Apart from its striking looks, the Harry Winston Opus 3 (pictured left) transformed the levels of ambition and the scope of design that watchmakers worked within. That it has taken the intervening six years to make the watch actually work is by the by.

Unfortunately, the watch carries a price tag well into six fi gures – which sadly puts it out of reach of all but the deepest pockets held among you good City folk.

The Opus 3’s importance, however, is in the inspiration it gave watchmakers working closer to sea-level, a perfect example being Giuliano Mazzuoli’s Contagiri. Designed after the rev counter of the Alfa Romeos that he raced in the 1970s, the Contagiri has proved almost as diffi cult to realise as the Opus 3. The fi nal version is undoubtedly worth the heartache though, as the Contagiri’s unmistakably Italian design both works and comes at a relatively realistic price, at around £14k. ■James Gurney is editor of QP magazine.To read more visit qpmagazine.comQP SELECTS

MAGNUM OPUS

PICKETT LEATHER PERUDO SET £1761 If bluffi ng is your forte, then you might want to try Perudo. Pickett makes one of the classiest sets around. pickett.co.uk

LINLEY CLASSIC GAMES TABLE 2 £24,370 Cards, chess and backgammon all in one walnut table. For £24k, you better hope it wins for you too. davidlinley.com

JOHNNIE WALKER BLUE LABEL 3 BACKGAMMON SET £3,500 Backgammon from William & Son and King George V from JW Blue Label. A glass act. williamandson.com

MUFTI TRIBECA LEATHER & SUEDE 4 BACKGAMMON SET £75 For travelling gamblers. You gotta roll with it. mufti.co.uk

PICKETT CALFSKIN & LIZARD SKIN 5 SCRABBLE SET £2,350 This beauty could make a perfect gift for your scrabble partner – they’ll be lost for words. pickett.co.uk

For those who like to cut a dash as a chancer in the game of life. JACK DONNE rolls the dice

BOARD MEETING

44 553 55

SalonQP, David Goutenwatch subsidiary) was proudly wearing one of the most long-awaited watches ever made. Back in 2003, Harry Winston’s third Opus series watch was unveiled to a vastly impressed audience. Vianney Halter’s design had been inspired by the cylindrical Curta calculating machines of the late 1940s (it may seem hard to believe now, but there was an era before Texas Instruments’ fi rst electronic calculators).

Apart from its striking looks, the Harry Winston Opus 3 (pictured left) transformed the levels of ambition and the scope of design that watchmakers worked within. That it has taken the intervening six years to make the watch MAGNUM OPUS

2


ACCESSORIESUPFRONT

1

43

2

5

GIVENCHY PRO-ENERGISING 1 MASSIVE MOISTURISER £27 This non-oily gel provides a matt fi nish – perfect for combatting sweaty slapheads. harrods.com

BAXTER OF CALIFORNIA OIL FREE 2 MOISTURIZER £18 Plant-based hydration technology absorbs quickly. Ideal for rapid hangover reparation. carterandbond.com

MOLTON BROWN ULTRA LIGHT BAI 3 JI HYDRATOR £25 A real all-rounder: moisturises, repairs, cools, and improves your skin. Worth a skinful. carterandbond.com

HIS HEAVEN MOISTURISER £34 4 Contains clarysage – an aphrodisiac – so it should uplift your love life as well as your facial features. heavenskincare.com

MANCEUTICALS MAXIMUM 5 HYDRATION FACE LOTION £34Irons out wrinkles. carterandbond.com

It's a tough time of year for your face and skin. Fight back with the cream of the crop of lotions

CITY SLICKERS

TO BE BLUNT, it’s this time of year when you’re looking your worst. The summer tan is a distant memory restricted to your Facebook photo albums, only to be replaced with the rough realities of winter: chapped lips, crusty nose, a sweaty forehead, and enough grime to grease a Tube track. Your face is effectively malnourished.

Fortunately, Glow Urban Spa has the ideal treatment for feeding it up. The Dr Alkaitis Skin Organic Food Facial adopts a unique menu of only natural and edible products – made up of enough ingredients to make a store of Whole Foods jealous. The £95 treatment gives you 75 minutes of unadulterated cleansing, smoothing and toning bliss. First, an exfoliating enzyme-packed mask of organic oatmeal is applied, which works anti-infl ammatory magic to reduce

breakouts and redness, while the therapist performs a soothing arm and hand lymphatic massage. Next, a soothing application of nourishing treatment oils, drawing out impurities and preparing the skin for extraction.

After any nasty bits have been removed, a wonderfully hypnotic rejuvenation face massage works oils into the skin with fi rm lifting movements. Then another mask – this time a breakfast feast of strawberries, blueberries, bilberries, natural yogurt and miluka honey. You'll then receive a blissful neck and shoulder massage, followed by a fi nal treatment serum and eye cream.

By the time you leave, you should be glowing – and looking good enough to eat. ■Glow Urban Spa, 8 Motcomb Street, SW1;020 7752 0652; glowurbanspa.co.uk

EMMA TAYLOR HEADS OFF TO GLOW URBAN SPA FOR SOME TASTY TREATS

ABOUT FACE

11

4433 55

30 JANUARY squaremileclub.com

HEALTH MANAGEMENTUPFRONT

Porsche Design Store London119 New Bond Street | London W1S 1EP | +44 [ 0 ]20 74952938

porsche design

Engineered luxury by Porsche Design: a blend of conceivedfunctionality and aesthetics. Combining durable premiummaterials with perfect quality. The result: timeless classicsthat accentuate the personality. Anytime. Anywhere.

www.porsche-design.com

PD_Multiproduct_SquareMile UK_220x276.indd 1 22.10.2009 9:12:15 UhrSM 220x276 Layout 1 23/10/2009 11:09

c o n t e m p o r a r y t a i l o r i n g – m a d e t o m e a s u r e & r e a d y t o w e a r

t e r e n c e t r o u tL O N D O N

F L A G S H I P S T O R E N O W O P E N • 5 G R O S V E N O R S T R E E T • M A Y F A I R • L O N D O N • W 1 K 4 D J

T E L E P H O N E : 0 2 0 7 4 9 5 3 1 7 7 • W W W . T E R E N C E T R O U T . C O M

TT Hedge fund ad 11/9/09 2:24 pm Page 60

ads.indd 20 14/9/09 14:27:06

c o n t e m p o r a r y t a i l o r i n g – m a d e t o m e a s u r e & r e a d y t o w e a r

t e r e n c e t r o u tL O N D O N

F L A G S H I P S T O R E N O W O P E N • 5 G R O S V E N O R S T R E E T • M A Y F A I R • L O N D O N • W 1 K 4 D J

T E L E P H O N E : 0 2 0 7 4 9 5 3 1 7 7 • W W W . T E R E N C E T R O U T . C O M

TT Hedge fund ad 11/9/09 2:24 pm Page 60

ads.indd 20 14/9/09 14:27:06Untitled-2 1 28/10/09 16:14:50

BO

XE

R: C

K C

alvin Klein tro

users (£144); Turnbull &

Asser d

ressing g

ow

n (from

£795) and R

oyal B

ox clo

th with w

hite leather braces (£75); Jo

hn Lewis G

old

’s Gym

Heritag

e bo

xing

glo

ves (£35); AG

EN

T: Ted B

aker trilby hat (£35) and

tie (£40); Jaeger PO

W co

at (£350); Turnbull &

Asser tro

users (£1,100 for suit) The W

hite Shirt Co

mp

any classic collar shirt (£135)

P40 BOXING CLEVER: This month’s fashion shoot took place at the legendary Repton Boys’ Club, alma mater of such luminaries as Ray Winstone and, er, Reggie and Ronnie Kray, Bethnal Green’s fi nest. Seconds out…

WHAT GOES A ROUND

REBRANDING THE BANKS P34

JOBS: APPLE’S CORE P56

VERTU FLIPS OUT P63

SPIRIT OF CHRISTMAS P66FEATURES

the new brand heaviesGlobal monoliths such as Santander and Aviva are bringing local brands under the banner. But at what cost to goodwill? By GeorGina Wilson-PoWell

“is it a bus company?”“Do they make feminine hygiene

health products?”These were the responses given to a

recent Guardian newspaper journalist who asked the great British public who Aviva are. This is despite a six-month advertising campaign costing £20m featuring a whole raft of famous actors, that was supposed to promote the insurance giant as a household name in the UK. Fair to say, then, not the most successful rebrand of recent times.

As with most things this year, people are questioning the cost, the commercial (and common) sense of a change and, annoyingly for the financial institutions, rebranding has become a flashpoint for media-flogging. But rebrands continue apace. Next year, Abbey, Alliance & Lester and Bradford & Bingley become Santander; there are tough times ahead and rebranding can be a risky move, so how do you make it a success?

2009 has seen the financial market become more concentrated in general, not just through global insurers ensuring all their ducks are wearing the same colour suit in a row, but within the UK, major banks have ‘rescued’ slightly smaller and much worse-off banks, like some giant game of Pacman, except the recession ghosts keep on coming and it’s not 50p of the taxpayer’s money every time someone wants a go.

“Banks have to work bloody hard to win back the hearts and minds of their customers and do everything they can to restore some faith,” says Neil Svenson, CEO of Rufus Leonard, the agency which has acted as brand guardians for Lloyds TSB since the two banks merged 12 years ago. “Banks have to move from a product sell into trying to build relationships with their customers and offering them a service. You are looking for someone to manage your money, they know more

than you do and should be looking after your interests. These are hard promises to keep at the moment but that’s where they have to go. Is that rebranding, or repositioning or reevaluating?”

There is some agreement that financial services shouldn’t rebrand just because the economy is in recession. It is not the quick fix of a sharp U-turn, but a long term reassessment, a new route plotted and planned out and once the course is set, it is unstoppable.

“It’s only the right time to undertake a rebrand when it’s the right time to do it. Not because the economy has gone tits up but because the organisation has culturally changed,” continues Svenson.

David Airey agrees. Airey’s a graphic designer responsible for the book Logo Design Love: A Guide to Creating Iconic Brand Identities, and he runs a popular design blog of the same name. “Banks shouldn’t be changing logos or identities because confidence is low. Knee-jerk brand spending is not a good remedy. If you take the visual identity of a bank in isolation and it gives the impression of a solid, trustworthy brand then top-level management should focus on more important business decisions.”

“There are other factors besides design and communications,” says Stephen Cheliotis, chairman of the Superbrands Council. His organisation

compiles an annual list of the top 500 ‘superbrands’ that the public then rates and ranks. It uses existing market data, expert and media opinion, as well as commissioning fresh research each year.

“Other factors include how compelling its offering is, its ability to deliver promises, its profile and heritage and there are outside factors depending on the context. For instance the trust and security of a financial brand is more vital today than it was.”

Heritage is a drum that has been banged pretty loudly lately. Abbey will lose a name 130 years old, while Bradford & Bingley has 60 years’ worth of trading, but heritage is only worth something when the brand performs well. And with Santander’s case it is a case of swapping British heritage for Spanish – the banking group has been trading since 1857.

But rebrands, as the result of acquisitions or mergers, are not new. Today’s financial institutions facing a potential backlash, should remember that change might not be appreciated but is soon forgotten. Remember Midland Bank? It was only ten years ago that perceived ‘outsider’ brand HSBC acquired it, modernised it and shoved it out into the wide world with a shiny new name and logo, and it has remained a suitable success story.

Think back to The Woolwich (with 160 years’ trading and 3.8 million customers), which was bought by Barclays in 2000. It saw nearly 200 branches close in what was a slight PR disaster for the larger bank nine years ago, but now, how often does this keep you awake at night? Do you even remember The Woolwich, despite Barclays promising “Woolwich will be to Barclays what iPod is to Apple”?

High-street bank Lloyds TSB will be looking at these precedents (and its own merger of blue and green in 1998) with hope. The above move by Barclays cost ▶

●● it’s only the right time to undertake a rebrand when it’s the right time to do it

Features



rebranding

30under30_23.indd 1 18/1/10 09:43:19

▶ over 1,000 jobs, but in these uncertain times, redundancies are even less appreciated. The HBOS buyout has cost the brand 13,000 jobs and a raft of bad press it had so far avoided. High street banks have made 42,000 staff redundant in the past 12 months, 33,000 of those have between Lloyds TSB and RBS. That means there is a lot more to moan over rebranding now, than whether we like the new ad campaign or not. Rebranding costs jobs as well as money.

Lloyds TSB, previously of course, had been a successful rebranding story, much like HSBC. The famous Lloyds black horse was replaced with a world of quirky, informal animation and concept advertising, ‘For the journey,’ taglines and a soundtrack that became a No1 selling single. “What more could you want from an ad campaign?” says Svenson.

“A whole family of advertising has followed Lloyds TSB’s lead. The communication since the merger has been that the bank is there for life and all your ups and downs, something they’ve achieved very successfully.”

However, the bank’s acquisition of HBOS has been different. It’s happened far more quickly and not much trace of the HBOS identity remains. Svenson admits, “Mergers can take a generation of people to fully take effect. It was only four or fi ve years ago that Lloyds TSB started to think and act like one company.”

Alongside this warning, banks, like any other brand, meddle with their existing communications at their peril, says Cheliotis. Even the perception of a bad rebrand can spell disaster.

“A strong brand shifts the demand curve, increasing either the volume of the value of products and services sold, while also reducing risk, for example, through encouraging brand loyalty. If the brand is damaged in any way, then that has the potential to serious affect its business reputation and its bottom line.

“I’d advocate rebranding only when it’s vital, such as when a brand has lost all its equity or when using a monolithic global brand outweighs perceptual and fi nancial benefi ts of local brands.”

An example of this is Santander, which has 90 million customers globally; most of

whom will never have heard of Bradford & Bingley. If it is looking to cut overheads, bringing all its regional brands under one umbrella makes good business sense.

“Santander is clearly a brand on the move and it’s created some very high awareness and goodwill in a short space of time. It will, however, need to continue to invest considerable sums in its marketing and sure that it delivers great products and services to its customer base if it is to establish long-term credentials in the UK,” says Cheliotis. ▶

●●i’d advocate rebranding only when it’s vital, such as when a brand has lost all its equity

Features


rebranding

▶ Part of its success can be down to a clear marketing strategy and a long term game plan. Santander has invested in British sport by sponsoring Formula 1 circuits and Lewis Hamilton (a British sports person who actually wins occasionally), making itself, at least in the UK, synonymous with something visible.

It’s only next year, six years after buying Abbey and two after it bought A&L and B&B that everything will come under the Santander banner, with 1,300 Santander branches to be open by the end of 2010, serving 25 million customers. It has been advertising Abbey as ‘part of the Santander Group’ for the past couple of years, and the Abbey logo was recreated in Santander’s house style in 2005.

“Bradford & Bingley or Alliance & Leicester are not particularly well-regarded brands, though I’m sure they had close connection with some customers,” says Cheliotis. “And while Abbey is a brand that has improved in our ranking considerably over the last year, it remains well behind, say, Barclays and HSBC. These brands had some heritage and goodwill but I’m sure they won’t be too sorely missed in the medium term.”

Aviva, the world’s fifth largest insurer, was Aviva in 20 of the 27 of the countries it operates in (60 per cent of its business is non-UK). But the rebrand has not been an unmitigated success. Part of this might be down to timing, costs (said to be up to £80m) and there are reports of the insurer cutting the value of about-to-mature policies, which isn’t going to endear it to anyone, let alone its customers.

One of the problems here is that Norwich Union became Aviva overnight (1 June 2009) and no amount of airtime featuring Bruce Willis can gloss over the fact that the brand and logo are meaningless to the average consumer.

Aviva means ‘spring’ in Hebrew – obviously of great relevance to someone who has had insured their Volvo with Norwich Union since 1994.

“In an economic downturn, a well-regarded, well known and trusted name can be extremely important. A strong brand is a guarantee of a certain level of service or product quality. Often in a downturn there is a flight to quality and people feel more secure turning to those organisations that are well respected and that have previously lived up to their promises,” explains Cheliotis.

“It has also been proven that those organisations that continue to invest in their brand and marketing suffer less in an economic downturn and recover faster than those that do not invest in their brand, or who have a weaker brand.”

Aviva can be accused of misjudging the current market, not necessarily through undertaking a name change but by not backing it up (so far) with anything that feels confident enough to replace the Norwich Union identity. Santander has stuck to its original 150-year-old-name, with regional acquisitions being required to fall into line as policy, while Aviva has imposed a rather grey and dull, ‘thought up in a focus group’ style of moniker, almost as an afterthought.

It makes global marketing a damn sight easier. The trouble is, the public and the media are going to be slow to love them. ■

how to...Six StepS to SucceSSfully branding a bank from SuperbrandS’ Stephen cheliotiS

Deliver on your promises•

Be honest, open and fair•

Offer exceptional customer service •and treat your customers as people not numbers

Stand out without being wacky•

Communicate with the customers •in a way they understand

Continue to innovate in terms of •product, service and delivery

●● these brands had some goodwill but they won’t be too sorely missed…

Features


rebranding

WAIT.

GIRARD-PERREGAUX 1966 Full calendarIndicators of the date, the day of the week, the month

and the moon phases. Girard-Perregaux automatic mechanical movement. Pink gold case. Sapphire back.

Centre Pompidou, Paris. Architects Renzo Piano and Richard Rogers.

10810871_GP Architecture_Coop Beau Gems.indd 1 18/09/2009 17:31SM 220x276 Layout 1 28/09/2009 12:32

thE Main EVEnt

Give us a ring… and we'll fi ll it with glam models and City suits

PhotographyJOHN DAVIS

JOHNDAVISPHOTO.COM

Photographer’s AssistantDAVE FOSTER

Make-upAMELIA PRUEN

HairPIERO

DWMANAGEMENT.CO.UK

LocationTHE REPTON BOXING CLUB

REPTONBOXINGCLUB.COM

FeaturingSTEVE POUND

ACTOR AT MODELS 1

MARIA MAZIKOVABOOKINGS

FAYE, ZOLLY & CHARLIEM&P

CH

AR

LIE: Jaeg

er go

ld w

oo

l silk jacket (£400) and tro

users (£250); Burb

erry white sm

ock shirt (£225); C

anali black fad

e bo

ots (£300); The W

hite Shirt Co

mp

any silk bo

w tie (£59); Po

rsche Desig

n spo

rts bag

(£200); John Lew

is G

old

's Gym

Heritag

e leather bo

xing g

loves (£35) and

chest expand

er (£20); MA

RIA

: Ag

ent Provo

cateur leop

ard Io

na bo

dy (£175); Falke tig

hts (£16); Geo

rgina G

oo

dm

an sling b

ack heels (£421)tFEaTurES

40 January

ZOLLY: Ted

Baker w

hite shirt (£80); Turnbull &

Asser w

oven silk b

races (£80) and N

ickel arm b

ands (£16); D

KN

Y relaxed-fit tro

users (from

£180); The White Shirt C

om

pany silk b

ow

tie (£59); John Lew

is bo

xing g

loves (£35)

January 41

Fashion it’s a knockout

MA

RIA

: Jaeger Shearling

bo

lero (£499); A

gent Pro

vocateur silk M

elod

y basq

ue (£295), Melo

dy b

rief (£50) and sto

ckings (£25); A

rianna Cad

wallad

er black feather fascinato

r (£250); Geo

rgina G

oo

dm

an Nad

ine leather sling

back heel (£462); M

ikimo

to A

koya cultured

-pearl lo

ng strand

necklace (£9,130) and A

koya m

ulti-strand b

racelet (£3,870)FEaTurES

42 January

ZOLLY (left): Paul Sm

ith trousers (£630 fo

r suit); Turnbull &

Asser b

races (£75), Cro

ckett & Jo

nes Cliffo

rd sho

e in antique calf (£385); Jo

hn Lewis b

oxing

glo

ves (£35); CH

AR

LIE (rig

ht): Richard

James tailo

red tro

users (£895 for

suit); Turnbull &

Asser b

races (£75); Cro

ckett & Jo

nes Weym

outh sho

e in black antiq

ue calf (£385); John Lew

is bo

xing g

loves (£35)

January 43


MA

RIA

(left): PPQ d

ress (£1,336); Geo

rgina G

oo

dm

an shoes (£421); D

avid M

orris necklace (£710,000) and

earrings (£67,000); STE

VE

: Ted B

aker hat (£35); Turnbull &

Asser co

at (£795) and tro

users (£1,100 for suit); Tho

mas

Pink shirt (£85); The White Shirt C

om

pany tie (£100); E

dw

ard G

reen shoe (£560); Pickett b

riefcase (£1,295) and g

loves (£99); FA

YE (rig

ht): Kei K

agam

i dress (£625); V

ivienne Westw

oo

d b

rocad

e sling b

acks (£395); Arianna

Cad

wallad

er fascinator (£120); D

avid M

orris necklace (£390,000) and

earrings (£195,000)

FEaTurES

44 January

MA

RIA

: David

Mo

rris 18ct Ro

se cut white d

iamo

nd fan necklace (£710,000) Platinum

white d

iamo

nd earring

s (£67,000)

January 45

▲ M

AR

IA: A

gent Pro

vocateur leo

pard

bo

dy (£175); Jaeg

er bo

lero (£499); A

rianna Cad

wallad

er fascinator (£250); Falke tig

hts (£16); Geo

rgina G

oo

dm

an shoes (£421); D

avid M

orris b

racelet (£150,000) and earring

s (£67,000); C

HA

RLIE

: Burb

erry trousers (£495); Turnb

ull & A

sser braces (£75); C

rocket &

Jones sho

e (£385); John Lew

is bo

xing g

loves (£35); STE

VE

: Burb

erry coat (£1495); Turnb

ull & A

sser suit (£1,100); Paul Smith shirt (£120); Sim

on

Carter tie (£49); Po

rsche Desig

n sunglasses P’8478B

(£225); Ed

ward

Green sho

e (£560); JJ Fox cig

ar; ZOLLY: R

ichard Jam

es trousers (£895 p

art of suit); Turnb

ull & A

sser braces (£75); C

alvin Klein C

ollectio

n shoes (£320); Jo

hn Lew

is bo

xing g

loves (£35); FA

YE: Pring

le dress; V

ivienne Westw

oo

d jacket (£300); A

rianna Cad

wallad

er hat (£140); Falke tights (£11); K

ei Kag

ami sho

es (£325); David

Mo

rris earrings (£195,000)

▼ FA

YE: Jaeg

er blo

use (£250); DK

NY skirt (£296); A

rianna Cad

wallad

er hat (£380); Falke tights (£16); V

ivienne Westw

oo

d sho

es (£450); David

Mo

rris earrings (£67,000); D

&G

Tim

e watch (£275); ZO

LLY Vivienne W

estwo

od

jacket w

ith waistco

at (£395); Brio

ni trousers; The W

hite Shirt Co

mp

any shirt (£135); Simo

n Carter cuffl inks (£39); C

anali belt (£140); C

alvin Klein C

ollectio

n shoes (£320)

FEaTurES

46 January

January 47


HEAVEN’S EXACT LOC AT ION IS UNKNOWN.BUT EVIDENCE POINTS TO 38,000 FEET.

Paradise found. A fully flat bed, in-seat power, and a personal touch-screen TV with over

300 hours of on-demand entertainment—everything designed to make flying as comfortable

as possible. On your next flight to Canada, relax in the privacy of your Executive First Suite.

Executive First® Suites are available on overseas fl ights between Canada and our international destinations on all Air Canada-operated aircraft, except certain Boeing 767’s. ®Executive First is a registered trademark of Air Canada.

134_14_2AI_Hedge Magazine.indd 1 27/03/09 1:15 PMads_resize.indd 2 18/1/10 16:55:30

ILLUSTR

ATIO

NS in this sectio

n by Jam

el Akib

CiTy angela KnighT P53

Kuoni’s PeTer roThWell P56

Why The marKeT misleads P59

The haWKeye column P64

JOBS FOr aLL

P50 CORE BUSINESS: Around the time Bill Gates and pals were creating Microsoft in Albuquerque, in San Fran a visionary called Steve Jobs with a fl air for fonts and calligraphy was creating Apple

When Time engages in its annual ritual of announcing the selection for its person of the year, I am inevitably reminded of an occasion, almost 30 years ago, when a similar bulletin caught me in its crosshairs. At the dawn of 1982, while I was on leave from my position as a correspondent in Time’s San Francisco bureau, the magazine’s editors decided to nominate the computer its ‘person’ of the year. Buried inside this issue was a profile, to which I had contributed, of Apple’s co-founder Steve Jobs. It was there that my troubles began.

It was hard to say who was more incensed by Time’s story, Jobs or me. Steve rightly took umbrage over his portrayal and what he saw as a grotesque betrayal of confidences, while I was equally distraught by the way in which material I had arduously gathered for a book about Apple was siphoned, filtered, and poisoned with a gossipy benzene by an editor in New York whose regular task was to chronicle the wayward world of rock’n’roll music.

Steve made no secret of his anger and he left a torrent of messages on the answering machine I kept in my converted earthquake cottage at the foot of San Francisco’s Potrero Hill. He, understandably, banished me from Apple and forbade anyone in his orbit ever to talk to me.

The experience made me decide that I would never again work anywhere that I could not exert a large amount of control over my own destiny or where I would be paid by the word. I finished my leave; published my book, The Little Kingdom: The Private Story of Apple Computer, which I felt, unlike the unfortunate magazine article, presented a balanced portrait of the young Steve Jobs; honoured my obligation to Time and, at the first opportunity, fled to become, at the outset, half of the entire workforce of a speciality publishing business that many years later – long after I had entered the venture capital field – was acquired by Dow Jones.

In the three decades since, I have sometimes wondered about the quirks of fate that have connected me with Steve. Had I not been in my twenties,

Time would probably never have posted me to San Francisco, where I happened to be of the same generation that was starting computer, software and biotech companies. Had I not met Steve, I would not have encountered Don Valentine, the founder of Sequoia Capital, and an original investor in Apple. Had I not met Don, I would never have found myself interviewing to become the lowest man on Sequoia Capital’s short totem pole. Had I not written about Apple, where I became obsessed with the then-unchronicled tale of its very early days, I would never have thought hard about the traits and accidents that shape a company. Had I not started learning the ropes of the venture trade in the mid-1980s, I would never have had the good

luck that has flowed my way. And, had I not met Steve and Don, I would never have understood why it’s best not to think like everyone else.

These days, thanks to the rough-and-tumble experiences of almost 25 years in the venture capital business, I have developed what I hope is a more refined perspective on the extraordinary accomplishments of Steve’s business life – one that richly deserves to be ranked among the greatest of any American, living or dead.

Steve is the CEO of Apple but, much more importantly (even though his business card does not say this), he is a founder of the company. As the history of Apple shows, there is no greater distance known to man than the single footfall that separates a CEO from a founder. CEOs are, for the most part, products of educational and institutional breeding. Founders or, at least, the very best of them, are unstoppable, irrepressible forces of nature.

Of the many founders I’ve encountered, Steve is the most captivating. Steve, more than any one other person, has turned modern electronics into objects of desire. Steve has always possessed the soul of the questioning poet – someone a little removed from the rest of us who, from an early age, beat his own path. Had he been born at a different time, it’s easy to see how he would have hopped freight cars and followed his star. (It is not a coincidence that he and Apple helped underwrite Martin Scorcese’s No Direction Home, the absorbing biopic of Bob Dylan.)

Steve was adopted and raised by well-meaning parents who never had much money. He was attracted by Reed College, a school that exerts an unusual appeal for bright and thoughtful teenagers, and which, in the 1970s, was tailor-made for any child who wished he had been at Woodstock.

It was there that a calligraphy class sharpened his sense of the aesthetic – that influence is still apparent in all Apple products and advertising.

About the time I entered the venture business, Apple’s board fired Steve in

●● steve made no secret of his anger and left me a torrent of messages

michael moriTz has been following Steve Jobs’s career for 30 years with a mixture of envy, despair and admiration

The Man at Apple’s Very Core

City


favour of a man from the East who was a creature of convention, Characteristically, Steve sold all but one share of his holdings in the company and, at Sequoia Capital, we shook our heads as we watched him shape the company that he came to call NeXT.

He raised money from investors (including Ross Perot) at a massive valuation and I remember visiting its headquarters, which bore all the hallmarks of a fi asco-in-waiting. There was a logo designed by Paul Rand and a fl oating staircase in the lobby, echoes of which are visible in the staircases that you can see today in many Apple stores.

NeXT took Steve out of his natural milieu. He was trying to sell computers to large companies – entities not swayed by products with visceral appeal. It also meant he was removed from the fray of the consumer business at a time when computer companies were beginning to demonstrate that, thanks to their edge with software and silicon, they had a natural advantage over consumer companies struggling to become computer companies. Steve persisted at NeXT when weaker beings would have thrown in the towel, but eventually when

the death rattle started to emanate from the company, it seemed he too would be consigned to occupy a footnote in history.

It’s hard now, 12 years later, to appreciate the dire straits that Apple was in after it bought NeXT in a desperate effort to revive itself. Silicon Valley cynics chuckled at the way Steve was able to sell NeXT for more than $400m even though it only had sold about 50,000 computers. Steve returned to Apple hardened by years of commercial adversity.

Many are familiar with the re-emergence of Apple. They may not beas familiar with the fact that it has few,if any parallels. When did a founder ever return to the company from which he

had been rudely rejected to engineer a turnaround as complete and spectacular as Apple’s? While turnarounds are diffi cult in any circumstances they are doubly diffi cult in a technology company. It is not too much of a stretch to say that Steve founded Apple not once but twice.And the second time he was alone.

To gain a better sense of Steve, I suggest going to YouTube and watching the commencement speech he gave at Stanford in 2005, which must rank as one of the more forthright and meaningful addresses ever given to a collection of young people. Among the sentiments he conveyed was the opportunity we all have to make our mark, do something special and, above all, follow our own path. He ended that talk with the admonition, borrowed from the fi nal edition of the Whole Earth Catalog, to “Stay hungry. Stay foolish.” This, I have discovered, also happens to be wonderful advice for anyone who wants to spend their life investing in young companies. ■

Return to the Little Kingdom: Steve Jobs,the Creation of Apple, and How It Changedthe World by MiChael MORitZ is out now(£8.99, Gerald Duckworth & Co Ltd)

●●silicon valley cynics chuckled at how steve sold neXT for more than $400m


sTeVe JOBs

For a brochure and more information call 020 8847 9449 or visit www.londonbasement.co.uk

"I did it for the investmentpotential, now I couldn'timagine life without it"

With every square foot of living space at a premium, underground construction isthe most viable alternative to relocating.Now there is no need to move house tofind that longed for extra space, whatever period your property is and whether youhave an existing cellar or not, The LondonBasement Company can create it for you.

A new dimension right beneath your feet

SM 220x276 Layout 1 29/10/2009 09:34

When i Was economic secretary to the Treasury, the UK was facing very different financial conditions. It was the mid-1990s and the City was looking to the challenges it was facing from increased competition from our European neighbours. Now the main threat from that quarter has shifted to ever increasing regulatory demands, being considered without proper thought to their impact. And now our government is suggesting populist legislation that could seriously hamper the City and Britain’s competitiveness overseas.

So it was this month that I spent another weekend on another round of interviews responding to news about banks. In recent weeks the banking sector has been under a barrage of proposals – from the break-up of those banks where the public has a major say, to the G20 in St Andrews and the much-criticised proposals for a Tobin-style tax. And now, ahead of new legislation, thoughts turn to everything from controlling bankers’ pay to moves for ensuring the public is better educated about all things financial.

Welcome to my world… I certainly did not expect all of this when I took over at the British Bankers’ Association little more than two and a half years ago. In that time we have seen unparalleled turmoil in the world’s economic institutions and huge concerns at home.

The banking industry is acutely aware that we have a long road to travel in restoring confidence and trust. A major part of that will be the competent execution of day-to-day banking with customers at the heart of what we do.

And the City is up for wider reform, addressing head-on the issues that both led to the crisis and that cause the greatest public outcry.

We have also been tackling the issue of pay and bonuses. I am not denying public anger. I can well see why the headline figures must seem like the Wall Street “greed is good” mantra. But, like most headlines, there is more to it than meets the eye. Every industry has high earners and the financial services sector has its share. But, like football, or fashion, or the civil service, the percentage getting the top salaries is very small indeed.

We have always said that pay packages should reward long-term success and should not encourage undue risk-taking. We have already signed up to remuneration rules with the Financial Services Authority and support moves by the G20 to coordinate international agreements, necessary to keep talent in the UK. But recent speculation about the government’s plans, suggesting that rules

would apply worldwide would seriously disadvantage the UK economy.

British banking is a global business and many of our banks operate outside the UK. Moves to bind how our banks operate overseas could put the industry at a serious disadvantage and also discourage global banks from coming to the UK. This would be a major problem for jobs, the taxpayer and the wider economy as well as bad for business.

Banks have already been making moves to rebuild their balance sheets and to manage risk. They have also been in discussion with the government about how best to support the wider economy.

And there is the heart of the riddle. As the government requires banks to hold more capital to increase financial stability – and foreign banks have retrenched to their home markets – there is simply less money to lend and fewer banks to do the business. I am sure the basic maths are not lost on the politicians but, in an election year, they’re not likely to want to send out this message in Westminster.

We have always known new legislation about banking was likely but we should be wary of any actions that set the UK at a disadvantage, discourage international businesses from coming here and make it more difficult to attract, reward and retain high-quality staff.

Let’s be clear: the industry is not trying to man the barricades against the tide of change. But reform needs to be focused, it needs to be effective and it needs to be coordinated internationally if we are not to be disadvantaged by moving at a different pace from our competitors.

I am sufficiently long in the tooth to remember when the UK had other world-class industries – from shipbuilding to steelmaking. Now, every ship comes in to Tilbury or Liverpool bearing testimony to the fact we import more and send containers back empty.

I don’t want to see that for banking. And I don’t want it to happen because

we sleepwalk into tighter controls, increasing regulation and more legislation that doesn’t bind our competitors but leaves the UK mourning the demise of another world-beating business. ■

Angela Knight is CEO of the BBA

In her new monthly column the BBA’s angela KnighT urges the government not to hamstring the banks

Batting for Britain

●● like football or fashion, the percentage getting the top salaries is tiny

City


whiTe knighT

M a n a g e m e n t S o l u t i o n s

And we know you’re smart.

But when it comes to choosing smarter salary solutions maybe it’s time to consider an alternative.

That’s because Equip Management Solutions is an alternative umbrella company.

As a professional contractor you’ll want rewards that are balanced against risk, plus the highest returnspossible for all your hard work. Through Equip Management Solutions the remuneration packageoffered not only enables you to enjoy excellent financial rewards, but it also offers a completely hassle-free service that minimises the burdens that come with running your own show. And that leaves youmore free time to secure those lucrative contracts.

Would you like to retain up to 85% of your gross earnings, and more?

Contact Equip Management Solutions now.

Minimise Your Tax. Maximise Your Earnings.

Call: + 44 (0)1483 230426Email: [email protected]

www.equip-ms.com

Smart Contractors Choose Smarter Solutions

Equip FP advert3:Layout 1 19/05/2009 13:23 Page 1










www.equip-ms.com












www.equip-ms.com



ads_resize.indd 1 18/1/10 16:47:23

POsT-iT

s

Magic numbers

▲ The weight of the largest ever Christmas pudding, made Lancs, 1992

3.28 tonnes

▲ The price of the fi rst ever Christmas card (British, of course), sold at auction in 2001

£20k

▲ What it cost for the world’s most lavish Christmas tree (gold, diamond, in Japan, etc)

$1.6m

£45,000▲ The most expensive hamper ever sold, made by Vivat Bacchus in 2008

asUs-laMBORghini nOteBOOKParking a brand new Lamborghini on the drive as we approach the fi rst decent bonus season since the world turned upside down and all the money ran out might seem a little, shall we say, crass. It’s now possible, however, to have a guilt-free piece of the Sant’Agata marque, with the launch of the Asus-Lamborghini VX5 notebook. Available in ivory white or dark graphite, the VX5 takes its design cues from Lamborghini’s ultra-rare Reventon, and is fi nished with a leather-surrounded ceramic touchpad and a backlit keyboard. At £1,999it’s considerably cheaper than your average slice of Italian supercar exotica, and far less likely to to get keyed. asus.co.uk

CalVin KleinUsB sUnglassesIf you’re the kind of person who wears sunglasses indoors and gets a kick out of innovative data storage solutions, then Calvin Klein has got just the product for you. These stylish peepers have a detachable arm concealing a 4GB USB fl ash drive, so your most important fi les are always close at hand (or rather, face). Quite what you’re supposed to do with your data during these dark winter months though is anyone’s guess. Perhaps Mr Klein can be persuaded to make a USB scarf for the UK market. calvinklein.com

a BRidge OVeR tROUBled wateRThe solution to a cripplingly aggressive tax regime? Buy a bridge. Or more precisely, buy Swinford toll bridge in Oxfordshire, which, owing toa fabulously British law, attracts no income or capital tax.

Around four million vehicles pass over the bridge every year, each paying a toll of 5p for cars and up to 50p for lorries, though vociferous locals have recently been pushing for the toll to be scrapped. Annual gross income is estimated to be somewhere in the region of £195,000.

If you’re interested in getting your hands on the bridge, which comes complete with a cottage, over four acres of land, a 12-space car park and mooring for 12 boats, then sadly you’re too late. It sold at auction in December for just over £1m. To the lucky buyer: square mile salutes you!

The end is nighUnsure what to do if the fabled double-dip actually happens, and we’re plunged into a recession worse even than the last? Start stockpiling guns, medicine, food, water desalinators and transistor radios in preparation for the barter economy. Not square mile’s advice – we’d buy a disused missile silo and pack it with gold and Dom Perignon – but that of one of the Telegraph’s online posters responding to a report issued by SocGen to its clients, outlining a “worst-case debt scenario”.

“We are at the start of the end,” explained another poster called ‘Bad Bob… not real name’. “There is no human solution for the world predicament we fi nd ourselves in. No amount of number crunching can fi x this, or even time. But not to worry the Beast has a short term solution. But God has a plan... yes. Brace for impact... soon.” Better stockpile those guns – it’s going to be every man for himself. Read more at tinyurl.com/ybs4qhl

POsT-iTs


City

PeTer roThWell became CEO of the Kuoni Group on 1 January 2009. He began his career in the tourist industry in 1982 when he joined the trainee programme at Thomson Holidays, working in the product, marketing and advertising departments. Ascending the ranks, he was appointed COO and board director of TUI AG in 2006 and was responsible for all touristic activities with direct responsibility for the UK and Northern Europe. As deputy chief executive of TUI Travel PLC he played a leading role in bringing about the merger of TUI and First Choice in 2007. As CEO of Kuoni, he is currently overseeing the mass restructuring of the Kuoni group to create a more customer-focused organisation. The first structural overhaul in decades, it aims to streamline the Kuoni Group under a more centralised aegis, with attendant economies of scale.

on The PerfecT TriPKuoni is one of the UK’s most successful specialist tour operators and one of the world’s leading travel organisations. It was founded in Switzerland by Alfred Kuoni in 1906, so it has over 100 years of experience – the son of our founder is still on the board. He’s about 90.

People use Kuoni because they don’t want to waste their three weeks of holiday. If you’re going back to the same hotel in the Caribbean year after year, there’s no big issue, but if you want to do something a little different, you need a company you can trust to give you some guidance. A holiday will generally be well researched by our customers, but there’s nothing like discussing it. It’s not that people are afraid, but they don’t want to make bad decisions or waste their time. Is four nights in Hong Kong too long? Should I do three? If I do three, where else should I go? There’s a lot of advice required from a tour operator.

Having said that, people are a lot more knowledgeable than they used to be, especially at our end of the business. Our customers are very experienced. They go on holiday three or four times a year and many own property overseas. They’ll go to St Barts in the winter, skiing with their children and so on.

We own a number of autonomous, specialist travel companies like Voyages Jules Verne, Journeys of Distinction and Kirker that organise anything from luxury escorted tours to award-winning villa holidays to tailor-made short breaks, and we have private travel experts who know our product range inside out. You can ask them for advice, decide on an itinerary and they’ll put it together for you from the world of Kuoni. It’s like private banking in the sense that it’s a relationship. The expert may not know the entire world him or herself, but they can always find somebody within our network who does.

on lasT-minuTe holidaysThe recession has affected us in the sense that we’re upmarket, we’re long-haul and we’re completely discretionary, as nobody has to travel. That said, 90 per cent of our travelling public are still doing almost exactly what they were doing before. The changes that people have made are not so much to do with quality but with duration. Once you’re used to five-star, it’s quite difficult to go down to three, but a ten-day holiday can become nine, without causing too much upset.

People are booking later. We used to take a huge amount of our bookings a year in advance, 18 months in the case of our older clients, but that has reduced considerably. I think people are looking around a lot more to see what the various offers are and who is providing them.

There is a lot more what we call ‘just-in-time production’, people saying: “I want to go on holiday in the next four to six weeks, what have you got for me?” A lot of the deals come on the basis of distressed inventory from the hoteliers. Upmarket hotels have suffered this year and empty hotels are terrible places, so they like to get people in, even if the rates are well discounted.

At least then they have a chance to earn in the bars, the restaurants, the sports club… There are some really good deals around. Our job is to go and source those deals. To the hotelier we say, look, we’re the guys with all the customers and to the customers we say, we’re the guys with all the deals.

lou cooPer meets Peter Rothwell – Mr Kuoni – who says that bespoke and imaginative holidays will always sell

Meet the Man who Oversees Travel

On his Own hOlidaysI prefer activity holidays in the summer with my wife and five-year old boy. We tend to take weekends in Cornwall, where we have a house. We own a light aircraft and I have a commercial pilot’s licence – this is very convenient for all short flights and for weekend trips; we have flown as far as to Dubrovnik, Sardinia and Salzburg in the past.

Croatia is my favourite warm destination, where we charter a yacht to sail around the beautiful Dalmatian islands. Away from the main coast, the islands are unspoiled; it’s like going back in time. Kids play football at night under the island’s single street lamp – there is normally one shop or post office and maybe a cash machine. There are very nice places, where you can eat dinner under the stars.

In winter, we ski and have taken apartments in St Anton or Zermatt over several seasons. Some of the best skiing is when the weather is bad in January in the city – the days are short but the powder is deep. St Anton is challenging, bumpy and wild. Zermatt is high, scenic and a gourmet’s delight.

Between the seasons, our recent favourite is horse riding in Africa, on safari, where you can see free animals. The climate and the light is beautiful.

City


on conTemPorary TravelThese days, it’s less about demographics and more about psychographics – groups of like-minded people getting together to plan a trip around a shared interest. We run a Harley Davidson tour through Cape Town that is extremely popular with groups, and tango and samba holidays in Buenos Aires and Rio de Janeiro are a big hit. Whether you want to learn how to be a gaucho in Argentina or pick bananas on a plantation in Bolivia, it’s about creating an authentic experience. We’ve tried to pull out from each country, really colourful, interesting things to do, so that you can get under the skin and work with the locals. I think that gives people a deeper level of engagement. The feeling we’re trying to get is destination insider. So much of travelling is about the people you meet. Often on your travels you forge a lasting relationship that can really define a holiday.

CSR-oriented holidays – the kind where you volunteer or work with scientists in the field, or help a local village community, where you can roll up your sleeves and get involved – are definitely on the increase. Trips like these have received a lot of media attention and I think the recession has been a tipping point in people’s mentalities. They are far more aware and want to give as well as take. Travel is a form of broadening the mind and deepening the spirit. It’s about inner growth.

Last year we organised a tour of Chernobyl in the Ukraine, so that visitors could witness firsthand the after-effects of a nuclear disaster and see the long-term consequences it has had for the population as well as the environment. We like to keep pushing the boundaries. We can’t be seen to be middle or mass market. We have to be much more edgy in that respect these days.

on The sTaycaTionI frequently travel to road shows in London, Paris, Frankfurt and so on, and talk to our clientele. A lot of them have not taken a holiday since Lehman Brothers collapsed – over a year ago. There’s a lot of fear there. If I take a holiday, what does it say about my commitment to my job?

Will my desk be there when I get back? But it’s creating this pent-up demand because people love to travel. There is an inherent desire to travel. In Europe, that’s become what people do. You don’t expect to spend 52 weeks of the year at home. There is nothing that would ever persuade you that this is the right way to spend 52 weeks.

Times are tough and people are having to look after their budgets more, but I think a holiday, from what I’m picking up, is a very necessary purchase. People need

downtime. We’re not machines. We can’t work at full tilt, the whole year round. A holiday is about time, which has become a real luxury these days.

There has been a stay at home mentality during this particular year and people have tried alternatives to overseas travel. They have been down to Cornwall or to The Cotswolds and it’s either been good weather or bad weather. The infrastructure in the UK is not prepared to take that kind of weight; we don’t have the transport capabilities or the hotels and there have been huge traffic jams. People have made a change for a short period, but I think the pattern will re-establish itself.

When people go away they want it to be relatively warm, relatively interesting, relatively foreign and that mentality will reassert itself quite quickly. And when it does come back, it could come back with quite a bang. The first market into recession is also the first out. ■

For more information go to kuoni.co.uk

●● People need downtime. We’re not machines that can work at full tilt all year

welCOMe TO My wOrld


welCOMe TO My wOrld

VPAR live golf scoring brings the energy, excitement and tactics of the professional game to club and corporate golf.

Call us on 020 7524 7804 or visit www.vpar-golf.com

Welcome to the future of golf.

SM 220x276 Layout 1 23/10/2009 12:58

Keynes said iT all – well, he said most of it. What’s more, he said it in a more elegant way than almost anyone before or since. In an oft-quoted passage in the General Theory, he wrote:

“... the ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back. I am sure that the power of vested interests is vastly exaggerated compared with the gradual encroachment of ideas.”

The dominant idea that underlaid the recent financial crisis, which I call the Great Implosion, is the notion that markets work and governments don’t. Markets are right because they respond to the pull of self-interest and individuals are a good judge of their self-interest. Governments, by contrast, operate in the murky world of political pressures, and whatever they touch turns out to be a dog’s breakfast.

This idealisation of the market has deep intellectual roots in the liberalism of the 19th century. The Austrian theorists of the early 20th century actually did not believe that the market is always right but rather that its mistakes – which were frequent – had to be accepted as part of its greater benefits, and the mistakes were far less damaging than anything that governments might get up to.

That strikes me as a much more plausible version of the ‘hands off’ world view (even though I don’t embrace it myself) that played such a big part in both theory and practice over the past 30 years. But the version that came to dominate was the Efficient Markets Hypothesis, or EMH for short. That view itself came in different strengths, but the five-star, full monty version held that there would never be a systematic difference between fundamental values and market prices. In other words, bubbles could not happen.

On the face of it, this flew in the face of financial history. Examples of bubbles are pretty common, from the South Sea Bubble of 1720 to ramps in Australian mining stocks in the 1960s. Supporters of EMH dismiss these examples in one of two ways: either they weren’t really bubbles or that was then; history has moved on. Bubbles may have been possible in the past but they aren’t now. Until recently, that is.

The trouble is that economic theory has always had difficulty in dealing with the influences of the group on the individual. Because once you allow that

idea in then the notion that welfare-maximising individuals will produce the optimum result starts to look shaky. And if selfish, maximising behaviour doesn’t produce the optimum result because individuals are subject to group influences, then the case for collective action appears much stronger.

The wonder is that economic theory has been able to continue for so long with the charade that people are narrowly self-interested individuals. It is quite clear that outside the world of economics individuals are heavily group-influenced. After all, that is surely what the whole fashion phenomenon is all about. There is no sensible answer to the question of whether short skirts or long skirts are better. But there is an answer as to which is in fashion.

Why should the world of finance be any different? It isn’t. People end up thinking the same way and thereby can drive assets to valuations above and beyond where the fundamentals would justify. Moreover, for a time such behaviour is self-fulfilling. As the bubble inflates, believers in the bubble make money; sceptics do not.

None of this is to say that markets always get things wrong. Nor that governments should try to prevent every little bubble that emerges. Mini-bubbles end up being fairly harmless. But that is not true of macro-bubbles such as the one which happened in equities, principally in the dotcom sector, in the late 1990s/early 2000s, or the property bubble of the last ten years. But such macro-bubbles cannot readily inflate without the acquiescence of the monetary authorities in allowing the finance to become available.

That is the sense in which when the markets get things badly wrong, as they did in the financing of the recent property bubble, the authorities have usually made a major mistake as well. The fundamental reason for this recent mistake was that they also came to believe that the markets always know best. They were wrong. ■

roger booTle on why those who idealise the market are not taking into account the herd tendency of individuals

don’t let the Market Mislead

ROgeR BOOtle is MD of Capital Economics, economic adviser to Deloitte and author of The Trouble with Markets (Nicholas Brealey, £18)

●● examples of bubbles are common, from the south sea bubble onwards

City


MArkeT fOrCes

china shocKed The market earlier this year when it revealed its gold reserves had doubled in fi ve years, not least because Beijing had been quietly buying under the counter from its own mines. It seemed to many that the Central Bank of China had been found out, that it had fi nally spoken the unspeakable and declared: ‘We’re not going to use the US dollar as our reserve currency anymore’. After all, who wouldn’t want out of a currency whose value has nose-dived 20 per cent in a year, especially when it is no less than the global reserve currency?

Even though they must continue to buy from the US Treasury, they’re hedging their holdings by diverting their capital wholesale into physical assets – commodities – and most tellingly, into gold and industrial metals.

It makes a lot of sense when you consider the United States currently owes China close to a trillion dollars, so if it’s losing ten per cent per year by investing in the plummeting value of the dollar, it’s losing $100bn a year. By buying gold instead, if the US dollar slides ten per cent, gold prices will rise ten per cent, and the shrewd economic superpower gains handsomely, where before it would have lost… signifi cantly.

China is far from alone in shunning the greenback in this way. In November, the Indian government spectacularly bought 200 tonnes of gold, almost half of the total 403 tonnes earmarked for sale by the IMF, sparking a rush from speculators and adding $25 to the value of a troy ounce overnight.

Mauritius immediately purchased two tonnes of gold from the IMF and while some may see this as insignifi cant compared to the bulk buying of the nuclear powers bear in mind this move no less than doubled its long-time reserves. Sri Lanka and Russia promptly followed, and traders are now anxiously awaiting other central banks, particularly China or Brazil, and sovereign wealth funds from the oil-rich Middle East, to grab whatever gold they can lay their hands on.

The acquisitions clearly confi rm the fresh appetite for gold among central banks fearful of a long-term decline in

the value of the US dollar, but it’s not just large institutions that are losing sleep over it. Wealthy individuals are now following suit, adding fuel to this already raging fi re. And they don’t want to buy gold stocks or gold futures – they want physical gold in their hands, and they want it now.

In October, Harrods began selling gold bars and coins for the fi rst time. And the following month, savers desperate to take advantage of record bullion prices forced the Royal Mint to more than quadruple production of gold coins. The world’s biggest maker of pure gold coins, the Austrian Mint, reported annual sales of

1.9m ounces to October: that’s 23 per cent more than its sales for the whole of the previous year.

With forecasts that a new record price of $1,500 per ounce and higher is achievable in the fi rst quarter of next year, it’s unlikely that anyone who hasn’t already bought has missed the gilded boat on this glittering insurance policy of sorts. And it’s not just gold that is cleaning up among the fear, uncertainty and doubt of the dollar, either. Silver, platinum, palladium and copper have all reached fresh annual highs simultaneously with gold, and other commodities are hot on their heels...

Normally in November and December, the prices of agricultural commodities like grain and corn fall as the harvest comes in and the markets are fl ooded with a surplus of product. But this year we are seeing these prices rise to new highs as more institutions and individuals are moving failing cash into them, to get them out of volatile and plummeting currency values.

The effect this is having, psychologically, is to further fuel demand for commodities in the market as everyone rushes to get a piece of the action in this bull market. It’s risky stuff, of course, as runaway prices await their inevitable correction, but as any good trader knows: minimising your risk, while maximising your position will be sure topay dividends.

Here at Spyglass (spyglasstrading.co.uk), we forensically analyse price behaviour and plan our forthcoming week’s winning trades every Sunday night in our online open Planning Session at 1900 GMT. Please come in and contribute – or if you want to see how it works, just sit back and watch our predictions play out.

Whether gold continues to soar and we continue to go short on the dollar, or the greenback recovers and the insatiable current hunger for commodities proves to be short-lived, one thing’s for sure: when the price goes up, it’s an indication of more demand – pure price behaviour – and it’s contagious. ■

To fi nd out more about MiKe Baghdady’s trading school go to spyglasstrading.co.uk

0.365

Investors dump the dollar and the rush for risky commodities isonly just beginning, says miKe baghdady

Chinais going for gold

City


COMMOdiTies

SM 220x276 Layout.indd 1 15/01/2010 19:27:33

much has changed in the past two years. We have seen enormous turmoil within the fi nancial services sector, and the wealth-management industry has certainly not been immune. High net worth individuals and wealthy families have faced considerable diffi culties, particularly over the course of the last 12 months, owing to a combination of the collapse of custodian banks, a series of hedge fund blow-ups and the collapse of packaged and structured products.

The speed and severity of the crisis has caught many by surprise and it is still not yet clear just how permanent the damage will be. But it is fair to say that the events of the past year have fundamentally altered the wealth-management industry and the perspective of wealthy individuals and families.

changing PersPecTivesMany wealthy families have become disillusioned with the services that they have received from their wealth-management providers as a result of the signifi cant losses that they have incurred. Many private banks, tied to their own products and managers, have struggled to preserve clients’ wealth, and there have been signifi cant losses in the overall value of clients’ assets.

For many, this has raised the issue of trust – clients are questioning why they have lost so much and whether this could have been avoided. In addition, wealthy families and their advisers are aware that, despite the uncertain long-term outlook and past turmoil, there are considerable investment opportunities open to them in the current climate that have the potential to demonstrate signifi cant returns and recoup past losses.

The question, then, for high net worth individuals and wealthy families is quite a simple one: do they believe that their current wealth-management providers can offer the independent expertise and know-how necessary to protect their existing investments, while also capitalising on the opportunities that are available in the short- to medium-term?

To resolve this dilemma, wealthy families are increasingly looking for

true advisers rather than wholesalers of products. Many have suffered from being tied into the products and to the managers of private banks, incurring signifi cant losses in the value of their assets. This has left wealthy families to review their options, particularly those who received questionable standards of service at a time when they needed advice and reassurance over their investment portfolios.

Multi-family offi ces have proved a popular alternative for high net worth individuals, attracted by the high levels of personalised service and the true independence on offer. The sophisticated

research used in constructing client portfolios has also proved to be a real incentive for wealthy families who are keen not only to avoid the mistakes of the past but to capitalise on the investment opportunities available in the future.

invesTing in TurbulenT TimesSlowly but surely, wealthy investors are beginning to regain confi dence and are thinking about the possibilities for the future. While the market is more complex than it is has been for some time, there are opportunities to secure signifi cant returns if investors are prepared to takea brave medium-term stance.

Some opportunities have yet to materialise owing to the changing fi nancial climate. Others have already appeared – there is real interest in investment in distressed credit and secondary private equity. Investors who are prepared to take a bold attitude and invest in illiquid funds with high returns will potentially be richly rewarded.

However, investors will only be able to access these opportunities if they have confi dence in those responsible for managing their investments. Similarly, the rewards wealthy investors get from such investments will be a result of the lessons that they have learned. One of the clear lessons from the past 18 months is that personal balance sheets need to be intelligently diversifi ed to ensure protection of assets. Many high net worth individuals have adopted a policy of ‘quantifi able risk’, limiting exposure to only a proportion of their overall portfolio.

ProsPecTs for The fuTureThe downturn has forced investors to scrutinise the service they receive and the products used by their wealth management providers, exposing many weaknesses and fl aws that had previous remained undetected or ignored. It can only be hoped that this raised level of awareness in the search for tailored, independent investment services will continue in the long-term. ■

guy PaTerson says the crisis means wealthy families will be more rigorous in scrutinising their portfolio managers

national wealth service

gUy PateRsOn is CEO of Unigestion’s Family Investment Offi ce. Unigestion manages £6bn globally – £1bn is on behalf of wealthy families

City


fAMily weAlTh

Cartoon from: 101 Uses for a Useless Banker by aleX steUaRt williaMs, published by JR Books in hardback at £9.99

silver serviceIf you’ve ever found yourself stuck in a foreign city clutching a dog-eared copy of the Lonely Planet and wondering which restaurant is least likely to give you botulism, then here’s some welcome news. Vertu’s latest bonus-busting handset, the Constellation Ayxta, comes with a brand spanking new and rather handy service that enables you to hit the ground running wherever you happen to be in the world.

City Brief is a digest of essential information for the traveller in a hurry, including restaurant recommendations, shopping guides and tips on cultural etiquette, just in case you’re the sort who shakes hands when you’re supposed to bow or sticks up two fi ngers when one’s de rigueur.Along with City Brief, the Ayxta comes with Vertu’s Concierge service – round-the-clock expert advice at the push of a button.

The phone itself, which retails from between €4,900 and €6,500, is Vertu’s fi rst fl ipper, and as you’d expect it comes dressed in all manner of materials usually reserved for machines designed either to fl y or to chew up the Tarmac at 200mph.

A sapphire crystal screen – handy if you keep your phone in the same pocket as your keys or work in bomb disposal – sits alongside swathes of leather, ceramics, a stainless steel frame and aerospace-grade aluminium.

Each phone is assembled by hand at the company’s headquarters in Hampshire, and even the ringtones are bespoke, so there’s little danger of getting caught up in an embarrassing rummage through jackets and briefcases when that crucial meeting’s interrupted by some hideous racket.

Just as well really, so you can escape the boardroom , log onto City Brief and locate some fi ne dining no matter where you happen to be. – Jon Hawkins

POsT-iT

s 2.0

City


POsT- iTs 2.0

noThing says ‘shady nefarious practice’ quite like a mysterious, gothic moniker. ‘Dark pools’ – off-exchange trading venues that don’t display quotations to the public – have attracted their fair share of bad press and regulatory attention of late, and it’s easy to imagine that at least some of the blame is attributable to the freewheeling techies who came up with the name.

In the late 1990s, when the term ‘dark pools’, or dark liquidity, fi rst started cropping up, it probably sounded edgy and dynamic, but now – with the public eyeing the banking system with, at best, suspicion – that name is an additional burden the industry doesn’t need.

In October the US Securities and Exchange Commission (SEC) proposed a set of measures intended to increase the transparency (or “shed some light”, as those wags at the SEC put it) on dark pools, while in November the Financial Services Authority (FSA) fi nished collecting data from dark pool operators and banks on European dark pool volumes. The FSA’s data will feed into an EU review of dark-pool trading set to be completed by the end of the year by the Committee of European Securities Regulators (CESR); this will inform a comprehensive rethink of the Markets in Financial Instruments Directive (MiFID), which effectively opened the European market up for dark pools to exploit on its introduction in 2007.

Attention from the press has focused on the regulators’ post-crisis shakedown, and the fact that many of the dark pools are operated by major players – two of the largest are Goldman Sachs’ Sigma X and Credit Suisse’s Crossfi nder – has added to the intrigue. And furthermore, the pools are expanding – share trading on European dark pools is approximately fi ve times the value it was at the start of the year (from €2.2bn in January to €9.5bn in October, according to Thomson Reuters), though this fi gure represents only a fraction of the total share value traded (the fi gure varies, though US consultancy Tabb Group estimates 4.2 per cent).

For all the recent excitement, though, dark liquidity is nothing new: non-displayed trading is as old as fl oor

trading itself. In a September 2009 report defending technological innovations, Goldman Sachs said dark pools were not a recent invention, but “a technological evolution of classic market structure”. The report also aimed to debunk a number of other myths: namely, that dark pools would create a two-tiered market; that they undermine price discovery; that they make up a large portion of trading activity;

and that they fragment the market as well.These myths, needless to say, appeared

to draw heavily on proposals by the SEC, a rejuvenated organisation galvanised into relentless action in the wake of the fi nancial crisis, and whose plans are “intended to prevent the development of a two-tiered market in access to pricing information, further promote displayed liquidity, and enhance transparency of trade information,” according to the regulator’s co-director of the division of trading and markets, James Brigagliano.

Where Goldman and many others agree with the SEC, however, is that something needs to be done about actionable indications of interest (IOIs) – similar to a buy or sell quote, but only conveyed to selected participants – and fl ash trading, in which stock exchanges allow larger clients to view orders before they’re published to the rest of the market.

The SEC’s proposals for dark pools include treating actionable IOIs in the same way as other exchange quotes, and therefore subject to the same rules and regulations for disclosure – a change also favoured by Goldman Sachs – while Flash orders will be banned in their entirety. The latter in particular could prove interesting. When Nasdaq and Bats withdrew their fl ash services in August, New Jersey-based Direct Edge was left as the only exchange with a fl ash order programme. Flash orders are said to represent a signifi cant proportion of Direct Edge’s profi tability.

The early part of 2010 promises to be an interesting time for dark liquidity in all its forms, with CESR set to complete its review of dark pools before the start of the year and the SEC planning to release a further review shortly afterwards, announcing in an ominously grave tone that “dark liquidity in all of its forms raises a variety of important policy issues that deserve serious consideration.”

But it’s hard not to feel that they, and the other regulators, have missed a trick. Perhaps what’s needed is not so much an overhaul as a rebranding. They can start by changing the name… ■

In his fi rst monthly column, Jon haWKins hacks through thickets to shine his torch on murky dark pools

losethe dark side of the force

JOn hawKins left JP Morgan to become square mile’s City Editor. Bless him.

City


hAwkeye

FUEL CONSUMPTION FIGURES FOR JAGUAR XF 3.0 LITRE V6 PETROL: MPG (L/100KM); URBAN 17.8 (15.8), EXTRA URBAN 37.8 (7.5), COMBINED 26.8 (10.5), CO2 EMISSIONS 249G/KM.*PRICE SHOWN BASED ON MANUFACTURER’S RECOMMENDED RETAIL PRICE. THE CAR SHOWN IS A JAGUAR XF 3.0L V6 PETROL LUXURY WITH OPTIONAL 18" VENUS ALLOYS WHEELS £750 AND METALLIC PAINT (£600).

XF 3.0 litre from £29,900* on-road, at Lancaster Group.Driving the Jaguar XF is no ordinary experience. The combination of exhilarating performance, supple ride

and lavish specifi cation makes each journey a memorable one. Fortunately, with on-road prices starting at

just £29,900* and a wide choice of fl exible Jaguar fi nance packages, you don’t have to settle for an ordinary car.

To discover the extraordinary XF, contact us today.

0118 965 8600

01732 456300

0208 302 3333

LANCASTER READINGBennet Road, Reading RG2 0QX www.lancaster.reading.jaguar.co.uk

LANCASTER SEVENOAKS114-115 London Road, Riverhead,Sevenoaks TN13 2DNwww.lancaster.sevenoaks.jaguar.co.uk

LANCASTER SIDCUPEdgington Way, Sidcup, Sidcup DA14 5BNwww.lancaster.reading.jaguar.co.uk

Exceptional luxury. Extraordinary value.

000655_276x220_XF_Excep Lux_Mag_Synd.indd 1 12/01/2010 17:13SM 220x276 Layout.indd 1 15/01/2010 12:21:35

SPIR

IT O

F ’10

Som

e p

eop

le in

sist

on

giv

ing

up

drin

kin

g fo

r Ja

nu

ary

, sa

ys

JON

HA

WK

INS.

He

is n

ot o

ne

of th

em


FEATURES

◀ VEUVE CLICQUOT VERTICAL LIMIT

This monolithic paean to superlative bubbly was produced for Veuve Clicquot by the Porsche Design Studio, and naturally comes stuffed with 12 exclusive bottles of Veuve from a variety of vintages. Rumour has it all 15 have been sold, but as a reader of square mile we’re sure you’re resourceful enough to sniff one out.shop.porsche.com/uk

▼ BELVEDERE INTENSE, £32

This is Belvedere’s fi rst ever 100 proof vodka. It’s full bodied, smooth, and possesses an intense aroma (notes of crème caramel, dark savoury spice and rich bitter chocolate). It’s ideal for a Christmas martini, having become a favourite at the Connaught hotel, where it was fi rst launched. The 50 per cent alcohol volume is sure to stave off winter chills. (Not strictly medical fact.) belvedere-vodka.co.uk

▶ JOHNNIE WALKER BLUE LABEL KING GEORGE V £420

If you think a standard bottle of Johnnie Walker Blue Label is special, then you’re going to love its latest special edition. The King George V Edition uses only whiskies from distilleries operating during the reign of King George V (1910-1935) and is handcrafted using the original techniques practiced during the era.harrods.com


LUXURY

FEATURESFEATURES

▶ BULLDOG GIN, £21

Bottled-up in Bulldog’s opaque black vessel are 12 exotic botanicals, including Chinese aphrodisiac, Dragon Eye (square mile has been assured that no fi re-breathing fi ctional reptiles were harmed in the making of this beverage). And the man behind the brand? Ex-JP Morgan banker Anshuman Vohra…drinkshop.com

◀ TANQUERAY NO 10, £30

Charles Tanqueray began his search for absolute perfection in 1830. Over 170 years later, Tanqueray No 10 is the embodiment of this quest. Carefully handcrafted in small batches by a Master Distiller, Tanqueray No 10 is one of the only gins to be distilled using citrus fruits and botanicals. harrods.com

▼ DON JULIO, FROM £32

If you’re thinking salt, down the hatch and a squeeze of lemon, then look elsewhere. Don Julio’s nuanced tequilas are produced in limited quantities in rural Mexico and matured in American white oak barrels. It’s time to forget about the slammers and move on to these sippers.donjulio.co.uk


▶ HINE ANTIQUE XO PREMIER CRU £115

Hine Antique is now a bespoke blend of over 40 grande champagne cognacs, the premier cru of the region. The average age of the blend is 20 years and the oldest dates back to 1974. The pewter label adds a polished fi nish to Hine’s classic multi-faceted bottle.harveynichols.com

▼ VEUVE CLICQUOT RIVA LA GRANDE DAME, £315

Since guzzling champagne and messing around in a Riva go together so handsomely, our thanks must go to Veuve Clicquot and the peerless Italian speedboat makers for their long-overdue collaboration. All you need to provide is the bikini-clad lovelies to lounge around on the back – strictly French or Italian only, of course…veuve-clicquot.com

▲ COURVOISIER INITIALE EXTRA, £250

Some of the eaux de vies blended by Courvoisier to make its Initiale Extra are 100 years old, so you’d be advised to treat it with deference and respect. Expect complex aromas galore, including truffl e, cedar, cinnamon, orange peel and apricot. It’s an oldie but a goodie.courvoisier.com


LUXURY

ads_resize.indd 5 18/1/10 17:04:17

SPONSORS CAN BE fi ckle beasts – especially in times of recession.

Repton Boxing Club has been keeping young boys, many of them from tough backgrounds, off the streets of London since 1884. Based in Bethnal Green (see our fashion shoot, p40), the club boasted several City sponsors – until recently. Now it’s your turn to step in to the ring. ■To sponsor Repton Boxing Club, and stop us

sending the boys round, call David Robinson

020 7739 3595; reptonboxingclub.com

PHO

TOG

RA

PH b

y John D

avis, johnd

avispho

to.co

m. ZO

LLY (left) as per p

age 41. STE

VE

(right) W

atch: Bell &

Ro

ss, BR

01-92 Phantom

BE A BIG HITTERGive generously or we’ll send the boys from Repton round to beat you up...


REPTON PROMOTIONFEATURES

ONLY 8 HOURS AWAY. DISCOVER OMAN KILOMETRE FOR KILOMETRE. ON A HORSE,

CAMEL OR BICYCLE SADDLE. EXPERIENCE THE WHOLE

WORLD OF OMAN WITH OMAN AIR: DAILY NONSTOP FLIGHTS

FROM LONDON TO MUSCAT.

MORE INFORMATION:

+ 08444 822 309 OR WWW.SOUL-OF-ARABIA.COM

SquareMile220x276Decjan.pdf 1 14/12/2009 14:21

SM 220x276 Layout.indd 1 14/01/2010 09:55:53

p80 tear down the wall: More than 20 years have passed since the Berlin wall came down. one section still stands in Potsdamer Platz – but it’s overshadowed by the superb, sumptuous ritz-Carlton

a peace of the action

porsche panamera p74

modern pantry p85

one for the rhone p89

luxury london p90chequelist

trANsForMer IN DIsGUIse

Is it an SUV? Is it a sports car? No, MARK HEDLEY doesn’t know either – but one thing’s for sure, Porsche’s Panamera is a fl ight of fancy


Chequelist

IF YOU’VE SEEN Michael Bay’s Transformers movies

you’ll know there are only two good things about them: the ’bots

and the bods. With the former, it’s Bumbleebee – a robot that turns into a

Chevy Camaro (a car so aggressive it can make a Corvette cry with one blip of the throttle). With the latter, it’s Megan Fox – an actress who embodies the ‘can’t act, doesn’t weigh much’ generation. Ah… the lovely Miss Fox… Fox by name, fox by nature. She can wax my car any day…

Er, where was I? Ah yes – working my way towards the Porsche Panamera Turbo. Sadly, the newest addition to Porsche’s stable is not quite as good-looking as Megan Fox. In fact, it’s a bit odd-looking really.

Not ugly, per se. But more like one of those celebrity crushes you wouldn’t admit in public. You know, like Amy Winehouse. Carol Smillie. Er, Sonia.

But, the Porsche is as clever as a Transformer. Take the spoiler, for example. At fi rst glance, the rear of the Panamera follows a familiar contour, traced effortlessly down like the iconic Porsche rear we’ve come to know and love. But hit 60mph, and a mechanical ballet begins, the type of which Optimus Prime would be proud of. Two ▶

MAKE Porsche MODEL Panamera turboENGINE 4.8ltr V8POWER 500bhpTORQUE 700nm0-62MPH 4.0secsTOP SPEED 188mphPRICE £95,298


Motors porsche

under the hood: despite having a smaller engine and a weightier body than the Lamborghini Gallardo, the Panamera impressively achieves the same 0-60 time

▶ spoiler wings emerge with a central plate rising to fill the gap in between. The result is a blade-like wing that creates enough downforce to cope with even the most heavy-footed among you. Although it is automatically deployed, there is a button so you can put it up and down at will, which kept me amused for hours.

There’s also a button for erecting a screen in the back – ostensibly a sunblind, it’s also useful for ensuring your rear view mirror isn’t offended by any lesser vehicles trying to keep up with you. There’s also a button for making your seat hot. And another for making it cold. In fact, there are generally a lot of buttons – it’s more flight deck than dashboard.

But unlike pretty much every other manufacturer, Porsche has managed to make these buttons look good. Diagonal lines, chrome-plated edges and ethereal white lights mean that rather than a visual distraction they’re part of the attraction.

Generally, the inside of the Panamera is a very pleasant place to be. Swathes of melted-butter leather and panels of carbon fibre allude to the car’s multiple personalities. And then there’s the Burmester sound system. Despite sounding more like a sausage

than a stereo, Burmester is one of the world’s most exalted high-end audio manufacturers. The only other car in the world that has been fitted with a Burmester system is the Bugatti Veyron – illustrious company, indeed. But this is the first time the company has worked with a manufacturer to create a bespoke unit. There are 16 individually controllable loudspeakers, including a 300-watt active subwoofer and a total output of more than 1,000 watts, creating an unparalleled surround-sound experience.

A great artist to test it with is Adele – who, on a bad stereo, sounds like she’s gargling with nails. But played through the Bermester system, her voice washes over you like an angel’s honeyed whisper.

It’s outside the cabin, though, where the real noise is. Never has one car’s styling caused such a tumultuous stir from the motoring fraternity. From the front, it’s wide, aggressive and menacing. From the rear it’s pert and proud. From the side, it’s, er, different. Neither a sports car nor an SUV – the Panamera does seem to suffer from an identity crisis.

The question is: is it a try-hard, or an overachiever? Well, in the engine department, there’s no doubting the Porsche’s caliber. A 4.8-litre V8 creates a spine-tingling 500hp, which ramrods the Panamera to 60mph in just over four seconds. That’s the same time as the Lamborghini Gallardo I reviewed last month – and the Porsche is bigger with a smaller engine. Simply staggering.

The Panamera does what every great Gran Turismo should – it’s a soft, Andrex puppy when you want it to be, but press the sports button and it becomes a rabid rottweiler. It is, at least to that extent, the ultimate transformer. ■

Canary wharf

the new Panamera has arrived and the team at Porsche’s Canary Wharf showroom is perfectly placed to offer square mile readers a full demonstration of this exceptional new car. the showroom, located at 20 Canada Square, showcases the latest from Porsche, as well as a fitting lounge to specify a new car. It also sells items from the Porsche design driver’s Selection range and can take care of all your Porsche’s servicing requirements. 020 8819 8911; porsche.co.uk/eastlondoncity


Motors porscheChequelist

Europe’s most successful Harley-Davidson Dealership

www.warrs.com I +44 (0)20 7736 2934

Warr’s Customised Harley-Davidson Street Glide

Warr's Ad_Square Mile Edition_45_Warr's Ad_Square Mile Edition_45 19/01/2010 11:51 Page 1

ads_resize.indd 12 19/1/10 12:03:13

SHOOTING STAREx-City hot shot JON HAWKINS puts the new X-bow (pronounced ‘crossbow’) through its paces – and quickly realises that it’s too sprightly even for him

MAKE KTMMODEL X-Bow StreetENGINE 2.0-litre In-line 4POWER 240hpTORQUE 310Nm0-62MPH 3.9secsTOP SPEED 137mphPRICE £49,980


CHEQUELIST

AS I CLAMBER onto the KTM X-Bow’s carbon fi bre sills and into the cockpit, pop on its detachable steering wheel and press the start button, the trip computer fl ashes into life and displays the words: ‘Ready to Race?’ It’s a good question, and one the surroundings of the Silverstone pit lane – not to mention the race-spec Porsche 911 GT3R and Lola T212 sandwiching my X-Bow – help me no end in answering: of course I’m bloody not.

Fortunately for me, I’m sat in a car that undeniably is. Road-legal though it may be, the fi rst car from Austrian superbike specialists KTM does without the likes of a heater, stereo, doors, roof and windscreen, with a resulting kerb weight of just 790kg. Myself aside, there is simply nothing in the car that isn’t absolutely necessary for the task of going very, very fast. Consequently, the X-Bow can accelerate to 62mph in a neck-snapping 3.9 seconds.

Even if you’ve seen the X-Bow in pictures, nothing quite prepares you for how it looks in the fl esh: part insect; part squashed motorbike; part Batman’s weekend runabout. Unusual it may be, but, to my eyes at least, it’s a fabulously coherent shape – the view aft of the driver, where deep sidepods and roll hoops converge and fl are over the rear arches, is particularly evocative. It’s beautifully put together and fi nished, too.

I’ve already seen fi rst hand what the X-Bow is capable of – Phil Keen, who campaigns one in the British GT championship, took me round the circuit for a handful of hot laps, scaring the life out of me and a variety of exotic sportscars – and now it’s my turn to take the wheel at Silverstone, along with several other prospective owners and thrill-seekers at the KTM-organised ‘Drive Orange’ track day.

With my exit from the pit lane safely negotiated, I fl oor the accelerator and brace myself for a sweeping series of curves that the X-Bow handles with eye-opening poise before spitting me out onto the Hangar straight. As the car gathers speed – which it does with admirably controlled fury – so the already brutal buffeting of my helmet increases, distorting my vision into a blur that takes

a short while to adjust to. If a mosquito had sneezed within a two-mile radius,I’d have noticed the air disturbance.

But once acclimatised after a couple of stints, I’m in thrall to the car’s astonishing ability. It runs out of cornering grip long after I run out of balls, with the steering beautifully weighted and precise and the 240hp Audi engine delivering seemingly bottomless reserves of torque.

Before long I’m ushered into the pits for the last time – prematurely as it turns out, since one of our number managed to park his X-Bow in one of the gravel traps (it is returned some time later, looking as though a couple of tons of cat litter have been tipped over it).

The next time I fi nd myself in the car it’s a couple of weeks later, outside of the confi nes of a circuit. I pick my X-Bow up from the rather incongruous location of an industrial estate in Chessington before heading off to the south coast. It is, predictably for England, absolutely pouring with rain, and right now the one

place I don’t want to be is sat in traffi c in a bright orange roofl ess, windscreen-less sports car. Far apart from the discomfort of the water streaking across my visor and running down my back, the constant gawping of fellow drivers and pedestrians is unrelenting; a mini Batmobile it may be, but the X-Bow offers little in the way of stealth.

By the time I arrive I’m soaked to the bone and freezing cold. While the X-Bow is a doddle to drive, it absolutely betrays its superbike lineage in the rain – anything short of full waterproofs won’t give much protection when the heavens open.

To criticise the car for its lack of practicality, however, seems harsh when its remit doesn’t really stretch to driving on motorways under severe weather warnings. And all is forgiven as soon as the rain clouds and the traffi c depart – for all its heroic posturing on track, the X-Bow almost makes more sense on a clear, fast road. It communicates every ripple in the tarmac without compromising the surprisingly good ride quality, and the turbocharged Audi lump revels in being let off the leash.

When the rain returns – lighter this time – I’m ready for it, and on empty New Forest roads the KTM is ludicrously good fun, taking the greasy, hole-ridden roads in its stride. More to the point, I’ve become quite accustomed to seeing the car parked on my driveway, and by the time I have to return it to its Chessington base even Batman would have struggled to wrestle the keys off me. ■ ktm-x-bow.com

●●It’s part insect; part squashed motorbike; and part Batman’s runabout


MOTORS KTM

Great escapes berlin

Life is a cabaret at Berlin’s sumptuous Ritz-Carlton, says eugene costello. Just 20 years after the Wall came down, it’s another world…

a joyful peep behind the curtain


chequelist

By the time you’re reading this, Christmas will be done and dusted, bonuses – if you’re lucky enough to be receiving one – still a little way off and you’ll be in the thick of the double-whammy of ‘dark-on-the-way-to-work, dark-on-the-way-home’.

So let us suggest an antidote. Rather than surrendering to the depressing languor of post-festivity winter, embrace it. Go somewhere where they do winter properly, and make the most of it.

If you’re looking for a winter weekend wonder that will give you something to smile about in the next few weeks, you could do far worse than head for Berlin. Whether you’re after a weekend of culture, sightseeing or the simple existential pleasure of wandering the streets of this most cosmopolitan of cities, where old and new hunker down cheek-by-jowl – much like the Square Mile, but with a far greater mix of residents than our fair City – Berlin has it all.

The weekend square mile visited – we’re going to level with you, dear reader, because we like you, damn it, and we respect you – we had no intention of touring galleries. Or museums. Or any of the myriad cultural opportunities this great European city affords. That’s not to say you shouldn’t. It’s just we had only one thing on our mind. Well, two, to be precise. R. And, of course, R.

And by a happy and fortuitous coincidence, those seeking R&R should stick to the letter of the law of rest and recreation – the expert here, as so often, is another R, Ritz-Carlton.

And the Ritz-Carlton in Berlin couldn’t be better placed for those who want to see a little of the tourist trail without too much effort. A glass-and-chrome beauty in Potsdamer Platz, some 20 years ago this was wasteland in front of the notorious Wall that prevented the good burghers of east Berlin from buying Levi jeans or Coca-Cola and consigned them to driving only Trabant cars. Life was grim. Then down it tumbled, liberating them so now they can live life to the Max. Or however that slogan goes.

Since visiting the Wall is now number one on the checklist for visitors to Berlin, we’ve got some good news for you.

The square in front of the Ritz-Carlton, Postadamer Platz, contains one of the only extant sections of the Wall, around which the Manhattan-like skyscrapers of this business district have sprung up, dwarfing the Wall. Even the Metro station next to it makes it look gnat-like by comparison.

If, like us, you’re content simply to gaze down at the once-mighty Wall from the luxurious comfort of your bedroom, it’s hard to envisage how it once struck terror into the heart of the citizens it imprisoned. Like the terrible king Ozymandias in Shelley’s eponymous poem, time and a seismic shift in the geo-political landscape have robbed it of its power to terrify, rendering it little more than a curio, a footnote in history.

Talking of the luxurious comfort of the bedrooms, since we rarely ventured out of the hotel in the two days we were in Berlin, let us tell you what a joy it is. Why would you venture out if – like us – you sign up for the Ritz-Carlton Club package?

If the lobby tells you that you’ve arrived somewhere pretty, pretty special – a sweeping grand staircase and marble columns whet the appetite – then Club Level makes you feel like a visiting statesman. Or celeb. Or just someone with a decent expense account and a very accommodating company accountant.

The hotel’s Club Level is on floors ten and eleven of the hotel, and access is by your own special key that means only you can make the elevator stop at these VIP floors. It didn’t half make us feel important, we don’t mind telling you. In fact, quite often there would be no one waiting to use the lift to see just how important we were so we’d hang around for a few minutes, waiting for a sufficiently decent audience to build up before taking the lift, brandishing our key that just screamed ‘VIP coming through!’

They didn’t seem as impressed as we’d hoped, though possibly they were just hiding it really well…

The rooms at Club Level are super-swanky – the most comfortable bed ▶

●● Why would you venture out if, like us, you sign up for the club package?

grand designs: (opposite) the Brandenburg gate by night; (above) the ritz-Carlton’s impressive lobby


Great escapes

▶ you’ve ever slept on (the famous Ritz-Carlton feather bed with fluffy pillows), chic, contemporary furniture and a bathroom of dark wood and marble, with such luxurious touches as Waterford crystal glasses. Swish…

But it is the Club Lounge that makes you – or rather, made us – reluctant to leave the hotel. With a blazing fire and floor-to-ceiling windows that looked out either over the puny Wall – Erich Honecker, we laugh at your memory – and Potsdamer Platz in one direction, and Berlin’s largest inner-city park, the Tiergarten in another, it’s easy to get your feet under the table.

Add to that the fact that all food and drink in the Club Lounge is complimentary and it all becomes simply irresistible. We’re not talking a warm whisky and soda with a few KP

nuts thrown in, either – one evening we spent sinking into one of the impossibly luxurious sofas gazing out over Berlin in the growing darkness as the twinkling streetlights came on, appearing as a thousand fireflies hovering and dancing over the rain-splashed streets of the city, gorging ourselves on choice cuts of steak and fillet of salmon, washed down with the finest wines known to humanity.

All the while, around us hovered beautiful multi-lingual girls whose sole purpose in life, it seemed, was to cater to our every whim. We felt we had visited one of those strange planets that Captain James Kirk and crew would sometimes alight upon in Star Trek – and we were in no rush to get back to the mothership.

I don’t care if John F Kennedy’s famous phrase ‘Ich bin ein Berliner’ translates as ‘I am a doughnut’ (it would have been far worse if he had gone to Hamburg or Frankfurt, after all). After the pampering, cosseting, totally self-indulgent weekend we had courtesy of Ritz-Carlton and the delightful ladies of the Club Lounge, I would be a doughnut not to want to rush back at the first possible opportunity (see what I did there?). Keep my room ready… ■Standard double, £295; Club Level double, £410;

for special offers, see ritzcarlton.com

●● Around us hovered beautiful girls catering to our every whim

We’re not going home: an apartment; the Boutique Prairie spa and pool; the welcoming Club LoungeThe PureFrankFurT am main

an über-cool design hotel in the city centre that lives up to its name and is themed in pure white: from the leather furniture and custom-made Plissee lights down to the fluffy towels and silky bedlinen. there are even white laptops for guests to use. the look manages to avoid being sterile with coloured lighting that warms the lobby and natural oak floors in the bedrooms. staff are consistently friendly and helpful, and although there is no restaurant, the buffet breakfast is well worth setting your alarm for.Price: doubles from €99, including breakfastT: 00 49 69 710 4570W: the-pure.de

FionA DuncAn’s top tip for Germany’s Number Two city

hotel Guru

See hoTelguru.com For more


chequelist Great escapes

Skiing next week?

It’s what bonuses were made for

020 7401 1101 www.skiverbier.com

SV Square Mile Magazine Jan 2010:Layout 1 19/01/2010 11:54 Page 1

ads_resize.indd 13 19/1/10 12:26:47

London’s cunning alternative

Welcome to The Fox Club, a sharper social choice for the discerning. Step inside and you’ll immediately recognise the qualities that make our private members club and bijou hotel a departure from the usual. It’s not quite an anti-club, but it’s certainly an antidote to the many of Mayfair’s traditional establishments. It’s a fun and friendly place to unwind with friends, eat fine food and even spend the night in dreamy luxury.

February Promotions*• Valentine’s Day! Bed and Champagne breakfast deals for Feburary the 13 and 14th, please contact [email protected] for further details.

• Morning: Kick start your day with the chef’s fabulous Full English Breakfast for £10 (normally £15.50).

• Lunch: Forget about any new year resolutions or diet at lunch time, as we are topping off any 2 course lunch for 2 people with a complimentary lusciously lovely dessert!!!

• Evening: We have the perfect fix for crowded rush hour trains: Come to the fox club after work to wind down over a glass of wine or a killer bloody mary… as we are taking 10% OFF all drinks 7pm to 9pm.

• Work hard party hard: Fancy throwing a party even just for fun?? Do it at The Fox as we are allowing 20% off any party with an expenditure of over £1000.

• Need a fully equipped meeting room? There is 20% off room hire on all meeting rooms.

* Promotions are available monday to friday only and expire at the end of February

The Fox Club London46 Clarges Street, London, W1J 7ER

Tel: 020 7495 3656Email: [email protected]

www.foxclublondon.com

SM 220x276 Layout.indd 1 15/01/2010 14:02:19

In a cobbled square of handsome Georgian merchants’ townhouses in Clerkenwell (that is, the townhouses are handsome, not the Georgian merchants, as far as I know) is a modern gem. In the Modern Pantry young chef-proprietor Anna Hansen has wrought a minor miracle – a deli/table commune café/fine-dining restaurant that champions the seasonal and trumpets the dazzlingly eclectic, at pizza-chain prices.

We went on a Sunday when, incredibly, you can choose any three courses for just £22. Downstairs, the bar and café was doing brisker business than trackside on Derby Day, though without the ‘tic-tac’ gestures of on-course bookies. No secret language here – just simplicity, ranging from the crisp and concise menu to the refreshingly uncluttered appearance of both the café and the dining rooms upstairs, all clean lines and white tables. Like a students’ union dining room at a particularly avant-garde institute of cutting-edge design in, say, Stockholm.

And so to the food. After an especially well-mixed Bloody Mary to take the edge off the day, it was time to get down to business. We cheated by getting a ‘tasting menu’ of starters – smaller portions, but more of them. Sweetcorn, date and coriander fritters with green pepper

relish and Greek yoghurt sounded like a playful mix of tastes but made a beautifully composed – and balanced – dish that was reminiscent of a good bhaji with raita, Mediterranean-style. Crab rarebit was workmanlike, but in honesty it is hard to get overly excited about anything on toast.

But if I could relive the Krupuk quail eggs every Sunday, my God, I would never complain about a hangover again. Like mini Malaysian Scotch eggs, these came in tempura batter with enough crunch to lift the dish from a whimsical amuse bouche to something altogether more substantial, the just runny quail eggs proving the whole beautifully worked filigree to be a triumph of timing as well as taste. Served with a lime chilli dip, you’ll wish you’d asked for a basket of these in place of a main course.

Mains range from the solid – rosemary and garlic leg of lamb, the day we visited, with all the traditional trimmings – to the exotic – Cavalo nero, a black kale-like cabbage from Tuscany, with a gratin that makes it comfort food to die for, served with a smorgasbord of savouries, dumplings and samosas.

For dessert Hokey Pokey ice cream is a home-made delight that is a confection of creamy vanilla around a heart that is a miniature washboard of crunchy honeycomb. To die for.

As we put on our coats and shuffled off into the night for a digestif at nearby Exmouth Market, I glanced back at the Modern Pantry. The dark sky as a backdrop, it stood like a twinkling, well-lit ocean liner bestriding the waves in luxury and comfort. We’ll be going back for another (modestly priced) cruise soon. ■£35ph inc wine. 47-48 St John’s Square, EC1;

020 7553 9210; themodernpantry.co.uk

come again?domInIc glynn certainly will – to a little gem that champions the seasonal and trumpets the dazzlingly eclectic – the Modern Pantry is a revelation

RestauRants Reviews

●● chef-proprietor anna Hansen has wrought a minor miracle


chequelist RestauRant Reviews

chinese cricket club China, so they tell us, will be the engine room of the global economy for years to come. But the Chinese haven’t stopped there, no sir. Turns out they’ve come for our cricket, too.

In January 2009 China played its first cricket international against Iran, and it’s from this epoch-defining event that Chinese Cricket Club takes its name. Housed in the Crowne Plaza hotel – a shy at the stumps away from Blackfriars – CCC is a taste of Sichuan in the City, substituting Yangtze for Thames and Chengdu for Ker-Ching!

The restaurant is roomy and tastefully assembled with the odd

Wisden-style caricature on the wall, while the menu is classic Sichuan with a few tweaks to cater for a City palate.

Delicious honey-glazed pork puffs a fraction too big to shovel in whole in decent company were the pick of the dim sum, and the hot and numbing chicken was a zingy, salty delight bursting with Sichuan pepper.

Both the food and the setting have much to recommend them, though sadly the same can’t be said for China’s cricket team: Iran recorded a 307-run victory. ■ – Jon HawkinsChinese Cricket Club, Crowne Plaza Hotel, EC4V; £40ph plus wine; chinesecricketclub.com

missouri angelThanksgiving is a strange one for the Anglo Saxon. A confusing mix of a harvest festival and genocide memorial day. Still, we in the City have seldom been ones to allow the rights of indigenous peoples to stand in the way of a good dinner – and so it was with a sense of expectation that we rounded up a few tame Americans (well, one and her husband) and headed to Missouri Angel for America’s biggest feast.

We were expecting red, white and blue bunting, Happy Thanksgiving banners, maybe waitresses dressed as Pocahontas

– imagine our relief when it turned out that Missouri Angel is not Planet Hollywood, or Dave’s American Bar & Grill, Romford. Nope, we were in much classier environs.

For decor think minimalist elegance, the service was quiet, discreet and attentive and, most importantly, the pre-meal martinis were authentically powerful. In fact, by the time our last guest had arrived, a fashionable hour or so late, the brace of martinis had worked their magic so well it was quite easy to imagine we were in downtown Manhattan instead of within olive-spitting distance of the Gherkin.

It may have been the martinis that were responsible for the most awful faux pas that I have ever committed at a

restaurant table (and believe, me there is stiff competition indeed). Offered the Argentinian Malbec to taste I took a sip, it went down the wrong way, I choked and managed to spray the white table cloth and my dining companions with such a spray of red it looked like I had been shot through the back of the head. It is at times like this you realise just how good waiting staff are – and at Missouri Angel they passed my cunningly devised test with flying colours (though not as much flying colour as I had produced).

Once the table cloth had been changed we enjoyed an excellent prawn mayonnaise to start whose prawns were large enough to be exciting, but sweet enough to suggest they hadn’t been crucified in the freezer. The blackened rib-eye steak with cajun spices for the main was as tender and as hot as a lover’s kiss and the pecan maple tart to finish brought tears of homesickness to the eyes of the token septic tank.

If it’s in-yer-face Stateside dining you want head to Tony Roma’s. For something a little more subtle, however, Missouri Angel is heaven-sent. ■ – Martin Deeson Missouri Angel, 14 Crosswall St, EC3; 020 7481 8422; £45ph inc wine; missourigrill.com


chequelist RestauRant Reviews

no limitsin change

BoConcept TCR · 158 Tottenham Court Road · London W1T 7NH · Tel. 0207 388 2447 · www.boconcept.co.uk

no change is too challenging. no change is out of reach.no limits in BoConcept.

Visit us in store or call us to fi nd out how we can help you with your interior challenges.

Oval office · Washington DC

book our freeinterior designservice today.

SM 220x276 Layout.indd 1 15/01/2010 13:59:13

THE

GROUP

The TEAM Group, Drury Way

London NW10 0JN United Kingdom

t: +44 (0)20 8784 0100

f: +44 (0)20 8955 1400

www.teamgoc.com

mobilitymade

easy

At TEAM, we understand how easy it is to

get lost in the world of mobility. As

Europe’s leading provider of local and

global moving and relocation

solutions, including immigration, home

search, moving and storage services, and

international assignment management,

we do all the hard work for you.

Now with over 40 operating centres in

14 countries, you can benefit from our

extensive range of integrated services in

each of the following locations:

Belgium

Czech Republic

Denmark

France

Germany

Hungary

Luxembourg

Norway

Poland

Russia

Sweden

Switzerland

Netherlands

United Kingdom

SM 220x276 Layout.indd 1 14/01/2010 10:32:35

The wine world feeds on hype and hyperbole. Wine is complex, multilayered and confusing so anything that helps to simplify things for the consumer is seized upon. Vintages are talked about using broad brush strokes – this one is brilliant, that one is awful. ‘Vintages of the century’ are declared with unlikely regularity.

In reality, things are rarely that simple. Even in the best vintages, some wines will be awful and amid the rain and rot of a poor year someone will have triumphed against the odds. And, of course, most vintages are neither wonderful nor terrible, but somewhere in between. Generally, the most overlooked vintages are those that follow on from the brilliant years. In Bordeaux, 2001 and 2006 were widely damned for not being as good as 2000 and 2005 and only now are people beginning to realise that perhaps they have been too quick to judge. There are plenty of excellent wines at good prices from those initially maligned vintages.

So it is with the Rhones in 2008. Their predecessors, the 2007s, were hailed for their richness, concentration and sex appeal. The influential American critic Robert Parker called it his “greatest ever vintage” and awarded a staggering ten wines a ‘perfect’ 100 points just a few weeks before the 2008 were to be released. The latter have now come into the world without any fanfare or hype and many will be quickly forgotten as collectors scramble around for the last few cases of those ‘perfect’ 2007s.

All this is a terrible shame. There are some excellent wines from the Rhone in 2008, wines with typicity, true terroir expression and fresh, vibrant fruit. They

won’t last forever but will offer some wonderful drinking over the short-term.

The vintage’s main problem – apart from the fact it followed 2007 – was a torrential downpour in early September. Puddles in the vineyards the next morning made for a very sorry sight. Many wrote the wines off there and then. When we returned 12 months on, we found out things were far from lost. Provence’s secret weapon, the Mistral wind, had followed the rain and blown down the valley, drying the grapes. The clouds held off for the rest of the autumn and allowed the growers to save the vintage.

Louis Barroul of Chateau de St Cosme in Gigondas is a garrulous, extroverted

character who presides over his labyrinth-like cellars like the master of a Victorian workhouse. We had visited him the day after the downpour last year, when he feared the worst. On our return in September we found Louis much more bullish about the vintage: “2008 is similar to 1997 and much better than 2002 – the wines are neat and precise. Although we had 300mm of rain in September, the pure limestone soils drained the water quickly and didn’t have the usual hydric stress. The alcohol level is the same as ’98, which shows that ripening was not so bad.”

In fact, across the region we found that diligent winemakers who had carefully sorted their grapes to select only the very best had performed much better than we had expected.

One notable feature of the vintage is that most Chateauneuf du Pape producers have produced only one red wine. The ultra-expensive, glossily-oaked super cuvées of recent years were abandoned in 2008, meaning that the best grapes and barrels have all made it into the ‘regular’ bottlings. As such, the quality of these has been greatly improved and the wines represent the very best the properties could make in 2008 giving a genuine expression of the terroir and the vintage.

Parker’s renewed enthusiasm for 2007, and his rash of 100 point scores, will inevitably drive up demand and prices for those wines. The 2008s could end up looking very good value in comparison. ■The annual Bibendum Wine Burgundy Tasting is

on 12 January at RIBA on Portland Place. For a

reduced ticket price of £20pp call 020 7449 4120

or email [email protected] quoting

‘Square Mile Burgundy Offer’; bibendum-wine.co.uk.

Walking in the ShadoWS of giantSIf you’re looking for a bargain, says gareTh groves, pick a wine from a year following a great vintage. Often overlooked, they can be unsought treasures

Wine rhone 2008

●● 2008 rhones won’t last forever but offer great drinking for now


WineCHEQuELIST

StreetS pAVed WItHGold

property SUper-prIMe london


Chequelist

StreetS pAVed WItHGold

The super-prime London market was so erratic in 2008-2009 that property search agents reported “no pattern at all”.

“‘Unpredictable’ and ‘extremely slow’ would sum up 2009,” says Louise Hewlett, managing director of Aylesford.

Buyers from Russia and the Middle East left the market, says Simon Barnes, who places his clients in neighbourhoods like Belgrave Square, The Boltons and Eaton Square, home to curvy culinary queen Nigella Lawson.

Yet, there were deals being done at the £20m-£30m mark, notes Barnes – a price-range also spotted by Hewlett.

“The most expensive sum paid for a property in 2009 was £34m,” she says. “This is a dramatic fall from 2007-2008 when the highest price paid was £117m.

“There appears to be no pattern in the market as to the nationality of buyers or type of properties coming to the market.”

The price ceiling was permanently off for some of Richard Hardie’s clients at Livingroom Bespoke. “The absolute premier end of the market has seen little change with purchasers willing to pay top money for the very best,” he says.

Hardie searches premium streets such as Earls Terrace and Observatory ▶

With £20m-£30m deals still being struck during the recession, BernadeTTe CosTeLLo asks, where did it all go right for super-prime London?

The MansionCourTenay avenue, n8 Boys’ toys don’t come better than at this really quite magnificent mansion in Hampstead, the hip neighbourhood of presenter Jonathan Ross and ‘king of the arts’ Melvyn Bragg.

Where do we start? The six-car ‘turntable’ garage, the 20-seater cinema, the several-seater kitchen, or the nine-person lift to transport you to the parties you’ve organised in all six reception rooms?

And the mood lighting – well, it’s all over The Mansion, and in The Mansion, to the side of The Mansion, underneath The Mansion...

For the super-rich buyer that splashes out £29.5m on this staggeringly chic nine-bathroom home in Kenwood, 16,400sq ft of space awaits them – along with the gym, the beauty salon, the pool...Price: £29.5m, eight bedroomscontact: Glentree Estates t: 020 8458 7311; glentree.co.uk

one hyde Park, knighTsbridge, sW1

Harvey Nichols and Harrods will be your closest shops, the Mandarin Oriental your local bar and if you reside at One Hyde Park you’ll live at ‘London’s most luxurious address’.

The former site of Bowater House is undergoing a revival of extreme opulence by Candy & Candy. It has hired the expertise of Rogers Stirk Harbour & Partners to blend the architecture of four glass-clad towers with the beauty of Hyde Park.

Inside, you’ll find lavish gardens, communal spas, squash courts and a private wine-tasting facility. Prices of £100m have reportedly been paid at the address. And there will be high security for its residents, who include oligarchs, entrepreneurs, Middle Eastern ruling families and IT supremos from the US – properties come with bullet-proof windows. contact: Candy & Candyt: 020 7592 2000; candyandcandy.com

●● The most expensive sum paid for a single property in 2009 was £34m


property london

▶ Gardens in Kensington, but says the seriously rich are now looking for brand new apartments in Knightsbridge that offer them “toys and security”.

“I have just been instructed to find London’s premier apartment with no fixed budget. Privacy, security and the latest in technology are required. Security is the most important,” he says.

Robert Bailey, whose days are spent in London’s most opulent homes in Kensington Palace Gardens, St James’s Park and The Bishops Avenue, says

“company directors put moving on hold for a while to concentrate on their firms’ performances”, but says: “The top end of the market is beginning to regain its momentum. On the most desirable streets, we are achieving prices similar to 2007 levels. There’s been a scarcity of stock, so prices are quickly regaining their value [from a 25 per cent drop]”.

Search agent Camilla Dell agrees, adding that prices are on the rise because of a “higher-than-usual proportion of cash and equity-rich buyers – despite the uncertain economic backdrop”.

Enter Lakshmi Mittal, the steel magnate at the top of the wealthy premiership – he owns three homes on ‘Billionaire’s Boulevard’, one bought for £117m in Kensington Palace Gardens in May 2008.

According to Savills his lavish residence could be valued at £250m after Mittal reportedly installed marble from the quarry used by the Taj Mahal.

Other agents believe that with 25 bedrooms, the Witanhurst mansion in Highgate Hill is the second largest residence in the capital after The Queen’s.

But it’s a moot point – Robert Bailey reckons that Bridgewater House in St James’s, where the late John Latsis once hosted the G7 Economic Conference, is arguably the most expensive private residence in London.

Bailey also lists some quieter, leafy areas of London that billionaires opt for: “The Bishop’s Avenue in Hampstead and any of the Nash Villas around Regent’s Park and Hamilton Terrace in St John’s Wood [home to Sir Paul McCartney]. You also have Holland Park, which was recently home to Richard Branson.”

If some search agents felt iffy about the market in the last year, they all agree on the next prime projects on their radar, including The Lancasters in Bayswater Road and uber-luxury refurbishments in Knightsbridge or Pimlico.

Hardie says: “I believe north of Chelsea Barracks in the already established Pimlico Green area will see substantially raised interest with the Candy & Candy scheme, making Lower Belgravia a very desirable area, offering as it does such close proximity to Sloane Square and Victoria.” ■

orPheo house 50a eaTon square, sW1

Ask any search agent where London’s plushest address is, and Eaton Square, Belgravia, will be on every list. Set over three floors, with the whole interior designed by Nicky Haslam, this £4.5m townhouse comes with a master bedroom suite and second bedroom, as well as a wine cellar, terrace and separate shower-room.Price: £4.5m for 2,250sq ft of internal living space.contact: Aylesfordt: 020 7351 2383; aylesford.com

23, ChesTer square & 50, eaTon MeWs souTh, sW1

The exclusive neighbourhood of Chester Square, where Baroness Thatcher resides, has an unusual property purchase on offer.

A townhouse and rear mews terrace are offered together, covering 6,482sq ft of prime London real estate. They come with planning permission to connect the two properties and are on the market for £14.75m.

Features in the main house include six double-bedrooms, a dumb-waiter and five bathrooms. And for the outdoors lovers, a plant room, courtyard, terrace, balcony and patio.Price: £14.75m (townhouse and adjacent mews terrace) contact: Aylesfordt: 020 7351 2383; aylesford.com

●● steel magnate Lakshmi mittal lives in central London’s largest private house after the Queen’s


property londonChequelist

“Get Your Pulse Racing This Valentine’s!”

: www.fitability.co.uk : [email protected] : 020 7987 0480

Don’t be a sad, lonely heart this Feb

Come to the unique Fitability instead

From Personal Training to Sports Nutrition

We’ll get you into tip-top condition

REAL one-on-one training with no one else there

So you can work-up a sweat without a care

In this beautiful, modern and well-equipped space

We work with you to find your true pace

You can even train with a partner or friend

Which doubles the fun and halves the spend!

Try our hypnotherapy and feel brand new

So there’s only one thing left for you to do

The time is NOW so don’t delay

Call us today or stay that way!

SPECIAL VALENTINE’S PROMOTION

Let us find you a partner to train with and we promise that if we cannot find a match for you then you can train for

HALF PRICE throughout February!SEE OUR FANTASTIC WEBSITE

FOR FURTHER DETAILS!

















































































ads_resize.indd 11 18/1/10 17:53:02

square mile essentials

ILLICITENCOUNTERS.COMIllicitEncounters.com is the UK's largest extra-marital dating site, with over 310,000 members.

We offer a discreet platform for people in relationships to chat, flirt and meet.

You may be locked in a loveless marriage, or simply looking for some excitement in your life. Here you can meet people just like you, in absolute confidence.

W: IllicitEncounters.com

ILLICITENCOUNTERS

.com

TM

WORLDWIDE DREAM VILLASOur name says it all. We are your introduction to the world most exclusive private villas, resorts, islands and luxury yachts. Our portfolio includes anything from glamorous beach houses in Barbados, super chic villas in Ibiza and the South of France, exotic safari lodges in South Africa to romantic farmhouses in Tuscany. Whether it’s a hideaway for two, a sprawling mansion for 20 or a private Island where privacy is important then why not explore our world.

T: 0845 017 6707 - Int + (0)1978 368531W: www.worldwidedreamvillas.com

ANTHONY GREEN ANTIQUESSpecializing in fine rare vintage wristwatches, we always have a superb and exclusive collection. Magnificent vintage timepieces from the First World War, through every decade to the 1970s. Rolex, Patek Philippeand Omega, all in superb condition andfully guaranteed for two years.

Anthony Green AntiquesVault 54, The London Silver VaultsChancery Lane, London WC2A 1QSW: www.anthonygreen.comT: 0207 430 0038

CORNISH GEMSA fine selection of hand picked 4 & 5 star luxury holiday homes, cottages and apartments. All ourCornish Gems are well equipped and offer their own individual 'wow factor' from unrivalled coastal or rural views through to stylish interior design. Bed linen, towels, bathrobes and locallymade organic soaps are included along with a complimentary welcome pack for your arrival. Surfing lessons, golf days, private catering and a range of holistic therapies availableT: 0844 800 2813E: [email protected]: www.cornishgems.com

SHAPE UP IN THE CITYNot seeing results with your workouts?In 5 weeks I managed to lose a total of 31cm, from my waist, stomach and hips (not to mention nearly 2 stone in weight) All I can say is “don’t knock it until you try it”Also Available Hypoxi Therapy as usedby Cheryl Cole• Target fat loss from stomach and waist.• Used by men and women for weight loss, body shaping and maintenance.• Course of 12 sessions cost £560. Call now & quote SM for a 10% discount!T: 07916 257 927 W: www.HypoxiZone.net

Before

After

Stockist Information

Agent ProvocAteur020 7623 0229agentprovocateur.com

AriAnnA cAdwAllAder020 7460 1018ariannacadwallader.com

Brioni020 7491 7700 brioni.com

BurBerry020 7806 1303burberry.com

cAlvin Klein020 7495 2916calvinklein.com

cAnAli020 7499 5605canali.co.uk

Simon cArter020 7907 9170simoncarter.net

the convenience Store020 8968 9095theconveniencestorefashion.co.uk

crocKett & JoneS020 7929 2111crockettandjones.com

dAvid morriS 020 7499 2200davidmorris.com

d&g time01628 770 988dolcegabbana.com

edwArd green020 7839 0202edwardgreen.com

FAlKe020 7493 8442falke.com

JAeger0845 051 0063jaeger.co.uk

J J Fox internAtionAl020 7930 3787jjfox.co.uk

Kei KAgAmi 020 7619 9869keikagami.com

miKimoto020 7399 9860mikimoto.co.uk

PAul Smith020 7379 7133paulsmith.co.uk

PicKett020 7493 8939pickett.co.uk

PorSche deSign020 7495 2938porsche-design.com

PPQ020 7613 5551ppqclothing.com

Pringle01450 360 200pringlescotland.com

richArd JAmeS020 7434 0605richardjames.co.uk

ted BAKer0845 130 4278tedbaker.com

thomAS PinK020 7498 3882thomaspink.com

turnBull & ASSer020 7638 4823turnbullandasser.co.uk

vivienne weStwood0207 924 4747viviennewestwood.com

the white Shirt comPAny0845 026 0911thewhiteshirtcompany.com

SM 220x276 Layout.indd 1 15/01/2010 19:33:13

BRUNSWICK TERRACE - HOVETwo bedroom 1st and 2nd floor duplexapartment situated on Hove sea front, withdirect sea views. Mezzanine kitchen level.Both bedrooms en-suite. Storage/Officearea wired for broadband. 1st floor has aJuliet balcony. Prime location and a greatholiday home.Viewing highly recommended.£525,000 LeaseholdT: ?????????????E: ????????????????W: ???????????????????

BRUNSWICK TERRACE - HOVETwo bedroom 1st and 2nd floor duplex apartment situated on Hove sea front, with direct sea views. Mezzanine kitchen level. Both bedrooms en-suite. Storage/Office area wired for broadband. 1st floor has a Juliet balcony. Prime location and a great holiday home.

Viewing highly recommended.

£525,000 Leasehold

T: 07775868876E: [email protected]

essentials.indd 2 18/1/10 16:57:25

P019

Because everyone is different, every move is different. At Pickfords we offer the complete range of moving services – that’s why we can create the ideal move for you.

Moving home• Personal move co-ordinator to manage your move

• Choice of packing services

• Fully trained, uniformed moving teams

• Small moves service

• Packing materials

Storage solutions• From a single item to an entire house

• Secure containerised storage in a monitored storage centre

• We’ll collect and deliver

International moving• The world's largest international moving company with over 600 offices worldwide

• Air, road and sea transport options

• Full or part house, small consignments

• Storage centres worldwide

• Door-to-door service

Business moving• Office moves and move management

• IT relocation

• Crate and equipment hire

email: [email protected] your local branch free on

0800 289 229

SM 220x276 Layout.indd 1 14/01/2010 10:30:48

PERHAPS I’M GETTING old, or I have taken too many fast balls to the head. Possibly both. But what the hell happened to 2009? It vanished. Disparu.

It’s a year that has changed more rapidly than David Beckham’s haircut. I distantly remember the great crowd pleaser Kauto Star romping home in the Cheltenham Gold Cup, Ricky Hatton getting beaten up, winning the Ashes, an unsuccessful Lions Tour and so on… but it all seems so long ago now.

In fact, that’s a whole decade gone in a fl ash of imagination.

So let’s shine some 20/20 hindsight on some of the sporting and low-lifery highlights of the decade that has become known as The Noughties. See if you remember it or if, like me, you were too pissed. It’s just a bit of fun...

2000: Football: The French, more used to throwing down their arms, or indeed putting them up, win Euro 2000 2-1 from Italy with a golden goal in extra time. Trezeguet scores, but no one remembers him. Cricket: Bangladesh becomes the tenth Test-playing nation but win only two matches in the remainder of the decade, largely because they have only one bat between the entire team. Tiger Woods wins $9.1m at golf including the US Open by 15 shots, the British Open and the US PGA. Precocious little shit. Rugby: Italy joins the six nations and spends the restof the decade only beating Scotland.

2001: Football: Liverpool, in a show of early form for never doing anything the easy way, wins the UEFA Cup 5-4 against Alaves. Cricket: Australia tediously smashes England 4-1 in the Ashes – the boasting and gloating down under is measurable on the Richter Scale. Golf: Tiger wins the Masters, becoming the fi rst golfer in history to hold all four majors. Precocious little shit. (But what a role model... Ed). The Ryder Cup is postponed because Colin Montgomerie develops foot and mouth disease.

2002: Football: Restoring rightful order, Brazil wins the World Cup and Ronaldo (the original one with the head like a burst Spacehopper) scores all the goals. Boxing: Lennox Lewis beats Mike Tyson in eight rounds. Tyson beats himself in two. Cricket: Surrey wins the

country championship again, which is great, and Ben Hollioake is killed in a car crash, which isn’t. Snooker: Peter Ebdon beats Stephen Hendry in a match now widely acknowledged by pharmaceutical companies as being a more effective cure for insomnia than their expensively-developed sleeping pills.

2003: Football: Man Utd win their eighth Premiership title; supporters clog up the streets of Woking in celebration. Cricket: Australia beats England 4-1 in the Ashes. The Australians remain gracious and dignifi ed in victory underneath a blue moon. Racing: Best Mate wins his second Gold Cup. McDowell wins £600. Kris Kin wins Derby at odds of 6-1. McDowell wins another £600. Ha bloody ha. Rugby: England wins the World Cup against Australia in Australia; the fans are dignifi ed and gracious in victory – but mostly because they are all shit-faced by 9am.

2004: Olympics: Team GB wins 30

medals in Athens including two for Kelly Holmes. Absolutely no one gives a toss. Cricket: Brian Lara makes 400 not out on a shirtfront Antiguan wicket against the England Blind Double Amputees XI. Formula One: Michael Schumacher wins seventh title and is warned by his doctors that cracking a second smile may cause permanent facial damage.

2005: Football: Liverpool beat AC Milan on penalties after a stunning comeback from 3-0 down at half-time. The shops of Istanbul sell out of shell suits and strong lager. Cricket: England defeats Australia 2-1 to lift the Ashes for the fi rst time since 1728. Very understated open-topped bus celebrations show absolutely no joy in beating Australia at anything. Australian government hounded out of offi ce.

2006: Football: Chelsea win Premiership. Only four supporters are able to pronounce the names of everyone in the team. Racing: Rail Link wins Arc de Triomphe and owing to hard core betting for opposing Japanese horse, anomalies are created on the PNU and some punters get 160-1. Not this one, dammit. Tennis: Roger Federer loses a set at Wimbledon. Questions asked in the Swiss Parliament.

2007: Football: AC Milan gain revenge over Liverpool in the Champions League fi nal. Domestic violence shelters in Merseyside are overwhelmed. Boxing: Joe Calzaghe beats Mikkel Kessler to become the greatest British boxer ever. Seriously. Cricket: Australia win Ashes 5-0 from Fred Flintoff’s England. Enough said.

2008: Football: England don’t play in Europe because manager Steve McLaren is Satan, apparently. Racing: Denman wins the Gold Cup. McDowell cleans up and actually leaves the course with some money still in pocket. Rugby: Unaccountably, Wales win the Grand Slam. Enjoyment of the Olympic Games, not my favourite usually if I’m honest, is on this occasion huge as Australia wins fuck all (well, less than us, which any other year would have meant fuck all). Darts: McDowell wins double bet of 1/3 on Phil Taylor winning the PDC and 4/1 Ted ‘The Count’ Hankey winning the BDO. Get in.

So then, a bibulous Christmas and a sporting New Year to you all and I’ll see you at Ally Pally for the arrers. ■

LOWER LIFESTEVE McDOWELL looks back on the highlights and lowlifes of the sporting decade


LOWER LIFEENDNOTES

W- 5 0 - T N I

www.brm-manufacture .com

Fo r s t o c k i s t e n q u i r i e s p l e a s e t e l e p h o n e + 3 3 ( 0 ) 1 6 1 0 2 0 0 2 5

J u r a LT D 0 2 0 7 8 9 8 0 5 2 0 - T H E WaT C H G a L L E rY 0 2 0 7 5 8 1 3 2 3 9

SquareMileMag.indd 1 14/01/2010 23:32:53

SM 220x276 Layout.indd 1 15/01/2010 13:56:36

SM 220x276 Layout.indd 1 14/01/2010 09:45:44

Square Mile Magazine - Issue 45 - 'A Time to Rebrand?'

Documents

Transcript of Square Mile Magazine - Issue 45 - 'A Time to Rebrand?'