The International Marbella Set

Monday 19 March 2012


Spanish regional savings banks Unicaja and Caja Espana have merged following the government's recent requirement that banks raise substantially their provisions set aside to cover toxic real estate exposure. The merger, in which Banco Caja Espana-Duero (Banco Ceiss) is effectively absorbed into Unicaja Banco, creates a group with approximately (EURO)80 billion ($104.9 billion) in total assets and a turnover of (EURO)120 billion ($157.4 billion), according to a joint statement released late Friday. The deal must first receive Finance Ministry and central bank approval and would require (EURO)850 million ($1114.86 million) of state aid, which is added to (EURO)525 million ($688.59 million) already injected into Caja Espana in 2010 by the Bank of Spain's restructuring fund (FROB).

Saturday 17 March 2012


FOREIGN nationals not entitled to free treatment are said to owe Swansea Bay's ABM University Health Board more than £130,000 — the second highest figure in Wales. According to figures obtained by the Welsh Conservatives, only Cardiff and Vale UHB is owed more, at just over £200,000. ​ Darren Millar AM The Welsh Government has now said it is looking at further measures to help health boards recoup their costs. Figures obtained by the Tories following a Freedom of Information request show the money owed to the NHS in Wales more than doubled between 2008 and 2011. Of the £380,000 that was unpaid, at least £199,311 is still outstanding to Wales's seven health boards, while a minimum of £185,700 was written off after bosses exhausted efforts to be reimbursed. Shadow Health Minister Darren Millar AM expressed concern at the figures, arguing the Welsh NHS was in no position to be owing substantial sums of money. He said: "There are strict guidelines in place for explaining details of charges to patients who are required to pay. "The Welsh Government should look carefully at how well these rules are followed. "Any money written off by the NHS is regrettable when budgets are being squeezed so hard. The big rise evident in these figures is of great concern." The figures show that, in 2008/09, £70,815 had not been paid back. In 2010/11 that had increased to £257,713. And the Tories also claim there was been a downward trend in the rate of collecting money owed, down from 71 per cent in 2008/09 to 43 per cent in 2010/11. Some treatments, such as medical emergencies at A&E or compulsory psychiatric care, remain free of charge for everyone in Wales — regardless of where they are from or how long they have lived in the country. Other procedures, which include non-life-threatening outpatient care, are supposed to be paid for by non-EU residents. But the process and guidelines are far from straightforward as some countries have signed healthcare agreements with the UK. This makes its citizens exempt from some charges. ABM officials could not be contacted for comment. A Welsh Government spokesman said: "All visitors to Wales requiring NHS treatment are assessed as to their eligibility for free NHS treatment. "All treatment received in an accident and emergency department is free to all. "We have issued clear guidance to NHS organisations which states that they should recover the cost of caring for overseas patients who are not entitled to free care. "We are looking at what further measures can be introduced to support NHS organisations recover costs."

 

If the negative development in the Spanish housing market continues, it can – worst case – lead to renewed concern over that the Spanish state will need outside help – or even go bankrupt. Banks might face several hundred billion Euros in losses on the Spanish real estate market. This will mean a recapitalization of the Spanish banks – capital that can only come from the Spanish state. Now there is nothing new in that; but what is interesting is the free admission of a need to nationalize the Spanish banks. If you glace at the graph you will see the Danish housing market has dropped between 22% and 30% from the top – time and actual drop depending on market segment. As Danske Bank is roughly half the Danish finance sector it is hard to escape the conclusion that Danske Bank is in at least as big trouble as the banks in one of the more notorious frivolous and irresponsible economies in Europe. Danske Bank will presumably peg their flag to the difference in unemployment figure (Spain hovers around 20%). True as that may be; but unemployment figures are notoriously difficult to compare between countries. Not only do criteria differ; but the criteria differs over time – according to political convenience. It is kind of discussing distress on board the Titanic: “It’s only your end that is under water! I’m fine!!” That is the nearest to a Freudian slip admission of life threatening financial distress we can expect from Danske Bank. But it is time to bust a few myths before they come too much of age – and be established as “truths” – and draw some conclusions. 1)    Looking at the graph again prices on condominiums/flats/apartments had begun to drop way before the collapse of Lehman Brothers. Two years in fact. That was more due to a temporary rise in interest rates that made the calculations of monthly payments  – even to the least lunatic bank manager – clearly unrealistic. 2)    Generally sales were falling from mid 2007 – I trust the reader is can see through the regular seasonal variation to distinguish the trend. 3)    The collapse of Lehman Brothers and the perhaps inept handling of the resulting Credit Default Swap disaster had indeed nothing to do with the much deeper issue of banking irresponsibility and incompetence. Alan Greenspan has been quoted for saying that what surprised him was that banks had not taken preventive measures in their own interest. The forces of the free market self-regulating controls do NOT apply in the financial sector. 4)    The next major meltdown – which clearly is underway (Spain will not be able to meet the budget target agreed upon by Rajoy) – will in essence have nothing to do with the Greek debacle. Greece was/is – all things considered – handled more effectively than the collapse of Lehman Brother. To be fair: There was more advance warning and the cacophony of idiotic optimism had been quenched by German lack of sentimentality. 5)    You can see the lack of linkage to the Greek situation by the fact that the Danish and Spanish drop in housing prices (and lack of trade) is simultaneous. Danish banks were not exposed to Greek sovereign debt to ANY appreciable extend. Furthermore Denmark has a reasonably healthy export which is more than can be said about Spain. Still a near similar and at least simultaneous price drop in Denmark and Spain points to a factor nobody has wished to mention: The banks of both countries are to all intents and purposes deceased and with no future without state ownership.

 

Scotland Yard authorised the deployment of rubber bullets ready for use on the streets of London 22 times in the past two years, The Independent can reveal. The figure suggests the Metropolitan Police had considered ordering its officers to open fire during public disorder incidents far more frequently than previously thought. The Yard yesterday refused to say on what dates and during which situations it ordered some of the nearly 3,000 baton rounds it possesses to be distributed to firearms teams. It said the release of such information could endanger future policing operations. The revelation that the Met authorised the distribution of the non-lethal rounds on average almost once a month in 2010 and 2011 follows the disclosure earlier this week that senior officers wanted to fire rubber bullets at rioters in south London last summer – but firearms specialists could not reach the trouble spots in time. The Met has now promised to make "more agile use" of the weapons. Although they have been used in Northern Ireland for many years, baton rounds have never been fired on the British mainland. Even in the extreme circumstances of last August's riots their use would have been seen as a significant escalation in police tactics and a move away from Britain's consensual policing model. The figures, obtained by the Liberal Democrat peer Dee Doocey, are an indication of an increasingly muscular response to what police believe is the increased threat to officers and the public from gangs or individuals bent on violent disorder. But campaigners argue that the use of non-lethal firearms in crowd control has no place in policing on the British mainland. The Yard was criticised last year when it released a statement saying that baton rounds – referred to by police as attenuating energy projectiles (AEPs) – might be deployed if extreme disorder occurred during a protest in London against tuition fees. In a written answer to a question last month from Baroness Doocey, the London Mayor, Boris Johnson, confirmed on behalf of the Met Commissioner, Bernard Hogan-Howe, that the force had "authorised the movement" of rubber bullets 22 times in 2010 and 2011. But he said details of the incidents would only be given under conditions of secrecy because, if made public, they could compromise future operations. Lady Doocey, a member of the Greater London Authority and the Metropolitan Police Authority until it was replaced with a new body in January, said the disclosure of the precise dates was in the public interest. She told The Independent: "I have long believed rubber bullets have no role in policing demonstrations in London. This secrecy over their potential use merely confirms that view. It is simply wrong for the Met to be silent when on so many occasions the use of rubber bullets was being considered." Rubber bullets are designed to offer a non-lethal alternative to conventional firearms and police argue modern AEPs pose less threat of serious injury. Between 2006 and October 2011, the Met Police bought 2,700 AEP rounds. It said it could not produce figures for baton round deployments in previous years, adding that it followed strict guidelines designed to protect life and prevent serious injury. Opinion about rubber bullets remains divided within police ranks. A Met Police review of last summer's riots revealed officers dealing with violence in Enfield and Brixton decided against deploying the weapons because they believed it would escalate the confrontation. During the rioting, Sir Hugh Orde, president of the Association of Chief Police Officers, said he did not consider the deployment of rubber bullets in London to be sensible in "any way, shape or form".

Friday 16 March 2012


The Spanish government approved Friday a controversial permit to explore for oil offshore the Canary Islands, in an area that could become by far the largest source of oil production in a country heavily dependent on crude imports. Approval of an exploration license marks the latest move in Spain's shift away from a policy of subsidy-dependent renewable energy projects as it seeks ways to improve its trade balance and steady its budget, but will likely face opposition from environmentalists and local government officials concerned about the threat of damage to the island's tourist-friendly, white-sand beaches.


Spain's public debt soared to a record high at the end of 2011, Bank of Spain figures showed Friday, as Madrid struggled to slash costs and escape the eurozone debt crisis. Public debt amounted to 734.96 billion euros ($960 billion), equal to 68.5 percent of annual economic output at the end of 2011 -- up from 66 percent three months earlier and 61.2 percent at the end of 2010. The accumulated debts breached the European-Union agreed limit of 60 percent of gross domestic product (GDP) but was still below the eurozone average, which approached 90 percent in the third quarter last year. It was the highest public debt ratio recorded in Spain since statistics in the current format were first published in 1995. Spain's public debt is rising fast because of runaway annual public deficits that have shot past EU-agreed targets, in part owing to high spending by regional governments. The previous Socialist government, ousted by the conservative Popular Party in November elections, had forecast a debt of 67.2 of GDP for the end of 2011, aiming to curb it to less than 70 percent in 2014. But the European statistics unit Eurostat was not so optimistic. It forecast a public debt of 69.6 percent in 2011, 73.8 percent in 2012 and 78 percent in 2013. Spain's conservative government, which took power in December, has yet to announce a new public debt target. The public debt ratio has grown without interruption since the first quarter of 2008 when, after nearly a decade of fast growth and budget surpluses, which trimmed the debt, it amounted to 35.8 percent of GDP. The situation in the 17 regions is particularly worrying: at the end of 2011 their accumulated debt rose to 140.1 billion euros, or a record 13.1 percent of national GDP, from 11.4 percent a year earlier. Municipal debts, however, eased over the year to 35.4 billion euros or 3.3 percent of GDP. Regional governments enjoy a high level of autonomy, prompting concerns in financial markets that their spending could compromise the central government's deficit-cutting goals. Spain had agreed to cut its annual public deficit to 6.0 percent of GDP in 2011 but it overran that target by a wide margin and ended up reporting a deficit of 8.51 percent of GDP. After winning a slight relaxation from Brussels in its goals for this year, Spain is now aiming for an annual deficit of 5.3 percent in 2012 and 3.0 percent in 2013. But the regions are not entirely to blame. The central government's finances also deteriorated in 2011, as its public debt rose to 52.1 percent of GDP at the end of the year from 46.4 percent a year earlier.


The Ministry for Development has announced a delay in the opening of the second road bridge into Cádiz which will now not be open to traffic until 2013. Minister, Ana Pastor, said that not with all the money in the world could a 2012 opening be achieved. 2012 was the target date so that it coincided with the bicentenary of the 1812 Spanish Constitution which was signed in the city on March 19 1812. The General Courts of Spain were transferred there while in refuge from the Peninsular War. The Minister added, ‘It will take at least another 15 months, and that only if there is no wind’. The Ministry of Development says the suspension bridge is now 75% complete, but a fundamental part of the project, linking to the 13 pivot bases which are already showing in the middle of the Cádiz Bay is still to be done. The bridge is the largest road infrastructure project in Spain and has a cost of about 300 million € and will link Cádiz with Puerto Real. It will be known as the Puente de la Constitución de 1812, and not the ‘Puente de la Pepa’ which was the name given by the previous Minister, Magdalena Álvarez.

IT MAY just be the single largest contrarian bet in the euro zone. Sheldon Adelson, a casino tycoon, is expected soon to choose between Madrid and Barcelona for a €16 billion ($21 billion) gambling resort. The euro-zone turmoil does not faze him: “It will take us four to five years,” he told Forbes magazine. “By then everything will be solved.” Mr Adelson’s Las Vegas Sands (LVS) hopes to create a “Euro Vegas”, capable of attracting the 1 billion people who live in the 50 countries within a five-hour flight from Spain. He chose the country because of the weather and because its unemployment rate, now at 23%, “assures us the support of the government”. The numbers are certainly eye-popping. LVS would invest €6 billion in a first phase to build four hotel strips—eventually reaching 12—as well as casinos, shops, restaurants, golf courses and convention centres. LVS says the project could create 260,000 indirect and direct jobs, enough for nearly half the unemployed in Madrid. Spain is already the fourth-largest holiday destination in the world, but LVS reckons Euro Vegas would attract 11m new tourists on top of the 57m a year Spain already gets, increasing tourism spending by €15.5 billion over the next ten to 15 years. In this section News of the world Good for you, not for shareholders Zimplats happens Watch this space »Place your bets on Euro Vegas Luxury on the cheap Nazis in space The view from Liverpool Reprints Related topics Gambling Barcelona Madrid Spain Madrid and Barcelona, used to battling it out on the football pitch, have won a promise of neutrality from the central government. Barcelona admits that Madrid has the edge so far, since it has been talking to Mr Adelson on and off since 2007. But Barcelona has not given up. Mr Adelson recently visited a beach-front site near the city’s El Prat airport, which like Madrid’s Barajas has plenty of spare capacity. National and local leaders are keen on the project but opponents are sceptical of LVS’s claims about job creation, and worry that the casino will become a “fiscal and legal paradise” of tax breaks and exemptions from labour laws—a charge which regional officials deny. However, LVS is thought to be seeking a relaxation of Spain’s ban on smoking in public places, and lower gambling levies. Whichever city won would also have to bear the cost of such things as transport links to the resort. Given Spain’s precarious public finances, and considering that, as Mr Adelson puts it, there are “tens of billions to be made” from the resort, the authorities ought to resist any temptation to splash out taxpayers’ money to win the deal. They will have to assuage public fears of encouraging gambling addiction, infiltration by organised crime and the environmental impact of such a giant construction project. As in Singapore, where LVS recently opened a big casino resort, Spanish officials play down gambling as a small part of the overall package. Another worry is that the project will not happen at all. Spain has had its share of unrealised property developments. A €17 billion casino complex in the desert of Aragon, proposed in 2007, remains unbuilt. But LVS has withstood the global downturn pretty well, and the success of its Macao and Singapore operations gives it plenty of financial firepower. LVS boasts that its Marina Bay Sands development has “moved the needle” in Singapore, with record tourism figures one year after its opening. Euro Vegas would be much larger. A casino resort may lack the prestige of, say, a technology cluster, but Spain will have to take a few gambles to get its soaring unemployment under control.

Thursday 15 March 2012

 

55 false security guards working in sensitive positions have been arrested in Madrid, Toledo, Cuenca and Badajoz. The National Police arrested the 55 who have all be established to have been working fraudulently, and some with jobs looking after explosives or acting as bodyguards. A statement from the National Police said those arrested lacked the necessary preparation for the work and were employed because of falsified qualifications. Some of them have a previous criminal record.

 

The Spanish Government has revealed that it wants to increase the tax on diesel vehicles because they ‘contaminate more’. The change will be a modification on the vehicle matriculation tax. The Secretary of State for the Environment, Federico Ramos, gave the news after meeting with the environment experts and said that in principle the regional administrations are in agreement. The local City and Town Halls say they now want to first analyse the financial consequences for them. Diesel vehicles not only pollute with CO2 but also emit Nitrogen Dioxide, and particles in suspension.


The ex Mayor of Alcaucín in Málaga, José Manuel Martin Alba, who was arrested for a second time with seven other people on Tuesday in the ‘Tristan case’, which comes from the ‘Arcos operation’, made a statement on Wednesday to the investigators of the UCO central operations unit of the Guardia Civil. La Opinión de Málaga reports that he denied knowing the land registry civil servants that he allegedly manipulated with false data to obtain the classification of building land. These plots were often purchased by foreign investors with the idea of building on them. However, the Guardia Civil has said that the land was not buildable and therefore a crime of fraud had taken place, and this part of the investigation is still under reporting restrictions. The declarations continue from the arrested civil servants from the land registry, some in payments, others in Hacienda, as well as three management auxiliaries. The Guardia Civil says that the civil servants, ‘coordinated by a lawyer, modified the data base of the land registry with the end of introducing the false information to give legal coverage to the construction of homes on non-buildable land. The Guardia Civil contends that in exchange they received illegal commissions. Rafael Yus from the Nature Studies Group GENA said that he was not surprised by the ex-Mayor’s new arrest. He said the modification to the land registry was ‘part of what they do here’ and claimed it was ‘a corruption which extends to other municipalities, but which it difficult to demonstrate’.

Wednesday 14 March 2012

 

A Goldman Sachs director in London has resigned after publishing a devastating open letter accusing senior staff of being "morally bankrupt" and bent on extracting maximum fees from clients by offloading unsuitable investment products. Greg Smith, who has left his post as executive director of the firm's equity derivatives business in Europe, claimed that chief executive Lloyd Blankfein and president Gary Cohn have "lost hold of the firm's culture on their watch". He added that "this decline in the firm's moral fibre represents the single most serious threat to its long-run survival".. Smith's charges, which were swiftly denied by the bank, were published in Wednesday's New York Times and raised questions about the firm's relationship with existing clients, whom Smith claimed were referred to as "muppets". Lord Oakeshott, the Liberal Democrat peer and his party's former Treasury spokesman in the Lords, said the matter raised questions about any relationship between the UK government and Goldman. Smith, who joined Goldman as a summer intern and worked at the firm for 12 years, first in New York and then in London, claimed managing directors made their remarks about "muppets" in internal email. "I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It's purely about how we can make the most possible money off them." Selected as one of 10 people, out of a firm of 30,000, to appear in a Goldman recruiting video which is played on college campuses around the world, Smith has hired and mentored new recruits and managed a summer intern programme for the bank. "I knew it was time to leave when I realised I could no longer look students in the eye and tell them what a great place this was to work," he wrote. He said junior analysts are absorbing a culture in which the most important question is "how much money did we make off the client?", and that hearing talk of "muppets," "ripping eyeballs out" and "getting paid" will not turn them into "model citizens". "Leadership used to be about ideas, setting an example and doing the right thing. Today, if you make enough money for the firm (and are not currently an axe murderer) you will be promoted to a position of influence." In response, Goldman Sachs denied that Smith was giving an accurate view of life at the company. "We disagree with the views expressed, which we don't think reflect the way we run our business. In our view, we will only be successful if our clients are successful. This fundamental truth lies at the heart of how we conduct ourselves," the bank said. Fast-track to promotion Smith claims to have advised the five largest US asset managers, Middle East and Asian sovereign wealth funds, and the world's two largest hedge funds. His letter did not name them, but Bloomberg ranks Man Group and Bridgewater Associates as the biggest hedge funds. The LibDem peer Oakeshott said: "We know in the City that Goldmans help themselves before their clients. Now here's the proof. Greg Smith says you get promoted there if you make enough money for the firm and you are not an axe murderer - and the people of Greece and the rest of the eurozone are paying the price after Goldmans cooked their books and Greece joined the euro at an unsustainably high exchange rate. Until this culture is stamped out, Goldmans are not fit and proper to receive a penny of British taxpayers' money or advise our government in any way." Goldman is among the gilt-edged market makers which help to facilitate trading in UK government bonds. Smith claims the fast-track to a Goldman promotion involves persuading clients to invest in stocks or other products "that we are trying to get rid of because they are not seen as having a lot of potential profit"; getting clients to trade "whatever will bring the biggest profit to Goldman" – referred to internally as "hunting elephants" and securing a job trading "any illiquid, opaque product with a three-letter acronym". Goldman has lost the "secret sauce" that allowed it to endure for 143 years and is at risk of losing its clients' trust, wrote Smith: "Goldman Sachs is one of the world's largest and most important investment banks and it is too integral to global finance to continue to act in this way. The firm has veered so far from the place I joined right out of college that I can no longer in good conscience say that I identify with what it stands for."

Tuesday 13 March 2012

 

Anthony Downes, who was arrested in Amsterdam, escaped from a prison van while being transported from HMP Manchester to Liverpool Crown Court in July last year. He had been facing trial for conspiracy to possess firearms with intent to endanger life and conspiracy to cause damage with intent to endanger life. He was convicted in his absence at Woolwich Crown Court and is due to be sentenced at the end of this week. Downes, 26, featured as part of Crimestoppers’ latest Operation Captura Campaign in October 2011, which seeks to locate wanted fugitives believed to have fled to Spain, who are wanted by UK law enforcement agencies. Lord Ashcroft, KCMG, Founder and Chair of Crimestoppers, said: “This is yet another example of how criminals on the run will eventually be caught and I am delighted to hear that this individual has been arrested. “Crimestoppers is seeing huge success with its fugitive campaigns and the fact that we now have 48 arrests out of 65 appeals from our Captura campaign proves that wanted criminals will eventually be brought to justice.” Deputy Chief Executive, Dave Cording, added: “This arrest comes less than six months after the fifth anniversary of Operation Captura. “Through close collaboration with the Spanish police, SOCA and the public, these individuals have nowhere to hide and those still on the run should think about handing themselves in before they are caught next.” This latest arrest brings the total number of those located to 48 out of 65 appeals since the campaign launched in October 2006. Operation Captura is the successful multi-agency campaign which identifies serious criminals believed to be on the run in Spain.


Therapist Carol Duquemin, 59, decided to act after being forced to have her hip replacement removed after just four months. Duquemin – whose ordeal came after the manufacturer recalled the faulty product in 2010 – has teamed up with free health care service Medilink to provide advice and support to expats. “Up to 9,000 people in Spain could have been affected by the implants,” Duquemin said. “People are still not aware of the problem and the danger it poses to their health. “The law says you have to have it removed in the country where you had the operation but some hospitals here are not giving the help and information that they should, and it is a big operation that causes a huge trauma to the body.

REBEKAH Brooks and her racehorse trainer husband are among six suspects arrested today by detectives investigating allegations of phone hacking at News International. The former News International chief executive and Charlie Brooks were arrested at their Oxfordshire home on suspicion of conspiracy to pervert the course of justice, sources said. Police are searching several addresses after dawn raids also took place in London, Hampshire and Hertfordshire, Scotland Yard said. Ms Brooks, a former editor of The Sun, had been on bail after being questioned by detectives last summer on suspicion of phone hacking and corruption. Today’s arrest comes after her lawyer, Stephen Parkinson, said evidence given by Sue Akers at the Leveson Inquiry had brought “much prejudicial material” into the public domain.

 

A young Dutch-Moroccan activist was arrested in Morocco on Monday. The Dutch Foreign Ministry has confirmed the detention of Yuba Zalen to Radio Netherlands Worldwide. Mr Zalen is a member of the 20th of February movement, a young protest group inspired by the Arab Spring and calling for greater democracy in Morocco. He was in Morocco to report on the unrest in the northern town of Ait Bouayach, where dozens have been injured in clashes with security forces. Moroccan media are barely reporting on the unrest. Activists say that local internet cafés have also been closed down. The website Amazightimes.com reports that Yuba Zalen is likely to appear in court in the town of Al-Hoceima on Thursday. The Dutch section of the 20th of February movement has called for his immediate release.

The city of Bni Bouayach in the mountainous area of the Northern Rif in Morocco has been sealed off since Wednesday, March 8. All the repressive organs of the state, the army, the gendarmerie together with the secret and public police, have joined forces to blockade the small city. The inhabitants live in fear of police terror and the raiding of houses and arrests. Other repressive forces are hunting down activists who fled into the neighbouring mountains to escape arrest. The media black-out is total. This violent intervention is the dictatorship’s response to peaceful demonstrations organised by the young unemployed and the activists of the 20F movement that have been ongoing for many months. The protest is against the generalised lack of jobs and bad social and economic conditions in this marginalised city of the Rif. The regime has used a variety of tactics against the protest movement, from “containment” to targeted repression of the leaders of the action. One activist, Kamal al-Hassani, was killed on October 27th last year, another, Bachir ben Shu'ayb, was abducted and put on trial. His imprisonment and the accusations against him have provoked new protests in the city. National highway Number 2 was blocked and a sit-in was organised in front of the municipal buildings and the National Electricity Company. On March 5 the youth wanted to organise a march (25 km) to the city of Al Hoceima in support of the arrested comrade but the police stopped them. Then on Thursday, March 8, the forces of repression attacked the demonstrators during a sit-in. The police used truncheons, teargas and water cannons to disperse the demonstrators. The masses of this city, known for their fighting traditions and activism, have defended themselves by throwing stones (see this report). Demonstrations have been organised in the main streets leading to clashes in different neighbourhoods. Many people have been injured in those clashes. Fearing arrest, most of them have avoided being treated in the hospitals. Dozens of demonstrators have also been detained. The attack of the repressive forces was ferocious. No-one was spared, not even the women and the children. In seeking out demonstrators, the police entered people’s homes and destroyed the contents or plundered them. They are even hunting down the young activists in the mountains all around the area. Friday the police arrested a group of activists, including Wael Faqih a leader of the unemployed youth association (Association Nationale des Diplômés Chômeurs au Maroc), and Mohammed Jalloul, a teacher in a primary school and also an activist of the 20F movement. This attack against the city of Bni Bouayach is taking place against a background of growing revolt in some cities (such as Taza and Khénifra) that are completely marginalised by the state. These protests are organised by the 20F movement. They reflect the absolute bankruptcy of the system and the lack of alternative. It also shows the real nature of the dictatorship which is not ready to reform itself out of existence.

A Moroccan appeal court confirmed a death sentence Friday against the mastermind of the April 2011 Marrakesh bombing that killed 17 people, and handed a death sentence to one of the others convicted.

The chief judge of the court confirmed the death sentence against Adil Al-Atmani, the mastermind of the bombings, in which 17 people -- Moroccans, French and Swiss nationals -- were killed and dozens more wounded.

And it converted the life term handed down to his chief accomplice Hakim Dah to a death sentence.

But the death sentences are unlikely to be carried, with capital punishment in the process of being taken off the statutes.

The court also increased the jail sentences against six of the other men convicted at the original trial in October from six to 10 years and confirmed a two-year sentence against a ninth man.

The appeal trial went ahead after the prosecutors appealed the original sentences.

The appeal court sentences were in some respects harsher than what the prosecution had asked for. The prosecutor on Wednesday had only asked for the life sentence against Dah to be confirmed.

But he had wanted harsher sentences against the seven other people convicted.

The defendants denied many of the charges against them during the trial.

The Marrakesh bombing was the deadliest in the north African kingdom since attacks in the coastal city of Casablanca in 2003 which killed 33 people and 12 bombers.

The defendants had denied the charges against them during the trial.

One of the defendants' lawyers, Khalil Idrissi, criticised the "harsh" sentences, which he said were an "act of complacency" towards the families of the victims and their countries.

Another defence lawyer said the "court increased the punishments of several defendants who had nothing to do with this crime".

But relatives of the French victims welcomed the tougher sentences.

"Now I can grieve," Jacques Maude, who was close to one victim, said.

Capital punishment has not been carried out in Morocco since 1992 and is about to be formally wiped off the book, with a new constitution voted through in July explicitly affirming "the right to life".

The Marrakesh bombing was the deadliest in the north African kingdom since attacks in the coastal city of Casablanca in 2003 which killed 33 people and 12 bombers.


Anti-government protests in Morocco's impoverished northern Rif mountains are spreading after a second village clashed with police resulting in serious injuries and 10 arrests, reported the state news agency. For the past 10 days, there have been demonstrations in the small village of Beni Bouayache following the arrest of a local activist. On Sunday they spread to the nearby town of Imzouren. The state news agency said a number of police were injured when they stopped a protest march at Imzouren headed for Beni Bouayache. The report said some injuries were grievous without further details. Chakib al-Khayari, an activist with the Rif Association for Human Rights, said 20 policemen had been injured in Sunday's clashes, but he didn't have figures for the locals wounded. "We don't know the number of wounded because they can't go to the hospital for fear of arrest," he told The Associated Press by telephone. Morocco's Rif mountains, which parallel the Mediterranean coast, are one of the poorest parts of the country and have been historically marginalized with little government investment. On March 2, plainclothes police snatched Bachir Benchaib, a leader of the local chapter of the February 20 pro-democracy movement, as he was leaving the mosque following evening prayers. The state news agency described Benchaib as a violent gang-member implicated in robberies and other criminal activities. In subsequent days, supporters demonstrated for Benchaib's release, blocking the road to the port city of Al Hoceima, 280 miles (450 kilometers) northeast of Rabat, and carrying out sit-ins in front of the police station and government buildings. Starting Wednesday, police began dispersing demonstrations with tear gas and water cannons and carrying out a campaign of arrests. Clashes with security forces generally now take place at night, said al-Khayari, who estimated that some 24 people had been arrested. He predicted that the protests, which have included demands for more electricity and water in their village, would continue. "They want their rights and a better life," al-Khayari. "They have nothing in this region." The Rif mountains were once an independent republic in the 1920s, until the region was reconquered by the French in 1926. After independence from France, the region revolted against the new Moroccan central government in 1958, before the rebellion was crushed. The people are primarily from the Berber ethnicity, North Africa's original inhabitants with their own language, and during demonstrations they waved flags from the Rif Republic as well as the flag of the North Africa-wide flag of the Berber movement.

Monday 12 March 2012

Leon Max and his gamekeepers
Katia

Leon Max (right in the first picture) with his gamekeeper-cum-head groundsman Roy Goodger (far left). Katia Elizavora (right) is a model and face of Leon's fashion line. She was spotted at the age of 14

At the end of a long green alley stands a mini-Versailles, nine windows wide, approached by a pair of billowing stairs. 

Cream stone façade, stone lions caged on the roof by a four-square balustrade – Easton Neston looks like the home of a Renaissance prince.

The house was built in 1702, by the architect Nicholas Hawksmoor. Unusually for such an exquisite piece of architecture, it’s never been open to the public.

I’m shown into the drawing room by Roy Goodger, gamekeeper-cum-head groundsman, a reassuringly tweeded figure who has worked at Easton Neston for over 30 years. 

The ‘prince’ in question, Leon Max, a hugely rich Russian, acquired Roy when he bought the house for £15 million back in 2005 from Lord Hesketh, a former Tory treasurer who had his own Formula 1 racing team in the Seventies. 

Easton Neston was built in 1702, by the architect Nicholas Hawksmoor. Unusually for such an exquisite piece of architecture, it's never been open to the public

Easton Neston was built in 1702, by the architect Nicholas Hawksmoor. Unusually for such an exquisite piece of architecture, it's never been open to the public

Max has reputedly spent £25 million doing up the house. There’s a Rubens above the fireplace the size of a double bed: a Herculaean boar hunt that previously belonged to the Heskeths.

Max, or Leonid Maxovitch Rodovinksi, is one of a clutch of rich Russians buying up chunks of Britain. But instead of spending his fortune on football clubs, like Roman Abramovich, or sprawling Surrey mansions like Abramovich’s ex-business partner turned bitter rival Boris Berezovsky, Max has done what no other Russians have yet done – bought up a spectacularly beautiful English stately home.

And now, just as the Mid-West nouveau riche in F Scott Fitzgerald’s Great Gatsby entertained his way into American East Coast high society, Max is launching an assault on the English smart set – although assault is the wrong word; it implies some sort of resistance.

During the shooting season the house is stuffed with chic guests – including the Earl and Countess of Albemarle and society actress Georgina Rylance. 

The formal gardens at Easton Neston

The formal gardens at Easton Neston. 'I really like England. I like the lifestyle and the country. The history. The culture, which London is full of. The country pursuits,' said Leon

For the moment Max, however, is nowhere to be seen. Nor is anyone else; Roy aside, no visible or audible staff. There are no family photographs on the French ormolu tables. 

No Mrs Max: Max is twice divorced and his only daughter, Sophie, he tells me later, is 24 and lives in Portland, Oregon. There isn’t even a dog. It’s as though the house is in a deep, brocaded sleep.

Max walks into the drawing room. He looks both very un-English and utterly at home among this slightly blank European grandeur – perhaps because his thick mane of silvered dark hair and fleshy nose make him look indeed like one of Mantegna’s renaissance Gonzaga princes – all he needs is a pair of red and white parti-coloured tights. 

Instead he’s in tweeds and chocolate-brown moleskin trousers, achieving the almost impossible goal of looking country but trendy.

His first lines are very English indeed.

‘I hope someone has offered you something – a cup of tea?’ 

They have. 

‘I’m sorry. There’s no one here. My butler is in my house in Los Angeles (his LA house used to belong to Madonna). Normally we have flowers,’ he waves a hand apologetically around the room. ‘But everything is closed up for the winter.’ 

Katia and Leon in his office. Following his divorce, he had an affair with the model, who still treats him with a mixture of coquetry and bitterness

Katia and Leon in his office. Following his divorce, he had an affair with the model, who still treats him with a mixture of coquetry and bitterness

Max is very different from other rich Russians. Unlike the oligarchs, he did not hack his fortune from the Darwinian bloodbath that followed the collapse of communism. 

‘I don’t have many Russian friends,’ he says, maintaining his distance. ‘My childhood friends are dead – either from bad health, or they died in perestroika.’

Into the drawing room strides the six-foot-tall blonde Katia Elizavora, model and face of Max’s fashion line, who was spotted aged 14 in the street in Saratov, a town south of Moscow. 

Following his divorce, Max had an affair with Katia, who still treats him with a mixture of coquetry and bitterness. 

She announces: ‘I can’t stay longer than 1pm for the photographs, Leon. I told you. I have an audition this afternoon. I have my life.’

I ask him if Katia is his muse or a girlfriend. He laughs: ‘The roles have been confused.’ 

He talks about their relationship in terms of Pygmalion, the sculptor who fell in love with his creation, brought to life by the gods: ‘I dressed Katia up. As it is perfectly in my image it is difficult not to develop tenderness.’ 

But in the myth Pygmalion and his creation live happily ever after.

Katia in the gallery

Katia in the gallery. Leon talks about their relationship in terms of Pygmalion, the sculptor who fell in love with his creation, brought to life by the gods

Born into Leningrad’s Soviet intelligentsia, Max fled Russia as a teenager in the Seventies, blagging a Jewish visa to Israel. Instead of changing planes in Vienna, he claimed political asylum.

‘I was being driven through Vienna in a government van. The streets were very beautiful but the signs were all in German, a language I did not speak. That was the moment I realised I had to sink or swim.’

Luckily Max’s mother had given him three Fabergé family photograph frames; he sold them and used the money to start his new life. 

‘I’d love to buy them back. So if you hear of some lunatic paying over the odds for Fabergé frames, it will be me.’

His mother, now 90, still lives in St Petersburg and Max goes to see her a couple of times a year. 

‘When I go back to Russia now, it’s as a rich foreigner. Which is good.’

After a stint as a personal trainer in New York, he ended up in LA, working for a start-up fashion company.

‘I thought, I can do that. So I started my own company. By 25 I was a millionaire.’

His company is Max Studio, a mid-market women’s clothing line. It sells, he tells me, ‘over a million units a month. That’s why I have the wherewithal to do all this.’ 

Leon is proud of the Rubens in the drawing room - 'It used to hang there. So when it came up for sale recently I bought it. I thought it would be nice to have the same picture there. Also it fits perfectly,' he said

Leon is proud of the Rubens in the drawing room - 'It used to hang there. So when it came up for sale recently I bought it. I thought it would be nice to have the same picture there. Also it fits perfectly,' he said

All this being Easton Neston, his new English life: he now runs his global clothing empire from the design studio he created in a burnt-out servant’s wing, built by Sir Christopher Wren. He has just launched his new line, Leon Max, in the UK.

I ask him if he made any money out of the birth of New Russia.

‘Not as much as I should have,’ he jokes.

But then he closes up. Does he do much commodity trading?

‘I don’t want to talk about it.’ 

He does admit, reluctantly, that his family back in Russia have been very successful. But he is only too aware of the potential price: Sergei, his childhood best friend, became a rich banker.

‘He’s dead. He was shot at a crossroads by a motorcyclist in 1997.’

His American fortune is safe from the feuds of Russian business; safe from Putin. 

‘Not that I am necessarily against Putin,’ he says. ‘Some countries need a strong leader. You just have to hope he is benevolent.’

Leon runs his global clothing empire from the design studio he created in a burnt-out servant's wing, built by Sir Christopher Wren. He has just launched his new line, Leon Max, in the UK

Leon runs his global clothing empire from the design studio he created in a burnt-out servant's wing, built by Sir Christopher Wren. He has just launched his new line, Leon Max, in the UK

Max is huddled in his chair. Why this house? 

‘It’s a very beautiful house.’ 

Why England? 

‘I really like England. I like the lifestyle and the country. The history. The culture, which London is full of. The country pursuits.’

Does he shoot, hunt? 

‘I don’t hunt but I do shoot. I have met a number of interesting people on shoots. And it’s interesting to go to other great houses. I’m friendly with Charles Spencer (Princess Diana’s brother), who is my neighbour here. 

'So I shoot there, he comes here. The Marlboroughs at Blenheim (the Duke’s daughter, Lady Henrietta Spencer Churchill, was Max’s decorator). 

'I have another single neighbour who lives nearby at Castle Ashby, Danny Compton (Earl Compton, heir to the Marquess of Northampton). I’m friendly with Orlando Rock (the Antiques Roadshow star).’

Easton Neston, he explains, was love at first sight.

‘I saw it from the helicopter. I knew it was the one.’ 

'Ideally this house should have a family. But it works just as well as a house to entertain in,' said Leon

'Ideally this house should have a family. But it works just as well as a house to entertain in,' said Leon (pictured above: the dining room)

He’d been looking for a ‘disused white elephant of a pile’ where he could set up a UK design studio for his clothing line. 

‘It had to be close to London so I could commute when needed.’

Max bought the house, he explains, the week after the Heskeths had auctioned the contents. 

‘Tragic,’ he says. ‘They had to move all the chandeliers.’

He doesn’t like to waste money. Despite being worth about £1 billion, he doesn’t have a house in London. 

‘It’s not worth it. I stay at the Lanesborough.’

He doesn’t own his own helicopter. 

‘I ring for one if I want one.’ 

His private jets come from bookajet.com. 

‘I’m waiting for a plane. It’s late to market. It’s a turbo prop with vertical take-off ability.’

He even, it appears, doesn’t bother to heat his house. That, he laughs, is a mistake.

‘It just happens to be off. Something happened to it. It’s an absolutely new system. We have underfloor heating here.’ 

Servants' quarters in the basement

Servants' quarters in the basement

He’s proud of his paintings, such as Luca Giordano’s Jacob Wrestling With The Angel – ‘Look at the Angel’s toes, look how dirty they are.’

Or the Rubens in the drawing room – ‘It used to hang there. So when it came up for sale recently I bought it. I thought it would be nice to have the same picture there. Also it fits perfectly.’

In July 2011, Max, freshly divorced from his second wife, the American model and stylist Ame Austin, gave a lavish party.

‘I realised I didn’t know anyone in this country under 50.’ 

Max laid on a champagne-fuelled coach from London to bring his guests: young, cool scions of the new ‘rock-ocracy’ – Pixie Geldof, Otis Ferry – and the old – Edwardian beauty Violet Naylor-Leyland, granddaughter of Lord Lambton, and Sir George Sitwell and his wife Martha, Lady Sitwell.

Bells outside the servants' hall in the basement

Bells outside the servants' hall in the basement

Max himself talks of ‘the Gatsby-esque life’ he leads.

In his study, upstairs, he shows me a newly finished documentary, In Pursuit Of Beauty, which follows Max for six months as he tries to launch his single life in England and his new clothing line: polo at Cowdray Park; his summer party; sailing a sleek navy blue yacht in St Tropez; in the company of Katia.

But there is, he points out, a difference between him and Gatsby. 

‘There’s no Daisy in my life.’ 

He may have no Daisy but he does have girls. 

Katia aside, there were his two marriages which, he says, just ‘ran their course’ – although in the documentary, his most recent ex-wife Ame says for her the divorce was ‘dreadful’.

What about an English girl?

‘I’m an equal opportunities…’ 

He leaves the last word blank. A family? 

‘Ideally this house should have a family. But it works just as well as a house to entertain in.’

I ask if he is lonely. 

‘I have my colleagues who work in the studio,’ he says, waving at the Wren wing. 

‘At the weekends I have my friends.’

Perhaps there is a Daisy, but not a human one. Max grew up with his face pressed against the Iron Curtain, longing for the beauty, the freedom of Old Europe. 

He made his fortune in the New World. And now he wants his Old World friends to love his clothes too.




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