Economist.com Cities Guide: London Briefing - March 2006

News this month

Hubble, bubble, toil and trouble

Lighting up in London’s pubs, clubs and restaurants is set to become illegal after the House of Commons voted overwhelmingly on February 14th to ban smoking in all enclosed public spaces. The law, which will take effect in the summer of 2007, brings England in line with Scotland and Northern Ireland, which by then will have introduced bans of their own. The government claims the blanket ban will reduce the number of smoking-related illnesses and deaths.

Controversially, the ban will apply to private members’ clubs, where fat cigars are practically de rigueur in some cases. It is also causing consternation among London’s Middle Eastern residents, many of whom gather to smoke hookah pipes in bars, cafés and restaurants. They claim the water pipes are less harmful than cigarettes, and that banning their public use will hurt both the establishments and the larger community. With the proposed ban yet to pass through the House of Lords, they may still win a concession.

Here we go again

A transatlantic bidding war is looming after NASDAQ, a New York-based exchange, made a surprise offer for the London Stock Exchange (LSE) on March 10th. The bid of £2.4 billion ($4.2 billion)—or £9.50 ($16.60) a share—was much higher than earlier offers from Deutsche Börse, which runs Frankfurt’s stock exchanges, and a consortium led by Macquarie, an Australian investment bank. But the LSE turned it down, saying the bid “substantially undervalues the company, its unique position and the very significant synergies that would be achievable.” LSE’s main shareholders are, however, considering the deal.

The LSE's future is far from certain. Observers now think the New York Stock Exchange (NYSE), which itself recently merged with Archipelago, an electronic trading system, will make an offer. Also lurking in the background is the Paris-based Euronext, which made headlines in 2005 by declaring itself a suitor for the LSE without making an official offer. Not surprisingly, the feverish speculation caused a sharp rise in the LSE’s share value, which climbed by 27% on March 13th.

Reprieved

Ken Livingstone received some welcome news on February 28th when the High Court granted him a reprieve from a four-week suspension of his mayoral duties imposed by a disciplinary tribunal. The suspension, which was due to start on March 1st, will now be frozen pending appeal. Should Mr Livingstone's appeal fail and the disciplinary action not be overturned, the mayor has said he will take the matter to the House of Lords.

The suspension arose from comments Mr Livingstone made in February 2005, when he asked a pestering Evening Standard reporter if he was a “German war criminal”; on learning the reporter was Jewish, the mayor likened him to a “concentration camp guard”. Despite calls from Jewish groups and politicians for an apology, Mr Livingstone refused to back down. In his defence, Mr Livingstone alleged his comments were aimed at the reporter’s employer, Associated Newspapers, which he accuses of supporting fascism in the 1930s.

In a development that may further please the mayor, Associated Newspapers has agreed, under pressure from the Office of Fair Trading, to give up its exclusive rights to distribute free afternoon and evening newspapers on London’s rail and Tube networks as of April. This clears the way for new commuter newspapers—a move that has been welcomed by Mr Livingstone, who has called for an end to the monopoly.

Nasty to nice?

Built in 1851 on the site of a hospital for fever and smallpox, King’s Cross station has long enjoyed a less than salubrious reputation. But that may now change after Camden council approved a £2 billion redevelopment scheme on March 9th. The ambitious plan envisages turning a 67-acre site north of the station into offices, flats, student accommodation, shops and other facilities. Along with the arrival of the new Channel Tunnel rail link, the massive project is expected to transform the surrounding area, which has a reputation for being run-down and crime-ridden. But not everyone is happy: some local residents complain the scheme has been “rushed” and that it could turn King’s Cross into “another Canary Wharf”, with lots of empty office space. According to the firm behind the plan, Argent, the redevelopment will be finished in 2020.

Going into extra time

The new Wembley Stadium will not open with the Football Association (FA) Cup final—the showpiece event of English football—on May 13th as previously planned. A host of problems have delayed its completion until August at the earliest, forcing the FA to move the cup final and two international matches to other sites. This is bad news not only for football fans but also for the FA, which has borrowed heavily to fund the stadium’s £757m budgeted cost. Wembley’s overall price tag is now expected to top £1 billion.

Multiplex, the Australian firm in charge of the construction, blamed the delay on design changes, the performance of subcontractors, trade unions and the weather, among other things. In the second half of 2005 Multiplex's losses on the stadium totalled £106m, and the company is now unlikely to bid for a project connected with the 2012 Olympics. But not everyone is gloomy. Paddy Power, a bookmaker, says it has paid £10,000 to gamblers after it began taking bets on Wembley’s completion date at the end of January. Many of the winners are thought to be builders working on the site. “We have been caught with our pants down,” said a Paddy Power spokesperson.

Catch if you can

March 2006

Beckett Centenary Festival

March 19th-May 6th 2006

One of the giants of Irish literature, Samuel Beckett would have been 100 in April this year (he died in 1989). To mark this anniversary, the Barbican has joined forces with Dublin's Gate Theatre to produce a six-week festival on both sides of the Irish Sea.

Drama, prose, poetry and film are all on the programme, and the range should appeal to both Beckett aficionados and newcomers alike. Theatrical highlights include “Waiting for Godot”, directed by Walter Asmus, “Endgame” and “Krapp’s Last Tape”. Unfortunately the last of these, starring John Hurt, is already sold out. There will also be panel discussions, films of all 19 of Beckett's stage plays, and a performance of Mark-Anthony Turnage’s saxophone concerto, the Beckett-influenced “Your Rocakby”.

Barbican Centre, Silk St, EC2. Tel: +44 (0)845 120 7550. For more information, visit the Barbican's website.

More from the London cultural calendar