LONDON’S BUSINESS NEWSPAPER
HUNGRY MINDS DON’T EAT A BAD MEAL AGAIN WITH OUR RESTAURANT SPECIAL P18-19 WEDNESDAY 9 NOVEMBER 2022
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HAVE YOURSELF A PRUDENT
DESERT STORM HOW ADLAND IS DEALING WITH A CONTROVERSIAL QATAR WORLD CUP P23
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CHRISTMAS
BRITS ‘TRADE DOWN’ FOR FESTIVE SEASON AS FOOD INFLATION CONTINUES TO BITE EMILY HAWKINS DISCOUNT grocers are looking forward to what could be record Christmases as Brits look for value options ahead of the expensive festive season. Lidl boosted sales by 21.5 per cent year on year over the last three months, sending its market share to a new record high. Rival Aldi, too, increased sales, amid skyhigh inflation which is being felt most
keenly in the food aisles. Shoppers are increasingly switching to cheaper alternatives of food essentials, according to data from insights firm Kantar. New figures out yesterday said grocery inflation touched 14.7 per cent in October on an annual basis, driven by supply chain issues and higher costs for grocers on everything from energy to distribution. Own label sales leapt 10.3 per cent, while
the very cheapest value own label ranges saw sales swell by 42 per cent over the past four weeks. While pricier supermarkets would be protected by customers splashing out for a festive treat, analysts warned middle market grocers would see intense pressure in the aisles this Christmas. Advertising campaigns pitched as ‘price matches’ are now de rigueur amongst some of Britain’s best-known household names.
“You don’t get marketing that direct unless you’re very worried,” Hargreaves Lansdown’s equity analyst, Sophie Lund Yates, said. Kantar’s Fraser McKevitt said he expected Lidl and Aldi to enjoy record Christmas revenues in the UK. Budget chains Aldi and Lidl now take up 16.4 per cent of the market, compared to just 4.4 per cent during the 2008 financial crash.
Analysts at the investment bank Jefferies said Brits were “displaying remarkable resilience in discretionary areas [but] continue to backsolve inflationary challenges in grocery by trading down to discounters”. The biggest grocers have taken a tumble on stock markets this year. Tesco stands around 22 per cent down on where it started 2022, with Sainsbury’s down 21 per cent.
Bank: We’re not inflation nutters – but there’s probably more pain on the way JACK BARNETT
THE BANK of England is not to blame for the UK fumbling into the longest recession since records began and rate setters are not “inflation nutters”, its chief economist said yesterday. Huw Pill (right), who replaced Andy Haldane last year as
Threadneedle Street’s top wonk, said the UK’s slowdown was being “driven by other forces” beyond the central bank’s rapid rate hike cycle. The coming slump is a “necessary part of the dis-inflation [we] need to see,” he said.
Inflation soaring to a 40-year high of 10.1 per cent, coupled with higher mortgage and energy bills, will spark a spending slowdown, plunging the UK into a slow burning economic slump lasting two years, the Bank forecast last week. Bank officials said
the long recession would only happen if borrowing costs hit 5.25 per cent, something which governor Andrew Bailey last week said was highly unlikely. Pill doubled down on those remarks, saying the monetary authority was trying to fix a “deanchoring” in market rate expectations after the mini-budget.
He also said he was “sceptical” of front loading rate rises, suggesting the Bank’s monetary policy committee was unlikely to keep hiking borrowing costs 75 basis points, as it did last Thursday. But, Pill said the Bank “cannot declare victory against second round effects” yet, indicating more rises are coming.
INSIDE BNPL CRACKDOWN IRKS FINTECHS P4 CALL TO FOCUS ON LESS GLITZY GREEN POLICIES P6 HOUSING SLUMP P8 LONDON’S MURDER OF THE DANCEFLOOR P12 OPINION P16
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WEDNESDAY 9 NOVEMBER 2022
STANDING UP FOR THE CITY
Bank’s missteps are history – what matters is where we go next
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ON’T blame us for recession, says the Bank. Fair enough. Many criticisms can be put to the Old Lady but the blame for the triggers behind the UK’s coming downturn – not least the Kremlin’s invasion of Ukraine – cannot be laid at Threadneedle Street’s door. And yet, and yet, and yet. The Bank’s job is not to prevent recessions; the Monetary Policy Committee’s single mandate is to
THE CITY VIEW keep inflation at the target rate of two per cent. Other bits and bobs of the Bank’s operations are obliged to maintain financial stability (as they did during ‘the recent unpleasantness’ in the midst of the mini-budget). So it is in that light that the
Bank’s chief economist Huw Pill’s comment yesterday that Quantitative Easing over recent years has not contributed much to inflationary pressure is worth digging into. It is our contention that printing money in the midst of a pandemic was, and remains, a bad idea; not just us, but figures including former governor Mervyn King are surprised that the Bank’s forecasters did not see the wave of price hikes coming as the world unlocked from the
pandemic. That we are only tightening now is at least in part the reason we are still seeing such weakness in our currency. Nobody can be accused to have been completely bang-on throughout the last few years. The Bank, acting on forecasts that seemed off at the time and have been proven to be total fantasy, made more missteps than others. More useful, though, is looking forward. The Bank has stressed it will not
US TO THE POLLS Americans yesterday voted in the 2022 midterm elections to decide close races across the nation – with the Republican Party favoured to win back control
raise rates to over five per cent, a condition of its recession forecast. But the budget on 17 November will heap more pressure on households and firms through spending cuts and tax rises. That means the Bank won’t have to keep raising rates at a 75bps pace. Instead, the pain will flow from fiscal, not monetary, policy. The fear remains that having been spooked by market moves last time, the Chancellor may inflict more pain than is necessary.
WHAT THE OTHER PAPERS SAY THIS MORNING THE DAILY TELEGRAPH
SURGE IN FRAUDSTERS REGISTERING COMPANIES AT UNSUSPECTING HOMES
Companies House has been accused of being “an enabler of fraud” as figures show tens of thousands of people claim their addresses are being wrongly used to register businesses.
THE GUARDIAN
WARNING OF POSSIBLE EGG SHORTAGE AS UK FARMERS STRUGGLE WITH AVIAN FLU
British egg producers are warning of possible shortages, as farmers leave the industry or reduce the size of their flocks in the face of spiralling costs and uncertainty sparked by the bird flu.
THE FINANCIAL TIMES
UK UNIVERSITY STAFF TO STAGE ‘BIGGEST EVER’ STRIKE IN NOVEMBER
Staff at 150 UK universities will strike over pay and pensions this month in what unions warned will be the largest ever co-ordinated industrial action to hit higher education.
UK economy to emerge from recession 10 Eurozone retail sales rise but per cent smaller than pre-pandemic path analysts warn of looming fall JACK BARNETT THE UK economy will be 10 per cent smaller compared to its pre-Covid growth path after the Bank of England’s forecasted two-year recession ends, a Wall Street bank has warned. JP Morgan said in a note to clients that Britain is on course to miss out on a large chunk of much needed economic growth if the Bank’s downbeat projections play out. Last week, governor Andrew Bailey and the rest of the monetary policy committee (MPC) warned the economy will contract eight quarters in a
row, beginning this winter, which would be the longest recession in around a century. The economy will emerge from the recession around three per cent smaller, meaning the contraction would be far less severe than the financial crisis, the Bank said. However, JP Morgan factored in the country’s growth trend before the Covid-19 crisis hobbled the economy to arrive at the 10 per cent figure. Britain has endured sluggish growth in the decade or so after the financial crisis, primarily caused by awful productivity gains.
This has left households and businesses heavily exposed to the current cost of living crisis, fuelled by inflation surging to a 40-year high of 10.1 per cent. The Bank’s projections were based on rates hitting 5.25 per cent, as priced into markets in mid-October. Bailey and other MPC members have said they are unlikely to reach that level, but they did back a 75 point rise to three per cent last week. “Leaving this caveat to one side, it should be noted that the BoE expects a 1.7 per cent GDP contraction” even if rates stay unchanged, JP Morgan said.
JACK BARNETT GERMAN, Italian, French and other European consumers kept spending in September despite being squeezed by high inflation and energy bills, official figures out yesterday revealed. Retail sales in the eurozone climbed 0.4 per cent in the month, above expectations, Eurostat said. Households are being gripped by inflation across the group of 19 countries using the euro climbing to 10.7 per cent, the highest since the creation of the common
currency in 1999. Despite the budget squeeze, spending is still strong. However, experts said retail sales would drop over the winter due to Europeans having to use energy more frequently. Gas prices have soared since Russia invaded Ukraine. “Looking ahead, with consumer confidence still in the doldrums, and prices for most goods and services still rising, retail sales are more likely to fall again” in the fourth quarter of this year, Melanie Debono, senior Europe economist at Pantheon Macroeconomics, said.
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Brewdog active in Qatar despite footie campaign JACK MENDEL
BREWDOG has signed a deal with an alcohol distributor operating in Qatar, despite launching an ‘anti-sponsorship’ campaign this week protesting human rights in the country ahead of the World Cup. The firm’s beers are distributed in the country by the Qatar Distribution Company (QDC) – a state-owned subsidiary of Qatar Airways – which is the only distributor of alcohol in the country. It is understood the beer-maker does not deal directly with QDC, but with an intermediary which sells across the middle east and Qatar. The revelation comes after Brewdog launched an anti-sponsorship campaign this week protesting against human rights abuses in Qatar, including a reported 6,500 deaths in the building of stadiums. It said a series of fan-zones across the
UK would be set up to watch the tournament as well, with human rights groups benefiting from profits from its Lost Lager range sold during the tournament’s duration. The Unite Union branded Brewdog’s campaign “disingenuous” while citing the pub chain’s own problems with its employees after hundreds signed a letter about the “culture of fear” at the company. A Brewdog spokesman said: “Apple sells iPhones in Qatar – that doesn’t mean it endorses human rights abuses. Neither do we. We are doing our bit to raise awareness of these scandals and injustices and will keep doing so.” “If people want to attack brands, maybe they’d be better off turning their attention to... Adidas, Kia and Visa who are all official partners,” the spokesman for the Scottish brewer added in a statement.
CALL OF DUTY EU watchdog launches deeper probe into Microsoft-Activision deal THE European Commission yesterday opened an indepth investigation into the proposed $68bn (£59bn) acquisition of Call of Duty maker Activision Blizzard by Microsoft over competition concerns.
Citigroup ups holiday days in a bid to nab fresh banking talent LEAH MONTEBELLO CITIGROUP is bumping its holiday day entitlement for staff in an attempt to lure top talent to the Wall Street bank. According to an internal memo seen by City A.M. and first reported by Bloomberg, employees will get 27 days of holiday effective from the new year, increasing to 28 days after two years
and 29 days after five years. The memo said the US bank recognised that staff “value time away from work to rest and to re-energise”. The move comes as the fight for young professionals continues across the City. The firm recently opened a new hub for junior bankers in Malaga to drive better work life balance.
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FTX plunges after Binance bailout deal CHARLIE CONCHIE AND LEAH MONTEBELLO FTX’s coin plunged as much as 75 per cent last night after crypto exchange Binance struck a dramatic deal to snap up its beleaguered rival. FTX, led by billionaire chief Sam Bankman-Fried, had been locked in a high-profile spat with Binance boss Changpeng Zhao in recent days which had sparked an investor exodus from FTX. But the argument took a turn last night as Binance announced it would buy its rival to save it from collapse. “This afternoon, FTX asked for our help,” Zhao tweeted. “There is a significant liquidity crunch. To protect users, we signed a nonbinding letter of intent, intending to fully acquire [FTX] and help cover the liquidity crunch.” He added that the firm will be conducting a full due diligence “in the coming days”. The deal is set to bring together two of the industry’s biggest exchanges and could fundamentally reshape the sector. However, the news sent shock waves across the wider crypto market.
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Laybuy eyes profits this year as cash per customer jumps 32 per cent CHARLIE CONCHIE
BUY-NOW pay-later (BNPL) firm Laybuy yesterday said it was on track to hit profitability as it reported a 32 per cent surge in the amount of cash it brings in per customer. The Kiwi firm said its gross merchandise value had hit £64m in the UK as its average spend per customer surged in the first six
months of its financial year. Gary Rohloff, boss of the Aussielisted outfit, which is currently active in the UK, New Zealand and Australia, said the UK had driven growth across the firm. “The UK remains our growth engine and we’ve made significant progress over the past quarter and are on target for profitability by the end of the financial year in March,”
he said. Default rates had tumbled on the back of investment into its fraud and credit risk management tools, Laybuy said. The firm has tightened its lending criteria for customers, however, as concerns grow that shoppers are taking on dangerous levels of debt through BNPL products to cope with a cost of living crunch.
Fintech groups slam watchdog’s BNPL clampdown CHARLIE CONCHIE
FINTECH bodies yesterday rounded on the City watchdog for “cherry picking” its regulation of buy-now pay-later (BNPL) firms, after it threatened executives with jail time for contravening financial promotion rules. City A.M. revealed on Monday that the Financial Conduct Authority (FCA), which is expected to draw up specific rules to regulate the deferred-payment products by 2024, wrote to bosses last week warning that any communication and product explainers on BNPL constitute financial promotion and therefore fall within its jurisdiction. The move has irked some sections of the fintech industry, who have suggested the watchdog has clamped down hard with financial promotion rules due to a lack of tailored regulation. “Buy-now pay-later should have been regulated a long time ago, but it needs to be done properly,” Luke Kosky, fintech lead at sector group Coadec told City A.M. “Cherry picking which activities are now to be regulated is bad for consumers, bad for firms and bad for innovation.”
In a letter seen by City A.M., the regulator demanded all communication regarding BNPL products is now signed off by regulator-approved individuals. One BNPL firm claimed the letter had also gone to their main retail customers and spooked them into pulling access to the products en masse. Speaking with City A.M., Russ Shaw, chief of tech body Tech London Advocates, warned that regulation is “a good thing” but must not “stifle innovation in the sector”. “Ultimately, loopholes leave regulation open to interpretation and can be misleading and inefficient,” he said. “The FCA and the fintech sector must come together to find an equitable solution as the status quo is not working.” The FCA hit back at the claims, however, claiming “this isn’t a loophole, it’s the law.” “Consumers facing higher cost of living and who are searching for credit that meet their needs would expect us to enforce it,” a spokesperson told City A.M. “The standard for financial promotions is that they are clear, fair and not misleading. It would be a concern if any firm found this a significant barrier.”
ANOTHER RESIGNATION Gavin Williamson resigns as minister after bullying allegations SIR GAVIN Williamson resigned as a government minister last night, stating he wished to clear himself of “any wrongdoing”. It comes after Sir Gavin was accused of a series of bullying allegations including allegedly telling a senior civil servant to “slit your throat” whilst he was defence secretary.
Primark owner takes £1bn extra inflation hit amid low price pledge EMILY HAWKINS PRIMARK owner Associated British Foods (ABF) saw inflationary costs leap by £1bn this year alone, as it weathers “highly volatile” economic conditions and hopes to retain shoppers with its low prices. High street staple Primark said it would hold price hikes for the new financial year at previously implemented rates, as opposed to further hiking prices to swallow headwinds. However, City analysts warned that
while this approach would do well to not alienate customers, it would result in tighter margins and lower profits in the new financial year. Primark’s adjusted operating profit margin for next year was anticipated to be lower than eight per cent. The affordable apparel seller will be hoping to benefit from shoppers trading downwards this winter, as households face inflation levels of above 10 per cent Primark’s total sales toppled £7.7bn, around 43 per cent ahead of last year.
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Investors ditch Applied Graphene as it warns it may run out of cash MILLIE TURNER
MATERIALS firm Applied Graphene saw its stock value almost cut in half yesterday after warning investors that it could run out of cash in the new year after a failed equity raise. Shareholders were less than impressed as the firm failed to rally investors for a previously announced equity raise of up to $10m (£8.7m),
citing “unfavourable conditions” in small-cap equity markets. Shares plunged 43 per cent to 6.3p per share by mid-afternoon. The London-listed materials firm, which supplies graphene to the battery and energy storage industry, warned shareholders: “The company requires additional funding to extend its cash runway beyond 31 January 2023, which as previously disclosed is
the date on which the board expects that the company’s current financial resources will be fully depleted.” Applied Graphene hauled in investment bank Weild & Co’s Crestmont Group in July to lure in investors from the US and other countries outside of the UK. CEO Adrian Potts said in April that Covid-19 and supply chain woes had hung heavily on commercial revenue.
Energy efficiency vital for tackling climate change EXCLUSIVE NICHOLAS EARL
THERE needs to be more of a focus on less exciting parts of the green transition such as energy efficiency if countries are to meet their net zero goals, a leading analyst at energy specialist Schneider Electric has argued. Olivier Blum, executive vice president of energy management at Schneider Electric, told City A.M. enhancing the efficiency of existing buildings was essential to meeting net zero goals over the next three decades – with most western countries reaffirming the target at Cop27 in Egypt this week. In his view, energy efficiency was essential to the world’s fight against climate change and green ambitions for a low-carbon future. He said this had to be done in line with more exciting parts of the green agenda such as new ecofriendly buildings or vast energy projects – which were also important to combatting global warming. Blum believed governments “should pay more attention to cutting energy
costs and insulation”, highlighting that older buildings were typically more lacking in sufficient energy insulation and technology. Such measures would include cavity wall insulation, energy efficient lighting and smart meters, which would all significantly boost the ability of residences and commercial buildings to contain heating. He said: “The past 10 years we have seen a lot of focus on new buildings, when 90 per cent of the equation is existing buildings.” Blum noted research from the International Energy Agency, detailing 70 per cent of global emissions relate to power generation, with older office and residential buildings the most wasteful to heat across developed economies. In his view, resolving this was essential to meeting net zero carbon emissions over the next three decades and to contain global temperature rises to below two degrees from pre-industrial levels. “There is a lot that can be done with technology, and the focus should now be on energy efficiency,” he concluded.
The UK’s increased reliance on overseas shipments of LNG has sparked criticism
Industry body hammers UK-US LNG deal following fracking snub EXCLUSIVE NICHOLAS EARL THE UK’s leading onshore energy body has hammered the government’s decision to chase a long-term liquefied natural gas (LNG) deal with the US, while re-imposing a moratorium on fracking. Charles McAllister, director of policy, government and public affairs at UK Onshore Oil and Gas, blasted what he saw as the hypocrisy of Downing Street’s reported decision to take LNG supplies that originated from US shale sites while effectively banning the process in the UK. He told City A.M.: “This decision
shows that the UK government supports fracking as a technology, as long as it doesn’t take place in the UK. “There is no justification for the UK onshore oil and gas industry to face such hypocritical treatment.” The policy director also criticised the increased dependence on LNG, with its higher carbon footprint and costs, alongside the growing reliance on overseas vendors compared to domestically procured gas. McAllister said: “Imported shale gas does not offer the evident economic, geopolitical or environmental advantages offered by exploiting our own natural gas.” The government has been approached for comment.
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CHIPPED PRODUCTION Nintendo cuts sales projections of Switch console by 10 per cent
THREE ex-partners from PwC’s Cyprus office have left the Big Four accountancy firm to set up a new rival practice in order to continue working with Russian clients. The launch of the new firm, Kiteserve, comes after the three exPwC partners took early retirement from the firm in June, after PwC’s
Judge tells the Mail to instruct cheaper lawyers LOUIS GOSS
A HIGH Court judge has told Associated Newspapers, owner of the Daily Mail and Mail on Sunday, to lower a “disproportionate” legal costs budget while suggesting the company should reconsider its use of “expensive” Baker McKenzie lawyers paid more than £800 an hour. Judge Roger ter Haar KC told Associated Newspapers to revise its £3.18m legal costs estimate down by around 15 per cent, as he said the Daily Mail owner should consider allocating more of the work to lower-paid junior lawyers. The London judge said Associated Newspapers’ £3.18m costs estimate is “so disproportionate to the sums at stake or the length and complexity of the case that something has clearly gone wrong.” The costs estimate sits in relation to a £10m dispute between Associated Newspapers and building contractor Buckingham Group Contracting over construction of a printing facility, which
is set to be heard during a 12-day trial. The judge noted Associated Newspapers’ £3.18m costs estimated exceeded Buckingham Group Contracting’s £1.87m budget by a “significant margin”. In explaining the discrepancy, the judge said “the most important difference between the parties is the amount of the hourly rates charged by the respective solicitors”. He noted Associated Newspapers’ top paid lawyers charged £801 an hour, while Buckingham Group Contracting’s highest paid lawyers charged just more than a quarter of that amount, at £215 an hour. The judge said that while it is within Associated Newspapers’ right to “make use of expensive and experienced lawyers”, it should also consider delegating work to more junior lawyers. The judge gave Associated Newspapers an “opportunity to come back with a revised budget taking this view into account,” as he ruled the company’s costs estimates should be lowered by about 15 per cent.
IN BRIEF
BEXIMCO PHARMA WARNS ON BANGLADESH COVID REVENUES
Beximco Pharmaceutical’s shares slipped yesterday after the company warned of “little to no revenues” from its deal with the government of Bangladesh for Covid19 vaccines. The London-listed company, which last year sealed the deal for a majority stake in Sanofi’s Bangladeshi business, had been supplying the country with Astrazeneca’s vaccine. However, Bangladesh has been on the receiving end of the global effort to donate surplus jabs under the Covax scheme, meaning the government has not been ordering more doses via its deal with Beximco. The pharma firm added that “a widespread lack of desire” for booster vaccines in the country had also dampened demands.
RENAULT AND GOOGLE TO MAKE CARS LIKE PHONES
The boss of Renault said yesterday that he wants to make cars like mobile phones, as the carmaker deepens its partnership with Google. In an interview yesterday, CEO Luca de Meo said: “We want to make the car an intelligent object that learns and one that can be upgraded over the air like a mobile phone.” The pair, which started working together in 2018, are currently building the digital infrastructure that will underpin a software defined vehicle. “The complexity of electronic architecture of cars is increasing exponentially,” added De Meo. Renault is hoping to produce cars with tech that can predict maintenance and supply insurance companies with models based on real driving patterns.
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Cypriot PwC partners leave firm to continue work with Russian clients LOUIS GOSS
JAPANESE gaming giant Nintendo yesterday said that microchip shortages had continued to batter console production, lowering its sales projections. The company raised its annual net profit forecast to 400bn yen (£2.4bn), up from 340bn yen (£2bn).
NEWS
sanctions policy blocked them from working with Russian clients, the Financial Times first reported. PwC’s sanctions policy saw the Big Four firm go further than required in stating it would comply with all sanctions imposed on Russian entities and individuals by any country in the world, even if not legally required to do so. Kiteserve will comply with EU, US,
and UK sanctions, but unlike PwC will not voluntarily comply with sanctions imposed by countries such as Canada or Australia. Kiteserve is currently working out of PwC’s Nicosia and Limassol offices. A PwC spokesperson told City A.M. the new firm will work in a completely separate space from the rest of PwC’s Cyprus team and is looking to transfer to a new space.
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Housing slump is now upon us, says Persimmon NICHOLAS EARL AND MILLIE TURNER
SOARING interest rates and economic uncertainty are eating into sales and reducing consumer appetite for housing, one of the UK’s leading housebuilders revealed yesterday. In its latest trading update, FTSE 100listed Persimmon confirmed its weekly and forward sales rates had slumped since July. Over the past three months, Persimmon averaged net private weekly sales rate per outlet for the period of 0.60, compared 0.78 during the same time period last year. It also only secured £770m of forward sales reserved beyond the current year, compared to £1.15bn in the same window of trading 12 months ago. The results indicate the start of a property slowdown, and the looming recession – which could be the deepest and most severe in nearly a century. The company said: “Rising interest rates and broader economic uncertainty are clearly impacting mortgage lending and customer behaviour and
this is reflected in our recent weekly sales rates and forward sales position.” The company remained bullish about its prospects, with full-year guidance unchanged, average selling prices below market averages to attract customers and a robust balance sheet to endure a now widely predicted recession. Equity research analyst at Quilter Cheviot, Oli Creasey, said: “The company is not panicked, but is preparing itself for worsening conditions... The environment is clearly getting worse.” Persimmon also announced a new capital allocation policy to provide shareholders with sustainable returns while investing in future success. The company has made good progress on build rates in 2022, which are 20 per cent ahead of the prior year. It is now on track to deliver its full year 2022 volume target of between 14,500 to 15,000 homes, despite increased risk from recent elevated cancellation rates. Persimmon also further reiterated its promise to shelter leaseholders from the costs involved in replacing flammable cladding.
PRICED OUT Direct Line to offer cheaper policy as business hit by cost of living crunch
DIRECT LINE is set to launch a cheaper car insurance policy product for motorists hit by the UK’s cost of living crisis, after sales of its motor insurance policies dropped 8.9 per cent year on year, following a 10 per cent uptick in the price of its car insurance premiums.
Hilton Foods warns profit will be dented after pricing talks drag on EMILY HAWKINS MEAT PACKER Hilton Foods yesterday warned its annual operating profit would take a hit after challenges passing on high inflationary costs in its seafood arm, causing shares to plunge. In a trading update yesterday, the FTSE 250 firm admitted its profit would come in at a lower than anticipated sum following challenges in its UK seafood business, plus wider macro-economic challenges.
Hilton Foods said it had been working with retail partners to either mitigate or pass through “unprecedented inflationary costs” but this had taken place “at a slower pace than anticipated”. Discussions with retail partners would continue for the rest of the year and into early 2023, The company’s share price took a hit on the news yesterday, with shares closing down over 15 per cent on the London Stock Exchange.
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Aveva dragged by heavy losses despite shift to subsciption model NICHOLAS EARL
AVEVA has failed to tame hefty losses despite boosting revenues as the technology firm shifts to a subscription model. In its half-year update, the British software specialist yesterday reported a pronounced growth in revenues, which grew 14.7 per cent year-on-year to £551.5m, up from
£480.9m just 12 months ago. However, losses from operations before tax remained high at £77.6m, above the £74.3m shortfall recorded last year. The company was hit by higher costs than expected, particularly regarding research and development alongside distribution. Despite being in the red, Aveva revealed recurring revenue climbed 11.6 per cent to £876.2m, from
£785.2m this time last year. This was driven by subscription revenues which grew 23.2 per cent, with software-as-a-service revenue spiking 85.8 per cent. Separately, French industrial group Schneider Electric confirmed it was still pursuing the full takeover of Aveva last week, though CFO Hilary Maxson said it was “not an absolute must-do deal” for the firm.
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Travel across the pond booming since post-Covid reopening of US ILARIA GRASSO MACOLA TRANSATLANTIC travel has boomed over the last 12 months following the US border’s reopening last November. Data published yesterday by aviation analytics firm Cirium showed that flights from the UK to the US have increased 79 per cent on last year’s level, reaching 92 per
cent of pre-pandemic levels. Heathrow was the UK’s go-to hub for transatlantic travel with 88 per cent of flights departing from the west London hub this month. Meanwhile British Airways, with 35 per cent of all flights to the US, remained the preferred carrier for hopping across the pond. It was followed by the likes of Virgin Atlantic, United, American
Airlines and Delta. The data was backed up by figures from travel provider Trip.com which reported a 382 per cent increase in US hotel bookings by Brits. While it remains unclear if Britons will continue to fly to the US amid the cost of living crisis, aviation veterans believe the dollar’s strength will entice more Americans to the UK.
Twitter halts blue tick plans for US midterm’s sake LEAH MONTEBELLO
TWITTER yesterday confirmed that it would be delaying the rollout of its paidfor verification until after the US midterm elections, temporarily abating fears about fake account misinformation campaigns. As the new social media chief, Elon Musk has laid out plans to allow users to purchase blue-tick verification for their profiles – a privilege that is usually reserved for influential individuals. The main concern was that bad actors could use this new function to pose as public figures and spread fake news during the midterms, which are key scenesetting for the 2024 presidential campaign. “The planned changes to Twitter Blue to make verification more widely available raise the stakes for this kind of impersonation,” said Twitter’s head of safety and integrity Yoel Roth yesterday He said that the new feature would now launch after the midterm election day, which started yesterday. The eccentric billionaire has already thrown his support behind the Re-
publicans in the vote, which Hargreaves Lansdown’s senior markets analyst Susannah Streeter said chucks out any hope for political impartiality for the firm. Streeter warned that strong political stances from Twitter’s CEO could push even the most loyal users away. However, it appears that Twitter is singing a different tune. According to an email seen by the Financial Times from the social media firm to some of its advertisers, the company said it had seen “accelerating” user growth since the Tesla founder completed his $44bn takeover on 27 October. It explained monetisable active daily users for advertisers had hit “all-time highs”, climbing from 15 to 20 per cent. The email said that the US market was growing at an even faster rate. Big name brands like Audi, General Motors and Cheerios’ owner General Mills have all pulled their ads from the social media site, as concerns build over what the future of content moderation could look like under the steer of Musk. Tesla founder Elon Musk took Twitter private last month
TIKTOK OVERHAUL Chinese tech company rejigs US business following ads slowdown
BYTEDANCE-OWNED Tiktok has made a number of leadership changes in its US team, sources told the Financial Times. Some senior employees have been told their jobs have been culled, whilst North America general manager Sandie Hawkins will head up Tiktok Shop.
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Siemens bids £3.5bn for troubled wind unit as it combats China rivals NICHOLAS EARL
SIEMENS Energy has tabled a €4.05bn (£3.5bn) bid to snap up the remaining third of shares it does not own in its troubled wind energy unit listed in Spain. It confirmed the bid for renewables specialist Siemens Gamesa yesterday, which was authorised by the Spanish stock
market regulator CNMW last week. Siemens Energy first announced its plan in May to improve its control over operational problems at the division – which issued three profit warnings in less than a year. The division has been struggling to compete with cheaper Chinese imports, amid growing emphasis on supply security across Europe. Its chief executive Jochen Eickholt
last month called for a quota to protect the volume of turbines installed across the continent produced in the European Union. Siemens Gamesa was the thirdlargest maker last year of newly installed wind turbines across Europe. However, it saw losses swell to €1.2bn in the nine months to June and recently announced it was cutting 10 per cent of its workforce.
London markets ‘taxed to death’ says ex-LSE boss CHARLIE CONCHIE
THE UK’s equity market has been “taxed to death” and “completely throttled” by fiscal policies and regulation, the former chief of the London Stock Exchange Group has claimed, as he warned the capital was in danger of losing its status as a global financial services hub. Speaking with the Following the Rules Podcast, Xavier Rolet, who is credited with transforming the capital markets group during his tenure as chief between 2009 and 2017, said that a shallow pool of equity capital and restrictive rules meant the City risked losing more of its market share to the US. “I believe that if the current trend continues in the UK and Europe, the US market will be even more irresistible because of the pool of capital, the capital solution, and the balance sheet efficiencies that they will offer in an environment which is fragmented,” he said. “That is one area where I would suggest an urgent wholesale rethinking [is needed] of
the regulatory framework and the fiscal framework – which today hobbles UK and European equity markets – to really free the power of equity markets to create that growth to help this really ambitious, talented entrepreneurial position.” Rolet’s warnings point to the scale of the challenge facing ministers and regulators as they look to boost the appeal of London’s markets on the global stage. The government has commissioned two reviews into the state of the UK’s capital markets that looked to ease the way that firms in the UK can float and raise cash. However, London has been beset by firms shunning the bourse in favour of New York, as bosses look to fetch higher valuations and tap into a deeper and more mature investor base. Rolet added that “deep savvy liquid equity markets” would be essential to boosting productivity in the UK and funding entrepreneurial firms. Rolet said that the capital had been ‘throttled’ by rules
GUESS WHO MPs vote on the new chair of influential Treasury Select Committee today
MPs FROM across parliament will vote on who should be the new chair of the Treasury Select Committee today. The five candidates for the position were announced as Andrea Leadsom, Kit Malthouse, John Baron, Richard Fuller (pictured) and Harriett Baldwin.
Hunt to keep banks surcharge cut as banks breathe a sigh of relief STEFAN BOSCIA JEREMY Hunt is reportedly set to rule out a tax hike for banks in next week’s autumn fiscal statement, after previously keeping the option on the table. It has been widely reported the chancellor was considering overturning plans to offset a broader hike in Corporation Tax by reducing the ‘bank surcharge’ –an extra tax charged on the largest lenders.
Hunt is looking to raise around £55bn in the autumn fiscal statement next week in a bid to curb government borrowing. The Financial Times reports Hunt will slash the bank surcharge from eight to three per cent, as originally planned by Rishi Sunak, when Corporation Tax increases to 25 per cent next year for the UK’s most profitable firms. A Treasury source said that the rate of the bank surcharge was “still being decided”.
WEDNESDAY 9 NOVEMBER 2022
CITYAM.COM
Richard Branson faces Galactic lawsuit
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China chip ban forces Nvidia to build alternative MILLIE TURNER
MILLIE TURNER RICHARD Branson is facing a US lawsuit over claims he hid Virgin Galactic’s problems from shareholders. The British billionaire has been accused of defrauding shareholders into overpaying for the space tourism firm’s stock, a US judge said on Monday. Shares in Virgin Galactic tumbled 2.2 per cent to $5.10 per share by midday in the US yesterday. “As the commercial space industry
grows, it is arguably inevitable that we will see a corresponding rise in the number of disputes stemming from this sector,” Rachael O’Grady, partner at American law firm Mayer Brown, told City A.M. “The fact that the industry is comparatively young and that technologies are still being honed also means that grounds for disputes are particularly fertile.” US district judge Allyne Ross has dismissed 31 out of the 35
claims in the security class action, a common dispute in the US when a company suffers a stock price fall. However, Branson must still defend statements made after test flights in July of 2019 and 2021. Susannah Streeter, senior markets and investment analyst at Hargreaves Lansdown, How we reported on Virgin Galactic going public
said: “Virgin Galactic shares have risen like a rocket multiple times but have dropped disappointingly down to earth as shareholders have faced disappointment upon disappointment. “With Richard Branson now facing court proceedings in the US over claims he hid problems from shareholders, confidence in the company appears to be ebbing away further.” The company has lost more than 75 per cent of its stock price value over the past 12 months.
NVIDIA, one of the largest American chipmakers, has sought to maintain its trade relationship with China with a new graphics chip, despite the US export ban. The company has started production on a processor for China, known as A800 GPU, which abides by new rules that aim to limit the country’s access to highlevel chips over concern they could be used for military purposes. “The A800 meets the US government’s clear test for reduced export control and cannot be programmed to exceed it,” the chipmaker said on Monday. Nvidia began production on the chip in the third quarter, the company added, after halting the sale of its popular A100 chip to Chinese customers once the ban was introduced earlier this year. The ban requires US firms to seek government approval for the export of certain chips to countries such as China and Russia. The new rules include a cap on the speeds at which chips, for AI or high-performance computing, can operate.
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G
OSH, how long have you got?” Amy Lamé said with a laugh when asked in a bustling Soho coffee shop what the biggest challenge facing London’s night time economy is right now. It makes sense the former club night organiser doesn’t know where to start – across the city, nightlife venues are struggling to keep their heads above water in the face of rising energy bills, labour shortages and cashstrapped clubbers. While businesses are telling Lamé they were “just about able to survive Covid”, London’s best nights out are “absolutely on the precipice now” due to the absence of similar support, she said. Lamé, who described the current situation as “heartbreaking”, co-founded the nightlife legend Duckie at the Royal Vauxhall Tavern in the 1990s before taking her current role at City Hall in 2016. Ahead of the fiscal statement on 17 November, Lamé is calling on ministers to “step up”, with a wishlist that ranges from the political – a further windfall tax – to small changes which could make a big difference to the industry: “dynamic” visas that would help firms plug worrying bouncer shortages, for instance, and further business rates relief support. She is not alone in pleading for help. Last week trade group UKHospitality warned that more than a third of venues fear going out of business by the
People are making stark decisions about how they’re spending their money end of the year. Amid a cost of living crunch, will London revellers start to shun clubs and instead start staying in with a pack of tinnies? “People are making really stark decisions about how they’re spending their money,” she said. After years hosting club nights and radio shows, on a Saturday night Lamé can now often be found on a “night surgery”, which involves “standing around night bus stops... talking to random people”. Despite the gloomy headlines and battle cries from businesses, Lamé said the top thing she is asked for by punters
CITY’S LAST DANCE? London club closures hurt all of the UK, czar Amy Lamé tells Emily Hawkins
was for somewhere to buy a cup of tea at 2am. What makes her job distinct from her contemporaries in Amsterdam and Paris is a “holistic” view of London’s midnight hours, Lamé said. As well as standing up for bars and pubs, she is also keen to see better pay and safety for night time workers, who are mostly NHS staff. However, her tenure hasn’t all been friendly chats about tea. In 2018, one headline in music mag NME declared ‘what is the point of you?’ while a Change.org petition asking Sadiq Khan to remove Lamé and reconsider the role
garnered more than one thousand signatories during 2020. Have those fraught relationships between disillusioned businesses and City Hall been repaired in the years since? “I would hope so,” said Lamé . “I’ve always worked very closely with the industry,” she said. “People get stressed, people often look for scapegoats, someone to blame. I think
we’ve moved on.” For Londoners heading to bars and clubs, Lamé said a good or bad experience was often made by the journey itself. She called on the government to rectify its “shoddy” treatment of Transport for London after the pandemic, slamming the funding agreement as part of a “punishment" of the city. Lamé is calling on ministers to ‘step up’
Although London was a “resilient city” – and one that would keep dancing on beyond this current crisis – Lamé said mass business failure in London could trigger a domino effect for the rest of the UK. She said the government’s rhetoric “does London down” to the detriment of the whole country. “Our tube trains are built in Yorkshire, the buses in Northern Ireland,” she said, with jobs around the country on the line should TfL continue to struggle. Above all, of course, TfL still just about gets you home. Something to celebrate at the night bus stop, that.
Charles gets caked as Madame Tussauds’ perceptions begin to melt
O
N 24 October, a waxwork of King Charles III was smeared with cake by anti-oil protestors at Madame Tussauds, causing an estimated £170,000 worth of damage. Mere days later, the museum had to remove its statue of Ye (known as Kanye West) following antisemitic remarks and other controversies swirling around the American rapper. A bad couple of weeks for Madame Tussauds, and one that has adversely affected its public image. Attention scores (which measure overall positive and negative buzz) for the brand jumped from 7.2 to 13.6 between October 23 and November 5 (+6.4) – but alas, it appears there is such a thing as bad publicity. The museum’’s struggles with the eco-protestors and the Yeezus rapper have dragged Impres-
Stephan Shakespeare
sion scores – which measure general positive and negative sentiment – down from 30.9 to 22.4 (-8.5), while Recommend scores saw a 10-point drop from 17.5 to 7.4 (-10.1). Perceptions of Madame Tussauds’ Quality also dipped from 23.3 to 18.7 (-4.6), and – summarising the rough time the museum has had lately – Index scores, the measure that tracks overall brand health, deteriorated from 15.7 to 11.2 (-4.5).
At a time when protestors are targeting museums and galleries all over Europe, there could be an argument for a little extra vigilance. And given Ye’s long history of provocative behaviour, creating a waxwork of him in the first place was perhaps always going to be a hostage to fortune for Madame Tussauds. But while the brand could potentially have predicted that a statue of the newly-minted King might be a target for green protestors, or that the rapper’s laundry list of past controversies would eventually cause a problem, it could have reasonably assumed that these things wouldn’t happen within days of each other. In any case, Madame Tussauds, while having nothing to do with the recent events in the news, may have run afoul of them anyway.
PUBLIC OPINION OF MADAME TUSSAUDS TAKES A HIT FOLLOWING YE STATUE REMOVAL AND ECO-PROTESTS YouGov BrandIndex: Impression and Recommend scores for Madame Tussauds (1 week moving average) Recommend
Impression
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YouGov Brandindex: 23 October 2022 - 5 November 2022
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Peter McCormack is a prominent bitcoin investor and podcast host, recently announcing his purchase of the English football club, Bedford FC and taking on the position of chairman. McCormack also hosts a bi-weekly podcast called ‘What Bitcoin Did’ in which he interviews leaders in Bitcoin, blockchain, and cryptocurrencies. His goal is to grow the football club stronger until it can be promoted to the prestigious premier league. To improve the club, McCormack is recruiting fellow Bitcoin investors and companies to contribute funds to attract better players and managers alike.
Jillian Godsil is an award-winning journalist, broadcaster and author in Web3. She is constantly educating the world about innovative blockchain projects, leaders in blockchain and showcasing the uses of the technology. She is passionate about the democratising impact of Web3 technology. She chairs, moderates and speaks at Web3 conferences all over the world. Most recently she was named in the Top 100 Women of the Future, a legacy project published by Global Village Publishing Inc, celebrating women leaders and trailblazers in web3 and the metaverse globally.
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Jonny was CEO for 20+ years of Premier Asset Management Plc, an asset management company quoted on the London Stock Exchange. His recent focus has been on the dynamics of financial innovation, advising organisations on how Blockchain and Digital Assets are being used commercially. He works closely with a number of professional firms, such as accountants and lawyers, advising their clients on corporate strategy and adoption of Blockchain technology and Digital Assets. Jonny spends hours of his time weekly to research and write on developments in the Blockchain and Digital Asset sectors. This analysis, called Digital Bytes, is used globally by a variety of professional advisors, corporate brokers, accountants, lawyers and corporations and forms the basis of the Digital Bytes show which is broadcast on Cyber.FM to its 4.6million listeners.
Loretta is a public policy influencer and globally recognised as an authority in digital asset regulation and blockchain technology. She has been working globally on digital asset regulation in Bermuda, Serbia, Vanuatu, Nigeria, Kenya, India, Lebanon, Philippines among others. She has been asked by the Commonwealth Secretariat to present on a common regulatory framework for digital assets for Commonwealth Ministers of Finance and Justice Ministers. She is a global influencer and expert in digital asset regulation.
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Jannah Patchay is an Originating Member and Policy Lead for the Digital Pound Foundation, launched in October 2021 to advocate for the introduction of a well-designed digital Pound and for an effective ecosystem for new forms of digital money in the UK. Jannah is also the founder of Markets Evolution, a consultancy specialising in financial markets innovation and regulatory strategy. Her passion lies in building the financial markets of the future, harnessing technologies to create new and innovative financial services and products that can promote wider social and environmental benefit, and greater access to financial services. She is also a member of the Whitechapel Think Tank a member of the steering committee for Global Blockchain Convergence, co-host of the Financial Markets Insights podcast, and writes on innovation for Best Execution magazine and other publications.
Indian-American serial entrepreneur and investor, Nikita found her passion in the crypto and blockchain space in 2017, after working for crypto giant, Huobi. This led her to launch Luna PR, an award winning public relations and marketing agency, which is HQ’d in Dubai, with offices in Miami and Singapore. Luna PR’s parent company, Luna Media Corporation, also houses a web3 venture capital, a foundation which aims to educate less-privileged girls in India, and Cointelegraph MENA. Nikita is also the host of CNBC Arabia’s first ever crypto show, On the Chain, targeting 50 million homes. Since entering the space, Nikita has travelled globally to speak at universities and conferences, which has tremendously impacted her growth, catching the attention of multiple worldwide government officials.
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BEST OF THE BROKERS
FTSE dragged down by Persimmon tumbling after house price alert
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ONDON’s FTSE 100 was yesterday pulled down by housebuilder Persimmon tumbling after it warned rising rates would hit its bottom line. The capital’s premier index edged 0.08 per cent higher to 7,306.14 points, while the domestically-focused mid-cap FTSE 250 index climbed 0,75 per cent to 18,697.89 points. Mortgage costs have ballooned this year, caused by a combination of the Bank of England hiking interest rates eight times in a row to three per cent to tame high inflation and banks passing on elevated UK debt rates pushed higher by former Prime Minister Liz Truss’ disastrous mini-budget roiling markets. Higher mortgage servicing costs have ignited an affordability crunch, resulting in prospective homebuyers abandoning purchases and existing
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homeowners facing a tight squeeze on their finances when they refinance. As a result, Persimmon said buyers close to grabbing the keys to their new home had ditched purchases and prices for their properties had dropped. Dean Finch, chief executive of Persimmon, said: “Rising interest rates and broader economic uncertainty are clearly impacting mortgage lending and customer behaviour and this is reflected in our recent weekly sales rates and forward sales position.” The company’s share price tumbled to second bottom on London’s FTSE 100, shedding over five per cent. Other house builders also fell as investor sentiment toward the sector soured after Persimmon’s results. Taylor Wimpey dropped 0.54 per cent. Retailers B&M Bargains and Ocado surged more than four per cent.
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Quarterly premiums of insurer Direct Line declined by 5.8 per cent to £807m, dragged by a slump in the motor sector. Overall premiums were down by 3.5 per cent, while motor policy volumes slumped 2.7 per cent as new business fell at the beginning of the third quarter. The insurer’s guidance for the full year is 98 per cent or moderately above, which slightly worse than analysts’ 97.6 per cent estimates.
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Despite shares tumbling yesterday, analysts at Peel Hunt have picked the numbers of Persimmon and awarded it an add recommendation after the housebuilding giant delivered “a resilient performance” in the third quarter. According to analysts, the business remains on track to deliver up to 15,000 homes this year, despite an increase in cancellation rates over the last month and a half.
Oil prices, which initially edged above $100 a barrel, soon found the air rather thin above that level, closing lower as the optimism over a possible China reopening giving way to the reality that any prospect of that was likely to be months away. The latest China trade data also pointed to a weak economy. MICHAEL HEWSON, CMC MARKETS
CITY MOVES WHO’S SWITCHING JOBS REDMILL SOLUTIONS
The incoming lead is set to spearhead Redmill’s commercial operations, including revenue generation, business development and product marketing. “Her wealth of experience speaks for itself, and her energy and enthusiasm for everything we do is infectious,” founder and chairman Hasan Arik said. “Shirlene will play a vital part in delivering our products to an ever-growing number of global brands.”
Media planning and data management solutions firm Redmill Solutions has appointed a new global head of commercial, as the firm seeks to expand into new markets. Shirlene Chandrapal, who brings more than two decades of experience to the firm, joins from the IWSR, where she served as the lead for global strategic sales.
KNIGHT FRANK
Property advisor Knight Frank has posted a new partner to its central London retail team. Oliver Green, who has over 15 years’ experience in the
central London retail sector, joins Knight Frank from Savills where he was a director in the retail team. Green has advised on a string of retail and lifestyle destinations across the capital, including the Burlington Arcade in Mayfair. “He has a wealth of experience and impressive track record working with developers and investors on some of London’s most iconic retail properties,” partner in the central London retail team, Josh Braid, said.
CUSHMAN & WAKEFIELD
Real estate services firm Cushman & Wakefield has bolstered its London office with a fresh appointment to
lead its sustainability services division across Europe, the Middle East and Africa (EMEA). Darren Berman, as the new head of sustainability services EMEA at the firm, will help support the real estate sector in transitioning to net zero. Berman, who joins from renewable energy startup Naked Energy, brings experience from across CBRE and JLL to the new role. “Darren’s depth of experience in the sector, of building up teams, and guiding clients through complex sustainability strategies will play a vital role in realising the opportunities ahead,” head of occupier services EMEA, James Maddock, said.
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Money languishing in savings accounts can be put to better use this ISA season, as Suzie Neuwirth reports
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at a 30ITH UK inflation surging year high due to supply energy costs and for inchain issues, the casesaving, vesting, rather than been greater. your money has never are still hovering Interest rates low, meaning that around an all-timesavings account or a money held in eroded in cash ISA will be significantly real terms. ISA season, people As we head into their tax-free aluse to still looking to 5 April will need lowance before of inflation eroding weigh up the risk the risk of investtheir savings versusasset classes such as in ing their money or peer-to-peer loans. stocks and shares tax year, the For the current 2021/22 ISA can save in an inmaximum you not pay tax on any is £20,000. You do gains accrued within terest or capital an ISA wrapper. exempt from payThis means you are which kicks in on tax, ing capital gains than £12,300 from any profit of more an investment. into an ISA by You must put moneyfor it to count toyear the end of the tax allowance. Any unwards this year’s not roll over into used allowance doesuse it or lose it! so the next tax year, of opportunities on With a plethora can be overwhelmoffer, the ISA market the best places ing, so we have analysedmoney. to put your hard-earned
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of the fund as the “You should think in April, investment and indiwill hit six per centbe looking main course of your KING plates – slightly more better, inflation CASH IS NO LONGER that investors should fence waiting for vidual shares as side more lifted the base rate to sitting on the be the time to lock in meaning above six per cent to avoid risky, but you may consider them The Bank of England of 0.1 per cent to Society, according for returns low but now might Historic stock mar- fun and interesting to follow. Coventry Building from an historic a eroding their savings. December, and raised data as of 25 January from Moneyfacts. that best rate.” sure you first have that this can be 0.25 per cent last “You should make most average rates this year to 0.5 ket performance suggests is riskand then buy “Last year, we saw across the savings it again on 3 February although no investment core plate of investmentsthe edge.” EQUITIES around go to record lows out of the ISA wrap- EYEING UP losing savers money in achieved, per cent. individual shares ISAs or in comparison to that you’ll usually people in a free. example, if you invested in an back With cash However, this pales 30-year high of 5.4 market, within It’s worth noting slowly climbing fi- real terms, it is advisable for fees with “For a the perper, but they are position to confund that tracks inflation, which hit to pay a few different 2021 and is presays Rachel Springall, comfortable financial ISAs, which give index trackerthe stock market, on a his- have s ISAs. Th per cent in Decemberthan six per cent up again,” at Moneyfacts. in- formance of sider stocks and shares nance expert dicted to rise to more2022. steady process chance of outperforming of in them a good “It is a slow and during the course left languishing though. There was a base rate rise in Therefore, any money decrease in value in cash ISAs will
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A PROMINENT former Greenpeace activist and now Stanford University fellow has said “panic” over climate change is blocking debate over the move to a greener future. Danish campaigner Bjorn Lomborg writes in City A.M. today that “fifty years of panic clearly haven’t solved climate change” and that a smarter approach which “focuses on realistic solutions such as adaptation and innovation” is needed. Lomborg’s warning comes the week after McKinsey calculated the cost of moving to net zero by 2050 across the world at a cool $9 trillion a year. The head of the Copenhagen Consensus think-tank called for solutions that emphasise the funding of green energy projects rather than JACK BARNETT“showering politicians to the governmen subsidies over expensive vanity t’s spending bill ECONOMIC by projects.”growth is vital if state the end of the decade. O’Connell said spending state spending at is not The report comes tobecome scale envisioned City has a hub reach “unsustain the as a raft of able” The by - ing pledges of levels, green experts financewarned in recent set out at the spend- was “unsustainable” the new report today. A report last two and said growing budgets have already from the ranking years. A global by Resoludivision Rene Haas taking over as chief think tank put the size of the economy was crucial. tion Foundation the state on published analysts at Z/Yen put thetoday executive from Arm-veteran Simon Segar. Pursuing a strategy vealed re- level since course to reach its largest tained of achieving susa persistentl at the top of the global Softbank boss Masayoshi Son said: y higher the 1970s. economic growth NHS bill and capital the The planned 1.25 to tree enormous for the first time 2021. “Rene is the right leader to accelerate cost of in transitionpercentage point enue for the Treasury raise reving to net zero national hike, is more will swell the desirable The UK government is size Arm’s growth as the company starts the British of and dividend on top of corporation nances than balancing the public state under to historic fire for making preparations to re-enter the fitax hikes and the through proportionsincreasingly further in the to ing of income freez- perts said. tax hikes, excoming lay out the costs of public markets.” years. tax Thefailing costtransition raise the tax burdenthresholds, will of caringto “Avoiding the zero’ ageSon added that Softbank was aiming to for‘net Britain’s ing population level since the 1950s. to the heaviest and relative a period of weak growth will rows amid ongoing about the take Arm public before the end of the primarily economic drive a ramping up in John O’Connell, governmen cial,” the Resolution decline is cruof energy and the rollout financial year in March 2023. t spending chief executive to theprice tune Foundation said, the Taxpayers’ Alliance, of £76bn of adding that electric vehicle facilities. a year by the a protracted period of thisofdecade, told City A.M. taking the size end that “ministers must refuse sluggishness after CONTINUED ON PAGE 3 of of the state to the same the the tired has LOMBORG:level PAGEas12Germany’s argument that spending cannot wiped £200bn a financial crisis before year off the govthe Covid-19 crisis. reined in. be ernment’s spending Ramping up funding “Instead, they should Dan Tomlinson war chest. to reach zero targets will go for growth add £14bn each net by backing business Foundation said of the Resolution and cutting year taxes.” the coming national insurance increase was “small compared to tax hikes to come. fry”
BRIT CHIP FIRM TO COME UNDER POLITICAL PRESSURE TO LIST IN LONDON NOT NEW YORK AFTER REGULATORY HURDLES END NVIDIA TAKEOVER PLAN LED BY NOMISTS POL firm listed in the capital. Politicians are T reportedly also wooing other soon-toTODAY AS ECO YEAR – AT LEAS float global firms. ERS SET TO HIKE News of the float came after a bumper E TO COME THIS BANK RATESETT takeover bid from US giant Nvidia was DICT THREE MOR PRE finally kiboshed, with a combination of A.M. 2022, in CITY three times competition watchdog interest and lift rates a further Bank has raised
time the marking the first four times in a calendar borrowing costs– that’s the consensus will this year since year since 2004 A.M.’s poll of economists. cycle THE BANK of England forecast of City fastest rate hike a former rate setter embark on the tame rampant inflation in e Andrew Sentance, adviser to Cambridg 2004 in a bid to at its meeting of rate “three and now senior City said he expects the UK – starting Econometrics, this year” after today’s reveals an exclusive setters today – economists. further rate risesrates to 1.25 per cent by 18 A.M. poll of top ck rate hike in meeting, taking year. The first back-to-ba today and will the of the end certainty agree with years is a near intent to rapidly shift Several top analysts Sachs and Capital signal the Bank’s rate g the British Sentance. Goldman supportin pricing in four from to both policy the pandemic Economics are t 2022. economy through inflation. to hikes throughou stamping out edle Street is set Threadne After today,
JACK BARNETT
Windfall tax plans rubbished by economists after oil giant’s losses last year London must become tech payout claim lodged
NICHOLAS EARL North Sea gas impact. The Labour Party have been pushing ECONOMISTS and BP’s boss rejected for a one-off levy on energy firms calls yesterday for a windfall tax on amid spiking household to costs. will be forced energy firms after the energy giant The auditor But Looney said at “the UK needs more which today, claim le for the be That’s announced healthy profits. gas, not less gas,case right now. will recognise been responsib of the for Bernard KPMG had details The British firm’s chief going to require more ’s accounts courtinvestment, not point the Carillion through the itself auditing public Looney said it earning would be misguided made to less investment.” two decades, work.and reducesystem. Calls for a tax raid almostlimit firmincreased in itsfor ability to invest its audit nds thehave s £29m in fees A.M. understa against the OR’s the provision City increased the itself KPMG has to all of plans to defend declined to comment. up to respond it has saved faces, from £92m claim. The firm nds. claims it currently understa A.M. to £144m, City
billion-pound gs around KPMG with Carillion collapse han LOUIS GOSS
pay more be forced to KPMG could damages for its role in giant than £1bn in construction auditing collapsed a Carillion. firm has received The Big Four the Official Receiver legal claim from
ent officer (OR) – a UK governm g Carillion’s for managin responsible requesting the firm pays News’ liquidation – of £1bn, Sky last damages in excess reported late Mark Kleinman by the night. being driven ’s The claim is duty to Carillion OR’s statutory
NE PLOTS SES P3 VODAFO H DEAL COLLAP INSIDE PLAYTEC
national security concerns too much of a hurdle to overcome. Softbank pushed through a management shakeup at Arm yesterday, with president of the firm’s IP products
recovery of maximise the creditors, to any losses. put the OR in The High Court ng Carillion in collapse charge of liquidati following the January 2018, lion-pound building go of the multi-bil saw the firm contractor, which debt worth £7bn. bankrupt with
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P24 OLYMPICS PREVIEW LIFESTYLE P22
BP reported a £9.5bn profit yesterday, its best annual result since 2013
They lost billions in 2020, when the the week since Shell also revealed pandemic caused prices to plunge. chunky profits. They regained some of this in 2021-22, BP lost £4.2bn in 2020 amidst a when economic activity restarted.” collapse in global demand for oil, Michael Hewson, chief market similarly to most oil majors. CHARLIE CONCHIE analyst at CMC Markets, described the Speaking to City A.M., Andy Mayer Arm’s Japanese from the Institute of Economic AffairsTECH calls for a tax as “predictable”. leaders said on Tuesday owner Softbank said: “Fossil fuel energy companies governmen have called on the it was looking take the chipmaker to t to shake up UKPAGE 5 RESULTS AND ANALYSIS: have not enjoyed ‘windfall’ profits. listings rules after Nasdaq exchange public on the British chipmaker the owner of bid by American after a takeover rival Nvidia eyeing up a New Arm said it was collapsed. York floatation for one of Britain’s Russ Shaw, founder most exciting companies. of Tech London Advocates the move showed , told City A.M. “there is a lot
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float capital as Arm plan s to more work that to be done” to needs tempt tech firms into listing in the capital. “If we could get Arm to list in the UK that would be a significant win,”very he said. “But this is
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going to be a hard slog over the coming years.” Janine Hirt, boss of UK fintech body Innovate Finance, said the government needs to push ahead with
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latest announce its OFGEM will consumer price update to the millions of cap today, with bracing for a households hike in energy painful price bills this spring. at Cornwall Energy analysts the cap, warned Insight have what suppliers can which limits tariffs, could year. charge for default per £2,000 rise to almost the energy Jonathan Brearley, ly chief, previous watchdog’s mechanism suggested the soaring should reflect wholesale costs. is expected to Downing St loan scheme roll out a £6bn £200 a g this week, providin household to rebate for every from rising soften the blow prices. taxpayers This will involve iting loans effectively underwr . c to suppliers for Economi The Institute City destination, but CHARLIE CONCHIE York as thetold favoured Mayer Affairs’ Andy will only political have indicated the plansinsiders that the A.M. relief for BRITISH chipmaker the government is keen to see the firm go per cent Arm is set to be provide partial come “at or above four ofaround a charm offensive to encourage in London. and will ldspublic will “remain at subject for househo of end ofto2022,” higher bills list intarget. London rather than New York. source said “it shouldn't be expense AofWhitehall through to the itinflation from the Institute years five Julian Jessop, is betting the Bank will three to Japanese owner Softbankthe said may abesurprise that ministers would like a the Bank’s Arm’s today, rise double rate what a in Economic Affairs, at one Monetary Policy In preparationsthe yesterday it was making to loanBritish success story like Arm to float in is repaid.” before. Markets are pricing out as caught whether been defy recent historymeeting this year and float the Cambridge-based chipmakerIt is alsoLondon”, a Treasury spokesperson unclearwhile but they have Bank expectations in the defied fallpush . will the Committee (MPC) r, after a $40bn (£29.5bn) takeover bid from said it would ahead with reforms to points, e prices Novembe energy d, triggering be the lift rates 0.5 percentag with ns to amid US giantcompariso Nvidia collapsed listing rules toenergy make hawkish tilt will and left rates unchange near future, capthe capital more and The Bank’s abrupt g dampening warning regulatory pressures. attractive to the major firms. volatility in markets trade body Carney’s Mark in October. economy driven by it prioritisin againlocal Softbank said it was.’eyeing up New MP said itto was “vital” the former Governor ‘unreliable boyfriend rises across the could rise Arm’s . an for suppliers rampant price g to the pandemic reputation as The inability e costs to rate and inflation instead of respondin by City A.M. wholesal higher interest agitate Chancellor Rishi A polled on ts has pass cap, 6.5 to the may Most economis peak at between environment will customers, due estimates a one and is going bust. think inflation per cent in April Sunak. The Treasury in both would led to dozens per cent and seven e point increase soon. finances. percentag anytime to the public unlikely to cool developed markets deal a £23bn blow James Smith, said the cost of living economist at ING,
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list in New York changes to the UK’s listings regime to make it more attractive for tech firms. The governmen consulting with t has been recent weeks as tech bosses in it looks to overhaul the listings system and persuade more tech firms into going public in London.
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OPINION
WEDNESDAY 9 NOVEMBER 2022
CITYAM.COM
OPINION EDITED BY SASCHA O’SULLIVAN
Legal but harmful: The Online Safety stalemate is still stuck in the trenches Leah Montebello
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HEN the government first announced the “legal but harmful” requirement in the online safety bill it wasn’t quite clear who was most offended. From the free speech activists fearful of overzealous regulation, to the tech entrepreneurs wary of burdensome requirements and the human rights lawyers cautious of government overreach, the screams of dissent came from all quarters. The draft bill envisaged a world in which big tech defines clear terms and conditions for how large companies would address defined “priority categories” for adult online safety, including ‘disinformation’ and ‘hate speech’. The media regulator Ofcom would then hold Silicon Valley titans to account to meet these conditions and set further priorities. In simple terms, this means a post could be removed from Facebook under rules defined by Meta itself, with extra guidance from the secretary of state. But with a new government comes a new direction, and the new DCMS head Michelle Donelan has already said changes are likely to be made. She told Times Radio that her department needs to “make sure we get the balance right” when it comes to free speech, alluding to an expected water-
The Online Safety Bill was designed to make the UK ‘the safest place in the world to be online’ ing down of the controversial provision. Ever since the requirement was first introduced, the concern was that there were a number of topics that could be deemed harmful, and therefore be censored by big tech. Where was the line in the sand? Who actually knew how to draw it? Certainly few trusted Nadine Dorries to skilfully use her crayons with nuance. And the bill would have given whoever sat at the helm of DCMS immense power to direct Ofcom to change codes of practice “for reasons of public policy” and set overarching priorities. For many, it looked like a way to turn the watchdog into a hotbed for the culture wars.
Even former head of child safety online policy at NSPCC turned online safety campaigner Andy Burrows concedes that this was a “legitimate concern” for free speech activists, telling
If someone is kicked off of Facebook, it will be a recipe for political backlash
City A.M. that he would like to see the secretary of state’s powers “trimmed back further” in amendments. But Burrows is of the view that any uturn from legal but harmful would be a “retrograde step” for the government, and “picking up the ball and going home”. In fact, he said the harms defined within the bill are about protecting free expression rather than hindering it, providing transparency of terms and conditions that can be held accountable. The campaigner told City A.M. that the provision was even more necessary in a world where censorship for some social media was now at the
Sunak’s flexibility has been curtailed by our undue reverence for the Bank of England
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ISHI Sunak will deliver an updated Autumn Statement next week, after Liz Truss’ so-called “mini-budget” triggered her demise. His freedom for manoeuvre has been sharply contained by the new found reverence being accorded to the Bank of England and the Office for Budget Responsibility. The Bank of England has forecast a long recession, which could last two years. A statement treated, unquestioningly, as gospel despite the variety of failures at Threadneedle Street. The performance of the Bank of England has left a great deal to be desired. Long after any potential threats from the financial crisis of the late 2000s had worked their way through the system, the Bank continued with its incredibly loose monetary policy of quantitative easing with near-zero interest rates. Asset prices and, eventually, the prices of everyday goods and services soared. The Bank missed the early warning signs that the rise in inflation – even be-
Paul Ormerod
fore the energy price surge – was much more than a mere temporary blip. And now it’s tipped over 10 per cent, with pensions and welfare payments set to rise with it, at the hefty cost of £11bn to the Exchequer. Incredibly, the governor and his senior team have managed to escape any significant criticism, with all the blame being levelled at Liz Truss. It’s not to say the uncertainty of the Truss era did not have its repercussions, but Bailey and his ilk have slipped under the radar. At the same time, we have also heaped massive importance on the forecasts published by the Office for
Budget Responsibility (OBR). But the plain fact is there is substantial room for error in any particular economic forecast, even just one year ahead, let alone the longer-term horizons we often look to in projections. This has always been the case, but where there is significant geopolitical uncertainty over many of the causes of our woes - such as energy prices and their link to the war in Ukraine - this becomes even more stark. The Survey of Professional Forecasters (SPF), administered by the Federal Reserve Bank of Philadelphia, has the longest and best maintained database with which to assess the accuracy of economic forecasts. It pertains, mostly, to the US, but the track record elsewhere in the West appears roughly on par. The SPF data, updated quarterly, goes back to 1968. We can compare the average prediction for one year ahead made by a wide range of forecasters, both public and private sector and using a variety of models, and what actually happened. The good news for soothsaying econo-
mists is that over the 1968-2022 period, the economic projections were on average correct. But the good news comes to an abrupt end. The correlation over time between the one year ahead GDP growth forecasts and the actual data is zero. What happens is simply that the errors, which can be large, cancel each other out. But any individual forecast is more likely to be wrong than it is to be correct. Despite advances in the statistical techniques used to build models and, some would claim, developments in macroeconomic theory, there is no evidence that the forecasts are becoming more accurate. Neither does any particular group or approach have a decisive advantage over any other. Of course, forecasts must be made. But they should be treated not just with a pinch but with a whole tablespoon full of salt. £ Paul Ormerod is an author and economist at Volterra LLP
mercy of “Elon Musk’s whims”. However, executive director at the Tony Blair Institute for Global Change Sam Sharps told City A.M. the reality of this transparency was that it puts massive pressure on the shoulders of Ofcom – an independent regulator that has already bitten off more than it can chew. If the bill is passed, the regulator will be swimming in “unchartered territory”, Sharps said, where if someone is kicked off of Facebook, it suddenly becomes a problem for both Ofcom and the culture secretary - a certain recipe for political backlash. On top of this, and as Musk’s takeover demonstrates, a huge amount has changed since the draft bill was first introduced in May. Not only have we seen three prime ministers go in and out of the door of Number 10, but the big tech landscape has also changed dramatically. The top seven tech firms have lost an estimated $3tn in the year to date, triggering job cuts left right and centre, and the advertising landscape making each quarter more painful than the last for the likes of Google, Meta and Twitter. The current online safety bill framework is built on what the head of public policy at the IEA Matthew Lesh called a “false hope”, where the assumption is that big tech firms, as well as smaller players like Snap and Pinterest, had more than enough resources to go around. The harsh reality is perhaps that the rejigging of the online safety bill needs to go further than legal but harmful, and open itself up to the idea that Silicon Valley’s pockets may not be as deep as we first thought.
STEERING OFF THE ROAD Elon Musk, the new owner of Twitter, has faced criticism on all sides. At the same time as the electric car giant was forced to recall 40,000 cars over a steering fault, Musk couldn’t give advertisers a clear steer over Twitter users, claiming they were at an all time high
WEDNESDAY 9 NOVEMBER 2022
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LETTERS TO THE EDITOR Giving older staff a leg up
Ageist hiring practises, with a preference for “young blood” and skills over experience, have also discouraged this older cohort from seeking work. Employers need to appreciate the fact that many older employees want to continue working and empower them to do so. Designing career progression into roles is one way to achieve this. At the recruitment stage, equal weighting should be given to skills and experience so older candidates who may need training are not unfairly discounted. There must also be actions taken to affect cultural change that stamps out ageism, such as including age in workplace diversity initiatives and age-diverse projects. We have an ageing population and workforce – let’s embrace this fact to combat inactivity and help Britain to grow. Steve Butler
[Re: UK unemployment falls to 50 year-low amid jobs market exodus, October 11] Economic inactivity is a growing threat to our economy. As the Centre for Ageing Better noted, Covid-19 heralded an “unprecedented number of people aged 50-64…mov(ing) out of work”, electing to live on their savings instead. If we want to solve this inactivity, relax the pressure on our labour market, and therefore ease inflationary pressures, we should consider ways to make staying in work attractive for older staff. Historically, we have not done enough in this area. Three out of four over-50s are not offered promotions, as their career ambitions are treated as having less importance.
PETROL HEADS BREAKFAST Price of fuel starts to fall after weeks of rises
EXPLAINER-IN-BRIEF: A RETURN TO IDENTITY CARDS... ON THE CARDS? In 2006, Tony Blair brought in legislation for national identity cards, partially in a bid to crack down on claims of welfare scam. The policy met fierce opposition on the Conservative benches, with Boris Johnson once promising he would “eat an ID card”. It was subsequently scrapped under the David Cameron-Nick Clegg coalition. But the suggestion has been brought back on to the centre stage. Blair has remained a proponent of ID cards, with his research institute publishing reports in favour of them. And
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now the parliamentary Labour party is considering them in a bid to stop illegal migrants finding work on the black market. Stephen Kinnock, the shadow immigration minister said the policy was being looked at “very, very carefully”. Some have suggested the availability of illegal work lures more people to travel to our shores over the Channel. It might be that in an era after vaccine passes, there is much less opposition. But they still need to be proven effective before justifying the cost.
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We do need serious mental health policy change, but we also need a change of heart Daniel Sleat
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HIS week I shaved off my beard to leave a resplendent moustache. I haven’t done Movember before but this year, I wanted to play a part. Last year, 75 per cent of suicides were men. I’ve always been cautious about campaigning along identity lines, but there is clearly a specific issue with men’s mental health. Yes, we need a change in national mental health policy, but without a change of heart about how open men are willing to be about their mental health it won’t help. Eight years ago I had a breakdown, as I struggled with anxiety and depression. I was off work for a couple of months and only through the help of cognitive behavioural therapy and Prozac was I able to get back to work. I’ve been mostly well since then, but continue to take my medication. One of the biggest tools has been my willingness to say when I am not doing well and ask for the help I need. There are plenty of things I’m not good at, but
With the best will in the world, the right policies aren’t going to make a dent in tackling the scale
At the end of October, the price of petrol was up at 166.54p, but it has now fallen back by 1p to 165p. It will be a relief for drivers who had to stomach record prices of 192p a year earlier this year.
OPINION
I’ve never been particularly concerned about showing vulnerability. Most men, however, are less willing. According to research by the Priory Group, a mental health provider, 40 per cent of men have never spoken about their mental health. Almost 30 per cent of these are because they have been “too embarrassed” to do so. Of those polled, 40 per cent said it would take thoughts of self-harm or suicide for them to seek help. Last year 4,129 men committed suicide, 75 per cent of the total. Let me be clear, the right suicide rate, regardless of gender, is zero. But there is a specific issue with male rates being consistently and disproportionately high. We can’t get to zero without addressing the problem as we find it. So, what do we do?
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Movember raises money for men’s mental health It’s clear that wider policy change is needed. There are lots of things we should consider: minimum waits for mental health care in line with urgent physical health referrals, making better use of technology to provide faster support, offering a wider range of support from the moment someone seeks help, so medication is given as part of wider support, not as a first and sole response. Around 1 in 4 people in the UK experience a mental health problem each year. We can’t tackle this without the right national policy framework in place. But that’s not enough. With the best will in the world, the right policies aren’t going to make a dent in tackling the scale of male mental health problems. What is as urgent as policy change, is a change of heart. The number of men struggling in silence with mental health issues and the rate of male suicides will not fall unless the mindset behind it changes. It’s not an easy change, but it is an important change. We need to shift the debate around mental health to ensure men
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are better able to show vulnerability. This is urgent, must be led by men and it is a process that requires courage. It must include men of all stripes. I'm a self-confessed Buddhist Blairite, so maybe it makes it easier for me to talk. I live in London, which as a result of its size, creates a wealth of experiences. A change in attitude has to go to every man and boy across the country. It requires a core change in belief, that it is not strong but weak to hide vulnerability. It isn’t strong, but weak, to let down those around you by not asking for help. It takes real courage to ask for help. Real strength is being open. So this winter, as men grow their moustaches and the debate around mental health returns, I’m asking male readers to take responsibility. However you feel, be open. Ask other men how they are. Create the space for vulnerability. We can’t save lives without talking about them. £ Daniel Sleat is Director of Research at the Tony Blair Institute
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18
LIFE&STYLE
CITYAM.COM
WEDNESDAY 9 NOVEMBER 2022
FOOD&DRINK
REVIEW: THE CONNAUGHT GRILL IS ACE
piles of chilli aioli and avocado. We trusted the sommelier to further decorate our booth with glasses of something fortified, and marched onwards towards the mains. A decadent 100 grams of rare kobe steak was spot on. These cows are famously – and probably apocryphally – massaged and played classical music, and these 50psized nuggets of beef had all the richness of a classical symphony. An organic Welsh rack of lamb felt like the wrong accompaniment to kobe, given it was another bite-sized portion at 250 grams, something a more eagleeyed waiter may have picked up. The lamb was everything you’d hope for, cooked on a light griddle giving it a slight crunch and a soft centre, but with one piece each, it looked lost on its expansive white plate. A black truffle potato rosti was a return to form, and a plate of courgette made us feel less guilty about all the hedonism. Not for long though: dessert wine arrived alongside a neat mound of sticky toffee pudding and a collection of weighty slabs of British cheese. This is a different sort of Grill, doing away with classic bistro-style dining and introducing something more modern, in terms of both the aesthetics and the atmosphere. The Connaught can pull this sort of thing off, their diners trusting them to successfully experiment. It’s probably not one for first-time Connaught goers, however: those people should head to the Michelinstarred Jean-Georges or Hélène Darroze restaurants for the most obviously “Connaught” experience. But this hotel is the sort of place every Londoner should spend at least two nights a year. So for those needing an excuse to return – and no one should need an excuse – The Grill awaits.
A London institution reborn, it’s your duty to visit the beautiful Connaught Grill, says Adam Bloodworth
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here are lovely five-star London hotels, and then there are the ones run by The Maybourne Group. That’s the company behind The Corinthia, Claridge’s and The Connaught, the eagles of the hotel world that fly higher than all the rest. In Mayfair, all the buildings look gorgeous, but propping up the corner of Adam’s Row and Carlos Place, The Connaught is impossibly handsome. Gold lettering above the wooden doors looks so old and intricate enough to predate the dinosaurs, while a curvaceous water feature in polished grey stone opposite the frontage hauls the building back into the modern day. The lobby features a heavy-set Gothic staircase that takes itself so seriously that it could have come from the set of the Rocky Horror Picture Show; Patrick Stewart was laughing there with a friend last time I visited. In short, The Connaught is a place where proper
grown-ups go. So I was excited to book into the new Grill, which had a stilted pandemic opening but is now finding its feet. The Grill had been a mainstay in The Connaught in the middle of last century, when patrons including Ian Fleming indulged in steak and burgundy as they tossed around James Bond scripts with director Terence Young. The Grill closed in 2000 but this new contemporary iteration pays homage to its forefather. A stylish original silver service trolley from the 1950s sits patiently in the corner awaiting the weekend roast service, but I was here for a midweek dinner. The Connaught’s Grill has always favoured discretion and the new layout offers this for the modern day diner: cosy, secluded booths barely allow you to see another diner thanks to high walls and the restaurant’s long, thin layout. I’d pictured something more like a
grand, convivial dining room, but this reinvention is equally gorgeous in its own way. The unstuffy, minimalist design is at its best in the polished woodwork of the banquette seating, which is so supple you feel as if you’re forever sinking further into them. Quite some feat over a three-hour dinner. We begin with melt-in-the-mouth
beef tartare with wispy, decorative strips of potato to mop up the fluids, and an artfully-designed scotch egg. Sliced open at the top like a dippy egg, it conjures the nostalgic joy of childhood breakfasts. A colourful plate of beetroot carpaccio looks like a Cubist painting; a dollop of this here, that there, all decorated with colourful
ASK THE EXPERT: LONDON DONE PROPERLY
Trivet co-owner Jonny Lake on where to eat in the capital on your day off, from The Counter to A Wong t ENDO AT THE ROTUNDA
t A. WONG
I have known Kazutoshi Endo for many years and I have always been in awe of what he does. Endo stops at nothing to find the best ingredients for his restaurant and this quickly becomes apparent when you eat at The Rotunda. After only two or three dishes of the multi-course menu you know you are somewhere special. I love the way he plays with textures and temperatures throughout his menu to keep you wanting more. Yes it’s our own restaurant but when Isa and I envisioned Trivet, the overriding principle was that it had to be somewhere we wanted to go. ‘Nordic efficiency with the warmth of the Mediterranean and a dose of fun’ was what we were after and I think we have achieved that. Opening in November 2019 our timing couldn’t have been worse. Along with the rest of the hospitality industry we have been through hell these last few years but with the amazing support of our local and regular guests, as well as our staff, I can confidently say we are a better restaurant now than we have ever been.
THE CONNAUGHT PÂTISSERIE
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TRIVET
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THE COUNTER
Kemal Demirasil is a Turkish chef who I originally met through my business partner Isa Bal. He recently opened The Counter, his first London restaurant, in Notting Hill. All the cooking is based around the charcoal grill and is inspired by the Southeastern Anatolia region of Turkey. We took all our staff from Trivet there for lunch a few Sundays ago and it was such a good time. Kemal and his small team cooked their hearts out for us and we didn’t want to leave. Kemal keeps the dishes simple but the flavours are big. It’s one of those places that’s so welcoming, I’m sure I’ll be going back soon.
Andrew’s knowledge of regional Chinese cuisine is endless. I have always admired his continued pursuit of knowledge of Chinese cooking techniques and ingredients. I have eaten at A. Wong many times but I think my favourite experience was a few years ago when I happened to be in the area and dropped in on the off chance they would have room for one for lunch. Sitting at the counter facing the kitchen, I was treated to an incredible series of dim sum and small dishes. The flavours were intense and only equalled by the amount of background information that Andrew gave me for each dish. What Andrew and his wife Nathalie have created at A. Wong is truly special and I definitely need to return soon.
Our sous chef at Trivet, Lukáš Juhaniak, is a serious connoisseur of the art of pastry and spends a lot of his time off visiting different pâtisseries in London and abroad. Although there are a now quite a few top level shops in the capital, his ultimate recommendation to me is always The Connaught Pâtisserie. Their selection changes often, their petits gâteaux are generous and it has the feel of a true Parisian pâtisserie.
CITYAM.COM
WEDNESDAY 9 NOVEMBER 2022
PLAT DU JOUR: KALE PASTA BY MANTECA’S CHRIS LEACH A perfect winter warmer, this light pasta dish is easy to make and sure to impress your dinner guests with its vibrant colours
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his is a great dish for the colder months and when cavolo nero is in season. It’s a vibrant and bright dish that can be a welcome relief from the dreary weather that winter brings. I love how balanced this dish is – the iron flavour of the kale is offset by the sharp lemon juice, confit garlic oil and the umami flavour of the parmesan. It’s an easy sauce to make in big batches but be careful when you add it back to the heat as kale has a nasty habit of turning brown.
RIGATONI WITH KALE SAUCE FOR THE KALE SAUCE
£ 400g kale(cavolo nero, green curly kale or Russian kale) £ 1 garlic clove, crushed £ 100g olive oil
METHOD
£ Wash the kale and pick the leaves
from the stalks, keeping the stalks to one side. £ Put a large pot of water on to boil and season generously with salt. £ Put the garlic in a small pan with the olive oil and heat very gently until the garlic begins to soften. Carefully pick out the garlic and discard (or mash up and fold into mayonnaise for another use) £ Blanch the kale stalks for 2 minutes then add all the leaves and blanch until soft, around 1-2 minutes. £ Drain the kale and blend with the garlic oil into a smooth paste. The sauce can be made a day ahead.
LIFE&STYLE
19
EDITOR’S PICK
RAFAEL CAGALI’S ELIS
The Bethnal Green Town hall has played host to some wonderful restaurants over the last decade, from nuno Mendes’ Viajante to Lee Westcott’s Typing Room and now Rafael Cagali’s superlative two Michelin star Da Terra. Now Cagali has opened a second restaurant in the building, Elis, a more informal dining experience named after his mother’s Sao Paolo jazz bar. The town hall is a beautiful old building and this is an elegant dining space, with the original wood features allowed to do the heavy-lifting, notwithstanding a slightly bizarre obsession with hanging lamps, dozens of which bear down ominously from the lofty ceiling. Cagali has described Elis as “more rustic” than Da Terra, with the menu consisting of small sharing plates, such is the zeitgeist. Those rusty on their Portuguese may wish to pre-load Google Translate onto their iPhone (other handsets are available) given the menu is unforgivingly non-Anglicised. Rustic is certainly the word – the smallplates menu is filled with produce-first dishes: cured fish, porchetta, smoked meats, cheeses, salads, with the occasional cooked snack such as bolinhos de bacalhau, a Brazilian cod croquette with slightly less crunch than its Spanish cousin. The mains are slightly more involved but still tend to focus on a single cut of meat: monkfish tail on a bed of haricot beans; a picanha skewer served with kale and palm heart. Also included are a very-nice-indeed crab linguini and a short rib rigatoni, Cagali being of Italian as well as Brazilian heritage. It’s all very nice, as we have come to expect of Cagali, a chef whose star has now well and truly risen. But Elis feels a little hamstrung by the soaring cost of ingredients – monkfish doesn’t come cheap but £36 a plate still hurts, as does £32 for the picanha. Coupled with people’s tendency to over-order sharing plates, this makes for a rustic meal with finedining prices. Given how much I love Da Terra, I can’t help thinking that if you’re willing to push the boat out his far, perhaps you should just shove it all the way and spend the £120-plus-wine for the tasting menu downstairs, where you’ll get the By Steve Dinneen full Cagali experience.
FOR THE REST
£ 400g rigatoni £ 40g butter £ Kale sauce £ 1 lemon £ A pinch of chilli flakes £ Black pepper to taste £ Grated parmesan
METHOD
£ Cook the pasta to your liking. When ready, drain it, reserving some of the pasta water. £ In a pan, heat the butter and add the kale sauce, then toss the pasta, adding a little pasta water if necessary. Add a squeeze of lemon and seasoning to taste. £ When the pasta is sauced, divide it among four plates and sprinkle with dried chilli flakes, a few cracks of black pepper and grate some parmesan to finish.
FOOD NEWS BY ROSIE GOODALL £ INTRODUCING... SALTIE GIRL New restaurant Saltie Girl (pictured right) opened in Mayfair yesterday, combining the talents of celebrated restaurateurs Kathy Sidell and Varun Talreja. The original Boston restaurant is known for its oysters, lobster, caviar and tinned fish specialities. Saltie Girl promises to bring a fresh approach to seafood, offering an elegant dining experience over two floors with private dining spaces, outdoor seating and a diverse wine list. £ TEQUILA FOR BREAKFAST Renowned Notting Hill Mexican-Japanese fusion restaurant Los Mochis is to introduce a new breakfast menu on 14 November, available every day from 8am until late. It will be a celebration of traditional Mexican flavours served in tacos, chilaquiles, pancakes and huevos. The weekend menu will also
tempt diners with a selection of brunch-style tequila cocktails to add to the authentic Mexican dining experience. £ LEARN TO COOK LIKE A PRO With Christmas fast approaching, Oma Kitchen has released four new cooking courses, including recipes from Korea, Malaysia, Mexico and North India. Also included in the price is access to the brand’s stylish magazine and tutorials from chefs such as Rohit Ghai and Norman Musa. Experiment with creating unusual dishes from around the world and impress your friends this festive season. Prices start from £60. £ WINTER FOOD SCANDI STYLE This winter, Michelin star chef Niklas Ekstedt welcomes a new a la carte menu to his London restaurant Ekstedt At The Yard. Still
based around his Scandinavian style, the new menu will feature an open kitchen and wood fire cooking, with guests able to experience dishes including Ekstedt’s juniper smoked apple and beurre blanc, famous from his Stockholm restaurant. You can also expect some surprises from the wine menu, with its focus on interesting European bottles. £ A NEW CITY WINE BAR A new wine bar and shop has opened in Farringdon, promising award-winning wines from boutique producers at cave prices. The aptly named 56 West Smithfield is founded by the family behind boutique vineyard Château De La Cômbe in the South of France and offers a “small but refined” wine list. Also expect nibbles and charcuterie boards, with cheese and meats sourced from the famous market over the road.
20
WEDNESDAY 9 NOVEMBER 2022
MARKETS
FTSE 100 7306.14 6.15
Ã
FTSE 250 18697.89 138.32
Price Chg High Low
GILTS Tsy 2.500 24 ................379.19 Tsy 5.000 25 ................103.70 Tsy 4.250 27 ................103.08 Tsy 6.000 28 ................113.00 Tsy 4.125 30 ................ 340.17 Tsy 4.250 32.................105.67 Tsy 4.250 36 ...............104.48 Tsy 4.750 38................. 110.01 Tsy 4.250 46 ............... 105.56
DIVERSIFIED INDUSTRIALS 0.75 -0.04 0.09 0.07 2.87 0.57 0.94 1.20 1.57
389.8 114.7 122.0 137.5 402.3 135.6 145.9 162.0 175.8
359.2 100.5 98.0 106.8 301.5 98.2 94.8 98.5 89.5
BAE Systems ................. 786.8 -1.8 846.2 528.8 Chemring Gp .................308.0 3.0 367.5 256.0 QinetiQ .............................358.4 0.6 394.2 243.0 Rolls-Royce .......................88.4 2.1 147.2 66.2
AUTOMOBILES & PARTS 6.8 1685.5 89.6 3.8 273.5 111.0
BANKS Barclays ...........................154.2 1.6 217.1 135.7 HSBC Hldgs.....................478.6 -0.8 567.2 414.1 Lloyds Banking ................42.9 0.8 55.1 39.1 NatWest Group..............239.8 1.4 274.2 192.8 Standard Chartered.... 562.0 4.0 638.6 411.6 TBC Bank Group......... 2170.0 20.0 2170.0 901.0 Virgin Money UK ............141.8 0.3 218.1 118.4
BEVERAGES Britvic...............................748.0 0.0 949.5 707.5 Coca-Cola HBC AG......1974.0 48.5 2687.0 1460.5 Diageo ...........................3634.0 -11.0 4103.5 3343.0
CHEMICALS Croda International . 6660.0 168.010410.0 5908.0 Elementis......................... 103.6 7.1 146.5 87.7 Johnson Matt............. 2068.0 46.0 2763.0 1721.0 Synthomer ...................... 133.0 4.6 513.0 88.0 Victrex ...........................1735.0 20.0 2486.0 1576.0
CONSTRUCTION & MATERIALS Balfour Beatty ...............299.2 Barratt Devel ................386.0 Bellway ...........................1937.0 CRH .................................3196.0 Genuit Group ................. 292.0 Grafton Group................729.2 Ibstock.............................158.6 Marshalls.........................269.0 Morgan Sindall Gp..... 1462.0 Persimmon ................... 1254.0 Taylor Wimpey ................96.0 Vistry Group..................605.0 Volution ............................327.5
Smith (DS) ......................301.4 0.9 401.8 241.8 Smiths Gp......................1551.5 -8.0 1629.0 1364.0 Smurfit Kappa Gp.......3031.0 17.0 4168.0 2452.0 Vesuvius...........................365.0 -6.0 491.0 284.6
ELECTRICITY Contour Global..............254.0 0.0 258.0 178.0 Drax Gp ............................535.5 3.0 831.5 473.4 SSE .................................1586.0 16.0 1920.0 1428.0
ELECTRONIC & ELECTRICAL EQUIPMENT
AEROSPACE & DEFENCE
Aston Martin..................140.7 TI Fluid Systems ...........135.0
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Price Chg High Low
-0.4 340.4 215.6 0.3 760.0 323.4 -24.0 3363.0 1586.5 -26.0 4002.0 2756.5 12.0 646.0 252.5 2.2 1295.0 630.6 1.8 208.2 148.6 5.6 744.0 225.4 -28.0 2540.0 1392.0 -69.0 2883.0 1138.5 -0.5 178.0 85.1 -16.0 1225.0 519.5 6.5 557.0 275.5
Halma ............................2202.0 45.0 3216.0 1876.5 Morgan Advanced ........291.5 6.5 379.5 217.0 Oxford Instruments .. 1982.0 4.0 2665.0 1720.0 Renishaw .......................3716.0 100.0 5235.0 3342.0 Spectris .........................3123.0 73.0 3921.0 2458.0
EQUITY INVESTMENT INSTRUMENTS 3i Infrastructure........... 327.0 Aberforth Smlr Cos ...1216.0 Alliance Trust................966.0 Allianz Tech ....................218.0 AVI Global Trust............190.4 Baillie Gifford Japan...802.0 Bankers InvTst ................98.5 Bellevue Healthcare.....158.0 BlackRock Smaller .....1324.0 BlackRock Wld Mining665.0 Bluefield Solar ................131.5 BR Throgmorton ...........569.0 Caledonia Inv ..............3700.0 City of London IT..........395.5 Edin Inv Trust ................612.0 Edin Wwide ....................170.6 European Opp ...............700.0 F&C Investment ............913.0 Fidelity China SPE ........199.6 Fidelity Emg ..................600.3 Fidelity Eur .................... 302.0 Fidelity Spec Val ...........272.0 Finsbury G&I Tst..........826.0 GCP Infra Inv....................93.1 Global Smaller ...............144.0 Greencoat UK..................151.9 Harbourvest Glb.........2375.0 Henderson Sml Co .......805.0 Herald Inv Trust ......... 1798.0 HICL Infr ..........................161.8 Hipgnosis Songs Fund ...84.0 ICG Enterprise ............1020.0 IMPAX ENVIRO MKTS 433.5 JPM American...............736.0 JPM Emerg Mkt ...............99.1
7.5 366.5 288.5 4.0 1508.0 1068.0 8.0 1078.0 887.0 1.0 370.0 200.0 1.4 222.0 172.0 4.0 1034.0 662.0 0.7 125.0 93.0 1.0 206.5 132.4 24.0 2175.0 1170.0 13.0 792.0 530.0 -1.0 146.5 117.4 4.0 994.0 487.0 40.0 4100.0 3055.0 0.0 425.0 372.0 2.0 657.0 543.0 0.6 328.0 160.4 7.0 883.0 629.0 17.0 946.0 770.0 1.6 342.0 178.6 0.9 863.0 555.1 2.0 345.0 267.0 -0.5 315.0 233.5 7.0 930.0 734.0 -0.2 118.6 91.0 1.0 177.0 122.4 0.6 167.2 131.8 80.0 2940.0 2000.0 12.0 1254.0 680.0 48.0 2570.0 1560.0 -3.0 183.0 144.4 -0.6 129.2 79.7 0.0 1314.0 954.0 9.5 583.0 381.5 9.0 795.0 655.0 -0.1 137.2 92.2
CITYAM.COM
FTSE ALL SHARE 4000.38 7.29 Price JPM Euro Disc. ..............391.0 JPM Japan IT ................469.5 Jupiter Fund Mngt ........114.0 Law Debenture ..............759.0 Mercantile IT ..................191.4 Monks Inv Tst ...............980.0 Murray Inc Tst............... 787.0 Murray Intl Tst ............1276.0 Next Energy Solar ........ 103.6 Ninety One ......................212.0 Pantheon Intl Partn ....250.0 Pershing Square........ 2880.0 Personal Assets Tr........475.0 Polar Cap Tech Tst .....1884.0 Renewables Infra Gp ...132.6 RIT Cap Partners.......2225.0 Schroder Asia ................476.0 Schroder Oriental ........ 248.0 Scot American Inv ...... 499.0 Scottish Mortgage ...... 750.0 Sequoia Econ Infra ........85.4 Smithson Inv................1273.0 Syncona ........................... 179.0 Temple Bar......................221.5 Templeton Em Mkts .....139.2 Twentyfour .......................96.0 Vietnam Enterprise ..... 536.0 VinaCapital Vietna ......408.0 Witan Invest ................. 222.0 Wwide Healthcare ....3300.0
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Chg High Low 4.0 574.0 345.0 7.0 705.0 412.5 3.6 265.0 83.8 0.0 830.0 656.0 1.8 276.0 160.0 10.0 1450.0 888.0 0.0 934.0 715.0 8.0 1320.0 1094.0 -0.8 122.6 98.7 -0.8 277.4 172.6 -1.0 351.0 231.0 -25.0 3115.0 2330.0 2.0 509.0 469.0 22.0 2750.0 1778.0 0.2 147.4 118.2 -15.0 2765.0 1980.0 3.0 614.0 446.0 1.0 276.0 231.5 7.0 543.0 440.0 6.6 1515.5 670.6 0.0 109.0 77.3 8.0 2025.0 1140.0 -5.0 219.0 157.2 3.5 254.4 197.6 -0.2 189.2 130.6 0.0 108.5 91.2 1.0 791.0 512.0 4.0 545.0 404.0 2.5 257.0 202.0 5.0 3755.0 2825.0
FIXED LINE TELECOMMUNICATIONS BT Gp ..................................117.5 2.2 200.9 114.1 Telecom Plus ................2175.0 -10.0 2260.0 1274.0
FOOD & DRUG RETAILERS Greggs ...........................2168.0 54.0 3416.0 1673.0 Ocado Gp .........................703.6 29.4 1897.5 393.1 Sainsbury(J)................... 219.2 1.2 299.1 169.9 SSP Group....................... 213.5 -2.7 303.2 184.8 Tesco................................ 230.3 2.6 303.4 199.2
FOOD PRODUCERS Assoc British Foods....1458.0 Cranswick ....................2994.0 Hilton Food Gp .............. 538.0 Premier Foods.................111.8 Tate & Lyle ...................... 707.6 Unilever.........................4056.5
29.5 2131.0 1237.0 -50.0 3820.0 2586.0 -96.0 1250.0 529.0 2.2 126.8 92.8 -3.8 906.5 657.2 24.5 4100.0 3328.0
FORESTRY & PAPER Mondi ............................1540.5
4.5 1950.5 1309.0
GENERAL FINANCIAL 3i Group .........................1255.5 20.0 1503.5 1059.0 Ashmore Gp....................214.0 4.6 321.6 180.9 Bridgepoint Group........224.0 6.6 565.0 173.9 Capital Gearing ..........4930.0 -10.0 5180.0 4745.0
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RISERS
Ferrexpo ....................................... 124.10 Elementis .....................................103.60 Wizz Air Holdings ..................... 2120.00 Price Close Brothers ............ 1029.0 CMC Markets ................. 257.5 Coats Group......................66.6 Hargreaves Lans........... 822.6 IG Gp................................780.0 Integrafin Holdings......271.6 Intermediate Cap .......1154.0 Intl Public Prtnshps ..... 149.2 Investec ...........................462.1 IP Group ............................70.8 JTC ....................................789.0 Liontrust.........................998.0 London Stock Exch ....7786.0 Man Group ...................... 218.1 OSB Group ..................... 434.8 Paragon............................432.8 Petershill Partners .......198.8 Plus500 ......................... 1837.0 Quilter ................................99.8 Rathbone Grp............. 2005.0 Ruffer Investment........309.5 Schroders........................418.3 SDCL Energy .................. 101.8 TP ICAP ............................173.2
Chg High Low 8.0 1452.0 894.0 9.5 317.0 211.5 -0.3 81.4 50.9 18.8 1541.5 740.8 -3.5 847.5 648.0 3.8 602.0 207.2 20.5 2379.0 953.2 -1.2 174.2 136.0 1.5 536.8 349.3 -0.2 123.8 52.9 18.0 936.0 571.0 45.0 2325.0 704.0 36.0 8582.0 6370.0 -2.8 274.9 178.8 -1.6 599.0 375.4 -1.4 617.5 366.0 0.6 324.5 168.6 -4.0 1876.0 1255.5 -1.1 181.2 82.0 33.0 2210.0 1518.0 -2.5 325.0 230.0 12.7 748.6 358.8 -0.6 125.4 96.0 -3.5 204.4 102.5
GENERAL RETAILERS ASOS.................................678.5 B&M..................................372.7 Currys..................................71.5 Dunelm Gp......................948.5 Frasers Group .................737.0 Howden Joinery Gp.....560.2 Inchcape..........................814.5 JD Sports Fashion .........107.9 Kingfisher........................225.2 Marks & Spencer ........... 117.0 Moonpig........................... 149.6 Next ...............................5388.0 Pets at Home Gp ..........290.2 Watches of Switz .........915.0 WH Smith.....................1308.0
31.5 2884.0 15.7 644.0 3.1 140.1 14.0 1434.0 31.0 949.5 10.4 942.2 8.5 928.0 3.5 234.0 -0.2 356.0 2.0 256.9 7.0 384.6 130.0 8426.0 2.4 483.6 18.5 1518.0 3.5 1735.0
490.0 295.5 55.5 670.5 562.5 480.9 647.0 89.2 203.0 93.2 120.5 4383.0 257.8 654.0 1132.5
HEALTH CARE EQUIPMENT & SERVICES Convatec.......................... 211.2 1.0 245.8 Mediclinic Intl .............. 496.6 0.8 501.5 Smith & Neph................1037.5 -5.5 1338.5 Spire Health ...................219.0 0.0 254.5
166.8 286.4 984.6 206.0
HOUSEHOLD GOODS Berkeley Grp Hldgs ...3548.0 Countryside .................... 213.2 Crest Nicholson .............215.8 Reckitt Benckiser ......5686.0 Redrow.............................439.4
-32.0 4903.0 3165.0 -4.0 469.0 191.7 2.4 375.4 172.1 46.0 6808.0 5450.0 -2.0 709.0 372.6
% 8.3 7.4 6.9
Ä
% FALLERS Hilton Food Gp ............................ 538.00 -15.1 DCC .............................................4537.00 -8.2 Persimmon ................................ 1254.00 -5.2
Price Chg High Low
INDUSTRIAL ENGINEERING Bodycote ........................ 556.0 Hill & Smith .................1054.0 IMI ..................................1387.0 Melrose Ind .................... 123.2 RHI Magnesita ...........2106.0 Rotork ..............................283.4 Spirax-Sarco.............. 11255.0 Weir Gp..........................1744.0
MOBILE TELECOMMUNICATIONS
10.0 905.0 460.4 28.0 1866.0 893.0 67.0 1838.0 1071.0 -0.8 173.5 95.5 30.0 3702.0 1584.0 5.2 373.4 229.6 325.0 17135.0 9130.0 -8.0 1897.0 1328.5
INDUSTRIAL METALS Evraz ...................................81.0 Ferrexpo ...........................124.1
0.0 633.6 9.5 323.0
53.1 97.6
INDUSTRIAL TRANSPORTATION Clarkson........................2870.0 10.0 3975.0 2500.0 Intl Dist Serv .................229.3 13.0 526.8 183.2 Redde Northgate ..........354.5 9.0 440.5 283.5
LEISURE GOODS Games Workshp .........6585.0 185.010090.0 5690.0
LIFE INSURANCE abrdn ................................180.3 6.8 263.2 133.0 Aviva .................................433.9 -0.8 602.9 373.8 Just Group ........................64.2 0.1 95.4 56.0 Legal & General.............239.5 0.3 307.8 204.1 Phoenix Gp......................552.8 1.0 701.4 506.8 Prudential ........................911.2 4.6 1509.0 797.6 St James Place ........... 1085.5 5.5 1731.5 920.0
MEDIA 4imprint........................3870.0 Ascential ........................202.0 Auto Trader Gp.............. 547.2 Euromny Inst Inv....... 1450.0 Future .............................1377.0 Informa............................572.0 ITV .......................................73.2 Moneysupermkt.com ...182.4 Pearson ...........................948.6 RELX ...............................2314.0 Rightmove Group .......... 513.4 WPP ................................. 824.8
50.0 4045.0 2240.0 3.9 448.8 176.2 11.6 741.8 486.2 -2.0 1466.0 829.0 21.0 3830.0 1145.0 0.8 624.0 464.4 1.8 125.8 55.2 3.7 225.6 167.0 0.8 970.6 571.8 33.0 2449.0 2071.0 10.0 800.4 445.4 19.2 1224.0 725.8
MINING Anglo American .........3064.0 Antofagasta ................ 1309.5 BHP Group ....................2316.0 Centamin ............................97.8 Endeavour Mining......1648.0 Fresnillo ...........................807.0 Glencore ..........................524.7 Hochschild Mining ..........58.5 Rio Tinto ........................ 5111.0
86.0 4170.5 35.5 1781.5 4.0 3019.0 3.5 109.8 67.0 2100.0 33.0 986.8 -7.3 541.5 2.5 173.4 67.0 6225.0
Price Chg High Low
2547.5 991.6 1868.4 74.4 1461.0 622.4 351.9 51.5 4375.5
Vodafone Gp ...................106.2
1.5 139.5
98.6
-55.0 3266.0 -1.5 648.5 -6.2 312.3 -3.4 990.2 -9.0 580.0
1729.0 376.4 177.7 815.4 346.6
-16.1 501.8 0.4 253.8 -42.0 1569.0 -18.2 530.0 -63.0 2526.5 -2.0 62.2
317.6 179.8 847.5 298.5 1833.4 36.8
OIL & GAS PRODUCERS BP ......................................485.7 Capricorn Energy..........253.8 Energean .......................1527.0 Harbour Energy ............ 389.0 Shell ...............................2438.0 Tullow Oil...........................46.9
OIL EQUIPMENT & SERVICES Wood Gp(J) ....................160.4 -2.4 251.7 104.5
PERSONAL GOODS Burberry Gp..................1975.5 26.5 2063.0 1482.0 PZ Cussons......................201.5 0.5 214.5 182.8
PHARMACEUTICALS & BIOTECHNOLOGY AstraZeneca .............10660.0 Dechra Pharma...........2622.0 Genus.............................2950.0 GSK .................................1387.0 Hikma Pharma ............. 1313.0 Indivior ..........................1674.0 Puretech ......................... 244.0
14.011440.0 8191.0 26.0 5365.0 2520.0 28.0 5595.0 2234.0 9.6 1810.4 1296.0 55.5 2378.0 1190.5 4.0 1698.0 1060.0 -2.5 346.0 147.6
REAL ESTATE Assura .................................55.1 Big Yellow Gp ................1113.0 British Land ....................381.2 Captl & Count Prop .......111.4 CLS Hldgs ........................140.0 Derwent London .........2310.0 Grainger...........................232.2 Grt Portland Est .............737.0 Hammerson ......................22.5 Land Securities.............590.6 LondonMetric Prop ......184.2 Primary Hlth Prop .........114.0 Safestore Hldgs ............896.0 Savills .............................. 899.5 SEGRO ..............................784.2 Shaftesbury....................385.6 Supermarket Income ..103.0 Target Healthcare...........86.6 TR Property IT ..............321.5 Tritax Big Box ................140.8 Tritax Eurobox ................. 61.6 UK Commercial Prop .....62.5 Unite Group ...................895.0
/$ 1.1593 /¥ 168.54
à à Ã
0.0028 €/$ 1.0088 0.0133
€/£ 0.8702
0.4910
€/¥ 146.67
Price Chg High Low Urban Logistics .............146.0 2.0 199.0 118.5 Workspace Gp ...............436.6 -0.2 887.0 343.4
SOFTWARE & COMPUTER SERVICES
NONLIFE INSURANCE Admiral Gp....................1929.5 Beazley............................644.5 Direct Line Ins ................193.2 Hiscox ...............................977.0 Lancashire Hldgs...........571.0
£
/€ 1.1492
-1.1 73.0 -16.0 1724.0 1.0 556.4 0.3 179.3 -2.2 231.0 34.0 3528.0 -0.2 319.2 0.0 777.5 1.0 39.9 1.6 813.2 -0.7 285.2 0.1 153.1 -8.0 1418.0 10.0 1450.0 5.8 1436.5 2.6 662.0 0.5 133.0 -0.7 119.2 0.0 504.0 0.2 249.0 0.9 117.2 -0.3 93.4 4.0 1207.0
48.6 987.0 324.8 95.5 131.4 1876.0 205.4 700.5 17.2 485.3 161.8 98.7 794.0 763.5 694.0 326.4 96.0 77.9 267.0 125.7 58.7 53.9 791.5
Auction Tech ..................831.0 Aveva Gp........................3141.0 Baltic Classifieds...........150.0 Computacenter............1926.0 FDM Group.....................648.0 Kainos Gp ......................1287.0 Micro Focus Intl ............523.0 NCC Grp ...........................198.2 Playtech ...........................553.0 Sage Group .....................725.6 Softcat ...........................1235.0
31.0 1516.0 678.0 3.0 3459.0 1924.0 5.0 253.0 99.8 34.0 2978.0 1810.0 -3.0 1280.0 599.0 -3.0 2084.0 954.5 0.2 527.0 256.3 -0.4 249.0 167.4 8.0 770.0 390.8 11.2 853.8 595.6 25.0 1967.0 1084.0
SUPPORT SERVICES Ashtead Gp ................. 4900.0 76.0 6450.0 3359.0 Babcock Intl Grp.......... 285.0 11.0 367.6 268.6 Biffa ..................................415.0 1.0 415.8 283.0 Bunzl ...............................2917.0 16.0 3163.0 2575.0 DCC .................................4537.0 -407.0 6486.0 4537.0 Diploma.........................2556.0 66.0 3460.0 2158.0 discoverIE Gp................. 797.0 2.0 1062.0 597.0 Essentra...........................233.0 3.0 357.0 175.2 Experian .......................2770.0 77.0 3667.0 2285.0 Ferguson .......................9702.0 18.013305.0 8680.0 Hays ...................................115.3 0.8 160.3 101.2 Homeserve ....................1188.0 0.0 1190.0 608.5 Intertek Gp..................3892.0 73.0 5782.0 3619.0 IWG...................................166.8 -3.1 305.5 115.4 MITIE GROUP...................74.3 0.4 79.8 46.5 Network Int....................334.4 -1.8 336.2 171.8 Pagegroup...................... 458.2 1.0 678.0 362.2 Rentokil Initial...............541.2 13.6 636.2 444.5 RS Group ........................882.0 -11.0 1255.0 812.0 Serco .................................167.3 2.9 188.3 121.2 Travis Perkins................884.2 22.0 1635.0 738.0
TECHNOLOGY HARDWARE & EQUIPMENT Spirent Comms..............270.4
5.2 288.2 215.4
TOBACCO Br Am Tob ....................3354.0 -14.0 3628.0 2530.0 Imperial Brands ......... 2135.0 1.0 2135.0 1486.0
TRAVEL & LEISURE 888 Holdings.................. 103.3 Carnival...........................696.0 Compass Gp................. 1862.5 Dominos Pizza................244.4 easyJet ............................381.7 Entain .............................1324.5 FirstGroup.......................106.9 Flutter Ent...................11785.0 Intercontl Htls ............4754.0 Intl Cons Airl.................. 129.7 Mitchells & Butlers ......140.4
1.8 362.0 19.4 1615.6 -9.5 1969.5 3.8 465.2 15.5 727.4 11.0 2025.0 0.9 139.5 -30.012510.0 52.0 5338.0 1.9 178.3 2.3 266.8
86.2 501.4 1453.5 215.2 285.1 1075.5 88.5 7614.0 4193.0 93.7 102.0
Ã Ä Ã
0.0090 0.0022 0.0690
Price Chg High Low National Express ............174.2 2.4 284.2 161.3 TUI AG .............................142.6 3.5 294.2 103.7 Wetherspoon (JD) .......488.2 5.6 973.0 389.8 Whitbread.....................2567.0 30.0 3338.0 2285.0 Wizz Air Holdings ......2120.0 136.0 4867.0 1357.5
AIM 50 Abcam ...........................1304.0 Advanced Medical ........273.0 Alliance Pharma...............57.9 ASOS.................................678.5 Camellia ........................4950.0 Central Asia Metals .....243.0 CVS Group..................... 1957.0 Dart Group ..................... 930.6 Diversified Energy ........128.6 EMIS Group ..................1876.0 FD Technologies .........1500.0 Fevertree Drinks ...........983.5 Frontier Devs............... 1320.0 Gamma Comms ...........1140.0 GB Group .........................385.6 Gooch & Housego .........479.5 Hurricane Energy...............8.1 Impax Asset Mgmt ..... 702.0 Iomart Group .................130.0 IQE....................................... 46.1 James Halstead .............188.0 Johnson Service Gp .......99.5 Keywords Studios .....2522.0 Learning Tech Gp ..........122.5 M&C Saatchi ..................129.8 M.P. Evans ......................846.0 Majestic Wine................108.3 Midwich Group ..............479.5 Molten Ventures .......... 386.8 Mortgage Advice B ..... 670.0 Next Fifteen Comm ....1074.0 Nichols............................1122.5 Numis Corporation .......180.0 Polar Capital Hdgs........445.5 Purplebricks Gp................11.6 Renew Holdings.............616.0 RWS Holdings ................322.8 Secure Income REIT ...461.0 Serica Energy.................315.0 Smart Metering Sys.....766.0 Telford Homes................349.5 Thorpe (F.W.)..................429.5 Watkin Jones ....................93.1 Young’s Brew NV..........604.0 Young’s Brew-A............1012.0
34.0 1750.0 1049.0 -0.5 341.0 234.5 -0.1 121.6 53.7 31.5 2884.0 490.0 100.0 6925.0 4810.0 5.0 284.0 200.5 23.0 2425.0 1549.0 23.8 1423.0 667.8 -1.9 142.0 98.5 0.0 1910.0 1136.0 32.0 2450.0 1230.0 -5.0 2812.0 821.5 14.0 2595.0 1078.0 30.0 1844.0 1012.0 9.8 883.0 330.0 0.5 1275.0 467.5 0.3 11.7 3.4 12.0 1482.0 500.0 0.0 200.0 129.0 0.9 50.4 28.2 -3.0 580.0 181.0 1.1 162.0 77.0 32.0 2946.0 1952.0 -0.1 188.8 100.0 -2.5 216.0 128.2 4.0 1085.0 780.0 -3.7 712.0 75.5 -10.5 667.0 440.0 -5.6 1028.0 247.0 -12.0 1470.0 482.0 60.0 1458.0 755.0 -27.5 1540.0 1055.0 6.8 343.0 170.4 13.0 835.0 395.0 0.2 33.1 11.0 4.0 872.0 555.0 4.8 654.0 264.4 0.0 480.0 395.5 -7.5 450.0 183.2 -2.0 958.0 688.0 0.0 349.5 349.5 0.5 495.0 345.0 1.3 276.5 79.9 0.0 890.0 564.0 14.0 1660.0 870.0
WEDNESDAY 9 NOVEMBER 2022
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THE PUNTER RACING TRADER
Wally Pyrah previews today’s card from Happy Valley
Take Heart that Rock and Ho will have More class
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ACING enthusiasts can look forward to an uninterrupted and exciting nine-race programme at Happy Valley today. With Tropical Storm Nalgae, which caused last week’s cancellation at the city track, safely blown back into the South China Sea, bettors are still faced with some difficult puzzles to solve, although there could be some value-formoney wagers. The action takes place on the ‘A’ course, which features a short home straight, measuring just over one-anda-half furlongs. As normal, the draw will play an im-
portant role again in determining winners, with past records showing the inside stall number one holds a big advantage, especially if a horse is quick from the gates. The main event on the programme is the Class Two Po Yan Handicap (1.45pm), worth over £250,000 in prize money, and featuring some of the fastest speedsters in Hong Kong. This looks a case of “blink and you will miss it” with 10 gallopers set to explode around two bends, in a five-furlong dash. With the likes of well-drawn frontrunner Classic Unicorn, and Zac Purton-ridden Whizz Kid – unbeaten in three course and distance starts –
Vincent Ho partners Rock Ya Heart for the first time since January vying for the lead, this has the look of a burn-up from start to finish. It’s interesting to note that jockey Vincent Ho climbs back aboard useful sprinter ROCK YA HEART for the first time since January, when he finished placed at Sha Tin. Ho and trainer Francis Lui have had a fruitful partnership over the years, and have already visited the winners’ circle a handful of times this season. Rock Ya Heart has only raced twice over the minimum trip in a 17-start career, finishing placed at Sha Tin, and was notably a desperately unlucky loser over this course and distance in July. The son of I Am Invincible had a few
of these rivals behind him on that occasion, when, after having to sit and suffer from an awkward draw, he bobbed and weaved a passage down the home straight, and then dashed just too late to catch rival Classic Unicorn. His closing sectional times were impressive in that contest, and this time, with a low draw in his favour, he is mapped to get the run of the race. A couple of recent encouraging efforts, both over six furlongs at Sha Tin, should see him spot-on for this, and he could surprise at attractive odds. Earlier on the card, it may be worth taking a chance on speedy MULTIMORE, who gets his chance to shine in the Tung
Wah Group of Hospitals Challenge Cup Handicap (12.45pm) over five furlongs. This Benno Yung-trained six-year-old has been difficult to keep sound – has had leg issues – but nevertheless is useful at his best and comes into the contest with an unbeaten two from two record over the course and distance. He goes well fresh, won first-up last season, and with a low draw in his favour will be hard to keep out of the frame.
POINTERS Multimore e/w 12.45pm Happy Valley Rock Ya Heart e/w 1.45pm Happy Valley
Master Purton fancied to fire home Heroic Happy Valley double W
HEN Champion Jockey Zac Purton teams up with 11-time Hong Kong Champion Trainer John Size it’s normally a recipe for success. Although the combination has a near 30 percent win strike-rate this season, you can guarantee the trainer would not have been a happy man after watching his Beauty Eternal, with Purton aboard, beaten
at Sha Tin on Sunday when suffering all kinds of interference. To say Purton was embarrassed was an understatement, and the jockey will surely seek to gain compensation for Size when he partners TEMPEST EXPRESS in the Po Yee Handicap (1.15pm) over nine furlongs. The New Zealand-bred gelding has never raced at the city track but looks capable of adapting to the
tight turning circuit, and has already won over the trip at Sha Tin last December with Purton aboard. On that occasion he beat principal rival Champion Dragon by a length, and Tempest Express now renews his rivalry on 13-pound better terms. Purton also gets a chance to make up for a missed winning opportunity, following last week’s cancelled card at the Valley, when he retains the ride
aboard HEROIC MASTER for trainer Frankie Lor in the Seymour Handicap (2.15pm) over five furlongs. This Australian-bred gelding arrived in Hong Kong with a big reputation, after winning two of his four starts in his home territory. After three trials, including a course and distance win in September, he produced an encouraging performance when an
eye-catching third to Class Two-rated Ping Hai Galaxy over the course and distance last month. That form is the best on view, and he should take plenty of beating.
POINTERS Tempest Express 1.15pm Happy Valley Heroic Master 2.15pm Happy Valley
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SPORT
CITYAM.COM
WEDNESDAY 9 NOVEMBER 2022
SPORT ON THE BRINK Great Britain facing early Billie Jean King Cup exit after opening defeatnes
SPORT DIGEST QATAR WORLD CUP IS A MISTAKE, SAYS BLATTER
£ Sepp Blatter, the former Fifa president, says Qatar should not have been awarded this year’s World Cup. Blatter, 86, led football’s governing body when its executive committee handed the tournament to the tiny Gulf state. “Qatar is a mistake. The choice was bad,” he told Swiss media. It’s too small a country. Football and the World Cup are too big for that.” Blatter said he had favoured appointing USA as hosts for 2022, four years after Russia. He added: “It would have been a gesture of peace if the two long-standing political opponents had hosted the World Cup one after the other.”
JONES WANTS ENGLAND TO BE ANGRY AGAINST JAPAN
£ England head coach Eddie Jones has accepted blame for Sunday’s defeat by Argentina and called on his side to take out their frustration on Japan this weekend. “I want us to play with a certain sort of anger,” he said. “I’m very disappointed in the last game. We weren’t good enough. That’s totally my responsibility, I didn’t coach well enough. We looked at times like we lacked a bit of energy, particularly in our attack. Maybe we’re just overthinking a bit. That’s entirely my fault.”
STOKES: DO OR DIE SEMI WILL BRING OUT BEST IN US
GREAT BRITAIN face an uphill battle to reach the last four of the Billie Jean King Cup Finals after losing their opening match against Kazakhstan in Glasgow last night. Katie Boulter (pictured) took the first set against world No51 Yulia Putintseva but slipped to a 4-6, 6-3, 6-2 defeat before Harriet Dart lost 6-1, 6-4 to Elena Rybakina in the second rubber. Kazakhstan’s victory at the Emirates Arena means they could clinch top spot in the group and eliminate Great Britain by beating Spain today.
£ England’s Ben Stokes has vowed that the team will take a fearless approach in tomorrow’s T20 World Cup semi-final with India in Adelaide. “We know if we execute anywhere near where we want to be then we will be a very hard team to beat,” said the Test captain. “We’re in a position now that is do or die. What I don’t think anyone will do is take a backward step. We talk a lot about how we want to play the pressure moments. What we’ll see is us trying to deliver on what we talk about, not taking the cautious option.”
BREXIT FAILING ENGLAND EXCLUSIVE: New rules not benefiting homegrown talent, major study finds. By Frank Dalleres
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REXIT has drastically shrunk the pool of footballers available to English clubs without having any clear benefit to the prospects of homegrown talent in the Premier League. The findings are revealed in a major new study by football consultancy Analytics FC and law firm Fragomen shared with City A.M. and due to be published this week. The research raises fresh questions about whether post-Brexit eligibility rules are aiding the England national team as intended at a time of renewed debate about their future.
Since January 2021, when English clubs were first required to obtain a points-based Governing Body Endorsement (GBE) from the Football Association for overseas signings, the number of players available has shrunk by around 90 per cent, the report estimates. This has been mitigated slightly by a relaxation of the rules for under21s but remains a fraction of the market at teams’ disposal when Britain was part of the European Union. Premier League clubs’ have not lost any pulling power at the top end, as seen in the arrival of superstar striker Erling Haaland to Manchester City earlier this year. But the ability of the English top division to compete with European rivals for the best young foreign talent does appear to have been dented. The number of leading non-British 18-year-olds signing for Premier League teams has dropped since Brexit, halving from 2020-21 to 2021-22. “There has been a real change in the way that English clubs have gone
296,000
Premier League minutes played by British footballers last season
*
about their business in the recruitment of 18-year old-players,” says the Brexitball report. “Though there are Fifa regulations in place to prohibit the transfers of Under-18s, the post-Brexit market has seen a move away from the domination that English clubs had shown in 2020/21.” Greater restrictions on the signing of foreign
players does not yet appear to have led to greater importance being placed on domestic talent, however. Although spending by Premier League clubs on homegrown players has continued to grow steadily post-Brexit, it is still outstripped by sums going on non-UK signings. In summer 2022, top-flight teams spent £1.2bn on foreign footballers and just over £700m on domestic talent. And while the number of British players making an appearance for Premier League clubs has increased, from 272 in 2019-20 to 322 last season, the number of minutes accrued by them has fallen over the same period, from 315,000 to 296,000. The report says: “The data so far suggests there has not been an enormous im-
England boss Southgate
pact on opportunities for English and Scottish players in terms of the number of minutes they are playing.” Post-Brexit rules have benefited domestic players more in the second tier, where appearances and minutes are both up, while the end of freedom of movement has reversed the exodus of young talent such as Jude Bellingham to other European leagues. The findings, however, are likely to encourage Premier League clubs who are reported to be arguing for a loosening of red tape around non-British signings. The Football Association, which is keen to preserve opportunities for English players, is expected to resist any change to GBE rules. “Undoubtedly, the picture around Brexit and GBE will change constantly moving forwards,” the report concludes. “Political sentiment and governments are always shifting. Opportunity for well thought out lobbying supported by objective data to change or adjust regulations will be important.”
WEDNESDAY 9 NOVEMBER 2022
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Rugby clubs use DIY media to lure new fans
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ONE are the days of sending season tickets out via carrier pigeon and releasing fixture lists through smoke signals, and here are the days of holograms, on-demand video and behindthe-scenes exposure. As professional sport increasingly embraces the digital world, rugby clubs have had to revolutionise their content to engage existing fans, entice new ones and compete in a heavily crowded market. City A.M. last month reported that the Six Nations was in advanced talks with streaming giant Netflix over a series based on the competition. Clubs, too, have their own plans in own digital media to expand their audience. Irish province Munster have launched a subscriber platform called “Access Munster”, which offers fans exclusive content for €4 (£3.50) per month. “You find Munster fans flung far and wide across the world but they’re not in a position to come to the stadium every week,” said the club’s head of commercial, Dave Kavanagh.
Advertising expert Steve Howell reviews the best and worst World Cup commercials
Munster and Northampton turn to behind-the-scenes content in bid to broaden their appeal, writes Matt Hardy “The British and Irish Lions films were a good reference point for us. They showed the heat in the dressing room and it’s all internal. At Munster we wanted to create a system where players would turn around and see a camera but behind the camera would be a colleague. It’s all about trust.” Northampton Saints director Tim Percival agrees that trust is vital when working with coaches and players. “The challenging bit for us is the approval process,” Percival said. “The playing department might not be keen on showing certain things – such as sensitive moments or game plans – but it’s about finding a compromise quite quickly. We’ve had to have debates to put something we like the look of in.” Percival says videos have shown immediate results, especially on TikTok and Instagram, and cites three main reasons for creating them. “Brilliant content drives revenue, we
want to attract new supporters while engaging current ones, and we want to put ourselves in the shop window for Netflix and Amazon,” he added. “These are pilots for broadcasters.”
‘SUPPORTERS WANT THIS’
Northampton use internal filming with external editing, while Munster keep the entire production in-house. When agency Roc Nation and its client England player Ellis Genge arrived for a recent interview, each had their own camera crew in tow. “We have the personalities, facilities and stadiums but it’s about how we bring people inside of our squad,” Kavanagh said. “We have priced it well but with the cost of living crisis we were never going to go top dollar. We want accessibility and affordability. We actively market this, too, now with paid marketing. We will see where we get to but
if we are at 10,000 subscribers in a few years we will be happy.” The appetite for content is there. Some prominent social media accounts dedicated to rugby have seen their followings skyrocket and are now invited to media launch events. Beyond that, though, there is a pressing need to convert casual international fans into week in, week out domestic fans – and that’s the challenge. “Clubs cannot be complacent about trying to retain supporters’ attention and the feedback from our supporters is that they want this,” Percival said. “The most impressive execution of this is the Wrexham documentaries [featuring the Ryan Reynolds-owned National League football club on Disney+] – they look so smart. “I wish a famous rugby face or celebrity would take a chance on a rugby club, it would have an incremental effect on rugby in its entirety.”
‘Access Munster’ costs fans €4 a month
PEPSI 1, COKE 0
T
IS the season with a World Cup unceremoniously stuffed in the middle like the turkey in a Pret Christmas sandwich. The 12 years since Qatar were awarded the tournament have been full of controversy and, as this month’s tournament nears, organisers must be willing for kick-off so everyone stops focusing on the jail time you face for being a homosexual in the host nation. Anecdotally, I’ve never experienced such a lack of excitement for a World Cup. Even USA ‘94 had more fervour and England didn’t qualify. But one thing that usually gets the goosebumps going is the flurry of adverts that surround a tournament. Name a famous football ad and I guarantee it’s from a World Cup. And surely World Cup + Christmas = a marketer’s dream scenario? Well, actually, probably not. With an Islamic nation hosting, a global brand will probably make the Christian holiday take a back seat. Maybe a purpose-driven brand will take a righteous stand about the controversy surrounding the tournament? Well, actually, probably not. Global brands might seem empathetic, tweeting their prayers when disaster strikes, but they seldom stick their neck out over Fifa or the Middle East. In fact, it’s been quiet in adland for this tournament. Nike hasn’t dropped its campaign yet. Nor has Adidas or fellow sponsor Visa. So maybe there are a few campaigns to come. Until then, let’s look at the brands upon whom the excitement of Qatar 2022 solely rests.
THE VERDICT
ITV is promoting its coverage by cleverly avoiding any reference to Qatar and instead taking us on a trip down memory lane of past tournaments. It’s nostalgic and beautifully put together, although it doesn’t get the adrenaline going like I hoped it would. COCA-COLA has launched its “Believing is Magic” campaign, in which a young girl is swept up in a carnival-
Pepsi’s ad (above), which features Lionel Messi, trumps the effort of its rival Coca-Cola (bottom) and ITV’s promo (below), which uses footage of its coverage from previous World Cups esque celebration of the beautiful game after taking a sip from the famous bottle. It’s like a visualisation of her literally drinking the kool aid. American beer giant BUDWEISER has set its commercial inside a massive tunnel and poses the ponderously obtuse statement “No Matter Your Tunnel, The World Is Yours To Take”. With those
I’m left wondering about the italics and what the tunnel in my life is, other than the Northern Line
exact italics. Messi and Neymar make their obligatory appearance, but I’m left wondering about the italicised words and what the tunnel in my life might be, other than the Northern Line. HYUNDAI has given us the most unexpected pairing of Korean boyband BTS and former Aston Villa manager Steven Gerrard in the same advert. In fact, it feels like three adverts in one – there’s some football stuff, then a BTS pop video on a rooftop, and then some banal, cliched driving along a coastal road. It’s a weird mix of drivel that feels really disjointed. But admittedly, I’m not a BTS fan. Or a Steven Gerrard fan. Or a boring cliched car ad fan either. PUMA’s “Find Your Fearless” ad features a group of London teens on their way to a house party before embracing their fearlessness and becoming grime artists. As you do. It follows Puma’s usual mix of music, fashion, sport and youth culture and does so with stellar performances from the young actors
alongside the ubiquitous Neymar, Chelsea’s Christian Pulisic and Inter Miami reserves’ Romeo Beckham. It screams that it never wanted to be a World Cup ad, so it sits like an empty promise shouting “be fearless” with nothing fearless about it. PEPSI’s World Cup campaign is the only one that feels like it answered the brief. It’s a joyful extravaganza of oneup-manship like World Cup campaigns gone by. Messi, Paul Pogba and Ronaldinho feature in a mass game of nutmegs that culminates in Qatar with some football tricks involving a thobe. It’s well executed, exciting and set to Fatboy Slim’s “Rockafeller Skank”. So what’s not to love? Pepsi aside, if the World Cup is anything like the adverts it won’t just be the most controversial World Cup ever but the most boring one too. Steve Howell is Creative Partner at agency Dark Horses.